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Electric Power, Energy Transition, Renewables
June 25, 2025
HIGHLIGHTS
India, China lead with strong pipeline
Australia facing rising costs, delays
Indonesia advancing land acquisition
Much of Asia is seeing strong additions of hydropower and pumped storage capacities, with India, China and Australia leading the way, as several countries race against time to meet emission targets amid persisting challenges, according to a report by International Hydropower Association published June 25.
The global hydropower pipeline includes about 600 GW of pumped storage hydropower (PSH) capacity in development and just over 475 GW of conventional projects, the IHA said in its 2025 World Hydropower Outlook report.
"The global deployment of conventional hydropower and PSH will remain broadly aligned in the near term, but beyond 2030, pumped storage is expected to lead in terms of new capacity," the report said, citing a strong pipeline of projects. "PSH currently exceeds conventional hydropower by 88 GW at the 'approved' stage and by 30 GW at the 'pending approval' stage, with 'announced' volumes broadly comparable."
India and China are at the forefront of these capacity additions, with India having about 132 hydropower projects at various stages of development, the report said.
As of early 2025, about 44.5 GW of pumped storage projects were at various stages of development in India and the country was looking to add 51 GW of PSH by 2032, the report said.
India's total installed capacity as of March 31 stood at 475.21 GW, with renewable energy sources accounting for 220.1 GW and large hydropower accounting for 47.7 GW, the data showed.
India has set itself a target of adding 500 GW of renewable energy by 2030 to meet emission targets and at least 80 GW of coal-based capacities to meet growing demand. While as much as 3.88 GW of thermal capacity was added during April 2024-March 2025, the biggest addition, 28.72 GW of capacity, came from renewable energy sources, including small hydro projects.
"China continues to dominate hydropower development in the East Asia and Pacific region, adding 14.4 GW of new installed capacity in 2024 to reach a total of 435.95 GW," the report said, adding that PSH accounted for about 7.75 GW of additions, bringing the total installed PSH capacity to 58.69 GW.
More than 105 GW of PSH is under construction globally, with over 90 GW in China alone, the report said.
With more than 200 GW of PSH under construction or approved, China is on track to exceed its 2030 target of 120 GW, potentially reaching 130 GW by the end of the decade, the report said.
While China has set itself a national target to commission 120 GW of pumped storage by 2030, twice the size of its current fleet, the country's system operators China State Grid and Southern State Grid have forecast a combined delivery of 129 GW within their operating areas.
Around 70 GW of China's under-construction capacity could be commissioned by 2030, the report said.
"Beyond 2030, the pace of development is likely to increase further. In China, 136 GW of approved PSH capacity is expected to come online by 2035," the report said.
While several countries across Southeast Asia, like Vietnam, the Philippines and Malaysia, are actively developing their pumped storage hydropower capacities, rising project costs in Australia are leading to delays in completion, the report said.
"Hydropower projects often face logistical and construction challenges due to remote, rugged locations, leading to higher costs and longer timelines in countries such as Australia, Vietnam and Indonesia," the report said.
"Delays are further compounded by complex permitting processes, unclear land rights, and lengthy environmental assessments, requiring innovative solutions and strong engagement with local communities and authorities."
Meanwhile, Indonesia is targeting an increase in renewable energy from 12% to 35% of the national energy mix, including an additional 16 GW of hydropower capacity by 2034. To achieve this, it is advancing its land acquisition and infrastructure readiness, with multiple projects scheduled to commence operations this year.
Around 105 GW of conventional hydropower is currently under construction across the globe that could be commissioned by the end of the decade, but another 69 GW, which has already been approved, is yet to begin construction and could only be delivered between 2030-2035, the report said.
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