SMART – Strategies to Promote Small Scale Hydro Electricity Production in Europe Deliverable D3.1 Policies, Methodologies & Tools to Improve the Exploitation of Small Hydro Power Plants Grant Agreement EIE/07/064/SI2.466791 -SMART Policies, Methodologies & Tools to Improve the Exploitation of SHP DISCLAIMER The project SMART (Strategies to promote small scale hydro electricity production in Europe) is supported by the “Intelligent Energy – Europe” Programme (Contract N°: EIE-07-064). The sole responsibility for the content of this report lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein. AUTHO RS: Province of Cremona (Italy) Marco Antoniazzi Province of Attica (Greece) Lilly Christoforidou Thaya County (Austria) Otmar Schlager Thomas Waldhans NTNU (Norway) Anna Carmen Masoliver Verdaguer Sølvi Eide Idun Schjerven Østgård Ole Gunnar Dahlhaug FSBUZ (Croatia) Zvonimir Guzović Branimir Matijašević Karlovac County (Croatia) Marinko Maradin ERSE (Italy) Julio Alterach Giuseppe Stella Stefano Maran Maximo Peviani Policies, Methodologies & Tools to Improve the Exploitation of SHP Table of contents 1 Introduction 2 Policies, Methodologies and Best Practice 2.1 Province of Cremona, Italy Summary 2.1.1 The Development Pa ct 2.1.1.2 Definition 2.1.1.2 The course of the project 2.1.1.3 Means of implementation 2.1.1.4 The Pact and the young 2.1.2 The Environmental En e rg y Plan 2.1.2.1 Introduction 2.1.2.2 PEAP structure 2.1.2.2.1 Part One: General Fact-Finding Framework 2.1.2.2.2 Part Two – Analysis of the energy system: 2.1.2.2 .3 Part Three – Assessment of feasibility and effectiveness of actions 2.1.2.2.4 Part Four –Target scenarios 2.1.2.2.5 Part Five – Management tools 2.1.2.3 Meetings and works tha t led to the drawing up of the energy plan 2.1.2.4 Actions un dert aken 2.1.2.4.1 A) Mini Hydro Power 2.1.2.4.2 B) Energy Exploitation of Biomasses And Biogas 2.1.2.4.3 C) Energy Saving in Public and Private Buildings 2.1.2.4.4 D) Promotion of Photovoltaic Power 2.1.2.4.5 E) Setting up a Provincial Office for the Public 2.1.2.4.6 F) Conferences 2.1.2.5 2009 Results and Updates 2.1.3 New Administrative Methodology 2.2 Greece Summary 2.2.1 Best tools for a good planning of the te rr itory 2.2.2 The Regional/Local Energy Plan 2.2.3 The Regional/ Local Development Strategy 2.2.4 Public/Private In te rests 2.2.5 References 2.3 Thaya county (Austria) Summary 2.3.1 Best tools for a good planning of the territory 2.3.1.1 The Masterplan SHP for the federal land Lower Austria 2009 Policies, Methodologies & Tools to Improve the Exploitation of SHP 2.3.1.2 The strategy for the “Energy And Climate Model Region Waldviertel” 2.3.1.3 Regional energy plans for the micro regions in Waldviertel 2.3.1.4 Local Energy Plans for municipalities 2.3.1.5 Water data register Lower Austria – important source of information 2.3.2 Implementation of private & public join invest m ent -to promote the interest to invest in small scale hydro electrical production 2.3.2.1 WEB AG - The regional participation model for renewable energy 2.3.2.2 The actual planning for a regional energy contracting model 2.3.2.3 Regional Energy Round Table in Waldviertel 3 Guidelines and Tools for a Technical and Economic Evaluation of SHP construction 3.1 NTNU, Norway Summary 3.1.1 Choice of turbine, pipes and valves 3.1.1.1 Annual mean flow rate in a rive r/stream 3.1.1.2 Average flow capacity 3.1.1.3 Pressure head 3.1.1.4 Power 3.1.1.5 Duration curve and serv ice life 3.1.1.6 Energy production 3.1.1.7 Estimation of income on the basis of energy production 3.1.1.8 Description and area of use for the different turbine types 3.1.1.9 Choice of turb in e type 3.1.1.10 Penstock 3.1.1.11 Design pressure for pipe 3.1.1.12 Choice of pipe type 3.1.1.13 Choice of valves 3.1.1.14 Intake to penstock 3.1.2 Registration and Identification of Licensees and Interested Parties 3.1.2.1 Establishing an overview over the licensees in question 3.1.2.2 Informing the population about the possibilities in exploitation of the resources 3.1.3 New Technology – Description and Possibilities 3.1.3.1 The development of turbine te c hnology 3.1.3.2 The development of pipes 3.1.3.3 The development of generator technology 3.1.3.4 The development of monitoring techn o logy 3.1.3.5 Remote control of the power plant 3.1.4 Analysis of resources in the lateral watercourses 3.1.4.1 Map based survey of lateral watercourses that are theoretically viable – stage 1 Policies, Methodologies & Tools to Improve the Exploitation of SHP 3.1.4.1.1 Restrictions for hydropower development in protected watercourses 3.1.4.1.2 Estimation method 3.1.4.2 Computing the theoretical/economical available potential considering mini and micro po wer plants – st age 2 3.1.4.2.1 Head 3.1.4.2.2 Catchment area 3.1.4.2.3 Averaged flow capacity 3.1.4.2.4 Service life and duration curve 3.1.4.2.5 Effect, energy production, pipe diameter, and design pressure for pipes. 3.1.4.2.6 The costs of building and construction 3.1.4.2.7 Costs of mechanical works 3.1.4.2.8 Cost of electrical work 3.1.4.2.9 The cost of engineering and project management 3.1.4.2.10 Annual costs 3.1.4.2.11 Economic life 3.1.4.2.12 Financing strategy 3.1.4.2.13 Revenue assessment –value of energy based upon market analysis or demand capability 3.1.4.2.14 Financial analysis and c riteria for decision 3.1.5 SHP program tools for Cost/ benefit anal ysis 3.1.5.1 SHP programs, methodology 3.1.5.1.1 Cost of the small hydro power plants components 3.1.5.1.2 Variables of the progra ms 3.1.5.2 SHP Global view, user manual 3.1.5.3 SHP Individual view: cost of each componen t, user manual 3.1.5.4 SHP op ti misation program, user manual 3.1.6 References 3.2 FBUZ and Karlovac County, Croatia Summary 3.2.1 Introduction to Base Costs Estimate and Financial Analysis 3.2.2. Capital (investment) costs 3.2.2.1. Costs of civil works 3.2.2.2. Costs of hydro-mechanical and electro-mechanical equipment 3.2.2.3. Cost of grid connection (power transmission line) 3.2.2.4. Other indirect costs 3.2.3. Annual costs 3.2.3.1. Depreciation of equipment 3.2.3.2. Operation and Maintenance (O&M) costs 3.2.3.3. Replacement and ren ov ation costs 3.2.3.4. Pumping costs 3.2.4. Income and benefits 3.2.5. Financial analysis 3.2.5.1. Financial mathematics Policies, Methodologies & Tools to Improve the Exploitation of SHP 3.2.5.2. Methods of economic evaluation 3.2.5.3. Tarifs and inc en tives 3.2.5.4. Revenue assessment - a nalysis of the financial behaviour of a small hydro power plant 3.2.5.5. Financing strategy 3.2.5.6. Cash flow analysis and implementation schedule 3.2.5.7. Unit cost of energy 3.2.5.8. Sensitivity and risk analysis 3.2.5.9. Economic life 3.2.5.10. Criteria for decision 3.2.6 Implementation and development of a sm all hydro power plant 3.2.6.1. Contract packaging models 3.2.6.2. Contract delivery models 3.2.6.3. Financing sch em es 3.2.7 DESCRIPTION of RETScreen® users’ software 3.2.7.1 Hydrology 3.2.7.1.1 Flow-duration curve 3.2.7.1.2 Available flow 3.2.7.1.3 Firm flow 3.2.7.2 Load 3.2.7.2.1 Energy dema n d 3.2.7.2.2 Average load factor 3.2.7.3 Energy Production 3.2.7.3.1 Turbine efficiency curve 3.2.7.3.2 Power available as a function of flow 3.2.7.3.3 Plant capacity 3.2.7.3.4 Power-duration curve 3.2.7.3.5 Renewable energy available 3.2.7.3.6 Renewable energy delivered - central-grid 3.2.7.3.7 Renewable energy delivered - isolated-grid and off-grid 3.2.7.3.8 Small hydro plant capacity factor 3.2.7.3.9 Exce ss renewable energy available 3.2.7.4 Project Costing 3.2.7.5 Validation 3.2.7.5.1 Turbine efficiency 3.2.7.5 .2 Plant capacity and annual renewable energy delivered 3.2.7.5.3 Project costs 3.2.8. References APPENDIX A: Example: The investment is not externally financed APPENDIX B: Example: The investment is externally finan c ed APPENDIX C: FINANCIAL ANALYSIS APPENDIX D: TURBINE EFFICIENCY FORMULAE APPENDIX E: FORMULAE FOR FORMULA COSTING METHOD 3.3 ERSE, Italy Policies, Methodologies & Tools to Improve the Exploitation of SHP Summary 3.3.1 SHP informatic tools 3.3.1.1 Vapidro-Aste 3.3.1.1.1 Available, natural and hydropower flow 3.3.1.1.2 Potential hydro power calculation 3.3.1.1.3 Economic fea s ibility 3.3.1.1.4 The G IS software tool to evaluate the residual potential hydropower in a watercour se 3.3.1.2 Smart Mini-Idro 3.3.1.2.1 Discharge Module 3.3.1.2.2 Turbine selection Module 3.3.1.2.3 Energy calculation Module 3.3.1.2.4 Cost evaluation Module 3.3.1.2.5 Financial Analysis Module 3.3.1.3 Hydropower Investor Database Structure 3.3.1.3.1 Public Cadastre in the internet Policies, Methodologies & Tools to Improve the Exploitation of SHP 1 Introduction: The rationale of the deliverable D3.1 The specific aim of the deliverable D3.1 is to make available policies, methodologies and “friendly-use” tools for a better assessment of water resources availability, for assessing potential mini-hydro plants sites in the territory (including related environmental constrains), for a complete economical & financial analysis of SHP plants (including eventual subsides), to better communicate/disseminate opportunities to investors and to increase the interest of stakeholders to invest in small scale electric plants.