Flagship 2025 World 鶹Ƶ Outlook Out Now
Global hydropower generation rebounds in 2024 and pumped storage development surges
鶹Ƶ generation recovered strongly in 2024, rising by 10% to 4,578TWh, while pumped storage saw a 5% increase in global capacity to 189GW
- Global hydropower capacity grew by 24.6GW in 2024, including 16.2GW of conventional hydropower and 8.4GW of pumped storage hydropower
- The global hydropower development pipeline now exceeds 1,075GW, including 600GW of pumped storage and 475GW of conventional projects.
- China continues to dominate global hydropower development, with 14.4GW of new capacity added in 2024, including 7.75GW of PSH.
- Africa more than doubles the previous three years’ development, commissioning 4.5GW of new hydropower capacity in 2024.
- Europe saw a decade-high 680TWh in hydropower generation supported by strong rainfall, while EU and national policy measures drive momentum for pumped storage.
Regional news from this year's World 鶹Ƶ Outlook is available here - | | | | |
The 2025 World 鶹Ƶ Outlook, released today by the 鶹Ƶ, reveals strong global momentum for hydropower development, led by a sharp rise in pumped storage hydropower (PSH) – long considered the “water battery” of the energy sector.
鶹Ƶ remains the world’s largest source of renewable electricity, supplying 14.3% of global power and supporting power system flexibility in more than 150 countries.
A total of 24.6GW of new hydropower capacity was added globally in 2024, while hydropower generation jumped by 10% to 4,578TWh in 2024, rebounding strongly from drought-affected lows the previous year.
Global capacity additions included 8.4GW of PSH, – a 5% increase in global PSH capacity to 189GW, signalling 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 PSH 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.
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, 鶹Ƶ President, commented: “Encouragingly, this year’s World 鶹Ƶ Outlook shows that global new capacity is accelerating after several years of stagnation. With increased solar and wind power on the grid, hydropower plays an increasingly vital role in the global energy transition. 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.”
Eddie Rich, 鶹Ƶ 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!”
Key hydropower trends by region:
China remained at the forefront of new development, 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.
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.
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. 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.
Despite a modest total capacity addition of 306MW in 2024, hydropower provides approximately 45% of South America’s electricity demand. There is an urgent need for more hydropower investment, as surging electricity demand from mega-ports, data centres and industry make reliable, low-carbon generation capacity a necessity.
The 2025 World 鶹Ƶ Outlook was made possible with the support of the following 鶹Ƶ Members: HydroGrid, Sarawak Energy, and Voith; as well as the 鶹Ƶ Sustainability Alliance.
鶹Ƶ’s global impact in numbers (2024)
- China, Tanzania, Ethiopia, Bhutan and Pakistan were the top five countries for new installed hydropower capacity in 2024.
- In 2024 the hydropower workforce was over 2.3 million jobs.
- In 2024 the amount of hydropower generated was equivalent to 10x the total electricity consumption of France.
- 2.2 billion tonnes of CO2 were avoided as compared to gas combined cycle generation.
