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SHP in China Framework Design of Incentive Policies for Small Hydropower Development in China

Hangzhou Regional Centre (Asia-Pacific) for Small Hydro Power (HRC), Hangzhou, China

olicy is an important adminis- and natural gas. In particular, it has with installed capacity of 26.26 mil- P trative measure for promoting better accessibility and affinity to lion kW and annual generation of small hydropower (SHP) develop- local economy in west China. 90,000 odd Gwh, occupying 30% of ment in China. At present, the critical 3. Flexible development. SHP could total consumption in rural electricity topics to be studied and solved ur- be separately developed, could for- market in the country. gently are: to find out questions and mulate local grid and supply electric- Remarkable economic and social reasons that constrain SHP develop- ity dispersedly. The capacity devel- effect has been achieved through de- ment upon investigation and analy- oped could be several, several tens, velopment of SHP. Currently, SHP has sis of policy environment of macro- several hundreds up to several tens acted as vital support for socio-eco- economy and techno-economic indi- of thousand kW according to de- nomic development in hilly areas in ces of SHP development, and to ham- mand. It is capable of providing power central and west China. It drives the mer out the policy framework and op- to household, village, township urbanization and industrialization eration mechanism complying with (town) and county (city) and has very through electrification and also pro- the requirement of market economy, strong adaptability and capability of motes the regulation of economic enabling the sustainable development radiation. In addition SHP is of small structure. Following the prosperity of SHP. scale, needs comparative less capital and continuous development of lo- I Technical-economical feasibility investment, with mature technology, cal economy, steps of poverty alle- analysis for SHP short construction period, fast effec- viation were speeded up, rural energy In China, SHP is defined as sta- tive, easy maintenance and low op- consumption solved, ethnic solidar- tions with installed capacity up to eration cost. It is more technically and ity strengthened and stability of bor- 50MW. SHP technology is mature economically feasible to construct der areas promoted as well. and proven. Its major features are as SHP than to develop large and me- Especially, in providing electric- follows: dium hydro and thermal power in eco- ity to basic public service sector for 1. Rich resources. The exploitable nomically poor regions. It should be people in remote area un-accessible SHP resources in China is 87 mil- pointed out that it is most appropri- to electricity, SHP possesses evident lion kW (as per the general inves- ate for local government to organize advantages and has been consis- tigation of hydraulic resources in the SHP development while the cen- tently playing the un-replaceable role. 1980s) which occupies 23% of to- tral government is focusing capital for The construction of rural 653 hydro- tal hydropower resources in the large power generation projects. based primarily electrified counties whole country and stands top in SHP has attained rapid develop- during “7th, 8th and 9th Five Year Plan” the world. ment in China due to its significant not only solved the electricity sup- 2. Widely spread. The exploitable function in solving rural energy supply to 120 million people not acces- SHP resources are widely spread ply, improving ecological environ- sible to electricity but also widely and over 1,573 counties in the nation. ment, alleviating poverty and promot- greatly increased the rural electricity There are 58.28 million kW in west ing rural economic development. consumption level in the respective China, occupying 67% of the Since 60-70s of last century, the sup- areas. At present, there are still 30 country’s total exploitable one; ply area of rural hydropower has more million people not accessible to 28.72 million kW in central and east gradually expanded to cover nearly electricity, more than half of them are China, 33% of the same. The allo- 1/2 of the whole nation’s territory, distributed in the regions with rich cation of SHP resources is more with 1/4 of the whole nation’s popu- SHP resources. The geological posi- widely dispersed than other energy lation. Number of SHP stations com- tion of these areas is extremely remote, resources such as coal, petroleum pleted is about 40 more thousands with dispersed low load. It is not prac- 2 SHP NEWS, Summer, 2003 SHP in China tical to provide electricity through benefit of its own thus lacks the mecha- lation function of tax and subsidies extension of national grid to these nism of sustainable development. were focused while the disposition areas. Therefore, SHP will continu- For promoting SHP develop- function of capital by the market ele- ously play the important role in the ment, a series of supporting policies ment-price was not fully utilized. The final fortifying storm for resolution of were stipulated by central and local SHP as a public welfare sector, has non-electrified population. government during various develop- actually been drifting with the tide in The ecological effect of SHP is ment period of SHP. According to the tough market competition due to also excellent. Currently the total an- their nature, these could be classified abolition of specified loan, limitation nual generation from SHP in China is into administrative compulsory type of financial subsidies and non-execu- equivalent to 30 million tons of stan- (AC), economic incentive (EI) type tion of 6% value-added tax policy in dard coal. Its ecological effect is and market creation (MC) type. Rel- most regions. SHP will exert even more equivalent to preventing 70 million evant stipulation of SHP in the Law impact in the “separation of plant and tons of emission of greenhouse gas of Electric Power belongs to AC type grid, competitive price for sales to the as CO2 and large amount of flue dust policies. The strategy of “self-con- grid” policy from the reformation of and polluted water. Development of struction, self-management and self- power institutional system, if neces- SHP could create fundamental criteria consumption” for rural SHP formu- sary protective measures were not for replacing fire wood by electricity lated by the state belongs to MC type adopted. In a word, the significant rea- in providing energy for living and for policy. The EI type polices include: sons for the slow development and agricultural processing. Replacing fire- (1) policy of profit of SHP reserved difficult walking of SHP were its di- wood by electricity reduces defores- for further expansion of SHP; (2) per- vorce from policy support of the gov- tation in SHP supply area. Evident re- mission of utilizing nation’s poverty ernment. At present, the SHP devel- sults of hill blocking and forest rais- release capitals for construction of opment urgently needs to gain a foot- ing and returning farmland to forest rural SHP; (3) policy of 6% value- hold on new incentive polices under was attained, as the percentage of for- added tax for SHP; (4) policy of speci- market economy condition. est coverage increased year by year. fied loan for SHP development (dis- III Problems existed in the market- Water resources were reserved and missed). ing operation of SHP soil erosion prevented which caused These prevailing policies takes For SHP development, the inter- the fast recovery and improvement of policy of economic incentive based nal unfavorable factors of itself are: ecological environment. on planning economy as major one, small scale production, consistent in- II Analysis of present status of SHP but rarely related to basic element of crease of capital investment, contra- policy environment market economy, i.e. price and rela- diction of seasonal variation, low level In comparison with exploitable tion of demand and supply. The func- of technical equipment and operation SHP resources in China, the percent- tion of market mechanism has not and management, etc; in the mean- age of exploitation is rather row, only been reflected fundamentally. The AC time, there are also external impact around 30%. Reasons for this slow type policy also did not make any such as difficulties of selling electric- development are resulted from weak- stipulation for qualification and quan- ity, unsmoothness of price mecha- ness of SHP itself and external eco- tification of SHP. Especially, it lacks nism, slow development of market, nomic policy environment, etc. It concrete subsidiary policy and op- constraints of its public welfare char- should be pointed out that the macro erational function relating to the right acter, etc. Within all contradictions, economy policy environment for en- of integration into the grid and vol- the most critical ones are small scale ergy is not favorable to SHP devel- ume to electricity. The MC type generation, difficulties in selling, sea- opment. SHP has been developing policy, though came up rather earlier sonal variation, price mechanism and through a rough and bumpy road and had touched the issue of prop- constraints of its public welfare char- onto the present mainly due to initia- erty right, is much imperfect and could acters. These have directly affected tives of developing local economy hardly be executed under various the economic effect and competitive from local government. This signifies complicated factors of the nation’s capability of SHP and resulted in the its good external economics but could reformation for economic institutional low capital return rate, difficulty of hardly ensure its internal economics and system. In the EI type policy, only regu- financing and lack of capability for SHP NEWS, Summer, 2003 3 SHP in China sound cycle rolling development. ence, enterprise status and under- nal and external economic characters, 1. Small scale generation standing of future tendency of na- but foreign successful experience The common problems facing tional policies of decision makers should also be absorbed to introduce commercial operation of renewable themselves. In addition, the structure the market mechanism into the sys- energy are: relative narrow market for of SHP price does not include ratio- tem of incentive policy for SHP. In renewable energy and comparative nal reward of its external economic addition, as SHP possesses the fea- high capital investment caused by factors. The current price level of SHP ture of clean energy and ecological small scale production, and in turn, not only deviates from the law of environment protection, environmen- comparative high energy production value but is also not able to reflect tal economy policy should be coor- cost derived from low volume energy the relation of demand and supply. dinated during stipulation of SHP production. SHP is of no exception. This is not favorable to dispose natu- policies. This is for ensuring the mer- Under present macro economic policy ral resources through market and se- gence of policy with relevant sectors environment for energy, SHP mostly verely affects the survival, consoli- for the purpose of enhancing entirety with installed capacity less than tens dation and development of SHP. effect of economic system. of MW would no doubt be in an infe- 5. Constraint of public welfare char- At present, the average specific rior position in competing with large acter construction cost for conventional conventional power plant with capac- Quite a lot of SHP projects were energy large thermal power plant is ity of several hundreds MW and constructed in conjunction with wa- 4000-5000 Yuan/kW; that for SHP, even several thousands MW. ter conservancy project, with compre- 6000-8000 Yuan/kW; and that for 2. Difficulty of selling out hensive function of flood protection, wind power generation 9000-12,000 Due to different affiliation of irrigation and water supply etc. in ad- Yuan/kW. The average specific en- SHP and national grid, the problem dition to power generation. Spilling ergy cost for conventional energy of integration of SHP into the grid water in flood season, as well as irri- large thermal power is 0.20-0.30 Yuan/ could not have been solved for long. gation and water supply would all kWh; that for SHP 0.30-0.40 Yuan/ It would either be uncapable of inte- affect the generation. SHP has to spill kWh and that for wind power 0.40- gration or with very low electricity water and empty the reservoir in ad- 0.50 Yuan/kWh. The economic feasi- price in connecting to the grid, thus vance for protecting the flood disas- bility of SHP is superior than that of decrease the profit of SHP and inter. It also usually raises water level wind power, while it lacks competi- crease the risk of investment. reverse with normal seasonal demand tive capability versus conventional 3. Contradiction of seasonal varia- for ensuring industrial, agricultural energy large thermal power. tion and city water supply, thus misses Typical investigation and analy- Most SHP stations are run-of the- the opportunity for generation; or sis for economic feasibility of SHP river type in China, which lack the ca- under long time low head operation shows that: generation volume is the pability of regulation. During raining resulting in decrease of turbine out- major constraint within all factors af- season, SHP would have large volume put and loss of economic benefit. fecting the benefit and development of spilling water due to surplus power These losses in cascade developed of SHP. Most of SHP benefit from in the grid; while in dry season, short- stations would be even greater. power generation and supply could age of electricity would occur in the IV Conceptual strategy for in- not reach the expected value in finan- grid. This is also one of important centive policies for SHP cial evaluation for the project design. causes for cost increase for SHP. The design of incentive policy The actual generation volume is the 4. Unsuitable of price mechanism for SHP is a complicated system en- major factor for determining the spe- Formulation of electricity price gineering. In the policy framework de- cific construction cost of electric en- for SHP lacks standardized policies sign, not only background of national ergy and production cost of SHP. The and regulations. Stipulation and regu- macro economic policy should be annual generation utilization hour of lation of electricity price bears con- taken into consideration for finding SHP in China is evidently on the lower siderable subjectivity and random- out the major factors that affect its side. Its actual generation volume is ness, and lacks scientism as decision development through comprehensive greatly lower than the design one and were usually made by work experi- analysis and evaluation of its inter- also lower than the effective volume 4 SHP NEWS, Summer, 2003 SHP in China after reduction from conversion cal- followed in building up the incentive accelerated. In the mean time, promo- culation with the grid. The reasons policy framework for SHP should be: tion should be made for the State for affecting generation utilization Holding the key line of actual gen- Council to promulgate the regulation hour are closely related to above- eration volume and other factors that relevant to acceleration of the devel- stated problems both from SHP itself affect the benefit of SHP and setting opment of rural SHP, and push for- and from external causes. In addition the starting point of incentive policy ward the stipulation of regulation to factors such as difficulty of elec- on the market basis, purposely utiliz- from local government. For instance, tricity selling out, contradiction being macro control and coordinating the Decision of Acceleration of tween rainy and seasons, and con- measures such as administrative Rural SHP Development issued by straint of public welfare character etc, command, economic incentives, cre- the Guangdong Provincial Govern- there are other factors also affecting ation of market etc, stressed on ad- ment in 1996 is a local regulation with the utilization hour, such as year to ministrative compulsory policies and restraint of law, which clearly defines year and in-year variation of run-flow function of electricity price to help the priorities of development, of inte- due to climate change, contradiction SHP overcome various barriers and gration into grid, and of purchasing between peak and valley load, limita- difficulties from interior and exterior. of SHP and its mechanism of price tion of load character and repairing V Design of framework for in- and financial subsidies, etc. The and emergency shut down, etc. All centive policies of SHP Shanxi Province has also made stipu- these factors have resulted in reduc- 1. Strengthening the administrative lation relating to production quota of tion of actual generation volume from compulsory policies SHP and favorable price for SHP. design value at least at 30%, some Drawing reference from foreign These local governments’ regulations even over 50%. countries, administrative compulsory have all promoted the SHP develop- Depreciation and interest of SHP policies should be more used in pro- ment in their respective places. are another important factors in de- moting the development of renewable 2. Stressing the function of resource termination of specific electricity en- energy which is the weak sector in disposal by electricity price ergy cost ad production cost. Inves- energy industries during the period Severe distortion still exists in tigation shows that depreciation and of transition to market economy. the electricity price system in China interest occupy 19.6% and 31% for These policies include quota system so far as environmental cost is re- average specific cost of SHP respec- and relevant regulations of govern- ferred. This is saliently shown in the tively. The reason for that is most SHP ment at various level. The focal point lower cost of productive raw material project are constructed in economi- of the policies should define and of thermal power plants with high cally backward remote hilly areas quantify the quota and target of de- pollution. The environment cost re- where financial capability is very lim- velopment for SHP market, and con- sulted from pollution has not been ited. Therefore the debt rate of SHP firm that renewable energy generation counted into production cost and the is generally high, mostly at about should occupy a definite proportion environmental space is of free use. 80%, some even higher than 90%. in local electric power construction. Later on, environment factor should The operation cost of SHP occu- Confirmation should also be made for be taken into consideration in deter- pies 26.6% of average specific cost, in the priority of integration of renewable mining the electricity price mechanism which maintenance, repairing and sal- energy including SHP onto the grid so that the real value of electricity and ary and welfare of staff are of larger and full purchasing all the electric en- environment could be accurately re- portion. This signifies that the level of ergy. This will be favorable to elimi- flected, and to establish a price technical equipment and management nate the unfavorable factors from in- mechanism for sustainable develop- need urgent improvement in one side stitutional system that affect the ben- ment eventually. and also that the low profit rate of SHP efit of SHP generation and supply. It is recommended that after ex- has caused insufficient financial ca- The quota system has been ecution of “separation of the grid and pacity of enterprises for technical ref- proved to be the effective incentive the plant, competitive price in selling ormation and scientific and technical policy for renewable energy in many to the grid”, the protection of market innovation on the other side. developed countries. It is recom- price for SHP onto the grid should be The fundamental principle to be mended that the execution should be implemented by the government so SHP NEWS, Summer, 2003 5 SHP in China that SHP will not be directly competed In which, P’ is the regulated tal input into SHP construction. It is with conventional energy. On this price; ROI is the index of price of con- recommended that the investment basis, the limit price system of SHP suming goods; X is the increasing am- loan for SHP development shall be onto the grid with a combination of plitude of labor productivity for SHP. listed in the financial budget of gov- incentives and restraints should be This method copes with the prin- ernment at various levels in the na- established. On the one side, price ciple of price decision by combination. The capital from financial trea- protection for SHP onto the grid with tion of incentives and restraints, and sury will mainly be used for disposal a combination of incentives and re- could effectively reflect the turn-back of capital, technical renovation of SHP, straints should be established. On the to external economic character for quality examination and establishment one side, price protection for SHP SHP and the subsidies to the addi- of systems for after-sale services, etc. onto the grid should be implemented tional cost resulted from constraint The loan for SHP shall be recovered to subsidize the additional produc- of public welfare character (with maturity over 25 year). tion cost caused by constraints of 3. Improvement of tax policy Multiplization, multiple channel and public welfare and external economic The policy of 6%value-added tax multi-direction of major investment character, thus enabling its rational for SHP should consistently be ex- part for raising capitals for SHP con- profit, and on the other side, it is also ecuted. It should be clarified that for struction should be implemented necessary to push the SHP to con- the SHP which does not supply through opening up of market, and tinuously reduce its cost and raise power by transferring from national absorbing investment from the soci- its competitive capability. The core grid, the amount of value-added tax ety, foreign funds and private enter- of the system is: The government de- of the supply sector of the grid shall prises. This policy is especially appro- fines the upper limit price for SHP be checked and ratified according to priate for isolated SHP separated from onto the grid, the latter should then the principle of making out value- the grid and operated dispersedly. be obliged to purchase and not to added tax invoice by 6% hand-in and 5. Creation of SHP market refuse in case the claimed price from 11% exemption. It could also be imple- SHP policy should eventually be the SHP plant is lower than the limit mented in the form of returning after set on the basic foothold of the mar- level. Those SHP plant requesting advanced levy to ensure the execu- ket, the government direct subsidies price higher than the limit will thus be tion of tax reduction policy for SHP. should be implemented through self- eliminated out of the sector. According to the experience of for- regulated mechanism by fully taking In decision of competitive limit eign countries, the tax policy for en- advantage of market element of rela- price for SHP onto the grid, the model ergy environment should be actively tionship between price with demand of comparatively mature price system stipulated for collecting the emission and supply. It should reflect the prin- for public service sector in market payment for environment pollution ciple of “who pollutes, who pays; economy countries like UK etc. could produced through the energy pro- who solves, who be benefited” and be used as reference. Accordingly, the duction process especially those formulate the market mechanism with initial price decision model of limit greenhouse gas like CO2, etc. This sound cycle of energy and environ- price for SHP onto the grid could be : collected fund shall be used for sub- ment development. Following the P=C*(1+R)+T+V sidies to the construction of clean continuous deepening of reformation In which, P is the upper limit price renewable energy. of power institutional system market for SHP onto the grid set by the gov- 4. Strengthening of policy guidance should be actively set up for promot- ernment; C is the average social pro- for SHP financing ing environment protection and ra- duction cost of SHP enterprises; R is SHP carries strong public wel- tional development of SHP resources the profit rate of the cost; T is offi- fare character, and therefore needs through multiple measures such as cially fixed tax; V is a regulation value support of government with respect division of properly rights, transferrig considering factors such as demand to financial budget, channel of invest- power to a lower level , privatization, and supply as well as policies. ment and financing and credit loan public tendering, licensing, transac- The regulation model of limit market. A long stable system of in- tion of environmental right, and de- price for SHP onto the grid is: vestment and credit loan should be velopment mechanism for clean en- P’=P[1+(ROI-X)] set up by the state to enable more capi- ergy, etc. 6 SHP NEWS, Summer, 2003 SHP in China A Chinese Magazine “Small Hydropower” by HRC he Chinese “Small Hydro- in China. Information of international ing SHP, and getting more and more T power”, a magazine that Na- SHP activities and important events popular in over 600 rural counties tional Research Institute for Rural in the field of SHP have also been which is primarily hydro-electrified, Electrification (NRIRE) and widely included. more than 2,300 counties with hydro- Hangzhou Regional Centre (Asia-Pa- This magazine has carried news, power resources, more than 50,000 cific) for Small Hydro Power has ed- views and articles on all aspects of small-sized hydropower stations, ited and published for 111 issues (bi- small hydro power. It is useful to those thousands of colleges or universities, monthly), allocated with the Interna- who are intersted in technical experi- research institutes and other admin- tional Standard Serial Number ISSN ence of SHP development in China. istrative authorities on SHP. Adver- 1007-7642, and China Standard Se- “Small Hydropower” is the only tising is welcome for any equipment rial Number CN33-1204/TV. It was professional publication on small hy- manufacturer to target Chinese mar- published in Chinese and with En- dropower in China, which is issued ket on SHP construction, equipment glish titles. Special features are tech- domestically and abroad. It is widely purchasing or other businesses. nical experience of SHP development circled in all corners of China concern- Subscription rates (1 year):USD40.00 The main contents of issue No.110 (2003 No 2) read as follow. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Strategy and Policy Top 11 events in rural hydro power industry in China in 2002 Framework design of incentive policies for SHP in China Study on speeding up development of SHP in Shouning county Technology Exchange Flood dispatching and disaster reduction in Tianqiao Hydro Power Station in Yellow River Optimizing design of Shiyanhe rubber dam in Shenzhen Analysis on financial appraisal for SHP under market economy Analysis of quality of oil in transformer under operation Computer Application Application of computer monitoring system of sluice gate in Feilaixia hydraulic project A comprehensive automation design of hydro generator Framework of protection system for information network of electric enterprises Renovation Discussion on impact of maximum net water head of hydro turbine on renovation design Turbine installed capacity enlargement in renovation of Qukufu SHP Station Operation and Maintenance Francis turbine unit maintenance in Shenwo SHP Station Malfunction analysis on generator exciter system in Tanghe SHP Station An introduction of repairing of generator stator after flooding Trial fabrication of a trash scraper on the trash rack in the forebay of Anchen SHP Station International Exchange Investing in China Prospect of small hydro power development in Indonesia

Published by Small Hydro Power Editorial Office, Add.: P.O.BOX1206, Hangzhou, China The National Rural Electrification Institute, Zip code:310012 Hangzhou Regional (Asia-Pacific) Tel.:86-571-88082848 Fax.:86-571-88062934 Center for Small Hydro Power E-mail:[email protected] ISSN 1007-7642 [email protected] CN33-1204/TV http://www.hrcshp.org/shp SHP NEWS, Summer, 2003 7 SHP in China

Some Problems on the technical innovation of small hydropower station

Gu Sihang ( China national Research Center for Abrasion and Cavitation in Hydraulic Machinery, Tientsin 300222) Liang Quanwei (Tsinghua University, Beijing 100084)

Abstract: Main problems on the op- tively. Here is some features of these and repair for ten, twenty or even eration of small hydropower station small hydropower stations: small ca- thirty years of operation. Unfortu- are listed in the paper. According to pacity (often less than 500~3000kW), nately, many drawings of design and practical experience, the author units, laggard technology, low effi- equipment are not complete and the brings forward some problems that ciency, low manufacturing quality, index tags of some units are even lost. should be noticed in technical inno- more hidden troubles in safety. Some Hence, collection, analysis and sum- vation in small hydropower station, of these stations have stopped op- mary of original data (including hy- including effective design for the in- eration, some have completed tech- drography, engineering design, the novation; paying attention to the nical innovation, some are under in- log of operation and inspection of loss of the water-passage system dur- novation, and more stations are in units and equipments), are important ing reformation of capacity increase urgent need of the technical innova- and should be the prerequisite for of the unit; focusing the work on the tion. successful technical innovation. innovation of hydro turbine; paying In order to offer some macro Some problems as follows are more attention to environmental pro- guidance to the technical innovation often met during operation of small tection and final acceptance etc. of small hydropower station, includ- hydropower stations built earlier: Keyword: small hydropower station; ing declaration and itemization, de- 2.1 The main performance param- hydraulic turbine; design for the sign for innovation (consultation), ex- eters don’t match the practical opera- technical innovation; final accep- ecution, acceptance and manage- tion parameters, the reasons are listed tance ment, and to make the innovation as followed: 1. Introduction more scientific and normalized, the 1) With some objective condi- The small hydroelectric re- Ministry of Water Conservancy and tions, the phenomenon of “choosing source in China is very abundant and Electric Power promulgated the pro- machinery for in-situ condition” or the developable reserves reach fessional standard SL 193-97 the “building station for hydraulic ma- 71,870MW which spread in more than rules of the technical innovation of chinery” existed in some small hydro- 1500 countis and cities all over the small hydropower station [1]. In re- power stations built before 1970’s, country. By the end of 2002, over cent years, some small hydropower which leads to the disagreement be- 40000 rural hydropower stations have stations had some success, while tween the units parameters and prac- been built and the total capacity has some problems existed according to tical parameters of stations. reached 28790MW which takes the the rules. Here the author would like 2) Because there are few models 40% of the developable reserves of to give some experience about the of runner in early standard model list the small hydroelectric resource in problems that he encountered during of hydraulic turbine runner for vari- the country. The total capacity of the writing the rules and the practical ous range, many small hydropower small hydropower stations which work of the technical innovation. stations have to use approximate have been operated for more than 30 2. Summarize seriously and clarify models, which leads to the disagree- years and 20 years is 1530MW and the main problems ment between the units parameters 7570MW which takes 5.3% and Many small hydropower sta- and the practical parameters of sta- 26.3% of the total capacity of the built tions have accumulated plentiful valu- tions. small hydropower stations respec- able data on operation, inspection 3) Some local administer rative

8 SHP NEWS, Summer, 2003 SHP in China sectors didn’t pay much attention to nomic. “a little horse pull a big carriage”. In type-selecting design of small hydro- 2.3 The hydraulic turbines in the such an instance, the capacity of the power stations and some design in- rivers rich in sediment are damaged equipments is wasted and the opera- stitutions haven’t enough serious- severely. tion dissipation is magnified too. mind and technical level, as a result, According to incomplete statis- Hence, all the problems, includ- diameter or rated head or rated speed tics, the phenomena of cavitation, ing operational head, inflow, waste of the turbine runner is not appropri- erosion and abrasion by sediment water volume, status of the electro- ate, which leads to the disagreement exists in one third of small hydro- mechanical equipments, operational between the units parameters and the power stations in China. Some tur- status of the hydraulic structures and practical parameters of stations. bines’ guide vanes would have se- metal structures etc., must be clari- 4) The practical hydrological vere leakage just one year after major fied thoroughly before the technical data such as flow or head of some repair, and some even can’t be started innovation is executed. Only if the small hydropower stations is not and stopped normally. The accident problems have been clarified, can tar- agreeable with the design data or of runaway, blades cracks and break geted innovation be put in practice some necessary data is absent, which often take place so that the safety of and a successful effect be obtained. leads to the disagreement between operation cannot be assured. 3. Optimize the design to achieve the the units parameters and the practi- 2.4 The insulation of generator maximum economic benefit cal parameters of stations. is aged and the pad of thrust bearing In order to take an effective in- Each of the four cases can make is burned out frequently. novation on small hydropower sta- turbines operate out of the optimal As a result of long time opera- tions, a technical consultation and an mode, thus results in lower efficiency, tion of generators in some small hy- optimum design must be done by more water consumption, higher vi- dropower stations and low insulation some qualified departments, and the bration and noise, more loss of out- level of rotors and stators, some of redesign scheme must be checked put, even much shorter service life of which have already been aged se- carefully by experts. A qualified turbines. verely, the accident of earth fault scheme can bring high level and ben- 2.2 The performance and tech- takes place frequently, which threat- efits to the stations. Contrarily, inat- nology of turbine are laggard and the ens the safety of units. Because of tention to the design will lead to some manufacturing quality is low. worse manufacturing quality and in- unwanted accidents and economic Some runner models of the stan- stalling quality, reliability of the thrust losses. For example, Hengjing dard model list of hydraulic turbine bearing is low and accident of thrust Hydrpower Station (I) in Zhejiang runner promulgated in 1964, such as pad burnout takes place frequently. Province whose total installed capac- ZZ600, ZZ460, ZZ587, HL365, HL123, 2.5 The hydraulic turbine and ity is 2 3000kW is to be uprated to HL702, HL638 etc., are still in service the electrical equipment don’t match 2 4000kW. Chinese Bohai Com- now. The technical level of these run- each other. pany of Water Conservancy and Hy- ners is equivalent to that of the for- The small stations output of tur- draulic Power Enginering Construc- eign runners made in 1930’s and bines is greater than the rated capac- tion Consultancy is commissioned to 1940’s, whose main performance pa- ity of generators or main transform- take the technical consultation and rameters is in lower level. ers, just like “a big horse pull a small select the optimum equipments (hy- The turbines of these small hy- carriage”. Therefore, the design dis- draulic turbine, generator, speed con- dropower stations have many disad- charge of the hydropower station is troller) and manufacturers. Thus not vantages in manufacturing and in- limited and some abnormal phenom- only the up to date technical produc- stalling quality run under defects for ena such as spilling water discharge tions are employed, but also the in- long time, which resulted in less ca- take place in operating time. On the vestment for unit equipment 1080 pacity and reliability. The operation other side, in some stations, capacity thousand yuan is saved for the owner, of turbines under low efficiency and of generators is greater than output which reaches 15.7% of the total price ill-conditions is not secure and eco- of hydraulic turbine, which just like of the agreement. SHP NEWS, Summer, 2003 9 SHP in China

The four principles, that is ad- should be chosen, or the shapes and and new turbines with high perfor- vantage, rationality economy and structures of the flow passage should mance should be employed or the particularity must be followed be improved. Here is and example of turbine should be redesigned. The through the technical innovation of Junzhuang Hydropower Station in rated speed of rotation should be se- small hydropower station. “Advan- Beijing in which six units of ZD760- lected accordingly, so that the turbine tage” is to select the turbine with LM-100 are installed. The rated dis- can work in the higher-level efficiency optimal capability and high technical charge of each unit is 125 kW while domain. Thus, not only the unit ca- level and to select the generator and the practical discharge is only 100kW. pacity and the operational efficiency its accessory equipments with the By employing the optimized three- can be improved, the annual gener- advanced capacity and reliable secu- blade turbine, the discharge of each ated energy can be increased mark- rity to cooperate with the turbine. unit increase to 180kW. The incre- edly. For instance, in the Jinxi Pozhou “Rationality” is to deal with the inal- ment is 44% of the design discharge Hydropower Station (I) in Guangxi terable restrictions of the stations and 80% of the original discharge. Province whose total installed capac- well. “Economy” is to increase the 2) To the stations whose oper- ity is 2 500kW, the original turbine annual output and improve the eco- ating head and flow rate are less than is HL300-WJ-50 (H=35m, Q=4m3/s). nomic benefit with the limited invest- the original design value, the method However, the practical operational ment. “Particularity” is to treat with of decreasing capacity and refurbish- head reaches 40m. As a result of the particular problems by the par- ing is effective. In order to adjust the changing the turbine to HL240-WJ- ticular means. For instance, for the turbine to work in the best or better 50, the discharge of each unit increase hydraulic turbines in the rivers rich conditions, and improve the opera- 90kW by 18%. in sediment, not only operational tional efficiency and increase the an- In case 1) and 3), when the ca- characteristics are to be improved but nual capacity, the turbine’s rated head pacity of the turbine has been deter- also service lives are to be prolonged and rated output capacity should be mined, the generator with accordant by taking the comprehensive method reduced according to the practical op- capacity should be employed to for abrasion resistance. Only if all erational head and flow of the sta- match it. And the accessory equip- things are considered can the “ad- tion, and some effective turbine ments should also be checked vantage”, “rationality” and should be employed or the turbine whether they should be changed or “economy” be achieved well. should be redesigned. Here the tur- not. At the present, the technical in- bine in Jiangkou Hydropower Station 4) To the stations in the rivers novation of most small hydropower in Jiangxi Province whose design type rich in sediment, the abrasion of the stations is the innovation on the hy- is ZD587-LH-330 (H=19.5m, flow passage must be considered and draulic turbine and generator units. Q=54.7m3/s, N=8800kW) is an ex- the innovation method combined Generally, the following measure- ample. The practical operational head with the method for abrasion resis- ments are taken in the technical inno- is only 17m and the discharge is only tance must be taken. According to vation design: 7800kW. By reemploying the turbine such conditions as the sediment con- 1) To the stations whose head of ZD105-LH-330, the discharge of centration in the flow through the and flow rate have slight difference each unit increases and reaches 9000 turbine, the medium diameter of the with the original design value, while kW by 15%. sediment d and the mineral compo- 50 the equipments and the performance 3) To the stations whose oper- nent of the sediment and so on, some are laggard, the method of uprating ating head and flow rate are higher new types of turbine, with close or a and refurbishing can be taken. In or- than the design value, the method of little lower unit speed n11, slightly der to improve the turbine’s efficiency increasing capacity and refurbishing decreased unit flow Q11, properly re- and capacity, and increase the annual is effective. According to the practi- duced the model cavitation coeffi- output, the new type of turbine that cal operational head and flow condi- cient m and higher efficiency m has the same or close relative height tion, the rated head and the rated should be employed in the innova- b0 of guide vane in this head range output capacity should be increased, tion design. And some other meth- 10 SHP NEWS, Summer, 2003 SHP in China ods can also be considered, such as counting is to check the maximum in- can reach only 600kW and 550kW. properly increasing the relative diam- crement of water pressure and rota- The total output capacity of all the eter of the distribution circle, optimiz- tional speed in transient process us- three units is 2300kW that is only ing the shape of the guide vane, re- ing the operational characteristics of 300kW more than that of the original ducing and homogenizing the relative the unit and the hydraulic character- single unit. Clearly, it’s the limitation flow velocity in the region of the guide istics of the water-conveyances sys- of the maximum flow Q and the max vane. On the other hand, in order to tem. In the mean time, the water pres- head loss hmax of the station’s insure the safety operation of the tur- sure should be checked whether it is original water-carriage system that bine and prolong the service life, in the design range of the water-con- result in the capacity loss of the three some comprehensive methods conveyances system in order to study units in flood period. This experience sidering the design technology of the and confirm the rationality and the is worth other stations using for ref- structures, material and the protec- possibility of the method of reinforce- erence. tive coating must be taken. ment. 5. Clarify the major and minor tasks Other than these four cases, for In a word, it’s the maximum flow, in reform for capacity increase stations that is “a big horse pulling a the head loss and the allowable maxi- The hydraulic turbine and the small carriage”, the innovation only mum pressure that restrict the incre- generator are under different condi- in the hydraulic generator may be ef- ment of capacity and these key fac- tions and have different level of tech- fective, including improving the in- tors caanot be ignored. Otherwise, the nological development. The turbine sulation level or the ventilation sys- economic benefit of the technical in- is the priming mover in the unit, so its tem to increase the capacity, and the novation and the safety operation operational efficiency has remarkable generator, can be redesigned and can not achieve. Here is an example influence on he whole unit. Generally, made if necessary. The main trans- of Dalongdong Hydropower Station the selecting-type technology of the former should be replaced if it capac- in Guangdong Province whose head turbine is difficult with lots of influ- ity is not enough. For the station that range is from 8m to 25m. encing factors considered, and there is “a little horse pulling a big carriage”, Originally, one Kaplan turbine are many problems during the course if it’s impossible to increase the ca- imported from Germany was installed. of practical operation. Taking account pacity by remodeling the turbine, just Its type is MK141, rated head is 29m, of all these factors, the primary and remain it to renew later. rated flow is 12 m3/s and the type of secondary task must be clarified in 4. Pay attention to the loss of the wa- generator is SM14/220-32, rated ca- reform of increasing capacity. Firstly, ter conveyance system pacity is 2000kW. In order to make the innovation of turbine should be In the reform of increasing cause of the discharge in flood period carried into execution, then the inno- pacity, a key component must be paid to generate more energy, the station vation of generator and electrome- more attention to, that is water-car- added forked pipes on the main pres- chanical equipment as well as hydrau- riage sysem of hydraulic turbine. Es- sure pipe in 1980 and extended two lic metal structure of the whole sta- pecially for the long penstock sys- 800kW units of propeller turbines, tion will be carried along. This is a tem, in which one diversion pipe is whose type is ZD661-LH-120, rated principle that should be followed in used by several units. head is 12.9m and rated flow is 8m3/s. the technical innovation of small hy- The hydraulic calculation is to Many times of experiments has been dropower stations. account the flow and the head loss conducted in flood period after the 6. Pay more attention to the environ- of the water conveyance system and innovation, each unit can arrive at the mental protection to plot the graph of relation of head rated capacity under the rated head To protect the environment is to loss and flow h=f(Q), so that the when operating singly. However, protect ecology and the space human maximum allowable rated head and when all three units are operating at being exists in. And the technical in- the reference flow in design can be the same time with the full guide vane novation of small hydropower station analyzed and selected. opening, the original 2000kW unit can can’t make an exception. For example, The regulation insurance ac- only reach 1150kW, the new two units in order to avoid polluting the down- SHP NEWS, Summer, 2003 11 SHP in China stream water, the oil leakage of the vation, the unit startup must be of small hydropower station should blades of Kaplan turbine should be checked and only if the result is ac- be carried out seriously throughout restricted severely. Another example cepted, can the unit operate in test. the innovation of small hydropower is that the noise of electromechanical Only if the result of test operation is station. If some problems are met dur- equipment should be limited in the accepted and the remaining problem ing the practical work, please report specified range. has all been solved, can the final ac- them to the Rural Hydropower and 7. Pay more attention to the final acceptance for the innovation works be Electrification Development Bureau ceptance put up, so that the long-term, high- of the Ministry of Water Conservancy In order to check the result of powered and secure operation can be in time. the reform of increasing capacity in ensured and the investment benefit Reference small hydropower station, the perfor- can be gained furthest. 1. The rules of the technical mance before innovation and perfor- 8.Epilogue innovation of small hydropower mance after innovation should be In order to improve the level of station tested and compared for the unit innovation of small hydropower sta- Chinese Hydraulic Conserva- whose capacity is greater than or tion, avoid some problems and gain tion and Hydropower Press equal to 5MW. In order to ensure the the most economic benefit, SL 193-97 1997.12 effectiveness of the technical inno- the rules of the technical innovation

Long-Term Sino-Vietnamese SHP Cooperative age automatic control system Project Approved for wider application.

he 5th Conference of Sino- 1) Study and exchange of poli- s the renewable and environ TVietnamese Science and cies and experience in SHP ex- Amentally sound energy, play- Technology Joint Committee was ploitation, development of ru- ing an important role in poverty al- held on 18 March 2003 in Beijing, ral economy and poverty alle- leviation and global environmental with the small hydro power devel- viation etc. protection, SHP development has opment and SHP station automa- 2) Investigation and appraisal of drawn the attention from both Chi- tion system listed and approved by the present SHP development nese and Vietnamese governments. the Chinese Ministry of Science and in Vietnam, recommendations The objective of the project is Technology as the long-term co- of appropriate development to explore the mode of SHP devel- operative project between China modes. opment, SHP equipment and auto- and Vietnam during the Conference. 3) Development of SHP automatic system which are appropri- Hangzhou Regional Center (Asia- matic controlling equipment ate for the SHP situation in Viet- Pacific) for Small Hydro Power has and software appropriate for nam with the aim to promoting the been designated as the implemen- the actual situation in Vietnam, SHP development in Vietnam. The tation organization on the Chinese including station computer and duration of the cooperation is three side. PLC software. years (from May 2003 to May The cooperation as jointly ap- 4) Establishment of a pilot lab of 2005). proved by the two ministries of sci- automatic control in HPC. ence & technology in the two coun- 5) Establishment of a pilot SHP (Source: SHP NEWS Editorial tries included: station for high and low volt- office http://www.hrcshp.org)

12 SHP NEWS, Summer, 2003 SHP in China

of SHP sites waiting for exploita- EcuadoranEcuadoran Guests Guests Visited Visited HRC HRC tion in Ecuador. After coming back, the Ecuadoran side may send invitation to HRC for SHP techni- On 21 March, a group of the Ecuadoran guests felt that HRC cal assistance. Both sides agreed to Ecuadoran guests headed by was the right one to cooperate for keep close contact for further ex- Mr.L.Honding paid a visit to HRC, the development of SHP resources ploring the modes of concrete SHP as introduced by Beijing Guo Jing in Ecuador. In regard with the ex- cooperation. ¡ö Import & Export Co., Ltd. HRC’s ploitation procedures, generation (Source: SHP NEWS Editorial honorary director, Mr.Zhu cost, electricity price, designing office http://www.hrcshp.org) Xiaozhang, deputy secretary gen- expenditures, and training etc the eral of HRC Secretariat, Mr.Pan Ecuadoran guests made a detailed Daqing received the guests. inquiry and evaluated highly HRC’s Ecuadoran Guests heard in expertise in SHP training, planning, Brasil early that the real country design, automation and equipment rich in SHP technology and expe- supply, expressing the keen expec- rience is China, however for a quite tation of long-term SHP coopera- period of time they were unable to tion with HRC so as develop the Ms. Cheng Xialei, Deputy contact with the appropriate the SHP potential in Ecuador and in Director of HRC, as one of the SHP organization in China. After other Latin American countries 52 experts of the Chinese delega- the brief introduction of both sides, jointly. Currently, there are a couple tion, is participating in the Third World Water Forum, which was opened in Kyoto, Japan on Australian Mr.Polglase Visited HRC March 16. The experts’ delegation of r.Polglase from Hydro Tas- Both sides conducted friendly M China, headed by Prof. Zhang mania of Australia paid a and detailed talk on the container- Ruikai, president of NHRI, has visit to HRC on 15 April. Hydro Tas- ized mini hydro technology and submitted 22 papers to the con- mania of Australia is a company spe- identified the work in the next ference. 17 experts will deliver a cialized in hydro power international phase. Also, the utilization of the speech at the conference and 5 consultation with its headquarters latest renewable energy like wind experts will make an address on in Australia. It is powerful in SHP power and battery technology were the Asian-Pacific Day. exploitation, construction and fi- discussed. Meanwhile, information The delegation will share the nance etc. It is also one of the or- on the SHP investment both home abundant experience and new ide- ganizers for the “Water & Energy” and abroad was exchanged. The ologies on water resource devel- session of the Third Water Forum prospect for the bilateral coopera- opment with the peers all over recently held in Japan. At the Fo- tion was felt promising. ¡ö the world. Fruitful results are rum Mr.Polglase got acquainted much expected to be scored. ¡ö with HRC and this time he paid a (Source: SHP NEWS Editorial (Source: SHP NEWS Editorial special visit to HRC after attending office http://www.hrcshp.org) office http://www.hrcshp.org) a meeting in Beijing. SHP NEWS, Summer, 2003 13 SHP Development and Programme Worldwide

Improving the cost-effectiveness of small hydro through intelligent load management

Dr N P A Smith Dr P Taylor and Mr Tim Matthews Sustainable Control Systems Ltd Econnect Ltd 4 Charleston House, Peel Street 19 Haugh Lane Industrial Estate Nottingham. UK Hexham. UK

Introduction partially utilised and, since most limiter. If they exceed the current limit stand-alone schemes are run-of- they are temporarily disconnected. In recent years a considerable river, available energy is wasted. By fitting current limiters to all con- amount of effort has been spent on This reduces the benefits to the nections the maximum demand can be reducing the capital costs of stand- recipients and the overall cost- controlled to within the capacity of alone hydro schemes. Savings have effectiveness of the scheme. the generator. Demand growth can been made in a number of areas, in- This paper introduces two tech- be managed by only allowing upgrad- cluding standardisation of scheme nologies for demand-side man- ing to higher rated current limiters in components, replacement of me- agement that together tackle the the event that there is surplus capac- chanical and hydraulic controls with problems of overloading and ity. power electronic based systems, and low load factors. Their applica- The concept of a fixed or limited labour contributions from project tion to overcome load manage- current connection is well estab- beneficiaries. However, little atten- ment problems at a rural hospi- lished, although until now it has suf- tion has been given to improving load tal in Uganda is described. fered from a lack of suitable technol- factors in order to maximise the ben- ogy. In Zimbabwe standard minia- efits from schemes. THE TECHNOLOGIES ture circuit breakers are used as cur- Stand-alone hydro schemes are Peak demand control by means of rent limiters, replacing metered sup- often characterised by high peak and current limiters plies to more than 100,000 households low average demand. This is particu- The use of kilowatt-hour meters connected to the main grid[2]. How- larly the case with community electri- is so widespread that it is usually as- ever, these circuit breakers have a fication schemes in developing coun- sumed that direct measurement of serious drawback – as they have to tries where average demand can be electricity consumption is the only be readily accessible for resetting, as low as 15 to 20% of the peak de- acceptable basis for charging for an they can be bypassed easily by mand[1]. This has two main disad- electricity supply. However, kilowatt- fraudulent consumers. vantages: hour meters do not limit peak demand, A purpose designed current lim- 1) Generators are invariably over- and as a result there are many stand- iter, called PowerProvider has recently loaded at peak times. This re- alone electrification projects where been introduced which auto-resets sults in undervoltage operation demand has risen and exceeded the after a fixed time delay. These are for small overloads and re- supply capacity with serious conse- more convenient to the user as, in the peated tripping for large over- quence to supply quality and reliabil- event of a trip, they can just reduce loads. The result is customer ity. their load and wait for the power to dissatisfaction and productivity With a current limited supply, the con- come back on. In addition, they are losses where there are income- sumer is allowed to draw a current up more secure against tampering and generating activities. to a prescribed limit at all times, and bypassing as they can be mounted 2) During times of low demand, the pays a fixed monthly service fee ac- on a service or distribution pole out- power from the hydro is only cording to the rating of the current side the house. 14 SHP NEWS, Summer, 2003 SHP Development and Programme Worldwide

The fixed monthly payments for DILCs sense the generated frequency the entire hospital complex would be a PowerProvider supply make bud- and switch on their loads when the without power. Sometimes the shut- geting easier for the consumer and frequency is normal. Overloading will down would occur during an opera- reduce the likelihood of defaults on cause the frequency to fall and the tion, putting the life of the patient at payments. An annual advance pay- DILCs sense this and switch out the risk. ment option can be offered to enable loads that they control. The DILCs A number of attempts have been farmers to pay for their supply when can be set at different frequency made to control the peak demand. income is generated at harvest thresholds so that the low priority These have included installing time time[3]. loads can be prioritised. The use of switches on water heaters so that they DILCs enables more productive use operate only at night and confiscat- Improved off peak energy utilisation of the generated power, reducing the ing electric cookers and other high through distributed load controllers amount of energy that is dissipated power loads from residences. How- Most small hydro schemes bein the ballast. The following case ever, improvements have always been low 250kW capacity use an electronic study shows how, by using both temporary as demand in the hospital load controller to regulate the gener- DILCs and PowerProviders, problems has continued to grow and some staff ated frequency by dissipating any with overloading can be solved and have failed to obey the restrictions surplus power in a resistive load more productive use of energy can on appliance usage. known as the ballast or ‘dump load’. be achieved. By 2001 the extent of the over- For schemes of this size, such con- loading problem was such that it fre- trollers are cheaper and more reliable THE CASE STUDY-KISIIZI HOS- quently proved very difficult to suf- than flow control governors. The PITAL, UGANDA ficiently reduce the load after a trip to energy dissipated in the ballast is Background a level where an immediate repeat trip rarely used productively. There are a Kisiizi hospital was founded in would not occur. As a result, an iso- number of reasons for this: 1958 and is situated in South West lation switch was fitted so that the The ballast heaters are usually in- Uganda. It serves a large rural area. entire residential supply could be dis- stalled in the turbine house for In the mid 1980’s a 60kW hydro sys- connected if necessary. This was a cooling by running water and this tem was installed using a turgo tur- drastic measure in view of the effect is often remote from the consum- bine, synchronous generator and on the staff and their families. ers. electronic load controller. This re- The uncertain and variable power placed a smaller hydro system and is Load management package dissipation is unsuitable or incon- the only electrical power supply for After discussions with manage- venient for many applications. the hospital. ment and staff at the hospital, a new The ballast is essential for correct As well as supplying power to load management package was de- operation of the hydro system and the hospital, the generator supplies signed to provide the following: therefore it should not be used for the residential accommodation for the 1. A secure supply to the hospital. any application that may compro- management, doctors, nurses and 2. Limited secure supplies to the mise its reliability. ancillary staff. From the outset the staff houses for essential loads, The Distributed Intelligent Load power was supplied free of charge such as lights and refrigerators. Controller (DILC) allows productive and seen as beneficial for attracting 3. Additional power to the staff use to be made of the surplus power quality staff. Over the years the hos- houses at off-peak times, such available without overloading the pital and staff numbers have grown that water heaters and other high system[4]. A number of DILCs are and by the early nineties the load was power appliances can be used fitted at convenient points on the dis- exceeding the power generated at when sufficient power is avail- tribution system, each controlling a peak times. The consequence of this able. low priority load. Typical loads are was that the overload protection sys- The limited secure supplies were water heaters or room heaters. The tem would shut down the turbine and made using 83 PowerProvider type SHP NEWS, Summer, 2003 15 SHP Development and Programme Worldwide current limiters, which were fitted one The PowerProviders and DILCs Results to date per house. The current ratings are 1 were fitted between September and Figure 1 shows the number of Amp, 2.5 Amps and 5 Amps, which December 2002. Generator perfor- system trips before March 2002 and correspond to 230VA, 575VA and mance data, prior to and after fitting December 2002. There is a clear re- 1150VA. The current rating fitted was of the units, was obtained by a com- duction in the number of trips, which determined according to the senior- puter based monitoring system that indicates that the load management ity and needs of the particular staff was installed in March 2002. package is producing a marked ben- member. If a household trys to exceed the current rating of their PowerProvider supply only they are inconvenienced by temporary dis- connection and the supply to the hospital and other residences is safe- guarded. DILCs are used to provide extra power to the staff houses at off-peak times. 40 DILCs were fitted in senior staff houses and communal buildings such as the nurses’ hostels. A dedi- cated electrical circuit, separate from the circuits limited by the PowerProvider, is supplied for the DILC and provided a bonus supply of up to 13 Amps. Some DILCs were designed to replace the time switches on the water heaters and the others were fitted with a standard socket so that other high power appliances such as cookers, irons and kettles could be used. The trip frequencies were set at between 47 and 49 Hertz for the water heater DILCs and between 46 and 47 Hertz for the other DILCs. As a result, at the rated frequency of 50 Hertz all the DILCs are switched in. When the hospital load is increased so that the generator output is exceeded, the frequency falls and causes some or all of the water heater DILCs to switch off. At higher hospital loads, some or all of the other DILCs are switched off. Hence, the supply to the hospital is secured and the high power domestic appliances have a higher priority over the water heaters. 16 SHP NEWS, Summer, 2003 SHP Development and Programme Worldwide efit. Some system trips are due to tice of switching off loads when they be used to overcome problems with trashrack blockages or problems with were not required so as to free up their overloading and poor energy the turbine-generator and not a re- PowerProvider controlled supply. utilisation on existing schemes, pro- sult of overload and therefore it is Households that did not have a 5 vided that there is strong manage- possible that none of the trips in No- Amp PowerProvider or access to a ment. However, they are best in- vember or December were due to DILC socket complained that they stalled at the beginning of hydro overload. were unable to iron with their elec- projects so that good practice is in- As well as the improvement in tricity supply. This is being overcome troduced from the outset. terms of fewer system trips there has by providing more DILCs in commu- been a noticeable increase in the nal areas and offering to modify the Acknowledgements amount of power consumed in the power consumption of existing irons We would like to thank Dr Bill hospital and residences and hence a so that they can be used with 2.5 Amp Cave and the management and staff reduction in power dissipated in the PowerProviders. at Kisiizi hospital for their assistance ballast. Figures 2 and 3 show results Overall the feedback has been with the project and to acknowledge for a typical day prior to installation positive, with praise for the improved the financial support of the UK De- of the load management package and reliability of the supply both in the partment of Trade and Industry. at the end of the installation period. hospital and homes. Also there has With all the DILCs and been a significant increase in the References PowerProviders installed there is an amount of hot water available and 1. ‘Best Practices for Sustainable De- increase of more than 15% in the people are pleased once more to be velopment of Micro Hydro Power power consumed in the hospital and able to use cookers, kettles and other in Developing Countries’, Smail residences and little or no power is previously banned appliances. Khennas and Andrew Barnett, Re- dissipated in the ballast between port for DFID and World Bank, 7.30am and 11.30pm. Conclusion March 2000. (www.itdg.org.uk). DILCs and PowerProviders are 2. Zimbabwe Electricity Supply Au- Customer satisfaction complementary technologies, which thority Data, 1996. There was an initial period of dis- are now proven to improve the reli- 3. www.scs-www.com quiet as people went through a learn- ability and productive use of power 4. www.mini-grid.com ing process and established a prac- from small hydro schemes. They can 5. www.econnect.co.uk

Paula Little Econnect Limited, Nigel Smith Distribution, Sales & Market- Registered in England and Dr N.P.A. Smith ing Manager Wales 2911845 Managing Director Products Team Registered Office: Sustainable Control Systems Energy House Ltd Independent Specialists in 19 Hangh Lane Industrial 4 Charleston House the Grid Integration of Estate Peel Street Renewable Energy Hexham Nottingham Northumberland NG1 4GN Switchboard: NE46 3PU UK +44(0) 1434 613600 UK Tel:44(0)115 9418941 Fax: +44(0) 1434 609080 Fax:44(0)115 9483694 Direct Dial: e-mail:n.smith@scs- +44(0) 1434 613647 www.com Email: web:www.scs-www.com [email protected]

SHP NEWS, Summer, 2003 17 SHP Development and Programme Worldwide Distributed intelligent Load Controllers

Technical Specification A range of low-cost microcontroller based devices designed to improve the reliability and efficiency of isolated power systems. This is achieved by controlling or matching loads connected to the generator and the power, which is available. It is possible to provide both centralized and distributed solutions.Used together, the controllers will provide a total system solution.

Features/benefits Governing Load Automatic Load Current Sensing Controller Controller Load Controlller Disconnect non-essential loads at peak demand, (e.g., space & water heating) Disconnect loads according to consumption Temporarily disconnect non-vital loads during overload conditions Protect sensitive loads from “brown out” conditions Increase system efficiency and reduce power losses Increase Renewable Energy penetration Gradual re-introduction of loads as power system stabilizes Provide system soft start

Facilitate stable operation with 100% wind penetration

Provide governing action by matching loads to the available power

Use excess energy in a distributed and useful way

Provide a fault tolerant solution

ECONNECT LIMITED.ENERGY HOUSE.19 HAUGH LANE INDUSTRIAL ESTATE.HEXHAM.NORTHUMBERLAND.NE46 3PU.UK T:+44(0)1434 613600 F:+44(0)1434 609080.E:[email protected]:www.econnect.co.uk.www.mini-grid.com

18 SHP NEWS, Summer, 2003 SHP Development and Programme Worldwide

Governing Load Controller Automatic Load Controller Current Sensing Load Controller Power Supply 50Hz model- 50Hz model- Voltage 180V to 260V voltage 180V to 260V a.c voltage 180V to 260V a.c a.c frequency 45 to 55 Hz frequency 44 to 50 Hz Frequency 45 to 55 Hz 60Hz model- 60Hz model- voltage 85V to 130V a.c voltage 85V to 130V a.c Electrical consumption frequency 55 to 65 Hz frequency 53 to 60 Hz 30mA Current consumption Current consumption appro×75mA appro×75mA

Frequency Zero crossing techniques 16 frequency thresholds 0.1% accuracy Measurement: 0.1% accuracy, defined in defined in firmware firmware Voltage N/A 3 voltage thresholds N/A Measurement: defined in firmware Current N/A N/A 0 to 50A Measurement: Load Switching: Opto-coupled TRIAC N/A N/A Tuning: self tuning membersip N/A N/A functions Configuration N/A 50/60Hz operation N/A Options: Time delay-random values in 4 ranges from 8 seconds to 16 minutes Frequency threshold. Voltage threshold (voltage detection can be disabled) Display: Green led-indicating load Green led-Indicating load Green led-Indicating status status supply connected Amber led-indicating self Amber led-Indicating Amber led-Indicating tuning delay progress supply overloaded Red led-Indicating supply disconnected Switching Standard-3kW load single Standard-3kW load single 7500 VA Capability: phase phase Optional-greater than 3kW Optional-greater than 3kW load (single or 3 phase) load (single or 3 phase) Enclosure DIN rail mounted Plug mounted-(70mm Wall mounted-(170mm Options: (100mm wide×75 high× wide×110 hign×deep) wide×110 high×65 (Can be 110deep) Din rail mounted-(50mm deep) customized) Wall mounted wide×75 high×110 deep) (180mm wide×180 high × Wall mounted-(170mm 90 deep) wide×110 high×65 deep) Weigh: DIN rail mounted-500g Plug mounted-260g 3kg wall mounted-750g DW rail mounted-200g Wall mounted-390g Standards: Low Voltage Directive Low Voltage Directive Low Voltage Directive (72/23/EEC) (72/23/EEC) (72/23/EEC) EMC Directive- EMC Directive- EMC Directive- (89/336/EEC) (89/336/EEC) (89/336/EEC) CE Marked CE Marked CE Marked Environmental: Operating Temperature Operating Temperature Operating Temperature Range-40 to +85 degrees C Range-40 to +85 degrees C Range-40 to +85 degrees C Enclosure rated at IP 54

SHP NEWS, Summer, 2003 19 3rd World Water Forum:Country Report

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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012The Editor’ s Note 12345678901

1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901

1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012eginning from this issue, we will a focus on hydropower and was or- policy/legislation should include1234567890 hy-1 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901

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1B234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901

1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901 1articles2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 from the “Third World Water dations of the “World Summit on Sus- the circumstances, there is a1234567890 role for1 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901

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1Forum”2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 held on March 16-23,2003 in tainable Development (WSSD, in both large and small schemes.’1234567890 etc. 1

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1Japan.2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 The Forum revealed that Johannesburg, South Africa, 2002). The International Hydropower12345678901

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1around2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 the world, numerous water ttended by Ministers and Heads Association (IHA) presented1234567890 these1

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1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901 1shortages,2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 water pollution and in- 170 countries, the Kyoto Ministerial of which is a volume of Country1234567890 Re-1 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901

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1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901 1creased2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 damage by flood and draught Conference formed the conclusion of ports, reviewing the past, present1234567890 and1 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901

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1among2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 others. Moreover, the areas the Forum, which culminated in the future roles of water for energy1234567890 in 161

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1suffering2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 from water based problems ratification of a formal Declaration. countries (representing a cross-sec-12345678901

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1including2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 food shortages and epi- Some specific reference to hydro- tion of countries at different1234567890 stages1

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1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901 1in2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 other areas, water related problems tion, such as (Item 15) “We recognize ments include a comprehensive1234567890 re-1 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901

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1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901 1have2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 led to international conflicts. If the role of hydropower as one of the view of the Role of Hydropower1234567890 in1 1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901

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1adequate2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 actions are not taken to al- renewable and clean energy sources, sustainable development and1234567890 a draft1

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1leviate2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 the present conditions, it is and that its potential should be real- of sustainable Guidelines, etc.1234567890 These1

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1expected2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 what water issues will be ized in an environmental sustainable documents will surely bring1234567890 about1

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1Use2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 of Water for Energy” was held, are seen as essential mandates for the the above stated documents1234567890 to pub-1

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1in2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 Kyoto which reviewed the relation- future role of hydropower, the con- lish in our journal for offering1234567890 to our1

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1ships2345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 between water and energy, with tents of which include: ‘Renewable readers. 1234567890 ¡ö 1

1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901 IRAN

Report submitted by: Deputy Minister for Water Affairs, Ministry of Energy 1. INTRODUCTION key. A geographical and topographi- Khorassan Province. It is 120 km in 1.1 Location and physical descrip- cal map of the country is shown in its widest part to the north of Tehran. tion Fig. 1.1. Taking into account the Alborz ran is in the south of Asia, be- Iran is a mountainous country, and Zagros mountain ranges and the I tween 44º02´ and 63º20´ E lon- with mountains covering more than central plateau, and also from topo- gitude and 25º03´ to 39º46´ N latitude. 57% of its territory. The Zagros moun- graphical point of view, Iran can be The country covers an area of about tain range, with a length of about 1300 divided into the following main re- 1.65 million km2. Having a perimeter km and an average width of 200 km, gions: of 8731 km, Iran is bordered to the consists of a range of parallel high- • Mountainous terrain, which con- north by Armenia, Azerbaijan, the lands. There are numerous plains and sists of the lands covered by the Caspian Sea and Turkmenistan; to valleys between the highlands, country’s two main ranges and the east by Afghanistan and Paki- through which several permanent and some other mountains located in stan; on the south by the Oman Sea, seasonal rivers flow. The Alborz the central plateau of the country. the Strait of Hormuz and the Persian mountain range, with a length of 1500 • The central plateau, which is sur- Gulf; and, to the west by Iraq and Tur- km, extends from Azerbaijan to rounded by the mountains and 20 SHP NEWS, Summer, 2003 3rd World Water Forum:Country Report

contains vast deserts (Dasht-e-Kavir and Kavir-e-Lut), Table 1.1 – Some Economic Parameters in Iran alluvial plains, closed basins, lakes and Salinas. Economic Year • Khuzestan plain, which is an extension of the Bein-ol- parameter 1981 1991 2000 2001 Nahrein plain of Iraq, as well as some littoral plains GDP (US$ billions) 100.1 91.5 101.5 114.1 Gross domestic along the coasts of the Persian Gulf and the Oman Sea savings/GDP 18.8 25.1 38.7 35.8 in the south of the country. Current account • The coasts of the Caspian Sea. balance/GDP -3.4 -11.2 13.3 4.2 Interest payments/GDP 0.2 0.0 0.3 0.2 1.2 Population, settlement and trends he population of the country was estimated at Table 1.2 – Structure of the Economy T 65,865,362 in 2002. There are higher concentrations Economic Parameter Year of people in the north and west. Tehran is the capital, and (% of GDP) 1981 1991 2000 2001 Agriculture 21.5 23.1 17.7 18.6 the largest city. Other major cities include Mashhad, Industry 31.4 28.3 33.3 30.1 Tabriz, Esfahan, and Shiraz. The central parts of the coun- Manufacturing 10.0 14.0 15.3 12.5 try, which are covered by deserts, including salt deserts, Services 34.5 48.7 49.0 51.3 are virtually uninhabited. Since 1881, the country’s popu- Table 1.3 – Trends in trade (US$ millions) lation has increased from 7.7 to 65 million. In other words, Economic parameter Year the annual population growth rate has increased from (average annual growth) 1981 1991 2000 2001 0.6% to 3.9% within the last 120 years. Total exports (FOB) 11,831 18,661 29,900 26,000 Fuel 11,491 16,012 24,280 19,339 ith a population of 65 million, and a GDP of US$115 Total imports (CIF) 13,138 25,190 17,900 21,600 W billion, Iran is the second most populous country Fuel and energy 1,000 400 274 625 and has the second largest economy in the region. It is Export price index (1995=100) 1,000 400 69 70 also the second largest OPEC producer, and has the Import price index world’s second largest gas reserves. Key economic pa- (1995=100) 51 93 58 58 rameters and functions are as shown in Tables 1.1 to 1.3. 2. WATER TRENDS hydropower. Although consumption in the agriculture 2.1 Trends and issues in the use of water sector is much more dominant in comparison with the 2.1.1 Water uses two others (industrial, urban and rural), it has had much Table 2.1 shows various water consumers from 1963 less growth. to 2001 in comparison with the population growth and 2.1.2 Water quality Among the most important factors impacting on the environment and the quality of water resources in the country, wastewaters, waste and recycled water could be mentioned. The total renewable water resources of the country are 130 billion m3 per year. 2.1.3 Water supply Concerning the total number of 70 dams under construction and about 200 under study/design, Iran is among the leading countries in the world. The water supply services available at present are as follows: • 95 storage dams with a regulating capacity of 32 billion m3; • primary drainage networks cover- Fig. 1.1. Geographical and topographical map of Iran ing more than 1.4 million ha; SHP NEWS, Summer, 2003 21 3rd World Water Forum:Country Report

• secondary drainage networks teorological sta- covering 0.6 million ha; tions, 136 show • hydropower plants with an in- undesirable cli- stalled capacity of 2051.5 MW and matic changes, energy production of 6516.6 GWh/ having a ten- year; and, dency towards • 110 000 deep wells and 300 000 an arid climate; semi-deep wells with a total capac- and out of 992 ity of 44 billion m3. hydrometric sta- 2.1.4 Legislation tions, 36 show a The major laws implemented decrease in nor- Fig. 2.1. Irrigated and Non-irrigated land use. with regard to water affairs in the mal discharge and an increase in the • Based on different climate change country cover the following aspects; number of observed floods, which is scenarios, as the temperature rises, • the preservation and maintenance the indicator of arid regions. evapotranspiration will increase in of groundwater resources (1966); In recent years, an increase in most river basins throughout the • water and its nationalization the Caspian Sea level has inundated year. A 2°C to 6°C increase in tem- (1968); coastal areas. In the past 30 years, perature will augment the annual • fair distribution of water (1982); the temperature in Iran has increased evapotranspiration by 6% to 12% • maintenance and fixing of bound- by about 0.5°C on average, and a in the 30 basins throughout the ary river beds (1983); and, change in the time of snowmelt and a country and decrease the annual • the encouragement of investment decrease in precipitation have been runoff within the range of 1% to in water projects (2002). observed. Also, an increase in the fre- 5%. 2.1.5 Water security and meteoro- quency of destructive floods and • The modelled runoff distribution logical changes droughts has been recorded in hy- shows a significant increase in Generally, the changes in climate dro-meteorological data. peak flood flows during the win- will affect the existing hydrological Research on the effects of glo- ter, and a decrease in mean river cycle. Changes in the cycle are likely bal warming on hydrology and water discharge. to have a significant impact on water resources conditions in Iran has been • Global warming will reduce the resources. There could be consider- carried out on several rivers and lake snowfall in winter with a signifi- able change in river flows, especially basins by using historical hydro-me- cant change in the seasonal pat- in arid and semiarid regions thus, in- teorological data and runoff models, tern of river flows (a decrease in creasing the risks in planning new together with global warming sce- the snowmelt-generated spring projects (for instance, hydro narios. The research projects have flow). This change affects various projects). been carried out with no restriction water uses and the operation of An analysis of more than 30 of areas. Also, comprehensive as- existing water resources manage- years’ data collected from various me- sessment work on the impact of glo- ment facilities. teorological and hydrometrical sta- bal warming has been conducted. 2.2 Relationships between water and tions in Iran indicates that, of 143 me- The main results obtained so far are: energy

Table 2.1 – Water consumption changes (1963-2001) 2.2.1 Agriculture Sector Year Average annual f the total area of 1.648 million 2 1963 1979 1988 1996 2001 growth (%) O km , 15,458,900 ha are used for Agriculture (billion m3) 44.1 49.8 70.6 81.4 86 1.77 cultivation. The principal agricultural Urban and Rural (bcm) 0.57 1.9 3.2 4.5 6 6.39 products are wheat, rice, other grains, Industrial (bcm) 0.03 0.4 0.7 0.9 1.1 9.94 Total (bcm) 44.7 52.1 74.5 86.8 93.1 1.95 sugarbeet, fruits, nuts, cotton, dairy Hydropower generated products and wool. According to the (GWh) 211 6249 7310 7377 502 6 8.7 data for the year 2001, cultivated lands Population (millions) 23.4 36.4 53.4 60 65 2.72 3 Per capita, urban and have used 86 billion m of the water rural consumption (m3/y) 25.6 52.2 59.9 75 92.3 3.43 resources of the country (92.4% of Per capita total the total water resources). With re- consumption (m3/y) 1910 1431 1395 1447 1432 -0.75 gard to the climatic condition, it is not 22 SHP NEWS, Summer, 2003 3rd World Water Forum:Country Report

Table 3.1 – Production of primary energy and share by fuel type, between 1987 and 2000 (Mboe)* Mb/d in 1981 and then increasing Type of Amount Share (%) Annual under the Second Five-Year Plan to fuel 1987 1993 1999 2000 1987 1993 1999 2000 growth rate(%) 3.1 Mb/d and in 2001 to 3.5 Mb/d. Crude Oil 891.7 1426.7 1234.1 1373.0 90.8 86.2 76.8 77.6 3.4 Natural Gas 69.6 206.7 356.7 381.3 7.1 12.5 22.2 21.5 14.0 The annual level of oil production is Solid Fuels 4.8 3.6 5.7 6.0 0.5 0.2 0.4 0.3 1.7 now no longer determined by produc- Hydro Energy 13.1 15.3 7.8 5.7 1.3 0.9 0.5 0.3 -6.2 tion constraints, but is regulated by Renewable Energy – – 0.1 0.05 – – 0.004 0.003 – OPEC’s production quota. This Non-Commercial means that the exportable surplus of Fuels 3.3 3.1 2.8 2.7 0.3 0.2 0.2 0.2 -1.5 oil is determined (at least in the short Total 982.5 1655.5 1607.2 1769.8 100.0 100.0 100.0 100.0 4.6 term) by the domestic level of demand. *Mboe = Million barrels of oil equivalent The reduction in oil consumption by possible to apply rain-fed fallow for from industries in the country. In 2001, energy savings and fuel substitution most of the country. For this reason, 1.1 billion m3 of the available water has therefore become the most impor- a considerable part of the available resources were used by industry. tant policy objective in the national water is used for irrigation purposes. 2.2.4 Power generation sources energy policy. 4.6% of the total produced energy is According to statistics for elec- In view of this background and consumed in the agriculture sector. tricity generation from 2001, the total the country’s vast reserves, natural actual capacity of powerplants under gas is destined to become the fuel of 2.2.2 Resource development the management of the Ministry of the future, replacing other fuel wher- The total annual fuel production Energy was 28,032 MW. The break- ever it is economic. Natural gas pro- was 1700 million barrels in 2001 of down was as follows: steam powered duction started in 1966 for exports to which about 1400 million barrels is plants, 14,402 MW (51.4%); combined the Former Soviet Union. During the that of crude oil. cycle, 4060 MW (14.5%); gas, 7038 1970s, its use in Iran began to develop The number of active mines has MW (25.1%); hydropower, 1999 MW as well. Today, it has become a major increased from 718 in 1986 to 2436 in (7.1%);diesel, 533 MW (1.9%). fuel in Iran. The annual production 1998. The total quantity of minerals 3. ENERGY TRENDS of natural gas is about 72 billion m3, produced has increased from 48,710 3.1 Energy sector of which more than one-third is used kt (1 kt = 1000 tons) in 1991 to 75,751 The macroeconomic sector pro- for power production and the rest in kt in 1999. vides inputs to the energy sector and the residential and industrial sectors. 2.2.3 Industry is also a receiver of inputs from the Iran’s primary resource base in- About 30% of the GNP comes energy sector. cludes oil, natural gas, hydropower, Oil has been the main domestic coal and solar energy. The sources Table 3.2 – Recognized fuel reserves in Iran fuel since 1960, and has played a ma- Type of Recognized Share Annual Reserve/Prod of primary energy production are fuel reserve 1993 production ratio jor role as the principal generator of given in Table 3.1 Geothermal energy (1000 Mboe) (1000 Mboe) export income and surplus finance. is about to be developed on an ac- Oil 99 30% 1.3 76 In the past, annual crude oil produc- countable scale. The present esti- Natural Gas 168 51% 0.4 420 Coal 62 19% – – tion in Iran fluctuated considerably, mates of recognized reserves are Total 329 100% 1.7 – reaching a peak of 6 Mb/d (million equivalent to 99 billion barrels of oil *Mboe = Million barrels of oil equivalent barrels/day) in 1974, decreasing to 1.3 (about 9.4% of the world total) and Table 3.3 – Power sector in Iran 26.6 trillion m3 of natural gas (close to Power sector parameter 1989 1998 1999 2001 Annual growth rate 16.8% of the world total and second 1989-91 (%) Installed capacity (MW) 14442 24437 25205 28032 5.7 largest national reserves in the Generation (GWh) 48725 97862 107207 12427 8.1 world). The present estimates indi- Transmission and cate that the recognized reserves of distribution losses (%) 14.7 15.5 15.7 17.3 Consumption (GWh) 39956 77646 84656 97171 --7.7 coal are about 13 billion tons (see -Residential (%) 39.5 36.9 35.2 33.8 Table 3.2, in Mboe). -Industry (%) 21.2 31.1 31.3 34.6 The final demand structure of -Others (%) 39.3 32.0 33.5 34.6 energy is characterized by a decrease Number of consumers (1000) 9338 14128 14875 16345 4.8 Number of Employees 60740 52158 51943 51262 -1.4 in the oil and a considerable increase in the natural gas shares during the SHP NEWS, Summer, 2003 23 3rd World Water Forum:Country Report

Table 3.4 – Installed capacity of powerplants power sector are shown in Table 3.3, Type 1988 1999 2001 Av. annual growth rate (%) and the capacity contributed by the MW % MW % MW % Steam 7475 54.6 13102 52.0 14402 51.4 5.2 various types of plant is shown in Combined cycle – – 3546 14.1 4060 14.5 – Table 3.4. The annual average growth Gas 3489 25.5 5984 23.7 7038 25.1 5.5 rate of installed capacity, generation, Hydro 1914 14 1999 7.9 1999 7.1 0.3 Diesel 803 5.9 574 2.3 533 1.9 -3.1 consumption and the number of cus- Total 13681 100 25205 100 28032 100 5.7 tomers were 5.7, 8.1, 7.7 and 4.8% per annum during the period 1989-2001. last ten years. The share of oil prod- of energy products to cover produc- In 2001 Iran’s powerplants, in- ucts in the final consumption of en- tion and delivery costs; moreover, a cluding those under the management ergy has declined from 79.8 to 62.7% high tax on energy products is fre- of Ministry of Energy and heavy in- while the natural gas share has in- quently applied in many countries. dustries, generated about 127 TWh creased from 7.1 to 28.3%. As a result of its low prices, popula- of energy. The residential/commercial section and economic growth, the energy 3.3 Export/import of energy tor has been the most important en- intensity in Iran has been constantly Iran is a resource-rich country, ergy-consuming subsector during the increasing during the last few years. with the fifth largest oil reserves in period 1988-1999, accounting for more One of the main environmental the world (about 90 billion barrels) than one-third of the total consump- problems that Iran is currently facing and the second largest gas reserves tion. Energy demand for transport is air pollution, especially in Tehran. (about 23 trillion m3). The amount of amounted to more than one quarter The energy-related carbon emissions crude oil and natural gas production of the total. throughout the country have in- in Iran is shown in Figs 3.2 and 3.3. Iran is one of the few oil produc- creased steadily, corresponding very The revenue for fuel and energy ing and exporting countries in the closely to energy consumption. Ef- exports increased from US$ 11,491 mil- world to carry out programmes for im- forts have been made in recent years lion in 1981 to US$19,339 in 2001. The proving energy efficiency of the vari- to reduce carbon emissions through cost of fuel and energy imports de- ous consuming sectors. The conven- the use of gas in powerplants. creased from US$1000 to US$625 for tional and easy way to improve en- 3.2 Electricity generation the same period. ergy efficiency is to adjust the prices Some of the main data for the Since the mid-1990s, attempts have been made to inject substantial amounts of foreign capital into Iran, in the hope of facilitating oil and gas development. For example, in 1995 and 1998, Iran encouraged international bids based on "buy-back con- tracts" (a type of contract which prom- ises investors cost recovery and certain returns on investment). Fig. 3.2. Crude oil production in Iran (1978-1998). The following factors necessi- tate the injection of foreign capital: • It is a matter of great importance to secure and boost earnings from the oil and gas sector, the largest single revenue source. • Restoring the economy for the Government is one of the top priorities. • In addition to new oil and gas development, Iran has to keep oil flowing from ageing oilfields cur- Fig. 3.3. Natural Gas Production in Iran (1978-1998). rently in operation. This involves 24 SHP NEWS, Summer, 2003 3rd World Water Forum:Country Report

huge investments, beyond the ca- eviewing the previous develop- sources of energy to the Iranian pability of the country to raise R ment plans (the First and Sec- energy mix); and, domestically. ond Five-Year Plans), some of those • expanding research and technol- • The development of new fields demonstrating the policy of sustain- ogy in the oil, gas and electricity and the production maintenance able energy development are as fol- industries. at existing oilfields both require the lows: 4. HYDROPOWER DEVELOP- introduction of advanced tech- • fair sales prices for energy carri- MENT nologies and management skills ers (with respect to the costs); 4.1 Background held by international oil and gas • an appropriate consumption pat- 4.1.1 History and development of companies, to cut production costs tern to avoid high per capita con- hydro plants and improve management effi- sumption of petroleum products, ncompassing the Alborz and ciency. and high and growing energy in- E Zagros mountain ranges, the owever, with the aim of secur- tensity, compared with countries Iranian plateau has a vast potential H ing better investment opportu- with similar energy-economics for hydropower production. Iran has nities in the future, international oil structures; a potential production capacity of 50 companies (most notably the major • importation of appropriate con- TWh/year of hydropower. Studies ones) are showing positive interest suming technologies and equip- show that the Karun catchment area in the terms currently available. Be- ments; has a potential capacity of 30 TWh/ cause American firms are not allowed • governmental entities and affili- year, the Dez catchment area, 9 TWh/ to invest directly in Iran (because of ated industries within the sector; year and the Karkheh catchment area, US economic sanctions), European and, 6 TWh/year. The remaining 5 TWh/ companies such as Total Fina Elf • a protective policy regarding re- year potential is provided by other (France), ENI (Italy) and RD/Shell newable energy production, and catchment areas. Of the total poten- (UK/Netherlands) are acting as ma- incentives for private sector in- tial capacity, only 7300 GWh/year jor investors. Also noteworthy is that vestment in this field. have been put into operation. recent moves to open upstream sec- 3.5.2 Energy sector objectives 4.1.2 First hydropower plants in tors in neighbouring countries such These can be summarized as fol- Iran as Saudi Arabia and Kuwait are en- lows: • Hamedan couraging the Iranians to consider • sustainable economical supply of The first hydro plant in Iran was more flexible terms for future contract energy on a nationwide basis; constructed in Hamedan city in 1929 negotiations. • reducing greenhouse emissions by the German Kakamjin Freisch Com- 3.4 Renewable energy development and damage to the forests and pany. The power generated was programme grasslands; transmitted to Hamedan by 6300 V Results of studies show that Iran • reducing State governance and overhead lines. has a huge potential for renewable launching sectoral privatization; • Karaj (Amir Kabir) energy, especially in the solar sector. • expanding production capacities Iran’s first major hydropower There is great potential for the large- and increasing energy export earn- plant was the Amir Kabir dam scale application of solar energy sys- ings; powerplant. Its construction began tems. By the utilization of solar en- • substitution of the consumption in 1957 and it went into operation in ergy developed over an area of 15,510 of oil products by natural gas, par- 1961. The dam was constructed on 2 km , (less than 1% of Iran’s land), the ticularly in powerplants; the Karaj river in the Alborz moun- country could produce enough hy- • maximum possible utilization of the tain range with a catchment area of drogen to supply its present annual hydropower potential; 764 million km2 and an average an- energy demand and export 6.77 EJ of • energy conservation (through nual surface runoff of 472 million m3. clean energy. Renewable energy de- both supply and demand side man- It is a multipurpose scheme, built for velopment goals for the present plan agement); flood control, the supply of 340 mil- period are shown in Table 3.5. • modification of the energy pricing lion m3 of potable water to Tehran 3.5 Present development plan (2000- system; annually, and the production of 150 2004) for the energy sector • diversification of energy sources GWh/year of hydroelectric power to 3.5.1 Challenges (including coal and renewable support the national grid, particularly SHP NEWS, Summer, 2003 25 3rd World Water Forum:Country Report

Table 3.5 – Renewable Energy Goals in the present Development Plan (2000-2004) of activities of the gas supply sys- Small hydro 54.29 MW tem. Wind farms 91.5 MW Geothermal plants 100 MW • Cultivation of downstream land Solar thermal plants (Parabolic Trough) 250 KW The construction of dams has Solar thermal plant (central receiver) 100 KW led to an increase in the land area Solar water heaters 1500 m2 Fuel cells 209 KW under cultivation in downstream Photovoltaic 450 KW plains. Therefore, a corresponding increase can also be seen in agricul- during peak hours. to 13 in number, which were mostly tural production levels. • Dez dam executed by foreign companies. The 4.1.5 National grid development Located 20 km northeast of feasibility studies of these projects A growth in the demand for Andimeshk city, Dez dam was the first were carried out by companies such power in the country, followed by a large dam to be constructed in the as New York Development and Wa- hasty development of the generation Zagros mountain range. Its purpose ter Resources, Harza, Electroproject, and transmission facilities, have been is to supply 1800 GWh/year of hy- Sir Alexander Gibb, Tractionnel of among the most prominent features droelectric power and to regulate Belgium, Monenco, Acres Interna- of Iran’s power industry in recent water for irrigation purposes. It has a tional and Iran Development and Re- years. The maximum demand, which reservoir with a capacity of 3.5 billion sources. had hardly reached 3500 MW at the m3, a volume almost equal to that of 4.1.4 Environmental and economic beginning of the Islamic Revolution the Tennessee Valley. The amount of aspects of hydro projects (1978), increased to 23 000 MW dur- water stored by the dam would be • Reductions in air pollution ing 2002 (nearly 6.5 times). The insufficient for the annual irrigation of The generation of around 3000 stalled capacity of the powerplants 145 000 ha of the Khuzestan Plain. GWh/year of electricity by a hydro across the country, which had stood The construction work began in 1959 plant such as Dez prevents the emis- at about 7000 MW, reached 29,000 and was completed in 1962. The cost sion of 5.8 million kg of nitrogen ox- MW, with an actual capacity of 26,500 of the dam construction and the in- ides as a result of natural gas con- MW during 2002 (nearly a fourfold stallation of generators and the irri- sumption by thermal powerplants, as increase). gation network was US$ 106 million. well as 1700 million kg of carbon di- The length of 63 kV to 400 kV 4.1.3 Types of project and organi- oxide (greenhouse gas) in a year. The transmission lines has increased from zations involved Rial value of the pollutants arising 16,000 km to 74,000 km, and the length he Iranian power industry came from the operation of thermal of distribution and low voltage lines T into existence almost a century powerplants (substituting gas from 68,000 km to 460,000 km. At ago in 1905, after the first urban power powerplants) is estimated at a mini- present, 100% of the urban popula- generation plant was put into opera- mum of 69 billion Rials/year (if natu- tion and 96% of the rural population tion by the private sector. In the first ral gas is used as the fuel) and a maxi- are supplied by the national grid and six decades of its life, the power in- mum of 238 billion Rials per year enjoy an electric power supply. These dustry was administered by the pri- (when a combination of diesel and figures show that in the years follow- vate sector. With the establishment natural gas is used as fuel). ing the Islamic Revolution, the expan- of the Ministry of Water and Power • Savings in fossil fuels sion of the power grid has exceeded in the 1960s, later changed to the For the production of the same the population growth in the country. Ministry of Energy in 1974, the for- amount of electricity which is gener- mation and development of the Na- ated by a 3000 GWh/year powerplant 4.2 Current status of hydro plants tional Grid was assigned to the Gov- such as Dez dam, a gas plant would 4.2.1 Operational hydro plants ernment due to the needs arising from use around 900 million m3 of natural The current installed capacity of the commissioning of the large hy- gas. The construction of such a hy- hydropower plants is around 2000 dropower plants of Dez and Amir dro plant not only replaces the need MW, and their average energy pro- Kabir. for the supply of this amount of natu- duction is 7300 GWh/year. The hydroelectric projects ral gas by the national gas supply 4.2.2 Hydro plants under construc- implemented in the past were limited network, but also reduces the level tion The main features of the hydro- 26 SHP NEWS, Summer, 2003 3rd World Water Forum:Country Report power plants under construction are eration (JBIC), for example, granted cently joined forces under the man- given in Table 4.1. US$387 million to Iran from 1993 to 2002 agement of Iran Water Resources De- 4.2.3 Role of small hydro plants for the construction of the Masjed velopment Organization. The respon- As the production cost of small Soleiman dam and hydropower plant sibility for small hydro plants has been hydro plants is lower than that of with a capacity of 1000 MW. Also, The taken from the Ministry of Agricultural other powerplants, and as they gen- World Bank financed the construction Jihad and given to Iran Water and erate employment opportunities in of Dez dam in the 1960s. With the re- Power Development Organization, rural areas of the country, the imple- sumption of loan payments to Iran by which is run under the auspices of the mentation of such plants is one of The World Bank in 2000, there is hope Deputy Minister for Water Affairs in the power generation measures that the Bank will finance more hydro- the Ministry of Energy. which have been fostered consider- electric projects. 4.2.7 Refurbishment activities ably by the Government. The The resources required for the The repair and refurbishment of Government’s support has led to the development of hydro plants include powerplants have been carried out by construction of eight hydro plants in public revenue, the Ministry of Iranian experts and technicians in ac- villages across the country. Nine Energy’s internal resources, participa- cordance with international standards. other plants are under construction, tion bonds, bank loans, and JBIC’s fi- Of the eight units at the Dez hydro and another 300 are being studied. nancing and loan payment. The Ira- plant, four have undergone basic re- One of the major goals of building nian Government’s next step involves pairs by powerplant personnel and a small hydro plants is to supply power achieving special foreign financial ar- repair company. Of the four 250 MW to irrigation wells, which will provide rangements, such as a BOT (build, units at the Shahid Abbaspour several economic advantages and operate and transfer) contract for the powerplant, two have undergone ba- lead to an economic boom in the agri- Paresar powerplant. Nevertheless, be- sic repairs and the other two are listed cultural sector. cause of the large volume of required on the repair schedule. 4.2.4 Major companies involved in investment and the long lead time of As far as the renovation and re- hydro plant construction the implementation phase, the use of pair of dams is concerned, the regional Iran Water and Power Resources Government loans and finance is still water authorities and the Water Re- Development Company (IWPC), af- recommended for hydropower plants. sources Management Organization of filiated to the Ministry of Energy, is 4.2.6 Current changes in the hydro the Ministry of Energy manage the in charge of the development of hy- sector dam monitoring as well as surveying dro plants, including large and me- Up to 2001, the Ministry of En- and micro-geodetic work. dium-scale projects. There are 27 ma- ergy was responsible for the devel- 4.2.8 Environmental management: jor Iranian contracting and consult- opment and operation of large hydro past experience and future plans ing companies involved in the con- plants, and the Ministry of Agricul- Currently, studies are being construction of hydropower plants (with tural Jihad for small (less than 2 MW) ducted on the environmental assess- expertise in the design and engineer- plants. In the Ministry of Energy it- ment of hydroelectric projects. As- ing of dams, tunnels and powerplants, self, the development of large hydro sessment reports on the environmen- and manufacturing of plant and equip- plants has mainly been the responsi- tal impacts of the Karkheh and ment). A number of other foreign bility of Iran Water and Power Re- Masjed Soleiman projects have been engineeers and manufacturers are sources Development Company prepared and submitted to the Envi- working in the country. (IWPC). The Khuzestan Water & ronmental Protection Organization. 4.2.5 Financing methods Power Authority (KWPA) has been Comprehensive plans are being pre- At present, hydroelectric plants in charge of operating the large pared which conform to environmen- are 100% owned by the public sector. plants, which are mostly located in tal standards. The preparation of a In the past, efforts were made to in- Khuzestan Province. Regional water management plan for the reduction crease the plants’ capacities using and power companies have been re- of negative impacts of dam construc- public funds. Now, however, in view sponsible for the operation of other tion projects in the long term is the of the heavy investment costs in- powerplants. responsibility of the Ministry of En- volved in this sector, efforts are be- In view of the significance of hy- ergy. Plant and animal species, and ing made to use foreign credits. The dropower plants in water resources even human communities in the area Japan Bank for International Coop- management, IWPC and KWPA re- of a reservoir may be adversely af- SHP NEWS, Summer, 2003 27 3rd World Water Forum:Country Report fected, to a certain extent, by dam support the hydro projects because 4.3 Future status of hydro projects construction. However, careful plan- of the resulting increase in the area 4.3.1 Demand prediction ning provides the possibility for new of downstream land that can be culti- The annual growth in electric communities to settle in the area and vated, and the supply of regulated power consumption is predicted to special measures can be adopted for water during the low water seasons. be around 1200 to 1500 MW. The the protection of plant and animal Among the major reasons behind mean annual consumption growth for species. The increase in the humidity public acceptance of such projects are the short- and medium-term plans is in the area can help to develop the the flood control role of Dez, Karkheh predicted to be 6% and 5%, respec- area’s flora, and also increase human and Karun dams in the recent years tively. Demand was 24,000 MW in access to water, which is regarded as and the supply of water during 2002, and is expected to increase to a vital and pivotal factor in economic droughts to downstream farmers. 28,000 MW by 2005, to 34,000 MW and social development. 4.2.10 Major issues and challenges by 2010, and to 49,000 MW by 2020. 4.2.9 Public opinion of hydro The major challenges encoun- 4.3.2 Potential in demand manage- projects tered in realtion to the development ment As the power generated by dams and operation of hydropower plants The power consumption man- and hydropower plants is supplied in Iran are: agement activities are divided into to the national grid, the social effects • restricted financial resources for in- two main groups: (particularly on domestic consumers) vestment in new plants; • measures which mainly cause a re- and economic effects (on the indus- • relatively long construction duction in power consumption; trial and agricultural sectors) of these phases, which discourage foreign and, projects cannot be examined indepen- investors from investing in hydro • measures which mainly cause a dently. However, undoubtedly, the projects on a BOT basis; reduction in consumption peaks. implementation of such projects will • necessity for watershed manage- As a result, coordination with in- serve the purposes of sustainable ment, to reduce sedimentation in dustries for load shifting and regu- development (improvement of the reservoirs and increase their use- lating the working hours of other busi- quality of life, development of the in- ful life; nesses has been prioritized in con- dustrial, agricultural, and other sec- • the need to maximize the use of do- nection with demand management. tors). These projects are very mestic potential in the design and 4.3.3 Productivity development favourably received, because of their construction of projects, to stimu- Among the most important Gov- role in job creation in various fields late job creation; ernment policies to increase produc- such as the cement and metal indus- • large subsidies allocated within tivity, reducing the construction tries, transport services, construction the energy sector, particularly in costs of hydroelectric generation and materials production and supply, ma- the oil and gas sectors, which in the following achievements can be chinery and spare parts production certain cases justifies the use of mentioned: and repair, and powerplant equipment alternative powerplants, especially • enhancing the country’s engineer- production. Another advantage is gas plants, instead of hydro- ing capabilities for the construc- the employment of local manpower power; and, tion of hydro powerplants; during the construction and opera- • greater attention needs to be given • benefiting from past experiences tion phases. Estimates show that dur- to environmental issues, and the in the erection of new plants; ing the implementation of some hy- environmental advantages of hy- • reducing the implementation time dro projects, about 5000 jobs have dropower plants must be stressed of projects; been created. Farmers also strongly in their economic assessment. • purchasing advanced equipment;

Table 4.1 – Hydro plants under constructions • selecting construction sites which Catchment Potential In Operation Under Const. Under Study involve lower construction costs; Cap’y Energy Cap’y Energy Cap’y Energy Cap’y Energy and, (MW) (TWh/year) (MW) (TWh/year) (MW) (TWh/year) (MW) (TWh/year) Karun 15,000 30 1,000 4 7,000 14,2 6,000 8 • paying attention to secondary Dez 5,250 9 520 1,7 0 0 4,000 5,2 benefits and including the revenue Karkheh 3,165 6 0 0 879 1,8 2,286 3,3 from them in the total benefits of Other 1,036 5 480 1,1 201 0,4 358 0,7 the projects (flood control, irriga- Total 24,451 50 2000 6,8 8,080 16,4 12,644 17,2 tion and potable water supply, con- 28 SHP NEWS, Summer, 2003 3rd World Water Forum:Country Report

Table 4.2 – Hydropower plants under study a number of secondary benefits such No. Project (dam Province River Type of Height of Reservoir Installed Mean and plant) dam dam (m) capacity capacity annual as water supply and flood control in ( million m3) (MW) energy (GWh) addition to the primary goal of en- 1 Karun II Khuzestan Karun CG 125 206 600 1950 ergy production. 2 Khersan I Chahar mahal Khersan TGA 170 263 391 1218 4.3.6 Incentives for investment 3 Khersan II Chahar mahal Khersan RD 120 2304 580 1689 4 Khersan III Chahar mahal Khersan TCA 175 778 300 968 ersuading the private sector to 5 Bazoft Chahar mahal Bazoft CA 160 262 163 487 P invest and also attracting for- 6 Karun Chahar mahal Karun RD 173 1176 452 826 eign investment are also among the 7 Sazbon Ilam Seymareh CGA 152 1609 500 797 8 Paalam Ilam Karkheh CGA 156 3596 800 1278 goals of the Ministry of Energy. The 9 Kuran Buzan Lorestan Seymareh CFRD 134 2338 201 550 high volume of investment required 10 Tang-e- Chahar mahal Kashkan RCC 128 1019 166 500 for the development of the electrical Mashureh 11 Roudbar Lorestan Rudbar RCC 169 285 400 1050 industry has made dependence on Lorestan Lorestan OR domestic resources impossible. 12 Bakhtiari Lorestan Bakhtiari CA 260 4845 1220 2957 Following the Cabinet’s approval 13 Lyro Lorestan Zalaki CA 210 520 470 1045 of the administrative regulations of the 14 Zalaki Lorestan Zalaki CA 210 2517 466 1333 15 Sadasht West Azarbaijan Glass CRD 126 1050 418 734 Foreign Investment Encouragement 16 Shivashan West Azarbaijan Glass RD 121 588 155 273 and Support Law, and the removal of 17 Siah Bisheh Mazandaran Chalus RD 106 – 1000 1250 obstacles in the way of foreign investment in the country, the use of this struction of recreational areas, de- hydroelectric power to national elec- investment for the development of velopment of the tourism indus- tricity production is about 6%. The more production facilities will be pos- try, breeding of fish and other Ministry of Energy is trying to in- sible. Also, the Ministry of Energy will aquatic animals, and so on). crease this share to 19% within the issue licences to the private sector for 4.3.4 Potential for new projects term of the Third and Fourth Eco- the construction of powerplants and In the mid-1990s, the develop- nomic Development Plans (up to 2005 will guarantee to purchase the power. ment of the country’s hydroelectric and 2010, respectively). Therefore, Pursuant to the Third Plan Law, the potential was given top priority, with the Ministry of Energy is seeking to surplus electricity generated by units, the construction of a number of new increase the capacity of the which produce electricity for their own powerplants. To this end, based on powerplants within the next decade requirements, will be purchased at the plans made, the implementation by 20,000 MW to 53,000 MW (see guaranteed prices. The Ministry of of new hydro plants, with a total ca- Table 4.4). The increase in the share Energy can offer its powerplants, up pacity of 8000 MW of power was of hydroelectric powerplants has to 10% of the national power genera- launched. Studies are also to be done special importance in terms of reduction capacity, for sale to the non-pub- for the production of a further 13,000 ing environmental damage (by lic sector at spot prices, demanding MW (Tables 4.2 and 4.3). avoided fossil-fuel based generation), 40% of the price in cash and the rest in 4.3.5 General direction of develop- lower operational costs, and longer 5-year installments. ment life of the facilities. For an arid and 4.3.7 Future directions in the elec- At present, the contribution of semi-arid country like Iran, the con- tricity sector Table 4.3 – Under construction hydroelectric plants struction of hydro plants can lead to No. Project (Dam Province River Type of dam Height of Reservoir Installed Mean Date of and Power dam (m) capacity capacity annual commercial plant) (million m3) (MW) energy (GWh) operation 1 Masjed-e- Khuzestan Karun CRD 177 230 2000 3700 2002-2005 Soleiman 2 KhersanIII Khuzestan Karun TCA 205 2750 2000 4137 2005 3 Karun I Khuzestan Karun TCA 200 3139 1000 4000 2003 (Development) 4 Karun IV Chahar Karun TCA 230 2190 1000 2107 2006 mahal-& Bakhtiari 5 Gotvand Khuzestan Karun CRD 180 4500 1000 4500 2009 6 Karkheh Khuzestan Karkheh CED 127 7300 400 934 2002-2003 7 Seymareh Ilam Seymareh TCA 180 3200 480 850 2007 SHP NEWS, Summer, 2003 29 3rd World Water Forum:Country Report

Table 4.4 – Future combination of electrical potential in Iran Item Type of 2005 2010 2020 plant Installed Energy Installed capacity Energy production Installed Energy capacity production (GWh) (GWh) capacity production (GWh) MW % MW % MW % MW % MW % MW % 1 Steam 12,500 40,0 18,800 35,5 19,000 22,1 2 Combined 5,700 15,0 13,800 26 35,000 40,7 cycle 3 Gas turbine 8,500 22,4 143,000 86.3 9,000 17 190,000 86 15,000 18,0 324,000 90 4 Diesel 400 1,1 400 1 400 0,5 generator 5 Nuclear 1,000 2,6 6,200 3,7 1,000 2 6,300 3 1,000 1,2 6,300 2 6 Hydropower 7,200 18,9 16,500 10 10,000 19 24,500 11 15,000 17,5 29,000 8 Total 33,000 100 165,700 180 53,000 100 220,800 100 85,900 226 359,300 100

The most important policies of sis on the electric power sector. creasing energy consumption, it is the electrical industry for the coming • Codifying the environmental stan- predicted that Iran will become an years can be summarized as follows: dards of the energy sector in gen- importer of oil products in the long • Restructuring and supporting the eral, and of powerplant activities term. Therefore, access to the tech- private sector’s entry into the elec- in particular. nology of new renewables to be used trical industry. 5. CONCLUSION in appropriate economic conditions, • Reducing the State-run companies Iran is a dry country with limited could serve as an appropriate solu- involved in the electrical industry water resources. At the time being, the tion to fossil fuel problems. Hydro- and assigning the private sector country’s access to vast and inexpen- electric plants are environment the same work. sive oil and gas resources, used in ther- friendly plants and could be used as • Improving the load coefficient by mal powerplants, has overshadowed multi-purpose facilities to serve such controlling the increase in power the development of hydro plants. It other goals as flood control and irri- demand and optimization of power should not be forgotten that these oil gation water supply. The availability consumption. and gas resources would be gradually of low cost and accessible fossil en- • Offering reasonable power supply depleted. On the contrary, energy pro- ergy resources in Iran has been among prices, moving towards the cost duction based on hydropower and the major reasons behind the limited price, and striking a sustainable other renewable resources can make a attention given to hydroelectric en- balance in the power economy. reliable investment for future genera- ergy in the past. • Optimizing the power supply, with tions. Therefore, a broad-based plan All in all, the issues of environ- emphasis on reducing transmis- for hydropower development in Iran mental pollution and the finite re- sion losses, reducing distribution seems to be essential. source of fossil fuels contrast with and internal consumption by To this end, studies have been the many advantages of hydroelec- powerplants, and enhancing the conducted for a comprehensive hy- tric powerplants. Thus, the renewable efficiency and performance of dro plan for the country, based on a nature and abundance of hydroelec- powerplants. five-year survey plan in the various tric energy in the country have at- • Continuing the policy of replacing areas related to the country’s river tracted increased attention to this natural gas in powerplants, study- basins. Taking pumpedstorage plants form of energy. This trend, which ing the possibility of using other into account, a total of 18,000 MW started in the First Economic and So- fuels such as coal in power gen- has been predicted in the survey plan. cial Development Plan, will continue eration, and conservation of en- After completion of the survey stud- to progress, as attested by the num- ergy through the simultaneous ies, the best, most economical and ber of projects under way and those production of electricity and heat. most favourable technical criteria will being studied. • Developing the application of new be adopted, and will be implemented forms of energy, with emphasis on following adequate financing in the Dr. R. ArdakanianDeputy Minister localizing the technologies for pro- Third Plan and the attraction of vari- for Water Affairs, Ministry of Energy duction. ous financial resources. Fax: +98 21 880 1555 • Compiling a comprehensive plan With the limited volume of oil Email: [email protected] for the energy sector, with empha- and gas reserves and the ever in- 30 SHP NEWS, Summer, 2003 Events

Ministerial Declaration recognizes the role of hydropower

ater & Energy was high on the an environmentally sustainable and Association (IHA) presented three W agenda at the recent Third socially equitable manner.” documents at the Summit on Sustain- World Water Forum in Japan. On the able Use of Water for Energy in Kyoto: opening day of the Forum in Kyoto, The entire Kyoto Ministerial Decla- - A volume of Country Reports, re- the First International Summit on Sus- ration is available at the following viewing the past, present and future tainable Use of Water for Energy took URL: roles of water for energy in 16 coun- place. The Summit reviewed the rela- http://www.world.water-forum3.com/ tries (representing a cross-section of tionships between water and energy, jp/mc/md_final.pdf countries at different stages of de- with a focus on hydropower, and was Specific reference to hydro- velopment); organized to follow-up the recommen- power in the Kyoto Declaration fol- - A comprehensive review of the dations of the World Summit on Sus- lows the recommendations given in Role of Hydropower in Sustainable tainable Development (WSSD, the WSSD Implementation Plan Development, with reference to ma- Johannesburg, 2002). Presentations (Item 19e) of Johannesburg last year, jor challenges such as freshwater covering integration of energy tech- which call for increased use of all management, global warming and nologies, social/environmental good renewables, hydropower included. poverty alleviation. practice, investment and policy were Both the Kyoto Declaration and the - Draft Sustainability Guidelines, covered in the programme, which in- Johannesburg Implementation Plan presenting advice for IHA members cluded contributions by government are seen as essential mandates for involved in the implementation and representatives from Brazil, China, the future role of hydropower. These management of hydropower. Prior to Egypt, Iran, Italy, Japan, Nepal, and significant statements support the Kyoto, an extended group of organi- Norway, together with United Na- following: zations, including experts on environ- tions, World Bank, utility, industry, - Hydropower is renewable and mental and social aspects, were in- education, research and NGO repre- clean. vited to comment on the draft. sentatives. - Renewables policy/legislation All the above documents are The World Water Forum (16-23 should include hydropower of all available from the IHA Central Office March 2003) comprised 351 sessions scales. (see address given below). in total, and these were convened in - Attempts to define hydropower A major outcome of the Summit Kyoto, Shiga and Osaka. The entire as an “old” or “new” renewable was the commitment by IHA to pro- Forum hosted 24,000 participants. are irrelevant. mote hydropower-specific guidelines The Kyoto Ministerial Confer- - Hydropower’s implementation for planning, development and opera- ence on 22/23 March formed the con- (including refurbishment/upgrad- tion. The commitment was acknowl- clusion of the Forum. More than 170 ing) should be increased. edged by several government repre- countries were represented by Minis- - According to the circumstances, sentatives and civil society groups. ters and Heads of Delegation. The there is a role for both large and For example, the Dr Ute Collier of the Ministerial Conference culminated in small schemes. Worldwide Fund for Nature recog- the ratification of a formal Declaration, - Environmental awareness and nized the Sustainability Guidelines as which includes specific reference to sensitivity to locally affected a good step forwards and gratefully hydropower: people are key aspects. acknowledged IHA’s invitation to re- (Item 15) “We recognize the role - The sector must continue to view the draft presented in Kyoto. of hydropower as one of the renew- evaluate and promote good prac- The Water & Energy theme for able and clean energy sources, and tice. the Third World Water Forum was co- that its potential should be realized in The International Hydropower SHP NEWS, Summer, 2003 31 Events ordinated by IHA and included ses- sented as an official input to the Min- Further information concerning sions independently organized by isterial Conference, can be found at IHA can be obtained from: Interna- the International Rivers Network, either of the following URLs: tional Hydropower Association Suite Friends of the Earth (Japan) and the 55, Westmead House 123 Westmead New Energy Foundation (Japan). The - www.hydropower.org Road Sutton, Surrey, SM1 4JH United Summit and closing session for the - www.water4energy.net Kingdom theme were convened by IHA. The - http://ap.world.water- Fax: +44 20 8770 1744 one-page Thematic Statement for forum3.com/themeWwf/en/ Email: [email protected] Water & Energy, which was pre- themeShow.do?id=10

HANOI, Vietnam (HCI)- WASHINGTON (HCI)-A WASHINGTON (HCI)- Vietnam’s Prime Minister Phan federal court declared Alabama American Rivers Inc. targeted Van Khai has approved 62 power Power must obtain state certifi- hydro operators on three of its top plants to be developed by 2011 by cation under Clean Water Act 10 “most endangered” rivers of government utility Electricity of Section 401 before it can replace 2003. The group accused: Vietnam and other developers. turbine-generators that would in- PacifiCorp’s 151-MW Klamath Forty-four of the plants are hydro- crease the rate of water dis- River project of harming the Kla- power projects totaling 5,160 MW. charged from 154.2-MW Martin math in Oregon; Idaho Power’s EVN is to develop 20 hydro plants Dam into Tallapoosa River. The 1,166.5-MW Hells Canyon project totaling 4,159 MW, while other court said releasing more water of harming the Snake River in entities are to develop 24 hydro could have negative water quality Idaho; and Alabama Power’sd plants totaling 1,001 MW, effects, such as low dissolved oxy- 135-MW R.L. Harris Dam of (Source: HydroWorld Alert) gen, that require 401 review. harming the Tallapoosa River in (Source: Hydrowire) Alabama. (Source: Hydrowire) WASHINGTON (HCI)- KUALA LUMPUR, Ma- The full U.S. House passed a na- laysia (HCI)-Alstom has won a BEIJING (HCI)-Builders tional energy policy bill April 11 US$120 million contract to supply of 18,200 MW Three Gorges that contains hydro licensing re- electro-mechanical equipment for Dam blocked China’s Yangtze form language. The Senate En- the 2,400-MW Bakun Dam River June 1, starting to fill the res- ergy Committee endorsed similar project on Malaysia’s Sarawak ervoir of the world’s biggest hy- language April 8. The measures Island. Alstom is to supply four droelectric project. Nineteen of 22 would compel federal resource turbine-generators and other gates at Yichang closed to create agencies to adopt a hydro license equipment. Developer Sarawak a 600-kilometer reservoir. Two of applicant’s alternative license con- Hidro previously awarded 26 units are to begin generating in dition if it provides no less protec- Bakun’s civil works constract to August. Three Gorges is China’s tion than the agency’s own pro- a consortium of Malaysian and biggest engineering project since posed condition. Chinese firms headed by Sime the 2,000-year-old Great Wall of (Source: Hydrowire) Darby of Malaysia. China. (Source: HydroWorld Alert) (Source :HydroWorld Alert)

32 SHP NEWS, Summer, 2003