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CHAPTER 5 Hydropower and Geothermal Services The hydropower and geothermal electricity sectors show substantial growth potential in many countries. As electric power capacity in these sectors is added, opportunities for service providers will also increase. Service sectors that will substantially benefit include engineering, construction, and operations and maintenance (O&M). New projects in emerging economies, in particular, often provide export opportunities for U.S. service providers. This chapter will discuss both sectors in detail. Hydropower Energy Hydropower, a renewable resource and one of the oldest forms of electrical power generation, accounts for the largest share of electricity generated from renewable resources. Due to the environmental impact of large dams on rivers and surrounding regions, however, many policies that aim to provide incentives for renewable energy target only small-scale hydropower projects. Smaller projects are generally viewed as less environmentally detrimental because they are thought to present fewer environmental and social concerns and to need much less in the way of financing and startup costs, although smaller projects do not always have a smaller environmental impact.1 This section presents information related to the entire hydropower industry and related services and, where available, specific information for small hydropower. Note that there is no globally accepted definition of “small” hydropower, and project capacities for hydropower may range from several watts for the smallest individual installations to tens of gigawatts (GW) for the largest. According to one estimate, hydropower projects rated at capacities lower than 10 megawatts (MW) represent about 10 percent of global hydropower capacity.2 In this chapter, discussion of small hydropower refers to projects of 50 MW capacities or less, unless otherwise noted.3 1 Deonta Smith, “Hydroelectric Power in the U.S.,” July 2012, 7–8; industry representatives, interviews with USITC staff, March 4, 12, and 14, 2013. The environmental and social impacts of a single large hydropower project are likely to be greater than those of individual smaller projects, but the cumulative impacts of many smaller hydroplants may equal or even exceed those of a single large plant generating the same output. In other instances, the overall environmental sustainability of a project involving a few large plants may actually receive more scrutiny and control than a larger number of separate, smaller projects. Consequently, the International Energy Agency (IEA) recommends assessing particular projects on their overall sustainability performance, rather than their size. IEA, 2012 Hydropower Technology Roadmap, 2012, 31. In another recent study, researchers concluded that the cumulative impact of small dams on China’s Nu River system has caused significant environmental damage to the local ecosystem. Oregon State University, “Dam Construction to Reduce Greenhouse Gases Causes Ecosystem Disruption,” June 18, 2013. 2 For example, small-scale hydro, as referenced in individual country laws, is defined as project generation capacity below 1.5 MW in Sweden, but below 50 MW in China. IEA, 2012 Hydropower Technology Roadmap, 2012, 15. 3 This cutoff follows the definition used by Bloomberg New Energy Finance (BNEF), the source of much of the renewable energy project data in this report. 5-1PDF Image | Renewable Energy and Related Services: Recent Developments
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