Hydro Power Generation Roundup: Industry Sees Strong Potential in President's Climate Action Plan, but Seeks Funds

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Researched by Industrial Info Resources (Sugar Land, Texas)--When President Obama unveiled his Climate Action Plan late last month, most industry sources concentrated on the carbon dioxide and fossil fuel-related parts of the plan. But little discussion so far has been devoted to hydroelectric power generation. Industrial Info examines that topic here.

For more information, see July 1, 2013, article - Power Industry Weighs Realities of President's Climate Action Plan.

Obama's plan includes a proposal to accelerate permitting for "clean energy projects," including hydroelectric power at existing dams. Earlier in the year, the U.S. House of Representatives unanimously passed the Hydropower Regulatory Efficiency Act, and the Senate Energy and Natural Resources Committee passed identical legislation in the Hydropower Improvement Act, making hydroelectric power one of the few issues that has drawn bipartisan support. While neither bill has become law yet, indications are that they likely will pass. When this happens, the licensing process will be significantly shortened from the current five- to 15-year process and allow for faster development and construction of hydro projects.

Click on the image at right for a graph detailing U.S. hydro power projects that are scheduled to begin construction between now and 2025.

Of note is the Red Rock Hydroelectric Project (RRHP) in Iowa, which the Federal Infrastructure Projects Permitting Dashboard says will be capable of generating up to 55 megawatts (MW) at certain times of the year. The existing Red Rock Dam is owned and operated by the U.S. Army Corps of Engineers, on the Des Moines River near Pella, Iowa. This project is perhaps the leading example of planned power production at existing dam facilities. RRHP is the first hydropower project designated for priority permitting. It is expected to begin construction this year and to be online by 2016. The project is set to use two 18.2-MW Voith Vertical Kaplan Hydroelectric Turbine Generators.

In reacting to Obama's speech, Voith Hydro (York, Pennsylvania) President and CEO Kevin Frank said: "The president's announcement is welcome news for clean energy advocates, as well as the entire hydropower industry. We are excited the president has designated the Red Rock Hydroelectric Plant--which is being equipped with Voith turbines, generators, automation, and plant systems--for the Infrastructure Permitting Dashboard. This designation will help to expedite other hydropower projects across the U.S. Coupled with recent Congressional action to streamline the regulatory process for hydropower projects, we are beginning to see tangible progress toward expanding reliable, clean, and low-cost American hydropower."

The Bigger Picture
According to most estimates, North America has developed 33% of technically feasible hydro power potential, followed by Europe (including the Commonwealth of Independent States) at 30%, Australia with 27%, Asia with 23%, South America with 20%, and Africa with 8%. This means that while North America leads the way in terms of developed capacity (75,000 MW of hydro capacity, not counting pumped storage) there is still a huge potential for further development.

In May of this year, National Hydropower Association (NHA) Executive Director Linda Church Ciocci said: "In 2011, hydropower constituted two-thirds of our renewable electricity generation, helping the United States avoid over 225 million metric tons of carbon emissions--the equivalent of taking nearly 50 million cars off the road. But our industry's full contributions remain untapped. Hydropower can continue to grow and we applaud the president's recognition of the opportunity to expand hydropower at the nation's existing infrastructure."

Many of the existing hydro facilities around the country have the potential to substantially increase capacity. This can be achieved through retrofitting existing generation units with newer, more efficient components and/or expanding those units, adding powerhouses at existing dams that don't already have them and using newer fish-friendly turbines that will face reduced opposition from local and environmental groups.

The Electric Power Research Institute (EPRI) estimates that 14,000 MW could be added to the electricity supply by 2025, and NHA estimates 11,250 to 19,900 MW could be added by that date.

Funding Reduced
Looking at the broad picture of funding for hydroelectric power, the House Energy and Water appropriations bill, issued last month, said that the Senate Energy and Natural Resources Committee recommends $24 million for research and development on water power. That amount is more than $34 million below fiscal year 2013 and $31 million below the budget requested. When compared with recent years, there appears to be no budget at all between 2005 and 2007. In 2008, there was $10 million in the budget, and that amount grew to $40 million in 2009 and $50 million in 2010, before dropping to current levels. If the Obama administration wants to back the president's plan, it will have to come up with some meaningful funding to make the country's renewable potential a reality.

In spite of this reduced funding, Industrial Info is tracking 309 hydro power projects in the U.S. with an estimated total investment value of more than $73 billion, starting between now and 2025.

Industrial Info will be in attendance at HydroVision International. The event runs July 23 through 26 at the Colorado Convention Center in Denver. Industrial Info will be at booth No. 456.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.