The persistent drought in the West has significantly limited the electricity generation capacity of hydropower dams over the past two decades. As a result, both the industry and the region have suffered substantial financial losses, amounting to billions of dollars in revenue.
According to researchers from the University of Alabama, the power sector experienced a significant loss of approximately 300 million megawatt hours of power generation between 2003 and 2020. This loss was primarily attributed to drought and low water levels, resulting in a substantial decline in revenue amounting to around $28 billion. Notably, half of the decline in power generation can be attributed to drought conditions in Oregon, Washington, and California, which collectively contribute to half of the hydropower generated in the United States.
The findings of the researchers were published on July 23 in the journal “Environmental Research Letters.”
RELATED STORIES
The decline in power production has had a significant financial and environmental impact on three states. In California, economic losses surpassed $8.7 billion, while Washington experienced losses of over $4 billion. Oregon’s hydroelectricity sector alone suffered a revenue loss of more than $1.5 billion during this 18-year period.
When there is a shortage of hydropower, utilities have no choice but to buy energy from fossil fuel producers, mainly natural gas companies. This reliance on gas-powered electricity to compensate for the lack of hydropower has led to a 10% increase in carbon dioxide emissions over the course of 18 years, according to the study.
The researchers conducted an analysis of stream flows from hydro-generating facilities across the U.S. from 2003 to 2023, in conjunction with drought maps over the same period, to arrive at their findings. They observed that droughts occurring in the Western states were not only more frequent but also more severe compared to other regions in the U.S., resulting in the most significant losses.
Hydropower electricity generated from dams in Oregon and Washington experienced a significant decline last year, reaching historically low levels. In comparison to 2021, both states saw a decrease of 20% in hydropower production in 2023. The U.S. Energy Information Administration attributes this decline to lower precipitation during the fall and winter seasons, along with the occurrence of a “heat dome” in May 2023. The heat dome led to regional temperatures soaring 30 degrees above the average, causing the rapid melting of snowpack that typically sustains rivers and streams throughout the summer. Experts from the federal agency predict that hydropower generation across the Western region will decline by 12% in 2024 compared to 2023, further exacerbating the historic lows.
