| World news US DOE report identifies five major gaps in US hydropower supply chain
The US Department of Energy (DOE) has released a new report highlighting five significant gaps in the domestic hydropower supply chain and recommending actionable solutions. The report, titled “Hydropower Supply Chain Gap Analysis,” examines various sectors of the hydropower supply chain, from mining and extraction to installation and construction. Hydropower accounts for about 27% of renewable electricity generation in the US and is crucial for achieving a 100% clean electricity sector by 2035. Ensuring a robust domestic supply chain is essential for supporting new construction, upgrades, refurbishments, and relicensing of existing facilities. Jeff Marootian, Principal Deputy Assistant Secretary for Energy Efficiency and Renewable Energy, emphasized the importance of hydropower in the energy mix. “As more variable renewable energy sources like solar and wind are incorporated into the US electricity grid, hydropower will play a key role in keeping it reliable and stable,” Marootian said. “These new recommendations will strengthen the domestic supply chain needed to enhance our nation’s hydropower capabilities.” Drawing on feedback from hydropower industry stakeholders
gathered by DOE’s Water Power Technologies Office (WPTO), the report identifies the following five major gaps: Unpredictable and variable demand signals for materials and components: Hydropower systems have long lifespans, leading to replacement and refurbishment cycles spanning years or decades. Limited or nonexistent domestic suppliers for materials and components: Some materials and components have few or no domestic suppliers. Federal contracting procedures and domestic content laws: Procurement regulations and practices hinder the development
of the domestic hydropower supply chain. Foreign competition and ineffective trade policies: Inequitable competition from foreign companies and ineffective trade policies pose challenges. Shortage of skilled workers: The industry lacks skilled workers due to offshoring over the past 40 years, with many experienced workers retiring or moving to other industries.
To address these gaps, the report recommends: Federal leadership to create a consistent demand signal: Leveraging the significant demand from federal hydropower facilities to drive the development of a stable supply chain. Increasing awareness through databases: Developing tools to predict demand and creating databases of domestic suppliers. Collaborating with other industries: Working with other low- carbon technology industries to generate a steady demand for common materials. Continuing workforce development efforts: Expanding educational programs and experiential opportunities to raise awareness and build expertise in
hydropower.These recommendations aim to guide DOE’s strategies in strengthening the domestic hydropower supply chain. They will help inform policies, incentives, loan programs, and technology investments to encourage domestic content and support workforce development. A webinar on September 5, 2024, will feature US Secretary of Energy Jennifer M. Granholm, WPTO experts, and industry stakeholders discussing the report’s findings and recommendations. The “Hydropower Supply Chain Gap Analysis” builds on previous assessments and responds to Executive Order 14017, which directs the Secretary of Energy to report on supply chains for the energy sector industrial base and aims to secure and diversify U.S. supply chains, including those for energy.
Kyrgyz Republic World Bank boosts support for Kambarata-1 hydropower project The World Bank’s Board of Executive Directors has approved an additional $13.6 million in financing for the Kambarata-1 hydropower project in the Kyrgyz Republic. This funding supplements the existing $5 million Technical Assistance for the project, aimed at ensuring its environmental, technical, financial, and commercial sustainability. The Kambarata-1 hydropower project aligns with the Kyrgyz Republic’s goals of transitioning to cleaner energy sources. The project is expected to significantly boost the country’s energy supply, generating 5600GWh per year, nearly half of the nation’s current output, and reducing annual carbon emissions by 5 million tons. It also aims to enhance energy and water management in Central Asia, expand electricity trade, decarbonize energy grids, and integrate solar and wind power. Additionally, the project will address water needs in Kazakhstan and Uzbekistan. “The World Bank is assisting the Kyrgyz Republic in developing its vast clean energy potential, which would be key to realizing
the country’s and region’s bold initiatives on clean energy transition and enhanced regional cooperation on energy and water. World Bank support will help the Government of the Kyrgyz Republic to comprehensively prepare the Kambarata-1 hydropower project in a sustainable and bankable way,” said Hugh Riddell, World Bank’s Country Manager for the Kyrgyz Republic. Since its approval in late 2023, the ongoing
technical assistance project has made notable progress. This includes updating the project feasibility, preparing environmental and social documentation, and forming a Donor Coordination Committee at the International Energy Investment Forum in Vienna in June 2024. The additional financing will support critical activities such as dam safety, environmental and social panels of experts, benefit-sharing plans, project financing and commercial structuring, and establishing a project company. The new funding is provided on highly concessional terms through the International Development Association (IDA), including an $11 million zero-interest credit with a 50-year repayment period and a 10-year grace period, and a $2.6 million grant from the Central Asia
Water and Energy Program (CAWEP). CAWEP, a partnership between the World Bank, European Union, Switzerland, and the United Kingdom, focuses on regional cooperation on water and energy security in Central Asia.
Australia
Enabling works begin for Somerset Dam upgrade Early enabling works for a major upgrade to Somerset Dam are set to commence, Minister for Regional Development and Manufacturing and Minister for Water, Glenn Butcher, has announced. These works will include the replacement of eight sluice gates, civil works, and geotechnical investigations. The project, funded by a $13 million allocation in Premier Steven Miles’ 2024-25 Queensland Budget, aims to bring Somerset Dam up to modern engineering and design standards to ensure long-term safety and water security. Water Minister Glenn Butcher visited Somerset Dam to inspect the site where these initial works will begin. “This is an important and complex project to make sure Somerset Dam continues to withstand extreme flood
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