The Division of Vitality (DOE) has chosen 293 hydroelectric tasks throughout 33 states that may obtain as much as $430 million in incentive funds for capital enhancements instantly associated to grid resiliency, dam security, and environmental enhancements.
The funding, unveiled on Sept. 5, stems from the DOE Grid Deployment Workplace’s (GDO’s) Sustaining and Enhancing Hydroelectricity Incentives program, for which the 2021-enacted Infrastructure Funding and Jobs Act (IIJA) allocates $553.6 million. This system is one among a number of hydropower incentive measures established by the Vitality Coverage Act of 2005 (EPAct) and is printed in Part 247 of the legislation.
Based on GDO Director Maria Robinson, the $430 million in federal funding, mixed with non-public funding from every facility, will catalyze a complete of $2.8 billion in funding within the nation’s hydroelectricity. “This may make vital capital enhancements to our present hydroelectricity amenities whereas additionally defending present hydroelectricity jobs, contractors, distributors, and largely, building,” she advised reporters on Wednesday.
A Concentrate on Grid Resilience, Dam Security, and Environmental Impression Tasks
The GDO mentioned the 293 tasks will use the funding to refurbish ageing hydroelectric amenities, which have a median age of 79 years. A minimum of 44 tasks obtained the identical degree of funding—$5 million—and 128 tasks obtained greater than $1 million.
Desk: Overview of hydroelectric tasks funded underneath the DOE’s Sustaining and Enhancing Hydroelectricity Incentives program. This desk presents a breakdown of funding allocations, undertaking descriptions, and state distribution as unveiled by the DOE on Sept. 5.
“On common, the federal price share per facility is roughly about $1.5 million, with an total whole capital enchancment undertaking price per facility coming as much as about $9.6 million. So, we’re actually enthusiastic about this funding within the extremely necessary hydroelectric fleet throughout this nation, recognizing the necessary position that it performs in sustaining resilience on our electrical grid,” mentioned Robinson.
A number of tasks, such because the Bartlett’s Ferry Items 1-4 Generator Improve in Alabama and the Claytor Hydroelectric Mission in Virginia, will search to exchange or improve generators and turbines, management techniques, cables, transformers, and penstocks. Many chosen tasks, together with the Mitchell Dam Spillway Gate Alternative in Alabama and the Prairie du Sac Spillway Tainter Gate Rehabilitation in Wisconsin, are devoted to enhancing dam security and strengthening present infrastructure for resiliency towards excessive climate occasions.
Different tasks just like the Pelton-Spherical Butte Dam Fish Entice and Hatchery Rearing Facility in Oregon and the York Haven Nature-Like Fishway in Pennsylvania will deal with environmental and leisure enhancements to boost water situations and broaden the encircling habitat. These tasks will, for instance, set up fish ladders and different tools to facilitate aquatic species’ passage by means of dams and generators, improve wildlife habitats round dams, deploy particular generators to enhance water high quality and oxygen ranges, enhance aquatic habitats downstream, assist species of conservation or cultural significance, and set up or preserve leisure amenities and alternatives close to dams.
“We perceive that these environmental enhancements might be comparatively pricey, and so by using these incentives packages supplied by means of President Biden’s Bipartisan Infrastructure Regulation that may cut back the general price of capital,” Robinson mentioned.
California amenities obtained probably the most incentives, with a mixed $72 million allotted for 39 tasks, adopted by Washington State, which obtained roughly $48.6 million for 12 tasks. Maine ranked third, with about $33.8 million allotted for 21 tasks, whereas Michigan obtained $27.7 million for 19 tasks, and South Carolina was awarded $27.6 million for 11 tasks.
Ageing Hydropower Fleet Is a Trigger for Concern
Whereas the tasks chosen underneath the Sustaining and Enhancing Hydroelectricity Incentives program will not be anticipated so as to add important new capability, the DOE on Thursday mentioned they’re a part of a complete effort to modernize the U.S. hydropower fleet.
Hydropower presently generates 6.2% of whole U.S. energy—and 28.7% of its renewable energy. That share has fallen dramatically over the previous few many years owing to local weather change impacts, unsure water flows, excessive upfront capital prices for brand spanking new improvement, and rising competitors from different renewables, like photo voltaic and wind. One other main problem highlighted by the DOE is that ageing amenities have gotten dearer to take care of.
Hydropower tasks “are usually older, with solely 3% of capability coming on-line since 2000,” Lizzie Bonahoom, analysis affiliate at Aurora Vitality Analysis, not too long ago advised POWER. “The three various kinds of large-scale hydropower throughout the U.S. are standard hydropower [impoundment] at 79 GW, pumped storage at 22 GW, and run of river [hydrokinetic or diversion] at just below 1 GW. Over half [50 GW out of 79 GW] of present standard hydro is positioned within the West, notably Washington, California, and Oregon, whereas, most pumped storage is positioned within the South [10 GW],” she mentioned.
Bonahoom prompt new coverage mechanisms may impact a shift in hydropower’s fortunes. “Completely different income streams and subsidy buildings can be found to new construct hydropower tasks throughout the U.S. All are supported by federal funding tax credit, which underneath IRA provisions may attain as much as a 50% low cost on whole undertaking CAPEX [capital expenditure]. Typical hydropower and run of river are additionally eligible for the manufacturing tax credit score, a variable subsidy based mostly on electrical energy technology. Extra assist is obtainable for hydro within the Bipartisan Infrastructure Regulation, which goals to enhance environmental requirements and operation of present amenities, with out extending assist to new amenities.”
The Newest in a Lengthy Checklist of Latest Hydropower Incentives
For its half, the DOE has acted purposefully to determine vital challenges. In October 2023, it launched a “reimagined” Hydropower Imaginative and prescient Roadmap. Final up to date in 2016, the doc, now revamped as a “residing doc,” means that “with continued know-how developments, revolutionary market mechanisms, and a deal with environmental sustainability, U.S. hydropower may develop from its present 101 GW to just about 150 GW of mixed electrical energy producing and storage capability by 2050.” The roadmap, notably, lays out the particular actions recognized by the hydropower neighborhood to attain these targets by 2050.
Individually, the DOE has taken notable actions on related incentive packages in current months. In October 2023, it unveiled 66 hydro amenities throughout the nation underneath the Hydroelectric Manufacturing Incentive Program (EPAct Part 242) that may obtain greater than $36.7 million for electrical energy generated and bought in the course of the calendar years 2021 and 2022. 9 of these recipients have been eligible underneath insufficient electrical service eligibility standards. Moreover, the GDO issued software steerage for the 2023 incentives on March 14, 2024, with the appliance interval closing on April 23, 2024. These purposes are presently underneath evaluation, the DOE says.
In February 2024, in the meantime, the DOE introduced the choice of 46 hydroelectric tasks throughout 19 states, allocating as much as $71.5 million to those tasks underneath the Hydroelectric Effectivity Enchancment Incentives (EPAct Part 243). Investments underneath that program are slated to assist the continued operation of the U.S. hydropower fleet to “guarantee a extra dependable and resilient electrical grid system,” the DOE defined. Incentives obtained underneath this system shall be designated for capital enhancements that “enhance their facility’s effectivity by a median of 14% with a statutory minimal of three% enchancment per facility,” it famous. Investments embody upgrades to facility generators and turbines, in addition to enhancements to water conveyance buildings to extend effectivity. Chosen amenities are unfold throughout states, together with 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.
The GDO launched its remaining software steerage for the Sustaining and Enhancing Hydroelectricity Incentives program on June 13, 2023. GDO plans to host a public webinar on the picks on Sept. 11, 2024, from 1:00 to 1:30 pm ET. It additionally famous it anticipates releasing a second spherical of funding for this system subsequent calendar yr.
—Sonal Patel is a POWER senior editor (@sonalcpatel, @POWERmagazine).
