Pak-Hydro Energies (PHE)

[START-UP PROPOSAL]
M.Usman Sarwar
To become a top company that put contribution in producing green energy (clean),
environmental-friendly and cheaper electricity in Pakistan
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Table of Contents
1. Executive Summary:............................................................................................................................2
2. Mission Statement:..............................................................................................................................3
3. Business/Industry Overview:...............................................................................................................3
3.1. Micro Hydro Industry:..................................................................................................................3
3.1.1. Large Scale Analysis:................................................................................................................3
3.1.2. Small Scale Analysis:................................................................................................................3
3.2. Our Position in Market:................................................................................................................3
3.3. Competition:................................................................................................................................4
3.3.1. Strategic Focus (Leadership, Management, Planning):..................................................4
3.3.2. People (Personnel, Staff, Learning, and Development):.......................................................4
3.3.3. Operations (Processes and Works):.....................................................................................4
3.3.4. SME Collaboration:..............................................................................................................4
3.3.5. Finances:..............................................................................................................................5
3.3.6. Product Demand and Resources:.........................................................................................5
3.4. Why Pak Hydro Energies(PHE):....................................................................................................5
4. Product Demand/Need Analysis:.........................................................................................................5
5. Suitable Site Analysis for PHE:.............................................................................................................7
6. Marketing and Sales Plan:...................................................................................................................7
6.1. Our Costumers:............................................................................................................................7
6.2. Products and Services:.................................................................................................................7
6.2.1. Products:..................................................................................................................................7
6.2.2. Services:...................................................................................................................................8
6.3. Primary Objectives:......................................................................................................................8
6.4. Advertisement:............................................................................................................................8
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1. Executive Summary:
With the recent rise in energy costs many people have been looking to
alternative sources of energy. One of the best renewable energy sources is
running water. As we have canal system for irrigation purposes and having
natural streams of flowing water from the heights of Northern Areas it means we
have a lot of renewable energy but unfortunately, we have lack of expertise in
market place to utilize these recourses efficiently.

As everybody knows it is expensive and difficult to install a small micro

hydro power plants and difficult to get stable output. Considering these
problems, we have done a project by successfully getting stable output by
depressing the intermittencies regarding voltages by adopting a new approach of
storing energy in Supercapacitors. In this way we are also able to overcome the
problem of missing transient energy because of fast responding time of
Supercapacitors.

As, our idea is to launch a product in market so, we will design a small
micro hydro power plant as final product for our local costumers. This project
includes designing and fabrication of turbine (all the parameters of turbine from
wheel to base pipe including generator frame that are adjustable and can be
varying so that one can easily adjust and mount according to their site), gearbox
designing and fabricating, generator selection and assembling with gearbox,
supercapacitors to remove intermittencies and storing energy so, that we can
ensure back up energy in case of any fault, Inverter selection and installation,
and switchgear or control panel to control the output.

This project can be use as commercial, residential and for experimental

(learning) purposes in universities. This 1KW power plant prototype is fully
adjustable, portable, cheaper, reliable and maintenance free. This project ensures
24/7 service continuity as compared to other renewable recourses (Solar or wind)
and having negligible payback period as compared to the total life of plant.

This experimental platform is cheaper solution and marketable. The instruction

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manual has completed and soon we commercialize this product.

2. Mission Statement:
Designing, fabricating and installing the most efficient, cheaper, reliable and long
lasting zero head micro hydro power plants in Pakistan for the industries, universities and
local residents. And become top company that put contribution in producing green energy
(clean), environmental-friendly, cheaper electricity in Pakistan. Main objective is to focus
the poor and far flung farmers to provide affordable electricity solution.

3. Business/Industry Overview:
3.1. Micro Hydro Industry:
In Pakistan there is no trend of micro hydro power plants for the local
residents because of lack of expertise in market place. There are only few
industries or companies in Pakistan that are dealing with micro hydro power plant
designing and installation. Such as “Chitralengineerings” and “Mukhtar
engineering works” but they are designing only turbines not the complete power
plant as product.

3.1.1. Large Scale Analysis:

Small Hydropower is considered as one of the lucrative options for
generation of electricity. The sector has been mainly handled by the provincial
governments. If we discuss on large scale, at present 128 MW is operational in the
country, 877 MW is under implementation and around 1500 MW is available for
development. We can see there is appreciating demand of the power plant
designers in this sector.

3.1.2. Small Scale Analysis:

If we discuss on small scale, there is negligible trend of energy generation
from the renewable energy resources of flowing water in canals. Only few
power plants are working in Punjab at small scale of few Kilo-Watts power
but we can produce 6000MW from the canals of Punjab if we utilize these
resources.
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3.2. Our Position in Market:

We are dealing with the complete solution and offering the costumer with end
product (Electrical Power) including analysis, designing, fabrication,
installation, controlling and protecting. We are offering with the complete
operational power plant including project management, handling with budget
and making a cost effective solution.

3.3. Competition:
There is not any single competitor in market because our objective and
offerings are totally different. We are dealing with independent local power
plants at small level to utilize the water resources and providing the full fledge
solution with negligible capital cost.

Following are the key success factors of our business:

3.3.1. Strategic Focus (Leadership, Management, Planning):

As, our strategy is very different, we are focusing the benefit and
ease of costumers that we are providing all the facilities and complete guide at
single place. Costumers no need to worry about different problems facing in
current situation in Pakistan if someone wants to install its own hydro plant.
So, we are at advantage in market place that leads to success.

3.3.2. People (Personnel, Staff, Learning, and Development):

We have many fresh graduates who have potential and looking for
jobs we can provide opportunity to them as we are launching our company
after the graduation without any delay. So, we have biggest opportunity to
grab our classmates as partners, shareholders and we have easy to trainee
them and make a strong team.

3.3.3. Operations (Processes and Works):

As, we have prepared a model and we know about market place
and weakness of unexpertise who are already in market. Moreover, we have
faced all the challenges to prepare a sample now it’s very easy for us to do any
project in future.
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3.3.4. SME Collaboration:

One of the biggest problem was to deal with mechanical section
but now a SME in Faisalabad is interested in collaborating with us for the
fabrication of mechanical parts. So, we have biggest advantage of it because
we are satisfied with them as we have experienced while we were designing
our sample product.

3.3.5. Finances:
We don’t need huge amount of investment to start this type of
business; we just have to grab costumers by presenting the benefits in a better
way and we are expert in it.

3.3.6. Product Demand and Resources:

Pakistan has the largest canal system in the world. The total length
of canals in Pakistan is about 56,073km (estimated up to 1999) which means a lot
of renewable energy. About 60000MW (which is 90% of power generation) in
Pakistan depending on hydro resources but still Pakistan have energy short falls.
51 million (27%) population is living without electricity (2016).

3.4. Why Pak Hydro Energies(PHE):

There is a gap in market place regarding the fabrication and designing of
turbines and micro-hydro power plants so; our mission is to facilitate the
farmers, villagers and far flung dwellers (in Northern Areas), as they have a
lot of renewable recourses in form of flowing water in canals and up streams
but don’t have electricity. So our target is to provide a varying and adjustable
water wheel with adjustable generator frame so that one can easily install this
potable and adjustable solution according to their site.

4. Product Demand/Need Analysis:

Pakistan has the largest canal system in the world. The total length of canals in
Pakistan is about 56,073km (estimated up to 1999) which means a lot of renewable
energy. About 60000MW (which is 90% of power generation) in Pakistan depending on
hydro resources but still Pakistan have energy short falls. 51 million (27%) population is
living without electricity (2016).
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From past to now we were focusing to install hydro power plants on heads due to
which we have ignored a valuable renewable energy at zero heads (maximum length of
canals are at zero head with low flow rate). If we use these resources efficiently we will
be able to overcome the shortfalls.

Our aim is to construct a micro zero head power plants which could produce
sufficient power to light a couple of energy saver bulbs and fans up to wattage of 100W
to 150W that can suffice the requirements of far flung villagers and dwellers having
access to natural stream of water but no electricity supply. We will design and fabricate
such a turbine which will able to generate enough power which will able to facilitate
remote vicinity from low head and less flow canal.

Financial Benefit Analysis for both Industry and Costumers:

A 1KW zero head micro hydro power plant costs Rs.200000 from designing to
installation and we will sale it with 10% profit margin in Rs.220000 with a profit of
Rs.20000/KW which is very favorable and attracting price for the costumer as compare to
the advantages and lot of benefits. Let’s take an example, a 1KW plant of cost Rs.220000
produces energy of 24KWh (24units) in 24hrs so, according to it in a year it will produce
8760 units in year. Now if we look the current situation the electricity unit price is 15
rupees on average if we include tariffs. It means a plant can produce the power of
Rs.131400 in a year. It means the payback period is only 1.5 years. In 1.5 years costumer
can recover its capital cost. While the total estimated life of a power plant is of 50 years.
It means a customer gets benefit of Rs. 6,372,900 in plants whole life. I think this
example is enough to attract any costumer either it will be a resident, Industry owner or a
university.

I’m just talking about 1Kilo Watts, what if an industry of load 15Mega Watts
grants us to do the project for them. No doubt both the costumer and we will get benefit
from it.

If I will discuss about the canal system of Punjab to show the viability and
versatility of this business, According to a rough estimate we can produce 6000MW (6
times more power than Mangla dam) from the canals of Punjab if we utilize these
resources.
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Another way to grow our business in future is to install our own independent
power plant and we will sale energy to the industries and get benefit for the rest of
50years.

5. Suitable Site Analysis for PHE:

After analyzing our requirements and basic needs we decide to open our company
in “Small Industrial Scale Faisalabad” because we need steel works, plastic molding
works and welding. All these facilities are available there. Moreover, a SME named
“Strongman”offers to contribute and help us in mechanical works in their industry. So,
we also have industrial collaboration. All the raw materials are easily available there.
Moreover, we need to test our power plants after the completion of each piece to ensure
it’s working so there is also a canal near our site.

6. Marketing and Sales Plan:

6.1. Our Costumers:
Primarily we are focusing to facilitate:

 Far flung dwellers who have canal system or stream flowing nearby
but don’t have electricity.
 Formers, as they have canal system nearby for irrigation purposes.
 Local Residents.
 Universities, as they need small power plants to teach the students of
electrical or mechanical engineering in better way with practical
exposure.
 Industries, to provide them with cheaper electricity than WAPDA.
 Government, to install hydro power plants on large scale.

6.2. Products and Services:

6.2.1. Products:
Our product (Micro Hydro Power Plant) includes:

 Designing of Turbine and Gear System.

 Fabrication of turbine and Gear System.
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 Selection of Generator, Invertor and batteries.

 Cable Sizing.
 Control Panel Designing including Circuit Breakers for protection.

6.2.2. Services:
Our Services includes:

 Project Management.
 Visiting Site, calculating parameters and forecasting the maximum
output that we can get from that location.
 Cost effective budget planning.
 Purposing Payback period, total life of plant and how much we can
earn from that plant in its whole life.
 Assembling and Installing the Power Plant at site.
 Visiting site every five year for service, recommendations and
replacements of tools if needed.

6.3. Primary Objectives:

Our primary objectives are:

 Affordable Micro Hydro Power Plants, so that any residential or even poor
former could think about it.
 Reliable Energy Generation.
 No missing transient energy.
 Making sure that life of micro hydro power plant will up to 100 years.
 Payback period will be 5 to 10 years.
 Cheaper electricity than WAPDA.

6.4. Advertisement:
We will advertise through Posters, Newspapers, Electronic Media and social
media.