Small Hydropower Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 2.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Small Hydropower Market Analysis
The Small Hydropower Market is expected to register a CAGR of 2% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently the market has reached pre-pandemic levels.
- Over the medium term, factors like increasing investment in the small hydropower market and increasing demand for electricity are expected to drive the market.
- On the other hand, an unstable energy supply significantly hinders the market growth.
- Nevertheless, integrating IoT with hydropower and the positive outlook toward small hydropower dams to sustain lives in rural communities are expected to create enormous opportunities for the Small Hydropower Market.
- Asia-Pacific is expected to be the largest market in the forecast period due to the high demand for electricity in the region and rapidly developing technology in the segment. It is expected to facilitate further growth.
Small Hydropower Market Trends
This section covers the major market trends shaping the Small Hydropower Market according to our research experts:
The 1-10 MW Segment Expected to Dominate the Market
- During the forecast period, the 1-10 MW segment is expected to be the most abundant small hydropower market in capacity. This higher proportion of 1-10 MW plants (nearly 80%) can be attributed to small-scale decentralized projects for rural electrification deployed in developing countries, particularly in Asia.
- The Asia Pacific region dominated the 1-10 MW category of the small hydropower market, with India and China accounting for most installations. These countries' increasing investments in rural electrification increase the market for small hydropower.
- Developing economies, such as India, and China, regions in Southeast Asia and Uzbekistan, and countries in Europe, like Norway, are giving equal priority to small hydropower projects along with other renewable energy sources.
- Additionally, the installed capacity of hydropower increased by 8% between 2017 and 2021. In 2021 the installed capacity was at 1360 GW compared to 1270.8 GW in 2017. Small hydropower holds a considerable share in the before-mentioned installed capacity. This increase in growth rate is expected to continue during the forecasted period.
- For small hydropower projects (1-10 MW), the weighted average Levelized cost of energy (LCO for new projects in 2022 ranged between Brazil and China was USD 0.080/kWh, USD 0.120/kWh in Europe USD 0.040/kWh, around North America and. Smaller hydropower ventures (1-10 MW) had the weighted average LCOE for new sites extend between USD 0.130/kWh in Europe, USD 0.040/kWh in China, and 0.060/kWh in India and Brazil.
- For instance, in January 2022, Statkraft commissioned two small hydropower plants in Norway with a total installed capacity of 8.5 MW Vesle Kjela power plant and the 8.5 MW Storlia power plant. The Vesle Kjela plant is located at the top of the Tokke/Vinje regulated watercourse and uses the head from the regulated Kjelavatn Lake in the Haukelifjell mountain area. The Storlia plant uses a head of 75 m between the Bjoreio River and Sysenvatn Lake in the municipality of Eidfjord as part of the Sima regulation.
- Therefore, based on the abovementioned factors, the 1-10 MW capacity segment is expected to dominate the small global hydropower market during the forecast period.
Asia-Pacific Expected to Dominate the Market
- The Asia-Pacific region has dominated the small hydropower (SHP) market in recent years and is likely to maintain its dominance during the forecast period. As of 2021, Asia-Pacific continues to have the largest installed capacity and potential for small hydropower up to 10 MW.
- Major countries such as India and China are giving equal priority to small hydropower projects along with other renewable energy sources. For instance, India has set a national target of achieving 5 GW of small hydropower capacity by 2022, under overall targets of achieving a cumulative grid-connected renewable energy capacity of 175 GW. The country has already installed 4.8 GW of small hydropower capacity by the end of 2021.
- Furthermore, Vietnam published Power Development Plan 8 (PDP8) in 2021, which targets a share of 75% for renewable energy by 2045. The total capacity of small hydropower sources is targeted to reach 4,800 MW in 2025, 5,000 MW in 2030, and nearly 6,000 MW by 2045. The government plans to invest USD 12-13 billion in the power sector, and hydropower would account for 17.7% -19.5% of the total installed capacity. The total installed capacity for the whole power system will come to around 130,370-143,839 MW by 2030.
- For instance, in April 2022, Flovel Energy announced the signing of the contract for Nam Tang 3 HPP (2 x 8.75 MW) in Vietnam with Horizontal Francis units. Truong Thanh Investment Construction Company Limited is developing the project. Nam Tang 3 Hydro Project is located in Yen Bai Province, Vietnam, and is the company's eighth Project in the Yen Bai province.
- Therefore, based on the above-mentioned factors, Asia-Pacific is expected to dominate the global small hydropower market during the forecast period.
Small Hydropower Industry Overview
The global small hydropower market is fragmented. Some major players (in no particular order) include Andritz AG, Voith GmbH & Co. KGaA, Siemens Energy AG, GE Renewable Energy, and Gilbert Gilkes & Gordon Ltd.
Small Hydropower Market Leaders
Andritz AG
Voith GmbH & Co. KGaA
Siemens Energy AG
GE Renewable Energy
Gilbert Gilkes & Gordon Ltd.
*Disclaimer: Major Players sorted in no particular order
Small Hydropower Market News
- July 2022: SMEC was hired by KPower Engineering Sdn Bhd (KPEng), together with Tellhow International Engineering & Contracting Co Ltd, to review the design and propose modifications required for three small hydropower plants in East Malaysia. The three hydropower projects at Sungai Bengkoka Upper, Sungai Bengkoka Lower, and Sungai Togohu in Kota Marudu, Sabah, had a planned capacity totaling 29.1 MW. The consortium had taken over from the previous contractor to complete the engineering, design, procurement, construction, and commissioning works, and ORP, a subsidiary of OHP Ventures Sdn Bhd, owns the project.
- July 2022: The Development Bank of the Philippines (DBP) approved USD 12.0 million in funding to support the development of the 4.6 MW Dupinga Mini Hydropower project in Gabaldon, Nueva Ecija, in the Philippines. The DBP's funding for the Dupinga Project helps the government reach its 30% renewable energy goal by 2030.
Small Hydropower Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Installed Capacity and Forecast in GW, till 2028
4.3 Small Hydropower Installed Capacity Share, by Major Region, 2021
4.4 Projects in Pipeline and Upcoming Small Hydropower Projects
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitute Products and Services
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Capacity
5.1.1 Up to 1 MW
5.1.2 1-10 MW
5.2 Application
5.2.1 Power Infrastructure
5.2.2 Civil Works
5.2.3 Other Applications
5.3 Geography [Market Size and Demand Forecast till 2028 (for regions only)]
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 France
5.3.2.3 Italy
5.3.2.4 Norway
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 South Korea
5.3.3.4 Japan
5.3.3.5 Rest of Asia-Pacific
5.3.4 Middle East and Africa
5.3.4.1 Iran
5.3.4.2 Ethipoia
5.3.4.3 South Africa
5.3.4.4 Rest of Middle East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Chile
5.3.5.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Voith GmbH & Co. KGaA
6.3.2 Andritz AG
6.3.3 GE Renewable Energy
6.3.4 Siemens Energy AG
6.3.5 Gilbert Gilkes & Gordon Ltd.
6.3.6 Toshiba Energy Systems & Solutions Corporation
6.3.7 PJSC RusHydro
6.3.8 FLOVEL Energy Private Limited
6.3.9 Natel Energy, Inc.
6.3.10 Kolektor Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Small Hydropower Industry Segmentation
Small hydropower is the development of hydroelectric power on a scale suitable for local communities and industries or to contribute to distributed generation in a regional electricity grid. Small hydropower projects generate electricity capacity less than or equal to 10 MW.
The Small Hydropower Market is segmented by Capacity, Application, and Geography. By capacity, the market is segmented into Up to 1 MW and 1-10 MW. By application, the market is segmented into Power Infrastructure, Civil Works, and Other Applications. The report also covers the market size and forecasts for the small hydropower market across major countries. For each segment, the market sizing and forecasts have been done based on installed capacity in gigawatts (GW).
| Capacity | |
| Up to 1 MW | |
| 1-10 MW |
| Application | |
| Power Infrastructure | |
| Civil Works | |
| Other Applications |
| Geography [Market Size and Demand Forecast till 2028 (for regions only)] | |||||||
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Small Hydropower Market Research FAQs
What is the current Small Hydropower Market size?
The Small Hydropower Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)
Who are the key players in Small Hydropower Market?
Andritz AG, Voith GmbH & Co. KGaA, Siemens Energy AG, GE Renewable Energy and Gilbert Gilkes & Gordon Ltd. are the major companies operating in the Small Hydropower Market.
Which is the fastest growing region in Small Hydropower Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Small Hydropower Market?
In 2024, the Asia-Pacific accounts for the largest market share in Small Hydropower Market.
What years does this Small Hydropower Market cover?
The report covers the Small Hydropower Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Small Hydropower Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Small Hydropower Industry Report
Statistics for the 2024 Small Hydropower market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Small Hydropower analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
