Assessing the Profitability of Changing a Turbine for a Hydroelectric Power Plant Based on Long-Period Water Gauge Readings
The chapter focuses on explaining the construction of author's own engineering-level model which calculates energy production based on historical water level and flow rate readings as well as economic factors such as net present value of the proposed investment on the example of a HPP on the Wkra River. The model methodology assumes the identification of location's hydrological features and translates them into a set of contingency scenarios. Various internal costs, such as maintenance or labor costs, related to normal HPP activity and taxation are discussed and incorporated into the economic part of the model. Test case results indicate that for a series of good years in terms of water flow and electricity production, full repayment of initial investment costs is possible after less than three years. Results for the chosen modernization parameters indicate that within 10 years of installing a new turbine, even the most pessimistic case would bring added value to the real estate valuation.