Global average hydropower installed cost 2010-2022

Over the last decade, the average installation cost for hydropower across the globe presented an overall increasing tendency, despite some oscillation. In 2022, hydroelectricity systems had an average installation cost of 2,881 U.S. dollars per kilowatt installed. That same year, the global cumulative capacity of hydropower stood at around 1.4 terawatts.

Is the cost worth it?

The costs associated with the installation of hydroelectric systems depend on a wide range of factors – including size, output and quality of the system, connection to the grid, materials and labor costs, amongst others. For instance, small hydropower systems tend to present higher costs per kilowatt installed when compared to conventional hydro. Meanwhile, in contrast to other energy sources, hydropower offers lower levelized electricity costs. This is due to reduced expenses in fuel, operation and maintenance when compared to other technologies.

The market value of hydropower

The rising demand for electricity has become a major driving force behind the growth of the hydropower market worldwide. As the requirement for electricity is estimated to continue rising, governments are actively investing in hydroelectricity projects globally. Accordingly, the global market value of hydropower is projected to undergo continual growth over the next decade, surpassing 340 billion U.S. dollars by the year 2030.