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PLACEHOLDER FOR FULL PAGE IMAGE. Hydropower Industry Potential . “The country’s hydro resources are tapped out.”. Hydro Myths. “Development and stewardship are not compatible.” . “Hydro is not cost-effective.”. PLACEHOLDER FOR LARGE IMAGE. - PowerPoint PPT PresentationTRANSCRIPT
PLACEHOLDER FOR FULL PAGE IMAGE
Hydropower Industry Potential
PLACEHOLDER FOR LARGE IMAGE
Hydro Myths“The country’s
hydro resources are tapped
out.”
“Hydro is not cost-
effective.”
“Hydro is only available in
places like the Northwest.”
“Development and
stewardship are not
compatible.”
“All U.S. hydro plants are huge.”
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The Facts
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Hydropower is available – it is the largest source of renewable electricity generation in the U.S., and made up 7% of overall power generation in 2009.
Conventional Hydro 65.9%
Biomass 13.1%
Geothermal 3.7%
Solar 0.2% Wind 17.1%
Source: EIA
U.S. Renewable Power Generation, 2009
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Key Characteristics of the Hydro Fleet
Size (Capacity) Distribution of Currently Operating Units
The majority of hydropower facilities are small.
Only 3% of U.S. dams generate electricity – there is significant room for growth without building new infrastructure.Hydropower is generated in every region and benefits every state, employing up to 300,000 workers around the U.S.
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80,000 Dams Across the U.S.
Source: USACE, ORNL
pre 1900Build Time
1900 - 19291930 - 19391940 - 19491950 - 19691970 - 19891990 - 2008
19th Century HydropowerEarly 20th Century HydropowerDepression Era HydropowerWWII Hydropower ConstructionPost-War Hydropower DevelopmentLate 20th Century Hydropower DevelopmentHydropower Development since 1990The U. S. Hydropower Fleet
BUILDING THE FLEET
Sources: ORNL, NID 7
Hydropower Potential
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Hydropower can grow significantly without adding
new dams.
Conduit technolog
y
Modernizing
existing dams.
Converting non-
powered dams.
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Marine and
hydrokinetic
technologies.
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Future Capacity
Efficiency improve-
ment8,900MW
Non-powered dams
10,000MW
Greenfield sites
1,000 MW
Hydrokinetics 2,000MW
Ocean current 750MW
Pumped storage
24,000MW
Wave 9,000MW
Tidal 4,000MW
Source: Navigant Consulting
Hydro Capacity Growth by Technology
With the right policies in place, the U.S. could add 60,000 MW of new hydro capacity by 2025, the vast majority of which can be created without adding new dams.
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DOE/ORNL: Major Growth Opportunity
Non-Powered Dam Potential With Other RenewablesNon-Powered Dam Potential exists in areas with less than ideal wind and solar resources
Water availability, particularly for regulated rivers, is NOT correlated with wind availability (combined firming of capacity)Wind & Solar Maps: NREL
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1.4 million Potential Jobs by 2025
West 285,311North-
east 76,161
Southeast
49,450
Midwest 29,490
Southwest 8,339
Direct Jobs
West 135,386
Northeast 82,994
Southeast 20,423
Midwest 20,120 Southwest 4,119
Indirect Jobs
Cumulative Job Creation by 2025 under a 25% RES
Source: Navigant Consulting, 2009
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Hydropower Benefits
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Hydropower is clean and sustainable.
The hydropower industry is committed to better understanding and mitigating the impacts dams can have on local ecosystems and fish.
Hundreds of millions of dollars are invested each year in environmental enhancements at hydro facilities.
Using hydropower avoided approximately 196 million metric tons of U.S. carbon pollution in 2009 – equal to emissions from approximately 38 million cars.
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Hydropower supports the electric grid.
Hydropower is a flexible and reliable electricity source. Hydropower’s ability to dispatch power immediately makes it an essential back-up during major electricity disruptions.
“[During the blackout,] one relatively large island remained in operation serving about 5,700 MW of demand, mostly in western New York, anchored by the Niagara and St. Lawrence hydro plants.”— US-Canada Power System Outage Task Force report, 2005
Grid support services include Frequency Control ׀ Regulation ׀ Load Following׀ Spinning Reserve Supplemental Reserve׀
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Hydropower is an affordable, scalable form of energy
storage. The U.S. has more than 20GW of pumped storage capacity today, with facilities in every region of the country. Developers have proposed an additional 31GW.
Hydropower pumped storage is one of the few large-scale, affordable means of storing and deploying electricity.
Absorbs excess generation at times of low demand, and releases it during peak demand periods.
An excellent partner for intermittent renewable electricity sources.
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The National Landscape
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Hydropower has bipartisan, multi-region support.
Hydropower Improvement Act of 2011 – co-sponsors include Sens. Murkowski (R-AK) and Bingaman (D-NM) and seven other Senators, Republicans and Democrats.
H.R. 795, the Small-Scale Hydropower Enhancement Act was introduced by Rep. Adrian Smith, had bipartisan co-sponsorship, and passed out of the House Natural Resources committee unanimously.
Incentives for hydropower and marine and hydrokinetic technologies championed by both parties.
Consensus in the 111th Congress for inclusion of hydropower in various policies.
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Bipartisan support
“With thousands of existing dams currently not creating any power,
existing dams in need of upgrades, and new technologies being
developed to safely capture river currents, an additional 60,000 more megawatts is achievable
within the next 15 years.” – House Natural Resources Committee
Ranking Member Ed Markey (D-MA)
“In today’s environment – where talk centers on the need
to provide clean and environmentally friendly
energy – we must continue to promote and expand the use of hydropower.” – House Natural
Resources Committee Chairman Doc Hastings (R-
WA) “Hydropower is one of our greatest untapped resources for
generating clean, renewable electricity.” - Senate Energy
and Natural Resources Committee Ranking Member
Lisa Murkowski (R-AK)
“There’s no one solution to the energy crisis, but hydropower is clearly part of the solution
and represents a major opportunity to create more
clean energy jobs.” – Energy Secretary Steven Chu
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Hydropower projects are underway around the country, bringing new jobs and low-cost
electricity to many states.
PLACEHOLDER FOR LARGE IMAGE
Hydro Projects Waiting in Line
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Applications/Exemptions Filed: 46 projects, 3,000+ MW, 27 states
Preliminary Permits Issued: 374 projects, 44,000+ MW, 44 states
Preliminary Permits Pending: 302 projects, 37,000+ MW, 29 states
The FERC Pipeline
Tops 85,000 MW across 722
projects
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Hydropower Priorities
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Helping the U.S. meet renewable energy goals.
NHA supports a CES goal of generating 80% of America’s electricity from clean and renewable energy – a goal achievable only with a significant role for hydropower.
Meeting that goal requires:A more efficient
regulatory process
Economic incentives to support project development
A national clean and renewable electricity standard
Research and development
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The Regulatory Process
HydroRegulatory
Process
Hydropower development
involves a comprehensive but
sometimes redundant regulatory
approval process that needs better coordination and
cooperation between participants.
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Making the regulatory process more efficient includes:
Facilitating private hydropower development on Army Corps of Engineers and Bureau of Reclamation Facilities
An expedited licensing process for hydropower development at non-powered dams and closed loop pumped storage projects, that takes no more than two years.
Support for small hydro and conduit power developers, so that the regulatory process provides assistance and is not a disincentive to project development.
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Economic Incentives will speed development.
Equalizing the production tax credit for hydropower. Currently hydropower receives only half the credit available to other renewable energy sources.
Allowing energy storage, specifically pumped hydro storage, to qualify for the ITC and CREBs (Clean Renewable Energy Bonds) Program. Expanding our nation’s energy storage capacity is essential to ensuring a secure and stable grid as well as integrating more renewable energy.
Straightforward updates to existing renewable energy tax credit programs should be enacted:
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Long term extension of existing programs such as the PTC and ITC is needed, along with additional funding for oversubscribed programs such as CREBs and the 48C ITC for renewable energy equipment manufacturers.
Hydropower project development can have high upfront costs and long lead times. Though cost-effective over the life of the project, utilities, developers and investors need certainty.
NHA strongly supports existing renewable incentives:
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A Clean and Renewable Electricity Standard
Existing hydropower generation should be counted if generation from other clean resources qualifies (wind, nuclear, etc.) Hydropower should be treated equitably in comparison to other existing resources.
Energy storage, specifically pumped hydro storage, will play a critical role to firm and integrate intermittent resources and increase their contribution to the CES goal. The CES should include a mechanism to provide recognition of clean generation from pumped storage projects – both existing and new.
A Clean Energy Standard is a different policy paradigm than the Renewable Energy Standard. As such, the treatment and recognition of hydropower must be re-evaluated. That includes:
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Research and Development
President Obama’s proposed FY 2012 budget increases DOE spending for all types of renewable energy with the exception of the Water Power program, with a proposed budget reduction of over 20%.
Congress must continue to invest, not retreat, on R&D funding for the next generation of hydropower and MHK technologies to achieve the country’s vision for clean energy deployment.
As the Congress debates budget
priorities, funding for hydropower R&D
remains imperative.
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Linda Church Ciocci, Executive Director, National Hydropower [email protected]. 202.682.1700
Ryan Cunningham, Senior Vice President, Glover Park [email protected]. 202.295.0164
Roger Ballentine, President,[email protected]. 202.328.1123
Contacts