Abstract

This paper presents an economic evaluation using Life Cycle Cost Analysis and Rate of Return to compare Pump as Turbine and Multi Jet Pelton Turbine as an electromechanical component in a microhydro project for Kampung Longkongungan, Sabah. The aim of this paper is to support microhydro project managers in rural areas to evaluate economic advantages between two type of turbines, taking into account relevant cost components, covering a wider perspective beyond capital cost. The analysis is set in view of 15 years product lifespan with discount rate set at 5% per annum. The goal of this study is to determine which system produced the best return on investment. All relevant data have been collected through product manuals, product suppliers, and academic literature. The study reveals that Pump as Turbine and Multi Jet Pelton Turbine cumulative profit are recorded at MYR 10,065.11 and MYR 14,863.82 respectively. The Rate of Return for Pump as Turbine is at 4.34 while Multi Jet Pelton at 6.11 years. The result shows that Pump as Turbine has a low capital cost and shorter Rate of Return. However, due to low efficiency, the total return of investment is lower than Multi Jet Pelton Turbine.

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