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Development of Hydropower: A Case Study in

Developing Countries
a
I. Yüksel
a
Sakarya University, Technical Education Faculty, Department of Construction, Sakarya,
Turkey
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 Energy Sources, Part B, 2:113–121, 2007
Copyright © Taylor & Francis Group, LLC
ISSN: 1556-7249 print/1556-7257 online
DOI: 10.1080/15567240600705201

Development of Hydropower: A Case Study in

Developing Countries

I. YÜKSEL
Sakarya University
Technical Education Faculty
Department of Construction
Sakarya, Turkey
Downloaded by [University of Guelph] at 22:21 12 June 2013

Abstract Over the last two decades, global electricity production has more than
doubled, and electricity demand is rising rapidly around the world as economic de-
velopment spreads to emerging economies. Therefore, technical, economic and en-
vironmental benefits of hydroelectric power make it an important contributor to the
future world energy mix, particularly in the developing countries. In addition, small
hydropower (SHP) represents an alternative to fossil fuel generation and does not con-
tribute to either greenhouse gas emissions or other atmospheric pollutants. However,
developing the remaining hydropower potential offers many challenges, and pressures
from some environmental action groups over its impact has tended to increase over
time. Hydropower throughout the world provides 17% of our electricity from an in-
stalled capacity of some 730 GW is currently under construction, making hydropower
by far the most important renewable energy for electrical power production. The
contribution of SHP to the worldwide electrical capcity is more of a similar scale
to the other renewable energy sources (1–2% of total capacity), amounting to about
47 GW (53%) of this capacity in developing countries. This paper is limited to small
hydropower plants in some developing countries such as China, India and Turkey.

Keywords renewable energy, small hydropower, sustainable development

Introduction
Affordable energy services are among the essential ingredients of economic development,
including eradication of extreme poverty as called for in the United Nations Millenium
Development Goal (MDGs). Modern energy services—mainly provided by liquid and
gaseous fuels, as well as electricity—are essential for building enterprises and creating
jobs. Convenient, affordable energy is also important for improving health and education
and for reducing the human labor required to cook and meet other basic needs (UNDP,
2000).
Meeting these essential energy needs economically and sustainably requires a bal-
anced energy portfolio that is suited to the economic, social, and resource conditions
of individual countries and regions. Roughly 1.6 billion people worldwide do not have
access to electricity in their homes, representing slightly more than one quarter of the
world population. The 2.4 billion people who rely on traditional biomass fuels for their

Address correspondence to Dr. Ibrahim Yüksel, Sakarya University, Technical Education Fac-
ulty, Department of Construction, 54187 Sakarya, Turkey. E-mail: yukseli2000@yahoo.com

113
 114 I. Yüksel

energy must collect and burn straw, dung, and scraps of wood to cook their meals. They
often go without refrigeration, radios, and even light. International Energy Agency (IEA)
estimates that if the MDG poverty-reduction target is to be met, modern energy services
will need to be provided to an additional 700 million people by 2015 (IEA, 2003).
Modern renewable energy technologies turn widely available but intermittent re-
sources into usable forms of thermal, chemical, mechanical, and electrical energy. Among
the renewable energy options that are currently in wide use in some regions and are now
ready for large scale introduction in many areas of the developing world (WEC, 2000):
• Biogas for decentralized cooking and electricity,
• Small hydropower (SHP) for local electricity,
• Small wind power for water pumping and local electricity,
• Solar Photovoltaics for local electricity,
• Solar collectors for water and space heating,
• Ethanol and biodiesel for agriculture and transportation,
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• Large hydropower for grid electricity,

• Large wind power for grid electricity,
• Geothermal energy for heat and grid electricity.

Renewable energy projects developed in scores of developing countries—many with

international donor assistance—have demonstrated that renewable energy can contribute
to poverty allevation directly by providing the energy needed for creating business and
jobs, turning locally available resources into productive economic assets.
Approximately 70% of the earth’s surface is covered with water, a resource that has
been exploited for many countries. Hydropower throughout the world provides 17% of
our electricity from an installed capacity of some 730 GW currently under construction,
making hydropower by far the most important renewable energy for electrical power
production. The contribution of small hydropower (SHP) to the worldwide electrical
capcity is more of a similar scale to the other renewable energy sources (1–2% of total
capacity), amounting to about 47 GW (53%) of this capacity is in developing countries.
This paper is limited to SHP plants in some developing countries such as China, India, and
Turkey. The study shows that these developing countries have abundant SHP resources,
which are economically feasible for development.

Definition of Small Hydropower

SHP schemes are mainly “run of the river,” with little or no reservoir impoundement,
using the flow of water within the river’s natural range. Little dams create little ponds,
which is very favorable for ecosystems, fish and water storage. They can be designed
with a small head, generally on small rivers with gentle gradients, or with a high head,
generally on small rivers with steep gradients. Run-of-river projects can use all the river
flow or only a fraction of it and have limited environmental impact. Therefore, SHP is not
simply a smaller version of a large hydropower plant. Specific equipment is necessary to
meet fundamental requirements with regard to simplicity, high energy output, maximum
reliability, and easy maintenance by non-specialists.
There are different definitions of small and large hydropower. The EU definition
classifies as large hydropower schemes as those with over 10 MWe of installed capac-
ity, and small hydropower schemes as those up to 10 MWe of installed capacity. The
definition of SHP schemes also covers micro schemes (those with installed capacity up
 Development of Hydropower in Developing Countries 115

to 1 MWe ). Micro hydropower schemes are more suitable for rural dispersed communi-
ties. In particular, the power generated from micro hydropower schemes can be used for
agro-processing, local lighting, water-pumps, small business and industries, farms, and
household in rural communities.
To develop both small and micro hydropower schemes, the principal technical re-
quirements are (ESHA, 2005):
• Suitable rainfall catchments area,
• Hydraulic head,
• A means of transporting water from the intake to the turbine, such as a pipe or a
millrace,
• A turbine house containing the power generation equipment and valve gear,
• A tailrace to return the water to its natural course.
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The Advantages of Small Hydropower

Small hydropower plants combine the advantages of hydropower with those of decen-
tralized power generation, without the disadvantages of large-scale installations. Small
hydropower is:
• A sustainable resource: It meets the needs of the present without compromising
the ability of future generations to meet their own needs.
• An efficient resource: It can satisfy energy demand with no depletion of the re-
source and with little impact on the environment.
• A secure resource: Small hydropower is available within the borders of one country
and is not subject to disruption by international political events. This guarantees
its security of supply.
• A clean resource: It does not involve a process of combustion, thus avoiding
pollution and greenhouse gas emissions.
• A renewable resource: The fuel for hydropower is water, which is not consumed
in the electricity generation process.
Small hydropower has been technically feasible for decades. Given a favorable site, it can
be economically attractive, sometimes even offering the least cost method of generating
electricity. High head sites tend to be in areas of low population density, and long
transmission distances to the main centers of population can often nullify the low cost
advantages at the hydropower plant. Low head sites are statistically much more common
and tend to be found in or near concentrations of population where there is a demand for
electricity. Small hydropower has the ability to generate electricity instantly and supply
both base and peak load generation, and has a long life, is easy to maintain, and is highly
reliable (ESHA, 2004).

SHP Economics and Costs

In general, large hydroelectric power plants have little difficulty in competing with con-
ventional generation, but small hydropower, especially the very small and the low-head
plants, can normally only compete where allowance are made for the external costs
associated with fossil fuels and nuclear power.
The capital required for small hydropower plants depends on the effective head,
flow rate, geological and geographical features, continuity of water flow, equipment such
 116 I. Yüksel

as turbines and civil engineering works. Making use of existing weirs, dams, storage
reservoirs and ponds can significantly reduce both environmental impact and costs. Sites
with low heads and high flows require a greater capital outlay, as larger civil engineering
works and turbine machinery will be needed to handle the larger flow of water. If,
however, the system can have a dual purpose (such as power generation and flood control,
power generation and irrigation, power generation and drinking water production), the
payback period can be shortened.
Apart from the investment and production costs, the other principal cost element
is operation and maintenance, including repairs and insurance, which can account from
1.5–5% of investment costs. Both the production and investment costs differ considerably
depending on the plant’s head height.

Case Study: SHP in Some Developing Countries

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China
China has abundant SHP resources, which are economically feasible for development. The
developable potential amounts to 100 GW, and it is scattered over more than 1,500 out
of the nearly 2,300 counties in the country. In the country, around 76 million rural people
still have no access to power. Up to the end of 2002, China has established 652 Primary
Rural Electrification Counties. The number of SHP stations operating in the country is
42,221 with an aggregate installed capacity of 28,489 MW, accounting for more than
one quarter of the country’s total developable potential. From the outset, the purpose of
SHP development has been to provide electricity for China’s rural areas. This ongoing
process has witnessed large-scale development with an installed capacity addition of more
than 2,000 MW annually. China has thus created a new record in world hydropower
development, and the country’s SHP practice has attracted international attention (Hicks,
2004).
On the other hand, there is strong focus on expansion of small-scale hydropower
in rural areas. Small hydropower was projected to provide power in 600 rural provinces
by 2001 and 1,400 by 2010. China already invested $1.6 billion to add 1,000 MW of
rural electric capacity each year since 1993 (ESHA, 2005). The Global Environmental
Facility (GEF) and the World Bank have begun a 10 year project to increase China’s non-
conventional renewable energy use by 14.3 GW by 2010. Table 1 shows the progress of
recent SHP development in China. Its rapid development is mainly located in southeastern
and southwestern parts of China. The SHP installed capacity in the 15 provinces (of a
total of 30), accounts for about 91.6% of the total installed capacity in China. As of
2002, SHP installed capacity (in MW) also stood at 33.7 of the installed capacity of
large hydropower (LHP).

India
India has an experiences of over 100 years in setting up small/mini hydropower plants.
The first micro hydropower plant was of 130 kW in West Bengal set up in 1897. Sub-
sequently a number of such power plants were set up throughout the country’s mainly
hilly regions. With the development of technology and increase in electricty demand the
focus was shifted to large hydropower projects. On the other hand, technology for small
hydropower resources development in India is mature and reliable. International and na-
tional efforts during past decades have focused on: (a) the efficiency of the equipment;
 Development of Hydropower in Developing Countries 117

Table 1
Recent SHP development in China

SHP SHP/LHP

Installed Annual MW TWh

Year capacity, MW output, TWh ratio, % ratio, %

1970 1,019.0 — 16.4 —

1975 3,083.2 6.7 23.0 14.1
1980 6,925.5 12.7 34.1 21.9
1985 9,521.0 24.1 36.0 26.1
1990 13,180.0 39.3 36.6 31.1
1995 16,646.1 55.4 32.7 32.6
2000 24,851.7 80.0 31.3 33.8
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2001 26,262.4 87.1 31.7 32.9

2002 28,489.3 94.7 33.7 31.1
Source: Hicks, 2004.

(b) design and use of silt resistive material/coatings; (c) reliable and auto controls; and
(d) remote operation of the units. For isolated units in a small grid or stand alone mode
as well as for grid connected projects, efforts are going on for reducing the costs but
improving the efficiency and reliability (WEC, 2000).
India has an estimated potential for SHP of about 15,000 MW and 4,096 potential
sites with an agregate capacity of 10,071 MW for projects up to 25 MW capacity have
been identified. Today, 420 SHP projects up to 25 MW station capacity with an aggregate
capacity of over 1,423 MW are in operation. These projects are spread throughout the
country in hilly regions as well as on canal drops. Over 187 projects in this range with
aggregate capacity of 521 MW are under construction. Table 2 shows estimated potential
for small projects (Dudhani et al., 2006).

Turkey
Development of small hydropower began in the year 1902 in Turkey. Since then, many
small hydropower plants have been installed by government organizations, private sector,
and local municipalities in many parts of the country (Hepbaşlı et al., 2001; Kaygusuz,
1999, 2001, 2002; Bakış and Demirbaş, 2004). However, until now, as a result of rapid
increase in the field of energy consumption, the priority has been given to the devel-
opment of large-scale hydropower projects to recover an increasing energy demand and
to provide maximum energy to the Turkey’s economy. During last three decades, the
average annual increase of SHP capacity was 5–10%. As of 2002, the total development
of SHP capacity that is accepted as small hydropower according to the Electrical Power
Resources Survey and Development Administration (EIE), which is less than 10 MW, in
Turkey was 850 MW, and total annual energy production was 150 MW of 4,125 GWh.
However, 130 MW of these power plants were managed, and their annual firm production
and average production were 260 GWh and 510 GWh, respectively (DSI, 2004). At the
beginning of 2004, the total number of SHP plants in operation throughout the country
was 62, with a total installed capacity of 190 MW, about 1.5% of the total hydropower
 118 I. Yüksel

Table 2
Estimated potential for small hydropower projects in India (2002)

Total capacity identified, MW

Some states (up to 25 MW as on December 2002)

Himachal Pradech 1,625

Jammu & Kashmir 1,207
Uttar Pradesh 267
Uttaranchal 1,478
Maharashtra 600
Andhra Pradesh 255
Madhya Pradesh 336
Karnataka 652
Kerala 467
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Tamil Nadu 339

Bihar 149
Jharkhand 170
Gujrat 157
Orissa 157
Sikkim 203
West Bengal 183
North Eastern States 1,845
Total 10,270
Achieved on December 2002 14,678
Source: Dudhani et al., 2006.

potential in Turkey (DSI, 2004). Table 3 shows the summary of the total situation of
SHP development in Turkey.
Total installed project capacity of SHP is 2.45%, and the total energy potential
is about 2.96%, which has installed capacity less than 10 MW. At the end of 2004,
about 96% of the already-exploited potential was from dams and hydroelectric power
plants (HEPPs), and the remainder was from run-off river and canal SHP. Neglecting
the geothermal, wind, and solar generation, about 65% of the electricity is produced by

Table 3
Small hydropower development in Turkey (2004)

Number Installed Energy

of SHP capacity, MW generation, GWh

In operation 70 175.4 654

Under construction 6 21.7 130
In final design 7 38.8 168
Infeasibility and pre-feasibility 120 613.2 2,671
Total 203 849.1 3,623
Source: EIE, 2004.
 Development of Hydropower in Developing Countries 119

thermal power plants, and hydropower plants produce about 35% of the remaining elec-
tricity. Six SHP projects are under construction, and 127 SHP projects are still considered
at various stages of the projects, which are in final design stages or in feasibility stages
(Table 3). However, topographical and hydrological conditions of the country are suitable
to establish many small hydropower plants, water and head potential points along the
rivers and their tributaries existing especially in hilly rivers basin should be determined.
If existing rivers, lakes and their tributaries are evaluated again according to their head
potential points, there might be many available sides to install SHP plants along them,
especially in Eastern Black Sea Region of Turkey, which is the very rainy region of the
country and has more geographic and topographic advantage (Hepbaslı et al., 2001).

SHP a Sustainable Energy Technology

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Small hydropower projects are generally considered to be more environmentally favor-

able than both large hydro and fossil fuel powered plants, as these do not involve serious
deforestation, rehabilitation and submergence. Small-scale hydropower is economically
competitive with small-scale fossil fuel/steam-electrical power plants particularly if the
hydro sites are located near electricity demand centers (Bhatt, 2003) and are truly sustain-
able when they ‘internalize’ their environmental and social costs (Klimpt et al., 2002).
Sustainable development is the management and conservation of natural resources base
and the orientation of technological and institutional changes in such a manner as to
ensure the attainment and continued satisfaction of human needs for present and future
power generations. Such sustainable development conserves land, water, plant and animal
genetic resources, is environmentally non-degrading, technically appropriate, economi-
cally viable and socially acceptable (UNDP, 2000; Frey and Linke, 2002; Dudhani et al.,
2006).
Objectives of the sustainable energy developments are:

• Ensure security of energy supply,

• Maximize efficiency of generation and emphasize the use of renewable energy
sources,
• Promote energy conservation by users,
• Minimize emissions of green house gases and other pollutants,
• Maintain local air quality and limit and reduce the contribution to regional and
global environmental issues,
• Underline economic development by creating employment and export opportuni-
ties in the energy industry, and
• Ensure the availability of effective energy services for future generation.

Since the use of standardized power plant and local material are more applicable to
small-scale sites and indigenous developments of the small hydropower technologies,
the net cost saving may be sufficient to justify a preference for small-scale development
on both a national and regional economic basis. As these technologies do not need
construction of large dams, mitigation of mass population, deforestation, silting problem
with large reservoirs, etc. is not applicable and, hence, is environmentally friendly (WCD,
2000). Small hydropower development brings prosperity and raises the standard of living
due to educational facilities, public health benefits, roads, electricity power and other
infrastructure developments.
 120 I. Yüksel

Recommendations for Sustainable Development of SHP

Looking to the future, there are good reasons to support small hydropower in Europe and
worldwide. First and foremost, it is a source of renewable energy, which, if used on a
small scale and handled sensitively, has few environmental risks. Increased use will help
to reduce CO2 emissions and help countries to achieve their Kyoto obligations as well as
to stave off global warming. Secondly, the depletion of oil and natural gas deposits will
lead to higher generation costs for thermal plants, helping to improve the economics of
SHP. It will also serve to enhance economic development and living standards, especially
in remote areas with limited or no electricity. Rural communities have been able to
attract new industries (mostly related to agriculture), owing to their ability to draw power
from SHP stations. In countries such as China, India, Turkey, and South Africa, rapid
SHP development has also boosted the development of local manufacturers to support
these hydropower plants. In addition, the ability of SHP to be combined with water
infrastructure projects will allow it to become a regular feature in developing countries
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as they overhaul their irrigation, water supply and sewerage systems.

Some recommendations for a sustainable development of hydropower include:
• Governments should establish an equitable, credible and effective environmental
assessment process that takes into account both environmental and social concerns,
with a predictable and reasonable schedule.
• Developing countries should develop energy policies that clearly set out objec-
tives regarding the development of power generation options, including small hy-
dropower.
• Project designers should apply environmental and social criteria when compar-
ing project alternatives, in order to eliminate unacceptable schemes early in the
planning process.
• Project design and operation should be optimized by ensuring the proper manage-
ment of environmental and social issues through the project cycle.
• Local communities should benefit from a small hydropower project, both in the
short and the long-term.

Conclusions
Small hydropower represents an alternative to fossil fuel generation and does not con-
tribute to either greenhouse gas emissions or other atmospheric pollutants. However,
developing the remaining hydropower potential offers many challenges, and pressures
from some environmental action groups over its impact has tended to increase over time.
Moreover, in the context of the restructuring of the electricity sector, markets may favor
more polluting and less costly options. On the other hand, small hydropower’s main
challenges relate to both economics and ecology. Small hydropower can be successfully
developed as long as it produces electricity at competitive prices and under conditions
that respect the environment.
China, India, and Turkey, as developing countries, have abundant SHP resources,
which are economically feasible for development. The majority of people in China and
India live in rural areas. In recent years, increases in population and environmental
damage have caused climate changes, natural disasters, inadequte energy supply, defor-
estation, and soil erosion in developing countries, especially in China, India, and Turkey.
In most rural areas of these countries, because of lack of potable water, electricity, and
convenient transportation, the local economy remained underdeveloped, and people were
 Development of Hydropower in Developing Countries 121

very poor. With the development of SHP projects in rural areas of these countries, some
problems discussed above should be solved.

Acknowledgment
I thanks Professor Kamil Kaygusuz for him valuable suggestions and assistance in prepar-
ing this manuscript.

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