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As per the International Renewable Energy Agency (IRENA), hydropower is one of the most utilized forms of renewable energy, with an installed capacity of around 1.3 TW in 2018. Small hydropower is a reliable and low-cost renewable energy, mainly used in remote areas. Analysts in the report, titled “Small Hydropower Market: Global Market Analysis, Insights, And Forecast, 2019-2026” found that that global market is predicted to exhibit 3.06% during the forecast period. In 2018, the global market installed capacity of 170 GW and is likely to surpass 214 GW by 2026. The growing demand for clean energy is driving electricity consumption across the world. Hydropower plants generate electricity to overcome environmental concerns, ensuring a sustainable environment. Small hydropower, also called SHP is a low-cost and reliable form of renewable energy than other sources. It offers several social, environmental and economic benefits and can be easily handled in remote areas, favoring the small hydropower market growth.
Small Hydropower with an Installed Capacity of 1-10 MW Leads the Market
The market size is expected to increase owing to the rising demand for 1-10 MW installed capacity of small hydropower. This capacity range covers around 80% of share in the global market. The other categorization is below 1 MW installed capacity, covering approx. 20% of the share. 1-10 MW SHP projects have lower investment costs than below 1 MW. These have less operational and maintenance cost, which in turn, stokes their demand. Enabled by these benefits, the 1-10 MW installed capacity of SHP is expected to foster the small hydropower market size.
GanZ EEM and Blue World Power & Resources to Supply Hydroelectric Equipment for SHP Plant
Recently in June 2019, RusHydro plans to build two small hydropower plants on Kuban River in Russia. These plants called Krasnogorskaya 1 and Krasnogorskaya 2 have an installed capacity of 24.9 MW. The company aims to bring significant improvements in the hydrological system of the Kuban River. Several companies are planning to install SHP plants, especially in developing regions in order to increase their market share. Another company called Ganz Engineering and Energetics Machinery or Ganz EEM with its partner Blue World Power Energy and Resources supplied hydroelectric equipment for the successful installation of small hydropower plant in Mpumalanga in April 2018. Other companies are also planning to construct SHP plants to help remote areas overcome growing concerns on environment such as GHG emissions, aiding the small hydropower market revenue.
Some of the other companies highlighted in the report are Innergex, Blue World Power Energy and Resources, Pernix Group, Inc., Dulas Ltd, Voltalia, SN Aboitiz Power, Inc., Velcan Energy, Green Highland Renewables Ltd, Voith Group, RusHydro, Mavel a.s., PNOC Renewables Corporation, Statkraft, and Him Urja Private Limited.
Rising Support from Government to Boost the Market in Asia Pacific
The market in Europe is expected to grow substantially in the forecast years. Favorable government guidelines are stimulating growth in the market. The European Union in 2009 passed a rule that all European nations should increase the renewable share by 20%. As per the report, Europe covers around 45% of the share in the global market. Other regions such as Latin America and North America are expected to grow moderately during the forecast period. The USA accounted for the maximum share in the market, however, now the growth has become stagnant.
The small hydropower market in Asia Pacific is expected to lead owing to the increasing support from governments. China accounts for the maximum share in the global market. The Chines government is increasingly investing for the construction of SHP plants. Moreover, initially, the focus of these plants was to supply electricity to mountainous areas and the government successfully achieved this in collaboration with small-scale water conservancy projects. The small hydropower potential is less in India and Japan, as these two countries have less developed SHP. However, governments are continuously investing in small hydropower projects to ensure electricity supply to all areas. Himalayan and Ghat regions have set up SHP projects in remote spaces. These projects are maintained and handled by tea garden owners or Gram Panchayat. This shows that the small hydropower market size is expected to further rise in the forecast period.
Browse Complete Report Details: https://www.fortunebusinessinsights.com/industry-reports/small-hydropower-market-100214
The global market can be segmented into the following categories: