1Department of Mechanical Engineering, THDC Institute of Hydropower Engineering & Technology, Tehri, Uttarakhand
2Department of Hydro and Renewable Energy, Indian Institute of Technology, Roorkee, Uttarakhand
3Mechanical Engineering Department, National Institute of Technology, Hamirpur (HP)
The present study shows a comparative life-cycle cost analysis (LCCA) of a large reservoir-based and a small dam-toe hydropower plant in India. In the analysis, the main life-cycle economic indicators, viz., present value of total life-cycle cost (LCC) and energy generation, levelized cost of electricity (LCOE), equivalent annual cost (EAC), and capacity-normalized cost metrics are estimated to analyze the long-term economic performance of the projects. The study found that large reservoir-based projects are the more cost-effective option over the long term, owing to their lower per-unit electricity generation costs and greater cost efficiency. Although small dam-toe projects provide benefits such as lower initial investment, localized suitability, etc., their higher unit electricity generation costs limit their economic competitiveness. The study concludes that large reservoir-based projects are more economically sustainable whereas small dam-toe projects are more suitable for decentralized and region-specific energy development planning and strategies.
LCCA, Hydropower, Cost, Present Value, Economic
