Ken Silverstein EnergyBiz Insider Editor-in-Chief

Most regions of the world with hydro resources recognize the delicate balance between the environment and the need to generate fewer emissions from power plants. But the review processes in this country have become more inclusive, although they are about to be streamlined. Promising models such as the one developed along the Mamquam River in combination with clean air standards and global warming treaties are expected to spawn new hydro projects while existing facilities will likely get re-licensed.

"This new power plant is a perfect example of balancing the needs of the environment with responsible economic development," says Canadian Hydro Developers CEO John Keating, whose company developed the Upper Mamquam Hydroelectric Plant. "We know green electricity builds sustainable communities. Environmentally, the (plant) generates virtually zero emissions." Such "run-of-the-river" sites are dependent on stream flow, access to power lines and proximity to markets.

In the United States, hydropower has grown from 56,000 MW in 1970 to more than 90,000 MW today, according to the U.S. Department of Energy. Scientists at the Idaho National Engineering and Environmental Laboratory, meantime, say that the United States could more than double its supply of hydropower by accessing smaller streams in addition to dams that are traditionally used for such purposes. The next phase of hydropower, however, will focus on smaller hydro units that are less disruptive environmentally but still useful in supplying electricity to remote areas.

The Idaho Falls-based research lab says that about 170,000 megawatts of the clean and sustainable energy form remain untapped and are not restricted from development by the federal government. Meanwhile, at least 100 countries are developing small hydro plants, with the most potential in the former Soviet Union, South Asia and South America.

The conventional way to produce hydroelectricity is through dams. But the amount of power is contingent upon the speed of the water that turns the turbines. Dams can increase the velocity by raising the water level. But they leave big footprints and can cause local populations to disperse.

The 2005 Energy Law gives the Federal Energy Regulatory Commission (FERC) new authority when it comes to re-licensing hydroelectric dams. Under new rules expected out, utilities will be able to challenge requirements meant to safeguard the environment and fisheries that they say add a decade to the licensing process and cost hundreds of millions. Critics say such moves give utilities more rights than environmentalists and Native American tribes. More than 200 dams in 36 states are set to apply for new permits by 2020.

"We want to make changes to meet the needs of these rivers," says Dave Kvamme, spokesman for Portland, Ore.-based PacifiCorp, in an interview with the Associated Press. "But we don't want to do it at any cost." PacifiCorp wants to build five dams on Oregon's Klamath River.

Streamlined Rules

While dams are used to irrigate farms and supply water to cities, they are also responsible for displacing people and costing livelihoods as reservoirs occupy once-useful land. Spokane-based Avista Corp. is at odds with interest groups over the operation of five hydroelectric dams along the Spokane River in Washington State. The three-year battle is now in the hands of FERC, which will have until 2007 to hold additional hearings and review the applications before it would re-license the project for 30-50 years.

Interestingly, a feature story in the New Scientist says that contrary to popular belief, hydropower can cause serious damage to the environment. It says that hydroelectric dams produce significant levels of carbon dioxide and methane because up to 28 percent of all artificial greenhouse gas emissions could be from rotting vegetation in dams. The story cites Philip Fearnside of Brazil's National Institute for Research in the Amazon, who estimates that the greenhouse effect from one Brazilian dam was 3.5 times what would have been produced if oil had been burned.

"Everyone thinks hydro is very clean but this is not the case," says Eric Duchemin, a consultant for the Intergovernmental Panel on Climate Change, in the New Scientist story.

While regulators in this country are expected to streamline licensing rules, they do say that all voices will be heard. It used to be that FERC allowed dam operators to apply for licensing before public comment was taken. But stakeholders who took issue with those requests insisted that their views be known from the start. Now, dam operators must meet with all lobbies before they seek formal approval.

It's the tack that the Snohomish County Public Utility District in Washington State is using to re-license its Henry M. Jackson Hydroelectric project, which provides 75 percent of the county's drinking water and 5 percent of its electricity. The current permit, which expires in 2011, would be extended another 50 years.

"All of our processes provide an opportunity for the public to get involved early on," says David Turner, coordinator of the integrated licensing process for FERC. "The advantages of this are making sure that we know not just what the concerns are but that we have the information needed to consider and address those issues."

Clean air standards along with global warming fears are giving alternative energy sources new appeal, including hydropower. But any future development must also take into account the concerns of environmental and business organizations. An inclusive permitting process in combination with innovative ways to harness hydroelectricity is working to ensure that.

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