Question: please help me answer this question in the picture attached. QUESTION In 2002 Dutch power company, Essent, built a biomass power plant in which biomass

please help me answer this question in the picture attached. QUESTION

please help me answer this question in the picture attached.

QUESTION In 2002 Dutch power company, Essent, built a biomass power plant in which biomass is converted to produce bio-energy to 60,000 households. Unfortunately Essent was forced to shut down this power plant in 2012 as it was no longer financially viable due to prevailing market conditions. (a) Can you think of the reason why the power station was forced to shut down under these circumstances? (8 Marks) (b) Would a long term sales agreement have avoided the closure? Explain. (8 Marks) (c) Identify one important measure that the project could have taken to avoid this situation? (4 Marks) (d) Why would lenders/investors in a bio-energy plant insist on a long-term input-supply contract for the biomass feedstock needed to fuel the power plant? (5 Marks) QUESTION In 2002 Dutch power company, Essent, built a biomass power plant in which biomass is converted to produce bio-energy to 60,000 households. Unfortunately Essent was forced to shut down this power plant in 2012 as it was no longer financially viable due to prevailing market conditions. (a) Can you think of the reason why the power station was forced to shut down under these circumstances? (8 Marks) (b) Would a long term sales agreement have avoided the closure? Explain. (8 Marks) (c) Identify one important measure that the project could have taken to avoid this situation? (4 Marks) (d) Why would lenders/investors in a bio-energy plant insist on a long-term input-supply contract for the biomass feedstock needed to fuel the power plant

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