Project Finance Model for Determining the “Best New Entrant” Power Generation Technology

January 16th, 2010 1 Comment   Posted in financial models

Project Finance Model for Determining the “Best New Entrant” Power Generation Technology

In proposing a new power plant project to address a supply deficiency problem in a given grid, it is important for the project proponent and developer to demonstrate to the investors as well as to the regulator and end-users that the proposed power generation technology solution is the “best new entrant” that will address the power deficiency and provide the cheapest, reliable and stable electricity service. More »

Available Project Finance Models with CDM and Renewable Energy Law Incentives

January 15th, 2010 No Comments   Posted in financial models

Available Project Finance Models with CDM and Renewable Energy Law Incentives

I just finished polishing all my project finance models for the following power generation technologies and are now available for actual runs by project developers, researchers and individuals doing business development.  Using the models below will allow user to determine as quickly as possible the “best new entrant” technology applicable to a particular location given the fuel and energy resource available and the electricity tariff prevailing in the area. More »

Project Finance Model for Generic Diesel & RE Hybrid Power Plant

January 14th, 2010 3 Comments   Posted in financial models

Project Finance Model for Generic Diesel & RE Hybrid Power Plant

The determination of optimal combination of diesel and renewable energy (RE) hybrid power plant is sometimes a difficult exercise for the project developer and EPC contractor.

After an inventory of the available fuel and RE resources in a particular location and application, the next step is to determine thru project finance modeling the economics of a stand alone diesel generator power plant (usually a compression ignition diesel engine running on expensive diesel fuel, gas oil, light fuel oil and bunker fuel oil), and considering a hybrid configuration using biomass resources (biomass gasification with diesel engine, landfill methane with diesel engine, sewage digestion or biogas with diesel engine, municipal solid waste with steam turbine generator, biomass direct combustion with steam turbine generator, biomass co-firing with fossil coal and oil, mini-hydro, wind farm and solar PV).

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How to Optimize Power Plant Design and Configuration (technology, capacity, efficiency, location)

January 11th, 2010 2 Comments   Posted in financial models

How to Optimize Power Plant Design and Configuration (technology, capacity, efficiency, location) – see download file for input data

Optimizing the overall project concept during the plant feasibility study and detailed engineering study is a common problem faced by project developers and EPC contractors.  The question commonly asked by project owners from project developers and designers are:

(1) What engine/manufacturer should be considered (e.g. Siemens, Westinghouse, General Electric, Mitsubishi, Alstom, etc)? More »

Project Finance Model for Incremental Economic Analysis with CDM

January 11th, 2010 2 Comments   Posted in financial models

Project Finance Model for Incremental Economic Analysis with CDM

Incremental economic analysis is the fundamental method of analysis in comparing two or more competing alternatives in order to determine the feasibility of undertaking incremental investments considering the incremental benefits that may be derived.  It is useful in analyzing equipment up-grading, replacement, systems improvement and fuel switching.

During implementation of a project feasibility study for a natural gas pipeline that will serve an anchor load 250-500 mw natural gas-fired combined cycle gas turbine (CCGT), it was felt that additional market for the excess Malampaya natural gas (300 mw surplus plus banked gas for sale) needs to be developed to improve the economics of the pipeline. More »

Project Finance Model for Hybrid Power Plant / Multi-fuel System with CDM

January 9th, 2010 Comments Off on Project Finance Model for Hybrid Power Plant / Multi-fuel System with CDM Posted in financial models

Project Finance Model for Hybrid Power Plant / Multi-fuel System with CDM

During implementation of a project feasibility study for a natural gas pipeline that will serve an anchor load 250-500 mw natural gas-fired combined cycle gas turbine (CCGT), it was felt that additional market for the excess Malampaya natural gas (300 mw surplus plus banked gas for sale) needs to be developed to improve the economics of the pipeline.

Doing a market, technical and feasibility study for this end-use conversion economics will thus entail developing a robust project finance model that is versatile enought to handle conversion of existing power generation and steam/process heat technologies (coal fired, bunker fired, diesel fired diesel electric generators, steam and process heat equipment, refrigeration) to natural gas firing.

The author, an energy technology and business development consultant, has prepared an Incremental Economics Conversion Model for comparing a base case (existing coal-fired or oil fired generation, process heat, refrigeration and air conditioning equipment) versus a more energy efficient, less polluting and cheaper to operate natural gas-fired equipment. More »

Project Finance Models for Power Plants with Carbon Credits under CDM (download file)

January 4th, 2010 2 Comments   Posted in financial models

Project Finance Models for Power Plants with Carbon Credits under CDM (download file)

Due to worldwide interest in carbon emission reduction credits thru the clean development mechanishm (CDM) of the Kyoto Protocol to encourage renewable and energy efficiency improvement in power generation to reduce carbon emissions and mitigate global warming, I am issuing another model update for January 2009.  I also made some changes to working capital and all-in project cost estimation and loan amortization calculations.
Also due to numerous inquiries and tremendous interest, the deadline has been extend up to 31 January 2010.  Order now to get 70% discount on any project finance model of your choice.  This 2010 version now includes carbon emission reduction credits under the Clean Development Mechanism (CDM) of the Kyoto Protocol. It provides for one time cost for consultancy services and registration to the CDM Executive Board and annual carbon emission reduction credits net of annual fees for monitoring by local consultants and Executive Board.

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