Small Hydro – August 2013

Investment Opportunity for Small Hydro??

Of course, the IEAs definition of renewables includes hydro, which accounts for about 80% of the 2018 forecast.  This is all the more impressive given hydropower’s stall in developed markets, largely due to environmental pressures.  However, a recent proposal by the Obama administration may bring new projects to the US market.  Last month, the President signed a bipartisan bill to modify standards and permitting timeframe for ‘small hydro,’ in existing dammed locations (http://cleantechnica.com/2013/08/16/new-hydropower-laws-could-add-60-gw-of-new-renewables-to-us-grid/)

 

While small at under 2% of potential US generating capacity, small hydro generation can provide low cost power ‘when you need it,’ i.e. at peak or other necessary demand periods.  Pumped hydro, while small in the US (and more significant in Europe) is also the easiest and cheapest way to store solar, wind, or other mismatched generation.

Importantly, when combined with local ‘storage’ subsidies (California, for instance), the economic use of this excess/mismatched power can reduce ‘grid-lock’ from an antiquated power grid.

…and I’ve been pitched an investment proposal for just this sort of idea….maybe that means we’re too late???

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