POWER October 2014 - 60

RENEWABLES
pared to a new project, there are also some
new challenges. As Ralph Watt, MWH's
project manager for RRHP explained to
POWER, the Red Rock Dam was built
primarily for flood control, with recreation
as an additional benefit. " One of
the major challenges was to construct the
facility without having any impact on the
existing operation, " he said. Because of the
demands of flood control operations, the
water level at Red Rock can fluctuate up
to 40 feet through the course of the year,
meaning the construction site is sometimes
completely dry and sometimes flooded. " It
changes all the ways you would approach
building the project. "
Like many other potential projects, RRHP
is being built at a USACE dam. " That adds
another level of regulatory scrutiny, " Watt
said. " In design and construction of these facilities,
we had to make sure that we satisfied
the Corps of Engineers concerns and requirements
when it comes to any impact we might
have had on their structures. "
Those concerns may be getting some
revision. In July, the USACE updated its
policy guidance on requests to modify
USACE-owned facilities under Section 408.
In it, the USACE says that " USACE and
[the Federal Energy Regulatory Commission
(FERC)] have agreed to work with each
other and with other participating agencies
or entities, as appropriate to ensure that
timely decisions are made and that the responsibilities
of each agency are met. " The
updated guidance extends not just to conventional
hydropower projects but also to
" non-conventional " facilities such as hydrokinetic
generation (which relies on natural
flow rather than a hydraulic head) that could
be added to jetties, levees, and navigational
channels.
Other policy support may be on the way
was well. In 2011, the Obama Administration
launched the Federal Infrastructure
Permitting Dashboard, which is designed
to expedite the licensing process for critical
infrastructure projects " that will create
a significant number of jobs, have already
identified necessary funding, and where
the significant steps remaining before construction
are within the control and jurisdiction
of the federal government and can
be completed within 18 months. " While the
list includes several wind and solar generating
facilities, RRHP is so far the only hydropower
project to receive such expedited
review. Hydropower backers are hoping the
success of RRHP will lead to others.
Hydro Is Still Big
None of this is to suggest that the days of Big
Hydro are over, even in North America.
60
Quebec, which gets a whopping 96% of
its electricity from hydropower, is still looking
to add capacity. Hydro-Québec's fourunit,
1,550-MW Romaine project is partway
through full commissioning, with Unit 2
scheduled for service this year, and the remaining
units expected to be complete by
2020. Equipment for the two largest units, 2
and 3, is being supplied by Alstom. Upgrade
projects to add capacity at several older facilities
are also under way.
The Romaine project has been controversial
in part because it may prove to be a
money loser. Hydro-Québec earns substantial
income from exporting electricity to customers
in the northeastern U.S., but with the
shale gas boom having depressed wholesale
power prices across the region, it is not clear
if Romaine will ever earn enough money to
pay for itself.
Out west, BC Hydro is still pushing forward
with the Site C project on the Peace
River in northeast British Columbia. The
proposal, which has been in the works for
more than 30 years, is projected to generate
1,100 MW. The plan is still in the permitting
process, but BC Hydro hopes to have it online
by 2024. This project as well is facing
stiff opposition, much of it from First Nations
groups concerned about lost farmland
and fishing grounds.
Storage Wars
Perhaps the biggest growth area for North
American hydro is pumped storage, Finis
said. " One of the great drivers for these projects
is going to be the integration of renewable
energy resources. "
In terms of storage options, pumped storage
hydropower reigns supreme in terms of
how much capacity it can add to the grid with
existing technology. That means big potential
in areas with a lot of renewable capacity being
added.
" We are seeing quite an interest in development
of storage projects right now in the
U.S., " Finis said.
One of those projects is taking shape in
Northern California. The Sacramento Municipal
Utility District (SMUD) is conducting
feasibility testing for a 400-MW pumped
storage facility that would be added to its
existing Upper American River Project near
Lake Tahoe. The Iowa Hill plant would add
a storage pond 1,200 feet above a bend in
the existing Slab Creek reservoir. The $800
million project could begin construction as
soon as 2018 if SMUD decides to proceed.
An even larger pumped storage project is
planned for Southern California, on the site
of an old iron mine near Joshua Tree National
Park. The 1,300-MW closed-loop facility
would convert the old mining pits into storwww.powermag.com
age
reservoirs. GEI Consultants is leading
the project for Eagle Crest Energy Co. FERC
gave the project a license to proceed in July
after state water quality officials approved
the plan in 2013, but roadblocks remain. In
particular, the effect on area water resources
from filling the over 17,000-acre-feet project-the
plan is to use groundwater drawn
from nearby wells-is sure to be controversial
in the midst of one of the worst droughts
in California's history. If completed, it would
be the fifth-largest pumped storage facility in
the U.S.
No Silver Bullet
Despite the advantages, getting backers for
hydropower projects in the current environment
can be tricky, Finis acknowledged.
" Hydro is still facing some challenges when
it comes to financing. "
There are a couple of factors behind this,
he explained. One is the longer period for
FERC licensing for hydro generation, which
can take three to five years. However, changes
in the law in 2011 are intended to expedite
development at unpowered dams like Red
Rock. FERC has now been directed to consider
a shortened two-year licensing process
for such facilities.
The long licensing period stands in stark
contrast to how long it actually takes to
build small retrofits. In especially favorable
sites, the plant can be up and running
in less than a year. The 6-MW Mahoning
Creek Hydroelectric Project at Mahoning
Creek in Armstrong County, Pennsylvania,
began construction in March 2013 and was
online by December. The project, retrofitted
to a flood control dam built in 1941,
was developed by Enduring Hydro, an investment
and development firm that specializes
in small hydropower.
Another roadblock is the larger upfront
costs compared to equivalent natural gas
generation. " To develop hydro, you really
have to have more of a long-term outlook, "
Finis said, and focus on the lower levelized
cost of energy over the project lifetime.
" You'll have more cost on the O&M side,
replacement side, and fuel side with other
technologies that you don't necessarily have
with hydro. "
This is an important advantage when you
consider the much longer lifespan for a hydro
plant compared to a gas plant: Some hydro
projects in the U.S. have been reliably generating
electricity for more than 100 years.
The look of the hydro sector may be
evolving, but all signs are that its legacy will
continue. ■
-Thomas W. Overton, JD is a POWER
associate editor (@POWERmagazine,
@thomas_overton).
POWER | October 2014
http://www.powermag.com
POWER October 2014

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