Southeast Asia Hydropower Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 7.90 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Southeast Asia Hydropower Market Analysis
The Southeast Asian hydropower market is expected to reach 52.722 GW by the end of the current year, and it is projected to register a CAGR of 7.9% during the forecast period.
Although the market studied was affected by the COVID-19 pandemic in 2020, it has been recovering and reached pre-pandemic levels. Factors such as increasing investments in hydropower plants and increasing demand for renewable energy are expected to drive the market's growth. However, the high initial cost of hydropower compared to other forms of renewable energies like solar and wind energy is expected to restrain the growth of the market studied. The technological advancements in efficiency and decrease in the production cost of hydropower projects are expected to create ample opportunity for market players in Southeast Asia.
Vietnam is expected to be the largest market for the region's hydropower market due to increasing investment in the sector and the highest installed capacity of hydropower energy in the region.
Southeast Asia Hydropower Market Trends
This section covers the major market trends shaping the Southeast Asia Hydropower Market according to our research experts:
Large Hydropower to Dominate the Market
Large-scale hydropower plant uses flowing water to drive huge water turbines to generate renewable energy. To generate significant amounts of hydroelectricity, lakes, reservoirs, and dams are required to store and regulate water for later release for power generation, irrigation, domestic use, and industrial use. Large-scale hydropower plants can be classified into four types: conventional hydroelectric dams, pumped storage, run-of-the-river, and tidal. Although large hydropower plants are expensive to install, they produce electricity at a low cost, especially in large cities. According to the International Renewable Energy Agency, the global weighted average levelized cost of energy (LCOE) of newly commissioned hydropower projects in 2021 was USD 0.048/kWh.
In Southeast Asia, hydropower dominates the renewable energy industry. The region recorded a hydropower project installed capacity of 35.895 GW in 2020, which increased to 37.445 GW in 2022, registering a growth of 4%. In accordance with the Laos Power Development Plan 2020 -2030, the Laos hydropower capacity is expected to exceed 14 gigawatts by 2025. By 2025, renewable energy may represent 30% of the total energy mix, and hydropower is anticipated to be a major component of this growth.
As part of the Association of Southeast Asian Nations (ASEAN) Plan of Action for Energy Cooperation (APAEC) 2021-2025, the aim is to reach 35% renewable generation in installed power capacity by 2025, which may require the deployment of 35-40GW. In December 2021, LNT & Partners assisted Dakdrinh Hydropower JSC in obtaining USD 95 million in loan financing from the Asian Infrastructure Investment Bank (AIIB) and Natixis Bank for the 125 MW Dakdrinh Hydropower Plant Project, Vietnam. The funds are going to be used to refinance existing debt on Dakdrinh Hydropower's 125MW hydropower plant.
In March 2022, International technology Group ANDRITZ and the Electricity Generating Authority of Thailand (EGAT) signed an MoU to jointly explore and expand business opportunities for hydropower projects in Thailand and surrounding countries. Due to the above-mentioned factors, the sizeable hydropower segment is expected to drive the market's growth during the forecast period.
Vietnam is Expected to Dominate the Market
Vietnam is one of the largest hydropower markets in Southeast Asia. According to the Electricity Authority of Vietnam (EVN), as of 2022, Vietnam had 20.774 GW of hydropower, accounting for nearly 29.9% of the country's total installed capacity. The consumption of hydroelectricity in the country increased from 0.55 exajoules in 2015 to 0.71 exajoules, which is a significant growth.
Hydropower has accounted for a significant share of the country's gross electricity generation mix, accounting for nearly 30.77% of the country's total electricity generation. The Vietnamese economy relied heavily on hydroelectricity to satiate domestic demand. However, as domestic demand increased rapidly, the share of coal-fired generation in electricity rose, along with other renewables, which have also grown at a steady pace but occupy a relatively smaller share of the total electricity generation mix.
Due to its traditional dependence on hydroelectricity, Vietnam has already developed nearly 60% of its total hydropower potential, making it a mature hydropower market. According to the Vietnam Energy Outlook 2021, the country is close to fully utilizing its potential for large-scale and medium-scale hydropower (defined as greater than 30 MW and typically with a connected reservoir). However, there is still untapped potential for run-of-river small-scale hydro of around 11 GW.
Despite this, as the government tries to deal with the growing power demand, which is projected to grow by nearly 6-7% during 2021-2030 while realizing its emission reduction targets, the Vietnam government is investing in the development of the remaining large-scale hydro potential in the country. For instance, in November 2021, the Vietnam Electricity (EVN) group and the French Development Agency (AFD) signed a loan agreement worth USD 81 million for the expansion of the Hoa Binh Hydropower Plant Project. A total of USD 406.7 million is being invested in this project, which includes two turbines with a combined capacity of 480MW. In April 2022, Flovel Energy signed the contract for Nam Tang 3 HPP (2 x 8.75 MW) in Vietnam with Horizontal Francis units. The project is being developed by Truong Thanh Investment Construction Company Limited. Nam Tang 3 Hydro Project is located in Yen Bai Province, Vietnam, and this is the company's eighth project in Yen Bai province.
Due to the above-mentioned factors, Vietnam is expected to dominate the market studied during the forecast period.
Southeast Asia Hydropower Industry Overview
The Southeast Asian hydropower market is moderately fragmented in nature. Some of the key players in this market (in no particular order) are Vietnam Electricity Construction JSC, Electricity Generating Authority of Thailand, PT Perusahaan Listrik Negara, Tenaga Nasional Berhad, and Andrtiz AG.
Southeast Asia Hydropower Market Leaders
Vietnam Electricity Construction JSC
Tenaga Nasional Berhad
Andrtiz AG
PT Perusahaan Listrik Negara
Electricity Generating Authority of Thailand
*Disclaimer: Major Players sorted in no particular order
Southeast Asia Hydropower Market News
- In September 2022, a contract was signed between Vietnam Electricity (EVN) and Andritz for the supply of complete electro-mechanical equipment and technical services needed for the extension of the Ialy hydropower plant located in Sa Thay district, Kon Tum province and Chu Pah district, Gia Lai province. By completing the expansion project, the Ialy hydropower plant will be able to increase its installed capacity by 30% to 1080 MW, which is anticipated to be completed by 2025. Andritz will supply two 180MW Francis turbine units, two 211 MVA synchronous generators, control and protection systems, and additional auxiliary equipment and associated technical services.
- In July 2022, the Development Bank of the Philippines (DBP) approved PHP 660 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.
Southeast Asia Hydropower Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Hydropower Installed Capacity and Forecast in GW, till 2027
4.3 Renewable Energy Mix, 2021
4.4 List of Major Upcoming Hydropower Projects, By Major Countries, Southeast Asia
4.5 List of On-going and Upcoming Hydropower Tenders, Southeast Asia
4.6 List of Major Hydropower Consulting Companies and Consortiums, Southeast Asia
4.7 Recent Trends and Developments
4.8 Government Policies and Regulations
4.9 Market Dynamics
4.9.1 Drivers
4.9.2 Restraints
4.10 Supply Chain Analysis
4.11 Porter's Five Forces Analysis
4.11.1 Bargaining Power of Suppliers
4.11.2 Bargaining Power of Consumers
4.11.3 Threat of New Entrants
4.11.4 Threat of Substitutes Products and Services
4.11.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Large Hydropower
5.1.2 Small Hydropower
5.1.3 Pumped Storage
5.2 By Geography
5.2.1 Vietnam
5.2.2 Indonsia
5.2.3 Malaysia
5.2.4 Laos
5.2.5 Philippines
5.2.6 Thailand
5.2.7 Rest of Southeast Asia
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 Vietnam Electricity Construction JSC
6.3.2 Andritz AG
6.3.3 Electricity Generating Authority of Thailand
6.3.4 PT Perusahaan Listrik Negara
6.3.5 Tenaga Nasional Berhad
6.3.6 Toshiba Corporation
6.3.7 General Electric Company
6.3.8 Aboitiz Power Corporation
6.3.9 Power Construction Corporation of China Ltd
- *List Not Exhaustive
6.4 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Southeast Asia Hydropower Industry Segmentation
Hydropower, or hydroelectric power, is one of the largest and oldest renewable energy sources, which uses the natural flow of moving water to generate electricity. Hydropower technologies generate electricity by the elevation difference created by a dam or diversion structure between water flowing in one direction and out in the other direction.
The Southeast Asian hydropower market is segmented by type and geography. By type, the market is segmented into large hydropower, small hydropower, and pumped storage. The report also covers the installed capacity and forecasts for the Southeast Asian hydropower market across the major countries. The installed capacity and forecasts for each segment have been considered in Gigawatts (GW).
| By Type | |
| Large Hydropower | |
| Small Hydropower | |
| Pumped Storage |
| By Geography | |
| Vietnam | |
| Indonsia | |
| Malaysia | |
| Laos | |
| Philippines | |
| Thailand | |
| Rest of Southeast Asia |
Southeast Asia Hydropower Market Research FAQs
What is the current Southeast Asia Hydropower Market size?
The Southeast Asia Hydropower Market is projected to register a CAGR of 7.90% during the forecast period (2024-2029)
Who are the key players in Southeast Asia Hydropower Market?
Vietnam Electricity Construction JSC, Tenaga Nasional Berhad, Andrtiz AG, PT Perusahaan Listrik Negara and Electricity Generating Authority of Thailand are the major companies operating in the Southeast Asia Hydropower Market.
What years does this Southeast Asia Hydropower Market cover?
The report covers the Southeast Asia Hydropower Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Southeast Asia Hydropower Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Southeast Asia Hydropower Industry Report
Statistics for the 2024 Southeast Asia Hydropower market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Southeast Asia Hydropower analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
