Small-scale hydro power plants in Norway are profitable and generally viable from a socioeconomic perspective.
THEMA Consulting Group has, on the behalf of Småkraftforeninga, analyzed profitability, contribution to the GDP, and other non-quantitative beneficial effects of small-scale hydro power plants (<10 MW) in Norway. The report shows that whereas there are concerns regarding the profitability of several projects from a business perspective, the contribution to the GDP is dominantly positive across the portfolio of projects analyzed. Given THEMA’s power price and green certificates forecasts, it is estimated that the entire short-term potential of 3.35 TWh new small-scale hydro plants could contribute over 50 billion NOK2017 to the GDP over a 40-year period. In addition, small-scale hydro power plants are often associated with several other benefits such as improved road, power grid and telecommunication infrastructure and in some cases, increased protection against flooding. By increasing the local revenue through the water fall lease, property taxes and the use of local entrepreneurs the small-scale hydro power projects are also in many cases a decisive factor in maintaining habitation in areas where there at present are few other opportunities for new income.
Download the report here (in Norwegian):
THEMA Rapport 2017-08 >> Samfunnsnytte av småkraft