Small Hydro

USDA funding to support small hydropower construction

USDA funding to support small hydropower construction

A recent announcement by the U.S. Department of Agriculture includes $16.6 million to build a 3 MW hydroelectric plant on the Kentucky River.

USDA announced it is partnering with rural Americans on clean energy projects to lower energy bills; expand access to clean energy; and create jobs for U.S. farmers, ranchers and agricultural producers. Many of the projects are funded by President Biden’s Inflation Reduction Act. USDA also unveiled the Rural Energy Resource Guide to make it easier for rural communities to identify federal funding for clean energy.

“The Biden-Harris Administration and USDA are committed to expanding access to modern clean energy systems and fueling options that strengthen the nation’s energy independence while creating good-paying jobs and saving rural Americans money,” Secretary Tom Vilsack said. “We are excited to partner with hundreds more family farms and small businesses as well as rural electric cooperatives and local clean energy developers to address the impacts of climate change, grow the economy and keep rural communities throughout the country strong and resilient.”

In all, USDA is providing more than $375 million in funding through the Powering Affordable Clean Energy Program (PACE) and the Rural Energy for America Program (REAP). Both of these programs are part of the President’s Justice40 Initiative, which aims to ensure 40% of the overall benefits of certain federal climate, clean energy and other investment areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

Vilsack announced more than $275 million to rural electric cooperative projects moving forward in the awards process through the PACE program to expand access to clean energy for communities in Alaska, Arizona, Kentucky and Nebraska.

Lock 11 Hydro Partners LLC in Estill County, Ky., was selected to receive about $16.6 million to build a new 3 MW run-of-river hydroelectric plant at Lock and Dam 11 on the Kentucky River. This project will use modern run-of-river energy practices that limit the environmental impact of hydropower and ensure affordable, clean energy for rural Kentuckians.

Other projects include a 46 MW battery energy storage system in Alaska, a 45 MW battery energy storage system in Alaska, three battery energy storage systems totaling 35 MW in Arizona, and a 2 MW community solar facility in Nebraska.