Advanced technologies will add efficiency to small hydropower plants

 

Based on the scale of the project, hydropower projects are typically classified into large and small hydropower projects. Although the criteria are likely to vary in different regions of the world, hydro projects with a capacity ranging from 10 MW to 50 MW are considered to be small hydropower projects. Due to increasing environmental concerns and demand for sustainable energy production, governments across the world are primarily focusing on increasing investments toward the development of sustainable energy generation projects. In addition, governments in both developed as well developing regions are encouraging small hydropower projects by offering lucrative incentives and project renewal plans– a factor that is expected to aid the growth of the global small hydropower market during the forecast period.

Rising demand for sustainable energy to boost the market growth
At present, stakeholders operating in the current small hydropower market landscape are highly inclined toward investing in mitigation and research projects to minimise the negative environmental effects of damns on the river flow, fish habitat, and quality of water. In addition, the favourable financial framework is enabling more private sector companies to participate in the renewable energy production ecosystem– another factor that is expected to bolster the growth of the global small hydropower market during the assessment period.

Small Hydropower Plants Gain Popularity as Large-scale Projects Continue to Attract Criticism

Analysts’ Viewpoint

The global small hydropower market is expected to grow at a moderate CAGR of ~3 per cent during the forecast period. The market growth will be largely driven by the ascending demand for sustainable energy, mounting environmental concerns, rising pollution levels around the world, and the benefits of hydropower over other alternatives. Moreover, an increase in government, as well as private investments toward the development of small hydropower projects, is another major factor that will provide a boost to the growth of the small hydropower market during the assessment period. However, market players should focus on minimising the impact of small hydropower projects on the surrounding environment and seek new ways to reduce the displacement of the large human population. 70