Despite widespread, intense drought conditions, hydroelectric power plants in the California Independent System Operator (CAISO), the grid operator for most of the state, provided a significant amount of generation from April 2021 to September 2021, according to the U.S. Energy Information Administration.
Although drought conditions reduced water supply, hydroelectric generation during this period still increased in response to the higher average hourly electricity prices in the late afternoon.
So far in 2021, monthly generation from hydroelectric plants in California has been near the bottom of its 10-year range. To maximize revenue, hydroelectric plants must concentrate their generation into the hours of the day when electricity demand — and, therefore, prices — are highest, typically between 6:00 p.m. and 9:00 p.m.
