The Vast Potential of Hybrid Renewable Energy Projects at Existing Hydropower Facilities
A new report from consulting firm Ember Energy reveals significant potential for developing hybrid renewable energy projects at existing hydropower facilities. Traditionally, we view renewable energy projects as standalone operations rather than complementary resources that can be combined to generate higher clean energy output. However, there is substantial potential for hybrid projects as energy companies seek to maximize and stabilize their energy production.
The Hybridization Potential in Europe
According to Ember's report published this week, 25 GW of wind and solar energy could be added to existing hydropower plants in seven EU countries to achieve hybrid operations. This "hybridization" of existing hydropower facilities could help these countries—Austria, Bulgaria, France, Italy, Portugal, Romania, and Spain—integrate 18% of new renewable energy by 2030 without requiring additional grid capacity, according to Ember.
| Parameter | Value |
|---|---|
| Potential additional capacity | 25 GW (wind and solar) |
| New renewable energy integration rate | 18% by 2030 |
| Increased utilization of existing grid connections | Nearly double |
The report indicates that hybridization could nearly double the utilization of existing grid connections, thereby reducing the need for expansion projects. Meanwhile, the hydropower plants that Ember deemed suitable for hybridization currently operate at only 19% of maximum average capacity. Integrating wind and solar sources has the potential to increase this utilization to 36% and 31%, respectively.
Legal Framework and Challenges
Currently, among the seven EU countries evaluated by Ember, only Spain and Portugal have regulations for hybrid projects, meaning that legal guidelines do not exist elsewhere. Establishing legislation for hybrid development projects could help encourage and facilitate investment in this sector.
In 2025, IEA Director Fatih Birol called hydropower "the forgotten giant of electricity." This occurred four years after the agency published a paper on hydropower, recognizing its significant potential in many countries pursuing green transitions. Hydropower is the third-largest source of electricity generation globally, after coal and natural gas. In 2024, hydropower generated approximately 4,500 terawatt-hours of electricity, or 14% of the global total—equivalent to all electricity produced worldwide by solar and wind combined.
Grid Capacity Issues
| Challenge | Impact |
|---|---|
| Grid capacity limitations | Becomes a critical bottleneck |
| Grid connection queues | Reached a global record of over 2,500 GW |
| Grid investment needs | Increasing by approximately 50% by 2030 |
| EU grid capacity gap | Minimum 120 GW by 2030 |
In addition to developing more hydropower projects to maximize the world's water resources and reduce dependence on fossil fuels, investment in hybrid projects can help maximize renewable energy output at a single location. Moreover, utilizing existing grid connections is particularly beneficial for countries with limited transmission infrastructure. Lack of grid capacity is becoming a critical bottleneck, according to the IEA.
With the rapid growth of renewable energy projects in recent years, many countries are struggling to expand and upgrade grid infrastructure at the necessary pace to connect new renewable energy capacity. Grid connection queues have reached record levels globally, with over 2,500 GW of renewable energy projects, large-load, and storage projects currently stalled due to insufficient transmission infrastructure.
The IEA states: "Meeting electricity demand by 2030 will require annual grid investment to increase by approximately 50% by 2030, from the current $400 billion, along with expanding the grid supply chain and more effectively addressing workforce challenges." Ember points out that in Europe, "a capacity gap of at least 120 GW exists between available grid capacity and expected renewable energy growth by 2030."
Future Outlook and Pilot Projects
The seven countries evaluated by Ember plan to deploy a total of 138 GW of wind and solar energy between 2026 and 2030, according to scenarios from grid operators. This represents a more than 50% increase from their 235 GW of wind and solar capacity in 2025, and is expected to be added within just five years. Meanwhile, countries like Austria and Bulgaria have no grid capacity for new electricity generation, while that of Portugal and Romania is extremely limited.
Some countries have already supported hybridization projects and may soon provide a model for others to follow, helping to reduce the immediate need for grid expansion. The Tmega wind farm in Portugal is being developed in a hybrid format with plans to connect to the same substation as the Tmega hydropower complex. Meanwhile, France's Lazer floating solar project, launched in 2023, uses floating solar technology to minimize additional land use. A total of 50,000 solar panels have been installed on the reservoir at the Lazer dam hydropower facility. This action has doubled the renewable energy capacity of the site.
Conclusion
Renewable energy developers across Europe face numerous challenges, from insufficient grid capacity to connect new projects to resident opposition to developing large-scale wind and solar projects in their backyards. Ember recommends adopting a "hybridization" approach to leverage existing transmission networks and reduce the need to find new locations for project development.
This approach not only addresses the grid capacity shortage issue but also optimizes the use of existing infrastructure, creating a more efficient solution for the clean energy transition. With hydropower remaining the largest renewable energy source globally, combining it with other renewable energy sources could be the key to achieving climate goals while ensuring grid system stability.