AFRETEP 1ST Regional Workshop Kampala, Uganda 2011

DESIGN ASPECTS AND

SUSTAINABILITY OF
MINI/MICRO HYDROPOWER
SCHEMES

Emmanuel G. Michael
Renewable Energy Projects Consultant
UNIDO

EAST AFRICAN REGION AFRETEP PROJECT WORKSHOP

An European Commission training initiative for experts in energy
Kampala, Uganda: 03-07 October 2011
• MHP systems overview
• SHP design and development
• Sustainability aspects
• Policy and regulatory issues
• Financing issues
• Case studies/success stories
• Empowerment
• Local participation and decision making
• Equity
• Flexible local contribution in cash or kind
• Construction by community
• Comprehensive training for selected village
youth
• Sustainability
• Livelihoods
• Improving quality of life:
– Light, Drinking Water Supply Health and
Sanitation, etc
• Supplementing Traditional livelihoods:
– Irrigation, Adding value to local produce, etc
• Opening New Avenues of Employment:
– Tourism, Eco-tourism, processing non-wood
forest produce, IT, Marketing etc
• Conserving Forest and Environment:
– Promoting use of Power at Household level
UK < 5 MW
UNIDO < 10 MW
India < 25 MW
Sweden < 15 MW
Colombia < 20 MW
Australia < 20 MW
China < 25 MW
Philippines < 50 MW
New Zealand < 50 MW
Iran < 10 MW
Capacity ranges
Pico < 5 kW
Micro < 100 kW
Mini < 1MW
Small < 10MW

Head ranges
High 75 m & above
Medium 30-75 m
Low 3-30 m
Ultra low below 3 m
Pros
• Efficient energy source
– Takes little water
– Allows substantial distribution
• Reliable electricity source
• No reservoir required
• Cost effective energy solution
• Power for developing countries
• Integrate with the local power grid
Cons
• Suitable site characteristics required
• Energy expansion not possible
• Low-power in the dry period
• Small streams do not provide enough
force to generate power
• A large water reservoir is required
• Hydro generators will damage the local
ecosystem
• Micro hydro electricity is unreliable
• The electricity generated is low quality
• Hydro power is free
* Civil Works
- Intake/Diversion Weir.
- Power Channel.
- Desilting Tank.
- Forebay Tank.
- Penstock.
- Power House Building.
- Tail Race.
* Electromechanical Equipment
- Turbine.
- Generator & Controls.
- Power transmission & distribution network
Diversion Weir De-silting Tank Canal Headrace

Forebay Tank Penstock Route Power House

 Power evacuation

Turbine, generator & Control panel

• Location and Accessibility of Site
– It is preferable to select the site near the load centre and
convenient for access. In the first place we relocate these sites
on small scale map, and then proceed with reconnaissance.
• Condition of Water Resources
– This is most vital factor to determine whether or not the site is
feasible. It is important to locate the project on a river with
abundant (or sufficient) runoff and having stable base flow (a
perennial river) is careful to avoid setting MHP station on an
intermittent stream.
• Topographical Conditions
– This may influence mostly the construction cost of MHP. We
should take the advantage of the narrow water (canyon or
gorge), natural fall, chute, river bend, bifurcation and interbasin
development to get higher water head with less amount of
engineering.
• Geological Condition
– Geological condition may rank second to topographical for MHP. Special
attention should be put
– in the foundation of intake weir, open canal, forebay and powerhouse. Landslide
is main risk for MHP projects
• Multipurpose Utilization
– This may command the site selection when irrigation or other water users are in
urgent need.
– In this case, careful balance of the runoff for different utilities is important.
– River Planning, Cascade Development of Small River. It is better to select a site
coinciding with the overall river planning or cascade development, i.e the
selected site is just one of the planned cascades. One of following cases should
be avoided: the selected site is just located in the reach of backwater of future
reservoir, or the site would be eliminated in the near future when hydropower
projects have been built.
• Local Materials
– Making use of indigenous raw material for civil engineering is a principle for MHP
construction, it will greatly reduce the project cost.
• Run-of-river
• Canal fall based
• Dam Toe based
Basic Equation for Power
Power in kW = Q.H.9.81.n
Where, Q Discharge in m3
H Head in metres
n Overall efficiency of turbine, gear-
box & generator
The annual energy generated is computed from
the flow, flow duration curve or energy equation:
E = t.p
= n.g.H [kWh/year]
Where t = time in hours (8750 per year)
Continent Potential Installed Hydro Planne Under Small Percentag
/ Country Theoretical Capacity Supplie d Hydro Construction Capacity e of small
TWh/Year GW s GW GW GW w.r.t large
% hydro

Africa 1750 20.92 > 50 77.5 3.024 0.333 1.59

Asia 6800 244.8 > 50 1.75 72.70 0.343 0.14

Australia 200 13.20 > 50 0.65 0.177 0.102 0.77

Europe 1035 177.4 50 10 2.27 9.50 5.36

North & 1663 157.7 > 40 15 5.79 4.302 2.73

Central
America

South 2700 114.4 > 50 59.5 16.75 1.113 0.97

America

China 1920 82.7 > 17 50 35.00 30.51 38.00

India 660 28.50 > 25 37 5.27 1.50 5.26

The key barriers hindering the development of SHP in Africa can be
summarised as follows:

• Lack of infrastructure in the design and manufacture of turbines, installation

and operation
• Lack of access to appropriate technologies pico, micro, mini and small
hydropower. Networking, sharing of best practices and information
dissemination through forums and conferences
• Lack of local capacity (local skills and know how) in developing SHP
projects. There is the need for technical assistance in the planning,
development and implementation
• Lack of information about potential sites (hydrological data)
• Lack of SHP awareness, incentives and motivation
• Lack of private sector participation in SHP development.
• Lack of joint venture (public and private sector partnership)
Kato T. Kabaka and Florence Gwang’ombe, TANESCO
• Reconnaissance/pre-feasibility study
• Feasibility study (including EIA where
applicable)
• Project construction
• Project operations
s/n Item Commercial Social Sector
Project above 500 Project below 500
kW kW
1. Reconnaissance Level report yes yes

2. Pre-feasibility Report Yes yes

3 months 2 months

a Detailed Investigations Yes Limited

4-12 months 1-3 months
b Feasibility Report Yes Not required
6 months
c Financial Approval yes yes

d Detailed Construction drawings Yes Limited 1- 2

and technical specifications 3-6 months months
• How much energy is needed.
• For what purpose and in what form e.g. Mechanical, heat, electricity
• Are members of the community willing and capable of paying for the
proposed supply
• What economic and social activities will the project stimulate e.g.
Food processing, potable water distribution, small cottage industries,
etc.
• Disadvantage of system e.g. Loss of jobs, etc. If any.
• Will the scheme be effectively managed over a long period (say
15years)
• What capability and /or past experience exist for effective
management
• Organization of tariff collection, keeping financial accounts, resolving
conflicts, etc.
• What further assistance is required to raise capability to required
level, if any.
• The purpose of a hydrological study is to
predict the variation in the flow during the
year

– Annual hydrograph, and

– Flow Duration Curve (FDC)

Annual Hydrograph
Flow Duration Curve
A detailed study containing:
• Energy demand; as discussed under Capability and Demand Survey
• Water Demand
• Future Demand Trend
• Energy Supply Options; involves a brief survey and costing tables of
various energy inputs including traditional fuels currently in use.
Comparative costing of energy sources which are alternatives to hydro, or
as auxiliary sources in combination with hydro
• Management Capability; as discussed under Capability and Demand
Survey
• Hydro Potential; this contains a hydrograph that shows irrigation and other
non-hydro water demand. Both hydrograph and FDC should have axes
marked to show the conversion of flow to hydropower.
• Hydro Design; this is sub-divided into civil works components, penstock,
hydromechanic component, hydromechanic equipment (gates and valves),
turbine and generator, and transmission and distribution of power
• Plant Factor; involves balancing supply and demand. It comments on the
availability of power when needed
• Integrated Water Use; this analyzes how management of the hydro project
can be integrated with the management of irrigation, industrial and domestic
uses of available water supply
• Management Matters; this basically comments on how O + M procedures
and integrated water use procedures above are going to be implemented,
the requirements and costs involved
• Schedule of Operations; a time chart starting with planning and design
approval stages, through to commissioning
• Cost Analysis; a one page summary of project cost
• Revenue; statement of the various possible ways by which project will
generate revenue
• Proposed Tariff Structure
• Financial Analysis; a report that demonstrates the economic viability of
scheme
• Sources of Finance; a statement of the recommended bases for financing
the scheme
• Socio-Economic Viability; draw together conclusions already made above
on financial viability, management capability, O + M arrangements, and
comments on factors which may threaten sustainability
• Monitoring and Contingency Plans.
• Design aspects
– Technical
– Social-economic
– Environmental
• Equipment selection
– Types of turbines and characteristics
– Control systems
– Evacuation models
Basic Data Requirement
• Regulation of the reservoir and annual run-off
• Layout plan, purpose and type of the power station related
hydrological, geological and topographical data.
• Stage discharge regulation curve.
• Data of water temperature, aquatics water quality and sedimentation
of the river on which the power station is to be built.
• Load features of the power station
• Annual head curve
• Typical daily head curve
• Function and position of the power station in the power system.
• Charts of turbine type, application curve and application range of
turbine series.
Sizing of turbine depend on the flow characteristics of river or stream
to be used
 Types of Suitable for Remarks
Turbine Head in m Flow in cumec
Water Wheel Simple technology low efficiency,
suitable for low head and small flow
locally manufactured
Cross flow 1-200 0.3-9
Turgo 40-300 1-8
Pelton 45-1000 0.06-3
Francis 8-200 0.3-6 Relatively poor part load efficiency.
Economical above about 60 kW
rating
Kaplan 1.1-70 3-70 Generally uneconomical for heads
(Vertical) below 4 meters high runway speed
Axial flow
(a) Straflow 2-50 3-20
(b) S-Type 2-20 3.5-30
(c) Bulb 1.25-25 3-70
NOZZLE RUNNER SHAFT

FLINGER BEARING

Cross flow turbine

Pelton turbine
Francis turbine
Kaplan turbine
PUMP AS TURBINE
Factors governing turbine selection

A. Head and discharge

B. Specific speed
C. Variation of head
D. Maximum efficiency
E. Part load efficiency
F. Initial cost of civil works
G. No. of units
H. Running and maintenance cost
I. Cavitation characteristics
J. Transporting limitations
Generator

• The hydro-turbine generator has lower speed, larger inertia

and higher strength than a steam turbine generator so as to
with stand higher runaway speeds.
• In selecting generators, the main parameters to be considered
are:
– Capacity
– Voltage
– Speed
– Excitation mode
– Main shaft arrangement and bearings
– Enclosure / casing.
– Site selection
• Technical – available resources, accessibility, skills
• Social – cultural issues, social acceptability
– Community mobilisation
• Community involvement in project appraisal
• Community participation in project implementation
– Local authority involvement
– Management and ownership style
• Community Cooperatives
• Sole Entrepreneurial
• Utility
• Use of the generated power
– Commercial/productive versus domestic
– Financial analysis
• PBP – time at which the project investment is
returned (break even). The length of time required
to recover the cost of an investment.
• NPV - the value of all future cash flows, discounted
at the discount rate, in today's currency.
 – IRR – The discount rate often used in capital budgeting
that makes the net present value of all cash flows from a
particular project equal to zero. Generally speaking, the
higher a project's internal rate of return, the more desirable
it is to undertake the project. Also referred to as ROI
– BCR - A ratio attempting to identify the relationship
between the cost and benefits of a proposed project
(qualitative and quantitative)
• Availability of support policy and regulatory
environment
• Technology and site matching
– Technology used
– Available skills for maintenance
 Sustainability factors - broad
Monitoring and
follow up plans + Project
Replication

+
Initial planning
+ Project procedures
Developers acceptability + Management and
exit strategy ownership model
+ +
+ Productive +
Quality of uses of
installation + Integration with electricity
other development +
+ activities + +
Continuity of + + + Tariff Affordability
water flow Reliability of structure to pay bills
electricity supply SUSTAINABLE
+ MHP
+ SYSTEMS +
DEVELOPMENT 
+
Demand- +
supply balance Human resource Community
capacity participation
+ +
+
Willingness
Access to + to pay
spare parts + +
Plant
maintenance
+

Michael, Emmanuel G. (2008)
 Monitoring and
follow up plans

Sustainability factors - critical + Project

Replication

+
Initial planning +
procedures
+ Project Management and
Developers exit acceptability + ownership model
strategy

+ +
+ Productive uses +
Quality of of electricity
installation + Integration with other
development activities
+
+ + +
Continuity of + + + Tariff Affordability to
water flow Reliability of structure pay bills
Electricity Supply SUSTAINABLE
MHP
+ SYSTEMS
+ DEVELOPMENT +
+
Demand-supply +
balance Human resource Community
capacity participation
+ +
+
Willingness to
Access to spare pay
+
parts
+ +
Plant
Maintenance

Michael, Emmanuel G. (2008)
• Government incentives (size, location,
ownership)
• Policy statements backed up with enforceable
regulations
• Energy regulatory authorities
• Renewable Energy promotion agencies, etc
• Regulation guiding development of projects
• Water rights/permits
• EIA clearance
• Power generation and use
• Land use permits, etc
• Simplifying the licensing procedures by possibly creating a
single window,
• Simplifying procedures when refurbishing abandoned sites,
• Creating a stable regulatory framework to reduce uncertainty,
• Implementing a price system that takes into account the positive
externalities of this energy source compared to fossil fuels.
• Investment subsidies
• Soft loans
• Energy Taxes
• Tax credits
• High feed in tariffs
• Supported price (green tariffs, green portfolios, tenders for
specific electricity sources).
Sl. Item Low Head High Head
No.
1. Capital Cost for SHP 1200 to 1500 $ pr 1200 to 1500 $
kW Per KW
2. Electricity Generation 4000-6000
Annual Cost of Generation 3500-5000
Depending upon water availability kWh/year/kW kWh/year/kW

a Interest 8% 10 %

b O&M 4% 4%

c Depreciation 3% 3%

d Insurance 1% 1%

Total 16 % 16%

Cost of Generation at 60% plf 3-4 cents $ per 6-8 cents $ per
kWh kWh
Cost category Percentage of
total
Civil work design, supervision, 10%
etc
Electromechanical equipment 10-15%
(Generator, control, other
electrical accessories)
Penstock 5-10%
Civil structures 40-60%
Turbine and valves 5-35%
Many financing structures available,
depending on the prevailing situation, some
are:

• Corporate Financing
• Sale before Construction
• Sale after Construction
• Investor Ownership Flip
• Leveraged Ownership Flip and Pay-As-You-Go ("PAYGO")
• Back Leveraged Structure
• Leveraged Lease
• Homeowner Model
• Green financing – carbon credits
• Cooperate financing
• Sale before construction
• Sale after construction
• Investor ownership flip
• Leverage lease
• Home owner model
• Green financing – carbon credits

– Regulated Market
• Kyoto CDM
– Agreements between industrialised country (Annex I) and
developing country (Non-Annex I)
– Follows strict procedures as per the Kyoto agreement
– Often good price for the CERs

– Unregulated market
• Voluntary agreements
• Follows relatively simple procedures
• Often low prices for the CERs
HYDROPOWER IS EFFECTIVE FOR CDM

• Hydropower is one of few carbon-free energy

sources capable of large scale & low cost generation
→ large potential of GHG reduction
• If all of the “technically exploitable capability” is
exploited, CO2 reduction will be …
technically exploitable capability 11,570 TWh
× emission factor 0.5 t-CO2/MWh
= 5.79 billion t-CO2（25％ of world’s CO2 emission)
71
CDM IS EFFECTIVE FOR HYDROPOWER

• Construction cost: 2,500 $/kW, operation rate 50%,

payout period 50 years
⇒ electricity price: 3.1 cents/kWh（IRR 5%）
5.8 cents/kWh（IRR 10%）
• If CO2 reduction unit is 0.5kg-CO2/kWh and carbon
credit is $5/t-CO2 , additional income will be 0.25
cent/kWh
– CO2 reduction effect： 4 ～8 % of electricity price
• Carbon finance may become important for hydro-
power development

72
• Which financing structure?
• Equity
• Debt
• Guarantee
• Relief/incentives
Equity 
Sub Category Function Source

Ordinary Shares Risk capital from developer or sponsor Sponsor

Senior to ordinary shares, typically from tax Institutional Investors
Preference Shares investor; sometimes providing a cumulative Investment Funds
dividend. Tax Investors

Guarantee 
A commercial lender provides a loan to the
project entity (the importing entity), at below
market interest rates. The Export-Import bank
Exchange Rate Risk Export Credit Agency
provides compensation for the difference
between commercial rate and below-market
rate
Limited protection against risks of sovereign
Political Risk non-performance and against certain Force Word Bank
Majeure risks.

Relief /Incentives
Tax Credits
Tax Holidays Individual governments may offer tax incentives Host governments
Duty exemption
Other forms of
Connection, capacity, purpose, etc Host governments
incentives
Debt
Sub Category Function Source

Usually fixed rate, long-term and unsecured. May

Subordinated Loan be considered as equity. Can be used to cover Lenders specialising in
/ Mezzanine construction overruns or other guaranteed mezzanine debt
payments

Loan provided by two or more lenders, governed

by a single loan agreement. May have different
Syndicated Loans Banks
agreements for construction and operating phase
of project. Provide long-term finance

Senior Debt - Large unsecured loans are only available to

unsecured / creditworthy corporations. Banks tend to limit Commercial banks
secured their risk to 5 - 10 years.

ƒ Lender with project

experience

ƒ World Bank (only if project

Financing provided during development of project
Development Loan can not secure borrowing at
to a sponsor with insufficient resources.
reasonable rates from any
other sources)

ƒ Vendor
Debt…
Sub Category Function Source

Export-Import bank lends to a financial intermediary

Intermediary Loan (commercial bank), which in turns lends to the Export Credit Agency
project.

Sophisticated investors
including insurance
Private Placement Direct sale of long-term debt / equity
companies, pension funds,
trading companies

Issued in amounts averaging $100m without prior

registration or approval by any particular government.
Terms usually range from 10 - 15 years. Loans may
be made in any currency, fewer covenant than
syndicated bank loans, and accessible through a
Eurobond Capital Markets
large and liquid market. However, a credit rating for
the project entity is required which could be both
costly and time-consuming to obtain. Also, bond
issues tend not to allow changes to the underlying
project.
 Eng. Emmanuel G. Michael
Consultant on Renewable Energy and Climate Change
UNIDO, Dar Es salaam, Tanzania
+255 713 607766
[email protected]