| World news Global Investments in hydro set to increase in 2022 says new research
Hydropower capacity in 2022 is set to exceed 1200GW and investments will climb to $36.3 billion, new research from Rystad Energy has suggested, with hydro set to solidify its position as the most popular renewable energy source. The research says that Investments in the sector slowed somewhat
before 2020 as other renewable sources such as wind and solar PV gained momentum, a situation exacerbated by delays to several major hydropower projects and some regions’ lack of policy changes, which also stunted growth. The industry is, however, experiencing a renaissance as countries are increasingly motivated to find suitable renewable options to decarbonize their energy supply. “Hydropower is the backbone of low-carbon electricity generation and has been rising since the 1970s. Over the last two decades, the installed global capacity of hydropower has grown from 680GW in 2000 to nearly 1200GW in 2021, a surge of more than 75%,” says Rystad Energy analyst Karan Satwani. China remains the world leader in total installed hydropower capacity with over 340GW, with Brazil in second place with 112GW. The US (84GW), Canada (81GW) and Russia (50GW) round out the top-five list for hydropower generation globally, followed by India (47GW), Norway (33GW), Turkey (30GW) and Japan (23GW). In recent years, Asian and South American countries, led by China and Brazil, have driven global capacity additions while other continents have stayed relatively flat. Combined installed capacity in Asia has risen from 462GW in 2017 to an expected 514GW in 2022, whereas total capacity in South America has climbed from 175GW to an expected 192GW over the same period. Looking at 2022, China’s Baihetan hydropower project, which began operations from two of its 16 units in June 2021, will be able to produce up to 16GW of energy annually once fully operational later this year. This will make it the second biggest hydroelectric project globally, eclipsed only by another Chinese mega- development, the Three Gorges Dam project in Hubei province. The Wudongde hydropower plant, another ambitious Chinese development, began full operations in June last year with an
installed capacity of 10.2GW, making the project the seventh-largest hydropower project worldwide.
Most of the capacity additions until 2030 are expected to come
from large-scale projects in Asia and Africa. In Africa specifically, installed capacity is expected to grow at a combined annual growth rate of 2.5% from 2017 to 2023, driven by Ethiopia, Mozambique and Uganda. Most of the large-scale projects in Asia and Africa are managed by
state-owned companies. The research says a slowdown is expected in the pace of hydropower development in China over the coming years due to growing concerns over environmental impact and the shrinking availability of economically attractive sites for large projects. However, India’s new long-term targets and financial incentives are expected to unlock a large pipeline of previously stalled projects as the government aims to boost hydropower capacity by about 55% this decade and reach 73GW by 2030. No significant capacity additions are expected in North America and Europe for at least two years. Still, fleet modernization will be a priority in both continents during this decade. On a regional basis, Sub-Saharan Africa and Asia-Pacific are
expected to grow, as untapped potential is being developed to meet rising energy demand. These regions also need cost-effective power generation to expand electrification. This decade, a considerable portion of investments will be spent on modernizing aging plants in advanced economies. In addition, significant investments are required for existing infrastructure, including upgrades, replacements and the addition of turbines. Most of the spending on modernization will be in North America, Europe and Eurasia, where most of the world’s aging fleet is located. Investments will be required to restore performance and adapt plants to operating conditions that have changed since the plants were built. Overall, the proportion of investments spent on modernizing and maintaining existing hydropower facilities and infrastructure will be significantly higher than spending on the construction of new power plants in younger markets.
US Plans for San Vicente energy storage facility move forward The City of San Diego and the San Diego County Water Authority are to begin negotiations on a project development agreement with the BHE Kiewit Team to develop Phase 1 of the potential San Vicente Energy Storage Facility Project, which could generate enough energy for about 135,000 households. The proposed project is subject to a full environmental review and regulatory approvals. If the Water Authority and City of San Diego decide to proceed after completing environmental review, the San Vicente Energy Storage Facility would provide up to 500MW of long-duration stored energy upon completion to help meet peak electrical demands throughout Southern California and help meet California’s renewable energy goals. “On top of providing a reliable, clean source of energy and helping our City and the state of
California meet our climate goals, this project has the potential to create well-paying local jobs,” said San Diego Mayor Todd Gloria. “I’m proud of the City’s partnership on this project and look forward to it moving though the regulatory approval process to fruition.” The Water Authority’s Board of Directors has
approved entering into negotiations with BHE Kiewit, along with a $4.6 million contract with AECOM Technical Services, Inc. to perform environmental work for the project. The Board also approved a $1.6 million amendment to a professional services contract with Black & Veatch Corp. to support project development agreement negotiations, provide technical expertise for a California Independent System Operator interconnection application, perform preliminary design and engineering reviews, and assist with preparing a FERC license application.
Phase 1 work includes activities required
to complete site investigations, design, and engineering; support state and federal
environmental reviews; support the acquisition of a CAISO interconnection agreement; support the acquisition of a FERC license; and collaborate with project partners to achieve commercialization. Four proposals were received and evaluated for the project development contract. Teams submitted written proposals followed by interviews in December. Evaluators considered each team’s understanding of the scope of work, technical and specialized qualifications, strategies to commercialize the project, and financial capabilities. The panel unanimously recommended starting negotiations with the BHE Kiewit Team, which includes BHE Renewables, LLC, and Kiewit Development Company. BHE Renewables, LLC, is a wholly owned subsidiary of Berkshire Hathaway Energy Company. The Water Authority Board today also approved negotiating with Rye Development, LLC, if negotiations with the BHE Kiewit Team are not successful.
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