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been exploited. In Africa, the higher costs are partly due to the fact many projects are in remote areas with poor infrastructure and have higher transport and logistical, as well as grid connection costs.20 An important conclusion from this analysis is that although the installed cost range for hydropower is wide, weighted average installed costs are typically low in regions with significant remaining potential and can provide electricity 20 These conclusions are tentative at best given the imbalance in total project numbers between regions. at very competitive prices. This is despite the fact that the costs for the other services they provide, such as potable water, flood control, irrigation and navigation are included in the hydropower project costs and are typically not remunerated. In addition, plants with higher installed costs are often associated with higher capacity factors, reducing their LCOE, and are providing other services such as irrigation. This is also without taking into account that the additional value of grid services provided by hydropower in terms of short‐term flexibility and long‐term energy storage, which may have significant value over and above a simple LCOE analysis. 8000 7000 6000 5000 4000 3000 2000 1000 0 Small Large Small Large Small Large Small Large Small Large Small Large Small Large Small Large European United Africa Eastern Other Asia China India Union States Europe and Central Asia Latin America FIGURE 5.4: TOTAL INSTALLED COST RANGES AND CAPACITY WEIGHTED AVERAGES FOR COMMISSIONED OR PROPOSED SMALL AND LARGE HYDROPOWER PROJECTS BY COUNTRY/REGION SOURCE: IRENA RENEWABLE COST DATABASE. The cost ranges for small hydro are typically wider than for large hydro, although this is not always the case where significant unexploited hydropower potential remains. Weighted average installed costs for commissioned or proposed small hydro are very similar to those for large‐scale hydropower projects in Africa, China, India and other Asian countries. In Europe and Central Asia, weighted average installed costs are actually lower than for large‐scale hydro, but this is not statistically significant. In Latin America, the range is similar to that for large hydro, but the weighted average capital costs are higher. Renewable Power Generation Costs in 2012: An Overview 43 2011 USD/kWPDF Image | International Renewable Energy Agency
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