Hydropower: How Canada-U.S. Partnerships Contribute to America’s Clean Energy Economy

On December 7, 2011, the Environmental and Energy Study Institute (EESI) hosted a briefing on the growing cooperative relationship between U.S. utilities and the Canadian hydroelectric industry. Hydropower is a proven technology, with a history of reliability and affordability. In addition, hydropower can store energy, it can respond to fluctuating demands for electricity and, therefore, can be a backstop source to more intermittent U.S. resources like wind and solar.

The briefing covered topics such as the existing regional relationships between states and provinces, a comparison of development practices and regulations, and how U.S.-Canadian partnerships bolster U.S. economic development.

Canadian-sourced hydro electric power contributes to the energy supply in various regional markets, like New England/Quebec and Upper Midwest/Manitoba. Canadian hydropower has comparable regulatory requirements to the United States. The National Association of Regulatory Utility Commissioners (NARUC) recently passed a resolution recognizing all North American hydropower as a renewable energy resource that warrants consideration in regional and national clean energy mandates.

• Sixty percent of electricity in Canada is produced by hydropower and there is 75,000 MW of capacity installed. Canada is currently planning to install 25,000 MW more hydro.
• Seven percent of electricity in the United States is produced by hydropower and there is currently 96,000 MW of capacity installed across 2,400 utilities. Hydro is responsible for 67 percent of U.S. renewable energy generation.
• Canadian and U.S. economies are some of the most integrated in the world.
• Canadian and U.S. transmission grids are strongly interconnected North-South, but are not optimized East-West within their individual countries.
• In North America there is potential to double the existing hydropower capacities.
• Hydropower generation is a very low emitter of greenhouse gases (GHGs) – comparable to wind – and often has fewer GHG emissions than wind on a life cycle basis.
• There are both bad and good ways to develop hydropower. Today’s standards and technologies are far superior to those 40 years ago, with better regulation, water management, and critical consideration to fish habitat and passage.
• Canada is now developing partnerships with their First Nations who often serve as long range consultants and equity partners.
• New England and Quebec markets have complementary hydroelectric power demands – New England markets peak with cooling in summer months and Quebec markets peak with heating in winter months.
• Reservoir-based hydropower is dispatchable and can be used as a battery to store intermittent power sources such as solar and wind power. In years of drought, Canada can import U.S. wind power, and also can store it during wind surplus years.
• Regional transmission expansion for hydropower can connect other renewable energies and would be a lower cost overall due to economies of sale. A study showed that every $1 billion invested in U.S. transmission infrastructure resulted in $2.4 billion in economic output and 13,000 equivalent years of employment.
• Hydro and regional transmission systems work efficiently, taking into consideration hourly, daily, seasonal, and annual supply and demand, optimizing operations and reducing costs for consumers.

This briefing was organized with support from Manitoba Hydro, Hydro Quebec, the Embassy of Canada, the Government of Manitoba and the Government of Quebec.