Small Hydropower Market Size

Small Hydropower Market Size

Small Hydropower Market size on installation base was over 110 GW in 2015.The industry expects gains at over 2.5% CAGR up to 2024./p>

Global domestic electricity consumption increased by 1.2% from 2013 and estimated at more than 20,300 Twh in 2014. Asia electricity consumption was dominant and comprised over 40% in 2014. North America, noted as the second largest consumer with consumption at over 4,365 Twh in the same year. Rapid industrialization and increasing population are expected driving factors to leverage small hydropower (SHP) market size growth./p>

Increasing GHG emission owing to rising power consumption has fueled FERC & UNIDO to adopt certain measures pertaining to renewable energy. Growing environmental consciousness and reducing dependency on conventional resources are projected to foster global small hydropower market size growth./p>

Monetary concessions and credits are given to industries for producing and consuming sustainable resources including wind, solar, and hydro. Hydropower accounted for 16.60% of the global renewable electricity consumption in 2014. Approximately 37 GW capacities were added in 2014, increasing total capacity by 3.6% approximately./p>

China, Brazil, U.S., Canada, Russia, India were the major industry contributors. China was the major contributor by accounting more than 25% of the global hydropower capacity in 2014. Abundant hydro potential location accompanied by skilled labor availability may positively drive small hydropower market growth./p>

Rising industrialization in BRICS nations, authorities are focusing on rural and remote areas to supply electricity. Inability to transit energy in remote & rural areas owing to grid unavailability should increase small hydropower demand.
 

Small hydropower plant is specifically designed to serve remote areas. These plants can be grid connected and off grid; off grid is mainly suitable for where grid connectivity is not available.
 

Energy policies are implemented by governments pertaining to total electricity generation capital cost, maintaining safety, communities resettling and manpower availability to build and operate the plants. SHPPs are being designed to reduce high capital costs and to minimize environmental impact on the local community.
 

SHPP is often built using existing dams as these plants does not require huge infrastructure and facility, which is highly relevant for countries with less capital. These plants are also constructed within the river flow, termed as run of river; ideal for areas with no electric infrastructure. Transformers, generators, turbines, and reservoirs are the essentials to build SHPPs.
 

Abandoned hydro sites utilization is another lucrative factor to positively influence small hydropower market growth. Many old sites that need refurbishment but constraint by budgets can be operated as SHPPs.
 

Tajikistan is eighth richest nation in terms of hydropower resources globally. However, due to lack of capital and investment, this resource is underutilized with electricity supplies and still failing to meet country energy needs. Tajikistan government is now working to solve power problems by building mini plants. The project is focused to meet overall energy requirement by building approximately 170 mini plants in remote & rural areas.
 

The technical difficulties to upgrade existing power transmission lines in rural areas may hinder the small hydropower market growth. These lines were initially designed for centralized electricity generation model; not with the intentions to compatible with large volumes generated locally.
 

Seasonal diversification in stream flow results in variation and disturbance in energy supply. Careful planning is required to ensure sufficient energy production throughout the year, particularly in dry season and areas. Additional logistics & transportation cost due to remote location may affect the small hydropower market price trend.