Oak Ridge National Laboratory (ORNL) has released the US Hydropower Market Report: 2025 Update, providing the latest comprehensive assessment of the U.S. hydropower and pumped storage hydropower (PSH) sectors. This fifth edition builds on more than a decade of reporting and offers updated data covering 2020–2022, with trend analysis through the end of 2024.
The report continues to serve as a primary reference for developers, operators, and policymakers by tracking project development, generation, relicensing activity, and the domestic supply chain.
Key takeaways at a glance
- Slight net capacity decline: US hydropower saw a net change of –25.5MW in 2024 despite adding 140MW of new capacity, largely due to the John C. Boyle Plant (98.7MW) retirement tied to Klamath River dam removals.
- Storage landscape shift: For the first time, battery storage (27GW) surpassed pumped storage hydropower (22.2GW) as the largest source of US utility-scale energy storage capacity.
- Active development pipeline: 78 non-powered dam, 23 conduit, and 8 new stream-reach projects (1.12GW total) were under development at the end of 2024.
- Strong PSH pipeline: 70 PSH projects represent 60.6GW of planned capacity, with 2.5GW currently in the planning or construction stages.
- Generation trends: US hydropower generation totalled 242TWh in 2024 (down 1% year-on-year), while PSH generation reached a decade high of 23TWh.
- Policy support extended: The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, extends federal tax credits for hydropower and PSH through 2033.
- Trade activity rebound: Hydraulic turbine imports rose 27%, while exports fell 57%, reflecting strong domestic modernization activity and a strong U.S. dollar.
Hydropower and PSH development
At the end of 2024, the US hydropower development pipeline included 109 projects with a combined potential capacity of 1.12GW.
Most proposed additions (72%) are non-powered dam (NPD) conversions. Of the 411MW of near-term capacity additions, 394 MW come from turbine-generator upgrades rather than entirely new installations.
For PSH, 70 projects totalling 60.6GW remain active in the pipeline. Three projects – Swan Lake North (OR), Gordon Butte (MT), and Eagle Mountain (CA) – are fully licensed, while three others have applications under review. Duke Energy’s Bad Creek II expansion in South Carolina could add 1.7GW to national capacity upon completion.
Generation and imports
Total US hydropower generation reached 242 TWh in 2024, down 1% from 2023. The Northwest region remained dominant with 43% of total output (106 TWh).
Canadian hydropower imports continued to decline sharply, falling 31% to 18 TWh in 2024 – around half the long-term average – due to prolonged drought conditions affecting export availability.
PSH facilities recorded near-decade-high output of 23 TWh, with increases in the Midwest (+20.6%), Northeast (+21.2%), and Southeast (+2.2%). The Southwest region saw a 37.5% drop due to extended outages at key plants.
Relicensing and license surrenders
Relicensing activity remains high. As of mid-2025:
- 211 hydropower and PSH projects were in relicensing.
- 33 hydropower projects were in the license surrender process.
In 2024, 14 new licenses (100MW) were issued and 8 surrenders (5.5MW) approved. Economic feasibility and ecological restoration remain the most common reasons for surrendering licenses. Eighteen surrendered projects since 2010 have involved dam removals.
Domestic supply chain and trade
Hydropower component manufacturing spans 38 states, with 147 facilities operated by 90 companies. Washington, Texas, and Illinois lead in concentration of facilities.
The U.S. hydropower equipment market showed mixed trends in 2024:
- Imports: $61 million (+27% from 2023)
- Exports: $21 million (–57% from 2023)
Canada remains the top trade partner for both imports and exports. The import growth is driven by ongoing modernization of aging facilities and domestic capacity expansions.
Policy and regulatory developments
The One Big Beautiful Bill Act (OBBBA) of July 2025 preserves key federal tax incentives – Section 45Y production tax credits and Section 48E investment tax credits – for hydropower and PSH projects through 2033. These credits apply to both new construction and modernization projects meeting the 80/20 upgrade rule.
Additional credit “adders” apply for domestic content and projects located in designated energy communities.
FERC has also approved two new National Environmental Policy Act (NEPA) categorical exclusions for hydropower. These apply to:
- Maintenance, rehabilitation, or replacement of existing facilities involving only minor operational or dimensional changes.
- Minor dam safety construction activities confined to existing infrastructure.
These exclusions are expected to reduce permitting times and compliance costs for routine upgrade and maintenance work.
Context and outlook
The 2025 update confirms that US hydropower continues to serve as a critical clean baseload resource amid shifting generation portfolios. However, competition from emerging storage technologies, coupled with aging infrastructure and evolving relicensing demands, underscores the need for modernization and policy stability.
ORNL’s comprehensive dataset – covering development, generation, and policy trends – offers a quantitative foundation for tracking the sector’s trajectory as it adapts to changing market and environmental conditions.
