Power Enterprise Project Financial Evaluation System

With the constant progress of economy globalization and global economy diversification as well as its rapid and stable development, China has already fully accessed into the development of the global economy, and increasingly occupies a pivotal position.Because of the steady economy development, Chinese enterprises' demand for electric power has increased dramatically. Meanwhile, with the improvement of people's lives, household appliances have greatly entered families, which enhanced the demand for electric power. Since "Power crunch" started to spread China from 2003, the phenomenon of "power limitation and power cuts" appeared in many places, and the contradiction between power supply and demand was suddenly manifested. All the investors sped up the construction of power plants, which sprang up like mushrooms around the country. As a result, the Financial Evaluation to the construction of the electric power projects is imperative.As enterprises, electric power plants aim at producing benefits both economically and politically. In other words, building enterprises considers not only from the economical benefits point of view, but more important from the views to benefit the local circumstance, employment, environment protection, and taxation, etc. Furthermore, building a power plant usually spans as long as three years or more, needs lavish investment and has long-term effect on the environment and water resource. All of which justify the high financial risks, high administration risks and high total risks. Therefore the Financial Evaluation to the power plant projects is urgently needed.This paper, according to the process of building a power plant, starting from the significance of establishing the Financial Evaluation System in the Electricity Generation Group, recommends the procedure of financial evaluation as follows: Firstly, to research the pre-project, process and operation evaluations, then combined with other methods arrives at a conclusion. Employing the evaluation methods, the conclusion conjoins with appropriate performance estimation and concrete demonstration finally draws a conclusion to meet the expected project targets of the power plant projects eventually.