A combined heat and power (CHP) plant produces electricity and heat simultaneously, and its equipment is a capital-intensive complex of boilers, turbines and generators. Independent appraisal of CHP plant equipment is ordered for fixed asset revaluation and financial reporting, collateral in financing arrangements, sale of the facility, and valuation within a whole operating enterprise. The Kanzas company appraises power generation equipment drawing on its practice with the energy facilities of industrial enterprises.
Who orders a cogeneration plant appraisal
Clients include generating and heat supply companies, district heating operators, industrial enterprises running their own CHP units, banks and investors. Typical purposes: revaluation of fixed assets under national accounting standards or International Financial Reporting Standards (IFRS); collateral for modernisation financing; sale or contribution to charter capital; insurance and documented loss assessment. Many Ukrainian industrial enterprises operate captive CHP plants within their production complexes, and in our practice such equipment is appraised together with the rest of the enterprise's asset base. Reports follow Ukrainian national valuation standards, methodologically consistent with International Valuation Standards (IVS); the team includes valuers holding RICS and TEGoVA (REV) certifications.
Principal equipment of a CHP plant
Steam and hot-water boilers; steam and gas turbines; electric generators; heat supply equipment — network water heaters and boilers feeding the district heating circuit; fuel handling facilities; water chemistry and treatment; electrical and switchgear equipment; heat networks and pumping stations; automation and control systems. Power generation equipment has long normative service lives, so the decisive inputs are actual operating hours, the capital repair history and the remaining life of the principal components.
Specifics of valuing power generation equipment
Energy equipment is largely project-specific, so the secondary market is limited. The appraisal weighs: the individual wear level of each unit — boilers, turbines and generators have different lifecycles and different repair histories; fuel efficiency — outdated fuel-hungry equipment depreciates through functional obsolescence; the operating regime (base load or peaking). The cogeneration nature of a CHP plant means that at the level of the complex, value is tied to income from selling both electricity and heat — a two-product cash flow that the appraisal reflects explicitly.
Methodology and inspection arrangements
The cost approach is primary for power generation equipment — replacement cost of a modern equivalent, less physical deterioration and functional obsolescence; the market (comparative) approach applies to standard machinery such as pumps and electrical equipment; the income approach operates at the level of the station as a complex, through the cash flow from energy sales. Ukrainian law requires physical inspection and identification of the assets by the valuer: the actual condition of boilers, turbines and generators, operating hours and repair dates are documented against technical records. Site work in any region of Ukraine is arranged through our staff and regional representatives, without the client's travel.
Questions and answers
Can a captive CHP plant be appraised within an industrial enterprise? Yes. Captive plants are routinely appraised within the enterprise's whole property complex alongside the main production; where needed, the CHP equipment is carved out as a separate fixed asset group.
What affects the value of power generation equipment the most? Actual operating hours, the capital repair history and the remaining life of the principal components, together with fuel efficiency. Two identical boilers with different operating histories can differ substantially in value.
How much does a CHP plant equipment appraisal cost? We quote the fee and timeline after receiving the equipment list with technical specifications and the purpose of the appraisal. Based on this, we assess the scope and agree a fixed price and schedule — before the contract is signed.
Send us your equipment list by email at [email protected] or via messenger — we will respond with a scoped proposal, and the agreed deadlines will be met.
Similar appraisal objects
- Machinery and equipment appraisal
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Related services: Fixed asset revaluation · Business and integral property complex valuation · Valuation for lending and collateral
