Financial Analysis for Power Capture in the Operate Stage

Objective

To ensure that the financial model reflects the revenues and operational cost expenditure and updates the relevant revenues and costs throughout the power and capture plants operational phase

Major Deliverables

• Regular periodic updates to the financial model utilising operational data from the plant and capture unit facilities
• Regular periodic updating of the financial model for actual revenues
• Regular periodic reports on the financial status of the project to the project management team, funding bodies and investors over the operational lifecycle of the power plant
• Regular periodic reports on plant revenues and opex costs and effects on cost per MWhr,  levelised cost of electricity, internal rate of return and net present value

Tasks

Specific tasks include the following:

• Regular periodic updating of the financial model for actual operation and maintenance costs which reflect the ongoing operation and maintenance contracts.
• Regular periodic updating of the financial model for actual revenues which reflect power purchase agreements and sales contracts.

• Regular periodic updating of the financial model to ensure that the underlying financial assumptions used remain current.  This will include:

• Tax law changes
• Other changes in law with financial impacts
• Equity injection
• Changes in interest rates
• Debt refinancings
• Changes in dividend payout ratio
• Changes in inflation and exchange rates;
• Regular periodic update and reporting to investors and funding bodies and the project management team relating to the impact on the financial position of the power and capture element of the following:
• Projected timing for value provision events (this may be used where dispersion of grant funding requires evidencing of value delivery as opposed to cost re-imbursement)
• Expected out-turn cost forecasts (P(10), P(50), and P(90))
• Claims and variations
• Regular periodic updating of the capital and operating costs data-book and revenue projections and analysis of forecast out-turn cost projections (P(10), P(50) and P(90)) for the power and capture element
• Regular periodic analysis and review of the impact on the project of open power and capture risks.  This will include update of the risk reduction profile for the power and capture element to evidence where value for money has been provided

Examples

• Powering the Nation 

Key Personnel

• Project Manager
• Financial work-stream lead
• Cost estimation work-stream lead
• Commercial work-stream lead