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Jun 4, 2025  |  
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Elizabeth Allen


NextImg:US Power Grid Facing Trouble as Major Power Source in Danger of Going Offline This Summer

America is facing a huge predicament with its power grid, the real possibility of losing hydro electric power due to the maze of red tape that is government regulations.

The National Hydropower Association (NHA), a top authority in the hyrdopower field, and various energy developers are lobbying for reform to the burdensome regulatory process that new and existing projects face for fear of extinction. These are high stakes; the energy supply for millions of Americans hangs in the balance.

Hydropower, the source of nearly 80,000 megawatts of electricity — 6.2% of the U.S. total utility-scale electricity and 28.7% of renewable electricity according to federal data, has been a linchpin in America’s power grid. However, industry stakeholders are concerned that its regulatory challenges overshadow those of other carbon-free energy sources.

According to NHA President and CEO Malcolm Woolf, the lack of clarity in the licensing process, combined with the time and cost involved, could lead many asset owners to give up their licenses.

Related: Biden’s EPA Targets Power Plant Emissions in Proposal Likely to Bring Electricity Shortages

In an interview with Fox News Digital, he raised fears over the potential ramifications for the national grid. “A lot more instability,” he warned, just as the grid is dealing with the addition of variable wind and solar energy.

According to the Department of Energy, it takes about five years on average for new hydro projects to secure an initial license and close to eight years for existing facilities to renew theirs.

Complicating matters, as many as 11 federal agencies may get involved in a typical hydropower licensing process, including the Federal Energy Regulatory Commission, a body not involved in other renewable energy projects.

Alarmingly, about one-third of the non-federal hydropower fleet will have their licenses expire by 2030, and another fifth by 2035.

Woolf cautions that without licensing and relicensing reforms, facilities could be forced to shut down, driving energy developers to seek investment elsewhere and threatening the power supply of tens of millions.

Companies are making relicensing decisions now because of the lengthy process.

“It’s typically a seven or eight-year process, but very often over a decade-long process,” Woolf said, noting how environmental studies required before submitting a relicensing application could extend the timeline even further.

Woolf warned, based on an industry survey, that over a third of hydropower facility owners are currently contemplating license surrender. “So, this is an issue that needs to be addressed now. It can’t wait for future Congresses.”

A 2021 National Renewable Energy Laboratory report found that about 90% of projects seeking initial licenses abandon their pursuit before issuance, with smaller existing facilities and proposed projects facing the most significant challenges.

Hydropower supporters point out the disparity with renewable alternatives such as solar and wind projects, which undergo a less rigorous permitting process.

Additionally, these alternatives depend heavily on favorable weather conditions, unlike hydropower, which provides a reliable energy source during high demand periods.

“Wind and solar are great, but they’re intermittent. We often use electricity when the sun is not shining or the wind is not blowing,” Erik Steimle, the executive vice president of Florida-based energy developer Rye Development, said in an interview. “So, we need something that’s reliable. And hydropower certainly is that — it’s a 24/7 source of carbon-free electricity.”

Rye, one of the leading hydro developers in the U.S., specializes in developing hydroelectric facilities on existing dam infrastructure and closed-loop pump storage technology.

Steimle highlighted hydropower’s critical role, especially for energy systems integrating wind and solar. He attributed the lack of new hydro projects to the lengthy permitting timelines compared to other types of new energy projects.

Despite the growth of wind and solar energy, hydropower, once generating nearly 100% of the nation’s renewable power, retains significant importance. Areas with extensive hydropower infrastructure continue to enjoy some of the country’s cheapest electricity.

One notable hydropower variant, pumped storage, is seen as a viable solution. Peggy Beltrone, public policy adviser at Idaho-based clean energy developer Cat Creek Energy, highlighted the benefits of pumped storage hydropower and criticized the current regulatory process.

Cat Creek is developing a pumped storage project in southern Idaho projected to offer a capacity of 720 megawatts, though it won’t be operational until 2028.

Beltrone emphasized that, as fossil fuel plants retire, the stability pumped storage brings to the grid will be crucial.

“But there are more federal agencies that regulate hydropower licensing than nuclear power licensing,” she noted, adding that she supports attempts to streamline the process.

This clarion call from hydropower developers coincides with the ongoing energy permitting reform talks in Capitol Hill. Lawmakers from both sides of the aisle agree that streamlining the permitting process is necessary for the efficient development of various energy sources. Senators from both parties have recently presented differing proposals, and negotiations for a compromise are underway.

The White House has also expressed support for streamlining hydropower, with White House Clean Energy Czar John Podesta stressing the necessity to eliminate the cost and delays miring the licensing process for hydropower projects.

Related: Sen. Manchin Vows to Block All Biden EPA Nominees Over Regulation Targeting Power Plant Emissions

In a significant development, on May 10, Senators Steve Daines (R-Mont.) and Maria Cantwell (D-Wash.) introduced bipartisan legislation to expedite hydro licensing. The bill, endorsed by NHA, Podesta, and other stakeholders, is expected to be included in the final energy permitting package.

“Hydro is an affordable, reliable, and clean energy source, and as energy prices remain high, we need to encourage and support new hydro projects by streamlining the permitting process to take advantage of this rich resource,” Senator Daines told Fox News Digital.

“A balanced energy portfolio that includes hydropower is good for our communities, good for our pocketbooks and good for American energy jobs,” he continued.

It remains to be seen how the Biden administration truly views the importance of hyropower in relation to their woke climate agenda. Let’s hope they actually make the necessary regulatory fixes or America will lose a major energy source with no foreseeable means to replace it, leaving millions without power.