Association spotlight |


Unlocking UK hydropower


Will Gallimore of the British Hydropower Association examines how hydropower is


evolving from a legacy energy source into a critical pillar of the UK’s low-carbon future, while highlighting the policy and market reforms needed to unlock its full potential


Below top: Knoydart Community Hydropower scheme in the Scottish Highlands, a locally owned run-of-river project demonstrating how small-scale hydro can deliver reliable, low- carbon energy while supporting remote communities


Below bottom: Loch Kemp pumped storage visualisation, illustrating a proposed long- duration energy storage scheme designed to provide grid stability and flexibility for a renewable- led UK power system


THE BRITISH HYDROPOWER Association (BHA) is a leading trade body representing the UK hydropower sector. It brings together developers, operators, investors and supply chain companies across run-of-river, pumped storage and tidal range technologies. The Association works to promote the role of hydropower in delivering a secure, low- carbon electricity system, engaging with government and regulators to ensure that policy and market frameworks support the long-term deployment of these technologies.


The changing role of the association Formally established in 2006, the Association is


a continuation of the former National Association of Water Power Users, reflecting a sector that has been organised and represented for many decades


in one form or another. For much of its earlier life, this meant a primary focus on run-of-river schemes. Hydropower in the UK experienced a prolonged lull towards the end of the 20th century, as, with the roll out of the national grid, there was a reduction in new hydropower schemes being built and many hydropower schemes were paid to decommission. As we entered the 21st century and a new focus was brought to the negative environmental effects of gas and coal, the hydropower industry was revitalised by support mechanisms such as the Renewables Obligation Certificates and the Feed-in Tariff. These schemes unlocked investment, brought forward a new generation of smaller-scale projects, and re- established hydropower as a viable part of the UK’s renewable mix. This changing remit of the BHA is reflected in the composition of its Board. The Association draws on decades of combined experience across development, engineering, policy, and operations. In recent years, the Board has also evolved to better reflect the wider sector, with Joanna Gray bringing expertise in tidal range, alongside Mary Drury, our new Chair, who brings 30 years of hydropower experience and a strong focus on ensuring the UK deploys PSH to meet the Clean Power 2030 mission.


Run-of-river hydropower Despite over a century of hydropower operating


as the backbone of our electricity network, the sector faces a number of structural challenges, particularly for run-of-river hydropower. The operating environment is becoming increasingly constrained, with rising business rates, higher operating and maintenance costs, and growing regulatory burdens. At the same time, the closure of legacy support schemes such as the Renewables Obligation and the Feed-in Tariff will leave projects with a large revenue gap, and new schemes without a clear route to market.


In theory, Contracts for Difference should fill this gap. In practice, it does not. The scheme is designed around large-scale generation and competitive auctions and is not well suited to smaller, site-specific hydropower projects. As a result, hydropower finds itself in a difficult position. It is directed towards a support mechanism it cannot realistically access, while facing increasing financial pressure elsewhere. The BHA is actively working to address these issues. For run-of-river hydropower, this includes advocating for reforms to the Contracts for Difference and Capacity Market to better reflect hydropower’s characteristics and focusing on the potential to


32 | May 2026 | www.waterpowermagazine.com


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