A matrix model of management levels of productive assets and funds of thermal power plants
Importance Under economic crisis and investment restrictions, it is crucial to consider productive assets and funds management of electricity companies, and to improve the accuracy of mathematical models of the asset management system of thermal power stations. Objectives The aim is to define a structure of the cost of asset ownership, depending on energy resource production by thermal power plants based on a two-tier matrix model of tangible and financial assets; to determine an analytical formula of the cost of asset ownership of power suppliers. Methods For the matrix analysis purpose, the space of asset management is divided into two sub-spaces of tangible and financial assets. They, in turn, are divided into two sub-spaces of management of electricity and heat generation. Results I developed an ‘input-output’ matrix model of thermal power stations, created an economic and technological model that links the technology of tangible assets of energy resources of thermal power plants and economic factors of financial assets (value added, income, cost of labor), from which the structure of the cost of asset ownership of thermal power plants is derived. Conclusions The paper studies the matrix model of the management hierarchy and the levels of control space of business assets and funds of power corporations. It presents a canonical calculation of the cost of asset ownership on the basis of a two-tier system of electric and thermal energy generation with and without heating steam extraction.