Biden Administration Invests $430 Million to Enhance U.S. Hydropower Infrastructure

The U.S. Energy Department on Sept. 5 announced the selection of 293 hydroelectric enhancement projects across 33 states that will receive up to $430 million in incentive payments to update hydropower facilities.

These projects have been managed by the Grid Deployment Office and financed by the 2021 Infrastructure Investment and Jobs Act, or IIJA. The program, titled Maintaining and Enhancing Hydroelectricity Incentive, will improve dam safety, enhance grid resilience and safeguard 6,000 existing employment opportunities in the U.S. hydropower sector.

As it stands, hydropower accounts for approximately 27 percent of U.S. renewable electricity generation and 93 percent of all utility scale energy storage. U.S. hydropower production is expected to increase by six percent during 2024 compared to last year, according to an April 2024 report from the U.S. Energy Information Administration. Hydropower generation declined to a 22 year low during 2023, due to less water supply. This year, hydroelectricity is projected to account for 250 billion kilowatthours of electricity production in the power sector, with increases in generation across most parts of the U.S., particularly in the Southeast, Northwest and the Rockies.

The IIJA-supported program assists capital improvements directly related to three main areas of hydropower: enhancing grid resilience, upgrading dam safety, and facilitating environmental and recreational improvements to hydropower facilities. The law allocates $553.6 million to maintain and enhance existing hydroelectric facilities. The second round of incentives are expected to be released in the next calendar year.

The 293 hydroelectric enhancement projects will strengthen grid resilience at hydropower dams by enhancing control systems, upgrading cables and transformers, replacing or enhancing generators and turbines and enhancing penstocks, which transport water to the turbines. The projects will enhance dam safety by improving dam infrastructure and strengthening current infrastructure against extreme weather events. Moreover, the projects will enable environmental and recreational enhancements to hydropower infrastructure that will advance water conditions and develop nearby habitation and passage for fish and other species and enhance recreational services near dams.

Grid Deployment Office will host a public webinar on the selections on Sept. 11, 2024 to provide interested parties an opportunity to receive an overview of the selections and key trends identified by the team.