A new report from the International Hydropower Association shows strong global momentum for hydropower development,led by a sharp rise in pumped storage hydropower(PSH).
According to the 2025 World Hydropower Outlook,24.6GW of new hydropower capacity was added globally in 2024,while hydropower generation climbed by 10%to 4,578TWh in 2024.
This demonstrates a strong rebound from drought-affected lows the previous year.
Global capacity additions included 8.4GW of PSH,a 5%increase in global PSH capacity to 189GW,signaling an accelerating trend.Annual PSH additions have nearly doubled in the past two years,raising the five-year average to 6GW per year,up from 2–4GW across the previous two decades.
By the end of 2024,the global hydropower development pipeline exceeded 1,075GW(an increase of approximately 8%),including approximately 600GW of pumped storage hydropower and 475GW of conventional projects.
This growth reflects both the rising momentum behind electricity storage and the enduring importance of conventional hydropower in building low-carbon energy systems.
Based on typical project timelines,most of the under-construction capacity is expected to be commissioned by 2030.
Eddie Rich,IHA CEO,added:“As the renewable energy market continues to grow,pumped storage hydropower is playing an increasingly vital role in ensuring system flexibility and stability.At the same time,for many regions,increased conventional hydropower remains the priority to achieving global climate and development goals.In the face of growing climate volatility,we must build not just clean energy systems,but resilient ones.Water,wind and sun gets the job done!”
Despite positive trends,the sector faces a potential shortfall of 60–70GW by 2030 against the International Renewable Energy Agency’s hydropower target in its“tripling renewables”scenario.Accelerated project approvals and financing will be critical to closing the gap.
Malcolm Turnbull,IHA president,commented on the report findings:“Encouragingly,this year’s World Hydropower Outlook shows that global new capacity is accelerating after several years of stagnation…But markets alone won’t deliver what is needed.Continued momentum will require bold policy action,including reforms to reward hydropower’s multiple benefits,and faster permitting.The only resource we lack is time.”
In terms of regional development,China remained at the forefront,adding 14.4GW of hydropower capacity in 2024.More than half of this capacity was pumped storage,putting the country on track to exceed its 120GW PSH target by 2030.
Europe saw a landmark year for renewables in 2024,with frequent monthly peaks where hydropower,wind and solar led the EU power mix.Driven by exceptional rainfall,hydropower output surged to a decade-high of 680TWh,underscoring its critical role alongside wind and solar.
Also,the report demonstrates that a clear business case for pumped storage is emerging,supported by a European project pipeline of 52.9GW in development.Of this,3GW is under construction and 6.7GW has already received regulatory approval.
Africa more than doubled its 2023 capacity additions with over 4.5GW brought online in 2024.In Africa,hydropower already delivers 20%of total electricity generation across the continent,and there is huge scope for further development,with just 11%of the over 600GW of the continent’s potential currently harnessed.A new wave of projects,many led by private developers,is beginning to emerge.
Despite a modest total capacity addition of 306MW in 2024,hydropower provides approximately 45%of South America’s electricity demand.According to the IHA,there is an urgent need for more hydropower investment due to surging electricity demand from mega-ports,data centers and industry.
