The small hydropower market uses natural water resources to generate electricity in a sustainable and environment-friendly manner. Small hydropower plants make use of turbines to convert the kinetic energy of flowing or falling water into mechanical energy, which further powers electric generators. These facilities operate on a small scale with an installed capacity of less than 10MW per plant. They are utilized to provide power supply in remote areas and off-grid applications where conventional power sources face challenges.

The Global Small Hydropower Market is estimated to be valued at USD 2.77 Billion in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period 2024-2031.

Small Hydropower Market Demand focus on renewable energy sources and climate change mitigation efforts are driving the demand for small hydropower plants across the world. Additionally, small hydropower serves as a reliable alternative to fossil fuel-based decentralized power systems.

Key Takeaways

Key players operating in the small hydropower market are VOITH GmbH, Andritz Hydro, GE, Siemens, Flovel Energy Private Limited, BHEL and SNC-Lavalin. These companies are focusing on capacity expansion and facility upgradation to tap the growing demand.

The demand for small hydropower is surging from off-grid applications in remote areas with inadequate conventional power infrastructure. It offers a cost-effective and sustainable solution for decentralized electricity needs of rural communities.

Advancements in turbine design and control systems have enhanced the efficiency and competitiveness of small hydropower plants. Tech solutions like Internet of Things enable remote monitoring of assets and performance optimization.

Market Trends

Rise in Hybrid Systems - To maximize power output throughout the year, key players are focusing on hybridizing small hydropower with other renewables like solar and wind. This improves plant load factor.

Digitization of Assets - Adoption of smart technologies allows predictive maintenance and condition monitoring of turbines & generators. It helps minimize downtime through remote troubleshooting.

Modular Configuration - Prefabricated and modular design of plant components cuts installation time. It makes small hydropower suitable for rapid rollout to meet urgent power needs in disaster-hit areas.

Market Opportunities

Off-grid Electrification - Remote communities, especially in developing nations, present a huge market for decentralized off-grid hydropower solutions.

Rural Industrialization - Growing food processing and cottage industries in villages raise the need for reliable and affordable power supply through small hydropower.

Hydropower Tenders - Governments worldwide are announcing tenders for setting up new hydropower projects or upgrading aging facilities to substitute fossil fuels.

Impact of COVID-19 on Small Hydropower Market Growth

The small hydropower market was growing steadily before the COVID-19 pandemic. However, the imposition of lockdowns and supply chain disruptions severely impacted market growth in 2020. With construction activities coming to a halt, new project installations declined sharply. Challenges in obtaining components and transporting equipment to project sites also led to delays in commissioning of ongoing projects. Power demand reduced significantly due to muted industrial and commercial activities during lockdowns. This created excess power generation capacities, reducing the appeal for new small hydropower projects.

However, with economies restarting post lockdowns, the small hydropower market is projected to bounce back. Power demand is recovering as industries resume operations. Many countries are also announcing incentives and investments to boost renewable energy adoption. This will aid faster commissioning of delayed projects. To curb reliance on fossil fuels and reduce emissions, governments are promoting indigenous and greener power sources. This is expected to drive increased interests in small scale hydropower projects. Technology advancements are also enhancing project viability in remote areas. Investments in mini grid and off-grid systems will further support rural electrification via small hydropower.

Geographically, China dominates the small hydropower market in terms of installed capacity and project pipeline. Its mountainous terrain and policy push for clean energy have propelled strong growth. India is another high potential market attributed to its vast hydro resources. Southeast Asian countries like Vietnam and Indonesia are also focusing on hydropower to meet energy demands of industrialization. In Europe, Norway, Switzerland and Austria have considerable small hydropower capacities and continue adding new projects. Meanwhile, regions like Latin America and Africa are witnessing rising interests due to their untapped rivers and need for accessible power in villages. Overall, emerging economies across Asia Pacific and Africa are projected to grow the fastest on global front.

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About Author:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)