Hydropower is currently the largest and least expensive source of renewable energy. Large and small-scale hydropower projects are most commonly used by clean-power generators to produce electricity.

Most hydropower projects use a dam and reservoir to retain water from a river. When the stored water is released, it passes through and rotates turbines, which spin generators to produce electricity. Water stored in a reservoir can be accessed quickly for use during times when the demand for electricity is high.

The second use of dammed hydropower projects is for use as power storage facilities. During periods of peak electricity demand, these facilities operate much like a traditional hydropower plant- water released from the upper reservoir passes through turbines, which spins generators to produce electricity. However, during periods of low electricity use, electricity from the grid is used to spin the turbines backward, which causes the turbines to pump water from a river or lower reservoir to an upper reservoir, where the water can be stored until the demand for electricity is high again.

Many large-scale dam projects have been criticized for altering wildlife habitats, impeding fish migration, and affecting water quality and flow patterns. As a result of increased environmental regulation, the US National Hydropower Association forecasts a decline in large-scale hydropower use through 2020. Research and development efforts have succeeded in reducing many of these
environmental impacts through the use of fish ladders (to aid fish migration), fish screens, new turbine designs, and reservoir aeration. Although funding has been limited, current research focuses on the development of a "next generation turbine," which is expected to further increase fish survival rates and improve environmental conditions. Typically, such environmental concerns and the associated permitting requirements can cause extensive delays in project implementation, often creating delays of up to ten years.

Incremental Power Plants

A third type of hydropower project, called "Run of the River," (“ROR”) does not require large impoundment dams (although it may require a small, less obtrusive dam). Instead, a portion of a river's water is diverted into a canal or pipe to spin turbines.

This system is based on smaller turbine units (5MW to 40 MW) and can be used at multiple locations along the river. Smaller power plants, which avoid the construction of dams, are less controversial and less likely to create disruption to towns and villages, create local employment both during the Construction Phases, and during later Operations and Maintenance phases.

Run of the River plants can also be used to provide “targeted” villages, towns, and also industrial facilities and plants, without the use of major power transmission lines, which again the permitting of can cause significant delays.

McGuffy provides multiple smaller units, often implemented over a defined number of years, creating increasing amounts of power without the usual environmental protests that are associated with major Dam projects.

Financing for small hydropower plants is readily available, and such projects attract “Carbon Credit” financing in addition.

McGuffy In Laos

McGuffy recently signed contracts with ECI, the State-owned Electrical Company in Laos, S.E Asia, to build three ROR hydropower plants. The first step in these contracts is a Feasibility Study for each location, including Environmental Impact Studies, which will be followed by Conceptual Engineering. The anticipated timing of the three projects is 3 years, to provide 150 M of power.