IHA releases flagship 2025 World Hydropower Outlook

Hydropower remains the world’s largest source of renewable electricity, supplying 14.3% of global power and supporting power system flexibility in more than 150 countries.

A total of 24.6 GW of new hydropower capacity was added globally in 2024, while hydropower generation jumped by 10% to 4578 TWh in 2024, rebounding strongly from drought-affected lows the previous year.

Global capacity additions included 8.4 GW of PSH – a 5% increase in global PSH capacity to 189 GW, signalling an accelerating trend. Annual PSH additions have nearly doubled in the past two years, raising the five-year average to 6 GW/y, up from 2 – 4 GW across the previous two decades.

By the end of 2024, the global hydropower development pipeline exceeded 1075 GW (an increase of approximately 8%), including approximately 600 GW of PSH and 475 GW of conventional projects. This growth reflects both the rising momentum behind electricity storage and the enduring importance of conventional hydropower in building low-carbon energy systems. Based on typical project timelines, most of the under-construction capacity is expected to be commissioned by 2030.

Despite positive trends, the sector faces a potential shortfall of 60 – 70 GW by 2030 against the International Renewable Energy Agency’s hydropower target in its ‘tripling renewables’ scenario. Accelerated project approvals and financing will be critical to closing the gap.

Malcolm Turnbull, IHA President, commented: “Encouragingly, this year’s World Hydropower Outlook shows that global new capacity is accelerating after several years of stagnation. With increased solar and wind power on the grid, hydropower plays an increasingly vital role in the global energy transition. But markets alone won’t deliver what is needed. Continued momentum will require bold policy action, including reforms to reward hydropower’s multiple benefits, and faster permitting. The only resource we lack is time.”

Eddie Rich, IHA CEO, added: “As the renewable energy market continues to grow, pumped storage hydropower is playing an increasingly vital role in ensuring system flexibility and stability. At the same time, for many regions, increased conventional hydropower remains the priority to achieving global climate and development goals. In the face of growing climate volatility, we must build not just clean energy systems, but resilient ones.”

Key hydropower trends by region

• China remained at the forefront of new development, adding 14.4 GW of hydropower capacity in 2024. More than half of this capacity was pumped storage, putting the country on track to exceed its 120 GW PSH target by 2030.
• Africa more than doubled its 2023 capacity additions with over 4.5 GW brought online in 2024. In Africa, hydropower already delivers 20% of total electricity generation across the continent, and there is huge scope for further development, with just 11% of the over 600 GW of the continent’s potential currently harnessed. A new wave of projects, many led by private developers, is beginning to emerge.
• Europe saw a landmark year for renewables in 2024, with frequent monthly peaks where hydropower, wind and solar led the EU power mix. Driven by exceptional rainfall, hydropower output surged to a decade-high of 680 TWh, underscoring its critical role alongside wind and solar. A clear business case for pumped storage is emerging, supported by a European project pipeline of 52.9 GW in development. Of this, 3 GW is under construction and 6.7 GW has already received regulatory approval.
• Despite a modest total capacity addition of 306 MW in 2024, hydropower provides approximately 45% of South America’s electricity demand. There is an urgent need for more hydropower investment, as surging electricity demand from mega-ports, data centres and industry make reliable, low-carbon generation capacity a necessity.

The 2025 World Hydropower Outlook was made possible with the support of the following IHA Members: HydroGrid, Sarawak Energy, and Voith; as well as the Hydropower Sustainability Alliance.

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Summer 2025 issue

Dive into the latest renewable energy insights in the Summer issue of Energy Global, out now! This edition features a guest comment from Change Rebellion on the role real change management can play in the global energy sector before a regional report, which looks at energy trends and transformations across the Americas. Other key topics are also explored, including offshore support vessels, floating wind, weather analysis, and battery storage. Contributors include Ørsted, CRC Evans, Miros, Solcast, and more, so don’t miss out!

Read the article online at: https://www.energyglobal.com/other-renewables/25062025/iha-releases-flagship-2025-world-hydropower-outlook/