Unit-V

ENERGY, ECONOMIC AND

ENVIRONMENTAL ISSUES
OF POWER PLANTS

By
Dr.V.Tamilselvi , Professor/HoD
EEE
Mr.D.Rajasekaran ,
ASP/RMDEEE
 Case Studies - 2
Objective:
• Application of the NPV and IRR method
• Evaluation of a hydro-power station
• Effect of environmental parameters on an
energy investment implementation
• Comparative assessment of a nuclear and a
RES-based power station
 in Greece
Where?

a small hydro
power plant
Problem
Why? Statement What?
(1)
for a private (scale economy,
investment funding)

How big?
Problem Statement (2)
 Initial Cost
REDUCED COST OF SMALL HYDRO POWER STATIONS
50kW
4500
500kW
1000kW
4000
5000kW
10000kW
3500
Local Market Mini
Local Market Micro
Reduced Cost (Euro/kW)

3000
Local Market Small

2500

2000

1500

1000

500

0
0 25 50 75 100 125 150

HYDRO-TURBINE HEAD (m)

 Annual Revenues
Annual Energy Yield Tsimovo Station

80000

70000

60000

50000
Energy (MWh)

40000

30000

20000

10000

0
1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980
Year
Viability Analysis-IRR Prediction(1)
Initial Capital
Small Hydro Power Station Viability Analysis (IRR=10.0%)
Fixed M&O Cost
2
Variable M&O Cost
Tax Impact
Investment Revenues
1,5
Residual Value
Net Present Value

1
NPV

0,5

-0,5

-1
0 2 4 6 8 10 12 14 16 18 20

Years of Operation
Viability Analysis-IRR Prediction(2)
Initial Capital
Small Hydro Power Station Viability Analysis (IRR=21.12%)
Fixed M&O Cost
1,0 Variable M&O Cost
Tax Impact
0,8 Investment Revenues
Residual Value
0,6
Net Present Value

0,4

0,2
NPV

0,0

-0,2

-0,4

-0,6

-0,8
0 2 4 6 8 10 12 14 16 18 20

Years of Operation
Initial Cost Impact on IRR
Tsimovo Small Hydro Power Station
(υ=50%, γ=40%, No=10MW,Tax Incl.)
35%

n=10 years
30% n=15 years

25%

20%
IRR

15%

10%

5%

0%
1000 1250 1500 1750 2000

Specific Initial Cost (Euro/kW)

State Subsidization Impact on IRR
Tsimovo Small Hydro Power Station (υ=50%, No=10MW,Tax Incl.)
γ=40%
25%
γ=20%
γ=0%
γ=0%
20% γ=0%, No Tax-10

15%
IRR

10%

5%

0%
0 5 10 15 20 25

Years of Operation