Drought in US West Has Cost Hydropower Industry Billions in Losses

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Drought in the West has cost hydropower industry billions in losses in two decades, analysis finds

A visibly low water level is present in this aerial view of Enterprise Bridge on Lake Oroville in Butte County, California. On October 28, 2021, the storage was 970,851 reservoir acre-feet, which is 27 percent of total capacity

Persistent drought in the West over the last two decades has limited the amount of electricity that hydropower dams can generate, costing the industry and the region billions of dollars in revenue. The sector lost about 300 million megawatt hours of power generation between 2003 and 2020 due to drought and low water compared with the long-term average, researchers from the University of Alabama found. That equals about $28 billion in lost revenue. Half of the drop in power generation was due to drought in Oregon, Washington and California, which produce half the hydropower generated in the U.S.

When there isn’t enough hydropower available, utilities are forced to purchase energy from fossil fuel producers, mostly from natural gas companies, that drive up emissions. The purchase of gas-powered electricity to supplement a lack of hydropower drove carbon dioxide emissions up 10% over the 18 years, the study found.

To reach their conclusions, the researchers analyzed stream flows from hydro-generating facilities across the U.S. from 2003 to 2023, and compared them with drought maps over that same period. They noted that droughts in the Western states were more severe and more frequent than in other parts of the U.S., causing the most significant losses.to historically low levels last year. Both Oregon and Washington generated 20% less hydropower in 2023 than in 2021. The U.S.

 

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