Development of Micro-Hydro Projects Stacey Simms Associate Director, Programs CREA Energy Innovations Summit

Developing Micro-Hydro In Colorado Colorado’s Governor’s Energy Office (GEO) Small Hydro Potential in Colorado What’s the Problem FERC Streamlining Pilot Next Steps

The Governor’s Energy Office (GEO) Vision The Governor’s Energy Office promotes sustainable economic development in Colorado through advancing the state’s energy markets and industry to create jobs, increase energy security, lower long term consumer costs, and protect our environment.

Energy Markets Represent a Significant Opportunity for Colorado MISSION The Governor’s Energy Office promotes sustainable economic development in Colorado through advancing the state’s energy market and industry to create jobs, increase energy security, lower long term consumer costs, and protect our environment. Environment Cost Security Jobs Diversifying fuel types & geographic location & reducing demand through resource efficiency reduces volatility & increases reliability Increased efficiency and maturation of renewable energy and alternative fuels have resulted in new low cost sources of energy Tens of thousands of new jobs in the industry across fuel types (emerging & legacy) & supply chain (R&D, manufacturing, O&M) Fuel consumption represents a major source of emissions of local pollutants and greenhouse gases

Developing Micro-Hydro In Colorado Colorado’s Governor’s Energy Office (GEO) Small Hydro Potential in Colorado What’s the Problem FERC Streamlining Pilot Next Steps

Developing Micro-Hydro In Colorado Low impact projects satisfy the following:  No significant changes to current operation  Do not increase stream diversions  No adverse effects on water quality, fish passage, threatened species, and cultural or recreational resources.  Utilizes existing Infrastructure  Meet other requirements for a FERC exemption Low impact projects satisfy the following:  No significant changes to current operation  Do not increase stream diversions  No adverse effects on water quality, fish passage, threatened species, and cultural or recreational resources.  Utilizes existing Infrastructure  Meet other requirements for a FERC exemption

Converting Non-Powered Dams – Carter Lake Conduit/Irrigation

Conventional Hydropower- Hoover Dam Pumped Storage Hydropower Run of River Hydropower

Current Capacity 1 : 666 MW5.3% of State Total Generation ('08): 2,039,000 MWh3.8% of State Total Untapped potential 2 (projects 1,400 MW Jobs per MW 3 : 5.5 FTE Total Job Potential: >7,700 FTE 1 Energy Information Agency 2 Idaho National Laboratory (does not include pumped hydro) 3 Navigant Consulting/National Hydropower Association. Hydro in Colorado

Rancher is utilizing a small hydro system in Colorado Project Details Project Name: Meeker Wenschhof Site Location: Meeker, CO Project Capacity:23kW Annual Generation100,000 kWh Example of a Colorado Success: 23kw Small Hydro Meeker Wenschhof Project

Developing Micro-Hydro in Colorado Colorado’s Governor’s Energy Office (GEO) Small Hydro Potential in Co What’s the Problem FERC Streamlining Pilot Next Steps

Elements to Developing a Successful Micro Hydro Project in the US ResourceSite Control EPC/BOP Grid Connection Power Sales REC Sales Transmission Financing Permits and Siting Turbine Supply Overall Market Project Specific Revenue Drivers Cost Drivers

100 Years for 1% of sites GEO GOAL:50 sites permitted in 5 years FERC Average: 0.5 per state/year (avg) 5,061 sites Permits and Siting FERC permitting is a barrier to small hydro development

Developing Micro-Hydro In Colorado Colorado’s Governor’s Energy Office (GEO) Small Hydro Potential in Co What’s the Problem FERC Streamlining Pilot Next Steps

Federal Issues in FERC Process 1 st Phase of Consultation 2nd Phase of Consultation 3rd Phase of Consultation Multiple stakeholders (Historic Preservation staff) in CO working w DC (Regulators) Delays in feedback on missing data, information etc… Limited technical assistance No ability to share best practices & lessons learned for others

FERC-- Streamlined 3rd Phase of Consultation Application Detailed Information Agency Req ComplianceApp Completion and Submission

Outcomes Average period to receive an exemption Decreased Costs Developers Save $$ on Permits FERC & Partners Save $$ Increased Attention 11 national developers interested in CO Congressional Action Increased Collaboration State to State State to Federal Additional partnerships being explored

Developing Micro-Hydro In Colorado Colorado’s Governor’s Energy Office (GEO) Small Hydro Potential in CO What’s the Problem FERC Streamlining Pilot Next Steps FOR GEO

The Governor’s Energy Office (GEO) The Governor’s Energy Office promotes sustainable economic development in Colorado through advancing the state’s energy markets and industry to create jobs, increase energy security, lower long term consumer costs, and protect our environment. 1.Develop a “Balanced Energy Portfolio” (BEP) for the electric power sector through stakeholder guided analysis. 2.Unlock the potential from residential and small commercial energy efficiency through valuation and financing. 3.Promote the use of compressed natural gas as the leading element of a BEP for transportation fuels. 4.Support the innovation ecosystem in energy markets. 5.Increase the energy literacy in Colorado Vision: FY’12 Goals:

Thank You! Stacey Simms, Associate Director of Program (303) Francisco Flores, Renewable Energy Program Manager (303) Logan Street, Suite OL1 Denver, Colorado