Hydropower represents a complex solution for addressing water and energy challenges, while also driving economic and social progress. Being the leading source of renewable energy based on installed capacity, hydropower plays a vital role in promoting the shift towards a low-carbon future. The global hydropower installed capacity has reached 1,256 GW in 2022, accounting for 37% of the total renewable capacity, indicating vast potential for expansion, with an estimated technical generation potential of 14,576 TWh/yr.

To achieve ambitious objectives, there is a necessity to significantly increase the global average annual additions to hydropower capacity to nearly 50 GW during the projection period. The participation of Chinese companies is expected to be substantial in upcoming hydropower projects, especially in regions like sub-Saharan Africa, Southeast Asia, and Latin America. Nevertheless, challenges such as water scarcity induced by climate change and aging plant infrastructure present significant obstacles, requiring efforts in modernization, refurbishment, and digitalization.

In the global effort to reduce greenhouse gas emissions and address climate change, hydropower emerges as a crucial element in transitioning towards a sustainable energy future. Through increased investment, favorable policy frameworks, and the overcoming of current challenges, the full potential of hydropower can be harnessed, paving the way towards a cleaner, more sustainable future.