FY2026 Hydropower Introduction Promotion Support Subsidy (Existing Facility Effective Utilization Strengthening Support Project)

(1) Overview: This is the FY2026 Hydropower Introduction Promotion Support Subsidy (Existing Facility Effective Utilization Strengthening Support Project), administered by the New Energy Foundation (NEF) under METI, with a budget of JPY 1,474,350 thousand. It comprises three sub-programs supporting (a) surveys, (b) construction/upgrade works, and (c) disaster-recovery works at existing hydropower plants, aimed at boosting output and electricity generation through equipment renewal, modification, or use of spare capacity, with a national target of an additional 200 million kWh by FY2030 (Reiwa 12). (2) Eligible applicants: private entities, local governments, power generators (incl. PFI operators) that own and continuously operate hydropower plants in Japan; LLP/SPC/TMK applicants must submit guarantor letters; the plant must be grid-connected with reverse power flow and have been in operation (or post-upgrade) at least 20 years. New plants replacing decommissioned ones and FIT/FIP-certified facilities are excluded. (3) Eligible expenses: for surveys, flow/geology/digital-utilization studies, design fees; for construction works, civil structures, water turbines, generators, electrical and digital systems; for disaster recovery, structures/equipment, and ancillary expenses (all tax-exclusive; pre-decision orders/contracts ineligible). (4) Subsidy rate, ceiling, schedule, points: rate is 2/3 (survey), 1/4 base or up to 1/3 (works, if generation +5%), 1/2 base or up to 2/3 (disaster recovery, if criteria met). Application period: 27 Apr 2026 – 29 Sep 2026 17:00, with three cutoffs (25 May / 22 Jul / 29 Sep); project must finish by 1 Mar 2027 and last in principle ≤2 years. Filing is via jGrants (gBizID Prime required), submitting Form 1 (grant application), Form 2 (implementation plan) and Annexes 1–6.