There is nowhere in the PRMS which requires the project NPV to be positive to satisfy the commerciality test and for good reason – who chooses the discount factor? By changing the DF I can make anything positive.
2.1.2. states “ A reasonable assessment of future economics....
Economics as defined in the Glossary, only refers to the operating cashflow = income – opex CAPEX is not referred at all!!!
Look at the following example: Coal miner’s gas project is NPV negative but the operating cashflow is positive. Income = Gas sales + Subsidy. They have reserves.