Growth Opportunities in Hydropower, Global, 2024–2035

Growth Opportunities in Hydropower, Global, 2024–2035

Modernization, Hybridization, and Digital Technologies Drive Industry Development
Hydropower plays a critical role in facilitating the transition to a net-zero carbon future. As a renewable energy source, it contributes a significant 60% to global renewable energy production. During the past five decades, hydropower has demonstrably mitigated climate change by preventing more than 100 billion tons of carbon dioxide emissions, which solidified its importance in decarbonization strategies.

Digitalization and technological advancements are key to revitalizing aging dams and enhancing their integration into modern electrical grids. Despite hydropower’s established role, ongoing research and development efforts aim to improve its flexibility, efficiency, and cost-effectiveness to guarantee its viability alongside emerging renewable technologies.

Small hydropower projects offer modular solutions that bring renewable energy within reach of remote areas and foster local economic development and employment opportunities. Integration with technological advancements such as network sensors, data analytics, and advanced weather forecasting can further enhance hydropower's competitiveness and sustainability, thereby ensuring reliability amidst variable weather conditions.

Looking ahead, integrating hydropower with other renewable sources such as solar and wind will prove critical in achieving energy transition goals, providing essential energy storage capabilities, and enhancing grid stability. As countries diversify their energy portfolios, hydropower remains a cornerstone technology, poised to play a pivotal role in building a cleaner, more sustainable energy future.