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.