The Hydroelectric Production Incentive Program was authorized by Congress through Section 242 of the Energy Policy Act of 2005. The program, led by the U.S Department of Energy (DOE), provides incentive payments to qualified hydroelectric facilities for electricity generated and sold. Though originally authorized in 2005, Congress first directed funding to the program in 2014. In November 2021, Congress also directed $125 million for the program through the Infrastructure Investment and Jobs Act (IIJA).
To better understand the eligibility requirements for qualified hydroelectric facilities, DOE has issued a guidance document that describes the incentive payment requirements and explains the type of information that owners or authorized operators of qualified hydroelectric facilities must provide in their application.
In October of 2023, DOE announced 66 hydroelectric facilities throughout the country received more than $36.7 million in incentive payments for electricity generated and sold in calendar years 2021 and 2022. Nine of those recipients were eligible under the inadequate electric service eligibility criteria.
Selections
On October 9, 2024, DOE announced $12 million in incentive payments for 39 hydroelectric facilities throughout the country for electricity generated and sold in calendar year 2023. Among those selected under this solicitation, seven projects are new applicants. Eight of the facilities are eligible under the inadequate electric service eligibility criterion. See the full list of selected entities. In 2025, the Grid Deployment Office anticipates announcing a solicitation for electricity generated and sold in calendar year 2024.
Incentives Overview
Frequently Asked Questions
Read the FAQs to learn more.
Previous Announcements
All previous DOE announcements for the Hydroelectric Production Incentive Program can be found below, organized by fiscal year. This program was previously administered by the Water Power Technologies Office (WPTO) within DOE's Office of Energy Efficiency & Renewable Energy (EERE). Visit the WPTO webpage to learn more about other DOE water power related activities.
DOE Administration Announces $12 Million to Support Hydropower Facilities Across the Country
On October 9, 2024, DOE announced $12 million in incentive payments for 39 hydroelectric facilities throughout the country for electricity generated and sold in calendar year 2023.
DOE Announces More than $36.7 Million to Support Hydropower Facilities Across the Country
On October 11, 2023, DOE announced 66 hydro facilities throughout the country will receive more than $36.7 million in incentive payments for electricity generated and sold in calendar years 2021 and 2022.
U.S. Department of Energy Distributes $13.5 Million to Support Record Number of Hydroelectric Facilities
DOE announced the distribution of $13.5 million in incentive payments to 55 hydroelectric facilities through the Hydroelectric Production Incentive Program. This program supports hydropower development by providing funding for electricity generated and sold from dams and other water infrastructure throughout the United States that add or expand hydroelectric power-generating capabilities. The payments mark a record number of recipients, 18 of which were new applicants. This is also the first year DOE expanded eligibility criteria for the program to include facilities located in communities with inadequate electric service. As a result, five newly eligible hydroelectric facilities received incentive payments.
EERE Seeks Public Feedback to Define Inadequate Electric Service Areas
DOE, Office of Energy Efficiency and Renewable Energy (EERE), and the Water Power Technologies Office (WPTO) released a Request for Information (RFI) to seek stakeholder input on factors to consider in relation to defining “an area where there is inadequate electric service”, a phrase which will inform eligibility criteria for WPTO’s Hydroelectric Production Incentive Program. Defining this term will allow the Section 242 Hydroelectric Production Incentive Program to be executed, and increase access to clean, hydroelectric power to U.S. citizens in communities with inadequate electric services. This may include rural, remote, and underserved communities.
Recipients Selected for FY2020 Hydroelectric Production Incentive Program
DOE selected 42 recipients for the $7 million FY2020 round of funding under section 242 of the Energy Policy Act of 2005. Qualified facilities were selected based on the number of kilowatt hours generated by the facility in calendar year 2019. The Hydroelectric Production Incentive Program provides funding for projects adding hydroelectric power generating capabilities to existing dams throughout the United States.
Recipients Selected for FY2019 Hydroelectric Production Incentive Program
DOE selected 48 recipients for the $6.6 million FY2019 round of funding under section 242 of the Energy Policy Act of 2005. Qualified facilities were selected based on the number of kilowatt hours generated by the facility in calendar year 2018. The Hydroelectric Production Incentive Program provides funding for projects adding hydroelectric power generating capabilities to existing dams throughout the United States.
Recipients Selected for FY2018 of Hydroelectric Production Incentive Program
DOE selected 37 recipients for the FY2018 round of funding under section 242 of the Energy Policy Act of 2005. The Hydroelectric Production Incentive Program provides funding for projects adding hydroelectric power generating capabilities to existing dams throughout the United States.
Recipients Selected for FY2017 of Hydroelectric Production Incentive Program
DOE selected 49 recipients for the FY2017 round of funding under section 242 of the Energy Policy Act of 2005. The Hydroelectric Production Incentive Program provides funding for projects adding hydroelectric power generating capabilities to existing dams throughout the United States.
Recipients Selected for FY2016 of Hydroelectric Production Incentive Program
DOE selected 45 recipients for the FY2016 round of funding under section 242 of the Energy Policy Act of 2005. The Hydroelectric Production Incentive Program provides funding for projects adding hydroelectric power generating capabilities to existing dams throughout the United States.
Recipients Selected for FY2015 of Hydroelectric Production Incentive Program
DOE selected 45 recipients for the FY2015 round of funding under section 242 of the Energy Policy Act of 2005. The Hydroelectric Production Incentive Program provides funding for projects adding hydroelectric power generating capabilities to existing dams throughout the United States.
On July 2, 2014, the U.S. Department of Energy (DOE) published and requested comment on draft guidance in the Federal Register for implementing Section 242 of the Energy Policy Act of 2005 (EPAct 2005). See 79 FR 37733 (July 2, 2014). In many instances, there were common themes among the commenters that were consolidated and summarized in the first pdf below.
The Energy Department accepted feedback on the initial draft guidance in July, 2014 and released revised draft guidance for public comment from Oct. 20-Nov. 4, 2014. The second document below contains the response to comments that were received in regards to a revised draft of the EPAct 2005 Section 242 “Hydroelectric Production Incentive Program Application Guidance” that was released on October 20, 2014.
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EPACT Section 242 Comments and DOE Responses