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Effectıveness and Effıcıency ın Hydroelectrıc Development

Mahir Aydın

Project Manager, Hydroelectric Development, Canada

There are two popular words in the business world associated with decision making:  “Effectiveness” and “Efficiency”.  Effectiveness means “doing the right things” while efficiency implies “doing things right”.  We look for effectiveness in major decisions.  Then efficiency takes over in deciding the tasks to execute work. Successful investment in development of a hydroelectric plant with good financial returns and minimal environmental impact is a prime example of effective decision making.  Once the plant is in-service, achieving optimal production levels with the available resources verifies the efficient operation.     

When the demand for electricity increases, the first thought comes to mind of many decision makers is to invest in new generation.  Opening ceremonies are great photo opportunities for executives and politicians.   However, investment in new facilities without first trying to make the best use of the existing resources is a sign of irresponsible corporate management. 

In the hydroelectric business, the plant capacity, annual energy and revenue are defined as follows:

Capacity (MW) = Efficiency coefficient x Flow (m³/s) x Head (m)

Energy (MWh) = Capacity (MW) x Operation hours in a year (hr)

Revenue ($) = Energy (MWh) x Power Purchase Price ($/MWh)

As seen from these relationships, the plant operation staff should consider the following in order to increase production: 

(a)  Maximizing the flow available for production by detailed forecasting of the hydrological conditions (e.g., precipitation and snow pack), operating all the facilities on the same river system in a cascading scheme and eliminating the flow leakages (e.g. around the sluiceways).  Global warming is expected to increase the average air temperature and evaporation from the reservoirs.  The challenge lies ahead for future decision makers is to develop and implement technologies to reduce evaporation and increase precipitation. One possible solution is to utilize cloud seeding.  For example, Idaho Power (USA) reported that they were able to increase the precipitation in winter months by up to 9% between 2003 and 2005 by spraying the clouds with minute silver iodine particles.  Their target for the coming years is 15%.  

(b)  Maximizing the head by reducing the hydraulic losses (e.g., debris blockage at trashracks, bottleneck in the river and vortices due to butterfly valves).

(c)  Maximizing the efficiency coefficient: This coefficient represents the efficiency of the electro-mechanical equipment and is determined from performance testing. Lack of updated performance characteristics is usually the main cause of sub-optimal operation of the generating units.  The performance test is usually part of the plant commissioning activities prior to commencement of commercial operation.  Although, performance tests are recommend to repeat every 15-20 years to account for the effects of wear-and-tear they are usually ignored until a major overhaul or runner upgrade.  Hydro Quebec in Canada is one of the largest power producers in the world.  In spite of their historical leadership in hydroelectric research and operation, the company was still able to identify generation-related energy loses of about 4% in the mid-1980s, costing roughly $150 million annually.  The losses have been reduced by about 65% through the development of an advanced water management system. 

Of course revenue optimization is not the only consideration in hydroelectric business.  The plants should be operated in full compliance with environmental and dam safety guidelines. 

In conclusion, decision makers should first explore the possibility of increasing the efficiency of existing generation plants before considering costly investment in new generation facilities. This is the shortest path to attaining sustainable development.