Research on small hydropower development decision-making and project management?

Yangxian County is located in the eastern part of the Hanzhong Basin, surrounded by the Qinling Mountains in the north and the Bashan Mountain in the south. The Han River runs through it from east to west, forming a terraced terrain surrounded by mountains on three sides in the east, south and north, and low in the central and western parts. The superior geographical location makes Yangxian County very rich in water energy resources, with a theoretical reserve of 36.64kW and a developable installed capacity of 150,000kW. As a clean renewable energy source, hydropower has mature development technology, simple production management, and good performance Socio-economic efficiency and return on investment. Therefore, the development of small hydropower stations has been favored by many investors inside and outside the county, especially private enterprises investing in small hydropower projects has become a fashion. Here is a brief description of several principles that should be grasped in the decision-making and project management process of small hydropower projects to prevent decision-making errors, investment failures, and unnecessary economic losses and investment risks to investors.

1. Make correct investment decisions. Whether the investment decisions of small hydropower projects are correct is directly related to the success or failure of the construction project. Feasible investment decisions are the early stage and guarantee for generating good investment returns. Therefore, investment decisions should follow the following principles:

1.1 Scientific Principles for Investment Decisions With the extensive development of small hydropower resources and the widespread application of high technology in small hydropower stations, the country’s requirements for the development of small hydropower are increasing. The higher the level, the more difficult and complex it is for investors to make decisions than in the past.

It is neither feasible nor advisable to make decisions based solely on experience or adopt a "trilateral engineering" approach. The construction process of small hydropower investment projects is subject to many factors. The main factors that affect economic benefits include hydropower resource conditions, development technology content, construction conditions, financing, and electricity sales prices. These factors are interrelated and restrict each other. Small hydropower investment decisions should be comprehensively considered based on the concept of systems engineering to avoid insufficient consideration of some crucial factors. For example, the Xushui River Basin, a first-level tributary of the Han River, crosses regional and county boundaries. Taibai County in the upper reaches of the basin, Yang County in the middle reaches, and Chenggu County in the lower reaches are in the same basin. Each county has different development plans, which results in planning plans. They conflict with each other, and the development and output of hydropower are not reasonable. We should have built dams and stored water in the middle and upper reaches of the basin to form a storage capacity to support the cascade power stations in the entire basin. Properly regulate water use to achieve optimal benefits. However, the counties along the route lack unified planning plans. Most power stations are developed in a run-of-river manner, which prevents water energy resources from being fully and rationally utilized, and the scientific nature of project decision-making is lost.

1.2 The principle of maximizing investment value Investors should pursue the maximum investment profit. Most investors use the installed capacity of power stations and unit kilowatt investment as the basis for selecting investment projects, and often ignore the unit electric energy investment and investment of the project. The rate of return increases the risk of project investment. Profit and risk exist. Although small hydropower is a low-risk project, risk factors still exist. Failure to consider and handle them improperly will still lead to investment failure. Investors should pay attention to risk factors while considering maximizing returns, and correctly weigh the gains and losses of investment and increased returns versus increased risks. They must grasp a reasonable degree during the economic analysis and economic evaluation of the project to minimize risk factors.

2. It is necessary to improve the quality of preliminary work of small hydropower.

2.1 Do a good job in river basin planning and cascade rolling development. In order to make full use of water resources, Yang County is conducting a comprehensive review of the county's water energy utilization status. On the basis of detailed census, the water energy development in the basin is combined with farmland irrigation and human drinking water projects, unified planning, cascade development, and one blueprint to manage the end. This construction method of growing vines and melons not only saves investment, It also improves the overall benefits of the project. For example, in the Youshui River basin, Hongqiao Hydropower Station, Yanjialing Hydropower Station, Kafang Reservoir Damhou Hydropower Station, Wanghe Hydropower Station, Lianghe I and II Hydropower Station, Longwangtan Hydropower Station, Songjiayan Hydropower Station, and Youshui Hydropower Station were planned and built. Shuijie Hydropower Station and Buckwheat Mountain Hydropower Station. Wanniuba Hydropower Station, Jinshuijie Hydropower Station, etc. are planned in the Jinshui Basin. After the planning is finalized, whether it is national investment or individual investment, they will all obey the unified planning of the county and achieve the purpose of rational utilization of water energy resources.

2.2 To come up with the optimal design plan, the design sheet must carefully conduct actual surveys, conduct detailed investigations, collect and organize hydrological, meteorological and geological data, and conduct an objective and fair summary analysis of the construction conditions of the project, insisting on Combining theory with practice, a reasonable water energy planning scheme is selected, and in accordance with the design specifications and economic evaluation procedures of small hydropower stations, the guaranteed output multiple factor, annual utilization hours and installed capacity are finally determined. After the site and development form of the small hydropower station are determined, an important factor that determines the scale and economic indicators of the power station is the amount of water. Therefore, reasonable selection of design flow rate is particularly important. Some designs adopt shorter hydrological years for the basin, and the selected typical years lose their representativeness of the basin. Most run-of-river hydropower stations use ten-day average flow or even monthly average flow as the basis for calculating the design flow of the power station. The average annual power generation calculated over many years is often too large and unrealistic.

2.3 Adapt measures to local conditions and strive for excellence in the overall layout of the building, and properly handle the contradiction between building safety and investment. When making the overall layout of the building, the actual geology, landforms, and construction conditions should be used. Carry out individual building designs based on the geological conditions and conditions, and make the layout of each building as compact and reasonable as possible under the premise of meeting safety and application.

It achieves the purpose of simple structure, easy construction, reduced investment and convenient operation and management. To achieve the finalization, standardization and normalization of certain individual building designs as much as possible. Strive to work hard on the safety, reliability and flexible use of buildings when it is economically feasible. Particular attention should be paid to the study of flood control standards, flood calculation methods and the relationship between sedimentation, safe operation of buildings and investment.

Reasonably determine the installation elevation of the unit so as not to waste water head and fully estimate the harm of floods to the power station. During the construction of Ruyang County Jin Hydropower Station, overemphasis was placed on the utilization of the power station's water head. Although the installed capacity of the power station was increased, the flood control standards of the plant area were lowered. "6.9" in 2002 wasted water, and the harm of floods to the power station must be fully estimated. During the construction of Ruyang County Jin Hydropower Station, overemphasis was placed on the utilization of the power station's water head. Although the installed capacity of the power station was increased, the flood control standards of the plant area were lowered. The "6.9" flood in 2002 completely submerged all the equipment in the power plant area and factory buildings, causing a devastating disaster to the power station. The river bed at the tail water was raised by nearly two meters, and the tail water outlet was severely silted up, causing direct and indirect economic losses. The loss amounted to 10 million yuan.

3. Strengthen the construction and management of small hydropower station projects. After the small hydropower station investment project is decided, the investor's funding to establish a project legal person company is the first priority, which is conducive to the establishment of a restraint mechanism that combines responsibilities, rights, and benefits.

The investment of the legal person company guarantees the source of capital for the investment project. As the sole subject of the investment project, the legal person company avoids fragmentation in the construction and management of small hydropower stations. The implementation of the project legal person responsibility system can be responsible for the entire process of fund raising, construction implementation, production and operation, debt repayment and asset preservation and appreciation of hydropower construction projects. At the same time, a bidding system and a construction supervision system are implemented, and contract means are fully utilized to clarify the responsibilities and obligations of the owner unit, design unit, construction unit and supervision unit, so as to achieve the purpose of controlling project progress, project quality and investment.

Practice has proved that only by correctly grasping the basic principles of small hydropower project investment and carrying out the early planning and design of small hydropower projects in a pragmatic, adaptable, scientific and rigorous attitude can we ensure that the budget does not lack items and does not exceed the budget. If there are any missing items, conscientiously implement the "Three Systems", strictly do the "Three Controls and One Coordination", properly control the use of funds, the purchase of materials and equipment, construction safety, and technical quality, and make good use of various local preferential policies, Only in this way can the small hydropower industry develop and grow along a healthy and correct track.

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