Construction and financing for steam power plants (SPP)

Construction and financing for steam power plants (SPP)

Construction and financing for steam power plants (SPP)

Published May 26, 2022 


67 Articles

Construction and financing for steam power plants (SPP)

Modern steam turbine power plants that run on coal, natural gas and other fossil fuels will remain in demand in the coming decades, despite the growth of renewable energy sources.

Being a kind of bridge to the future, such energy facilities continue to provide the population and industrial consumers with cheap energy. Today, energy companies are forced to solve numerous technical, financial and environmental problems, meeting the growing demand for electricity and flexibly responding to load fluctuations caused by the introduction of RES. The construction of steam power plants with high efficiency and minimal emissions can improve the situation by increasing the competitiveness of thermal energy.

According to the EIA, the average age of thermal power plants in the United States today reaches 40 years. In some countries this figure is even higher. By 2050, the share of fossil fuels in the global energy mix will be about 50%. Under these conditions, the efficiency of TPPs will be critically important for a sustainable future. It is obvious that numerous steam power plants today require deep modernization.

Havelet Finance Limited offers comprehensive professional services in the energy sector:

  • Pre-investment research.
  • Financing large energy projects.
  • Engineering design of thermal power plants of all types.
  • Construction of steam power plants under the EPC contract.

    •  Modernization of energy facilities.

We are successfully implementing numerous projects in Europe, Latin America, North Africa and the Middle East. An impeccable reputation, 30 years of practical experience and satisfied customers in many countries are the best confirmation of our commitment to innovation and high service.

Our specialists are ready to provide you with any services related to planning, financing, development and management of TPP projects

Equipment and operating principle of a steam power plant

Classic steam power plants use heat from fossil fuels such as coal, gas and petroleum products as an energy source. Recently biomass has become a promising type of renewable fuel.

The principle of operation of steam turbine power plants is considered simple. The fuel is burned in a boiler that generates thermal energy, which is used to generate steam from the water circulating through the piping system. This steam drives a steam turbine and converts thermal energy into mechanical energy, which generates electricity in an alternator.

The construction and financing of a steam power plant is a complex multi-stage process that requires time-consuming and expensive research, approvals and permits.

These objects are distinguished by an impressive area. Thermal power plants require extensive infrastructure development, and in many cases leave a deep ecological footprint. Thermal power plants are usually located close to seas, lakes or rivers in order to make it easier to obtain large volumes of water to cool equipment. These facilities can operate on coal as well as on fuel oil and natural gas. Typically, fuel oil arrives at TPPs through pipelines and is stored in tanks. Natural gas, in turn, is supplied through a special gas pipeline. Solid fuels are usually delivered by rail, which requires the construction of additional infrastructure.

During the engineering design of steam power plants, it is important to select the most suitable equipment and design the layout. Consideration should be given to the planning of components such as cooling pond, pipelines, railway and unloading station, sludge storage, and so on.

Engineering design of steam power plants step by step

The implementation of a TPP project includes several stages that require a certain amount of time and resources. Research, collection of accurate technical and geological data, project approval. All of this plays an important role in the final success of any energy project. Engineering design of steam power plants includes the following stages:

  • Research. Havelte Finance Limited provides a full range of financial, legal, marketing, technical, geological and climatic studies for your project.
  • The concept of the project. Our specialists analyze possible energy generation technologies, choose the best options for the power plant, plan work taking into account various factors.
  • Preparation of technical documentation. The results of numerous studies, the rationale for the choice of the construction site and other data become the basis for technical documents containing a complete description of the power plant from A to Z.
  • Purchase and installation of equipment.

We partner with leading electrical and turbine suppliers to make your projects better

Construction and financing for steam power plants (SPP)

Modern engineering is not limited to the technical side of the project. Our company makes every effort to bring your investment plan to life. Thermal power plants, despite the latest advances in exhaust gas and wastewater treatment technologies, pose a certain threat to the environment. For this reason, competent planning requires prior approval of the project with the local community and authorities of a particular region.

Our team takes on the responsibility of negotiating with a variety of stakeholders, ensuring a smooth and seamless project completion for the customer.

Steam Power Plant Construction Cost

Many companies are interested in the cost of engineering design and construction of steam power plants. The total cost of a project is always determined by a combination of factors, which we will discuss below. Any figures without analysis of a specific project should be considered approximate.

In general, a steam power plant with a capacity of 500–700 MW can cost about 500,000 euros per MW. If construction is carried out under the EPC contract (single general contractor), this figure increases.

Major investment costs include:

1}Civil engineering.

2}Boiler and steam generator installation.

3}Construction of a water cooling circuit.

4} Installation of a turbine group (steam turbine and generator).

5}Ancillary equipment and control systems.

6}Construction of an electrical substation.

7}Laying of power lines. Significant investments are also associated with research,

 Engineering design, obtaining permits, construction of a cooling pond, etc.

When assessing the cost of building a steam power plant, internationalization factors (project implementation in another country) should be considered. In addition, any construction under an EPC contract will be slightly more expensive due to the general contractor’s margin, which is usually 10%. It is important to take into account the factors of hiring local staff in the host country, the cost of obtaining permits and licenses, the cost of importing equipment and building materials (import taxes, travel costs and customs duties).

Havelet Finance Limited will help you calculate the cost of the project based on all of the above factors. With extensive experience in the construction of power plants around the world, we will implement your project in the optimal time frame with minimal costs.

Our team is actively involved in financial modeling, advising foreign customers on project financing. Through cooperation with major banks in Spain, we also help our clients in obtaining loans for the construction of steam power plants and other large energy facilities.

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