When the total value of the installation of US$ 8.9MM is divided by the power actually generated, 1800 kWh, cost is US$4.955,00 per kWh
The CARE technology considers that the generated energy is practically equivalent to the installed capacity. However conservatively, 90% is used for comparison.
The turbines were designed so the rotor output is always equal to or superior to the maximum rotation of the generator and also its length allows the greater volume of the river flow to pressure the blades attached to its perimeter there by providing torque superior to that necessary for maximum power generation. Therefore the excess of hydraulic power keeps the generators at full power output or the installed rate even if there is a reduction of the water flow. The conclusion is that the potential power installed is what the generators will produce .
Another important factor is the mechanical power lost is minimum because the generator is connected directly to the turbine axel. For these and other reasons the potential and real power generation of a CARE unit are practically equal and therefore influences the cost of the kW installed resulting in a much more favorable cost / return relation.
Other important factors that should be considered in determining the economic feasibility of the system are:
- Installations can be totally controlled by satellite eliminating on site staff.
- The time necessary between preparing the project, manufacture of the parts , assembling at the site and
start up depending on the potential desired is approximately 12 months. This time frame will be
substantially reduced when the manufacturing process is placed on assembly line technology.
- No land is flooded therefore there are no compensation costs or cost of relocation local wild life.
- The river flow and the river bed remain unaltered.
- Fences are not installed therefore the material contained in a rivers bed continues to flow leaving down river conditions constant and unchanged and ecologically sound.
- Units can be located successively down stream in the same river which naturally increases the generating potential in a specific area or down stream from an existing dam .
- Units can be placed close to areas of consumption farms, factories , resorts , mining operations etc.
For a budget to reflect its objective which is a close approximation of the real costs. In the case of CARE where the environment is not destroyed or changed the natural conditions at the potential site at the point of generation is a factor that will influence the selection of the installation.
In order to properly and accurately develop a project it is essential that information with respect to flow conditions at high and low water are available, the height of the river banks depth of the river and other pertinent information are available to develop a secure budget or cost projection and to properly project the profit potential.
In spit of the fact that the units are manufactured in sections it is important to always keep in mind that each site requires
at the site selected.
a specific project. This because the size of the turbines will vary according the flow in m3/sec. and the width of the river
t is important to bear in mind that each project is distinct having specific characteristics’ in spit of the fact that the system is modular This confirms that the size of the turbines has a direct influence on the energy generated as well as the return on the investment.
The fact that it is possible to install units successively down river contributes to lowering cost of manufacturing as well as allotting installation cost to various units. Also with respect to distribution costs if such is a factor to be considered the ability to place units close to consumption is also a favorable factor.
As part of the cost projections that follow a 10% leeway has been adopted because the costs that are shown under Civil Construction and Annual Costs are estimated. All other items were all budgeted the Brazilian or international market.
In order to properly evaluate the economic reality of the technology the reader should take two very important points into consideration
The first is the time factor: Depending on the local conditions at the site of installation of a generator and the desired potential it is estimated that a 1000kWh unit from the moment the site is approved will take approximately six to eight months especially with the first units. Naturally this reflects very favorably on the capital return considerations especially when compared with hydro installation that take at least three years
The second point is that various units can be installed in the
same river area. Units must respect a distance that allows the water to return to its natural flow after being oxygenated as it passed thorough the turbine blades.
All local conditions must be confirmed and a visit to the potential site by CARE personnel is necessary. However accurate information with respect to high and low annual level in dry and wet seasons are the factors of prime importance
THE COST PROJECTION
The cost projection that may be solicited demonstrates that the cost of a 1 MWH operating 350 days per year for 30 years .
The ideal river conditions for the installation of the example presented in the cost projection is an average flow of 50m3/sec. with a width of approximately 44 meters and river banks of up to 3 meters.
The cost projection confirms that value of the kWh installed varies in accordance with the total power installed. If the installed potential is greater in scale the cost of a kWh is less and if the if installed generation is lower the cost for kWh will be higher.
The cost projection sheet provides or permits the user to alter at has selection the percent of financing which automatically reflects in the final results.
The interest value found in section 13 of 0% corresponds to the capital necessary to place a unit in operation . This percentage can be altered . The total value of financing paid monthly , if any, is shown in cell 147
The resulting Profit X Cost relation at 0% financing is expressed on in cell 171 . This number can be interpreted to
mean that it reflects the gross income from generation less operating costs and working capital at total cost
Once the annalist has determined the values to be inserted into the white spaces the cost of kWh installed appears in (D72) and the MWH in (D73)
The values to be applied for working capital , contingencies, labor and contracted third parties should be determined by the investor . These values will vary from region to region and country to country.
Included in the costs for the first unit are the cost of the forms used to produce concrete parts however such parts can be charged to other installations .Such values are automatically if the number of installation is modified.
The presentation does not take into consideration such items as taxes, specific charges to energy generation because such cost depend on the geographic location of the unit as well as the business structure or organization to be employed
Eng Wilsom Pierazoli