Dana Hall, LIHI Deputy Director

Hydropower’s Place in a

Clean Energy Future

About the Low Impact Hydropower

Institute (LIHI)

Purpose:• To establish ”low

impact” criteria for characterizing hydropower facilities

• To conduct a program to certify facilities that meet these criteria

• To inform consumers about the environmental effects of power generation

2Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Hydropower’s Place in a Clean Energy

Future

Presentation order:

1. About Low Impact

Hydropower

Certification

2. DOE Hydropower Vision

Report

3. Hydropower’s Value

and Role

3Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

LIHI Governance – minimum 50% NGO

representation

4Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Current LIHI Board and Advisors NGO representation

LIHI Board and Advisors also represent:

• Government agency/ federal labs

• Hydropower industry and related services

LIHI is a National Program

5Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

124 certifications, ~170 dams, 23

states.

Total capacity = 4.4 GW.

LIHI Certification is not only for small

projects…

6Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Low Impact Criteria

Criteria:1. Flow regimes

2. Water quality

3. Fish passage and protection

4. Downstream and Upstream

5. Watershed protection

6. Threatened and endangered species protection

7. Cultural resource protection

8. Recreation

New Features in 2016 update:– Menu of alternative standards

– Very Low Impact (VLI)

– PLUS - extra years can be earned

7Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Pass/Fail basis

- all Criteria

must be

satisfied

www.lowimpacthydro.org/criteria

LIHI Eligibility

Existing (and some new) US Resources:

• Facilities of all ages may apply

• Generation installed on dams constructed prior to 8/1998 – New capacity and incremental additions AFTER 8/1998

are eligible

Ineligible for LIHI Certification:

• Facilities outside the United States

• Marine Hydrokinetic projects

• Pumped Storage

• Facilities on dams constructed after August 1998

• Facilities on dams recommended (by resource agencies) for removal

8Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

www.lowimpacthydro.org/eligibility

Eligibility is

reviewed

periodicall

y

Hydropower’s Place in a Clean Energy

Future

Presentation order:

1. About Low Impact

Hydropower

Certification

2. DOE Hydropower Vision

Report

3. Hydropower’s Value

and Role

9Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

DOE Hydropower Vision Report

• The Hydropower Vision report was issued by DOE in July, 2016

• Developed over a 2-year period in collaboration with a wide-range of hydropower stakeholders (more than 300 experts from over 150 organizations)

• LIHI contributed to the Vision by serving on task forces and providing review comments

• The following text and figures have been excerpted from the DOE published report

10Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Hydropower Vision Report Objectives:

• Characterize the current state of hydropower;

• Identify ways for hydropower to maintain and

expand its contributions through 2030 and

2050;

• Quantify benefits that can be realized

through a range of potential scenarios;

• Develop a roadmap identifying stakeholder

actions to expand potential and realize the

Vision.

11Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

Cumulative U.S. hydropower capacity

(GW), 1890–2015

12Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

Hydropower’s Future Potential and The

Way Forward

Key drivers:

1. technology innovation to reduce cost

2. improved market lending conditions

3. concurrent influence of environmental considerations

• Improved market structures and compensation mechanisms

• New technology /greater operational flexibility

13Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

Modeling Hydropower’s Contribution

and Future Potential

• National Renewable Energy Laboratory’s (NREL’s) Regional Energy Deployment System (ReEDS) model

• Hydropower resource opportunities for potential growth fall into four distinct categories:– Upgrades to existing power plants and dams

– New power plants at existing non-powered dams (NPDs)

– New stream-reach development (NSD)

– New and existing pumped-storage hydropower (PSH)

14Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

US non-powered dams with potential

capacity greater than 1MW

15Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: ORNL Hydropower Resource

Assessment,

http://energy.gov/eere/water/hydropower-

resource-

assessment-and-characterization

NSD potential by subbasin

16Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: ORNL Hydropower Resource

Assessment,

http://energy.gov/eere/water/hydropower-

resource-

assessment-and-characterization

Cumulative 2050 deployment of new

hydropower generation capacity

17Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

ReEDS modeled - by resource category (GW)

Source: DOE Hydropower Vision Report 2016

Selected Scenarios for ReEEDs modeling

18Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

Modeling Results for Selected Scenarios

19Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

Pumped Storage – Growth Potential

20Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

PSH and Variable Generation

21Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

NSD challenge is to balance efficiency,

economics and environmental

sustainability

22Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

Economic and environmental benefits

23Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

The Way Forward:

The Hydropower Vision Roadmap

• Optimization: Investment in technology advancement, modernization, and environmental performance to ensure that the existing wide range of high-value, multi-use benefits of the hydropower fleet do not diminish.

• Growth: Development of the next generation of hydropower facilities, and a trained workforce to support them, that leverage untapped infrastructure, technology advancement, plant modernization, improved environmental performance, and cost reduction pathways.

• Sustainability: Ensure that environmental objectives are incorporated throughout the full hydropower facility life cycle.

24Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Source: DOE Hydropower Vision Report 2016

DOE Hydropower Vision Report

Useful Links: Hydropower Visionor search for: “DOE EERE Hydropower Vision”

Blog on Report

Blog on Pumped Storage

Press Release

Hydropower Vision Executive Summary

$9.8 million FOA

25Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Hydropower’s Place in a Clean Energy

Future

Presentation order:

1. About Low Impact

Hydropower

Certification

2. DOE Hydropower Vision

Report

3. Hydropower’s Value

and Role

26Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

How is hydropower currently valued?

27Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

• Hydropower continues to provide a level amount of supply as

emitting sources are reduced and non-hydro renewables increase

• DOE Vision anticipates almost 50 GW of new incremental hydro

could be possible by 2050

• As a dispatchable resource, hydropower provides market services

that are unique among non-emitting generation sources

Source: Source: U.S. Energy Information Administration, Electric Power Monthly., June 2012

Hydropower and grid stability

• Aging systems means increased extended

forced outages are possible

• New market constructs can provide greater

reliability and ancillary services (sub-hourly

markets)

• New resources additions: variable resources

will require additional regulation, load

following, and ramping responses

• Stream flows: Long term impact of climate

change?

28Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Hydropower and grid stability – new

solutions?

• Hydropower operational constraints– New biological opinion requirements may reduce

capability or flexibility (flow requirements)

• Yet, hydropower can deliver a wide range of energy values, depending on project characteristics – Greater stored water and operational flexibility

means greater, more value

• Environment requirement can affect that ability by limiting operational flexibility

• Smart design and operation can find win-win outcomes

29Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Hydropower tax incentives

30Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Hydropower Wind Solar

Investment Tax Credit (ITC)

30% ITC in lieu of the PTC expires on 12/31/2016

30% ITC in lieu of the PTC expires on 12/31/2019;

30% ITC for commercial and residential solar property which begins construction as of 12/31/2019 Reduces to 26% in 2020, and 22% in 2021. Permanent 10% ITC thereafter. Total Revenue Cost: $9.338 billion

Production Tax Credit (PTC)

Yes Expires 1/1/17

half-credit ($.011/ kWh)

Yes Expires 1/1/20

Credit rate ($.022/kWh)

reduced by 20% in 2017, 40% in 2018, 60% in

2019

N/A Opted out in 2005 with 30%

ITC

Renewable Energy CreditsClass I Prices Jan 2010 – Mar 2016

31Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Pennsylvania hydro and the AEPS

market

• Low-impact hydro qualifies for AEPS under Tier 1

($15/REC)

– Only up to 21 MW. Over 21 MW is qualified under Tier II

($2/REC)

• All generators within PJM-GATS states can sell into

PA RPS

• Holtwood: entire facility certified by LIHI – but only

a portion of generation is Tier 1

• Mahoning Creek– smaller project, LIHI Certified,

Tier 1

• York Haven (19 MW)

• Safe Harbor (380 MW, now applying for LIHI)

• More projects applying on the Ohio River

32Hydropower's Place in a Clean Energy Future, Dana Hall, LIHI Deputy

Director

Dana Hall, LIHI Deputy Director

Thank you!!