The global small hydropower market is likely to grow at an accelerated pace with increasing investments in energy efficient projects. This information is shared by Fortune Business Insights in its report, titled “Small Hydropower Market Size, Share and Global Trend by Type (Mini Hydro Power, Micro Hydro Power, Pico Hydro Power) and Geography Forecast till 2026.” The report offers valuable insights into factors enabling growth in the market.
The small hydropower plant uses the flowing water to run a turbine for producing electricity. Governments across the world are making huge investments in energy efficient projects, which is a potential growth trigger for the market. Moreover, small hydropower plants are commonly used to generate electricity in remote regions. Cumulative impact of these factors on the market is likely to be positive.
Small Hydropower Generation is Gaining Traction in Europe
The small hydropower market in Europe is anticipated to grow faster than other regions by 2025. This is mainly attributable to increasing hydropower promotions by European Small Hydropower Association or ESHA. Countries in this region are focusing on sustainable technology to prevent any environmental impacts. Adoption of small hydropower technology is expected to drive the market in Europe to produce enough electricity.
The market in Asia Pacific is likely to register considerable growth in the forecast years. The countries such as India, Nepal, Bangladesh, and China are more feasible for small hydropower projects owing to their increasing rural base. Increasing population in these countries is expected to fuel the demand for generating electricity. Governments are also taking initiatives towards small hydropower development, more beneficial to people living in remote and rural areas. These factors are anticipated to create growth opportunities for the market between 2017 and 2026. The Middle East & Africa is expected to register rapid growth owing to the rising demand for electricity. Companies and governments in this region are planning to invest in the cleanest form of energy to reduce emissions.
Rising Need for Sustainable Renewable Energy Propels Growth in the Market
“The electricity consumption is increasing on account of rising population across the world, which is expected to augment adoption of small hydropower systems,” said a lead analyst at Fortune Business Insights. “The rising shift towards sustainable renewable energy in rural and remote places is expected to drive the market,” he added. The long-life cycle and low investment cost associated with installing small hydropower generators is anticipated to enable growth in the market. The long life ensures reliable investments and offers economic benefits.
Growing industrialization and demand for energy across the world acts as a potential growth trigger in the market. Small hydropower resources offer an abundant source for excellent power generation and ensures reliable energy supply in the long run. The report predicts such factors to encourage growth in the market by 2026.
Contrary to this, some authorization procedures may hamper the growth of the market. Procedures associated with licensing are time-consuming and complicated in some countries, which acts as a major stumbling block.
High Competition Encourages Companies to Focus on their Operational Activities
The global small hydropower market is likely to witness intense competition, besides which prevailing trends are likely to get swayed by government regulations and policies. For instance, IIT Roorkee under the government of Ministry of New and Renewable Energy (MNRE) established a research and development (R&D) laboratory in April 2018. This lab is fully automatic and the research is conducted in hydraulic turbines. Furthermore, it is designed to help India compete with international markets.
Some of the leading players operating in the global market are RusHydro, Clean Innovation, Agder Energi, China Yangtze Power Co., Ltd., Eletrobras, Statkraft, Hydro Quebec, Renewable First Ltd., European Small Hydropower Association, BC Hydro and Power Authority, Energy Eastern Europe Power GmBH, Vidyachal Hydro Power Pvt. Ltd., Toshiba Hydroelectric Power, Him Urja Pvt. Ltd., and Duke Energy Corporation.