Small Hydropower Market Regional Analysis:
Asia Pacific Market Insights
Asia Pacific small hydropower market share is poised to reach 34% by 2035, with factors like growing investments in renewable energy and a need for small hydropower. The region is moving quickly to clean energy to reduce carbon emissions and play a part in the overall decarbonization process. Small hydropower is gradually presenting itself as a key solution to the difficulties of rural electrification and power supply scarcity. This increase is due to the shift in the region to employ sustainable growth as a way to foster economic growth.
India plays a pivotal role in the small hydropower market in Asia Pacific. As per a report, the total installed capacity of small hydropower in India was 5003.25 MW in March 2024. In the fiscal year 2023-24, all these small hydropower plants together generated 9,485.04 million units (MUs) of electricity. These installations are equally important for improving rural electrification as well as supplying stable energy to the unserved regions. The strategic vision of the National Electricity Plan to diversify and reduce reliance on fossil fuels in India also plans to increase the hydropower capacity.
Hydropower development is witnessing rapid advancements in China due to large-scale investment and policies. In May 2024, the National Development and Reform Commission (NDRC) endorsed the construction of a hydropower plant in the Xizang autonomous region that will cost USD 8.43 billion. The plant is expected to produce more than 11, 280 GWh of electricity per year according to the power output of each plant. This project shows China’s efforts to increase renewable energy plants, secure energy sources, and control greenhouse gas emissions. Hydropower continues to be an important part of the country’s renewable energy mix and strengthens its position in the global small hydropower market.
North America Market Insights
North America small hydropower market size is expected to register substantial growth till 2035, primarily due to the rising number of investments going into renewable energy and the modernization of infrastructure in the region. The strategy of carbon emission decrease and improvement of the stability of grid has stimulated the development of the small hydropower market in the region. Small hydropower has been identified as vital in the development of additional power sources, especially in rural areas that cannot support the big power plants. This consistent increase underlines the need to preserve sustainable energy to support North America future climate targets.
The U.S. is one of the leading countries in North America small hydropower market, with its total number of hydropower plants being 2,252 and the total installed capacity of hydropower plants being 80.58 GW in 2024. While evaluating the hydropower position in the overall renewable energy generation mix in 2022, the hydropower share of renewable electricity generation was at 28.7 percent, which is significant. To sustain this output, the modernization of existing facilities and the construction of small hydropower plants are crucial. Furthermore, the increase in the generation of small hydropower will additionally contribute to more electrification of rural areas and enhance energy security.
Hydropower further remains a dominant source of renewable energy in Canada in its continued bid to shift to green energy sources. In April 2024, Ontario Power Generation (OPG) signed a memorandum to invest in the modernization of five hydropower plants in the Niagara area during the next fifteen years with the help of GE Vernova. This initiative shows Canada approach to bringing new life to aging structures to increase productivity and production. These upgrades shall enhance the stability of the grids and decrease emissions, further enhancing the country’s position as a leader in sustainable energy development. Hydropower is central to Canada’s plan for achieving the goals of reducing emissions and extending power to isolated regions.
