The latest World Hydropower Outlook, which is published by the International Hydropower Association, shows that in 2023, hydropower capacity, the largest single source of renewable energy, grew by 13.5 GW to 1412GW, of which pumped storage (PSH) grew by 6.5 GW to 182 GW. But overall, there is an average downward trend for hydropower which risks energy systems missing global targets for decarbonisation by 2050.

The outlook states that with increasing global interest in hydropower, action is needed from governments to convert interest into new projects. To 2030 about 25 GW per year is required for hydropower to contribute to the ‘tripling up’ objective agreed at COP28. After that, if net zero is to be achieved, delivery needs to more than double and this rate needs to be sustained until 2050.

IHA’s assessment of the ‘big 100’ pipeline of projects under development indicates that this acceleration is within reach for the early years of the next decade, but more action is needed to raise this rate of delivery further. Ultimately, the world needs more hydropower projects, done better and delivered faster.

Eddie Rich, CEO of IHA commented: “Hydropower is the backbone to a reliable energy and water system. As well as providing electricity, it provides storage, flexibility, reliability to support solar and wind, access to clean water, irrigation, and drought and flood control.

“Whether we like it or not, more droughts and floods due to climate change will mean an increased need to invest in water infrastructure such as dams and reservoirs. Where possible these should be powered.”

“This report shows how investments are lagging behind and development has slowed down in the past decade. On the positive side, there is a healthier pipeline and pumped storage hydropower is experiencing a renaissance. Its potential to shore up the energy grid is increasingly recognised.”

Malcolm Turnbull, IHA president, said: “The more variable power that is developed through solar and wind, the more hydropower will be required to provide balance and flexibility … governments need to plan for long term energy needs, including a balanced mix of renewable energy, for both generation and long duration storage.”

Global hydropower in numbers       

  • China, Brazil, US, Canada and Russia were the top five countries for installed hydropower capacity in 2023.  Almost half new installed capacity in 2023 was in China.
  • Europe is focused on modernisation of existing hydropower and pumped storage hydropower development as part of its target of 42.5% renewable energy by 2030.
  • In Africa, hydropower already provides 40% of sub-Saharan Africa’s power but 90% of the continent’s potential has yet to be tapped.
  • In South America, hydropower contributes 45% of South America’s electricity supply and over 13GW of projects are in the pipeline.  
  • In Central America, hydropower accounts for over 30% of electricity production.
  • In the USA, there is huge potential for modernisation with roughly half of the non-federal fleet up for relicensing by 2035.
  • The IHA and the British Hydropower Association are planning a worldwide roadshow of regional events to discuss the findings in each region.