- Global pumped storage capacity exceeded 200 GW for the first time in 2025 following a record 11.7 GW of new installations.
- Africa commissioned more than 4 GW of conventional hydropower capacity in 2025, reinforcing the continent’s growing role in renewable energy development.
- Global hydropower development now totals 1,127 GW, including 621 GW of pumped storage projects, as countries prioritise grid resilience and long duration energy storage.
Hydropower is emerging as a cornerstone of global energy security strategies as countries accelerate investment in flexible renewable generation and long duration energy storage, according to the 2026 World Hydropower Outlook released by the International Hydropower Association.
Global installed hydropower capacity reached 1,469 GW by the end of 2025 after 28 GW of new capacity was commissioned during the year. This included a record 11.7 GW of pumped storage, taking global pumped storage capacity beyond 200 GW for the first time and reinforcing its position as the world’s largest form of grid scale energy storage.
The report highlights a significant shift in the role of hydropower as electricity systems integrate growing volumes of wind and solar generation. While conventional hydropower continues to provide reliable low carbon electricity, pumped storage is increasingly being deployed to provide grid balancing, system flexibility and energy storage.
China remained the largest contributor to global hydropower growth in 2025, accounting for more than 40% of new capacity additions. The country now has more than 300 GW of hydropower under construction, including 218 GW of pumped storage.
Construction also began on the Yarlung Zangbo River Hydropower Project, which is expected to become the world’s largest hydropower facility and generate around three times more electricity than the Three Gorges Dam. China is also placing greater emphasis on integrating hydropower with wind and solar generation to improve grid reliability.
South and Central Asia continued to expand rapidly, supported by a development pipeline exceeding 300 GW. India is positioning itself as a global leader in pumped storage, with plans to increase installed capacity from approximately 5 GW to as much as 100 GW by 2035. Governments across the region are also strengthening regional cooperation on water management and cross border electricity trade.
Europe is also accelerating investment in pumped storage as electricity systems face increasing pressure from high levels of renewable generation. Countries including the Netherlands, Germany, Spain, Belgium, Sweden and France recorded more than 500 hours of negative electricity prices during 2025, highlighting the growing need for flexible generation and energy storage. New market reforms and permitting measures are being introduced to unlock investment in pumped storage projects.
Africa remained one of the strongest performing regions for new conventional hydropower capacity for the second consecutive year, commissioning more than 4 GW during 2025. Major projects including Ethiopia’s Grand Ethiopian Renaissance Dam and Tanzania’s Julius Nyerere Hydropower Project expanded electricity generation while strengthening regional power systems and improving energy access.
The report notes that expanding transmission infrastructure and cross border electricity trade will be essential to unlocking Africa’s significant untapped hydropower resources.
South America also recorded renewed momentum, supported by a regional development pipeline of around 70 GW. Countries are increasingly recognising hydropower as both a reliable source of baseload electricity and a flexible asset capable of balancing expanding wind and solar generation. Modernisation of ageing hydropower infrastructure is becoming a priority, with more than half of the region’s installed fleet now over 30 years old.
In North America, hydropower continues to underpin electricity supply while investment increasingly focuses on plant modernisation, extending operational life and developing pumped storage. Canada completed commissioning of the 1.1 GW Site C project in British Columbia during 2025, while the United States introduced permitting reforms to accelerate hydropower upgrades and electricity infrastructure. More than 60 GW of pumped storage projects are currently in development across the United States.
The report also identifies rapidly growing electricity demand from data centres and digital infrastructure as a major driver of hydropower investment. Technology companies including Google and Microsoft signed long term hydropower supply agreements during 2025 as demand increases for reliable carbon free electricity to support artificial intelligence and expanding digital infrastructure.
Despite strong global momentum, the report warns that financing constraints, permitting delays, transmission limitations, climate related hydrological variability and regulatory uncertainty continue to slow hydropower deployment in many markets.
Climate change is also reshaping project planning and operations, with severe droughts across parts of South America, South and Central Asia and Europe exposing vulnerabilities linked to water availability and ageing infrastructure. At the same time, governments are increasingly viewing hydropower as strategic infrastructure that can strengthen energy independence, support industrial development and reduce exposure to volatile fossil fuel markets.
Globally, hydropower generated 4,495 TWh of electricity in 2025. The global development pipeline now stands at 1,127 GW, including 621 GW of pumped storage projects, highlighting the sector’s growing role in delivering reliable renewable energy and supporting the transition to more resilient electricity systems.
Author: Bryan Groenendaal
