China, India lead Asia's biggest hydropower crunch in decades - Reuters

China, India lead Asia's biggest hydropower crunch in decades - Reuters

Published February 06, 2026

China and India Face Significant Hydropower Challenges in Decades

China and India, two of Asia's largest nations, are currently experiencing their most severe hydropower constraints in decades. This situation arises from a combination of prolonged drought conditions and the increasing demand for electricity. The impact of these challenges is being felt across the region, with implications for energy security, economic growth, and environmental sustainability.

According to recent data, hydropower generation in China has dropped significantly. In the first half of 2023, hydropower output fell by 16% compared to the same period in the previous year. This decline is attributed to low water levels in major rivers, notably the Yangtze River, which has been affected by a lack of rainfall and high temperatures. The reduced hydropower generation is particularly concerning given that hydropower accounts for approximately 18% of China's total electricity generation.

India is facing similar challenges, with hydropower generation also experiencing a notable decline. The country has seen a decrease of around 10% in hydropower output this year. This drop comes at a time when India is striving to meet its growing energy demands, driven by rapid urbanization and industrialization. Hydropower has historically been a crucial component of India's energy mix, contributing to about 12% of the total electricity supply.

Impact on Energy Supply and Prices

The reduction in hydropower generation in both countries has led to increased reliance on alternative energy sources, particularly coal and natural gas. In China, coal-fired power generation has surged to compensate for the shortfall in hydropower. This shift raises concerns about carbon emissions, as coal remains one of the most carbon-intensive energy sources. Reports indicate that coal-fired generation increased by approximately 20% in the first half of 2023.

In India, the government has also turned to coal to fill the gap left by declining hydropower production. The country has ramped up coal production and imports to ensure a stable electricity supply. However, this reliance on coal has sparked discussions about the long-term sustainability of India's energy strategy, particularly in light of its commitments to reduce greenhouse gas emissions as part of the Paris Agreement.

Drought Conditions and Climate Change

The ongoing drought conditions have been exacerbated by climate change, which is altering precipitation patterns across the region. Climate scientists have warned that such extreme weather events are likely to become more frequent due to global warming. In addition to the immediate impact on hydropower generation, these changes pose long-term risks to water availability and food security in both countries.

The drought has also affected agricultural productivity, which is heavily dependent on consistent water supplies. In China, crop yields have been impacted, leading to concerns about food security and potential price increases for staple commodities. Similarly, in India, farmers are facing challenges due to reduced irrigation water availability, which could threaten the livelihoods of millions.

Government Responses and Future Strategies

In response to the hydropower crunch, both governments are exploring various strategies to mitigate the impact of reduced water availability. China has announced plans to invest in water conservation projects and improve the management of its water resources. The government is also looking to enhance the resilience of its energy infrastructure to withstand the effects of climate change.

India's government is focusing on diversifying its energy mix to reduce dependence on hydropower. This includes increasing investments in solar and wind energy, which have seen significant growth in recent years. The country aims to achieve 175 gigawatts of renewable energy capacity by 2022, with plans to further expand this target in the coming years.

Regional Cooperation and Sustainable Development

The challenges faced by China and India highlight the need for regional cooperation in managing water resources and energy supply. Collaborative efforts could lead to more sustainable practices and better adaptation strategies in the face of climate change. Initiatives that promote shared water management and energy trading could provide mutual benefits for both nations.

Furthermore, as Asia continues to develop, there is an urgent need to balance economic growth with environmental sustainability. Policymakers must prioritize investments in renewable energy technologies and sustainable water management practices to ensure a stable and secure energy future for the region.

Conclusion

The current hydropower challenges in China and India serve as a stark reminder of the vulnerabilities associated with climate change and the importance of diversifying energy sources. As both countries navigate these difficulties, their strategies will have significant implications for energy policy, economic stability, and environmental protection in Asia.

In summary, the hydropower crunch experienced by China and India is a multifaceted issue that requires immediate attention and long-term planning. Both nations must work together and with other regional partners to develop comprehensive solutions that address the interconnected challenges of energy supply, water management, and climate resilience.

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