3. Power stations cost estimate

May 20th, 2010

A large Western company examined possible purchasing of a group of gas-supplied power stations in a certain Russian region. There was a question: What were the prospects of gas supplies to those power stations? What would prices and volumes be?

ERTA Group prepared the forecast of prices and gas production/consumption balance for Russia in general and for a particular region. The situation seemed to be prospective; but, in the end, calculations of cost recovery of the purchased power station were required.

To do this, several questions concerning the electric power market had to be answered:

  • How much did electric power cost for that day and how was its price formed?
  • What market changes were expected, would new generating or consuming capacities be put into operation?
  • How would those changes influence the prices?

In addition, the technical state of the purchased power stations should have to be assessed. To do that, we had to engage the Russian experts, to perform technical audit of electric power generation assets, and to present its results to the management.

We not only assisted in selection of technical experts, but quickly arranged the constructive interactions with them. As a result, the justifiable cost of power stations’ purchasing was calculated.