cost estimation of small hydro power generation

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Project Report By Sanjay Kumar

MINOR PROJECT REPORT

ON

COST ESTIMATION OF SMALL HYDRO POWER GENERATION

Submitted in partial fulfilment of the award of Degree of Master of Technology in Energy Management

SUBMITTED BY

SANJAY KUMAR

GUIDED BY Dr. S.P.SINGH

PROFESSOR & HEAD S E E S

SCHOOL OF ENERGY & ENVIRONMENTAL STUDIES (FACULTY OF ENGINEERING SCIENCES)

DEVI AHILYA VISHWA VIDYALAYA, INDORE 452 017



ACKNOWLEDGEMENT

I avail this opportunity to express my sincere gratitude and profound thanks to my Project guide Dr. S.P.Singh, Professor & Head, School of Energy & Environmental Studies (SEES), DAVV, Indore and Mr.Rajesh Singadiya, Lecturer, SEES for giving me constant guidance to work on Minor Project on cost estimation of small hydro power generation. He has been a guiding source by providing continuous suggestions and advice throughout the study period of the Project. With heartfelt gratitude, I acknowledge the cooperation and support rendered to me by Dr. R.N.Singh, Professor, SEES and Dr. (Mrs) Rubina Choudhary, of SEES from time to time. I would also take this opportunity to thank my family members, close friend Mr.Sachin Mishra and classmates, who have been a source of moral support and continuous encouragement in undertaking this Project work.

Sanjay Kumar



CERTIFICATE This is to certify that the Project titled “COST ESTIMATION OF SMALL HYDRO POWER GENERATION” being submitted by me to the School

of Energy & Environmental Studies, Devi Ahilya

Vishawavidyalaya, Indore is a record of the original

bonafide project work carried out by me and the

results presented in this Project Report have not been

submitted in part or full to any other University or

Institution for the award of any degree.

Date: SANJAY KUMAR



SCHOOL OF ENERGY & ENVIRONMENTAL STUDIES (FACULTY OF ENGINEERING SCIENCES)

DEVI AHILYA VISHWA VIDYALAYA INDORE 452 017

CERTIFICATE

The Project titled “COST ESTIMATION OF SMALL HYDRO POWER GENERATION” Submitted by Mr. Sanjay Kumar, who has worked under my guidance, is approved for the submission for the partial fulfillment of the degree of Master of Technology in Energy Management.

Date: Dr S.P.Singh

Professor & Head School of Energy &



Environmental Studies

CHAPTER-1

INTRODUCTION AND LITERATURE REVIEW

1.1 INTRODUCTION Hydropower is a renewable, non-polluting and environmentally benign source of energy.

It is perhaps the oldest renewable energy technique known to the mankind for mechanical

energy conversion as well as electricity generation. Hydropower represents use of water

resources towards inflation free energy due to absence of fuel cost with mature

technology characterized by highest prime moving efficiency and spectacular operational

flexibility.

Hydropower contributes around 22% of the World electricity supply generated from

about 7,50,000 MW of installed capacity and in many countries, it is the main source of

power generation e.g. Norway – 99%, Brazil- 86%, Switzerland – 76% and Sweden –

50%[25]. Power generating total installed capacity in India is 1, 27,056 MW, which

includes 32,442.5 MW from hydro. Despite hydroelectric projects being recognized as

the most economic and preferred source of electricity, the share of hydropower in India

has been declining since 1963. The hydro share declined from 50% in 1963 to about 26%

in 2005. For grid stability the ideal hydro-thermal mix ratio is 40:60. It is therefore,

necessary to correct the hydro-thermal mix to meet the grid requirements and peak power

shortage.

The Government of India has announced, in August, 1998 Policy on Hydro Power

Development, followed by 50,000 MW hydro-electric initiatives in May, 2003. About

70% of the population in India lives in rural areas. The rural energy scenario is

characterized by inadequate, poor and unreliable supply of energy services. Realizing the



fact that small hydropower projects can provide a solution for the energy problem in

rural, remote and hilly areas where extension of grid system is comparatively

uneconomical and also along the canal systems having sufficient drops, promoting small

and mini Hydro projects is one of the objectives of the Policy on Hydro Power

Development in India.

In addition, 56 number of pumped storage projects have also been identified with

probable installed capacity of 94,000 MW .in addition to this, hydro-potential from small,

mini& micro schemes has been estimated as 15000 MW. Thus in totality India is

endowed with hydro-potential of about 2, 50,000 MW. The status of hydropower

potential in India is given in Table1.1

Hydro is many times a cheaper option for the country compared to thermal power due to

the following reasons:

a. Life of hydro plants is 60 years minimum ,against 30 years that of thermal plants

b. Against zero cost input in case of hydro ,constant escalation in cost of coal makes

the operational cost of Thermal ever increasing

c. Load carrying capacity of the grid and hence its economy improves with the

peaking partnership of Hydro,reducing backing down of thermal plants and

therefore increasing their PLF and efficiency



Table No.1.1 Status of Hydro Electric Potential Development [24]

( In terms of Installed capacity) - As on 30.4.2010 Region/state Indentified

capacity as per re- assessment study

Capacity developed

Capacity under Construction

Capacity developed+ capacity under construction

Capacity yet to be developed

NORTHERN (MW)

(MW) % (MW ) % (MW) % (MW) %

Jammu&kashmir 14146 1864.2 13.18 899.0 6.36 2763.2 19.53 11382.9 80.47 Himachal Pradesh 18820 6085.5 32.34 4435.0 23.57 10520.5 55.90 8299.6 44.10 Punjab 971 1297.7 100.00 0.00 0.00 1297.7 133.64 0.00 0.00 Haryana 64 62.4 97.50 0.00 0.00 62.4 97.50 1.6 2.50 Rajasthan 496 430.0 86.69 0.00 0.00 430.0 86.69 66.0 13.31 Uttaranchal 18175 3056.1 16.81 1850.0 10.18 4906.1 26.99 13269.0 73.01 Uttar Pradesh 723 510.2 70.57 0.00 0.00 510.0 70.57 212.8 29.43 Sub Total (NR) 53395 13305.9 24.92 7184.0 13.45 20489.9 38.37 32905.1 61.63 WESTERN (MW)

(MW) % (MW ) % (MW) % (MW) %

Madhya Pradesh. 2243 2438.5 108.72 400.0 17.83 2838.5 100.00 0.0 0.00 Chhattisgarh 2242 137.0 6.11 0.00 0.00 137.0 6.11 2105.0 93.89 Gujarat 619 555.0 89.66 0.00 0.00 555.0 89.66 64.00 10.34 Maharashtra 3769 2653.3 70.40 0.00 0.00 2653.3 70.40 1115.7 29.60 Goa 55 0.00 0.00 0.0 0.00 0.0 0.00 55.0 100.00 Sub total (WR) 8928 5783.8 64.78 400.0 4.48 6183.8 69.26 2744.2 30.74 SOUTHERN (MW)

(MW) % (MW ) % (MW) % (MW) %

Andhra Pradesh 4424 2056.5 46.49 605.0 13.68 2661.5 60.16 1762.5 39.84 Karnataka 6602 3448.3 52.23 230.0 3.48 3678.3 55.71 2923.7 44.29 Kerala 3514 1838.5 52.32 160.0 4.55 1998.5 56.87 1515.5 43.13 Tamilnadu 1918 1757.5 91.63 60.0 3.13 1817.5 94.76 100.6 5.24 Sub Total (SR) 16458 9100.8 55.30 1055.0 6.41 10155.8 61.71 6302.3 38.29 EASTERN (MW)

(MW) % (MW ) % (MW) % (MW) %

Jharkhand 753 237.2 31.50 0.0 0.00 237.2 31.50 515.8 68.50 Bihar 70 44.9 64.14 0.0 0.00 44.9 64.14 25.1 35.86 Orissa 2999 2011.5 67.07 0.00 0.00 2011.5 67.07 987.5 32.93 West Bengal 2841 156.5 5.51 292.0 10.28 448.5 15.79 2392.5 84.21 Sikkim 4286 594.0 13.86 1919.0 44.77 2513.0 58.63 1773.0 41.37 A& Nicobar 0 5.3 Sub Total (ER) 10949 3049.4 27.85 2211.0 20.19 5260.4 48.04 5688.7 51.96 NORTH EASTERN (MW)

(MW) % (MW ) % (MW) % (MW) %

Meghalaya 2394 185.2 7.74 124.0 5.18 309.2 12.92 2084.8 87.08 Tripura 15 15.0 100.00 0.0 0.00 15.0 100.00 0.0 0.00



Manipur 1784 105.0 5.89 0.0 0.00 105.0 5.89 1679.0 94.11 Assam 680 375.0 55.15 0.0 0.00 375.0 55.15 305.0 44.85 Nagaland 1574 99.0 6.29 0.0 0.00 99.0 6.29 1475.0 93.71 Arunachal Pd 50328 423.5 0.84 2600.0 5.17 3023.5 6.01 47304.5 93.99 Mizoram 2196 0.0 0.00 0.0 0.00 0.0 0.00 2196.0 100.0 Sub Total (NER) 58971 1202.7 2.04 2724.0 4.62 3926.7 6.66 55044.3 93.34 ALL INDIA 148701 32442.5 21.82 13574.0 9.13 46016.5 30.95 102684.5 69.05

1.2 SMALL HYDRO POWER Small hydro power (SHP) is one of the most common renewable, economic, non-

consumptive, non-radioactive, non-polluting and environmentally benign sources of

energy. India has a century old history of hydropower and the beginning was from small

hydro. The first hydro power plant was of 130 KW set up in Darjeeling during 1897,

marked the development of hydropower in the country. With the advancement of

technology, and increasing requirement of electricity, the thrust of electricity generation

was shifted to large size hydro and thermal power stations. However, during the last 10-

15 years there is a renewed interest in the development of small hydro power projects due

to its benefits particularly concerning environment and ability to produce power in

remote areas. Small hydro projects are economically viable and have relatively short

gestation period. The major constraints associated with large hydro projects are usually

not encountered in small hydro projects. The World estimated potential of small hydro is

of around 180,000 MW. India has as an estimated potential of about 15,000 MW with

perennial flow rivers, streams and a large irrigation canal network with dams & barrages.

Of this, 4,861 potential sites with an aggregate capacity of 12841.81 MW have been

identified. The advantages and SWOT analysis are given below [27].and state wide

identified of small hydropower is given in Table1.2; small hydro scene up to 25 MW is

given in table1.3.

1.2.1 Small hydro advantages 1. A fast way to increase rural electrification, improved living standards and simulation

of rural industries



2. Flexibility of installation and operation in an isolated mode and also in a localized or

regional grid system

3. Relatively small investments required as compared to large hydro

4. Low operational cost with cheap and simple maintenance

5. Standard indigenous technologies and maintenance base available which require only

minor adaptation to specific site condition

6. Compatible with use of water for other purposes such as irrigation , drinking etc

7. Long life of 30- 40 years

8. Perennial source of income generation

1.2.2 SWOT analysis of Small Hydro Power Strengths

Utilizes highest density renewable energy source

Non-consumptive, non – polluting and environmentally benign

Low gestation schemes

Private sector policy is in position in 14 states of India

Reliable and mature technology available in India

Weakness

Non – availability of pre- investment study reports of newly identified sites

Single window clearance facility not functional in all states

Non – uniformity of wheeling & banking facility

Non – uniformity of buy back and third party sale

Water royalty charged from private entrepreneurs

Opportunities

Estimated potential 15,000 MW of which 12,841MW has been developed

International assistance available

Power deficit / decentralized power requirement

Attractive proposition for captive power

Threats

Economics depends on government policies



Hilly hydro face problems of land slides, uplift pressures, differential settlements,

flash floods etc.

Rapid wear of equipment due to high concentration of sediment in the streams

Table 1.2 State wise identified small hydropower sites

up to 25 MW capacity (As on 30/04/2010) [24]

Sl. No. Name of state

Installed SHP Projects

Under Construction

Projects

Identified Potential Sites

No. MW No. MW No. MW 1 Andhra Pradesh 75 214.64 45 97.85 376 247.70 2 Arunachal Pradesh 82 48.94 25 40.22 443 1239.53 3 Assam 3 2.11 17 73.70 99 162.88 4 Bihar 8 50.90 13 13.00 74 149.35 5 Chhattisgarh 4 18.00 34 410.70 146 564.41 6 Goa 1 0.05 4 4.45 1 2.00 7 Gujarat 2 7.00 3 3.60 287 186.37 8 Haryana 5 62.70 5 10.80 23 36.55 9 Himachal Pradesh 67 184.78 13 64.00 456 2019.03 10 Jammu & Kashmir 31 114.00 7 9.37 208 1294.43 11 Jharkhand 6 4.05 8 34.85 89 170.05 12 Karnataka 94 592.80 29 123.59 15 31.20 13 Kerala 18 119.27 22 135.30 205 449.53 14 Madhya Pradesh 9 33.15 5 41.10 285 729.39 15 Maharashtra 33 246.63 3 13.50 219 472.50 16 Manipur 11 7.13 4 10.25 99 91.75 17 Meghalaya 3 30.70 8 1.78 90 197.32 18 Mizoram 17 14.81 5 16.20 53 135.93 19 Nagaland 9 20.67 6 19.00 84 149.31 20 Orissa 6 7.30 10 70.18 206 217.99 21 Punjab 33 125.75 0 0.00 204 267.48 22 Rajasthan 9 23.85 2 5.50 55 27.82



Table 1.3 small hydro (up to 25mw) scenario [24]

1.3 DEFINITION OF SMALL HYDRO POWER There is a general tendency all over the world to define Small Hydropower by the

power output. Different countries follow different norms, the upper limit ranges between

5 to 50 MW, as given in the Table.1.4

Table 1.4 Worldwide definitions of SHP [23]

23 Sikkim 16 38.82 5 12.40 70 214.33 24 Tamil Nadu 15 100.30 12 77.80 170 481.41 25 Tripura 3 16.01 0 0.00 10 30.85 26 UT (A & N Islands) 1 5.25 6 2.02 0 0.00 27 Uttar Pradesh 9 25.10 0 0.00 242 435.65 28 Uttarakhand 91 85.71 35 56.75 318 1434.99 29 West Bengal 45 101.35 17 81.25 141 213.52 TOTAL 674 2429.77 343 1429.15 5415 14,305.47

Overall potential 15,000 MW

Identified potential 14305.47 MW (5415 sites)

Installed capacity 2045.61MW

Under construction 1429.15 MW (343 projects)

Capacity addition during 2002-2007 Over 500 MW

Target capacity addition – 11th Plan

(2007-2012)

1400 MW

Country Capacity (MW)

UK ≤ 5

UNIDO ≤ 10



In India, out of 150,000 MW hydropower potential, 15,000 MW potential is

estimated as small hydro, of which about 12% has been tapped so far. In India, SHP

schemes are classified by the Central Electricity Authority (CEA) as given in the

Table1.5 Power stations are also classified based on the head available and is given in

Table1.6

Table 1.5 Classification of Small Hydro Power schemes in India [23]

Type Station capacity Unit rating

Micro Up to 100 kW Up to 100 kW

Mini 101 to 2000 kW 101 to 1000 kW

Small 2001 to 25000 kW 1001 to 5000 kW

Table 1.6 Small Hydro Power Classification based on head [23]

Type Range of Head

Ultra Low Head Below 3 m

Sweden ≤ 15

Colombia ≤ 20

Australia ≤ 20

India ≤ 25

China ≤ 25

Philippines ≤ 50

New Zealand ≤ 50



Low Head 3 to 40 m

Medium/ High Head Above 40 m

1.4 TYPES OF SHP SCHEMES Small Hydropower can also be broadly categorized in three types as follows:

1. Run of River schemes

2. Canal based schemes

3. Dam toe based schemes

1.4.1 Run-Of River Scheme Run-of-River hydroelectric schemes are those, in which water is diverted towards

power house, as it comes in the stream. Practically, water is not stored during flood

periods as well as during low electricity demand periods, hence water is wasted. Seasonal

changes in river flow and weather conditions affect the plant’s output. After power

generation water is again discharged back to the stream. Generally, these are high head

and low discharge schemes. The typical run-of river scheme is shown in Fig. 1.1.

Fig.1.1 Typical arrangement of run-off river scheme [23]

1.4.2 Canal Based Scheme



Canal based small hydropower scheme is planned to generate power by utilizing

the fall in the canal. These schemes may be planned in the canal itself or in the bye pass

channel. These are low head and high discharge schemes. These schemes are associated

with advantages such as low gestation period, simple layout, no submergence and

rehabilitation problems and practically no environmental problems. The typical canal

based scheme is shown in Fig.1.2

Fig.1.2 Typical arrangement of canal based scheme [23]

1.4.3 Dam Toe Based Scheme Dam based schemes are those in which water is stored in the river by constructing

a dam across the river and the power is generated by controlled flow from the

storage.dam toe powerhouse is common in India. In dam toe scheme, the intake system

forms the part of the main dam. The typical layout of dam based small hydropower

scheme is shown in fig1.3



Fig. 1.3 Typical arrangement of dam toe based scheme [23]

1.5 LITERATURE REVIEW Earlier author has carried out work in the past on sizing and cost of small hydro power

projects and literature available in journals and other publications has been studied. The

important literature is presented as follows

1.5.1 LITERATURE REVIEW ON COST F. Forouzbakhsh, S.M.H. Hosseini, and M. Vakilian [1] in their paper reviews the

structure of BOT contracts and through an economic evaluation based on different

percentage of investments of private sector in providing the expenses of small and

medium hydro-power plants, demonstrates that by increasing the percentage the share of

the private sector in the investment, the economic indices B/C and NPV improve

substantially.

Oliver Paish [8] in his paper summarizes the different small hydro technologies, new

innovations being developed, and the barriers to further development Small-scale hydro

is in most cases “run-of-river”, with no dam or water storage, and is one of the most cost-

effective and environmentally benign energy technologies to be considered both for rural

electrification in less developed countries and further hydro developments in Europe.



R. Montanari [4] in his paper presents an original method for finding the most

economically advantageous choice for the installation of micro hydroelectric plants.

More precisely, the paper that follows is to be considered in a context defined as

“problematic” by those who have the job of constructing water-flow plants with only

small head and modest flow rates. Traditional plant solutions using Kaplan or Francis

type turbines must be rejected because of the high levels of initial investments. Much

more simple configurations must be analyzed, such as plants with propeller turbines or

Michel–Banki turbines, in order to reduce the investment costs. The general methodology

applied provides a powerful decision-making instrument which is able to define the best

plant configuration. The method is based on the use of economic profitability indicators,

such as the Net Present Value (NPV), calculated using the plant project parameters, the

nominal flow rate and head, and the particular hydrologic characteristics of the site, such

as the type of distribution, the average value and the standard deviation of the flow rates

in the course of water supplying the plant

S.M.H. Hosseinia, F. Forouzbakhshb, M. Rahimpoor [6] in their paper a method to

calculate the annual energy has presented, as is the program developed using Excel

software. This program analyzes and estimates the most important economic indices of a

small hydro power plant using the sensitivity analysis method. Another program,

developed by Mat lab software, calculates the reliability indices for a number of units of a

small hydro power plant with a specified load duration curve using the Monte Carlo

method. Ultimately, comparing the technical, economic and reliability indices will

determine the optimal installation capacity of a small hydro power plant.

S.K. Singal and R.P.Saini [9] has presented methodology to determine the correlations

for the cost of different components of canal based small hydro power schemes. The cost

based on the developed correlations, having different head and capacity, has been

compared with the available cost data of the existing hydropower stations. It has been

found that these correlations can be used reasonably for the estimation of cost of new

canal-based SHP schemes.

.1.5.2 LITERATURE REVIEW ON SIZING



John S. Anagnostopoulos, Dimitris E. Papantonis [13] in their paper the sizing of a

small hydropower plant of the run-of-river type is very critical for the cost effectiveness

of the investment. In the present work, a numerical method is used for the optimal sizing

of such a plant that comprises two hydraulic turbines operating in parallel, which can be

of different type and size in order to improve its efficiency. The study and analysis of the

plant performance is conducted using a newly developed evaluation algorithm that

simulates in detail the plant operation during the year and computes its production results

and economic indices. A parametric study is performed first in order to quantify the

impact of some important construction and operation factors. Next, a stochastic

evolutionary algorithm is implemented for the optimization process. Analyzing the

results of various optimizations runs, it becomes possible to identify the most

advantageous design alternatives to realize the project. It was found that the use of two

turbines of different size can enhance sufficiently both the energy production of the plant

and the economic results of the investment. Finally, the sensitivity of the plant

performance to other external parameters can be easily studied with the present method,

and some indicative results are given for different financial or hydrologic conditions

K.V.Alexander, E.P.Giddens [5] in their paper an overview of a program that is in the

final stages of developing a modular set of cost-effective micro hydro schemes for site

heads below those currently serviced by Pelton Wheels. The rationale has been that there

is a multitude of viable low-head sites in isolated areas where micro hydro is a realistic

energy option, and where conventional economics are not appropriate, especially in Third

World countries. The goals of this project have been to provide low-cost, soundly based

turbine design solutions that systematically cover the 0.2–20kW supply, that are uniquely

resistant to debris blockage and are easily built by tradesmen of medium skills in regional

workshops. The paper presents the results as a matrix of the most cost-effective penstocks

matched to modular turbines using established electronic controls. It discusses practical

issues of site selection and options for sites where exact matches are not achieved.

N.G. Voros, C.T. Kiranoudis, Z.B. Maroulis[14] in their paper the problem of

designing small hydroelectric plants has been properly analyzed and addressed in terms

of maximizing the economic benefits of the investment. An appropriate empirical model



describing hydro turbine efficiency was developed. An overall plant model was

introduced by taking into account their construction characteristics and operational

performance. The hydro geographical characteristics for a wide range of sites have been

appropriately analyzed and a model that involves significant physical parameters has

been developed. The design problem was formulated as a mathematical programming

problem, and solved using appropriate programming techniques. The optimization

covered a wide range of site characteristics and three types of commercially available

hydro turbines. The Methodology introduced an empirical short-cut design equation for

the determination of the optimum nominal flow rate of the hydro turbines and the

estimation of the expected unit cost of electricity produced, as well as of the potential

amount of annually recovered energy.

S.K. Singal and Varun [10] in his paper planning and designs of small hydroelectric

schemes is an evolving process leading to safe and cost effective refinements in designs.

The major factor for high cost of civil works of the these schemes is conventional designs

coming out of designers with a mind set, that of miniaturizing a major hydro model for

small/mini hydro, there-by including many of the components not required or used in

small hydro operation at all. First and foremost step needed is to break this mindset and

reduce the civil cost of small hydro projects by innovative and practical designs. The

lesson learnt from the experience and use of new technologies make small hydropower

plants economically viable. Use of local materials and site-specific design/solutions make

the scheme cost effective and reduce the operation and maintenance cost

1.6 OBJECTIVE OF PRESENT STUDY The problem associated with Small Hydro is initial capital cost which becomes the

overriding issue. Each proposed site requires individual engineering considerations for

civil works as well as for equipment. Therefore, costs become infeasible due to lack of

standardization of the system for such a small power generation.



Cost effective small hydro would depend largely on proper selection of site, good

planning of the layout of the scheme on optimization basis, competent hydrological and

power potential studies, careful and correct designs of structures, proper estimates with

realistic rates and use of construction techniques appropriate to small hydro and efficient

execution. In the present study has been carried out to considering following

1. To study various components of SHP schemes

2. To identify cost sensitive parameters

3. To carry out sizing of components of civil works

4. To determine cost of components of civil works based on actual based on

actual quantity and prevailing rates.

5. To determine the correlations for cost of components.

6. Using linear optimization optimum layout was selected



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