Revenue

The revenue of an hydroelectric station basically depends on the Effective head at meanflow and the disposable quantity of water. We can determine the quantity of water by an hydrological survey. For bigger rivers normally long-standing level-records are available. Further the legal situation (conceded quantity of available water, quantity of residual water) is important.

The Effective head at meanflow should be generally checked on-site, because old documents often contain wrong information. Mostly we have to carry out a hydraulic calculation with a duration curve of the Effective head at meanflow as the result. In that way we get information about interdependences between the river discharge and the up- and downstream level.

The result of the calculations is a plan of water-economic capability with a theoretically achievable annual work. Based on experiences this will be reduced by times of stoppage (maintenance, water shortage, floods, ice drift, expenditure of energy of the plant itself).

The reimbursement per kWh is determined by legal regulations (in Germany: Renewable Energy Law), own energy consumption and possible sales prices.

Investment Costs

The determination of the costs for a new erection or reconstruction of an hydroelectric station is a demanding job to do. Especially the estimation of the costs of hydraulic and underground engineering require precise analysis of the underground structure, possibly existing usable buildings, common local conditions and the hydraulic and hydrologic features of the river.

Before making an offer, we carry out a general for free local inspection to check the most important conditions. Later on more precise investigations are required.

After the complete estimation of the expected costs a reserve for unexpected expenditures and risks should be taken into account.

Subsidy and Taxation

In Germany and the single federal states there are several aid programmes. We know these programmes and provide support to our customers in the often very bureaucratic applying.

Furthermore subventions from the Federal Government (low interest loans, etc.) are possible. For special projects the EU, the German Federal Environmental Foundation (DBU) and severe departments offer support. Of course we help our clients also in these applyings.

Abroad the suitability for subsidies must be examined exactly, because the regulations and restrictions vary strongly from country to country.

It is true that the tax situation has got worse, especially since the abrogation of the special amortisation in the new federal states, but still there are possibilities of high depreciations in the first years of operation (degressive methods). In every individual case tax questions have to be looked at considering the special project and the clients income level.

Economic Effectiveness

If the above-mentioned requirements are met, they should be entered into a clear charge to recognise the profitability of the whole intention.

We have worked out a profitability charge in a clearly structured chart, which shows the economic feasibility considering the current expenses. Using this document makes it possible to find out the best funding model.

In the course of credit applying normally an additional cost-benefit analysis is required, which we can work out basing on the before determined figures.

Hydropower - economic project or unaffordable hobby ?

Our ancestors started using of stream flow hydropower an almost incredible time ago. Today its usage is more intensively than ever. Even in todays decline of the economy this surely has also economic reasons.

With thorough preparation, sound conception and limitation of the investment costs, under the premise of acceptable reimbursement, usage of hydropower is efficient. But in every case hydropower projects are long-term investments, so investments for the future.