China Leading in Small Hydro Power (SHP) Installations in APAC


Published Date : Dec 30, 2015

The global small hydropower market is projected to witness steady growth in the coming few years. This is driven by the rising demand for energy around the world. Furthermore, hydropower is a clean source of energy as compared to conventional fossil fuel generated power. Hydropower stations once built can generate power for decades. The various advantages associated with hydropower will continue to support the growth of the global small hydropower market. The installed capacity of the global small hydropower market is projected to be nearly 150 GW by the end of 2023.

Region-wise, the global small hydropower market is divided into Asia Pacific, Europe, South and Central America, the Middle East and Africa, and North America. In 2014, Asia Pacific stood out as the largest market for small hydropower and held a share of around 70%. Furthermore, China led the small hydropower market in terms of SHP installations, trailed by India and Japan.

The China small hydropower market is projected to witness strong growth in the coming few years. One of the key drivers of this regional small hydropower market is the favorable polices implemented by the government in the country. The government in China offers tax credits and many other supportive policies to ensure the growth of the small hydropower market. Furthermore, in several provinces of China, many small hydropower stations are being built. During the 12th Five-Year Plan of China, the growth of small hydropower sector was one of the key development factors considered.

The growth of the small hydropower market in China has been so tremendous in the past decades, that this model has been used by the United Nations to support the growth of small hydropower markets in developing regions. Nevertheless, the China small hydropower market is facing two key issues that are challenging its growth.

Environmental impact of these small hydropower stations is one of the key concerns that the government in China is focusing on. To reduce the impact of soil erosion caused by construction of hydropower stations, the country is stressing on scientific management. Another issue is efficiency, again to address this issue the country is relying on planning and innovation.