PNNL

Abstract

The Inflation Reduction Act (IRA) creates significant incentives for clean energy technologies including pumped storage hydropower (PSH). The investment tax credit (ITC) is expected to sunset in 2033 (or later). This decade-long window of opportunity can accommodate the lead times typically necessary for developing PSH. The ITC for PSH likely ranges from 6%-50%. Portions of the ITC are spatially dependent. 22 states have the potential for deployment of PSH at a feasible site with the maximum ITC of 50%, based on currently defined areas under the energy community tax credit bonus. Regions including the central Rockies, Appalachia and the California-Nevada border have especially high combined potential for site feasibility and ITC.