
4.3 Go/No-Go Decision and Design Criteria Selection
Befcre proceeding,
this is a logical place to make the second go/no go
decision.
If the decision is to proceed with the project, then the design
criteria should be selected.
4.3.1 Go/No7Go Decision
This decision will be based on economics; therefore, you need to make
a preliminary cost estimate.
Evaluate. the responses received from the man-
ufacturer inquiries. The evaluation should be based on dollars for kW of
installed capacity and doll
ars per kWh of energy production.
Category 1 developers
who don't want to sell to a utility should look
at the dollar for kW capaci
ty.
Remember, the higher the head the less
expensive the turbine generator unit,
but the more expensive the penstock.
A later paragraph will tell you how to adjust for civil cost. Category 2
developers and thosL 4 Category 1 developers who plan to sell to the utility
should compare cost to the energy production (kWh), since the financial
return is based on kWh sold to the utility. A unit that costs less per kW
capacity may produce a lot less energy (kWh) and thus may not be as good a'
buy. Therefore, compare all responses in accordance with the procedure
presented below to select.the best economic alternative.
Before proceeding, look at the manufacturer's information sheets. Be
sure that you are evaluating equivalent items. In other words, if one man-
ufacturer or supplier is supplying a complete unit including governor or
load controller, etc.,
and the other is supplying a turbine or a generator,
the two costs cannot be compared without adding the additional cost to the
second machine.
R
For a preliminary cost estimate, a rule of thumb is that the civil
cost (i.e.,
structures, earthwork, penstock, transmission line, etc.) should
be less than or equal to the machinery cost. Therefore, to make a rough '
estimate of construction cost, take the equipment cost and multiply by 2.
If you are using an existing flume with very little civil work, the
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4.3-l