FEASIBILITY ANALYSIS OF SMALL HYDROPOWER PROJECT USING RETSCREEN DECISION SUPPORT

SYSTEM: A CASE STUDY

A thesis submitted toward partial fulfilment of the requirements for the degree of

Master of Engineering in

Water Resources and Hydraulic Engineering Course affiliated to Faculty of Engineering & Technology

Jadavpur University

Submitted by

PRIYABRATA ADHIKARY ROLL NO.: M6WRP14-01

Under the guidance of

DR. PANKAJ KUMAR ROY

Associate Professor, School Of Water Resources Engineering,

Jadavpur University

School of Water Resources Engineering M.E. (Water Resources & Hydraulic Engineering) course affiliated to

Faculty of Engineering and Technology Jadavpur University

Kolkata-700032 India

2014

M.E. (Water Resources & Hydraulic Engineering) course affiliated to Faculty of Engineering and Technology

Jadavpur University Kolkata, India

_________________________________________________________________

CERTIFICATE OF RECOMMENDATION

This is to certify that the thesis entitled FEASIBILITY ANALYSIS OF SMALL HYDROPOWER PROJECT USING RETSCREEN DECISION SUPPORT SYSTEM: A CASE STUDY is bonafide work carried out by PRIYABRATA ADHIKARY under our supervision and guidance for partial fulfilment of the requirement for Post Graduate Degree of Master of Engineering in Water Resources & Hydraulic Engineering during the academic session 2013-2014. ------------------------------------- THESIS ADVISOR Dr. Pankaj Kumar Roy Associate Professor School of Water Resources Engineering Jadavpur university, Kolkata-700 032 ------------------------------------- DIRECTOR Prof. (Dr.) Asis Mazumdar School of Water Resources Engineering Jadavpur University, Kolkata-700 032 ------------------------------------- DEAN Faculty Council of Interdisciplinary Studies, Law and Management Jadavpur University, Kolkata-700 032

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M.E. (Water Resources & Hydraulic Engineering) course affiliated to

Faculty of Engineering and Technology Jadavpur University

Kolkata, India

CERTIFICATE OF APPROVAL **

This foregoing thesis is hereby approved as a credible study of an engineering subject carried out and presented in a manner satisfactorily to warranty its acceptance as a prerequisite to the degree for which it has been submitted. It is understood that by this approval the undersigned do not endorse or approve any statement made or opinion expressed or conclusion drawn therein but approve the thesis only for purpose for which it has been submitted. ----------------------------------------------- Committee of final examination ----------------------------------------------- for evaluation of Thesis -----------------------------------------------

----------------------------------------------- ** Only in case the thesis is approved.

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DECLARATION OF ORIGINALITY AND COMPLIANCE OF ACADEMIC ETHICS

I hereby declare that this thesis contains literature survey and original research work by the undersigned candidate, as part of his Master of Engineering in Water Resources & Hydraulic Engineering studies during academic session 2013-2014. All information in this document has been obtained and presented in accordance with academic rules and ethical conduct. I also declare that, as required by this rules and conduct, I have fully cited and referred all material and results that are not original to this work. NAME: PRIYABRATA ADHIKARY ROLL NUMBER: M6WRP14-01 THESIS TITLE: FEASIBILITY ANALYSIS OF SMALL HYDROPOWER PROJECT USING RETSCREEN DECISION SUPPORT SYSTEM: A CASE STUDY SIGNATURE: DATE:

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ACKNOWLEDGEMENT _________________________________________________________________ I express my sincere gratitude to my supervisor Dr. Pankaj Kumar Roy Associate Professor, School of Water Resources Engineering, Jadavpur University, under whose supervision and guidance this work has been carried out. It would have been impossible to carry out this thesis work with confidence without his wholehearted involvement, advice, support and constant encouragement throughout. I also express my sincere gratitude to Prof.(Dr.) Asis Mazumdar, Director, School of Water Resources Engineering, Jadavpur University; Dr. Debasri Roy, Associate Professor, School of Water Resources Engineering, Jadavpur University; Prof.(Dr.) Arunabha Mazumdar, Professor-Emeritus, School of Water Resources Engineering, Jadavpur University; Shri Subhasish Das Assistant Professor, School of Water Resources Engineering and Shri Rajib Das, Assistant Professor, School of Water Resources Engineering for their valuable suggestions. Thanks are also due to all the staffs of School of Water Resources Engineering and the Regional Centre, NAEB, Jadavpur University for their help and support. I also express my sincere gratitude to Prof.(Dr.) B. Majumdar, Power Engineering Department, Jadavpur University for his valuable guidance. Last but not the least; I am also grateful to my family for the earnest support and dedicate my M.E. thesis to them. -------------------------------- Date: May, 2014 PRIYABRATA ADHIKARY Place: S.W.R.E., Jadavpur University (Roll No. : M6WRP14-01)

ABSTRACT The assessment of Small Hydropower Project (SHPP) sites for project planning and development represents a relatively high proportion of overall cost. A high level of experience and expertise is required to accurately conduct this multidimensional assessment at both pre-feasibility and feasibility analysis stage. A variety of computer-based feasibility assessment tools (IMP-5.0, RETScreen, Hydro-Help, HOMER, iHOGA etc.) have been developed for the same. However, a reliable assessment implies physical site surveying and planning at pre-feasibility stage itself. The advent of Geographic Information System (GIS) along with these feasibility analysis software tools has been of enormous use for the feasibility analysis of any renewable energy project (including small hydropower project) at minimum time-cost-effort for making further decision. Renewable energy sources are getting much more important to replace conventional energy sources (fossil fuel) and reduce the increasing threat coming from greenhouse gases. Hence small hydropower is becoming one of the cheapest as well as most important sources of renewable energy. It is much more advantageous than medium or large hydropower projects. This thesis is based on application of one of the widely used small hydropower development decision support system tool i.e. RETScreen software. A case study is also performed to illustrate the successful use of this program for feasibility study of a small hydropower project in India at minimum time-cost-effort based on the available pre-feasibility report. Chapter-1 gives the introduction of the M.E. Thesis along with the literature review, thesis objective and scope of work. Chapter-2 discussed on the overall hydropower scenario in world as well as India along with the hydropower working principle and other basics. Chapter-3 gives the concept of small hydropower as a means of sustainable energy solution for future. Chapter-4 gives the details of pre-feasibility report of the case study project. In Chapter-5 various decision support system tools are discussed those are used world wide for small hydropower project development. Chapter-6 gives the detailed feasibility analysis for validating the pre-feasibility report of the case study project using RETScreen decision support system. Chapter-7 gives the conclusion of the RETScreen analysis. Keywords: Small Hydropower Development, Feasibility Study, RETScreen, GIS, MCDA

CONTENTS

ACKNOWLEDGEMENT.............v ABSTRACT...01 1. INTRODUCTION...04 1.1. Introduction.05 1.2. Literature Review...06 1.3. The Objective of the Study08 1.4. The Scope of the Study09 2. HYDROPOWER PROJECTS....10 2.1. History of Hydropower.11 2.2. Hydropower in the World..11 2.3. Hydropower in India..12 2.4. Hydropower in Eastern India...12 2.5. Working Principle of Hydropower Plants14 2.6. Advantage of Hydropower Plants.15 2.7. Disadvantage of Hydropower Plants..16 2.8. Hydropower Project Implementation Process...17 3. SMALL HYDROPOWER PROJECTS A NEW CONCEPT.19 3.1. Definition of Small Hydropower20 3.2. Historical Background of Small Hydropower...23 3.3. Small Hydropower in the World...23 3.4. Small Hydropower in India23 3.5. Small Hydropower in Eastern India...24 3.6. Advantages of Small Hydropower26 3.7. Disadvantages of Small Hydropower Plants.27 3.8. Small Hydro Project Development..27 4. PRE FEASIBILITY REPORT A CASE STUDY....29 4.1. Project Location..30 4.2. Project Pre feasibility Report Summary.31 4.3. Project Hydrology..33 4.4. Project Meteorological Conditions33 4.5. Project Geology..34 4.6. Project Engineering Aspects..34 4.7. Project Environmental Aspects35 4.8. Project Economic Aspects36 5. RETSCREEN-SMALL HYDRO PROJECT ANALYSIS SOFTWARE...38 5.1. Small Hydro Assessment Tools-An Overview39 5.2. RETScreen Software42

6. RETSCREEN BASED FEASIBILITY ANALYSIS (CASE STUDY PROJECT)....44 6.1. Start Sheet..45 6.2. Energy Model Sheet.46 6.3. Cost Analysis Sheet48 6.4. GHG Emission Reduction Analysis Sheet49 6.5. Financial Analysis Sheet.50 6.6. Sensitivity and Risk Analysis Sheet.51 6.7. Results & Discussion...53 6.8. Project Optimization59 7. CONCLUSION.60

CONCLUSION..60 FUTURE SCOPE..62

REFERENCES.63 ANNEXURE - I - RETScreen Small Hydro Project Analysis Formulae.66 ANNEXURE - II - Small Hydropower Development Training81 ANNEXURE - III - Small Hydropower Site Visit..82 ANNEXURE - IV - Published International Journal Papers...84 ANNEXURE - V RETScreen Analysis Worksheet.....85

CHAPTER-1 INTRODUCTION

1.1 Introduction Electricity is the only form of energy which is easy to produce, easy to transport, easy to control and easy to use. So it is mostly the terminal form of energy for transmission and distribution. Electricity consumption per capita is the index of living standard of people of a place or country. Electricity can be obtained from various sources broadly classified as non-renewable or conventional sources and renewable or non-conventional sources. Keeping in mind the limited availability of conventional sources of energy viz. coal, obtaining electricity from non-conventional sources are gaining more and more importance. Solar power, wind power, geothermal power, hydro power, tidal power are some common sources of renewable energy. Of these, hydropower is one of the most reliable and easily available forms of non conventional energy. The renewable sources are gaining more and more importance these days as they pollute the environment to a much lesser extent. A hydroelectric power plant is a renewable source of energy that does not pollute the environment. Hydroelectric power plants limit the emission of green house gases from power generation plant which is of high concern these days. As energy becomes the current catchphrase in business, industry and society, energy alternatives are becoming increasingly popular, in spite of having a high start up cost. The maintenance cost is however low.

Figure-1.1: Hydro power projects in India

Hydroelectricity exists as one option to meet the growing demand for energy and is discussed in this thesis. Numerous consideration factors exist when building a hydropower plant. Each has been measured when discussing this renewable source of energy. Availability of water, accessibility of the site, temperature conditions of the region, is some of the major parameters that are to be considered while building a hydropower plant. The cost of clean-green-friendly hydroelectricity in India is

Rs2.5/kWh (i.e. USD55/MWh approx.) which is relatively low, compared to others and thus competitive. Along with the above mentioned parameters, Environmental Impact Assessment (EIA) is another major aspect that has to be taken care of, wherein the pros and cons of setting up of a plant (or any industry), on the surrounding environment and society are to be considered. 1.2 Literature Review Lea Kosnik, (Energy Policy, Elsevier, 2010) discussed the potential for small scale hydropower to contribute to US renewable energy supplies, as well as reduce current carbon emissions, was investigated. It was discovered that thousands of viable sites capable of producing significant amounts of hydroelectric power were available through out the United States. The primary objective of his research was to determine the cost-effectiveness of developing these small scale hydropower sites. Just because as it has the necessary topographical features to allow small scale hydropower development, does not mean that it, should be pursued from a cost-benefit perspective, even if it is a renewable energy resource with minimal effect so the environment. This RETScreen based feasibility analysis finds that while the average cost of developing small scale hydropower is relatively high, there still remain hundred so sites on the low end of the cost scale that are cost-effective to develop right now.

C. Alonso-Tristn et al., (Renewable and Sustainable Energy Reviews, Elsevier, 2011) discussed a small hydropower plant in Spain in his study, from an energetic and economic perspective. The viability of the facility was examined using the freeware software RETScreen. Calculated and standard operational data were compared, thereby demonstrating the feasibility of the project from all points of view. The study highlighted the growing interest in renewable energies.

Adhikary et. al. (IJERT, 2013) compared as well as discussed the software tools for the planning and development of small hydropower projects (SHPP) applicable especially for Indian scenario. The main emphasis is on small scale hydropower resource assessment computer tools and methodologies corresponding to a preliminary or pre-feasibility and feasibility study level in India. The reviewed tools including RETScreen vary from simple initial estimates to quite sophisticated software. The integration of assessment tools into Geographic Information System (GIS) environments has helped in the strengthening of the evaluation of the water power potential in the case of the spatial variability of different factors affecting it. However, a reliable assessment of real SHPP feasibility implies some physical site surveying also, but this traditional assessment can be greatly facilitated using GIS techniques and DSS tools in India.

Table-1.a: Small Hydro power projects feasibility analysis software

L.M.K. Melvin (M.S. Thesis, Department of Mechanical & Industrial Engineering, University of Manitoba, 2004) discussed about feasibility and economic study that was conducted to observe the viability of a proposed small hydropower station at Manitoba, USA thru RETScreen.

Jeffrey Andrew Tuhtan (M.S. Thesis, Water Resources Engineering and Management Department, Universitt Stuttgart, 2007) discussed that as the world economy grows electricity demand grows along with it. In considering the possible future energy sources, hydropower provides several advantages: it is highly efficient, can be easily incorporated into multipurpose projects, has a low annual maintenance cost and a long life span. Although industrialized nations have already exploited most of their large-scale hydropower potential, there remains much room to construct large hydropower plants in the developing world. Small hydropower however, still has a place in both. The largest economic challenge facing a small hydropower project is the high initial investment cost relative to competing fossil fuel sources. The Thesis provides a new type of preliminary costing methodology which first optimizes preliminary design components thru RETScreen of a small hydropower plant based on a limited set of site-specific data and then uses stochastic simulation to determine the cost uncertainty of four costing categories and the resulting net present value (NPV) of the project.

L Olawalemi OGUNLEYE (M.E. Thesis, Potchefstroom Campus, North-West University, 2008) discussed that energy is central to economic development. It has been established that there is a clear correlation between energy consumption and living standards. Nigeria is a country of very industrious and enterprising people. However, due to non availability of adequate energy in the country, especially in the remote, off grid locations, the entrepreneurial inclination of the average Nigerian living in these locations has been largely stunted. Over the years, successive governments in the country, in realisation of the pivotal role of energy in national development, have explored various options to improve energy supply and availability, but the situation has not experienced any remarkable improvement. This has forced many businesses and households to resort to self provision through generators, often at exorbitant costs. This research work addresses the challenge of energy in remote, off grid locations by appraising the techno economic potential of renewable energy, using Obudu Ranch as a case study. This ranch is the foremost tourism resort in Nigeria, and

has played host to a number of international events over the years. Presently, electricity is being generated through the use of diesel powered generating sets. The adjoining communities are currently without electricity, although a few of the residents have acquired generators for self provision, mostly for their domestic use. Aside the high cost associated with this, the discharge of noxious contaminants into the atmosphere is undesirable. Further, the ranch was visited to establish hands-on, the existing renewable energy sources. A trade-off of these sources was carried out with reference to a number of relevant evaluation parameters to identify the most suited option for addressing the energy challenge. A comparative analysis thru RETScreen of this selected source was then made to establish its techno economic potential against the existing source of power generation- diesel powered generating sets. Conclusively, the findings and recommendations of this research effort, if well implemented, will be beneficial to the ranch, the adjoining communities and other relevant stakeholders.

Reyhan Mutlu (M.S. Thesis, The Graduate School of Natural and Applied Sciences, Middle East Technical University, 2010) discussed how hydropower helps countries to meet their energy needs in an economically, environmentally, and socially sustainable way while saving money and increasing energy security and self-reliance. Being one of the fastest developing countries, electricity demand of Turkey has been increasing and is expected to increase in the future. Untapped hydropower potential is among the prospective alternative resources to supply this demand. Developing a hydropower project requires a great deal of expertise in multiple disciplines. This study shows how RETScreen can be used in assessing the economical feasibilities of the current formulation for Niksar HEPP and its alternative schemes.

Eri A. Boye (M.S. Thesis, Department of Environmental Engineering, University of Iceland / Department of Natural Resource Sciences, University of Akureyri, 2011) discussed about how The Victoria Capitol Regional District (CRD) operates several pressure reducing facilities (PRF) as part of their potable municipal waterways. A feasibility and economic study was conducted to observe the viability of a proposed hydropower station at the Humpback PRF also thru RETScreen. 1.3 The Objective of study The use of clean energy technologies such as Small Hydropower Project - that is, energy efficient and renewable energy technologies (RET) has increased greatly over the past several decades. Technologies once considered quaint or exotic are now commercial realities, providing cost-effective alternatives to conventional, fossil fuel-based systems and their associated problems of greenhouse gas emissions, high operating costs, and local pollution. In order to benefit from these technologies, potential users, decision and policy makers, planners, project financiers, and equipment vendors must be able to quickly and easily assess whether a proposed clean energy technology project is viable. This analysis allows for the minimum investment of time-cost-effort and reveals whether a potential clean energy project is

sufficiently promising to merit further investigation or not. The RETScreen International Clean Energy Project Analysis Software is the leading tool specifically aimed at facilitating pre-feasibility and feasibility analysis of clean energy technologies. The core of the tool consists of standardised and integrated project analysis software which can be used worldwide to evaluate the energy production, life-cycle costs and greenhouse gas emission reductions for various types of proposed energy efficient and renewable energy technologies. Each model also includes integrated product, cost and weather databases and a detailed online user manual, all of which help to dramatically reduce the time and cost associated with preparing pre-feasibility studies. The RETScreen Software is perhaps the quickest and easiest tool for the estimation of the viability of a potential clean energy project. Since RETScreen International contains so much information and so many useful features, its utility extends beyond pre-feasibility and feasibility assessment. Someone with no prior knowledge in wind energy, for example, could gain a good understanding of the capabilities of the technology by reading through the RETScreen Softwares built-in Online Manual. The RETScreen Software is very flexible, letting the user focus on those aspects that are of particular interest to him or her. 1.4 The Scope of study Although there are several hydro scheme of every scale in India, it is far behind of developing the full hydropower potential. In recent years, several private companies along with governmental departments have engaged in the energy business. However, due to legislative limitations, these companies had to major on developing small hydropower which shows the importance of it. In this study it is aimed to give a general idea about the feasibility assessment of small hydropower projects in India. The (3x2MW) Malhanwa Small Hydropower site is located in Malhanwa village of Tribeniganj Block in Supaul district of Bihar which is about 20km from Pipra-Tribeniganj road. This project feasibility analysis is described here as a case study. RETScreen-Small Hydro Software is selected to manage this since it is capable of performing desired computations and developed by highly experienced group of planners and engineers for saving time-cost-effort remarkably.

CHAPTER-2 HYDROPOWER PROJECT

2.1 History of Hydropower Hydropower has been used since ancient times to grind flour and perform other tasks. In 1878 the world's first hydroelectric power scheme was developed at Cragside in Northumberland, England by William George Armstrong. It was used to power a single arc lamp in his art gallery. The old Schoelkopf Power Station No. 1 near Niagara Falls in the U.S. side began to produce electricity in 1881. The first Edison hydroelectric power plant, the Vulcan Street Plant, began operating September 30, 1882, in Appleton, Wisconsin, with an output of about 12.5 kilowatts. By 1886 there were 45 hydroelectric power plants in the U.S. and Canada. By 1889 there were 200 in the U.S. alone. By 1920 as 40% of the power produced in the United States was hydroelectric, the Federal Power Act was enacted into law. The Act created the Federal Power Commission to regulate hydroelectric power plants on federal land and water. As the power plants became larger, their associated dams developed additional purposes to include flood control, irrigation and navigation. Thus hydropower became popular world wide. 2.2 Hydropower in the World Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy, accounting for 16 percent of global electricity generation 3,427 terawatt-hours of electricity production in 2010, and is expected to increase about 3.1% each year for the next 25 years. Hydropower is produced in 150 countries, with the Asia-Pacific region generating 32 percent of global hydropower in 2010.

Table-2.a: Top 15 Hydro power projects in world

2.3 Hydropower in India India ranks 5th in terms of exploitable hydro-potential on global scenario. In 2012, India is the 7th largest producer of hydroelectric power with 114,000 GW hours. With installed capacity of 37 GW, it produces 3.3% of the world's total. The Working Group of the Planning Commission for the Twelfth Plan has estimated a total requirement of 1403 Billion Units (BU) per annum by the end of 12th Five Year Plan (201617), out of which share of hydro generation is expected to be 12%. As per Planning Commission, the capacity addition for the 12th Five Year Plan on an all-India comprises 10,897 MW for Hydro. The hydro power plants at Darjeeling and Shimsha (Shivanasamudra) were established in 1898 and 1902 respectively and are among the first in Asia.

Table-2.b: River basin wise Hydro power project capacity

India is endowed with economically exploitable and viable hydro potential assessed to be about 84,000 MW at 60% load factor. In addition, 6,780 MW in terms of installed capacity from Small, Mini, Micro and Pico Hydro schemes have been assessed. Also, 56 sites for pumped storage schemes with an aggregate installed capacity of 94,000 MW have been identified. It is the most widely used form of renewable energy. India is blessed with immense amount of hydro-electric potential and ranks 5th in terms of exploitable sex-potential on global scenario. The present installed capacity as on September 30, 2013 is approximately 39,788.40 MW which is 17.39% of total electricity generation in India. Keeping in mind the advantages and disadvantages of Hydropower plants, Indian Government has taken up certain resolutions towards the promotion of Small and Large Hydro power plants. Grants have been allotted and also provided subsidies to promote alternative sources of electricity in the country. 2.4 Hydropower in Eastern India The Northern region boasts of 15,569.75 MW of installed capacity of hydro power utilities in India making it the region with the maximum installed capacity. Here, Punjab is the State with the maximum installed capacity (constitutes 19.42% of the installed capacity in Northern Region). The Southern region ranks second in terms of installed capacity with 11,398 MW in place, followed by Western (7465.50 MW),

Eastern region (4113.12 MW) and lastly, North-Eastern region (1242 MW). In the North-Eastern region, hydro provides 42.7% of total electricity, while in the Northern region, 25.4% of electricity comes from hydro. Among the states, the two Himalayan states of Uttarakhand and Himachal Pradesh have the most hydro electric generation capacity as a percentage of total electricity produced. Our case study is from Bihar. Bihar is a state in India located towards the northern belt of India. The state has several rivers flowing through it such as Ganga, Sone, Bagmati, Kosi etc. The total area covered by the state of Bihar is 94,163 Sq.Km. the state is located between 21-58'-10" N ~ 27-31'-15" N latitude and between 83-19'-50" E ~ 88-17'-40" E longitude. Its average elevation above sea level is 53 m. Post bifurcation of Bihar, the power availability scenario in the state has worsened, as most operational power generating plants fell within the territory of Jharkhand. Bihars power system has a peak of about 1,500 MW under the currently constrained demand scenario, where electricity covers barely 50% of villages and 6% of households. Against this peak demand, the availability is only about 950 MW, leading to wide-scale rationing of power to all categories of consumers.

Table-2.c: Hydro power projects in Eastern India

2.5 Working principle of hydropower plant A generating station which utilizes the potential energy of water at high level for the generation of electrical energy is known as Hydro-electric Power Plant. This is the oldest and cheapest method of power generation utilizing the potential energy of water. It involves high capital cost due to heavy civil engineering construction. Hydroelectric power stations are designed as multipurpose projects such as flood control, irrigation and power generation. Hydroelectric power stations are of different types such as run of river, pond-age type and reservoir type.

Figure-2.1: Hydropower project scheme

The generation is pollution free and no fuel cost. The operation cost is very low as the location of these plants is on the river sites. The power is generally transmitted by long length of H.V. transmission lines. Hydroelectric power stations are generally located in hilly areas where dams can be built conveniently and large water reservoir be obtained. In a hydro electric power station, water head is created by constructing a dam across a river or lake. From the dam the water is led to a turbine. The water turbine captures the energy in the falling water and changes the hydraulic energy at the turbine shaft to mechanical energy. The turbine drives the alternator which converts mechanical energy into electrical energy. Hydroelectric power stations are becoming very popular because the fossil fuels (coal and oil) are depleting day by day. Hydroelectricity has got both advantages and disadvantages when construction, handling, using is considered. Some of the advantages and disadvantages are listed below.

2.6 Advantages of hydropower plant # Flexibility Hydropower is a flexible source of electricity since plants can be ramped up and down very quickly to adapt to changing energy demands. # Low power costs The major advantage of hydroelectricity is elimination of the cost of fuel. The cost of operating a hydroelectric plant is negligible compared to the cost of fossil fuels such as oil, natural gas or coal, and no imports are needed. Hydroelectric plants have long economic lives and some plants are still in service after 50100 years. Operating labour cost is also low, as plants are automated and have few personnel on site during normal operation. # Suitability for industrial applications While many hydroelectric projects supply to public electricity networks, some are created to serve specific industrial enterprises. # Reduced CO2 emissions Since hydroelectric dams do not burn fossil fuels, they do not directly produce carbon dioxide. While some carbon dioxide is produced during manufacture and construction of the project, this is a tiny fraction of the operating emissions of equivalent fossil-fuel electricity generation. # Other uses of the reservoir Reservoirs created by hydroelectric schemes often provide facilities for water sports, and become tourist attractions themselves. In some countries, aquaculture in reservoirs is common. Multi-use dams installed for irrigation support agriculture with a relatively constant water supply. Large hydro dams can control floods, which would otherwise affect people living downstream of the project.

2.7 Disadvantages of hydropower plant # Ecosystem damage and loss of land Large reservoirs required for the operation of hydroelectric power stations result in submersion of extensive areas upstream of the dams, destroying biologically rich and productive lowland and river valley forests and grasslands. The loss of land is often felt by the fact that reservoirs cause habitat fragmentation of surrounding areas. # Siltation and flow shortage When water flows it has the ability to transport particles heavier than itself downstream. This has a negative effect on dams and subsequently their power stations, particularly those on rivers or within catchment areas with high siltation. Siltation can fill a reservoir and reduce its capacity to control floods along with causing additional horizontal pressure on the upstream portion of the dam. Eventually, some reservoirs can become completely full of sediment and useless or over-top during a flood and fail. # Methane emissions (from reservoirs) Lower impacts are found in the tropical regions, as it has been noted that the reservoirs of power plants in tropical regions may produce substantial amounts of methane. This is due to bio-material in flooded areas decaying in an anaerobic environment, and forming methane, a potent greenhouse gas. # Relocation Another disadvantage of hydroelectric dams is the need to relocate the people living where the reservoirs are planned. # Failure risks Because large conventional dammed-hydro facilities hold back large volumes of water, a failure due to poor construction, terrorism, or other cause can be catastrophic to downriver settlements and infrastructure. Dam failures have been some of the largest man-made disasters in history. Also, good design and construction are not an adequate guarantee of safety. Comparison with other methods of power generation Hydroelectricity eliminates the flue gas emissions from fossil fuel combustion, including pollutants such as sulphur dioxide, nitric oxide, carbon dioxide, dust and mercury in the coal. Hydroelectricity also avoids the hazards of coal mining and the indirect health effects of coal emissions. Compared to nuclear power, hydroelectricity generates no nuclear waste, has none of the dangers associated with uranium mining, nor nuclear leaks. Unlike uranium, hydroelectricity is also a renewable energy source. Compared to wind farms, hydroelectricity power plants have a more predictable load factor. If the project has a storage reservoir, it can generate power when needed. Hydroelectric plants can be easily regulated to follow variations in power demand.

2.8 Steps for implementation of Renewable Energy (Hydropower) Projects Energy project proponents, investors, and financers continually grapple with questions like How accurate are the estimates of costs and energy savings or production and what are the possibilities for cost over-runs and how does the project compare financially with other competitive options? These are very difficult to answer with any degree of confidence, since whoever prepared the estimate would have been faced with various conflicting requirements. For both conventional and clean energy project implementation, the usual procedure for tackling this dilemma is to advance the project through several steps as shown in Figure. At the completion of each step, a go/no-go decision is usually made by the project proponent as to whether to proceed to the next step of the development process. High quality, but low-cost, pre-feasibility and feasibility studies are critical to helping the project proponent screen out projects that do not make financial sense, as well as to help focus development and engineering efforts prior to construction.

Figure-2.2: Hydropower project implementation process

Pre-feasibility Analysis: A quick and inexpensive initial examination, the pre-feasibility analysis determines whether the proposed project has a good chance of satisfying the proponents requirements for profitability or cost-effectiveness, and therefore merits the more serious investment of time and resources required by a feasibility analysis. It is characterized by the use of readily available site and resource data, coarse cost estimates, and simple calculations and judgements often involving rules of thumb. For large projects, such as for hydro projects, a site visit may be required. Site visits are not usually necessary for small projects involving lower capital costs. Feasibility Analysis: A more in-depth analysis of the projects prospects, the feasibility study must provide information about the physical characteristics, financial viability,

and environmental, social, or other impacts of the project, such that the proponent can come to a decision about whether or not to proceed with the project. It is characterized by the collection of refined site, resource and equipment cost data. It typically involves site visits, resource monitoring, energy audits, more detailed computer simulation, and the solicitation of price information from equipment suppliers. Engineering and Development: If, based on the feasibility study, the project proponent decides to proceed with the project, and then engineering and development will be the next step. Engineering includes the design and planning of the physical aspects of the project. Development involves the planning, arrangement, and negotiation of financial, regulatory, contractual and other non-physical aspects of the project. Some development activities, such as training, customer relations, and community consultations extend through the subsequent project stages of construction and operation. Even following significant investments in engineering and development, the project may be halted prior to construction because financing cannot be arranged, environmental approvals cannot be obtained, the pre-feasibility and feasibility studies missed important cost items, or for other reasons. Construction and Commissioning: Finally, the project is built and put into service. Certain construction activities can be started before completion of engineering and development, and the two conducted in parallel. Each step of this process could represent an increase of one order of magnitude or so in expenditures and a halving of the uncertainty in the project cost-estimate. This is illustrated in Figure for hydro projects where the level of uncertainty in estimates decreases from 50% to 0% while the energy project implementation process is progressing from the pre-feasibility to the commissioning stages. In this figure, the accuracy of project estimates is judged in comparison to the actual costs incurred in the final construction and commissioning project phase (based on empirical data for projects actually built). RETScreen Software, can be used here for quick evaluation.

Figure-2.3: Hydropower project management

CHAPTER-3 SMALL HYDROPOWER PROJECT

(A NEW CONCEPT IN SUSTAINABLE DEVELOPMENT)

3.1 Definition of Small Hydropower As the name suggests, small hydro is the smaller version of large hydro plants. According to Central Electricity Authority (CEA) of India and Bureau of Indian Standards, small hydropower stations are classified as follows: a) Depending on capacity: # Pico plant: power output capacity from 5 kw to 50 kW # Micro plant: power output capacity from 51 kw to 100 kW # Mini plant: power output capacity ranging from 101 kW to 1000 kW # Small plant: power output capacity ranging from 1001 kW to 25000 kW (or 25 MW) b) Depending on head # Ultra low head: below 3m # Low head: less than 30m # Medium head: between 30 and 75m # High head: above 75m c) Depending on project scheme # Run-of-River type projects # Canal fall type projects # Dam-Toe type projects # Pumped Storage type projects Small hydropower generation plants can be classified according to their function and based on source of water:

Run-of-river plants are those that utilize the instantaneous river flow without a dam. A weir or a barrage is constructed across the river simply to raise the water level slightly and divert water into a conductor system for power generation. Such a scheme is adopted in the case of a perennial river.

Figure-3.1: Run of River type Small Hydro Project

Canal-based small hydropower schemes are planned to generate power by utilizing the flow and fall in the canal. These schemes may be planned in the canal itself or in the by-pass channel. These are low head and high discharge schemes. These schemes are advantageous due to low gestation period, simple layout, no rehabilitation problems and no socio-environmental problems.

Figure-3.2: Canal based type Small Hydro Project In Dam-Toe type plants, head is created by raising the water level behind the dam by storing natural flow and the powerhouse is placed at the toe of the dam or along the axis of the dam on either side. The water is carried to the powerhouse through a penstock.

Figure-3.3: Dam toe type Small Hydro Project

Pumped storage is a method of keeping water in reserve for peak period power demands by pumping water that has already flowed through the turbines back up a storage pool above the power plant at a time when customer demand or tariff for energy is low, such as during the middle of the night. The water is then allowed to flow back through the turbine-generators at times when demand is high and a heavy load is placed on the system. Because pumped storage reservoirs are relatively small, construction costs are generally low compared with conventional hydropower facilities.

Figure-3.4: Pumped storage Small Hydro Project

There are two basic components in all four types of SHPP schemes; i.e., civil works (Diversion and intake, De-silting tank, Power channel, Fore-bay, Penstock, Powerhouse building, Tail race channel etc.) and electro-mechanical equipment (Valves, Hydraulic Turbine, Generator etc.). Most of the components are same in different types of schemes; some components, however, are different. The development of small hydro projects typically takes from 2 to 5 years to complete, from conception to final commissioning. This time is required to undertake studies and design work, to receive the necessary approvals and to construct the project. Once constructed, small hydro plants require little maintenance over their useful life, which can be well over 35 to 50 years. Normally, one part-time operator can easily handle operation and routine maintenance of a small hydro plant, with periodic maintenance of the larger components of a plant usually requiring help from outside contractors. The technical and financial viability of each potential small hydro project are very site specific. Power output depends on the available water (flow) and head (drop in elevation). The amount of energy that can be generated depends on the quantity of water available and the variability of flow throughout the year. The economics of a site depends on the power (capacity) and the energy that a project can produce, whether or not the energy can be sold, and the price paid for the energy. In an isolated area (off-grid and isolated-grid applications) the value of energy generated for consumption is generally significantly more than for systems that are connected to a central-grid. However, isolated areas may not be able to use all the available energy from the small hydro plant and, may be unable to use the energy when it is available because of seasonal variations in water flow and energy consumption.

3.2 Historical Background of Small Hydropower After developed countries exploited their technically available hydropower potential, the large hydro manufacturers managed to maintain their business in export markets especially in developed countries. After 1970s, crude oil prices increased because of the oil crisis and the peoples growing ecological sensitivity as well as the corresponding authoritys incentives caused small hydropower emerge as an important source of renewable energy. Attractive policies of few countries (notably Germany) have boosted the small hydro sector in recent years. 3.3 Small Hydropower in the World Access to electricity is one of the keys to development because it provides light, heat and power used in production and communication. According to the World Bank, the worlds poor people spend more than 12% of their total income on energy and around 1.7 billion people do not have access to electricity. Accepting this fact, small hydropower as a renewable energy source is suitable for rural electrification in developing countries. However, in 2004, the contribution of small hydropower, defined as hydropower projects having a capacity below 10 MW, to the worldwide electrical capacity was about 2% of the total capacity amounting to 48 GW as shown.

Table-3.a: Installed small hydro power project worldwide

3.4 Small Hydropower in India

India has an estimated small hydro power (SHPP) potential of about 15,000 MW. From 801 SHPP projects (up to 25 MW) an aggregate installed capacity of 2,953 MW has been installed by 31.01.2011. Besides these, 271 SHPP projects with an overall capacity of 914 MW are under construction. A database has been created for most potential sites by collecting information from various sources and the State Governments. The database for SHPP projects created by the Ministry of New and Renewable Energy (MNRE) now includes 5,718 potential sites with an aggregate capacity of 15,384 MW. The biggest barrier for successful implementation of small hydro projects by private

stakeholders is the long lead times. This is due to the numerous permits and clearances required for such a project. 3.5 Small Hydropower in Eastern India In eastern zone the states having small hydro potential are namely Bihar, Orissa, West Bengal and North Eastern States. As we know Bihar State Hydroelectric Power Corporation Limited (BHPC) is a company of government of Bihar and is responsible for exploring all possibilities of small hydroelectric potential and its development in the State.

Table-3.b: Installed small hydro power project Bihar (Contd.)

Table-3.b: Installed small hydro power project Bihar

3.6 Advantages of Small Hydropower # Efficient energy source It only takes a small amount of flow (as little as two gallons per minute) or a drop as low as two feet to generate electricity with micro hydro. Electricity can be delivered as far as a mile away to the location where it is being used. # Reliable electricity source Hydro produces a continuous supply of electrical energy in comparison to other small-scale renewable technologies. The peak energy season is during the winter months when large quantities of electricity are required. # No reservoir required Small hydro is considered to function as a run-of-river system, meaning that the water passing through the generator is directed back into the stream with relatively little impact on the surrounding ecology. # Cost effective energy solution Building a small-scale hydro-power system can cost from $1,000 $20,000, depending on site electricity requirements and location. Maintenance fees are relatively small in comparison to other technologies. # Power for developing countries Because of the low-cost versatility and longevity of micro hydro, developing countries can manufacture and implement the technology to help supply much needed electricity to small communities and villages. # Integrate with the local power grid If your site produces a large amount of excess energy, some power companies will buy back your electricity overflow. You also have the ability to supplement your level of micro power with intake from the power grid.

3.7 Disadvantages of Small Hydropower # Suitable site characteristics required In order to take full advantage of the electrical potential of small streams, a suitable site is needed. Factors to consider are: distance from the power source to the location where energy is required, stream size (including flow rate, output and drop), and a balance of system components inverter, batteries, controller, transmission line and pipelines. # Energy expansion not possible The size and flow of small streams may restrict future site expansion as the power demand increases. # Low-power in the summer months In many locations stream size will fluctuate seasonally. During the summer months there will likely be less flow and therefore less power output. Advanced planning and research will be needed to ensure adequate energy requirements are met. # Environmental impact The ecological impact of small-scale hydro is minimal; however the low-level environmental effects must be taken into consideration before construction begins. Stream water will be diverted away from a portion of the stream, and proper caution must be exercised to ensure there will be no damaging impact on the local ecology or civil infrastructure. 3.8 Small Hydro Project Development There are normally four phases for engineering work required to develop a small hydropower project. Note, however, that for small hydro, the engineering work is often reduced to three phases in order to reduce costs. Generally, a preliminary investigation is undertaken that combines the work involved in the first two phases described below. The work, however, is completed to a lower level of detail in order to reduce costs. While reducing the engineering work increases the risk of the project not being financially viable, this can usually be justified due to the lower costs associated with smaller projects. # Reconnaissance surveys and hydraulic studies This first phase of work frequently covers numerous sites and includes: map studies; delineation of the drainage basins; preliminary estimates of flow and floods; and a one day site visit to each site (by a design engineer and geologist or geotechnical engineer); preliminary layout; cost estimates (based on formulae or computer data); a final ranking of sites based on power potential; and an index of cost.

# Pre-feasibility study Work on the selected site or sites would include: site mapping and geological investigations (with drilling confined to areas where foundation uncertainty would have a major effect on costs); a reconnaissance for suitable borrow areas (e.g. for sand and gravel); a preliminary layout based on materials known to be available; preliminary selection of the main project characteristics (installed capacity, type of development, etc.); a cost estimate based on major quantities; the identification of possible environmental impacts; and production of a single volume report on each site. # Feasibility study Work would continue on the selected site with a major foundation investigation programme; delineation and testing of all borrow areas; estimation of diversion, design and probable maximum floods; determination of power potential for a range of dam heights and installed capacities for project optimisation; determination of the project design earthquake and the maximum credible earthquake; design of all structures in sufficient detail to obtain quantities for all items contributing more than about 10% to the cost of individual structures; determination of the dewatering sequence and project schedule; optimisation of the project layout, water levels and components; production of a detailed cost estimate; and finally, an economic and financial evaluation of the project including an assessment of the impact on the existing electrical grid along with a multi-volume comprehensive feasibility report. # System planning and project engineering This work would include studies and final design of the transmission system; integration of the transmission system; integration of the project into the power network to determine precise operating mode; production of tender drawings and specifications; analysis of bids and detailed design of the project; production of detailed construction drawings and review of manufacturers equipment drawings. However, the scope of this phase would not include site supervision or project management, since this work would form part of the project execution costs.

Figure-3.5: Small Hydro Project Implementation Phases

CHAPTER-4 PRE-FEASIBILITY REPORT

(A CASE STUDY)

4.1 Project Location Observing the map of Bihar, we find two major river flows across Bihar: river Kosi and river Ganga. We can also see that the river Kosi has two major paths as it enters Bihar. Gradually the tributaries have developed along the path. While taking into account the proposed site located on the banks of Kosi river, we assume that the river has a comparatively small catchment area (as the selected tributary is not the major path of flow of the river). Considering the above parameters, we have taken into account and analyzed the annual rainfall data of the local area (since the major inflow in the river is due to rainfall upstream). Looking at the origin of the river, in the map we find it originates from the Himalayas in Nepal, and so can be concluded that it is a snow fed Perennial River. This is very important as the project being a run of the river project, there may not be provision for any kind of water storage facility for power generation on site. The map below shows the river area network of the entire region.

Figure-4.1: (3x2MW) Small Hydro Project Site - Malhanwa, Supaul, Bihar

The (3x2MW) Malhanwa SHPP site is located in Malhanwa village of Tribeniganj Block in Supaul district of Bihar which is about 20km from Pipra-Tribeniganj road. The geographical co-ordinates of the proposed SHPP site are as under: Latitude- 2609 North Longitude- 8653 East

4.2 Pre-feasibility Report Summary

Table-4.a: Pre Feasibility Report Summary (Contd.)

Table-4.a: Pre Feasibility Report Summary

4.3 Project Hydrology The Malhanwa SHPP site falls in Kosi river basin which forms a part of the Gangetic plains and is situated in the direct path of the tropical depressions which form in the Bay of Bengal during the monsoon season and travel in a North-Westerly direction. As such 85% of the annual rainfall occurs in the monsoon period of June to October. The intensity decreases from East to West and from North to South. 4.4 Project Meteorological Conditions The Kosi river basin area falls in the North Bihar and has tropical climate. The mean annual rainfall in the upper portion of the Kosi river system is 1589mm, whereas in the lower system, the mean rainfall is 1796mm. The heaviest rainfall recorded in 24 hrs is 318.5mm. The maximum and minimum humidity vary from 76% to 65% respectively. (Source: Second Bihar State Irrigation Commissions Report page 569). In a survey carried out by various sources, it is reported by local people that Baghla Dhar flows up to full capacity during monsoon period and about half of its capacity during non monsoon period. It is estimated that it may carry about 150m/s in monsoon period (June to October) and about 75m/s during non monsoon period (Nov, Dec & May) and lean season (Jan to April) it carries about 40m/s. Analyzing rainfall data in the region, for a period of 11 years (1995-2005), the following analysis can be made for all the 12 months, for the maximum and minimum amount of rainfall, we find: # Area receives a rainfall of an average of 1796 mm rainfall. # Highest average being 2191 mm (2004) and the minimum being 1291mm (2005) # Jan-Apr, receives min rainfall- considered as lean period. # May-Oct receives max rainfall- considered as monsoon period. # Nov-Dec receives almost no rainfall at all hence considered as non-monsoon period. # Jun-Aug receives max rainfall The climate of Bihar embodies the general climatic pattern of the Indian subcontinent. It shows a continental monsoon climate due to considerable distance from the sea. The climate of Bihar is represented by the following seasons: # Cold weather season Dec to Feb # Hot weather season Mar to May # South-West monsoon Jun to Sep # Re-treating South-West monsoon Oct to Nov The onset of the rainy season takes place when a storm from the Bay of Bengal passes through Bihar. However the monsoon may set in as early as the last week of May or as late as the first or second week of July. The winter days are warm and mild but after sunset, the temperature drops abruptly, creating a sense of sharp coldness. Average

temperatures in summer ranges between 21C to 43C, and in winter the range is 6C (in some localities) to 20C. 4.5 Project Geology The project site lies in North Bihar in Kosi River Basin. The thick deposits of fine sand in the region indicate that the area belongs to the recent phase of depositional period of Himalayan Ranges. In general, the area is plain in nature. Geologically the entire area at the Malhanwa SHPP site, which falls in the Kosi belt, consists of fine sand. The soil is sandy up to a depth of 4m to 5m. Below these strata a layer of blackish soil is found. The ground water table is found at 5m to 6m depth from the surface. The project area lies is ZoneV of seismic zone as per Indian Seismic Zone Classification and earthquake considerations are to be taken into account while designing the structure. 4.6 Project Engineering Aspects Turbine and Generator It is proposed to have 3 nos tubular/bulb/kaplan turbines of 2MW capacity each for the rated discharge of 47.17m/s and a rated head of 4.7m. Three turbines will work during June to October, two will work during November, December and May and only one will work during January to April. Annual energy generated per annum works out to be 32.4 GWh. Suitable transformers shall be installed to step-up the voltage to 11kV. The other main parameters that are to be considered while designing a hydropower plant: A. Weir Malhanwa SHPP is located on Baghla Dhar, 2.0 Km upstream of road-bridge on Pipra-Tribeniganj road. The depth of rivulet at bridge site is about 5m to 6m. On left bank of rivulet there is embankment which is 3m high. As the width of bridge at the crossing is 150m. An 8m high weir is proposed to be provided 2.0Km upstream of the road-bridge on Pipra-Tribeniganj road, which can store water for power generation. The weir/barrage is located in Supaul district of Bihar. The project can be approached from Pipra-Tribeniganj road. B. Water conductor system The weir/barrage is proposed to be a concrete structure, along with suitable intake structure. The water will flow through a penstock on downstream of this intake structure. A trash rack is also proposed at the intake structure. The discharge from generating units will flow from the tail race channel and join the downstream of Baghla Dhar at a suitable location.

C. Power House The power house of the proposed SHPP will be of surface type and located by the course of stream. The generating units will be connected to step up transformers and subsequently to outdoor switchyard. a) Turbine Three tubular/ bulb/kaplan type turbines each of 2MW will be installed along with inlet valves/ gates, governing systems, drainage system and dewatering system. b) Generator Four horizontal generators each of 2.22MVA will be coupled with above turbines along with static excitation system, cooling water system, fire protection system, control panels, unit auxiliary boards. c) Generator step up transformer The output of each generator will be connected to a three phases, 2.22MVA, 3.3 /33KV generator step up transformer of ONAN type equipped with all standard auxiliaries. d) Other Auxiliaries In addition to above, other standard auxiliaries like EOT crane, ventilation and air conditioning system, DC supply system, station auxiliary supply system etc. will also be installed inside the power house. e) Switchyard The output of the generator step up transformers will be connected to 33KV bus bars in an outdoor 33KV switchyard. The switchyard shall accommodate 2 unit circuit breakers and 2 nos. 33KV outgoing circuit breakers / feeder bays. 4.7 Project Environmental Aspects The poundage formed due to raising of embankments of Baghla Dhar for the proposed Malhanwa SHPP is not expected to increase abnormally the seepage water effects in the surrounding area which is already having a network of canals associated with Kosi Barrage at Hanuman Nagar. Industry in Kosi river basin The main inhabitants in Kosi river basin are agriculturists. However, there is no agro- industry for want of power and accordingly, the electricity from the proposed Hydro-Electric Project will go a long way to develop agro-industry, to give relief to the people from the state for jobs. It will also improve law and order situation in the area.

Power Evacuation The power generated at the proposed hydro-electric project can be easily evacuated through three 33KV transmission lines, to grid sub-stations of BSEB at Pipra. Generally the state transmission utility (STU) undertakes the job of transmission in case of evacuation of power stations. Therefore this aspect has not been considered in this report. 4.8 Project Economic Aspects At the prevalent market rates the proposed Malhanwa SHPP which is of 6MW capacities is estimated to cost Rs. 8.5 crores per MW amounting to approximately Rs.51.0 Crores i.e US$ 11,333,333 (Year 2006). A summary of the cost estimate of Malhanwa SHPP including direct and indirect charges for the Project such as Pre-Feasibility, Development, Power system and Engineering - Civil / Electromechanical / Misc. works is given below: Basis of Estimates General A brief analysis of the cost estimate that was prepared in year 2006 to arrive at the capital cost of Malhanwa SHPP is provided in this section. The total cost is broadly divided under the following sections: I-Civil Works Under this heading provision has been made for various projects components as under: # Preliminary: Some funds are allotted for the purpose of conducting initial survey of the nearby area and the survey that may be required during the construction phase of the project. # Land: The cost that may be incurred during land acquisition from locals or land under submergence, structures, colonies etc. # Construction Works: This covers the cost of diversion works; barrage associated hydro mechanical equipments etc. # Power Plant Construction: This covers the cost of civil works of power house, switchyard and tailrace etc. # Building: Necessary provision has been made for residential and non residential buildings. # Miscellaneous: A provision has been kept from the total of Civil Works has been made to meet the miscellaneous expenditures like construction power arrangements etc.

# Maintenance: That may be required during the construction phases. Some communication sources may be required to be temporarily constructed/ repaired during the phase of the construction of the project. # Communication: Provision has been made to cover the cost of improvement of existing roads, construction of new roads, construction of new roads and telecommunication etc. # Environment and ecology: Provision has been made for planting new trees in lieu of trees that will be cut in submergence area and for constructions of structures, buildings etc. # Electrical works and generating plants: The cost has been taken assuming use of indigenous equipment. II-Establishment Provision for establishment has been made of I-Works minus B-Land for civil works. III-Tools and Plants This provision is distinct from that under Q-Special T&P and is meant to cover the cost of survey instruments, camp equipment and other small tools and plants. IV-Suspense No provision has been made under this head as all the outstanding suspense are expected to be cleared by adjustments to appropriate heads on completion of the project. V-Receipts & recoveries: Under this head provision has been made to cover the estimated recovery by way of release or transfer of special T&P and scrap. Exact project costing data are not public, hence a graphical representation of the overall cost estimates has been shown due to BSHPC Ltd / KIPCL privacy policy. This is an approximate cost estimate that has been obtained from reliable sources. From the graph it can be seen that the cost incurred during the construction phase is maximum. Other heads like maintenance etc are negligible when compared to the construction of the project.

Figure-4.2: (3x2MW) Small Hydro Project Cost - Malhanwa, Supaul, Bihar

CHAPTER-5 RETSCREEN INTERNATIONAL

(SMALL HYDRO ANALYSIS SOFTWARE)

5.1 Small Hydro Assessment Tools An Overview In common practice, a virtual size limit is fixed for small hydropower plants. It is usually determined by installed capacity and varies greatly from a few kilowatts to 25MW in India. Computer softwares designated for SHPP project assessment can be integrated with or without GIS. Only the latest computer-based packages have integrated GIS tools or vice versa. To assess river flow, there are two main approaches: the flow duration curve (FDC) and the simulated stream-flow (model) methods or flood frequency analysis (FFA). Computer programs intended for modelling hydro-mechanical equipment (for instance, turbines), such as Computational Fluid Dynamics (CFD); civil, geotechnical and other relevant hydropower engineering; and project cost issues including detailed design studies, are considered beyond the scope of this paper and are not discussed. In general, for the application of GIS for assessing hydropower potential, several typical components can be identified: Step-1: Gathering of river basin hydrological characteristics and associated attribute information as spatial GIS data and later using them for broad based analysis; Step-2: Development of a DEM for the river basin using a variety of primary sources as input data for GIS database development and for later use in the hydropower potential evaluation; Step-3: Development of SHPP assessment tools as specialized GIS extensions and integrating them into GIS systems; Step-4: Performance of SHPP evaluation, feasibility study and presentation of the results by GIS tools Internationally applicable softwares that can also be used for Indian SHPP planning and designing are briefly discussed below: RETScreen: This is a MS Excel based unique decision support tool developed with the contribution of numerous experts from government, industry, and academia. The software, provided free-of-charge, can be used world wide to evaluate the energy production and savings, costs, emission reductions, financial viability and risk for various types of Renewable-energy and Energy efficient Technologies (RETs). The software also includes product, project, hydrology and climate databases, a detailed online user manual, and case studies. The RETScreen Small Hydro Project Model software can be used world-wide to easily evaluate central-grid, isolated-grid and off-grid hydro projects of any SHPP size. It is applicable for India as well as other countries. Detailed description of RETScreen is given in the next section. IMP 5.0: This is a convenient tool for evaluating small-scale hydroelectric power sites. By utilizing Integrated Method for Power (IMP) combined with the relevant meteorological and topographical data, in approximately one day of in-house study, an

experienced user can evaluate all aspects of an un-gauged hydro site. This includes a power study, development of a flood frequency curve and fish habitat analysis. It is useful to non specialists exploring possibilities for small hydro development and for consulting engineers who need preliminary estimates of flood frequency and energy potential. IMP consists of: Flood Frequency Analysis Model, Watershed Model, Hydroelectric Power Simulation Model, and Fish Habitat Analysis Model. It is applicable for India as well as other countries. PEACH 2.0: This is a sophisticated program and is offered for SHPP planning and designing across the world. The program is designed to take a developer through all the necessary procedures in designing, building and commissioning a small hydro scheme and analyzing the financial returns which may be expected. It follows following steps: Site Data Definition, Project Creation, Project Design, Plant Design, Economic and Financial Analysis, Report. The output provides following details: Site, Project and Design parameter set definition; Power curve and main results; Construction costs; Bill of quantities; Cost flows - Yearly cash flow; Economic analysis Economic analysis graphic results; Financial analysis - Financial analysis graphic results. It is applicable for India as well as other countries. HydroHelp 1.2: MS Excel based HydroHelp series of programs has been developed to allow engineers to obtain an initial assessment of a hydro-electric site, with a minimum of site data. The programs are intended for use by relatively inexperienced hydro engineers, by providing an expert guide throughout the project design process. The programs do not include any hydrologic or financial analysis. There are presently 4 programs in the series, all for developments with surface power plants: HydroHelp 1.2 for turbine selection. HydroHelp 2.2 for Francis turbine project. HydroHelp 3.2 for Impulse turbine project. HydroHelp 4.2 for Kaplan turbine project. The user starts with program #1 which provides the user with the best turbine suitable for the flow, head and number of units desired in the power plant. Selection is based on more than simple suitability. The user then proceeds to the next program, #2 for Francis turbines, #3 for impulse turbines or #4 for Kaplan turbines, based on the type of unit selected in the first program. These programs guide the user through the design process as to the options available and the best choice. It is applicable for India as well as other countries. Green Kenue: This is an advanced hydrological toolkit within a GIS-enabled modeling environment and software package. The software package provides an integrated numerical modelling environment for hydrological models and 1D hydraulics and routing models. Green Kenue is based on the core Kenue, which provides one unique and shared platform and look-and-feel for purposes ranging from the development of advanced cross-field modeling environments to the design of tailored technical

decision support systems. This software can provide engineering firms with advanced tools for more precise hydrologic estimates needed to design small hydro sites. It is applicable for India as well as other countries. HOMER: It is a computer model that assists in the design of micro-power systems and facilitates the comparison of power generation technologies across a wide range of applications. HOMER models a power systems physical behaviour and its lifecycle cost, which is the total cost of installing and operating the system over its life span. HOMER allows the designer to compare many different RET design options based on their technical and economic merits. It also assists in understanding and quantifying the effects of uncertainty or changes in the inputs. HOMER can model off-grid and grid connected micro-power systems serving electric and thermal loads, and comprising any RET combination. It is applicable for India as well as other countries. iHOGA: iHOGA (improved Hybrid Optimization by Genetic Algorithms) is software developed in C++ for the simulation and optimization of Hybrid Renewable Systems including SHPP for generation of electrical energy (DC and/or AC). Optimization is achieved by minimizing total system costs throughout the whole of its useful lifespan, when those costs are referred to or updated for the initial investment (Net Present Cost, NPC). Optimization is therefore financial (mono-objective). However, the program allows for multi-objective optimization, where additional variables may also be minimized: equivalent CO2 emissions or unmet load (energy not served), as selected by the user. Since all of these variables (cost, emissions, or unmet load) are mutually counter productive in many cases, more than one solution is offered by the program, when multi-objective optimization for RET is sought. Some of these solutions show better performances when applied to emissions or unmet load, whereas other solutions are best suited for costs. It is applicable for India as well as other countries. MATLAB: Setting up and solving a large optimization problem for portfolio optimization, constrained data fitting, parameter estimation, or other applications can be a challenging task. As a result, it is common to first set up and solve a smaller, simpler version of the problem and then scale up to the large-scale problem. Working with a smaller version reduces the time that it takes to identify key relationships in the model, makes the model easier to debug, and enables you to identify an efficient solution that can be used for the large scale problem. Three techniques for finding a control strategy for optimal operation of a hydroelectric dam: using a nonlinear optimization algorithm, a nonlinear optimization algorithm with derivative functions, and quadratic programming can be achieved thru MATLAB. It is applicable for India as well as other countries.

5.2 RETScreen - Small Hydro Project Analysis Software RETScreen software runs on MS Excel environment. The software uses colour-cells to guide the user when entering data. Evaluation of a small hydropower scheme in RETScreen involves completion of many input data provided in a number of worksheets. While a different RETScreen Clean Energy Technology Model is used for each of the technologies covered by RETScreen, the same five step standard analysis procedure is common to all of them. As a result, the user who has learned how to use RETScreen with one technology should have no problem using it for another. Since the RETScreen Software is developed in Microsoft Excel, each of the five steps in the standardised analysis procedure is associated with one or more Excel worksheets. Figure presents the RETScreen Software Model Flow Charts Five Step Standard Project Analysis, which are further described below:

Figure-5.1: Steps for RETScreen Analysis

STEP 1 - Energy Model (and sub-worksheet(s)): In this worksheet, the user specifies parameters describing the location of the energy project, the type of system used in the base case, the technology for the proposed case, the loads (where applicable), and the renewable energy resource (for RETs). In turn, the RETScreen Software calculates the annual energy production or energy savings. Often a resource worksheet (such as the Solar Resource or the Hydrology and Load worksheet) or an Equipment Data worksheetor bothaccompanies the Energy Model worksheet as sub-worksheet(s). The methodology and algorithms used in the RETScreen Software for this step are described in detail in eBook. STEP 2 - Cost Analysis: In this worksheet, the user enters the initial, annual, and periodic costs for the proposed case system as well as credits for any base case costs that are avoided in the proposed case (alternatively, the user can enter the incremental costs directly). The user has the choice between performing a pre-feasibility or a feasibility study. For a Pre-feasibility analysis, less detailed and less

accurate information is typically required while for a Feasibility analysis, more detailed and more accurate information is usually required. Since the calculations performed by the RETScreen Software for this step are straightforward and relatively simple (addition and multiplication), the information found in the online manual for each input and output cell should be sufficient for a complete understanding of this worksheet. The methodology and algorithms used in the RETScreen Software for this step are described in detail in eBook. STEP 3 - Greenhouse Gas (GHG) Analysis (optional): This optional worksheet helps determine the annual reduction in the emission of greenhouse gases stemming from using the proposed technology in place of the base case technology. The user has the choice between performing a simplified, standard or custom analysis, and can also indicate if the project should be evaluated as a potential Clean Development Mechanism (CDM) project. RETScreen automatically assesses whether or not the project can be considered as a small scale CDM project to take advantage of the simplified baseline methods and other rules and procedures for small-scale CDM projects. The methodology and algorithms used in the RETScreen Software for this step are described in detail in eBook. STEP 4 - Financial Summary: In this worksheet, the user specifies financial parameters related to the avoided cost of energy, production credits, GHG emission reduction credits, incentives, inflation, discount rate, debt, and taxes. From this, RETScreen calculates a variety of financial indicators (e.g. net preset value, etc.) to evaluate the viability of the project. A cumulative cash flow graph is also included in the financial summary worksheet. The methodology and algorithms used in the RETScreen Software for this step are described in detail in eBook. STEP 5 - Sensitivity & Risk Analysis (optional): This optional worksheet assists the user in determining how uncertainty in the estimates of various key parameters may affect the financial viability of the project. The user can perform either a sensitivity analysis or a risk analysis, or both. The methodology and algorithms used in the RETScreen Software for this step are described in detail in eBook.

CHAPTER-6 RETSCREEN BASED FEASIBILITY ANALYSIS

(EVALUATION OF THE CASE STUDY PROJECT)

RETScreen based Feasibility Analysis - A Case Study Within the scope of this ME thesis, feasibility studies are completed for (3x2MW) Malhanwa Small Hydropower Project at Supaul, Bihar. The application of this tool for the proposed SHPP case study will also demonstrate its capacity to perform feasibility studies across the world. Six worksheets (attached in Annexure-V) are provided in the small hydropower project RETScreen file: # Start # Energy Model # Cost Analysis # GHG Emission Analysis (Optional) # Financial Analysis # Sensitivity Analysis and Risk Analysis (Optional) 6.1 Start Sheet

The start sheet of the RETScreen for the application of Malhanwa SHPP project is presented in Figure. Grid type can be central grid, isolated grid or off-grid. Since the electricity generated in Malhanwa SHPP is given to the BSHPC Ltd Network, hence central grid is selected. There are two analysis types. It is selected according to the extent of the available information. Method 2 requires more detailed information than Method 1 and it is preferable to use Method 2 if sufficient amount of information is available. If not, Method 1 can be selected but in this case cost analysis, emission analysis, financial and risk analyses become unavailable. For Malhanwa SHPP case, Method 2 is selected. Heating value is a measure of energy released when fuel is completely burned. For hydropower projects, this value is important only if emission analysis will be carried out. In the site reference conditions section of the start sheet, the user enters the climatic data (such as air temperature, relative humidity, wind speed, etc.) of the project area or copy them from the RETScreens climate database. These data are displayed when Show data is ticked. The climate data are essential for solar or wind power projects, but not much necessary for hydropower projects.

Figure-6.1: Project Information and Site Reference (Start Worksheet)

6.2 Energy Model Sheet The first part of the energy model sheet of RETScreen for the application of (3x2MW) Malhanwa SHPP project is presented in Figure. For the analysis type in the energy model sheet, if Method 1 is selected, a simplified analysis based on hydro turbine power capacity and capacity factor is performed. If Method 2 is selected, a more detailed analysis can be performed with the addition of hydrology and equipment parameters. For Malhanwa SHPP project, Method 2 is selected. The hydrology method depends on whether the flow duration curve for the subject river is available. If it is available, user-defined should be selected. If it is not, specific run-off can be selected and this will result in the hydrology data to be taken from RETScreen hydrology database. However, only Canada is covered in this database. Since the flow duration curve was developed for Malhanwa SHPP, the user-defined option is selected. During high flows, the tail water level may rise resulting in the decrease in gross head and thus reducing the energy production. However, this is significant for low-head sites. Since no information is available for Malhanwa SHPP, maximum tail water effect is entered as 1.0 m. Residual flow is the amount of water that should be released to the river for environmental reasons. This can be entered in the allocated cell. However, if the flow duration curve is prepared after subtracting the residual flow, this cell should be left zero. In Malhanwa SHPP flow duration curve, residual flow has not been subtracted, thus residual flow is 0.1 CuM/s.

Figure-6.2: Flow Duration Curve (Energy Model Worksheet)

Percent time firm flow available is taken as 100 % because RETScreen suggests a value between 90 % and 100 %. Turbine efficiency can be entered manually if the turbine efficiency curve is available. However, RETScreen has integrated efficiency curves for selected turbine types. Also with the efficiency adjustment, these efficiency curves can be adjusted and can be used in the sensitivity analysis. For Malhanwa SHPP Kaplan turbines (instead of Bulb turbine), standard efficiency curves of RETScreen are utilized without adjustment. The combined turbine efficiency curve generated by RETScreen is shown in Figure. Figure shows the combined efficiency curve for three turbines which are used in Malhanwa SHPP. These turbines are assumed to be identical. A single turbine is used up to its maximum flow and then the second turbine starts to operate. As can be seen in Figure, the second turbine and the third turbine start to operate

approximately at 35 % and 70 % of the rated flow, respectively. The advantage of using three turbines is that for lower discharge values, high efficiencies can be obtained. Optimization of the number of turbines and the types of them are also possible. However, in this study, the number and the type of turbines are taken the same as used in the Pre-Feasibility Report. Design coefficient is a dimensionless factor in order to adjust the turbine efficiency by taking into account varying manufacturing techniques. Typical values range from 2.8 to 6.1 and the default value is 4.5. Since no information is available for the manufacturing technique of the turbines, the default value is used in this study.

Figure-6.3: Turbine Efficiency Curve (Energy Model Worksheet)

The second part of the energy model sheet of RETScreen for the application of Malhanwa SHPP is shown in Figure. In Figure, the Flow column is where the flow duration curve is entered. RETScreen used these data together with the gross head, losses and turbine characteristics in order to calculate power capacity and electricity generated. For maximum hydraulic losses, RETScreen suggests a value 5 % to be used for most hydropower plants. The hydraulic losses occur due to friction and intakes along the conveyance system. If the conveyance system is long, hydraulic losses will be higher. RETScreen suggests 2 % for short water passages and 7 % for long water passages. The conveyance system of Malhanwa SHPP is medium. Therefore it is considered as medium and 5 % hydraulic losses value was selected. Miscellaneous losses include the transformer losses and parasitic losses. Transformers are used to match the voltages of the generator and the transmission line. Transformer losses are typically minor and can be selected as 1 % for most hydropower projects. Parasitic losses account for the portion of electricity generated that is used for auxiliary equipment, lighting, heating, etc. A value of 2 % is appropriate for most hydropower plants. Therefore, miscellaneous losses are taken as 3 % in total for Malhanwa SHPP. Availability of the power plant can also be entered by the user. The power plants can sometimes be out of order for several reasons such as maintenance or turbine failure. RETScreen suggests 96 % availability for a typical plant. However, if there are two or more turbines in a power plant, maintenances can be scheduled to low flow seasons where the flows are not enough to run all of the turbines. The idle turbines then can be taken to maintenance and the energy production continues without interruption.

Since there are three turbines in Malhanwa SHPP, availability was taken as 96 %. The generator efficiency is taken as 96.5% which is within standard range of values. Available flow adjustment factor is intended to allow the user to adjust the capacity factor and electricity exported to the grid. This factor is primarily used for sensitivity analysis in order to observe the effects of capacity factor and electricity generated on the financial summary. This factor was entered as 1.0 in this study, meaning that the flow values were not changed. Another input to be entered by the user in the energy model sheet is the electricity export rate, which is used by the software to calculate the income from electricity sale. Here we have considered $55 / MWh i.e Rs 2.5/KWh (approx).

6.3 Cost Analysis Sheet After filling the energy model sheet, the software directs the user to complete the cost analysis sheet. RETScreen offers two types of cost estimations. The first one is detailed cost estimation method. This cost estimation method is carried out in the cost analysis sheet. The user can enter the pre-calculated quantities and unit costs for specific items. This estimation method has two other sub methods in itself. The user can select one of them considering the level of detail available for cost calculation. More detailed cost estimations can be made with the second sub method. The sub method to be used is selected at the beginning of the cost analysis sheet. This is used in our study.

Figure-6.4: Project Cost Analysis Summary

The second cost estimation method offered by RETScreen is hydro formula costing method. This method is available in the tools sheet. The hydro formula costing method tool estimates the project costs using the empirical formulae derived from the costs of numerous completed small hydro projects. Hydro formula costing method uses the projects completed in Canada as the source for empirical formulae. Therefore, the cost estimations are applicable for Canada. However, RETScreen enables the user to enter the local conditions through cost ratios. These ratios should carefully be calculated since the cost estimations could vary greatly with different cost ratios. The total initial costs calculated by hydro formula costing method should be manually entered into one of the cost item listed in the cost analysis sheet. There are also annual costs. Annual costs include operation and maintenance costs, land lease and resource rental, property taxes, insurance premium, parts and labor, GHG monitoring and verification, community benefits, and general and administrative expenses. Generally 0.2 % of the total investment cost can be allocated as operation and maintenance costs. Considering the other sources of annual costs such as labor cost or insurance premium, 0.4 % of the total investment cost is used for total annual costs in this study. It should be noted that interest and depreciation costs are not accepted as annual costs by RETScreen. Periodic cost of a power plant is the renewal costs of electromechanical equipment. The total renewal cost for Malhanwa SHPP is taken as 50 % of the electromechanical equipment cost in the 35th year as suggested. 6.4 Emission Analysis Sheet RETScreen does not compute any environmental or social costs. The emission analysis sheet allows the user to compare the greenhouse gas emissions of the project with that of a conventional power plant. United Nations Environment Programme (UNEP) recognizes climate change as a major global challenge that will have significant and long lasting impacts on human well-being and development. The main drivers of climate change are anthropogenic greenhouse gas (GHG) emissions, especially CO2. GHG emissions are mainly produced by burning of fossil fuels. On the other hand, hydropower plants produce very small amount of GHGs when compared to other energy options. The source of GHG emissions in hydropower plants is the rotting of organic matter from the vegetation and soils flooded when the reservoir is first filled. By offsetting GHG emissions from gas, coal and oil fired power plant, hydropower can help slow down global warming. Studies have