Washington, D.C. — A second round of funding for the Section 242 Hydroelectric Incentive Program is now available from the Energy Department's Water Power Program. The incentive is available to developers who added hydroelectric power generating capabilities to existing non-powered dams throughout the United States. Equipping local, non-powered dams with these generating capabilities can potentially provide up to 12 gigawatts of cost-competitive, renewable energy at a lower cost than creating new powered dam structures.

Under the Section 242 Hydroelectric Production Incentive program, on December 16, 2015, the Energy Department began accepting applications from owners and operators that produced hydroelectric power in 2014 from new equipment added to an existing dam or conduit since 2005. Applications for this new round of Section 242 funding are due by February 1, 2016.  To learn how to apply or for specific guidance, visit www.energy.gov/eere/water/downloads/2014-electrical-production-epact-2005-section-242-hydroelectric-incentive.

Making use of existing structures, developers introduce new electricity onto the grid at a reduced cost, with minimal impact to the surrounding environment. In January 2015, the Energy Department released the first solicitation for the Section 242 Hydroelectric Production Incentive for developers that produced hydroelectric power in 2013, where new generating equipment had been added since 2005. In total, $3.6 million was awarded to 36 qualified owners and operators based upon the amount of electricity they produced in 2013.