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5 000 4 000 3 000 2 000 1 254 1 000 0 1 784 2016 600 1 824 1 704 1 435 2010 1 236 2011 2012 Capacity (MW) 2017 2018 2019 ≥ 800 1 321 1 494 2013 1 361 2014 1 491 2015 ≤ 10 200 400 RENEWABLE POWER GENERATION COSTS 2019 Figure 5.2 Total installed costs by project and global weighted average for hydropower, 2010-2019 Source: IRENA Renewable Cost Database. The increase has been driven by rising installed costs for projects in Asia, Africa and South America. The data appears to suggest that many countries in these regions are now developing hydropower projects at less ideal sites, where such projects are located further from existing infrastructure, or the transmission network, resulting in higher logistical costs, as well as boosting grid connection costs. This results, overall, in higher installation costs. Looking at the global weighted-average total installed cost trends for large hydro (greater than 10 MW in capacity) and small hydro (10 MW or less) suggests that average installed costs for small-hydro have increased at a faster rate than for large hydropower projects (Figure 5.3). However, this trend remains to be confirmed, given that data in the IRENA Renewable Cost Database for small hydropower projects is noticeably thinner for the years 2016-2018. The full dataset of hydropower projects in the IRENA Renewable Cost Database for the years 2000 to 2019 (Table 5.2) does not suggest that there are strong economies of scale in hydropower projects below around 450 MW in size. The number of projects is not evenly distributed, however, and could likely support different hypotheses. There are clearly economies of scale for projects above 700 MW, but these only represent about 6% of the data capacity for hydropower for the period of commissioning between 2000 and 2019. Figure 5.4 presents the distribution of total installed costs by capacity for small and large hydropower projects in the IRENA Renewable Cost Database. As the global weighted-average has risen over the two periods, it is possible to see the reason for this in the large hydropower data. 92 2019 USD/kWPDF Image | RENEWABLE POWER GENERATION COSTS IN 2019
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