Power Trends: European Hydropower Projects Top 35 Billion Euros

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European hydropower market may not be growing as quickly as other renewable energy sectors, but it is still the most important source of renewable energy in the region. Today, Industrial Info (IIR) reports that there are 198 European hydropower projects under development with a combined investment value of 35.1 billion euros ($45.7 billion). For 2012 alone, 68 projects worth an estimated 9.5 billion euros ($13.5 billion) are expected to begin.

Detailed information on the hydropower sector and the global power generation market can be found in Industrial Info's Power Generation Database.

For some countries, hydropower is the most important energy source. Almost 90% of Norway's electricity comes from hydropower, while together, Sweden, France and Italy generate half of all Europe's hydropower. IIR is currently tracking 913 installed hydropower plants that generate more than 142 gigawatts (GW) of electricity.

In terms of active projects and investments, the leading countries are:

• Switzerland: 30 projects worth 5.08 billion euros ($7.2 billion)
• Austria: 25 projects worth 5 billion euros ($7.1 billion)
• Norway: 22 projects worth 1.55 billion euros ($2.2 billion)
• Portugal: 15 projects worth 3.95 billion euros ($5.6 billion)

Unlike many new sources of renewable energy, such as wind and solar, most hydropower facilities have been in place for decades; as a result, new-build activity is less active. However, there is intense activity in the maintenance, refurbishment and upgrading sectors. From servicing or replacing older turbines and units with more modern alternatives to adding more turbines to an existing facility, the hydropower market is a vibrant market. And, as European countries increasingly shift toward renewable energy from intermittent sources like wind, hydropower stations are being used as a backup system for when they don't generate enough power.

Looking at new builds, IIR is tracking 94 projects under construction with a combined capacity of 7.4 GW. There are another 23 projects with 2.3 GW of capacity in the advanced stages of development, while 280 projects with a massive 27 GW of combined capacity are in the planning process.

This month, the Spanish arm of German energy giant E.ON AG (OTC:EONGY) (Düsseldorf, Germany) plans to invest $800 million to expand the Aguayo hydropower plant in Santander, in the Cantabria province of Spain. The project will see the addition of another 1,000 MW of power, through the addition of four 250-MW Francis reversible pumped-storage turbines. This will bring the facility's capacity to 1,360 MW. For related news, see March 21, 2011, article - E.ON to Invest $800 Million in Spanish Hydropower Expansion.

In the meantime, Norwegian energy firm Statkraft AS (Oslo), is expected to invest 250 million euros ($340 million) to build a second hydropower plant in Turkey. The new plant at Kargi, northeast of the Turkish capital of Ankara, will use part of Turkey's longest river, the Kizilirmak, and will have a generating capacity of 102 MW. It will be capable of powering 150,000 homes. For related news, see November 19, 2010 article - Statkraft to Build Second Hydropower Plant in Turkey.

IIR's Renewable Energy Database provides extensive coverage on the wind energy, geothermal, hydroelectric, landfill gas-to-energy and utility-scale solar power plants throughout North America, and is now expanding coverage across the world.

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