Global Small Hydropower Market - 2022-2029

Global Small Hydropower Market - 2022-2029

Market Overview

The global small hydropower market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.

The market responsible for creating hydroelectric electricity on a small scale to serve a local community or industrial operation is known as small hydropower. Although the definition of a small hydro project varies, a production capacity of up to 25 megawatts (MW) is commonly considered the maximum limit of what can be called Small Hydro. Because of its high position, the potential energy of water is turned into electrical energy in hydroelectric power plants. The total capacity of hydroelectric power plants is determined by the head of water and volume of water flowing towards the water turbine.

Engineering, design, model testing, purchasing, manufacturing, assembly, project management, site management, installation, commissioning, testing and staff training are provided for all mechanical and electrical equipment such as hydraulic turbines, shut-off valves, synchronous and asynchronous generators, automation, control, protection, excitation and synchronization equipment and electrical power systems.

Market Dynamics

The growing energy demand and rising investments in hydropower drive the market.

Growing energy demand and rising investments

Industrialization is quickly gaining traction worldwide, driving up industrial power consumption. Manufacturing and process sectors are expanding rapidly in both developed and developing countries. The expansion of manufacturing and process industries increases energy consumption, thereby raising the demand for energy production. Increasing energy demand due to the world's growing population and the need to reduce the reliance on traditional forms of power generation has motivated the industry to employ renewable power sources, such as small hydropower energy.

United Nations Industrial Development Organization (UNIDO) and The Federal Energy Regulatory Commission (FERC) have been compelled to adopt certain renewable energy measures, such as policies by the Federal Energy Regulatory Commission, due to the growing demand for energy, climate change and to encourage renewable sources of energy in response to greenhouse gas emissions caused by rising power consumption.

Small hydropower plants are built and developed to help remote locations produce energy. As a result, these plants can be grid-connected or off-grid; off-grid is best suited for areas where grid connectivity is unavailable. Governments' energy policies vary in capital cost on total electricity output, community resettling, safety and human resources required to develop and run power plants. Small hydropower facilities are intended to reduce high capital costs while minimizing the public's environmental effect. Furthermore, the operation of the abandoned hydropower site is another valuable aspect that will influence market growth.

COVID-19 Impact Analysis

The COVID-19 pandemic had a detrimental impact on the global growth of the small hydropower sector. The transit of raw materials and components was substantially impeded in the second quarter of 2020 because of rigorous lockdown measures enacted by governments.

The maintenance of current projects and construction of new ones are expected to be delayed due to the COVID-19 crisis. Due to the unstable market and changes in the global economy and raw material prices, expected investment plans in small hydropower projects were significantly impacted in 2020. While global demand for renewable energy is likely to continue to rise.

Furthermore, due to market uncertainties, shifting global economy and raw material prices, investments in small hydropower projects are projected to suffer in 2020. While global demand for sustainable energy is projected to remain strong in the coming years, the small global hydropower industry is expected to show indications of recovery in the final two quarters of 2020 as governments continue to reduce tight restrictions.

Segment Analysis

The global small hydropower market is classified based on capacity, type, component and region.

Ability to meet essential energy requirements with minimal investment

The global market is divided into Up to 1 MW and 1–10 MW, depending on the capacity. Small hydropower plants with a 1 – 10 MW capacity dominate the market because the investment costs per kW of 1 – 10 MW small hydropower plant projects are lower than those of less than 1 MW small hydropower. Further, small hydropower with a capacity of 1 – 10 MW has a higher head and installed capacity and could produce a sufficiently high amount of electricity to meet the growing energy demand.

The Levelized Cost of Electricity (LCOE) for 1 – 10 MW small hydropower is lower than for less than 1 MW small hydropower. The operating and maintenance costs of 1 – 10 MW small hydropower are lower than those of less than 1 MW small hydropower. The rise of the 1 – 10 MW SHP market is significant due to lower total costs when compared to small hydropower below 1 MW.

Geographical Analysis

Large scale decarbonization of the energy sector and heavy governmental and private investments

In the global small hydropower industry landscape market, Asia-Pacific dominates the regional segment of the market. China has dominated the regional market share, owing to the Chinese government's long-standing commitment to small hydropower development. The initial goal of SHP construction in China was to provide energy to mountainous areas in conjunction with small-scale water conservation initiatives. According to our market analysis, the Pacific area has the lowest share of small hydropower installed capacity, whereas Asia has the highest percentage of small hydropower installed capacity. More than 65% of the world's installed capacity is located in Asia and the Pacific.

Small hydropower is less developed in Japan and India, with 35% and 18% of small hydropower potential, respectively. Government programs sun's Small Hydro Power (SHP) Programme is expected to boost small hydropower in India. In India, central government is promoting renewable energy sources for mini-grid and off-grid uses, such as small hydropower, solar and wind.

Competitive Landscape

The small hydropower market is a niche one in terms of the number and scope of global and local producers. Because of only a limited number of players, such as Voith andRITZ, Siemens, Toshiba, BHEL, SNC-Lavalin, HNAC Technology, Gilbert Gilkes & Gordon Ltd Mavel and HM Hydro, the market has been described as consolidated. Mergers, acquisitions, product launches, investments and collaborations are common market strategies used by big market players to achieve a competitive advantage and improve their reputation.

Siemens

Overview: Siemens offers power and energy solutions to companies in the energy and electricity industry. The company develops and builds fossil fuel power plants and power-generating components, as well as offers gas turbines, steam turbines, generators, gas turbine packages, steam turbine packages, compressors, fans, instrumentation and controls, electrical systems, wind turbines, fuel cells, fuel gasifiers, turbochargers and environmental systems. The company serves power, oil and gas, air separation, building complexes, ceramics, chemicals, food and beverage, manufacturing, marine, metals, pulp and paper, textiles and sugar industries. The company is based in Erlangen, Germany, with locations in Canada, Mexico, the United States, Brazil, Saudi Arabia, China and other countries.

Product Portfolio:

SGT-800: A pre-installed, highly dependable combined cycle power plant coupled with an SGT-800 solution in the SeaFloat application is ideal for places with limited space. The land acquisition does not require large sums of money. Depending on the plant configuration, the power output ranges from 150 MW to 450 MW, including our dependable steam turbine SST-600 and associated generators. The SGT-800-based SeaFloat solution is ideal for developing isolated locations because of its high efficiency, even at part load and ease of maintenance. The power plant has been pre-designed and is plug-and-play ready. They are cutting-edge industrial application solutions.

SGT-8000H: Siemens' high-end SGT-8000H gas turbine comes in 2x1 and 1x1 combined cycle designs and has the largest power density of up to 1,330 MW and a plant efficiency of over 61 percent. The power plant uses the SST-5000 steam turbine, the SCon-4000 condenser, the SGen-100A and SGen-2000P generators and has designed HRSGs to primarily replace older plants such as nuclear and coal-fired power plants without the normal brownfield risk. Due to the quick offsite manufacture of an efficient SeaFloat power plant, the existing asset can continue to operate. Compared to a brownfield land-based power plant involving destruction and relocation of existing site infrastructure, the SeaFloat application could result in a 20 percent quicker project schedule. It has the potential to cut CAPEX costs by 20%.

Key Development:

On October 22, 2021, Siemens sold its 35% stake in Voith Siemens Hydro Power Generation GmbH & Co. KG, a hydropower firm established in 2000. The companies reached an agreement on the buyout of Siemen's investment by Q1 2022. The decision, according to Voith, is in line with the firm's continuous plan to enhance its core business of sustainable technologies and will allow the company to continue to benefit from hydroelectric power's rising role in the renewable energy mix.

Why Purchase the Report?

To visualize the global small hydropower market segmentation based on capacity, type, component and region, as well as understand key commercial assets and players.

Identify commercial opportunities in the global small hydropower market by analyzing trends and co-development.

Excel data sheet with numerous data points of small hydropower market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Product mapping available as excel consisting of key products of all the major market players

The global small hydropower market report would provide approximately 62 tables, 55 figures and almost 182 pages.

Target Audience 2023

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies