Turnkey Solution for Power Plants: The new trend in the energy industry I

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by Malaquias Encarnacion

What do you get when you cross more than 100,000 MW available of surplus Power Plants, a well trained knowledge base worldwide, with more powerful IT systems capabilities and resources able to interconnect and cross-reference all kind of stocks around the globe?. <br>You get the commoditization of non-traditional industries into less complex areas reachable for most of common people. Now it's the turn of the Energy industry, now featuring Turnkey Power Plants.<br>The high availability of surplus Power Plants along with stronger IT systems, have opened the doors to opportunities for developing a new very-profitable industry: Turnkey Solutions for Power Plants.<br>When digging into the Surplus Power Plants database, we find all kind of equipment available:<br>?Brand-new Power Plants</a><br>?Used Diesel Generators for sale and for rent</a><br>?New and used gas turbine generators</a><br>?Used steam turbines for sale</a><br>?Custom and used Barges for sale</a><br>?Parts and spares for power plants<br>Those equipment are found used (from 1 month to 80 years old), New (or "as new"), from cancelled-orders, advance or advanced orders, refurbished/overhauled or "as-is, where-is" (at the purchaser risk). By adding the rights services and contractors, then you get turnkey solutions for power plants.<br>In according to Mike Craige, a combustion, energy and steam specialist, the reasons for used generator and surplus power plant becoming available are varied:<br>?Political<br>?Environmental<br>?Change in fuel strategy or availability<br>?Over-estimated load (demand) growth or more economical power available<br>?Industrial clients, IPPs and utilities with financial problems<br>?Over-estimated sales forecasts (in case of some 'advanced-order' equipment)<br>Critical factors in the energy industry such as availability and rapid delivery are the main advantages when considering turnkey solutions for power plants. But there are additional advantages when working with surplus capacity.<br>In according to Mr. Craige, the greatest advantage of utilizing turnkey solutions for power plants is of course the capital cost, but immediate availability also means that the equipment can be commissioned and online, generating power (and steam/heat) within a very short period of time, leading to considerable savings in a number of areas:<br>1.Construction costs is reduced due to lower overheads during the shorter period<br>2.Interests During Construction (IDC) is reduced in direct proportion, and<br>3.The developing company's overheads in a IPP situation are also minimized to the extend that "up-front" profit can be increased by inflating the costs of the installed plant in line with the maximum installed cost, which will satisfy the lead financing agency (albeit within the realms of "transparency").<br>4.In addition to these is the benefit of early revenue<br>The other significant, and possibly the most important feature of utilizing such immediately available and surplus equipment is that the owners may often be willing to retain part equity in any viable IPP development, thereby making overall project finance more accessible. Likewise, a wider vision of many financial institutions along with a higher knowledge about the energy industry is getting more access to funds and resources to develop projects based on surplus capacity and/or turnkey power plants.<br>Also, with the rising oil prices and all kind of new economic restrictions, it shows up a new modality that's getting a lot of support from developers and financial institutions: Retrofitting your current units to fire Natural Gas or Coal. That's the subject of the next article.<br>In the other hand, new IT systems with higher capabilities and interoperability features are letting the developers to be as creative as possible when designing the business infrastructure. Also, the open access to APIs, add-ins, public scripts, DB, open source, surplus IT resources for rent (Amazon), surveys, organizers, Search Engine Optimizers, Keyword trackers and plenty of other tools than can be easily integrated to any business model on IT system.<br>Finally, the access to big Web 2.0 tools such as Social Networks and Social Bookmarking, free video posting and Wikipedia opens a huge universe of possibilities and unimaginable reach to any business models that relays on information, contacts or referrals.<br>In the near future, it's expectable that most of the work required to develop an efficient easy-to-use business infrastructure, will be on choosing the right tool (either open or paid).<br>An example: TurnKeyMasters.Com<br>TurnKeyMasters offers full or partial turnkey solutions for power plants</a> to developers, owners and operators of projects from 4-1,200 MW.<br>TurnKeyMasters has designed, along with the Invest Prix Group, a hybrid online-offline, global-local marketing campaign to promote new energy projects, focused on specific areas of best profitability. TurnKeyMasters tracks the sources of every deal generated to search for patterns and trends and continually monitor marketing ROI's and SEO strategy results<br>TurnKeyMasters keep tracking of all major internet search, second-tier, local and industry-specific directories, to find all new important suppliers and stocks, and check for trends in the searches done over the internet.<br>All web search data from over 200 search engines world wide is evaluated. TurnKeyMasters also has access to the largest web search database that contains over 36 billion searches. All this searches are also evaluated on many language specific databases sourced from regional search engines and users from those regions, including: Australian, Canadian, Dutch, French, German, Italian, Norwegian, Polish, Portuguese, Spanish, Swedish, UK and with plans to get many others.<br>TurnKeyMasters also tracks all major business directories over the web, yellow pages, eMarkets, B2B, articles, blogs, Social Networks, Bookmarking networks, forums, newsgroups and press releases.<br>We try harder, to get what "The Project" needs.<br>Malaquias Encarnacion is Project Director with the Energy Storage team of AES Corporation and principal developer with TurnKeyMasters (http://www.turnkeymasters.com</a>). His background is on Mechanical Engineering and holds an MBA. He cen be reached at malaquias@turnkeymasters.com

About the Author

Malaquias Encarnacion is Project <br>Director with the Energy Storage <br>team of AES Corporation and <br>principal developer with <br>TurnKeyMasters (http://www.turnkeymasters.com</a<br>>). His background is on <br>Mechanical Engineering and holds <br>an MBA. He cen be reached at &lt;br>malaquias@turnkeymasters.com

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