Global hydropower capacity increased by 13.5 GW to 1,412GW in 2023, with pumped storage hydropower (PSH) rising by 6.5 GW to 182GW, according to the latest World Hydropower Outlook from the International Hydropower Association (IHA). Despite this growth, the report indicates a downward trend, posing a risk to achieving global decarbonisation targets by 2050.

To meet net zero targets, a growth rate of just over 26 GW per year is needed from now until 2030. Eddie Rich, CEO of IHA, emphasised that hydropower is crucial for a reliable energy and water system, noting that it not only provides electricity but also storage, flexibility, reliability to support solar and wind, access to clean water, irrigation, and control of droughts and floods.

Doubling hydropower capacity by 2050 requires a cumulative investment of approximately $ 3.7 trillion, or about $ 130 billion annually, which is more than double the current level of funding. Rich also pointed out that increased investment in water infrastructure, such as dams and reservoirs, is necessary due to more frequent droughts and floods caused by climate change, and these infrastructures should be powered wherever possible.

The IHA?s assessment of the ?big 100? pipeline of projects under development suggests that this acceleration is attainable in the early years of the next decade, but further action is needed to increase the delivery rate. Malcolm Turnbull, IHA President, highlighted that as more variable power is developed through solar and wind, the demand for hydropower to provide balance and flexibility will also increase when the wind does not blow and the sun does not shine.