Projects
		Environment
		Energy
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		Economics

ECONOMICS : Overview

Costs include design, construction, operation, maintenance and, when necessary, repairs. Revenues depend upon the amount of electricity delivered and the sale price. The sale price may depend on time of day, week or year when it is supplied. For example, power used during the daytime on a Wednesday in cold weather may be worth many times more than the same amount extracted on a Sunday night in summer. Certain uses for electricity, such as air conditioning, may produce the opposite effect. Potential buyers are consulted at an early stage in order to draw up sales tariffs.

Run-of-river hydro schemes are usually built and commissioned within six months. The cost of preparatory work should not amount to more than 6-8% of the total cost of a project. Significant revenues therefore usually flow within a short time of the major expenditure on a project. This greatly improves their economic appeal.

Project maintenance and repair work is usually inexpensive and straightforward if suitable precautions are taken in the design and implementation of the works. Local labour can often be employed for maintenance work. This serves to enhance the local economy in a positive manner.