The document discusses economic analysis of renewable energy systems. It explains that renewable energy systems require higher initial capital costs than conventional systems. It then covers several key metrics used in economic analysis of renewable energy projects including net annual cost, annual savings, cumulative savings, life cycle savings, and payback period. These metrics consider factors like capital costs, operating costs, fuel savings, tax deductions, and resale value to evaluate the overall costs and savings of renewable energy systems over their lifetimes. The document also provides some background on the Clean Development Mechanism under the Kyoto Protocol, including how it allows developed countries to fund emission reduction projects in developing countries.