Techno-Economic Feasibility Study

Bridging Technical and Financial Viability

A Techno-Economic Feasibility Study (TEFS) is a comprehensive assessment that evaluates the technical and commercial viability of a proposed project. It serves as a critical decision-making tool, ensuring that the project is technically sound, financially viable, and commercially sustainable. The study integrates engineering analysis, economic modeling, and risk assessment methodologies to provide a data-driven evaluation of project feasibility.

Technical Viability :

This facet evaluates the project’s technical feasibility, examining factors such as:

  • Technology Readiness Level (TRL): Assessing whether the chosen technology is proven, scalable, and commercially deployable.
  • Resource Availability: Ensuring the availability of raw materials, manpower, and critical infrastructure required for execution.
  • Site Suitability Analysis: Conducting geotechnical investigations, environmental impact assessments (EIA), and land-use planning to determine location feasibility.
  • Process Flow and Engineering Design: Verifying whether process technology, plant layout, and equipment selection meet industry standards.
  • Compliance & Regulatory Standards: Ensuring alignment with national and international engineering codes, such as BIS, ASME, ISO, and IEC.
Commercial Viability

The study explores the project’s market feasibility, covering:

  • Market Demand Analysis: Identifying industry trends, consumer demand, and competitive positioning.
  • Revenue Projections & Business Modeling: Forecasting potential earnings, market share, and return on investment (ROI) using DCF (Discounted Cash Flow) analysis.
  • Pricing Strategies & Cost Competitiveness: Evaluating whether the project’s products/services can compete in the market while maintaining profitability.
  • Supply Chain and Distribution Feasibility: Assessing the availability of raw materials, logistics infrastructure, and vendor partnerships for seamless execution.
  • Economic Viability Metrics: Incorporating financial indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), and Break-Even Analysis.

Core Components of a Techno-Economic Feasibility Study:

Project Costing:

A detailed cost estimation is fundamental to project feasibility, breaking down capital and operational expenditures (CAPEX & OPEX). It includes:

  • Fixed Capital Investment (FCI): Cost of land, buildings, machinery, and equipment.
  • Working Capital Requirements: Cash flow required for day-to-day operations.
  • Depreciation & Amortization Analysis: Understanding long-term asset depreciation impact on financial projections.
  • Cost Contingency Planning: Allocating reserves for unexpected price fluctuations in raw materials, labor, and logistics.

Financial Analysis:

A detailed financial assessment evaluates project sustainability through:

  • Cash Flow Projections: Forecasting revenue streams and expenditure over the project lifecycle.
  • Investment Appraisal Metrics: Calculating Payback Period, Debt Service Coverage Ratio (DSCR), and Profitability Index (PI).
  • Funding & Financing Strategy: Exploring capital raising options (equity financing, debt financing, government grants, and venture capital funding).
  • Break-Even Analysis: Determining the point at which the project recovers its investment costs and starts generating profit.

Sensitivity Analysis:

Risk assessment is crucial in determining how external variables influence project success. Sensitivity analysis involves:

  • Scenario Modeling: Assessing the impact of fluctuations in raw material costs, labor expenses, and market prices on financial feasibility.
  • Risk Probability Matrix: Identifying potential risks and their likelihood of occurrence.
  • Monte Carlo Simulation: Running probability-based simulations to assess financial and operational risks under different scenarios.
  • Regulatory & Policy Risks: Evaluating the impact of government regulations, taxation policies, and compliance mandates on profitability.

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Why a Techno-Economic Feasibility Assessment is Crucial for Project Success

A techno-economic feasibility assessment is more than just a planning document—it is a strategic evaluation that bridges the gap between engineering potential and business profitability. Whether you are launching a greenfield infrastructure project or upgrading an existing industrial facility, a techno-economic feasibility study serves as a foundational step to mitigate risks, align with stakeholder expectations, and attract investor confidence.

Avant-Garde specializes in preparing detailed techno-economic feasibility reports that align with both technical specifications and financial objectives. Our reports are tailored to meet the needs of investors, developers, and regulatory authorities, ensuring transparency and data-backed decision-making.

Each techno-economic feasibility study we conduct is designed to support long-term techno-economic viability, addressing real-world challenges such as resource constraints, market volatility, compliance mandates, and sustainability goals. Our Deliverables Include:

  • Executive summary for stakeholder briefing
  • Technical solution assessment and site evaluation
  • Market analysis and pricing competitiveness
  • CAPEX & OPEX projections
  • Financial modeling (NPV, IRR, DSCR)
  • Scenario planning and sensitivity analysis
  • Risk mitigation framework

By choosing Avant-Garde, you gain a partner with deep domain expertise in developing techno-economic feasibility reports that are comprehensive, regulatory-ready, and investor-friendly—ensuring your project’s techno-economic viability from concept to commissioning.

Unlocking Project Potential

Balancing Technical Viability and Financial Prosperity

A Techno-Economic Feasibility Study is a strategic roadmap that empowers decision-makers with the insights needed to gauge the viability and profitability of a proposed project. It bridges the gap between technical feasibility and financial viability, ensuring that projects move forward with clarity, confidence, and a solid foundation for success. This involves a comprehensive techno-economic assessment, detailed in a techno-economic feasibility report.

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