Extreme Weather Events Cause Grid Instability
Severe weather events, such as extreme temperatures, drought, and wildfires, are redefining baseline operating assumptions and igniting grid reliability concerns. For example, sustained extreme heat strains energy infrastructure, compromising energy generation and transmission. Grids that confront extreme weather events, especially those bearing aging assets, risk experiencing power outages that impact millions of people. Thus, when electricity is shut off, the utmost priority is placing facilities back into safe and efficient operation. As legacy grid models increasingly buckle under harsh conditions, hydropower projects prove to be an invaluable asset in achieving long-term grid reliability.
Hydropower Provides Essential Black Start Services
One avenue to restore operation of the power grid is to leverage the “black start” capabilities of hydropower projects. Black start units are generating plants equipped with on-site power sources that can restore power to the grid in minutes, unaided by an external power source. Hydropower units currently comprise 37-40% of all registered black start resources in the U.S. Despite this, more black start resources will be needed as the occurrence of extreme weather events increasingly impacts grid reliability. As an essential ancillary service, facilities designated as black start resources may receive compensation for this service.
Impediment to Integrating Black Start Capability into Hydropower
While grid outages become more frequent due to extreme weather events and hydro projects are well equipped to restore grid operations, there are nevertheless limitations on hydropower project development. For example, hydropower project licensing is a notoriously complex and lengthy process; licensing or relicensing with the Federal Energy Regulatory Commission (FERC) can typically take five years (and can take much longer). For instance, the relicensing process for the Skagit Hydroelectric Project took years—officially starting in 2018, with an Amended Final License Application filed with FERC on June 4, 2026, beyond the expiration date of the original license. In addition, construction timelines, high upfront costs, climate dependency, environmental impact studies, and community opposition can further lengthen the timeline of hydro project development.
Small Hydropower and Conduit Safe Harbor Exemptions
An alternative approach to FERC licensing requirements is integrating small-scale hydropower projects, which can provide essential power restoration services to the grid. Small-scale hydropower projects not only have shorter development timelines because they capitalize on existing infrastructure such as pre-existing dams or man-made conduits, but they may also qualify for FERC licensing exemptions. FERC currently provides two exemptions from its licensing requirements: (1) exemption for small hydropower projects, which means any project for which capacity will be installed or increased and will have a total installed capacity of 10 megawatts (MW) or less, utilizing water power potential from an existing dam or a natural water feature without the need for a dam or man-made impoundment (18 CFR § 4.103; 18 CFR § 4.30(b)(31)); and (2) exemption for conduits, which are man-made conveyance structures, such as irrigation canals, fitted with electric generating equipment that has an installed capacity of 40 MW or less (18 CFR § 4.90; 18 CFR § 4.30(b)(30)). Such exemptions are granted in perpetuity, unlike standard licenses that expire in 30 to 50 years and require relicensing. While such projects are exempt from the licensing process, they are still subject to federal and state requirement compliance rules. Nevertheless, securing an exemption presents a more streamlined process than pursuing a standard license as the exemption process includes, for example, more flexible timelines, documentation, and consultation processes. (18 CFR § 4.38)
Revisiting Exemption Requirements
In light of the increasing frequency of extreme weather events and the need for black start services, it may be time to reform exemption requirements to allow for greater hydro power development. For example, projects applying for an exemption that will provide black start services could proceed through an accelerated process. The exemption could also be offered to larger projects (i.e., exceeding 10 MW) if the project will provide black start services. If existing exempt projects seek to retrofit to include black start services, the amendment process could also be streamlined and simplified. While there are certainly other obstacles to developing hydro resources that provide black start services, simplifying the exemption process would provide an avenue for greater adoption of black start services, which are particularly important during severe weather events.
For more information, please contact Keith Gordon, Sean Neal, Michael Postar, or Sylwia Dakowicz.
Article By DWGP Summer Associate Joshua Fleming – Howard University School of Law, May 2027
