Economic Analysis and Application of Small Micro/Hydro Power Plants
Economic Analysis and Application of Small Micro/Hydro Power Plants
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Department of Electrical Engineering
Y.C.C.E., Nagpur University
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Hingna Road, Wanadongri, Nagpur (India)
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Abstract. This paper aims an objective to study Economic
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overall energy picture of the world. These are the clean,
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Analysis of Mini hydel schemes. This study facilitates to take pollution free, eco-friendly energy sources. With the
effective measures for reducing the cost which are also given. advancement of technology it is possible to harness
Analysis of two mini hydel schemes, Bhimgarh small hydel and
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equipments is prepared. The constraints and problems arising in investment cost has already been given. [2]. As per
development of power hydel schemes are known. Comparing present power crisis small hydro, non-conventional plants
with other alternative sources of energy, economics of Non- may be planned to work during peak demand. Integrated
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Conventional energy schemes is given. Because of limited generation and distribution for rural area on fuel
availability of coal and other fossil fuels and for total upliftment availability, small hydro capacity on run-off the river
of country, growth of remote places is must. Whereas to shall improve the availability and reduce energy cost.
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demonstrated and working is been explained. The output has also in the flowing small river as well as small revolute
been tested and usefulness of research is highlighted. which are flowing usually nearby villages. Area required
for the construction work is small as canal already exists.
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a period of at least one full year where possible, so as to scheme. To maximize the revenue from energy cells, the
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ascertain the fluctuation in river flow over the various plants should be operated at maximum capacity for the
seasons. The constraints and problems arising in longest possible periods of time, commanding the highest
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development of power hydel schemes are known. As tariff for energy produced and sold to REC. The study is
there is limited availability of coal and other fossil fuels, done keeping in view the above facts.
hence for total upliftment of country, growth of remote
places is must. But to transmit power to such remote 3. Financial aspects of Micro Hydro Plants
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places is very costly, which gives rise to Pico-hydro
power plants that does not require construction of dams Madhya Pradesh is one of the states in India, which has
and hence considered as run-off-river. The designed good potential for mini/micro hydel power development.
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discharge is constant for canal drop project. But for run- This power can be developed through Irrigation canals,
off river project there are considerable changes in the Dam toe, return canals of thermal power stations etc.
discharge available as the river flow is seasonal. During The details of the both plants are given in Table I.
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dry season, the flow rate is so slow, that existing stand-by Bhimgarh is a small hydro power station which is
(diesel generator) unit would have to be used to situated on Dam Toe with capacity of (2 X 1200 KW)
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supplement the available generation. But during wet whereas Chargaon Jatlapur is a mini power Station
period, flood occurs on the river as it is uncontrolled. The situated on Canal fall with capacity (1 X 800KW).
maximum water level below the falls, during the record
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prepared and its working is explained. The output of the Generator Synchronous Synchronous
model has been tested. The demonstration model details 1200 KW, 3.3KV, 800 KW,
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promoting the incremental energy that can be supplied by 0.8p.f. 50 Hz 0.415KV, 0.8p.f.
hydro power can become a boon for local people in 50Hz
combination with other small scale local sources. With Switchyard 1500 KVA, 3.3 1500 KVA,
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these analysis results and suggestions new technologies Specification KV/ 0.415 KV/ 33
can be developed so that overall cost will reduce, 33 KV KV
Power House 13 x 9 x 7.472 7.48 x 4.3 x
efficiency will increase, and such schemes will be
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Estimated Cost of Civil 123.00 Lacs 120.73 Lacs
system, cabling etc.
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Works
2. Instead of going for full Kaplan one can use semi
Total Outlay of Project 489.56 Lacs 268.98 Lacs
O and M charges at 1% 4.895 Lacs 2.69 Lacs
Kaplan where guide vanes are fixed and variation in
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of total capital water is obtained from runner blade operation. So simpler
Annual Depreciation 11.197 Lacs 6.594 Lacs version of water level controllers can be used.
Interest charges @8% 39.164 Lacs 21.518 Lacs 3. There is ample scope for reducing Civil Engineering
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of capital cost by minimizing the dimensions of Power House by
Total Annual fixed 55.256 Lacs 30.802 Lacs minimizing the dimensions of Power house, control
charges panels, panels for instrumentation and protection can be
Energy generation 8.6978 MKWH 3.345 MKWH accommodated in mezzanine floor to minimize the span
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Transmission Loss @ 0.0869 MKWH 0.0334 of Power House. Layout can be simplified and the entire
1% to be deducted MKWH generating station in semi-underground arrangement
Total Energy 8.6108 MKWH 3.3116
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should be done.
Generation per annum MKWH
4. Sizing should be prudently decided with subsystems to
Cost of Generation 64.17 paisa/unit 93.0
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paisa/unit
reduce to a minimum to make the scheme economical.
Cost of Installation 20398.33 33622.5 5. Induction Generator are economical than Synchronous
Generators with associated subsystems.
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Rs/KW Rs/KW
6. Standardization of Hydraulic Turbine with objective of
reducing cost is important. A limited number of machine
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internal roads, maintenance and service of equipments, precisely match site requirements which is a greater or
technical records, and preparation of project report, lesser capacity than desired may be available. Simple
publicity information, transportation and Inspection design with standard size and parts to reduce production
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vehicle. For Dam toe type development, the cost of cost and time of delivery. Turbines can be standardized
generation as well as cost of installation is less as by considering possible widespread production of
compared to canal fall development. So the percentage components and service [4].
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returns for Dam toe is more and the pay back period is 7. Manufacturers of Hydro-Mechanical equipments
less. should continue standardizing the equipments.
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energy generation after deduction of 1% Transmission explore Micro Hydro Plant (MHP) generation, it will be
losses and friction losses worked out to be 8.6108
highly economical for rural industry and remote areas.
MKWH. For Chargaon the percentage return is
calculated as 9.55% while considering rupees 1.05
C. Reduction in time and civil work consideration
revenue rate. The break even period for project is 9 years
and total cost of the project is wiped out in 32 years. The
Annual fixed charge consists of the four heads as below. The cost of civil construction and time can be reduced as
a) Operation and maintenance charges as 1% of total given below.
cost. a) Installation of prepackaged Turbine, pre assembled at
b) Annual depreciation calculated as per Indian the workshop to reduce time and cost of assembly at site.
Electricity Act, 1948. b) Use of siphons penstocks.
c) Interest rate @ 8% of total cost and c) Use of machines designed to withstand full run away
d) 0.5% generation reserves fund on total cost. speeds continuously to reduce the cost of safety devices.
The Annual total cost fixed charge worked out to Rupees d) Adoption of low specific speed machine to enable
30.802 Lacs. higher setting above tail water level and thereby reducing
the excavation, civil work cost and erection time. systems can be analyzed by traditional present value
e) Reduction in spillway capacity by using turbines in analysis because of their capital intensity and long life. It
sluicing mode. is required that all expenditure and income be recorded at
their point of occurrence in time. Present value is given
D. Protection and Control by (1).
Small hydro plant controls are required for unit start, unit n Qt
shut down, unit synchronizing, unit loading and control, P= ∑ (1)
electrical and mechanical protection, emergency shut t = 1 (1 + r )t
down etc.
Low cost automation is important for many hydel
Where, Qt = Expenditure in period t
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schemes. Unit starting and synchronizing can be manual.
But emergency shut down must be full proof to avoid r = rate of discount.
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damage. Control of induction generators grid connected All the cost and prices may vary over time. The best
unit is easy synchronization. Speed and voltage control starting point is always to leave inflation out of the
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are automatically taken care of. Generators are less in picture so that the real rate of interest can be used as a
cost. Automation costs are very low. Large scale discount factor.
installation of these units on existing irrigation canals can
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be highly economical. G. Economics of Grid connected systems.
In isolated areas local grids can be formed and smaller
units can be induction generator type and can be We assume that in the grid, demand and supply are
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controlled from a manned control mini hydro station balanced originally. When the renewable energy sources
where the synchronous generators are installed. are made available additionally whenever it flows, some
of the conventional generators have to be reduced. In this
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E. Hybrid system development and Utilization for better way they will automatically serve the back up function
economy. for the capital renewable energy sources. The system
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cost, before renewable energy is made available
A major cause of low productivity and very low benefit comprises capital cost, fuel cost, Operation and
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cost ratios of isolated small hydro plants has been the maintenance cost. If renewable energy sources are added,
very low utilization of power generated from the flowing the system cost will be increased by the capital cost and
the operation and maintenance cost of the renewable
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commodities like gases and liquid fuels, fertilizers and Environmental damages from the use of conventional
food processing system rural material based industries sources of energy should be included in a proper
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such as soap, insecticides and oil extraction system etc. economic evaluation of the cost and benefits of energy
systems. Empirical evidence on the cost of environment
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feature in a stand alone system will require a back up of difficult to measure. The price for environment thus
some sort if the service required is time dependent [8]. expresses that it is not available in unlimited amounts.
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This will increase the cost of system. So from economic Setting a price for the environment implies limiting
reasoning, it seems that alternative sources of this type in quantitative use for environmental factors. This effect is
stand alone system are best suited for services where time brought about by a cost of reduction in the capital cost
does not play a crucial role. In order to bring down the for Renewable energy sources. This is very important for
cost of alternative energy generation, some back up the design of system of subsidy for Renewable energy
systems, which can take over some of the loads at the sources. Any system of promoting renewable energy
time when alternate sources does not flow adequately should give incentives to reduce the cost of production
could be brought in. The capacity of the source could be for the capital equipment required.
determined by minimum load required by the demand
site so that alternative sources would be responsible for I. Energy/Economy Interaction
rest. In stand alone system, the back up ratio should be
100% as the back up is necessary to assure the system Energy/ Economy Interaction models are designed to
against zero flow situations. Thus the back up cost is analyze the effects/ changes in the economy environment
generally very high. It is possible to reduce the cost by on the whole economy. Environmental restructuring of
integrating some kind of storage in the system. Energy the economy is basically a problem of all those sectors
that have high demand for energy. Renewable energy available varies over a large range of turbine speed also
constitutes a very small fraction of energy supply and varies in a highly non linear manner.
thus also of economic value connected to energy. In these 3. Operation, Maintenance and Control Problems:
models, there is no difference between renewable energy Operation of MHP is smooth, maintenance free and easy
and other energies regarding their economy impact. to operate whereas for wind power station there is
problem of noise pollution, teething troubles, poor
J. Constraints and problem in development of mini hydel performance due to O and M problems. The development
schemes of appropriate instrumentation for signal conditioner,
computer interfacing mechanism and software for
The major constraints and problems in the development different aspects of system operation is a major
of mini / micro hydro power plants on irrigation work are challenge. The major problem noticed in wave energy
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enumerated below. was the pulsed pattern of input power with regular
a) High capital cost of generating equipments and civil periodicity as the sea wave. Problems related to Biogas
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works. are handling of effluent slurry, gas forming
b) Equipments availability especially in ultra low head methanogenic bacteria, accumulation of volatile fatty
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range. acids and drop in Ph and failure of digester, leakage of
c) High cost of control especially for governing and gas from gas holder.
speed regulation. 4. Economic Consideration: Table III gives rough
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d) High cost of operation and management. impression of relative costs among energy alternatives.
e) Unstable operation of isolated system due to low 5. Impact on Environment: Wind, Solar, and MHP are
inertia. clean, pollution free, environment friendly sources. But
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f) Low utilization (load) factor. WECS create noise pollution. MHP does not disturb the
Improvement of technical and economics viability of low ecological balance and also regime of rivers. Biomass
head small hydro requires reduction of capital and energy stations are not very clean and they have to meet
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maintenance costs of equipment. Some pertinent factors the stringent standards of pollution control regulation.
in this regard are Standardization, speed regulation, However, under the surroundings, the extra expanded
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development of pre packaged and pre assembled unit, capacity has been already studied and the energy
development of micro processor based controls for structure has been adjusted to promote the renewable
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unattended operation and remote control and technology wind and small hydro energy instead of low efficient
development for tapping ultra low head or flowing water generation [8].
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energy.
K. Comparison with other Non-Conventional Energy TABLE III
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MHP are compared with other non-conventional energy Name of Plant Investment Fuel cost Power cost
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and modernization of old thermal power plants, co-
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generation along with renewable energy sources are some
of the potential candidates for CDM in the power sector.
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Project developers wishing to benefit from the CDM
must use an approved methodology to quantify their
FIG. 2 FULL VIEW OF DEMONSTRATING MODEL
emission reductions.
Emission reductions from CDM projects in the power
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The major equipments in the model are
sector can be calculated based on the net electricity 1. Turbine
generated by the project and the difference between the 2. Generator
emissions factors (CO /MWh) of the baseline and the 3. Mechanical Coupling.
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project activity. The baseline emission factor reflects the Model Specification:
carbon intensity of the displaced amount of grid Turbine: 8 inch
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electricity. This baseline emission factor can be derived Turbine Blades: 10
from the data provided in the CO Database [3]. Shaft (steel): 8mm Ø
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Baseline carbon dioxide emissions, developed by Central Magnet (Circular): 1.5 inch diameter
Electricity Authority would provide direction to help Winding wire gauge: No.37
Winding coil: Inner diameter 2 cm
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global environment.
Magnets and Winding disc (Acrylic disc): 5 inch
5. Demonstration Model diameter
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electricity grid. However to transmit power to such the generation of electric power. The Model Output was
remote areas is very costly. This fact gives rise to a tested in Laboratory and Output was found to be 1.8V.
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villages can become self reliant in power. If all the canal [4] M.P.Garg. Economics of Mini Hydro power,” Indian
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drops, small revolute are tapped effectively, most of the journal of power and river valley development, Sept-
power and low voltage problems can be removed in the Oct.1984, pp 435-439.
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small villages. With these analysis results and [5] MPEB Technical Report on Bhimgarh hydro plant
suggestions new technologies can be developed so that [6] MPEB Technical Report on Chargaon hydro plant
[7] L.Cai, G.H. Cheng and Z.Xu, Member, IEEE. "Capacity
overall cost will reduce, efficiency will increase, and Expansion and restructuring with Intermittent Wind and
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such schemes will be attractive especially for stand alone Small Hydro Energy," presented at the Conference
applications. Unlike PV or wind systems, hydro systems Transmission and Distribution , China, 2005.
generate electricity continuously, as long as the water is [8] W.Pfaffenberger, ‘ Modeling the economics of renewable
flowing, and will typically be the most cost-effective energy Projects’ SESI Journal 7, 1997, pp 1-15
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renewable energy approach.
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