GVP inks deal with Redlands Water and Power, securing renewable energy from a local hydroelectric facility for the next three years.
GRAND JUNCTION, Colo. — In a significant move toward clean energy, Grand Valley Power (GVP) announced a new agreement with Redlands Water and Power Company (RWP) to purchase hydropower — marking a strategic investment in local renewable resources at a time when energy utilities across the country are grappling with rising costs and decarbonization mandates.
The three-year deal will see GVP acquire 1.4 megawatts of electricity from RWP’s hydroelectric facility on Power Road, enough energy to power roughly 420 homes in the Grand Valley.
“It’s going to be cheaper, it’s going to be cleaner, and it’s a renewable resource,” said Tom Walch, CEO of Grand Valley Power. “There’s no fuel source that we have to worry about. It’s one of the best ways there is to generate electricity.”
A Local, Low-Impact Energy Source
Unlike traditional energy sources that rely on volatile fossil fuel markets, hydropower is stable and self-sustaining, particularly in a region crisscrossed by historic irrigation canals.
The electricity will be generated at RWP’s small-scale hydropower plant, which channels water from the Redlands Canal, itself fed from the Gunnison River at Redlands Dam. Water passes through a penstock — a large pipe used to create pressure — spinning turbines that convert the flowing water into electricity. The water then reenters the Colorado River downstream.
This method, known as run-of-the-river hydropower, is considered one of the most environmentally responsible forms of generation. It avoids the need for large-scale damming or reservoirs, reduces greenhouse gas emissions, and provides consistent, base-load energy.
Why It Matters Now
The deal comes as part of GVP’s ongoing push to diversify its energy mix and meet Colorado’s statewide goal of 100% clean electricity by 2040.
With inflation and energy market volatility making headlines, GVP’s move is being viewed not only as an environmental step forward but also a hedge against rising wholesale energy prices.
“This partnership makes sense both financially and environmentally,” said one GVP board member. “It’s a local solution to a global challenge.”
In the past, small-scale hydro has often been overlooked in the race toward renewables, with wind and solar dominating policy and funding conversations. But as grid operators look for flexible, reliable energy sources that can complement solar and wind, hydropower is regaining attention — especially in water-rich regions like western Colorado.
Breaking Down the Numbers
While 1.4 megawatts might seem modest compared to massive wind or solar farms, in local terms, it’s a meaningful contribution:
| Metric | Value |
|---|---|
| Energy capacity purchased | 1.4 MW |
| Number of homes powered | ~420 |
| Length of agreement | 3 years |
| Type of power | Run-of-the-river hydropower |
| Generation location | Power Road, Grand Junction |
Moreover, this type of clean energy doesn’t require costly storage, peak-time buybacks, or fossil fuel backup — a growing concern as utilities struggle to integrate intermittent renewables into the grid.
Community-Scale Energy, Locally Controlled
Part of what makes the deal appealing to stakeholders is its community-scale approach. Unlike far-flung energy contracts tied to transmission congestion and weather-dependent production, the GVP-RWP hydropower agreement is hyperlocal, reducing grid strain and providing reliable energy with fewer variables.
The Redlands hydro plant — an often-overlooked facility quietly operating in the background of Grand Junction’s utility ecosystem — is now stepping into the spotlight as an example of low-impact infrastructure that delivers big dividends.
Looking Ahead: Is More Hydropower on the Table?
This latest deal has sparked conversations about how much more the region can — and should — lean on hydro.
While most large river systems in the American West are already tapped for irrigation and power, micro-hydro and small canal projects are increasingly being viewed as underutilized assets. In Colorado, many such projects are already embedded within century-old water rights systems and infrastructure.
“Hydropower is something that people associate with the Hoover Dam,” said an energy consultant who has worked with rural cooperatives across Colorado. “But the reality is, a lot of the best untapped resources are small-scale systems right in people’s backyards.”
That’s something GVP seems to be betting on, too. While no additional deals have been announced, Walch hinted that this may not be the end of the utility’s hydropower strategy.
“We’re always looking for ways to expand our clean energy portfolio in a way that works for our members,” he said. “This is just one step forward — but it’s a good one.”
A Quiet Revolution in the Valley
As western Colorado continues navigating a future defined by water scarcity, energy demands, and economic shifts, partnerships like this may become essential to regional resilience.
They are also symbolic — a demonstration that the path to decarbonization doesn’t always require massive federal grants or megaprojects. Sometimes, it starts with a pipe, a turbine, and a good agreement between neighbors.
