Basis of Tariff Fixation

1. Basis of Tariff Fixation • Rate of depreciation • Reasonable profit • Mode of operation of the plant • Change in the consumers price index • Marginal cost of electricity generation • The exchange rate of convertible foreign currency • The cost of the fuel to be used for the production of electricity Prepared By Raj Kumar Basnet,Engineer of DOI.

2. Basis of Tariff Fixation conti …… • Potential for demand side management • Organizational efficiency • Types of consumers • Social liability • Cross subsidies Prepared By Raj Kumar Basnet,Engineer of DOI.

3. Difference between financial and economic analysis Prepared By Raj Kumar Basnet,Engineer of DOI.

4. Traditional water management concept and practice • Traditional water management & concept was focused generally on supply side. • Technical solutions were emphasized • Social / Environmental impact were not fully considered. • Generally controlled by independent sector authorities (command and control). Prepared By Raj Kumar Basnet,Engineer of DOI.

5. Result of traditional water resource mgmt. & concept. • Inter – sectoral and riparian conflict. • Lack of efficiency in water use. • Lack of equity consideration. Prepared By Raj Kumar Basnet,Engineer of DOI.

6. Integrated water resource mgmt. • Since 1922’s Dublin conference IWRM has increasingly been recognized as the holistic , people & environment focused paradigm by which water should be managed. • A study by IRC( International water & sanitation center) , Delf , Netherlands in 1999 identified eight principles of IWRM ,which are primarily based on Dublin principles and other recent developments. • IWRM is defined as a process that promotes the co-ordinated development and management of water, land & other resources to maximized the resultant economic & social welfare in an equitable manner without compromising the sustainability of vital ecosystem. Prepared By Raj Kumar Basnet,Engineer of DOI.

7. Integrated water resource mgmt. 8 principles.. • Water source and catchment conservation & protection are essential. • Water allocation should be agreed between stakeholders within a national framework. • Mgmt needs to be taken care of at lowest appropriate level. • Capacity building is the key to sustainability. • Involvement of all stakeholders is required. • Efficient use of water is essential and often an important source in itself. • Water should be treated as an economic & social value. • Striking a gender balance is essential. Prepared By Raj Kumar Basnet,Engineer of DOI.

8. Need for IWRM….. • Water source use conflicts. • Prioritization of usage. • Conservation & protection of water resources. • Optimization & conservation. • Productive use of water. • Gender balance. Issues of water resource mgmt.(global & local) • Many areas are facing scarcity situation. • Major challenge is to develop appropriate institutions for effective mgmt ,allocation & protection of the water resource. • Units of mgmt could be river basin ,sub-basin and local drainage areas. Prepared By Raj Kumar Basnet,Engineer of DOI.

9. River basin management. • Two of the stated policy principles relevant to river basin mgmt (RBM) are: • Development and mgmt of water resources shall be undertaken in a holistic & systematic manner, relying on IWRM. • Water utilization shall be sustainable to ensure conservation of resources and protection of the environment. Each river basin system shall be managed holistically. Prepared By Raj Kumar Basnet,Engineer of DOI.

10. Concept of screening and ranking • For hydropower project ranking criteria are: • Accessibility- Road length. • Transmission line length. • Risk – Hydrological/ Geological / Geotechnical / Environmental/ Socio- economical / Sedimentation / Financial. • Technical attractiveness of the project. • Layout, Head availability, Storage percentage of annual flow (for storage project) • Regional balance. • Load center. Prepared By Raj Kumar Basnet,Engineer of DOI.

11. Concept of screening and ranking continue… • First of all the weightage should be given for above criteria as per our need assessment and then rank as per criteria. Screening • The selection process of required no. of hydropower projects from the possible identified projects.(refer NEA guidelines) • Screening is the first step of environmental assessment(EA) process. It assist in determining whether or not a proposal for hydropower & rural electrification requires an EA process and, if required, what level of EA should be carried out to assess the possible impacts of the proposed actions on the environment. Prepared By Raj Kumar Basnet,Engineer of DOI.

12. Economic Analysis • Analysis of cost and benefit of a project from the point of view of society or country as a whole without considering the obligations of financial contributors and claims of others based on profit. • Economic analysis of projects takes into account something that is fundamental to economic thinking : opportunity costs. • Economic thinking also relies heavily on marginal costs and returns.(i.e. it considers marginal costs and returns). • Some of the indicators are : IRR,NPV,B/C ratio. Prepared By Raj Kumar Basnet,Engineer of DOI.

13. Financial analysis • Financial analysis tends to look at projects based on many criteria but all revolving around the two things that are fundamental to finance: time & money. For example financial analysis of project will examine rate of return (ROR), in other words, is the project returning cash at greater rate than it costs me to borrow the money? Payback period is another measure: how long will it take to reclaim the amount invested in the project. • Analysis of cash outlay & cash inflow. • It looks the project from the side of implementing agency, whether the project is attractive for investment or not. • Some of the indicators are : ROE(return on equity),IRR,NPV, B/C ratio, payback periods Prepared By Raj Kumar Basnet,Engineer of DOI.

14. Financial investment • Financial investment allocates resources into a financial assets, such as a bank account, stocks, mutual funds, foreign currency and derivatives. • Financial investments are purchase of financial claims. This type of investment may or may not yield a return. • It is safe from inflation. Prepared By Raj Kumar Basnet,Engineer of DOI.

15. Economic investment • An economic investment puts resources in something that may yields benefits in excess of initial cost. • An economic investment may include buying or upgrading machinery & equipment or adding to a labor force. • For example, an economic investment could be a tuition reimbursement program for employees. Prepared By Raj Kumar Basnet,Engineer of DOI.

16. Alternative to solve the problem of load shedding. • Immediate/short term • Use of captive plants. • Repairs & maintenance of existing power plants. • Optimum use of PROR & storage plants. • Reduce the leakage & theft of electricity. • Review the energy rate according to demand & supply. • Reservoir sedimentation management. • Discourage the use of inverters and encourage the solar energy in housing complex,apartment,office complex & urban areas. • Cross border links. • Long term • Cross boarder transmission line. • South Asian Power Pools. • Planning of storage and peaking power plants. • Review the energy rate according to demand & supply. Prepared By Raj Kumar Basnet,Engineer of DOI.

17. Challenges of Water resource development. • The main challenges of water resource management can be broadly divided into: • Political: Political division, lack of stable government. • Legal: lack of consistent policies. • Economical: dearth of adequate investment of capital. • Technological: lack of skilled manpower,equipment,hiering of foreign contractor increases cost upto 50% & money goes outside. Country's geology, topography & hydrological features. • Hydro-meterological: rainfall variation from place to place. • Social & Environmental. Prepared By Raj Kumar Basnet,Engineer of DOI.

18. Substation • A set of equipment reducing the high voltage of electrical power transmission to that suitable for supply to consumer. • A substation is a part of an electrical generation , transmission & distribution system. Substations transform high voltage to low or the reverse, or perform any several other important functions. • Consists transformer to change voltage level. Prepared By Raj Kumar Basnet,Engineer of DOI.

19. Substation Elements • Primary power lines • Ground wires • Overhead lines • Transformer • Disconnect switch • Circuit breaker • Current transformer • Lightening arrester • Main transformer • Control building Types of substation • Transmission • Distribution • Collector • Converter • Switching Prepared By Raj Kumar Basnet,Engineer of DOI.

20. Return on equity (ROE) • The amount of net income returned as a percentage of shareholders equity. • ROE= net income / shareholder’s equity. Prepared By Raj Kumar Basnet,Engineer of DOI.

21. Advantages of Hydropower • Non-polluting, clean & environment friendly. • A renewable source of energy. • Cost of generation, operation & maintenance is lower than other sources of energy. • Long operating life. • Cost of generation is free from inflationary effects after the initial installation. • Storage based hydro schemes provide benefits of flood control, irrigation, drinking water supply, navigation, recreation, tourism & aquaculture. • Opening of avenues for development of remote & backward areas. • Ability to start & stop quickly & immediate load acceptance / rejection makes it suitable to meet peak demand & for enhancing system reliability & stability. Prepared By Raj Kumar Basnet,Engineer of DOI.

22. Types of Hydropower potential • Gross / Theoretical potential • It is the power potential of all surface flow of water. • The power which is theoretically possible to generate is called theoretical or gross potential. The river basin is divided into number of sub- divisions i.e. cascades based on the hydropower. Estimated gross potential of Nepal is 83000 MW.(By Dr. Hari Man Shrestha). • Technical potential • It is that part of gross potential which can be utilized with the help of construction of the hydropower stations by technical means. All the power potential isn’t technically feasible due to the poor geology, unfavorable hydrology, climatic condition, accessibility. The estimated technical power potential of Nepal is 44000 MW. Prepared By Raj Kumar Basnet,Engineer of DOI.

23. Types of Hydropower potential .. • Economical potential • It is that part of technical potential which is economically justified, i.e. feasible. It is always not economical to utilized the discharge available during a short period of time of year. • The project is generally economically viable if : IRR > prevailing interest rate & B/C ratio > 1. • It is a part of technical potential, use of which is economically effective with the consideration of the fuel power balance in the region, multipurpose utilization of water resources & preserving ecological balance. Prepared By Raj Kumar Basnet,Engineer of DOI.

24. HYDROPOWER POTENTIAL IN NEPAL • Theoretical hydropower potential 83, 000 MW • 45,610 MW capacity economically feasible Upper Karnali (300) Dudh Koshi (300)) Budhi Gandaki (600) Upper Tamakoshi (456) Upper (335), Arun III (402) & Lower Arun (308) Pancheshwor (6400) Karnali Chisapani(10800) Kali Gandaki 2(660) Prepared By Raj Kumar Basnet,Engineer of DOI.

25. Safety in in storage & handling of explosive • Storing : Following points should be kept in mind while storing the explosive. • Kept in dry & well ventilated room. • Kept as cool as possible and free from excessive or frequent changes of temperature. • Protect from direct sunlight. • Use warning sign & symbols. • Protect from fore. • Some of lightening protection should be used. • Empty container of any type, are not to be stored with explosive. • All fire fighting equipment is to be maintained in a fully serviceable condition. • Paints, oils, petrol or any other flammable materials shall not be stored with explosive. Prepared By Raj Kumar Basnet,Engineer of DOI.

26. Safety in in storage explosive…. • A minimum no. of two 9.0 ltr. Water extinguishers shall be in prominent position outside each explosive. • Fire alarm; should be provided. • Fire symbol should be displayed outside at each building. • All electrical wiring should be grounded. • Important telephone no. should be placed in visible place for all in written form. • List of substances that are not allowed at explosive area should be clearly mention in written form, eg. Matches, cigarette, lighter, mobile phone, oil lamps etc. Prepared By Raj Kumar Basnet,Engineer of DOI.

27. Safety in in storage & handling of explosive…. • Handling : Following points should be kept in mind while handling the explosive. • Access to explosives shall be tightly controlled. • Explosive shall be handled in accordance with the manufacturer instructions & specifications & other relevant standards & regulations. • Only trained person are allowed during the handling of explosive or other person, in supervision of trained supervisor. • During handling personal protective equipment(PPE) should be wear by the person who involved in handling. Prepared By Raj Kumar Basnet,Engineer of DOI.

28. Safety in in Transportation of explosive…. • Transportation : Following points should be kept in mind while transporting the explosive. • Ensure the security of explosive. • Transport explosive in accordance with manufacturers instructions & specifications, and other relevant international and national standards and regulations. • Avoid accidents. • Passenger: vehicle transporting explosive shouldn’t transport passengers. If it is necessary that passengers are carried in the same vehicle as explosive, a team member shall be appointed as the responsible person incharge. The responsible person shall then ensure the safety of passengers & enforce all fire hazard precautions. • Detonators & explosives shalln’t be carried on the same vehicles, unless the storage container for the detonators meet the minimum design requirement. • Special equipment: two 9.0 ltr. Water extinguisher or equivalent & a container for storing smoking materials, matches, lighters & cigarettes etc. Prepared By Raj Kumar Basnet,Engineer of DOI.

29. Safety of storage & handling of compressed gases & flammable substances Following precautions are strictly consider while storing compressed & flammable substances eg. LPG. • Store flammable gas cylinders in separate well ventilated room. • Ensure that cylinders are properly secured so that they can’t fall over and valves are protected from damage. • Always use correct fittings & valves for specific cylinder , don’t mix & match fittings. • Protect hoses, connections & containers from damage & inspect them regularly from sign of wear. • Use portable storage containers. • Prevent from fire. • Should be handled according to instruction given by the manufacturer specifications. Prepared By Raj Kumar Basnet,Engineer of DOI.

30. Single & Double circuit transmission line. • Single circuit TL • A single circuit transmission line carries conductors for only one circuit. • For 3- phase system, this implies that each tower supports 3 conductors. • Double circuit TL. • A double circuit transmission line has two circuits. For 3- phase system, each tower supports & insulates 6 conductors. • A advantage of double TL is that it carries double power than single TL & one circuit will be in operation while another one gets defective. • A disadvantage of double circuit TL is that maintenance works can be more difficult, as either work in close proximity of high voltage or switch – off of 2 circuit is required. Prepared By Raj Kumar Basnet,Engineer of DOI.

31. Difference between Single & Double circuit transmission line. Single circuit TL Double circuit TL • It has conductor for only one circuit. • At failure, no supply of voltage. • For 3 – phase it consists of 3 – conductors in each tower. • Maintenance work is easy. • It has double conductor than single circuit. • At failure still remaining one is working & supply the voltage. • For 3 – phase it consists of 6 – conductors in each tower. • Difficult in maintenance works. Prepared By Raj Kumar Basnet,Engineer of DOI.

32. Multipurpose project • Single project that is meant to do multiple things simultaneously, for example a hydropower project for power generation, flood control, irrigation, water supply etc. • The project serving the combination of two or more benefits of following: • Municipal & industrial water supply. • Hydropower • Irrigation • Navigation • Recreation • Flood control • Fishery • Prevention & enhancement of natural water areas, ecological diversity & archeology. Prepared By Raj Kumar Basnet,Engineer of DOI.

33. Multipurpose project • Advantages • Help in storing water at large amount which can be used for agriculture & other purposes. • Helpful in generating electricity. • Helpful in checking flood. • Provides facility of fishing. • In some condition, they can be used for navigation. • For recreation, tourism & water – sports. • Sustainable use of water and ecological balance. • Disadvantages • Sometimes a leakage in a dam from any side can be very harmful from the adjoining areas. • They cover a large area of cultivable land & forest area. • Sometimes they can cause flood. • They also stop aquatic fauna migration. • Sometimes, they can cause water borne diseases. • Problem of maintenance. • High initial investment / cost. Prepared By Raj Kumar Basnet,Engineer of DOI.

34. Some definitions • Cavitations : A hydraulic phenomenon whereby liquid gasifies at low pressure & the vapor bubbles form & collapse virtually, instantaneously causing hydraulic shock to the containing structure. This can lead to severe physical damage in some cases. • Installed capacity : The installed capacity of hydropower is the maximum power which can be developed by generators at normal head with full flow. • Net head : It is the head available for power generation and is obtained by deducting all losses except that are chargeable to turbine from gross head. Hn= Hg- Hl • Gross head : It is the elevation difference between water level at fore way or at dam and water level at tailrace level. Prepared By Raj Kumar Basnet,Engineer of DOI.

35. Turbine • It is the device, which converts the energy available at the flow into the mechanical energy, which could be used for other useful works. If this energy is used to rotate the shaft of generator, then electricity could be produced. Prepared By Raj Kumar Basnet,Engineer of DOI.

36. Types of Turbine • Based on pressure. • Broadly divided into 2 groups: • Impulsive or velocity turbine : Pelton wheel (in 1889). • Pressure or reaction turbine : Francis ( in 1849),Propeller & Kaplan ( in 1913), Deriaz turbine ( in 1945). • Based on flow direction. • Radial inward flow or mixed flow turbine : Francis • Tangential flow turbine : Pelton • Axial flow turbine : Propeller or Kaplan • Diagonal flow turbine : Deriaz Prepared By Raj Kumar Basnet,Engineer of DOI.

37. Types of Turbine • Based on Head • Low head ( 2-15 m) : Propeller & Kaplan turbine. • Medium head ( 16-70 m) : Kaplan & Francis. • High head (71-500 m) : Francis & Pelton. • Very high head (>500 m) : Pelton. • Based on discharge. • Low discharge : Pelton. • Medium discharge : Francis. • High discharge : Kaplan. • Based on unit capacity. • Upto 33,000 HP : Pelton • Upto 1,50,000 HP : Kaplan. • Upto 8,20,000 HP : Francis. • Based on specific speed(rpm) • 4-70 : Pelton. • 60-400 : Francis. • 300- 1100: Kaplan. Prepared By Raj Kumar Basnet,Engineer of DOI.