Michael Harris, Online Editor, HydroWorld.com
August 15, 2012
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A legislative field hearing held on the recently proposed "Saving Our Dams and Hydropower Development and Jobs Act of 2012" provided an opportunity for witnesses to explain the bill's benefits.
The act -- officially known as House Resolution 6247 -- was introduced by House Natural Resources Committee Chairman Doc Hastings (R-Wash.) earlier this month and would "protect America's dams and promote new clean, low-cost hydropower to help create jobs and grow the economy."
The field hearing was held this week in Pasco, Wash., where 70% of the state's power comes from hydroelectric sources, though Hastings says the legislation would be beneficial nationwide.
"The bill I introduced two weeks ago shines a bright light on the enormous benefits and potential of federal and non-federal hydropower dams, both in the Northwest and across the nation," Hastings says. "The bill, as with all legislation, is a starting point for discussion and contains common sense actions to protect this renewable energy source."
Amongst its myriad measures, H.R. 6247 emphasizes that it would not only provide energy for millions of Americans, but also provide water for irrigation, protect navigable waters, generate non-federal funding for new projects, diminish regulatory red-tape, and improve transparency.
"H.R. 6247 offers a very different future for our nation," says Tom McClintock (R-Calif.), Chairman of the Subcommittee on Water and Power. "It envisions a future in which families can enjoy the prosperity that plentiful water and electricity provides."
A number of other witnesses also spoke on the bill's behalf, saying:
Hastings' bill follows close behind the Hydropower Regulatory Efficiency Act of 2012 (H.R. 5892), which passed the House with a unanimous 372-0 vote in July.
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In Canada, comps are Ontario (22% renewable) and Quebec (96%) with generally similar conditions. Electricity is 75% more expensive in Ontario. Doing the math - non-renewable power, including nuclear, is approximately twice as expensive as hydro, on average - not including externalities.
Realistically, it's not all rosey as hydro has it's impacts, as do most human activities; however, many of them can be mitigated at relatively low cost. Since hydro is very affordable, those costs should not be an impediment (although lack of regulation may be).
The basic economy of renewable energy is that there is substantial capex over a relatively short term but a very low run-rate over the long term, mostly unaffected by external factors. This leads to great cost certainty and market stability which are good things. The weakness in this is that LCOE is highly dependent on cost of borrowing. For emerging renewable technologies, bankability is a major impediment. On the other hand, technologies like wind and solar have much shorter timelines than hydro where hydro suffers from being a protracted investment. However, hydro power can be seen as representative of what can be expected from emerging renewable technologies when the reach maturity i.e. dependable low-cost energy. It can be instructive to look at the LCOE of hydro electric power in constant dollars over it's history as today is the future of a once emerging technology.