NAICS 221111 Quarterly Industry Report
Hydroelectric Power Generation
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 221111Sector: Utilities (22)Updated: Q1 2026
About This Report
This industry profile for Hydroelectric Power Generation (NAICS 221111) draws on data from the Bureau of Labor Statistics[6], U.S. Census Bureau, and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, energy analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the hydroelectric power generation industry.
Industry Definition & Overview
Hydroelectric Power Generation (NAICS 221111) encompasses establishments primarily engaged in operating hydroelectric power generation facilities that use water power to drive turbines and produce electric energy per the U.S. Census Bureau[5]. The generated electricity is delivered to bulk power transmission systems or distribution networks. This classification includes conventional dam-based generation, run-of-river projects, and pumped-storage hydroelectric facilities that store energy by moving water between upper and lower reservoirs.
About 555 establishments employ roughly 4,582 workers, generating approximately $484 million in annual payroll per the Bureau of Labor Statistics[6]. Total U.S. conventional hydroelectric capacity stands at roughly 80,090 megawatts, producing about 6 percent of national electricity generation. Washington, California, and Oregon account for roughly half of total domestic hydroelectric capacity, reflecting the concentration of major dam systems in the Pacific Northwest and along western river basins.
Per the SBA Table of Size Standards[7], the size standard is 750 employees. Hydroelectric facilities provide 88 percent of all utility-scale energy storage through pumped-storage operations, giving them a strategic role in grid reliability beyond baseload generation. The Federal Energy Regulatory Commission (FERC) licenses non-federal hydroelectric projects, with license terms running 30 to 50 years. Many facilities built in the mid-20th century face relicensing proceedings that require updated environmental impact studies, fish passage modifications, and minimum flow requirements that can reduce generation capacity.
What's Included in This Industry
- Conventional dam-based hydroelectric generation
- Run-of-river hydroelectric power production
- Pumped-storage hydroelectric operations
- Turbine and generator maintenance
- Dam safety monitoring and compliance
- Fish passage and environmental mitigation
- Water flow management and reservoir operations
- FERC license compliance and reporting
- Grid interconnection and power delivery
- Flood control coordination with generation
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Utilities | 22 |
| Subsector | Utilities | 221 |
| Industry Group | Electric Power Generation, Transmission and Distribution | 2211 |
| NAICS Industry | Electric Power Generation | 22111 |
| National Industry | Hydroelectric Power Generation | 221111 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 221121 | Electric Bulk Power Transmission and Control | Electric Bulk Power Transmission receives generated electricity from hydroelectric plants for long-distance transport across high-voltage lines to regional distribution systems |
| 221122 | Electric Power Distribution | Electric Power Distribution delivers hydroelectric energy to end-use customers through local distribution networks after receiving power from transmission systems |
| 221112 | Fossil Fuel Electric Power Generation | Fossil Fuel Electric Power Generation provides dispatchable thermal capacity that complements hydro resources during low-water periods when reservoir levels reduce hydroelectric output |
| 237110 | Water and Sewer Line and Related Structures Construction | Water and Sewer Line Construction builds water conveyance infrastructure including penstocks, tunnels, and canal systems that deliver water from reservoirs to hydroelectric generating turbines |
| 237130 | Power and Communication Line and Related Structures Construction | Power and Communication Line Construction builds transmission interconnections that carry hydroelectric output from remote dam sites to load centers and grid substations |
| 541330 | Engineering Services | Engineering Services design hydroelectric facilities, turbine installations, fish passage systems, and dam safety modifications during original construction and FERC relicensing projects |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | New York | 10.3% | 56 |
| 2 | Wisconsin | 8.3% | 45 |
| 3 | Idaho | 6.7% | 36 |
| 4 | California | 6.5% | 35 |
| 5 | Maine | 5.5% | 30 |
| 6 | Michigan | 5.2% | 28 |
| 7 | New Hampshire | 5.0% | 27 |
| 8 | Massachusetts | 4.3% | 23 |
| 9 | Washington | 3.5% | 19 |
| 10 | Oregon | 3.3% | 18 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
16
Total SBA Loans
$6.2M
Total Loan Volume
$385K
Average Loan Size
14 yrs
Average Loan Term
11.27%
Average Interest Rate
32
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Hydroelectric Power Generation (NAICS 221111) has a size standard of 750 employees for federal contracting purposes. SBA 7(a) loans[8] support turbine upgrades, dam safety improvements, and working capital for qualifying operators. Small hydroelectric projects under 10 megawatts represent an accessible entry point for firms meeting the employee threshold. Additionally, 504/CDC loans[9] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | TD Bank, National Association | 8 | $5.8M | $720K |
| 2 | FirstBank Puerto Rico | 8 | $400K | $50K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate hydroelectric power facilities?
Operators include federal agencies (Bureau of Reclamation, Army Corps of Engineers, TVA), investor-owned utilities, municipal power authorities, and independent power producers. About 555 establishments employ roughly 4,582 workers per the U.S. Census Bureau[5].
How much of U.S. electricity comes from hydropower?
Hydroelectric generation accounts for approximately 6 percent of total U.S. electricity production and about 27 percent of renewable electricity generation per the Bureau of Labor Statistics[6]. Total conventional hydroelectric capacity is roughly 80,090 megawatts across the country.
What is the SBA size standard for Hydroelectric Power Generation?
Per the SBA Table of Size Standards[7], NAICS 221111 has a size standard of 750 employees. This determines eligibility for SBA loans, federal contracting set-asides, and small business programs.
What NAICS codes are related to hydroelectric power?
Related codes include NAICS 221121 (Transmission), NAICS 221122 (Distribution), NAICS 221112 (Fossil Fuel Generation), NAICS 237110 (Water Line Construction), and NAICS 541330 (Engineering) per the U.S. Census Bureau[5].
Where is hydroelectric capacity concentrated?
Washington, California, and Oregon hold roughly half of total U.S. hydroelectric capacity, reflecting major dam systems along the Columbia River and other western waterways. The Grand Coulee Dam in Washington alone has over 6,800 megawatts of installed capacity.
What activities are included in NAICS 221111?
Core activities include dam-based generation, run-of-river production, pumped-storage operations, turbine maintenance, dam safety monitoring, fish passage management, reservoir operations, and FERC compliance per the U.S. Census Bureau[5].
Can hydroelectric businesses get SBA loans?
Yes, firms meeting the 750-employee size standard qualify for SBA 7(a) loans[8] covering turbine upgrades, dam safety work, and working capital. Small hydro projects under 10 megawatts are the most common small-business entry point.
What is pumped-storage hydropower?
Pumped-storage facilities move water between upper and lower reservoirs to store and release energy on demand per the Bureau of Labor Statistics[6]. These systems provide 88 percent of all utility-scale energy storage in the U.S. and help balance intermittent renewable generation from solar and wind.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504/CDC loans sba.gov
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