Global Small Hydropower Market

Small Hydropower Market was valued at USD 2.2 billion in 2021 and is forecast to touch USD 2.7 billion in 2029, and the market is expected to grow at a CAGR of 2.5% from 2022-2029, owing to the increasing investment in renewable energy generation as well as rural automation.

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Key Drivers

Increased focus towards rural electrification in emerging and underdeveloped economies, reducing dependency on conventional resources, and low maintenance cost and capital investment is driving the growth of the Small Hydropower market. Factors which include the growing demand for reliable electricity, rising investments for inexhaustible and small hydropower projects due to climate change along with policy initiatives are projected to boost the market growth. The low operational cost due to the need for less labor management and site maintenance is expected to fuel the market growth. Additionally, governments across several developing and underdeveloped nations have introduced various initiatives to enhance rural electrification, thereby catalyzing the market growth. Ongoing technological advancements, such as increasing incorporation of the Internet of Things (IoT) with SHP components, will offer enormous opportunities to the market. Other factors, which include the enforcement of favorable policies for sustainable development, along with the upgradation of abandoned hydro sites, are anticipated to drive the market further. The emerging need to modernize small hydropower projects to encourage power generation and extend the life of assets to meet the growing demand for electricity is anticipated to fuel the market growth. Rising greenhouse emissions due to increasing power consumption have encouraged the United Nations Industrial Development Organization (UNIDO) and Federal Energy Regulatory Commission (FERC) to adopt certain renewable energy measures, which has bolstered the market growth.

However, the cost associated with operating small hydropower plant when compared with New Solar Photovoltaic (PV) and Onshore Wind Power is high, which might hamper the growth of the market.

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Capacity Segment Analysis

Based on capacity, the market is segmented into Up to 1 MW and 1–10 MW. Among these, the 1-10 MW segment is expected to grow at a higher CAGR during the forecast period, owing to the increasing investment for rural electrification. The growing government support which includes the deployment of decentralized projects to promote rural automation and huge potential of small hydropower projects will boost the market growth. In addition, the lower operational and maintenance cost due to the lower levelised cost of electricity is forecast to augment the market size.

Type Segment Analysis

On the basis of type, the market is segmented into mini hydropower and micro hydropower. Among these, the mini hydropower segment is expected to grow at a higher CAGR during the forecast period. The installations in mini-hydropower segment is driven by rural electrification. China has led the way for installing small hydropower plants. Increasing prominence of mini hydropower due to increasing investments by the government to develop hydropower systems near various water reservoirs has driven the market growth. For example, as per the U.S. Department of Energy, a 10-kW micro hydropower system offers sufficient power for a hobby farm, a small resort, and a large home. Hence, hydropower systems can qualify as micro hydropower systems and are ideal for small business owners, including ranchers & farmers. On the other hand, developed countries such as, the U.S. and Norway, are installing small hydropower plants to enhance the renewable energy percentage in the nation’s energy mix.

Component Segment Analysis

Based on component, the market is segmented into electromechanical equipment, electric infrastructure, and civil works. Among these, the civil work segment is expected to witness a higher CAGR growth during the forecast period. Civil works account for maximum share of project costs in small hydropower projects as it helps to properly guide the water on turbines and enhances water head and civil structures. These simple public structures are cheaper than large hydropower plants but constitute larger share of total project cost, thus proliferating the growth of the segment.

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Regional Analysis

Based on the Region, Asia-Pacific is projected to witness a higher CAGR growth during the forecast period. This is attributed to the rising investments in rural electrification and off-grid energy generation in countries like China, India, and Vietnam. Moreover, the increasing need to supply electricity in remote areas coupled with the rising environmental concerns is expected to accelerate the growth of the market in Asia-Pacific region.

Europe is estimated to hold a prominent share in the market over the forecast period, due to the growing greenhouse gas (GHG) emissions concerns along with the rising electricity generation costs through non-renewable resources. Other factors which include accelerating population, growing demand for effective and clean energy, strategic government initiatives such as allowances by the European Union for energy conservation and energy efficiency projects are expected to expand the regional growth.

Top Market Players

The key players in the market include Voith GmbH & Co, ANDRITZ Inc, GE Renewable Energy, Toshiba Corporation, Siemens AG, Bharat Heavy Electrical Ltd (BHEL), Gilbert Gilkes & Gordon, Flovel Energy Pvt. Ltd, Alstom S.A., and StatKraft AS among others.

Key Developments:

• • In 2021, KONČAR, a Croatian transport, electrical, and energy company, entered into a contract with Japan to manufacture, supervise, and design three generator assemblies for two small hydropower plants (SHPPs). The project is expected to complete its first stage after the synchronous generator with nominal power of 5.2 MVA will be commissioned and the second stage to be completed after the synchronous generator with nominal power of 5.2 MVA will designate, according to the firm.
  • In 2021, Zarchob small hydropower plant was commissioned in Uzbekistan, according to the developer of Uzbekistan’s state hydropower. The project will be a part of national energy strategy of Uzbekistan to produce electricity from inexhaustible sources by 2030. The project further aims to produce 5GW of solar energy, 3.8GW of hydro energy, and 3GW of wind energy.
  • In 2021, Isagen SA, a Colombian power company, acquired two 19.9-MW small hydropower plants (HPPs) based in the department of Antioquia. This acquisition will help Isagen to expand its footprint in non-conventional renewables with the total investment of COP 700 billion or about USD 194.8 million.
  • In 2019, Voith GmbH & Co. received an order to manufacture, design, and supply the electromechanical equipment for small hydropower plant named as Kabu 16 in Burundi Africa. The Voith GmbH & Co. is responsible for valves, generators, and two vertical Francis turbine.

Segments covered in the Report:

The Global Small Hydropower market has been segmented based on Capacity, Type, Component, and Key Region. Based on Capacity, the market is segmented into Up to 1 MW and 1–10 MW. Based on Type, the market is segmented into Micro Hydropower and Mini Hydropower. Based on Component, the market is segmented into Electromechanical Equipment, Electric infrastructure, Civil Works and Others.

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Key questions answered in this research report:

• • At what pace is the Global Small Hydropower market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in the Global Small Hydropower market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenue and forecast breakdowns? Which are the major regional revenue pockets for growth in the Global Small Hydropower market?
  • What are the components of Global Small Hydropower market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

 

Report Coverage	Details
Market Revenues (2021)	USD 2.2 billion
Market Base Year	2021
Market Forecast Period	2022-2029
Base Year & Forecast Units	Value (USD Billion)
Market Segment	By Capacity, By Type, By Component and By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Voith GmbH & Co, ANDRITZ Inc, GE Renewable Energy, Toshiba Corporation, Siemens AG, Bharat Heavy Electrical Ltd (BHEL), Gilbert Gilkes & Gordon, Flovel Energy Pvt. Ltd, Alstom S.A., and StatKraft AS among others.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Small Hydropower Market by Capacity

• • Up to 1 MW
  • 1–10 MW

Global Small Hydropower Market by Type

• • Micro Hydropower
  • Mini Hydropower

Global Small Hydropower Market by Component

• • Electromechanical Equipment
    • Turbine
    • Generator
    • Other Equipment (includes inlet valves gates, penstock, governors, and auxiliaries)
  • Electric Infrastructure
  • Civil Works
  • Others (includes engineering, structural, management, environmental mitigation, and project development)

Global Small Hydropower Market by Region

• • North America Small Hydropower Market (Option 1: As a part of the free 25% customization)
    • By Capacity
    • By Type
    • By Component
    • US Market All-Up
    • Canada Market All-Up
  • Europe Small Hydropower Market (Option 2: As a part of the free 25% customization)
    • By Capacity
    • By Type
    • By Component
    • UK Market All-Up
    • Germany Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Small Hydropower Market (Option 3: As a part of the free 25% customization)
    • By Capacity
    • By Type
    • By Component
    • China Market All-Up
    • India Market All-Up
    • Rest of Asia-Pacific Market All-Up
  • RoW Small Hydropower Market (Option 4: As a part of the free 25% customization)
    • By Capacity
    • By Type
    • By Component
    • U.A.E. All-Up
    • Brazil Market All-Up
    • Rest of World (remaining countries on LAMEA) Market All-Up

Leading Market Players (Option 5: As a part of the free 25% customization – Profiles of 5 Additional Companies of your Choice)

• • Voith GmbH & Co
  • ANDRITZ Inc
  • GE Renewable Energy
  • Toshiba Corporation
  • Siemens AG
  • Bharat Heavy Electrical Ltd (BHEL)
  • Gilbert Gilkes & Gordon
  • Flovel Energy Pvt. Ltd
  • Alstom S.A.
  • StatKraft AS