IEA calls on "forgotten giant" hydropower to meet net-zero goals

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Investment in hydropower could be one of the keys to meeting the global net-zero goals to allow for greater expansion of solar and wind power, the International Energy Agency (IEA) has claimed.

The growth of hydropower is set to slow by as much as 25% throughout the decade without focused and sweeping policy changes and pushes for investment, which could allow for cheaper and cleaner energy for the general population.

Read more: Radical change needed en route to net-zero, IEA warns

The IEA has already called for a more radical change in the way the world thinks about energy. It has called for a complete stop of new oil and gas projects in order for energy companies to divert the necessary attention in making renewables viable.

Fatih Birol, the IEA's executive director, referred to hydropower as a "forgotten giant" and considers hydropower investment critical for the energy transition owing to its "flexibility" and "ease of storage."

"[Hydropower] needs to be put squarely back on the energy and climate agenda if countries are serious about meeting their net-zero goals,” he said.

“It brings valuable scale and flexibility to help electricity systems adjust quickly to shifts in demand and to compensate for fluctuations in supply from other sources," he added.

Global hydropower capacity is expected to increase by 17% between 2021 and 2030 – led by China, India, Turkey and Ethiopia - according to another report from the firm. However, growth will still be 25% slower when compared to previous decades.

Hydropower provided one-sixth of global energy generation in 2020, according to the IEA, making it the single largest non-carbon energy source and more than all other sources of renewable energy combined, representing a significant market.

Its output has increased 70% over the past two decades, but its share of the global electricity supply has held steady because of the increases in wind, solar PV, natural gas and coal.

Read more: Gas prices at 13-year high in Europe as Russia curbs supply

Hydropower currently meets the majority of electricity demand across 28 different emerging and developing economies, which have a total population of 800 million.

The IEA claims many of the pitfalls that traditionally hamper the application of renewable energy, such as slow uptake, lack of development and issues of economic viability, must be overcome in order for it to work as a source.

Most importantly of all, new hydropower ventures must provide long-term visibility on revenues and remain attractive for potential investment.

Birol said: "Hydropower’s advantages can make it a natural enabler of secure transitions in many countries as they shift to higher and higher shares of solar and wind – provided that hydropower projects are developed in a sustainable and climate-resilient way.

"Based on today’s policy settings, China is set to remain the single largest hydropower market through 2030, accounting for 40% of global expansion, followed by India."

The IEA's report lays out seven key priorities for governments looking to accelerate the development of hydropower in the modern energy market, including long-term pricing structures and standardisation to ensure all future projects meet the same levels of quality.

Birol claims global hydropower capacity could increase by as much as 40% through 2030 should existing barriers be removed by unblocking existing pipelines.

Read more: 1m deaths in 2017 attributed to fossil fuel air pollution, research suggests

However, he warned that governments would still need significant investments in any future projects in order to align with the 2050 net-zero goals lined out by the Paris Climate Agreement.

"Global hydropower capacity would need to grow twice as fast through 2030," he said. "A much stronger and all-encompassing policy approach would be required to achieve this."

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