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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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