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Equipment Selection and Site Optimization Based on Energy Considerations

by James H. Fischer, Voith Hydro Inc, York, PA, USA,
Gerard J. Russell, Voith Hydro Inc, York, PA, USA,



Document Type: Proceeding Paper

Part of: Water Power '87

Abstract:

Most new hydro plants contribute little or nothing to overall system capacity. Therefore, traditional evaluation techniques based on dollars per installed kilowatt have no relevance when choosing between equipment options for a given site. The present value of the energy revenue stream represented by an equipment option should be the basis for evaluation between options for a given site. Given the present value of energy at a site and energy estimates for a number of options, an energy penalty may be calculated. That is the present value of the difference in energy produced by an option and the option that produces the most energy. The penalty is in effect a cost due to lost energy. This cost can be added to the base cost of a given option resulting in a net project cost. When the net project costs of a variety of options is calculated, a choice of the least net cost option may be readily made.

Subject Headings: Hydro power | Equipment and machinery | Construction costs | Site investigation | Power plants | Project management | Rivers and streams

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