According to the International Hydropower Association (IHA), hydropower accounted for 15% of the world's electricity generation last year. China led the sector's growth with a substantial increase of 24GW in capacity, marking the first time since 2016 that over 30GW of new capacity was built in a single year. Meanwhile, Switzerland, Portugal, and Turkey spearheaded significant projects in Europe, with Norway, Austria, and Italy also making notable contributions.

Despite the progress observed in the sector, the IHA's World Hydropower Outlook highlights that an additional 700GW of hydropower capacity is required to remain on track for achieving global net-zero emissions by 2050. In terms of investment, the report emphasizes the need for an annual funding of $100 billion to support the realization of net-zero goals, which is currently only half of the required amount.

Eddie Rich, CEO of the IHA, emphasizes the importance of incentivizing sustainable hydropower development through financial and market mechanisms, streamlining permitting and licensing processes for renewable projects, and implementing regulatory practices that prioritize hydropower sustainability. The Outlook provides a realistic roadmap to leverage hydropower and other renewables in meeting net-zero targets, urging governments to consider the recommendations presented to drive the development of sustainable hydropower and accelerate progress towards global climate goals.

Read more on the IHA Hydropower Outlook 2023.