Introduction to Brascan Asset Management - Clean Energy BC

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Nov 18, 2013 (3 years and 8 months ago)

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Generate 2010: ‘Getting it Done’


Small Hydro Development


Technical Basics

7 November, 2010

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Small Hydro


Technical Basics



Independent Power Producer (IPP) Development Process


Permitting


Consultation


Design
-

Costing


Sale of power to BC Hydro


Financial



Characteristics of a Run of River Hydro Project


Hydrology


Physics


Main components: Intake, Penstock, Turbine
-
Generator, Powerhouse, Sub
-
station


System control

“Hydro 101” Syllabus

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Small Hydro


IPP Development Process

Typical IPP Development Sequence

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Permitting



Design/Costing



Electricity sales



Financing

Small Hydro


IPP Development Sequence

Process
-

Simplified

Development Phase

Construction

Operations

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Minister of Aboriginal Relations and Reconciliation

Small Hydro


Permitting




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Minister of Aboriginal Relations and Reconciliation

Small Hydro


Permitting





First Nations


Partnership and ownership


Benefits agreements and employment



Stakeholders


Local politicians, interest groups (e.g. recreation clubs, contractors, etc.)


Overlapping tenure holders; forestry, mining, water licence holders



Consultation


Early and regularly

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Small Hydro


Design / Costing




Design/Costing Progression

Pre
-
feasibility

study

Feasibility

study

Detailed

design

Costs increasing

Uncertainty decreasing

Hydrology Data Collection

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Minister of Aboriginal Relations and Reconciliation

Small Hydro


Electricity Sales





Three different options


Calls for Power


Intermittent


Larger projects


Rules, conditions and terms vary


Competitive bid process


Standing Offer Program (SOP)


Recently revised

-

Price $99/MWh

-

Size limit 10 MW


Proposals are accepted anytime


Net Metering


Small: <50 kW



Electricity sales to BC Hydro

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Minister of Aboriginal Relations and Reconciliation

Small Hydro


Pricing




Time of Year


Time of Day

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Minister of Aboriginal Relations and Reconciliation

Small Hydro


Pro Forma




Financing


Financial Model


Revenue and cost projections for 20
-
40 years


Discounted cash flow to calculate Return on Investment


Hurdle rate is minimum acceptable ROI.



Leveraging


60/40 or 80/20 Debt/Equity


Increase Return on Equity



Debt Coverage Ratio


Varies


Will impact leveraging



Term


Equity goes in first


Full draw down


Construction loan take out



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Permitting



Design/Costing



Electricity sales



Financing

Small Hydro


IPP Development Sequence

Penultimate Step

Development Phase

Construction

Operations

GO or

NO GO

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Minister of Aboriginal Relations and Reconciliation

Small Hydro


Overview




Main Components

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Small Hydro


Overview




Physics


Power (kW) = Flow (m
3
/s) x Head (m) x Efficiency x Gravitational Constant

x 9.81 m/s
2



4 m
3
/s x 275 m x 0.75 x 9.81 m/s
2

= 8,100 kW (8.1 MW)



Energy (kWhr) = Power (kW) x Time (hr)



Plant Factor = Actual Annual Energy / Theoretical Maximum Annual Energy


31,540 MWhr/yr / (8.1 MW x 8,760 hr/yr) = 45%



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Small Hydro


Overview




Considerations for hydro site selection


Hydrology


Low elevation with winter flow


Lake in upper watershed


Infrastructure


Existing roads


Close to grid


Location


Not in recreation park or special area


Proximity to town


Geotechnical conditions


Environment


Fish, anadromous and resident


Rare plant or animal species


Other users


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Small Hydro


Overview




Hydrology
-

Watershed

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Small Hydro


Overview




Hydrology


Synthetic Flow Record

REAL TIME FLOW DATA


OVERLAPPING PERIOD WITH LONG TERM FLOW DATA


DEVELOPMENT OF RELATIONSHIP FOR CONCURRENT DATA


APPLY RELATIONSHIP TO LONG TERM FLOW DATA


SYNTHETIC FLOW STRING



Average daily flows in m
3
/sec

1 year real time data


minimum

20 year synthetic flow string
-

minimum


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Small Hydro


Overview




Hydrology

0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Jan
Jan
Feb
Feb
Mar
Mar
Apr
Apr
May
Jun
Jun
Jul
Jul
Aug
Aug
Sep
Sep
Oct
Nov
Nov
Dec
Dec
FLOW (cms)
Average Baseline Flow
Average Scenario Flow
MAD
Power Flow = River Flow


IFR

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Small Hydro


Overview




Main Components
-

Intake


Functions


Direct water into penstock


Allow instream flow release (IFR), surplus water to pass downstream


Allow debris to pass downstream


Allow fish to pass upstream, downstream


Keep air, fish and debris out of penstock


Parts


Weir


sluicegate and spillway


Headpond


Trashrack, intake chamber and bellmouth, gate


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Small Hydro


Overview




Main Components


Rubber Dam Intake

Rutherford Creek Hydro Project

Innergex Renewable Energy Inc.

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Main Components


Coanda Intake

Small Hydro


Overview

Brandywine Creek Hydro Project

Run of River Power

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Main Components


Penstock

Small Hydro


Overview


Materials


Low Pressure: HDPE, Steel, Other


High Pressure: Steel



Buried


Safe and unobtrusive


Trenching may be difficult


Drainage



Surface


Requires anchor blocks and pedestals


Creates a barrier


May be easier to install



Highest Cost


Highest risk component of a run of
river hydro project


Sechelt Creek Hydro Project

Regional Power

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Main Components


Turbines

Small Hydro


Overview

High Head
-

Low Flow


Pelton


Low Head


High Flow


Francis


Kaplan


Smaller Units


Turgo


Crossflow


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Main Components


Pelton Turbine

Small Hydro


Overview


High Head
-

Low Flow



Relatively Flat Efficiency
Curve



Instantaneous Flow Bypass






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Main Components


Pelton Turbine

Small Hydro


Overview

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Main Components


Francis Turbine

Small Hydro


Overview


Low Head
-

High Flow



Peaked efficiency curve



High maximum efficiency



Flow bypass valve required






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Main Components


Francis Turbine

Small Hydro


Overview

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Main Components


Powerhouse

Small Hydro


Overview


House turbines, generators and
ancillary equipment



Control System



Tailrace returns water to river



Good road access required





Soo River Hydro Project

Summit Power Corp.

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Main Components


Sub
-
Station and Transmission Line

Small Hydro


Overview


Beside powerhouse



Step
-
up transformer



Circuit breaker



Transmission line to point of
interconnection



Typical Voltages 25 kV, 69 kV, 138 kV





Doran
-
Taylor Project

Summit Power Corp.

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Control System

Small Hydro


Overview


Highly automated


Remote monitoring and control


Daily site visits



PLC controlled in powerhouse


Inputs/Outputs from intake, turbine, generator, BC Hydro and others


Grid connected no load following



Turbine speed constant



Generator voltage and frequency constant



River flow varies


River flow


IFR = Power flow


As river flow increases, power flow increases to design maximum


Power and energy are dictated by river flow








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Small Hydro


Development Basics

Questions?