Hydropower currently accounts for nearly 27% of renewable electricity generation in the U.S., as well as 93% of all utility-scale energy storage, according to the U.S. Department of Energy (DOE). However, the fleet is aging, and many facilities are in need of repair and upgrades.
In response, the DOE has selected 293 hydroelectric improvement projects across 33 states that will receive up to $430 million in incentive payments. The funds will be used to to upgrade hydropower facilities that have been in operation for an average of 79 years. Administered by the Grid Deployment Office (GDO) and funded by the Bipartisan Infrastructure Law, the Maintaining and Enhancing Hydroelectricity Incentives program will enhance dam safety, improve grid resilience at 215 facilities, and protect 6,000 existing jobs at hydropower facilities as well as contractors and vendors.
“As our earliest form of renewable energy generation, hydropower has reliably kept America running for almost 150 years—and the Biden-Harris Administration is ensuring these long-standing facilities can continue the steady flow of clean power,” commented U.S. Secretary of Energy Jennifer M. Granholm. “Today’s funding will expand and modernize our hydropower fleet, while protecting thousands of American jobs.”
DOE Invests In Hydroelectric Facilities Across U.S.
The incentives support capital improvements directly related to three main areas of hydropower: improving grid resilience, improving dam safety, and enabling environmental and recreational improvements to hydropower facilities. Within DOE’s portfolio and funded by the Bipartisan Infrastructure Law, the Maintaining and Enhancing Hydroelectricity Incentives are complemented by two additional hydroelectric incentives:
- Hydroelectric Production Incentives provide incentive payments to qualified hydroelectric facilities for electricity generated and sold.
- Hydroelectric Efficiency Improvement Incentives provide payments to increase power generation from the nation’s existing hydropower fleet.
The 293 projects will:
- Strengthen grid resilience at hydropower dams.
- Improve dam safety by upgrading aging dam infrastructure and strengthening existing infrastructure against extreme weather events.
- Facilitate environmental and recreational improvements to hydropower infrastructure that will improve water conditions and expand surrounding habitat and passage for fish and other species, and upgrade recreational facilities near dams.
In 2025, the DOE plans to release a second round for Maintaining and Enhancing Hydroelectric Incentives.
