What is the average cost of building a hydroelectric project?
According to the U.S. Department of Energy (DOE), based on 21 hydroelectric plants that commenced operation during 1993, the average capital cost for construction was $2,000 per kilowatt (kW) of capacity. These projects ranged in size from 125 kW to 32.4 megawatts (MW), averaging 4.81 MW of capacity. The capital cost per kW ranged from $735 to $4,778. The capital cost per kW for 9 of the 21 projects was within $300 of the average of $2000. The DOE site with this information can be found via our Hydro Links page. This and similar types of information, however, should be used cautiously. Even for projects with the same capacity to generate electricity, the costs of building a hydroelectric project can vary dramatically. Examples of variables include engineering considerations unique to each site where a project may be located; the developers ability to transfer electricity generated to the power grid or end user location; and potential environmental mitigation needs.
