The Hydroelectric Production Incentives (Section 242 of the Energy Policy Act of 2005) support hydropower development by providing payments for electricity generated and sold from dams and other water infrastructure that add or expand hydroelectric power generating capabilities, or are constructed in an area with inadequate electric service.
Overview
Office:Grid Deployment Office |
New Program:No |
Funding amount:$125,000,000 |
Funding Mechanism:Incentive Payment |
Recipients:Owners or authorized operators of a hydroelectric generation facility |
Period of Availability:Available until expended |
More Information
To qualify for an incentive payment, an eligible applicant must demonstrate that its hydroelectric facility meets all of the following criteria of a qualified hydroelectric facility:
(a) Is located in a State or in U.S. jurisdictional waters.
(b) Has a water-powered turbine or other generating device (including conventional or new and innovative technologies capable of continuous operation).
(c) Is owned by a non-Federal entity and operated by a non-Federal entity. The owner or authorized operator must be applying on behalf of:
(1) A FERC-jurisdictional hydroelectric facility, as the holder of a license or exemption
issued by FERC for the operation of such hydroelectric facility; or
(2) A non-FERC-jurisdictional hydroelectric facility, as the holder of the exclusive rights to the beneficial use of the hydroelectric facility, including legal title.
(d) Began producing hydroelectric energy for sale on or after October 1, 2005, either through added generation capability, or at a facility where operations began prior to October 1, 2005, so long as the facility had been offline because of disrepair or dismantling for at least five consecutive years prior and underwent significant changes.
(e) Has either:
(1) Added generation capability to an existing dam or conduit (as defined above), and began operation between October 1, 2005 and September 30, 2027. Or;
(2) A generating capacity of not more than 20 megawatts, must be a non-Federal entity which received a construction authorization from FERC, if applicable, and is constructed in an area in which there is inadequate electric service. To be considered an area in which there is inadequate electric service, the facility must demonstrate one of the following:
(i) A lack of access to the electric grid, as demonstrated by a lack of connection to a regional or national interconnected transmission system, such as the Eastern Interconnect, the Western Interconnect, or the Texas Interconnect;
(ii) A significantly high frequency of electric outages, as demonstrated by a reported annual common reliability metric, including but not limited to SAIFI without MED, that is in the highest 10% of total annual reported outages;
(iii) A significantly high cost of electricity, as demonstrated by a reported annual average price of retail residential electricity that is in the highest 10% of total annual reported average retail residential electricity price.- Biden-Harris Administration Announces $12 Million to Support Hydropower Facilities Across the Country
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In 2025, the Grid Deployment Office anticipates announcing a solicitation for electricity generated and sold in calendar year 2024.