Africa added more than 4.2 GW of new hydropower capacity in 2025, which is the second successive year new hydropower capacity added exceeded 4 GW, says the International Hydropower Association (IHA) in its '2026 World Hydropower Outlook'.

Africa has seen significant hydropower progress for the second consecutive year, which places it at the forefront of global growth.

During the past year, the Grand Ethiopian Renaissance Dam (GERD) was inaugurated and is now Africa’s largest power station. Tanzania’s Julius Nyerere hydropower project was also completed in 2025 and has substantially reduced dependence on diesel generators in that country.

Together, these projects significantly reshape regional electricity supply in East Africa, the IHA says.

Targeted modernisation also contributed meaningfully to 2025 capacity additions, as Nigeria's Kainji plant added 80 MW, bringing total capacity to 600 MW.

Additionally, Inga II in the Democratic Republic of Congo (DRC) commissioned an initial 50 MW supply to the Kamoa-Kakula Copper Complex, with further increases anticipated as rehabilitation continues.

However, a notable gap remains, as no pumped storage was commissioned in Africa in 2025. The continent added about 4.5 GW of solar during the year and there is a need for pumped storage to balance supply and provide system flexibility, as variable renewable capacity scales up, the IHA says.

Additionally, transmission and distribution bottlenecks constrain Africa’s hydropower potential, with fragmented grids preventing power from reaching demand centres efficiently.

However, progress is evident, such as the 1 065 km Ethiopia-to-Kenya Eastern Electricity Highway, which has driven strong regional trade growth since 2022.

West Africa also marked a milestone in November 2025 when all national grids were synchronised for four hours, which validated the viability of a coordinated regional network.

There are other planned interconnectors that will deepen integration, including Tanzania- Zambia, Ethiopia-Somalia and Angola-DRC, the IHA points out in the report.

Further, only around 10% of Africa’s hydropower potential has been realised, representing one of the most significant development opportunities in the world.

This holds implications for electrification, industrial growth and energy security across a continent growing at twice the global average.

However, investment conditions remain challenging, as single-buyer models, regulated tariffs and financially constrained utilities complicate long-term power purchase agreements, delaying financial close.

Despite this, rising energy demand is attracting private and hybrid investment, particularly from industrial users seeking dedicated, reliable supply, the report shows.

The report indicates growing momentum, with Angola completing the critical water discharge tunnel for the 2 172 MW Caculo Cabaça hydropower plant.

The plant is expected to start generation in mid-2027 and, once operational, will become Angola’s largest single source of electricity.

In Burundi, a total of 51.65 MW of hydropower capacity was commissioned across three new conventional plants in 2025, which increased the country's total installed electricity generation capacity by approximately 44%.

Additionally, in Cameroon, the 420 MW Nachtigal hydropower scheme was fully commissioned in 2025. The final unit, with a capacity of 60 MW, came online in March, which enables the project to supply roughly 30% of Cameroon’s electricity demand.

In South Africa, State-owned utility Eskom and French development finance institution the Agence Française de Développement signed a €6.5-million grant agreement in 2025 to support the 1 500 MW Tubatse Pumped Hydro Storage project.

This will be the fifth grid-connected pumped storage scheme in South Africa and the sixth on the African continent, the report says.

“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,” says IHA president Malcolm Turnbull.

“Hydropower and pumped storage are uniquely positioned to provide these services at scale,” he says.

“The story of this year’s Outlook is the rapid acceleration of pumped storage globally. 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,” says IHA CEO Eddie Rich.

“Simultaneously, conventional hydropower remains essential for reliable renewable electricity, water management and economic development worldwide,” he adds.

Meanwhile, the report also provides an overview of hydropower in Africa, stating that 179 TWh by hydropower was generated in 2025, and the continent's installed capacity is 52 GW. Total pumped storage capacity was 3 726 MW.