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RENEWABLE POWER GENERATION COSTS 2019 Hydropower is both mature and reliable and is also the most widely deployed renewable generation technology – even though its share of global renewable energy capacity has been slowly declining. Indeed, its share fell from 76% (925 GW) in 2010 to just under 47% in 2019. Global installed hydropower capacity (excluding pumped hydro) was 1 189 GW at the end of 2019. Hydropower provides a low-cost source of electricity and, if the plant includes reservoir storage, also provides a source of flexibility. This enables the plant to provide flexibility services, such as frequency response, black start capability and spinning reserves. This, in turn, increases plant viability by increasing asset owner revenue streams, while enabling better integration of VRE sources to meet decarbonisation targets. In addition to the grid flexibility services hydropower can provide, it can also store energy over weeks, months, seasons or even years, depending on the size of the reservoir. In addition, hydropower projects combine energy and water supply services. These can include irrigation schemes, municipal water supply, drought management, navigation and recreation, and flood control – all of which provide local socioeconomic benefits. Indeed, in some cases the hydropower capability is developed because of an existing need to manage the river flows and hydropower can be incorporated into the design. While these additional services increase the viability of hydropower projects, the LCOE analysis carried out in this report, however, does not calculate the value of any services, outside of electricity generation, which are not site and power market specific. TOTAL INSTALLED COSTS The construction of hydropower projects varies in size and properties, influenced by the location of the project. There are also key technical characteristics which determine the type and size of turbine used. These key parameters include, among other factors, the “head” (which is the water drop to the turbine determined by the location and design); the reservoir size; the minimum downstream flow rate; and seasonal inflows. Hydropower plants fall under three categories: •Reservoir, or storage hydropower, which provide a decoupling of hydro inflows from the turbines, with the water storage serving as a buffer that dams can use to store or regulate hydro inflows decoupling the time of generation form inflows. • Run-of-river hydropower, in which hydro inflows mainly determine generation output, because there is little or no storage to provide a buffer for the timing and size of inflows. • Pumped storage hydropower, in which there are upper and lower storage reservoirs and electricity is used to pump water from the lower to the upper reservoir in times of low demand (mostly during off-peak periods27) to be released in periods of high electricity demand. Pumped hydro is mostly used for peak generation, grid stability and ancillary services. It can also be used to integrate more variable renewables by storing abundant renewable generation that is not needed during periods of low electricity demand. 90 27 Periods of low electricity demand and consequently low electricity prices. 28 Large hydropower projects for this analysis are deemed to be projects greater than 10 MW in capacity.PDF Image | RENEWABLE POWER GENERATION COSTS IN 2019
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