Global CompetitionFocus on Hydropower

Sustainable Energy Coalition Renewable Energy and Energy Efficiency Expo and ForumWashington, DCJune 14, 2007

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Leading Worldwide Renewable Energy Portfolio

Canada 22 MWHydro, biomass

USA 380 MWHydro, wind, geothermal

Guatemala69 MW - Hydro

Costa Rica55 MW - Hydro, wind

Chile100 MW - Hydro

Italy 15,358 MW Hydro, geothermal, wind, solar

Spain900 MW

Hydro, wind, cogeneration

Slovakia 2.329 MW

Hydro

Brazil97 MW - HydroPanama

300 MW - Hydro

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Hydropower

Geothermal Under Development

Wind Power

U.S. Projects – Hydropower, Wind, Geothermal(by Technology & Development Stage)

As of March 2007

Wind Under Development

Geothermal Under Development & Hydropower (operating)

Hydropower & Wind

Hydropower upgrades undertaken

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Hydropower’s Role in America’s Energy Future

Misperception #1: Hydropower is a Mature TechnologyReality #1:

• Conventional hydropower comprises approximately 7% of US power generation and 9% of capacity;

• Upgrades and efficiency improvements at existing sites;

• Advanced turbine designs – Voith-Seimens design, Alden/Concepts NREC design and others;

• New breed of hydropower – hydrokinetic, ocean and wave, instream technologies that do not require the use of a dam/impoundments

Common Misperceptions

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Hydropower Technologies

Power from moving water without an impoundment

Hydrokinetic

Power from millions of gallons of water that moves through man-made channels

Varying technologies convert tidal and wave energy into electricity

Ocean and Marine

In-streamConventional

Power from moving water typically with dam and varying size impoundments

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Hydropower’s Role in America’s Energy Future

Misperception #2: All Possible Locations are Already DevelopedReality #2:

• 97% of all U.S. dams have no hydropower facilities;

• New technologies open up new vast new sites:Offshore – OceansInstreamIrrigation canals

Common Misperceptions

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Public Opinion

The public overwhelmingly supports hydropower

93% of the public believe hydropower should play an important role in meeting the nation’s electricity needs in the years ahead.

Recognized public benefits include:Renewable, climate friendly

Drinking water supplyRecreation

Domestic energy supplyFlood control

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Hydropower’s Potential Contribution in the U.S.

23,000 MW of NEW Hydropower is available by 2025

• 2,300 MW - from capacity gains at existing sites;

• 5,000 MW - from new hydro at existing non-powered dams;

• 2,700 MW - from new small and low-power conventional hydropower;

• 10,000 MW - increase from ocean and wave energy devices;

• 3,000 MW - increase from new hydrokinetic technologies.

Overall potential estimated at 85,000 MW to 95,000 MWdoubling hydropower’s current contribution

Recent Electric Power Research Institute (EPRI) Report

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Hydropower and Global Competition

A Survey of Hydropower Outside of the United States reveals . . .

• Significant Growth of Conventional Hydropower in Developing Countries;

• Commitment to Sustainable Deployment of New and Conventional Technology;

• Varying Levels of Government Support;

Canada . . . “Buoyed by the potential of tidal energy in the Bay of Fundy, the New Brunswick and Nova Scotia governments are jointly funding a study that will bring marine renewable power generation one step closer to a reality.” June 13, 2007

• Multilateral Support;

• Recognition of Hydropower’s Value in Climate Change Policy –Clean Development Mechanism;

• Fewer Regulatory Hurdles compared to US.

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Recapturing U.S. Global Leadership in Hydropower

To do so, Hydropower must be . . .

• Recognized for its broad applications, potential and contribution to U.S. emission and energy security goals;

• Treated equally with comparable technologies in federal energy and climate policy;

• Supported by comprehensive and ongoing research and development programs;

Some concrete recommendations . . .

• Extend the Production Tax Credit and CREBs for a period that minimizes renewal uncertainty and allows projects time to plan, license, procure and execute;

• Give conventional and new waterpower technologies parity under existing PTC (full credit value);

• Include incremental hydropower, hydro at non-powered dams and the new technologies in Renewable Portfolio Standard legislation;

• Define the regulatory process for new hydropower technologies – eliminate uncertainties;

• Study and map the impact of wave and tidal technologies on marine environments.

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Working Toward a Formula for Success

Range of Technologies+

Abundant Water Sites – wherever there is moving water+

Popular and Accepted with General Public+

(Clear and Supportive Policy & Regulatory Environment)+

(Research & Development funding)

=Hydropower as a Powerful Player in America’s Energy

Future

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Contact

Julie Smith-GalvinEnel North America, Inc.Julie.Smithgalvin@Northamerica.Enel.itwww.enelnorthamerica.com

Additional Resource:

National Hydropower Associationwww.hydro.org

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Questions