According to IEA the Hydropower generation decreased in 2022, declining despite a step increase in capacity growth.
The electricity production decrease was caused by droughts in several parts of the world. The hydropower remains the largest renewable source of electricity, generating more than all other renewable technologies combined.
In the Net Zero Emissions by 2050 Scenario, hydropower maintains an average annual generation growth rate of about 3% in 2022-2030 to provide approximately 5 700 TWh of electricity per year. In the last five years the growth rate was just one-third of what is required, signalling a need for significantly stronger efforts, especially to streamline permitting and ensure project sustainability. Hydropower plants should be recognised as a reliable backbone of the clean power systems of the future and supported accordingly.
In 2021 global hydropower generation decreased by 15 TWh (down 0.4%) to 4 327 TWh. The drop in generation was caused by persistent droughts in hydropower-rich countries such as Brazil, the United States, Turkey, China, India and Canada, leading to lower than usual hydro capacity utilisation. At the same time, capacity additions in 2021 reached 35 GW, 50% higher than the average of the previous five years. However, severe draughts continue in 2022, which can result in continuation of below average generation.
The hydropower market this year could reach a global capacity of more 1,200 GW and investments climb to $36.3 billion, according to Rystad Energy research.
Hydropower is solidifying its position as the most popular renewable energy source, Rystad Energy said. Hydropower accounts for almost one-sixth of the world’s power generation, trailing only coal and natural gas. The industry’s contribution to power generation is nearly 60% higher than nuclear energy and greater than all other renewables combined, including wind, solar PV, bioenergy and geothermal. Power generated through hydropower rose slightly in 2021 to 4,414 TWh, up from 4,360 TWh in 2020, while 14 GW of capacity was added in 2021 and 17 GW in 2020.
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