Innovative 200 Kilowatt Small Hydro-Plant Will be First in City, Funded by Low-Cost Loans from Federal Stimulus Funds Awarded to SFPUC

11/12/09 – Mayor Gavin Newsom today hailed San Francisco Public Utilities Commission (SFPUC) plans to construct a small 200 kw renewable hydroelectric project at the University Mound Reservoir, which is currently undergoing seismic retrofit. This innovative hydroelectric plant – the first of its kind in San Francisco – will generate clean, renewable energy from excess water pressure in the City’s water distribution system. This energy, which would otherwise be lost, will meet the strictest requirements for California’s renewable portfolio standards (RPS) and green energy markets. The project will be funded by $2.5 million in Clean Renewable Energy Bonds (CREBS) recently awarded to the SFPUC through a low-interest loan program administered by the Federal Government to encourage renewable energy projects.

“Generating renewable power from the movement of water through our pipelines and reservoirs is another major step for San Francisco’s clean energy leadership,” said Mayor Newsom. “Small hydro-electric projects like this are affordable, neighborhood-friendly and represent simple but creative engineering at its best.”

The new hydroelectric plant will use the power of moving water to generate affordable, renewable energy for the City. Gravity causes water to flow through two pipes into University Mound’s two reservoir basins. Excess water pressure exists in these two flow lines, beyond what is needed to reliably and safely deliver the water into the reservoir basins. This excess energy represents unused energy generation potential that the new hydroelectric plant will harness.

Once the plant begins to operate in approximately 2012, it will produce electricity at 10 cents per kilowatt/hour. However, after financing of the project is paid off, the plant will be capable of producing energy at roughly 3-4 cents per kilowatt/hour, making the project an invaluable investment from an energy-cost perspective.

“We already harness the power of gravity throughout our regional water system to move water and generate renewable power from Hetch Hetchy to San Francisco,” said SFPUC General Manager Ed Harrington. “Now we’ll do that on a smaller scale here in the City as well. We believe that University Mound represents just the first of many opportunities for small hydroelectric projects in San Francisco and the Bay Area.”