AS the world strives to meet net-zero emissions goals amid geopolitical and supply chain disruptions that threaten energy imports, emerging markets are turning to hydropower investment and storage to facilitate their energy transitions.
In the latest sign of commitment to the world’s largest low-cost, low-carbon electricity source, India pledged US$2.4 billion in August 2022 to develop the West Seti and Seti River Hydropower Projects in Nepal, which have a combined capacity of 1.2GW. Two Chinese companies had signed memoranda of understanding to finance the projects but pulled out of these commitments in 2018.
According to the International Energy Agency (IEA), emerging economies have only tapped 40 per cent of their potential to generate hydropower.
By harnessing new technologies and smaller-scale projects, emerging markets are generating new momentum for hydropower to reduce imports of coal or natural gas and supply more power domestically or regionally through cross-border trade.