- Rystad Energy aims at $36.3billion in investments.
- Hydropower contributes nearly 60% more to power generation than nuclear energy and other renewables combined.
- Global hydropower set for 75 per cent growth from 2000.
According to Rystad Energy research, the hydropower market will continue to grow in 2022, with a global capacity exceeding 1,200 GW for the first time and investments reaching $36.3 billion. In addition, as the energy transition accelerates and countries seek dependable, large-scale infrastructure projects to meet future demand, hydropower is cementing its position as the most popular renewable energy source, according to Rystad.
Hydropower is responsible for nearly one-sixth of global power generation, trailing only coal and natural gas. In addition, the industry contributes almost 60% more to power generation than nuclear energy and more than all other renewables combined, including wind, solar photovoltaics (PV), bioenergy, and geothermal. Hydropower generation increased slightly in 2021 to 4,414 TWh, up from 4,360 TWh in 2020, while a capacity of nearly 17GW was added in 2020, with 14GW coming online in 2021 Rystad Energy states.
Investment in the sector slowed slightly before 2020 as other renewable sources such as wind and solar PV gained traction. This was exacerbated by delays in several major hydropower projects and some regions’ lack of policy changes. However, the industry is experiencing a renaissance as countries become more motivated to find suitable renewable options to decarbonize their energy supply.
“Hydropower has been increasing since the 1970s and is the backbone of low-carbon electricity generation. Over the last two decades, installed global hydropower capacity has increased by more than 75 per cent, from 680 GW in 2000 to nearly 1,200 GW in 2021,” says Rystad Energy Analyst Karan Satwani.