Economic Effects Of The Fish River Power Plant Expansion Project In Hunan Province Lithium Evaluation Studies

The paper conducted research of economic effect evaluation on the extend project of the LiYuJian power plant based on the comprehensive understanding of the current situation of the electric power industry not only nationwide but also in the provinces of Hunan and Guangdong. With both qualitative and quantitative analysis,some valuable conclusions as well as suggestions are also provided.There are 5 sections in this paper:Section one deals with the analysis of the current situation and development trend of the electric power industry in China. Problems that exist in the industry and the evelopment direction of the industry is analyzed,abundant analysis and predictions on the future of the industry are also provided.Section two contains analysis on the electric power industry and the electric power market in Hunan province. Firstly,a general analysis on the power resources and the electric power industry in Hunan is provided. After this,a more detailed analysis on several aspects of the Hunan electric power market including social economy,structural situation,consume structure,power consumption,etc. shows the fact that the increase in the power consumption in recent years is mainly due to that in the first industry and residents' daily life. We also draw the conclusion that the ease of the contradiction between demand and supply in the electric power market tends to present the natural principle in that market. Finally,we analyze the benefits the extend project of the LiYuJian power plant do to the electric power market in Hunan province.Section three analyzes the current situation of as well as the problems in the electric power industry in Guangdong province. The necessity and importance of the project for the industry in that province is also put forward in this section.Section four shows the study of the economic effect evaluation on the extend project of the LiYuJian power plant. A economic effect evaluation is a core material of evaluating investment projects,in which the indices being used is also very important as they represent the economic degree of the project. Indices of Invest Return Circle,Invest Return Rate,Net Present Value,Net Annual Value,Internal Return Rate,ExternalReturn Rate,Sensitivity analysis are used in this project and the conclusion that the project brings both satisfactory economic benefit and significant social payback. Section five proposed specific measures for the project of LiYuJian power plant. The strategy and measures against the problems exist in the power plant that are to be adopted are put forward based on the economic effect evaluation.