New opportunities |
Opening hydropower’s floodgates
Research by Rystad Energy says that hydropower investments are set to soar and drive global capacity upwards throughout the year
RYSTAD ENERGY RESEARCH SAYS that the hydropower market will continue its upward trajectory in 2022 as global capacity exceeds 1200GW for the first time and investments climb to US$36.3 billion. The independent energy research and business intelligence company explains that as the energy transition gathers pace and countries search for reliable, large-scale infrastructure projects to meet future demand, hydropower is solidifying its position as the most popular renewable energy source. Hydropower accounts for almost one-sixth of the world’s power generation, trailing only coal and natural gas. The industry’s contribution to power generation is nearly 60% higher than nuclear energy and greater than all other renewables combined, including wind, solar PV, bioenergy and geothermal. Power generated through hydropower rose slightly in 2021 to 4414TWh, up from 4360TWh in 2020, while capacity of nearly 17GW was added in 2020, followed by another 14GW in 2021. Investments in the sector slowed somewhat
before 2020 as other renewable sources such as wind and solar PV gained momentum, a situation exacerbated by delays to several major hydropower projects and some regions’ lack of policy changes, which also stunted growth. The industry is, however, experiencing a renaissance as countries are increasingly motivated to find suitable renewable options to decarbonise their energy supply. “Hydropower is the backbone of low-carbon electricity generation and has been rising since
the 1970s. Over the last two decades, the installed global capacity of hydropower has grown from 680GW in 2000 to nearly 1200GW in 2021, a surge of more than 75%,” says Rystad Energy analyst Karan Satwani.
Regional perspectives China remains the world leader in total installed
hydropower capacity with over 340GW, more than triple the capacity of runner-up Brazil with 112GW. The US (84GW), Canada (81GW) and Russia (50GW) round out the top-five list for hydropower generation globally, followed by India (47GW), Norway (33GW), Turkey (30GW) and Japan (23GW). In recent years, Asian and South American countries, led by China and Brazil, have driven global capacity additions while other continents have stayed relatively flat. Combined installed capacity in Asia has risen from 462GW in 2017 to an expected 514GW in 2022, whereas total capacity in South America has climbed from 175GW to an expected 192GW over the same period. Looking at 2022, China’s Baihetan hydropower
project, which began operations from two of its 16 units in June 2021, will be able to produce up to 16GW of energy annually once fully operational later this year. This will make it the second biggest hydroelectric project globally, eclipsed only by another Chinese mega-development, the Three Gorges Dam project in Hubei province. The Wudongde hydropower plant, another ambitious Chinese development, began full operations in
Right: Investments in hydropower have climbed to US$36.3 billion in 2022, new research from Rystad Energy suggests
22 | July 2022 |
www.waterpowermagazine.com
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