Economic Perspectives of Renewable Energy Systems

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(B) 6. 7. (C) 8. 9. Market situation and potential The technical challenges associated with large hydropower are mostly covered by the few manufacturers of major equipment and the numerous suppliers of auxiliary components and technology. While no major breakthroughs have occurred in machinery, the advent of computers has led to vast improvements in monitoring, diagnostics, protection and control technologies, as well as many other areas. The technical challenges for small hydropower are both a by-product of the large hydropower industry and the application of appropriate technology by small manufacturers, organisations and agencies. Perhaps the greatest difference between the technology status of large and small hydropower is the huge variability of designs, layouts, equipment types and material types used in small hydropower. It can be said that there is no “state of the art” in small hydropower, but rather a huge body of knowledge and experience in designing and building projects to fit the site and the resources of the developer. Attractiveness of hydropower technologies Hydropower is one of the most cost effective sources of renewable energy. Hydropower presently provides over 80% of renewable energy, and is not only considered the most cost effective renewable energy source but also offers other significant benefits such as flood control, irrigation, potable water etc. There is significant opportunity to increase development of hydropower on a cost competitive basis as a foundation to meeting the vision of 50% renewable energy by 2050. One of the greatest opportunities for quick gains to the renewable energy portfolio is to maximize the energy produced from existing projects through modernization. Gains of 5 to 10% are not an excessive target for most hydropower owners and where there are significant numbers of dams without generation, the numbers could be much higher. 10.The potential for new and improved projects in EU Member States as well as in developing countries is huge, with barriers both in the financial and institutional/political areas. Development mechanisms, green credits, feed-in tariffs etc, for sustainable generation, present a significant opportunity. Where not already impleme nted, technology and performance improvements at existing projects have benefits that exceed costs by a margin of 2 to 5 times. (D) Priorities for augmented R&D 11.While acknowledging that hydropower is well established, and considered a mature technology, there are some remaining opportunities for R&D to enhance its development globally. 12.To achieve further technology developments it is not necessary for technological breakthroughs, huge expenditures on governmental R&D or radical changes to development of the hydropower resource. What are required though, are continuous improvements in technology, public acceptance and approvals supported by government policy and implementation and development financed and supported by the public and private sector. 75

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