The hydropower industry witnessed a notable upswing in employment, with a growth rate of 2.3% in 2022, resulting in a workforce of over 2.49 million individuals, according to the Renewable Energy and Jobs Annual Review 2023 released by the International Renewable Energy Agency (IRENA).
In its comprehensive report, IRENA underlined several key messages, shedding light on the crucial role of decentralized energy solutions in providing reliable power and generating employment opportunities, especially in remote areas. The report pointed out that small-scale hydropower projects, ranging from 5 kW to 500 kW, require a significant workforce, from initial planning and equipment procurement to installation, operation, maintenance, and eventual decommissioning.
Furthermore, IRENA emphasized that with the right policy framework, employment in the renewable energy sector could experience substantial expansion in the coming years and decades. The report noted the importance of addressing vulnerabilities arising from global supply chain disruptions and geopolitical rivalries by implementing industrial policy measures that promote local capacity building and job creation.
The necessity of expanding education and training programs was also highlighted in the report to prevent skill gaps from widening. It emphasized the importance of inclusivity, calling for efforts to tap into talent among underrepresented groups, including women, youth, and minorities.
IRENA underscored the significance of labor rights and social dialogue in ensuring a just transition in the energy sector that safeguards workers' prospects.
In a dedicated section focusing on hydropower, the report revealed that hydropower remains a cornerstone of the global renewable energy landscape, boasting a remarkable global capacity exceeding 1,255 GW as of 2022. This capacity constitutes an impressive 37% of the total renewable energy capacity worldwide, surpassing wind and solar PV. Although annual additions to hydropower capacity have slowed, with approximately 20.5 GW added in 2022, countries like China, Brazil, Canada, and the United States continue to play pivotal roles in this sector.
To estimate job figures in the hydropower industry, IRENA utilizes an employment-factor approach combined with national-level data from select countries. According to the latest report, approximately 2.49 million individuals were directly employed in the sector in 2022, marking a 2.3% increase from the previous year. Operations and maintenance (O&M) roles constituted the majority of direct jobs, accounting for two-thirds, while 30% of jobs were related to construction and installation activities, and about 6% were in component manufacturing. The smallest proportion of the workforce was associated with O&M services.
China continued to dominate hydropower employment, representing a substantial 35% share of the global total. India followed with a 19% share, with Brazil, Vietnam, and Pakistan rounding out the top five contributors to employment in the sector.
