Hydroelectric

Four hydropower projects included in $366 million for clean energy

The selectees will undergo a negotiation process with the U.S. Department of Energy.
Four hydropower projects included in $366 million for clean energy

The U.S. Department of Energy (DOE) announced more than $366 million for 17 projects across 20 states and 30 Tribal Nations and communities to accelerate clean energy deployment in rural and remote areas across the country. Of the 17 projects chosen, four are hydropower.

This funding — made possible by the Bipartisan Infrastructure Law — will support community-driven energy projects in rural and remote regions, such as building microgrids for health centers or constructing a new hydroelectric facility on Tribal lands. The announcement underscores the Biden-Harris Administration’s commitment to building an inclusive and equitable clean energy future that creates safer, more resilient communities, enhances Tribal energy sovereignty, strengthens energy security, and delivers new economic opportunities, according to a release.

“President Biden firmly believes that every community should benefit from the nation’s historic transition to a clean energy future, especially those in rural and remote areas,” said U.S. Secretary of Energy Jennifer M. Granholm. “DOE is helping revitalize communities across America — ensuring thriving businesses, reliable access to clean energy, and exciting new economic opportunities, now and for generations to come.”

In line with President Biden’s Justice40 Initiative to advance energy and environmental justice, all 17 projects are located in or adjacent to disadvantaged communities that are disproportionally overburdened by pollution and historically underserved. The projects are part of DOE’s Energy Improvements in Rural or Remote Areas (ERA) program, which is managed by the Office of Clean Energy Demonstrations (OCED). The ERA program leverages DOE’s expertise in resilient energy solutions while recognizing the unique environmental, cultural and economic landscapes of rural and remote communities. At least 12 projects will support Tribal communities.

Each ERA selectee is required to develop and implement a comprehensive Community Benefits Plan (CBP) — which will be informed by early and meaningful community engagements in each region. As part of the department’s commitment to transparency, OCED will hold a series of national and regional virtual briefings to provide information on the selected projects, OCED’s approach to clean energy demonstrations, and opportunities for community engagement.

Before funding is issued, DOE and the selectees will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time. Lead applicants also may change during the award negotiations process. If awarded, OCED will evaluate these projects through a phased approach to project management that includes “go/no-go” decision points between each phase.    

Below are details on the four hydroelectric projects chosen:

Chignik Hydroelectric Dam and Water Source Project in Chignik Bay, Alaska, will receive a federal cost share of $7,270,000. The lead applicant is The Lake and Peninsula Borough. This project involves constructing a new run-of-the-river hydroelectric facility, replacing a 70+ year-old wooden dam that is at risk of failure. It aims to improve energy and water security as the current dam leaks frequently, also jeopardizing the community’s only stable source of clean water. The proposed 2.1 MWh hydroelectric facility aims to replace 100% of the community’s diesel consumption. It also plans to provide excess power for heating, electric vehicle charging, and expansion of local economic activities like tourism and fish processing. The Chignik Bay Tribal Council will own the facility and plans to sell power to local utilities for 80% of the avoided cost of fuel, reducing total electricity rates by an estimated 7%.

Old Harbor Hydroelectric Project in Old Harbor, Alaska, will receive a federal cost share of $10,000,000. The lead applicant is the Alutiiq Tribe of Old Harbor. This project plans to construct a run-of-river hydroelectric facility with a diversion structure, pipeline, powerhouse and electric transmission line. It is anticipated that the project will be capable of generating about 3,470 MWh of energy annually and offset diesel fuel use at the local power plant by 95%. Old Harbor is a remote Alutiiq Tribal village on Kodiak Island, about 50 air miles from the nearest social services in the City of Kodiak. There are nearly 200 residents and 83% are Native Alaskans who rely on a subsistence diet. According to the Denali Commission, 88% of residents live below the federal poverty line, with a median household income of $13,181, and experience disproportionally higher cost energy bills.

Thayer Creek Hydroelectric Project in Angoon, Alaska, will receive a federal cost share of $26,920,000. The lead applicant is Kootznoowoo Inc. (KI). This project encompasses an 850-kW, run-of-river hydroelectric project that has the potential to supply three times the community’s electricity needs, providing additional power for heating, fish processing, electric vehicle charging and tourism. KI is the Alaska Native Village Corporation for the community of Angoon, the ancient home of the Tlingit Xóotsnoowe’di people, with a population of 357. In 1980, as part of the Alaska National Interest Lands Conservation Act (P.L. 96-487), KI and Angoon gave up rights to their ancestral land to establish the Admiralty Island National Monument. As compensation, KI was granted the right to develop Thayer Creek Hydroelectric. However, the initial agreement did not include funding, and the Tlingit people are still entirely reliant on imported diesel, which leads to energy costs that are 4.5 times the national average. This project aims to provide an avenue to address historical oversight and support access to reliable and affordable energy for the Tlingit people.

Yakama Tribal Solar Canal & Hydro Project on the Yakama Indian Reservation, Wash., will receive federal cost share of $32,000,000. The lead applicant is The Confederated Tribes and Bands of the Yakama Nation. This project aims to convert inefficient, open-water irrigation canals into a solar and micro-hydropower irrigation system. This system could conserve up to 20% more water and help energy-burdened residents save up to 15% on their utility bills. Additionally, the project team plans to build solar panels on land the Tribe knows does not risk disturbing cultural resources. It is anticipated that deploying solar technologies will increase the Yakama Nation’s renewable power supply, while improving its energy resilience and reliability. Improvements in irrigation efficiency could also benefit grazing and irrigated agriculture, the area’s key economic drivers.