2017 Hydropower Status Report
2017 Hydropower Status Report
2017 Hydropower Status Report
2017
IHA CENTRAL OFFICE IHA CHINA OFFICE IHA SOUTH AMERICA OFFICE
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Methodology
FOREWORD 05 Statistics are compiled by IHA using data
from published sources, IHA members,
EXECUTIVE SUMMARY 06 government representatives, industry
sources and media monitoring. The data is
REGIONAL TRENDS IN BRIEF 08 regularly tracked, stored and updated to
account for new information as it is
CLIMATE RESILIENCE GUIDELINES FOR HYDROPOWER 10 received. Data verification exercises are an
ongoing process, leading to corrections as
NEW REPORTING MECHANISM FOR HYDRO’S CARBON FOOTPRINT 12 and when needed.
GREEN BONDS FOR HYDROPOWER FINANCING 14 IHA’s database houses data for all sizes
of hydropower assets, in all locations and
ELECTRICITY STORAGE: A CHANGING LANDSCAPE 16 of all types.
REGIONAL OVERVIEWS 28
SOUTH AMERICA 42
AFRICA 50
EUROPE 58
Researched, written and edited by the team at Awadh B Giri Claudio Seebach
IHA central office CEO (hydropower), Hindustan Powerprojects Executive vice president, Generadoras de
Pvt Ltd Chile
Climate resilience section written in
collaboration with the World Bank Lothar Groschke Torstein Dale Sjøtveit
AF-ITECO AG Vice president, IHA
Energy storage section written in
collaboration with the International Bill Hamlin Song Dan
Renewable Energy Agency (IRENA) Manager, energy policy and resource options, International department, China Three Gorges
Manitoba Hydro Corporation
Long-distance transmission section written in
collaboration with the Global Energy Atle Harby Peter Stettner
Interconnection Development and Researcher, SINTEF Head of market strategy, Andritz
Cooperation Organization (GEIDCO)
Kaleem Khan Óli Sveinsson
Sediment management section written in Station manager, Laraib Energy Limited Executive vice president of research and
collaboration with George W Annandale, development, Landsvirkjun
Waqar Ahmad Khan
Golder Associates, and Gregory L Morris, GLM
Chief executive officer, Star Hydro Power
Engineering
Limited
1,246 GW
contributed to the production of the 2017
The initiative could help catalyse
Hydropower Status Report, and I invite
responsible development in the regions
everyone reading to join the international
global hydropower capacity where it is most needed by advancing
network that is IHA.
(including pumped storage)
4,102 GWh
estimated worldwide generation
by hydropower in 2016
Richard Taylor
Chief executive
In other parts of the world, such as in Reporting mechanisms for hydro’s For example, the Barclays MSCI Green
Canada, the predominantly hydro-based carbon footprint are advancing Bond Index lists a published protocol
systems are increasing their already An international research initiative has assessment meeting ‘basic good practice’
strong interconnections with the developed a framework for calculating the in its eligibility criteria, while the Climate
neighbouring grids of the US Midwest. net greenhouse gas (GHG) emissions of Bonds Initiative is working with multiple
Utilities like Manitoba Hydro can utilise freshwater reservoirs. To accurately account stakeholders to develop its own eligibility
their hydropower reservoirs to balance for hydropower’s carbon footprint, criteria. This evolution in protocol use has
the output of major windfarm pre-impoundment emissions specific to indicated the need to develop
developments to the south, while each reservoir will now be considered, as complementary derivatives to enable
enabling bilateral trade opportunities for well as the multiple services provided by the practical application while protecting the
export and providing import capability reservoir. As investors and lenders are strong quality control elements of the
for reliability in low-water conditions. currently seeking to further refine guidelines tool. Two priorities are an environmental
on eligibility criteria for hydropower, there is and social derivative, and International
New priorities are emerging on smart
an increasing obligation for the sector to Industry Good Practice Guidelines.
modernisation and digitisation of assets
report on its carbon footprint.
Asset management is becoming more Financing institutions are placing
challenging across the sector as a The new conceptual approach has led to greater emphasis on climate resilience
growing number of assets are reaching the development of the G-res tool which Financing institutions are seeking to
the end of their expected life. By 2050, it is will provide estimates of net GHG emissions address climate-related risk by ensuring
estimated that roughly half of the entire from planned and existing reservoirs, projects are planned and operated to be
fleet of existing hydropower equipment contributing a much more consistent resilient to climate change. Resilience and
will have undergone modernisation. estimate of hydropower’s GHG footprint, adaptation measures must be
while establishing hydropower projects on communicated clearly to investors. The
The digitisation of hydropower plants,
a level playing field with other renewable World Bank has launched a study to
control systems and surrounding
energy resources for access to premium develop guidelines for designing resilient
networks is an emerging industry trend
markets and green investments. projects, where possible enabling them to
that promises to optimise asset
take advantage of opportunities arising
management and performance. For Tools for reporting on sustainability
from climate change. These would ensure
example, the digitisation of hydropower performance are diversifying
projects are safe and reliable, and can
systems is increasingly being The Hydropower Sustainability
provide adaptation services to incentivise
implemented to allow hydro to work Assessment Protocol has become broadly
policy and investment. The World Bank
together with other renewable resources recognised as the primary tool for
recently convened sector experts to
to provide increased flexibility and evaluating sustainability performance,
outline a vision for these guidelines, where
enhanced control for ancillary services having been implemented worldwide.
it was agreed they should cover practical
(frequency control, balancing services, The range in the tool’s application has
risk assessment and mitigation, and be
etc). Other digital innovations include grown, from full assessments through to
recognised by investors and multilateral
cybersecurity, plant and fleet optimisation, guided internal assessments that are
organisations. One of the Climate Bonds
outage management, condition playing a strong role in building internal
Initiative’s eligibility criteria for financing
monitoring equipment and energy capacity. New initiatives such as green
hydro projects now requires consideration
forecasting. Together, these innovations and climate bonds are increasingly
of measure relating to climate resilience.
are providing hydropower asset owners recognising the protocol.
Guidelines are set to become increasingly
with actionable insights from data to
important in the sector.
increase the value of hydropower assets.
Respondents also pointed out that climate change. While hydropower has can provide a framework for reporting
climate change can bring opportunities a long tradition of dealing with climate on climate resilience. As an example of
for their organisation. For example, in variability, project developers and the urgent need for these guidelines,
watersheds fed largely by glacial melt, financial institutions currently lack one element of the eligibility criteria for
climate change is expected to increase guidance on appropriate methods for the Climate Bonds Initiative for
seasonal inflows, whereas in watersheds incorporating climate resilience financing hydropower projects will
fed by glaciers that have already lost measures into project design and require a measure of climate resilience
significant mass, flow rates may change appraisal, to ensure hydropower for candidate projects.
in quantity and intensity. projects are resilient in the face of the
Objectives
uncertainty of future climate change
Landsvirkjun, the National Power The objective of this initiative is to
and natural disasters.
Company of Iceland, has become a develop a tool that provides practical
pioneer in adapting to climate change There is a need to communicate climate guidelines on the goals, objectives,
by modifying not only the management resilience and adaptation measures to analyses and recommendations needed
of its hydropower plants, but also the investors in a simple and clear manner. to achieve climate resilience in the
design of its assets. Together with other The World Bank has identified this planning, design, construction and
power companies, universities and need, and is working together with IHA operation of hydro projects. This will
meteorological services across and other key stakeholders to develop a also include the assessment of
Scandinavia, Landsvirkjun has produced set of guidelines that will ensure operational performance, rehabilitation
data on river flows that incorporates projects are resilient and, where and upgrades of existing assets. The
climate trends. Every five years the possible, designed to take best guidelines will provide a roadmap
company will issue new revised flows advantage of any opportunities created connecting upstream analytical climate
and use the data to adjust its reservoir by the direct impacts of climate change. change work and downstream
management plans. Landsvirkjun also resilience engineering work.
The World Bank and its key
uses the long-term perspective provided
stakeholders met in both 2016 and 2017 Building on the work the World Bank
by climate modelling to design and
to develop collaboratively the scope has done in developing the ‘decision
adjust existing and proposed new
and schedule of delivery for these tree framework’ for identifying and
projects to take advantage of
guidelines. A broad cross-section of managing climate risks, the guidelines
anticipated increases in flow rates.
international stakeholders, including will follow an iterative and sequential
To address the risks to the hydropower representatives from the hydropower approach as described here:
sector, associated with climate change, sector, project developers and
• A first phase ‘project screening’
the World Bank has launched an international financial institutions,
pre-feasibility study will be carried
initiative to produce a set of climate reiterated the importance and urgency
out, investigating if a proposed
resilience guidelines which aim to of this work. They established a goal of
project is climate sensitive, and
ensure that both existing and future creating a set of guidelines that the
leading to an obligation to provide
hydropower projects are resilient to industry supports as a whole and that
evidence proving the case.
• During the second phase, a feasibility evaluated to determine if it is robust take place at the ICOLD 2017 Annual
study will be carried out measuring if and can cope with the potential Meeting in Prague in July.
climate is a dominant factor for the changes in the system.
IHA will play a coordination role by
project. In this stage, non-climatic
The path forward connecting the lead consultant with a
factors will also be considered.
Further consultation and testing with community of users from the
• In the third phase a ‘climate stress Mott MacDonald, the lead consultant developing world, who can contribute
analysis’ will examine plausible for the project led by the World Bank, is in testing the initial version of the
climate risks and, where applicable, ongoing with a goal of producing an guidelines. In parallel, IHA will assist in
more detailed hydrological and initial draft of the guidelines by May engagement with leading practitioners
climate system modelling can be 2017, concurrent with a workshop at the and operators who have experience in
undertaken. 2017 World Hydropower Congress in climate resilience design for their
• In the final phase, ‘climate risk Addis Ababa, Ethiopia. Thereafter, final projects, and will provide useful case
management’, the project will be dissemination of the guidelines will stories for the initiative.
The Búrfell hydropower plant in Iceland, owned and operated by Landsvirkjun, is being expanded to cope with expected increases in flow rates
Mitigating climate change is one of the most important goals for strategic
sustainable development. The reduction of greenhouse gas (GHG) emissions is
the focus of a number of international targets and agreements such as the
recently ratified Paris Agreement, which seeks significant emissions reductions
in order to limit global average temperature increases to well below 2 °C.
GHG emissions since the industrial multi-year UNESCO and IHA joint • emissions that are the result of
revolution have largely been driven by research project, which began in 2008. nutrients and organic matter
economic and population growth. As a released by human activity to the
Until only recently, estimates of the GHG
result, the atmospheric and ocean water bodies upstream of or within
footprint of reservoirs have typically been
temperatures have risen. Climate the reservoir itself. This is termed
assessed by applying average numbers,
change impacts, such as the increased ‘unrelated anthropogenic emissions’,
which reflect a subset of empirical
frequency and intensity of extreme and encompasses wastewater from
measurements which are then
weather events, can pose significant settlements, industry, agriculture or
extrapolated to other reservoir types
and irreversible adverse effects to fish farming.
deemed comparable. These
human and environmental health. In summary, this new approach indicates
methodologies often considered all
There is therefore a clear and pressing surface GHG emissions, and made no that on average, 75 per cent of carbon
need to quantify the GHG footprint of distinction between pre-existing and new dioxide emissions observed on reservoir
human activities. The footprint of hydro, emissions pathways to the atmosphere. surfaces should be considered natural,
especially emissions due to the i.e. they would have occurred even if the
The new conceptual approach takes a reservoir did not exist. On the other
development of storage reservoirs, has
net approach, and even goes further to hand, the majority of net GHG emissions
long been questioned in both scientific
look at the changing dynamic to the atmosphere are the result of an
and policy spheres.
biochemical structures and pathways increase in methane emissions, a gas
There has, however, been a lack of that reservoir impoundment creates. with a much higher greenhouse effect
scientific consensus on how to quantify The approach thus takes into account: than carbon dioxide. Methane emissions
hydropower’s GHG footprint, and this are tightly linked to the environmental
• the GHG footprint of the affected
uncertainty has proven to be a characteristics of the reservoir.
landscape prior to impoundment.
significant obstacle for policy and
This includes a new reservoir’s The development of the G-res tool
decision makers, especially regarding the
upstream catchment area, the builds upon this new conceptual
potential financing of projects and the
reservoir itself as well as the framework. In order to comprehensively
designation of ‘sustainable’ or ‘climate-
downstream area; estimate the GHG footprint of reservoir
friendly’ labels to certain projects.
• the specific and particular formation, the G-res tool also includes
A consortium of researchers from environmental conditions of each an estimation of the emissions due to
around the world is introducing new reservoir. Environmental conditions the construction of the reservoir, mainly
conceptual thinking around the include the reservoir’s climate and from dam building. Thus, the net GHG
assessment of the GHG footprint of geographic characteristics, as well as emission from reservoir formation can
reservoirs. In essence, this new particular soil and water conditions be expressed as:
approach seeks to account for only and quality;
landscape changes that result in a net Net GHG emissions =
• the temporal evolution of GHG [Post-impoundment GHG balance]
change, either positive or negative, in
emissions over the entire lifetime of – [Pre-impoundment GHG balance]
GHG emissions. The approach has also
the reservoir; – [Emissions from the reservoir due to
led to the development of a new model
and online tool that allows users to • emissions that would have occurred unrelated anthropogenic sources]
estimate GHG emissions from reservoir elsewhere in the natural system + [GHG due to construction]
formation. This is the outcome of the regardless of the presence of the
reservoir; and
Finally, the G-res tool allocates sustainable energy and sustainable The G-res tool seeks to address this by
emissions to the various purposes of water systems is crucial. By recognising enabling the estimation of the global
the reservoir. Many reservoirs serve the different services offered by GHG footprint of reservoirs and for
multiple purposes, including water reservoir creation, the tool allows for hydropower. Its development coincides
supply, irrigation, hydropower, flood improved GHG accounting of the with the revision of GHG reporting
control, environmental management related human activities. criteria by the IPCC, which will be
and pollution control. Reservoirs published in 2019.
The G-res tool could have a significant
facilitate other activities such as
impact on the decision-making process In addition, new sustainability and
navigation, fisheries and recreation, and
around new freshwater reservoirs. Until environmental criteria are currently
also provide surface areas for other
recently, inland waters were considered being developed for the provision of
forms of energy generation such as
a negligible component of the global green bonds and other forms of climate
floating solar PV.
carbon cycle, but recent research has finance. Using the new conceptual
Even in reservoirs that include identified that rivers and streams are approach, a more accurate GHG profile
hydropower as a purpose, a reservoir hotspots in the carbon cycle for GHG of reservoir formation can be included.
can provide baseload power or provide emissions. Inland waters have a GHG As a result, GHG reporting on existing
grid support through peaking storage flux to the atmosphere similar in assets, or for decision-making on site
or other ancillary services. The G-res magnitude to that absorbed by oceans selection for new projects, can put
tool allocates GHG emissions to the or terrestrial land. Given the global hydropower projects on a level playing
various uses of the reservoir. This importance of natural systems, it can be field with other renewable energy
highlights why recognising the expected that man-made inland waters resources for access to premium
importance of reservoirs for both will come under increased scrutiny. markets and ‘green’ investments.
This presents new and innovative large issuances from the likes of This poses a significant challenge for
funding sources for hydropower project Hydro-Québec. This figure only gives hydropower’s future involvement in the
financing; however, such opportunities part of the picture though, as it market, and highlights the importance
will only be grasped with continued excludes bond issuances involving large of the sector being heavily engaged
sector engagement shaping their hydropower plants (deemed as greater with those organisations seeking to
development. than 20 MW) located in tropical zones. assess and develop criteria that certify
This is due to concerns over methane its climate compatibility. In an effort to
An emerging success story is the rapid
emissions, which has brought into prevent ‘greenwashing’ as the market
growth of green bonds. These are
question their green credentials. develops, these standards will become
fixed-income loans created to
more harmonised and integrated into
specifically finance projects that help Such concerns have unfortunately
how green bond issuances are
address and reduce environmental and/ contributed to a binary approach of
structured and promoted.
or climate risks. Over USD 80 billion of ‘small hydro is good, large hydro is bad’.
labelled green bonds were issued in This, however, fails to recognise that In June 2016, the CBI launched the
2016, nearly doubling the previous year, hydropower projects, unlike most other Hydropower Technical Working Group
but the market is still in its infancy. forms of energy sources, are unique, to begin the process of developing the
with site-specific characteristics. It also criteria for the screening of climate-
According to the investor-focused
excludes the wider benefits that compatible hydropower.
not-for-profit Climate Bonds Initiative
multipurpose reservoirs provide, such
(CBI), the green bond market will need to Developing criteria for hydropower
as using their storage capabilities to
reach USD 1 trillion of investment per Bringing together a host of experts
contribute to even higher levels of
year by 2020 to be compatible with the from NGOs, government and academia,
mitigation through the provision of
Paris Agreement. While initially led by the working group is taking a robust
firming capacity for other forms of
multilateral development banks and the science-based approach to developing
renewable energy. Furthermore,
corporate sector, Poland became the first the criteria. The working group is
hydropower projects offer the ability to
country to issue a green sovereign bond drawing on the substantial work that
strengthen resilience and adaptation
in late 2016, raising USD 750 million. This the Hydropower Sustainability
services through appropriate water
was followed by France in January 2017, Assessment Protocol has undertaken in
management.
raising USD 7.5 billion. Other countries developing international good practice
including Sweden, Nigeria and Kenya are We are already seeing negative guidelines for the sector in promoting
expected to quickly follow suit. outcomes play out, with a number of sustainable hydropower projects.
green bond issuances excluding all Reliably estimating reservoir emissions
Challenges for the hydropower sector
large hydropower investment. Among allocated to hydropower is another
As a mature renewable technology,
these is Poland’s green sovereign bond, complex task, which is being guided by
hydropower has already benefited from
which excludes projects greater than the G-res tool. The tool was developed
a third of the USD 130 billion energy-
20 MW, presenting these alongside coal, by UNESCO in conjunction with IHA and
related unlabelled green bonds issued
natural gas and palm oil. several research institutes worldwide.
to date, as compiled by the CBI, led by
The working group is looking to In addition, the CBI’s criteria will address The draft eligibility criteria are expected
establish a simple and transparent climate resilience through a set of to be released in mid-2017 for public
climate mitigation screening process measures to be incorporated into the consultation. The working group will
that could first apply a power density development of hydropower projects. revisit the criteria following feedback
threshold (W/m2 reservoir surface area) This is being informed by work the World from industry and other stakeholders.
for prospective projects. If required, Bank is undertaking to develop The Climate Bond Standards Board will
projects would then have to comply guidelines for designing resilient projects then review the criteria before they can
with an emissions threshold (gCO2/ that are safe, reliable and can also be used by the market.
kWh) using the G-res tool, which would provide adaptation services. Finally, by
Hydropower has a significant role to
take into account the multiple uses of incorporating aspects of the protocol,
play in achieving the goals of the Paris
many reservoirs. In certain the group is developing criteria to ensure
Agreement. Supporting the growth of
circumstances further site-specific that projects demonstrate a strong
the green bonds market is an important
testing could be undertaken when appreciation of key non-climate-related
step towards aligning emission
projects do not meet these criteria. environmental and social impacts.
reduction targets with appropriate
market signals and incentives.
Climate finance was a key topic of discussion at COP22, the United Nations clmate change conference in Marrakech, Morocco, November 2016
The rapid growth of variable renewable energies (VRE) such as wind power and
solar PV in recent years is increasing the need for rapid-response energy storage
technologies. The landscape for grid-scale energy storage is evolving from being
almost exclusively supplied by pumped-hydropower storage to include a
number of new technologies. Of these, battery storage is evolving and growing
at a rapid pace, even as pumped hydropower storage continues to supply over
95 per cent of energy storage requirements worldwide.
It is widely recognised that the sub-hourly, hourly, daily and seasonal absorbing excess power at night and
transition towards cleaner and more scales. Some capacity is kept in reserve feeding it back to the grid during peak
sustainable energy systems will require in case a power station or transmission daytime hours.
a significant increase in power system line unexpectedly goes offline. Thus,
However, as growth in nuclear has
flexibility. Flexibility in this context non-baseload stations require quick
stagnated, and more and more variable
refers to the ability of a power system responses, which is often provided by
renewables are connected to power
to maintain a reliable and continuous plants that are online but working
grids, the shifts in supply and demand
service when faced with potentially below their full potential. This allows for
are becoming more dynamic in
rapid changes in supply or demand. a quick response, but decreases the
magnitude and time. Solar power
Augmenting power system flexibility efficiency of the entire system, which
available during daytime can vary
can be achieved by a variety of options, inevitably increases the overall system
subject to cloud cover and rainfall, while
including: supply-side improvements, cost of operation.
fluctuations in wind speeds throughout
demand-side management, increased
Increasing the proportion of VREs the day can create more supply-side
transmission networks, increasing
inherently reduces the flexibility of a fluctuations. While traditional pumped
system efficiencies and the provision of
power system. High penetration of VREs storage systems were used to ‘time-
added energy storage. This article
into an existing energy system will in shift’ electricity production to optimise
focuses on energy storage and explores
effect will introduce more variability on power production, i.e. charging
the different but potentially
the supply side, while also displacing (pumping) at night when excess
complementary roles of emerging
existing flexible technologies. Electricity low-cost electricity was available and
utility-scale battery storage systems
storage technologies act as both supply generating during the peak hours,
(BSS) and more established pumped
and demand in the system, adding storage systems may now be required
hydropower storage systems (PHS).
flexibility, and so have the potential to to cycle multiple times in a day, or
In the traditionally fossil-fuel dominated increase the system’s overall efficiency remain offline for long periods,
power systems, flexibility has been and reduce overall costs. depending on weather conditions.
almost solely controlled by the supply
Currently, PHS remains the primary Thus, the landscape for energy storage
side. The existing fleet of power stations
technology used to provide energy is changing with each added megawatt
is operated to react to variations in
storage services on the grid scale. PHS of solar and wind, allowing alternatives
demand. Baseload power is typically
first saw commercial use in the early to pumped storage to enter the market.
supplied by run-of-river hydro, coal and
20th century and experienced a surge According to the Global Energy Storage
nuclear, which are encouraged by virtue
in new capacity beginning in the 1970s Database, traditional PHS-dominated
of their technical and economic nature
and 1980s as a reaction to energy storage systems have mainly been used
to have continuous operation. Rapidly-
security concerns, and to balance for time-shifting (arbitrage) of electric
responding generation such as
baseload power produced from nuclear energy (85.2 per cent), to take
hydropower with storage capacity and
and coal-fired power plants. At that advantage of pricing differentials
gas- or oil-fired power plants are
time, PHS allowed for the constant and between on-peak and off-peak periods.
capable of meeting load variations at
efficient baseload generation, typically As variable renewables reduce
opportunities for arbitrage, new This means that BSS are well suited to storage technologies to 2030 later in
technologies are fast emerging, offering managing power quality. In addition, 2017 exploring these issues in detail.
an increased range of flexibility BSS do not have the same site-specific
At the same time, the growing use of
applications aimed at integrating requirements as PHS, allowing them, for
electric vehicles represents a potential
variable renewables into the system. example, to couple with variable
additional source of flexibility with the
renewable technologies at source and
PHS systems are evolving to provide right market arrangements, as their
mitigate fluctuations before power is
additional operating flexibility to on-board batteries could be used by
sent to the grid.
balance fluctuations in the system. In the grid. Although not their primary
traditional PHS, power regulation is Hybrid systems have been developed in role, the scale of their deployment
only available when generating, many locations where PHS facilities are means they could become an
however, variable-speed PHS systems operated jointly with VRE systems to importance source of flexibility. The
are being implemented to increase balance the intermittency of the global electric vehicle fleet reached a
plant efficiency and flexibility by variable generation source directly total size of 1.2 million vehicles
allowing for power regulation in both though the operation of the PHS plant. (including both battery electric vehicles
pumping and turbine mode. Ternary For grids with very weak and plug-in hybrid vehicles), with an
systems, consisting of a motor- interconnections, or isolated grids, such estimated total battery capacity of
generator and separate pump and as island systems, such fluctuations 20–40 GWh, and a total electricity
turbine set, can allow for simultaneous could be much more damaging. This demand of 2.5 TWh in 2015.
pumping and generating, which allows service is particularly suited to batteries
There is little doubt that both pumped
for even finer frequency control. given the need for rapid, quick charging
hydropower storage and battery
and discharging.
Battery storage systems (BSS) are storage will play a fundamental role in
currently one of the fastest-growing BSS are emerging as an increasingly future energy systems. As more battery
electricity storage technologies, and are important large-scale storage option technologies are developed and
now capable of providing both off-grid and have grown exponentially over the variable-speed PHS technology
and grid-scale storage. The proportion past ten years. One of the key drivers of becomes more advanced and
of total installed battery capacity at this growth has been its rapidly affordable, both forms of energy
nearly 2 GW at the end of 2016 is still far decreasing costs and favourable policy storage can be utilised optimally to
less than the total pumped storage settings, potentially mimicking the meet the ever-growing need for energy
capacity, currently at around 150 GW. rapid growth seen in the solar PV storage. The changing characteristics of
industry. According to the International power systems, brought about by
From a technological perspective,
Renewable Energy Agency (IRENA), it is growing VREs, provides new
batteries are a mature technology;
estimated that prices will continue to opportunities for electricity storage
however, significant cost barriers
fall rapidly until 2030, with cost declines technologies, which by their own part
continue to impede the full integration
of 50 per cent or more to be expected can also play a significant role in
of BSS into the power sector. BSS and
for most battery technologies. Most of restructuring current energy systems. In
PHS systems essentially operate in the
the cost reductions are expected to be its Roadmap for a Renewable Energy
same manner. BSS, however, have faster
driven by rapidly growing economies of Future, IRENA estimates that 150 GW of
response times, but typically cannot
scale, and innovations that reduce costs battery storage and 325 GW PHS is
sustain that power output for extended
and further increase performance. required to double the share of
periods of time.
IRENA will release a report examining renewable power generation by 2030.
the market and cost outlook for battery
The Victoria reservoir in Kandy, Sri Lanka, which provides 210 MW of installed power capacity and irrigation water for the surrounding land
can in some cases result in competition Protocol, a tool that promotes and guides hydropower reservoirs. It is clear that
over regional water uses. However, in this more sustainable hydropower projects. It appraisal of the benefits becomes
context, hydropower reservoirs also offer covers a wide range of topics including necessary in order to optimise the
a sustainable water supply when water is climate change along with environmental, reservoir operation in a more efficient
scarce. Thus, in the research arena, some social and economic dimensions. and sustainable way.
methodologies like water consumption
The World Water Council together with The way forward is better guidance on
by volume allocation and water stress
EDF presented the SHARE Concept, a how to allocate water, land and energy
indices have been proposed.
framework based on the principles of among multiple stakeholders solving
Following the World Commission on shared responsibilities, shared risks and competing uses. If built in the right place
Dams recommendations, a multi- rights, and shared costs and benefits in and with the right equity share, such
stakeholder forum developed the order to achieve the successful multipurpose reservoirs can contribute to
Hydropower Sustainability Assessment implementation of multipurpose achieving the SDGs.
developments to the south, while CASA-1000, a new electricity transmission A master-plan for the EAPP was derived
enabling bilateral trade opportunities system to connect all four countries, using existing national power
for export and providing import would help make the most efficient use development strategies. The original
capability for reliability in low-water of the hydropower resources in the master-plan published in 2011 estimated
conditions. Central Asian countries by enabling them that with a USD 4.5 billion investment in
to transfer and sell their electricity interconnections, USD 25 billion in net
To take advantage of future export and
surplus during the summer months to the revenue could potentially be generated
import opportunities, Manitoba Hydro
deficient countries in South Asia. The through increased opportunities for
and Minnesota Power are co-operating
CASA-1000 project would also power trading, as compared to individual
on building a new 500 kV
complement the countries’ efforts to national development programmes. By
interconnection between Canada and
improve electricity access, integrate and optimising generation investments away
the United States. The line is anticipated
expand markets to increase trade, and from fossil fuels and towards
to enter service in 2020, coincident with
find sustainable solutions to water hydropower supply, the net benefit
the in-service date of the new hydro
resources management. increased to USD 32 billion.
station at Keeyask (695 MW).
Eastern African Power Pool (EAPP) Cross-border interconnections between
The existing interconnections to the
In East Africa, more than 200 million the countries of the EAPP reduces fuel
USA have a capability of 2,000 MW.
people are without electricity, costs, while improving the security of
Building the new interconnection will
accounting for around 80 per cent of its energy supply in the system, allowing
increase that capacity to almost
population. Ethiopia, Kenya and countries to optimise domestic energy
3,000 MW, giving Manitoba Hydro the
Uganda are among the most populous sources and compensate for potential
ability to concentrate the delivery of
countries in the region, and have the seasonal variability or fuel shortages.
surplus energy during the on-peak
largest populations both with and
hours rather than in the off-peak hours. To incentivise the development of
without access to electricity.
regional interconnections in East Africa,
South and Central Asia: CASA-1000
East Africa, much like the rest of Africa, there are a number of issues that must
Kyrgyzstan and Tajikistan are two
exhibits a diverse range of economic be addressed:
countries in Central Asia endowed with
and energy sector development.
some of the world’s most abundant • Removing the up-front risk to
Regional interconnections can enable
hydropower resources with run-off from investment by ensuring that projects
hydropower development in East Africa,
the mountain ranges filling the rivers in are configured for optimal system
and in order to meet the rapidly growing
the summer. Both of these countries and national benefit, and that the
electricity demand, African governments
have a surplus of electricity during this selected projects have the best
have collectively recognised the need
summer season. strategic fit.
for effective and integrated regional
Nearby in South Asia, Afghanistan and planning and interconnections. • Fostering greater regional
Pakistan suffer from chronic electricity cooperation between local and
While bilateral agreements exist national governments.
supply shortages while trying to keep
between some neighbouring
pace with a fast-growing demand for it. • Implementing better policy for
jurisdictions in the EAPP, power
Pakistan cannot meet its citizens’ incentivising regional development,
exchange over existing regional
electricity needs, especially during the cross-border energy sharing and
interconnections has not been
summer months, leading to frequent reduced regulatory risk.
optimised, and often marred by failed
power outages, with a significant
contractual obligations due to local
impact on the economy. Meanwhile,
system deficits.
millions of people still live without
electricity altogether.
The civil infrastructure of hydropower with a fleet of aging assets reaching the Challenges for hydropower O&M in Africa
facilities can last for a century or more, end of their useable life, compounded
At a recent workshop hosted by World
whereas mechanical and electrical by an aging workforce to complete this
Bank Group and SECO (Swiss State
components may require replacement work on time and on budget.
Secretariat for Economic Affairs) in
in less than 40 years, depending on the
Common strategies employed in Martigny, Switzerland, stakeholders
operating role of the hydropower plant.
developed countries include from a broad cross-section of the
Baseload plants with minimal daily load
implementing remote operation at older hydropower community gathered to
variation can operate over a longer time
facilities, installing real-time asset discuss O&M challenges, with a specific
frame than plants operated to meet
monitoring systems, maintaining key focus on developing a better
peak load requirements and frequency
spare components on-site to reduce understanding of the main O&M
control operations, where significant
outage time and other solutions to challenges in several countries in Africa
start-stop operations may be required.
minimize O&M costs. Asset managers are including Cameroon, Uganda, Rwanda
The operation and maintenance of increasingly turning to digitisation for and São Tomé.
hydropower facilities is particularly implementing sophisticated risk-based
A number of common O&M issues were
challenging when the owners of aging decision-making tools to optimise their
observed consistently across all of these
facilities are faced with strategic asset near-term and long-term O&M asset
African countries. In all cases, there was
replacement and/or refurbishment management plans for maintaining,
a preponderance of insufficient training
decisions. For example, in North overhauling or replacing the most critical
on best practices in O&M and a lack of
America, a significant proportion of the components of their fleet.
knowledge-sharing across the
existing fleet of hydropower
In less developed areas of the world hydropower sector. In most of these
mechanical and electrical equipment is
including many countries in Africa, African utilities, there was no formal
reaching its life expectancy. For this
South Asia and South America, a unique maintenance optimisation programme
reason, project owners are often facing
set of challenges for operating and in place to prioritise maintenance
difficult economic decisions between
maintaining hydropower assets exist. around available budgets and staff
overhaul and replacement.
Often, developing nations face resources, to target the most critical
In developed countries with significant institutional challenges such as a lack of components requiring maintenance,
hydropower assets such as Canada, the training to operate and maintain often resulting in extended forced
United States, Norway and Iceland, facilities, lack of dam safety outages and lost revenue.
basic O&M practices such as regular enforcement and compliance, limited
Many African countries are dealing with
inspections for cavitation damage on access to spare parts and lack of
inadequate financial resources to
turbine blades, stator and rotor financial support.
procure spare parts for critical
windings, bearings and excitation
Beyond these challenges, other regional components requiring replacement,
systems, are based on well-established
issues can add an additional level of often lacking the appropriate tools to
guidelines and are generally carried
complexity to their O&M challenges, put forward a business case for
out under a scheduled work
including climate extremes (droughts mitigating these preventable forced
programme. The key challenge facing
and floods) and sedimentation outages by purchasing spare parts to
project owners and operators is
problems which can compromise keep on site. Insufficient financial
developing an optimised asset
conventional O&M practices. support is also a barrier to countries
management strategy that targets
having the capacity to undertake any
safety and maximises unit availability;
major rehabilitation or refurbishment.
Another common theme among resulted in separate power dispatching developing long-term O&M plans, to
African utilities is a loss of production between Ruzizi I and Ruzizi II. optimise efficient management of
revenue associated with sub-optimal water supply, minimise erosion and
In many countries in Africa, there is an
operating strategies, resulting in lost reduce sediment problems.
absence of a regulatory framework to
revenue from inefficient unit operation • Implementing a long-term strategy
monitor safety of hydro infrastructure
and spilled energy, ultimately for O&M is essential, including (where
and in particular a lack of enforcement
impacting funds available for ongoing possible) the inclusion of long-term
around dam safety guidelines.
maintenance. For example, in a case O&M contracts, and a well-planned
study of the Sanaga River complex in In order for African countries to O&M programme to motivate staff
Cameroon, operational issues such as progress in terms of building the and methodologies in place to
inconsistent, poorly defined operating capacity and knowledge to implement invoke capacity building.
rules and a lack of basin management successful O&M practices into their
• Better communication between the
strategies have resulted in increasing respective hydropower facilities, good
asset owner and stakeholders
sedimentation of the reservoir. practice guidelines need to be
responsible for corporate social
developed with the assistance of
In specific cases, political interference responsibility and emergency
hydropower operators from developed
and cross-border disputes have severely preparedness is necessary to
countries, to ensure that the following
restricted the utility’s capability to carry understand the financial and
O&M practices can be adopted:
out optimal O&M practices. In Rwanda, economic attractiveness of a good
the different legal status of two existing • Hydropower stations should be O&M programme.
hydropower plants (Ruzizi I and Ruzizi II) operated within the context of the • A policy that addresses the need for
and the recent creation of a new management of the entire watershed standardisation of equipment is also
authority for water management of the (considering both upstream and needed.
Kivu Lake and the Ruzizi River have downstream impacts) when
The Ruzizi I hydropower plant on the Ruzizi River, bordering Rwanda and DR Congo
Hydro dams have traditionally been designed around the life-of-reservoir concept,
providing storage to offset 50 to 100 years of sedimentation. However, original
designs often fail to address what happens to the reservoir after losing capacity
due to sediment deposition. While decommissioning is an option, it is not only
costly but most owners want to sustain benefits from their existing infrastructure.
Sustainable sediment management, process, it can be accelerated as much as Revegetation is typically the most
according to the World Bank definition, a hundredfold by human activities that important and sustainable element of
“seeks to maintain long-term reservoir disturb the soil, such as deforestation, watershed management. For example,
capacity, retarding the rate of storage loss agriculture, mining and urban the Water and Land Resource Centre’s
and eventually bringing sediment inflow development. Climate change is generally watershed management strategies in
and discharge into balance while expected to increase sediment yield due Ethiopia, including gully rehabilitation
maximising usable storage capacity, to greater frequency of extreme events and vegetated graded soil bunds, have
hydropower production, or other benefits”. responsible for most erosion and been successful in reducing surface
sediment transport. In glaciated runoff and soil loss.
Sediment issues
catchments, the retreat of ice uncovers
In the hydropower sector, sedimentation This not only reduces reservoir siltation,
highly erodible sediments at elevations
can result in loss of power supply but also delivers additional benefits, such
too high to be stabilised by vegetation.
reliability, intake obstruction and the as reduced flooding. Sediment inflow can
entrainment of coarse sediment which Sediment management strategies also be reduced by constructing
abrades hydro-mechanical equipment. The application of different sediment upstream dams, but this will only be
For ecosystems in the downstream river, management strategies is driven by a effective for as long as upstream
dam construction dramatically reduces wide range of factors, including: reservoirs have capacity remaining to
the flow of sediment over the period that hydrology, land use, vegetative cover, and store sediment.
the reservoir accumulates sediment. the variation in sediment yield over time
Sediment routing
and space within the catchment; reservoir
However, managing a reservoir to achieve Techniques that sustain sediment in
size, geometry, operating rules and types
a sediment balance often implies motion, minimising deposition within the
of beneficial use; configuration of outlets
reloading the downstream river with reservoir, are classified as ‘routing’. Routing
at the dam; environmental constraints
sediment, following many decades of strategies are considered environmentally
and downstream users that may be
sediment-starved clear water releases. This friendly because they seek to maintain the
impacted by sediment release; and
can lead to a variety of sediment natural rate and timing of sediment
financial considerations.
management issues and impacts transport along the river.
downstream. However, without proper Available sediment management
These techniques include reservoir
sediment management, once the reservoir strategies can be classified into four main
drawdown during periods of high
has lost its capacity, the sediment inflow groups: reducing sediment inflow;
sediment flow (e.g. monsoon), in order to
and outflow will again come into balance, routing sediment through or around the
pass sediment-laden flows through the
inevitably reloading the channel below reservoir; sediment removal; and
reservoir at high velocity and minimise
the dam with sediment. strategies to adapt to sedimentation.
deposition. It can also involve bypassing
From this perspective, sediment Reducing sediment inflow sediment-laden flood events around the
management may be seen as an attempt Sediment inflow can be reduced through storage pool, either by placing the
to reestablish natural sediment flows along watershed management, which reduces storage pool off-channel or using a
the river, while preserving storage capacity. erosion. There is typically a wide range in bypass tunnel.
soil erodibility within watersheds, and the
Sediment sources For example, Alpine reservoirs, like Solis in
most effective management will normally
Sediment deposited into reservoirs is Switzerland, receive much of their
focus on those areas producing the most
derived from upstream erosion of soil and sediment load during short-duration
sediment per unit of land area, and where
river banks. While erosion is a natural flood events. The Electric Power
management can be most effective.
Company of Zurich (EWZ), which operates Adaptive strategies enables dam owners and their consultants
the Solis dam, constructed a 170 m3/s There are also many adaptive strategies to better understand the dynamics of
sediment bypass tunnel to redirect that do not directly handle sediment but sediment generation and transport in their
sediment-laden flood flows around the that help adapt to the sediment. In specific case, and use this to identify and
storage pool to minimise sediment hydropower reservoirs, intake implement the most appropriate sediment
accumulation. modification and use of abrasion- management strategies.
resistant turbine runner coatings to
Sediment removal Case study guidance
combat increasing abrasion are two
Dredging and flushing are the most IHA is assisting the project Analysis of the
examples being employed with
common approaches to removing Impact of Sedimentation on Dams and
increasing frequency.
reservoir sediment deposits. Dredging is Reservoirs: Case Studies, funded by the
technically feasible in any reservoir, Sediment management in hydrologically World Bank. This study will contribute to
although it can be very costly and is large storage reservoirs, especially identifying and documenting case
therefore often not financially feasible. reservoirs with a storage volume greater studies that demonstrate a variety of
Flushing, on the other hand, is primarily than mean annual inflow (capacity: inflow sediment management practices across
applicable to smaller and relatively ratio >1), present a particular problem. different geographies and
narrow reservoirs, where the narrow These sites typically trap virtually all methodologies.
channel scoured out by flushing inflowing water and sediment, leaving
The project seeks to gather information
constitutes a significant part of the little excess water for sediment release.
on ‘things that worked’ as well as ‘things
reservoir volume.
In these cases, strategies may focus on that didn’t work’. Because each strategy
As a first approximation, the bottom width reduction of sediment inflow, has its limitations, it is particularly
of a flushing channel will be similar to the optimisation of the operating rule to important to understand the situations in
width of the pre-impoundment river maximise the benefit from available which specific strategies were considered
channel. In the high-rainfall mountain area storage volume, or heightening the dam either successful or unsuccessful, so that
of Costa Rica, the 100 MW Cachí reservoir to increase storage, thus extending the entire dam and hydropower
is subjected to empty flushing most years, reservoir life. Density current venting is a community can better understand their
scouring and releasing sediment through routing technique that may be respective strengths and limitations, and
a low-level outlet, thereby preserving successfully applied in large reservoirs employ them with ever greater levels of
capacity and maintaining the power intake where conditions allow. Also, as large confidence and predictability.
free of sediment. reservoirs lose capacity through
Because multiple strategies are often
sedimentation, they eventually become
At the 150 MW Patrind hydropower used, an individual site may have
‘small’ reservoirs, at which point
project in Pakistan, sediment routing and experienced different degrees of success
management techniques appropriate for
removal strategies have been designed to with each of the strategies implemented.
hydrologically smaller reservoirs may
operate in a complementary manner. These case studies will be featured at
become viable.
Coarser particles will be redirected www.hydropower.org.
through a sediment bypass tunnel during In summary, there are a wide range of
flood events to minimise accumulation, strategies that can be used, either alone or
and flushing through low-level outlets in combination, to transition from
will be used to remove the remaining non-sustainable to sustainable use of dams
sediment that becomes trapped and reservoirs. A common need at all sites
upstream of the dam. is for adequate monitoring data, which
The protocol provides a methodology The option of developing and endorsing days.
for a sustainability assessment of a lower-cost option for an official
The draft template and options around
hydropower projects across more than assessment was discussed at meetings
it will be discussed by the protocol’s
20 sustainability topics, encompassing of the protocol’s multi-stakeholder
multi-stakeholder governing body.
environmental, social, technical, governing body in December 2016 and
Further templates may then be
financial and economic aspects. It rests February 2017. IHA was asked to develop
developed for the implementation and
on a multi-stakeholder-agreed the proposals further.
operation stage tools of the protocol.
definition of basic good practice and
In addition, although the protocol The new templates would then be
proven best practice for each of the
provides a definition of sustainable available for discussion at the biannual
topics, and provides accompanying
hydropower, and includes some meeting of the Hydropower
definitions and guidance (in the
guidelines, it is presented as a Sustainability Assessment Council,
‘assessment guidance’ sections in each
methodology for assessment and which meets alongside the World
topic, and in other parts of the protocol,
scoring, and the guidance it contains is Hydropower Congress in Addis Ababa
such as its glossary).
for completing an assessment. There is in May 2017.
Since its launch at the World no widely recognised document
International industry good practice
Hydropower Congress in Iguaçu, Brazil, providing a guideline on international
guidelines
in 2011, the protocol has been applied industry good practice. IHA’s
The templates would be complemented
across developed and developing Sustainability Guidelines, launched in
by a guideline document on basic good
regions of the world, and is increasingly February 2004, have been considerably
practice. (This in turn would be
used in a variety of ways, for capacity- superseded by the protocol and global
complemented by a series of case
building purposes in developing industry practice.
studies of proven best practice as part of
countries, and as an internal reference
The use of guidelines on good practice is the ‘better hydro’ initiative, which IHA is
guideline.
widespread in other industries: for developing with World Bank financing.)
Stakeholders recognise demands for example, World Bank environmental,
The guideline will be based on the
focused assessment health and safety (EHS) guidelines for a
definitions of basic good practice in the
However, feedback from a number of wide range of sectors refer to ‘good
protocol, the accompanying definitions
sources indicates that the cost of a full international industry practice’ (GIIP). The
of terms and guidance, additional
official assessment using the protocol World Bank Group has not published an
guidance developed for capacity-
may be inhibiting its uptake. There are EHS sector guideline for hydropower.
building purposes by IHA in recent years,
demands from sources such as the
Tools to drive further uptake and the practice observed through
Climate Bonds Initiative (CBI) for a more
IHA is now developing an initial numerous protocol assessments to date.
focused, lower-cost assessment. As
template for an assessment using the
such, a tool to assess the environmental It would build on the experience
preparation stage tool of the protocol.
and social sustainability of hydropower developed by accredited assessors in
It will focus on basic good practice, and
offers the opportunity to harness bonds official protocol assessments to date,
environmental and social topics only.
finance for the underpinning of and make this experience publicly
The intent is that such an assessment
sustainability standards in the industry. available. The intention is that the
could be completed within 20 to 30
The site of the Kabeli A hydropower project in Nepal, which undertook a protocol assessment in September 2014
Maps
Analysis
Ecuador48 Ethiopia56
Tanzania57
Malaysia76
21
14
Key
26
1 Country rank
20
99 MW and below 16
100 MW to 999 MW 24
3
1,000 MW to 10,000 MW
7
2
Over 10,000 MW
18
17
19
36 30
35 31
8
13 25 15 42
39
29
1
27
23
9
11
38 6
32 4 37
34
33 40 28
10
22
12
41
Rank Country Capacity added (MW) Rank Country Capacity added (MW) Rank Country Capacity added (MW)
702
201
Installed capacity in GW
164
223
595 166
493 457
34
1,497
106
3
12
13 8
6 15 11
14 16
7
18
9 10 17
Key
4
1 Country rank 5
200 MW to 1,999 MW
2,000 MW to 10,000 MW
Over 10,000 MW
1 2 3 4 5 6
UNITED CANADA MEXICO COSTA PANAMA GUATEMALA
STATES 79,323 12,092 RICA 1,726 1,154
102,485 2,123
2
13 11
12
3
7 1
10
Key
9
1 Country rank 4
200 MW to 1,999 MW
2,000 MW to 10,000 MW
Over 10,000 MW
1 2 3 4 5 6
BRAZIL VENEZUELA COLOMBIA ARGENTINA PARAGUAY CHILE
98,015 15,393 11,606 11,170 8,810 7,055
SOUTH AMERICA
CAPACITY BY COUNTRY
Rank Country Installed hydropower
capacity (MW)*
1 Brazil 98,015
2 Venezuela 15,393
3 Colombia 11,606
4 Argentina 11,170
5 Paraguay 8,810
6 Chile 7,055
7 Peru 5,271
8 Ecuador 4,409
9 Uruguay 1,538
10 Bolivia 494
11 Suriname 189
12 French Guiana 119
13 Guyana 1
South America was strongly affected by construct and operate the 352 MW 56 MW, including Renovandes H1 (20
the El Niño Southern Oscillation (ENSO) Porvenir II after six years of feasibility MW) and the Potrero (20 MW).
in 2016, with less precipitation in the studies and environmental impact
In Bolivia, the state-owned Empresa
north in Colombia and Venezuela, where assessments. Isagen has four projects
Nacional de Electricidad (ENDE)
reservoirs could not be filled to optimal totalling 2,841 MW undergoing
manages the generation, distribution
storage capacity, and increased feasibility studies, and EPM is building
and transmission of energy in the
precipitation in the south in the Peruvian the 2,400 MW Ituango hydroelectric
country, and supports the change in the
Amazon, Ecuador and Bolivia. project, expected to enter into
energy mix towards more renewable
operation in 2018.
With more than 9.7 GW of new energy sources and the extension of the
hydropower installed in 2016, South The Venezuelan hydropower sector is national electric interconnected system.
America has incremented more than facing a lack of adaptation measures to In 2015, hydropower only represented
triple the capacity commissioned in deal with the effects of climate change 30 per cent of Bolivia’s electricity mix:
2015. Approximately 65 per cent of the to weather patterns. The Guri reservoir the country aims to increase this to 70
new capacity corresponds to projects in regulates the flow that supplies the per cent by 2025.
north-west Brazil, while Peru and cascade hydropower complex in the
Currently, Bolivia has three hydropower
Ecuador brought a significant number Caroní river that represents 70 per cent
project under construction: Miguillas
of projects into operation. of the national power supply. This is
(203 MW), San Jose (124 MW) and
one of the largest hydropower
Hydropower is key to South America’s Misicuni (120 MW); and over 20 projects
generating complexes in the world,
development, and thus it is at the core undergoing feasibility studies, such as
formed by the 10,235 MW Simón
of the national energy strategies of Rositas (400 MW), Carrizal (347 MW) and
Bolívar, the 2,160 MW Francisco de
countries like Bolivia, Ecuador, Margarita (150 MW). The National
Miranda (Caruachi), the 3,150 MW
Paraguay, Chile and Brazil. Electric Plan – 2025 also envisions large
Antonio José Sucre (Macagua), and the
projects such as the 990 MW Cachuela
Colombia reached a total capacity of 2,160 MW Manuel Carlos Piar (Tocoma)
Esperanza and the 1,680 MW Bala
11,606 MW, which represents 70 per hydropower station, which is currently
stations in the Beni River, and the Río
cent of the national electricity grid, under construction.
Grande hydroelectric complex with a
after the commissioning of the 820 MW
Peru’s growing electricity demand due total capacity of 2,882 MW.
Hidrosogamoso hydroelectric project,
to the new mining projects is driving an
and the 10 MW Bajo Tuluá in 2015 and Uruguay has already developed all its
increase of installed power capacity. In
20 MW Tunjita stations in 2016. viable hydropower potential, which
2016, the 456 MW Chaglla plant by
during the last decade has represented
The ENSO effects and the suspension at Odebrecht, and the 510 MW run-of-the-
50–80 per cent of the energy mix. This
the beginning of 2016 of the 400 MW El river Cerro del Águila plant by IC Power,
variation is due to the annual volume
Quimbo project due to non-compliance started commercial operations, as well
variation strongly associated to the
with the environmental oxygen level for as smaller hydropower plants such as
precipitation regime. The National
Magdalena River increased the risk of a Chancay (19 MW), the Rucuy (20 MW)
Water Plan, published in August 2016,
power outage. To address this risk, in and the Carpapata III (13 MW).
envisions a potential 10 per cent
April 2016 the government introduced a
In 2016, the ministry of energy and hydropower generation increase by
six-week programme to encourage
mining of Peru finalised a detailed upgrading existing plants and
households to save energy. With this
study to determine the wind and developing multipurpose plants. In
measure, Colombia saved 1,200 GWh –
hydropower potential to foster the order to increase resilience and diversify
about a 6 per cent saving daily. In
private investments in the energy the energy mix, Uruguay is fostering the
addition, the 560 MW Guatapé power
sector. Among the future projects, development of wind power. Since
plant began its operation also in April
Tractebel has been awarded a contract 2006, the wind farms for large-scale
after the fire that shut it down in
to upgrade Peru’s largest generating generation have 1,227 MW of installed
February 2016.
asset, the 1,000 MW Mantaro capacity, increasing to 95 per cent the
Colombia plans to further develop its hydropower plant. Smaller-scale electricity provided from clean energy.
hydropower potential and expand projects include the construction of six
In 2016, Yacyretá, shared between
transmission lines. The company Celsia hydropower plants in the Áncash
Argentina and Paraguay, exceeded
received the environmental license to region with a total installed capacity of
Brazil has the largest hydro resources in Jirau is part of a hydroelectric complex on Small hydropower plants, defined in
South America, with an estimated the Madeira River. The Santo Antônio Brazil as lower than 30 MW, comprised
technical potential of 3,040 TWh/yr. run-of-river plant is located downstream 203 MW added capacity in 2016.
However, less than a third, about 818 of the Jirau plant with a total capacity of
Hydropower provides services to
TWh/yr, is considered economically 3,568 MW. The third project,
support the intermittency of increasing
exploitable, of which Brazil has already Guayaramerín, will be located on the
wind and solar power installations in
exploited over half. On top of that, plants border between Brazil and Bolivia, and
Brazil. The state-owned Energy Research
with a capacity of less than 30 MW are the fourth, Cachuela Esperanza, will be
Company identified new potential
estimated to have an economically located further upstream in Bolivia. The
hydroelectric projects that could add
exploitable capacity of 11.2 TWh/yr. complex is framed on the Initiative for the
50.7 GW of energy storage to the
Integration of the Regional Infrastructure
During 2016, 9,526 MW was added to the national interconnected system to
of South America (IIRSA), an initiative to
national electricity grid, the highest value reduce the fragility of the grid to climatic
build an infrastructure network by South
in the historical records since 1998. The variations. In addition, Brazil is
American national governments, to
hydropower sector represents 55 per investigating new technology to
satisfy both increasing energy demands
cent of this total. However, the recent increase the resilience of the energy
and navigational interests.
recession experienced by Brazil’s system, and has invested in floating solar
economy caused a slowdown in During 2016, other highlights of pilot projects at the Balbina and
electricity demand growth. The demand hydroelectric generation are the increase Sobradinho reservoirs.
in 2015 and 2016 remained practically of commercial operation from the
In 2016, ANEEL granted new operating
unchanged compared to that of 2014, existing plants: 652 MW entered into
licences for 29 existing hydropower
mainly driven by the fall in industry operation in Santo Antônio, 1,092 MW in
plants with a total installed capacity of
consumption. In 2017, Brazil expects to Teles Pires, and 518.8 MW in Maranhão III.
6,000 MW. China Three Gorges
increase installed hydropower capacity
Belo Monte, the second largest Corporation’s Brazilian subsidiary, CTG
by about 4,000 MW.
hydropower development in Brazil, Brasil, successfully bid for the highest lot
In December 2016, the 3,750 MW Jirau activated its first turbines in April 2016 formed by Jupiá and Ilha Solteira in the
hydropower project, located on the and by December 2016, Belo Monte river Paraná (1,551 MW and 3,444 MW
Madeira River in the state of Rondônia, already had 1,989 MW in commercial respectively) for about USD 746 million.
close to the border with Bolivia, was operation. Located on the Xingu River in CTG paid USD 2.81 billion to the Brazilian
inaugurated. The plant is operated by the state of Pará, it represents the largest Government for that concession right. At
Energia Sustentável do Brasil, where 100-per-cent national development, the end of the year, CTG Brasil
Engie is the largest shareholder. The with a total installed capacity of 11,233 completed the acquisition of Duke
project is certified by the Clean MW, with 24 turbines divided into two Energy assets in Brazil with 2,274 MW,
Development Mechanism of the United powerhouses. increasing its installed capacity in the
Nations for the commercialisation of country to 8.27 GW.
carbon credits.
Chile has been one of Latin American’s Maule and Bío Bío regions, where the isolated renewable energy projects, an
fastest-growing economies over the past plants export production to Santiago. interconnection between the SING and
decade. As it continues to grow, it is The National Energy Strategy (ENE) has SIC lines will be finalised in 2017,
expected that Chile’s energy demand will targets for 45-48 per cent of electricity providing a larger market for the high
increase from roughly 75 TWh today, to generation to be sourced from concentration of solar energy in the
over 100 TWh by 2020. The country will hydropower by 2024. The strategy also north to the most populated central
have to add over 8 GW of new generation estimates that Chile’s hydro energy regions around Santiago.
capacity by 2020 in order to meet the potential could easily exceed 12.5 GW.
The Chilean Government has
expected expansion in demand.
Chile also aims to promote the implemented the 100 Mini Hydro Plan in
Chile has struggled to exploit its sustainable development of hydropower order to develop 100 additional small-
abundant supply of natural resources or including through new environmental scale hydropower plants each with a
encourage adequate development of the legislation and land-use planning in river total installed capacity of under 20 MW
power sector in order to satisfy the rate of basins. In 2016, the ministry of energy by 2018. The projects will be
economic growth. This is predominantly launched an online platform, predominantly distributed between
due to the lack of connection between “Hidroelectricidad Sustentable”, to Metropolitana and Aysén in order to
the power system grids and lack of critical publish information from the study of meet energy demand in areas outside of
investments. As a result, the country is hydropower potential of several river the country’s main transmission
facing high energy prices as well as an basins in central-southern Chile. Overall, networks. As mini-hydro developers
absence of energy supply and security. in order to further encourage the must often build their own transmission
deployment of renewable energy lines, lack of sufficient transmission
The country has an abundance of natural
sources in Chile, substantial investments infrastructure remains a significant
resources ideal for harnessing renewable
are required in the transmission system. challenge in Chile.
energy sources, including vast deserts
for solar power, forests and rivers in the Chile’s electricity transmission system is New projects commissioned in 2016
south for biomass and hydropower, and divided into four sections. The SING include the 60 MW El Paso run-of-river
winds across the country for potential (Sistema Interconectado del Norte facility in the Colchagua province, which
wind generation. The country also has Grande) is the northern grid, and will provide electricity to the central SIC
6,400 km of coastline where tidal and accounts for roughly 20 per cent of grid. Another notable project in
wave power could potentially be national generation. The SIC (Sistema planning is the 300 MW Espejo de
harnessed. In 2014, the Chilean Interconectado Central) is the central Tarapacá pumped storage plant. The
Government facilitated the region’s grid, which accounts for 68.5 hybrid project proposes to combine
establishment of MERIC (Chile’s Marine per cent of national generation and hydropower and solar power. The
Energy Research and Innovation Centre) serves 93 per cent of Chile’s population. pumped storage system will use the
for further research and development of The remaining two systems in southern Pacific Ocean as a lower reservoir, and
marine projects off the Chilean coast. Chile – the Aysén grid and the the natural depressions in the overlying
Magallanes grid – contribute 0.3 and 0.8 plateaus as an upper storage reservoir.
There is currently a total of 7,055 MW of
per cent respectively. In efforts to The project is still in the process of
installed hydropower capacity in Chile.
connect the grids together, and with reaching financial close.
The majority is concentrated in the
A decade ago, Ecuador was highly government estimates this will save not suffer any damage and continues to
dependent on fossil fuel production for millions of USD by not importing fossil supply power to the national grid. The
power generation, with thermopower fuels to operate thermopower plants, and USD 2.25 billion project was 70 per cent
plants accounting for about half of energy will also reduce CO2 emissions. financed by the Chinese Exim Bank and
production. Fossil fuels also represented built by the Sinohydro Corporation. It is
Within the framework to eradicate
almost the half of the exportations from the largest hydroelectric project in
poverty, promote sustainable
the country. About 40 per cent of the Ecuador, and the largest built by China
development and equitable redistribution
population had a subsistence livelihood, overseas, meeting 30 per cent of total
of resources, Ecuador now leads in
and rural and indigenous populations domestic electricity demand with a
promoting energy security in the region.
faced a lack of access to electricity. In mean annual generation of 8,734 GWh.
2006, hydropower represented 44 per The grid has also been strengthened by
The Sopladora hydropower project, the
cent of energy production with 1,640 MW more than 2,000 km of transmission lines
third largest in Ecuador, was completed
installed capacity. and an increase of transformative
in August 2016. At a cost of USD 755
capacity by 74 per cent in one decade. In
Ecuador took the decision to exploit its million, the project was 85 per cent
order to connect the new hydropower
hydropower potential, estimated at financed by the Chinese Exim Bank and
plants to the national electricity grid,
more than 20,000 MW, to reduce the built by a Chinese consortium. The
600 km of high-voltage 500 kV
country’s reliance on fossil fuel and station is part of the Hydropaute cascade
transmission lines are under
foster economy growth. Hydropower is scheme in the Paute River, located in the
construction. They connect four
crucial in the government’s strategy to south-east. Sopladora relies on the water
substations: one in the north-east, close
change the energy mix, increase energy discharged by the upstream 1,075 MW
to the 1,500 MW hydropower plant Coca
security and reduce energy cost. hydroelectric plant Molino. Three Francis
Codo Sinclair; two in the centre close to
turbines with a power of 487 MW will
Framed in the National Plan for Good Quito and Tisaleo; and one in the
supply an average annual generation of
Living 2009–2013, the most important south-west in Guayaquil, increasing the
2,770 GWh to the national grid, meeting
milestone was the decision to begin the supply reliability to the country’s major
about 13 per cent of energy demand.
simultaneous construction of eight demand centres. Power generation,
hydropower projects that will increase distribution and commercialisation are Five other hydropower projects from the
the total capacity by 2,832 MW. Ecuador managed by the state-owned company government’s strategic plan are in an
aims to have one of the cleanest energy CELEC (Electric Corporation of Ecuador). advanced stage of construction. They are
mixes in the world by generating 90 per spread across the country, and CELEC
Ecuador’s most emblematic hydropower
cent of its energy from hydropower once plans to start their operation in 2017.
project, the 1,500 MW Coca Coda Sinclair
all the plants are in full operation in 2017. These include Minas San Francisco (275
plant, went into full operation in
MW), Toachi-Pilatón (254 MW),
With these eight hydroelectric projects, November 2016. The first four Pelton
Delsitanisagua (180 MW), Quijos (50 MW),
Ecuador will be able to satisfy the national units started to generate electricity in
and Mazar-Dudas (21 MW).
domestic energy demand and export April just three days before the 7.8
surplus energy to Colombia and Peru. The magnitude earthquake. The plant did
31
21 3
29
25 6
37
18 41
32 8 1
35 16 10
38
39
14
26 22 15 12
40 23 4
28
36
Key 17
1 Country rank
11 19
199 MW and below 41
5
200 MW to 1,999 MW 7
13 24
2,000 MW to 9,999 MW 20
27 33
33
Over 10,000 MW
30
2
1 2 3 4 5 6
ETHIOPIA S. AFRICA EGYPT DR CONGO ZAMBIA SUDAN
4,054 3,583 2,800 2,509 2,392 2,250
AFRICA
COUNTRY RANKINGS
Rank Country Installed hydropower Rank Country Installed hydropower
capacity (MW)* capacity (MW)*
A lack of power infrastructure, especially Cameroon looks to be on track, with Generation began in early 2016 at
in sub-Saharan Africa, is hindering the Sinohydro expected to commission the Zambia’s 120 MW Itezhi-Tezhi
region’s economic and social 211 MW Memve’ele project in summer hydropower project on the Kafue River.
development. Over 30 African countries 2017. The China International Water and The project installed two 60 MW
are currently experiencing power Electric Corporation began impounding turbines at the existing dam, which
shortages, resulting in outages and water at the 30 MW Lom Pangar project regulates water for the 900 MW Kafue
over-reliance on expensive and often in 2015, attracting new fishing Gorge power stations some 200 km
environmentally unfriendly temporary settlements in 2016. Commissioning of downstream. The project is supplying
solutions. There are encouraging signs electromechanical equipment is Zambia’s capital Lusaka through a newly
though, with greater involvement from scheduled for 2018. constructed 280 km transmission line.
the private sector through various policies The line also connects the power station
Morocco approved its first three
and programmes injecting substantial to the Southern African Power Pool,
hydropower projects by an independent
capital into local power industries. reducing electricity prices and the
power producer in late 2016. This follows
region’s reliance on fossil fuels. The
While the traditional approach has been a 2015 policy to promote private sector
project was the first public–private
to increase generation capacity, engagement in developing renewable
partnership in the Zambian power
countries are tending to cooperate more energies. Tillouguit Aval (30 MW) and
sector, between Zesco, the Zambian
to improve energy access. Greater Tillouguit Amont (8 MW) are located on
power utility, and India’s Tata Power.
regional integration through the Ahancal River, while Boutferda (18
transmission interconnectors and shared MW) is on the Laabid River in the Middle Three hydropower projects were
power pools is enabling countries to Atlas mountain range. completed in Sierra Leone in 2016,
maximise the benefits of abundant, yet totalling 5 MW. Bankasoca (2.2 MW),
Zimbabwe completed the third and final
unevenly distributed, natural resources. Charlotte (2.2 MW) and Makali (0.64 MW)
hydro project along the Pungwe River in
Greater transmission can help alleviate were delivered in cooperation with the
2016. The 3.75 MW Pungwe C project was
temporary shortfalls in production and Chinese Hunan Construction
commissioned in March 2016, harnessing
further monetise surpluses. Engineering Group as part of the
the power of the Chiteme river, a
government’s push to boost
The African region added over 3 GW of tributary of the Pungwe river. The two
decentralised power production to
new hydropower capacity in 2016, other projects, Pungwe A (2.7 MW) and
improve energy access in rural
including commissioning the 1,332 MW Pungwe B (15 MW), were commissioned
communities. While the projects have
Ingula pumped storage project in South in 2010 and 2015 respectively.
been completed, considerable work
Africa. Ethiopia completed the
The Tokwe Mukorsi dam in Masvingo remains to be done to improve the
commissioning of the final eight turbines
was completed after 15 years of work, transmission and distribution system.
of its transformative Gibe III project.
and construction began on the 15 MW
Liberia reached an important milestone
In 2016, Cameroon commissioned the hydropower station. The station will
with the reconstruction of the 88 MW
final two 5 MW turbines at the Mekin bring further benefits to the dam, which
Mount Coffee hydropower project after
project, which began producing now has the capacity to irrigate 26,000
the first 22 MW turbine was commissioned
electricity in 2015. The country reached hectares of land as well as delivering
in late 2016. The project was originally
further important milestones in 2016. other economic advantages. Other
commissioned in 1973 but was destroyed
The government was able to confirm projects in the pipeline include the 30
during the civil war in the 1990s.
EDF and IFC’s cooperation and financial MW Gairezi project, for which an EPC
commitment on the 420 MW Nachtigal contract was signed in 2016, and the The Rwanda Mountain Tea company
hydropower plant on the Sanaga River, proposed 2,400 MW Batoka Gorge, completed its second hydropower
which upon completion in 2021 should shared with Zambia. Both are currently station in as many years, finalising work
increase Cameroon’s total installed seeking funding. The first stage of the on the 4 MW Giciye II project on the
capacity by more than 30 per cent. This extension of the Kariba hydropower Giciye River. This project falls within the
will help relieve chronic power shortages station should add a further 150 MW to government’s policy to increase private
and meet the country’s goal of 3,000 the southern power station by the end sector engagement in renewable energy
MW total installed capacity by 2020, up of 2017, while a further 150 MW is development. The Rwandan
from the current 1,400 MW, over half of expected in 2018. Government supported the project by
which is hydropower. constructing access roads and building
transmission lines to connect the power Uganda, a member of the EAPP, is Eastern Africa suffered from a drought
station to the grid. Giciye II was able to currently looking to double power in 2016 which reduced hydropower
take advantage of the infrastructure generation by harnessing its generation in the region. Ugandan
built around its 4 MW sister Giciye I plant, hydropower resources. The Isimba hydropower reservoirs were able to
and there are plans for a third Power Station (183 MW) is expected to adjust to this shortfall by obtaining
hydropower station. As part of the East be complete in 2018, while the 600 MW permission to release some 10 per cent
African Power Pool (EAPP), Rwanda is Karuma project is scheduled for 2019. more water for power generation,
scheduled to begin importing 400 MW This would increase the country’s total reducing the need to replace power
of power from Ethiopia and 30 MW from installed hydropower capacity to greater deficits with expensive diesel-fired
Kenya by the end of 2017. than 1,500 MW. generation.
DR Congo announced that the first of Uganda plans to export a portion of this
three 50 MW turbines would begin hydropower to the other countries of the
generation at the 150 MW Zongo 2 EAPP, which is currently constructing
project in summer 2017. Meanwhile, work over 2,000 km of transmission lines and
was completed on the Mwadingusha cross-border interconnections. These are
project, the first of three hydro plants expected to be completed in various
undergoing upgrading and stages between 2018 and 2020.
modernisation. It will supply an
additional 11 MW to the national grid,
bringing total installed capacity to 71
MW. Modernisation work will now begin
on the Koni (36 MW) and Nzilo 1 (100 MW) HYDROPOWER TARGETS
projects. The 9.3 MW Kakobola project in
Kwilu province was also commissioned
Country Target
after three years of construction.
Construction has resumed on Gabon’s
FE2-Mitzic (36 MW) and Empress Angola 9,000 MW total installed capacity by 2025
Ngounié Falls (84 MW) projects. This is Ethiopia 22,000 MW total installed capacity by 2030
part of the country’s target to increase
its national power installed capacity Kenya Hydropower to represent 5 per cent of total installed
from 374 MW to 1,200 MW by 2020, with capacity by 2031
the goal of achieving universal access to Morocco 2,000 MW increase in hydropower installed capacity by 2020
electricity. China Gezhouba Group has
stepped in to take over construction Mozambique 5,400 MW total installed capacity by 2025
work after the previous development Nigeria 2,000 MW increase in small-scale hydropower installed
company’s contract was terminated. capacity by 2025
The 128 MW Sambangalou project
currently under construction in Senegal
is set to be connected to the recently
completed 402 MW Kaleta project in
Guinea. This follows an agreement
between members of the Gambia River
Basin Organisation (OMVG). The 1,677
km of transmission lines will improve the
quality of electricity supply for OMVG
countries and create a more stable and
reliable shared power system.
A country blessed with many rivers, in the country is expected to reach close to Further hydropower projects along the
Angola’s hydropower potential is among 4,000 MW, representing roughly 70 per cent Keve River in central Angola have also been
the highest in Africa, estimated at of the total installed power capacity. identified by the government, and include
18,200 MW. This, coupled with increasing Capunda (330 MW), Dala (440 MW) and
In late 2016, the Industrial and Commercial
demand for electricity following years of Cafula (520 MW).
Bank of China signed an agreement with
strong economic growth and urbanisation,
the Angolan Government to grant a loan to Finally, the 65 MW Lomaum hydropower
has placed hydropower development as a
finance the construction of the Caculo plant in Cubal, located in Benguela
central element of the Angolan
Cabaça hydropower project. Located in the province, reopened in 2016 after lying idle
Government’s long-term vision for its
Middle Kwanza, the project is expected to since 1984 due to being heavily damaged in
power sector. The government’s stated aim
take over six years to build and will the country’s civil war that ended in 2002.
is to substantially grow its hydropower
contribute to the power supply security of
generation capacity from its current levels
the domestic market, and that of
of around 1,200 MW to 9,000 MW by 2025.
neighbouring countries that form the
Angola’s hydropower development has Southern African Power Pool (SAPP).
been mainly located on the Kwanza River,
On the Cunene River, in the south of the
the country’s largest river, and includes the
country near the Namibian border, decades
Capanda plant (520 MW) and the
after the initial studies were conducted, the
Cambambe plant, which in 2016 increased
proposed Baynes hydropower project
its capacity from 260 MW to 610 MW
(600 MW) may commence construction in
following the completion of two of the four
2017. A joint Angolan and Namibian
175 MW turbines being constructed at a
initiative, the project would be supported by
second power station. Once fully
a proposed new power transmission line
completed, the Cambambe plant will have
being coordinated by the SAPP, which would
an installed capacity of 960 MW.
further improve the region’s connectivity.
The Kwanza River is also home to several
Other hydropower plants located on the
other hydropower projects either under
Cunene River include Matala (40 MW),
construction or in the planning stages,
which in 2016 underwent a rehabilitation to
including Laúca (2,070 MW) and Caculo
ensure its structural safety and to increase
Cabaça (2,170 MW). The Laúca project,
its production capacity, Gove (62 MW),
which commenced construction in 2012, is
Mabubas (27 MW), Biopio (14 MW) and
expected to begin operations in 2017 and is
Calueque (20 MW). Projects in the pipeline
the largest civil engineering project being
include Jamba ia Oma (65 MW) and Jamba
undertaken in Angola. Once Laúca is fully
ia Mina (180 MW).
operational, installed hydropower capacity
Hydropower currently accounts for sector that has encouraged investor (275 MW), which is located upstream
approximately 32 per cent of total confidence. In order to sustain around the natural falls of the Sassandra
installed capacity in Côte d’Ivoire, and is investments, the energy ministry has River, and has been predominantly
responsible for 16 per cent of total approved higher tariffs, enabling flat supported by Chinese funding. The
electricity generated in the country. The costs for poorer domestic users while project is expected to come online in
country still has a vast amount of raising prices up to 10 per cent for the 2017, a year earlier than anticipated.
untapped resources, specifically largest industrial users. Singrobo (44 MW), which is being
concerning hydropower and solar primarily funded by the African Finance
Developing sustainable energy through
generation. A study by Électricité de Corporation (AFC), is due to come online
renewable and other new sources is one
France in 1980 put the theoretical in 2020. The Gribo Popoli (112 MW)
of the focus areas of the government’s
potential of hydropower at 46 TWh/year, project is due to come online in 2021.
2011–30 Strategic Development Plan.
with an economically exploitable
The government has set targets to reach Regionally, Côte d’Ivoire considers itself
potential of approximately 12.4 TWh.
34 per cent of renewable energy by 2020 as one of the most significant players in
Côte d’Ivoire’s growing economy is and to increase energy efficiency in the pan-regional West African Power
putting the power supply network industry by 25 per cent by 2030. Pool, with further plans for
under pressure, and the government is interconnections to Liberia, Sierra Leone
In its strategic plan for the development
targeting an increase in overall and Guinea currently under
of the electricity sector by 2030, the Côte
generating capacity from 2,000 MW to consideration. Electricity in Côte d’Ivoire
d’Ivoire Government identified 66
4,000 MW by 2020. This growth is is currently exported to Benin, Burkina
projects that will require significant
expected to be reached by using a mix Faso, Ghana, Liberia, Mali and Togo.
private-sector investment, including
of gas-fired generation and hydroelectric
through public–private partnerships
power, and the expansion will be mostly
with independent power producers.
driven by the private sector.
Overall, the country aims to expand
As part of the enhancing private sector generation capacity and modernise the
engagement, foreign investment has nationwide transmission and
been a feature of the Ivorian electricity distribution of electricity.
market for a quarter of a century. This
Côte d’Ivoire’s largest hydropower
dates back to the privatisation that
facilities include projects such as the
created the Compagnie Ivoirienne
Buyo Dam (165 MW), Kossou Dam (174
d’Electricité (CIE), the power supplier and
MW) and Taabo Dam (210 MW), and
distributor at the heart of the sector.
several others. There are also plans to
Eranove, the company that now owns a
build additional dams in Louaga (283
majority stake in CIE, also owns Ciprel,
MW), Boutoubré (156 MW) and Tiboto
one of the country’s independent power
(220 MW). The country is currently
producers. Overall, Côte d’Ivoire has
constructing its biggest hydropower
developed and maintained a vigorous
facility – the Soubré hydropower dam
regulatory framework for the power
For the past decade, Ethiopia’s economy Ethiopia has some of the richest water Downstream from Gibe III, this is the
has been one of the fastest-growing in resources in Africa, distributed across fourth plant in the Omo River cascade
the world, averaging an 11 per cent eight major basins with an exploitable scheme, which envisions a fifth dam
increase in GDP each year. Record GDP hydropower potential of 45,000 MW. further downstream. Other hydropower
growth, coupled with a population Over half of this potential is located in projects in the bidding phase are Tams
growth rate of 2.3 per cent, has led to a the Abbay and Omo river basins, where (1,700 MW), Chemoga Yeda (280 MW),
staggering 14 per cent increase in the nearly-completed 6,000 MW Grand and the Geba complex (385 MW).
energy demand. The country is making Ethiopian Renaissance Dam (GERD) and
PowerChina Huadong Engineering
significant efforts to satisfy demand, the recently-completed 1,870 MW Gibe
Corporation completed the
maintain growth and supply a III project, are located.
rehabilitation – at a cost of
population where currently only 25 per
Gibe III, the tallest roller-compacted USD 14 million – of Ethiopia’s oldest
cent have power connectivity.
concrete (RCC) dam in the world, with hydropower plant, the 6.6 MW Aba
Ethiopia is fast becoming a centre of 246 m dam height and 630 m crest Samuel, which dates back to 1941.
industry and new infrastructure, with length, was inaugurated in December
The GTP-II also envisions exploiting
the aspiration to achieve middle- 2016. The USD 1.8 billion construction
alternative sources such as wind, solar,
income status by 2025. Since 2011, was financed 40 per cent by the
geothermal and biogas resources. The
Ethiopia has implemented the Climate- Ethiopian Government, and 60 per cent
exploitable capacity from other sources
Resilient Green Economy (CRGE) by the China Exim Bank. While all
is estimated at 1.3 million MW (wind) and
strategy, which substitutes turbines have been installed and
7,000 MW (geothermal). The 1,000 MW
conventional development by means of commissioned, not all are yet online, as
Corbetti geothermal power project, with
harnessing clean energy sources like reservoir filling is still in progress.
a cost of USD 4 billion, is expected to be
hydropower, wind, geothermal, solar
GERD’s construction is progressing commissioned in 2018. Currently, the
and biomass, and implementing
according to the timeframe, with more 300 MW Aysha, 100 MW Debreberhan
energy-efficient technologies in the
than half already complete. Sudan, Egypt and 150 MW Itaya wind farms are under
transport and industrial sectors.
and Ethiopia agreed a new declaration development, with others like the
With its 2010 Growth and Transformation for cooperation in March 2016 that alters 100 MW Assela under study.
Plan I (GTP-I), Ethiopia aimed to the 1929 treaty, where Egypt had a veto
Ethiopia is also rapidly expanding its
quadruple installed capacity by over any upstream projects in the Nile
transmission and distribution network in
prioritising large hydro developments River. In addition to GERD’s construction,
order to light up the country. Existing
and achieving total power installed the 254 MW Genale Dawa hydropower
cross-border interconnections include
capacity of 10,000 MW by 2015. The plant is near completion.
100 MW to Sudan and 50 MW to Djibouti,
government published the GTP-II for
Salini Impregilo, the constructor of Gibe while the 1,000 km Eastern Electricity
2016–20, with the objective of reaching
III and GERD, signed a USD 2.8 billion Highway Project (500 kV) will be capable
total installed capacity over 17,208 MW.
contract with EEP in March 2016 to build of exporting 2,000 MW to Kenya upon
Hydropower is set to make up about 90
the 2,160 MW Koysha hydro project. The completion in 2018. The country has
per cent of the power supply.
project is financed between EEP and the ambitions of becoming the ‘energy hub’
Italian Export Credit Agency. within the Eastern Africa Power Pool.
Tanzania has abundant energy sources, operations at the public utility Agriculture is the basis of the Tanzanian
most of which remain unexploited. Hydro (TANESCO) and meet increasing demand economy, representing almost 30 per
has traditionally played a significant role: through low-cost solutions. cent of the national GDP. It is therefore
with an installed capacity of 562 MW, it critical that the country has sufficient
In recent years, the ministry for energy
accounts for roughly one-third of total infrastructure for irrigation in order to
and minerals has established a
installed power capacity. With a hydro support agricultural industry during
framework for developing small power
potential of 4.7 GW, the country plans periods of drought. Hydropower
projects using the country’s abundant
further development, but views weak facilities could be used to store water
renewable energy resources. This aims
transmission infrastructure as a significant specifically so that it can be released
to accelerate access to electricity and
short-term barrier. during periods of drought.
promote the development and
Only 41 per cent of the population has operation of small power projects Recent notable hydropower projects in
access to electricity. Low population among local and foreign private Tanzania include Rusumo Falls (80 MW),
density and expensive transmission investors. Eligible projects are those with which was agreed by energy ministers of
costs have led to the government a capacity ranging from 100 kW to Burundi, Rwanda and Tanzania in 2014.
adopting targeted policies to develop 10 MW, which use a renewable energy In 2016, contracts were awarded for the
off-grid schemes in order to increase the source, and which intend to supply electromechanical equipment and dam
current levels of rural electricity access. commercial electricity to the national facilities, with operation scheduled to
grid or isolated grid in the country. begin in 2019. Supported by the World
In 2016, the Tanzania Rural Electrification
Bank and the African Development
Expansion Project was approved by the One of the first projects implemented
Bank, the project is located on the
World Bank, with USD 200 million in under this initiative, the Tulila
Kagera River along the Rwanda–
funding from the International hydroelectric plant on the Ruvuma River
Tanzania border, and will share its output
Development Association. The in southern Tanzania has since 2015
with, and connect the grids of, Rwanda,
programme will scale up the supply of been delivering 5 MW (with provision to
Tanzania and Burundi.
renewable energy in rural areas while expand to 7.5 MW) of renewable
strengthening sector institutional electricity to a TANESCO-operated The Kikonge project, currently in the
capacity. Overall, the Tanzanian power mini-grid, which supplies the remote planning process, will store water to be
system master-plan aims to achieve 75 per Ruvuma region. The region was released during periods of drought. The
cent access by 2035, compared to 41 per previously dependent on diesel- project comprises a dam across the
cent today. This will require a seven-fold generated power. The project, Ruhuhu River, forming a reservoir of
increase on the current rate of installed developed by the African Benedictine 6 billion m3, capable of generating
capacity in order to satisfy demand. Sisters convent, reliably produces and 300 MW. The pre-feasability study is
sells excess electricity to the state- partially funded by the African
The Tanzanian Government’s Big Results
owned energy supplier. This in turn Development Bank. A high-voltage
Now (BRN) initiative seeks to phase out
generates long-term income for the transmission line, an irrigation scheme
high-cost emergency power plants,
convent’s charitable work, including a and an agro-business development are
increase total generation capacity from
kindergarten, schools with roughly 1,400 also planned as part of the project.
1,300 MW to 2,780 MW, reform
schoolchildren and an orphanage.
35
23
40 1 14
6
44
43 25
31
34 12 37
41
8 20
27
21 18
29 36 9
2
7 38
5 10
26
22 16
17
39 19
3 42 15
11 4 33 32 28 30
24
13
Key
1 Country rank
200 MW to 1,999 MW
1,999 MW to 10,000 MW
Over 10,000 MW
1 2 3 4 5 6
NORWAY FRANCE ITALY SPAIN SWITZERLAND SWEDEN
31,626 25,405 21,884 20,354 16,657 16,419
EUROPE
CAPACITY BY COUNTRY
Rank Country Installed hydropower Rank Country Installed hydropower
capacity (MW)* capacity (MW)
As European countries aim to transition to a Europe in particular there are highly Another driver for hydropower
more secure, affordable and decarbonised developed hydropower markets, for development in the Western Balkans is the
energy system, adopting climate and example in the Caucasus region. These are services reservoir storage can offer to assist
energy targets for 2020, 2030 and 2050, open to investment for modernisation and the region to adapt to climate change, for
hydropower is poised to play a central role. expansion of existing assets to secure example in providing solutions for flood
more efficient and sustainable operations. protection and freshwater for irrigation and
In 2016, the total installed hydropower
In northern and western Europe, the municipal use. Flooding accounts for a
capacity in Europe amounted to 223 GW.
industry is moving towards modernisation major share of natural disasters in the
Several countries have already put forth
and expansion of existing assets, in an region, often with catastrophic trans-
even more ambitious targets for the
effort to secure more efficient and boundary effects on lives, properties and
following decades, including further
sustainable operations in the region. economic productivity in the region –
penetration of variable renewable sources
Latvian state utility Latvenergo, for emphasising the requirement for improved
such as wind and solar power. As a
example, is presently engaged in a USD coordination throughout the region.
consequence, the power system will face
214.5 million upgrade programme of its
more generation-driven fluctuations. In Portugal, the Frades variable-speed
hydropower facilities.
These fluctuations will have to be dealt pumped-storage plant (760 MW) will bring
with through flexible generation, storage The Western Balkans still represent a the total installed capacity of the Venda
options and interconnectors. significant portion of untapped European Nova complex up to 1,058 MW, and will be
hydropower potential. Efforts are being used to support frequency stabilisation in
Renewable energy represented 29.6 per
made to strengthen regional cooperation the local grid. The Foz Tua station (263
cent of the European energy mix in 2016,
between the European Union and Albania, MW), located on the Tua river in the
of which 10.7 per cent came from
Bosnia and Herzegovina, Kosovo, northern region, will come online in 2017.
hydropower. It is the most flexible and
Macedonia, Montenegro and Serbia. In In 2016, Iberdrola Generación awarded the
consistent of the renewable energy
2016 the European Union commissioned a electro-mechanical equipment and
sources, offering baseload capability,
regional hydropower master-plan for the penstocks for the new PSPP Gouvães to
storage capability and grid stabilisation by
Western Balkans, which will aim to define Andritz Hydro (4 x 220 MW reversible
meeting peak and unexpected demand.
how to develop the region’s hydropower pump turbines and motor generators).
Flexible hydropower can play a major role
potential in a way that balances energy Gouvães, part of the Alto Támega
in European energy objectives by enabling
generation, flood protection and hydropower scheme, is expected to be
the increased penetration of intermittent
ecological concerns. online in the early 2020s.
renewables into the power grid.
Efforts are being made to work towards a Plans for the Swansea Bay Tidal Lagoon
Furthermore, storage hydropower,
regional market for electricity, which will (320 MW) are powering through in the UK,
including pumped storage, offers a range
also facilitate renewable energy and if approved by the government, the
of ancillary services, which can further
production. By expanding and connecting project is expected to come online in 2021.
enable the increased penetration of
the market, new interconnections could It has been estimated that the tidal lagoons
fluctuating renewable energy sources
improve energy security, increase could supply more than 10 per cent of the
across the region. In addition, investment
efficiency and reduce costs. nation’s electricity. Major delivery partners
in new pumped-storage technologies such
include GE and Andritz Hydro. Several
as variable speed pump-turbines as well as In 2016, a EUR 12 million EU grant was
small-scale run-of-river projects came
ternary systems is growing. However, the announced, which will support the
online in 2016 in Scotland, including Cia Aig
high penetration of variable renewables is construction of the first electricity
(3 MW), Leacann (1 MW) and Lochy (2 MW).
also significantly affecting peak pricing, interconnector between Albania and
making pumped storage systems less Macedonia, and grid efficiency The Reisseck II pumped-storage project in
profitable. Certain mature markets will improvements to the infrastructure of Austria was commissioned in summer
require market reforms to adequately MEPSO, the national electricity transmission 2016. The project, which has been under
compensate pumped storage services. system operator. The project is part of the construction since 2010, is part of an
European Commission’s initiative to extended group of power stations; Malta
In 2016 an estimated 2,500 MW of pumped
establish an east–west electricity and Reisseck in the Reisseck/Kreuzeck
storage capacity was planned or under
transmission corridor between Bulgaria, mountain range has an expected peak
construction, mostly concentrated in
Macedonia, Albania, Montenegro and Italy. generating capacity of 430 MW.
France and Spain up until 2020. In eastern
With the highest annual electricity demand efficiency of existing plants and to strong potential to play a significant role in
and generation, Germany has the largest minimise ecological impacts. The historical the German energy transition.
power system in Europe. Furthermore, its influence of German hydropower Nevertheless, improved prediction of wind
energy system is interconnected with ten technology is far-reaching, as a substantial power and implementation of intelligent
countries with a total transfer capacity of share of hydropower plants worldwide are energy management systems may reduce
more than 20 GW. German and European based on technology and expertise from the need for further large-scale pumped-
energy systems are heavily intertwined, Germany; from project development, to storage plants, ensuring relatively low
and the sheer size of the German power the delivery of components and complete feed-in tariffs.
system has undoubtable influence on its systems right through to business
A notable innovative project under
European neighbours. management and maintenance.
development is the Naturstromspeicher
Under the German Energiewende (energy Currently, several new hydropower projects project, a hybrid wind and pumped-storage
transition), the country aims to generate 35 totalling approximately 2,770 MW are under plant consisting of a 13.6 MW wind farm and
per cent of electricity from renewables by development, and were expected to come a 16 MW pumped-storage system, where
2020, and 80 per cent by 2050. In order to online by 2020. However, due to current the bases of the wind turbines act as the
integrate the increasing amount of variable market and policy conditions, some upper reservoirs. The hybrid system is
renewable energy from wind and solar, the projects have been postponed or cancelled, designed to guarantee a firm power output
country is now looking towards increasing such as Waldeck II (extension of 300 MW) and balance short-term fluctuations.
capacity in north–south transmission lines and Atdorf (1,398 MW). Nevertheless,
Geographically, Germany lies close to
as well as an intensified electricity trade notable needs in modernisations and large
countries with large hydropower storage
with other EU countries and with better overhauls may be performed in the next
facilities. With interconnections to these
demand-side and energy storage years in several other stations.
countries, such as Norway and Sweden to
management, interlinked with battery
The use of pumped storage plants in the north, and Switzerland and Austria in
storage and pumped-storage hydropower.
Germany and in neighbouring countries, the Alpine region to the south, this external
Hydropower installations (including such as Vianden (1,296 MW) in hydropower supply provides balancing
pumped storage) account for a share of Luxembourg and COO I and II (1,164 MW) in opportunities and additional flexibility to
around 6 per cent of installed capacity in Belgium, already support the German the German power system, particularly by
Germany at roughly 11,300 MW (including energy transition by storing excess facilitating the increased penetration of
1,244 MW of shared storage hydropower electricity from variable renewables other renewable and highly volatile energy
with Austria), and with approximately sources, while providing back-up electricity sources such as solar and wind.
22,000 GWh for about 3 per cent of the net for Germany. Pumped-storage hydropower
electricity generation. provides peak load capability, storage
capability, grid stabilisation and further
Germany has a highly developed and
ancillary services to a power system. It also
saturated hydropower market. Investment
remains the only form of electricity storage
is primarily focused on refurbishment and
that is available on a large scale and at a
modernisation to increase the lifespan and
competitive cost, therefore providing
A country well known for its high mountain projects. Some of these projects can polar circle: Smilberg (33 MW) and
plateaus, abundant natural lakes and steep involve including new catchment areas or Storavatn (36 MW) are scheduled for
valleys and fjords, Norway’s topography increasing the size of the reservoirs and commissioning in 2019.
lends itself perfectly to hydropower turbines to accommodate increased
The Norwegian power system benefits
development. Indeed, hydro provided the inflow. One such modernisation and
from an integrated, open electricity
basis for the nation’s industrialisation in the extension project is the Nedre Rossaga
market (Nord Pool) shared with the
late 19th century, and remains the station, which was completed in 2016. In
neighbouring countries Sweden,
backbone of its power system. addition to modernising the existing
Denmark, Finland, Estonia, Lithuania and
turbines, a new power station with an
Hydropower regularly accounts for more Latvia. The Nordic system is also
additional turbine unit was installed,
than 95 per cent of total Norwegian power interconnected with a number of other
increasing total installed capacity from 250
production, with the small remainder made countries via high-voltage direct current
MW to 300 MW. This is part of Statkraft’s
up by thermal and, only recently, wind. At (DC) transmission lines. DC connections
USD 1.95 billion investment for upgrades
the end of 2016, Norway’s inland waters exist from Sweden to Germany and
of its domestic hydropower assets.
powered over 31 GW installed capacity, Poland, as well as a recently completed
producing 144 TWh of clean power. It The introduction of renewable energy interconnector to Lithuania. Norway also
marks the highest annual hydropower certificates in 2003, and the merging in has a DC line to the Netherlands and
generation ever recorded in Norway, which 2012 of the Norwegian and Swedish Russia, while Finland is connected to
has been attributed in large part to very certificate markets, has resulted in a boom Estonia and Russia. The Norwegian TSO
high rainfall throughout the year. of smaller-scale (in this case 10 MW or less) Statnett has been granted licence to build
hydropower projects throughout Norway. interconnectors to Germany and the UK,
Despite hosting a mature and established
Investors were able to quickly identify each of 1,400 MW to be commissioned in
hydropower sector, Norway plans to
opportunities after the Norwegian Water 2018 (Germany) and 2020 (UK).
continue to develop its hydropower
Resource and Energy Directorate
resources in the near future. The current This extent of interconnectors provides
published country-wide mapping for
average age of hydropower and dam ample export opportunities for Norwegian
potential sites in 2004. Over 350 small-
infrastructure in the country is around 46 hydropower. In 2016, taking advantage of
scale hydropower projects have been
years; this is triggering refurbishments and record-breaking hydropower production,
commissioned since 2003, and the
upgrades through the country, as well as Norway’s net power exports reached 16.5
number is expected to grow up until 2020,
environmental improvements. The terms TWh, roughly 10 per cent of total domestic
when the certificate scheme ends.
of operation in about 430 hydropower production. In addition, Norway and the
licences may be revised before 2022, Norway commissioned 35 new UK recently announced plans to build the
increasing the standards for hydropower stations in 2016, totalling 154 world’s longest submarine high-voltage
environmental impacts. MW. Notable projects include the 27 MW cable for the export of Norwegian
Govddesaga station, which was hydropower to the United Kingdom, and
As a result of climate change, the country
commissioned in the summer of 2016. there are plans to export Norwegian
is currently experiencing an increase in
There are also two notable projects hydropower to Germany as well.
average inflow feeding its river systems,
currently under construction within the
adding a further incentive for extension
7
10
3 20
6
13
17
8 4 15
19 18
5
14 12
16
Key 1
1 Country rank
200 MW to 1,999 MW 11
2,000 MW to 9,999 MW
Over 10,000 MW
1 2 3 4 5 6
INDIA RUSSIA TURKEY IRAN PAKISTAN TAJIKISTAN
51,975 48,086 26,249 11,196 7,320 5,190
1 India 51,975
2 Russia 48,086
3 Turkey 26,249
4 Iran 11,196
5 Pakistan 7,320
6 Tajikistan 5,190
7 Kyrgyzstan 3,091
8 Iraq 2,753
9 Kazakhstan 2,282
10 Uzbekistan 1,731
11 Sri Lanka 1,629
12 Bhutan 1,615
13 Syria 1,505
14 Nepal 867
15 Afghanistan 442
16 Bangladesh 230
17 Lebanon 221
18 Jordan 12
19 Israel 7
20 Turkmenistan 1
The reservoir at the 1,200 MW Toktogul hydro project on the Naryn River (Kyrgyzstan), which is currently undergoing rehabilitation and upgrade
9
2
1 5
11
14
12 10
15 3 13
6
Key
1 Country rank
8
16
199 MW and below
200 MW to 1,999 MW
17
19
2,000 MW to 9,999 MW 18 20
10,000 MW to 100,000 MW 4
Over 100,000 MW
1 2 3 4 5 6
CHINA JAPAN VIETNAM AUSTRALIA S. KOREA MALAYSIA
331,110 49,905 16,306 8,790 6,471 6,094
1 China 331,110
2 Japan 49,905
3 Vietnam 16,306
4 Australia 8,790
5 South Korea 6,471
6 Malaysia 6,094
7 New Zealand 5,346
8 Indonesia 5,305
9 North Korea 5,000
10 Laos 4,818
11 Chinese Taipei 4,683
12 Thailand 4,510
13 Philippines 4,235
14 Myanmar 3,140
15 Cambodia 1,267
16 Papua New Guinea 234
17 Fiji 125
18 New Caledonia 78
19 French Polynesia 47
20 Samoa 12
Led by China, the East Asia and Pacific In Myanmar, following a model adopted help to reduce power prices and deliver
region continues to have the largest in Laos, the International Finance greater energy security for a country
share of global installed hydropower of Corporation established the heavily dependent on diesel-powered
all six regions. China alone accounts for Hydropower Developers’ Working Group generation. Further decisions on
almost one-third of global hydropower to provide hydropower companies and concessional finance for the project are
capacity, and added approximately stakeholders a forum to discuss and expected from the Green Climate Fund,
11.74 GW of new capacity in 2016, address the challenges the sector faces. World Bank, Asian Development Bank
including 3.74 GW of pumped storage, With over 60 per cent of the population and Economic Development
taking its total installed capacity to not having access to electricity, Cooperation Fund of Korea by mid-2017.
331 GW, including 26.7 GW of pumped hydropower is central to achieving the
Finally, in Papua New Guinea, the
storage. Excluding China, an estimated government’s aim of universal access to
proposed 50 MW Edevu hydropower
1.6 GW was added in the region in 2016. electricity by 2030.
project located in the Kairuku-Hiri
The Mekong region continues to witness Elsewhere in East Asia, the 47 MW District was launched in February 2017.
a flurry of activity. In Laos, both the Wampu hydropower plant located on Led by a public–private partnership
69 MW Nam San 3A plant and the 36 MW the Biang River in North Sumatra, between PNG Power Limited and a
Lamphun plant were commissioned in Indonesia was completed in 2016 after Chinese company, PNG Hydro, the
2016, and the first phase of the 1,272 MW four years of construction. Both project should be completed in 2020.
Nam Ou cascade project, including dams Wampu and the 55 MW run-of-river
2, 5 and 6 totalling 540 MW in capacity, Semangka project on the southern tip
was completed. The project is Power of Sumatra (which is scheduled for
China’s first investment in a foreign completion in 2017) have been joint
country, and is a key part of the Chinese financed and developed by a South TARGETS
Government’s ‘One Belt, One Road’ Korean consortium.
initiative, designed to develop closer
In the Philippines, two run-of-river plants Country Target
connections and new economic corridors.
in Manolo Fortich with a combined
The second and final phase of the project,
capacity of 69 MW are expected to be
consisting of Nam Ou 1, 3, 4 and 7, is
commissioned by the end of 2017, and China 40 GW total installed
expected to be completed in 2020.
the 25 MW Lake Mainit project, located pumped storage
The Laotian Government has also in the north-east of Mindanao, remains capacity by 2020
indicated that construction on the under development.
Japan 9.6 per cent of total
proposed 912 MW run-of-river Pak Beng
Japan is set to have its first commercial- power generation to
project may commence in 2017. Located
scale tidal power plant in its waters in come from hydro by
on the upper Mekong, the project is
2018, after the Japanese ministry of the 2030
proceeding according to the 1995
environment selected an international
Mekong Agreement, which involves Philippines 5,394 MW new installed
consortium to build the 2 MW turbine in
close consultation with the capacity by 2030
2016. To be situated in the Naru Strait off
governments of Cambodia, Thailand
Nagasaki, the project will look to develop
and Vietnam under the auspices of the
local skills and expertise in the industry,
Mekong River Commission.
and will help determine whether further
A further 1,095 MW of hydropower tidal power developments will be carried
capacity was added in Vietnam in 2016. out across the country.
The final two 400 MW turbines were
Meanwhile in the Pacific, the proposed
commissioned at the 1,200 MW Lai Châu
20 MW Tina River project located 30 km
plant, which will supply around 4.6 TWh
east of the Solomon Island capital,
of electricity to the national grid every
Honiara, was awarded USD 15 million in
year. The second 265 MW turbine at the
concessional loans by the International
520 MW Huoi Quang plant and the 30
Renewable Energy Agency and the Abu
MW Cốc San run-of-river scheme, both
Dhabi Fund for Development in January
located in the north-west of the country,
2017. The project would significantly
were also commissioned.
Australia has over 120 operating first such project in the world to be intends to achieve it. A review of Australia’s
hydroelectric power stations, with an combined with a 50 MW solar farm which climate change policies is set to take place in
installed capacity of nearly 8,800 MW. will have the potential to power the storage 2017 but the government has already
Despite declining generation in previous plant’s water pumps. indicated that it would not support any form
years due to low rainfall in key catchments, of carbon tax or emissions trading scheme.
With an optimal capacity of 250 MW of rapid
hydropower generation rebounded strongly
and flexible power, the plant would be able to Australia’s renewable energy target of
in 2016, contributing to over half of the
help manage the growth and increasing sourcing 33,000 GWh of electricity from
renewable electricity generated and up to 9
penetration of intermittent forms of large-scale renewable sources in 2020
per cent of the total electricity generated in
renewable energy. Kidston would add to (equivalent to about 23.5 per cent of the
the National Electricity Market (NEM).
Australia’s three main pumped storage plants, expected electricity generated) remains the
The country’s hydropower resources are and given there are roughly 50,000 disused key driver of the country’s transition to a
largely concentrated in the states of mines across the country, this off-river low-carbon electricity sector. In addition, a
Tasmania, which is heavily reliant on hydro solution could be employed elsewhere. number of state governments have separate
for its electricity generation, New South renewable energy targets in place
In Tasmania, months of below-average rainfall
Wales (NSW) and Victoria. The Snowy complemented by a suite of initiatives.
from September 2015 and into the early
Mountains Hydro-Electric Scheme, which
months of 2016 causing record low water Finally, in 2016 the Snowy Mountains
spans both NSW and Victoria, is Australia’s
levels in hydro dams were compounded by Hydro-Electric Scheme, the largest and most
largest hydropower scheme, consisting of 16
an extended outage in the Basslink cable complex engineering project ever undertaken
major dams and nine power stations with a
connecting the state to the NEM. In response in Australia, was honoured with its inclusion
combined capacity of 4,100 MW.
to the severe pressure placed on the state’s on the National Heritage List. Constructed
As the driest inhabited continent on earth, hydro storages, Hydro Tasmania deployed between 1949 and 1974, and built by more
water availability is a key constraint on future several measures including re-commissioning than 100,000 people from over 30 countries,
growth for hydroelectricity in Australia, with a gas-fired power station to protect the state’s the Snowy Mountains scheme joins other
the majority of suitable sites having already energy supply. Australian icons on the list such as the Sydney
been developed. Growth in the sector is Opera House and the Great Barrier Reef. Its
Hydro Tasmania’s storages recovered
expected to be limited to small-scale inclusion recognises the scheme’s significant
strongly from May onwards though, as heavy
hydroelectric projects and upgrading and contribution to the country’s development
rain causing flooding for some catchments
refurbishing existing infrastructure but following World War II.
meant the state ended 2016 recording its
pumped storage may prove to be an
second wettest on record in what was a year
increasingly important component of
of rare and extreme weather events.
Australia’s electricity market.
On the national front, while the Australian
The proposed Kidston pumped storage
Government has ratified the Paris
project in North Queensland is one such
Agreement, having set a 2030 target of
example and its developers are hoping to
reducing emissions by 26 to 28 per cent
secure its financing arrangements in 2017.
below 2005 levels, it remains unclear how it
Using two disused mine pits, it would be the
China has firmly established itself at the The plan emphasises better and integrated development of hydropower, to
forefront of global hydropower planning of China’s energy system in order strengthen international cooperation, and
development. In 2016, the country to make it more efficient and reliable. A to advance the alleviation of poverty.
increased its total installed hydropower major east-to-west transmission expansion
In December 2016, China’s ministry of
capacity by over 11.74 GW to 330 GW, is a key feature of a strategy to bring
water resources adopted ‘guidelines on
representing more than a quarter of the hydropower from inland resource centres
promoting the development of small
world’s total. to load centres on the coast.
hydropower plants’. The document
While new development of domestic The country largely met the ambitious outlines plans to develop and grow the
hydropower has slowed down as most goals set out in its previous five-year plan, small hydropower industry in China by
major sites have been identified and which covered the 2011–15 period; 2030 with a respect to environmental
explored, China still commissioned more however, pumped storage capacity has protection, focusing on technology
new capacity in 2016 than any other not been developed at such a rapid rate as improvements and best practices for plant
country. With the increasing development conventional hydropower. construction, operation and management.
of variable renewables such as wind and
With the required policy frameworks now The document calls for standards to
solar, a strong emphasis is being placed on
in place, the new plan focuses on improve small hydropower management,
increasing pumped storage capacity in
increasing pumped storage capacity, with a system of incentives promoting small
order to improve stability in the grid.
its total volume representing just 1.5 per hydropower installations, and establish a
The most notable of China’s hydropower cent of China’s installed electricity capacity number of small hydropower projects by
fleet under construction is the Wudongde at the beginning of 2016. In order to 2020. China commissioned several new
project on the Jinsha River in the south- address this shortage, the country aims to run-of-river hydropower plants in 2016,
west, which will provide 10.2 GW installed reach 40 GW total pumped storage including: Tongzilin (600 MW), Lizhou (345
capacity when complete (12 x 850 MW capacity by 2020. MW), Huangfeng (225 MW) and Qireha tal
turbines). The project began construction (210 MW).
Implementation is well under way. In 2016,
in 2014, with the first generator scheduled
China commissioned three pumped
to be commissioned in 2018; it is expected
storage projects totalling 3.66 GW – Xianju
to be completed in 2020, and will be the
(1,500 MW), Hongping (1,200 MW) and
sixth-largest hydropower project in the
Qingyuan (960 MW). In addition, the first
world in terms of installed capacity.
batch of units at the 1,500 MW Liyang
China’s 13th five-year plan on energy project came online in August 2016, and
development, covering the period to 2020, the project in on schedule for completion
was officially published in early January in April 2017. Furthermore, over 30 GW of
2017. It outlines a strategy to minimise pumped storage capacity is under
reliance on coal, and achieve a minimum development in China at the end of 2016.
share of 15 per cent non-fossil energy:
The new five-year plan also set outs
specific targets include an additional 60
commitments to emphasise ecological
GW of hydropower.
and environmental protection in the
Hydropower is poised to play an In recent years, the 2,400 MW Bakun especially in rural areas. Their
increasingly important role in meeting plant developed by Sarawak Hidro was development has been incentivised by a
Malaysia’s energy and climate goals. The opened in 2011, becoming Malaysia’s feed-in tariff (FiT) scheme adopted in
share of hydropower in the country’s largest hydropower plant, and this was 2011, which allows small generators to
electricity generation is around 11 per followed in 2015 by Sarawak Energy’s sell electricity to the national utility
cent, but with less than 20 per cent of 944 MW Murum plant beginning full through the grid.
the technically feasible generation operations. Sarawak Energy also
As of January 2017, installed capacity of
potential utilised to date, there is received state government approval for
small hydropower under the FiT scheme
significant expansion already in the its 1,285 MW Baleh project in 2016, and
is 30 MW, with plants in progress
planning stages or under development. there are several other hydro projects in
representing over 200 MW, the largest
the pipeline which could represent a
Most of Malaysia’s electricity generation share of all renewables.
further 4 GW of new capacity.
capacity is natural gas-fired and coal, but
As well as contributing to a more
the government is seeking to achieve a It is forecasted that 60 per cent of
balanced energy mix, hydropower
more balanced portfolio of electricity Sarawak’s power generation is to be
development is fundamental to the
generation over the coming years to sourced from hydropower by 2020, up
Malaysian Government’s efforts to
meet its growing demand and reduce its from 35 per cent in 2012. Electricity
reduce its greenhouse gas emissions
dependency on fossil fuels. This has exports to the Indonesian province of
intensity of GDP by 45 per cent by 2030
benefited Malaysia’s hydropower sector, West Kalimantan already under way, and
relative to 2005 levels. The government
which has in the past largely been further plans are also in place to export
is confident of reaching the target,
concentrated in Peninsular Malaysia, but to both Brunei and Sabah by 2025.
claiming it had already recorded a 33 per
due to its high rainfall and geography,
Tenaga Nasional Berhad (TSB), the cent reduction by the end of 2015.
the state of Sarawak on the island of
country’s largest utility company, also
Borneo is expected to experience the The government’s target will be further
recently completed the construction of
lion’s share of new developments. supported by the purchasing of up to
two plants in Peninsular Malaysia – the
100 MW of hydroelectricity from Laos,
In 2009, the Malaysian Government 250 MW Hulu Terengganu project and
via Thailand, following the signing of a
established the Sarawak Corridor of the 382 MW Ulu Jelai project in the state
memorandum of understanding in 2016.
Renewable Energy (SCORE) programme, of Pahang, coming online in 2015 and
It’s expected to take place by 2018 and it
designed to take advantage of the 2016 respectively. There is a further
could be increased further in the future.
state’s vast natural resources and to 1,700 MW of hydropower projects either
diversify its economy by providing at a planning or feasibility stage in
reliable, low-cost electricity to its Peninsular Malaysia.
growing manufacturing base. SCORE is
Small-scale hydropower projects, which
looking to capitalise on the 51 potential
Malaysian regulations classify as
hydropower sites that the government
run-of-river schemes up to 30 MW in
has identified which could provide an
installed capacity, are also contributing
estimated 20 GW of capacity.
to the country’s electricity supply,
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WORLD TOTAL
Region Total installed Pumped Generation
capacity including storage (MW) (TWh)
pumped storage (MW)