Licensing Process Impact
- Lengthy and Complex Procedures: PHES projects typically require a Federal Energy Regulatory Commission (FERC) hydropower license unless exempt. The default licensing path is the Integrated Licensing Process (ILP), which is comprehensive and designed to identify environmental, social, and technical issues upfront through public involvement, agency coordination, and scientific studies before a license application is filed. This process can take multiple years, often extending development timelines by five years or more.
- Three Licensing Options: Developers may request to use alternative processes—the Traditional Licensing Process (TLP) or the Alternative Licensing Process (ALP)—which require FERC approval. These can sometimes streamline certain aspects but still demand extensive information and stakeholder engagement. Choosing the appropriate process depends on project specifics and can influence the efficiency of licensing.
- Recent Expedited Pathways: To address these delays, FERC finalized an expedited licensing rule for original hydropower licenses in 2019. Additionally, a hydropower licensing reform package introduced a new three-year licensing process specifically for closed-loop and off-stream pumped storage facilities, helping to reduce regulatory uncertainty and shorten approval timelines for qualifying projects.
- Environmental and Stakeholder Review: The licensing process demands detailed environmental impact assessments under the National Environmental Policy Act (NEPA). This includes public scoping meetings, resource studies (e.g., water quality, recreation), and ongoing coordination with governmental agencies and stakeholders to mitigate potential adverse effects, all of which add time and complexity but are essential for sustainable development.
Construction Process Considerations
- Site-Specific Engineering and Construction Challenges: PHES construction requires significant civil engineering works—building upper and lower reservoirs, tunnels, and powerhouse equipment. The complexity and scale of construction depend on site geography, reservoir design, and environmental constraints, which are often identified during the licensing process, impacting cost and schedule.
- Delays Due to Licensing-Linked Uncertainties: Since construction typically cannot commence before securing the license, the protracted licensing stage can delay the start and increase financing costs. Environmental mitigation requirements from the license may also affect construction methods, timing, and overall feasibility.
Overall Effect on Development
The combined effect of extensive, multi-year licensing processes and complex construction requirements results in high upfront costs, lengthy development cycles, and elevated risks for PHES projects. However, recent regulatory reforms aimed at streamlined and expedited licensing for certain types of pumped storage help to mitigate some development barriers, potentially accelerating deployment of needed grid-scale energy storage solutions.
In summary, the FERC licensing process—with its detailed environmental reviews, stakeholder involvement, and multiple procedural pathways—largely determines the pace and viability of PHES projects. Construction complexities tied to site and license conditions further influence cost and timeline, making licensing and permitting the critical initial hurdles for pumped hydro development.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-licensing-and-construction-process-for-pumped-hydroelectric-energy-storage-systems-affect-their-development/
