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DOE OSTI2021

Hydropower Value Study: Current Status and Future Opportunities

To reveal the current landscape and prospective role and influence of hydropower operations on the nation’s electric grid, the U.S. Department of Energy’s (DOE’s) Water Power Technologies Office (WPTO) commissioned the Hydropower Value Study (HVS): Current Status and Future Opportunities. HVS explores current hydropower operations and resulting value in examples across the country. HVS shows that hydropower operations are changing in some regions, but hydropower continues to be a strong contributor to grid reliability and resilience.

water, hydrowires, PSH↗
DOE OSTI2020

A Comparison of the Environmental Effects of Open-Loop and Closed-Loop Pumped Storage Hydropower

Pumped storage hydropower (PSH) is a type of energy storage that uses the pumping and release of water between two reservoirs at different elevations to store water and generate electricity (Figure ES-1). When demand for electricity is low, a PSH project can use low cost energy to pump water from the lower reservoir to the upper reservoir for storage. When demand for electricity is high, a PSH project can release water from the upper reservoir through a powerhouse to generate electricity. Traditionally, this meant that PSH plants generated power during the day and pumped at night, with modest diurnal or seasonal variation.

13 HYDRO ENERGY↗
DOE OSTI2020

Pumped Storage Hydropower FAST Commissioning Technical Analysis

This report was developed in tandem with the Furthering Advancements to Shorten Time (FAST) to Commissioning PSH Challenge and represents the underlying technical analysis that informed the competition. Lead by Oak Ridge National Laboratory, the report is designed to address barriers and solutions to PSH development by establishing baseline project development knowledge, defining key aspects of project development, and identifying opportunities to reduce project timelines, costs, and risks. The document’s scope includes post-licensing activities and excludes factors related to permitting or licensing.

13 HYDRO ENERGY↗
DOE OSTI2020

A Comparison of the Environmental Effects of Open-Loop and Closed-Loop Pumped Storage Hydropower

Pumped storage hydropower (PSH) capabilities are generally characterized as either open-loop or closed-loop. The U.S. Department of Energy (DOE) defines open-loop PSH as “continuously connected to a naturally flowing water feature,” and closed-loop PSH as “not continuously connected to a naturally flowing water feature.” All the PSH projects constructed in the United States to date are open-loop, so the potential environmental effects of closed-loop systems are not as well documented as the effects of open-loop systems. To address this knowledge gap, the DOE Water Power Technologies Office, under its HydroWIRES Initiative, has prepared this report to: (1) compare the potential environmental effects of open-loop PSH projects with those of closed-loop PSH projects; (2) describe how these effects are being avoided, minimized, or mitigated at existing projects in other countries and proposed projects in the United States; and (3) discuss the relative significance of the environmental issues. The report begins with a brief introduction on the current status of PSH development in the United States. Next, the report describes the current Federal Energy Regulatory Commission (FERC) hydropower licensing process, emphasizing some recent regulatory changes that affect closed-loop PSH development. The report then provides a summary comparison of the environmental effects of constructing and operating open-loop and closed-loop PSH systems and discusses the relative significance of those issues. This comparison and discussion are based on the results of a literature review and a review of FERC licensing records. The literature review includes journal articles, technical reports, and presentations on the environmental effects of PSH systems. It includes literature from the United States as well as countries where closed-loop PSH projects have been constructed. The FERC records review examines the FERC licensing record (e.g., National Environmental Policy Act documents and license orders) to identify the environmental effects anticipated and mitigation measures proposed for six of the closed-loop PSH projects currently licensed or permitted in the United States. For comparison, the FERC records review also discusses the environmental effects and mitigation measures for four open-loop PSH projects proposed or currently operating in the United States. The comparison of effects between open-loop and closed-loop projects is relative; that is, it characterizes the impacts of each project type as generally lower or higher than another project type. The comparison reflects general trends among project types because there are sometimes exceptions to the examples cited. The comparison is based on both spatial (location) and temporal (duration) factors and reflects both the severity and likelihood of effects. The report concludes that the environmental effects of closed-loop PSH projects are generally lower (i.e., more localized and of shorter duration) than those of open-loop PSH projects because they are located “off-stream,” minimizing aquatic and terrestrial impacts, and often have greater siting flexibility than open-loop PSH projects. For certain closed-loop project designs, however, impacts to groundwater may be higher relative to open-loop projects and should be considered in any environmental review.

13 HYDRO ENERGY↗
DOE OSTI2022

Price Formation in Zero-Carbon Electricity Markets: The Role of Hydropower

In April 2019, Water Power Technologies Office (WPTO) launched the HydroWIRES Initiative to understand, enable, and improve hydropower and pumped storage hydropower’s (PSH’s) contributions to reliability, resilience, and integration in the rapidly evolving U.S. electricity system. The unique characteristics of hydropower, including PSH, make it well suited to provide a range of storage, generation flexibility, and other grid services to support the cost-effective integration of variable renewable resources. The U.S. electricity system is rapidly evolving, bringing both opportunities and challenges for the hydropower sector. While increasing deployment of variable renewables such as wind and solar have enabled low-cost, clean energy in many U.S. regions, it has also created a need for resources that can store energy or quickly change their operations to ensure a reliable and resilient grid. Hydropower (including PSH) is not only a supplier of bulk, low-cost, renewable energy but also a source of large-scale flexibility and a force multiplier for other renewable power generation sources. Realizing this potential requires innovation in several areas: understanding value drivers for hydropower under evolving system conditions, describing flexible capabilities and associated tradeoffs associated with hydropower meeting system needs, optimizing hydropower operations and planning, and developing innovative technologies that enable hydropower to operate more flexibly.

13 HYDRO ENERGY↗
DOE OSTI2023

Representing the Future Role of Hydropower and Pumped Storage Hydropower (PSH) in Electricity Planning Tools

Existing tools for long-term electric sector planning struggle to represent hydropower's nuanced site-specific technical and operating characteristics, which depend on technical specifications as well as water management practices and regulations. As a result, long-term planning models and tools insufficiently characterize hydropower value and incentives, and they cannot fully represent the role hydropower can play in a future electricity system that could include a high penetration of variable wind and solar generation, battery storage, and other low-carbon technologies. This presentation demonstrates the culmination of a multi-year effort to enhance hydropower representations in electricity planning models at the National Renewable Energy Laboratory (NREL), as part of the U.S. Department of Energy (USDOE) HydroWIRES Initiative. New modeling techniques are demonstrated using the NREL Regional Energy Deployment System (ReEDS), an open-access electric sector capacity expansion model used extensively in a wide range of technology deployment and integration analysis, including the 2016 USDOE Hydropower Vision. ReEDS uses a least-cost optimization approach to understand investment and operation of electricity generation, storage, and transmission technologies under future scenarios of electricity technology innovation, demand, policy, and other sectoral drivers. ReEDS was modified to better represent value and opportunities for both pumped storage hydropower (PSH) and hydropower systems without pumping. We incorporated a new national closed-loop PSH resource and cost assessment to explore new PSH deployment opportunities and added plant-level data to better represent the existing PSH fleet. New upgrade pathways enable opportunities for enhanced hydropower flexibility by adding pumps, upgrading dispatchability, increasing capacity, or increasing energy availability. The model was also modified to better represent the value of long-duration energy storage beyond diurnal time scales, allowing both hydropower and PSH to better balance energy supply and demand variations in high-renewable systems. These new features are demonstrated under reference and high-renewable futures and a range of sensitivity scenarios to understand which hydropower and PSH deployment and upgrade opportunities are the most attractive. These scenarios indicate potential for new closed-loop PSH deployment and for hydropower flexibility improvements to have important impacts on long-term electricity system emissions and economic outcomes. Increasing flexibility of the existing hydropower fleet can reduce the need to invest in new flexible grid technologies and help achieve decarbonization goals. Systems with sufficient energy storage could also be valuable for balancing seasonal differences in renewable energy availability, particularly from solar energy. The methods developed for ReEDS and subsequent scenario results reveal important considerations for future hydropower and grid system planning, and all data and code is freely available in a public code repository for use throughout the hydropower industry.

capacity expansion↗
DOE OSTI2022

1.2.2.405 HydroWIRES Topic D1: Capacity Expansion Model (CEM) Enhancements

Long-term grid planning tools have difficulty representing detailed hydropower operating characteristics, which depend not only on technological specifications but also on water management practices and regulations. As a result, the value of hydropower is incompletely characterized, and the potential role of hydropower in the performance and resiliency of the future electric grid is not fully understood. This work will fill that gap by developing new ways to represent hydropower resource, technology, and operational characteristics in electric sector capacity expansion models and implementing them in the open-source version of the National Renewable Energy Laboratory's Regional Energy Deployment System (ReEDS) model. ReEDS is a well-established national scale grid planning tool used since 2003 by the U.S. Department of Energy and others to explore the evolution of the U.S. electric sector. Improvements will include a comprehensive national resource assessment for pumped storage hydropower and methods for modeling multiple hydropower technology categories characterized by technical, regulatory, and economic characteristics. The project will provide guiding principles and strategies for improving hydropower modeling in capacity expansion models and deliver a first-of-its kind versatile PSH dataset. All data, code, and methods will be publicly available, allowing the industry to better identify the value of hydropower in the future electricity system and make more informed planning decisions.

capacity expansion↗