UNIFYING THE VOICES OF HYDROPOWER
2025 World Hydropower Outlook: Global Launch
Hydropower generation in Europe surged to its highest level in a decade in 2024, reaching 680 terawatt-hours (TWh), as the continent experienced exceptional rainfall and accelerated its transition toward renewables, according to the 2025 World Hydropower Outlook released yesterday by the International Hydropower Association (IHA).
The report highlights a landmark year for Europe’s energy system, with hydropower, wind, and solar dominating the EU’s power mix. Hydropower alone generated 13% more electricity than the average output from 2014 to 2017. The increased output underscores hydropower’s critical stabilising role in a volatile energy landscape marked by shifting markets and growing security concerns.
Total installed hydropower capacity in Europe rose to 262.7 gigawatts (GW) in 2024. The continent also saw growing interest in pumped storage hydropower (PSH)—the most proven large-scale electricity storage technology—as policy momentum builds. Europe’s PSH development pipeline now stands at 52.9GW, supported by EU-level reforms and national mechanisms designed to ensure long-term grid flexibility.
The EU’s 2024 electricity market reform mandates member states to evaluate flexibility needs over five- to ten-year horizons, while national initiatives such as the UK’s Cap & Floor regime and capacity markets in Italy and Spain are drawing developers and investors alike.
“With market volatility and system stress on the rise, pumped storage is gaining the attention it deserves,” said Eddie Rich, CEO of the IHA. “The story of this year’s Outlook is clearly that pumped storage hydropower is at the forefront as the world looks to expand energy storage.”
IHA President Malcolm Turnbull added: “Encouragingly, this year’s World Hydropower Outlook shows that global new capacity is accelerating after several years of stagnation. 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.”
On the ground, significant PSH activity is underway across Europe:
- United Kingdom: Over 13GW of PSH projects announced and in development.
- Austria: Around 1.3GW under construction, with 2.8GW in early development.
- Italy: Pipeline nearing 4GW.
- Greece: Over 3GW of PSH in development.
- Türkiye: Nearly 600MW of conventional hydropower under construction.
The total pumped storage installed capacity in Europe now stands at 56GW, with 201MW added in 2024.
Globally, hydropower added 24.6GW of new capacity in 2024—including 16.2GW from conventional and 8.4GW from pumped storage. The development pipeline now exceeds 1,075GW, with 600GW of PSH and 475GW of conventional hydropower.
As hydropower continues to anchor Europe’s renewable transition, the message from this year’s Outlook is clear: investment, policy, and urgency must align to ensure the region’s power systems remain reliable, flexible, and low-carbon.