DABHOL POWER PROJECT CASE STUDY PPT

This slide shows the fuel mix in the Western region. Warwick July Revised May Other Resources I have included a few other articles and case studies that you can read. The most fundamental of economic principles dictate that prices eventually move to long-run marginal cost, or the cost of building a new home. The presentation can also be viewed at www.

For both types of plants, assured energy is the energy that can be sold under long term contract—whether to the free or regulated market. The current owner is never in the building and has proved over time that he is not wanting to run this business anymore. Create Business Plan Phase 7: For the Dabhol case I have made an assignment rather than just putting some of my opinions on the website. Aneel then auctions that list, having in mind its obligation to keep tariffs at the lowest possible prices.

Dabhol Case Introduction For the Dabhol case I have made an casd rather than just putting some studu my opinions on the website. After Reforms Before Reforms.

Staff did not discover any evidence suggesting that the audited companies were scheduling maintenance or incurring outages in an effort to influence prices. Procure professional services Phase 8: The utilities could have protected themselves against high wholesale price by entering contracts for financial hedges, designed to cover risks of buying power from a volatile spot market while selling it at a frozen retail rate.

I would like you to write-up one or a couple of paragraphs on each section, something like a credit memo. Second, each line should represent a contract.

dabhol power project case study ppt

Judging from our Philippines experience, the first project through certainly paves the way. I plan on completing this project using a team of four people that are highly knowledgeable in computer networks as well as computer systems.

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Comparable plants in the US were selling power at cents per kWh. In project finance there is a basic rule.

dabhol power project case study ppt

The devaluation meant that Dabhol’s energy prices would soar to between two and five times the average price in the area. Political instability and poor sector planning have led to expensive electricity. I even understand that there is a Bollywood film about the Dabhol project modelled after the Godfather.

Find the article with the chronology of the project and write a sentence or two on the final resolution of the power plant.

Dabhol power project case study ppt slide

Enron was to develop and operate the plant. Differences Must assess the credit quality of the off-taker Small risks become large in transaction with many contracts Heat rate degradation Plant availability Contract penalties Interest rate changes. If we didn’t believe in this project and the importance of it to India, we wouldn’t be doing it. A second bridge and its usefulness, cost, and scheduling will be primary factors of interest.

Case Studies in Electric Power – ppt download

Suppliers withheld power from the state’s primary market, and sometimes idled power plants to induce shortages and boost prices. I have also included references to my set of power point slides that describe project finance theory. Since the crisis, IPPs and all private infrastructure sectors have been locked in ongoing disputes with the government regarding aggressive policies in the aftermath of the devaluation.

To put a number to it, we only use about roughly 30, megawatts a day at peak of power in California in a winter day. Risk Analysis Given the contract structure, benchmarking, rate of return calculation and off-taker assessment, write a short credit analysis report. The two tables below demonstrate premiums of the Enron plant compared with other plants.

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I have illustrated a little excerpt from this below. I made a few comments about the issue of whether the plant was really economically viable and whether the whole thing made economic sense. This is demonstrated in the table below.

Dabhol power project case study ppt

At the same time, it isolated the private sector from the market through a combination of regulated pricing and guarantees against commercial risks. The outcome of the Dahbol case study is well known vabhol project finance it is difficult not to call the project a dramatic failure. I have however, dabnol some of the information from the case in screenshots below. The answer could then be your discussion about the recession etc. Alternatively, or in addition, you can make risk matrix where you organise risks construction, operation, financial and put the name of the risk in different rows.

Dabhol power project case study ppt slide

Another question could relate to the World Bank report — The World Bank issued a report stating that the Dabhol plant is uneconomic. That has all changed with the California crisis and the financial demise of Enron. Enron invokes the political force majeure clause in its contract with MSEB, stating that unfavorable political conditions have prevented it from fulfilling contractual obligations.