Afghanistan’s planned 285km Qosh-Tepa canal could divert up to 20% of the Amu Darya’s flow, raising concerns in Uzbekistan and Turkmenistan; and in early 2025 Uzbekistan called for further dialogue. In 2024 heavy rains and snow caused severe flooding, destroying over 250 homes and damaging farmland over an extensive area.

Angola’s Luachimo hydropower station has been modernised and expanded from 8.8MW to 34MW. Commissioned in May 2024, the upgrade included four 8.5MW turbines, a diversion canal and new electrical infrastructure. The US$212 million project was led by China Gezhouba Group, which is also constructing the 2,172MW Caculo Cabaça plant, expected to be commissioned in 2026.

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The Argentinian hydropower sector is undergoing major growth, with several large-scale projects nearing completion and new developments planned. Projects include the 1,310MW Santa Cruz hydroelectric plant, which is slated for completion by 2026. The 950MW Condor Cliff Dam, developed by Represas Patagonia, is set for commissioning by 2027, while the 871MW Chihuido project, still in permitting, is expected online by 2029. The national government also announced plans for the ambitious 3,500MW Cospues plant, aiming for 2033 operations. Meanwhile, the Río Grande PSH, the continent’s largest reversible facility, is operating at 50% capacity, with ongoing renovations due for completion in late 2025.

Argentina’s national hydroelectric capacity was revised down by 746MW in 2024, following a reclassification of the Yacyretá plant to reflect only the Argentine share. Across the country, hydropower generation declined 15.02% compared to 2023, with a further 34.3% drop in January 2025 due to extremely low river inflows. At the same time, large mining endeavours – such as copper and lithium extraction at the Caucharí-Olaroz plant in Jujuy – together with emerging green hydrogen production and the reactivation of petrochemical complexes, will each demand tens or even hundreds of megawatts, have further strained the national energy supply.

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Armenia reported year-on-year growth in small hydropower in 2024, reaching 190 plants with a combined capacity of 402MW. An additional 59MW is under construction. Overall electricity generation rose by 6.5%, with hydropower contributing to the increase.

Australia continues to integrate hydropower, particularly PSH, into its energy transition strategy, with the goal of reaching 82% renewables by 2030. The 2,000MW Borumba project has seen its cost rise from A$14bn (US$9bn) to A$18.4bn (US$11.8bn), prompting a review of its scale and a revised completion date of 2033. Private investment is growing, including a proposed 1.6GW PSH project using WaterNSW reservoirs. Meanwhile, Upper Hunter Hydro is exploring projects at Glenbawn and Glennies Creek; Glenbawn is planned at 770MW/7.7GWh (10-hour duration). The Snowy Hydro 2.0 PSH project continues, with completion delayed to 2028. Permitting is being streamlined, and the A$5bn (US$3.2bn) HumeLink transmission line is due to begin in 2025 to support grid integration.

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Austria remains one of Europe’s most active countries in PSH expansion and hydropower fleet modernisation, with more than 1.4GW currently under construction. The Kaprun 2029 project, for example, launched by Verbund, involves the modernisation of the Kaprun Main Stage power plant. This includes the reconstruction of the pressure tunnel and key electromechanical equipment. The tunnel boring work began in February 2025. The group has also announced the intention to develop a new PSH plant, Schaufelberg, with an installed capacity of 480MW.

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In 2024, Azerbaijan hosted COP29 with a focus on climate finance. Ahead of the summit, the government signed a memorandum of understanding with two Chinese companies to support the development of PSH and high-voltage transmission infrastructure.

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In 2024, Bhutan’s Electricity Regulatory Authority released its Strategic Plan and licensed the 118MW Nikachhu project. The first two turbines at the delayed 1,020MW Punatsangchhu II project came online in July 2024. Bhutan is also developing a US$830 million climate investment adaptation plan. Bhutan confirmed the European Investment Bank would provide €150 million in loans for 310MW at hydropower and solar projects, alongside ongoing dialogue with the World Bank to address a $600 million finance gap for Bhutan’s hydropower projects.

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Bolivia’s hydropower sector is growing significantly, with major projects including Rio Madera, Ivirizu and Miguillas moving forward. The binational Madeira River project still faces several significant hurdles. Both Guayaramerín, on the Brazil–Bolivia border, and Bolivia’s Cachuela Esperanza (990 MW) remain stuck in the feasibility and planning phase, with no clear construction timelines, confirmed financing, or necessary permits, and they continue to await coordinated agreements between both countries before any further progress can be made. Located on the Madeira River and its tributaries, such as the Beni, this binational project is expected to generate 20 TWh of electricity each year. Meanwhile, the Ivirizu complex, which will generate 1.16TWh and the first stage of the 203MW Miguillas hydroelectric plant, developed by ENDE, are both expected to be finalised in 2025.

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A severe dry spell in late 2024 reduced Brazil’s hydropower output to three-year lows, with hydropower falling to a 50% share of the energy mix during September. Anticipation of low water flows in the future has been a factor in limiting development of new sites. The country added a record 10.85GW of total generating capacity during 2024, but hydropower’s contribution to this was small: only 56MW from eleven new projects. The nation’s installed hydropower capacity now stands at 110GW, with 1.3GW more licensed or under construction.

There are currently 32 advanced-stage projects totalling 442MW and 60 licensed projects awaiting construction, representing 945MW. In March 2025, Aneel approved a regulatory change at the Jirau project so that the water level is at 90 metres year-round. This will increase output by an average of 250MW. Meanwhile, Norte Energia, operator of Belo Monte (11,233MW), boosted ESG initiatives, focusing on reforestation, gender diversity, R&D in electric mobility, and indigenous bioeconomy ventures. Meanwhile, large-scale investments in mining and heavy industry – particularly mineral processing, petrochemicals and high-tech manufacturing – alongside growing foreign direct investment in data centres (2025 saw Equinix join Google, AWS and other major operators) are driving urban electricity demand ever higher.

Brazil is also promoting capacity expansion at existing hydropower plants, as the high volume of solar and wind generation is requiring additional dispatchable capacity to provide reliability to the grid. However, current regulations do not give adequate signals to owners to add flexibility when investing in this expansion, which is a missed opportunity that should be addressed by the regulators.

Brazil is now discussing the implementation of new regulatory framework to allow pumped storage hydropower to be developed in the country, taking advantage of the country’s existing supply chain and providing a sustainable solution for the National Grid’s growing needs. 

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Private finance has been secured for two small hydropower projects in Burundi – Upper Ruvyironza (1.65MW) and Upper Mulembwe (9MW) – which will increase national generation capacity by 10%. Backed by a US$35 million loan from the Trade and Development Bank, the projects will generate more than 62GWh annually. Songa Energy is developing both under Burundi’s public-private partnership framework.

In October 2024, Cambodia announced plans to increase its power import capacity by more than 50% over two years, targeting more than 600MW from neighbouring countries including Laos and Thailand. The initiative forms part of a broader strategy to strengthen regional interconnection and grid stability in response to variable hydropower output linked to climate conditions.

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The country fully commissioned its 420MW Nachtigal run-of-river project in March 2025, boosting national supply by 30%. Developed by a five-member consortium headed by EDF, the plant will provide baseload power for 35 years. The 30MW Lom-Pangar project was also completed in 2024. Construction of the 500MW Kikot-Mbébé scheme is scheduled to begin in 2026.

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Hydropower continues to produce almost 60% of Canada’s total annual electricity generation and represents more than half of its total installed capacity. In several provinces where hydropower is abundant, further expansion is seen as key to satisfying increasing energy needs.

For example, the premiers of Québec and Newfoundland & Labrador recently announced an historic agreement to collaborate on future electricity development through joint ventures. The deal includes increased hydropower generation capacity at the existing Churchill Falls facility, the development of a new generation station on the Churchill Falls site, and a new facility at Gull Island. These projects will add a total of 3,900MW new hydropower generation capacity.

In addition, Newfoundland & Labrador Hydro’s 2024 Resource Adequacy Plan reveals that a new 154MW hydroelectric unit for its Bay d’Espoir facility is a frontrunner among several supply options.

In British Columbia, a major milestone was achieved at the Site C project with the successful testing and commissioning of the first two of its six generating units.

As the third major dam and generating station on the Peace River in northeast BC, Site C is poised to significantly boost the province’s hydroelectric capacity. Once fully operational, it will add 1,100MW of capacity and generate approximately 5.1TWh annually – enough to satisfy approximately 8% of BC’s total electricity needs.

Pumped storage development also took a significant step forward in Nova Scotia, where there are proposals to repurpose a disused mine into a closed-loop pumped hydro energy storage system. A feasibility study will be conducted for the facility which will be complemented by photovoltaic panels.

Ontario also announced investment to advance a PSH project, including the completion of a detailed cost estimate and environmental assessments to determine the feasibility of the project.

The province’s Minister of Energy also initiated the Northern Hydro Program (NHP). The initiative, which is being developed by the Independent Electric System Operator (IESO), aims to recontract existing hydroelectric generation facilities in northern Ontario with an installed capacity greater than 10MW. Eligible facilities will have contracts with the IESO or the Ontario Electricity Financial Corporation (OEFC) that have expired or are set to expire on or before April 30, 2043. The program will also consider factors beyond facilities’ ability to generate electricity, including:

• The social and regional benefits hydropower provides – including water management, which can help with flood control, irrigation and the support of local ecosystems.
• The capital investments needed to keep large hydroelectric facilities running safely and efficiently over time.

More than two dozen hydropower facilities are expected to qualify for contracting again under the NHP, highlighting the extent of the program’s impact across northern Ontario.

Several major refurbishment projects have also continued or were announced in BC, Ontario and Québec.

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A 20MW/160MWh pumped storage project will soon be operational at Chão Gonçalves on Santiago Island, supported by a €60 million loan from the European Investment Bank. Due online in 2028, the plant will help reduce fossil fuel use by 22% and support the national goal of sourcing 54% of electricity from renewables by 2030.

Chile’s installed generating capacity has grown spectacularly in recent years, driven by variable renewables; hydropower, however, has played a relatively small role in this expansion. In 2024, four projects added a total of 157.7MW to Chile’s hydropower capacity: Los Cóndores (150MW), Pasada Piedras Negras (3MW), La Confianza (2.6MW), and Nueva Ampliación PMGD Las Flores (2.1MW). Four more projects, with a combined investment of $677 million, are also under construction: Las Nieves (6MW), Dos Valles (4.5MW), Los Lagos (48MW) and Central Ñuble de Pasada (136MW). A 52MW Los Lagos run-of-river project has also recently received approval.

China remains the global leader of hydropower development, with ongoing growth in both conventional hydropower and PSH. While conventional project development has slowed from previous peaks, notable progress continues. The 1,200MW Yangqu station in Qinghai Province, commissioned in 2024, is part of a cascade along the Yellow River and is expected to produce 4.7TWh annually. Meanwhile, PSH is emerging as China’s primary hydropower growth area. In 2024, the 3.6GW Fengning project in Hebei Province, now the world’s largest PSH facility, was commissioned by State Grid Xinyuan, underscoring China’s emphasis on energy storage and system flexibility.

Construction of Ituango, Colombia’s 2,400MW run-of-river project, is progressing. It is the country’s largest and among the continent’s ten biggest hydropower projects. By late 2024, Ituango had partially entered service with 1,200MW installed, and is expected to reach full capacity by 2027. Elsewhere, hydropower development has lagged, with just two projects completed in 2024 – TZ II (10.5MW) and Alejandría (2MW). Both are currently undergoing testing. Two major projects, Porvenir II (352MW) and Miel II (120MW), have been approved, however, signalling future growth for Colombia’s hydropower sector.

Construction has begun on the 600–800MW Sounda hydropower plant in Congo, following a memorandum signed with China Overseas Corporation in September 2024. With a US$9.4 billion budget, the project is nearly four times the size of the country’s current installed hydropower capacity. Completion is expected by 2030, significantly expanding national generation potential.  

Plans were announced to build the 53MW Fourth Cliff hydropower plant, which could be operational by 2031. While still in the pre-feasibility stage, the plant would complement the country’s already impressive fleet and help mitigate energy challenges associated with climate variability and cyclical phenomena such as El Niño, which can affect rainfall and hydropower generation.

Six potential sites for new PSH projects were identified by the Czech Republic’s Ministry of the Environment and Ministry of Agriculture in June 2024. The country is exploring PSH opportunities as it looks to increase storage capacity and the resilience of its power system. The six sites are connected to existing dams, according to the government, therefore construction is unlikely to have significant negative environmental or social impact.

Côte d’Ivoire commissioned the 112.9MW Gribo-Popoli plant in July 2024, part of a planned 508MW cascade on the Sassandra River developed by the state power company, CI-Energies, and built by PowerChina. The 44MW Singrobo-Ahouaty project on the Bandama River is also nearing completion and will supply peak power under the country’s first privately financed hydropower model. Developed by Ivoire Hydro Energy with Themis Group, the project won IJ Global’s Power Deal of the Year and was backed by a €40 million loan from the African Development Bank.

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Two 200MW hydropower projects are progressing in the DRC. On the Lufira River, Kipay Investments SAS and Afreximbank are partnering on technical, legal and financial preparation for the country’s first private renewable energy project. On the Lualaba River, Nzilo II will supply power to China-based mining firm CMOC, complementing solar generation at night. While the 44GW Grand Inga project remains in the planning stage, a US$22.1 million substation upgrade at Inga I and II is already improving grid stability and reducing energy losses.  

Three multipurpose projects incorporating hydropower advanced: Las Placetas (89MW) which includes pumped storage, Gina and Guayubín.

Ecuador’s hydropower system remains under pressure due to droughts, which have triggered electricity blackouts. With 72% of the country’s power generation dependent on water, the government is turning to solar projects to add resilience. The government is also passing laws to help boost private investment in hydropower from 10% to 47%. Other measures include a 12-month zero import tariff for energy generators. Meanwhile, construction has yet to begin on the Zamora hydropower project (3,565MW), the first 68MW turbine in the 254.4MW Toachi-Pilatón project has been completed, and feasibility studies are underway for major projects in the Santiago basin (over 3,000MW) and further Zamora schemes.

The Egyptian authorities have completed feasibility studies for two 1,000MW pumped storage projects in Luxor and Qena, with investment expected to reach US$2.5 billion. Both projects would use Nile water and are planned for private-sector development, though a timeline has not been confirmed. Meanwhile, the government is preparing to relaunch the tender process for the 2.4GW Ataqa Mountain PSH project, which uses treated wastewater, after initial financing efforts by Sinohydro were unsuccessful.

The 3 de Febrero hydropower project (previously known as El Chaparral) completed its first full year of operation, adding 64MW to the energy mix and acting as a giant battery to integrate other renewables. 

Development of the Paldiski project, Estonia’s first PSH plant, moved a step closer to ground-breaking phase in 2024 as Energiasalv issued a tender for the design and construction of the 500MW underground facility. Construction works were originally expected to begin in Q2 2025 but now depend on the conclusion of the tender process.

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Construction has begun on Eswatini’s first privately financed hydropower project following financial close in February 2025. The 13.5MW Lower Maguduza project is being developed by African Clean Energy Developments, with African Infrastructure Investment Managers and the Eswatini Public Service Pensions Fund as shareholders. The US$62.4-67.6 million scheme is backed by Standard Bank, with Zutari Eswatini overseeing construction on behalf of the project owners. Construction is expected to take 25 months.

Ethiopia has commissioned the third and fourth units of the Grand Ethiopian Renaissance Dam in 2024, adding 800MW to the grid. Construction is nearly complete, with full capacity set to reach 5,150MW. Ethiopian Electric Power is also progressing with three major projects – Genale Dawa 5 (100MW), Geba Stage 1 and 2 (371MW), and Halelle Werabesa Stage 1 and 2 (422MW) – with African Development Bank support for technical studies.

A new and innovative underground PSH project in Pyhäjärvi was announced in May 2024. The project is unique because it reuses decommissioned mine infrastructure, combining underground pumped hydro and battery storage systems. It is designed to deliver 530MWh of energy storage with a peak capacity of 75MW. It will be developed alongside a battery energy storage system of comparable capacity. 

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The Kinguélé Aval hydroelectric project in Gabon has secured its initial disbursement of €134 million from various financial institutions. Developed under a public–private partnership by Asonha Energie, majority-owned by Meridiam, and the Gabon Power Company, the 35MW project on the Mbei River has a construction consortium led by Sinohydro, alongside French firms Artelia and EDF. Additionally, Meridiam plans to establish a biodiversity sanctuary, provide electricity to the village of Andock Foula, and support the Kango hospital with essential equipment.

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The Georgian Economy Ministry has indicated that it is targeting 10GW of electricity generation by 2032 and that the share of hydropower will rise from 50% to 74% by that year. In 2024 the 44.5MW Khobi-2 hydropower project was commissioned, and the 22.4MW Kaspi Hydro Power Plant was announced and is set to be built on the Mtkvari River in the Kaspi Municipality.

Construction work to recommission the 160MW pumped storage plant at Happurg is underway, just months after plans were announced by Uniper in mid-2024. The project, with a total expected investment of €250 million, is set to enhance grid flexibility and reliability in southern Germany. The plant is scheduled to be fully operational by 2028.

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Guyana has revived its flagship 165MW Amaila Falls hydropower project after years of delays and failed attempts. Initially awarded to China Railway Group under a BOOT model, talks collapsed in 2022 over costs. As of 2024, the government is re-tendering the project, with four international firms prequalified. Amaila is central to Guyana’s low-carbon strategy, with expectations it will supply more than 50% of the nation’s electricity, reducing dependence on oil. A public–private partnership is expected. Key hurdles including financing challenges, indigenous consultation, and environmental concerns remain ahead of the targeted 2029 commissioning date.

Tendering of the 95MW Hvammur greenfield HEP is under way and commissioning is expected in 2030. The project will generate 740GWh annually. Tendering of the expansion of the Sigalda project is also ongoing, where one 65MW turbine will be added to increase flexibility, with commissioning expected by end-2028. At the same time stops will be utilised to refurbish the existing 3 x 50MW station and dam. The pipeline of projects is healthy both for greenfield and brownfield expansion developments.

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India is rapidly emerging as a global leader in PSH. It aims to add 51GW of PSH by 2032. To support India’s storage targets, the Central Electricity Authority (CEA) has accelerated project approvals for six major projects totalling 7.5GW in 2024/25 and plans to approve at least 13 more projects (22GW) in 2025/26. 

As of early 2025, approximately 44.5GW of pumped storage projects are at various stages of development. Three private players – Greenko, Adani Green, and JSW Energy – are poised to develop nearly two-thirds of the country’s planned 51GW PSH capacity by 2032. Greenko will commission the 1.68GW Pinnapuram project – its first PSH plant – in September 2025, while Adani Green’s 500MW Chitravathi project is slated for commissioning in 2027. Elsewhere in the country:

• In Madhya Pradesh, construction has begun on the 1.92GW Gandhisagar pumped storage project, with commissioning scheduled for June 2028. The 640MW Indira Sagar project is currently in the early stages of development.
• In Karnataka, the 2GW Sharavathy pumped storage project is under construction and is expected to be commissioned in December 2029. The 300MW Narihalla project is also in its early development phase.
• In Odisha, construction has started on the 600MW Upper Indravati project, following detailed project report (DPR) approval. In parallel, preliminary investigation work has commenced for the 500MW Balimela project.
• In Tamil Nadu, early-stage development is underway for the 1GW Upper Bhavani pumped storage project.
• In Gujarat, development is progressing on two projects: the 300MW Juni Kayaliwel project and the 300MW Amalpada project. Both projects have signed memoranda of understanding (MoUs).
• In Uttar Pradesh, the 1.5GW Panaura project has been identified as one of 33 potential pumped storage sites under evaluation in the state.
• In Maharashtra, construction has begun on the 1GW Bhivpuri and 1.5GW Bhavali projects, following DPR approvals in 2024–25. The 1.5GW Tarali and 1.8GW Shirwata projects are in the early development phase. Additionally, Maharashtra is advancing two 2GW pumped storage projects – Ghosla and Kamod – under a signed MoU with Megha Engineering & Infrastructures Ltd, with both projects expected to be completed by 2030.
• In Kerala, REC Limited has signed a memorandum of understanding to finance US$2.1 million in the pumped storage sector over the next five years. The state’s Energy Management Centre has identified several viable sites and is conducting pre-feasibility studies, with the most promising projects to be selected for detailed feasibility reports.

In addition to India’s support for PSH, conventional hydropower projects continue to progress, including major works completed on the 2GW Subansiri Lower hydroelectric project. 

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Indonesia continues to expand its hydropower sector in alignment with regional energy goals. In February 2025, the government released its updated Electricity Supply Business Plan (RUPTL) for 2025–2034, targeting an increase in renewable energy from 12% to 35% of the national energy mix, including an additional 16GW of hydropower capacity. Multiple projects are scheduled to commence operations in 2025: 

• Upper Cisokan Pumped Storage Power Plant: Indonesia’s first pumped storage facility (1,040MW), located in West Java. 
• PLTA Asahan 3 and Jatigede: Part of 37 strategic electricity projects commissioned in January 2025, collectively adding 3.2GW. 
• PLTA Peusangan and Merangin: Peusangan 1 (45MW) and 2 (43MW) in Aceh, and the 350MW Merangin plant in Jambi. 
• Batang Toru Hydropower Plant: A 510MW project in North Sumatra delayed by funding and environmental concerns, now expected online in 2025.

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Iran’s hydropower output increased year-on-year in 2024, supported by strong rainfall and spring run-off that brought many reservoirs to 90% capacity. Sardasht and Darian plants recorded exceptional generation, with Darian exceeding 104% of its previous year’s output by October 2024. By early 2025, spring rains caused Karun 4 and Rudbar Lorestan dams to reach full capacity. Iran’s Minister of Energy called for accelerated pumped storage development, expediting construction of Karun II, upgrades to existing plants at Siah Bisheh, and greater youth engagement in the sector. Four small and medium projects were approved in July 2024, alongside ongoing major electricity market reforms on pricing and market structure.

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Iraq’s President Abdul Latif Rashid called for urgent action on desertification, citing the increasing frequency of droughts and their impact on hydropower assets. He noted that nearly 40% of Iraq’s land is affected, with water resources under severe strain. According to Environment Minister Helo Al-Askari, Iraq is making progress on its climate targets and emphasising a transition to sustainable energy sources, including hydropower.

Activity in Italy’s pumped storage market is intensifying as the country prepares to integrate large volumes of variable renewable energy into a relatively fragmented power system. Several pumped storage projects are currently being developed with the goal of securing contracts in the soon-to-be-launched capacity market (MACSE). For example, in April 2024, Repower confirmed that its 600MW Campolattaro PSH project was awaiting final permitting approval. Just months later, in July, Edison and WeBuild announced plans to jointly develop the Pescopagano and Villarosa PSH projects, with a combined capacity of 500MW.

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At the start of 2024, Kazakhstan announced plans to add 26GW of new generating capacity, including 600MW of hydropower by 2027–28. A national programme to modernise energy and communal infrastructure was also approved. Renewable electricity output, including small hydropower, increased into early 2025. In November 2024, 200MW of small hydropower was procured through auctions (7.3¢/kWh) followed by a second auction for 100MW at competitive pricing.

In 2024, Kyrgyzstan marked 50 years of Toktogul, the country’s largest hydropower plant, which is now undergoing upgrades to increase capacity from 1.32GW to 1.38GW and extend its lifespan by 30 years. President Japarov inaugurated the 25MW Bala-Saruu plant which was completed in three years. A 1,305MW Suusamyr-Kokomeren cascade was announced in partnership with the China National Electric Engineering Co. The World Bank approved $13.6 million to update feasibility and environmental plans for Kambarata-1.

Kyrgyzstan’s government announced in 2024 that small hydropower will reach 405MW by 2027, with 18 new plants to be commissioned in 2025. Kulanak HPP (100MW) is due to be commissioned in 2026, and Kambarata-2 began early commissioning in 2025.

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Laos has emerged as a regional hub for hydropower development in South East Asia, with strong investment flows and export-driven policies. The country is targeting 13GW of capacity by 2030, up from 9GW in 2020. With an estimated potential of 26GW, expansion is ongoing. Over 4,000MW is under construction, including Pak Beng (912MW) and Pak Lay (770MW), while more than 6,000MW is under feasibility review, largely along the Mekong River. Strong investment from China, Thailand and Vietnam continues to drive growth, supporting both domestic supply and electricity exports.

Modernisation of Latvia’s hydropower plants on the Daugava River is set to progress following a €230 million loan issued by the Nordic Investment Bank to Latvenergo. Part of this investment will be used to increase plant efficiency, with the goal of ramping up hydropower production across the country.

The World Bank has approved US$45 million for Liberia’s Renewable Energy Solar Power Intervention Project (RESPITE), which will expand Mount Coffee hydropower plant from 88MW to 129MW and fund a 20MW solar facility – Liberia’s first utility-scale solar project. A feasibility study is also underway for a potential 150MW hydropower plant upstream on the St Paul River.

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Expansion of the Kruonis pumped storage plant in Lithuania is set to proceed following approval of a €105 million loan from the European Investment Bank. The funding will support construction of a fifth generating unit, which will add 110MW of capacity to the facility. Once complete, the new unit is expected to enhance grid stability, contribute to energy infrastructure modernisation and further support Lithuania’s transition to renewable energy.

Agreement has been reached on the 120MW Volobe II run-of-river project, clearing the way for financial close and construction. The €350 million plant will increase national generation capacity by approximately 20% and deliver 750GWh annually. Developed by CGHV – a consortium including Jovena, Scatec, Africa50 and Colas –Volobe II is expected to begin operation in 2028, subject to construction timelines.

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As ASEAN chair from January 2025, Malaysia is prioritising cross-border electricity trade from clean sources such as hydropower, solar and wind to strengthen regional energy security and sustainability. The country continues to advance its renewable energy strategy through policy initiatives and project development, with several hydropower projects moving towards commissioning. 

• Sarawak’s hydropower developments: Sarawak Energy is progressing major schemes, including the 1,285MW Baleh Hydroelectric Plant, expected to begin operations by 2029/2030. 
• Tenaga Nasional Berhad (TNB) projects: TNB is developing the 300MW Nenggiri Hydroelectric Plant in Kelantan, targeting operation by 2027. 
• Floating solar initiatives: In December 2024, Sarawak commissioned a 50MW floating solar project, co-owned with an independent power producer (IPP and Sarawak Energy), marking progress in solar-grid integration.

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Efforts to modernise existing hydropower plants continued in Mexico, including capacity additions where feasible.

The El Menzel PSH plant near Séfrou is one of the most significant projects in Africa’s pipeline. It is expected to enter commercial operation by the end of 2028, adding 300MW to the grid. The project will enhance the country's clean energy transition by integrating renewable energy sources, improving grid stability, and meeting peak electricity demand, with co-financing secured from the Islamic Development Bank.

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A draft energy transition strategy suggests authorities are considering 14,000MW of new hydropower in Mozambique, mainly from the Zambezi River, with 9,000MW to be added between 2030 and 2040. The plan builds on Cahora Bassa (2,075MW) and the under-construction 1,500MW Mphanda Nkuwa. It also outlines green industrial development and grid expansion, while controversially proposing to end power exports to South Africa after 2030.

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Namibia and Angola have signed an implementation agreement for the 600MW Baynes hydropower project on the Kunene River, which forms the border between the two countries. Output will be shared equally, and the site will also improve grid links between the two countries and support electricity exchange across the Southern African region. The plant is expected to operate during periods of intermediate and peak demand, helping to reduce reliance on costly imports.

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At the start of 2025, Nepal’s Supreme Court ordered a halt to development activities – including hydropower – within all protected areas. The ruling covers 12 national parks, six conservation areas, one hunting reserve, one wildlife reserve and 13 buffer zones. The Independent Power Producers’ Association of Nepal noted the decision could affect nearly 300 hydropower projects and up to 20GW of potential capacity.

Meanwhile, support for large-scale projects continues. India’s Renewable Energy Development Agency will invest in the 900MW Upper Karnali project, acquiring a 10% stake alongside its partnership with SJVN Limited. US-based BG Titan Group signed an MoU to develop the 650MW Tamakoshi 3 project. The UK’s British International Investment (BII) also agreed a trade loan to support Nepal’s renewable energy and manufacturing sectors, including hydropower.

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A new Norwegian pumped storage project is set to enter the construction phase following the announcement of a €113 million investment by Hydro in 2024. Full commissioning is expected to begin by 2029. The facility is designed to generate 84GWh of electricity annually by pumping water from the Fivlemyrane reservoir, 1,018m above sea level, to the Illvatn reservoir, which is approximately 350m higher. Storage capacity at Illvatn will be increased by the construction of a new drainage tunnel, allowing for a lower minimum regulated water level. 

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Pakistan aims to expand hydropower to 20GW by 2030. In 2024, the 884MW Suki Kinari run-of-river project became fully operational on the Kunhar River under the China–Pakistan Economic Corridor. The World Bank approved US$1 billion for the Dasu project, while encouraging acceleration. The excavation of Dasu’s foundation continued with the aim of completing the 4,320MW asset by 2027. Kuwait Fund for Arab Economic Development announced a loan of US$24 million to support the 800MW Mohmand project. Tarbela’s 5th Extension is set to boost capacity from 4,888MW to 6,418MW by 2026. The 4.2MW Nai Gaj Dam construction began in 2024. Pakistan’s major reservoirs recorded cumulative water storage which surpassed the five-year average in August 2024.

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The Bocas del Toro hydropower project (224MW, previously named Changuinola II) advanced in the final design phase. Two projects under construction are Burica (63MW) and Chuspa (10MW).

Itaipú Binacional, operators of one of the world’s largest hydropower plants, supplied Paraguay with 20.4TWh of electricity between January and December 2024 – a record for cumulative energy production. During 2024, hydropower supply to Paraguay rose by 4.5% compared to 2023. Sector investment has been focused on optimising existing assets rather than launching new large-scale projects. For example, the 200MW Acaray plant is undergoing major modernisation under a contract awarded to AFRY (working in consortium with Latinoconsult and supported by Inter-American Development Bank funding (IADB)). The goal is to improve capacity and extend the plant’s operational life.

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San Gabán III (209.3MW) is located in Carabaya province, Puno, and is designed to generate approximately 1.25TWh annually. It will bolster supply to Peru's southern grid and support the mining sector. The project is initiated in 2017 and was commissioned in April 2025. Environmental management plans have been implemented to mitigate impacts on nearby protected areas and to benefit local  communities through electrification and employment opportunities. In addition, construction of four small hydropower projects is more than 25% complete – CH Santa Lorenza (19MW), CH Anashironi (20MW), Centauro I (12.5MW), and Centauro II (12MW) – with operation scheduled between 2025 and 2027. Collectively, large-scale projects with a combined value exceeding US$7 billion – encompassing major mining developments, port logistics (notably the Chancay terminal) and heavy-industry installations – will increase the country’s energy demand in the coming years.

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The Philippines is targeting an ambitious 35% renewable energy share by 2030 and 50% by 2040, up from 22.8% in 2022. Recent policies include the auctioning of 300MW of impounding hydro and 4,250MW of PSH projects, which attracted nearly 7GW in pumped storage bids. A US$15 billion agreement with Masdar supports up to 1GW of solar, wind, and battery storage by 2030 and 10GW by 2035. Around 250MW of small hydropower is also planned, contributing to energy diversification and rural electrification.

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Commissioning of the Alto Tâmega hydropower plant marks the final stage in the development of Portugal’s large-scale Tâmega Complex. The 160MW plant is located at the base of the Alto Tâmega Dam, a 105-metre-high double-curved vault structure built with 220,000 cubic metres of concrete and spanning 335 metres across its crown. The fully operational Alto Tâmega complex has 1,158MW of installed capacity, including the 880MW Gouvães pumped storage facility and the 118MW Daivões plant.

Russia’s hydropower generation rose by 4.9% year-on-year in 2024. In early 2025, however, low snowmelt led to earlier-than-usual filling of the Volga-Karma hydropower cascade, highlighting growing hydrological variability. 

In 2024, the Russian Ministry of Energy unveiled its Energy Strategy to 2050, which was approved in April 2025. The strategy targets a 17% increase in hydropower generation from 2023 levels and includes 7.8GW of new hydro and pumped storage capacity in Siberia and the Far East.

As part of the Unified Electricity System Operator’s plans for grid modernisation through 2042, a new digital system – SPDM – has been introduced to automate hourly balancing and enhance grid reliability. RusHydro’s modernisation programme added 33.5MW of capacity in 2024 across Ust-Srednekanskaya, Ezminskaya, Nizhny Novgorod, Votkinskaya, Saratov, Volzhskaya and Cheboksary. Upgrades are also ongoing at the Uglich, Volzhskaya, Saratov and Nizhny Novgorod hydropower plants.

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Progress continues on the 206MW Ruzizi III Regional Hydropower Project, which will supply electricity equally to Rwanda, Burundi and the Democratic Republic of Congo. Developed as a public–private partnership, the project aims to finalise agreements with all stakeholders and financiers by September 2025. Construction would then begin, with commissioning scheduled for 2030.

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Construction has commenced on the 128MW Sambangalou hydroelectric project in Senegal, with VINCI overseeing the development alongside other partners. The project includes the construction of a dam and reservoir with a capacity of 4 billion m3, providing water for energy generation, irrigation and drinking. The electricity generated will benefit the Gambia River Basin Development Organisation countries, with VINCI Energies installing high-voltage lines.

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Plans to accelerate Serbia’s decarbonisation and strengthen energy security are due to move forward following the government’s announcement in March 2024 of a €400 million investment package. Backed by the European Union and the European Investment Bank, the funding will support modernisation of four existing hydropower plants and the development of the 2.4GW Bistrica pumped storage project.

Singapore is strengthening its energy strategy by importing regional hydropower and expanding grid infrastructure. It endorsed the COP29 Global Energy Storage and Grids Pledge in December 2024. With 95% of electricity from imported natural gas, improving storage and grids is key to integrating renewables. Under the LTMS-PIP cross-border electricity trading initiative Singapore began importing 100MW of hydropower from Laos in 2022, doubling to 200MW by 2024. It plans to import up to 6GW of low-carbon power by 2035.

The Solomon Islands has a 2030 target for nationwide electrification, and yet only around half of the population is currently connected to the national grid. Ongoing projects include the Tina River Hydropower Project, which is 23% complete and aims to provide 78GWh annually from a 15MW plant, meeting nearly 70% of Honiara’s electricity demand by early 2028. Construction of the project’s main dam began in November 2024, marked by a ceremony attended by ADB and government representatives

Spain is considering the introduction of a capacity market under its National Energy and Climate Plan, to ensure long-term grid reliability and support the integration of variable renewables. While the mechanism will be open to a range of technologies, several pumped storage projects are already moving forward in parallel, supported by targeted grants and regulatory approvals.

In March 2024, Iberdrola’s Alcántara pumped storage project received a €44.9 million grant from the Institute for Energy Diversification and Saving. The project will deliver 440MW of capacity and 15GWh of storage, with construction expected to begin in 2025 and commercial operation in mid-2030. Iberdrola’s Valdecañas project (275MW / 210GWh) secured administrative approval in July and has already commissioned its first pumping unit. The project uses existing infrastructure and includes a 15MW / 7.5MWh chemical battery to enhance flexibility.

A new partnership between Capital Energy and Verbund Green Power will assess two additional pumped storage plants with a combined capacity of 830MW. Development of the 200MW Salto de Chira project in the Canary Islands is also progressing, supported by a €300 million loan from the European Investment Bank. The facility will include 3.5GWh of storage and be connected to a desalination plant. 

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The 126MW Uma Oya project was inaugurated in April 2024 by the presidents of Sri Lanka and Iran. It will supply 290GWh annually and support irrigation. Sri Lanka is also progressing with its first 600MW pumped storage project, Maya Oya, as the Ceylon Electricity Board seeks long-term international funding to maintain affordable electricity tariffs for consumers.

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Sweden could significantly boost hydropower capacity and flexibility by upgrading existing plants, according to a recent study by AFRY supported by the Swedish Association of Engineers. The analysis estimates that up to 4GW of additional capacity could be added, which is equal to the output of approximately 3.5 nuclear reactors. This hydropower expansion could also unlock the integration of a further 1.2GW of wind power into the grid.

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Tajikistan aims to reach 100% renewable energy by 2032, with more than 90% already sourced from hydropower. The National Water Strategy, adopted in late 2024, supports climate and development goals through 2040. Meanwhile, nearly US$1 billion funding has been secured for the Rogun Hydropower Project, including loans and grants from the World Bank, AIIB, OPEC and the Islamic Development Bank. An additional US$19 million in state funding from the Government of Tajikistan has also been allocated. 

The country’s electricity exports totalled US$82.3 million in 2024 as grid upgrades continue with a €20 million EBRD grant. Modernisation of units at the Nurek and Qayroqqum (Kairakkum) hydropower projects were completed in 2024. The President announced the creation of a new oversight agency for energy. 

Russia and Tajikistan signed a cooperation agreement on the operation of the 670MW Sangtuda hydropower project, the second largest currently in operation in Tajikistan.

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East African power generation received a major boost in 2024 with the commissioning of six turbines at Tanzania’s Julius Nyerere Hydropower Plant. The 2,115MW facility on the Rufiji River comprises nine 235MW turbines and is designed to supply Tanzania, Kenya, Uganda and Zambia. The US$2.9 billion project is expected to enhance regional grid stability and cross-border electricity access.

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Thailand’s Electricity Generating Authority (EGAT) has completed a 24MW floating solar PV system at Ubol Ratana Dam in 2024, creating a hybrid solar–hydro setup. A 6MWh battery energy storage system enables smooth transitions, with solar power used during the day and hydro at night. Thailand is also negotiating hydropower imports from Laos. While no formal agreement has been signed, a deal is expected by 2025 or 2026, with exports potentially beginning in the late 2020s or early 2030s, depending on infrastructure completion. EGAT is also in the early stages of developing PSH projects in Thailand. 

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Uganda has fully commissioned the 600MW Karuma hydropower project, raising national generation capacity to 2,000MW. Built by Sinohydro, the US$1.7 billion plant was largely financed through loans from the Export-Import Bank of China, which provided US$1.4 billion. Uganda is now seeking funding for three additional Nile River projects – Ayago (840MW), Kiba (400MW) and Oriang (392MW) – which will boost capacity by a further 80%.

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The UK Government is among those pioneering political support for long duration electricity storage across Europe. In October 2024, it instructed sector regulator Ofgem to open the first round of applications for the Cap & Floor scheme, a revenue support mechanism designed to back new long-duration electricity storage projects. The scheme, which opened in April 2025, marks a major step forward for the UK’s PSH market. Several utilities and developers are now advancing project identification and development. Coire Glas reached a milestone in December 2024 with the completion of a £100 million exploratory works programme, including the drilling of a 1.2km tunnel in the Scottish Highlands. The 1.3GW project is expected to provide 30GWh of storage – enough to power three million homes for 24 hours. Progress is also underway on the 600MW Cruachan 2 project, with suppliers and a consulting firm appointed for the construction of the underground facility near Drax’s existing plant in Scotland.

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Hydropower attracted strong federal investment in the US in 2024. For example, in February the United States Department of Energy (DOE) awarded a total of $76 million to four proposed hydropower projects – three in Alaska and one in Washington State.

This funding will have a particular impact in Alaska, where small, remote communities find it extremely challenging to raise the capital required to construct the hydropower infrastructure needed to improve system reliability and assist the transition from diesel generation to renewables.

As a further vote of confidence in hydropower, the DOE’s Water Power Technologies Office (WPTO) announced in June investments worth more than $1.7 million in 16 hydropower and 12 marine power research and development projects at the department’s laboratories.

It also announced $1 million in funding from the Bipartisan Infrastructure Law to support the Hydropower Foundation’s hydropower workforce development programmes.

Meanwhile, the DOE’s Grid Deployment Office (GDO) announced the selection of 293 hydroelectric projects across 33 states to receive more than $430 million in Maintaining and Enhancing Hydroelectricity Incentive payments.

The funding, which comes from Section 247 of the BIL, can be used to fund grid resilience, dam safety improvements and/or environmental impact reduction.

However, the incentives for hydropower and other renewable energy projects under the BIL are at risk. The new government which came into place in early 2025 took measures to restrict or eliminate key incentives put into place by the previous administration – a situation to watch as the United States hydropower sector is working hard to establish a tax credit to support critical upgrades to existing hydropower projects.

The Department of Energy’s national laboratory system has also been busy conducting research and publishing reports relevant to the hydropower industry:

• The National Renewable Energy Laboratory (NREL) developed a detailed labour and construction cost-estimation tool for closed-loop PSH plants.
• NREL also published a report highlighting the significant untapped potential for hydropower in the US. It asserted that the development of medium-sized hydropower and pumped storage would advance the nation’s clean energy transition.
• Oak Ridge National Laboratory published an updated dataset revealing that 2,564 non-powered dams in the contiguous United States could theoretically generate a total of 4.1GW.
• The Pacific Northwest National Laboratory published a study that examined how climate change could impact hydropower generation in the US. It found that generation could increase by 5% by 2039 and 10% by 2059 throughout the United States due to increases in seasonal precipitation, albeit with regional disparities.

In power plant news, Duke Energy completed the upgrade of its four-unit, 1,680MW Bad Creek PSH facility. The refurbishment added 320MW of energy storage, significantly increasing reliability for consumers.

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In 2024, Uruguay’s total electricity production climbed to a record 14.4TWh. Hydropower accounted for over 50% of that output, more than doubling its year-on-year generation and cementing its role as the country’s leading renewable source. Work also began on the modernisation of the Rincón de Baygorria hydroelectric plant during 2024, with plans to increase installed capacity to 120MW. The project is managed by Andritz in consortium with SACEEM. Uruguay’s 2024-2043 Generation Expansion Plan forecasts annual electricity demand reaching 17.8TWh by 2043, highlighting the need for new solar and wind projects as hydropower’s relative contribution continues to decline.

Uzbekistan declared 2025 the “Year of Environmental Protection and Green Economy” and the Government indicated Uzbekistan has 10GW of hydropower potential and plans to reach 6GW by 2028. To support this goal, state-owned power utility Uzbekhydroenergo aims to attract US$6.5 billion to build 140 plants. Hydropower generation rose 20% in 2024, supported by the modernisation of the Naryn cascade. In July 2024, the Senate approved the Law on Electric Power industry and the ADB approved $400 million for policy reforms to the market-led power sector. 

President Mirziyoyev announced plans to increase private investment in green energy and to build nearly 3,000 micro-hydro plants which will add over 160MW by 2026, of which more than 1,000 plants will be commissioned in 2025. Zarchob-1A HPP was commissioned on the nation’s independence anniversary. 

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In recent years, Venezuela’s hydropower sector has struggled with declining capacity due to economic challenges and structural neglect of key infrastructure, such as the Guri Dam (10,200MW) and the Caroní River cascade. In response, recent efforts have been focused on restoring existing facilities. During 2024, for example, the General José Antonio Páez hydroelectric complex in Barinas was reactivated, adding 120MW to the grid. Modernisation investments are also increasing, often backed by development banks. In December 2024, the Latin American Development Bank (CAF) authorised a $380 million loan to help improve the efficiency and extend the operational life of the country’s Simón Bolívar plant. The project will cost US$610.43 million in total.

Vietnam remains a key hydropower producer, with growing investment in PSH supported by overseas funding and a revised energy plan. The country’s Power Development Plan VIII highlights hydropower’s role in ensuring grid stability amid rising solar and wind capacity. Vietnam continues to address environmental challenges, particularly flood management and transboundary water coordination. In October 2024, India’s Adani Group announced plans to develop 10GW of overseas hydropower projects, with Vietnam identified as a key country for potential investment.  

As part of the Unified Electricity System Operator’s plans for grid modernisation through 2042, a new digital system – SPDM – has been introduced to automate hourly balancing and enhance grid reliability. RusHydro’s modernisation programme added 33.5MW of capacity in 2024 across Ust-Srednekanskaya, Ezminskaya, Nizhny Novgorod, Votkinskaya, Saratov, Volzhskaya and Cheboksary. Upgrades are also ongoing at the Uglich, Volzhskaya, Saratov and Nizhny Novgorod hydropower plants.

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Severe drought has reduced generation at the Kariba hydropower station, causing power cuts of up to 21 hours a day in both Zambia and Zimbabwe. While emergency measures are in place, Zambia is exploring new supply options, including raising solar to 30%, expanding hydropower in the wetter north, and controversially advancing coal projects that could worsen climate-related drought.

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