Promotion of a Power Plant, Economic and Financial Feasibility Analysis of the Investment

TEACHING UNIT 1. DEVELOPING A POWER PARK Introduction Phases of development Factors to consider when developing a power park TEACHING UNIT 2. INVESTMENTS AND COSTS REQUIRED FOR A POWER PLANT Introduction to Electricity Generation Technologies and Costs of Electricity Generation Economic Characteristics of Generation Technologies Price Formation in the Daily Wholesale Electricity Market Bibliography TEACHING UNIT 3. FINANCING ELECTRICITY ACTIVITIES Sources of Project Financing Project Special Purpose Vehicle Debt Syndication Project Finance Historical Background of Project Finance Characteristics of Projects Project Structure Key Elements of Project Finance Phases of Project Finance The Need for a Model Financial Structure of “Project Finance” Stakeholders in “Project Finance” Risk “Project Finance” in Practice Risk Management in “Project Finance” Contracts as a Risk Management Tool TEACHING UNIT 4. THE ACCOUNTING REPRESENTATION OF AN ELECTRIC POWER GENERATION PLANT Definition of Accounting Assets on the Balance Sheet Liabilities on the Balance Sheet The Income Statement Bibliography TEACHING UNIT 5. VALUATION OF INVESTMENTS USING THE DISCOUNTED CASH FLOW METHOD Valuation and Methods Investing Cash Flows Economic Evaluation Criteria and Their Application to the Field of Electric Power Generation Cash Flow Discounting Method Economic Risk Difficult Decisions: Abandoning the Project Some Methodological Issues Strategic Projects Dividend Method Conclusion Bibliography