2002 TCDC Training Workshop on Small Hydro Power - Hangzhou ...

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHP<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on Small Hydro Power<strong>TCDC</strong>(Technical Cooperationamong DevelopingCountries) SHP <strong>Training</strong><strong>Workshop</strong> was closed atHangzhou Regional Centerfor Small Hydro Power(HRC) on 18 Nov <strong>2002</strong>. Attendedaltogether 23 participantsfrom 14 Asian andOceanic countries.HRC’s certificates were issiuedto them. With their national dresses,the international participants wereexcited and active in presenting commentsor speeches on the SHP trainingat HRC at the closing ceremony.Though the duration of 40 days isshort, the participants benefited muchfrom the training. The monitor of theclass, Mr.Wongsavasdi from Thailandaddressed: “We all feel to havelearnt a lot from the SHP training workshopimplemented by HRC. The subjectscovered were just appropriatefor our countries. We’ll apply the SHPtechnology and experience we havelearnt here in China into our workback home. The kindness and hospitalityshown by the friendly Chinesepeople were unforgettable. On behalfof all the class, I am here to say:“Thank you, HRC!” Some of the participantsburst into tears when theyreluctantly left HRC for their homecountries.During the training, the participantswere arranged to visit some SHPstations of various types and hydropowerequipment manufacturers.They went to Nanjing Hydraulic ResearchInstitute to visit the Experi-2 SHP News, Winter, <strong>2002</strong>

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPment Base which is the largest baseof the kind in East China. There, participantswere very much impressedwith the detailed and vivid introductionby Mr.LiuHeng, Vice Director ofNanjing Hydraulic Research Institute.In Shanghai all the participants weresurprised by the development level,vigor and by its skyscrapers of thecity. They concluded China is such adynamic country that it’d contributemore to the world peace and development.Upon the end of training workshop,HRC arranged a forum for theexchange of SHP experience and technology.Representatives from the 14countries presented their country reports,introducing the experiencesand lessons learnt in the practice ofdeveloping SHP in their own countries.The computer aided presentationswere well prepared and informative,often interwoven by theheated discussions. Some presentationsintroduced the fast developmentof SHP and addressed the SHPpolicies of their own countries, attractingthe attention of many listeners,as the legal issues are actually avery important aspect of SHP exploitation.This training workshop is sponsoredby Chinese Ministry of ForeignTrade and Economic Cooperation, asone of the technical collaborativeprojects among the develping countries.All the lodging, boarding, training,pocket money and the domestictransportation fees are borne by theChinese government. This is part ofthe Chinese contribution to South-South cooperation.In 2003, HRC is planning to conduct2 international training workshopson small hydro power basedon the actual need of the vast developingcountries. The one alreadyfixed is to be implemented from 9 Mayto 18 June 2003.SHP News, Winter, <strong>2002</strong> 3

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPSpeech at the closing ceremony of <strong>2002</strong><strong>TCDC</strong> SHP <strong>Training</strong> <strong>Workshop</strong>Prof. Chen ShengshuiDirector of HRCGood morning,Ladies & Gentlemen,I am honored to be with you thismorning. You all came far away fromAsia, Oceania to Hangzhou! On behalfof all HRC staff, I’d like to extendmy warm welcome to you for attendingthe <strong>2002</strong> <strong>TCDC</strong> SHP <strong>Training</strong><strong>Workshop</strong>.This training workshop has beensponsored by Chinese Ministry ofForeign Trade and Economic Cooperation,as part of China’s contributionto South-South Cooperation or<strong>TCDC</strong> activities. <strong>TCDC</strong> means technicalcooperation among the developingcountries, to share the expertise,the facilities and the financialcost among the developing countries.HRC has been active in promotingthe global SHP development inthe past years and you have becomepart of this process! So far over 600international participants from nearly70 countries attended the trainingprograms that HRC conducted. OurSHP missions for SHP feasibilitystudy, design or construction supervisionhave been implemented over30 countries in the world.Early this year I have been appointedby the Chinese governmentas Director of HRC and I will do mybest with my colleagues includingyou — our international friends committedto promoting the SHP constructionin the developing countries.China is vast and rich in hydropowerresources, accounting for 680mil kW, of which 380 mil kW is theexploitable resources. The SHP exploitableresource is around 87 milkW. However, the installed capacityof SHP exploited only reachedaround 30% of the total exploitableSHP resource. The three batches ofconstructing over 600 counties ofprimary rural electrification programin China have been completed. Now,Chinese government has decided toset up 400 rural electrification countiesduring 2000 and 2005 as the fourthbatch. With the increase of SHP installedcapacity and the developmentof local grids, the SHP in China hasbecome a new and proven industrywith unique features. In the recentyears, the State advocates reducingthe electricity price for the rural farmersand reforming the electricity supplyas a commodity into market orientedoperation. A series of favorablepolicies that the Chinese centraland local governments adopted tostimulate the exploitation of SHPhave resulted in the large-scale SHPconstruction, rural grid improvement,SHP station technical renovation andcultivated the market of SHP technol-ogy and equipment.SHP is a sort of renewable andenvironmentally sound energy. It hasa bigger role to play if combined withenvironment improvement, povertyalleviation,flood prevention, freshwater supply, rural irrigation, navigation,fishery and tourism. Thus, moreand more countries in the world arebeginning to pay attention to harnessingit.We belong to the developingcountries and we share much in common.There is a bright future of SHPcooperation ahead of us.Participants, Hangzhou is a wellknowncity of long standing in Chinaand it served as capital of China forover 200 years in the Chinese history.With the implementation of reformand opening policy during the past20 years in China, tremendouschanges have taken place around thecity. Apart from your study of SHPtechnology to serve your own countryin the promotion of SHP developmentafter going back, you’ll havechances to see and experience whatis going on in Hangzhou and in theother Chinese coastal areas.Over one month study here atHRC is not long, however, I do hopeyou could benefit from the exchangeof SHP experience and technology,and strengthen the international cooperationof SHP among variouscountries. We share the same objective:To stimulate the exploitation ofSHP which is a renewable and environmentallysound energy appropriatefor the vast rural areas in the developingcountries.Finally, I wish your study fruitfuland your stay pleasant!4 SHP News, Winter, <strong>2002</strong>

MINI AND MICRO HYDRO POWERArieta GonelevuSenior Scientific OfficerFiji Department of EnergyGeneral Introduction of theRepublic of the Fiji IslandsThe Republic of the Fiji Islandsis made up of more than 300islands that is located in the SouthPacific Ocean at latitude 15 o 22S andlongitude 174E o 177W. The group extendsover a total area of about104,000 sq. km of which land occupiesapproximately 18,300 sq.km. Thetwo main islands are Viti Levu andVanua Levu accounting for 58% and34% respectively of the total landmass. The total population of Fiji is740,000 and it enjoys a tropical climatewith both dry and wet seasonsover certain periods in a year. Fiji’seconomy depends mainly on sugarand tourism.The Fiji Department of Energy(FDOE) is responsible for nationalenergy policies, energy efficiencyand renewable energy development,and rural electrification. Its missionis to facilitate the development of aresource efficient, cost effective andenvironmentally sustainable energysector in Fiji.The Fiji Electricity Authority isresponsible for the development,generation, transmission and distributionof electricity on the islands ofViti Levu, Vanua Levu and Ovalau.Since the commissioning of theMonasavu Hydro-electric Scheme on<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPDEVELOPMENTSViti Levu in October 1983, 90% of Fiji’stotal electricity demand was met fromhydropower resources generationfrom the 80 MW Wailoa Power Station.Hydropower is a proven andmature form of renewable energy butits future expansion in any form willhave to take into account both environmentaland social issues.Photo 1: Vatukarasa Mini HydroHydropowerIt has always been in the interestof FDOE to promote the use ofrenewable energy resources and exploitthese resources to provide highquality energy. For the island populations,options for electricity generationwill be limited to finding local islandsolutions. FDOE has, over theSHP News, Winter, <strong>2002</strong> 5

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPdecade, explored options for electrificationof rural areas.Due to its tropical climate, Fiji iswell endowed with hydropower resourcesfor development of bothlarge and small-scale hydropowerprojects. FDOE’s Hydropower AssessmentProgramme focuses on thefollowing objectives:· To assess all potential mini/micro hydropower sitesthroughout Fiji and determinetheir feasibility· To rank all potential siteswithin Fiji which would facilitatea more detailed examinationand subsequent development· To ascertain the viability ofthe sites that have beenidentified and· To prepare pre-feasibilitystudy reports for viablesites.A countrywide study, undertakenby FDOE through ADB funding,identified close to 100 small-scalehydropower project potentials. Thesesites are now being studied by FDOEto confirm their development potentialfor meeting small electricity demands.Needless to say, Fiji has asignificant large-scale hydropowerresource potential. Fiji’s next bestoption for hydropower developmentis Vaturu Water Catchment Schemefollowed by Wainisavulevu/Wainikasou diversion. Significanthydropower development potentiallies in Fiji’s largest rivers such asSigatoka, Ba and Navua.Based on the results of our HydropowerAssessment Programme,hydropower was incorporated intothe RE policy as an electrification option.The most recent hydropowerproject, undertaken by FDOE, is the30 kW Muana Hydropower Schemethat was funded by the Korean Governmentthrough the Korean InternationalCooperation Agency (KOICA),at a cost of $US200, 000. The Governmentof Fiji met the local costs.The project is for the electrificationof three villages of Naqaravutu,Wailevu and Muana in the southerncoast of Vanua Levu in the NatewaBay. The three villages have approximately136 households with a populationof 600. The three villages alsohost a primary school, a health center,grocery shops, community halls,etc.Developments of Mini/MicroHydropowerydropower systems use theHkinetic (motion) energy inflowing water to produce electricityor mechanical energy. The water flowvia channel or penstock to awaterwheel or turbine where it strikesthe buckets of the wheel, transformingthe kinetic energy into mechanicalenergy by causing the shaft ofthe waterwheel or turbine to rotate.When generating electricity, an alternatoror generator, which is connectedto the rotating shaft, convertsthe mechanical power in the motionof the shaft into electrical energy. Theelectrical energy may be used directly,stored in batteries or converted fromdirect current (DC) to alternating current(AC).Mini hydropower systems generatebetween 100 and 1500 kW. Microhydro systems generate up to 100W. The power available in a flow ofwater depends on two factors:· The vertical distance thewater “falls” referred to asPhoto 2: Hydro Monitoring Equipments6 SHP News, Winter, <strong>2002</strong>

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPhead (measured in feet ormeters)· Flow rate, which is the volumeof water flowing past apoint in a given time (measuredin cubic feet or cubicmeters per second)Mini/micro hydropower electricityis an ideal energy option for therural areas because of its low operational,maintenance and repair costs.It produces clean energy and also itis more secure and reliable when comparedto other options especially forareas where transmission of gridpower is difficult.Hydrological data have beensupplied by the PWD HydrologySection at locations where gaugingof stream flows has been carried outin the past. However, in most instancesno previous stream gauginghas been undertaken and flows attime of site inspections were estimatedand used in the design. Someof the sites have been examined inmore detail on the ground and approximatesurvey checks have beenmade to check available heads, etc.for the preliminary designs of someof the schemes.At all sites further survey willbe required before final design workcan commence and more accuratecost estimates derived. Likewise,more stream flow data should be gathered,particularly during dryer periodsto assess the firm energy availableat the individual sites.Environmental impact as a resultof the implementation of any of theseschemes would be marginal. Althoughthe sites are relatively closeto village centers, the village themselvesare remote. The aqueduct andpenstock routes have been chosento avoid unstable ground and to avoidthe occurrence of landslides, etc.Survey Procedurehen villages request for hydrosurvey through the pro-Wvincial office or to DOE, the surveyteam list the villages and undertakefield survey at the potential sites.Contents of investigation are to measurethe discharge at potential siteand gross head between the potentialsite and the proposed powerhousesite –the main purpose of this part ofthe investigation is to collect the datain this dossier and data collected viathese surveys and investigations.Table 1. In operation, undr designing and monitoring project in FijiIn OperationNAME PROVINCE HEAD CAPACITY INSTALLED1 Nasdiga Taievin 30 m 4 kW 19942 Marist Tutu Cakaudrovs 155 m 20 kW 19753 Wairiki Cakaudrove 50 m 8 kW 1930/19864 Bukuya Ba 161 m 100 kW5 Wainikeu Cakaudrove 122 m 800 kW 19926 Vatukarasea Talievu 10 m 3 kW 19937 Kadavu-koro Kadavu 40 m 20 kW 19948 Muaria Cakaudrove 40 m 30kW 1999Designing MonitoringVillage Province Head Capacity Village Province1 Abaca Ba 81m 10kW 1 Koroboya Ba2 Raviravi Ra 50m 7kW 2 Buca Cakaudrove3 Nalkorokore Kadavu 74m 15kW 3 Naqarawa NamosiFollowing the filed survey, allpotential min/micro hydro sites in thecounty will be ranked to prioritize thesites for long-term hydrology (waterlevel, rainfall, flow rate, etc.) data accumulationfor the three-year monitoringperiod.Problems associated with smallhydro development in Fijihe Fiji Islands generally haveTtopographical and meteorologicalcharacteristics that present anumber of problems regarding smallhydroelectric developments. Mostparts of the islands are subject to dryseasonal periods or dry periods betweenheavy rainfalls. With the generallysteep topography in areaswhere hydro sites might be expectedthere is a rapid runoff and unlessthere is a considerable ground waterfeed to the stream, discharge falls offrapidly to some base flow which maybe very limiting as far as firm powerproduction is concerned.On the other hand all parts ofthe island are subject to occasionalvery high rainfalls and intensities,particularly during the passage oftropical cyclones near or over the islands,which result in very severflooding in the streams. These floodsintroduce certain problems affectingthe design, operation and maintenanceof diversion and intake structures.Although most streams consideredfro these small scale hydroelectric developments convey naturallyclear water during dry weatheror even medium flows, during flooddischarges they carry a bed load ofcobbles, gravel and sand as well asfloating debris which cause potentialproblems in small intake works. Furthermoreduring high rainfall periodsmost catchments are subject to landslipsin steeper areas and this addsto debris carried down by the flood.SHP News, Winter, <strong>2002</strong> 7

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPElectrification of Lao P.D.RCOUNTRY PAPERMr. Sithanh Vongsiry,Mr. KhamphanhVanlasyVientianeLao P.D.RLao P.D.R is a land locked country in SouthEast Asia, between China in the north, Vietnamin the East, Thailand and Myanmar inthe West and with Cambodia in the South.1 General Conditionopulation of Lao P.D.R is aboutP 5,5 million.Capital city is Vientiane, which islocated in the central part of thecountry.Land area is 236,800 Sq.km, ofwhich two-thirds is mountainousarea.Our country is divided into threemajor zones, as follows:1. Northern zone is comprised of slopingand mountainous land, thatvaries in altitude between 500 to2000 meters above sea level.2. Eastern zone is the same conditionwith altitude 500 to 2000 metersabove sea level.3. Western zone generally rangesfrom 100 – 300 meters above sealevel.4. The Lao P.D.R has a tropical climatewith average temperature of26 degrees, there are two seasons:the wet and dry season.The wet season is from May –October and the dry season is betweenNovember – April, the meanannual rainfall is 1600 mm-2000 mm ormore in mountainous area, of which75% to 90%, occurs during the wetseason.There is abundance of water resourcesin my country. The main basinof water resources in Lao P.D.Rcomes from the 17 major rivers of thecountry. They flow from north tosouth with a distance of 1870 km,traverse through country’s total landmass. Abundant rainfall combinedwith high density river system (witha total water course length of 30,000km), produces an annual runoff volumedischarge into the sea of 223,000million cubic meters.From the geography and waterresources available of the Lao P.D.R,we have great potential for developmentof hydropower, even small, mediumand large hydropower projects.Development of these resources cancontribute to the supplying of electricityto households, offices, hospitalsand schools in the mountainousarea. Energy is also available for agriculturalprocessing such as rice mills,handicraft and cottage industries.Most of the people in these areasdepend heavily on “slash andburn” for their living. As a result, the8 SHP News, Winter, <strong>2002</strong>

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPnatural ecology and environment isquickly destroyed. So the quantity ofwater in upland streams in dry seasonis diminishing at a high rate. Onthe other hand during the wet season,when rainfall is heavy, the landis being destroyed by soil erosionthus causing flooding in the lowlands. To solve those problems wehave to develop hydropower projectsin our country.2 Hydro-Power Development inRemote Rural Areast present, the main purpose ofA energy supply to the ruralpeople is for developing their livingstandards, like in the city areas. Theplan for supplying electricity to ruraland remote areas will be carried outby means of expanding transmissionlines from existing substations, settingup diesel generating plants andgenerating electricity from renewableenergy resources, for example: microhydropower. However problems encounteredin the development of thisplan could be described as follows.1. High investment cost for the expansionof transmission lines tothe scattered villages, but thepower consumption and the loadfactor of the systems are relativelylow. This is due to the factthat electricity is mostly used fordomestic purposes.2. Generally the investment requiredfor setting up the diesel generatingplants is relatively low, butbecause of the high operatingcosts including fuel and O & M,the cost of electric power productionis rather high.3. Generation of electricity from hydropoweris very desirable becausehydropower is indigenous,renewable and it can be developednear the area where the loaddemand is.In the past, however only a smallnumber of micro hydro generatingplants have been built as a result ofhigh development costs, as comparedto the major hydro generatingplants. The power produced fromthese big projects are used mainly inthe municipality areas of towns, districtsand some spots along the transmissionline route, and some are exportedto the neighbouring country.At the present it is necessary tofind a solution, which would reducethe development costs.3 National Energy Plants Lao.P.D.R. has plenty of renewableenergy resourcesAsuch as coal, wood, etc, recently weare highlighting hydropower as thebest option for electricity developmentfor country with combination ofa mountainous terrain and heavy rainfall.This will provide extensive potentialfor the generation of hydroelectricity in the country.For the medium and large hydropowerstation, at present we havea total installed capacity of 615MW.The small hydropower station inthe country has a total capacity ofabout 12 MW.The micro-hydro power station hasa capacity of 2 MW.And the diesel generating plantshave a total capacity of about 16 MW.The total capacity of the energy plantof my country is 645 MW.4 Energy Requirement and Supplyin Lao P.D.R1. Energy RequirementIn 1985 the country total energydemand 213.2 GWhThe 1990 energy required289.4 GWhThe 1995 energy required465.9 GWhThe year 2000 energy required657.1 GWh2. Forecast of Energy Demand ofCountryIn the year 2005 energy demand858.3 GWhIn the year 2010 energy demand1,963.00 GWhIn the year 2020 energy demand2,798.00 GWh3. Forecast of Peak Power DemandIn the year 1995 peak power demand128.2 MWIn the year 2000 peak power demand216.0 MWFor in the year 2005 peak powerdemand320.1 MWFor in the year 2010 peak powerdemand464.2 MWFor in the year 2020 peak powerdemand700.0 MW4. Policy and Development Plan (forElectrification in Lao P.D.R)The government of Lao is aimingto develop about 16 small hydrosites, 22 medium and 30 large hydropowersites.In 2001 to 2010 the governmentof Lao has projected 6 medium hydroplants as follows.1. Nam Mang-3 (<strong>2002</strong>-2004) with installedcapacity 35 MW2. Xeset-2 (2003-2006) with installedcapacity76 MW3. Xepon (2004-2006) with installedcapacity75 MW4. Nam Ngum-5 (2005-2007) with installedcapacity 100 MW5. Xeset-3 (2006-2008) with installedcapacity20 MW6. Houay Lam Phan (2008-2010) withinstalled capacity 60 MWWith the total investment cost ofabout 548.70 million USDThe hydropower resource developmentin Lao .P.D.R is very importantfor the development of the wholecountry.SHP News, Winter, <strong>2002</strong> 9

S u r o s oYAYASAN BINA USAHALINGKUNGAN (YBUL)JAKARTAINDONESIA<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPProspect Of Small Hydro PowerDevelopment In Indonesia1. INTRODUCTION1.1. Backgroundhe Republic of Indonesia is theT world’s largest island nation,with a population of more than 200 millionspread over more than 17,000 islands(about 6,000 of which are permanentlyinhabited). The nation liesastride the equator, and stretches formore than 5,000 km from the west toeast. The principal island areas of Indonesiainclude densely populatedJava, with 58 percent of the nation’spopulation on 7 percent of the land;Sumatra; Kalimantan sharing the islandof Borneo with Malaysia andBrunei; Sulawesi; and Irian Jaya sharingthe island of New Guinea withPapua New Guinea. Other islands includeBali, the densely populatedtourist destination; Batam and Bintanin Riau Province near Singapore; andLombok, Sumbawa, Flores, WestTimor, Ambon, Seram, and Halmaherain the eastern provinces.Indonesia comprises extensivecoastal plains with mountainous terraininland, formed by volcanic actionand tectonic uplift. Smaller islandshave been formed by volcanicactivity, coral growth and uplift. Theclimate is tropical, with hot and humidweather year round. Temperaturedecreases with elevation in the mountains.Rainfall is heavy in most areas,with seasonal patterns influenced bymonsoon winds from Australia andthe Indian Ocean. Precipitation generallyincreases with elevation, andis heaviest in most parts of Indonesiafrom December to March.The collapse of the Rupiah inlate 1997 and early 1998 causedCountry ReportIndonesia’s GDP to contract by 14%in 1998 as a result of Indonesian firms’reliance on short-term dollar-denominateddebt and high levels of nonperformingloans in the banking sector.The Indonesian government iscommitted to implementing an extensiveseries of reforms and a bank capitalizationprogram, but progress hasbeen slow, leading to further lossesin investor confidence and outflowsof capital. Inflation, which peaked at77% per annum, is now significantlylower. Signs of slow economic recoveryare now appearing. To date, however,political uncertainty continuesin Indonesia, corruption is still rampantand the banking system remainsin tatters, with defaulted loans totalingmany billions of US Dollars to berestructured and new credit still almostunavailable.1.2. Electric Power SectorCharacteristicshe electrical power sector in Indonesiais dominated by theTgovernment-owned electric companyPT. PLN (Persero). Another importantissue to be discussed is how this monopolywill affect the deployment ofrenewable energy resources in bulkpower markets. There is a need, forexample, for regulation of retail electricity.Suppliers should create economicincentives that promote fullconsideration of renewable technologiesfor bulk power, distributed generation,and demand-side applications.On the other hand, wholesalecompetition is not likely to favor renewableenergy in bulk power markets.Compared with long-term bilateralpower purchase agreements,10 SHP News, Winter, <strong>2002</strong>

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPshort-term or spot markets make itmore difficult to finance and developrenewable generation options.At present, the electric power sectorin Indonesia is heavily subsidized.financial constraints. The lingeringdisputes between PLN and the IPPsover contracts have damaged thebankability of the state company inthe eyes of the world’s financial communityresult of the continuing economic crisisand PLN’s financial collapse, thegovernment has now been forced toreduce annual expenditure in the villageelectrification program.and made it almost impossible 1.4. PrivatizationThe subsidies on energy were originallyestablished as part of a social for PLN to raise offshore financing he current centrally planned,development policy. The monetary for its investments. T state-owned electric powercrisis in 1997/98, however, completely 1.3. Rural Electrificationsystem will gradually give way to privatelyowned and managed genera-unbalanced this system of subsidies: ndonesia has been committedwhile the retail electricity selling tariffsI to rural electrification for many tion, transmission and distributioncould only be raised marginally dueto the difficult political situation in thecountry, the power production costincreased tremendously. One reasonis that PLN had signed power purchaseagreements with 27 IndependentPower Producers (IPPs), underwhich it had agreed to pay for powersupplies in US Dollars.The sharp drop of the IndonesianRupiah against the US Dollar hasrendered PLN unable to meet the financialobligations to the IPPs and,as such, it is now seeking to renegotiateyears. Into the 1990’s, PLN maintainedan aggressive campaign to extendits main grids and to establishsmall grids in isolated areas to servean increasing percentage of the population.Progress in electrification is reportedon a village basis. As ofMarch 2001, about 79 percent of villageshad been electrified. The ruralhousehold electrification percentageon the other hand is only 41 percent.These figures indicate that, althoughPLN has achieved a fairly high vil-companies. These changes are intendedto reduce public debt, enhanceaccountability, and improveconsumer service. Privatization isunlikely by itself to increase the marketshare of renewable energy.Privatization can promote renewableenergy by introducing new capital.On the other hand, higher discountrates and short time horizons of privateinvestments may favor non-renewableenergy-based business endeavors.1.5. Power and Energy Costthe contract terms. Another realageelectrification rate, a large num-Structureson is that PLN has to purchase the ber of households still remain withoutelectricity supply. This is mainly A ity to end-users (retail tariff) ist present, the price of electric-gas for its power plants, as well asmost spare parts at world marketprices in US Dollars.This has left PLN in a highly uncomfortablesituation with huge foreigndebts and unable to serve itsloans in US Dollars on one hand, andlegal suits by a number of IPPs andlenders on the other hand. The ongoingrestructuring process withinPLN, and the uncertainty regardingits ownership (governmental or private)further complicate PLN’s situation.As a result, PLN is currentlyunable to implement new projectsand to add to its power generatingcapacity.As of March 2001 the state companyPLN had identified 29 criticalareas prone to rotating power cutsdue to a lack in generating power.PLN is currently unable to add to itspower generating capacity due to itsdue to the large distance of manyhouses from the main line and the lackof funds by PLN to expand their distributionlines within each villagesystem.The PLN grid extension programhas become increasingly costly as aresult of: 1) the increasing cost percustomer for transmission and distributionas more remote areas are electrified;2) the high cost of supplyingfuel to diesel generators serving isolatedsmall grids; 3) the small amountof electricity consumed by customersin rural areas and the subsidizedrates, making recovery of capital expensesusing the traditional electrificationmodel very difficult.As of March 2001, the total numberof villages still not connected to aPLN grid was more than 10’000, withan estimated 20 million people. As aheavily subsidized in Indonesia. Theaverage long-run marginal cost(LRMC) of electricity supplied to thecostumers by PLN for productioncost is estimated at IDR 600 (USD0.060) per kilowatt-hour (kWh). At thesame time, the national selling pricefor power averages at IDR 350 (USD0.035) per kWh. Retail tariffs are uniformthroughout Indonesia, withoutregard to the variation in costs ofgeneration, transmission, and distributionin different regions.PLN currently purchases excesspower from captive or communitypower plants on a case-to-case basisat up to 80% of the retail electricitytariff. Being aware of its inability toincrease its production capacity andmeet the growing demand, PLN currentlyalso shows interest to purchaseelectrical power from IPPs. The pur-SHP News, Winter, <strong>2002</strong> 11

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPchase tariff offered, however, is nottaking into consideration the reallong-term production cost of PLN’sown generation in the respective area,and currently is far too low to be attractivefor IPPs.1.6 Hydropower Resourcesydro power potential in Indonesiais 75.000 MW, potentialHfor small hydro power is 7,500 MW(10%) and 200 MW has been developed.Small hydro potentials is distributedaround the islands, can bedevelop as Local Energy Resourcesespecially in remote areas for RuralIndependent Power Supply. Severalsmall hydropower projects have alreadybeen identified in the country.A study of JICA conducted inthe early nineties has identifiedaround 10 small-scaled hydropowerprojects for the Ministry of Cooperatives.PLN mini-hydro has identifiedand studied 75 mini-hydro projects(generally smaller than 1,000 kW), andconstructed a small number.Generating equipment suppliershave identified at least 40 projects forcaptive users.1.7 Previous and Ongoing DevelopmentEffortsIn the past, numerous effortshave been made by both theIndonesian government and cooperativesto generate electricity usingsmall-scale hydropower technologies,but the results are still minimal.The Department of Public Works, DirectorateGeneral for Water ResourcesDevelopment, has been includingmicro-hydro in its projects fora number of years, whenever flow andhead conditions are favorable. Unfortunately,these limited attempts to exploitIndonesia’s vast hydropowerpotential have almost come to a completehalt, after the rural developmentprograms had to be suspended in theface of the country’s severe economicand financial crisis.1.8 Models for Hydropower DevelopmentThree models for hydropowerdevelopment: captive powerplants, small plants that sell power tothe PLN grid, and isolated plants operatedby community groups for ruralelectrification. It will broaden thenation’s awareness of the benefits ofsmaller hydro developments, and willmobilize and enhance Indonesian resourcesso that hydro developmentbecomes a viable, long-term alternativeto fossil fuels for electric generation.2. BARRIERS TO SHPWDEVELOPMENTith its mostly hilly terrains andhigh precipitations distributedover a large part of the year, Indonesiais blessed with an abundant potentialfor small-scale hydropower development.Due to various reasons,however, this potential remains stilllargely untapped. Based on experiencegained in previous attempts toexploit this potential, the commonbarriers to sustainable small-scale hydropowerdevelopment.2.1. Structural and policy-relatedbarriersCurrently, one of the most importantcommon barriers to broadersmall-scale hydropower developmentin Indonesia is the tariff structure inthe energy sector. The actual electricityretail sales tariffs – which are fixedbelow production cost and thus areheavily subsidized – make it very difficultto develop hydropower projectson a purely commercial basis in areasthat are already reached by the PLNgrid. In remote and isolated regions,due to the also subsidized price fordiesel fuel, diesel generators oftenappear economically and financiallymore attractive than hydropowerschemes that normally do not benefitfrom any subsidies.Legal, policy, and financial conditionscurrently are perceived asnegative for projects touching on PLNin any way. Information needed tomake rational business decisions inthe power sector is often unavailable,due to a lack of transparency regardingprocedures at PLN, DGEEU 1 , andPertamina, the state oil and gas company.Development planning informationhas been closely held, and detailedfinancial information (includingcost of production in different areasand at specific plants) is unavailable.There are no standardized proceduresand technical codes and standardsexisting for renewable energydevelopment in general, and for smallscalehydropower development inparticular.Lengthy and not standardizedprocedures to obtain power purchaseagreements, as well as a lack of technicalsupport impede inter-connectionof small-scale hydropowerschemes with the PLN grid, frequentlycause project failure.Imported equipment for hydropowerschemes is expensive, andspare parts are often difficult to obtain.This situation has been accentuatedby the monetary crisis and theresulting devaluation of the IndonesianRupiah, generally disfavoringany imports.A consistent and transparentgovernment policy supporting renewableenergy development is stillgreatly lacking. As opposed to otherrural electrification options, such asgrid extension or diesel generators,there are no subsidies, nor any other12 SHP News, Winter, <strong>2002</strong>

financial incentives supporting renewableenergy development. Thereis also no target set by the governmentregarding the share of renewableenergy in the country’s overallenergy mix.Development plans (such asplans for extension of electric linesinto new areas) are not coordinatedamong PLN, local governments, localresidents and cooperatives, othergovernment companies and agencies,and private businesses. Political andoutside business motives are oftensuspected to play a role in developmentdecisions.There is often a lack of productiveend-uses for power in rural areas.As a consequence, load factorsof small-scale hydropower schemesoften are low, with demand peakingduring only a few hours in theevening. The revenues from electricitysales of such schemes often arenot sufficient to cover overall productioncost.2.2. Barriers related to technical andinstitutional capacitiesS<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPand importance of preparing goodbusiness plans, as well as cash flowand cost benefit analyses.Technical problems, resultingfrom poor design and constructionquality (civil, mechanical, and electrical),are common with many smallscalehydropower schemes, andmostly have the same effects as describedin the previous paragraph.Local equipment design andmanufacturing capability is limited,and is mostly concentrated on Java.There are no mechanisms inplace (e.g. product liability, qualityassurance, technical control institution)that warrant the quality of smallscalehydropower development.Plant operation and maintenanceis often haphazard, with little preventativemaintenance. The result are frequentand often long-lasting poweroutages, which in the case of isolatedplants require the customers to possessredundant equipment for lighting,cooking, etc. This hampers thetrust in the technology in general, aswell as the willingness to pay for theelectricity supplied by such schemes.Project development organizationsoften have a poor financialrecord keeping and revenue collection.The consequence is in manycases the inability to recover investmentand production cost, leading topoor project performance and hinderingreplication.Project owners often lack inmanagerial and organizational capacitiesrequired to sustainable operate amini or micro hydropower scheme.familiar with the technology, and becausethe returns did not appear tobe as high as for other investments.Currently, Indonesian and internationalbanks are usually not willingor able to lend for any type of project.Private energy suppliers facehigher interest rates than governmententities, and will prefer conventionalenergy options with lower capitalcosts, shorter payback periods andlower up-front investment cost.There is a lack of micro-creditsfor the rural population to purchaseelectric appliances other than forlighting and thus to invest in productiveactivities based on electricityend-use.2.4. Barriers related to awarenessand informationMany institutions and decision-makersare not aware ofthe possibilities for small-scale hydropowerdevelopment. The result is oftenthat conventional energy optionsare preferred, where the potential forhydropower would be promising.Regional government involvementin development decisions isbecoming increasingly important asincreased local autonomy is implemented.Up to date, however, there islittle understanding of the electricbusiness at that level.There is no center or network existingthat collects and disseminatesinformation on all aspects of smallscalehydropower development. Thelack of broadly available informationon past experience with hydropowerdevelopment – for example in the formof lessons learnt and best practices –often results in the repetition of thesame mistakes and shortfalls in theefforts to implement projects.Basic data needed for projectevaluation (maps, surveys, hydrology,geology) is often missing or dif-takeholder involvement is oftenneglected during projectselection, planning, and implementation.Active stakeholder participationis especially important for community-basedsystems, where the stakeholderswill be managing and payingfor a project upon completion. Ifstakeholder involvement is neglected,the project acceptance andsense of ownership by the stakeholdersis often low, resulting in shortproject lifetime.2.3. Barriers related to financingThe quality of project selectionmechanismsand evaluation studies is in manycases insufficient.inancing for small-scale hydropowerdevelopment is unavail-FPre-investment financial evaluationsare often poor quality or are able or difficult to locate. Prior to thelacking altogether. Many businessmenand other potential developers ing for hydro or other renewable en-financial crisis, banks were not lend-are not familiar with the advantages ergy projects, because they were not ficult to obtain, especially for moreSHP News, Winter, <strong>2002</strong> 13

emote regions.A frequently updated and easilyaccessible inventory with potentialsmall-scale hydropower sites is currentlystill inexistent. Potential projectdevelopers therefore often have to takea lengthy way through many institutionsto identify hydropower investmentopportunities. At the same time,attractive sites may remain undeveloped,because they are not known topotential project developers.The public awareness on the implicationsof global warming in thatevery country is responsible to reduceits CO 2emissions and the rapiddepletion of the country’s fossil fuelresources, as well as the importanceof the development of renewable energyresources on the other hand isstill greatly lacking.Many of the barriers mentionedabove not only impede small-scalehydropower, but renewable energydevelopment in general.<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPdropower development in particular,in the course of the restructuring ofthe Indonesian energy sector;Development and introductionof technical standards, guide specifications,and guidelines for planning,design, and construction supervisionof small-scale hydropower projects;Design and promotion of the introductionof a standardized powerpurchase agreement for the inter-connectionof small-scale hydropowerschemes with the PLN grid.3.2 Technical and institutionalcapacity buildingevelopment and implementationof special business Dman-cated in certain regions. Such organizationscould provide a higher levelof expertise than would be affordablefor single-project O&M and managementstaffing.Design and promotion of local,village-based implementation arrangementsand organizationalmechanisms for effective local participationin developing and operatingoff-grid hydropower systems;Design and promotion of theimplementation of incentive-based arrangementsto encourage goodO&M, and revenue collection; andFormulation and promotion ofprivate/community cost sharing modelsto be applied at all stages of thedevelopment and operation of smallscalehydropower projects.3.3 Facilitating financing ofsmall hydropower projectsagement training programs for smallscalehydropower project developmentorganizations, owners and operators,to improve their managerialcapabilities, especially with respectto financial administration;esign and establishment of appropriateand sustainable fi-Design and implementation of Dtechnical training and capacity buildingnancing mechanisms for small-scaleprograms, covering topics such hydropower projects, based on an3. SOLUTIONSas project selection, evaluation, planningand designing, construction, of financial intermediaries available;analysis of requirements and formshe barriers to sustainable SmallTHydro Power development in operation and maintenance, as well Establishment of a special “revolvingIndonesia will be addressed with a as electrical distribution, metering,fund” for small-scale hydro-number of activities, that are expected and structure wiring to increase the power development for off-grid ruralto solutions in the following main activitiesscalequality and sustainability of small-electrification. This revolving fundhydropower installations; will grant loans for the implementa-3.1 Policy support and energyConduct of on-the-job-training tion of selected hydropowersector restructuringof local hydropower equipment designersand manufacturers, to further refilled by the installment paymentsschemes, and will continuously beeview of existing policy, legislationand regulatory frame-reduce the dependence of small-scale of the loans. It is clear, however, thatRwork in the renewable energy sector hydropower developments on equipmentas long as Indonesia’s energy sectorin Indonesia, with focus on smallscaleimports;is heavily subsidized, some form ofhydropower;Promotion of the structuring of subsidies will also be required forProvision of advice to governmentalformal regional “business incuba-hydropower development to level theinstitutions concerned on tors”, where continuing technical and playing field with conventional en-policy, legislation and regulatory issues management advice and assistance ergy options. Different models will bethat affect renewable energy developmentcan be provided to project develop-devised and proposed for testing,in general, and small-scale hydroers.One target of such incubators such as a replenishment of the revolv-power development in particular; would be entrepreneurs interested in ing fund by governmental subsidiesInitiation and provision of supportforming operation and maintenance that are based on the amount of elec-to attempts to level the playing (O&M) contractors or project mantricityactually produced by thefield for renewable energy developmentagement contractors, which could schemes implemented with loans outin general, and small-scale hy-provide services to several plants lo-of the revolving fund.14 SHP News, Winter, <strong>2002</strong>

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPHYDRO POWER DEVELOPMENTIN TAJIKISTANDjouraboi DjouraevBarki Tojik CompanyTajikistan1. Brief introduction of Tajikistanajikistan is locating in CentralT Asia, western of China, andborders with Afghanistan, China,Kyrgyz Republic and Uzbekistan.Tajikistan is a mountain country(about 93% of territory are mountains),filled by Tian-Shan Alay andPamir mountain systems. The territoryof Tajikistan covers 143.1 sq. kilometersand the population exceeds6.2 mill., capital city – Dushanbe.The republic boasts hundreds oflarge industries. Rapidly developingindustries: including power engineering,mining and ore- dressing, chemical,nonferrous metallurgy, mechanicalengineering, light, foodstuffs, etc.Tajikistan is richly endowed withhigh-water and rapid rivers whosepotential is widely used for powergeneration and irrigation of farmlands. Most of the rivers drain intothe Aral Sea Basin, the largestcourses being those of the AmuDarya, the Kafirnigan, the Panj, theSyr Darya, the Vakhsh and theZarafshan rivers- all fed by the meltingmountain snows and glaciers.The Panj, one of the main streams ofthe republic, runs for 921 kilometresalong the national border. Thechief water artery of Tajikistan, theVakhsh is 525 kilometres long.The hydropower is the main domestic(80%) source of power inTajikistan. In terms of its potentialwater power resources, which amountto 32.3 million kW (output capacity)or 286 billion kWh (electricity generation),out of which 19 million kWand 144 billion kWh can be producedtechnically. The republic ranks secondin the former Soviet Union afterthe Russian Federation.The economic effectives 85 billionkWh. At present used only 17%the economic effectives power resources.Besides the largest riversTajikistan have considerable plentyof the small rivers of its potentialwater power resources could productenergy 14 billion KWh.2. The power industry: stages ofdevelopmenthe construction (in 1936 toT 1952) of the three Varzob hydroelectricstation with a capacity25 MW marked the first major stepin promoting the power industry ofthe republic.By the same year, the first 35 kVtransmission line was built connectingthe station 1 with the Glovnaya(Chief) substation in Dushanbe. Thecompletion of the line started thebeginning of the power grid of therepublic.Before the construction of cascadeVarzob hydroelectric stationtotal installed capacity electric stationin Tajikistan was to 690 kW.With the aim of accelerating electrificationin the processing agriculture,government was built manyprojects of Small Hydro power plantsof country. The finally in 1950 wasbuilt about 100 Small Hydro Powerplants with the installed capacityamounted to 95000 kW.After the year 1960, of the coun-SHP News, Winter, <strong>2002</strong> 15

<strong>2002</strong> <strong>TCDC</strong> <strong>Training</strong> <strong>Workshop</strong> on SHPtry started to development the largehydro power plants, the small hydronow speak about the existence of twopower grids in Tajikistan which are2. Perspective of development.Further development of the powerpower plants stopped to run becausethe large power plants more economicdevelopment than the smallhydro power plants.In 1957 became operational theKayrakkum hydroelectric station onthe Syr Darya , with a 126 MW capacity.The latter, with its active storageamounting to 2.6 billion cubicmeters, made an important contributionto the development of powerindustry and irrigated farming in thein the republic.Three more hydroelectric stationswith an installed aggregate capacityof 258 MW were built in the southernpart of the republic from 1957 to1965. The first of the three stations,the Perepadnaya hydroelectric station,with a capacity of 30 MW, becameoperational in 1958, marking thebeginning of efforts aimed at harnessingthe water power resourcesof the Vakhsh river. The then largesthydroelectric station, the Golovnayastation, was commissioned on theVakhsh in 1962- 1963. It has an installedcapacity of 210 MW. In 1964the Central hydroelectric station wasbuilt on the tail race of thePerepadnaya station, with 18 MWcapacity.conventionally called the southernand northern grids, the watershedbeing the Gissar Range.The then largest hydroelectricstation, the Nurek station, was commissionedon the Vakhsh in 1979. Ithas an installed capacity of 2700 MW,average annual production – 11,2billion kWh, with its active storageamounting to 4,5 billion cubic meters.More than forty ethnic groupsparticipated in the construction ofthe power station.This chain includes the functioningBaipaza hydroelectric station. Ithas an installed capacity of 600 MW.In the 1985 Government was planto development electrification to remoteand mountains Area with thelocal resources. By small hydro powerand another renewable energy plants.After 10 years on small hydropower plants the country was completedwith the total installed capacity– 15.400 kW could provide.The present, republic has 17 thesmall hydro power plants, with theinstalled capacity 31.400 kW withannually energy supply 130 GWh.The developing small hydropower plants in the country were veryusefully and effectively for developingindustry in the republic relies heavilyon its abundant water power resources.The hydroelectric power industryof Tajikistan, which depends on theoperation of the Vakhsh chain ofpower stations, is inseparably linkedwith irrigation of new farm lands inthe south of the republic, Uzbekistan,and Turkmenia. Therefore, the Rogun(3600 MW) and Sangtuda (670 MW)hydroelectric stations, which are currentlyunder construction, have tremendousimportance for entire CentralAsia. The Sangtuda hydroelectricstation will be followed by theconstruction of the Shurab, andDashtijum plants.The Gorno-Badakhshan AutonomousRegion occupies an exceptionalplace in the republic. Here, high inthe mountains, all the main rivers ofTajikistan originate. It is feasible toconstruct here a hydroelectric stationwith a capacity up to 100.000 kW,since the geography of the regionprevents their interconnection withthe national grid.In 1997 Government has appointedthe small hydro power Associationof country, which looks anddevelops :The development efforts, however,Social-Economic condition in - the small hydro power plant ofwere not limited to the constructionmountainous area.country;and expansion of power plants; The installed capacity of power - the main thing of this Associa-much emphasis was laid on transmissionlines and substations all overTajikistan. The first, 110 kV, transmissiongenerating facilities in the republicamounted to 4.412 thousand MW in2001, producing 14.336 billion kWhtion works on investigation, design,construction and exploitation of theprojects;line was built there in 1948. of electricity, and over 98% out of - the association supply technicalTransmission lines and substationof 220 kV and higher voltage classeshave been built since 1958.Tajikistan was one of the fist tointroduce cable-suspended wires onthe 110 kV mountain transmission linein the Varzob valley.The network of transmission linesin the republic is such that we canthat is produced by hydropower station.The energy system of Tajikistanis a part of the Central Asia /SouthernKazakstan regional network andis designed for 500 kV and is coordinatedfrom the dispatcher center inTashkent.support and equipment for the smallhydro power plants on country.All of problem in mountainousArea of country should solve andapprove on the real constructingprogram with small hydro powerproject for developing mountainousArea in future time.16 SHP News, Winter, <strong>2002</strong>

SHP in ChinaSENROLMENT INFORMATION2003 <strong>TCDC</strong> <strong>Training</strong> Course on Small Hydro Powerponsored by the UN and Chinesegovernment, HangzhouRegional Center for SHP (HRC) aimsat promoting the SHP developmentin the world. China has most SHP stationsand has gained much experiencein SHP development. In order to disseminateSHP technology, HRC hasalready held with success 36 trainingworkshops for over 600 participantsfrom 70 countries.1.Objectives: To master the basictheory and principles of SHP development,feasibility study, operation,maintenance etc..2.Date:From 9 May to 18 June 2003,Hangzhou, P.R. China.3.Venue:Hangzhou Regional Centerfor SHP, Hagnzhou, China.4.Course Contents: Procedures ofSHP development, feasibility study,hydrological analysis, low-cost civilstructure, turbo-generator units andauxiliary, electric design, automation,economic evaluation, operation, maintenance.5.<strong>Training</strong> Methods:Lectures, discussions,field trips & seminar.6. Medium of Instruction:English7.Source of Trainees:SHP personnelor officials worldwide8.Methods for Evaluation: presentingcountry report on SHP9.Participant’s Qualifications andRequirements for Admission:Theapplicants should be under 45 yearsold, graduated from technical schoolswith two years’ SHP practice, be ingood health with no infectious diseasesand not handicapped, be proficientin English; prepare a review paperor report on SHP development ofthe participants’ country, not to bringfamily members to the training course,to observe all the laws, rules and regulationsof P.R. China and respect theChinese customs.10.<strong>Training</strong> Expenses:The expensesof training, boarding and lodging, localtransportation, pocket money ofRMB 30 Yuan per person per dayduring the training period in Chinawill be borne by the Chinese governmentand distributed by HRC. Theinternational travel costs includinground trip tickets, transit fares, theexpenses of medical care, insurancefor the participants are covered bythe participants themselves.11.Application and Admission: Nominatedby their respective governments,applicants are requested to fill up theApplication Forms, which should beendorsed by the departments concernedof their respective governments,and submit with valid Health Certificateprovided by authorized physicians orhospitals to the Economicand Commercialcoun-sellor’s Office of Chinese Embassy(ECCOCE) for examination andendorsement; If endorsed, AdmissionNotices will be issued to the acceptedparticipants by ECCOCE through therelated government departments. WithAdmission Notices, participantsshould go through all necessary formalitieswith all the mentioned documentsto China on the registration date.12.Insurance:The training course organizerdose not hold any responsibilityfor such risks as loss of life,accidents, illness, loss of propertyincurred by the participants duringthe training period.13.Liaison Address:Attn:Mr.D.Pan& Ms. Shen XuequnHangzhou Regional Center (Asia-Pacific) for Small Hydro powerHangzhou, P.R. China, 310012;Phone:0086 571 88086586Fax:0086 571 88062934E-Mail:hrc@mail. hz.zj.cnWeb Site:www.hrcshp.orgSHP News, Winter, <strong>2002</strong> 17

The Chinese “Small Hydropower”,a magazine that NationalResearch Institute for RuralElectrification (NRIRE) andHangzhou Regional Centre (Asia-Pacific)for Small Hydro Power has editedand published for 105 issues (bimonthly),allocated with the InternationalStandard Serial Number ISSN1007-7642, and China Standard SerialNumber CN33-1204/TV. It waspublished in Chinese and with Englishtitles. Special features are technicalexperience of SHP developmentSHP in ChinaA Chinese Magazine“Small Hydropower” by HRCin China. Information of internationalSHP activities and important eventsin the field of SHP have also beenwidely included.This magazine has carried news,views and articles on all aspects ofsmall hydro power. It is useful to thosewho are intersted in technical experienceof SHP development in China.“Small Hydropower” is the onlyprofessional publication on small hydropowerin China, which is issueddomestically and abroad. It is widelycircled in all corners of China concerningSHP, and getting more and morepopular in over 600 rural countieswhich is primarily hydro-electrified,more than 2,300 counties with hydropowerresources, more than 50,000small-sized hydropower stations,thousands of colleges or universities,research institutes and other administrativeauthorities on SHP. Advertisingis welcome for any equipmentmanufacturer to target Chinese marketon SHP construction, equipmentpurchasing or other businesses.Subscription rates (1 year):USD40.00The main contents of the 105th issue (<strong>2002</strong> No 3) read as follow.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Working ResearchDevelopment of rural electrification for thriving and prospering western seacoastof the Taiwan StraitsUnite efforts for rural electrification of Jiangxi provinceAchievement and prospect of rural electrification of Xinjiang Uygur ZizhiqnManagement and AdministrationManagement and benefits of Wantang SHP stationTechnologh ExchangeFormation cause of concrete liner cracks of delivery tunnel gradual section in Daaowater power projectControl of facing flat cracks in Heiquan reservoir reinforced concrete facing damAccident analysis and treatment of delivery tunnel lining in Caoceng SHP stationApplication of unusual installation in SHP stationMechanical and Electrical EquipmentDesign characteristics of hydro-machinery in Maoshuidong SHP stationImprovement of GD002-WP-100 bulb tubular water turbineInstallation and regulation of hydraulic gate hoist of Qingshandian SHP stationComputer ApplicationAutomation system of Roujixi second-step SHP stationReliablity design of microcomputer monitoring system in Shafan secod-step SHPstaionCommunication modes in SHP monitoring systemPrinciple and advantage of auto-paramilitary synchronousRenewal and ReconstructionCapacity increase and benefits of Feng-Yan 35kV transmission lineCapacity increase of Dongfanghong SHP stationReconstruction of collecting well in Ancheng SHP stationService and MaintenancePhysical procedure of fault of triphase half-control bridge rectifierTreatment of fault lead by transformer connecting line in Sanjia SHP stationCrack treatment of penstock in Yegoumen SHP stationTreatment of abnormal phenomena of turbine in Panjiakou SHP stationFault treatment of governor in Laohugou SHP station18 SHP News, Winter, <strong>2002</strong>

SHP in ChinaA Chinese Magazine“Small Hydropower” by HRCThe main contents of the 104th issue (<strong>2002</strong> No 2)Working ResearchOpen up a new prospect for water power electrification in Sichuan provinceDevelopment of electrification construction in fifteen yearsDevelopment of rural water power and electrificationManagement and AdministrationComment on electrical price in rural areaDevelopment idea and methods of Guanyinshan reservoirTechnical measures for cutting down network loss in rural areaProgramme and DesignProgramme of Laoguanhe Shimeng key water power projectDevelopment and construction of Luoqingjiang riverCascade exploitation of Qianshanhe river basinOptimization of development plan of Longtan second power stationConduit design of SHP station in mountainous areaProject ConstructionCollapse treatment in tunnel of Bu’ao power stationRenewal and ReconstructionRelaying protection of low-voltage turbine-generater and its improvementEnlarge capacity improvement of Erkou power stationTechnical renewal of water colling system of turbine-generator in canal headworkspower stationRenewal of oil leakage at blade pivot in adjustable blade propeller turbineBenefits by renewal of flexible cupling of No1 unit in Panjiakou power stationImprovement of self-start loop of oil pump motor of YJ-regulatorPoints for attention in fixed directly position of scroll case by winding engineService and MaintenanceAbrasion resistance and cavitation preventive of bottom flood-discharge outletof Fenghe second reservoir damRelay non-operation caused by parallel resistane loss of intermediate relayConstruction technics and maintenance of curtain grouting for dam of FengtanreservoirThe main contents of the 106 issue (<strong>2002</strong> No 4)Rural ElectrificationSHP construction and development in Rongshui Miao autonomous countyMake mountainous area poor county prosperous out of poor by rural electrificationconstructionWorking ResearchSubsistence and development of SHP under main supply networkOptimizing operation of Yaotian SHP stationEngineering supervise system of SHP projectOptimum administration mechanism for speeding up basin exploitationProgramme and DesignStructural design of small low head tubular water workshopBodily form of shaft pillway in Xiamen reservoirSelection of electrical main connection and switchyard in 110 kV substationComprehensive evaluation and suggestion of construction elements of Ximenpower stationCalculation loans in financial evaluation of Bailianxia reservoirComputer ApplicationRegulator with microcomputer and its application in SHP stationCommunication system based on peer to peer LAN for the water tuibine testRenewal and ReconstructionRenewal of runner in Dongfanghong SHP stationEnlarging capacity of Lianhua SHP stationImprovement of automation loop in regulatorTechnical renewal of guide bearing in SHP stationService and MaintenanceServise and maintenance of bulb water turbine generator out of opetation for longtimeKilling snail in cooling water system of power station by killing snail paintFixed blade axial flow water turbine is not suited for running with low loadRemoval earthed breakdown in direct current systemTreatment of breakdown by reactor in SHP stationThe main contents of the 107 issue (<strong>2002</strong> No 5)Working ResearchDevelopment and prospect of local hydropower in Gansu provinceImprove organisms’habits environment with development of clean energy sourcesSpeed up hydropower industry with waterpower resources exploitationManagement and AdministrationOperational management of dam of Mingyangguan SHP stationTo be liminated in the end in Xinzhuang SHP stationTechnology ExchangeCrack treatment of dam of Taojinping SHP station engineeringCrack epoxy resin grouting in stone masonry arch dam of Maotan SHP stationConstruction technique for treating channel collapse in Duojiashan SHP stationApplication of local material in hydroelectric power engineeringControlled parts of air rubber dam and its operation managementMechanical and Electrical EquipmentLightning protection of microcomputer monitoring and communication systemin Shafan second step power stationEconomic benefits of Zhoutou 35kV transmision project developmentPublished by Small Hydro Power Editional Office,The National Rural Electrification Institute,Hangzhou Regional (Asia-Pacific)Center for Small Hydro PowerISSN 1007-7642CN33-1204/TVImprovement of governor auto-circuit in Panjiakou flood control power stationComputer ApplicationRenewal of governor system in Shimenkan SHP stationRural electrification database management system in Yinzhou areaRenewal and ReconstructionSelection of technical renewal programme of Muchang SHP stationCapacity increase of turbine unit in Jingkou SHP stationTechnique renewal of turbine-generator in Jiaokou SHP stationCapacity expanding-a measure for increasing economic benefits of SHP stationService and MaintenanceLoosened reason of magnetic yoke key of 25MW turbine-generator and its serviceApplication of high grade granolithic concrete in wash channelInspection and maintenance of excitation transformer fuse frequently blewTurbine isn’t stop statically-Reason analysis and its serviceFault analysis of generator in Dongfanghong No 1 SHP stationAdd.: P.O.BOX1206, Hangzhou, ChinaZip code:310012Tel.:86-571-88082848Fax.:86-571-88082848E-mail:shpnews@hrcshp.orghttp://www.hrcshp.orgSHP News, Winter, <strong>2002</strong> 19

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China is a countrywith abundant water resources, andthere is a huge potential for its development.By the end of 1999, in Chinaalmost l/2 of the territory, l/3 of thecounties which equal to l/4 populationmainly account on the electricpower from hydropower stations,thus make over 300 million peoplebenefited. But now the installed capacityof hydropower exploited isonly 19.3% of the exploitable, a smallportion compared to the total amountof rich water resources. Especially inthose western regions where 72% ofthe total potential is located, the exploitationrate is less than 10%.As a renewable and environmentallysound energy, the developmentof the medium & small-sized hydropoweris to be strongly supported bythe central government. During the10th Five-year Plan , China willfurther promote SHP development,and it is planned to newly increasethe installed capacity of SHP by 6GWin those 5 years, with 400 rural countieshydro-electrified, so that morethan 99% of the villages can be accessibleto the electric power, and theper capita power consumed and thepower per household can be 400kWand 600kW respectively.China to spend billions on smallhydro upgradesChina’s State Council has approveda five-year programto spend 70 billion renminbi (US8.4 billion) to upgrade small hydroplants in 400 counties.The government-backedChina Daily quoted water officialsannouncing the program to boostrural economies. provide powerto mostly western off-grid communities,and to reduce air pollutionfrom burning of wood and fossilfuels. Up to 30 percent of the totalfunds are to come from the state,with the remainder raised by localunits.China has implemented smallhydro plants of capacities up to50 MW to provide electricity tomillions of rural homes. One fourthof China’s population is served annuallyby the 80 billion kWh fromsmall hydro. The rural electrificationprogram has provided powerto 653 rural counties. In the latestprogram, 400 counties’ hydroplants are to be upgraded through2005.5 Billion RMB Yuan into Rural SHP in12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678Hubei Province12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678From the Department of WaterResources in Hubei Province,it is noticed that 5 billion RMB yuanshall be put into the development ofrural SHP there, and by the end of2005 each village will have access tothe electric power. The water resourcessectors in Hubei are alwayssticking to the policy of the rural hydropowerdevelopment combiningthe river conservancy, the ecologicalprotection and the poverty relief. Presently,the rural hydropower developmenthas already been an importantpillar industry in modernizing the hillyregions of Hubei as well as the keyproject in poverty alleviation. Accordingto the statistics, recently HubeiProvince devoted a lot to the ruralhydropower development and theinstalled capacity has totaled l.46GWwith the annual generation of 4.29billion kWh, which makes l/5 of thetotal population, l/3 of the agriculturaland industrial sectors accessible tothe electric power. In those 27 ruralcounties with the preliminary hydroelectrification,the GDP, financial income,the per capita income of farmersand the per capita power consumeddoubled in past five years.Proposal for western Chinaprojects advancesSeveral off-grid hydroelectricplants ranging from 10MWto 20 MW are to be built in China’sGansu Province as part of a proposedWestern Region Small Hydropowerand RuralElectricfication Program to increaseelectricity supply to ruralareas near Langzhou.The Asian DevelopmentBank completed a fact-finding missionearlier this year to help determinewhether to provideUS$950,000 to review and upgradea feasibility study for the program.In addition to the several offgridhydro plants ranging from10MW to 20MW each, the programcalls for construction of tworun-of-river hydro plants, 90MWChaijiaxia and 90MW Hekou.20 SHP News, Winter, <strong>2002</strong>

SHP Development and Programme WorldwideMicro hydro in Sri LankaA strategy for empowering disadvantaged ruralcommunities in Sri Lanka is now gaining both nationaland international recognition. The objective ofthe Electricity Consumers’ Society-is to enable communitiesto have their own renewable energy source,of which they have control in all aspects. M.A.LAHIRUPERERA and TILAK W.KARUNARATNE report.Sri Lanka has been an agriculturalcountry for over 2500years. Water being a prerequisite foragriculture, the country has long possesseda highly developed irrigationsystem. Consisting of hundreds of storagetanks, this system collects waterfrom rain and streams and uses it togrow rice, the nation’s staple food. Yetthe irrigation system was never usedas an energy source or to run machines.Historically, the energy source forSri Lankans was fuel wood, which wasavailable in abundance. There was nocentral system to supply firewood-findingit was the individual family’s responsibility,but the needs of each familywere not great. There is no archaeologicalevidence that points to the existenceof a centralized system for provisionof energy, or for the use of fueloil, coal or electricity in the country.This situation, however, started changingin the nineteenth century. The establishmentof a public electricity system(1895) and the introduction of microhydro power to process tea leavesin the plantation sector (1940) were themain turning points.Soon, the number of micro hydropower units started increasing, gradually,and by the 1940s, there wereabout 500 such units-all using importedequipment-in operation. Theaverage plant size was about 75kW,and matched a factory’s annual demandfor power. The 1940s and1950s also saw a vast developmentin the major hydro power sector inSri Lanka. Several of the large-scalestorage hydro schemes, such asLaxapana and Gal Oya, commencedoperation during this period. Thesemajor hydro schemes produced electricityin such quantities that theGovernment encouraged factoriesrunning on village hydro to switchto the grid, with transformers providedon favourable terms. Anotherreason they switched to the maingrid electricity was that it had greatercapacity, and so allowed for expandingproduction.The changes in people’slifestyles in the post-colonizationperiod made them look for efficientand less cumbersome ways of doingtheir work. This compelled themto use energy sources other thanbiomass, for both domestic and industrialpurposes, creating a newdependence on energy sources suchas electricity and fuel oil.By 1985, 35% of the populationhad access to the national electricitygrid, while major hydroschemes accounted for around 85%of the country’s electricity supply-althoughonly 5% of the estate-ownedhydro schemes that had been functioningin the 1940s were still operating.Seeing the importance of alternativeenergy in the future, ITDG-South Asia started work on villagehydro in 1990.However, the position of hydropower changed in 1996, when thelong drought that prevailed in hydroreservoirareas resulted in power cutsfor up to six hours a day. The inadequatepower compelled the government-monopolyCeylon ElectricityBoard(CEB) to increase power generation,mainly through use of thermaland gas sources, since almost allbig hydro power potential wastapped. The use of imported fuelcaused electricity price hikes and adverseenvironmental effects. Thesedevelopments emphasized the needfor alternative energy sources, whichwould be environmentally friendlyand can serve the poor. This latterconsideration is very important in acountry where over 50% of the populationare recipients of governmentsubsidy.Contextoday, Sri Lanka has a populationof 19.1 million, of which70% live in rural communities. In meetingthe people’s energy needs, indigenoussources of biomass accountfor 71% of all energy (a survey revealed98% of rural houses use fuelwood for cooking). Oil, meanwhile,which is entirely imported, accountsfor 19%, with kerosene used for lightingmost of the rural houses. TheSHP News, Winter, <strong>2002</strong> 21T

other main source-electricity-onlyprovides 10% of the total consumed.About 54% of the populationhas access to grid electricity, withmost of this figure living in urban areas.A far smaller proportion of therural population has grid access, thelow population density and the hightransmission costs making powersupply for remote areas unviable.Many rural families are without electricityat present and for the next fewyears at least, if not more permanently.In the wake of annual demand for electricitygrowing at 10%, the main supplier,CEB, is faced with a necessaryevil-thermal power-which has longtermconsequences for the environment,health and the government coffers.ITDG interventionIt is this context that there hasbeen a renewed interest in nonconventionaland renewable sourcesof energy. The Energy Programme ofthe ITDG-Sri Lanka (now ‘ITDG-South Asia’) identified this need, andtook the following measures:introduction of micro hydro (MH)power as a decentralized source ofenergydeveloping a strategy to promotethis form of energy publiclyestablishment of a sustainablesystem that can be implemented,managed, operated and maintainedby the people, to continue theproject’s role.SHP Development and Programme Worldwideresolving the engineering andtechnical issues pertaining to theMH projectsdesigning and implementing MHprojectsavailability of subsidies and fundingimproving the quality and benefitsof the project outputsreplication of village hydrocapacity-building of public and privatesector organizationscollection and dissemination of informationinfluencing policymakers to promotemicro hydro power generationconceptsinternational networking to shareexperiences.The strategy-an ElectricityConsumers’ SocietyThe process began by identifyingremote villages withoutaccess to electricity but with the potentialfor hydro power. Once the villageswere located, the EnergyProgramme of ITDG-South Asia andits Technical Advisory Committeeconducted further studies with thesupport of villagers. If there were sufficientresources for a village hydrounit, the Energy Programme visitedthe village and discussed thecoummunity’s energy needs with regardto the means to fulfil them. Thepossibility of using the water powerwas also taken up, leading to thetopic ‘village hydro’. Such visits andlong discussions, supported by visitsto existing village hydro projects,eventually convinced the people thatthey could utilize water power.Driven by the desire to haveelectricity, villagers formed themselvesinto a social organizationcalled the Electricity Consumers’ Society(ECS). The ECS then took timeto discuss and develop an action planaddition, the ECS prepared an estimateof costs for setting up a unit,and started raising funds throughcontributions.More often than not, it was thewomen and children that were involvedin meetings, in planning theproject activities, and in the implementation.For example, women andchildren decided the dates for someconstruction activities for which theyprovided labour. When deciding asto which rooms are to be lit in a particularhouse, it is again women andchildren that take the lead in decisionmakingrather than the men, who wereinstead involved in the heavy workcomponent.ITDG-South Asia’s role wasspecific and limited to facilitation. Itassisted people by giving technicalinformation at ECS’s discussions andby being a referee when the clearancefrom government authorities, to utilizewater sources, was sought after.ECS consists of members of the villagecommunity. The team from ITDG-South Asia was composed of a fewstaff members, assisted by a volunteerTechnical Advisory Committee(TAC). With the ECS and ITDG-SouthAsia together, the process of initiatingvillage hydro began.Because the prospective locationsof village hydro were in remoteand hilly terrain, accessing the locationwas very difficult. The ECS facedthis at all stages of the work-constructingthe power house, transportingthe machinery and laying thetransmission lines, etc. It tookmonths, sometimes even years, ofworking and overcoming setbacks,for the ECS to complete the wholeexercise. Often, it was only the sheerdetermination of both parties thatmade hydro a reality.In this way, village hydro unitswere built and started operating. TheyThe result was the formulationand implementation of a specificproject, Village Hydro, from 1994, asan alternative to conventional energysources. The project, which aimed toimplement micro hydro in a villagesetting, possessed the followingcomponents:development of local capacity for initiating a village hydro unit. In are owned, managed, operated and22 SHP News, Winter, <strong>2002</strong>

SHP Development and Programme Worldwidemaintained by the community-runECSs. Being a collective of people,the ECS enabled the beneficiaries todevelop and control hydro power asa local resource, increasing thepeople’s autonomy. For instance, itwas the ECS that developed institutionalmechanisms and the tariff structuresfor each village hydro scheme,with ITDG-South Asia’s support.These tariff structures regularized thelevies and became a useful tool in assessingvarious aspects, such as economicviability, members’ welfare,end-use products, sizing and designof the schemes.The tariff equation is deliberatelydesigned to include factors likenumber of houses, because this helpsmake socially beneficial decisions. Forexample, it is possible to choose betweenone design approach whichlinks more houses to the hydro, andanother that links fewer houses butoffers employment to a few poorervillagers.ITDG-South Asia’s experienceis that all hydro power equipmentused in plantations was of foreignmanufacture which, although it generatedpower, did not help in buildinglocal technical capacity. Furthermore,the local manufacture of small hydroequipment was inhibited. Nobodyhad specialist expertise in village hydro,so improving the local capabilitiesthus became imperative to thedevelopment of village hydro. Accordingly,several on-the-job trainingprogrammes were conducted byITDG-South Asia, and the capacityto design, install, maintain and operateunits was established. Two majorachievements of these programmeshave been:the capacity-building of six localmechanical workshops to manufacturehydro turbines and the affiliatedcomponents with locallyavailable materials, and to produceand adapt equipment fromexisting designsthe development of a village hydromodel in which the technology,cost and management componentswere simplified sufficientlyenabled the villagers tohandle most of the work locally.In developing the technical capacity,the approach was to train sometechnicians whose potential had beenidentified through comprehensivescreening. The training covered severalareas, including the redesign andmanufacture of the equipment-turbinesand the generators, singlephaseinduction generators (rewiredfrom three-phase induction motors,locally assembled and available in themarket), induction generator controllers(manufactured from electroniccomponents found in the local market)and so forth. As Sri Lankans arefamiliar with maintaining and operatingthese machines, this was foundto be a more sustainable approach tovillage hydro than using the importedequipment.With technical skills developed,a village hydro model made and amechanism for people’s involvement(i.e. ECS) established, the project initiatedfour pilot village hydro sites,and then moved into the village hydroreplication process. This too wasa difficult and time-consuming process,since a little modification wasrequired when installing a village hydrounit, to suit it to its location andwater source. The outcome was theconstruction and operation of 75 villagehydro schemes by August 2000.Of these village hydros, one is in atea estate serving the estatelabourers’ families, and another is oflow-head technology, a pilot schemeinitiated for testing purposes. Theschemes possess an accrued capacityof over 400kW, and provide electricityand the associated benefits to2000 poor and under-served familiesin 75 underprivileged villages.Generally, the ECS membershave contributed over 40% of totalcosts by carrying out civil works, wiring,installation and laying the transmissionlines for all village hydroschemes. Skilled, indigenous castingtechnology was moulded into themanufacture of turbines. Masonryexpertise was easily available, norwas it difficult to procure anelectrician’s service for the work. Thevillage contribution as a whole consistedof cash, materials and labour.The main part of the funding for theschemes, however, came from varioussources such as the government’sEnergy Conservation Fund and theJanasaviya Trust Fund, local governmentauthorities and Provincial Councils.ITDG-South Asia and a TAC(technical advisory committee), consistingof experts from research institutionsand the private sector, renderedthe technical support.Since the entire project processwas new to the country, the experienceearned from the work was consideredvaluable to both ITDG-SouthAsia and the donors that funded theproject. The lessons learned werethus documented and shared with theothers concerned, at seminars, workshopsand at staff exchange visits,at local, regional and internationallevels. At present, the subject of villagehydro is addressed by severalpublications, including evaluationreports. In fact, the Sri Lankan experiencein village hydro contributed inno small measure in the productionof ITDG’s publications on the subject.The experience showed that theinitial investment for village hydro is,from the villagers’ perspective, highenough to seem unaffordable. Thisnecessitates the provision of initialSHP News, Winter, <strong>2002</strong> 23

SHP Development and Programme Worldwidecapital, or at least a part of it, externally,to make village hydro affordableto the people that most need it.This can either be a subsidy or a loanat low interest rates, depending onthe project and the community capacity.In fact, as a result of the successfuldevelopment of village hydro byITDG-South Asia, the DFCC Bank(formerly known as Development FinanceCorporation of Sri Lanka) hasalready introduced a credit schemelong concept of sharing. Despite thevery limited capacity of village hydro,beneficiaries shared their allocationof power when the neighbourswere in need of more energy, for instance,during weddings or funerals.The ECS’s regulations partly helped,too, in creating a bond among beneficiariesthemselves. It was hearteningto note that some ECSs providedfree or subsidized connection to themost deserving amongst themselves,projects preserves the relationshipbetween the forest cover, the environmentand the village hydro. Besides,each ECS, and the village hydrothat were developed by ITDG-South Asia, took pains to protect theenvironment and preserve the climateand ecology. Efforts have alwaysbeen made to leave the natural beautyof the sites intact.Project resultsthat provides loans for village hydro, and continued doing so in similarof which a quarter is a grant through cases.he ‘Village Hydro’ project hadthe Global Environment Facility The tariff collected from beneficiariesT established and monitored 75(GEF), with the support of the WorldBank.A factor worth considering inprovision of incentives is hydro’s financialviability, which partly dependson the ability to convert thegenerated energy into revenue. Villagehydro can be more productiveand therefore, more affordable, if itcan power a community-run machine,as with the Katepola village hydroproject, for instance, where a rice millis operated.The average electricity supplyfrom village hydro is about 100W perhousehold. This enables the lightingof five 20W fluorescent lamps, twoof which are switched off when ablack-and-white television isswitched on. The members’ main responsibilityis to adhere to the ECS’sregulations governing power distribution,including the payment of amonthly fee. Defaulting on paymentsand the unauthorized use of power inexcess of allocation invariably leadsto a fine, and, in extreme cases, thedisconnection of supply, though recourseto the latter is rare.The ECS and the village hydrohave, in most cases, improved socialcohesiveness among the beneficiaryfamilies. Hydro power distributionwas no exception to the village culture,based as it is on the generation-has formed a community fund.The ECS has managed this fund,which was used mainly in paying thebank loan, if there was one, and inthe maintenance and repairs to villagehydro, when required. Some ofthe ECSs have invested a part of thefund in leisure and income-generationactivities, displaying their inventivenessin maximizing the benefits. Oneexample is the purchase of musicalinstruments from the ECS fund, traininga number of villagers to play theinstruments and hiring out the trainedmusicians with the equipment, forfunctions and on payment. This waspart of the ECS of Isanawatte villagehydro scheme, which enabled eachmusician to earn 150 Rupees(US$1.65) per function-day.One other outcome of the ECSwas the growth of environmentalawareness in the beneficiary community,especially among children. Therewere communities that carried outtree-planting in the catchment areasto prevent soil erosion and to increasethe shade. Some others became alertto illicit timber-felling, and protectedthe tree cover that affects the watersource of village hydro. The mandatoryrequirement for permission fromthe Forest Department and the CentralEnvironmental Authority(CEA)when setting up village hydrovillage hydro installations by August2000, and the figure rose to 89 installationsby 31 December of that year.The first 75 installations, for whichdata is available, have an accruedcapacity of 415kW and work, on average,for 9 hours each day for 30 daysa month-i.e. only for lighting-with theresults that can be seen in table 1.2562 households-i.e. approximately12,810 individuals-whopreviously had no access arenow provided with electricityprovincial councils, local governmentsand the banks (six intotal) included village hydro intheir work plans andprogrammesseveral publications-includingthe ITDG annual and internationaljournal on renewable energy‘E-net’ –were disseminatedamong about 5000 individualsand agencies in 25 countrieseach village hydro installationconsists of three constructions:a small weir, forebay tank and apower house to accommodatethe machinery and electricitydistribution panels. Sometimesvery rarely, civil works are requiredfor the tailraceinnovative solutions were found24 SHP News, Winter, <strong>2002</strong>

SHP Development and Programme Worldwideby way of enhancing local understandingof aspects of villagehydro-such as local survey,designing, manufacturing, operationand maintenance capabilities,and the participatoryproject implementation-whichall proved a successinnovative products sold includedcurrent cut-outswitches, induction generationcontrollers(IGC), energy-savinglamps and electric ballasts forfluorescent(tube)lightsthe ITDG country programmehas undertaken a considerablenumber of renewable energyprojects other than village hydro;for example, solar-hydroenergy mix sites, wind-biogashybrid systems and individualwind, biogas, estate hydroprojects and grid-connectedmicro hydro projects.ConclusionThrough several years of hardwork with the rural communitiesin Sri Lanka, ITDG-South Asiahas identified and proved a novel andsustainable strategy for empoweringthe disadvantaged communities. Theobjective of the strategy-the ElectricityConsumers’ Society-is to enablecommunities to have their own renewableenergy source, of which theyhave control in all aspects. The mostsignificant aspect of the strategy isthat ECS has, while finding an effectiveand alternative energy source likevillage hydro, made the energy supplya community responsibility,thereby making the community independent.The experience gained has beenshared with the governmental officers,the NGOs, banks, multilateralagencies and the individuals interested,through seminars and observationvisits to village hydro sites.The result was that ITDG-SouthAsia’s work and the strategy in thevillage hydro sector has been recognizedby many, both nationally-by theGovernment of Sri Lanka-and internationally,after further research onthe work. The World Bank has for thefirst time accepted the ECS approach,by including village hydro in its EnergyService Delivery Project(ESDP).This is in addition to the ITDG-SouthAsia’s own achievements, such as developingand sustaining the villagehydro technology, and inclusion ofvillage hydro in the National EnergyPolicy.The next important steps for theECS’s future are as follows:to review its efforts to produceand share energy, and get thesame replicatedto develop the grid-connectedvillage hydro schemes, man-aged and maintained by theECSs as an income-generatingproject for other village developmentworkcontinuous monitoring of theproject.Essentially, this is an effort toshare its capabilities with others,while consolidating the currentachievements.Despite all these efforts, it is stillthe bottle lamps that provide light forover a half of the 3 million students inSri Lanka as they study; it is still theimported mineral oil that provides fuelfor over a half of Sri Lanka’s populationof 19 million. The time has nowcome to put a stop to that dependencythrough use of locally available energysources. A new era of empowermenthas dawned, which will be fullyrealized only when this ‘powerless’46% of the people has gained accessto an environmentally friendly and efficientpower source, perhapsthrough the implementation of manymore village hydro schemes.M.A.Lahiru Perera is RegionalDirector-South Asia for ITDG.Fax:+94 1 856188e-mail:lahiru@itdg.lanka.netTilak W.Karunaratne also works forITDG.e-mail:tilakk@itdg.lanka.netReferencesTable 1. Energy generated and fuel use/emissions avoided (diesel thermalenergy content assumed to be 42 MJ/kg) 1,2Result Per month Per yearElectricity generated(MWh) 112.05 1,344.60Energy saved(kWh) 112,050 13,446.00Fuel diesel saved(kg) 28,812.86 345,754.32Fuel diesel saved-tons of oil equivalent(ToE) 28.80 345.60Carbon dioxide(CO 2)avoided, in tons 90.41 1,084.921.Perry, Robert H. & Green, DonW.Perry’s Chemical Engineer’s Handbook.McGraw-Hill, 1999.2.Avallone, Eugene &Baumeister III, Theodore. Marks’Standard Handbook for MechanicalEngineers. McGraw-Hill, 1996(10 thEdition).Source: Renewable Energy WorldSHP News, Winter, <strong>2002</strong> 25

SHP Development and Programme WorldwideSMALL HYDRO POWER: AN INDIAN EXPERIENCEV Bakthavatsalam*Of all the non-conventional renewableenergy sources, smallhydro represents ‘highest density’resource and stands in the first placein generation of electricity from suchsources throughout the world. Globalinstalled capacity of Small Hydrois around 50,000 MW against the estimatedpotential of 780,000MW.India has a history of 100 years in Small Hydro. Howeverthe country switched on early to large hydro and pursuedthe same reaching an installed capacity of 21,000 MW withonly 500 MW of Small Hydro. Of late, environment drivenawareness seems to have reminded us that what Indianeeds is not the mass production but production by masses.The advantages of small hydro is so large that plannerssee investment in its development as prudent. IREDAs effortsin this direction has seen capacities develop amongthe stakeholders, justified in the World Bank’s second lineof credit.Small Hydro is environmentallybenign, operationally flexible, suitablefor peaking support to the local gridas-well-as for stand alone applicationsin isolated remote areas. Even ifwe ignore the CO 2abatement costsand ‘acid rain’ abatement costs etc.,of conventional thermal route, smallhydro is benevolent on the followingknown hard facts of economics.Short gestation and limited investmentsof Small Hydro are affordableby the private sector, enablingquicker electricity and economic returns.Fiscal incentives by CentralGovernment and policy framework byState Governments are attracting privateinitiatives in Small Hydro. Satisfiedby the progress made in implementationof the first line of credit fora target of 100 MW of capacity addition,World Bank has extended an additionalline of credit amounting toUS 110 million for development of200 MW Small Hydro Power Capacity.The World Bank second line ofcredit which is operated in an entrepreneurfriendly environment is likelyto spin off an entirely new technocommercialscenario paving the wayfor attractive business opportunity inSmall Hydro.INDIAN POTENTIAL OF SMALLHYDROndia has one of the world’sI largest irrigation canal networkswith thousands of dams. It hasmonsoon fed, double monsoon fedas well as snow fed rivers and streamswith perennial flows. An estimatedpotential of 15,000MW of Small Hydroexists in India. The data base createdby MNES includes 4,096 potentialsites with an aggregate capacityof 10,071 MW as given in table 1.SMALL HYDRO DEVELOPMENTIN INDIAhe first Small Hydro Project ofT 130 kW commissioned in theHills of Darjeeling in 1897 marked thedevelopment of Hydro Power in India.The Sivasamudram Project of4500 kW was the next to come up inMysore district of Karnataka in 1902,for supply of power to the Kolar GoldMines at 25 Hz. The pace of powerdevelopment including hydro wasrather tardy. The planned developmentof Hydro Projects in India wastaken up in the post independenceera. This means that the 1362 MWcapacity (including 508 MW hydro)installed in the country before independencewas mainly coming fromSmall and Medium size projects. Thestatus of implementation as of March2001 is shown in table 2.GOVERNMENT SUPPORT TOSMALL HYDROovernment of India, throughGits full-fledged Ministry ofNon-Conventional Energy Sources(MNES) formed in the year 1992-theyear of Rio Summit on Environmentand Development, is extending multidimensionalsupport to the developmentof mini hydels (upto 25 MW)as one of the environmentally benignrenewable energy technologies, keepingin tune with the Government’soverall thrust on liberalisation ofeconomy and private sector participationin power development. Fiscalincentives available for ‘Small Hydro’sector are given below.*Managing Director, Indian RenewableEnergy Development Agency Limited, New Delhi.26 SHP News, Winter, <strong>2002</strong>

SHP Development and Programme WorldwideFISCAL INCENTIVE FOR SMALLHYDRO SCHEMESSchemes involving capital uptoRs 500 Million need no EnvironmentalClearance from Ministry of Environment& Forests (MoEF)Five years Income Tax holidayTable 1. STATE WISE DETAILS OF IDENTIFIED SMALL HYDELSITES UP TO 25 MW CAPACITY IN INDIAS.No. Name of the State Identified Number Total Capacityof Sitesin MW1. Haryana 22 30.052. Himachal Pradesh 323 1624.783. Jammu and Kashmir 201 1207.274. Punjab 78 65.265. Rajasthan 49 27.266. Uttar Pradesh & Uttaranchal 445 1472.937. Gujarat 290 156.838. Madhya Pradesh & Chhatisgarh 125 410.139. Maharashtra 234 599.4710. Andhra Pradesh 286 254.6311. Karnataka 230 652.6112. Kerala 198 466.8513. Tamil Nadu 147 338.9214. Bihar & Jharkhand 171 367.9715. Orissa 161 156.7616. Sikkim 68 202.7517. West Bengal 145 182.6218. Arunachal Pradesh 492 1059.0319. Assam 46 118.0020. Manipur 96 105.6321. Meghalaya 98 181.5022. Mizoram 88 190.3223. Nagaland 86 181.3924. Tripura 8 9.8525. Andaman & Nicobar Islands 6 6.4026. Goa 3 2.60Tatal 4096 10071.81Sources: MNES Annual Report, 2000-01Table 2INSTALLED CAPACITY (MW) OF SMALL HYDRO IN INDIAProject Status Total No. of Projects Total Capacity in MWCommissioning 387 1341.05Under Implementation 170 498.28Total 557 1,839.33Sources: MNES Annual Report, 2000-01on grid interactive power generationprojectsTerm loans through IREDA forschemes upto 25 MWCustoms duty exemption forElectro-mechanical EquipmentExcise duty exemption for ElectromechanicalEquipmentADDITIONAL INCENTIVES OF-FERED BY MNESPromotional Incentive Scheme tocarry out Detailed Survey & Investigation(DSI) and preparation of DetailedProject Report (DPR)Interest Subsidy scheme for settingup of commercial small hydropower projects especially in the privatesectorCapital subsidy scheme for settingup of small hydro power projects inthe State sectorScheme for Renovation,Modernisation & capacity, upratingof small hydro power projectsPromotional incentive scheme fordevelopment and upgradation of watermillsIn addition to the above fiscalincentives, MNES has issued guidelinesfor off-take of power fromrenewables on concessional terms bythe State Electricity Boards in respectof power wheeling, banking and buyback.Following the model guidelines,several states of India have announcedtheir Private Sector Policy.PRIVATE SECTORPARTICIPATI ONhe States where small hydroT potential is available havecome out with attractive policies forprivate sector participation, in linewith MNES guidelines. The pioneeringefforts of the Karnataka StateGovernment in establishing a SingleWindow Agency for clearance of SHPprojects to private sector and theKarnataka Power Corporation (KPCL)as the nodal agency has sparked thegrowth of the sector and has becomean example for other States to follow.Some of the success stories of privatesector projects in the new era inthe State are 18 MW Shivapur projectof Bhoruka Power Corporation, Ban-SHP News, Winter, <strong>2002</strong> 27

galore and 1 MW Gokak Falls Schemeof Gokak Mills, Belgaum and 3.9 MWShahpur Branch Canal project ofBhoruka Power Corporation, Bangaloreand 2.8 MW Dhupdal HydroScheme of Gokak Mills, Belgaum. Theneighbouring States like Kerala andAndhra Pradesh followed the exampleand many SHP sites were allottedto private sector companiesmainly to meet their captive requirements.The first private sector projectin Kerala namely’ Maniyar 12 MWSHP, was completed in a record timeof two years. The northern States ofUttar Pradesh and Himachal Pradesh,which have tremendous potential ofhilly hydel schemes also announcedtheir policies and their projects areunder allotment for captive as well aspower sale options.WORLD BANK INITIATIVETHROUGH IREDApre-investment study was carriedout under the auspices ofAthe Energy Sector Management AssistanceProgramme (ESMAP) jointlysupported by UNDP and World Bankin the years 1998-1990 in associationwith the Indian Govt. agencies. Theprincipal objective of this study wasto apply techno-economic criteria toimprove the design and economic viabilityof irrigation based mini-hydroschemes in India, and to identify andprepare a medium term investmentprogramme to develop a series of irrigationbased hydro schemes in India.This study covered more thanfifty prospective small hydro sites infive states. Detailed tech no-economicanalysis and cost-effective designswere made for some of these sites.Consequent to the ESMAPstudy, World Bank (WB) offered a lineof credit worth US $70 million to beutilized during 1993-1997 with a targetcapacity sanction of 100MW.SHP Development and Programme WorldwideThe credit line has moved fastenough and IREDA could sanction47 projects with an aggregate capacityof 145.16 MW, exceeding the targetone year ahead of schedule. Theenthusiasm shown by the privatepromoters as well as their understandingthat the small hydro is the mostattractive long term option not onlyfor their captive needs but also as abusiness opportunity by way of sellingpower at commercial rates havegiven a fillip to the sector and there isgoing to be a steady growth in thesmall hydro sector. Out of the WorldBank package, a capacity of 84.40MW has been commissioned byMarch 2001. Satisfied by the progressmade in implementation of the firstline of credit, the World Bank has extendan additional line of credit (secondline of credit) amounting toUS$110 million for development of 200MW Small Hydro Power Capacity.SECOND LINE OF CREDITFROM WORLD BANKatisfied by the progress madeS in implementation of the firstline of credit, the World Bank has extendedan additional line of creditamounting to US$110 million for developmentof 200 MW Small HydroPower Capacity.water mills for electricity generation.A revolving fund has been created atIREDA to finance commercialschemes under the project.PORTABLE MICRO HYDELPROGRAMME OF MNESnother innovative concept thatAhas been developed and is underimplementation, is the installationof light weight Portable Micro HydelSets in the hilly areas of the country,particularly the Himalayan region.The main objective of this novelscheme is to provide power to nongridconnected remote areas by using‘stand alone systems’ rangingfrom 5 to 15 kW, which would be easilyinstalled and maintained by thelocal communities. MNES in the firstinstance has supplied 50 such setsfree of cost and IREDA is the implementingagency for the same. Thebeneficiary will have to carry out allperipheral works essential for completionof the projects, including civilworks, local distribution network etc.In the subsequent phases, based onthe success of implementation anddemonstration of the benefits of thefirst phase, the programme may befurther expanded with phased reductionof subsidy. As of now, 35 projectshave been commissioned and are generatingpower.UNDP-GEF INITIATIVE ON HI-MALAYAN SMALL HYDRO IREDA’S LENDING ACTIVITIESgainst the background of depletingforest resources of I neering, participant friendlyREDA’s Mission is to be a pio-AHimalayas, the UNDP-GEF India Hilly and competitive institution for financingHydel Project was initiated in the yearand promoting self-sustaining in-1994 as the first Indian Project from vestment in energy generation fromGEF portfolio in order to develop a renewable sources and energy efficiencynational strategy and master plan forfor sustainable development.optimum utilization of Small Hydro resourcesIREDA’s main objectives are:of Himalayan and sub-Hima-* To promote renewable sourceslayan regions with an outlay of US of energy$15 million. The scheme also envisages* To provide financial support toimplementation of 20 demonstra-manufacturers and userstion schemes, upgradation of 100 * Act as a financial intermediary28 SHP News, Winter, <strong>2002</strong>

SHP Development and Programme Worldwide* Assist in rapid commercialization* To promote energy efficiency &conservation, and* To provide consultancyIREDA’s mandate covers a widespectrum of financing activities includingthose that are connected toenergy conservation and energy efficiency.At present, IREDA’s lendingis mainly in the following areas:* Hydro Energy* Wind Energy* Bio- Energy* Solar Energy* Developmental Activities New Initiatives* New & Emerging Technologies* Energy Efficiency & ConservationThe maximum extent of assistanceextended by IREDA is determinedby IREDA’s exposure limitwhich is set according to the client’scredit worthiness and the security/guarantees offered for the term loan.To qualify for IREDA financingthe projects are required to satisfythe following criteria:* The project must be technicallyfeasible;* It must represent the least costoption;* The borrowers capability to undertakethe project in terms of theirperformance track record, soundnessof financial operations and adequacyof organizational and technical capabilitiesmust be satisfactory;* The project must be financiallyviable with an internal rate of returnof not less than 12%;* The project must be economicallyjustified with satisfactory socialcost benefits in terms of generationand/or conservation of energy, employmentgeneration and contributeto balanced economic growth in theregion; and* All statutory clearances fromTable 3 HIGHLIGHTS OF FINANCING NORMSDebt instrumentsQuantum of AssistanceRate of InterestMoratoriumRepayment PeriodState & Central Government agenciesneed to be furnished.IREDA’S FINANCING SCHEMESFOR SHP SECTORREDA started financing smallI Hydro Projects from middle ofVllth Five Year Plan [1985-1990] andthe projects sanctioned were for Governmentsector along with subsidyfrom MNES. In line with Govt. of Indiapolicy of privatisation of powersector, from 1992-1993 IREDA startedfinancing Private Sector small hydroprojects from its own resources anda modest beginning was madethrough financing one private sectorproject of 12MW and another renovationproject of 1 MW. By the endof the financial year 2000-2001 IREDAhas financed a total of 91 Small Hydroprojects with loan assistanceamounting to Rs. 6887.68 million forinstallation of aggregate capacity ofnearly 265.03 MW, which include 81private sector projects.Project financingEquipment financingLoans for ManufacturingMarket Development (including Export Promotion)Energy CentresFinancial IntermediariesBusiness Development AssociatesRenewable Energy Umbrella FinancingNon -Conventional Energy TechnologyCommercialization Fund SchemeUpto 75% of the project costUpto 80% of the equipment cost3.0 %- 14.50 % per annum(Varies from sector to sector)Upto 3 years(Varies from sector to sector)Upto 10 years(Varies from sector to sector)PROMOTIONAL ACTIVITIESpart from the role of a financialA institution, IREDA also conductsvarious promotional initiativesthrough the business meets, seminarsand workshops etc. IREDA also doesentrepreneurial development throughit’s various Entrepreneurship DevelopmentProgrammes (EDPs), a numberof them exclusively devoted towomen. It also encourages more andmore women participation. IREDAalso takes critical care to ensure environmentfriendliness and bettereco-balance. The agency also encourages,rural development, selfemployment and self reliance throughdecentralized NRSE programmes.INTERNATIONAL ASSISTANCEREDA’s track records ofI achievements have also attractedglobal attention. Renownedmultilateral and bilateral agencieshave come forward to join this globalmovement for sustainable development.SHP News, Winter, <strong>2002</strong> 29

SHP Development and Programme WorldwideCORPORATE PLAN AND VISIONREDA’s activities form an integralpart of the National. FiveIyear plans and annual plans are particularlydovetailed to the five yearplans of the MNES. During the 9 thplan period which coincides with theCorporate Plan, IREDA’s proposalenvisages ambitious targets for sanction& disbursement of loan for settingup renewable energy projects.The thrust during this period is to harnessrenewable energy sources forproductive purposes. The highlightsof the plan are as under:IREDA 9 THPLAN TARGETS (1997-<strong>2002</strong>)Capacity Addition* Installation of power generationcapacity of 1150MW* Setting up projects to generate energyequivalent to 0.392 Million MTof coal through renewable resources.Sanction of term loan* Rs. 3779 CroresDisbursement of lcon* Rs. 2703 CroresIREDA VISION TARGETS (1997 -2010 )Capacity addition* Installation of power generationcapacity of 2993 MW* Setting up projects to generate energyequivalent to 0.976 Million MTof Coal through renewable resourcesSanction of term loan* Rs. 16100 CroresDisbursement of loan* Rs. 13880 CroresEMERGING SCENARIO &STRATEGIES FOR FUTURErom the foregoing discussions,F it is apparent that in India, it isan opportune time that Small Hydroshould get a strategic thrust, as environmentdriven awareness has rediscovered‘Small Hydro’ as a principalrenewable energy source for sustainabledevelopment.For a multi-dimensional strategicthrust, identification of weak areasand threat perceptions need tobe visualised carefully and appropriatesteps need to be taken. In thisconnection, following need to be addressed:* Non- availability of hydrologicaldata and pre-investment study reportsof newly identified sites.* Single window clearance facility notfunctional in all the States.* Non- uniformity of Wheeling &Banking facility.* Non- uniformity of buy-back andthird party sale.* Water royalty charged from PrivateEntrepreneurs.* Economics depends on GovernmentPolicies which need to be consistent.A country-wide scientific resourceassessment needs to be donemaking full use of metered data of atleast2 to 3 years as well as corroborativedata from the existing irrigationand power projects. On the policyfront, uniformity of facilities fromState Electricity Boards may be a desirablestep besides withdrawing waterroyalty from Small Hydro Projects.State clearance mechanisms need tobe further streamlined and fine-tunedto make single window clearance reallyeffective. The various fiscal andfinancial incentives extended by theGovernment should continue in theforthcoming plans to ensure economicviability and attractive returnsfrom the projects.Target segment based approachwould be desirable in a diverse countrylike India with complex, socio economicobjectives. Following segmentsappear imminent for evolvingstrategies to achieve a balancedgrowth of Small Hydro:1. Hilly Hydels2. Existing irrigation canal falls3. Run-of-the-river schemes4. Socially relevant micro hydelschemes5. Hybrid systems with other renewablesources as well as conventionalsources of energy6. Stand alone systems for off-girdapplications7. R&M of existing Small HydroSchemes8. Mini Hydel Schemes in return canalsof Power Plant cooling watersystem.In the overall scenario of SmallHydro, few trade-offs are necessaryto be carefully perceived for a rightkind of decision on strategic developmentof Small Hydro. These ore:a) Detailed Vs. Adequate Investigation,b) Conventional Vs. Innovative designs,c) Standardisation Vs. Optimisation,d) Efficiency Vs. Effectiveness,e) Commercialisation desirability Vs.Socio-economic Objectives.CONCLUDING REMARKSith the dawn of liberalisationWpolicy in India, power sectoris attracting private participation in abig way. The World Bank line of creditwith its emphasis on private sectorparticipation is boosting the currenttrend in SHP development and is expectedto contribute to the rural andsemi-urban energy scenario of thecountry in a significant way. A technicallysound programme like thisoperated in an entrepreneur friendlyfiscal environment is likely to spin offan entirely new techno commercialscenario paving the way for attractivebusiness opportunities in SmallHydro.30 SHP News, Winter, <strong>2002</strong>

12345678901234567890123456789012123456789012345678901234567890121234123456789012345678901234567890121234567890123456789012345678901212341234567890123456789012345678901212345678901234567890123456789012123412345678901234567890123456789012123456789012345678901234567890121234123456789012345678901234567890121234567890123456789012345678901212341234567890123456789012345678901212345678901234567890123456789012123412345678901234567890123456789012123456789012345678901234567890121234123456789012345678901234567890121234567890123456789012345678901212341234567890123456789012345678901212345678901234567890123456789012123412345678901234567890123456789012123456789012345678901234567890121234U.K. regulators exempthydros from climate levyThe United Kingdom’s Office forGas and Electricity Markets (Ofgem)has accredited 123 small hydro generatorsas qualifying renewablessources for exemption under the ClimateChange Levy. Those plants areamong 396 generators, totaling1,232MW, accredited for exemptionunder the levy, according to the officethat regulates gas and electricityindustries.Previously, industrial and commercialelectricity customers, alsocalled non-domestic customers, paida Climate Change Levy of 0.43 penceper kWh (0.61cent U.S.) to suppliers,who sent the payment to thegovernment’s tax office. Residentialcustomers, also called domestic customers,are not affected by the ClimateChange Levy and therefore arenot entitled to the exemption.Under the exemption program,accredited generators have been issuedLevy Exemption Certificates fortheir monthly production, retroactiveto April 2001.Electricity suppliers whobuy that output for resale to industrialand commercial customers do notpay the Climate Change Levy on thatelectricity and may pass the savingsalong to customers who have signedrenewables contracts.The hydro plants, which rangefrom 80 kW to 10MW and total about158.2 MW, represent 31 percnet of thegenerating stations exempted from thelevy. Other accredited generating stationsare powered by landfill gas,wind, sewage gas, and waste.Ofgem posted a list of exemptedgenerators on the internet: www.ofgem. gov. uk/industry/ccl. htm.That list is not final, as generatorsstill are being encouraged to applyfor the exemption.Croesor power station restored12345678901234567890123456789012123456789012345678901234567890121234The historic 500-kW CroesorPower Station in Snowdonia NationalPark is one of five hydroelectricprojects in the North Wales area ofthe United Kingdom operated byInnogy.Pioneering engineer MosesKellow built the station nearly 100years ago to supply power to slatequarries. The quarries closed in the1930s. The plant fell into disrepair inthe 1950s.National Power, now known asInnogy, redeveloped the power plantat Blaenwm, Gwynedd, returning it toservice in November 1999 at a cost ofmore than 1 million (US$ 1.6 million).Dulas Ltd. Worked on theNews in SHPproject, on a turnkey design-to-commissioningbasis. Extreme terrain conditionsrequired special equipment,including a “walking excavator” tetheredto rock face. A helicopter transportedpipes and intake materials.The project features a 1,000-rpmGilkes single-jet Pelton turbine thatis operated under 260 meters head.The project contains a runnermounted to the extended alternatorshaft, a hydraulically actuated waferbutterfly valve that isolates the machine,and Dulas’ “Minscon” solidstate controller. All equipment wasmanufactured in the United Kingdom,with the exception of the alternator,which was manufactured in Spain.The plant is operated remotely via aSCADA system.12345678901234567890123456789012123456789012345678901234567890121234India’s NHPC develops twosmall hydrosIndia’s National HydroelectricPower Corp. (NHPC) is in the processof developing two small hydroplants, the 4-MW Sippi projecton Sippi River and 6-MWKambang project on Siru River,both in Arunachal Pradesh State.Sippi is to feature two 2-MWturbine-generator units andKambang is to contain three 2-MWunits. NHPC was recruiting contractorsto design, manufacture,supply, erect, test, and commissiongenerating plant and hydromechanicalworks. Contractors alsowill handle various civil works.○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○India utility commissionsAndaman Island projectIndia’s National HydroelectricPower Corp. reports it has commissionedthe 5.25-MW Kalponghydroelectric project on AndamanIsland in the Bay of Bengal. Thefirst 1.75 MW unit was connectedto the local grid on July 1,2001, 16months ahead of schedule.Developed on the left andright forks of Kalpong River for theAndaman and Nicobar IslandsAdministration, the Kalpongproject includes a 34-meter-tall,138-meter-long concrete dam, a 27-mter-tall, 146-meter-long rockfilldam, a 300-meter-long canal, a 133-meter-long tunnel, three penstocks,a powerhouse containing three1.75-MW units, and a switchyard.The project is to generate14.83 million kWh annually, replacingsome diesel generation forwhich fuel must transported.Source:HRWSHP News, Winter, <strong>2002</strong> 31

123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567123456789012345678901234567890121234567New bank to finance projects in NepalA new bank formed by a groupof financial institutions and other corporategroups is to finance hydro andother “clean energy and infrastructure”ventures in Nepal. The CleanEnergy and Infrastructure DevelopmentBank(CEIDB) will lend moneyto entrepreneurs to develop hydropower;other generation projects, includingsolar, wind, biomass, biogas,and municipal solid waste; and cleanenergy-driven infrastructure projectssuch as electric-powered trolleybuses, cable cars, and trains.Winrock International in Nepalhas identified 28 small scale hydropowerprojects, exceeding 75MW intotal installed capacity, for CEIDB investment.Opportunities also havebeen identified in other renewableenergy projects to meet energy needsof hotels, residences, and small industriesin rural areas.Winrock, which is serving astechnical secretariat to CEIDB, providedincubation services to the newbank. Those services included financing/commissioninga feasibilitystudy; structuring the bank; garneringsupport from prospective promoters(banks, finance companies, insurancecompanies, other contractsaving institutions, and other corpo-The government of Ugandaplans to assess alternative energyresources, including small hydropower,and how to meet demand ofenergy deficient areas of Uganda.The Ministry of Energy andMineral Development wants to establisha technically, economically, andsocially feasible program of least costalternative energy resources to serverural areas and small towns. The entirestudy is to require 13 months.The first phase of the study isto formulate an alternative energy de-News in SHPrate groups). The company also arrangedfor preparation of charterdocuments, contacted foreign investorsto measure their interest in investingin the the bank(10 percent ofthe total equity is earmarked for investmentby foreign investors), andarranged to tap the World Bank’s GlobalEnvironment Facility fund to supportincorporation and financing ofthe bank.Initially, the bank will have apaid-up capital equivalent to aboutUS$6.7 million(Rs500 million). Sixtypercent of the amount(about US$4million) has been committed for subscriptionby promoters includingprovident funds, insurance companies,banks and finance companies,and other corporate groups. By thesixth year, the bank’s borrowings anddeposits are projected to reach US$36million and US$60 million, with a lendingand investment portfolio expectedto exceed US$100 million.For information about CEIDB,contact Ratna Sansar Shrestha, FCA,Senior Adviser, Clean Energy Group,Nepal, Winrock International, P.O.Box1312, Kathmandu Nepal;(977)1-472839; Fax: (977)1-476109;E-mail:rsansar@winrock.org.np.Uganda plans assessment of energy resourcesvelopment program, with assessmentof resources including mini-and micro-hydro,biomass, solar, wind, andgeothermal power. Also included isforecasting of energy demand, preparationof pre-feasibility studies, andformulation of a development strategy.Phase 2 includes preparation offeasibility studies of priority projectsfor five of the most energy deficientareas. Phase 3 includes detailed designof selected projects.123456789012345678901234567890121234567India state moves to build123456789012345678901234567890121234567six small 123456789012345678901234567890121234567hydros123456789012345678901234567890121234567India’s Bihar State HydroelectricPower Corp.Ltd. is conducting a smallhydro program that will include constructionof six 1-MW hydroelectricprojects on Sone Canal in Bihar State.BSHPC is raising funds to develop atotal of 22 such projects, includingfour tendered previously.The group of six projects, eachfeaturing two 500-kW turbine generatorunits, are to be located at Dehraand Sipatia in Aurangabad District,Belsar in Jehanabad District, andSebari, Shirkhinda, and Paharma, allin Rohtas District.123456789012345678901234567890121234567123456789012345678901234567890121234567China’s 54 MW Fushihydro in full operation123456789012345678901234567890121234567The third and final unit of the 54MW Fushi hydropower plant begancommercial operation June 28 on theRongjiang River, 153 kilometers fromLiuzhou in China’s Guangxi ZhuangAutonomous Region.Meiya Power Co. Ltd., whichowns 70 percent of the project, saidthe first and second 18-MW unitsbegan operation in April and October2000. MPC’s joint venture partneris Liuzhou Rongjiang HydropowerDevelopment Co. Ltd. Theplant is connected to the Guanxi regionalgrid and, in addition to supplyingpower, will improve area irrigationand navigation.Cambodia rural power plan123456789012345678901234567890121234567to include small 123456789012345678901234567890121234567 hydroThe government of Cambodiaexpects to recruit contractors andconsulants to carry out a rural electrificationprogram that includes developmentof mini-and micro-hydropowerplants.The government said it intendsto seek a US 30 million credit fromthe World Bank’s International DevelopmentAssociation for theproject. It previously received a loanfrom the Asian Development Bank forthe program.Source: HRW32 SHP News, Winter, <strong>2002</strong>