Study identifies need for investment in Asian hydropower modernisation - International Hydropower Association (IHA)
Published December 22, 2025
Investment in Hydropower Modernisation Vital for Asia, Study Reveals
A recent study conducted by the International Hydropower Association (IHA) has highlighted the urgent need for significant investment in the modernisation of hydropower facilities across Asia. The report emphasizes that many existing hydropower plants in the region are aging and require upgrades to enhance their efficiency, reliability, and contribution to sustainable energy goals.
The study points out that hydropower plays a crucial role in the energy mix of many Asian countries, providing a substantial portion of electricity generation. However, a significant number of these facilities were built several decades ago and are now facing challenges related to outdated technology and infrastructure. The report stresses that without timely investments in modernisation, the potential of hydropower to support the transition to renewable energy could be severely compromised.
Current State of Hydropower in Asia
As of 2023, Asia is home to some of the largest hydropower installations in the world. The region accounts for approximately 40% of the global hydropower capacity, with key players including China, India, and several Southeast Asian nations. In total, Asia boasts over 1,000 gigawatts (GW) of installed hydropower capacity, making it a cornerstone of renewable energy generation.
Despite its significant contribution, the study indicates that a considerable portion of Asia's hydropower infrastructure is nearing the end of its operational lifespan. Many plants were constructed in the mid-20th century, and their technology is increasingly unable to meet modern efficiency and environmental standards. The IHA report calls for a comprehensive assessment of existing facilities to identify those that require immediate attention and investment.
The Need for Modernisation
The need for modernisation is underscored by several factors. First, aging infrastructure often leads to decreased efficiency and increased operational costs. The IHA study notes that many older plants operate at significantly lower efficiency levels compared to newer installations, which can harness water flow more effectively and generate more power.
Second, modernisation can enhance the environmental performance of hydropower facilities. Upgrading technology can help mitigate ecological impacts, such as fish mortality and habitat disruption, which have been associated with older hydropower systems. The integration of fish-friendly turbine designs and improved water management practices are among the advancements that can be implemented through modernisation efforts.
Additionally, as countries strive to meet their climate targets and transition to low-carbon energy sources, the role of hydropower as a flexible and reliable energy provider becomes more critical. The IHA report highlights that modernised hydropower plants can provide essential grid stability, support the integration of variable renewable energy sources like wind and solar, and contribute to energy security.
Investment Opportunities
The study suggests that substantial investment is required to modernise Asia's hydropower facilities. It estimates that approximately $20 billion annually will be needed over the next decade to upgrade existing plants and build new ones that incorporate advanced technologies. This investment will not only improve the performance of hydropower but also create jobs and stimulate economic growth in the region.
Governments and private investors are encouraged to collaborate in developing financing mechanisms to support these modernisation efforts. Innovative funding solutions, such as green bonds and public-private partnerships, can play a pivotal role in mobilising the necessary capital. The IHA report stresses the importance of creating an enabling environment for investment, including clear regulatory frameworks and incentives for modernisation projects.
Case Studies of Successful Modernisation
The report also highlights several successful modernisation projects in Asia that can serve as models for future initiatives. For instance, the rehabilitation of the Xiluodu Hydropower Station in China involved significant upgrades to its turbine technology and control systems, resulting in a marked increase in energy output and efficiency. Similar projects in India and Vietnam have demonstrated that modernisation can lead to substantial improvements in both generation capacity and environmental performance.
These case studies illustrate that with the right investment and commitment, hydropower facilities can be revitalised to meet contemporary energy demands and sustainability goals. The IHA emphasizes the importance of knowledge sharing and collaboration among countries to replicate these successes across the region.
Conclusion
The findings of the IHA study serve as a clarion call for urgent action to modernise hydropower infrastructure in Asia. As the region continues to rely heavily on hydropower for its energy needs, addressing the challenges posed by aging facilities is paramount. The potential benefits of investment in modernisation extend beyond improved energy generation; they encompass environmental sustainability, economic growth, and enhanced energy security.
With the right strategies and investments in place, Asia's hydropower sector can evolve to meet the challenges of the future, ensuring that this vital resource remains a cornerstone of the region's energy landscape. The time for action is now, and the opportunity for transformation is within reach.