Why is hydroelectricity important?

Hydropower currently generates more electricity than all other renewable technologies combined
and is expected to remain the world’s largest source of renewable electricity genera on into the
2030s. Therea er, it will con nue to play a cri cal role in decarbonising the power system and
improving system flexibility.

What is the role of hydroelectricity in clean energy transi ons?

While hydro is expected to be eventually overtaken by wind and solar, it will con nue to play a key
role as a dispatchable power source to back up variable renewables. Pumped storage could also
poten ally play a major role in balancing out varia ons in solar and wind genera on.

What are the challenges?

Without major policy changes, global hydropower expansion is expected to slow down this decade.
The contrac on results from slowdowns in the development of projects in China, La n America and
Europe. However, increasing growth in Asia Pacific, Africa and the Middle East partly offsets these
declines. Increasingly erra c rainfall due to climate change is also disrup ng hydro produc on in
many parts of the world.

Latest findings

Hydropower is the largest source of renewable electricity today, but solar PV and wind are catching
up

Hydropower is currently the largest renewable source of electricity globally – though that is expected
to change by the end of this decade.

Growth in capacity is forecast to remain stable through 2030, driven by addi ons in China, India,
Africa and Southeast Asia. Although hydropower genera on is expected to increase globally as new
projects become opera onal, the technology’s share in total power genera on is expected to decline
as growth in electricity demand outpaces deployment.

Renewables 2024

Renewable energy demand growth by sector, main case, 2023-2030

Open

HeatTransportEJShares2023Growth20302023Growth20302023Growth20300102030405060700%10
%20%30%40%50%60%70%Electricity

IEA. Licence: CC BY 4.0

 Solar

 Wind

 Hydro

 Other

 Renewable electricity

 Bioenergy
  Hydrogen and efuels

 Shares

Tracking Hydroelectricity

More efforts needed

Hydroelectricity genera on decreased by over 100 TWh (down over 2%) in 2023, due to lower than
usual genera on in a few key hydropower countries, including China, India, Canada, the United
States and Viet Nam caused by draughts. In result global genera on decreased to 4 250 TWh.
Hydropower remains the largest renewable source of electricity, genera ng almost as much as all
other renewable technologies combined. In the Net Zero Emissions by 2050 (NZE) Scenario,
hydropower maintains an average annual genera on growth rate of 3.5% in 2024-2030 to provide
approximately 5 400 TWh of electricity per year. However, between 2018 and 2023, hydroelectricity
genera on increased by less than 1%, signalling a need for significantly stronger efforts, especially to
streamline permi ng and ensure project sustainability. Hydropower plants should be recognised as a
reliable backbone of the clean power systems of the future and supported accordingly.

Country and regional highlights

Almost two-thirds of global hydropower capacity addi ons in 2023 happened in China

Energy

Genera on decreased in 2023 due to con nuing droughts reaching levels last observed in 2019

Technology deployment

Maintaining the output of ageing hydropower plants will require significant effort

Innova on

Innova on in hydropower is focused on increasing the flexibility of power genera on to answer the
changing needs of the power system

Policy
Hydropower should be put back on the global energy and climate policy agenda

Investment

Investment in hydropower con nues its downward trend, highligh ng a need for far greater efforts
to get on track with the Net Zero Scenario

Interna onal collabora on

Hydropower is part of global renewable power development collabora ons, although it is o en side-
lined

Recommenda ons

1. 1Introduce streamlined rules and regula ons to enforce robust sustainability standards on
all hydropower developments

2. 2Recognise the cri cal role of hydropower in electricity security and reflect its value in
remunera on schemes

3. 3Support plant modernisa on to maximise hydropower’s flexibility capabili es

4. 4Mobilise affordable financing for sustainable hydropower deployment in developing

5. 5Recognise and evaluate the mul purpose benefits of hydropower plants

Last update on 18 February 2025

Authors and contributors

Programmes and partnerships

IEA Hydropower TCP

The Hydropower TCP aims to increase awareness, knowledge and support for the sustainable use of
water resources for hydropower development and management.

Technology Collabora on Programme (TCP)

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