Upgrading today’s hydropower fleet: increasing capacity through innovation

Europe’s hydropower fleet, much of which is on average 45 years old (IEA), is one of the largest sources of renewable electricity in the EU at 26.4% of gross electricity consumption in 2024 (Eurostat). Yet ageing infrastructure and evolving energy system needs are creating a new imperative: to modernise existing assets for higher performance, flexibility, and environmental compatibility. With grid balancing requirements rising due to the expansion of variable renewables, upgrading existing hydropower capacity can deliver substantial gains, both in energy output and system stability, without the footprint and cost of greenfield construction.  

The European energy market faces rising pressure to integrate increasing shares of variable renewable energy, manage seasonal imbalances, and ensure grid stability while reducing new land and water use. As opportunities for new large-scale hydropower construction diminish, extending and enhancing the existing fleet becomes the most efficient and sustainable path to additional clean capacity. Through targeted refurbishment, such as dam heightening, head loss reduction in waterways, increased efficiency of electro-mechanical equipment, digitalisation, and hybridisation, it is estimated that generation could be increased by 8.4% for the EU and 9.4% for the whole Europe (JRC, 2021).  

This opportunity is both technical and strategic, with modernisation not only increasing installed and available capacity but also provides essential flexibility and storage to balance Europe’s net-zero transition. Yet achieving this potential requires coordinated policy support, innovative financing models and technologies, and increased collaboration. This session explores how Europe can unlock untapped potential within its existing assets to meet climate goals and ensure long-term energy security.

Session objectives

• Examine the technical and policy drivers behind Europe’s hydropower modernisation wave.
• Present leading examples of capacity upgrades through digitalisation, turbine efficiency improvements, and hybrid storage integration.
• Discuss financing and regulatory frameworks that enable reinvestment in existing hydropower assets.
• Identify opportunities for cross-border collaboration, innovative solutions, and knowledge transfer.
• Define how modernisation supports Europe’s decarbonisation and system resilience targets for 2030 and beyond.

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