U.S. Energy Department Seeks Input to Implement Infrastructure Law’s $630 Million Funding to Modernize Hydropower Facilities

The U.S. Energy Department on June 30 circulated a request for information seeking public input on the implementation of a $630 million hydropower incentive program pursuant to the 2021 Infrastructure Investment and Jobs Act.  This information would assist the department in studying the structure of hydropower incentive programs, selection criteria, timing and distribution of funds, and definitions of capital improvements for the enhancement of hydroelectricity infrastructure. This funding will support grants aimed at strengthening the power grid and providing emissions-free, reliable energy during the energy transition phase.

The infrastructure law provides investments in the “Hydroelectric Efficiency Improvement Incentives” and “Maintaining and Enhancing Hydroelectricity Incentives” programs to upgrade the hydropower facilities in the country, in order to improve efficiency.

Investing in Hydroelectricity Infrastructure

The investment in hydropower facilities will ensure the infrastructure is more durable and energy-efficient, which will support Biden’s target of attaining carbon neutrality by 2050. Currently, hydroelectricity accounts for 6 percent of total electricity generation in the U.S. and 32 percent of renewable electricity generation. Although hydro energy is a reliable source of energy, many hydropower facilities need renovations in order to improve efficiency and reliability.

U.S. Energy Department Incentive Programs

The aforementioned incentive programs are both managed by the department’s Grid Deployment Office. The first program offers $553.6 million in incentive payments to boost existing hydropower facilities in the areas of grid resiliency, dam safety, and environmental improvements. The latter offers $75 million in incentive payments to eligible operators of existing hydroelectric facilities. This is proposed to boost capital improvements that can enhance efficiency by at least 3 percent.

A request for information is sought from all the stakeholders in hydroelectricity. Comments are due by Sept. 6, 2022. The incentive programs are part of a $62 billion energy investment authorized by the infrastructure law for programs implemented through the agency.