Sign Up – IPP Financial Model
Welcome to the IEC IPP Financial Model which is a screening tool for IPP power project economics.
The Model allows Users to quickly enter technical, fuel, O&M and financial inputs for a power project and determine the levelized tariff (ie. the fixed price per MWh that the plant would need to charge over the project life), in order to meet the target hurdle rate.
Some guidance is provided on key inputs but Users should note that assumptions can vary widely between projects. Upon request, IEC may assist Users with further advice but the selection of input assumptions is ultimately the User’s responsibility. Users should also be aware that the Model makes some simple assumptions regarding certain construction, operating and financing characteristics eg. mortgage-style debt, no price escalation, no plant degradation, etc
In addition to calculating a tariff, the Model can also be used to calculate annual fuel consumption, carbon emissions, fuel netback values and project returns. The Model is very useful for quickly determining the impact of changes in heat rate, fuel cost, capex, taxes, debt, etc. on project returns or tariffs.
Based on IEC’s experience, the Model generally delivers an answer that is accurate to within a few percent of the result that might be obtained using a more sophisticated financial cash flow model. Nevertheless, “real-life” projects are usually complex and Users are advised that the Model should be used for screening purposes only.
To use the Model today, sign up for a free 7-day trial period. You will be asked to enter your payment details but will only be charged if you do not cancel during the trial period. If you decide to cancel – for any reason – just go to My Account, select Payment methods and Delete your card information. Otherwise, after 7 days, you will automatically be billed AS149 + GST (if applicable) for a 1 year subscription.
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Since the start of the Industrial Revolution, anthropogenic CO2 and other greenhouse gases have warmed our planet by around 1.0°C. In 2015, upon signing the Paris Climate Agreement, all nations around the world set themselves the goal of limiting global warming to below 2.0°C (preferably <1.5°C) compared to pre-industrial levels. Climate scientists now almost universally agree that, once the 1.5°C limit is breached, our planet’s climate will experience dramatic changes.
In 2018, the IPCC Special Report on Global Warming concluded that our planet’s atmosphere can probably absorb no more than 420 gigatonnes (Gt) of additional CO2, if we are to stay below the +1.5°C level. Around 42Gt of CO2 is currently emitted globally each year (equal to 1332 tonnes per second) by human activity, which means that the 1.5°C budget is expected to be exhausted by 2028. Once we hit that threshold, there is no going back and there is no Planet B. A sea level rise of at least several metres will be inevitable, food production will be severely threatened, rainfall and snow-melt patterns will be drastically altered, the current high rate of species extinctions will rise rapidly and extreme weather events, floods, droughts and forest fires will increase in frequency and intensity. High temperature and humidity will combine to make much of Asia, Africa and the Americas practically uninhabitable. If expected self-reinforcing feedback mechanisms kick in (eg. melting ice sheets and arctic permafrost), these changes will sharply accelerate and become irreversible. Humans have not faced such an existential threat for 75,000 years (when we nearly became extinct).
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