The report is supplementary to a 2024 report, the Hydropower Supply Chain Gap Analysis, which focused on improving understanding of the hydropower supply chain and developing strategies for addressing supply chain challenges. There is a “notable” lack of domestic manufacturing for key hydropower components like large turbines, hydrogenerators, and electric steel, and some components have no domestic source at all. The report argues that the U.S. hydropower supply chain will be limited in its ability to meet future energy needs if the issues of demand signals and supply chain conditions are not addressed. Hydropower projects face their own set of unique challenges stemming from custom design requirements, remote locations, and regulatory requirements for domestic content. The report notes that recent policy measures could help alleviate some supply chain challenges.