There are many uncertain factors in economic analysis of hydropower project, of which the most important are annual energy generation and project cost. The method of probability analysis on above two factors and its effect on economic indices is proposed in this paper. The given example has proved that this method is feasible and practicable. Seeing that uncertainty of annual energy generation is objective and could be analyzed based on hydroenergy calculation result, it is suggested that effect of annual energy generation on economic evaluation indices be carried out in economic evaluation of hydropower project.
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