Hydro Energy Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Hydro Energy in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Hydro Energy Trend for the Second Half of 2022

The growth of the hydropower sector is crucial for meeting the net zero emissions target. The year 2021 witnessed the addition of many more hydro energy facilities, especially by China, but the pace fell slow in 2022 as the covid 19 reemerged and outdoor activities had to shut down completely. Still, Asia performed a lot better than America and Europe in terms of hydro energy installation.

European people faced the mightiest power bills in H2 2022. Since, the start of the Russia-Ukraine conflict, gas prices have risen sharply. The conventional gas-fired power plants led to a tremendous rise in electricity bills causing the producers to shift to other renewable forms.

Most EU countries like Austria had to rely on imports because hydroelectricity plants were producing less electricity than usual due to rivers drying up. The same cases were seen across many countries, thereby driving the prices of hydroelectricity/ hydro energy to an inclined trajectory during the concerned period.

Analyst Insight

According to Procurement Resource, the trend for hydro energy are expected to remain high in the coming quarter. Considering the growing demand for renewable sources amid unstable gas and oil prices are forcing many producers to entirely change from conventional gas-fired plants.

Hydro Energy Trend for the First Half of 2022

According to the International Hydropower Association, over the last 5 years, the world’s hydropower growth has averaged 22 gigawatts. This year saw a surge in the hydropower output in China due to record-breaking rainfall. The international coal prices raised the energy bills globally; however, the reduced demand from the industrial powerhouse China kept a lid on the crude oil and coal prices.

China received record rainfall during the first half of the said year, lifting the hydro energy generated by 18% Y-O-Y basis while the thermal production dropped by 4%. Hence, the trend of hydro energy remained afloat throughout the Chinese domestic market as the current economic and political conditions are causing the manufacturers to pivot to renewable energy sources rather than conventional coal.

Procurement Resource provides latest trend of Hydro Energy. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.