World Hydropower Outlook 2023

1 2023 World Hydropower Outlook
2023
World
Hydropower
Outlook
Opportunities to advance net zero
International Hydropower Association hydropower.org

Contents
Jatiluhur assessment, Indonesia
Credit: Amina Kadyrzhanova
Foreword ...........................................................................................................................................................................3
Executive summary ......................................................................................................................................................4
Tracking Hydropower Against Net Zero ............................................................................................................8
Hydropower’s contribution to net zero ...........................................................................................................8
Hydropower potential: where are the opportunities? .............................................................................12
Developing new hydropower ..................................................................................................................12
Pumped Storage Hydropower (PSH) potential .................................................................................12
Modernising existing infrastructure ......................................................................................................13
Retrofitting non-powered dams .............................................................................................................15
What is currently in the new development pipeline?...............................................................................16
Evolution of the global hydropower projects pipeline...................................................................18
Are there enough projects in the pipeline to meet net zero targets?.......................................19
Priority policy themes ...............................................................................................................................................22
Climate resilience and drought .........................................................................................................................22
Floating solar/hybrids ...........................................................................................................................................24
Equality in the Hydropower sector...................................................................................................................27
Global trends .................................................................................................................................................................28
With thanks from our sponsors Regional Analysis in depth .....................................................................................................................................32
Europe ........................................................................................................................................................................32
North and Central America .................................................................................................................................39
South America .........................................................................................................................................................44
Africa ...........................................................................................................................................................................49
South and Central Asia .........................................................................................................................................57
Supporting Sponsors
East Asia and Pacific ..............................................................................................................................................62
Practical solutions for the future development of sustainable hydropower................................67
Installed capacity and generation 2022 ..........................................................................................................69
Acknowledgements ...................................................................................................................................................71
Foreword
Welcome to the first edition of the World Hydropower Outlook. While climate change remains the biggest threat In 2022 more than 34 GW of new hydropower capacity was commissioned around the world. This is the first time
facing the planet and progress is falling short of what is needed to achieve net zero by 2050, this report identifies since 2016 that more than 30 GW of new capacity has been delivered. IHA is proud of the growing momentum
where we are seeing the green shoots of a sustainable hydropower renaissance. Nonetheless, further significant of hydropower development globally, and its ability to provide wider opportunities for water management in
expansion of sustainable hydropower capacity is essential to underpin the global transition to renewables. mitigating the impacts of floods and drought. This Outlook covers these areas and more, including highlighting the
opportunities modernisation brings and the levels of investment needed to achieve this.
The Hydropower Sustainability Standard, the first sustainability standard of its kind in the renewables sector,
celebrated the first certification in Tajikistan this year. Many more are in the pipeline helping to ensure that With the support of our members, we will continue to build a steady drumbeat of events and activities to support
hydropower in the 21st century can be built and operated sustainably.   this momentum. This will include high-level policy missions, the continuation of the #WithHydropower campaign, a
second Global Hydropower Day and co-hosting the World Hydropower Congress with the Government of Indonesia.
We have seen positive announcements in China, India and the United States supporting pumped storage
All setting the stage for sustainable hydropower’s 21st century role in the lead up to COP28.
hydropower (PSH). These water batteries will form a vital part of the future of hydropower development. In
2021 China announced a target of 120 GW of pumped storage capacity by 2030. The US Inflation Reduction We understand this is a marathon and not a sprint, but momentum must be increased if we are to reach net zero by
Act, announced in 2022, includes a US$369 bn package of tax credits for the nation's energy sector which will 2050 and keep the global temperature rise below 1.5°C. The key message from this World Hydropower Outlook, is
encourage pumped hydro projects. In early 2023 the Indian Government also published their ‘Guidelines to Promote the urgent need to fill the gap between planned and required hydropower capacity for 2050. This will not happen
Development of Pump Storage Projects’ which set out the financial mechanisms and policies required to achieve without clear political action, supported by industry, regulators and the wider stakeholder community.
18.8 GW of pumped storage by 2032.
In a sign of how these policy decisions affect investments, New South Wales in Australia announced in September
2022 an A$45 million funding package to unlock the development of five new PSH projects. Just a month later, the
Queensland Premier announced a plan to investigate the world’s largest PSH project, which could provide 5 GW of
installed capacity and 24-hour storage to the state grid.
Roger Gill Eddie Rich

IHA President IHA CEO

4 2023 World Hydropower Outlook Executive summary
Executive
summary
This first edition of the World Hydropower Outlook looks

ahead to the opportunities and challenges facing the
Electricity generated from hydropower in
sector during the energy transition. It also provides a To get there we need to deploy over 45 GW a year. The Baihetan hydropower station, China
2022: 4,408TWh Credit: CTG
status of the present situation and a review of recent hydropower sector and its partners have achieved this
+3.7% increase from 2021
developments. before - in 2012, 47 GW was commissioned. However,
our forecast of the pipeline suggests that without
We know that sustainable hydropower plays a vital Hydropower installed capacity reached in
urgent action we will fall a long way short with 590 GW
role in the energy transition; its unique characteristics 2021: 1,397GW
of projects at various stages of development, including
– flexible, renewable electricity generation that is +2.7% increase from 2021
214 GW of pumped storage. Even if all this capacity
deployable at scale – mean it can deliver reliable power,
back up wind and solar photovoltaic (PV) generation
is built (only 131 GW of the pipeline is actually under
Capacity added in 2022,
4,408 TWh 1,397 GW 34 GW 175 GW 10.5 GW
construction) it will still leave aincluding
gap of over 700 GW. Electricity generated from Hydropower installed Capacity added in 2022, Pumped storage installed Pumped storage capacity
and ensure that we do not have to fall back on fossil
pumped storage: 34GW hydropower in 2022 capacity reached in 2022 including pumped storage capacity reached in 2022 added in 2022
fuels or yet-to-be-deployed technologies to keep the We know the potential is out there. Off-river pumped
Up on 26GW in 2021
lights on. storage can be widely deployed and the Australian
up on up on
+3.7% +2.7% +6%

National University has identified over half a million
The scale of deployment needed is big, yet attainable.
The International Energy Agency (IEA) and International
Pumped storage installed capacity
potential PSH sites globally and 23 million GWh of
reached in 2022: 175GW
storage capacity. For conventional hydropower, there increase from 2021 on 2021
26GW
added in 2021 on 2021
4.7GW
added in 2021
Renewable Energy Agency (IRENA) both estimate +6% on 2021
remains a vast amount of economically viable potential
that the most cost effective, achievable global net
across all continents, more than enough to deliver
zero energy system will require around twice as much Pumped storage capacity added in 2022
hydropower’s essential role in the energy transition.
hydropower by 2050 as there is today - that is between 10.5GW
2,500 GW and 3,000 GW, including pumped storage Potential does notadded
Up on 4.7GW just sit within
in 2021greenfield sites; the
hydropower (PSH). hydropower fleet is ageing. Almost half of the global
To unlock this potential IHA urges governments and policy makers to take
these important steps:
1 Incentivise sustainable hydropower development through financial and

market mechanisms that reward flexibility.
Credit: Erhard by Talis

2 Accelerate the development of renewables through streamlined
permitting and licensing.
3 Embed hydropower sustainability practices in government regulation.
capacity (630 GW) is over 30 years of age, and almost

40 per cent (490 GW) is over 40 years old, according to
IHA data. This presents a huge investment opportunity,
not only to secure existing capacity, but also to increase environmental constraints which must be carefully 2022 in brief
both generating capacity and capability, allowing more assessed and considered. IHA strongly encourages In 2022 more than 34 GW of new capacity was GW of capacity by the 2030s. Elsewhere in the region
flexible operation in response to changing electricity developers to use the Hydropower Sustainability commissioned around the world, including over 10 Laos, with over 1 GW of new capacity, was the only
grids and climate change. Standard, the first global certification system of its kind GW of pumped storage. This is the first time since country to add significant new capacity. However,
2016 that more than 30 GW of new capacity has been
We also know that most dams are not used for in the renewables sector. Governed by the Hydropower developments in pumped storage continue apace,
delivered. While direct year on year comparisons can be
hydropower – out of nearly 59,000 large dams (higher Sustainability Alliance, a multi-stakeholder body, the with an announcement in Australia of what will be the
misleading due to the large size of individual projects,
than 15 metres) and reservoirs (more than 3 million Standard defines globally accepted environmental, world’s largest pumped hydro facility in the state of
it is nonetheless a positive sign that governments,
cubic metres), only 21 per cent of single purpose and social and governance good practice requirements for Queensland, and more developments underway in the
industry and wider stakeholders appreciate the essential
16 per cent of multipurpose reservoirs are used for hydropower. It covers 12 topics and is aligned with the Philippines and Thailand.
role that hydropower will play on the electricity grids of
electricity generation. While not all these non-powered World Bank and IFC Sustainability Framework, green In central and southern Asia nearly 2 GW of new
the future.
dams would be appropriate for hydropower, where in- bonds, carbon credits, and private investor safeguards.
capacity was installed, including large projects in
depth assessments have been carried out, considerable In March 2023, the Sebzor hydropower project, an 11 Hydropower provides around 4,400 TWh, which is over Pakistan (Karot, 720 MW) and India (Bajoli Holi,
retrofitting potential has been identified. In the US for MW hydropower project owned by Pamir Energy in 15 per cent of the world’s electricity. 180 MW), with many large-scale projects nearing
example, the Department of Energy Wind and Water Tajikistan, was the world's first hydropower project In east Asia and indeed globally, China continues completion and set to be commissioned in 2024/25. In a
Program found as much as 12 GW of potential, which to be certified against the Hydropower Sustainability to lead the way, with nearly 24 GW of new capacity further welcome development, the Government of India
could increase the US’s fleet by 15 per cent – enough to Standard. Many more are in the pipeline, demonstrating brought into service in 2022, including the final units at published its Guidelines on Pumped Storage Projects,
power nearly 5 million US homes annually. that, in the words of the 2021 San José Declaration: the huge 16 GW Baihetan project. China’s new capacity recognising the importance of PSH in providing grid
Of course, not all economically viable potential “going forward, the only acceptable hydropower is included over 8 GW of PSH, reflecting its high ambitions services as India’s grid sees increasing levels of variable
will be suitable for development, due to social and sustainable hydropower”. for pumped storage which could see as much as 270 renewables like wind and solar PV.
Both North and South America gained more than 1 continent. IHA identified that modernising the existing Methodology methodologies. For example, some countries may
GW in new capacity in 2022, with notable increases in fleet could help secure the availability of over 14.7 GW The data presented in this report has been continuously not include ‘off-grid’ facilities (hydropower plants not
Canada (over 1 GW), Colombia (618 MW) and Chile (477 of installed capacity, increase project flexibility, reduce tracked and updated to account for new information connected to the main electricity grid) in their official
MW) from several large plants in those countries. There maintenance costs, enhance water management, and in our global hydropower database, which tracks more statistics, while others do. Where possible we have
were continued positive policy developments including enable safer operations, all while being less cost- than 13,000 stations in over 150 countries. tried to account for these differences, but it is likely that
in the USA with the Inflation Reduction Act and in intensive than developing greenfield projects. For those inconsistencies remain.
Data were compiled by a team of analysts using
Canada, the 2023 budget will incentivise hydropower projects in the highest-need category, approximately
information sourced from (1) official statistics from When generation data from primary sources is not
development through innovative tax credit schemes. US$2.1bn will need to be invested. For medium-need
governments, regulation agencies, transmission available, estimates are prepared based on the previous
projects, a further US$4.7bn investment will be required.
In Africa steady progress continues with just under 2 network operators and asset owners; (2) scientific year’s figure, averaged capacity factors and regional
GW added in 2022, with a mixture of big projects over Perhaps one of the more unexpected developments articles and reports; (3) daily news reports involving meteorological events and data.
50 MW (Ethiopia, Guinea and Zambia) and smaller in 2022 was the significant increase in hydropower hydropower plant development, official declarations For a small number of countries, capacity data from
projects (including in Madagascar, Uganda and Rwanda) capacity in Europe. Outside of China, Europe (including of contracts, and equipment deals; and (4) direct previous years has been updated with new information.
commissioning with support from private and public Turkey) saw the largest increase in capacity (nearly 3 consultation with operators and industry sources. This means that those countries will see a year-on-year
sources of investment. While much more needs to be GW) of any of our regions, driven by pumped storage
It is important to note that different sources change compared to previous years’ reports, but these
done to increase hydropower in Africa, big projects facilities each just under 1 GW in capacity being
report on capacity and generation using their own increased capacity numbers are not treated as capacity
are expected to be commissioned next year in Angola commissioned in Switzerland and Portugal.
added or lost in 2022.
(Caculo Cabaça, 2 GW) and Cameroon (Nachtigal, 420 In the sections that follow, this report provides further
MW), which will help the continent in its clean energy details on these developments and some of the key
transition. areas of hydropower potential that are available across
Alongside the urgent need for new sources of low- the globe. These areas are the key to driving the clean
carbon power in Africa, the current hydropower fleet energy transition and meeting our net zero goals for
requires modernisation to maintain existing generating 2050.
capacity and enable more flexible operation to integrate
increasing amounts of wind and solar. IHA has been
supporting the African Development Bank’s (AfDB)
hydropower modernisation project, with a mapping
study looking at the modernisation needs across the
Dhaulagiri Rural Municipality , Myagdi District, Nepal

Credit: IES Team, Bizbell

Book your place now

for the 2023 World
Hydropower Congress
The 2023 World Hydropower Congress, co-hosted by the Attendees will hear from high profile speakers at
Government of the Republic of Indonesia, Indonesian plenary and parallel sessions, attend workshops on
electricity utility PLN, and the International Hydropower topics such as climate resilience and sustainability, and
Association, will take place in Bali from the 31 October network with colleagues from around the world to keep
to 2 November. up-to-date with the latest innovations in sustainable
hydropower.
Under the theme ‘Powering Sustainable Growth,’ the
Congress will focus on renewable energy as a driver Go above and beyond in showing your support for the
of industrial development for a clean and sustainable World Hydropower Congress by getting involved in
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Book now to join global leaders from the hydropower
your innovations in our exhibition zone.
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transitions.

8 2023 World Hydropower Outlook Tracking hydropower against net zero
The power sector is responsible for 40 per cent The changing face of global energy supply
of global carbon emissions, making it the single Over the last century, electric power systems have
largest contributor to global warming. To limit global relied on the stability provided by a fleet that is highly
Tracking hydropower
temperature rises to 1.5°C, it will need to rapidly dispatchable (i.e., power plants that can control and
decarbonise. In parallel, the overall level of electricity adjust their power production to demand) such as
generation is expected to more than double as coal, gas, nuclear and hydropower. As of today, these
against net zero

economies grow, and electricity replaces other fuels resources combined are responsible for almost 90
in a wide range of sectors, including the transport per cent of global electricity generation. But now this
sector. The International Energy Agency (IEA) and landscape is rapidly changing, and all the net zero
the International Renewable Energy Agency (IRENA) projections for change rely heavily on a dramatic
Hydropower’s contribution estimate that to achieve a net zero economy, global

annual electricity demand will grow to around 75,000
shift in the composition of the world’s electricity-
generating fleet. variable renewable energy sources
to net zero
TWh by 2050, almost three times today’s demand (wind and solar) will become dominant, and their total
(28,000 TWh in 2021). contribution is forecast to evolve from 10 per cent today
to a level close to 70 per cent by 2050.
The gap between planned and required hydropower
capacity for 2050
IEA models suggest that by 2030, the global
hydropower fleet will need to grow by over 420 GW. The expansion of non-dispatchable power sources
With the current pipeline, it is unlikely that this will in the world electricity mix (2021 vs 2050 IEA
exceed 230 GW, causing a gap in capacity of 190 GW. (International Energy Agency) Net-zero economy
scenario)
Even under the most optimistic assumptions the gap Source: IEA
between IEA net zero targets and the existing pipeline
will grow in the long term. Assuming that all the current 2021 2050
pipeline of projects monitored by IHA will be completed
10%
by 2050, this analysis suggests that at least an additional
737 GW of hydropower (new capacity) will need to
be identified and developed to achieve the capacity 31%
required to support the energy transition towards a net
90%
zero economy.
69%
28,272 TWh
Dispatchable sources
Credit: Drax
Non-dispatchable sources 73,185 TWh
Hydropower’s future
Wind and solar contributions will grow to 70 per cent
electricity, contributing more than 40 per cent of the
annual electricity production (approximately 22,700
Doubling of hydropower capacity will
while coal, oil and gas capacity will need to reduce at
a rate of 100 GW per year. Low-carbon dispatchable
TWh) of this group by 2050.
Both IRENA and IEA show that substantial amounts of

not happen by market forces alone.
technologies will have to step in to take over the
role of ’guardians of the grid.’ Like coal, oil and gas,
green and brownfield hydropower capacity are urgently
required to provide reliable low carbon electricity to
Governments will need to develop
mechanisms that reward flexibility
these technologies will need to guarantee reliable,
long-lasting, and affordable electricity generation for back up variable wind and solar power. To achieve a net
zero economy by 2050, IEA indicates that more than
to balance the system.
consumers.
1,300 GW of additional hydropower capacity is needed,
Hydropower is not only today’s main source of low-
reaching a total installed capacity of almost 2,700 GW.
carbon electricity but is also equipped to become the
lead provider of grid flexibility – it will be the backbone Similar conclusions are presented in the 1.5°C pathway
of reliable, safe, and decarbonised power systems. scenario produced by IRENA, where the hydropower
Net zero projections published by IEA, show how, in fleet will need to double over the next 30 years,
a decarbonised economy, hydropower is expected reaching an overall installed capacity of more than 2,900
to become the predominant source of dispatchable GW, of which almost 420 GW is pumped hydro.
Share of global electricity

production by dispatchable 1402
and / or firm energy source,
1,467
2021 vs 2050 Net Zero 4,327
Emissions (TWh)
859
Source: IEA Net zero projections
5,810 8,251
Hydropower 17,437 2,776
Hydrogen based
Other dispatchable renewables

5,762
Combustion plant
Mai Beni Assessment, Nepal
Nuclear Credit: Amina Kadyrzhanova

Hydropower’s current growth levels capacity of Norway and Mexico, but the current rate Middle East and Latin America will also play a crucial the deployment of variable renewable energies, the
Despite the significant global efforts that both public of development is well below these levels. Between role, bringing over 200 GW of new hydropower projects regional electric power systems will require substantial
and private sectors have undertaken in recent years 2016 and 2021, hydropower grew at an average rate of online respectively. amounts of flexibility to stabilise the grid and secure
to shift towards a more sustainable energy mix, our 22 GW, half the required rate. Furthermore, this pace China and the Asian continent have led the way in production at any given time. Currently, the level of
analysis shows that hydropower is not developing fast was below that recorded during the previous five years recent years, but growth slowed down when major deployment of new hydropower plants in these regions
enough to meet global targets. To reach a net zero (2011-2016), which saw an average annual capacity projects, like Three Gorges and Xiluodu, reached is well below the requirements for the 1.5°C pathway.
economy, according to the IEA net zero projections, addition of circa 34 GW. completion. Over the last five years, hydropower has The largest gap in terms of growth rate is recorded
hydropower should be growing at an average pace of Despite this trend, the hydropower sector has failed to grow fast enough in any of the macro-regions in the African continent, where huge hydropower
circa 46 GW per year, the equivalent of the combined demonstrated that it can deliver at the pace required. analysed, and this gap seems to have widened over potential will need to be unlocked to support
For instance, in 2012, about 47 GW of installed capacity time. electrification without generating new CO2 emissions
was commissioned, as well as 38 GW the following year. The challenge is even more evident in Europe and which typically result from economic development.
The risk is great, and the consequences are irreversible. North America, where, due to the ambitious targets for
Historic growth rates compared If this trend does not improve, it will cause a shortage of
required additions (GW per annum) dispatchable low-carbon power over the next decades
Source: IHA and IRENA data in the order of 700 GW, with an implied reliance on coal
and gas. The associated carbon emissions would range
50 2000
46% from 1,100 Mt to 1,800 Mt per year – comparable to
the sum of the current annual emissions of three major
economies such as Germany, France and Italy.
40 1500
IRENA provides a set of regional breakdowns of its
34%
1.5°C pathway. They indicate that most of these
30 developments are expected to take place in Asia, 1000
with over 570 GW of additional capacity required. The
22%
20 500
10
0
Asia Africa and Latin North Europe Oceania/Pacific
Middle East America America
Current fleet Total gap to 2050 targets (1.5 Deg Cap Pathway)
0
Growth 2011-2016 Growth 2016-2021
Regional existing installed capacity* and gap towards the 2050 IRENA 1.5°C pathway targets (GW)
Hydropower Other dispatchable renewables Source: IRENA 1.5°C pathway and IHA database. *The figures presented exclude pumped storage
Average annual capacity additions* actual (2011-2016 and 2016-2021, The map shows for IRENA's hydropower capacity additions needed for net zero (green
GW) vs IRENA 1.5°C pathway regional targets line) and the historic average capacity additions during 2011-2016 (dark blue) and
during 2016-2021 (light blue) for each region. All figures are in GW.
Source: IHA and IRENA data *Excluding pump-storage
5.15 28.79
3.69
1.38 0.70 1.23 1.23
North America Europe 19.86
13.34
Asia
7.24 8.09
3.49 2.78 1.23

1.17 1.23
0.02 0.05
Latin America Africa and Middle east Oceania/

Pacific
Growth Rate 2011-2016 Growth Rate 2021-2016 Required Growth Rate 2021-2050 - 1.5C cap pathway
Hydropower potential:
IHA’s analysis shows that there is more than enough and social factors in the assessment of hydropower
hydropower potential to achieve the net zero targets potential. As stated by the 2021 San José Declaration:
set by IEA and IRENA for 2050. More importantly, ‘going forward, the only acceptable hydropower
where are the opportunities?

around half of the economically feasible hydropower is sustainable hydropower.’ We need a deeper
potential remains untapped. This potential can be understanding of hydropower potential through a
achieved through four broad actions: developing new comprehensive, objective, and uniform quantification
hydropower, developing PSH, modernising existing of environmental and social factors on a global and
infrastructure, and retrofitting non-powered dams. continental scale.
Developing new hydropower Pumped Storage Hydropower (PSH) potential
Substantial potential for new hydropower development PSH is a proven and mature technology with
is present globally, but the question that arises is – tremendous potential for energy storage. Compared to
where are the most significant opportunities located? other forms of energy storage, PSH can be more cost-
The Hydropower 2050 report published by IHA in 2021 effective, especially for very large capacity storage. This
identified remaining hydropower potential at the global technology has competitive round-trip efficiency and
and regional levels. The results are shown in the table long life spans, making it ideal for providing short and
below. long duration storage.
As we march towards a net zero future, we must PSH has the potential to increase globally, and it can
recognise the critical role of economic, environmental also be developed in areas with very low conventional
Region Indicative Potential Hydropower Capacity (GW)* Installed Capacity 2022 (GW)**
East Asia and Pacific** 1100 464
South and Central Asia** 600 157
Africa 630 37
North & Central America 620 184
South America 500 179
Europe 350 202
* All estimates of hydropower potential in the table include existing capacity. These figures should not be taken literally
but instead provide an indication of regions of the world where hydropower is relatively underdeveloped.
** Note that the Installed Capacity here does not include pumped storage.

hydropower potential. The Australian National

University published the world's first atlas of greenfield
considering the need for storage to support the
integration of a high share of variable renewables
Hydropower is known as a ‘forever’ technology.
off-river PSH potential in 2021, which identified into the energy mix. A typical hydropower facility can have an operating
over half a million potential PSH sites and 23 million
GWh of storage capacity (roughly equivalent to the
• Site Identification: a systematic mapping and
assessment of existing and potential hydropower
life of more than a hundred years when maintained
world’s entire annual electricity consumption today). sites suitable for PSH is necessary to guide regularly.
Another recent study focused on the PSH potential for sustainable infrastructure development and inform
seasonal storage, including cost curves, highly valuable energy policy decisions.
information for energy planners. Their estimated world
energy storage capacity below a cost of US$50/MWh • Financial Frameworks: policymakers must construct
is 17.3 million GWh, approximately 68 per cent of the robust financial policy mechanisms that incentivise
world’s electricity consumption in 2021. PSH and enable long-term revenue visibility.
Electricity markets should reward grid stability
Similarly, the National Renewable Energy Laboratory contributions provided by PSH. PSH could also be
(NREL) estimates that the U.S. alone has the potential included in green finance initiatives.
for as much as 2,300 GW of 10-hour energy storage Age profile of installed hydropower capacity, 2022
capacity from PSH. In China, the government has set • Sustainability Assessment: rigorous sustainability
long-term targets for PSH development, with plans to evaluations using internationally recognised 100% Age, years
launch over 62 GW of pumped hydro storage by 2025 assessment tools should be integrated into
90% 90 +
and 120 GW by 2030. Even more ambitious goals have development processes.
been identified by PowerChina, with construction to be 80% 80-89
Modernising existing infrastructure
started on more than 200 PSH projects with a capacity Modernisation of ageing hydropower infrastructure
70% 70-79
of 270 GW by the 2030s. In India, the Government represents a business opportunity for the sector, while
recently underscored that the potential for pumped at the same time being a necessity to maintain output 60% 60-69
storage has been relatively untapped, with a revised and increase efficiency and flexibility.
potential of 103 GW and only 4.7 GW PSH currently 50% 50-59
Innovative technologies can be implemented to
operating.
increase the power flexibility and efficiency of 40% 40-49
To fully leverage the potential of PSH in a renewable- hydropower stations, and they can give access to new
30% 30-39
dominated energy landscape, the following policy revenue streams, thus helping to harness hydropower’s
recommendations should be considered in line with the full potential. Governments must encourage investment 20% 20-29
International Forum on Pumped Storage Hydropower in modernisation programmes, both public and private
recommendations: finance, to secure the future of hydropower and net 10% 10-19
• Comprehensive Planning: policymakers must zero.

0% 0-9
anticipate long-term clean electricity requirements, East Asia South and Africa South North and Europe
and Pacific Central Asia America Central America
The capital requirements for modernisation projects As the oldest renewable technology, hydropower faces
the challenge of an ageing fleet, with almost half of
higher costs for utilities and customers. For example,
the modernisation of the Mount Coffee Hydropower
are much less significant than those for greenfield its global capacity (630 GW) over 30 years of age, and station in Liberia provided 1 million people with a
projects and have modest or negligible environmental almost 40 per cent of the capacity (490 GW) over 40
years old, according to IHA data. By upgrading older
stable electricity supply, replacing diesel generators,
and helping bring down electricity prices in Liberia.
and social impacts. plants, a considerable increase in capacity, efficiency It is essential to consider the long-term benefits of
and power generation can be achieved. IHA has modernisation projects, not only for the environment
collaborated closely with development banks in Asia, but also for communities and the economy.
Latin America, and Africa to identify modernisation
In addition to securing the existing resources, two
potential and prioritise investment needs.
additional benefits from modernisation stand out: the
Hydropower is known as a ‘forever’ technology. A typical potential increase in generation and the enhancement
hydropower facility can have an operating life of more of flexibility. The U.S. Department of Energy estimates
than a hundred years when maintained regularly. The that the modernisation of equipment through
performance and reliability of components decrease as retrofitting at hydropower projects has the potential
the stations age, impacting output, revenue, and safety. to enhance the electricity generation capability by
Therefore, modernisation programs, from repairing and 8-10 per cent or more. According to IEA Hydropower,
replacing components to implementing innovative renewing electromechanical components can
technologies, represent a significant opportunity for boost output by up to 20 per cent, while civil works
existing hydropower infrastructure to provide benefits refurbishments, such as dam heightening or improving
such as optimised power production through improved intake facilities, can raise power by up to 50 per
efficiency or capacity additions, optimised operations cent. Digitalisation of hydropower technologies and
and maintenance (O&M), enhanced flexibility, and water operation and maintenance practices is well established
services at multipurpose hydropower sites. in many of the more mature energy markets and has
The capital requirements for modernisation projects are become a key feature of modernisation programmes.
much less significant than those for greenfield projects Specifically, the installation of advanced digital controls,
and have modest or negligible environmental and social intelligent condition monitoring systems, remotely
impacts. The low marginal cost of hydropower means operated systems, and supervisory control and data
that failing to adequately modernise hydropower assets acquisition systems are being included in projects to
can result in higher electricity prices for consumers. enable the digitalisation of existing stations' operations
In instances where the station operates significantly and control. According to a 2017 study conducted by
below its rated capacity for prolonged periods, the General Electric and IHA, if the world's then 1,225 GW
shortfall in electricity supply could be substituted by of installed capacity was digitised, it could result in an
Generator circuit breaker overhaul
more expensive thermal alternatives such as coal and increase of 42 TWh of incremental generation, and a
Bakun Hydroelectric Plant, Malaysia
Credit: Sarawak Energy gas, leading to increased greenhouse gas emissions and reduction of US$5 billion in operation costs per year.
XFLEX HYDRO programme in France, where during the XFLEX HYDRO project, • providing long term visibility of revenues including Overall, the untapped potential of non-powered dams
Flexibility is another key benefit of hydropower hydraulic short circuits were studied and successfully through long term contracts, that will further for the generation of hydropower presents a significant
modernisation achieved through increasing the unit implemented using automation techniques for incentivise investment. opportunity for renewable energy development,
regulating margin, improving electro-mechanical advanced control and efficiency. Thanks to the hydraulic • Allocate part of the revenues from hydropower
and further exploration and investment in this area
performance, increasing storage capacity, battery short circuit, the plant is now capable of simultaneously projects to community development fostering a
could lead to a substantial increase in clean energy
hybridisation, and interconnecting hydropower plants pumping water into the reservoir, storing the surplus more inclusive and sustainable development path.
production. The realisation of hydropower potential
with other energy sources such as wind and solar. The electricity injected in the grid by variable renewable from non-powered dams calls for a concerted effort to
EU’s XFLEX HYDRO programme provides an illustrative energies, and providing grid regulating services. Retrofitting non-powered dams foster coordination among diverse stakeholders. A focus
example of how modernisation programmes can deliver Despite the large number of dams and reservoirs on the development of creative technical or market-
Governments can encourage modernisation by: worldwide, only a small percentage of them are
much more than the maintenance of existing capacity, based solutions that align with principles of circularity
but also increased flexibility and better participation • ensuring regulatory and licensing regimes are fit for currently used for hydropower. According to the and sustainability is paramount.
in ancillary and short-term spot markets. The project purpose and do not disincentivise investment by International Commission on Large Dams (ICOLD)
The realisation of hydropower potential from non-
studies a range of advanced software solutions and station owners or operators; database, out of nearly 59,000 large dams (higher
powered dams calls for a series of strategic policy
technological upgrades, including hydraulic short than 15 metres) and reservoirs (more than 3 million
• ensuring that electricity markets remunerate the recommendations:
circuit, battery hybridisation and variable speed cubic metres), only 21 per cent of single purpose and
flexibility and the dispatchability that modernised
turbines, which are applicable to any existing asset. An 16 per cent of multipurpose reservoirs are used for • Support research and development of innovative
hydropower facilities can excel in providing, to
example is the Grand'Maison pumped storage plant hydropower. The primary use for these structures is technologies which could help to lower the costs of
safeguard grid stability;
irrigation, leaving vast potential for non-powered retrofitting non-powered dams.
dams (NPDs) to be transformed into powered dams for • Improve the existing processes to streamline
hydropower generation. hydropower licensing, relicensing, and license
Upgrading existing non-powered dams presents a surrender, making them more efficient and
promising opportunity to augment global hydropower responsive to the needs of retrofitting non-powered
capacity, with estimates indicating a potential dams.
increase of 60 GW. In the United States alone, there • Increase financial support for dam rehabilitation
are approximately 80,000 dams, with only 3 per cent and retrofitting projects. This could be facilitated
1 Alqueva (Portugal)
2 Alto Lindoso (Portugal) currently generating electricity. A report by the United through greater budget allocations, tax incentives,
3 Caniçada (Spain) States Department of Energy Wind and Water Program or low-interest loans specifically designed for these
4 Frades 2 (Portugal) revealed that 54,391 NPDs across the country have the initiatives.
5 Grand'Maison (France) potential to be transformed into powered dams. This
7
6 Z'Mutt (Switzerland) has the potential to add up to 12 GW of new renewable
7 Vogelgrun (France) 6
2 capacity, which is equivalent to increasing the size of
3 4 5 the existing conventional hydropower fleet by 15 per
cent. Importantly, this 12 GW of hydropower has the
capacity to power nearly 4.8 million U.S. homes on an
1 annual basis.
What is currently in the new

The hydropower pipeline is growing and over the last Challenge to the pipeline
two years the total capacity of the projects included Hydropower projects, like other large infrastructure
had an increase of 50 GW. 77 GW of new projects projects, can face many challenges across their lifecycle.
development pipeline? were added to the announced (+20 per cent) and We see issues around long lead times for projects
pending approval categories (+40 per cent), showing across the world. Some of the main issues include
a positive trend that hopefully will continue over the expensive feasibility studies and upfront costs, a
next few years. Conversely, the capacity currently under general concern for bankability, and issues around local
construction has seen a contraction, with a decrease of opposition. These challenges can lead to delays or even
25 GW compared to two years ago. cancellation, with direct impacts on national and local
decarbonisation efforts.
Data collected by IHA shows that the current global
pipeline represents over 590 GW of new hydropower In recent years, there has been a clear improvement
projects. These are classified in four categories in cost and schedule accuracy. Research published in
2019 found that for projects developed after 2000, the
representing the general project status:
average cost overrun was 33 per cent and schedule
• Under Construction and Regulator Approved overrun was 18 per cent, compared with 46 per cent
are projects that have reached construction phase and 37 per cent respectively for pre-2000 projects.
or that have received approvals from the local
Nonetheless, delays can still have a large impact.
authorities and are waiting to start construction.
Governments can miss out on the economic gains
• Pending Regulator Approval includes stations from projects and may need to defer to using other
that have conducted feasibility studies and have electricity sources to meet their needs. In Uganda,
submitted documentation to be approved by energy project delays led to an estimated impact of 1 per
regulators. cent loss of potential GDP for each year that one large
• Announced includes proposed stations at the hydropower project was delayed. Similarly, Laos, was
deprived of 3-7 per cent of gross GDP growth that was
earliest stage of development. This is also the
expected to be generated by a hydropower project.
category with the highest level of uncertainty.
Individuals in communities may be left waiting for
131 GW or 22 per cent of the projects included in the employment, which can lead to availability issues if
pipeline are currently under construction and 27 per they were to find work elsewhere when the project is
cent of the total, representing a capacity of 163 GW, ready to begin. The wider community will miss out on
have received approvals from the local authorities. access to clean and affordable electricity and lose the
Hypothetically, if these were all completed over the next potential benefit of flood control and mitigation, while
10 years, it would imply an average growth rate in the experiencing prolonged pollution from construction.
sector of ~30 GW per annum, which is not enough to be Investors may lose confidence in projects and look to
on-track with the net zero pathways. other opportunities.
Governments have sought to identify the key reasons to develop, the ongoing risk they will not reach Rotor no.9, Baihetan hydropower station, China
Credit: CTG
for these project overruns. For example, the Indian completion.
Government published guidelines in 2020 which The good news for PSH is that its contribution to the
noted some of the main reasons for time overrun in pipeline is rapidly increasing. Open and closed loop
hydropower included “delay in award of works, land pump storage projects amount to 214 GW, an increase
acquisition, natural calamities, rehabilitation and of almost 90 GW compared with two years ago. The
resettlement”. IHA analysis shows that many projects global pumped storage capacity over the next two
have received their initial relevant regulatory approvals decades is expected to double in capacity, a pleasing
(such as environmental permitting) but are yet to recognition of the crucial role that is played by these
proceed to construction. If construction does not begin types of facilities, providing flexibility as well as long and
within the timeframe established by the regulatory short duration storage capacity.
body, the project managers may need to restart the
permitting process and, in some cases, the entire
opportunity for development could be lost.
This helps to illustrate how challenging and complex
the navigation of the permitting phase can be for
hydropower projects and despite commitments
Current global hydropower projects pipeline by project status

Source: IHA database and IHA Hydropower 2050 report
598 GW
of hydropower
projects in
GW
pipeline
Announced 107 GW
197 GW
Planned
(Pending approval)
163 GW 131 GW
Planned Under
(Regulator approved) construction

600 Evolution of the global hydropower projects Evolution of the global hydropower projects analysis suggests that the long period from project
500 pipeline by type of plant pipeline by region and type of plant announcement to construction is usually due to lack
Source: IHA database. Pumped storage includes both closed East Asia and the Pacific has the largest number of financial partnership and/or funding availability.
400 and open loop pump storage hydropower plants of projects in the pipeline as well as the largest In some cases, projects have received international
300 proportion of projects currently noted as Under financial support but have not met the requirements
Construction, with the vast majority in China. to use the funds due to lack of local community buy-in
200
Interestingly, almost 32 per cent of these are pumped or because of the slow procurement of consultancy
100 services. Considering Africa’s high potential for
storage stations. This number is strongly boosted
0 by China, which has 68 GW of pumped storage hydropower development and a need to rapidly
2021 2023 increase electricity to meet demand, accelerating access
projects alone. This follows the immense target that
Pumped storage Storage China has set itself to rapidly expand its hydropower to financing and sustainable construction is crucial for
fleet to support its equally rapid solar and wind the region.
Run-of-river Non-specified
deployment to phase down coal-fired generation. Europe has fewer hydropower projects in the pipeline
Hydropower and PSH is considered a core part of than other regions, reflecting the fact its fleet is one of
the country’s ongoing five-year plan. Australia, the oldest and most developed. Of the future projects
Indonesia, Laos, Papua New Guinea could also see in the pipeline, over 90 per cent are pumped storage
Projects that have been announced, have sought and achieved regulatory approval, and are under substantial increases in capacity with significant projects. The most common challenge shared by
construction by region projects recently announced and under construction. stakeholders is the lack of policy to incentivise upfront
350 Africa’s pipeline has 120 GW in development in the investment. As governments in Europe rapidly increase
250
region, with the largest proportion of projects having
Considering Africa’s high

300
received regulatory approval, but considerably less
200
capacity under construction. Due to the urgent
250
need to electrify the continent, most projects in the potential for hydropower
Project numbers
150 200
pipeline are conventional hydropower. Around 84
GW (excluding closed loop pumped storage) are development and a
GW
100
150 reported to be at an advanced development stage need to rapidly increase
(approved from the regulator or under construction),
100 suggesting that Africa could substantially accelerate electricity to meet
50
50
its development process over the next decade,
reaching a level close to 8 GW per year, in line with
demand, accelerating
0
IRENA’s 1.5°C Pathway projections. Even excluding access to financing and
Africa Central and
Southern Asia
East Asia
and Pacific
Europe North and
Central America
South America the Grand Inga project currently in the pipeline,
which alone accounts for 39 GW, African hydropower
sustainable construction
Announced Planned - pending approval Planned - regulator approval Under construction Project numbers is expected to experience accelerated growth. Initial is crucial for the region
wind and solar deployments over the next decade, this become an increasingly important element of the grid. Hydropower development based on the current global hydropower projects
will see urgent requirements for additional storage South America has a large volume of smaller pipeline and gap to the IEA Net Zero Emissions scenario projections (GW)
capacity to avoid curtailment and balance the electric Source: IHA database and IEA NZE scenario projections
hydropower projects that have been announced which
power systems. Revisions to the EU Electricity Market to are typically run-of-river or small-scale reservoir storage. 3000
support flexibility may see a shift towards dispatchable Many of these projects are ready but awaiting financial
hydropower projects. support. 2500
North and Central America has the largest proportion South and Central Asia has many projects in the
of projects that have been announced and are awaiting pipeline especially in India, Pakistan, Nepal, and 2000
regulatory approval. It is theorised that this is because Bhutan, whose governments have all recently made
regulatory processes take considerably more time in announcements to prioritise hydropower. The pipeline 1500
this region compared to others. Like Europe, pumped data indicates a large volume of small hydropower
storage projects represent over 90 per cent of future projects have been planned and are awaiting
projects. With governments prioritising the immense 1000
appropriate permissions.
roll-out of variable renewable energy, storage will
500
Current regional hydropower projects pipeline by project type* (GW)

0
Source: IHA database. *Pump storage includes both close and open loop pump hydropower plants 2021 2030 2040 2050
Existing fleet Pipeline Gap to IEA NZE

Asia
Africa It is by no means certain that all the projects in the hydropower fleet is expected to grow by over 420 GW.
pipeline will reach final completion, as there are several While looking at the current pipeline, it is unlikely that
barriers to overcome. Local contexts may change, and the actual increase will exceed 230 GW, causing a gap of
North America
some of the proposed stations may not be approved 190 GW. Even under the most optimistic assumptions,
by regulators. Nonetheless, this pipeline is useful to the gap between the IEA net zero models and the
South America
understand the scale of the challenge awaiting the existing pipeline seems to grow bigger in the long
hydropower sector, and society as a whole, to reach a term, reaching over 430 GW by 2040. Finally, even if
Europe net zero economy. all the current pipeline of projects monitored by IHA
are completed by 2050, this analysis suggests that at
Are there enough projects in the pipeline to meet
least additional 727 GW of hydropower new capacity
Oceania/Pacific net zero targets?
will need to be identified and developed to achieve
It is key to understand that the existing pipeline alone is
0 50 100 150 200 250 300 350 the capacity required to support the energy transition
not sufficient to meet the challenging targets identified
towards a net zero economy.
Pumped storage Storage Run-of-river Non-specified by IEA. According to IEA projections by 2030, the global

Recommendations How can we unlock

Doubling the pace of hydropower development is essential for the energy transition, yet IHA analysis shows we are not on track. quicker deployment?
It is urgent for today’s energy policies to focus on three key aspects associated with hydropower development.
IHA will be conducting an extensive survey
1 2 3
Incentivise sustainable hydropower of the sector over summer 2023 to identify
Accelerate the development of renewables Embed hydropower sustainability
development through market mechanisms the key barriers and actions that can unlock
through streamlined permitting and practices in government regulation.
that reward flexibility. To meet the objectives licensing. Hydropower planning and Accelerating development does not mean quicker, more cost-effective deployment. The
of the Paris Agreement and the UN Sustainable approval processes typically take more than five cutting corners. Application of the Hydropower survey will be launched in June 2023.
Development Goals, IEA estimates that investment years before a project can even begin construction. Sustainability Standard, built and governed through
in hydropower needs to double to US$100bn a year. Meanwhile, the default option is often to fall multi-stakeholder consensus, should be integrated
This cannot happen without appropriate market back on fossil fuels. The massive deployment into regulatory frameworks to maximise the benefits
frameworks to incentivise new investment. of renewables needed to meet global climate of projects and mitigate any negative impacts.
goals through sustainable development should
be accelerated by streamlining these processes
wherever possible.
In addition, project risk mitigation strategies can be utilised to reduce the time delay and possibility of cancellation. Some measures include applying the FutureDams Risk
Framework or using Hydropower How-to-Guides to follow industry best practices to reduce risk and increase stakeholder input.
Cruachan turbine hall, Scotland

Credit: Drax Hydro

21 2023 World Hydropower Outlook Priority policy themes
The carbon calculator

for reservoirs
The G-res Tool is a user-friendly and web-based tool to G-res Tool was developed using a conceptual framework
estimate and report the net greenhouse gas emissions created with scientists from the University of Quebec
(GHG) of a reservoir without having to go to the field at Montreal (UQAM), the Norwegian Foundation for
to take measurements. Reporting results gained using Scientific and Industrial Research (SINTEF) and the
the G-res Tool give investors, regulators and local Natural Resources Institute of Finland (LUKE), with
communities greater confidence on a reservoir’s climate assistance from the World Bank.
profile and carbon footprint.
The G-res team runs quarterly training sessions to teach
The tool was developed over the course of a decade individuals from all backgrounds on how to use the
through a multi-stakeholder research project led by tool and accurately interpret results. The team also can
the International Hydropower Association and the provide full assessments and validate G-res Tool results
UNESCO Chair in Global Environmental Change. The for reliable and transparent reporting.
Find out more at g-res.hydropower.org

Priority policy themes

The past year has been marked with headlines rains in 2022 led to above average hydropower
accompanied by stark images of extreme drought generation, in contrast to the low water year of 2021/22.
conditions in many parts of the world. With the In April, the first month of the rainy period, generation
spotlight on the rare absence or reduction of electricity was 40 per cent higher in 2022 than in 2021. This trend
Climate resilience generated by hydropower, these regions noticed the

value it had silently been providing for years.
continued throughout the six months of the rainy
season (see Figure 1).
and drought
It is worthwhile to look past the headlines and Drought rarely affects all of a large region at the same
remember that hydropower facilities can provide time. Although images of ghost villages emerging
other services through its water control infrastructure from reservoirs in Spain in the summer of 2022 were
and water storage capabilities, which play a crucial certainly striking, other parts of Europe (Austria, Finland
mitigating role in an era of increasing climate extremes. and Greece) experienced higher than average reservoir
As noted by the World Bank in its urgent appeal for levels. Equally, although the western U.S. saw its second
integrated water storage solutions, water storage worse year for drought this century, the region is
provides three major services: improving the availability vast and comprises several climatic sub-regions, with
of water; reducing the impacts of floods; and regulating drought rarely hitting all sub-regions at the same time.
water flows to support energy, transportation, and The Pacific Northwest had above-average surface
other sectors. In times of drought, water can be water levels in 2021/22, and hydropower plants there
withheld to ensure a steady supply for energy, irrigation, balanced the lower output from plants in California. In
and municipal water supply. In times of extreme the end, overall hydropower in the region was 84 per
precipitation, water control infrastructure can reduce cent of its average expected generation.
the impact of floodwaters. To explore the long-term trend, IHA examined literature
As the climate gets more volatile, we will need more, not on how climate change affects hydropower around
less, water infrastructure. Hydropower facilities provide the globe and concluded that there is a great diversity,
this infrastructure with the bonus of much-needed low- with positive, negative, and/or inconsequential effects.
carbon electricity. Box 1 illustrates one such example in For example, in the western Himalayas, increased
which hydropower facilities provide a steady supply of flowrates in the winter due to increased glacier melt and
water for electricity and other uses in Australia. precipitation are likely to lead to higher hydropower
generation. In contrast, the increased temperature
Additionally, hydropower’s ability to generate reliable
and lower levels of precipitation in Central and South
electricity over the long term as well as the short term
America are likely to reduce the amount of hydropower
should not be ignored. Natural year on year variations
generation.
in rainfall, wind speeds and cloud cover can all have
an effect on generation from the major sources of In conclusion, “climate change is water change”. While
Baihetan hydropower station, China renewable electricity generation. In India, monsoon there is no doubt that the variability in precipitation
Credit: CTG

patterns has a direct impact on hydropower generation Guide developed by IHA with financial and technical Box 1
and infrastructure, the answer should not be less support from the European Bank for Reconstruction
hydropower. The story is more nuanced than what is and Development, the World Bank Group and its Hydropower mitigating the effects of drought
captured in headlines. Korea Green Growth Trust Fund, can help hydropower
practitioners to manage the risks of climate change by
in Tasmania
What is clear is that hydropower operators must adapt
providing good international industry practice. Hydro Tasmania operates several installations that include a provision for water for irrigation and other
and develop new strategies to manage uncertainty
commercial uses. It considers the likely water requirements of these uses when periodically reviewing and
around future water availability. The Climate Resilience
updating its water release and storage strategy.
The system worked successfully during extended dry periods in 2006/08 and again in 2015/16. Irrigation
schemes serviced by water drawn from hydro storages were able to draw their full allocations; meanwhile,
other irrigation schemes in Tasmania experienced restrictions on water availability. Town water supplies and
Figure 1: Hydropower generation in India during the monsoon months of 2022 as a downstream environmental flows from hydropower infrastructure were also maintained. In addition, the inter-
percentage of generation of the same month in 2021. Results greater than 100 per cent annual storage capacity of the larger reservoirs means that there is an increase in energy security during times
represent increased generation from 2022 versus 2021. Generation in April 2022 was of drought, as water from wetter years can be stored and used to generate electricity (as well as provide other
almost 40 per cent higher than in April 2021 services such as irrigation) during drier years.
Climate change is expected to result in lower precipitation across some of the Tasmanian agricultural districts
140
which may lead to increased irrigation water demand. Hydro Tasmania is working with government and
irrigation entities to determine a pathway that balances future electricity and water supply requirements.
120 Source: Hydropower providing flood control and drought management services under changing climate scenarios: Case
studies
100
80
%
60
40
20
0
April May June July Aug Sept

Floating solar and hybrids

Hybrid floating solar has huge potential. Hybrid systems with 1,342 MW deployed or under construction
floating photovoltaics (FPV) hydropower systems have followed by Africa (600 MW), Europe (26 MW) and Latin
extraordinary capacity to contribute to meeting global America (381.8 MW). The map on the next page tracks
energy demands and conserving water without taking the installed and under development hybrid systems.
up space on land. Globally, it is estimated that there is So why is it not more widely adopted?
the potential for between 3 and 7.6 TW of electricity FPV is an emerging technology and as larger projects
generating capacity from FPV on 400,000 km2 of have been commissioned (250 MW or more), risks have
manmade hydropower reservoirs. In the past decade, become apparent that may delay future deployment.
floating solar has grown rapidly in capacity, from 70 MW FPV has primarily been installed on shallow ponds,
in 2015 to 1,300 MW in 2020. quarry lakes and industrial water as opposed to large
The rise of FPV is among the latest trends in solar panel dam reservoirs. FPV built on large dam reservoirs may
expansion in recent years. Installing FPV on existing be exposed to strong winds and higher and more
hydropower reservoirs offers the unique benefit of frequent waves.
utilising hydropower’s existing grid connections and Hydropower reservoirs are also subject to greater
providing complementary energy production with variations in water levels, requiring a specific design
solar energy available during the day and hydropower to maintain tension in the mooring cables. This would
available when the sun goes down. include fewer and deeper anchors, redundancy of
The complementary services don’t stop there. When mooring lines, and installation of wave attenuators.
located on an existing hydropower reservoir, floating Regular monitoring and ease of servicing are crucial to
solar panels do not take up land space, and the panels maintaining FPVs.
offer shade to the body of water. This reduces water For those reasons the upfront cost of FPV can be higher
evaporation from reservoirs which can be useful in than that for ground-mounted PV. However, in the long
areas that are susceptible to droughts, as this can term there may be savings. Water can cool solar panels
significantly prevent shortages. A rate as high as 60 per so they will not be exposed to similar levels of heating
cent evaporation reduction has been recorded in some as on the ground, thus meaning greater power and less
instances. In one study, FPV covering close to 3 per cent maintenance. In addition, there are usually lower costs
of an existing hydropower basin surface resulted in the of land acquisition.
facility increasing generation by nearly 35 per cent.
The deployment of this buoyant technology that
combines hydropower and FPV technologies has
increased over the past five years, but its development
remains at an early stage.Asia-Pacific is the largest
Floating solar hybrid, Alqeuva, Portugal and fastest growing market of hydropower hybrid
Credit: EDP

Floating Solar around the world Recommendations

Governments wanting to enable FPV should prioritise
the following areas:
Completed
• Promote research to further understand the
Portugal Portugal France Switzerland Myanmar environmental impacts of FPV facilities.
In progress <200 KW
0.28 MW 5 MW 20 MW 0.47 MW
• Develop standards and regulatory guidelines to
Planned manage the risks in installation.
• Promote a better regulatory and policy environment
to facilitate project development.
Laos
240 MW
Thailand
24 MW
Brazil
0.63 MW
Thailand
45 MW
Brazil Vietnam
30 MW 47.5 MW
Brazil Brazil Ghana Uganda Pakistan India India Indonesia Malaysia

350 MW 1.2 MW up to 50 MW 600 MW 150 MW 600 MW 40 MW 145 MW 50 MW
The Hydropower Sustainability Standard:

Unlocking the full potential of hydropower
Hydropower is a powerhouse when it comes to Here's a closer look at how you can work with the How to get a hydropower project certified: A Standard backed by the best:
meeting our energy needs in the transition to a Standard: 1. Assess your project – by hiring an Accredited • Sustainability initiative RE100 endorses the
low-carbon economy, but to ensure it delivers net • Developers can demonstrate their commitment to Assessor to conduct a third-party assessment. Standard as a recommended certification system
benefits to people, the environment, and the economy sustainability by undergoing an assessment and 2. Publish the report – and address public comments for sustainable hydropower.
it must be developed and operated sustainably and seeking certification. during a consultation period. • In its ESG Risk Framework, re/insurance company
responsibly. Fortunately, systems are in place to harness • Governments can incorporate the Standard in Swiss Re, encourages companies to adhere to the
hydropower’s full potential for good, while safeguarding 3. Apply for certification – and get the label.
policy and regulations to secure a responsible HSS to demonstrate sustainability performance and
our natural resources for future generations. sector at the national level. 4. Showcase your project – and demonstrate your attract investment.
The Hydropower Sustainability Standard (HSS) launched commitment to sustainability.
• Financiers can embed the Standard in their funding • The Hydropower Sustainability Standard is aligned
at the 2021 World Hydropower Congress, is the first models to reduce investment risks. with the safeguards of key lenders, such as the
global certification system of its kind in the renewables International Finance Corporation (IFC) the World
sector. Governed by the Hydropower Sustainability • Manufacturers can pledge to supply only
Bank and CBI.
Council, a multi-stakeholder body, the Standard hydropower projects that are certified by the
defines globally accepted Environmental, Social and Hydropower Sustainability Standard. • WWF recommends that insurers require systems
Governance (ESG) good practice requirements for like the Standard to be applied by projects,
• Civil society can join the Hydropower Sustainability
hydropower. It covers 12 topics and is aligned with according to their Insurer’s Guide to Hydropower.
Council and shape the future of the HSS and
international financing institutions frameworks, green hydropower.
bonds carbon credits, and private investor safeguards.
•
•
Case study: The Sebzor hydropower project –

the world’s first project certified using the Hydropower Sustainability Standard
The Sebzor hydropower project, an 11 MW hydropower project owned by Pamir Energy in Tajikistan, was the world's first hydropower project to be certified
against the Hydropower Sustainability Standard. Pamir Energy worked closely with a team of independent accredited assessors for a period of two years to
identify their sustainability gaps and implement a plan to address them. Pamir Energy earned certification against the Standard in March 2023 (preparation
stage) and has set the bar for the industry to follow. Sebzor’s certification comes as the industry faces rising pressure to substantiate sustainability claims,
International Hydropower Association making a robust and credible certification system like the Hydropower Sustainability Standard more important than ever. hydropower.org
27 2023 World Hydropower Outlook Global trends
Equality
If hydropower is to fulfil its crucial role in the transition
to low-carbon energy systems, the sector must be able
to draw upon the broadest possible pool of talent.
in the
The hydropower industry, in common with many
others in the energy sector, has traditionally been male
dominated. To gain insight into why this is, the World
Hydropower Bank’s Energy Sector Management Assistance Program

(ESMAP) commissioned IHA and the Global Women’s
Network for the Energy Transition to report on women’s
sector employment across the sector and provide concrete

recommendations.
Throughout 2022, the team met with many
stakeholders and raised awareness about the gender
gaps and barriers that inhibit women’s inclusion in
the sector. The recommendations that came out of
this initiative include solutions that encourage more
women to study science, technology, engineering, and
mathematics (STEM), enacting policies to close gender
gaps, and providing mentoring and role models for
women.
Closing gender gaps in the hydropower sector requires
the efforts of many stakeholders within and beyond
hydropower companies, including industry associations,
NGOs, academia and governments. IHA is working
to improve the perception about hydropower, which
can only help the sector become more attractive to a
generation that actively wants to contribute to solutions
to limit global warming.
Hydropower Cahora Bassa, an Accredited Assessor and the HS

Secretariat

Global trends Baihetan

China
16,000 MW
Fengning
China
1,500 MW
Canada Portugal Switzerland Turkey Pakistan Meizhou Wuhua

China
1,012 MW 998 MW 900 MW 558 MW 720 MW 1,200 MW
16,000
Jinzhai
China
1,200 MW
Changlongshan
China
1050 MW
Nant-de-Drance
Switzerland
900 MW Baihetan
China
Huanggou
China
900 MW
Gouvaes 1,500 1,200 1,200

Portugal
880 MW
Yangjiang Fengning Meizhou Wuhua Jinzhai

China China China China
800 MW
Karot
Pakistan
720MW 1,050 900 900
Changlongshan Nant-de-Drance Huanggou

China Switzerland China
880 800 720
Gouvaes Yangjiang Karot

Portugal China Pakistan
China
Colombia Chile Ethiopia Laos
23,811 MW
618 MW 477 MW 750 MW 1,100 MW
Projects completed
Top 10 countries by new installed capacity in 2022 (MW) in 2022 (MW)
Where was capacity added in 2022 Ranking Country/Territory Capacity added (MW)
1 China 23,811
2 Laos 1,100
3 Canada 1,012
4 Portugal 998
5 Switzerland 900
6 Ethiopia 750
7 Pakistan 720
8 Colombia 618
9 Turkey 558
10 Chile 477
11 Guinea 450
12 Zambia 450
13 India 434
14 Iran 356
15 Brazil 332
16 Nepal 174
17 Norway 163
18 Russia 145
19 Mali 140
20 USA 96
21 Austria 89
22 Ecuador 84
23 Kyrgyzstan 60
24 Tajikistan 40
25 Panama 34
26 Viet Nam 33
27 Madagascar 28
28 Uganda 22
29 Burundi 15
30 Argentina 14
31 Rwanda 6
32 Azerbaijan 5
33 Italy 4
34 Iraq 3
Key 35 Sri Lanka 2
No new additions 199 MW and below 200 MW to 1,999 MW 2,000 MW to 9,999 MW 10,000 MW and over
Hydropower capacity by region in 2022

Hydropower generation
by region in 2022 (TWh)
South and
North and Central Asia
Central America
1,142 MW Europe
2,712 MW 164 GW
206 GW New hydropower
258 GW New hydropower Hydropower
Hydropower installed capacity
Hydropower installed capacity capacity
capacity capacity
1,940 MW 1,714
New hydropower
installed capacity
TWh 723
TWh
East Asia North

and Pacific America
24,944 MW
New hydropower
installed capacity
712 569
TWh TWh
South Europe
America
East Asia
and Pacific
548 GW 150
South
Hydropower
capacity 539 TWh
America
1,525 MW TWh
177 GW New hydropower
40 GW 1,860 MW
capacity
Hydropower Africa New hydropower
capacity installed capacity South and Africa
Central Asia

Hydropower installed capacity growth
Hydropower
Fengning
China
1500
1,500
1334 GW 1360 GW 1397 GW Hydropower Brazil 110 United States 102

1313 GW
installed
Meizhou Wuhua
China
1200 1,200
1296 GW
installed Canada 83
capacity Jinzhai
China
1200
capacity
growth,
Changlongshan
China
1050
9,000
2022
2018-2022
Huanggou
China
900
600
(GW) of top 20 hydropower Russia 56
Yangjiang
producers and the rest of the
China world, including pumped
800
storage (2022)
Pakistan
Karot 300
720
Kafue Gorge
India 52
Zambia
750
0
Yimeng 2018 2019 2020 2021 2022
China
600 North and Central America South America Europe Africa South and Central Asia East Asia and Pacific
Fujian zhou ning Japan 50
1,397
China
600
GW Norway 34
total hydropower
installed capacity
in 2022
Turkey 32
France 26
China 415 Italy 23

Spain 20
Switzerland 18
Viet Nam 17
Venezuela 17
Sweden 16
Austria 15
Mexico 13
Colombia 13
Kaplan Manufacture
Credit: Voith Rest of the world 275 Iran 13
32 2023 World Hydropower Outlook Regions in focus
Europe Generation by
hydropower
569 TWh
Total installed
capacity*
258 GW
Capacity added in 2022*
2,712 MW
Pumped storage Pumped storage

installed capacity capacity added in 2022
56 GW 1,780 MW
Europe's journey towards a renewable energy future is significantly powered by its hydropower sector. The *Including pumped storage
potential lies not only in making the most of its geographical resources but also in modernising existing
facilities, pioneering innovative small-scale and run-of-river projects, and advancing pumped storage for grid
stability.
The success of this journey is contingent on supportive policy frameworks that incentivise investment in
hydropower. As the intermittent share of Europe’s power mix increases, hydropower’s role as a flexibility
provider supporting other renewable growth becomes ever more critical. To ensure grid stability, it is essential
that electricity markets renumerate the ancillary services flexibility and the dispatchability that modernised
hydropower facilities can provide.
With this potential in mind, 2022 was an exciting year for hydropower development in Europe. Notable projects
in Switzerland (Nant-de-Drance), Portugal (Tâmega) and Turkey (Ysufeli Dam), contributed to an overall added
capacity of 2,712 MW of hydropower including 1,780 MW of PSH.
The year also saw investment in small hydro with Edison’s Palestro programme in Italy, a crowdfunded project
that involved the local community. In Norway, 25 small hydropower plants were commissioned in 2022 for a
total capacity of 163 MW and expected annual production of 530 GWh.
In Austria, the Gemeinschaftskraftwerk Inn power plant has become a milestone on ways to achieve the goals of
the European and regional energy strategies. It is the largest newly built run-of-river power station in the Alpine
region and supports the integration of wind and solar.
We also see some early signs of positive policy development on a national level for PSH. As contributions by
wind and solar continue to grow, national authorities are more focused on their PSH potential with policy and
regulatory developments in the UK, France and Poland.
Foyers Hydro Power Station, located on
the shores of Loch Ness, Scotland
Credit: SSE RENEWABLES

Europe
This development comes on the back of some of the worst droughts Europe has experienced and the energy
crisis, brought on by the war in Ukraine. Regional electricity prices increased to levels that in certain occasions
were 10 times higher than those recorded in 2020. This has resulted in lengthy discussions across Europe about
price volatility and security of supply and the EU sought ways to optimise the electricity market design to tackle
price volatility, further accelerate investments in renewables, and enhance the flexibility and resilience of the
power system. This included the REPowerEU plan of May 2022 which worked to diversify energy supplies and
reduce dependence on foreign fossil fuels, make energy savings, and accelerate the rollout of renewables.
As part of this plan the EU increased its 2030 renewable energy consumption targets to 45 per cent and
introduced a revenue cap on inframarginal electricity generators whenever wholesale electricity prices exceed
€180/MWh. The drought experienced during the latter half of 2022 led to reduced hydropower production,
particularly in southern Europe, (~15 per cent); however, hydropower continued to play an important role
throughout the continent, including providing water to agriculture, and responding to increases in unmet
electricity demand due to a reduction in supply from nuclear power.
The EU is seeking ways to optimise the electricity market design to tackle price volatility, further accelerate
investments in renewables, and enhance the flexibility and resilience of the power system.
The EU Commission launched a research programme in 2022, ETIP Hydropower, whose goal is to provide
consensus-based strategic advice to the European Commission covering analysis of market opportunities,
research & development funding needs, biodiversity protection and ecological continuity. This project will
ensure that the voice of the sector will be heard and represented at the European level.
Årlifoss hydropower project, Norway

Credit: ANDRITZ

Europe latest developments

Austria
The Gemeinschaftskraftwerk Inn power plant
was created as a joint project between the Swiss
municipality of Valsot and the Austrian municipality
of Prutz. The dam offers 89 MW of installed capacity Ireland
located on the river Inn and generates almost 440 GWh/ EU Member States have given the green light to invest
yr of electricity while supporting the integration of wind €602m of EU funds in eight cross-border energy
and solar. It is the largest newly built run-of-river power infrastructure projects. In Ireland, the Silvermines
station in the Alpine region and cost €600m. Financing hydropower plant will receive €4.3m for researching and
included contributions from the European Investment setting up a pumped storage facility at a historic mining
Bank (€150m) and KfW IPEX-Bank (€90m). site that will help reduce price volatility, contribute to
market stabilisation and increase the flexibility resource
France
of the island’s electricity system.
The French government has recently carried out an
extensive consultation to support PSH projects. In Norway
November 2022, one of the Pelton runners of the 25 small hydropower plants were commissioned during
Grand’Maison power plant was replaced, the third out 2022 for a total capacity of 163 MW and expected
of four to be replaced. The new runners have been annual production of 530 GWh. The two most significant
upgraded from 156 MW to 170 MW, providing around 9 planned plants are Smibelg (33 MW) and Tokajjelet (27
per cent more power generating capacity. MW).
Italy Poland
Built on an existing water barrage created to regulate In March 2023, the Polish Government introduced a
the water flow in the rice fields of Northern Italy at a new law to make it easier for PSH development, as they
cost of €10m, the Palestro project has been developed recognised there were barriers making investment
by Edison using a crowdfunding programme involving harder. The new law allows PSH to be integrated into
local communities, a first for Italy. With an installed decisions across multiple permitting authorities, and
capacity of 3.6 MW on the Sesia river; and generation to make PSH a ‘public purpose’ investment. Supported
of 13.5 GWh. This is an interesting example of how by the new streamlined authorisation process in
retrofitting non-powered dams can create new sources Poland, the Polish utility PGE and the National Fund for Credit: Natel Energy
of renewable electricity with strong community buy-in. Environmental Protection and Water Management are
cooperating on the construction of a US$1.14bn project

offering 750 MW at the Mloty pumped storage power
plant in a drive to support the national grid's resilience the two countries would have 420 MW of installed
and reliability. capacity each.
Portugal Switzerland
Construction continues to complete the Alto Tâmega In Switzerland, the recently commissioned Nant de
power plant, which is part of the Tâmega Giga Battery Drance (pumped storage) owned by Alpiq, provides
project. The reservoir filling operations are expected in a total of 900 MW installed capacity. It has six Francis
October 2023. This is the last stage prior to completion pump turbines with variable speed technology and 20
expected in mid-2024 of the Tâmega Giga Battery GWh storage (equivalent to 400,000 car batteries) with
project. a total cost of circa US$2bn. Unlike many of the plants
The project includes the construction of three power that preceded it, Nant-de-Drance uses variable speed
plants: Daivões, Gouvães and Alto Tâmega with a pump-turbines. It is one of the most flexible assets in
total installed capacity of 1,158 MW. Daivões was the world and power from this 900 MW facility can be
inaugurated in July 2022 and is a 118 MW Storage Plant. available within two minutes. Due to its central location,
Gouvães was inaugurated in July 2022 and is an 880 MW it will be a key asset to stabilising the European grid.
pump storage plant. Finally, Alto Tâmega with a cost Turkey
of circa €1.5bn, will have a storage capacity of 20 GWh Construction on the Ysufeli Dam began in 2013
and is expected to eliminate 1.2 million tonnes of CO2 and it was inaugurated in November 2022, with full
emissions annually. commercial operations starting in summer 2023.
Romania and Bulgaria Standing at 275 metres, it is the tallest dam in Turkey
Project name, Country
Romania announced in 2022 that talks would resume and ranks among the top ten worldwide. It offers a total
Credit: Natel Energy with Bulgaria on building the Turnu Măgurele Nikopol installed capacity of 558 MW and houses three 180 MW
hydropower plant on the Danube River. With this project Francis turbine-generator units.
Ysufeli Dam’s annual production is 1,900 GWh and

which provides US$269m added value a year to the
Turkish economy and meets the energy needs of 2.5
million households at a cost of US$1.8bn.
United Kingdom
In August 2022, the UK Government followed up its
consultation on Large-scale Long Duration Energy
Storage, by concluding that it has “an important role to
play” but faces significant barriers to deployment under
the current market framework. They indicated they
would develop policies to enable investment by 2024 to
ensure sufficient long duration energy storage.
A proposal for PSH (Cruachan) was submitted for
an expansion of an existing asset (+600 MW) in
2022. Owners Drax are awaiting approval from local
authorities on expansion. The total new PSH capacity, if
approved, would be 1,040 MW.
SSE is providing a £100m investment boost to the Coire
Glas PSH project which is expected to require a capital
investment of over £1.5bn. The project, which received
planning consent from the Scottish Government in 2020
will be capable of delivering 30 GWh (circa 1,500 MW).
Gilkes Energy has unveiled scoping plans for its 900 MW
Earba Pumped Storage Hydro Project in Scotland with a
33 GWh storage capacity. The developer is now starting
Régua Hydro Power Plant, Portugal
public consultations on their plans. Credit: EDP

Europe Interesting fact

Battery storage hybridisation of existing hydropower plants is a technology that has seen some interesting
developments in Europe over the last few years. The first cases identified by IHA date back to 2018-19. Since
then, several additional installations were commissioned in numerous European sites.
Despite the relatively small size of the battery installed at Vogelgrun, initial results have demonstrated that
thanks to the battery systems, the power response of the plant was enhanced. Additionally, the mileage of
Case study: Vogelgrun hydropower plant critical components (the Runner Blade Bearing) was substantially reduced, indicating between 40 per cent and
50 per cent movement reduction of the Runner Blade Bearing. This has an associated reduction of wear and tear
The Vogelgrun HPP, managed by EDF, is located on the requires continuous management of the operating
of circa 55 per cent with an expected life span extension of circa 50 years.
Rhine River and it has been the target of a pilot study point of the 50-year-old Kaplan unit, minimising the
on BESS hybridisation under the framework of the EU battery size to limit the capital investment required.
research project XFLEX HYDRO. The installation included an adaptation of the Smart
The approach taken was to reduce the amount of Power Plant Supervisor designed to optimise the state
Implemented solution at Vogelgrun HPP
wear and tear caused by the provision of Frequency of charge of battery and support the turbine in the
Containment Reserve (a grid ancillary service that provision of a Frequency Containment Reserve.
requires a maximum power response time of 30s), which Generator Smart Power Plant Supervisor (SPPS)
Follow xflexhydro.com to find out more about the XFLEX Hydro project. Turbine Battery (+ inverter and transformer)
Battery switchgear
Main transformer
S
SPS

Europe 35
39
Ranking by total installed hydropower capacity
Installed Installed 24
Rank Country/Territory capacity (MW)* Rank Country/Territory capacity (MW)* 15
1 Norway 33,807 24 Iceland 2,086
7
2 Turkey 32,130 25 Latvia 1,588 1
3 France 25,669 26 Belgium 1,493 43
4 Italy 22,635 27 Luxembourg 1,332
25
5 Spain 20,425 28 Slovenia 1,307 42
Key 29
6 Switzerland 17,756 29 Lithuania 1,028
199 MW and below 32 40 33
7 Sweden 16,391 30 Montenegro 649 13 19
8 Austria 14,836 26 9
31 Macedonia 644 200 MW to 1,999 MW 27 20
9 Germany 11,471 18
32 Ireland 508 11
10 Portugal 8,252 2,000 MW to 9,999 MW 6 41 8 37 36
33 Belarus 96 3 28 23
11 Ukraine 6,317 12
34 Kosovo 92 10,000 MW to 19,999 MW 21 16
4
12 Romania 6,229 38 34
35 Greenland 91 17
13 United Kingdom 4,723 20,000 MW and above 30
36 Moldova 64 5 31
14 Greece 3,421 10 22 2
37 Hungary 58 14
15 Finland 3,246
38 Andorra 45
16 Serbia 3,166
39 Faroe Islands 39
17 Bulgaria 2,916
40 Netherlands 38
18 Slovakia 2,476
41 Liechtenstein 35
19 Poland 2,376
42 Denmark 7
20 Czechia 2,290
43 Estonia 4
21 Bosnia and Herzegovina 2,230
22 Albania 2,203 Top 5
23 Croatia 2,155
countries
by capacity
added in 1st 2nd 3rd 4th 5th
*including pumped storage 2022 Portugal Switzerland Turkey Norway Austria
998 MW 900 MW 558 MW 163 MW 89 MW

North and Central America Generation by

hydropower
723 TWh
Total installed capacity*
1,142 GW
1,011 MW

22 GW 96 MW
*Including pumped storage

The hydropower industry has had encouraging boosts this year in North and Central America, with policy
changes that will further unlock the potential to develop and modernise hydropower. North America's
substantial hydropower potential is predominantly concentrated within Canada, the United States, and Mexico.
Mexico, with its varied topography and extensive river systems, holds an estimated 20 GW of exploitable
hydropower potential. Canada, rich in water resources, has an estimated technical hydropower potential
of 160 GW and the U.S. has an estimated exploitable potential at over 65 GW. In 2022, 1 GW of hydropower
was developed, continuing with previous years’ development. Most notably, the U.S. Inflation Reduction Act
(IRA) and Canada’s 2023 budget will both incentivise hydropower development through innovative tax credit
schemes.
There was also an increase across countries to modernise existing hydropower projects, which expanded their
capacity and increased their expected lifespan, to continue providing renewable energy to communities and
power systems for longer.
To develop North and Central America’s sustainable hydropower projects, investment in the industry needs
to follow the policy announcements. The path forward requires innovative technical solutions, inclusive and
respectful engagement with indigenous communities, a strong commitment to environmental sustainability,
and regulatory streamlining.
Malpaso dam and spillway, Mexico

Credit: ANDRITZ

North and Central America latest developments
Canada
Hydropower provided Canada with approximately
61 per cent of the country’s total annual electricity than 3,800 jobs. Alberta will host TC Energy’s other
generation and represents more than half of its total project, the 75 MW Canyon Creek Pumped Hydro
generation capacity. The 2023 Canadian Budget Energy Storage Project, which will provide up to 37
introduces a Clean Electricity Investment Tax Credit, hours of on-demand, flexible, clean energy and ancillary
which is a 15 per cent refundable tax credit for eligible services to the electricity grid.
investments in non-emitting electricity generation Newfoundland and Labrador Hydro have proposed
systems including hydropower (regardless of scale) and to expand the 604 MW Bay d'Espoir hydroelectric
PSH, with new projects and refurbishment of existing generating station, which began operating more than
projects to be eligible. 50 years ago and includes seven generating units in two
The Keeyask power plant in Manitoba (695 MW), the powerhouses.
last two of seven generating units were placed in In British Columbia, construction of the 1.1 GW Site
service and the Romaine 4 power plant (245 MW) in C hydro project in Peace River, is ongoing, with the
Québec reached completion. The last unit came on- installation of the first turbine runner in 2022 and is
line, completing the commissioning of the four-plant expected to be operational in 2025.
cascade system, totalling its generation capacity to
1,550 MW. The Independent Electricity System Operator (IESO)
in Ontario released two reports in 2022: the Pathways
The Champlain Hudson Power Express is a ground to Decarbonization (P2D) and the Annual Planning
breaking high-voltage direct current underwater and Outlook, both of which emphasise the need to take
underground power cable project that will transfer 10.4 action to realise the potential of long-lead time
TWh of hydropower from Québec to New York City, hydropower projects. The IESO has highlighted that
expected to be commissioned in 2026. permitting and approvals must be streamlined, and
Canadian TC Energy Corporation is the owner and Indigenous community participation is essential for
developer of two pumped hydropower storage projects. success. The P2D assumes an additional 2,000 MW of
The Ontario Pumped Storage Project (1 GW) is expected long-duration storage will be added in the late 2030s to
Jean-Lesage generating station, Canada
to become operational in 2030 and will create more meet adequacy needs. Credit: Hydro-Québec

North and Central America latest developments
Honduras
Honduras is projected to add 200 MW from hydropower
Nicaragua
plants by 2025, supplying electricity to at least 120,000
Empresa Nicaraguense de Electricidad, the state-owned
homes across the country.
utility, is modernising two power plants and is seeking
Mexico financing for two hydropower projects that would add
Hydropower provides approximately 11 per cent nearly 50 MW to the company’s generation capacity.
of Mexico’s total annual electricity generation and
Panama
continues to grow in the country, with the government
A group of Panamanian lawmakers submitted a draft bill
investing directly in the modernisation of existing fleets Laboratory found that even during the most severe
to the national assembly that would declare a 15-year
and developing new projects. Mexico’s federal power droughts observed in the last two decades, hydropower
moratorium on granting permits and concessions for
company Comisión Federal de Electricidad (CFE) has has sustained 80 per cent of average power generation,
new hydroelectric projects in the Chiriquí province. This
recovered 261 MW of capacity so far as part of its plan which is approximately 20 per cent of electricity
region is home to most of the country’s hydropower
to overhaul its aged hydroelectric generation portfolio. demand across the West. The U.S. Department of the
plants, among them the country’s largest – the 300
Modernising the units has allowed the company to draw Interior and the Bureau of Reclamation have both stated
MW Fortuna plant. Hydropower has been beneficial
31 per cent more power from them. that improving the systems across the U.S. is a priority.
to the country, but greater regulations need to be
Mexico’s CFE is advancing several projects including implemented ahead of further construction. A brand-new small hydropower project at the University
modernising 13 hydroelectric units and the construction of Notre Dame, Indiana, U.S., will power an estimated 7
of three new generators, as well as the operation of United States of America per cent of the electricity for the campus. The 2.5 MW
There were significant policy announcements in the U.S.
six combined cycle units the company awarded to state-of-the-art facility started generating power in May
Siemens and Mitsubishi. In 2022 CFE announced which are expected to spur investment in both new and 2022 and has operated at about 70 per cent capacity.
that on the Grijalva River basin, optimising water existing hydropower. See case study for details. This project is offsetting 9,700 tons of carbon dioxide
management had led to a 41% increase year on While droughts have made headlines in the past year in annually, benefitting the University and the surrounding
year in electricity generation. the U.S., researchers from the Pacific Northwest National community. Main transformers, Malpaso, Mexico
Credit: ANDRITZ
North and Central America Interesting fact:

One cannot speak about hydropower in North America without invoking the concerns of Indigenous rights.
In the United States, the ‘Uncommon Dialogue’ initiative launched in 2021 set the blueprint for Native American
tribes, environmentalists, and the hydropower industry to reach a deal in 2022 on a proposed legislative
package that could boost clean energy as well as river conservation. This will give tribes the authority to put
conditions on permits for things like protection of tribal cultural resources and fish passage.
Case Study In neighbouring Canada, a settlement was reached with West Moberly First Nations, BC Hydro and the Canadian
government regarding financial benefits, contracting opportunities and jointly developed recommendations for
The United States made several major investment Additionally, earlier in the year, the U.S. Department of
land management measures over provincial Crown lands for the Site C hydro project in British Columbia.
announcements in 2022 that will positively impact Energy (DOE) announced US$8m for technologies to
the hydropower sector. Following the success of the increase hydropower flexibility. The following projects In addition, the Québec portion of the CHPE line to bring hydropower to New York City will be co-owned by
Infrastructure Investment and Jobs Act (commonly were awarded the money: the Mohawk Council of Kahnawà:ke (MCK), representing the Indigenous people whose community lies close
known as the Bipartisan Infrastructure Law) signed in to the start of the line. As noted by the MCK, “this project demonstrates that collaborating with an Indigenous
• General Electric’s research to develop a cost-
November 2021, the US$370bn Inflation Reduction Act community can prove to be mutually beneficial for industry and Indigenous communities alike”.
effective and easy-to-implement method to
(IRA) adopted in 2022 is the nation’s most significant increase hydropower units’ ability to ramp electricity
climate legislation to date. The landmark measure generation.
recognises that hydropower plays a critical role in
accelerating the transition to a more reliable, clean • Littoral Power Systems Inc’s Turbine and Generator
energy grid. The tax credits created by the IRA will upgrade system that designs, builds, and field tests
provide investment certainty upgrades at existing a rapidly deployable upgrade system for existing
hydropower facilities, incentivise development of new hydropower plants.
pumped storage facilities, retrofits of non-powered • Oregon State University’s Hybrid Hydropower-
dams with hydropower generation and new marine Storage Units that demonstrates and quantifies the
energy and hydrokinetic generation by creating a 10- value of a hybrid hydroelectric-storage generation
year investment tax credit and production tax credit units.
framework for these projects.
Fundamentally, the framework established by the IRA
The tax credits provided by the IRA will be equivalent and the DOE could help the hydropower industry by
to other renewable technologies such that a megawatt supporting billions of dollars in investment in building
of electricity produced from hydropower receives new projects as well as maintaining and enhancing
the same level of federal tax support as a megawatt existing infrastructure.
produced from other zero-carbon resources.
Undergroud Power house,
Angostura, Mexico
Credit: ANDRITZ

North and Central America

Installed Installed
Rank Country/Territory capacity (MW)* Rank Country/Territory capacity (MW)*
1 United States 102,009 12 Haiti 78
2 Canada 83,312 13 Cuba 65
3 Mexico 12,614 14 Belize 55
4 Costa Rica 2,331 15 Jamaica 30
5 Panama 1,845 16 Guadeloupe 11
6 Guatemala 1,513 17 Dominica 7
7 Honduras 849 18 Saint Vincent And The 6 2
Grenadines
8 Dominican Republic 623
9 El Salvador 572
10 Nicaragua 159
11 Puerto Rico 98
*including pumped storage
Key
199 MW and below
200 MW to 1,999 MW
Top 5 2,000 MW to 9,999 MW 3 13

countries 12 8 11
14
by capacity
1 st
2 nd
3 rd
4 th
5 th 10,000 MW to 19,999 MW 16
7
added in 20,000 MW and above 10
15 17
2022 Canada United Panama Nicaragua Puerto Rico 6

5
18
1,012 MW States 34 MW <1 MW <1 MW 9
96 MW 4

South America Generation by

hydropower
712 TWh
Total installed
capacity*
180 GW
1,525 MW
Pumped storage installed Pumped storage

capacity capacity added in 2022
994 GW 0 MW
South America experienced a significant increase in hydropower development in 2022, with over 1.5 GW
capacity installed and 17 projects getting commissioned or coming online. Countries in this region are making
considerable advances in implementing policies and setting targets to increase renewable energy production,
specifically hydropower, since there is an abundance of this natural resource. Brazil leads with a total
hydropower potential estimated at 260 GW, predominantly located in the Amazon Basin.
In the Andean region, both Colombia and Peru exhibit substantial exploitable hydropower capacities exceeding
50 GW each, supported by their abundant water resources and conducive geographical features. Argentina,
with a technical hydropower potential of 130 TWh/yr, has harnessed only a quarter, indicating considerable
opportunity for growth.
In 2022, rainfall levels were higher than average in Chile and Colombia, boosting the hydropower output
compared to previous years, which experienced drought. In Chile specifically, the year-on-year increase for
August 2022 was 87 per cent. Similarly, in Brazil, water was spilled from five dams on the Rio Grande River basin,
which had not happened since March 2011. In December 2022, the level of water in the reservoirs of Brazil’s
southeast/centre-west hydroelectric system was at about 50 per cent of capacity, double what it was a year ago.
The recovery of the hydro reservoirs is a result of higher rainfall in 2022 compared with 2021, when Brazil faced
its worst drought in 91 years.
Itaipu, Brazil
Credit: Voith Hydro

South America latest developments
Brazil
In 2022, Brazil added approximately 300 MW of
hydropower after commissioning over 15 hydropower
plants, the largest of which was the São Roque plant at
141.9 MW installed capacity.
Due to socio-environmental considerations, the feasible impoundments. The electricity delivered from ORPC
exploitation is reduced to around 68 GW, highlighting devices would displace diesel fuel in the market. This fits
the necessity of a sustainable approach in balancing in the municipality’s larger plan of expanding its usage
power generation with ecological conservation. of renewable energy by expanding electric vehicle
This includes the use of less invasive run-of-river charging networks and tourist traveller services, adding
systems, comprehensive socio-environmental impact public lighting in off-grid areas in the community
assessments, and ensuring enhanced community and creating additional electrical capacity to support
participation in decision-making processes. sustainable community development.
Chile Colombia
Chile is ramping up their investment in renewable Empresas Públicas de Medellín (EPM) launched the
technologies including hydropower. The country’s commercial operation of the first two turbine-generator
hydropower capacity increased by 477 MW, mainly due units of its 2.4 GW Ituango Hydropower plant. The plant
to the commissioning of the Las Lajas and the Alfalfal is delivering continuous electricity supply from 600 MW
II power plants, both part of the same developer, Alto of capacity to the national grid and once completed in
Maipo. 2024 will provide 17 per cent of Colombia’s electricity
demand from its eight units.
The Ocean Renewable Power Company is installing the
country’s first commercial river hydrokinetic system Five other hydropower projects came online in 2022,
in the municipality of Chile Chico. This type of system cumulatively adding total generation capacity of over
Itaipu, Brazil generates electricity without the need for dams or 600 MW.  
Credit: Gemma Regniez
South America latest developments
Ecuador
Hydropower provided 73 per cent of Ecuador’s
electricity, and in 2022, two new plants began
operation, Sarapullo (49 MW) and Sabanilla (36 MW)
hydropower plants.
The government of Ecuador has announced a plan to
offer public-private partnerships for 10 new hydropower
projects with a combined total capacity of 640 MW and
investment of US$1.52bn.
French Guyana
Voltalia is a Brazilian company developing a 2.9 MW
run-of-river hydropower station in French Guyana. It is
expected to produce 12.7 GWh/yr, which will replace
the current diesel generators used in the community
and will reduce the carbon footprint of the municipality
by more than 18,000 tonnes of CO2 per year.
Peru
RC Hydro has begun initial construction work on the
40 MW Churo run-of-river hydro project in the Lima
region of Peru, with an expected cost of US$60 million
and completion date in 2024. The electricity produced
will be used to supply the national grid. According to
the country’s National Interconnected System Financial
Operation Committee, Peru will add 650 MW of
hydropower in 2023. Empresas públicas de Medellín project , El Buey Columbia
Credit: Victoria Cardenas
South America Interesting fact
Around the world, the countries that are using almost 100 per cent renewable energy to generate electricity
are Albania, the Democratic Republic of Congo, Iceland, Paraguay, Costa Rica and Norway. These countries have
made significant strides in implementing renewable energy sources such as solar, wind, and hydropower and
have set ambitious targets for continuous growth. The Itaipu Dam, located on the Paraná River, is one of the
largest hydroelectric power plants in the world and generates about 95 per cent of Paraguay’s electricity helping
Paraguay generate all its electricity from renewable sources.
Case Study
Hidroituango also referred to as Ituango, is a 2021, a report warned that the decision to abort the
hydropower plant located in Antioquia, Colombia, project would pose a greater socio-environmental
which will provide 17 per cent of the country’s threat than finishing it. The Colombian licensing
electricity demand when completed in 2024. Ituango is authority ANLA provided a series of recommendations
a project of the Ituango Hydrolectric Company, made for the safe completion of the dam and powerhouse.
up of the majority partners Instituto para el Desarollo de These recommendations were implemented and since
Antioquia, the Government of Antioquia and Empresas late 2022, Ituango has been supplying continuous
Públicas de Medellín who is the main contractor and electricity from 600 MW capacity to the national grid.
operator. The project is undergoing an assessment under the
The project’s completion had been delayed due to Hydropower Sustainability Standard to certify its
severe weather conditions. Between April and May in compliance and demonstrate its alignment with
2018, Antioquia experienced heavy rains which caused performance standards. This assessment is undergoing
large landslides. These events coupled with geological public consultation with an expected completion in
characteristics, resulted in the premature filling of the June 2023.  
reservoir. A sudden unblocking of one of the diversion Once Ituango is fully completed in 2024, it will have a
tunnels caused flooding downstream of the dam and an total installed capacity of 2,400 MW and will represent
evacuation of the surrounding communities. a reduction in emissions of 4.4 million tons of CO2 per
A year later, Colombia’s National Disaster Risk year.
Management Unit declared that the 600 families that
were evacuated could safely return to their homes. In
Itaipu, Brazil
Credit: Gemma Regniez

South America 2
13
Ranking by total installed hydropower capacity 11 12
3
Installed Installed 8
1 Brazil 109,778 8 Ecuador 5,191
2 Venezuela 16,829 9 Uruguay 1,538
3 Colombia 12,563 10 Bolivia 759
7
4 Argentina 11,359 11 Suriname 180
1
5 Paraguay 8,810 12 French Guiana 119
6 Chile 7,289 13 Guyana 3
10
7 Peru 5,515

5
9
6 4
Key
199 MW and below
200 MW to 1,999 MW
Top 5
countries 2,000 MW to 9,999 MW
by capacity
added in 1st 2nd 3rd 4th 5th 10,000 MW to 19,999 MW
2022 Colombia Chile Brazil Ecuador Argentina 20,000 MW and above

618 MW 477 MW 332 MW 84 MW 14 MW

Africa Generation by
hydropower
150 TWh
Total installed
capacity*
40 GW
1,860 MW
Pumped storage installed Pumped storage

capacity capacity added in 2022
3.4 GW 0 MW
Africa has the world’s fastest growing population, yet access to clean, secure, and affordable, energy services *Including pumped storage
has not kept pace with the continent’s expanding needs despite the continent having the largest percentage of
untapped hydropower potential in the world. The Democratic Republic of Congo (DRC), Ethiopia, Angola, Sudan,
Congo and Madagascar, have all been identified as having substantial untapped potential.
Hydropower, among other renewables, could support Africa’s energy sector expansion in a way that is
compatible with both the continent’s own development goals and global demand for renewable energy and
reach climate objectives. Indeed, the huge increase in solar power in particular, Africa has 60 per cent of the
world’s solar potential and the technology could provide 30 per cent of its power by 2050, will increase the
demand for energy storage to make the most efficient use of this valuable resource.
Africa had a significant year in terms of hydropower development, over 1 GW of hydropower capacity was
installed in nine countries across the continent and large-scale projects are underway to provide affordable and
dispatchable electricity.
60 per cent of the hydropower installed capacity in the region is over 20 years old so modernisation efforts are
important to maintain and where possible, improve access to clean and reliable energy. To help address this,
the AfDB has implemented the Africa Hydropower Modernisation Program, supported by IHA. This programme
provides significant market opportunity for rehabilitation of Africa’s existing hydropower plants and to increase
generation capacity at a low cost, and with relatively short lead times and minimal environmental impact.
Foreign investment has been instrumental to the development of new projects in the region, from countries
such as China, Canada, the United Kingdom and Norway. Within the continent, the private sector is beginning to
finance projects for the first time, as seen in Uganda, Gabon and Cameroon. While this is an encouraging trend,
unlocking more finance for sustainable hydropower remains key to Africa’s energy future.
Cahora Bassa plant, Mozambique, Africa

Credit: Hidroeléctrica de Cahora Bassa

Africa
Angola
The Caculo Cabaça hydropower project is a 2 GW
run-of-river hydroelectric facility under construction
in the Kwanza Norte Province of Angola. The project is
being developed by Angola’s Ministry of Energy and Burundian government approved a project to build two
Water and is expected to be commissioned in 2024. hydroelectric power stations on the Mulembwe and
Upon completion, Caculo Cabaça is expected to be Ruvyironza rivers. These facilities will inject 10.65 MW
the biggest hydroelectric facility in Angola, surpassing into the local electricity grid and will be built by Songa
the Laúca hydroelectric power station. Chinese foreign Energy.
investment helped finance the project, providing a Cameroon
US$4.1bn loan. Currently, Angola's exploitable potential In 2022 the first private hydroelectric power plant under
is 12 GW, of which only 4 GW is currently harnessed, is 5 MW was commissioned in the village of Mbakou in
a focus for government infrastructure plans aimed at Cameroon, funded by the French Global Environment
addressing increased electricity demand. Fund. This project is part of a bigger plan aimed to
Burundi unlock the potential for smaller independent power
An additional 15 MW of power was added to Burundi’s producers in Cameroon.
electricity grid by the Ruzibazi hydropower plant, which Cameroon will see significant hydropower development
was handed to the government of Burundi by the once the 420 MW Nachtigal hydroelectric power plant
Chinese company Sinohydro. in Nachtigal is operational in 2024, which is projected
Burundi’s Jiji and Mulembwe Hydropower Plant to increase the country’s electricity production by
Development Project is set to be completed in 2025 30 per cent. The Nachtigal Hydro Power Company is
Removal of generator top covers, Jebba Hydropower Plant, Niger
with a capacity of 48 MW, which will double the energy implementing the project with a consortium made up
Credit: Mainstream Energy Solutions Ltd power generation in the country. Additionally, the of Electricité de France, IFC and the State of Cameroon.
Africa latest developments
Additionally, British firm Savannah Energy has signed an

agreement with the Cameroon government to develop
the 75 MW Bini a Warak Hydroelectric Project (the ‘Bini
Project’) in the country’s northern region. It is expected Guinea
Egypt Eswatini
to increase current on-grid electricity generation Egypt has a large undertaking in the coming years as Guinea has doubled its hydropower production in
The Eswatini Electricity Company plans to conduct
capacity in northern Cameroon by over 50 per cent. it plans to replace 19 turbines at the Aswan High Dam the nation after the Souapiti hydroelectric facility
an environmental and social impact assessment and
commissioned the roller-compacted concrete gravity
Côte d’Ivoire and Aswan Low Dam, as Ethiopia starts producing the associated environmental and social mitigation
dam equipped with four turbines, totalling 450 MW.
The AfDB has approved finance for the Singrobo electricity from the Grand Ethiopian Renaissance Dam, plan for the 10 MW expansion of the existing Maguga
The project is co-owned by the Ministry of Energy and
Hydropower project (44 MW) in Côte d’Ivoire. The which itself is situated on a main tributary of the Nile Hydropower plant (10 MW).
Environment of the Republic of Guinea and the operator
project will include a 3.5 km transmission line and River. The cost of rehabilitating the stations is estimated Gabon
Société de Gestion et d’Exploitation de Souapiti
substation to connect the power generated to the at US$48m, which will be financed through a loan from To scale up clean energy production capacity in Gabon,
(SOGES).
existing grid. This project will contribute to the country’s the German Ministry for Economic Cooperation and IFC, the Government of Gabon, Meridiam Infrastructure
net zero ambition, as it is projected to reduce Côte Development under an agreement signed with the Africa Fund FIPS, Meridiam Infrastructure Africa Parallel Kenya
d’Ivoire’s emissions by 109,561 tonnes of CO2. German Development Bank. Fund FIPS and the Fonds Gabonais d'Investissements The planned Kerio Valley will be a 60 MW hydropower
Stratégiques, with the support of the Government project on the Arror river basin in Elgeyo-Marakwet,
The Democratic Republic of the Congo Ethiopia
of Canada, announced a financing package for the Kenya. The project is currently in the permitting stage
The Democratic Republic of Congo (DRC), Ethiopia, As of August 2022, Ethiopia’s Grand Ethiopian
Angola, Sudan, Congo and Madagascar, have all been Renaissance Dam (GERD) began generating electricity Kinguele Aval hydropower plant, the first independent and is expected to be developed in a single phase with
identified as having substantial untapped potential. The from its second turbine, which has a capacity of 275 power producer in Gabon. a commission date in late 2023.
DRC, enriched by the Congo River, holds an exploitable MW, bringing the dam’s current operational capacity The Kinguele Aval hydropower plant has an installed Namibia
hydropower potential of around 100 GW. However, to 750 MW. Once completed, it will have 13 operating capacity of 35 MW and is expected to bring a low-cost The proposed 600 MW Baynes Dam on the border
various political and economic challenges have turbines, with an expected capacity of 5 GW, making it clean power generation capacity to Gabon's capital between Angola and Namibia received additional
restricted exploitation to 3 per cent. The Government of the largest power plant in Africa. Ethiopia’s exploitable Libreville. IFC expects the project to generate 203 GWh support from the AfDB. The AfDB is funding further
the DRC has ambitious plans for the Inga III dam project; potential is over 30 GW, with roughly 10 per cent being of electricity, amounting to approximately 9 per cent technical assistance to engage an independent panel
if this vision materializes, the DRC could transform into a developed, with the GERD as the leading project to be of the country’s current total output, enough to serve of experts to review and validate all the design work
key player in Africa's electricity industry. developed. 32,000 customers. according to international standards.
Nigeria
Mainstream Energy Limited was selected as the
concessionaire for the 700 MW Zungeru hydropower Mali
plant in Nigeria. In another development, the National The Gouina hydroelectric power plant in Mali has been
Council of Privatisation an external restructuring commissioned by the Senegal River Basin Development
scheme proposed by KEPCO Energy Resources Nigeria Organisation, an organisation formed by Mali, Senegal,
Limited, the core investor in Egbin power plant. The Guinea and Mauritania that jointly manages the Senegal
approval enables the entity to boost its capacity to raise River and its drainage basin. 85 per cent of the US$460m
the required capital to double the existing capacity of 140 MW run-of-river project was funded by the Export-
the plant to 2.6 GW. Import Bank of China.
Malawi Mali currently has 756 MW of hydropower capacity
A joint venture between Norway’s Norfund, Scatec, under development.
Electricité de France and British International
Madagascar
Investment will develop a 350 MW Mpatamanga
In Madagascar, the 28 MW Farahantsana hydroelectric
hydropower plant in Malawi. The project will increase
power station was commissioned by the project
security of supply, reduce energy shortages, and help
developer, Tozzi Green Madagascar, and is the largest
secure the country against floods. Mpatamanga will
facility to date in the country. It is operational and the
supply electricity to approximately two million people
facility provides 6 per cent of Madagascar’s installed
and create 180,000 jobs. This joint venture will also
capacity, with its four 7 MW Francis turbines.
develop the first tri-national Public-Private Partnership
Engaging lifting beam, Jebba Hydropower Plant, Niger
in Africa (Ruzizi III HPP) and Malawi’s largest power plant Madagascar has a technically feasible hydropower
Credit: Mainstream Energy Solutions Ltd (Mpatamanga HPP) among others. potential of 180,000 GWh, yet less than one per cent has
been developed so far. Right now, 162 MW of installed

hydropower capacity is producing 61 per cent of the
nation’s electricity. Sahofika is a 192 MW hydropower
project that it still on its permitting stage with an
expected commission date in 2024. It is planned to be
located on Onive river/basin in Antananarivo. The power project that will connect over 175,000 homes with clean
plant, including the associated 220 kV transmission line, energy and will contribute to the country’s ambition of In addition, other smaller hydropower plants are in the
are being financed by the AfDB. 100 per cent electricity for all. planning stages but are expected to produce 600 MW
Morocco Tunisia
and after these plants are developed, hydropower will
Another 350 MW hydroelectric facility will be built in Tunisian utility, Société Tunisienne de l’électricité et
contribute over 4 GW to Tanzania’s energy mix.
Morocco. The Abdelmoumen PSH power plant (350 Uganda
du gaz is planning to build a 400-600 MW PSH plant, Zambia
MW) will be developed by the Office National de for a 2029 commissioning date. Robust studies are Two hydropower plants were commissioned in Uganda, The final three units of the Kafue Gorge Lower
l'Electricité et de l'Eau Potable, with Vinci Construction being conducted on the topographical, geotechnical, adding 21.8 MW of power to the country’s energy Hydropower Station in Zambia have been
and Andritz Hydro. It is expected to be commissioned in environmental, social impact and grid connection mix. Serengeti Energy’s run-of-river Nyamwamba II commissioned, with a total capacity of 750 MW. The five
2023. before the development of the project. The cost of the power plant produces 7.8 MW and Kikagati Power turbines were completed in different stages, with the
Reunion studies is covered by the French Development Agency, Company Ltd. developed the Kikagati Hydropower Plant final turbine becoming operational in March 2023. Built
Andritz has signed a contract with Electricité de France the European Investment Bank, and the German producing 14 MW. by PowerChina’s subsidiary, Sinohydro, the station is the
to rehabilitate two horizontal Francis turbines in the 20 Development Bank. The Ugandan government agreed to create a new, first of its size in the country and is currently the biggest
MW Takamaka I hydropower plant on the island of La Tanzania state-run company called the Uganda National single infrastructure construction project in Zambia.
Réunion, set to be commissioned by June 2024. In Tanzania, there are several hydropower developments Electricity Company Limited to manage the generation, During construction, the project created 15,000 jobs for
Rwanda under development. The largest project is the Julius transmission, and distribution segments of the locals and drove the development of industries across
The Mushishito-Rukarara V Hydropower Plant was Nyerere hydropower facility with an expected capacity electricity sector, consequently not renewing the Zambia. Now that is it operational, it will supply power
inaugurated in June 2022, adding 5.5 MW to Rwanda’s of 2 GW which will increase the country’s installed contracts with Eskom. The government states this is an to Zambians, as well as exporting electricity to Malawi,
electricity grid. Omnihydro developed the US$31.1m capacity to 3.7 GW. effort tprovide national control. Zimbabwe, South Africa and Namibia.
Africa latest developments Interesting fact: Democratic Republic of the Congo

Sister Alphonsine Ciza spends her day with a team of nuns and engineers to supervise the micro hydroelectric
plant she built in her town of Miti in eastern Democratic Republic of Congo. Ciza built the plant to overcome
daily electricity cuts in her town and provide power to the residents. The micro plant is responsible for keeping
the lights on in the convent, the church, two schools and a clinic free of charge. Without the plant, residents
would only have electricity two or three days a week for a few hours.
Case study: Africa Hydropower Modernisation Programme;

Continent-wide Mapping of Hydropower Modernisation Needs
In Africa, nearly 50 per cent of installed hydropower maintenance costs, enhance water management, and
capacity is over 40 years old, and 60 per cent is enable safer operations, all while being less cost-
over 30 years old. As part of its Africa Hydropower intensive than developing green field projects.
Modernisation Programme, the African Development IHA estimated that to secure reliable, efficient and safe
Bank (AfDB) commissioned the International electricity generation from the plants in the high-need
Hydropower Association (IHA) to map the status of category, approximately US$2.1 billion will need to be
existing hydropower plants in the continent and identify invested. As for the medium-need projects, a US$4.7
targets needing modernisation. IHA investigated the billion investment will be required.
conditions of 87 hydropower projects across Africa,
using surveys and follow-up interviews with their As part of the Africa Hydropower Modernisation
operators and owners to provide a holistic idea of the Programme, the AfDB is currently finalising the selection
development opportunities across the continent. of projects that it will support by providing grant
funding for relatively simple rehabilitation activities as
Modernisation projects across the continent were well as funding for studies required to identify detailed
categorised based on varying degrees of rehabilitation scope and cost of more complex modernisation
need: low, medium and high. projects.
The study concluded that 66 plants out of 87 are in The report's public version will be released on the 22
medium and high need of modernisation, of which 30 June 2023 and available for download from www.
currently require urgent intervention. Modernising the ahmpafrica.org.
existing fleet will help secure the availability of over 14.7
GW installed capacity, increase project flexibility, reduce
Jebba Hydropower Plant, Niger
Credit: Mainstream Energy Solutions Ltd

Africa
33
10
Installed Installed Installed
capacity capacity capacity
Rank Country/Territory (MW)* Rank Country/Territory (MW)* Rank Country/Territory (MW)* 23
1 Ethiopia 4,824 16 Kenya 837 31 Lesotho 73 5
2 Angola 3,836 17 Cameroon 822 32 Burundi 72

3 South Africa 3,600 18 Tanzania 562 33 Tunisia 66
4 Zambia 3,153 19 Malawi 391 34 Sierra Leone 64 38
5 Egypt 2,876 20 Mali 360 35 Mauritius 61 20 9

6 Democratic Republic of the Congo 2,760 21 Namibia 347 36 Eswatini 61 30
7 Mozambique 2,216 22 Gabon 331 37 Togo 49 39

8 Nigeria 2,111 23 Algeria 269 38 Mauritania 48 12 40
9 Sudan 1,923 24 Congo 218 39 Burkina Faso 34 34 8
37 1
15 11
29 41
10 Morocco 1,770 25 Madagascar 214 40 Benin 33
17
11 Ghana 1,584 26 Reunion 134 41 Central African Republic 19
12 Guinea 1,156 27 Equatorial Guinea 128 42 Sao Tome And Principe 2 13
13 Uganda 1,095 28 Rwanda 117 43 Comoros 1 27 16

42 22 24 28
6
14 Zimbabwe 1,081 29 Liberia 93
15 Cote D’Ivoire 879 30 Senegal 81 *including pumped storage 32
18
Key 43
2 19
199 MW and below
4
200 MW to 1,999 MW
Top 5 14 7 25
35
countries 2,000 MW to 9,999 MW 26
by capacity
1 st
2 nd
2 nd
3 rd
4 th 21
10,000 MW to 19,999 MW
added in
36
2022 Ethiopia Guinea Zambia Mali Madagascar 20,000 MW and above
750 MW 450 MW 450 MW 140 MW 28 MW 3 31

South and Central Asia Generation by

hydropower
539 TWh
Total installed
capacity*
164 GW
1,940 MW

7.7 GW 0 MW

In South and Central Asia, hydropower presents significant opportunities for the region's development.
With several countries experiencing rapid population growth and increasing energy demands, harnessing
untapped hydropower resources can contribute to energy security and economic growth. The optimisation
of this potential requires a balance between advancing hydropower generation, preserving environmental
integrity, and maintaining geopolitical equilibrium. The Himalayas, serving as Asia's water tower, present
a remarkable but fragile opportunity for hydropower expansion, which demands the strengthening of
transnational cooperation, particularly among countries such as China, India, Bhutan, and Bangladesh that share
the Brahmaputra – the world's largest transboundary river basin. The successful exploitation of hydropower
potential in South and Central Asia demands a strategic, environmentally conscious, and collaborative approach,
underscoring the importance of international cooperation in this area.
In 2022, the entire region saw nearly 2 GW of new hydropower installed, with many large-scale projects nearing
completion and set to be commissioned in 2024-2025. This is due to many governments in the region making
commitments and prioritising financial incentivisation policies, as well as creating targets for renewables
(including hydropower), across 2022 and early 2023. As well as regional partnerships which have begun to take
shape across countries as governments encourage the development of hydropower.
Notably, the Energy Ministers from Kyrgyzstan, Uzbekistan and Kazakhstan signed a roadmap agreement for the
construction of the Kambar-Ata-1 hydropower project. The 256 m rockfill dam will have an installed capacity of
1.8 GW when built. The governments of Nepal and India announced an agreement to build the 695 MW Arun IV
project, on the Arun River and to improve power transmission to raise the electricity import and export capacity
from 600 to 800 MW.
India also finalised its "Guidelines for Pumped Storage Hydropower Projects in Country” in April 2023, which is a
landmark document that will incentivise further hydropower development. This region has significant potential
to expand its hydropower development which will result in a massive economic boost as well as energy security
for local communities. Nurek hydropower plant, Tajikistan
Credit: ANDRITZ

South and Central Asia latest developments
Azerbaijan
Azerbaijan inaugurated a cascade of three small
hydropower projects that increased the country’s overall
installed capacity by 5 MW.
Bhutan country also saw a tremendous increase in generation
Bhutan is close to commissioning four projects which due to the high increase in monsoon rains. The 1.5 GW
would together add an additional 2.9 GW of installed Nathpa Jhakri hydropower station set the highest single
capacity, which would more than double the current day generation record in July 2022. Kazakhstan
installed capacity in the country. Kazakhstan set ambitious goals for the development
Two large-scale PSH projects were announced in India Nepal
of renewable energy including hydropower. Achieving
Georgia in 2022. The Gandhisagar (or Gandhi Sagar) 1,440 MW Nepal had an increase of 174 MW of installed
these goals requires overcoming its dependence on
A new scheme has been developed in cooperation pumped storage project will use an existing reservoir hydropower capacity. This is due to the many smaller
cheap domestic coal and addressing its lack of flexible
between the Government of Georgia and the and have an energy storage capacity of 10 GWh. In the hydropower projects becoming operational, with
generating capacity, which provides ample opportunity
International Monetary Fund to facilitate the use of Maharashtra state, JSW Neo Energy announced that the largest being the 28 MW run-of-river Lower Likhu
for foreign hydropower investments.
renewable energies and attract investment to Georgia. they will develop a 960 MW pumped storage project. project.
The energy support scheme includes incentives to Kyrgyzstan
Iran The Nepalese government has endorsed hedging
develop 800 MW of hydropower within the large In October, the President of Kyrgyzstan took part in
Iran saw a year-on-year increase in installed hydropower regulation in a bid to attract more foreign investment in
initiative to promote renewable investment. the ceremony celebrating construction commencing
capacity from 12,193 MW in 2021 to 12,543 in March the country. This provision that will help minimise the
at Kulanak hydropower project, and in March 2023 the
In December 2022, Georgian Prime Minister announced 2022, an increase of 356 MW. potential financial risk emanating from fluctuating asset
European Bank for Reconstruction and Development
they would be resurrecting the Soviet era Khudoni 702 Israel price including reservoir or semi-reservoir hydropower
(EBRD) agreed to contribute financially to the project.
MW hydropower project, which if built will become the The 344 MW Kokhav Hayarden PSH plant, located near projects with at least 100 MW of capacity.
Additionally, EBRD agreed to finance modernisation
second largest hydropower plant in the country. the city of Beit She'an and some 120 km from Tel Aviv, is of hydropower projects in Kyrgyzstan, with Chakan Pakistan
India nearing completion. The project is being built by Power GES, the state-owned hydropower operator of nine The Karot 720 MW run-of-river project was
India saw an increase in installed capacity with Construction Corporation of China and will become small hydro power plants, to receive a financial commissioned in summer 2022. This project, built
approximately 434 MW new capacity added over the the largest pumped storage power plant in Israel. This package of US$13.8m. The money will help finance the by China Three Gorges Corporation (CTG), is the first
period, with one of the largest projects being the 180 will more than double the country’s installed pumped rehabilitation and modernisation of the Lebedinovskaya hydropower project to be completed as part of the
MW run-of-river Bajoli Holi in Himalchal Pradesh. The storage capacity. project, which has an installed capacity of 7.6 MW. China – Pakistan Economic Corridor initiative. Karot
will provide stable and affordable energy to Pakistan

to meet the electricity demand of roughly 5 million
residents, will reduce CO2 emissions by an estimated 3.5
million tons per year and effectively alleviate Pakistan’s
power shortage.
capacity by adding 10 GW by 2030 through the
CTG provided scholarships for more than 20 public phased completion of its under-construction projects.
welfare projects to promote development of Contributing to the increase is the 800 MW Mohmand
surrounding communities. In addition, the project can dam project, with expected completion date in 2026,
provide more than 4,500 direct and indirect local jobs with recent financial support announced by the Saudi
each year. Fund for Development.
Following a blockage found in a tunnel in July 2022, Sri Lanka
the Neelum-Jehlum hydropower project became non- Resus Energy has connected the eighth smallest
operational for safety reasons. The tunnel collapsed in hydropower project in Sri Lanka to the national grid,
November, but in March 2023 it was reported that the providing an installed capacity of 2.4 MW and expected
969 MW project will be operational in July 2023. to produce 8 GWh annually. The development of
The monsoon period saw substantial increases in hydropower in Sri Lanka is part of the bigger plan to
generation across the region, however this led to achieve 70 per cent of their electric generation from
flooding and some projects were heavily impacted. The renewables by 2030.
flooding of the 4,320 MW Dasu hydropower project Russia
required a rushed diversion to be constructed to There has been a great deal of modernisation to
mitigate impacts and to allow further building of the increase capacity at existing hydropower projects
main dam. across the country. The Volzhskaya hydropower
Upper Chuwa Headworks area, Humla District, Nepal
The Pakistan Water and Power Development Authority project increased by 63 MW, the Irkutsk hydropower
Credit: Er. Krishna Bahadur Kumal, Bizbell confirmed its ambition to double its current installed project increased by roughly 25 MW and the
Votkinskaya hydropower project increased by 15 MW. comes six months after the European Investment Bank
Refurbishments increased Russia’s hydropower capacity expressed interest in financing the ‘world’s tallest dam.’
by nearly 145 MW in 2022. The World Bank grant will include hiring of experts in
dam safety and environmental and social frameworks,
The Russian Prime Minister announced that to increase
and the Rogun project will have a benefit-sharing
its renewable energy mix, approximately 7,000 MW of
mechanism to ensure that socio-economic programs
new hydropower projects will be constructed. This is
receive a portion of the revenues.
in addition to a plan to commission 128 MW of small
hydropower projects by 2025 Uzbekistan
It was announced that 250 micro-hydropower
Tajikistan
projects would be completed in the coming years.
In Tajikistan, the Nurek hydropower project’s
The Government anticipates there are 17 projects
rehabilitation progressed after operation began of the
with a total capacity of 197 MW scheduled to be
first unit rehabilitated. The completion of the unit – the
commissioned in 2023. There are 50 micro-hydropower
first of nine expected to be rehabilitated – was a major
projects with a capacity of 438 MW set to commence
milestone. The new turbine extends the economic life of
shortly. Construction of the Yavan Hydropower project
the unit by 35 years and increased the installed capacity
has begun with a ceremony that was attended by the
by 40 MW to 375 MW. The Nurek HPP, with an installed
Presidents of Tajikistan and Uzbekistan for the 140 MW
capacity of over 3,000 megawatts, generates about 50
new project.
per cent of total annual energy demand in Tajikistan.
The World Bank approved US$15m in grant financing
for the Technical Assistance for Financing Framework
for the Rogun hydropower project in late 2022. This
Karot Hydropower Station, Pakistan

Credit: CTG
South and Central Asia Interesting fact
In January, a failure in Pakistan’s national grid caused an electrical outage that left people without power for
more than 12 hours across the country. It was reported that the blackout was caused by voltage fluctuations.
The only way to regain power in the country if the entire national grid loses power is to restart individual power
stations. This process is known as a “Black start,” which means that smaller power sources start larger ones, and
the domino effect continues until the entire country is powered up again. Some of the first power sources to
turn on were hydropower plants in northern Pakistan because hydropower does not require electricity to start-
up in the same way that other generation does. Hydropower reservoirs hold enough water to power turbines
during a black start operation and they can be restarted fast with minimal station power.
WAPDA reported that Tarbela, Mangla, Ghazi Barotha and Warsak were successfully re-connected to the grid,
essentially marking the start of the restoration as electricity from these power plants was sent to other plants so
Case Study that they could reboot and resume operations until the grid was completely restored the following morning of
The Government of India published its long- • Reimbursing the State Goods and Services Tax or the incident.
anticipated “Guidelines to Promote the exempting land to be acquired for off-river PSH
Development of Pumped Storage Projects (PSP)”. and should not have to face an upfront premium
The Guidelines recognise the value of PSH when for project allocation.
it comes to integrating variable renewable energy • Identifying and safely developing exhausted
sources to the energy grid. With PSH expected to mines for prospective sites and that concessional
play a key role in grid stabilization, meeting peak climate finance could be used to support the
power demand and benefitting the economy, development of PSH.
the government formulated special guidelines to
promote its development. India estimates that it will need at least 18.8 GW of
PSH to support the integration of wind and solar
Currently, PSH is not adequately monetised, into India’s grid by 2032, and the potential is much
and unfairly taxed. The Guidelines share higher. Additionally, the Central Electricity Authority
recommendations for market, policy and recently revised estimates show that the on-river
safe development to encourage promote the pumped storage potential alone is 103 GW in
development of pumped storage projects: India, with many sites for off-river pumped storage
• Monetising PSH's ancillary services to meet potential also available.
critical electricity market measures.
Nurek hydropower plant, Tajikistan

Credit: ANDRITZ

South and Central Asia

Installed Installed
1 Russia 55,819 12 Uzbekistan 2,081 1
2 India 51,786 13 Sri Lanka 1,859

3 Iran 12,543 14 Syria 1,505
4 Pakistan 10,649 15 Armenia 1,324
5 Tajikistan 6,484 16 Azerbaijan 1,155
6 Kyrgyzstan 3,952 17 Afghanistan 461 8
7 Georgia 3,459 18 Israel 307

7 12 6
8 Kazakhstan 3,087 19 Lebanon 282 16
22 5
9 Iraq 2,756 20 Bangladesh 230 15
10 Bhutan 2,335 21 Jordan 12 14 Key
9 17
11 Nepal 2,162 22 Turkmenistan 5 19 3
4 199 MW and below
18 11
10
200 MW to 1,999 MW
21
2
2,000 MW to 9,999 MW
20
10,000 MW to 19,999 MW
13 20,000 MW and above
Top 5
countries
by capacity
added in 1st 2nd 3rd 4th 5th
2022 Pakistan India Iran Nepal Russia
720 MW 434 MW 356 MW 174 MW 145 MW

East Asia and Pacific Generation by

hydropower
1,714 TWh
Total installed
capacity*
548 GW
24,944 MW

84 GW 8,741 MW
This region stands at the forefront of the global hydropower landscape. China, as the world leader, has an
exploitable hydropower capacity ranging between 400-700 GW, largely attributed to its conducive geographical
features, especially in the southwestern regions. Political stability permitting, Myanmar, with an estimated
exploitable capacity of around 100 GW, has the potential to become a significant hydropower exporter. In the
heart of Southeast Asia, Indonesia is estimated to have a technical hydropower potential of approximately 80
GW, of which around 38 GW is considered economically feasible. This is primarily on the islands of Sumatra, Java,
and Sulawesi. Malaysia and Laos, each with approximately 20 GW, also offer substantial hydropower resources.
Harnessing hydropower in the East Asia and Pacific region can significantly decrease regional fossil fuel reliance,
contributing to carbon emission reduction, and fostering sustainable economic growth.
China has made huge commitments on PSH and hybrid solar-hydropower plants. Elsewhere in the region,
investment in PSH is evident with development of large PSH facilities across the region. Australia is developing
the Queensland’s Pioneer-Burdekin pumped hydro project and in French-Polynesia, the Fa'atauti'a is undergoing
modernisation.
Semangka, Indonesia
Credit: Voith Hydro
East Asia and Pacific latest developments
Australia
Australia continues to promote clean energy and to
phase out coal capacity, with energy storage playing
a critical role in its push towards a renewable energy
Right bank main power
future in the country. The Queensland Premier has house of Baihetan
hydropower project,
allocated another A$13m in the state budget to The 16 GW Baihetan hydropower station, now the
China
accelerate key technical studies to enable a final second largest hydropower project in the world in terms Credit: CTG
investment decision to advance the 1 GW/24 GWh of total installed capacity, became fully operational in
Borumba PSH project near Gympie in the state’s south- December 2022.
east. Finally, Yalong Hydropower is building a 1 GW solar park,
Queensland’s mid-coast is set to provide 5 GW of Kela Photovoltaic Power Station that will be connected
storage – enough to supply half of Queensland’s entire to an operational 3 GW Lianghekou hydropower facility
energy needs. Stage one of the Pioneer-Burdekin on the Yalong River in Southwestern China. Upon
pumped hydro project, said to be part of the largest completion, this new hybrid PV-hydropower complex
pumped hydro energy storage scheme in the world will be the world's largest power plant of its kind.
(according to Queensland’s premier), was announced The hydropower side of the project has an adjustable
in September 2022 and is estimated to be completed in capacity of up to 6.56bn cubic metres of water.
2032, with the final stage operational by 2035. French Polynesia
China In French Polynesia, planning for the modernisation of
In 2022, China added over 15 GW to its conventional the Fa'atauti'a 2 hydroelectric power plant in 2024 and
hydropower capacity and a further 8.7 GW of PSH. 2025 is a key priority. It was built and commissioned in
Furthermore, the National Energy Administration 1984, with a capacity of 960 kW. With a total production
published their mid-term and long-term plans from since its commissioning of 128 GWh and an average of
2021 to 2035 for PSH development which would see 3.5 GWh per year, this plant alone ensures an annual
installed PSH capacity at least 62 GW in 2025, and production equivalent to the consumption of the island
around 120 GW in 2030, from the present 44.7 GW. of Nuku Hiva.
East Asia and Pacific latest developments
Laos
Laos added 1,100 MW to its hydropower capacity. The
Nam Theun 1 Hydropower Project started commercial Philippines
operation with a 177m dam located on the Nam Kading Filipino Infrastructure developer Prime Infra is in the
River in Bolikhamxay Province. The dam has a total pre-development stage of the 500 MW Wawa PSH
installed capacity of 650 MW, of which a total of 520 project in the Rizal province, with construction due to
MW will be exported to Thailand and 130 MW will be start in 2023. This project has an estimated investment
for domestic consumption. The Nam Theun 1 is the last cost of US$1bn and is seen as one of the Philippines’
project to be developed in the Nam Theun-Nam Kading most strategically important power generation assets
hydropower cascade scheme in Laos. in terms of ensuring the immediate reduction of power
prices. Wawa is intended to help support the Philippine
The Nam Theun 1 Power Company project is a joint
government’s push toward tripling the country’s green
venture between Phonesack Group (32 per cent),
energy generating capacity by 2030 by providing grid
Chaleun Sekong Energy Company (28 per cent),
stability.
Electricity Generating Public Company of Thailand (25
per cent), and Electricité du Laos (15 per cent). China’s In 2022, the Filipino Government increased its original
state-owned Sinohydro Bureau 3 was also engaged energy target for the share of renewable energy to 35
in civil works for the project. The cost of the project is per cent by 2030 and 50 per cent by 2040. Additional
estimated at US$1,335m with major financing provided targets including a 12 per cent reduction in CO2. The
Penstock inspection in progress,
Bakun HEP, Malaysia
by Bangkok Bank, Export-Import Bank of Thailand, Siam Laguna PSH project was announced in October 2022,
Credit: Sarawak Energy Commercial Bank and TISCO Bank. with a capacity of 800 MW and a cost of US$1.3bn.
East Asia and Pacific Case Study

The State Grid Corporation of China announced the Not only is it the world’s biggest pumped storage
operation of the 3.6 GW Fengning Pumped Storage project, but it also has 190 caverns, making it one of
Power Station in 2022. The station is likely to be the the largest underground factories in the world. It is also
world’s biggest pumped storage project (despite one of the world’s first pumped storage power stations
healthy competition from Queensland). It was connected to the flexible DC grid, due to a connection
developed in two phases with a 1.8 GW capacity per made to the Zhangbeirou DC converter station. The
phase, by the State Grid Xinyuan Company, a directly plant’s first operational units provided 600 MW of
Construction is expected to be completed by the
managed subsidiary of the state-owned State Grid capacity to Beijing and Zhangjiakou, the host cities of
end of 2026 and will generate an average annual
Corporation of China. State Grid Xinyuan Company the Winter Olympics.
energy supply of 1,523 GWh. announced a feed-in tariff quota application for small manages and operates the facility. Fengning is
Thailand hydropower resources. In 2022 it was announced that reportedly the first hydroelectric facility in China to
In Thailand, the Electricity Generating Authority 127 MW of small hydropower projects became qualified integrate variable speed technology for efficient power
of Thailand is focusing on expanding its pumped for the scheme. generation.
storage capacity to increase the security of the The 1,285MW Baleh Hydroelectric Project has been
system during peak demand and allow for the commissioned for completion in 2027. The hydropower
greater integration of variable renewable energy. It facility is being developed by Sarawak Energy Berhad
currently operates three facilities totalling 1.53 GW Power. The main civil works are being jointly conducted
and is reviewing the feasibility of six further projects by China Gezhouba Group Company Ltd and local firm
including the proposed 900 MW Vajiralongkorn Untang Jaya Sdn Bhd.
pumped storage project in Kanchanaburi
Vietnam
Province. The main goals of this feasibility study
Hydropower sources in Vietnam have the potential to
include conducting geotechnical and geological
produce up to 40 GW of electricity. The total capacity of Interesting fact
investigations of the project site and developing a
hydropower, including small hydroelectricity plants, is
high-level conceptual design for the PSH plant. The
expected to reach almost 30 GW by 2030. As the world's largest archipelago, Indonesia has over 600 lakes, dams and reservoirs which could potentially be
planned open-loop project is currently projected
to be developed between 2029 and 2036 at an In 2022, the country added 33 MW installed capacity for used for floating PV farms. Deploying floating PV systems on these water bodies will not only help conserve the
estimated cost of Baht 32bn (US$938.4m). conventional hydropower with the completion of the country’s land resources but can also offer additional benefits such as preserving water quality and protecting
Dak Di 1 Hydro Power Plant. these ecosystems from rising temperatures and water evaporation.
Malaysia The Sustainable Energy Development
Authority (SEDA) in Malaysia has set an ambitious According to the newly published “Power Development Work has begun on the construction of up to 60 floating PV plants in Indonesia. Cirata Floating Solar plant is one
target to attract new investments and create more Plan VIII”, the Vietnamese Government is prioritising of these, with a capacity of 145 MW on a 250-hectare plot of the 6,200-hectare Cirata Reservoir in the West Java
jobs in Malaysia's renewable energy sector. SEDA multi-purpose and PSH projects. region, it is reported to become the biggest in Southeast Asia.

East Asia and Pacific

19
Installed Installed
Rank Country/Territory capacity (MW)* Rank Country/Territory capacity (MW)* Key
1 China 414,811 11 Philippines 4,520
10 199 MW and below
2 Japan 49,643 12 Thailand 4,515
2
3 Vietnam 17,366 13 Myanmar 3,331 200 MW to 1,999 MW
7
1
4 Laos 9,208 14 Cambodia 1,332
2,000 MW to 9,999 MW
5 Australia 8,576 15 Papua New Guinea 234
6 Indonesia 6,602 16 Fiji 125 10,000 MW to 19,999 MW
13
7 South Korea 6,541 17 New Caledonia 82 4
20,000 MW and above
8 Malaysia 6,372 18 French Polynesia 48 12
9 New Zealand 5,342 19 Mongolia 23 14 11
3
10 North Korea 5,010 20 Samoa 12
6
15
20
16 18
17
Top 5
countries
by capacity
added in 1st 2nd 3rd 9
2022 China Laos Vietnam
23,811 MW 1,100 MW 33 MW

67 2023 World Hydropower Outlook Practical solutions for the future development of sustainable hydropower
Practical solutions for the

future development of sustainable hydropower
This section summarises the policy recommendations provided throughout Outlook.
Three key aspects associated with hydropower development that it is urgent for today’s energy Hydropower Governments can encourage
policies to focus on: Potential: development by:
Incentivise sustainable hydropower development through financial and market There is more than enough hydropower potential to Ensuring regulatory and licensing regimes are fit
mechanisms that reward flexibility. To meet the objectives of the Paris Agreement and the UN achieve the net zero targets set by IEA and IRENA for for purpose and do not disincentivise investment by
Sustainable Development Goals, IEA estimates that investment in hydropower needs to double 2050. More importantly, around half of the economically station owners or operators;
to US$100bn a year. This cannot happen without appropriate financial and market frameworks feasible hydropower potential remains untapped. This Ensuring that electricity markets remunerate the
to incentivise new investment. potential can be achieved through four broad actions: flexibility and the dispatchability that modernised
Accelerate the development of renewables through streamlined permitting and licensing. • developing new hydropower, hydropower facilities can excel in providing, to
Hydropower planning and approval processes typically take more than five years before a safeguard grid stability;
• developing PSH,
project can even begin construction. Meanwhile, the default option is often to fall back on fossil Providing long term visibility of revenues including
• modernising existing infrastructure, and
fuels. The massive deployment of renewables needed to meet global climate goals through through long term contracts, that will further incentivise
sustainable development should be accelerated by streamlining these processes wherever • retrofitting non-powered dams. investment.
possible.
Embed hydropower sustainability practices in government regulation. Accelerating
development does not mean cutting corners. Application of the Hydropower Sustainability
Standard, built and governed through multi-stakeholder consensus, should be integrated into
regulatory frameworks to maximise the benefits of projects and mitigate any negative impacts.

68 2023 World Hydropower Outlook Practical solutions for the future development of sustainable hydropower
Pumped Storage Hydropower Non-powered dams Murum Hydroelectric Plant, Malaysia

Credit: Sarawak Energy
recommendations: recommendations:
Comprehensive Planning. Policymakers must Support research and development of innovative
anticipate long-term clean electricity requirements, technologies which could help to lower the costs of
considering the need for storage to support the retrofitting non-powered dams.
integration of a high share of variable renewables into
the energy mix. Improve existing processes to streamline hydropower
licensing, relicensing, and license surrender, making
Site Identification. A systematic mapping and them more efficient and responsive to the needs of
assessment of existing and potential hydropower retrofitting non-powered dams.
sites suitable for PSH is necessary to guide sustainable
infrastructure development and inform energy policy Increase financial support for dam rehabilitation and
decisions. retrofitting projects. This could be facilitated through
greater budget allocations, tax incentives, or low-
Financial Frameworks. Policymakers must construct interest loans specifically designed for these initiatives.
robust financial policy mechanisms that incentivise
PSH and enable long-term revenue visibility. Electricity Floating Solar
markets should reward grid stability contributions recommendations:
provided by PSH. PSH could also be included in green Governments wanting to enable FPV should prioritise
finance initiatives. the following areas:
Sustainability Assessment. Rigorous sustainability Promote research to further understand the

evaluations using internationally recognised assessment environmental impacts of FPV facilities.
tools should be integrated into development processes. Develop standards and regulatory guidelines to
manage the risks in installation.
Promote a better regulatory and policy environment
to facilitate project development.

69 2023 World Hydropower Outlook Installed capacity and generation 2022
Installed capacity and generation 2022

North and Central America Africa Europe
Total installed capacity including pumped storage Pumped Generation Total installed capacity including pumped storage Pumped Generation
Country/Territory (MW) (MW) (TWh) Country/Territory (MW) (MW) (TWh) Total installed capacity including pumped storage Pumped Generation
Anguilla 0 0 0 Algeria 269 0 <1 Country/Territory (MW) (MW) (TWh)
Antigua and Barbuda 0 0 0 Angola 3,836 0 11 Albania 2,203 0 7
Aruba 0 0 0 Benin 33 0 <1 Andorra 45 0 <1
Bahamas 0 0 0 Botswana 0 0 0 Austria 14,836 5,596 36
Barbados 0 0 0 Burkina Faso 34 0 <1 Belarus 96 0 <1
Belize 55 0 <1 Burundi 72 0 <1 Belgium 1,493 1,308 <1
Bermuda 0 0 0 Cameroon 822 0 6 Bosnia and Herzegovina 2,230 440 5
Canada 83,312 177 392 Cape Verde 0 0 0 Bulgaria 2,916 1,404 4
Cayman Islands 0 0 0 Central African Republic 19 0 <1 Croatia 2,155 281 5
Costa Rica 2,331 0 9 Chad 0 0 0 Cyprus 0 0 0
Cuba 65 0 <1 Comoros 1 0 0 Czechia 2,290 1,172 2
Dominica 7 0 0 Congo 218 0 1 Denmark 7 0 0
Dominican Republic 623 0 1 Cote D’Ivoire 879 0 3 Estonia 4 0 0
El Salvador 572 0 2 Democratic Republic of the Congo 2,760 0 15 Faroe Islands 39 0 <1
Grenada 0 0 0 Djibouti 0 0 0 Finland 3,246 0 13
Guadeloupe 11 0 0 Egypt 2,876 0 14 France 25,669 5,050 50
Guatemala 1,513 0 7 Equatorial Guinea 128 0 <1 Germany 11,471 6,414 17
Haiti 78 0 <1 Eritrea 0 0 0 Gibraltar 0 0 0
Honduras 849 0 4 Eswatini 61 0 <1 Greece 3,421 699 5
Jamaica 30 0 <1 Ethiopia 4,824 0 14 Greenland 91 0 <1
Martinique 0 0 0 Gabon 331 0 2 Hungary 58 0 <1
Mexico 12,614 0 35 Gambia 0 0 0 Iceland 2,086 0 14
Montserrat 0 0 0 Ghana 1,584 0 7 Ireland 508 292 <1
Nicaragua 159 0 <1 Guinea 1,156 0 2 Italy 22,635 7,891 30
Panama 1,845 0 8 Guinea-bissau 0 0 0 Kosovo 92 0 <1
Puerto Rico 98 0 0 Kenya 837 0 4 Latvia 1,588 0 3
Saint Bartholemy 0 0 0 Lesotho 73 0 <1 Liechtenstein 35 15 <1
Saint Kitts And Nevis 0 0 0 Liberia 93 0 <1 Lithuania 1,028 900 <1
Saint Lucia 0 0 0 Libya 0 0 0 Luxembourg 1,332 1,296 <1
Saint Pierre And Miquelon 0 0 0 Madagascar 214 0 1 Macedonia 644 0 1
Saint Vincent And The Grenadines 6 0 0 Malawi 391 0 1 Malta 0 0 0
Trinidad And Tobago 0 0 0 Maldives 0 0 0 Moldova 64 0 <1
Turks And Caicos Islands 0 0 0 Mali 360 0 <1 Monaco 0 0 0
United States 102,009 22,008 262 Mauritania 48 0 <1 Montenegro 649 0 1
Virgin Islands, British 0 0 0 Mauritius 61 0 <1 Netherlands 38 0 <1
Virgin Islands, U.S. 0 0 0 Morocco 1,770 465 2 Norway 33,807 1,441 129
Mozambique 2,216 0 14 Poland 2,376 1,591 2
Total 206,175 22,185 723 Namibia 347 0 1 Portugal 8,252 3,754 9
Niger 0 0 0 Romania 6,229 92 14
Nigeria 2,111 0 8 San Marino 0 0 0
South America Reunion
Rwanda
134
117
0
0
0
0
Serbia
Slovakia
3,166
2,476
642
1,017
9
3
Sao Tome And Principe 2 0 0 Slovenia 1,307 180 3
Total installed capacity including pumped storage Pumped Generation Senegal 81 0 <1 Spain 20,425 6,164 19
Country/Territory (MW) (MW) (TWh) Seychelles 0 0 0 Sweden 16,391 91 70
Argentina 11,359 974 31 Sierra Leone 64 0 <1 Switzerland 17,756 4,419 34
Bolivia 759 0 3 Somalia 0 0 0 Turkey 32,130 0 66
Brazil 109,778 20 423 South Africa 3,600 2,912 6 Ukraine 6,317 1,488 11
Chile 7,289 0 20 South Sudan 0 0 0 United Kingdom 4,723 2,833 5
Colombia 12,563 0 64 Sudan 1,923 0 8
Ecuador 5,191 0 25 Tanzania 562 0 2
Total 258,324 56,470 569
French Guiana 119 0 1 Togo 49 0 <1
Guyana 3 0 0 Tunisia 66 0 0
Paraguay 8,810 0 41 Uganda 1,095 0 4
Peru 5,515 0 30 Western Sahara 0 0 0
Suriname 180 0 1 Yemen 0 0 0
Uruguay 1,538 0 6 Zambia 3,153 0 15
Venezuela 16,829 0 68 Zimbabwe 1,081 0 5
Total 179,933 994 712 Total 40,349 3,377 150
70 2023 World Hydropower Outlook Installed capacity and generation 2022
South and Central Asia East Asia and Pacific World

Total installed capacity including pumped storage Pumped Generation
Total installed capacity including pumped storage Pumped Generation Country/Territory (MW) (MW) (TWh) Total installed capacity including pumped storage Pumped Generation
Country/Territory (MW) (MW) (TWh) (MW) (MW) (TWh)
American Samoa 0 0 0
Afghanistan 461 0 <1 Australia 8,576 2,461 17 Total 1,397,415 175,060 4,408
Armenia 1,324 0 2 Brunei 0 0 0
Azerbaijan 1,155 0 2 Cambodia 1,332 0 6
Bahrain 0 0 0 China 414,811 44,741 1354
Bangladesh 230 0 <1 Taiwan (China) 4,689 2,596 7
Bhutan 2,335 0 11 Cook Islands 0 0 0
Georgia 3,459 0 11 Fiji 125 0 <1
India 51,786 4,746 175 French Polynesia 48 0 <1
Iran 12,543 1,040 15 Guam 0 0 0
Iraq 2,756 240 7 Hong Kong 0 0 0
Israel 307 300 0 Indonesia 6,602 0 19
Jordan 12 0 0 Japan 49,643 27,470 99
Kazakhstan 3,087 0 10 Kiribati 0 0 0
Kuwait 0 0 0 Laos 9,208 0 38
Kyrgyzstan 3,952 0 12 Macau 0 0 0
Lebanon 282 0 <1 Malaysia 6,372 0 16
Nepal 2,162 0 3 Marshall Islands 0 0 0
Oman 0 0 0 Micronesia, Federated States Of 0 0 0
Pakistan 10,649 0 36 Mongolia 23 0 <1
Qatar 0 0 0 Myanmar 3,331 0 8
Russia 55,819 1,385 219 Nauru 0 0 0
Saudi Arabia 0 0 0 New Caledonia 82 0 <1
Sri Lanka 1,859 0 7 New Zealand 5,342 0 24
Syria 1,505 0 <1 Niue 0 0 0
Tajikistan 6,484 0 21 North Korea 5,010 0 13
Turkmenistan 5 0 0 Papua New Guinea 234 0 <1
United Arab Emirates 0 0 0 Philippines 4,520 735 9
Uzbekistan 2,081 0 7 Samoa 12 0 36
Total 164,253 7,711 539 Singapore 0 0 0
Solomon Islands 0 0 0
South Korea 6,541 4,790 8
Thailand 4,515 1,531 7
Timor-leste 0 0 0
Tonga 0 0 0
Tuvalu 0 0 0
Vanuatu 0 0 0
Vietnam 17,366 0 53
Total 548,381 84,324 1714

Acknowledgements
Researched, written, edited and produced by the team at IHA.
Photographs: Contributors: Sponsor: Disclaimer Media enquiries:

ANDRITZ Hydro International Energy Agency Bechtel With respect to any information available from this publication, neither [email protected]
Bizbell African Development Bank IHA, nor its employees or members make any warranty, express or implied,
CTG Supporting Sponsors: including warranties of merchantability and fitness for a particular purpose,
Drax Hydro Southern Company nor does IHA assume any legal liability or responsibility for the accuracy,
EDP Sarawak Energy completeness, or usefulness of any information, product, or process
Erhard by Talis Voith disclosed, nor does IHA represent that its use would not infringe upon
Hidroeléctrica de Cahora Bassa Adaro privately owned rights.
Hydro Quebec EDF
Mainstream Energy Solutions
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1 2023 World Hydropower Outlook

International Hydropower Association hydropower.org

Roger Gill Eddie Rich

International Hydropower Association hydropower.org

This first edition of the World Hydropower Outlook looks

+3.7% +2.7% +6%

1 Incentivise sustainable hydropower development through financial and

Credit: Erhard by Talis

3 Embed hydropower sustainability practices in government regulation.

capacity (630 GW) is over 30 years of age, and almost

Dhaulagiri Rural Municipality , Myagdi District, Nepal

International Hydropower Association hydropower.org

Book your place now

International Hydropower Association hydropower.org

against net zero

Hydropower’s contribution estimate that to achieve a net zero economy, global

Both IRENA and IEA show that substantial amounts of

Share of global electricity

Other dispatchable renewables

International Hydropower Association hydropower.org

North America Europe 19.86

3.49 2.78 1.23

Latin America Africa and Middle east Oceania/

where are the opportunities?

East Asia and Pacific** 1100 464

South and Central Asia** 600 157

North & Central America 620 184

South America 500 179

Europe 350 202

International Hydropower Association hydropower.org

hydropower potential. The Australian National

• Comprehensive Planning: policymakers must zero.

What is currently in the new

Current global hydropower projects pipeline by project status

International Hydropower Association hydropower.org

Considering Africa’s high

Current regional hydropower projects pipeline by project type* (GW)

Existing fleet Pipeline Gap to IEA NZE

International Hydropower Association hydropower.org

Recommendations How can we unlock

Cruachan turbine hall, Scotland

International Hydropower Association hydropower.org

The carbon calculator

Find out more at g-res.hydropower.org

Priority policy themes

Climate resilience generated by hydropower, these regions noticed the

International Hydropower Association hydropower.org

International Hydropower Association hydropower.org

Floating solar and hybrids

International Hydropower Association hydropower.org

Floating Solar around the world Recommendations

Brazil Brazil Ghana Uganda Pakistan India India Indonesia Malaysia

The Hydropower Sustainability Standard:

Case study: The Sebzor hydropower project –

Hydropower Bank’s Energy Sector Management Assistance Program

sector employment across the sector and provide concrete

Hydropower Cahora Bassa, an Accredited Assessor and the HS

International Hydropower Association hydropower.org

Global trends Baihetan

Canada Portugal Switzerland Turkey Pakistan Meizhou Wuhua

Gouvaes 1,500 1,200 1,200

Yangjiang Fengning Meizhou Wuhua Jinzhai

Changlongshan Nant-de-Drance Huanggou

880 800 720

1 Incentivise sustainable hydropower development through financial and