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Small Hydro Power Stations in Slovenia ? licensing ... - ESHA

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Jurij Čadež<br />

<strong>Small</strong> <strong>Hydro</strong> <strong>Power</strong> <strong>Stations</strong> <strong>in</strong><br />

<strong>Slovenia</strong> – licens<strong>in</strong>g, environmental<br />

and economic issues<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


SHPP <strong>in</strong> SLOVENIA<br />

SHPP – <strong>Slovenia</strong>n technological and cultural <strong>in</strong>heritance<br />

SHPP - Enabl<strong>in</strong>g electrification of our towns, cities (round 1900)<br />

Gorenjske elektrarne d.o.o.:<br />

Majdič 1892<br />

HE Škofja Loka 1894<br />

HE Kokra 1898, …<br />

Only alternative power source with noticeable share <strong>in</strong> <strong>Slovenia</strong>n<br />

power production portfolio<br />

Many possibilities for expansion of SHPP<br />

Very little is be<strong>in</strong>g built - reasons:<br />

Concessions - Environmental protection<br />

Pore feasibility<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


Feasibility<br />

Natural potential of the location (production, costs)<br />

Long life expectancy<br />

Slow <strong>in</strong>vestment return<strong>in</strong>g<br />

Modern <strong>in</strong>vestment criteria<br />

Demand short repayment period (7 – 10 years)<br />

With SHPP this means first 15% of life expectancy<br />

Calculated criteria IRR, NPV...<br />

Depends on future electrical energy price estimation !?!?<br />

It is impossible to predict electricity price for 3 years ahead, yet for 30 or 50 years<br />

Gives us only feasibility estimation accord<strong>in</strong>g to current elec. energy price.<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


Feasibility – location potential<br />

M<strong>in</strong>imum net head 4 m<br />

Best feasibility with high heads and small water flows<br />

Penstocks<br />

Removal of water from river bed<br />

High Qea – decreases feasibility!<br />

Pelton turb<strong>in</strong>es<br />

Good efficiency <strong>in</strong> wide range of waterflow<br />

<strong>Small</strong> waterflows:<br />

Easy water cleann<strong>in</strong>g (sand, wood, leaves…)<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


SHPP - Ecology<br />

Naturally preserved environment<br />

One of most important life enabl<strong>in</strong>g social values<br />

Biggest threat: global warm<strong>in</strong>g<br />

RES – alternative to fossil fuel<br />

Nuclear energy<br />

Indirectly burn fossil fuels 30 do 40%<br />

Radioactive pollution<br />

Nuclear Fusion – energy of the future (not before 50 or more years)<br />

RES only ecologically acceptable energy source<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


SHPP <strong>in</strong> <strong>Slovenia</strong><br />

HPP – only important RES <strong>in</strong> <strong>Slovenia</strong><br />

SHPP produce 3,2% of EE spent <strong>in</strong> <strong>Slovenia</strong>.<br />

SHPP <strong>in</strong> Gorenjska region produces the same amount of EE as<br />

NPP Krško v 14 days of operation at full power<br />

SHPP (Gorenjska): 120 MIO kWh /year<br />

NPP (Slovenija) = 14 x 24 x 350 = 117,6 MIO kWh /year<br />

SHPP – small but important and precious part of EE from RES<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


SHPP - potential<br />

Many possibilities for:<br />

New <strong>in</strong>stalations<br />

Upgrade of exist<strong>in</strong>g SHPP<br />

Refurbishment and modernization of exist<strong>in</strong>g SHPP<br />

Very little <strong>in</strong>vestments!<br />

Ma<strong>in</strong> reason: ecology – (absurd!) ecology is reason for block<strong>in</strong>g<br />

development of RES<br />

SHPP <strong>in</strong>fluences rivers, streams<br />

Slow<strong>in</strong>g and relax<strong>in</strong>g the water flows<br />

Less water <strong>in</strong> rivers (Qea) – derivation pipes, canals<br />

Strict environmental protection <strong>in</strong> <strong>Slovenia</strong><br />

Almost entire water and near-water space under various protection<br />

Natura 2000!<br />

S<strong>in</strong>gle-sided view of state authorities towards nature protection at<br />

issu<strong>in</strong>g concessions for SHPP<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


Concession<br />

Energy exploitation of water <strong>in</strong> <strong>Slovenia</strong> - state concession<br />

Evaluation of concession <strong>in</strong>itiative – 3 ma<strong>in</strong> op<strong>in</strong>ions:<br />

FRIS (Fisheries Research Institute of <strong>Slovenia</strong>)<br />

IRSNP (The Institute of the Rep. of <strong>Slovenia</strong> for Nature Protection)<br />

IWRS (Institute for Water of the Republic of <strong>Slovenia</strong>)<br />

Compla<strong>in</strong>t aga<strong>in</strong>st their op<strong>in</strong>ion is not possible<br />

Provid<strong>in</strong>g second op<strong>in</strong>ion is not possible<br />

One small negative <strong>in</strong>fluence is enough for negative op<strong>in</strong>ion<br />

One negative op<strong>in</strong>ion is enough to prevent issu<strong>in</strong>g the concession<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


Concession<br />

Evaluation does not take <strong>in</strong>to account the positive environmental<br />

effects of SHPP<br />

Evaluation does not weigh the positive (global) and the negative<br />

(local) effects of SHPP to the environment<br />

Concession <strong>in</strong>itiative evaluation procedure is ma<strong>in</strong> reason for<br />

block<strong>in</strong>g development of SHPP <strong>in</strong> <strong>Slovenia</strong><br />

<strong>Slovenia</strong> must change procedures if wants to rise part of RES to<br />

25% as requested by EU<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


Spatial plann<strong>in</strong>g<br />

Initiative for Concession must conta<strong>in</strong> land own<strong>in</strong>g contracts:<br />

Land buy<strong>in</strong>g contracts<br />

Land servitude contracts<br />

Then the state doesn’t issue the concession<br />

Wasted money, time, effort<br />

Space of the SHPP objects must be certified as “build<strong>in</strong>g land”<br />

Locations with natural given potential are never certified as build<strong>in</strong>g<br />

land, therefore<br />

M<strong>in</strong>ucipality must change it’s Spatial plans<br />

Municipality must support the SHPP,<br />

Wait<strong>in</strong>g period for Spatial plan change – approx. 5 years<br />

Opposite to SHPP – house build<strong>in</strong>g – first you f<strong>in</strong>d a suitable<br />

build<strong>in</strong>g land…<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


Upgrad<strong>in</strong>g exist<strong>in</strong>g SHPP<br />

Estimation: possible 25% <strong>in</strong>crease of production on exist<strong>in</strong>g SHPP<br />

New turb<strong>in</strong>es (improved efficiency, higher <strong>in</strong>stalled water flows)<br />

New generators (improved efficiency)<br />

Higher upper water level – <strong>in</strong>flatable dams, hydraulic flaps<br />

Lower outlet water level – correctly designed outlets<br />

Bigger and better de-sand<strong>in</strong>g structures and clean<strong>in</strong>g mach<strong>in</strong>es<br />

Higher <strong>in</strong>stalled water flow of SHPP (high water period production)<br />

Better control systems<br />

Installation of m<strong>in</strong>i turb<strong>in</strong>es for Qea on dams<br />

etc.<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


Upgrad<strong>in</strong>g exist<strong>in</strong>g SHPP<br />

Increase of power almost always depends on concession change<br />

Same procedure of evaluation as for new concession<br />

Environmental criteria is today much more strict as <strong>in</strong> past<br />

<strong>Small</strong> chances for positive result of application for concession change<br />

Poor feasibility<br />

Calculation of NPV, IRR,… us<strong>in</strong>g just the <strong>in</strong>crease of production as an<br />

<strong>in</strong>vestment <strong>in</strong>come<br />

Same problems with price estimation as with new SHPP feasibility, but<br />

worse numbers, because of the above po<strong>in</strong>t<br />

Poor feasibility ma<strong>in</strong> reason for not fix<strong>in</strong>g eventual design flows of<br />

exist<strong>in</strong>g SHPP – easier to build from scratch then to upgrade<br />

Italian example: State f<strong>in</strong>ancial support for <strong>in</strong>vestment <strong>in</strong><br />

upgrades/refurbishments with at least 5% production <strong>in</strong>crease<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008


Conclusion<br />

Slov., EU, World politics and public generally supports RES<br />

<strong>Slovenia</strong>n state actions prove that our state is not <strong>in</strong>cl<strong>in</strong>ed to build<strong>in</strong>g<br />

SHPP:<br />

2006: unannounced decrease of premium (state support for SHPP)<br />

2007: 100% <strong>in</strong>crease of water tax for SHPP<br />

2008: New approach for concession issu<strong>in</strong>g is higher<strong>in</strong>g the concession<br />

payments from exist<strong>in</strong>g 3% to up to 8% (same as for large HPP)<br />

2008: Changes to the Energy Low threat to cancel all supports to<br />

exist<strong>in</strong>g SHPP<br />

2007 rejected 34 concession <strong>in</strong>itiations<br />

State actions are slow<strong>in</strong>g SHPP development <strong>in</strong>stead of accelerat<strong>in</strong>g<br />

State actions are contradictional to words of politics.<br />

Bled, <strong>Slovenia</strong>, June 2008 HIDROENERGIA 2008

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