-- The US Department of Energy plans to release nearly $430 million to support 293 hydropower projects across 212 facilities, aiming to strengthen grid reliability and infrastructure, DOE said Monday.
The Hydropower and Hydrokinetic Office will restart negotiations to distribute funding under the Maintaining and Enhancing Hydroelectricity Incentives program, DOE said.
The program supports upgrades that improve grid resilience, enhance dam safety, and ensure compliance with state and federal regulations, the department said.
The funding, combined with private capital, could drive total investment in the hydropower fleet to about $2.8 billion, DOE added.
Hydropower accounts for 5.86% of US utility-scale electricity, while pumped storage accounts for 88% of large-scale energy storage, supporting grid stability by allowing operators to quickly adjust output and balance supply and demand.
Many facilities require modernization as aging infrastructure limits performance despite low operating costs, prompting the need for upgrades, the agency said.
Projects will include improvements to turbines, generators, and spillways to extend operational life and support future electricity demand at competitive costs, the department said.
The program enables hydropower facilities to upgrade critical infrastructure without raising costs for ratepayers, addressing growing concerns around grid reliability, security, and affordability, the department said.
The office will begin reviewing applications and plans to start issuing payments in the coming months, the agency said.