Economic Impact Assessment of Mini Micro Hydel Power Projects in Khyber Pakhtunkhwa

Abstract

The exhaustion of the fossil fuel supply of the world is an understood eventuality, considering the pace at which these resources are being exploited the world over. More so when the global energy requirements are increasing without much interruption; suffice to say the current state of operations in the energy arena is not going to last long. Alternative energy resources, in this worldview, provide an auspicious avenue of fulfilling the burgeoning human thirst for energy. The impact of these alternative energy resources utilization will be twofold: the satiation of the energy demand, and the culmination of the global warming resulting from the incessant use of the fossil fuels. The urge for alternative resources of energy is key to survival and demand of future. In comparison to all the alternative resources of energy, Hydro power present better results in terms of efficiency and long term viability.The viability of Hydro Power is subject to its high initial cost and major construction with no return in the initial phase of construction. This work is aimed at presenting the technical and financial aspects of Micro-Hydro power. The financial assessment is based on the Net Present Value (NPV), Internal Rate of Return and Benefit to Cost Ratio (B/C). Apart from the social benefits to the residents and improving the quality of life, the financial feasibility is tested on the basis the above parameters and results shows the micro hydro are feasible in the lights of mentioned parameters. The proposition is tested and implemented on three different case studies, i.e. Ajmera Hydro power plant, Bersa Payen and Sheri Dumrai HPP. The data shows successful results in the all the mentioned cases.