Hydroelectric Efficiency Improvement Incentives

Federal Agency

Sub-Department

Office of Energy Efficiency & Renewable Energy (EERE)

Purpose

To provide incentives for improvements to hydroelectric facilities that increase their efficiency by at least 3%.

Applicant and/or Project Eligibility Requirements

Eligible applicants include any owners or operators of hydroelectric facilities at existing dams. Eligible projects include capital improvements to the facilities that are directly related to improving the efficiency.

Decarbonization Considerations

Consider improvements that increase the efficiency and resilience of facilities, if possible. Other options may include the potential to co-locate other renewable energy sources at hydroelectric facilities.

Equity Considerations

See the "Equity Design Considerations for Federal Funding" for general considerations and additional sector-based resources: https://cityrenewables.org/resources/equity-design-considerations-for-federal-funding/

Helpful Tips

The Bipartisan Infrastructure Law states that payments shall not exceed 30% of the costs of the applicable capital improvement. A single qualified hydroelectric facility, including pumped storage hydropower, may only receive one incentive payment from this program within a single fiscal year, and that payment shall not exceed $5 million.

Other Notes

Funded projects can be found here: https://www.energy.gov/gdo/hydroelectric-efficiency-improvement-incentive-selections