Small Hydropower Offers More Acceptable Alternatives
A continued global effort to reduce the carbon intensity of the electricity generation industry has led to widespread adoption of renewable energy policies internationally, over the past decade. Policies that have actively encouraged the growth of the hydropower market include feed-in-tariffs, reduced tax on hydro-construction and imports, subsidies, favourable power purchase agreements (PPAs), and the reduction of electricity export/import tariffs. Hydropower is the leading renewable source for electricity generation worldwide, supplying 71% of all the renewable electricity. The global hydropower installed capacity reached 1,308 gigawatts (GW) in 2019. Clean electricity generation from hydropower achieved a record 4,306 terawatt hours (TWh), the single greatest contribution from a renewable energy source in 2019.
The global hydropower market is witnessing a major shift towards small and run-of-river hydropower projects (i.e., under 25 MW capacity) that have been two of the more significant changes in the hydropower industry over the past two decades. The small hydropower (SHP) offers alternatives that do not require large areas of land to be flooded or for the flow of the river to be entirely disrupted, making them more palatable to the public and the political system. Currently, SHP represents only approximately 1.5% of the world’s total electricity installed capacity, 4.5% of the total renewable energy capacity, and 7.5% (for < 10 MW) of the total hydropower capacity.
Government Support Towards Harnessings Renewable Electricity to Fuel Adoption of SHP
The market for hydropower projects has gone through a phase of unprecedented growth, driven by growing demand for electricity in emerging economies and a vast quantity of undeveloped hydropower potential. Deployment of small-scale hydropower facilities is driven by a bold and ambitious green recovery plan involving significant investments into renewable technologies. Lower investment costs compared to large-scale hydropower remains the key driver for setting up small hydropower facilities in small rivers, streams or in the existing water supply networks such as drinking water, or wastewater networks.
Based on current renewable energy policies formed across nations, the share of renewable energy is expected to reach 20-22% of the global energy mix by 2030. Small hydropower is expected to play a key role in maximizing renewable energy-based power generation. The COVID-19 pandemic has emphasized the hydropower sector’s flexibility and its critical role in delivering clean, reliable, and affordable energy, especially during crises. Despite the appeal and benefits of SHP solutions, much of the world’s SHP potential remains untapped (approximately 65%). Several favourable policy frameworks and process optimisation strategies are in effect to promote SHP financing; however, a lot more still needs to be done to allow the available potential to be fully exploited.
Off-grid SHP to Grow at a Rapid Pace
Small hydropower plant has comparatively low power delivering limits. These are generally appropriate for individual requirements and are mostly off-grid based. Globally, the off-grid SHP solutions have surfaced as a core option to expand access to renewable energy in a timely and environmentally sustainable manner in remote areas not connected to central grid network.
The electricity demands of rural areas urgently need to be met so that the key development needs such as reliable lighting, better information and communication means, improved security, higher productivity, and more advanced product processing can be realised. In far off remote areas, with a low thickness of energy interest, SHP is particularly reasonable in light of the fact that it tends to be sent in different sizes of plans that are adjusted and appropriate to the specific local necessities and community needs.
Asia Pacific to Lead in Terms of Yearly Installed Capacity
Asia Pacific dominated the global small hydropower market in 2020. Globally, the top five countries – China, the US, Japan, Italy, Norway, and Turkey collectively account for more than 65% of the world’s total SHP installed capacity. China continues to dominate the global SHP landscape. In 2019, India overtook Japan as the fifth largest hydropower producer with its installed capacity now standing at over 50 GW. The Asian region continues to have the largest installed capacity for small hydropower projects. Europe has the highest percentage of SHP development, with Western Europe having 85% of its potential already developed. In the Americas, most of the SHP is concentrated in the Northern America, and South American region. In 2019, the Americas reached an SHP development rate of 15%. In the Middle East & Africa, by contrast with its large untapped hydropower potential, Africa has the smallest installed capacity at 37 GW. In Africa, small hydropower can be characterized as having a relatively low level of installed capacity but with a considerable potential for development.
Global Small Hydropower Market: Competitive Landscape
Some of the key players in the small hydropower market include Voith GmbH & Co. KGaA, Velcan Energy, Marubeni Corporation, GE, Siemens AG, ANDRITZ, Toshiba Corporation, Gilbert Gilkes & Gordon Ltd, BHEL, and Natel Energy. In January 2021, Voith GmbH & Co. KGaA won a contract for 8.6MW Vallabrègues small hydro plant, France. The project is expected to get operational in the next four years, with connection to the power grid scheduled by 2024.
Regional Classification of the Global Small Hydropower (SHP) Market is Listed Below:
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Small Hydropower (SHP) Market
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1. Executive Summary
1.1. Global Small Hydropower Market Snapshot
1.2. Key Market Trends
1.3. Future Projections
1.4. Analyst Recommendations
2. Market Overview
2.1. Market Definitions and Segmentations
2.2. Market Dynamics
2.2.1. Drivers
2.2.1.1. Driver A
2.2.1.2. Driver B
2.2.1.3. Driver C
2.2.2. Restraints
2.2.2.1. Restraint 1
2.2.2.2. Restraint 2
2.2.3. Market Opportunities Matrix
2.3. Value Chain Analysis
2.4. Porter’s Five Forces Analysis
2.5. Covid-19 Impact Analysis
2.5.1. Pre-covid and Post-covid Scenario
2.5.2. Supply Impact
2.5.3. Demand Impact
2.6. Government Regulations
2.7. Technology Landscape
2.8. Economic Analysis
2.9. PESTLE
3. Cumulative Installed Capacity Trade Statistics, 2018 - 2022
3.1. Regional Statistics
3.1.1. North America
3.1.2. Europe
3.1.3. Asia Pacific
3.1.4. Latin America
3.1.5. Middle East & Africa
4. Price Trends Analysis and Future Projects, 2018 - 2030
4.1. Key Highlights
4.2. Prominent Factors Affecting Prices
5. Global Small Hydropower Market Outlook, 2018 - 2030
5.1. Global Small Hydropower Market Outlook, by Installed Capacity, Volume (MW) and Value (US$ Mn), 2018 - 2030
5.1.1. Key Highlights
5.1.1.1. Below 1 MW
5.1.1.2. 1-10 MW
5.2. Global Small Hydropower Market Outlook, by Region, Volume (MW) and Value (US$ Mn), 2018 - 2030
5.2.1. Key Highlights
5.2.1.1. North America
5.2.1.2. Europe
5.2.1.3. Asia Pacific
5.2.1.4. Latin America
5.2.1.5. Middle East & Africa
5.2.2. BPS Analysis/Market Attractiveness Analysis
6. North America Small Hydropower Market Outlook, 2018 - 2030
6.1. North America Small Hydropower Market Outlook, by Installed Capacity, Volume (MW) and Value (US$ Mn), 2018 - 2030
6.1.1. Key Highlights
6.1.1.1. Below 1 MW
6.1.1.2. 1-10 MW
6.2. North America Small Hydropower Market Outlook, by Country, Volume (MW) and Value (US$ Mn), 2018 - 2030
6.2.1. Key Highlights
6.2.1.1. U.S.
6.2.1.2. Canada
6.2.2. BPS Analysis/Market Attractiveness Analysis
7. Europe Small Hydropower Market Outlook, 2018 - 2030
7.1. Europe Small Hydropower Market Outlook, by Installed Capacity, Volume (MW) and Value (US$ Mn), 2018 - 2030
7.1.1. Key Highlights
7.1.1.1. Below 1 MW
7.1.1.2. 1-10 MW
7.2. Europe Small Hydropower Market Outlook, by Country, Volume (MW) and Value (US$ Mn), 2018 - 2030
7.2.1. Key Highlights
7.2.1.1. Germany
7.2.1.2. France
7.2.1.3. U.K.
7.2.1.4. Italy
7.2.1.5. Spain
7.2.1.6. Russia
7.2.1.7. Rest of Europe
7.2.2. BPS Analysis/Market Attractiveness Analysis
8. Asia Pacific Small Hydropower Market Outlook, 2018 - 2030
8.1. Asia Pacific Small Hydropower Market Outlook, by Installed Capacity, Volume (MW) and Value (US$ Mn), 2018 - 2030
8.1.1. Key Highlights
8.1.1.1. Below 1 MW
8.1.1.2. 1-10 MW
8.2. Asia Pacific Small Hydropower Market Outlook, by Country, Volume (MW) and Value (US$ Mn), 2018 - 2030
8.2.1. Key Highlights
8.2.1.1. China
8.2.1.2. Japan
8.2.1.3. South Korea
8.2.1.4. India
8.2.1.5. Southeast Asia
8.2.1.6. Rest of Asia Pacific
8.2.2. BPS Analysis/Market Attractiveness Analysis
9. Latin America Small Hydropower Market Outlook, 2018 - 2030
9.1. Latin America Small Hydropower Market Outlook, by Installed Capacity, Volume (MW) and Value (US$ Mn), 2018 - 2030
9.1.1. Key Highlights
9.1.1.1. Below 1 MW
9.1.1.2. 1-10 MW
9.2. Latin America Small Hydropower Market Outlook, by Country, Volume (MW) and Value (US$ Mn), 2018 - 2030
9.2.1. Key Highlights
9.2.1.1. Brazil
9.2.1.2. Mexico
9.2.1.3. Rest of Latin America
9.2.2. BPS Analysis/Market Attractiveness Analysis
10. Middle East & Africa Small Hydropower Market Outlook, 2018 - 2030
10.1. Middle East & Africa Small Hydropower Market Outlook, by Installed Capacity, Volume (MW) and Value (US$ Mn), 2018 - 2030
10.1.1. Key Highlights
10.1.1.1. Below 1 MW
10.1.1.2. 1-10 MW
10.2. Middle East & Africa Small Hydropower Market Outlook, by Country, Volume (MW) and Value (US$ Mn), 2018 - 2030
10.2.1. Key Highlights
10.2.1.1. South Africa
10.2.1.2. Morocco
10.2.1.3. Rest of Middle East & Africa
10.2.2. BPS Analysis/Market Attractiveness Analysis
11. Competitive Landscape
11.1. Company Market Share Analysis, 2022
11.2. Competitive Dashboard
11.3. Company Profiles
11.3.1. Siemens AG
11.3.1.1. Company Overview
11.3.1.2. Product Portfolio
11.3.1.3. Financial Overview
11.3.1.4. Business Strategies and Development
(*Note: Above details would be available for below list of companies based on availability)
11.3.2. Innergex
11.3.3. Blue World Power Energy
11.3.4. Gravity Renewables
11.3.5. Pernix Group Inc.
11.3.6. Dulas Ltd.
11.3.7. Velcan Energy
11.3.8. SN Aboitiz Power Inc.
11.3.9. Voith Group
11.3.10. Mavel A.S.
11.3.11. RusHydro
11.3.12. Marubeni Corporation
11.3.13. PNOC Renewables Corporation
11.3.14. Statkraft
11.3.15. Him Urja Private Limited
11.3.16. Vindhyachal Hydro Power Pvt. Ltd.
12. Appendix
12.1. Research Methodology
12.2. Report Assumptions
12.3. Acronyms and Abbreviations
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