## 3 Methodological Framework
### Data Availability  
3.2.1. Economic Context: Electricity and Inflation Rates  
To accurately assess the economic performance of the kindergarten renovation project, electricity prices and inflation rates during the analyzed periods were incorporated into the LCC analysis. These metrics, sourced from Eurostat, reflect the real-world conditions impacting the project's financial sustainability. Table 6 presents key electricity prices and inflation rates for Austria for 2021 and 2024, including a 2024 (without subsidy) column to estimate prices under unsubsidized conditions [51; 52; 53].  
Austria's electricity export prices are determined by wholesale market prices, particularly the day-ahead market, which drives cross-border electricity trade and influences arbitrage opportunities between countries. In the absence of precise export price data, we assumed that the export price would equal Austria's wholesale price. The values used include the 2021 average price (from both semesters) and the 2024 first semester price. For the import price, all components, such as taxes, levies, and network charges, were included to reflect the full cost borne by consumers. The 2021 and 2024 values incorporate Austria's Eco-Social Tax Reform, which introduced carbon pricing, further increasing energy costs [54; 55]. The buyback price for 2021 was provided by AUORAL project partners. To estimate the base price for 2024, we applied a 21.34% increase derived from observed price trends. This adjustment yields a 2024 base buyback price of 0.0771 EUR/kWh. The \"2024 (without subsidy)\" column estimates the impact of removing Austria's energy subsidies and reductions. This scenario highlights potential cost increases for end-users under an unsubsidized framework [56].  
These values highlight significant fluctuations influenced by external shocks, including the COVID-19 pandemic and the war in Ukraine. During the pandemic, global supply chain disruptions, shifts in energy demand, and government interventions created volatility in energy markets, initially leading to lower prices but subsequently driving increases as economies reopened. The war in Ukraine further exacerbated energy price inflation in Europe due to disruptions in natural gas supplies, impacting electricity prices and Austria's inflation rates. These factors were integrated into VERIFY's analysis to ensure that financial assessments reflect the turbulent economic conditions and provide a realistic understanding of energy performance under both historical and projected market scenarios.  
Additionally, this analysis considers multiple scenarios for low usage and high usage conditions with varying PV system sizes and corresponding CAPEX, as summarized  
\begin{table}
\begin{tabular}{c c c c} \hline \hline
**Prices** & **Average of 2021** & **2024** & **2024 (Without subsidy)** \\ \hline Import Price (EUR/kWh) & 0.2251 & 0.2731 & 0.3878 \\ Export Price (EUR/kWh) & 0.1421 & 0.2946 & 0.2946 \\ Buyback Price (EUR/kWh) & 0.0635 & 0.0771 & 0.0836 \\ Inflation Rate (\%) & 2.76 & 3.48 \\ \hline \hline \end{tabular}
\end{table}
Table 6: Electricity Prices and Inflation Rates of Austria (source Eurostat ([[https://ec.europa.eu/eurostat/databrowser/view/nrg_pc_204/default/table?lang=en](https://ec.europa.eu/eurostat/databrowser/view/nrg_pc_204/default/table?lang=en)]([https://ec.europa.eu/eurostat/databrowser/view/nrg_pc_204/default/table?lang=en](https://ec.europa.eu/eurostat/databrowser/view/nrg_pc_204/default/table?lang=en)) (accessed on 16 October 2024))).  
in Table 7. As the exact cost of the PV system installation was not covered within the AUORAL project, the cost was estimated based on national benchmarks for PV system prices in Austria. These benchmarks were sourced from the International Energy Agency Photovoltaic Power Systems Programme (IEA-PVPS) for 2021 and 2023 [57; 58; 59].