A new report from the International Hydropower Association reveals strong global momentum for hydropower development, led by a sharp rise in pumped storage hydro (PSH).
The 2025 World Hydropower Outlook, which was published today, reveals that hydropower remains the world’s largest source of renewable electricity, supplying 14.3% of global power and supporting power system flexibility in more than 150 countries.
A total of 24.6GW of new hydropower capacity was added globally in 2024, while hydropower generation jumped by 10% to 4578TWh in 2024, rebounding strongly from drought-affected lows the previous year.
Global capacity additions included 8.4GW of PSH, a 5% increase in global PSH capacity to 189GW, signalling an accelerating trend.
Annual PSH additions have nearly doubled in the past two years, raising the five-year average to 6GW per year, up from 2-4GW across the previous two decades.
By the end of 2024, the global hydropower development pipeline exceeded 1075GW (an increase of approximately 8%), including approximately 600GW of PSH and 475GW of conventional projects, the report revealed.
The IHA said this growth reflects both the rising momentum behind electricity storage and the enduring importance of conventional hydropower in building low-carbon energy systems.
Based on typical project timelines, most of the under-construction capacity is expected to be commissioned by 2030.
Despite positive trends, the sector faces a potential shortfall of 60-70GW by 2030 against the International Renewable Energy Agency’s hydropower target in its “tripling renewables” scenario. Accelerated project approvals and financing will be critical to closing the gap.
IHA president Malcolm Turnbull said: “Encouragingly, this year’s World Hydropower Outlook shows that global new capacity is accelerating after several years of stagnation.
“With increased solar and wind power on the grid, hydropower plays an increasingly vital role in the global energy transition. But markets alone won’t deliver what is needed. Continued momentum will require bold policy action, including reforms to reward hydropower’s multiple benefits, and faster permitting. The only resource we lack is time.”
Figures for 2024 show that China, Tanzania, Ethiopia, Bhutan and Pakistan were the top five countries for new installed hydropower capacity in 2024.
China remained at the forefront of new development, adding 14.4GW of hydropower capacity in 2024. More than half of this capacity was pumped storage, putting the country on track to exceed its 120GW PSH target by 2030.
Europe saw a landmark year for renewables in 2024, with frequent monthly peaks where hydropower, wind and solar led the EU power mix. Driven by exceptional rainfall, hydropower output surged to a decade-high of 680TWh, underscoring its critical role alongside wind and solar.
In 2024 the global hydropower workforce was over 2.3 million, while the amount of hydropower generated was equivalent to 10 times the total electricity consumption of France.