Hydropower - India

The Hydropower Market in India is witnessing minimal growth, influenced by factors such as regulatory challenges, environmental concerns, and competition from other renewable sources, which hinder its expansion despite the country's commitment to sustainable energy development.

Customer preferences: Consumers in India are progressively prioritizing sustainable energy solutions, reflecting a growing awareness of environmental issues and climate change. This shift is evident as households increasingly seek eco-friendly energy options, including hydropower, despite its slow market growth. Additionally, urbanization and a younger demographic drive demand for cleaner energy sources, with consumers favoring local and renewable installations. Furthermore, cultural values around community well-being and resource conservation are influencing preferences, prompting a broader acceptance of hydropower as a viable energy alternative.

Trends in the market: In India, the Hydropower market is experiencing a gradual yet notable shift towards sustainable energy adoption, driven by consumer demand for eco-friendly solutions. This trend is bolstered by rapid urbanization and a youthful population increasingly prioritizing renewable energy sources. Stakeholders in the energy sector are recognizing the importance of community engagement and resource conservation, leading to enhanced acceptance of hydropower projects. As these developments unfold, industry players are likely to face pressures to innovate and align with consumer preferences, fostering collaboration with local communities and enhancing investment in hydropower infrastructure.

Local special circumstances: In India, the hydropower market is uniquely influenced by its diverse geography, with numerous rivers and mountainous regions ideal for hydroelectric projects. Cultural reverence for water resources often fosters community support for such initiatives. Regulatory frameworks, including the National Hydropower Policy, encourage investment while addressing environmental concerns. Additionally, local governance plays a crucial role in project approvals, ensuring alignment with community interests. These factors collectively shape market dynamics, driving growth and sustainability in India's renewable energy landscape.

Underlying macroeconomic factors: The growth of the hydropower market in India is significantly influenced by macroeconomic factors such as national infrastructure investments, energy demand projections, and climate policies. India's commitment to increasing its renewable energy capacity, driven by global climate agreements, fosters a favorable investment climate for hydropower projects. Additionally, robust economic growth and rising electricity consumption necessitate reliable energy sources, further propelling hydropower development. Fiscal policies that incentivize renewable energy projects, along with increasing public-private partnerships, enhance project viability. Furthermore, regional disparities in economic development impact hydropower project feasibility and community engagement, shaping overall market dynamics.

Data coverage:

The data encompasses B2B enterprises. Figures are based on the value of electricity production in the energy market.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as annual reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electricity generation due to the non-linear growth of this market, especially because of the direct impact of climate change on the market.

Additional notes:

The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.