Feasibility and environmental appraisal of a small hydro-power plant. University of Piraeus Department of Business Administration European Masters in Business Administration(MBA) -Total QualityManagement (TQM) Thesis: “Feasibility and environmental appraisal of a small hydro-power plant.” By Vougioukli Adamantia Zoi Civil engineer, Dipl. AUTH Supervisor: Assoc. Prof. Dr. Dimitrios A. Georgakellos Piraeus, 2013 1 Feasibility and environmental appraisal of a small hydro-power plant. I would like to thank Mr Georgakellos for his valuable help. Without his advice and material support it would not have been possible to complete this task. I thank him sincerely for our perfect collaboration and his contribution to the completion of my thesis. I dedicate this thesis to my family and friends who were beside me and supported me throughout these years!!! 2 Feasibility and environmental appraisal of a small hydro-power plant. INDEX Chapter 1 - Summary of the the project ........................................................................... 10 1.1 Energy and HP .................................................................................................. 10 1.2 Structure of the work ......................................................................................... 11 Chapter 2 -Aim, description and significance of the project ........................................... 13 Chapter 3- Analysis of the market for renewable energy sources and Marketing ........... 15 3.1 - Introductory data for Renewable Energy Sources ............................................... 15 3.2 Types of renewable energy sources ....................................................................... 16 3.2.1 Wind Energy .................................................................................................... 16 3.2.2 Small Hydroelectric Projects ........................................................................... 17 3.2.3 Biomass ........................................................................................................... 18 3.2.4 Solar Energy .................................................................................................... 19 3.2.5 Biofuel ............................................................................................................. 20 3.2.6 Photovoltaics ................................................................................................... 20 3.3 Advantages of renewable energy sources .............................................................. 20 The main advantages of RES are: ................................................................................ 20 3.4 Μarket analysis of electricity from renewable energy sources .............................. 21 3.5 Production and consumption of electricity-Participation rate of RES in Greece ... 22 3.6 Hydropower (<10MW) .......................................................................................... 24 3.6.1 The contribution of small hydro power stations to the electricity generation in Greece ....................................................................................................................... 25 3.6.2 Advantages of hydropower .............................................................................. 27 3.7 Operation mode ...................................................................................................... 27 3.8 Operating entities of electricity market in Greece ................................................. 28 3.8.1 Regulatory Authority for Energy (RAE) ......................................................... 28 3.8.2 Independent Power Transmission Operator (IPTO or Independent Transmission Operators for Electricity) S.A.- The functioning of the electricity market ( LAGIE SA) ................................................................................................ 30 3.8.3 CRES (Centre for renewable energy sources and savings) ............................. 31 3.9 RES in Greece ........................................................................................................ 33 3.10 State for authorization evolution of RES - Ability power absorbed by the existing network ........................................................................................................... 35 3.11 Sales value of electricity from RES ..................................................................... 39 3.12 Market Shares of Companies in electricity production from RES ....................... 41 3 Feasibility and environmental appraisal of a small hydro-power plant. 3.13 Conclusions .......................................................................................................... 42 3.14 Legal framework for the production of electricity from RES .............................. 46 3.14.1 Legal framework at an International Level ................................................... 46 3.14.2 Legislative framework at European Level .................................................... 47 3.14.3 Legislative framework at national level ........................................................ 47 3.15 License to produce electricity from RES or Combined Electricity and Heat with High Performance ........................................................................................................ 53 3.16 Procedure for licencing ....................................................................................... 54 3.17 Hydro plant that we study .................................................................................... 55 3.18 SWOT analysis ..................................................................................................... 58 3.17.1 SWOT Analysis ............................................................................................. 58 Chapter 4 - Raw materials and other supplies ................................................................. 60 4.1 Characteristics of raw materials and other supplies ............................................... 60 4.1.1 Raw materials ................................................................................................. 60 4.1.2 Supplies of a hydropower plant ....................................................................... 60 4.2 Characteristics of raw materials and supplies ........................................................ 60 4.3 Availability of raw materials and supplier selection .............................................. 61 4.3.1 Availability of materials .................................................................................. 61 4.3.2 Minimizing cost ............................................................................................... 61 4.3.3 Selection and evaluation of suppliers ............................................................ 62 4.3.4 Cost of raw materials and other supplies ......................................................... 62 Chapter 5 - Engineering and technology ......................................................................... 64 5.1 Program and production capacity of the plant ....................................................... 64 5.2 Technology selection criteria ................................................................................. 64 5.3 Supplier selection ................................................................................................... 65 5.4 Required technology .............................................................................................. 65 5.4.1 Description of the main components of a hydroelectric plant ......................... 65 5.5 Technical description of civil engineering ............................................................. 67 5.6 Costing of civil engineering ................................................................................... 72 5.7 Electromechanical equipment ................................................................................ 73 5.7.1 Overview - Types of hydroturbines ................................................................. 73 5.8 Costing of Electromechanical equipment .............................................................. 78 5.9 Ancillary equipment ............................................................................................... 80 5.10 Costing of ancillary equipment ............................................................................ 81 4 Feasibility and environmental appraisal of a small hydro-power plant. 5.11 Maintenance ......................................................................................................... 81 5.12 Total cost Estimation ............................................................................................ 82 Chapter 6- Organization of the establishment and general expenses .............................. 84 6.1Introduction ............................................................................................................. 84 6.2 Business management and organization ................................................................ 84 6.3 General expenses .................................................................................................... 86 Chapter 7- Human resources ............................................................................................ 89 7.1Introduction ............................................................................................................. 89 7.2 Organizational chart and job descriptions .............................................................