Renewable power developer Lucid Energy Inc. and the City of Portland are set to begin construction of an in-pipe hydroelectric system.

The project, which is scheduled for completion in June 2013, will use Lucid's "LucidPipe" generating units, which will be installed in a section of large-diameter, gravity-fed water pipeline. The company says the units will produce at least 10 MW of energy and are being installed as part of Portland's Climate Action Plan.

"It really speaks to Portland's understanding about the importance of the convergence of water and energy in building a sustainable economy, and it will set an example for water agencies all over the world who, like Portland, are looking to reduce energy costs and embrace clean energy and smart water innovation," said Lucid President and Chief Executive Officer Gregg Semler.

Portland's in-pipe hydropower system will be the second major LucidPipe installation, following the installation of a system in Riverside, Calif., earlier this year.

HydroWorld.com has also reported that the company has partnered with the San Antonio Water System to build a demonstration site in Texas.