Handbook For Practitioners and Decision Makers
Handbook For Practitioners and Decision Makers
Handbook For Practitioners and Decision Makers
MAINTENANCE
STRATEGIES
FOR HYDROPOWER
Handbook for Practitioners
and Decision Makers
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ii | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Contents | iii
TABLES
Table 1 Major failures at hydropower facilities, 2005–2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 1.1 Key O&M performance indicators, by performance area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 1.2 Minimum KPIs of fleet O&M performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Table 2.1 Typical objectives of an O&M strategy (for illustration only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Table 3.1 Approaches to O&M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Table 3.2 Checklist for deciding whether to repair or replace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Table 4.1 Strengths and weaknesses of Model 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Table 4.2 Strengths and weaknesses of Model 2 (some O&M is outsourced) . . . . . . . . . . . . . . . . . . . . . . . 54
Table 4.3 Strengths and weaknesses of Model 3 (all O&M is outsourced) . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Table 4.4 Strategy selection based on owner capabilities to implement adequate O&M . . . . . . . . . . . . . 58
Table 4.5 Example of performance measures used to calculate incentive payments . . . . . . . . . . . . . . . . . 61
Table 5.1 Staffing levels at case study schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Table 5.2 Training requirements for technician and engineer at typical utility in North America . . . . . . 71
Table 6.1 Average life expectancy of plant parts and systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Table 6.2 O&M cost per unit of capacity and energy of case study facilities . . . . . . . . . . . . . . . . . . . . . . . 80
Table 8.1 Contractual arrangements to legally frame implementation of the O&M strategy . . . . . . . . . . 87
Table 8.2 Difference between a strategy plan and an operating plan for O&M . . . . . . . . . . . . . . . . . . . . . 89
Table 9.1 List of case studies and models adopted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Table B.1 Example of output from technical diagnosis on the need for major repair/replacement . . . . 104
Table B.2 Sample from site observations as part of diagnostic (Step 1) . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Table C.1 Typical hydropower O&M organization chart at the facility level . . . . . . . . . . . . . . . . . . . . . . . 106
Table C.2 Typical hydropower O&M support organization chart at the corporate level . . . . . . . . . . . . . 108
Table E.1 Commonly used key performance indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Table E.2 Two key indicators on performance, costs, and staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
iv | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Contents | v
vi | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
1 The handbook uses the term owner to define any party that might trigger and/or supervise preparation of an O&M strategy, including asset
Executive summary | ix
Step 1
Diagnosis
Step 8 Step 2
Implementation of Definition
the strategy of objectives
Step 7 Step 3
Validation of Key blocks
strategy of activities
Step 6 Step 4
Estimation of Exploration of O&M
costs contractual models
Step 5
Human
resources
x | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Executive summary | xi
2 https://www.hydroworld.com/index/hall-of-fame.html
2 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
3 To define and supervise the scope of work of the team, the owner may use the template terms of reference (TOR) found in Appendix G.
4 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
COMMISSIONING FAILURE
HYDROPOWER FACILITY, LOCATION DESCRIPTION
YEAR YEAR
Faulty gauges and inadequate control systems led to overtopping of the upper
reservoir and failure of a large section of the embankment, draining more
Taum Sauk Hydroelectric Power
than 4 million cubic meters in less than 30 minutes. There were no fatalities, 1962 2005
Station, Missouri, United States
but five people were injured. The failure resulted in permanent damage to the
surrounding landscape. Power generation did not resume until 2010.
An estimated 300,000 people had congregated to bathe downstream from the
Indira Sagar dam on the banks of the Narmada river near Dewas. Water levels
rose after the dam operator opened the flood gates at night without ample
Indira Sagar, India 2005 2005
warning downstream. More than 150 people were swept away. Human error
and lack of dam and public safety guidelines were the main causes attributed
to this accident.
A long chain of O&M failures culminated with excessive vibrations of one
Sayano–Shushenskaya Dam, Russia of the turbines and failure of head-cover bolts, causing destruction of the 1978 2009
powerhouse, loss of 6 GW of power generation and 75 fatalities.
Unprecedented flash floods in June 2013 in the State of Uttarakhand caused
Dhauliganga Hydroelectric Station, the complete submergence of the powerhouse. The failure resulted in massive
2005 2013
India debris accumulation, electrical equipment replacement, and loss of total
generation capacity (280 MW) for more than six months.
The spillway of the United States’ tallest dam failed during operation after
heavy winter rains. The emergency spillway came into operation and the
Oroville Dam, United States 1967 2017
slope downstream eroded rapidly. 188,000 people living downstream of the
dam were evacuated.
keeping records in 1928.4 ICOLD reports that where at the time of privatization in 2013, none
the failure rate has been reduced by a factor of of the eight installed units were available for
four over the past 40 years. Failure or inadequate generation. A facility with a theoretical value of
capacity of the flood discharge structure is the USD 2 billion, which should have been capable
most common cause of dam failure, which is typ- of generating electricity valued in hundreds of
ically a design flaw rather than a consequence of million dollars annually, was producing noth-
inadequate O&M. However, there is a need to peri- ing. After privatization, the status of the plant
odically assess the operating parameters of existing has improved substantially, as shown in the case
facilities, especially with the new knowledge and study.
understanding of the impacts of climate change.
Major failures can follow from a chain or cascade D. Why and when to prepare
of minor events, resulting in a pathway leading an O&M strategy
to a major incident. These may be caused by Expected benefits from an effective
improper maintenance or inadequate repairs, O&M strategy
and failure to certify that repaired equipment is
fully operational and in satisfactory condition. Hydropower plants should have a very high level
of availability and longer life expectancy when
In addition to catastrophic failures as illustrated compared with most other generation technol-
above, major economic failures are relatively ogy, with over 95 percent availability possible
common. Facilities such as Inga 1 and 2 in the under favorable conditions. Such high levels of
Democratic Republic of Congo have suffered availability will only be achieved if the facility is
from years of underinvestment. Case Study 3, operated and maintained using good practices.
summarized in the final chapter and presented
in detail in the companion report Operation An effective O&M strategy will safeguard the
and Maintenance Strategies for Hydropower— environment and the safety of employees and
Case Studies, illustrates such a failure at Kainji, the public while maximizing the benefits of the
4
International Commission on Large Dams—ICOLD. 2017. Dams’ Safety is at the very origin of the foundation of ICOLD. Available at http://
www.icold-cigb.org/GB/dams/dams_safety.asp.
6 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Preparing Implementing
O&M strategy
O&M strategy
influence project design. Collaboration between For a new facility, an O&M strategy should be
the project stakeholders, including owners, prepared at the feasibility stage as illustrated in
operators, designers and, where possible, equip- Figure 2.
ment suppliers and contractors, will help define
the concept, including the choice between a When undertaking feasibility and detailed design
manned or unmanned facility, requirements studies, it is now standard practice to prepare
for data acquisition and telemetry, provision risk management matrices in order to identify,
of accommodation, control rooms, and other mitigate, and manage project risks at all phases,
personnel-related facilities. It will also influ- from development, construction, and opera-
ence the design of major components such as tion, to decommissioning. Such a matrix should
the type of dam, choice of spillway, approach to include all aspects of operation and maintenance,
sediment and trash management, and the extent including technical, safety, commercial, environ-
of maintenance facilities to be provided on site. mental, and reputation risks. The matrix should
The concept should be developed to take into be a dynamic document, updated regularly.
account the environmental and socioeconomic
constraints that emerge from such stakeholder The issue of not considering the full requirements
discussions. for O&M early enough are discussed in the case
study for Mount Coffee (Case Study 2). Some of the
A well-developed O&M strategy is also likely capital costs of key components, such as the oper-
to give confidence to funders, off-takers, and ators’ village, workshop, and heavy maintenance
authorities, by demonstrating that contractual, equipment, were not covered by the funding for
human resource, and organizational require- reconstruction of the project. It has subsequently
ments for effective O&M were considered early proved difficult to finance these components from
in the project’s design. Such a strategy will also the revenues of the facility, leading to difficulties
ensure that the costs for preparation and imple- with staff retention and operations.
mentation of the O&M functions are accounted
for in the project’s costs and the business model. In order to help owners determine whether it is
In the case where the O&M capability of the appropriate to develop a new O&M strategy for
owner/developer is poor, the formulation of an a hydropower facility or fleet of several hydro-
O&M strategy, possibly including appointment power facilities, the flowchart in Figure 3 may
of external contractors, may be a precondition be used.
for funding. In this case early market soundings
are advisable to determine the appetite of O&M Whether for existing plants or for a new hydro-
contractors or advisors to participate. power fleet, all O&M strategies should be
8 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Start
No No No No Yes
O&M can be
improved and
would benefit from
a new strategy.
■ transboundary and multipurpose issues; e.g., ■ Step 1: Diagnose existing O&M arrange-
basin management, irrigation demands, etc. ments, budgets, and owner/operator capabil-
■ local transmission constraints affecting ities. For existing hydropower fleets, assess
hydropower operations the condition and performance of the assets
■ number of machine-units in the facility and services, including risks related to major
equipment and need for replacement and
■ owner of the facility and its approach to O&M
repairs.
and safety
Step 1
Diagnosis
Step 8 Step 2
Implementation of Definition
the strategy of objectives
Step 7 Step 3
Validation of Key blocks
strategy of activities
Step 6 Step 4
Estimation of Exploration of O&M
costs contractual models
Step 5
Human
resources
■ Step 2: Based on this diagnosis, define the for economic viability, it may be necessary to
objectives to be achieved through the imple- go back to Step 2 to adjust objectives, activ-
mentation of the O&M strategy. ities, and resources. Once financial viability
■ Step 3: Explore various activities to be of the proposed strategy is achieved, internal
undertaken to achieve these objectives. and external validation can be sought.
■ Step 4: Depending on the capabilities ■ Step 8: Implement the strategy and prepare
identified in Step 1, and activities selected in annual and rolling five-year operating plans
Step 3, explore O&M contractual models to and longer-term capital programs. Overall
identify which activities will be implemented performance of the strategy will be monitored
internally and which will be outsourced. through key performance indicators (KPIs).
■ Step 5: Explore organization and staffing
The final O&M strategy will include the key find-
options (and organograms) according to
ings from each of the eight steps, namely a(n):
owner capacity and requirements for external
training and human resources. 1. comprehensive diagnosis of the fleet, its
■ Step 6: Estimate financial resources environment, O&M practices, and resources,
required for implementing the selected including issues with dam safety and
model, including any external contracting. socio-environmental aspects
■ Step 7: Carry out cost-benefit analysis to 2. clear definition of objectives based on KPIs
assess the economic viability of the proposed 3. concrete set of activities that will ensure
strategy. If the strategy does not pass the test delivery of expected performance
10 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
14 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
KEY PERFORMANCE
DESCRIPTION METHOD OF CALCULATION
INDICATOR
Indicates the frequency of unplanned outages FOR is the sum of all hours a unit (or line) was out of service
Forced outage rate (FOR) and correlates closely with the health of the because of immediate, delayed, or postponed forced outages. A
equipment. forced outage is an outage caused by an unplanned component
failure or other condition within the station that requires that a unit
or line be removed from service immediately or before the next
regular standstill. Service hours are the sum of all hours during
which the unit is connected to the grid.
Number of noncompliance incidents with environmental regulations, environmental license, and/or corporate
Environmental-social impact
environmental and social policies, including pollution prevention and abatement,5 catchment management, reservoir
performance
management, downstream and compensation flow management, water quality, and social action plans.
Indicates the frequency of lost-time injuries in a A lost-time injury is an injury resulting in a worker not being able
Accident frequency rate
specified period. to work for some day(s) following the injury as a direct result
of an occupational activity (including a journey to and from the
workplace). A fatality is not considered a lost-time injury.
Indicates the seriousness of workplace injuries The number of lost days represents calendar days the employee
Accident severity rate
and/or number of injury-related fatalities is unable to work beyond the day of the injury. A lost-time injury is
an injury resulting in lost days beyond the date of injury as a direct
result of an occupational Injury.
Table 1.2 shows KPIs that provide a sufficiently identified above, additional information can be
high-level picture of fleet O&M performance (but sought with respect to human resource manage-
not the underlying drivers). ment, such as ratios of staff to energy production,
installed capacity, and investment in training.
Long-term trends should be identified in the
diagnosis whenever possible to determine Financial metrics may be useful in understanding
whether the KPIs are improving or deteriorating. the adequacy of funding for plant operations and
Assuming that sufficient information is avail- capital budgets and whether tariffs are returning
able to carry out a high-level review of the KPIs enough funds to support sustainable O&M.
5 https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/
ehs-guidelines
The number of categories for likelihood, impact, In carrying out the analysis, numerical values
and risk level varies according to the practice are assigned to each category of likelihood and
of individual organizations, but it is common to impact. These are factored to derive a “risk
use four or five categories for each. The example score.” A range is assigned to each level of risk,
illustrated in Figure 1.1 uses five categories for and the risk level for each component is then
likelihood and impact, and four categories for defined according to the range in which the risk
levels of risk. score lies. The numeric values for the catego-
ries and the ranges may be varied to ensure that
The number of categories and their nomencla- appropriate risk levels are assigned for the com-
ture should be established to match the termi- bination of likelihood and impact.
nology used by the organization in other types of
risk analysis. This can be seen in Figure 1.1. In this example,
any risk with insignificant impact is classed
The five likelihood categories in this example are: as low, and any catastrophic risk is classed as
extreme unless it is unlikely, in which case it is
1. unlikely classified as high. There are 25 combinations of
2. seldom likelihood and impact.
3. occasional
An illustration of a high-level risk analysis for
4. likely
the condition of hydropower components using
5. definite these categories is shown in Figure 1.2. This
16 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
IMPACT
high-level analysis does not consider individual the nature and scope of any works required to
risks to each component (i.e., different types of restore, secure, and/or modernize the facility.
failures). Instead, it groups all units together. The need for refurbishment does not by itself
Typically, each unit in a multi-unit facility would indicate that there are O&M shortcomings,
be assessed separately, as they may have differ- but the need for refurbishment could be one
ent ages, operation and refurbishment history, of the key indicators if the components are not
and other distinguishing features. life-expired; investigation is required to deter-
mine whether refurbishment needs are reason-
More sophisticated analysis can define individual able given the age and operating hours of the
risks (often several potential failure modes for an facilities or whether refurbishment is needed
individual component), assign probabilities and because of inadequate O&M practices. In the
revenue loss impacts, and consider mitigating case of major hydro-mechanical or civil struc-
measures such as insurance cover. Such analysis tures, the need for rehabilitation may also arise
enables the risks to be ranked in quantitative due to site conditions, a fault in the original
terms. When combined using Monte-Carlo type design, or inadequate quality or construction
analysis, a revenue loss-probability profile can methods.
be produced. However, such detailed analysis
is not generally conducted as part of an O&M These findings help formulate the O&M strat-
strategy development. High-level assessments egy and are important to determine the owner’s
are sufficient. capability to bring about changes in the operat-
ing business environment. Carrying out a con-
dition assessment of the facility will add value
1.3 Condition assessment in determining current and future investment
of assets requirements, particularly where plant perfor-
Condition assessment of most critical compo- mance indicators may not be available.
nents of the fleet is essential for understanding
RISK CLASSIFICATION
ID DISCIPLINE EQUIPMENT HAZARD LIKELIHOOD IMPACT RISK LEVEL
ELECTRICAL
E1 Station service Powerhouse AC station service Plant operation failure Occasional Moderate High
E2 Station service Station lighting Plant and staff safety Occasional Marginal Medium
E3 Station service Powerhouse DC system Unplanned outage Seldom Moderate Medium
E4 Station service Powerhouse diesel generator No blackstart capability Seldom Marginal Low
E5 Station service Powerhouse battery system Plant operation failure Occasional Moderate High
E6 Station service Powerhouse station service transformer Plant operation failure Seldom Moderate Medium
E7 Station service Fire detection system Plant and staff safety Seldom Critical High
E8 Protection and controls Protection and control systems Unplanned outage Occasional Moderate High
E9 Governor Unit 1 governor controls Unplanned unit outage Occasional Moderate High
E10 Substation 115 kV CBs (circuit switcher) Unplanned outage Seldom Moderate Medium
E11 Substation 115 kV surge arresters Unplanned outage Seldom Moderate Medium
E12 Substation 115 kV VTs and CTs Unplanned outage Seldom Moderate Medium
E13 Substation GSU transformer Unplanned outage Seldom Moderate Medium
E14 Substation DGA monitor on GSU Unplanned outage Seldom Moderate Medium
E15 MV system 4.16 kV switchgear Unplanned outage Seldom Moderate Medium
MECHANICAL
M1 Sluice gates LLO gate, hydraulic actuator and HPU Public safety failure Unlikely Catastrophic High
M2 Intakes Intake gate, hydraulic actuator and HPU Unplanned outage Seldom Moderate Medium
M3 Intakes Trashracks and cleaner Increased maintenance costs Likely Marginal High
M4 Draft tube gates Draft tube stoplogs and follower Cannot perform maintenance Seldom Marginal Low
M5 Ancillaries Cooling water systems Increased maintenance costs Occasional Marginal Medium
M6 Ancillaries Unit HPU Increased maintenance costs Unlikely Marginal Low
M7 Generators Generator stator Increased maintenance costs Unlikely Moderate Low
M8 Generators Generator rotor poles and exciter Increased maintenance costs Seldom Moderate Medium
M9 Turbines Turbines unit (including runner) Unplanned unit outage Seldom Moderate Medium
M10 Water systems Powerhouse service water system Plant and staff safety Occasional Marginal Medium
M11 HVAC Powerhouse HVAC system Unplanned outage Seldom Moderate Medium
M12 Water systems Sump pumps and oil water separator Environmental hazard Likely Marginal High
M13 Crane Powerhouse OH crane (elect and controls) Cannot perform maintenance Occasional Moderate High
CIVIL
C1 Access road Access road formation Public and staff safety Definite Moderate High
C2 Safety boom Safety boom structure and floats Plant safety Likely Moderate High
C3 Debris boom Debris boom structure and floats Plant safety Likely Moderate High
C4 Water conveyance Diversion, intake and tailrace channel Increased maintenance cost Definite Marginal High
C5 Bridge Bridge structure Public and staff safety Seldom Moderate Medium
C6 Main dam Rockfill dam structure Plant safety Unlikely Catastrophic High
C7 Main dam Instrumentation Plant safety Seldom Moderate Medium
C8 Overflow spillway Overflow spillway concrete structure Plant safety Seldom Critical High
C9 Overflow spillway Overflow spillway channel Plant safety Occasional Critical High
C10 Low level spillway Low level spillway concrete structure Plant safety Seldom Critical High
C11 Low level spillway Low level spillway waterways Plant safety Seldom Critical High
C12 Low level spillway Low level spillway equipment building Increased maintenance costs Occasional Insignificant Low
C13 Intake Intake pier Increased maintenance costs Seldom Marginal Low
C14 Intake Intake deck Staff safety Occasional Marginal Medium
C15 Intake Intake superstructure Increased maintenance costs Likely Marginal High
C16 Penstock Penstock pipework Plant safety Seldom Critical High
C17 Penstock Penstock ancillary structures Plant safety Occasional Moderate High
C18 Powerhouse Powerhouse substructure Increased maintenance costs Unlikely Moderate Low
C19 Powerhouse Powerhouse superstructure Increased maintenance costs Seldom Marginal Low
C20 Powerhouse Powerhouse roof Increased maintenance costs Likely Marginal High
C21 Powerhouse Turbine discharge chamber Plant cleanliness—hygiene Definite Marginal High
C22 Powerhouse Domestic water and septic system Staff safety Likely Marginal High
C23 Powerhouse Tailrace piers Public safety Seldom Moderate Medium
C24 Powerhouse Tailrace deck Staff safety Occasional Marginal Medium
C25 Fish habitat Fish habitat structures Environmental compliance Likely Marginal High
C26 General Dam safety Public safety Likely Catastrophic Extreme
C27 General Public safety/security Public safety Seldom Critical High
18 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Time-based
Planned interval
maintenance
Usage-based
Inspection-based
Preventive Condition-based
maintenance maintenance
Based on continuous
monitoring
Inspection- and
Predictive monitoring-based
Maintenance maintenance
program
Trending analysis
Immediately
Corrective
maintenance
Delayed
■ evaluation of any anomalies that may cause ❑ emergency: when the anomalies repre-
failures or malfunctions, including deterio- sent a risk of imminent rupture, requir-
ration or defects in the dam and appurtenant ing urgent measures to prevent and
structures mitigate human and material losses.
■ comparison with previous safety inspections ■ indication of measures necessary to guaran-
■ diagnosis of the level of safety of the dam tee the dam and structure safety.
and appurtenant structures according to the
following categories: Examples of the outcomes from conditions
assessment are provided in Appendix B and illus-
❑ normal: when there are no signifi-
trated in Figure 1.3:
cant anomalies; routine monitoring is
required
The diagnosis should also include assessment of
❑ attention: when the anomalies do not whether appropriate tools and equipment needed
compromise the safety of the dam and for the proper O&M of the plant are available and
structures in the short term, but require in good condition, and an inventory of spares
monitoring, control, or repair over time should be produced, including:
❑ alert: when the anomalies represent a
risk to the safety of the dam and struc- ■ large spare parts (like spare main bear-
tures, requiring measures to maintain ings, spare cooler coils, spare stator wind-
safety conditions ings/bars, field poles, slip rings, breakers,
20 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
6 Critical assets are assets whose failure would cause loss or reduction in energy output, a threat to employee and public safety, or damage to
the environment. Noncritical asset failures are addressed on a site-specific, cost-benefit basis. The criticality of each asset will vary from facility
to facility, and hence critical assets must be identified individually for each facility.
22 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
In this first step for preparing an O&M strategy, the diagnosis seeks to (i) identify missing informa-
tion and required data collection activities to inform the diagnosis, (ii) identify and prioritize key
areas of poor performance and those requiring improvements, and (iii) identify root causes of poor
performance. The results of the diagnostic reviews in Step 1 allow for a better understanding of the
owner’s capacity to deliver effective and sustainable O&M and provide insight into the business
environment in which the O&M strategy and supporting actions must be delivered.
■ analysis of relevant KPIs and root cause analysis for any poor performance
■ high-level technical diagnosis on facility condition (for existing fleet)
■ review of available/existing human, managerial, and financial capabilities
■ organizational/governance audit and recommendations for changes, if applicable
■ review of business environment and regulatory issues identified in KPI root cause analysis.
7 The public/private power supply utility responsible for the operation and maintenance of the majority of electricity generation in Kenya.
26 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Will be the time-bound objectives of the O&M strategy, including targeted objectives (with metrics
on KPIs), and, if possible, a vision statement. Targets may be of a financial nature (budgets, reve-
nues) or related to production (energy generation), human resources (capacity building and staff-
ing), technical and operational issues (plant O&M performance), health, safety, the environment,
other corporate social responsibilities, and any required changes to governance and regulation.
The financial benefits of implementation of the strategy objectives valued in Step 2 are used later
for the cost-benefit analysis that will form part of validation of the O&M strategy.
28 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Time
hydropower is unique among generating technol- period of the contractor. The output period,
ogies, and the operating life of a well-maintained during which low failure rates are observed,
plant can extend far beyond its design life. should extend over a period of decades. The end-
of-life upsurge in failures can be avoided if the
Hydropower facilities should be highly reliable, plant is maintained in good order and compo-
although the reliability can vary during their life nents are replaced before they start to fail.
cycle. Like most industrial infrastructure, there is
an initial breaking-in period in which any design, Operation of hydropower facilities
material, manufacturing, installation, testing,
Hydropower operation is a continuous activity
and commissioning shortcomings manifest
that requires qualified staff and management
themselves in reduced reliability. These issues
to ensure that the plant or fleet is operated in
tend to be resolved over time, and the facility
accordance with its design, with the applicable
enters a period of relative calm in terms of fail-
agreements, licenses, laws, market rules, and
ures and corrective measures (output period),
regulations, to meet the needs of the energy
until it begins to show its age during the end-of-
system. If the facility or fleet is owned by an
life period. This results in the maintenance life
independent power producer (IPP) as a conces-
cycle following a “bathtub curve” (Figure 3.1).
sionaire, it will additionally be governed by the
concession license and operating agreement,
In the case of hydropower, the break-in period
the requirements of PPAs and by commercial
typically lasts for the first two years of operation,
considerations.
during which most “teething issues” are resolved.
This period is typically covered by the equip-
Each hydropower development is unique in
ment supplier’s warranty and the defects liability
design, reflecting the site location, the type of
32 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Time-based
Planned interval
maintenance
Usage-based
Inspection-based
Preventive Condition-based
maintenance maintenance
Based on continuous
monitoring
Inspection- and
Predictive monitoring-based
Maintenance maintenance
program
Trending analysis
Immediately
Corrective
maintenance
Delayed
34 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
36 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
cascading hydropower facilities, peaking can be Increasingly, hydropower operators are employ-
implemented at the upper site, with the lower ing remote telemetry to transmit meteorological
site acting as a re-regulating reservoir and thus and hydrological data from the reservoir catch-
reducing downstream impacts. ments to provide inflow data. The data can be
used to augment data from the hydropower site
Typically, the spot pricing of power is highest to provide up-to-date records for planning opera-
during peak hours. Hence the benefits of pro- tions and for developing new rule curves. How-
viding peak power are likely to include higher ever, it can also be used in real-time to program
revenues and support to the grid. Detailed generation, thereby optimizing the use of the
hydrological, market, and financial analyses are available water.
required to optimize the selection of such option.
Reservoir optimization studies can be performed
Optimizing reservoir operation (or at least recommended in the strategy) to
more accurately predict short- and long-term
The purpose of hydropower reservoirs is to store
inflows, optimize power generation for meet-
water to control energy production over time.
ing domestic demand whilst maximizing export
Simulating reservoir inflows is important in
revenues, improve flood management, and
order to assess the full range of inflows into the
balance multipurpose use of the reservoir by
reservoir and when storage is being utilized to
meeting environmental and social obligations.
meet the required outflows (Figure 3.3). Inflows
These obligations should include the ecological
are usually calculated from changes in storage
flow releases defined in the environmental and
volume and total outflows using the water bal-
social management plans, operating licenses, and
ance equation. The accuracy of the inflow cal-
national legislation.
culation is directly dependent on the reservoir
storage volume estimation, measured outflows,
A useful methodology to establish whether res-
and water elevation measurement in the reser-
ervoirs are being operated well is to run a reser-
voir. Operating a facility within the prescribed
voir power and energy simulation model such as
operating rule curves requires the calculation
HEC-3 (USBR) using actual historic hydrological
of daily inflows and forecasts of weekly and
data and to compare the simulated electricity
monthly inflows.
38 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
8 https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/ehs-
guidelines
9 https://www.worldbank.org/en/projects-operations/environmental-and-social-framework
40 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
10 https://www.hydropower.org/sediment-management
11 http://documents.worldbank.org/curated/en/372731520945251027/pdf/124234-WP-Eflows-for-Hydropower-Projects-PUBLIC.pdf;
http://siteresources.worldbank.org/INTWAT/Resources/Env_Flows_Water_v1.pdf
42 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Transmission
Lightning protection
system (connected to
Central
metal frames supporting (from other arrays)
PV modules inverter
modules and grounded)
Floats/
pontoons
Transformer
Combiner box
Mooring lines
Anchoring
The cost of implementing, operating, and main- About 1.5 hectares of reservoir area are typically
taining a bespoke CMMS is relatively high needed to set up a 1 MW floating solar plant
because of the customized nature of the software. (Pickerel, 2016). Many factors might affect this
Standardized cloud-based solutions can also be requirement, such as the type of floats being used
considered since they have a reduced purchase and the distance from the shore for electrical
price and are generally hardware indepen- design aspects.
dent, providing a lower-cost solution for asset
management. Solar land development on the vicinity of the
hydropower facility (hydro-connected solar) can
Floating or hydro-connected solar plant also be considered as another option to benefit
from available land, and existing substations,
A floating solar plant is an array of solar panels
lines, supervisory control and data acquisition
on a structure that floats on a body of water, typi-
(SCADA), and human resources.
cally a reservoir or a lake, as illustrated in Fig-
ure 3.4. The power generated from the floating
solar plant can be transmitted to the grid using 3.7 Integrating O&M in the
an existing hydropower substation, saving the design of new projects and
cost of separate interconnection. Floating solar
major refurbishments
is a relatively new concept. Its benefits include
reduction of evaporation in the reservoirs, which There is a trade-off between initial capital
could be important in large reservoirs in hot and expenditure and the cost of O&M. Typically a
dry climates. high-specification design with high-quality con-
struction and equipment will cost less to operate
World Bank’s ESMAP (Energy Sector Manage- and maintain, last longer, have fewer outages,
ment Assistance Program) has been investigating and produce more energy.
opportunities for installation of floating solar
equipment. There are many aspects to designing for ease of
operation and maintenance and reduced O&M
44 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Includes identification of the core activities and measures required in order to achieve the strategic
objectives established in Step 2, based on the diagnosis completed in Step 1.
Owner’s risks
Divestiture
Concession
contract
25–30 yrs
Affermage
contract
8–15 yrs
Management
contract
3–5 yrs
Service
contract
1–3 yrs
Technical
assistance Outsourced
contractor’s risks
increase the size of the contract to make it more training enables Model 1 to be deployed follow-
attractive. If there is insufficient interest, it may ing completion of the facility.
restrict the options to Model 1, or to Model 2,
with limited external support. Features and pros and cons of each model are
further analyzed in the following sections.
In the case of multinational ownership, as for
Rusumo Falls, a new entity (such as a special Model 1: Owner retains sole
purpose vehicle) may be formed to develop and responsibility for O&M
operate the facility. In this case, the entity would
Two versions of Model 1 are considered: Model
be analogous to a private-sector owner, but with
1A where the owner is a public entity—typically a
some public-sector constraints. It is important to
vertically integrated public utility, and Model 1B
ensure that this entity has adequate skills, capac-
where the owner is an IPP, or a private conces-
ity, and resources to undertake construction and
sionaire. Although the distinction between the
operation, which can be determined using the
two models is slight, in practice, a public entity
diagnostic process in Step 1.
is seldom able to make decisions purely on a
commercial basis and has greater regulatory con-
Related to Model 2 are the training sessions that
straints and political considerations to take into
are typically provided by the suppliers of electri-
account. In some countries, a public entity may
cal and mechanical equipment or EPC contrac-
not be permitted or may be discouraged from
tors. This training aims to build capability within
contracting out O&M services, and hence may be
the owner’s O&M team, and often starts early
constrained to using Model 1A in circumstances
during the construction contract. Providing that
where Models 2 or 3 might be more appropriate.
the owner has adequate O&M capability, this
48 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
O&M services
Add public
relations
Add
financial and
procurement
Add
compliance
Add
operating
services
Technical
maintenance
Broad scope
services
the owner. Outsourcing some O&M activities engineering firms to carry out maintenance of
can be limited, extended to some specific areas civil works and inspection and maintenance of
of maintenance or functional system such as for hydraulic structures. Contracting such services
electromechanical parts and information and can also be built around coherent functional
communications technology (ICT), or expanded systems, which helps in clarifying responsibilities
to include a larger number of areas of respon- between the owner and service providers.
sibility. This is illustrated in Figure 4.2, where
services are progressively expanded from left to Plant operation
right, until the scope is close to that of Model 3. Responsibility for operation of the plant can also
be outsourced. Plant operations can be managed
Various options for Model 2 are presented in the in a variety of ways, depending on the vintage of
subsections below. the plant and the control, protection, and com-
munication links between the facility and control
Technical maintenance services
center. Modern data links and communication
Technical maintenance services (including systems allow remote and centralized opera-
maintenance of electrical, mechanical, communi- tion, theoretically permitting station control and
cation, control, and protection activities) are the operation to be outsourced. Since local control
most commonly outsourced services. Outsourc- and operation requires continuous staffing on a
ing these services allows the utility to resolve three-shift, 24-hour basis, there are potentially
equipment problems and carry out the mainte- large savings to be achieved from outsourcing
nance program on a pre-established schedule at to a remote operator. However, especially with
predetermined costs. With a modern plant much public-sector owners, these savings must be bal-
of the monitoring can be undertaken remotely, anced against the costs of installing modern sys-
such as from an equipment supplier’s head office, tems and the likely resistance and socioeconomic
enabling cost-effective services to be provided. consequences of reducing the level of staffing
This level of outsourcing can include hiring on-site or re-deploying personnel.
50 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Public relations
Model 3: All O&M is outsourced
Although most owners retain control over pub-
This model places all responsibility for O&M with
lic relations, an outsourced operator can be
an O&M contractor.
requested to handle this task when it involves
relations with communities who may be affected
The poor history of hydropower sustainability
by day-to-day operations, environmental and
in some developing economies has increasingly
social issues, and compliance with site-specific
led to greater reliance on the private sector to
laws and regulations.
deliver new or rehabilitated hydropower facilities
Employment of personnel and to operate and maintain them under conces-
sion arrangements or outright ownership. Fully
In a more comprehensive O&M management outsourcing O&M to private sector organizations
package, the O&M outsourced contractor can, however, be problematic and risky. Doing so
could also provide the entire workforce. Doing within a large vertically integrated public utility
so may reduce the risks for the owner, but it may prove to be difficult without first unbundling
increases the risk of losing the entire O&M team the sector and introducing adequate regulations
in the event of a contractual disruption. If the
52 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
12 This is often the case as complete condition assessment of equipment would often require expensive and lengthy dismantling of units.
STRENGTHS WEAKNESSES
1. Responsibility for O&M lies with the entity, which has the greatest 1. Model subject to government interference, often starving a public
interest in ensuring a sustainable flow of revenues and the long- owner of finance for efficient O&M.
term safety and performance of the facilities. 2. Owner does not benefit from skills, efficiencies, and new processes
2. Cheapest arrangement for the owner. that could be introduced by outsourcing.
3. Owner retains full control over own investments and operating 3. Public sector procurement bureaucracy, currency constraints, and
budget. payment delays can make it difficult to buy spare parts.
4. If utility is not fully qualified to develop a project or conduct O&M, 4. Budgets for public owners seldom include provision for future
it can acquire ad-hoc and flexible technical assistance to improve capital investments, leaving plant reliant on donors for financing of
O&M functions and to meet new technological challenges. life extension, rehabilitation, or refurbishment.
5. Model requires only expansion and training of existing competent 5. Often centralized (and not always transparent) governance of O&M
workforce. budgets which hampers O&M expenditures (especially for remote
6. Labor costs and associated expenses are low. plants).
6. Poor incentives for staff to deliver quality O&M.
STRENGTHS WEAKNESSES
1. A way to share and disseminate best practices among owners. 1. Few competent and experienced O&M contractors offer services in
2. Model provides flexibility to the government, the owner, and donors/ developing countries.
financiers in augmenting the owner’s capability. Alternatively, a 2. Model weakens support from government and parastatal utility to
package of services can be outsourced to boost the technical and make significant changes.
financial turnaround of management of the owner’s generation fleet. 3. Weak procurement and technical capacity can result in weak and
3. Reduced responsibilities for the owner: responsibility for certain poorly defined service contract.
O&M functional systems transferred to an independent and liable 4. Difficulties for outsourced operator to commit to performance
operator via an O&M service contract. without knowing the status of equipment.
4. Model builds capacity of the owner’s organization, allowing gradual
transfer of responsibility back to the owner after sufficient periods.
5. Experienced staff can assist with commissioning, eliminating
technical issues during the initial operating period.
6. A full or partial service contract can be set up allowing capacity
building of the owner’s organization with a gradual transfer of
responsibility back to the owner after sufficient periods. This
option allows experienced staff to assist with commissioning and
eliminates technical issues during the initial operating period.
4.3 Guidance for selecting institutional issues that govern the ability to
award concessions and/or divest ownership.
O&M model adapted to local
context The main factors that drive the selection of the
The selection of the model that best fits an O&M model may also include the following:
individual facility (or fleet) depends on the
■ type of ownership
business objectives of the facility owner, who is
ultimately responsible for the safe and effective ■ technical, managerial, and financial capacity
performance of the hydropower facilities. It is of the owner
also strongly influenced by government policy, ■ the availability of local and skilled workforce
the regulatory environment, labor laws, and
54 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
STRENGTHS WEAKNESSES
1. Operator has incentives to meet or exceed technical and financial 1. Could result in higher overall cost than undertaking similar services
KPIs agreed to with the owner. in-house.
2. Model is likely to attract concessionary finance and donor interest. 2. Operators may require risk guarantees (for example to secure
3. Model reduces potential for government interference. offtakes).
4. Regulation by contract with respect to tariffs and operating 3. Often negative public impressions (foreign owned business).
agreements. 4. Political point of contention (sovereignty over natural resources or
5. Pre-agreed cost reflective tariff methodology, revenue security, and fear that private sector will outperform public sector).
no rate shocks. 5. May trigger organized labor resistance (public sector job loss).
6. Control of all of its own investments and the operating budget. 6. The financial sustainability of the project is reliant on the success
7. Training of local positions as much as possible to reduce expatriate and bankability of the off-taker and its ability to meet its payment
labor costs and associated expenses. obligations in a timely way.
8. Bonuses and penalties can incentivize operators and 7. Other future projects or concessions may encroach on the operating
concessionaires to perform. boundaries of the facility.
9. May result in quicker and greater improvements. 8. Few competent and experienced O&M contractors offer services in
developing countries.
10. Construction risks often assumed by the concessionaire.
9. Model weakens support from government and parastatal utility to
11. Operating and maintenance performance requirements can be
make significant changes.
jointly established and monitored by concessionaire, financiers, and
grantor. 10. Challenging to establish a fair contract due to diverging long-term
interests of owner versus short-term revenue maximization by
contracted operator.
11. Owner may progressively lose capacity to supervise contractors
and concessionaires and to discuss strategic responsibilities and
orientations, including CAPEX and investment strategies.
12. Difficulties to distribute financial responsibilities for major repairs,
refurbishment, and replacements.
■ the enabling environment (regulations, avail- to develop the required skills and knowledge
ability of skilled resources, institutional and in-house in the short to medium term. Short- to
contractual arrangements, etc.) medium-term technical assistance contracts can
■ the needs for major repair, refurbishment, or then be considered. If such support contracts are
replacement. deemed insufficient or not sustainable, consider-
ation should be given to use of Model 2 or 3 for
1. Type of ownership temporary or longer-term improvements.
Public entities may often want to remain in Private entities often have fewer constraints
Model 1, as they are often reluctant to outsource on outsourcing some or all responsibilities to
O&M because of lack of support from politicians, other private operators specializing in this field.
unions, and trade and professional organiza-
tions. The utility is also often expected to staff 2. Owner’s experience, capabilities,
such public services in traditional ways in order and knowledge
to provide and sustain local employment. Large
parastatals often report to government and are As assessed in the diagnosis in Step 1, the own-
therefore often governed by civil service employ- er’s experience and capabilities will be crucial to
ment norms, sometimes making it difficult to the selection of the model and to the definition
outsource services. In this case, an indepen- of levels of supports to be outsourced. It will
dent diagnosis needs to look closely at how best be easier to apply Model 1 when the owner is
13 http://jouleafrica.com/projects/bumbuna-phase-ii
56 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
FIGURE 4.3 | Influence of labor laws and employment restrictions on staffing plan
Evaluate employment
Develop organizational Review restrictions on Assess education
Process restrictions in contracts
structure and staffing employment of foreign quality, capability and
or concession
plan and assess costs and local labor skills of local labor
agreement
Organization
Adjust staffing Adjust staffing Design training
Outcome structure, staffing
plan and costs plan and costs program
plan, and labor cost
Public utility with a well-functioning and well- ■ Continue BAU (Model 1A)
managed fleet of hydropower facilities ■ Seek outside assistance in select areas requiring specialized skills or knowledge (Model 2)
Private entity and first-time concessionaire, or ■ Build internal capacity and seek support in selected areas (Model 2)
newly created government unit managing a single ■ Procure a full-service O&M contractor, at least initially, localizing employment over time
hydropower facility (Model 3)
Private, experienced concessionaire with a fleet of ■ Continue BAU (Model 1B)
hydropower facilities ■ Seek outside assistance in select areas requiring specialized skills or knowledge (Model 2)
O&M by
public
utility
O&M by O&M by
Yes Good fleet No
performing nonperforming
performance?
utility utility
No
Sustain or replicate
O&M for new facility Private sector
(Model 1) No allowed? Yes
No
58 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
O&M by
private owner
Review business
Experienced Assess local
Yes environment and
operator? capacity
labor laws
No
4.4 Structuring O&M services Africa and (ii) World Bank management services
sample prequalification15 and bidding docu-
and management contracts ments,16, 17 the following guidance is proposed
O&M contracts for hydropower facilities are sim- when considering Model 2 or 3:
ilar in many respects to other utility management
services contracts (MSCs). The terms of reference Service or management contracts?
(TOR), which defines the scope of services, varies
The use of management contracts can be a good
depending on the needs of the client. There are
strategic option when the owner is an:
not yet any standard contracts for hydropower
O&M services. However, examples of O&M ■ inexperienced, first-time concessionaire, or
contracts for other sectors can be accessed on the a newly created parastatal unit (managing a
World Bank’s website.14 single hydropower project implementation)
■ existing parastatal utility with a poor perfor-
MSCs are structured in a similar fashion to a
mance record of operating and maintaining
consulting services contract. They are usually
its fleet of hydropower facilities
issued for a fixed duration at a lump-sum price
with defined milestones and deliverables and ■ experienced hydropower concessionaire that
performance incentives. Expenses, including does not wish to be responsible for recruit-
consumables and spare parts, may be reimbursed ment, staff management, and operation of a
separately. particular facility.
60 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
WEIGHT IN
INDICATOR TARGET VALUE CALCULATION METHOD PENALTIES/BONUSES
(% OF TOTAL)
Overall availability factor 97% AF = (available hours/reporting period hours) × 100 20%
Transmission availability factor 98% AF = (available hours/reporting period hours) × 100 20%
Overall generation-forced outage rate 1% FOR = (FO hours/FO hours + service hours) × 100 10%
Transmission-forced outage rate 1% FOR = (FO hours/FO hours + service hours) × 100 10%
Budget performance variance ≤+5% Annually not more than 5 percent above approved budget 10%
Increase in store inventory value ≤+5% Annual increase of not more than 5 percent 5%
Accident frequency (per 100,000 hours worked) 1 1 lost-time injury per 100,000 hours worked 15%
Accident severity (per 100,000 hours worked) 10 10 lost-time days per 100,000 hours worked 10%
62 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Is the selection of the model to be used for the O&M strategy. This will be a choice from Models 1,
2, or 3, along with their options and variants. A list of contracts/operators envisaged to be mobi-
lized will also be provided, including description of key responsibilities and strategic terms of the
proposed contracts (time-based, lump-sum, performance based, bonuses/penalties, etc.).
Corporate resources
Legal
Corporate Administration
generation Human resources
management Procurement
Public relations
Finance/Accounting/Payroll
Environmental monitoring
Other
generation
O&M functions of multiple plants located near responsibility for the planning, justification,
one another, such as facilities in a cascade on and execution of major maintenance and
a river system. The organization chart demon- capital projects.
strates centralization of many corporate func- 2. Performance monitoring: This corpo-
tions that support hydropower O&M activities, rate function is responsible for monitoring
such as human resource administration, finance, the performance of various utility measures,
procurement, legal, regulatory, ICT, security, and including hydropower performance. Per-
transportation. formance monitoring requires hydrological
expertise to ensure that water resources for
As well as the central administrative function, all hydropower facilities are managed in the
support services that are usually provided at the most efficient manner possible.
corporate level to all facilities in a fleet include
3. Dam safety and civil engineering: This
the following:
function is generally separate from other
1. Maintenance engineering: This corporate support services. It is responsible for dam
function assists site and fleet personnel with safety programs and formal monitoring and
the design and monitoring of maintenance inspection of all civil structures, with a focus
programs and provides engineering services on water containment structures. This group
to solve O&M problems. In some organi- works closely with civil maintenance staff at
zations, this group may also be assigned each site.
66 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Community
Site manager relations
Control
Protection Mechanical
Communications maintenance
maintenance
Civil structures
Hydromechanical
maintenance
68 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Classic job titles, profiles, and associated tasks As an example of extremely low staffing, the fully
and requirements are provided in Appendixes D automated and remotely controlled 100 MW
and E. The owner may use these tables as check- Glendoe HEP in Scotland, owned and operated
lists that could provide guidance or feed job by SSE, does not have any full-time employees
descriptions for recruiting key positions that are on-site. The facility is inspected by a roving team
not yet staffed. They can also use them to update of technicians who also cover other hydro facil-
job descriptions for staff already employed. ities in the vicinity. Monitoring and operation
is carried out from a centralized control facility,
where 80 stations with 125 generating units are
5.2 Staffing levels operated by fewer than 20 staff, who provide
The number of staff required to operate a hydro- continuous round-the-clock coverage. Hence the
power facility is largely dependent on the size O&M at Glendoe is covered by the equivalent of a
and number of facilities and degree of automa- handful of staff.
tion, and is also affected by the nature and loca-
tion of the facility and the owner’s approach to This contrasts with 1,330 MW Kainji and Jebba
staffing. Each facility and location are individual, HEP in Nigeria, which, prior to privatization,
and staffing requirements vary widely as illus- employed 450 managers and staff for O&M. Fol-
trated by the case studies. lowing privatization, this number was reduced to
159 staff.
In addition to the six main factors previously
described, the following factors are also among An indication of staffing levels and structures
those driving staffing requirements: for well-run hydropower facilities is provided
in the case studies summarized in Table 5.1 and
■ National capabilities: lack of local capa- in the final chapter of this report. More detailed
bility means expensive expatriates are descriptions of the case studies can be found
required. in the companion report titled Operation and
■ Corporate capabilities: owner/operator Maintenance Strategies for Hydropower—Six
may not have skills and systems for efficient Case Studies.
working.
350
300
It can be seen from these examples that there the Kafue Gorge Regional Training Centre in Zam-
is a wide range of staffing levels, even for effi- bia offer training in O&M of hydropower facilities.
ciently run facilities. Plotting the number of staff
against installed capacity (Figure 5.3) based on Appendixes D and E provide recommendations
these case studies suggests a tentative correlation for the education and skills required to be con-
between the size of a facility (or fleet) and the sidered for key O&M positions. Table 5.2 gives an
number of staff required to operate it. illustration of these requirements for an electri-
cal engineer and a technician.
However, the plot in Figure 5.3 should be used
with caution, since it is only based on six case In developing countries, it is common practice to
studies and since the number of staff required consider technicians or engineers to be qualified
is driven by many other factors as previously upon completion of the academic portion of their
discussed. It can tentatively be used as a guide training (diploma or degree). In most countries,
to the requirements for an efficiently operated there are no formal practical training require-
facility where most services are provided on-site, ments after graduation. Formulation of the
and the plant is operated locally without support staffing plan requires (i) close examination of the
from a centralized team. quality of education in the country, (ii) appropri-
ate adjustments to ensure that adequate time and
operating funds are allocated to education and
5.3 Education and training training, and (iii) that additional costs of import-
Training requirements ing talent during training periods are included in
the budget.
To be sustainable, an O&M strategy requires the
continuous development of human resources to
Hydropower-specific training
competently carry out O&M functions for the
duration of operations. High-quality, secondary For new hydropower developments, training
education and technical colleges are needed to should be planned before construction starts
produce competent technicians, and accredited and implementation should begin during the
universities are needed to provide the bachelor- construction phase, at least one or two years
level education required for professional before commissioning starts. A common model
positions. used when adding a new plant to a fleet is to
select staff with the right credentials within the
Organizations such as the National Power Train- existing organization and to ensure that they
ing Institute of the Indian Ministry of Power, or participate in training programs run by the
70 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
ADDITIONAL SITE-
SECONDARY POST-SECONDARY ON-THE-JOB
POSITION SPECIFIC ON-THE- QUALIFICATION
EDUCATION EDUCATION TRAINING
JOB TRAINING
Grade 12 matriculation University B. Sc.
Electrical or Receives professional
with acceptable in electrical or Engineer-in-training,
mechanical engineer status after
standing in math, mechanical 3 years
engineer 7 years
physics, and English engineering, 4 years
Electrical or
Grade 12 matriculation Technical college
Electrical or mechanical technician Receives restricted
with acceptable diploma in electrical Qualified technician
mechanical training program status as technician-
standing in math, and mechanical status after 7 years
technician practical and in-training, 1 year
physics, and English technology, 2 years
academic, 4 years
original equipment manufacturer (OEM) and are ■ the existence of other hydropower facilities in
involved in the installation and commissioning the country and their O&M performance
of the plant that they will eventually operate and ■ the experience of recruits and the relevance
maintain. In addition, local engineers should be of this experience to the tasks associated with
taken on by the owner or the project implemen- hydropower O&M
tation unit for training throughout both the proj- ■ the experience of the facility owner and/or
ect design and construction phase. This type of service providers.
training generally works well for a well-function-
ing utility with staff possessing the required skill Partnering with universities, other utilities
sets to make full use of the practical training. It is (Box 1), and specialized training institutes can
more challenging for a poorly functioning utility. also be part of the strategy for finding and train-
ing staff. International platforms, such as the one
When preparing human resource plans (including provided by the International Center for Hydro-
plans for staffing and training), the owner should power (ICH), can also build and strengthen
take the following factors into consideration: capacity.18
■ the availability of educational opportunities
BOX 1 | Example of partnership between utilities
■ the quality of secondary and post-secondary
education of available staff
For a year before commissioning, staff of the 76 MW Muela hydro-
■ the quality of the country’s educational power plant in Lesotho were given hands-on training in Ireland at an
institutions ESBI hydropower plant. After commissioning and manufacturers’ train-
ing, they were supported by an operations management specialist
■ the authenticity of educational
from Manitoba Hydro International for another five years of operations.
documentation
Is the organization and staffing structure (including job titles and organograms) required for
implementation of the O&M strategy. The staff numbers, grades, qualifications, and status (expa-
triate or local) are used in Step 6 for preparation of O&M budgets.
18 http://www.ich.no/detalj/courses/3579
74 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
The planned maintenance and inspection costs The cost of utilities includes the costs of water,
will vary from year to year and may have a cycli- sewerage, and telecoms services provided by
cal pattern. Thus, a five-year or long-term budget external organizations. It may also include the
should help to cover this cyclical pattern. For cost of electricity purchased from the grid when
budgeting of a new facility, an average cost over the facilities are not generating, or at locations
the life of the facility may be sufficient as it will supplied from the grid rather than tapped off
cover the variability of these costs on an annual before the export meter.
basis.
Environmental and social costs
Equipment and vehicle costs
Any costs for environmental or social obliga-
O&M equipment costs to be covered in the OPEX tions, such as monitoring, catchment manage-
budget include: ment, livelihood restoration, or maintenance of
resettlement villages, need to be included in the
■ major maintenance and testing equipment budget. These costs are specific to individual
■ hand tools facilities, and require a bespoke estimate based
■ office equipment (computers, printers, tele- on the results of the environmental and social
coms, portable devices, furniture, etc.) impact assessment (ESIA) and other studies.
■ personal safety equipment, including radios,
O&M camp
satellite phones, and venting equipment
■ workshop equipment (compressors, welding The costs associated with provision of accom-
sets, etc.). modation can vary from zero, in the case where
there is adequate accommodation nearby, to
The cost of this equipment needs to include pro-
a very substantial cost in remote locations. In
vision for consumables and any service fees (such
addition to the cost of houses, costs may include
as for mobile or satellite phones).
the provision of water, drainage and sewerage,
security, education, medical and leisure facilities,
The cost of operating and maintaining vehicles
and other facilities and services needed to run a
used for O&M should also be budgeted. O&M
small village.
vehicles usually include vehicles for personal
76 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
For new-build projects, it is assumed that these For stations with multiple units, it is common
components will require major refurbishment to budget for major refurbishment of one unit
or replacement at or near the end of their useful per year. This allows the costs to be staggered
and makes optimum use of low-flow seasons
to enable work to be carried out with minimal
energy loss.
TABLE 6.1 | Average life expectancy of plant parts
and systems
Figure 6.1 shows a 100-year CAPEX program
EXPECTED designed for a 35 MW low-head hydropower
PLANT PART OR SYSTEM
LIFE (YEARS) facility in Canada, commissioned in 2016 with
Penstocks, gates, stop logs, trash racks 50–100 an initial investment of Can$150 million and
Main generation equipment: turbine equipment other a project life of 50 years. The CAPEX program
than runners, generator, motor; governor, excitation 30–40
system, and main inlet valves
budgeted for the first 50 years is Can$44 mil-
lion (about 29 percent of initial investment
Turbine runners Variable
Kaplan turbine 30–60 costs), with most of the funds being spent at the
Pelton turbine 40–70 end of the project life to refurbish for the next
Francis turbine 25–40 50 years. It is interesting to note that it rep-
Power transformers 40 resents around one-third of the total scheme’s
High-voltage switchgear and switchyard equipment 40 investment (which is typically the cost of the
Medium-voltage switchgear 30 electromechanical equipment of a hydropower
Low-voltage switchgear 30 scheme—the other two-thirds being civil works).
Plant auxiliary mechanical and electrical equipment
(drainage and dewatering pumps, cooling system, CAPEX estimate for existing facilities
compressed air system, ventilation and air 30
conditioning system, AC/DC power supply, emergency For existing facilities, the CAPEX program will be
diesel generator, etc.)
based on the condition assessment undertaken
Seals, bushes, small fasteners, small valves, water
15–20 in Step 1. The works will prioritize activities that
strainer
rapidly deliver benefits, taking account of the
Electronic devices and cards/controls, control
and protection system, remote control, SCADA, 20, 15, or less financial capacity of the owner. Ideally, a full
communication equipment, metering feasibility study with cost-benefit analysis would
Painted surfaces 3–5 be undertaken to define and optimize the CAPEX
Source: Adapted from IFC (2016).
program. This is unlikely to be carried out during
14,000
12,000
10,000
CAPEX/MM [$K]
8,000
6,000
4,000
2,000
0
2018
2021
2024
2027
2030
2033
2036
2039
2042
2045
2048
2051
2054
2057
2060
2063
2066
2069
2072
2075
2078
2081
2084
2087
2090
2093
2096
2099
2102
2105
2108
2111
2114
2117
Combined total Civil Electrical Mechanical Long term civil/mechanical
the selection of the O&M strategy, but at least a facilities. OPEX can be estimated by applying the
preliminary study should be carried out at this IRENA percentages to these construction costs.
stage. At a minimum, it should include a high- Based on an initial capital cost for a medium-size
level cost estimate based on an assumed schedule hydropower facility in Africa estimated at $2,500/
of refurbishment or replacement of life-expired kW, a 50 MW facility would cost an estimated
equipment, using percentages of estimated new $125 million to build, with estimated annual OPEX
costs for the respective equipment. in the range of $1.25–5 million, according to IRENA.
Figures 6.2 and 6.3 show the total specific construc- Using INEEL’s equation, a 50 MW hydro site
tion cost ($/kW) of large and small hydropower would have estimated OPEX in 2018 of around
78 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Africa Brazil Central China Eurasia Europe India Middle North Oceania Other Other
America East America Asia South
and the America
Caribbean
2018 USD/kW
Capacity MW ≤ ≥
Source: © IRENA (2019). Used with permission from IRENA. Further permission required for reuse.
Note: Large hydropower projects in this figure are all those with capacity greater than 10 MW.
$1.5 million. This figure is at the low end of the replacement cost) has its limitations, especially
range based on IRENA’s benchmarking method. It where local circumstances or the nature of the
seems likely that IRENA has included major main- facility results in unusually high or low CAPEX.
tenance and refurbishment costs in its estimates, This is illustrated in Case Study 2 for Mount
accounting for the difference between INEEL and Coffee, where the reconstruction cost per MW is
IRENA benchmarking methods. It is therefore rec- nearly double what might be expected elsewhere
ommended that IRENA’s benchmarking approach, for a new project. However, the same factors,
or the 1.5 percent to 2 percent of capital cost used by including lack of skills among the local work-
consultants, is used to benchmark the OPEX cost. force, also results in a high O&M cost.
In the case studies summarized in the final chap- Another indicator for benchmarking O&M costs
ter of this report and detailed in the companion is to consider the cost per kW/year, and the cost
report Operation and Maintenance Strategies per kWh of energy generated. These indicators
for Hydropower—Case Studies, a wide range of are presented in Table 6.2 for the case studies.
budgets is illustrated, from less than 0.5 per- The case studies are also summarized in the final
cent to around 1.5 percent of CAPEX investment chapter of this report and presented in more detail
value. This shows that O&M costs are dictated in the companion report Operation and Mainte-
by the particular circumstances of each facility, nance Strategies for Hydropower—Case Studies.
including its location and the availability of suit-
ably skilled local personnel to staff the facility. Table 6.2 illustrates some of the difficulties in
The use of percentage of construction CAPEX (or comparing O&M costs. Companies have their
Africa Brazil Central China Eurasia Europe India Oceania Other Asia Other South
America America
and the
Caribbean
2018 USD/kW
Capacity MWe ≤
Source: © IRENA (2019). Used with permission from IRENA. Further permission required for reuse.
Note: Small hydropower projects in this figure are all those with capacity less than or equal to 10 MW.
TABLE 6.2 | O&M cost per unit of capacity and energy of case study facilities
own methodologies for allocating costs to CAPEX The benchmarking approach from IRENA or
and OPEX, and in some cases, the costs of cen- the consultant’s typical 1.5 percent to 2 percent
tralized services and insurances are not included. of capital cost may be used at the pre-feasibility
For example, in the case of Kainji and Jebba stage, but for more detailed assessment a
(CS3), it is unlikely that the full O&M cost is “bottom-up” approach, as described in sec-
included in the cost shown. tion 6.2, is appropriate.
80 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Are the cost estimates of OPEX and CAPEX planned under the proposed O&M strategy? These cost
schedules will be used in the cost-benefit analysis to validate the strategy and check whether the
proposed strategy is sustainable and bankable.
84 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Will be collation of the inputs and validation of the O&M strategy, including cost-benefit analysis
and identification of funding sources for the investments required.
FIGURE 8.1 | Typical annual planning process to implement the O&M strategy
Vision Statement
O&M
strategy
Validate
Stakeholder
Progress consultation Five-year Five-year
Reports
reporting and OP operating and
input CAPEX plan
One-year
OP
Annual operating
plan and budget
88 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
19 For this purpose, a RACI responsibility matrix could be developed as mentioned at the end of Step 3.
performance in carrying out the services in sufficient length of record, they can be compared
compliance with his obligations under the O&M with the targets in the strategy and with industry
contract. Later, when the KPIs are based on norms.
Include the documentation required for implementation of the O&M strategy. The documents
include the supporting contracts and agreements, the five-year capital program, the annual oper-
ating plan, and the monitoring plan, including the KPIs that will be measured and included in
regular reports.
90 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
CASE INSTALLED
COUNTRY NAME MODEL KEY FEATURES
STUDY CAPACITY—MW
1 Brazil Statkraft’s Assets 180 MW (six facilities) 1 O&M taken in-house and Statkraft’s systems adopted
Interim measure while staff are trained to implement
2 Liberia Mount Coffee 88 MW 3
Model 1
Most O&M activities by the owner, but some specialist
3 Nigeria Kainji and Jebba 1,338 MW (two facilities) 2
activities outsourced
Notionally Model 3, but outsourced O&M is now
New Bong Escape
4 Pakistan 84 MW 3 undertaken by a subsidiary of the owner, so similarities
hydropower project
to Model 1B
5 Uganda Nalubaale and Kiira 380 MW (two facilities) 3 Fully outsourced concession
6 Uruguay/Argentina Salto Grande 1,890 MW 1 O&M by the in-house team
SKER’s O&M strategies focus on operating on The Weighted Maintenance Object20 (WMO)
a commercial basis with profitability as a key benchmarking model, developed by Statkraft
objective, ensuring that health, safety, and and PA consulting in 1989, was applied in South
human rights of employees are valued and America and Asia over the last decade, improving
protected. the performance of their assets. The model rates
hydropower assets based on technical and OPEX-
The occupational health and safety system is CAPEX expenditures from high cost to low cost,
aligned with the guidelines in OHSAS 18001 and to improve efficiency and reduce operating costs.
ISO 14001 or equivalent national standards and Guidance from the WMO method reduced the
regulations. Efficient use and development of yearly OPEX by 3.7 Million USD, representing a
expertise and continuous improvement processes 40 percent reduction of the annual O&M bud-
underscore SKER’s O&M program. get across all six facilities. SKER’s facilities are
among the most efficient of Statkraft’s assets,
The in-house human resource planning process when compared using the WMO benchmarking
deployed within SKER evaluates workers from system.
a technical perspective and potential for career
progression in the Statkraft Group. To optimize Challenges faced by SKER in the coming decades
O&M staffing, a maintenance optimization pro- include managing O&M costs to ensure cost com-
cess was implemented, based on the TSW O&M petitiveness, further applying Statkraft corporate
model, resulting in a significant reduction in the contract and business models, and the need to
maintenance workload. adopt digitalization solutions for revenue opti-
mization and cost reduction through automation
The financial resources allocated annually to the and smarter O&M.
company’s O&M program are primarily based on
the corporate energy management plan, which
in turn is defined largely by basin hydrology and 9.2 Mount Coffee
market conditions. Once the financial resources Hydropower Project, Liberia
are allocated, an annual energy production fore-
The Mount Coffee hydropower project in Liberia
cast is prepared. Thereafter, the O&M work plan
has been fully restored, with a new four-unit,
is prepared, based on the condition of assets and
88 MW powerhouse coming online between
a risk and vulnerability assessment that includes
20 Technical infrastructure complexity is reflected in the WMO number. To compare companies with significantly different technical infrastruc-
ture, there was a need to normalize the comparison. Comparing technical infrastructure and related costs enables benchmarking of execution
and effectiveness within different regions.
94 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
96 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
98 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Concession: a public-private partnership (PPP) arrangement in which the private and public sectors share
risk. Normally a long-term arrangement of at least 20 years is granted by the government to a special-purpose
or private company, in which the government or parastatal utility may or may not be a shareholder. The
concessionaire is granted ownership rights and responsibility for implementing, operating, and maintaining
the facility for the concession period. The operator is free to operate and maintain the facility to obtain the
desired/agreed return on investment within the constraints of the concession agreements, which details legal,
employment, environmental, and social obligations. The concessionaire can also be asked to rehabilitate and
refurbish some equipment, which turns the concession into a rehabilitate, operate, and transfer (ROT) model.
A concession agreement should also detail the expected status of the plant at the end of the concession.
Condition-based maintenance: is based on the results of inspections, alarms, and the monitoring
and analysis of the behavior of equipment and structures during normal operation. Where degradation
of equipment is likely to lead to failure or inefficient generation, maintenance, repair, and refurbish-
ment measures are deployed.
Corrective maintenance: is carried out after a breakdown for the purpose of restoring an asset to a
condition in which it can perform the required function.
Failure modes: include security, dam, environmental, regulatory, and economic failure modes.
Hydropower O&M: refers to all activities needed to run and maintain good physical and operational
statuses of hydropower facilities (excluding replacement or construction of new facilities). It usually
includes the rehabilitation of existing components and maintenance overhauls.
Independent power producer (IPP): a nonpublic, nonutility generator that owns facilities to gen-
erate electric power for sale to utilities and end users. The IPPs sell power to utilities under long-term
feed-in tariffs or power-purchase agreements (PPAs).
Appendixes | 101
Major maintenance: planned rehabilitation interventions to perform detailed inspections and or repairs
to refurbish the equipment and extend its operating life. Major maintenance costs can either be part of the
OPEX or CAPEX budgets based on the accounting principles of the owner, and the magnitude of the works.
O&M management contract: an agreement between the owner and the operator to provide partial
or full outsourced O&M services. O&M management services contracts are structured in a similar fash-
ion to consulting services contracts and are usually issued on the basis of a fixed duration, lump-sum
price (in terms of management fees) with milestones and deliverables (sometimes paid for separately),
and performance incentives usually calculated on an annual basis.
O&M strategic-model options: include Model 1 (owner retains sole responsibility of O&M), Model 2
(partial outsourcing of O&M by the owner), and Model 3 (full outsource of O&M to an independent
contractor).
O&M strategy: an informed set of high-level information and decisions toward sustainable O&M of
hydropower facilities, including (i) objectives to be reached, (ii) activities and organizational decisions
to reach these objectives, and (iii) adequate resources (human, financial, etc.). An O&M strategy is
based on (i) a diagnosis of existing situation and stakeholders and (ii) risk assessment and targets to
eliminate barriers and provide an enabling environment for success.
Operating plan: provides organization personnel with a detailed program of the tasks and responsi-
bilities in line with the goals and objectives within the O&M strategy. It is a management tool that facili-
tates the coordination of the organizational resources (human, financial, and physical) so that goals and
objectives in the O&M strategy can be achieved.
Operation expenditures (OPEX): covers the routine O&M costs for day-to-day facility operations
and maintenance. OPEX costs are budgeted on an annual basis with a five-year forecast. OPEX are
expensed in the corporate income statement.
Planned-interval maintenance: are carried out on a time schedule or triggered in accordance with
an equipment usage schedule. This has been the traditional approach to maintenance and is included in
O&M plans produced during the commissioning of projects.
Power purchase agreement (PPA): a contract between two parties: one that generates electricity (the
seller) and one that looks to purchase electricity (the buyer). The PPA defines all commercial terms for
the sale of electricity between the two parties, including (i) when the project will begin commercial opera-
tion, (ii) the schedule for delivery of electricity, and (iii) penalties for under delivery, payment terms, and
102 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Predictive maintenance: makes use of condition-based monitoring of data and trending analysis to
predict the likelihood and timing of potential failures. Failure prediction uses condition assessment data
and test results obtained during outages as well as continuously collected monitoring data. Modern plants
employ online and real-time monitoring of equipment, systems, and civil structures (movement, leakage)
to provide data which are used to plan and continually fine-tune the preventative maintenance program.
Root-cause analysis (RCA): the process of drilling down to determine the actual cause of failures or
poor performance. RCA goes hand in hand with RCM to improve reliability of equipment and reduce
maintenance costs.
Work order: authorization of maintenance, repair, or operations work to be completed. Work orders
can be manually generated through a work request submitted by a staff member or automatically gen-
erated through a work order management software or preventive maintenance (PM) schedule. Work
orders can also be generated via follow-ups to inspections or audits.
Appendixes | 103
104 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Appendixes | 105
TABLE C.1 | Typical hydropower O&M organization chart at the facility level
106 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
2/5/20 2:06 PM
CORE FOR LARGE (L), EXPERIENCE TO
ACADEMIC PRACTICAL
MEDIUM (M), BE CONSIDERED
CADRE MAIN FIELDS OF EXPERTISE MAIN TASK(S) EDUCATION TRAINING
SMALL (S) QUALIFIED
(SEE NOTE 3) (YEARS)
(SEE NOTE 1) (YEARS)
Day-to-day management of local
Site Administration (if Finance, procurement, human resources L and M finances, human resource management, Business
3 10
applicable) generalist (see Note 8) and procurement and inventory diploma
management stores functions
Appendixes | 107
2/5/20 2:06 PM
TABLE C.2 | Typical hydropower O&M support organization chart at the corporate level
108 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
2/5/20 2:06 PM
Appendix D: Key O&M job descriptions
The following job descriptions are described below as job profile sheets.
POSITION
1. Plant Manager
2. Chief Operations Engineer
3. Shift Supervisor
4. Operator (plant and substation)
5. Chief Maintenance Engineer
6. Electrical Engineer
7. Protection & Controls Technician
8. Electrical Technician
9. Substation/High Voltage Technician
10. Mechanical Engineer
11. Mechanical Technician
12. Maintenance Planner and Outage Coordinator
13. Civil Engineer
14. Civil Technologist
15. General Maintenance Tradesman
16. Financial and Administration Manager
17. Community/CSR and Public Safety Officer
18. Environment and Social Compliance Officer
19. Workplace Safety and Health Officer
20 Human Resources Officer
21. Human Resources Assistant
22. Senior Accountant
23. Junior Accountant
24. Procurement Officer
25. Storekeeper
26. Townsites (colonies) Administrator
Appendixes | 109
■ Accountable for the ongoing preparation of capital and operating budgets and approving and controlling
■ Ensure that the generation station meets all safety and environmental requirements, regulatory requirements,
licensing requirements, and other requirements defined by the organization;
■ Produce weekly/monthly project progress reports for Managing Director, Board of Directors (BOD) and other
stakeholders;
■ Participate in BOD, Steering Committee, and other meetings as directed by the Managing Director to represent the
interests of the XYZ;
■ Perform other duties and responsibilities as assigned.
■ University degree in electrical, mechanical, or civil engineering. A Master in Business Administration would be
an asset. Must have 20 years related to the management of hydropower assets. An equivalent combination of
education and experience will also be considered;
■ Demonstrated managerial and leadership skills combined with excellent interpersonal skills and a proven track
Qualifications and experience record as a team player are essential;
requirements
■ Possesses good working knowledge of plant management processes and practices and has the ability to take a
leadership role in resolving related technical issues;
■ Demonstrated skills and experience in resolving complex and sensitive issues courteously and discretely,
consistent with operating principles.
110 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Implement and monitor the safety management system within the operating group;
■ May be required to assume the authority of other supervisors during their absences;
Responsibilities and duties ■ Recommend the selection, hiring, salary treatment, progression, termination, and discipline of subordinates;
■ Prepare and maintain shift schedules to ensure adequate staffing on each shift;
■ Ensure that practices in his/her areas of responsibility comply with corporate and regulatory environmental
requirements;
■ Ensure that direct reports are adequately informed and trained in environmental and regulatory requirements;
■ Train, motivate, and direct employees to their maximum potential with regard to their well-being (job satisfaction,
safety, morale, etc.);
■ Lead the team in achieving the business objectives, monitoring, and reporting on progress on an ongoing basis.
■ University degree in electrical, mechanical, or civil engineering and 15+ years of experience related to the
operations of a similar-size hydropower project. An equivalent combination of education and experience will also
be considered;
■ Demonstrated commitment to safety, occupational health, and the environment is required;
■ Demonstrated managerial and leadership skills combined with excellent interpersonal skills and a proven track
Qualifications and skills
record as a team player are essential;
■ Possess good working knowledge of plant operations processes and practices and have the ability to take a
leadership role in resolving related operational issues;
■ Demonstrated ability and experience in resolving complex and sensitive issues courteously and discretely,
consistent with best operating principles.
Appendixes | 111
■ Communicate with control centers of three interconnected utilities and follow dispatching procedures;
■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ Ability to organize, supervise, and schedule work and provide training, leadership, and direction to other staff;
■ Possess above average computer skills sufficient to perform the various tasks of the position (MS Word, MS Excel,
Qualifications and skills
and MS Project);
■ Possess sound judgment, decision-making ability, and the ability to perform assignments with minimum
supervision;
■ Possess an excellent working knowledge of budget preparation and control, cost accounting, stores, and stock
control;
■ Creative and able to evaluate and develop work methods and practices;
■ Familiar with and adhering to the corporate safety manual and other approved safety practices and procedures.
112 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Communicate with control centers of three interconnected utilities and follow dispatching procedures;
■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Participate in lockout/tagout to isolate machinery for inspections and maintenance; Issue work permits for
maintenance, replacement, or repair of equipment;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ Possess above average computer skills sufficient to perform the various tasks of the position (MS Word, MS Excel,
and MS Project);
■ Possess sound judgment, decision-making ability, and the ability to perform assignments with minimum
supervision;
■ Familiar with and adhere to the corporate safety manual and other approved safety practices and procedures.
Appendixes | 113
■ Institutionalize organized maintenance management processes and procedures by applying and driving facility-
wide focus in identifying, planning, scheduling, and executing work;
■ Evaluate and benchmark (gap analysis) existing plant procedures/practices/performance measures versus internal
and external industry-specific benchmarks;
■ Work with peers to define roles and responsibilities to ensure the success of maintenance management programs;
■ Lead maintenance improvement initiatives identified through failure root cause analysis and/or compliance,
growth, or cost reduction requirements;
■ Develop detailed planning to control departmental elements, including spending, staffing, etc.;
■ Liaise with purchasing to identify and negotiate the purchase of needed components, equipment, and contract
services;
■ Ensure all maintenance objectives are completed on time and within budget/forecast;
■ Assess and document success/failure of completed work orders, creating feedback to further drive effective work
Responsibilities and duties order execution;
■ Recommend the selection, hiring, salary treatment, progression, termination, and discipline of subordinates;
■ Ensure that practices in his/her areas of responsibility comply with corporate and regulatory environmental
requirements;
■ Ensure that direct reports are adequately informed and trained in environmental and regulatory requirements.;
■ Establish preventive and predictive maintenance tasks, including oil analysis, vibration monitoring, thermographic
analysis, ultrasonic detection, sound analysis, and frequencies for crucial process and support equipment;
■ Conduct root cause failure analysis on chronic maintenance and repair issues and initiate corrective actions to
equipment design and/or work practices;
■ Establish programs for and maintain mechanical, instrumentation, electrical, regulatory, and civil equipment
integrity plan which aligns long-range strategic planning, turnaround activity (shutdowns), preventative
maintenance activity, and predictive maintenance activity;
■ Train, motivate, and direct employees to their maximum potential with regard to their personal well-being (job
satisfaction, safety, morale, etc.);
■ Lead the team in achieving the business objectives, monitoring and reporting on progress on an ongoing basis.
■ University degree in electrical, mechanical, or civil engineering and 15+ years of experience related to the
maintenance of a power plant or sophisticated industrial facility (preferably a hydropower plant). An equivalent
combination of education and experience will also be considered;
■ Demonstrated commitment to safety, occupational health, and the environment is required;
■ Demonstrated managerial and leadership skills combined with excellent interpersonal skills and a proven track
Qualifications and skills
record as a team player are essential;
■ Possess good working knowledge of plant operations processes and practices and have the ability to take a
leadership role in resolving related operational issues;
■ Demonstrated skills and experience in solving complex and sensitive matters courteously and discretely, consistent
with best operating principles.
114 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Prepare engineering reports, capital project justifications, special maintenance work order reports, and initiate
purchases;
■ Investigate and evaluate equipment and parts and recommend changes to improve efficiency;
■ In cooperation with plant staff, develop and update maintenance standards and procedures for electrical
equipment;
■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ Graduate degree in electrical engineering from a university of recognized standing and a minimum of 15 years
related experience, which includes a minimum of four years field experience directly related to the operation/
maintenance or design and/or construction, commissioning of electrical equipment in hydropower generating
stations including control systems;
■ Demonstrated ability to organize, schedule, and coordinate work, and to provide training to other staff;
■ Broad technical background pertaining to power equipment and auxiliaries in hydropower generating stations to
■ Ability to deal with personnel at all levels with diplomacy, inside and outside the corporation;
■ Working knowledge of PLC/HMI systems as applied to hydro generating stations, including related troubleshooting
and support processes;
■ Functional knowledge of AutoCAD, Microsoft Office, etc.
Appendixes | 115
■ Investigate, analyze, and report on power quality problems, including harmonic and transient analyses, voltage
profiles, etc.;
■ Perform initial inspection checks to ensure that newly installed equipment is ready to be placed in service;
Responsibilities and duties ■ Assist in the development of maintenance procedures and be responsible for the execution of the same;
■ Analyze HMI/SCADA and protection relays datasets for troubleshooting, regular inspections, and training purposes;
■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Participate and perform lockout/tagout to isolate machinery for inspections and maintenance;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ A diploma related to electrical technology with a specialization in protection and control systems from an institute
of recognized standing and or completion of training program leading to the designation of Protection and Controls
Technician;
■ Minimum of eight years of experience working as a Protection and Controls Technician in a utility or in the private
sector and experience with substations, generating equipment, and complex industrial systems;
■ Apprentice: Minimum of four years of experience working as a Protection and Controls Technician in a utility or
private sector and experience with substations, generating equipment, and sophisticated industrial systems;
■ Must be prepared to undertake further development of technical or leadership skills through participation in
internal and external training and development;
Qualifications and skills
■ Thorough knowledge of the use and care of all instruments and test equipment;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions;
■ Good knowledge of station and operation, particularly modern control systems requiring high diagnostic skills
and ability to read schematic drawings and blueprints;
■ Knowledge of scheduling and planning techniques, budgetary controls, functional cost accounting;
116 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Assist in the development of maintenance procedures and be responsible for the execution of the same;
Responsibilities and duties ■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Participate and perform lockout/tagout to isolate machinery for inspections and maintenance;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ A diploma in electrical technology from an institute of recognized standing and or completion of training program
leading to the designation of Journeyman Electrical Technician;
■ Minimum of eight years of experience working as an Electrical Technician in a utility or in the private sector and
experience with substation, generating equipment, and or complex industrial systems;
■ Apprentice: Minimum of four years of experience working as an Electrical Technician in utility or private sector and
experience with substation, generating equipment, and or complex industrial systems;
■ Must be prepared to undertake further development of technical or leadership skills through participation in
Qualifications and skills internal and external training and development;
■ Thorough knowledge of the use and care of all instruments and test equipment;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions;
■ Knowledge of scheduling and planning techniques, budgetary controls, functional cost accounting;
Appendixes | 117
■ Assist in the development of maintenance procedures and be responsible for the execution of the same;
Responsibilities and duties ■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Participate and perform lockout/tagout to isolate equipment for inspections and maintenance;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ A diploma in electrical technology from an institute of recognized standing and or completion of training program
leading to the designation of Journeyman High Voltage Electrical Technician;
■ Minimum of eight years of experience working as a High Voltage Electrical Technician in utility or private sector and
experience with substation, generating equipment, and or complex industrial systems;
■ Apprentice: Minimum of four years of experience working as a High Voltage Electrical Technician in utility or private
sector and experience with substation, generating equipment, and or complex industrial systems;
■ Must be prepared to undertake further development of technical or leadership skills through participation in
Qualifications and skills internal and external training and development;
■ Thorough knowledge of the use and care of all instruments and test equipment;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions;
■ Knowledge of scheduling and planning techniques, budgetary controls, functional cost accounting;
118 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Prepare engineering reports, capital project justifications, special maintenance work order reports, specifications,
and initiate purchases;
■ Investigate and evaluate equipment and parts and recommend changes to improve efficiency;
■ In cooperation with plant staff, develop and update maintenance standards and procedures for mechanical
equipment and auxiliaries;
■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ Graduate from a mechanical engineering program from a university of recognized standing with a minimum of 15
years progressive technical experience, including four (4) years supervisory experience of engineers and technical
support personnel in hydropower plants;
■ Demonstrated ability to organize, schedule, and coordinate work, and to provide training to other staff;
■ Broad professional background pertaining to power equipment and auxiliaries in hydropower generating stations
to carry out the duties of the position;
■ Familiarity with Kaplan turbines and associated equipment is an asset;
Qualifications and skills
■ Membership in Professional Engineering Organization;
■ Must have the ability to deal with other personnel with diplomacy in the roles of supervisor and coordinator;
■ Must have mature judgment and the ability to accept and complete assignments given by objective and schedule;
Appendixes | 119
■ Assist in the development of maintenance procedures and be responsible for the execution of the same;
Responsibilities and duties
■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Participate and perform lockout/tagout to isolate machinery for inspections and maintenance;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ A diploma in mechanical technology from an institute of recognized standing and or completion of training
program leading to the designation of Mechanical Technician/Millwright;
■ Minimum of eight years of experience working as a Mechanical Technician in utility or private sector and
experience with hydropower generating equipment, and or complex industrial systems;
■ Apprentice: Minimum of four years of experience working as a Mechanical Technician in utility or private sector
and experience with hydropower generating equipment, and or complex industrial systems;
■ Familiarity with Kaplan turbines and associated equipment is an asset;
■ Must be prepared to undertake further development of technical or leadership skills through participation in
Qualifications and skills
internal and external training and development;
■ Thorough knowledge of the use and care of all instruments and test equipment;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions;
■ Knowledge of scheduling and planning techniques, budgetary controls, functional cost accounting;
120 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Achieve close working relationships with plant management and station personnel including external crews
and departments and maintain harmonious liaison with all departments concerned;
■ Plan and produce work orders and schedules for equipment requiring maintenance and provide work packages
to work crews;
■ Responsible for maintaining all records in the CMMS and ensuring that all instructions, procedures, records,
and files are correct and up-to-date;
Responsibilities and duties ■ Ensure that all completed work packages are reviewed with plant management with the intent of improving quality
and efficiency of work and eliminating error;
■ Assist in preparing reports forecasting future resource requirements, equipment overhaul results, persistent
problem areas, and necessary equipment modifications or replacement;
■ Assist in establishing and maintaining preventative and predictive maintenance programs consistent with RCM
principles;
■ Develop and maintain various performance indicator reports for plant management;
■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ Ability to organize, supervise, and schedule work and provide training, leadership, and direction to other staff;
■ Familiar with and adhere to the corporate safety manual and other approved safety practices and procedures.
Appendixes | 121
■ Provide technical oversight on hydrology/hydraulic analysis and any changes in floodplain mapping and studies;
■ Review and approve of any modification to XYZHP dam or appurtenant facilities which might impact their safety;
■ Direct changes to project operations if necessary, to ensure the safety of XYZHP dam, spillway, and appurtenant
facilities during emergency circumstances;
■ Review and approval of emergency actions plans;
Responsibilities and duties ■ Participate in the planning, scheduling, and implementation of maintenance programs for all civil works associated
with the generating stations; Interface with other maintenance supervision and other departments or work-related
concerns and problems;
■ Assist in preparing estimates for budgetary requirements;
■ Prepare Engineering Reports, Capital Project Justifications, Special Maintenance Work Order Reports, specifications,
and initiate purchases;
■ Update, develop, and recommend maintenance procedures;
■ Work with Workplace Safety and Health Officer to ensure facility environmental, health, safety, and security are
compliant;
■ Participate actively and positively in the development and achievement of the team’s goals;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ University degree in civil engineering and a minimum of eight years of experience related to the design,
construction, and operation of access roads, dams, tunnels, and hydropower plant. An equivalent combination
of education and experience will also be considered;
■ Demonstrated commitment to occupational health and safety;
■ Demonstrated managerial and leadership skills combined with excellent interpersonal skills and a proven track
Qualifications and skills
record as a team player are essential;
■ Possess good working knowledge of plant operations processes and practices and have the ability to take a
leadership role in resolving related operational issues;
■ Demonstrated skills and experience in solving complex and sensitive matters courteously and discretely, consistent
with best operating principles.
122 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Maintain and update project GIS database including site surveys, maps, and drawings;
■ Operate and maintain a variety of mechanical, digital, analogue, wireless, computerized, and other equipment
Responsibilities and duties required for engineering surveys;
■ Attend project safety meetings, and follow all safety rules and regulations;
■ Assist in the development of maintenance procedures and be responsible for the execution of the same;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions;
Appendixes | 123
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions;
124 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Manage community relations, environmental and social compliance, and workplace health and safety functions
of XYZHP;
■ Manage human resources team supporting XYZHP;
■ Provide management with financial advisory support services including the interpretation of financial results,
Responsibilities and duties operating and capital cost budget preparation, and reporting;
■ Responsible for working with the management team to develop strategic business plans for the organization.
Contributes to the development of departmental goals and objectives and management of the operating
procedures and budgets so that the organization meets financial goals;
■ Manage capital and operating budgets, approving and controlling authorized expenditures;
■ Produce weekly/monthly project progress reports for Managing Director, BOD, and other stakeholders;
■ Participate in BOD, Steering Committee, and other meetings as directed by the Managing Director to represent the
interests of the XYZ;
■ Perform other duties and responsibilities as assigned.
■ University degree in finance, accounting, and/or business administration. A Master’s degree in Business
Administration would be an asset;
■ Must have 15 years related to the management of finance and admin departments of a utility and/or a small to
medium public/private institution. An equivalent combination of education and experience will also be considered;
Qualifications and experience
■ Demonstrated managerial and leadership skills combined with excellent interpersonal skills and a proven track
requirements
record as a team player are essential;
■ The successful candidate will also demonstrate proficiency in all of the corporate leadership and core
competencies with particular emphasis on: visionary leadership, developing competency in others, building
customer relations, building trust, communication, and financial responsibility.
Appendixes | 125
■ Implement CSR action items and manage stakeholder relationships and public safety related to the operation of
XYZHP;
■ Manage budget related to CSR, stakeholder management, environmental and social compliance, and workplace
health and safety;
Responsibilities and duties ■ Produce weekly/monthly project progress reports for manager;
■ Assist the manager with other internal and external communications as required, including news releases,
executive speeches, event planning, articles, brochures, and reports;
■ Ensure all communications support corporate goals and objectives;
■ University degree in business administration, communications, and or public affairs from an institute of recognized
standing;
Qualifications and experience ■ Must have 15 years of related experience in communication, public affair departments of a utility, and/or a large
requirements public/private institution. An equivalent combination of education and experience will also be considered;
■ Demonstrated supervisory and leadership skills combined with excellent interpersonal skills and a proven track
record as a team player are essential.
126 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Coordinate with operations and assist in resolving deficiencies identified by various inspections;
Responsibilities and duties ■ Implement programs to ensure environmental and social compliance including drafting plans and reports,
and compiling and analyzing data relating to compliance and process quality control work;
■ Manage contractors and consultants, as needed;
■ Work with Workplace Safety and Health Officer to ensure facility environmental, health, safety, and security are
compliant;
■ Attend plant safety meetings, and follow all safety rules and regulations;
■ Direct and provide on-the-job training and assist in the appraisal for junior personnel.
■ University Degree in business management, chemistry, environmental sciences, or related field from an institute
of recognized standing;
■ Must have 10+ years of relevant experience in environmental and social impact assessments, and/or compliance
experience of civil and power infrastructure. An equivalent combination of education and experience will also be
considered;
Qualifications and experience ■ Must be prepared to undertake further development of technical or leadership skills through participation in
requirements internal and external training and development;
■ Ability to prepare compliance reports in a clear, concise manner;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions;
Appendixes | 127
■ Track and audit organizational performance and compliance against policies, programs, and procedures;
Responsibilities and duties ■ Review and develop work and site plans, which supports a safe workplace environment;
■ Attend necessary operations meetings to discuss health and safety concerns and issues;
■ Develop and conduct monthly safety meetings on topics designed to promote a better understanding of company
policies, programs, procedures, and general health and safety;
■ Respond in a timely fashion to the incident; lead completing all incident investigations;
■ Track and oversee regular reporting of health and safety metrics to develop KPIs to drive the business toward
exceeding organizational compliance goals;
■ Work with operations group to ensure safe work procedures are developed and appropriate for all field operations;
■ Diploma in safety and/or environmental management or related field from an institute of recognized standing;
■ Must have 10+ years as a safety officer in a utility environment with hands-on working experience in a safety
management system (SMS);
■ Valid standard First Aid and CPR certifications and other safety training such as Fall Arrest, Confined Space, etc.;
Qualifications and experience ■ Ability to work collaboratively as part of a cohesive team, as well as the ability to work independently with minimal
requirements supervision;
■ Flexibility regarding scheduling (open to working nights or days for auditing);
128 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Assist management with issues related to pay grades, raises, benefits, and compensation;
Responsibilities and duties
■ Recommend new approaches, policies, and procedures to effect continual improvements in the efficiency of the
department and services performed;
■ Manage leaves of absence and return to work programs;
■ Direct and provide on-the-job training and assist in the appraisal for junior staff;
■ University degree/diploma in human resources or related field from an institute of recognized standing;
■ Must have 10+ years of relevant experience of managing Human Resources Department of a utility, public and/or
private institution;
■ Must know local and regional labor laws;
Qualifications and experience
■ Must be prepared to undertake further development of business or leadership skills through participation in
requirements
internal and external training and development;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions;
■ Must have a thorough understanding and working knowledge of local industry employment norms and
compensation, including employment benefits.
Appendixes | 129
■ Assist management with the formulation and implementation of standardized job descriptions, performance
management, hiring, discipline, and termination of employees;
Responsibilities and duties ■ Assist management with employee learning and development activities, including training and capacity building;
■ Assist management with issues related to pay grades, raises, benefits, and compensation;
130 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Responsible for the monthly, quarterly, and year-end reporting of OM&A expenditures, including the preparation
of company annual and quarterly reports, corporate management report, year-over-year analysis, and year-end
working papers;
■ Responsible for the monthly, quarterly, and year-end reporting of capital expenditures, including summarization
of project-variance analysis;
■ Assist in the coordination and rollup of the corporation’s annual OM&A budget submission;
Responsibilities and duties ■ Provide functional and technical guidance and professional advice on finance and accounting matters through
financial analysis, interpretation of results, the recommendation for changes and improvements involving use and
control of local financial resources;
■ Coordinate customer inquiries, payment of arrears, disconnection issues, etc.;
■ Manage the preparation of operating and administrative expense reports on a monthly, quarterly, and yearly basis
to compare actual costs with approved budget and forecast;
■ Prepare the consolidated equivalent full-time employee report and provide analysis for the monthly management
report;
■ Provide assistance to finance staff with financial system reporting queries;
■ University degree in accounting, business administration, and/or related field from an institute of recognized
standing;
■ Completion of a recognized professional accounting designation;
■ Must have 15+ years of relevant experience as a controller, senior accountant in an SME public or private
Qualifications and experience institution;
requirements
■ Must have complete working knowledge of international accounting rules and best practices;
■ Must be prepared to undertake further development of business or leadership skills through participation in
internal and external training and development;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions.
Appendixes | 131
Qualifications and experience ■ Must have 5+ years of related experience as an accountant in large public and or private institution;
requirements ■ Must know local and international accounting rules and best practices;
■ Must be prepared to undertake further development of business or leadership skills through participation in
internal and external training and development;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions.
132 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Liaise with suppliers and staff on matters relating to procurement, internal controls, and relevant legislation;
■ Coordinate delivery schedules, monitor progress, and liaise with clients and suppliers to resolve issues;
■ Provide input and maintain relevant policies and procedures including contract administration manual and
procurement templates;
■ Maintain electronic and manual procurement records;
■ University degree/diploma in business administration and/or related field from an institute of recognized standing;
■ Completion of a recognized procurement designation;
Qualifications and experience ■ Must have 10+ years of related experience as a procurement officer in large public and or private institution;
requirements ■ Must be prepared to undertake further development of business or leadership skills through participation in
internal and external training and development;
■ Possess initiative and mature judgment with the ability to make and implement sound decisions.
Appendixes | 133
■ Assist with the ordering and purchase of materials to ensure stock levels remain at proper levels, and the
procurement of services as required;
■ Research material sourcing options and prepare reports for management;
Responsibilities and duties ■ Ensure all materials ordered abide by specifications laid out by each respective ordering department;
■ Conduct inventory and warehouse maintenance activities (including counting and sampling) regularly as required;
■ Diploma in business administration/accounting and/or related field from an institute of recognized standing;
■ Must have five years of related experience as an accountant/storekeeper in large public and/or private institution;
■ University degree/diploma in business administration and/or related field from an institute of recognized standing;
■ Must have 10+ years of related experience as a property manager/supervisor in large public and or private
134 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
The comparison of actual performance with internally established targets aims to identify and guide
the actions that will help the corporation meet its overall objectives. The comparison with others is to
identify best performers within the industry, to understand best practices, and subsequently learn from
these high performers in order to improve a utility’s own overall performance.
Most electrical utilities develop performance measures that help them in developing (and guiding) the
actions required to ensure that the utility meets the goals and objectives set out in its annual corpo-
rate strategic plan (business plan). In practice, the goals and objectives are developed first, then the
measures and corresponding targets are established, and then the comparisons of actual performance
versus target performance is made. In order to ensure that a company’s business plan does not become
too focused on one or two “performance areas” (e.g., finance and reliability), a number of goals and
objectives are identified across the performance spectrum, and hence, the key performance indicators
(KPIs) are also created to monitor the performance across this spectrum.
The most common performance areas that many utilities focus on are safety, financial, plant (unit),
environmental impact, and human resources.
Within these performance areas, commonly used KPIs are as shown in Table E.1.
If performance measurement comparisons are to be made with other utility companies, also known as
“benchmarking,” it is imperative that the comparisons are made with similar utilities/plants and that the
data are collected and analyzed in a similar fashion. There is no use in comparing the performance of two
dissimilar utilities or comparing data that were not collected in the same fashion. It is important that KPI
data (performance measurement information) are collected and shared in an open and consistent manner.
Several associations exist that encourage benchmarking and, as such, they provide their members with
the measurement and analysis guidelines (or standards) required to ensure that comparisons are mean-
ingful and consistent. These associations allow members to:
Appendixes | 135
■ Cost of special maintenance work orders/maintenance work order budget (expressed as a percentage)
performance ❑ Accidental releases of harmful products from its primary storage vessel
❑ Percentage staff that have reviewed the spill response manual (annually)
Examples of North American associations include the Electrical Utilities Cost Group (EUCG Inc.), the
Canadian Electricity Association (CEA), and the National Hydropower Association (NHA).
The EUCG Inc. (formerly known as the Electric Utility Cost Group) is an international association of
utility professionals that shares information with the goal of increasing their performance and compet-
itiveness. The international membership is devoted to promoting accuracy, quality, and efficient data
management, and because of this dedication, the EUCG is able to provide state-of-the-art plant per-
formance data to its members. The EUCG hosts a semiannual conference and workshop program that
is attended by approximately 110 representatives of the world’s major international utility companies.
Networking between members at these events allows for the sharing of reliable information exchange
and best practices.
136 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Benchmarking KPIs are primarily grouped into three groups. Although there are many KPIs within each
of these three groups, there are two in each that are of prime importance, as detailed in Table E.2.
To ensure that valid performance indicator comparisons can be made between utilities, the EUCG’s
Hydro Electric Productivity Committee has produced very detailed definitions for the various data
inputs. These definitions are contained in the User Guide and Data Catalog, available to EUCG
members.
■ Pumping hours (if applicable—the hours that the turbine/generator is operated as a pump/motor)
Performance group
■ Condensing hours (if applicable—the hours that the generator is run as a synchronous condenser)
Forced outage rate (expressed as a percentage) is calculated as follows:
FOR = (forced outage hours/forced outage hours + service hours) × 100
where
Forced outage rate (FOR):
indicator of the health of the Forced outage hours is a sum of all hours that a unit was off-line due to immediate, delayed, and
equipment postponed forced outages. By definition, a forced outage is an outage caused by an unplanned
component failure or other condition that requires that a unit be removed from service immediately or
before the next weekend.
Service hours is a sum of all hours where the unit is connected to the grid.
It is expressed as:
Production cost per unit: Operating costs + maintenance costs/total electricity generated (in MWh)
indication of the total production Operating costs are cost items, activities, or services which directly impact or control the operation of the
costs associated with generating plant/facility or involve the management of the system as a whole with the specific outcome being the
a MWh of electricity for a given generation of electrical energy. Power Marketing (trading) activities are not included.
reporting period.
Maintenance costs are cost activities specifically directed at supporting or ensuring that equipment or
facilities are available when required, to support the operation of the plant/facility.
Costs group It is expressed as:
Production cost per installed Operating costs + maintenance costs/total installed capacity (in MW)
capacity: indication of the total Operating costs are cost items, activities, or services which directly impact or control the operation of the
production costs associated with plant/facility or involve the management of the system as a whole with the specific outcome being the
the total installed capacity to generation of electrical energy.
generate electricity for a given Power marketing (trading) activities are not included.
reporting period.
Maintenance costs are cost activities specifically directed at supporting or ensuring that equipment or facilities
are available when required to the support operation of the plant/facility.
(continued)
Appendixes | 137
Canadian Electricity Association (CEA): Canadian utilities make annual data submissions to
several groups within the CEA organization. The first one is the Committee on Corporate Performance
and Productivity Evaluation (COPE) that established over 227 KPIs to allow for comparisons of perfor-
mance in the following areas:
The second CEA group to which utilities submit data is the Consultative Committee on Outage Statistics
(CCOS) which reports annually on their equipment reliability information system (ERIS). This com-
mittee identifies the top 10 performers in terms of generating unit level performance. The ERIS data
submittal entails reporting every state change the generating unit makes within a given period, and the
KPIs are calculated from that information. No power generation is reported to this system.
■ available states
❑ operating (O)
❑ operating under forced derating (OFD)
❑ operating under scheduled derating (OSD)
138 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ incapability factor (ICbF)—the ratio of total equivalent outage time, in hours to number of unit
hours
■ de-rated adjusted forced outage rate (DAFOR)—the ratio of equivalent forced outage time to equiva-
lent force outage time plus total equivalent operating time
■ available but not operating factor (ABNOF)—calculated by dividing ABNO + ABNO-FD + ABNO-SD
by unit hours.
Note: For further reference, see:
Appendixes | 139
Terms of Reference
Preparing an Operation and Maintenance Strategy for [name of the hydropower power
plant or name of the utility, country]
Hydropower is the largest renewable source, accounting for two-thirds of the world’s renewable gen-
eration. In order to optimize the available hydropower capacity, efficient operation and effective main-
tenance practices are critical. While safeguarding the environment and the safety of employees and
surrounding communities, hydropower plants maximize stakeholder benefits. Operation and main-
tenance (O&M) refers to all activities needed to run a hydropower plant, project or fleet (excluding
replacement or construction of new facilities, but generally can include rehabilitation of existing com-
ponents, and maintenance overhauls).
While new dams are being commissioned and new hydropower plants will be constructed, major chal-
lenges in hydropower O&M are faced by operators and utility managers. Poor O&M results in signifi-
cant tangible consequences, including loss of electricity production, loss of revenues, high outage rates,
performance losses and, in time, heavy rehabilitation/replacement costs, which are often much higher
than preventive O&M costs. More indirect and longer-term impact of poor O&M also includes threats
to dam, public, and environmental safety which may even lead to emergency situations, and eventually
loss of lives and properties. This is not only due to a lack of technical capacity of utilities, but also due to
a shortage of financial resources of the utilities to operate the plants.
■ country context,
■ hydropower fleet targeted by this consultancy, its status and O&M difficulties encountered,
■ key stakeholders, including the client . . .]
In that context, [the client] seeks the support of a consultant to prepare an O&M strategy which will
sustain the efficiency of its hydropower fleet over the long run. The proposed O&M strategy should
cover the full life cycle of the fleet from commissioning through operations and multiple life extensions/
rehabilitation programs to the end at decommissioning, dismantling, or reconstruction, while providing
more details for the upcoming [5–15] years to come.
The consultant shall assist [the client] to prepare, validate, and get approved an ad-hoc O&M strategy
for its hydropower fleet.
140 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
The objectives of the services will be achieved through the following major activities:
In order to meet these objectives, the consultant shall carry out the following set of activities:
■ Step 1: Diagnosing existing O&M performance. The consultant will (i) determine how well
the existing operator has been operating as well as (ii) assess its O&M capacity, procedures, and
organization [or for a greenfield: assess the O&M capacity of the foreseen operator]. Through indi-
cators to be proposed by the consultant, the consultant will also assess the following: safety perfor-
mance, financial performance, plant (unit) performance, environmental impact performance, and
employees’ skills, knowledge, and relations. The diagnostic should at least assess the following key
performance indicators (KPIs): availability factor (AF), forced outage rate (FOR), accident fre-
quency rate, accident severity rate, number of releases of environmentally damaging products (oil,
sulfur hexafluoride, R22, etc.). In this first step, the consultant will (i) gather and analyze all data
available and deemed necessary for the diagnosis, (ii) implement on-site visits for visual inspections
(not outages and/or equipment disassembling are foreseen at this stage), and (iii) implement inter-
views with key management and technical staff (on-site but also at corporate/utility level).
On this basis, the consultant will prepare a condition assessment of most critical components
of the fleet to understand the nature and scope of any works required to restore, secure, and/or
modernize the facility. The consultant will then investigate/analyze whether the identified needs
are reasonable given the age and operating hours of the facilities or brought about mainly because
of inadequate O&M practices; and if so, what were the root causes (root cause analysis). The
consultant will also assess whether the need for rehabilitation may also arise due to site conditions,
a fault in the original design, or inadequate quality or construction methods.
The consultant will also implement a diagnosis of O&M capabilities, organization, and
practices of both the owner and the operator. [For developers of new projects, this will entail
examination of the experience and capabilities of the foreseen operator.] The consultant will,
Appendixes | 141
On this basis, the consultant will prepare a risk assessment in order to prioritize items/
equipment/resources/organizational and capacity features that deserve special attention. In pre-
paring such risk assessment, the consultant will assess each of the main scheme components (or
functional system) for its likelihood and consequence of failure, or impact (on safety but also rev-
enues). Based on the combination of the likelihood and impact, the risk’s criticality level will be
classified. This risk assessment will also help in prioritizing strategic activities and where needed
requirements for repair and refurbishment. The consultant is required to detail proposed methodol-
ogy for such risk assessment in his proposal.
Where improvements are required, the consultant will propose and prioritize changes to be made to
eliminate the root causes of poor performance, including if needed, changes in the business envi-
ronment, financing resources for O&M . . . as well as in tariffs and/or government subsidies when
revenues are insufficient to cover costs.
As a synthesis of this step, the consultant will produce a diagnosis report that, if deemed neces-
sary, will include recommendations for activities/further measures/equipment that would support
improving data collection and associated diagnosis. At this stage, the consultant will confirm KPIs
that will drive the strategy.
■ Step 2: Defining objectives for the O&M strategy. Based on the diagnosis, the consultant
will articulate and quantify O&M objectives to be reached by the strategy. [At this stage, the client
emphasizes the importance of X/Y aspects but requires the consultant to review these priorities].
The proposed objectives should highly contribute to the overall business and performance objectives
of the utility. Proposed objectives should also be consistent with state-of-the-art technical operating
rules, legal and regulatory requirements, establishing modern maintenance management systems to
preserve and prolong the life of the assets, ensuring the safety of assets and people, while protecting
the environment. At this stage, the consultant will synthetize, quantify, and value expected marginal
technical and financial benefits from the proposed objectives (in comparison with a business-as-
usual scenario).
142 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
■ Step 4: Selection of the most adequate O&M contractual model. Based on the activities
selected in Step 3 and capability assessed in the diagnosis (such as owner’s capabilities, availabil-
ity of local human resources, current business and political environment . . .), the consultant will
explore O&M contractual models to distribute activities between internal implementation and/or
external supports/contracts. Different types of O&M contractual models considered could be based
under the following broad categories (that the consultant can customize and further detail as per
local ad-hoc needs):
The consultant will detail potential needs for external support, ranging from capacity building and
training activities, technical assistances, service contracts, performance-based management con-
tracts . . . [If deemed necessary, option for affermage or concession arrangements may have to be
considered.] The consultant will also draft key terms of the proposed contracts, including distribu-
tion of risks and responsibilities between parties, time and lump sum based components, bonuses
and penalties, description of KPIs (including metrics) to measure performance. On this basis, the
consultant will summarize all activities and contracts to be implemented, including recommenda-
tion for procurement methods, estimated costs of contracts, and timelines. The consultant will also
recommend allocation of responsibility for implementing and procuring these activities in a respon-
sibility matrix (such as those illustrated in the following reference: https://en.wikipedia.org/wiki/
Responsibility_assignment_matrix).
Appendixes | 143
■ Step 6: Estimation of financial resources. The consultant will estimate the main OPEX and
CAPEX expenditures required to implement the recommended O&M strategy. The consultant will
also plan and estimate the overall required O&M budget over a five-year horizon and projected lon-
ger-term major maintenance work, and for major capital replacements and refurbishment projects
within [10–15 years]. By doing so, the consultant should make sure that a sufficient budget will be
planned so that the facilities can be operated and maintained in accordance with targeted objectives
and good industry practice.
■ Step 7: Validation of the strategy. The consultant will carry out cost-benefit analysis (includ-
ing some sensitivity analysis) to validate the financial viability of the O&M strategy. On this basis,
if needed, the consultant will provide adjustment to objectives targeted in Step 2, activities recom-
mended in Step 3, and associated cost until forecasted financially sustainability is achieved. The
cost-benefit analysis should incorporate direct and indirect costs and revenues, including energy
losses during outages. Need and costing for insurances will also be evaluated.
The consultant will also organize internal (and where needed external) stakeholder consultations
[broad list to be provided by the client] on the basis of which the consultant will suggest options to
adjust the strategy.
■ Step 8: Preparation of roadmap to implement the strategy. The consultant will prepare
a detailed roadmap to support the client in implementing the strategy. In close collaboration with
the O&M management team, the consultant will also prepare the next five-year capital program
and next year annual operating plan that will frame next year activities and kick-off O&M improve-
ments. The consultant will also provide guidance on monitoring and performance measurement to
ensure the effectiveness of the strategy implemented.
The utility management will be closely involved by the consultant at every step of the process. As an
iterative process, all activities mentioned above will always be conducted in close coordination with
ministerial counterparts [to be listed].
[The client may add here any requirements for the consultant to support actual implementation of
the strategy or any other foreseen tasks such as dam safety for example.]
144 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
Duration of services is [7] months after contract is signed (t0) [duration to be adjusted depending on
the size of the fleet included in the strategy].
Final versions of reports will be submitted no later than two weeks after reception of comments. The
client is committed to deliver comments no later than two weeks after reception of draft reports.
The consultant will also organize two workshops: one for presenting key outputs from deliverables B
and C and another one with deliverable D.
The consultant will also be required to put in place an on-line shared database that will gather all infor-
mation collected. The database will be handed over to the client at the end of the assignment.
5. Qualification requirements
The consultant should have implemented at least one similar contract in the last [10] years. The consul-
tant should have skills at least in hydropower operation and maintenance, electro-mechanical engineer-
ing, asset management, business planning, and financial analysis. The consultant should have strong
interpersonal and communication skills to be able to interact with the utility and plant staff at all levels.
Proposed key staff shall meet the qualifications and requirements listed in the following table. In
addition, all staff must be fluent in [English] (written and oral), and well versed in the use of stan-
dard computer tools such as the Microsoft Office Suite. The consultant is invited to list in his proposal
(i) adjustments to proposed key staff where deemed relevant and (ii) any other non-key specialists.
Where relevant, a single CV could be submitted for different positions.
The person who will be designated as Team Leader must also have excellent skills in project manage-
ment as well as excellent oral and written communication skills. Knowledge of [language] is not com-
pulsory but would be an asset.
Appendixes | 145
YEARS OF
TITLE SPECIFIC EXPERTISE
EXPERIENCE
At least seven years of experience in O&M of hydropower fleet, including at least five years in
management. Preference for a generalist having integrated views between technical, financial,
O&M Specialist [team leader] 12
managerial, human-resources, HSE, etc., aspects. Experience in understanding and managing
corporate and governance issues linked to O&M will be preferred.
Engineer with at least seven years of experience in O&M of electro-mechanical equipment.
Electromechanical Engineer 10
Technical knowledge in key hydropower equipment including turbine, gates, valves, penstocks, etc.
Control and Protection/SCADA Electrical Engineer or technician involved as key staff for the design (and if possible O&M) of
10
Specialist control and protection and SCADA systems for at least three HPP projects.
Professional with at least 10 years of experience in the development of human resources. The
proposed candidate must be familiar with the requirements in the energy sector, and preferably
Human-Resources, the electricity sector with hydropower content. He/she must have previous experience in at least
10
Capacity-Building Specialist two projects where skills gap analyses were carried out and shall demonstrate the successful
implementation of the recommended program. Proven track record of working with local staff in
developing countries is essential. Knowledge of [country/area] conditions is considered an asset.
Experience in power generation from various sources, including in at least two hydroelectric
projects in Africa. Good knowledge of international and regional environmental and social policies
Financial Analyst 7
and WB environmental and social framework as they relate to hydro developments, as well as legal
framework and property/land issues in Liberia and the region.
[Other staff that can be considered as key or non-key: Hydromechanical engineer; cost esti-
mator; electrical engineer (switchyard and transmission); civil engineer; health, environment, and
social experts]
The consultant is requested to present in his proposal key resumes, proposed methodology, as well as
level of efforts required for each step.
A steering committee chaired by [either the plant or utility manager] will meet at the end of every step
to share the results and validate the deliverables. A project committee gathering [a smaller group of
people—functions required to be listed] will meet with the consultant to assess the project progress.
7. Client inputs
[client name] will provide to the consultant all necessary project documentations and support the con-
sultant in collecting data and arranging necessary meetings. [client name] will also arrange the work
place in [location].
[For further guidance on methodology and outputs under each step, the consultant may consult the
handbook developed by the World Bank and available online.]
146 | Operation and Maintenance Strategies for Hydropower—Handbook for Practitioners and Decision Makers
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Appendixes | 149
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Appendixes | 151
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