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58-543: There have been windfall taxes in various countries across the world, including Australia, Italy, and Mongolia (2006–2009). During the 2021–2023 global energy crisis , policy specialists at the International Monetary Fund recommended that governments institute permanent windfall profits taxes targeted at economic rents in the energy sector, excluding renewable energy to prevent hindering its further development. Thomas Baunsgaard and Nate Verson of

116-745: A greenhouse gas . According to the World Commission on Dams report, where the reservoir is large compared to the generating capacity (less than 100 watts per square metre of surface area) and no clearing of the forests in the area was undertaken prior to impoundment of the reservoir, greenhouse gas emissions from the reservoir may be higher than those of a conventional oil-fired thermal generation plant. In boreal reservoirs of Canada and Northern Europe, however, greenhouse gas emissions are typically only 2% to 8% of any kind of conventional fossil-fuel thermal generation. A new class of underwater logging operation that targets drowned forests can mitigate

174-463: A low-head hydro power plant with hydrostatic head of few meters to few tens of meters can be classified either as an SHP or an LHP. The other distinction between SHP and LHP is the degree of the water flow regulation: a typical SHP primarily uses the natural water discharge with very little regulation in comparison to an LHP. Therefore, the term SHP is frequently used as a synonym for the run-of-the-river power plant . The largest power producers in

232-457: A 90% excess profits tax on energy companies. The Greek energy minister justified this decision by stating, "Our primary concern is to maintain affordable prices on consumer bills until the end of this major, pan-European energy crisis." The tax revenues were used to subsidize energy prices. In November 2022, the Dutch government introduced a temporary windfall tax as a strategic response to mitigate

290-538: A capacity-based tax. While neither are windfall taxes, they were raised in 2008 due to higher windfall profits. In 2009, Norway, where hydro-electric power plants supply 99% of the country's electricity, similarly imposed a ground rent tax on hydro-electric power plants to reduce their profits by 30%. Mongolia implemented in 2006 taxation on the profits made by mining companies operating in Mongolia . A tax on unsmelted copper and gold concentrate produced in Mongolia, it

348-421: A flood and fail. Changes in the amount of river flow will correlate with the amount of energy produced by a dam. Lower river flows will reduce the amount of live storage in a reservoir therefore reducing the amount of water that can be used for hydroelectricity. The result of diminished river flow can be power shortages in areas that depend heavily on hydroelectric power. The risk of flow shortage may increase as

406-494: A hydroelectric complex is constructed, it produces no direct waste, and almost always emits considerably less greenhouse gas than fossil fuel -powered energy plants. However, when constructed in lowland rainforest areas, where part of the forest is inundated, substantial amounts of greenhouse gases may be emitted. Construction of a hydroelectric complex can have significant environmental impact, principally in loss of arable land and population displacement. They also disrupt

464-809: A large natural height difference between two waterways, such as a waterfall or mountain lake. A tunnel is constructed to take water from the high reservoir to the generating hall built in a cavern near the lowest point of the water tunnel and a horizontal tailrace taking water away to the lower outlet waterway. A simple formula for approximating electric power production at a hydroelectric station is: P = − η   ( m ˙ g   Δ h ) = − η   ( ( ρ V ˙ )   g   Δ h ) {\displaystyle P=-\eta \ ({\dot {m}}g\ \Delta h)=-\eta \ ((\rho {\dot {V}})\ g\ \Delta h)} where Efficiency

522-451: A larger amount of methane than those in temperate areas. Like other non-fossil fuel sources, hydropower also has no emissions of sulfur dioxide, nitrogen oxides, or other particulates. Reservoirs created by hydroelectric schemes often provide facilities for water sports , and become tourist attractions themselves. In some countries, aquaculture in reservoirs is common. Multi-use dams installed for irrigation support agriculture with

580-592: A positive risk adjusted return, unless appropriate risk management measures are put in place. While many hydroelectric projects supply public electricity networks, some are created to serve specific industrial enterprises. Dedicated hydroelectric projects are often built to provide the substantial amounts of electricity needed for aluminium electrolytic plants, for example. The Grand Coulee Dam switched to support Alcoa aluminium in Bellingham, Washington , United States for American World War II airplanes before it

638-548: A relatively constant water supply. Large hydro dams can control floods, which would otherwise affect people living downstream of the project. Managing dams which are also used for other purposes, such as irrigation , is complicated. In 2021 the IEA called for "robust sustainability standards for all hydropower development with streamlined rules and regulations". Large reservoirs associated with traditional hydroelectric power stations result in submersion of extensive areas upstream of

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696-540: A result of climate change . One study from the Colorado River in the United States suggest that modest climate changes, such as an increase in temperature in 2 degree Celsius resulting in a 10% decline in precipitation, might reduce river run-off by up to 40%. Brazil in particular is vulnerable due to its heavy reliance on hydroelectricity, as increasing temperatures, lower water flow and alterations in

754-448: A small TV/radio). Even smaller turbines of 200–300 W may power a few homes in a developing country with a drop of only 1 m (3 ft). A Pico-hydro setup is typically run-of-the-river , meaning that dams are not used, but rather pipes divert some of the flow, drop this down a gradient, and through the turbine before returning it to the stream. An underground power station is generally used at large facilities and makes use of

812-455: A source of low-cost renewable energy. Alternatively, small hydro projects may be built in isolated areas that would be uneconomic to serve from a grid, or in areas where there is no national electrical distribution network. Since small hydro projects usually have minimal reservoirs and civil construction work, they are seen as having a relatively low environmental impact compared to large hydro. This decreased environmental impact depends strongly on

870-414: A start-up time of the order of a few minutes. Although battery power is quicker its capacity is tiny compared to hydro. It takes less than 10 minutes to bring most hydro units from cold start-up to full load; this is quicker than nuclear and almost all fossil fuel power. Power generation can also be decreased quickly when there is a surplus power generation. Hence the limited capacity of hydropower units

928-831: A tool for efficiently taxing economic rents , which are often a result of monopolistic power or unexpected events like pandemics, war, or natural disasters, and contribute to windfall profits. Such profits have raised public and policy concerns about price gouging , where firms are perceived to be profiting excessively from unforeseen circumstances. Eric Levitz argues that these taxes are worth pursuing as it would incentivize producers to invest in lowering prices during times of supply shocks by expanding production instead of giving out dividends to shareholders. In 2022, Joseph Stiglitz argued for windfall profit taxes for oil and gas in Australia to disincentivize raising prices. In 2022, an informal survey of 33 American and European economists at

986-581: A total of 1,500 terawatt-hours (TWh) of electrical energy in one full cycle" which was "about 170 times more energy than the global fleet of pumped storage hydropower plants". Battery storage capacity is not expected to overtake pumped storage during the 2020s. When used as peak power to meet demand, hydroelectricity has a higher value than baseload power and a much higher value compared to intermittent energy sources such as wind and solar. Hydroelectric stations have long economic lives, with some plants still in service after 50–100 years. Operating labor cost

1044-476: A windfall profits tax on energy sources like coal . Polling by the Australia Institute as well as Oxfam showed more than two-thirds of Australians supported windfall profit taxes. For fiscal years 2022 and 2023, The EU asked energy companies to return 33% of taxable surplus profits to governments to help fund energy affordability and address shortages. Rapid drop of photovoltaic equipment in

1102-452: Is hydroelectric power on a scale serving a small community or industrial plant. The definition of a small hydro project varies but a generating capacity of up to 10 megawatts (MW) is generally accepted as the upper limit. This may be stretched to 25 MW and 30 MW in Canada and the United States. Small hydro stations may be connected to conventional electrical distribution networks as

1160-635: Is also usually low, as plants are automated and have few personnel on site during normal operation. Where a dam serves multiple purposes, a hydroelectric station may be added with relatively low construction cost, providing a useful revenue stream to offset the costs of dam operation. It has been calculated that the sale of electricity from the Three Gorges Dam will cover the construction costs after 5 to 8 years of full generation. However, some data shows that in most countries large hydropower dams will be too costly and take too long to build to deliver

1218-470: Is highest in the winter when solar energy is at a minimum. Pico hydro is hydroelectric power generation of under 5 kW . It is useful in small, remote communities that require only a small amount of electricity. For example, the 1.1 kW Intermediate Technology Development Group Pico Hydro Project in Kenya supplies 57 homes with very small electric loads (e.g., a couple of lights and a phone charger, or

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1276-445: Is initially produced during construction of the project, and some methane is given off annually by reservoirs, hydro has one of the lowest lifecycle greenhouse gas emissions for electricity generation. The low greenhouse gas impact of hydroelectricity is found especially in temperate climates . Greater greenhouse gas emission impacts are found in the tropical regions because the reservoirs of power stations in tropical regions produce

1334-462: Is not an energy source, and appears as a negative number in listings. Run-of-the-river hydroelectric stations are those with small or no reservoir capacity, so that only the water coming from upstream is available for generation at that moment, and any oversupply must pass unused. A constant supply of water from a lake or existing reservoir upstream is a significant advantage in choosing sites for run-of-the-river. A tidal power station makes use of

1392-452: Is not generally used to produce base power except for vacating the flood pool or meeting downstream needs. Instead, it can serve as backup for non-hydro generators. The major advantage of conventional hydroelectric dams with reservoirs is their ability to store water at low cost for dispatch later as high value clean electricity. In 2021, the IEA estimated that the "reservoirs of all existing conventional hydropower plants combined can store

1450-410: Is often higher (that is, closer to 1) with larger and more modern turbines. Annual electric energy production depends on the available water supply. In some installations, the water flow rate can vary by a factor of 10:1 over the course of a year. Hydropower is a flexible source of electricity since stations can be ramped up and down very quickly to adapt to changing energy demands. Hydro turbines have

1508-679: The Bonneville Dam in 1937 and being recognized by the Flood Control Act of 1936 as the premier federal flood control agency. Hydroelectric power stations continued to become larger throughout the 20th century. Hydropower was referred to as "white coal". Hoover Dam 's initial 1,345 MW power station was the world's largest hydroelectric power station in 1936; it was eclipsed by the 6,809 MW Grand Coulee Dam in 1942. The Itaipu Dam opened in 1984 in South America as

1566-530: The IGM forum found majority support for taxing windfall profits. In 2023, a group co-directed by Thomas Piketty suggested taxing windfalls from excess profits. As of 2023, Isabella Weber has also been advocating for windfall profit taxes. A 2008 Wall Street Journal editorial argued that income taxes incentivize companies to make more profits which results in more tax revenue. A 2022 Reason article argued against windfall taxes. Queensland, Australia has

1624-806: The International Exhibition of Hydropower and Tourism , with over one million visitors 1925. By 1920, when 40% of the power produced in the United States was hydroelectric, the Federal Power Act was enacted into law. The Act created the Federal Power Commission to regulate hydroelectric power stations on federal land and water. As the power stations became larger, their associated dams developed additional purposes, including flood control , irrigation and navigation . Federal funding became necessary for large-scale development, and federally owned corporations, such as

1682-633: The Tennessee Valley Authority (1933) and the Bonneville Power Administration (1937) were created. Additionally, the Bureau of Reclamation which had begun a series of western US irrigation projects in the early 20th century, was now constructing large hydroelectric projects such as the 1928 Hoover Dam . The United States Army Corps of Engineers was also involved in hydroelectric development, completing

1740-583: The Vulcan Street Plant , began operating September 30, 1882, in Appleton, Wisconsin , with an output of about 12.5 kilowatts. By 1886 there were 45 hydroelectric power stations in the United States and Canada; and by 1889 there were 200 in the United States alone. At the beginning of the 20th century, many small hydroelectric power stations were being constructed by commercial companies in mountains near metropolitan areas. Grenoble , France held

1798-506: The potential energy of dammed water driving a water turbine and generator . The power extracted from the water depends on the volume and on the difference in height between the source and the water's outflow. This height difference is called the head . A large pipe (the " penstock ") delivers water from the reservoir to the turbine. This method produces electricity to supply high peak demands by moving water between reservoirs at different elevations. At times of low electrical demand,

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1856-463: The IEA released a main-case forecast of 141 GW generated by hydropower over 2022–2027, which is slightly lower than deployment achieved from 2017–2022. Because environmental permitting and construction times are long, they estimate hydropower potential will remain limited, with only an additional 40 GW deemed possible in the accelerated case. In 2021 the IEA said that major modernisation refurbishments are required. Most hydroelectric power comes from

1914-457: The IMF recommend implementing permanent windfall profit taxes on fossil fuel extraction but not temporary taxes or taxes on renewable energy . The taxes should always target a clear measure of excess profits and not be tied to price levels or revenue. They also recommend ensuring that markets can add new capacity quickly if-needed to avoid a spike in prices. Another 2022 IMF paper argues these taxes are

1972-490: The Wikimedia System Administrators, please include the details below. Request from 172.68.168.132 via cp1112 cp1112, Varnish XID 941672032 Upstream caches: cp1112 int Error: 429, Too Many Requests at Thu, 28 Nov 2024 07:57:04 GMT Hydroelectricity Hydroelectricity , or hydroelectric power , is electricity generated from hydropower (water power). Hydropower supplies 15% of

2030-464: The ability to transport particles heavier than itself downstream. This has a negative effect on dams and subsequently their power stations, particularly those on rivers or within catchment areas with high siltation. Siltation can fill a reservoir and reduce its capacity to control floods along with causing additional horizontal pressure on the upstream portion of the dam. Eventually, some reservoirs can become full of sediment and useless or over-top during

2088-595: The balance between stream flow and power production. Micro hydro means hydroelectric power installations that typically produce up to 100 kW of power. These installations can provide power to an isolated home or small community, or are sometimes connected to electric power networks. There are many of these installations around the world, particularly in developing nations as they can provide an economical source of energy without purchase of fuel. Micro hydro systems complement photovoltaic solar energy systems because in many areas water flow, and thus available hydro power,

2146-404: The daily rise and fall of ocean water due to tides; such sources are highly predictable, and if conditions permit construction of reservoirs, can also be dispatchable to generate power during high demand periods. Less common types of hydro schemes use water's kinetic energy or undammed sources such as undershot water wheels . Tidal power is viable in a relatively small number of locations around

2204-505: The dams, sometimes destroying biologically rich and productive lowland and riverine valley forests, marshland and grasslands. Damming interrupts the flow of rivers and can harm local ecosystems, and building large dams and reservoirs often involves displacing people and wildlife. The loss of land is often exacerbated by habitat fragmentation of surrounding areas caused by the reservoir. Hydroelectric projects can be disruptive to surrounding aquatic ecosystems both upstream and downstream of

2262-658: The decontrol of crude oil prices . The Act was intended to recoup the revenue earned by oil producers as a result of the sharp increase in oil prices brought about by the OPEC oil embargo . According to a report by the Congressional Research Service , the Act's title was a misnomer as it was just an excise tax imposed on the difference between the market price of oil and a 1979 base price adjusted for inflation and severance taxes . The report also stated that

2320-705: The effect of forest decay. Another disadvantage of hydroelectric dams is the need to relocate the people living where the reservoirs are planned. In 2000, the World Commission on Dams estimated that dams had physically displaced 40–80 million people worldwide. Because large conventional dammed-hydro facilities hold back large volumes of water, a failure due to poor construction, natural disasters or sabotage can be catastrophic to downriver settlements and infrastructure. During Typhoon Nina in 1975 Banqiao Dam in Southern China failed when more than

2378-551: The energy sector. Finland announced its intention to tax windfall profits at large nuclear and hydro plants built before 1997 by 2010 or 2011. As non-CO2 emitting electricity generators, these plants have all seen their profits increase because of the European Union Emissions Trading System . As of 2009, in Sweden, hydroelectricity is subject to a property tax and nuclear power plants to

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2436-399: The excess generation capacity is used to pump water into the higher reservoir, thus providing demand side response . When the demand becomes greater, water is released back into the lower reservoir through a turbine. In 2021 pumped-storage schemes provided almost 85% of the world's 190 GW of grid energy storage and improve the daily capacity factor of the generation system. Pumped storage

2494-626: The government of Tony Blair introduced a Windfall Tax for privatised utility companies. In May 2022, Rishi Sunak introduced the tax for energy companies extracting oil and gas in the UK, to help fund a package to relieve the UK cost of living crisis . The Crude Oil Windfall Profit Tax Act of 1980 (P.L. 96-223) was part of a compromise between the Carter Administration and the Congress over

2552-443: The impact of surging energy prices. This 33% tax targets companies operating within the oil, natural gas, coal, and petroleum refining industries. The tax applies to profits that exceed the average profit margins of these sectors by more than 20% during the reference period from 2018 to 2021, as specified by the ministry. This measure is intended to buffer the financial shock experienced by consumers and stabilize market fluctuations in

2610-501: The largest amount for the region since 1990. Meanwhile, globally, hydropower generation increased by 70 TWh (up 2%) in 2022 and remains the largest renewable energy source, surpassing all other technologies combined. Hydropower has been used since ancient times to grind flour and perform other tasks. In the late 18th century hydraulic power provided the energy source needed for the start of the Industrial Revolution . In

2668-750: The largest, producing 14 GW , but was surpassed in 2008 by the Three Gorges Dam in China at 22.5 GW . Hydroelectricity would eventually supply some countries, including Norway , Democratic Republic of the Congo , Paraguay and Brazil , with over 85% of their electricity. In 2021 the International Energy Agency (IEA) said that more efforts are needed to help limit climate change . Some countries have highly developed their hydropower potential and have very little room for growth: Switzerland produces 88% of its potential and Mexico 80%. In 2022,

2726-616: The late 19th century, the electrical generator was developed and could now be coupled with hydraulics. The growing demand arising from the Industrial Revolution would drive development as well. In 1878, the world's first hydroelectric power scheme was developed at Cragside in Northumberland , England, by William Armstrong . It was used to power a single arc lamp in his art gallery. The old Schoelkopf Power Station No. 1 , US, near Niagara Falls , began to produce electricity in 1881. The first Edison hydroelectric power station,

2784-488: The mid-1700s, French engineer Bernard Forest de Bélidor published Architecture Hydraulique , which described vertical- and horizontal-axis hydraulic machines, and in 1771 Richard Arkwright 's combination of water power , the water frame , and continuous production played a significant part in the development of the factory system, with modern employment practices. In the 1840s, hydraulic power networks were developed to generate and transmit hydro power to end users. By

2842-651: The natural ecology of the river involved, affecting habitats and ecosystems, and siltation and erosion patterns. While dams can ameliorate the risks of flooding, dam failure can be catastrophic. In 2021, global installed hydropower electrical capacity reached almost 1,400 GW, the highest among all renewable energy technologies. Hydroelectricity plays a leading role in countries like Brazil, Norway and China. but there are geographical limits and environmental issues. Tidal power can be used in coastal regions. China added 24 GW in 2022, accounting for nearly three-quarters of global hydropower capacity additions. Europe added 2 GW,

2900-574: The period 2011 to 2013 has created windfall profits conditions due to lagging response of regulators by adjustment of feed-in tariffs. Regulators in Spain, Greece, Bulgaria and Romania have introduced retroactive incentive reductions. In the Czech Republic a windfall tax has been introduced on solar electricity and further clampdown of solar power companies was considered in 2014. In November 2022, Greece responded to soaring energy prices by imposing

2958-633: The plant site. Generation of hydroelectric power changes the downstream river environment. Water exiting a turbine usually contains very little suspended sediment, which can lead to scouring of river beds and loss of riverbanks. The turbines also will kill large portions of the fauna passing through, for instance 70% of the eel passing a turbine will perish immediately. Since turbine gates are often opened intermittently, rapid or even daily fluctuations in river flow are observed. Drought and seasonal changes in rainfall can severely limit hydropower. Water may also be lost by evaporation. When water flows it has

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3016-450: The rainfall regime, could reduce total energy production by 7% annually by the end of the century. Lower positive impacts are found in the tropical regions. In lowland rainforest areas, where inundation of a part of the forest is necessary, it has been noted that the reservoirs of power plants produce substantial amounts of methane . This is due to plant material in flooded areas decaying in an anaerobic environment and forming methane,

3074-399: The tax only generated $ 40 billion in net revenue though it was projected to generate $ 175 billion, and because the tax was an excise tax on oil produced domestically in the United States and not imposed on imported oil, it reduced domestic oil production by 1–5% while dependence on imported oil increased by 3–13%. Windfall tax (Mongolia) Too Many Requests If you report this error to

3132-524: The world are hydroelectric power stations, with some hydroelectric facilities capable of generating more than double the installed capacities of the current largest nuclear power stations . Although no official definition exists for the capacity range of large hydroelectric power stations, facilities from over a few hundred megawatts are generally considered large hydroelectric facilities. Currently, only seven facilities over 10 GW ( 10,000 MW ) are in operation worldwide, see table below. Small hydro

3190-533: The world's electricity , almost 4,210 TWh in 2023, which is more than all other renewable sources combined and also more than nuclear power . Hydropower can provide large amounts of low-carbon electricity on demand, making it a key element for creating secure and clean electricity supply systems. A hydroelectric power station that has a dam and reservoir is a flexible source, since the amount of electricity produced can be increased or decreased in seconds or minutes in response to varying electricity demand. Once

3248-539: The world. The classification of hydropower plants starts with two top-level categories: The classification of a plant as an SHP or LHP is primarily based on its nameplate capacity , the threshold varies by the country, but in any case a plant with the capacity of 50 MW or more is considered an LHP. As an example, for China, SHP power is below 25 MW, for India - below 15 MW, most of Europe - below 10 MW. The SHP and LHP categories are further subdivided into many subcategories that are not mutually exclusive. For example,

3306-586: Was allowed to provide irrigation and power to citizens (in addition to aluminium power) after the war. In Suriname , the Brokopondo Reservoir was constructed to provide electricity for the Alcoa aluminium industry. New Zealand 's Manapouri Power Station was constructed to supply electricity to the aluminium smelter at Tiwai Point . Since hydroelectric dams do not use fuel, power generation does not produce carbon dioxide . While carbon dioxide

3364-463: Was the highest windfall tax in the world. The tax was repealed in 2009 and phased out over two years. Repealing the 68% tax law was considered essential to enable foreign mining companies to invest in mineral resources development of Mongolia. In the United Kingdom , an early one-off windfall tax was levied on certain bank deposits as part of the 1981 budget under Margaret Thatcher. In 1997,

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