Hydropower faces several challenges despite its many benefits, the Al-Attiyah Foundation said and noted “environmental concerns remain significant”.

In its report titled “Ebb and Flow: The Future of Hydropower”, Al-Attiyah Foundation said: “Hydropower remains one of the most reliable and established sources of renewable energy, capable of addressing both the growing demand for electricity and the urgent need to reduce carbon emissions.”

Hydropower accounts for approximately 14% of global power generation and is the largest contributor to renewable energy, representing over 60% of the world’s renewable energy output in 2023 (wind generated 7.8% of global electricity and solar 5.5%).

Currently, China has the largest installed capacity of hydroelectricity and is also the world’s largest producer, accounting for 30% of global output in 2022.

The 1,303TWh generated in 2022 accounted for 15% of China’s electricity output that year. Around 80% of new hydropower capacity added globally in 2021 was in China.

These new plants helped bring the total installed capacity of hydropower and pumped storage in China to 413GW as of the end of 2022. This is more than the combined total of Brazil, the US, Canada, India and France, respectively the countries with the world’s second, third, fourth, fifth and tenth largest installed hydro capacities in the world.

There are several advantages of hydropower over other renewable sources. For example, hydropower is uniquely positioned to provide consistent baseload power, unlike solar and wind, which are dependent on weather conditions.

This capacity for round-the-clock generation ensures grid stability and supports the increasing penetration of variable renewable energy sources.

In addition, through pumped storage, hydropower plants can store excess energy during low-demand periods and release it during peak demand, making them a valuable tool for balancing the grid. Pumped storage hydropower is the world's largest battery technology, with a global installed capacity of nearly 200GW – this accounts for over 94% of the world’s long duration energy storage capacity, well ahead of lithium-ion and other battery types.

“Despite these benefits, hydropower faces several challenges. The report notes that environmental concerns remain significant. Large-scale dam projects have the potential to disrupt ecosystems, alter river flow patterns, and impact local communities. This has led to increased scrutiny and calls for more stringent environmental regulations,” Al-Attiyah Foundation said.

Climate change could also exacerbate hydropower’s vulnerabilities. Water availability is becoming more unpredictable in many regions due to prolonged droughts, reduced snowfall, and changing rainfall patterns. As a result, hydropower generation in key regions, such as parts of Africa and the southwestern United States, has faced disruptions, Al-Attiyah Foundation added.