The Feuerschaugemeinde (see note below) of Appenzell operates the Seealp-Wasserauen small hydropower plant, a facility constructed in 1904 and using water from the Seealpsee over 250 metres higher in elevation than the plant. The machinery in the power house has been renewed a number of times but the penstock pipe is still the original and is, for the installed machines, too small. Under full load conditions about a quarter of the potential energy is lost due to friction losses in the pipe.

In view of the renewal of the water use concession in 2004, a number of different alternatives for future action were investigated. The upgrading of the pipe to 700 mm diameter and a consequent increase in flow from 320 l/s to 1000 l/s was found to be the most economical solution. During a period when the lake level was especially high the old turbine was tested at a flow of 1300 l/s and produced an output of 2.3MW.

A technically demanding aspect of the project was the construction of the intake part of the headworks. The lake level was lowered by around 5 metres to allow this work to be carried out. A major part of the project was the renewal of the 2 kilometer long pipeline along a steep, narrow, unstable and very rocky section of the access track from the power house to the lake. In August 2003 a decision on the construction was taken and in the latter part of the year preparations were begun. The main work lasted from April to November 2004 and the final installation and commissioning were completed in the winter of 2004/2005. ITECO was involved with the project from the initial studies to the completion of the design and construction, supporting and advising the client on the water use concession, leading the submission process and taking over the construction management including most of the site planning and supervision. There was close cooperation between ITECO, local consultants and quantity surveyors during this time.