Delivered Coal Price Calculation (DCPC) Model – an excel model

December 20th, 2017 No Comments   Posted in coal pricing formula

Delivered Coal Price Calculation (DCPC) Model – an excel model

A logical extension to the oil pump price calculation (OPPC) model is the delivered coal price calculation (DCPC) model developed again by Marcial Ocampo.

The need for such calculation model is to enable the user of the DCPC model to estimate the impact of the revised excise tax on coal (local and imported) which is levied currently at PHP 10.00 per metric ton (MT), and will be progressively increased to PHP 50, then 150 and finally 300 per MT under the new tax reform law (TRAIN) recently passed by both houses of Congress and Senate and signed into law by President DU30.

The excel model was developed by Marcial from his DOE and power industry experience and his excel modeling expertise in doing oil, coal, gas, geothermal, hydro, renewable energy pricing calculations and project finance modeling.

Once the model determines the delivered price of coal, this coal price is then used in the project finance model for a coal-fired power plant using various technologies such as traditional sub-critical pulverized coal (PC) and the cleaner coal technologies such as circulating fluidized bed (CFB), integrated gasification and combined cycle (IGCC). As boiler steam pressure has been raised to increase thermal efficiency, the use of super-critical and ultra-super-critical steam generation technologies have further raised the thermal efficiency of pulverized coal, CFB and IGCC technologies.

Since the excise tax is levied on a metric ton of coal (which includes the pure coal and attendant moisture (water) and ash), the use of local coal with lower heat content (BTU) and higher moisture and ash content as compared with imported coal with higher heat content and lower moisture and ash content will invariably raise the cost of generated electricity because of the effect of lower heat content and lower thermal efficiency when using low BTU coals.

The DCPC model is developed as follows:

Imported Coal Cost:

Description:                                          Indonesian / Baramulti Steam Coal

Tonnage:                                                  22,468.60 MT

Bill of Lading / Airway Bill No.:          113/BM/BJM-PHIL/VIII/2004

Estimated / Actual Date of Arrival:     9/20/2004

Port of Entry:                                      BCFTPP Port

CUSTOMS DUTY:

FOB Value = FOB$ = 60.00 $/MT * 22,468.60 MT = 1,348,116.58 USD

Freight = FRT$ = 15.00 $/MT * 22,468.60 MT = 337,029.15 USD

Insurance = INS$ = 0.50% of FOB = 0.50% * 1,348,116.58 = 6,740.58 USD

Other Charges = OTH$ = 0.00 USD

Dutiable Value in US$ = FOB$ + FRT$ + INS$ + OTH$ = 1,691,886.31 USD

Dutiable Value in PHP = 1,691,886.31 USD * 50.00 PHP/USD = 84,594,315.53 PHP

Customs Duty = 84,594,315.53 PHP * 3.00% = 2,537,829.47 PHP

TAXABLE VALUE:

Dutiable Value (DV) = 84,594,315.53 PHP

Bank Charges (BC) =  0.0585% of Dutiable Value = 49,487.67 PHP

Customs Duty (CD) = 2,537,829.47 PHP

Brokerage Fee (BF) = 0.1408% of Dutiable Value = 124,127.20 PHP

Arrastre Charges (AC) = 66.00 PHP/MT * 22,468.60 MT = 1,482,928.24 PHP

Wharfage Fee (WF) =  40.00 PHP/MT * 22,468.60 MT =  898,744.39 PHP

Customs Docs Stamps (CDS) = 2,120.00 PHP

Import Processing Fee (IPF) = 8,000.00 PHP

Excise Tax (ET) = 10.00 PHP/MT * 22,468.60 MT = 224,686.10 PHP

LANDED COST (LC) = DV + BC + CD + BF + AC + WF+ CDS + IPF + ET

=  89,922,238.59 PHP

VALUE ADDED TAX (VAT) = 12% of LC = 12% * 89,922,238.59 PHP

= 10,790,668.63 PHP

Tax Paid Landed Cost (TPLC) = 89,922,238.59 PHP+ 10,790,668.63 PHP

100,712,907.22 PHP

TPLC (PHP/MT) = 100,712,907.22 PHP / 22,468.60 MT = 4,482.38 PHP/MT

TPLC (USD/MT) = 4,482.38 PHP/MT / 50.00 PHP/MT = 89.65 USD/MT

SUMMARY

Customs Duty (CD) = 2,537,829.47 PHP

Excise Tax (ET) = 224,686.10 PHP

Customs Docs Stamps (CDS) = 2,120.00 PHP

Import Processing Fee (IPF) = 8,000.00 PHP

TOTAL DUTIES & TAXES =  CD + ET + CDS + IPF = 2,772,635.56 PHP

Delivered Price of Coal = 4,482.38 PHP/MT = 89.65 USD/MT

The next step is to correct for variance with agreed heating value, moisture, ash and other important parameters that will affect the coal-fired power generating plant. These price adjustments are included in the coal supply contract to adjust the delivered price of coal and convert it into a PARITY PRICE of a reference coal of given heating value, moisture, ash and other important specs.

You may download the delivered coal price calculation (DPCC) model by clicking this link:

Coal Parity Pricing and Specifications

CONCLUSION:

Since the excise tax is levied on the weight of the whole coal irrespective of its heating value or energy content and other specs such as moisture and ash, the revised excise tax which will reach a maximum rate of 300 PHP/MT will be highly punitive of lower rank coal such as lignite (low BTU, high moisture, high ash) and sub-bituminous coals with moderate BTU, moisture and ash compared to imported coal.

The resulting impact on the price of generated electricity from lower quality domestic coal will be significant compared to that of the better quality imported coal (higher BTU, low moisture, low ash).

Further, using lower quality domestic coal also has a further disadvantage as it has lower thermal efficiency because of its lower heat content and higher moisture and ash, which magnifies further the impact.

The next step is to run the project finance models for each technology (PC, CFB, IGCC using sub-critical, super-critical and ultra-super-critical pressures) to determine the cost of electricity to achieve a given desired equity or project returns (IRR, NPV, PAYBACK).

By comparing the base scenario of existing price of coal with current excise tax rate of 10.00 PHP/MT with the proposed coal tax of 50, 150 and 300 PHP/MT, we can predict the electricity price increase impact for each of the coal-fired power generation technologies currently in use and proposed in the future, and arrive at the average grid price due to higher coal-generated electricity price, and thus the over-all electricity price impact of the excise tax adjustment on domestic and imported coal supplies.

You may run the demo models for subcritical PC, CFB, IGCC and higher pressures (supercritical, ultra-super-critical):

ADV Coal-Fired CFB Thermal Model3_50 MW – demo5b

ADV Coal-Fired CFB Thermal Model3_135 MW – demo5b

ADV Coal-Fired PC Subcritical Thermal Model3 – demo5b

ADV Coal-Fired PC Supercritical Thermal Model3 – demo5b

ADV Coal-Fired PC Ultrasupercritical Thermal Model3 – demo5b

Email me:

energydataexpert@gmail.com

 

Monte Carlo Simulation in Project Finance Modeling – free demo model

December 26th, 2016 No Comments   Posted in Monte Carlo Simulation

Monte Carlo Simulation in Project Finance Modeling – free demo model

Your energy technology selection and project finance modeling expert is pleased to announce that you can now download a free demo model for Stochastic analysis of the risks in a biomass direct combustion power plant. (Other MCS models are available for renewable energy, conventional, fossil, nuclear power generation technologies)

A free demo model linked to a Monte Carlo Simulation add-in that can be downloaded with this link: (Please use Google search to get a copy of the excel file below)

MonteCarlito_v1_10

to run the stochastic analysis of the project risks for the following variables:

======

11.78 MW Configuration Monte Carlo Simulation inputs
0 1
Plant Variables 65,952 Deterministic Stochastic Used
Current Value Value Min Max Value In Model
Electricity Tariff 8.728 8.728 90.00% 110.00% 9.176 9.176
Plant Availability Factor 97.10% 94.52% 90.00% 110.00% 97.10% 97.10%
Fuel Heating Value 5,368 5,198 90.00% 110.00% 5,368 5,368
Debt Ratio 70% 70% 90.00% 110.00% 73% 73%
Plant Capacity per Unit 11.78 12.00 90.00% 110.00% 11.78 11.78
O&M Cost (Opex) – variable O&M 26.90 27.99 90.00% 110.00% 26.90 26.90
O&M Cost (Opex) – fixed O&M 5,159.29 5,094.28 90.00% 110.00% 5,159.29 5,159.29
O&M Cost (Opex) – fixed G&A 9.69 10.00 90.00% 110.00% 9.69 9.69
Cost of Fuel 1.307 1.299 90.00% 110.00% 1.307 1.307
Plant Heat Rate 12,739 12,186 90.00% 110.00% 12,739 12,739
Exchange Rate 40.41 43.00 90.00% 110.00% 40.41 40.41
Capital Cost (Capex) 1,966.60 1,935.98 90.00% 110.00% 1,966.60 1,966.60

======

To run the Monte Carlo simulation, you load up first the add-in link, and then run the project finance model:

ADV Biomass Direct Combustion Model3_MCS (demo)

Then run the Macro 1 (press ctrl + d) to activate the Monte Carlo simulation add-in.

The results of the simulation is found in the Sensitivity worksheet:

=====

Stochastic Model Net Profit pre-Tax Feed-in
Equity Returns Project Returns After Tax WACC Tariff
press ctrl + W to run NPV IRR PAYBACK NPV IRR PAYBACK Million PhP % PhP/kWh
1,000 65,952 18.03% 6.32 (220,171) 13.92% 5.95 1,201 12.04% 8.728
Mean 6,853 16.72% 7.76 -301,632 13.16% 6.35 1,173 11.61% 8.728
Standard error 5,814 0.14% 0.08 6,348 0.07% 0.03 7 0.05% 0.000
Median -1,001 16.41% 7.22 -299,681 13.12% 6.26 1,183 11.51% 8.728
Standard deviation 183,855 4.29% 2.61 200,735 2.17% 0.93 222 1.43% 0.000
Variance 33,802,589,673 0.18% 6.81 40,294,436,447 0.05% 0.87 49,448 0.02% 0.000
Skewness 0.105 0.223 0.477 -0.045 -0.013 0.721 -0.266 0.223 -1.000
Kurtosis 2.410 2.603 2.030 2.533 2.563 3.639 2.704 2.603 1.000
Expected value = 6,853 16.72% 7.76 -301,632 13.16% 6.35 1,173 11.61% 8.728
The standard deviation*1.96 = 360,355 8.41% 5.12 393,440 4.26% 1.83 436 2.81% 0.000
95% of all outcomes, max = 367,208 25.13% 12.88 91,808 17.42% 8.18 1,609 14.41% 8.728
95% of all outcomes, min = -353,503 8.31% 2.65 -695,072 8.90% 4.52 737 8.80% 8.728

=====

The simulation  above shows the results after 1000 random trials (+/- 10% on the deterministic value), the mean, standard error, mean, standard deviation, variance, Skewness, Kurtosis,  expected value (mean),  standard deviation x 1.96, and the  maximum and minimum outcomes at 95% confidence level.

If the means of IRR, NPV, PAYBACK, net profit after tax, pre-tax WACC and first year tariff are lower than the deterministic value, then there is a significant project risk of not achieving that deterministic target. This would require extra effort to determine accurately this target (assumption) as having a poor estimate would introduce significant project risks.

When you set the number of trials to bold font, the add-in program will also show the distribution curve of each of the modeled variable so you can examine in more detail the attendant project risks.

Email me for more information and ordering details:

energydataexpert@gmail.com

Cheers

 

Power Generation and Fuel Cycle Technologies – a Quick Guide to Energy Articles and Financial Modeling

July 9th, 2016 No Comments   Posted in cost of power generation

Power Generation and Fuel Cycle Technologies – a mini-lecture series with power point presentation and excel project finance models

Your energy technology selection expert is beginning a lecture series on power generation and fuel cycle technologies. This will involve a discussion on the principles of the technology, its history, capital and operating costs, benefits and risks.

Objectives

1) To provide the participants a basic understanding of the following commercially available:

– fuel cycle technologies

– power generation technologies, and

– energy storage technologies

2) To know the basic principles, costs, environmental impact, risks and applicability of each of these technologies, and

3) To present the technology roadmap of each of these technologies to guide us in the near term (next 20 years – up to 2020) and in the long term (next 50 years – up to 2050)

The Past

o Introduction – what-is-electricity

o How is Electricity Generated – generation-of-electricity

o History of Power Generation – history-of-power-generation

o The Complete Electric Power System (base load, intermediate & peaking loads)

The Present

o Commercially Available Fuel Technologies, Power Generation Technologies, and Energy Storage Technologies –

commercially-available-fuel-cycle-technologies

o Primary Energy Sources – primary-energy-sources

o Fuel Properties – fuel-properties

o For the commercially available technologies:

– Basic Principles

– Costs

– Environmental Impact

– Associated Risks

– Applicability

COMMERCIALLY AVAILABLE POWER GENERATION TECHNOLOGIES:

The Future

o The Technology Roadmap: Vision, Portfolio, Approach, Global Drivers of Change, Cost of Not Yet Commercially Available Tech –

technology-roadmap

o The Near Term Fuel, Power Generation, and Energy Storage Technologies (up to 2020) –

near-term-energy-sources

o The Long Fuel, Power Generation, and Energy Storage Technologies (up to 2050) –

long-term-energy-sources

=========

The project finance models of the power generation technology selection expert are based on one model template; hence, the results are unique for the technology’s capital and operating costs, fuel properties and costs, energy conversion efficiency or heat rate, and energy resource availability and reliability.

The financial models are denominated in Philippine Pesos (PhP 47.00 = USD). You can easily convert to your own local currency by changing the base and forward fixed exchange rate (e.g. XXX 100.00 = USD, USD 1.00 = USD) and do a global replacement of all PhP with XXX currency.

SAMPLE PROJECT FINANCE MODELS:

Sample Project Finance Model

Here is a sample project finance model for a biomass thermal power plant that can be customized for your specific need: (Advanced regulator model)

adv-biomass-direct-combustion-model4-demo9

The same model above is also presented in just one worksheet (tab) so you would be able to understand better the structure of a project finance model: (OMT Energy Enterprises model)

omt-biomass-direct-combustion-model4-demo9

A sample non-thermal power plant (no fuel GHV and no fuel cost) can also be downloaded:

adv-mini-hydro-model3-demo5

A sample liquid fossil thermal power plant (with fuel GHV, fuel density and fuel cost) is also available:

adv-diesel-genset-model3-demo5

Email me if you need customization:

energydataexpert@gmail.com

You may order on-line any project finance model of any renewable, conventional, fossil, nuclear, combined heat and power, and energy storage power generation technologies by visiting this website:

www.energydataexpert.com

Or please visit this blog for any power generation technology article:

www.energytechnologyexpert.com

Regards,

The energy technology expert and financial modeling expert

=======

SAMPLE PROJECT FINANCE MODELS:

RENEWABLE ENERGY

adv-biomass-cogeneration-model3-demo5 – process heat (steam) and power

adv-biomass-direct-combustion-model3-demo5 – bagasse, rice husk or wood waste fired boiler steam turbine generator

adv-biomass-gasification-model3-demo5 – gasification (thermal conversion in high temperature without oxygen or air, pyrolysis)

adv-biomass-igcc-model3-demo5 – integrated gasification combined cycle (IGCC) technology

adv-biomass-wte-model3-demo5 – waste-to-energy (WTE) technology for municipal solid waste (MSW) disposal and treatment

adv-biomass-wte-model3-pyrolysis-demo5 – waste-to-energy (WTE) pyrolysis technology

adv-mini-hydro-model3-demo5 – run-of-river (mini-hydro) power plant

adv-concentrating-solar-power-csp-model3-demo5 – concentrating solar power (CSP) 400 MW

adv-solar-pv-1-mw-model3-demo5 – solar PV technology 1 MW Chinese

adv-solar-pv-25-mw-model3-demo5 – solar PV technology 25 MW European and Non-Chinese (Korean, Japanese, US)

adv-wind-onshore-model3-demo5 – includes 81 wind turbine power curves from onshore WTG manufacturers

adv-wind-offshore-model3-demo5 – includes 81 wind turbine power curves from  offshore WTG manufacturers

adv-ocean-thermal-model3_10-mw-demo5 – ocean thermal energy conversion (OTEC) technology 10 MW

adv-ocean-thermal-model3_50-mw-demo5 – ocean thermal energy conversion (OTEC) technology 50 MW

CONVENTIONAL, FOSSIL AND NUCLEAR ENERGY

adv-geo-thermal-model3-demo5 – geothermal power plant  100 MW

adv-large-hydro-model3-demo5 – large hydro power plant 500 MW

adv-coal-fired-cfb-thermal-model3_50-mw-demo5 – subcritical circulating fluidized bed (CFB) technology 50 MW

adv-coal-fired-cfb-thermal-model3_135-mw-demo5 – subcritical circulating fluidized bed (CFB) technology 135 MW

adv-coal-fired-pc-subcritical-thermal-model3-demo5 – subcritical pulverized coal (PC) technology 400 MW

adv-coal-fired-pc-supercritical-thermal-model3-demo5 – supercritical pulverized coal (PC) technology 500 MW

adv-coal-fired-pc-ultrasupercritical-thermal-model3-demo5 – ultrasupercritical pulverized coal (PC) technology 650 MW

adv-diesel-genset-model3-demo5 – diesel-fueled genset (compression ignition engine) technology 50 MW

adv-fuel-oil-genset-model3-demo5 – fuel oil (bunker oil) fired genset (compression ignition engine) technology 100 MW

adv-fuel-oil-thermal-model3-demo5 – fuel oil (bunker oil) fired oil thermal technology 600 MW

adv-natgas-combined-cycle-model3-demo5 – natural gas combined cycle gas turbine (CCGT) 500 MW

adv-natgas-simple-cycle-model3-demo5 – natural gas simple cycle (open cycle) gas turbine (OCGT) 70 MW

adv-natgas-thermal-model3-demo5 – natural gas thermal 200 MW

adv-petcoke-fired-pc-subcritical-thermal-model3-demo5 – petroleum coke (petcoke) fired subcritical thermal 220 MW

adv-nuclear-phwr-model3-demo5 – nuclear (uranium) pressurized heavy water reactor (PHWR) technology 1330 MW

WASTE HEAT RECOVERY BOILER (DIESEL genset; GASOLINE genset; PROPANE, LPG or NATURAL GAS simple cycle)

adv-coal-fired-cfb-thermal-model3_50-mw-chp-demo5 – combined heat and power (CHP)  circulating fluidized bed (CFB) technology 50 MW

adv-diesel-genset-and-waste-heat-boiler-model3-demo5 – diesel genset (diesel, gas oil) and waste heat recovery boiler 3 MW

adv-fuel-oil-genset-and-waste-heat-boiler-model3-demo5 – fuel oil (bunker) genset and waste heat recovery boiler 3 MW

adv-gasoline-genset-and-waste-heat-boiler-model3-demo5 – gasoline genset (gasoline, land fill gas) and waste heat recovery boiler 3 MW

adv-propane-simple-cycle-and-waste-heat-boiler-model3-demo5 – simple cycle GT (propane) and waste heat recovery boiler 3 MW (e.g. Capstone)

adv-simple-cycle-and-waste-heat-boiler-model3-demo5 – simple cycle GT (natural gas, land fill gas, LPG) and waste heat recovery boiler 3 MW (e.g. Capstone)

=========

Should you need the actual models (not demo) that could be revised for your own needs (additional revenue streams, additional expense accounts, additional balance sheet accounts, etc.), you may:

Email me:

energydataexpert@gmail.com

Visit me:

www.energydataexpert.com

www.energytechnologyexpert.com

THANK YOU

=======

 

How to run the Advanced Project Finance Models from OMT (Renewable Energy and Non-RE)

June 24th, 2016 No Comments   Posted in project finance models

How to run the Advanced Project Finance Models from OMT (Renewable Energy and Non-RE)

Your energy and power expert and consultant on project development and project finance modeling has prepared a short guide for running the demo versions that are available by clicking on the links in some of the articles in this blog and profile.

FOR RENEWABLE ENERGY PROJECTS: More »

Nuclear Energy Project Finance Model Template (Financials Tab) – free demo

April 17th, 2016 No Comments   Posted in power generation

Nuclear Energy Project Finance Model Template (Financials Tab) – free demo

This is the latest project finance model template (financials tab or worksheet) that your energy technology selection expert has developed for a nuclear power generation technology. Familiarize with the template and if interested, get the full unlocked version for your immediate use. I can also provide data input service or customize further the model.

Nuclear Energy stored on the earth’s crust during its creation, and its extraction and concentration using various methods such as chemical extraction and centrifuging has provided a great transition fuel for mankind as the world bids time to shift form fossil fuels that have limited life times (e.g. oil to be exhausted in 60 years, natural gas also in the same life time as oil, and coal to be consumed in 250 years) to unlimited renewable energy from the sun (solar PV, solar thermal, hydro, pumped storage, wind, ocean thermal, wave energy). The use of nuclear power has provided many countries with a cheap source of energy and power, though a number of safety issues and actual nuclear mishaps has occurred, notable of which is the Chernobyl in USSR and Fukushima in Japan.

More »

Combined Cycle and Simple (Open) Cycle Gas Turbine Project Finance Model Template (Financials Tab) – free demo

April 17th, 2016 No Comments   Posted in power generation

Combined Cycle and Simple (Open) Cycle Gas Turbine Project Finance Model Template (Financials Tab) – free demo

This is the latest project finance model template (financials tab or worksheet) that your energy technology selection expert has developed for the various natural gas-fired power generation technologies. Familiarize with the template and if interested, get the full unlocked version for your immediate use. I can also provide data input service or customize further the model.

Natural gas is a clean fuel that may be used in simple cycle (open cycle or Brayton cycle) gas turbines such as those used in jet engines, or when the waste heat is recovered in a heat recovery boiler (Rankin cycle). This two cycles (Brayton and Rankin) combine to raise the overall thermal efficiency from 33% to over 54%.

More »

Geothermal Project Finance Model Template (Financials Tab) – free demo

April 17th, 2016 No Comments   Posted in power generation

Geothermal Project Finance Model Template (Financials Tab) – free demo

This is the latest project finance model template (financials tab or worksheet) that your energy technology selection expert has developed for the geothermal power generation technology using energy stored on the earth’s crust. Familiarize with the template and if interested, get the full unlocked version for your immediate use. I can also provide data input service or customize further the model.

Energy stored on the earth’s crust during its creation, and its continued regeneration from nuclear reactions inside the earth to heat water that percolates into the earth’s crust is a continuing source of saturated and superheated steam which can be used to drive steam turbines in single and double flash steam cycles (but releasing the spent geothermal steam to the atmosphere), or using a binary fluid to capture the heat from geothermal fluids without the attendant problem of treating the spent geothermal fluid other than re-injecting it back to mother earth in an end-less cycle.

More »

Steam Cycle and Rankin Cycle Project Finance Model Template (Financials Tab) – free demo

April 17th, 2016 No Comments   Posted in power generation

Steam Cycle and Rankin Cycle Project Finance Model Template (Financials Tab) – free demo

This is the latest project finance model template (financials tab or worksheet) that your energy technology selection expert has developed for the steam cycle and Rankin cycle power generation technology using a variable of energy sources and fossil fuels such as  oil thermal (bunker oil) and gas thermal (natural gas). Familiarize with the template and if interested, get the full unlocked version for your immediate use. I can also provide data input service or customize further the model.

Among the oldest and most versatile power generation technology is based on the steam cycle, also called the Rankin cycle, which consists of a heating source to convert a liquid such as water into saturated steam or superheated steam to drive a steam turbine, and recover the spent steam in the condenser to be pre-heated in a steam drum and then converted to steam in a boiler and superheated further in the super heater of the Rankin cycle.

More »

Biomass Energy Project Finance Model Template (Financials Tab) – free demo

April 15th, 2016 No Comments   Posted in project finance modeling

Biomass Energy Project Finance Model Template (Financials Tab) – free demo

This is the latest project finance model template (financials tab or worksheet) that your energy technology selection expert has developed for biomass energy (cogeneration, direct combustion, gasification, IGCC, WTE) and all other fossil and thermal power plants (burns fossil fuel). Familiarize with the template and if interested, get the full unlocked version for your immediate use. I can also provide data input service or customize further the model.

More »

Financial Ratios in Project Finance Model Ver. 3.0

April 6th, 2016 No Comments   Posted in financial ratios

Financial Ratios in Project Finance Model Ver. 3.0

Financial ratios are mathematical comparisons of financial statement (P&L or Income & Expense, Cash Flow, and Balance Sheet Statements) accounts or categories.

These relationships between income, expense, cash flow and balance sheet accounts help investors, creditors, and internal company management understand how well a business is performing and areas of needing improvement.

Financial ratios are the most common tools used in analyzing a business’ financial standing. Ratios are easy to understand and simple to compute.

They can also be used to compare different companies in different industries. Since a ratio is simply a mathematically comparison based on proportions, big and small companies can be use ratios to compare their financial information. More »

Combined Heat and Power (CHP) Project Finance Model – Compression Ignition (CI) Diesel Engine, Spark Ignition (SI) Gasoline Engine and Open Cycle GT (OCGT) Cogeneration Power Plants

March 18th, 2016 No Comments   Posted in cogeneration

Combined Heat and Power (CHP) Project Finance Model – Compression Ignition (CI) Diesel Engine, Spark Ignition (SI) Gasoline Engine and Open Cycle GT (OCGT) Cogeneration Power Plants

This new model of a diesel reciprocating engine with waste heat recovery boiler is a cogeneration power plant that produces both electricity and heat/steam energy to raise energy utilization efficiency, and with two revenue streams, reduces significantly the cost of power and heat. For comparison, similar cogeneration plants using a gasoline reciprocating engine and open cycle (simple cycle) GT with waste heat recovery boiler is presented. More »

Wind-Diesel Hybrid Project Finance Model with Wind Resource Assessment – now available

March 17th, 2012 1 Comment   Posted in renewable energy

Wind-Diesel Hybrid Project finance Model with Wind Resource Assessment – now available

Analyzing the economics of a wind-diesel hybrid power plant has now become simple with the new wind-diesel project finance model having a wind energy resource simulator. Avoid the time consuming hassle by purchasing this latest product offering from your energy technology selection expert. More »

Linear Programming (LP) Model for Cogeneration and Trigeneration – raising energy utilization efficiency

September 3rd, 2011 No Comments   Posted in Trigeneration and Cogeneration

Linear Programming (LP) Model for Cogeneration and Trigeneration – raising energy utilization efficiency

With the world running out of cheap fossil fuels (crude oil, coal, natural gas), and with continued rise of their prices in the international market, the world is exhausting all possible means of minimizing the impact of diminished supply and expensive cost of fossil fuels.

Among the response of the world’s leading economies as well as emerging economies is to raise energy utilization efficiency in power generation using cogeneration and trigeneration. When the simultaneous provision of electricity and process heat as well as cooling or refrigeration is desirable, the use of cogeneration and trigeneration will raise efficiency from the usual 33% of rankine thermal power systems (oil, gas, coal, biomass thermal) to 56% for cogeneration power systems (oil, gas, biomass) up to 80-90% with trigeneration.

Linear Programming (LP) and setting up LP models to optimize a number of processes and business models is an expertise close to the heart of the energy technology expert. As the LP model custodian of the Petron Bataan Refinery, he was involved in the re-structuring of the refinery’s cost minimization LP model to a profit maximization LP model that ensured that expensive intermediate process streams are blended to the higher valued products which a cost minimization model could not distinguish from. More »

Learn Project Finance and Project Finance Modeling the easy way and make Feasibility Studies

Learn Project Finance and Project Finance Modeling the easy way and make Feasibility Studies

That is right!

Your favorite energy technology selection and business development consultant is now offering one-on-one iternet-based course on project finance and project finance modeling in order to make excellent feasibility studies for your own projects or clients if you are a consultant.

Just email Marcial Ocampo, your energy expert, to guide you to a step-by-step one-on-one modeling of any business concept, define the data and information requirements, go over the power plant technology or process technology, represent it in mathematical form, conduct market study to establish demand, perform projections on supply and demand, prepare the material and energy balances, prepare the income and expense statement, loan amortization table, depreciation table, interest during construction table, all-in project cost (land, FOB, freight, insurance, VAT, customs duty, local transport, installation, contingency, project development cost, working capital and interest during construction), cash flow statement, project IRR, project payback, equity IRR, equity payback, dividends (free cash) flow, balance sheet, and statement of cash flows. More »