2002 TCDC Training Wor kshop on Small Hydro · PDF file2002 TCDC Training Wor kshop on Small Hydro Power TCDC ... identified close to 100 small-scale hydropower project potentials

2 SHP News, Winter, 2002

2002 TCDC Training Workshop on Small Hydro Power

TCDC(Technical Co-

operation among Develop-

ing Countries) SHP Training

Workshop was closed at

Hangzhou Regional Center

for Small Hydro Power

(HRC) on 18 Nov 2002. At-

tended altogether 23 partici-

pants from 14 Asian and

Oceanic countries.HRC’s certificates were issiued

to them. With their national dresses,the international participants wereexcited and active in presenting com-ments or speeches on the SHP train-ing at HRC at the closing ceremony.Though the duration of 40 days isshort, the participants benefited muchfrom the training. The monitor of theclass, Mr.Wongsavasdi from Thai-land addressed: “We all feel to havelearnt a lot from the SHP training work-shop implemented by HRC. The sub-jects covered were just appropriatefor our countries. We’ll apply the SHPtechnology and experience we havelearnt here in China into our workback home. The kindness and hospi-tality shown by the friendly Chinesepeople were unforgettable. On behalfof all the class, I am here to say:“Thank you, HRC!” Some of the par-ticipants burst into tears when theyreluctantly left HRC for their homecountries.

During the training, the partici-pants were arranged to visit some SHPstations of various types and hydro-power equipment manufacturers.They went to Nanjing Hydraulic Re-search Institute to visit the Experi-

2002 TCDC Training Workshop on SHP

SHP News, Winter, 2002 3

ment Base which is the largest baseof the kind in East China. There, par-ticipants were very much impressedwith the detailed and vivid introduc-tion by Mr.LiuHeng, Vice Director ofNanjing Hydraulic Research Institute.In Shanghai all the participants weresurprised by the development level,vigor and by its skyscrapers of thecity. They concluded China is such adynamic country that it’d contributemore to the world peace and devel-opment.

Upon the end of training work-shop, HRC arranged a forum for theexchange of SHP experience and tech-nology. Representatives from the 14countries presented their country re-ports, introducing the experiencesand lessons learnt in the practice ofdeveloping SHP in their own coun-tries. The computer aided presenta-tions were well prepared and infor-mative, often interwoven by theheated discussions. Some presenta-tions introduced the fast develop-ment of SHP and addressed the SHPpolicies of their own countries, at-tracting the attention of many listen-ers, as the legal issues are actually avery important aspect of SHP exploi-tation.

This training workshop is spon-sored by Chinese Ministry of ForeignTrade and Economic Cooperation, asone of the technical collaborativeprojects among the develping coun-tries. All the lodging, boarding, train-ing, pocket money and the domestictransportation fees are borne by theChinese government. This is part ofthe Chinese contribution to South-South cooperation.

In 2003, HRC is planning to con-duct 2 international training work-shops on small hydro power basedon the actual need of the vast devel-oping countries. The one alreadyfixed is to be implemented from 9 Mayto 18 June 2003.



Speech at the closing ceremony of 2002TCDC SHP Training Workshop

Prof. Chen Shengshui

Director of HRC

Good morning,

Ladies & Gentlemen,

I am honored to be with you thismorning. You all came far away fromAsia, Oceania to Hangzhou! On be-half of all HRC staff, I’d like to extendmy warm welcome to you for attend-ing the 2002 TCDC SHP TrainingWorkshop.

This training workshop has beensponsored by Chinese Ministry ofForeign Trade and Economic Coop-eration, as part of China’s contribu-tion to South-South Cooperation orTCDC activities. TCDC means tech-nical cooperation among the devel-oping countries, to share the exper-tise, the facilities and the financialcost among the developing countries.

HRC has been active in promot-ing the global SHP development inthe past years and you have becomepart of this process! So far over 600international participants from nearly70 countries attended the training

ogy and equipment.SHP is a sort of renewable and

environmentally sound energy. It hasa bigger role to play if combined withenvironment improvement, poverty-alleviation, flood prevention, freshwater supply, rural irrigation, naviga-tion, fishery and tourism. Thus, moreand more countries in the world arebeginning to pay attention to har-nessing it.

We belong to the developingcountries and we share much in com-mon. There is a bright future of SHPcooperation ahead of us.

Participants, Hangzhou is a well-known city of long standing in Chinaand it served as capital of China forover 200 years in the Chinese history.With the implementation of reformand opening policy during the past20 years in China, tremendouschanges have taken place around thecity. Apart from your study of SHPtechnology to serve your own coun-try in the promotion of SHP develop-ment after going back, you’ll havechances to see and experience whatis going on in Hangzhou and in theother Chinese coastal areas.

Over one month study here atHRC is not long, however, I do hopeyou could benefit from the exchangeof SHP experience and technology,and strengthen the international co-operation of SHP among variouscountries. We share the same objec-tive: To stimulate the exploitation ofSHP which is a renewable and envi-ronmentally sound energy appropri-ate for the vast rural areas in the de-veloping countries.

Finally, I wish your study fruit-

ful and your stay pleasant!

programs that HRC conducted. OurSHP missions for SHP feasibilitystudy, design or construction super-vision have been implemented over30 countries in the world.

Early this year I have been ap-pointed by the Chinese governmentas Director of HRC and I will do mybest with my colleagues includingyou — our international friends com-mitted to promoting the SHP con-struction in the developing countries.

China is vast and rich in hydro-power resources, accounting for 680mil kW, of which 380 mil kW is theexploitable resources. The SHP ex-ploitable resource is around 87 milkW. However, the installed capacityof SHP exploited only reachedaround 30% of the total exploitableSHP resource. The three batches ofconstructing over 600 counties ofprimary rural electrification programin China have been completed. Now,Chinese government has decided toset up 400 rural electrification coun-ties during 2000 and 2005 as the fourthbatch. With the increase of SHP in-stalled capacity and the developmentof local grids, the SHP in China hasbecome a new and proven industrywith unique features. In the recentyears, the State advocates reducingthe electricity price for the rural farm-ers and reforming the electricity sup-ply as a commodity into market ori-ented operation. A series of favor-able policies that the Chinese centraland local governments adopted tostimulate the exploitation of SHPhave resulted in the large-scale SHPconstruction, rural grid improvement,SHP station technical renovation andcultivated the market of SHP technol-



MINI AND MICRO HYDRO POWER

DEVELOPMENTSArieta GonelevuSenior Scientific OfficerFiji Department of Energy

General Introduction of the

Republic of the Fiji Islands

he Republic of the Fiji Islandsis made up of more than 300

islands that is located in the SouthPacific Ocean at latitude 15o22S andlongitude 174Eo177W. The group ex-tends over a total area of about104,000 sq. km of which land occu-pies approximately 18,300 sq.km. Thetwo main islands are Viti Levu andVanua Levu accounting for 58% and34% respectively of the total landmass. The total population of Fiji is740,000 and it enjoys a tropical cli-mate with both dry and wet seasonsover certain periods in a year. Fiji’seconomy depends mainly on sugarand tourism.

The Fiji Department of Energy(FDOE) is responsible for nationalenergy policies, energy efficiencyand renewable energy development,and rural electrification. Its missionis to facilitate the development of aresource efficient, cost effective andenvironmentally sustainable energysector in Fiji.

The Fiji Electricity Authority isresponsible for the development,generation, transmission and distri-bution of electricity on the islands ofViti Levu, Vanua Levu and Ovalau.Since the commissioning of theMonasavu Hydro-electric Scheme on

Viti Levu in October 1983, 90% of Fiji’stotal electricity demand was met fromhydropower resources generationfrom the 80 MW Wailoa Power Sta-tion. Hydropower is a proven andmature form of renewable energy butits future expansion in any form willhave to take into account both envi-ronmental and social issues.

HydropowerIt has always been in the inter-

est of FDOE to promote the use ofrenewable energy resources and ex-ploit these resources to provide highquality energy. For the island popu-lations, options for electricity genera-tion will be limited to finding local is-land solutions. FDOE has, over the

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Photo 1: Vatukarasa Mini Hydro



decade, explored options for electri-fication of rural areas.

Due to its tropical climate, Fiji iswell endowed with hydropower re-sources for development of bothlarge and small-scale hydropowerprojects. FDOE’s Hydropower As-sessment Programme focuses on thefollowing objectives:

· To assess all potential mini/micro hydropower sitesthroughout Fiji and deter-mine their feasibility

· To rank all potential siteswithin Fiji which would fa-cilitate a more detailed exami-nation and subsequent de-velopment

· To ascertain the viability ofthe sites that have beenidentified and

· To prepare pre-feasibilitystudy reports for viablesites.

A countrywide study, under-taken by FDOE through ADB fund-ing, identified close to 100 small-scalehydropower project potentials. Thesesites are now being studied by FDOEto confirm their development poten-tial for meeting small electricity de-mands. Needless to say, Fiji has asignificant large-scale hydropowerresource potential. Fiji’s next bestoption for hydropower developmentis Vaturu Water Catchment Schemefo l lowed by Wain i savu levu /Wainikasou diversion. Significanthydropower development potentiallies in Fiji’s largest rivers such asSigatoka, Ba and Navua.

Based on the results of our Hy-dropower Assessment Programme,hydropower was incorporated intothe RE policy as an electrification op-tion. The most recent hydropowerproject, undertaken by FDOE, is the30 kW Muana Hydropower Schemethat was funded by the Korean Gov-

ernment through the Korean Interna-tional Cooperation Agency (KOICA),at a cost of $US200, 000. The Gov-ernment of Fiji met the local costs.The project is for the electrificationof three villages of Naqaravutu,Wailevu and Muana in the southerncoast of Vanua Levu in the NatewaBay. The three villages have approxi-mately 136 households with a popu-lation of 600. The three villages alsohost a primary school, a health cen-ter, grocery shops, community halls,etc.Developments of Mini/MicroHydropower

ydropower systems use thekinetic (motion) energy in

flowing water to produce electricityor mechanical energy. The water flowvia channel or penstock to a

waterwheel or turbine where it strikesthe buckets of the wheel, transform-ing the kinetic energy into mechani-cal energy by causing the shaft ofthe waterwheel or turbine to rotate.When generating electricity, an alter-nator or generator, which is con-nected to the rotating shaft, convertsthe mechanical power in the motionof the shaft into electrical energy. Theelectrical energy may be used directly,stored in batteries or converted fromdirect current (DC) to alternating cur-rent (AC).

Mini hydropower systems gen-erate between 100 and 1500 kW. Mi-cro hydro systems generate up to 100W. The power available in a flow ofwater depends on two factors:

· The vertical distance thewater “falls” referred to as

Photo 2: Hydro Monitoring Equipments


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head (measured in feet ormeters)

· Flow rate, which is the vol-ume of water flowing past apoint in a given time (mea-sured in cubic feet or cubicmeters per second)

Mini/micro hydropower electric-ity is an ideal energy option for therural areas because of its low opera-tional, maintenance and repair costs.It produces clean energy and also itis more secure and reliable when com-pared to other options especially forareas where transmission of gridpower is difficult.

Hydrological data have beensupplied by the PWD HydrologySection at locations where gaugingof stream flows has been carried outin the past. However, in most in-stances no previous stream gauginghas been undertaken and flows attime of site inspections were esti-mated and used in the design. Someof the sites have been examined inmore detail on the ground and ap-proximate survey checks have beenmade to check available heads, etc.for the preliminary designs of someof the schemes.

Following the filed survey, allpotential min/micro hydro sites in thecounty will be ranked to prioritize thesites for long-term hydrology (waterlevel, rainfall, flow rate, etc.) data ac-cumulation for the three-year moni-toring period.Problems associated with smallhydro development in Fiji

he Fiji Islands generally havetopographical and meteoro-

logical characteristics that present anumber of problems regarding smallhydroelectric developments. Mostparts of the islands are subject to dryseasonal periods or dry periods be-tween heavy rainfalls. With the gen-erally steep topography in areaswhere hydro sites might be expectedthere is a rapid runoff and unlessthere is a considerable ground waterfeed to the stream, discharge falls offrapidly to some base flow which maybe very limiting as far as firm powerproduction is concerned.

On the other hand all parts ofthe island are subject to occasionalvery high rainfalls and intensities,particularly during the passage oftropical cyclones near or over the is-lands, which result in very severflooding in the streams. These floodsintroduce certain problems affectingthe design, operation and mainte-nance of diversion and intake struc-tures. Although most streams con-sidered fro these small scale hydroelectric developments convey natu-rally clear water during dry weatheror even medium flows, during flooddischarges they carry a bed load ofcobbles, gravel and sand as well asfloating debris which cause potentialproblems in small intake works. Fur-thermore during high rainfall periodsmost catchments are subject to land-slips in steeper areas and this addsto debris carried down by the flood.

At all sites further survey willbe required before final design workcan commence and more accuratecost estimates derived. Likewise,more stream flow data should be gath-ered, particularly during dryer peri-ods to assess the firm energy avail-able at the individual sites.

Environmental impact as a resultof the implementation of any of theseschemes would be marginal. Al-though the sites are relatively closeto village centers, the village them-selves are remote. The aqueduct andpenstock routes have been chosento avoid unstable ground and to avoidthe occurrence of landslides, etc.Survey Procedure

hen villages request for hy-dro survey through the pro-

vincial office or to DOE, the surveyteam list the villages and undertakefield survey at the potential sites.Contents of investigation are to mea-sure the discharge at potential siteand gross head between the poten-tial site and the proposed powerhousesite –the main purpose of this part ofthe investigation is to collect the datain this dossier and data collected viathese surveys and investigations.


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Table 1. In operation, undr designing and monitoring project in Fiji

In OperationNAME PROVINCE HEAD CAPACITY INSTALLED

1 Nasdiga Taievin 30 m 4 kW 1994

2 Marist Tutu Cakaudrovs 155 m 20 kW 1975

3 Wairiki Cakaudrove 50 m 8 kW 1930/1986

4 Bukuya Ba 161 m 100 kW

5 Wainikeu Cakaudrove 122 m 800 kW 1992

6 Vatukarasea Talievu 10 m 3 kW 1993

7 Kadavu-koro Kadavu 40 m 20 kW 1994

8 Muaria Cakaudrove 40 m 30kW 1999

Village Province Head Capacity Village Province

1 Abaca Ba 81m 10kW 1 Koroboya Ba

2 Raviravi Ra 50m 7kW 2 Buca Cakaudrove

3 Nalkorokore Kadavu 74m 15kW 3 Naqarawa Namosi

Designing Monitoring

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Mr. Sithanh Vongsiry,

Mr. Khamphanh

Vanlasy

Vientiane

Lao P.D.R

Electrification of Lao P.D.RCOUNTRY PAPER

1 General Conditionopulation of Lao P.D.R is about5,5 million.

Capital city is Vientiane, which islocated in the central part of thecountry.Land area is 236,800 Sq.km, ofwhich two-thirds is mountainousarea.Our country is divided into threemajor zones, as follows:

1. Northern zone is comprised of slop-ing and mountainous land, thatvaries in altitude between 500 to2000 meters above sea level.

2. Eastern zone is the same conditionwith altitude 500 to 2000 metersabove sea level.

3. Western zone generally rangesfrom 100 – 300 meters above sealevel.

4. The Lao P.D.R has a tropical cli-mate with average temperature of26 degrees, there are two seasons:the wet and dry season.

The wet season is from May –October and the dry season is be-tween November – April, the meanannual rainfall is 1600 mm-2000 mm ormore in mountainous area, of which

75% to 90%, occurs during the wetseason.

There is abundance of water re-sources in my country. The main ba-sin of water resources in Lao P.D.Rcomes from the 17 major rivers of thecountry. They flow from north tosouth with a distance of 1870 km,traverse through country’s total landmass. Abundant rainfall combinedwith high density river system (witha total water course length of 30,000km), produces an annual runoff vol-ume discharge into the sea of 223,000million cubic meters.

From the geography and waterresources available of the Lao P.D.R,we have great potential for develop-ment of hydropower, even small, me-dium and large hydropower projects.Development of these resources cancontribute to the supplying of elec-tricity to households, offices, hospi-tals and schools in the mountainousarea. Energy is also available for agri-cultural processing such as rice mills,handicraft and cottage industries.

Most of the people in these ar-eas depend heavily on “slash andburn” for their living. As a result, the


Lao P.D.R is a land locked country in South

East Asia, between China in the north, Viet-

nam in the East, Thailand and Myanmar in

the West and with Cambodia in the South.

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natural ecology and environment isquickly destroyed. So the quantity ofwater in upland streams in dry sea-son is diminishing at a high rate. Onthe other hand during the wet sea-son, when rainfall is heavy, the landis being destroyed by soil erosionthus causing flooding in the lowlands. To solve those problems wehave to develop hydropower projectsin our country.2 Hydro-Power Development in Remote Rural Areas

t present, the main purpose ofenergy supply to the rural

people is for developing their livingstandards, like in the city areas. Theplan for supplying electricity to ruraland remote areas will be carried outby means of expanding transmissionlines from existing substations, set-ting up diesel generating plants andgenerating electricity from renewableenergy resources, for example: microhydropower. However problems en-countered in the development of thisplan could be described as follows.1. High investment cost for the ex-

pansion of transmission lines tothe scattered villages, but thepower consumption and the loadfactor of the systems are rela-tively low. This is due to the factthat electricity is mostly used fordomestic purposes.

2. Generally the investment requiredfor setting up the diesel generat-ing plants is relatively low, butbecause of the high operatingcosts including fuel and O & M,the cost of electric power produc-tion is rather high.

3. Generation of electricity from hy-dropower is very desirable be-cause hydropower is indigenous,renewable and it can be devel-oped near the area where the loaddemand is.In the past, however only a small

number of micro hydro generatingplants have been built as a result ofhigh development costs, as com-pared to the major hydro generatingplants. The power produced fromthese big projects are used mainly inthe municipality areas of towns, dis-tricts and some spots along the trans-mission line route, and some are ex-ported to the neighbouring country.

At the present it is necessary tofind a solution, which would reducethe development costs.3 National Energy Plant

s Lao.P.D.R. has plenty of re-newable energy resources

such as coal, wood, etc, recently weare highlighting hydropower as thebest option for electricity develop-ment for country with combination ofa mountainous terrain and heavy rain-fall. This will provide extensive po-tential for the generation of hydroelectricity in the country.

For the medium and large hydro-power station, at present we havea total installed capacity of 615MW.The small hydropower station inthe country has a total capacity ofabout 12 MW.The micro-hydro power station hasa capacity of 2 MW.

And the diesel generating plantshave a total capacity of about 16 MW.The total capacity of the energy plantof my country is 645 MW.4 Energy Requirement and Supply in Lao P.D.R1. Energy Requirement

In 1985 the country total energydemand 213.2 GWhThe 1990 energy required

289.4 GWhThe 1995 energy required

465.9 GWhThe year 2000 energy required

657.1 GWh2. Forecast of Energy Demand of

CountryIn the year 2005 energy demand

858.3 GWhIn the year 2010 energy demand

1,963.00 GWhIn the year 2020 energy demand

2,798.00 GWh

3. Forecast of Peak Power DemandIn the year 1995 peak power demand

128.2 MWIn the year 2000 peak power demand

216.0 MWFor in the year 2005 peak powerdemand 320.1 MWFor in the year 2010 peak powerdemand 464.2 MWFor in the year 2020 peak powerdemand 700.0 MW

4. Policy and Development Plan (forElectrification in Lao P.D.R)

The government of Lao is aim-ing to develop about 16 small hydrosites, 22 medium and 30 large hydro-power sites.

In 2001 to 2010 the governmentof Lao has projected 6 medium hydroplants as follows.1. Nam Mang-3 (2002-2004) with in-

stalled capacity 35 MW2. Xeset-2 (2003-2006) with installed

capacity 76 MW3. Xepon (2004-2006) with installed

capacity 75 MW4. Nam Ngum-5 (2005-2007) with in-

stalled capacity 100 MW5. Xeset-3 (2006-2008) with installed

capacity 20 MW6. Houay Lam Phan (2008-2010) with

installed capacity 60 MW

With the total investment cost ofabout 548.70 million USD

The hydropower resource devel-opment in Lao .P.D.R is very impor-tant for the development of the whole

country.


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S u r o s o

YAYA S A N B I N A U S A H A

LINGKUNGAN (YBUL)

JAKARTA

INDONESIA

Prospect Of Small Hydro PowerProspect Of Small Hydro PowerProspect Of Small Hydro PowerProspect Of Small Hydro PowerProspect Of Small Hydro Power

Development In IndonesiaDevelopment In IndonesiaDevelopment In IndonesiaDevelopment In IndonesiaDevelopment In IndonesiaCountry Report

1. INTRODUCTION1.1. Background

he Republic of Indonesia is theworld’s largest island nation,

with a population of more than 200 mil-lion spread over more than 17,000 is-lands (about 6,000 of which are per-manently inhabited). The nation liesastride the equator, and stretches formore than 5,000 km from the west toeast. The principal island areas of In-donesia include densely populatedJava, with 58 percent of the nation’spopulation on 7 percent of the land;Sumatra; Kalimantan sharing the is-land of Borneo with Malaysia andBrunei; Sulawesi; and Irian Jaya shar-ing the island of New Guinea withPapua New Guinea. Other islands in-clude Bali, the densely populatedtourist destination; Batam and Bintanin Riau Province near Singapore; andLombok, Sumbawa, Flores, WestTimor, Ambon, Seram, and Halmaherain the eastern provinces.

Indonesia comprises extensivecoastal plains with mountainous ter-rain inland, formed by volcanic ac-tion and tectonic uplift. Smaller is-lands have been formed by volcanicactivity, coral growth and uplift. Theclimate is tropical, with hot and hu-mid weather year round. Temperaturedecreases with elevation in the moun-tains. Rainfall is heavy in most areas,with seasonal patterns influenced bymonsoon winds from Australia andthe Indian Ocean. Precipitation gen-erally increases with elevation, andis heaviest in most parts of Indone-sia from December to March.

The collapse of the Rupiah inlate 1997 and early 1998 caused

Indonesia’s GDP to contract by 14%in 1998 as a result of Indonesian firms’reliance on short-term dollar-denomi-nated debt and high levels of non-performing loans in the banking sec-tor. The Indonesian government iscommitted to implementing an exten-sive series of reforms and a bank capi-talization program, but progress hasbeen slow, leading to further lossesin investor confidence and outflowsof capital. Inflation, which peaked at77% per annum, is now significantlylower. Signs of slow economic recov-ery are now appearing. To date, how-ever, political uncertainty continuesin Indonesia, corruption is still ram-pant and the banking system remainsin tatters, with defaulted loans total-ing many billions of US Dollars to berestructured and new credit still al-most unavailable.1.2. Electric Power Sector Characteristics

he electrical power sector in In-donesia is dominated by the

government-owned electric companyPT. PLN (Persero). Another importantissue to be discussed is how this mo-nopoly will affect the deployment ofrenewable energy resources in bulkpower markets. There is a need, forexample, for regulation of retail elec-tricity. Suppliers should create eco-nomic incentives that promote fullconsideration of renewable technolo-gies for bulk power, distributed gen-eration, and demand-side applica-tions. On the other hand, wholesalecompetition is not likely to favor re-newable energy in bulk power mar-kets. Compared with long-term bilat-eral power purchase agreements,


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short-term or spot markets make itmore difficult to finance and developrenewable generation options.

At present, the electric power sec-tor in Indonesia is heavily subsidized.The subsidies on energy were origi-nally established as part of a socialdevelopment policy. The monetarycrisis in 1997/98, however, completelyunbalanced this system of subsidies:while the retail electricity selling tar-iffs could only be raised marginally dueto the difficult political situation in thecountry, the power production costincreased tremendously. One reasonis that PLN had signed power pur-chase agreements with 27 Indepen-dent Power Producers (IPPs), underwhich it had agreed to pay for powersupplies in US Dollars.

The sharp drop of the Indone-sian Rupiah against the US Dollar hasrendered PLN unable to meet the fi-nancial obligations to the IPPs and,as such, it is now seeking to renego-tiate the contract terms. Another rea-son is that PLN has to purchase thegas for its power plants, as well asmost spare parts at world marketprices in US Dollars.

This has left PLN in a highly un-comfortable situation with huge for-eign debts and unable to serve itsloans in US Dollars on one hand, andlegal suits by a number of IPPs andlenders on the other hand. The on-going restructuring process withinPLN, and the uncertainty regardingits ownership (governmental or pri-vate) further complicate PLN’s situa-tion. As a result, PLN is currentlyunable to implement new projectsand to add to its power generatingcapacity.

As of March 2001 the state com-pany PLN had identified 29 criticalareas prone to rotating power cutsdue to a lack in generating power.PLN is currently unable to add to itspower generating capacity due to its

financial constraints. The lingeringdisputes between PLN and the IPPsover contracts have damaged thebankability of the state company inthe eyes of the world’s financial com-munity and made it almost impossiblefor PLN to raise offshore financingfor its investments.1.3. Rural Electrification

ndonesia has been committedto rural electrification for many

years. Into the 1990’s, PLN main-tained an aggressive campaign to ex-tend its main grids and to establishsmall grids in isolated areas to servean increasing percentage of the popu-lation.

Progress in electrification is re-ported on a village basis. As ofMarch 2001, about 79 percent of vil-lages had been electrified. The ruralhousehold electrification percentageon the other hand is only 41 percent.These figures indicate that, althoughPLN has achieved a fairly high vil-lage electrification rate, a large num-ber of households still remain with-out electricity supply. This is mainlydue to the large distance of manyhouses from the main line and the lackof funds by PLN to expand their dis-tribution lines within each villagesystem.

The PLN grid extension programhas become increasingly costly as aresult of: 1) the increasing cost percustomer for transmission and distri-bution as more remote areas are elec-trified; 2) the high cost of supplyingfuel to diesel generators serving iso-lated small grids; 3) the small amountof electricity consumed by custom-ers in rural areas and the subsidizedrates, making recovery of capital ex-penses using the traditional electrifi-cation model very difficult.As of March 2001, the total numberof villages still not connected to aPLN grid was more than 10’000, withan estimated 20 million people. As a

result of the continuing economic cri-sis and PLN’s financial collapse, thegovernment has now been forced toreduce annual expenditure in the vil-lage electrification program.1.4. Privatization

he current centrally planned,state-owned electric power

system will gradually give way to pri-vately owned and managed genera-tion, transmission and distributioncompanies. These changes are in-tended to reduce public debt, en-hance accountability, and improveconsumer service. Privatization isunlikely by itself to increase the mar-ket share of renewable energy.Privatization can promote renewableenergy by introducing new capital.On the other hand, higher discountrates and short time horizons of pri-vate investments may favor non-re-newable energy-based business en-deavors.1.5. Power and Energy Cost Structure

t present, the price of electric-ity to end-users (retail tariff) is

heavily subsidized in Indonesia. Theaverage long-run marginal cost(LRMC) of electricity supplied to thecostumers by PLN for productioncost is estimated at IDR 600 (USD0.060) per kilowatt-hour (kWh). At thesame time, the national selling pricefor power averages at IDR 350 (USD0.035) per kWh. Retail tariffs are uni-form throughout Indonesia, withoutregard to the variation in costs ofgeneration, transmission, and distri-bution in different regions.

PLN currently purchases excesspower from captive or communitypower plants on a case-to-case basisat up to 80% of the retail electricitytariff. Being aware of its inability toincrease its production capacity andmeet the growing demand, PLN cur-rently also shows interest to purchaseelectrical power from IPPs. The pur-


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chase tariff offered, however, is nottaking into consideration the reallong-term production cost of PLN’sown generation in the respective area,and currently is far too low to be at-tractive for IPPs.1.6 Hydropower Resources

ydro power potential in Indo-nesia is 75.000 MW, potential

for small hydro power is 7,500 MW(10%) and 200 MW has been devel-oped. Small hydro potentials is dis-tributed around the islands, can bedevelop as Local Energy Resourcesespecially in remote areas for RuralIndependent Power Supply. Severalsmall hydropower projects have al-ready been identified in the country.

A study of JICA conducted inthe early nineties has identifiedaround 10 small-scaled hydropowerprojects for the Ministry of Coopera-tives.

PLN mini-hydro has identifiedand studied 75 mini-hydro projects(generally smaller than 1,000 kW), andconstructed a small number.

Generating equipment suppliershave identified at least 40 projects forcaptive users.

1.7 Previous and Ongoing Develop-ment Efforts

n the past, numerous effortshave been made by both the

Indonesian government and coopera-tives to generate electricity usingsmall-scale hydropower technolo-gies, but the results are still minimal.The Department of Public Works, Di-rectorate General for Water Re-sources Development, has been in-cluding micro-hydro in its projects fora number of years, whenever flow andhead conditions are favorable. Unfor-tunately, these limited attempts to ex-ploit Indonesia’s vast hydropowerpotential have almost come to a com-

plete halt, after the rural developmentprograms had to be suspended in theface of the country’s severe economicand financial crisis.

1.8 Models for Hydropower Devel-opment

hree models for hydropowerdevelopment: captive power

plants, small plants that sell power tothe PLN grid, and isolated plants op-erated by community groups for ru-ral electrification. It will broaden thenation’s awareness of the benefits ofsmaller hydro developments, and willmobilize and enhance Indonesian re-sources so that hydro developmentbecomes a viable, long-term alterna-tive to fossil fuels for electric genera-tion.

2. BARRIERS TO SHP

DEVELOPMENT

ith its mostly hilly terrains andhigh precipitations distributed

over a large part of the year, Indone-sia is blessed with an abundant po-tential for small-scale hydropower de-velopment. Due to various reasons,however, this potential remains stilllargely untapped. Based on experi-ence gained in previous attempts toexploit this potential, the commonbarriers to sustainable small-scale hy-dropower development.

2.1. Structural and policy-relatedbarriers

urrently, one of the most impor-tant common barriers to broader

small-scale hydropower developmentin Indonesia is the tariff structure inthe energy sector. The actual electric-ity retail sales tariffs – which are fixedbelow production cost and thus areheavily subsidized – make it very dif-ficult to develop hydropower projectson a purely commercial basis in areasthat are already reached by the PLN

grid. In remote and isolated regions,due to the also subsidized price fordiesel fuel, diesel generators oftenappear economically and financiallymore attractive than hydropowerschemes that normally do not benefitfrom any subsidies.

Legal, policy, and financial con-ditions currently are perceived asnegative for projects touching on PLNin any way. Information needed tomake rational business decisions inthe power sector is often unavailable,due to a lack of transparency regard-ing procedures at PLN, DGEEU1 , andPertamina, the state oil and gas com-pany. Development planning informa-tion has been closely held, and de-tailed financial information (includingcost of production in different areasand at specific plants) is unavailable.

There are no standardized pro-cedures and technical codes and stan-dards existing for renewable energydevelopment in general, and for small-scale hydropower development inparticular.

Lengthy and not standardizedprocedures to obtain power purchaseagreements, as well as a lack of tech-nical support impede inter-connec-tion of small-scale hydropowerschemes with the PLN grid, fre-quently cause project failure.

Imported equipment for hydro-power schemes is expensive, andspare parts are often difficult to ob-tain. This situation has been accen-tuated by the monetary crisis and theresulting devaluation of the Indone-sian Rupiah, generally disfavoringany imports.

A consistent and transparentgovernment policy supporting renew-able energy development is stillgreatly lacking. As opposed to otherrural electrification options, such asgrid extension or diesel generators,there are no subsidies, nor any other


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financial incentives supporting re-newable energy development. Thereis also no target set by the govern-ment regarding the share of renew-able energy in the country’s overallenergy mix.

Development plans (such asplans for extension of electric linesinto new areas) are not coordinatedamong PLN, local governments, lo-cal residents and cooperatives, othergovernment companies and agencies,and private businesses. Political andoutside business motives are oftensuspected to play a role in develop-ment decisions.

There is often a lack of produc-tive end-uses for power in rural ar-eas. As a consequence, load factorsof small-scale hydropower schemesoften are low, with demand peakingduring only a few hours in theevening. The revenues from electric-ity sales of such schemes often arenot sufficient to cover overall produc-tion cost.

2.2. Barriers related to technical andinstitutional capacities

takeholder involvement is of-ten neglected during project

selection, planning, and implementa-tion. Active stakeholder participationis especially important for commu-nity-based systems, where the stake-holders will be managing and payingfor a project upon completion. Ifstakeholder involvement is ne-glected, the project acceptance andsense of ownership by the stakehold-ers is often low, resulting in shortproject lifetime.

The quality of project selectionand evaluation studies is in manycases insufficient.

Pre-investment financial evalu-ations are often poor quality or arelacking altogether. Many business-men and other potential developersare not familiar with the advantages

and importance of preparing goodbusiness plans, as well as cash flowand cost benefit analyses.

Technical problems, resultingfrom poor design and constructionquality (civil, mechanical, and electri-cal), are common with many small-scale hydropower schemes, andmostly have the same effects as de-scribed in the previous paragraph.

Local equipment design andmanufacturing capability is limited,and is mostly concentrated on Java.

There are no mechanisms inplace (e.g. product liability, qualityassurance, technical control institu-tion) that warrant the quality of small-scale hydropower development.

Plant operation and maintenanceis often haphazard, with little preven-tative maintenance. The result are fre-quent and often long-lasting poweroutages, which in the case of isolatedplants require the customers to pos-sess redundant equipment for light-ing, cooking, etc. This hampers thetrust in the technology in general, aswell as the willingness to pay for theelectricity supplied by such schemes.

Project development organiza-tions often have a poor financialrecord keeping and revenue collec-tion. The consequence is in manycases the inability to recover invest-ment and production cost, leading topoor project performance and hinder-ing replication.

Project owners often lack inmanagerial and organizational capaci-ties required to sustainable operate amini or micro hydropower scheme.

2.3. Barriers related to financingmechanisms

inancing for small-scale hydro-power development is unavail-

able or difficult to locate. Prior to thefinancial crisis, banks were not lend-ing for hydro or other renewable en-ergy projects, because they were not

familiar with the technology, and be-cause the returns did not appear tobe as high as for other investments.Currently, Indonesian and interna-tional banks are usually not willingor able to lend for any type of project.

Private energy suppliers facehigher interest rates than governmententities, and will prefer conventionalenergy options with lower capitalcosts, shorter payback periods andlower up-front investment cost.

There is a lack of micro-creditsfor the rural population to purchaseelectric appliances other than forlighting and thus to invest in produc-tive activities based on electricityend-use.

2.4. Barriers related to awarenessand information

any institutions and deci-sion-makers are not aware of

the possibilities for small-scale hydro-power development. The result is of-ten that conventional energy optionsare preferred, where the potential forhydropower would be promising.

Regional government involve-ment in development decisions isbecoming increasingly important asincreased local autonomy is imple-mented. Up to date, however, there islittle understanding of the electricbusiness at that level.

There is no center or network ex-isting that collects and disseminatesinformation on all aspects of small-scale hydropower development. Thelack of broadly available informationon past experience with hydropowerdevelopment – for example in the formof lessons learnt and best practices –often results in the repetition of thesame mistakes and shortfalls in theefforts to implement projects.

Basic data needed for projectevaluation (maps, surveys, hydrol-ogy, geology) is often missing or dif-ficult to obtain, especially for more


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remote regions.A frequently updated and eas-

ily accessible inventory with potentialsmall-scale hydropower sites is cur-rently still inexistent. Potential projectdevelopers therefore often have to takea lengthy way through many institu-tions to identify hydropower invest-ment opportunities. At the same time,attractive sites may remain undevel-oped, because they are not known topotential project developers.

The public awareness on the im-plications of global warming in thatevery country is responsible to re-duce its CO

2 emissions and the rapid

depletion of the country’s fossil fuelresources, as well as the importanceof the development of renewable en-ergy resources on the other hand isstill greatly lacking.

Many of the barriers mentionedabove not only impede small-scalehydropower, but renewable energydevelopment in general.

3. SOLUTIONS

he barriers to sustainable SmallHydro Power development in

Indonesia will be addressed with anumber of activities, that are expectedto solutions in the following main ac-tivities.3.1 Policy support and energy sector restructuring

eview of existing policy, legis-lation and regulatory frame-

work in the renewable energy sectorin Indonesia, with focus on small-scale hydropower;

Provision of advice to govern-mental institutions concerned onpolicy, legislation and regulatory issuesthat affect renewable energy develop-ment in general, and small-scale hydro-power development in particular;

Initiation and provision of sup-port to attempts to level the playingfield for renewable energy develop-ment in general, and small-scale hy-

dropower development in particular,in the course of the restructuring ofthe Indonesian energy sector;

Development and introductionof technical standards, guide specifi-cations, and guidelines for planning,design, and construction supervisionof small-scale hydropower projects;

Design and promotion of the in-troduction of a standardized powerpurchase agreement for the inter-con-nection of small-scale hydropowerschemes with the PLN grid.3.2 Technical and institutional capacity building

evelopment and implementa-tion of special business man-

agement training programs for small-scale hydropower project develop-ment organizations, owners and op-erators, to improve their managerialcapabilities, especially with respectto financial administration;

Design and implementation oftechnical training and capacity build-ing programs, covering topics suchas project selection, evaluation, plan-ning and designing, construction,operation and maintenance, as wellas electrical distribution, metering,and structure wiring to increase thequality and sustainability of small-scale hydropower installations;

Conduct of on-the-job-trainingof local hydropower equipment de-signers and manufacturers, to furtherreduce the dependence of small-scalehydropower developments on equip-ment imports;

Promotion of the structuring offormal regional “business incuba-tors”, where continuing technical andmanagement advice and assistancecan be provided to project develop-ers. One target of such incubatorswould be entrepreneurs interested informing operation and maintenance(O&M) contractors or project man-agement contractors, which couldprovide services to several plants lo-

cated in certain regions. Such orga-nizations could provide a higher levelof expertise than would be affordablefor single-project O&M and manage-ment staffing.

Design and promotion of local,village-based implementation ar-rangements and organizationalmechanisms for effective local partici-pation in developing and operatingoff-grid hydropower systems;

Design and promotion of theimplementation of incentive-based ar-rangements to encourage goodO&M, and revenue collection; and

Formulation and promotion ofprivate/community cost sharing mod-els to be applied at all stages of thedevelopment and operation of small-scale hydropower projects.3.3 Facilitating financing of small hydropower projects

esign and establishment of ap-propriate and sustainable fi-

nancing mechanisms for small-scalehydropower projects, based on ananalysis of requirements and formsof financial intermediaries available;

Establishment of a special “re-volving fund” for small-scale hydro-power development for off-grid ruralelectrification. This revolving fundwill grant loans for the implementa-t ion of se lec ted hydropowerschemes, and will continuously berefilled by the installment paymentsof the loans. It is clear, however, thatas long as Indonesia’s energy sectoris heavily subsidized, some form ofsubsidies will also be required forhydropower development to level theplaying field with conventional en-ergy options. Different models will bedevised and proposed for testing,such as a replenishment of the revolv-ing fund by governmental subsidiesthat are based on the amount of elec-tricity actually produced by theschemes implemented with loans outof the revolving fund.


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Djouraboi Djouraev

Barki Tojik Company

Tajikistan

HYDRO POWER DEVELOPMENT

IN TAJIKISTAN

1. Brief introduction of Tajikistanajikistan is locating in CentralAsia, western of China, and

borders with Afghanistan, China,Kyrgyz Republic and Uzbekistan. Tajikistan is a mountain country(about 93% of territory are moun-tains), filled by Tian-Shan Alay andPamir mountain systems. The terri-tory of Tajikistan covers 143.1 sq. ki-lometers and the population exceeds6.2 mill., capital city – Dushanbe. The republic boasts hundreds oflarge industries. Rapidly developingindustries: including power engineer-ing, mining and ore- dressing, chemi-cal, nonferrous metallurgy, mechani-cal engineering, light, foodstuffs, etc. Tajikistan is richly endowed withhigh-water and rapid rivers whosepotential is widely used for powergeneration and irrigation of farmlands. Most of the rivers drain intothe Aral Sea Basin, the largestcourses being those of the AmuDarya, the Kafirnigan, the Panj, theSyr Darya, the Vakhsh and theZarafshan rivers- all fed by the melt-ing mountain snows and glaciers.The Panj, one of the main streams ofthe republic, runs for 921 kilometresalong the national border. Thechief water artery of Tajikistan, theVakhsh is 525 kilometres long. The hydropower is the main do-mestic (80%) source of power inTajikistan. In terms of its potentialwater power resources, which amountto 32.3 million kW (output capacity)or 286 billion kWh (electricity gen-eration), out of which 19 million kW

and 144 billion kWh can be producedtechnically. The republic ranks sec-ond in the former Soviet Union afterthe Russian Federation. The economic effectives 85 bil-lion kWh. At present used only 17%the economic effectives power re-sources. Besides the largest riversTajikistan have considerable plentyof the small rivers of its potentialwater power resources could prod-uct energy 14 billion KWh.2. The power industry: stages of development

he construction (in 1936 to1952) of the three Varzob hy-

droelectric station with a capacity25 MW marked the first major stepin promoting the power industry ofthe republic. By the same year, the first 35 kVtransmission line was built connect-ing the station 1 with the Glovnaya(Chief) substation in Dushanbe. Thecompletion of the line started thebeginning of the power grid of therepublic. Before the construction of cas-cade Varzob hydroelectric stationtotal installed capacity electric sta-tion in Tajikistan was to 690 kW. With the aim of accelerating elec-trification in the processing agricul-ture, government was built manyprojects of Small Hydro power plantsof country. The finally in 1950 wasbuilt about 100 Small Hydro Powerplants with the installed capacityamounted to 95000 kW. After the year 1960, of the coun-


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try started to development the largehydro power plants, the small hydropower plants stopped to run becausethe large power plants more eco-nomic development than the smallhydro power plants. In 1957 became operational theKayrakkum hydroelectric station onthe Syr Darya , with a 126 MW ca-pacity. The latter, with its active stor-age amounting to 2.6 billion cubicmeters, made an important contribu-tion to the development of powerindustry and irrigated farming in thein the republic. Three more hydroelectric stationswith an installed aggregate capacityof 258 MW were built in the south-ern part of the republic from 1957 to1965. The first of the three stations,the Perepadnaya hydroelectric sta-tion, with a capacity of 30 MW, be-came operational in 1958, marking thebeginning of efforts aimed at har-nessing the water power resourcesof the Vakhsh river. The then largesthydroelectric station, the Golovnayastation, was commissioned on theVakhsh in 1962- 1963. It has an in-stalled capacity of 210 MW. In 1964the Central hydroelectric station wasbuil t on the tai l race of thePerepadnaya station, with 18 MWcapacity. The development efforts, how-ever, were not limited to the construc-tion and expansion of power plants;much emphasis was laid on transmis-sion lines and substations all overTajikistan. The first, 110 kV, trans-mission line was built there in 1948. Transmission lines and substationof 220 kV and higher voltage classeshave been built since 1958. Tajikistan was one of the fist tointroduce cable-suspended wires onthe 110 kV mountain transmission linein the Varzob valley. The network of transmission linesin the republic is such that we can

now speak about the existence of twopower grids in Tajikistan which areconventionally called the southernand northern grids, the watershedbeing the Gissar Range. The then largest hydroelectricstation, the Nurek station, was com-missioned on the Vakhsh in 1979. Ithas an installed capacity of 2700 MW,average annual production – 11,2billion kWh, with its active storageamounting to 4,5 billion cubic meters. More than forty ethnic groupsparticipated in the construction ofthe power station. This chain includes the function-ing Baipaza hydroelectric station. Ithas an installed capacity of 600 MW. In the 1985 Government was planto development electrification to re-mote and mountains Area with thelocal resources. By small hydro powerand another renewable energy plants. After 10 years on small hydropower plants the country was com-pleted with the total installed capac-ity – 15.400 kW could provide. The present, republic has 17 thesmall hydro power plants, with theinstalled capacity 31.400 kW withannually energy supply 130 GWh. The developing small hydropower plants in the country were veryusefully and effectively for develop-ing Social-Economic condition inmountainous area. The installed capacity of powergenerating facilities in the republicamounted to 4.412 thousand MW in2001, producing 14.336 billion kWhof electricity, and over 98% out ofthat is produced by hydropower sta-tion. The energy system of Tajikistanis a part of the Central Asia /South-ern Kazakstan regional network andis designed for 500 kV and is coordi-nated from the dispatcher center inTashkent.

2. Perspective of development. Further development of the powerindustry in the republic relies heavilyon its abundant water power re-sources. The hydroelectric power industryof Tajikistan, which depends on theoperation of the Vakhsh chain ofpower stations, is inseparably linkedwith irrigation of new farm lands inthe south of the republic, Uzbekistan,and Turkmenia. Therefore, the Rogun(3600 MW) and Sangtuda (670 MW)hydroelectric stations, which are cur-rently under construction, have tre-mendous importance for entire Cen-tral Asia. The Sangtuda hydroelec-tric station will be followed by theconstruction of the Shurab, andDashtijum plants. The Gorno-Badakhshan Autono-mous Region occupies an exceptionalplace in the republic. Here, high inthe mountains, all the main rivers ofTajikistan originate. It is feasible toconstruct here a hydroelectric stationwith a capacity up to 100.000 kW,since the geography of the regionprevents their interconnection withthe national grid. In 1997 Government has ap-pointed the small hydro power As-sociation of country, which looks anddevelops :- the small hydro power plant ofcountry;- the main thing of this Associa-tion works on investigation, design,construction and exploitation of theprojects;- the association supply technicalsupport and equipment for the smallhydro power plants on country.

All of problem in mountainousArea of country should solve andapprove on the real constructingprogram with small hydro powerproject for developing mountainous

Area in future time.



ponsored by the UN and Chi-nese government, Hangzhou

Regional Center for SHP (HRC) aimsat promoting the SHP developmentin the world. China has most SHP sta-tions and has gained much experiencein SHP development. In order to dis-seminate SHP technology, HRC hasalready held with success 36 trainingworkshops for over 600 participantsfrom 70 countries.1.Objectives: To master the basictheory and principles of SHP devel-opment, feasibility study, operation,maintenance etc..2.Date:From 9 May to 18 June 2003,Hangzhou, P.R. China.3.Venue:Hangzhou Regional Centerfor SHP, Hagnzhou, China.4.Course Contents: Procedures ofSHP development, feasibility study,hydrological analysis, low-cost civilstructure, turbo-generator units andauxiliary, electric design, automation,economic evaluation, operation, main-tenance.5.Training Methods:Lectures, dis-cussions, field trips & seminar.6. Medium of Instruction:English7.Source of Trainees:SHP personnelor officials worldwide

8.Methods for Evaluation: presentingcountry report on SHP9.Participant’s Qualifications andRequirements for Admission:Theapplicants should be under 45 yearsold, graduated from technical schoolswith two years’ SHP practice, be ingood health with no infectious dis-eases and not handicapped, be profi-cient in English; prepare a review pa-per or report on SHP development ofthe participants’ country, not to bringfamily members to the training course,to observe all the laws, rules and regu-lations of P.R. China and respect theChinese customs.10.Training Expenses:The expensesof training, boarding and lodging, lo-cal transportation, pocket money ofRMB 30 Yuan per person per dayduring the training period in Chinawill be borne by the Chinese govern-ment and distributed by HRC. Theinternational travel costs includinground trip tickets, transit fares, theexpenses of medical care, insurancefor the participants are covered bythe participants themselves.11.Application and Admission: Nomi-nated by their respective governments,applicants are requested to fill up the

Application Forms, which should beendorsed by the departments con-cerned of their respective governments,and submit with valid Health Certificateprovided by authorized physicians orhospitals to the Economicand Commer-cial coun-sellor’s Office of Chinese Em-bassy (ECCOCE) for examination andendorsement; If endorsed, AdmissionNotices will be issued to the acceptedparticipants by ECCOCE through therelated government departments. WithAdmission Notices, participantsshould go through all necessary for-malities with all the mentioned docu-ments to China on the registration date.12.Insurance:The training course or-ganizer dose not hold any responsi-bility for such risks as loss of life,accidents, illness, loss of propertyincurred by the participants duringthe training period.13.Liaison Address:Attn:Mr.D.Pan& Ms. Shen XuequnHangzhou Regional Center (Asia-Pacific) for Small Hydro powerHangzhou, P.R. China, 310012;Phone:0086 571 88086586Fax:0086 571 88062934E-Mail:hrc@mail. hz.zj.cnWeb Site:www.hrcshp.org

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SHP in China

ENROLMENT INFORMATION2003 TCDC Training Course on Small Hydro Power

ENROLMENT INFORMATION2003 TCDC Training Course on Small Hydro Power


SHP in ChinaSHP in China

A Chinese Magazine“Small Hydropower” by HRC

he Chinese “Small Hydro-power”, a magazine that Na-

tional Research Institute for RuralElectr i f icat ion (NRIRE) andHangzhou Regional Centre (Asia-Pa-cific) for Small Hydro Power has ed-ited and published for 105 issues (bi-monthly), allocated with the Interna-tional Standard Serial Number ISSN1007-7642, and China Standard Se-rial Number CN33-1204/TV. It waspublished in Chinese and with En-glish titles. Special features are tech-nical experience of SHP development

in China. Information of internationalSHP activities and important eventsin the field of SHP have also beenwidely included.

This magazine has carried news,views and articles on all aspects ofsmall hydro power. It is useful to thosewho are intersted in technical experi-ence of SHP development in China.

“Small Hydropower” is the onlyprofessional publication on small hy-dropower in China, which is issueddomestically and abroad. It is widelycircled in all corners of China concern-

ing SHP, and getting more and morepopular in over 600 rural countieswhich is primarily hydro-electrified,more than 2,300 counties with hydro-power resources, more than 50,000small-sized hydropower stations,thousands of colleges or universities,research institutes and other admin-istrative authorities on SHP. Adver-tising is welcome for any equipmentmanufacturer to target Chinese mar-ket on SHP construction, equipmentpurchasing or other businesses.Subscription rates (1 year):USD40.00

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The main contents of the 105th issue (2002 No 3) read as follow.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Working ResearchDevelopment of rural electrification for thriving and prospering western seacoastof the Taiwan StraitsUnite efforts for rural electrification of Jiangxi provinceAchievement and prospect of rural electrification of Xinjiang Uygur ZizhiqnManagement and AdministrationManagement and benefits of Wantang SHP stationTechnologh ExchangeFormation cause of concrete liner cracks of delivery tunnel gradual section in Daaowater power projectControl of facing flat cracks in Heiquan reservoir reinforced concrete facing damAccident analysis and treatment of delivery tunnel lining in Caoceng SHP stationApplication of unusual installation in SHP stationMechanical and Electrical EquipmentDesign characteristics of hydro-machinery in Maoshuidong SHP stationImprovement of GD002-WP-100 bulb tubular water turbineInstallation and regulation of hydraulic gate hoist of Qingshandian SHP stationComputer ApplicationAutomation system of Roujixi second-step SHP stationReliablity design of microcomputer monitoring system in Shafan secod-step SHPstaionCommunication modes in SHP monitoring systemPrinciple and advantage of auto-paramilitary synchronousRenewal and ReconstructionCapacity increase and benefits of Feng-Yan 35kV transmission lineCapacity increase of Dongfanghong SHP stationReconstruction of collecting well in Ancheng SHP stationService and MaintenancePhysical procedure of fault of triphase half-control bridge rectifierTreatment of fault lead by transformer connecting line in Sanjia SHP stationCrack treatment of penstock in Yegoumen SHP stationTreatment of abnormal phenomena of turbine in Panjiakou SHP stationFault treatment of governor in Laohugou SHP station


Published by Small Hydro Power Editional Office, Add.: P.O.BOX1206, Hangzhou, China

The National Rural Electrification Institute, Zip code:310012

Hangzhou Regional (Asia-Pacific) Tel.:86-571-88082848

Center for Small Hydro Power Fax.:86-571-88082848

ISSN 1007-7642 E-mail:[email protected]

CN33-1204/TV http://www.hrcshp.org

The main contents of the 104th issue (2002 No 2)

A Chinese Magazine“Small Hydropower” by HRC

SHP in ChinaSHP in China

The main contents of the 106 issue (2002 No 4)

Rural ElectrificationSHP construction and development in Rongshui Miao autonomous countyMake mountainous area poor county prosperous out of poor by rural electrifica-tion constructionWorking ResearchSubsistence and development of SHP under main supply networkOptimizing operation of Yaotian SHP stationEngineering supervise system of SHP projectOptimum administration mechanism for speeding up basin exploitationProgramme and DesignStructural design of small low head tubular water workshopBodily form of shaft pillway in Xiamen reservoirSelection of electrical main connection and switchyard in 110 kV substationComprehensive evaluation and suggestion of construction elements of Ximenpower stationCalculation loans in financial evaluation of Bailianxia reservoir

Computer ApplicationRegulator with microcomputer and its application in SHP stationCommunication system based on peer to peer LAN for the water tuibine testRenewal and ReconstructionRenewal of runner in Dongfanghong SHP stationEnlarging capacity of Lianhua SHP stationImprovement of automation loop in regulatorTechnical renewal of guide bearing in SHP stationService and MaintenanceServise and maintenance of bulb water turbine generator out of opetation for longtimeKilling snail in cooling water system of power station by killing snail paintFixed blade axial flow water turbine is not suited for running with low loadRemoval earthed breakdown in direct current systemTreatment of breakdown by reactor in SHP station

The main contents of the 107 issue (2002 No 5)Working ResearchDevelopment and prospect of local hydropower in Gansu provinceImprove organisms’habits environment with development of clean energy sourcesSpeed up hydropower industry with waterpower resources exploitationManagement and AdministrationOperational management of dam of Mingyangguan SHP stationTo be liminated in the end in Xinzhuang SHP stationTechnology ExchangeCrack treatment of dam of Taojinping SHP station engineeringCrack epoxy resin grouting in stone masonry arch dam of Maotan SHP stationConstruction technique for treating channel collapse in Duojiashan SHP stationApplication of local material in hydroelectric power engineeringControlled parts of air rubber dam and its operation managementMechanical and Electrical EquipmentLightning protection of microcomputer monitoring and communication systemin Shafan second step power stationEconomic benefits of Zhoutou 35kV transmision project development

Improvement of governor auto-circuit in Panjiakou flood control power station

Computer ApplicationRenewal of governor system in Shimenkan SHP stationRural electrification database management system in Yinzhou areaRenewal and ReconstructionSelection of technical renewal programme of Muchang SHP stationCapacity increase of turbine unit in Jingkou SHP stationTechnique renewal of turbine-generator in Jiaokou SHP stationCapacity expanding-a measure for increasing economic benefits of SHP stationService and MaintenanceLoosened reason of magnetic yoke key of 25MW turbine-generator and its ser-viceApplication of high grade granolithic concrete in wash channelInspection and maintenance of excitation transformer fuse frequently blewTurbine isn’t stop statically-Reason analysis and its serviceFault analysis of generator in Dongfanghong No 1 SHP station

Working ResearchOpen up a new prospect for water power electrification in Sichuan provinceDevelopment of electrification construction in fifteen yearsDevelopment of rural water power and electrificationManagement and AdministrationComment on electrical price in rural areaDevelopment idea and methods of Guanyinshan reservoirTechnical measures for cutting down network loss in rural areaProgramme and DesignProgramme of Laoguanhe Shimeng key water power projectDevelopment and construction of Luoqingjiang riverCascade exploitation of Qianshanhe river basinOptimization of development plan of Longtan second power stationConduit design of SHP station in mountainous areaProject ConstructionCollapse treatment in tunnel of Bu’ao power station

Renewal and ReconstructionRelaying protection of low-voltage turbine-generater and its improvementEnlarge capacity improvement of Erkou power stationTechnical renewal of water colling system of turbine-generator in canal headworkspower stationRenewal of oil leakage at blade pivot in adjustable blade propeller turbineBenefits by renewal of flexible cupling of No1 unit in Panjiakou power stationImprovement of self-start loop of oil pump motor of YJ-regulatorPoints for attention in fixed directly position of scroll case by winding engineService and MaintenanceAbrasion resistance and cavitation preventive of bottom flood-discharge outletof Fenghe second reservoir damRelay non-operation caused by parallel resistane loss of intermediate relayConstruction technics and maintenance of curtain grouting for dam of Fengtanreservoir


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ecently the vice Minister ofWater Resources in China, Mr.

Jing Zhengshu released that, duringthe forthcoming 5 years China’s cen-tral government will put priority intothe medium & small-sized hydropowerdevelopment, especially SHP with theinstalled capacity of less than 25MWshall be enlisted as one of those re-newable energies which are stronglysupported by the government withfavorable policies. China is a countrywith abundant water resources, andthere is a huge potential for its devel-opment. By the end of 1999, in Chinaalmost l/2 of the territory, l/3 of thecounties which equal to l/4 popula-tion mainly account on the electricpower from hydropower stations,thus make over 300 million peoplebenefited. But now the installed ca-pacity of hydropower exploited is

A Big Promotion in China’s Medium& Small-sized Hydropower

only 19.3% of the exploitable, a smallportion compared to the total amountof rich water resources. Especially inthose western regions where 72% ofthe total potential is located, the ex-ploitation rate is less than 10%.

As a renewable and environmen-tally sound energy, the developmentof the medium & small-sized hydro-power is to be strongly supported bythe central government. During the

10th Five-year Plan , China willfurther promote SHP development,and it is planned to newly increasethe installed capacity of SHP by 6GWin those 5 years, with 400 rural coun-ties hydro-electrified, so that morethan 99% of the villages can be ac-cessible to the electric power, and theper capita power consumed and thepower per household can be 400kWand 600kW respectively.

rom the Department of WaterResources in Hubei Province,

it is noticed that 5 billion RMB yuanshall be put into the development ofrural SHP there, and by the end of2005 each village will have access tothe electric power. The water re-sources sectors in Hubei are alwayssticking to the policy of the rural hy-dropower development combiningthe river conservancy, the ecologicalprotection and the poverty relief. Pres-ently, the rural hydropower develop-ment has already been an importantpillar industry in modernizing the hillyregions of Hubei as well as the key

5 Billion RMB Yuan into Rural SHP in

Hubei Provinceproject in poverty alleviation. Accord-ing to the statistics, recently HubeiProvince devoted a lot to the ruralhydropower development and theinstalled capacity has totaled l.46GWwith the annual generation of 4.29billion kWh, which makes l/5 of thetotal population, l/3 of the agriculturaland industrial sectors accessible tothe electric power. In those 27 ruralcounties with the preliminary hydro-electrification, the GDP, financial in-come, the per capita income of farm-ers and the per capita power con-sumed doubled in past five years.

China to spend billions on smallhydro upgrades

hina’s State Council has ap-proved a five-year program

to spend 70 billion renminbi (US8.4 billion) to upgrade small hy-

dro plants in 400 counties.The government-backed

China Daily quoted water officialsannouncing the program to boostrural economies. provide powerto mostly western off-grid commu-nities, and to reduce air pollutionfrom burning of wood and fossilfuels. Up to 30 percent of the totalfunds are to come from the state,with the remainder raised by localunits.

China has implemented smallhydro plants of capacities up to50 MW to provide electricity tomillions of rural homes. One fourthof China’s population is served an-nually by the 80 billion kWh fromsmall hydro. The rural electrifica-tion program has provided powerto 653 rural counties. In the latestprogram, 400 counties’ hydroplants are to be upgraded through2005.

Proposal for western Chinaprojects advances

everal off-grid hydroelectricplants ranging from 10MW

to 20 MW are to be built in China’sGansu Province as part of a pro-posed Western Region Small Hy-d r o p o w e r a n d R u r a lElectricfication Program to in-crease electricity supply to ruralareas near Langzhou.

The Asian DevelopmentBank completed a fact-finding mis-sion earlier this year to help deter-m i n e w h e t h e r t o p r o v i d eUS$950,000 to review and upgradea feasibility study for the program.

In addition to the several off-grid hydro plants ranging from10MW to 20MW each, the pro-gram calls for construction of tworun-of-river hydro plants, 90MWChaijiaxia and 90MW Hekou.

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SHP in China


ri Lanka has been an agricul-tural country for over 2500

years. Water being a prerequisite foragriculture, the country has long pos-sessed a highly developed irrigationsystem. Consisting of hundreds of stor-age tanks, this system collects waterfrom rain and streams and uses it togrow rice, the nation’s staple food. Yetthe irrigation system was never usedas an energy source or to run ma-chines.

Historically, the energy source forSri Lankans was fuel wood, which wasavailable in abundance. There was nocentral system to supply firewood-find-ing it was the individual family’s re-sponsibility, but the needs of each fam-ily were not great. There is no archaeo-logical evidence that points to the ex-istence of a centralized system for pro-vision of energy, or for the use of fueloil, coal or electricity in the country.This situation, however, started chang-ing in the nineteenth century. The es-tablishment of a public electricity sys-tem (1895) and the introduction of mi-cro hydro power to process tea leavesin the plantation sector (1940) were themain turning points.

Soon, the number of micro hydropower units started increasing, gradu-ally, and by the 1940s, there were

about 500 such units-all using im-ported equipment-in operation. Theaverage plant size was about 75kW,and matched a factory’s annual de-mand for power. The 1940s and1950s also saw a vast developmentin the major hydro power sector inSri Lanka. Several of the large-scalestorage hydro schemes, such asLaxapana and Gal Oya, commencedoperation during this period. Thesemajor hydro schemes produced elec-tricity in such quantities that theGovernment encouraged factoriesrunning on village hydro to switchto the grid, with transformers pro-vided on favourable terms. Anotherreason they switched to the maingrid electricity was that it had greatercapacity, and so allowed for expand-ing production.

The changes in people’slifestyles in the post-colonizationperiod made them look for efficientand less cumbersome ways of do-ing their work. This compelled themto use energy sources other thanbiomass, for both domestic and in-dustrial purposes, creating a newdependence on energy sources suchas electricity and fuel oil.

By 1985, 35% of the popula-tion had access to the national elec-

tricity grid, while major hydroschemes accounted for around 85%of the country’s electricity supply-al-though only 5% of the estate-ownedhydro schemes that had been func-tioning in the 1940s were still operat-ing. Seeing the importance of alter-native energy in the future, ITDG-South Asia started work on villagehydro in 1990.

However, the position of hydropower changed in 1996, when thelong drought that prevailed in hydro-reservoir areas resulted in power cutsfor up to six hours a day. The inad-equate power compelled the govern-ment-monopoly Ceylon ElectricityBoard(CEB) to increase power gen-eration, mainly through use of ther-mal and gas sources, since almost allbig hydro power potential wastapped. The use of imported fuelcaused electricity price hikes and ad-verse environmental effects. Thesedevelopments emphasized the needfor alternative energy sources, whichwould be environmentally friendlyand can serve the poor. This latterconsideration is very important in acountry where over 50% of the popu-lation are recipients of governmentsubsidy.

Context

oday, Sri Lanka has a popula-tion of 19.1 million, of which

70% live in rural communities. In meet-ing the people’s energy needs, indig-enous sources of biomass accountfor 71% of all energy (a survey re-vealed 98% of rural houses use fuelwood for cooking). Oil, meanwhile,which is entirely imported, accountsfor 19%, with kerosene used for light-ing most of the rural houses. The

Micro hydro in Sri LankaA strategy for empowering disadvantaged rural

communities in Sri Lanka is now gaining both na-

tional and international recognition. The objective of

the Electricity Consumers’ Society-is to enable com-

munities to have their own renewable energy source,

of which they have control in all aspects. M.A.LAHIRU

PERERA and TILAK W.KARUNARATNE report.

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SHP Development and Programme Worldwide


other main source-electricity-onlyprovides 10% of the total consumed.

About 54% of the populationhas access to grid electricity, withmost of this figure living in urban ar-eas. A far smaller proportion of therural population has grid access, thelow population density and the hightransmission costs making powersupply for remote areas unviable.Many rural families are without elec-tricity at present and for the next fewyears at least, if not more permanently.In the wake of annual demand for elec-tricity growing at 10%, the main sup-plier, CEB, is faced with a necessaryevil-thermal power-which has long-term consequences for the environ-ment, health and the government cof-fers.

ITDG intervention

t is this context that there hasbeen a renewed interest in non-

conventional and renewable sourcesof energy. The Energy Programme ofthe ITDG-Sri Lanka (now ‘ITDG-South Asia’) identified this need, andtook the following measures:

introduction of micro hydro (MH)power as a decentralized source ofenergydeveloping a strategy to promotethis form of energy publiclyestablishment of a sustainablesystem that can be implemented,managed, operated and maintainedby the people, to continue theproject’s role.

The result was the formulationand implementation of a specificproject, Village Hydro, from 1994, asan alternative to conventional energysources. The project, which aimed toimplement micro hydro in a villagesetting, possessed the followingcomponents:

development of local capacity

resolving the engineering andtechnical issues pertaining to theMH projectsdesigning and implementing MHprojectsavailability of subsidies and fund-ingimproving the quality and benefitsof the project outputsreplication of village hydrocapacity-building of public and pri-vate sector organizationscollection and dissemination of in-formationinfluencing policymakers to pro-mote micro hydro power genera-tion conceptsinternational networking to shareexperiences.

The strategy-an ElectricityConsumers’ Society

he process began by identify-ing remote villages without

access to electricity but with the po-tential for hydro power. Once the vil-lages were located, the EnergyProgramme of ITDG-South Asia andits Technical Advisory Committeeconducted further studies with thesupport of villagers. If there were suf-ficient resources for a village hydrounit, the Energy Programme visitedthe village and discussed thecoummunity’s energy needs with re-gard to the means to fulfil them. Thepossibility of using the water powerwas also taken up, leading to thetopic ‘village hydro’. Such visits andlong discussions, supported by vis-its to existing village hydro projects,eventually convinced the people thatthey could utilize water power.

Driven by the desire to haveelectricity, villagers formed them-selves into a social organizationcalled the Electricity Consumers’ So-ciety (ECS). The ECS then took timeto discuss and develop an action planfor initiating a village hydro unit. In

addition, the ECS prepared an esti-mate of costs for setting up a unit,and started raising funds throughcontributions.

More often than not, it was thewomen and children that were in-volved in meetings, in planning theproject activities, and in the imple-mentation. For example, women andchildren decided the dates for someconstruction activities for which theyprovided labour. When deciding asto which rooms are to be lit in a par-ticular house, it is again women andchildren that take the lead in decision-making rather than the men, who wereinstead involved in the heavy workcomponent.

ITDG-South Asia’s role wasspecific and limited to facilitation. Itassisted people by giving technicalinformation at ECS’s discussions andby being a referee when the clearancefrom government authorities, to uti-lize water sources, was sought after.ECS consists of members of the vil-lage community. The team from ITDG-South Asia was composed of a fewstaff members, assisted by a volun-teer Technical Advisory Committee(TAC). With the ECS and ITDG-SouthAsia together, the process of initiat-ing village hydro began.

Because the prospective loca-tions of village hydro were in remoteand hilly terrain, accessing the loca-tion was very difficult. The ECS facedthis at all stages of the work-con-structing the power house, transport-ing the machinery and laying thetransmission lines, etc. It tookmonths, sometimes even years, ofworking and overcoming setbacks,for the ECS to complete the wholeexercise. Often, it was only the sheerdetermination of both parties thatmade hydro a reality.

In this way, village hydro unitswere built and started operating. Theyare owned, managed, operated and

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maintained by the community-runECSs. Being a collective of people,the ECS enabled the beneficiaries todevelop and control hydro power asa local resource, increasing thepeople’s autonomy. For instance, itwas the ECS that developed institu-tional mechanisms and the tariff struc-tures for each village hydro scheme,with ITDG-South Asia’s support.These tariff structures regularized thelevies and became a useful tool in as-sessing various aspects, such as eco-nomic viability, members’ welfare,end-use products, sizing and designof the schemes.

The tariff equation is deliber-ately designed to include factors likenumber of houses, because this helpsmake socially beneficial decisions. Forexample, it is possible to choose be-tween one design approach whichlinks more houses to the hydro, andanother that links fewer houses butoffers employment to a few poorervillagers.

ITDG-South Asia’s experienceis that all hydro power equipmentused in plantations was of foreignmanufacture which, although it gen-erated power, did not help in buildinglocal technical capacity. Furthermore,the local manufacture of small hydroequipment was inhibited. Nobodyhad specialist expertise in village hy-dro, so improving the local capabili-ties thus became imperative to thedevelopment of village hydro. Ac-cordingly, several on-the-job trainingprogrammes were conducted byITDG-South Asia, and the capacityto design, install, maintain and oper-ate units was established. Two majorachievements of these programmeshave been:

the capacity-building of six localmechanical workshops to manu-facture hydro turbines and the af-filiated components with locallyavailable materials, and to pro-

duce and adapt equipment fromexisting designsthe development of a village hy-dro model in which the technol-ogy, cost and management com-ponents were simplified suffi-ciently enabled the villagers tohandle most of the work locally.

In developing the technical ca-pacity, the approach was to train sometechnicians whose potential had beenidentified through comprehensivescreening. The training covered sev-eral areas, including the redesign andmanufacture of the equipment-tur-bines and the generators, single-phase induction generators (rewiredfrom three-phase induction motors,locally assembled and available in themarket), induction generator control-lers (manufactured from electroniccomponents found in the local mar-ket) and so forth. As Sri Lankans arefamiliar with maintaining and operat-ing these machines, this was foundto be a more sustainable approach tovillage hydro than using the importedequipment.

With technical skills developed,a village hydro model made and amechanism for people’s involvement(i.e. ECS) established, the project ini-tiated four pilot village hydro sites,and then moved into the village hy-dro replication process. This too wasa difficult and time-consuming pro-cess, since a little modification wasrequired when installing a village hy-dro unit, to suit it to its location andwater source. The outcome was theconstruction and operation of 75 vil-lage hydro schemes by August 2000.Of these village hydros, one is in atea es ta te serving the es ta telabourers’ families, and another is oflow-head technology, a pilot schemeinitiated for testing purposes. Theschemes possess an accrued capac-ity of over 400kW, and provide elec-

tricity and the associated benefits to2000 poor and under-served familiesin 75 underprivileged villages.

Generally, the ECS membershave contributed over 40% of totalcosts by carrying out civil works, wir-ing, installation and laying the trans-mission lines for all village hydroschemes. Skilled, indigenous castingtechnology was moulded into themanufacture of turbines. Masonryexpertise was easily available, norwas it difficult to procure anelectrician’s service for the work. Thevillage contribution as a whole con-sisted of cash, materials and labour.The main part of the funding for theschemes, however, came from varioussources such as the government’sEnergy Conservation Fund and theJanasaviya Trust Fund, local govern-ment authorities and Provincial Coun-cils. ITDG-South Asia and a TAC(technical advisory committee), con-sisting of experts from research insti-tutions and the private sector, ren-dered the technical support.

Since the entire project processwas new to the country, the experi-ence earned from the work was con-sidered valuable to both ITDG-SouthAsia and the donors that funded theproject. The lessons learned werethus documented and shared with theothers concerned, at seminars, work-shops and at staff exchange visits,at local, regional and internationallevels. At present, the subject of vil-lage hydro is addressed by severalpublications, including evaluationreports. In fact, the Sri Lankan experi-ence in village hydro contributed inno small measure in the productionof ITDG’s publications on the sub-ject.

The experience showed that theinitial investment for village hydro is,from the villagers’ perspective, highenough to seem unaffordable. Thisnecessitates the provision of initial



capital, or at least a part of it, exter-nally, to make village hydro afford-able to the people that most need it.This can either be a subsidy or a loanat low interest rates, depending onthe project and the community capac-ity. In fact, as a result of the success-ful development of village hydro byITDG-South Asia, the DFCC Bank(formerly known as Development Fi-nance Corporation of Sri Lanka) hasalready introduced a credit schemethat provides loans for village hydro,of which a quarter is a grant throughthe Global Environment Facility(GEF), with the support of the WorldBank.

A factor worth considering inprovision of incentives is hydro’s fi-nancial viability, which partly de-pends on the ability to convert thegenerated energy into revenue. Vil-lage hydro can be more productiveand therefore, more affordable, if itcan power a community-run machine,as with the Katepola village hydroproject, for instance, where a rice millis operated.

The average electricity supplyfrom village hydro is about 100W perhousehold. This enables the lightingof five 20W fluorescent lamps, twoof which are switched off when ablack-and-white television isswitched on. The members’ main re-sponsibility is to adhere to the ECS’sregulations governing power distri-bution, including the payment of amonthly fee. Defaulting on paymentsand the unauthorized use of power inexcess of allocation invariably leadsto a fine, and, in extreme cases, thedisconnection of supply, though re-course to the latter is rare.

The ECS and the village hydrohave, in most cases, improved socialcohesiveness among the beneficiaryfamilies. Hydro power distributionwas no exception to the village cul-ture, based as it is on the generation-

long concept of sharing. Despite thevery limited capacity of village hy-dro, beneficiaries shared their alloca-tion of power when the neighbourswere in need of more energy, for in-stance, during weddings or funerals.The ECS’s regulations partly helped,too, in creating a bond among ben-eficiaries themselves. It was hearten-ing to note that some ECSs providedfree or subsidized connection to themost deserving amongst themselves,and continued doing so in similarcases.

The tariff collected from benefi-ciaries has formed a community fund.The ECS has managed this fund,which was used mainly in paying thebank loan, if there was one, and inthe maintenance and repairs to vil-lage hydro, when required. Some ofthe ECSs have invested a part of thefund in leisure and income-generationactivities, displaying their inventive-ness in maximizing the benefits. Oneexample is the purchase of musicalinstruments from the ECS fund, train-ing a number of villagers to play theinstruments and hiring out the trainedmusicians with the equipment, forfunctions and on payment. This waspart of the ECS of Isanawatte villagehydro scheme, which enabled eachmusician to earn 150 Rupees(US$1.65) per function-day.

One other outcome of the ECSwas the growth of environmentalawareness in the beneficiary commu-nity, especially among children. Therewere communities that carried outtree-planting in the catchment areasto prevent soil erosion and to increasethe shade. Some others became alertto illicit timber-felling, and protectedthe tree cover that affects the watersource of village hydro. The manda-tory requirement for permission fromthe Forest Department and the Cen-tral Environmental Authority(CEA)when setting up village hydro

projects preserves the relationshipbetween the forest cover, the envi-ronment and the village hydro. Be-sides, each ECS, and the village hy-dro that were developed by ITDG-South Asia, took pains to protect theenvironment and preserve the climateand ecology. Efforts have alwaysbeen made to leave the natural beautyof the sites intact.

Project results

he ‘Village Hydro’ project hadestablished and monitored 75

village hydro installations by August2000, and the figure rose to 89 instal-lations by 31 December of that year.The first 75 installations, for whichdata is available, have an accruedcapacity of 415kW and work, on av-erage, for 9 hours each day for 30 daysa month-i.e. only for lighting-with theresults that can be seen in table 1.

l 2562 households-i.e. approxi-mately 12,810 individuals-whopreviously had no access arenow provided with electricity

l provincial councils, local gov-ernments and the banks (six intotal) included village hydro int h e i r w o r k p l a n s a n dprogrammes

l several publications-includingthe ITDG annual and interna-tional journal on renewable en-ergy ‘E-net’ –were disseminatedamong about 5000 individualsand agencies in 25 countries

l each village hydro installationconsists of three constructions:a small weir, forebay tank and apower house to accommodatethe machinery and electricitydistribution panels. Sometimesvery rarely, civil works are re-quired for the tailrace

l innovative solutions were found

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by way of enhancing local un-derstanding of aspects of vil-lage hydro-such as local survey,designing, manufacturing, op-eration and maintenance capa-bilities, and the participatoryproject implementation-whichall proved a success

l innovative products sold in-c l u d e d c u r r e n t c u t - o u tswitches, induction generationcontrollers(IGC), energy-savinglamps and electric ballasts forfluorescent(tube)lights

l the ITDG country programmehas undertaken a considerablenumber of renewable energyprojects other than village hy-dro; for example, solar-hydroenergy mix sites, wind-biogashybrid systems and individualwind, biogas, estate hydroprojects and grid-connectedmicro hydro projects.

Conclusion

hrough several years of hardwork with the rural communi-

ties in Sri Lanka, ITDG-South Asiahas identified and proved a novel andsustainable strategy for empoweringthe disadvantaged communities. Theobjective of the strategy-the Electric-ity Consumers’ Society-is to enablecommunities to have their own renew-able energy source, of which theyhave control in all aspects. The most

significant aspect of the strategy isthat ECS has, while finding an effec-tive and alternative energy source likevillage hydro, made the energy sup-ply a community responsibility,thereby making the community inde-pendent.

The experience gained has beenshared with the governmental offic-ers, the NGOs, banks, multilateralagencies and the individuals inter-ested, through seminars and obser-vation visits to village hydro sites.The result was that ITDG-SouthAsia’s work and the strategy in thevillage hydro sector has been recog-nized by many, both nationally-by theGovernment of Sri Lanka-and inter-nationally, after further research onthe work. The World Bank has for thefirst time accepted the ECS approach,by including village hydro in its En-ergy Service Delivery Project(ESDP).This is in addition to the ITDG-SouthAsia’s own achievements, such as de-veloping and sustaining the villagehydro technology, and inclusion ofvillage hydro in the National EnergyPolicy.

The next important steps for theECS’s future are as follows:l to review its efforts to produce

and share energy, and get thesame replicated

l to develop the grid-connectedvillage hydro schemes, man-

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aged and maintained by theECSs as an income-generatingproject for other village devel-opment work

l continuous monitoring of theproject.Essentially, this is an effort to

share its capabilities with others,while consolidating the currentachievements.

Despite all these efforts, it is stillthe bottle lamps that provide light forover a half of the 3 million students inSri Lanka as they study; it is still theimported mineral oil that provides fuelfor over a half of Sri Lanka’s popula-tion of 19 million. The time has nowcome to put a stop to that dependencythrough use of locally available en-ergy sources. A new era of empower-ment has dawned, which will be fullyrealized only when this ‘powerless’46% of the people has gained accessto an environmentally friendly and ef-ficient power source, perhapsthrough the implementation of manymore village hydro schemes.

M.A.Lahiru Perera is RegionalDirector-South Asia for ITDG.

Fax:+94 1 856188e-mail:[email protected] W.Karunaratne also works forITDG.e-mail:[email protected]

References

1.Perry, Robert H. & Green, DonW.Perry’s Chemical Engineer’s Hand-book. McGraw-Hill, 1999.

2 . Av a l l o n e , E u g e n e &Baumeister III, Theodore. Marks’Standard Handbook for MechanicalEngineers. McGraw-Hill, 1996(10th

Edition).

Source: Renewable Energy World

Table 1. Energy generated and fuel use/emissions avoided (diesel thermalenergy content assumed to be 42 MJ/kg)1,2

Result Per month Per year

Electricity generated(MWh) 112.05 1,344.60

Energy saved(kWh) 112,050 13,446.00

Fuel diesel saved(kg) 28,812.86 345,754.32

Fuel diesel saved-tons of oil equivalent(ToE) 28.80 345.60

Carbon dioxide(CO2)avoided, in tons 90.41 1,084.92



SMALL HYDRO POWER: AN INDIAN EXPERIENCE

V Bakthavatsalam*

India has a history of 100 years in Small Hydro. Howeverthe country switched on early to large hydro and pursuedthe same reaching an installed capacity of 21,000 MW withonly 500 MW of Small Hydro. Of late, environment drivenawareness seems to have reminded us that what Indianeeds is not the mass production but production by masses.The advantages of small hydro is so large that plannerssee investment in its development as prudent. IREDAs ef-forts in this direction has seen capacities develop amongthe stakeholders, justified in the World Bank’s second lineof credit.

f all the non-conventional re-newable energy sources, small

hydro represents ‘highest density’resource and stands in the first placein generation of electricity from suchsources throughout the world. Glo-bal installed capacity of Small Hydrois around 50,000 MW against the es-timated potential of 780,000MW.

Small Hydro is environmentallybenign, operationally flexible, suitablefor peaking support to the local gridas-well-as for stand alone applica-tions in isolated remote areas. Even ifwe ignore the CO

2 abatement costs

and ‘acid rain’ abatement costs etc.,of conventional thermal route, smallhydro is benevolent on the followingknown hard facts of economics.

Short gestation and limited in-vestments of Small Hydro are afford-able by the private sector, enablingquicker electricity and economic re-turns. Fiscal incentives by CentralGovernment and policy framework byState Governments are attracting pri-vate initiatives in Small Hydro. Satis-fied by the progress made in imple-mentation of the first line of credit fora target of 100 MW of capacity addi-tion, World Bank has extended an ad-ditional line of credit amounting toUS 110 million for development of200 MW Small Hydro Power Capac-ity. The World Bank second line ofcredit which is operated in an entre-preneur friendly environment is likelyto spin off an entirely new techno-

commercial scenario paving the wayfor attractive business opportunity inSmall Hydro.INDIAN POTENTIAL OF SMALLHYDRO

ndia has one of the world’slargest irrigation canal net-

works with thousands of dams. It hasmonsoon fed, double monsoon fedas well as snow fed rivers and streamswith perennial flows. An estimatedpotential of 15,000MW of Small Hy-dro exists in India. The data base cre-ated by MNES includes 4,096 poten-tial sites with an aggregate capacityof 10,071 MW as given in table 1.

SMALL HYDRO DEVELOPMENTIN INDIA

he first Small Hydro Project of130 kW commissioned in the

Hills of Darjeeling in 1897 marked thedevelopment of Hydro Power in In-dia. The Sivasamudram Project of4500 kW was the next to come up inMysore district of Karnataka in 1902,for supply of power to the Kolar GoldMines at 25 Hz. The pace of power

development including hydro wasrather tardy. The planned develop-ment of Hydro Projects in India wastaken up in the post independenceera. This means that the 1362 MWcapacity (including 508 MW hydro)installed in the country before inde-pendence was mainly coming fromSmall and Medium size projects. Thestatus of implementation as of March2001 is shown in table 2.

GOVERNMENT SUPPORT TOSMALL HYDRO

overnment of India, throughits full-fledged Ministry of

Non-Conventional Energy Sources(MNES) formed in the year 1992-theyear of Rio Summit on Environmentand Development, is extending mul-tidimensional support to the devel-opment of mini hydels (upto 25 MW)as one of the environmentally benignrenewable energy technologies, keep-ing in tune with the Government’soverall thrust on liberalisation ofeconomy and private sector partici-pation in power development. Fiscalincentives available for ‘Small Hydro’sector are given below.

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*Managing Director, Indian RenewableEnergy Development Agency Limited, New Delhi.


Table 1. STATE WISE DETAILS OF IDENTIFIED SMALL HYDELSITES UP TO 25 MW CAPACITY IN INDIA

ADDITIONAL INCENTIVES OF-FERED BY MNES

l Promotional Incentive Scheme tocarry out Detailed Survey & Investi-gation (DSI) and preparation of De-tailed Project Report (DPR)l Interest Subsidy scheme for set-ting up of commercial small hydropower projects especially in the pri-vate sectorl Capital subsidy scheme for settingup of small hydro power projects inthe State sectorl Scheme fo r Renova t ion ,Modernisation & capacity, upratingof small hydro power projectsl Promotional incentive scheme fordevelopment and upgradation of wa-ter mills

In addition to the above fiscalincentives, MNES has issued guide-lines for off-take of power fromrenewables on concessional terms bythe State Electricity Boards in respectof power wheeling, banking and buy-back. Following the model guidelines,several states of India have an-nounced their Private Sector Policy.

PRIVATE SECTORPARTICIPATI ON

he States where small hydropotential is available have

come out with attractive policies forprivate sector participation, in linewith MNES guidelines. The pioneer-ing efforts of the Karnataka StateGovernment in establishing a SingleWindow Agency for clearance of SHPprojects to private sector and theKarnataka Power Corporation (KPCL)as the nodal agency has sparked thegrowth of the sector and has becomean example for other States to follow.Some of the success stories of pri-vate sector projects in the new era inthe State are 18 MW Shivapur projectof Bhoruka Power Corporation, Ban-

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S.No. Name of the State Identified Number Total Capacityof Sites in MW

1. Haryana 22 30.052. Himachal Pradesh 323 1624.783. Jammu and Kashmir 201 1207.274. Punjab 78 65.265. Rajasthan 49 27.266. Uttar Pradesh & Uttaranchal 445 1472.937. Gujarat 290 156.838. Madhya Pradesh & Chhatisgarh 125 410.139. Maharashtra 234 599.4710. Andhra Pradesh 286 254.6311. Karnataka 230 652.6112. Kerala 198 466.8513. Tamil Nadu 147 338.9214. Bihar & Jharkhand 171 367.9715. Orissa 161 156.7616. Sikkim 68 202.7517. West Bengal 145 182.6218. Arunachal Pradesh 492 1059.0319. Assam 46 118.0020. Manipur 96 105.6321. Meghalaya 98 181.5022. Mizoram 88 190.3223. Nagaland 86 181.3924. Tripura 8 9.8525. Andaman & Nicobar Islands 6 6.4026. Goa 3 2.60

Tatal 4096 10071.81

Sources: MNES Annual Report, 2000-01

Table 2 INSTALLED CAPACITY (MW) OF SMALL HYDRO IN INDIA

Project Status Total No. of Projects Total Capacity in MWCommissioning 387 1341.05Under Implementation 170 498.28Total 557 1,839.33

Sources: MNES Annual Report, 2000-01

FISCAL INCENTIVE FOR SMALLHYDRO SCHEMES

l Schemes involving capital uptoRs 500 Million need no Environmen-tal Clearance from Ministry of Envi-ronment & Forests (MoEF)l Five years Income Tax holiday

on grid interactive power generationprojectsl Term loans through IREDA forschemes upto 25 MWl Customs duty exemption forElectro-mechanical Equipmentl Excise duty exemption for Elec-tromechanical Equipment



galore and 1 MW Gokak Falls Schemeof Gokak Mills, Belgaum and 3.9 MWShahpur Branch Canal project ofBhoruka Power Corporation, Banga-lore and 2.8 MW Dhupdal HydroScheme of Gokak Mills, Belgaum. Theneighbouring States like Kerala andAndhra Pradesh followed the ex-ample and many SHP sites were allot-ted to private sector companiesmainly to meet their captive require-ments. The first private sector projectin Kerala namely’ Maniyar 12 MWSHP, was completed in a record timeof two years. The northern States ofUttar Pradesh and Himachal Pradesh,which have tremendous potential ofhilly hydel schemes also announcedtheir policies and their projects areunder allotment for captive as well aspower sale options.

WORLD BANK INITIATIVETHROUGH IREDA

pre-investment study was car-ried out under the auspices of

the Energy Sector Management As-sistance Programme (ESMAP) jointlysupported by UNDP and World Bankin the years 1998-1990 in associationwith the Indian Govt. agencies. Theprincipal objective of this study wasto apply techno-economic criteria toimprove the design and economic vi-ability of irrigation based mini-hydroschemes in India, and to identify andprepare a medium term investmentprogramme to develop a series of irri-gation based hydro schemes in In-dia. This study covered more thanfifty prospective small hydro sites infive states. Detailed tech no-economicanalysis and cost-effective designswere made for some of these sites.

Consequent to the ESMAPstudy, World Bank (WB) offered a lineof credit worth US $70 million to beutilized during 1993-1997 with a tar-get capacity sanction of 100MW.

The credit line has moved fastenough and IREDA could sanction47 projects with an aggregate capac-ity of 145.16 MW, exceeding the tar-get one year ahead of schedule. Theenthusiasm shown by the privatepromoters as well as their understand-ing that the small hydro is the mostattractive long term option not onlyfor their captive needs but also as abusiness opportunity by way of sell-ing power at commercial rates havegiven a fillip to the sector and there isgoing to be a steady growth in thesmall hydro sector. Out of the WorldBank package, a capacity of 84.40MW has been commissioned byMarch 2001. Satisfied by the progressmade in implementation of the firstline of credit, the World Bank has ex-tend an additional line of credit (sec-ond line of credit) amounting toUS$110 million for development of 200MW Small Hydro Power Capacity.

SECOND LINE OF CREDITFROM WORLD BANK

atisfied by the progress madein implementation of the first

line of credit, the World Bank has ex-tended an additional line of creditamounting to US$110 million for de-velopment of 200 MW Small HydroPower Capacity.

UNDP-GEF INITIATIVE ON HI-MALAYAN SMALL HYDRO

gainst the background of de-pleting forest resources of

Himalayas, the UNDP-GEF India HillyHydel Project was initiated in the year1994 as the first Indian Project fromGEF portfolio in order to develop anational strategy and master plan foroptimum utilization of Small Hydro re-sources of Himalayan and sub-Hima-layan regions with an outlay of US$15 million. The scheme also envis-ages implementation of 20 demonstra-tion schemes, upgradation of 100

water mills for electricity generation.A revolving fund has been created atIREDA to finance commercialschemes under the project.

PORTABLE MICRO HYDELPROGRAMME OF MNES

nother innovative concept thathas been developed and is un-

der implementation, is the installationof light weight Portable Micro HydelSets in the hilly areas of the country,particularly the Himalayan region.The main objective of this novelscheme is to provide power to non-grid connected remote areas by us-ing ‘stand alone systems’ rangingfrom 5 to 15 kW, which would be eas-ily installed and maintained by thelocal communities. MNES in the firstinstance has supplied 50 such setsfree of cost and IREDA is the imple-menting agency for the same. Thebeneficiary will have to carry out allperipheral works essential for comple-tion of the projects, including civilworks, local distribution network etc.In the subsequent phases, based onthe success of implementation anddemonstration of the benefits of thefirst phase, the programme may befurther expanded with phased reduc-tion of subsidy. As of now, 35 projectshave been commissioned and are gen-erating power.

IREDA’S LENDING ACTIVITIESREDA’s Mission is to be a pio-neering, participant friendly

and competitive institution for financ-ing and promoting self-sustaining in-vestment in energy generation fromrenewable sources and energy effi-ciency for sustainable development.

IREDA’s main objectives are:* To promote renewable sourcesof energy* To provide financial support tomanufacturers and users* Act as a financial intermediary

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* Assist in rapid commercializa-tion* To promote energy efficiency &conservation, and* To provide consultancy

IREDA’s mandate covers a widespectrum of financing activities in-cluding those that are connected toenergy conservation and energy ef-ficiency. At present, IREDA’s lend-ing is mainly in the following areas:* Hydro Energy* Wind Energy* Bio- Energy* Solar Energy* Developmental Activities New Ini-

tiatives* New & Emerging Technologies* Energy Efficiency & Conservation

The maximum extent of assis-tance extended by IREDA is deter-mined by IREDA’s exposure limitwhich is set according to the client’scredit worthiness and the security/guarantees offered for the term loan.

To qualify for IREDA financingthe projects are required to satisfythe following criteria:* The project must be technicallyfeasible;* It must represent the least costoption;* The borrowers capability to un-dertake the project in terms of theirperformance track record, soundnessof financial operations and adequacyof organizational and technical capa-bilities must be satisfactory;* The project must be financiallyviable with an internal rate of returnof not less than 12%;* The project must be economi-cally justified with satisfactory socialcost benefits in terms of generationand/or conservation of energy, em-ployment generation and contributeto balanced economic growth in theregion; and* All statutory clearances from

Table 3 HIGHLIGHTS OF FINANCING NORMS

Debt instruments Project financingEquipment financingLoans for ManufacturingMarket Development (including Export Promotion)Energy CentresFinancial IntermediariesBusiness Development AssociatesRenewable Energy Umbrella FinancingNon -Conventional Energy TechnologyCommercialization Fund Scheme

Quantum of Assistance Upto 75% of the project costUpto 80% of the equipment cost

Rate of Interest 3.0 %- 14.50 % per annum(Varies from sector to sector)

Moratorium Upto 3 years(Varies from sector to sector)

Repayment Period Upto 10 years(Varies from sector to sector)

State & Central Government agenciesneed to be furnished.

IREDA’S FINANCING SCHEMESFOR SHP SECTOR

REDA started financing smallHydro Projects from middle of

Vllth Five Year Plan [1985-1990] andthe projects sanctioned were for Gov-ernment sector along with subsidyfrom MNES. In line with Govt. of In-dia policy of privatisation of powersector, from 1992-1993 IREDA startedfinancing Private Sector small hydroprojects from its own resources anda modest beginning was madethrough financing one private sectorproject of 12MW and another reno-vation project of 1 MW. By the endof the financial year 2000-2001 IREDAhas financed a total of 91 Small Hy-dro projects with loan assistanceamounting to Rs. 6887.68 million forinstallation of aggregate capacity ofnearly 265.03 MW, which include 81private sector projects.

PROMOTIONAL ACTIVITIESpart from the role of a financialinstitution, IREDA also con-

ducts various promotional initiativesthrough the business meets, seminarsand workshops etc. IREDA also doesentrepreneurial development throughit’s various Entrepreneurship Devel-opment Programmes (EDPs), a num-ber of them exclusively devoted towomen. It also encourages more andmore women participation. IREDAalso takes critical care to ensure en-vironment friendliness and bettereco-balance. The agency also en-courages, rural development, selfemployment and self reliance throughdecentralized NRSE programmes.

INTERNATIONAL ASSISTANCEREDA’s track records ofachievements have also at-

tracted global attention. Renownedmultilateral and bilateral agencieshave come forward to join this globalmovement for sustainable develop-ment.

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CORPORATE PLAN AND VISIONREDA’s activities form an in-tegral part of the National. Five

year plans and annual plans are par-ticularly dovetailed to the five yearplans of the MNES. During the 9th

plan period which coincides with theCorporate Plan, IREDA’s proposalenvisages ambitious targets for sanc-tion & disbursement of loan for set-ting up renewable energy projects.The thrust during this period is to har-ness renewable energy sources forproductive purposes. The highlightsof the plan are as under:IREDA 9TH

PLAN TARGETS (1997-2002)Capacity Addition* Installation of power generationcapacity of 1150MW* Setting up projects to generate en-ergy equivalent to 0.392 Million MTof coal through renewable resources.Sanction of term loan* Rs. 3779 CroresDisbursement of lcon* Rs. 2703 Crores

IREDA VISION TARGETS (1997 -2010 )Capacity addition* Installation of power generationcapacity of 2993 MW* Setting up projects to generate en-ergy equivalent to 0.976 Million MTof Coal through renewable resourcesSanction of term loan* Rs. 16100 CroresDisbursement of loan* Rs. 13880 Crores

EMERGING SCENARIO &STRATEGIES FOR FUTURE

rom the foregoing discussions,it is apparent that in India, it is

an opportune time that Small Hydroshould get a strategic thrust, as envi-ronment driven awareness has redis-covered ‘Small Hydro’ as a principal

renewable energy source for sustain-able development.

For a multi-dimensional strate-gic thrust, identification of weak ar-eas and threat perceptions need tobe visualised carefully and appropri-ate steps need to be taken. In thisconnection, following need to be ad-dressed:* Non- availability of hydrologicaldata and pre-investment study re-ports of newly identified sites.* Single window clearance facility notfunctional in all the States.* Non- uniformity of Wheeling &Banking facility.* Non- uniformity of buy-back andthird party sale.* Water royalty charged from PrivateEntrepreneurs.* Economics depends on Govern-ment Policies which need to be con-sistent.

A country-wide scientific re-source assessment needs to be donemaking full use of metered data of at-least 2 to 3 years as well as corrobo-rative data from the existing irrigationand power projects. On the policyfront, uniformity of facilities fromState Electricity Boards may be a de-sirable step besides withdrawing wa-ter royalty from Small Hydro Projects.State clearance mechanisms need tobe further streamlined and fine-tunedto make single window clearance re-ally effective. The various fiscal andfinancial incentives extended by theGovernment should continue in theforthcoming plans to ensure eco-nomic viability and attractive returnsfrom the projects.

Target segment based approachwould be desirable in a diverse coun-try like India with complex, socio eco-nomic objectives. Following seg-ments appear imminent for evolvingstrategies to achieve a balanced

growth of Small Hydro:1. Hilly Hydels2. Existing irrigation canal falls3. Run-of-the-river schemes4. Socially relevant micro hydelschemes5. Hybrid systems with other renew-able sources as well as conventionalsources of energy6. Stand alone systems for off-girdapplications7. R&M of existing Small HydroSchemes8. Mini Hydel Schemes in return ca-nals of Power Plant cooling watersystem.

In the overall scenario of SmallHydro, few trade-offs are necessaryto be carefully perceived for a rightkind of decision on strategic devel-opment of Small Hydro. These ore:a) Detailed Vs. Adequate Investiga-

tion,b) Conventional Vs. Innovative de-

signs,c) Standardisation Vs. Optimisation,d) Efficiency Vs. Effectiveness,e) Commercialisation desirability Vs.

Socio-economic Objectives.

CONCLUDING REMARKSith the dawn of liberalisationpolicy in India, power sector

is attracting private participation in abig way. The World Bank line of creditwith its emphasis on private sectorparticipation is boosting the currenttrend in SHP development and is ex-pected to contribute to the rural andsemi-urban energy scenario of thecountry in a significant way. A tech-nically sound programme like thisoperated in an entrepreneur friendlyfiscal environment is likely to spin offan entirely new techno commercialscenario paving the way for attrac-tive business opportunities in SmallHydro.

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The United Kingdom’s Office forGas and Electricity Markets (Ofgem)has accredited 123 small hydro gen-erators as qualifying renewablessources for exemption under the Cli-mate Change Levy. Those plants areamong 396 generators, totaling1,232MW, accredited for exemptionunder the levy, according to the of-fice that regulates gas and electricityindustries.

Previously, industrial and com-mercial electricity customers, alsocalled non-domestic customers, paida Climate Change Levy of 0.43 penceper kWh (0.61cent U.S.) to suppliers,who sent the payment to thegovernment’s tax office. Residentialcustomers, also called domestic cus-tomers, are not affected by the Cli-mate Change Levy and therefore are

not entitled to the exemption.Under the exemption program,

accredited generators have been is-sued Levy Exemption Certificates fortheir monthly production, retroactiveto April 2001.Electricity suppliers whobuy that output for resale to indus-trial and commercial customers do notpay the Climate Change Levy on thatelectricity and may pass the savingsalong to customers who have signedrenewables contracts.

The hydro plants, which rangefrom 80 kW to 10MW and total about158.2 MW, represent 31 percnet of thegenerating stations exempted from thelevy. Other accredited generating sta-tions are powered by landfill gas,wind, sewage gas, and waste.

Ofgem posted a list of exemptedgenerators on the internet: www.ofgem. gov. uk/industry/ccl. htm.That list is not final, as generatorsstill are being encouraged to applyfor the exemption.

U.K. regulators exempt hydros from climate levy

The historic 500-kW CroesorPower Station in Snowdonia NationalPark is one of five hydroelectricprojects in the North Wales area ofthe United Kingdom operated byInnogy.

Pioneering engineer MosesKellow built the station nearly 100years ago to supply power to slatequarries. The quarries closed in the1930s. The plant fell into disrepair inthe 1950s.

National Power, now known asInnogy, redeveloped the power plantat Blaenwm, Gwynedd, returning it toservice in November 1999 at a cost ofmore than 1 million (US$ 1.6 mil-lion).

Dulas Ltd. Worked on the

Croesor power station restoredproject, on a turnkey design-to-com-missioning basis. Extreme terrain con-ditions required special equipment,including a “walking excavator” teth-ered to rock face. A helicopter trans-ported pipes and intake materials.

The project features a 1,000-rpmGilkes single-jet Pelton turbine thatis operated under 260 meters head.The project contains a runnermounted to the extended alternatorshaft, a hydraulically actuated waferbutterfly valve that isolates the ma-chine, and Dulas’ “Minscon” solidstate controller. All equipment wasmanufactured in the United Kingdom,with the exception of the alternator,which was manufactured in Spain.The plant is operated remotely via aSCADA system.

India’s NHPC develops twosmall hydros

India’s National HydroelectricPower Corp. (NHPC) is in the pro-cess of developing two small hy-dro plants, the 4-MW Sippi projecton Sippi River and 6-MWKambang project on Siru River,both in Arunachal Pradesh State.

Sippi is to feature two 2-MWturbine-generator units andKambang is to contain three 2-MWunits. NHPC was recruiting con-tractors to design, manufacture,supply, erect, test, and commissiongenerating plant and hydrome-chanical works. Contractors alsowill handle various civil works.

India uti l i ty commissionsAndaman Island project

India’s National Hydroelec-tric Power Corp. reports it has com-missioned the 5.25-MW Kalponghydroelectric project on AndamanIsland in the Bay of Bengal. Thefirst 1.75 MW unit was connectedto the local grid on July 1,2001, 16months ahead of schedule.

Developed on the left andright forks of Kalpong River for theAndaman and Nicobar IslandsAdministration, the Kalpongproject includes a 34-meter-tall,138-meter-long concrete dam, a 27-mter-tall, 146-meter-long rockfilldam, a 300-meter-long canal, a 133-meter-long tunnel, three penstocks,a powerhouse containing three1.75-MW units, and a switchyard.

The project is to generate14.83 million kWh annually, replac-ing some diesel generation forwhich fuel must transported.Source:HRW

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News in SHP


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A new bank formed by a groupof financial institutions and other cor-porate groups is to finance hydro andother “clean energy and infrastruc-ture” ventures in Nepal. The CleanEnergy and Infrastructure Develop-ment Bank(CEIDB) will lend moneyto entrepreneurs to develop hydro-power; other generation projects, in-cluding solar, wind, biomass, biogas,and municipal solid waste; and cleanenergy-driven infrastructure projectssuch as electric-powered trolleybuses, cable cars, and trains.

Winrock International in Nepalhas identified 28 small scale hydro-power projects, exceeding 75MW intotal installed capacity, for CEIDB in-vestment. Opportunities also havebeen identified in other renewableenergy projects to meet energy needsof hotels, residences, and small in-dustries in rural areas.

Winrock, which is serving astechnical secretariat to CEIDB, pro-vided incubation services to the newbank. Those services included fi-nancing/commissioning a feasibilitystudy; structuring the bank; garner-ing support from prospective pro-moters (banks, finance companies, in-surance companies, other contractsaving institutions, and other corpo-

New bank to finance projects in Nepal

rate groups). The company also ar-ranged for preparation of charterdocuments, contacted foreign inves-tors to measure their interest in in-vesting in the the bank(10 percent ofthe total equity is earmarked for in-vestment by foreign investors), andarranged to tap the World Bank’s Glo-bal Environment Facility fund to sup-port incorporation and financing ofthe bank.

Initially, the bank will have apaid-up capital equivalent to aboutUS$6.7 million(Rs500 million). Sixtypercent of the amount(about US$4million) has been committed for sub-scription by promoters includingprovident funds, insurance compa-nies, banks and finance companies,and other corporate groups. By thesixth year, the bank’s borrowings anddeposits are projected to reach US$36million and US$60 million, with a lend-ing and investment portfolio ex-pected to exceed US$100 million.

For information about CEIDB,contact Ratna Sansar Shrestha, FCA,Senior Adviser, Clean Energy Group,Nepal, Winrock International, P.O.Box1312, Kathmandu Nepal;(977)1-472839; Fax: (977)1-476109;E-mail:[email protected].

The government of Ugandaplans to assess alternative energyresources, including small hydro-power, and how to meet demand ofenergy deficient areas of Uganda.

The Ministry of Energy andMineral Development wants to estab-lish a technically, economically, andsocially feasible program of least costalternative energy resources to serverural areas and small towns. The en-tire study is to require 13 months.

The first phase of the study isto formulate an alternative energy de-

Uganda plans assessment of energy resourcesvelopment program, with assessmentof resources including mini-and mi-cro-hydro, biomass, solar, wind, andgeothermal power. Also included isforecasting of energy demand, prepa-ration of pre-feasibility studies, andformulation of a development strat-egy.

Phase 2 includes preparation offeasibility studies of priority projectsfor five of the most energy deficientareas. Phase 3 includes detailed de-sign of selected projects.

India state moves to buildsix small hydros

India’s Bihar State HydroelectricPower Corp.Ltd. is conducting a smallhydro program that will include con-struction of six 1-MW hydroelectricprojects on Sone Canal in Bihar State.BSHPC is raising funds to develop atotal of 22 such projects, includingfour tendered previously.

The group of six projects, eachfeaturing two 500-kW turbine genera-tor units, are to be located at Dehraand Sipatia in Aurangabad District,Belsar in Jehanabad District, andSebari, Shirkhinda, and Paharma, allin Rohtas District.

China’s 54 MW Fushihydro in full operation

The third and final unit of the 54MW Fushi hydropower plant begancommercial operation June 28 on theRongjiang River, 153 kilometers fromLiuzhou in China’s Guangxi ZhuangAutonomous Region.

Meiya Power Co. Ltd., whichowns 70 percent of the project, saidthe first and second 18-MW unitsbegan operation in April and Octo-ber 2000. MPC’s joint venture part-ner is Liuzhou Rongjiang Hydro-power Development Co. Ltd. Theplant is connected to the Guanxi re-gional grid and, in addition to sup-plying power, will improve area irri-gation and navigation.

Cambodia rural power planto include small hydro

The government of Cambodiaexpects to recruit contractors andconsulants to carry out a rural elec-trification program that includes de-velopment of mini-and micro-hydro-power plants.

The government said it intendsto seek a US 30 million credit fromthe World Bank’s International De-velopment Association for theproject. It previously received a loanfrom the Asian Development Bank forthe program.Source: HRW

News in SHP

Documents

2002 TCDC Training Wor kshop on Small Hydro · PDF file2002 TCDC Training Wor kshop on Small Hydro Power TCDC ... identified close to 100 small-scale hydropower project potentials