Computer Model for Small-Scale Hydropower Policy Analysis

A computer simulation model of the obstacles and incentives to the development of small-scale hydropower in New England is presented. It serves as an effective communication tool between analysts and policymakers, helping them understand the implication of policy recommendations to increase small-scale hydropower development. Only four of the factors affecting development are included in the model: economics, licensing, construction, and retirement. From a financial point of view, the most promising developers are municipalities and investor-owned utilities. In the year 2000, it may be feasible to develop sites costing approximately double the present costs. Small-scale hydropower will generally be developed now only if developers are willing to accept risks. The inflationary effects of licensing and the complexity of the process might be the major disincentives associated with licensing.