“American hydropower is a key component of this Administration’s vision for an affordable, reliable energy system,” said Assistant Secretary of Energy (EERE) Audrey Robertson. “These actions will modernize our hydropower fleet, bolster our domestic workforce, and bring us closer to realizing that vision.”

The Hydroelectric Incentive program, now managed by H2O, funds projects that improve grid resiliency, dam safety, and ensure facilities meet current state and federal regulatory requirements. Combined with private investments from each facility, this funding will catalyze a $2.8 billion investment in America’s hydropower fleet.

Hydropowercurrently accounts for 5.86% of total U.S. utility-scale energy generation, while pumped storage hydropower accounts for 88% of all utility-scale energy storage. Hydropower also plays a key role in keeping the grid stable with its ability to quickly ramp up or down to meet energy needs.

This funding will be used to support efforts to renew aging infrastructure and maintain the reliable, affordable power Americans depend on every day. Although hydropower plants have low operating costs, many of these plants were constructed decades ago and need improvements to ensure they continue to generate power for generations to come.

By upgrading turbines, generators, spillways, and other equipment, these hydropower facilities can continue to operate well into the future and will be better equipped to meet local and regional power demands at an affordable price for American consumers.

With grid security, reliability, and affordability becoming top-of-mind issues for many taxpayers, the Hydroelectric Incentive program allows facilities to upgrade their critical infrastructure without passing on costs to ratepayers.

H2O will begin processing the applications of the293 projectsacross 212 hydropower facilities and expects to start distributing payments in the coming months.