HYDROPOWER
Jan 03, 2016
Objective:
• The student will be become familiar with the Corps policy for hydropower development.
• The student will be have a basic understanding of economic evaluation concepts.
Hydro 13%
Nuclear 14%
Gas Turbine 5%
Fossil Steam 62%
Other6%
Corps of Engineers 24%(21,000 megawatts)
Bureau of Reclamation 16%
Tennessee Valley Authority 6%
Commercial 3%
Others 51%
The Corps has an $18 billion investment in hydropower facilities.
Generates $2 - $3 billion in annual revenue
Big Business!!
US Sources of Electrical Power
Hydropower Statutes
• River and Harbor Act of 1912
• Flood Control Act of 1917
• Federal Water Power Act of 1920
• Flood Control Act of 1938
• Flood Control Act of 1944 (Section 5)
• Water Resources Development Act of 1976
• Water Resources Development Act of 1986
Hydropower Guidance
• ER 1105-2-100, Planning Guidance
• EP 1165-2-1, Digest of Water Resources Policies and Authorities
• EM 1110-2-1701, Hydropower Manual
• ER 1110-2-1454, Corps Responsibilities for Non-Federal Hydroelectric Power Development
Hydropower Considerations
• Consider hydropower only in multipurpose projects when non-Federal development is impractical
• Encourage non-Federal development since hydropower is a marketable commodity
• Feasibility studies are 50/50 cost shared• Construction is 100% non-Federal cost paid up front• Consult Federal Energy Regulatory Agency and
Federal Power Marketing Agency• Most Common HP Activities are Major
Rehabs and WS Reallocations
Hydropower BenefitsOverall Approach
• NED power benefits normally based on cost of the most likely thermal alternative
• Call for help:• Design: Brent Mahan 503-808-4200
(Hydropower Design Center)• Benefits: Russ Davidson, NWP, 503-808-4222
(Hydropower Analysis Center)• HQ-BLM: Kamau Sadiki, 202-761-4889
Alternative Thermal Plants
• Base load (20-24 hours per day)– coal fired steam– nuclear
• Intermediate load (4-10 hours per day)– cycling coal– combined cycle
• Peaking/reserve (< 4 hours per day)– combustion turbines
Capacity Value
• Fixed costs associated with the increment of alternative thermal power plant capacity that would be displaced by the hydro plant
• Primarily construction costs but also includes fuel inventory and fixed O&M costs– Unit Value is ($/MW-yr)– MW of Installed Capacity
• Developed by FERC and Hydropower Analysis Center (NWP)
Energy Value
• Variable costs associated with the thermal power plant generation displaced if the hydro plant is added to the system instead of the thermal alternative
• Primarily fuel costs, but includes variable O&M costs– Unit Value is $/MwH– MwH/yr of annual energy
• Usually Done With System Production Cost Model– Developed by Hydropower Analysis Center– PLATTS
System Production Cost Analysis
• Define the system demand– Usually done by working with regional PMAs and Utilities
• Define the generating resources needed in each hour to meet the demand– Done with optimizing production cost models assuming the
lowest cost resource mix will be used to meet demand
• Estimate the system cost of production in without project condition
• Estimate the system cost of production in with project condition
• Compare system costs in without and with condition
System Production Costs Analysis - Considerations
• Data intensive – Must account for system load demand and all generating resources for every hour of the year over period of analysis
• Beyond the scope for most Districts, so call the Hydropower Analysis Center (HAC)
HP Challenges
• Aging infrastructure
• Major Rehabilitation
• Up-Rate potential
• Alternative financing
• Competition with WS and other purposes