Embed Size (px)
Citation preview
Kn
igh
t P
iéso
ld
1
Low Impact Hydro Workshop
Development & Construction Issues
Norm Bishop
Kn
igh
t P
iéso
ld
2
Knight Piésold Consulting
Small Hydro is a Knight Piesold Core practice.
First hydro project in 1926.
Focused on Conservation & Renewable Project Solutions 25+ years.
Not a “Big Engineering Company”; Employee Owned, Global & Responsive!
“FANi Concept”-Focused, Adaptive, Nimble, Innovative
Community & People Oriented
Sound Management, Science, Engineering, Economics
Focused on Run-of-River; Low Cost, Low Impact Approach
Currently 10+ Under Construction;
60+ Various Development Stages.
Kn
igh
t P
iéso
ld
3
Knight Piésold ConsultingOne-Stop-Shop
Screening
Site Identification
Environmental baseline & Permitting
Feasibility and Detailed Design (all Science & Engineering aspects)
Project Management and Construction Supervision
Construction Teaming & Partnering
Global Procurement & Sourcing Lower Competitive Pricing
Low Interest Financing
Industry Knowledge
Financial Consulting Reengineering to Shorten Schedule & Lower Cost
Partnering & Equity Involvement
Global Sourcing
Kn
igh
t P
iéso
ld It’s a Business!Financiers need repayment confidence
Owner’s want no (less) risk
Owner’s want least life cycle costs to maximize benefits.
Project configuration flexibility; gives construction team opportunity to give reduced cost. Fixed configuration equals higher implementation costs.
Get cost estimates right!4
Kn
igh
t P
iéso
ld
5
Think “At Home” JobsScientific Studies
Engineering
Transportation
Equipment Manufacturing & Installation
Construction
Operations & Maintenance
Training
Community Energy & Revenue
Kn
igh
t P
iéso
ld
6
The Common Issues Sustainable Business Social Acceptance &
Community Image Environmental Impacts &
Mitigation Studies, Studies, Studies Consultation & Licensing Over Engineering Legal, Water Rights & Land
Ownership Insurance & Bonding Controlling Pre-Financial
Closing Cost
Equity & Financing & Incentives
Financial Closing Contract Management &
Implementation Controlling Budget &
Schedule Risk Management Project Turnover Project Operation &
Maintenance “The Low Water Year(s)”
Kn
igh
t P
iéso
ld
7
Keep it simple? Simple Works!
Hydro Entrepreneur
Kn
igh
t P
iéso
ld
8
Rule-Project viability is always based on a “good” “reliable” cost estimates.
Engineers that are the “high bidder” reduce project
viability.
Kn
igh
t P
iéso
ld
9
Traditional Project Delivery Reconnaissance
Conceptual Assessment
Exemption or not
Feasibility/Environmental Assessment (EA)
Licensing & Permitting
Project Development-Engineering
Financing
Financial Closing
Construction Bidding
Project Development-Construction
Project Development-Commissioning
Operation
Post Operation Support/Rehabilitation
Relicensing & Permitting
Kn
igh
t P
iéso
ld
10
Modern Project Delivery Site Screening
Exemption, or not
Site Identification
Feasibility/Environmental Assessment (EA)
Licensing & Permitting
Basic Design
EPC Bid Package & Price
Equity & Financing
Financial Closing
EPC Implementation
EPC Turnover
Operation
Post Operation Support/Rehabilitation
Relicensing & Permitting
Modern Project Delivery varies from project to project-
Generally seeks to save time and money
Kn
igh
t P
iéso
ld
11
Rule-Shortening construction schedules
result in real cost savings. Unrealistic construction
schedules cost significant money.
“BALANCE”!
Kn
igh
t P
iéso
ld
12
Holistic Approach Mitigates Risk
Kn
igh
t P
iéso
ld
13
Rule-”Risks” Cost Money,Understand when you shift risk to a private entity-this is added project cost. You
are going pay for it one way or another.
Kn
igh
t P
iéso
ld
14
Financial Risk MitigationProject Framework
& Comprehensive Legal Agreements
Control Project Delivery (Cost, Schedule, Result)
Project Management
Claims Management
Indemnify & Insure Against Risks Political
Currency
Force Majeure
Liability
Other
Independent Quality Control & Inspection
Kn
igh
t P
iéso
ld Construction Risks & Costs“Engineering”“Over Engineering”Unnecessary
Specification Requirements
Insurance & BondingControlling Financial
Closing Cost-when & what changes until NTP
Equity & Financing & Incentives
Adversarial Contract Management & Implementation
Controlling Budget & Schedule
Risk ManagementProject TurnoverEarly Completion
Incentives. Project Operation &
Maintenance15
Kn
igh
t P
iéso
ld
16
Rule-Traditional & over engineering costs money,
avoid unneeded requirements
Kn
igh
t P
iéso
ld
17
Team Concept Mitigates RiskOwner/Developer
Legal Advisor
Community Advisor
Financial Advisor
Licensing Advisor
Contractor
Engineer
Accountant
O & M Leadership
Kn
igh
t P
iéso
ld
18
Rule-Implementation Teamwork Saves Money
Kn
igh
t P
iéso
ld
19
NGO, Community & Native People Involvement
Plutonic Power – Montrose Creek Project
Kn
igh
t P
iéso
ld
20
Innovative Science & Engineering
Understand the Issues & Solve: Hydrology Studies
Intakes
Penstocks
Powerhouses
Environmental and Socioeconomic Issues
Community & Indian Nation Involvement
Kn
igh
t P
iéso
ld
21
Rule-Lawyer’s Cost Money,
Adversarial Behavior/Conflict’s Cost
Money
“Stick versus incentive”
Kn
igh
t P
iéso
ld
22
Legal & RegulatoryPart of Project Development!Public Process!Expensive & Frustrating ProcessesProject Exemption are Least ExpensiveGood FERC Relationships EssentialGood Federal, State & Local Agency
Relationships EssentialMeet Deliverables, Be Prompt, Friendly
& Courteous Always!
Kn
igh
t P
iéso
ld
23
Rule-Understand what makes up your project costs-
soft & indirect costs add-up!-Can be more than 1/3 of
project costs.
Kn
igh
t P
iéso
ld
24
Some Insights into Successful Projects
Kn
igh
t P
iéso
ld
25
Get the Project Foot Print Right
Listen & Respect All Stakeholders Ideas
Small Project are Not Big Projects
Make Best Value Tradeoffs Run of River; Low Impact Hydro
Consider a Smaller Installed Capacity, that “Shares” Water
Water Deliveries Systems (pipeline & canals) Can Result in Nice Energy Recovery Small Hydro Opportunities
Put Ideas on Paper (Recycled Paper!); Use Scale Models to Get It Right.
Kn
igh
t P
iéso
ld
26
Rule-Project changes after construction NTP result in uncontrollable, added cost.
Kn
igh
t P
iéso
ld
27
Rule-Team Planning before NTP Saves Money.
“And Why do I need to spend this money?”
Kn
igh
t P
iéso
ld
28
Innovative Science & Engineering
Physical Hydraulic
Models
Computer Models
Site Investigations
Kn
igh
t P
iéso
ld
29
Innovative Science & Engineering Intakes
Typically the “Achilles Heel” of a hydro scheme
Often located on high energy stream system with heavy sediment bedload.
Typically requires expensive and often ineffective desanders
Innovative cost-effective designs: Coanda (Aqua-Sheer) Screens
Inflatable Rubber Dams + Vortex Desander
No impoundment structure & subterranean options
Renewable Power Corp. – McNair Creek Project
Kn
igh
t P
iéso
ld
30
Coanda Screen Intakes
Kn
igh
t P
iéso
ld
31
Coanda Screen Intakes
Renewable Power Corp. – McNair Creek Project
Cloudworks Energy Inc. - Fire Creek Project
Kn
igh
t P
iéso
ld
32
Rubber Weir Intakes
Innergex. – Rutherford Creek Project
Kn
igh
t P
iéso
ld
33
Intake Model Testing
Vortex Desander – combined
with Instream Flow
Requirements (IFR)
Kn
igh
t P
iéso
ld
34
Innovative Science & Engineering
Penstocks One of the most expensive components
Penstock designed to minimize Capital cost: Routing – Buried, Partially Buried vs Surface
Soil restraint vs Anchor blocks
Latest Construction material:• Steel
• HDPE – “Weholite”
• Glass Reinforced Plastic (GRP)
Configuration
Kn
igh
t P
iéso
ld
35
Penstocks – Weholite (HPDE)
Innergex - Rutherford Creek Project
Kn
igh
t P
iéso
ld
36
Penstocks – Steel
Innergex - Rutherford Creek Project
BC Hydro – Aberfeldie Redevelopment Project
Kn
igh
t P
iéso
ld
37
Penstocks – Buried
Renewable Power Corp. – McNair Creek Project
Kn
igh
t P
iéso
ld
38
Penstocks – Surface
Pipe bridge
EPCOR – Miller Creek Project
Kn
igh
t P
iéso
ld
39
Innovative Science & Engineering
Powerhouses Powerhouses house the equipment
Challenging foundation conditions
Aesthetic appeal becoming more and more important
Innergex – Rutherford Creek Project
Plutonic – East Toba Project
Kn
igh
t P
iéso
ld
40
Rule-Equipment is 1/4 to 1/2 of Project Cost
Cost & schedule competition is key
Consider more than one equipment type.
Kn
igh
t P
iéso
ld
41
High Head Powerhouses
Pelton or Francis turbines
By-pass valves for Francis units
Automated head-level control
Cloudworks - Fire Creek Project
Kn
igh
t P
iéso
ld
42
Low & Medium Head Powerhouses
Kn
igh
t P
iéso
ld
43
Mitigation Measures
Whitewater Kayaking
Park
Enhanced Hiking Trails
Fisheries Enhancement Channels
Innergex –
Rutherford
Creek Project
Renewable Power Corp. –
McNair Creek Project
Kn
igh
t P
iéso
ld
44
Innovative Science & Engineering
Native Peoples & First Nations Involvement (Aboriginal) Early consultation essential
“Social Licence” to exist
Look for training and employment opportunities
Plutonic Power - Montrose Creek Project
