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The largest share of installed costs for large hydropower plant is typically for civil construction works (such as the dam, tunnels, canal and construction of powerhouse, etc.). Electrical and mechanical equipment usually contributes less to the total cost. However, for hydropower projects where the installed capacity is less than 5 MW, the costs of electro‐mechanical equipment may dominate total costs due to the high specific costs of small‐scale equipment. Box 5.1 CAPITAL COST BREAKDOWN FOR SMALL HYDROPOWER PROJECTS The cost breakdown for small hydro projects in developing countries reflects the diversity of hydropower projects and their site‐specific constraints and opportunities (Figure 5.2). Electro‐mechanical equipment costs tend to be higher than for large‐scale projects, contributing from 18% to as much as 50% of total costs. Infrastructure costs can dominate total costs for projects in remote or difficult to access locations. 100% 80% 70% Other installation costs 90% Planning Civil works Infrastructure & logistic Electrical connection / 60% construction 50% 40% 30% 20% 10% 0% 0.1 0.13 0.3 0.5 0.5 0.68 1 1.8 2.2 6.6 7 9 13 18 Project size (MW) Equipment FIGURE 5.2: CAPITAL COST BREAKDOWN OF SMALL-SCALE HYDRO PROJECTS IN AFRICA SOURCE: IRENA/GIZ, 2012. 5.1.1 HYDROPOWER ELECTRO-MECHANICAL COSTS The electro‐mechanical equipment used in hydropower plants is a mature technology. The cost is strongly correlated with the capacity of the hydropower plant and there are important economies of scale (Figure 5.3). The proposed capacity of a hydropower plant can be achieved by using a combination of a few large turbines or many small turbines and generating units. Renewable Power Generation Costs in 2012: An Overview 41PDF Image | International Renewable Energy Agency
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