Heavy rains that followed a severe and extended drought two years ago have pushed Chinese hydropower output higher this year, with the strong performance of the segment seen extending over the summer as more rainfall is forecast. Hydropower generation rose by 8.4% in the first four months of the year, Bloomberg reported, noting that the increase led to a surge in hydropower company stocks on the Chinese market. The biggest dam operator in the country, Yangtze Power Co.
Earlier this year, Reuters noted in a report on the topic that due to the 2022 drought, China’s hydropower output had remained flat over the past three years thanks to the construction of new dams even as river flow diminished because of the lower rains. Between 2019 and 2023, installed hydropower capacity rose from 358 GW to 422 GW, which was an 18% increase. Output during the same period, however, was down by 1% because of insufficient water flows.
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