Feasibility Study Report

Teliya Khola Small Hydropower Project, Teliya and Parewadin VDC, Dhankuta Feasibility Study Report
FEASIBILITY STUDY REPORT

OF
TELIYA KHOLA SMALL HYDROPOWER PROJECT

TELIYA &PAREWADIN VDC (DHANKUTA)
& HAMARJUNG VDC (TERHATHUM)

(996 KW)

Prepared by :
Epsom Engineering Consultancy Pvt. Ltd.
&
Modern Hydropower and Energy Development Pvt. Ltd. JV
GPO Box No: 8973, NPC -585
New Baneshwor, Kathmandu, Nepal
Tel: 015546792 / 9851070202
E-mail: epsom_econ@yahoo.com

Submitted by :
Volcano Hydropower Pvt. Ltd.
Kathmandu Metropolitan City: Ward No: 09
Gairigaun, Kathmandu
Tel: 98421-56928
E-mail: volcano_hydropower@yahoo.com

September 2010
VOLUME 1 : MAIN REPORT

Salient Features
General
Name of the Project: Teliya Khola Small Hydropower Project
Name of the River: Teliya Khola
Type of scheme Run of River
Project location Teliya and Parewadin VDC of Dhankuta
district and Hamarjung VDC of Terhathum
district.
Zone Koshi
Development Region Eastern
Latitude 8725'23" E to 8726'36" E
Longitude 2700'00" N to 2702'40" N
Access
Dhankuta-Jorpati 25 km
Jorpati-Teliya 7 km (Earthen Road)
Teliya-Project Site 3 kM
Hydrology
Catchment Area 38 km
2

Long term average flow 1.116 m3/s
Minimum monthly flow 0.161 m3/s
Design discharge (Q40) 0.85 m3/s
Design flood at intake (1:20) 138.00 m3/s
Design flood (1:100) 215.00 m3/s
Headworks
Weir
Type Concrete gravity type
Length 30 m
Crest Elevation of weir 763.00 m
Intake
Type Orifice Type
No. of Opening 1
Gallery width and depth 1.2 m x 1 m
Design discharge 0.98 m3/s

Approach canal
Type Rectangular
Length 16 m
Size (Width and Depth) 2 m x 2 m
Flow level at u/s 763.00 m
Desander
Type Single Chambered
No of units One
Length 16.0 m
Size (Width and Depth) 3.8 m x 3.9 m
Transition length (inlet / outlet) 4.5 m / 3.25 m
Particle size to be settled > 0.20 mm
Headrace Canal
Type Rectangular lined stone masonry
Length 1616 m including 25 m RCC crossing
Size (Width x Depth) 1200 mm x 1000 mm
Special Feature 25 m RCC Crossing (55 m-80 m)
Forebay
Size 18 m x 3.5 m x 3.2 m
FSL at forebay 760.00 m
Penstock
Type Surface type, Steel
Length 266 m
Internal diameter 750 mm
Thickness 5 to 8 mm
Penstock bifurcation diameter 530 mm
Powerhouse
Type Surface
Size 18.40 m x 10.22 m
Power house floor level 620.71 m
FSL in tailrace at powerhouse 618.50 m

Turbine
Type Pelton Turbine
Number of units 2 nos
Turbine axis level 620.00 m
Turbine rated capacity 2 x 0.498 MW
Rated net head 138.94 m
Rated turbine efficiency 91 %

Tailrace Canal
Type Rectangular
Size 1.5 m x 2.0 m
Length 60 m
Invert level of tailrace at powerhouse 620.00 m

Transmission line
Transmission voltage 11 kV
Line length 3.0 km
Connection point Parewadin VDC, Dhankuta district

Transformer
Number of unit 1
Rating 1250 kVA
Type 3-phase, oil immersed
Type of cooling ONAN
Number of phase 3
Frequency 50 Hz
Rated voltage
Primary (l.V. side) 6.3 kV
Secondary (H.V. side) 11 kV
Vector group symbol as per IEC 60076 YND11
Tap changer off load at high voltage winding,
+ 5% in steps of + 2.5% X 4
Percentage impedance at rated MVA base 5%
Generator
No. of units Two (2)
Type 3-phase, synchronous, vertical shaft
Rated Power 620 kVA
Rated Voltage 6.3 kV
Rated Frequency 50 Hz
Rated Power factor 0.8 (lagging)
Rated Speed 750 rpm
Rated Efficiency 96 %
Stator and Rotor insulation class F
Stator connection star with neutral earthed
Direction of Rotation clock wise as viewed from the top at
the unit
Short Circuit Ratio not less than 1.1
Excitation system brushless

Power and Energy
Installed Capacity 996 kW
Dry Season Energy 1.02 GWh/year
Wet Season Energy 4.338 GWh/year
Total Energy 5.359 GWh/year

Construction Period 24 months

Economic and Financial Indicators
Project cost NRs. 160.238 Million
Cost per kW US$. 2145.00
Net present value (at 10% discount rate) NRs. 54.76 Million
Internal rate of return (IRR) 14.26 %
Debt equity ratio 75:25
Interest rate on loan 10 %
Loan repayment period 10 Years

Volcano Hydropower Pvt. Ltd. , KMC: 09, Gairigaun, Kathmandu Page L-i

TABLE OF CONTENTS
Page No.
TABLE OF CONTENTS T-i

LIST OF FIGS L-i
1. INTRODUCTION 1
1.1 BACKGROUND 1
1.2 APPROACH METHODOLOGY 1
1.3 PREVIOUS STUDIES 2
1.4 OBJECTIVES OF THE STUDY 2
2. DESCRIPTION OF THE PROJECT AREA 3
2.1 LOCATION 3
2.2 PHYSICAL FEATURES 3
2.3 ACCESSIBILITY 3
3. FIELD INVESTIGATION AND DATA COLLECTION 5
3.1 TOPOGRAPHICAL SURVEY 5
3.2 COLLECTION OF AVAILABLE HYDROLOGICAL DATA 5
3.3 STREAM FLOW DATA 5
3.4 SEDIMENTATION DATA 5
3.5 GEOLOGICAL INVESTIGATION 6
4. HYDROLOGICAL STUDIES 7
4.1 CATCHMENT CHARACTERISTICS 7
4.2 DRY FLOW MEASURMENT 8
4.3 REFERENCE HYDROLOGY AND STREAM FLOW DATA 8
4.3.1 Stream Gauging 8
4.3.2 Mean Monthly Flow 8
4.3.3 Adoption of Design Discharge 9
4.4 FLOW DURATION CURVE 10
4.5 FLOOD HYDROLOGY 12
4.5.1 Design High Floods 12
4.5.2 Low Flow Analysis 13
4.6 COMPENSATION FLOW 13
4.7 CONCLUSIONS AND RECOMMENDATIONS 13
4.7.1 Conclusions 13
4.7.2 Recommendations 13
5. SEDIMENTATION STUDY 14
5.1 SEDIMENTOLOGY 14
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5.1.1 Himalayan Sediment Yield Technique 14
5.1.2 Regional Studies 15
5.2 CONCLUSION AND RECOMMENDATION 15
6. GEOLOGICAL STUDIES 16
6.1 REGIONAL GEOLOGY 16
6.2 GEOLOGY OF PROJECT AREA 17
6.2.1 Lithology 17
6.2.2.1 Headworks Area 20
6.2.2.2 Desanding Basin Area 20
6.2.1.1 Fore Bay 21
6.2.2.3 Penstock Alignment 22
6.2.2.4 Powerhouse Site 22
6.3 SEISMICITY 23
6.4 CONCLUSIONS AND RECOMMENDATIONS 24
7. STUDY OF ALTERNATIVE LAYOUT 25
7.1 HYDROPOWER PROJECT ALTERNATIVES 25
8. PROJECT OPTIMIZATION 26
9. PROJECT DESCRIPTION AND DESIGN 35
9.1 GENERAL 35
9.2 SITE CONDITION AND PROJECT SETTINGS 35
9.3 DESCRIPTION OF PROJECT CIVIL COMPONENTS 35
9.3.1 Headworks 35
9.3.2 River Diversion 36
9.3.3 Overflow Weir 36
9.3.4 Intake 36
9.3.5 Gravel Trap cum Desander 36
9.3.6 Headrace Canal 37
9.3.7 Forebay 37
9.3.8 Penstock, Anchor Block and Saddle Support 38
9.3.9 Powerhouse Complex 38
9.4 POWER FACILITIES: MECHANICAL EQUIPMENT 39
9.4.1 Introduction 39
9.4.2 General Design Criteria 39
9.4.3 Cooling Water and Service Water System 43
9.4.4 Drainage and Dewatering System 43
9.4.5 Compressed Air System 43
9.4.6 Oil Handling System 44
9.4.7 Ventilation and Air Conditioning System 44
9.4.8 Powerhouse Crane 45
9.4.9 Mechanical Workshop 45
9.4.10 Fire protection system 45
9.5 POWER FACILITIES: ELECTRICAL EQUIPMENT 45
9.6 INTRODUCTION 46
9.6.1 Scope 46
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9.6.2 General Design Criteria 46
9.6.3 Standards and Regulations 46
9.6.4 Generators and ancillaries 47
9.6.5 Transformer 49
9.6.6 Station auxiliary systems 49
9.6.7 Protection systems 51
9.6.8 Control System 51
9.6.9 Communication systems 52
9.6.10 High Voltage Switchgears 52
9.7 PROJECT DESCRIPTION AND DESIGN OF MECHANICAL AND
ELECTRICAL COMPONENTS 52
9.7.1 TRANSMISSION LINE 53
9.7.2 Transmission Line Requirements 53
9.7.3 11 kV Switchyard/ Interconnection point Arrangement 54
9.7.4 Construction power 54
10. POWER EVACUATION STUDY 56
10.1 INTRODUCTION 56
10.1.1 Existing or Under Construction Substations around the Project Area 56
10.1.2 Selection of Voltage Level and Conductor Size 57
10.1.3 Spread Sheet Calculation for Conductor Selection and Voltage 57
10.1.4 Power Evacuation Schemes 58
10.1.5 Economic Analysis, Comparative Study for selected options 59
10.1.6 7.0 Conclusion and Recommendation 61
11. ENERGY AND PROJECT REVENUE 62
11.1 GENERAL 62
11.2 POWER GENERATION 62
11.3 ENERGY GENERATION 63
11.4 REVENUE 63
12. CONSTRUCTION PLANNING 65
12.1 GENERAL 65
12.2 ACCESS AND INFRASTRUCTURE 65
12.3 ACTIVITIES ON THE CRITICAL PATH 65
12.4 CONSTRUCTION MATERIALS 65
12.5 DISPOSAL OF EXCAVATED MATERIALS 66
12.6 CONTRACT PACKAGE 66
12.7 CONSTRUCTION POWER 66
12.8 CONSTRUCTION SCHEDULE 67
13. COST ESTIMATES 68
13.2 CRITERIA, ASSUMPTIONS AND COMPONENTS 68
13.3 ESTIMATING METHODOLOGY 68
Volcano Hydropower Pvt. Ltd. , KMC: 09, Gairigaun, Kathmandu Page L-iv
13.4 ESTIMATING METHODOLOGY 69
13.5 ELECTRO MECHANICAL EQUIPMENTS 70
13.6 TRANSMISSION LINE AND SWITCHYARD 70
13.7 SITE FACILITIES, ACCESS ROAD AND ENVIRONMENTAL PROVISIONS 70
13.8 OTHERS 70
13.9 PROJECT COST 71
14. FINANCIAL ANALYSIS 72
14.2 CRITERIA AND ASSUMPTIONS 72
14.2.1 Project Financial Cost 72
14.2.2 Project Financial Benefits 72
14.2.3 Discount Rate 72
14.2.4 Cost Datum 72
14.2.5 Planning Horizon 73
14.2.6 Currency Exchange Rate 73
14.2.7 Operation and Maintenance Cost 73
14.2.8 Taxes, Duties and VAT 73
14.2.9 Royalties 73
14.2.10 Debt Equity 73
14.2.11 Interest Rate 74
14.2.12 Loan repayment Period 74
14.2.13 Financing Structure 74
14.3 SENSITIVITY ANALYSIS 75
14.4 CONCLUSION AND RECOMMENDATION 77
CONCLUSION AND RECOMMENDATIOIN 78
14.5 CONCLUSION 78
14.6 RECOMMENDATION 78
14.2.1 GENERAL 78
14.2.2 DETAILED DESIGN 78

LIST OF REFERENCE
ANNEX A : COST ESTIMATE

ANNEX B : CONSTRUCTION SCHEDULE

ANNEX C : ENERGY CALCULATION

ANNEX D : FINANCIAL ANALYSIS

ANNEX E : DESIGN CALCULATIONS

ANNEX F : POWER EVACUATION

ANNEX G : SITE PHOTOGRAPHS
Volcano Hydropower Pvt. Ltd. , KMC: 09, Gairigaun, Kathmandu Page L-v

LIST OF FIG
Page
Fig. 2.1 Project Location 4
Fig. 4.1 Catchments area of Teliya Khola at Proposed headworks sites 7
Fig. 4.2 Long- Term annual hydrograph of Teliya Khola by Various Methods 10
Fig. 4.3 Flow Duration Curves at headworks sites of Teliya Khola 11
Figure 6.1: Geological Map of Nepal Himalaya (After Dahal, R.K., Hasegawa, S., 20081 16
Fig. 6.2 Geological Map of Project Area 17
Fig 6.3: Triangulated Irregular Network of the project Site on the basis of Counter height 18
Fig 6.4:Slope Map of the project area 18
Fig 6.5.:Aspect Map of the project area 19
Fig 6.6:Landuse Map of the Project area 19
Fig 6.7 : Intake area 20
Fig 6.8.: Test Pit in Desanding Area 21
Fig 6.9: Location of Forebay showing pit during field survey 21
Fig 6.10: Penstock Alignment 22
Fig 6.11: Pit in Powerhouse Area 22
Fig 6.12: Simplified seismic risk map of Nepal after Bajracharya 1994 24
Fig 8.1: Variation of Specific Energy Cost with Installed Capacity 31
Fig 8.2: Variation of EIRR with Installed Capacity 32
Fig 8.4: Variation of Net Present Value with Installed Capacity 33
Fig 8.4: Variation of Net Present Value with Installed Capacity 33
Fig 9.1: Turbine selection 39
Fig 10.1 : Capital Cost versus different Schemes 60
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Fig 10.2 : Annual loss versus different Schemes 60
Fig 10.3 : Total Annuity versus different Schemes 61
Fig 11.1 Monthly variation of power generated 62
Fig 11.2: Monthly and average revenue generation 64
Fig .13.1 Variation of Net Present value for different alternatives 76
Fig. 13.2 Variation of Internal Rate of Return for different alternatives 77
Fig. 13.3 Variation of Benefit Cost Ratio for different alternatives 78

Volcano Hydropower Pvt. Ltd. , KMC: 09, Gairigaun, Kathmandu Page L-vii

LIST OF TABLES

Page

Table 2.1: Geographical coordinates of the project 03
Table 4.1: Dry flow measurement of Teliya Khola 08
Table 4.2 Mean Monthly Discharge (m
3
/Sec) by MIP Method 9
Table 4.3 Mean Monthly Discharge (m
3
/Sec) by WECS/DHM Method 9
Table 4.4 Comparison of Long-Term mean Monthly Discharges 9
Table 45 Probability of exceedence and Discharges 11
Table 4.6 Estimated high floods for Tame Khola 12
Table 4.7 Low flood Frequency Analysis 13
Table 6.1: Output of Pit Analysis (Desanding Basin) 20
Table 6.2: Output of Pit Analysis (Forebay) 21
Table 6.3: Output of Pit Analysis (Powerhouse) 23
Table 8.1 Range of Options 27
Table 8.2 Average Monthly Flows 28
Table 8.3 Energy and Revenue Calculation 29
Table 8.4 Summary of Project Cost 29
Table 8.5 Result of Economic Analysis 31
Table 9.1 : Description of penstock thickness, length and weight 38
Table 9.2 : Specification of Pelton Turbine 40
Table 9.3: Specification of Generator 48
Table 9.4: Specification of Transformer 49
Table 10.1 : Alternative Power Evacuation Scheme: Teliya Khola SHP , Dhankuta (996 kW 59
Table 11.1 Power and Energy generated 63
Table 12.1 Unit Rate of Construction Materials 69
Table 12.2 Summary of Project Cost 71
Table14.1 Loan Repayment Schedule 74
Table 14.2 Source of Financing 75
Table 14.3 Financial Parameters fo different Scenarios 75

Volcano Hydropower Pvt. Ltd., KMC: 09, Gairigaun, Kathmandu Page 1
1. INTRODUCTION

1.1 BACKGROUND

The perennial nature of Nepalese rivers and the steep gradient of the country's topography provide
ideal conditions for the development of some of the world's largest hydroelectric projects in
Nepal. Nepal has about six thousand small and big rivers hurling from the Himalayas and high
mountains towards the plain of Terai. The hydropower potential of these rivers is estimated to be
about 83,000 MW of which 42,000 MW is technically and economically feasible. Nepal has
generated 562.35 MW power from the hydropower plants, 55.13 MW from the thermal plants.
Thus, the total installed capacity is about 700 MW in September 2010. The present power demand
in the country is more than 1000 MW which is justified by the fact that load shedding is also
happening in rainy season in the year 2010. The demand is increasing by more than 10 percent per
annum; however, it is suppressed due to limited supply. With the adequate supply of power, the
demand for industrial and commercial use is expected to grow rapidly. Rapid growth of industrial
establishments and increasing electrification require more supply of power in future. Therefore,
there is enough demand for hydropower energy and hence, there is ample scope of developing
small hydropower projects in Nepal.
The Government of Nepal has adopted liberal policy to attract private investment for the
development of small hydropower projects. Nepal Electricity Authority (NEA) has recently
announced its open price for the projects with capacity up to 25 MW by the private developers.
Nepal Electricity Authority will purchase the power at NRs. 4.00 for the wet months and NRs.
7.00 for the dry months. Poush to Chaitra (four months) are considered as dry months. There will
be an annual increment of 3 percent in the price for first nine years. The energy price for the
project having the capacity more than 25 MW will be fixed with the negotiation.
Mr. Madhav Prasad Lingthep , the developer first identified the site for Teliya Khola Small
Hydropower Project in the year 2009. Then a team of experts has made extensive field study to
arrive at this outcome. Epsom Engineering Consultancy Pvt. Ltd. and Modern Hydropower and
Energy Development Pvt. Ltd. JV has carried out feasibility study in 2010. The project is about 10
km south north east from district headquarter of Dhankuta. The nearest local market is Dhankuta
Bazar. Transportation facility is available from Dhankuta upto the Jorpati. There is about 7 kM
earthen road upto Teliya VDC. Only 3 kM new road is required for the proposed site.

1.2 APPROACH METHODOLOGY

To fulfil the above objectives of the project certain methodologies are adopted, which are: Desk
Study, analyze of the previous study, field survey and investigation, and data analysis, project
design, quantity and cost estimation, construction planning and scheduling and financial analysis.

1.3 PREVIOUS STUDIES

The developer prepared the desk study report of Teliya Khola Small Hydropower Project by
hiring technical experts, analyzed the previous studies and data related to the project. The analyses
includes the desk study report on Feasibility Study report of Teliya Khola Small Hydropower
Project by the developers , topographical maps, socio-economic, hydrological, stream flow data as
well as other available published information.
1.4 OBJECTIVES OF THE STUDY

The present study has the following activities:
i) Study and review of the available data and information on the Project;
ii) Topographical, geological and environmental field investigation of the Project site
together with hydrological study and investigation of Teliya Khola;
iii) Assessment of the power potential of the Project site and optimization of the proposed
plant with respect to the size of the plant, i.e. the installed capacity;
iv) Study of the Project with interconnection to the national power grid and evaluation of this
concept with all relevant implications:
v) Layout, feasibility study level design and dimensioning of all the Project components;
vi) Tentative cost estimate of the transmission line in the Project area including
interconnection to the national power grid;
vii) Preparation of the bill of quantities and estimation of the Project cost;
viii) Financial and economic evaluation of the Project;
ix) Preparation of report including all drawings and details essential for the feasibility study.
Besides, the outputs of the current study are manifold. Some of the main outcomes of this study
are:
i) Establishment of the main technical parameters of the Project;
ii) Determination of the optimum Project layout;
iii) Fairly accurate estimation of the Project cost;
iv) Determination of the financial indicators of the Project;
v) Establishment of a strong base for further studies and detailed design of the Project.
2. DESCRIPTION OF THE PROJECT AREA

2.1 LOCATION

Teliya Khola Small Hydropower Project is located in Teliya and Parewadin VDC of Dhankuta
district and Hamarjung VDC of Terhathum district. The project site lies in Eastern Development
Region of Nepal. It is located in between latitude 27
o
00' 00" and 27
o
02' 40" North and between
longitudes 87
o
25' 23" and 87
o
26' 36" East. The project boundaries are also presented in table 2.1
below. The catchment area of the project site at headworks is about 38 km
2
. The high mountain
peaks ranging in elevation upto 2700 m surround the basin.

Table 2.1: Geographical coordinates of the project
Particulars Latitude, N Longiture, E
Project Area Boundary 2700'00" to 2702'40" 8725'23" to 8726'36"

The basin is characterized by steep gradient and surrounding mountains are characterized by mild
sloped landscape, alluvial terrace varies with elevation. Settlements and mixed forests are found in
the catchment. The snowfall is experienced seasonally in higher mountains.
2.2 PHYSICAL FEATURES

Most part of both Teliya and Parewadin VDC have been electrified by National Grid. The project
area in other aspect is back in development.

2.3 ACCESSIBILITY

Fig 2.1: Project Location
All weather roadhead for this scheme is Jorpati of Dhankuta district. Gravel road is available upto
Chulachuli. Seasonal road is available upto Teliya. Only 3 kM access road is required to
implement this project.

3. FIELD INVESTIGATION AND DATA COLLECTION

3.1 TOPOGRAPHICAL SURVEY

Topographical survey of project site had been carried out in March 2010 by Total station.
Topographical mapping for about 10 hectors of project area i.e. head works site, headrace canal
alignment site , fore bay site, penstock site and powerhouse site were prepared for 1:10000 and
1:1000 scale for general layout of the project site and at other scales for showing the plan of
various structures as shown in drawing section.
The present status of topographic maps prepared is as follows:
1. Weir and intake site area, scale 1:200 with contour lines of 1m intervals.
2. Powerhouse area, scale 1:100 with contour lines of 1m intervals.
3. Project area (General Layout Plan), scale 1:10000 with contour line of 5 m intervals.
4. Waterways alignment, scale 1:1000 with contour lines of 1 m intervals.
5. Cross section survey in weir site areas, Powerhouse and tailrace area.
All these maps are prepared in digital format. The relevant design drawings are presented in
Volume II of this report.
3.2 COLLECTION OF AVAILABLE HYDROLOGICAL DATA

The Teliya Khola does not have any permanent flow gauging station so the long term flow data
are not available. The ungauged hydrological models are used for the hydrological analysis of the
project. More details are presented in hydrological report section of this report.
3.3 STREAM FLOW DATA
The discharge of the stream was measured in March 23, 2010 by salt dilution method and is
found to be 206 lps. There are no gauging stations installed in this stream basin and the only
reliable means of flow analysis is MIP analysis with spot flow measurement for short interval
of time. Since the catchment area of the scheme is very small, i.e, 38 km
2

, MIP method is used
for hydrological analysis.
3.4 SEDIMENTATION DATA

Sediment size distribution and the particle size distribution are required for the design of the
desanding basin. There is no data available on Teliya Khola and its adjacent basins. Therefore the
data had to be estimated based on the Himalayan Sediment Technique.

3.5 GEOLOGICAL INVESTIGATION

Geological investigation of proposed Teliya Khola Small Hydroelectric Project was carried out in
the month of March 2010 by the technical team of the consultants. The results and description of
the findings are given in geological section of this report.
During this study, previous literatures and information related to the project site were collected
and field study data were analyzed. During the field visit, additional information were collected,
analyzed and reviewed.


4. HYDROLOGICAL STUDIES
4.1 CATCHMENT CHARACTERISTICS

The Teliya Khola is a tributary of Tamor River. The Tamor River is a major tributary of Arun River.
Arun River is a major tributary of Koshi River. The Teliya Khola lies in between Dhankuta and
Terhathum District. The total catchment area of the Teliya Khola at the proposed headworks site of the
Teliya Khola Small Hydropower Project is about 38.00 km
2
. The Teliya Khola is a perennial river. The
water of Teliya Khola originates from Mahabharata hills with the highest peak (Sukrabare Dada) at
elevation 2702 m.
The boundary line of the project is 27 00' 48" N to 27 02' 28" N as latitudes and 87 25' 23" E to 87
26' 37" E as longitudes. The proposed headworks site of the Teliya Khola Small Hydropower Project
lies at about elevation of 763.00 m. It is about 5 km upstream from the confluence with Tamor River.
The proposed powerhouse site of the Teliya Khola Small Hydropower Project lies at about elevation of
620.00 m and located at about 3 km upstream of the confluence with the Tamor Khola.
The average gradient of the river in between the dam site and powerhouse site is about 4.5 %. The
Teliya Khola basin drains towards north-south direction. Based on the topographical maps, there are no
lakes within the Teliya Khola basin. The Teliya Khola basin is mainly covered with scattered settlement
and mixed forest around the streams in the catchments. Agricultural fields on terraces and scattered
settlements dominate the area below 2,200 m. The information regarding the Teliya Khola drainage area
has been obtained based on the topographical maps of 1:25,000 scale compiled from aerial photography
of 1996 by the Survey Department of the Government of Nepal. The catchment area of the Teliya Khola
at headworks site of the project is shown in Fig 4.1 below.

Fig 4.1: Catchment area of Teliya Khola at proposed headworks site
4.2 DRY FLOW MEASURMENT
Since the catchment area of the project is small, i.e, 38 km
2
, the hydrological analysis is based
mainly on spot flow measurement at site. The flow measured in March 23, 2010 is taken as the
reference for the hydrological forecast base on Medium Irrigation Project (MIP) Method. The
field measurements are given in the table below.
Table 4.1: Dry flow measurement of Teliya Khola

4.3 REFERENCE HYDROLOGY AND STREAM FLOW DATA
4.3.1 Stream Gauging
The Teliya Khola, being an ungauged river, a field measurement of river discharge was made at
the proposed headworks site of the Project on March 23, 2010. The discharge of the river was
measured as 0.206 m
3
/s by salt dilution method.
4.3.2 Mean Monthly Flow
There are mainly three methods to derive the long term mean monthly flow. They are MIP and
Hydest (WECS/DHM) models and data generation from similar catchment. The catchment area of
the Teliya Khola Small Hydropower Project is very small and the nearby catchment area with
gauged river is not available. Therefore the data generation from similar catchment is not used in
this project. The other two methods which are used are briefly described below.

MIP Method
Using the field discharge measurement on March 23, 2010 and the MIP method of generating
long-term mean monthly flow data, the results are presented below in Table 4.2. The Teliya
Khola lies in region 4 according to MIP methodology.

Table 4.2: Mean monthly discharge (m
3
/s) by MIP method
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0.417 0.303 0.222 0.161 0.353 0.604 1.110 4.393 3.368 1.110 0.805 0.554
The long-term mean annual discharge at the headworks site is about 1.116 m
3
/s from the above
MIP method.
WECS/DHM Method
A study on 'Methodologies for Estimating Hydrologic Characteristics of Ungauged Locations in
Nepal' was published out by WECS and DHM in July 1990. This method is also called Hydest
Method. This study uses the approach of multiple regression equations relating the
physiographic and climatologic characteristics of the selected basins to the average monthly
flow values. Altogether twelve individual monthly regression equations were developed.
The results of this study are used as an alternate approach for estimation of mean monthly
discharges at the headworks site of Teliya Khola. The mean monthly discharges from
WECS/DHM method are shown in Table 4.3.
Table 4.3: Mean monthly discharge by WECS/DHM method
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0.511 0.436 0.382 0.365 0.457 1.759 5.422 6.661 5.162 2.272 1.011 0.667
4.3.3 Adoption of Design Discharge
The comparison of the derived long-term mean monthly flows at the proposed intake site by
various methods is shown in Table 4.4.
Table 4.4: Comparison of long-term mean monthly discharges
Month
Design
Discharge (lps) MIP Method (lps) WECS/DHM Method (lps)
Feb 850 303.00 436.35
Mar 850 222.00 382.18
Apr 850 161.00 364.71
May 850 353.00 457.06
Jun 850 604.00 1758.88
Jul 850 1110.00 5421.75
Aug 850 4393.00 6660.59
Sep 850 3368.00 5161.92
Oct 850 1110.00 2271.85
Nov 850 805.00 1010.99
Dec 850 554.20 666.54
Average 850.00 1116.68 2092.02
The above table shows that the derived long-term mean monthly flows at the intake site are
quite comparable. In most of the cases, the WECS/DHM method gives higher estimates
whereas MIP method gives lower estimates. Since the MIP method uses local data to adjust the
regional hydrograph, it should give reasonably accurate estimates through the dry season
months, which are critical in assessing the power and energy during the dry season. Hence, the
derived mean monthly flows from the MIP method have been adopted for this feasibility study
purpose.
The long-term annual hydrographs of Teliya Khola based on average monthly flows carried out
by different methods at the proposed headworks site are shown below in Chart 4.1 and Fig 4.2.
The horizontal straight line that gives an idea of availability of water for hydropower generation
represents the design discharge.
Comparison of MIP and Hydest Flow
0
1000
2000
3000
4000
5000
6000
7000
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Time in Months
D
i
s
c
h
a
r
g
e

i
n

l
p
s
Design Discharge (lps)
MIP Method (lps)
WECS/DHM Method (lps)
Design Discharge (lps)
MIP Method (lps)
WECS/DHM Method (lps)

Fig 4.2: Long-term annual hydrograph of Teliya Khola by various methods
4.4 FLOW DURATION CURVE
A flow duration curve (FDC) is a probability discharge curve that shows percentage of time a
particular flow is equaled or exceeded. Since MIP method is adopted for hydrological analysis,
FDC is also prepared based on this method. The probability of exceedance and the
corresponding discharge are shown in Table 4.5 below.

Table 4.5: Probability of exceedence and discharges
S.N. Probability of Exceedence Discharge (lps)
1 8.33% 4393.00
2 16.67% 3368.00
3 25.00% 1110.00
4 30.00% 1094.00
5 33.33% 1110.00
6 40.00% 850.00
7 41.67% 805.00
8 50.00% 604.00
9 58.33% 554.20
10 60.00% 511.00
11 66.67% 417.00
12 70.00% 375.00
13 75.00% 353.00
14 83.33% 303.00
15 91.67% 222.00
16 100.00% 161.00
The flow duration curve of Teliya Khola at proposed headworks site is shown below in Fig 4.3
based on the Hydest method. The design discharge 0.85 m
3
/s is the 40% probability of
exceedance.

Flow Duration Curve
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
8.33% 16.67% 25.00% 30.00% 33.33% 40.00% 41.67% 50.00% 58.33% 60.00% 66.67% 70.00% 75.00% 83.33% 91.67% 100.00%
Probability of Exceedence
F
l
o
w

i
n

l
p
s
FDC-Teliya Khola Intake

Fig 4.3: Flow duration curve at headworks site of Teliya Khola

(Note: The curve for 25% 6o 33.33% probability of exceedence seems straight-line since for region 4 , MIP has
same unit flow for july and October. )
4.5 FLOOD HYDROLOGY
In the hydropower projects, high floods are required to be computed for designing the
headworks structures as well as the powerhouse complex. It has been a common practice to
analyze the flood events that might occur during the driest periods for the purpose of the
construction of diversion headworks structures. Flood hydrology has been analyzed in two
parts- design high floods for the design of headworks, powerhouse, and other hydraulic
structures and dry season floods for the construction of river diversion structures.
4.5.1 Design High Floods
The study on 'Methodologies for Estimating Hydrologic Characteristics of Ungauged Locations
in Nepal (July 1990)' published by WECS/DHM uses the approach of regional flood frequency
analysis. The results of this study are used for estimation of flood discharges at the proposed
headworks site as well as the powerhouse site.
The study shows the results from the frequency distribution parameter prediction method,
which is a variation of the multiple regression method. The independent variable that is found
to be the most significant in all of the regression analyses is the area of the basin below 3000 m
elevation. This area represents the portion of the basin that is influenced by the monsoon
precipitation. In addition, Hydrological Studies of Nepal (1982) published by WECS uses the
same parameter.
The catchment area below 3000 m elevation at headworks site of the Teliya Khola Small
Hydropower Project is 38 km
2
. The results of the flood estimates from the Hydest method are
presented in Table 4.7 below.
Table 4.6: Estimated high floods for Teliya Khola
Return Period (yrs) Daily (m
3
/s) Instantaneous (m
3
/s)
2 27 47
5 42 81
10 53 109
20 64 138
50 79 180
100 92 215
200 104 254
500 123 309
1000 137 356
5000 174 478
10000 191 537
As a general practice, instantaneous peak flood with a return period of 100-year is adopted as
the design flood. Hence, for the hydraulic design of headworks structures and tailrace
structures, the corresponding adopted design flood is 215 m
3
/s.
4.5.2 Low Flow Analysis
The duration curve of long-term inflow series predicts the flow duration for an average
hydrological year. Individual dry and wet years would display different flow duration
characteristics. For a hydroelectric plant, sustained low flows experienced in dry years are
critical to the operation resulting in nil energy generation when the flow decreases below the
minimum permissible limit. The low flow discharge values, in hydropower projects, not only
decide the design flow to be diverted but also serve for environmental purposes as to how much
water must be left in the river system for the survival of the downstream aquatic flora and
fauna.
In order to predict the likelihood of this occurring, a probabilistic low flow analysis is carried
out using the methodology by WECS/DHM for ungauged river basins. The results of the low
flow analysis are given in Table 4.7 below.
Table 4.7: Low flow frequency analysis
Return Period (Years) Daily Low Flow (m3/s)
2 0.27
10 0.09
20 0.06
4.6 COMPENSATION FLOW
The long-term mean monthly flow for the driest month, April, at the intake site is 0.161 m
3
/sec
from the MIP method. A flow equivalent to 10% of the driest flow, i.e., 0.0161 m
3
/sec will be
released downstream as the compensation flow for downstream habitants in the river for
fulfilling environmental protection requirements.
4.7 CONCLUSIONS AND RECOMMENDATIONS
4.7.1 Conclusions
The following conclusions have been drawn at the end of the hydrological studies performed
under this chapter:
The adopted design discharge is 0.85 m
3
/s corresponding to 40 % dependable flow.
The 100-year design flood is 215 m
3
/s at the proposed headworks site.
The mandatory compensation flow in Teliya Khola downstream of the proposed
diversion weir is 0.0161 m
3
/s.
4.7.2 Recommendations
Based on the conclusions drawn above, it is recommended that frequent discharge
measurements of Teliya Khola shall be made before the implementation of the project to verify
the long term mean annual flows.


5. SEDIMENTATION STUDY

5.1 SEDIMENTOLOGY

The sediment transportation by rivers originating from the Himalayas is found quite high in Nepal
especially during peak monsoon floods. The sediment concentration and particle size of sediments
are very important to design the desanding basin and hydraulic structures. The sediment yield in
Teliya Khola is found due to the river gradient, landslides, gully erosion in upper reaches, bank
erosion, fragile geological conditions, etc. Teliya Khola carries sediments ranging from silt to
huge boulders by cutting both of its banks as well as those transported into it by its tributaries. It is
essential to remove the sediment loads not to cause severe abrasion to the runner and other parts
of the turbine.
In the absence of sediment data of Teliya Khola at proposed project area, analysis of sediment
load is carried out by prevailing empirical methods- Himalayan Sediment Yield Technique, and
Regional Studies.
5.1.1 Himalayan Sediment Yield Technique
In accordance with Himalayan Sediment Yield Technique, the physiographic zones are divided
into five regions with probable range of sediment yields. The Zone Specific Sediment Yield
(ZSSY) has been given below:
Physiographic Regions Range of yield (t/km
2
/year)
Tibetan Plateau 500-1000
High Himalayan 300-1000
High Mountain 1000-4000
Middle Mountain 3000-8000
Siwalik 5000-15000
The Himalayan Sediment Yield Technique involves estimating sediment yields for various
physiographic zones multiplying the sediment yields by corresponding catchment areas. The
equation is:
Sediment Yield (t/km
2
/year) = Zone Specific Yield x Zone Catchment Area
In this technique, the catchment boundary is divided into different physiographic zones depending
upon geological conditions, rainfall and slope of catchment areas. The major area of the
catchment basin is dominated by settlements and contributes less volume of sediments. The Teliya
Khola Basin falls in middle mountain region and corresponding specific sediment yields is
considered as 5000 t/km
2
/year. The catchment area of Teliya Khola Small Hydropower Project is
38 km
2
. Hence, the estimated sediment yield of Teliya Khola at proposed headworks site is about
0.190 million tons per year.
5.1.2 Regional Studies
This method was developed by K. P. Sharma and S. R. Kansakar (1992) after studying the
sediment data of 12 river catchments of Nepal. It is based on regression equations to compute the
sediment transport. This regression equation is applicable to the Middle Mountains and Siwaliks.
The equation is:
A
sy
= - 2.20992 + 0.05439(A
rock
)
0.5
+ 0.0748(A
2000
)
0.5
+ 0.05097(MWI)
0.5

Where,
A
sy
= Total annual suspended sediment yield in million tons
A
rock
= Area of rocky catchment = 20 km
2

A
2000
= Catchment area below 2000 m = 25 km
2

MWI = Monsoon Wetness Index in mm = 1500 mm
The above equation gives the annual suspended sediment yield of 0.325 million tons per year.
Assuming 20% bed load of the suspended yield, total annual sediment is estimated to be about
0.389 millions tons per year at headworks site.
5.2 CONCLUSION AND RECOMMENDATION

The recommended mean annual sediment concentration at the intake site is 0.389 millions ton per
year. It is also strongly recommended that the measurements of suspended sediment be carried out
in the future on a daily basis covering the principal months of the monsoon period and including
discharge measurements so that a sufficient data base is available for a reliable and representative
assessment of suspended sediment transport in the Teliya Khola at the proposed headworks site.


6. GEOLOGICAL STUDIES

6.1 REGIONAL GEOLOGY

The Himalaya is a part of the great arcuate orogenic belt in central Asia extending from east to
west, about 2500 km length with width of 230 to 350 km. The Himalaya was evolved as a result
of repeated deformation of the sedimentary successions that accumulated in the Tethys sea
lying between the Indian continent in the south and the Eurasian continent in the north. It lies in
a unique geological position i.e. the Indian subcontinent with normal thickness (35 km) to the
south and the Tibetan plateau the highest plateau in the world, with a double crustal thickness
(70 km), to the north (Thakur 2001). The origin of the Himalaya was attributed to the continent-
continent collision of the Indian and the Eurasian plate around 55 million years ago. Due to the
continued movement of the Indian plate, the northern margin of the Indian continent was sliced
into slivers along the three principal intracrustal thrusts: the Main Central Thrust (MCT), the
Main Boundary Thrust (MBT), and the Himlayan Frontal Thrust (HFT) from north to south
respectively (Gansser 1964; Schelling and Arita 1991). The Higher Himalayan Crystalline
(HHC) thrust sheet consists of amphibolite to granulite facies metamorphic rocks and is
separated by a normal fault, the South Tibetan Detachment Fault (STDF) from the overlying
Cambro- Ordovician to Eocene Tethys Sedimentary Series (TSS) (Burg et al. 1984; Pecher
1991).Further south the HHC over thrust to the low grade (greenschist to lower amphibolites
facies) metasedimentary rocks of the Lesser Himalayan Sequence (LHS). Similarly the MBT
carries the LHS on to the Mio-Pleistocene Siwalik rocks. The Himalayan Frontal Thrust (HFT)
is the youngest thrust and forms the boundary between the Siwaliks and Quaternary sediments
of the Indo-Gangetic plain.

Fig 6.1: Geological Map of Nepal Himalaya (After Dahal, R.K., Hasegawa, S., 2008

Auden (1935), Lombard (1952, 1958), Bordet and Latreille (1955) Bordet (1961), Hagen
(1969), Kyastha (1969), Hashimoto et al. (1973), Schelling (1989), Schelling (1992), Upreti et
al. (2000) Chamlagain (2000) and Rai et al. (2001) studied the geology of the eastern Nepal.
The extensive thrust sheet covering the most of eastern Nepal represents the HHC zone in the
eastern Nepal. The area has been well mapped by Schelling and Arita (1991). The deep erosion
of this thrust sheet has produced large window e.g. Taplejung and Arun window in the eastern
Nepal. The LHS is characterized by low-grade metamorphic rocks of greenschist to lower
amphibolite facies metamorphic rocks (Rai, 2001).

6.2 GEOLOGY OF PROJECT AREA

6.2.1 Lithology
Geologically the project area lies in Himal Gneiss, Panglema Quartzite of Himal Group and Sarung Khola
Formation of Kathmandu Group whose geological age is Precambrian. The project area is characterized by
medium to coarse grained quartz muscovite biotite schist, banded gneisses, gneiss and schist.

Fig 6.2: Geological Map of Project Area

6.2.1.1 Slope and Aspect
Triangulated Irregular Network (TIN) is a list of points with their coordinates that are stored into a file that
also contains information about the topology. TIN objects contain four element types: nodes, edges,
triangles, and hulls. Nodes are the most fundamental element of a TIN and the only element type that
references spatial coordinates (x,y,z). An edge is an oriented line segment that connects two nodes. Three
edges connect three nodes to form a triangle that satisfies the Delaunay criterion. Triangles represent
elementary areas of the surface that describe topological relationships between all other elements of the
TIN data. A hull represents the area covered by a TIN structure. Interpolation of z-values is only valid
within a hull region. With the help of topographic coverage map TIN of the area is prepared and is shown
below.

Fig 6.3: Triangulated Irregular Network of the project Site on the basis of Counter height

Slope is computed by dividing a line's vertical rise or fall by the distance the line travels on the
surface (the "rise over the run") - usually expressed as a degree. The slope map shows that
headwork area has slope of 20-30 degree and penstock alignment manly passes through slope of
30 to 50 degree where as powerhouse area has slope of 0 to 10 degree which is shown below.

Fig 6.4:Slope Map of the project area
The compass direction towards which a slope faces, measured in degrees from North in a clockwise
direction is the aspect. Most of the projects areas have east to Northeast face aspect.

Fig 6.5.:Aspect Map of the project area
6.2.2 Geological and Geotechnical Investigation

Fig 6.6:Landuse Map of the Project area

6.2.2.1 Headworks Area
The proposed Headworks area lies around 20m upstream from the confluence of the Chhak
Khola and Teliya Khola in the Left bank of Teliya Khola. The bedrock is characterized by grey
color fine to medium grained strong Gnesiss rock having RQD more than 60% and weathering
grade of II degree

Fig 6.7 : Intake area
6.2.2.2 Desanding Basin Area
The desanding basin lies in right bank of Tame Khola on the cultivated terrace. The test pit of
1mX1m was dug to understand the subsurface condition of the area and the result is shown in
the table. The cultivated terrace is characterized by Gravely Clay SAND. The examination
reveals that the materials are alluvial deposits.
Table 6.1: Output of Pit Analysis (Desanding Basin)
Type of Material Content
Boulder 10%
Gravel 15%
Sand 70%
Fines 5%
Total 100%

Fig 6.8.: Test Pit in Desanding Area
6.2.1.1 Fore Bay
The penstock alignment passes through moderately strong gneiss rock with weathering grade of
III to IV degree. And reached to the cultivated area near to the channage 1+ 635 .This area is
suitable for the construction of the Forbay.

Fig 6.9: Location of Forebay showing pit during field survey
1mX1m test pits was dug to understand the subsurface geological condition of the area and the result is
shown in table.

Table 6.2: Output of Pit Analysis (Forebay)
Cobbles, gravel 30%
Sand 40%
Fines 30%
Total 100%
6.2.2.3 Penstock Alignment
In most of the section the penstock alignment passes through forest area. At the beginning the
penstock alignment passes through the left bank of Teliya Khola but after 70m from the intake it
crosses the Khola and runs toward right bank of Teliya Khola to reach the fore bay. The area is
characterized by medium to strong strength, medium to coarse grained quartz muscovite biotite
schist, banded gneisses with weathering grade of II to III degree.

Fig 6.10: Penstock Alignment
6.2.2.4 Powerhouse Site
The proposed powerhouse lies in the right bank of Teliya Khola. The powerhouse area is
characterized by cultivated terrace of alluvial deposits.

Fig 6.11: Pit in Powerhouse Area

1mX1m test pits was dug to understand the subsurface geological condition of the area and the result is
shown in table.
Table 6.3: Output of Pit Analysis (Powerhouse)

Cobbles, gravel 10%
Sand 50%
Fines 40%
Total 100%

6.3 SEISMICITY

Interseismic monitoring of deformation with the help of the GPS geodesy indicates that Main
Himalayan Thrust is locked along the Himalaya of Nepal and the stress build up at the tip of
locked zone is responsible for the belt of micro seismic activity that runs along the front of the
high range. Motion along the Main Himalayan Thrust is thus probably stick slip and must produce
recurring large earthquakes similar to 1934 Nepal Bihar event. The moderate magnitude
earthquake is generated from thrust fault which originate within the microseismic belt in front of
the high Himalaya in the ramp. The belt of microseismicity at the front of higher Himalaya is
continuous and makes a straight trend from 87E to 82 E. west of 82E the seismicity belt is much
wider and diffused. This feature is well correlated with proposed imbrications of thrusts in
geological section (DeCelles et al 1998). Thus Nepal Himalaya can be broadly divided into two
distinct section Eastern and Western seismic belt along transverse feature passing near 82E
longitude.

The generation of earthquakes is confined to the crystal depth of about 20 km. In this region it is
generated as a result of release in stresses that are accumulated in the geodynamic under- thrusting
process of the Indian plate against the Eurasian plate. The shallow depth earthquakes of the depth
up to 6-Km are the result of strike slip dislocation. Earthquakes of greater magnitudes are
recorded from the south of the seismicity belt and small and medium earthquakes have been
recorded along the Himalayas seismic zone. The seismic zone seems to run through middle part of
country sub parallel to the Himalayan chain confining between two major tectonic features MCT
and MBT. There has not been any large earthquake since 1934. According to Bajracharya (1994),
the project area lies in the medium risk zone.


Fig6.12: Simplified seismic risk map of Nepal after Bajracharya 1994

6.4 CONCLUSIONS AND RECOMMENDATIONS

Teliya Khola Hydropower project lies in Teliya VDC of Dhankuta and Parewadin VDC of
Terhathum in Eastern Development Region of Nepal. Geologically the project area lies in
Himal Gneiss, Panglema Quartzite of Himal Group and Sarung Khola Formation of Kathmandu
Group whose geological age is Precambrian. The project area is characterized by medium to
coarse grained quartz muscovite biotite schist, banded gneisses, gneiss and schist.
The project is of run-of river type and all major structures will be constructed on surface. Only
small protection work is required in some part for slope stabilization. The present geological
studies show that the area is suitable for the construction of Hydropower project.


7. STUDY OF ALTERNATIVE LAYOUT

7.1 HYDROPOWER PROJECT ALTERNATIVES

Alternative sites were studied before finalizing the proposed site. The studied site was the only
feasible site as per the available site conditions like design head and flow. The length of headrace
for this scheme is about 1616 m long with penstock length of 266 m. Apart from the site, the two
distinct alternatives are as following:
All Penstock Pipe (Alternative I)
Headrace Canal Plus Penstock Pipe (Alternative II)
Option I : All penstock Pipe
Option I was studied in detail and this site is not recommended because of the following
reasons.
The length of headrace is very long for available flow and head conditions.
The penstock pipe should be exposed in possible cases and in such case , it might
create problem in paddy field.
It is very difficult to install the penstock pipe in rounded terrain where there are a
number of bends in the alignment. The civil structures will be complex and it may
also increase the project cycle.
The major cost of buying and installing penstock pipe goes out of the project area thus
this option minimizes local employment.
Additional access road may be required to lift huge penstock pipes which increases
the project cost.
Option I : Headrace Canal Plus Penstock
This option is the only feasible option for this project site. This option is chosen because of
the following reasons.
It is easier to construct headrace canal.
Construction materials like stone, sand and aggregate are easily available around the
project area.
Both local skilled and unskilled people can get longer employment by this option.
Construction period will be minimum as compared to penstock option is such
topographical conditions.
Hence, option II with headrace canal plus penstock pipe is chosen for this project.


8. PROJECT OPTIMIZATION

8.1 Range of Options

8.1.1 General

The optimization of the design discharge and thereby the installed capacity has been carried out
for the selected layout of combined canal and penstock pipe option. The present study is based on
the river hydrology, project layout with intake, desanding basin, conveyance system (consisting of
crossing, headrace canal and penstock) and powerhouse. The prevailing topography of the project
site is suitable for a simple run of river plant.

The principle objective of the optimization study was to optimize the following:

The plant capacity and corresponding plant discharge,
The diameter of the penstock pipe of the water conveyance system for each plant
capacity option.

The optimization of the plant capacity is carried out with the optimization of design discharge. In
case of simple run-of river scheme, height of the weir, minimum operating level and high flood
level have insignificant impact on the design discharge. These elements are more influenced by
the general topography of the diversion weir site, design flood magnitude and the river
characteristics, which are common to all installed capacity options. Therefore, all the options are
based on the respective discharge and subsequent hydraulic design of the water conveyance
system from the river intake to the powerhouse.

8.1.2 Assumptions

The optimization of the plant-installed capacity is based on the following assumptions:

A compensation flow of 0.016 m
3
/s is required to be released downstream of the
headworks. This flow corresponds to the 10% of the minimum monthly flow as
per the prevailing practice.
Self consumption, losses and outage has been assumed to be 10 % of the total
annual energy.
The combined efficiencies of turbine, generator and transformer have been
assumed as 86 % respectively.
The optimization of the installed capacity of the plant or the design discharge of the plant was
undertaken by economic analyses with results expressed as economic internal rate of return
(EIRR), benefit cost ratios and specific energy costs. Five different installed capacities/discharges
have been considered for the optimization process. Dimensioning and cost estimates for each
option were prepared. The power benefits were determined for each option and compared with the
costs. The objective was to determine the element size, which minimizes the specific energy cost
(levellized cost of generation) and maximizes the benefits of power supply described by the
discounted benefit/cost ratios and EIRR.

8.1.3 Approach and Methodology

The optimization procedure in this study follows the general approach outlined below:

1. To establish a series of discharge options based on the hydrology,
2. To estimate the minimum operating level based on the diversion requirement and flushing
requirement of the desanding basin and the location of the proposed surface desanding
basin. This will be the same for all options.
3. To estimate the size of free flow spillway and undersluice to pass the design flood of
1:100 year. This too will be common for all options.
4. To prepare preliminary design of intake, approach canal, desanding basins, flushing
structure, forebay water conveyance system, powerhouse and the tailrace for each capacity
option.
5. To optimize the diameter of the surface steel penstock pipe for each capacity option.
6. To estimate the costs of the individual structures for each capacity option and determine
the total project cost of each option.
7. To determine the quantum of monthly and annual energy generation and estimate the
corresponding benefits.
8. To conduct the economic analysis for each option.

8.1.4 Optimal Installed Capacity

In order to determine the optimal installed capacity, it was necessary to study a range of capacities
within which the optimal option can be found. The following range of plant capacities (Table 8.1)
was selected in order to adequately define the trend of the benefit cost analysis. The plant
capacities were adopted as given below, within which the optimum capacity is expected to lie.
Then the corresponding discharges were derived for each capacity assuming an overall efficiency
of turbine, generator and transformer as 86%. The gross head is calculated from normal water
level at the forebay to the center of turbine. The head loss in the penstock pipe has been estimated
for each option.

Table 8.1: Range of Options
S.N. Options
Percentage of flow
exceedance
Design Flow
(m
3
/s) Net Head (m)
Installed Capacity
(kW)
1 Option A 30 1.094 138.97 1283
2 Option B 40 0.85 138.94 996
3 Option C 50 0.588 138.97 689
4 Option D 60 0.511 138.87 599
5 Option E 70 0.375 138.81 444

The capacity and energy potential of a particular option is dependent on the river flows. The long-
term monthly river flows (Table-8.2) generated at the intake site of the project has been used in
the computation of the energy. To maintain aquatic life in the dewatered reach of the river, 10% of
the minimum monthly average flow i.e, 0.016 m
3
/s is released from the headworks. This has been
deducted from the river flows while assessing the energy potential of the different options.

Table No. 8.2: Average Monthly Flows
S.N. Month Available Mean Monthly Flows (lps)
1 January 417
2 February 303
3 March 222
4 April 161
5 May 353
6 June 604
7 July 1110
8 August 4393
9 September 3368
10 October 1110
11 November 806
12 December 554

8.2 Conceptual Layout and Dimensioning

The proposed project is conceived as a simple run of river type plant. The main civil components
of the project are: diversion weir, sluice structure, intake structure, crossing, gravel trap,
connecting canal, desanding basin, forebay, penstock, and powerhouse and tailrace conduit
respectively.
The diversion weir has its spilling length of 30 m. Sluice structure has been placed on the right
bank of the river. A divide wall is provided in between the diversion weir and sluice structure
parallel to the watercourse. Intake structure is aligned at about 97
0
with the weir axis. The crest
level of the diversion weir is fixed at an elevation of 763 m above mean sea level (msl). By such
layout of the Intake structure, negligible bed load (sand and gravel) will enter into the canal
through the trash rack. The side intake having single opening of size 1.2 m x 1 m to be constructed
at the intake to trap water from the river. There is a 20 m long rectangular canal, just after the
canal gate at the intake. A gravel trap is associated in the intake structure near the undersluice. A
desanding basin is placed on the alluvial deposited bushy area on the right bank of the river. The
desanding basin is 3 m above the existing riverbed so that the flood level in the river will not
damage the structure. There is also flushing system to flush the sediments. The discharge during
the closure of the machine and overflow of water passes to the Teliya Khola through the spillway.
The penstock pipe of about 266 m (upto bifurcation point) in length is aligned on the slope
between the desanding basin and the powerhouse on the right bank of Teliya Khola.
The powerhouse and the tailrace structures are placed in the forest area on the right bank of the
Teliya Khola. A powerhouse of 18.4 m * 10.27 m size will be constructed in the plain area at an
elevation of 720 m from the mean sea level. The location of the powerhouse is designed in such a
way that the discharge to the units can be delivered by a single penstock bifurcated just before the
powerhouse. Pelton turbines will be used. Discharge coming out of the turbine is delivered by two
separate channels which afterwards are combined to a single covered rectangular type tailrace
conduit of 1.5 m *2.0 m size and thereby the discharge passes to the Teliya Khola. The centre line
of turbine will be at 720 m.

8.3 Estimate of Energy Production

The calculation of energy is made considering the 10% outage. The dry energy cost is taken as
NRs 7/kWh and the wet energy cost is NRs 4/kWh. The energy production and revenue of the
different options are shown in the Table 8.3

Table 8.3: Energy and revenue calculation
S.N. Options
Percentage
of flow
exceedance
Design Flow
(m
3
/s)
Installed
Capacity
(kW)
Annual
Energy
(GWh)
Minimum Annual
Revenue (NRs
000)
1
Option A 30
1.094
1283 5.917 26,506
2
Option B 40
0.85
996 5.359 24,495
3
Option C 50
0.588
689 4.195 19,622
4
Option D 60
0.511
599 3.815 18,068
5
Option E 70
0.375
444 3.091 14,975

8.4 Cost Estimates

The cost estimates for the optimization study are preliminary one. Out of the five options, the cost
calculation for one option is made in detail and then the costs of others are calculated based on the
changed structures.

Based on the preliminary layout and the design of the individual structures of different capacity
option, the cost estimation is prepared. Summaries of the cost for each option are shown in Table
8.4.

Table 8.4: Summary of Project Cost (000)
SN Particulars
Option
A
Option
B
Option
C
Option
D
Option
E
A Discharge availability (%) 30 40 50 60 70
B Design Discharge (m3/s) 1.094 0.85 0.588 0.511 0.375
C Capacity in kW 1283 996 689 599 444
1 Civil Works 77897 66605 53517 49594 41535
2 Electromechanical Equipments 53766 40903 32259 30109 25808
3 Transmission Line 4500 4500 4500 4500 4500
4 Road and Site Facilities 14030 8798 11040 8625 8050
5 Environmental Cost 4140 2645 2415 2415 1898
6
Engineeerring and
Administration Cost
12347 9876 8298 7619 6543
7 Miscellaneous Cost 15433 12345 10373 9524 8179
8 Interest During Construction 18211 14567 12240 11239 9651
9 Total Project Cost 200,324 160,238 134,643 123,625 106,164
10 Cost per kW 2,082 2,145 2,606 2,752 3,188

8.5 Economic Analysis

8.5.1 Economic Parameters

Optimization study for this project used an annual energy price provided by NEA for calculating
the benefits. According to new policy, NEA will buy the power at NRs 7/unit for dry season and
NRs 4/unit for wet season. Poush, Magh, Falgun and Chaitra, four months are taken as the dry
months and remaining eight months are taken as wet months. This buying rate is only for the first
year after completion of the project. There are 9 yearly increments with 3 percents. This increment
is not considered in the optimization study. In order to estimate the capacity and energy potential
of the different options, a spreadsheet model was developed. In determining the capacity and
energy potential of each plant capacity option, the model takes into account the following:

Average energy based on annual flow duration curve at the dam site.
The net head has been calculated for each option.
The reduction in available flow due to the requirement of compensation flow release. For
the purpose of the plant capacity optimization a release of 0.016 m
3
/s was adopted. This
flow corresponds to the 10% of the minimum monthly flow.
Scheduled and unscheduled outage, losses and self consumption is taken as 10% for this
study.

8.5.2 Economic Results

Economic analysis has been performed to find the capacity at which the cost per kilowatt and
specific energy cost is the lowest and the capacity at which the net present value will be the
maximum. For the purpose of economic analysis the replacement costs of electro-mechanical
equipment and transmission line have also been taken into account. Analysis was conducted by
including all the costs to construct, operate and maintain the project. Costs and energy benefit
streams were assessed at present value at 10% discount rate in order to arrive at present day
energy cost.

In order to compare the different options on the basis of specific energy cost, EIRR and benefit
cost ratio, the present value of the costs and benefits of all the options were determined to the year
before construction. Economic analysis of all capacity options were carried out. These analyses
were based on the following assumptions:

The construction period is assumed to be 2 years for all options.
Economic Life of the Project : 50 years
Economic Life of Electromechanical equipment: 25 years
Economic Life of transmission line: 25 years
Discount Rate : 10 %
The exchange rate of 1 US$ is equal to 75.00 NRs
Annual cost of operation and maintenance is taken as 1.5 % of the project cost.

The various economic indicators like the specific energy cost, benefit cost ratio, net present value
(NPV) and the economical internal rate of return (EIRR) were calculated for all of the cases of the
different capacity options.

The summary of the results of the economic analysis for all the cases are shown in Tables 8.5.

Table 8.5: Results of Economic Analysis
S.N. Options
Installed
Capacit
y (kW)
Project
Cost (10
6

NRs)
Cost
per
kW in
US $
Specific
Energy
Cost
(NRs/kWh
)
IRR
(%)
B/C
Ratio
NPV (10
6

NRs)
1
Option A
1283 200.32 2,082 3.66 12.10% 1.17 32.49
2
Option B
996 160.24 2,145 3.04 14.26% 1.35 54.76
3
Option C
689 134.64 2,606 3.47 13.55% 1.29 37.91
4
Option D
599 123.63 2,752 3.50 13.59% 1.29 35.33
5
Option E
444 106.16 3,188 3.71 13.07% 1.25 25.75

Specific Energy Cost Vs Installed Capacity
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
1283 996 689 599 444
Installed Capacity in kW
S
p
e
c
i
f
i
c

E
n
e
r
g
y

C
o
s
t

(
R
s
.
/
k
W
h
)

Fig 8.1: Variation of Specific Energy Cost with Installed Capacity

IRR (%) vs Installed Capacity (kW)
11.00%
11.50%
12.00%
12.50%
13.00%
13.50%
14.00%
14.50%
1283 996 689 599 444
Installed Capacity in kW
I
R
R

(
%
)

Fig 8.2: Variation of EIRR with Installed Capacity

B/C Ratio VS Intsalled Capacity (kW)
1.05
1.10
1.15
1.20
1.25
1.30
1.35
1.40
1283 996 689 599 444
Installed Capacity (kW)
B
/
C

R
a
t
i
o

Fig 8.3: Variation of Benefit/Cost with Installed Capacity

NPV VS Installed Capacity (kW)
0.00
10.00
20.00
30.00
40.00
50.00
60.00
1283 996 689 599 444
N
P
V

i
n

M
i
l
l
i
o
n

R
s
.

Fig 8.4: Variation of Net Present Value with Installed Capacity

Cost Per kW VS Installed Capacity (kW)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1283 996 689 599 444
C
o
s
t

p
e
r

k
W

(
U
S
$
)

Fig 8.5: Variation of Cost per kW with Installed Capacity
8.6 Recommendation of Installed Capacity

All the options show benefit cost ratio more than 1.0, internal rate of return more than 10% and a
positive NPV. The analysis shows that the project is economically viable for all the options. With
reference to the maximum net present value and specific energy cost, 40% exceedance flow
option i-e Option B of 996 kW is recommended for the detailed study and construction. This
option has the least cost per kW (US$ 2145). The EIRR, B/C ratio and NPV of this option are
14.25%, 1.35 and NRs 54.76 millions respectively.


9. PROJECT DESCRIPTION AND DESIGN

9.1 GENERAL

The Teliya Khola Small Hydropower Project is ROR project on Teliya Khola. The main
structures of the project are overflow weir, intake, gravel trap cum desanding basin, headrace
canal, RCC crossing, penstock pipe, anchor blocks, saddle supports, powerhouse and tailrace
conduit respectively. The feasibility study has concluded its installed capacity as 996 kW.
9.2 SITE CONDITION AND PROJECT SETTINGS

The project site is stable and almost passes across the left bank of Teliya Khola for about 100 m
length and a simple RCC crossing crosses Teliya. Simple structures are sufficient for controlling
the flow at intake and naturally the intake site is very suitable and even during high floods the
velocity of flow in weir site is stable. Though the high flood level is calculated to be about 3.94 m
above normal water level , in actual this height does not extends above 2 m as per physical study
of the site.
The length of weir is 30 m and the normal water level at weir is at an elevation of 763.00 m. The
height of the overflow weir is 2.00 m. The flow to the desanding basin will be by intake and the
flow inlet structure to headrace will be located at an right angle to weir axis. The desanding basin
is located 16 m far from intake. Sediment larger than 0.2 mm settled at the desanding basin and
flushed out. The size of desanding basin is 16 m x 3.8 m x 3.9 m and is located on the left bank of
the Teliya Khola. A flushing channel is arranged at the end of the basin to clean out the deposited
sediment as when required. The dimension of headrace canal is 1.2x1.0 m designed to carry the
required discharge up to the forebay. The penstock pipe of variable thickness and 0.75 m internal
diameter will carry the design discharge from forebay to all the way to the turbine for the power
generation, installed in the powerhouse.

9.3 DESCRIPTION OF PROJECT CIVIL COMPONENTS

9.3.1 Headworks

The headwork consists of about 30 long gravity type of overflow weir, intake, intake gate and 16
m long single chambered desanding basin with proper flushing arrangement and the 10 m long
side spillway. The intake is capable of passing the discharge of 0.98 m
3
/s. The intake is provided
with the trash rack, intake gate and stop log. The gravel trap cum desanding basin is located on the
right bank of the Teliya Khola on the flat area 16 m after the approach canal. Head Work General
Layout Plan is shown in drawing section in Volume II. Design calculation is given in the Annex
E.

9.3.2 River Diversion

Since the dry flow of the stream is only about 161 lps, the discharge of the stream can be by
passed easily by temporary means and hence no permanent structures are proposed for river
diversion during construction.
9.3.3 Overflow Weir

The weir axis is located at Teliya Khola about 763.00 m and its length is 30 m. The weir is
designed to pass the 1 in 100 year of flood 215 m
3
/s. The weir crest has been fixed at EL. 763.00
m to maintain the full supply level (FSL). The maximum height of the weir from the bottom of the
foundation is 2.00 m. Apron of sufficient length has been provided at upstream and downstream
of weir. Downstream of weir has been fixed at elevation of EL 761.00 m. The weir has been
checked for stability against sliding and overturning during critical condition, creep length,
bearing capacity.
The main features of the weir are listed below:
Design flood = 215 m
3
/s (1 in 100 year flood)
High flood level = 766.94 m
Level of weir crest = 763.00 m
More details are given in Annex E for design calculations.

9.3.4 Intake
The flow in the canal will be controlled by single sluice gate proposed ahead of desanding basin.
The velocity of low at intake is assumed to be 0.85 m. During the overflow as well the flow will
be controlled by these gates. More details are given in the Annex for detail design calculation in
Annex E.
9.3.5 Gravel Trap cum Desander

In order to reduce the erosion of the guide vanes and runners of the turbines by suspended
sediments, a desanding basin is required. The dimensions of the desanding basin depend on the
characteristics of the river, the design discharge, and the particle size to be removed. The de-
sander plan and cross section is shown in drawing section in volume II of this report. The design
calculation is presented in Annex F.
Water shall preferably be supplied continuously to the plant during flushing of the settling basins
in order to obtain a reliable power production during the monsoon. The maximum size of
sediment particles that can be accepted in the flow is dependent on the characteristics of the
turbines. Due to the uncertainty regarding the rating formulas for the suspended sediment, the trap
efficiency of 90 % of all particles with a fall diameter of 0.2 mm and the factor of safety of 65 %
is considered to avoid damage of the turbines.
The desanding basin lies on the right bank of the Teliya Khola. The desanding basin is designed
for the design discharge of 0.978 m
3
/s including 15 % for flushing purpose. The desanding basin
is designed to trap 90% of the critical grain size of 0.2 mm diameter. The settling velocity for the
critical grain size is 0.02 m/sec. The size of forebay tank is 18 m x 3.5 m and its active water
depth is 3.2 m. This gives the flow through velocity of 0.12 m/sec. The basin will be 18 m long
with an additional 7.7 m extra length for the inclined transition at the beginning and end.
A gate (1500 mm x 1500 mm) is provided at the end of the desander basin pool, which will
control the water level in the desander basin, and this gate will also be used during the flushing of
the desander basin. Then headrace canal of 1.2 m x 1.0 m passes for upto forebay. The flushing
channel is provided at the end of the purging channel. The sections of the basin are shown in
drawing section in volume II of this report. More details are given in the Annex F for detail design
calculations.
9.3.6 Headrace Canal
The length of headrace canal is 1616 m which excludes the length of gravel trap cum desanding
basin. Headrace alignment passes across rocky land at left bank for upto 70 m length. It crosses
Teliya khola at this chainage. Then it passes along kharbari for remaining length.

The size of the canal is 1.20 m x 1.00 m. The canal would be constructed of 200 mm RCC (1:2:4).
Technical details of canal are as following.

Design discharge (Q) = 0.935 m3/s ( with 10% extra allocation)
Longitudinal Slope of Canal = 1 in 520
Manning's Coefficient (n) = 0.015
Width of Canal (m) = 1.2 m
Water Depth (m) =0.6 m
Freeboard (m) =0.4 m

9.3.7 Forebay
Forebay tank is located at a chainage of 1616 m from intake. Forebay tank is located at the sloppy
ridge and cutting of sloppy land is proposed for the entire structural bed. The size of the tank is 18
m x 3.5 m x 3.2 m. In order to reduce the erosion of the guide vanes and runners of the turbines by
suspended sediments and controlling the flow in penstock , a forebay basin is required. The
dimensions of the forebay basin depends on the characteristics of the river, the design discharge,
and the particle size to be removed. The tank is designed for the retention time of 3 minutes , the
trap efficiency of 90% with a particle falling diameter of 0.2 mm and the factor safety of 65%.The
forebay plan and cross section is shown in drawing section in Volume II. The overflow will be
passed to Chhak Khola from 150 m long spillway canal. More details about design is given in the
Annex E for design calculation.
9.3.8 Penstock, Anchor Block and Saddle Support
Total length of penstock pipe upto bifurcation point is 266 m. The optimum diameter is found to
be 750 mm by the analysis of penstock cost versus lost of revue from head loss for different
diameters. The thickness of bifurcation pipe will be 530 mm with thickness of 8 mm. The
thickness of penstock varies from 5 mm to 8 mm.

Table 9.1 : Description of penstock thickness, length and weight
S.N.
Description of
work No
Length
(m)
Breadth
(m)
Height/
Dep.
(m)
Quantity
kg. Unit Remarks
1
5 mm thick
Pipe 1 50 103.4 5170
Unit Wt/m=103.4
kg
2
6 mm thick
Pipe 1 80 123.2 9856
Unit Wt/m=123.2
kg
3
7 mm thick
Pipe 1 50 144.1 7205
Unit Wt/m=144.1
kg
4
8 mm thick
Pipe 1 86 165 14190
Unit Wt/m=165
kg
5
Bifurcation
Pipe (530 mm
dia.) 1 20 117.7 2354
Unit Wt/m=117.7
kg
Total Weight of Penstock Pipe 38775

A number of anchor blocks have been proposed to anchor the penstock pipe. Anchor blocks have
been proposed for every horizontal and vertical bends. Total number of anchor blocks and support
piers is 12 and 41 respectively. Support piers are placed at an average spacing of 5 m. Bothe
anchor block and support piers would be constructed of PCC (1:3:6) with 40% plums. The bases
of the structures would be constructed of PCC(1:2:4). More details are given in drawing section.

9.3.9 Powerhouse Complex
The powerhouse will contain two units of 620 kW turbine/ generator units, associated electrical
and mechanical equipment, a service bay and a control room. The powerhouse is surface type and
is on the bank of Teliya Khola in paddy field. It contains two units of pelton turbines coupled
with generators in horizontal axis with an installed capacity of 996 kW. The dimension of the
powerhouse is 18.40 x 10.22 and the height is variable for equipment room and operator / office
room. The Space of the powerhouse is designed for housing two generating unit of 620 kW, repair
bay and workshop room. The powerhouse plan and sections are shown in drawing section in
Volume II of this report.

9.4 POWER FACILITIES: MECHANICAL EQUIPMENT
9.4.1 Introduction
The optimization study has shown that the optimal plant discharge capacity will be 0.85 m
3
/s and
the total installed capacity will be 996 kW with a net head of 138.94 m.

Additional investigations reveal that installation of two (2) number of power units is more
economical and practical. Main reason behind this selection is the operational consideration.
Although a single unit would reduce cost, higher number of units would increase energy
generation capability compared to a single unit option in case a unit got damaged.

Based on the available head and discharge, considering two units, horizontal shaft Pelton Turbine
appears as the most feasible option.

The powerhouse mechanical equipment comprises:

Turbines
Governors
Turbine inlet valve
Cooling water system
Drainage water and dewatering system
Compressed air system
Oil handling system
Ventilation and air conditioning system
Powerhouse crane
Mechanical workshop equipments
9.4.2 General Design Criteria
General design and performance specification for the mechanical equipments are as per the
current standards issued by the International Electro-technical Commission (IEC).

Turbines

Both turbines are sized to operate at a design discharge and gross head of 0.425 m
3
/s and 138.94
m respectively, when the reservoir is at normal operation level which results in the turbine shaft
power of 498 kW each.

Fig 9.1: Turbine selection

Based on the preliminary design, each of the turbines will have a speed of 750 rpm and specific
speed will be 49.5. For selection of speed of the turbine a number of aspects were analyzed.
Generally, low speed machines are more expensive in cost compared with high speed machine.
On the other hand, higher speed is more prone to flow interference phenomenon during operation.

The turbine will be directly coupled to the generator through an intermediate shaft. Such provision
will allow removal of turbine runner without dismantling parts of the generator. The turbine shall
have oil-lubricating guide bearings.

The principal characteristics and name plate data of each of the horizontal shaft type Pelton
Turbines will be:

Table 9.2 : Specification of Pelton Turbine
Rated output, kW 996
Type Pelton, Hhorizontal
Rated discharge, m
3
/s 0.85
Rated Net head, m 138.94
Rated speed, rpm 750
Max. efficiency (%) 91
Surge tank operation level (masl) 760
Tailwater level (masl) 620
No. Of Units 2

For operation and Maintenance purposed the vanes will be designed in such a way that they can
be dismantled and replaced with spare ones in a relatively short time. It should also be ensured
that pitted parts of the vanes can be repaired by grinding or by welding without necessity of
replacing the whole. On the other hand, in case of more serious damage it should be ensured that
the entire runner of the turbine could be disassembled and replaced with a spare runner within a
short period of time. In addition, the turbine will have a single runner clamped to the lower flange
of the turbine shaft for convenient removal of the turbine runner without disassembling the
generator.

Turbine Governor

Each turbine is equipped with Proportional Integral Derivative (PID) type electro-hydraulic servo
system for the wicket gate operation. Governors will permit independent unit operation and will
ensure stable governing in parallel operation. In combined operation, they can regulate the
required power even during fluctuation of the reservoir level. In case of frequency fluctuation in
the system, an automatic switch-over to speed control will be initiated to stabilize the power
system frequency. In addition a simplified opening controller enables a continuation of the turbine
operation, in case the speed and power controller with the electronic feed-back device fails.

Economical optimization from the dimensioning of the penstock, tailrace and required flywheel
effect of the generator results in the following data:

Speed rise during full load rejection: 45% maximum
Pressure rise during full load rejection: 30% maximum

The turbine governor system includes the following control functions:

load frequency control
Main inlet valve control
wicket gate control
manual mode operation
local and remote operation

The governor system consists of the following Main units:

digital turbine governor
hydraulic control unit
oil pressure system
accumulator system
mechanical / hydraulic over-speed trip device

The turbine governor electronic cabinet includes the following:

PID (Proportional, integral and derivative) control of load / frequency by a microprocessor
based system
servo amplifier for control of servo valves in hydraulic control unit
signal converters for the feedback position signals
load / frequency reference increase / decrease functions
frequency measurement equipment including output signal for 45% over speed
logical functions for internal start / stop sequences
equipment for automatic and manual operation
I/O terminals for remote control

The digital governor control panel will display governor operational status, error messages and
parameters that are adjustable during operation. The following control functions may be executed
from the control panel:

Selection of local command mode
Selection of auto / manual mode
Load reference value increase / decrease
Frequency reference increase / decrease
Adjustment of any parameter in stop or manual mode

The turbine governor is equipped with automatic control functions for local and remote start/stop
sequences, frequency control at no load, grid synchronizing and connection, load control,
electronic gates operator cam and normal and emergency stops. The system is also possible for
operating in manual mode. The turbine governor reference values (load, frequency and speed
droop) will be adjustable during operation.

The Hydraulic Control Unit contains control valves and electro-hydraulic servo system parts for
the Wicket gates. It also contains the control valves for the Main inlet valve and other unit valves.
The servomotor should be of sufficient capacity for driving the entire hydraulic control unit.

The hydraulic control system has adequate number of electro-hydraulic servo systems for trouble
free operation. The servo system has one common valve block. The control valve block includes
three equal shutdown valves, one pilot operated control valve for the hydraulic/mechanical over-
speed trip devices, one control valve for auto/manual mode and one control valve for operating
the gates in manual mode.

During normal operation in load / frequency control, the servo valves will be in service. However,
the system may be operated in manual mode load control if a fault occurs. This function is similar
to load limit control by a conventional turbine governor.
The shutdown valves will override the servo systems. This means that a stop signal will close
gates regardless of the governor functions itself.

The control valve block for the Main inlet valve includes two equal open / close valves and one
pilot-operated control valve connected to the hydraulic / mechanical over-speed trip device. A
hand-operated emergency closing valve is also connected to the Main inlet valve servomotor.

The oil pressure unit for the governor system should be of sufficient capacity to drive the
governor and actuate the oil-hydraulic servomotors of the associated turbine inlet valve. The rated
pressure of the oil pressure system is of suitable bar for operation of the hydraulic control unit for
smooth regulation of Main inlet valve and the gates.

The oil pressure system is designed for suitable pressure and consists of:

oil tank with drain valve
inspection hatch
oil filler with breather filter
oil level inspection glass

The following instrumentations are included:

electronic pressure gauge with digital display
Electronic pressure switches for control of un-loader valves, start and stop of standby oil
pump and low and critical low oil pressure alarm. The electronic pressure switches may be
connected to the power plant DC battery supply or an appropriate AC power supply
level switches for low and critical low oil level in the tank
temperature gauge for oil temperature in oil tank with electrical switch for high and
critical high temperature
An oil cooler with thermostat-controlled valve is located at the sump tank. The cooler has
easy access for Maintenance and cleaning.

A valve for drainage of the oil pressure system is located underneath the sump tank.
The accumulator system consists of bladder accumulators connected to an accumulator block. The
accumulator block includes drainage valves, shutoff valves, pressure relief valves and pipe
connections. The capacity of the accumulator is sufficient to supply twice the oil volume of the
servomotors measured form the point when the oil pressure is such that the un-loader valves close,
until the critical low oil pressure stop signal is triggered. In addition, the remaining oil volume
and pressure in the accumulator is sufficient to open and close the servomotors once and to keep
the gates closed at full water pressure.

Charging equipment for the bladder accumulators is included.

9.4.3 Cooling Water and Service Water System

The cooling and service water system will supply water in sufficient quantity to the following
components:

Main generator coolers
bearing oil coolers
governor oil coolers
turbine shaft sealings
washing and cleaning points

The system taps water from the tailrace pit for the cooling purpose. The water system is served by
a filter station comprising:

two pre-filter in each supply line
two self-cleaning rotary strainers
valve and piping
AC and DC pumps

9.4.4 Drainage and Dewatering System

Adequate drainage and dewatering system for the turbine floor and switchyard are designed. The
dewatering will be done immediately, through a properly designed system. In case of turbine
floor, drains leads to sump pit at proper locations and dewatering is done using sump pump to
tailrace. Outlet of the drainage pipe is arranged above the maximum flood level. Drainage pumps
with spares are of adequate capacity for dewatering pumps with associated valves and pipe works
are located in the drainage sump.
In general, the drainage and dewatering system serves the following purposes:

drain the powerhouse seepage water
dewater the power conduit
drain the powerhouse in the event of a pipe fracture
drain the switchyard

9.4.5 Compressed Air System

Two separate compressed air systems with required pressure are provided, namely:

a service compressed air system
a governor compressed air system

Both the systems are fed by two compressors. Under normal operating conditions, one compressor
acts as duty and the other as stand by. The service air system supplies compressed air for:

brakes of the generator
Ring piping in the powerhouse for connection of pneumatic tools
Control equipment of the air system

The governor air system supplies compressed air due to air lost by leakage or absorption for the
air / oil pressure vessel of the turbine governors.

9.4.6 Oil Handling System
This consists of two separate systems for lubrication and governor oil supply. The oil transfer and
treatment system consists of the following Main parts:

adequate number of oil storage tanks
adequate number of oil transfer pump
one oil purifier equipment
supply and return piping
fire extinguishing equipment for the treatment room
control and safety device

Storage tanks, oil purifiers and transfer pumps are planned in a special room arranged on the
turbine floor. Separate piping, tanks and transfer pumps is provided for supply and return lines in
order to avoid mixing of non-purified and purified oil. Abundant storage capacity is provided with
two storage tanks, each containing a volume equal to the entire hydraulic and lubricating oil
volume of one power unit.

9.4.7 Ventilation and Air Conditioning System
Ventilation system for the powerhouse is of natural type with provision for adequate number of
smoke exhaust fans, supply air fans and return air fans and for control room air conditioning
system is used.

Main purposes of the ventilation system for the powerhouse are as follows:

provide adequate fresh air for the powerhouse personnel
remove heat generated by the mechanical and electrical equipments
provide smoke exhaust ventilation in case of fire to minimize the circulation of smoke and
product of combustion
provide CO
2
evacuation from the generator enclosure following operation of the generator
fire protection system

The ventilation system includes air-conditioning flow, ventilation airflow, re-circulating air flow
and exhaust airflow.

The powerhouse air conditioning system is used to provide fresh, filtered and cooled air to the
plant room and areas including control room, office rooms, visitor room, relay room, lobby, first
aid room and other important areas. These areas are ventilated by packaged type air conditioners
and ventilation system. Each of the air conditioning units are sized for 100% load standby service.
Ambient air from the toilet, kitchen room, and locker room and storage rooms is continuously
exhausted out of the plant. In addition, unit electric heaters, wall mounted or hung from ceilings,
in the following locations are furnished: cooling water valve room, workshop tool room and
turbine floor. Ventilation system is provided in various powerhouse rooms and areas where
ambient is not air conditioned and the areas are divided into different zones which have fresh
filtered outside air continuously supplied, for example, switchgear room, office floor, machine
hall, generator floor, turbine floor and the draft tube floor.

9.4.8 Powerhouse Crane
One double girder Electric Overhead Travelling (EOT) crane with a hook capacity of 12/3 tons is
proposed inside the powerhouse. Both the units will be handled by the crane. This crane is used
for lifting and handling any equipment during installation, Maintenance and operation of the
plant. It is anticipated that the generator, rotor and shaft are the heaviest part to be lifted by the
EOT crane. The crane is equipped with one Main and one auxiliary hoist. It should be noted that
additional lifting devices such as monorails, chain blocks, wheeled platform/trolleys etc are
required for lifting and moving equipment in areas which are out of reach of the overhead crane.
Access is provided to the overhead crane by staircase for Maintenance.
In addition, the crane has an emergency stop button switch. Provision for manual operation of
auxiliary hoist is also provided in case of emergency.

9.4.9 Mechanical Workshop
The mechanical and electrical workshop is equipped with a number of machine tools and tools for
pneumatic and electric appliances for the Maintenance of the mechanical, electrical equipments
and hydraulic steel structure at the site. In addition, it also has adequate space for storing a spare
runner and other turbine and generator related accessories, for instance gates lever, cam, set of all
wearing parts for the turbine guide bearing, turbine guide bearing, bearing oil cooler, relay of each
type, set of speed sensing device for governor, hydraulic control valve of each type, governor oil
pump, set of lubrication fittings, set of ring and gasket for butterfly valve servomotor, one set of
relay for generator protection and other parts as recommended by the specific manufacturer later
on. The workshop is located near the installation bay.

9.4.10 Fire protection system
The power plant and its major equipments need to be protected against fire hazards. It is guarded
against fire with the following two levels of operations:

fire detection
fire fighting

Detectors, for instance, heat detector, ionization detector, optical detector, smoke detector are to
be installed in the plant. These detectors initiate fire alarms installed at appropriate locations. In
addition, conduit wires, outlet boxes, junction boxes and accessories, should have electrical
supervised fire alarm system.

The fire fighting system for the power plants comprises fire hydrants for generators / transformers
and installation of portable fire extinguishers for other rooms. Water fire extinguishing system is
installed for each unit of the generator and transformer, manual operated type for the generators
and automatic system with spray nozzles (a high pressure water deluge sprinkle system) for the
transformer respectively. Also, both generators have CO
2
fire extinguishing system.

Water for above system is obtained from a pressurized water storage tank located somewhere near the
powerhouse.

The portable extinguishers are of dry chemical heavy-duty type and air pressurized type.
9.5 POWER FACILITIES: ELECTRICAL EQUIPMENT

9.6 INTRODUCTION
9.6.1 Scope

Purpose of the electrical studies was to identify principle electrical components in and around the
powerhouse for safe and economic plant operation. All the electrical equipments conform the
relevant International Electro-technical Commission (IEC) or equivalent national or international
standards.

The electrical equipments of the power station mainly comprise the following:

Two synchronous generators, with output of 620 kVA, 6.3 kV, 750 rpm
Generator Main circuits
One number of three phase power transformer with capacity 1250 kVA and rating of
6.3/11 kV
medium voltage switchgear and installations
auxiliary transformers
low voltage switchgears
AC and DC system
cabling
lighting system
earthling and lighting protection systems
control systems
protection systems
communication systems

9.6.2 General Design Criteria

Dimensioning, design and layout of various components and installations considered following
features and aspects:

Ratings to safely cope with all normal and fault conditions, avoiding any overstressing of
material and equipment
Equipment to be of standard design, providing highest degree of safety, reliability,
availability and ease in operation
Equipment arrangements to consider the adequate space and access for the transport,
installation, commissioning, operation and Maintenance

Under normal operating conditions, the plant is manned and operated in automatic mode,
controlled from the control room. Future tele-control from the load dispatch centre will be
possible by extending the proposed control system accordingly.

The plant will not operate in black start mode.

9.6.3 Standards and Regulations

Generation voltage level of 6.3 kV at 50 Hz has been chosen as per the technical and economic
point of view.

Besides, following system parameters have been considered during the selection:
11 kV systems
Nominal voltage: 11 kV
Highest system voltage: 12.1 kV
Phase and frequency: 3 phase, 50 Hz
Rated lighting impulse withstand voltage (peak value)
o Power Frequency withstand: 275 kV
o Impulse withstand : 650 kV
Fault level 3 phase, 3 s: 31.5 kA
Neutral earthling: solidly earthed
6.3 kV system
Nominal voltage: 6.3kV
Highest system voltage: 7 kV
Insulation level: 275/650 kV
Fault level 3 phase, 3 s: according to detail design
Neutral earthing: generator neutral via resistor loaded earthing transformers,
system neutrals solid
400 V system
Nominal voltage: 400 V
Fault level 3 phase, 3 s: according to detail design
Neutral earthing: solid
DC system
Nominal voltage: 110 V
Voltage variations: +10% - 15%
Fault level: 10 kA
Neutral earthing: unearthed
UPS system
AC: 230 V, 50 Hz
DC: 110 V

9.6.4 Generators and ancillaries
The generators are of three-phase, synchronous brushless type in a vertical arrangement to be coupled with
the turbines. The generator is of modern optimum designed machine with ability to perform the required
functions under specific conditions.

The machine is designed as a self ventilated enclosed machine with built-on air / water heat-exchanger,
flywheel, pneumatic braking, two flushing oil lubricated flange-mounted bearings and a separate
lubricating oil system unit.

The excitation system is of autonomous brushless type with a built on exciter machine and a rotating diode
bridge.

The generator is provided with a pneumatic braking activated by an electrical motor operated compressed
air unit located under or closed to the disc brake. It is an air operated disc system controlled by compressed
air braking power acting on a disc (the flywheel) at the NDE of the shaft. The generator is provided with
oil-lubricated thrust and radial bearings of the Babbitt type.
Main characteristics of the generator are presented in table below:

Table 9.3: Specification of Generator
Description Parameters Units
Number of units 2 Nos.
Rated output 620 kVA
Rated speed 750 rpm
Operating range 0.8 (lag) 1 (unity) 0.95 (lead) (adjustable
with excitation)

Rated voltage 6.3 kV
Rated frequency 50 Hz
Type of construction synchronous with brushless excitation system
Excitation system fully static, brushless, digital type AVR with
rotating diode

Braking system pneumatic
Class of insulation F/F
Temperature rise limit B
Class of protection IP 54
Temperature monitoring of bearing 2 x 2 PT 100
Temperature monitoring of stator
winding
3 x 2 PT 100
Fire fighting system manually operated, water and CO2
Cooling water cooled
Efficiency above 96%

Besides these, equipments for limiting and regulating (both automatic / manual mode) on
generator rotor current are included. Voltage setting devices and necessary control switches are
included. These equipments are of tropical design and work satisfactorily at a temperature of
maximum 400 C.

Generator Main circuit
The individual generator line terminals is connected with the6.3 kV generator cubicle stationed at
switchgear room by XLPE cables. The outputs from each cubicle are connected to a common 6.3
kV busbar. The two generator cubicles have one common 6.3 kV busbar. For connecting the
busbar with the unit step-up transformers, single core XLPE type cables are used. These cable
systems are routed via the cable gallery and the cable shaft, connecting the powerhouse cavern
with the switchyard.

9.6.5 Transformer
To elevate the generation voltage to the transmission voltage level of 11 kV, a single three phase
step-up power transformer is installed at the switchyard. The power transformer is of Outdoor
type, 50Hz, 1250 kVA, 6.3/11 kV, oil immersed, double wound with copper winding
continuously rated and arranged with vector group of Dyn11 with the neutral brought out on the
star side. Transformer is contained in a mild-steel plate of radiator-cooled tank and in general
conforms to the IEC or equivalent International Standard. Temperature rise as measured in oil and
the winding by resistance measurement should not exceed 50
0
C over an ambient temperature of
40
0
C.
It is recommended that an off-load tap-changer (OLTC) be provided to compensate for changes in
the system operating characteristics throughout the life of the power plant. The proposed tap range
is 2 2.5%. The cooling should be ONAN.
The transformers parameters are summarized below:
Table 9.4: Specification of Transformer
Parameters Value
Number One, three phase
Rating 1250kVA
Cooling ONAN
Primary Voltage 6.3 kV
Secondary Voltage 11 kV
Vector Group Dyn11 (Solidly grounded neutral)
Frequency 50 Hz
Taps off-load 2X 2.5%
Each power transformers are provided at least with the following protections:
Transformer differential relay
Over-current relay
Earth fault relay
Restricted E / F
Transformer over fluxing relay
Buchholtz relays (gas operated)
Relays for winding temperature protections
Low oil level (alarm only)
Trip circuit supervision relay
9.6.6 Station auxiliary systems
The station auxiliary systems comprise the following:
Medium voltage (6.3 kV) switchgear and installations
The 6.3 kV switchgear is of factory assembled, metal-clad, type tested, utility type, equipped with
draw-out type vacuum circuit breakers, comprising feeders for the generators and station auxiliary
transformers.
Four, 6.3 kV switchgear cubicles are located at the switchgear room of the powerhouse. Each
switchgear cubicles, comprising current & potential transformers, circuit breakers, disconnecting
switches, surge absorbers and other accessories has in-built busbar cabinets housed in its back.
Each generators output terminals are connected to this cubicle with XLPE cable of adequate size.
Components of the cubicles are controlled by various relays housed in the control panels. This
switchgear system works in coordination with the control panels accommodated in the control
room. Suitable ratings for the switchgears have been selected.
Auxiliary Transformer
The station auxiliary transformer, 100 kVA, 11/0.4 kV is of the outdoor type, cast resin, dry type
feeding the station LV Main switchboard. Two station transformers of identical capacity are
located in the powerhouse. These transformers are mechanically/electrically interlocked so that in
case of failure of one of the transformers, the healthier one operates in no time and on the other
hand, this provision makes sure that the two transformers do not operate at the same time.
As aforementioned, the two generator cubicles have a common 6.3 kV bus bar to interconnect
with the transformer units. This common busbar feeds power supply to the station auxiliary
transformer.
L.V System 400 V AC
This comprises an LV Main switchboard and an adequate number of sub-distribution boards. The
LV Main switchboards has two bus sections with incoming feeders from the station auxiliary
transformers and the emergency diesel set.

Backup Diesel sets
There is no provision of back up diesel set so as to minimize the capital cost of the equipments.
DC and UPS systems
The powerhouse DC supply system comprises a 110V installation consisting of a DC Main
switchboard, duplicate battery chargers and a battery. This system also provides supply to the
switchyard.

An uninterrupted power supply system is provided for supplying the computerized control
systems and the relevant peripheral installations.

The UPS system comprises an inverter, a static bypass switch and a distribution panel. The
inverter is fed by the 110V DC system. Capacity of the battery is of 800 Ampere hour.

Cabling
Cabling includes MV and LV power, communication and control cables with all terminations,
fixing and installation materials. All cables are designed to cope with:

short circuit conditions
applied protective system in respect to cross-section and number of cores
a voltage drop of 2% maximum

According to individual requirements, the cables are routed in ducts, conduits, exposed or
embedded, on cable trays or directly buried in the ground.

Lighting and small power installations
Indoor and outdoor lighting systems are installed to provide adequate illumination levels over to
the different services areas.

The lighting installations include normal, emergency and security lighting systems and are fed by
the stations power supply, emergency diesel and 110 V DC systems, respectively.

The small power installation includes 230 V single phase and 400 V three phase socket outlets.

Earthing and lightning protection system
Earthing installations include complete systems for potential gradient control and earthing of all
equipments and facilities in the powerhouse, intake site and switchyard.

The scope comprises copper conductors and earthing rods of individual size, connection and
fixing materials to form a complete, safe and reliable system. All electrical equipments such as
generators, transformers, switchboards, control boards, relay and auxiliary relay boards and all
other subsidiary electrical equipments, which can carry currents in case of earth faults, are
connected to this network. Overall earth resistance of earthing system is maintained below 0.5
ohm.

The powerhouse building, dam control building and other superstructures are guarded by an
appropriate number of lightning masts.

9.6.7 Protection systems
Protection systems are provided to isolate faulty systems as quickly as possible, to limit damage
and to maintain healthy systems in stable operation conditions.

The system features a high degree of selectivity and discrimination between faulty and healthy
circuits.

The protective relays are of high speed, electronic digital type arranged in protection cubicles
including all ancillary devices such as interposing transformers, relays, test facilities and power
supply units.

Protection system is provided for the following plant components:

generating units
unit step-up transformers
transmission line
MV switchgears

9.6.8 Control System
The control systems have a hierarchical organization comprising independent control levels. The
control systems is of decentralized, digital, programmable type featuring programmable logic
control units for each plant component or functional group, a bus system and a station control
room equipped with work stations, event recorder and printers. There wont be the provision of
tele control mechanism for this type of mini system.

local manual control of the individual components and systems
manual and automatic control at group level from the individual

Group control level
At group control level individual or combined group control panels, accommodating the programmable
logic control units (PLCU), process interface, control and measuring devices are provided for the following
functional groups:

generating units (turbine, governor, generator, excitation system with AVR, synchronizing devices,
protection systems, unit aux. systems)
station auxiliary systems (AC, DC, UPS, emergency diesel set, drainage system)
HV switchyard (feeder bays, transformers)
headworks (intake, desanding facilities, spillway)

This control level features manual and automatic control modes.

9.6.9 Communication systems
This comprises the following:
Optical ground wire
Telephone system
Fire alarm system

9.6.10 High Voltage Switchgears
A single transformer, outdoor type switchyard is proposed near the powerhouse to evacuate the
generated power. The switchgear system for this switchyard is equipped with proper ratings of
circuit breakers, current transformers, potential transformers, disconnecting switches with /
without earthing and lightning arresters and synchronous check relay etc. and is suitable for hot,
humid and moderately polluted environment. The switchgear system here works in coordination
with the associated protective relays installed in the control panels accommodated in the control
room and ensures minimum damage to the system and reliable operation of the overall system by
sensing and isolating all faults rapidly.

Moreover, the 11 kV and the busbar are guarded by the following relays:

Differential relay with auxiliary protection
IDMT over-current protection on the line
Ground fault protection on the line
Busbar over voltage protection
Directional over-current relay

Since, it is a small hydropower project and for the simplicity, a single 11 kV busbar system is
made by which the power from other hydropower project, which will be made in future, can be
easily evacuated through the 11 kV transmission line. The power generated will be the sufficient
to the consumers nearby feeding by 11 kV line.

9.7 PROJECT DESCRIPTION AND DESIGN OF MECHANICAL AND
ELECTRICAL COMPONENTS

Powerhouse complex

Surface powerhouse is proposed on the cultivated terrace at the left bank of Telia Khola. The
proposed powerhouse site is near to Khaireni of Telia river. The dimensions of the powerhouse
are almost 14.6X7.9 m. It shall contain two units of Pelton turbines and two units of generators
directly coupled with the turbines having their rated capacity of 625 kVA each. The space of the
powerhouse is designed to well accommodate for the turbines, generators, repair bay, control
room and workshop room. There will be an overhead travelling crane of 12/3 ton capacity in the
powerhouse. Water exiting from the turbines will discharged through the tailrace canal into Telia
Khola.

9.7.1 TRANSMISSION LINE

General Information

Telia Khola Small Hydroelctric Project (TKSHP) is a run-of-river (ROR) scheme and its installed capacity
will be about 990 kW. The aim of the transmission line for the TKSHP, is to evacuate the power generated
by the Project, situated at Terhthum District to the National Grid.
The power evacuation will not get any problem because the generated power will be connected to INPS
with 11 kV Transmission line. Approximately 3km long with almost 60 number of Steel telescopic pole
will connect the powerhouse with existing transmission line at Khairenigaun of Hammarjun
VDC.The conductor will be AVSR, 100mm
2
, trade name DOG .

Transmission line route selection Criteria:

Following criteria are considered during the selection of the transmission line route:-
The route should be as short as possible.
The route alignment should be as close as possible from any existing or
proposed road.
The number of angle towers should be less.
Forest areas should be avoided as much as possible.
Civil and defence installation area, industrial areas, airports, religious
places, public and private premises etc. should be avoided as far as possible.
The line should have minimum high way and road crossings.
Difficult and unsafe approaches should be avoided.

Selection of Alignment
After the field visit considering all the above criteria and calculating the voltage drop and power
loss it is recommended to have a 11 kV Single circuit Transmission Line from TKSHP to
khairenigau so that to meet the existing 11 kV transmission line nearby. The same line will be
used as the line for the construction power to the project.
9.7.2 Transmission Line Requirements
As mentioned above a 11 kV line bay will be constructed in the switchyard. The conductor will
be ACSR dog. The tower will be steel telescopic pole with the height of 9 m.
Justification of the choice of voltage:
Taking into consideration an installed capacity of 34.9 kW and 20 Km line length, the
transmission voltage for 3 - phase a. c. system as per American empirical formula is
calculated as:

V = 5.5 (L / 1.6 + 3P / 150)1/2 V = Line voltage in kV
P = Maximum kW per phase to be delivered to
Single circuit
L = Line length

= 5.5 (3 / 1.6 + 990 / 150)
1/2

= 5.5 (1.875 + 6.6)
1/2

= 5.5 (8.475)
1/2

= 5.5 * 2.9
= 16.01 kV

The standard voltage nearest to this value is 11 KV for single circuit. 33 kV is not
applicable with the site condition and.

9.7.3 11 kV Switchyard/ Interconnection point Arrangement

For economic reason, a conventional single bus system supported by lattice steel structure with
ball and socket type suspension insulators will be selected.

There will be one (1) 11 kV Vaccum circuit breaker for each of the main transformer. Two (2)
disconnecting switches will be installed, one (1) on both sides of circuit breakers in the line bay.
One (1) disconnecting switch will be installed on the income from main transformer circuit
breaker. Instrument transformers and lightning arrestors will be installed in each bay. Line Trap
and other coupling equipment will not applicable for such small projects.

9.7.4 Construction power

The major demand of construction power is for tunnelling, concrete mixing plant, pipe rolling, installation
and welding in position as well as lighting purpose at construction camp. The details are given below:

Batching Plant = 5kW
Construction Camp = 5kW
Welding = 15kW
Dewatering Pump = 5kW
Power Winch = 15kW
Sub Total = 65kW
Diversity Factor = 0.8
Peak Power Requirement = 100 KW

Two possible methods of obtaining construction power are considered:
Existing 11kV transmission line. This line can be used as a line to evacuate the power then.
Installation of standby diesel plant

The power for construction purposes will be tapped from the existing 11kV transmission line at Khaireni.
A temporary diesel plant with a capacity of 40 kVA will be necessary as a standby source of power supply
to construction sites, especially for the tunnelling works.

10. POWER EVACUATION STUDY

10.1 INTRODUCTION
Telia Khola hydroelectric project is a run of river type project located in Tehrathum district of
Koshi zone in the Eastern Development Region of Nepal. The project will have an installed
capacity of 996 kW and will be generating 5.656 GWh annually.
The main objective of Power Evacuation Study is to formulate different possible power
evacuation schemes to evacuate power from the project to the INPS grid and to identify the most
technically and economically viable scheme.
This is a mini hydro project. The project is considered to be developed with the participation of
local developers.
10.1.1 Existing or Under Construction Substations around the Project Area
In order to carry out the power evacuation study of the project, it is necessary to review the
generation, transmission and distribution systems around the project area. The major existing
substations around the project area are described hereunder in brief:
DHANKUTA SUBSTATION
33 kV switchyard
33 kV lines from Tirtire substation, 33 line from Dharan and some small projects are connected in
this switchyard The length of Dhankutta S/S from proposed powerhouse of Telia Khola power
project is about 25 kM.
11 kV switchyard
At the substation, 33 kV voltage level has been stepped down to 11 kV voltage level with 33/11
kV, 5 MVA transformer.
From 11 indoor bus, 11 kV feeders are taken out to supply electricity to the customers.
TIRTIRE SUBSTATION
33 kV switchyard
33 kV bus bar of Tirtire substation connects 33 kV incoming line from Piluwa project (3 MW),
Lower Piluwa Project (1MW) and Hewa khola project (4.5MW coming soon). The bay is already
packed. The distance of Tirtire Sub station is approximately 30 km.
11 kV switchyard
At the substation, 33 kV voltage level has been stepped down to 11 kV voltage level with 33/11
kV for local distribution with 5 MVA transformers.
JIRI KHIMTI SUBSTATION
33 kV switchyard
33 kV sigle circuit line from Basantapur to Jiri-khimti sub station is used to supply the power to
the local users of northern part of Dhankutta and Terhthum district. The approximately distance is
about 30 km from proposed powerhouse.

BASANTAPUR SWITCHING STATION
Basantapur consists 33 kV switching station which connects the three side via Basantapur-Tirtire,
Basantapur-Jiri khimri and Basantapur-Dhankuta 33 kV line. Also the station consists 3 MVA
distribution transformer of 33/11 kV. One of feeder from Basantapur emanates to the Khaireni
which is near to the proposed powerhouse. The distance of Basantapur is about 15 kM.

10.1.2 Selection of Voltage Level and Conductor Size
The selection of voltage levels for evacuating power frrom the project is mainly based on the
existing voltage levels around the project area. Existing voltage levels around the project area
are 33 kV and 11 kV. Option of evacuating 990 kW power from the project with 33 kV
transmission line and above size has been omitted because it requires costruction of long line
and investment cost requirement will be very heavy and will not be feasibe for such a small
sized project. Similarly, evacuation at 11 kV voltage level has t been conssidred to be positive.
Therefore, for the evacuation of power from the project, 11 kV and 33 kV options are treated in
detail and technically and economically viable scheme will be selected.
The conductors commonly used in Nepal for 33 kV and 11 kV voltage levels are ACSR Dog (100
mm
2
) .

10.1.3 Spread Sheet Calculation for Conductor Selection and Voltage
Basic Formula
The selection of transmission lines for the planned power plants in Nepal are based on economic
evaluation of different line/ tower solutions over the lifetime of the project. The optimization takes
into account of investment cost, cost of transmission losses and operation and maintenance costs.

The calculation is performed on a per km transmission line basis and is not dependent on the
length of transmission line. The following formulas apply to the calculation:

K
total
= K
Investment
+ K
Losses
+ K
O&M
[kUSD / km]
K
Losses
=
Rated
peak
U
P
2
. R. T
Loss
. k
E
. D [kUSD / km]
K
O&M
= K
Investment
.
100
&M O
C
. D [kUSD / km]
Where,
P
peak
= Maximum Transmitted Power (MW)
U
Rated
= Rated AC line voltage [kV]
R = AC line resistenace [ / km]
T
Loss
= Loss Duration [hours]
k
E
= Energy Cost [USc / kWh]
D = Discount Factor
C
O&M
= Annual Opeartion & Maintenance cost [% of initial investment]

AC resistance values
The AC resistance in a line is dependent on temperature and thus on loading. The line from
Telia powerhouse to Panchkhal or Banepa or Manthali substation is located in Hilly area. In this
this area, the ambient temperature may approach to 35C. With high power transfer, the
conductor temperature will be high. For economic optimisation, it is preferred to use
conservative resistance values, i.e. resistance at maximum or close to maximum operating
temperature. In this optimisation it has been selected an operating temperature of 65C. For the
conductors used in this study, the following AC resistances then apply:
ACSR Dog (100 mm
2
) : 0.3349 /km at 75C
ACSR Wolf (150 mm
2
) : 0.2187 /km at 75C
Plant Loss Duration
The equivalent loss duration is calculated from the plant factor. The equivalent loss duration
means the time the plant will have to be operated on rated capacity in order to produce the annual
losses and is calculated from:
T
Loss
=
8760
2
n Utilizatio
T
.
+
2
2
2
8760
1
2
1
1
n Utilizatio
T
[Hours]

The proposed plant has installed capacity of 990 kW and can generate annual energy 5.67 GWh
energy annually, thus giving a plant factor of 69 %. With this plant factor, the Plant Loss Duration
amounts to be 2715 hours.
Energy Cost
The energy cost normally to be used for optimisation of transmission lines is the long run
marginal cost of generation. In Nepal, it has been agreed that an average incremental cost of
generation better reflects the real value and is therefore used. The average incremental cost of
generation is:
Average Incremental Cost of Energy : 3.25 USc/kWh
Average Incremental Cost of Capacity : 121 USD/kW/year
Average Incremental Cost, total : 6.02 USc/kWh
Only the total AIC will be used in the optimisation of transmission lines (as recommended in
Transmission System Master Plan Report 1998).

Operation and Maintenance
The operation and maintenance cost of transmission line has been taken as 1.5 % of initial
investment cost.
Discount Factor
The discount factor represents the discounted value of fixed annual payments of one unit each
year of the lifetime. With 25 years technical lifetime and 10 % discount rate, the discount factor is
9.08.

From above graph, to evacuate power from the project with 3.6 MW capacity and 68.93 % plant
factor, single circuit 33 kV line with ACSR Dog conductor seems to be optimum. The second
optimum option is 33 kV DC with ACSR Dog, followed by 66 kV SC with ACSR Dog
conductor.

10.1.4 Power Evacuation Schemes
General:
With above guidelines and the transmission line network around the project area, a total of eight
alternative schemes have been identified which are explained in the following paragraphs in
detail.

Alternative Evacuation Schemes:
To evacuate power from the project, following four alternative schemes have been developed. The
detail of need and the cost is summarized as per below:

Table 10.1 : Alternative Power Evacuation Scheme: Teliya Khola SHP , Dhankuta (996 kW)
S.N.
Scheme Length
(kM)
Cost (MUS$)
Estimated
Capital
Cost Annuity O&M
Annual
Lost
Total
Annual
(A)
1
33 kV S/C ACSR Dog
conductor from powerhouse
to Tirtire substation and
connection at 33 kV bus bar
needs PH switchyard and
Interconnection Scheme at
Tirtire
30 84 9.2541 1.2600 0.0036 10.5177
2
33 kV S/C ACSR Dog
to Dhankuta substation and
connection at 33kV bus
bar needs PH Switchyard
and IP facility at Dhankuta
25 75 8.2626 1.1250 0.0030 9.3906
3
33 kV S/C ACSR Dog
to Basantapur Switching
Station and connection
at 33 kV bus bar needs PH
Switchyard and IP facility at
Basantapur
15 57 6.2796 0.8550 0.0018 7.1364
4
Synchronizing the System at
11 kV at Powerhouse and
making Interconnection
Facilities needs PH
Switchyard with
Interconnection "T" Facility.
3 18 1.9830 0.2700 0.0161 2.2692

*Loss calculation is depicted in Annexure

10.1.5 Economic Analysis, Comparative Study for selected options
Based on mainly technical criteria and to some extent other subjective judgments as discussed
above, four alternatives for the Power evacuation have been formulated. To choose the best
alternative among the different alternatives, economic analysis has been carried out for above
mentioned possible four alternatives.

The economic analysis is carried out by the usual discounted cash flow technique. The tool
applied is the Present Value method. An alternative with the Least Cost in the present value is
obviously the best alternative.


The actual results found for different schemes are summarized below:

A) Comparison with Capitalized cost (MUS$)
The comparison seems like below:

Fig 10.1 : Capital Cost versus different Schemes

B) Comparison with Annual Loss cost (MUS$ per year)

Fig 10.2 : Annual loss versus different Schemes


C) Total Annuity (MUS$)


Fig 10.3 : Total Annuity versus different Schemes

From Table above, it can be seen that the least cost option to evacuate power from the project is
Scheme 4 (i.e. through construction of 3 km long 11 kV single circuit transmission line with
ACSR Dog conductor from Power House to Khaireni and making facility of interconnection on
the powerhouse with 11 kV. The scheme is best suited to NEA itself. The proposed line is the tail
of the 11 kV line. Feeding with a source of almost 1 MW with 11 kV line will be best for the NEA
as well. It will help to make the regulation of the area better as well.

10.1.6 7.0 Conclusion and Recommendation
Owing to investment cost and capitalized cost, Option 4 is recommended for power evacuation.

11. ENERGY AND PROJECT REVENUE

11.1 GENERAL

In Nepal , at present, there is great imbalance between energy supply and demand. Even in
monsoon, the supply of electricity is limited and load shedding is imposed due to supply
constraints. And this situation will prevail for coming several years. Therefore, the installed
capacity of this station has been optimized so as to make the most of generation during monsoon
and thus increase the economic profit of the station. So from the optimization study, this project
has been designed with installed capacity of 996 kW; and the energy generation and the project
revenue has been calculated accordingly.

11.2 POWER GENERATION

Teliya Khola Small Hydropower Project is a runoff type of project. Its installed capacity is 996
kW. Due to wide variation in the flow in the wet and dry period the power produced in the dry
period is less. The least power generated by the plant is only 183 kW in April. The project will be
generating the power in its full capacity for 40% flow exceedence. Rest of the time of the year it
will be operating below its capacity. The efficiency is kept constant and head loss is assumed to
be variable for different flow conditions. The monthly average power generation is 679 kW as
shown in the Fig 11.1.
Power Generation (kW)
0
200
400
600
800
1000
1200
1 2 3 4 5 6 7 8 9 10 11 12
Time in Month
P
o
w
e
r

(
k
W
)
Act ual
Power (kW)
Inst alled Capacit y (kW)
Average Power(kW)

Fig 11.1 Monthly variation of power generated

11.3 ENERGY GENERATION

The power generated is converted to the energy by multiplying the power by the time period for
which it is generated. The wet and dry energy are calculated separately. Saleable energy is
obtained by deducting the 10% losses. Thus the saleable dry and wet energy obtained are 1.020
GWh and 4.338 GWh respectively. The power and the energy generation by the Teliya Khola
Small Hydropower Project are shown in table 11.1.
Table 11.1: Power and Energy generated
M
o
n
t
h
s

R
i
v
e
r

D
i
s
c
h
a
r
g
e

(
m
3
/
s
)

D
e
s
i
g
n

D
i
s
c
h
a
r
g
e

(
m
3
/
s
)

D
a
y
s

N
e
t

H
e
a
d

(
m
)

C
o
m
b
i
n
e
d

E
f
f
i
c
i
e
n
c
y

P
o
w
e
r

(
k
W
)

N
e
t

E
n
e
r
g
y

w
i
t
h

1
0
%

o
u
t
a
g
e

(
k
W
h
)

R
a
t
e

N
R
s
.

/
K
W
h

A
m
o
u
n
t

N
R
s
.

Jan 0.450 0.432 31 138.94 0.860 507 339303 7.000 2375123
Feb 0.326 0.309 29 138.94 0.860 362 226904 7.000 1588331
Mar 0.240 0.222 31 138.94 0.860 260 174419 7.000 1220933
Apr 0.174 0.156 30 138.94 0.860 183 118685 5.500 652769
May 0.380 0.363 31 138.94 0.860 425 284794 4.000 1139178
June 0.651 0.634 30 138.94 0.860 743 481331 4.000 1925323
July 1.196 0.850 31 138.94 0.860 996 667135 4.000 2668540
Aug 4.735 0.850 30 138.94 0.860 996 645615 4.000 2582458
Sep 3.630 0.850 31 138.94 0.860 996 667135 4.000 2668540
Oct 1.196 0.850 30 138.94 0.860 996 645615 4.000 2582458
Nov 0.868 0.850 31 138.94 0.860 996 667135 4.000 2668540
Dec 0.597 0.580 30 138.94 0.860 680 440452 5.500 2422486
Total 365 5,358,523 24494680
Average Rate 678.5 4.571
Annual Revenue 24494680
Energy (GWh)
Installed
Capacity: 0.996 MW Dry 1.020
Plant Factor 0.6140 Wet 4.338
Total 5.359

11.4 REVENUE
The rate for the power produced by the private developers is fixed by NEA at NRs. 7.00 for the
dry months (mid Dec to mid April) and the tariff of wet months is NRs. 4.00. A price escalation of
3% for 9 years is provided in the above tariff. These rates are used to calculate the revenue
generated by the project.

The presentation of monthly revenue generation is given in the Fig below.
Revenue Generation
0
.
0
0
1
0
0
0
.
0
0
2
0
0
0
.
0
0
3
0
0
0
.
0
0
1 2 3 4 5 6 7 8 9 10 11 12
Revenue (Rs.)
T
i
m
e

i
n

M
o
n
t
h
Mont hly
Revenue
(NRs.x1000
Average
Mont hly
Revenue (NRs. x
1000

Fig 11.2: Monthly and average revenue generation

On seeing the monthly revenue generation graph the revenue generation per month it is seen that
the July, August and October are the months generating highest revenues, whereas April is the
month generating the least revenue (Fig 11.2). The total annual revenue is NRs. 2,44,94,680.00.

12. CONSTRUCTION PLANNING

12.1 GENERAL

This section of the report describes the anticipated construction technology applied for various
works and presents the schedule for the completion of the project in time. Timeline Gantt charts
have been prepared for the major construction activities. Critical activities have been identified
and milestone dates predicted.
12.2 ACCESS AND INFRASTRUCTURE
The project site can be reached after about one hour walking distance from the neaurest roadhead
in Teliya. All weather road is available upto Jorpati and earthen road reaches in Teliya and is
extended in eastern side of Chulachuli. Hence, no significant expenses may be required for the
construction of access road and the construction resources and materials can be easily transported
to project site. Existing 11 kV line passes about 3 kM away from powerhouse area and its distance
upto district headquarter is about 25 kM and the location of proposed substation, is about 3 kM
from proposed powerhouse.
12.3 ACTIVITIES ON THE CRITICAL PATH

The critical sequence of major construction activities following award of the main civil
contract leading to commissioning of the first unit are summarized as follows:
Construction of headrace canal
Installation of Generating equipements
The length of penstock length is relatively shorter and hence does not lie in critical path.

12.4 CONSTRUCTION MATERIALS

The construction materials required for the project will be procured from the domestic
producers/suppliers. The main construction materials required are as follows:
Blasting materials and detonators
Cement
Reinforcement bars and timber
Fuels
Coarse and fine aggregates and cohesive materials will be produced from the rocks
obtained from the quarries.
Some coarse aggregates will also be processed from the excavated materials.
The materials for backfill and rockfill will be processed from the excavated materials.

12.5 DISPOSAL OF EXCAVATED MATERIALS
The excavated foundation materials will be dumped and deposited in landfills. The excavated
materials will be transported to the land fills. For enhancing the environment of the area the
landfill will be planted with grass, shrubs and trees.
12.6 CONTRACT PACKAGE

The contract package will be prepared separately fro civil and electro-mechanical works. For
civil works the whole works can be carried out by single contractor. The electromechanical
works could be divided into sub works. Electro-mechanical works will be divided in to
following sub groups:
Supply and installation of turbine and generator
Supply and installation of hydro mechanical equipment like gates, hoists, valves,
penstock, crane etc.
Supply and installation of 11 kV substation, switchgear and transmission line.
12.7 CONSTRUCTION POWER

Alternatives for supply of construction power during construction of the Teliya Khola Small
Hydropower Project are:
Pre-building of 11 kV transmission line from existing line to powerhouse site. This
will require installation of 11 kV switchyard and 11/0.4 kV, 3 phase step-down
transformer at the construction site and its length is about 3 kM. In this case, 11 kV
substation can be made near powerhouse area.
Diesel generator on site. Depending on the load it will be necessary to install diesel
generator unit and LV distribution board for power distribution to the different load
centres around the construction site. Although the unit installation time is shorter,
the overall cost for operation and maintenance are high. Due to problems related to
fuel supply, transport, handling, this solution is not considered to be the best option.
For the construction site essential loads, a back-up emergency diesel generator unit is
recommended. This emergency diesel set would be provided by the general contractor.

12.8 CONSTRUCTION SCHEDULE

The details of the construction schedule are presented in Annex B. The planning shows the two
years construction period from detail design stage to demobilization of the field workers and
equipment.

13. COST ESTIMATES

13.1 INTRODUCTION

This Cost Estimation Report, describes the methodology used, and presents the project cost
estimate. The project cost estimate is carried out as per the basic norms of the Government of
Nepal for civil construction works and market price for electro mechanical items.

13.2 CRITERIA, ASSUMPTIONS AND COMPONENTS

The following criteria and assumptions are the basis of the cost estimate:
All costs are in September 2010 price level.
For currency conversion, the following rate, valid in September 2010 is used: $1 =
NRs.75.00
Identifiable Nepalese taxes and custom duties are included.
Royalties and cost associated with rights of way for quarries, borrow and disposal areas are
not included.
A key assumption is that the project management and procurement policy will stress open
competitive bidding and that government policies will not hinder cost-effective construction.
13.3 ESTIMATING METHODOLOGY

The major component breakdowns for the estimating process are:
support facilities, access roads and other general items
main civil construction works
electromechanical equipment
transmission facilities including substation
camp and housing accommodation facilities
engineering, management, and administration
miscellaneous expenses

13.4 ESTIMATING METHODOLOGY

The cost estimate is prepared on the basis of the sequential execution of the following steps:
Subdivision of the total project into a number of distinct structures (Headworks, diversion
structures, intake, headrace canal including high pressure penstock, powerhouse, tailrace etc.).
Breaking down of structures into a number of distinct construction tasks. These are
overburden excavations, rock excavation, fill work, concrete works, etc.
Calculation of the quantities of each items according to the above mentioned tasks for the two
units of cumulative 996 kW installed capacity are considered. Details estimations of quantities are
made in 1:1000 scale maps.
Unit rates had been adopted from comparing the number of project studied by Nepal
Electricity Authority as well as private developers.
The summation with allowances for, contingency and allowances for engineering and
management and provision for camp facilities gives the total project cost.
Table 13.1:Unit Rate: Unit rates for the estimation of the cost are as follows:
S.No. Description Unit Rate (NRs.) Remarks
A Labour Rate
1 Skilled Labour man day 300.00 8 hrs/day
2 Unskilled Labour man day 175.00
3 Blaster man day 400.00

B Material Rate
1 Cement Bag 700.00
Rs. 2 per kg
transportation cost
2 Sand Cum 400.00
3 Aggregates Cum 500.00
4 Stone Cum 300.00
5 Riverbed gravel Cum 300.00
6 Sal wood Cum 10,000.00
7 Low quality wood Cum 7,063.97
8 CGI sheet Bundle 400.00
9 Reinforcement bar Kg 72.00
Rs. 2 per kg
transportation cost
10 Binding wire Kg 80.00
11 Gabion wire Kg

75.00
12 Salvage wire Kg

75.00
13 Nail Kg 90.00
14 Filling materials Cum 450.00
15 Mud Cum 150.00
16 Plywood m
2
400.00

The total estimated cost for civil works including penstock pipe, trashrack, intake gate, trashrack
at forebay, sluice gate etc. is NRs. 6,66,05,190.00 equivalent to US$ 8,88,069.00.

13.5 ELECTRO MECHANICAL EQUIPMENTS
The two numbers of 498 kW unit capacities are installed to generate 996 kW of power. The cost
of supply and installation of Turbines, generators,substation, Inlet valve and other auxiliary
equipments, are NRs. 4,09,02,500.00 equivalent to US$ 5,45,367.00.
13.6 TRANSMISSION LINE AND SWITCHYARD
The total length of the transmission lines is estimated from the available maps. Considering the
installed capacities of the plant, the necessary power evacuation line is designed and estimated as
per the capacities of the transmission lines. Estimated length of transmission line is 3 km upto
existing 11 kV line in Parewadin VDC. The total cost of transmission line is estimated to be NRs.
45,00,000.00 equivalent to US$ 60,000.00.
13.7 SITE FACILITIES, ACCESS ROAD AND ENVIRONMENTAL PROVISIONS
Total estimate cost for site facilities , access road and environmental provisions is NRs. 1,14,42,500.00.
which is equivalent to US$ 1,52,566.00.
13.8 OTHERS
The cost for engineering, management , administration and miscellaneous work during
construction is provided on lump sum basis. The total cost for this is NRs. 3,67,88,160.00
which is equivalent to US$ 4,90,509.00.

13.9 PROJECT COST
The summary of the project cost is presented in the table below. More details are provided in
the annex.
Table 13.2 : Summary of Project Cost
SN ITEM DESCRIPTION
Table
No.
Amount
NRs. X 1000
Sub-Total NRs.
X 1000
1 CIVIL WORKS 66605.19
1.1 Headworks 1.1

22,721.784
1.2 Desilting Basin 1.2

1,203.860
1.3 Headrace Power Canal 1.3

25,347.600
1.4 RCC Crossing 1.4

983.401
1.5 Forebay Basin 1.5

3,331.980
1.6 Anchor Block, Support Pier and Penstock 1.6

7,681.735
1.7 Powerhouuse and Tailrace 1.7

5,334.826
2 ELECTRO-MECHANICAL EQUIPMENT 40902.50
2.1 Power house equipment plus 11 kV Substation Cost 1.8

40,902.500
3 TRANSMISSION LINE 4500.00
3.1 11 kV line erection 1.9

4,500.000
4 ROAD AND SITE FACILITIES 8797.50
4.1 Project /or Access Road 1.10

5,520.000
4.2 Site Facilities with Operators' Village 1.11

3,277.500
5 ENVIRONMENTAL COSTS 2645.00
5.1 Environmental costs and compensation 1.12

2,645.000
Sub-total 123450.19
6
ENGINEERING & ADMINISTRATION
COSTS
6.1
Detailed Design, construction management, and
administration cost 8%

9,876.015 9876.01

7 MISCELLANEOUS COST 10%

12,345.019 12345.02
145671.22
8 INTEREST DURING CONSTRUCTION
8.1 Interest During Construction

14,567.122
50% of total
project cost for
2 year -10%
interest rate
TOTAL ESTIMATED COST (NRs)

160,238
Cost per kW ( 1 US$ = NRs. 75.00)

2,145.00
14. FINANCIAL ANALYSIS

14.1 INTRODUCTION
This section of the report describes the financial analysis carried out in order to determine
viability of the project in terms of expected returns. Financial evaluation uses the real term
monetary values of the cost and benefits and is inclusive of taxes, transfers, duties and escalation.
The financial evaluation concerns only with the developer of the project and monetary evaluation
of the project. Hence, from the perspective of a private developer, financial evaluation is the most
important aspect of the project to determine whether to finance it or not.
14.2 CRITERIA AND ASSUMPTIONS
The evaluation method is based on conventional practice of developing the cost and the benefit
streams for a period of time on the same basis. The financial evaluation procedure involves a
number of assumptions. These parameters are described in the following paragraphs.
14.2.1 Project Financial Cost
The project capital cost derived in the previous chapter-Cost Estimate, has been taken as the
project financial cost with modification of electro-mechanical cost to reflect national policies of
taxation.
14.2.2 Project Financial Benefits
Financial evaluation requires use of energy selling prices in real terms, that is, the price the
developer gets in the market. It is generally governed by the Power Purchase Agreement (PPA)
between the Developer and the power distribution agency and is quite often negotiable after the
feasibility study. For the feasibility study purpose, current prevailing rates should be used.
These energy prices are divided into wet season energy and dry season energy. For projects below
5 MW, NEA has published a rate of wet season energy as Rs. 4.00 /kWh and dry season energy as
Rs. 7.00/kWh. Price escalation of 3% on first year cost is made for 9 years.
14.2.3 Discount Rate
The discount rate is also an important parameter in the financial evaluation. The reference
discount rate of capital selected for the study is 10%.
14.2.4 Cost Datum
All cost and benefits are expressed in constant prices (i.e., excluding general escalation)
14.2.5 Planning Horizon
The financial life of the project has been taken as 50 years. This period is expected to be long
enough to fully include all benefits from the project and also equals or exceeds the expected
economic life of the facilities. Replacement of electrical and mechanical components is
considered after 25 years of operation. Costs and benefits may occur after the planning horizon,
however, their inclusion will have little effect on the evaluation results because of the discounting
procedures employed in the analysis.
14.2.6 Currency Exchange Rate
The exchange rate used in the economic analysis is NRs 75.00 per US dollar (September 2010).
This rate has been used as the official exchange rate in the conversion of all costs to and from
the US dollars to the Nepalese Rupees. Exchange rate for subsequent years has been derived
based on the local and foreign escalation.
14.2.7 Operation and Maintenance Cost
It has been assumed that 1.5% of the project cost will be required annually to meet operation and
maintenance cost including repair and replacement costs. This value has been derived from the
experience of hydropower projects in the country.
14.2.8 Taxes, Duties and VAT
Taxes, duties and VAT payable to the government or its agencies have to be considered in the
financial evaluation. At present, the government is planning for VAT exemption for small
hydropower project and hence this cost is not included in the total project cost.
14.2.9 Royalties
Royalties are payable to the government for natural resource usage. As per Electricity Regulation
1992, the following royalties are levied:
For the first fifteen years: Capacity royalty NRs 100 per kW of the installed capacity per year and
energy royalty 2% of energy sales revenue for project above 1 MW. Since, this scheme has
installed capacity of 996 kW only, such royalty will not apply here.
14.2.10 Debt Equity
As hydropower projects are highly capital intensive, funds has to be obtained from various
financial institutions. Such a project could not be built solely on loans as the lenders will require
the developer also put some funds. Generally, loan portion of the cost varies from 70 to 85%. For
the present study, debt-equity ratio of 75:25 has been assumed.
14.2.11 Interest Rate
The loan amount will require some interest to be paid on the amount borrowed. The interest will
be capitalized till the project starts producing revenue. Generally, the banks charge 8 to 18% for
such loans. For the present study, an interest rate of 10% has been considered.
14.2.12 Loan repayment Period
The repayment starts after the revenue generation starts. The repayment of the loan will be made
within 10 years. The loan repayment schedule is given in table 14.1.
Table 14.1 Loan Repayment Schedule
S.
No.
Debt Service Schedule
Year (Amount in million Rupees)
0.00 1.00 2.00 3.00 4.00 5.00
1 Annuity payment (Rs) 19.56 19.56 19.56 19.56 19.56
2 Principal payment(Rs) 7.54 8.29 9.12 10.04 11.04
3 Interest payment at 10% (Rs) 12.02 11.26 10.43 9.52 8.52
4 Principal remaining (Rs) 120.18 112.64 104.34 95.22 85.18 74.14
Year
5.00 6.00 7.00 8.00 9.00 10.00
1 Annuity payment (Rs) 19.56 19.56 19.56 19.56 19.56
2 Principal payment(Rs) 12.14 13.36 14.69 16.16 17.78
3 Interest payment at 10% (Rs) 7.41 6.20 4.86 3.39 1.78
4 Principal remaining (Rs) 74.14 62.00 48.64 33.94 17.78 0.00
In addition, the banks may charge guarantee money for the loan provided, insurance charges,
registration charges, if any, to be levied from the project. These charges are bank specific and are
unknown at this stage. Hence, such charges have not been considered in the study.
14.2.13 Financing Structure
The total capital expenditure is expected to amount approximately NRs 160.238 million rupees,
and will be financed by a combination of equity and debt as follows. The debt is a local currency
commercial bank loan. The financing structure of 75% debt and 25% equity (of the capital
investment excluding the financing fees and IDC) are assumed.
Table 14.2 : Source of Financing
Mode of Financing Percentage Sources NRs, Crore
Shareholders Equity 25 Equity 4.00
Bank Loan 75 Loan 12.20
Total 100 Total 16.02

14.3 SENSITIVITY ANALYSIS
Sensitivity analysis of this scheme is made in the following variable for following variations as
shown in the table below.

Table 14.3 Financial Parameters for different scenarios
NPV in Million Rupees.
Increments Project Cost Discount Rate
Annual
Revenue Project Life
-0.20 86.18 95.61 12.03 41.86
-0.10 70.47 73.57 33.40 47.77
0.00 54.76 54.76 54.76 54.76
0.10 39.06 39.06 76.13 58.43
0.20 23.35 24.79 97.50 62.78

Variation of IRR
Annual
-0.20 17.97% 14.26% 10.99% 13.67%
-0.10 15.95% 14.26% 12.67% 13.97%
0.00 14.26% 14.26% 14.26% 14.26%
0.10 12.82% 14.26% 15.79% 14.39%
0.20 11.58% 14.26% 17.27% 14.53%

Variation of BC Ratio
Annual
-0.20 1.69 1.58 1.08 1.27
-0.10 1.50 1.46 1.21 1.31
0.00 1.35 1.35 1.35 1.35
0.10 1.23 1.25 1.48 1.37
0.20 1.12 1.16 1.62 1.40

The above analysis shows that project will be in loss only when there is 20% dropdown in annual
revenue assuming all other variables constant. This scenario is also presented in the Figs below.

Variation of NPV
0.00
20.00
40.00
60.00
80.00
100.00
120.00
Increments -0.20 -0.10 0.00 0.10
Increments
N
P
V

i
n

M
i
l
l
i
o
n

R
s
.
Project Cost
Discount Rate
Annual Revenue
Project Life
Fig 14.1 : Variation of Net Present Value for different alternatives

Variation of IRR
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Increments -0.20 -0.10 0.00 0.10
Increments
%

I
R
R
Project Cost
Discount Rate
Annual Revenue
Project Life

Fig 14.2 : Variation of Internal Rate of Return for different alternatives

Variation in BC Ratio
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
Increments -0.20 -0.10 0.00 0.10
Increment
B
C

R
a
t
i
oProject Cost
Discount Rate
Annual Revenue
Project Life

Fig 14.3 : Variation of Internal Rate of Return for different alternatives

The sensitivity analysis shows that for the selected options for the variation of project cost, project
revenue, discount rate and project life; the project is infeasible only when there is 20% drop in
revenue. In all other cases, the financial indicators are at acceptable level.

14.4 CONCLUSION AND RECOMMENDATION
Hence, the above analysis shows the project is feasible.

CONCLUSION AND RECOMMENDATIOIN

14.5 CONCLUSION
Teliya Khola Small Hydropower Project has been studied to the feasibility level; this report
supplements the details regarding to feasibility study. After detailed field investigations like
topographical mapping, field visit, site observation and hydrological data collection, design and
layout works were carried out with its project cost estimation. Financial evaluations were also
carried out to determine the viability of the project.
The conclusions drawn are as following.
The waterway alignment is very simple and geologically stable.
It requires only 3 kM of access road.
Adverse environmental impacts are minimal.
The Project concept is simple, involving a small weir, contour canal/ penstock
and surface power station;
The Project cost is reasonable with an attractive rate of return based on the tariff
on which NEA is purchasing power from private power developers;
The project has a , NPV of NRs.44.76 million rupees , B/C ratio of 1.35, FIRR of 14.26 % with
net energy sale of 5.36 GWh, which shows that the project is attractive.

14.6 RECOMMENDATION
14.2.1 GENERAL

The Feasibility Study Stage of the project was performed due to the promising and attractive
technical and financial parameters that have evolved during the design and analyses in the current
Study. So, it is recommended that this Project be further studied and investigated for
implementation.

14.2.2 DETAILED DESIGN

The following studies should be done prior to the construction phase to find the in depth details.
The detailed design would lead to the preparation of the tender documents for various aspects of
the Project since the details provided in this section might still need some detailed study on some
of the issues as:
Detailed topographical survey for waterways and transmission line
Geological and geotechnical investigation for major structure locations
Review of hydrological investigations
Hydraulic, Structural and Hydro and Electro-mechanical Designs including transmission
line.
Detailed study of 11 kV substation versus 33 kV substation.
Preparation of Land Acquisition Plan.
Preparation of separate tender document for civil/hydraulic steel structures;
electromechanical equipment supply, erection and commissioning and Transmission line.

LIST OF REFERENCE

1. Feasibility Study Report of Barjugad Mini Hydropower Project, Kuldeumandu VDC,
Bajura, January 2008.

2. Feasibility Study Report of Sunkoshi Small Hydropower Project, Samina Hydropower (P) Ltd.,
Kathmandu, April, 1999.

3. Small Hydropower Master Plan Nepal, Main Report Phase I and II, Small Hydropower
Department, Nepal Electricity Authority, GTZ, Nepal German Technical Assistance,
Kathamdnu, August, 1993.

4. Glacier Lakes and Outburst Floods in the Nepal Himalays, Water and Energy Commission
Secretariat, Ministry of Water Resources, Kathamndu, 1993.

5. Nepalese Legal Provisions on Hydropower Development, Compiled by Electricity
Development Centre, Kathmandu, 1996.

6. Environment Protection Regulations 2054, Ministry of Population and Environment,
Government of Nepal, Kathmandu, 1997.

7. Hydropower Development Policy 2049. Ministry of Water Resources, Government of
Nepal, Kathmandu, 2049.

8. Water Resources Act 2049, Ministry of Water Resources, Government of Nepal,
Kathmandu, 2049.

9. Electricity Act 2049, Ministry of Water Resources, Government of Nepal, Kathmandu,
2049.

10. Foreign Investment and Technology Transfer Act 1992, Government of Nepal,
Kathmandu, 1992.

11. Industrial Enterprises Act 1992, Ministry of Industries, Government of Nepal,
Kathmandu, 1992.

12. Water Resources Regulation 2050, Ministry of Water Resources, Government of Nepal,
Kathmandu, 2050.

13. Planning and Implementation of Hydropower Projects, Hydropower Development Series,
Norwegian Institute of Technology, Norwav, 1994.

14. Economic and Financial Analysis of Hydropower Projects, Hydropower Development
Series, Norwegian Institute of Technology, Norway, 1994.

15. Hydropower Engineering, Brown, G., AA Balkema Publications, Rotterdam, 1988.

16. Hydropower Engineering, Nigam, P S, Nem Chand & Bros., India, 1980.

17. Theory and Design of Irrigation Structures. Varshney, R.S., Gupta, S.C. & Gupta, R.L.,
Nem Chand & Bros., India, 1982.

18. Design of Small Dams, US Bureau of Reclamations, 1978.

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