Governments and system operators have projected that power demand in major European countries could increase by as much as 7% per year until 2030. As demand for power surges in tandem with technological advancements, the role of renewable energy sources becomes increasingly pivotal. Laura Hochegger of GrECo International sits down with Janice Goodenough from HYDROGRID to discuss the untapped potential of hydropower in providing the necessary stability and flexibility to support a sustainable and resilient energy future.
Hochegger: For 2030, the EU has set a clear target for renewable energy to reach 42.5% of gross final energy consumption. Wind and solar energy are seen as key drivers to achieve that. What role does hydropower play in the green transformation of the energy sector?
Goodenough: Hydropower plays a crucial role in the EU’s green transformation. However, it’s often overshadowed by wind and solar in some of the discussions, despite the fact that 60% of all renewable generation worldwide comes from hydropower. In addition to being the largest source of renewable energy, what makes hydropower unique is its ability to provide both flexibility and reliability. Unlike wind and solar, which depend on weather conditions, hydropower can provide stable baseload energy, 24 hours a day. This is critical for ensuring grid stability as more intermittent renewables come online.
One of hydropower’s other advantages is its built-in storage capability. Many plants operate with reservoirs, allowing them to function as natural batteries, storing energy in the form of water. Unlike traditional batteries, which degrade over time, hydropower storage can continuously provide large-scale, long-duration energy storage, stepping in whenever wind and solar generation dips – whether that’s at night, during low-wind periods, or in extreme weather conditions.
And yet, we’re not tapping into hydropower’s potential because storage hydropower is not widely used as a battery for the grid. The storage capacity and flexibility available through hydropower right now is three times greater than the total battery storage capacity projected to be available by 2030. That is a huge, underutilised asset that is ready to make an impact today. If we modernize hydropower facilities, we can unlock even more value and ensure a stable, renewable-powered grid well beyond 2030. One that is capable of withstanding our increased electricity consumption.
The Sleeping Giant of Renewable Energy
Hochegger: In recent years, there has been a huge growth in battery storage capacities. Can we expect them to become the most important storage medium?
Goodenough: Battery storage has grown tremendously in recent years and will play an important role in energy transition. But will it become the most important storage medium? Not on its own. While batteries are great for short-term balancing, they degrade over time and can only provide storage for a couple of hours – not nearly enough to cover even just the daily seasonality in net demand. Pumped storage hydropower, on the other hand, offers proven, long-term energy storage of days, weeks and months on a scale that batteries simply can’t match.
Hydropower is what I often call the Sleeping Giant of renewable energy. With its massive storage capacity, it acts as a natural green battery, providing reliable, flexible, and long-duration storage. By 2035, hydropower’s storage capacity is projected to reach 12,500 GWh, compared to just 350 GWh from battery storage – a staggering difference that stems mainly from the fact that ‘pound for pound, meaning per GW of storage capacity, hydropower simply has an order of magnitude larger storage volume, measured in GWh.
So, while battery storage is an important and growing piece of the puzzle, hydropower remains the backbone of a stable, renewable-powered future.
The Untapped Potential of Hydropower
Hochegger: The physical technology of hydropower seems to be optimised to a very high degree; it hasn’t changed much in the last 100 years. So why does a significant part of hydro energy’s storage potential remain unused?
Goodenough: It’s true that the fundamental technology behind hydropower has remained largely unchanged for over a century – and for good reason. It’s efficient, robust, and built to last. But while the physical infrastructure is optimised, its full potential remains underutilised, especially when it comes to small-scale hydro storage.
Hydro storage plants, i.e. hydro plants with a connected reservoir lake, can store massive amounts of energy, acting as a natural green battery that can balance out fluctuations in wind and solar generation. Yet, despite having the largest energy storage capacity of any technology, much of it remains locked away due to operational, regulatory and technical barriers. If we’re serious about leveraging long-duration renewable storage, we need to address these roadblocks through a multifaceted approach, including regulatory reforms, investment in digital technologies, and infrastructure modernisation.
Understanding Industry Challenges
Hochegger: Can you expand a bit on the challenges hydropower operators face?
Goodenough: There are four key roadblocks which are causing challenges for hydropower operators:
Lack of Digitalisation: While the mechanical aspects of hydropower are well-established, the integration of digital technologies is lagging. Without advanced digital tools, operators may struggle to optimise storage and dispatch strategies in the fast-paced way that would be necessary to balance the grid, leading to inefficiencies and underutilisation of available capacity. Embracing digital solutions is crucial for modernising operations and maximising the potential of existing infrastructure.
Regulatory Constraints: Many hydropower plants possess the physical capacity to store energy by adjusting water levels in their reservoirs. However, regulatory limitations often restrict these operations. For instance, some concessions do not permit variations in water levels, even when such adjustments are technically feasible and environmentally safe. This regulatory rigidity prevents operators from fully leveraging their storage capabilities.
Climate Change and Unpredictable Weather Patterns: The increasing unpredictability of weather due to climate change poses operational challenges. Hydropower operators can no longer plan with the same level of certainty as in the past, making it difficult to optimise storage and generation schedules.
Aging Infrastructure: Many hydropower facilities are decades old and require significant investment to modernise. Updating technical equipment to enable faster and more flexible dispatch according to grid needs is essential to fully utilise pumped hydro storage potential.
The Next Frontier in Digital Solutions for Hydropower Optimisation
Hochegger: HYDROGRID enables hydropower operators optimisation via one key competitive advantage: digitalisation. How does the platform help to unlock the potential of hydro pump energy storage?
Goodenough: Digitalisation is the key to unlocking the full potential of hydropower, and that’s precisely what our platform, HYDROGRID Insight, aims to achieve. We optimise operations by analysing real-time data, generating strategies to maximise revenues and minimise risks. Our platform automates water usage, reduces spillages, and aligns production with market opportunities. It adapts to changing conditions and supports strategic planning by evaluating investment scenarios.
HYDROGRID Insight ensures hydropower remains vital in renewable energy transition. It processes telemetry data for precise, automated optimisation, integrating forecasts, historical inflows, market prices, and constraints to create production plans.
About Janice Goodenough
Janice Goodenough is CEO at HYDROGRID and an expert in optimising flexible power generation assets. She also serves on the European Energy Analyst Meeting Steering Committee.
About HYDROGRID
HYDROGRID is a pioneering company dedicated to making hydropower a competitive and resilient renewable energy source. They offer an integrated water management platform that maximises the efficiency and environmental compliance of hydropower plants, regardless of their size or complexity. With a mission to harness the full potential of water resources, HYDROGRID is committed to supporting the energy transition towards a carbon-free future. Their technology powers 170+ hydropower plants across three continents, from small run-of-river sites to massive storage reservoirs.
Laura Hochegger
Deputy Head of Sustainability & Innovation
GrECo Group
T +43 664 822 18 66
Janice Goodenough
CEO
HYDROGRID
