A small hydroelectric power station, abbreviated as small hydropower, refers to a hydroelectric power station that uses smaller-capacity motors to generate electricity. In China, small hydropower stations usually refer to hydropower stations with an installed capacity of less than 25000 kilowatts. This type of power station is generally connected to a large power grid or only provides electricity supply to a certain area or even a single household user.

Small hydropower has advantages such as dispersed construction areas, full and reasonable utilization of water resources, low investment requirements, low implementation difficulty, and minimal environmental impact. With the continuous growth of global energy demand and increasing attention to renewable energy, the position of small hydropower in the global energy market is becoming increasingly prominent, and their market development prospects are promising.

Market Development Overview Analysis

Market development status: Currently, the global small hydropower market is in a steady growth stage. With the advancement of technology and the reduction of costs, more and more regions are adopting small hydroelectric power plants to meet their energy needs. At the same time, the government's policy support and investment in renewable energy are also driving the development of the market. According to our research data, the global market size of small hydropower reached $14.57 billion in 2023, an increase of 3.70% compared to 2022.

Market driving factors: The main driving factors for market growth include the growth of global energy demand, increased demand for renewable energy, technological progress and cost reduction, policy support, etc. These factors have jointly driven the rapid development of the small hydropower market.

Market Challenge: Although the market outlook is promising, the small hydropower market also faces some challenges. This includes environmental impact assessment, water resource allocation issues, power grid access issues, and market competition.

 

Source: www.globalmarketmonitor.com

Segmented Market Analysis

According to the difference in installed capacity, small hydropower can be further divided into three levels: small, mini, and micro. Among them, small hydropower (with installed capacity between 1 MW and 10 MW) hold the largest market share, accounting for 43.51% in 2023.

From the perspective of downstream applications, small hydropower is mainly used in rural power generation, farms, and pastures. Among them, the village power generation sector is the largest downstream application market, with an application share of 54.89% in 2023.

Regional Distribution Analysis

From a regional perspective, the global small hydropower market is mainly concentrated in North America, Europe, and the Asia Pacific region. Among them, the Asia Pacific region is the largest revenue market. Data shows that in 2023, the market revenue of small hydropower in the Asia Pacific region was 6.03 billion, with a market share of 41.40%; Europe and North America were the second and third largest revenue markets respectively, with market revenue shares of 27.04% and 21.59% in 2023.

Global Small Hydro Power Market Revenue and Share by Region in 2023