International Power Business Workshop

This four day energy management workshop is designed to provide international oil, gas and power professionals with an overview of the business aspects of the international power business with special emphasis on the development of combined cycle, gas-fired power plants. The instructional format is a combination of formal lectures and team workshops sessions. IHRDC has conducted this program over 20 times for one of the worlds largest integrated energy companies, with very high appraisal for its content, design delivery and participant experience.

Additional information

Program Type

Key Benefits

  • Introduces the participant to the integrated power business.
  • Provides a practical understanding of the steps required to develop a combined-cycle gas turbine power project.
  • Provides an overview of the key legal, financial, and economics aspects of project development.
  • Encourage participants to work together to collect and analyze data and make investment decisions.

Instructional Format

The instructional format consists of lectures by a respected specialist and team participation in a classic IHRDC power business game. The business game typically takes almost one half of the instruction time and has been highly rated by past participants for its effectiveness in internalizing learning and generating discussion among team participants. This combination of lectures and interactive workshop sessions, has proven to be an ideal way for participants to learn the practical needs of todays international energy markets.

Who Should Attend

This program is designed for energy leaders from broad functional responsibilities: financial, technical, operational, project development, and other professionals, who wish to expand their knowledge of planning, developing, and financing power projects. Because of the workshop format, the ideal enrollment is 25.

Program Location and Schedule

The program will begin on Monday morning at 8:00am and end on Thursday afternoon. Participants may be asked to stay later in the evening to do workshop sessions.

Program Content

Introduction to the Program

Power Industry Structure, Terminology and Units; Overview of the Electric Power Industry; Including Trends in Market Liberalization and Privatization of Assets.

Introduction to Power Generation and Combined Cycle Gas Turbine Plants

Power Generation Fundamentals, Power Plant Terminology, Power Plant Thermal Efficiencies, Combined Cycle Gas Turbine Power Plants: Technology and Costs.

Overview of Other Forms of Power Generation

Coal and Oil-Fired Steam Turbines; Hydroelectric Plants; Nuclear Power Plants; Renewables.

Independent Power Project Players

Developers, Suppliers, Customers and Partners.

Power Project Investment Screening, Selection and Project Development

Project Feasibility; Project Design and Development; Project Economics; Legal and Regulatory Issues; Financing Structure; Risk Mitigation; Project Management Structure: Agreement Linkages, Project Development Phase Activities; Management of Construction and Operations; Typical Project Screening Process.

Project Financing of Power Projects

Debt and Equity Financing; Multilateral Financing; Security for the Financing; Financial Risk Management and Guarantees; The Lenders Perspective; The Financing Process and Costs; Case Study: The Structure of a Recent CCGT Project Financing.

Overview of Transmission and Distribution

Technology and Costs; 50/60 Hz; Synchronization of Plant to Grid; Instabilities; Relationship of Power Generation Costs to Price to Consumer; Economic Tradeoff: Gas-by-Pipe or Electricity-by-Wire; Distribution of Electricity

Power Pools and Least Cost Dispatching

What is a Power Pool? Power Pool Economics and Structure; UK Power Pool; Nordic Market and Electricity Trading; What is an ISO? US Power Pools.

Financing Energy Projects

Fundamentals; Sources of Equity and Debt; Bilateral and Multilateral Financing; Investment Guarantees; Structuring the Financing.

Global Power Trends: Regional Markets

International Power Demand; Changing Structure of the Power Industry By Country; Case Examples of Key Countries in Asia, Latin America, US and UK.

Merchant Power Plants Including Fuel Supply Contracting Issues

Definition; Financial Viability; Projecting Market Demand and Supply; Merchant Plants Financing; US and the UK Merchant Plants.

Major Contracts of an Independent Power Project: Review of Provisions and Linkage

Overview of Power Project Documentation; Joint Venture Structure and Agreement; Fuel Supply and Power Sales Agreements; Project Construction and Operating Agreements; Government Guarantees of Non-Project Risks; Financing Due Diligence, Documentation and the Closing Process.

Workshop

Power Business Game

The Power Business Game consists of the simulated planning, financing, development and operation of a combined-cycle power plant in Sucre, a fictitious country in Latin America. Each team is asked to prepare a business plan for the project which will include a set of decisions with respect to construction, fuel supply and power purchase agreements, EPC and O&M contracts, and financing. Then 15 years of simulated operations occur in a business game environment. The financial results of each team is provided to them for their formal presentation on the last morning. The team with the best performance receives the workshop prize.

The sessions include:

  • Project Description, Management & Market Analysis
  • Project Economics & Proforma Analysis
  • Project Schedule & Management Plan
  • Identifying the Project Risks
  • Reviewing the Financing Term Sheet
  • Design the Project Financing
  • Review the Fuel Supply & Power Sales Agreements
  • Evaluation of Performance & Presentation of Results

Instructors