Comparative Study of Cost Estimation Techniques for Hydropower Projects

Abstract

This research paper considers a comparison done on cost estimation techniques applicable to hydropower projects. Considering traditional methods of analogous, parametric, and bottom-up estimating techniques, and modern approaches like cost-benefit analysis, risk-based estimation, artificial intelligence, and Monte Carlo simulation, this study was supposed to bring out the relative strengths and weaknesses of each technique and show under whatproject scenarios such techniques are applicable. This will enable the study to delve into minute detail, compare the techniques for accuracy, precision, efficiency, and best fit concerning project characteristics through a rigorous analysis of existing literature supported by empirical data from surveys and interviews with industry experts. The research culminates in the development of a practical framework that will offer guidelines for choosing the best cost estimation technique that fits a particular project and its related factors, hence enabling the stakeholders to make informed decisions and avoid financial risks that surround hydropower development.