Power
Significant Investment Flows Toward Small Hydro Power Stations
Industrial Info is tracking 249 active small hydropower projects, worth US$5.39 billion
Released Friday, December 29, 2023
Researched by Industrial Info Resources (Sugar Land, Texas)--Hydropower has long been the backbone of the renewables sector and currently generates 15% of global electricity. While large-scale hydropower continues to help developed and developing nations advance toward the energy transition, the emergence of small hydropower plants is fast-tracking this ambitious journey toward a carbon-free world.
Small hydropower (SHP) is a simple, flexible and cost-effective technology with a capacity between 0.1 to 30 megawatts (MW), in contrast to larger hydropower plants with a capacity of up to hundreds of megawatts. SHPs are especially suitable for off-grid or remote areas where establishing larger hydropower systems is challenging. In such regions, SHPs can help marginalized communities achieve better electricity access as well as reduce their dependence on fossil fuels.
Another characteristic of SHP is its high adaptability, allowing it to work with rivers and streams without requiring large dams or reservoirs. As a result, small hydropower has a lower environmental impact and causes minimal intervention to local human habitats. Moreover, its cost-effectiveness makes it easier for investors and governments to support or fund these small hydropower projects.
Industrial Info is tracking 249 active SHP projects, worth US$5.39 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of detailed project reports.
South America leads with potential investments worth US$4.48 billion, while investment from Asia and Middle America sits at US$905 million and US$1.5 million, respectively.
By country, Brazil holds around 82% of the total investment, and the rest of the investment is in China and Malaysia.
Water Resources Agency MOEA (Hualin, China), Participa Empreendimentos Imobiliarios e Participacoes Ltda (Goias, Brazil), and MSul Energia e Participacoes Limitada (Santa Catarina, Brazil) are the top companies that are driving a significant amount of potential investment toward small hydropower projects.
Approximately 74% of the investments are in the planning phase, while the rest are in the engineering and construction phases and are expected to reach completion by 2030.
Small hydropower stations promise a cleaner and greener future, but the deployment is not without challenges. Although small hydropower stations are cheaper than larger hydropower plants, the initial cost of developing SHP is still high. This slows the deployment of small hydropower projects unless economies of scale are met. However, advanced technology, proper policies and regulations, and access to sustainable financing for project developers can help mitigate these challenges and further help realize the untapped potential well before the deadline for achieving net-zero carbon approaches.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
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