Question

An irrigation district is considering installation of small hydro plant on one of their existing canals. The canal is operated 5 months a year at an average flow rate of 8.1 m³/s. Available net head at the site is 3.8 m. Plant operator will be able to market the power generated at an average of 4.8 USDcent/kWh. Assuming the facility has a total investment cost of $646,000, plant efficiency is 80 percent, and annual operation and maintenance costs are $12,000. What is the benefit/cost ratio and payback period of the project? There is no debt payment

Answer 1