Pricing a New Power Plant
pricing
India-specific
Set in Bengaluru, India; the figures and context are India’s.What this case is about
Your client is an EPC contractor planning a 1,000 MW coal-fired power plant near Bengaluru. The client wants a pricing strategy for one unit of electricity and prefers a cost-based approach. Explain how you would set the price; the focus is your methodology rather than a specific tariff.
Objective
Recommend a defensible cost-based electricity tariff methodology that accounts for lifecycle costs, realistic generation, the time value of money, and market competitiveness.
Skills this case tests
Structuring the problem
Working the numbers
Judgement and recommendation
Communicating clearly
This is an interview practice scenario. Figures in the brief are case inputs, not current market research.