I realize that differing points of view legitimately arise from
different individual circumstance, so I am not trying to say either of
the perspectives given by Frank or DJ below are wrong - particularly
if one restricts ones interest to systems suitable for a single
residence. However, I have a very different view of this, as I suspect
would others in this group who have an interest in revenue producing
plants in the 5-5,000 kW capacity range.

An article on small hydro power appeared on page 87, of the 1984
Smithsonian magazine titled "The rush is on to find new gold in
falling water". The subtitle caption was "Small hydroelectric power
stations could take the place of 45 nuclear generating plants by 2000
- if governments decide to go that route".  I am not personally
opposed to nuclear power. I understand the fuel cycle problem we are
currently facing but I am told by those who know, that advanced cycle
plants could essentially solve that problem. So, I think advanced
nuclear plants are preferrable to coal, gas and oil fired plants all
of which will emit ~ 8 metric tons of CO2 per year per kW (or 8,000
tons/MW-year). I would still like to see clean renewable power
capacity built before nuclear.

If according to the Smithsonian article small hydro power has the
potential for as much as 45 nuclear plants (600 - 2000 MW each ?),
that's a lot of power. I've seen a study from the same time period for
potential at existing dams and diversions in the state where I live
that also shows very high potential - also 20 years later still un-tapped.

So, why are these systems not being built?
1) Regulations and permitting processes that are arbitrary, open ended
and non-deterministic, i.e. you can spend a lot of money on the
process with no way of knowing if you'll ever get the permit.

2) Banks don't like lending for something different (houses and main
street business are ok, but even though all of them buy kW-hrs that's
not).

3) Power sales prices that are far below the true value (to the
purchaser and to society) of the power - which makes the payback case
more difficult to show on #2.

This type of incentive helps all three aspects.
1) It makes a statement that government is promoting hydro power.
2) Faster payback which leads to easier financing

Five years ago I tried (unsuccessfully) to buy and rehabilitate a 50+
year old 500kW plant near my home. At the time, all I could show the
bank was the prior owner's history of being paid 1.9 cents/kW-hr over
the past decades. A 1 cent incentive would have been a huge
improvement in payback time. Things have improved over the past 5
years so that the fellow who did buy the plant is averaging closer to
5 cents /kW-hr. To me, 1 cent whether it constitutes a 20% or 50%
increase is still significant and welcome.  Put another way, say you
had 3 plants at 382kW each for 1146kW total, a 1 cent incentive is
$100,000/year. What I'm talking about is clearly in the small hydro
range, rather than microhydro. The technology and local impact of
small and microhydro is similar, but a large increase in small hydro
could have a very positive global impact on CO2 emissions.

  Joe


--- In [email protected], "Frank Leslie" <[EMAIL PROTECTED]> wrote:
> There should never be a net sale of power to the utility. If so, you
> overbuilt your expensive system. The utility produces power much more
> cheaply.
> 
> Frank
>   -----Original Message-----
>   From: [email protected] [mailto:[EMAIL PROTECTED]
> Behalf Of [EMAIL PROTECTED]
>   Sent: Thursday, September 29, 2005 9:30 AM
>   To: [email protected]
>   Subject: [Fwd: Re: [microhydro] CANADA TO PROVIDE INCENTIVES from
small
> hydro and biomass]
> 
> 
>   >     This just came across the Refocus Weekly - Renewables Update
- Issue
>   >  165 which rarely has any hydro news.
>   >
>   >  CANADA TO PROVIDE INCENTIVES FOR NON-WIND GREEN POWER
>   >  OTTAWA, Ontario, CA, September 28, 2005 (Refocus Weekly) The
>   >  government of Canada will provide an incentive to encourage the
>   >  installation of 1,500 MW of capacity from small hydro and biomass
>   >  generation facilities.
>   >
>   >  http://www2.nrcan.gc.ca/es/erb/erb/english/view.asp?x=681
> 
>   Did you read it?
> 
>   "An incentive payment of 1 cent per kilowatt-hour of production
for the
>   first 10 years of operation will be introduced for eligible projects
>   commissioned after March 31, 2006 and before April 1, 2011."
> 
>   That's pretty much incredibly insulting for homeowner sized
installations.
>   So, you stick a one kilowatt turbine in your river. It probably
cost you
>   near ten thousand dollars to put it there (based on my professional
>   experience) and tie it into a battery bank and the grid.
> 
>   Logically, you'd want to keep probably five to ten kilowatts a day for
>   yourself, rather than pay the utility for them.
> 
>   So that leaves, for fun, let's say 20 kw-h per day to sell. So at a
>   repayment of 20 CENTS a day, your return on investment is about...
what,
>   FIFTY THOUSAND DAYS. Unfortunately, FIFTY THOUSAND DAYS is about 136
>   years, and they stopped paying you that 20 CENTS A DAY 126 years
ago...
> 
>   Insulting.
> 
>   DJ
>







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