Evaluating the productivity and financial feasibility of a vertical-axis micro-hydro energy generation project using operation simulations

Abstract

This study proposes a financial feasibility evaluation method for canal-based micro-hydroelectric energy projects. In numerous countries, the use of river water for irrigation or livelihoods typically necessitates the implementation of diversion projects and the construction of canals. Therefore, this study endeavors to explore the productivity of a canal-based micro-hydropower station and perform a financial feasibility analysis. Financial feasibility evaluations are required to support investment decisions when selecting a suitable power station site and conducting the technological development of a vertical-axis micro-hydro energy converter (MHEC). Because of a lack of long-term operational experience, the method proposed in this study referenced detailed operation simulations and related general market conditions for analysis. The factors referenced included the related operational costs, the estimated power generation ability for the station equipment, location criteria for power station establishment, and maintenance strategy selection. For this research, a case study of the Shimen Canal in Taoyuan, Taiwan, was conducted, where 100 MHECs in vertical-axis units were used to perform short-term operational tests. The test results were employed as estimated data in this study. In addition, the micro-hydropower station was adopted for financial feasibility analysis. Finally, sensitivity analyses of the case study were conducted to investigate the effects that crucial parameters have on the financial feasibility of the proposed project.