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METHODOLOGY
for Conducting Energy Audits on
Small Hydroelectric Power Plants
(SHPPs)
Ad Hoc Expert Facility
under the INOGATE project
“Support to Energy Market Integration and Sustainable Energy
in the NIS” (SEMISE)
December 2011
The content of this report is the sole responsibility of the Contractor and can in no way
be taken to reflect the views of the European Union.
Author:
Larry Good - Key Expert for Sustainable Energy
Small HPP Energy Audit Methodology ii
Table of Contents
EXECUTIVE SUMMARY ......................................................................................................... 1
INTRODUCTION ...................................................................................................................... 2
Assessing Condition of Technical & Commercial Accounting ................................................... 2
Preparation of Energy Audit Results .......................................................................................... 3
TEN STEPS - OVERVIEW ...................................................................................................... 4
INPUTS ..................................................................................................................................... 6
TECHNICAL INPUTS ................................................................................................................. 6
Analysis of Equipment, Conditions & Operating Mode of SHPP................................................ 6
FINANCIAL INPUTS................................................................................................................... 7
STEP 1 BASELINE.............................................................................................................. 8
BASELINE TECHNICAL ............................................................................................................ 8
Energy Efficiency Rates ............................................................................................................ 8
Determining Energy Efficiency ............................................................................................... 10
Energy Balance ....................................................................................................................... 10
BASELINE FINANCIAL ........................................................................................................... 10
Step 1a. Old Re-investment Table ........................................................................................... 11
Step 1b. Annual Income.......................................................................................................... 12
Step 1c. Annual Operations & Maintenance (O&M) Costs ...................................................... 12
Step 1d. Other Annual Costs ................................................................................................... 12
STEP 2 NEW CONDITIONS ............................................................................................ 13
NEW CONDITIONS, TECHNICAL ........................................................................................... 13
Development of Energy Conservation Measures (ECMs) ......................................................... 13
NEW CONDITIONS, FINANCIAL ............................................................................................ 13
Step 2a. Initial Investment ...................................................................................................... 14
Step 2b. Life Cycle Re-investments ........................................................................................ 14
Step 2c. Annual Income .......................................................................................................... 15
Small HPP Energy Audit Methodology iii
Step 2d. Annual Operations & Maintenance (O&M) Costs ...................................................... 15
Step 2e. Other Annual Costs ................................................................................................... 15
STEP 3 DIFFERENCES: SAVINGS AND BENEFITS .................................................. 16
TECHNICAL – Increased electricity production and reduced losses ............................................ 16
FINANCIAL - Difference between new and old in ...................................................................... 16
Step 3a. Life Cycle Investments .............................................................................................. 16
Step 3b. Annual Savings ......................................................................................................... 17
STEP 4 DISCOUNT RATE ............................................................................................... 17
STEP 5 ANALISYS PERIOD ............................................................................................ 18
STEP 6 RESIDUAL VALUE.............................................................................................. 18
STEP 7 PRESENT VALUE (PV) OF BENEFITS ............................................................ 19
STEP 8 PRESENT VALUE (PV) OF INVESTMENT ...................................................... 20
STEP 9 ABSOLUTE FEASIBILITY: NPV ....................................................................... 21
STEP 10 RELATIVE FEASIBILITY: IRR & SIR ........................................................... 21
SOME ASPECTS of FINANCING REHABILITATION of SMALL HPPs ............................... 24
APPENDIX 1. (Data Collection Form, below)......................................................................... 26
APPENDIX 2. (ECMs, below) ................................................................................................ 26
Small HPP Energy Audit Methodology 1
EXECUTIVE SUMMARY
This document is a best practice methodology for conducting energy audits on small
hydropower plants (SHPPs). The emphasis in this methodology is on correct analysis.
Hydropower plant engineers already know how to take measurements of their operations
with appropriate instruments, so explaining data collection in detail is not necessary here.
What is important is a) which data to collect, and b) correct analysis of the data for
profitable projects. The latter point is critical. Therefore, this methodology dwells on
processing data with a 10-step life cycle cost (LCC) analysis to produce feasibility
indicators that will attract investment.
After explaining the 10-step analysis in theory, the methodology offers examples with
tools and instructions. Four feasible energy conservation measures (ECMs) are analyzed
in detail with working spreadsheets:
• Replacement of existing generating capacity
• New technology to exploit excess water power
• Controls upgrade
• Water pump replacement
The spreadsheets are unlocked. Readers may use them to analyze their own ECMs by
editing input or formulas.
More opportunities than these sample ECMs are possible, and the same methodology may
determine their feasibility. “Feasible” means a project will make more money than it
costs during its economic life.
The methodology also contains a short chapter on financing SHPP EE/RES projects.
Small HPP Energy Audit Methodology 2
INTRODUCTION
This Methodology begins with established, universal, energy auditing practice. The
authors applied it to actual energy audits they conducted at three small hydroelectric
power plants (HPPs) in Ukraine and adjusted the methodology to fit unique conditions
encountered in the HPPs. An energy audit assesses all aspects of a small HPP connected
with electricity production, using water as a renewable energy source.
The result of any energy audit is a set of recommendations, either for reducing energy
related costs or for increasing energy production. In either case, plant efficiency
improves. The audit report defines the opportunities to improve operation and quantifies
their technical and financial feasibility.
To achieve the result of an energy audit at an HPP, the auditors determine the plant’s
actual, meaningful indicators, most importantly its energy efficiency. Indicators are
compared against normative values (benchmarks) to help establish efficient utilization of
water flow. Benchmarks are a tool to identify opportunities and develop measures to
improve plant energy efficiency. The audit also determines the HPP’s specifications, its
energy balance and itemized costs to help achieve improvements.
Audits offer technical suggestions aimed at improving the effectiveness of using water
flowing through the HPP. Improvements require teamwork among well qualified
engineers, energy audit experts, operational personnel and other specialists at the client
site.
As a rule, energy auditors’ proposals are advisory in nature. Therefore, there is always
the risk that their work will remain as only a paper study since implementation of
recommended measures depends on the client plant’s management.
Assessing Condition of Technical & Commercial Accounting
In the beginning, the energy auditor should conduct the following checks and surveys
during initial meetings with the client.
• Instrument characteristics
o Availability
o Type
o Class of accuracy
Small HPP Energy Audit Methodology 3
• Instrument purposes: Measurment of
o Head
o Water flow
o Generator capacity
o Energy consumption
o Internal load
o Electricity prodution
• Compliance of HPP energy accounting system with requirements of technical
regulations
• Condition of HPP’s reporting documents
• Control characteristics of gensets and HPP, their approval by test data, adequate
adjustment of normalizing coefficients to assess the impact of different factors
over time. Check existence and sufficiency of allowed water and energy
consumption for HPP’s own needs (internal load).
• Water flow accounting: To analyze the system accounting for water flow, check
existence of metrological certification or accuracy of test measurments by flow
meters. Without flow meters, analyze the possibility of indirect measurement of
water flow through turbines according to their capacity.
• Missing information: Conduct a survey, with either stationary or portable
instruments, to fill in missing information or if doubts exist about reliability of the
information provided.
Preparation of Energy Audit Results
Upon completion of energy audit the energy auditor prepares a report containing:
1. Executive summary (1 page with most important results)
2. Background and description of existing situation
3. Recommendations quantifying the technical improvement and life cycle feasibility
of each improvement, known as energy conservation measure (ECM)
4. Appendices
a. Life cycle cost (LCC) analysis of each ECM
b. Collected data of interest (nameplate data, records, etc.)
Small HPP Energy Audit Methodology 4
TEN STEPS - OVERVIEW
The goal of an HPP energy audit is to find ways to increase income by producing and
selling more electricity. In 10 steps with a computer spreadsheet, one can find the
economic feasibility of measures to accomplish this. They are called “energy
conservation measures” (ECMs). The 10 step procedure is a life cycle cost (LCC)
analysis. The 10-step calculating tool produces exactly the same results as the traditional
method of finding LCC in tables.
Life cycle cost analysis considers the fact that interest (the cost of capital) diminishes, or
“discounts” the value of increased income more each year. This explains why high
interest rates limit the scope of projects. For illustration, the 10 steps are applied here to a
hypothetical HPP genset energy conservation measure (ECM).
The 10 Steps:
1. Determine old costs (existing baseline conditions).
2. Determine new costs (implementation and beyond).
3. Calculate differences.
4. Choose discount rate.
5. Choose analysis period.
6. Estimate residual value of equipment at end of service life.
7. Calculate present value of annual savings.
8. Calculate present value of investments.
9. Calculate absolute feasibility of project.
10. Calculate relative feasibility of project.
A spreadsheet arranged like a standard financial table shows the analysis period and the
effect of time on future savings and investments.
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Present Value Savings (or Increased Income)
Total
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Present Value Investments
Total
Small HPP Energy Audit Methodology 5
The spreadsheet calculates two intermediate values:
• The total (Σ) of the present value of all benefits (called “savings”)
• The total (Σ) of the present value of all investments
For output, the spreadsheet will calculate these results:
NPV – Subtraction of total savings from investments.
Net present value (NPV) is a project's absolute worth.
SIR – Division of total savings by investments.
Savings-to-investment ratio (SIR) is a project's relative worth.
IRR – Use of an iterative algorithm.
Internal rate of return (IRR) is the interest a project will earn.
These are economic indicators of feasibility that investors understand. The analysis
methodology works as follows.
Small HPP Energy Audit Methodology 6
INPUTS
The energy auditor collects data for analysis from records and measurements. (See data
collection forms in Appendix I.) This data is the input to the analysis. Input is organized
by technical and financial categories.
TECHNICAL INPUTS
Analysis of Equipment, Conditions & Operating Mode of SHPP
Inventory list should be prepared for the power plant and the following information
should be collected about the equipment:
• The basic technical data on the major and minor equipment (turbines,
hydroelectric generators, power transformers etc.)
• Water supply schematic and outlet construction
• Analysis of the major water users in the head water and tail water, and also for
production needs of HPPs
• Analysis of HPP’s internal electricity consumption and plan for power supply
• Schematic of primary connections
While analyzing equipment condition, the following issues must be clarified:
• Technical condition of water supplying facilities, hydro-turbine waterways and
outlet constructions for minimizing pressure losses
• Frequency of genset overhauls, existance of measured assessments of production
quality, assessment of the flow portions of hydraulic turbines
• Existance of turbine control and condition of head regulation
• Limits on smallest and largest power generating units and technical condition of
power control devices
• Technical condition of auxillary equipment
Daily schedules of a load curve for an HPP in different seasons and the regulatory regime
of the active and reactive power should be analyzed. The existance and condition of an
automatic device for regulation of active and reactive power, as well as HPP compliance
with primary and secondary frequency regulation must be checked. Also, the average
daily number of starts and stops should be determined.
Small HPP Energy Audit Methodology 7
It is necessary to analyze the water-energy regimes; seasonal, weekly and daily variations
in head water and tail water levels; HPP head, as well as the burden of regulations on the
economy of hydraulic turbines.
FINANCIAL INPUTS
• Electricity sale tariff
• Sales records from recent years
• Operation & maintence costs (O&M), including labor, parts and outside services,
from recent years
• Other costs, e.g., penalties, incentives, legal costs
• Capital reinvestment costs and schedule
• Prices of proposed new equipment, O&M costs and other costs
• Cost of capital (discount rate)
• Economic life of new equipment
• Estimated salvage value at end of economic life
This is the end of the input. Now let’s look at conducting the 10-step analysis.
Small HPP Energy Audit Methodology 8
STEP 1 BASELINE
Begin with good mathmatical definition of the existing situation.
BASELINE TECHNICAL
Energy Efficiency Rates
A turbine genset (Fig. 1) is the primary object of analysis in an HPP energy audit.
Fig. 1. – Process diagram
1- spiral chamber, 2- vane, 3- impeller, 4- draught tube, 5- generator
A hydraulic turbine converts the energy of water flowing under pressure into mechanical
energy of shaft rotation.
The energy source for an HPP is flowing water, used by turbines, under pressure. The
capacity of water flow supplied to turbines is defined as the product of flow times head
(pressure).
N = 9.81 x H x Q (1)
Small HPP Energy Audit Methodology 9
where
N = capacity of water flow (kW)
H = head at HPP, or ∆ elevation between head water and tail water, (m)
Q = water flow through turbines (m3/s)
Water flow through the turbine is calculated by the formula
Q = S х V (2)
where
S = cross sectional area of water inlet (m2)
= Stotal - Sgrille (3)
where Stotal = A х B
Sgrille = δ х L х n
А = depth of water inlet (m)
В = width of water inlet (m)
δ = thickness of trash restraining grille bars (m)
L = length of grille bars (m)
n = quantity of grille bars (m)
V = velocity of water at inlet measured by instruments (m/s)
From this it follows that energy into a HPP depends on head and water flow.
Efficiency of water usage at any point in time is the efficiency of the genset, determined
by the ratio of electric power P at the generator buses to input power of the water flow N.
Ƞgs = output / input = Р / N (4)
where
Ƞgs = genset efficiency (%)
Р = electric power (output in kW)
= х U х I х cos φ (5)
where
U = average line voltage on the buses (kV)
I = average strength of current on the phases (А)
cos φ = power factor
N = water power (input in kW)
Small HPP Energy Audit Methodology 10
For the energy audit. calculate daily average efficiency.
Determining Energy Efficiency
Actual values of water flow and efficiency at hydroelectric power plants are measured by
instruments. The auditor must identify correct measurement intervals, required
instruments and their connection, observation points and responsible personnel. When an
HPP feeds the grid, measurement intervals are 20-30 minutes. Record the times of HPP
load change, and record generator power before and after each change. Large volumes of
measurements require automated data collection.
Formula (4) is used to calculate the actual values of HPP efficiency. In this case, the
efficiency should be determined for each genset, and for the HPP in general, considering
electricity produced. To find input in the absence of flow meters, water flow, Q, is
calculated by flow capacity characteristics of the measured values of P and N. Output is
the value of electric power, equal to the sum of the measured values at the buses of all
generators.
Comparison of actual and regulatory values of energy efficiency should be made for
equal periods of time and for the same modes of HPPs.
Energy Balance
According to the results of instrument measurements made for the energy audits, an
energy balance should be made for the HPP in general. Energy input is water flow and
head. Energy output is produced electric power. Between input and output are losses.
Consider the following losses:
• Water supply facility losses (canals, pipes, penstock, trash screens)
• Hydropower loss in optimum mode
• Modal loss caused by deviation of the actual regime from optimal
• Transformer losses
• Internal consumption for own needs
BASELINE FINANCIAL
Financial baseline definition includes
• Annual sales and costs:
Small HPP Energy Audit Methodology 11
o Income from energy sales
o Operation & maintenance (O&M) costs
o Other costs
• Non-annual costs: Schedule of predicted capital re-investments
Step 1a. Old Re-investment Table
Old equipment naturally needs periodic re-investment to keep it going. The best source of
information for periodic re-investment costs on old equipment comes from maintenance
records. By looking at the past, we can get a picture of the future re-investments
necessary to continue operating the existing equipment at its current level of performance.
In this example the pattern is every four years. It does not matter how long the analysis
period will be (see Step 5). We want to establish a pattern, independent of analysis period.
Small example:
Old re-investment costs = 50 000 UAH every 4 years (from maintenance records)
Last replacement was two years ago, so the next replacement should be in year 2.
This number goes into "Old" column of capital re-investment table in 4 year
intervals.
Old Schedule
Year (UAH) 0 0
1 0
2 50 000
3 0
4 0
5 0
6 50 000
7 0
8 0
9 0
10 50 000
11 0
12 0
13 0
14 50 000
15 0
16 0
17 0
18 50 000
19 0
Investments are considered to be made at the end of each year. That is why there is no
20th year for re-investment. Twenty years of investments are counted from the end of
Small HPP Energy Audit Methodology 12
year 0 to the end of year 19. At the end of the last year of analysis, the project is finished.
Further investment requires a new project with new analysis.
Step 1b. Annual Income
Income numbers come from actual sales receipts. This information is obtained as part of
the baseline in an energy audit. Without monetary documentation, the auditor can look
for meter data and multiply by the known tariff.
Old annual income = old annual energy × energy tariff
Example:
Old annual income = 177,000 UAH/yr (determined by energy audit)
Step 1c. Annual Operations & Maintenance (O&M) Costs
O&M costs should come from actual records of maintenance. Often, this data is lost, and
the auditor is forced to estimate. The situation concerning actual O&M costs is unique in
each ECM. In this example, assume poor maintenance at low cost, so O&M = 2,500
UAH/yr.
Step 1d. Other Annual Costs
Sometimes energy projects affect non-energy costs.
Example:
- An HPP does not comply with water level regulations.
- The owner pays penalties.
- The ECM would provide sensors, warnings and controls to avoid non-
compliance.
- Penalties would stop.
Such an expense does not improve energy production, but elimination of the expense
would be the direct result of an ECM. The penalty should be included in the analysis as a
cost of operating the old equipment.
Small HPP Energy Audit Methodology 13
STEP 2 NEW CONDITIONS
NEW CONDITIONS, TECHNICAL
Development of Energy Conservation Measures (ECMs)
If equipment efficiency is above benchmark values, there is less need to develop energy
conservation measures for this equipment. Time would be better spent looking for more
profitable opportunities. However, if equipment efficiency is below benchmarks,
opportunities here should receive high priority. Among possible reasons for low
efficiency may be
• Poor original design
• Deterioration of running parts
• Deviation of performance mode from optimal
• Increased pressure loss in trash holding grids or water supply channel
• Increased level of tail water
• Poor distribution of load between gensets
• Increased consumption of electricity for own needs (internal load).
Perform specific tests to confirm the above. Note results in conclusion.
Poor HPP operation necessitates estimation of its losses and exploration of ways to
improve within the imposed grid requirements. After identifying the causes of reduced
efficiency, suggestions for their elimination should be developed, including specific
technical and organizational measures with assessment of their technical and economic
feasibility.
NEW CONDITIONS, FINANCIAL
Project costs consist of
a) Initial investment
a) Life cycle re-investments (periodic capital investments)
b) Annual income from sales
c) Annual operations & maintenance (O&M) costs
d) Other annual costs
Periodic re-investments, like annual maintenance, prevent deterioration of performance.
Small HPP Energy Audit Methodology 14
Step 2a. Initial Investment
Initial investment is more than just the contractor's basic installed cost of equipment. It
includes all real costs to the project host, e.g., engineering, profit, contingency, taxes, etc.
The analyst should uncover all real initial costs and include them. For convenience, add
costs as a percent of the basic project cost.
Example:
Basic project cost = 78 000 UAH (from energy audit)
Initial investment = basic project cost + engineering + profit + contingency + taxes
= basic project cost × (1 + 0.1 + 0.2 + 0.1 + 0.2)
= 78 000 UAH × 1.6
= 124 800 UAH
This number goes into year 0 of the "New" column in the investment table.
Step 2b. Life Cycle Re-investments
Re-investments for new equipment are treated the same as old investments. The best
source of information for periodic re-investment costs on new equipment is from
manufacturers' recommendations. Without them, make an assumumption, of the percent
of the initial investment every 5 years.
Example:
5-yr replacement costs = 25% of initial investment (manufacturer's recommendation)
= 0.25 × 124 800 UAH
= 31 200 UAH
This number goes into the "New" column of the investment table every 5 years.
Small HPP Energy Audit Methodology 15
New Schedule
Year (UAH)
0 124 800
1 0
2 0
3 0
4 0
5 31 200
6 0
7 0
8 0
9 0
10 31 200
11 0
12 0
13 0
14 0
15 31 200
16 0
17 0
18 0
19 0
Step 2c. Annual Income
The analyst estimates annual income generated from new equipment using the best
available information from manufacturers and the most realistic operating assumptions.
New annual income = new annual energy production × sales tariff
Example:
New annual energy production = 132,000 UAH/yr (audit calculation)
Step 2d. Annual Operations & Maintenance (O&M) Costs
The best source of future maintenance costs is from manufacturers' recommendations.
Operating costs must be estimated realistically.
Example:
New O&M = 5 000 UAH/yr (per manufacturer)
Step 2e. Other Annual Costs
List other annual new costs that will be improved by the project, such as improved
productivity or reduced penalties.
Small HPP Energy Audit Methodology 16
STEP 3 DIFFERENCES: SAVINGS AND BENEFITS
TECHNICAL – Increased electricity production and reduced losses
FINANCIAL - Difference between new and old in
a) Life cycle investments
b) Net annual sales
Step 3a. Life Cycle Investments
Life cycle investments consist of capital required in year zero plus future re-investment
costs separate from annual O&M. They comprise only non-annual costs.
The table below combines old and new costs, then subtracts old from new to find net
amounts for all years. For each year of life cycle investments
net = new – old
Net Investment Schedule (UAH)
Year New Old Net
0 124 800 0 124 800
1 0 0 0
2 0 50 000 (50 000)
3 0 0 0
4 0 0 0
5 31 200 0 31 200
6 0 50 000 (50 000)
7 0 0 0
8 0 0 0
9 0 0 0
10 31 200 50 000 (18 800)
11 0 0 0
12 0 0 0
13 0 0 0
14 0 50 000 (50 000)
15 31 200 0 31 200
16 0 0 0
17 0 0 0
18 0 50 000 (50 000)
19 0 0 0
Small HPP Energy Audit Methodology 17
Step 3b. Annual Savings
"Annual benefit" is a consistent number that you can depend on every year. It consists of
all steady new income produced by the project, both from energy and elsewhere. The
most common non-energy savings are in O&M. Caution: Factors in annual savings may
be negative. An example would be rigorous new maintenance to replace lax old
maintenance.
All factors must pass reality checks.
Annual cost benefits = (new - old) energy sales
+ (old – new) O&M costs
+ (old - new) other costs
Example:
Annual cost befefits = (171 000 UAH - 132 000 UAH)
+ ( 5 000 UAH - 2 500 UAH)
+ ( 0 UAH - 0 UAH)
= 41 500 UAH
This number becomes input to the LCC analysis as “annual savings” (or “revenue
increase”).
Annual net revenue increase 41 500 UAH/yr
Discount rate
Analysis period yr
Residual value UAH
STEP 4 DISCOUNT RATE
The discount rate for an investment depends on the type of financing, equity or loan. In
the case of pure equity financing, the discount rate equals the return on the best possible
interest rate from any other project. In the case of a loan, the discount rate equals the
lender's interest rate. If there is a mix of equity and loan, then the project's discount rate is
the weighted average of these two separate rates.
For this example, choose a discount rate r = 12% (lender interest rate)
This number goes into the input cell for the discount rate.
Small HPP Energy Audit Methodology 18
Annual net revenue increase 41 500 UAH/yr
Discount rate 12%
Analysis period yr
Residual value UAH
STEP 5 ANALISYS PERIOD
Any number of years up to 20 is generally acceptable for a project's economic life. The
investor will ask the question: How long are we confident that our organization can
support the project and reap its benefits? In an unstable economic situation with high
interest rates, only a short analysis period, e.g., 10 years, should be used. In this case
savings and expenses beyond 10 years become trivial due to heavy discounting. Longer
analysis periods, e.g., 20 years, are for low interest rates. They show greater return in the
outyears.
How can we include equipment with different service lives in the same analysis? If the
service life of equipment is shorter than the analysis period, we include periodic
replacement or overhaul in the investment schedule. On the other hand, if the service life
of equipment is longer than the analysis period, then we claim a higher residual value
(next step) to reflect the market value before total depreciation. This allows technologies
with different life spans to be compared on an equal basis in any time period.
In this example, choose analysis period T = 15 years.This number goes into the input cell
for analysis period.
Annual net revenue increase 41 500 UAH/yr
Discount rate 12%
Analysis period 15 Yr
Residual value UAH
STEP 6 RESIDUAL VALUE
Residual value at the end of equipment service life may be 5% or 10% of the purchase
price of any item that still has market value. Ask yourself the question, how much would
anybody really pay for my used equipment after finishing its predicted life? If equipment
has recently undergone overhaul, it may have a market value of more than 10%. This may
be true of any machine maintained in good working condition.
Small HPP Energy Audit Methodology 19
If a depreciation formula is applied for accounting purposes, residual value may be
different from market value. The choice belongs to the party wanting the analysis.
Residual value acts as a credit to the project in the final year.
Let's say that the residual value = 10% of purchase price of our HPP genset example.
Example:
Residual value = 16 000 UAH
This number goes into the input cell for residual value.
Annual net revenue increase 41 500 UAH/yr
Discount rate 12%
Analysis period 15 Yr
Residual value 16 000 UAH
STEP 7 PRESENT VALUE (PV) OF BENEFITS
The present value of annual benefits (here called “savings”) in a given year is the amount
of the savings in that year divided by (1+ discount rate) to the power of the year when the
savings occur. It reduces the real savings every year. The total PV of project savings
during the analysis period is the sum of all annual PVs.
Let:
PVAS = total present value of all annual savings
T = total number of the years in the analysis
ASt = Annual savings in the year t
This calculation shows that for each year:
PV of savings = year’s savings divided by (1+ discount rate)
raised to the power of the year when savings occur
A spreadsheet calculates the value of life cycle project savings.
151522111 )1(
1
)1(
1
)1(
1
)1(
1
rAS
rAS
rAS
rASAS
T
tttPV
+∗++
+∗+
+∗=
+
∗= ∑=
K
Small HPP Energy Audit Methodology 20
Example:
Revenue increase (UAH/yr) Year 0 1 2 3 4 . . . 13 14 15
Net ann. increases (UAH) 0 41 500 41 500 41 500 41 500 . . . 41 500 41 500 41 500
PV annual increases (UAH) 0 37 054 33 084 29 539 26 374 . . . 9 511 8 492 7 582
Σ PV ann. increases (UAH) 282 651
For T = 15 years, PVAS = 282,651 UAH
STEP 8 PRESENT VALUE (PV) OF INVESTMENT
In the same manner as with savings, let:
PVI = total present value of all investments
T = total number of the years in the analysis
It = investment in the year t
Res. Val. = residual value
15141411000 )1(
Res.Val.
)1(
1
)1(
1
)1(
1
)1(
1
rrI
rI
rI
rII
T
tttPV
++
+∗++
+∗+
+∗=
+
∗= ∑=
K
This calculation shows that for each year:
PV of investment = year’s investment divided by (1+ discount rate)
raised to the power of the year investment occurs
The total PV of investments is the sum of all annual PVs. Although there is no investment
in the final year of economic life, there may be decommissioning costs or cleanup costs.
These have the effect of reducing the residual value of the equipment, which is treated
like a negative investment.
Example:
Investments (UAH) Year 0 1 2 3 4 . . . 13 14 Residual
Net cap.investments (UAH) 124 800 0 -50 000 0 0 . . . 0 -50 000 -16 000
PV cap. investments (UAH) 124 800 0 -39 860 0 0 . . . 0 -10 231 -2 923
Σ PV cap. investments (UAH) 58 105
For T = 15 years, PVI = 58,105 UAH
Small HPP Energy Audit Methodology 21
STEP 9 ABSOLUTE FEASIBILITY: NPV
This step determines the absolute monetary value of a project, i.e., its net present value
(NPV). NPV answers the question, “How much is a project worth?” The NPV of a project
is its life cycle net savings, or how much a project will earn in its lifetime. NPV is a value
that considers the cost of capital.
Profit NPV > 0, project earns money (feasible).
Break even NPV = 0, project breaks even.
Loss NPV < 0, project loses money (unfeasible)
NPV = present value of all savings - present value of all investments
= Σ PVAS - Σ PVI
Example:
NPV = 282 651 UAH - 58 105 UAH
= 224 546 UAH
The value of the project is 224 546 UAH. The project will raise the value of the company
by this amount. NPV gives investors a method to evaluate companies or projects.
STEP 10 RELATIVE FEASIBILITY: IRR & SIR
This step determines the relative monetary values of a project, i.e., savings-to-investment
ratio (SIR) and internal rate of return (IRR).
Step 10a. Calculate savings-to-investment ratio (SIR)
SIR answers the question, how much more will a project save than it costs? An SIR is the
same as a benefit/cost ratio.
Profit SIR > 1.0, project earns money (feasible)
Break even SIR = 1.0, project breaks even
Loss SIR < 1.0, project loses money (unfeasible)
SIR = present value of all savings / present value of all investments
= Σ PV AS / Σ PVI
Small HPP Energy Audit Methodology 22
Example:
SIR = 282 651 UAH / 58 105 UAH
= 4.9
This means savings are almost five times as great as the investments required to achieve
the savings (or increased income). The reason that the project in this example is so
immensely profitable is that future re-investments to keep the old equipment in service
would be very expensive. Recall that the net future investments in Step 3a were mostly
very negative. They acted as a credit to investment in the economic analysis. In other
words, the life cycle cost of the new system is much less than that of the old. Not
including information about old and new future investments would have overlooked a big
advantage in the analysis.
A more modest project than this example may have an SIR of 1.5, which means lifetime
savings (or increased income) are 50% greater than investments, i.e., one and a half times
as great as investments.
Step 10b. Calculate internal rate of return (IRR)
IRR is a hypothetical discount rate that causes the SIR to be 1.0, or the NPV to be 0. The
IRR requires an iterative calculation, easy for a computer.
Profit IRR > discount rate, project earns money (feasible).
Break even IRR = discount rate, project breaks even.
Loss IRR < discount rate, project loses money (unfeasible)
A high IRR earns more profit per investment dollar. IRR is a major decision making tool
for lenders, usually the first question they ask. Investors may each arbitrarily set their own
minimum acceptable IRR, called a "hurdle rate."
In our HPP genset example, the computer calculated an IRR of 42% from the given input.
42% is a very healthy return.
Simple Payback
Simple payback (SPB) is not a feasibility indicator or a life cycle cost indicator. It does
not show if a project is feasible or not. Expressed in years, SPB is simply the initial
Small HPP Energy Audit Methodology 23
investment divided by the annual savings. It does not discount its input or consider future
re-investment costs.
SPB is useful for projects with very quick return. If a project can pay back in a year, for
example, there is no need to calculate discounted future values. For longer paybacks,
however, SPB becomes inaccurate because it only considers first cost and fixed annual
savings.
Furthermore, SPB does not show how much investment is too much. LCC indicators tell
you exactly at what point you start to lose money.
In this HPP genset example, SPB = 3.0 yr
If a company had an arbitrary payback limit of two years, let's say, it would have rejected
the very profitable project in this example with an IRR of 42%.
Small HPP Energy Audit Methodology 24
SOME ASPECTS of FINANCING REHABILITATION of SMALL HPPs
Reconstruction of small hydropower plants, like most projects in energy and
infrastructure, requires significant investment. Given that infrastructure projects have
long life cycles, they create perfect opportunities to attract bank financing.
A project developer may be interested in obtaining debt financing for the following
reasons:
1) To increase the scale of business: With limited equity, debt financing allows a
developer to increase the size of the business and increase business efficiency
using economy of scale.
2) To improve return on equity investment: As long as the debt interest rate is lower
than a project’s IRR, debt financing would provide financial leverage that leads to
increase of equity return. For example, if HPP reconstruction itself provides an
IRR of 18% and debt funding is attracted at 10%, the IRR of equity would be 25-
30%.
3) To obtain tax deductions: Debt financing makes bank interest tax-deductible,
which dereases taxable profit. This in turn decreases income tax.
Nevertheless, debt financing also has some disadvantages for developers which should be
considered. Debt financing
1) Increases risk: In the case where a business earns less income than expected, or
even faces bankruptcy, lenders need to be paid first, regardless of whether the
developer is earning or losing money.
2) Reporting obligation (limitation on borrower): Borrowers must report to lenders
on the status of the collateral. Often, lenders impose limitations on cash
distribution or dividends and require some amount of cash to remain in the
business.
A significant number of energy project developers try to attract debt financing. There are
two approaches to debt financing: a) project financing, or b) corporate (on-balance)
financing.
Project financing is debt funding for particular infrastructure or industrial projects,
typically, provided for a long term. In this case, collateral is not the developer’s assets
Small HPP Energy Audit Methodology 25
but rather equipment or construction facilities acquired by the lender’s and equity
investor’s money. The source of repayment is cash flow provided by the project’s future
operations. Typically, an entity created for project development maintains responsibility
for debt repayment, and the debt cannot be transferred to a project owner’s other assets.
Possible lenders for project financing schemes are
1) Export banks that provide loans for equipment purchased in the country of a
bank’s origin.
2) International financial institutions (IFI), such as EBRD, European Investment
Bank, KfW Bank.
3) Certain local banks.
4) Syndication of several banks, possibly a combination of export banks and an IFI.
In most cases, the lender’s key requirements are as follows:
1) Experienced developer’s team
2) Business conditions
a. Mature project development status (prepared feasibility study, regulatory
approvals)
b. Sound economics of the business, which generates enough cash to repay
the loan even in case risks materialize. (Typically, lenders require
available cash to be 1.4-2.0 over debt service).
c. Guarantee of future electricity sales.
d. Regulatory background.
3) Reliable feasibility study proving source of energy (hydrological study), contracts
with reliable construction company, equipment producers, engineers
4) Detailed legal analysis of the lending entity, foreign exchange risk analysis
Very often to obtain project financing, a project should be reasonably large, greater than 5
million euro. Projects can be grouped together to enlarge their total volume. At the same
time, depending on their current policies, international financial institutions establish
special loan programs for small projects in renewable energy and in energy efficiency to
support their promotion.
Typical terms for long-term project financing are as follows:
1) Debt / equity ratio (portion of debt in total investment) – 40-85%
Small HPP Energy Audit Methodology 26
2) Term of repayment – 5-15 years
3) All-inclusive interest rate – 7-12% in Euro (rates are regulated under OECD rules)
Corporate financing is traditional debt financing where the source of repayment and
guarantee is a sponsor’s holding company, backed by its assets. Banks usually require the
project to be feasible by itself, but the key decision factor is the sponsor’s company
balance sheet.
The following bank requirements would be typical for corporate financing:
1) Reasonable collateral provided as a guarantee for the debt. It can be either
company assets or cash deposit.
2) Strong business strategy of the sponsor’s company, which would guarantee debt
repayment and provide information about the company’s performance forecast.
3) Information about the project, also required but less important than the preceding
points.
Corporate financing conditions, in comparison to project finance, are as follows.
1) Debt portion in the total investment of the project can be up to 100%, depending
on the sponsor’s company balance sheet and collateral provided.
2) Term of repayment is typically shorter than for project financing – up to 5 years,
depending on collateral provided.
A developer’s decision about attracting debt financing for a rehabilitation project depends
on a number of factors such as:
a) Available funds
b) Investment opportunities
c) Ownership policy
d) Other
Nevertheless, since the lending process and negotiations with banks take a long time, the
developer should take a decision regarding debt financing at the early stages of
development (no later than the engineering stage) in order not to delay financial closing.
APPENDIX 1. (Data Collection Form, below)
APPENDIX 2. (ECMs, below)
Содержание Contents
Выработка электроэнергии Electricity production
Support to Energy Market Integration and Sustainable Energy in the NIS (SEMISE)
Office 1-B, B. Khmeinitskogo Str. 30/10, Kiev 01030, Ukraine, Tel: +380 44 2726812/14, Fax: +380 44 272 6815, www.inogate.org
NOTES
Corporation Information
Data
Информация о компании
Данные
ЗАМЕТКИ
HPP DCF
Фамилия, имя, отчество /
First and Last name
Должность/Краткое описание
должности /
description/ Position / short
Телефон /
Telephone
Электронная почта /
Подготовлено / Prepared by:
Проект / Project "SEMISE"
Анкета для сбора данных / Data collection form
Дата / Date:
Примечание: Данные, предоставленные в электронном формате, предпочтилельнее бумажного формата /
Note: Data in electronic form are preferable
Данные о компании / Company
Контактное лицо / Contact person(s)
Addıess:
Адрес:
Телефон / Telephone:
Факс / Fax:
Интернет сайт / Web portal:
Prepared by: Date: Page: 1
HPP DCF
Собственник ГЭС / HPP Owner
Год запуска ГЭС /
Year of HPP Commissioning
От какого параметра зависит работа ГЭС (вода
или потребитель) / Parametres HPP depends on
(water, consumers)
Ежедневная выработка за последние 3 года /
Average daily electricity production in 3 last
years
Тариф на продажу электроэнергии (в евро) /
Electricity sale tariff (Euro)
Краткое описание законодательства, которое
регулирует водоиспользование, потребление и
продажу электроэнергии, работу ГЭС / Short
description of legislation on water use, electricity
production and consumption and HPP operation
Особенности работы ГЭС (на энергосистему,
на локальную сеть) / Specifics of HPP operation
(electricity sale to the grid, local network)
Штрафы и / или стимулы /
Fines and/or incentives
Если ли гарантия полной продажи
электроэнергии (Краткое описание) / Is there a
guarantee of all electricity being sold?
Просьба поставить галочку в этой ячейке, если прилагаются
дополнительные таблицы с данными
Prepared by: Date: Page: 2
HPP DCF
Тип управления агрегатами (ручной или
автоматический) / Type of genset control
(automatic or manual)
Какие измерительные приборы имеются на
ГЭС? /
What measuring tools does the HPP have?
Периодичность ремонтов на ГЭС /
Interval between overhauls
Есть ли документация по ремонтам (просьба
предоставить)? / Are overhaul documents
available (please provide)?
Существуют ли чертежи ГЭС (просьба
предоставить) / Are HPP drawing available
(please provide)?
Prepared by: Date: Page: 3
HPP DCF
Тип ГЭС (плотинная, деривационная) /
HPP type (dam, diversion)
Размер и уклон деривационного канала или
трубопровода / Size and slope of diversion
channel, penstock?
Гидрология данного створа /
Hydrology of river at HPP
Отметки воды (нижный и верхний бъеф) /
Water levels (head water, tail water)
Напор на ГЭС / Head
Средний многолетний расход воды через
гидроузел ( м3/сек ) при возможности
помесячно / Average monthly flow (m3/s)
Ежегодное время работы ГЭС / загруженность
/
HPP annual operation time / workload
Prepared by: Date: Page: 4
HPP DCF
Турбины (название и тип) /
Turbines (name, type)
Производитель / Manufacture
Количество Quantity
Номера / Plate number
Установленная мощность /Rated capacity
Установленный КПД /Rated COP
Расход воды (в м3/с), минимальный и
максимальный / Flow (m3/s), max & min
Количество оборотов (об/мин) /
Rotations per minute
Способ доставки воды на турбины (дайте
детали) /Way of supplying water to the turbines
Скорость вращения турбин (об/мин) / Turbines'
rotations per minute
Наличие ремонтной документации /
Availability of overhaul documentation
Приблизительная дата последнего ремонта /
Approximate date of recent overhaul
Приблизительная стоимость капитального
ремонта / Approximate overhaul costs
Ежегодные затраты на эксплуатацию и
техническое обслуживание /
Annual operation and maintenance costs
Периодические затраты /
Periodic reinvestments
Prepared by: Date: Page: 5
HPP DCF
Генераторы (количество, название и тип) /
Generators (quantity, name and type)
Производитель, год выпуска / Manufacture,
year of production
Количество оборотов (об/мин) /
Rotations per minute
Напряжение на обмотках статора (В) /
Stator line voltage (V)
Номинальная мощность / Rated capacity
Вольтаж / частота / Voltage and frequency
Наличие ремонтной документации /
Availability of overhaul documentation
Дата последнего ремонта /
Date of most recent overhaul
Ежегодные затраты на эксплуатацию и
техническое обслуживание /
Annual operation and maintenance costs
Периодические затраты /
Periodic reinvestments
Prepared by: Date: Page: 6
HPP DCF
Трансформаторы (количество, название и
тип) /
Transformers (quantity, name and type)
Производитель, год выпуска /Manufacture, year
of production
Мощность / Capacity
Высокое напряжение / High voltage
Низкое напряжение / Low voltage
Наличие ремонтной документации /
Availability fo overhaul documentation
Дата последнего ремонта / Date of recent
overhaul
Ежегодные затраты на эксплуатацию и
техобслуживание / Annual operation and
maintenance costs
Периодические затраты на техобслуживание и
реинвестиции / Periodic costs
Prepared by: Date: Page: 7
Производство электроэнергии (12 месяцев)
Monthly Electrical Production (12 months)
2011 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Night/ ночь
(kWh)0
Day / день
(kWh)0
Peak/ пик
(kWh)0
Total/ всего
(kWh)0
Amount/Сумма
(UAH)0
Тариф
(UAH/kWh)
2010 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Night/ ночь
(kWh)0
Day /день
(kWh)0
Peak /пик
(kWh)0
Total/ всего
(kWh)0
Amount/ сумма
(UAH)0
Rate/ тариф
(UAH/kWh)
SEMISE Project
Напряжение / частоты (V - Hz):
Main service voltage level & frequency
Address:Контаке даннтные:
Primary contact
(full name)
Данные по электроэнергии
Electrical Data
Office hours:
Elektrik
Electricity
Название предприятия:
Utility name
Тарифы (UAH/kWh):
Utility rate(s)
Штрафы и стимулы для предприятия:
Utility penalties or incentives
Fax:
E-mail:
Title:
Phone:
SEMISE Project
NOTES/ Заметки
� Какие проблемы?
Concerns, known problems?
Какие у Вас идеи относительно новых возможностей?
Ideas for solutions or new opportunities?
� Какие регуляторные акты принименимы к Вашему бизнесу? Местные или
государственные?
Do any regulations apply to your business? Local or general?
� Какие стимулы применимы к Вашему бизнесу?
Do any incentives apply to your business?
� Включает ли тариф на электроэнергию тариф на спрос и платежи
по разным энергофакторам?
Does the electric tariff include demand charges and power factor charges?
Вопросы заказчику
Questions for Client
Small HPPECM Turbine Controls
Analysis by SEMISE Sustainable energy team31 May 2011
Summary TableImprovements LCC Feasibility Indicators Emissions Reductions
Additional
produc-
tion
(MWh/yr)
Net new
revenue
(1000
€/yr)
Relative
annual
revenue
increase
Net in-
vestment
(1000 €)
NPV
(1000 €)
SIR IRR
Simple
payback
(yr)
CO2
(T/yr)
NOx
(kg/yr)
SOx
(kg/yr)
63 10.5 6.4% 26.3 17.0 1.65 38.4% 2.5 31.4 138 622
(3% annual increase)
Recommendations Actions
1. Install a new control system to provide fully automatic operation of gensets.
• Features: o
Automatic compensation system o
Hydraulic start/stop system for turbines o
Control of all parameters o
Vane hydraulic open/close system o
Equipment protection
• Manufacturer: "Promenergiya" in Ternopol, Ukraine (or equivalent)
Approximate installed costs
(including 5% contingency) Price Qty. Cost
Controls 23,100 € 1 23,100 €
Installation 3,150 € 1 3,150 €
Overall 26,250 €
0
25
50
75
100
125
150
175
200
225
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Small HPP, ECM Turbine Controls
New Electricity Production
Increase
Old Production
(MWh)
31 May2011
SEMISE
(3.2% increase)
Small HPP, ECM Turbine Controls
Results
• 3.2% increase in electricity production (avoided production loss)
• 6.4% increase in revenue (less maintanance + avoided production loss)
• Using a 20.5% discount rate: o
NPV = 17.0 thousand UAH€
o IRR = 38.4%
• The project is profitable.
• The benefit from this ECM is the more productive operation caused by the new controls.
• New hydroelectric power production offsets an equal amount of electricty from thermal power plants.
Discussion Controls
The new control system
• Improves safety, reliability and efficiency of operation.
• Optimizes output with less labor input.
• Starts and stops gensets automatically.
• Controls main parameters: o
Water level o
Genset rpm o
Vane position o
Power factor compensation
• Analyzes and displays all data.
• Determines optimal production regime according to HPP characteristics.
• Has all characteristic data uploaded by manufacturer.
• Records all data and analyzes it periodically for energy management studies.
Water tax
• With less downtime, more water volume passes through turbines, allowing more electricity production.
• Water tax is based on water volume, which is calculated from electricity production.
∴ Water tax increases proportionate to increased electricity production in this ECM.
Emissions
• Emissions from hydropower are considered to be zero.
• New hydropower in grid offsets all emissions for the same amount of thermally produced power.
• Emissions factors are taken from government published averages for electric grid.
Small HPP, ECM Turbine Controls
InputTechnical
Electricity generation 2008 2009 2010 (client records)
Month (kWh) (kWh) (kWh)
Jan 137,568 169,152 149,292
Feb 148,338 208,644 116,802
Mar 144,516 219,792 229,806
Apr 217,758 216,432 215,310
May 240,342 129,204 130,920
Jun 119,208 144,378 172,590
Jul 109,794 131,490 166,488
Aug 158,910 76,008 94,392
Sep 187,158 93,102 169,338
Oct 241,884 150,318 173,400
Nov 200,352 153,696 147,684
Dec 177,294 123,300 190,938
Parameters for water tax calculation
Head, river at HPP 7.4 m (HPP design)
Turbine efficiency 84% (calc. from nameplate data)
Generator efficiency 94% (calc. from nameplate data)
Annual water volume
Formula W (m3/yr) = (E x 3600) / (9.81 (m/s
2) x h net (m) x η t x η gen (HPP engineering practice)
where W = annual HPP water volume
E = annual energy production
h = head
η t = turbine effiency
η gen = generator efficiency
Generator
Average output between rebuilds 163.5 kW (client records)
Old annual breakdown time 20 days/yr (client records)
New annual breakdown time 4 days/yr (SEMISE estimate)
Simplyfying assumption: Breakdown times are distributed evenly across all months.
Factors & constants
Gravitational acceleration 9.807 m/s2 (physics)
Seconds in an hour 3,600 s/h (universal)
Hours in a day 24 h/day (universal)
Months in a year 12 mo/yr (universal)
Emission factors for electricity
CO2 0.50 kg/kWh (Ministry of Energy)
NOx 2.20 g/kWh (Ministry of Energy)
SOx 9.90 g/kWh (Ministry of Energy)
Small HPP, ECM Turbine Controls
Financial
Electricity sale tariff 0.08418 €/kWh (green tariff)
Water tax
Tariff (R) 0.00442 € / 100 m3 (national law)
Formula Cost (€/yr) = [W (m3/yr) / 100] x R (€/m
3 ) (national law)
where W = annual HPP water volume
R = tariff
Operating costs (client)
Quantity of operators
Old 5 persons
New 4 persons
Labor base salary 300 €/mo · person or 3,600 €/yr · person (HPP)
Labor burden rate 38.52% of base salary (Ministry of wages)
O&M costs
Old 625 €/yr (client records)
New 200 €/yr (SEMISE estimate)
Other annual costs
Old 0 €/yr (client records)
New 0 €/yr (none identified)
Investments & re-investments (without VAT)
Old
Re-investment cost 580 €/unit (maintenance records)
Next year of re-investment: yr # 5 (maintenance records)
Re-investment period: every 5 yr after next year (maintenance records)
New
Control system cost 22,000 € (manufacturer)
Installation labor cost 3,000 € (manufacturer)
Re-investment 5% of initial investment (estimate)
1st year of re-investment: yr # 5 (manufacturer)
Re-investment period: every 5 yr after 1st year (manufacturer)
Contingency 5% of initial investment (SEMISE estimate)
Discount rate 20.5% (client)
Analysis period 10 yr (SEMISE determination)
Residual value 5% of initial cost (SEMISE determination)
Small HPP, ECM Turbine Controls
AnalysisStep 1. BaselineTechnical
Units derivations
Physics Units
Force force = mass x acceleration
F = ma N = (kg)(m/s2)
Mass mass = force / acceleration
m = F/a kg = (N)(s2/m)
Flow H2O vol. flow rate = H2O mass flow rate (because SG H20 = 1)
q dot = m dot m3H2O/s = t H2O/s
= 1000 kg/s
= 1000 (N)(s2/m)/s
= 1000 N · s/m
Power power = force x velocity
P = Fv W = (N)(m/s)
kW = 1000 N · m/s
Old production loss
Old annual breakdown hours
= old annual breakdown time x hours in a day
= 20 day/yr x 24 h/day
= 480 h/yr
Annual production losses
= old annual breakdown hours x capacity of one generator
= 480 h/yr x 163.5 kW
= 78,480 kWh/yr
Distribution of old production losses
= old annual production losses / months in a year
= 78,480 kWh/yr / 12 mo/yr
= 6,540 kWh/mo
Small HPP, ECM Turbine Controls
Average old electricity production
( 2008 + 2009 + 2010 ) / Qty. of = Average
Month (kWh) (kWh) (kWh) samples (kWh)
Jan ( 137,568 + 169,152 + 149,292 ) / 3 = 152,004
Feb ( 148,338 + 208,644 + 116,802 ) / 3 = 157,928
Mar ( 144,516 + 219,792 + 229,806 ) / 3 = 198,038
Apr ( 217,758 + 216,432 + 215,310 ) / 3 = 216,500
May ( 240,342 + 129,204 + 130,920 ) / 3 = 166,822
Jun ( 119,208 + 144,378 + 172,590 ) / 3 = 145,392
Jul ( 109,794 + 131,490 + 166,488 ) / 3 = 135,924
Aug ( 158,910 + 76,008 + 94,392 ) / 3 = 109,770
Sep ( 187,158 + 93,102 + 169,338 ) / 3 = 149,866
Oct ( 241,884 + 150,318 + 173,400 ) / 3 = 188,534
Nov ( 200,352 + 153,696 + 147,684 ) / 3 = 167,244
Dec ( 177,294 + 123,300 + 190,938 ) / 3 = 163,844
Annual ( 2,083,122 + 1,815,516 + 1,956,960 ) / 3 = 1,951,866
0
25
50
75
100
125
150
175
200
225
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Small HPP, ECM Turbine Controls
Old Electricity Production(MWh)
31 May2011
SEMISE
Small HPP, ECM Turbine Controls
Old annual water volume through HPP (for taxes)
Average old HPP electricity prod. = 1,951,866 kWh/yr = 1,951,866 kN · m · h/s · yr (from units calculation)
W (m3/yr) = (E x 3600) / (9.81 (m/s
2) x h net (m) x η t x η gen
annual energy prod. time constant
gravitational accel. head turbine eff. gen. eff.
1,951,866 kN · m · h 3,600 s s2
s · yr h 9.807 m 7.4 m 0.84 0.94
= kN · s2/m · yr
= t H2O/yr (from units calculation)
= m3H2O/yr (from units calculation)
Old annual avoided emissions = emission factors x old annual HPP electricity production
Old avoided CO2 emissions = 0.50 kg/kWh x 1,951,866 kWh/yr = 976 T/yr
Old avoided NOx emissions = 2.20 g/kWh x 1,951,866 kWh/yr = 4,294 kg/yr
Old avoided SOx emissions = 9.90 g/kWh x 1,951,866 kWh/yr = 19,323 kg/yr
=
=
122,624,561
122,624,561
122,624,561
Small HPP, ECM Turbine Controls
Financial
Old annual income from sale of electricity
= old annual electricity production x electricity sale tariff
= 1,951,866 kWh/yr x 0.0842 €/kWh
= 164,308 €/yr
Old water tax
Cost (€/yr) = [W (m3/yr) /100] x R (€/m
3)
old HPP water volume for taxes water tariff
100
m3 0.00442 €
yr 100 m3
= 5,420 €/yr
Old O&M cost
Labor cost per person
= labor base salary x (1 + labor burden rate)
= 3,600 €/yr · person х ( 1 + 0.3852 )
= 4,987 €/yr · person
Total old cost of labor for operation
= labor cost per person x old quantity of operators
= 4,987 €/yr · person х 5 persons
= 24,934 €/yr · person
Old maintenance cost = maintanance cost of control system = 625 €/yr (given)
Old annual total O&M cost
= operation cost + maintanance cost
= 24,934 €/yr + 625 €/yr
= 25,559 €/yr
= 122,624,561
=
Small HPP, ECM Turbine Controls
Old capital re-investments Old schedule
Year (€)
Control system re-investment 0 0
Old periodic re-investment 580 € (given) 1 0
Next re-investment due in year # 5 of project life (given) 2 0
Old re-investment period 5 yr (given) 3 0
4 0
5 580
6 0
7 0
8 0
9 0
10 580
11 0
12 0
13 0
14 0
15 580
16 0
17 0
18 0
19 0
Small HPP, ECM Turbine Controls
Step 2. New ConditionsTechnical
New production losses
New annual breakdown hours
= new annual breakdown time x hours in a day
= 4 day/yr x 24 h/day
= 96 h/yr
New annual production losses
= new annual breakdown hours x capacity of one generator
= 96 h/yr x 163.5 kW
= 15,696 kWh/yr
Distribution of new production losses
= new annual production losses / months in a year
= 15,696 kWh/yr / 12 mo/yr
= 1,308 kWh/mo
New electricity Old Old New New
production average + losses - losses = average
Month (kWh) (kWh) (kWh) (kWh)
Jan 152,004 + 6,540 - 1,308 = 157,236
Feb 157,928 + 6,540 - 1,308 = 163,160
Mar 198,038 + 6,540 - 1,308 = 203,270
Apr 216,500 + 6,540 - 1,308 = 221,732
May 166,822 + 6,540 - 1,308 = 172,054
Jun 145,392 + 6,540 - 1,308 = 150,624
Jul 135,924 + 6,540 - 1,308 = 141,156
Aug 109,770 + 6,540 - 1,308 = 115,002
Sep 149,866 + 6,540 - 1,308 = 155,098
Oct 188,534 + 6,540 - 1,308 = 193,766
Nov 167,244 + 6,540 - 1,308 = 172,476
Dec 163,844 + 6,540 - 1,308 = 169,076
Totals 1,951,866 + 78,480 - 15,696 = 2,014,650
Small HPP, ECM Turbine Controls
New annual water volume through HPP (for taxes)
W (m3/yr) = (E x 3600) / (9.81 (m/s
2) x h net (m) x η t x η gen
new ann. energy prod. time constant
gravitational accel. head turbine eff. gen. eff.
2,014,650 kN · m · h 3,600 s s2
s · yr h 9.807 m 7.4 m 84% 94%
= kN · s2/m · yr
= t H2O/yr (from units calculation)
= m3H2O/yr (from units calculation)
New annual avoided emissions = emission factors x new annual HPP electricity production
New avoided CO2 emissions = 0.50 kg/kWh x 2,014,650 kWh/yr = 1,007 T/yr
New avoided NOx emissions = 2.20 g/kWh x 2,014,650 kWh/yr = 4,432 kg/yr
New avoided SOx emissions = 9.90 g/kWh x 2,014,650 kWh/yr = 19,945 kg/yr
126,568,920
=
=
126,568,920
126,568,920
0255075
100125150175200225
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Small HPP ECM Turbine Controls
New Electricity Production(MWh)
31 May2011
SEMISE
Small HPP, ECM Turbine Controls
Financial
New annual income from electricity sale
= new annual energy production x electricity sale tariff
= 2,014,650 kWh/yr x 0.0842 €/kWh
= 169,593 €/yr
New water tax
Cost (€/yr) = [W (m3/yr) /100] x R (€/m
3)
new HPP water volume for taxes water tariff
100
m 3 0.00442 €
yr 100 m 3
= 5,594 €/yr
New O&M cost
New annual total cost of labor for operation
= labor cost per person x new quantity of operators
= 4,987 €/yr · person x 4 persons
= 19,947 €/yr
Old maintenance cost = maintanance cost of control system = 200 €/yr
(given)
Annual total O&M cost
= operation cost + maintanance cost
= 19,947 €/yr + 200 €/yr
= 20,147 €/yr
=
= 126,568,920
Small HPP, ECM Turbine Controls
New capital investments & re-investments New schedule
Year (€)
Total initial investment (year 0) = Σ (costs x (1 + 5% contingency)) 0 26,250
1 0
Controls 22,000 € x 1.05 = 23,100 € 2 0
Installation + 3,000 € x 1.05 = 3,150 € 3 0
Totals 25,000 € 26,250 € 4 0
5 1,313
New periodic re-investment 6 0
= 5% of total initial investment 7 0
= 0.05 x 26,250 € 8 0
= 1,313 € 9 0
10 1,313
1st year of new re-investment: Year # 5 (given) 11 0
New re-investment period: every 5 yr after 1st year (given) 12 0
13 0
14 0
15 1,313
16 0
17 0
18 0
19 0
Small HPP, ECM Turbine Controls
Step 3. BenefitsTechnical
Increase in HPP New Old Increase (from Steps 1 and 2)
electricity production prod. - prod. = in prod.
Month (kWh) (kWh) (kWh)
Jan 157,236 - 152,004 = 5,232
Feb 163,160 - 157,928 = 5,232
Mar 203,270 - 198,038 = 5,232
Apr 221,732 - 216,500 = 5,232
May 172,054 - 166,822 = 5,232
Jun 150,624 - 145,392 = 5,232
Jul 141,156 - 135,924 = 5,232
Aug 115,002 - 109,770 = 5,232
Sep 155,098 - 149,866 = 5,232
Oct 193,766 - 188,534 = 5,232
Nov 172,476 - 167,244 = 5,232
Dec 169,076 - 163,844 = 5,232
Totals 2,014,650 - 1,951,866 = 62,784
Relative annual increase in HPP electricity production
= production increase / old production
= 62,784 kWh/yr / 1,951,866 kWh/yr
= 3.2%
(3.2% increase)
Annual emissions reductions = new avoided emissions - old avoided emissions
CO2 reduction = 1,007 T/yr - 976 T/yr = 31 T/yr
NOx reduction = 4,432 kg/yr - 4,294 kg/yr = 138 kg/yr
SOx reduction = 19,945 kg/yr - 19,323 kg/yr = 622 kg/yr
0
25
50
75
100
125
150
175
200
225
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Small HPP ECM Turbine Controls
Increase in Electricity Production
Increase
Old Production
(MWh)31 May2011
SEMISE
(3.2% increase)
Small HPP, ECM Turbine Controls
Financial
Increase in annual income
Additional annual income from increased electricity sales Additional annual water tax
= ( new - old ) electricity sale income = ( new - old ) water tax
= 169,593 €/yr - 164,308 €/yr = 5,594 €/yr - 5,420 €/yr
= 5,285 €/yr = 174 €/yr
Annual O&M savings Other annual savings
= ( old - new ) O&M cost = ( old - new ) other costs
= 25,559 €/yr - 20,147 €/yr = 0 €/yr - 0 €/yr
= 5,412 €/yr = 0 €/yr
Net annual additional income 5,285 €/yr Electricity sales
- 174 €/yr Water tax
+ 5,412 €/yr O&M savings
+ 0 €/yr Other savings
10,523 €/yr Total
Relative additional income for whole HPP
= net annual additional income / baseline total energy sale
= 10,523 €/yr / 164,308 €/yr
= 6.4%
Small HPP, ECM Turbine Controls
Life cycle capital investments Net investment schedule (€)
Year New Old Net
Net investments 0 26,250 0 26,250
= new investments - avoided old investments 1 0 0 0
2 0 0 0
3 0 0 0
4 0 0 0
5 1,313 580 733
6 0 0 0
7 0 0 0
8 0 0 0
9 0 0 0
10 1,313 580 733
11 0 0 0
12 0 0 0
13 0 0 0
14 0 0 0
15 1,313 580 733
16 0 0 0
17 0 0 0
18 0 0 0
19 0 0 0
Small HPP, ECM Turbine Controls
Life Cycle Cost Analysis
LCC InputSummary of Steps 3-6
This page collects all necessary input for LCC analysis below from input and calculations above.
Summary of Step 3, Costs & Benefits Life cycle capital
investment schedule
Year Net (€)
0 26,250
Annual revenue increase 10,523 €/yr (from Step 3) 1 0
2 0
3 0
4 0
5 733
6 0
7 0
8 0
9 0
10 733
11 0
12 0
13 0
14 0
15 733
16 0
17 0
18 0
19 0
Step 4. Discount Rate 20.5% (input)
Step 5. Analysis Period 10 years (input)
Step 6. Residual Value 5% of initial cost (input)
= 0.05 x 26,250 €
= 1,313 € in yr # 10
Small HPP, ECM Turbine Controls
Life Cycle Cost Analysis
LCC Calculations
Step 7. Revenue increase (€/yr) Formula: PV annual increase = annual increase / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8
Net annual savings 0 10,523 10,523 10,523 10,523 10,523 10,523 10,523 10,523
PV annual savings 0 8,732 7,247 6,014 4,991 4,142 3,437 2,852 2,367
Σ PV ann. savings 43,377
Step 8. Investments (€) Formula: PV capital investment = capital investment / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8
Net cap. investments 26,250 0 0 0 0 733 0 0 0
PV cap. investments 26,250 0 0 0 0 288 0 0 0
Σ PV cap. invest. 26,335
Cash Flows for IRR (€) Formula: Revenue increase - investment = cash flow
Year 0 1 2 3 4 5 6 7 8
Net cash flows (26,250) 10,523 10,523 10,523 10,523 9,790 10,523 10,523 10,523
PV cash flows (26,250) 8,732 7,247 6,014 4,991 3,853 3,437 2,852 2,367
Σ PV cash flows (NPV) 17,042
(30,000)
(20,000)
(10,000)
0
10,000
20,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
(€)
ECM Years
Small HPP ECM Turbine Controls
Cash Flows
Net cash flows
PV cash flows
31 May2011
SEMISE
Small HPP, ECM Turbine Controls
Life Cycle Cost Analysis
LCC OutputResults
OUTPUTS Formulas:
Step 9. Net Present Value (NPV, €) 17,042 = Σ PV ann. revenue increase - Σ PV life cycle invest.
Step 10. Savings-to-Investment Ratio (SIR) 1.65 = Σ PV ann. revenue increase / Σ PV life cycle invest.
Internal Rate of Return (IRR) 38.4% = Discount rate, where SIR = 1.0, or NPV = 0
Not LCC: Simple Payback (years) 2.5 = Initial investment / annual revenue increase
Small HPP, ECM Turbine Controls
Enterprise X, SHPP #1ECM Siphon Turbine Gensets
Analysis by SEMISE Sustainable energy team31 May 2011
Summary TableImprovements LCC Feasibility Indicators Emissions Reductions
Produc-
tion
increase
(MWh/yr)
Net new
revenue
(1000
€/yr)
Relative
annual
revenue
increase
Net in-
vestment
(1000 €)
NPV
(1000 €)
SIR IRR
Simple
payback
(yr)
CO2
(T/yr)
NOx
(T/yr)
SOx
(T/yr)
271 21.0 7.9% 78.3 12.7 1.15 24.6% 3.7 135 0.6 2.7
Note: This ECM analyzes either 1 or 2 new siphon turbine gensets.
Select here >> 2 genset(s)
Recommendations Actions
1. Install two siphon type turbine gensets.
• Location: Gate #2
• Specifications
o Capacity: 50 kW
o Flow: 1.25 m3/s flow
• Manufacturer: "Vinnitsya Spetsenergo Montazh" in Vinnitsya, Ukraine (or equivalent)
• Model: GTS-50 (or equivalent)
0
50
100
150
200
250
300
350
400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP #1, ECM Siphon Turbine Gensets
Electricitry Production Increase(MWh)
31 May2011
SEMISE
Increase
8.6% increasewith 2 siphon turbine(s) After
Before
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Approximate installed costs
(including 5% contingency) Price Qty. Cost
Siphon turbine genset(s) 25,200 € ea. 2 50,400 €
Genset installation 11,550 € ea. 2 23,100 €
Controls 2,730 € 1 2,730 €
Controls installation 2,100 € 1 2,100 €
Overall 78,330 €
Results, using 2 new genset(s)
• 20.1% HPP capacity increase
• 8.6% increase in electricity production (more genset output)
• 7.9% increase in revenue (more genset output + less genset maintenance)
• Using a 20.5% discount rate:
o NPV ~ 12,700 €
o IRR = 24.6%
Discussion More energy from water
• Audit survey found that 3-year average excess waterflow of ~ 41,400 000 m3/yr is not used by the HPP.
• This is a lost water resource that may be managed better to generate more electricity.
• Using 2 new genset(s) (specified above),
o Additional annual water usage will be ~ 24,300 000 m3/yr.
o Additional annual electricity production will be ~ 271,000 kWh/yr.
Options
• This analysis compares the feasibility of either 1 or 2 additional new siphon turbine gensets.
• With genset cost of 25,000 €, ECM is profitable with either 1 or 2 new gensets.
• IRR (interest) is similar with either 1 or 2 additional gensets, but NPV (profit) is higher with 2.
• Basic business principle: Maximize profit.
∴ This audit recommends 2 new siphon turbine gensets.
Technology
• Siphon turbines are designed to work outside the powerhouse.
∴ HPP gains new generation capacity without new powerhouse expense.
Energy accounting
• This ECM is independent.
• It is not influenced by the outcomes of other ECMs in the power house.
∴ In this case, both absolute and relative improvements are calculated from original baseline before
other ECMs.
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
InputTechnical
Electricity generation 2008 2009 2010 (client records)
Month (kWh) (kWh) (kWh)
Jan 199,371 285,945 217,338
Feb 186,879 295,086 183,876
Mar 230,427 318,846 324,786
Apr 306,720 312,852 313,284
May 313,650 293,133 272,508
Jun 254,688 292,040 316,068
Jul 214,701 257,052 306,498
Aug 292,365 185,328 235,206
Sep 228,933 165,978 174,864
Oct 316,566 217,020 286,644
Nov 295,794 228,780 258,918
Dec 303,357 199,272 312,780
Water bypass flow Height Velocity Width
Gate (m) (m/s) (m)
0.00 0.00 -
#1 = #4 0.15 1.30 5.00 (audit measurement)
#2 0.21 1.35 5.00 (audit measurement)
#3 0.10 0.80 5.00 (audit measurement)
#5 0.03 0.50 3.00 (audit measurement)
experimental 0.50 1.50 -
experimental 0.55 1.50 -
experimental 0.60 1.50 -
experimental 0.65 1.50 -
Average height and time 20 08 20 09 20 10 (client records)
of bypass water, Height Time Height Time Height Time
Gate #2 Month (m) (days) (m) (days) (m) (days)
Jan 0.00 0 0.16 8 0.00 0
Feb 0.00 0 0.17 28 0.09 4
Mar 0.00 0 0.28 29 0.20 26
Apr 0.05 22 0.26 30 0.28 21
May 0.20 31 0.05 4 0.20 13
Jun 0.05 7 0.10 19 0.22 30
Jul 0.05 7 0.05 1 0.16 29
Aug 0.25 14 0.00 0 0.10 6
Sep 0.20 14 0.00 0 0.30 23
Oct 0.20 31 0.00 0 0.16 10
Nov 0.05 12 0.00 0 0.00 0
Dec 0.00 0 0.00 0 0.05 2
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
HPP head 6.88 m (HPP design)
Existing turbine gensets
Quantity of gensets 2 units (HPP design)
Generator (measured at contacts) #1 #2
Phase A current 349 294 A/ph (audit measurement)
Phase B current 342 310 A/ph (audit measurement)
Phase C current 352 334 A/ph (audit measurement)
Stator line voltage 445 459 V (audit measurement)
Cos φ 0.99 0.94 (audit measurement)
Efficiencies (used for water tax calculation)
Turbine 78.0% (from nameplate)
Generator 89.8% (from nameplate)
New gensets, siphon type
Quantity of gensets: either 1 or 2 units (See "Selection" above.)
Head 6.00 m (HPP design)
Turbines
Rated water flow capacity 1.25 m3/s (manufacturer)
Rated effiency 74% (manufacturer)
Generators
Rated power output 50 kW (manufacturer)
Rated overload without damage 3% (manufacturer)
Rated effiency 92% (manufacturer)
For hydropower calculations:
Hydropower constant 367.1 s3/h · m (HPP engineering practice)
Gravitational acceleration 9.807 m/s2 (physics)
Annual water volume
Formula W (m3/yr) = (E x 3600) / 9.81 (m/s
2) x h net (m) x η t x η gen (HPP engineering practice)
where W = annual HPP water volume
E = annual energy production
h = head
η t = turbine effiency
η gen = generator efficiency
Time
Hours in a day 24 h/day (universal)
Seconds in an hour 3,600 s/h (universal)
Emission factors for electricity
CO2 0.50 kg/kWh (national ministry of energy)
NOx 2.2 g/kWh (national ministry of energy)
SOx 9.9 g/kWh (national ministry of energy)
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Financial
Electricity sale tariff 0.0850 €/kWh (national green tariff)
Water tax
Tariff (R) 0.00442 € / 100 m3 (national law)
Formula Cost (€/yr) = [W (m3/yr) / 100] x R (€/m
3 ) (national law)
where W = annual HPP water volume
R = tariff
O&M costs for siphon turbines
Old 0 €/yr (do not exist)
New 2% /yr of genset cost (SEMISE estimate)
Other annual costs for siphon turbines
Old 0 €/yr (do not exist)
New 0 €/yr (SEMISE estimate)
Investments & re-investments (without VAT) for siphon turbines
Old 0 €/unit (do not exist)
New
Siphon gensets
Price 24,000 €/unit (manufacturer)
Installation 11,000 €/unit (manufacturer)
Controls
Controls cost 2,600 € (manufacturer)
Installation (fixed) 2,000 € (SEMISE estimate)
Re-investment 15% of initial investment (manufacturer)
1st year of re-investment: yr # 5 (manufacturer)
Re-investment period: every 5 yr after 1st year (manufacturer)
Contingency 5% of initial investment (SEMISE estimate)
Discount rate 20.5% (client)
Analysis period 14 yr (SEMISE choice)
Residual value 5% of initial cost (SEMISE estimate)
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
AnalysisStep 1. BaselineTechnical
Units calculations
Physics Units
Force force = mass x acceleration
F = ma N = (kg)(m/s2)
Mass mass = force / acceleration
m = F/a kg = (N)(s2/m)
Flow H2O vol. flow rate = H2O mass flow rate (because SG H20 = 1)
or q dot = m dot m3H2O/s = t H2O/s
= 1000 kg/s
= 1000 (N)(s2/m)/s
= 1000 Ns/m
Power power = force x velocity
P = Fv W = (N)(m/s)
kW = 1000 Nm/s
Explanation:
Hydropower constant = seconds-to-hours time conversion / gravitational acceleration
3,600 s s2
h 9.81 m
367.1 s3
h · m
=
=
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Old power output, genset #1
Mean current
= sum of current of phases (A + B + C) / quantity of phases
= ( 349 A/ph + 342 A/ph + 352 A/ph) / 3 ph
= 348 A
Generator power output
= x stator line voltage x mean current x cos φ
= 1.732 x 445 V x 348 A x 0.99
= 265 kW
Old power output, genset #2
Mean current
= sum of current of phases (A + B + C) / quantity of phases
= ( 294 A/ph + 310 A/ph + 334 A/ph) / 3 ph
= 312 A
Generator power output
= x stator line voltage x mean current x cos φ
= 1.732 x 459 V x 312 A x 0.94
= 233 kW
Existing actual genset power output, whole HPP
= output of genset #1 + output of genset #2
= 265 kW + 233 kW
= 498 kW
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Average baseline electricity production
( 2008 + 2009 + 2010 ) / Qty. of = Average
Month (kWh) (kWh) (kWh) samples (kWh)
Jan ( 199,371 + 285,945 + 217,338 ) / 3 = 234,218
Feb ( 186,879 + 295,086 + 183,876 ) / 3 = 221,947
Mar ( 230,427 + 318,846 + 324,786 ) / 3 = 291,353
Apr ( 306,720 + 312,852 + 313,284 ) / 3 = 310,952
May ( 313,650 + 293,133 + 272,508 ) / 3 = 293,097
Jun ( 254,688 + 292,040 + 316,068 ) / 3 = 287,599
Jul ( 214,701 + 257,052 + 306,498 ) / 3 = 259,417
Aug ( 292,365 + 185,328 + 235,206 ) / 3 = 237,633
Sep ( 228,933 + 165,978 + 174,864 ) / 3 = 189,925
Oct ( 316,566 + 217,020 + 286,644 ) / 3 = 273,410
Nov ( 295,794 + 228,780 + 258,918 ) / 3 = 261,164
Dec ( 303,357 + 199,272 + 312,780 ) / 3 = 271,803
Annual ( 3,143,451 + 3,051,332 + 3,202,770 ) / 3 = 3,132,518
0
100
200
300
400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP #1, ECM Siphon Turbine Gensets
Baseline Electricity Generation(MWh)
31 May2011
SEMISE
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
H2O ∆*gate
height height
Gate (m) (m)
#1 = #4 0.15 0.06
#2 0.21 0.00
#3 0.10 0.11
#5 0.03 0.18
* ∆ = difference in elevation
between gate #2 and others
Calculate overflow for each gate.
Gate #1, 2008 Gate #1, 2009 Gate #1, 2010
H2O ht. velocity overflow H2O ht. velocity overflow H2O ht. velocity overflow
Month (m) (m/s) (m3/s) (m) (m/s) (m
3/s) (m) (m/s) (m
3/s)
Jan 0 0.05 0.00 0.10 0.94 0.47 0 0.05 0.00
Feb 0 0.05 0.00 0.11 1.00 0.55 0.03 0.39 0.06
Mar 0 0.05 0.00 0.22 1.39 1.53 0.14 1.15 0.81
Apr 0 0.05 0.00 0.20 1.35 1.35 0.22 1.39 1.53
May 0.14 1.15 0.81 0 0.05 0.00 0.14 1.15 0.81
Jun 0 0.05 0.00 0.04 0.48 0.10 0.16 1.23 0.98
Jul 0 0.05 0.00 0 0.05 0.00 0.10 0.94 0.47
Aug 0.19 1.33 1.26 0 0.05 0.00 0.04 0.48 0.10
Sep 0.14 1.15 0.81 0 0.05 0.00 0.24 1.43 1.71
Oct 0.14 1.15 0.81 0 0.05 0.00 0.10 0.94 0.47
Nov 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Dec 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Gate #2, 2008 Gate #2, 2009 Gate #2, 2010
Month (m) (m/s) (m3/s) (m) (m/s) (m
3/s) (m) (m/s) (m
3/s)
Jan 0 0.05 0.00 0.16 1.23 0.98 0 0.05 0.00
Feb 0 0.05 0.00 0.17 1.27 1.08 0.09 0.88 0.40
Mar 0 0.05 0.00 0.28 1.47 2.06 0.20 1.35 1.35
Apr 0.05 0.57 0.14 0.26 1.46 1.89 0.28 1.47 2.06
May 0.20 1.35 1.35 0.05 0.57 0.14 0.20 1.35 1.35
Jun 0.05 0.57 0.14 0.10 0.94 0.47 0.22 1.39 1.53
Jul 0.05 0.57 0.14 0.05 0.57 0.14 0.16 1.23 0.98
Aug 0.25 1.44 1.80 0 0.05 0.00 0.10 0.94 0.47
Sep 0.20 1.35 1.35 0 0.05 0.00 0.30 1.49 2.23
Oct 0.20 1.35 1.35 0 0.05 0.00 0.16 1.23 0.98
Nov 0.05 0.57 0.14 0 0.05 0.00 0 0.05 0.00
Dec 0 0.05 0.00 0 0.05 0.00 0.05 0.57 0.14
Gate #1
5 m
Gate #2
5 m
Gate #3
5 m
Gate #4
5 m
Gate #5
3 m
15 c
m
21
cm
15 c
m
10
cm
3 c
m
Gate surface
Water surface
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Gate #3, 2008 Gate #3, 2009 Gate #3, 2010
Month (m) (m/s) (m3/s) (m) (m/s) (m
3/s) (m) (m/s) (m
3/s)
Jan 0 0.05 0.00 0.05 0.57 0.14 0 0.05 0.00
Feb 0 0.05 0.00 0.06 0.66 0.20 0 0.05 0.00
Mar 0 0.05 0.00 0.17 1.27 1.08 0.09 0.88 0.40
Apr 0 0.05 0.00 0.15 1.19 0.89 0.17 1.27 1.08
May 0.09 0.88 0.40 0 0.05 0.00 0.09 0.88 0.40
Jun 0 0.05 0.00 0 0.05 0.00 0.11 1.00 0.55
Jul 0 0.05 0.00 0 0.05 0.00 0.05 0.57 0.14
Aug 0.14 1.15 0.81 0 0.05 0.00 0 0.05 0.00
Sep 0.09 0.88 0.40 0 0.05 0.00 0.19 1.33 1.26
Oct 0.09 0.88 0.40 0 0.05 0.00 0.05 0.57 0.14
Nov 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Dec 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Gate #4, 2008 Gate #4, 2009 Gate #4, 2010
Month (m) (m/s) (m3/s) (m) (m/s) (m
3/s) (m) (m/s) (m
3/s)
Jan 0 0.05 0.00 0.10 0.94 0.47 0 0.05 0.00
Feb 0 0.05 0.00 0.11 1.00 0.55 0.03 0.39 0.06
Mar 0 0.05 0.00 0.22 1.39 1.53 0.14 1.15 0.81
Apr 0 0.05 0.00 0.20 1.35 1.35 0.22 1.39 1.53
May 0.14 1.15 0.81 0 0.05 0.00 0.14 1.15 0.81
Jun 0 0.05 0.00 0.04 0.48 0.10 0.16 1.23 0.98
Jul 0 0.05 0.00 0 0.05 0.00 0.10 0.94 0.47
Aug 0.19 1.33 1.26 0 0.05 0.00 0.04 0.48 0.10
Sep 0.14 1.15 0.81 0 0.05 0.00 0.24 1.43 1.71
Oct 0.14 1.15 0.81 0 0.05 0.00 0.10 0.94 0.47
Nov 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Dec 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Gate #5, 2008 Gate #5, 2009 Gate #5, 2010
Month (m) (m/s) (m3/s) (m) (m/s) (m
3/s) (m) (m/s) (m
3/s)
Jan 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Feb 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Mar 0 0.05 0.00 0.10 0.94 0.28 0.02 0.28 0.02
Apr 0 0.05 0.00 0.08 0.81 0.19 0.10 0.94 0.28
May 0.02 0.28 0.02 0 0.05 0.00 0.02 0.28 0.02
Jun 0 0.05 0.00 0 0.05 0.00 0.04 0.48 0.06
Jul 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Aug 0.07 0.74 0.16 0 0.05 0.00 0 0.05 0.00
Sep 0.02 0.28 0.02 0 0.05 0.00 0.12 1.06 0.38
Oct 0.02 0.28 0.02 0 0.05 0.00 0 0.05 0.00
Nov 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Dec 0 0.05 0.00 0 0.05 0.00 0 0.05 0.00
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Sample calculations. (Gate #3, Aug 2008)
Water height (h)
= measured H2O height at Gate #2 - ∆ height between Gates #2 and #3
= 0.25 m - 0.11 m
= 0.14 m
Water velocity
= ( -24.613 ) h4 + 49.972 h
3 + ( -37.372 ) h
2 + 12.163 h + 0.0533
= ( -24.613 ) x ( 0.14 )4 + 49.972 (49.972 x ( 0.14 )
3
+ ( -37.372 ) x ( 0.14 )2 + 12.163 x ( 0.14 )
1 + 0.0533
= 1.15 m/s
Overflow rate
= water height x gate width x water velocity
= 0.14 m x 5.00 m x 1.15 m/s
= 0.81 m3/s
Calculate total natural river overflow from measurements at all gates.
Natural river overflow
20 08 20 09 20 10 Average
overflow volume overflow volume overflow volume volume
Month (m3/s)
(1000
m3)
(m3/s)
(1000
m3)
(m3/s)
(1000
m3)
(1000
m3)
Jan 0.00 0 2.07 1,432 0.00 0 477
Feb 0.00 0 2.38 5,748 0.51 177 1,975
Mar 0.00 0 6.49 16,267 3.38 7,584 7,950
Apr 0.14 273 5.68 14,733 6.49 11,779 8,929
May 3.38 9,043 0.14 50 3.38 3,792 4,295
Jun 0.14 87 0.66 1,092 4.11 10,662 3,947
Jul 0.14 87 0.14 12 2.07 5,191 1,764
Aug 5.28 6,391 0.00 0 0.66 345 2,245
Sep 3.38 4,084 0.00 0 7.30 14,511 6,198
Oct 3.38 9,043 0.00 0 2.07 1,790 3,611
Nov 0.14 149 0.00 0 0.00 0 50
Dec 0.00 0 0.00 0 0.14 25 8
Annual ` 29,156 39,333 55,856 41,448
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Sample calculations, August (from Overflow calculations above)
Total overflow in Aug 2008 = flows at gates #1 1.26 m3/s
+ #2 1.80 m3/s
+ #3 0.81 m3/s
+ #4 1.26 m3/s
+ #5 0.16 m3/s
Total 5.28 m3/s
Total overflow volume in Aug 2008
= quantity of days of overflow x total overflow rate x hours per day x seconds per hour
= 14 days x 5.28 m3/s x 24 h/day x 3,600 s/h
= 6,391 000 m3
Average August river overflow
= overflow of (Aug 2008 + Aug 2009 + Aug 2010) / quantity of samples
= ( 6,391 000 m3 + 0 000 m
3 + 345 000 m
3) / 3
= 2,245 000 m3
Overflow calculations
Note: Water velocity is a function of water cross sectional height (h) above gate.
Notes • The function uses measured and empirical data input. Best fit factors: 4th power -24.613
• R2 is obtained using the "least squares" regression method. 3rd power 49.972
• The closest R2 to 1.0 defines the "best fit" curve. 2nd power -37.372
• Here R2 = 0.98 produces the curve shown above. 1st power 12.163
• It means that accuracy is approximately 98%. 0 power 0.0533
V (m/s) = -24.613 h4 + 49.972 h3 - 37.372 h2 + 12.163 h + 0.0533
R² = 0.9798
h (m): height of cross-section of flowing water
0.00
0.40
0.80
1.20
1.60
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
Ve
loci
ty (
m/s
)
Height - h (m)
Water Velocity Function7 Feb 2011
SEMISE
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Old average annual energy production
= 3,132,518 kWh/yr (given)
= 3,132,518 kN · m · h/s · yr (from units calculation)
Old annual water volume through HPP (for taxes)
W (m3/yr) = (E x 3600) / (9.81 (m/s
2) x h net (m) x η t x η gen
annual energy prod. time constant
gravitational accel. head turbine eff. gen. eff.
3,132,518 kN · m · h 3,600 s s2
s · yr h 9.807 m 6.88 m 0.780 0.898
= kN · s2/m · yr
= t H2O/yr (from units calculation)
= m3H2O/yr (from units calculation)
Old annual avoided emissions = emission factors x old annual plant electricity production
Old avoided CO2 emissions = 0.50 kg/kWh x 3,133 МWh/yr = 1,566 T/yr
Old avoided NOx emissions = 2.2 g/kWh x 3,133 МWh/yr = 6.9 T/yr
Old avoided SOx emissions = 9.9 g/kWh x 3,133 МWh/yr = 31.0 T/yr
=
=
238,616,503
238,616,503
238,616,503
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Financial
Old annual income from electricity sale
= old annual energy production x electricity sale tariff
= 3,132,518 kWh/yr x 0.0850 €/kWh
= 266,264 €/yr
Old water tax
Cost (€/yr) = [W (m3/yr) /100] x R (€/m
3)
annual HPP water volume water tariff
100
m 3
0.00442 €
yr 100 m 3
= 10,547 €/yr
Old capital re-investments Old Schedule (€)
Year Unit #1 Unit #2
Note: Old siphon turbines do not exist. 0 0 0
∴ No old re-investments. 1 0 0
2 0 0
3 0 0
4 0 0
5 0 0
6 0 0
7 0 0
8 0 0
9 0 0
10 0 0
11 0 0
12 0 0
13 0 0
14 0 0
15 0 0
16 0 0
17 0 0
18 0 0
19 0 0
=
= 238,616,503
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Step 2. New ConditionsTechnical
Additional water flow capacity 1 siphon genset 2 siphon gensets
Rated unit flow capacity 1.25 m3/s · unit 1.25 m
3/s · unit
Quantity of units x 1 unit x 2 units
1.25 m3/s 2.50 m
3/s
Water throughput
1 siphon turbine: Rver overflow through 1 turbine, considering capacity limitation
20 08 20 09 20 10 Average
flow volume flow volume flow volume volume
Month (m3/s)
(1000
m3)
(m3/s)
(1000
m3)
(m3/s)
(1000
m3)
(1000
m3)
Jan 0.00 0 1.25 864 0.00 0 288
Feb 0.00 0 1.25 3,024 0.51 177 1,067
Mar 0.00 0 1.25 3,132 1.25 2,808 1,980
Apr 0.14 273 1.25 3,240 1.25 2,268 1,927
May 1.25 3,348 0.14 50 1.25 1,404 1,601
Jun 0.14 87 0.66 1,092 1.25 3,240 1,473
Jul 0.14 87 0.14 12 1.25 3,132 1,077
Aug 1.25 1,512 0.00 0 0.66 345 619
Sep 1.25 1,512 0.00 0 1.25 2,484 1,332
Oct 1.25 3,348 0.00 0 1.25 1,080 1,476
Nov 0.14 149 0.00 0 0.00 0 50
Dec 0.00 0 0.00 0 0.14 25 8
Totals 10,315 11,414 16,962 12,897
2 siphon turbines: Rver overflow through 2 turbines, considering capacity limitation
20 08 20 09 20 10 Average
flow volume flow volume flow volume volume
Month (m3/s)
(1000
m3)
(m3/s)
(1000
m3)
(m3/s)
(1000
m3)
(1000
m3)
Jan 0.00 0 2.07 1,432 0.00 0 477
Feb 0.00 0 2.38 5,748 0.51 177 1,975
Mar 0.00 0 2.50 6,264 2.50 5,616 3,960
Apr 0.14 273 2.50 6,480 2.50 4,536 3,763
May 2.50 6,696 0.14 50 2.50 2,808 3,185
Jun 0.14 87 0.66 1,092 2.50 6,480 2,553
Jul 0.14 87 0.14 12 2.07 5,191 1,764
Aug 2.50 3,024 0.00 0 0.66 345 1,123
Sep 2.50 3,024 0.00 0 2.50 4,968 2,664
Oct 2.50 6,696 0.00 0 2.07 1,790 2,829
Nov 0.14 149 0.00 0 0.00 0 50
Dec 0.00 0 0.00 0 0.14 25 8
Totals 20,035 21,077 31,936 24,349
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Sample calculations, April 2008, 2 siphon turbines (from "Water throughput" above)
Water volume, April 2008
= water throughput, April 2008 x days of throughput in April 2008 x hours in a day x seconds in an hour
= 0.14 m3/s x 22 days x 24 h/day x 3,600 s/h
= 272,818 m3
Average April water volume
= volume of (Apr 2008 + Apr 2009 + Apr 2010) / quantity of samples
= ( 273 000 m3 + 6,480 000 m
3 + 4,536 000 m
3) / 3
= 3,763 000 m3
Summary of river flow that turbine(s) can accept with 2 genset(s): 24,349 000 m3/yr
Graph of excess water data for 1 siphon turbine and 2 siphon turbines (data from Appendix)
New genset efficiency
= turbine efficiency x generator efficiency
= 0.74 x 0.92
= 0.68
477,363 m3
1,974,856 m3
7,950,329 m3
8,928,513 m3
4,294,834 m3
3,946,661 m3
1,763,510 m3
2,245,289 m3
6,198,150 m3
3,610,960 m3
49,603 m3 8,267 m3
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec
3-yr Average Excess River Water FlowTotal overflow
2 turbines overflow
1 turbine overflow
Capacities
13 Feb2011
SEMISE
24 days11 days 18 days3 days 19 days16 days 12 days 7 days 12 days 14 days 4 days 1 day
(m3/s)
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Additional electricity generation with 2 siphon turbine genset(s)
with 2 siphon turbine(s)
1 siphon genset: Energy production
Water Genset Hydro- Energy
volume x Head x effiency / power = prod.
(1000 m3) (m) constant (kWh)
Jan 288 x 6.00 x 0.68 / 367.1 = 3,205
Feb 1,067 x 6.00 x 0.68 / 367.1 = 11,872
Mar 1,980 x 6.00 x 0.68 / 367.1 = 22,032
Apr 1,927 x 6.00 x 0.68 / 367.1 = 21,441
May 1,601 x 6.00 x 0.68 / 367.1 = 17,809
Jun 1,473 x 6.00 x 0.68 / 367.1 = 16,388
Jul 1,077 x 6.00 x 0.68 / 367.1 = 11,985
Aug 619 x 6.00 x 0.68 / 367.1 = 6,887
Sep 1,332 x 6.00 x 0.68 / 367.1 = 14,821
Oct 1,476 x 6.00 x 0.68 / 367.1 = 16,424
Nov 50 x 6.00 x 0.68 / 367.1 = 552
Dec 8 x 6.00 x 0.68 / 367.1 = 92
Annual 12,897 x 6.00 x 0.68 / 367.1 = 143,509
0
10
20
30
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP #1, ECM Siphon Turbine Gensets
New Siphon Turbine Production(MWh)
31 May2011
SEMISE
with 2 siphon turbine(s)
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
2 siphon gensets: Energy production
Water Genset Hydro- Energy
volume x Head x effiency / power = prod.
(1000 m3) (m) constant (kWh)
Jan 477 x 6.00 x 0.68 / 367.1 = 5,312
Feb 1,975 x 6.00 x 0.68 / 367.1 = 21,975
Mar 3,960 x 6.00 x 0.68 / 367.1 = 44,064
Apr 3,763 x 6.00 x 0.68 / 367.1 = 41,871
May 3,185 x 6.00 x 0.68 / 367.1 = 35,435
Jun 2,553 x 6.00 x 0.68 / 367.1 = 28,406
Jul 1,764 x 6.00 x 0.68 / 367.1 = 19,623
Aug 1,123 x 6.00 x 0.68 / 367.1 = 12,495
Sep 2,664 x 6.00 x 0.68 / 367.1 = 29,643
Oct 2,829 x 6.00 x 0.68 / 367.1 = 31,476
Nov 50 x 6.00 x 0.68 / 367.1 = 552
Dec 8 x 6.00 x 0.68 / 367.1 = 92
Annual 24,349 x 6.00 x 0.68 / 367.1 = 270,942
Summary of additional energy production for 2 genset(s): 270,942 kWh/yr
New electricity production 1 siphon genset 2 siphon gensets
Baseline production 3,132,518 kWh/yr 3,132,518 kWh/yr
Siphon genset production + 143,509 kWh/yr + 270,942 kWh/yr
3,276,026 kWh/yr 3,403,460 kWh/yr
Monthly distribution of new electricity production with 2 siphon turbine genset(s)
Old New
production + Increase = production
(kWh) (kWh) (kWh)
Jan 234,218 + 5,312 = 239,530
Feb 221,947 + 21,975 = 243,922
Mar 291,353 + 44,064 = 335,417
Apr 310,952 + 41,871 = 352,823
May 293,097 + 35,435 = 328,532
Jun 287,599 + 28,406 = 316,004
Jul 259,417 + 19,623 = 279,040
Aug 237,633 + 12,495 = 250,128
Sep 189,925 + 29,643 = 219,568
Oct 273,410 + 31,476 = 304,886
Nov 261,164 + 552 = 261,716
Dec 271,803 + 92 = 271,895
Annual 3,132,518 + 270,942 = 3,403,460
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Additional new electric power output 1 siphon genset 2 siphon gensets
Rated unit capacity 50 kW/unit 50 kW/unit
Quantity of units x 1 units x 2 units
50 kW 100 kW
New average power output 1 siphon genset 2 siphon gensets
Old actual output 498 kW 498 kW
New siphon unit output + 50 kW + 100 kW
548 kW 598 kW
Overload check, new turbine gensets
Manufacturer's rated water flow into turbines
= 1.25 m3/s · unit
= 1,250 N · s/m (from units calculation)
Water power input using manufacturer's rating
= gravitational acceleration x head x new rated flow rate
= 9.81 m/s2 x 6.00 m x 1,250 N · s/m
= 73,553 N · m/s
= 73.6 kW (from units calculation)
Manufacturer's rated new efficiency, siphon turbine gensets
= rated new turbine efficiency x rated new generator efficiency
= 74% x 92%
= 68.1%
New generator output using manufacturer's rated water input
= rated new water power in x rated efficiency, whole HPP
= 73.6 kW x 0.681
= 50.1 kW
Allowable maximum new generator output
= rated generator power output x (1 + rated overload)
= 50.0 kW x ( 1 + 0.03 )
= 51.5 kW
Note: 52 kW < maximum allowable HPP output of 51.5 kW.
∴ New generators will not be damaged.
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
New annual avoided emissions = emission factors x new annual HPP electricity production
1 siphon genset:
New avoided CO2 emissions = 0.50 kg/kWh x 3,276 kWh/yr = 1,638 T/yr
New avoided NOx emissions = 2.2 g/kWh x 3,276 kWh/yr = 7.2 T/yr
New avoided SOx emissions = 9.9 g/kWh x 3,276 kWh/yr = 32.4 T/yr
2 siphon gensets:
New avoided CO2 emissions = 0.50 kg/kWh x 3,403 kWh/yr = 1,702 T/yr
New avoided NOx emissions = 2.2 g/kWh x 3,403 kWh/yr = 7.5 T/yr
New avoided SOx emissions = 9.9 g/kWh x 3,403 kWh/yr = 33.7 T/yr
Financial
New annual income from electricity sale 1 siphon genset 2 siphon gensets
New annual energy production 3,276,026 kWh/yr 3,403,460 kWh/yr
Electricity sale tariff x 0.0850 €/kWh x 0.0850 €/kWh
278,462 €/yr 289,294 €/yr
New water tax
Cost (€/yr) = [W (m3/yr) /100] x R (€/m
3)
additional water volume water tax
100
m 3 0.00442 €
yr 100 m 3
m 3 0.00442 €
yr 100 m 3
New total water tax, whole HPP 1 siphon genset 2 siphon gensets
Old 10,547 €/yr 10,547 €/yr
Additional + 570 €/yr + 1,076 €/yr
11,117 €/yr 11,623 €/yr
New O&M costs = 2% of initial genset cost
1 siphon genset 2 siphon gensets
24,000 € 48,000 €
x 0.02 /yr x 0.02 /yr
480 €/yr 960 €/yr
1 siphon genset: =
=
2 siphon gensets: = 24,349,483
= €/yr
12,897,078= 570 €/yr
1,076
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
New capital investments & re-investments New schedule (€)
Year 1 genset 2 gensets
Total genset cost 1 siphon genset 2 siphon gensets 0 41,580 78,330
Equipment 24,000 € 48,000 € 1 0 0
Installation + 11,000 € + 22,000 € 2 0 0
Total 35,000 € 70,000 € 3 0 0
4 0 0
Total control system 1 siphon genset 2 siphon gensets 5 3,990 7,590
Equipment 2,600 € 2,600 € 6 0 0
Installation + 2,000 € + 2,000 € 7 0 0
Total 4,600 € 4,600 € 8 0 0
9 0 0
Total initial installed equipment cost 10 3,990 7,590
1 siphon genset 2 siphon gensets 11 0 0
Genset 35,000 € 70,000 € 12 0 0
Controls + 4,600 € + 4,600 € 13 0 0
Total 39,600 € 74,600 € 14 0 0
15 3,990 7,590
Contingency ( 5% of total initial cost ) 16 0 0
1 siphon genset 2 siphon gensets 17 0 0
39,600 € 74,600 € 18 0 0
x 0.05 x 0.05 19 0 0
1,980 € 3,730 €
Total initial investment (year 0) 1 siphon genset 2 siphon gensets
Total initial installed equipment cost 39,600 € 74,600 €
Contingency + 1,980 € + 3,730 €
Total 41,580 € 78,330 €
New periodic re-investment = 15% of (genset equipment cost + controls equipment cost)
1 siphon genset 2 siphon gensets
Genset equipment cost 24,000 € 48,000 €
Controls equipment cost + 2,600 € + 2,600 €
Total 26,600 € 50,600 €
x 0.15 x 0.15
New periodic re-investment 3,990 € 7,590 €
1st year of new re-investment: Year # 5 (given)
New re-investment period: every 5 yr after 1st year (given)
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Step 3. BenefitsTechnical
Increase in electricity production with 2 siphon turbine genset(s)
Electricity production New - Old = Increase (from Steps 1 and 2)
increase Month (kWh) (kWh) (kWh)
Jan 239,530 - 234,218 = 5,312
Feb 243,922 - 221,947 = 21,975
Mar 335,417 - 291,353 = 44,064
Apr 352,823 - 310,952 = 41,871
May 328,532 - 293,097 = 35,435
Jun 316,004 - 287,599 = 28,406
Jul 279,040 - 259,417 = 19,623
Aug 250,128 - 237,633 = 12,495
Sep 219,568 - 189,925 = 29,643
Oct 304,886 - 273,410 = 31,476
Nov 261,716 - 261,164 = 552
Dec 271,895 - 271,803 = 92
Annual 3,403,460 - 3,132,518 = 270,942
8.6% increase
Total increase in electricity production 1 siphon genset 2 siphon gensets
New total production 3,276,026 kWh/yr 3,403,460 kWh/yr
Baseline production - 3,132,518 kWh/yr - 3,132,518 kWh/yr
143,509 kWh/yr 270,942 kWh/yr
Average relative power increase, whole HPP
= ( new average output / old actual output) - 1
1 siphon genset: = ( 548 kW / 498 kW) - 1 = 10.0%
2 siphon gensets: = ( 598 kW / 498 kW) - 1 = 20.1%
Summary of average relative power increase, whole HPP, for 2 genset(s): 20.1%
0
50
100
150
200
250
300
350
400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP #1, ECM Siphon Turbine Gensets
Electricitry Production Increase(MWh)
31 May2011
SEMISE
After
Before
Increase
with 2 siphon turbine(s)
8.6% increase
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Relative annual electricity production increase
= annual electricity production increase / old annual electricity production
1 siphon genset: = 143,509 kWh/yr / 3,132,518 kWh/yr = 4.6%
2 siphon gensets: = 270,942 kWh/yr / 3,132,518 kWh/yr = 8.6%
Summary of relative annual electricity production increase for 2 genset(s): 8.6%
Annual emissions reductions
1 siphon genset: Annual reductions = new avoided emissions - old avoided emissions
CO2 reduction = 1,638 T/yr - 1,566 T/yr = 72 T/yr
NOx reduction = 7.2 T/yr - 6.9 T/yr = 0.3 T/yr
SOx reduction = 32.4 T/yr - 31.0 T/yr = 1.4 T/yr
2 siphon gensets: Annual reductions = new avoided emissions - old avoided emissions
CO2 reduction = 1,702 T/yr - 1,566 T/yr = 135 T/yr
NOx reduction = 7.5 T/yr - 6.9 T/yr = 0.6 T/yr
SOx reduction = 33.7 T/yr - 31.0 T/yr = 2.7 T/yr
Summary of emission reductions for 2 genset(s): CO2 = 135 T/yr
NOx = 0.6 T/yr
SOx = 2.7 T/yr
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Financial
Additional annual income
Electricity sales 1 siphon genset 2 siphon gensets
New 278,462 €/yr 289,294 €/yr
Old 266,264 €/yr - 266,264 €/yr
12,198 €/yr 23,030 €/yr
Water tax 1 siphon genset 2 siphon gensets
New 11,117 €/yr 11,623 €/yr
Old - 10,547 €/yr - 10,547 €/yr
570 €/yr 1,076 €/yr
O&M savings 1 siphon genset 2 siphon gensets
Old 0 €/yr 0 €/yr
New - 480 €/yr - 960 €/yr
(480) €/yr (960) €/yr
Other 1 siphon genset 2 siphon gensets
Old 0 €/yr 0 €/yr
New - 0 €/yr - 0 €/yr
0 €/yr 0 €/yr
Net annual additional income 1 siphon genset 2 siphon gensets
Electricity sales 12,198 €/yr 23,030 €/yr
Water tax - 570 €/yr - 1,076 €/yr
O&M savings + (960) €/yr + (960) €/yr
Other savings + 0 €/yr + 0 €/yr
12,198 €/yr 20,994 €/yr
Summary of net additional income for 2 genset(s): 20,994 €
Relative add. HPP income = net annual additional income / baseline total energy sale
1 siphon genset: = 12,198 €/yr / 266,264 €/yr = 4.6%
2 siphon gensets: = 20,994 €/yr / 266,264 €/yr = 7.9%
Summary of relative additional income for 2 genset(s): 7.9%
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Life cycle capital investments Net investment schedule (€)
New Old Net
Net investments 1 2 (none) 1 2
= new investments Year genset gensets genset gensets
- avoided old investments 0 41,580 78,330 0 41,580 78,330
1 0 0 0 0 0
2 0 0 0 0 0
3 0 0 0 0 0
4 0 0 0 0 0
5 3,990 7,590 0 3,990 7,590
6 0 0 0 0 0
7 0 0 0 0 0
8 0 0 0 0 0
9 0 0 0 0 0
10 3,990 7,590 0 3,990 7,590
11 0 0 0 0 0
12 0 0 0 0 0
13 0 0 0 0 0
14 0 0 0 0 0
15 3,990 7,590 0 3,990 7,590
16 0 0 0 0 0
17 0 0 0 0 0
18 0 0 0 0 0
19 0 0 0 0 0
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Life Cycle Cost Analysis
LCC InputSummary of Steps 3-6
This page collects all necessary input for LCC analysis below from input and calculations above.
Summary of Step 3, Costs & Benefits Life cycle net capital
investment schedule
for 2 genset(s) Year (€)
0 78,330
Annual revenue increase 20,994 €/yr (from Step 3) 1 0
2 0
3 0
4 0
5 7,590
6 0
7 0
8 0
9 0
10 7,590
11 0
12 0
13 0
14 0
15 7,590
16 0
17 0
18 0
19 0
Step 4. Discount Rate 20.5% (input)
Step 5. Analysis Period 14 yr (input)
Step 6. Residual Value 5% of initial investment (input)
1 siphon genset 2 siphon gensets
Total initial investment 41,580 € 78,330 €
x 0.05 x 0.05
2,079 € 3,917 €
Summary, residual value for 2 genset(s): 3,917 €
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Life Cycle Cost Analysis
LCC Calculations
Step 7. Revenue increase (€/yr) Formula: PV annual increase = annual increase / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8
Net ann. increases 0 20,994 20,994 20,994 20,994 20,994 20,994 20,994 20,994
PV annual increases 0 17,422 14,458 11,999 9,957 8,263 6,858 5,691 4,723
Σ PV ann. increases 94,884
Step 8. Investments (€) Formula: PV capital investment = capital investment / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8
Net cap. investments 78,330 0 0 0 0 7,590 0 0 0
PV cap. investments 78,330 0 0 0 0 2,987 0 0 0
Σ PV cap. invest. 82,206
Cash Flows for IRR (€) Formula: Revenue increases - investment = cash flow
Year 0 1 2 3 4 5 6 7 8
Net cash flows (78,330) 20,994 20,994 20,994 20,994 13,404 20,994 20,994 20,994
PV cash flows (78,330) 17,422 14,458 11,999 9,957 5,276 6,858 5,691 4,723
Σ PV cash flows (NPV) 12,678
(80)(70)(60)(50)(40)(30)(20)(10)
0102030
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
(1000 €)
ECM Years
SHPP #1, ECM Siphon Turbine Gensets
Cash Flows
Net cash flows
PV cash flows
31 May2011
SEMISE
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
Life Cycle Cost Analysis
LCC OutputResults
OUTPUTS Formulas:
Step 9. Net Present Value (NPV, €) 12,678 = Σ PV ann. revenue increase - Σ PV life cycle invest.
Step 10. Savings-to-Investment Ratio (SIR) 1.15 = Σ PV ann. revenue increase / Σ PV life cycle invest.
Internal Rate of Return (IRR) 24.6% = Discount rate, where SIR = 1.0, or NPV = 0
Not LCC: Simple Payback (years) 3.7 = Initial investment / annual revenue increase
Enterprise X, SHPP #1, ECM Siphon Turbine Gensets
SHPP ABCSummary, All ECMs
Analysis by SEMISE Sustainable energy team 31 Aug 2011
Summary TableImprovements LCC Feasibility Indicators Emissions Reductions
ECM
Produc-
tion
increase
(MWh/yr)
Net new
revenue
(1000
€/yr)
Relative
annual
revenue
increase
Net in-
vestment
(1000 €)
NPV
(1000 €)
SIR IRR
Simple
Payback
(yr)
CO2
(T/yr)
NOx
(Т/yr)
SOx
(T/yr)
Turbine Gensets 752 66.3 25.1% 329.9 30.2 1.12 23.0% 5.0 376 1.7 7.4
Pumps 28 2.3 0.9% 0.6 8.8 15.46 362.2% 0.3 14 0.1 0.3
Overall 780 68.5 26.0% 330.5 39.0 1.16 23.8% 4.8 390 1.7 7.7
24.9% increase
0
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC Summary, All ECMs
Increase in Electricity Production(MWh)
31 Aug2011
SEMISE
After
Before
24.9% increase
SHPP ABC, Summary, All ECMs
Summary Life Cycle Cost Analysis
LCC Input
Life Cycle Investment Schedule Data for graph Baseline Genset Pump Total
Total Net Investments of ECMs (€) prod. + increase + increase = new prod.
Year Gensets Pumps Total Month (MWh) (MWh) (MWh) (MWh)
0 329,873 630 330,503 Jan 256 + 62 + 2.4 = 320
1 0 0 0 Feb 276 + 66 + 2.2 = 344
2 0 0 0 Mar 323 + 78 + 2.4 = 403
3 (58,000) (100) (58,100) Apr 324 + 78 + 2.3 = 404
4 (58,000) 0 (58,000) May 250 + 60 + 2.4 = 313
5 0 158 158 Jun 242 + 58 + 2.3 = 302
6 0 0 0 Jul 216 + 52 + 2.4 = 270
7 0 0 0 Aug 198 + 47 + 2.4 = 248
8 (58,000) (100) (58,100) Sep 213 + 51 + 2.3 = 266
9 (58,000) 0 (58,000) Oct 291 + 70 + 2.4 = 363
10 82,468 158 82,626 Nov 270 + 65 + 2.3 = 337
11 0 0 0 Dec 276 + 66 + 2.4 = 345
12 0 0 0 Totals 3,136 + 752 + 27.8 = 3,916
13 (58,000) (100) (58,100)
14 (58,000) 0 (58,000) Relative production increase
15 82,468 158 82,626 = ( genset increase + pump increase) / baseline production
16 0 0 0 = ( 752 MWh/yr + 28 MWh/yr) / 3,136 MWh/yr
17 0 0 0 = 24.9%
18 (58,000) (100) (58,100)
19 (58,000) 0 (58,000) Input Summary
Annual net revenue increase 68,531 €/yr
Discount rate 20.5%
Analysis period 10 yr
Residual value 15,738 €
SHPP ABC, Summary, All ECMs
Summary Life Cycle Cost Analysis
Calculations
Step 7. Revenue increase (€/yr) Formula: PV annual increase = annual increase / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8 9 10
Net ann. increases 0 68,531 68,531 68,531 68,531 68,531 68,531 68,531 68,531 68,531 68,531
PV annual increases 0 56,872 47,197 39,167 32,504 26,974 22,385 18,577 15,417 12,794 10,617
Σ PV ann. increases 282,504
`
Step 8. Investments (€) Formula: PV capital investment = capital investment / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8 9 Residual
Net cap. investments 330,503 0 0 (58,100) (58,000) 158 0 0 (58,100) (58,000) (15,738)
PV cap. investments 330,503 0 0 (33,206) (27,509) 62 0 0 (13,070) (10,828) (2,438)
Σ PV cap. invest. 243,514
Cash Flows for IRR (€) Formula: Savings - investment = cash flow
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Net cash flows (330,503) 68,531 68,531 126,631 126,531 68,373 68,531 68,531 126,631 126,531 84,269 0 0 0 0
PV cash flows (330,503) 56,872 47,197 72,373 60,013 26,912 22,385 18,577 28,487 23,622 13,056 0 0 0 0
Σ PV cash flows (NPV) 38,991
(400)
(300)
(200)
(100)
0
100
200
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
(1000 €)
ECM Years
SHPP ABC, All ECMs
Cash Flows
Net cash flows
PV cash flows
31 Aug2011
SEMISE
SHPP ABC, Summary, All ECMs
Summary Life Cycle Cost Analysis
LCC OutputResults
OUTPUTS Formulas:
Net Present Value (NPV, €) 38,991 = Σ PV annual revenue increase - Σ PV life cycle investments
Savings-to-Investment Ratio (SIR) 1.2 = Σ PV annual revenue increase / Σ PV life cycle investments
Internal Rate of Return (IRR) 24% = Discount rate, where SIR = 1.0, or NPV = 0
Not LCC: Simple Payback (years) 4.8 = Net initial investment / annual revenue increase
SHPP ABC, Summary, All ECMs
SHPP ABCECM Turbine Gensets
Analysis by SEMISE Sustainable energy team31 Aug 2011
Summary TableImprovements LCC Feasibility Indicators Emissions Reductions
Additional
produc-
tion
(MWh/yr)
Net new
revenue
(1000
€/yr)
Relative
annual
revenue
increase
Net in-
vestment
(1000 €)
NPV
(1000 €)
SIR IRR
Simple
payback
(yr)
CO2
(T/yr)
NOx
(Т/yr)
SOx
(Т/yr)
752 66.3 25.1% 330 30.2 1.12 23.0% 5.0 376 1.7 7.4
Recommendations Actions
1. Replace both old turbine impellers with new.
• Specifications:
o Efficiency: 91%
o Flow: 9.0 m3/s
o Blades: 6 blades
o Diameter: 1600 mm
o Head: 4.11 m
o Steel mark: St20-gsl, (Ukranian GOST 977-88 (or equivalent), stainless steel for long life)
• Manufacturer: "Minhydro" Ltd. in Kharkiv, Ukraine (or equivalent)
2. Overhaul both entire turbines.
3. Replace both old generators with new.
• Specifications:
o Efficiency: 93%
• o Capacity: 300 kW
• o Speed: 187 rpm
• Manufacturer: OJSC “ZKEM” in Nova Kakhovka, Ukraine (or equivalent)
• Model: VGS 300-0.4-32 U1 (or equivalent)
0
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC, ECM Turbine Gensets
Increase in Electricity Production(MWh)
31 August2011
SEMISE
After
Before
24% increase
SHPP ABC, ECM Turbine Gensets
4. Replace HPP and generator control system with new system.
• Manufacturer: “Promenergia” in Ternopil, Ukraine (or equivalent)
Approximate installed costs
(including 5% contingency) Price Qty. Cost
Installed impellers 101,499 € 2 202,999 €
Complete turbine overhaul 10,500 € 2 21,000 €
Generators 143,499 € 2 286,999 €
Control system 33,600 € 1 33,600 €
Generator & controls installation, all 40,775 € 1 40,775 €
Total 585,372 €
• The benefit of this ECM is its huge increase in HPP efficiency from 67% to 85%
• 24% increase in electricity production (more efficiency)
• 25% increase in revenue (more efficiency + less maintenance)
• Using a 20.5% discount rate:
o NPV ~ 30 thousand €
o IRR = 23.0%
• The project is profitable.
• Each new generator will have increased rated capacity of 300 kW.
• HPP output will increase from 485 kW to 601 kW.
• The new equipment can produce an additional 752 MWh/yr, worth 66,252 €/yr.
Discussion Output
• With this ECM, generator capacity will be increased to match full output of rebuilt turbines.
• Original rated genset capacity was probably 250 kW ea., but clear records do not exist.
• Measured output during this energy audit:
o Genset #1: 232 kW, i.e., 7% less than genset #2 due to worn condition.
o Genset #2: 253 kW
• Predicted new output is average, considering wear over equipment's service life.
Other option
• This energy audit also looked at the possibility of increasing turbine capacity.
• However, most of the year the river offers less flow than the HPP's turbine capacity.
• Only approximately 10% of the year is there excess flow.
• Therefore, increasing turbine capacity is not justified.
Water tax
• Water tax is not based on measured water but is calculated from electricity production and efficiency.
• Since production and efficiency change together, water tax does not change in this ECM.
∴ Water tax is not calculated in this ECM.
Emissions
• Emissions from hydropower are considered to be zero.
• New hydropower in grid offsets all emissions for the same amount of thermally produced power.
• Emissions factors are taken from government published averages for electric grid.
SHPP ABC, ECM Turbine Gensets
InputTechnical
2008 2009 2010
Electricity generation Month (kWh) (kWh) (kWh) (client records)
Jan 239,840 271,000 258,540
Feb 275,830 324,390 227,036
Mar 299,890 321,000 348,762
Apr 330,080 321,780 321,139
May 300,270 220,600 229,984
Jun 195,580 219,550 309,490
Jul 175,880 231,700 241,004
Aug 290,940 158,330 144,750
Sep 225,660 155,740 257,670
Oct 301,100 266,540 303,944
Nov 328,610 226,690 254,129
Dec 337,340 207,020 284,950
Average river flow distribution, mid-level 50% probability, River at SHPP (client records)
Month (m3/s)
Jan 7.9
Feb 5.8
Mar 53.2
Apr 21.4
May 10.3
Jun 8.8
Jul 4.8
Aug 5.9
Sep 6.8
Oct 9.5
Nov 12.7
Dec 13.7
River water intake to turbines
Water height at grilles 2.48 m (audit measurement)
Bar thickness 0.01 m (audit measurement)
Intakes #1 #2
Quantity of bars in grille 64 62 bars (audit count)
Width of inlet opening 3.95 4.02 m (audit measurement)
Water velocity 1.03 1.14 m/s (audit measurement)
Head, river at SHPP 4.11 m (HPP design)
0
10
20
30
40
50
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
River
Average Monthly Flow Distribution(mid-level 50% probability)
Actual Data
(m3/s)
31 Aug2011
SEMISE
SHPP ABC, ECM Turbine Gensets
Turbine gensets
Quantity 2 units (HPP design)
Old generators #1 #2
Measurements at contacts
Phase A current 312 365 A/ph (audit measurement)
Phase B current 327 374 A/ph (audit measurement)
Phase C current 310 350 A/ph (audit measurement)
Stator line voltage 436 415 V (audit measurement)
Cos φ 0.97 0.97 (audit measurement)
New equipment
Impellers
Rated effiency 91% (manufacturer)
Rated water flow capacity 9.0 m3/s (manufacturer)
Blades 6 blades
Diameter 1600 mm
Generators
Rated effiency 93% (manufacturer)
Rated power output 300 kW (manufacturer)
Average output between rebuilds 300.6 kW (maintenance records)
Rated overload w/out damage 3% (manufacturer)
Скорость 187 об/мин
Gravitational acceleration 9.807 m/s2 (physics)
Emission factors for electricity
CO2 0.50 kg/kWh (Ministry of Energy)
NOx 2.20 g/kWh (Ministry of Energy)
SOx 9.90 g/kWh (Ministry of Energy)
SHPP ABC, ECM Turbine Gensets
Financial
Electricity sale tariff 0.08418 €/kWh (green tariff)
O&M costs
Old 45,306 €/yr (client)
New 42,366 €/yr (estimate)
Other annual costs
Old 0 €/yr (client)
New 0 €/yr (none identified)
Investments & re-investments (without VAT)
Old Unit #1 Unit #2
Re-investment cost 58,000 58,000 €/unit (maint. records)
Next year of re-investment: yr # 3 4 (client)
Re-investment period: every 5 5 yr after next year (client)
New
Turbine impellers
Price 30,000 €/unit (manufacturer)
Installation 18,333 €/unit (SEMISE estimate)
Price of turbine overhaul 5,000 €/unit (SEMISE estimate)
Generator cost 68,333 €/unit (manufacturer)
Control system cost 32,000 € (manufacturer)
Install controls & both gens. 38,833 € (SEMISE estimate)
Re-investment 25% of initial investment (SEMISE estimate)
1st year of re-investment: yr # 10 (manufacturer)
Re-investment period: every 5 yr after 1st year (manufacturer)
Contingency 5% of initial investment (SEMISE estimate)
Discount rate 20.5% (client)
Analysis period 10 yr (SEMISE determination)
Residual value 5% of initial cost (SEMISE determination)
SHPP ABC, ECM Turbine Gensets
AnalysisStep 1. BaselineTechnical
Units derivations
Physics Units
Force force = mass x acceleration
F = ma N = (kg)(m/s2)
Mass mass = force / acceleration
m = F/a kg = (N)(s2/m)
Flow H2O vol. flow rate = H2O mass flow rate (because SG H20 = 1)
q dot = m dot m3H2O/s = t H2O/s
= 1000 kg/s
= 1000 (N)(s2/m)/s
= 1000 N · s/m
Power power = force x velocity
P = Fv W = (N)(m/s)
kW = 1000 N · m/s
SHPP ABC, ECM Turbine Gensets
Input power of water, genset #1
Total water cross section
= water height at grille x width of inlet opening #1
= 2.48 m x 3.95 m
= 9.80 m2
Cross section of grille bars
= bar thickness x quantity of bars x water height at grille
= 0.01 m/bar x 64 bars x 2.48 m
= 1.59 m2
Net water cross section
= total water cross section - cross section of grille bars
= 9.80 m2 - 1.59 m
2
= 8.21 m2
Water flow rate to turbine
= net water cross section x water velocity
= 8.21 m2 x 1.03 m/s
= 8.46 m3/s (volumetric flow rate)
= 8,455 (N)(s2/m)/s or N · s/m (from units derivation)
Water power into turbine #1
= gravitational acceleration x head x flow rate
= 9.81 m/s2 x 4.11 m x 8,455 N · s/m
= 340,796 N · m/s
= 341 kW (from units derivation)
Output power, genset #1
Mean current
= sum of current of phases (A + B + C) / quantity of phases
= ( 312 A + 327 A + 310 A) / 3
= 316 A
Generator power output
= x stator line voltage x mean current x cos φ
= 1.732 x 436 V x 316 A x 0.97
= 232 kW
Efficiency, genset #1
= output / input
= 232 kW / 341 kW
= 68.0%
SHPP ABC, ECM Turbine Gensets
Input power of water, genset #2
Total water cross section
= water height at grille x width of inlet opening #2
= 2.48 m x 4.024 m
= 10.0 m2
Cross section of grille bars
= bar thickness x quantity of bars x water height at grille
= 0.01 m/bar x 62 bars x 2.48 m
= 1.54 m2
Net water cross section
= total water cross section - cross section of grille bars
= 10.0 m2 - 1.54 m
2
= 8.44 m2
Water flow rate to turbine
= net water cross section x water velocity
= 8.44 m2 x 1.14 m/s
= 9.62 m3/s (volumetric flow rate)
= 9,624 (N)(s2/m)/s or N · s/m (from units derivation)
Water power into turbine #2
= gravitational acceleration x head x flow rate
= 9.81 m/s2 x 4.11 m x 9,624 N · s/m
= 387,904 N · m/s
= 388 kW (from units derivation)
Output power, genset #2
Mean current
= sum of current of phases (A + B + C) / quantity of phases
= ( 365 A + 374 A + 350 A) / 3
= 363 A
Generator power output
= x stator line voltage x mean current x cos φ
= 1.732 x 415 V x 363 A x 0.97
= 253 kW
Efficiency, genset #2
= output / input
= 253 kW / 388 kW
= 65.2%
SHPP ABC, ECM Turbine Gensets
Output power, actual, whole HPP
= output of genset #1 + output of genset #2
= 232 kW + 253 kW
= 485 kW
Input power, actual, whole HPP
= water power into turbine #1 + water power into turbine #2
= 341 kW + 388 kW
= 729 kW
Efficiency, existing gensets, actual, whole HPP
= output / input
= 485 kW / 729 kW
= 66.5%
SHPP ABC, ECM Turbine Gensets
Average old electricity production
( 2008 + 2009 + 2010 ) / Qty. of = Average
Month (MWh) (MWh) (MWh) samples (MWh)
Jan ( 240 + 271 + 259 ) / 3 = 256
Feb ( 276 + 324 + 227 ) / 3 = 276
Mar ( 300 + 321 + 349 ) / 3 = 323
Apr ( 330 + 322 + 321 ) / 3 = 324
May ( 300 + 221 + 230 ) / 3 = 250
Jun ( 196 + 220 + 309 ) / 3 = 242
Jul ( 176 + 232 + 241 ) / 3 = 216
Aug ( 291 + 158 + 145 ) / 3 = 198
Sep ( 226 + 156 + 258 ) / 3 = 213
Oct ( 301 + 267 + 304 ) / 3 = 291
Nov ( 329 + 227 + 254 ) / 3 = 270
Dec ( 337 + 207 + 285 ) / 3 = 276
Annual ( 3,301 + 2,924 + 3,181 ) / 3 = 3,136
Actual water flow (from Step 1)
= 8.46 m3/s to turbine #1
= 9.62 m3/s to turbine #2
18.08 m3/s total, whole HPP
0
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC, ECM Turbine Gensets
Old Electricity Production(MWh)
31 Aug2011
SEMISE
SHPP ABC, ECM Turbine Gensets
Existing excess river water flow
= actual average river flow, mid-level 50% probability - existing HPP design flow
Av. flow - Design = Excess
Month (m3/s) (m
3/s) (m
3/s)
Jan 7.9 < 18.1
Feb 5.8 < 18.1
Mar 53.2 - 18.1 = 35.1
Apr 21.4 - 18.1 = 3.3
May 10.3 < 18.1
Jun 8.8 < 18.1
Jul 4.8 < 18.1
Aug 5.9 < 18.1
Sep 6.8 < 18.1
Oct 9.5 < 18.1
Nov 12.7 < 18.1
Dec 13.7 < 18.1
Notes: • Most of the year, river offers less flow than HPP's capacity.
• Only approximately 15% of the year is there excess flow.
∴ Increasing turbine capacity is not justified.
Old annual avoided emissions = emission factors x old annual HPP electricity production
Old avoided CO2 emissions = 0.50 kg/kWh x 3,136 MWh/yr = 1,568 T/yr
Old avoided NOx emissions = 2.20 g/kWh x 3,136 MWh/yr = 6.9 T/yr
Old avoided SOx emissions = 9.90 g/kWh x 3,136 MWh/yr = 31.0 T/yr
0
10
20
30
40
50
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
River
Average Monthly Flow Distribution(mid-level 50% probability)
Actual Data
Existing Plant Capacity (18.1 m3/s)
(m3/s)
31 Aug2011
SEMISE
SHPP ABC, ECM Turbine Gensets
Financial
Old annual income from sale of electricity
= old annual electricity production x electricity sale tariff
= 3,136 МWh/yr x 0.084 €/kWh
= 263,954 €/yr
Old capital re-investments Old Schedule (€)
Year Unit #1 Unit #2
Unit #1 0 0 0
Old periodic re-investment 58,000 €/unit (given) 1 0 0
Next re-investment due in year # 3 of project life (given) 2 0 0
Old re-investment period 5 yr (given) 3 58,000 0
4 0 58,000
Unit #2 5 0 0
Old periodic re-investment 58,000 €/unit (given) 6 0 0
Next re-investment due in year # 4 of project life (given) 7 0 0
Old re-investment period 5 yr (given) 8 58,000 0
9 0 58,000
10 0 0
11 0 0
12 0 0
13 58,000 0
14 0 58,000
15 0 0
16 0 0
17 0 0
18 58,000 0
19 0 58,000
SHPP ABC, ECM Turbine Gensets
Step 2. New ConditionsTechnical
Allowable maximum generator output
= rated power output x (1 + rated overload)
= 300 kW x ( 1 + 0.03 )
= 309 kW
Allowable maximum HPP output
= allowable maximum generator output x quantity of gensets
= 309 kW x 2
= 618 kW
Average new HPP output
= average generator output x quantity of gensets
= 301 kW x 2
= 601 kW
Overload check
Manufacturer's rated water flow into turbines, whole HPP
= rated flow per unit x quantity of units
= 9 m3/s · unit х 2 units
= 18 m3/s
= 18,000 N · s/m (from units calculation)
New water power inputs using manufacturer's rating, whole HPP
= gravitational constant x head x new rated flow rate, whole HPP
= 9.81 m/s2 x 4.11 m x 18,000 N · s/m
= 725,522 N · m/s
= 726 kW (from units calculation)
Manufacturer's rated new efficiency, gensets & whole HPP
= rated new turbine efficiency x rated new generator efficiency
= 91% x 93% (from manufacturer)
= 84.6%
Generator power output using manufacturers' ratings
= rated new water power input x rated efficiency, whole HPP
= 726 kW x 0.846
= 614 kW
Note: 614 kW < maximum allowable HPP output of 618 kW
∴ New generators will not be damaged.
SHPP ABC, ECM Turbine Gensets
New production factor
= new average output / old actual output
= 601 kW / 485 kW
= 1.24
New electricity production Baseline New prod New
Month (MWh) factor (MWh)
Jan 256 x 1.24 = 318
Feb 276 x 1.24 = 342
Mar 323 x 1.24 = 401
Apr 324 x 1.24 = 402
May 250 x 1.24 = 310
Jun 242 x 1.24 = 299
Jul 216 x 1.24 = 268
Aug 198 x 1.24 = 246
Sep 213 x 1.24 = 264
Oct 291 x 1.24 = 360
Nov 270 x 1.24 = 335
Dec 276 x 1.24 = 343
Annual 3,136 x 1.24 = 3,888
New annual avoided emissions = emission factors x new annual HPP electricity production
New avoided CO2 emissions = 0.50 kg/kWh x 3,888 MWh/yr = 1,944 T/yr
New avoided NOx emissions = 2.20 g/kWh x 3,888 MWh/yr = 8.6 T/yr
New avoided SOx emissions = 9.90 g/kWh x 3,888 MWh/yr = 38.5 T/yr
0
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC, ECM Turbine Gensets
New Electricity Production(MWh)
31 Aug2011
SEMISE
SHPP ABC, ECM Turbine Gensets
Financial
New annual income from sale of electricity
= new annual energy production x electricity sale tariff
= 3,888 МWh/yr x 0.0842 €/kWh
= 327,266 €/yr
New capital investments & re-investments New schedule
Year (€)
Cost оf installed impellers 0 329,873
= ( impeller price + impeller installation price ) x quantity of units 1 0
= ( 30,000 €/unit + 18,333 €/unit ) x 2 units 2 0
= 96,666 € 3 0
4 0
Cost of turbine overhaul 5 0
= price of overhauling 1 turbine x quantity of turbines 6 0
= 5,000 €/unit х 2 units 7 0
= 10,000 € 8 0
9 0
Generator cost 10 82,468
= generator price per unit x quantity of generators 11 0
= 68,333 €/unit + 2 units 12 0
= 136,666 € 13 0
14 0
Total initial investment (year 0) = Σ (costs x (1 + 5% contingency)) 15 82,468
16 0
Impellers, installed 96,666 € x 1.05 = 101,499 € 17 0
Overhaul of turbines + 10,000 € x 1.05 = 10,500 € 18 0
Generators + 136,666 € x 1.05 = 143,499 € 19 0
Controls + 32,000 € x 1.05 = 33,600 €
Gen. & controls installation + 38,833 € x 1.05 = 40,775 €
Totals 314,165 € 329,873 €
New periodic re-investment
= 25% of total initial investment
= 0.25 x 329,873 €
= 82,468 €
1st year of new re-investment: Year # 10 (given)
New re-investment period every 5 yr after 1st year (given)
SHPP ABC, ECM Turbine Gensets
Step 3. BenefitsTechnical
Increase in HPP New - Old = Increase (from Steps 1 and 2)
electricity Month (MWh) (MWh) (MWh)
production Jan 318 - 256 = 62
Feb 342 - 276 = 66
Mar 401 - 323 = 78
Apr 402 - 324 = 78
May 310 - 250 = 60
Jun 299 - 242 = 58
Jul 268 - 216 = 52
Aug 246 - 198 = 47
Sep 264 - 213 = 51
Oct 360 - 291 = 70
Nov 335 - 270 = 65
Dec 343 - 276 = 66
Annual 3,888 - 3,136 = 752
Relative annual increase in HPP electricity production
= production increase / old production
= 752 MWh/yr / 3,136 MWh/yr
= 24.0%
24% increase
Average relative power increase, whole HPP
= ( new average output / old actual output) - 1
= ( 601 kW / 485 kW) - 1
= 24.0%
0
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC, ECM Turbine Gensets
Increase in Electricity Production(MWh)
31 Aug2011
SEMISE
After
Before
24% increase
SHPP ABC, ECM Turbine Gensets
Annual emissions reductions = (new - old) avoided emissions
CO2 reduction = 1,944 T/yr - 1,568 T/yr = 376 T/yr
NOx reduction = 8.6 T/yr - 6.9 T/yr = 1.7 T/yr
SOx reduction = 38.5 T/yr - 31.0 T/yr = 7.4 T/yr
Financial
Increase in annual income
Additional income from electricity sales
= ( new - old ) electricity sale income
= 327,266 €/yr - 263,954 €/yr
= 63,312 €/yr
Annual O&M savings Other annual savings
= ( old - new ) O&M costs = ( old - new ) other costs
= 45,306 €/yr - 42,366 €/yr = 0 €/yr - 0 €/yr
= 2,940 €/yr = 0 €/yr
Net annual additional income 63,312 €/yr Еlectricity sales
+ 2,940 €/yr O&M savings
+ 0 €/yr Other savings
66,252 €/yr Total
Relative additional income, whole HPP
= net annual additional income / baseline total energy sale
= 66,252 €/yr / 263,954 €/yr
= 25.1%
SHPP ABC, ECM Turbine Gensets
Life cycle capital investments Net investment schedule (€)
Year New Old Net
Net investments 0 329,873 0 329,873
= new investments - avoided old investments 1 0 0 0
2 0 0 0
3 0 58,000 (58,000)
4 0 58,000 (58,000)
5 0 0 0
6 0 0 0
7 0 0 0
8 0 58,000 (58,000)
9 0 58,000 (58,000)
10 82,468 0 82,468
11 0 0 0
12 0 0 0
13 0 58,000 (58,000)
14 0 58,000 (58,000)
15 82,468 0 82,468
16 0 0 0
17 0 0 0
18 0 58,000 (58,000)
19 0 58,000 (58,000)
SHPP ABC, ECM Turbine Gensets
Life Cycle Cost Analysis
LCC InputSummary of Steps 3-6
This page collects all necessary input for LCC analysis below from input and calculations above.
Summary of Step 3, Costs & Benefits Life cycle net capital
investment schedule
Year (€)
0 329,873
Annual revenue increase 66,252 €/yr (from Step 3) 1 0
2 0
3 (58,000)
4 (58,000)
5 0
6 0
7 0
8 (58,000)
9 (58,000)
10 82,468
11 0
12 0
13 (58,000)
14 (58,000)
15 82,468
16 0
17 0
18 (58,000)
19 (58,000)
Step 4. Discount Rate 20.5% (input)
Step 5. Analysis Period 10 years (input)
Step 6. Residual Value 5% of initial investment (input)
= 0.05 x 314,165 €
= 15,708 € in yr # 10
SHPP ABC, ECM Turbine Gensets
Life Cycle Cost Analysis
LCC Calculations
Step 7. Revenue increase (€/yr) Formula: PV annual increase = annual increase / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8
Net ann. increases 0 66,252 66,252 66,252 66,252 66,252 66,252 66,252 66,252
PV annual increases 0 54,981 45,627 37,865 31,423 26,077 21,641 17,959 14,904
Σ PV ann. increases 273,112
Step 8. Investments (€) Formula: PV capital investment = capital investment / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8
Net cap. investments 329,873 0 0 (58,000) (58,000) 0 0 0 (58,000)
PV cap. investments 329,873 0 0 (33,149) (27,509) 0 0 0 (13,048)
Σ PV cap. invest. 242,906
Cash Flows for IRR (€) Formula: Revenue increase - investment = cash flow
Year 0 1 2 3 4 5 6 7 8
Net cash flows (329,873) 66,252 66,252 124,252 124,252 66,252 66,252 66,252 124,252
PV cash flows (329,873) 54,981 45,627 71,014 58,933 26,077 21,641 17,959 27,952
Σ PV cash flows (NPV) 30,206
(400)
(300)
(200)
(100)
0
100
200
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
(1000 €)
ECM Years
SHPP ABC, ECM Turbine Gensets
Cash Flows
Net cash flows
PV cash flows
31 Aug2011
SEMISE
SHPP ABC, ECM Turbine Gensets
Life Cycle Cost Analysis
LCC OutputResults
OUTPUTS Formulas:
Step 9. Net Present Value (NPV, €) 30,206 = Σ PV ann. revenue increase - Σ PV life cycle invest.
Step 10. Savings-to-Investment Ratio (SIR) 1.1 = Σ PV ann. revenue increase / Σ PV life cycle invest.
Internal Rate of Return (IRR) 23.0% = Discount rate, where SIR = 1.0, or NPV = 0
Not LCC: Simple Payback (years) 5.0 = Initial investment / annual revenue increase
SHPP ABC, ECM Turbine Gensets
SHPP ABCECM Pumps
Analysis by SEMISE Sustainable energy team31 Aug 2011
Summary TableImprovements LCC Feasibility Indicators Emissions Reductions
Additional
produc-
tion
(MWh/yr)
Net new
revenue
(1000
€/yr)
Relative
annual
revenue
increase
Net in-
vestment
(1000 €)
NPV
(1000 €)
SIR IRR
Simple
payback
(yr)
CO2
(T/yr)
NOx
(T/yr)
SOx
(T/yr)
27.8 2.3 0.9% 0.6 8.8 15.46 362% 0.3 13.9 0.1 0.3
Recommendations Actions
1. Replace two old, identical, turbine-cooling and bearing-lubricant water pumps (4 kW ea.) with new pumps.
• Specifications:
o Power: 0.75 kW
o Flow capacity: 7.2 m3/h
o Power factor: > 90%
o Control module: (TBD)
• Manufacturer: Pedrollo
• Model: CP-150 Inox
Approximate installed costs
(including 5% contingency) Price Qty. Cost
Pump / motors, installed 189 € 2 378 €
Controls, installed 252 € 1 252 €
Overall 630 €
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC, ECM Pumps
Increase in HPP Production(= Decrease in Pump Consumption)
After
Before
Pump(kWh)
31 Aug 2011
SEMISE
0.9% HPP production increase
81% pump consumption decrease
SHPP ABC, ECM Pumps
Results
• The benefit of this measure is to reduce internal load, allowing more production to be sold.
• 0.9% increase in electricity production (more genset output)
• 0.9% increase in revenue (more genset output + less genset maintenance)
• Using a 20.5% discount rate:
o NPV = 8.8 thousand €
o IRR = 362%
• The project is extremely profitable.
Discussion Pumps
• Existing pumps o Oversized at 4.0 kWo Low efficiencyo Operate full time all year round, i.e., maximum operating time and consumption
• New pumps o Serve same load as old pumps but draw only 0.75 kWo Reduce internal energy consupmtion by 28 MWh/yr
Water tax
• Water volume through the HPP before this ECM = water volume after this ECM.
• In theory, water tax is based on water volume, but water volume through the HPP is not measured.
• Instead, water tax is calculated from a) electric output, b) turbine efficiency, and c) generator efficiency.
• Only electric output changes in this ECM; efficiencies do not.
∴ Water tax increases with this ECM even though water volume does not.
• This is like a small penalty for reducing internal load.
Emissions
• Emissions from hydropower are considered to be zero.
• New hydropower in grid offsets all emissions for the same amount of thermally produced power.
• Emissions factors are taken from government published averages for electric grid.
SHPP ABC, ECM Pumps
InputTechnical
Baseline electricity generation 3,135,586 kWh/yr (client data)
HPP operating time 8,642 h/yr (client data)
Pumps
Quantity 2 items (audit count)
Flow 7.2 m3/h (audit measurement)
Existing pumps, аctual motor readings
Voltage 420 V (audit measurement)
Amperage 7.8 A (audit measurement)
Power factor 0.70 (audit measurement)
New pumps
Rated motor power 0.75 kW (manufacturer)
Power factor > 90% (SEMISE requirement)
Parameters for water tax calculation
Head, river at SHPP 4.11 m (measured)
Turbine efficiency 76.2% (calculated)
Generator efficiency 87.2% (nameplate)
Annual water volume
Formula W (m3/yr) = (E x 3600) / (9.81 (m/s
2) x h net (m) x η t x η gen (HPP engineering practice)
where W = annual HPP water volume
E = annual energy production
h = head
η t = turbine effiency
η gen = generator efficiency
SHPP ABC, ECM Pumps
Formulas, factors & constants
Gravitational acceleration 9.807 m/s2 (physics)
1.7321 (math)
Time
Seconds in an hour 3,600 s/h (universal)
Hours in a day 24 (universal)
Days by month: Month (universal)
Jan 31 days
Feb 28.25 days (average)
Mar 31 days
Apr 30 days
May 31 days
Jun 30 days
Jul 31 days
Aug 31 days
Sep 30 days
Oct 31 days
Nov 30 days
Dec 31 days
Annual 365.25 days (average)
Emission factors for electricity
CO2 0.50 kg/kWh (Ministry of Energy)
NOx 2.20 g/kWh (Ministry of Energy)
SOx 9.90 g/kWh (Ministry of Energy)
SHPP ABC, ECM Pumps
Financial
Electricity sale tariff 0.08418 €/kWh (green tariff)
Water tax
Tariff (R) 0.00442 € / 100 m3 (national law)
Formula Cost (€/yr) = [W (m3/yr) / 100] x R (€/m
3 ) (national law)
where W = annual HPP water volume
R = tariff
O&M costs
Old 150 €/yr (client)
New 50 €/yr (estimate)
Other annual costs
Old 0 €/yr (client)
New 0 €/yr (none identified)
Investments & re-investments (without VAT)
Old
Re-investment cost 100 € (maintenance records)
Next year of re-investment: yr # 3 (maintenance records)
Re-investment period: every 5 yr after next year (maintenance records)
New
Cooling water pump, installed prices
Pump with motor 180 €/unit (manufacturer)
Controls 240 € (manufacturer)
Re-investment 25% of initial investment (SEMISE estimate)
1st year of re-investment: yr # 5 (manufacturer)
Re-investment period: every 5 yr after 1st year (manufacturer)
Contingency 5% of initial investment (SEMISE estimate)
Discount rate 20.5% (client)
Analysis period 10 yr (SEMISE determination)
Residual value 5% of initial cost (SEMISE determination)
SHPP ABC, ECM Pumps
AnalysisStep 1. BaselineTechnical
Old pump actual power input
= x stator line voltage x mean current x cos φ
= 1.732 x 420 V x 7.8 A x 0.70
= 3.97 kW
Hours in a year
= days in a year x hours in a day
= 365.25 days/yr x 24 h/day
= 8,766 h/yr
Operating portion of total time
= annual HPP operating time / hours in a year
= 8,642 h/yr / 8,766 h/yr
= 98.6%
Simplifying assumption: Pump consumption is distributed evenly throughout year.
Old pump electricity consumption
Days in Hours in Operating Old pump Old pump
each mo. x a day x portion x demand = cons.
Month (days) (h/day) of time (kW) (kWh)
Jan 31 x 24 x 0.986 x 3.97 = 2,913
Feb 28.25 x 24 x 0.986 x 3.97 = 2,655
Mar 31 x 24 x 0.986 x 3.97 = 2,913
Apr 30 x 24 x 0.986 x 3.97 = 2,819
May 31 x 24 x 0.986 x 3.97 = 2,913
Jun 30 x 24 x 0.986 x 3.97 = 2,819
Jul 31 x 24 x 0.986 x 3.97 = 2,913
Aug 31 x 24 x 0.986 x 3.97 = 2,913
Sep 30 x 24 x 0.986 x 3.97 = 2,819
Oct 31 x 24 x 0.986 x 3.97 = 2,913
Nov 30 x 24 x 0.986 x 3.97 = 2,819
Dec 31 x 24 x 0.986 x 3.97 = 2,913
Annual 365.25 x 24 x 0.986 x 3.97 = 34,325
SHPP ABC, ECM Pumps
Old annual water volume through HPP (for taxes)
Average old HPP electricity prod. = 3,135,586 kWh/yr = 3,135,586 kN · m · h/s · yr (from units calculation)
W (m3/yr) = (E x 3600) / (9.81 (m/s
2) x h net (m) x η t x η gen
annual energy prod. time constant
gravitational accel. head turbine eff. gen. eff.
3,135,586 kN · m · h 3,600 s s2
s · yr h 9.807 m 4.11 m 76.2% 87.2%
= kN · s2/m · yr
= t H2O/yr (from units calculation)
= m3H2O/yr (from units calculation)
Old annual avoided emissions = emission factors x old annual HPP electricity production
Old avoided CO2 emissions = 0.50 kg/kWh x 3,136 MWh/yr = 1,568 T/yr
Old avoided NOx emissions = 2.20 g/kWh x 3,136 MWh/yr = 6.9 T/yr
Old avoided SOx emissions = 9.90 g/kWh x 3,136 MWh/yr = 31.0 T/yr
Financial
Old annual income from sale of electricity
= old annual electricity production x electricity sale tariff
= 3,135,586 kWh/yr x 0.084 €/kWh
= 263,954 €/yr
421,474,946
=
=
421,474,946
421,474,946
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC, ECM Pumps
Old Pump Electricity Consumption(kWh)
31 Aug2011
SEMISE
SHPP ABC, ECM Pumps
Old internal electricity cost for pumps
= old pump energy consumption x electricity sale tariff
= 34,325 kWh/yr x 0.0842 €/kWh
= 2,890 €/yr
Old water tax
Cost (€/yr) = [W (m3/yr) /100] x R (€/m
3)
old HPP water volume for taxes water tariff
100
m 3 0.00442 €
yr 100 m 3
= 18,629 €/yr
Old capital re-investments Old schedule
Year (€)
Old periodic re-investment 100 € (given) 0 0
Next re-investment due in year # 3 of project life (given) 1 0
Old re-investment period 5 yr (given) 2 0
3 100
4 0
5 0
6 0
7 0
8 100
9 0
10 0
11 0
12 0
13 100
14 0
15 0
16 0
17 0
18 100
19 0
=
= 421,474,946
SHPP ABC, ECM Pumps
Step 2. New ConditionsTechnical
New pump electricity consumption
Days in Hours in Operating New pump New pump
each mo. x a day x portion x demand = cons.
Month (days) (h/day) of time (kW) (kWh)
Jan 31 x 24 x 0.986 x 0.75 = 550
Feb 28.25 x 24 x 0.986 x 0.75 = 501
Mar 31 x 24 x 0.986 x 0.75 = 550
Apr 30 x 24 x 0.986 x 0.75 = 532
May 31 x 24 x 0.986 x 0.75 = 550
Jun 30 x 24 x 0.986 x 0.75 = 532
Jul 31 x 24 x 0.986 x 0.75 = 550
Aug 31 x 24 x 0.986 x 0.75 = 550
Sep 30 x 24 x 0.986 x 0.75 = 532
Oct 31 x 24 x 0.986 x 0.75 = 550
Nov 30 x 24 x 0.986 x 0.75 = 532
Dec 31 x 24 x 0.986 x 0.75 = 550
Annual 365.25 x 24 x 0.986 x 0.75 = 6,482
New annual average HPP electricity production
= old production + (old - new) pump consumption
= 3,135,586 kWh/yr + 34,325 kWh/yr - 6,482 kWh/yr
= 3,163,430 kWh/yr
= 3,163,430 kNmh/s · yr (from units calculation)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC, ECM Pumps
New Pump Electricity Consumption(kWh)
31 Aug2011
SEMISE
SHPP ABC, ECM Pumps
New annual water volume through HPP (for taxes)
W (m3/yr) = (E x 3600) / (9.81 (m/s
2) x h net (m) x η t x η gen
new ann. energy prod. time constant
gravitational accel. head turbine eff. gen. eff.
3,163,430 kN · m · h 3,600 s s2
s · yr h 9.807 m 4.11 m 76% 87%
= kN · s2/m · yr
= t H2O/yr (from units calculation)
= m3H2O/yr (from units calculation)
New annual avoided emissions = emission factors x new annual HPP electricity production
New avoided CO2 emissions = 0.50 kg/kWh x 3,163 MWh/yr = 1,582 T/yr
New avoided NOx emissions = 2.20 g/kWh x 3,163 MWh/yr = 7.0 T/yr
New avoided SOx emissions = 9.90 g/kWh x 3,163 MWh/yr = 31.3 T/yr
Financial
New internal energy cost for pumps
= new pump energy consumption x electricity sale tariff
= 6,482 kWh/yr x 0.0842 €/kWh
= 546 €/yr
New water tax
Cost (€/yr) = [W (m3/yr) /100] x R (€/m
3)
new HPP water volume for taxes water tariff
100
m 3 0.00442 €
yr 100 m 3
= 18,795 €/yr
=
425,217,643
=
=
=
425,217,643
425,217,643
425,217,643
SHPP ABC, ECM Pumps
New capital investments & re-investments New schedule
Year (€)
Cost of both pumps, installed 0 630
= installed price x quantity of units 1 0
= 180 €/unit x 2 units 2 0
= 360 € 3 0
4 0
Total initial investment (year 0) = Σ (costs x (1 + 5% contingency)) 5 158
6 0
Pumps, installed 360 € x 1.05 = 378 € 7 0
Controls, installed + 240 € x 1.05 = 252 € 8 0
Totals 600 € 630 € 9 0
10 158
New periodic re-investment 11 0
= 25% of total initial investment 12 0
= 0.25 x 630 € 13 0
= 158 € 14 0
15 158
1st year of new re-investment: Year # 5 (given) 16 0
New re-investment period every 5 yr after 1st year (given) 17 0
18 0
19 0
SHPP ABC, ECM Pumps
Step 3. BenefitsTechnical
Increase in HPP production Pump Pump HPP (from Steps 1 and 2)
(=decrease in pump cons. cons. prod.
consumption) before - after = increase
Month (kWh) (kWh) (kWh)
Jan 2,913 - 550 = 2,363
Feb 2,655 - 501 = 2,154
Mar 2,913 - 550 = 2,363
Apr 2,819 - 532 = 2,287
May 2,913 - 550 = 2,363
Jun 2,819 - 532 = 2,287
Jul 2,913 - 550 = 2,363
Aug 2,913 - 550 = 2,363
Sep 2,819 - 532 = 2,287
Oct 2,913 - 550 = 2,363
Nov 2,819 - 532 = 2,287
Dec 2,913 - 550 = 2,363
Annual 34,325 - 6,482 = 27,844
Relative annual HPP production increase
= production increase / old production
= 27,844 kWh/yr / 3,135,586 kWh/yr
= 0.9%
Relative annual pump electricity consumption decrease
= consumption decrease / old consumption
= 27,844 kWh/yr / 34,325 kWh/yr
= 81.1%
81% pump consumption decrease
0.9% HPP production increase
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
SHPP ABC, ECM Pumps
Increase in HPP production(= Decrease in pump consumption)
After
Before
(kWh,pumps)
0.9% HPP production increase
31 Aug 2011
SEMISE
81% pump consumption decrease
SHPP ABC, ECM Pumps
Annual emissions reductions = (new - old) avoided emissions
CO2 reduction = 1,582 T/yr - 1,568 T/yr = 13.9 T/yr
NOx reduction = 7.0 T/yr - 6.9 T/yr = 0.1 T/yr
SOx reduction = 31.3 T/yr - 31.0 T/yr = 0.3 T/yr
Financial
Increase in annual income
Additional income from electricity sales Additional annual water tax
= ( old - new ) internal energy cost for pumps = ( new - old ) water tax
= 2,890 €/yr - 546 €/yr = 18,795 €/yr - 18,629 €/yr
= 2,344 €/yr = 165 €/yr
Annual O&M savings Other annual savings
= ( old - new ) O&M cost = ( old - new ) other costs
= 150 €/yr - 50 €/yr = 0 €/yr - 0 €/yr
= 100 €/yr = 0 €/yr
Net annual additional income 2,344 €/yr Electricity sales
- 165 €/yr Water tax
+ 100 €/yr O&M savings
+ 0 €/yr Other savings
2,278 €/yr Total
Relative additional income, whole HPP
= net annual additional income / baseline total energy sale
= 2,278 €/yr / 263,954 €/yr
= 0.9%
SHPP ABC, ECM Pumps
Life cycle capital investments Net investment schedule (€)
Year New Old Net
Net investments 0 630 0 630
= new investments - avoided old investments 1 0 0 0
2 0 0 0
3 0 100 (100)
4 0 0 0
5 158 0 158
6 0 0 0
7 0 0 0
8 0 100 (100)
9 0 0 0
10 158 0 158
11 0 0 0
12 0 0 0
13 0 100 (100)
14 0 0 0
15 158 0 158
16 0 0 0
17 0 0 0
18 0 100 (100)
19 0 0 0
SHPP ABC, ECM Pumps
Life Cycle Cost Analysis
LCC InputSummary of Steps 3-6
This page collects all necessary input for LCC analysis below from input and calculations above.
Summary of Step 3, Costs & Benefits Life cycle net capital
investment schedule
Year (€)
0 630
Annual revenue increase 2,278 €/yr (from Step 3) 1 0
2 0
3 (100)
4 0
5 158
6 0
7 0
8 (100)
9 0
10 158
11 0
12 0
13 (100)
14 0
15 158
16 0
17 0
18 (100)
19 0
Step 4. Discount Rate 20.5% (input)
Step 5. Analysis Period 10 years (input)
Step 6. Residual Value 5% of initial investment (input)
= 0.05 x 600 €
= 30 € in yr # 10
SHPP ABC, ECM Pumps
Life Cycle Cost Analysis
LCC Calculations
Step 7. Revenue increase (€/yr) Formula: PV annual increase = annual increase / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8
Net ann. increases 0 2,278 2,278 2,278 2,278 2,278 2,278 2,278 2,278
PV annual increases 0 1,891 1,569 1,302 1,081 897 744 618 513
Σ PV ann. increases 9,393
Step 8. Investments (€) Formula: PV capital investment = capital investment / (1 + discount rate)year
Year 0 1 2 3 4 5 6 7 8
Net cap. investments 630 0 0 (100) 0 158 0 0 (100)
PV cap. investments 630 0 0 (57) 0 62 0 0 (22)
Σ PV cap. invest. 608
Cash Flows for IRR (€) Formula: Revenue increase - investment = cash flow
Year 0 1 2 3 4 5 6 7 8
Net cash flows (630) 2,278 2,278 2,378 2,278 2,121 2,278 2,278 2,378
PV cash flows (630) 1,891 1,569 1,359 1,081 835 744 618 535
Σ PV cash flows (NPV) 8,785
(1,000)
(500)
0
500
1,000
1,500
2,000
2,500
3,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
(€)
ECM Years
SHPP ABC, ECM Pumps
Cash Flows
Net cash flows
PV cash flows
31 Aug 2011
SEMISE
SHPP ABC, ECM Pumps
Life Cycle Cost Analysis
LCC OutputResults
OUTPUTS Formulas:
Step 9. Net Present Value (NPV, €) 8,785 = Σ PV ann. revenue increase - Σ PV life cycle invest.
Step 10. Savings-to-Investment Ratio (SIR) 15.5 = Σ PV ann. revenue increase / Σ PV life cycle invest.
Internal Rate of Return (IRR) 362% = Discount rate, where SIR = 1.0, or NPV = 0
Not LCC: Simple Payback (years) 0.3 = Initial investment / annual revenue increase
SHPP ABC, ECM Pumps