India is targeting 100 gigawatts of pumped storage capacity by 2035-36, but it is nowhere near what China is pursuing, the 2026 Global Hydropower Outlook said.

The International Hydropower Association (IHA) released the outlook on Wednesday (June 24, 2026), highlighting China-led East Asia’s continued leadership in global hydropower development.

According to the IHA report, India topped the chart among Central and South Asian countries by adding 4,267 megawatts of hydropower in 2025, followed by Nepal with 468 MW, Israel with 344 MW, the United Arab Emirates with 250 MW, and Pakistan with 156 MW. India also had the highest installed capacity with 56,336 MW, ahead of Russia with 54,361 MW and Iran with 13,295 MW.

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However, China’s dominance in global hydropower development grew in 2025 when it began construction on the Yarlung Zangbo River Hydropower Project. The IHA outlook says the Yarlung Zangbo project would generate roughly three times more electricity than the Three Gorges Dam, which has an installed capacity of 22500 MW.

The Yarlung Zangbo, also called Yarlung Tsangpo, flows into India as the Siang River in Arunachal Pradesh before meeting two others in Assam to form the Brahmaputra. India is pushing the 11,000 MW Siang Upper Multipurpose Project in Arunachal Pradesh as a defensive countermeasure against the 60,000 MW Yarlung Tsangpo project in Tibet’s Medog County.

India justifies the proposed Siang mega-dam as a strategic buffer to regulate water flow, prevent sudden Chinese water diversions, and mitigate downstream flood risks.

Asian power demand

The IHA outlook says growth in Asia is driven by rapid renewable energy deployment, rising electricity demand, and increasing investment in long-duration energy storage and regional grid integration.

The East Asia and Pacific region generated 1,854 TWh (terawatt-hour) of electricity from hydropower in 2025 and added 14 GW of new hydropower capacity, including 7,605 MW of pumped storage. The total installed hydropower capacity now stands at 590 GW, with pumped storage accounting for 106 GW.

Often referred to as a ‘water battery’, pumped storage capacity surpassed 200 GW globally, cementing its status as the world’s largest source of long-duration energy storage. A “record-breaking” 11.7 GW of pumped storage was added in 2025.

The IHA report cites India’s Central Electricity Authority (CEA) as saying that the country has a pumped-storage potential of 288 GW, one of the largest opportunities globally. “The CEA has outlined a roadmap targeting 100GW of pumped storage capacity by 2035-36,” the report adds.

“China remains the leading contributor in global hydropower development, accounting for more than 40% of worldwide hydropower capacity additions in 2025. More than 300 GW of hydropower is currently under construction in the country, including 217.5 GW of pumped storage,” the IHA outlook says.

“This reflects a strategic shift from capacity expansion alone towards system-level value: strengthening grid flexibility, reliability, energy security, and hydro-wind-solar-storage integration,” it says.

Geopolitical tensions

IHA president Malcolm Turnbull says countries are increasingly focusing on long-duration storage and resilient domestic power generation due to geopolitical tensions disrupting energy imports.

“As electricity systems become more dependent on variable renewables, and geopolitical tensions make reliance on imports more challenging, countries are increasingly recognising the importance of flexibility, long-duration storage and resilient domestic generation. Hydropower and pumped storage are uniquely positioned to provide these services at scale,” he said.

IHA’s chief executive officer, Eddie Rich, notes the rapid acceleration of pumped storage across the globe. “Record additions, expanding pipelines, and growing policy support all point to a recognition that the clean energy transition cannot succeed without large-scale flexibility and storage. At the same time, conventional hydropower remains essential for reliable renewable electricity, water management, and economic development worldwide,” he said.

ASEAN Power Grid

The outlook notes that beyond China, hydropower is increasingly shaping regional energy integration across Southeast Asia. The region currently has 52.6 GW of conventional hydropower and 35.8 GW of pumped storage projects at various stages of development, as countries pursue more flexible and interconnected renewable energy systems.

“The ASEAN Power Grid initiative gained further momentum in 2025 through renewed cooperation frameworks and a five-year action plan designed to accelerate grid integration, harmonise technical standards and align policy strategies. Financing support from institutions including the World Bank, the European Union, and the Asian Development Bank is helping unlock cross-border infrastructure and interconnection projects,” the report says.

“Laos, Myanmar, and Sarawak in Malaysia are increasingly positioning themselves as regional hydropower exporters. New transmission links and proposed undersea cable projects between Sarawak and Singapore, alongside Malaysia–Singapore trading arrangements, are laying the groundwork for a more connected regional grid capable of balancing renewable generation across borders,” the report further says.

The outlook mentions South Korea’s case to underline how countries are banking on pumped-storage hydropower for long-duration energy storage and renewable integration. South Korea resumed major pumped-storage construction for the first time in 14 years with the 500 MW Yeongdong Pumped Storage Plant. Similarly, the Philippines, Cambodia, Thailand, and Vietnam have advanced projects to deliver 6 GW, 1,000 MW, 2.5 GW, and 1,200 MW of pumped storage capacity, respectively.