Small Scale Hydro
What is small hydro?
Small hydroelectric generation is a renewable and decentralized source of electricity which is typically employed with very minimal environmental impact. Unlike large hydroelectric projects requiring the damming of rivers, small hydro (aka micro-hydro) projects simply divert a portion of a river or creek’s flow or are constructed on pre-existing diversions, such as raw water distribution systems. Such systems have been in use for over a century and in many places (including parts of Colorado) were the original source of electricity. Small hydroelectric generation has several significant advantages. Reliability is often cited as the number one advantage of small scale hydropower. Turbine equipment requires relatively little maintenance, has very high efficiency factors and long life spans. It produces high quality electricity and generation is as consistent as its water source, allowing for very predictable performance. An additional advantage is the low environmental impact or small scale hydroelectric projects, since they do not impede flows; some projects even result in greater overall in-stream flows. Yet another advantage is the ability for entities to incorporate small hydroelectric generation into existing hydraulic systems (for example, a raw water supply system), allowing for a better utilization of infrastructure.
The downside to small hydroelectric projects is the highly variable capital costs and site-specific conditions. There are several factors that contribute to the feasibility of the project, and like a fingerprint, no two are identical. Power production is contingent upon head and flow which is obviously unique in every case. Revenue is contingent upon access to the grid and utility-specific policy on decentralized generation such as net-metering and power purchase agreements. Capital costs vary considerably based on infrastructure requirements, permitting requirements (local and federal), as well as fluctuations in labor and materials inherent in any construction project. All of these aspects result in a wide range of cost in terms of dollars per kWh, making analysis all the more complicated.
Given all of the various factors impacting the viability of small hydroelectric generation, the mountain regions of Colorado are very well suited for development of such projects. Many municipalities and special districts in particular have opportunities to capitalize on raw water distribution systems, irrigation systems and even wastewater effluent. The challenge is identifying viable projects. The reward is decades of renewable and home-grown power.
How can the GEO help?
The Governor's Energy Office (GEO) works with rural electric cooperatives, municipalities, special districts, and other organizations through its Small Hydro Program. The program works to identify a streamlined process for developing sites for small hydroelectric generation systems. The program is in its pilot phase and will address issues such as education, Federal Energy Regulatory Commission (FERC) requirements, capital investment financing and pricing and standardization of Power Purchase Agreements.
Visit the Project Development page in this section for information about how to work with the GEO on your small hydro project. Also, be sure to review Colorado’s Small Hydro Action Plan, which can be accessed by clicking on the link in the menu above.
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