The latest World Hydropower Outlook, published by the International Hydropower Association (IHA), reveals a complex picture of the global hydropower sector.
While hydropower capacity grew by 13.5 GW in 2023, reaching 1412 GW, with pumped storage hydropower increasing by 6.5 GW to 182 GW, there is a concerning downward trend that could jeopardize global decarbonization goals.
Urgent Need for Action
With growing interest in hydropower worldwide, governments must take decisive action to translate this interest into new projects. To achieve the “tripling up” objective agreed upon at COP28, approximately 25 GW of hydropower capacity is needed annually until 2030. After that, reaching net zero emissions by 2050 requires more than doubling this rate of development.
A Promising Pipeline
IHA’s assessment of the “big 100” pipeline of projects under development indicates that accelerated growth is achievable in the early 2030s, but further action is essential to maintain this momentum. The world needs more hydropower projects, implemented with higher standards and faster timelines.
Hydropower’s Vital Role in Energy and Water Systems
Eddie Rich, CEO of IHA, emphasizes hydropower’s critical role as the backbone of reliable energy and water systems. Hydropower not only generates electricity but also provides storage, flexibility, and reliability to support variable renewable sources like solar and wind. It also plays a vital role in water management, contributing to clean water access, irrigation, and flood control.
Have you read?
Africa Boosts Hydropower Capacity by 2GW in 2023, Yet Potential Remains Untapped
Addressing Climate Change Impacts
Climate change is exacerbating the need for investments in water infrastructure like dams and reservoirs. Rich highlights the opportunity to power these essential structures with hydropower whenever possible.
Challenges and Optimism
The report acknowledges the challenges faced by the hydropower sector, including lagging investments and slowed development over the past decade. However, there are also reasons for optimism, such as a healthier project pipeline and a resurgence in pumped storage hydropower.
The Future of Hydropower: Balance and Flexibility
Malcolm Turnbull, IHA President, stresses the importance of hydropower in balancing variable renewable energy sources like solar and wind. He emphasizes the need for governments to plan for long-term energy needs, including a balanced mix of renewables for both generation and long-duration storage. Investors also require long-term certainty due to the significant upfront capital costs associated with hydropower projects.
Global Hydropower Snapshot
- Top 5 Countries for Installed Capacity: China, Brazil, the US, Canada, and Russia.
- China’s Dominance: Nearly half of the new installed capacity in 2023 came from China.
- Europe’s Focus: Modernization of existing hydropower and pumped storage development to achieve 42.5% renewable energy by 2030.
- Africa’s Untapped Potential: Hydropower already provides 40% of sub-Saharan Africa’s power, but 90% of the continent’s potential remains untapped.
- South America’s Reliance: Hydropower contributes 45% of South America’s electricity supply, with over 13 GW of projects in the pipeline.
- Central America’s Dependence: Hydropower accounts for over 30% of electricity in Central America.
- US Modernization Potential: Roughly half of the non-federal hydropower fleet is up for relicensing by 2035.
The World Hydropower Outlook paints a clear picture: hydropower is essential for a sustainable energy future, but decisive action is needed to overcome challenges and accelerate development.
To learn more, download the full report here.