August 23, 2010
Hydropower may be green energy's forgotten cousin. But industry representatives are keen to push it hard now that the U.S. Congress is grappling with energy legislation. They say that hydro holds great potential, noting that despite being an emissions-free source only 3 percent of 79,000 U.S. dams are capable of producing such energy.
Producing electricity from dams is one way to increase the hydro sector's prominence. Generating power from smaller hydro units is another way. Such facilities are less disruptive environmentally but useful in supplying electricity to remote areas. All told, researchers say that almost 60 percent of the nation's water energy resources are potentially available for development using new technologies.
"Hydro is the original renewable energy source," says Duke Energy's Jim Turner, who spoke before a group of hydro executives. "Hydro has gotten lost in the race toward solar, wind and other currently popular green energy sources," says the executive who heads Duke's U.S. Franchised Electric and Gas business. "Yet, in fact, hydro represents a vast renewable energy resource that should not be ignored."
Renewable energy makes up less than 2 percent of this nation's generation mix. But if hydro is added to the equation, it comprises about 7 percent, or 100,000 megawatts. Beyond accessing the currently available water resources here, industry advocates also say that if Congress eventually places a limit on carbon emissions, then it would bode well for hydro.
The conventional way to produce hydroelectricity is through dams. But the amount of power is contingent upon the speed of the water that turns the turbines. Dams can increase the velocity by raising the water level. But they leave big footprints and can cause local populations to disperse. Investors, meantime, are skeptical because the permitting process is slow and costly.
Perhaps the most fruitful activity will come from so-called run-of-the-river facilities. They generate power by redirecting the river's flow using distributed hydropower units that include underwater watermills. While such technology is dependent on stream flow and access to power lines, it does not require the construction of dams that block water and kill off aquatic life.
Indeed, several hundred permits are now pending with the Federal Energy Regulatory Commission (FERC), with many of those being granted preliminary approval. Most of those would be run-of-the-river units.
A National Hydro Association study released this year says that hydro energy could increase by 60,000 megawatts over 15 years and thereby create 1.4 million new jobs -- if Congress gives it fair consideration. The states most likely to see the most job growth are Alaska, California, Oregon and Washington.
"Hydropower has been a critical source of renewable energy for Pacific Gas & Electric Company as part of a diverse portfolio of low-carbon sources of energy," says Pacific Gas & Electric Hydro Director David Moller and the vice president of the hydropower group, in a letter to Congress. "We support legislation that helps expand the use of hydropower in an environmentally responsible way."
Seed Money
That's the major hurdle. To build dams that can generate lots of electricity, local populations oftentimes have to be dispersed and damages occur to the ecosystem. Such projects can create huge lakes that harm sensitive streams and rivers while the dams can reduce oxygen levels in associated waterways. That limits the ability of migratory fish to spawn. In fact, a movement has been afoot in this country to destroy some existing dams so that salmon can lay eggs.
Certainly, hydro plants are widely criticized for their high costs both economically and environmentally. But the focus now is on upgrading and retrofitting existing facilities. To that end, Senator Lisa Murkowski, R-Alaska, has introduced two bills that aim to achieve the hydro association's growth targets over the next 15 years.
Specifically, the bills, which also had cosponsors from the Pacific Northwest, would direct the U.S. Department of Energy to provide the seed money for not just research and development but also the commercialization of hydropower. It would give FERC the ability to streamline the permitting process -- a necessary component, given that scores of existing dams must renew their operational licenses in the coming years.
A second measure would furthermore provide tax credits to builders as well as allow them access to clean energy bonds, all to raise the needed capital. The proposed legislation comes atop a memorandum-of-understanding released collectively by the Energy Department, the U.S. Department of the Interior and the U.S. Army Corps of Engineers to promote hydropower by identifying prospective hydro sites and encouraging the use of promising new technologies.
"We have an incredible amount of hydropower potential in my home state of Alaska, and elsewhere in the country," says Murkowski. "With the proper financing, we could keep a dozen hydro construction companies fully employed in Alaska ... Hydropower is one of our greatest untapped resources for generating clean, renewable electricity."
In Alaska, hydro supplies 24 percent of the state's electricity needs. Also, more than 200 other sites there look promising for further hydropower development.
Hydropower has an edge. It is clean and the technologies to improve performance exist. But if it is to expand its national footprint, though, its advocates must emphasize their commitment to sustainability before they raise funds or endorse new legislation.
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