An estimated 30 GW of new hydropower capacity came on line in 2012, increasing global installed capacity by about 3% to an estimated 990 GW.
The top countries for hydro capacity are China, Brazil, the United States, Canada, and Russia, which together account for 52% of total installed capacity.
Ranked by generation, the order is the same except that Canada’s generation exceeds that of the United States, where hydropower is more load-following.
Globally, hydropower generated an estimated 3,700 TWh of electricity during 2012, including approximately 864 TWh in China, followed by Brazil (441 TWh), Canada (376 TWh), the United States (277 TWh), Russia (155 TWh), Norway (143 TWh), and India (>116 TWh).
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China again led the world for new capacity additions, followed by Turkey, Brazil, Vietnam, and Russia.
China installed 15.5 GW of new capacity to end the year with almost 229 GW of total installed hydropower capacity, and 20.3 GW of pumped storage capacity. The country’s hydropower output was 864 TWh during the year, almost a third more than the 2011 total, due to increased capacity and improved hydrological conditions.
In China, a 812 MW Francis turbine generator, the world’s largest unit, was added to the Xianjiaba plant, which will total 6.4 GW when completed. It will be the country’s third largest hydropower facility, after the Three Gorges plant (22.5 GW) and the Xiluodu plant (13.9 GW when completed).
The Three Gorges achieved full capacity after the last of 32 generators began operation in July, and reached a record output of 98.1 TWh in 2012. In its current five-year plan, China targets 290 GW of installed capacity by 2015, while striving to improve resettlement policies for affected local populations and to strengthen ecological protection.
Turkey is increasing its hydropower capacity at a rapid rate to address chronic shortages of electricity and frequent power outages. Approximately 2 GW was added in 2012, to end the year with about 21 GW installed. Construction continued on the 1.2 MW Ilisu Dam on the Tigris River, while scientists prepared for the removal of cultural monuments in areas that will be submerged.
Brazil placed 1.86 GW of hydropower into operation in 2012, including 394 MW of reported small-scale (<30 MW) capacity, for a total of 84 GW by year’s end.15 About 400 MW was added at the Estraito plant and 350 MW at the Maua plant.16 In addition, nine (of a total 44) 70 MW bulb-type in-stream turbines came on line at the Santo Antonio run-of-river project on the Madeira River in 2012, with two more installed in early 2013. Also well under way on the Madeira River is the 3.75 GW Jirau plant, applying fifty 75 MW bulb turbines.17 Construction continued on the 11.2 GW Belo Monte project, which is expected to be Brazil’s second largest after the 14 GW Itaipu plant.18 The Itaipu plant set another output record in 2012, matching Three Gorges at more than 98 TWh.
Vietnam added at least 1.8 GW of new capacity in 2012 to raise its total capacity to 12.9 GW. A significant portion of this increase was attributable to Vietnam’s Son La plant. The final two 400 MW turbines were installed to complete the 2.4 GW project, reportedly the largest hydropower project in Southeast Asia.
In Russia, three 333 MW units at its Boguchanskaya hydropower plant were commissioned in late 2012 and one in early 2013, maintaining the country’s total operating capacity at 46 GW.21 Following a catastrophic accident in 2009, the 6.4 GW Sayano-Shushenskaya plant, the country’s largest hydropower facility, is under continuing repairs that will see 10 new turbines installed by 2014.22 In all, at least 3.4 GW of capacity was in-stalled during 2012, although net capacity additions were lower.
Elsewhere, Mexico brought its 750 MW La Yesca hydropower plant into full operation in late 2012 for a country total of 11.5 GW. The plant is said to have the world’s tallest concrete-faced earthfill dam of 220 metres. To the north, Canada commissioned the 200 MW Wuskwatim plant in Manitoba, and Hydro-Québec completed the 768 MW Eastmain 1-A powerhouse, to be followed by the neighbouring 150 MW Sarcelle powerhouse in 2013.
India added about 750 MW of hydropower capacity, of which 157 MW was categorised as small-scale (<25 MW), to end the year at about 43 GW.
In Africa, the Grand Renaissance Dam is well under way in Ethiopia, with commissioning of the first phase to start in late 2013. When completed, it is expected to deliver 6,000 MW and to be the largest hydropower facility on the continent.
To ensure that Ethiopia’s growing hydropower output can be exported to neighbours in the Horn of Africa, several transmission projects have been under way. In 2012, a transmission link was completed between Ethiopia and Sudan, allowing an initial export of 100 MW of hydropower to displace Sudanese thermal generation. In addition, the Ethiopia-Kenya Electricity Highway was approved for construction. The 2,000 MW link is expected to allow Ethiopia to export a portion of its large hydropower resources to the larger supply-constrained East Africa region.
Another region pursuing improved interconnection is Central America. The Central American Electrical Interconnection System, which was nearing completion in early 2013, stretches nearly 1,800 kilometres from Guatemala to Panama. This interconnection is expected to enable the region to harness more of its hydroelectric resources.
Hydropower projects in developing countries have historically benefitted from the Clean Development Mechanism (CDM) but may face challenges due to a significant decline in prices of carbon credits in 2012 and early 2013. Meanwhile, the United Nations moved to set up two regional centres in Africa, one in Togo and another in Uganda, to provide assistance in development of CDM projects.33 Currently, less than 1% of CDM pipeline projects in the hydropower sector are located in Africa, while the majority is in China.
Pumped storage hydro continues to grow in significance, largely due to its ability to provide ancillary services as shares of variable renewable generation rise. About 3 GW of pumped storage capacity was added in 2012, for a total of 138 GW globally.
Europe added 675 MW to push the regional total above 45 GW, and China accounted for just over half of the 2012 addition, bringing 1.5 GW of pumped storage online.36 China’s Fengning station in Hebei Province began construction in 2012; the 3.6 GW project could be the world’s largest pumped storage facility when completed.
The hydropower industry is seeing growing prominence of joint-venture business models in which local and international partnerships share risks and benefits. For example, a public-private partnership brought the 250 MW Bujagali project in Uganda to completion in 2012. The International Finance Corporation (IFC – World Bank Group) joined Korea Western Power Co. to develop at least one project in Laos.
In Vietnam, local and international parties, including Samsung of Korea, joined in a contract to build the Trung Son plant for a subsidiary of Electricity of Vietnam.
As the size of large projects increases, manufacturers are developing and testing ever-larger turbine-generator units, including 1,000 MW Francis units produced by Tianjin Alstom (China) and Power Machines (Russia).
Having delivered four record 812 MW Francis turbine generators to the Xiangjiaba plant, Alstom also committed to USD 130 million (EUR 100 million) investment in hydropower development needs within China, including the Global Technology Center in Tianjin. The interest of major international hydropower companies staking manufacturing and research ground in China is believed to reflect the significance and stable growth of the country’s hydropower development pipeline.
Companies are investing elsewhere as well. In early 2013, Alstom opened the new headquarters of its hydropower technology centre in Grenoble, France, following years of upgrades to the site and the doubling of its hydraulic test laboratory.
In Russia, Alstom (France) joined with RusHydro (Russia) to commence construction of a joint hydropower equipment manufacturing plant. After heavy investment in new manufacturing facilities in recent years, Voith Hydro (Germany) increased its emphasis on research and development, particularly for pumped storage technology.
IMPSA of Argentina, which holds a 30% market share in Latin America’s hydropower sector, opened a new factory that doubles its production capacity in order to meet the region’s sustained demand.47 In Japan, Toshiba announced the construction of a new thermal, hydro, and renewable power engineering centre in anticipation of growing demand for thermal and hydropower generation equipment in emerging economies.
Manufacturers are also striving to advance pumped storage technology, pursuing requisite flexibility and efficiency through development of variable-speed units and other innovations.
Electricité de France plans to upgrade its 485 MW La Cheylas plant to variable speed. The consortium behind the project estimates that European pumped storage facilities could provide another 10 GW of regulation capability if converted to variable-speed operation.
The world’s leading hydropower technology and manufacturing companies are Alstom, Andritz (Austria), IMPSA, and Voith, together representing more than 50% of the global market. Other major manufacturers include BHEL (India), Dongfang (China), Harbin (China), Power Machines, and Toshiba.
Hydropower dates back more than 2,000 years to when the Greeks used water wheels to grind grain. Over the centuries, it has played an important role in providing mechanical energy and, more recently electricity, supporting human and economic development.
Hydropower dams, which provide large-scale water storage, can provide protection from hydrological variability (including floods and droughts) and increase irrigation of agricultural lands, while potentially providing a means of transportation and recreation. Specific applications of hydropower offer significant potential for reducing carbon emissions in the near- and long term. Hydropower is used by electric grid operators to provide baseload power and to balance electricity supply and demand, and it plays an increasingly important role in supporting growing shares of variable renewable resources in power systems.
Notwithstanding these benefits, there is ongoing debate about hydropower’s sustainability. The environmental and social impacts of hydro projects include: potential impacts on hydrological regimes, sediment transport, water quality, biological diversity, and land-use change, as well as the resettlement of people and effects on downstream water users, public health, and cultural heritage. The gravity of the particular impacts varies from project to project, as does the scope for their avoidance or mitigation. Also, the opportunity to maximise positive impacts (beyond the renewable electricity generated) varies from site to site.
A number of technological developments offer the potential to improve hydropower’s environmental sustainability. These include certain locally effective fish passages; both large and small “fish-friendly” turbine technologies that reduce downstream passage mortality; models for optimising environmental flows; and design changes to minimise or avoid discharges of lubricating oil from turbine equipment (or the use of biodegradable oils). Project planning is beginning to incorporate greater understanding of dynamic climate and environmental impacts, in addition to traditional concerns such as revenue generation and flood control.
Some reservoir management plans incorporate upstream land-use management practices in recognition of associated sedimentation. Other practices include the identification of “no-go” project areas, and the protection of other areas (e.g., through “river offsets”) to compensate for project impacts such as biodiversity loss. In Norway, for example, the National Master Plan for hydropower sorts projects into acceptable/ not acceptable categories and protects a large number of the nation’s rivers. Prioritising existing water storage facilities, or new multipurpose facilities (driven by development, climate change mitigation, and water supply and irrigation concerns) for hydropower capacity expansion can offer a means of reducing associated impacts while broadening related benefits.
With regard to social impacts, model projects have shown increased recognition of the potential risks associated with hydropower and identification of opportunities to avoid them. Although interactions with project-affected communities typically focus on mitigation and compensation, some examples have shown a shift to benefit sharing, with efforts to optimise potential positive impacts through engagement with affected communities and collaborative initiatives to improve local living standards. In instances when a decision is made to move populations, some developers have begun to engage communities in planning for their resettlement. Approximately 10% of the USD 500 million Theun Hinboun Expansion Project in Laos was allocated to address resettlement and social issues after a long participatory process involving a variety of stakeholders, although the overall resulting impact on resettled communities remains a controversial subject.
Since the World Commission on Dams report was released in 2000, both the industry and international agencies have developed a number of standards, principles, and guidelines to optimise sustainability. These include the World Bank Safeguards, Equator Principles, and Hydropower Sustainability Assessment Protocol. The International Finance Corporation (IFC) Performance Standards and Equator Principles require developers to obtain Free, Prior, and Informed Consent (FPIC) for projects that affect indigenous peoples who are closely tied to their lands and natural resources through traditional ownership or customary use. The voluntary Hydropower Sustainability Assessment Protocol aims to guide sustainability in the hydropower sector by measuring a project’s performance throughout its life cycle, treating environmental and social issues at parity with other considerations.
Better compliance, further development, and wider adoption of these tools offer the potential to ensure that international practices are applied locally, irrespective of variations in national regulations, while providing common frameworks around which project stakeholders can engage e in dialogue about specific projects and their impacts.