1. Generate 2010: ‘Getting it Done’ Small Hydro Development – Technical Basics 7 November, 2010

2. 11 Small Hydro – Technical Basics  Independent Power Producer (IPP) Development Process –Permitting –Consultation –Design - Costing –Sale of power to BC Hydro –Financial  Characteristics of a Run of River Hydro Project –Hydrology –Physics –Main components: Intake, Penstock, Turbine-Generator, Powerhouse, Sub- station –System control “Hydro 101” Syllabus

3. 2 Click to add text Small Hydro – IPP Development Process Typical IPP Development Sequence

4. 33 Permitting Design/Costing Electricity sales Financing Small Hydro – IPP Development Sequence Process - Simplified Development Phase Construction Operations

5. 4 Click to add text Minister of Aboriginal Relations and Reconciliation Small Hydro – Permitting

6. 5 Click to add text Minister of Aboriginal Relations and Reconciliation Small Hydro – Permitting  First Nations –Partnership and ownership –Benefits agreements and employment  Stakeholders –Local politicians, interest groups (e.g. recreation clubs, contractors, etc.) –Overlapping tenure holders; forestry, mining, water licence holders Consultation – Early and regularly

7. 66 Small Hydro – Design / Costing Design/Costing Progression Pre-feasibility study Feasibility study Detailed design Costs increasing Uncertainty decreasing Hydrology Data Collection

8. 7 Click to add text Minister of Aboriginal Relations and Reconciliation Small Hydro – Electricity Sales  Three different options –Calls for Power Intermittent Larger projects Rules, conditions and terms vary Competitive bid process –Standing Offer Program (SOP) Recently revised - Price $99/MWh - Size limit 10 MW Proposals are accepted anytime –Net Metering Small: <50 kW Electricity sales to BC Hydro

9. 8 Click to add text Minister of Aboriginal Relations and Reconciliation Small Hydro – Pricing Time of Year – Time of Day

10. 9 Click to add text Minister of Aboriginal Relations and Reconciliation Small Hydro – Pro Forma Financing  Financial Model –Revenue and cost projections for 20-40 years –Discounted cash flow to calculate Return on Investment –Hurdle rate is minimum acceptable ROI.  Leveraging –60/40 or 80/20 Debt/Equity –Increase Return on Equity  Debt Coverage Ratio –Varies –Will impact leveraging  Term –Equity goes in first –Full draw down –Construction loan take out

11. 10 Permitting Design/Costing Electricity sales Financing Small Hydro – IPP Development Sequence Penultimate Step Development Phase Construction Operations GO or NO GO

12. 11 Click to add text Minister of Aboriginal Relations and Reconciliation Small Hydro – Overview Main Components

13. 12 Click to add text Small Hydro – Overview Physics  Power (kW) = Flow (m 3 /s) x Head (m) x Efficiency x Gravitational Constant x 9.81 m/s 2 –4 m 3 /s x 275 m x 0.75 x 9.81 m/s 2 = 8,100 kW (8.1 MW)  Energy (kWhr) = Power (kW) x Time (hr)  Plant Factor = Actual Annual Energy / Theoretical Maximum Annual Energy –31,540 MWhr/yr / (8.1 MW x 8,760 hr/yr) = 45%

14. 13 Click to add text Small Hydro – Overview Considerations for hydro site selection  Hydrology –Low elevation with winter flow –Lake in upper watershed  Infrastructure –Existing roads –Close to grid  Location –Not in recreation park or special area –Proximity to town –Geotechnical conditions  Environment –Fish, anadromous and resident –Rare plant or animal species –Other users

15. 14 Click to add text Small Hydro – Overview Hydrology - Watershed

16. 15 Click to add text Small Hydro – Overview Hydrology – Synthetic Flow Record REAL TIME FLOW DATA OVERLAPPING PERIOD WITH LONG TERM FLOW DATA DEVELOPMENT OF RELATIONSHIP FOR CONCURRENT DATA APPLY RELATIONSHIP TO LONG TERM FLOW DATA SYNTHETIC FLOW STRING Average daily flows in m 3 /sec 1 year real time data – minimum 20 year synthetic flow string - minimum

17. 16 Click to add text Small Hydro – Overview Hydrology Power Flow = River Flow – IFR

18. 17 Click to add text Small Hydro – Overview Main Components - Intake  Functions –Direct water into penstock –Allow instream flow release (IFR), surplus water to pass downstream –Allow debris to pass downstream –Allow fish to pass upstream, downstream –Keep air, fish and debris out of penstock  Parts –Weir – sluicegate and spillway –Headpond –Trashrack, intake chamber and bellmouth, gate

19. 18 Click to add text Small Hydro – Overview Main Components – Rubber Dam Intake Rutherford Creek Hydro Project Innergex Renewable Energy Inc.

20. 19 Click to add text Main Components – Coanda Intake Small Hydro – Overview Brandywine Creek Hydro Project Run of River Power

21. 20 Click to add text Main Components – Penstock Small Hydro – Overview  Materials –Low Pressure: HDPE, Steel, Other –High Pressure: Steel  Buried –Safe and unobtrusive –Trenching may be difficult –Drainage  Surface –Requires anchor blocks and pedestals –Creates a barrier –May be easier to install  Highest Cost – Highest risk component of a run of river hydro project Sechelt Creek Hydro Project Regional Power

22. 21 Click to add text Main Components – Turbines Small Hydro – Overview High Head - Low Flow  Pelton Low Head – High Flow  Francis  Kaplan Smaller Units  Turgo  Crossflow

23. 22 Click to add text Main Components – Pelton Turbine Small Hydro – Overview  High Head - Low Flow  Relatively Flat Efficiency Curve  Instantaneous Flow Bypass

24. 23 Click to add text Main Components – Pelton Turbine Small Hydro – Overview

25. 24 Click to add text Main Components – Francis Turbine Small Hydro – Overview  Low Head - High Flow  Peaked efficiency curve  High maximum efficiency  Flow bypass valve required

26. 25 Click to add text Main Components – Francis Turbine Small Hydro – Overview

27. 26 Click to add text Main Components – Powerhouse Small Hydro – Overview  House turbines, generators and ancillary equipment  Control System  Tailrace returns water to river  Good road access required Soo River Hydro Project Summit Power Corp.

28. 27 Main Components – Sub-Station and Transmission Line Small Hydro – Overview  Beside powerhouse  Step-up transformer  Circuit breaker  Transmission line to point of interconnection  Typical Voltages 25 kV, 69 kV, 138 kV Doran-Taylor Project Summit Power Corp.

29. 28 Click to add text Control System Small Hydro – Overview  Highly automated –Remote monitoring and control –Daily site visits  PLC controlled in powerhouse –Inputs/Outputs from intake, turbine, generator, BC Hydro and others –Grid connected no load following  Turbine speed constant  Generator voltage and frequency constant  River flow varies –River flow – IFR = Power flow –As river flow increases, power flow increases to design maximum –Power and energy are dictated by river flow

30. 29 Click to add text Small Hydro – Development Basics Questions?