Page 4 - AsiaElec Week 26 2021

AsiaElec COMMENTARY AsiaElec

Hydro’s elderly turbines need fresh

investment to contribute to net zero

Hydro needs new investment to replace elderly infrastructure
and accelerate the road to net zero, the IEA says

P THE IEA has warned that hydropower risks Around half of hydropower’s economically
being left behind in the race towards net zero, as viable potential worldwide is untapped, and
WHAT: a new report found that the pace of development this potential is particularly high in emerging
Hydro is the “forgotten in the hydro sector had slowed and would con- economies and developing economies, where it
giant” of the energy tinue to do so over the next decade. reaches almost 60%.
sector This could put at risk the ambitions of coun- The report said that stimulating new expan-
tries across the globe to reach net zero by 2050 sion in hydro capacity would require govern-
WHY: while ensuring reliable and affordable energy ments to make hydropower projects more
In 2020, hydro provided supplies. financially transparent to ensure they are eco-
one sixth of global However, terming hydro the “forgotten giant” nomically viable and sufficiently attractive to
generation, or 4,500 TWh of the energy sector, the IEA was optimistic that investors.
hydro had the potential to speed up the energy Secondly, governments must ensure robust
WHAT NEXT: transition, support wind and solar expan- sustainability standards to minimise environ-
Governments must ensure sion and help countries achieve their climate mental impact and damage to the natural world.
robust sustainability ambitions. “Hydropower’s advantages can make it a nat-
standards to minimise “Hydropower is the forgotten giant of clean ural enabler of secure transitions in many coun-
environmental impact electricity, and it needs to be put squarely back tries as they shift to higher and higher shares
and damage to the on the energy and climate agenda if countries are of solar and wind – provided that hydropower
natural world. serious about meeting their net zero goals,” said projects are developed in a sustainable and cli-
Fatih Birol, the IEA Executive Director. mate-resilient way,” Birol said.

Growth Countries
The report noted that global hydro capacity was Based on today’s policy settings, China is set to
predicted to increase by 17% between 2021 and remain the single largest hydropower market
2030 from 1,330 GW in 2020 to just over 1,555 until 2030, accounting for 40% of global expan-
GW by 2030, led by China, India, Turkey and sion, followed by India.
Ethiopia. However, China’s share of global hydropower
In 2020, hydro provided one sixth of global additions has been declining due to the decreas-
generation, or 4,500 TWh, making it the largest ing availability of economically attractive sites
source of low-carbon power – and more than and growing concerns over social and environ-
wind, solar and other renewables combined. mental impacts, the report found.
It was also higher than nuclear, which the IEA Indeed, emerging and developing coun-
does not classify as low-carbon, which generated tries, including China and India, are forecast to
2,800 TWh. account for 90% of the global hydro additions
Its output has increased 70% since 2000, the of 230 GW between 2021 and 2030. Global
report found, but its share of global electricity hydro additions stood at 300 GW in 2011-2020,
supply has held steady because of the increases according to data in the report.
in wind, solar PV, natural gas and coal. Chinese banks and investors are by the big-
Indeed, while hydro accounted for 17-19% gest investors in hydro, accounting for 70% of
of global electricity generation in the 1990s, this hydro investment in sub-Saharan Africa, 43% in
share has fallen slightly since the early 2000s to Asia-Pacific (excluding India) and 40% in Latin
around 17% due to increasing amounts of wind America.
and solar capacity and the growth of natural gas- The report also warned that in Europe and
based power generation. North America, hydro capacity is elderly and
Hydro usage also varies across countries and requires major investment. Up to $127bn is
region. It provides over 50% of power needs in needed by 2030, 25% of forecast hydro invest-
28 emerging and developing economies, with ment, to modernise old plants in advanced
800mn people, while in some countries its con- economies. This compares with the $300bn
tribution is negligible. needed to bring all hydro capacity up to modern

P4 www. NEWSBASE .com Week 26 30•June•2021