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ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction. 19 th – 23 rd June 2006 Nairobi, Kenya. Module 6: Small Hydro. Divas B. Basnyat. Contents. Introduction Definition Fundamentals and Principles Small hydro in Africa Applications of small hydro

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Adb finesse training course on renewable energy energy efficiency for poverty reduction

ADB FINESSE Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction

19th – 23rd June 2006

Nairobi, Kenya

Module 6 small hydro

Module 6: Efficiency for Poverty ReductionSmall Hydro

Divas B. Basnyat

Contents Efficiency for Poverty Reduction

  • Introduction

  • Definition

  • Fundamentals and Principles

  • Small hydro in Africa

  • Applications of small hydro

  • Barriers to development and implementation

  • Design Aids

  • Case study - Nepal

Introduction Efficiency for Poverty Reduction

  • Small hydro –for isolated grid, central grid and dedicated supply

  • Minimum environmental impacts mainly thru run of river schemes

  • Widely used for:

    • Rural residential lighting, TV, radio and telephone

    • Rural small industries, agriculture and other productive use

    • Grid based power generation

  • Reliable, low operating costs, independent of energy price volatality

Hydro scheme
Hydro Scheme Efficiency for Poverty Reduction

Definition size
Definition – size Efficiency for Poverty Reduction


Definition flow runner dia
Definition (flow, runner dia) Efficiency for Poverty Reduction

  • RETScreen International

  • Less than 5 kW - Pico

Fundamental and principles
Fundamental and Principles Efficiency for Poverty Reduction

  • Hydropower generation process

  • Relationship between power, flow and head

  • Types of hydro projects

  • Main components

  • Power/energy calculations

Hydro power process
Hydro Power Process Efficiency for Poverty Reduction

  • Potential energy of flowing water converted to kinetic energy as it travels thru the penstock

  • Kinetic energy of the flowing water is converted to mechanical energy as it turn the turbines

  • Mechanical energy of the rotating turbine is converted to electrical energy as the turbine shaft rotates the generator

Power f q h
Power = f(Q,H) Efficiency for Poverty Reduction

  • P = **g* Q*H

    • P = power in Watts

    •  = efficiency (micro – 50-60%, small > 80%)

    •  = density of water (1000 kg/m3)

    • g = acceleration due to gravity (9.81 m/s2)

    • Q = flow passing thru the turbine (m3/s)

    • H = head or drop of water (m) (difference between forebay level and turbine level or tail water level)

  • Considering  = 80%

    • P = 8*Q*H kW (approx)

Small hydro types
Small Hydro - Types Efficiency for Poverty Reduction

  • Type of grid:

    • Central grid

    • Isolated or off-grid

    • Captive or Dedicated supply (e.g. to cement factory)

  • Type of Regulation:

    • Run of river (lower firm capacity, power varies with flow)

    • Run of river with pondage (some daily peaking)

    • Reservoir type (higher firm power, larger area inundated)

    • Pumped storage (utilizing off-peak energy to pump water, less likely in small scale)

Sketch Source: BHA, 2005

Component civil works
Component: Civil Works Efficiency for Poverty Reduction

  • Typically account for 50-60% of initial costs

  • Diversion dam or weir

    • Low dam of simple construction for run-of-river

    • Concrete, wood, masonry

  • Water conveyance

    • Intake with trashrack and gate; tailrace at exit

    • Sediment handling structure

    • Excavated canal, underground tunnel and/or penstock

    • Valves/gates at turbine entrance/exit, for maintenance

  • Power house

    • Houses turbine, mechanical, and electrical equipment

Turbines Efficiency for Poverty Reduction

  • In run-of-river, flow rate is quite variable

    • Turbine should function well over a range of flow rates or multiple turbines should be used

  • Reaction: Francis, fixed pitch propeller, Kaplan

    • For low to medium head applications

    • Submerged turbine uses water pressure and kinetic energy

  • Impulse: Pelton, Turgo, crossflow

    • For high head applications

    • Uses kinetic energy of a high speed jet of water

Source: BHA, 2005

Turbines Efficiency for Poverty Reduction




Electrical and other equipment
Electrical and other equipment Efficiency for Poverty Reduction

  • Generator

    • Induction – used to supply to large grid

    • Synchronous – stand-alone and isolated-grid applications

  • Other equipment

    • Speed increaser to match turbine to generator

    • Valves, electronic controls, protection devices

    • Transformer

Power energy calculation
Power/Energy Calculation Efficiency for Poverty Reduction

  • Flow Duration Curves – annual and monthly

  • Compensation flow

    • Downstream release (environmental flow)

    • Irrigation requirement (if any)

    • Leakage

  • Design head

  • Head losses – headworks, headrace, penstock

  • Example – Design flow = 4.58 m3/s, Gross head = 245m,  = 85%, Outage – 10%

Flow duration curve
Flow Duration Curve Efficiency for Poverty Reduction

Example calculation
Example- Calculation Efficiency for Poverty Reduction

Power Duration

Monthly Energy

Head works river diversion
Head Works-River Diversion Efficiency for Poverty Reduction

Settling basin
Settling Basin Efficiency for Poverty Reduction

Headrace Canal

Tunnel Efficiency for Poverty Reduction


Fish ladder
Fish Ladder Efficiency for Poverty Reduction

Small hydro utilization in africa
Small Hydro Utilization in Africa Efficiency for Poverty Reduction

Source: Karekezi and Kithyoma, 2005

Tea and small hydro in east africa
Tea and Small Hydro in East Africa Efficiency for Poverty Reduction

  • To reduce the electrical energy in the tea processing industries in countries


Uganda Efficiency for Poverty Reduction

  • Hydro installed capacity – 320MW (only 16.7 MW small)

  • 1% electrification in rural areas

  • Mini hydro sites (non-Nile) – 200 MW identified

  • Can benefit from CDM

Source: Taylor and Upadhaya, 2005

Application electricity generation
Application- Electricity Generation Efficiency for Poverty Reduction

  • Domestic Load

    • Number of households

      • Electrical items in all households (light, TV, Radio)

  • Industrial/Commercial Load

    • Agro processing

    • Small enterprises

    • Shops

  • Social Load

    • School, Health post etc.

  • Others

Electricity demand isolated
Electricity Demand- Isolated Efficiency for Poverty Reduction

Peak Demand

Electricity demand central grid
Electricity Demand- Central Grid Efficiency for Poverty Reduction

Source: Nepal Electricity Authority

Application mechanical power
Application : Mechanical Power Efficiency for Poverty Reduction

  • Lift irrigation, water supply

  • Agro processing - grain milling

  • Saw milling, lathe machine

Water mills
Water Mills Efficiency for Poverty Reduction

Traditional Water Mills

Improved Water Mill (IWM)

Paddy hulling with IWM

Source: AEPC

Barriers Efficiency for Poverty Reduction

  • High initial costs

  • Competition on investment from other sectors of the economy

  • Institutional shortcomings

    • Lack of coherent policy framework

    • Monopolistic role of national power utilities

  • Human Resources Requirements – local capability

  • Infrastructure constraints- access road, transmission line

  • Risks – for developer and lending agencies

  • Time and cost over-run

Design aids
Design Aids Efficiency for Poverty Reduction

Nepal case study
Nepal – Case Study Efficiency for Poverty Reduction

Nepal case study contents
Nepal Case Study- Contents Efficiency for Poverty Reduction

  • Potential and status

  • Hydropower Development Policy

  • Small Hydro Project (SHP) Financing Modalities

  • Investment scenario

  • Barriers and Constraints

  • Reform Process

  • Examples: SHP Implementation

Potential and status
Potential and Status Efficiency for Poverty Reduction

  • Potential

    • Theoretical potential – 83,000 MW

    • Economical potential – 42,000 MW

    • 727,000 GWh/year based on average flow

    • 145,900 GWh/year based on 95% exceedance flow

  • Status

    • Current hydro capacity over 600 MW

    • About 15% below 10 MW

    • In addition, 14.6 MW of MH (1-100 kW, 2200 schemes upto 2003)

    • 25,000 traditional water mills (0.5kW each)

Shp financing modalities
SHP Financing Modalities Efficiency for Poverty Reduction

  • Donor assisted concessional loans – presently only for large hydro

  • International private companies with commercial loan

  • National private companies with local commercial loan

  • National Utility (NEA) through local commercial loans – mainly between >5MW)

  • Government/donor support agencies like AEPC provide subsidy and technical support for micro hydro development

Cost composition
Cost Composition Efficiency for Poverty Reduction

National Electric Utility

International Private

National Private Sector

Average cost past projects
Average Cost – Past Projects Efficiency for Poverty Reduction

  • Public sector, donor concessionary projects (60MW – 144 MW) - $3,100 – $5,600/kW

  • Int’l private sector with int’l commercial financing (36 MW and 60 MW) - $2,400 - $2,800/kW

  • Local Pvt. Sector with local currency funding (3MW project Piluwa) - $1,450/kW

  • Micro Hydro (<100kW) - $1,982/kW

Nepali investment - showing the way to lower energy prices

Nepal investment scenario
Nepal- Investment Scenario Efficiency for Poverty Reduction

  • 7 projects (55MW) completed thru commercial credit from local banks (60m$), technical support by I/NGOs, Aid Agencies (e.g. WINROCK, USAID, GTZ)

  • Local banks and financial institutions (30m$/year)

  • Power bonds

  • Power development fund (30m $)

  • For 1-100 kW- subsidy provided by AEPC

Power development fund
Power Development Fund Efficiency for Poverty Reduction

  • Initial capital of US$ 35 million by Gov. of Nepal and the World Bank (WB)

  • To provide project finance “core funding” to supplement private sector

  • Partially finance up to 60% of < 10 MW hydropower projects and up to 40% > 10 MW

Barriers and constraints faced
Barriers and Constraints Faced Efficiency for Poverty Reduction

  • Institutional Framework - unclear and overlapping roles and responsibilities of existing institutions

  • Inadequate internal financial resources including mechanisms for its mobilizations on account of a capital market

  • Inconsistencies and conflicts in various acts/policies/ regulations

  • Shortcomings in the compliance of acts and regulations

  • Political risk and the adverse situation for investment

  • Market risk

  • License holding by IPPs

  • Shortage of a specialized human resource in financial institutions with professional expertise to appraise, implement and monitor hydropower projects

  • Isolated rural communities/loads (low load factor)

Source: IPPAN, 2004

Reform process
Reform Process Efficiency for Poverty Reduction

  • Hydropower Policy (1992, 2001)

  • New Electricity Act - unbundling

  • Rural Energy Policy (2006)

    • Electricity supply- 12% from isolated (micro/small) hydro systems, 3% from alternate sources

  • Community Electricity Distribution Bye-law (2003)

    • Rural Electric Entities (REEs) – bulk power from NEA, CBOs/NGOs own & manage distribution

    • 80% grant from government, 20% community participation

Reform process cont d
Reform Process (cont’d) Efficiency for Poverty Reduction

  • Market risks addressed by PPA

  • Support for pre-investment (cost sharing)

  • Due diligence training to financial institutions

  • Public – private complementarities

    • Local financing of hydropower projects- local FIs, employee provident funds, army welfare funds

    • Public Sector – multipurpose, larger projects and transmission line

Hydropower policy 2001
Hydropower Policy - 2001 Efficiency for Poverty Reduction

  • Drivers

    • Increase access to electricity & contribute towards energy security

    • Stimulate economic growth

    • Attract private investment

    • Facilitate power trade

  • Incentives

    • No license required for SHP up to 1 MW

    • No royalty imposed for SHP up to 1 MW

    • Rs 100 ($1.4)/kW & 1.75% energy royalty for 15 years and Rs 1000 ($14)/kW & 10% energy royalty thereafter

    • 1% royalty to village development committees

  • Policy/reform measures in the offing

    • Unbundling of national power utility (NEA)

    • Handing over of small hydro to communities and private sector by NEA

Shp policy
SHP Policy Efficiency for Poverty Reduction

  • Fixed buy back rate (up to 5 MW)

    • Rs 3.00 ($0.04) for wet seasons (mid Apr. – mid Nov.)

    • Rs 4.25 ($0.057) for dry seasons (mid Nov. – mid Apr.)

    • + 6% annual escalation for the first 5 years

    • + from Q90% design flow was reduced Q65%

  • For 5MW – 10 MW – at (competitive) negotiated price basis

Shp examples

SHP Examples Efficiency for Poverty Reduction

Improved Water Mill Efficiency for Poverty Reduction

Turbine Mill

Micro Hydro

  • 63% community owned

  • 37% privately owned

  • About 9.2 HH/kW

Data source- AEPC (2005)

Micro Hydro

Piluwa khola 1
Piluwa Khola Efficiency for Poverty Reduction1

  • Installed Capacity : 3 MW

  • Plant Load Factor : 74.4 %

  • PPA Signed on : 2000 Jan.

  • Contract energy : 19.54 GWh

  • Dry months : 4.89 GWh (25%)

  • Wet months : 14.65 GWh (75%)

  • Production Started : 2003 Sep.

  • Commercial Operation : 2003 Oct

  • Company Established in March 1997

1 Source: Pandey, 2005

Piluwa khola
Piluwa Khola Efficiency for Poverty Reduction

  • Total cost – 4.6 m$

  • Cost/kW – 1462 $/kW

  • Consortium financing

  • Loan from local banks - 56%

  • Equity – 35%

  • Bridge gap loan – 9%

Piluwa khola1
Piluwa Khola Efficiency for Poverty Reduction

  • Nepal Electricity Authority pays the bill of the purchased energy every month with a time lag of 35 days.

  • The payment comes directly to the lead bank account. The bank deducts the principal and interest of the loan from the payment.

  • The company gets remaining balance if there is something left over.

Jhankre mini hydro 2
Jhankre Mini Hydro Efficiency for Poverty Reduction2

  • 500 kW plant with H= 180m Design Q=450l/s

  • Intake shared with Farmer Managed Irrigation Project – 13 ha (conflict in operation)

  • Owner Khimti Power developer

  • Now being handed over to community

  • Plant built to replace diesel generators during construction of Khimti Project (60MW)

  • After Completion of Khimti- for rural electrification (~5000 HH supplied)

2 Source: Karki, 2004

Jhankre power sharing agreement
Jhankre – Power Sharing Agreement Efficiency for Poverty Reduction

  • Temporary irrigation supply during construction

  • Hydro developer to refurbish irrigation canal

  • Employment priority to local

  • Existing irrigation water requirements for wheat, rice seedlings and rice prioritized

Thank you
Thank You Efficiency for Poverty Reduction