13 August 2012

Turkish privatization Agency recently reannounced  lumpsum sale of 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.

Plant Owner is  EUAS (Electricity Generation Co. Inc., Turkey) Initial installed Power is  1120 MW (92x8GT+4x96ST )- with later upgrading, plant now can generate 1154 MWe at peak loading.

Generation Capacity is  7840 GWh/year.

Start up date is  24.11.1985 ~ 13/04/1989 built by ABB-Enka consortium.

Number of Units are 12.

Fuel is  Russian Natural Gas from West pipeline.

Gas Turbine manufacturer is BBC of Mainheim, Germany.
 
Steam Turbine Manufacturer is BBC of Mainheim, Germany.

HRSG Manufacturer is CMI of Belgium.

Plant has longterm 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 Sm3, which means 10 Us$ per MmBtu, that is 7 UsCents fuel cost per kWh. 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$ annually at 8000 hrs per year expected availability. For 3 yrs payback you can presume that Hamitabat 1120 Mwe gas fired combined cycle power plant may have an upfront face value at 560m Us$. If you wish to buy 1120 Mwe Hamitabat gasfired combined cycle power plant, at 3 years of payback at 33% IRR, be prepared a figure not more than 560 m Us$ on 19th Oct 2012 If you prefer to have 4 yrs payback, with approximately 25% IRR, then your price could be 720m Us$ for 1120 MWe Hamitabat gas fired power plant on 19th Oct 2012.

We may presume that Hamitabat 1120 MWe gasfired power plant sale price could be between 540-720m US Dollars on 19th Oct 2012, for expected payback period of 3 to 4 years. All above are ball park estimations without long term financing/ banking costs, any upfront charges, Please also do note that we have evaluated with the available information. Detailed informations on latest efficiencies, stack emissions etc. will be disclosed to interested parties who would purchase the tender documents and signed the confidentiality  agreements. We shall be too pleased to receive your comments.

Thank you &  best regards.

*Haluk Direskeneli is an  Ankara based Energy Analyst.