Underground Hydropower Plants Market Driven by Increasing Awareness about Benefits over Large Hydropower

Published By : 26 May 2016 | Published By : QYRESEARCH

Underground hydropower plants are hydropower plants that are built to accommodate an industrial unit or a small residential community. Underground hydropower plants are usually found in remote areas, where it can be difficult to transport electric power from large hydropower plants. In such areas, decentralization of energy generation in the form of small-scale underground hydropower plants presents several advantages over large hydropower. Here are some of the main ones:

Reduced Costs:

Due to the local production of electric energy in underground hydropower plants, there is no need for distribution infrastructure. This results in much lower energy costs than with large hydropower plants supplying power into the main grid, which eventually reaches the remote location. Lack of distribution infrastructure also results in reduced wastage of electric power during distribution.

Flexible Power Supply:

Unlike large hydropower plants, in which controlling and supervising the distribution process can be cumbersome, underground hydropower plants can be more flexible in how they generate and distribute power. This helps make the power distribution more efficient. 

Avoiding Environmental Damage:

Large hydropower plants are increasingly coming under the scanner due to the environmental damage they cause. Large dams not only choke the flow of the river, reducing the amount of water reaching further downstream, but also displace the local flora and fauna due to the formation of their reservoir. This can be avoided in underground hydropower plants, which are much more environment-friendly and also can be customized to a high degree to the site’s terrain.

The major regional markets for underground hydropower plants are the U.S. and Canada, with the latter edging out the former. The abundant water reserves in North America are the reason for this. The increasing focus on decentralization of power generation has also helped boost the underground hydropower plant market in North America. In the coming years, though, developing countries such as Brazil, Ghana, Argentina, Peru, Colombia, and Nigeria present promising opportunities for players operating in the global underground hydropower plant market.

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