Financial Modeling & Technical Due Diligence for Power Plants
Intertek's financial modeling provides valuable input to your financial planning process helping to maximise future profits.
Due diligence is an essential part of understanding and evaluating a potential acquisition, or a new supplier. It can support you through the migration of a variety of technical, legal and environmental risks before you commit.
In order to be competitive in the market, power plant operators need to have an accurate financial picture of their budgets, revenue and spend and understand the true costs of plant operation. Without this financial insight, making decisions on important issues such as future capital and maintenance expenditure or how to position yourself in the market may be flawed. More importantly, this can affect long-term profitability and impact your ability to compete with rival power plants.
By investigating material future matters, current practices of processes and policies, as well as forecasting potential risks, due diligence is the necessary step to ensure security for your brand. By qualifying operational risks that could potentially damage your brand reputation, Intertek limits the exposure to damage from the unknown.
Our experts around the globe bring their knowledge to clients on assessing overall performance, the quality and productivity of facilities, identifying and mitigating risks, streamlining manufacturing processes and supply chains, and so much more. Intertek has extensive experience in financial modeling and economic optimisation of power plants. Our Total Quality Assurance analysis can help you identify and break down your plant costs, while taking into consideration important factors such as load following on-off cycling and minimum load operation.
We can provide the necessary information for you to make sound financial decisions on all aspects of plant operation, maintenance and availability for the market – and in turn help you maximise future profits for your power plant.
Our well defined service offering includes the following steps:
- Value assessment
- Generation Screening Curves
- Condition Assessment including review of operational records – outage history and maintenance records
- Non-Destructive Examination
- Capital cost justification
- Variable operation and maintenance cost analysis
- Long-term maintenance and capital spending plan
- Performance and test reports
- Budgeting methods, productivity improvement and equipment life management
- Review of Long-Term Service Agreement (LTSA)
- Contingency Planning and Failure Prediction, including Equipment Survival Analysis
- Performance and Asset Management Software
- Financial and Operational Data Benchmarking
Financial Modeling Project Experience
Intertek has performed several evaluations of power plant asset acquisitions. In these projects, we supported our clients in evaluating the current condition, projecting future operating, maintenance, and capital budgets, and assisted in evaluating various operating scenarios to ensure a financially feasible project. Our staff works closely with the buyers of these aging facilities to help determine the current condition of the equipment, estimate future costs, recommended future capital improvement possibilities, and identifies potential potholes which could adversely impact their financial returns. Our Technical Due Diligence experience includes:
- Coal and Gas Steam Fired Power Plants
- Combined Cycle Power Plants
- Biomass Power Plants
- Energy Storage
- Wind Assets
Intertek has extensive experience identifying and estimating the costs of power generation.
- Our staff is highly experienced and well versed with:
- Power plant component damage mechanisms and failure
- Component/unit reliability modelling
- Component aging
- Capital and O&M accounting and how to associate costs to damage and unit reliability
- Relevant industry databases
- Statistical modelling, unit commitment and production cost analysis
- We have extensive experience working on utility projects, as discussed earlier.
- We know how to take sparse data and utilize it effectively.
- We advise on design improvements, equipment upgrades/replacement and operating process improvements to ensure your plant operates more efficiently and reliably.
- Asset Life Optimization and assessment of future capital and maintenance costs, stranded costs and dispatch
- Several technical papers published and cited in renowned journals and publications
- We manage one of the largest industry databases of utility operations, design and financials.
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