Hydropower Generation Is Estimated To Witness High Growth Owing To Rising Demand For Clean Energy
Hydropower generation involves converting energy from flowing water or falling water into electric power using turbines. Hydroelectric dams and pumped storage facilities are used for hydropower generation. Hydropower generation is considered as a form of renewable and clean energy source with minimal operational emissions as it does not require fuel for power generation. Hydropower generation can power homes and industries and facilitate irrigation, flood control, water supply etc. The global hydropower generation market accounted for nearly 30% of total electricity generation from renewables in 2020.
The global hydropower generation market is estimated to be valued at US$ 251.99 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Rising demand for clean energy and stringent environmental regulations are the key drivers fueling growth of the hydropower generation market. According to International Renewable Energy Agency (IRENA), global hydropower capacity increased by 3.6% between 2014 and 2020 and accounted for over 16% of total electricity generation worldwide. Countries around the world are focusing on developing clean and affordable renewable sources of energy to reduce reliance on conventional sources such as coal and natural gas, which has increased investments in hydropower projects in recent years. Governments of various nations have introduced environmental policies and regulations to curb carbon emissions from power generation sector driving adoption of hydropower technology.
Rising demand for clean energy is expected to continue fueling market growth over the forecast period. Global power demand is projected to increase significantly with growing population and industrialization. Hydropower, being a renewable source of energy, will play a vital role in fulfilling this rising demand while curbing environmental pollution. Various countries are expanding their hydropower capacities by constructing new dams as well as modernizing the existing infrastructure to improve power generation efficiency. These factors are anticipated to propel market growth over the forecast period.
SWOT Analysis
Strength: Hydropower generation is a renewable source of energy that produces minimal carbon emissions. It is a reliable source that provides large-scale baseload generation. Hydropower plants have very low maintenance costs and long lifespan of over 50-100 years.
Weakness: Hydropower generation requires large initial investments and has high development costs for building dams and power stations. Further, hydropower plants are dependent on water flow and seasonal hydrology which makes power generation unreliable during dry seasons in some regions.
Opportunity: Growing concerns over climate change and carbon emissions are driving global demand for clean and renewable sources of energy like hydropower. Many countries are supporting large hydropower projects to meet renewable energy generation targets. Remote areas and developing regions offer opportunities to develop new hydropower projects to meet rising energy demands.
Threats: Environmentalists oppose large hydropower dams due to submergence of land and displacement of local communities. Dams can also impact aquatic ecosystems and cause problems related to silt management. Changing climate patterns may reduce water availability in some river basins threatening long-term power outputs of existing hydropower projects.
Key Takeaways
The Global Hydropower Generation Market Share is expected to witness high growth. Regional analysis related content comprises Asia Pacific dominates the global market currently due to presence of major developing economies like China and India with huge hydropower potential. The region accounts for over 60% of the global hydropower installed capacity. China has the world's largest hydropower capacity and is a major exporter of hydropower equipment.
Key players operating in the hydropower generation market are General Electric (GE) Co., Turbine Generator Maintenance Inc., Toshiba Corporation, Siemens AG, Arani power systems, Elliott Group, TURBOCAM, Doosan Å koda Power, Chola Turbo Machinery International Pvt. Ltd., and Mitsubishi Hitachi Power Systems Americas Inc. General Electric is a prominent player in hydropower equipment manufacturing and service. The company has plants in Europe, Americas and Asia that produce turbines, generators and other hydro products. Toshiba Corporation also has a major share in hydro equipment manufacturing and provides digital solutions to optimize plant operations.
The global hydropower generation market is expected to witness high growth. Hydropower has gained renewed policy support worldwide due to climate change issues. Many emerging economies are developing large hydropower projects to transition from fossil fuel based energy to cleaner renewable sources. The International Hydropower Association (IHA) projects the global hydropower capacity to grow to over 1,700 GW by 2030, up from current 1,211 GW, indicating significant growth opportunities over the forecast period.
For more insights, read- https://makuv.com/rapid-growth-accelerated-by-increasing-emphasis-on-renewable-energy-sources
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