Turkey: Estimating Value Of Hamitabat Combined Cycle Power Plant – OpEd
Turkey’s privatization agency recently re-announced the lump-sum sale of the 1120 MWe gas fired Hamitabat combined cycle power plant.
It was tendered earlier, but there was only one qualified bidder, not enough to close the sales, so it was cancelled.
Proposals from interested parties are expected on 19th Oct 2012. Bid bond is 15m USD.
Here are the details:
- Plant Owner is EUAS (Electricity Generation Co. Inc., Turkey)Installed Power is 1120 MW (92x8GT+4x96ST )
- Generation Capacity is 7840 GWh/year
- Start up date 24.11.1985 ~ 13/04/1989
- Number of Units are 12
- Fuel is Russian Natural Gas from West pipeline.
- Gas Turbine manufacturer is BBC of Switzerland.
- Steam Turbine Manufacturer is BBC of Switzerland
- HRSG Manufacturer is CMI of Belgium
The plant has long-term ongoing ESA and Gas Purchase agreements, plus treasury guarantee for electricity sales, which will be transferred to the new owner.
In Turkey, imported natural gas price is approx average >400 Us$ per 1000 Nm3, which means 10 Us$ per MmBtu, that is 7 UsCents fuel cost/kWh.
In Turkey, average electricity market price is floating at about 10 UsCents per kwh, while Natural Gas fuel cost is 7 UsCents/ kwh plus we may add 1 cent for O&M including necessary after sales rehab works at the plant.
In conclusion, in Turkey a gas fired combined cycle power plant earns approx average 2 UsCents/ kwh at 8000 hours per year availability.
1120 MWe Hamitabat gasfired combined cycle power plant will earn max 180m Us$ per year at 8000 hrs per year expected availability.
For 3 yrs payback you can presume that Hamitabat 1120 Mwe gasfired combined cycle power plant may have an upfront face value at 560m US$.
if you wish to buy 1120 Mwe Hamitabat gasfired combined cycle power plant, for 3 years of payback at 33% irr, be prepared a figure not more than 560 m Us$ on 19th Oct 2012.
If you prefer to have 4 yrs payback, at approximately @25% irr, then your price could be 720m Us$ for 1120 MWe Hamitabat gas fired power plant on 19th Oct 2012.
In conclusion, we may presume that Hamitabat 1120 MWe gas-fired power plant sale price could be between 540-720m US dollars on 19th Oct 2012, for payback period of 3-4 yrs.
This is a ball park estimation without long term financing costs.
3 thoughts on “Turkey: Estimating Value Of Hamitabat Combined Cycle Power Plant – OpEd”
Please be careful, estimations given in this article are totally wrong. 1-Plant capacity is 1156MW, 6 GTs were upgraded with 4MW additional output 2-There is no info in the article about plant efficiency/heat rate. 3- What about emissions? 4- There must be 250-300millioneuro investment for rehabilitation.
The author sharing his simple comments without correct information.
– What about investmet costs after sale?
– Who will buy the energy from Hamitabat, any guarantee from government.
– fuel cost given in the article is too low such an very old power plant. estimation seems incorrect.
– we know that, emissions too high, needs high costs to reduce NOx.
Hamitabat PP is state-owned and there is no puchasing guarantee for its generation by government.
Further, the PP is the most expensive NG fired PP in Turkey. Former Electricity Generation Planning studies carried out by TEAS (Formerly TEK) shows that hamitabat PP takes place at the medium load level according to economic loading order with Capacity Factor ranging between %15-%40 along planning period.