Friday, September 21, 2012

No. 64: Small hydraulic generation market grows more active (September 22, 2012)

Business trend:
The small hydraulic generation is defined as the hydraulic generation with a capacity of less than 1,000 kW. It is suitable for generation using a brook or an agricultural irrigation channel. It is a dispersed power system with a relatively stable output. Seabell International is actively expanding business in alliance with Osaka Gas. The company plans to increase sales quantity six times by offering a lease system without front-end payment. Farmers collaborate with Energy Bank Japan, a subsidiary of Osaka Gas, to conclude a contract with a leasing company. They pay the lease fee with revenue from electric power selling, and split the balance.

Nippon Koei has participated in the small hydraulic generation market with its medium-sized generators that have a capacity of 400 kW, though it specializes in large-sized generators with a capacity between 2,000 and 5,000 kW. With the introduction of the system to purchase power generated by renewable energy, power generators can sell power to electric power companies for 20 years. The selling price of power generated by hydraulic generation with a capacity less than 200 kW is set at 35.7 yen per kW, that with a capacity between 200 and 1,000 kW is set at 30.45 yen per kW, and that with a capacity between 1,000 and 30,000 kW is set at 25.2 yen per kW.  

Small Hydro Stream by Seabell

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