News Industry

Hydropower, a Clean Energy Giant, Is Sidelined, IEA Chief Says

Hydropower, a Clean Energy Giant, Is Sidelined, IEA Chief Says
Wednesday, 29 October 2025 07:56

Amid the shift toward clean energy, the head of the International Energy Agency believes that the strategic hydropower sector is still being marginalized.

Fatih Birol, Executive Director of the International Energy Agency (IEA), has reopened the discussion on hydropower's role in the global energy transition, arguing that it is frequently sidelined despite being the world's third-largest source of electricity after coal and natural gas.

In 2024, hydroelectric plants generated approximately 4,500 terawatt hours (TWh), or 14% of global electricity, matching the combined output of solar and wind power. Birol calls hydropower an essential pillar of energy security and grid flexibility, noting that its quickly adjustable output can facilitate the integration of intermittent energy sources and serve as the main method for large-scale electricity storage.

This perspective is particularly relevant for the African continent. According to the "2025 World Hydropower Outlook" published by the International Hydropower Association (IHA) in late June, only 10% of Africa's hydropower potential is currently utilized. Yet, this already accounts for nearly 20% of the continent's electricity generation, with an installed capacity of 43.5 gigawatts (GW).

New projects are emerging across several countries. In 2024, Tanzania commissioned six of the nine turbines at the Julius Nyerere Dam, while Uganda and Cameroon completed major construction projects. Ethiopia followed suit in 2025 with the inauguration of the Grand Ethiopian Renaissance Dam (GERD).

However, structural constraints are slowing momentum. More than 18.5 GW of approved projects have not yet reached a final investment decision, and 16 GW are under construction.

Recurring obstacles include the risk of power non-sale, the high cost of currency hedging, and lenders' caution regarding the non-bankability of projects. Without targeted reforms, the IHA warns that these constraints could continue to delay the deployment of Africa's hydropower potential.

The continent possesses considerable assets, such as the Democratic Republic of Congo, whose potential is estimated at about 100 GW. Less than 3% of this potential is utilized, falling below the continental average. This underlines the necessity, as advocated by Birol, to place this clean energy source at the center of energy discussions and strategies to achieve universal, sustainable, and reliable access to electricity, especially in Africa, in the near future.

Abdoullah Diop 

On the same topic
Seaturns launches 2 MW wave energy pilot in Mauritius Project tests grid-connected technology with potential expansion to 10 MW Initiative reflects...
Rules set technical requirements and ensure fair competition in market Reform targets safer infrastructure and consumer protection in construction...
U.S. firm signs tracker supply deal for 258 MW solar project Project includes battery storage and feeds into national grid Move strengthens...
NOC begins first phase of pipeline linking Farigh field to Brega Project aims to secure gas for power generation and industry Move comes as...
Most Read
01

Togo parliament adopts WAEMU law against currency counterfeiting Bill defines offences including ...

Togo Passes Law to Criminalize Counterfeiting of West African CFA Franc
02

Since its 2019 IPO, Airtel Africa paid Deloitte over $37 million in audit and non-audit fees,...

Airtel Africa and Deloitte: A Seven-Year Relationship, $37 Million in Fees and a Planned Handover
03

CCR-UEMOA presents mid-term review of private sector competitiveness efforts Reforms, AfCFTA trai...

Strengthening the Business Climate in WAEMU Countries: CCR-UEMOA Reviews Its Midterm Record
04

World Bank announces $137 million to boost West Africa digital economy Program expands broad...

Benin, Liberia and Sierra Leone Receive $137M to Expand Digital Access for 5.2 Million People
05

ECOWAS is proposing a regional digital platform for passengers to file and track complaints online...

ECOWAS Considers Regional Platform to Enforce Air Passenger Compensation
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.