By Institute for Energy Research ——Bio and Archives--June 2, 2012
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“Hydroelectric dams alter riparian ecosystems profoundly. Birds fly into windmills. Geothermal and biomass plants are not emission free. Even solar generation is not beyond criticism. Yet environmentalists have become nearly as dependent on a steady supply of electrical energy as everyone else. What, then, is an environmentalist to do?”- Rich Ferguson, “Electric Industry Restructuring and Environmental Stewardship,” The Electricity Journal, July 1999, p. 27.
A strange thing happened to hydropower on its way to the sustainable energy ball: the party’s environmentalist hosts withdrew their invitation. Long a favorite of sustainable energy groups opposed to more traditional fuels . . . in the last 10 years environmentalists have turned on hydropower. . . . Suddenly hydro is being mentioned in the same breath with coal, oil and nuclear–precisely the fuels hydro, touted early on as an environmentally benign energy source, was to replace. Today environmentalists talk of ‘non-hydro renewables’ like wind, solar and biomass.[5]Jonathan Adler similarly noted:
In the late 1970s, hydropower was hailed as a clean, renewable source of power. Although environmental groups opposed many large dam projects, hydropower was praised as the wave of the future. No longer. Today hydropower is conspicuously absent from most lists of ‘green’ power. . . . Talk of new hydro projects, whether here or abroad, is verboten in environmental circles.[6]
Bargain-basement pricing of hydroelectricity at a time of rising energy costs sent the wrong signal to the consumer, encouraging waste and creating a voracious demand for electricity when conservation, not production, is the best energy investment. . . . The price of hydroelectric resources needs to reflect the fact that the world has entered a new energy era. [7]Such brings to mind the infamous statement of Amory Lovins in 1977:
If you ask me, it’d be a little short of disastrous for us to discover a source of clean, cheap, abundant energy because of what we would do with it. We ought to be looking for energy sources that are adequate for our needs, but that won’t give us the excesses of concentrated energy with which we could do mischief to the earth or to each other.[8]
Importantly, many of the monetary costs and environmental impacts of dam construction have already been incurred at NPDs [non-powered dams], so adding power to the existing dam structure can often be achieved at lower cost, with less risk, and in a shorter timeframe than development requiring new dam construction. The abundance, cost, and environmental favorability of NPDs, combined with the reliability and predictability of hydropower, make these dams a highly attractive source for expanding the nation’s renewable energy supply.But, he adds, the expiration of the tax credit threatens this too-good-to-be-true addition to renewable, emission-free capacity: “The industry says this is already starting to stifle development of new, innovative projects designed to “re-power” facilities and add to our hydro generation.” And guess what—federal overregulation is culpable too. “Another issue is permitting,” Lacey states. “In order to construct even the smallest projects, developers must work through the Federal Energy Regulatory Commission, U.S. Fish and Wildlife Service, Army Corps of Engineers, State Environmental Departments, State Historic Preservation Departments, and many more.” He adds:
Each of these agencies has an important role to play individually — but the cumulative impact weighs down small hydro and makes projects prohibitively expensive. According to one small developer, federal and state permitting adds up to $2,000 per kilowatt for projects under 1 MW. That’s two thirds of the total installed cost of a 1 MW solar PV system.This is the political season, and the scheduled expiration of the federal PTC can lead to a bit of (probably temporary) political correctness for hydropower. Still, it is a breath of fresh air to hear that “We have tens of gigawatts of hydro potential left to harness in this country, much of which can be done at existing facilities with minimal additional environmental impact.”
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The Institute for Energy Research (IER) is a not-for-profit organization that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets. IER maintains that freely-functioning energy markets provide the most efficient and effective solutions to today’s global energy and environmental challenges and, as such, are critical to the well-being of individuals and society.