The US Department of Energy (DoE) has announced plans to resume negotiations to distribute nearly $430m in funding to hydropower facilities across the US as part of efforts to modernise the country’s aging fleet.

The funding, administered by the DoE’s Hydropower and Hydrokinetic Office (H2O), will support 293 projects at 212 facilities under the Maintaining and Enhancing Hydroelectricity Incentives programme. The selected projects span 33 states and are aimed at improving infrastructure, safety and regulatory compliance.

According to the DoE, the federal funding, combined with private sector contributions, will help catalyse an estimated $2.8bn in total investment in the hydropower sector.

“American hydropower is a key component of this Administration’s vision for an affordable, reliable energy system,” said Audrey Robertson, Assistant Secretary for Energy Efficiency and Renewable Energy. She added that the programme will support fleet modernisation and workforce development.

Hydropower currently provides 5.86% of total US utility-scale electricity generation. Pumped storage hydropower accounts for around 88% of the country’s utility-scale energy storage capacity, playing a significant role in grid balancing due to its rapid response capabilities.

The DoE said the funding will prioritise upgrades to turbines, generators, spillways and other critical components at facilities, many of which were built decades ago. The aim is to extend operational lifespans while maintaining low-cost, reliable power generation.

The programme also targets improvements in grid resilience and dam safety, while ensuring facilities meet current state and federal regulatory standards.

Officials noted that the funding structure is designed to allow infrastructure upgrades without increasing costs for electricity consumers.

H2O is expected to begin processing applications for the selected projects shortly, with payments set to be distributed in the coming months.