The Potential for Small Scale Hydropower Development in the U.S.

Abstract

In an earlier paper (Kosnik, 2008), the potential for small scale hydro-power to contribute to U.S. renewable energy supplies, as well as reduce current carbon emissions, was investigated. It was discovered that thousands of viable sites capable of producing significant amounts of hydroelectric power were available throughout the United States. The primary objective of this paper is to determine the cost-effectiveness of developing these small scale hydro-power sites. Just because a site has the necessary topographical features to allow small scale hydro-power development, does not mean that it should be pursued from a cost-benefit perspective, even if it is a renewable energy resource with minimal effects on the environment. This analysis finds that while the average cost of developing small scale hydro-power is relatively high, there still remains hundreds of sites on the low end of the cost scale that are cost-effective to develop right now.

Keywords: hydropower, renewable energy, climate change, carbon emissions

JEL Classification: Q2, Q4