Financial Model of 660x 4 MW Thermal Power Plant

Presented By: Sudhir Singh Patel EM13

Contents
1. Thermal Power Plant modeling 2. Viable Financial model 3. Learnings 4. Questions Unanswered

1. Thermal Power Plant Modeling

S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Quantitative Variables Coal Quality -Calorific Value Ash Content Moisture Content Boiler Efficiency Suspended Particulate Matter Ash Utlilisation Boiler Configuration Turbine Heat Rate CW temperature Water Source Distance of Water Source Clarifier Mode of Unloading Oil Coal Unloading Mechanism Type of Fly Ash Disposal and Distance Type of Bottom Ash Disposal and Distance Type of Soil Foundation Type (Chimney) Water Table Seismic and Wind Zone Condensate Cooling Method Desalination/RO Plant Evacuation Voltage Level Values 3800-4800 Kcal/Kg 25-35% Less than 8% 0.86 50-100 ppm Fly Ash Utilisation (80%) Double Pass Type 1875 Kcal/Kwh 33 Degree Celsius River Water 5 km With Clarifier Train Track Hoppper Dry Fly Ash Disposal at 1 km Wet Bottom Ash Disposal at 3 km Hard Soil Raft Type Less than 3 meters Low Natural Draught Desalination Plant (RO Type) 765 kV

Power Consumption by Transport Sector

Qualitative Variables Completion Schedule Terms of Payment Performance Guarantee Liability Basis of Price (Firm/Escalation-Linked) Equipment Supplier (Country of Origin) Values 47 Months 10% Advance+ 80% on Delivery+ 5% on Completion+ 5% on operational acceptance Standard (10% of Contract Value) Firm Prices India

Choose Optional Packages Desalination Plant/RO Plant MGR Railway Siding Unloading Equipment at Jetty Rolling Stock/Locomotive FGD Plant Township & Colony Length of Transmission Line till Tie Point (in km)

Yes/No No Yes Yes No Yes No Yes 25

2. Mandatory Packages
Mandatory Packages

S.No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Package
Steam Generator Island Turbine Generator Island Water System Fuel Oil Handling & Storage System Ash Handling System Coal Handling System Mechanical-Miscellaneous Package Switchyard Package Transformers, Switchgear, Cables, Cable Facilities, Grounding & Lighting Packages Emergency DG Set C&I Package Chimney Civil Works Initial Spares Cooling Tower TOTAL Total Benchmark Hard Cost for Power Station (INR Crores/MW)

Benchmark Cost (INR Crore/MW)

1.072 0.60 0.195 0.0785 0.167861954 0.018855568 0.022710899 0.210439009 0.258183113 0.003855372 0.048429511 0.107085667 0.760047893 0.14385731 0.175362668 3.867570679 4.522327074

Tariff Calculation for 4x660 MW capacity

Installed capacity Project cost per MW Annual Plant load factor Auxiliary Power Consumption Plant Efficiency Plant gross heat rate
Specific Fuel oil Consumption Calorifica value coal Fuel oil cost Coal Cost per Tonne assumed including transportation Annual Fuel oil consumption equity debt interest on loan interest on working capital depreciation Rate life of plant O & M charges Return on equity Minimum alternate Tax

MW (Rs. Crore) % % % Kcal/kwh

ml/Kwh Kcal/kg Rs.Per KL Rs.Per Tonne Exsite ML % % % % % years % % %

2640 4.522 85% 8.50% 42% 1875

1 4400 40000 2500

19.65744 30% 70% 12% 12% 5.28% 25 3% 15.50% 11.33%

SI.No 1
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Item Installed Capacity

Total Project cost including interest during Construction (IDC) Project Cost per MW (item 2/item 1) Annual Generation Auxiliary Power Consumption Unit sent out/year (item 4-item 5) Plant Gross heat rate Annual Coal Consumption Specific fuel Consumption Annual coal cost Annual Fuel Oil Consumption Annual Fuel Oil cost Total Variable Cost Variables cost/kwh sent out Interest on Loan Interest on Working capital Borrowing Depreciation @ 5.28% per year for 25 years O&M charges (@ 3% per yr) Return on Equity Income tax on return on Equity Total Fixed costs (sum of items 15 to 20) Fixed costs for sent out units Cost at Bus Levellised Tariff at Bus

Units MW
Rs.Crores Rs. Crores/MW MU MU MU Kcal/Kwh Mill Tonnes Kg/Kwh Rs.Crores ML Rs.Crores Rs.Crores Rs.Crores Rs.Crores Rs.Crores Rs.Crores Rs.Crores Rs.Crores Rs.Crores Rs.Crores Rs.Crores Rs./kwh Rs./kwh

2640 11938.08 4.522 19657.44 1670.882 17986.56 1875 8.332074 0.423864 2083.019 19.65744 78.62976 2161.648 1.2E-07 1002.799 143.257 630.3306 358.1424 555.1207

2689.649 1.5E-07 2.69718 3.677419

Learning

Little technical knowledge is a prerequisite for modeling Calorific value of fuel, distance of point of injection, distance from water and fuel source.

Questions Unanswered

How to find other indices values? What kind of Tax Rates have to be applied? Is there any reference document for calculating Plant civil works cost? How to minimize the cost of overall project?