Energy Department funds for new hydropower at existing dams

The U.S. Department of Energy has $6.6 million available for the latest round of funding under a program supporting projects adding hydroelectric power generating capabilities to existing dams and impoundments.  Applications for this new round of funding under section 242 of the Energy Policy Act of 2005 are due September 6, 2017.

In 2005, Congress enacted the Energy Policy Act of 2005.  Among its many features, the law established a program to support the expansion of hydropower energy development at existing dams and impoundments through an incentive payment procedure.  Section 242 of EPAct 2005 directs the Secretary of Energy to provide incentive payments to the owner or authorized operator of qualified hydroelectric facilities for electric energy generated and sold from a qualified hydroelectric facility for a 10-year period.

The program's focus is on the addition of generation facilities to existing dams or conduits.  The Energy Department's guidance for its 2017 implementation of the section 242 hydropower incentive program defines "qualified hydroelectric facility" as:

a turbine or other generating device (including conventional or new and innovative technologies capable of continuous operation) owned or solely operated by a non-Federal entity that: (1) began producing hydroelectric energy for sale on or after October 1, 2005; (2) is added to an existing dam completed before August 8, 2005 ( “added” means new hydropower generation where none existed before, or where an existing facility had been offline because of disrepair or dismantling for at least five consecutive years prior to October 1, 2005 before new construction); and (3) the majority of which was developed through new construction incorporating new equipment, refurbished equipment, or both.

According to DOE's notice of the availability of the guidance and application for this round of the incentive program, the agency is accepting applications for full calendar year 2016 production, from qualified hydroelectric facility which began operations starting October 1, 2005, through September 30, 2015.