Strategic Measures and Incentive Policies of SHP in China

2 www.hrcshp.org SHP NEWS Winter 2004

SHP in China

Hangzhou Regional Center(Asia-Pacific) for Small Hydro Power

Strategic Measures and Incentive Policies ofSHP in China

1. Corresponding development ofequipment manufacture

t the primary stage of SHP de-velopment (1960s 1970s),

wooden or iron-wooden turbinesmanufactured by agricultural machin-ery works were mainly adopted inChina. Before 1949, SHP equipmentwas generally imported due to lack ofdomestic manufacturing capability. In1952, the first turbine-generator unitof 800 kW capacity was successfullymade in China, followed by furtherproduction of 10,000 kW units in1954. However, the supply of electro-mechanical equipment was still insuf-ficient then. In some places, waterpumps and motors were retrofitted toreplace turbines and generators,while bamboo and wooden pipeswere used to substitute for steelpipes.In the 1960s, more than ten profes-sional factories for small-sized tur-bines were set up across the country,with a total production capacity of100,000 kW. For turbines, a metalstructure was mainly adopted.

ince the Chinese type-series ofsmall-sized turbines was first is-

sued in 1965, production of mediumand small sized units has becomestandardized. Revised and supple-mented in 1978 and 1992 respectively,it includes two types of runners, i.e.axial-flow (propeller ZD & Kaplan ZZ)and Francis (HL). The type-series, asthe foundation of serialization, gen-eralization and standardization, speci-fies the series of turbine, runner typesand the main parameters of theturbines. It is not only an important

basis for type selection, variety de-velopment and new productresearch, but also a significant tech-nical standard. With the turbine type-series, more demand can be met witha few, rational number of products,thereby simplifying design andmanufacture, facilitating large-scaleproduction, ensuring productquality, reducing costs, and short-ening production cycle as well assimplifying things for end-users.

p to the 1970s, the number of thefactories specialized in produc-

tion of turbines and auxiliaries in-creased to over 60 nationwide, witha total annual production capacity of1,000 MW. The unit capacity of seri-alized turbines ranged from 250 kWto 12,000 kW.In 1978, China began to unify thedesign for small-sized turbines, whichled to the unification of diagrams,standardization and universalizationof the components. Taking advan-tage of the existing products, andadopting newly developed runners,the unified design improved the de-sign efficiency of the products. Inaddition, it increased the proportionof standardized and universalf i t t ings, and thus faci l i ta tedp r o d u c t i o n , o p e r a t i o n a n dmaintenance.

tepping into the 1980s, Chinaowned more than 100 SHP equip-

ment manufacturers, with a total an-nual production capacity over 1,500MW. Meanwhile, a great number oflocal township enterprises also hadthe capability of producing SHPequipment. With respect to standard-ized turbines, there were 26 modes

and 83 types, with water head rang-ing from 2.5 m to 400 m, and unit ca-pacity from several kW to 12,000 kW,which could be adapted very well tovarious site conditions. Up to 1993,some more advanced runners were in-cluded in the type-series, indicatingthat the parameters and performanceof Chinese SHP equipment hasreached a relatively high level. Theperformance and parameters of twokinds of runners, axial-flow (propellerZD & Kaplan ZZ) and Francis (HL)included in the Chinese turbine typeseries are shown in Table 1.

wing to the implementation of se-rialization and standardization,

the production cost of small-scale hy-dro turbines is reduced, and the or-dering and production cycle time canbe shortened. Meanwhile, it can alsopromote the standardization of somecascade or neighbouring hydropowerstations, so as to adopt the same typeof turbine-generator set and signifi-cantly lower the cost. Though the ef-ficiency of small hydro turbines inChina is 1%~3% lower than that ofWestern countries, for small rivers andsmall stations, it is totally worthwhileto obtain more benefit from a greatprice reduction even with slight lossin efficiency. That is also the reasonwhy more and more SHP stations inAmerican or European countrieswould like to adopt Chinese-made tur-bine-generator units.

n order to coordinate and coop-e ra t e among the des ign

department, the construction unit andthe manufacturing organisation, andto unify their understanding about theequipment manufacturing and opera-

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SHP NEWS Winter 2004 www.hrcshp.org 3

Usually, these newly developed run-ners are numbered according to theserial code of the research institutionsand then successively applied forproduction. Optimization calculationshave been undertaken for the mainturbine components, including theirstructure, shape and dimensions;stainless steel runners with high anti-cavitation and abrasion-resistancehave been adopted; the panel for thehydro-generator pole made of highstrength material 20Mn5 has beendeveloped to increase its low tem-perature and rupture tenacity; theelastic metal-plastic pad for thrustbearings with high anti-abrasion andlow friction factor has been adopted,making possible operation at extra lowspeeds, and meeting the demand forcold or hot starts, thus ensuring safeand reliable operation, resistance topad damage during repair and main-tenance and high load-bearingcapacity; and the fan-less ventilationsystem with the feature of low venti-

lation-loss is used to seek higherefficiency. In addition, more newtechnology, new material and newprocesses have been developed andapplied, including the parallel boxstay ring and circular diversion ringbox stay ring; thermopress shapingof runner blades; welding technolo-gies for special type steels used forrunners; new assembly processes forthe main shaft; and a new process foron-site stacking and assembly of afull circular stator core.

he production of governors hasbeen standardized. With 8

grades of regulating capacity, i.e.,3000, 1800, 1000, 600, 300,150, 75, and35 kg-m, the governors can be classi-fied into micro or small by capacity.For micro governors, there are 4types, i.e. TT35, TT75, TT150 andTT300, all of which are electro-hydraulic, with pressure produceddirectly by an oil pump. For smallgovernors, there are 3 types, i.e.YT300, YT 600 and YT1000, all ofwhich are electro-hydraulic with apressure oil tank. Besides the small-scale mechanical or electrical ones,microprocessor-based governorshave been applied in SHP stations inrecent years, of which, a kind of ad-vanced computerized governor withhigh oil pressure proportional con-trol valve has been newly developed.With respect to this device, the guide-vane servomotor is operated directlythrough control of a proportionalvalve, which improves reliability andstability, and avoids possible deadzones or failed action of the mechani-cal lever because there is no mechani-cal drive structure inside; and the airvessel energy storage system hasbeen adopted, which reduces invest-ment and facilitates maintenancesince there is no high pressure gassystem in the station. Inlet valvetypes include gate valve, gravity but-terfly valve, and ball valve and back

tion of SHP equipment, China is or-ganizing the compilation of “The Pa-rameters of Small-scale Hydro Tur-bine Types and General TechnicalConditions”, “The Basic TechnicalConditions of Small-scale Hydro Tur-bines” and “The Norms of Accep-tance Test for Small-scale Hydro Tur-bines” for issuing as nationalstandards. These technical docu-ments summarizing decades of expe-rience will bring equipment selectionfor China’s SHP to a new stage ofdevelopment.

n recent years, thanks to the de-velopment of computers and

simulation technology, as well asstimulation from the market-orientedeconomy, more updated runners withbetter performance and parametershave been successfully designed andadopted, with application of the bi-nary and quasi-ternary CAD systemfor Francis, as well as the CAD sys-tem with singular point distributionmethod for axial-flow turbines.

SHP in China

Table 1 Performance and Parameters of Chinese Small-Sized Turbines

(Axial-flow & Francis)

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valve.i th respect to the smallgenerator, there are two series

(SF and SFW) serving the presentmarket in China which match the smallturbines, with 16 frame dimensionnumbers and 280 varieties in total, andcapacities ranging from 5 kW to 10,000 kW. SF and SFW indicate unitswith vertical main shaft or horizontalmain shaft respectively. For verticalunits, the capacities range from 5 to10,000 kW, while the horizontal onesare generally below 5,000 kW. Thereare two voltage grades for smallgenerators, i.e. low voltage of 400 Vand high voltage of 6.3 kV. Genera-tors with capacity below 500 kW areusually of low voltage. So far, unifieddesign has been undertaken in Chinafor units of SF and SFW series.

he governor, exciter, controla n d p r o t e c t i o n p a n e l ,

switchboard, automation compo-nents as well as valves, are includedin the auxiliaries of the SHP units. Theseries standards and quality stipula-tions have been formulated in Chinato facilitate product selection or pur-chase by power station designers orusers. To reduce costs for low volt-age units with capacity below 500kW, electrical/manual or simple hy-draulic operators are sometimesadopted to substitute for automaticgovernors which have a complexstructure. Integrated utilization ofelectrical/manual operator or simplehydraulic actuator with micro com-puterized controllers enables theunits to be automatically controlled,leading to reduction of attendants orunmanned operation for the SHPstation.

icro packaged units refer tothose with unit capacity below

100 kW and whose turbine, genera-tor and intake valve are assembledtogether as an integrated unit. Thefeature of the packaged unit is its

simple structure, generally with re-moval of the complex guide structure.Sometimes, asynchronous genera-tors are used instead of synchro-nous ones. Thanks to its reliableperformance, convenient opera-tion and low price, packaged unitsare considerably applied in SouthChina, and contribute to the de-ve lopment of loca l waterresources, and meet the electric-ity demands of dispersed farmers.There are several dozen kinds ofconventional packaged units, in-cluding Francis, propeller, tubularand Turgo, with water head rang-ing from 1.3 m to 100 m.

2. Training of professionals great deal of effort has gonei n t o t h e t r a i n i n g o f

professionals. In many colleges anduniversities nationwide, special en-rolment is offered in order to nurturetechnicians for development of ruralhydropower and construction of thepower grids. In particular, a largenumber of qualified people so farhave been trained in the College ofRural Electrification, Hohai Universityand others, to meet the demands ofrural electrification. Meanwhile, spe-cialized training schools in eachcounty have made great contribu-tions to the training of skilled work-ers by combining theory andpractice.

3. Basic stimulating and protectionpolicies

uring decades of SHP develop-ment in China, especially since

constructing the hydropower-basedprimary rural electrification counties,a variety of preferential policies andmeasures have been carried out topromote SHP development. The poli-cies and measures are varied at dif-ferent stages.

(1) In the 1950sfter the founding of the People’sRepublic of China in 1949, the

national economy began to recoverand the government focused muchattention on power supply in ruralareas. A special authority on SHP wasset up in 1953. “To emphasize waterconservancy and bring along SHP de-velopment” was the main policy con-cern then.

he principles of “three focuses”and “dual-purpose SHP for mo-

tive power and for lighting” have beencarried out, i.e. “focusing on smallscale and commune-run hydropower,utilizing SHP as a source for bothmotive power and lighting, and em-phasizing construction and manage-ment simultaneously. It calls for over-all planning, integrated utilization,hard work and high efficiency.”

(2) In the 1960sn 1963, the Rural ElectrificationBureau, with approval of the Cen-

tral Government, was set up under theoriginal Ministry of Water Resourcesand Electrical Power. A series of poli-cies and measures on SHP develop-ment was put forward, embodied as:To develop rural power grids and ru-ral SHP simultaneously, focusing onthe base of commercial foodstuff andcotton, to put emphasis on electric-ity for irrigation and drainage and touse power from the grid as the mainsupply.To enforce the p r inc ip le o f“adjustment, reinforcement, enrich-ment and improvement”. In order tostrengthen the role of SHP and arousepeople’s enthusiasm to develop SHP,relevant measures were adjusted andimplemented from 1961 to 1963. Theinvesting structure was “Investmentto be shared by three parties, i.e.country , local author i ty andcommune”, and with the approval ofthe Ministry of Finance, the policy of

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“further developing SHP with ben-efits from existing stations” began tobe undertaken then.(3) In the 1970s

uring this period, the develop-ment of SHP was based on the

principle of “focusing on small scale,commune-run and local manufactureof equipment”, and provided powersupply for irrigation and drainage,production and repair of agriculturalmachinery, processing of agriculturalby-products, meeting the electricitydemand from county/ commune-owned industries and farmers’ dailyliving and lighting needs. In order todeal with new problems arising in thedevelopment process of the powerindustry and SHP, correspondingpolicies and measures were furtherformulated.

irstly, the definition of SHP wasput forward, with the proposed

planning principles. Those hydro-power stations or transmission/trans-former projects with unit capacity nomore than 6,000 kW or installed ca-pacity no more than 12,000 kW werecalled SHP. With respect to planning,the principle of “overall plan, com-prehensive conservancy and com-bined water control and power sup-ply” was undertaken.

he construction and manage-ment system was clarified. It re-

quired attention and investment onSHP from administrations at all levels,i.e. county, commune and brigade withthe preferential policy known as “3-selfs”, i.e. “self-construction, self-management and self-consumption”.

he policy on investment wascharacterized by depending

mainly on local financing, with appro-priate financial support from the cen-tral government. Stations with unit ca-pacity below 500 kW were usuallybuilt by the communes and brigades,with special subsidies earmarked bythe central government from the pub-

lic allocation for small-scale farmlandwater conservancy, which came toabout 150-200 Yuan per kW onaverage, i.e. equal to 20% of the totalinvestment; other stations above 500kW were mainly constructed by mu-nicipalities and counties. With check-ing and approval of the provinces,these would be listed in the local de-velopment plan for water resourcesand electric power infrastructure, withfunding coming mainly from localmobilization, and with 40%-60% of thetotal investment aided by the centralgovernment. The equipment neededwas listed under planned supply.

he policy encouraged SHP to beintegrated into the power grid.

The relation between the large andsmall power grids was detailed as: thelarge power grid should make a con-tribution to agriculture and give sup-port to SHP’s integration; the prop-erty rights of SHP stations should notbe changed after the integration andmaking a profit should not be the aimwhen setting the purchasing price forthe SHP absorbed by the large grid.

(4) From the 1980sn order to speed up the develop-m e n t o f p r i m a r y r u r a l

electrification, a series of related gov-ernment policies have created a fa-vorable environment for SHP.

a. Policies on developmenthe policy of “focusing on localcapability with assistance from

the central government” was carriedout, to encourage enterprises or indi-viduals to be involved in SHPdevelopment. It was characterized by“self-construction, self-managementand self-consumption”, which meansthat those who invested in SHP sta-tions would get the benefits from thestation.— Self-constructionThat is to allow and encourage the

local governments and the localpeople, who were full of enterprisingspirit, determination and self-independence, to plan and constructlocal SHP stations by themselveswith local capability, local resources,local technology and local material.The funds were also mainly raised bylocal mobilization, and in some places,even the SHP equipment concernedwas produced locally.— Self-managementThat means that those who investedin SHP would have the ownership ofthese stations. It avoided administra-tive interference in re-allocation ofassets, and protected the enthusiasmof local governments for developingSHP. Therefore, the SHP managerialsystem that operated was quiteadvanced, as it could be regarded asan embryonic form of today’s marketeconomy.— Self-consumption

hat means that the electricity gen-erated by the SHP station was

usually mainly supplied to meet localdemand. It required that SHP shouldhave its own supply area, and a uni-fied SHP market of electricitygeneration, supply and consumptionshould be established. In order tocarry out the principle of “self-consumption”, the government stipu-lated that large power grids shouldsupport SHP financially and ensuresupply areas for SHP. After integra-tion into the large power grid, theoriginal SHP property rights, affilia-tion and financial system should notbe changed, with the approval au-thority for construction of SHP withinthe local grid and transmission ortransformer facilities remaining withthe local hydropower authority. Af-ter integration, electricity exchangebetween grids operated as mutualsupply or bulk sale, i.e. supply wasbalanced by using the self-supplycapability of the small grid. If the small

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grid capacity was greater than the loadfor more than half a year in any oneyear and was able to supply to thelarge grid, then it was to be regardedas mutual supply, and the small gridcould enjoy the same sales and pur-chasing prices as the large grid.Otherwise, a price based on bulk salewould be implemented on a quarterlyor monthly mutual balance basis; thelarge grid should not directly developload for direct supply within the areaof the small grid, i.e., whoever sup-plies electricity should also be re-sponsible to the users.

he principle of “3-selfs” was re-garded as the core of SHP poli-

cies in China. During many years’practice, the government stuck to theprinciple of “3-selfs” and formulateda corresponding series of preferen-tial policies for local exploitation ofSHP, thereby creating a SHP devel-opment system with Chinesecharacteristics.

b. Policies on investmenthe central government grantedsubsidies and special loans for

d e v e l o p i n g S H P a n d r u r a lelectrification. With the policy of“Electricity supports electricity”, allthe profit from SHP stations and lo-cal power grids could be exemptedfrom tax and used for reinvestment inSHP. In the year 1996 alone, profitsfrom the stations used for further de-veloping SHP nationwide reached480 million Yuan. Nearly 20 years’implementation bears witness to thefact that this policy has played a sig-nificant role in SHP development.With financial support from localgovernments, Rural Hydropower De-velopment Funds were established,and in rural areas with power supplyfrom SHP, 0.02 Yuan per kWh usedwas levied for these Funds.

c. Policies on tax

efore implementation of the newtax system in 1994, only 5% of

the profits from a SHP station werelevied as a product sales tax. Since1994, the policy of 6% value-addedtax was levied for SHP, versus that of17% for large hydropower and largegrids. With respect to income tax, 33%of the company profits were stipu-lated to be levied, however in someprovinces, half of this, and in somecases, even the full amount, wouldbe refunded to the stations. Thesepolicies were more preferential thanthose for large hydropower stations.

d. Policies on mobilizationhe farmers took great interest inSHP construction, and it was

common to convert the labour con-tributed by the farmers into funds.Some counties set the regulation thatevery farmer had the duty to make acontribution in developing hydro-power and communal facilities, say,no less than 8-10 working days eachyear. During the construction of hy-dropower stations and power gridsin some counties, the work contrib-uted by the farmers could be con-verted into investment in kind in theform of shares.

e. Policies on loansCentral government and local govern-ments at all levels granted low-inter-est loans amounting to several hun-d red mi l l i on Yuan fo r SHPconstruction, for which the repay-ment period was around ten years.

4.Other preferential policiesn recent years, following in-depthinstitutional reform, reforms in

the power system and the “unifiedprice after reconstruction of ruralpower grids and refurbishment ofhigh-loss transformers”, a series ofpreferential policies have beenissued.

(1) Making full use of the policy of“converting debt into equity” andthe policy of “granting subsidisedloans for technical rehabilitation ofenterprises”

ince the government stressed thedevelopment of the central and

west regions and support the minor-ity autonomous regions with prefer-ential policies, more new policies areexpected to come out, including“subsidised loans”, “extending theloan repayment period”, “collateralelectricity fee ”, “adjustment fundsfor loans and interest repayment forrural power grid construction orrehabilitation”, “fund for develop-ment of hydropower and ruralelectrification”, “partial allocation ofthe local portion of value-added tax”,“two-year exemption and three-yearreduction of income tax”, and “sepa-ration of old and new accounts withzero interest for the old ones”.

(2) Attracting more investment andfinancinga. According to the financial forecastfor the construction of hydropower-based rural electrification counties orregions (including the Green Devel-opment Plans, such as “replacing fire-wood by electricity”, for the promo-tion and protection of the ecologicalenvironment), a special financing of1,000 million Yuan for construction,and a special policy loan of 4,000- 6,000 million Yuan are expected tobe issued annually by the centralgovernment. The Bureau of RuralHydropower and ElectrificationDevelopment, Ministry of WaterResources, its affiliated economicentities, and the related provincial(regional, municipal) hydropowergroups or companies are authorized,in coordination with the State Devel-opment and Reform Commission,Ministry of Finance and banks, to be

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in charge of the supervision, manage-ment and operation of the loans, andtheir rolling utilization.b.With respect to the construction ofstate-owned hydropower stations,financial institutions at all levelsshould contribute to a reasonableproportion of the required capitalinvestment. For projects which com-bine flood control, irrigation and wa-ter conservation, a reasonable allo-cation from the water resources bud-get should be used as investmentcapital.c . T h e p r i n c i p l e o f “ b a s i ndevelopment, cascade development,rolling development and integrateddevelopment” should be observed,and a mechanism to promote thegrowth and development of basinpower corporations and basin hydro-power groups should be set up. Rel-evant investment policies have beenformulated for compensating headwa-ter reservoirs, and improving theregulating capacities of cascade sta-tions during dry or wet seasons. Usu-ally the first station of the cascadehydropower development is investeddirectly or mainly by the central andlocal governments, and then the ben-efits from it would be used for furthercascade development, i.e. being theparent entity of the cascade stations,the first station would be in charge offurther rolling development.d.Shareholding or joint-stock hydro-power stations should be developedenthusiastically. Actively broaden theways to go to the stock markets forissuing bonds and seeking financing,meanwhile, pay attention to attract-i n g f o r e i g n i n v e s t m e n t i nhydropower.

(3) Carry out the principle of “fo-cusing on the large”, and seek multi-forms of realizing public ownership

a.Promote the rational flow and re-

structuring of state-owned assets,magnify its function, and improve itscapability to control, influence andact as a role model. Guided by themarket and interlinked by their assets,numerous hydropower groups ofvarious forms and various scales havebeen formed. The emphasis is on theestablishment of provincial hydro-power industrial groups, the imple-m e n t a t i o n o f p r o p e r a s s e trestructuring, and structural adjust-ment and system reform. The enter-prises are expected to enhance theircapabilities in capital management,s c i e n c e a n d t e c h n o l o g ydevelopment, and market competitionand risk management.b.A variety of flexible measures havebeen taken to invigorate the localstate-owned hydropower enterprises,such as restructuring, recombination,merging, lease, contracted marketing,joint-stock system or sale. “Sale” isrestricted to the non-key powerstations, and should be carried outonly in accordance with the relevantnational regulations.

(4) Strengthen the building up of alegal system, and normalize the trad-ing in power and the related super-vision mechanism

a.Fully carry out the “Law on ElectricPower”. Guided by the related eco-nomic sectors, the Ministry of WaterResources actively carries out itsduties according to the law, focusingon the checking, ratifying and demar-cation of the power supply areas forthe local grids, and the supervisionand checking of issues related topower supply or consumption, withthe aim of preventing vicious compe-tition and providing better servicesfor the users. Great efforts are madeto promoting entities with multi-legalpersons, and the growth of the powermarket with orderly competition

b. With respect to those power sup-ply businesses which have beenawarded a business license after be-ing checked, ratified, and allocated asupply area, the related rights andbenefits should be ensured with noinfringement according to law.c. Strengthen the building up of thelegal system and the rule of law tofight against monopoly and unjustcompetition; set up and normalize thetrading in power and the supervisionmechanism to ensure the sound de-velopment of medium and small hy-dropower in the poverty-stricken ru-ral areas. The medium and small hy-dropower enterprises integrated intothe large power grid in the central,west and autonomous regions shouldhave guarantees they can mainly op-erate based on the principle of “selfgeneration and self consumption”,however, any surplus should be in-tegrated into the grid and any defi-ciency should be supplemented bythe grid. “Self-consumption” mustnot be restricted. The station shouldnot sell to the grid at a low price, norshould it be forced the buy high pricepower from the large grid.d. Establish a rational scientificmechanism for electricity pricing,which enables the price to really re-flect the value, the relationship be-tween demand and supply as well asfair treatment. It is expected to leadto lower electricity prices in ruralareas, peak and off-peak periodpricing, implementation of the systemof pre-purchase of electricity, guar-anteed electricity payment and to pro-m o t e c o m m e r c i a l l y - m i n d e dmanagement.e. Closely study the proposal of theWorld Bank to implement the policiesfor poverty-alleviation and develop-ment and offer electricity subsidiesto low-income households in the cen-tral and west regions and other pov-erty-stricken rural areas.


(5) Deepen the reforms and reinforcemanagementa. During the process of the institu-tional reform of local governments,based on the main functions and re-sponsibilities assumed by the Bureauof Rural Hydropower and Electrifica-tion Development, MWR, and accord-ing to the principles of “To seek highefficiency and perfection, to unifyresponsibility and power, to unifyconstruction and management”, at-tention has been focused on the ad-justment and reform of the hydro-power administrative institutions inthe field of water resources, theimplementation of hydropower-basedrural electrification, the institutionalreform of the rural electrical system,the rehabilitation of the rural powergrid, and unifying the power grid andpower prices so that they are the samefor both urban and rural areas.b. With authorization from thegovernment, the water resources sec-tor has been confirmed as the repre-sentative of the investor for state-owned water resources and hydro-power assets. A system for the inves-tors has been established, and theyare exercising their responsibilities toensure the safety, integrity and in-

crease in value of the state-ownedwater resources and hydropowerassets. Efforts are being made to setup and improve the system of super-vision and management of the state-owned water resources and hydro-power assets, and supervision andmanagement of property rights arecarried out by the relevant authori-ties of the water resources sector andits related entities (Groups or Hold-ing Corporations).c. Management of the industry is tobe strengthened through the follow-ing concrete means: (a) reinforce thef o r m u l a t i o n o f p l a n n i n gprogramming, principles and policiesas well as emphasising overallarrangements, coordination, supervi-sion and checking; (b) actively nur-ture the interconnecting relationshipof property rights within the indus-try and gradually strengthen the sig-nificant role of property rightslinkages; (c) intensify the building upof industry associations so they canfulfil their roles of networking,advising, research, consultancy andproviding other services.d. Establish a modern enterprisesystem, with rational integration ofthe reform, reorganization, restructur-

SHP in China

ing and strengthening of themanagement; set up and improve ad-ministrative institutions for legal per-son governance, define responsibili-ties and the related ‘checks and bal-ances’ mechanism; improve the vari-ous bylaws, reinforce work at thegrassroots and improve the qualityand talent of the employees; stick tothe principle of “ safety first and qual-ity first”, put emphasis on profes-sional management, cost manage-ment and quality management, real-ize the safe and civilized productionand management of electricitysupply.e. Strengthen the auditing and super-vision of the economic activities ofthe enterprise, reinforce awareness ofthe l aw and the concep t o fcreditability, and run the business incompliance with the law; establish andimprove the mechanisms for givingincentives and restraining businessmanagers, set up a system for tracingresponsibility when mistakes aremade in decision-making; establish acompensation system integrating“pay according to work” and “paybased on production element”, basedon the principle of efficiency first and

also taking into account fairness.

“Report on the Development and Major Issues of theSmall Hydro Power in the Asia-Pacific” Completed

The report (around 80,000 Chinese characters) on the develop-ment and major issues of small hydropower in the Asia-Pacific has beencompleted by HRC recently.

While focusing on Asia-Pacific developing countries, it also refersto some developed and developing countries worldwide. The reportmainly covers: 1) Small hydropower resources, development condi-tions and prospect in various countries; 2) Significance of incentivepolicies; 3) Analysis on the macro & micro benefit from the small hydropower both in theory and practice; 4) Public-private participation inthe development of small hydropower in China and internationally.

The aim of the report is to provide comprehensive, detailed, ob-jective reference material with deep insight and independent viewpointfor SHP decision makers in China and elsewhere in the world.

“Rural Hydropower and Electrification in

China” published

In order to provide a comprehensive and detailedintroduction to the experience and technology in the ruralhydro and electrification drive with unique Chinesefeatures, Hangzhou Regional Center for Small HydroPower (HRC) has compiled the book titled <Rural Hy-dropower and Electrification in China> in English for thereference of the hydropower personnel especially SHPcolleagues throughout the world. The 170-page book cov-ers a survey of SHP development in China, its mainfeatures, SHP resources in China,SHP-based ruralelectrification, strategic measures and incentive policies,SHP technical level, current barriers to furtherdevelopment, measures to overcome them, outlook forSHP development, SHP international cooperation andetc.


The 2004 TCDC (Technical Coopera-tion among Developing Countries)Training Workshop on SHP Equip-ment was held from 12 Oct to 22 Nov2004 by Hangzhou Regional Centrefor Small Hydro Power (HRC). At-tended altogether 25 participants from13 countries, covering Africa, Asia,Eastern Europe and Oceania.

This training workshop which is the38th international SHP training work-shop conducted by HRC was spon-sored by Chinese Ministry ofCommerce, as one of the technicalcollaborative projects among the de-veloping countries. All the lodging,boarding, training, pocket money andthe domestic transportation fees wereborne by the Chinese government.That is part of the Chinese contribu-tion to the South-South cooperation.

Most of the teachers were from HRC,with some from abroad. The subjectsincluded procedures of SHPdevelopment, feasibility study, hy-drological analysis, low-cost and sim-plified civil structures, turbo-genera-tor units and auxiliary, electric equip-ment design, technical refurbishment,

computer application in SHP stations,SHP economic evaluation, etc. Suchspecial topics as hydro power re-sources in China, quality control,marketing and management, renew-able energy, hydraulic ram and micropower units were also introduced andevaluated by the participants asbeneficial.

Study tours were arranged toShaoxing, Shengzhou, Xinchang,Linhai, Wenzhou, Haiyan, Ningbo,Nanjing and Shanghai, where the par-ticipants felt to have benefited much.In Shaoxing, Shengzhou, Xinchangand Linhai, they visited some SHPstations of various developmenttypes including the rubber dam, si-phon in t ake and equ ipmen tmanufacturers. Visits were paid toLinhai Machinery Plant and LinhaiElectric Machine Plant where partici-pants were able to see the whole proc-ess of the hydropower equipmentmanufacturing. On-site discussionsand inquired were made concerningthe ordering and the service of thehydropower equipment. In Wenzhou,participants were excited to visit thebig private company Chint Corpora-

tion Ltd which has been fast growingin the recent years. The company islisted No 1 so far in China in the pro-duction of low voltage electricequipment. Its production line ishighly automatic. The participantswere so deeply impressed that theywould associate the technical levelof the company to that of such glo-bal big companies as GE or Siemens.The products were observed asreliable, appropriate and moderate inprice. In Haiyan, participants weredelighted to be able to visit one ofChina’s nuclear power plants —Qinshan Nuclear Power Companywhich is the first nuclear power sta-tion designed, constructed, testedand operated by the Chinese. SomeAfrican participants expressed thatnever in their life have they ever seena nuclear power plant and such expe-rience was very important.

Participants went to Ningbo, visitinga pumped storage station with in-stalled capacity of 80 MW. This sta-tion designed by HRC in the past fewyears was put into operation at theend of 1997. It has a big role to playfor the station to provide energy to

China’s International Cooperation on SHP Strengthened

SHP in China


the grids at the peak hour and its fi-nancial record all these years after thecommissioning is also encouraging.

Also, three days were spent inNanjing and Shanghai —the largestcity and port of China. In Nanjing,participants paid visit to TiexinqiaoHydraulic Experimental Base which isChina’s largest hydraulic experimen-tal base. With the opening and re-forming policy set forth by the Chi-nese government some 20 years ago,tremendous changes have takenplace in Shanghai. A great number ofskyscrapers pop up, with its modernand convenient transportationnetwork.

During the training workshop, HRCprovided a forum for the exchange ofSHP experience and technology. Theparticipants were earnest to offer theirpresentations. Altogether 13 presen-tations were made by the participants,introducing the experience and les-sons learnt in the practice of devel-oping SHP in their own countries.Some of their presentations are be-ing considered to be issued at thequarterly SHP News that HRC editsand publishes.

Apart from training and study tours,sightseeing programs were arranged.Visit was paid to Xitang, one of Chi-na’s ancient towns, where partici-pants were deeply impressed by itsold houses, quiet life, local flavoursand kind people. In Hangzhou, suchfamous sites as Su Causeway, FlowerHarbour Park, Hefang Street, FlowerNursery, Silk Museum, Dragon-WellVillage and etc were visited. Tabletennis competition, singing and danc-ing parties were conducted. Howexciting!The CD-ROM presented to partici-

pants at the closing ceremony con-tains a briefing to HRC and NanjingHydraulic Research Institute, the de-tails of 2004 TCDC SHP participants,presentations by HRC’s lecturers,presentations by the participants atSHP forum, photos reflecting activi-ties of 2004 TCDC training workshopon SHP equipment, one-hour-longselected Chinese traditional mastermusic pieces and the photos of scen-ery around Hangzhou — a paradiseon earth.

2004 TCDC Training Workshop onSHP Equipment that HRC imple-mented was a success. At the clos-ing ceremony, the monitor who wasfrom Nigeria put it: “The methodol-ogy of teaching and instruction wasexcellent and the lectures gave theirbest in terms of knowledge and expe-rience in their field of study.”

Previously, a series of SHP trainingworkshops have been conducted forAfrican participants by HRC. Forinstance, HRC implemented two SHPtraining workshops in 2001 and 2002,as sponsored by MOFCOM, China.The SHP potential in Africa is huge

and SHP resource exploited repre-sents less than 20% of the exploit-able SHP resource so far. However,in Democratic Republic of Congo, thenational electrification rate is onlyaround 7%, the population with noaccess to electricity over 47million.In Kenya, the national electrificationrate is only around 8%, the popula-tion with no access to electricity over30 million. In Nigeria, the populationwith no access to electricity accountsfor 47million. Therefore, China’s co-operation with African countries inthe future is great in the field of SHP.

In 2005 HRC is planning to conducttwo international training workshopson SHP including one for participantsfrom African countries. With its tech-nical service and experience fordecades, HRC is committed to par-ticipating in the SHP developmentprocess for African countries andelsewhere in the world. Those inter-ested in our upcoming SHP trainingworkshops are welcome to contact

with us.(By D.Pan, HRC training coordina-tor Email: [email protected])

SHP in China


Speech at the closing ceremony of 2004 TCDC

Training Workshop on SHP EquipmentProf.Cheng Xialei Deputy Director

of HRC

Good afternoon,Ladies & Gentlemen:As our director, Dr. Chen, has a busi-ness visit to Taiwan, I will deliver aclosing speech on behalf of him.The 2004 Training Workshop on SHPEquipment will end today. We have25 participants of 13 countries fromAsia, Africa, South Pacific and East-ern Europe attending the Workshop.It has got a great success.Firstly, through your study in class,you have learnt some essential tech-nology and experience related to thedevelopment of SHP. The subjectsincluded procedures of SHPdevelopment, feasibility study, low-cost civil structure, turbo-generatorunits and auxiliary, electric equipmentdesign, automation technology,equipment manufactureing qualitymanagement and so on. And alsosome special topics as the status ofhydro power resources in China, therubber dam, the pumped storageplants, foreign trade practices etcwere introduced. The engineers orspecialists from HRC and elsewhereshared their rich experience with you.Secondly, the study tour was ar-ranged to Shengzhou, Xinchang,Linhai, Wenzhou, and Xiaoshanwhere you visited some SHP stationsof various kinds, hydropower equip-ment manufacturers and big privateenterprises. These will help you tounderstanding the technology ofSHP. Thirdly, we successfully holdthe forum for the exchange of SHPexperience and technology. All thepresentations your delivered werewell prepared and really wonderful.

Some of your presentations will beissued at the quarterly SHP News thatHRC edits and publishes.In addition to training and studytours, sightseeing at weekends inHangzhou, table tanniss competition,dancing party etc were arranged. Alsowe visited Shanghai—the largest cityof China and Nanjing. In Nanjing, wepaid visit to Tiexinqiao Hydraulic Ex-perimental Base which is China’s larg-est hydraulic experimental base.Through these actives, you were ableto see more about China, to know itspeople and to make Chinese friends.That is to promote the traditionalfriendship between China and foreigncountries. Obviously, the Chineselanguage lesson arranged before thepresentation helps such exchangeand communication.With all your earnestness, you wereactive and responsive in class, andvery cooperative during the wholetraining period. For that, we were veryimpressed. And here I’d like to ex-press our sincerely thanks to all of

you. It is expected that you will playa more active role in the exploitationof SHP resources in your own coun-try and for the benefit of your peoplewhen you are back home.The mission of HRC is to promote theSHP development worldwide bymeans of training, consultation, R&D,information dissemination etc. Weplan to conduct another TCDC SHPtraining course in 2005 and your col-leagues or friends working the hydro-power sector are warmly welcome toparticipate.You are leaving HRC soon. I hopeyou keep close contact with HRC andconcrete SHP cooperative projectscould be set up between us with yourassistance. I believe all of you willserve the important bridge in the co-operation of all fields between Chinaand foreign countries in future. Whenthere is chance, you are welcome tovisit HRC again in future.Finally, I wish you all good health andsmooth trip to your own country!

SHP in China


Speech at the closing ceremony of 2004 TCDC Training

Workshop on SHP Equipment

Congratulations to the comple-tion the TCDC Training Workshop.During the past 40 days, a lot of mean-ingful and interesting activities hasbeen held in addition to the formallyscheduled lectures in the classroom.I assume yon enjoyed your stayinghere for not only obtaining the knowl-edge of SHP development from Chi-

nese lecturers but also acquiringbroad information through valuableexchange and discussion on SHPdevelopment of relevant countriesamong all participants. You have alsooffered your contributions by pre-senting your county reports to theworkshop. In this respect, I’ d alsoexpress my thanks, on behalf of HRC,for your valuable contribution to theinternational cooperation for SHPdevelopment worldwidely. As you

have been staying and studying herefor 40 days, you have surely becomeold friend of Chinese and of HRC. I’ drequest that you will act as the bridgeof cooperation between China, HRCand your respective country after yougo back. If there is any potentiality ofset up cooperative items or projectswith us, or if there is any new infor-mation that you feel to be interestingto the SHP sector in world, please feelfree to contact us or send the info tous. We will be glad to keep contactwith you in the future and hearingany follow-up response from our col-l e ague g radua t ed f rom th i sWorkshop.

Finally I’ d express warm con-gratulations for your graduation andbeing awarded of the certificates.Also hope your back journey to yourhome smooth and pleasant.

Thank you.

A Chinese Magazine“Small Hydropower” by HRC

h e C h i n e s e “ S m a l lHydropower”, a magazine that

National Research Institute for RuralElect r i f ica t ion (NRIRE) andHangzhou Regional Centre (Asia-Pa-cific) for Small Hydro Power has ed-ited and published for 120 issues (bi-monthly), was allocated with the In-ternational Standard Serial NumberISSN 1007-7642, and China StandardSerial Number CN33-1204/TV. It waspublished in Chinese attached withtitle of articles in English. Its specialfeatures are technical experience of

SHP development in China. Informa-tion of international SHP activitiesand important events in the field ofSHP have also been widely included.

This magazine carries news,views and articles on all aspects ofsmall hydro power. It is useful to thosewho are intersted in technical experi-ence of SHP development in China.

“Small Hydropower” is the onlyprofessional publication on small hy-dropower in China, which is issueddomestically and abroad. It is widelycircled in all corners of China con-

cerning SHP, and getting more andmore popular in over 600 rural coun-ties which is primarily hydro-electrified, more than 2,300 countieswith hydropower resources, morethan 50,000 small-sized hydropowerstations, thousands of colleges oruniversities, research institutes andother administrative authorities onSHP. Advertising is welcome for anyequipment manufacturer to targetChinese market on SHP construction,equipment purchasing or other

businesses.

T

SHP in China

Prof. Zhu Xiaozhang Honorary

Director of HRC


SHP Development and Programme Worldwide

By Dante Operario([email protected])Department of Environment & Natu-ral Resources – DENRMines & Geo-sciences Bureau, the Philippines

By Bienvenido Donila ([email protected])D e p a r t m e n t o f S c i e n c e &Technology,Eastern Visayas StateUniversity, the Philippines

Country presentation—Republic of the Philippines

(2004 TCDC Training Workshop on SHP Equipment Hangzhou, China)

policies, plans, and programs relatedto the accelerated development,transformation, utilization includingthe commercialization of renewableenergy resources (e.g. biomass,hydro, ocean, solar, and wind) andtechnologies and effective implemen-tation thereof.

REPUBLIC ACT NO. 7156 (RA7156) – an act granting incentives tomini-hydroelectric power developersand for other purposes. this act isalso known as the “Mini-hydroelec-

Philippine Power Generation Installed Generating Capacity, in MW

tric Power Incentives Act of 1991”.

TAX INCENTIVES UNDERRA7156* Special Privilege Tax* Tax and Duty-Free Importation of

Machinery, Equipment, and Mate-rials

* Tax Credit on Domestic CapitalEquipment

* Special Realty Tax Rates on Equip-ment and Machinery

* Value-Added Tax (VAT) Exemption* Income Tax Holiday

OVERVIEWREPUBLIC ACT NO. 7638 (RA7638) – an act creating the Depart-ment of Energy, rationalizing the or-ganization and functions of govern-ment agencies related to energy, andfor other purposes. This act is alsoknown as the “department of energyact of 1992”.

The Department of Energy (DOE)shall prepare, integrate, coordinate,supervise, and control all plans,programs, projects, and activities ofthe Government relative to energyexploration, development, utilization,and conservation.

The Renewable Energy Manage-ment Division (REMD) is a newly-created division of the DOE EnergyUtilization Management Bureau.REMD main function is to formulate

Hydropower GenerationClassification of Hydro Power in thePhilippines:* Micro-Hydro

- up to 100 kW

* Mini-Hydro- 101 kW to 10, 000 kW

* Large-Hydro- > 10,000 kW (10 MW)



2001Micro-Hydro 0.63Mini-Hydro 89.07Large-Hydro 2,434.10

Hydropower Installed Capacity, in

MW

Hydropower Installed Capacity, in

MW


Hydropower Challenges Socio-environmental concerns Type of development Commercialization of technology

Hydropower Programs Enhanced public acceptance Formulation of comprehensive pro-grams

Commercialization of technology– Creation of hydropower data-

base– Pursuit of technical cooperation

with other countries–Rehabilitation program for exist-

ing hydropower plants

Philippine Transmission System

Philippine Electricity SalesPower Consumption by

Sector, in GWh

New Industry Relationships

under Republic Act No. 9136

Philippine Electric Power Industry

Republica Act No. 9136 (RA 9136)– an act ordaining reforms in the elec-tric power industry, amending for thepurpose certain laws and for otherpurposes. This Act is also known asthe “Electric Power Industry ReformAct of 2001”.

The New Structure of the Industry



Small Hydropower in Benin


The Republic of Benin is situated onthe coast of West Africa, in the tropi-cal zone, between the Equator and theTropics of Cancer (between the 6° 30and 12° 30 parallels of Northern lati-tude and 1° and 30°40 meridians ofEastern longitude). It is bordered, inthe North, by the river Niger thatseparates it from the Republic ofNiger, in the North West by BurkinaFaso, in the West by Togo, in the Eastby Nigeria and in the South by theAtlantic Ocean.

The total land area of Benin is 114,763 km2. From North to South, itstretches over 700 km; its width var-ies between 125 km (along the coast)to 325 km (at the level of Tanguieta -Segbana).

Benin is blessed with numerous riv-ers and waterways:The Niger River Basin, which in-cludes tributary rivers namely:MEKROU :440 kmALIBOR : 338 kmSOTA : 250 km andPENDJARI : 380 kmThe Coastal Basin whose rivers runinto the sea, namely:OUEME : 510 kmCOUFFO : 120 kmMONO: 350 km .There are also many other waterwaysin the prominent amongst which are:NOKOUE Lake. 138 km2

AHEME Lake. 78 km2 and .PORTO-NOVO Lagoon .35 km2 .

During the period going from 1990 to2002, its economic growth acceleratedrelatively.So the GDP to constant price of 1985passed from 513.4 billions to 874 bil-lions of CFA francs between 1990 and2002. The evolution of the economicgrowth became sensitive since 1990.The economic growth passed from3.4% in 1990 to 6.4% in 2002.Benin imports commercial energies(electricity, hydrocarbon…). The na-tional electric production is especiallythermal; a small part is from Yeripaohydropower station, which belongsto Society Beninese of Electric En-ergy (SBEE).The national production is in comple-ment to the importation from ElectricCommunity of Benin (CEB) that is apublic company of Togo and Benin.The relative data to the national pro-duction and to the consumption ofelectricity are presented below in thetable 1.

Table 1 Production and import of electricity in Benin

Années

National production(in MWH)

*Power thermal station SBEE

*Self producer

* Hydro*Production in Yéripao

*Total national productionImport CEB

Total offer (nationalproduction + import) in MWH

Rate (%) of self-sufficiencyin electric energy

Rates yearly means1996 1997 1998 1999 2000 2001 2002 of growth (%) 46890 48674 52869 41895 52234 54319 51339 1.5

nd 8614 23971 27719 30113 10003 10003 3.0

87 1525 1896 1926 1634 1569 1519 -0.1

46977 58813 78736 71540 83981 65891 62861 5.0

264138 283663 255461 326966 374275 456157 532682 12.4

311115 342476 334197 398506 458256 522048 595543 11.4

15.1 17.2 23.5 17.9 18.32 12.6 10.5

(2004 TCDC Training Workshop on SHP Equipment Hangzhou, China)

By Edoun Claudius E. A

Energizing Work Engineer,

General Direction of the Energy


UN Symposium calls on financing agencies to accelerate sustainable hydropower

A major international symposium hascalled for developing countries to begiven easier access to financing in anew drive to encourage sustainablehydropower throughout the world.

The United Nations Symposium onHydropower and Sustainable Devel-opment in Beijing, attended by morethan 500 participants from govern-ment and non-governmenta lorganisations, business and indus-try representatives, environmentaland social scientists and financingagencies, culminated in a consensusstatement. The ‘Beijing Declaration’will now be submitted to the UN Com-mission on Sustainable Development.

The Declaration calls for tangible ac-tion to help developing countries fi-nance sustainable hydropowerthrough loans and grants. It recog-nizes the World Bank and regionaldevelopment banks’ plans to re-engage, but called for similar commit-ments from bilateral agencies to as-sist in the development of affordableand sustainable hydropower. It alsourged developing-country govern-ments to create a favourable environ-ment for co-financing from private

investors, including strengthening “atransparent regulatory framework”.

Participants noted that some two bil-lion people, around one third of theworld’s population, have no accessto electricity, which blights their pros-pects for improvement in water,energy, health, agriculture andbiodiversity. Hydropower can play amajor role in meeting this need, if de-veloped in an economically, sociallyand environmentally sustainablemanner.

The October 27-29 Symposium wasco-hosted by the World Bank, theUnited Nations Department of Eco-nomic and Social Affairs (UNDESA),and the Chinese government’s Na-tional Development and ReformCommission.

The scene was set by a statementfrom UNDESA Under-Secretary-G e n e r a l , J . A . O c a m p o :“ J o h a n n e s b u r g ’ s P l a n o fImplementation, adopted at the WorldSummit on Sustainable Developmentin 2002, calls for an increase in theshare of renewable energy, includinghydropower”. UNDESA Energy and

Transport Chief, Kui-Nang Mak, fur-ther observed that, while much workneeded to be done to add capacity inthe developed world, “the majority ofthe world’s untapped hydropowerpotential exists in the developingcountries”.

The Declaration calls on governmentsand hydro developers to disseminateand observe guidelines on goodpractice.

Noting that only five per cent ofAfrica’s hydropower potential hasbeen tapped, compared to 75 per centin Western Europe, the conferencecalled for regional meetings to fosterbetter appreciation of hydropowerand sustainable development, espe-cially in Africa. This was supportedby the head of the African Union, theUN Economic Commission for Africa,and several African ministerial repre-sentatives attending the Symposium.

In the closing session of theSymposium, Jamal Saghir, World BankDirector of Energy and Water, con-gratulated the International Hydro-power Association on its role in dem-onstrating the sector’s commitmentto sustainable development.

The curves of evolution of the na-tional production of electricity, theimports of electricity, and the rate ofself-sufficiency.

The data of the table 1 permit to noteabove that in spite of a faster growthof the national production of nationalproduction is less than 20%.Benin’s experience is only in a small

hydropower named Yéripao, whichhas the capacity of 500 kW installedextensible at 1 MW. Its first phasewas achieved in 1998.

As one can note it Benin has veryfew experiences in the domain ofhydropower.

Several reasons can explain this state

of things but the main one is insuffi-ciency of financial resources.

There is an inventory currently be-sides 85 flexible sites in small hydro-power achieved by the General Di-rection of the energy in the setting ofthe rural electrification. Financingsare sought-after to do of feasibilitystudies.



Beijing Declaration on Hydropower and

Sustainable Development


1. We, the representatives of na-tional and local governments, rep-resentatives of utilities and the pri-vate sector, United Nationsagencies, multilateral financialinstitutions, other internationalorganizations, non-governmentorganizations, the scientific com-munity and academia, and interna-tional industry associations, hav-ing met at the United Nations Sym-posium on Hydropower and Sus-tainable Development from 27 to29 October 2004, in Beijing, China,reaffirm our shared resolve toachieve Millennium DevelopmentGoals (MDG) and the Sustainabledevelopment goals and targetscontained in Agenda 21 and theJohannesburg Plan of Implemen-tation (JPOI).

2. We reiterate that access to energyis essential to achieving sustain-able development and is critical formeeting the MDGs and JPOI tar-gets and commitments.

3. Noting with concern that 2 billionpeople do not have access toelectricity, we call upon all stake-holders to work in concert to de-liver energy services to all in areliable, affordable and economi-cally viable, socially acceptableand environmentally soundmanner.

4. We emphasise that improving ac-cess to energy will generate op-portunities for economic growth,enhanced education, better healthc a r e , m o r e t r a i n i n g a n demployment, as well as higher pro-ductivity in business, thereby con-tributing to sustained povertyreduction.

Strategic importance of hydropowerfor sustainable development

5. Recalling that the JPOI calls for adiversification of energy supplyand a significant increase in theglobal share of energy from renew-able energy sources, includinghydropower, we note that hydro-power offers potential for contrib-uting to these goals.

6. We further recall that the PoliticalDeclaration adopted at the BonnInternational Conference for Re-newable Energies acknowledgedthat renewable energies, includinghydropower, combined with en-hanced energy efficiency, canc o n t r i b u t e t o s u s t a i n a b l edevelopment, to providing accessto energy, especially for the poor,and to mitigating greenhouse gasemissions.

7. Hydropower represents an impor-tant source of renewable energy,accounting for some 20 % of worldelectricity supply. Hydropowerhas made a contribution todevelopment, as shown in the ex-perience of developed countrieswhere the majority of technicallyand economically feasible hydro-power po ten t i a l has beenexploited, and in some developingcountries, where hydropower hascontributed to poverty reductionand economic growth through re-gional development and expan-sion of industry. In this regard, wenote that two thirds of economi-cally viable hydropower potentialis yet to be tapped and 90% of thispotent ia l i s in developingcountries. In Africa, less than 5 %has been developed. We agree thelarge remaining potential in devel-oping countries, as well as in coun-tries with economies in transition,can be harnessed to bring benefits

to these countries, bearing in mindthat the world’s poor use only onetwenty-fifth of the energy con-sumed by the world’s rich.

8. While we are convinced of the needt o d e v e l o p s u s t a i n a b l ehydropower, along with otheroptions, including the rehabilita-tion of existing facilities and theaddition of hydropower to presentand future water managementsystems, we emphasise that suchdevelopment should be sustain-able from social, economic and en-vironmental standpoints.

9. We underscore the importance ofan integrated approach to damconstruction, bearing in mind thatother than generating electricity,dams often perform multiplefunctions, including supplying wa-ter for irrigation, industrialproduction, and residential use, aswell as flood prevention and habi-tat maintenance. We note withconcern that demands for water inthese areas are already on the riseand competition for water re-sources is most likely to intensifyin future.

Promoting hydropower developmentthat is environmentally friendly, so-cially responsible and economicallyviable10. Having heard expert presenta-

tions on social and environmentaspects, we acknowledge thatprogress has been made bygovernments, financing agenciesand industry in developingpolicies, frameworks and guide-lines which are relevant to indi-vidual country contexts forevaluation of environmental andsocial impacts of hydropower, formitigation of such impacts, and


for addressing the concerns ofvulnerable communities affectedby hydropower development.We also note the many instancesof good practice presented, andcall on governments and the hy-dropower industry to disseminategood practice, policies, frame-works and guidelines, and buildon it to mainstream hydropowerd e v e l o p m e n t t h a t i seconomically, socially and envi-ronmentally sustainable.

11. With respect to social aspects,we note that the key ingredientsof successful resettlement in-c l u d e m i n i m i z a t i o n o fresettlement, commitment to theobjectives of the resettlement bythe developer, rigorous resettle-ment planning with full participa-tion of affected communities,with particular attention to vul-nerable communities. We are en-couraged by the trend of somegovernments to go beyond goodpractice resettlement by provid-ing benefit sharing with hostcommunities and call on govern-ments to consider incorporatingsuch approaches in their legal andregulatory frameworks. We fur-ther call upon Governments andregional and local authorities toaccord special consideration toculturally sensitive areas.

12. With respect to environmentalimpacts, we recognize that somehydropower projects have hadsubstantial adverse impacts onthe environment. Rigorous envi-ronmental impact assessmentand mitigation and managementplans are an essential part of sus-t a i n a b l e h y d r o p o w e rdevelopment. We note thatnorms are now in place for suchassessments and planning, butthat rigorous application of suchnorms is not universal. We callon project owners and govern-ments to strive for good practice

in this important area.13. We call upon Governments to put

in p lace p rocedures tha temphasise the need to plan hy-dropower developments in a riverbasin context and in the contextof the full range of alternativesfor energy production, and thatplanning should give due weightto environmental and socialfactors, as well as economic andfinancial factors.

Hydropower development: investmentchallenges and opportunities14. Noting that hydropower projects

are highly capital intensive, wecall for tangible action to assistdeveloping countries to financesustainable hydropower. Thisshould include both conven-tional multilateral and bilateralloans and guarantees, creditsand grants as appropriate to thelevel of development of the coun-try concerned.

15. Further noting that four-fifths ofinvestment in hydropower in de-veloping countries in the 1990swas financed by the publicsector, we recognize the WorldBank and regional developmentbanks’ plans to re-engage in fi-nancing sustainable hydropowerprojects.

16. We urge Governments to create afavourable environment to attractinvestment for co-financing sus-tainable hydropower projects.We further urge Governments toestablish and strengthen a trans-parent regulatory framework forprivate investment, both domes-tic and international, in hydro-power development.

17. Developing country Governmentsat the meeting call on bilateralagencies to also re-engage ins u s t a i n a b l e h y d r o p o w e rdevelopment.

Hydropower and sustainabledevelopment: the way forward18. Having considered the social, eco-

nomic and environmental dimen-sions of hydropower and its po-tential contribution to achievingsustainable development goals,we firmly believe that there is aneed to develop hydropowerpower that is economically,socially, and environmentallysustainable.

19. Having shared perspectives, ex-periences and best practices fromall regions of the world, we inviteGovernments, United Nationsagencies and other internationalorganizations, international in-dustry associations, and non-governmental organisations, theprivate sector, and civil society,to further address the issue ofhydropower and sustainable de-velopment in appropriate forums,including through regionalmeetings, in Africa in particular.

20. We invite Governments, UnitedNations agencies and other in-ternational organisations andn o n - g o v e r n m e n t a lorganisations, the private sector,industry associations, and civilsociety, to report back to theCommission on Sustainable De-velopment in 2006 on their ac-tions in sustainable developmentof hydropower.

We express our gratitude to the Gov-ernment of the People’s Republic ofChina for successfully organising theSymposium and to the Governmentand people of the People’s Republicof China for the hospitality and warmwelcome extended to all participants.We pledge to work in determined andconcerted action to ensure that sus-tainable hydropower be harnessedfor poverty reduction and for achiev-ing the MDGs and JPOI targets andcommitments.

Adopted at the United Nations Sym-posium on Hydropower and Sustain-able Development, Beijing, China, 29October 2004



Colorado Springs Utilities Small Hydroelectric Project

I Background Information

Colorado Springs Utilities has identi-fied potential small hydroelectricpower development sites as a resultof an earlier reconnaissance study oncandidate projects which use the ex-isting utility raw water supply system.

Five (05) sites were selected to pur-sue further as they appear to offerbenefits to both electric generationand water system operation, and areidentified as follows:

1. Manitou Hydro #3 (~500 kW,construction planned for 2005): Thissite is located just north of theManitou Hydro Plant and substation,just below the parking lot for BarrCamp Trail. The pipeline here is 24-inch diameter. Upstream pressure isabout 250 psig to 270 psig. Flow rateis continuous at about 7 MGD (10.8CFS). Pressure is reduced to atmo-sphere with a 16-inch sleeve valvelocated in a small concrete buildingupstream of the afterbay within a con-crete vault. A manual bypass valveand needle valve are located in a smallbrick building adjacent to the con-crete vault. Transmission line volt-age at the adjacent substation is 34.5kV. This site has great potential fordevelopment of a small hydro due toits ideal location and continuousflow. Based on information from wa-ter operation, flow rate normallyranges from about 6 CFS to 11 CFSand averaged 9 CFS during the pe-riod from 1995 to 2000.2. Cascade Hydro (~500 kW, con-struction planned for 2006): This siteis located on the east side of Cascade,just south of Highway 24. Road ac-cess is good and a transmission lineis near the site. The pipeline is 24-

inch diameter. Flow rate during ourinspection was 3.4 MGD and maxi-mum flow rate here is 7 MGD. Inletpressure was 250 psig but can be ashigh as about 500 psig when the up-stream reservoirs (Crystal andCatamount’s) are at normal levels.The pressure is reduced to atmo-sphere with a 14-inch diameter BaileyPolyjet located within the blue ves-sel that surrounds the polyjet. Theupstream shutoff valve is stampedwith 440 psig maximum working pres-sure which suggests that inlet pres-sure should not normally be allowedto exceed 440 psig for any extendedperiods. A manual needle valve func-tions as the bypass. The bypass canflow no more than 5 MGD. Flow iscontinuous and will be less than thatat the above Manitou location due toadditional flow from French Creekpulled into the pipeline just down-stream of the Cascade Polyjet.

3. Pine Valley Hydro #1 (~1 MW):This PRV station works in series withPine Valley No. 1 and Pine Valley No.2 pressure reducing valves both lo-cated above this station. The pipe-line here is 30-inch diameter. The PRVis a vertical Bailey Polyjet in servicesince about 1968. Estimated maximumflow rate is 80 MGD, with the poten-tial for short term flows as high as100 MGD. Inlet pressure is about 220psig and outlet is atmospheric. Thispipeline serves as a backup to theStanley Canyon Tunnel from RampartReservoir to Tesla Hydro and is there-fore not normally in service. This sta-tion could be placed in service dur-ing high water demand summermonths to allow power regulationwith Tesla Hydro. Currently TeslaHydro runs at full capacity duringhigh water demand periods and can-

not be used for power regulation dur-ing these periods. Transmission linesare located immediately adjacent tothis site and road access is excellent.

The inlet shutoff valve is a 30-inch,Class 300 ball valve with a maximumworking pressure of 740 psig (1700feet). Since the Bailey PRV is verticalwith an existing afterbay, this stationhas good potential for installation ofa small Pelton turbine. Discussionwas held on the possibility of elimi-nating PV No. 1 and PV No. 2, takingall pressure drop through a Peltonrunner located in place of the PV No.3 Bailey Polyjet. However, the exist-ing piping may not be designed tohandle the higher pressures. Notethat any flow through this stationwould bypass Tesla Hydro Facility.

4. Pine Valley Hydro #2 (~900 kW):This station is on a 24-inch pipelinewithin about 200 feet of site 3 above.Pressure is reduced with a horizontal12-inch Bailey Polyjet. Inlet pressureis 360 psig and outlet is nearatmospheric. Flow rate during ourinspection was about 200,000 gal/day(0.3 cfs). Flow is continuous and canbe as high as 13 MGD (20 cfs). Thisstation has no manual bypass. Pri-mary purpose of this pipeline is tosupply firewater to the Tesla HydroFacility. The continuous flow is di-rected from this station into TeslaReservoir via the 108-inch pipelinefrom Tesla Hydro tailrace to TeslaReservoir. Water to this station origi-nates from Northfield Reservoir whichis fed from Rampart Reservoir viaWildcat Gulch.

5. Existing Ruxton Hydro (~1 MW,Built ~ 1926): This existing hydro-electric facility will be evaluated for



possible upgrade or complete re-placement by a new unit to be con-structed adjacent to the existing site.CSU desires to maintain the histori-c a l v a l u e o f R u x t o n h y d r opowerhouse, and the associatedequipment if replacement is the pre-ferred option.All These small hydroelectric facili-ties will be connected to the utilitygrid and operated in a fully automaticmode from a remote control room.Also of prime importance is ensuringthat sizing and operation of these fa-cilities will be economically optimizedwithin the operating patterns of thewater supply system; therefore closecoordination with water operation isessential.

II Goals and GuidelinesOur guidelines for developing smallhydro facilities are summarized asfollows:

1. Develop hydroelectric gen-eration at existing pressurereduction station in the ex-isting raw water deliverysystem at sites that offer themost favorable rates of re-turn on init ial capitalinvestment.

2. Include the developed hy-

droelectric generation sitesas a key component in CSUrenewable energy portfolio.

3. Conduct public process toensure agency and citizen-owner involvement andsupport.

4. Minimize environment im-pacts at each location byu s i n g e x i s t i n ginfrastructure, and minimizecivil construction. No damsor diversions are included inthis project.

5. Maximize safety, simplicity,and reliability at each newhydroelectric generationsite.

6. Maintain existing water de-livery capacities and pres-sure reductions at eachlocation. Reduce mainte-nance requirements for wa-ter delivery.

7. Secure FERC license exemp-tion and any agency ap-provals or permits prior toany development work.

III Engineering Services RequestedThe following is a brief descriptionof the engineering work scopesolicited:

PHASE I1. Reconnaissance Study Review:

Review existing reconnaissancestudy report and confirm find-ings (MW capaci ty , cos testimates).

2. FERC License ExemptionApplication: Assist the owner inthe preparation and support ofan application to FERC for anexemption. CSU currently has anexemption for Ruxton hydro (site5 above).

3. Preliminary Engineering: De-velop preliminary design of thep r o j e c t a n d p l a n f o rimplementation. Prepare cost es-timates and project schedules .

PHASE II1. Detailed Engineering: Pre-pare final designs, drawings,specifications, constructiondocuments for furnishing andinstalling the hydroelectricequipment for the power plantfacility.2. Construction and Start upSupport: Provide assistance asneeded to support constructionand start up activities.


On 16 Auguest 1996 the RuralEnergy Develoment Programme(REDP) was initiated with the aim ofimproving livelihoods of rural peopleand pressrving the environmentthrough the promotion of rural energysystems. The Programme is run bythe United Nations DeelopmentProgramme and His Majesty’s Gov-ernment of Nepal.

As of July 2004, the Programehas been directly responsible for theinstallation of 132 micro-hydro

systems,3,486 bio-gas facilities withattached toilets, 1,666 solar homesystems, 7,407 improved cookingstoves and 12,111 toilets. It has alsobeen responsible for establishing anumber of enterprise developmentand institutional developmentmatters.

In addition to the local supplyof power, this Programme hasbenefied the rural communities ofNepal in many other ways. Some ex-amples include enhancing rural live-

lihoods by increasing income forfamilies, improving health, improvingeducation and awareness, helpingvillagers with capital formation to putto towards income generatingenterprises, reducing greenhouse gasemissions, and community building.

To find out information aboutthis highly successful Programme,vistit the Rural Energy DevelopmentProgramme website.

http://www.redp.org.np/.

Rural Energy Development Programme-Nepal


Design Considerations for Hydropower Development In a

Water Distribution System

ByDavid P. Chamberlain, Ed Stewart,Fei-Fan Yeh and Michael T. StiftSan Diego County Water Authority,San Diego, California, USA

ABSTRACTInstallation of a hydraulic turbinein a water distribution system involv-ing long pipeline reaches requiress e v e r a l u n i q u e d e s i g nconsiderations. For a fixed speedunit, the selection of design pointsfor head and flow needs to be opti-mized to provide an operating enve-lope that would maximize the returnon the investment given the widelyvaried flow and pressure conditionsimposed by the water distributionsystem. The selection of a turbinedesign speed is essential in facilitat-ing runner design, which must mini-mize the hydraulic pressure tran-sients on turbine runaway that mayresult in overstressing the existingpipelines. Method and approach toevaluate these considerations areoutlined. Relevant results for the se-lected design are presented using the4.3 MW Rancho Penasquitos Pres-sure Control/Hydroelectric Facilityas an illustrative example. Licens-ing requirements for small inline hy-droelectric facilities are also brieflydiscussed.

IntroductionThe potential for power recovery froma water distribution system existswhenever water flows from a highpressure to a low pressure in such amanner that throttling occurs. SanDiego County Water Authority(Water Authority) currently importsabout 320,000 acre-feet of untreatedwater per year through a gravity flowdistribution system consisting ofabout 270 miles of pipeline. As aresult, this system requires several in-line pressure control facilities de-signed to regulate pressure and flow.These in-line facilities are potentialsites for the installation of an inlinehydropower recovery turbine. TheWa t e r A u t h o r i t y ’ s R a n c h oPenasquitos Pressure Control/Hy-droelectric Facility (PCHF) is the larg-est facility of this kind in the system.

The PCHF is geographically locatedin the central part of San DiegoCounty, within the northern city lim-its of the City of San Diego. The PCHFis connected to the Water Authority’sPipeline 5, which is a 108-inch diam-eter cement mortar lined and coatedsteel pipeline having an overall lengthof about 21.6 miles. Pipeline 5 sup-plies untreated water to a number oflocal municipal water treatment plantsunder gravity flow, and is vented toatmosphere at several high points. Aspart of the PCHF project, Pipeline 5will be converted to pressurized flowraising the hydraulic grade line up-stream of the facility.

The Water Authority has developedthe PCHF, currently under design, toconsist of three 42- inch diameter

sleeve valves and one 4.3 mega-watt(MW) Francis turbine (Black &Veatch, 1996). Three sleeve valves willprovide the required pressure andflow control up to 620 cubic feet persecond (cfs). Additionally, the hydro-electric turbine generator will provideflow control up to 315 cfs and alsorecover the energy either for sale tothe electric grid or used to offset theenergy requirements of operating theWater Authority’s and its memberagencies’ pumping and filtrationfacilities. The earned power revenuewould be used to amortize the capitalcost of the generating facility and tooffset the Water Authority’s operat-ing and maintenance costs.

The operating flow and availablepressure gradient at the PCHF will bea function of the upstream hydrauliccontrol facility and the untreated wa-ter demands in the Water Authority’saqueduct pipeline system locatednorth and south of the PCHF. Duringnormal operations, either the sleevevalves or the turbine generator (orboth) would be used to control theflow and pressure. The planned PCHFconfiguration will allow the turbineto tap only the flows south of thePCHF in Pipeline 5, which serves pri-marily the demands at the Miramar,Alvarado, Otay and Sweetwater fil-tration plants. The upstream hydrau-lic control is the Twin Oaks ValleyDiversion Structure, which is a 22million gallon reservoir with a normaloperating water surface elevation of1088 feet above mean sea level (MSL).Downstream hydraulic grade line con-trol is provided by an open vent struc-ture (the Miramar Hill Vent Structure),



which is maintained at a constantoperating elevation of 825 feet MSL.Therefore, the normal maximum grossavailable head for the turbine genera-tor at the PCHF would be 263 feet.Maximum Power AvailableThe available power P for a turbine isthe product of the net head H andflow Q. As the net head is the grosshead Hg minus the friction head lossHf that is a function of the flowsquared Q2 in accordance with eitherthe Darcy-Weisbach formula or theManning formula, the available powerP is then a function of Q. Taking thefirst derivative of P with Q and equat-ing to zero, an arithmetical derivationfor a constant Hg determines that themaximum power Pmax is availablewhen Q is equal to the square root of1/3 times the maximum flow Qmax ,which is defined as the flow thatwould result in Hf equal to Hg.Using the PCHF data as an example:Gross head, Hg = 263 feet,Length of Pipeline 5, L = 21.6 miles,Diameter of Pipeline 5, D = 9.0 feet,andDarcy’s f = 0.0108 or Manning’s n =0.0110The maximum flow Qmax that can besustained by the 263-foot gross headis found to be 710.5 cfs using eitherthe Darcy-Weisbach or Manningformula. The maximum power wouldoccur when the flow, Qmax power, is:

At a flow of 410.2 cfs, the correspond-ing net head at the PCHF is 175.3 feet,and the maximum generator outputwould be 5.16 MW if the design full-gate efficiency of the turbine and thegenerator efficiency at the full-gatepower were 0 .87 and 0 .975,respectively. This design would maxi-mize the power and energy produc-tion if, and only if, the operating flow

can be set at a near constant rate ofabout 410.2 cfs. In fact, this ideal de-sign scenario may apply if a sizabledownstream reservoir would exist andthe constant power inflow could beregulated to meet the variable down-stream demands. Furthermore, in thissituation the turbine could be over-sized to allow the constant power flowoperated at or near to the best effi-ciency point if the marginal benefit-cost ratio were greater than one, i.e.the incremental power revenue wouldbe greater than the incremental costof additional capital investment.

Unfortunately, the downstream hy-draulic grade line control for the PCHFis set at the Miramar Hill Vent Struc-ture with zero storage capacity. Theflows at the PCHF vary significantlyon a daily basis and are stochasti-cally dependent upon the daily de-mands and the availability of localwater resources at the municipal fil-tration plants located upstream anddownstream of the PCHF. A turbinedesigned to generate the maximumpower may not be economically jus-tified because numerous low flowswould have to bypass the turbine andallow the energy of highpressureheads being wasted through thesleeve valves.

Considerations in Turbine SelectionFor a fixed speed unit, the turbine canonly operate within a certain operat-ing envelope, in which the allowableranges of heads and flows areprescribed. Theoretically, a variablespeed unit or two units of equal ordifferent size would increase the op-erating ranges and efficiencies tomaximize the power and energyproduction. However, these arrange-ment would increase unit capital costand overall complexity in operation.In this context, the criterion require-ment is that the selection of turbine

capacity and number of units needsto be optimized to maximize the re-turn on the initial investment, and notthe maximum power and energyproduction.The ultimate turbine selection is aneconomic decision that depends onthe range of expected operating flowsand heads based on future water de-mand projection and the percent oftime that these heads and flows areexpected to occur. Economicjustification, including the requiredreturn or payback for the capitalinvestment, is determined by compar-ing the projected value of the energygenerated during the economic life ofthe facility to the capital cost ofprocuring, installing, and maintainingthe facility for the same period of time.The process used is essentially aniterative process, which requires acomputer simulation of power opera-tion for a number of turbine designalternatives, and follows with a cash-flow analysis of the cost and benefitfor each alternative to identify theultimate selection that best meets thecriterion requirement.

The following outlines the methodand approach employed by the Wa-ter Authority to confirm the selectionof a 4.3 MW Francis turbine at thePCHF.1. Economic Life: The economic lifewas set at 20 years, which representsthe book life over which the capitalcost of construction would be recov-ered from the debt service payments.Whereas the physical life of the hy-droelectric facility may be over 50years, the choice of 20 years reflectsthe insignificant economic value dis-counted over a longer period, the lim-ited faith in long-term projection, andthe Water Authority’s conservativefiscal policy.2. Daily Flow Projection and Sys-tem Hydraulic Analysis: The average



daily flow is considered adequate forthe power operation study at thePCHF, as the diurnal variation of thedaily untreated water demand is smalland practically nil. Historical dailyflows and demands in recent yearswere collected. Future water demandprojections were developed from thehistorical data, population growthprojections, and regional develop-ment plans. The future demand pro-jections were prorated based on thehistorical daily data to generate thefuture daily flow sequences for usein the power operation. As the fric-tion loss is a vital design consider-ation for long upstream conveyancepipelines of large diameter, the Darcy-Weisbach equation, was used to pro-vide the needed accuracy. Values ofDarcy’s f vary with the pipe rugosity,diameter, flow and water temperature,and can be calculated using spread-sheet formula considering eachvariable. Ranges of rugosity valuesfor a variety of pipe materials werepublished elsewhere (US BuRec,1977) and are supported with exten-sive field and experimental evidence.As Pipeline 5 is a mortar-lined steelpipe, an average rugosity of 0.000325feet was adopted for the purpose ofpower operation study, while themaximum and minimum rugosity val-ues were often used for required con-servatism for designs and hydraulictransient analysis.3. Development of Turbine DesignAl t e rna t i ve s and Opera t ingEnvelopes: Based on the ranges ofoperating heads and flows expectedover the 20-year period, a number ofviable turbine design alternativeswere developed to include number ofunits, unit design head, flow and ro-tational speed. An operating enve-lope (or a head-flow-capacity-effi-ciency relationship) was then estab-lished for each design alternative con-sidering the specific speed and the

operating limits due to cavitation andlow efficiency. Preliminary engineer-ing was also prepared to estimate theturbine dimensions and the civil/structure space requirements neededfor the cost estimate.4. Power Operation Study: A FOR-TRAN computer program was codedto simulate the daily power operationusing the operating envelope and theprojected daily flow sequences as theinputs. The program calculated, on adaily basis, the power flow, bypassflow, net head, turbine efficiency andturbine output capacity for each de-sign alternative. The output data werethen transferred to a spreadsheet forreprocessing the monthly and yearlysummaries.5. Economic Analysis: This is a cash-flow spreadsheet program, whichanalyzes the cost and benefit streamsover the 20-year economic life toevaluate the economic parameters,including internal rate of return (IRR),net present value (NPV) and paybackperiod. A 20- year municipal bond is-sue with a coupon rate of 5.0 percentwas assumed to finance 100 percentof the incremental capital cost. Incre-mental capital cost was calculated byfirst estimating the direct cost of theequipments and civil/structure fea-tures at the level of vendors andcontractors, and then applying allow-ances to cover the indirect costs. In-cremental costs are defined as those

additional costs that would resultfrom incorporating hydroelectric gen-erating capability into the plannedpressure control facility at the PCHF.Annual operating and maintenance(O&M) costs were estimated basedon the experience of similar installedcapacity, and then escalated 3 per-cent annually. Market clearing pricesforecast by California Energy Com-mission for the years 2000 through2010 were used as the values of theenergy for the initial seven years ofoperation starting in 2004. The energyvalues after the year 2010 were as-sumed to increase at an annual esca-lation rate of 1.5 percent.

Using the above methodology, asingle 4.3 MW Francis unit has beenselected for the PCHF operatingconditions. The operating envelopeused for this selection, together withthe daily generation data for selectedyears are shown in Figures 1 and 2.The power operation assumed a con-servative limit of operating capacityup to 110 percent of the design ca-pacity at full gate and a limit of oper-ating flow up to 105 percent of thedesign discharge. The generationdata for year 2023 in Figure 2 tend tospread into the lower head regionbecause the increase of future un-treated water demands effectively re-duce the net heads available forgeneration.The pertinent design data



and dimensions for the selected tur-bine are given in Table 1.

The economic results for a cash-flowanalysis including energy values,O&M costs, debt service, interestpayment, internal rate of return (IRR),and net present value (NPV) are sum-marized for selected years, as shownin Table 2. Capital investmant for thefacility is estimated at $8.8 million. Allmonetary values are in $1,000 incre-ment with the exception of energyvalues, which is in $/MWHr. The re-sulting payback period is between 11and 12 years, or when the NPV or thecumulative cash flow becomespositive.The power operation study resultsshow that the average annual gen-eration ranges from 33,007 MWhr inyear 2004 to 30,765 MWhr in year2023. These values represent a plantfactor varying from 87 percent to 80percent. High plant factor implieshigh utilization of the available flow,and is another indication that the tur-bine selection has been reasonablyoptimized.

Considerations in Hydraulic Tran-sientsTransient flow can generally be di-vided into controlled and uncon-trolled transient flows. The controlledtransient flows are planned flowchanges, such as line startup byopening and closing of controlvalves, valve stroking to adjust flows,turbine startup, turbine shutdown, oradjustments in turbine flows for in-creasing or decreasing powergeneration. Planned flow changes areconsidered orderly changes of theturbine or control valve settings, andwill take the operation from onesteady state condition to anothersteady state condition through tran-sient flow in a controlled manner.



During normal startup and shutdownof the turbine unit at PCHF, one ortwo of the 42-inch sleeve valves willbe used to close or open in synchro-nous operation with the turbinewicket gates. Ideally, the net changein flow may be reduced to zero bymatching the discharge characteris-tics of the sleeve valve with that ofthe turbine. However, this is usuallynot possible because of the non-lin-ear flow characteristics of the turbineand valves, and because of the deadtime, or delay time, between the open-ing (or closing) of the valves and theclosing (or opening) of the wicketgates. A preliminary computer simu-lation of this operation at the PCHFindicated that if the valve full stroketime is longer than 15 - 20 minutes,then the transient pressure rise ordrop can be minimized.

Uncontrolled transient flows are un-planned flow changes, such ascaused by a sudden load rejection ofthe turbine due to earthquake or otherevents, when the generator is discon-nected from the electric grid whilepower is being generated. Becausethe small inertia of the turbine/gen-erator in relation to the water columnin a long pipeline, the rotational speedof the turbine will increase from thesynchronous speed to a runawayspeed that could approach nearly 180percent of the synchronous speed.Runaway is generally not a signifi-cant problem to the turbine orgenerator, since both can be de-signed to withstand this condition.However, the flow through a Francisturbine may be seriously affected bythe high runaway speed. This flowchange upon runaway could producecritical transient pressure conditionsin the upstream and downstream pipe-lines since most water distributionsystems are not routinely designedfor such event. Surge tanks could be

incorporated in the design to limit thehydraulic transients effect, but theyare expensive and an appropriate sitefor the tank may not be obtainable.Synchronized flow bypass using con-trol valves is not considered reliablefor the emergency operation becauseof an unacceptable risk of mechani-cal failure.

Study (Harza, 1976) has shown thatthe change in turbine discharge onrunaway depends on the design spe-cific speed at full gate. A low specificspeed turbine causes a throttling ef-fect on flow, which would create hightransient pressure upstream of theturbines. Similarly, a high specificspeed turbine would cause a flowincrease, which would create hightransient pressure downstream of theturbine. The following is a plot ofHitachi experience curve, togetherwith Francis turbine model test dataand the associated trend line.

It appears that the zero change in flowcould be technically feasible for a

specific speed ranging from 62 – 80at full gate, which depends on indi-vidual manufacturer’s runner design.Therefore, one way to minimize thetransient pressure impacts would beto require in turbine bid specificationsa special provision for limiting thedischarge change upon runaway,such as ± 5 percent to ±10 percent offull-gate design discharge. The biddocuments should describe the tur-bine setting and the upstream anddownstream head variations, and thedesign rotational speed should be leftopen to the bidders’ choice, to allowmanufacturers full flexibility to offerdesigns that will best meet the spe-cial provision on flow change. Modeltest should be required to providetesting data points near the runawayspeed, which must have the dischargecharacteristics within the specifiedlimits. A computer simulation usingthe model test characteristics shouldbe performed, prior to a field test, toconfirm that the transient pressuresgenerated by a full-load rejectionwithout synchronous bypass opera-



tion would not exceed the pipe de-sign limits.

As the mechanical and electricalequipments constitute up to 85 per-cent of the total construction cost, itis also necessary to have thorough,complete, and unchanged specifica-tions for the turbine generator pre-pared well in advance of the final de-sign for civilstructure components.Vendor drawings are required for thecompletion of the civil-structure de-sign so that all civil-structure com-ponents would accommodate the tur-bine and other equipment design.

FERC Licensing ConsiderationsThe Federal Energy Regulatory Com-mission (FERC) may issue a conduitexemption license for a generatingcapacity up to 40 MW for a munici-pal project on an existing conduit. ThePCHF would qualify for a conduit ex-emption not only under the capacitycriterion, but also meeting the othercriteria in that: (1) the conduit wouldbe constructed even if the hydroelec-tric facility were not; (2) the projectwill be located on property in whichthe Authority holds real propertyinterest; (3) the project will dischargeinto a water supply pipeline and willnot rely on the construction of a dam;and (4) power generation will be asecondary usage of the project water.

The exemption process will require aninitial consultation, in which an Ini-tial Consultation Package (ICP) wouldbe prepared in accordance with 18CFR 4.38, and a Draft Exemption Ap-plication would be prepared in accor-dance with 18 CFR 4.92. The ICP andthe Draft Exemption Applicationwould be distributed to the resourcesagencies for review and comments. Ifall the issues can be settled and the

Draft Exemption Application is re-vised to incorporate agencies’ sub-stantive comments, the revised DraftExemption Application represents theFinal Exemption Application, whichwill be filed with FERC. FERC wouldthen issue a public notice, and if therewere no intervention, the conduit ex-emption license may be issued in amatter of few months. Recent consul-tation with FERC staff has indicatedthat an application for exemption fora 39.6 MW installed capacity plantwas approved by FERC in about twomonths.

ConclusionDevelopment of small hydroelectricfacilities on water distribution sys-tems is a small but significant step topromoting renewable sources of pol-lution-free power. A conduit hydro-electric facility is environmentallypreferable to many other types ofgeneration because it does not pro-duce carbon dioxide, NOx, SOx, orother potentially harmful particulatesthat are major contributors to variouspollution problems in an urbanenvironment, and therefore, shouldbe considered a genuine “greenpower” project. Fast implementation,long project life, zero fuel cost, andfreedom from price volatility of fossilfuels should make similar conduit hy-droelectric facilities an economicproject in a competitive open market.

References

Black & Veatch Corporation, “Hy-droelectric Feasibility Study forPipelines 6 and 5EII”, a draft reportprepared for the San Diego CountyWater Authority, 1996.

US Bureau of Reclamation, “Fric-tion Factors for Large ConduitsFlowing Full”, Engineering Mono-graph No. 7, July 1977.

Harza Engineering Company, “Dis-charge of Francis Turbines at Run-away Speed”, a study report pre-pared for the Metropolitan WaterDistrict of Southern California, June1976

Authors

Dave P. Chamberlain, P.E., is a se-nior engineer at the San DiegoCounty Water Authority. He is theProject Manager for the RanchoPenasquitos Pressure Control/Hy-droelectric Facility and is respon-sible for managing other major Capi-tal Improvement Projects.

Ed Stewart, P.E., is a principal engi-neer at the San Diego County WaterAuthority. He is a manager ofprojects, responsible for the RanchoPenasquitos Pressure Control/Hy-droelectric Facility and other Capi-tal Improvement Projects.

Fei-Fan Yeh, P.E., is a contract con-sultant from Washington Infrastruc-ture Services, Inc. to the San DiegoCounty Water Authority, providingtechnical assistance in the planning,design, engineering and construc-tion of hydropower and pumped stor-age facilities.

Michael T. Stift, P.E., is the AssistantDirector of Engineering at the SanDiego County Water Authority. Heis responsible for the administrationof the Engineering Department andmanagement of all aspects of theCapital Improvement Program.



Letter to the Editor

Dear Sir

I will be delighted if you could offer me a space in your quarterly publication (SHP NEWS) to express my sincere

appreciation and gratitude, firs to my employer, National Electric Power Authority ( Nigeria) for giving me the opportu-

nity to be in China as a participant for the 2004 TCDC International training Workshop on Small Hydro Power and

Equipment at HRC. My Sincere appreciation also goes to the Government of the People’s Republic of China by her

mutual thinking to provide financial support to this Center, through the Ministry of Water Resource of China and

Ministry of Foreign Trade and Economic Cooperation, to be organizing this International Workshop since 20 years

ago.

I will not forget to mention the eminent financial support given by the UNDP, UNIDO since establishment of this

Center in 1981. I hope they will give more support to the Center, because the world community especially the develop-

ing countries will never forget the important role HRC played in providing technical information on small hydropower

design which now leads to finding solution to the rural electrification problems in the developing nations. People says

seeing is believing who ever is opportune to attend this international training will believe me that China has made a

tremendous progress in the area of small hydro, how ever China being No.1 in the world in small hydro power

development is not just by chance I will repeat once again seeing is believing.

During the training workshop I was highly impress with the lectures delivered by both the HRC engineers and the

invited guest lecturers, also the facilities in placed for the training are relatively ok for such a training, the study tour is

well organized, we have received a warm welcome by all the small hydro power stations visited, plant and electrical

manufacturers, I want to be specific here the CHINT electrical and equipment manufacture deserve a credit for their

kind gesture.

A credit marks also goes to all HRC staff especially the coordinators in person of Mr. Pan Daqing, Ms. Shen

Xuequn, Mr. Wuhao is not left behind he gave us a company all the time, the HRC Deputy Director Ms. Cheng Xialei

which despite of her official commitment also traveled with us during the study tour and then the chief overall

coordinator, the Director HRC, Mr. Chen ShengShui. In conclusion I congratulate HRC for the successfull coordina-

tion of 2004 TCDC international training workshop, the course is not only a medium for information exchange between

China and the developing countries, but also it enhance cordial relationship/friendship among the developing countries,

the participant and the entire Chinese community.

Thanks

Mamuda Abdullahi

National Electric Power Authority

Cooperate Headquarters

Nigeria

Nov., 11, 2004

The Editor, SHP NewsHRC, China.

Strategic Measures and Incentive Policies of SHP in China

Documents

Transcript of Strategic Measures and Incentive Policies of SHP in China