| Spotlight
crucial connection to federal policy and actions. At FirstLight, much of our focus is on regional considerations – examining the impact of state and local policies on our facilities and actively participating in outreach efforts. Our association with the NHA has been
tremendously valuable in its ability to complement our regional efforts by providing insights into the broader federal landscape. This allows us to contribute our perspective and support to initiatives such as the infrastructure bill (IRA), where we were strong advocates.
Recently the company announced the integration of H2O Power and acquisition of Hydromega. Can you share more about how these integrations will unfold? I’ve emphasized that our primary focus for 2024 is implementation, and a significant aspect of this is the seamless integration of the H2O and Hydromega teams.
With H2O, we have successfully integrated the administrative aspects over the past seven months, fostering mutual support and collaboration on operational fronts, which has been incredibly gratifying to watch and enriching for the entire team. As a team, we are engaged in recontracting efforts in Canada, specifically in Ontario, for both small and large hydro projects. While we have a robust track record in managing our contracts in the US, our combined expertise now allows us to bring additional strength to these discussions, enhancing our capabilities. With Hydromega, a key point of excitement lies in its development pipeline, which adds another 2GW to our existing portfolio, encompassing offshore wind, solar, and storage projects. This includes land-based wind projects in Quebec, storage initiatives in Ontario, and new hydro builds. This expansion presents an exciting opportunity for us to delve into these projects and bring them to market and adds a team of seasoned developers to our already stellar development team. Currently, we are actively involved in solicitations in Quebec and Ontario, collaborating closely with the Hydromega team on these initiatives.
Do you see small hydro as a growing sector, or do you believe pumped storage is the direction in which the industry is heading? Small hydro and pumped storage represent two intriguing facets of the industry. While I personally have a strong affinity for pumped storage, the reality is that the US has not constructed a new pumped storage facility in over 25 years. It’s an area where we lag behind compared to Europe and China, where new plants are predominantly pumped storage. Long-term planning by regional groups and utilities uniformly underscores the importance of pumped storage in our future energy landscape. However, challenges arise in the utilization of existing pumped storage assets, which currently operate at around 8% to 9% capacity. With full utilization, we could potentially reach capacity factors of 35% to 40%.
Simultaneously, there are federal licenses
already issued for new pumped storage projects, but the critical question is the offtake mechanism in the US –how to secure contracts for financing and construction, where batteries often have the upper hand due to smaller scale and easier siting. Batteries benefit from supportive federal and
state policies, a trend reminiscent of the early 2000s when wind energy received a significant push through incentives. On the other hand, small hydro faces distinct challenges. The civil infrastructure demands of hydro plants, combined with lower output in small hydro projects, make them comparatively challenging. While our portfolio spans kilowatt-sized plants to the substantial 1168MW pumped storage project, the current economic environment, marked by higher interest rates and inflation, poses challenges for small hydro. Many in the industry are grappling with these dynamics.
What measures do you think could be implemented to promote increased pumped storage development in North America? Over the past several years, significant strides have been made in overcoming obstacles to pumped storage development. We’ve focused on streamlining the licensing process, removing many hurdles in the regulatory landscape, especially for closed loop pumped storage projects. The primary challenge now lies in the offtake and contracting aspects, impeding broader adoption in the US. To encourage more pumped storage development, a crucial step would be to align storage procurements with technology neutrality. Currently, there is a notable bias towards chemical storage despite the fact that, in terms of price per megawatt, pumped storage often competes favorably or even outperforms batteries. However, siting constraints pose challenges, limiting opportunities for pumped storage projects. The key impediment is the offtake issue.
Addressing this requires exploring various contracting opportunities, whether through capacity-only contracts or comprehensive agreements that encompass capacity, energy, ancillary services, and renewable credits. Wider adoption hinges on fostering a market environment that encourages such contracting flexibility.
Why is FirstLight focusing on co-locating solar and batteries, and what is the vision behind offering a bundled, true 24-7 clean energy product?” Our approach to co-locating solar and batteries is rooted in our commitment to delivering a comprehensive clean energy solution. While we’ve achieved success in contracting our existing hydro assets with municipal utilities in Massachusetts and Connecticut, our vision is to advance towards providing a bundled, true 24-7 clean product.
In the evolution of solving the challenge of clean energy, we’ve transitioned from corporate offtakers buying wind RECs in Iowa to co-located renewable energy credits in the same geographic
area. The next frontier involves offering a bundled product sourced from multiple clean energy sources that align with the load profile of the buyer. This means delivering a product where every hour can be accounted for with clean energy from our diverse portfolio. The combination of run-of-river hydro as a baseline, peaking hydro, and the addition of solar and storage brings us closer to realizing this goal. Co-locating solar allows us to leverage our existing skilled workforce, maintaining the efficiency of our hydro facilities while extending their expertise to solar farms and battery storage. The synergy between these technologies also
provides an opportunity for our team to explore new technologies and expand their skill set. Our ultimate goal is to offer a 24-7 clean product, which, to the best of our knowledge, is not widely implemented at the moment. Some pilot programs exist, and companies like TC Energy have made announcements in Canada, but we believe our approach, especially as we expand into offshore and onshore wind projects, will set us apart in the pursuit of a cleaner and more sustainable energy future.
Can you share your vision for workforce development?
When discussing workforce development, it’s crucial to highlight the added benefits of initiatives such as prevailing wage and apprenticeship programs, especially in new builds. Staying committed to training the next generation is not only aligned with incentives but is also instrumental in shaping the future workforce. As a company, we aim to pair such programs with our new builds, maximizing benefits for both our organization and the industry as a whole. This commitment helps us make a meaningful impact on fostering the next generation of skilled workers. In the hydropower industry, where there has been concern about an aging workforce, we’ve been able to manage the turnover effectively. Although there is a noticeable transition of institutional knowledge, initiatives like apprenticeship programs and the emphasis on strengthening trades have mitigated the impact. We’ve seen turnover but have maintained asset availability at historic levels. Regarding our workforce breakdown, we’re
experiencing the first wave of retirements – approximately 10 to 15% of our workforce is nearing retirement age. Surprisingly, attracting new employees has not been a significant challenge, particularly since a substantial portion of our field workforce are members of the IBEW. This affiliation not only draws individuals to our workforce but also widens our pool of potential hires through local union halls. Another noteworthy practice that we’ve
adopted involves engaging retirees to support major projects on our legacy assets. This collaboration allows a transfer of critical knowledge from seasoned workers to the next generation, contributing to the continuity and success of our clean energy workforce.
www.waterpowermagazine.com | January 2024 | 9
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37
