Hydropower

The global conventional hydropower market ⁱ added 7.2 GW of installed capacity in 2023 ⁱⁱ to reach a total of 1,237 GW, a capacity growth 67% lower than the previous year. ¹ The top four countries for cumulative installed hydropower capacity were China, Brazil, Canada, and the United States, which collectively had more than 50% of the global total. ² The top 10 countries for cumulative hydropower capacity represented 69% of the global total. ³ (See Figure 24.)

The top five countries for capacity additions in 2023 were Nigeria, Colombia, Lao People's Democratic Republic (PDR), China, and Nepal, with 41% of the global total. ⁴ (See Figure 25.) China installed just 530 MW of hydropower in 2023, after adding 13 GW (50% of all new capacity) in 2022. ⁵ More than half of the capacity added globally in 2023 was in Asia. ⁶ The top 10 markets for installed capacity – China, Brazil, Canada, the United States, the Russian Federation, India, Türkiye, Norway, Viet Nam and Japan – added a combined total of 1.6 GW during the year. ⁷

Global hydropower generation fell 5% in 2023 to 4,185 TWh; the decline was driven mainly by droughts in top hydropower-producing countries such as China, Canada and the United States. ⁸ Hydropower production in Europe rebounded slightly following the region's worst drought in 500 years in 2022. ⁹ Production in East and Central Africa also stabilised after record droughts in 2022. ¹⁰ The global capacity factor for hydropower – or the amount of energy produced per unit of power installed – was 39% in 2023, down 2% compared to 2022. ¹¹

FIGURE 24.Hydropower Global Capacity, Shares of Top 10 Countries and Rest of World, 2023

Regional Developments

Asia

China remained the world leader in cumulative hydropower capacity in 2023, with a 30% global market share and more capacity installed than in 95% of countries. ¹² Hydropower capacity growth is cyclical because of the multi-year nature of plant construction. After rapid growth in 2022, China's capacity in 2023 grew by only 530 MW, a 96% decline compared to 2022. ¹³ The country ended the year with just under 371 GW of total hydropower capacity. ¹⁴ In October 2023, the fifth 400 MW unit of the 2 GW Lijiaxia Hydropower Station began operation, representing the country's main capacity added. ¹⁵ Hydropower generation in China was down 16% for the year, driven largely by extreme drought conditions in southern provinces during the first half of 2023. ¹⁶

In Nepal, due to plentiful hydropower resources, the technology plays a vital role in producing nearly 100% of the country's electricity, and also supports the economy through the export of excess electricity to China and India. ¹⁷ Nepal's installed hydropower capacity in 2023 totalled 2.6 GW, with an additional 4.4 GW under construction, nearly double the country's current capacity. ¹⁸

In 2023, Lao PDR added 548 MW to its total 9.8 GW of installed capacity. ¹⁹ Around 40 dams were still in construction, and the country's Five - Year National Socio-Economic Development Plan (2021-2025) relies greatly on additional hydropower capacities for meeting its renewable energy goals, including the completion of the Luang Prabang 1.46 GW power plant, which is expected to be in operation by 2030. ²⁰

In Japan, where hydropower benefits from a favourable feed-in tariff, the 10.3 MW Komatagawa New Power Plant started operating in Akita Prefecture in January 2023. ²¹ The plant is part of the Komata River Water System, operating on Moriyoshi Dam, and is the first new hydropower plant in the area in around 70 years. ²² The New Power Plant replaced Komatagawa hydropower plants No. 1 and No. 2, makes up to a net capacity addition of 5.8 MW in 2023 and bringing Japan's total installed capacity to 22.2 GW. ²³

Africa

Nigeria added the largest amount of hydropower capacity in the world in 2023, due mostly to the commissioning of the 700 MW Zungeru plant, which is expected to provide 10% of the country's electricity needs. ²⁴ The plant is projected to generate around 2.6 TWh annually and is the second largest hydropower plant in the country, after Kainji. ²⁵

Mozambique announced that it would install its second hydropower plant on the Zambezi River, with the first turbine of the 1.5 GW plant expected to come online by 2031. ²⁶ The existing 2 GW Cahora Bassa Dam on the Zambezi already supplies power to South Africa. ²⁷

In Tanzania, the first turbine of the more than 2 GW Julius Nyerere Hydropower Plant came online in early 2024 and is set to double the country's hydropower capacity when completed. ²⁸ In April 2023, the government of Tanzania signed agreements with several development partners – including the African Development Bank and the French development agency AFD – to finance a second plant, the 87.8 MW Kakono Hydropower Project, in the country's north. ²⁹ The project is targeted to come online in 2026 to displace current diesel generators and to address electricity deficits in the Kagera, Geita and Mwanza regions. ³⁰

Hydropower generation stabilised in eastern and southern Africa in 2023 after the longest and most severe drought on record in these regions crippled generation in 2022. ³¹ Overall, the African continent generated 175 TWh of electricity from hydropower, up 16% from 2022. ³²

Americas

In Canada, the summer of 2023 was the hottest on record since 1940, and a decline in precipitation led to an 8.4% drop in hydroelectric production, to 359 TWh. ³³ Hydropower typically contributes two-thirds of the country's total electricity generation, but in 2023 it was the biggest contributor to the overall decline in electricity supply. ³⁴ In western Canada, the provinces of British Columbia and Manitoba, which rely heavily on hydropower, were forced to import electricity from neighbouring regions. ³⁵ No significant capacity was added in the country during the year. ³⁶

In late 2022 and early 2023, heavy precipitation along the west coast of the United States filled reservoirs and stabilised the country's hydropower production. ³⁷ Although this was a promising start to the year, early snowmelt in the spring combined with continued drought conditions, particularly in the Columbia River Basin, contributed to relatively low production during the rest of 2023. ³⁸ In the states of California, Oregon, and Washington, which together produce half of total US hydropower, production fell 8.1% for the year. ³⁹ Overall, the United States generated 240 TWh from hydropower in 2023, the lowest level since 2001. ⁴⁰ Only four US projects, totalling 24.4 MW, were brought online by year's end, not enough to replace the 31.3 MW of retired units. ⁴¹

FIGURE 25.Top 10 Countries by Hydropower Capacity Additions in 2023 Compared to 2022 Additions

Brazil remained the country with the second largest installed hydropower capacity in 2023, with 118 MW added for a total capacity of 110 GW. ⁴² Overall, capacity additions and generation remained stable relative to 2022 and 2021 levels. ⁴³ Hydropower generation has stabilised in the country in recent years due to increased rainfall, ending 2023 with 427 TWh and helping to reduce fossil gas imports (with gas-fired generation down 72% since 2021). ⁴⁴ Hydropower's share of Brazil's total energy mix fell slightly as generation levels remained steady and total energy demand increased in 2023. ⁴⁵

Hydropower accounted for well over half of the energy mix in several countries in Central and South America, including Colombia, Costa Rica, Ecuador, Panama and Venezuela. ⁴⁶ Colombia was the second largest contributor to global hydropower capacity additions in 2023 with 643 MW, due to the completion of several turbines of the Hidroituango project. ⁴⁷ The only other contributors in the region were Chile (230 MW) and Costa Rica (40 MW). ⁴⁸

Europe

In Europe, hydropower capacity plateaued in 2023, and only six countries added capacity, led by Türkiye (400 MW), Germany (91 MW) and Norway (90 MW). ⁴⁹ Hydropower contributed 12% of the European electricity mix in 2023; however, it is not expected to contribute greatly to the region's added capacity from renewables. This is because there are few remaining suitable water sources for production, and the European Union (EU) has set no specified growth targets in its REPowerEU plan. ⁵⁰ In Austria and Latvia, hydropower continued to contribute a large share (around 60%) of the electricity supply. ⁵¹

Europe's top five hydropower producers in 2023 remained (from largest to smallest) Norway, Sweden, Türkiye, France and Austria. ⁵² In 2022, parts of western Europe experienced the worst drought in 500 years, leading to a nearly 20% decline in the continent's hydropower output. ⁵³ Generation rebounded 12.7% in 2023, to 637 TWh, but this was still the third lowest production of the decade. ⁵⁴ Generation increased in drought-stricken countries such as Italy (up 34%), France (28%) and Portugal (34%). ⁵⁵

During 2023 and early 2024, multiple hydropower plants in Ukraine, with a cumulative capacity of more than 1 GW, were damaged because of the Russian Federation's ongoing invasion of the country. ⁵⁶ Bombings in June 2023 damaged the Kakhovka plant (334.8 MW), putting 42,000 people at flood risk. ⁵⁷ In March 2024, critical infrastructure of the 661 MW Dnipro 2 hydropower plant was bombed and is expected to take years to reconstruct. ⁵⁸ In May 2024, at least two additional hydropower plants were decommissioned following targeted shelling of the facilities. ⁵⁹

In Türkiye, renewable energy accounted for 99.5% of the power capacity added in 2023, of which 400 MW was from hydropower. ⁶⁰ With a total installed capacity of 32 GW, hydropower represented half of the country's renewable energy capacity. ⁶¹ Türkiye was responsible for 80% of all hydropower additions in Europe for the year. ⁶²

Modernisation

Nearly half (630 GW) of the world's hydropower facilities are more than 30 years old, and 490 GW (40%) are over 40 years old. ⁶³ Regular maintenance, upgrade and refurbishement of hydropower plants can increase their lifespan to more than 100 years (while also increasing their output, efficiency and resilience) and can help prioritise variable and flexible output. ⁶⁴

Two plants of Switzerland's Grande Dixence hydropower scheme, totalling 680 MW, came back online in 2023 after seven years of renovations. ⁶⁵ Plants slated for modernisation efforts include some of the largest electricity plants in Georgia – the Enguri and Vardnili hydropower plants – which together supply 30% of the country's electricity needs. ⁶⁶ The Aurland 1 hydropower plant in Norway (840 MW) will optimise three of its 280 MW turbines for greater efficiency by 2027. ⁶⁷ The African Development Bank granted USD 9.72 million to expand the Africa Hydropower Modernisation Programme, which along with private investment would add 570 MW of available capacity across the continent. ⁶⁸ Plants slated for upgrades (such as cooling systems and digitalisation) include Nigeria's 760 MW Kainji plant, Sudan's 280 MW Roseires facility, the Democratic Republic of the Congo's 7 MW Lubilanji plant and South Africa's 2.7 MW Sol Plaatje plant. ⁶⁹

Following the introduction of the Hydropower Sustainability Standard in 2021, the industry has taken increasingly rigorous steps to ensure the sustainability of hydropower projects. ⁷⁰ (See Sidebar 3.) Through multi-stakeholder certification schemes, the standard helps to build trust among diverse stakeholders, while enhancing resilience and integrating good practices in hydropower projects. ⁷¹

Sidebar 3. Hydropower Sustainability Standards in Practice

Hydropower is the largest source of renewable electricity, producing around 14.3% of the world's electricity in 2023, and plays a vital role in supplying reliable baseload power. However, hydropower faces significant sustainability challenges, particularly with large-scale projects (exceeding 30 MW). Challenges include ecosystem disruption from dams and reservoirs, methane emissions from decomposing organic material, community displacement and livelihood disruption, as well as the environmental impacts of construction materials such as cement, steel and copper.

To address these issues, sustainability standards for hydropower have been developed in recent years. To enhance resilience and integrate good practices in hydropower projects, the International Hydropower Association – with support from the European Bank for Reconstruction and Development and the World Bank's Korea Green Growth Trust Fund partnership – developed the Hydropower Sector Climate Resilience Guide in 2019. This guide offers a methodological approach to identify, investigate and manage climate risks.

At the World Hydropower Congress in September 2021, a multi-stakeholder consultation process was facilitated to develop the San José Declaration on Sustainable Hydropower ⁱ . The declaration outlines principles for the sustainable use and planning of hydropower stations and emphasises delivering benefits to communities and ensuring stakeholder collaboration. It provides explicit recommendations for decision makers, such as upgrading existing infrastructure, advancing river restoration and accepting only sustainable hydropower.

Also in 2021, the Hydropower Sustainability Council adopted the Hydropower Sustainability Standard, which evaluates the environmental, social and governance performance of projects based on a rating system covering 12 topics. These include, among others: water quality and sediments, biodiversity, governance and consultations, labour and working conditions, cultural heritage and Indigenous Peoples' rights. The Hydropower Sustainability Alliance, established in 2023, is the multistakeholder body overseeing the governance and implementation of the Hydropower Sustainability Certification System and manages the implementation of the Standard.

In March 2023, Pamir Energy's Sebzor hydropower project in Tajikistan became the world's first project certified under the Hydropower Sustainability Standard, receiving silver certification. Two months later, the Eastmain-1 Development in Quebec, Canada achieved gold certification, and more recently the gold standard also was awarded to Brazil's Jirau project, the largest of the three projects with 3,750 MW of capacity.

The Hydropower Sustainability Standard ensures good practice in project preparation, implementation and operation by driving multi-stakeholder engagement and ensuring transparent processes. Assessments under the Standard use data triangulation, comparing project documents to photos from site visits and interviews with affected communities, ensuring that stakeholder input is effectively integrated in decision making.

i The definition of “sustainable hydropower” under the San José declaration underlines that the preparation, implementation and operation of hydropower should be delivered in accordance with international good practice as defined by the Hydropower Sustainability Standard.

Source: See endnote 70 for this section.