Finance Sheet of Mini-Hydro Power Project

Hydropower
Hydroelectric power plants generate electrical energy by using the gravitational force of falling or
flowing water that drives turbines and generators. It is the only type of renewable energy that can
currently be produced on a big scale profitably. It has four key benefits: it's renewable, it emits
hardly any greenhouse gases, it's the least expensive option to store a lot of electricity, and it's
simple to match the quantity of electricity produced to the amount needed by users. Around 17%
of the world's producing capacity and 20% of the energy produced annually come from
hydropower.
Small hydropower projects play an important role in far-flung areas where it is difficult to provide
electricity from the national grid. In this finance sheet, we plan to build a hydroelectric power plant
of 100 KW installed capacity.
The details of the costs of constructing the 100 KW Mini Hydro Power Run-of-the-River Project
are mentioned below:
Machinery & Materials
The small-scale power plant requires various materials and machinery for electricity generation.
The structure of a mini hydro power project include construction materials, turbine, gearbox or
drive belts, generator, hydraulic or electrical actuators, and the water inlet control valve. As there
are two types of heads scheme employed in Hydro power plants. Usually, the cost of machinery
for high-head schemes is lower than for low-head schemes of similar power. It is because High
head machines have to pass less water than low-head machines for the same power output and are
therefore smaller. They also run faster and thus can often be connected directly to the generator
without the complication of gearbox or belts.
The turbine is used to convert the kinetic energy of flowing water into mechanical energy. This
mechanical energy turn the generator that create electrical energy. System efficiencies range from
65% to 80%, depending on the kind and design of the turbine.
Bevel helical gearboxes are used to increase the generator's speed from the low speed of the water
turbines to the necessary higher speed for power generation.
Automated control systems using hydraulic power actuator cylinders are used in dams with
hydroelectric turbines. The water flow rates that affect the turbine speed and the dam's electrical
output are measured and controlled by these control systems. They employ actuators to control
gates or large control valves.
The transformer may also be used in some cases to regulate the power output of the plant, which
ultimately increases the cost of the power plant. However, in our power plant, we do not require a
Transformer and did not include its cost in the Machinery expense.
Civil Works
The Civil works include the physical construction of the plant. It primarily consists of the intake,
the forebay tank and screen, the pipeline or channel that transports water to the turbine, the
foundations for the turbine building and equipment, and the channel used to return water to the
river during the tailrace. The majority of civil works are site-specific and based on the local
topography.
In addition to those elements, overall infrastructure will also be built, for example, roads, drains,
cables, ducts, trenches, and other groundworks need to be provided in order to link the plant site
with the existing infrastructure of the area. This infrastructure will help the employees in their
daily movement throughout the operational lifetime of the power plant.
Electrical Works
The electrical system consists of a generator, a control system, wiring inside the turbine house,
generator cooling, busbars, exciters, reactors, circuit breakers, switchboard, and control room
equipment.
The cost of installation of these systems and their connection with the local energy grid is
calculated and mentioned in the Electrical Works Expense. The maximum power output of the
installation significantly affects these costs.
Employees
For the construction of a 100 KW mini hydropower project, 20-30 employees including Engineers,
Technicians, and civil workers will be required. Each employee will work on an 8-hour daily shift
for 1 – 1.5 year.
The number of employees varies depending on the phase of construction. However, on average
the cost of employing all the employees in the whole process range from 150k – 200k pounds.
Source of Funds,
The funding for this power project will be provided by the Consortium of various companies. Also,
there is some contribution from British Hydropower Association (BHA) both technically and
financially.
Expected Income
It’s a complicated process to assess the income from hydropower projects. The income expected
from the mini hydropower project depends on several components that make up the total value of
generated hydroelectricity, like, the electricity tariff from the Office of Gas and Electricity Markets
(OFGEM), export value, offset value for energy used on-site, future changes to export value and
import electricity prices. However, the estimated income from a hydropower plant is around £100,
000 per annum, which is the typical annual income averaged over 40 years.
Others Expenses
Along with the above expenditures, there are further types of expenses like license fees, insurance,
and other miscellaneous costs that are also mentioned in the overall costing of the Mini Hydro
Power Project.
The figures related to each type of expense are mentioned in the table below. One thing should be
kept in mind here that the figures mentioned in the table are just estimated costs and can vary
depending on the inflation rate and other parameters of the economy.
Type of Expenses
Low Head High Head
(Estimated Cost)
In £1000s In £1000s

Materials & Machinery 200 – 400 200 – 300

Total 650 – 1020 610 – 820