US DOE Provides $72MM to Boost Efficiency of Hydropower Facilities

Dozens of hydroelectric projects across 19 states in the US have been selected for $71.5 million in incentive payments from the Department of Energy (DOE) to improve generation efficiency.

“The owners or operators of hydroelectric facilities, including pumped storage hydropower, receiving the efficiency incentives announced today will make capital improvements that improve their facility’s efficiency by an average of 14 percent with a statutory minimum of 3 percent improvement per facility”, the DOE said in a recent news release.

The 46 selected projects may choose to upgrade turbines and generators, as well as improve water conveyance structures, the DOE said. The facilities are spread in California, Colorado, Connecticut, Georgia, Idaho, Maine, Massachusetts, New Hampshire, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia, Washington and West Virginia.

“Administered by the Grid Deployment Office and funded by the Bipartisan Infrastructure Law, the Hydroelectric Efficiency Improvement Incentive payments represent DOE’s largest investment in hydroelectric facilities to date”, the department said.

Hydropower accounts for 27 percent of the country’s renewable power generation, as well as 93 percent of utility-scale energy storage capacity, the DOE announcement noted.

“In addition to renewable electric generation, the U.S. hydroelectric fleet and their associated reservoirs play an important role with respect to water supply, flood control, and recreation”, the DOE added.

Applications for this incentive program, one of three incentive schemes funded by the 2021 Bipartisan Infrastructure Law, represented $192 million in request for support, the DOE noted.

“Using all available funding directed to the incentive, the selected improvements are anticipated to generate $468 million in combined federal and private investment”, it said. “With an average selectee facility age of 75 years, these upgrades will contribute to the continued operation and longevity of hydroelectric assets”.

Energy Secretary Jennifer Granholm said in a statement, “Hydropower is the nation’s prototype of renewable power playing an important role in deploying affordable and reliable electricity across the country”.

“Thanks to the President’s Investing in America agenda we are maintaining and expanding our hydropower fleets, helping reduce costs of operation and ensuring American workers continue to drive the nation’s clean energy transition”, the Democrat added referring to President Joe Biden’s umbrella campaign to boost the US’ infrastructure and manufacturing capacity to curb import reliance.

Last September the DOE announced $13 million in funding offer for research and development projects that aim to enable existing non-generation dams to generate electricity and accelerate the deployment of pumped storage hydropower (PSH).

"The funding supports organizations to accelerate hydropower research and development for non-powered dam and PSH technologies to make them more affordable, environmentally responsible, and deployable", the DOE said in a press statement at the time.

Of over 90,000 dams in the US less than three percent produce power, the announcement noted. "These dams serve a range of purposes from flood control and irrigation to water storage and recreation and represent the potential to add thousands of megawatts of clean energy to the grid", the department said.

Meanwhile PSH, which currently accounts for 93 percent of the country's utility-scale energy storage, "will be a key tool to balance a grid with an increasing amount of variable resources such as wind and solar", the September announcement said.

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