Hydropower projects are surging globally as part of an estimated $7.8 trillion investment pipeline in power generation construction, according to a recent GlobalData report. With an increasing global commitment to renewable energy sources, hydroelectric projects now represent nearly 15% of the total project pipeline, valued at $1.14 trillion. These initiatives are set to add an impressive 760GW of new power capacity worldwide, underscoring hydropower’s vital role in the global energy transition, the Project Insight – Global Power Generation Construction Projects report says.
The regional distribution of hydropower investments highlights both established and emerging leaders in renewable energy. Sub-Saharan Africa, where hydro accounts for 34% of all planned energy investments, is especially noteworthy. Major projects, like the 5,150MW Grand Ethiopian Renaissance Dam, demonstrate the scale and importance of hydropower for addressing energy access issues and meeting growing demand across the continent.
In North-East Asia, China’s $70 billion Tibet Yarlung Tsangpo Hydroelectric Power Plant is a flagship project, aiming to contribute a massive 60GW of capacity. This project not only showcases China’s emphasis on clean energy but also supports its national goal to peak carbon emissions by 2030. Similarly, Southeast Asia is pushing forward with significant hydro developments, such as Indonesia’s 24GW Mamberamo project, to combat energy shortages while creating employment opportunities for local communities.
As these hydropower projects progress, funding is a mix of private and public investments. Worldwide, private funding leads, covering 55% of the power generation pipeline value. However, joint public-private partnerships, accounting for 16% of global funding, are crucial in large-scale hydroelectric projects, particularly in developing regions where access to private capital remains limited.
Despite hydropower’s rapid growth, the sector faces hurdles, including high construction costs and potential ecological impacts. The report stresses that government support, regulatory frameworks, and international financing partnerships will be essential to overcoming these challenges and ensuring hydropower can fulfill its potential in a low-carbon energy future.