The Biden-Harris Administration, in line with President Biden's ambitious Investing in America agenda, has revealed an investment of over $38 million to bolster hydropower facilities across the US. This landmark initiative marks the most extensive single investment in the nation's waterpower production to date, with a focus on expanding access to affordable and clean electricity.
Under the provisions of the Bipartisan Infrastructure Law, the US Department of Energy (DOE) has declared that 66 hydro facilities situated throughout the nation will benefit from incentive payments tied to the electricity they generate and sell. These payments are aimed at supporting hydroelectric power generation and distribution from dams and other water infrastructure, particularly in areas with inadequate electrical service. This financial boost represents the DOE's most significant commitment to hydroelectric facilities to date and aligns with the Biden-Harris Administration's commitment to achieving ambitious clean energy objectives.
“Hydropower is one of the nation’s original sources of renewable energy and President Biden’s Investing in America agenda is providing transformative funding to help protect this existing clean energy infrastructure,” said US Secretary of Energy Jennifer M. Granholm. “[The] announcement supports waterpower’s continued growth while maintaining and expanding good-paying jobs and increasing access to affordable, clean power where it is needed most.”
Hydropower presently contributes 28.7% of the US’ renewable electricity generation and constitutes 93% of all utility-scale energy storage capacity. Nevertheless, fewer than 3% of the country's 90,000+ dams are currently equipped to generate power. By adding generation equipment to these sites, the US could potentially integrate up to 12GW of new hydropower capacity into its electric grid, sufficient to power approximately 4.8 million homes.
The Hydroelectric Production Incentives, administered by the DOE's Grid Deployment Office, are part of a comprehensive program funded by a $750 million allocation from the Bipartisan Infrastructure Law. This initiative is designed to sustain the operation of the US hydropower fleet and enhance the reliability and resilience of the electrical grid. It includes other program components, such as the Hydroelectric Efficiency Improvement Incentives and Maintaining & Enhancing Hydroelectricity Incentives. Originally initiated in 2014 and expanded under the Biden-Harris Administration, these incentives have been instrumental in supporting various aspects of the hydropower sector, including operations and maintenance, debt servicing, the exploration of new small hydropower opportunities, and remuneration for the hydropower workforce.
Furthermore, the DOE has released the revamped Hydropower Vision Roadmap, led by the Water Power Technologies Office. This initiative builds upon the Hydropower Vision report of 2016, aiming to make it a living document. The roadmap outlines key activities identified by the hydropower community to achieve a substantial increase in the United States' combined electricity generation and storage capacity, from the current 101GW to nearly 150GW by 2050. This growth is contingent on continued technological advancements, innovative market mechanisms, and an unwavering focus on environmental sustainability.
