1. What is Smart Micro Hydro Power Systems?
A smart micro hydropower system is small-scale hydropower generation machinery, which has advanced technologies and intelligent control systems, that help in optimizing the efficiency, reliability, and overall performance of the hydropower generation process.
2. Understanding Smart Micro Hydropower Systems in b2b landscape
In the realm of business-to-business (B2B) interactions, understanding the dynamics of the Smart Micro Hydropower Systems is crucial. Micro hydropower has witnessed new technological advancements in recent years, mainly pertaining to the engineering and technology. One of the major engineering advancements has been the advent of flexibility technology, with the growing adoption of adjustable diaphragms and stabilizer fins.
Advancements in energy storage solutions are also being incorporated into smart micro hydropower systems. Specifically, the advancement in lithium-ion battery technology has been instrumental in increasing the adoption of hybrid energy storage solutions for excess hydropower. Given the long lead times in developing new lithium supplies, scientists are also researching lithium free energy storage systems. For instance, in December 2023, Fourth Power, a U.S.-based startup, focused on energy storage systems for hydropower, announced that it had raised US$ 19 million in funding for developing a long duration energy storage solution with molten tin chemistry.
Another emerging micro hydropower technology is the increased adoption of digitization to increase operational efficiency. Research suggests that a total of 42 TWh of cumulative hydropower could be added to present capacity by implementing digitization. Furthermore, it could also lead to an annual savings of US$ 5 billion in overall costs. New technological advancements will greatly influence the future growth trajectory of the global smart micro hydropower market.
Let us have a look at what the Smart Micro Hydropower Systems Market will be.
Table of Contents
- Introduction: Smart Micro Hydropower Systems Impact on Business
- Understanding Smart Micro Hydropower Systems in b2b landscape
- Opportunities and Challenges in Smart Micro Hydropower Systems
- Smart Micro Hydropower Systems Applications Across Industries
- Smart Micro Hydropower Systems Regional Landscape
- Smart Micro Hydropower Systems Competitive Landscape
- Conclusion: Embracing Smart Micro Hydropower Systems for Competitive Advantage
3. Opportunities and Challenges in Smart Micro Hydropower Systems
3.1 Opportunity: Collaborative partnerships with higher educational institutions
Although smart micro hydropower is making rapid progress, the industry still requires a large amount of research and development to reach maturation.
Industry experts have repeatedly warned about a significant shortage of talent and skills that would impact high-value R&D work, thus delaying the commercialization of smart technologies for micro hydropower.
Increasing collaborative partnerships between research laboratories, tech startups and scientific higher educational institutions will lead to the creation of an industry-ready skilled workforce, thus alleviating the personnel shortage and improving future market growth prospects.
3.2 Challenge: Complex Regulatory Process
Given the fact that hydropower leaves an outsized impact on the local environment, it is subject to much closer scrutiny than other renewable energy projects. Most developing and developed countries have a stringent set of regulations that must be complied with for receiving the required licenses and agreements for constructing a hydropower project. For instance, in 2023, the U.S. supreme court ruled that all water bodies within the territory of U.S. including lakes, rivers, ponds, glaciers, marshes and wetlands together constitute waters of the United States (WOTUS). WOTUS are entitled to a different and more stringent set of regulations. Along with other environmental regulations such as the Clean Water Act and the National Environmental Policy Act (NEPA), securing the requisite permissions for constructing hydropower projects has become more difficult in U.S.
A similar dynamic plays out in emerging countries. Many locals are fearful of displacement and loss of livelihood due to the hydroelectric power plants, therefore, many regulations are put in place to practically discourage their construction. Furthermore, overcome various regulatory hurdles requires the usage of significant capital, hence most of the projects are undertaken mainly by major energy conglomerates, thus crowding out small and medium sized market players. Complex regulatory processes continue to hamper the development of the global smart micro hydropower market.
4. Smart Micro Hydropower Systems Applications Across Industries
The residential sector holds a significant share of the global smart micro hydropower systems market. Market trends suggest a rising preference for residential smart micro hydropower systems, fueled by the increasing demand for sustainable and decentralized energy solutions among homeowners worldwide. Government policies and incentives are playing a significant role in shaping the residential smart micro hydropower systems market.
The commercial segment is poised to dominate a significant share of the global smart micro hydropower systems market owing to several key factors that collectively contribute to its growth trajectory. This segment encompasses diverse industries with varying energy requirements, ranging from manufacturing and agriculture to hospitality and healthcare. Smart micro hydropower systems offer scalability and flexibility to cater to the unique energy needs of different commercial applications. As demand for renewable energy solutions continues to rise in the commercial sector, suppliers and service providers have the opportunity to capitalize on this growing market by offering innovative products, solutions, and services tailored to the specific needs of commercial customers.
The industrial sector is poised to capture a substantial portion of the global smart micro hydropower systems market, driven by several key factors that shape the market landscape. With industries increasingly focused on reducing their carbon footprint and operating costs, smart micro hydropower systems offer an attractive solution due to their renewable nature and potential for cost savings. With industries increasingly focused on reducing their carbon footprint and operating costs, smart micro hydropower systems offer an attractive solution due to their renewable nature and potential for cost savings.
Industries often have high energy demands for various processes, making them ideal candidates for on-site energy generation solutions like smart micro hydropower systems. By generating electricity locally, industries can reduce their dependence on the grid and mitigate the risks associated with grid instability or outages, thereby enhancing operational reliability.
Want to Know about Top 10 Companies of Smart Micro Hydropower Systems Principles Get Started Now!
5. Smart Micro Hydropower Systems Regional Landscape
North America smart micro hydropower systems market is projected to reach US$ 720 million by 2031. Technology continues to be improving, enabling smart micro hydropower systems more dependable, economical and efficient. As a result, more money has been invested since investors now have more assurance in the projects' profitability and viability. As part of President Joe Biden's Investing in America initiative, the US Department of Energy (DOE) will offer over US$ 38 million in incentive payments for 66 hydroelectric facilities countrywide. The Bipartisan Infrastructure Law provides funding for these incentives, which are offered for electricity generated and sold from dams and other water infrastructure that increase or expand hydroelectric power-generating capabilities. Facilities situated in communities with inadequate electric service are taken into account.
North American governments, both federal and state/provincial, have set higher objectives and goals for renewable energy to cut down the carbon emissions and address climate change. As a result, the investment in a range of renewable energy technologies, such as tiny hydropower systems have increased. For instance, on December 9, 2022, to advance hydropower and marine energy research and development, the U.S. Department of Energy's Water Power Technologies Office (WPTO) announced the awarding of nearly US$ 16 million in new projects. These grants cover initiatives including hydropower (US$ 5.6 million) and marine energy (US$ 0.5 million) among six national laboratories.
South America smart micro hydropower systems market is projected to reach US$ 47 million by 2031. The development and implementation of smart micro hydropower systems have benefited greatly from the increased interest of both domestic and international investors in South American renewable energy projects, particularly in Brazil and Argentina. According to Paulo Arbex, the chairman of Associacao Brasileira de Fomento as Pequenas Centrais Hidreletricas, Brazil's small hydroelectric power segment has the potential to develop 30% over the next three years, reaching 8.13 GW. This information was provided to BNamericas. The increase would require an expenditure of more than BRL15 billion (US$ 2.73 billion) or 1.88 GW of new plants. Eletrobras' privatization, requiring the compelled contracting of around 2 GW of small hydro plants in controlled auctions by the end of 2026, is anticipated to contribute a significant contribution.
To sustainably meet the nation's energy needs, there is an increasing demand for renewable energy sources as Brazil increases its power-producing capacity. Since smart micro hydropower systems can capture the energy from flowing water without releasing greenhouse gases or using limited fuel supplies, they present an appealing alternative. In January 2022, according to government officials, within the next ten years, Brazil's installed power generation capacity is predicted to increase by 37% to 275 gigawatts (GW), with an increase in wind and solar power likely to offset hydropower. With 200 GW of installed capacity, the South American nation mostly relies on hydropower, which, according to state-run energy research group EPE, will account for less than half of the total capacity by 2031.
Europe smart micro hydropower systems market is projected to reach US$ 892 million by 2031. The need to increase energy security and diversify energy sources is highlighted by the impending gas supply crisis in Europe. Energy specialists in the region were working diligently to discover an escape out of Europe's impending gas shortage when a relatively simple upgrade to a hydropower plant in France indicated that current renewable energy resources might offer a substitute for gas-fired power plants for some energy services. During a critical period for energy policy, this discovery may contribute to a decrease in the dependency on imported fossil fuels. Thus, hydropower plant's smart upgrade gives energy security an unpredictable boost.
For instance, micro hydropower solution is an innovative solution for remote areas. Smart Hydro Power developed and registered a 100% renewable energy-based, dependable and simple-to-install hydro-kinetics micro hydropower solution that achieves an unprecedented levelized cost of electricity (EUR 20 per kWh) and maintenance cost (less than EUR 0.25/kWh). The solution comprises a hydro turbine incorporated into microgrid smart systems designed to electrify rural and distant locations. In June 2022, Statkraft, a European renewable energy company, has commissioned two new small hydropower plants in Norway, on both sides of the Hardanger mountain range. The Vesle Kjela and Storlia facilities will generate enough electricity to power around 4,000 Norwegian houses each year. Therefore, by emphasizing the need for innovative technologies to improve efficiency, grid integration and environmental compliance of these projects, the construction of new small-scale hydropower plants generates demand for smart micro hydropower systems.
Asia-Pacific smart micro hydropower systems market is projected to reach US$ 768 million by 2031. China ranked at top in terms of consumption of the energy globally, has been actively lowering its dependency on fossil fuels and utilizing the variety of energy sources to mitigate environmental problems including air pollution and carbon emissions. One renewable energy source that is crucial to this diversification strategy is hydropower.
Smart micro hydropower systems are becoming more and more necessary as China's renewable energy capacity grows to effectively use the potential of small-scale hydro resources. In December 2023, according to China's NEA, the nation's installed renewable energy capacity has surpassed 1.4 TW or roughly 49.9% of its overall capacity for producing electricity. There are 44 GW of biomass, 536 GW of solar, 404 GW of wind and 420 GW of hydropower potential. By the end of 2023, China will have installed more than 1.45 TW of renewable energy capacity, with installations of solar and wind power surpassing 1 TW.
In January 2023, 250 micro hydropower projects will be constructed in Uzbekistan. President of Uzbekistan announced during a conference that 50 potential locations for new micro hydropower projects had been chosen. The meeting was intended to discuss strategies for the hydropower industry as well as ways to improve the nation's energy supply. In addition to constructing new solar, wind and hydropower facilities and increasing the capacity of those already in place, the president stated that all forms of energy are being utilized to develop the nation's system, which further in turn opens the growth avenues for the regional product market. 27 projects totaling US$ 500 million have been implemented in the hydropower sector in the last several years, adding 260 MW of capacity. In the Uzbekhydroenergo system, the total capacity of the stations is more than 2,000 MW.
Middle East and Africa smart micro hydropower systems market is projected to reach US$ 26 million by 2031/ Renewable energy accounts for roughly 7% of the MENA region's total power generation capacity, with only about 28 GW of installed renewable energy production capacity, with hydropower accounting for the majority of this capacity at 21 GW. However, considering the 5% annual growth in electricity demand and the scarcity of easily accessible natural gas supplies, governments in the MENA region are now placing a high priority on increasing the capacity of renewable energy sources.
Governments throughout the region have set the objective for clean energy solutions, with Dubai being the most ambitious, planned to have 75% of its energy come from sustainable sources by the end of 2050. Approximately 98GW of new renewable energy generation capacity was planned for the region at the beginning of 2020 and an additional 39GW of capacity will be scheduled to come operational by 2025. In June 2023, RheEnergise has signed its first order with Hydropower Engineering (HPE) in Turkey for the production of its HD Hydro pumped hydro turbine. With a location close to Plymouth, Devon, HPE will produce the 500 kW HD Turbine for RheEnergise's demonstrator project. The first quarter of 2024 will include the delivery of the turbine.
6. Smart Micro Hydropower Systems Competitive Landscape
Several prominent companies competing vigorously to maintain and expand their market share. Companies are expanding their geographical presence to tap into emerging markets.
The major five companies in the global smart micro hydropower systems market companies hold 66% of the total market in 2023, whereas the major three players account for nearly 43% of the total market. These companies are at the leading edge of the development, invention, and application of smart micro hydropower systems, significantly influencing and propelling the industry.
6.1 Recent Developments in Smart Micro Hydropower Systems
|
Company |
Strategy |
Date |
Development |
|
Voith GmbH & Co. KGaA |
Expansion |
March 7, 2023 |
Voith Hydro established a new center of expertise in Lukavac, Bosnia and Herzegovina, for generator components. Western and North American markets are served by the center of expertise. |
|
General Electric Company
|
Product Development |
September 20, 2023
|
GE Vernova's Hydro Power division developed of the initial Kaplan turbine and generator unit at the Qairokkum hydropower plant in Tajikistan, marking the completion of the first phase. Post-refurbishment, the 21 MW unit has been upgraded to a capacity of 29 MW and is currently in operation, connected to the grid. The refurbishment of the remaining five units will similarly boost their output from 21 MW to 29 MW each, ultimately elevating the total plant capacity to 174 MW.
|
|
Canyon Hydro
|
Strategic Launch
|
July 01, 2022
|
Canyon Hydro launched a 25 MW Pelton Turbine for the Trio Creek Hydroelectric Project in British Columbia. The five nozzle, 25 MW Vertical Pelton turbine was designed, engineered, manufactured and installed by Canyon Hydro. Fully assembled the turbine weighs in at over 38,000 kg (83,000 lbs). In addition to supplying the turbine, Canyon also provided the Indar generator, turbine inlet valve, hydraulic power unit and bearing cooling water system.
|
7. Conclusion: Embracing Smart Micro Hydropower Systems for Competitive Advantage
In conclusion, the adoption of smart micro hydropower systems presents a promising avenue for businesses seeking competitive advantage through sustainable and efficient energy solutions. These systems, equipped with advanced technologies and intelligent control mechanisms, optimize efficiency and reliability in hydropower generation processes. The global market for smart micro hydropower systems is witnessing significant growth, driven by technological advancements, increasing demand for renewable energy, and supportive regulatory frameworks. Collaborative partnerships with educational institutions are addressing talent shortages and fostering innovation in the industry.
However, complex regulatory processes pose challenges to market development, particularly in navigating environmental regulations and securing project approvals. Despite these challenges, the industrial, commercial, and residential sectors are increasingly embracing smart micro hydropower systems to meet their energy needs sustainably. As major players invest in expansion and innovation, the competitive landscape of the smart micro hydropower market continues to evolve. Companies like Voith GmbH & Co. KGaA, General Electric Company, and Canyon Hydro are driving developments in technology and market presence.
Overall, the future of smart micro hydropower systems looks promising, offering businesses the opportunity to achieve energy independence, reduce carbon footprint, and gain competitive advantage in an increasingly sustainable global economy.
Read: Want to Know Major Investments in Smart Micro Hydropower Systems
Frequently Asked Questions (FAQ's)
Here are some frequently asked questions about the topic
1. Which Industry is investing Heavily in Smart Micro Hydropower Systems?
The residential sector holds a significant share of the global smart micro hydropower systems market. Market trends suggest a rising preference for residential smart micro hydropower systems, fuelled by the increasing demand for sustainable and decentralized energy solutions among homeowners worldwide.
2. Who are the Top 10 Players in Smart Micro Hydropower Systems?
ANDRITZ, Voith GmbH & Co. KGaA, GENERAL ELECTRIC, Toshiba Energy Systems & Solutions Corporation, Siemens Energy, Wärtsilä, Harbin Electric Corporation Co.,Ltd, Canyon Hydro, Gilbert Gilkes & Gordon Ltd., Yumes Frontier , Inc., Daikin Industries, Ltd.
3. What is the Demand for Smart Micro Hydropower Systems?
The global smart micro hydropower systems market is estimated to grow at a CAGR of is estimated to grow at a CAGR of 5.1% during the forecast period (2024-2031) from its current value of US$ 1,652.25 million in 2023 to reach a value of US$ 2,455.56 million in 2031.
4. Which Region is leading in Smart Micro Hydropower Systems?
Europe smart micro hydropower systems market reached US$ 603 million in 2023 and is projected to reach US$ 892 million by 2031, growing with a CAGR of 5.1% from 2024-2031. The need to increase energy security and diversify energy sources is highlighted by the impending gas supply crisis in Europe. As an alternative to imported fossil fuels, smart hydropower systems provide a dependable and domestic source that lessens reliance on unstable global markets.
5. What is the Driving Factor for Smart Micro Hydropower Systems?
Favourable Government Policies and Incentives and new Advancements in Micro Hydropower Technology are few driving factors for the market.
