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2018

hydropower
status report
sector trends and insights
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Acknowledgements
Contributing Ministers: Colin Clark, IHA Vice President Ziping Huang - Powerchina
Yab Datuk Patinggi Dr Abang Haji - Brookfield Renewable International Group
Abdul Rahman Zohari Bin Tun Datuk Roger Gill, IHA Vice President Lasantha Jayasinghe - Engineer
Abang Haji Openg, Chief Minister - - Pacific Hydro
Sarawak, Malaysia Ren Jinghuai - CSHE
Gil Maranhao Neto, IHA Vice
Eva Kremere - PhD student
H.E. Hon Seleshi Bekele, President - Engie
Minister of Water, Irrigation Ravi Kalra - Voith
Christine Cantin, IHA Board
and Electricity - Ethiopia
Member - Hydro Québec Jeff Leahey - National
Hon Josh Frydenberg MP, Minister for Hydropower Association
Tammy Chu, IHA Board
the Environment and Energy - Australia Member - Entura Chen Liang - IWHR
Paul Wheelhouse MSP, Minister for Tron Engebrethsen, IHA Board Carlos Lima - Brasilia University
Business, Innovation and Energy - Member - Statkraft
Scotland, United Kingdom Paulo Maranhão - Itaipu Binacional
Segomoco Scheppers, IHA Board
Member - Eskom Mike McWilliams - Independent
Consultant
Editorial: Óli Sveinsson, IHA Board
Researched, written and edited Member - Landsvirkjun Abudakar Halilu Muazu - Upper Benue
by the team at IHA Central Office: River Basin Development Authority
Rashid Abdalla - African
Union Commission Linus Mofor - UNECA
Chief Executive:
Richard Taylor Siraj Abdullahi - Mainstream Hugo Nunes - Neoenergia
Energy Solutions Luis Fernando Otero Lopez
Analysts (in alphabetical order): Angela Africano - GE Renewables - Global Hydro Energy
Cristina Diez Santos Ing. Edwin Quintanilla - Osinergmin
Bill Girling Dafe C. Akpeneye - Nigerian
Mathis Rogner Electricity Regulatory Commission Abdellah Saphar - ONEE
David Samuel Isaac Arinaitwe - UEGCL Jurgen Schuol - Voith
Nicholas Troja
María Ubierna Slamu Audu - Mainstream Samhita Das Sharma - GE Renewables
Energy Solutions
Jamie Skinner - International Institute
Sustainability: Bernard Barandereka - African for Environment and Development
Joao Costa Union Commission
Wolfgang Semper - Andritz Hydro
Frank Faraday Song Dan - China Three
Gorges Corporation Marie-Theres Thoeni
Communications: - Oesterreichs Energie
Will Henley Adolfo Fehrmann - Isagen
Alexandre Uhlig - Instituto Acende
Louis Scorza William Greene - Multiconsult
Santiago Villegas - EPM
Reviewers: Simon Hamlyn - British
Hydropower Association Lesha Witmer - Women for
Ken Adams, President - IHA Water Partnership
Ing. Luis Guillermo Horn Díaz
Antoine Badinier, IHA Vice - Eletroperu Igor Zhezhel - RusHydro
President - EDF
Liu Huailiang - China Gezhouba
Group International Engineering
| 01
CONTENTS
Acknowledgements 01

Foreword by Ken Adams, President, and Richard Taylor, CEO, IHA 04


Infographic: Hydropower key facts 06
Executive Summary
Key trends and developments 08

Surveying the hydropower sector 10

Regional trends in brief 12

Policy Perspectives

Australia: Minister for the Environment and Energy 14

Ethiopia: Minister of Water, Irrigation and Electricity 16

Sarawak, Malaysia: Chief Minister of Sarawak 18

Scotland, UK: Minister for Business, Innovation and Energy 20

Issues in Focus

Sustainability 26

Climate mitigation 28

Green bonds 30

Regional interconnections 32

Climate resilience 34

Operations and maintenance 36

02 | International Hydropower Association | Hydropower Status Report 2018


Itaipu Binacional, Brazil and Paraguay.
Credit: Alexandre Marchetti

Regions in Focus
Report methodology
Map of new hydropower capacity added in 2017 42
Statistics for the Hydropower
Map of hydropower capacity and generation by region 44 Status Report are compiled by
IHA using data from published
North and Central America 47
sources, IHA members, government
South America 55 representatives, industry sources
and media monitoring.
Africa 63
IHA’s database lists approximately
Europe 71 12,000 stations in 150 countries.
For hydropower generation,
South and Central Asia 79 statistics are a combination of
official government reports and
East Asia and Pacific 87 IHA estimates based on averaged
capacity factors.
About IHA 96
The data is tracked, stored
Tables - Worldwide capacity and generation in 2017 98 and updated to account for
new information as it is received.
Data verification exercises are
an ongoing process, leading to
corrections as and when required.

| 03
Foreword

The 2018 Hydropower Status Report, now in its fifth edition,


is the IHA’s flagship publication on hydropower statistics
and an authoritative guide to the future of the sector.

We publish the 2018 Hydropower esteemed policy-makers underline Sustainability Assessment Protocol
Status Report at a time of significant hydropower’s role in achieving carbon covering climate change mitigation
change in global energy markets, reduction targets, as articulated and resilience, as well as a new tool
with the contribution of renewables in the Paris Climate Agreement, for undertaking targeted, cost-
such as hydropower, wind and solar as well as broader social, economic effective assessments of projects.
growing at a rapid rate. and environmental aspirations This represents an important
encapsulated in the Sustainable development in the toolbox available
During 2017, an additional 21.9 GW
Development Goals. for reviewing, understanding and
of installed hydropower capacity was
communicating the social, economic,
added worldwide, with China once The report also offers insights on
environmental and technical
again making up for the largest share many of the factors influencing the
performance of hydropower.
of newly commissioned projects. growth and development of the
Total installed capacity worldwide hydropower sector, regionally and In addition, during 2018 we expect
has now reached 1,267 GW, globally, from the need to build to see the completion of new
producing an estimated 4,185 TWh climate-resilient facilities, to new green bond eligibility criteria for
in clean electricity – two-thirds of all technologies being adopted and hydropower, which will provide
renewable electricity generation. creative solutions for operations much needed clarity for this
and maintenance. important financial market. Projects
While the capacity added last year
which can demonstrate they follow
was lower than the 31.5 GW recorded For years, researchers have struggled
good international industry practice
the previous year, importantly, to accurately assess the carbon
should become eligible as a result
USD 48 billion of final investment footprint of hydropower. Within
of this work.
decisions were committed to this report, we are publishing the
hydropower projects in 2017 – nearly results of the largest and most Hydropower development is integral
double the amount recorded in 2016. comprehensive study of the to the growth strategies of many
This indicates that there is a strong greenhouse emissions of nearly fast growing economies around the
pipeline of projects in development. 500 reservoirs globally. The results world. Heralding its low running
indicate that hydropower is among costs and long lifetime, the Chief
In this report, we are honoured to
the cleanest sources of electricity Minister of Sarawak, Malaysia, writes
share contributions from four leading
generation in the world. in this report that “hydropower
government ministers, each of whom
development makes for good
has a major role to play in shaping If hydropower was replaced with
business sense” as a way of securing
energy policy, both within their burning coal, analysis by IHA
a stable supply of sustainable energy.
countries and across their respective suggests that 4 billion tonnes of
regions. In their articles, these additional greenhouse gases would In Ethiopia, which has initiated a
have been emitted in 2017, and Climate Resilient Green Economy
global emissions from fossil fuels strategy, increasing energy access
and industry would have been 10 through hydropower is seen as a

1,267GW per cent higher. In addition, using


hydropower instead of coal last year
avoided the generation of 148 million
“vital catalyst to wider social and
economic development, enabling
education, health and sustainable
global hydropower installed tonnes of air polluting particulates, agriculture as well as creating jobs”,
capacity in 2017
62 million tonnes of sulphur dioxide, according to the country’s Minister
and 8 million tonnes of nitrogen for Water, Irrigation and Electricity.
oxide – avoiding many more health It also serves as an “entry point”
and environment impacts. for regional collaboration and

4,185TWh
integration, he says in his article.
This year, 2018, is shaping up
to be a milestone year for the Many mature markets, as well as
hydropower sector. Firstly, IHA developing countries, are turning
estimated electricity generated and partners are preparing to to hydropower thanks to its storage
from hydropower in 2017
launch an expanded Hydropower capabilities, as well as its vital water

04 | International Hydropower Association | Hydropower Status Report 2018


FOREWORD
management services. Hydro is and an opportunity to influence vital
now a “priority agenda item” for discussions and decisions. Highly
Australia, writes the Minister for the experienced professionals can also
Environment and Energy, highlighting apply to be recognised as a Fellow
a “game-changing” project announced of IHA, and join a global network of
in 2017: Snowy 2.0, which will expand hydropower leaders.
the iconic Snowy Mountains Scheme
We wish to extend our gratitude to all
by an additional 2,000 MW of capacity
those members and other reviewers
with 350,000 MWh of storage.
who contributed to the production
The policy emphasis given to storage, of this year’s Hydropower Status
and especially pumped storage, Report, as well as the analysts and
is shared by Scotland’s Minister for staff team of IHA Central Office who
Business, Innovation and Energy, have worked tirelessly to bring it to
who believes that investment in publication. As always, we welcome Itaipu Binacional
Image credit: Alexandre Marchetti
new capacity could “greatly enhance your observations and comments,
the flexibility and resilience” of his as we look to expand and further
country’s electricity network. develop this report in future years.
We launch the 2018 Hydropower
Status Report almost exactly one
year ahead of the World Hydropower
Congress in Paris. This important
event will bring together leading
policy-makers, experts and innovators
from across the hydropower sector, Ken Adams
including representatives from President
business, civil society, government
and academia to debate, and shape,
the future of hydropower.
Membership of IHA – and attendance
of the World Hydropower Congress –
is open to all individuals interested in
advancing sustainable hydropower.
If you are not already a member,
please consider applying. It will give Richard Taylor
you access to exclusive resources Chief Executive

| 05
Hydropower key facts
Source: IHA 2018

4,185 TWh
Worldwide
1,267 hydropower
installed
GW capacity in 2017 Clean electricity generated by hydropower in 2017

New capacity THAT’S ENOUGH ELECTRICITY FOR


21.9 added (GW) ONE BILLION PEOPLE
3.2 including pumped
storage (GW)

Source: IHA 2018

HYDROPOWER BENEFITS CLIMATE ACTION Source: IPCC


COAL

GAS

BIOMASS

SOLAR

HYDRO

WIND
GEOTHERMAL
Clean, affordable and
reliable energy

Enabling solar, wind


and other renewables

Responsibly Hydropower is second only to wind among renewables in


managed freshwater offering the lowest carbon emissions per kilowatt hour

4
Protecting from
floods and drought If hydropower
was replaced with
BILLION
Boost to economic
burning coal, TONNES
approximately of additional greenhouse gases
growth and jobs
would have been emitted in 2017

Avoiding pollutants
and emissions and global
emmisions from
10%
fossil fuels and
HIGHER
Improved infrastructure
and waterways industry would
have been at least

Enhancing cooperation
between countries AVOIDING POLLUTION Source: IHA

Community investments Using hydropower instead


in rural areas of coal each year avoids:
PM2.5
Recreational activities
PM10 148 million tonnes
of particulates
NOx
and tourism
SOx 62 million tonnes
of sulfur dioxide

8 million tonnes
of nitrogen oxide
06 | International Hydropower Association | Hydropower Status Report 2018
WORLDWIDE HYDROPOWER INSTALLED CAPACITY

REST OF THE WORLD 252 CHINA 341

COLOMBIA 12

IRAN 12
MEXICO 12
AUSTRIA 14
VENEZUELA 15
SWEDEN 16
VIETNAM 17
SWITZERLAND 17
SPAIN 20
ITALY 22
FRANCE 26
UNITED
TURKEY 27 STATES 103
NORWAY 32

RUSSIA 48 BRAZIL 100

INDIA 49

JAPAN 50 CANADA 81

Total installed capacity (GW) of top 20 countries including pumped storage in 2017. Source: IHA 2018

SHARE OF GLOBAL ELECTRICITY GENERATION Source: REN21 2017

Hydropower is the world’s largest source of renewable electricity generation.

16.6%
of electricity
RENEWABLE
ELECTRICITY was produced
by hydropower

24.5%
4.0% WIND POWER THAT’S
MORE THAN
75.5% 2.0% BIOPOWER DOUBLE

NON-
1.5% SOLAR PV ALL OTHER
RENEWABLES
RENEWABLE COMBINED.
ELECTRICITY 0.4% OCEAN, CSP AND
GEOTHERMAL POWER

| 07
Executive summary

The world’s largest source of clean electricity


generation, hydropower is an enabler of other
renewable energy sources while providing vital
services to manage water and mitigate climate change.

Key trends and developments The world’s water batteries and Industrial Research and the
Natural Resources Institute of Finland.
IHA can report that electricity Hydropower accounts for more than
Launched in 2017, the tool was devised
generation from hydropower 95 per cent of worldwide energy
to more accurately estimate the net
reached an estimated 4,185 storage capacity. By absorbing
change in emissions attributable
terrawatt hours (TWh) in 2017, surplus electricity and supplying it
to the creation of a reservoir.
the highest ever contribution when needed, hydropower is seen
from a renewable energy source. as an enabler of variable renewable The G-res tool takes into account
energy sources such as wind and the condition pre-impoundment,
A total of 21.9 GW of hydropower solar power. considering naturally occurring
capacity was put into operation last emissions and emissions related
year, including pumped storage, In November 2017, IHA launched
to other human activities over
bringing the world’s total installed the Hydropower Pumped Storage
the lifetime of the reservoir. It also
capacity to 1,267 GW. Tracking Tool, which maps the
provides a method for apportioning
locations and statistics for existing
The East Asia and Pacific region was the net GHG footprint to the various
and planned pumped storage
again fastest growing last year, with freshwater services that a reservoir
projects. Throughout 2017, 3.2 GW
9.8 GW of hydropower capacity provides, such as water supply for
of pumped storage hydropower
added, followed by South America (4.1 irrigation and cities, flood and drought
capacity was added worldwide,
GW), South and Central Asia (3.3 GW), management, navigation, fisheries
bringing global pumped storage
Europe (2.3 GW), Africa (1.9 GW) and and recreation.
capacity to 153 GW.
North and Central America (0.5 GW). The study by IHA estimated the
More than 100 pumped storage
The five countries with the largest GHG footprint of 178 single purpose
hydropower projects totalling some
individual increases were China (9.1 hydropower reservoirs and more
75 GW of new capacity are in the
GW), Brazil (3.4 GW), India (1.9 GW) than 300 multipurpose reservoirs.
pipeline. These projects will increase
and Portugal (1.1 GW) and Angola This data was coupled with project-
existing global storage capacity by 50
(1.0 GW). specific average annual hydropower
per cent to almost 225 GW by 2030.
generation data to obtain the
See the map and the tables on Study shows hydropower’s emissions intensity of each site’s
pages 42-45 for data for each low carbon footprint hydropower operations.
country and region.
A study of the greenhouse gas (GHG) This report found the global median
footprint of 500 reservoirs worldwide, GHG emission intensity of hydropower
Cities powered by hydroelectricity published for the first time in this reservoirs to be 18.5 gCO2-eq/kWh.
Report, indicates that hydropower This is the grams of carbon dioxide
Around the world, 93 cities with is one of the cleanest sources of equivalent per kilowatt-hour of
a combined population of more than electricity generation. electricity generated allocated
80 million report that at least half to hydropower over a life-cycle.
of their electricity generation comes The researchers applied the GHG Three-quarters of the reservoirs
from hydropower, while 31 cities Reservoir (G-res) Tool which was were estimated to have emissions
generate 100 per cent of their developed by IHA and UNESCO with less than 60 gCO2-eq/kWh.
electricity from hydropower researchers from the University of
(Source: CDP). Quebec at Montreal in Canada, the Read more on pages 28-29.
Norwegian Foundation for Scientific
2017 HIGHLIGHTS

4,185 TWh 1,267 GW 153 GW 21.9 GW 3.2 GW


Electricity generated from Global hydropower Global pumped storage Capacity added in 2017, Pumped storage capacity
hydropower in 2017 installed capacity installed capacity including pumped storage added in 2017

08 | International Hydropower Association | Hydropower Status Report 2018


The Reventazón project in Costa Rica was assessed

EXECUTIVE SUMMARY
under the Hydropower Sustainability Assessment
Protocol in 2017. Credit: World Bank / Mario Lacayo

FASTEST GROWING
REGIONS BY NEW INSTALLED
HYDROPOWER CAPACITY IN 2017

China
Criteria to unlock green bonds
as a funding source
More than a decade after the world’s 9.12 GW
Brazil 3.38 GW
first labelled green bond was issued,
the burgeoning green bond market
is heralded as an important source
of investment in hydropower.
A coalition of organisations, including
the United Nations Framework
Convention on Climate Change,
have set a target of USD 1 trillion
India 1.91 GW Portugal 1.05GW
worth of issuances by 2020, up from
USD 160 billion last year.
Angola 1.02 GW Turkey 0.59 GW
More than 100 heads of organisation Iran 0.52 GW Vietnam 0.37 GW Russia 0.36 GW
and senior decision makers in the
hydropower sector say they expect
to finance or refinance a hydropower Water Partnership, the International European Bank for Reconstruction
project through the green bond Institute for Environment and and Development and IHA will
market over the next five years, Development, the Inter-American provide good practice guidance on
according to a survey by IHA. Investment Corporation, climate resilience for project owners,
However, more than three quarters the Norwegian Agency for governments, financial institutions
of respondents say greater clarity on Development Cooperation and and private developers.
the eligibility criteria for hydropower Switzerland’s State Secretariat
Read more on pages 34-35.
is required. for Economic Affairs, and is
supported by IHA as the council’s Regional interconnections to widen
Proposed criteria under development management entity. access to hydropower
by the Climate Bonds Initiative,
due for completion in 2018, should As a complement to the Protocol, to The emergence of regional
give investors the confidence they support more targeted, cost-effective energy networks has created new
require to invest in environmentally project assessments, the council opportunities to widen access to clean
sustainable and socially responsible asked IHA to launch a new tool for electricity generated by hydropower.
hydropower projects. reviewing projects against basic good Central America’s integrated regional
practice across key environmental, electricity grid, SIEPAC, which covers a
Read more on pages 30-31. social and governance criteria. distance of 1,830 kilometres, provides
Expansion in tools for The Hydropower Sustainability a model for other regions seeking to
sustainability assessments Environmental, Social and achieve renewable targets and boost
Governance Gap Analysis Tool (ESG national development.
Since its launch in 2011, the Tool), to be launched in 2018, will be
Hydropower Sustainability compatible with IFC environmental Read more on pages 32-33.
Assessment Protocol has become and social performance standards and Technology to optimise
established as the primary tool the World Bank’s new Environmental hydropower operations
for evaluating sustainability and Social Framework.
performance. To date, the Protocol The revolution in digitalisation
has been applied at more than 40 Read more on pages 26-27. which has swept through sectors
sites around the world. New climate resilience guidelines to encompass algorithmic trading,
being tested artificial intelligence and blockchain
In 2018, the Protocol is to be is becoming increasingly important
expanded by its multi-stakeholder Planning and operating hydropower to hydropower. It is being used to
governance council to include a new assets requires that they will not extend the lifetime of facilities and
climate topic to assess a project’s be compromised by the impacts of support other renewables such and
carbon footprint and resilience to climate change. New hydropower wind and solar.
climate change. The council includes sector guidelines being developed
the World Bank, WWF, Women for and tested by the World Bank, the Read more on pages 36-37.
| 09
Executive summary

Surveying the hydropower sector


The Hydropower Status Survey gauges insights from a broad pool of senior
decision-makers and expert professionals working in the hydropower
sector, both IHA members and non-members, in all regions of the world.

The 2018 Hydropower Status Survey, (10.6 per cent), analyst/adviser (6.8 The changing role of hydropower
conducted between 14 March and per cent) and other (8.1 per cent).
Hydropower facilities which
1 May 2018, invited respondents
More than half of the respondents incorporate storage reservoirs can
to share their views about some
(58.5 per cent) had over 15 years of be used to provide significant flexible
of the most pressing issues facing
hydropower industry experience. balancing and ancillary services for
the sector. It gathered insights
power systems. Reflecting increased
about business confidence in
global demand for these services,
hydropower growth and investments. Organisations surveyed: 91 per cent of survey respondents
Respondents were asked about the
stated that hydropower increasingly
policies and other factors influencing
provides a peaking and support role
hydropower development.
for power systems, over baseload
In addition, questions looked at services, to ensure a reliable
hydropower project preparation and electricity supply.
financing, including green bonds,
As intermittent and variable
and the impact of new technologies,
renewable energy sources like
climate mitigation and sediment
wind and solar continue to grow in
management. The survey also
market share, the survey showed
covered work programmes
a high level of enthusiasm among
priorities for the International
the hydropower sector about
Hydropower Association.
these technologies. Rather than
Demographic profile seeing a threat to the hydropower
business, the survey demonstrates
A total of 236 respondents
that the sector’s decision-makers
participated in the survey, of Developer/owner/operator see renewables working together,
which the large majority were
Consulting/consulting company with 71.2 per cent saying they were
representatives of business. Some
optimistic about their emergence
43.2 per cent worked at developers, Equipment supplier/contractor and only 13.6 per cent disagreeing.
owners or operators. Other
respondents included consultants Financial institution In terms of hydropower’s broader
or those working in a consulting Academic/research institute benefits, the survey showed a near
company (22.9 per cent), equipment consensus view that investment in
suppliers/contractors (14.8 per cent), Government hydropower is essential in achieving
or other organisations, including NGO societal and environmental
governments, NGOs, academic objectives, in particular the United
or research institutes or financial Other Nations Sustainable Development
institutions (19.1 per cent). Goals (SDGs) and the Paris Climate
Agreement, with 96.4 per cent
Most of the respondents were senior
and 92.0 per cent of respondents,

91%
decision makers or influencers in their
respectively, in agreement
organisations, with 40 respondents
or strong agreement.
(17.0 per cent) reporting that they
were the head of their organisation.
Fifty-four respondents (23.0 per of respondents said
cent) were senior executives, while hydropower will increasingly
49 people (20.9 per cent) were provide a peaking and support
programme or project managers. role for power systems over
Other categories included technical baseload services
specialist (13.6 per cent), engineer

010 | International Hydropower Association | Hydropower Status Report 2018


EXECUTIVE SUMMARY
Industry confidence
My organisation will expand its installed
hydropower capacity over the next 3 years

35%
30.6%
30% 27.8%
25%
20% 19.7%
15.0%
15%
10%
6.9%
5%
0%

My organisation will increase total investments


in hydropower over the next 3 years
35%
30.9%
30%
25% 23.6% Extremely confident
20.8%
20%
15.7% Very confident
15%
Somewhat confident
10% 9.0%
Not so confident
5%
0%
Not at all confident

Business confidence potential coupled with positive


economic growth prospects. This is
Survey respondents displayed a
driven by domestic demand and cross- BRIEFING FOR IHA MEMBERS
high level of confidence in their
border power trade, as well as growing
organisation’s growth prospects over The full survey results and
appreciation of the wider benefits that
the coming years across three key analysis will be shared
hydropower provides such as water
indicators, namely: growth in installed exclusively with IHA members.
management services.
capacity, business revenues and total The member briefing will cover,
investments in hydropower. In addition, as the energy mix among other topics:
continues to evolve, there is a need
Some 58.4 per cent of respondents
for more energy storage and flexible
responsible for hydropower projects • Insights into sector confidence
capacity to balance grids which is
said they expected to expand their on future business revenues
providing growth opportunities,
installed capacity in the next three and predictions for the next
notably in mature markets. A further
years, next to just 22.0 who were not 10 years for the fastest and
contributing factor is the requirement
confident. Meanwhile 51.7 per cent slowest growing regions.
to upgrade or modernise an ageing
of relevant respondents said they
fleet of hydropower plants.
expected to increase investments in • Factors influencing hydropower
hydropower, next to 24.7 per cent who development and policies
were not confident. recommended by respondents.
This balance arguably reflects the • Ease of obtaining project
increasing demand for clean, reliable finance and approval for
and affordable electricity, particularly greenfield and modernisation
following the signing of the Paris hydropower projects, and
Climate Agreement and the adoption much more.
of the Sustainable Development Goals
in 2015. Hydropower continues to
be the energy choice for a number of
emerging economies in Africa and Asia
where there is significant untapped

| 011
Executive summary

Regional trends in brief


North and Central America South America Africa
Although growth in hydropower in The hydrological variability caused by Africa has among the largest
North and Central America remains El Niño across South America in 2017 untapped potential for hydropower
modest compared to other regions, may lead to the strengthening of long- development, however new projects
there is increased focus on pumped distance regional interconnections are steadily increasing capacity.
storage projects. across the continent.
1,924 MW was added in 2017,
510 MW of new installed capacity was 4,069 MW was added in 2017, bringing Africa’s total installed
added in 2017, around a quarter of bringing total installed capacity in capacity to 35.3 GW.
which came from pumped storage, to South America to 167.0 GW.
Angola commissioned two power
take total installed capacity to 203.1 GW.
Brazil, despite adding 3.38 GW in generating units for the Laúca
In Canada, major storage projects 2017, has removed several large hydropower station (2,070 MW)
under construction include Keeyask hydropower projects from its 10-year and a second power station at
generating station in Manitoba, Site pipeline in favour of pursuing more Cambambe, raising its installed
C in British Columbia, Muskrat Falls decentralised renewable energy. capacity to 960 MW.
in Newfoundland and Labrador, and
Colombia saw hydropower installed Côte d’Ivoire commissioned the
Romaine-4 in Quebec.
capacity increase to 86 per cent Soubré plant (275 MW), making it
In the United States, 140 MW of of total generation in 2017, far the largest hydropower plant in the
installed capacity was added through exceeding the 70 per cent average country. The government is working
retrofits to existing facilities: 139 MW of generation of the past four years. to double power generation by 2020.
pumped storage capacity was added
In Peru, there are 39 hydropower Sudan completed the Upper Atbara
at the Northfield Mountain Unit in
plants planned that would add 2,900 and Setit dam (320 MW). Besides
Massachusetts and the Ludington
MW to the national energy grid. increasing the country’s installed
facility in Michigan.
capacity, the project will provide
In Argentina, the new government
In the Dominican Republic, work water storage and supply for over
is favouring the development of
is underway at the Hatillo small 300,000 hectares of land.
hydropower projects with the 1,740
hydropower plant (10.7 MW), located
MW complex of dams named after The first unit of the Kariba South
on the Río Yuna, to add a new
Dr. Néstor Carlos Kirchner and Jorge extension project was commissioned
powerhouse together with a new
Cepernic in Patagonia and the in Zimbabwe.
generation unit.
approval of the Portezuela del Viento
Read more on pages 66-67.
Read more on pages 50-51. plant (210 MW) in Mendoza.
Read more on pages 58-59.

FASTEST GROWING REGIONS BY NEW INSTALLED CAPACITY IN 2017

East Asia
and Pacific 9,778 MW
South
America 4,069 MW
South and
Central Asia 3,264 MW
Europe 2,307 MW
Africa 1,924 MW
North and
Central America 506 MW

012 | International Hydropower Association | Hydropower Status Report 2018


EXECUTIVE SUMMARY
Europe South and Central Asia East Asia and Pacific
Hydropower remains the single largest South and Central Asia saw 3,264 MW Once again East Asia and the Pacific
source of renewable electricity across of capacity added in 2017, with over region saw the highest annual
Europe, generating an estimated 600 half of new projects commissioned increase in hydropower installed
TWh of clean electricity in 2017. in India. The region’s total installed capacity in 2017.
capacity now stands at 144.7 GW.
2,307 MW was added in 2017, with 9.8 GW was added last year, bringing
over half of added capacity coming In India, new installs included the 1,200 total installed capacity across the
from pumped storage. A significant MW Teesta III project in the Himalayan region to 468.3 GW.
amount of additional capacity is also north-eastern state of Sikkim.
Over 90 per cent of the capacity added
from upgrades and modernisation, Russia commissioned the Nizhne- in 2017 came from China, which
bringing total capacity to 248.6 GW. Bureyskaya project (320 MW) in the increased its total installed capacity to
Portugal commissioned two pumped far east, while total hydropower 341,190 MW.
storage projects: Foz Tua (270 MW) and generation remained stable.
The Trung Son project (260 MW) in
Frades II (780 MW), the latter of which Iran commissioned the Rudbar Vietnam was fully commissioned and
is one of the largest variable speed Lorestan dam comprising is the first hydropower plant in the
projects in Europe. a 450 MW powerhouse. country to have received funding from
Albania, which relies almost entirely the World Bank.
Construction of the Rogun dam (3,600
on hydropower for its power supply, MW) in Tajikistan and other projects Australia announced plans to expand
brought the Fangu station (74.6 MW) in Kyrgyzstan received support from the Snowy Mountains Scheme
online in 2017. The project, by Turkish Uzbekistan, and progress has also been (4,100 MW). Known as Snowy 2.0,
company Ayen Energy, is the country’s made on CASA 1000 to interconnect the pumped storage project involves
largest privately-owned power project with Pakistan. linking two large dams and would
and fourth largest hydropower station. act as a giant 2 GW battery.
Georgia commissioned the Dariala
Switzerland completed the second (108 MW) and Khelvachauri 1(47 MW) Two units representing 100 MW of
stage of the Hogrin-Leman pumped plants, and has plans to modernise the the Lower Sesan II project (400 MW)
storage project. The 240 MW addition Enguri (1,300 MW) dam amongst other in Cambodia were put into operation.
doubled the project’s total installed investments in hydropower. Once completed, it will be the largest
capacity to 480 MW, making it the hydro project in the country.
country’s second largest pumped Nepal’s total capacity reached almost
storage project. 1,000 MW in 2017, and new projects In Papua New Guinea, the Edevu
under construction include 456 MW project (50 MW) is being constructed,
Read more on pages 74-75. Upper Tamakosi and 900 MW Arun III. with commissioning expected in 2020.
Read more on pages 82-83. Read more on pages 90-91.

| 013
Policy perspectives

View from Australia

The Australian government has put


hydropower back in the spotlight

The Australian government has made hydropower a


priority agenda item, to help deliver a more reliable and
affordable energy system for all Australians, writes Minister
for the Environment and Energy, Hon Josh Frydenberg MP

Since the 1890s, hydropower has of the National Electricity Market the capacity of the iconic Snowy
been a source of energy in Australia, report which found that despite Mountains Scheme by 50 per cent.
primarily in our southernmost state the unprecedented amounts of Dubbed Snowy 2.0, the additional
of Tasmania. It was in 1974, however, renewables being delivered before 2,000 MW of capacity and 350,000
when it took on “iconic” status 2020, “very few megawatts of power MWh of storage represents the
with the completion of the Snowy that can always be dispatched has largest energy storage project in
Mountains Hydro-Electric Scheme, been added to the NEM”. the southern hemisphere and the
our largest ever engineering project. largest renewable energy project
While storage can come in many
in Australia.
Only two per cent of construction forms, including lithium-ion batteries
was visible above ground, yet the and hydrogen fuel cells, pumped Creating up to 5,000 jobs and
scheme included 16 major dams, hydro technology is the most producing enough power for 500,000
seven power stations, a pumping dominant, responsible for 97 per cent homes, it will involve 27 kilometres
station and 225 kilometres of tunnels, of the world’s energy storage. Indeed, of tunnels and a new power station
pipelines and aqueducts. It was an in a recent report on energy storage that will be up to one kilometre
engineering feat of international by Australia’s Council of Learned underground. Ten-and-a-half hours
renown that provided a platform for Academies, it was said pumped of pumping the 650 metres uphill
Australia’s economic development hydro is “the most cost effective for will deliver eight hours of generation
for decades to come. delivering energy reliability”. downhill. Cheap energy in the middle
of night – especially windy nights –
Today, hydropower is our largest A study by the Australian National
will be used to pump uphill and then
contributor to renewable energy. University and supported by the
on a hot Australian afternoon, Snowy
In 2016, it provided 42 per cent of Government’s Australian Renewable
2.0 will provide electricity right when
total renewable electricity supplied Energy Agency identified over 22,000
it is most in demand.
and seven per cent of Australia’s possible off-river pumped hydro
total electricity. energy storage locations nationwide, With the capacity to store enough
but no large-scale facilities have been energy to run for seven consecutive
Australia’s energy system, however,
built in Australia in the last 30 years. days at its maximum output, Snowy
is currently undergoing its biggest
2.0 will be Australia’s biggest battery.
transition in a century. As more In 2017 though, the Australian
intermittent renewables namely wind Government put hydropower back In Tasmania, where hydropower has
and solar penetrate the grid, more in the spotlight. been a source of energy for more
backup supply is needed to boost than 100 years, pumped hydro
Announced by Prime Minister
reliability and prevent price volatility. energy storage offers the island state
Malcolm Turnbull in March 2017
the potential to become the “battery
This point was highlighted by our and now underway is the game-
of the nation”.
Energy Security Board’s recent Health changing project that will expand

014 | International Hydropower Association | Hydropower Status Report 2018


POLICY PERSPECTIVES
The Australian Government is reliability in the National Electricity
exploring whether expanded Market, but also help us meet our
pumped hydro technology in Paris Agreement commitment to
Tasmania, backed by a second reduce emissions by 26 to 28 per cent
Tasmanian interconnector to the by 2030 on 2005 levels at the lowest
mainland, would deliver similar possible cost. Guthega dam on
benefits for our National Electricity Snowy river, Australia
With an energy system undergoing
Market that Snowy 2.0 promises
its biggest transition in a century
to deliver. This includes examining
and no large-scale pumped hydro
pumped hydro projects that can
facilities having been built in the last
deliver an additional 2,500 MW
30 years, energy storage in Australia
of capacity.
has never been more important.
In Queensland, we are supporting
That is why the Australian
the redevelopment of a mine site
Government has made hydropower
which will co-locate a large scale
a priority agenda item, to help deliver
solar farm with a large scale pumped
a more reliable and affordable energy
hydro project and use two former
system for all Australians.
mining pits as the upper and lower
reservoirs. We have also undertaken
a feasibility study into a pumped
hydro facility in South Australia that
would be the first in Australia to
make use of seawater.
Pumped hydro not only provides
Energy storage
in Australia has
energy storage, but also can provide
grid stabilisation services, such as
voltage and frequency control.
This flexibility makes it a particularly
valuable player of the National
never been more
Energy Guarantee – our energy
policy that will not only improve important

| 015
Policy perspectives

View from Ethiopia

Hydropower development in Ethiopia


to attain sustain sustainable growth
Hydropower based development in Ethiopia provides
a gateway to economic transformation through
industrialisation, urbanisation and through the provision
of access to modern energy to rural areas, writes Hon
Seleshi Bekele, Minister of Water, Irrigation and Electricity.

Renewable energy provides one In the past two decades, electric 2030 to the levels of 2010 base (150
of the most effective strategies power development policies and MtCO2e) with 64 per cent equivalent
to simultaneously promote clean activities have played a pivotal role of CO2 reduction. The key to attaining
development, sustainable access in achieving economic growth green and low-carbon development
and energy security with its and prosperity in Ethiopia with the is clean energy development, where
irreplaceable role in climate ultimate goal of facilitating regional hydropower plays the major role.
change mitigation at all levels. economic cooperation and integration Developing hydropower for domestic
through the additional mission consumption and exporting the
Today, more than two-thirds of the
of interconnecting neighbouring excess amount to neighbouring
world’s renewable electricity comes
countries with electricity. countries would mean to take the
from hydropower dams. Investment
leading role to meet the ambition
in hydropower generation very Hydropower is also sensitive to
of the Paris Climate Agreement
often has multiple water resources climate change because of its
of reducing MtCO2e in 2030
development benefits. It has a dependence on river runoff,
in the region.
benefit to provide regulation and a resource which is dependent on
storage structure, enhance capacity a climate-driven hydrological cycle. The role that energy, or Sustainable
to mitigate the adverse impact Run-off depends on meteorological Development Goal (SDG) 7, plays
of climate change resulting in parameters such as precipitation is immense in the overall future
pronounced flood and drought, and temperature. Studies using sustainability of our planet.
play crucial roles in stabilising the global circulation show that, in the Particularly, hydropower plays the
energy mix, easily take peak loads, future, some regions of the world will lion share, especially in developing
and enable access to relatively cheap experience increased runoff while countries due to its proven technical
electricity in many countries of Africa. others will have reduced runoff and technological ease and relatively
as a result of global warming. low cost per MW investment. It also
Hydropower generation can serve as
encompasses other services such
a catalyst and entry point for regional Ethiopia, like many other countries,
freshwater management, climate
collaboration, regional integration is impacted by the effects of climate
mitigation, climate adaptation
and the formation of broader regional change. The government has initiated
services, firm energy, energy storage
markets and industrialisation in the Climate-Resilient Green Economy
and other ancillary services which
trans-boundary rivers. It also provides (CRGE) strategy to protect the country
could contribute to other SDGs
a platform for inter-riparian win-win from the effects of climate change
including water (SDG 6), resilient
cooperation to engage in terms and to build a green economy. The
infrastructure (SDG 9), and climate
of energy and power trade, in the Green Economy Strategy identified
change (SDG 13).
coordination and regulation of water and prioritised more than 60 initiatives
infrastructure, and in the maintenance to achieve development goals while Energy access is increasingly seen
and rehabilitation of ecosystems. limiting greenhouse gas emissions in as a vital catalyst to wider social and

016 | International Hydropower Association | Hydropower Status Report 2018


POLICY PERSPECTIVES
Gibe III dam, Ethiopia.
Credit: Salini Impregilo

economic development, enabling Development of hydropower started Ethiopian policy and strategy
education, health and sustainable in the early 1930s with the first Aba emphasises the diversity of the
agriculture as well as creating jobs. Samuel dam commissioned in 1932 energy mix by developing wind, solar
By 2025 electricity access is expected with an installed capacity of 6.6 MW. and geothermal, etc, to complement
to reach 100 per cent in both rural After that, the country has not made hydropower. On the other hand, it is
and urban areas of Ethiopia. To significant progress in hydropower equally important to guard against
attain this, electrification enables the development up until the last decade the negative impacts of hydropower
provision of affordable electricity to when the construction of dams saw a development and to pay close
poor households who are forced to significant boom. attention to climate resilience, social
use fuel-wood to meet their energy inclusion and environmental services.
Since 2009, the country has
needs, over 85 per cent of which is
commissioned five hydro dams with
used for cooking and heating.
a total capacity of 3,147 MW. The
Because of this, thousands of latest commissioned is the Gibe III
square kilometres of deforestation Dam with an installed capacity of
takes place annually for fuel wood 1,870 MW with the largest roller

Energy access is
collection and charcoal burning, compacted concrete dam technology
which also triggers massive land in the world. Among the dams under
degradation and soil erosion. construction, the Grand Ethiopian
Ethiopia’s hydropower potential
is estimated at up to 45,000
Renaissance Dam (GERD), with an
expected installed capacity of 6,450
MW on completion, will be the
increasingly seen
as a vital catalyst
MW and is the second highest
largest hydropower dam station in
in Africa. Hydropower based
Africa. It is also important to note that
development provides a gateway to
Ethiopia has about 17 identified sites
economic transformation through
industrialisation, urbanisation as well
of hydropower potential sites ranging
from 60 MW to 2,000 MW in the
to wider social
as through the provision of access
and economic
pipeline and expected to be largely
to modern energy to rural areas. The
developed by the private sector
current electricity installed capacity of
as independent power producers.
4,284 MW is 97 per cent renewable of
which effective hydropower installed
capacity is 3,810 MW. Furthermore,
Renewable energy mixes from wind,
solar and geothermal sources are
development
8,864 MW of hydropower expected to be increased significantly
development is under construction. in the coming future in Ethiopia.

| 017
Policy perspectives

View from Sarawak, Malaysia

Hydropower and Sarawak’s journey


in renewable energy development
With Sarawak being unique and blessed with an
abundance of natural resources, it is only logical to
explore and harness renewables from these resources,
writes Chief Minister Yab Datuk Patinggi Dr Abang Haji
Abdul Rahman Zohari Bin Tun Datuk Abang Haji Openg.

Energy is what drives development and With Sarawak being unique and making Sarawak the state with the
underpins economic growth. Global blessed with an abundance of lowest tariffs in Malaysia and one
energy demand is forecasted to grow natural resources, it is only logical to of the lowest in the region, and
by 58 per cent between now and 2040 explore and harness renewables from reducing carbon emission from
and we hear of countries racing to these resources to further boost our supply generation by 72 per cent.
secure energy. Sarawak is no different. generation figures and secure a stable
Other than being a natural resource,
supply of energy in the state.
We are aware that we need to detach hydropower development makes for
from being reliant on non-renewable Our many rivers, plentiful rainfall and good business sense as hydropower
resources if Sarawak is to achieve mountainous terrain have enabled projects do have a high upfront outlay
energy security for sustainable Sarawak to embark and focus on during the construction phase, but
economic growth. hydropower development which at they have very low running costs and
present represents 75 per cent of the can operate for many decades – up
The International Energy Agency
state’s generation mix. Fossil fuel, coal to a hundred years in certain cases,
(IEA) reports that by 2022, global
and alternative renewables like solar making it a viable option that works
renewables electricity generation
and mini-hydro make up the rest of for Sarawak.
is expected to grow by over one-
the mix.
third to over 8 000 terrawatts per Sarawak now has three hydroelectric
hour, equal to the total power Hydropower, being a sustainable power plants under its belt - Batang
consumption of China, India and source has since reaped benefits as Ai, Murum and the recently acquired
Germany combined. As a result, it allowed the State Government to Bakun with another, Baleh, currently
the share of renewables in power develop the state’s development under construction and expected to
generation will reach 30 per cent in strategy - the Sarawak Corridor be completed by 2026.
2022, up from 24 per cent in 2016. of Renewable Energy, or SCORE,
As we continue to be on track in our
attracting energy intensive industries
The report also states that in the efforts in energy security which will
and investors to our shores by offering
next five years, growth in renewable also establish our reputation as the
security of supply at a globally
generation will be twice as large ASEAN (Association of Southeast
competitive price.
as that of gas and coal combined. Asian Nations) Powerhouse, Sarawak
While coal remains the largest source With SCORE, the state’s energy continues to explore on developing
of electricity generation in 2022, demand took a quantum leap as it new energy supply options
renewables halve their gap with triggered a number of downstream through research and adopting
coal, down to 17 per cent in 2022. businesses and opening up the state’s new technologies. Advances
rural areas giving rural towns a boom in technology promote energy
Despite slower capacity growth,
effect. In addition, hydropower also efficiency and has opened up many
hydropower will remain the largest
allowed the State government to new energy supply options making
source of renewable electricity
lower electricity tariffs for domestic, this sector more competitive.
generation in IEA’s forecast, followed
commercial and industrial consumers
by wind, solar PV and bioenergy.

018 | International Hydropower Association | Hydropower Status Report 2018


POLICY PERSPECTIVES

We are aware that we need


to detach from being reliant Murum hydroelectric dam
Credit: Sarawak Energy

on non-renewable resources

| 019
Policy perspectives

View from Scotland

Investment in pumped hydro could


greatly increase network resilience
Investment in new pumped hydropower storage
capacity could greatly enhance the flexibility
and resilience of the electricity network, writes
Paul Wheelhouse MSP, Minister for Business,
Innovation and Energy in the Scottish Government.

Early development of the The 2050 vision for energy in the 1126 metre high Ben Cruachan
hydropower sector in Scotland Scotland was recently outlined in the mountain, on the shores of beautiful
arose from a unique combination Scottish Energy Strategy (published Loch Awe, and Foyers (operated
of landscape, climate, and the drive December 2017). It incorporates a by SSE remotely from their Perth
of a handful of innovative and flourishing competitive, local and renewable operations centre) on the
pioneering engineers, architects and national energy sector, delivering eastern shore of the world famous
politicians. The growth of Scotland’s secure, affordable, clean energy Loch Ness. The sites have generating
aluminium industry with its need for for households, communities and capacity of 8.8GWh (440 MW) and
cheap electricity helped make large businesses alike. The hydro sector, 6.3 GWh (300 MW) respectively,
scale hydropower a reality with the alongside wind, wave and other making a significant contribution
establishment of many schemes such emerging technologies has a key to the UK’s 24 GWh of pumped
as Kinlocheven built in 1907. role to play in its realisation. storage capacity.
An Act of Parliament in 1943 saw Ninety-two per cent of the UK’s Looking to the future, further
the establishment of the North of power from hydro is generated in investment in new pumped storage
Scotland Hydro Electric Board. In Scotland, and the sector continues capacity could greatly enhance the
the years that followed, the Board to retain its importance to the flexibility and resilience of Scotland’s
embarked upon an ambitious growing economy, both in terms electricity network and power
hydropower development of generating investment into the supplies. However these are major
programme, with a view to construction industry, and in creating infrastructure projects and further
delivering power and improving valuable local jobs often in the most work is needed to reduce risks
the lives of people across the remote rural geographical areas. and remove barriers to investment
Highlands and Islands regions. At Of the 9.7 GW of installed renewable to facilitate successfully delivery.
its peak, it generated employment electricity capacity in Scotland in To this end the Scottish Government
opportunities for more than 12,000 2017, 1.65 GW came from hydro. continues to actively engage and
people.More recently by 2016, the work with the UK Government.
Two of the UK’s four pumped
low carbon and renewable energy
storage hydro facilities are located
sector as a whole supported 49,000
in Scotland; Cruachan (operated by
jobs across Scotland, generating
Scottish Power) an amazing feat of
a turnover of £11 billion.
engineering located deep within

020 | International Hydropower Association | Hydropower Status Report 2018


POLICY PERSPECTIVES
Glendoe Hydro Scheme, Scotland, UK.
Credit: Scotavia Images.

New pumped storage capacity


could greatly enhance
flexibility and resilience

| 021
Gain international recognition

Join a global network of leaders


Help steer hydropower’s future

022 | International Hydropower Association | Hydropower Status Report 2018


ABOUT IHA
Recognising your experience

Become
a Fellow
Member
If you are a highly experienced hydropower
professional, you can apply to become a Fellow of the
International Hydropower Association, a new tier of
membership launching in 2018.

Fellow members join a network of hydropower leaders


whose expertise is internationally recognised. As a Fellow,
you will receive special invitations to IHA events and help
to steer the sector’s future development.

Fellow members are entitled to use the letters ‘F.IHA’ in


their professional title. To qualify, you must have at least
five years’ experience in a senior management position
in the hydropower sector or have 10 years’ experience in
a specialist field relating to hydropower. Applicants must
be endorsed by two professional referees.

To learn more, please visit:


hydropower.org/fellow-iha

| 023
024 | International Hydropower Association | Hydropower Status Report 2018
HYDROPOWER ISSUES IN FOCUS
Hydropower
issues in focus

Sustainability 26

Climate mitigation 28

Green bonds 30

Regional interconnections 32

Climate resilience 34

Operations and maintenance 36

| 025
Sustainability

A landmark year
in the development
of assessment tools
New tools to be launched in 2018 will support
targeted, cost-effective assessments of hydropower
projects, enable reporting on climate mitigation and
resilience, and promote the adoption of industry
good practice.

The Hydropower Sustainability for Development Cooperation, and Simplified gap analysis tool for
Assessment Protocol is internationally Switzerland’s State Secretariat for targeted assessments
recognised as the primary tool for Economic Affairs.
The new Hydropower Sustainability
evaluating sustainability performance
Expanded Protocol covers climate Environmental, Social and
in hydropower. Since its launch
mitigation and resilience Governance Gap Analysis Tool (ESG
in 2011, the Protocol has been
Tool) is designed to identify gaps
applied at more than 40 sites in both During 2018, the Protocol is set
against good practice and provides
developed and developing countries. to be expanded to cover a new
an action plan that will help project
climate topic to assess a project’s
It offers a framework for assessing teams to address them within a
carbon footprint and resilience to
a project at different stages of its reasonable timeframe. The tool is
climate change. Climate change
development - from early stage to divided into 12 sections which are
had previously been dealt with
preparation, implementation and compatible with IFC environmental
as a cross-cutting issue but, given
operation - against more than 20 and social performance standards and
the importance attached to both
sustainability topics, including siting the World Bank’s new Environmental
mitigating the effects of greenhouse
and design, finance and safety, as well and Social Framework.
gas emissions and increasing the
as impacts on biodiversity and local
resilience of projects, the Protocol The consultation process to review
communities, among other topics.
Governance Council considered both the expanded Protocol and the
The Protocol is not only applied a dedicated topic necessary. ESG Tool by the multi-stakeholder
during an assessment, it is also council was the largest and most
In addition, the council asked IHA
used as a resource for capacity- significant consultation since the
to develop a more targeted, cost-
building, as an internal reference forum that was assembled to draft
effective tool, based on the Protocol,
guideline and a guide to the original Protocol in the late
which would allow a project to be
hydropower planning decisions 2000s. After formal adoption by the
assessed against basic good practice
in countries around the world. Protocol Governance Committee in
across key environmental, social and
December 2017, both the expanded
IHA acts as the management body for governance criteria. This recognised
Protocol and ESG Tool are set for
the Protocol with a multi-stakeholder increasing demands from developers
launch in 2018. With the Protocol
group of organisations providing and international investors, who have
and the ESG Tool, developers, owners
executive direction and oversight, requested a simplified screening
and operators will have two powerful
as its Protocol Governance Council. mechanism to gauge eligibility for
means of building a clear and
This group includes the World Bank, green financing, such as through
objective picture of their project.
WWF, the Inter-American Investment the green bond market.
Corporation, the Norwegian Agency

026 | International Hydropower Association | Hydropower Status Report 2018


HYDROPOWER ISSUES IN FOCUS
Costa Rica’s Reventazon project
was classed as an example of good
international practice under the
Hydropower Sustainability Assessment
Protocol in 2017. Image Credit: World
Bank - Mario Lacayo

ESG Tool
To be launched in 2018 and
based on the Hydropower
Sustainability Assessment
Protocol, the ESG Tool will
allow a focused, cost-effective
analysis of a project to assess
any gaps against good practice
Next steps: international for capacity building purposes, across key environmental,
industry guidelines and practice observed during social and governance criteria,
numerous protocol assessments including climate change
Although the Protocol provides
over the past decade. mitigation and resilience.
a definition of sustainable
hydropower, and includes some A crucial part of developing While focusing on a more
guidelines, it is presented as guidelines is to provide examples limited range of topics, the
a methodology for assessment of where good practice has been ESG Tool goes beyond a
and scoring, and the guidance successfully applied. For this Protocol assessment insofar
it contains is for completing an reason, IHA intends to combine as it provides a management
assessment. However there is the guidelines with more detailed plan to close identified
no widely recognised document technical handbooks and case gaps, providing any project
providing comprehensive studies, most notably through IHA’s developer with a clear pathway
guidelines on international Better Hydro series, funded by the to reaching good practice.
industry good practice for World Bank.
sustainability in hydropower. Become an accredited assessor
The Better Hydro series, which was
Under the mandate of the Protocol launched at the World Hydropower IHA is training and accrediting
Governance Committee, IHA has Congress in Addis Ababa in May 2017, assessors to complete Protocol
been developing comprehensive is available as an online resource on and ESG Tool assessments.
guidelines covering all the topics the IHA website. It showcases projects Information on eligibility and
of the Protocol. As of May 2018, the that have demonstrated excellence how to apply can be found
draft Good International Industry in specific aspects of sustainable on the IHA website.
Practice Guidelines were completed hydropower development, based Online
and were undergoing expert review. on assessments carried out under
The guidelines will jointly address the Hydropower Sustainability hydropower.org/sustainability
the preparation, implementation and Assessment Protocol. Contact us
operation stages of a project, but will
refer to the stages clearly within each Frank Faraday, Sustainability
topic section. Programme Manager
These guidelines are based on the frank.faraday@hydropower.org
same definitions of basic good
practice, additional guidance Joao Costa, Sustainability
developed by IHA in recent years Specialist
joao.costa@hydropower.org

| 027
Climate mitigation

Study shows hydropower’s


carbon footprint
A new study of the greenhouse gas footprint of almost
500 reservoirs worldwide, which applied the G-res tool
for assessing net emissions, indicates that hydropower
is one of the cleanest energy sources.

The greenhouse gas footprint The challenge of assessing net Development of the G-res tool
of hydropower has long been climate emissions
Against this backdrop, the GHG
questioned in both scientific and
Over the years, a number of Reservoir (G-res) Tool was developed
policy spheres, especially with regard
researchers have measured gross by IHA and UNESCO in cooperation
to emissions caused by the creation
reservoir emissions at sites around with researchers from the University
of a reservoir. There has been a lack
the world, but the results of each of Quebec at Montreal (UQÀM) in
of scientific consensus on how to
study cannot be reliably applied Canada, the Norwegian Foundation
quantify this footprint, and this
to other reservoirs, even in the for Scientific and Industrial Research
uncertainty has proved a significant
same region. The biochemical (SINTEF) and the Natural Resources
obstacle for policy and decision
processes leading to emissions from Institute of Finland (LUKE). This
makers concerning the financing of
a reservoir are highly complex, and research was supported by the
hydropower projects and whether
life-cycle emissions are very specific World Bank and sponsors from
they achieve the designation of
to the siting and design of each the hydropower sector.
being climate-friendly.
hydropower facility.
The tool was devised to enable
The Intergovernmental Panel on
Emissions relating to the construction companies, investors and other
Climate Change (IPCC), in its Fifth
and operation of a dam, due to fossil stakeholders to more accurately
Assessment Report published in
fuel combustion and cement/steel estimate the net change in GHG
2014, noted that only onshore
production, can vary depending on emissions attributable to the creation
and offshore wind and nuclear
its type and size. Once filled, factors of a specific reservoir. It takes into
power have lower median lifecycle
such as a reservoir’s depth and shape, account the state of the land pre-
greenhouse gas emissions than
the amount of sun reaching its floor, impoundment, considering naturally
hydropower. However the panel
and wind speed, affect the different occurring emissions and emissions
cautioned that few studies had
biogeochemical pathways by which related to other human activities over
appraised the net emissions of
CO2 and CH4 are created and released the lifetime of the reservoir. It also
freshwater reservoirs, allowing
to the atmosphere. provides a method for apportioning
for pre-existing natural sources
the net GHG footprint to the various
and sinks and unrelated human The process of taking measurements
freshwater services that a reservoir
emission sources. to determine the greenhouse gas
provides, such as water supply
(GHG) footprint of a hydropower
for irrigation and cities, flood and
facility or reservoir can be
drought management, navigation,
cumbersome or prohibitively
fisheries and recreation.
expensive. Calculating the net
change in emissions caused by The G-res tool was formally
a reservoir is highly challenging. launched, after more than a decade
of development work, at the World
Hydropower Congress in Addis
Ababa, Ethiopia, in May 2017.
028 | International Hydropower Association | Hydropower Status Report 2018
HYDROPOWER ISSUES IN FOCUS
1000

100

power density (W/m2)


10

Coal 820
Gas 490
1
Solar PV (Utility) 48
Hydropower* 18.5
Wind Offshore 12 0

Nuclear 12
Wind Onshore 11
0
0 1 10 100 1000 10000
allocated GHG emissions intensity (gCO2/kWh)

Boreal Temperate Subtropical Tropical 100 gCO2/kWh

Figure 1: Median life-cycle carbon Figure 2: Relationship between GHG emissions intensity
equivalent intensity (gCO2-eq/kWh) (gCO2-eq/kWh) and the power density of projects (W/m2)
Source: IPCC 2014 / IHA 2018 *IHA STUDY

Worldwide study Temperature is one of the variables translate to high emissions intensity,
of hydropower reservoirs that has, in theory, a significant effect as many projects with low power
on reservoir emissions. However densities have emissions intensities
During 2017, researchers from IHA
mean annual temperature is only one well below 100 gCO2-eq/kWh
undertook a study of 498 reservoirs
of many variables that influence GHG (left of the red line).
worldwide using the G-res tool. The
emissions. The G-res tool includes
study looked at reservoirs in boreal, It bears noting that the emissions
other input variables such as the
temperate, subtropical and tropical intensity identified from this
soil carbon content of the reservoir,
climates more than 50 countries in study applies only to hydropower
depth of the thermocline, reservoir
North and Central America, South projects with large reservoirs; many
drawdown area and the catchment
America, Europe, Africa, South and hydropower projects, often run-of-
annual run-off. The second figure
Central Asia, East Asia and the Pacific. river, do not flood significant areas
above shows the emissions intensity
of land and consequently will have
The study used the G-res tool to attributable to hydropower reservoirs
even lower emissions. It should also
estimate the GHG footprint of 178 categorised by their respective
be noted that hydropower facilities
single purpose hydropower reservoirs climate zones.
equipped with reservoir storage
and 320 multipurpose reservoirs,
The IHA study, which is to be provide many other valuable power
excluding emissions caused by
submitted for peer review, confirms and water benefits. By storing water
construction activity. This data was
in part that the vast majority of in a reservoir, a project can offer
coupled with project-specific installed
hydropower reservoirs are producing balancing and ancillary services,
hydropower capacity and average
very low-carbon power, some delivering dispatachable power when
annual generation data to obtain
reservoirs in every climate category needed. A reservoir also provides water
the emissions intensity of each site’s
can potentially have high emissions for vital non-power uses such as flood
hydropower operations.
exceeding 100 gCO2-eq/kWh (defined control and drought management,
The global median GHG emission by the Climate Bonds Initiative to be an and water supply for municipalities
intensity of the hydropower reservoirs important threshold). and agriculture.
included in the study was
Figure 2 shows the relationship
18.5 gCO2-eq/kWh; this is the grams of
between the GHG emissions intensity Contact us
carbon dioxide equivalent per kilowatt-
(gCO2-eq/kWh) plotted against the
hour of electricity generated allocated Mathis Rogner, Senior Analyst, IHA
power density of the projects (W/m2).
to hydropower over a life-cycle. The mathis.rogner@hydropower.org
High emissions intensities are possible
majority, or 84 per cent of reservoirs,
from hydropower reservoirs, even on
exhibited emissions less than 100
the same order of magnitude as fossil
gCO2-eq/kWh. For a comparison with
fuel generators, but only at extremely
the median values of other electricity
low power densities. Low power
sources, see figure above.
density however does not necessarily

| 029
Green bonds

New criteria to unlock the


market to hydropower
New hydropower sector-specific criteria for green bond issuers and
investors should open up the burgeoning market to sustainable and
socially responsible hydropower projects.

Investors are increasingly looking Emergence of the green bond market Poland was the first sovereign to
to shift their capital flows towards issue a green bond in 2016 and
In order to address threats
sustainable projects and assets, a has since been followed by France,
from climate change and other
trend which is reflected in the rapid Nigeria, Belgium, Fiji and Indonesia,
environmental risks, coupled with
growth of the green bond market with several other countries
an ever widening infrastructure
over the past couple of years, albeit developing plans to follow suit.
gap, a significant realignment of
from a small base. In 2017, USD 160
capital markets is required. More Green bonds for
billion of labelled green bonds were
than a decade after the European financing hydropower
issued, nearly double that of the
Investment Bank (EIB) issued the
previous year, and expectations are To date, concerns surrounding
world’s first labelled green bond,
that 2018 will see issuances exceed the level of methane emissions
the green bond market is now billed
USD 250 billion. from tropical hydropower
as an important catalyst for the
reservoirs have led to all new
As the market matures, the various transition to a low-carbon economy,
hydropower development with
definitions of what constitutes reflecting the growing attractiveness
a capacity of more than 20 MW
a labelled green bond will become of bond financing for renewable
being excluded from the CBI’s
more standardised and robust. energy projects.
classification of a labelled green
This will only further whet the
While the market was initially bond, no matter the location
appetite of investors as a growing
dominated by issuances from or type (i.e. storage, run-of-river
coalition of organisations, including
supranational organisations such and pumped hydropower).
the United Nations Framework
as the EIB and World Bank, this
Convention on Climate Change, This has had major implications
is changing as corporates and
have set a target of USD 1 trillion across the green bonds ecosystem
commercial banks recognise that
worth of issuances by 2020. as issuances from many corporates,
promoting and operating sustainable
commercial banks, development
Notwithstanding, existing standards business activities is not simply about
banks and governments have
have largely excluded hydropower, being good corporate citizens, in fact
excluded the proceeds from being
the world’s largest source of it’s critical to adequately manage risk
used to finance medium and
renewable electricity. This is creating into the future.
large hydropower developments.
uncertainty and stifling the sector’s
National, provincial and municipal Green bond indices such as S&P
access to this growing source of
governments, buoyed by the and Solactive also rely on the CBI’s
finance as highlighted by the 2018
Paris Agreement and the need to taxonomy to determine a bond’s
Hydropower Status Survey, which
meet their Nationally Determined eligibility. Other standards have
found that nearly three-quarters
Contributions, are also entering similar exclusions, and while the
(72.5 per cent) of respondents –
the green bond market to finance Bloomberg Barclays MSCI Green
comprising mainly of senior decision-
low-carbon infrastructure and Bond Index allows large hydropower,
makers from hydropower businesses
build resilience to incorporate it cannot represent more than 10 per
- believe that greater clarity on green
the impacts of climate change. cent of the bond’s proceeds, ruling
bond eligibility is needed.
out most projects.

030 | International Hydropower Association | Hydropower Status Report 2018


HYDROPOWER ISSUES IN FOCUS
As a result, existing standards are Reflecting the role that hydropower Protocol, and aligns with the World
severely limiting green finance being can play in the transition to a low- Bank’s new Environmental and Social
directed to a technology, which carbon economy, in June 2016 the Framework and the International
provides over two-thirds of the world’s CBI established the Hydropower Finance Corporation’s Environmental
renewable electricity and will be Technical Working Group (TWG). and Social Performance Standards.
critical to meeting the goals set out Bringing together a host of industry,
The development of the CBI’s criteria,
in the Paris Agreement. As well as environmental, technical and water
together with the forthcoming
being a renewable, low-carbon source experts drawn from international
launch of the ESG Tool, will provide
of electricity, due to its operational NGOs, government and academia, the
investors with practical, transparent
flexibility and storage capabilities, TWG has taken a robust, science-based
and cost-effective means to
hydropower also enables the greater approach to develop criteria that
evaluate projects, giving them the
penetration of variable renewables identifies climate-aligned hydropower
confidence they require to invest
such as wind and solar. investments and assets across all sizes,
in environmentally sustainable and
types and locations.
Hydropower-specific criteria: socially responsible hydropower.
a breakthrough? Towards the future
The key to unlocking the full Later this year, the CBI is due to publish Contact us
potential of the green bond market its draft hydropower criteria for public
for hydropower financing is the comment. The criteria is expected to Nicholas Troja, Senior Analyst at IHA
development of sector-specific cover three main elements, namely nicholas.troja@hydropower.org
eligibility criteria, which gives issuers climate mitigation, climate adaptation
and investors the confidence to and resilience and adherence to
invest in climate-aligned and socially broader environmental, social and
responsible hydropower development. governance good practice.
The demand is there, with over
In addition, a new tool developed by
half of the respondents to the 2018
IHA and partners – the Hydropower
Hydropower Status Survey stating that
Sustainability Environmental, Social
their organisation expects to finance
and Governance Gap Analysis Tool,
or refinance a hydropower project
or ESG Tool – which is soon to be
via the green bond market over the
launched (see article on Sustainability
next five years.
page 26), will be used to assess a
project’s performance against these
elements. The ESG Tool is based
on the internationally recognised
Hydropower Sustainability Assessment

| 031
Regional interconnections

Cross border transmission


in Central America
Central America’s integrated regional electricity grid provides
a model for other regions seeking energy interconnections
and market integration.
The Central American Electricity
Interconnection System (SIEPAC)
integrates six countries into a regional
grid and has been operating for five
years. It is used to enable the Regional
Electricity Market (MER) and works as a GUATEMALA
Panaluya Rio Lindo HONDURAS
regional power pool for trading partners. Guate Norte
Guate Este
Cajon

T
Starting in Guatemala, the system Tamara

branches out through El Salvador and


Ahuachapán
Nejapa Pavana

Honduras, and then passes through 15 de Sept


EL SALVADOR
NICARAGUA

Nicaragua, Costa Rica and Panama.


The grid uses a single-circuit 230kV Planta Nicaragua
Ticuantepe
transmission line with a number
of substations installed, and covers Cañas
a distance of 1,830 km. COSTA RICA

Representing a major achievement Parrita

for the region, the SIEPAC project


Palmar Norta PANAMA
Rio Claro

was developed under a partnership Transmission Veladero


Country
between host governments and (km)
financing institutions at a total cost
Guatemala 281.8
of USD 506 million.
El Salvador 282.3
When considering the high share of
renewables in Central America’s energy Honduras 369.4
mix, the SIEPAC provides a model for
other regions around the world which Nicaragua 293.5
are seeking energy interconnections Costa Rica 462.4
and options for market integration.
Panama 140.3
Market trends
Total 1,829.7
Trading activity has increased over the Figure 3: SIEPAC transmission map
last five years, according to statistics
compiled by the SIEPAC steering
committee (Director Council of the
Regional Electricity Market of Central
America - CDMER). The total volume
of transactions in the MER was 478
GWh in 2013, a figure which had

032 | International Hydropower Association | Hydropower Status Report 2018


HYDROPOWER ISSUES IN FOCUS
1,800
January to April during the dry season
1,500 when hydropower generation was
constrained, whereas in other years
1,000 its excess hydropower generation
GWh: Sale (+), Purchase (-)

resulted in a net export balance.


500
Generation is not exclusively
0 renewable in Guatemala and Panama,
but exports from these countries are
-500 clearly supporting the smaller grids of
El Salvador and Nicaragua, as well as
-1,000 Honduras, with a significant proportion
coming from hydropower reserves.
-1,500 In 2013, the SIEPAC was credited
with helping Panama recover from
-1,800
an energy crisis due to an extreme
2013 2014 2015 2016 Sep-17
drought, using power supplied from
Guatemala El Salvador Honduras Nicaragua Costa Rica Panama El Salvador, Honduras and Nicaragua.
A model for regional interconnection
Figure 4: Net annual electricity exchange in the regional wholesale market
With increasing power exchanges
and competitive wholesale prices,
doubled by the end of 2014 and top represent Guatemala and show the SIEPAC is showing how regional
multiplied by nearly five times to the country was a net exporter into the interconnection can benefit trading
2,232 GWh by the end of 2017. MER over the last five years. The dark partners. For the countries with
blue bars across the bottom represent relatively small installed capacities,
While transactions have risen, the SIEPAC provides access to new
El Salvador, showing it has been a net
wholesale prices in the regional supplies and is improving energy
importer along with Honduras and,
market have come down over the security right across the region. Much
recently, Nicaragua. This indicates
last few years. Electricity nodal prices of the shared energy is clean power,
generators located in Guatemala
in the MER showed an initial spike given the growing contribution from
were supporting power demand
at the beginning of 2014, but then renewables in Central America, which
in El Salvador through the SIEPAC.
progressively reduced and, since will help offset fossil-fired generation
Costa Rica was a net exporter in 2017,
2015, monthly average prices have and reduce emissions, operating costs
as well as 2015, and was a net importer
generally remained below USD 100 and inefficiencies.
in 2013, 2014 and 2016.
per MW. Some months in 2016 and
2017 saw fluctuations in prices, due Power generation The CDMER-SIEPAC steering
for example to excess hydropower in committee is working with the
Across the SIEPAC countries, renewable regional network operating
Panama and Costa Rica spilling onto
capacity has been growing steadily and regulatory institutions on
the regional grid and pulling down
over the last few years and is increasing improvements. These include adding
regional wholesale prices.
its proportion in the energy mix. In a second circuit to double transmission
Net electricity exchanges 2016, renewables contributed 67 per line capacity, and implementing firm
cent of the total 51,000 GWh generated contracts and long-term transmission
The SIEPAC is increasing power
across the six countries, with the rights. These measures will support
exchange between countries and
majority coming from hydropower. the case to build and connect larger
continues to improve security of
power supply. At times a country can Guatemala, Panama and Costa Rica, power plants in the future, including
pool its spare capacity in the regional which have been net exporters, new hydropower projects, which is
market (MER) so that consumers in each generated a similar total another strategic objective of the
neighbouring countries can purchase volume of electricity in 2016 at SIEPAC. Continued harmonisation of
electricity by contracts or using the approximately 10,800 GWh each. In regulations is also a priority, to ensure
spot market. At other times, the same the case of Guatemala, 36 per cent common standards are applied across
country could buy from the regional came from hydropower and most all parts of the network.
market to meet domestic demand. of the remainder from thermal;
The difference between a country’s Panama produced 61 per cent from
total sales and purchases from the hydropower; and Costa Rica supplied
Contact us
MER, over a given time period, gives the largest amount of hydropower at David Samuel, Analyst at IHA
the balance of its cross-border trades. 74 per cent share of national output. david.samuel@hydropower.org
Figure 2 shows the net annual Costa Rica, which interconnects with
electricity exchanges in the regional Nicaragua to the north and Panama
market: the top area of the chart is net to the south, relies on hydropower for
sales and GWh purchases (positive) and three quarters of its total generation
the bottom area is net GWh purchases mix of 10,800 GWh. In 2016 the
(negative). The green bars across the country’s imports increased from

| 033
Climate resilience

Developing guidelines for the


hydropower sector
New hydropower sector climate resilience guidelines being
developed by IHA, the World Bank and EBRD in consultation with
the hydropower sector will provide good practice guidance for project
owners, governments, financial institutions and private developers.

Hydropower systems are Joining forces, the World Bank


characterised by their longevity and and IHA organised a workshop
are traditionally designed on the basis at the end of 2015 to engage Climate resilience is the capacity
of long-term historical hydrological with other international financial of a hydropower project or system
data and forecasts. Hydropower institutions (IFIs) such as the to absorb the stresses imposed by
projects are, nonetheless, susceptible European Bank for Reconstruction climate change, and in the process
to the impacts of climate change due and Development (EBRD) and
to their dependency on precipitation hydropower organisations that were to evolve into greater robustness.
and runoff, and exposure to extreme incorporating resilience assessments
weather events. in their proposals and projects.
In 2013, the International With increasing awareness of the The guidelines will assist hydropower
Development Association, part of need to develop guidance to build companies to consider climate-
the World Bank Group, at its IDA17 hydropower infrastructure which related risks in project design and
Replenishment Meeting called can cope with the risks of variable operations and address the needs
for screening all new operations climatic conditions, the World of the wider financial community,
for short- and long-term climate Bank took the initiative to develop policy-makers and local communities.
change and disaster risks, and where a set of guidelines relevant to the
risks exist, to develop appropriate hydropower sector on industry good Path forward
resilience measures. The World Bank practice in building climate resilience Planning hydropower systems
thereafter published the Decision into new and existing projects. from a long-term, climate-resilient
Tree Framework in 2015 to outline perspective will ensure that future
The beta version of the
a pragmatic process for robust risk generations inherit infrastructure
Hydropower Sector Climate
assessment and decision making for that will not be compromised by
Resilience Guidelines was shared
water resource projects. climate change.
in September 2017 after multiple
In response, and recognising the consultations and engagement The aim of the Hydropower Sector
increased focus given to climate risk with key stakeholders ranging Climate Resilience Guidelines is
and resilience among its members, from IFIs, major hydropower to provide practical and workable
IHA carried out a survey of members developers, owners and operators, international good practice guidance
in 2015 to receive insights on climate- intergovernmental and not- for project owners, governments,
related risks and actions. The surveyed for-profit organisations, to financial institutions and private
hydropower organisations agreed international consultancies developers. The guidelines will
that climate change would impact and independent experts. incorporate climate change resilience
their operations and requested and hydrological risk management
guidance to become more resilient. into hydropower project appraisal,
design, construction and operation,
resulting in more robust and
resilient projects.
034 | International Hydropower Association | Hydropower Status Report 2018
HYDROPOWER ISSUES IN FOCUS
Process for developing the guidelines

PROJECT PHASES ACTIVITIES TO DATE


2015 October 2015
Global survey to IHA members
SECTOR ASSESSMENT
OCT. Sector survey to identify stakeholders November 2015
2015 WBG / IHA workshop on Resilience of Hydropower
preparedness and main issues 2016 and Dams to Climate Change and Natural Disasters
(London, UK)
PROJECT CONCEPTION January 2016
Face-to-face meetings to refine needs Call for consultancy to elaborate a beta
and programme of work version for the climate resilience guidelines

October 2016
PREPARATION OF BETA VERSION Project kick-off meeting (Washington, DC)
JAN.
2016 Selection of consultant, with regular
February 2017
status meetings Mid-term status meeting (London, UK)

PRESENTATIONS AND OUTREACH


2017 May 2017
Hydrovision 2017 (Denver, USA)
STAKEHOLDER ENGAGEMENT World Hydropower Congress (Addis Ababa, Ethiopia)
Outreach, consultation and feedback August 2017
from operators & developers Sustainability in Hydropower Forum (Oslo, Norway)
September 2017
UNFCCC Forum on the Standing Committee on Finance
(Rabat, Morocco)
October 2017
RELEASE OF BETA VERSION Hydro 2017 conference (Seville, Spain)
SEPT. Forum on building climate resilience (Dushanbe, Tajikistan)
First viable version prepared by a
2017
consultancy July 2017
Final status meeting (Washington, DC)
2018
September 2017
Release of beta version
TESTING CAMPAIGN (2018)
Apply guidelines and receive feedback November 2017
Stakeholder meeting on the outcomes of the beta version
from operators around the world
Washington, DC

REFINEMENT
Analyse feedback and update the January 2018
guidelines as required. Establishment of secretariat to manage the testing phase

MAY
GUIDELINES LAUNCH January 2019
Launch of tested guidelines at the 2019 Workshop to share the outcome of the climate resilience
2019 guidelines testing phase
2019 World Hydropower Congress
in Paris
14-16 May 2019
World Hydropower Congress: launch of climate resilience
guidelines

Following the workshop in November Achieving a major consensus around Contact us


2017, the stakeholders agreed to test climate resilience guidelines will
the guidelines on pilot projects during be important for the widespread Maria Ubierna, Senior Analyst at IHA
2018. The objective is to apply the maria.ubierna@hydropower.org
adoption of the guidelines among the
guidelines to real projects worldwide hydropower sector worldwide.
to gather useful feedback and ensure
their applicability and viability.
The World Bank and EBRD are
supporting IHA to coordinate the
testing of the Hydropower Sector
Climate Resilience Guidelines. The Reach out to
IHA secretariat Testing the MAY
lenders and
feedback and recommendations establishment testers guidelines
2019
from the testing phase will be used to
update the guidelines.

Integration of Launch of the


feedback from guidelines at 2019
JAN tested projects World Hydropower
2018 Congress

| 035
Operations and maintenance

Technological headwinds
are changing the face of
hydropower operations
Renewable energy targets assume that hydropower will
make a significant contribution to carbon reduction for
decades, if not centuries, into the future. Such projections
rely on prolonging the life of hydropower assets and
optimising performance using new technologies.

Hydropower projects support innovation in hydropower operations software can play a major role in
decarbonisation, provide over 90 and maintenance, in both developed improving decision-making and
per cent of global energy storage for and developing country contexts. supporting hydropower operations
variable renewables such as solar and to work more efficiently with other
At a meeting of the African Union’s
wind, and offer water management renewable technologies.
Specialised Technical Committee
services to mitigate floods and
on Communication and ICT in As an example of how countries
droughts. These assets have a long
2017 in Addis Ababa, governments with significant hydropower assets
lifespan and relatively low operating
concluded that digitalisation in are responding to technological
and maintenance costs – typically
particular is “the greatest opportunity innovation, SINTEF, a leading
around 2.5 per cent of the overall
for Africa to drive the fundamental research institution in Norway, is
cost of the plant.
changes of the world in the 21st developing a digital model and
By 2030 over half of the world’s century, if wisely harnessed and prototypes to evaluate the optimal
hydropower plants will be due for mainstreamed.” lifetime utilisation of components
upgrade and modernisation or in hydropower plants. The initiative
New digital opportunities
will have already been renovated, will incorporate many of the key
according to IHA’s database. The revolution in digitalisation which elements of digitalisation including
In this year’s 2018 Hydropower has swept through computing to machine learning, cyber-physical
Status Survey, however, 79 of 95 encompass algorithmic trading, systems, and the Internet of
respondents working at hydropower artificial intelligence and blockchain Things. In addition, Portugal’s EDP,
companies said they expect to technology, has not left hydropower one of Europe’s largest electricity
contract major upgrading and untouched. In the sector, enhanced operators, has begun a programme
modernisation works within the digital systems are part of a growing of implementing digitalisation
next 10 years. trend towards improving the through its entire hydro fleet to
performance of turbines, plants more efficiently manage its plants in
What explains the high percentage
and equipment, by reducing costs, Iberian peninsula.
of respondents who say major works
adding flexibility and enhancing
are just around the corner? Part of Digitalisation of hydropower systems
asset management.
the reason is a commitment among is increasingly being implemented
industry to adopt best practice in Equipment manufacturers are to add enhanced control systems
operations and asset management embracing digitalisation as a way for operations to work together with
plans: a desire for optimised to widen their scope of services other renewable resources such and
performance and increased and to extend the life of existing wind power and solar photovoltaics,
efficiency. Another major driver hydropower assets. It is their belief in order to provide increased
is the sheer pace of technological that digital control systems and flexibility and enhanced control for

036 | International Hydropower Association | Hydropower Status Report 2018


HYDROPOWER ISSUES IN FOCUS
Image credit: Voith Hydro

ancillary services, frequency control Several institutions are already Software is helping hydropower
and balancing services. advancing knowledge on operators make better informed
methodologies that can contribute decisions about where and when
An example of where enhanced
to a more global system of to invest capital expenditures, to
digital control systems has been
benchmarking good practice in the improve performance and manage
implemented to integrate variable
O&M of hydropower assets. The Centre risk in their ageing hydropower
renewables with a pumped
for Energy Advancement through infrastructure. For example, asset
hydropower scheme is in the Canary
Technological Innovation (CEATI), management optimisation software
Islands at the El Hierro facility. For this
based in Canada, publishes technical is now being used by many
hybrid system, digital solutions have
papers outlining good practice. One organisations across the world.
been installed in the control centre
such publication covers a Maturity
to optimise the operator’s decisions, The path forward
Matrix (MM) which is utilised as a
resulting in an increased share of
communication tool and an effective IHA is committed to advancing
renewable energy integrated into
means to document and compare knowledge in asset management
the El Hierro electricity system, and
activities with best-known practices. under three general areas: operations
ensuring the continuity of power
and maintenance good practice,
supply on the island. CEATI also provide technological
digitalisation of hydropower and
support for the hydroAMP
A new paradigm modernisation of existing assets.
methodology, a well-known asset
In the next year, IHA will prepare
A challenge for the global hydropower management tool developed to
a compendium of O&M models
sector today is the establishment identify and develop long-term
and industry good practice in
of benchmarking metrics to allow investment strategies for hydroelectric
collaboration with the World Bank
hydropower companies to evaluate facilities and to prioritise capital
Group with the goal of showcasing
their current O&M practices against investments in hydroelectric
it at the next World Hydropower
best in class utilities. For this to evolve, equipment. The hydroAmp tool
Congress in Paris, France between
there will need to be a transition to creates a framework to streamline
14-16 May 2019.
a new paradigm in the hydropower and simplify methods for objectively
sector, one in which data sharing evaluating the condition of
becomes more prevalent and hydroelectric equipment for the
condition monitoring databases are purpose of supporting asset and risk Contact us
more transparent and contain much management decision-making.
more information. Bill Girling, Senior Analyst at IHA
bill.girling@hydropower.org

| 037
For more information: hydropower.org/congress

The seventh World Hydropower Congress is Join us


organised by the International Hydropower Latest information on the programme
Association (IHA) and hosted in partnership with and speakers will be announced at
UNESCO’s International Hydrological Programme. hydropower.org/congress.

Delegates from up to 100 countries are expected Contact us at congress@hydropower.org


to be represented at the biennial event in Paris, for early registration and to participate
France, between 14 and 16 May 2019. in preparatory meetings.

With the theme of ‘The Power of Water in a


Sustainable, Interconnected World’, the Congress Become a partner
will focus attention on hydropower’s role in To become a strategic partner and learn
delivering on the Paris Climate Agreement about sponsorship opportunities, please
and the Sustainable Development Goals. contact iha@hydropower.org

038 | International Hydropower Association | Hydropower Status Report 2018


Delivering on
the Paris Climate
Agreement and
the Sustainable
Development Goals
The power of water in a
sustainable, interconnected world

14 -16 MAY 2019 • PARIS

The global gathering that brings together decision-makers,


innovators and experts to shape the future of hydropower.

This high-level event will chart the course for hydropower


development, ensuring that reliable and resilient water and
energy systems benefit all.

ORGANISING
PARTNERS International
Hydrological
Programme

| 039
Itaipu Binacional
Image credit: Alexandre Marchetti

040 | International Hydropower Association | Hydropower Status Report 2018


HYDROPOWER BY REGION
HYDROPOWER BY REGION
Maps

Where has new hydropower capacity been added in 2017? 42

Global hydropower technical potential, generation and installed capacity by region 44

Analysis

North and Central America 47 Europe 71

South America 55 South and Central Asia 79

Africa 63 East Asia and Pacific 87

| 041
WHERE HAS HYDROPOWER
CAPACITY BEEN ADDED IN 2017?

20 34

23

11 4

33

Key 31
Country rank 22 29 12
1

99 MW and below

2
100 MW to 999 MW
14
21
1,000 MW to 10,000 MW

15 27

NEW INSTALLED CAPACITY BY COUNTRY*

Rank Country Capacity added (MW) Rank Country Capacity added (MW)
1 China 9,120 11 United States 283
2 Brazil 3, 376 12 Côte d’Ivoire 275
3 India 1,908 13 Switzerland 265
4 Portugal 1,050 14 Peru 200
5 Angola 1,018 15 Chile 181
6 Turkey 592 16 Laos 166
7 Iran 520 17 Georgia 163
8 Vietnam 373 18 Pakistan 157
9 Russia 364 19 Zimbabwe 152
10 Sudan 320 20 Canada 139

* including pumped storage

042 | International Hydropower Association | Hydropower Status Report 2018


HYDROPOWER BY REGION
37 32

36 9
40
13
41
6
26 28
17
7
39
1
18 24

3 16 8
10
25
30 35

38 42

5
19

Rank Country Capacity added (MW) Rank Country Capacity added (MW)
21 Bolivia 120 32 Finland 38
22 Colombia 119 33 Mexico 33
23 France 112 34 United Kingdom 32
24 Nepal 100 35 Sri Lanka 29
25 Cambodia 100 36 Belarus 24
26 Albania 75 37 Norway 20
27 Argentina 72 38 Congo 19
28 Serbia 68 39 Afghanistan 19
29 Liberia 66 40 Austria 14
30 Democratic Republic 61 41 Romania 12
of the Congo
31 Panama 51 42 Uganda 12

| 043
HYDROPOWER CAPACITY
AND GENERATION BY REGION

203

783

167

716

Installed capacity in 2017 in GW

Estimated generation in 2017, in TWh per year

Technical potential assuming maximum generation

044 | International Hydropower Association | Hydropower Status Report 2018


HYDROPOWER BY REGION
249
144
599
456
468

1,501
131
35

| 045
BY REGION

046 | International Hydropower Association | Hydropower Status Report 2018


NORTH AND CENTRAL AMERICA INSTALLED CAPACITY
NORTH AND
CENTRAL AMERICA

Shawinigan Falls dam,


Canada

| 047
NORTH AND CENTRAL AMERICA
INSTALLED CAPACITY

Key

1 Country rank 3 12
199 MW and below
15 13 8
14 11
200 MW to 1,999 MW 6 16
7 18
9 10 17
2,000 MW to 9,999 MW
4
5
10,000 MW to 19,999 MW

20,000 MW +

048 | International Hydropower Association | Hydropower Status Report 2018


NORTH AND CENTRAL AMERICA INSTALLED CAPACITY
TOP SIX COUNTRIES BY INSTALLED HYDROPOWER CAPACITY (MW*)

1 2 3 4 5 6
United States Canada Mexico Costa Rica Panama Guatemala
102,867 80,985 12,125 2,123 1,777 1,156

NORTH AND CENTRAL AMERICA


CAPACITY BY COUNTRY*
Total installed capacity
Rank Country (MW)
1 United States 102,867
2 Canada 80,985
3 Mexico 12,125
4 Costa Rica 2,123
5 Panama 1,777
6 Guatemala 1,156
7 Honduras 558
8 Dominican Republic 543
9 El Salvador 471
10 Nicaragua 123
11 Puerto Rico 100
12 Cuba 64
13 Haiti 61
14 Belize 53
15 Jamaica 23
16 Guadeloupe 10
17 Saint Vincent and the Grenadines 7
18 Dominica 6

* including pumped storage

| 049
North and Central America

OVERVIEW

Hydropower remains a critical energy In the United States, the US In Mexico, significant reform to the
resource for North and Central American Department of Energy is supporting the energy market has been imposed in
countries as well as several Caribbean advancement of 50 GW of hydropower recent years, transforming the energy
island nations. The United States and development by 2050, attained through market to allow public and private
Canada account for more than 90 per retrofitting 13 GW of new generation companies to participate under equal
cent of the region’s installed capacity capacity – upgrades to existing plants, conditions, in order to offer electricity at
and continue to be among the world’s adding power at existing dams and competitive prices. In June of 2017, the
leading countries in terms of installed canals, and limited development of Ministry of Energy released PRODESEN,
hydropower capacity, with 102.9 GW new stream-reaches – and 36 GW of a 15-year infrastructure development
and 80.8 GW respectively (including new pumped storage capacity. In 2017, programme for the National Electric
pumped storage) at the end of 2017. 140 MW was added to existing facilities, System (SEN) addressing generation,
Hydropower currently contributes as well as 139 MW of new pumped transmission and distribution
around 6 per cent to total electricity storage. Shifts in the policy landscape requirements. While the Secretariat of
generation in the United States, while include a comprehensive energy bill Energy (SENER) oversees production
the figure in Canada is 64 per cent. to modify the definition of renewable and regulation, the Comisión Federal
energy to include hydropower and de Electricidad (CFE), the state-owned
In Canada, 139 MW of new hydropower,
a licensing reform bill. The National electric utility which once held a
comprised of several run-of-river
Hydropower Association along with monopoly on all power activities, has
projects, came online in 2017. These
other industry representatives have been restructured to increase private
include the 28 MW Peter Sutherland
continued to promote growth in the sector engagement and, potentially,
project developed by Ontario Power
hydro sector, calling for regulatory encourage independent power
Generation in partnership with Taykwa
reform, tax incentives and other market producers in hydropower development.
Tagamou Nation, as well as two smaller
policy changes. CFE was unbundled into separate
projects in British Columbia, the 25 MW
generation, transmission, distribution,
project on Boulder Creek, and an 81 MW
supply and marketing subsidiaries, with
installation on the Upper Lillooet River.
power system operations transferred
Work continues on three major storage
to the Centro Nacional de Control de
projects: Keeyask Generating Station in
Energia (CENACE) which now acts as the
Manitoba, due in 2021, Site C in British
independent system operator.
Columbia, due in 2024, and Muskrat
Falls in Newfoundland and Labrador,
due in 2020.

050 | International Hydropower Association | Hydropower Status Report 2018


NORTH AND CENTRA AMERICA OVERVIEW
Bipole III transmission line.
Credit: Manitoba Hydro

In the Caribbean Sea, Puerto Rico is In Guatemala, the utility Instituto The reservoir feeds several hydropower
planning to rehabilitate the 3 MW Nacional de Electrificacion (INDE) plants including the 174 MW Dengo,
Lago Loiza plant after it was closed 24 sought bids to perform feasibility 157.4 MW Arenal and 32 MW Sandillal
years ago. With only 2 per cent of the studies on the 200 MW Xalala projects. The facilities together provide
territory’s generation coming from hydroelectric project on Guatemala's about a fifth of the country’s total
renewable resources, efforts to restore Chixoy River. As well, Hidroelectrica power supply.
power have remained a top priority Xolhuitz started operating
In Honduras, which has a target to
after Hurricane Maria struck a hydroelectric plant which generates
have 95 per cent of energy supplied
in September 2017. 2.3 MW in March of 2017 in Guatemala.
from renewable sources by 2027, the
In the Dominican Republic, work is In Panama, Hidro Caisan S.A. submitted state-owned power company Empresa
underway at the 10.7 MW Hatillo small an environmental impact statement to Nacional de Energia Electrica (ENEE)
hydropower plant, located on the expand the El Alto Hydroelectric power issued a tender to design a hydropower
Río Yuna, to add a new powerhouse plant, located in Chiriquí province, from resource investment plan for five
together with a new generation 63 MW to 73.2 MW at an estimated cost projects: 270 MW Patuca II, 150 MW
unit. In addition, construction of the of USD 75 million. Patuca II-A, 98 MW Llanitos, 173 MW
Montegrande project is underway Jicatuyo and 212 MW Mixcure.
In Costa Rica, the Institute Costarricense
consisting of a multipurpose dam on
de Electricidad (ICE) began a 10-month Several cities in North America report
the Yaque del Sur riverbed; the project
project that will increase the height of that at least 70 per cent of their
includes an 18 MW hydropower facility
its Sangregado dam. ICE said it plans electricity is generated by hydropower,
and will provide storage for flood
to increase the core by 1.5 metres, according to data published by the
management, as well as domestic water
strengthening the 38 year-old structure CDP world renewable cities reporting
supply, irrigation and the development
and increasing the capacity of the initiative (2018). These include large
of aquaculture and tourism activities.
reservoir behind it. Canadian cities Winnipeg (100 per cent),
Montreal (95 per cent) and Vancouver
(92 per cent), as well as Seattle (89 per
cent) in the United States.

| 051
North and Central America

MEXICO

Hydropower remains the largest source Mexico continues to pursue its Federal Electricity Commission (CFE), The
of renewable energy in Mexico, making ambitious goals for increasing the Nature Conservancy-Mexico (TNC) and
up about 80 percent of the country’s country’s share of renewable energy the Mexican Association of Hydroelectric
renewable energy supply. At the end sources within its overall generation Energy (AMEXHIDRO).
of 2017, roughly 17 per cent of the portfolio . The Ministry of Energy
Mexico’s national transmission grid has a
country’s total installed capacity was released PRODESEN, the fifteen-year
total interconnection capacity of 74,208
hydropower, accounting for 12 per cent infrastructure development programme
MW, representing a 4 per cent increase
of all sources of electricity generation. for the National Electric System (SEN).
over 2015. Proposals are in place to
The country has an installed hydropower PRODESEN is a centralised planning
increase transmission interconnections
capacity of 12,125 MW and an estimated initiative addressing important elements
with tenders to build five transmission
27,000 MW of economically feasible of the national electricity system
lines worth USD 6.6 billion.
hydropower potential. including generation, transmission and
distribution requirements. Mexico is integrated within the Central
The government has imposed
American Electrical Interconnection
significant reforms to the energy By 2024, Mexico hopes to supply
System (SIEPAC). The interconnection
market in recent years to allow public 35 per cent of power generation
between Mexico and Guatemala is
and private companies to participate through clean energy, a target which
already fully operational, whilst that
under equal conditions and offer will increase to 50 per cent by 2050.
between Panama and Colombia is in
electricity at competitive prices . The These aggressive goals should support
the design phase; the extra-regional
Comisión Federal de Electricidad, the hydropower development, including
interconnection aims to establish a 98.6
state-owned electric utility of Mexico, the maintenance and modernisation of
kilometre long transmission line with
widely known as CFE, once held a existing infrastructure.
a generation capacity of 400 KW. In
monopoly on all power activities.
Growth in hydropower capacity has addition to the Baja California-Sonora,
Under the market reform, CFE has been
however been stagnant over the Oaxaca-Mexico City and Baja California-
restructured to a competitive market,
past two years, while wind power has Sonora transmission lines, Mexico is
allowing for increased private sector
enjoyed a 33 per cent increase and solar also finalising studies to auction two
engagement and increasing the future
has doubled since 2015. Hydropower underwater transmission lines.
role of independent power producers in
development has stalled following
hydropower development.
opposition to large-scale projects. As
While the Secretariat of Energy (SENER) an example of this, the only large-scale
oversees production and regulation project, Chicoasen 2, was delayed after
of energy in Mexico, CFE continues public protests.
to be the primary retail supplier of
To address the concerns of protestors
electricity in the country. CFE was
and local communities, the government
unbundled into separate generation,
announced a commitment to undertake
transmission, distribution, supply and
a comprehensive study of sustainable
marketing subsidiaries, with power
development of energy infrastructure
system operations transferred to the
in Mexico, supported by USD 700,000
Centro Nacional de Control de Energia
in funding from the Inter-American
(CENACE) which now acts as the
Development Bank. The project involves
independent system operator.
Mexico’s Secretary of Energy (SENER), the

131.5 MILLION 12,125 MW 31,370 GWh 17%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

052 | International Hydropower Association | Hydropower Status Report 2018


NORTH AND CENTRAL AMERICA REGION
CUBA

Energy supply in Cuba is largely based potential is estimated to be 135 MW. small hydro plant to come on-line, but
on thermal sources of electricity The government has drawn up plans that the initiative should be completed
generation, with oil and gas making for the development of 74 small within seven years.
up 96 per cent of energy supply and hydropower plants, representing over
Cuba is one of the few countries in
only 4 per cent made up of renewable 56 MW in capacity (274 GWh). This
the world that does not belong to any
generation including biomass (3 per would nearly double the country’s
major international finance institutions
cent) and small-scale hydropower (1 current hydropower capacity, producing
(IFIs), including the International
per cent). Cuba has over 170 small an estimated 274 GWh of renewable
Monetary Fund (IMF), the World Bank,
hydro plants spread throughout the generation annually and offsetting up
and the Inter-American Development
country, the largest being the 43 MW to 230,000 tonnes of CO² emissions.
Bank (IDB). When a distressed
Hanabanilla plant.
Cuba has signed a deal with the Kuwait macroeconomic situation is coupled
The Cuban government has aspirations Fund for Arab Economic Development with weak institutional capacity in
to increase the share of renewables that will see KFAED provide USD 30 the energy sector, IFIs can provide a
significantly over the next two million in financing for the construction guarantee that is critical to addressing
decades, to generate 24 per cent of the of 34 small hydropower projects. the risks associated with these factors.
country’s electricity by 2030. This will be KFAED has said the 34 small hydro
Cuba’s electricity grid was developed
comprised largely of biomass and wind, projects will be constructed on existing
in the early 2000s when older Russian
with additional small hydro playing a infrastructure and have a cumulative
systems began to fail, and is the second
lesser role. capacity of about 14.6 MW. The initiative
most decentralised grid in the world
will also include construction of three
With no major rivers or large bodies after Denmark.
linking substations that will transmit to
of inland water, Cuba’s development
Cuba’s national grid, along with about
of hydropower will remain focused on
75 km of transmission lines. KFAED did
small projects. Small hydro technical
not specify when it expects the first

11.4 MILLION 64 MW 100 GWh <1%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

| 053
North and Central America

UNITED STATES OF AMERICA

The United States is second only reduce carbon dioxide emissions Under the 2018 government
to China in terms of the generating by over 110,000 tonnes per year. funding bill, the DOE’s Water Power
capacity of its hydropower plants, Technologies Office would be awarded
Retrofit projects under construction
with a total installed capacity of almost a record USD 105 million with USD
include the 36.4 MW Red Rock7 project
103,000 MW. This comprises about 35 million going to hydro-pumped
which involves a new powerhouse to
80 GW of conventional hydropower storage programmes and USD 70
contain two Kaplan turbine-generator
and almost 23 GW of pumped million going to marine energy
units on the downstream side of the
storage hydropower. and hydrokinetic programmes.
dam and an intake structure on the
In addition, the Promoting
While no new major hydropower upstream side of the dam, being built
Hydropower Development at Existing
projects were commissioned in 2017, at an existing dam on the Des Moines
Non-Powered Dams Act would enable
the US Department of Energy (DOE) River in Iowa.
the retrofitting of existing non-
reported a number of retrofit projects
Other planned projects include powered, federally-owned dams that
were completed, adding 140 MW
Absaroka Energy, which received have the greatest potential for private
of new capacity to existing facilities.
a 5-year operating licence from the U.S. sector hydropower development.
In addition, 139 MW of pumped
Federal Energy Regulatory Commission
hydro storage capacity was added Early in 2018, the DOE approved a
in December 2016 for the 400 MW
at the Northfield Mountain Unit in presidential permit for the Northern
Gordon Butte pumped storage project.
Massachusetts and Ludington facility Pass transmission project, a 192 mile
Construction on the project could begin
in Michigan. transmission line that will bring 1,090
in 2018, with a projected on-line date
MW of hydropower energy from
An additional 50 GW of hydropower of early 2022.
Hydro-Québec to New Hampshire and
capacity could be added nationwide
In addition, the San Diego County to the rest of New England. However,
by 2050, according to the DOE. The
Water Authority and the City of San subsequent to this announcement,
department envisions an aggressive
Diego announced plans for an energy the New Hampshire Site Evaluation
programme that could see up to 6.3
storage facility at the San Vicente Committee voted to deny approval
GW added through upgrades and the
Reservoir in California and are assessing of the project, placing further delays
optimisation of existing hydropower
the potential to develop the 500 MW on the proposed interconection.
plants, 4.8 GW by retrofitting existing
San Vicente Energy Storage Facility to The project is estimated to cost about
non-powered dams, 1.7 GW through in-
increase the availability and efficiency USD 1.6 billion.
stream-reach developments and up to
of renewable energy for the region.
35 GW with pumped storage projects. Plans to develop a Manitoba-Minnesota
In 2017, the U.S. House of long-distance transmission line
The DOE said it would award up
Representatives approved a pair of bills have also encountered delays. The
to USD 30.6 million in Recovery
that would promote the development transmission project aims to bring
Act funding for seven hydropower
of pumped storage projects and add hydroelectricity from generating
projects that modernised existing
hydroelectric capacity to existing non- stations in northern Manitoba, Canada,
facilities. The selected projects are
powered dams. This is projected to cost through the Bipole III transmission line
to be environmentally friendly and
as much as USD 2 billion and create and across the U.S. border as part of a
should increase electric generation by
more than 2,000 jobs through to 2027. 308 MW deal with the Wisconsin Public
an estimated 187 GWh per year. The
Service, in Green Bay, Wisconsin.
department estimates the incremental
energy from these seven plants will

328 MILLION 102,867 MW 322,390 GWh 6.5%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

054 | International Hydropower Association | Hydropower Status Report 2018


SOUTH AMERICA REGION
SOUTH
AMERICA

Itaipu Binacional
Image credit: Alexandre Marchetti

| 055
SOUTH AMERICA
INSTALLED CAPACITY

2
3
13
11 12

10

Key

1 Country rank
6 4
199 MW and below 5

200 MW to 1,999 MW

2,000 MW to 9,999 MW
8

10,000 MW to 19,999 MW

20,000 MW +

056 | International Hydropower Association | Hydropower Status Report 2018


SOUTH AMERICA INSTALLED CAPACITY
TOP SIX COUNTRIES BY INSTALLED HYDROPOWER CAPACITY (MW*)

1 2 3 4 5 6
Brazil Venezuela Colombia Argentina Paraguay Chile
100,273 15,393 11,726 11,242 8,810 7,271

SOUTH AMERICA CAPACITY BY COUNTRY*


Total installed capacity
Rank Country (MW)
1 Brazil 100,273
2 Venzuela 15,393
3 Colombia 11,726
4 Argentina 11,242
5 Paraguay 8,810
6 Chile 7,271
7 Peru 5,385
8 Ecuador 4,409
9 Uruguay 1,538
10 Bolivia 603
11 Suriname 189
12 French Guiana 119
13 Guyana 1

* including pumped storage

| 057
South America

OVERVIEW

South America’s installed capacity of to modernise and liberalise the energy growth of 4.5 to 6.5 per cent on average
hydropower rose by 3.79 GW in 2017 market to attract private investments will be satisfied mainly by hydropower.
– the second largest increase of all at the same time that it is moving away In the pipeline there are 39 hydropower
regions worldwide after the East Asia from large hydropower projects in plants that would add 2,900 MW to the
and Pacific. Most of this increase came support of decentralised renewable National Energy Interconnected Grid.
from Brazil, which makes up more than energy. As a consequence, the Ministry Large transmission lines are needed
60 per cent of South America’s total of Mining and Energy has removed the to connect hydropower plants in the
installed capacity. largest projects from its 10 year pipeline. Amazon basin to electricity demand
centres in the dry Pacific watershed
The major meteorological event that Colombia, which experienced higher
where 70 per cent of the population
is El Niño hit South America heavily in rainfall, saw hydropower installed
lives. The investments needed to cover
2017, leaving 10 times more rainfall capacity increase to 86 per cent of total
generation until 2025 range from USD
than usual in Ecuador and Peru. As generation in 2017, far exceeding the
6.7 to 7.3 billion.
a result of the severe flooding some 70 per cent average generation of the
hydropower plants in Peru shut down past four years caused by drought. In Argentina, hydropower at 11,242
operations. The political impact of El The World Economic Forum ranked MW makes up 33 per cent of total
Niño may lead to the strengthening Colombia 8th in the Global Energy installed capacity. The new government
and development of long-distance Architecture Performance Index is favouring the development of
regional interconnections between (EAPI) which measures countries’ hydropower projects with the 1,740
the region’s countries. ability to deliver secure, affordable MW complex of dams named after
and sustainable energy. Being the first Dr. Néstor Carlos Kirchner and Jorge
Brazil experienced the fourth
non-European country to achieve this Cepernic in Patagonia and the approval
consecutive year of drought and, as a
ranking, Colombia has positioned itself of the Portezuela del Viento plant (210
result, reservoir levels in the country
at the forefront of clean and sustainable MW) located in Mendoza. Argentina
have remained low. The government
energy system worldwide. and Paraguay finally came to a new
took measures to prevent electricity
agreement about the shared costs of
shortages by increasing thermo-electric In Peru, about 50 per cent of electricity
building Yaciretá, the construction of
generation and electricity imports from generation is produced by hydropower,
which was originally agreed in the 1970s
Uruguay and Argentina. The Itaipu however only about 8 per cent of
during an era of dictatorships in both
Binacional hydropower plant was, the estimated hydropower resource
countries; this new agreement ends an
conversely, able to boost production of 70,000 MW has been utilised. The
ongoing dispute and opens a pathway
due to heavy rainfalls in October 2017. country’s National Energy Plan 2014-
for the upgrade and modernisation of
The government is proposing a new law 2025 forecasts that energy demand
the power plant.

058 | International Hydropower Association | Hydropower Status Report 2018


SOUTH AMERICA OVERVIEW
In Bolivia, the Ministry of Energy was is prioritising wind and solar energy
formed by decree in January 2017 projects in a new ‘Green Strategy’.
to centralise and implement power Developing Guyana’s hydropower
sector laws and policies. Its plan for potential would be a big step towards
2016-2025 aims to increase the share the decarbonisation of the country’s
of hydropower in the energy mix heavily oil-based electricity generation.
from 25 per cent to 78 per cent in
In Suriname, after stopping bauxite
order to decrease the dependency on
mining operations in November 2015,
thermoelectric plants, which currently
Alcoa is in the middle of negotiations
account for 80 per cent of electricity
with the government to hand over
generated. This would mean an increase Itaipu Binacional
the Afobaka dam (189 MW) which Image credit: Alexandre Marchetti
of hydropower installed capacity
has provided power to the Alcoa’s
from 614 MW in 2017 to 11,725 MW
aluminium smelter for over 50 years.
in 2025, which would position Bolivia
as an exporter of surplus energy. In Across South America, 51 cities report
September, the multipurpose Misicuni that over 70 per cent of their electricity
project entered into operation with an is generated by hydropower, according
installed capacity of 120 MW. to CDP which tracks the electricity mix
in more than 570 cities worldwide. Thirty
In Guyana, the Amaila Falls hydropower
cities in the region, including Brasília,
project (165 MW), supported
Salvador, Curitiba and São Gonçalo in
financially by Norway, is a concern due
Brazil, and Medellín in Colombia, report
to environmental and institutional
generating 100 per cent of electricity
capability challenges. The government
from hydropower.

| 059
South America

BRAZIL

Brazil has the largest installed Others, like CEMIG from Minas Gerais With Brazil moving away from large
hydropower capacity in South America, state, refused to accept the conditions hydropower projects in favour of
and comprises two thirds of the and, as a result, when the concession of decentralised renewable energy, there
continent’s installed capacity, at 100,273 some plants expired, the government are fewer major hydropower projects
MW. The sector makes up 64 per cent of auctioned the licenses. being prepared in the 10-year pipeline
total Brazilian energy capacity and of the Ministry of Mining and Energy.
In September 2017, the operating rights
meets more than three-quarters of
of four plants that belonged to CEMIG The 11,200 MW Belo Monte project,
electricity demand.
were auctioned. The 424 MW Jaguara in northern Brazil, could be the
The year 2017 marked the fourth and the 408 MW Miranda plants were country’s last mega project. When
consecutive year of a severe drought acquired by Engie, the 380 MW Volta completed, it will become the third
in many parts of the country, Grande was awarded to Enel and China’s largest hydropower plant in the world.
which impacted reservoir levels. State Power Investment Corp took over The first turbine was commissioned in
To compensate, thermoelectric power the operations of the 1,710 MW São 2016, and it is expected to become fully
plants, which are more expensive Simão plant. operational in 2020.
than hydropower, and imports from
The new government of Michel The 700 MW São Manoel hydropower
Uruguay and Argentina, have reinforced
Temer has proposed a new legal plant saw its first turbine enter into
electricity supplies. Conversely, due
framework to modernise and liberalise operation in December 2017. The plant
to heavy rainfall in southwest Brazil in
the energy market to attract private is located over the Teles Pires, a tributary
October 2017, Itaipu Binacional was
investments. Among the proposed of the Amazon river, that flows along
able to boost hydropower production,
measures are: opening the market to the border of the state of Mato Grosso
meaning it could guarantee and exceed
new customers, the gradual ending and Pará. Earlier in the year, in July
energy supply at a crucial time.
of subsidies, maximising the cohesion 2017, works were temporally halted by
Large hydropower remains the major between energy prices and operations, protests demanding indigenous rights.
source of electricity supply, with other introducing a capacity remuneration
As large assets are ageing, major
renewable energies representing about mechanism, and resolving judicial
modernisation works are either planned
10 per cent. Wind, solar and small hydro disputes related to hydrological risk
or underway at hydropower projects
(defined as less than 50 MW in Brazil) for hydropower plants. The Ministry
across the country, including the 3,440
have increased their share of the energy of Mining and Energy is planning the
MW Ilha Solteira (1973) and 1,551 MW
mix since energy sector reforms in 2012 privatisation of Eletrobras, the state-
Jupia (1969) plants, both of which were
that were enacted under the presidency owned company that developed the
privatised in a 2015 power auction.
of Dilma Rousseff. main large hydropower projects such
The 14,000 MW Itaipu Binacional (1984)
as Belo Monte, Jirau and Santo Antônio.
Despite its contribution to electricity plant, which in 2016 hit the record
The privatisation is expected to go
generation, the hydropower sector, of generation over 100 TWh of annual
through in 2018.
which is mainly publicly owned, has production, is investing USD 500 million
struggled financially in recent years. in a 10-year upgrade plan.
The 2012 energy sector reforms
were not welcomed by many large
companies, especially state-owned
companies that had to accept
controversial terms seen as unprofitable.

208.6 MILLION 100,273 MW 401,060 GWh 64%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

060 | International Hydropower Association | Hydropower Status Report 2018


SOUTH AMERICA REGION
COLOMBIA

Colombia has the third largest installed The National Authority for The 2,400 MW Ituango hydropower
hydropower capacity in South America, Environmental Licenses (ANLA), project, in the Cauca River, will become
at 11,726 MW. The sector makes up under the Ministry of Environment the largest hydropower plant in
70 per cent of national installed energy and Sustainable Development, has Colombia when it is completed. With
capacity and, in 2017, produced 86 per published new terms of reference a consortium led by Empresas Públicas
cent of national electricity generation, for the preparation of environmental de Medellín (EPM), the project’s first
exceeding the 70 per cent average impact studies for the construction unit is expected to enter into operation
generation of the past four years with and operation of hydropower plants. by December 2018.
continuous droughts and above the To begin construction, hydropower
In total, 125 hydropower projects are
79 per cent recorded in 2012. projects over 100 MW need to obtain
in the pre-feasibility stage according
an environmental licence from the
Other renewable energies have minimal to the Energy and Mining Planning
Ministry of Environment and Sustainable
representation in Colombia’s energy Unit (UPME), under the Ministry of
Development, while those under 100
market. Gas is the second most used Energy and Mines. These would add
MW need to obtain a licence from the
resource, representing 9 per cent about 5,600 MW to existing installed
Regional Autonomous Corporation.
of generation in 2017. capacity. By comparison, over 300 solar
In January 2017, ANLA denied, for the and wind projects are also registered
Due to hydropower energy, Colombia
second time, the environmental licence representing 2,775 MW of additional
has positioned itself at the forefront of
to the 960 MW Cañafisto hydropower installed capacity.
clean and sustainable energy systems
project. Isagen is already undertaking
worldwide, and is advancing towards
feasibility studies for an alternative
its target to reduce greenhouse gases
project that would be a smaller version
emissions by 20 per cent by 2030.
of the original one with 380 MW
The World Economic Forum ranks of installed capacity.
Colombia 8th in the Global Energy
During 2017, Colombia increased
Architecture Performance Index (EAPI).
hydropower installed capacity by 100
The index measures countries’ ability
MW, with a focus on smaller capacity
to deliver secure, affordable and
hydropower projects.
sustainable energy. Colombia is the first
non-European country in the top ten. The 19.9-MW El Eden, 19.9-MW El
Molino and 10-MW San Matias projects
Following a ministerial meeting in
were commissioned in the first quarter
September 2017, Colombia’s Ministry
of the year, while Luzma 1 and Luzma
of Environment and Sustainable
2, each with 19.6 MW, entered into
Development and China’s Ministry
operation in late 2017.
of Water Resources announced a
Memorandum of Understanding
to cooperate and advance shared
interests in hydraulic infrastructures
and flood protection.

49.5 MILLION 11,726 MW 54,915 GWh 70%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

| 061
South America

PERU

Peru’s government has set a goal to In 2008, the government already operation in 2016. Most of the previous
become energy self-sufficient by 2040. established a decree to cover the year’s increase was accounted for by
The National Energy Policy 2010-2040 energy demand by incentivising two new commissioned major projects,
outlines its aim to achieve a diversified non-conventional renewable energy the 456 MW Chaglla plant and the 510
energy mix with a rising share of resources – so called RER – which MW Cerro del Águila plant.
renewables, contributing to lower includes solar, wind, biomass,
There now are 39 hydropower projects
carbon emissions. geothermal and hydropower below
– including the RER hydropower
20 MW of installed capacity.
In 2017, Peru’s installed capacity projects – in the pipeline which will
in hydropower climbed 200 MW By 2040, Peru aims to increase the together add an additional 2,900
to 5,385 MW. contribution of RER to the energy matrix MW by 2023. The largest of the 39
from 5 per cent to at least 20 per cent. hydropower projects are Veracruz and
The hydropower sector generates about
Chadin II, both on the Marañón river,
50 per cent of electricity for the National Recent years have seen four RER
at 635 MW and 600 MW respectively.
Energy Interconnected Grid (SEIN). Yet, auctions for the National Energy
the total hydropower potential capacity Interconnected Grid (SEIN) and one In August 2017 it was announced
is estimated at around 70,000 MW. for other areas not connected to the that the 456-MW Chaglla, owned by
Thermal energy leads way, providing SEIN. As a result of these auctions, Odebrecht, was purchased by a Chinese
around 9,500 MW of installed capacity, 22 hydropower plants are under consortium led by China Three Gorges
while wind and solar together provide construction (292.48 MW) and 23 are (CTG). The hydropower plant is CTG’s
only 3 per cent. already in operation (274 MW). In April first asset in Peru and the first plant to
2017, the Ministry cancelled a fifth apply the Hydropower Sustainability
The Amazon basin region holds 97.7
auction scheduled for 2018 because Assessment Protocol in the country.
per cent of Peru’s water resources where
several projects from previous auctions
about a quarter of the population lives. Large transmission lines are needed
were still being developed.
Access to electricity in urban areas is to connect hydropower plants to
close to 90 per cent, while in rural areas During 2017, the 19.9 MW Potrero plant electricity demand centres in the
it is around 78 per cent. entered into operation in April, followed dry Pacific coastal areas inhabited
by the 18.4 MW Marañón project in by much of the rest of the population.
The National Energy Plan 2014-2025
June and 17.5 MW Yarucaya project in The Ministry of Energy and Mining is
developed by the Ministry of Energy
August. By the end of2017, the 20 MW fostering, through the RER framework,
and Mining (MINEM) expects Peruvian
Renovandes H1 project, the 84 MW investment in rural electrification
energy demand to grow between 4.5 to
La Virgen project and the Angel II and through off-grid auctions which, it
6.5 per cent a year by 2025, which will
Angel III plants (19.9 MW each) are also is estimated, will benefit 3.4 million
be satisfied primarily by hydropower
expected to enter in operation. people by 2025.
and growth in other renewable
energies. The investment required to The 2017 increase in installed
cover the expected generation ranges hydropower capacity of 200 MW was a
from USD 6.7-7.3 billion. fifth of the 1,033 MW that entered into

32.4 MILLION 5,385 MW 33,400 GWh 35%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

062 | International Hydropower Association | Hydropower Status Report 2018


AFRICA INSTALLED CAPACITY
AFRICA

Laúca hydropower plant, Angola.


Credit: Odebrecht

| 063
AFRICA INSTALLED
CAPACITY
32
10
22

49
24

26
9
40
1
18
11 37 39 8 23
33 13 4
30 41
15

42 28 16
14
21
29
36

17

Key
19
1 Country rank
5 6
199 MW and below 12 7 25
200 MW to 1,999 MW

34
2,000 MW to 9,999 MW 20
2
31

064 | International Hydropower Association | Hydropower Status Report 2018


AFRICA INSTALLED CAPACITY
TOP SIX COUNTRIES BY INSTALLED HYDROPOWER CAPACITY (MW*)

1 2 3 4 5 6
Ethiopia South Africa Egypt Democratic Republic Angola Zambia
of the Congo
3,822 3,595 2,844 2,593 2,415 2,397

AFRICA CAPACITY BY COUNTRY*


Total installed capacity Total installed capacity
Rank Country (MW) Rank Country (MW)
1 Ethiopia 3,822 22 Algeria 269
2 South Africa 3,595 23 Congo 233
3 Egypt 2,844 24 Mali 181
4 Democratic Republic 2,593 25 Madagascar 164
of the Congo
5 Angola 2,415 26 Senegal 150
6 Zambia 2,397 27 Reunion 134
7 Mozambique 2,191 28 Equatorial Guinea 128
8 Nigeria 2,062 29 Rwanda 105
9 Sudan 1,923 30 Liberia 93
10 Morocco 1,770 31 Lesotho 72
11 Ghana 1,584 32 Tunisia 66
12 Zimbabwe 941 33 Sierra Leone 64
13 Côte d’Ivoire 879 34 Swaziland 60
14 Kenya 824 35 Mauritius 60
15 Cameroon 761 36 Burundi 55
16 Uganda 743 37 Togo 49
17 Tanzania 572 38 Mauritiana 49
18 Guinea 368 39 Benin 33
19 Malawi 364 40 Burkina Faso 32
20 Namibia 341 41 Central African Republic 19
21 Gabon 331 42 São Tomé and Príncipe 2

* including pumped storage

35
27

| 065
Africa

OVERVIEW

Despite its vast natural resources, medium term demand in the region hydropower projects and transmission
access to electricity across Africa is and, according to the International infrastructure, which will enable
limited and uneven, with only around Renewable Energy Agency (IRENA), the interconnection projects to have a
30 per cent of the population having cost of electricity from new hydropower transformative impact across the region.
access to electricity. While countries like projects remains the lowest among Major transmission interconnections
Egypt have total electricity coverage, renewable energy sources globally. under construction include the 3,800
in countries like Chad and South km Central African Interconnection
Several cities in Mozambique, Ethiopia
Sudan less than nine per cent of the Transmission Line Project which will
and Cameroon report that 100 per
population has access. add 4,000 MW in capacity, and the
cent of their electricity is generated
Mozambique-Malawi Transmission
In order to exit the poverty trap, by hydropower, according to the CDP
Interconnection Project for which
African governments are increasingly reporting initiative. Ten cities in the
the government of Mozambique has
turning to renewable resources to spur region, including Addis Ababa, Harare,
received financing from the World Bank.
development and improve livelihoods. Dar es Salaam and Nairobi generate
Large-scale hydropower projects in
Among these resources is hydropower, more than 70 per cent of their
Ethiopia are also driving investment in
of which only about seven per cent of electricity from renewable energy
new interconnections across the Eastern
the continent’s economically feasible of which hydropower provides more
Africa Power Pool.
potential has been developed. than 50 per cent.
In Angola, hydropower development
In 2017, 1,924 MW of hydropower Africa has five regional power pools
is considered a priority, as reflected
capacity was put into operation, with which act as specialised agencies for
in its energy security policy and the
total installed capacity now exceeding their respective Regional Economic
country’s overall 2025 strategy. In 2017,
35 GW. In several African countries – Community. Regional interconnections
five years after beginning construction
Democratic Republic of Congo, Namibia, across the continent would help
of its largest infrastructure project, the
Zambia, Ethiopia, Togo and Sudan – mitigate a lack of adequate installed
first two power generating units of the
hydropower accounts for over 90 per capacity, which is aggravated by severe
country’s 2,070 MW Laúca hydropower
cent of electricity production. droughts like the one experienced in
station were commissioned. The
2015. Hydropower could therefore
Hydropower presents an opportunity Cambambe dam on the Kwanza
have a major role in buffering against
for economic development and river raised its installed capacity to
fluctuations in production.
the achievement of the Sustainable 960 MW with the inauguration of a
Development Goals. Hydropower Governments are putting in efforts second power station and following
potential exceeds current and to increase investment both in a modernisation project. Together,

066 | International Hydropower Association | Hydropower Status Report 2018


AFRICA OVERVIEW
these projects increased the country’s In 2017, the 320 MW Upper Atbara and
installed hydropower capacity by 72 per Setit Dam project was commissioned.
cent from 2016 to 2017 and are part of Besides increasing the country´s
an effort to increase electrification to 60 installed capacity, the project will
per cent by 2025. provide storage and controlled supply
of water for over 300,000 hectares of
In Côte d’Ivoire, the government has
fertile land. Laúca hydropower plant, Angola.
developed a regulatory framework Credit: Odebrecht
for the power sector to encourage In Zimbabwe, the first unit of the
investment as it is working to double Kariba South extension project was
power generation by 2020, with commissioned in December 2017, with
on-grid capacity scheduled to reach 150 MW expected to come onto the
4,060 MW. The Soubré project located grid during 2018. The extension project
at Naoua Falls on the Sassandra river forms part of a series of initiatives
is the country’s largest hydropower by the Zimbabwe Electricity Supply
project at 275 MW, having been Authority to resolve a national power
commissioned in 2017. deficit estimated at approximately 60
per cent. Some 1,720 MW of potential
In Sudan, hydropower is the largest
capacity in the Zambezi river is still to
source of electricity accounting for
be developed.
almost 75 per cent of generation.

| 067
Africa

MOROCCO

Morocco, emboldened by its By 2020 the country aims to develop In 2017 ONEE announced construction
significant renewable energy 2,000 MW of solar power. With 3,500 of two new pumped storage stations
resources, was among the first km of coastline, Morocco has potential with a total capacity of 600 MW. The
countries in the Middle East and for the development of pumped first, the El Menzel II station, will be
North Africa to cut fossil fuel subsidies. storage projects which could be located in the upper Sebou, and the
It has significant potential to increase coupled with other renewable energy second, the Ifahsa station, will be built
hydropower storage capacity and facilities to provide a viable solution on the right bank of Oued Laou. These
reinforce its green energy production. to the intermittency of variable projects will each have an installed
renewables such as both solar and capacity of 300 MW. Ifasha is scheduled
The country’s total installed capacity
wind energy. to be completed by 2025.
is 8,262 MW of which 1,770 MW
is accounted for by hydropower. The government owned Office The completion of the Abdelmoumen
The government’s policy is to increase National de l’Electricité et de pumped storage project (350 MW)
renewable generation capacity to 42 l’Eau Potable (ONEE) is the main located about 7 km north-east of
per cent of the energy mix by 2030 – player in the power sector. ONEE Agadir will support the Aferer project
up from 19 per cent capacity in 2010. is implementing an environmental (464 MW). Abdelmoumen will become
and social management system operational in 2020 and will add 350
With energy demand expected to
(SMES) at the Al Wahada and Afourer MW of capacity to the country.
double by 2025, the government
hydropower plants. Moreover, the
plans to accelerate the pace of In addition, construction of the
Ministry of Energy in cooperation
reforms to enable public and private Khénifra hydropower plant (128 MW)
with the German government is
operators to develop 10,100 MW of has begun together with several small
undertaking a study to assess the
additional capacity by 2030, including hydropower plans: Bar Ouender (30
viability of seawater pumped storage.
1,330 MW of hydropower, with 550 MW) in Taounate Boutferda (18 MW)
MW to be developed by the private ONEE is the fourth largest operator in Azilal, Tillouguit aval (26 MW),
sector, and about 100,6 MW in small in the Spanish electricity market with Tillouguit amont (8 MW) and Tamejout
hydro. This will help the country reach the Morocco-Spain interconnection, (30 MW) in Benin Mellal.
2,000 MW of installed hydropower which has an exchange capacity of
capacity by 2020. 2,400 MW. Another interconnection
between Mauritania and Morocco is
also being assessed.

36.1 MILLION 1,770 MW 3,689 GWh 22%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

068 | International Hydropower Association | Hydropower Status Report 2018


AFRICA REGION
NIGERIA

Nigeria is bestowed with large rivers Nigeria has envisioned growing its The Ministry of Power and Ministry
and natural falls. The main water economy at a rate of 11 to 13 per cent of Water Resources have established
resources that provide rich hydropower in order to be among the 20 largest a partnership for the development
potential are the Niger and Benue rivers economies in the world by 2020. To of several existing hydropower plants,
as well as Lake Chad basin. With an meet this ambitious growth target, including the 30 MW Gurara 1, the
estimated 1,800 m3 per capita per year the government has hydropower 10 MW Tiga, 10 MW Oyan, the 8 MW
of renewable water resources available, development targets of 6,156 MW for Challawa and the 6 MW Ikere plants.
this is not a water poor country, yet it is 2020 and 12,801 MW for 2030. It has a In addition, the 700 MW Zungeru and
ranked as an economically water scarce target to reach 30 per cent renewable the 40 MW Kashimbila hydropower
country due to a lack of investment and energy by 2030 as well as to have 70 per plants are currently under construction.
management to meet demand. cent of the energy consumed produced
A consortium from China constructing
on-grid, compared to the current 74
The total installed capacity is 12,522 the 3,050 MW Mambilla plant began
per cent self-generated. The Energy
MW, not including off-grid generation, preparations after an agreement
Commission of Nigeria aims to reach
of which 2,062 MW is hydropower. between the Minister of Power, Works
20,000 MW of grid capacity by 2022.
The total exploitable potential of and Housing of Nigeria and the
hydropower is estimated at over 14,120 Since 2005, a privatisation programme consortium was signed last November.
MW, amounting to more than 50,800 has been underway to boost electricity Nigeria’s so-called ‘Three Gorges
GWh of electricity annually. The roughly demand and supply, leading to the Project’ will include four RCC gravity
85 per cent of hydropower yet to be Transmission System Provider of dams (Nya dam, Sumsum dam, Nghu
developed therefore offers solutions to Nigeria (TSP) being handed over dam and Api weir) with over 700 km of
address existing power shortages. to Manitoba Hydro International of transmission lines.
Canada under a three to five year
Nigeria’s 2015 National Renewable
management agreement.
Energy and Energy Efficiency Policy set
out the government’s priority to “fully The African Development Bank has
harness the hydropower potential in the been investing USD 100 million in
country, promoting private sector and hydropower plant maintenance, repairs
indigenous participation in hydropower and investment. As a result, in 2017 the
development” . This involves extending proportion of hydropower on the grid
electricity to rural and remote areas went up to 26 per cent from 15 per cent
and pursuing hydropower production in 2015. Under this programme, the 760
in an environmentally friendly and MW Kainji and 578 MW Jebba projects
sustainable manner. These goals are were rehabilitated.
aligned with the Sustainable Energy
for All (SE4ALL) initiative, of which
Nigeria was one of the first countries
in the world to embrace. Towards
this end, in 2016 a Memorandum
of Understanding was signed with
PowerChina International Group for the
overall planning of Nigerian irrigation
and hydropower resources.

194.1 MILLION 2,062 MW 7,310 GWh 16%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

| 069
Africa

UGANDA

Although Uganda is endowed Since the Bujagali hydropower station The government’s grid development
with energy resources distributed was completed by mid-2012, the plan set a target to increase hydropower
throughout the country including generation capacity – accounting for 34 generation mix from 78 per cent to
hydropower, biomass, solar, geothermal, per cent of the country’s electricity – has 90 per cent by 2030. The government
peat and fossil fuels, less than 15 per been sufficient to avoid load shedding. has continued to expand the power
cent of the population has access to In order to make electricity in Uganda transmission network to expand
electricity. Consumption of electricity more affordable, the government has a national electrification coverage as
is among the lowest in the world at grant with a five-year corporate income envisioned in the national development
215 kWh per capita per year, less than tax to break to Bujagali Energy Ltd to plan. During 2017 the government
half that of the Sub-Saharan African reduce electricity prices. Moreover, the completed construction of 167 km of
average of 552 kWh. Biomass is the International Finance Corporation (IFC) transmission lines, and a total of 948 km
most important source of energy for is helping refinance Bujagali to lower of transmission lines are to be finished
most of the population, accounting for the project’s tariff under the power by the end of 2018.
90 per cent. purchase agreement with Uganda
Uganda is building several new large
Electricity Transmission Company.
Uganda has a total installed capacity hydropower facilities, such as the 600
of 957.7 MW, including 743 MW for Extending electricity access nationwide MW Karuma and the 183 MW Isimba
hydropower. The main and base is a primary policy objective for Uganda. Falls plants, and has proposed the 600
electricity supply is generated from This includes increasing access to 30 per MW Ayago plant. The 600 MW Karuma
the Nile River, primarily from the 255 cent in 2020 and 80 per cent in 2040 plant construction is 70 per cent
MW Bujagali, the 200 MW Kiira and (a 6 per cent annual increase), with complete with construction completion
the 180 MW Nalubaale plants. In total, off-grid electricity playing only a minor targeted during the financial year
hydropower accounts for 78 per cent role. While this is expected to be mainly 2018/2019. Construction of the 183
of installed capacity, whereas thermal, low-carbon due to large hydropower MW Isimba project stands at 66 per
cogeneration and solar account for 14, resources, there is potential to achieve cent and the project is expected to be
10 and 1 per cent respectively. The total 100 per cent access cost-effectively by commissioned by August 2018.
energy power potential is estimated to 2040 with a greater emphasis on small-
Other hydropower projects currently
be 5,300 MW, including an estimated scale off-grid renewable solutions.
under development are the 83 MW
2,200 MW of hydropower, which can
To fast-track the development of on- Achwa project, the 44.7 MW Muzizi
potentially provide the country with
grid small renewable energy projects, project and the 5.4 MW Nyagak project.
sufficient capacity to meet future
Uganda took an early lead in East Africa On top of that, the GET-FiT portfolio
growth in energy demand.
in implementing the feed-in-tariff (FIT) is supporting 17 renewable power
system, adopting the Global Energy generation projects to generate about
Transfer Feed-in-Tariff (GET-FiT) Program 156.5 MW, where a total of 69.2 MW is
launched in 2013. The total planned expected by the end of 2018 from nine
installed capacity from the GET-FiT hydropower projects.
projects currently under construction
is 86 MW. Moreover, 6.5 MW Muvumbe
and 5 MW Siti I became operational in
March and May 2017 respectively.

42.1 MILLION 743 MW 3,330 GWh 78%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

070 | International Hydropower Association | Hydropower Status Report 2018


EUROPE REGION
EUROPE

Budarhals hydropower plant, Iceland.


Credit: Voith - Landsvirkjun

| 071
EUROPE INSTALLED CAPACITY

33

24

15
39
1
7
42

25
41
29
32 35
13 40 20

27 9
21 37
28
18 12
6 8 34
3 26
22
11
19
10 36
Key 38 31 17
4 16
Country rank 23 30
1
5 14 2
199 MW and below

200 MW to 1,999 MW

2,000 MW to 9,999 MW

10,000 MW to 19,999 MW

20,000 MW +

072 | International Hydropower Association | Hydropower Status Report 2018


EUROPE INSTALLED CAPACITY
TOP SIX COUNTRIES BY INSTALLED HYDROPOWER CAPACITY (MW*)

1 2 3 4 5 6
Norway Turkey France Italy Spain Switzerland
31,837 26,681 25,517 21,884 20,344 16,657

EUROPE CAPACITY BY COUNTRY*


Total installed capacity Total installed capacity
Rank Country (MW) Rank Country (MW)
1 Norway 31,837 22 Croatia 2,141
2 Turkey 26,681 23 Albania 2,020
3 France 25,517 24 Iceland 1,986
4 Italy 21,884 25 Latvia 1,576
5 Spain 20,334 26 Slovenia 1,479
6 Switzerland 16,657 27 Belgium 1,427
7 Sweden 16,466 28 Luxembourg 1,330
8 Austria 14,116 29 Lithuania 876
9 Germany 11,258 30 Macedonia 674
10 Portugal 7,343 31 Montenegro 658
11 Ukraine 6,785 32 Ireland 529
12 Romania 6,705 33 Greenland 90
13 United Kingdom 4,611 34 Moldova 76
14 Greece 3,396 35 Belarus 73
15 Finland 3,198 36 Kosovo 66
16 Bulgaria 3,129 37 Hungary 56
17 Serbia 2,835 38 Andorra 45
18 Slovakia 2,522 39 Faroe Islands 39
19 Bosnia and Herzegovina 2,504 40 Netherlands 37
20 Poland 2,351 41 Denmark 9
21 Czech Republic 2,212 42 Estonia 8

* including pumped storage

| 073
Europe

OVERVIEW

The European Union as well as many Hydropower has a long tradition in Albania, which relies almost entirely
non-EU countries including Switzerland, Europe, with many countries adding on hydropower for its power
Norway and Turkey have brought significant hydropower capacity supply, brought the 74.6 MW Fangu
forward climate and energy policies following the Second World War in the hydropower station online in 2017.
over recent years aimed at establishing 1960s and 1970s. Many of these projects The project, owned and constructed
affordable, secure and sustainable are now in need for rehabilitation by Turkish company Ayen Energy,
clean energy systems. In order to and modernisation. In many mature represents the largest privately-owned
meet ambitious climate mitigation hydropower markets, capacity additions power project in the country and
commitments, European countries are expected to come from upgrades, fourth largest hydropower station in
will need to rapidly decarbonise their smaller-scale projects or with retrofitting the country. A net importer of energy,
power sectors and increase the share of of existing infrastructure. Albanian legislators are working to
renewable energy. Toward this end, in create a liberalised energy market to
Most of the remaining potential for
early 2018 the EU parliament voted to stimulate both power trading with
greenfield hydropower development
increase its renewable energy goal for neighbouring countries, but also to
is in eastern Europe, especially in
2040 from 27 per cent to 35 per cent. spur further development of renewable
the Western Balkan region, where
energies. Full liberalisation is expected
The wider European region, including the EU has taken a strong interest in
by 2025.
non-EU countries, added 2.3 GW of developing the region’s energy sectors
installed hydropower capacity in 2017, by creating frameworks to foster In Serbia, state-owned Elektrovprivreda
bringing the total installed hydropower coordinated investment and strengthen Srbije (EPS) announced modernisation
capacity in the region to 249 GW. coherence and local synergies to ensure plans to increase capacity at the Iron
Despite drought and low rainfall positive impacts. Preliminary findings Gate 2 from 270 MW to 320 MW.
throughout most of the continent, released in 2017 on a Hydropower The Danube river project is located
hydropower generated an estimated Master Plan for the region highlighted between Serbia and Romania and is
600 TWh of clean electricity in 2017. the need for transboundary river shared between the two countries, with
It remains the single largest source approaches that include shared Romania’s Iron Gates power station
of renewable electricity in Europe. hydropower potential, but also focused having completed modernisation a
As wind and solar power continue on the shared water services such as number of years ago with a capacity of
their growth throughout the region, flood mitigation for all stakeholders if 321 MW. EPS completed modernisation
future energy systems are poised to planned holistically. efforts at the Iron Gate 1 project in 2017,
continue to benefit from and rely upon adding 68 MW to what was already
hydropower’s grid services and active the largest hydropower station on the
and passive storage capabilities. Danube River. Combined, the Iron Gates
projects have a total installed capacity
of 2,908 MW.
074 | International Hydropower Association | Hydropower Status Report 2018
EUROPE OVERVIEW
Romania added the 12 MW Bretea The Frades II project is one of the
project located on the Strei river to largest variable-speed pumped storage
its electricity portfolio, while also projects in Europe. Operational since
announcing plans for the refurbishment April 2017, the two variable-speed
and modernisation of a number of pump-turbines allow for the quicker
ageing hydropower projects, including response times, adding additional
Calimanesti (78 MW), Slatina (13 MW) flexibility while also allowing for
and Mariselu (221 MW) projects. frequency control while pumping.
Floating photovoltaics at
The project was added to the Cavado- the Alto Rabagão pumped
Turkey experienced its most severe
Rabagao cascade system. The pumped storage reservoir, Portugal
drought in 44 years, according to
storage projects are forming the (Credit: EDP)
the Ministry of Forestry and Water
backbone of Portugal’s transition to
Management. But hydropower
rely on wind, solar and hydropower for
generation contracted only by 12.7
its power. Positive results are already
per cent in 2017 to 58.5 TWh thanks
to be seen, with Portugal producing
to effective use of stored water across
more than 100 per cent of the country’s
the nation’s fleet of dams, while also
electricity consumption for the month
meeting public water and irrigation
of March 2018, with 55 per cent
needs. The country expanded its
coming from hydropower.
hydropower capacity by 0.6 GW in 2017,
bringing the current total to 27.3 GW. Switzerland completed the second Across Europe, 12 cities report that at
Significant additions during the year stage at the Hogrin-Leman pumped least 70 per cent of their electricity is
included Kiğı (140 MW), Kargı (97 MW), storage project. The 240 MW addition generated by hydropower, according
Darıca 2 first unit (74 MW), Doğançay doubled the project’s total installed to data published by the CDP world
(62 MW), and many other projects. capacity to 480 MW. The project, now renewable cities initiative (2018). These
the second largest pumped storage include Oslo in Norway (98 per cent),
As generation from wind and solar
project in the country, is in accordance Basel in Switzerland (89 per cent) and
continue to grow, the value of energy
with the country’s 2050 Energy Reykjavík in Iceland (70 per cent).
storage to provide flexibility to
Strategy and will help stabilise both
power grids is becoming increasingly
the Swiss and European grids.
recognised. Approximately 1.3 GW of
pumped storage was added in 2017.
Portugal led the way commissioning
the 780 MW Frades 2 and 270 MW Foz
Tua projects.

| 075
Europe

AUSTRIA

Austria’s alpine topography, numerous are run-of-river projects and 8,4 GW potential totals 12.8 TWh. According
rivers and high precipitation present the are pumped storage projects. More to the Austrian Electricity Strategy,
country with significant water resources. than 3,000 hydropower stations are Empowering Austria, 6 to 8 TWh
Hydropower has played an instrumental connected to the national grid, with could be developed up to 2030.
role in the development of the energy a further 2,000 very small projects used
The country’s electricity sector
sector, with the first commercial for on-site consumption off the grid.
is characterised by strong
hydroelectric generators powering
Ninety-five per cent of the country’s interconnections with neighbouring
lights as early as 1884.
grid-connected plants have an installed countries, especially Germany,
Hydropower blossomed after the First capacity of less than 10 MW, delivering Switzerland, the Czech Republic
World War due to growing electricity about 13.8 percent of total hydropower and Slovenia. Since 2002, Germany
demand and a severe shortage of coal generation. The remainder, some 158 and Austria have shared a bidding
resulting from the loss of large coal fields projects with capacities greater than zone, meaning that interconnector
when the Austro-Hungarian Empire 10 MW, provide more than 90 per cent capacity for cross-border trade has not
was dissolved. The development of of installed capacity and deliver 86 per been limited or explicitly scheduled.
hydropower helped to reduce severe cent of total hydropower generation. However, in November 2016 it was
unemployment and improved local decided by the European Agency for
Hydropower today accounts for about
air quality, so much so that politicians the Cooperation of Energy Regulators
56 per cent of total installed power
referred to hydropower affectionately that the market would split on
generating capacity, down from around
as “white coal”. 1 October 2018 because of over-supply
61 per cent a decade earlier. The slight
of German wind and insufficient
Hydropower experienced an another decline can be attributed to a four-fold
transmission capacity within
boom after the annexation of Austria increase in wind and solar capacity over
Germany causing surpluses to flow
to Germany in 1938, when a number of the same time period. Nevertheless,
into the Czech Republic and Poland,
projects were started, only for many to Austria’s 2017 Power Grid Development
destabilising their grids.
stall during the Second World War. The Plan explicitly identifies hydropower
sector experienced another revitalisation as an enabling pillar to support the With strong political will to increase
following the injection of funds from projected increase of wind and solar. renewable generation and to decrease
the European Recovery Program in the import dependency, the government
In addition to supporting the integration
1950s and continued as the economy plans to expand hydropower generation
of variable renewables, hydropower
strengthened in the 1960s and 1970s. with new greenfield projects and
development is driven by increasing
expansion and retrofitting projects.
Large projects came under scrutiny electricity demand and the will to
The 10.4 MW (13.2 MW when pumping)
during the 1980s due to environmental increase energy security to reduce
Rellswerk pumped storage project
and social concerns, and consequently energy and fuel imports. Forecasts have
was put into operation in 2017, adding
more recent development has focused shown Austrian electricity demand
additional balancing capacity to the
mainly on small-scale applications, with increasing by 14-20 TWh by 2030.
system on the upper regions of the Ill
a few exceptions, notably pumped
With an estimated technical and River in Vorarlberg. Further pumped
storage projects.
economic potential of 56.1 TWh, Austria storage projects include the 130 MW
Austria added at least 15 MW in has exploited some 75 per cent of its Tauernmoos project planned for
hydropower installed capacity in 2017, potential. According to a 2008 Pöyry commissioning in 2025, and the
taking its total installed hydropower study, the remaining economically 360 MW Obervermuntwerk II project,
capacity to 14.1 GW, of which 5.7 GW and environmentally feasible set for commissioning in 2018.

8.7 MILLION 14,130 MW* 38,540 GWh 56%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
*IHA estimate CAPACITY

076 | International Hydropower Association | Hydropower Status Report 2018


EUROPE REGION
LITHUANIA

Lithuania has one of the highest levels of met approximately 77 per cent of environmental legislation estimates a
energy poverty in the European Union. electricity demand, and 58 per cent of its much lower potential of 117 GWh per
As a result, increasing energy security, power generation was exported. year, or roughly 6 per cent of the gross
efficiency and use of renewables are theoretical potential.
The future development of Lithuania’s
seen as central pillars for the country’s
hydropower and other renewable In 2017, the EU stated it will work with
energy transition.
resources is driven by the 2012 Lithuania and the other Baltic states
Hydropower, including production National Energy Independence to link their electricity grids to the EU
from pumped storage projects, Strategy, in which the government via Poland by 2025. This is to diversify
accounts for around 20 per cent of committed to achieving a 23 per cent their energy trade partners, having
total domestic power generation. The renewable energy share of final energy previously relied on BRELL system and
country’s 100 hydropower plants have consumption by 2020. While the Russian imports. This diversification
a total installed capacity of 1,028 MW, majority of the increase in renewables builds upon the 700 MW HVDC NordBalt
amounting to roughly 28 per cent of is expected to come from biomass and interconnection with Sweden which was
total installed capacity. wind, non-pumped storage hydropower completed in 2016.
should grow by 10 per cent, to a total of
Generation from hydropower reached Lietuvos Energia assessed the
140 MW by 2020.
record levels in 2017, increasing by possibility of installing a fifth
almost a quarter over 2016. This The majority of Lithuania’s hydropower pump-turbine at the Kuronis pumped
high level was partly due to good capacity comes from just two projects: storage plant. The new pump turbine
hydrological flow conditions, but also the 900 MW Kruonis pumped storage would use variable speed technology,
through improved market exploitation project and the 101 MW Kaunas project. allowing for better balancing of wind
and active engagement in intraday The two projects work in conjunction, power resources. The assessment
trading by state owned energy company with the Kaunas reservoir acting as the found that arbitrage opportunities
Lietuvos Energia. lower reservoir for the Kruonis project. for revenue generation are expected
With the exception of Balskų (2.9 MW), to decrease as interconnections
Despite realising independence
Angirių (1.3 MW), Kavarsko (1.5 MW), to western Europe are established.
from the USSR in 1990, Lithuania’s
and Antalieptės (2.6 MW), all other
energy system still relies heavily on its Despite a reduced business case, the
hydropower projects are less than 1 MW.
neighbours to the east. The electricity report found that the addition of the
grid was developed during the Despite estimated potential hydropower fifth unit would be the optimal solution
Soviet era and the power grid is still resources totalling 1.9 TWh per year to adding reliability and security of
synchronised to the BRELL (Belarus, – representing five times what is the Baltic electricity system in the
Russia, Estonia, Latvia and Lithuania) currently produced on average per year shortest possible time. Hydropower’s
power grid, which is part of the wider – developers have been struggling to reserve capacity services were in
integrated and unified power systems find economically feasible sites that are evidence in Lithuania when the
of former soviet states. also compliant with strict environmental NordBalt interconnector experienced
legislation. An amendment to national an unexpected outage due to a cable
The closure of the 2,600 MW Ignalina
water legislation in 2004 prohibited malfunction in July 2017. The Kruonis
nuclear power plant in 2009 put
dam construction for over 170 rivers, pumped storage facility was able
additional strain on the energy system
including all of Lithuania’s major water to quickly respond to the power
and increased dependency on gas and
courses. An assessment of hydropower deficit to keep the country’s lights on.
power imports. Before closure, Ignalina
potential which is compliant with

2.87 MILLION 1,028 MW 1,165 GWh 28%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

| 077
Europe

UNITED KINGDOM

The United Kingdom has been consumption from renewable sources are being developed across the UK.
a pioneer in hydropower development, by 2020, compared to only 1.5 per cent Innovations in small hydropower
using water for electricity generation in 2005. The plan estimates turbines have allowed for some
since 1879 when the first 4.5 KW non-pumped storage hydropower hydropower to be applied at
hydroelectric generator was put into reaching 2,130 MW by 2020. sites with very low heads and low
operation to provide electricity for flows by utilising the Bernoulli
Despite an estimated 2.4 GW of viable
a single incandescent lamp. principle, including the River Mill
hydropower potential in the UK,
in Cambridgeshire, England. Other
Today the UK has a total hydropower hydropower expansion is likely
notable community-led projects include
installed capacity of over 4,600 MW, to be limited to small-scale applications
the 100 KW Bethesda scheme in Wales,
including 2,744 MW of pumped (up to 5 MW), with the exception
which allows residents to purchase
storage. The vast majority of installed of pumped storage projects.
generated power for half the average
capacity is located in the wet and
The UK currently hosts four pumped price of UK electricity, and reduces
mountainous regions of Wales and
storage projects in Scotland and Wales. losses due to transmission.
northwest Scotland.
The largest such project, Dinorwig in
While there are currently no new
In 2017, installed capacity additions north Wales, was commissioned in 1983
pumped projects under construction,
totalled 32 MW. Notable greenfield with a capacity of 1,728 MW. Since the
the UK government granted electricity
projects commissioned in Scotland 1960s, only one non-pumped storage
generation licences to three proposed
included Allt Garbh (1.5 MW), project greater than 20 MW has been
projects: in Wales, the 99 MW Glyn
Ardtalnaig (2 MW), Grudie (2 MW) commissioned: the 100 MW Glendoe
Rhonwy project in abandoned mines
and the Nevis Range (1.1 MW). project in 2009.
and, in Scotland, the 600 MW Coire Glas
Over the past 30 years, the proportion While these pumped storage projects and 400 MW Glenmuckloch projects.
of electricity generated by hydropower were initially developed to provide
The UK’s current interconnection
has remained around 2 per cent of total peaking and balancing support for
capacity rests approximately at
power generation. Hydropower has coal and nuclear, the changing energy
5 per cent of total installed capacity,
however increasingly been called upon generation landscape is shifting how
about half of the recommended
to support the development of the UK’s pumped storage is utilised. The addition
10 per cent benchmark proposed by
variable renewable sector by providing of wind and gas, replacing coal, means
the European Commission. A number
peaking, balancing and other grid that many pumped storage assets in
of new interconnection projects are
services, especially as wind generation the UK are no longer operating on
currently underway, most notably
has increased over ten-fold since 2007. daily cycles, pumping at night and
the North Sea Link, a 1,400 MW
generating during peak daytime hours.
The UK’s energy transition has its HVDC interconnection with Norway,
Rather, pumped storage assets have
foundations in the 2008 Climate which takes advantage of Norway’s
substantially increased ramping and
Change Act, which is a legally binding hydropower while providing an off-
sometimes cycling up to 60 times a day.
commitment by the UK government to taker for excess UK wind production.
Since 2007, generation from pumped
reduce total GHG emissions by at least
storage has increased on average by 20
80 per cent of 1990 levels by 2050. The
per cent compared to a decade earlier.
2009 National Renewable Energy Action
Plan sets an additional target for the Small-scale hydropower projects,
UK to achieve 15 per cent of its energy including community-led projects,

65.6 MILLION 4,611 MW 5,186 GWh 11.5%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

078 | International Hydropower Association | Hydropower Status Report 2018


SOUTH AND CENTRAL ASIA REGION
SOUTH AND
CENTRAL ASIA

The Toktogul reservoir in central


Kyrgyzstan. Credit: David Trilling

| 079
SOUTH AND CENTRAL ASIA
INSTALLED CAPACITY

10
6

7
14 15
22
13
5
19
8
3
21 20
17
Key 12

1 Country rank 16
4
18
199 MW and below

200 MW to 1,999 MW
1

2,000 MW to 9,999 MW

10,000 MW to 19,999 MW

11

20,000 MW +

080 | International Hydropower Association | Hydropower Status Report 2018


SOUTH AND CENTRAL ASIA INSTALLED CAPACITY
TOP SIX COUNTRIES BY INSTALLED HYDROPOWER CAPACITY (MW*)

1 2 3 4 5 6
India Russia Iran Pakistan Tajikistan Georgia
49,382 48,450 11,811 7,477 5,190 3,161

SOUTH AND CENTRAL ASIA CAPACITY BY COUNTRY*


Total installed capacity
Rank Country (MW)
1 India 49,382
2 Russia 48,450
3 Iran 11,811
4 Pakistan 7,477
5 Tajikistan 5,190
6 Georgia 3,161
7 Kyrgyzstan 3,091
8 Iraq 2,753
9 Kazakhstan 2,554
10 Uzebekistan 1,731
11 Sri Lanka 1,720
12 Bhutan 1,615
13 Syria 1,505
14 Armenia 1,249
15 Azerbaijan 1,122
16 Nepal 968
17 Afghanistan 461
18 Bangladesh 230
19 Lebanon 221
20 Jordan 12
21 Israel 7
22 Turkmenistan 1

* including pumped storage

| 081
South and Central Asia

OVERVIEW

Rising energy demand in Central In Russia, hydropower capacity grew Pakistan’s new Patrind (147 MW)
and South Asia means investment by 364 MW in 2017. The majority of the hydropower project connects the
in power infrastructure is high on increase came from inauguration of rivers Kunhar and Jhelum with a
the political agenda. In 2017 overall the Nizhne-Bureyskaya (320 MW) plant 2.2 km headrace tunnel. The plant
hydropower capacity increased by in the far east of the country, where incorporates three Francis turbines
3.7 GW across the region. most ongoing construction projects and a sediment bypass tunnel.
are located. Hydropower generation Developed as an independent
India accounted for over half of new
was stable relative to 2016, and overall power project (IPP) by interests in
installs including the Teesta III project
contributed 17 per cent of total power the Republic of Korea, the project
(1,200 MW) in the Himalayan north-
supply to the Unified Energy System received certified emissions reduction
eastern state of Sikkim. Other major
(UES) of Russia. Increased water credits under the Clean Development
projects that became operational
inflows were seen in hydropower Mechanism. Other small hydropower
include Sainj (100 MW), Tashiding
reservoirs along the Volga-Kama developments include the Marala (7.6
(97 MW) and Tuiral (60 MW). The
cascade, but in other regions, such MW) project now under completion.
government’s 2016 Third National
as the far east, levels declined.
Electricity Plan (NEP3) has set an In Georgia, hydropower is attracting
ambitious commitment to deliver over Iran continues to invest in hydropower renewed interest as the government
50 per cent capacity from non-fossil fuel both at home and abroad. Last year streamlines its power sector. Last year
sources by 2027. This foresees a central saw the inauguration of the Rudbar saw a programme to modernise the
role for hydropower, both for generation Lorestan dam comprising a 450 MW Enguri dam (1,300 MW) gain funding,
and grid balancing, targeting over power house and 228 metre reservoir, Dariali (108 MW) and Khelvachauri 1 (47
20 GW of new capacity. Nonetheless, and the first generating unit at Darian. MW) plants were added to the country’s
nearly half the country’s large-scale The Iranian Water and Power Resources 3 GW of capacity. Other construction
construction projects have faced delays Development Company (IWPCO) also projects with foreign investment
or other challenges. To address this, the has over 4 GW in the pipeline including include Nenskra (280 MW) and Khudoni
Central Electricity Authority’s 50,000 Seimareh (480 MW), Khersan 3 (400 (702 MW), while schemes at an earlier
MW Hydro Electric Initiative aims to fast- MW), and Chamsir (110 MW). Beyond its stage include the Georgian Energy
track priority projects, while the Ministry domestic sector, the Iranian Bureau of Development Fund’s Namakhvani
of Power is expected to provide further Administration for Overseas Projects is project (433 MW).
support for stalled projects. expanding Iran’s hydropower interests
and services at the international level.

082 | International Hydropower Association | Hydropower Status Report 2018


SOUTHA ND CENTRAL ASIA OVERVIEW
Nurek reservoir in Tajikistan.
Credit: David Trilling

Elsewhere in the South Caucasus, planned in Tashkent for example. In 2017. Power imports from India have,
the last two years have seen small Kazakhstan, hydropower generated a however, been increasing to meet rising
hydropower projects commissioned total of 11.2 TWh in 2017, slightly higher demand and domestic supply shortages
in Azerbaijan with 15 MW more under than the previous year and making have been severe. Hence the Nepalese
construction, and the government up 11 per cent of the country’s total government together with the Nepal
of Armenia has approved the power production. The 25 MW Turgusun Electric Authority and international
Shnokh (76 MW) project. Georgia project has also received backing. partners have been working to develop
also has plans to expand its existing multiple projects, such as the Upper
In Afghanistan, modernisation of
grid interconnections with border Tamakosi run-of-river hydropower plant
the Kajaka hydropower facility (50
states which will offer new export (456 MW) near the border with Tibet and
MW) in Helmand concluded with US
opportunities for regional Arun III (900 MW) has commenced with
support in 2017. After installation of
hydropower developers. support from India. The Upper Tamakosi
turbine upgrades and a digital control
project is nearing completion, but along
Tajikistan and Kyrgyzstan both system, full handover to the Afghan
with existing facilities suffered setbacks
produced over 90 per cent of their national power utility, Da Afghanistan
due to a severe earthquake in 2015.
annual electricity from hydropower in Breshna Sherkat, was completed. Other
2017. With abundant water resources proposed projects include the Baghdara Bhutan continues to advance its
and over 8 GW existing capacity, dam (210 MW) on the Kabul river basin. hydropower capacity as part of the
neighbouring states also benefit from national growth strategy as it pushes
The CASA 1000 project advanced
a seasonal surplus generated from the Mangdecchu project (730 MW) in
in 2017, aiming to interconnect
these two countries. At the end of 2017, Trongsa towards completion. Other
Kyrgyzstan, Tajikistan, Afghanistan
water levels at the Toktogul reservoir projects under construction include
and Pakistan through high voltage
were 12 per cent higher compared to Punatshangchhu I and II (totalling
transmission lines. The scheme will allow
the previous year. The government of over 2,220 MW) and Kholongchhu
surplus hydropower transfers from north
Uzbekistan is also signalling support (600 MW), all of which have faced
to south, alleviating power shortages
for the 3,600 MW Rogun dam which overruns. A trilateral deal between
while also generating revenues for
is under construction in Tajikistan, the governments of Bhutan, India and
the exporting countries. Tenders
signifying a major step forward. Further Bangladesh is also on the horizon,
were successfully submitted by HVDC
hydropower investments include supporting the Dorjilung hydropower
equipment suppliers, and construction
modernisation of the Nurek and project (1,125 MW) in Bhutan and
of line sections is underway.
Qairokkum in Tajikistan, and the Naryn export to India and Bangladesh.
cascade in Kyrgyzstan. Nepal has almost 1 GW hydropower
In the Middle East, the Dubai
capacity, which typically accounts for
In neighbouring Uzbekistan, a national Electricity and Water Authority (DEWA)
over 90 per cent of annual generation.
investment plan was announced in is progressing the Hatta pumped
Recent additions have been the Upper
2017 to develop its ageing hydropower hydropower storage project (250 MW),
Madi (25 MW) project and the first unit
infrastructure. Modernisation of Charvak the first of its kind in the Arabian Gulf,
of the Upper Marsyangdi A (50 MW)
was completed in 2016 raising its awarding the consultancy contract
plant at the end of 2016, plus a number
capacity to over 600 MW, with other in 2017 covering design and
of smaller projects commissioned in
refurbishments and new projects technical studies.

| 083
South and Central Asia

INDIA

With a population of well over a In the last quarter of 2017, the Central Many current hydropower projects
billion people and a fast growing Electricity Authority (CEA) reported 11.5 have been slow going with delays
economy, India’s electricity demand GW capacity was under construction, due to complex planning procedures,
is expected to double over the next just over 25 per cent by the private prolonged land acquisition and
decade. India currently has 197 sector. The National Hydroelectric Power resettlement, a lack of enabling
hydropower plants above 25 MW, plus Corporation (NHPC) is building the infrastructure including transmission,
nine pumped storage stations and 2,000 MW Lower Subansiri project in insufficient market scope and the
ranks fifth in the world for potential Arunachal Pradesh and Assam, which availability of long term financing.
hydropower capacity. has faced delays, the 800 MW Parbatti
Significant reforms made in recent years
II project in Himachal Pradesh, and
Hydropower’s share in the electricity include the 2008 Hydro Power Policy
the completed 330 MW Kishanganga
mix has, however, been decreasing encouraging private sector participation
project. The government is also
over the years, accounting for and the 2016 National Tariff Policy
investing in the north western state of
approximately 10 per cent of on frequency response markets and
Jammu and Kashmir through the joint
generation in 2017, with the majority extended certainty of power purchase
venture Chenab Valley Power Projects
(80 per cent) coming from thermal. agreements. The CEA and Ministry
Limited, with 1,000 MW Pakal Dul and
of Power have also been actively
The year 2017 nonetheless marked 624 MW Kiru now at an advanced
monitoring and fast-tracking priority
a turning point in new clean power stage of ordering civil construction
schemes, notably the 50,000 MW Hydro
installs, at 15.7 GW, including almost 2 and equipment supply.
Electric Initiative.
GW new hydropower, well exceeding
India has over 90 GW of pumped
new thermal capacity additions. Most Policy proposals mooted by observers
storage potential, with 63 sites
added hydropower capacity came include new ancillary service markets,
identified and recognised in national
from commissioning the 1,200 MW attributing hydropower full renewable
energy policies for their valuable
Teesta III hydropower plant in the status along with separate purchase
grid services. The CEA’s priority is
north eastern state of Sikkim. obligation benefits, and more
to commission pumping capability
integrated planning. Draft policies
Projects entering service in 2017 were at three out of the nine installed
under preparation are expected to
100 MW Sainj, 97 MW Tashiding, 96 pumped storage schemes, Kadana I &
support stalled hydropower projects
MW Dickchu, 120 MW Pulichintala II, Nagarjuna Sagar and Sardar Sarovar.
and private sector uptake and could
(first three units adding 90 MW), and The 1,000 MW Tehri facility now under
include measures to make hydropower
60 MW Tuiral among other projects. construction is due for service by 2019.
tariffs more competitive.
India also has a renovation and
India’s transmission capacity has grown
modernisation programme for ageing
by 40 per cent since 2014 and has been
hydropower assets, with 21 schemes
operating as a single national grid since
completed in March 2017 accruing
2012-13 when the five independent
benefits of 549 MW.
regional grids were integrated. With
new high voltage transmission corridors
such as the North East Agra Line,
India’s cross-country power flows are
improving and already greatly reducing
power shortages.

1.36 BILLION 49,382 MW 135,539 GWh 14.8%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

084 | International Hydropower Association | Hydropower Status Report 2018


SOUTH AND CENTRAL ASIA REGION
KYRGYZSTAN

Rising in the Tien Shien mountains In service since 1975, the complete Construction of the 405 km Datka-
at the border with China, the Naryn rehabilitation of the Toktogul plant is Kemin 500 KV transmission line and
river flows through Kyrgyzstan feeding a priority given it generates around 50 renovations to power supply systems
the huge Toktogul reservoir to the per cent of the country’s power and also around the capital, Bishkek, will help to
West and a series of downstream provides multi-year storage capacity mitigate network losses.
hydropower plants. and regulation services to the regional
The government has undertaken steps
grid. The programme of works will
The country has a great number of toward reforming the power sector
upgrade equipment and plant capacity
large and medium sized rivers offering over the last three years, including
at the 1,200 MW Toktogul hydropower
significant hydropower potential, the establishment of an Independent
plant to 1,440 MW, and also support
estimated at 140-170 TWh, of which Regulator, a National Energy Holding
modernisation of all five main dams
only 10 per cent has been exploited. Company, and a State Committee on
along the Naryn cascade (800 MW
The energy mix is highly dependent on Industry, Energy and Subsoil Use, as
Kurpsai, 450 MW Tashkumyr, 240
hydropower, which produced 93 per well as a new settlement and revenue
MW Shamaldy-Sai, and 180 MW Uch
of total electricity generated in 2017, mechanism. Nonetheless, Kyrgyzstan’s
Kurgan). The next phase will be carried
and output is sensitive to seasonal and electricity tariffs are still heavily
out between October and December
annual weather variations. At the end of subsidised and this makes cost recovery
2018, and wider international assistance
the year, the water volume at Toktogul a major challenge for power producers.
is also planned to improve governance
sat at almost 18.75 billion cubic While measures implemented under
and operational management.
metres, which was higher than 2016 the 2014-2017 Medium-Term Tariff
by 12% and enabled power exports to Near-term objectives for new capacity Policy (MTTP) have made some
neighbouring countries. include construction of the remaining improvements, renewed efforts will
two 120 MW units at Kambarata-2. be needed to realise investments in
While there have been no major
Long-standing plans to develop the hydropower according to a recent
additions to hydropower capacity since
1,860 MW Kambarata-1 HPP and the World Bank report.
2010, residential electricity demand has
Verkhne-Naryn HPP cascade (over 200
risen by almost 60 per cent between Opportunities include the planned
MW), offering an additional 5 TWh
2007 and 2016. Five out of Kyrgyzstan’s 2018-2021 MTTP and building on good
of generation, had been repeatedly
seven main hydropower plants are progress already made in attracting
stalled due to lack of funds. However,
over 30 years old, and power supply external financing. Calls for broader
in late 2017 the Uzbekistan and
reliability and quality of service is at risk. policy actions include strengthening
Kyrgyzstan governments came to
Investments in the sector are needed institutional governance, enforcing
an agreement to cooperate in the
to keep pace with a growing economy. regulations, and outreach programs
construction of Kambarata.
This is particularly the case in winter for vulnerable energy consumers.
when generation becomes constrained Other proposed developments
and demand rises, putting pressure on include the Kazarman and Suusamyr-
the grid system. The winter supply gap Kokomeren hydropower plant cascades
is expected to increase to 883 GWh in which together would add over 2,465
2030 unless investments in capacity and MW. Recent small hydropower projects
network reinforcement materialise. have also been implemented, including
Tehrmertinsky (3.0 MW) commissioned
in 2017 in the Keminsky district.

6.2 MILLION 3,091 MW 13.456 GWh 82%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

| 085
South and Central Asia

SRI LANKA

Hydropower is well developed in up at the end of the year finishing higher pumped storage project which could
Sri Lanka and will continue to play compared to December 2016. help balance wind and solar power.
an important role in the island’s energy In addition, 16 new small hydropower
Over the coming years, water
grid. In 2017, hydropower contributed plants totalling 27 MW were brought
management plans and dam
around 20 per cent of total electricity online in 2017, supporting a total of
rehabilitation will need to consider the
generation, with over 70 per cent 353 MW of small hydropower projects
potential for heavier rainfall and flood
coming from thermal sources and already commissioned as independent
situations due to a changing climate.
a small portion from other renewables. power projects (IPPs).
Operating as a multi-purpose system,
The state-owned utility, Ceylon Recent sector reforms have included
the Mahaweli cascade was mostly
Electricity Board (CEB), operates most the National Energy Policy and
developed in the 1980s and totals
of the country’s hydropower stations Energy Sector Development Plan for
just over 800 MW including the
and is planning new investments in its a Knowledge-Based Economy (2015-
country’s three largest hydropower
Long Term Generation Expansion Plan 2025). Policies focus on promoting
plants. A recent addition is the new
(2018-2037). To meet rising electricity the island’s indigenous energy
Moragahakanda reservoir, comprising
demand, growing at around 6 per cent resources, developing competitive
a 25 MW plant with its first generating
annually and expected to reach almost pricing, improving the quality of
unit now under commissioning.
17 TWh by 2020, the CEB is aiming power supply (now regulated by
The 120 MW Uma Oya project is also
to increase overall power capacity from the Public Utilities Commission of
under construction, as a trans-basin
4 GW currently to almost 7 GW by 2025. Sri Lanka), and notably rehabilitating
project planned for 2020.
In addition to hydropower, this includes outdated hydropower plants.
ramping up solar and wind capacity, The 360 MW Laxapana complex on
Sri Lanka is moving away from
alongside added thermal plants. the Kelani river-basin was developed
feed-in tariffs to competitive bidding
between 1950 and 1975. Now due
As a member of the Climate Vulnerable for renewables, which will impact the
for modernisation, works at the
Forum, an international partnership returns expected by project investors.
Polpitiya, New and Old Laxapana and
of countries, Sri Lanka has pledged Hydropower plants developed by
Wimalasurendra stations are expected
to achieve carbon neutrality by 2050, independent power producers in 1996
to increase efficiency. The 35 MW
demonstrating the country’s longer and after are also either at or nearing
run-of-river Broadlands project is
term ambitions. expiry of their 20 year power purchase
currently under construction, and will
agreements. Applicable tariff and
Hydropower output has been impacted be the first hydropower plant developed
ownership arrangements are yet to be
by variability in monsoon patterns, under the Carbon Development
established with relevant authorities
which has significantly increased over Mechanism. Ground and tunnelling
to ensure continuity of operations.
recent decades due to climate change. issues have caused delays and
Observers have made calls for further
Water use for domestic and irrigation completion is expected by 2020.
reforms, including outreach efforts for
purposes also takes precedence over
Other projects on the horizon include national and international funding and
hydropower affecting availability. At the
Thalpitigala (15 MW), Moragolla (30 the establishment of ancillary markets
beginning of 2017, reservoir storage
MW), Seethawaka (20 MW), Gin Ganga to reward balancing services.
recordings across six major dams were
(20 MW) and a potential 600 MW
below the five previous years, but picked

21 MILLION 1,720 MW 2,785 GWh 42.5%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

086 | International Hydropower Association | Hydropower Status Report 2018


EAST ASIA AND PACIFIC REGION
EAST ASIA
AND PACIFIC

Baihetan hydropower project


under construction. Credit: China
Three Gorges

| 087
EAST ASIA AND PACIFIC
INSTALLED CAPACITY

20

9
1 2
5

14 11

12
10

15 13
3

Key
Country rank
16
1 8

199 MW and below

200 MW to 1,999 MW

2,000 MW to 9,999 MW 4

10,000 MW to 19,999 MW

20,000 MW +

088 | International Hydropower Association | Hydropower Status Report 2018


EAST ASIA AND PACIFIC INSTALLED CAPACITY
TOP SIX COUNTRIES BY INSTALLED HYDROPOWER CAPACITY (MW*)

1 2 3 4 5 6
China Japan Vietnam Australia South Korea Malaysia
341,190 49,905 16,679 8,790 6,489 6,094

EAST ASIA AND PACIFIC CAPACITY BY COUNTRY*

Rank Country Total installed capacity Rank Country Total installed capacity
1 China 341,190 13 Philippines 4,312
2 Japan 49,905 14 Myanmar 3,140
3 Vietnam 16,679 15 Cambodia 1,367
4 Australia 8,790 16 Papua New Guinea 234
5 South Korea 6,489 17 Fiji 125
6 Malaysia 6,094 18 New Caledonia 78
7 New Zealand 5,346 19 French Polynesia 47
8 Indonesia 5,314 20 Mongolia 23
9 North Korea 5,000 21 Samoa 12
10 Laos 4,984
11 Chinese Taipei 4,691
12 Thailand 4,510

* including pumped storage

21

17
19
18

| 089
East Asia and Pacific

OVERVIEW

Once again led by China, the East In Cambodia, two units of the 400 The Indonesian government remains
Asia and Pacific region recorded the MW Lower Sesan II project were put committed to its ambition of
largest share of added capacity of all into operation representing 100 quadrupling its hydropower capacity
six regions in 2017 with 9.78 GW. China MW of capacity. The project will be to 20 GW by 2025 with the first
alone accounts for nearly half of the Cambodia’s largest ever hydropower Indonesian project being assessed
world’s added capacity with 9.12 GW, project when completed. Being under the Hydropower Sustainability
including 1.8 GW of pumped storage. developed by a joint venture between Assessment Protocol in December
Excluding China, over 650 MW was Chinese, Cambodian and Vietnamese last year. The Protocol was applied
added in the region. companies, the final six units are to the proposed Peolisika project
expected to be completed in 2018. in southeast Sulawesi and was
The Greater Mekong region recorded
accompanied by capacity building
much of the growth in hydropower Laos continues to expand its generating
training to support the development
outside China. This growth was led by capacity with an increased emphasis on
of future projects across the country.
Vietnam, with its 260 MW Trung Son regional cooperation and sustainability.
project becoming fully operational in Over 50 hydropower projects are Further projects currently under
2017; the USD 412 million project in under development across the country, development include Upper Cioskan
Quan Hoa district was largely financed representing 8,000 MW of added (1,040 MW), Matenggeng (900 MW),
by the World Bank, making it the first capacity. Several projects totalling 166 Asahan III (174 MW) and Pembangkin
hydropower plant in the country to MW were commissioned in 2017 and (150 MW).
have received financing from the the government is looking to further
In North Korea, as much as 70 per
institution.In addition, the expanded invest in transmission lines to support
cent of electricity is generated by
Thac Mo plant connected to the grid its goal of becoming the major energy
hydropower. China is helping to
having increased its capacity from exporter of Southeast Asia. Laos already
increase generating capacity by
150 MW to 225 MW, while the 38 MW exports electricity to China, Vietnam
building two joint-venture projects on
Thuan Hoa project was commissioned and Thailand and is in negotiations with
the Yalu River, which acts as a common
on the Mien River along the Vietnam- Cambodia and Myanmar.
border between the two countries. The
China border.
China-Korea Hydropower Company
is responsible for the development
of the projects, Wangjianglou and
Chanchuan, which are expected to be
operational in 2019.

090 | International Hydropower Association | Hydropower Status Report 2018


EAST ASIA AND PACIFIC OVERVIEW
Australia saw a flurry of hydropower The project would greatly reduce the
sector activity in 2017 with the country’s dependence on imported
government announcing plans diesel fuel which has meant it suffers
to expand the 4,100 MW Snowy from one of the highest electricity tariffs
Mountains Scheme. Known as Snowy in the world.
Xiluodu hydropower project.
2.0, the pumped storage project Credit: China Three Gorges
Finally, the Asian Development Bank
involves linking two large dams and
(ADB) and the Potsdam Institute for
would act as a giant 2 GW battery. The
Climate Impact Research released a
state-owned Snowy Hydro Limited is
report in 2017 titled ‘A Region at Risk:
seeking financing for the project in 2018
The Human Dimensions of Climate
and they hope it will be generating
Change in Asia and the Pacific’. The
electricity in 2024. With the support
report highlighted the potential impacts
of the Australian Renewable Energy
of climate change for agriculture,
Agency, Hydro Tasmania’s ‘Battery of the
fisheries, security and health, among
Nation’ initiative is also advancing with
other sectors. It argued for the rapid
preliminary studies identifying over 4
decarbonisation of the Asian economy
GW of potential pumped storage across
combined with appropriate adaptation
the state. Further pumped storage
measures as the ADB pledged to scale
projects are also being developed in
up climate financing to USD 6 billion by
Queensland and South Australia.
2020 – up from USD 4.5 billion in 2017.
Elsewhere in the Pacific, the proposed
20 MW Tina River project in the
Solomon Islands received a boost with
the Green Climate Fund announcing it
would provide USD 86 million towards
its development in the form of a low-
interest loan and grant contribution.

| 091
East Asia and Pacific

CHINA

As China pivots to renewable energy China Three Gorges Corporation (CTG) In December 2017, the government
to reduce its greenhouse emissions announced in August 2017 that the announced that the first phase of
and position itself as a major energy 16 GW Baihetan plant commenced its long awaited emissions trading
exporter, hydropower continues to construction. Situated on the lower scheme (ETS) would focus on the
be the foundation of their energy reaches of the Jinsha River along the power sector, covering roughly
transition. In 2017, the country border between the Sichuan and 3.5 billion tonnes of CO2 – almost
added 9.12 GW of installed capacity Yunnan provinces, once complete double the size of the European
bringing its total to 341 GW, having in 2023 Baihetan will be the second Union ETS. The scheme is expected
also contributed to nearly 20 per cent largest in the world in terms of installed to be up and running in 2019 but,
of the total electricity generated, far capacity behind CTG’s 22.5 GW Three as the government is yet to publish
outstripping wind (5 per cent) and solar Gorges plant. the scheme’s targets, it remains
(2 per cent). unclear what price signal it will send
Pumped hydropower storage is playing
to the sector and how it will impact
Since the turn of the century, China’s an increasingly important role in China’s
hydropower as a low-carbon source
development of its hydropower electricity market. It is seen as a key
of electricity.
resources has been nothing short of priority of the government in order
remarkable. The country has more to support the increasing penetration China is emerging as a leader in
than quadrupled its installed capacity of both intermittent wind and solar. green finance as a means to reach its
and accounted for over half of global Installed capacity is set to reach at ambitious climate and energy goals.
hydropower growth, with much least 40 GW by 2020 from its current With green bond issuances over USD 37
of the growth taking place in the 28.49 GW, and with 60 GW either under billion in 2017, this market is expected
country’s southwest. construction or in the planning stages, to be a major source of finance for
the National Energy Administration hydropower into the future, particularly
While development has slowed since its
expects pumped hydropower capacity as internationally recognised eligibility
most recent peak in 2014 when over 30
to total 90 GW by 2025. standards for green bonds are
GW was commissioned, average annual
developed and gain acceptance.
growth in installed capacity is expected In 2017, 1.8 GW of pumped storage was
to remain steady at between 3.5 and commissioned including Liyang (1,500
4 per cent to 2020 in order to achieve MW) and Shenzhen (300 MW, first
the government’s 13th Five-Year Plan unit), while the State Grid Corporation
target of 380 GW. Notable projects of China announced construction of a
commissioned in 2017 included further six pumped storage projects.
Changheba (2,600 MW), Houziyan Spread throughout the country, these
(1,700 MW) and Miaowei (700 MW). projects have a combined installed
capacity of 8.4 GW and are expected to
be fully operational in 2026.

1.4 BILLION 341,190 MW 1,194,500 GWh 19.2%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

092 | International Hydropower Association | Hydropower Status Report 2018


EAST ASIA AND PACIFIC REGION
PAPUA NEW GUINEA

Due to its mountainous terrain and high Hydropower accounts for approximately The Edevu project was launched in
rainfall in many parts of the country, 40 per cent of Papua New Guinea’s February 2017 by PNG Power and is
Papua New Guinea has abundant, installed capacity, with plants operating being constructed by the Chinese
although largely untapped, hydropower in each of the country’s three main company PNG Hydro Development Ltd,
resources. No detailed studies of power grids: Port Moresby, Ramu and with commissioning expected in 2020.
hydropower potential have ever been the Gazelle Peninsula. The remainder PNG Hydro Development Ltd will also
completed although an estimate is supplied by a mixture of natural gas, construct the Edevu-Moitaka 132 kV
commonly cited is a technical potential geothermal and diesel-fired plants, transmission line to transport electricity
of 15,000 MW. many of which serve rural communities. from the Edevu plant, and eventually
from the Naoro-Brown plant to the
Given the relatively small population The largest hydropower projects under
Central Province.
size, low access to electricity, active development include Naoro-
commercial and technical challenges of Brown (80 MW), Ramu 2 (240 MW) and There are also several rehabilitation
hydropower, Papua New Guinea today Edevu (50 MW). Detailed preparatory works being supported by the Asian
has an installed capacity of less than 250 work is underway on Naoro-Brown, Development Bank (ADB). These include
MW. However this is likely to increase located northeast of the capital. PNG the Rouna I (2.5 MW) and Sirinumu
over the coming decade with several Power appointed transaction advisers plants (1.6 MW) which are part of the
projects under development. Multiconsult and King & Spalding Port Moresby Power Grid Development
in 2016 with financial support from Project. Further rehabilitation works
Despite many years of economic
the World Bank. Given the size of the under the Town Electrification
growth, less than 20 per cent of the
project and the need for connecting Investment Programme will see both
country’s population is connected
infrastructure, multiple government the Yonki Toe dam (18 MW) and the
to the power grid, which is owned
agencies were involved in the Warangoi (10 MW) plants increase their
and operated by the national utility
transaction structuring process which is generation and extend their operating
company, PNG Power Ltd. The
now complete. The full environmental life by up to 25 years.
government is working closely with
and social impact study is due in late
the private sector and international In addition, the ADB is aiding the
2018 after which PNG Power will
partners to scale up household access development of two 3 MW run-of-river
tender the project to private investors
having set a goal of 70 per cent by projects (Divune and Ramazon) with
and engineering, procurement and
2030. Hydropower development will be the aim of both significantly increasing
construction partners.
critical to not only improving household electrification rates and supplanting
electricity access, affordability and Ramu 2 is slated to be developed diesel generation in small rural centres.
grid reliability but also in achieving under a Public-Private Partnership
Finally, to support the sustainable
the government’s 2050 vision of a model with Chinese firms, Shenzen
development of the hydropower
decarbonised power supply. Energy and Sinohydro, but
sector and given the unique cultural
construction has been delayed due
and ecological diversity of Papua New
to question marks over demand as
Guinea, the World Bank is funding a
much of the power was intended to be
study to assess how best to enable
consumed by a new mine yet to secure
the long-term sharing of benefits
necessary investment.
from hydropower projects among
impacted communities.

7.4 MILLION 234 MW 799 GWh 40%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

| 093
East Asia and Pacific

PHILIPPINES

As one of the world’s fastest growing The share of renewables on the grid is While much of the hydropower
economies, having recorded GDP likely to remain more or less constant developed over the past decade has
growth of 7 per cent in 2017, the to 2040 (30-35 per cent) as the plan been relatively small-scale run-of-
Philippines is seeking to rapidly includes an ambition to expand the river projects aided by FiTs, there are
expand its power generating installed capacity of renewables to at a number of large projects under
capacity while minimising costs to least 20,000 MW from its current 7,079 development including SNAP’s 350
consumers, particularly its rising MW. Hydropower is expected to make MW Alimit project. Situated in Ifugao
manufacturing industry. up the lion’s share of this growth in province, it comprises three plants
renewables with the Department of including a 240 MW pumped storage
The country’s hydropower sector has
Energy having most recently approved facility, with a final investment decision
experienced limited capacity growth
and awarded over 450 projects expected to be announced in the first
in recent years but still accounts for
totalling 13.5 GW. half of 2018.
18 per cent of total installed capacity,
and there are significant projects In 2017, the 8.5 MW run-of-river Maris A further large project under
under development. Canal plant was commissioned, which development is the 500 MW Wawa
was developed by SN Aboitiz Power- pumped storage project in Rizal
The Philippine government is juggling
Magat Inc (SNAP-Magat), a joint venture province. In July last year, the Philippine
with the energy trilemma of balancing
of the locally based AboitizPower and developer Olympia Violago Water
energy security, affordability and
the Norwegian SN Power AS. Located in & Power signed an agreement with
sustainability. Over the past fifteen
Ambatali village within the province of PowerChina for design, procurement
years it has introduced several initiatives
Isabella, the USD 47 million project took and construction. Expected to cost USD
including Feed-in Tariffs (FiTs) to
two years to complete and in addition 1 billion, it will greatly contribute to the
support the growth of renewables, but
to bolstering the grid, will improve country’s renewable energy ambitions
its electricity mix is still dominated by
irrigation facilities for the surrounding with commissioning planned for 2022.
fossil fuels namely coal (35% of installed
communities. Maris is SNAP-Magat’s
capacity), oil (18%) and gas (15%). Coal The government is seeking
first completed project since its
is expected to remain the largest single Official Development Assistance
acquisition of the 380 MW Magot
source for the foreseeable future with (ODA) finance from China for the
project back in 2007.
500 MW added to the grid last year, as rehabilitation of the state-owned 983
it is still considered to be the cheapest AboitizPower, through its wholly owned MW Agus-Pulangi cascade project
option in many provinces. subsidiary Hedcor Bukidnon, is also which is currently operating at only
set to commence operations on the 69 60 per cent of its capacity due to
The development and trajectory of
MW Manolo Fortich cascade project in ageing infrastructure. The works
the country’s power sector to 2040
2018. Located in Bukidnon province, it would cost up to USD 1 billion and
is guided by the ‘Philippine Energy
includes two run-of-river plants: 43.4 once completed would extend its
Plan’ which was published in 2017.
MW Manolo Fortich 1 and 25.4 MW service life by an additional 30 years
The plan outlines that the country’s
Manolo Fortich 2. while also increasing total capacity
installed capacity will need to increase
by an average of 10 per cent for
by some 40 GW to over 60 GW to meet
each of the six powerhouses. The
increasing demand.
government has also expressed a
desire to privatise the project once
the rehabilitation is completed.

103.5 MILLION 4,312 MW 10,199 GWh 18%


POPULATION INSTALLED HYDROPOWER HYDROPOWER
HYDROPOWER GENERATION SHARE OF ELECTRIC
CAPACITY POWER INSTALLED
CAPACITY

094 | International Hydropower Association | Hydropower Status Report 2018


EAST ASIA AND PACIFIC REGION

With a 2,400 MW capacity, the Guangzhou


pumped storage plant in China is one of the
largest in the world. Credit: Voith.

| 095
About IHA

Advancing sustainable hydropower


The International Hydropower Association
(IHA) is a non-profit membership organisation
committed to advancing sustainable hydropower.

Established in 1995 under the Sustainability Knowledge building


auspices of UNESCO, IHA’s
IHA is a champion of international IHA’s knowledge building
membership today includes more
good practices and continuous programmes increase awareness
than 100 organisations as well
improvement. We support project of hydropower’s value to clean
individual members.
sustainability assessments and energy systems and sustainable
Our mission is to advance sustainable training as the management body development, promoting
hydropower by building and sharing for the Hydropower Sustainability collaborative, adaptive approaches
knowledge on its role in renewable Assessment Protocol, an to river basin development and
energy systems, responsible internationally recognised framework regional interconnections.
freshwater management and climate for assessing performance against
We provide practical advice and
change solutions. environmental, social, technical and
support to members on technical
economic criteria.
We achieve this through monitoring issues covering operations and
the sector, advancing strategies maintenance, modernisation and
that strengthen performance, and sediment management, and have
building an open, innovative and developed tools for dealing with
trusted platform for knowledge. new challenges such as assessing
reservoir carbon emissions and
building climate resilience.
Recognising that investment
in hydropower is essential if the
world is to meet global climate
targets, we are also working
with partners to agree
eligibility criteria for green
bond financing, and promoting
a new preparation facility model
to support sustainable
hydropower development.

Find out more:


www.hydropower.org

096 | International Hydropower Association | Hydropower Status Report 2018


ABOUT IHA
activity and strategy report

The 78 MW Banja hydropower


2017 - 2018

plant, part of the Devoll project


in Albania which will have a total
installed capacity of 278 MW when
completed in 2019.
Credit: Statkraft

advancing
sustainable
hydropower
activity and strategy report

2017 - 2018

13/04/2018 12:19

Download our 2017-18 Activity and Strategy Report:


hydropower.org/activity2018

| 097
World hydropower

INSTALLED CAPACITY
AND GENERATION 2017
AFRICA SOUTH AND CENTRAL ASIA
Country Total installed Pumped Generation Country Total installed Pumped Generation
capacity including storage (TWh) capacity including storage (TWh)
pumped storage (MW) (MW) pumped storage (MW) (MW)
Algeria 269 - 0.31 Afghanistan 461 - 1.37
Angola 2,415 - 6.35 Armenia 1,249 - 2.30
Benin 33 - 0.13 Azerbaijan 1,122 - 1.87
Botswana - - - Bahrain - - -
Burkina Faso 32 - 0.10 Bangladesh 230 - 1.07
Burundi 55 - 0.10 Bhutan 1,615 - 7.78
Cote dIvoire 879 - 2.62 Georgia 3,161 - 9.21
Cameroon 761 - 4.60 India 49,382 4,786 135.54
Cape Verde - - - Iran 11,811 1,040 16.44
Central African Republic 18 - 0.15 Iraq 2,753 240 4.58
Chad - - - Israel 7 - 0.03
Comoros - - - Jordan 12 - 0.06
Congo 233 - 1.06 Kazakhstan 2,554 - 11.20
Democratic Republic of 2,593 - 8.63 Kuwait - - -
the Congo Kyrgyzstan 3,091 - 13.46
Djibouti - - - Lebanon 221 - 0.58
Egypt 2,844 - 13.41 Nepal 968 - 3.14
Equatorial Guinea 128 - 0.12 Oman - - -
Eritrea - - - Pakistan 7,477 - 34.06
Ethiopia 3,822 - 8.37 Qatar - - -
Gabon 331 - 1.54 Russia 48,450 1,385 178.90
Gambia - - - Saudi Arabia 0.000 - -
Ghana 1,584 - 8.88 Sri Lanka 1,719 - 2.79
Guinea 368 - 1.36 Syria 1,505 - 3.03
Guinea-bissau - - - Tajikistan 5,190 - 16.37
Kenya 824 - 2.87 Turkmenistan 1 - 0.00
Lesotho 72 - 0.49 United Arab Emirates - - -
Liberia 93 - 0.49 Uzbekistan 1,731 - 11.98
Libya - - - TOTAL 144,710 7,451 456
Madagascar 164 - 0.69
Malawi 364 - 1.84
Maldives - - -
Mali 181 - 0.90
Mauritania
Mauritius
49
60
-
-
0.24
0.09
EAST ASIA AND PACIFIC
Morocco 1,770 464 3.69
Mozambique 2,191 - 13.70
Namibia 341 - 1.44 Country Total installed Pumped Generation
Niger - - - capacity including storage (TWh)
Nigeria 2,062 - 7.31 pumped storage (MW) (MW)
Reunion 134 - 0.50 American Samoa - - -
Rwanda 105 - 0.37 Australia 8790 1,340 13.65
Sao Tome And Principe 2 - 0.01 Brunei - - -
Senegal 150 - 0.60 Cambodia 1,367 - 2.40
Seychelles - - - China 341,190 28,490 1,194.50
Sierra Leone 64 - 0.15 Chinese Taipei 4,691 2,602 6.04
Somalia - - - Cook Islands - - -
South Africa 3,595 2,912 5.67 Fiji 125 - 0.47
South Sudan - - - French Polynesia 47 - 0.22
Sudan 1,923 - 6.74 Guam - - -
Swaziland 60 - 0.26 Hong Kong - - -
Tanzania 572 - 2.26 Indonesia 5,314 - 17.28
Togo 49 - 0.19 Japan 49,905 27,637 92.55
Tunisia 66 - 0.07 Kiribati - - -
Uganda 743 - 3.33 Laos 4,984 - 22.70
Western Sahara - - - Macau - - -
Yemen - - - Malaysia 6,094 - 17.62
Zambia 2,397 - 13.65 Marshall Islands - - -
Zimbabwe 941 - 5.77 Micronesia, - - -
TOTAL 35,339 3,376 131 Federated States Of
Mongolia 23 - 0.05
Myanmar 3,140 - 9.35
Nauru - - -
New Caledonia 78 - 0.32
New Zealand 5,346 - 24.97
Niue - - -
North Korea 5,000 - 11.83
Papua New Guinea 234 - 0.80
Philippines 4,312 685 10.20
Samoa 12 - 0.03
Singapore - - -
Solomon Islands - - -
South Korea 6,489 4,700 6.99
Thailand 4,510 1,000 8.69
Timor-leste - - -
Tonga - - -
Tuvalu - - -
Vanuatu - - -
Vietnam 16,679 - 59.90
TOTAL 468,331 66,454 1,501

098 | International Hydropower Association | Hydropower Status Report 2018


WORLD HYDROPOWER
EUROPE NORTH AMERICA
Country Total installed Pumped Generation Country Total installed Pumped Generation
capacity including storage (TWh) capacity including storage (TWh)
pumped storage (MW) (MW) pumped storage (MW) (MW)
Albania 2,020 - 4.53 Anguilla - - -
Andorra 45 - 0.12 Antigua and Barbuda - - -
Austria 14,130 5,212 38.05 Aruba - - -
Belarus 97 - 0.30 Bahamas - - -
Belgium 1,427 1,307 0.12 Barbados - - -
Bosnia and Herzegovina 2,504 420 3.40 Belize 53 - 0.24
Bulgaria 3,129 864 3.03 Bermuda - - -
Croatia 2,141 293 5.43 Canada 80,985 177 403.35
Cyprus - - - Cayman Islands - - -
Czech Republic 2,212 1,147 3.01 Costa Rica 2,123 - 8.74
Denmark 9 - 0.02 Cuba 64 - 0.10
Estonia 8 - 0.03 Dominica 6 - 0.03
Faroe Islands 39 - 0.11 Dominican Republic 543 - 1.33
Finland 3,236 - 14.63 El Salvador 472 - 1.74
France 25,517 6,985 53.24 Grenada - - -
Germany 11,258 6,806 22.68 Guadeloupe 10 - 0.02
Gibraltar - - - Guatemala 1,156 - 5.06
Greece 3,396 699 4.04 Haiti 61 - 0.15
Greenland 90 - 0.40 Honduras 558 - 2.59
Hungary 56 - 0.23 Jamaica 23 - 0.12
Iceland 1,986 - 13.82 Martinique - - -
Ireland 529 292 0.89 Mexico 12,125 - 29.83
Italy 21,884 7,555 37.53 Montserrat - - -
Kosovo 68 - 0.18 Nicaragua 123 - 0.43
Latvia 1,576 - 4.35 Panama 1,777 - 6.52
Liechtenstein - - - Puerto Rico 100 - 0.04
Lithuania 876 760 1.17 Saint Bartholemy - - -
Luxembourg 1,330 1,296 1.40 Saint Kitts And Nevis - - -
Macedonia 674 - 1.09 Saint Lucia - - -
Malta - - - Saint Pierre - -
Moldova 76 - 0.37 And Miquelon -
Monaco - - - Saint Vincent 7 -
Montenegro 658 - 1.03 And The Grenadines 0.03
Netherlands 37 - 0.06 Trinidad And Tobago - - -
Norway 31,837 1,392 143.00 Turks And Caicos Islands - - -
Poland 2,353 1,782 2.64 United States 102,867 22,809 322.39
Portugal 7,343 2,613 7.61 Virgin Islands, British - - -
Romania 6,717 92 14.54 Virgin Islands, U.S. - - -
San Marino - - - TOTAL 203,053 22,986 783
Serbia 2,903 614 9.53
Slovakia 2,522 916 4.71
Slovenia 1,479 180 4.08
Spain 20,343 3,329 20.57
Sweden 16,466 99 63.86
Switzerland 16,922 3,057 36.67
Turkey
Ukraine
27,273
6,785
-
1,315
59.19
12.01 WORLD
United Kingdom 4,611 2,744 5.17
TOTAL 248,564 51,769 599
Total installed Pumped Generation
capacity including storage (TWh)
pumped storage (MW) (MW)
TOTAL 1,266,955 153,041 4,185
SOUTH AMERICA
Country Total installed Pumped Generation
capacity including storage (TWh)
pumped storage (MW) (MW)
Argentina 11,242 974 41.28
Bolivia 603 - 2.66
Brazil 100,273 30 401.06
Chile 7271 - 21.67
Colombia 11,726 - 54.92
Ecuador 4,409 - 20.09
French Guiana 119 - 0.73
Guyana 1 - 0.00
Paraguay 8,810 - 59.29
Peru 5,385 - 33.40
Suriname 189 - 1.22
Uruguay 1,538 - 7.28
Venezuela 15,393 - 72.09
TOTAL 166,959 1,004 716

| 099
Itaipu Binacional, Brazil and Paraguay.
Credit: Alexandre Marchetti

100 | International Hydropower Association | Hydropower Status Report 2018


| 101
www.hydropower.org

The International Hydropower


Association (IHA) is a non-profit
organisation that works with a vibrant
network of members and partners
active in more than 100 countries.

Our mission is to advance sustainable


hydropower by building and sharing
knowledge on its role in renewable
energy systems, responsible
freshwater management and climate
change solutions.

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