Input Stories

There are five “major gaps” standing between the U.S. and a solid domestic hydropower supply chain, a recent Department of Energy report found (Supply Chain Brain).

What’s going on: “A report from the DOE released on August 6 gathered feedback from stakeholders across the hydropower industry on their various struggles with suppliers, while proposing solutions to address each of those issues.” They are:

• Unpredictable and changing demand signals for hydropower components;
• Limited or nonexistent domestic materials and component suppliers;
• Development-inhibiting federal procurement regulations;
• Foreign competition, subsidies and ineffective trade policy; and
• A skilled-worker shortage.

Why it’s happening: Hydropower facilities last from 30 to 50 years, the report found, making planning for replacement parts over the course of decades difficult.

Why it’s important: Hydropower composes about 27% of renewable electricity generated in the U.S., and the DOE aims to reach 100% renewables by 2035.

What can be done: “[T]he DOE proposes a database to track and identify domestic hydropower suppliers, in addition to tools that highlight power unit specifications such as size and turbine type.”

• To address the materials and components shortage, the agency recommends that the hydropower sector “work with stakeholders in other sectors such as wind power, ship building and defense to identify common materials and parts they each use, and develop a ‘steady and predictable’ demand signal” so suppliers know when components are needed.

The NAM’s take: “Hydropower is a critical part of an all-of-the-above energy strategy,” said NAM Director of Energy and Resources Policy Michael Davin. “The ‘gaps’ identified by the DOE are further evidence of the need for a strong domestic manufacturing base and regulatory certainty.”