At the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in Dubai, global governments pledged to triple renewable generation capacity from 3.8 TW in 2022 to 11.2 TW by 2030. This increase in variable renewables poses grid security and flexibility challenges. Hydropower, among low-carbon options, is the most versatile and cost-effective solution for grid stability. Its key strengths are flexibility and resilience, complementing variable renewables with services ranging from seconds to months.
A common myth about hydropower is that it is unreliable due to increasing droughts, but floods will also become more frequent, necessitating more water infrastructure. Additional dams and reservoirs for water management can also be used for power generation. Another misconception is that hydropower is outdated, but it remains a forward-looking technology. The real challenge is political will and time. Considering off-river pumped storage, the potential capacity is virtually unlimited. Policies and market mechanisms are needed to attract investment in sustainable hydropower.
According to the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA), hydropower capacity needs to roughly double from current levels to achieve net-zero targets by 2050. While the hydropower industry could meet the 2030 target, the growth rate has to double from 2030 to 2050 to meet net-zero requirements. In 2023, new hydropower capacity delivery was merely 13.7 GW, including 6.5 GW of PSH. Despite year-to-year variability in large infrastructure projects, the five-year rolling average of capacity delivery has shown a decline since 2016.
‘Big 100’ Pipeline Projects
Globally, there is ample hydropower potential. Modernising existing hydropower assets can boost capacity by around 10 per cent. Additionally, installing generators at dams built for non-power purposes presents significant opportunities. Off-river pumped storage sites also hold vast potential; the Australian National University Atlas identifies over 600,000 potential off-river sites worldwide outside protected areas. Even if only a small fraction are viable, they could provide huge additional capacity.
The ability of the hydropower industry to meet net-zero targets depends on the health of the project pipeline. The International Hydropower Association (IHA) analysed the “Big 100,” the 100 largest greenfield projects, including pumped storage hydropower (PSH). Excluding the massive Grand Inga project, these 100 projects collectively represent 280 GW, about half of the total pipeline capacity. Most projects are in Asia, with a mix of smaller and very large projects up to 10 GW.
Current progress shows that about 45 per cent of this capacity is pending regulatory approval, and a quarter is under construction. With 66 GW in construction, including nearly 15 GW of PSH, the industry is expected to commission around 10 GW of non-PSH and 3 GW of PSH capacity per year. While this falls short of the required 2030 targets, it is close. Post-2030, the challenge will be to ramp up delivery to around 50 GW of non-PSH and 10 GW of PSH capacity annually for 20 years. Projects in the approval stage are expected to start within 5-10 years, potentially delivering 20-25 GW of larger projects annually in the early 2030s, leading to a total annual build rate of 40-50 GW. None of the top 100 projects have yet moved from construction to operation, reflecting a global trend of disappointing growth figures for 2023. The hydropower sector has previously delivered around 35 GW per year, suggesting that with modest supply chain expansion, it can meet the required growth rate.
To meet net-zero goals by 2050, expediting hydropower projects is the key. Early planning and high-quality projects ease approvals and reduce costs. Supportive policies and substantial initial investments are necessary. Streamlining permitting through “one-stop shops,” enhancing institutional capacity, and adhering to high standards and climate resilience guidelines will ensure timely, cost-effective, and robust hydropower development.
Securing finance for hydropower projects is challenging, especially in Africa, due to high costs and risks. Investment fell from USD 75 billion in 2020 to USD 54 billion in 2023, while doubling capacity by 2050 requires USD 3.7 trillion. Annual investment in Africa needs to rise from USD 3.5 billion to USD 23 billion. With public funds covering over two-thirds of investment, private investors need to bridge the gap. The industry is working to reduce risks with new guidelines. Policies should ensure revenue certainty, fair compensation, and legal stability for effective investment.
Market Arrangements and Policy Recommendations
To harness hydropower effectively, market arrangements should include mechanisms that accurately price peak demand and allow surplus power acquisition at low cost. This can be achieved through pay-as-clear auctions, reflecting the cost of the marginal generator. Regulators need to tolerate price volatility, as storage operators rely on peak price differences to realise value. Imposing limits on these price gaps can hinder value extraction.
Hydropower provides essential ancillary services like inertia, frequency control, and black-start capabilities, which are often under-compensated. Clear payment structures for these services should be established to integrate them into hydropower design and enhance overall plant capability. Expanding cross-border trade in these services can improve liquidity and stabilise revenue streams. Long-term contracts for system services are required to secure low-cost capital and ensure revenue certainty. Balancing multiple contracts with simplicity will minimise risks. Modernising hydropower plants is vital for increasing flexibility and efficiency to adapt to changing energy demands and market conditions.
In developing regions like Africa, hydropower projects face revenue risks from unreliable off-takers. Mitigating these risks involves broadening the customer base and implementing guarantee mechanisms.
Strengthening Grids with Hydropower Technology Innovations
Modern hydropower technology is advancing rapidly, transforming from a simple electricity generator to a key provider of grid flexibility. This shift requires innovative solutions to ensure grid stability and enhance efficiency.
Digitalisation and Data Analytics:
Digitalisation is revolutionising hydropower operations with data analytics, machine learning, and predictive maintenance. Real-time monitoring of water availability, turbine performance, and equipment health boosts efficiency and revenue. Digital twin simulations extend the operational range of turbines, improving energy production and grid stability.
Hybridisation with Batteries:
Combining batteries with hydropower plants stores excess energy and releases it when needed, reducing wear on hydraulic units and managing output changes more effectively. This hybridisation enhances grid stability, integrates variable renewable energies (VREs), and creates new revenue opportunities in ancillary services and energy markets.
Hydraulic Short Circuit Operations:
Hydraulic short circuit operations in pumped storage hydropower (PSH) plants allow simultaneous pumping and generating, extending operational ranges and enabling frequency control services. This innovation helps absorb excess grid energy and offers additional flexibility.
Continued Innovation and Relevance:
Digitalisation, battery hybridisation, and hydraulic short-circuit operations increase efficiency, revenue potential, and component lifespan.
Climate Mitigation and Adaptation
Climate change is affecting hydropower with more frequent droughts and floods, impacting production and dam safety. Droughts cut hydropower output significantly, while hydropower helps mitigate drought impacts, saving an estimated USD 131.3 billion annually. Hydropower potential varies by region. In South America, reduced water levels may lower production, while South and East Asia may benefit from higher water volumes. Increasing water demand from agriculture and industry adds pressure, making efficient water management essential. Hydropower reservoirs help prevent flooding by managing river flows during extreme weather. This protects lives, property, and infrastructure, integrating well with other water uses. Switching to a mix of wind, solar, and hydropower reduces water use compared to fossil fuels. The IEA estimates that achieving net-zero emissions by 2050 could cut water withdrawals by nearly 20 billion cubic metres by 2030. The hydropower industry is improving resilience through better infrastructure and sediment management. The Hydropower Sector Climate Resilience Guide offers strategies for climate risk assessment and adaptation, with an updated version due in 2024.
Gender Equality
Gender inequality persists in hydropower despite its role in sustainable energy. A 2023 World Bank study highlights barriers like limited STEM skills, lack of female role models, and unwelcoming work environments.
Address barriers by enhancing education access, closing gender gaps, raising career awareness, supporting women’s development, and involving men in gender equality efforts. The IHA is advancing gender equality through its Women in Sustainable Hydropower (WISH) network, which connects women in the sector and promotes best practices.
Regional Overview and Outlook
North and Central America
The hydropower sector in North and Central America has shown promising developments this year, although new project growth has largely stalled. Policy changes are set to enhance development and modernisation, particularly in the U.S. and Canada, while the growth of greenfield hydropower projects has slowed.
United States
In the U.S., approximately half of the non-federal hydropower fleet is due for relicensing by 2035. Legislation such as the Inflation Reduction Act and the Bipartisan Infrastructure Law have introduced several incentives for hydropower, including the Hydropower Clean Energy Future Act, which seeks to expedite licensing processes, and the Maintaining and Enhancing Hydroelectricity and River Restoration Act, which offers a 30 per cent Investment Tax Credit for hydropower improvements.
In 2023, three key bills received bipartisan support, aiming to improve hydropower efficiency and environmental benefits. The Department of Energy (DOE) has also funded hydroelectric efficiency improvements and new projects. Noteworthy developments include Duke Energy’s plans to nearly double the capacity of the Bad Creek PSH project and the construction of four new hydropower plants by Rye Development at Corps locking facilities. Furthermore, the DOE has selected projects like the Lewis Ridge PSH for funding under its Clean Energy Demonstration Program.
Canada
In Canada, hydropower remains a dominant energy source, with British Columbia and Québec leading major initiatives. British Columbia’s CAD 36 billion Power Pathway plan includes investments in both generation and transmission infrastructure to increase electrification and emission-reduction projects. Ontario has initiated an overhaul of the R.H. Saunders Generating Station, to enhance its efficiency. Hydro-Québec has outlined plans in its Action Plan 2035 including adding 3,800-4,200MW of new hydropower capacity through expanding existing facilities and developing new ones, supported by a CAD 160 billion investment plan.
Mexico
In Mexico, hydropower output has faced challenges due to severe drought conditions, which reduced generation by 40 per cent in 2023. Despite this, the Comisión Federal de Electricidad plans to refurbish seven ageing plants, boosting capacity by 11 MW. This effort aligns with Mexico’s goals to decrease its carbon footprint and enhance renewable energy production. The World Bank’s Multilateral Investment Guarantee Agency has backed this refurbishment with a USD 536 million guarantee.
Central America
Central America continues to rely heavily on hydropower, generating over 30 per cent of electricity in five out of seven countries. In Costa Rica, hydropower remains a major source despite drought-related reductions in generation. The Instituto Costarricense de Electricidad has received two hydropower plants under a build-own-transfer model and resumed energy sales from previously operational plants.
Panama is advancing the 224 MW Changuinola II hydropower project, which is expected to be completed by 2029 as part of its national expansion plan.
South America
South America’s hydropower sector contributes around 45 per cent to its electricity supply. The total hydropower generation for the region increased to 728 TWh, up by approximately 16 TWh from 2022. This growth was bolstered by the addition of 1,191 MW of new hydropower capacity across several countries, with notable increases in Colombia, Chile, Brazil, and Ecuador.
Peru’s Manseriche project, with a projected capacity of 7,550 MW, stands out, alongside Ecuador’s 3,600 MW Zamora G8 project and Colombia’s 2,400 MW Ituango project. The region also celebrated milestones such as the Brazilian Jirau project’s Gold Certification and the launch of Colombia’s Aquasol floating solar project, which integrates solar power with hydropower to enhance energy reliability and reduce carbon emissions.
However, challenges remain. Uruguay faced its worst drought in over 70 years, impacting hydropower reservoir levels, while Brazil’s Santo Antônio plant had to halt operations temporarily due to low water levels. Many hydropower facilities in the region are ageing, with over 50 per cent of installed capacity being over 30 years old. Policy and regulatory hurdles also pose challenges. In Argentina, several hydropower contracts are expiring, creating uncertainty about future operations. Local opposition to hydropower projects, driven by environmental and community concerns, has halted major initiatives, such as Brazil’s São Luiz do Tapajós and the Ribeirão dam project.
China’s investment in South America’s hydropower sector has been substantial, with Chinese firms acquiring stakes in numerous projects and investing in modernizations. Despite this, Foreign Direct Investment (FDI) in the sector has declined, reflecting concerns about environmental impacts and the need for updated regulatory frameworks to address climate change-related challenges.
Country-specific developments include:
Argentina: The Río Grande de Córdoba plant is undergoing a major upgrade, and the Santa Cruz River project is progressing. However, the country only utilises about 20 per cent of its hydropower potential.
Bolivia:
The country has tapped into about 2 per cent of its hydropower potential, with projects like Ivirizu and Miguillas under development. The focus is on large-scale projects with state support.
Brazil:
Hydropower accounts for 67 per cent of the national electricity supply. The sector is seeing numerous small-scale projects and modernization efforts, with 60 per cent of Brazil’s hydropower potential already developed.
Chile:
The country added 228 MW through small and micro projects and is advancing innovative projects like the Espejo de Tarapacá PSH facility.
Colombia:
Four new projects added 643 MW to the grid, and the Ituango project is set to become the largest run-of-river plant in the country.
Ecuador:
The country has developed only 7 per cent of its hydropower potential but is working on significant projects and legislative reforms to boost private investment.
Guyana:
The 165 MW Amalia Falls project is a key development, with the government seeking investment partners.
Paraguay:
The Acaray plant is set for modernization, and the country is exploring hydropower for hydrogen production.
Peru:
With 21 projects scheduled for commissioning by 2028, Peru will expand its hydropower capacity significantly, with additional investment from Chinese firms.
Uruguay:
Despite a historic drought impacting production, Uruguay’s renewable energy share remains high, with ongoing support for modernization.
Venezuela:
Efforts are underway to restore capacity to the General José Antonio Páez hydropower complex, a sign of recovery from the energy crisis.
Europe:
Despite a lack of new greenfield projects in 2023, the focus on pumped storage hydropower (PSH) and modernization of existing facilities in Europe is gaining momentum. Europe’s hydropower sector is influenced by evolving policies and regulatory frameworks. The revised EU Renewable Energy Directive, introduced in late 2023, raised the renewable energy target to 42.5 per cent by 2030. However, over 70 per cent of Europe’s hydropower plants are over 30 years old, with expiring licences creating investment uncertainties. The European Commission’s January 2024 reform of the electricity market aims to stabilise electricity bills and promote long-term contracts, though it excludes reservoir hydropower and PSH from two-way contracts for difference. This regulatory shift highlights the need for a balanced approach to support various hydropower technologies.
Country-Specific Developments:
Austria:
Austria remains a leader in PSH development with almost 2.17 GW of projects in progress. Noteworthy developments include the Ebensee project and the Stegenwald run-of-river plant.
Spain:
Spain is aggressively expanding its energy storage capacity with a target of 22 GW by 2030. Recent initiatives include the Chiara PSH plant, supported by EUR 90 million in grants, and the Valdecañas PSH project, combining hydropower with chemical batteries. Spain’s efforts also include new market entrants like Energo-Pro, investing in existing and new PSH projects.
Switzerland:
Switzerland’s new decree aims to streamline approval processes for 16 PSH projects with a combined capacity of over 2 TWh. This regulatory simplification is needed to address potential winter energy shortages and enhance long-duration energy storage.
United Kingdom:
The UK has revitalised its PSH market with a proposed cap and floor scheme for long-duration energy storage, following strong industry advocacy. Notable projects include the Cruachan 2 expansion and the Red John PSH scheme.
Germany:
In Germany, the modernization of the Rudolf Fettweis plant is underway, converting it into a PSH facility. The EUR 280 million project includes building a new powerhouse for a 57MW pump, updating existing equipment (71MW), and modifying the Forbach basin as the lower reservoir.
Italy:
Italian utility Edison launched the 2.7MW Quassolo hydropower plant on the Dora River, which can power 3,000 homes. Funded partly by a 20-day crowdfunding campaign, which raised EUR 0.3 million of the €12 million total, the project was completed in under 19 months.
Norway:
Norway has commissioned 20 small hydropower plants and is progressing with new PSH projects.
Estonia and Finland:
Both countries are advancing their PSH projects with major investments. Estonia’s Zero Terrain Paldiski project and Finland’s Ailangantunturi plant are key developments supported by both private and public funding.
Bosnia and Herzegovina:
The country is witnessing a surge in hydropower developments, including the Dabar and Mrsovo plants, funded through international loans and local investments.
Africa
Hydropower supplies 40 per cent of electricity in Sub-Saharan Africa. Despite its importance, approximately 90 per cent of the continent’s hydropower potential remains untapped, making it the region with the largest proportion of unexploited capacity globally. In 2023, Africa installed 2 GW of new hydropower capacity, bringing the total to 42 GW. However, this progress is insufficient to meet the continent’s energy goals. The slow pace of hydropower development is largely due to persistent regulatory and market issues. Many projects with permits remain stalled, leading to delays or cancellations that directly impact decarbonisation efforts.
Private investment has become a critical driver of hydropower advancements across Africa. Independent Power Producers (IPPs) are injecting both capital and expertise into the sector. For example, Mabon Energy built a 40 MW hydro plant in Nigeria, and GE Vernova installed four large turbines at another Nigerian project. Additionally, public-private partnerships (PPP) are also facilitating major hydropower projects. A public-private partnership between the Burundian government and Mpanda Hydro Power working on a 10 MW hydro plant that will supply 10 per cent of the country’s electricity.
At COP28, the European Commission announced Team Europe’s pledge of over EUR 20 billion for the Africa–EU Green Energy Initiative (AEGEI), which will enhance access to sustainable energy in Africa and promote renewable energy and energy efficiency. In 2023, EUR 37 million was pledged to hydropower and solar projects in Nigeria.
Regional cooperation is advancing through power pools and shared grids, improving resource utilisation. Angola’s Baynes Dam project, in partnership with Namibia, plans to connect 600 MW, sharing 300 MW with each country. Additionally, a northern connection with the Democratic Republic of the Congo via the Inga Dam is under consideration.
The Africa Hydropower Modernisation Programme Report, published by the African Development Bank (AfDB) and the International Hydropower Association (IHA) in June 2023, provides a continent-wide assessment of hydropower facilities. Of the 87 stations reviewed, 21 plants (4.6 GW, 12 per cent of Africa’s hydropower capacity) are urgently in need of modernization, all located in Sub-Saharan Africa. Another 31 plants (10.1 GW, 26 per cent of capacity) will likely require investment within the next decade. To address these needs, approximately USD 2.1 billion will be required. The AfDB is leading efforts to upgrade 12 hydropower plants with a USD 1 billion investment to address immediate capacity needs and support sustainable development.
Africa’s power sector faces major challenges that hinder growth and sustainability. Regulatory issues, such as weak enforcement and the limited capacity of regulators, create uncertainty. State-owned utilities struggle with revenue collection due to non-payment and theft, deterring private investment and slowing infrastructure expansion. Off-taker creditworthiness issues delay project financing, while limited access to finance, currency volatility, and governance problems further restrict development. The rise of variable renewables like wind and solar calls for innovative storage solutions, which hydropower could provide, but progress is slowed by inadequate infrastructure and technological constraints. Climate change increases extreme weather events, highlighting the need for climate adaptation in energy planning. Additionally, reliance on imported fossil fuels threatens energy security, making a shift to sustainable, local energy sources essential for long-term stability.
Country-Specific Developments:
Angola:
The 2,070 MW Laúca hydropower station, constructed by ANDRITZ, is fully operational, contributing to Angola’s energy supply and socioeconomic development. The country is also advancing projects such as the 2,172 MW Caculo-Cabaca hydropower station with Chinese collaboration. Angola aims to connect to the Southern African Power Pool and integrate regional power.
Burundi:
The Mpanda hydroelectric power station, under a public-private partnership with REGIDESO, is set to supply 10 per cent of Burundi’s electricity. Other projects include the Rusumo Falls plant and the Dama and Siku hydroelectric stations.
Cameroon:
The Nachtigal hydropower project’s first 60 MW turbine was activated in May 2024, with full commissioning expected by the end of 2024. The Bini Warak hydroelectric project and the Kikot hydropower project are also in development.
Côte d’Ivoire:
The 44MW Singrobo-Ahouaty hydropower project, with €174.3 million in total investment and €90.7 million from AfDB, is nearing completion with key installations underway.
DR Congo:
The 240 MW Busanga hydropower plant, a collaboration between China and DR Congo, was inaugurated in 2023. The Inga 3 hydroelectric project, with a planned capacity of 11,050 MW, is in the permitting stage, with construction expected to start in 2026.
Egypt:
Egypt is evaluating a proposed 2 GW pumped storage hydropower (PSH) project with China Energy. Siemens Energy is also rehabilitating three hydropower plants at Aswan, adding 300 MW and extending their lifespan.
Gabon:
The Kinguélé Aval hydroelectric project secured EUR 134 million in initial funding. The 35 MW project on the Mbei River is being developed through a public-private partnership and includes plans for a biodiversity sanctuary.
Liberia:
The World Bank is funding a new dam on the St. Paul River to add 150 MW to Liberia’s grid, a step towards improving power access.
Madagascar:
ENHY, a venture by Hyvity and the Filatex Group, aims to develop hydropower plants in Madagascar. The Volobe hydropower project, with a EUR 350 million budget, has reached a power purchase agreement.
Morocco:
The El Menzel PSH plant, expected to enter operation by 2028, will add 300 MW to Morocco’s grid, enhancing renewable energy integration and grid stability.
Mozambique:
The Mphanda Nkuwa hydropower project, led by an EDF-led consortium, is set to generate 1,500 MW. Mozambique plans to redirect electricity from the Cahora Bassa plant for domestic use by 2030.
Namibia:
The Baynes hydropower project, with a planned capacity of 878 MW, is in the permitting stage and expected to be developed in phases, with commissioning by 2031.
Nigeria:
The Dadinkowa hydropower project and the Zungeru hydropower plant are recent developments in Nigeria. The country’s Federal Ministry of Water Resources is also seeking private partners for the 20 MW Farin Ruwa hydropower plant.
Rwanda:
Rwanda’s Nyabarongo II project, funded by China Exim Bank, aims to generate 43.5 MW. The Regional Rusumo Falls Hydroelectric Project will provide 80 MW to the national grids of Burundi, Rwanda, and Tanzania.
Senegal:
The 128 MW Sambangalou hydropower project, developed by VINCI, is under construction, with plans to benefit the Gambia River Basin Development Organisation countries.
South Africa:
The DWS Hydropower Independent Producer Programme aims to attract private investment, though progress has been slow. Investments in infrastructure modernization, such as the Steenbras Hydro Pump Station, have helped alleviate electricity shortages.
Tanzania:
The Julius Nyerere Hydropower Project, a 2,115 MW initiative, is connected to the national grid. The Kakono hydropower plant, with funding from the EU and the Agence Française de Développement, is also in progress.
Uganda:
The Karuma hydropower plant, completed in 2023, adds 600 MW to Uganda’s grid, crucial for meeting growing electricity needs.
Zambia:
Zambia has cancelled the Batoka hydropower plant contract due to procurement and cost concerns. The 750 MW Kafue Gorge Lower hydropower plant, completed by ZESCO, ensures full capacity utilisation.
South and Central Asia
In 2023, South and Central Asia saw promising signs of progress in large-scale hydropower projects and regional cooperation. India announced several major pumped storage hydropower (PSH) projects. Central Asia’s Kambarata 1 hydropower project continued to receive support from multiple governments. While the year did not see many new projects come online, ongoing projects in Bhutan and Pakistan neared completion. The modernization of existing assets remains vital for the region’s electricity systems.
The Central Asia South Asia Transmission and Trade Project (CASA-1000) faced delays but saw renewed discussions in late 2023. This project aims to enhance electricity interconnection between Kyrgyzstan, Tajikistan, Afghanistan, and Pakistan. The World Bank announced additional support measures for the involved countries. Azerbaijan and Iran continued to collaborate on the Khudaferin and Giz Galasi dams, nearing completion with 96 per cent of the work done. Kyrgyzstan and Georgia also signed a Memorandum of Understanding (MOU) to share energy sector reform knowledge.
The geopolitical implications of water and electricity management are significant in the region, given the historical tensions and the need for climate adaptation. Droughts prompted emergency measures in Bangladesh, Uzbekistan, and Iran. Bangladesh faced severe power cuts due to heatwaves, while Uzbekistan issued penalties for water waste amid reduced river flows. Iran’s water shortages affected hydropower generation, leading to increased overuse of resources. Conversely, countries like Pakistan and northern India experienced significant flooding, impacting hydropower projects and causing infrastructure damage.
Country-Specific Developments:
Azerbaijan:
Aims to expand hydropower capacity from 170 MW to 500 MW within 2-3 years.
Bhutan:
The Punatsangchhu-II project nears completion, with plans for commissioning by late 2024. The Nikachhu Dam was commissioned in November 2023.
Georgia:
Launched a new initiative for small renewable energy projects and held a tender for new hydropower and solar projects. The European Bank of Reconstruction and Development (EBRD) approved a safety upgrade for the Enguri hydropower project.
India:
NHPC Limited is developing 2 GW in Odisha, 7.35 GW in Maharashtra, and 750 MW in Gujarat. Adani Green Energy will invest INR 245 billion in Tamil Nadu for 4.9 GW of PSH. Himachal Pradesh received a USD 200 million World Bank loan for 10 GW of renewable energy. Madhya Pradesh is starting a 1.44 GW PSH project, and Greenko’s 1.68 GW Pinnapuram PSH project will begin by late 2024. Arunachal Pradesh plans 12 hydropower and PSH projects totaling 11.5 GW, with SJVN adding 5 GW.
Iran:
Commissioned the 176 MW Chamshir hydropower project, Iran’s largest roller-compacted concrete dam.
Iraq:
Completed routine maintenance on the Samarra Dam hydroelectric power station.
Kazakhstan:
Developed an action plan to increase capacity by 26 GW by 2035, including 600 MW from hydropower.
Kyrgyzstan:
Signed agreements to support 3.6 GW of renewable projects, including hydropower. The World Bank provided financing for small hydropower projects.
Nepal:
Added over 400 MW of new hydropower capacity with several projects coming online and continued progress on pipeline projects.
Pakistan:
Announced completion of the 4.2 MW Nai Gaj project in 2024 and resumed operations at the Neelum Jhelum project after repairs.
Russia:
Krasnogorsk 1 and 2 plants were commissioned in April 2023, totaling 49.8MW. RusHydro is advancing small hydro projects in the North Caucasus. Modernization increased Votkinskaya’s capacity from 100 MW to 115 MW and Ezminskaya’s units from 45MW to 60MW. SO-UES Chairman Fedor Opadchiy noted Russia has only utilised 20 per cent of its hydropower potential, with much room for growth.
Tajikistan:
The 3.78GW Rogun project is backed by a US$15 million World Bank package, a US$500 million AIIB loan, and a US$100 million Saudi Fund loan. The Sarband hydropower project’s Unit 1 is now 270MW, upgraded with ADB support. The US$50 million Green Economy Financing Facility Tajikistan II, from EBRD and the Green Climate Fund, will fund local projects. EBRD is also modernising the Qairokkum hydropower project. Masdar announced a joint venture for 500MW of new renewable energy projects.
UAE:
Dubai’s first PSH project, 240 MW Hatta, reached 74 per cent completion, with commissioning planned for 2025.
Uzbekistan:
Tendered for five new hydropower projects and planned to build its first PSH station.
East Asia and Pacific
The Asia-Pacific region is witnessing a dynamic evolution in hydropower development, driven by ambitious national targets and significant new projects. China remains at the forefront of global hydropower advancements.
Australia is developing the world’s largest PSH plant in Queensland, with major contracts awarded. However, Snowy Hydro 2.0 faces a delay of approximately two years due to supply chain issues and increased costs, now estimated at US$5.1 billion. On the other hand, Upper Hunter Hydro plans to develop a 1.6 GW PSH project at the Glenbawn and Glennies Creek dams.
Floating solar projects are gaining momentum across the region. Thailand is set to install 2,725 MW of capacity through 15 hydro-floating solar hybrid projects, while Malaysia is constructing its first 50 MW floating solar unit.
The energy demand of the region is growing by about 3 per cent annually—three times the global average. Despite this, fossil fuels remain dominant, with coal-fired power generation increasing in Southeast Asia, contrary to global trends. Hydropower capacity is expected to grow to meet rising electricity demands and provide export opportunities. However, many policymakers have yet to fully integrate hydropower into their net-zero strategies, with countries like Australia, Indonesia, Thailand, and the Philippines still heavily reliant on fossil fuels.
In the Lower Mekong region, over 10 GW of new hydropower projects are planned, but this capacity may still fall short of ASEAN’s regional renewable development targets. The lack of coordinated, holistic planning at the regional level hinders progress. For instance, Laos’ hydropower resources could benefit neighbouring countries like Vietnam and Thailand through exports, while Vietnam could send excess solar power to Laos to reduce curtailment.
Country-Specific Developments:
Australia:
Australia is targeting a 43 per cent reduction in greenhouse gas emissions by 2030. Key projects include the large PSH plant in Queensland and a 1.6 GW PSH project in the Hunter Valley. However, Snowy Hydro 2.0 faces delays and budget increases.
China:
In 2023, China added 6.7 GW of new hydropower capacity, including 6.2 GW of PSH. The Yalongjiang Daofu PSH project, with a total installed capacity of 2.1 GW, is the highest-altitude PSH station under construction.
Indonesia:
The government aims to add over 10 GW of hydropower by 2030. Key projects include the 1,375 MW Mentarang Induk plant and the resumption of the 9,000 MW Kayan hydropower project.
The Philippines:
The Laguna PSH project, valued at USD 1.3 billion, is at the permitting stage. Additionally, the 24 MW battery storage facility is operational, and the 8.4 MW Maladugao River plant is approved.
Thailand:
The country is advancing with 15 hydro-floating solar hybrid projects totalling 2,725 MW. Thailand aims to increase its renewable energy share to 30 per cent by 2037.
Malaysia:
Plans include a 2.5 GW hybrid hydro-floating solar project and a 187.5 MW hydropower plant in Tenom. Sarawak Energy is also building a 50 MW floating solar unit.
Vietnam:
Vietnam’s hydropower potential remains largely untapped. Although the government plans to increase hydropower capacity to 29.35 GW by 2030, concerns over changing weather patterns and supply imbalances persist.
For further reading, refer to the original source “2024 World Hydropower Outlook” by the International Hydropower Association (IHA).