In December 1996, Enron and Eastern Europe the band was on the verge of signing an innovative transactions in the utility industry. East was going to buy long-term option for converting natural gas to electricity from Enron, thereby giving it the right to operate the economic "virtual" power plant. This structure was significantly different from the traditional independent power plants (IPP) framework, and the leaders involved to convince his superiors of his wisdom before they could continue. This event was co-written for large-scale investment and corporate financial engineering, and it covers the topics related to both project finance and financial engineering. It illustrates a new paradigm in the field of electric power industry: the creation of virtual power plants, with the support of physical power with the trade exhibition. It also shows how the physical operations (construction and operation of power plants) can be used to cover contractual obligations and commercial exposures. "Hide
by Benjamin C. Esty, Peter Tufano Source: Harvard Business School 24 pages. Publication Date: 09 May 2000. Prod. #: 200051-PDF-ENG
Related Case Solutions & Analyses:
Keddeg Company (A): Succession to the Next Generation of Small Business
Health Care & the Isolated Poor in the Lower Rio Grande Valley: The Quest to Make a Lasting Change Sequel
Spartan Stores Inc.: Reengineering for Efficient Consumer Response
EQUITY CAPITAL RAISING: THE SEO OF PETROBRAS 2010 (B)
The Strategic Investor Takes the Driver’s Seat
The Canada Pension Plan Investment Board: October 2012
Investment Report
Altoona State Investment Board: July 2012
CalPERS Absolute Return Strategies: Hedge Fund Risk and Return
Corporate Governance: The Jack Wright Series #3-Board Selection
