Small Hydropower Market Size, Analysis, Share, Growth Forecast, 2025 – 2034

Small Hydropower Market Size

The global small hydropower market was anticipated at 350.6 GW in 2024 and is expected to witness a CAGR of over 2.1% from 2025 to 2034. The small hydropower (SHP) market is experiencing significant growth, driven by increasing demand for renewable energy, environmental sustainability goals, and technological advancements. Small hydropower refers to hydroelectric power plants with a capacity typically ranging from 100 kW to 10 MW, making them more accessible and feasible for remote areas, communities, and smaller utilities.
 

Small hydropower is increasingly becoming a key player in the global shift towards decentralized energy systems. These systems prioritize local, off-grid, and microgrid solutions, making them especially valuable in rural and isolated regions. According to the U.S. Department of Energy, small hydropower projects can generate up to 10 megawatts of electricity, providing a reliable and renewable energy source for local communities. Recent advancements in turbine technology, particularly the creation of more efficient and cost-effective turbines, are significantly boosting the performance of small hydropower systems.

Small Hydropower Market Trends

Small hydropower plays a vital role in microgrid and stand-alone power systems, especially in regions with difficult terrain or limited access to large-scale power grids. With the growth of microgrid technologies, small hydropower is being increasingly integrated as a renewable energy source to provide reliable and consistent power to local communities. There is a growing trend of integrating small hydropower with other renewable energy sources like solar and wind to create hybrid power systems. Hybrid systems allow for a more reliable and consistent energy supply, especially in regions where intermittent renewable sources like solar or wind are dominant.
 

Small Hydropower Market Analysis

U.S. small hydropower industry is projected to exceed 46.2 GW by 2034. The federal government is committing to reducing greenhouse gas emissions and increasing their share of renewable energy in the energy mix. These policies are directly driving the adoption of small hydropower, as it provides a clean and reliable energy source. Incentives, tax credits, and grants for small hydropower installations are also common in many regions, further encouraging growth.
 

Small hydropower offers a practical solution to provide electricity to remote and off-grid communities. Many rural and isolated areas around across the Asia Pacific region still lack reliable access to the grid, and small hydropower offers a localized, cost-effective solution. Therefore, for isolated communities in the Asia Pacific region with suitable water resources, small hydropower can be a vital source of power. These systems reduce dependence on fossil fuels, improve energy security, and help local communities become more self-sufficient, which is increasingly seen as a critical benefit.
 

Small Hydropower Market Share

Andritz Hydro has emerged as a prominent player in the small hydropower industry. A larger market share often enables companies to access economies of scale, invest in technology, and develop a stronger brand presence. It also allows for better relationships with suppliers, partners, and customers, ensuring long-term growth. Moreover, companies with significant market share can help shape industry standards, navigate regulations, and lead in innovation.
 

Small Hydropower Market Companies

Some of the major key players operating across the small hydropower industry are:

• 24H - Hydro Power
• Agder Energy
• Andritz Hydro
• Derwent Hydroelectric Power
• Fortum
• General Electric
• Lanco Group
• RusHydro
• Siemens
• Statkraft
• Voith
   

Small Hydropower Industry News:

• In August 2024, the Indian Ministry of New & Renewable Energy has developed guidelines with IIT Roorkee to support SHP development, while the Central Electricity Authority reassessed larger projects over 25MW from 2017-2023, revealing a hydro potential of 133GW. The ministry is focused on advancing Small Hydro Power (SHP) projects with capacities up to 25MW, aiming to tap into the country's hydroelectric potential. Thereby, accelerating the small hydropower across the region.
   

This small hydropower market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume in GW from 2021 to 2034

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
• Rest of World
  • Brazil
  • Iran