Market overview in Europe
Even in pre-industrial times, hydropower was used to drive mills, sawmills and hammer mills. The first hydroelectric power stations were built and operated at the end of the 19th century. Today, hydropower as a source of energy also has many benefits.
- The technology is proven and mature, extremely durable and subject to long amortisation periods.
- The relatively high investment costs are compensated for by the long service life and low operating costs.
- The long refurbishing intervals and low subsequent investments lead to relatively low life cycle costs and very high residual values for hydropower plants.
- The energy efficiency of hydropower is extremely high, averaging 90 - 95 %. Compared to other energy sources, hydropower is by far the most efficient technology.
- A hydropower plant generates an average of around 5 gigawatt hours of electricity per MW of installed capacity per year, which is around five times as much as a photovoltaic system.
Average efficiencies by energy source in percent
The installed capacity of hydropower plants in the EU 27 is more than 157 gigawatts. Of these, there are more than 10,000 small hydropower plants with an output of up to 5 MW in the Alpine region alone, which represent the fund's target investments. The total value of hydropower plants in the EU 27 amounts to more than EUR 650 billion. The market for hydropower plants in the large-scale segment (over 5 MW) is in high demand from the major capital collectors due to the high investment sums involved, but availability is limited.
