A prefeasibility study involves conducting an initial assessment to determine a project’s viability before proceeding with a full feasibility study. It includes evaluating technical aspects like energy resource availability and site suitability, as well as conducting a preliminary market analysis to assess potential demand and competition. A financial evaluation estimates costs, revenue streams, and potential returns on investment, while a risk assessment identifies potential challenges and develops mitigation strategies. An environmental impact assessment examines potential environmental concerns and regulatory requirements. A prefeasibility study also outlines a project timeline and implementation plan.