Micro-Hydro Power - Analysis of Costs - Revision history

Michel andre: /* Further reading/documents: */

2015-09-30T11:13:27Z

Michel andre: /* Further Information */

2015-09-30T10:57:26Z

Further Information

Michel andre: /* Further Information */

2015-09-15T09:31:26Z

Further Information

Wiki Gardener at 12:49, 12 January 2015

2015-01-12T12:49:41Z

Wiki Gardener at 12:47, 12 January 2015

2015-01-12T12:47:59Z

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Ranisha at 09:22, 14 August 2014

2014-08-14T09:22:28Z

Ranisha: /* Further Information */

2014-07-30T14:14:42Z

Further Information

Ranisha: /* Overview */

2014-07-30T14:11:23Z

Overview

Ranisha at 14:07, 30 July 2014

2014-07-30T14:07:12Z

Ranisha at 10:35, 17 July 2014

2014-07-17T10:35:29Z

@@ Line 111: / Line 111: @@
 <br/>
 = Further reading/documents: =
-*[http://www.microhydropower.net/download/mhpcosts.pdf|Cost Cost and Revenue Structures for Micro-Hydro Projects in Nepal]
+*[http://www.microhydropower.net/download/mhpcosts.pdf Cost and Revenue Structures for Micro-Hydro Projects in Nepal]
 *[http://practicalaction.org/media/view/6537 ITDG Best practices for sustainable development of micro hydro power in developing countries]

@@ Line 95: / Line 95: @@
 *Support the creation of a unique market for MHP along with other neighbouring countries.
 [[Micro-Hydro Power - Analysis of Costs#Overview|►Go to Top]]
@@ Line 105: / Line 106: @@
 *[[Micro-Hydropower Plants - Estimation of Management Costs|Micro-Hydropower Plants - Estimation of Management Costs]]<br/>
 *[[:File:Psp hydro rwanda baseline report - rwi2009.pdf|Hydro Rwanda Baseline Report 2009]]
 *[http://electrical-engineering-portal.com/what-would-be-the-cost-of-micro-hydro-plant electrical engineering portal: what would be the cost of a micro hydro plant]
-−

@@ Line 95: / Line 95: @@
 *Support the creation of a unique market for MHP along with other neighbouring countries.
 [[Micro-Hydro Power - Analysis of Costs#Overview|►Go to Top]]
@@ Line 103: / Line 104: @@
 *[[Portal:Hydro|Hydro Portal on energypedia]]<br/>
 *[[Micro-Hydropower Plants - Estimation of Management Costs|Micro-Hydropower Plants - Estimation of Management Costs]]<br/>
-*[[:File:Psp_hydro_rwanda_baseline_report_-_rwi2009.pdf|Hydro Rwanda Baseline Report 2009]]
+*[[:File:Psp hydro rwanda baseline report - rwi2009.pdf|Hydro Rwanda Baseline Report 2009]]
 = References<br/> =

@@ Line 15: / Line 15: @@
 [[Micro-Hydro Power - Analysis of Costs#Overview|►Go to Top]]<br/><br/>
 = Data Collection<br/> =
-Over time, PSP Hydro has created a database with the detailed breakdown of costs of the MHP plants co-financed by GIZ/EnDev Rwanda. In order to complete this database, PSP Hydro has started a campaign of data collection of detailed breakdown of costs of MHP plants developed by other stakeholders in the country. Institutions that have provided information so far are: BTC, EU, MININFRA, UNIDO and SHER. PSP Hydro has also received information of MHP projects from GIZ/EnDev Ethiopia and GIZ Madagascar and will soon receive information from GIZ/EnDev Mozambique and GIZ/EnDev Uganda. Since most of the MHP projects from which data have been collected are still under construction, available information is not definitive yet. However, its provisional analysis can already provide clues for the confirmation or disregard of some of the above mentioned possible causes and the identification of new ones if any.
+Over time, PSP Hydro has created a database with the detailed breakdown of costs of the MHP plants co-financed by GIZ/EnDev Rwanda. In order to complete this database, PSP Hydro has started a campaign of data collection of detailed breakdown of costs of MHP plants developed by other stakeholders in the country. Institutions that have provided information so far are: BTC, EU, MININFRA, UNIDO and SHER. PSP Hydro has also received information of MHP projects from GIZ/EnDev Ethiopia and GIZ Madagascar and will soon receive information from GIZ/EnDev Mozambique and GIZ/EnDev Uganda. Since most of the MHP projects from which data have been collected are still under construction, available information is not definitive yet. However, its provisional analysis can already provide clues for the confirmation or disregard of some of the above mentioned possible causes and the identification of new ones if any. Results of the analysis so far are shown in the next sections.
-Results of the analysis so far are shown in the next sections.
+== <br/>Result 1: Specific Cost (€/kW) ==
-== <br/>Result 1: Specific Cost (€/kW)  ==
+Figure 1 shows the cost per kW of several MHP plants in [[Rwanda Energy Situation|Rwanda.]] Most of the plants are at the level of 3.000 €/kW and above. In addition, the figure puts in evidence that economies of scale work for MHP and the specific cost (€kW) decreases when the size of the plant rises.
-Figure 1 shows the cost per kW of several MHP plants in [[Rwanda Energy Situation|Rwanda.]] Most of the plants are at the level of 3.000 €/kW and above. In addition, the figure puts in evidence that economies of scale work for MHP and the specific cost (€kW) decreases when the size of the plant rises.
+<u>Figure 1: cost for MHP projects in Rwanda</u>:<br/>[[File:Figure 1 - cost for MHP projects in Rwanda.gif|thumb|center|491px|Cost for MHP projects in Rwanda|alt=Figure 1 - cost for MHP projects in Rwanda.gif]] Plants that are below the threshold of 3.000 €/kW are the 7 plants financed by MININFRA and build by the Sri Lankan engineering company HPI. Their initial budget has recently been reviewed and it has been concluded that, in average, will have to be increased in 30-40% in order to conclude the works.
 Figure 2 shows the cost of MHP plants in Madagascar. Compared to Rwanda, plants in Madagascar have a quite significant lower cost. This difference can be due to the fact that, in most of the cases, costs in Madagascar do not include the distribution system.<br/><u>Figure 2: cost for MHP projects in Madagascar:</u>[[File:Figure 2 - cost for MHP projects in Madagascar.gif|thumb|center|492px|Cost for MHP projects in Madagascar|alt=Figure 2 - cost for MHP projects in Madagascar.gif]] The bigger plant is one of the cases in which the cost of all components, including distribution, has been considered. This plant has a MV line of 20 km, which is significantly long for the small size of the generation capacity of the project and this may explain why the total cost is within the same range of costs as in Rwanda.
 == <br/>Result 2: Civil Works ==
 Cement is a basic material for the civil works of a MHP plants because is a basic component of concrete. Rwanda has only one small cement factory which is not big enough to cover the local demand. As a consequence, cement has to be imported. Table 1 shows the differences in the cost of a 50 kg bag of cement in three different African countries. The cost in Rwanda is far above the other two countries. A reason for that may be the fact that Rwanda is a landlocked country and, in addition, has a small market. Kenya and Tunisia have direct access to the see and have bigger markets.<br/>
@@ Line 40: / Line 36: @@
 | style="text-align: center" | 2.500
 |}
-== <br/>Result 3: Distribution System  ==
+== <br/>Result 3: Distribution System ==
 Table 2 shows that cost per km of both LV and MV lines in Rwanda are higher than in any other countries within the region. Since the cost in South Africa is similar to the one in Rwanda and standards in South Africa are higher than in other African countries, this could confirm that also standards in Rwanda are higher.<br/>
 {| cellspacing="1" cellpadding="1" border="1" align="center" style="width: 300px"
@@ Line 73: / Line 69: @@
 |}
 <br/>An EnDev project is working in Benin on grid densification. This project uses good standards but lines are supported by wooden poles, which is a main reason of why the cost is a fourth of the one in Rwanda. Therefore, cost could be reduced in Rwanda following a similar approach.
-== <br/>Result 4: Loan Conditions  ==
+== <br/>Result 4: Loan Conditions ==
 Table 3 shows the significant difference in loan conditions offered by commercial banks in Europe and in Rwanda for MHP projects. Such demanding conditions in Rwanda are not attractive for investors, which have to provide a significant percentage on equity to reduce the need of a loan as much as possible.<br/>
 {| cellspacing="1" cellpadding="1" border="1" align="center" style="width: 300px"
@@ Line 89: / Line 85: @@
 | style="text-align: center" | <= 6 years
 |}
 Commercial bank conditions in Rwanda are similar to most of sub-Saharan countries.
 = Conclusion and Recommendations<br/> =
-Although the analysis on costs for MHP in Rwanda has not been completed, it can be concluded that there is still room for reduction of these costs. <u></u>
+Although the analysis on costs for MHP in Rwanda has not been completed, it can be concluded that there is still room for reduction of these costs. <u>Some recommendations that MININFRA could consider and implement with the support of PSP Hydro are:</u>
 *Complete analysis on costs for MHP, including full comparison between GIZ projects, also from Asia and Latin America.
 *Promote the use of regional experts instead of international ones.
@@ Line 102: / Line 95: @@
 *Support the creation of a unique market for MHP along with other neighbouring countries.
 [[Micro-Hydro Power - Analysis of Costs#Overview|►Go to Top]]
 = Further Information =
@@ Line 107: / Line 101: @@
 *[[Costs of Micro-Hydro Power Sites|Costs of Micro-Hydro Power Sites]]<br/>
 *[[Micro-Hydro Power Institutions|Micro-Hydro Power Institutions]]<br/>
-*[[Portal:Hydro|Portal:Hydro]]<br/>
+*[[Portal:Hydro|Hydro Portal on energypedia]]<br/>
 *[[Micro-Hydropower Plants - Estimation of Management Costs|Micro-Hydropower Plants - Estimation of Management Costs]]<br/>
 = References<br/> =
 <references />
 [[Category:Hydro]]

@@ Line 1: / Line 1: @@
 = Overview<br/> =
-Literature on '''[[Costs of Micro-Hydro Power Sites|micro-hydro power (MHP)]]''' tells us that the cost of this type of installations ranges between 1.500 € and 3.000 € per kW installed. However, MHP projects promoted by '''[[:File:Psp hydro rwanda baseline report - rwi2009.pdf|PSP Hydro (GIZ / EnDev)]]''' in Rwanda have a cost per kW between 3.000 and 6.000 €.
+Literature on '''[[Costs_of_Micro-Hydro_Power_Sites|micro-hydro power (MHP)]]''' tells us that the cost of this type of installations ranges between 1.500 € and 3.000 € per kW installed. However, MHP projects promoted by '''[[:File:Psp_hydro_rwanda_baseline_report_-_rwi2009.pdf|PSP Hydro (GIZ / EnDev)]]''' in Rwanda have a cost per kW between 3.000 and 6.000 €.
 PSP Hydro provides technical assistance and financial support to local private SMEs for the design, construction and operation of MHP plants. It might be that this particular approach is the reason for such a high cost. However, compared to the costs of MHP plants totally financed by public funds confirmed that, general speaking, costs are higher in Rwanda than in any other countries within the region.
 The direct consequence of this is that MHP projects in [[Rwanda_Energy_Situation|Rwanda]] can not be developed without a grant of, at least, 50% of the total investment cost, which prevents the consolidation of private participation in the sector and limits the number of new projects that PSP Hydro can support. Therefore, PSP Hydro has started an analysis to identify the causes of such high costs in order to eventually find solutions. The initial results of this analysis are presented in this article.
 = Possible Causes<br/> =
@@ Line 25: / Line 23: @@
 *<u>Donor contributions bring cheap money</u>: most of MHP plants recently completed or under construction have been completely financed by public money. Since, in many cases, these funds come from donor contributions, the lack of ownership may cause a lack of responsibility for its efficient expenditure.
-<br/>
+[[Micro-Hydro_Power_-_Analysis_of_Costs#Overview|►Go to Top]]<br/>
 = Data Collection<br/> =
@@ Line 140: / Line 138: @@
 Commercial bank conditions in Rwanda are similar to most of sub-Saharan countries.
-<br/>
+[[Micro-Hydro_Power_-_Analysis_of_Costs#Overview|►Go to Top]]
 = Conclusion and Recommendations<br/> =
@@ Line 154: / Line 152: @@
 *Support the creation of a unique market for MHP along with other neighbouring countries.
-<br/>
+[[Micro-Hydro_Power_-_Analysis_of_Costs#Overview|►Go to Top]]
 = Further Information =
@@ Line 162: / Line 159: @@
 *[[Micro-Hydro Power Institutions|Micro-Hydro Power Institutions]]<br/>
 *[[Portal:Hydro|Portal:Hydro]]<br/>
-*[[Micro-Hydropower_Plants_-_Estimation_of_Management_Costs|Micro-Hydropower Plants - Estimation of Management Costs]]<br/>
+*[[Micro-Hydropower Plants - Estimation of Management Costs|Micro-Hydropower Plants - Estimation of Management Costs]]<br/>
 = References<br/> =
@@ Line 169: / Line 169: @@
 <references />
 [[Category:Hydro]]

@@ Line 2: / Line 2: @@
 = Overview<br/> =
-Literature on '''[[Costs_of_Micro-Hydro_Power_Sites|micro-hydro power (MHP)]]''' tells us that the cost of this type of installations ranges between 1.500 € and 3.000 € per kW installed. However, MHP projects promoted by '''PSP Hydro (GIZ / EnDev)''' in Rwanda have a cost per kW between 3.000 and 6.000 €.
+Literature on '''[[Costs_of_Micro-Hydro_Power_Sites|micro-hydro power (MHP)]]''' tells us that the cost of this type of installations ranges between 1.500 € and 3.000 € per kW installed. However, MHP projects promoted by '''[[:File:Psp_hydro_rwanda_baseline_report_-_rwi2009.pdf|PSP Hydro (GIZ / EnDev)]]''' in Rwanda have a cost per kW between 3.000 and 6.000 €.
 PSP Hydro provides technical assistance and financial support to local private SMEs for the design, construction and operation of MHP plants. It might be that this particular approach is the reason for such a high cost. However, compared to the costs of MHP plants totally financed by public funds confirmed that, general speaking, costs are higher in Rwanda than in any other countries within the region.
-The direct consequence of this is that MHP projects in Rwanda can not be developed without a grant of, at least, 50% of the total investment cost, which prevents the consolidation of private participation in the sector and limits the number of new projects that PSP Hydro can support. Therefore, PSP Hydro has started an analysis to identify the causes of such high costs in order to eventually find solutions. The initial results of this analysis are presented in this article.
+The direct consequence of this is that MHP projects in [[rwanda_energy_situation|Rwanda]] can not be developed without a grant of, at least, 50% of the total investment cost, which prevents the consolidation of private participation in the sector and limits the number of new projects that PSP Hydro can support. Therefore, PSP Hydro has started an analysis to identify the causes of such high costs in order to eventually find solutions. The initial results of this analysis are presented in this article.
 <br/>
@@ Line 35: / Line 35: @@
 <br/>'''Result 1: specific cost (€/kW)'''
-Figure 1 shows the cost per kW of several MHP plants in [[Rwanda_Energy_Situation|Rwanda.]] Most of the plants are at the level of 3.000 €/kW and above. In addition, the figure puts in evidence that economies of scale work for MHP and the specific cost (€kW) decreases when the size of the plant rises.
+Figure 1 shows the cost per kW of several MHP plants in [[Rwanda Energy Situation|Rwanda.]] Most of the plants are at the level of 3.000 €/kW and above. In addition, the figure puts in evidence that economies of scale work for MHP and the specific cost (€kW) decreases when the size of the plant rises.
 Figure 1: cost for MHP projects in Rwanda<br/>[[File:Figure 1 - cost for MHP projects in Rwanda.gif|center|491px|Figure 1 - cost for MHP projects in Rwanda.gif|alt=Figure 1 - cost for MHP projects in Rwanda.gif]]
@@ Line 158: / Line 158: @@
 *[[Costs_of_Micro-Hydro_Power_Sites|Costs of Micro-Hydro Power Sites]]<br/>
 *[[Micro-Hydro_Power_Institutions|Micro-Hydro Power Institutions]]<br/>
 = References<br/> =
@@ Line 163: / Line 164: @@
 <references />
 [[Category:Rwanda]]