Regulatory and policy options to encourage development of ...

MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.51Income/yearFollowing the same approach as above, the income is:10,000 (kW) * 6000 (hrs) * FIT (€/kWh)Cost/yearFuel cost:10 €/GJElectricity production: 60,000,000 kWh = 540,000 GJ(1 kWh = 3.6 MJ, efficiency of energy conversion assumed at 40 per cent) Fuel cost/year: 5,400,000 € Operation and maintenance cost/year: 10,000 * 120 = 1,200,000 €Investment cost 10,000 (kW) * 800 (€/kW) = 8,000,000 €Calculation of the feed-in tariff∑ [(60,000,000 * FIT – 1,200,000 – 5,400,000) / (1.065) t ] – 8,000,000 = 0FIT = 0.127 €/kWh = 127 €/MWhSmall-scale hydro 12Capacity (kW e) 100Full load hours/year 6000Investment cost (€/kW e) 2500Operation and maintenance 3cost (per cent of investment)Interest rate r (per cent) 6.5Duration of support t (years) 10Feed-in tariff (€/kWh) ?Income/yearFollowing the same approach as before, the income is:100 (kW) * 6000 (hrs) * FIT (€/kWh)Cost/yearOperation and maintenance cost /year: 100 (kW) * 2500 (€/kW) * 0.03 = 7500€Investment cost 100 (kW) * 2500 (€/kW) = 250,000 €12State-of-the-art of small hydropower – European Small Hydro Association – www.esha.be