Technology Status - NET Nowak Energie & Technologie AG

Electricity generation cost in USD cents /kWh
15.0
12.0
9.0
6.0
3.0
40
An example can illustrate the investment-generation-cost pattern:
Investment cost per unit of power capacity installed may be USD 2,000 per
kW for a high-head SHP plant and USD 3,000 per kW for a low-head SHP
plant. Due to higher availability, the low-head SHP plant may produce
electricity (6,000 kWh per year per installed kW) at an average cost of USD
cents 4 per kWh. The high-head SHP plant may produce 3,500 kWh per year
at an average cost of USD cents 4.6 per kWh, as shown in Figure 14. This
power can, however, be specifically produced and sold at times of higher
demand at higher tariffs.
Figure 14
Approximated Generation Costs for SHP
USD 1,000 USD 2,000 USD 3,000 USD 4,000 USD 5,000
System investment per kW installed capacity
3,500 kWh per kW and year
5,000 kWh per kW and year
4,000 kWh per kW and year
5,500 kWh per kW and year
4,500 kWh per kW and year
6,000 kWh per kW and year
Note: Based on system investment and annual electrical output. O&M costs are assumed to be 2% of system
investment. Amortisation period is 15 years, discount rate 6%.
Source: NET Ltd., Switzerland.
High cost-competitiveness occurs when the plant site has low project and
installation costs, adequate water, topography allowing for high flow and/or
high head, and consequent high electricity production. Small hydropower
costs can then be as low as 3 USD cents per KWh. Appropriate areas for
development include mountainous regions for high-head plants, rivers for
low-head plants. These are also areas where small hydropower can
contribute the most power at competitive costs. SHP plants have a
particularly long life span and relatively low O&M costs. Once the high up-
SMALL HYDROPOWER X2