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Report on the State of U.S. Hydropower and its Alignment with Sustainable Development Goals

Introduction: Hydropower at a Crossroads

The United States hydropower industry, the nation’s largest and most established source of renewable energy, faces a critical juncture. Its role in achieving key Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action), is challenged by aging infrastructure, complex regulatory hurdles, and increasing economic competition from other renewable sources. This report analyzes the current status, challenges, and future prospects of U.S. hydropower within the framework of global sustainability objectives.

Current Status and Contribution to SDG 7 (Affordable and Clean Energy)

Energy Production and Capacity

Hydropower remains a cornerstone of the U.S. clean energy portfolio, directly contributing to the targets of SDG 7. However, its future contribution is contingent on significant modernization and investment.

• In 2024, hydropower accounted for 27% of total utility-scale renewable electricity and 5.86% of all utility-scale electricity generation in the U.S.
• The U.S. Energy Information Administration (EIA) projects a 7.5% increase in hydropower generation in 2025, reaching approximately 259.1 billion kilowatt-hours (BkWh).
• Despite the existence of over 90,000 dams, fewer than 3% are utilized for power generation, indicating a significant untapped potential for expanding clean energy capacity without new dam construction.

Challenges to Hydropower’s Role in Sustainable Development

Infrastructure Decay and SDG 9 (Industry, Innovation, and Infrastructure)

The aging nature of U.S. hydropower facilities presents a direct challenge to SDG 9, which calls for resilient and sustainable infrastructure. A majority of dams have surpassed their intended operational lifespan, necessitating urgent upgrades.

1. The average age of U.S. dams is 65 years.
2. Within the next decade, nearly 450 hydroelectric plants, representing over 16 GW of clean energy capacity, require relicensing.
3. The relicensing process mandates substantial investment to upgrade turbines, hardware, and structural integrity to meet modern safety and operational standards.

Economic and Regulatory Hurdles

The economic viability of hydropower is under pressure, while bureaucratic complexities hinder timely modernization.

• Market Competition: The declining costs of natural gas, solar, and wind power have eroded hydropower’s traditional cost-competitiveness.
• Regulatory Complexity: The absence of a single federal agency with full authority over hydropower creates a convoluted and lengthy relicensing process, averaging eight years. This bureaucratic inefficiency impedes progress toward clean energy goals.

Environmental Modernization and SDGs 15 & 6

To secure new operating licenses, facilities must be upgraded to meet contemporary environmental standards, aligning with SDG 15 (Life on Land) and SDG 6 (Clean Water and Sanitation).

• Many dams were constructed without consideration for their ecological impact.
• Required upgrades include enabling unobstructed passage for fish and other wildlife, a critical component for protecting aquatic ecosystems.
• The high cost of these environmental retrofits is a primary barrier for many operators, forcing some to consider decommissioning, which would result in a loss of clean energy generation capacity.

Policy and Investment Landscape for Revitalization

Government Initiatives and Financial Incentives

Federal policies are being adapted to encourage investment in the hydropower sector, recognizing its importance for national energy and climate objectives.

• Bipartisan Infrastructure Law: Allocates $753.6 million to the Department of Energy for hydropower projects, supporting the maintenance and enhancement of clean energy infrastructure (SDG 9).
• Treasury Department Rule Expansion: An updated rule allows hydropower facilities to qualify for federal investment tax credits if they reinvest at least 80% of their market value in upgrades, treating them as “new” for tax purposes.
• Bipartisan Support: Key federal tax credits for the sector have been preserved, providing a degree of investment security.

Private Sector Engagement and Future Outlook

Strategic private sector partnerships are emerging as a vital mechanism for revitalizing the aging hydropower fleet and ensuring its continued contribution to SDG 7.

• A landmark $3 billion deal between Google and Brookfield Asset Management aims to upgrade and relicense hydropower facilities to supply clean energy to Google’s data centers.
• This collaboration, which includes 20-year power purchase agreements, provides a scalable model for private investment in refurbishing critical clean energy infrastructure.

Conclusion

The U.S. hydropower sector is integral to achieving national and global Sustainable Development Goals. However, its continued operation is dependent on overcoming significant challenges related to aging infrastructure, economic pressures, and regulatory delays. Substantial and sustained investment, supported by streamlined government policies and innovative private-sector partnerships, is required to modernize these facilities. Such efforts will not only preserve a vital source of clean energy but also enhance environmental stewardship, ensuring that hydropower can effectively contribute to a sustainable energy future.

Sustainable Development Goals (SDGs) Addressed in the Article

• SDG 7: Affordable and Clean Energy

  The article’s central theme is U.S. hydropower, which it identifies as the country’s “oldest and largest source of renewable energy” and a form of “clean energy.” It discusses hydropower’s contribution to the national electricity supply, the challenges to its affordability due to competition and upgrade costs, and efforts to maintain and expand its capacity.

• SDG 9: Industry, Innovation and Infrastructure

  A major focus of the article is the “aging infrastructure” of the U.S. hydropower sector. It highlights that dams have an “average age of 65 years” and that “Almost 450 hydroelectric plants” require relicensing and “billions in upgrades,” directly addressing the need to develop and upgrade sustainable and resilient infrastructure.

• SDG 13: Climate Action

  By discussing a major source of “clean” and “renewable” energy, the article implicitly addresses climate action. Supporting hydropower is a strategy to reduce reliance on fossil fuels. The article mentions federal policies like the Bipartisan Infrastructure Law and tax credits that support clean energy, which are measures to integrate climate change considerations into national policy.

• SDG 15: Life on Land

  The article touches upon the environmental impact of dams. It notes that relicensing requires meeting new environmental standards, including “upgrading old facilities to enable the unobstructed passage for fish and other wildlife.” This directly relates to the protection and restoration of inland freshwater ecosystems.

• SDG 17: Partnerships for the Goals

  The article showcases the importance of partnerships in advancing clean energy. It describes government actions (federal funding and tax credits) and a significant private sector collaboration: the “$3 billion hydropower deal between Google and Brookfield Asset Management.” This exemplifies a public-private partnership model to achieve sustainable development.

Specific SDG Targets Identified

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.

     The article directly relates to this target by discussing the status of hydropower, which “contributed 27 percent of total U.S. utility-scale renewable electricity generation.” It also notes projections for its future contribution, with an expected “rise by 7.5 percent in 2025,” highlighting efforts to maintain and increase the share of this renewable source.

   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.

     While the context is national, the principle of promoting investment is central. The article points to the “$753.6 million” provided by the Bipartisan Infrastructure Law for hydropower and federal tax credits as mechanisms to “promote investment in energy infrastructure.” The $3 billion Google-Brookfield deal is a prime example of private investment in clean energy technology and infrastructure.

2. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being.

     The article’s focus on the “aging infrastructure” of dams and the need for “billions in upgrades” to meet modern safety and environmental standards is a direct reflection of this target. The goal of relicensing is to ensure the infrastructure remains reliable and sustainable.

   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable…

     This target is addressed by the discussion of the relicensing process, which forces operators to “reinvest a minimum of 80 percent of the facility’s market value into infrastructure upgrades.” This retrofitting is necessary to meet stricter environmental standards and continue providing clean energy.

3. SDG 15: Life on Land

   • Target 15.1: By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services…

     The article highlights that a condition for relicensing older dams is mitigating their environmental impact. The requirement for “upgrading old facilities to enable the unobstructed passage for fish and other wildlife” is a specific action aimed at restoring the natural state of freshwater ecosystems affected by the infrastructure.

4. SDG 17: Partnerships for the Goals

   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships…

     The article provides a clear example of this target in action. The U.S. government creates a supportive policy environment through laws and tax credits, while private companies like “Google and Brookfield Asset Management” form a partnership and commit “$3 billion” to upgrade and utilize hydropower, demonstrating an effective public-private model for advancing clean energy.

Indicators for Measuring Progress

1. SDG 7: Affordable and Clean Energy

   • Indicator (Mentioned): Share of renewable energy in total electricity production.

     The article provides specific data points that can be used as indicators, stating that hydropower accounted for “5.86 percent of total utility-scale electricity production in 2024” and is projected to “contribute around 6 percent of U.S. electricity production” in 2025.

   • Indicator (Implied): Investment in clean energy infrastructure.

     The article mentions financial figures that serve as indicators of investment, such as the “$753.6 million” from the Bipartisan Infrastructure Law and the “$3 billion” private deal between Google and Brookfield.

2. SDG 9: Industry, Innovation and Infrastructure

   • Indicator (Implied): Rate of infrastructure modernization and investment.

     The article implies several indicators for this, including the number of plants needing upgrades (“Almost 450 hydroelectric plants”), the average age of the infrastructure (“average age of 65 years”), and the total capacity affected (“over 16 GW of electricity”). Progress could be measured by the number of plants successfully relicensed and upgraded.

3. SDG 15: Life on Land

   • Indicator (Implied): Number of hydropower facilities meeting environmental standards.

     The article implies that progress can be measured by the number of dams that are successfully upgraded to meet modern environmental criteria, specifically those that install technology for the “unobstructed passage for fish and other wildlife.”

4. SDG 17: Partnerships for the Goals

   • Indicator (Mentioned): Financial commitments to public-private partnerships for sustainable development.

     The article provides a concrete monetary value for such a partnership: the “$3 billion hydropower deal between Google and Brookfield Asset Management,” which serves as a direct indicator of private sector commitment leveraged by public policy.

Summary of SDGs, Targets, and Indicators

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