Hydropower

hgydropo er

Careful exploitation of an abundant resource

Hydropower will play a pivotal role in Norway’s energy supply in the forseeable future. By many, it is regarded as a mature technology that is an accepted sustainable alternative to fossil fuels. However, technological, societal and environmental developments require new research trajectories focused on the construction and optimal operation of hydropower systems.

Norway has during more than 100 years gained considerable expertise in hydropower in all areas, such as hydrology, environmental impact, construction, and production as well as maintenance of mechanical and electrical components and ways of operating. These competences apply to both large and small hydropower plants. Especially, Norway has been a pioneer in the construction of underground hydroelectric plants. Approximately 60% percent of the energy consumed in Norway has been generated with hydropower. Although about 40% of the consumption is still generated by fossil fuels, the utilization of hydropower remains a significant part of the national energy market. By 2020, renewable energy share will increase to 67.5%, reducing fossil fuels share to 32.5%. It is assumed that Hydropower will constitute a large part of this increase, together with wind power.

Technology status

The electricity power system in Norway in 2012 had a total capacity of 30.170 MW and an average annual generation of approximately 130 TWh, accounting for about 99 percent of total renewable electricity production. Since then, 600 MW (0.9 TWh) new capacity has been put in operation, and additional 750 MW (1.7 TWh) is under construction.

Seen from an international perspective, Norway is a major hydropower producer, and occupies the sixth position in the world, behind China, Brazil, Canada, the USA and Russia. Developments in recent years have been mainly focused on small-scale hydropower plants in Norway (here defined as power plants below 10 MW). The development of more small hydropower plants is expected to continue towards 2020, as there are currently hundreds of applications processed by NVE. In addition to this expectation, there is a growing effort in upgrading and refurbishment of older power plants, a need that will increase sharply in the coming years, with a rapidly ageing fleet of power plants.

Of the 1393 hydropower plants in operation 1/1-2012 (30.008 MW), 540 plants have a capacity of less than 1 MW, 520 plants have a capacity that varies between 1 and 10 MW and 333 plants have a capacity that exceeds 10 MW. The total generation capacity for all 1060 plants below 10 MW is about 8 TWh/year, while the 333 power plants with a capacity above 10 MW possessed a generation capacity of 122 TWh/year. Including new generation capacity put into operation in 2012 and 2013, and projects under construction, the existing capacity increases to 31.500 MW and 132.6 TWh/year.

An important characteristic of the Norwegian hydropower system is its large storage capacity, approximately 84 TWh, equivalent to 65% of the annual production. This represents almost 50% of

all electricity storage capacity in Europe, and offers great flexibility in production capacity. Regulated electricity production from hydropower is an ideal base to complement and balance the other unregulated renewable electricity generation technologies, such as solar and wind power. The flexibility in the regulation of hydropower can help to ensure quality delivery of such renewable energy sources and thus increase the overall production capacity and security of supply.

Challenges

Although hydropower technology is a mature technology in many areas, there are still significant research challenges related to the long-term build-up and optimal operation of the current system. This applies not only to technological solutions, but also to environmental impacts, social acceptance and the challenges in a changing climate. Internationally, there has been little focus on research in the hydropower sector, probably because this has been regarded as a mature technology, and because other renewable energy sources have been given higher priority. For Norway, where hydropower will account for the bulk of the energy supply in the foreseeable future, it therefore is a challenge to provide expertise to build, operate and develop the hydropower system under new conditions both with respect to climate, market, environmental and social acceptance. The Energi21 process identified a number of key research challenges for the hydropower sector, focusing on hydropower’s role in balancing power towards Europe. Challenges and research needs are also discussed in the “Energy report” (NOU 2012:9) and in NTVA’s Energy Strategy 2013-2017.

Outlook

There remains at present an untapped hydropower potential of about 34 TWh/year in Norway, within a development cost of 3-5 U.S. $/kWh, in addition to the approximately 50 TWh/year in rivers permanently protected against hydropower development. The potential for small plants (below 10 MW) is approximately 25 TWh/year. Currently, the construction or development permission has been granted for plants realizing a production of 3.7 TWh, while applications for a further 7.4 TWh, are being processed. For larger plants (plus upgrading and expanding existing power plants) there is a potential in the order of 7 TWh. In addition, many of the existing power plants may be redesigned for higher peaking capacity or equipped with reversible pump turbines utilizing existing upper and lower reservoirs. Here, the output potential is very large, exceeding a capacity 20.000 MW.

The hydropower sector (manufacturing) included 779 companies with 10.897 employees in 2010, with a total value of 32.1 billion. This value chain includes technology delivery, planning/engineering, development and production of power. In addition to value added in energy production, this also helps the supply industry, consultancy and R & D institutions to create value in the energy sector, which in hydropower amounts to 2.3 billion NOK in 2010. (NOU, 2012:9)

R&D recommendations:

• Mapping and improving the understanding of the environmental impacts of river systems by changing operating conditions.

• Design and construction technology for waterways under changed operating conditions.

• R&D focused pumped storage hydropower. policy recommendations:

• In order to prevent Water Resource

Conflicts, relations with the EU

Water Framework Directive and the

Floods Directive need to be

established and improved.

• Establish a new regulatory framework for the utilization of hydropower.

• Market design for hydropower use as balancing services.

• Efficient maintenance and refurbishing strategies for hydropower systems.