Stimulating New Hydro in the U.S

Implications: Canadian efforts in Nova Scotia are demonstrating how government and industry can work together to encourage emerging hydroelectric technologies. In the U. S., hydropower is being overlooked in the efforts to add reliable, domestic renewable energy to the U.S. generation portfolio. For a fraction of the research funding and incentives provided to the wind industry, hydropower could add nearly double the name plate capacity of all the current wind capacity in the U.S.          1. The 12,000+ MW of nameplate wind capacity in the U.S. was achieved with government research support of $1 billion over 28 years.           2. For a fraction of that support hydro could provide almost double that figure (23,000 MW) in additional hydroelectric capacity by 2025.           3. To achieve the additional generation capacity hydro needs efforts in 3 areas:          a. Economic incentives          b. Investment in RDD&D          c. Regulatory support

Analysis:  Developments in Canada, particularly the demonstrations in the Bay of Fundy show how government and industry can work together to develop promising technologies.  This partnership is not working as effectively in the U.S. The effect is that we are not capitalizing on a valuable addition to our renewable portfolio. A recent article in Hydro Review magazine that I co-authored (Hydro Review, Vol XXVI, No. 8, January 2008 pgs 10-15) discusses the amount of hydroelectric generating capacity that could be added in the United States. The article based on research done for the Electric Power Research Institute (EPRI) lays out the potential for building on the existing 75,000+ MW of hydroelectric capacity and adding new capacity in the form of:

        Improved generation at existing facilities,
        New generation at existing dams and,
        Emerging wave and tidal technologies.  

The article highlights the 23,000 MW of nameplate capacity that could be added by 2025. To achieve this potential new capacity will require a 3-pronged approach:

             a. Economic incentives 
             b. Investment in RDD&D
             c. Regulatory support  

Economic incentive in the form of Production Tax Credits (PTC) and Clean Renewable Energy Bond (CREB) programs and Renewable Portfolio Standards (RPS) should fully recognize hydropower as a valuable contributor.  Various forms of these programs currently exist, but they are not applied uniformly to all types of hydroelectric generation. Fully applying these incentives to traditional and emerging hydro technologies would provide the financial underpinning to allow new projects to move forward.  

Like all technologies, innovation is a key to growth. Investment in research, development, demonstration and deployment (RDD&D) are crucial to improving technology and demonstrating its potential.  The Department of Energy has provided extensive support to the wind energy which has resulted in growth from virtually zero to over 12,000 MW of nameplate capacity over the past ~30 years. For a fraction of the amount devoted to wind development, hydropower could add 23,000 MW of new capacity. The capacity will be in the form of emerging wave and hydrokinetic technologies (tidal) combined with improved applications for more traditional hydro technologies. In 2008 DOE has budgeted $10,000,000 for hydro related research but this only meets a portion of the need.  

Regulatory support is the third area where the outlook needs to change if hydropower is to achieve its potential. Emerging technologies offer huge potential for offshore hydro generation (wave & tidal). Conflicting goals and requirements among resource agencies and regulators at the state and federal level create delays and disincentives.  The FERC’s recent efforts with their Pilot License Program are a good effort but increased action by other federal and state agencies are needed if the potential is to be realized.  

If we are serious about developing reliable domestic renewable energy, then we can not afford to allow the significant potential that expanded hydropower capacity represents go untapped. Given hydro's higher average capacity factor, dispatchablity, zero emissions and zero fuel cost, it should a generating source we embrace and encourage.