China continued to play a dominant role in global hydropower development in 2024, accounting for the vast majority of Asia’s newly added capacity as it invests heavily in energy storage solutions, according to a new report.
The country was responsible for 14.4 gigawatts of the 24.6GW of new hydropower capacity that came online globally last year, as it bets big on the energy source as an effective way to maintain a stable grid amid the green transition.
More than half of the hydropower capacity China added last year came in the form of pumped storage hydropower (PSH) projects, which store massive amounts of water in reservoirs that can then be released when an electricity grid is running low on power, according to the International Hydropower Association study released on Wednesday.
The energy storage technology is becoming increasingly popular around the world, with governments searching for ways to cope with large fluctuations in solar and wind energy without resorting to fossil fuels.
China has doubled down on its dam-building spree since 2020, when Beijing set a target of achieving carbon neutrality by 2060.
“With more than 200GW of PSH projects under construction or approved, China is on track to exceed its 2030 target of 120GW, potentially reaching 130GW by the end of the decade,” the study said.
China currently has nearly 436GW of installed hydropower capacity, which represents more than three-quarters of Asia’s total capacity, according to the report.
The country’s dominance in hydropower mirrors its lead in other forms of renewable energy. China’s solar and wind capacity had surpassed 1,200GW by the end of 2024, meaning the country had already reached a milestone originally targeted for 2030, the report noted.
In February, the National Development and Reform Commission and the National Energy Administration issued a joint notice on enhancing pricing reforms for electricity generated from renewable energy sources.
“China’s renewable energy sector has taken a lead in the world, but to ensure long-term strength and healthy development, it must be tested in a competitive market environment,” Liu Manping, an economist at the NDRC, told state news agency Xinhua at the time.
China is not the only country investing in hydropower. Countries including Australia, Vietnam, Thailand, Laos and the Philippines are also advancing new projects and refining regulatory frameworks to support the industry’s development, the report said.
Malcolm Turnbull, the president of the International Hydropower Association, said global hydropower investment was “accelerating” after several years of “stagnation”, but added that the industry still needed more support.
“Hydropower is playing an increasingly vital role in the global energy transition,” he said. “Continued momentum will require bold policy action, including reforms to reward hydropower’s multiple benefits, and faster permitting.”
Despite strong momentum, the international lobby group added that hydropower projects in the Asia-Pacific region “continue to face significant headwinds outside China.”
“Financing remains a major constraint, with high upfront costs and long payback periods limiting private sector involvement,” it noted. “In many markets, the absence of clear mechanisms for valuing capacity services makes it harder for developers to secure investment.” -- SOUTH CHINA MORNING POST
