Hydro power is a good option for power supply because it is a mature technology, inexpensive and it constitutes sustainable development. This chapter teaches readers about the costs and benefits of renewal energy. Financial viability and key parameters, are taught and discussed to let know readers how to find out capital cost, operation cost and maintenance cost, production cost, levelized cost of electricity and tariff, etc.

In the process, it describes and imparts knowledge to readers about the cost break down structure where a project is broken into more than a few capex components such as civil work, infrastructure, project development, electro mechanical, electrical, etc. It deals with the detailed process of estimate staring from first principle of computation of rate by rate analysis to arrive at total cost and provides an idea of the break down cost percentage of each capex component.

It teaches readers the process of computation of levelized cost and tariff of electricity. Detailed computation of tariff of electricity is done in this chapter which educates readers about various key components which are required for computation and tariff of electricity in summation of fixed per unit and variable cost per unit.