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One of the oldest and largest sources of renewable energy, hydropower uses the natural flow of moving water to generate electricity. According to the U.S. Department of Energy (DOE), hydropower currently accounts for about 27% of total U.S. utility-scale (electricity generated on a large scale) renewable electricity generation and 5.86% of total U.S. utility-scale electricity generation. Pumped storage hydropower (PSH) provides 88% of all utility-scale energy storage in the U.S.
Hydropower technologies generate power by leveraging elevation differences, usually via a dam or diversion structure that interrupts the flow of water in a river. This affordable energy source harnesses power from moving water.
The Hoover Dam is one of the most recognizable hydropower plants in the world, but hydropower facilities come in all shapes and sizes. Some are very large, but others are small enough to leverage water flows in municipal water facilities or irrigation ditches. Others may be “damless,” with diversions or run-of-river facilities that channel part of a stream through a powerhouse before the water rejoins the main river.
Hydropower also helps stabilize the nation’s power grid. A National Laboratory of the Rockies study on hydropower flexibility found that the firm capacity—the guaranteed minimum amount of electric power a facility will be able to deliver—of U.S. hydropower facilities is estimated to be over 24 GW. That’s enough to power between 16 and 24 million homes.
“Whatever the method, hydropower is easy to obtain and widely used,” the DOE says. “States like Washington rely heavily on hydropower, sourcing about 60% of its electricity from hydropower facilities.”
Five Core Areas of Concern
Like much of the nation’s infrastructure right now, the U.S. hydropower supply chain is in need of an overhaul. A new DOE report highlights five core gaps in the domestic hydropower supply chain, which it views as an “important component of the nation’s goal of achieving a 100% clean electricity sector by 2035.”
The new Hydropower Supply Chain Gap Analysis considers various sectors of the hydropower supply chain, from mining and extraction to installation and construction. Drawing on feedback from hydropower industry stakeholders gathered by DOE’s Water Power Technologies Office (WPTO), researchers identified five major gaps:
• Unpredictable and variable demand signals for materials and components. In general, hydropower systems have exceptionally long lives (e.g., 30–50 years), so replacements and refurbishment schedules have cycles that are years or decades.
- Severely limited or nonexistent domestic suppliers for materials and components. Only one or two (or some cases, zero) domestic suppliers exist for materials and components.
- Federal contracting procedures and domestic content laws. According to the DOE, several procurement regulations and/or general practices exist that inhibit the development of the domestic hydropower supply chain.
- Foreign competition, foreign subsidies and ineffective trade policies. Discussions with companies in the hydropower industry highlighted inequitable competition from foreign companies and ineffective trade policies as issues in the hydropower supply chain.
- Skilled worker shortage. Hydropower manufacturing and upstream support industries suffer from a significant lack of expertise in the workforce. As these industries have been offshored over the last 40 years, skilled workers have retired or moved to other industries.
Key Recommendations
The DOE’s deep-dive assessment examined the hydropower supply chain to identify potential bottlenecks, challenges and opportunities, particularly if the U.S. demand for hydropower components grows significantly to meet energy production targets. The agency also outlined several recommendations, including a review of federal procurement processes to better support domestic suppliers while still meeting project needs.
Stronger databases and planning tools that give the industry a better view of available suppliers, installed equipment and future demand are also in order, according to the DOE. Other recommendations include working with adjacent industries that use the same materials and components—including wind, grid modernization, shipbuilding and defense—to create steadier demand. The report also says workforce development must continue through academic programs, internships, apprenticeships, job fairs, competitions and veteran-focused pathways.
