Africa added more than 4,200 megawatts (MW) of new hydropower capacity in 2025, making it a fast growing region for hydropower development globally, according to a new report released by the International Hydropower Association (IHA).

The report, 2026 World Hydropower Outlook, said the continent commissioned 4,297 MW of new hydropower capacity during the year, the second consecutive year that additions exceeded 4,000 MW.

The growth was driven largely by the completion of mega projects in Ethiopia and Tanzania, even as more than 90 per cent of Africa’s hydropower potential remains untapped.

The findings come as Nigeria continues to grapple with chronic power shortages, frequent grid collapses and one of the world’s largest electricity access deficits despite possessing significant hydropower resources.

Malcolm Turnbull, president of the International Hydropower Association, said countries are increasingly turning to hydropower and energy storage solutions as they seek reliable electricity supplies amid growing dependence on renewable energy and rising geopolitical uncertainties.

“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.

Ethiopia, Tanzania lead Africa’s growth

According to the report, Ethiopia fully inaugurated the 5,000 MW Grand Ethiopian Renaissance Dam (GERD) in 2025, making it the largest power station in Africa.

Tanzania also completed the Julius Nyerere Hydropower Project, a development the report said has substantially reduced the country’s dependence on diesel-powered electricity generation.

The report noted that Africa’s hydropower expansion places the continent at the forefront of global growth in conventional hydropower development.

However, it warned that progress remains far below potential.

“Despite progress, only around 10% of Africa’s hydropower potential has been realised, representing one of the most significant development opportunities in the world, with direct implications for electrification, industrial growth and energy security across a continent growing at twice the global average,” the report stated.

Most projects, it said, remain stalled by financing difficulties, regulatory bottlenecks and delays in securing approvals.

The report also identified weak transmission infrastructure and fragmented electricity networks as major barriers preventing power generated from reaching consumers efficiently.

Nigeria’s modest progress

Nigeria received only a brief mention in the report, which highlighted the rehabilitation of the Kainji Hydroelectric Power Station.

According to the report, the upgrade added 80 MW to the facility, increasing its installed capacity to 600 MW.

The modest increase contrasts sharply with the scale of new investments seen elsewhere on the continent.

Hydropower remains a critical component of Nigeria’s electricity supply. The Kainji, Jebba and Shiroro hydroelectric plants together account for a significant share of power delivered to the national grid.

Yet electricity supply remains inadequate for Africa’s most populous nation.

Data from the Nigerian Electricity Regulatory Commission (NERC) show that while Nigeria’s installed generation capacity exceeds 14,000 MW, actual available generation is significantly lower because of gas constraints, transmission limitations, ageing infrastructure and operational challenges.

The country has also experienced multiple national grid collapses in recent years, highlighting long-standing weaknesses in the electricity value chain.

Energy access challenge

The report arrives at a time when Nigeria is seeking to expand electricity access and reduce dependence on self-generated power.

According to the World Bank, about 86 million Nigerians lack access to electricity, giving the country the largest electricity access deficit in the world.

Businesses and households spend billions of naira annually on diesel and petrol generators to compensate for unreliable grid supply, a situation that raises production costs and constrains economic growth.

Although the 700 MW Zungeru Hydropower Plant has begun contributing electricity to the grid, several proposed hydropower projects across the country have faced delays linked to funding, environmental concerns and implementation challenges.

The IHA report suggests that while Africa is witnessing a resurgence in hydropower development, countries such as Nigeria will require significant investments in generation, transmission and energy storage infrastructure to fully benefit from the continent’s vast renewable energy potential.