Hydroelectric power has played an important part in the development of the electric power industry in the U.S. Growing populations and modern technologies require new amounts of electricity for creating, building, and expanding the economy. In the 1920's, hydropower supplied about 40 percent of the electric energy produced and presently supplies about 10 percent of the total electrical generating capacity of the United States.

Hydropower currently provides about 96 percent of all the renewable energy in the U.S. Hydroelectric power plants do not use up resources to create electricity nor do they pollute the air, land, or water, as other power plants may and was truly the first industrial scale renewable energy source. Hydropower is also an essential contributor in the national power grid because of its ability to respond quickly to rapidly varying loads or system disturbances, which base load plants with steam systems powered by combustion or nuclear processes cannot accommodate.

The Electric Power Research Institute (EPRI) recently published a report which revealed the potential of water energy to the U.S. renewable energy supply. As a part of the EPRI study, investigators reviewed conventional hydroelectric plants and the new technologies using energy from tides, ocean waves, and currents. EPRI estimates that 23,000 MW of additional capacity could be brought online by 2025. Sunton firmly believes that hydroelectric power development will continue to play an important role in our energy economy as research and development improves efficiencies and reduces the environmental impact of such projects.

Legislative Changes

Comprehensive energy legislation was enacted on Aug. 8, 2005 as the Energy Policy Act of 2005 (EPAct 2005). The U.S. government clearly recognized hydropower’s importance to the country as a domestic source of renewable, climate-friendly, and affordable energy when they addressed the two largest issues as a part of this legislation; the challenging licensing process and the lack of significant growth in the industry during the last decade.

The law brings important new reforms to the Federal Energy Regulatory Commission’s (FERC) hydropower licensing process and helps to ensure environmental standards for rivers in the country are maintained. It also includes several provisions to help encourage the growth of hydropower generation. Incremental hydropower (new energy at existing facilities through additions of capacity and efficiency improvements) and “qualified” (run-of-river hydropower at existing FERC-licensed non-hydropower dams) are now eligible for a production tax credit (PTC) for renewable energy. A ten-year tax credit of 0.9 cents per KwH is now available for new hydropower projects and a new category of tax credit bonds is now available for non-tax paying hydropower generators. Incremental hydropower is now included in the federal power purchase program for renewable energy. This program requires the federal government to purchase a certain percentage of its electricity from renewable energy sources.

With these new legislative incentives, Sunton believes that the time is ripe for additional and environmentally responsible low-head hydro project development.

Opportunities

Sunton’s interest in the hydroelectric energy sector includes: 1) joint development opportunities with public utilities, government agencies, communities, and/or private interests to identify and develop viable hydroelectric sites; and, 2) to foster the development of new hydroelectric technologies that minimize the ecological impact of hydropower development.

If you know of a potentially viable hydroelectric development site, have an idea of how to harness the power of falling water in a unique or innovative way, or if you are on the cutting edge of developing new hydropower technologies, we encourage you to submit your proposal by clicking on the link below.


Hydroelectric Power Industry Links:

International Hydropower Association
Hydro Research Foundation
US DOE Energy Efficiency and Renewable Energy
Energy Information Administration – Hydro
Federal Energy Regulatory Commission

CLICK HERE TO SUBMIT YOUR OPPORTUNITY