National Hydropower Association an Overview of Hydropower
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Available. Reliable. Affordable. Sustainable. National Hydropower Association An Overview of Hydropower NASEO 2018 Western Regional State and Territory Energy Officials Meeting April 3-4, 2018 1 Available. Reliable. Affordable. Sustainable. Presentation Overview • About NHA • Current state of hydropower • Growth potential • Benefits – climate, environmental, grid reliability • Federal and state policy, market and valuation challenges • Q&A 2 Available. Reliable. Affordable. Sustainable. 3 Available. Reliable. Affordable. Sustainable. Current state of hydropower 4 Available. Reliable. Affordable. Sustainable. 5 Available. Reliable. Affordable. Sustainable. Wind surpassed hydro in capacity in 2016. 6 Available. Reliable. Affordable. Sustainable. Hydro still top generator of RE power. 2018 Sustainable Energy Factbook. Bloomberg Finance LP 2018. Developed in partnership with The Business Council for Sustainable Energy. P.25 7 Available. Reliable. Affordable. Sustainable. RE comparisons Total renewable capacity has nearly doubled since 2008, reaching 239GW in 2017 (excluding pumped hydro). Nearly all the growth has come from wind and solar, which together jumped 471% during that period while other technologies held flat, in part due to weaker tax policy support. Wind and solar have also benefited from state-level renewable portfolio standards (RPS) and rapidly declining system costs. Wind capacity overtook hydropower for the first time in 2016, and extended its lead to 10.6GW in 2017 from 3.4GW the year prior. Hydro generation experienced a large rebound in 2017, leaping 13% year- on-year to 303TWh. This is up 22% from 2015, the last year before the West Coast’s record-breaking drought began to ease. 2018 Sustainable Energy Factbook. Bloomberg Finance LP 2018. Developed in partnership with The Business Council for Sustainable Energy. P.25 8 Available. Reliable. Affordable. Sustainable. Map of Hydro Resources https://www.hydro.org/map/hydro/ 9 Available. Reliable. Affordable. Sustainable. Growth Potential 10 Available. Reliable. Affordable. Sustainable. DOE Hydropower Vision With NHA as the lead partner, DOE issued a first-of-its kind report in 2016 of hydro’s contributions to the nation’s energy portfolio as well as its future growth. Hits the reset button on hydropower. The Report finds upwards of 26 GW by 2030 and almost 50 GW by 2050. https://energy.gov/eere/water/articles/ hydropower-vision-new-chapter-america-s -1st-renewable-electricity-source 11 Available. Reliable. Affordable. Sustainable. 12 Available. Reliable. Affordable. Sustainable. 13 Available. Reliable. Affordable. Sustainable. DOE Hydropower Market Report 2017 update. Sources: FERC, Reclamation LOPP database, HydroWorld, and web searches. 14 Note: Map only includes projects with a capacity greater than 0.1 MW. Available. Reliable. Affordable. Sustainable. 2016 Snapshots Authorization pathways: • FERC original license or exemption (193) • “Qualifying conduit” determination from FERC (37) • Lease of power privilege from Reclamation (12) 2016 permitting activity highlights: • FERC issued 44 preliminary permits, 11 licenses, and 2 exemptions. • 7 projects > 0.1 MW obtained “qualifying conduit” determinations. • Bureau of Reclamation issued 2 preliminary leases of power privilege. Number of issued preliminary permits in 2016 was almost double than 2015 and number of issued licenses/exemptions similar to 2015. At least 17 projects (93 MW) were under construction at the end of 2016. At least 9 projects (225 MW) reached commercial operation in 2016. • Most of the new capacity (211 MW) is located at 3 Corps dams developed by American Municipal Power in the Ohio River. 15 Available. Reliable. Affordable. Sustainable. 16 Available. Reliable. Affordable. Sustainable. 2016 Snapshots There were 38 projects in the development pipeline at the end of 2016. • 32 at early stages in which feasibility studies are being performed. • In January 2017, there was an uptick in preliminary permit applications with 21 new applications; most of them in PA by a single developer. The regional distribution of proposed projects has changed from the previous year: numbers have decreased in the SE and increased in the NE. • Four projects have pending license applications (Mineville, NY; Swan Lake, OR; Parker Knoll, UT; Lake Powell, UT). • Two licensed projects have not started construction. Gordon Butte (MT) and the Eagle Mountain project (CA). It was allowed to extend the deadline to commence construction to June 2018. • The Sacramento Municipal Utility District (SMUD) announced it would not pursue the licensed Iowa Hill project citing increased cost and financial risk estimates. 17 Available. Reliable. Affordable. Sustainable. Benefits: climate, environmental, and grid reliability 18 Available. Reliable. Affordable. Sustainable. Climate, environmental benefits DOE Hydropower Vision Report 19 Available. Reliable. Affordable. Sustainable. Grid reliability and resiliency benefits Hydropower is a premiere flexible generating resource. Unlike any other generating resource, hydro can provide all components of reliability, including: energy, peak capacity, voltage support, regulation, spinning and non-spinning reserves, storage, black start capability, and inertia. Energy - flows can vary, but hydro is a reliable resource that produces energy throughout the year. Electric power systems use hydro to both avoid building new generation and reduce the use of existing fossil resources. Peak Capacity - hydro systems are generally built to take advantage of high streamflows and hence have available capacity that can be called upon at virtually no additional cost to meet system peaks due to low or high temperatures. Meeting these extreme events is one of the most significant costs for any electric power system. Slides 19-22 developed from House Energy and Commerce testimony of Steve Wright, General Manager of Chelan 20 County PUD. October 2017 Available. Reliable. Affordable. Sustainable. Voltage Support and Reactive Power - reactive power is necessary to keep voltage at levels needed to maintain reliability under a wide range of conditions. Hydro generators are well suited to maintain system voltage, providing substantial increase or decrease as required. Some hydro units can produce reactive power even when not producing power (MWs). Regulation - to preserve grid reliability, supply and demand must remain in balance – not only hour to hour, but second to second. Hydro projects are best suited to provide this service because it can be accomplished merely by allowing more water to pass through turbines using automatic generator control or simply by relying on the large inertia of the machines. Spinning Reserve - On a sub-hourly basis, generating units are maintained in a “spinning” status ready to rapidly react to unanticipated increases in load or decreases in generation. Spinning reserves respond as fast as 10 seconds and up to 10 minutes and stabilize system frequency during emergency operating conditions and unforeseen load swings. Because hydro projects generally have multiple turbines that are not fully loaded, it is a 21 natural fit to supply reserves, including over extended periods of time. Available. Reliable. Affordable. Sustainable. Non-spinning Reserve - non-spinning resources are units that are able to quickly turn on and provide power in less than 10 minutes, maintaining output for at least two hours. Hydro can also provide this service using less than fully loaded turbines. Storage - Many large hydro projects can provide storage capability through the use of reservoirs, providing opportunities to better balance loads and generating resources. Pumped storage is particularly well positioned to reduce curtailment of excess generation by providing load (to pump water uphill), energy storage in the upper reservoir, and generation. These units can rapidly increase generation or load as needed for grid stability and economic efficiency. Black Start Capability - During outages, hydro can help restart the power system without support from the transmission grid, enabling other generators to come online. Hydro can normally be operational very quickly to support grid restoration and generally have adequate fuel supply (the reservoir), and can provide a sustained response. 22 Available. Reliable. Affordable. Sustainable. Inertia - hydro units are also a source of inertia that is important for avoiding widespread blackouts. Inertia provided by the large rotating mass of traditional generators has historically stabilized the Western Interconnection’s frequency by slowing frequency decline and, with the help of power system stabilizers, dampening the cascading oscillations that can occur when there is a disturbance (such as the sudden loss of large generation). Hydro resources have a lot of mass providing significant inertia. Flexible Capacity - As the grid becomes increasingly reliant on variable energy resources, there is an increasing need for flexible capacity that can respond, given the production uncertainty of resources, such as wind and solar. Many hydro projects are flexible enough to move generation around during the day to provide a dispatchable generation to assure loads and resources stay in balance. Unlike fossil resources, hydro can be available to respond to change in net load (load minus variable energy resources) without burning fuel to be kept in a ready state. 23 Available. Reliable. Affordable. Sustainable. 24 Available. Reliable. Affordable. Sustainable. Federal and state policy, market,