The Report indicates that globally installed SHP capacity has had an increase of approximately 4 per cent since 2013, estimated at 78 GW in 2016, and that the total estimated SHP potential has increased to 217 GW, representing an increase of over 24 per cent. Overall, approximately 36 per cent of the total global SHP potential has been developed as of 2016.
Despite the improvement, the Report also emphasizes the underestimated potential of SHP and the room for a wider dissemination. South America, for example, possesses the second-highest level of undeveloped potential in the world yet, with the exception of Brazil, has so far not developed any significant portion of it due to barriers such as negative perceptions on hydropower among local populations and financial resource constraints.
The potential of SHP is particularly underestimated when compared to other small-scale renewable energies. For example, many countries focus on wind and solar potential through fiscal incentives, which have however become a barrier for SHP development since those incentives usually are not extended to SHP.
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