Advantages of hydropower. Hydropower technology is very mature. Compared to thermal power generation, it is not affected by factors such as greenhouse gas emissions and rising oil prices. Small hydropower plants are also widely accepted. In addition, hydropower has an efficiency of 85%, which is better than the 20% and 40% of renewable energy sources such as solar and wind power. Hydropower plants also have many other functions, such as flood control, navigation, agricultural irrigation, and leisure tourism.
Rising energy prices and climate change will make hydropower a winner. Due to factors such as climate change, increasing global energy consumption, and the gradual depletion of oil reserves, electricity prices are rising, and hydropower is expected to gain more attention. German economists predict that electricity prices in European countries will rise by an average of 4% annually until 2030. Furthermore, economic development will also drive up oil prices and increase public works spending, forcing countries to readjust their environmental and climate change policies, which will benefit the development of hydropower.
The Single European Electricity Market (SEEM) is gradually taking shape. Since the late 1990s, establishing a single electricity market has been a key EU policy. Major infrastructure development has been underway, including the expansion of interconnection points between national border power grids, the completion of the North See Ring wind farm, and the expansion of high-voltage transmission networks. This will alleviate electricity market barriers in remote areas such as Scandinavia and Southeast Europe. Furthermore, the continued rise in electricity prices will also facilitate the development of hydroelectric power plants in remote regions.
Although hydropower is a major renewable energy source globally and in Europe, approximately 40% of Europe's hydropower potential remains untapped.
The Alpine and Scandinavian countries represent the region in Europe with the greatest potential for hydropower investment. Hydropower has a long and rich history in these areas, and the integration of the electricity market and the development of large-scale power projects such as the offshore North Sea wind farm will further enhance the development prospects of hydropower plants in these regions.
Southeastern Europe utilizes only 40% of its hydropower potential. Another 60% of its economically viable hydropower potential awaits investment and development, particularly given that local electricity supply still relies heavily on large-scale centrally-run projects that have been operating for over half a century. Therefore, this region currently possesses a wealth of promising power engineering opportunities unparalleled in other parts of Europe.
–Source: Bureau of International Trade
