A number of factors-geographic and economic influence construction of hydro-electric power plants:

(i) Precipitation.

The amount, character and distribution of precipitation in the form of rain, snow etc. determines power potentialities of any region. There cannot be water-power development in a desert unless there is a river like the Nile in Egypt or Colorado in the U.S.A. The volume of water in the river determines the amount of energy. The amount and character must be evenly distributed throughout the year.

(ii) Uniform Supply of Water, either from streams, rivers or Lakes.

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A constant and uniform flow of water is necessary to enable a hydro-electric plant to work at full capacity. There are, in fact, very small numbers of rivers which have sufficient flow of water throughout the year.

The presence of lakes, which act as natural regulators, is of great help in maintaining regular and constant flow of water. The water of a river or lake must be clean and free from silt otherwise power plants will be damaged. Snowfields and glaciers act as natural reservoirs. They maintain flow of water during the summer season.

(iii) Topography.

Mountainous relief of good ‘head’ or fall of water, are suitable for producing hydro-electricity. Many mountain streams with small volume of water but tremendous drop have been harnessed for hydro-electricity.

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Rapids and falls in mountain regions usually offer very good sites for hydel-power generation.

(iv) Absence of or Inadequate Coal or Oil Resources.

The absence of coal or oil encourages the development of hydel power to a large extent. For instance, Switzerland and Japan have near-absence of supplies of coal or oil and thus hydel-power stations are constructed in order to meet growing demand of power.

(v) Demand.

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There should be sufficient demand of electric power.

(vi) Accessibility.

The hydel-power sites must be near to the centres of consumption because there is a limit to the transmission of electric power. It cannot be taken more than 600 km away from its source.

(vii) Cheap Raw Materials.

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Availability of cheap raw material and cheap labour for the construction of hydel-power stations and lying down of power lines are necessary. Cost of iron, labour and cement have large influence on the construction cost of hydel power plants and dams.

(viii) Capital Requirements.

The harnessing of water-power is an expensive task. The initial capital requirement in building dams, reservoirs, power plants and laying down the transmission lines arc a costly affair.

As such, the construction of hydel- power station is generally undertaken either by big public limited companies or by the governments.