The Baihetan hydropower plant is seen in operation on the border between Qiaojia county of Yunnan province and Ningnan county of Sichuan province, China June 28, 2021.
In 2024, China increased its pumped hydro capacity by 7.75 GW, reaching a total of 58.69 GW. The country has over 200 GW of pumped hydro projects under construction, accounting for one-third of such global developments. This supports China’s efforts to enhance energy storage, ensuring grid stability amid fluctuating wind and solar power generation.
China achieved its 2030 wind and solar installation targets in 2024, six years ahead of schedule. By adjusting electricity prices to reduce peak demand, the government has enabled pumped hydro operators to profit by selling stored energy at higher rates.
Globally, hydropower capacity grew by 24.6 GW in 2024, including 16.2 GW of conventional hydropower and 8.4 GW of pumped hydro, with 475 GW of conventional projects in development. “This year’s world hydropower outlook shows that global new capacity is accelerating after several years of stagnation,” the IHA stated.
Outside China, East Asia and Pacific hydropower projects face obstacles like financing shortages, high costs, and lengthy payback periods, limiting private investment. “Regulatory and permitting delays are also hampering progress in countries such as Australia, Indonesia, and Vietnam, where complex approval processes, land rights issues, and environmental assessments create uncertainty,” the IHA noted.
