The Business of Small Hydropower Celeste Fay
The Business of Small Hydropower Celeste Fay Project Engineer Alden Research Laboratory
The Business of Small Hydropower
FRENCH RIVER LAND CO.
Intro 100 kW – 5,000 kW
Revenue f(generation, energy value, expenses)
Generation
Power f( flow, head, system efficiency)
Generation Assabet River 4000
FLow Rate (cfs)
3500 3000 2500 2000 1500 1000 500 0
Jan 1941 - September 2012
Assabet River 100
Flow Rate (cfs)
80 60 40 20 0
September 2012
Energy Value - Power Market Rates Day
Hour
03/16/08 03/16/08 03/16/08 03/16/08 03/16/08 03/16/08 03/16/08 03/17/08 03/17/08 03/17/08 03/17/08 03/17/08 03/17/08 03/17/08
18 19 20 21 22 23 24 1 2 3 4 5 6 7
Energy Generated (MWh) 0.070 0.071 0.071 0.071 0.071 0.070 0.070 0.071 0.070 0.070 0.070 0.070 0.070 0.070
Contract Value ($/MWh) 0.570 0.490 0.560 0.560 0.450 0.240 0.000 0.030 0.130 0.230 0.210 0.230 0.170 0.890
• ~4 Cent : 10 year • ~5 Cent : 20 year • 1% escalator
Energy Value - RECs …environmental attributes of the power produced from renewable energy projects
Renewable Portfolio Standard Policies.. Modified from www.dsireusa.org / October 2012.
• • • • •
Flows Water Quality Fish Passage & Protection Watershed Protection Threatened and Endangered Species • Cultural Resources • Recreation • Dam Removal Recommendation
Expenses - Typical Annual • • • • • • • •
Trashrack Cleaning Ice Removal System Lubrication Turbine/Generator Inspection Dam Operation Flashboard Replacement Electrical Inspection Etc..
Expenses - Unexpected
Expenses - Unexpected
Initial Investment Costs Simple Payback =Capital Cost / Revenue
• Electro-mechanical equipment • Permitting • Engineering • Construction • Interconnection • Environmental mitigation • Etc…
Don’t Forget… • Insurance – 20K/yr for 350K….but ±30% down 2 Million Liability Fire Equipment • Flood Insurance - $$$ • Interconnection Insurance >1MW - $$$ • Appraisal - $15-30 K • LIHI Certification
Why would anyone do this… the benefits Potential to increase the value of your energy…
Why cont… Power: 500 kW Power Factor: 0.5 Ave. Annual Energy: 2.2 million kWh Value of Energy: $0.05/kWh RECs: $0.03/kWh Typical O&M: 20 K Revenue: ± 160 K
Courtesy Business Week
Contact Information Celeste N. Fay French River Land Co. www.frenchriverland.com [email protected]
The Business of Small Hydropower
FRENCH RIVER LAND CO.
Intro 100 kW – 5,000 kW
Revenue f(generation, energy value, expenses)
Generation
Power f( flow, head, system efficiency)
Generation Assabet River 4000
FLow Rate (cfs)
3500 3000 2500 2000 1500 1000 500 0
Jan 1941 - September 2012
Assabet River 100
Flow Rate (cfs)
80 60 40 20 0
September 2012
Energy Value - Power Market Rates Day
Hour
03/16/08 03/16/08 03/16/08 03/16/08 03/16/08 03/16/08 03/16/08 03/17/08 03/17/08 03/17/08 03/17/08 03/17/08 03/17/08 03/17/08
18 19 20 21 22 23 24 1 2 3 4 5 6 7
Energy Generated (MWh) 0.070 0.071 0.071 0.071 0.071 0.070 0.070 0.071 0.070 0.070 0.070 0.070 0.070 0.070
Contract Value ($/MWh) 0.570 0.490 0.560 0.560 0.450 0.240 0.000 0.030 0.130 0.230 0.210 0.230 0.170 0.890
• ~4 Cent : 10 year • ~5 Cent : 20 year • 1% escalator
Energy Value - RECs …environmental attributes of the power produced from renewable energy projects
Renewable Portfolio Standard Policies.. Modified from www.dsireusa.org / October 2012.
• • • • •
Flows Water Quality Fish Passage & Protection Watershed Protection Threatened and Endangered Species • Cultural Resources • Recreation • Dam Removal Recommendation
Expenses - Typical Annual • • • • • • • •
Trashrack Cleaning Ice Removal System Lubrication Turbine/Generator Inspection Dam Operation Flashboard Replacement Electrical Inspection Etc..
Expenses - Unexpected
Expenses - Unexpected
Initial Investment Costs Simple Payback =Capital Cost / Revenue
• Electro-mechanical equipment • Permitting • Engineering • Construction • Interconnection • Environmental mitigation • Etc…
Don’t Forget… • Insurance – 20K/yr for 350K….but ±30% down 2 Million Liability Fire Equipment • Flood Insurance - $$$ • Interconnection Insurance >1MW - $$$ • Appraisal - $15-30 K • LIHI Certification
Why would anyone do this… the benefits Potential to increase the value of your energy…
Why cont… Power: 500 kW Power Factor: 0.5 Ave. Annual Energy: 2.2 million kWh Value of Energy: $0.05/kWh RECs: $0.03/kWh Typical O&M: 20 K Revenue: ± 160 K
Courtesy Business Week
Contact Information Celeste N. Fay French River Land Co. www.frenchriverland.com [email protected]
