Hydropower generation involves harnessing the energy of flowing water to produce electricity. It typically utilizes dams, rivers, or other water sources to drive turbines, converting kinetic energy into electrical power. This renewable energy method is clean, sustainable, and a significant contributor to global electricity production. Hydropower provides base-load power, supports grid stability, and plays a vital role in reducing carbon emissions. Its versatility ranges from large-scale dams to small-scale projects, making it a key element in the global transition to cleaner and more sustainable energy systems.
In addition, according to the EFSC investment group, the global investment in the construction and modernization of hydroelectric power plants will reach over US$ 36.3 billion. In 2021, energy companies across the globe added 14 GW of installed hydropower capacity, and total energy production reached over 4,400 TWh. The contribution of hydropower to electricity generation is greater than all other renewable energy sources combined, including wind, solar PV, geothermal, and bioenergy. Such investments in hydropower plants or projects across the globe are expected to fuel the hydropower generation market growth during the forecast period.
Growing Electricity Demand and Export Opportunities in Emerging Regions
With the rapidly growing hydropower industry over the past few years in emerging regions such as Asia Pacific, Africa, and Latin America, the demand for hydropower generation is also increasing. Sub-Saharan Africa is expected to witness the third-largest growth in hydropower plant additions in the next decade due to the largely untapped potential and the need to improve access to electricity at low cost. The expansion of hydropower in Brazil, which has in the past driven plant expansion in Latin America, has slowed due to the limited availability of economically viable locations. In addition, Colombia and Argentina will lead the growth of hydropower plants in Latin America. In Italy, hydropower development is already showcasing strong momentum, which is expected to fuel the plant expansion in Europe in the coming years. Hence, investments in hydropower projects and the rise in the need to explore the untapped potential of hydropower in the above-mentioned regions are anticipated to boost the hydropower generation market growth during the forecast period.
Hydropower Generation Market Analysis: Plant Type Overview
Based on plant type, the global hydropower generation market is segmented into small hydro, large hydro, and pumped storage hydropower. The large hydro segment accounted for the largest market hydropower generation market share in the hydropower generation market. The large hydro segment accounted for 42.5% of the total hydropower generation market in 2022 and is expected to maintain its dominance during the hydropower generation market forecast period. This is owing to the high installation of large hydro power plants across the globe. In addition, the major economies, such as China, Brazil, Canada, Russia, India, and Vietnam, with high installation of large hydropower plants, are driving the hydropower generation market during the forecast period. Moreover, the ongoing construction of large hydropower projects with less installation cost in emerging economies is likely to fuel the growth of the market from 2022 to 2030. Furthermore, the advantages of large hydropower projects such as electrification goals, regional economic development, and integral policies toward the development of hydropower projects are projected to propel the hydropower generation market in the coming years.
Hydropower Generation Market Analysis: End User Overview
Based on end user, the global hydropower generation market is segmented into residential, commercial, and industrial. The industrial segment accounted for 43.8% of the overall hydropower generation market share in 2022 and is expected to maintain its dominance from 2022 to 2030. This is owing to the rising demand for electricity from industrial customers in countries such as the US, China, India, Brazil, Japan, Russia, etc. Rapid economic growth and industrial development in advanced economies, particularly in North America, Europe, Japan, and Australia, spurred hydropower plant expansion until 2005. This is further expected to be driven by countries such as China, India, Brazil, Turkey, and Canada from 2005 to 2030.
With a drop in renewable energy costs and technological innovation, the power generation industry can make the electric grid more reliable by adding a new clean energy generation plant type while providing flexible services to overcome fluctuating renewable energy production and demand peaks. Hence, the rise in demand for clean power generation from industrial consumers across the globe, along with carbon emission reduction targets by industries, is further anticipated to fuel the hydropower generation market growth during the forecast period.
Hydropower Generation Market: Competitive Landscape and Key Developments
RusHydro, Hydro-Quebec, BC Hydro, StatKraft, NHPC, EDF SA, China Yangtze Power, A Energi, Enel SpA, Centrais Eletricas Brasileiras SA Andritz Hydro USA Inc, GE Energy, CPFL Energia S.A., Sinohydro Corporation, IHI Corporation, Alstom Hydro, China Hydroelectric Corporation, China Three Gorges Corporation, ABB Ltd, and Tata Power Corporation are among the key hydropower generation market players profiled during this study. In addition, several other important hydropower generation market players have been studied and analyzed during the study to get a holistic view of the hydropower generation market and its ecosystem.
| Year | News | Country |
| 2024 | Statkraft (renewable energy company in Europe) is planning to invest US$ 7 billion in the upgradation of Norwegian hydro and wind power facilities and the construction of new onshore wind farms. | Europe |
| 2023 | European Union, African Development Bank, and France invested US$ 300 million in Tanzania’s hydropower project in the Kagera region. | Africa |