Cost Control Research On Power Plant B Denitrification Project Based On Project Life Cycle

China’s annual coal consumption required by industry development has been growing, particularly coal consumption by all of the thermal power plants in China account for more than half of the total coal annual consumption in China. After the technical development in recent years, both Chinese coal-fired power plant emission control equipment and technology have reached the international advanced level. The emissions discharge from the power plant has been effectively controlled, SO2 emissions growth has been basically brought under control, but the nitrogen oxide emission has been rising rapidly along with the remarkable increase of energy consumption in China.Therefore, in recent years the Government has issued the mandatory rule on thermal power plant nitrogen sulfur emission requiring the construction of desulfurization anddenitration renovation project for thermal power plants. While the electricity market-oriented reform moves further on which intensified the downward pressure on the tariff, power generation companies (GENCO) not only have to face gradually liberalized, increasingly fierce power-selling market competition, on the other hand must increase investment in technical renovation and environmental protection works. GENCO’s business profit are affected by less power sales and increasing cost, the business situation becomes more severe.Under such circumstance, the investment for the technical renovation project of thermal power enterprises comes under pressure.as such cost control of technical renovation (including desulfurization and denitrification) projects is particularly important. The measures on how to control the project cost become the focus of improving the level of investment in each power plant.In this paper, the power plant B denitrification renovation project is taken as a typical example. Based on the project construction life cycle, this paper discusses factors influencing the project cost before suggesting methods and measures of the project cost control.For the analysis of in-depth study, this paper subdivides the project into four stages:namely the pre-construction planning stage, construction preparation stage, construction stage, project settlement and final stage. Based on a detailed interpretation of factors influencing cost at every stage, through several typical examples this paper illustrates the scheme selection, earned value cost method and other commonly used control methods. Then from the point of view of EPC contractor, from the aspects of project organization, design management, equipment management, construction management, this paper puts forward the main measures to control project cost.To highlight the shining point of this paper, the project decision-making& project implementation preparations are included in the research category of construction cost control, expanding the range of the construction cost control. As a result, the project cost control becomes more comprehensive, with cost control measures being more effective. It also helps to guide on the power plant technical renovation project construction cost control.In the process of writing, due to limited knowledge of the denitrification technology and skills, there is still some discrepancy concerning the scheme comparison, organization and understanding of the construction of data. Also there is still room for improvement on the introduction and application of the methods of cost control.