Dismantling business in India augurs well for the service providers in the current pretext wherein about half of the country’s thermal power plants are aging and exceed 25 years of useful plant life. This means collectively almost 30% of the country’s installed capacity is up for dismantling and a good proportion of these power plants are fast approaching 40 years beyond which operating such power plants would not make any business case for the operators. Infact, 188 thermal power plants of the total 396 thermal power plants in the country are more than 25 years old. The business case for such power plants to be dismantled arises due to the fact that the efficiency of such power plants decrease in the levels of close to 40% of their prime operations.
Key Queries Resolved
- What would be the typical cost matrix and salvage value for decommissioning of thermal power plants ?
- What would be the opportunity for turnkey solution providers under decommissioning services ?
- What would be the opportunity track for equipment suppliers in chimney demolition ?
- What would be the opportunity track for equipment suppliers in demolition of boiler house ?
- What would be business potential for players in industrial dismantling ?
- What would be the business case for financially weak SEBs ?
- What would be the salvage gains for private players ?
- What would be the recovery gains to the players from recycling and sale of scrap ?
Business Case In Decommissioning Thermal Power Units
- Government of India planning to replace old 25-40 GW coal power plants with new supercritical ones , which likely to pool opportunity of INR 1.6 Trillion
- Ageing thermal power plants in India could mean good times for companies in the dismantling business
- 11GW of existing old thermal capacity proposed for replacement , with an anticipated business case of close to USD 9.8 Billion
- Of the total installed coal fired capacity of about 194 GW , ~ 58 GW is from the plants that are operational for more than 25 years and shall seek replacement soon , hence a clear cut business case of more than USD 50 Billion exists if all the 58 GW is proposed for getting decommissioned
- Power plant developers are focusing on selling their defunct units and scrap at a competitive price and that too in short span of time