DOE Commits More Funding for Hydropower, Smart Manufacturing, Wind

The U.S. Department of Energy (DOE) recently announced two new funding programs targeting hydropower expansion and smart manufacturing projects. It released a new strategy to lower costs for offshore wind development.

 

Commissioned in 2016 off the coast of Rhode Island, the Block Island Wind Farm marked the U.S.’s first-ever commercial offshore wind farm. Image used courtesy of the DOE/Gary Norton

 

The DOE recently reaffirmed its partnership with Canada to boost nuclear power deployment. And its latest quarterly progress update outlines the agency’s most recent cleantech-related activities. 

Here’s our briefing on what the announcements entail. 

 

Hydropower Production, Efficiency Improvements

The DOE is accepting applications for two hydroelectric solicitations funded by the Bipartisan Infrastructure Law (BIL), passed in 2021. While hydropower accounts for 6% of America’s electricity mix today, less than 3% of the country’s 90,000 dams actually produce power. The DOE’s press release says that up to 12 gigawatts (GW) of new capacity could be added through new-generation equipment. However, that estimate is based on 2012 data. The extent of the shortfall in more recent years is unclear. 

 

This map shows the distribution and characteristics of operational hydropower facilities in the U.S. as of 2022. Image used courtesy of Oak Ridge National Laboratory

 

DOE’s Hydroelectric Production Incentives program will extend $125 million in payments for hydroelectricity sold in 2021 and 2022. Initially approved by Congress in 2005 but not funded until 2014, the program distributed more than $51 million over the last nine years. Around a quarter of that total came in 2022, with $13.5 million across 55 hydroelectric facilities. 

According to DOE guidance, the program will support existing dams and conduits completed before November 2021 or have up to 20 megawatts (MW) of capacity and are built in areas with inadequate electric service. Eligible facilities will receive no more than $1 million each year. 

It’s worth noting that these retroactive payments aren’t just for facilities that expanded their capacity in the 2021-2022 window. They also apply to U.S. hydropower plants that began producing hydroelectric power through added generation or incorporating new equipment after October 2005. 

Nevertheless, the DOE launched a separate Hydroelectric Efficiency Improvement Incentives program distributing $72 million in BIL-funded payments to spur technical improvements at existing dams. The program is open to owners/operators of existing dams and covers upgrades to improve efficiency by at least 3%. DOE guidance says the payments—with a limitation of up to $5 million—cannot exceed 30% of the applicable capital costs. And each facility can only receive one incentive payment per year. 

Hydroelectric Production Incentives applications are open through May 8. The Hydroelectric Efficiency Improvement Incentives application window closes on June 20. 

 

Smart Manufacturing

DOE will award states $50 million for smart manufacturing and high-performance computing systems among small- and medium-sized manufacturers. Most manufacturers in this demographic don’t employ smart or high-performance technologies due to high costs and gaps in staffing and training resources. 

Up to $2 million will be available per state for up to three years. However, states are required to match awards by at least 30%. 

Some examples of how states can use the funding include: promoting the benefits of smart manufacturing technologies for small- and medium-sized manufacturers, providing financial assistance for access/implementation, and partnering with unions on training and other activities to boost the talent pool. The program also connects states and territories to public and private technical assistance services, including DOE’s National Laboratories, the National Institute of Standards and Technology, Manufacturing USA’s national network of institutes, and universities. 

Applications are due on May 30. 

 

Offshore Wind Energy Strategy

DOE’s newly released “Offshore Wind Energy Strategy” outlines its plans to lower costs and spur more offshore wind deployment, supporting President Biden’s goal of 30 GW of offshore wind by 2030 and 110 GW by 2050. Meeting the first short-term goal would power 10 million homes and unlock $12 billion in direct private investment annually.

According to DOE, only 42 MW of offshore wind capacity was operational in the U.S. in 2022. Still, more than 40 GW is in the development pipeline, and another 932 MW is under construction. 

Cost is among the greatest barriers to future offshore wind development. DOE plans to help reduce costs from $73 to $51 per megawatt-hour (MWh) by the end of the decade while also expanding the supply chain for fixed-bottom offshore installations. 

For floating offshore wind projects, DOE aims to cut costs by over 70% to $45 per MWh by 2035. This would be significant since more than 65% of America’s total 4.2 GW of offshore wind resource potential lies in waters exceeding 197 feet, requiring floating platforms. 

 

Most of the U.S.’s offshore wind potential is located in waters deeper than 197 feet, requiring floating platforms. Image used courtesy of National Renewable Energy Laboratory

 

The strategy also aims to support large-scale offshore transmission systems and expand offshore wind co-generation technologies. 

 

Federal Clean Energy Activities

In its spring seasonal update, DOE outlined its cleantech activities in the first quarter of 2023. 

The year began with the agency announcing $42 million in funding for 12 projects developing longer-lasting, faster, and more efficient batteries. The DOE and U.S. Department of Transportation also recently unveiled a $2.5 billion program for EV charging and alternative fuel infrastructure, targeting 500,000 EV charging stations by 2030—up from today’s 130,000 public stations. 

DOE also oversaw over $90 billion in battery manufacturing projects—mostly private-sector investments. That’s enough power for 10 million EVs annually and more than 150 new or expanded minerals/material processing and production facilities. 

 

A map of recently announced battery manufacturing, processing, and recycling projects. Image used courtesy of DOE

 

It also announced $5 billion in investments across 50 solar manufacturing plants—enough to power 8 million homes annually. Most of those projects are related to solar panels, but some include panel parts and other hardware. 

In its quarterly announcement, DOE also touted its ongoing plans to repair and modernize Puerto Rico’s renewable power grid. DOE’s Grid Deployment Office recently released a Request for Information seeking feedback on ways to allocate $1 billion for residential rooftop solar installations, improving grid resilience, and workforce training in Puerto Rico. 

 

Nuclear Partnership with Canada

Finally, DOE and the Department of Natural Resources of Canada issued a joint statement in late March reaffirming their partnership on nuclear power amid the ongoing war in Ukraine and climate change impacts. The statement mentioned nuclear’s low-carbon benefits, affordability, and new opportunities emerging from advanced technologies such as small modular reactors.

The two countries said they would work with nuclear markets to accelerate advanced nuclear power deployment and refine safety and radioactive waste management measures. They’ll also team up on securing the supply of low enriched uranium fuel for existing reactors and high assay low enriched uranium fuel for advanced reactors.