Hydropower status report - 2019 sector trends and insights - International Hydropower Association

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Hydropower status report - 2019 sector trends and insights - International Hydropower Association
2019
hydropower
status report
sector trends and insights
Hydropower status report - 2019 sector trends and insights - International Hydropower Association
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2 | International Hydropower Association | Hydropower Status Report 2018
Hydropower status report - 2019 sector trends and insights - International Hydropower Association
Acknowledgements
Contributing Ministers:                   IHA Board 2017-2019:                    External Reviewers:
Hon. Amarjeet Sohi, Minister of Natural   Ken Adams, IHA President                Anne-Raphaelle Audoin - WaterPower
Resources - Canada                                                                Canada
                                          Richard Taylor, IHA Chief Executive
Hon. Bambang P. Soemantri                                                         Anton-Louis Olivier - REH
                                          Antoine Badinier,
Brodjonegoro, Minister of National        IHA Vice President - EDF                Arturo Alarcon - IDB
Development Planning - Indonesia
                                          Lin Chuxue, IHA Vice President          Diana Carolina Salazar Ortiz - EPM
H.E. Barsha Man Pun, Minister of          - China Three Gorges Corporation
                                                                                  Diego Fernando Quintana Rojas - Itaipu
Energy, Water Resources and Irrigation
                                          Colin Clark, IHA Vice President         Binational
- Nepal
                                          - Brookfield Renewable
                                                                                  Farukh Sultantov - Consultant
Hon. Irene Nafuna Muloni, Minister        Roger Gill, IHA Vice President
of Energy and Mineral Development -                                               Husam Beides - World Bank
                                          - Consultant
Uganda                                                                            Juergen Schuol - Voith
                                          Gil Maranhão Neto, IHA Vice President
Hon. Guillermo Moncecchi, Minister of     - Engie Brasil                          Kathrin Roeck - Voith
Industry, Energy and Mining - Uruguay
                                          Christine Cantin - Hydro-Québec         Mei Zhihong - Independent expert
Editorial:                                Tammy Chu - Entura, Hydro Tasmania      Nikki Bahr - Sustainable Strategies
Researched, written and edited
                                          Mauro Corbellini - Itaipu Binacional    Pierre Levasseur - EDF
by the team at IHA Central Office:
                                          Tron Engebrethsen - Statkraft AS        Pierre Lundal - WaterPower Canada
Analysts:
                                          Awadh Giri - HydrofE3                   Pimhein Kool - FMO
Bill Girling
Cristina Díez Santos                      Moisés Machava - Hidroelétrica de       Qu Ang - CTG
David Samuel                              Cahora Bassa
                                                                                  Ramesh Vaidya - ICIMOD
María Ubierna                             Kelly Malone - King & Spalding
Mathis Rogner                                                                     Ravi Kalra - Voith
Nicholas Troja                            Segomoco Scheppers - Eskom
                                                                                  Ren Jinghuai - CHSE
Samuel Law                                Óli Grétar Blöndal Sveinsson
                                          - Landsvirkjun                          Renata de Biasi Ribeiro - Itaipu
Interns:                                                                          Binational
Claire Nakabugo                           Sharbini Suhaili
                                          - Sarawak Energy Berhad                 Rodrigo Fernández Ordóñez - Vice
Pan Ei Ei Phyoe                                                                   Minister of Energy & Mines, Guatemala
Sabrina Upadhyay                          Evgeniy Tikhonov - EuroSibEnergo
                                                                                  Rufino Andres Rojas - Itaipu Binational
                                          Uwe Wehnhardt - Voith Hydro
Sustainability:                                                                   Thais Soares - Engie Brasil
João Costa                                Yves Rannou - GE Renewable Energy
                                                                                  Xiaoping Wang - World Bank
Alain Kilajian
                                                                                  Zheng Chunzhou - Independent expert
Editor:
Will Henley

Production:
Louis Scorza

                                                                                                                            | 1
Hydropower status report - 2019 sector trends and insights - International Hydropower Association
The Gordon Dam in the south-west of
                                                                                                                                                Tasmania, Australia.
                                                                                                                                                Credit: Hydro Tasmania.

     CONTENTS
     Acknowledgements                                                      1

     About IHA                                                             4
                                                                                Regions in Focus
     Foreword                                                              6
                                                                                                                                                  Report methodology
     Executive Summary                                                              Map of new hydropower capacity added in 2018          48
                                                                                                                                                  Statistics for the Hydropower
           Key trends and developments                                     8        Map of hydropower capacity and generation by region   50
                                                                                                                                                  Status Report are compiled by
                                                                                    North and Central America                             52      IHA using data from published
           Regional trends in brief                                        10                                                                     sources, IHA members, government
                                                                                    South America                                         60      representatives, industry sources
     Infographics                                                          12                                                                     and media monitoring.
     Policy Perspectives                                                            Africa                                                68
                                                                                                                                                  IHA’s database lists more than
           Canada: Minister of Natural Resources                           16       Europe                                                76      13,000 stations in 150 countries.
                                                                                                                                                  For hydropower generation,
           Indonesia: Minister of National Development Planning            18       South and Central Asia                                84      statistics are a combination of
                                                                                                                                                  official government reports and
           Nepal: Minister of Energy, Water Resources and Irrigation       20       East Asia and Pacific                                 92      IHA estimates based on averaged
                                                                                                                                                  capacity factors.
           Uganda: Minister of Energy and Mineral Development              22   Table: World Hydropower Data                              100
                                                                                                                                                  The data is tracked, stored
           Uruguay: Minister of Industry, Energy and Mining                24   IHA Membership Information                                102     and updated to account for
                                                                                                                                                  new information as it is received.
     Trends in Focus                                                                                                                              Data verification exercises are
                                                                                                                                                  an ongoing process, leading to
           Benefits of hydropower                                          30                                                                     corrections as and when required.
           Climate resilience                                              32

           Modernisation                                                   34

           Pumped storage                                                  36

           Regional interconnections                                       38

           Sustainability                                                  40

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Hydropower status report - 2019 sector trends and insights - International Hydropower Association
About IHA

                                                                                                                                                                                                 ABOUT IHA
     Advancing sustainable hydropower
     The International Hydropower Association (IHA) is a non-profit
     membership organisation committed to sustainable hydropower.

     IHA’s vision is a world where water                    Knowledge building                 Sustainability
     and energy services are delivered to
                                                            IHA’s programmes increase          IHA is a champion of good practices
     all in a sustainable way.
                                                            awareness of hydropower’s          and continuous improvement in the
     Our mission is to advance sustainable                  value to clean energy systems      hydropower sector.
     hydropower by building and sharing                     and sustainable development,
                                                                                               We support project assessments and
     knowledge on its role in renewable                     promoting collaborative,
                                                                                               training as the management body
     energy systems, responsible                            adaptive approaches to river
                                                                                               for the Hydropower Sustainability
     freshwater management and climate                      basin development and regional
                                                                                               Assessment Tools. These tools
     change solutions.                                      interconnections.
                                                                                               are used to guide and assess
     We achieve this through monitoring                     We provide practical advice and    performance against a range of
     the sector, advancing strategies                       support to members on operations   environmental, social, technical and
     that strengthen performance, and                       and maintenance and have           economic criteria.
     building an open, innovative and                       developed tools for dealing with
     trusted platform for knowledge.                        new challenges such as assessing
                                                            reservoir carbon emissions and     Find out more:
                                                            building climate resilience.
                                                                                               www.hydropower.org

                                                                                                                                      Download our 2018-19 Activity and Strategy Report:
                                                                                                                                      hydropower.org/activity2019

4 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                   | 5
Hydropower status report - 2019 sector trends and insights - International Hydropower Association
Foreword

                                                                                                                                                                                                                                                                             FOREWORD
     The Hydropower Status Report is an authoritative guide
     to key trends in hydropower development, featuring policy
     insights and latest global capacity and generation data.

     The 2019 Hydropower Status Report,                     Four years on since the Sustainable      for hydropower development aimed
     published by the International                         Development Goals were agreed            at boosting industrial growth and
     Hydropower Association (IHA), offers                   at the United Nations in 2015,           reducing carbon emissions. Minister
     insights on hydropower development                     governments increasingly recognise       of National Development Planning
     across all regions of the world.                       hydropower as playing a vital role       Bambang P. Soemantri Brodjonegoro
                                                            in national strategies for delivering    explains that his country is committed
     Now in its sixth edition, this report
                                                            affordable and clean energy,             to reduce GHG emissions by 29
     is compiled by a team of analysts
                                                            managing freshwater, combatting          per cent by 2030, through which
     using information provided by
                                                            climate change and improving             “increasing and promoting the use of
     our members, industry sources
                                                            livelihoods.                             new and renewable energy is critical.”
     and government representatives,
     published sources and media                            We are honoured that five leading        The challenge for many emerging
     monitoring.                                            government ministers from Canada,        economies and developing countries,
                                                            Indonesia, Nepal, Uganda and             however, is to raise the investment
     Our research found that, during 2018,
                                                            Uruguay, with responsibility for         capital to build and sustain             conventional renewable energies,         professionals, recognises that urgent
     hydropower projects added almost 22
                                                            energy, water and infrastructure         hydropower projects, while also          redoubling the commitment to             action is required to deliver clean
     gigawatts (GW) of installed capacity
                                                            planning, have shared their              ensuring national institutions have      comply with the SDGs.”                   energy to limit the effects of climate
     worldwide. This brought existing
                                                            perspectives and policy priorities in    sufficient capacity to ensure projects                                            change, and to meet people’s basic
     capacity to 1,292 GW, resulting in an                                                                                                    Through the pages of this report,
                                                            this report.                             are delivered in accordance with                                                  needs for freshwater and affordable
     estimated 4,200 terawatt hours (TWh)                                                                                                     we highlight tools, trends and topics
                                                                                                     good practice on environmental and                                                energy.
     in clean electricity generation last                   In Canada, six out of every 10 homes                                              of direct interest to hydropower
                                                                                                     social performance.
     year.                                                  and businesses are powered by                                                     developers, operators, investors,        Our mission is to advance sustainable
                                                            hydroelectricity and the sector is       In Nepal, the government is seeking      governments and, ultimately, local       hydropower by building and sharing
     Hydropower development today
                                                            widely recognised for job creation.      to attract foreign investment in         communities. These subjects range        knowledge on its role in renewable
     is most active in fast growing
                                                            Writing in these pages, Minister of      hydropower and is exploring regional     from efforts to assess the benefits of   energy systems, responsible
     economies and emerging markets,
                                                            Natural Resources Amarjeet Sohi          energy interconnections as a way of      hydropower, through to financing         freshwater management and climate                The Fierza Hydroelectric Power
     with the East Asia and the Pacific                                                                                                                                                                                                  Station on the Drin cascade in
                                                            welcomes industry efforts to build       reducing reliance on fossil fuels and    pumped storage projects and              solutions. We do this through
     region, followed by South America,                                                                                                                                                                                                            Albania. Credit: KESH.
                                                            partnerships with indigenous             increasing off-grid access. Minister     adapting operations to new digital       programmes aimed at lifting the
     adding the highest additional
                                                            communities that “create new, long-      of Energy, Water Resources and           technology.                              sector’s performance and improving
     capacity last year. The United States,
                                                            term economic opportunities” while       Irrigation, Barsha Man Pun, writes                                                understanding on good practices.
     which was previously surpassed                                                                                                           The year 2018 saw the launch
                                                            reducing reliance on diesel in remote    that his government is considering
     by China, has now been eclipsed                                                                                                          of a suite of new sustainability         We encourage all organisations and
                                                            communities.                             distributed electricity generation
     by Brazil as the second largest                                                                                                          tools by IHA and the Hydropower          individuals that share our vision of
                                                                                                     through a mix of hydropower
     hydropower country by installed                        Elsewhere, in countries such as                                                   Sustainability Assessment Council,       a world where water and energy
                                                                                                     projects, solar, and wind.
     capacity.                                              Indonesia, Nepal and Uganda,                                                      a multi-stakeholder coalition            services are delivered to all in a
                                                            hydropower holds the potential           In South America, Uruguay has            of representatives of social and         sustainable way to join us in this
                                                            to accelerate social and economic        reached close to 100 per cent            environmental NGOs, industry,            endeavour.
                                                            progress and reduce poverty through      renewable electricity generation         government and multilateral
                                                            widening access to electricity.          thanks to the contribution of            institutions. These tools include the

     1,292 GW                                               “For Uganda to achieve sustainable
                                                            development,” writes Minister of
                                                            Energy and Minerals Irene Nafuna
                                                                                                     hydropower. Importantly, the
                                                                                                     government also recognises the
                                                                                                     “strong complementarity” between
                                                                                                                                              Hydropower Sustainability Guidelines,
                                                                                                                                              which present definitions of good
                                                                                                                                              practice in the planning, operation
     worldwide hydropower                                                                            hydroelectric and other variable         and implementation of hydropower
     installed capacity in 2018                             Muloni, “the hydropower resources
                                                                                                     renewable energy forms. Minister         projects, and a new Environmental,
                                                            that remain untapped will have to be
                                                                                                     of Industry, Energy and Mining           Social and Governance Gap Analysis
                                                            developed so as to bring to fruition
                                                                                                     Guillermo Moncecchi explains that        Tool for identifying and address gaps
                                                            plans aimed at increasing access to
                                                                                                     hydroelectric power has “not only had    against good practice.

     4,200 TWh
                                                            electricity and per capita electricity
                                                                                                     a relevant role in the past, ensuring
                                                            consumption.”                                                                     IHA, as a not-for-profit association
                                                                                                     the sustainability of the electricity
                                                            In line with the Paris Agreement,        mix, but also in the present, acting
                                                                                                                                              whose members include public                                                      Ken Adams
                                                                                                                                              and private companies, national          Richard Taylor
     estimated electricity generated                        Indonesia has developed a strategy       as a platform to develop non-                                                                                              President
     from hydropower in 2018                                                                                                                  organisations and hydropower             Chief Executive

6 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                                                                                               | 7
Hydropower status report - 2019 sector trends and insights - International Hydropower Association
Executive summary

                                                                                                                                                                                                                                                                                  EXECUTIVE SUMMARY
                                                                                                                                                                                                                       The Vieux-Emosson dam and reservoir in Valais,
                                                                                                                                                                                                                       Switzerland. Credit: © Alpiq.

     Electricity generation from hydropower sources
     reached record heights in 2018.

     Key trends and developments                            Understanding hydropower’s                         Building resilience to climate change       Turbo-charging the energy                 The digital revolution
                                                            benefits                                                                                       transition                                                                                  FASTEST GROWING
     In 2018, electricity generation from                                                                      Hydropower produces almost                                                            The global hydropower fleet                       COUNTRIES BY NEW
     hydropower reached an estimated                        Hydropower delivers a range                        two-thirds of the world’s renewable         Pumped hydropower storage has             is adapting to a new era of                       INSTALLED CAPACITY
     4,200 terawatt hours (TWh), setting                    of benefits to society and the                     electricity generation and is making        proven to be an essential component       digitalised design, operations and                IN 2018
     the highest ever contribution from a                   environment. Power-related                         a major contribution to delivering on       for modern and future clean energy        maintenance. Digitalisation will be
     renewable energy source.                               benefits include clean and flexible                the ambition of the Paris Agreement         systems. The significant increase in      instrumental in helping to bring

                                                                                                                                                                                                                                                       China
                                                            generation and storage, as well as                 and the Sustainable Development             variable renewable electricity sources    new efficiencies to clean energy
     An estimated 21.8 gigawatts (GW) of
                                                            reduced dependence on fossil fuels                 Goals. Without this contribution, the       like wind and solar coupled with          generation.
     hydropower capacity was put into
                                                            and avoidance of pollutants.                       objective of limiting climate change to     their displacement of conventional
     operation last year, including nearly                                                                                                                                                           Read more on pages 34-35.
                                                                                                               1.5 or 2 degrees above pre-industrial       generators has put increasing

                                                                                                                                                                                                                                                       8.54 GW
     2 GW of pumped storage, bringing                       More challenging to quantify are
                                                                                                               levels would likely be out of reach.        pressure on power grids and               Regional cooperation in power
     the world’s total installed capacity to                the non-power benefits associated
                                                                                                                                                           underlined the need for pumped            markets
     1,292 gigawatts (GW).                                  with a hydropower project. These                   Hydropower projects offer countries
                                                                                                                                                           hydropower ‘water batteries’.
                                                            include economic improvements                      protection against the impacts of by                                                  Integrating electricity markets
     The East Asia and Pacific region
                                                            to livelihoods and local supply                    climate change and extreme weather,         While we are witnessing renewed           through regional interconnections
     once again held its position as
                                                            chains, enhanced navigation and                    such as floods and drought, however         interest in pumped hydropower

                                                                                                                                                                                                                                                       Brazil
                                                                                                                                                                                                     helps countries use hydropower and
     the fastest growing last year, with
                                                            transportation, and investment in                  variable climate conditions also make       as the technology evolves to              other renewable energy resources
     9.2 GW of hydropower installed
                                                            community services. Freshwater                     these projects susceptible to climate       ensure grid stability, markets            more efficiently. The Nordic Power
     capacity added. It was followed by
                                                            management benefits including                      risks due to their dependency on            around the world have been slow           Market offers a blueprint for other

                                                                                                                                                                                                                                                       3.87 GW
     South America (4.9 GW), South and
                                                            supply for homes, industry and                     precipitation and runoff.                   to recognise and reward its value,        world regions to follow.
     Central Asia (4.0 GW), Europe (2.2
                                                            agriculture, and mitigation against                                                            pointing to deficiencies in how
     GW), Africa (1.0 GW) and North and                                                                        New guidance for the hydropower                                                       Read more on pages 38-39.
                                                            floods and drought.                                                                            liberalised markets are incentivising
     Central America (0.6 GW).                                                                                 sector published by IHA will
                                                                                                                                                           development.                              Local capacity in sustainable
                                                            With the goal of improving                         support operators and investors to
     Forty-eight countries added
     hydropower capacity in 2018. The
     countries with the highest individual
                                                            understanding about the
                                                            underreported benefits of
                                                                                                               demonstrate robust ways of achieving
                                                                                                               climate resilience. This will address the
                                                                                                                                                           If pumped hydropower storage is
                                                                                                                                                           to continue to deliver grid services,
                                                                                                                                                                                                     hydropower
                                                                                                                                                                                                     Capacity-building among local
                                                                                                                                                                                                                                                       Pakistan 2.49 GW
                                                            hydropower, IHA is undertaking a                   need for international good practice        either through existing or new            stakeholders and institutions
     increases in installed capacity were
     China (8.5 GW) and Brazil (3.7 GW).
     Among the top five were Pakistan
                                                            global study of projects categorised
                                                            as either single or multi-purpose,
                                                                                                               on how to assess climate risks and
                                                                                                               incorporate resilience into project
                                                                                                                                                           projects, the market framework
                                                                                                                                                           and regulatory treatment of this
                                                                                                                                                                                                     supports the regional development
                                                                                                                                                                                                     of water and energy services, guided              Turkey 1.09 GW
                                                            for example providing power                        planning, design, and operations.           technology will need to evolve            by international good practices in
     (2.5 GW), Turkey (1.1 GW) and
     Angola (0.7 GW).
                                                            generation, water supply, irrigation
                                                                                                               To be launched at the 2019
                                                                                                                                                           accordingly. Pumped storage should        sustainability.                                   Angola 0.67 GW
                                                            and flood control.                                                                             not be seen merely as a back-up
                                                                                                               World Hydropower Congress, the                                                        Read more on pages 40-43.
     With Brazil reaching 104 GW
                                                            Multi-purpose hydropower projects                  Hydropower Sector Climate Resilience
                                                                                                                                                           generator or a provider of ancillary                                                        Tajikistan 0.61 GW
     in installed capacity, the South                                                                                                                      grid services, but as a resource that
                                                            predominate in South and Central                   Guide has been tested by project
     American nation has now overtaken
                                                            Asia, whereas South America has the                operators around the world, with
                                                                                                                                                           provides benefits across a whole                                                            Ecuador 0.56 GW
     the United States (103 GW) as                                                                                                                         spectrum of roles within local and
                                                            lowest percentage of multi-purpose                 technical and financial support from                                                                                                    India 0.54 GW
     the second largest country by                                                                                                                         regional water and energy systems.
                                                            dams. While most hydropower                        the European Bank for Reconstruction
     hydropower capacity.
                                                            projects were built for a single                   and Development (EBRD) and the              Read more on pages 36-37.
     See the map on pages 48-51 and the                     purpose, a significant share were                  World Bank and its Korea Green
     tables on pages 100-101 for data for                   constructed to support additional                  Growth Trust Fund.
     each country and region.                               services, or were later recognised to
                                                                                                               Read more on pages 32-33.
                                                            provide these services.
                                                            Read more on pages 30-31.
     2018 HIGHLIGHTS

          4, 200 TWh                      1,292 GW                         160.3 GW                   21.8 GW                      1.9 GW                                                                 The Rogun hydropower
         Electricity generated from        Global hydropower               Global pumped storage     Capacity added in 2018,   Pumped storage capacity                                              project under construction in
            hydropower in 2018              installed capacity                installed capacity   including pumped storage        added in 2018                                                      Tajikistan. Credit: PA Images.

8 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                                                                                                    | 9
Hydropower status report - 2019 sector trends and insights - International Hydropower Association
Executive summary

                                                                                                                                                                                                                                                                                          EXECUTIVE SUMMARY
     Regional trends in brief
     North and Central America                             South America                               Africa                                    Europe                                      South and Central Asia                    East Asia and Pacific
     Hydropower remains the dominant                       South America was the second fastest        Africa has the highest percentage         As variable renewables continue             Installed hydropower capacity in South    East Asia and the Pacific again saw
     electricity source across North and                   growing region, adding 4,855 MW in          of untapped technical hydropower          their rapid growth, hydropower is           and Central Asia grew by almost 4         the highest annual increase in
     Central America, although year-on-                    installed hydropower capacity in 2018.      potential in the world. 1,009 MW was      increasingly recognised in Europe for       GW in 2018, continuing the growth         hydropower installed capacity in 2018.
     year growth in hydropower installed                                                               added in 2018, bringing total installed   its flexible services to maintain secure,   trajectory from 2017.
                                                           Brazil contributed 80 per cent of the                                                                                                                                       9.2 GW was added last year, bringing
     capacity is the lowest on a global scale.                                                         capacity to 36.3 GW.                      affordable and sustainable energy
                                                           region’s added hydropower capacity                                                                                                India categorised large hydropower        total installed capacity across the
     In 2018, 575 MW of conventional                       and is the second fastest growing           In 2018, Angola commissioned two          supply.                                     projects as renewable energy, which       region to over 480 GW. The region
     hydropower capacity was added in                      country in the world after China. Brazil    more power generating units for the       Europe added an estimated 2.2 GW in         along with supporting measures,           also accounted for over a third of the
     Canada, while the United States and                   has now overtaken the USA as the            2,070 MW Laúca hydropower station.        2018, including 384 MW of pumped            signifies a major step forward in         world’s total hydropower generation.
     Central America added a further 80                    world’s second largest country by           Once fully operational in 2019, it        storage, of installed capacity in 2018,     national policy.
                                                                                                                                                                                                                                       Over 90 per cent of the added
     MW in 2018.                                           installed hydropower capacity.              will provide over 25 per cent of the      bringing the total to 252 GW, including     Pakistan’s installed hydropower           capacity came from China, including
                                                                                                       country’s electric installed capacity.    57.4 GW pumped storage.
     Canada has four major hydropower                      Climate variability has increased the                                                                                             capacity grew by over 25 per cent in      1.5 GW from pumped storage, which
     projects under construction, which will               need for regional interconnections to       Several modernisation projects            Turkey led the region in new installed      2018 alone, as large-scale projects       increased its total installed capacity to
     add another 2,900 MW of capacity over                 import electricity from countries with      were completed in 2018, including         capacity additions, adding over 1 GW        came online boosting grid supply          352 GW.
     the next five years.                                  growing surpluses like Bolivia, and         the 300 MW Kariba South Bank              at greenfield sites.                        capacity.
                                                                                                                                                                                                                                       Significant activity took place in
                                                           diversify renewable energy sources in       expansion project in Zimbabwe, the
     New legislation introduced in the                                                                                                           Austria added significant new and           Tajikistan passed an important            Myanmar where, after some delay,
                                                           countries such as Argentina and Chile.      32 MW Mwadingusha plant in the
     US Congress formally recognises                                                                                                             innovative pumped storage capacity          milestone with the construction of the    the government issued a notice to
                                                                                                       Democratic Republic of Congo and
     hydropower in the definition of                       There is increasing need for                                                          to support wind and solar and overall       Rogun hydropower project, as the first    proceed for both the 1,050 MW Shweli
                                                                                                       the 36 MW Nkula project in Malawi.
     renewable energy and facilitates                      modernisation of ageing large                                                         system efficiency, including the 360        600 MW unit entered into operation.       3 and the 60 MW Deeoke projects.
     a timelier process for new project                    hydropower infrastructure to extend         In Uganda, construction of the 183.2      MW Obervermuntwerk II project.              Across Central Asia, there is growing     Cambodia took an important step
     approvals and existing project                        asset life and boost electricity            MW Isimba project was completed
                                                                                                                                                 Norway completed the 370 MW                 interest in regional interconnections     forward in achieving its energy
     relicensing. The US Department of                     generation to cope with growing             and it was commissioned in March
                                                                                                                                                 Lysebotn II project, which replaced         and power markets for hydropower          goals with the commissioning of the
     Energy has placed increased emphasis                  electricity demand.                         2019.
                                                                                                                                                 its 210 MW predecessor. Iceland             development, including bilateral          400 MW Lower Sesan II project, the
     on grid reliability and flexibility
                                                           Initially set to be commissioned            In Cameroon, the 200 MW Memve’ele         added 100 MW at the Búrfell II project,     agreements signed between BBIN            country’s largest hydropower project.
     attributes provided by pumped
                                                           in 2018, the 2,400 MW Ituango               project was completed, with the first     utilising existing infrastructure from      countries (Bhutan-Bangladesh-India-
     hydropower.                                                                                                                                                                                                                       Australia continued to progress with
                                                           hydropower plant in Colombia                80 MW put into operation in April         Búrfell I.                                  Nepal) in South Asia, and construction
                                                                                                                                                                                                                                       the development of several pumped
     Several Central American countries,                   suffered a three-year delay following       2019.                                                                                 of the CASA 1000 cross-border
                                                                                                                                                 In the Iberian peninsula hydropower                                                   storage projects, with Snowy Hydro’s
     including Costa Rica, Guatemala and                   a series of events in May that resulted                                                                                           transmission project.
                                                                                                       Egypt inaugurated the 32 MW New           generation recovered after a significant                                              2,000 MW ‘Snowy 2.0’ project receiving
     Panama, produce the majority of their                 in the untimely filling of the reservoir,
                                                                                                       Assiut Barrage project and contracts      period of drought in the previous year.     Modernisation programmes at large,        the green light to proceed in early
     electricity from renewable sources,                   affecting communities downstream.
                                                                                                       were signed for the 2,400 MW Ataqa                                                    older stations continued across Russia,   2019.
     largely due to hydropower.                            Steps have been taken to mitigate                                                     In France, major projects under
                                                                                                       pumped storage project.                                                               Georgia and other Central Asian
                                                           the damage and Hidroituango is                                                        construction include the 92 MW                                                        Across the Pacific, in Fiji, the Solomon
     Under the leadership of new President                                                                                                                                                   countries, with some rehabilitated
                                                           progressing with project works.             The region’s total hydropower             Romanche-Gavet hydropower plant,                                                      Islands and Samoa, a number of small
     Andrés Manuel López Obrador, Mexico                                                                                                                                                     units coming back into service in 2018.
                                                                                                       installed capacity is expected to grow    and the 330 MW La Coche pumped                                                        hydropower projects are under active
     plans on significantly increasing                     In Brazil, a group of hydropower
                                                                                                       by over 40 GW over the next two to        storage plant, which will add a 240 MW      Read more on pages 84-91.                 development.
     hydropower generation by building                     developers and operators formed
                                                                                                       three years due to major new projects     turbine.
     new plants and rehabilitating existing                the Forum for the Development                                                                                                                                               Read more on pages 92-99.
                                                                                                       coming online.
     facilities.                                           of Midsize Hydropower Plants to                                                       Read more on pages 76-83.
                                                           strengthen private sector investments       Read more on pages 68-75.
     Read more on pages 52-59.
                                                           in hydropower.
                                                           Read more on pages 60-67.

                                                                                                                                                     The Cambambe power station in
                                                                                                                                                           Angola. Credit: Voith Hydro.
10 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                                                                                                          | 11
Hydropower status report - 2019 sector trends and insights - International Hydropower Association
Hydropower Status Report 2019

                                                                                                                                                                                                                                                                                                                                HYDROPOWER KEY FACTS
                                                                                                                                                        NEW INSTALLED CAPACITY BY REGION (MW)
     HYDROPOWER INSTALLED CAPACITY WORLDWIDE                                                                                                                              East Asia
                                                                                                                                                                        and Pacific
                                                                                                                                                                                                                                                              9,169 MW

               REST OF THE WORLD 269
                                                                                                                                                                     South America                                   4,855 MW
                                                                                                                                      CHINA 352
                                                                                                                                                                        South and
               COLOMBIA 12                                                                                                                                             Central Asia                        3,962 MW
               IRAN 12
               MEXICO 12
                                                                                                                                                                              Europe        2,202 MW                                               21.8 GW
                                                                                                                                                                               Africa               1,009 MW                                        Total new installed

                                                                                            4,200
               AUSTRIA 15                                                                                                                                                                                                                             capacity (2018)
               VENEZUELA 15                                                                                                                                      North and
                                                                                                                                                            Central America                   620 MW
               SWEDEN 16
               VIETNAM 17                                                                         T Wh
               SWITZERLAND 17
               SPAIN 20                                                                          s2ta0ll1ed8 capa
                                                                                                                 city                                   NEW INSTALLED CAPACITY BY COUNTRY (MW)
                                                                                               in
                                                                                           New
               ITALY 23
               FRANCE 26
               TURKEY 28
                                                                                                                                     BRAZIL 104
               NORWAY 32
               RUSSIA 49                                                                                                             UNITED
               INDIA 50                                                                                                              STATES 103                                                         1,085
                                                                                                                                                                8,540            3,866      2,487                     668        605            556        535            419          401
               JAPAN 50                                                                                                              CANADA 81
                                                                                                                                                                     China        Brazil    Pakistan    Turkey       Angola    Tajikistan     Ecuador      India      Norway       Canada
     Hydropower installed capacity (GW) of top 20 countries and
     rest of the world including pumped storage in 2018.                                         1,292                  Total hydropower
                                                                                                                        installed capacity in 2018
     Source: IHA 2018                                                                                GW

                                                                                                                                                       HYDROPOWER GROWTH THROUGHOUT THE DECADES
     PUMPED HYDROPOWER STORAGE WORLDWIDE
                                                                                                                                                                 1500                                                                                                                  4500

                                                                                                                                                                                                                                                                                       4000
                                                                                                                                                                 1250
         160.3 GW                                                                                                                                                                                                                                                                      3500

                                                                                                                                                                                                                                                                                              Annual average generation (TWh)
                                          37.2                        Rest of the World
                                                                                                                                                                 1000                                                                                                                  3000
                                         30.0                         China

                                                                                                                                                     Capacity (GW)
          Total worldwide                27.6                         Japan                                                                                                                                                                                                            2500
            hydropower                   22.9                         United States                                                                                  750
          pumped storage                                                                                                                                                                                                                                                               2000
              in 2018                    7.6                          Italy
                                         7.0                          France                                                                                         500                                                                                                               1500
                                         6.8                          Germany
                                         6.2                          Spain                                                                                                                                                                                                            1000
                                                                                                                                                                     250
                                         5.5                          Austria
                                                                                                                                                                                                                                                                                       500
                                         4.8                          India
                                         4.7                          South Korea                                                                                      0                                                                                                               0
                                                                                                                                                                             1950-1959     1960-1969     1970-1979       1980-1989          1990-1999     2000-2009        2010-2018

    Pumped hydropower storage capacity (GW) of top 10 countries and rest of the world in 2018.
                                                                                                                                                                                   Added capacity              Cumulative capacity              Annual average generation
    Source: IHA 2018.                                                                                                                                                              (GW)                        (GW)                             (TWh)

12 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                                                                                                                                   | 13
Hydropower status report - 2019 sector trends and insights - International Hydropower Association
HYDROPOWER BENEFITS                                                                                          ELECTRICITY GENERATION                                                                                                                                     Source: IEA 2019

                                                                                                                                                                                                                                                                                                       HYDROPOWER KEY FACTS
                                                                                                                 Hydropower is the world’s largest source of renewable electricity generation
                              Affordable and reliable energy

                                                                                                                                                                                                                 15.9%
                              Hydropower is the lowest cost source of electricity generation in many markets,
                              with a global weighted average cost of USD 0.05 per kWh for new hydropower                                                                                                                                                   of global
                              projects (IRENA 2018).
                                                                                                                                                                  RENEWABLE                                                                                electricity was
                                                                                                                                                                  ELECTRICITY                                                                              produced by
                                                                                                                                                                                                                                                           hydropower
                                   Enabling solar, wind and other renewables
                                   Hydropower supports growth in variable renewables such as wind and
                                   solar, meeting demand when these sources are unavailable.                                                                       25.6%
                                                                                                                                                                                                                              4.6% WIND
                                                                                                                                        74.4%                                                                                                                             MORE THAN
                              Protecting from floods and drought                                                                                                                                                              2.5% BIOMASS
                                                                                                                                                                                                                                   WASTE
                                                                                                                                                                                                                                            AND
                                                                                                                                                                                                                                                                          ALL OTHER
                              The storage infrastructure provided by a hydropower reservoir mitigates against
                                                                                                                                                                                                                              2.1% SOLAR PV                               RENEWABLES
                              the risks posed by climate change, including extreme weather events such as                              FOSSIL
                              floods and drought.                                                                                      FUELS AND                                                                                                                          COMBINED
                                                                                                                                       NUCLEAR                                                                                 0.5%   OTHER
                                                                                                                                                                                                                                      RENEWABLES

                                   Managing freshwater responsibly
                                   Hydropower provides a vital means of safely managing freshwater,               REDUCING EMISSIONS                                                                                                                           Source: IPCC 2014 / *IHA 2018
                                   providing water supply for homes, businesses and agriculture.
                                                                                                                                                                850
                                                                                                                                                                                                                                                           18.5*

                                                                                                                Median lifecycle carbon equivalent intensity
                                                                                                                                                                750               820            490           230        48              38                                      11
                              Boost to economic growth and jobs

                                                                                                                                                                                  COAL

                                                                                                                                                                                                  GAS

                                                                                                                                                                                                                BIOMASS

                                                                                                                                                                                                                           SOLAR PV

                                                                                                                                                                                                                                          GEOTHERMAL

                                                                                                                                                                                                                                                             HYDROPOWER

                                                                                                                                                                                                                                                                                  WIND ONSORE
                              The hydropower industry employs a reported 1.8 million workers worldwide,                                                         650
                              and many more in connected supply chains (IRENA 2018).

                                                                                                                              (gCO2-eq/kWh)
                                                                                                                                                                550

                                                                                                                                                                450
                                   Avoiding pollutants and emissions
                                   Hydropower is a low-carbon technology which helps to offset the                                                              350
                                   carbon emissions and pollutants caused by fossil fuels.
                                                                                                                                                                250

                                                                                                                                                                150
                              Improving infrastructure and waterways
                              Hydropower development delivers greater regional connectivity in distribution                                                        0
                              and transport networks.                                                               Hydropower has one of the lowest lifecycle GHG emissions per kilowatt hour among all energy sources

                                   Enhancing cooperation between countries
                                                                                                                  AVOIDING POLLUTION                                                                                                                                         Source: IHA 2018

                                   Long distance electricity transmission across national boundaries
                                   promotes strong inter-governmental cooperation.                                                                                                                                                                     Using hydropower instead

                                                                                                                                                                                     4        BILLION
                                                                                                                                                               If hydropower                                                                           of coal each year avoids:
                                                                                                                                                                 was replaced

                              Community investments in rural areas
                                                                                                                                                                 with burning
                                                                                                                                                                    coal, up to
                                                                                                                                                                                              TONNES
                                                                                                                                                                                     of additional greenhouse gases
                                                                                                                                                                                                                             PM2.5            148 million tonnes
                                                                                                                                                                                                                                                  of particulates
                              Hydropower development can bolster investment in local communities,
                              including education, healthcare and other services.
                                                                                                                                                                                     would be emitted per year            PM10                 62 million tonnes
                                                                                                                                                                                                                                                  of sulfur dioxide

                                                                                                                                                                                                                                      SOx
                                                                                                                                                                                                                                          NOx   8 million tonnes

                                                                                                                                                                                                            10%
                                                                                                                                                                                                                                                  of nitrogen oxide
                                                                                                                                                                                         and global
                                                                                                                                                                                         emmisions from
                                   Recreational activities and tourism                                                                                                                   fossil fuels and
                                                                                                                                                                                                            HIGHER
                                   Hydropower reservoirs can offer regional development through the creation                                                                             industry would
                                   of tourism, recreational activities and fisheries.                                                                                                    be at least

14 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                                                                                                                       | 15
Policy perspectives

                                                                                                                                                                                                                                                          POLICY PERSPECTIVES
      View from Canada

     Canada’s clean energy priorities need
     hydropower
                                            The Canadian government will work with international
                                            partners to promote opportunities for hydropower,
                                            eliminate barriers for renewable energy, and share best
                                            practices and benefits around the world, writes the
                                            Honourable Amarjeet Sohi, Minister of Natural Resources.

                                                           With its vast landmass and              years, Canada has been developing       create new, long-term economic          Canada is well on its way to realising
                                                           diverse geography, Canada has an        its water resources to produce clean,   opportunities from coast to coast       this vision and hydropower is
                                                           abundance of renewable energy           sustainable, reliable and affordable    while helping to reduce reliance        at the forefront of our energy
                                                           sources that are helping power our      electricity.                            on diesel fuel in off-grid, rural and   transformation. Currently, six
 Caribou Falls Generating
 Station, Ontario.                                         communities. That is part of Canada’s                                           remote communities.                     Canadian provinces and territories
                                                                                                   Hydropower generates tremendous
 Credit: OPG.                                              natural advantage; we not only have                                                                                     generate more than 94 per cent            White Dog Falls Generating
                                                                                                   economic opportunities and provides
                                                           abundant resources, we have the                                                                                         of their electricity from renewable       Station, Ontario.
                                                                                                   thousands of jobs in communities
                                                           expertise and experience to develop                                                                                     sources. This creates opportunities       Credit: OPG.
                                                                                                   across the country – all the while
                                                           those resources – sustainably and                                                                                       for more trade in clean electricity
                                                                                                   helping to ensure low electricity
                                                           competitively.                                                                                                          between provinces and territories,
                                                           Hydropower is a great example of
                                                                                                   prices for Canadians. In fact, six
                                                                                                   out of every 10 Canadian homes          Hydropower is                           while boosting our economy,
                                                                                                                                                                                   creating jobs and protecting our
                                                           that advantage. For close to 140        and businesses are powered by
                                                                                                   hydropower.                             at the forefront                        environment.
                                                                                                                                                                                   We are also using technologies that
                                                                                                   The industry has also built new
                                                                                                   partnerships by developing projects
                                                                                                   with indigenous communities that
                                                                                                                                           of our energy                           improve the reliability, resiliency and
                                                                                                                                                                                   flexibility of our new renewables-
                                                                                                                                                                                   sourced energy systems. This
                                                                                                                                           transformation                          technology will allow us to increase
                                                                                                                                                                                   our energy security and provide
                                                                                                                                                                                   consumers with a wider range of
                                                                                                                                                                                   energy choices.
                                                                                                                                                                                   For all of these reasons, our
                                                                                                                                                                                   government sees a bright future
                                                                                                                                           In 2017, our government launched
                                                                                                                                                                                   for Canada’s hydropower industry
                                                                                                                                           Generation Energy, a nationwide
                                                                                                                                                                                   – at home and abroad. We will
                                                                                                                                           conversation on Canada’s energy
                                                                                                                                                                                   continue with international partners
                                                                                                                                           future. More than 380,000
                                                                                                                                                                                   to promote these opportunities,
                                                                                                                                           individuals participated, including
                                                                                                                                                                                   eliminate barriers for renewable
                                                                                                                                           experts, industry stakeholders, and
                                                                                                                                                                                   energy, and share best practices and
                                                                                                                                           indigenous people. Their views were
                                                                                                                                                                                   benefits around the world.
                                                                                                                                           heard and included, and the final
                                                                                                                                           report outlines four clean energy
                                                                                                                                           paths to Canada’s energy future –
                                                                                                                                           including the use of more renewable
                                                                                                                                           energy like hydropower.

16 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                                                                         | 17
Policy perspectives

                                                                                                                                                                                                                                    POLICY PERSPECTIVES
     View from Indonesia

     Indonesia promotes hydropower to create
     the demand for industrial development
                                            The Indonesian government’s strategy for hydropower
                                            development aims at boosting industrial growth, reducing
                                            carbon emissions and achieving energy independence,
                                            writes Honourable Bambang P. Soemantri Brodjonegoro,
                                            Minister of National Development Planning.

     Electricity infrastructure plays                      Until 2017, the total installed       create demand. Timika in Papua,
     a pivotal role in development.                        capacity of national power plants     Konawe in Sulawesi and Kayan
     It provides and conveys energy                        reached around 60.8 GW. PLN, the      in North Kalimantan regions are
     for increasing prosperity and                         Indonesian state-owned electricity    examples of potential locations for
     encouraging economic activities.                      company, generated around 41.7        increasing demand. In these areas
     Indonesia’s National Long-Term                        GW (68.6 per cent), and independent   mining activities and industrial
     Development Plan 2005-2025                            power producers and other             smelting could be supported by
     mandates the fulfilment of reliable                   providers generated around 19.1       hydropower projects with a large
     and efficient electricity supply                      GW (31.4 per cent). Based on the      capacity. The goal is to increase
     according to needs and increased                      type of energy source, hydropower     the competitiveness of industry by
     access to equitable energy services.                  plants (including mini hydro and      creating low cost electricity.
                                                           micro hydro) produced around
     The National Energy Policy                                                                  It is expected that the private
                                                           5.45 GW (8.8 per cent). The biggest
     (NEP) 2014-2050 underlines the                                                              sector can participate in              10 per cent; and import duty
                                                           hydropower potential is located in
     principles of fairness, sustainability                                                      projects as independent power          exemptions for equipment and
                                                           Papua Island (22.4 GW), Kalimantan
     and environmental protection                                                                producers through Public Private
     in achieving national energy
     independence and security. The
                                                           Island (21.6 GW), Sumatera Island
                                                           (15.6 GW) and Sulawesi Island (10.2
                                                                                                 Partnership (PPP) schemes. PPP
                                                                                                 schemes themselves continue to
                                                                                                                                        machinery that cannot be produced
                                                                                                                                        in Indonesia.                         The critical point
                                                           GW), while Java-Bali is 4.2 GW and                                           It is expected that these various
     government targets at least 23
     per cent in 2025 – and 31 per cent
                                                           Nusa Tenggara-Maluku is 1.1 GW.
                                                                                                 undergo transformation in their
                                                                                                 implementation in Indonesia,           policies could accelerate the
                                                                                                                                        development of hydropower
                                                                                                                                                                              in developing
     in 2050 – the portion of new and                      If we consider the requirements       marked by the issuance of                                                                         The weir of the 56 MW run-of-
     renewable energy in our national
     energy mix.
                                                           of our industrial zones or specific
                                                           economic zones, electricity demand
                                                                                                 Presidential Regulation No. 38
                                                                                                 regarding cooperation between
                                                                                                                                        sustainably and create a big impact
                                                                                                                                        in our economic development.          hydropower is        river Semangka hydropower
                                                                                                                                                                                                   plant in Sumatra, Indonesia.
                                                                                                                                                                                                   Credit: Voith Hydro.
                                                           will be drastically increased. For    government with business entities      The critical point in developing
     As part of the G20, Indonesia has
     ratified international agreements
                                                           example, domestic demand in
                                                           Kayan-North Kalimantan is only 60
                                                                                                 in providing infrastructure.           hydropower is making sure
                                                                                                                                        that the project is ready and         making sure
     in the field of environmental                                                               The Government of Indonesia has        attractive for investment. Thus,
     protection, especially in reducing
     CO2 emissions. Under the
                                                           MW but when the industrial zone
                                                           is developed, demand will increase
                                                           to 1,000 MW. This demand could be
                                                                                                 formulated several policies for
                                                                                                 incentivising the private sector in
                                                                                                                                        the comprehensive assessment
                                                                                                                                        of social, technical, economic and
                                                                                                                                                                              that the project
     Paris Agreement, Indonesia                                                                  the development of renewable
     has committed to reduce GHG
     emissions by 29 per cent in 2030
                                                           covered by the hydropower plant on
                                                           the Kayan River which has potential
                                                                                                 energy. Namely: developers can
                                                                                                 obtain a 5 per cent reduction in the
                                                                                                                                        environmental aspects should be
                                                                                                                                        promoted.                             is ready and
                                                           to deliver up to 6,000 MW.                                                   We look forward to cooperating
     from “business as usual”. Therefore,
     a reduction in the use of fossil fuel                 In the Draft of the National Mid-
                                                                                                 income tax rate for their investment
                                                                                                 each year for a period of six years;   more productively with the
                                                                                                                                        International Hydropower
                                                                                                                                                                              attractive for
     energy by increasing and promoting                    Term Development Plan 2020-           accelerated depreciation of fixed
     the use of new and renewable
     energy is critical.
                                                           2024, the strategy for hydropower
                                                           development is to be changed
                                                                                                 assets can be completed within ten
                                                                                                 years; the income tax on dividends
                                                                                                                                        Association (IHA) to accelerate the
                                                                                                                                        development of hydropower in          investment
                                                           to not just follow demand, but to     for foreign investors is at            Indonesia.

18 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                                                    | 19
Policy perspectives

                                                                                                                                                                                                                                                                     POLICY PERSPECTIVES
                                                                                                                                                                                                                               The upper-dam site for
                                                                                                                                                                                                                               the planned Upper Arun
                                                                                                                                                                                                                               Hydroelectric Project.
                                                                                                                                                                                                                               Credit: CSPDR-SINOTECH JV in
     View from Nepal                                                                                                                                                                                                           association with SOIL TEST.

     Ensuring access to affordable, reliable
     and sustainable energy
                                            Nepal’s government is seeking to attract investment in
                                            the country’s vast hydropower resources, while exploring
                                            regional energy interconnections, as a way of reducing
                                            reliance on fossil fuels, increasing off-grid access, and
                                            reaching middle-income status, writes H.E. Barsha Man
                                            Pun, Minister of Energy, Water Resources and Irrigation.

     In Nepal, after having enabled a                      prospective independent power           solar, and wind as complementary         direct investments in the sector.     electricity trade. We believe
     political environment with a new                      producers. Out of these, around 2.4     to the strengthening and expansion                                             that these developments shall
                                                                                                                                            Over the past couple of years,
     constitution and the formation of                     GW is expected to be online within      of the grid electricity distribution                                           give confidence to prospective
                                                                                                                                            we have accelerated the pace
     government at federal, provincial                     the next four years.                    system.                                                                        developers.
                                                                                                                                            of reforms in the sector. Even
     and local levels, overall economic
                                                           In the energy mix for the year 2016,    The optimum exploitation of              though it has been challenging to     We are working to have a regional or
     development is now the foremost
                                                           the total energy produced was           hydropower resources with seasonal       unbundle the sole public utility in   sub-regional power interconnection.
     priority. The present government’s
                                                           around 13 million tonnes of oil         and daily storage capacities along       the sector, we have been successful   We are signatory to the South
     campaign for a ‘prosperous Nepal
                                                           equivalent (MTOE), out of which the     with the use of locally available        in creating a generation company      Asian Association for Regional
     and happy Nepali’ cannot be
                                                           majority, around 66 per cent, came      renewable energy sources like solar      and a transmission grid company.      Cooperation (SAARC) Framework
     realised without the complete
                                                           from fuel wood. The contribution        and wind will be the key factor for      Seven distribution companies are      Agreement on Energy Cooperation,
     economic transformation of the
     country. Energy, being the key driver
     for economic development, has
                                                           of energy from renewables and
                                                           electricity accounted for little
                                                                                                   a stronger and stable energy mix.
                                                                                                   This will greatly reduce our heavy
                                                                                                                                            now being planned to function
                                                                                                                                            in different provinces. Legal
                                                                                                                                                                                  and also party to the understanding
                                                                                                                                                                                  reached for the establishment
                                                                                                                                                                                                                          In five years, we
                                                           over 6 per cent. For our energy         dependence on imported fossil fuels      instruments are already in place      of the Bay of Bengal Initiative
     become the main area of focus for
     the government. We are committed
                                                           requirement for the year 2050,
                                                           estimated at around 17 MTOE, we
                                                                                                   through substitution with clean and
                                                                                                   renewable energy sources. By the
                                                                                                                                            for the formation of a regulatory
                                                                                                                                            mechanism in the electricity sector
                                                                                                                                                                                  for Multi-Sector Technical and
                                                                                                                                                                                  Economic Cooperation (BIMSTEC)
                                                                                                                                                                                                                          intend to provide
     to adequate energy production and
     supply of electricity to achieve the
     accelerated double-digit growth of
                                                           intend to source 33 per cent of it
                                                           from electricity and renewables
                                                                                                   next ten years, we are planning to
                                                                                                   develop 10,000 MW of generation
                                                                                                                                            through which the Electricity
                                                                                                                                            Regulation Commission will become
                                                                                                                                                                                  Grid Interconnection. Eventually,
                                                                                                                                                                                  such sub-regional or regional           access to 100
                                                           next to 34 per cent from fuel wood      for domestic consumption alone,          functional very soon.                 interconnections should help us to
     the Nepalese economy.
     Nature has bestowed enormous
                                                           and biomass. Thus, we foresee a
                                                           substantial dominance of electricity
                                                                                                   with another 5,000 MW for cross-
                                                                                                   border trading.
                                                                                                                                            One of the basic policies of the
                                                                                                                                            government is to promote private
                                                                                                                                                                                  optimise our power systems and
                                                                                                                                                                                  lower operating costs.                  per cent of the
     hydropower potential, of about                        and renewables in the projected
     83 GW, on us. Of this about 42
     GW is deemed technically and
                                                           energy mix for the target year 2050.
                                                                                                   We have initiated a programme,
                                                                                                   ‘Nepal’s Water - Citizen’s
                                                                                                                                            investments in the power sector. To
                                                                                                                                            that end, we have investor-friendly
                                                                                                                                                                                  We envision Nepal to be an
                                                                                                                                                                                  enterprise-friendly middle-income       population
                                                           The Government of Nepal has set         Investment’, through which we            regulations which treat national      country by 2030. We are populated
     economically feasible. We have
                                                           targets in the power sector for the     aim to mobilise financial resources      and foreign parties on par. We        by a vibrant and youthful middle-
     been able to develop about 1.1
                                                           next ten years. In five years, we       from the public as an equity share       have been successful in opening       class with absolute poverty in the
     GW of installed capacity with a few
                                                           intend to provide access to 100 per     for hydropower development,              up opportunities for accessing        low single digits and decreasing.
     pondage run-of-river projects and
                                                           cent of the population through a        creating opportunities for people’s      neighbouring power markets            Under this overarching vision,
     numerous run-of-river projects.
                                                           mix of grid and off-grid systems. In    participation, and to develop a          beyond our political borders. The     Nepal is continuously pursuing to
     The storage facility of Nepal’s
                                                           the meantime, we are implementing       sense of ownership in hydropower         Power Trade and Transmission          meet, among others, the target of
     power system accounts only for
                                                           several transmission and distribution   development. Investment that can         Interconnection Agreement             Sustainable Development Goal 7
     92 MW. On the brighter side, with
                                                           system reinforcement projects to        be generated within Nepal is limited,    with India and understandings         which deals with ensuring access to
     the encouraging involvement of
                                                           provide reliable electricity services   so is the case for debt as domestic      reached with China as well as         affordable, reliable, sustainable and
     the private sector, around 2.5 GW
                                                           to the people. The government is        lending is inadequate for the            with Bangladesh for cooperation       modern energy for all.
     of installed capacity is actively
                                                           considering distributed electricity     development of larger projects. This     in the power sector have laid
     undergoing construction by
                                                           generation through micro-hydro,         clearly points to the need for foreign   the foundation for cross-border

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Policy perspectives

                                                                                                                                                                                                                                                                           POLICY PERSPECTIVES
                                                                                                                                                                                                                                        Uganda’s President Yoweri
                                                                                                                                                                                                                                        Museveni plants a tree
                                                                                                                                                                                                                                        during an inauguration
                                                                                                                                                                                                                                        ceremony for the Isimba
                                                                                                                                                                                                                                        Hydropower Plant in March
     View from Uganda                                                                                                                                                                                                                   2019. Credit: PA Images.

     Access to electricity is inextricably linked
     to socio-economic transformation
                                            The Government of Uganda is committed to the sustainable
                                            development of its hydropower resources. Like many
                                            countries in Africa however, Uganda faces challenges in
                                            raising investment capital and enhancing local technical
                                            and management capacity, writes Honourable Minister of
                                            Energy and Mineral Development Irene Nafuna Muloni.

     Access to clean energy in general                     hydropower dates back to 1947          Additionally, hydropower is sensitive
     and electricity in particular is an                   with the first two hydropower plants   to the climate driven hydrological      Authority (NEMA) is in place to         Kiba (290 MW). Regarding small           for the past 65 years and has the
     essential input in the growth and                     being commissioned in 1954 – the       cycle thus necessitating proper         ensure that resettlement and            hydropower projects, the current         lowest tariff in the energy mix.
     economic, social and political                        Owen Falls plant, now Nalubaale,       management of the river catchment       environmental issues are well           policy is that their development
                                                                                                                                                                                                                           Therefore, for Uganda to achieve
     development of a country.                             with a capacity of 150 MW, and         areas. The prolonged drought            addressed during the development        is undertaken by the private
                                                                                                                                                                                                                           sustainable development, the
     Electricity is inextricably linked to                 Mobuku I with a capacity of 5 MW       experienced in Uganda between           of these projects.                      sector. The Renewable Energy
                                                                                                                                                                                                                           hydropower resources that remain
     socio-economic transformation at                      which was to supply electricity        2003 and 2007 led to a decline in                                               Feed-in Tariffs (REFiT) are in place
                                                                                                                                          To ensure that we develop                                                        untapped will have to be developed
     individual household and business                     to the copper mines of Kilembe         hydropower generation of over 60                                                to promote investment in small
                                                                                                                                          our hydropower resources in                                                      so as to bring to fruition plans
     levels, as well as at aggregate                       in western Uganda. Over the last       per cent, thus necessitating the                                                hydropower and other renewable
                                                                                                                                          a sustainable manner, in 2010                                                    aimed at increasing access to
     national level.                                       three decades, there has been          deployment of expensive thermal                                                 power projects.
                                                                                                                                          the government undertook a                                                       electricity and per capita electricity
                                                           significant growth of power demand     power to reduce load shedding
     As a critical input in the                                                                                                           hydropower development master           The current contribution of              consumption, and to contribute to
                                                           in Uganda, averaging 8 per cent per    which had negatively impacted our
     development process, electricity                                                                                                     plan study. The study targeted sites    hydropower in Uganda’s electricity       the achievement of the Sustainable
                                                           annum. The majority of this demand     economic growth.
     consumption has multiplier effects                                                                                                   above 50 MW mainly along the River      generation mix is 87 per cent. This      Development Goals.
                                                           has been met by the construction of
     on the economy. For a country                                                                To address the challenge of             Nile. The objective of the study was    figure will go up to 92 per cent
                                                           additional hydropower generating
     to have adequate and reliable                                                                financing, the Government of            to prepare a master plan that is in     once Karuma is commissioned.
                                                           plants which included: the
     electricity supply that matches                                                              Uganda put in place an Energy           line with the long-term power and       Hydropower is a key component
                                                           refurbishment of Owen Falls dam
     demand, it calls for deliberate                                                              Investment Fund which enabled           transmission development plan. The      in electricity generation expansion
     policies and efforts to plan and
     develop electricity generation
                                                           and increasing its capacity to 180
                                                           MW, and the development of Kiira
                                                           (200 MW), which was commissioned
                                                                                                  us to commence the construction
                                                                                                  of Bujagali hydropower plant as
                                                                                                                                          hydropower master plan prioritised
                                                                                                                                          potential hydropower sites based on
                                                                                                                                                                                  plan in line with our Vision 2040
                                                                                                                                                                                  strategy.
                                                                                                                                                                                                                           Hydropower
     capacity based primarily on national                                                         we awaited financial closure. The       technical, environmental, economic
     natural energy resources.
                                                           in 2000, Bujagali hydropower plant
                                                           (250 MW), commissioned in 2012,
                                                                                                  250 MW Bujagali hydropower plant
                                                                                                  was developed under a public-
                                                                                                                                          and financial aspects, to prepare
                                                                                                                                          preliminary designs thereof, and to
                                                                                                                                                                                  There is still over 2,000 MW of
                                                                                                                                                                                  hydropower that is yet to be             will continue to
     According to the International                        and a number of small hydropower                                                                                       developed. Hydropower will
     Energy Agency’s World Energy
     Outlook report of 2018, hydropower
                                                           projects totalling 107 MW.
                                                           The key challenges for hydropower
                                                                                                  private—partnership arrangement
                                                                                                  with Bujagali Energy Limited (BEL).
                                                                                                  The plant tremendously reduced
                                                                                                                                          build government capacity in this
                                                                                                                                          field.
                                                                                                                                                                                  therefore continue to play a
                                                                                                                                                                                  critical role in providing electricity
                                                                                                                                                                                                                           play a critical
     is the largest renewable electricity                                                                                                 In line with the hydropower master      in Uganda in the medium term
     generation resource, meeting about
     16 per cent of global electricity
                                                           development in Uganda, and
                                                           most countries in Africa, include
                                                                                                  our reliance on expensive thermal
                                                                                                  power. Additional investment capital
                                                                                                                                          plan, the government is fast-tracking
                                                                                                                                          the development of the identified
                                                                                                                                                                                  because of a number of benefits,
                                                                                                                                                                                  such as its proven technology,
                                                                                                                                                                                                                           role in providing
                                                           the need for substantial up-front      has been attracted through bilateral
     demand, followed by wind, solar
     PV and bio-energy. This trend
                                                           investment capital which cannot
                                                           easily be raised by the sector, as
                                                                                                  financing with our development
                                                                                                  partners. The challenge of
                                                                                                                                          hydropower sites. We are currently
                                                                                                                                          implementing two key flagship
                                                                                                                                                                                  high efficiency, low operation and
                                                                                                                                                                                  maintenance costs, high flexibility,     electricity in
     is expected to continue in the                                                                                                       hydropower projects namely, Isimba      ability to be designed with a
                                                           well as environmental and social       inadequate technical capacity has
     medium term which therefore
     calls for sustainable development
                                                           concerns such as the resettlement
                                                           and compensations of persons
                                                                                                  been addressed by putting in place
                                                                                                  a local content policy to ensure the
                                                                                                                                          (183.2 MW) and Karuma (600 MW).
                                                                                                                                          Other large hydropower plants
                                                                                                                                                                                  large storage capacity to cater for
                                                                                                                                                                                  peak time demand, and due to its         Uganda
     and utilisation of the hydropower                                                                                                    being packaged for development          high reliability. For example, the
                                                           affected by the projects, and          participation of Ugandans during
     resource.                                                                                                                            include Ayago (840 MW), Orianga         Nalubaale hydropower project has
                                                           inadequate local implementation        construction of the projects. The
                                                                                                                                          (392 MW), Uhuru (350 MW) and            been providing electricity to Uganda
     For Uganda, the development of                        experience and technical capacity.     National Environment Management

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Policy perspectives

                                                                                                                                                                                                                                                                       POLICY PERSPECTIVES
                                                                                                                                                                                                                                    The Salto Grande
                                                                                                                                                                                                                                    Hydroelectric Complex on
                                                                                                                                                                                                                                    the Uruguay River between
                                                                                                                                                                                                                                    Argentina and Uruguay.
     View from Uruguay

     The role of hydropower in the commitment
     to sustainable development
                                            Almost 100 per cent of Uruguay’s electricity is generated from
                                            hydropower and other renewable resources. Hydropower’s
                                            role is not just historic, writes Honourable Minister of Industry,
                                            Energy and Mining Dr Guillermo Moncecchi, it will continue
                                            to provide a platform to develop non-conventional renewables
                                            and achieve sustainable development.

     Although the discussion between                       effectively operative, this indicator    power generation capacity (in fact       surplus of renewable generation         small-scale hydroelectric plants is
     historians and linguists over                         exceeds 85 per cent in the case of       internationally, Denmark, Uruguay,       opens additional opportunities          not only compliant with the United
     whether the country´s name in                         Uruguay. All of the above shows          Portugal and Ireland, in that order,     to the decarbonisation of other         Nations’ Sustainable Development
     guaraní, Uruguay, refers to the                       that Uruguay has developed its           have the largest share of wind           sectors of the economy in which         Goal (SDG) 7, but also responds
     ‘river of snails’ or the ‘river of birds’             hydroelectric resource at an early       resource in the electricity mix). In     it is more challenging to achieve       to the water-food-energy nexus
     is not settled, there is no doubt
     that etymologically, the name of
                                                           stage, practically reaching its
                                                           large-scale operation capacity. As a
                                                                                                    addition, generation capacities from
                                                                                                    biomass and photovoltaic solar are
                                                                                                                                             transformation.                         initiative through the promotion of
                                                                                                                                                                                     new multi-purpose power plants
                                                                                                                                                                                                                              Hydroelectric
                                                                                                                                             Between 2014 and 2017, a study was
     this country shows a close link to                    consequence, its historical electric     developed.                                                                       destined for irrigation crops and
     the natural resource water. This
     link has a technical correlation, the
                                                           mix presents sustainability indicators
                                                           that are more than satisfactory in
                                                                                                    As a result of this process, today
                                                                                                                                             conducted on the complementarity
                                                                                                                                             of renewable sources and the
                                                                                                                                                                                     drinking water for consumption
                                                                                                                                                                                     by the population, which also
                                                                                                                                                                                                                              power in
                                                                                                    our country shows with satisfaction      demand for electrical energy,
     first hydroelectric plant in South
     America, Cuñapirú Dam, was
                                                           international terms.
                                                           However, the impact of hydroelectric
                                                                                                    that, in average terms in the last
                                                                                                    years, 98 per cent of electric energy
                                                                                                                                             which evidenced, on one hand, a
                                                                                                                                             strong complementarity between
                                                                                                                                                                                     include the possibility of electricity
                                                                                                                                                                                     generation. The implementation of        Uruguay has
     inaugurated in 1882 in association                                                                                                                                              these new ventures does not only
                                                           generation on the sustainability         has come from renewable sources          hydroelectric and solar resources.
     with a mining enterprise in Uruguay,
     and kept in operation until 1918.
                                                           of the Uruguayan electricity mix
                                                           does not end there, but presents
                                                                                                    and 99.8 per cent of the population
                                                                                                    has access to electric power. The
                                                                                                                                             On the other hand, it identified that
                                                                                                                                             by managing energy storage or
                                                                                                                                                                                     improve the sustainability of the
                                                                                                                                                                                     energy sector, but also responds         not only had a
                                                                                                                                                                                     to the need for adaptation of a key
     At the beginning of the twentieth
     century, Uruguay reinforced this
                                                           two additional dimensions. On
                                                           one hand it is the base on which,
                                                                                                    share of hydroelectric energy in
                                                                                                    the electric mix is approximately
                                                                                                                                             demand it is possible to eliminate
                                                                                                                                             or significantly reduce the inclusion
                                                                                                                                                                                     sector of our economy in a country
                                                                                                                                                                                     that, with 3.5 million inhabitants,
                                                                                                                                                                                                                              relevant role in
     commitment, commissioning                             more recently, Uruguay has carried       50 per cent in an average year,          of new thermal generation plants
                                                                                                                                                                                                                              the past, but also
                                                                                                                                                                                     produces food for more than 30
     studies that concluded with the                       out a very dynamic incorporation         which complements 27 per cent of         in the next 30 years. Among other
                                                                                                                                                                                     million people in the world.
     construction, around the middle of                    of sources of non-conventional           electricity generated from wind, 18      technological alternatives that
     the century, of three hydroelectric                   renewable energies. On the other         per cent from biomass, 3 per cent        could contribute to reach this          In short, hydroelectric power
     plants. Those generation plants,
     together with the implementation
                                                           hand, the construction of the
                                                           binational power plant has been
                                                                                                    from solar power and approximately
                                                                                                    2 per cent from thermal power
                                                                                                                                             objective, are pumped storage
                                                                                                                                             power plants. Uruguay is currently
                                                                                                                                                                                     in Uruguay has not only had a
                                                                                                                                                                                     relevant role in the past, ensuring
                                                                                                                                                                                                                              in the present
     of a binational dam with Argentina,                   the driver for the development           plants using fossil fuels.               working actively in the assessment      the sustainability of the electricity
     have allowed Uruguay to be among                      of regional interconnection                                                       of alternatives aimed at the            mix, but also in the present, acting
                                                                                                    Simultaneously, Uruguay has
     a group of countries with both                        infrastructure, a very valuable                                                   accumulation and management             as a platform to develop non-
                                                                                                    changed the role that it traditionally
     the largest installed capacity and                    component to progress in                                                          of demand. It advanced in the           conventional renewable energies,
                                                                                                    occupied in the region as an
     hydroelectric generation per capita                   the integration of other non-                                                     identification of potentially useable   redoubling the commitment to
                                                                                                    energy sink, and since 2013 it has
     in the region.                                        manageable sources of renewable                                                   sites in the medium term for the        comply with the SDGs.
                                                                                                    continued without interruption to
                                                           generation.                                                                       location of plants that allow for the
     Recent studies carried out by the                                                              be a net exporter of electricity to
                                                                                                                                             daily variability of energy demand.
     Latin American Energy Organization,                   Thus today, Uruguay, based on            Argentina and Brazil. Additionally,
     OLADE, show that, while at a Latin                    the execution of its energy policy,      in the short term, the possibility       In this context, our commitment to
     American level 25 per cent of                         presents a ratio of approximately        of advancing the electrification         the future of the development of
     potential generation capacity is                      1:1 between hydroelectric and wind       of other uses by orienting a

24 | International Hydropower Association | Hydropower Status Report 2019                                                                                                                                                                                       | 25
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