Energy Efficiency Audits and Training
K&M was engaged by Hagler-Bailly (under contract with USAID) to prepare a policy and institutional analysis report and an industry profile report. In addition, K&M identified up to eight industrial plants for participation in the industrial energy efficiency program. At each plant, K&M performed the following technical due diligence services: preliminary energy audit, energy management training, equipment procurement, energy management implementation and seminar paper.
K&M was engaged by USAID to work with the Russian Ministry of Energy and Fuels and the national utility as part of the company’s leadership of the Joint US-Russian Investment Promotion working group. K&M evaluated power sector investment opportunities as well as trained Russian counterparts in project evaluation methodologies. K&M’s scope of work included: detailed evaluation of four proposed power projects: Krasnodar (1200 MW Combined Cycle in the North Caucasus), Beloporozhskaya (130 MW Hydro Project in Karelia in the Northwest); Urengoi project (950 MW Thermal Plant in Northern Siberia), and Cherepovets Transmission (750 kV transmission line); training workshops in procurement and privatization issues; evaluation of a private power development group in Russia and their current projects for foreign investment; promotion of investment with multilateral banks and potential private investors.
K&M was contracted by Amoco to conduct a comprehensive technical and commercial due diligence of the 580 MW and 1079 G/Cal cogeneration dual-fired power plant in Nizhny Novgorod. K&M’s technical due diligence covered: review and evaluation of the plant: visual inspection of the plant, equipment condition, configuration, and operation; assessment of the unit and plant efficiencies based on actual instrument readings and real-time data during site visit; review plant O&M practices and control systems; and assess options for upgrade/repowering and maximizing efficiency. K&M’s commercial due diligence included: sensitivity analysis using financial models tailored for each of the project structuring options considered by the client; developed a project strategy and structure which included risk analysis and risk mitigation techniques; and regulatory analysis.
K&M was engaged by KMR Power Corporation for the 150 MW electrical, 600 t/hr. steam capacity combined cycle cogeneration power plant being developed on an Independent Power Project basis for the Magnitogorsk Metallurgical Works (MMK) in Magnitogorsk. K&M’s scope of work included technical and financial due diligence, and EPC contracting. Technical due diligence work covered: comprehensive assessment of the facility’s capability to perform with respect to the project’s capacity requirements, environmental conditions and according to generally accepted engineering standards; comprehensive technical evaluation of the project agreements; and evaluation of power system interaction and grid compatibility for transmission line load flows. K&M’s financial due diligence included developing the financial and tariff model for the project. K&M’s work on EPC contracting included: developing project’s technical specifications, drafting EPC contract, assisting with permits, competitively procuring and negotiating EPC contract.
K&M was engaged by KMR Power Corporation for the 240 MW, 300 Gcal/hr. heat capacity circulating fluidized bed (CFB) plant for the Zapsib Metallurgical Works (Zapsib) in Novokuznetsk. K&M’s scope of work included technical and financial due diligence, and EPC contracting. Technical due diligence work covered: comprehensive assessment of the facility’s capability to perform with respect to the project’s capacity requirements, environmental conditions and according to generally accepted engineering standards; comprehensive technical evaluation of the project agreements; and evaluation of power system interaction and grid compatibility for transmission line load flows. K&M’s financial due diligence included developing the financial and tariff model for the project. K&M’s work on EPC contracting included: developing project’s technical specifications, drafting EPC contract, assisting with permits, competitively procuring and negotiating EPC contract.
K&M served as transaction advisor for the proposed 900 MW natural gas-fired combined-cycle private power project in Krasnodar. This assignment involved extensive institutional development and reform components, which would support initial steps toward establishing competition among generating plants. This project was envisioned as one of the first power sector projects in Russia to secure a loan from the World Bank ($515 million), and one of the largest Independent Power Projects (IPP) in all of the FSU and Eastern Europe. K&M developed the $818 million project financing plan and risk strategy, structured the roles of the participants in the transaction, developed a corporate plan for the new generating company, drafted the project agreements, analyzed all factors affecting private investment including fuel supply options, pipeline transportation systems and pricing, reviewed Kubanergo’s (the regional utility) commercial operations and reviewed the local, regional and federal regulatory practices as they affect the structuring plans and plant operations.
K&M was engaged by the Korean Electric Power Company (KEPCO) to complete due diligence review to determine feasibility of the proposed 100 MW simple cycle, gas-fired IPP located near the City of Tomsk, Russia. The project planned to use natural gas as the primary fuel, and gas condensate as backup. In addition to the power plant the project scope included gas production and treatment facilities and a 60 km supply pipelines between the gas treatment facility and the power plant. K&M developed project performance and cost estimates and performed economic analysis considering two options: project financing and corporate balance sheet financing calculating the revenue stream based on the electricity tariffs in the region.
K&M provided Owner’s Engineer services to Raytheon and the U.S. Department of Energy for the construction of a district heating plant under the Zheleznogorsk Plutonium Production Elimination Project (ZPEP). ZPEP was a cooperative effort between the United States and Russia to reduce the threat of nuclear proliferation by shutting down the plutonium production reactor at Zheleznogorsk and replacing it with a new coal-fired district heating plant to serve local residential and industrial consumers.