Commonwealth Hydropower Program

Note: The Commonwealth Hydropower Round 7 Solicitation closed in March 2016.

Through the Commonwealth Hydropower Initiative, the Massachusetts Clean Energy Center (MassCEC) offers grants for both feasibility studies and construction of hydroelectric facilities. Feasibility studies are capped at the lesser of $45,000 or expected incremental kWh per year x 20 years x $0.01125. Construction projects are capped at the lesser of  $600,000, 50% of actual costs, or $1.00 per incremental kilowatt-hour (kWh) per year for projects that increase an existing system capacity. Hydropower facilities must have qualified (or be expected to qualify) for Massachusetts' Renewable Portfolio Standard. MassCEC is the administrator of the Massachusetts Renewable Energy Trust Fund, the state's clean energy fund.

Eligibility

Applicants must have and demonstrate site control (meaning that they have legal control of the project site, through executed agreement or selection to enter into an agreement.) In addition, the project must demonstrate an additional 200,000 kWh/year (non-conduit feasibility grants) or 50,000 kWh/year (design and construction grants) increase in generation and have at least 20 years of useful life. Projects must have a Federal Energy Regulatory Commission (FERC) license or exemption, or a FERC order stating that the facility does not fall under FERC jurisdiction (not common), or the projects must be eligible for a conduit exemption. Projects that require new dams are not eligible.

Projects must be owned by commercial, industrial, institutional (including not-for-profit), or public entities served by one of the investor-owned electric distribution utilities in Massachusetts -- Fitchburg Gas and Electric Light (Unitil), Massachusetts Electric (National Grid), Nantucket Electric (National Grid), or Eversource -- that contribute to the Renewable Energy Trust Fund. In addition, customers of any Municipal Light Plant (MLP) Department that pays into the Renewable Energy Trust are also eligible (see MassCEC's website for additional information on which MLPs have joined the Renewable Energy Trust Fund.)

Cost-Share

Projects applying for conduit facility feasibility funding must provide a 10% cost-share, while other feasibility study applicants must provide at least 20% cost-share. Design and construction project applicants are responsible for at least 50% cost-share. It should be noted that applicants are encouraged to request less than the maximum allowed funding.

Evaluation Criteria

This is a competitive grant. All applications must meet minimum eligibility criteria and will be evaluated on the clarity of facility and project descriptions, compliance with dam safety regulations, satisfactory explanation of regulatory/licensing status, status of state renewable portfolio standard qualification, and incremental energy production. Projects applying for Design and Construction grants will also be evaluated on  thoroughness of feasibility analysis, technical considerations, an estimate of increased generation, ecological impacts, regulatory and permitting issues, project financing and financial feasibility, and risks identification and strategy for overcoming those risks. Awarded projects are required to meet project milestones, deliverables, and reporting deadlines.

Applications must be submitted according to MassCEC format guidelines; both hard copies and electronic copies are required. See the program website for details and for a complete application package. View the Round 8 Background and Instructions document here.