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Relative impact (standard deviation) of parameter |
Impact - Net Present Value (NPV) |
0.8 |
1 |
1.2 |
Debt ratio |
Sorted by the impact |
Debt interest rate |
Debt term |
Initial costs |
O&M |
Fuel cost - base case |
Fig. 7 Project sensitivity analysis (RETScreen 2004) |
Technical-Economic Prefeasibility Assessment of an Off-Grid Mini-hydropower. . . |
1201 |
values for the NPV. The histogram in Fig. 8 shows that the 90% confidence region |
is much higher than the 10% risk region. |
4 |
Conclusions |
The potential of electricity generation by a small hydropower plant on Tuwan |
River, which flows across TAR (Tuwan Agribusiness Resort) is presented by this |
project. In particular, the financial and GHG savings of the proposed case are |
compared to the full power supply using diesel generator sets. The following |
conclusions are drawn from the analysis: |
• |
According to local measurements, Tuwan River may provide to this project an |
estimate of at least 21 kW power generation potential with a Kaplan turbine |
throughout the year. |
• |
The hydropower project provides GHG emissions reduction of 307.4 tCO2 |
equivalent. |
• |
A net present value (NPV of 568,178 USD (11% discount rate), internal rate of |
return (IRR) of 68.1% and benefit-cost ratio of 6.34 with incentives of a 50,000 |
USD grant and a tax holiday are obtained in favour of the mini-hydropower |
plant. |
The analysis shows that it is economically and environmentally attractive to |
pursue a mini-hydro project in this location. Thus, it is safe to invest more funds to |
conduct an extensive feasibility study with the aim of convincing fund (grant and |
loan) providers to invest in the project. |
Acknowledgements This research was made possible with the support of THERON Felicie of |
Ecole Nationale Superieure des Mines de Nantes. Premier Agricultural Development Ltd. pro- |
vided the site and corresponding data and their staff carried out required field measurements. |
14% |
12% |
10% |
8% |
6% |
4% |
2% |
0% |
474,371 |
494,781 |
515,192 |
535,603 |
556,013 |
Distribution - Net Present Value (NPV) |
Frequency |
576,424 |
596,834 |
617,245 |
637,656 |
658,066 |
Fig. 8 Project risk analysis (RETScreen 2004) |
1202 |
V.H. ADAMU et al. |
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