Global hydro generation hits 5-year low amid rainfall shortages

Global hydroelectric generation reached a five-year low in 2023 due to below-average rainfall affecting major regions like China, North America, and India, leading to increased reliance on fossil fuel power generation and higher emissions, as per the UK Energy Institute’s Statistical Review of World Energy.

Hydro generation totaled 4,240 billion kWh in 2023, down from a record 4,359 billion kWh in 2020, marking the largest slump in recent years. China saw the most significant decline, accounting for 80 per cent of the global reduction, due to prolonged drought impacting river systems despite new hydro infrastructure.

However, prospects for 2024 are optimistic with anticipated higher rainfall and snowmelt boosting hydro output alongside rapid expansion of wind and solar power. China and Brazil are already experiencing significant increases in hydro generation, hinting at a potential turnaround in global fossil fuel use and emissions, albeit temporary.

Attribution: Bloomberg.