Abstract--This paper presents the economic-analysis results
and calculated potentials to study future installation of micro
hydro power (MHP) plants in some selected canals of Chia-Nan
Irrigation Association in Taiwan. There are total 17 Irrigation
Associations in Taiwan and each Irrigation Association has a
number of irrigation canals with available water captured from
several large streams in Taiwan for farmland irrigation. These
irrigation canals have potentials to generate electric power using
MHP plants. This paper studies the potentials and economics of
seven irrigation canals with water heads higher than 2 m. Direct
cost, indirect cost, standby budget, and maintenance cost, etc. are
employed to compare with the average annual return that the
generated electric energy delivers to the utility grid using a
simple payback-period method. With the proposed economicanalysis
results and potential outcomes, Chia-Nan Irrigation
Association may determine the best locations with minimum
payback years to install suitable MHP plants for electric power
generation. This economic method can also be applied to other
Irrigation Associations in Taiwan to take best advantage of water
resources.