The global hydropower market will continue to grow in 2022, with global capacity exceeding 1,200 gigawatts (GW) for the first time and investments reaching $36.3 billion, according to a new study released Tuesday.
Rystad Energy research shows this development will stem from countries’ rising motivation to discover adequate renewable energy choices to decarbonize their energy supply.
Karan Satwani, Rystad Energy analyst, said, “Hydropower is the backbone of low-carbon electricity generation and has been rising since the 1970s.
“Over the last two decades, the installed global capacity of hydropower has grown from 680 GW in 2000 to nearly 1,200 GW in 2021, a surge of more than 75 per cent,” he said.
The firm said China continues to be the world leader in total installed hydropower capacity, with over 340 GW, more than tripling the capacity of runner-up Brazil, which has 112 GW.
In addition, the report stated that by 2022, China’s Baihetan hydropower project, which began operations from two of its 16 units in June 2021, will be able to produce up to 16 GW of energy annually once fully operational later this year.
Read also: Kyari advocates for energy transition policies with reflection of economic realities
This will make it the world’s second largest hydroelectric project, trailing only another Chinese mega-development, the Three Gorges Dam in Hubei province.
The research also noted that large-scale projects in Asia and Africa are expected to provide the majority of capacity expansions until 2030. Ethiopia, Mozambique, and Uganda are predicted to lead installed capacity expansion in Africa at a combined annual growth rate of 2.5 per cent from 2017 through 2023.
However, on a regional level, Sub-Saharan Africa, such as Nigeria, and Asia-Pacific are likely to rise as hitherto untapped resources are explored to meet rising energy demand. In order to expand electricity in these areas, cost-effective power generation is also required.
“Hydropower accounted for the majority of Nigeria’s renewable energy capacity, with 2,111 MW. The Niger and Benue rivers, as well as the Lake Chad basin, are significant rivers and natural falls with abundant hydropower potential in Nigeria.
“With an estimated 1,800 m3 of renewable water per person per year, there is still a lot of untapped potential. Hydropower’s entire exploitable potential is projected to be about 14,120 MW,” the International Renewable Energy Agency (IRENA) has indicated in a report.
Hydropower contributes for over one-sixth of global power generation, trailing only coal and natural gas, according to the Rystad study. The industry contributes roughly 60 per cent more to power generation than nuclear power and more than all other renewables combined, including wind, solar PV, biofuels, and geothermal energy.
In addition, hydropower generation increased marginally in 2021, to 4,414 terawatt-hours (TWh) from 4,360 TWh in 2020, while roughly 17 GW of capacity was installed in 2020, followed by another 14 GW in 2021.
According to the survey, governments are looking for dependable, large-scale infrastructure projects to fulfill future demand as hydropower solidifies its place as the most popular renewable energy source.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
