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2 June 2009 Hydropower Analysis Center 1 BUILDING STRONG ® Hydropower Impact Analyses for Water Supply Reallocation Studies Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE

Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Page 1: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

2 June 2009 Hydropower Analysis Center 1

BUILDING STRONG®

Hydropower Impact Analyses for Water Supply Reallocation Studies

Water Supply Workshop2 June 2009Tulsa, OK

Russell L. Davidson, MSCE, PE

Page 2: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Electrical Power USACE CapacityHydro

13%

Nuclear 14%

Gas Turbine 5%

Fossil Steam 62%

Other6%

USACE 24% (21,000 MW)

Bureau of Reclamation 16%

Tennessee Valley Authority 6%

Commercial 3%

Others 51%

The USACE has an $18 billion investment in

hydropower facilities. Approaching $1 billion

in annual revenue. Big Business!!

Page 3: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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• 75 major hydropower plants in 16 Districts• 376 generating units• Generators ranging from <1 MW to 220 MW• Total generating capacity of 21,060 MW

USACE Hydropower Capability

Page 4: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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NWDNWD--NPNP (62.5%)(62.5%)

NWDNWD--MRMR (12.6%)(12.6%)

SWDSWD (8.3%)(8.3%)

MVDMVD (1.2%)(1.2%)SADSAD

(10.9%)(10.9%)LRDLRD

(4.5%)(4.5%)

Hydropower Capacity Distribution by MSC

Page 5: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Power Marketing Administrations (PMA’s)

Page 6: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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HYDROPOWER ANALYSISCENTER

HDC Support

-Major Rehab-Rewind

Work for Others-Power Values-Cost Allocation/ Reallocation

-River System Studies-Miscellaneous Studies

CENTER OF EXPERTISE (MCX)Hydropower System Analysis

ER 1110-1-8158

Special Activities-Procedures for

Evaluating HydroPower Benefits

-Hydro Power Manual

Page 7: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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H-AC/DC

Page 8: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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• Hydropower Planning• Energy Studies• Capacity Studies• Economic Analysis• Special Studies• Turbine Performance Selection• Pacific Northwest Issues

– Regional Planning Activities– ESA Studies

Areas of Expertise

Page 9: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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CENTER OF EXPERTISE (MCX)Hydropower System Analysis

ER 1110-1-8158

HYDROPOWER ANALYSIS CENTER

• MCX is responsible for USACE hydropower analyses

• ER 1110-1-8158 mandates use of MCX services• MSCs monitor and certify use of MCX• MCX maintains expertise

Page 10: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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• ER 1105-2-100– Economic & Environmental Principles and Guidelines for Water and

Related Land Resources Implementation Studies (P&G)

• EM 1110-2-1701– Hydropower Manual

• FERC’s Hydroelectric Power Evaluation

• Evaluating Hydropower Benefits – US Water Resources Council Water and Energy Task Force

Hydropower Planning Policy and Guidance

Page 11: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Marketing of Federal Hydropower

• Federal Power Customers– “Preference Customers” through Federal Power Marketing Administrations– Preference Customers can include Municipalities, Cooperatives, Public Utility

Districts, Federal agencies, Irrigation Districts, Native American Tribes– In addition, some power is marketed to Investor Owned Utilities and Direct

Service Industries

• Cost of Federal Hydropower – Sale to Power Customers generally “At Cost” Sale to Power Customers

generally “At Cost”– Cost includes repayment of power related capital costs (generation and

transmission) including interest, annual O&M Costs, purchase power and wheeling costs

Page 12: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Evaluation of NED Hydropower Benefits

“Contributions to NED are increases in the net value of the national output of goods and services, expressed in monetary units.”

P&G, p. 1, 1 March 1983

Page 13: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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The Role of HAC: Benefits and Economics

•• HAC RoleHAC Role::–– Analysis of hydrologic, hydraulic, and outage dataAnalysis of hydrologic, hydraulic, and outage data–– Determination of hydropower energy and capacityDetermination of hydropower energy and capacity–– Development of hydropower benefitsDevelopment of hydropower benefits

•• BenefitsBenefits: : –– Hydropower benefits produced by HAC represent maximum Hydropower benefits produced by HAC represent maximum

potential benefits assuming no outages, and are used as input potential benefits assuming no outages, and are used as input into risk analysis modelsinto risk analysis models

•• EconomicsEconomics: : –– Economics are based on benefits, costs, and probability of Economics are based on benefits, costs, and probability of

outage, and are determined with risk analysis modelsoutage, and are determined with risk analysis models

Page 14: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Power Value Determination• Energy Value

– System Production Cost model• AURORAXMP

• Contract with platts’ M2M Power– SPECIAL STUDIES

• Capacity Value – FERC Spreadsheet Model

• HAC maintains price indexes• Indexes maintained

– Handy/Whitman’s electric utilities cost indexes– ENR skilled labor– EIA fuel costs– GDP deflator

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In Some ways the Value of Power is like Real Estate –

Location –Location –

Location !

Page 16: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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North American Reliability Council

Page 17: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Power Value: Energy • Energy value represents cost of fuel and variable O&M for the

displaced mix of thermal plants’ generation.• Energy value is developed by HAC using proprietary electric power

price forecasts developed by a third party vendor – platts– Platts develops monthly 20-year forecasts for both Peak and

Off-Peak energy, as well as capacity values for all NERC Regions

– platts uses a system production cost (SPC) model called AURORA

• simulates power system operation, dispatching generation projects into the regional load

• meets the load in the most efficient and economic manner possible within constraints

• Energy value, in economical terms, is the marginal value

Page 18: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Power Value: Capacity • Capacity value is developed by HAC using procedures developed

by the Federal Energy Regulatory Commission (FERC)– Capital, fixed O&M, and fuel inventory are determined for

alternative thermal plant types– Typical generation-duration curve is developed to determine the

hydropower plant’s role in the power system– A least costly, most likely combination of thermal plant types is

determined• Capacity value represents the least costly, most likely combination

of thermal plant types displaced by the hydropower plant • Energy value, in economical terms, is the marginal value

Page 19: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Determining Hydropower Production• Energy and capacity data usually developed from sequential

streamflow routing (SSR) models such as ResSim(HEC-5), SUPER, and HYSSR

• PowerkW = Q*h*e/11.81– Q =>flow– H =>head – e =>efficiency

• Availability is the amount of time the generating units are available to produce power

• Power demand determines when and for how long the generating units are operated

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Determining Hydropower Production• Dependable capacity measures the amount of capacity a

hydropower plant can carry with some degree of reliability

• Average Availability Method defines the average capacity that can be supported in the power system load during the peak demand period of the year

• This dependable capacity represents the amount of thermal capacity that would be equivalent to the hydropower plant, given the limitations imposed on the hydropower plant by streamflow and reservoir elevation that varies both on a daily, seasonal, and year-to-year basis

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Other Possible Power System Benefits Ancillary Services

• Reactive Supply from Generators• Regulation and Frequency Response• Operating Reserves Spinning• Operating Reserves, Supplemental Reserves• Black Start Capability

Page 22: Hydropower Impact Analyses - United States Army...Water Supply Workshop 2 June 2009 Tulsa, OK Russell L. Davidson, MSCE, PE 2 June 2009 Hydropower Analysis Center 2 BUILDING STRONG

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Power Benefits SUMMARY

• Replacement cost of alternative power• Energy benefits = energy value x gain in annual energy• Capacity benefits = capacity value x gain in equivalent

capacity• Potential power benefits = energy benefits + capacity

benefits• Project life-cycle economics are determined in a risk

analysis model – based on power benefits, cost, and probability of outages

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Russell L. Davidson, P.E.Civil Engineer

CENWP-HDC-H 333 SW First Avenue Phone: 503-808-4222Portland, OR 97204-3495 Fax: 503-808-4202e-mail: [email protected]

Russell L. Davidson, P.E.Civil Engineer

CENWP-HDC-H 333 SW First Avenue Phone: 503-808-4222Portland, OR 97204-3495 Fax: 503-808-4202e-mail: [email protected]