This document provides an overview of a proposed 660 MW coal-fired thermal power plant project in India. It discusses the company profile, objectives and scope of the project, financial modelling conducted, risk analysis, and SWOT analysis. The financial model examines factors that could impact project costs and revenues in order to determine feasibility. Key risks include potential cost overruns, fuel supply issues, and selling a portion of power on the merchant market at lower rates. The conclusion is that the project is viable and will help meet India's growing power demand.
Assessment of Risks in International EPC Projects Reference Current Global Ec...HIMADRI BANERJI
Assessment of Risks in the present global economic environment for projects and especially projects that deal with EPC contracting for large scale infrastructure. A review of some of the major projects that have changed the rues of the game for Project Risk Assessment, management and mitigation forms a significant part of the prentation
Small Power Generation Plant solution (SPGP) continues to be an important segment of Electrical Energy production. The increasing demand for energy has to be satisfied while considering the impact on the global environment. SPGP plays an important role in industrial applications. Small size cogeneration plants sited close to industrial energy consumption can deliver power with high fuel efficiency and low emissions, and with modest space requirements. CRDenergy can offer to its customers complete solutions from feasibility studies to the actual turnkey cogeneration plant construction, aftermarket services and customized financial solutions. We are using oil and gas industrial port city Port Harcourt city (PH) in Nigeria, African largest economy as a case study, with its complexity, it reflects the shortage of power or barriers and opportunity encountered in every growing economy . Avoiding the structural complexity of building large scale power plant; SPGP offers a flexible, realiable, close to consumer option that can be multipled in multiple units and easily transformed to negbourhood service station in industrial hubs.
Conference on Acquisition Opportunities for Power Generation Assets in India ...Infraline Energy
Conference on "Acquisition Opportunities for Power Generation Assets in India" scheduled on January 30, 2014, Hotel Le Meridien, New Delhi. This event is being jointly organized by InfralineEnergy & Bureaucracy Today.
The country thus has large number of power projects crippled by a lack of fuel linkages or set back in fuel linkages, pricing of imported coals or coals sourced from linked overseas mining projects,, problems with statutory approvals, project financing issues and impacts
The Conference has been designed and launched with above mentioned objectives, challenges and would provide a platform to deliberate on key aspects leading to possible completion and commissioning of this stranded capacity within reasonable time.
Equity Market Reactions based on Company’s Financial StrategiesRUPANJAN NAYAK
Equity Market Reactions based on Company’s Financial Strategies on a POWER UTILITY COMPANY: CESC PVT LTD.
1. Contains equity stock market reactions based on company financial restructuring strategies like: following a lean business model, layoff and retrenchments, going full digital from offline business model etc.
2. The impact on the shareholders due to diversification.
3. Impact on the shareholders due to company strategic restructuring.
Indian Energy Market Opportunities for US CompaniesIVG Partners
With a generation capacity of 141 GW, India has the fifth largest electricity generation capacity in the world . India’s Transmission & Distribution (T&D) network of 6.6 million circuit km is the third largest in the world.
According to the Integrated Energy Policy report released by the Indian government, estimated energy requirements will reach approximately 950,000 MW in the year 2030. The government has been promoting public - private partnerships to meet the estimated $1.2 trillion investment required over the next 25 years to provide electricity to consumers at an affordable cost. The U.S. continues to be one of the largest exporters of generation and transmission equipment to India along with Germany, Japan and the U.K.
Given these conditions, there are excellent prospects for North American companies in energy efficient compressors, boilers, turbines, combined cycle power production, heat recovery technology, process control systems, hydraulics, cogeneration equipment, meters, sensors/ controls, heating/cooling (HVAC) systems, lighting units, pumps, appliances, steam systems/generators, and related IT and energy services. As the demand for Transmission & Distribution equipment is expected to grow rapidly, North American power equipment suppliers will also find significant sales opportunities in power distribution transformers, high voltage power cables, relays, conductors, capacitors, circuit breakers and related equipments.
Assessment of Risks in International EPC Projects Reference Current Global Ec...HIMADRI BANERJI
Assessment of Risks in the present global economic environment for projects and especially projects that deal with EPC contracting for large scale infrastructure. A review of some of the major projects that have changed the rues of the game for Project Risk Assessment, management and mitigation forms a significant part of the prentation
Small Power Generation Plant solution (SPGP) continues to be an important segment of Electrical Energy production. The increasing demand for energy has to be satisfied while considering the impact on the global environment. SPGP plays an important role in industrial applications. Small size cogeneration plants sited close to industrial energy consumption can deliver power with high fuel efficiency and low emissions, and with modest space requirements. CRDenergy can offer to its customers complete solutions from feasibility studies to the actual turnkey cogeneration plant construction, aftermarket services and customized financial solutions. We are using oil and gas industrial port city Port Harcourt city (PH) in Nigeria, African largest economy as a case study, with its complexity, it reflects the shortage of power or barriers and opportunity encountered in every growing economy . Avoiding the structural complexity of building large scale power plant; SPGP offers a flexible, realiable, close to consumer option that can be multipled in multiple units and easily transformed to negbourhood service station in industrial hubs.
Conference on Acquisition Opportunities for Power Generation Assets in India ...Infraline Energy
Conference on "Acquisition Opportunities for Power Generation Assets in India" scheduled on January 30, 2014, Hotel Le Meridien, New Delhi. This event is being jointly organized by InfralineEnergy & Bureaucracy Today.
The country thus has large number of power projects crippled by a lack of fuel linkages or set back in fuel linkages, pricing of imported coals or coals sourced from linked overseas mining projects,, problems with statutory approvals, project financing issues and impacts
The Conference has been designed and launched with above mentioned objectives, challenges and would provide a platform to deliberate on key aspects leading to possible completion and commissioning of this stranded capacity within reasonable time.
Equity Market Reactions based on Company’s Financial StrategiesRUPANJAN NAYAK
Equity Market Reactions based on Company’s Financial Strategies on a POWER UTILITY COMPANY: CESC PVT LTD.
1. Contains equity stock market reactions based on company financial restructuring strategies like: following a lean business model, layoff and retrenchments, going full digital from offline business model etc.
2. The impact on the shareholders due to diversification.
3. Impact on the shareholders due to company strategic restructuring.
Indian Energy Market Opportunities for US CompaniesIVG Partners
With a generation capacity of 141 GW, India has the fifth largest electricity generation capacity in the world . India’s Transmission & Distribution (T&D) network of 6.6 million circuit km is the third largest in the world.
According to the Integrated Energy Policy report released by the Indian government, estimated energy requirements will reach approximately 950,000 MW in the year 2030. The government has been promoting public - private partnerships to meet the estimated $1.2 trillion investment required over the next 25 years to provide electricity to consumers at an affordable cost. The U.S. continues to be one of the largest exporters of generation and transmission equipment to India along with Germany, Japan and the U.K.
Given these conditions, there are excellent prospects for North American companies in energy efficient compressors, boilers, turbines, combined cycle power production, heat recovery technology, process control systems, hydraulics, cogeneration equipment, meters, sensors/ controls, heating/cooling (HVAC) systems, lighting units, pumps, appliances, steam systems/generators, and related IT and energy services. As the demand for Transmission & Distribution equipment is expected to grow rapidly, North American power equipment suppliers will also find significant sales opportunities in power distribution transformers, high voltage power cables, relays, conductors, capacitors, circuit breakers and related equipments.
StocksInsights Hidden Treasure November 2015 pick - Techno ElectricStocksInsights
In this package, you get high potential Multibagger Stock every month with the best possible return ratio. Our intention is to help you discover the Hidden-Treasures in the market which have the potential to generate multi-fold returns in the future without taking extra risks. Our key objective is to pick stocks which can Compound Sustainably at a healthy rate for the next 3-5 years and create enormous wealth (3-4X Returns). We like to select companies with strong Competitive Advantages and moats are quoting at a discount to their intrinsic value.
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World Bank Group’s Support to Renewable Energy DevelopmentMirzo Ibragimov
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StocksInsights Hidden Treasure November 2015 pick - Techno ElectricStocksInsights
In this package, you get high potential Multibagger Stock every month with the best possible return ratio. Our intention is to help you discover the Hidden-Treasures in the market which have the potential to generate multi-fold returns in the future without taking extra risks. Our key objective is to pick stocks which can Compound Sustainably at a healthy rate for the next 3-5 years and create enormous wealth (3-4X Returns). We like to select companies with strong Competitive Advantages and moats are quoting at a discount to their intrinsic value.
Hidden Treasures Package is suitable for whom?
– Investors looking for sustainable long term returns in good stocks.
– Has a holding period of minimum 1 Year and is willing to stomach volatility.
– Investment capital of minimum INR 2 Lakh (or) if your saving is over Rs 10K/month.
– For those who do not want to gamble in short term trade and burn their fingers.
Climargy Innovative Energy Efficiency Financing through ESCO Project Aggregat...OECD Environment
Third OECD-DOE Workshop: Unlocking finance and investment in offshore wind power and energy efficiency in public buildings in the Philippines, 6-7 March 2024, Makati, Philippines
This is my final project submission for the course ' Unlocking investment and finance in emerging markets and developing market economies' course by World Bank
World Bank Group’s Support to Renewable Energy DevelopmentMirzo Ibragimov
On 5-6 December, Tashkent hosted a workshop on renewable energy (RE) policy development jointly organized by the Government of Uzbekistan and the World Bank Group (WBG) in partnership with the International Renewable Energy Agency (IRENA). The presentation was delivered during the above-mentioned event.
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Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
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The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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3. Introduction
Electricity plays a vital role in economic development of any
country.
The demand of electricity is enormous and growing steadily
when we consider countries like India.
In India, since independence there is a steep increase in
capacity of electricity generation.
Currently, India stands as the fifth largest electricity generation
capacity in the world pegged at 3,88,134 MW.
In India, Power is primarily generated from thermal, nuclear
fuels, hydro energy and renewable sources.
Inadequate supply of domestic coal, domestic natural gas, land
availability, etc. are the major issues in the Indian power sector.
Government has encouraged private sector players to
participate in power sector through PPP mode with up to 100%
foreign equity under automatic route.
The State Government should be proactive in promoting
distribution channels to bring down the decreasing aggregate
technical & commercial losses.
4. Company Profile
Power Finance Corporation Ltd. was incorporated in1986 as
a Development Public Financial Institution.
It is dedicated to Power Sector. It is wholly owned by
Government of India.
It provides financial assistance to all types of power projects
i.e. Generation, R&M, Transmission, Distribution, System
Improvement, etc.
It's mission is to excel as a pivotal developmental financial
institution in the power sector committed to the integrated
development of the power and associated sectors by
channelling the resources and providing financial,
technological and managerial services for ensuring the
development of economic, reliable and efficient systems and
institutions.
It had been awarded with Sovereign Rating by International
Rating Agencies and also been awarded with the highest
safety rating by Accredited Rating Agencies in India.
5. It’s main objective is to rise the resources from international
and domestic sources at the competitive rate and terms and
conditions, to act as catalyst to bring institutional, managerial,
operational and financial improvement in the functioning of
the state power utilities, etc.
State Electricity Boards, State Power Utilities, State
Electricity/Power Department, Central Power Utilities, etc. are
the clients of PFC.
It offers various range of services i.e. Fund Based Service
such as Rupee Term Loan, Foreign Currency Term Loan,
Buyer’s Line of Credit, etc. and Non-Fund Based Services
such as Guarantees and Exchange Risk Management.
It is providing financial assistance to reform-minded States
under relaxed lending criteria/exposure limit norms.
It also provides technical/financial assistance to State
Govt./Power Utilities for structural reforms of the State Power
Sector.
6. Objective of Project
The objective of the Project Report is:
Finding out the factors affecting a project’s capital and
operational expenditure which directly impact on the cash
outlay and revenue generation of the project. Thus,
performing Project Appraisal of a 660 MW Coal Based Super-
critical Thermal Power Plant.
A financial model of a 660 MW Coal Based Super-critical
Thermal Power Project so as to study the effect of above
factors on tariff and revenue flows.
To find out probable values of IRR, DSCR among other ratios
using the financial model to study the feasibility and
attractiveness of a 660 MW Coal Based Super- critical
Thermal Project.
7. Scope of Project
Scope of project highlights installation, commissioning,
operation and maintenance of 660 MW coal fired Thermal
Power Plant and associated systems.
Indian Power Sector wants to increase the level of the
installed capacity to meet the growing demand. This project
provides us the factors that will affect the project cost and
thus have an impact on the total investment and operational
expenses of the project.
The assessment and analysis of these factors will help in
determining the project cost, the associated risks and the
tariff for supply from the project and thus the revenue
generations and cash flows.
8. Project Appraisal
The Guiding Principal for Project Appraisal at PFC is “Offering
credit is an operation fraught with risk. Before offering credit
to an organization, its financial health must be analyzed.
Credit should be disbursed only after ascertaining satisfactory
financial performance. Based on the financial health of an
organization, PFC assigns integrated ratings. These credit
ratings are used to fix the interest rate, exposure limit and
security criteria.”
The major criteria's to be fulfilled for obtaining any project
financing under PFC are as follows:
I. Entity Eligibility Criteria
II. Statutory Clearances
III. Cost Estimate
IV. Project Cost-Benefit Analysis
V. Project Analysis
9. Financial Modelling
In every project finance deal, where everyone’s financial security
based on the future performance of a new undertaking, a
thorough analysis of the project’s finances under a arrange of
assumptions is prerequisite for arranging debt and equity
funding, financial model play a critical role in decision-making.
Determining the scope of the project and the related EPC cost,
O&M cost through the concession period, assessment of tariff in
order to determine revenue generation potential for the project,
calculating the fixed and variable cost relating to the project, etc.
are the steps taken for designing a financial model.
The purpose of Financial Modelling provides a basic analysis,
generally rests on raw, preliminary data and simplified financing
assumptions, to establish weather a given project is worth
pursuing further. The required outcomes may be: -
I. Basic Project IRR
II. Debt Service Coverage Ratios and other debt ratios
III. Developing a financial structure that is suitable for the
project
10. Risk Analysis
The following risk involved in the different stages of the
construction of a Project are: -
Pre Construction Stage
1. Grant of Approvals/Clearances
2. Finalization of Contracts
3. Procurement of Land
Construction Stage
1. Cost Estimate
2. Cost increase and Price Escalation
3. Completion Delay and Equipment Supply Delay
4. Equity Infusion
12. SWOT Analysis
Strength
The Project has long term fuel supply agreement with Coal
India Limited of Coal for use in the Project.
The Project is located in severe power shortage region.
The Company has already acquired 600 Ha land which is
adequate for the main power plant block.
The Project is rested on Super Critical Technology which is
expected to provide efficiency gains to the Company resulting
in lower cost of generation.
Weakness
Company shall be selling 30% of power on Merchant Basis
and may get lower return than the levelized cost of
generation.
Environment and Forest Clearances still to be obtained.
13. Opportunity
The Electricity Act 2003 and subsequent National Electricity
Policy and Tariff Policy have opened up several opportunities
for the power sector by allowing the IPPs and captive power
producers open access to transmission system, thus allowing
them to bypass the SEBs and sell power directly to bulk
consumers.
With the advent of the era of competitive bidding for tariff for
procurement of power, the new capacities would not be
subject to regulated tariff and regulated return of equity and
thus provide investment opportunities to Developers in the
power sector where returns would be market determined.
There is huge power deficit in the country and the demand
supply situation in the country is expected to remain favorable
to power generators for the next 8/10 years at least. This
presents huge opportunities in the power sector for power
generators.
Threats
A part of power generated will be sold on Merchant basis and
may get lower return than the levelized cost of generation.
Fuel supply agreement with Coal India Limited may result in
delay.
14. Limitation
Some of the major limitations and issues regarding the project
appraisal are as follows: -
The rate of escalation is taken as constant over the life of the
project i.e. about 25 years.
Cash flows not really known until the project is in service.
Value of debt and equity driven by cash flow.
Measure the value of different securities supported by project
cash flow.
Risk analysis depends on contracts used to allocate risk to
different parties.
15. Conclusion
Company has proposed to set-up 660 MW Coal fired Thermal Power
Project based on Super Critical Technology. State Government has
supported this Project and has issued letter of support to provide all kind of
administrative support required.
The Company has already acquired the land required for the Main plant
from Industrial Development Corporation and has made the requisite
payments. The remaining required land has been identified and the
process of acquisition is underway.
The Proposed Project will be implemented by way of a turnkey
Engineering, Procurement and Construction (EPC) contract to be awarded
on Competitive Bidding Process.
The Project requires about 3771700 TPA coal based on average GCV of
3400 kcal/kg and PLF of 85%. The company made an FSA with CIL for the
Proposed Project. The Project will require about 150 cubic meter per hour
make-up water during operation. A raw water reservoir of 25200m3
capacity to hold 7 days requirement for plant requirement of water will be
constructed at the plant site.
16. Of the total 462 MW of power is proposed to be sold as PPA as per CERC
tariff. Balance 198 MW will be sold on Merchant basis at Rs 3.5 per unit
with an escalation of 3% p.a. Considering the cost of generation of Rs.
2.475 per unit, company does not envisage any difficulties in selling the
power through merchant route. Power Evacuation will be through two
double circuit 400 KV transmission lines connecting the Project to the
PGCIL substation and State TRANSCO substation.