Abstract: Abstract:When the domestic power generation groups invest in oversea power plant construction, the heat rate negotiation is an important part of the power purchase agreement (PPA), and it will influence on the investment income directly. The process flow and the key points of PPA negotiation were introduced. It was pointed out that the fluctuation of the coal price, the higher calorific value of the coal and the actual coal consumption are the factors influencing on the fuel payment, and the heat rate and the coal consumption will influence on the unit yield. According to the analysis on the typical working condition and the balance point, the counteractions of the heat rate and the coal consumption to the fuel payment were revealed further. The advantages and disadvantages of the heat rate and the fuel payment clauses in contracts of power plant B and power plant C in Indonesia were compared, and the control measures of the process key points of the design, the supervision of manufacturing, the construction and the commissioning were put forward, which provide reference for domestic power generation groups to invest in oversea power plant construction.

Key words: Key words:power purchase agreement (PPA), fuel payment, heat rate, coal consumption