FEASIBILITY ANALYSIS OF SMALL HYDROPOWER

PROJECT USING RETSCREEN DECISION SUPPORT

SYSTEM: A CASE STUDY
A thesis submitted toward partial fulfilment
of the requirements for the degree of
Master of Engineering in
Water Resources and Hydraulic Engineering
Course affiliated to Faculty of Engineering & Technology
Jadavpur University

Submitted by
PRIYABRATA ADHIKARY
ROLL NO.: M6WRP14-01

Under the guidance of

DR. PANKAJ KUMAR ROY
Associate Professor,
School Of Water Resources Engineering,
Jadavpur University
School of Water Resources Engineering
M.E. (Water Resources & Hydraulic Engineering) course affiliated to

Faculty of Engineering and Technology

Jadavpur University
Kolkata-700032
India
2014

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

Faculty of Engineering and Technology
Jadavpur University
Kolkata, India
_________________________________________________________________

CERTIFICATE OF RECOMMENDATION
This is to certify that the thesis entitled FEASIBILITY ANALYSIS OF SMALL
HYDROPOWER PROJECT USING RETSCREEN DECISION SUPPORT SYSTEM: A
CASE STUDY is bonafide work carried out by PRIYABRATA ADHIKARY under
our supervision and guidance for partial fulfilment of the requirement for Post
Graduate Degree of Master of Engineering in Water Resources & Hydraulic
Engineering during the academic session 2013-2014.

------------------------------------THESIS ADVISOR
Dr. Pankaj Kumar Roy
Associate Professor
School of Water Resources Engineering
Jadavpur university,
Kolkata-700 032

------------------------------------DIRECTOR
Prof. (Dr.) Asis Mazumdar
School of Water Resources Engineering
Jadavpur University,
Kolkata-700 032

------------------------------------DEAN
Faculty Council of Interdisciplinary Studies, Law and Management
Jadavpur University,
Kolkata-700 032

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

Faculty of Engineering and Technology
Jadavpur University
Kolkata, India

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

-------------------------------------------------------------------------------------------------------------------------------------------

** Only in case the thesis is approved.

iii

DECLARATION OF ORIGINALITY AND COMPLIANCE OF ACADEMIC ETHICS

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

SIGNATURE:

DATE:

iv

ACKNOWLEDGEMENT
_________________________________________________________________
I express my sincere gratitude to my supervisor Dr. Pankaj Kumar Roy
Associate Professor, School of Water Resources Engineering, Jadavpur
University, under whose supervision and guidance this work has been carried
out. It would have been impossible to carry out this thesis work with
confidence without his wholehearted involvement, advice, support and
constant encouragement throughout.
I also express my sincere gratitude to Prof.(Dr.) Asis Mazumdar, Director,
School of Water Resources Engineering, Jadavpur University; Dr. Debasri Roy,
Associate Professor, School of Water Resources Engineering, Jadavpur
University; Prof.(Dr.) Arunabha Mazumdar, Professor-Emeritus, School of
Water Resources Engineering, Jadavpur University; Shri Subhasish Das
Assistant Professor, School of Water Resources Engineering and Shri Rajib Das,
Assistant Professor, School of Water Resources Engineering for their valuable
suggestions. Thanks are also due to all the staffs of School of Water Resources
Engineering and the Regional Centre, NAEB, Jadavpur University for their help
and support.
I also express my sincere gratitude to Prof.(Dr.) B. Majumdar, Power
Engineering Department, Jadavpur University for his valuable guidance.
Last but not the least; I am also grateful to my family for the earnest support
and dedicate my M.E. thesis to them.

Date: May, 2014

Place: S.W.R.E., Jadavpur University

-------------------------------PRIYABRATA ADHIKARY
(Roll No. : M6WRP14-01)

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

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

6. RETSCREEN BASED FEASIBILITY ANALYSIS (CASE STUDY PROJECT)....44

6.1. Start Sheet..45
6.2. Energy Model Sheet.46
6.3. Cost Analysis Sheet48
6.4. GHG Emission Reduction Analysis Sheet49
6.5. Financial Analysis Sheet.50
6.6. Sensitivity and Risk Analysis Sheet.51
6.7. Results & Discussion...53
6.8. Project Optimization59
7. CONCLUSION.60
CONCLUSION..60
FUTURE SCOPE..62
REFERENCES.63
ANNEXURE - I - RETScreen Small Hydro Project Analysis Formulae.66
ANNEXURE - II - Small Hydropower Development Training81
ANNEXURE - III - Small Hydropower Site Visit..82
ANNEXURE - IV - Published International Journal Papers...84
ANNEXURE - V RETScreen Analysis Worksheet.....85

CHAPTER-1
INTRODUCTION

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

Figure-1.1: Hydro power projects in India

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

Rs2.5/kWh (i.e. USD55/MWh approx.) which is relatively low, compared to others and
thus competitive. Along with the above mentioned parameters, Environmental Impact
Assessment (EIA) is another major aspect that has to be taken care of, wherein the
pros and cons of setting up of a plant (or any industry), on the surrounding
environment and society are to be considered.
1.2 Literature Review
Lea Kosnik, (Energy Policy, Elsevier, 2010) discussed the potential for small scale
hydropower to contribute to US renewable energy supplies, as well as reduce current
carbon emissions, was investigated. It was discovered that thousands of viable sites
capable of producing significant amounts of hydroelectric power were available
through out the United States. The primary objective of his research was to determine
the cost-effectiveness of developing these small scale hydropower sites. Just because
as it has the necessary topographical features to allow small scale hydropower
development, does not mean that it, should be pursued from a cost-benefit
perspective, even if it is a renewable energy resource with minimal effect so the
environment. This RETScreen based feasibility analysis finds that while the average
cost of developing small scale hydropower is relatively high, there still remain hundred
so sites on the low end of the cost scale that are cost-effective to develop right now.
C. Alonso-Tristn et al., (Renewable and Sustainable Energy Reviews, Elsevier, 2011)
discussed a small hydropower plant in Spain in his study, from an energetic and
economic perspective. The viability of the facility was examined using the freeware
software RETScreen. Calculated and standard operational data were compared,
thereby demonstrating the feasibility of the project from all points of view. The study
highlighted the growing interest in renewable energies.
Adhikary et. al. (IJERT, 2013) compared as well as discussed the software tools for the
planning and development of small hydropower projects (SHPP) applicable especially
for Indian scenario. The main emphasis is on small scale hydropower resource
assessment computer tools and methodologies corresponding to a preliminary or prefeasibility and feasibility study level in India. The reviewed tools including RETScreen
vary from simple initial estimates to quite sophisticated software. The integration of
assessment tools into Geographic Information System (GIS) environments has helped
in the strengthening of the evaluation of the water power potential in the case of the
spatial variability of different factors affecting it. However, a reliable assessment of
real SHPP feasibility implies some physical site surveying also, but this traditional
assessment can be greatly facilitated using GIS techniques and DSS tools in India.

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

L.M.K. Melvin (M.S. Thesis, Department of Mechanical & Industrial Engineering,
University of Manitoba, 2004) discussed about feasibility and economic study that was
conducted to observe the viability of a proposed small hydropower station at
Manitoba, USA thru RETScreen.
Jeffrey Andrew Tuhtan (M.S. Thesis, Water Resources Engineering and Management
Department, Universitt Stuttgart, 2007) discussed that as the world economy grows
electricity demand grows along with it. In considering the possible future energy
sources, hydropower provides several advantages: it is highly efficient, can be easily
incorporated into multipurpose projects, has a low annual maintenance cost and a
long life span. Although industrialized nations have already exploited most of their
large-scale hydropower potential, there remains much room to construct large
hydropower plants in the developing world. Small hydropower however, still has a
place in both. The largest economic challenge facing a small hydropower project is the
high initial investment cost relative to competing fossil fuel sources. The Thesis
provides a new type of preliminary costing methodology which first optimizes
preliminary design components thru RETScreen of a small hydropower plant based on
a limited set of site-specific data and then uses stochastic simulation to determine the
cost uncertainty of four costing categories and the resulting net present value (NPV) of
the project.
L Olawalemi OGUNLEYE (M.E. Thesis, Potchefstroom Campus, North-West University,
2008) discussed that energy is central to economic development. It has been
established that there is a clear correlation between energy consumption and living
standards. Nigeria is a country of very industrious and enterprising people. However,
due to non availability of adequate energy in the country, especially in the remote, off
grid locations, the entrepreneurial inclination of the average Nigerian living in these
locations has been largely stunted. Over the years, successive governments in the
country, in realisation of the pivotal role of energy in national development, have
explored various options to improve energy supply and availability, but the situation
has not experienced any remarkable improvement. This has forced many businesses
and households to resort to self provision through generators, often at exorbitant
costs. This research work addresses the challenge of energy in remote, off grid
locations by appraising the techno economic potential of renewable energy, using
Obudu Ranch as a case study. This ranch is the foremost tourism resort in Nigeria, and

has played host to a number of international events over the years. Presently,
electricity is being generated through the use of diesel powered generating sets. The
adjoining communities are currently without electricity, although a few of the
residents have acquired generators for self provision, mostly for their domestic use.
Aside the high cost associated with this, the discharge of noxious contaminants into
the atmosphere is undesirable. Further, the ranch was visited to establish hands-on,
the existing renewable energy sources. A trade-off of these sources was carried out
with reference to a number of relevant evaluation parameters to identify the most
suited option for addressing the energy challenge. A comparative analysis thru
RETScreen of this selected source was then made to establish its techno economic
potential against the existing source of power generation- diesel powered generating
sets. Conclusively, the findings and recommendations of this research effort, if well
implemented, will be beneficial to the ranch, the adjoining communities and other
relevant stakeholders.
Reyhan Mutlu (M.S. Thesis, The Graduate School of Natural and Applied Sciences,
Middle East Technical University, 2010) discussed how hydropower helps countries to
meet their energy needs in an economically, environmentally, and socially sustainable
way while saving money and increasing energy security and self-reliance. Being one of
the fastest developing countries, electricity demand of Turkey has been increasing and
is expected to increase in the future. Untapped hydropower potential is among the
prospective alternative resources to supply this demand. Developing a hydropower
project requires a great deal of expertise in multiple disciplines. This study shows how
RETScreen can be used in assessing the economical feasibilities of the current
formulation for Niksar HEPP and its alternative schemes.
Eri A. Boye (M.S. Thesis, Department of Environmental Engineering, University of
Iceland / Department of Natural Resource Sciences, University of Akureyri, 2011)
discussed about how The Victoria Capitol Regional District (CRD) operates several
pressure reducing facilities (PRF) as part of their potable municipal waterways. A
feasibility and economic study was conducted to observe the viability of a proposed
hydropower station at the Humpback PRF also thru RETScreen.
1.3 The Objective of study
The use of clean energy technologies such as Small Hydropower Project - that is,
energy efficient and renewable energy technologies (RET) has increased greatly over
the past several decades. Technologies once considered quaint or exotic are now
commercial realities, providing cost-effective alternatives to conventional, fossil fuelbased systems and their associated problems of greenhouse gas emissions, high
operating costs, and local pollution. In order to benefit from these technologies,
potential users, decision and policy makers, planners, project financiers, and
equipment vendors must be able to quickly and easily assess whether a proposed
clean energy technology project is viable. This analysis allows for the minimum
investment of time-cost-effort and reveals whether a potential clean energy project is

sufficiently promising to merit further investigation or not. The RETScreen

International Clean Energy Project Analysis Software is the leading tool specifically
aimed at facilitating pre-feasibility and feasibility analysis of clean energy technologies.
The core of the tool consists of standardised and integrated project analysis software
which can be used worldwide to evaluate the energy production, life-cycle costs and
greenhouse gas emission reductions for various types of proposed energy efficient and
renewable energy technologies. Each model also includes integrated product, cost and
weather databases and a detailed online user manual, all of which help to dramatically
reduce the time and cost associated with preparing pre-feasibility studies. The
RETScreen Software is perhaps the quickest and easiest tool for the estimation of the
viability of a potential clean energy project. Since RETScreen International contains so
much information and so many useful features, its utility extends beyond prefeasibility and feasibility assessment. Someone with no prior knowledge in wind energy,
for example, could gain a good understanding of the capabilities of the technology by
reading through the RETScreen Softwares built-in Online Manual. The RETScreen
Software is very flexible, letting the user focus on those aspects that are of particular
interest to him or her.
1.4 The Scope of study
Although there are several hydro scheme of every scale in India, it is far behind of
developing the full hydropower potential. In recent years, several private companies
along with governmental departments have engaged in the energy business. However,
due to legislative limitations, these companies had to major on developing small
hydropower which shows the importance of it. In this study it is aimed to give a
general idea about the feasibility assessment of small hydropower projects in India.
The (3x2MW) Malhanwa Small Hydropower site is located in Malhanwa village of
Tribeniganj Block in Supaul district of Bihar which is about 20km from Pipra-Tribeniganj
road. This project feasibility analysis is described here as a case study. RETScreen-Small
Hydro Software is selected to manage this since it is capable of performing desired
computations and developed by highly experienced group of planners and engineers
for saving time-cost-effort remarkably.

CHAPTER-2
HYDROPOWER PROJECT

2.1 History of Hydropower

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

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

2.3 Hydropower in India

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

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

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

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

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

2.5 Working principle of hydropower plant

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

Figure-2.1: Hydropower project scheme

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

2.6 Advantages of hydropower plant

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

2.7 Disadvantages of hydropower plant

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

2.8 Steps for implementation of Renewable Energy (Hydropower) Projects

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

Figure-2.2: Hydropower project implementation process

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

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

Figure-2.3: Hydropower project management

CHAPTER-3
SMALL HYDROPOWER PROJECT
(A NEW CONCEPT IN SUSTAINABLE DEVELOPMENT)

3.1 Definition of Small Hydropower

As the name suggests, small hydro is the smaller version of large hydro plants.
According to Central Electricity Authority (CEA) of India and Bureau of Indian Standards,
small hydropower stations are classified as follows:
a) Depending on capacity:
# Pico plant: power output capacity from 5 kw to 50 kW
# Micro plant: power output capacity from 51 kw to 100 kW
# Mini plant: power output capacity ranging from 101 kW to 1000 kW
# Small plant: power output capacity ranging from 1001 kW to 25000 kW (or 25 MW)
b) Depending on head
# Ultra low head: below 3m
# Low head: less than 30m
# Medium head: between 30 and 75m
# High head: above 75m
c) Depending on project scheme
# Run-of-River type projects
# Canal fall type projects
# Dam-Toe type projects
# Pumped Storage type projects
Small hydropower generation plants can be classified according to their function and
based on source of water:
Run-of-river plants are those that utilize the instantaneous river flow without a dam. A
weir or a barrage is constructed across the river simply to raise the water level slightly
and divert water into a conductor system for power generation. Such a scheme is
adopted in the case of a perennial river.

Figure-3.1: Run of River type Small Hydro Project

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

Figure-3.2: Canal based type Small Hydro Project

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

Figure-3.3: Dam toe type Small Hydro Project

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

Figure-3.4: Pumped storage Small Hydro Project

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

3.2 Historical Background of Small Hydropower

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

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

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

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

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

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

3.6 Advantages of Small Hydropower

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

3.7 Disadvantages of Small Hydropower

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

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

Figure-3.5: Small Hydro Project Implementation Phases

CHAPTER-4
PRE-FEASIBILITY REPORT
(A CASE STUDY)

4.1 Project Location

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

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

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

4.2 Pre-feasibility Report Summary

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

Table-4.a: Pre Feasibility Report Summary

4.3 Project Hydrology

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

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

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

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

# Maintenance: That may be required during the construction phases. Some

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

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

CHAPTER-5
RETSCREEN INTERNATIONAL
(SMALL HYDRO ANALYSIS SOFTWARE)

5.1 Small Hydro Assessment Tools An Overview

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

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

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

5.2 RETScreen - Small Hydro Project Analysis Software

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

Figure-5.1: Steps for RETScreen Analysis

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

accurate information is typically required while for a Feasibility analysis, more

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

CHAPTER-6
RETSCREEN BASED FEASIBILITY ANALYSIS
(EVALUATION OF THE CASE STUDY PROJECT)

RETScreen based Feasibility Analysis - A Case Study

Within the scope of this ME thesis, feasibility studies are completed for (3x2MW)
Malhanwa Small Hydropower Project at Supaul, Bihar. The application of this tool for
the proposed SHPP case study will also demonstrate its capacity to perform feasibility
studies across the world. Six worksheets (attached in Annexure-V) are provided in the
small hydropower project RETScreen file:
# Start
# Energy Model
# Cost Analysis
# GHG Emission Analysis (Optional)
# Financial Analysis
# Sensitivity Analysis and Risk Analysis (Optional)
6.1 Start Sheet
The start sheet of the RETScreen for the application of Malhanwa SHPP project is
presented in Figure. Grid type can be central grid, isolated grid or off-grid. Since the
electricity generated in Malhanwa SHPP is given to the BSHPC Ltd Network, hence
central grid is selected. There are two analysis types. It is selected according to the
extent of the available information. Method 2 requires more detailed information than
Method 1 and it is preferable to use Method 2 if sufficient amount of information is
available. If not, Method 1 can be selected but in this case cost analysis, emission
analysis, financial and risk analyses become unavailable. For Malhanwa SHPP case,
Method 2 is selected. Heating value is a measure of energy released when fuel is
completely burned. For hydropower projects, this value is important only if emission
analysis will be carried out. In the site reference conditions section of the start sheet,
the user enters the climatic data (such as air temperature, relative humidity, wind
speed, etc.) of the project area or copy them from the RETScreens climate database.
These data are displayed when Show data is ticked. The climate data are essential
for solar or wind power projects, but not much necessary for hydropower projects.

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

6.2 Energy Model Sheet

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

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

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

approximately at 35 % and 70 % of the rated flow, respectively. The advantage of using

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

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

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

Since there are three turbines in Malhanwa SHPP, availability was taken as 96 %. The
generator efficiency is taken as 96.5% which is within standard range of values.
Available flow adjustment factor is intended to allow the user to adjust the capacity
factor and electricity exported to the grid. This factor is primarily used for sensitivity
analysis in order to observe the effects of capacity factor and electricity generated on
the financial summary. This factor was entered as 1.0 in this study, meaning that the
flow values were not changed. Another input to be entered by the user in the energy
model sheet is the electricity export rate, which is used by the software to calculate
the income from electricity sale. Here we have considered $55 / MWh i.e Rs 2.5/KWh
(approx).
6.3 Cost Analysis Sheet
After filling the energy model sheet, the software directs the user to complete the cost
analysis sheet. RETScreen offers two types of cost estimations. The first one is detailed
cost estimation method. This cost estimation method is carried out in the cost analysis
sheet. The user can enter the pre-calculated quantities and unit costs for specific items.
This estimation method has two other sub methods in itself. The user can select one of
them considering the level of detail available for cost calculation. More detailed cost
estimations can be made with the second sub method. The sub method to be used is
selected at the beginning of the cost analysis sheet. This is used in our study.

Figure-6.4: Project Cost Analysis Summary

The second cost estimation method offered by RETScreen is hydro formula costing
method. This method is available in the tools sheet. The hydro formula costing
method tool estimates the project costs using the empirical formulae derived from the
costs of numerous completed small hydro projects. Hydro formula costing method
uses the projects completed in Canada as the source for empirical formulae. Therefore,
the cost estimations are applicable for Canada. However, RETScreen enables the user
to enter the local conditions through cost ratios. These ratios should carefully be
calculated since the cost estimations could vary greatly with different cost ratios. The
total initial costs calculated by hydro formula costing method should be manually
entered into one of the cost item listed in the cost analysis sheet.
There are also annual costs. Annual costs include operation and maintenance costs,
land lease and resource rental, property taxes, insurance premium, parts and labor,
GHG monitoring and verification, community benefits, and general and administrative
expenses. Generally 0.2 % of the total investment cost can be allocated as operation
and maintenance costs. Considering the other sources of annual costs such as labor
cost or insurance premium, 0.4 % of the total investment cost is used for total annual
costs in this study. It should be noted that interest and depreciation costs are not
accepted as annual costs by RETScreen. Periodic cost of a power plant is the renewal
costs of electromechanical equipment. The total renewal cost for Malhanwa SHPP is
taken as 50 % of the electromechanical equipment cost in the 35th year as suggested.
6.4 Emission Analysis Sheet
RETScreen does not compute any environmental or social costs. The emission analysis
sheet allows the user to compare the greenhouse gas emissions of the project with
that of a conventional power plant.
United Nations Environment Programme (UNEP) recognizes climate change as a major
global challenge that will have significant and long lasting impacts on human wellbeing and development. The main drivers of climate change are anthropogenic
greenhouse gas (GHG) emissions, especially CO2. GHG emissions are mainly produced
by burning of fossil fuels. On the other hand, hydropower plants produce very small
amount of GHGs when compared to other energy options. The source of GHG
emissions in hydropower plants is the rotting of organic matter from the vegetation
and soils flooded when the reservoir is first filled. By offsetting GHG emissions from
gas, coal and oil fired power plant, hydropower can help slow down global warming.
Studies have shown that development of even half of the worlds economically feasible
hydropower potential could reduce GHG emissions by about 13 %. Furthermore,
hydropower plants do not emit any air pollutants. A coal-fired plant can emit 1000
times more SO2 (main cause of acid rain) than a hydropower plant when the fuel
required to build the hydropower plant is taken into account. Increased utilization of
hydropower plants can help reduce emissions of SO2 as well as other air pollutants like
nitrous oxides, thus leaving a cleaner air to future generations and minimize life losses
which are estimated at 2 million each year.

Figure-6.5: Emission Analysis Summary (GHG Emission Analysis Worksheet)

Heating value reference is required for emission analysis only. Both IMP and RETScreen
can be used to evaluate energy production. However, RETScreen has costing, risk,
emission reductions and economical evaluation features more than IMP.
6.5 Financial Analysis Sheet
The financial parameters entered to the software are given in Figure. The following
information is used:
# Hydropower plants do not consume fuel to generate electricity. Fuel is used only in
the construction period to run the construction machinery. Therefore the effect of this
rate can be assumed to be negligible. Fuel cost escalation rate is taken as 0.0 %.
# Inflation rate is taken as 5.0 %
# Discount rate is taken as 10.0 %
# Project life is taken as 35 years
# 70 % of the total cost is assumed to be paid from the loans taken from the banks
with an interest rate of 10 %. This amount is to be paid back in 9 years.
# Depreciation method is selected as straight line.
The outputs of the financial analysis include project costs and income summary,
financial viability parameters, yearly cash flow table and cumulative cash flow graph.

Figure-6.6: Project Cash Flow Analysis Graph

Projects are called feasible when benefit-cost ratio is greater than 1. The financial
analysis of the project indicates that the project is profitable. As can be seen in Figure,
Benefit-Cost Ratio is calculated as 2.17 for export rate of US$55.

Figure-6.7: Project Financial Viability Summary

Therefore, (3x2MW) Malhanwa SHPP project is worth investing. As can be seen in
Figure, cumulative cash flow is negative until the 8th year. After the 9th year it turns
positive meaning that the investor starts making profit.
6.6 Sensitivity and Risk Analysis Sheet
The RETScreen Sensitivity and Risk Analysis Models, found in the Sensitivity and Risk
Analysis worksheet of the RETScreen Software, help the user estimate the sensitivity of
important financial indicators in relation to key technical and financial parameters. This
worksheet contains two main sections: Sensitivity Analysis and Risk Analysis. Each
analysis provides information on the relationship between the technical and financial
parameters and the financial indicators, showing the parameters which have the
greatest impact on the financial indicators. Both the sensitivity and the risk analyses
are optional, and the related inputs or outputs do not affect results in other
worksheets. The Sensitivity and Risk Analysis worksheet varies slightly from one Clean
Energy Technology Model to the next, reflecting the different key parameters that are
important to each technology. Nevertheless, all share a common underlying algorithm.
The Sensitivity Analysis portion of this model consists of a series of tables, similar to
the one shown in Figure, which show the effect of varying a pair of input parameters
on the financial feasibility indicators. This method is relatively straightforward.

Figure-6.8: (3x2MW) SHPP Project Yearly Cash Flow Analysis

6.7 Results and Discussion:

In Start Worksheet of the RETScreen we get the project information and site reference
conditions of Malhanwa SHP project at Supaul, Bihar.

Figure-6.9: Start Worksheet (3x2MW Malhanwa SHPP, Supaul, Bihar)

In Energy Model Worksheet we specified parameters describing the location of the
energy project, the type of system used in the base case, the technology for the
proposed case, the loads (where applicable), and the renewable energy resource (for
RETs). In turn, the RETScreen Software calculates the annual energy production or
energy savings. Often a resource worksheet (such as the Hydrology and Load
worksheet) or an Equipment Data worksheetor bothaccompanies the Energy
Model worksheet as sub-worksheet(s). It gives the FDC & Turbine Efficiency Curves.

Figure-6.10: Energy Model Worksheet (3x2MW Malhanwa SHPP, Supaul, Bihar)

Figure-6.11a: Flow Duration Curve (3x2MW Malhanwa SHPP, Supaul, Bihar)

Figure-6.11b: Turbine Efficiency Curve (3x2MW Malhanwa SHPP, Supaul, Bihar)

Figure-6.12a: Cost Analysis Worksheet (3x2MW Malhanwa SHPP, Supaul, Bihar)

Figure-6.12b: Hydro Formula Costing Method (3x2MW Malhanwa SHPP, Supaul, Bihar)
Even with very approximate data we get a project cost by RETScreen - Hydro Formula
Costing Method that is within +40% of the pre-feasibility stage estimate hence viable.

Figure-6.13: Emission Analysis Worksheet (3x2MW Malhanwa SHPP, Supaul, Bihar)

Emission Analysis Worksheet determines the annual reduction in the emission of
greenhouse gases stemming from using the proposed technology in place of the base
case technology. The user has the choice between performing a simplified, standard or
custom analysis, and can also indicate if the project should be evaluated as a potential
Clean Development Mechanism (CDM) project. RETScreen automatically assesses
whether or not the project can be considered as a small scale CDM project to take
advantage of the simplified baseline methods and other rules and procedures for
small-scale CDM projects as shown.

Figure-6.14: Financial Analysis Worksheet (3x2MW Malhanwa SHPP, Supaul, Bihar)

In Financial Analysis Worksheet we specified financial parameters related to the
avoided cost of energy, production credits, GHG emission reduction credits, incentives,
inflation, discount rate, debt, and taxes. From this, RETScreen calculates a variety of
financial indicators (e.g. net preset value, etc.) to evaluate the viability of the project. A
cumulative cash flow graph is also included in the financial summary worksheet. Here
we see that the project is feasible as the B-C Ratio is 2.17 i.e. > 1. The simple payback
period will be 7 years for this project.

Figure-6.15: Sensitivity and Risk Analysis Worksheet (Sample)

6.8 Project Optimisation - RETScreen

Figure-6.16: Cost Optimization (3x2MW Malhanwa SHPP, Supaul, Bihar)

The financial analysis of the project indicates that the project is profitable. As can be
seen in Figure, Benefit-Cost Ratio is calculated as 1.09 for export rate up to US$44 (in
place of US$55).
Therefore, Malhanwa SHPP project is worth investing. As can be seen in Figure,
cumulative cash flow is negative until the 12th year. After the 13th year it turns
positive meaning that the investor starts making profit.

CHAPTER-7
CONCLUSION

CONCLUSION
Hydropower projects offer great opportunities for sustainable development of the
countries. Being the cheapest, domestic, and renewable resource of energy, it
deserves to be high up on the governments investment agenda. It is also a great
market that creates business opportunities for private companies, especially in the
developing countries. RETScreen Clean Energy Project Analysis Software is a decision
support tool developed in order to assist the planners and decision makers in
developing the renewable energy and energy efficient projects at minimum time-costeffort. The software can be utilized worldwide and it reduces the effort, money and
time spent while identifying and assessing potential energy projects and alternatives at
the initial planning stage. In this study, RETScreen is used to evaluate the techno economical feasibilities of the Malhanwa SHPP project. The software makes it a lot
easier to observe the effects of the changes in the project formulation, which could
otherwise take considerable amount of time.
The hydro formula costing method tool in RETScreen uses empirical formulas which
are based on the completed projects in Canada. Therefore, these cost calculations
include uncertainties when used in Canada as well as the other countries. The tuning
parameters such as local manufacture coefficient and labour cost coefficient should
carefully be selected to better estimate the initial costs. The software considers only
economic aspects when calculating total cost of the project. It does not take into
account the environmental aspects. It cannot evaluate environmentally favourable
solutions. The only environmental analysis available in RETScreen is the Emission
Analysis and it can be used to calculate the emissions reduced when a hydropower
project is implemented instead of a conventional thermal plant. Moreover, the
software ignores earthquake, erosion, and sediment problems. If such problems exist
in the project area, the software must be used with caution. The software has some
deficiencies in calculating tunnel and channel costs as well. It uses only the excavation
amounts but does not consider the expropriation costs. Another major drawback of
the software is that few of the hydraulic parameters internally calculated by the
software may be incorrect hence the software must be used with caution. However,
these analyses do not cover the assessment of the environmental effects or social and
cultural issues. In some cases a tunnel section may be preferred to a channel section
even if it is more expensive. As far as the number of trees cut is concerned, tunnel
construction is a better alternative. For earthquake-prone areas, tunnels may be
preferred since tunnels are known to be the most earthquake-resistant structures in a
hydropower scheme. However, a collapse in the tunnel can cost a lot more than a
failure in a channel, and can be more difficult to restore. Long tunnels can also cause
groundwater disturbance and dewatering in some places. During the tunnel
construction, noise and the vibration created by explosions may impact the fauna. On
the other hand, land acquisition costs for channels may be very costly in some regions
or even impossible in cultural and historical sites. Therefore, techno-economic
considerations are not solely enough in planning of hydropower projects. All of the

other aspects should be taken into account starting from the very beginning of the
project development process.
As explained in the previous paragraphs RETScreen has some weaknesses; but it still
can be used in pre-feasibility and feasibility studies, where the cost calculations are
expected to have an accuracy of around 40 %. It takes little time (3 to 6 months) to
learn how to use the software, and when the required data is available, it takes 48 to
72 hours to conduct techno - economical analysis for a hydropower project. Moreover,
when the input parameters of the program are changed, the results are updated
within seconds, which helps to save time. It can be concluded that the decision maker
may benefit from the analysis results of RETScreen software in evaluating various
alternatives of the hydropower project if he or she is informed about all the
weaknesses of the software.
Being one of the fastest growing economies in the world, India needs to develop
energy projects in order to provide the industry with the energy it requires. Significant
amount of electricity is generated in thermal plants using fossil fuel in India. Energy is
an important power in politics. Therefore, countries should try to utilize their domestic
energy resources as much as possible. India has a huge untapped potential in
hydroelectric power. Harnessing this potential should be prioritized in the energy
policy. This will ensure the self reliance of the energy market in India and help to
decrease GHG emissions for a cleaner future. Utilizing the hydropower potential does
not mean that the hydropower plants should be constructed whatever the cost.
Sustainable development of hydropower plants is essential. Technical, economical,
environmental and social aspects of these projects should be carefully assessed.
Legislative and administrative arrangements complying with international standards
should be prepared to guarantee the utilization of resources in an environmentally,
socially and economically sustainable way.
FUTURE SCOPE
Inaccurate design or improper selection of project or any parameter will have high
negative impact on the overall cost and efficiency. Thus it will result in producing less
power at a higher cost-per-watt. Efficient planning and design require advanced
engineering skills and reliable operation requires careful construction with quality
components and their proper maintenance. Small hydropower projects are emerging
as one of the solution for sustainable, green, environment friendly, long term and costeffective source of renewable energy for the future. Hence selecting the appropriate
or optimum small hydropower project and its parameters (site selection, feasible
project selection, project planning and development, renewable energy policy analysis,
maintenance strategy analysis, risk analysis, equipment selection, construction
material selection, supplier or project contractor selection etc.) in which to invest is a
critical task involving different factors and policies. Traditional single criteria decisionmaking approaches cannot handle the complexity of such systems. Multi criteria
methods provide a better and flexible tool.

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Sustainable Energy Reviews, Elsevier, 15, pp. 2729-2735 (2011)
# L.M.K. Melvin: Small Hydro in Manitoba, M.S. Thesis, Department of Mechanical &
Industrial Engineering, University of Manitoba (2004)
# Jeffrey Andrew Tuhtan: Cost Optimization of Small Hydropower, M.S. Thesis, Water
Resources Engineering and Management Department, Universitt Stuttgart (2007)
# L Olawalemi OGUNLEYE: A Techno-economic Appraisal of Renewable Energy in
Remote, Off Grid Locations in Nigeria (Obudu Ranch as a case study), M.E. Thesis,
Potchefstroom Campus, North-West University (2008)
# Reyhan Mutlu: FEASIBILITY STUDY OF A HYDROPOWER PROJECT: CASE STUDY OF
NKSAR HEPP, TURKEY, M.S. Thesis, The Graduate School of Natural and Applied
Sciences, Middle East Technical University (2010)
# Eri A. Boye: A feasibility and economic study into the use of micro hydro power
applications to generate electricity from the Victoria Capital Regional Districts
municipal water facility, M.S. Thesis, Department of Environmental Engineering,
University of Iceland / Department of Natural Resource Sciences, University of Akureyri
(2011)

ANNEXURES

ANNEXURE - I
RETScreen Small Hydro Project Analysis Software Formulae

ANNEXURE - II
Small Hydropower Development Training (A.H.E.C., I.I.T., Roorkee, India)

ANNEXURE - III
Pathri Small Hydropower Project Details
(Site visit conducted by: A.H.E.C., I.I.T., Roorkee, India)

ANNEXURE IV

Published International Journal Papers

(RETScreen - Decision Support System)

International Journal of Engineering Research & Technology (IJERT)

ISSN: 2278-0181
Vol. 2 Issue 6, June - 2013

Indian SHP Project Planning And Development : A Review Of Decision

Support System Tools

Priyabrata Adhikary
Asst Professor - Mechanical, S.V.I.S.T. (WBUT), Kolkata-145

Pankaj Kr Roy
Asst Professor, S.W.R.E., Jadavpur University, Kolkata-32

Asis Mazumdar
Professor and Director, S.W.R.E., Jadavpur University, Kolkata-32

Abstract

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This paper review and compare software tools for

the planning and design of small hydropower
projects (SHP) applicable especially for Indian
scenario. The main emphasis is on small scale
hydropower resource assessment computer tools
and methodologies corresponding to a preliminary
or pre-feasibility study level in India. The reviewed
tools vary from simple initial estimates to quite
sophisticated software. The integration of
assessment tools into Geographic Information
System (GIS) environments has helped in the
strengthening of the evaluation of the water power
potential in the case of the spatial variability of
different factors affecting it. However, a reliable
assessment of real SHP feasibility implies some
physical site surveying also, but this traditional
assessment can be greatly facilitated using GIS
techniques in India. To the best of the authors
knowledge such review paper on Indian SHP
project decision support system tools is absent in
renewable energy literatures due to its assessment
complexity.

to accurately conduct SHP site assessment. Tools

those are applicable for Indian scenario, ranges
from simple first estimates to quite sophisticated
programs. However, a reliable assessment of
techno - economically feasible potential implies
some physical site surveying also. The decisionmaking process [1, 2] regarding the choice of hydro
based renewable energy sources for energy supply
is multidimensional, made up of a number of
aspects at different levels economic, technical,
environmental, and social. Thus the advent of
Geographic Information System (GIS) software has
been of enormous use as a way of capturing the
range of information required, which is discussed
further in this paper. Some decision support system
(DSS) or multi-criteria decision analysis or making
methods (MCDA or MCDM) as MAUT, AHP etc
[3, 4] are intended to select the best choice from a
given set of renewable energy technology (RET)
alternatives. Other DSS methods as ELECTRE,
PROMETHEE etc [5, 6] are based on the idea of
developing a partial order, useful for sorting out
large lists of alternatives down to a short list among
which the decision maker can select. The main aim
of these software tools is to find a rapid and
reasonably accurate means of predicting the energy
output of a particular hydro scheme. These
predictions involve establishing the head and the
flow duration data [7, 8] that give the time
variability of water discharge sufficiently
accurately for capacity sizing of the plants.
Needless to say, the accuracy of hydrological
analysis is crucial for the cost effectiveness of a
hydro scheme. In India, hilly stream catchments
were considered for the assessment of hydropower
potential using spatial tool GIS and a hydrological
model. Prospective sites for SHP development
were determined using remote sensing data. The

Keywords: Hydropower, RETScreen, Homer, GIS, MCDA

1. Introduction
Over the last several decades, a variety of
computer-based assessment tools have been
developed world wide to address this problem and
enable a prospective developer to make an initial
assessment of the techno - economic feasibility of a
project before spending substantial sums of money.
A high level of experience and expertise is required

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application of GIS to the site selection of a small

run-of-river hydropower project by considering
engineering, economic and environmental criteria
and the social impact was also employed. The main
aim of this study was to review publicly available
software tools and interactive Web-based maps
designated for SHP site identification, with the
assessment corresponding to levels from
reconnaissance up to pre-feasibility studies.

power study, development of a flood frequency

curve and fish habitat analysis. It is useful to nonspecialists exploring possibilities for small hydro
development and for consulting engineers who
need preliminary estimates of flood frequency and
energy potential. IMP consists of: Flood Frequency
Analysis Model, Watershed Model, Hydroelectric
Power Simulation Model, Fish Habitat Analysis
Model. It is applicable for India as well as other
countries.

2. Materials and Methods

Figure1: IMP 5.0 Software FFA

RETScreen: This is a Microsoft Office, Excel
based unique decision support tool developed with
the contribution of numerous experts from
government, industry, and academia. The software,
provided free-of-charge, can be used world wide to
evaluate the energy production and savings, costs,
emission reductions, financial viability and risk for
various types of Renewable-energy and Energyefficient Technologies (RETs). The software also
includes product, project, hydrology and climate
databases, a detailed online user manual, and case
studies. The RETScreen Small Hydro Project
Model software can be used world-wide to easily
evaluate central-grid, isolated-grid and off-grid
hydro projects of any SHP size. It is applicable for
India as well as other countries.

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In common practice, a virtual size limit is fixed

for small hydropower plants. It is usually
determined by installed capacity and varies greatly
from a few kilowatts to 10MW in India. Computer
softwares designated for SHP project assessment
can be integrated with or without GIS. Only the
latest computer-based packages have integrated
GIS tools or vice versa. To assess river flow, there
are two main approaches: the flow duration curve
(FDC) and the simulated stream-flow (model)
methods or flood frequency analysis (FFA).
Computer programs intended for modelling hydromechanical equipment (for instance, turbines), such
as Computational Fluid Dynamics (CFD); civil,
geotechnical and other relevant hydropower
engineering; and project cost issues including
detailed design studies, are considered beyond the
scope of this paper and are not discussed.

In general, for the application of GIS for

assessing hydropower potential, several typical
components can be identified [9, 10]:
Step-1: Gathering of river basin hydrological
characteristics and associated attribute information
as spatial GIS data and later using them for broadbased analysis;
Step-2: Development of a DEM for the river
basin using a variety of primary sources as input
data for GIS database development and for later use
in the hydropower potential evaluation;
Step-3: Development of SHP assessment tools
as specialized GIS extensions and integrating them
into GIS systems;
Step-4: Performance of SHP evaluation,
feasibility study and presentation of the results by
GIS tools
Internationally applicable softwares that can
also be used for Indian SHP planning and designing
are briefly discussed below:
IMP 5.0: This is a convenient tool for
evaluating small-scale hydroelectric power sites.
By utilizing Integrated Method for Power (IMP)
combined with the relevant meteorological and
topographical data, in approximately one day of inhouse study, an experienced user can evaluate all
aspects of an un-gauged hydro site. This includes a

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Figure2: RETScreen Software FDC

PEACH 2.0: This is a sophisticated program
and is offered for SHP planning and designing
across the world. The program is designed to take a
developer through all the necessary procedures in

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designing, building and commissioning a small

hydro scheme and analyzing the financial returns
which may be expected. It follows following steps:
Site Data Definition, Project Creation, Project
Design, Plant Design, Economic and Financial
Analysis, Report. The output provides following
details: Site, Project and Design parameter set
definition; Power curve and main results;
Construction costs; Bill of quantities; Cost flows Yearly cash flow; Economic analysis - Economic
analysis graphic results; Financial analysis Financial analysis graphic results. It is applicable
for India as well as other countries.

Green Kenue: This is an advanced hydrological

toolkit within a GIS-enabled modeling environment
and software package. The software package
provides an integrated numerical modeling
environment for hydrological models and 1D
hydraulics and routing models. Green Kenue is
based on the core Kenue, which provides one
unique and shared platform and look-and-feel for
purposes ranging from the development of
advanced cross-field modeling environments to the
design of tailored technical decision support
systems. This software can provide engineering
firms with advanced tools for more precise
hydrologic estimates needed to design small hydro
sites. It is applicable for India as well as other
countries.

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Figure3: PEACH 2.0 Software FDC

Figure4: HydroHelp1.2 Software

HydroHelp 1.2: Microsoft Office, Excel based

HydroHelp series of programs has been developed
to allow engineers to obtain an initial assessment of
a hydro-electric site, with a minimum of site data.
The programs are intended for use by relatively
inexperienced hydro engineers, by providing an
expert guide throughout the project design
process. The programs do not include any
hydrologic or financial analysis. There are
presently 4 programs in the series, all for
developments with surface power plants:
HydroHelp 1.2 for turbine selection.
HydroHelp 2.2 for Francis turbine project.
HydroHelp 3.2 for Impulse turbine project.
HydroHelp 4.2 for Kaplan turbine project.

Figure5: Green Kenue Software

The user starts with program #1 which provides

the user with the best turbine suitable for the flow,
head and number of units desired in the power
plant. Selection is based on more than simple
suitability. The user then proceeds to the next
program, #2 for Francis turbines, #3 for impulse
turbines or #4 for Kaplan turbines, based on the
type of unit selected in the first program. These
programs guide the user through the design process
as to the options available and the best choice. It is
applicable for India as well as other countries.

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HOMER: It is a computer model that assists in

the design of micro-power systems and facilitates
the comparison of power generation technologies
across a wide range of applications. HOMER
models a power systems physical behavior and its
lifecycle cost, which is the total cost of installing
and operating the system over its life span.
HOMER allows the designer to compare many
different RET design options based on their
technical and economic merits. It also assists in
understanding and quantifying the effects of
uncertainty or changes in the inputs. HOMER can
model off-grid and grid connected micro-power
systems serving electric and thermal loads, and
comprising any RET combination. It is applicable
for India as well as other countries.

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can be achieved thru MATLAB. It is applicable for

India as well as other countries.

Figure6: HOMER Software

Figure8: MATLAB Software.

3. Results and Discussion

To assess river flow, there are two main
approaches: the flow duration curve (FDC) and the
simulated stream-flow (model) methods or flood
frequency analysis (FFA) [11, 12]. A less accurate
intermediate approach is based on the mean annual
flow (MAF), which can also be used in some
programs. With recent advances in GIS technology
and the increased availability of high-quality
topographic and hydrologic data, it is now possible
to rapidly assess power potential on a widespread
basis while maintaining a relatively high level of
detail. In most countries, GIS data are free of
charge.
Table 1: SHP planning and development - decision
support system tools for Indian Scenario

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iHOGA:
iHOGA
(improved
Hybrid
Optimization by Genetic Algorithms) is software
developed in C++ for the simulation and
optimization of Hybrid Renewable Systems
including SHP for generation of electrical energy
(DC and/or AC). Optimization is achieved by
minimizing total system costs throughout the whole
of its useful lifespan, when those costs are referred
to or updated for the initial investment (Net Present
Cost, NPC). Optimization is therefore financial
(mono-objective). However, the program allows for
multi-objective optimization, where additional
variables may also be minimized: equivalent CO2
emissions or unmet load (energy not served), as
selected by the user. Since all of these variables
(cost, emissions, or unmet load) are mutually
counterproductive in many cases, more than one
solution is offered by the program, when multiobjective optimization for RET is sought. Some of
these solutions show better performances when
applied to emissions or unmet load, whereas other
solutions are best suited for costs. It is applicable
for India as well as other countries.

Figure7: iHOGA Software

MATLAB: Setting up and solving a large
optimization problem for portfolio optimization,
constrained data fitting, parameter estimation, or
other applications can be a challenging task. As a
result, it is common to first set up and solve a
smaller, simpler version of the problem and then
scale up to the large-scale problem. Working with a
smaller version reduces the time that it takes to
identify key relationships in the model, makes the
model easier to debug, and enables you to identify
an efficient solution that can be used for the largescale problem. Three techniques for finding a
control strategy for optimal operation of a
hydroelectric dam: using a nonlinear optimization
algorithm, a nonlinear optimization algorithm with
derivative functions, and quadratic programming

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For hydropower project studies, remote sensing

(e.g., LIDAR), which is becoming cost effective
compared with conventional surveying, has
represented a leap forward in producing digital
elevation models, especially in areas that are
difficult to access. Using Digital Elevation Model
(DEM) [13] and regional hydrologic data, these
software tools are able to calculate the amount of
hydropower available on all streams in a study
area, screening out sites within environmentally
sensitive or excluded areas, and to estimate project
costs. It is absolutely clear that a reliable
assessment of real SHP site feasibility implies
some physical site surveying, but this traditional
assessment can be greatly facilitated with computer
programs if the GIS technique [14, 15] involving
the spatial variability of catchments characteristics
is integrated.

4. Conclusion
During the last 15-20 years, hydropower
assessment tools based on computer software have
improved considerably, accounting particularly for
the complex integration of river catchments
attributes world wide. This improvement is due

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mainly to the advent of GIS. The increased

availability of high-quality topographic and
hydrologic data, it is now possible to rapidly assess
power potential on a widespread basis while
maintaining a relatively high level of detail. In
most countries, GIS data are free of charge. For
hydropower project studies, remote sensing is
becoming
cost
effective
compared
with
conventional surveying, has represented a leap
forward in producing digital elevation models,
especially in areas that are difficult to access. Using
DEM and regional hydrologic data, these software
tools are able to calculate the amount of
hydropower available on all streams in a study
area, screening out sites within environmentally
sensitive or excluded areas, and to estimate project
costs. It is absolutely clear that a reliable
assessment of real SHP site feasibility implies
physical site surveying, but this traditional
assessment can be greatly facilitated with computer
programs if the GIS technique involving the spatial
variability of catchments characteristics is
integrated in India.

5. Acknowledgement

6. References

[8]
Alterach, J.; Vergata, M. A method to
evaluate the effective potential hydropower
production applied to a case study. In Proceedings
of the International Conference HIDROENERGIA
2010, Lausanne, Switzerland, June 2010
[9]
Ballance, A.; Stephenson, D.; Chapman,
R.A.; Muller, J.A. Geographic information systems
analysis of hydro power potential in South Africa.
J. Hydroinform. 2000, 2, 247254
[10]
Carroll, G.; Rieves, K.; Lee, R.; Cherry, S.
Evaluation of potential hydropower sites
throughout the United States. In Proceedings of the
ESRI International User Conference, San Diego,
CA, USA, August 2004.
[11]
Dudhani, S.; Sinha, A.K.; Inamdar, S.S.
Assessment of small hydropower potential using
remote sensing data for sustainable development in
India. Energy Policy 2006, 34, 31953205.

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The authors declare that there is no conflict of

interests.

[7]
Adhikary,P., Roy,P.K., and Mazumdar,A.:
Hydraulic transient analysis of SHP: A MCDM
application for optimum penstock design, IWMSID
2013 (IIT-Bhubaneswar), Paper No: IWMSID /
WRE / 16.

[1]
Adhikary,P., Roy,P.K., and Mazumdar,A.:
Safe and efficient control of hydro power plant by
fuzzy logic, IJESAT, Vol.2, Issue-5, pp. 1270-1277
(2012)
[2]
Adhikary,P., Roy,P.K., and Mazumdar,A.:
MCDA of manpower shift scheduling for cost
effective hydro power generation, IJETED, Vol.7,
Issue-2, pp. 116-127 (2012)
[3]
Adhikary,P., Roy,P.K., and Mazumdar,A.:
Selection of Penstock material for SHP A Fuzzy
Logic Approach, IJASTTM, Vol.6, Issue-2, pp.
521-528 (2012)
[4]
Adhikary,P., Roy,P.K., and Mazumdar,A.:
Selection of hydro-turbine blade material
Application of Fuzzy Logic (MCDA), IJERA,
Vol.3, Issue-1, pp. 426-430 (2013)
[5]
Adhikary,P., Roy,P.K., and Mazumdar,A.:
Fuzzy Logic based user friendly Pico-Hydro Power
generation for decentralized rural electrification,
IJETT, Vol.4, Issue-4, pp. 507-511 (2013)

[12]
Felix, J.; Dubas, A. Use of GIS to identify
potential sites for small hydroelectric plants:
general concepts and exemple of application. In
Proceedings of the International Conference
HIDROENERGIA 2010, Lausanne, Switzerland,
June 2010
[13]
Forrest, N. Hydrobot: Remote Surveys of
National Hydro Resources. In Proceedings of the
International Conference HIDROENERGIA 2010,
Lausanne, Switzerland, June 2010
[14]
Gismalla, Y.A.; Bruen, M. Use of a GIS in
reconnaissance studies for small-scale hydropower
development in a developing country: a case study
from Tanzania. In Proceedings of the Conference
HydroGIS 96: Application of Geographic
Information Systems in Hydrology and Water
Resources Management, Vienna, Austria, April
1996
[15]
Gustard, A.; Irving, K.; Rees, G.; Young,
A. Hrological models for small scale hydropower
assessment. In Proceedings of the Conference
HIDROENERGIA 95, Milan, Italy, September
1995.

[6]
Adhikary,P., Roy,P.K., and Mazumdar,A.:
Fuzzy logic based blade angle control of Kaplan
turbine for a hydro power project, ICERTSD 2013
(BESUS), Paper No: ICERTSD-13-109.

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Biographies

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2006-2014 Asian Research Publishing Network (ARPN). All rights reserved.

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MULTI-DIMENSIONAL FEASIBILITY ANALYSIS OF SMALL

HYDROPOWER PROJECT IN INDIA: A CASE STUDY
Priyabrata Adhikary, Pankaj Kr Roy and Asis Mazumdar
S. W. R. E., Jadavpur University, Kolkata, India
E-Mail: priyabrata24@gmail.com

ABSTRACT
The assessment of Small Hydro Power (SHP) sites for project planning and development represents a relatively
high proportion of overall cost. A high level of experience and expertise is required to accurately conduct this multidimensional assessment at both pre-feasibility and feasibility analysis stage. A variety of multi-criteria decision analysis or
making (MCDA or MCDM) methods as well as computer-based feasibility assessment tools have been developed for the
same. However, a reliable assessment implies physical site surveying and planning at pre-feasibility stage itself. The
advent of Geographic Information System (GIS) along with these feasibility analysis software tools has been of enormous
use for the feasibility analysis of SHP project at minimum time-cost-effort for making further decision. To the best of the
authors knowledge this software tool based novel approach for Indian small hydropower project feasibility analysis is
absent in renewable energy literatures due to its assessment complexity.
Keywords: hydropower, RET screen, feasibility analysis, MCDA, MCDM.

1. INTRODUCTION
Indian Government has taken up certain
resolutions towards the promotion of Small Hydro Power
(SHP) projects keeping in mind the various advantages.
Grants have been allotted and also provided subsidies to
promote alternative sources of electricity in the country.
On 24th May 2003, Honourable Prime Minister of India
launched a scheme, formulated by Central Electricity
Authority (CEA) for the preparation of Preliminary
Feasibility Report (PFR) of 162 new hydropower schemes
totalling to over 50, 000 MW. National average annual per
capita consumption is 603 units whereas in Bihar it is 75
units as published in report of FY: 2005-2006. The
National Electricity Policy (NEP) aims to achieve an
annual average per capita consumption of 1, 000 units
after 2012. Small hydropower generation [1, 2] as a clean,
renewable and long-term source of energy with peaking
capability has a valuable role in this power generation
addition strategy for Bihar and can significantly
supplement the large coal-based capacity addition targets
for the state. Once established, small hydropower plants
have long and productive lives in excess of 35 years, and
in the long-run have substantively cheaper operating costs
than coal-based or natural gas based plants. Bihar has been
making rapid progress in harnessing its small hydro.
Despite bifurcation of state, and transfer of potentially
attractive small hydro locations on geographic boundaries,
Bihar State Hydroelectric Power Corporation Ltd. (BHPC)
has expanded its generation capacity from 18.3 MW in
2000 to 47.1 MW till the end of the 10th Plan period. The
cost [3, 4] of clean-green-friendly hydroelectricity in India
is approx. Rs2.5/kWh (i.e., US$55/MWh approx. FY:
2006) which is relatively low, compared to others and thus
competitive.
2. LITERATURE REVIEW
Over the last few decades, a variety of multicriteria decision analysis or making (MCDA or MCDM)

methods [3, 5] on renewable energy project planning and

management or policy assessment as well as computerbased feasibility analysis or decision support system
(DSS) tools have been developed to address this problem
and enable prospective developers to make a multidimensional assessment of the techno-economic feasibility
of a SHP project before any huge investments. A MCDA
method must be selected and applied to the problem under
consideration in order to rank alternatives. The data and
the degree of uncertainty are key factors for the decisionmaker when selecting among several MCDA or MCDM
methods. The preliminary step in MCDA or MCDM
method is to formulate the alternatives for sustainable
energy decision making problem from a set of selected
criteria and to normalize the original data of criteria. The
purpose of normalization is to obtain dimensionless values
of different criteria so that all of them can be compared.
Secondly, criteria weights are determined to show the
relative importance of criteria in MCDA or MCDM
method. Then, the acceptable alternatives are ranked by
MCDA or MCDM method with criteria weights. Finally,
the alternatives ranking is ordered. If all alternative ranks
order in different MCDA or MCDM methods are just the
same, the decision making process is ended. Otherwise,
the ranking results are aggregated again and the best
scheme is selected. The attributes are of two types,
beneficial (i.e., higher values are desired) and nonbeneficial (i.e., lower values are desired). A quantitative or
qualitative value or its range may be assigned to each
identified attribute as a limiting value or threshold value
for its acceptance. It is not absolute that more and more
criteria are helpful to the SHP project feasibility decisionmaking. Popular criterion selection methods are Delphi
Method, Least Mean Square (LMS) method etc. All
criteria or factors have their internal impact reclassified to
a common scale. Weights are then assigned to the criteria
to indicate its relative importance. Popular weighting
methods are Equal Weights Methods, Subjective

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Weighting Methods (Delphi Method, AHP etc.) [6, 7],
Objective Weighting Methods (LMS Method, TOPSIS
etc.) and Combined Weighting Methods. Then it is the
turn to determine the preference orders of alternative after
determining the criteria weights so that MCDA or MCDM
methods are employed to get the ranking order. Popular
MCDA or MCDM methods are divided into three
categories: Elementary Methods (Weighted Sum Method,
Weighted Product Method etc.), Unique Synthesizing
Criteria Methods (AHP, TOPSIS etc.) and Outranking
Methods (ELECTRE, PROMETHEE etc.) [8, 9]. Usually,
the decision maker selects the best alternative based on the
ranking orders after the calculation in a selected MCDA
method. The application of various MCDA or MCDM
method of calculation may yield different results.
Therefore, the ranking results are necessarily aggregated
again and the best scheme from the alternatives is selected.
The methods used to aggregate the preference orders are
called as Aggregation Methods (E.g. - Voting Method,
Mathematical Aggregation Method etc.). MCDA or
MCDM problems also have two broad classifications:
Multiple Objective Decision Making (MODM) and
Multiple Attribute Decision Making (MADM) or Multi
Criteria Analysis (MCA). The multiple-objective decision
making model (e.g. Global criterion method, Utility
function method etc.) is appropriate for "well-structured"
problems. Well-structured problems are those in which the
present state and the desired future state (objectives) are
known as the way to achieve the desired state. The model
encompasses an infinite or very large number of
alternative solutions that are not explicitly known in the
beginning, constraints are analyzed, and the best solution
is reached by solving the mathematical model. Multiple-

attribute decision making or multi-criteria analysis model

(TOPSIS, ELECTRE etc.) is appropriate for "illstructured" problems. Ill-structured problems are those
with very complex objectives, often vaguely formulated,
with many uncertainties, while the nature of the observed
problem gradually changes during the process of problem
solving. The weak structure makes it impossible to obtain
a unique solution. The ambiguity originates from the
structure of goals or objectives, which is complex and is
expressed in different quantitative and qualitative
measurement units. Results of ill-structured problems are
different dimensions criteria for the evaluation of solutions
and variable constraints. The model encompasses a finite
number of alternative solutions that are known at the
beginning. The problem is solved by finding the best
alternative or a set of good alternatives in relation to
defined attributes or criteria and their weights. Another
way of MCDA or MCDM method classification for water
resource system planning and management problems
includes: Distance Based Method (Compromise
Programming, TOPSIS etc.), Outranking Method
(ELECTRE, PROMETHEE etc.), Priority or Utility Based
Method (Weighted Average Method, AHP etc.) and Mixed
Category (EXPROM-2, STOPROM-2 etc.).
Similarly, various software tools [10] and
interactive maps or atlases are deployed publicly on the
Web and indicate the locations of SHP sites and their main
features as shown in Table-1. The main aim of these
software tools (E.g. - RETScreen, IMP 5.0, Hydro Help
etc.) is to find a rapid and reasonably accurate means of
predicting the techno-economic output of a particular
small hydropower project scheme from flow duration
curve (FDC) or flood frequency analysis (FFA).

Table-1. Features of various SHP project feasibility analysis softwares.

3. MATERIALS AND METHODS

RETScreen software [11, 12] is capable of
assessing all types of renewable energy technologies
(RETs) viability factors such as energy resources available
at the project site, equipment performance, initial project
costs, periodic project costs, financing, income (or
savings), environmental characteristics of energy
displaced, environmental credits etc. Worldwide
meteorological data incorporated in the software includes
both the ground-based meteorological data and NASAs
satellite-derived
meteorological
data
sets.
The
RETScreens hydroelectric model can be used anywhere
in the world. The same has been used for the feasibility
analysis of a 6MW capacity SHP site of BHPC in India as
discussed in this paper.

4. RESULT AND DISCUSSIONS

The proposed site is located on the banks of
tributary Baghla Dhar, and has comparatively a small
catchment area (as Baghla Dhar is not the major path of
Kosi River) at Supaul district in Bihar. Considering the
above parameters, we analyzed the annual rainfall data of
the local area (since the major inflow in the river is due to
rainfall upstream). The geographical co-ordinates of the
proposed 6MW BHPC-SHP project site as shown in
Figure-1 are as under:
Latitude- 2609 North
Longitude- 8653 East

81

VOL. 9, NO. 1, JANUARY 2014

ISSN 1819-6608

ARPN Journal of Engineering and Applied Sciences

2006-2014 Asian Research Publishing Network (ARPN). All rights reserved.

www.arpnjournals.com
basic information concerning the site conditions: latitude
and longitude, available head, flow, or drop in elevation.
RETScreen calculates the estimated renewable energy
delivered for SHP projects, based on the adjusted available
flow (adjusted flow-duration curve), the design flow, the
residual flow, the load (load-duration curve), the gross
head and the efficiencies or losses. The flow-duration
curve of 6MW SHP site has been calculated and shown in
Figure-3.

Figure-1. Location map of 6MW (BHPC) SHP site.

The application of this tool for the proposed SHP
case study will also demonstrate its capacity to perform
feasibility studies across the world, for various design
options and financing as well as different economic
scenarios. Six worksheets are provided in the small
hydropower project RETScreen file:
# Start
# Energy Model
# Cost Analysis
# GHG Emission Analysis (Optional)
# Financial Analysis
# Sensitivity Analysis and Risk Analysis (Optional)

Figure-3. RETScreen - flow duration curve (Energy

Model).
Combined turbine performance is also calculated
as shown in Figure-4 at regular intervals on the flowduration curve. Plant capacity is then calculated and the
power-duration curve is established. Available energy is
simply calculated by integrating the power-duration curve.
In the case of a central-grid, the energy delivered is equal
to the energy available.

a) Start
The Start worksheet of the RET-Screen
software has basic informations about the project,
planner, type of project, site location etc as shown in
Figure-2.

Figure-4. RETScreen - combined turbine efficiency curve

(Energy Model).

Figure-2. RETScreen - start worksheet (SHP Project

Analysis).
b) Energy model
Hydrology Analysis is the first step, referred to
as the Energy Model, and requires the user to collect

c) Cost analysis
During the Cost Analysis, a detailed cost
analysis is performed taking into account initial costs and
annual costs (maintenance, insurances etc.) involved in the
project as shown in Figure-5. The total initial cost
calculated was INR 51.00 Crores i.e., US$ 11, 333, 333
(Year: 2006). The cost of Feasibility Study,
Development and Engineering is 3% to 5% each of
Total Initial Cost. The cost of Power System is 30% to
35% whereas Balance Item and Misc. Cost is 50% to
55% of it. O and M Cost is generally 10% to 15% of the
Total Initial Cost for SHP plant.

82

VOL. 9, NO. 1, JANUARY 2014

ISSN 1819-6608

ARPN Journal of Engineering and Applied Sciences

2006-2014 Asian Research Publishing Network (ARPN). All rights reserved.

www.arpnjournals.com

Figure-5. RETScreen - cost analysis.

d) Emission analysis
The RETScreen has the capacity to estimate the
amount of green house gases (GHG), which could be
avoided as a result of using renewable energy sources such

as SHP project to reduce carbon foot print. The required

input data is the fuel type used. The net annual GHG
emission reduction tCO2 is 31892 for the 6MW SHP site
as evident from Figure-6.

Figure-6. RETScreen - emission analysis.

e) Financial analysis
A number of different economic and financial
feasibility indices were calculated such as the year-topositive cash flow, Internal Rate of Return (IRR) and Net
Present Value (NPV) as shown in Figure-7. The
RETscreen calculations are based on 17.6% pre-tax IRR
equity and 6.8% after-tax IRR assets. It shows a simple
payback over 7years and equity payback over 9years for
the 6MW SHP project of BHPC.

The RETscreen accumulated cash flow results

over 35 years of operation is shown in Figure-8. The net
present value (NPV) calculated is $3, 982, 883 and the
benefit-cost (B-C) ratio is 2.17 which is more than unity,
hence the project is feasible for the standard SHP based
electricity export rate of INR 2.5/kWH (US$55/MWH).

Figure-8. RETScreen - cumulative cash flow (Graphical

Analysis).
Figure-7. RETScreen - financial analysis.

83

VOL. 9, NO. 1, JANUARY 2014

ISSN 1819-6608

ARPN Journal of Engineering and Applied Sciences

2006-2014 Asian Research Publishing Network (ARPN). All rights reserved.

www.arpnjournals.com
f) Sensitivity analysis and risk analysis
Different economic scenarios were studied in
order to indicate the viability of the installation, by
varying the electricity price (EP) and the CPI (Consumer
Price Index). CPI affects the annual cost of the plant
(insurance, staff and maintenance). The electricity price is
fixed every year according to economic and political
parameters. Assuming that the plant has a lifetime of 35
years, the minimum EP increment was calculated in order
to offset the increased fixed costs incurred by the CPI. The
electricity price was adjusted in accordance with the
annual fixed tariff referred to as the CPI, with or without
governmental subvention. Thus from sensitivity and risk
analysis the SHP project feasibility is re-assured.
5. CONCLUSIONS
Small hydropower projects offer great
opportunities for sustainable development of the countries.
Being the cheapest, domestic, and renewable resource of
energy, it deserves to be high up on the governments
investment agenda. It is also a great market that creates
business opportunities for private companies, especially in
the developing countries like India. RETScreen Clean
Energy Project Analysis Software is a decision support
system (DSS) tool developed in order to assist the planners
and decision makers in developing the renewable energy
or any energy efficient projects. The software can be
utilized worldwide and it reduces time-cost-effort spent
while identifying and assessing potential energy projects
and alternatives at the feasibility or planning stage. The
software makes it a lot easier to observe the effects of the
techno-economic changes in the project formulation. It can
be concluded that the decision maker may benefit (in
terms of time-cost-manpower etc.) from the analysis
results of RETScreen software in evaluating various
alternatives of the hydropower project if he or she is
already informed about the few weaknesses of the
software (ignore problems of earthquake, erosion,
sediment etc.).
ACKNOWLEDGEMENT
The authors declare that there is no conflict of
interests. The authors would like to thank BHPC, Bihar
and SWRE, Jadavpur University, Kolkata for providing
techno-commercial literatures or informations required
for the research work.

[3] Adhikary P., Roy P.K. and Mazumdar A. 2012. Safe

and efficient control of hydro power plant by fuzzy
logic. IJESAT. 2(5): 1270-1277.
[4] Adhikary P., Roy P.K. and Mazumdar A. 2013. Fuzzy
logic based optimum penstock design: Elastic water
column theory approach. ARPN Journal of
Engineering and Applied Sciences. 8(7): 563-568.
[5] Adhikary P., Roy P.K. and Mazumdar A. 2012.
MCDA of manpower shift scheduling for cost
effective hydro power generation. IJETED. 7(2): 116127.
[6] Adhikary P., Roy P.K. and Mazumdar A. 2012.
Selection of penstock material for SHP - A Fuzzy
Logic approach. IJASTTM. 6(2): 521-528.
[7] Adhikary P., Roy P.K. and Mazumdar A. 2013.
Selection of hydro-turbine blade material Application of Fuzzy Logic (MCDA). IJERA. 3(1):
426-430.
[8] Adhikary P., Roy P.K. and Mazumdar A. 2013. Fuzzy
Logic based blade angle control of Kaplan turbine for
a hydro power project. ICERTSD (BESUS), Paper
No: ICERTSD-13-109.
[9] Adhikary P., Roy P.K. and Mazumdar A. 2013.
Hydraulic transient analysis of SHP: A MCDM
application for optimum penstock design. IWMSID
(IIT-Bhubaneswar), Paper No: IWMSID / WRE / 16.
[10] Adhikary P., Roy P.K. and Mazumdar A. 2013. Indian
SHP project planning and development: A review of
decision support system tools. IJERT. 2(6): 13861391.
[11] Alonso-Tristn C., Gonzlez-Pena D., DezMediavilla M., Rodrguez-Amigo M. and GarcaCaldern T. 2011. Small hydropower plants in Spain A case study. Renewable and Sustainable Energy
Reviews (Elsevier). 15: 2729-2735.
[12] Kosnik L. 2010. The potential for small scale
hydropower development in the US. Energy Policy
(Elsevier). 38: 5512-5519.

REFERENCES
[1] Adhikary P., Roy P.K. and Mazumdar A. 2013. Fuzzy
Logic based user friendly Pico-Hydro power
generation for decentralized rural electrification.
IJETT. 4(4): 507-511.
[2] Chin D.A., Mazumdar A. and Roy P.K. WaterResources Engineering (3rd Edition). Pearson
Educations Ltd.

84

ANNEXURE V

RETScreen Analysis Worksheets

Clean Energy Project Analysis Software

Project information

See project database

Project name
Project location

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

Prepared for
Prepared by

Feasibility Study (Academic / Research)

Priyabrata Adhikary, SWRE, Jadavpur University

Project type

Power

Technology
Grid type

Hydro turbine
Central-grid

Analysis type
Heating value reference

Method 2
Lower heating value (LHV)

Show settings
Language - Langue
User manual

English - Anglais
English - Anglais

Currency
Symbol
Units

Site reference conditions

$
Metric units

Select climate data location

Climate data location

Madhubani

Show data

Latitude
Longitude
Elevation
Heating design temperature
Cooling design temperature
Earth temperature amplitude

Unit
N
E
m
C
C
C

Air temperature
C
14.4
17.1
21.5
23.7
24.0
24.9
24.8
24.7
23.6
21.3
18.6
15.6
21.2

Month
January
February
March
April
May
June
July
August
September
October
November
December
Annual
Measured at

Climate data
location
26.4
86.1
151
9.5
28.3
16.4

Project location
26.4
86.1
151

Relative
humidity
%
44.5%
42.1%
39.3%
52.5%
72.1%
82.0%
86.6%
85.8%
84.5%
74.1%
53.4%
46.7%
63.8%

Daily solar
radiation horizontal
kWh/m/d
4.14
5.27
6.36
6.92
6.92
5.73
4.62
4.72
4.48
5.04
4.77
4.06
5.25

Atmospheric
pressure
kPa
93.3
93.1
92.9
92.7
92.4
92.2
92.2
92.3
92.6
93.0
93.3
93.4
92.8

Wind speed
m/s
2.6
3.0
3.1
3.4
3.4
3.1
2.6
2.4
2.3
2.3
2.5
2.5
2.7
10.0

Earth
temperature
C
15.4
19.2
24.8
27.0
26.8
26.6
25.8
25.5
24.4
22.1
19.2
16.3
22.8
0.0

Heating
degree-days
C-d
110
24
0
0
0
0
0
0
0
0
0
74
209

Cooling
degree-days
C-d
138
200
357
411
435
448
459
455
407
351
257
174
4,090

Complete Energy Model sheet

RETScreen4 2012-11-23

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

Minister of Natural Resources Canada 1997-2012.

NRCan/CanmetENERGY

30-04-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls

RETScreen Energy Model - Power project

Show alternative units

Proposed case power system

Incremental initial costs

Technology

Hydro turbine

Analysis type
Hydro turbine
Resource assessment
Proposed project
Hydrology method
Gross head
Maximum tailwater effect
Residual flow
Percent time firm flow available
Firm flow
Hydro turbine
Design flow
Type
Turbine efficiency
Number of turbines
Manufacturer
Model
Design coefficient
Efficiency adjustment
Turbine peak efficiency
Flow at peak efficiency
Turbine efficiency at design flow

Maximum hydraulic losses

Miscellaneous losses
Generator efficiency
Availability
Summary
Power capacity
Available flow adjustment factor
Capacity factor
Electricity delivered to load
Electricity exported to grid
Fuel rate - proposed case power system
Electricity export rate

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

Method 1
Method 2

m
m
m/s
%
m/s

m/s

Run-of-river
User-defined
6.0
1.00
0.000
10.0%
140.00

150.000
Kaplan
Standard
3

%
%
m/s
%

4.5
0.0%
90.4%
112.5
89.9%

%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%

Flow
m/s
150.00
145.00
140.00
135.00
130.00
125.00
95.00
90.00
85.00
80.00
75.00
70.00
65.00
60.00
55.00
52.00
50.00
47.00
45.00
40.00
35.00

%
%
%
%

5.0%
3.0%
96.5%
96.0%

kW
%
MWh
MWh

7,060
1.00
55.3%
0
34,189

$/MWh
$/MWh

0.00
55.00

See product database

Show figure

Turbine
efficiency
0.00
0.00
0.34
0.52
0.61
0.65
0.68
0.69
0.70
0.71
0.71
0.72
0.73
0.74
0.74
0.75
0.76
0.77
0.77
0.78
0.79

Turbine
efficiency
0.00
0.00
0.00
0.07
0.41
0.63
0.76
0.83
0.87
0.89
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90

Number of
turbines
0
1
1
1
1
1
1
2
2
2
2
2
2
2
3
3
3
3
3
3
3

Combined
efficiency
0.00
0.07
0.76
0.89
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90
0.90

Show figure

Firm
6,660

30-04-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

30-04-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

30-04-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls

RETScreen Tools - Power project

Settings

As fired fuel
Biogas
Building envelope properties
Appliances & equipment
Electricity rate - monthly
Electricity rate - time of use
GHG equivalence

Ground heat exchanger

Heat rate
Heating value & fuel rate
Hydro formula costing method
Landfill gas
Unit conversion
User-defined fuel

User-defined fuel - gas

User-defined fuel - solid
Water & steam
Water pumping
Window properties
Custom 1
Custom 2

Hydro formula costing method

Country
Local vs. Canadian equipment cost ratio
Local vs. Canadian fuel cost ratio
Local vs. Canadian labour cost ratio
Equipment manufacture cost coefficient
Exchange rate
Cold climate
Design flow
Gross head
Number of turbines
Type
Flow per turbine
Turbine runner diameter per unit
Facility type
Existing dam
New dam crest length
Rock at dam site
Maximum hydraulic losses
Miscellaneous losses
Road construction
Tunnel
Canal
Penstock
Distance to borrow pits
Transmission line
Grid type
Length
Difficulty of terrain
Voltage

Initial costs (credits)

Feasibility study
Development
Engineering
Power system
Hydro turbine
Road construction
Transmission line
Substation
Balance of system & miscellaneous
Penstock
Canal
Tunnel
Other
Subtotal:
Total initial costs

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

$/CAD
yes/no
m/s
m
turbine
m/s
m
yes/no
m
yes/no
%
%

km

India
0.50
2.00
0.50
1.00
0.80
No
150
6
3
Kaplan
50.00
2.80
Small
No
Yes
5.0%
3.0%

kV
Amount
$

Adjustment
factor

0
0
872,000
18,187,000
0
264,000
262,000
0
0
0
0
0
19,585,000

Small

5.0%

10.0
Central-grid
10.0
1.0
33.0

km

150
6
3
Kaplan

0.60
0.60
0.60
0.60

Central-grid

Amount
$
0
0
523,200

Relative costs
0.0%
0.0%
4.5%

10,912,200
0
158,400
157,200

92.9%
0.0%
1.3%
1.3%

0
0
0
0
0
11,751,000

0.0%
0.0%
0.0%
0.0%
100.0%

30-04-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls

RETScreen Cost Analysis - Power project

Settings
Method 1
Method 2

Initial costs (credits)

Feasibility study
Feasibility study
Subtotal:
Development
Development
Subtotal:
Engineering
Engineering
Subtotal:
Power system
Hydro turbine
Road construction
Transmission line
Substation
Energy efficiency measures
User-defined
Subtotal:
Balance of system & miscellaneous
Spare parts
Transportation
Training & commissioning
User-defined
Contingencies
Interest during construction
Subtotal:
Total initial costs
Annual costs (credits)
O&M
Parts & labour
User-defined
Contingencies
Subtotal:
Periodic costs (credits)
User-defined
End of project life

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

Notes/Range
Second currency
Cost allocation

Second currency
Notes/Range

None

Unit

Quantity

cost

397,121

$
$

397,121
397,121

3.5%

cost

473,110

$
$

473,110
473,110

4.2%

$
$

498,102
498,102

4.4%

$
$
$
$
$
$
$
$

3,979,000
3,979,000

35.1%

$
$
$
$
$
$
$
$

5,986,000
5,986,000
11,333,333

52.8%
100.0%

cost

kW
km
km
project
project
cost

%
project
p-d
cost
%
0.00%

Unit

498,102

7,060.12

1
12 month(s)

$
$
$

Quantity

project
cost
%

Unit
cost

Year
10

cost

Unit cost

3,979,000

5,986,000
11,333,333
11,333,333

Amount

Unit cost

$
$

170,000
170,000

Unit cost
100,000

Relative costs

Amount
$
$
$
$

170,000
170,000

$
$
$

Amount
100,000
-

30-04-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls

RETScreen Emission Reduction Analysis - Power project

Emission Analysis
Method 1
Method 2
Method 3

Global warming potential of GHG

25
298

tonnes CO2 = 1 tonne CH4

tonnes CO2 = 1 tonne N2O

(IPCC 2007)
(IPCC 2007)

Base case electricity system (Baseline)

Country - region
India

Fuel type
All types

GHG emission
factor
(excl. T&D)

T&D
losses

GHG emission
factor

tCO2/MWh
0.933

%
8.0%

tCO2/MWh
1.014

Baseline changes during project life

Change in GHG emission factor

-10.0%

Base case system GHG summary (Baseline)

Fuel mix
%
100.0%
100.0%

Fuel type
Electricity
Total

CO2 emission
factor
kg/GJ

CH4 emission
factor
kg/GJ

N2O emission
factor
kg/GJ

Fuel
consumption
MWh
34,189
34,189

GHG emission
factor
tCO2/MWh
1.014
1.014

GHG emission
tCO2
34,665.2
34,665.2

CO2 emission
factor
kg/GJ

CH4 emission
factor
kg/GJ

N2O emission
factor
kg/GJ

Fuel
consumption
MWh
34,189
34,189

GHG emission
factor
tCO2/MWh
0.000
0.000
Total
1.014
Total

GHG emission
tCO2
0.0
0.0
2,773.2
2,773.2
2,773.2

Proposed case system GHG summary (Power project)

Fuel mix
%
100.0%
100.0%

Fuel type
Hydro
Total
Electricity exported to grid

T&D losses
8.0%

MWh

34,189

Years of
occurrence
yr
1 to -1

Base case
GHG emission
tCO2
34,665.2

Proposed case
GHG emission
tCO2
2,773.2

31,892

tCO2

2,735

GHG emission reduction summary

Power project

Net annual GHG emission reduction

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

Gross annual
GHG emission
reduction
tCO2
31,891.9

is equivalent to

5,841

GHG credits
transaction fee
%

Net annual
GHG emission
reduction
tCO2
31,891.9

Cars & light trucks not used

01-05-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls

RETScreen Financial Analysis - Power project

Finance
Incentives and grants
Debt ratio
Debt
Equity
Debt interest rate
Debt term
Debt payments

Income tax analysis

Effective income tax rate
Loss carryforward?
Depreciation method
Half-year rule - year 1
Depreciation tax basis
Depreciation rate
Depreciation period
Tax holiday available?
Tax holiday duration
Annual income
Electricity export income
Electricity exported to grid
Electricity export rate
Electricity export income
Electricity export escalation rate

%
%
%
yr

$
%
$
$
%
yr
$/yr

Customer premium income (rebate)

Electricity premium (rebate)
Electricity premium income (rebate)
Heating premium (rebate)
Heating premium income (rebate)
Cooling premium (rebate)
Cooling premium income (rebate)
Customer premium income (rebate)
Other income (cost)
Energy
Rate
Other income (cost)
Duration
Escalation rate
Clean Energy (CE) production income
CE production
CE production credit rate
CE production income
CE production credit duration
CE production credit escalation rate

Fuel type
1 Hydro
2
3
4
5
6
7
8
9
#
#
#
#
#
#
#
#
#

70.0%
7,933,333
3,400,000
10.00%
10
1,291,113

%

yes/no
%
%
yr
yes/no
yr

No
Declining balance
Yes

15
No

MWh
$/MWh
$
%

GHG reduction income

Net GHG reduction
Net GHG reduction - 35 yrs
GHG reduction credit rate
GHG reduction income
GHG reduction credit duration
Net GHG reduction - 0 yrs
GHG reduction credit escalation rate

0.0%
5.0%
10.0%
35

34,189
55.00
1,880,421
0.1%

Project costs and savings/income summary

Initial costs
Feasibility study
3.5%
Development
4.2%
Engineering
4.4%
Power system
35.1%
Heating system
0.0%
Cooling system
0.0%
User-defined
0.0%
Energy efficiency measures
0.0%
Balance of system & misc.
52.8%
Total initial costs
100.0%

$
$
$
$
$
$
$
$
$
$

397,121
473,110
498,102
3,979,000
0
0
0
0
5,986,000
11,333,333

Incentives and grants

Annual costs and debt payments

O&M
Fuel cost - proposed case
Debt payments - 10 yrs
Total annual costs

$
$
$
$

170,000
0
1,291,113
1,461,113

$
$
$

100,000
0
0

Annual savings and income

Fuel cost - base case
Electricity export income
GHG reduction income - 0 yrs
Customer premium income (rebate)
Other income (cost) - yrs
CE production income - yrs
Total annual savings and income

$
$
$
$
$
$
$

0
1,880,421
0
0
0
0
1,880,421

Financial viability
Pre-tax IRR - equity
Pre-tax IRR - assets

%
%

17.6%
6.8%

After-tax IRR - equity

After-tax IRR - assets

%
%

17.6%
6.8%

Simple payback
Equity payback

yr
yr

6.6
8.9

Periodic costs (credits)

User-defined - 10 yrs
End of project life - cost

tCO2/yr
tCO2/yr
tCO2
$/tCO2
$
yr
tCO2
%

0
29,341
1,026,921
0
0

%
$
%
$
%
$
$

Net Present Value (NPV)

Annual life cycle savings

$
$/yr

3,982,883
412,984

0
0
0

Benefit-Cost (B-C) ratio

Debt service coverage
Energy production cost
GHG reduction cost

2.17
1.30
43.04
(14)

$/MWh
$/tCO2

Yearly cash flows

Year
Pre-tax
#
$
0
-3,400,000
1
412,688
2
405,646
3
398,159
4
390,205
5
381,761
6
372,802
7
363,303
8
353,237
9
342,574
10
168,395
11
1,610,452
12
1,597,815
13
1,584,454
14
1,570,331
15
1,555,408
16
1,539,646
17
1,523,002
18
1,505,433
19
1,486,891
20
1,201,999
21
1,446,694
22
1,424,934
23
1,401,991
24
1,377,807
25
1,352,320
26
1,325,464
27
1,297,171
28
1,267,368
29
1,235,981
30
770,735
31
1,168,131
32
1,131,497
33
1,092,936
34
1,052,353
35
1,009,645
36
0
37
0
38
0
39
0
40
0
41
0
42
0
43
0
44
0
45
0
46
0
47
0
48
0
49
0
50
0

After-tax
$
-3,400,000
412,688
405,646
398,159
390,205
381,761
372,802
363,303
353,237
342,574
168,395
1,610,452
1,597,815
1,584,454
1,570,331
1,555,408
1,539,646
1,523,002
1,505,433
1,486,891
1,201,999
1,446,694
1,424,934
1,401,991
1,377,807
1,352,320
1,325,464
1,297,171
1,267,368
1,235,981
770,735
1,168,131
1,131,497
1,092,936
1,052,353
1,009,645
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Cumulative
$
-3,400,000
-2,987,312
-2,581,666
-2,183,507
-1,793,303
-1,411,542
-1,038,739
-675,436
-322,199
20,374
188,770
1,799,222
3,397,037
4,981,491
6,551,821
8,107,229
9,646,875
11,169,878
12,675,311
14,162,202
15,364,201
16,810,895
18,235,828
19,637,819
21,015,626
22,367,946
23,693,410
24,990,581
26,257,949
27,493,930
28,264,665
29,432,796
30,564,293
31,657,229
32,709,582
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226
33,719,226

MWh
$/MWh
$
yr
%

Cumulative cash flows graph

40,000,000

35,000,000

MWh
$/kWh
$
yr
%
Energy
delivered
(MWh)
34,189

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

34,189

30,000,000

0
25,000,000

Clean energy
Yes
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No

Cumulative cash flows ($)

Financial parameters
General
Fuel cost escalation rate
Inflation rate
Discount rate
Project life

20,000,000
15,000,000
10,000,000
5,000,000
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
-5,000,000
-10,000,000

Year

30-04-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls

RETScreen Financial Analysis - Power project

Finance
Incentives and grants
Debt ratio
Debt
Equity
Debt interest rate
Debt term
Debt payments

Income tax analysis

Effective income tax rate
Loss carryforward?
Depreciation method
Half-year rule - year 1
Depreciation tax basis
Depreciation rate
Depreciation period
Tax holiday available?
Tax holiday duration
Annual income
Electricity export income
Electricity exported to grid
Electricity export rate
Electricity export income
Electricity export escalation rate

%
%
%
yr

$
%
$
$
%
yr
$/yr

Customer premium income (rebate)

Electricity premium (rebate)
Electricity premium income (rebate)
Heating premium (rebate)
Heating premium income (rebate)
Cooling premium (rebate)
Cooling premium income (rebate)
Customer premium income (rebate)
Other income (cost)
Energy
Rate
Other income (cost)
Duration
Escalation rate
Clean Energy (CE) production income
CE production
CE production credit rate
CE production income
CE production credit duration
CE production credit escalation rate

Fuel type
1 Hydro
2
3
4
5
6
7
8
9
#
#
#
#
#
#
#
#
#

70.0%
7,933,333
3,400,000
10.00%
10
1,291,113

%

yes/no
%
%
yr
yes/no
yr

No
Declining balance
Yes

15
No

MWh
$/MWh
$
%

GHG reduction income

Net GHG reduction
Net GHG reduction - 35 yrs
GHG reduction credit rate
GHG reduction income
GHG reduction credit duration
Net GHG reduction - 0 yrs
GHG reduction credit escalation rate

0.0%
5.0%
10.0%
35

34,189
44.00
1,504,337
0.1%

Project costs and savings/income summary

Initial costs
Feasibility study
3.5%
Development
4.2%
Engineering
4.4%
Power system
35.1%
Heating system
0.0%
Cooling system
0.0%
User-defined
0.0%
Energy efficiency measures
0.0%
Balance of system & misc.
52.8%
Total initial costs
100.0%

$
$
$
$
$
$
$
$
$
$

397,121
473,110
498,102
3,979,000
0
0
0
0
5,986,000
11,333,333

Incentives and grants

Annual costs and debt payments

O&M
Fuel cost - proposed case
Debt payments - 10 yrs
Total annual costs

$
$
$
$

170,000
0
1,291,113
1,461,113

$
$
$

100,000
0
0

Annual savings and income

Fuel cost - base case
Electricity export income
GHG reduction income - 0 yrs
Customer premium income (rebate)
Other income (cost) - yrs
CE production income - yrs
Total annual savings and income

$
$
$
$
$
$
$

0
1,504,337
0
0
0
0
1,504,337

Financial viability
Pre-tax IRR - equity
Pre-tax IRR - assets

%
%

10.6%
3.6%

After-tax IRR - equity

After-tax IRR - assets

%
%

10.6%
3.6%

Simple payback
Equity payback

yr
yr

8.5
13.0

Periodic costs (credits)

User-defined - 10 yrs
End of project life - cost

tCO2/yr
tCO2/yr
tCO2
$/tCO2
$
yr
tCO2
%

0
29,341
1,026,921
0
0

%
$
%
$
%
$
$

Net Present Value (NPV)

Annual life cycle savings

$
$/yr

320,383
33,220

0
0
0

Benefit-Cost (B-C) ratio

Debt service coverage
Energy production cost
GHG reduction cost

1.09
0.84
43.04
(1)

$/MWh
$/tCO2

Yearly cash flows

Year
Pre-tax
#
$
0
-3,400,000
1
36,228
2
28,809
3
20,945
4
12,614
5
3,792
6
-5,544
7
-15,421
8
-25,867
9
-36,909
10
-211,467
11
1,230,210
12
1,217,193
13
1,203,451
14
1,188,947
15
1,173,643
16
1,157,499
17
1,140,473
18
1,122,521
19
1,103,597
20
818,321
21
1,062,632
22
1,040,488
23
1,017,161
24
992,592
25
966,720
26
939,478
27
910,799
28
880,610
29
848,836
30
383,203
31
780,211
32
743,189
33
704,241
34
663,268
35
620,171
36
0
37
0
38
0
39
0
40
0
41
0
42
0
43
0
44
0
45
0
46
0
47
0
48
0
49
0
50
0

After-tax
$
-3,400,000
36,228
28,809
20,945
12,614
3,792
-5,544
-15,421
-25,867
-36,909
-211,467
1,230,210
1,217,193
1,203,451
1,188,947
1,173,643
1,157,499
1,140,473
1,122,521
1,103,597
818,321
1,062,632
1,040,488
1,017,161
992,592
966,720
939,478
910,799
880,610
848,836
383,203
780,211
743,189
704,241
663,268
620,171
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Cumulative
$
-3,400,000
-3,363,772
-3,334,963
-3,314,018
-3,301,404
-3,297,612
-3,303,156
-3,318,577
-3,344,444
-3,381,353
-3,592,820
-2,362,610
-1,145,417
58,034
1,246,981
2,420,624
3,578,123
4,718,596
5,841,118
6,944,714
7,763,035
8,825,668
9,866,156
10,883,317
11,875,909
12,842,629
13,782,107
14,692,906
15,573,517
16,422,353
16,805,556
17,585,767
18,328,956
19,033,197
19,696,466
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637
20,316,637

MWh
$/MWh
$
yr
%

Cumulative cash flows graph

25,000,000

MWh
$/kWh
$
yr
%
Energy
delivered
(MWh)
34,189

Malhanwa Small Hydro Electric Project (BSHPCL)

Malhanwa, River-Baghla Dhar, Supaul, Bihar

20,000,000

34,189
0

15,000,000

Clean energy
Yes
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No

Cumulative cash flows ($)

Financial parameters
General
Fuel cost escalation rate
Inflation rate
Discount rate
Project life

10,000,000

5,000,000

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

-5,000,000

Year

30-04-2014
Malhanwa SHPP 3x2MW-RETScreen Analysis.xls