Impact Of Diminishing Hydroelectric Output Could Be Made Worse Through Proposed Renewable Energy Standards
California’s worsening drought is raising fears that reduced water flow could stifle hydroelectric energy production across the region. California derives more than eight percent of its electricity from hydro power, which has traditionally been viewed as a stable source of power, free from the commodity price fluctuations of coal and natural gas and the changing availability of solar and wind power. Water shortages in other states also have the potential of affecting the electricity supply since California imports 30 percent of its power from elsewhere in the country.
What This Means For Small Business
Any prolonged loss of power generation capability from existing power plants has the potential to raise utility rates. However, politicians in Sacramento could make the situation worse. Some Democrats in California’s legislature are backing Senate Bill 350, a controversial measure to increase the state’s use of renewable energy sources to 50 percent. The bill would also require a balance of different renewable sources of power, including hydroelectricity. California’s power grid fills in power shortages with natural gas and other fossil fuel power plants. SB350 aims to reduce the ability of power providers to use these sources, limiting their flexibility.
Water and electricity are intertwined at several levels. Water pumping and purifying requires large amounts of power, so current renewable energy regulations exempt the Department of Water Resources (DWR). The official Senate analysis of SB350 raises the possibility of incorporating DWR into its tougher standards. As Newsweek noted in a 5,000-word cover story, California water officials are exploring innovative technologies to address the water crisis. New designs being evaluated include desalination and the Groundwater Replenishment System (GWRS), which Newsweek calls “the world’s largest indirect potable-water system.” These systems require electricity, and applying fresh restrictions to the agency could increase water costs as well as energy rates and make agencies less nimble in their responses to the drought.
Additional Reading
Other outlets covering the drought’s impact include the Washington Post, the New York Times, the Sacramento (CA) Bee, the Western Farm Press, and an op-ed in the Wall Street Journal.
