APAC Hydropower Industry

APAC Hydropower Market Analysis

The Asia-Pacific Hydropower Market is expected to register a CAGR of greater than 3% during the forecast period.

• Over the medium term, factors such as growing investments in renewables and hydropower projects and the growing demand for consistent electricity supply in developing countries such as China, India, and Indonesia are anticipated to drive market growth during the forecast period. Also, the increasing strategic collaborations in developing countries are also supporting market growth.
• On the other hand, the initial cost of a hydropower project is high, and this factor is expected to restrain the market.
• Nevertheless, the technological advancements in efficiency and decrease in the production cost of hydropower projects are expected to create ample opportunity for the market in Asia-Pacific.
• China is estimated to dominate the market due to increasing investment in hydropower projects.

APAC Hydropower Market Trends

Small Hydropower Segment Anticipated to Dominate the Market During the Forecast Period

• The small hydropower segment is anticipated to dominate the market during the forecast period owing to factors such as growing investments in small-scale decentralized energy production units in developing countries.
• Since the late 19th century, small-scale hydropower has been used in isolated regions to generate electricity. Small-scale hydropower systems can be installed in small rivers and streams and in existing water supply networks, such as drinking water and wastewater.
• In contrast to large-scale hydropower systems, small-scale hydropower systems can be installed with little or negligible environmental impact on wildlife or ecosystems, primarily because most small hydropower plants are run-of-river schemes or implemented in existing water infrastructure.
• As a renewable energy source, small-scale hydropower offers rural or developing areas an affordable, sustainable energy source due to its versatility and low investment costs.
• Several factors influence the construction of small-scale hydropower systems, such as the site characteristics, the size of the power plant, and the location. The maintenance costs of this technology are relatively low compared to those of other technologies.
• According to the International Renewable Energy Agency (IRENA), the Asia-Pacific region recorded a 608.72 GW of hydropower installed capacity in 2021, which is 4.1% more than in 2020.
• Increased investments in rural electrification in these countries are driving the demand for small hydropower. For Instance, in April 2022, Flovel Energy announced the signing of the Contract for Nam Tang 3 HPP (2 x 8.75 MW) in Vietnam with Horizontal Francis units. The Truong Thanh Investment Construction Company Limited is developing the project. Nam Tang 3 Hydro Project is located in Yen Bai Province, Vietnam, and this is the company's eighth Project in Yen Bai province.
• The environmental advantages, low costs involved in constructing these types of hydropower plants, and increasing investments in developing small-scale hydropower plants are expected to drive the segment during the forecast period.

China is Expected to Dominate the Asia-Pacific Hydropower Market

• China is anticipated to dominate the Asia-Pacific small hydropower market during the forecast period. China leads the Asia-Pacific region in hydropower capacity, followed by India and Japan.
• The growing number of small hydropower projects in the country, along with the rising investments in the country, are some prominent factors influencing the market growth. Small hydropower (SHP) in China denotes outputs up to 50 MW.
• According to International Hydropower Association, globally, 26 GW of new hydropower capacity came online in 2021, an increase of over 21 GW in 2020. Most of this growth was attributed to China, which saw nearly 21 GW of new capacity online.
• As of 2021, China is the world's leading producer of hydropower, with over 390 GW of installed capacity, followed by Brazil (109 GW), the United States (102 GW), and Canada (82 GW).
• In September 2021, the Chinese government published its mid-term and long-term plans for developing pumped storage hydropower. These plans outlined ambitious goals to reach 62 GW by 2025 and 120 GW by 2030.
• In December 2022, Qinghai province's National Development and Reform Commission approved a hydropower plant worth USD 2.46 billion. It is a pumped storage hydroelectric facility that pumps water from a lower reservoir to an upper reservoir during periods of high electrical demand. Upon completion in 2028, the plant will be fully operational.

APAC Hydropower Industry Overview

The Asia-Pacific hydropower market is moderately consolidated. Some of the key players in this market (in no particular order) include NTPC Ltd, PowerChina, China Yangtze Power Co. Ltd, Tokyo Electric Power Company Holdings, Inc., and NHPC Ltd., among others.

APAC Hydropower Market Leaders

APAC Hydropower Market News

• In July 2022, the Development Bank of the Philippines (DBP) approved USD 11.7 million in funding to support the development of the 4.6 MW Dupinga Mini Hydropower project in Gabaldon, Nueva Ecija, in the Philippines. The DBP's financing of the Dupinga Project will help the government reach its 30% renewable energy goal by 2030.
• In March 2022, International technology Group ANDRITZ and the Electricity Generating Authority of Thailand (EGAT) signed a Memorandum of Understanding (MoU) to expand and explore business opportunities for hydropower projects in Thailand and surrounding countries.