Power Project Evaluation, Economics and Development

COURSE FORMAT
The course will be held in a highly interactive workshop format with presentations, case studies, examples, exercises and group discussion sessions.

PRE-COURSE QUESTIONNAIRE
Pre-Course Questionnaire will be sent to you prior to the workshop to complete. Professor Richard will analyze in advance and address the issues during the course.

CERTIFICATE OF ATTENDANCE
Upon the successful completion of this course, you will receive a Certificate of Attendance bearing the signatures from both the Expert Trainer and the Course Organizer. This Certificate will testify your endeavour and serve towards your professional advancement.

Day 1: Markets vs Regulation: Trends and Issues across the Region

1) Supply and demand

2) Fuel markets

3) Competition and financing issues

4) Regulatory & policy issue

After discussing how these “four lenses” apply across the region generally, we will apply them to two countries more specifically, such as Vietnam and the Philippines– two dynamic markets accounting for significant current and prospective commercial activity. We would take a particularly close look at solar vs gas vs coal in the Philippines, and how the existing seasonality of hydro generation drives much of the future electricity industry in Vietnam.

Day 2: Identifying and analysing different types of value drivers and risks

The structure of Day 2 would be, in so far as practicable, built around actual examples or reasonably realistic scenarios that affect generation investors and stakeholders. It would reflect on and further illustrate some of the concepts discussed during Day 1.

1) Exposure to dispatch risk – when does it matter, what does it mean.

Examples and Case Studies from China (RE curtailment),Philippines (location-specific pricing), and PPA markets

2) Gas vs Coal vs Solar – looking at the economics of dispatch, the value of energy produced and the value of flexibility and responsiveness.

Mini-exercise to work out the challenges that arise when pricing the operation of an LNG import terminal or when determining what type of contract for gas that a power station should consider

3) Valuing a power station at the end of its contract – what is the value of a power station that could continue to run but whose contract has expired?

Day 3: Case study on the economics of optimal integration of natural gas

• Highlights the value of flexibility
• Considers the evolving experience with gas supply contracting and gas infrastructure investment as gas markets develop;
• Analyses the impact on natural gas demand of different mechanisms for reducing CO2 emissions;
• Illustrates the tariff impact of restricting the construction of new coal-based generation
• Determines how sensitive gas volumes are to assumptions concerning future costs and performance characteristics of solar panel technology; and
• Draws possible implications for LNG terminal operations and pricing of terminal related services.

We would draw on a combination of experience in the Philippine market where a number of stakeholders are exploring or developing gas-based solutions and markets such asVietnam, where gas resources exist but infrastructure and commercial arrangements are not fully developed. We would also consider the implications of Singapore’s efforts to establish an LNG hub.

Day 3 would end with an open Q&A session with an opportunity for participants to have flagged issues ahead of time for special discussion.