ENGINEERING JOURNAL CHIANG MAI UNIVERSITY

Volume 25, No. 03, Month DECEMBER, Year 2018, Pages 222 - 232

Economic value added analysis for electricity generation field

Peerawat Chaimaneerat and Jeerapat Nagoprasertwong

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This research is an application of the Economic Value Management methodology for Electricity Generation Field. It is a tool to measure financial performance and corporate management systems. The indicators are Economic Profit by comparison between Net Operating Profit after Tax and Cost of Capital. The assumption is the revenue from the internal power purchase agreement which are Availability Payment and Energy Payment. The methodology for determining Economic Value Added plan is Fuel Surcharge plan, Availability Improvement plan and plan to decrease control costs, calculating the weighted average cost of capital for electricity generation field which is 6.43% with the economic tax 20% and analyzing the economic profit of the sample of power plants in the 5 units such as, combined cycle power plant A and D, Coal fired power plant B, hydro power plant C, Thermal Power plant E which using fuel oil and palm oil. Based on the results, in 2015 the actual Economic Profit is higher than estimated Economic Profit 3,617 million baht resulting from 3 strategic improvement plans of 753 million baht. Meanwhile, comparing the actual Economic Profit in 2015 and 2016, the overall electricity generation field decreased 512 million baht and Power plants A decreased 64 million baht, Power Plant B increased 1,312 million baht, Power Plant C decreased 57 million baht, Power Plant D increased 91 million baht and Power Plant E decreased 161 million baht. In conclusion, Power Plant A, B, D should focus on strategic planning to increase Economic Value, Fuel Surcharge and Availability Improvement while Power Plant C should focus on increasing Availability Payment Outside Contract Availability Hour and decreasing control costs and extend the results of Economic Profit study to other Power Plants in Electricity Generation Field.

Keywords

Economic Value, Economic Profit, Weighted Average Cost of Capital, Fuel Surcharge, Availability Payment Outside Contract Availability Hour

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