Hydropower Market to Grow with a CAGR of 5.19% through 2028
Increasing demand for electricity and Technological
advancements are likely to drive the market in the forecast period.
According to TechSci Research report, “Hydropower
Market – Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Hydropower Market stood at USD 220.08 billion
in 2022 and is anticipated to grow with a CAGR of 5.19% in the forecast period.
One of the primary drivers propelling the global
hydropower market is the global transition towards renewable energy sources and
the pursuit of ambitious climate goals. Hydropower, as one of the oldest and
most established renewable energy technologies, plays a pivotal role in helping
nations reduce their reliance on fossil fuels and combat climate change.
Governments, international organizations, and
stakeholders worldwide have set targets to significantly increase the share of
renewable energy in their energy portfolios. This commitment to clean energy
sources aligns with the broader global effort to reduce greenhouse gas
emissions and mitigate the impacts of climate change, as demonstrated through
international agreements like the Paris Agreement.
Hydropower offers several advantages that position it
as a key driver in achieving these goals:
Low Carbon Emissions: Hydropower generates electricity
without direct carbon emissions, making it a low-carbon energy source. It plays
a crucial role in displacing fossil fuel-based power generation, which is a
major contributor to greenhouse gas emissions.
Reliable Baseload Power: Large-scale hydropower plants
provide reliable baseload power, capable of meeting continuous electricity
demand. This stability is essential for maintaining a consistent power supply
while integrating intermittent renewable sources like wind and solar.
Grid Stability and Energy Storage: Some hydropower
facilities, such as pumped storage hydroelectric plants, offer energy storage
capabilities. They can store excess energy during periods of low demand and
release it during peak demand, contributing to grid stability.
Long Lifecycle: Hydropower infrastructure has a long
lifecycle, often exceeding 50 years, making it a sustainable and enduring
energy source.
The global transition to renewable energy and the
pursuit of climate goals create a favorable environment for the growth of the
hydropower market, driving investments in new projects and the modernization of
existing ones.
Energy security and grid resilience are critical
drivers behind the global hydropower market. Hydropower plays a pivotal role in
ensuring a stable and reliable energy supply, making it an essential component
of energy systems worldwide.
Energy Security: Dependence on imported fossil fuels
or single sources of energy generation can pose significant risks to a nation's
energy security. Hydropower, as a domestically sourced energy supply, reduces
vulnerability to energy price fluctuations and supply disruptions. It enhances
energy security by providing a reliable source of electricity, particularly in
regions with abundant water resources.
Grid Stability and Reliability: The variability of
renewable energy sources like wind and solar can create challenges in
maintaining grid stability. Hydropower facilities, especially those with
flexible operation capabilities, contribute to grid reliability by adjusting
their power output to match fluctuations in electricity demand. This capacity
for rapid response enhances the resilience of the electrical grid, especially
during extreme weather events or unexpected disruptions.
Disaster Resilience: Hydropower plants, including
pumped storage facilities, can act as a form of energy storage, providing a
source of backup power during emergencies and natural disasters. This capability
is crucial for disaster recovery efforts and ensuring essential services remain
operational.
In conclusion, the drivers of the global hydropower
market extend beyond environmental considerations. The pursuit of energy
security, grid stability, and resilience in the face of climate-related
challenges underscore the importance of hydropower as a reliable and essential
component of the global energy landscape.
Browse over XX market data Figures spread
through XX Pages and an in-depth TOC on "Global Hydropower
Market.”
The Global Hydropower Market is segmented into type, capacity,
component, end-user and region.
Based on capacity, The Above 100 MW segment had the
largest market share in 2022 & expected to maintain it in the forecast
period. Large hydropower plants benefit from economies of scale, which means
that as the capacity of a plant increases, the cost per unit of electricity
generated tends to decrease. This makes larger projects financially attractive.
The significant upfront investment required for dam construction and other
infrastructure can be justified by the substantial energy output and revenue
potential of large-scale projects.
Hydropower plants with capacities above 100 MW
typically provide a stable and reliable energy supply. They are well-suited for
baseload power generation, meaning they can run continuously to meet the
minimum energy demand of a region. This reliability is essential for supporting
the grid and ensuring a consistent power supply, which is especially valuable
in regions with high energy demand.
Large hydropower plants play a crucial role in grid
stability. They can quickly respond to changes in electricity demand, providing
grid operators with a valuable tool to balance supply and demand. The ability
to ramp up or down power production swiftly helps stabilize the grid during
fluctuations in renewable energy sources like wind and solar.
Some large-scale hydropower plants, such as pumped
storage hydroelectric plants, offer energy storage capabilities. They can store
excess energy during periods of low demand and release it when demand is high,
acting as virtual batteries for the grid. Energy storage is increasingly
important as the grid incorporates more intermittent renewable energy sources.
Large hydropower plants have the potential to generate
a significant amount of electricity, which translates into higher revenue for
project developers and utilities. The substantial energy output can offset the
initial capital investment and operational costs over the long term.
Based on end-user, The Utility segment had the largest
market share in 2022 and is projected to experience rapid growth during the
forecast period. Utilities are responsible for meeting the electricity needs of
a large and diverse customer base, including residential, commercial, and
industrial consumers. To serve such a significant demand, utilities require
power sources with substantial generating capacity. Large-scale hydropower
plants, often exceeding 100 MW, provide the necessary scale to meet the
electricity demand of utilities efficiently. Many hydropower plants,
particularly those with higher capacities, are capable of providing baseload
power. Baseload power sources are essential for utilities because they can
operate continuously to meet the minimum electricity demand, ensuring a stable
and reliable power supply. Hydropower's ability to function as baseload power
complements other intermittent renewable sources like wind and solar. Large
hydropower plants contribute significantly to grid stability and reliability.
They can quickly respond to fluctuations in electricity demand, helping
utilities balance supply and demand on the grid. This capability is vital for
maintaining a stable and resilient electrical infrastructure, particularly in
regions with variable renewable energy sources. The development and maintenance
of hydropower infrastructure, including dams, reservoirs, and transmission
lines, often require substantial capital investment. Utilities, with their
financial resources and long-term planning capabilities, are well-suited to
undertake such investments. These investments ensure the reliable operation of
hydropower facilities and the delivery of electricity to consumers. Many
utilities are actively working to diversify their energy portfolios and
increase the share of renewable energy sources. Hydropower is considered a
reliable and established renewable energy source that aligns with
sustainability goals and regulatory requirements. Its consistent generation
capacity makes it an attractive option for utilities aiming to reduce their
carbon footprint. In various regions, governments and regulatory authorities
often incentivize utilities to invest in renewable energy sources like
hydropower through favorable policies, subsidies, and renewable energy targets.
These policies encourage utilities to prioritize the development and expansion
of hydropower projects.
Major companies operating in the Global Hydropower Market
are:
- China Three Gorges Corporation
- Statkraft AS.
- GE Renewable Energy
- Voith Group
- Andritz AG
- Siemens Energy AG
- ALSTOM Holdings
- ABB Ltd
- Hitachi Ltd
- Toshiba Corporation
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“The Global Hydropower market is expected to rise in
the upcoming years and register a significant CAGR during the forecast period. The global demand for
electricity is expected to grow significantly in the coming years, due to
population growth and economic development. Hydropower is well-suited to meet
this growing demand, as it is a large-scale and reliable source of energy. Governments
around the world are providing financial and regulatory support to promote the
development of renewable energy, including hydropower. This support is helping
to reduce the cost of hydropower projects and making them more attractive to
investors. Technological advancements in hydropower technology are making
hydropower projects more efficient and cost-effective. For example, new turbine
designs and advanced control systems are helping to improve the efficiency of
hydropower plants. Therefore, the market of Hydropower is expected to
boost in the upcoming years.,” said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based management consulting firm.
“Hydropower Market - Global Industry Size, Share,
Trends, Opportunity, and Forecast, 2018-2028 Segmented By Type (Mini
Hydropower, Micro Hydropower), By Capacity (Above 100 MW, Under 10 MW, Others),
By Component (Civil Construction, Electromechanical Equipment, Electric, Power
Infrastructure, Others), By End-User (Industrial, Utility, Others), By Region,
By Competition”, has evaluated the future growth potential of Global
Hydropower Market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision-makers make sound investment decisions., The
report also identifies and analyzes the emerging trends along with essential
drivers, challenges, and opportunities in the Global Hydropower Market.
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