Author: Jarra Hicks
A Brazilian co-op's approach to small-scale hydropower projects has shown how they can be commercially viable while also bringing benefits to the local community and the environment. It has brought a cleaner, more reliable source of electricity to the Alto Uruguai Gaücho district, improving the quality of life and business opportunities in the community.
Project overview
CRERAL is a co-op with 6,275 local members from 121 communities in the Alto Uruguai Gaücho district of Brazil. It employs 49 local people and has 240 volunteers. With support from the Brazilian Government, CRERAL has managed the district's electricity supply since 1969. It also owns the entire grid infrastructure, but until their first mini hydropower plant was installed in 2000, CRERAL was buying all its electricity from an often unreliable source.
The co-operative wanted to supply reliable, clean, renewable energy to its members, so decided to invest in its own electricity generating system. CRERAL installed one Kaplan turbine in 2000 and two Francis turbines in 2003, with a total capacity of 2.2 megawatts (MW). This supplies 24% of Alto Uruguai Gaücho district's electricity needs, and the hydropower development projects have brought many benefits to the community and the environment.
Project cost and funding
The 2.2 MW mini hydropower plant cost $1.42 million. This was 45% funded by the co-operative, the rest with a loan from a government bank. Based on average sales and money from carbon credits, CRERAL expects to have repaid the loan within eight years.
Background
CRERAL has installed two mini hydropower systems, at Abauna and Casata das Andorinhas. The 720 kilowatt (KW) Kaplan turbine at Abauna generates 1.7 gigawatts (GW) per year. It is a ‘low head’, or low water fall, turbine system, whereby water is channelled from the river with a 21-metre drop into the turbine house. Casata das Andorinhas has two 751 KW Francis turbines that generate 3.7 GW per year. Water is piped from a small dam in the river and falls 147 metres into the turbine house. Both turbines have been operating at about 70-90% capacity, due to seasonal water fluctuations.
Mini hydropower schemes are often considered to be commercially unviable, but CRERAL has found them to be viable in more ways than
one:
- Co-operative ownership means that the projects don't need to make a profit.
- The electricity goes to an existing grid, so there's no extra cost for infrastructure or distribution.
- Electricity is sold directly to co-op members.
- Income can be generated through the sale of carbon credits.
- The capital outlay for the equipment and installation was low by international standards, due to use of local engineers, manufacturers and installers.
CRERAL is also looking into small-scale biogas generation from pig manure, and ethanol distillation from sugar cane.
Challenges
There is concern in Brazil about the social and environmental impacts of large hydropower dams. CRERAL therefore wanted to introduce a hydropower scheme that was socially and environmentally suitable - in other words, using smaller, 'run-of-the-river' systems.
Mini hydropower plants need the right physical geography and water flow to be cost-effective and produce enough power. Flow needs to be as constant as possible, and the water needs to fall at least a few metres. Luckily, there are several suitable rivers in mountainous areas of the Alto Uruguai Gaücho district, which are ideal for smaller hydropower operations.
As homes and businesses in the district get more electrical equipment, and as more people join the co-op, demand for electricity increases. Demand is currently growing by about 6% a year, so CRERAL is working on energy-efficiency technology and education, and ways to expand its hydropower generation. And its energy-efficiency efforts include training sessions at meetings of the co-op. CRERAL plans to establish another 5 MW of mini hydropower in the near future - some in partnership with other rural electricity co-operatives and utility companies.
Results
As of May 2007, CRERAL’s hydropower plants had saved 9,609 tonnes of CO2 emissions. The co-op also works closely with other organisations to preserve water quality and restore native vegetation in and around the district's rivers.
Thanks to the increase in availability of clean, reliable electricity, local co-op members have been able to install more agricultural equipment, such as milking machines and commercial refrigerators, meaning they can produce more goods to sell. Some members report an increase in productivity and income of up to 50% as a direct result of the hydropower initiative. It has also helped people buy time-saving appliances like washing machines and improve their standards of living and comfort. CRERAL hopes improved employment opportunities, higher wages and better standards of living will encourage people to stay in the district, rather than head to the cities.
CRERAL has developed strong and effective democratic decision-making procedures that rely on members playing an active part in the co-op. As CRERAL explains: “Members make all key decisions - about investment, location, resources and so on - through local meetings, general assemblies and a council of leaders. Decisions on electricity supply are also made at local level, for instance whether to waive the bill for a family in financial difficulties”. Thus, the local people are directly involved in CRERAL decisions and planning, and CRERAL can be more aware of, and responsive to, the community's needs.
More information
The Ashden Awards for sustainable energy