Hydropower Market Outlook - The market outlook is positive, supported by government initiatives for clean energy and modernization of existing hydro plants.

The Hydropower Market Outlook remains cautiously optimistic, with global capacity projected to increase by approximately 17% through 2030. While the rate of net capacity additions is expected to slow compared to the previous decade, the quality and strategic value of new additions will increase. PSH is the clear growth champion in terms of strategic importance, with its capacity expected to accelerate significantly.

Investment will be bifurcated: large, new reservoir projects in developing economies and substantial modernization spending in advanced economies. The outlook is heavily reliant on governments recognizing hydropower's essential role in grid stability and providing supportive policies, such as specific incentives for storage and refurbishment.

FAQ on Hydropower Market Outlook
Is global hydropower capacity expected to grow or shrink over the next decade? Global hydropower capacity is expected to grow, primarily driven by PSH and new projects in Asia and Africa, though the rate of growth is projected to be slower than in the recent past.

What percentage of future investment is expected to go towards modernization? A significant portion, with some forecasts suggesting up to a quarter or more of global hydropower investment through 2030 will be dedicated to modernizing and extending the life of existing plants, especially in Europe and North America.

How does climate change affect the market outlook? Climate change introduces increased volatility (droughts and extreme floods). This emphasizes the value of reservoirs for managing water resources but also necessitates building resilience through better climate modeling, water resource management, and flexible operation of existing assets.