A 2020 report prepared for the DOE says many states’ energy policies are blocking the inclusion of hydropower in renewable portfolio standards and energy storage programs — even as some states are waging legal battles to expand the use of hydropower in order to help fight climate change. Hydropower, in some form, is an eligible resource in all state RPS programs. However, most states have placed limits on size, in-service date, and/or technology. This trend continued in 2019 as states that expanded their portfolio standards generally retained these restrictions.
This report seeks to highlight how hydropower qualifies for and participates in state RPS programs and state energy storage policies. The report also identifies key takeaways and high-level strategies for maximizing hydropower’s benefits. It begins with an overview of state RPS programs and the most common eligibility criteria states use to determine hydropower participation. Part Two of the report takes a deeper look at hydropower’s role in New England’s RPS markets and how each state’s RPS eligibility criteria affect hydropower’s participation. Lastly, in Part Three, the report explores pumped hydro energy storage and discusses why state policies and programs often overlook the technology. It highlights pumped hydro’s eligibility in state RPS programs and energy storage mandates and targets, offering policy and regulatory approaches that open opportunities for PHES participation.