Hydroelectric Production Incentives open for applications to bolster clean energy infrastructure in the US
15 March 2024
The US Department of Energy (DOE) has launched the application window for the Hydroelectric Production Incentive program. This initiative, a cornerstone of the Bipartisan Infrastructure Law championed by the Biden-Harris Administration, aims to revitalize and expand hydroelectric power across the nation.
Addressing the pressing need to modernize and sustain hydroelectric facilities, the program seeks to ensure the continuous provision of clean power while prioritizing dam safety and environmental conservation. The announcement came from Maria Robinson, Director of DOE's Grid Deployment Office, during the National Hydropower Association's Waterpower Week.
“Hydropower is the nation’s oldest source of emissions-free, renewable energy and an integral part of reaching the country’s clean energy and climate goals,” said Robinson. “Today’s announcement recognizes that with aging hydroelectric infrastructure, it’s more important than ever to invest in upgrading, improving, and expanding the nation’s hydro fleet and ensure the hydro industry can continue to provide reliable, clean, and flexible power for generations to come.”
Currently, hydropower accounts for nearly 29% of renewable electricity and 6% of total electricity generation in the US. However, with less than 3% of the country's multi-purpose dams utilized for electricity generation, there exists significant untapped potential. Integrating generation equipment into these sites could yield up to 4.8 gigawatts of new hydropower capacity by 2050.
Administered by DOE's Grid Deployment Office, the Hydroelectric Production Incentives offer payments for energy generated and sold during a calendar year at eligible facilities. These facilities either added generation equipment to existing dams and water infrastructure or were constructed in regions lacking adequate electric service.
Originating in 2014 and expanded under the current administration, the program has facilitated operations, maintenance, exploration of new small hydropower opportunities, and supported the hydropower workforce. In October 2023, DOE announced that 66 hydroelectric facilities across the country would receive over $36.7 million in incentive payments for electricity generated in calendar years 2021 and 2022. Since 2014, more than $88 million in incentives have been distributed.
The Hydroelectric Production Incentives are part of a broader initiative funded by a $750 million allocation from the Bipartisan Infrastructure Law. This comprehensive program aims to bolster the resilience of the U.S. hydropower fleet and enhance the reliability of the electric grid. Other components include the Hydroelectric Efficiency Improvement Incentives and Maintaining & Enhancing Hydroelectricity Incentives.
Applications for the Hydroelectric Production Incentives, covering electricity generated and sold in 2023, must be submitted by April 23, 2024, at 5:00 pm ET through the Clean Energy Infrastructure Funding Opportunity Exchange.
