FINANCIAL EVALUATION

A decade ago the technologies for water energy utilisation were accessible only for governments or big companies and consortiums. This was the result of higher capital costs needed for the construction of WPP and HHKP. The advanced technologies changed all that as they make possible the constraction of peak WPP and HHKP that can serve the need of a single household. The capital costs of these technologies are still beyond the reach of a single household, but combined with the available funding opportunities these technologies have become a desirable investment.

In a typical WPP project the main costs goes for construction of the dam from 3 to 5 years. The return of the investment starts at least two years after the installation of the system (when the dam is 80% full) the operating costs are minimal, but the utilization of the installed power can't reach more than 25% because of the environmental regulations:
- conservation of the water resource
- maintaining a level of 80% full to avoid future flooding of the downstream communities.

To calculate the price of 1 kW/h of electricity you can use the following formula

P = (I/n + r + C)/E

P - Price 1 kW/h electricity
I - Capital costs (Investment price)
n - Depreciation term
r - Yearly rate
C - Operating costs
E - Generated electricity throughout the year in kW/h