Biden-Harris Administration allocates record funds for hydroelectric projects across 19 states
5 February 2024
The Biden-Harris administration has unveiled its largest single investment in waterpower production in the US, allocating nearly $72 million to bolster hydropower facilities across the Nation as part of the Investing in America Agenda.
The US Department of Energy (DOE) revealed the selection of 46 hydroelectric projects spanning 19 states, set to receive up to $71.5 million in incentive payments. These funds, administered by the Grid Deployment Office and backed by the Bipartisan Infrastructure Law, mark the DOE’s most substantial investment in hydropower facilities to date.
U.S. Secretary of Energy Jennifer M. Granholm emphasized the pivotal role of hydropower in delivering affordable and reliable electricity nationwide. Granholm stated: “Hydropower is the nation’s prototype of renewable power, playing an important role in deploying affordable and reliable electricity across the country. Thanks to the President’s Investing in America agenda, we are maintaining and expanding our hydropower fleets, helping reduce costs of operation and ensuring American workers continue to drive the nation’s clean energy transition.”
With an eye on the Biden-Harris Administration’s clean energy objectives, the incentive program witnessed robust industry interest, with applications seeking a total of $192 million in federal support. The chosen enhancements are expected to generate a combined investment of $468 million, contributing to the continued operation and longevity of hydroelectric assets – with an average selectee facility age of 75 years.
Currently constituting 27% of renewable electricity generation in the US, hydropower also claims 93% of all utility-scale energy storage capacity. Beyond electric generation, the US hydroelectric fleet and associated reservoirs play crucial roles in water supply, flood control, and recreation. Improving water use efficiency for electricity generation is anticipated to enhance the fleets’ ability to manage the nation’s waters more effectively.
Investments under the Hydroelectric Efficiency Improvement Incentives will bolster the U.S. hydropower fleet’s continued operation and ensure a more reliable and resilient electric grid system. Facility owners or operators receiving the incentives will implement capital improvements to enhance efficiency by an average of 14%, with a statutory minimum of 3% per facility. These improvements include upgrades to facility turbines and generators, as well as enhancements to water conveyance structures.
The selected projects span across California, Colorado, Connecticut, Georgia, Idaho, Maine, Massachusetts, New Hampshire, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia, Washington, and West Virginia.
A public webinar, scheduled for February 7, 2024, at 1:00 p.m. ET, will offer an overview of the Hydroelectric Efficiency Improvement Incentives selections and key trends identified. Interested participants can register for the webinar here. A recording of the event will be available at a later date.
The Hydroelectric Efficiency Improvement Incentives form one of three incentive offerings funded by the Bipartisan Infrastructure Law. These initiatives aim to maintain and enhance existing hydroelectric facilities, ensuring the continued provision of clean, renewable electricity while improving dam safety and reducing environmental impacts. Other program offerings include Hydroelectric Production Incentives, provided to qualified hydroelectric facilities for electricity generated and sold, and Maintaining and Enhancing Hydroelectricity Incentives, provided for capital improvements directly related to grid resiliency, dam safety, and environmental improvements.
Cabin Creek Hydroelectric project. The project was one of the 46 selected to receive funding under the Hydroelectric Efficiency Improvement Incentives. Image licensed under the Creative Commons CC0 1.0 Universal Public Domain Dedication. Author: Thomson200
