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Technology Status - NET Nowak Energie & Technologie AG

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36<br />

● Costs<br />

Investment costs for SHP plants vary according to site-specific (e.g.<br />

topography, hydrology) and local characteristics (e.g. planning and<br />

administrative issues, social acceptance, finance schemes). The site is an<br />

important factor in the technical choice for the SHP system and related costs,<br />

whereas other local characteristics influence non-technical costs.<br />

The most important system and cost elements are a) civil engineering,<br />

b) equipment, and c) turbine. As a general rule, civil engineering costs are<br />

higher for high-head plants, mainly because they usually need longer<br />

pipelines. On the other hand, turbine costs are higher for low-head plants,<br />

which have to pass more water than high-head plants for the same power<br />

output and are therefore larger. Low-head power plants also run more slowly<br />

and thus cannot be connected directly to the generator. Electrical equipment<br />

(which includes the generator, the transformer, the controller, the protection<br />

system and the access lines) represent about 25% of the total plant cost for<br />

both high and low-head plants.<br />

For supplemental hydropower systems, energy production is only a<br />

secondary purpose. Therefore, civil engineering plays a less important role<br />

because the most significant construction is already in place. The turbine and<br />

the electrical equipment each cost approximately the same as the civil<br />

engineering and must be adapted to the principal purpose of the plant.<br />

Equipment costs can be highly variable, depending on the country and<br />

location, the water source and the quality of equipment. Figure 9 shows an<br />

example of SHP elements (turbine, electrical equipment and civil<br />

engineering) and relative costs for three different types of SHP plant (highhead,<br />

low-head and supplemental hydropower system). This figure helps to<br />

identify the key elements where efforts can be made to decrease the overall<br />

power plant costs.<br />

Turbines are the most expensive standard component (as opposed to civil<br />

engineering, which is highly specific for each site).<br />

High-head plants tend to have lower investment costs; because the higher<br />

the head, the less water is required to generate a given amount of power. As<br />

a result, these plants can utilise smaller and less costly equipment. However,<br />

there are disadvantages often associated with high-head sites. They are<br />

generally located in areas with low population density and relatively small<br />

local demand for electricity. Long transmission distances to densely<br />

populated areas increase final costs. Also, easily- engineered high-head sites<br />

are increasingly rare or difficult to develop.<br />

SMALL HYDROPOWER X2

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