Roundup of global small hydropower activity

Falls Village

Recently, I’ve seen and reported on significant news about small hydropower project (defined here as capacity of 30 MW or less) activity globally. What makes small hydro attractive?

The International Energy Agency said most small hydropower is operated in run-of-river mode, making it more environmentally friendly because it does not interfere with river flow. Small hydro also is often used for distributed generation applications and to provide electricity to rural populations. There is also significant remaining potential worldwide for development of small hydro.

This article provides a roundup of recent activity reported on (in just the past four months). This is some of the most popular and frequently viewed content on the Hydro Review website and you can view more small hydro news here. However, I acknowledge that the activity encapsulated below, and on the website, is only the tip of the iceberg when it comes to small hydropower movement worldwide.

The below overview reveals some interesting trends.

For example, recent small hydro news truly has been global, spanning Africa (Rwanda and South Africa), Asia (Bhutan, Nepal, Vietnam), Europe (Spain), North America (the U.S.) and South America (Peru).

In addition, activity related to small hydro has been varied, ranging from projects going online to power purchase agreements (PPA) signed. The largest recent activity has been around small hydro plants changing hands, which signals significant interest in owning these assets. From October 2023 to January 2024, Hydro Review reported on five separate acquisitions encompassing 12 small hydro plants.

Projects completed

In December 2023, Hydro Review reported on two completed and operational small hydro projects.

One was East Bay Municipal Utility District (EBMUD) in the U.S., which reported it had partnered with InPipe Energy to generate electricity from the flow of water in its water distribution system. The in-conduit hydroelectric system works like pressure-regulating valves in EBMUD’s water distribution system but uses a turbine to reduce water pressure while generating electricity. Installed in parallel with EBMUD’s Piedmont Regulator, InPipe’s in-conduit hydroelectric system will generate about 130,000 kWh of emission-free energy per year for use onsite.

Second, Flovel announced it had commissioned the 7 MW Upper Suri Khola hydropower project, on the Suri River in Nepal. The project was commissioned and synchronized to the grid in late November, and the plant was handed over to customer for commercial operation. The project is owned and operated by Makar Jitumaya Suri Hydropower Ltd. and is located in Gaurishankar, Dolakha District, Bagmati Province, Nepal.

Plants under construction

In October 2023, Druk Green Power Corporation Limited (DGPC) announced that construction of the 26 MW Druk Bindu hydropower project is officially under way, with a groundbreaking ceremony. The Druk Bindu project on the Bindu River in Tendu, Samtse, Bhutan, consists of two powerhouses, Druk Bindu 1 and Druk Bindu 2. It will be completed in two stages and is expected to be completed in three and a half years.

Development plans

In January 2024, Ocean Renewable Power Company Inc. (ORPC) has submitted a revised preliminary permit application to the Federal Energy Regulatory Commission for the Buffalo-Niagara Hydrokinetic Project. The site is on the Niagara River near Buffalo in Erie County, N.Y. It will feature a 5 MW river current power generation facility consisting of an array of river power devices installed at locations and depths that will not interfere with navigation. ORPC estimates that 60 RivGen Power System devices operating at velocities of 3.5 m/s would result in annual energy production of up to 42,050 MWh.

Plant acquisitions

In January 2024, Hydro Review reported on two acquisitions of small hydro facilities.

One involved Fortis Green Renewables, investing out of its Green Fund I, acquiring a “significant minority stake” of 40% in Rwaza Hydropower Ltd., a 2.6 MW operational run-of-river hydropower plant in Musanze, Rwanda. Fortis Green Renewables’ investment in Rwaza was completed via a full acquisition of project developer DC Hydropower Ltd. Rwaza (or Rwaza 1) began operations in early 2019 and provides power via a 25-year PPA with the Rwanda Energy Group.

The other consisted of Nexif Ratch Energy Investments Pte. Ltd. acquiring the 30 MW Minh Luong hydropower plant, a run-of-river facility with peak hour storage, in Lao Cai province, Vietnam. The plant, developed and constructed by seller Nam Tien Group, has been commercially operating since April 2018, with its electricity generation purchased by a subsidiary of state-owned electricity company EVN through a 20-year PPA.

In December 2023, investment house Ardian acquired 100% of a hydropower company in Perú, through its Ardian Clean Energy Evergreen Fund (ACEEF). Ardian will acquire the company from funds managed by investment bank BTG Pactual, Patria Investments and GMR Holding B.V. The company owns a portfolio of six small, run-of-river hydroelectric plants with a total capacity of 73.4 MW. The plants have energy purchase and sale contracts from the Peruvian Government that are denominated in US dollars and linked to inflation, with a remaining average life of about 10 years. The names of the plants acquired were not disclosed.

And in November 2023, Hydro Review reported on two small hydro sales.

One was the Nevada Irrigation District (NID) in the U.S. state of California acquiring the Deer Creek hydroelectric development from Pacific Gas & Electric (PG&E). The development includes the portion of the South Yuba Canal that brings its water from the mountains to customers in lower elevations, as well as Chalk Bluff Canal, the 5.7 MW Deer Creek Powerhouse, and all associated canals and facilities.

The other was Austrian energy service provider Kelag purchasing three small hydro plants in the province of Castellón in eastern Spain from Iberdrola. The agreement includes unnamed plants with a total installed capacity of 35 MW. However, this could be expanded in the future to include additional small hydro assets. Kelag manages around 100 hydroelectric power plants, as well as a range of hydropower purchase and subscription rights, with a total installed capacity of 1,500 MW in Austria.

PPA activity

In January 2024, Growthpoint Properties in South Africa entered into a PPA that included 30 GWh that will be generated annually by an unnamed 5 MW hydroelectric power plant developed, owned and operated by Serengeti Energy. The project is on the Ash River within the Lesotho Highlands Water Scheme (LHWS), in the Free State. The electricity will be used to power several commercial properties owned by Growthpoint.

A month earlier, Hydro Review reported that FirstLight announced a new PPA with the Massachusetts Municipal Wholesale Electric Company (MMWEC) to deliver hydropower to 14 municipal utilities in Massachusetts, U.S. Communities will purchase up to 69 GWh per year of hydroelectric power produced by FirstLight’s 28.9 MW Stevenson Generating Station and 8.4 MW Bulls Bridge Generating Station, both in Connecticut, and equivalent renewable energy credits. The agreement, runs from 2024 through 2029.

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