Costs of Micro-Hydro Power Sites

Overview

Micro-Hydro Power (MHP) projects come along with a big variety of costs. Planning and developing a site brings a number of country, probably regional specific costs. Similar to that are costs for operation and maintenance. All different cost categories play a role for individual projects, while big difference between countries due to different framework condition might occur. A clear cost analysis upfront is highly recommended.

Costs

Cost Factors are Eventually:

• a locations feasibility check by respective personal
• land/water ownership/usage
• civil construction (canal, wear, intake, pipes, powerhouse)
• electro-mechanical equipment (turbine, generator, load controller)
• power grid (evtl. transformers, powerlines, house-cabeling, load limiters, meter installation, ...)
• operation & maintenance (collecting tariffs, running and maintaining the assets)

Some remarks regarding costs:

• Land & water requirements are mostly small. But there may be interference with existing schemes (irrigation) or legal issues to be considered.
• Order to delivery of electro-mechanical equipment may take half a year. Ensure to order in time.
• Costs for power lines and household connections often require a substantial amount from the overall budged.
• Any mhp scheme supplying a group of households has to install fixed procedures to cover operation & maintenance.
  
• This includes the collection of tariffs from each user.

Example: Micro-Hydro Power (MHP) Costs in Rwanda

• A special chapter about the management costs was developed, too.

-> Rwanda Energy Situation

Further Information

• Hydro Portal on energypedia
  
• Cost and Revenue Structures for Micro-Hydro Projects in Nepal
• ITDG Micro-Hydropower Plants - Estimation of Management Costs