Task 9

The White Paper describes the role of hydropower and the need for flexibility in the future electricity system, aiming to provide a high-level overview of key issues with the intent of identifying priority areas for furtherin-depth reviews and analyses. As increasing shares ofvariable renewable energy  sources (VRE) are integrated into electricity systems, the need for flexibility and energy storage at timescales ranging from milli-seconds
to months arise. Hydropower is the largest source of renewable energy today, with hydropower and pumped hydro storage playing an important role in integrating and balancing VRE.

IEA Hydro’s work on Valuing Hydropower Services (Annex IX) included a multi-country review that investigated the many factors contributing to the full value of hydropower and its associated services. It is apparent that in many jurisdictions, the multiple value chains are not always appropriately recognised. As power systems transition and hydropower adjusts to new operating conditions, utilizing new or existing technologies, IEA Hydro members believe it is essential that policy, regulatory and financial instruments evolve to appropriately recognise the important contributions that hydropower provides. Understanding these roles was an objective of the Summary Report, which covers:

• Services provided to energy security, water security and sustainable development
• Basic methodological concepts to assess the value of services
• Suitable economic assessment approaches to quantify the value of services
• Preliminary valuations of key energy and water management services
• Initial assessment of the appropriate valuation methods for each service
• Basic methodologies to estimate fair allocation of costs between various stakeholders

IEA Hydro’s work on Valuing Hydropower Services (Annex IX) included a multi-country review that investigated the many factors contributing to the full value of hydropower and its associated services. It is apparent that in many jurisdictions, the multiple value chains are not always appropriately recognised. As power systems transition and hydropower adjusts to new operating conditions, utilizing new or existing technologies, IEA Hydro members believe it is essential that policy, regulatory and financial instruments evolve to appropriately recognise the important contributions that hydropower provides. Understanding these roles was an objective of the Summary Report, which covers:

• Services provided to energy security, water security and sustainable development
• Basic methodological concepts to assess the value of services
• Suitable economic assessment approaches to quantify the value of services
• Preliminary valuations of key energy and water management services
• Initial assessment of the appropriate valuation methods for each service
• Basic methodologies to estimate fair allocation of costs between various stakeholders