Hydropower, also known as hydroelectric power, utilizes the energy of falling or flowing water to produce electricity. Hydropower is a renewable and reliable source of energy that offers negligible carbon emissions. Hydropower plants make use of the kinetic energy of flowing water to turn turbines and generators to produce electricity. Advantages of hydropower include low operation and maintenance costs, long operational lifespan of plants over 50-100 years, and price stability of power produced. The ever-growing concern of global warming and climate change has increased the shift towards renewable and clean sources of energy such as hydropower across the world.
Key Takeaways
Key players operating in the Hydropower market are MHI Vestas, Siemens AG, General Electric, ABB, Ltd., EEW Group, Nexans, and A2SEA A/S. Hydropower market offers growth opportunities through innovations in turbine technology, increasing investments in small hydropower projects, and development of pumped storage hydropower plants. Furthermore, countries across Asia Pacific, Latin America, and Africa regions are expanding their hydropower infrastructure to fulfill the rising energy demand as well as replace aging hydropower assets to support long term sustainable development.
Market Drivers
Increased shift towards renewable energy sources is a major driver complimenting the growth of the Hydropower Market Growth. As the implementation of stricter environmental regulations to curb carbon emissions becomes widespread, many countries are prioritizing the addition of clean power in their energy mix through large investments in hydropower. This is expected to significantly drive the hydropower market during the forecast period.
PEST Analysis
Political: The hydropower market sees new policies and regulations in various countries promoting sustainable power generation. Governments offer subsidies and tax exemptions for hydropower projects.
Economic: With rising energy demand and fossil fuel costs, hydropower provides economical and clean power. The Hydropower Market Analysis benefits from declining technology costs.
Social: As environmental concerns rise, hydropower has widespread social acceptance as a renewable. Local communities also gain employment from project implementation and operations.
Technological: Adoption of innovative turbine designs, digitization and IoT solutions boosts efficiency and plant maintenance. Advances in micro-hydropower expand the market reach.
The hydropower market sees major value concentrations in Asia Pacific and North America regions. Asia Pacific accounts for over 50% of global hydropower capacity led by China, India, Japan and South East Asian countries. Abundant river systems, high investment levels and growing power needs drive the region. North America is another prominent regional market with leading positions of the US and Canada in installed hydropower base as well as ongoing capacity additions.
The fastest growing regional market for hydropower is expected to be Africa. Several African countries see hydropower as a strategic option to meet rising electricity demand and expand access in a sustainable manner. Projects under development across East, West and Southern Africa will significantly raise the continent's hydropower capacity over the forecast period. Initiatives like the Grand Ethiopian Renaissance Dam exemplify the potential. Investments accelerate as international organizations support hydro projects in Africa.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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