Risk Assessment For Yantan Power Plant Extension Project

Yantan Power Plant is the fifth level of Hongshui River series of hydraulic power stations. It is located in Yantan Zhen, Dahua County of Guangxi Zhuang Autonomous region. The first phase of construction installed 4 sets of 302. 5MW mixed flow hydraulic turbine generator units with installed gross capacity of 1210MW. They were all buildup and put into production in 1995. The ultralow electric price severely restricted the development of the company. Propose the extension project, to add two more generating units at the total capacity of 600MW, is an opportunity but also a challenge to the company.At the present increasing globalization and informatization background in the world, the flows of resources, technology, human resources and information are sped up as well. Therefore, in the changing world, to discover the investment risks and challenges in terms of policy, economy, power market, investment management and human resources, as well as to analyze the risk source and cause, to predict and control the risks, and to ensure the invested project successfully be put into production, are significant issues to the future development of thecompany.This paper started with the theory of risk management, by integrating thecharacteristics of extension project, and through the understanding and analysis of the internal and external conditions of Yantan project, identified the potential risks through the investment, construction and production periods. It also qualitatively and quantitatively analyzed those risks by utilizing techniques and methods in risk management theory. Based on the estimate of the risks in this extension project, the paper also provided information for project risk control. According to the 6 control measurements in the risk management, the paper brought forward control strategies for potential risks based on the analysis of possibilities and sources of the risks. This may reduce the probabilities of the occurrence of the risks and minimized the damage and expenses. Therefore the paper provided some help in the risk management for the extension project.