Hydropower Special Market Report

Hydropower Special Market Report: Overview and Key Findings

Introduction

The International Energy Agency (IEA) has published the first-ever market report dedicated to hydropower, focusing on the economic and policy environment for hydropower development, addressing the challenges it faces, and offering recommendations to accelerate growth and maintain existing infrastructure. This report provides detailed global forecasts for the next decade for the three main types of hydropower: reservoir, run-of-river, and pumped storage projects.

Key Highlights

1. Global Hydropower Potential

   • Despite being economically viable, a large amount of hydropower potential remains untapped worldwide.
   • This potential is particularly strong in emerging and developing economies, where demand for new energy supplies is expanding rapidly.

2. Current Policy Settings

   • Based on current policy settings, global hydropower growth is expected to slow down this decade.
   • Hydropower is crucial for clean energy transitions due to its ability to provide flexibility and storage for electricity systems, making it a natural enabler for integrating wind and solar power.

3. Sustainability Standards

   • High sustainability standards are necessary to ensure that the energy and climate benefits of hydropower are not undermined by negative environmental and social impacts.
   • Governments must devote significant policy attention to enable hydropower to overcome its current challenges.

4. Climate Ambitions

   • While many governments have pledged to reach net-zero emissions by mid-century, climate ambitions are not yet backed up by credible policies to drive down emissions.
   • Hydropower should be placed back on the energy and climate policy agenda as one of the key technologies for achieving net-zero emissions.

Future Outlook

• The report forecasts that the growth of hydropower globally is set to slow down this decade unless policy settings change.
• Hydropower is recognized as the largest source of clean and flexible electricity generation worldwide.
• The 2020s must be the decade of massive deployment of all clean and efficient energy technologies to limit global warming to 1.5°C.

Conclusion

• The IEA emphasizes the importance of high sustainability standards for hydropower projects.
• Governments must take concrete steps to close the gap between rhetoric and action.
• The report aims to provide useful insights for policymakers seeking to build a clean and secure energy future.

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Source: International Energy Agency (IEA)

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This summary captures the key points and findings from the Hydropower Special Market Report, highlighting the importance of hydropower in the transition to a low-carbon energy system and the need for supportive policies and sustainable practices.