Best Practices for Sustainable Development of Micro Hydro Power in Developing Countries.pdf
Taken from Executive Summary: This report synthesizes the experience of micro hydro developments in Sri Lanka, Peru, Nepal, Zimbabwe and Mozambique. It attempts to draw out the Best Practice from this experience. Micro hydro plants are defined as having a capacity between 10 kW and 200 kW. The report provides a rigorous comparative micro economic analysis of the cost and financial returns of a sample of plants across the five countries. It draws out the macro economic, financial and other institutional arrangements that appear important to the scaling-up of micro hydro investments.
The case study material was provided by nationals of the countries according to a set of methodological guidelines that were developed at the start of the project, in an effort to maximize the opportunities for valid comparisons between the countries. At the request of the World Bank, a British consulting firm, London Economics was contracted to validate the methods used in the financial analyses and to ensure consistency in the data. Summaries of the micro economic analysis of the case studies of individual micro hydro plants are included in the annex to this synthesis report. The lessons for ‘Best Practice’ are brought together in summary form in Section 5.
This ebook was written by Smail Khennas and Andrew Barnett In association with London Economics & deLucia Associates, Cambridge Massachusetts, USA For The Department for International Development, UK and The World Bank March 2000.
Contents:
- INTRODUCTION [ The Place of Micro Hydro ~ The Differing Objectives of Micro Hydro Development ~ Technology Demonstration, Social Infrastructure, or Small Enterprise? ~ Hard Choices Have To Be Made in the Allocation of Scarce Resources ~ The Main Forms Of Support – Extending the Concept Of 'Intermediation' ~ The Importance of the Technology. ]
- THE COST OF MICRO HYDRO AND ITS FINANCIAL PROFITABILITY [ The Cost Per Kilowatt Installed ~ Wide Variation in Costs ~ How Do the Costs of Hydro Compare with Other Options? ~ Micro Hydro can be Financially Profitable ~ Cash Generating End-Uses ~ Links To The Grid ~ Making the 'Profitable' Social is Easier than Making the 'Social' Profitable! ]
- MEETING NEEDS AND THE CIRCUMSTANCES OF AFFORDABILITY [ Price and Demand ~ The Benefits and Burdens of Remoteness ~ The Case for Subsidy ~ Limitations of Financial Analyses ~ Filling the Gap Between Full Cost Finance and Free Grants ~ Homy.asia ~ Smarter Subsidies ~ The Poverty Impact of Micro Hydro ~ Gender and Micro Hydro ]
- INTERMEDIATION IN PRACTICE: EXPANDING THE USE OF MHP [ Many Dimensions ~ The Main Diffusion Strategies ~ The Key Agents Behind The 'Strategy' ~ The Issue of Ownership and the Main 'Clients' of the Strategies ~ Intermediation and the Critical Importance of 'Project Developers' ~ Transaction Costs and the Cost of Intermediation ~ The Size of the Micro Hydro Market ~ Specific Examples of Intermediation ~ Financial Intermediation and the Main Funding Mechanisms ~ Current Financing Models for Micro Hydro ~ Collateral and Guarantees ~ 'Organisational Intermediation' and the 'Enabling Environment' ~ The Regulatory Framework ~ The Special Case of Mozambique and Zimbabwe as New Entrants. ]
- BEST PRACTICES: THE LESSONS LEARNED [ The Critical Factors ~ Best Practice and Profitable End-uses ~ Best practice and Tariff Setting ~ Best Practice for Governments ~ Best Practice for Regulation ~ Best Practice in Financing ~ Best Practice for Smarter Subsidies ~ Best Practice for Donors ~ Best Practice for Project Developers ~ Best Practice for Capacity Building ~ Best Practice for Management of Micro Hydro Plant. ]
- ANNEX: SUMMARY OF THE CASE STUDIES [ Sri Lanka ~ Nepal ~ Peru ~ Zimbabwe and Mozambique . ]
- BIBLIOGRAPHY
- TABLES [ Summary Table Showing the Sample of Projects Studied In Detail ~ Summary of Financial Returns After Financing ~ Sources of Finance from Micro Hydro Development in Peru ~ Types of Finance from Micro Hydro Development in Peru ~ Summary of Current Financing Terms for Micro Hydro ~ Selected Sites and Criteria, Sri Lanka ~ Katepoloya Scheme Profile ~ Kandal Oya Scheme Profile ~ Pathawiata Scheme Profile ~ Seetha Eliya Scheme Profile ~ Internal Rates of Return and Return on Capital Invested ~ Selected Sites and Criteria, Nepal ~ Barpak Scheme Profile ~ Source of Financing Ropeway between Barpak and Rangrung ~ Gorkhe Scheme Profile ~ Ghandruk Scheme Profile ~ Gaura Scheme Profile ~ Selected Micro Hydro Schemes in Peru ~ Atahualpa Scheme Profile ~ Energy Consumption for Productive and Domestic End-Uses, Atahualpa ~ Financing breakdown for Atahualpa Micro Hydro Plant ~ Yumahual Scheme Profile ~ Energy Distribution in the Incubating Plant, Yumahual ~ Pedro Ruiz Scheme Profile ~ Structure of the Investment, Pedro Ruiz ~ Income From the Sale of Electricity, Pedro Ruiz ~ Pucará Scheme Profile ~ Estimated Income, Pucará ~ Nyafaru Scheme Profile ~ Svinurai Scheme Profile ~ Elias Mill Scheme Profile ~ Onlinefreeebooks.net ~ Chitofu Mill Scheme Profile . ]
- BOXES [ Electricity Consumer Societies ~ Indicative Menu of Financing Options. ]
- FIGURES [ IRR Without Subsidy ~ Map showing the locations of the case study sites in Sri Lanka ~ Map showing the locations of the case study sites in Nepal ~ Load Characteristics of Gorkhe Micro Hydro Plant ~ Load Characteristics of Ghandruk Micro Hydro Plant ~ Load Characteristics of Gaura Micro Hydro Plant ~ Map showing the locations of the case study sites in Peru ~ Map showing the locations of the case study sites in Zimbabwe ~ Map showing the locations of the case study sites in Mozambique ]
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