Funding for large-scale hydropower schemes is set to increase, with the World Bank upping its level of investment in the technology.
According to analysts at Frost & Sullivan, this is largely due to the pan-European decision to generate more energy from renewable sources, with particular emphasis of making use on mature hydropower technology.
Under the European Union's (EU's) energy directive, the community must collectively produce 20 per cent of its energy using renewable sources by 2020.
Member states must also commit to an individual target for fuel consumption and transport. As part of the directive, this means that each EU country must produce ten per cent of its energy in the transport industry from renewable sources.
Energy and power systems consultant at Frost & Sullivan Jonathan Robinson commented: "Despite a short-term decline in electricity demand, the longer-term trend is upward as hydropower provides a cost-effective, carbon-free electricity source."
The organisation is set to host an online analyst briefing presentation about the European hydropower market later this month.
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