While hydropower projects play an important role in reducing greenhouse gas emissions, they are also increasingly affected by the impacts of climate change. These include risks of floods, draughts and other natural hazards which are becoming more severe in many regions of the world. This How-to guide provides a structured approach for climate resilience assessments and climate risk management. It aims to support project developers, owners and other key stakeholders of the sector in sustaining hydropower performance under conditions of climate change.

Principles have been recognised by governments and international agencies to accelerate the clean energy transition using pumped storage hydropower.

These underline the critical role of pumped storage for energy security, flexibility, resilience, affordability, climate adaptation and economic growth.

‍

The World Hydropower Outlook, a flagship annual publication by IHA, tracks and directs the progress of hydropower development globally against net zero pathways. Drawing upon exclusive new development insights from IHA’s global database, it features in-depth analysis of hydropower’s growth trajectory. The report highlights policy and financial investment challenges and examples of good progress.

‍

• Global hydropower capacity grew by 24.6GW in 2024, including 16.2GW of conventional hydropower and 8.4GW of pumped storage hydropower.
• Hydropower remains the world’s largest source of renewable electricity, supplying 14.3% of global power and supporting power system flexibility in more than 150 countries.
• The global hydropower development pipeline now exceeds 1,075GW, including 600GW of pumped storage and 475GW of conventional projects.
• China continues to dominate global hydropower development, with 14.4GW of new capacity added in 2024, including 7.75GW of PSH.
• Africa more than doubles the previous three years’ development, commissioning 4.5GW of new hydropower capacity in 2024.
• Europe saw a decade-high 680TWh in hydropower generation supported by strong rainfall, while EU and national policy measures drive momentum for pumped storage.

Supported by:

‍

This toolkit details the barriers for delivering policy solutions to pumped storage development and the appropriate mechanisms needed to drive this growth.

Pumped Storage Hydropower (PS) is the largest form of renewable energy storage, with nearly 200 GW installed capacity, providing more than 90% of all long duration energy storage across the world with more than 400 projects in operation.

Recommendations for policymakers, policy solutions, applications and countries’ PS targets are mapped out across this toolkit. There is clear evidence of overcoming the barriers to implementation of PS, however, further solutions and recommendations are needed to meet global storage targets and needs. 

Click here for the latest updates

‍

Translations available

Portuguese
Spanish

‍

‍

In 2024, hydropower reaffirmed its role as the world’s largest renewable electricity source and a cornerstone of the clean energy transition. Global momentum grew through new projects, stronger policies, and rising interest in energy storage. Two key themes for 2025 are advancing pumped storage development and highlighting hydropower’s ability to manage climate extremes like drought and flooding.

The International Hydropower Association (IHA) focused on promoting pumped storage through initiatives like the Global Alliance for Pumped Storage (GAPS), the Global Renewables Summit, and the Global Storage Pledge—now backed by 58 governments. Despite pumped storage providing over 90% of global stored energy, market barriers persist due to high capital costs and uncertain returns.

In 2024, IHA expanded its global presence with new offices across four continents and welcomed 17 new members. As IHA marks its 30th anniversary, efforts will continue to position hydropower at the heart of climate resilience and the clean energy future.

Pumped Storage Hydropower (PSH) is the largest form of renewable energy storage, with nearly 200 GW installed capacity providing more than 90% of all long duration energy storage across the world with over 400 projects in operation.

This guidance note delivers recommendations to reduce risks and enhance certainty in project development and delivery. It also equips key decision-makers with the tools to guide the development of pumped storage hydropower projects and unlock crucial finance mechanisms. By utilising the recommendations provided, a new market entrant will be better able to understand the risks and create a mitigation strategy to address them.

Pumped storage hydropower: powering Australia’s energy future
‍A supplement to the Enabling Pumped Storage Hydropower Guidance Note

Technical Documents Log

Project Methodology

‍

‍

The World Hydropower Outlook, a flagship annual publication by IHA, tracks and directs the progress of hydropower development globally against net zero pathways. Drawing upon exclusive new development insights from IHA’s global database, it features in-depth analysis of hydropower’s growth trajectory. The report highlights policy and financial investment challenges and examples of good progress.

• Global hydropower fleet grows to 1,412GW in 2023 but five-year rolling average shows downward trend
• A growth rate of just over 26GW per year from now to 2030 is needed to stay on track with net zero targets
• Hydropower is the largest single source of renewable energy, with pumped storage hydropower providing more than 90% of all stored energy in the world
• It is estimated that around double the amount of hydropower that is currently installed is needed for net zero scenarios by 2050
• To double hydropower capacity by 2050, a cumulative investment of approximately US$3.7tn is required, or about US$130bn annually. This equates to more than double the current level of funding
• IHA’s assessment of the “big 100” pipeline of projects under development indicates that this acceleration is within reach for the early years of the next decade, but more action is needed over the longer term.
• Hydropower is among the best ways to mitigate for droughts. IHA estimates that through the water storage function of its reservoirs, the hydropower industry prevents over US$130bn in annual GDP losses from drought incidents

‍

Download the 2024 World Hydropower Outlook in your preferred language:

French

Spanish

‍

‍

2023 was a momentous year for the International Hydropower Association (IHA) and its efforts to advance sustainable hydropower’s role in the energy transition. As Roger Gill handed the IHA Presidential reins to Malcolm Turnbull, this was a year that included the inaugural World Hydropower Outlook, the launch of the Hydropower Sustainability Alliance, the largest in-person World Hydropower Congress to date, and its representation at the Renewables Hub at COP28 (as part of the Global Renewables Alliance). There have been significant strides in lifting the voice of sustainable hydropower globally, along with the 20 new members that joined IHA this year, we need to continue to increase this voice and see more policy change and investment to meet net zero by 2050.   

Contents:

• Foreword  
• IHA 2022-27 Strategy 
• Delivering a values-based membership model  
• 2023 year in review 

‍

At the HydroPOWER Africa week in Abuja, Nigeria the Minister of Power, Chief Adebayo Adelabu, addressed attendees at a high-level roundtable on the back of the launch of the Africa section of the 2024 World Hydropower Outlook. He and focused on capturing the potential for hydropower for Africa’s clean energy transition.

Chief Adebayo Adelabu said, "Blended finance solutions can unlock investment opportunities for hydropower in Africa’

‘To move fast, you move alone, but to move far you have to move together. We won't harness our human resources if they aren't energised by our natural resources. We need foreign investments and can provide a guaranteed return. Let’s turn our hydropower potential into reality for all Africans.’

Download the Abuja Action Plan on Sustainable Hydropower Development in Africa in your preferred language:

French

Portuguese

‍

A open letter from Malcolm Turnbull, former Australian Prime Minister and now IHA President to the UK Prime Minister about the potential to improve UK energy security and ensure a reliable and affordable decarbonised electricity grid. Rapid deployment of the cap and floor mechanism for long duration electricity storage should lead to the development of much needed new pumped storage hydropower capacity in the UK.

‍

Integrating large quantities of intermittent solar and wind energy at an accelerated pace will present a formidable challenge to the power grid. Our energy system will have to become more flexible, and policy-makers will have to ensure that the energy transition does not create disruptions. XFLEX HYDRO, and the demonstration that hydropower can provide additional flexibility is a building block towards this goal.

XFLEX HYDRO is a European Union Horizon 2020 research and innovation project with the objective to show hydropower’s technical and strategic role in demonstrating how renewable-based generation can be achieved in a secure and reliable manner. Thanks to this project, the sector has gained a better understanding of the flexibility that the existing EU hydropower fleet can provide to the electrical system, and demonstrated how, using a set of innovative technologies, this flexibility potential can be optimised and enhanced.

These innovative hydroelectric technological solutions are the following:

• Variable speed units;
• Hydraulic short circuit;
• Hybridisation with a battery energy storage system; and
• Smart Power Plant Supervisor (real-time optimisation methodology)

The project puts hydropower at the forefront of innovation, strengthening the industry’s know-how, improving its technology export potential, and facilitating job creation. This document is designed to speak to a wide range of stakeholders and its content is laid out in a manner so that the relevant information is clear, accessible, and actionable by the reader. The technical part of this report provides the key takeaways from the project and enables plant owners and energy experts to identify opportunities to introduce some of the findings in their plants.

This set of conclusions can be found in Section 4, where the four technologies relevant to the European hydropower fleet are discussed (presented individually, as well as in six possible upgrade strategies). To facilitate the identification of the relevant combination of technologies, these upgrade strategies are classified under the three categories of hydropower plants: reservoir storage plants (RSP), pumped storage plants (PSP) and run of river plants (RoR).

Despite the remarkable results achieved by the project and the technical benefits associated with the deployment of these innovative technologies, several barriers are currently limiting their wider adoption in the European context. The flexibility provision of the hydropower fleet will only be entirely optimised and utilised if dedicated energy policies are put in place, aimed at securing the availability of indigenous flexibility solutions over the next decades.

Through the dialogue carried out within the consortium’s partners and external energy experts, seven key recommendations have emerged:

• Recognise and value hydro flexibility as an essential service to the power system to achieve a successful energy transition. As power systems are progressively losing the flexibility provided by non-renewable conventional energy sources, recognising, and valuing the growing necessity for flexibility services is crucial to ensure grid stability and security of supply over the next decades.
  ‍
• Remove regulatory barriers for unrestricted implementation and operation of hydro flexibility technologies. To unlock the full potential of existing hydro assets and introduce new technologies, it is essential to eliminate regulatory barriers that limit the adoption of flexibility upgrades or that create discrepancy in the procurement process of flexibility services. For example, in certain countries operating in hydraulic short circuit mode is currently not allowed.
  ‍
• Provide remuneration mechanisms enabling investment in flexibility. Existing electricity and ancillary services markets (when available) excel in ensuring that the service required is provided at minimal cost to consumers, but their short-term nature does not provide the long-term revenue visibility required to justify new investment in flexibility technology upgrades.
  ‍
• Facilitate cross-border collaboration for efficient exchange of flexibility services. Encouraging international collaboration among European countries is essential for the efficient exchange of hydro flexibility services and expertise. By fostering cross-border connections, countries can share resources and expertise, optimising the utilisation of hydro flexibility on a broader scale.
  ‍
• Streamline licensing renewals for optimised hydropower operations. Simplifying the licensing process and accelerating permitting procedures are vital for the operational stability of hydropower projects. This not only reduces uncertainties linked to licence renewals and ownership transfers but also provides a clear and predictable framework in which power companies can operate.
  ‍
• Conduct system-level analysis to anticipate and address future flexibility needs. To effectively address future challenges and make sure that electric power systems can deliver a safe energy transition, system-level analyses are essential. These can provide the long-term vision needed to identify and prepare for future flexibility challenges in the most technically efficient, secure, and cost-effective way.
  ‍
• Promote support mechanisms for the modernisation of ageing hydropower infrastructure. Financial or tax mechanisms that support the modernisation of ageing infrastructure are essential to secure and enhance the benefits currently provided to society by these plants. These mechanisms should be focused on rewarding modernisation projects that are introducing cutting edge technologies and leading in the adoption of cleaner and more flexible energy solutions.

Download the Bali Statement on Powering Sustainable Growth in your preferred language:

Indonesian

Chinese

Spanish

French

Portuguese

Russian