The Industry
Hydro plants are capital intensive and closely regulated. The financial and regulatory burdens are especially great for small hydro plants, which do not benefit from economies-of-scale and are currently earning low electricity prices in the New England wholesale market. In recent years, New Hampshire and other New England states have adopted Renewable Portfolio Standard (RPS) programs that provide financial benefits to qualified renewables. RPS not only helps develop new renewables but also helps maintain existing ones which are already sited and providing benefits.
However, even with RPS programs, small hydro plants still face challenges. The plants generally run during off peak months of the year when market prices are low. With low prices development or new or expanded hydro power is not likely to be economical. Of even greater concern, many existing small hydro plants may not be able to sustain their operations and will be forced to shut down. This would be a very unfortunate outcome given the many advantages to New Hampshire from continued operation of small hydro.
Hydro plants are capital intensive and closely regulated. The financial and regulatory burdens are especially great for small hydro plants, which do not benefit from economies-of-scale and are currently earning low electricity prices in the New England wholesale market. In recent years, New Hampshire and other New England states have adopted Renewable Portfolio Standard (RPS) programs that provide financial benefits to qualified renewables. RPS not only helps develop new renewables but also helps maintain existing ones which are already sited and providing benefits.
However, even with RPS programs, small hydro plants still face challenges. The plants generally run during off peak months of the year when market prices are low. With low prices development or new or expanded hydro power is not likely to be economical. Of even greater concern, many existing small hydro plants may not be able to sustain their operations and will be forced to shut down. This would be a very unfortunate outcome given the many advantages to New Hampshire from continued operation of small hydro.
