The hydropower energy market | Italy

1.1 Introduction

The hydropower market concerns the production of electricity generated through the use of water. This type of energy is one of the pillars of renewable energy worldwide, playing a key role in the energy transition to a low-carbon future.

A hydropower plant relies on a dam-like structure that creates a reservoir or reservoir. Water is conveyed through canals and tunnels to the hydro turbine, generating mechanical power that is converted into electricity by a rotating generator. Hydropower plants are divided into three types:[Enel]

• Flowing water power plant: This type of hydroelectric power plant directly uses the natural flow of a river or stream. The water is channeled to turbines, which generate electricity by the force of the water's flow. After driving the turbines, the water is fed back into the stream downstream of the plant. The main feature of this type of power plant is its direct dependence on water flow, without the need for storage.
• Reservoir power plant: These hydropower plants use water stored in a reservoir, which can be natural or artificial (created by a dam). The water flows in the fall to drive turbines and then is fed back into the river. One of the distinguishing features of this type of power plant is the ability to control electricity generation and water availability in terms of both flow and quantity.
• Storage power plant: This type of hydroelectric power plant, also known as a pumped storage power plant, uses two reservoirs located at different elevations, one upstream and one downstream. This allows a dual regime: during periods of lower energy demand, water, after driving the turbines, can be pumped back into the upstream reservoir, using the turbines as an electrical pumping system. In this way, the downstream reservoir acts as an energy reserve. When energy demand is high, the water can be released to drive the turbines again.

Worldwide, hydropower generation increased by nearly 70 TW h (nearly 2 percent) in 2022, reaching 4,300 TWh. Hydropower remains the largest renewable source of electricity, generating more than all other renewable technologies combined. Over the past five years, the average growth rate has been less than one-third of what was required, signaling the need for significantly stronger efforts, especially to simplify permitting and ensure project sustainability.[IEA]

The size of the global hydropower market was estimated at $236.4 billion in 2021 and is expected to exceed $371.8 billion by the end of 2030, registering a compound annual growth rate (CAGR) of 5.16 % during the 2022-2030 forecast period.[Precedenceresearch]

This study focuses exclusively on the hydropower market. For information on related markets, such as solar power or wind power, please refer to the specific studies available in the Businesscoot catalog.