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<br />The size of the small-scale hydroelectric energy resource is difficult <br />to estimate due to a number of complicating factors. Regardless of the <br />actual size of the resource, however, it is limited in practical terms by <br />the economic feasibility of the sites. Many sites are not suitable for <br />development at today's energy prices. According to the U.S. Army Corps of <br />Engineers (1981), at least 2,000 sites of less than 15 MW generating <br />capacity could become economically feasible during the next few years; many <br />more feasible sites exist in the 15-30 MW range. Small-scale hydro capa- <br />city at existing dams is shown in Figure 1. It is evident that most <br />development potential is in two regions: the Pacific/Western Rocky <br />Mountain States (FWS Region 1) and the Northeastern States (FWS Region 5). <br />Most of the projects now under active consideration are less than 5 MW in <br />total rated capacity. There is some additional capacity in the very small <br />(mini-hydro) range that is not evident from Figure 1 because developers of <br />sma 11 pri vate projects often do not prepare formal economic feas ibil ity <br />studies; therefore, their projects are not included in resource surveys <br />limited to economically feasible projects. <br /> <br />Aided by attractive Federal incentives under PURPA (Public Utilities <br />Regulatory Policy Act) legislation, which requires utilities to transmit <br />and purchase electricity produced at high rates, allows developers to <br />claim, for development, SSH sites they do not own, and gives substantial <br />deductions from Federal taxes, small hydro projects became very popular in <br />the early 1980's (Table 1). Recently, activity has slowed somewhat, <br />probably due to a combination of reduced power demand during a recession, <br />high interest rates, and decreases in the cost of competing fuels. A large <br />amount of site assessment and design work was done in the 1970's, however, <br />which makes it likely that the number of active SSH projects would increase <br />rapidly should there be another energy "crisis." <br /> <br />The remaining sections of this Chapter summarize the most important <br />opportunities presented by the growth of small-scale hydroelectric develop- <br />ment and the conflicts with other resources that this technology may <br />present. <br /> <br />2.1 OPPORTUNITIES PRESENTED BY SMALL-SCALE HYDRO <br /> <br />2.1.1 Economic, Engineering, and Social Opportunities <br /> <br />Hydroelectric power is likely to become a more desirable power source for <br />the United States as other energy sources become more costly and less <br />available. Subject to the natural fluctuations in stream discharge, <br />uncertainties of supply as a result of strikes, embargoes, and technolog- <br />ical problems are less; local autonomy in energy is preserved; and many of <br />the problems of pollution, waste disposal, and land use associated with <br />other energy techno logi es are reduced or not present with hydropower. An <br />established hydro site can have a very long service life. Figure 2 por- <br />trays the Great Falls Hydroelectric Facil ity located in the Passaic River <br />in Paterson, New Jersey. Water power from this site was first developed in <br />1794. The present plant, which wi 11 be retrofitted, was bui It in 1914 <br />(U.S. Army Corps of Engineers 1979). <br /> <br />6 <br />