Small Hydro – Technical Basics

2. Small Hydro – Technical Basics “Hydro 101” Syllabus • Independent Power Producer (IPP) Development Process • Permitting • Consultation • Design - Costing • Sale of power to BC Hydro • Financial • Characteristics of a Run of River Hydro Project • Hydrology • Physics • Main components: Intake, Penstock, Turbine-Generator, Powerhouse, Sub-station • System control 1

3. Small Hydro – IPP Development Process Typical IPP Development Sequence Click to add text

4. Small Hydro – IPP Development Sequence Process - Simplified Development Phase • Permitting • Design/Costing • Electricity sales • Financing Operations Construction 3

5. Small Hydro – Permitting Minister of Aboriginal Relations and Reconciliation Click to add text

6. Small Hydro – Permitting Consultation – Early and regularly • First Nations • Partnership and ownership • Benefits agreements and employment • Stakeholders • Local politicians, interest groups (e.g. recreation clubs, contractors, etc.) • Overlapping tenure holders; forestry, mining, water licence holders Minister of Aboriginal Relations and Reconciliation Click to add text

7. Small Hydro – Design / Costing Design/Costing Progression Hydrology Data Collection Pre-feasibility study Feasibility study Detailed design Costs increasing Uncertainty decreasing 6

8. Small Hydro – Electricity Sales Electricity sales to BC Hydro • Three different options • Calls for Power • Intermittent • Larger projects • Rules, conditions and terms vary • Competitive bid process • Standing Offer Program (SOP) • Recently revised • - Price $99/MWh • - Size limit 10 MW • Proposals are accepted anytime • Net Metering • Small: <50 kW Minister of Aboriginal Relations and Reconciliation Click to add text

9. Small Hydro – Pricing Time of Year – Time of Day Minister of Aboriginal Relations and Reconciliation Click to add text

10. Small Hydro – Pro Forma Financing • Financial Model • Revenue and cost projections for 20-40 years • Discounted cash flow to calculate Return on Investment • Hurdle rate is minimum acceptable ROI. • Leveraging • 60/40 or 80/20 Debt/Equity • Increase Return on Equity • Debt Coverage Ratio • Varies • Will impact leveraging • Term • Equity goes in first • Full draw down • Construction loan take out Minister of Aboriginal Relations and Reconciliation Click to add text

11. Small Hydro – IPP Development Sequence Penultimate Step Development Phase • Permitting • Design/Costing • Electricity sales • Financing Operations GO or NO GO Construction 10

12. Small Hydro – Overview Main Components Minister of Aboriginal Relations and Reconciliation Click to add text

13. Small Hydro – Overview Physics • Power (kW) = Flow (m3/s) x Head (m) x Efficiency x Gravitational Constant x 9.81 m/s2 • 4 m3/s x 275 m x 0.75 x 9.81 m/s2 = 8,100 kW (8.1 MW) • Energy (kWhr) = Power (kW) x Time (hr) • Plant Factor = Actual Annual Energy / Theoretical Maximum Annual Energy • 31,540 MWhr/yr / (8.1 MW x 8,760 hr/yr) = 45% Click to add text

14. Small Hydro – Overview Considerations for hydro site selection • Hydrology • Low elevation with winter flow • Lake in upper watershed • Infrastructure • Existing roads • Close to grid • Location • Not in recreation park or special area • Proximity to town • Geotechnical conditions • Environment • Fish, anadromous and resident • Rare plant or animal species • Other users Click to add text

15. Small Hydro – Overview Hydrology - Watershed Click to add text

16. Small Hydro – Overview Hydrology – Synthetic Flow Record • REAL TIME FLOW DATA • OVERLAPPING PERIOD WITH LONG TERM FLOW DATA • DEVELOPMENT OF RELATIONSHIP FOR CONCURRENT DATA • APPLY RELATIONSHIP TO LONG TERM FLOW DATA • SYNTHETIC FLOW STRING • Average daily flows in m3/sec • 1 year real time data – minimum • 20 year synthetic flow string - minimum Click to add text

17. Small Hydro – Overview Hydrology Power Flow = River Flow – IFR Click to add text

18. Small Hydro – Overview Main Components - Intake • Functions • Direct water into penstock • Allow instream flow release (IFR), surplus water to pass downstream • Allow debris to pass downstream • Allow fish to pass upstream, downstream • Keep air, fish and debris out of penstock • Parts • Weir – sluicegate and spillway • Headpond • Trashrack, intake chamber and bellmouth, gate Click to add text

19. Small Hydro – Overview Main Components – Rubber Dam Intake Rutherford Creek Hydro Project Innergex Renewable Energy Inc. Click to add text

20. Click to add text Small Hydro – Overview Main Components – Coanda Intake Brandywine Creek Hydro Project Run of River Power

21. Click to add text Small Hydro – Overview Main Components – Penstock • Materials • Low Pressure: HDPE, Steel, Other • High Pressure: Steel • Buried • Safe and unobtrusive • Trenching may be difficult • Drainage • Surface • Requires anchor blocks and pedestals • Creates a barrier • May be easier to install • Highest Cost – Highest risk component of a run of river hydro project Sechelt Creek Hydro Project Regional Power

22. Click to add text Small Hydro – Overview Main Components –Turbines High Head - Low Flow • Pelton Low Head – High Flow • Francis • Kaplan Smaller Units • Turgo • Crossflow

23. Click to add text Small Hydro – Overview Main Components – Pelton Turbine • High Head - Low Flow • Relatively Flat Efficiency Curve • Instantaneous Flow Bypass

24. Click to add text Small Hydro – Overview Main Components – Pelton Turbine

25. Click to add text Small Hydro – Overview Main Components – Francis Turbine • Low Head - High Flow • Peaked efficiency curve • High maximum efficiency • Flow bypass valve required

26. Click to add text Small Hydro – Overview Main Components – Francis Turbine

27. Click to add text Small Hydro – Overview Main Components – Powerhouse • House turbines, generators and ancillary equipment • Control System • Tailrace returns water to river • Good road access required Soo River Hydro Project Summit Power Corp.

28. Small Hydro – Overview Main Components – Sub-Station and Transmission Line • Beside powerhouse • Step-up transformer • Circuit breaker • Transmission line to point of interconnection • Typical Voltages 25 kV, 69 kV, 138 kV Doran-Taylor Project Summit Power Corp.

29. Click to add text Small Hydro – Overview Control System • Highly automated • Remote monitoring and control • Daily site visits • PLC controlled in powerhouse • Inputs/Outputs from intake, turbine, generator, BC Hydro and others • Grid connected no load following • Turbine speed constant • Generator voltage and frequency constant • River flow varies • River flow – IFR = Power flow • As river flow increases, power flow increases to design maximum • Power and energy are dictated by river flow

30. Click to add text Small Hydro – Development Basics Questions?