What's Happening?
The International Hydropower Association (IHA) reports that global hydropower capacity reached 1,469 GW by the end of 2025, with pumped storage capacity surpassing 200 GW. This growth highlights hydropower's evolving role in the global energy transition,
as countries increasingly rely on flexible renewable generation and long-duration energy storage to enhance energy security and decarbonization efforts. The report emphasizes the strategic importance of hydropower in providing grid stability and supporting the integration of variable renewables like solar and wind power.
Why It's Important?
The expansion of pumped storage and hydropower is crucial for meeting the rising global demand for renewable energy and ensuring grid reliability. As countries face geopolitical tensions and the challenges of integrating variable renewables, hydropower offers a reliable solution for energy storage and system resilience. This development supports the global shift towards sustainable energy sources, reducing reliance on fossil fuels and contributing to climate change mitigation efforts. The increased focus on hydropower also presents opportunities for economic growth and job creation in the renewable energy sector.
What's Next?
The IHA predicts that global pumped storage capacity will double in the next 15 years, with potential for further growth if supportive policies are implemented. Governments are expected to prioritize hydropower in their energy strategies, recognizing its role in enhancing energy security and supporting the transition to a low-carbon economy. The ongoing development of hydropower projects worldwide, particularly in China and India, will continue to drive capacity expansion and innovation in the sector.
