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Case Study for Valuation of Thermal Power Plant

By December 26, 2023June 17th, 2024Case Studies1 min read
Thermal Power Plant


A Thermal Power Plant in India, operating for over 28 years, has an installed capacity of 500 MW, strategically located with efficient access to fuel and transmission infrastructure.


Consistently operating at full capacity, regular maintenance, and upgrades conducted. Primarily coal-fueled with reliable supply contracts. Measures implemented for operational efficiency and emission reduction.

Key Questions:

  • Will the Plant continue operating?
  • Will there be profit or positive revenue?
  • Are alternative power plants more economical?
  • Decision to Buy, sell, or hold?


  • Continuous demand due to the Plant’s monopoly in the region.
  • 100% market share with no competition.
  • Well-maintained plant, expected to remain operational.
  • Positive revenue indicated by Discounted Cash Flow (DCF).
  • Outperforming similar plants in capacity, efficiency, and financial performance.


This Case Study provides a comprehensive framework for evaluating the Thermal Power Plant’s Valuation, considering operational, financial, and market factors.


Read More: Valuation of an under-construction commercial project by Discounted Cash Flow (DCF)