Modernizing Hydropower to Maximize its Potential

With rising global energy demand and more frequent extreme weather, the need for reliable, flexible, and clean power has never been more urgent. As wind and solar dominate global investment in renewable energy, hydropower’s potential to enhance grid resilience and expand energy supply remains largely untapped, and that potential is only expanding with the integration of advanced technologies like artificial intelligence (AI).

Hydropower stands out among other renewable energy sources, and what sets hydropower apart is its rare combination of reliability and flexibility, scarcely found in other renewable energy sources. Unlike wind and solar, hydropower delivers steady, around-the-clock energy. This makes all the difference in the face of severe weather events and emergencies.

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Hydropower can be rapidly dispatched, meaning its output can be changed on demand at the request of an operator whenever the grid calls for it. This powerful ability to balance supply and demand protects against grid fluctuations and ensures electricity is available throughout normal and extreme conditions.

Underinvestment is Capping Hydropower’s Potential

Despite its critical role in a resilient energy future, hydropower remains underfunded and underprioritized. While funding for solar and wind projects increased in 2023, investments in other renewable sources including hydropower decreased by double digits. Even landmark policy efforts like the Inflation Reduction Act—designed to accelerate clean energy, prioritizing wind and solar investment—fall short when it comes to fully supporting hydropower’s potential. This, combined with recent federal divestment in the U.S. from resources critical to hydropower operations like weather and climate data, undermines the sector’s ability to adapt, ultimately putting grid reliability and decarbonization goals at risk.

The harsh reality is that there’s never been a more crucial time to invest in hydropower. Many of today’s hydropower plants were built decades ago, making them long overdue for modernization. With rapid growth in global energy demand—in 2024, global electricity consumption was nearly double the annual average over the past decade—these aging assets are at risk of falling short when we need them most. Add in regulatory bottlenecks affecting permitting and licensing, and we’re missing out on the full value of one of our most reliable energy resources.

New Technologies Present Key Opportunities

While outdated infrastructure remains a hurdle, the rapid advancement of AI has presented many compelling opportunities for hydropower’s future. Already, we’ve seen that implementing AI for operational efficiency is improving water resource management, providing security to communities, and reinforcing hydropower’s reliability.

Recent events have indicated that our power grid remains highly vulnerable to severe weather, and AI can be harnessed to improve response to these events. When other renewables falter during extreme weather events, the application of AI technologies bring additional efficiency to water management and flow forecasting, key activities for hydropower operators.

AI-powered forecasting models are outpacing traditional forecasting methods as they learn from vast, diverse datasets—delivering sharper, location-specific water flow predictions during time-sensitive and high-risk events.

With AI forecasts, water utilities can better brace for the fallout of storms, including floods, widespread power outages, damaged infrastructure, and environmental hazards. The stakes are high: nearly 80% of major outages between 2000 and 2023 were caused by severe weather. Just last year, hurricanes Helene and Milton knocked out power for more than 11 million people, while winter storms left 850,000 Californians in the dark. These aren’t isolated incidents—they’re part of a growing pattern that demands smarter, faster, and more predictive solutions.

Last September, Hurricane Helene’s record rainfall and flooding heavily impacted hydropower operations along critical rivers and reservoirs. In examples like this, AI forecasting models can provide more detailed and precise forecasts to help better prepare emergency response plans to limit costly spillage, inefficient power generation, and downstream flooding risks.

It’s Time to Prioritize Hydropower Modernization

We can no longer overlook hydropower as a strategic investment in the future of our energy grid. For decades, hydropower has proved to be one of our most reliable and flexible energy resources. But without renewed investment and further adoption of advanced technologies, we will lose out on hydropower’s vast potential.

Imagine a world in which we use cutting-edge technology to create advanced forecasting predictions to unlock new opportunities to optimize hydropower. We can predict floods with more granularity and proactively manage the impacts on communities. We have data-driven insights that let us anticipate seasonal drought and allocate water more efficiently. Our energy grid is so flexible and resilient that power outages and infrastructure damage during extreme weather events are a rare occurrence.

It might sound like a utopian world out of a fiction novel, but we have already built the technology that could make this vision into reality.

Unlocking Hydropower’s Full Potential—A Call to Action

As global energy demands surge, we must prioritize hydropower in energy security planning. With the right investments and a broad adoption of modern technology, we can unlock greater supply and transform hydropower into a cornerstone of a resilient, future-ready grid.

To get there, we need action, collaboration, and targeted investment. Expanding data access and collaboration across public and private sectors is essential. Weather data from government organizations, especially National Oceanic and Atmospheric Administration (NOAA), is critical for improving hydropower operations. Pairing this powerful data with the latest in AI-driven hydropower solutions can significantly improve efficiency, forecasting, and revenue from hydro assets.

It’s time to take bold steps to realize this vision of modernization and fully utilize hydropower as a strategic asset. This tried and tested energy solution, combined with AI technology, is key to the future of our energy grid.

—Jason Smith is vice president of Growth & Commercialization at Upstream Tech, where he leads commercial strategy for HydroForecast, an AI-powered streamflow forecasting solution that optimizes hydropower operations and water resource management.