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The article discusses the challenges and opportunities associated with the large-scale hydropower system development in China. Topics covered include insights on topical areas of hydropower generation, transmission, and absorption, areas where the history of water resources systems research and modeling approaches can help address these challenges, and the need to model complex hydraulic and electrical relations in large-scale cascade hydropower systems.

Given the important role of hydropower in peak electricity management, Middle Eastern countries are actively pursuing development of more hydropower resources by construction of large dams. Nonetheless, climate change is expected to affect the future productivity of hydropower by influencing the hydrologic cycle and different climate variables in the region. Although reactive plans to minimize climate change impacts on hydropower production have been implemented in the developed world, the developing world can still benefit from proactive actions. Studies of climate change impacts before and during implementation of hydropower projects can result in timely responses and adaptation to climate change with a potential of considerable cost savings. This study investigates the potential impacts of climate change on the hydropower systems in the Karkheh River Basin-the third largest river basin in Iran-in terms of potential for hydroelectricity generation. A simulation model is developed to examine how hydropower generation levels vary for different future climate change scenarios in this representative Middle Eastern basin. The obtained results suggest that the existing operation rules and design specifications, developed based on the historical climatic conditions, can lead to inefficient operations of the hydropower in the basin. Because of insignificant streamflow reductions in the short term, hydropower production may not change considerably in the near future. However, a serious hydropower generation deficit is expected in the midterm and long-term horizons in the Karkheh River Basin. Therefore, adaptation to the future climate change conditions and revision of the operation rule curves and design specifications are essential to optimal hydropower operations in this basin. [ABSTRACT FROM AUTHOR]

This paper explores the independent and combined effects of changes in temperature and runoff volume on California's water supply and potential water management adaptations. Least-cost water supply system adaptation is explored for two climate scenarios: 1) warmer-drier conditions, and 2) warmer conditions without change in total runoff, using the CALVIN economic-engineering optimization model of California's intertied water supply system for 2050 water demands. The warm-dry hydrology was developed from downscaled effects of the GFDL CM2.1 (A2 emissions scenario) global climate model for a 30-year period centered at 2085. The warm-only scenario was developed from the warm-dry hydrology, preserving its seasonal runoff shift while maintaining mean annual flows from the historical hydrology. This separates the runoff volume and temperature effects of climate change on water availability and management adaptations. A warmer climate alone reduces water deliveries and increases costs, but much less than a warmer-drier climate, if the water supply system is well managed. Climate changes result in major changes in reservoir operations, cyclic storage of groundwater, and hydropower operations. [ABSTRACT FROM AUTHOR]

Abstract: Cooperative game theory solutions can provide useful insights into how parties may use water and environmental resources and share any benefits of cooperation. Here, a method based on Nash and Nash–Harsanyi bargaining solutions is developed to explore the Federal Energy Regulatory Commission (FERC) relicensing process, in which owners of non-federal hydropower projects in the United States have to negotiate their allowable operations, with other interest groups (mainly environmental). Linkage of games to expand the feasible solution range and the “strategic loss” concept are discussed and a FERC relicensing bargaining model is developed for studying the bargaining stage (third stage) of the relicensing process. Based on the suggested solution method, how the lack of incentive for cooperation results in long delay in FERC relicensing in practice is explained. Further, potential effects of climate change on the FERC relicensing are presented and how climate change may provide an incentive for cooperation among the parties to hasten the relicensing is discussed. An “adaptive FERC license” framework is proposed, based on cooperative game theory, to improve the performance and adaptability of the system to future changes with no cost to the FERC, in face of uncertainty about future hydrological and ecological conditions. [ABSTRACT FROM AUTHOR]

California's hydropower system is composed of high and low elevation power plants. There are more than 150 high-elevation power plants, at elevations above 1,000 feet (300 m). Most have modest reservoir storage capacities, but supply roughly 74% of California's in-state hydropower. The expected shift of runoff peak from spring to winter due to climate warming, resulting in snowpack reduction and increased snowmelt, might have important effects on power generation and revenues in California. The large storage capacities at low-elevation power plants provide flexibility to operations of these units under climate warming. However, with climate warming, the adaptability of the high-elevation hydropower system is in question as this system was designed to take advantage of snowpack, a natural reservoir. With so many high-elevation hydropower plants in California, estimation of climate warming effects by conventional simulation or optimization methods would be tedious and expensive. An Energy-Based Hydropower Optimization Model (EBHOM) was developed to facilitate practical climate change and other low-resolution system-wide hydropower studies, based on the historical generation data of 137 high-elevation hydropower plants for which the data were complete for 14 years. Employing recent historical hourly energy prices, the model was used to explore energy generation in California for three climate warming scenarios (dry warming, wet warming, and warming-only) over 14 years, representing a range of hydrologic conditions. The system is sensitive to the quantity and timing of inflows. While dry warming and warming-only climate changes reduce average hydropower revenues, wet warming could increase revenue. Re-operation of available storage and generation capacities help compensate for snowpack losses to some extent. Storage capacity expansion and to a lesser extent generation capacity expansion both increase revenues, although such expansions might not be cost-effective. [ABSTRACT FROM AUTHOR]

Reforms currently under way in China's electricity markets bear important implications for its decarbonization objectives. The southwestern province of Yunnan is among the provinces piloting the current iteration of power market reforms. As such, lessons from Yunnan will inform future market reform and renewable energy policies in China and potentially elsewhere. The dominance of hydropower in Yunnan's energy portfolio and the particular transmission constraints it faces, offer an interesting case study of the challenges of decarbonization. We report on market architecture reforms and aggregate market data collected from the Yunnan Power Exchange. We review four elements in the reformed market architecture. Market pricing rules, transitional quantity controls, the generation rights market, and inter-provincial trade. The specifics of market reform reflect a compromise between decarbonization, inter-provincial competition, grid security and development objectives and contribute to understanding of how the dual transitions of hydropower decarbonization and market liberalization interact. We conclude on six insights regarding the role of the grid operator, security checks on trade, integration of cascade hydropower, the inclusion of renewables in the generation rights market, price controls, and market participant price uncertainty. [ABSTRACT FROM AUTHOR]