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03 the project underscores the company’s concern that geothermal passenger vehicles and buses in Iceland with fuel generated development is expensive compared to competing technologies through electrolysis using geothermal power.92 86 and carries both high development risk and high upfront costs. As noted earlier, binary-cycle geothermal power and heat While Pertamina has several projects in the pipeline, the company technology is dominant in some markets, due in part to its announced in late 2018 that it had greatly curtailed its planned suitability for relatively low-temperature resources. Among near-term capacity additions, aiming for a total installed capacity the key providers of this technology are Ormat Technologies of 1.1 GW by 2026 (up from the current 0.6 GW) instead of the (United States), Exergy (Italy) and Turboden (Italy, a subsidiary previous target of 2.2 GW.87 of Mitsubishi Heavy Industries of Japan). In Turkey, binary-cycle In Europe, the geothermal industry was dismayed by a draft technology from Ormat and Exergy represented more than half decree of the Italian government that would cut the country’s of all installed capacity, and all capacity under construction as public support for geothermal energy. The industry was of 2018.93 concerned that such a move would undermine Italy’s historic Ormat manufactures turbines and other components in Turkey role in the development of the sector globally and would increase under a local subsidiary to qualify for local incentives, and uncertainty and erode investor confidence. In addition, it was installed its technology at 28 power plants in the country (totalling argued that the decree would be in violation of Italy’s commitment 523 MW) in the decade ending in 2018.94 to the EU's Renewable Energy Directive, in that it would amount to retroactive changes to Italy’s renewable energy support.88 In addition to Turkish installations, completed binary-cycle plants in 2018 include the Olkaria extension in Kenya (Ormat), the Velika Work also continued on the research front during 2018. For Ciglena plant in Croatia (Turboden), the three new units noted in example, the European Commission awarded the Geothermal the United States (Ormat, Turboden and subsidiary of Chinese Emission Control (GECO) project, a consortium of 17 partners corporation Zhejiang Kaisan), the low-temperature project in across Europe, EUR 16 million (USD 18.3 million) to advance Iceland (Climeon, of Sweden) and New Zealand’s Te Ahi O Maui MARKET AND INDUSTRY TRENDS research into eliminating carbon dioxide (CO2) and hydrogen plant (Ormat).95 sulphide emissions from open-loopi geothermal plants. One focus of the GECO project is the reinjection of these gases for subsequent mineralisation in underground rock deposits.89 In addition, some notable ideas in geothermal energy utilisation The availability of emerged during the year. Algaennovation (Israel) signed a better information contract with an Icelandic utility, ON Power, to co-locate micro- about geothermal algae production for aquaculture at the Hellisheidi geothermal resources helps to attract power plant in southwest Iceland.90 If successful, this effort to produce low-cost omega-3 supplements for humans would be new investment a positive step towards further and more complete use of the and to generate new 91 geothermal resource, including its CO2 stream. The Hellisheidi projects. plant also incorporated a hydrogen electrolyser in 2018, with a plan to serve a small but growing fleet of hydrogen fuel cell i Stand-alone closed-loop binary-cycle power plants can avoid significant venting of CO2 and other pollutants from the geothermal fluid. Conventional open- loop power plants vent gases to the atmosphere. 85 RENEWABLES 2019 GLOBAL STATUS REPORT China added 7.0 GW of hydropower capacity in 2018 (excluding HYDROPOWER pumped storage) – similar to its additions in 2017 – for a year- end total of 322.3 GW.9 Hydropower generation increased 3% to HYDROPOWER MARKETS 1,234 TWh in 2018.10 China’s total completed hydropower projects The global hydropower market in 2018 looked very similar to the during the year represented investment of CNY 67.4 billion preceding year in terms of capacity growth and concentration (USD 9.8 billion), an increase of 8.4% over 2017.11 While the of activity, adding an estimated 20 GW to reach a total installed country’s growth in hydropower capacity (24%) was not in capacity of around 1,132 GWi.1 Given the large amount of proportion to overall growth in electricity demand (28.6%) during hydropower capacity in place globally, the overall ranking of the five-year period of 2013-2018, plant utilisation improved countries did not shift during the year. The top 10 countries for enough to raise hydropower’s share of China’s electricity total capacity remained (in order) China, Brazil, Canada, the generation from 16.9% to 17.4% during the period.12 United States, the Russian Federation, India, Norway, Turkey, Pakistan reached a milestone in 2018 with the commissioning Japan and France, which together represented more than two- of three long-delayed projects. With a combined output 2 thirds of global capacity at year’s end. (p See Figure 23 and of nearly 2.5 GW, these projects increased the country’s Reference Table R16.) total hydropower capacity by approximately a third, to nearly Worldwide generation from hydropower, which varies each year 9.8 GW.13 The completed projects were the 108 MW Golen Gol with shifts in weather patterns and other local conditionsii, was an plant, the 969 MW Neelum Jhelum plant and the 1,410 MW estimated 4,210 TWh in 2018.3 Global pumped storage capacity 4th Extension to the Tarbela Station, which now commands (which is counted separately) increased about 1% during the year.4 nearly 4.9 GW of capacity.14 Progress also was made towards initiating construction of the decades-delayed 800 MW As in many preceding years, China led in commissioning new Mohmand Dam project, which, when completed, is expected to hydropower capacity, representing more than 35% of new help with flood control, irrigation of existing and new farmland, installations in 2018.5 Brazil came second, as in 2017, followed and provision of drinking water to the city of Peshawar.15 by Pakistan and Turkey, all adding more than 1 GW of capacity.6 Other countries that added significant capacity included (in Hydropower capacity in Turkey expanded by just over 1 GW in order of additions) Angola, Tajikistan, Ecuador, India, Norway and 2018, for a year-end total of 28.3 GW – or 32% of the country’s Canada.7 (p See Figure 24.) China also was home to most of the overall generating capacity.16 Following a drought in 2017, new pumped storage capability in 2018, with smaller additions hydropower generation rebounded 5.5% to 60.9 TWh, providing completed in Austria and the United States.8 more than 20% of Turkey’s electricity supply for the year.17 i Where possible, all capacity numbers exclude pure pumped storage capacity unless otherwise specified. Pure pumped storage plants are not energy sources but means of energy storage. As such, they involve conversion losses and are powered by renewable and/or non-renewable electricity. Pumped storage plays an important role in balancing grid power and in the integration of variable renewable energy resources. ii Hydropower output also may vary with other local priorities, such as the use of storage capacity (reservoirs) to balance variable renewable electricity genera- tion and to manage water supply, as well as with market conditions, such as the price of competing sources of energy. FIGURE 23. Hydropower Global Capacity, Shares of Top 10 Countries and Rest of World, 2018 28% 9% Brazil China 7% Next Canada 6 countries 7% United States Russian Federation 4 % 31% India 4 % Rest of World % 17 Norway 3 % Turkey 3 % Japan 2 % France 2 % Note: Total may not add up due to rounding. Source: See endnote 2 for this section. 86 03 FIGURE 24. Hydropower Capacity and Additions, Top 10 Countries for Capacity Added, 2018 Gigawatts 350 +7.0 +0.4 300 80 Added in 2018 250 60 2017 total 200 50 +0.5 150 40 +0.4 +3.8 +1.1 100 20 50 +2.5 +0.6 +0.7 +0.6 0 China Brazil Pakistan Turkey Angola Tajikistan Ecuador India Norway Canada Source: See endnote 7 for this section. MARKET AND INDUSTRY TRENDS India increased its hydropower capacity by 0.5 GW in 2018, for a second unit was a year-end total of 45.1 GW.18 The single-largest project to come anticipated online in As in 2017, China and into service in India was the Kishanganga plant, comprising three 2019.27 The Rogun project Brazil accounted for 110 MW units, in the northern state of Jammu and Kashmir.19 is not expected to be The project drew on the local manufacturing and construction fully completed until more than capacity of Bharat Heavy Electricals Ltd., as did the fourth and 2032, and if the dam final 30 MW unit added at the Pulichintala plant in Telangana.20 rises to the planned 335 half of all new hydropower The 110 MW Pare hydropower plant in Arunachal Pradesh also metres, it will be one 28 capacity installations. was completed during the year.21 India’s remaining hydropower of the world’s tallest. installations comprised relatively small facilities, totalling about An earlier assessment 100 MW.22 By year’s end, India had a pipeline of 37 additional by the World Bank hydropower projects representing 12 GW of capacity, although 16 highlighted the potential macroeconomic risks associated of those (6 GW) were stalled for various reasons, such as lack of with such a costly project, as well as concerns about the funds as well as environmental concerns.23 required population resettlements and the potential impacts on downstream water flows.29 Tajikistan also launched a Although annual additions in India continue to be significant project (with World Bank funding) to refurbish and modernise in absolute terms, hydropower has ceded ground relative to the 3 GW Nurek plant, which could boost the country’s solar PV and wind power capacity.