Hydropower at Canford: A Case Study in Investment Appraisal

Abstract

This paper reports a case-study investigation into the economic desirability of generating hydroelectric power from the River Stour for Canford School, Dorset, as part of a larger feasibility study, which won a 1985 Molins Design Prize. A parametric discounting approach to net present-value assessment was used to examine the economic benefits of installing a small run-of-river hydropower scheme. Sensitivity analysis was used to clarify the effects of uncertainties in the limited cost and rate data available at the feasibility stage of the project. The role of the economic analysis in relation to other aspects of the feasibility study is indicated.