A Flexible Framework for Valuing Hydropower
Economics is a key driver behind the mix of energy sources contributing to the U.S. electric grid. The market value of different energy sources—such as hydropower, solar, wind, or fossil fuels—can determine how competitive they are on the power market. But it is a challenge to accurately estimate the value of hydropower grid services because some of hydro’s key attributes—flexibility and reliability—aren’t included in traditional valuations. To better reflect hydropower’s value, researchers from the Electric Power Research Institute simulated different energy and operating scenarios in the Western Electric Coordinating Council (WECC) region, which encompasses the western United States and parts of Canada and Mexico. With funding from the U.S. Department of Energy to quantify the value of hydropower in the electric grid, this research established the many value streams available to hydropower and identified opportunities to better assess the value of the full range of services that hydropower provides.
To learn more, read the report and check out a summary from Hydro Review.