Business plans of projects constructions and modernization of power and distribution systems

The total energy system of Ukraine is characterized by the presence of almost all types of generating capacity. The preferred fuel for thermal power plants (CHP) of Ukraine, which constitute more than 50% of existing capacity is coal, but as an auxiliary fuel it is used natural gas, fuel oil and the possibility of using alternative fuels.

Business plans of projects constructions and modernization of power and distribution systemsBusiness plans of projects constructions and modernization of power and distribution systems

The power system of Ukraine has extensive network of large power of trunk as well as distribution value. Depreciation of the active part of the funds in the power sector had reached 60-65%, including in rural distribution networks - over 75% and 15% of the capacity is fully exhausted their resource and can not be restored.  An enormous debt to upgrade power facilities, outdated, both physically and mentally has accumulated.

Figure 1 - The energy system of Ukraine
Figure 1 - The energy system of Ukraine

Often there are questions of reconstruction, building, upgrading of existing facilities, as well as plans to build new production and distribution systems.

Business plan of investment project includes the analysis of the actual situation in the industry, the financial model of business process is built including the inflation factor, trends and projected changes in the tariff policies, and, including the structure of consumers for each object and scheme of distribution and sale of electric power (Fig. 2).

Figure 2 - The marketing component of the business plan in the power
Figure 2 - The marketing component of the business plan in the power

Based on the planned power generation capacity of the enterprise, taking into account market trends and pricing policies the long-term forecast revenue of he project is drawn up.

Specialists of “RICC” Ltd. assess the value of investment capital into the project and draw up a plan of operating expenses on the project: staffs plan with salaries and accruals, the cost of raw materials, payment for services, etc.

Next the construction of Cash Flow and calculation of key performance indicators of the project IRR, PV, NPV, PBP, DPBP are carried out.

Figure 3 - Structure of the financial model for developing a business plan of the investment project in the electricity
Figure 3 - Structure of the financial model for developing a business plan of the investment project in the electricity

“RICC” Ltd. offers its services to develop business plans of investment projects in power engineering, training and maintenance of the projects during the period of fundraising and implementation. We also offer our services in related industries, such as calculation and analysis of construction and operation of greenhouses using a secondary heat produced when generating electricity.