The U.S. Department of Energy’s Grid Deployment Office on Oct. 9 announced 39 hydropower facilities throughout the country will receive more than $12 million in incentive payments for electricity generated and sold in calendar year 2023. Public power utilities are included among the recipients of the payments.
Funded by the Bipartisan Infrastructure Law, “with consideration of facilities located in communities with inadequate electric service, the payments provide funding for electricity generated and sold from dams and other water infrastructure that add or expand hydroelectric power generating capabilities,” DOE said. “This funding will help ensure hydroelectric generators continue to provide clean, affordable electricity,” it said.
DOE noted that hydropower currently provides 5.7% of all electricity in the United States and accounts for nearly 27% of renewable electricity generation, as well as 96% of all utility-scale energy storage in the United States.
“However, the fleet is aging with many facilities in need of repair and upgrades. Hydroelectric facility owners and operators use incentive payments under this program to support operations and maintenance activities, stabilize and decrease rates to ratepayers, and explore other small hydropower opportunities,” it said.
In this round of incentives, DOE selected 39 facilities across 16 states. Eight of the selected facilities were eligible under the inadequate electric service criterion, all of which are located in Alaska.
Public power utilities and communities that will receive incentive payments are:
- AMP (Ohio)
- SMUD (California)
- City of Tacoma, Department of Public Utilities, Light Division (Washington State)
- City & Borough of Sitka (Alaska)
- City Of King Cove (Alaska)
The Hydroelectric Production Incentive is part of a comprehensive program funded by a $750 million investment from the Bipartisan Infrastructure Law to support the continued operation of the U.S. hydropower fleet and ensure a more reliable and resilient electric grid system.
Other program offerings are the Hydroelectric Efficiency Improvement Incentive and Maintaining and Enhancing Hydroelectricity Incentive.
The Hydroelectric Production Incentive was enacted under the Energy Policy Act of 2005. In 2021 the Bipartisan Infrastructure Law authorized DOE to provide $125 million in incentive payments for the program, which is available until spent.
DOE anticipates announcing a solicitation in 2025 for electricity generated and sold in calendar year 2024.
