Gas Turbine and CCGT LevelizedTariff, Levelized Cost and Financial Model
Gas Turbine and CCGT LevelizedTariff, Levelized Cost and Financial Model
The following is a snippet of my state-of-the-art project finance model for calculating levelized tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.
| PROJECT FINANCE MODEL : Simple Cycle Gas Turbine | Name | Simple Cycle GT | ||||
| (C) Copyright 2009 by Marcial T. Ocampo (November 2009) | ||||||
| INSTRUCTIONS | mars_ocampo@yahoo.com | |||||
| (This example is in PhP Thousand, except for the unit prices which are in PhP/kWh) | energydataexpert@gmail.com | |||||
| Year 0 reflects the starting assumptions, which will be applicable starting in year 1. |
Select NPV to use (1) |
6.2373 |
NPV |
IRR |
Payback |
|
| Blue cells must be filled out by the user. |
NPV-ROI |
0 |
(990,417) |
4.59% |
31.49 |
|
| Escalate fuel, lubes, tariff and O&M costs? (1=yes, 0=no) |
0 |
NPV-ROE |
1 |
0 |
15.00% |
9.77 |
| CALCULATION OF GROSS OPERATING MARGIN |
NPV-FC |
0 |
(50,350) |
13.66% |
10.04 |
|
|
NPV-FC discounted |
0 |
(132,495) |
10.96% |
10.54 |
||
| Year |
|
used |
0.00 |
2009 |
2010 |
2011 |
| Days Per Year |
|
|
|
365 |
365 |
365 |
| Hours Per Day |
24 |
|
|
24 |
24 |
24 |
| Plant Operation |
365 |
Year |
0 |
1 |
2 |
|
| Overhaul Cycle |
0 |
1 |
2 |
|||
| Capacity Degradation | ||||||
| Normal, % p.a. |
1.50% |
1.0000 |
1.0150 |
1.0302 |
||
| Overhaul, % p.a. |
-5.25% |
1.50% |
1.50% |
|||
| Overhaul Cycle, yr |
5 |
|||||
| Recovery, % |
70.00% |
|||||
| Select Manufacturer/Engine Model: |
MW |
Heat Rate, kJ / kWh |
Efficiency, % |
Cost, $/kW |
Variable O&M |
Fixed O&M |
| Simple Gas Turbine Aero Derivative GT |
35.000 |
9,142 |
39.38% |
325 |
0.005 |
0.040 |
| Recuperated GT |
3.200 |
8,889 |
40.50% |
400 |
0.005 |
0.040 |
| CHAT 11 MW GT |
11.000 |
8,090 |
44.50% |
800 |
0.005 |
0.040 |
| CHAT 300 MW GT |
300.000 |
6,581 |
54.70% |
375 |
0.005 |
0.040 |
| Heavy Frame GT |
200.000 |
10,286 |
35.00% |
560 |
0.005 |
0.040 |
| SGT6-5000F (Siemens Westinghouse) – CCGT |
264.061 |
6611 |
54.45% |
831.46 |
0.002 |
0.150 |
| Plant Rated Capacity, MW |
35.000 |
9,142 |
39.38% |
325.00 |
35.000 |
35.000 |
| Dependable Capacity, MW |
34.483 |
33.973 |
||||
| Plant Availability | ||||||
| Calendar Days |
365.24 |
365 |
365 |
|||
| Total Period Hours |
24 |
8760 |
8760 |
|||
| Planned Overhaul, days (4 wks) |
28 |
|
|
|||
| Regular Maintenance, days (2 wks) |
14 |
14 |
14 |
|||
| Economic S/D, % of CD |
0.20% |
0.73 |
0.73 |
|||
| Deactivated S/D – External, % of CD |
0.50% |
1.83 |
1.83 |
|||
| Total Unforced Outage, days |
16.56 |
16.56 |
||||
| Forced Outage – Internal, % of CD |
6.00% |
21.90 |
21.90 |
|||
| Total Outage, days |
41.27 |
38.46 |
38.46 |
|||
| Total Operating Hours |
7,775 |
7,837 |
7,837 |
|||
| Plant Statistics | ||||||
| Outage Rate = FO*24/ (FO*24+TOH) |
6.34% |
6.29% |
6.29% |
|||
| Availability = TOH/PH |
88.70% |
89.46% |
89.46% |
|||
| Equivalent Availability | ||||||
|
88.76% |
87.45% |
|||||
| Reliability = 1-OR |
93.66% |
93.71% |
93.71% |
|||
| Generation and Capacity Factor | ||||||
| Load Factor, % of DC |
93.00% |
93.00% |
93.00% |
|||
| Potential Generation = DC*LF*TOH | MWh |
251,327 |
247,613 |
|||
| Rated Generation = RC*PH | MWh |
306,600 |
306,600 |
|||
| Capacity Factor = PG / RG |
76.57% |
81.97% |
80.76% |
|||
| Plant Heat Rate |
Typical |
Actual GT Engine |
||||
| Gas Turbine Output (1 / 3) |
40.00% |
|||||
| Steam Turbine Input (2 / 3) |
|
|||||
| Boiler Efficiency at 1% cont. BD |
|
|||||
| Steam Turbine Efficiency |
|
|||||
| Mechanical Drive / Clutch Efficiency |
99.00% |
|||||
| Generator Efficiency |
96.00% |
|||||
| Overall Efficiency=(GT+ST*BE*STE)*ME*GE |
38.02% |
39.38% |
||||
| Plant Heat Rate at 100% eff. |
3412.12822 |
|||||
| Plant Heat Rate, Btu / kWh = 3412/ OE |
8,976 |
8,665 |
|
8,665 |
8,665 |
|
| Heat Rate (Efficiency) Degradation |
|
|||||
| Normal, % p.a. |
1.50% |
|
1.0000 |
1.0150 |
1.0302 |
|
| Overhaul, % p.a. |
-5.25% |
1.50% |
1.50% |
|||
| Overhaul Cycle, yr |
5 |
|||||
| Recovery, % |
70.00% |
|||||
| Actual Plant Heat Rate, Btu/kWh |
|
8,795 |
8,927 |
|||
| Actual Overall Efficiency, % of fuel GHV |
38.80% |
38.22% |
||||
| Net Electricity Sales, MWh | ||||||
| Potential Generation |
251,327 |
247,613 |
||||
| Step-up Transformer Loss (Switchyard), MWh |
1.00% |
1.00% |
1.00% |
|||
| Generation at Plant Fence |
248,814 |
245,137 |
||||
| Transmission Line Losses, MWh |
2.00% |
2.00% |
2.00% |
|||
| Net Electricity Sales to Customer |
243,838 |
240,234 |
||||
| Other Losses (non-technical, pilferage), MWh |
0.00% |
0.00% |
0.00% |
|||
| Electricity sales to the network (MWh) |
243,838 |
240,234 |
||||
| Annual increase of the volume, % p.a. |
0.0% |
-1.5% |
||||
| Fuel Consumption | ||||||
| Gross Generation (Potential Generation), MWh |
251,327 |
247,613 |
||||
| Plant Heat Rate, Btu/kWh |
8,795 |
8,927 |
||||
| Total Energy Input to be supplied by fuel, Million Btu |
2,210,476 |
2,210,476 |
||||
| Energy Supplied by each fuel, Million Btu: |
GHV, Btu/lb |
NHV, Btu/lb |
GHV / NHV |
|||
| Natural Gas (Malampaya Gas) – main fuel |
22,129 |
20,249 |
1.093 |
2,099,952 |
2,099,952 |
|
| Diesel Oil – backup fuel (gas pipeline downtime) |
19,650 |
18,453 |
1.065 |
110,524 |
110,524 |
|
| Low Sulfur Fuel Oil (LSFO – 1% S) – boiler fuel |
18,400 |
17,449 |
1.055 |
88,419 |
88,419 |
|
| Bunker Fuel Oil (BFO – 3% S) – boiler fuel |
19,670 |
18,565 |
1.060 |
22,105 |
22,105 |
|
| Fuel Consumption, Million Liters: |
kg / Liter |
GHV, Btu/Liter |
||||
| Natural Gas (Malampaya Gas) – main fuel |
1.05506 |
kJ / Btu |
GJ (Million kJ) |
2,215,575 |
2,215,575 |
|
| Diesel Oil – backup fuel |
0.8448 |
36,597 |
Million Liters |
3.020 |
3.020 |
|
| Low Sulfur Fuel Oil (LSFO – 1% S) – boiler fuel |
0.9659 |
39,181 |
Million Liters |
2.257 |
2.257 |
|
| Bunker Fuel Oil (BFO – 3% S) – boiler fuel |
0.8916 |
38,664 |
Million Liters |
0.572 |
0.572 |
|
| Total Million Liters |
|
|
5.848 |
5.848 |
||
| Specific Fuel Consumption, Liters / kWh |
|
|
0.023 |
0.024 |
||
| Fuel Cost, Million PhP: |
PhP / Liter 2009 |
Escalation |
$ / Million Btu |
|||
| Natural Gas (Malampaya Gas) – main fuel, 8.628 $/GJ |
418.11 |
0.00% |
PhP / GJ |
9.10 |
926.361 |
926.361 |
| Diesel Oil – backup fuel |
30.00 |
0.00% |
PhP / Liter |
16.92 |
90.601 |
90.601 |
| Low Sulfur Fuel Oil (LSFO – 1% S) – boiler fuel |
23.24 |
0.00% |
PhP / Liter |
12.24 |
52.437 |
52.437 |
| Bunker Fuel Oil (BFO – 3% S) – boiler fuel |
22.51 |
0.00% |
PhP / Liter |
12.01 |
12.867 |
12.867 |
| Total Fuel Cost, Million PhP |
|
|
155.905 |
155.905 |
||
| Average fuel cost, PhP/Liter |
26.66 |
|
26.658 |
26.658 |
||
| Average fuel cost escalation, % p.a. |
|
0.00% |
0.0% |
0.0% |
||
| Lube Oil Consumption | ||||||
| Normal, % p.a. |
1.50% |
|
1.0000 |
1.0150 |
1.0302 |
|
| Overhaul, % p.a. |
-5.25% |
1.50% |
1.50% |
|||
| Overhaul Cycle, yr |
5 |
|||||
| Recovery, % |
70.00% |
|||||
| Ideal Lube Oil Consumption, g/kWh |
0.254 |
0.254 |
0.254 |
|||
| Actual Lube Oil Consumption, g/kWh |
0.257 |
0.261 |
||||
| Lube Oil Consumption, Million Liters |
0.8500 |
kg/Liter |
0.076 |
0.076 |
||
| Lube Oil Cost, Million PhP |
149.87 |
0.00% |
11.402 |
11.402 |
||
| Average lube oil cost, PhP/Liter |
|
149.871 |
149.871 |
|||
| Average lube oil escalation, % p.a. |
|
0.00% |
0.0% |
0.0% |
||
| A) Operating income: ’000 PhP |
365 |
Year |
0 |
1 |
2 |
|
| Electric tariff for sales to the network (PhP/kWh) |
6.2373 |
6.2373 |
6.2373 |
|||
| Annual increase of the tariff, % p.a. |
0.00% |
0.00% |
0.00% |
|||
| Income from sales to DU, ’000 PhP |
1,064,614 |
1,048,881 |
||||
| Electricity sales to DU, MWh |
70.00% |
of sales |
170,686 |
168,164 |
||
| Electricity tariff to DU, PhP/kWh |
100.00% |
6.2373 |
discount tariff (direct customers) |
6.2373 |
6.2373 |
|
| Income from sales to NPC, ’000 PhP |
304,176 |
299,680 |
||||
| Electricity sales to NPC, MWh |
20.00% |
of sales |
48,768 |
48,047 |
||
| Electricity tariff to NPC, PhP/kWh |
100.00% |
6.2373 |
reference tariff (average grid) |
6.2373 |
6.2373 |
|
| Income from sales to WESM, ’000 PhP |
152,088 |
149,840 |
||||
| Electricity sales to WESM, MWh |
10.00% |
of sales |
24,384 |
24,023 |
||
| Electricity tariff to WESM, PhP/kWh |
100.00% |
6.2373 |
WESM tariff (wholesale spot market) |
6.2373 |
6.2373 |
|
| TOTAL OPERATING INCOME |
1,520,878 |
1,498,402 |
||||
| Annual increase in Operating Income |
0.0% |
-1.5% |
||||
| Total electricity sales to DU, NPC, and WESM, MWh |
243,838 |
240,234 |
||||
| Average Electricity Tariff, PhP/kWh |
6.2373 |
6.2373 |
||||
| Annual increase in Electricity Tariff |
0.00% |
0.0% |
0.0% |
|||
| B) Expenses: ’000 PhP |
Year |
0 |
1 |
2 |
||
| Consumption of natural gas fuel, ’000 GJ |
2,216 |
2,216 |
||||
| Annual increase of the volume |
|
|
0.0% |
0.0% |
||
| Price of natural gas fuel (PhP/GJ) |
|
418.113 |
418.113 |
|||
| Annual increase of the price |
|
|
|
0.0% |
0.0% |
|
| Total Natural Gas Fuel Cost |
|
|
926,361 |
926,361 |
||
| Consumption volume of fuel, ’000 liters |
5,848 |
5,848 |
||||
| Annual increase of the volume |
|
|
0.0% |
0.0% |
||
| Price of liquid fuel (PhP/Liter) |
|
26.658 |
26.658 |
|||
| Annual increase of the price |
|
0.0% |
0.0% |
|||
| Total Liquid Fuel Costs |
Escalation |
months |
working capital |
155,905 |
155,905 |
|
| Total Fuel Costs |
2 |
180,378 | 1,082,265 |
1,082,265 |
1,082,265 |
|
| Annual increase of fuel costs |
|
0.0% |
0.0% |
|||
| Expenses from lube purchase |
2 |
1,900 | 11,402 |
11,402 |
11,402 |
|
| Purchase of chemical materials |
0.00% |
2 |
3,802 | 22,813 |
22,813 |
22,476 |
| Utilities (electricity, water) |
0.00% |
2 |
3,802 | 22,813 |
22,813 |
22,476 |
| DOE 1-04 (0.01 PhP/kWh sold) |
|
2 |
406 | 2,438 |
2,438 |
2,402 |
| Total Variable O&M |
|
|
9,911 |
59,467 |
58,756 |
|
| Annual increase of variable O&M |
|
-0.46% |
0.0% |
-1.2% |
||
| Variable O&M, $/kWh |
48.46 |
0.00494 |
0.00488 |
0.00490 |
||
|
|
|
|||||
| Maintenance of the installation |
0.00% |
2 |
5,070 | 30,418 |
30,418 |
29,968 |
| Personnel expense |
0.00% |
2 |
3,042 | 18,251 |
18,251 |
17,981 |
| Land lease, rent |
0.00% |
2 |
2,535 | 15,209 |
15,209 |
14,984 |
| Other services |
0.00% |
2 |
1,267 | 7,604 |
7,604 |
7,492 |
| Total Fixed O&M |
11,914 |
71,481 |
70,425 |
|||
| Annual increase of fixed O&M |
-0.53% |
0.0% |
-1.5% |
|||
| Fixed O&M, $/kW/year |
48.46 |
0.0394 |
0.04214 |
0.04152 |
||
| Taxes, Insurances, Benefits & Regulatory Costs |
0.00% |
|
0 |
25,842 |
29,377 |
|
| DSRF Expense |
0.30% |
0 |
318 |
300 |
||
|
total working capital |
||||||
| TOTAL OPERATING EXPENSE |
202,202 |
1,239,373 |
1,241,123 |
|||
| Annual increase |
-0.21% |
0.1% |
||||
| GROSS OPERATING MARGIN |
281,505 |
257,278 |
||||
| Annual increase |
-1.32% |
-8.6% |
||||
| PROFIT AND LOSS STATEMENTS | ||||||
| In ’000 PhP |
Year |
0 |
1 |
2 |
||
| Operating income |
1,520,878 |
1,498,402 |
||||
| Operating expense |
1,239,373 |
1,241,123 |
||||
| Operating gross margin |
281,505 |
257,278 |
||||
| - Depreciation & amortization |
50,576 |
50,576 |
||||
| - Interest |
112,908 |
101,023 |
||||
| NET PROFIT BEFORE TAX |
|
118,021 |
105,680 |
|||
| (Tax rate) and Income Tax Holiday (ITH) years |
30% |
0 |
30% |
30% |
||
| - Income tax |
35,406 |
31,704 |
||||
| NET PROFIT AFTER TAX |
82,615 |
73,976 |
||||
| Percentage of increase |
-10.5% |
|||||
| NET CASH FLOW | ||||||
|
Year |
0 |
1 |
2 |
|||
| Net profit after tax |
82,615 |
73,976 |
||||
| Addback: | ||||||
| Depreciation & Amortization |
50,576 |
50,576 |
||||
| Working Capital | ||||||
| Salvage Value | ||||||
| Add: | ||||||
| DSRF Income |
4.00% |
DSRF Income |
4,239 |
4,001 |
||
| Less: | ||||||
| Principal Repayment |
99,042 |
99,042 |
||||
| Profit Sharing |
0.00% |
of income after tax |
0 |
0 |
||
| Social Benefit Fund – Host Community |
0 |
per month |
0 |
0 |
||
| NET CASH FLOW |
38,388 |
29,511 |
||||
| Percentage of increase |
-23.1% |
|||||
| Total Initial investment |
|
1,414,881 |
||||
| Project Cash Flow |
4.59% |
12.90% |
WACC |
-1,414,881 |
38,388 |
29,511 |
|
IRR |
NPV |
-990,417 |
-1,414,881 |
33,381 |
22,315 |
|
|
check |
-894,807 |
-1,414,881 |
34,002 |
23,153 |
||
|
cumulative |
0 |
-1,414,881 |
-1,376,493 |
-1,346,981 |
||
|
project payback |
31.49 |
|
|
|
||
| Invested capital |
30.00% |
424,464 |
||||
| Equity Cash Flow |
15.00% |
15.00% |
Equity IRR |
-424,464 |
38,388 |
29,511 |
|
IRR |
NPV |
0 |
-424,464 |
33,381 |
22,315 |
|
|
check |
0 |
-424,464 |
33,381 |
22,315 |
||
|
cumulative |
0 |
-424,464 |
-386,076 |
-356,565 |
||
|
equity payback |
9.77 |
|
|
|
||
| CALCULATION OF CASH FLOW FOR DEBT SERVICE | ||||||
|
Year |
0 |
1 |
2 |
|||
| Operating gross margin |
281,505 |
257,278 |
||||
| - Income tax |
35,406 |
31,704 |
||||
| - Increase in working capital needs (WCN) |
234,799 |
-2,137 |
||||
| - Profit Sharing |
0 |
0 |
||||
| + DSRF Income |
4,239 |
4,001 |
||||
| - Social Benefit Fund |
0 |
0 |
||||
| Cash flow available for debt service (CFD) |
15,538 |
231,713 |
||||
| CALCULATION OF DEBT SERVICE COVERAGE RATIO (DSCR) | ||||||
|
Year |
0 |
1 |
2 |
|||
| Cash flow available for debt service (CFD) |
15,538 |
231,713 |
||||
| Annual debt service (DS) |
211,949 |
200,064 |
||||
| DEBT SERVICE COVERAGE RATIO (DSCR) |
0.07 |
1.16 |
||||
| CALCULATION OF DIVIDENDS PAYABLE | ||||||
|
Year |
0 |
1 |
2 |
|||
| Cash flow available for debt service (CFD) |
15,538 |
231,713 |
||||
| Annual debt service (DS) |
211,949 |
200,064 |
||||
| CF available for dividends (CFDiv = CFD-DS) |
0 |
31,649 |
||||
| Accumulated CFDiv |
0 |
0 |
31,649 |
|||
| Current year profit after tax |
82,615 |
73,976 |
||||
| Accumulated profit: limit for dividend payable |
0 |
82,615 |
156,591 |
|||
|
0 |
31,649 |
|||||
| Accumulated dividend payable |
0 |
0 |
31,649 |
|||
| Annual dividend payable |
0 |
31,649 |
||||
| CALCULATION OF NPV, IRR AND PAY-BACK ACCORDING TO INVESTED CAPITAL AND DIVIDENDS PAYABLE | ||||||
|
Year |
0 |
1 |
2 |
|||
| Invested capital |
424,464 |
|||||
| Annual dividend payable |
0 |
0 |
31,649 |
|||
| Discount rate to be applied for NPV calculation |
15.00% |
15% |
15% |
|||
| Discount factor for this rate |
1.0000 |
1.0000 |
1.1500 |
1.3225 |
||
| Discounted dividends |
0 |
0 |
23,931 |
|||
| Present value of dividends |
374,114 |
|||||
| NPV of the investment |
-50,350 |
|||||
|
Year |
0 |
1 |
2 |
|||
| Investment schedule |
13.66% |
15.00% |
Equity IRR |
-424,464 |
0 |
31,649 |
| IRR of Invested Capital |
IRR |
NPV |
-50,350 |
-424,464 |
0 |
23,931 |
|
|
check |
-50,350 |
-424,464 |
0 |
23,931 |
|
|
cumulative |
0 |
-424,464 |
-424,464 |
-392,816 |
||
| Pay-back term of invested capital, years |
equity payback |
10.04 |
|
|
||
|
|
|
|
|
|||
| BALANCE SHEET ACCOUNTS | ||||||
| Calculation of Working Capital Needs (WCN): |
|
|||||
| Cash needed for operations (+) |
3.00 |
months of expenses |
17,870 |
17,606 |
||
| Customers / Receivables (+) |
1.00 |
months of revenue |
126,740 |
124,867 |
||
| Stocks / Inventory (+) |
2.00 |
months of fuel & chemicals |
184,180 |
184,124 |
||
| Suppliers / Payables (-) |
1.00 |
months of payables |
93,991 |
93,935 |
||
| WCN |
15.80% |
% of operating income |
234,799 |
232,662 |
||
| CALCULATION OF DEPRECIATION | ||||||
| In ’000 PhP |
Year |
0 |
1 |
2 |
||
| Initial investment in land (PhP/ha), 1 ha = 10,000 m2 |
1,000,000 |
10 |
ha | 10,000 | ||
| Freight on Board = FOB USA = $/kW |
15,750 |
35.000 |
MW | 551,233 | ||
| Ocean Freight = FRT = 5% x FOB |
5% |
27,562 | ||||
| Insurance = INS = 1% x FOB |
1% |
5,512 | ||||
| Cargo, Insurance & Freight = CIF = FOB + FRT + INS | 584,306 | |||||
| Value Added Tax = VAT = 12% x CIF |
12% |
70,117 | ||||
| Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT) |
3% |
21,989 | ||||
| Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty | 676,412 | |||||
| Local Freight Cost = LFC = 3% x CIF |
3% |
17,529 | ||||
| Delivered Cost at Site = DCS = DPLC + LFC | 693,941 | |||||
| Installation Cost = IC = 5% x FOB |
5% |
27,562 | ||||
| Total EPC = DCS + IC | 721,503 | |||||
| Contingency (10%) = EPC x 10% |
10% |
72,150 | ||||
| Documentary Stamps (1%) = EPC x 1% = DS |
1% |
7,215 | ||||
| Total Fixed Assets (EPC + Contingency + DS) | 800,868 | |||||
| Depreciation term (years) |
salvage |
10.00% |
28,831 |
25 |
810,868 |
|
| Development costs (modeler) |
1.00% |
8,109 | ||||
| Other Costs including taxes, contingencies |
12.00% |
97,304 | ||||
| Initial investment in capitalized expenses | 307,615 |
105,413 |
||||
| Amortization term (years) |
salvage |
10.00% |
11,074 |
25 |
||
| Working Capital: | ||||||
| Working capital (initial stocks – fuel) – 2 months | 180,378 | |||||
| Working capital (initial stocks – lubes) – 2 months | 1,900 | |||||
| Working capital (initial stocks – chemical materials) – 2 months | 3,802 | |||||
| Working capital (mobilization – utilities) – 2 months | 3,802 | |||||
| Working capital (mobilization – DOE 1-94) – 2 months | 406 | |||||
| Working capital (mobilization – maintenance) – 2 months | 5,070 | |||||
| Working capital (mobilization – personnel expense) – 2 months | 3,042 | |||||
| Working capital (pre-paid expense – advance rent) – 2 months | 2,535 | |||||
| Working capital (pre-paid expense – other services) – 2 months | 202,202 | 1,267 |
1,118,483 |
|||
| Interest During Construction: | ||||||
| Dev’t fees (loan arranger) |
1.00% |
11,185 | ||||
| Front end fees (loan arranger) |
1.00% |
11,185 | ||||
| Commitment fees (bank) |
0.50% |
5,592 | ||||
| Interest During Construction (bank) – 24 months |
2.00 |
12.00% |
268,436 |
296,398 |
||
| Amortization term (years) |
salvage |
10.00% |
10,670 |
25 |
||
| Total Investment (land, fixed, capitalized expenses, working capital) | 1,414,881 | |||||
| Depreciation of fixed assets |
28,831 |
28,831 |
||||
| Amortization of capitalized expenses (development costs, working capital) |
11,074 |
11,074 |
||||
| Amortization of capitalized expenses (IDC) |
10,670 |
10,670 |
||||
| TOTAL DEPRECIATION & AMORTIZATION EXPENSE |
50,576 |
50,576 |
||||
| Evolution of fixed assets and capitalized expenses |
Year |
0 |
1 |
2 |
||
| Land (non-depreciable) |
10,000 |
10,000 |
10,000 |
|||
| Gross fixed assets (PPE, Building, Civil Works) |
800,868 |
800,868 |
800,868 |
|||
| Accumulated depreciation |
0 |
28,831 |
57,662 |
|||
| Net fixed assets |
800,868 |
772,037 |
743,205 |
|||
| Gross capitalized expenses (Development Costs, Working Capital) |
307,615 |
307,615 |
307,615 |
|||
| Accumulated amortization |
0 |
11,074 |
22,148 |
|||
| Net capitalized expenses |
307,615 |
296,541 |
285,467 |
|||
| Gross capitalized interest during construction (IDC) |
296,398 |
296,398 |
296,398 |
|||
| Accumulated amortization |
0 |
10,670 |
21,341 |
|||
| Net capitalized interest during construction (IDC) |
296,398 |
285,728 |
275,057 |
|||
| Total Depreciable Assets (fixed assets, capitalized expenses, IDC) |
1,404,881 |
1,354,305 |
1,303,730 |
|||
| Taxes, Insurances, Benefits & Regulatory Costs |
Year |
0 |
1 |
2 |
||
| Real Property Tax – Land |
1.60% |
of land |
160 |
160 |
||
| Real Property Tax – PPE |
1.60% |
of fixed assets |
12,353 |
11,891 |
||
| Real Property Tax – Buildings |
0.80% |
of building | ||||
| Land Lease & ROW |
0.00 |
PhP/MT coal | ||||
| Property Insurance – PPE |
0.78% |
of fixed assets |
6,247 |
6,247 |
||
| Property Insurance – Building |
0.78% |
of building | ||||
| Business Interruption Insurance |
0.56% |
of previous year’s revenue |
4,485 |
8,517 |
||
| Special Education Fund – benefits to host community |
1.00% |
of land |
100 |
100 |
||
| SEC Registration & Fees |
3,919 |
3.92 |
3.92 |
|||
| BIR Registration & Fees |
530 |
0.53 |
0.53 |
|||
| DENR Permits & Fees |
99 |
0.10 |
0.10 |
|||
| Discharge Fee (BOD, TSS) – DENR |
0 |
0.00 |
0.00 |
|||
| EMB Permits & Fees |
396 |
0.40 |
0.40 |
|||
| NWRB Permits & Fees |
17,417 |
17.42 |
17.42 |
|||
| PNRI Permits & Fees |
5,900 |
5.90 |
5.90 |
|||
| ERC Registration & Fess |
1,500 |
1.50 |
1.50 |
|||
| DOLE Permits & Fees |
212 |
0.21 |
0.21 |
|||
| DTI Permits & Fees |
0 |
0.00 |
0.00 |
|||
| LGU Registration & Fees |
2,009 |
2.01 |
2.01 |
|||
| NTC Registration & Fees |
28 |
0.03 |
0.03 |
|||
| BOC Registration & Fees |
5,000 |
5.00 |
5.00 |
|||
| PPA Registration & Fees |
1,000 |
1.00 |
1.00 |
|||
| ATO Registration & Fees |
13,050 |
13.05 |
13.05 |
|||
| PDEA Registration & Fees |
3,000 |
3.00 |
3.00 |
|||
| BOI Registration & Fees |
4,500 |
4.50 |
4.50 |
|||
| DOE Permits & Fees |
800 |
0.80 |
0.80 |
|||
| Local Business Taxes (1/2 of 1% of GR) |
0.00% |
of gross revenue |
0 |
0 |
||
| National Franchise Taxes (1/2 of 1% of GR) |
0.00% |
of gross revenue |
0 |
0 |
||
| DOE 1-94 (PhP 0.01 per kWh sold) |
0.01 |
per kWh sold |
2,438 |
2,402 |
||
| Total Taxes, Insurances & Regulatory Costs |
25,842 |
29,377 |
||||
| DEBT SERVICE CALCULATION | ||||||
| In ’000 PhP |
Year |
0 |
1 |
2 |
||
| Total Initial investment |
1,414,881 |
|||||
| % to be financed by capital |
Equity IRR |
15.00% |
30.00% |
|||
| % to be financed by non refundable subsidy |
Subsidy |
0.00% |
0.00% |
|||
| % to be financed by debt |
Debt Interest |
12.00% |
70.00% |
|||
| Initial amount of capital |
WACC |
12.90% |
424,464 |
|||
| Amount of subsidy |
0 |
|||||
| Initial amount of debt |
990,417 |
|||||
| Repayment term (years) | 99,042 |
10 |
||||
| Constant Repayment Method: | ||||||
| Annual repayment |
99,042 |
99,042 |
||||
| Amount of debt at year end |
990,417 |
891,375 |
792,333 |
|||
| Average amount of debt |
940,896 |
841,854 |
||||
| Reference interest rate (Libor or other) |
10.00% |
10.00% |
10.00% |
|||
| Spread |
2.00% |
2.00% |
2.00% |
|||
| Interest rate of debt |
1 |
12.00% |
12.00% |
12.00% |
||
| Interest based on average amount of debt |
112,908 |
101,023 |
||||
| Declining Balance Method: | ||||||
| Beginning Balance |
990,417 |
933,979 |
||||
| Interest based on beginning balance |
0 |
17.70% |
12.00% |
118,850 |
112,077 |
|
| Principal repayment | 175,288 |
10 |
56,438 |
63,211 |
||
| Remaining balance |
990,417 |
933,979 |
870,768 |
|||
|
Year |
0 |
1 |
2 |
|||
| Beginning Balance |
990,417 |
891,375 |
||||
| Annual amount of interest |
112,908 |
101,023 |
||||
| Annual amount of principal |
99,042 |
99,042 |
||||
| Annual debt service (principal + interest) |
211,949 |
200,064 |
||||
| Ending Balance |
990,417 |
891,375 |
792,333 |
|||
| Debt Service Reserve Fund |
6 |
months of debt service |
105,975 |
100,032 |
||
| DSRF Income -interest on Foreign Currency Deposit |
4.00% |
DSRF Income |
4,239 |
4,001 |
||
| Withholding Tax on Foreign Currency Deposit |
7.50% |
WHTax | ||||
| DSRF Expense – withholding tax |
0.30% |
DSRF Expense |
318 |
300 |
||
| BALANCE SHEET | ||||||
| BALANCE SHEET BEFORE DIVIDEND PAYMENT | ||||||
| In ’000 PhP |
Year |
0 |
1 |
2 |
||
| Cash needed for operations |
0 |
17,870 |
17,606 |
|||
| Additional cash (if negative, it would represent additional debt) |
0 |
-200,650 |
-173,003 |
|||
| Receivables / Customers |
0 |
126,740 |
124,867 |
|||
| Stocks / Inventory |
0 |
184,180 |
184,124 |
|||
| Land |
10,000 |
10,000 |
10,000 |
|||
| Fixed assets (net) |
800,868 |
772,037 |
743,205 |
|||
| Capitalized expenses (net) |
307,615 |
296,541 |
285,467 |
|||
| Capitalized IDC (net) |
296,398 |
285,728 |
275,057 |
|||
| Total assets |
1,414,881 |
1,492,445 |
1,467,324 |
|||
| Suppliers / Payables |
0 |
93,991 |
93,935 |
|||
| Debt |
990,417 |
891,375 |
792,333 |
|||
| Shareholder’s Advances | ||||||
| Current year profit after tax |
0 |
82,615 |
73,976 |
|||
| Accumulated reserves |
0 |
0 |
82,615 |
|||
| Subsidy |
0 |
0 |
0 |
|||
| Capital |
424,464 |
424,464 |
424,464 |
|||
| Total liabilities and net worth |
1,414,881 |
1,492,445 |
1,467,324 |
|||
|
variance |
- | - | - | |||
| BALANCE SHEET AFTER DIVIDEND PAYMENT | ||||||
|
Year |
0 |
1 |
2 |
|||
| Cash needed for operations |
0 |
17,870 |
17,606 |
|||
| Additional cash (if negative, it would represent additional debt) |
0 |
-200,650 |
-204,651 |
|||
| Receivables / Customers |
0 |
126,740 |
124,867 |
|||
| Stocks / Inventory |
0 |
184,180 |
184,124 |
|||
| Land |
10,000 |
10,000 |
10,000 |
|||
| Fixed assets (net) |
800,868 |
772,037 |
743,205 |
|||
| Capitalized expenses (net) |
307,615 |
296,541 |
285,467 |
|||
| Capitalized IDC (net) |
296,398 |
285,728 |
275,057 |
|||
| Total assets |
1,414,881 |
1,492,445 |
1,435,675 |
|||
| Suppliers / Payables |
0 |
93,991 |
93,935 |
|||
| Debt |
990,417 |
891,375 |
792,333 |
|||
| Shareholder’s Advances | ||||||
| Current year profit after tax | ||||||
| Reserves |
0 |
82,615 |
124,943 |
|||
| Subsidy |
0 |
0 |
0 |
|||
| Capital |
424,464 |
424,464 |
424,464 |
|||
| Total liabilities and net worth |
1,414,881 |
1,492,445 |
1,435,675 |
|||
|
variance |
- | - | - | |||
| Calculation of Dividends Payable | ||||||
| Gross Margin |
281,505 |
257,278 |
||||
| Income Tax (-) |
35,406 |
31,704 |
||||
| Increase in Working Capital (-) |
234,799 |
-2,137 |
||||
| Profit Sharing (-) |
0 |
0 |
||||
| DSRF Income (+) |
4,239 |
4,001 |
||||
| Social Benefit Fund (-) |
0 |
0 |
||||
| Cash flow available for debt service (CFD) |
15,538 |
231,713 |
||||
| Annual debt service (DS) = Interest + Principal |
211,949 |
200,064 |
||||
| CF available for dividends (CFDiv = CFD-DS) |
0 |
31,649 |
||||
| Accumulated CFDiv |
0 |
0 |
31,649 |
|||
| Current year profit = Income After Tax |
82,615 |
73,976 |
||||
| Accumulated profit: limit for dividend payable |
0 |
82,615 |
156,591 |
|||
| Accumulated dividend payable |
0 |
0 |
31,649 |
|||
| Annual dividend payable |
planned |
actual |
-424,464 |
0 |
31,649 |
|
| Investor 1 |
60.00% |
56.04% |
-254,679 |
0 |
18,989 |
|
| Investor 2 |
20.00% |
41.60% |
-84,893 |
0 |
6,330 |
|
| Investor 3 |
20.00% |
2.36% |
-84,893 |
0 |
6,330 |
|
| CASH FLOW STATEMENT |
Year |
0 |
1 |
2 |
||
| OPERATIONS | ||||||
| Net Income (after tax) |
0 |
82,615 |
73,976 |
|||
| Add: Depreciation & Amortization |
0 |
50,576 |
50,576 |
|||
| (Increase) / Decrease in Receivables |
0 |
-126,740 |
1,873 |
|||
| (Increase) / Decrease in Inventories |
0 |
-184,180 |
56 |
|||
| Increase / (Decrease) in Accounts Payable |
0 |
93,991 |
-56 |
|||
| Net Cash flow from Operations |
0 |
-83,738 |
126,425 |
|||
| INVESTMENTS | ||||||
| Additions to PP&E |
800,868 |
-800,868 |
0 |
0 |
||
| Additions to Capitalized Expenses |
307,615 |
-307,615 |
0 |
0 |
||
| Additions to Capitalized IDC |
296,398 |
-296,398 |
0 |
0 |
||
| Additions to Land |
10,000 |
-10,000 |
0 |
0 |
||
| Net Cash flow Used for Investments |
1,414,881 |
-1,414,881 |
0 |
0 |
||
| Cash flow before Financing |
-1,414,881 |
-83,738 |
126,425 |
|||
| FINANCING | ||||||
| Increase (Decrease) in Shareholder Advances |
0 |
0 |
0 |
|||
| Increase (Decrease) in Long-term Debt |
990,417 |
990,417 |
-99,042 |
-99,042 |
||
| Increase (Decrease) in Subsidy |
0 |
0 |
0 |
0 |
||
| Increase (Decrease) in Capital Stock |
424,464 |
424,464 |
0 |
0 |
||
| Net Cash flow from Financing |
1,414,881 |
1,414,881 |
-99,042 |
-99,042 |
||
| NET CASH FLOW |
0 |
-182,780 |
27,383 |
|||
| Add: Beginning Cash Balance |
0 |
-182,780 |
||||
| ENDING CASH BALANCE |
0.00 |
-182,780 |
-155,396 |
|||
| Levelized Price and Generation Cost of Electricity |
Year |
0 |
1 |
2 |
||
| Discounting Rate, % p.a. |
15.00% |
48.46 |
NPV |
|||
| Electricity sales | MWh |
$/kWh |
PhP/kWh |
1,514,166 |
243,838 |
240,234 |
| TOTAL OPERATING INCOME (levelized price) | 000 PhP |
0.1287 |
6.2373 |
9,444,248 |
1,520,878 |
1,498,402 |
| Total Fuel Costs | 000 PhP |
0.0948 |
4.5940 |
6,956,020 |
1,082,265 |
1,082,265 |
|
|
|
|||||
| Expenses from lube purchase | 000 PhP |
0.0010 |
0.0484 |
73,284 |
11,402 |
11,402 |
| Purchase of chemical materials | 000 PhP |
0.0019 |
0.0936 |
141,664 |
22,813 |
22,476 |
| Utilities (electricity, water) | 000 PhP |
0.0019 |
0.0936 |
141,664 |
22,813 |
22,476 |
| DOE 1-04 (0.01 PhP/kWh sold) | 000 PhP |
0.0002 |
0.0100 |
15,142 |
2,438 |
2,402 |
|
|
|
|||||
| Maintenance of the installation | 000 PhP |
0.0026 |
0.1247 |
188,885 |
30,418 |
29,968 |
| Personnel expense | 000 PhP |
0.0015 |
0.0748 |
113,331 |
18,251 |
17,981 |
| Land lease, rent | 000 PhP |
0.0013 |
0.0624 |
94,442 |
15,209 |
14,984 |
| Other services | 000 PhP |
0.0006 |
0.0312 |
47,221 |
7,604 |
7,492 |
| Taxes, Insurances, Benefits & Regulatory Costs | 000 PhP |
0.0023 |
0.1120 |
169,583 |
25,842 |
29,377 |
| DSRF Expense | 000 PhP |
0.0000 |
0.0009 |
1,293 |
318 |
300 |
|
|
|
|||||
| - Depreciation & amortization | 000 PhP |
0.0045 |
0.2159 |
326,929 |
50,576 |
50,576 |
| - Interest | 000 PhP |
0.0050 |
0.2410 |
364,856 |
112,908 |
101,023 |
| - Income tax | 000 PhP |
0.0033 |
0.1605 |
242,980 |
35,406 |
31,704 |
|
|
|
|||||
| Total Generation Cost |
0.1210 |
5.8628 |
8,877,294 |
1,438,263 |
1,424,426 |
|
| Net Profit |
0.0077 |
0.3744 |
566,954 |
82,614.99 |
73,976.13 |
|
4 Responses to “Gas Turbine and CCGT LevelizedTariff, Levelized Cost and Financial Model”
Leave a Reply
December 2nd, 2009 at 3:21 am
[...] http://energytechnologyexpert.com/financial-models/gas-turbine-and-ccgt-levelizedtariff-levelized-co... [...]
January 12th, 2011 at 5:52 pm
certainly, what a great web page and informative posts, im going to add backlink – bookmark this url? Regards, Reader.
June 15th, 2011 at 4:59 pm
Question rather than a comment. I there a rule of thumb calculation to work out how much natural gas / LNG is required to provide 1 MVA of electricity from a CCGT power station?
June 26th, 2011 at 1:39 am
Hi Donald, rather than a rule of thumb, I will provide you some inputs. You need to know the power factor so you may know the MW from the MVA. Then you need to know the overall fuel to electricity efficiency of a CCGT (around 54-56%), the natural gas/LNG heating value (kJ/kg) so you will be able to estimate the kg/s of fuel given the MW of electricity.