As 2025 draws to a close, we sense more optimism in the hydropower sector than for many decades. The pipeline – especially for pumped storage - is healthy and regulations are being amended to attract more investment.

The message is getting through sustainable hydropower provides the stability, flexibility and long-duration storage that modern grids need, helps to reduce strategic dependencies on imported fuels, and substantially contributes to energy security.

It is not just about winning the argument. Because the market alone won’t deliver, we need to support governments with clear and tailored recommendations to support their ambitions.

This year, International Hydropower Association has advised, convened, campaigned, and published, to support governments in every major hydropower market in the world to accelerate the development of sustainable hydropower.

Here are 12 highlights from 2025

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1. Delivered largest ever international pumped storage event - the International Forum on Pumped Storage

2025 was focused on pumped storage. In September, IHA hosted the most significant international pumped storage event yet - the International Forum on Pumped Storage, held in Paris. With more than 500 participants from across the world, the Forum lifted the profile of pumped storage as the backbone for energy security and grid flexibility. Over two days, leaders aligned around the policies, investment models and sustainability practices needed to scale the world’s “water batteries” and set the tone for accelerated action in 2025 and beyond.

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2. Launched the GAPS Principles and the Pumped Storage Policy Toolkit

In 2025, the intergovernmental Global Alliance for Pumped Storage (GAPS), under IHA President Malcolm Turnbull, grew to 60 governments and international agencies. They published the Pumped Storage Policy Toolkit in January and adopted of the GAPS Principles at the Paris Forum in September.  

The GAPS Principles reaffirm the indispensable role of pumped storage hydropower in delivering a clean, secure and climate-resilient energy future. Along with the Toolkit, they present a clear pathway and options for governments to strengthen power system flexibility, decarbonise energy markets, support economic development and encourage innovation in long-duration storage.

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3. Delivering the Paris Pledge on Pumped Storage to European Commission in Brussels

Europe’s investment climate is changing for pumped storage. IHA, Eurelectric, and Europe’s largest hydropower players issued a joint call to the European Commission to take decisive action in support of long-duration energy storage. At a high-level Commission-business roundtable in Brussels, the message was clear: Europe needs decisive action on long-duration storage to secure affordable, reliable and fully decarbonised electricity.

The industry coalition urges the European Commission and member states to develop clear mechanisms and investment frameworks to accelerate deployment, in line with the Commission’s stated mission to enhance renewable energy and energy storage rollout. Following a further submission on behalf of the industry, IHA is confident that pumped storage will be well reflected in further EU energy focused initiatives.

4. Powering Australia’s future with the Australian Working Group and multi-city workshops    

Australia has seen a solar revolution – now it needs storage. In February, IHA and GHD co-hosted high-level forums, bringing together policymakers, industry leaders, and investors to drive momentum behind long-duration energy storage. Discussions focused on the urgent need to scale up pumped storage as a cornerstone of Australia’s clean energy transition.

Participants examined the markets and revenues, project development, and contractual risks associated with pumped storage project to support financing models, policy frameworks, and regulatory barriers that must be addressed to unlock investment in new projects. The outcomes of the events were shared with the Queensland and NSW governments and submitted to the National Energy Market (NEM) review. We understand that the changes are being considered.

5. Advocacy in India

India is poised to become one of the world’s largest centres of pumped storage hydropower development. IHA established the Indian Working Group and embarked on a series of high-level policy engagements across the country.

IHA convened meetings with the Ministry of Power in New Delhi, as well as state governments in Gujarat, Kerala and Andhra Pradesh. These engagements focused on national hydropower policy, permitting and licensing for pumped storage, integration of the Hydropower Sustainability Standard, and India’s leadership role within GAPS.

Industry representatives from IHA member organisations - including Adani, AECOM, Andritz, EDF, Entura, Greenko, ReNew, SMEC, and Voith - joined the discussions, providing detailed technical perspectives and practical recommendations to policymakers.

6. Publishing the 2025 World Hydropower Outlook

The 2025 World Hydropower Outlook highlighted strong global momentum - especially for pumped storage. Global hydropower generation surged by 10% in 2024 to 4,578 TWh, rebounding from drought-affected lows. A total of 24.6 GW of new hydropower capacity was added, including 8.4 GW of pumped storage - a 5% increase that lifts global pumped storage capacity to 189 GW. Annual pumped storage additions have nearly doubled in the past two years.

China continued to dominate global additions, commissioning 14.4 GW of new capacity. Africa saw an encouraging year, adding 4.5 GW. Europe reached its highest generation in a decade at 680 TWh, supported by strong rainfall and growing policy momentum for energy storage.

Despite strong progress, the Outlook warns of a potential 60–70 GW gap by 2030 compared to the International Renewable Energy Agency’s “tripling renewables” scenario. Accelerated permitting, policy support and financing are essential to closing this gap.

7. Celebrating excellence with the IHA Blue Planet Prizes

Hydropower sustainability is becoming increasingly central to the sector. In particular, the Hydropower Sustainability Standard has driven improved performance, strengthened community outcomes, and elevated global expectations for responsible hydropower development.

Three outstanding projects received the prestigious 2025 IHA Blue Planet Prizes, recognising their leadership in responsible, high-performing hydropower development. Each was selected through a rigorous, independent assessment under the Hydropower Sustainability Standard, demonstrating excellence across environmental, social and governance criteria.

The 2025 recipients represent a diversity of project types and geographies - large hydropower, pumped storage and small hydropower - illustrating the Standard’s applicability across the full spectrum of hydropower technologies.

The main IHA Blue Planet Prize was awarded to the 2,520 MW Bakun Hydroelectric Project, Southeast Asia’s largest hydropower plant. Bakun achieved Silver certification following extensive efforts by Sarawak Energy to strengthen ESG performance since acquiring the facility in 2017.

SSE’s Coire Glas Hydropower Project became the world’s first pumped storage project to achieve Gold certification under the Hydropower Sustainability Standard.

In the small hydropower category, the 9.5 MW Mai Beni project achieved Gold certification. Operated by Urja Developers and Samling Power Company, Mai Beni stands out for its strong community partnerships, active local engagement, jobs created during construction and operations and effective emergency preparedness.

The Jirau Hydropower Project in Brazil and the Fljótsdalsstöð Hydropower Project in Iceland were both recognised for outstanding achievement.

8. Amplifying sustainable hydropower on the global stage

Energy storage is no longer the ignored crisis within the crisis on the international stage. IHA represented the hydropower sector at global events across the year. These included COP30, the Global Renewables Summit, G20 Clean Energy Ministerial, IRENA General Assembly, IEA Ministerial, ICOLD Summit, OLADE and more – to ensure hydropower’s voice was heard where it matters most.

9. The biggest Global Hydropower Day yet

Global Hydropower Day not only demonstrates the enduring pride of the sector and the people who make it what it is. Its 2025 edition was the most far-reaching celebration since its creation, reflecting a rising global appreciation for hydropower’s role in securing a clean and resilient energy future. With celebrations across 44 countries – up from 39 the previous year – the event brought together communities, governments, project operators and industry leaders worldwide. The campaign’s media reach soared to an estimated 28.6 million – from 1.4 million the previous year – reflecting the growth in engagement and hydropower’s ever-growing role in the energy security conversation.

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10. Welcoming IHA’s new Board

IHA members elected 18 industry leaders to serve on the Board for the 2025–27 term. Chaired by Anton-Louis Olivier, the Board will steer IHA’s work to advance sustainable hydropower worldwide over the next two years. Meeting for the first time at the International Forum on Pumped Storage in Paris, the Board brings regional diversity and deep expertise—ready to guide IHA through an era where hydropower’s role is more important than ever.

You can find the full list of our Board members here.

11. A growing global hydropower community with 17 new IHA members

The IHA welcomed 17 new members, strengthening our global network of industry leaders aimed at developing sustainable hydropower.

Welcome to the community: Adani Green Energy Limited, Aurecon, BGP Holding (US) LLC, Dolma Group, Ganz Electric, Georgian Energy Development Fund (GEDF), Glen Earrach Energy, Global Hydro Energy, Hydroelectric Power Plants Industrialists Association (HESİAD), Iberdrola Generacion, ILF Consulting Engineers, North South Power Company, Plan Recruit, ReNew, WaterNSW, WSP, and Zutari.

12. Celebrating 30 years of IHA  

To mark its 30th anniversary, IHA launched the #IHA30 campaign - celebrating three decades of leadership in sustainable hydropower and charting the path toward the next 30 years of global impact.

Throughout the year, IHA spotlighted stories from members across the world - reflecting how hydropower projects, people and policies have strengthened global climate action. The celebration was celebrated in person at the International Forum on Pumped Storage in September and at COP30 in Belém, Brazil.

The #IHA30 campaign is more than a celebration, it is a forward-looking effort to inspire action, share knowledge and strengthen collaboration across the global renewables community.

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Building on these milestones, IHA will focus in 2026 on pumped storage, modernisation, and sustainability in the sector. We will:

• convene government-business roundtables and other dialogues in Australia, Brazil, Europe and India;
• establish regional exchanges, including between members in China, Europe, India, Latin America, and South East Asia;
• convene working groups on the above topics, especially with government involvement through GAPS, to deliver key publications and guides;
• working closely with our friends in the Global Renewables Alliance, bring the voice of sustainable hydropower to the international table, especially to lift long duration energy storage up the agenda; and
• build momentum towards the World Hydropower Congress in Sydney in April 2027.

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We look forward to working with our members, stakeholders, and partners, to deliver secure, green, reliable, and affordable energy for the 21st century.

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