Across the world, hydropower is undergoing a transformation. Aging plants are being modernised, new projects are enhancing efficiency, and investments in cutting-edge technology are securing clean energy for the future. Recent refurbishments and expansions highlight the crucial role of hydropower in supporting the global shift toward renewables.
A major investment in European hydropower is taking shape in Austria, where Energie AG Oberösterreich is embarking on a €600 million expansion of the Ebensee pumped storage power plant in Upper Austria supported by a €320 million loan from the European Investment Bank (EIB).
The Ebensee facility will function as a “green battery,” balancing fluctuations in wind and solar power generation while ensuring a stable energy supply. Financing agreements for the project were signed at EIB headquarters in Luxembourg.
This investment is the largest in Energie AG Oberösterreich’s history and marks a significant step in Upper Austria’s energy transition. An additional €80 million in EIB financing has been preliminarily approved for the Traunfall run-of-river hydropower plant, which will replace three aging plants. Final financing contracts for the Traunfall project are expected in 2025, pending Supervisory Board approval.
“Rapidly expanding renewable energy is crucial for decarbonising the economy. The hydropower plants by Energie AG Oberösterreich are another important step on the road to a climate-neutral energy supply, and will help reduce Europe’s dependence on oil and gas imports,” said EIB Vice-President Thomas Östros.
“Our strategy at Energie AG Oberösterreich has set a course for maximum carbon reduction throughout the entire company. All told, we will be investing €4 billion by 2035 to expand renewable energy and grids. We are also making major investments in green hydrogen production,” said Leonhard Schitter, Chair and CEO of Energie AG Oberösterreich.
“In the coming decades, the energy sector – including Energie AG Oberösterreich – will be influenced by high investment requirements for the process of transformation needed to develop a sustainable energy system. A key success factor in this process will be providing for future financing requirements early, with optimal borrowing and framework conditions. With the EIB, we are delighted to have a strong partner on board for this challenge,” said Andreas Kolar, CFO of Energie AG Oberösterreich.
The project aligns with REPowerEU, the European Union’s plan to reduce fossil fuel dependence. Under this initiative, the EIB can finance a larger share of project costs than the usual 30-50%. It also supports Austria’s National Energy and Climate Plan, which aims to transition all electricity generation to renewable sources by 2030.
Life extension at Rowallan
In Tasmania, Australia, the Rowallan Power Station has recently completed a major refurbishment, demonstrating the long-term viability of hydropower infrastructure.
The upgrade has improved efficiency, reliability, and flexibility, with new online monitoring systems to reduce breakdowns and upgraded control systems.
Hydro Tasmania’s Acting CEO Erin van Maanen said the 10.5MW Rowallan Power Station plays a vital role in the state’s hydropower network: “Commissioned in 1968, Rowallan Power Station is the first of eight power stations in the Mersey-Forth Scheme, which generates up to 290MW.
“Water flows from Lake Rowallan through the Scheme, generating electricity multiple times from the same water. Every drop counts and contributes to Tasmania’s enviable renewable energy capacity.”
Hydro Tasmania Site Manager Scott Tatsi led the refurbishment, which involved around 100 Hydro Tasmania staff and 60 specialist contractors.
“We completely stripped down the machine and upgraded pretty much every component, including the spiral case, physical controls and electrical control panels. Some were original parts from the 1960s,” Tatsi said.
“It’s very specialist work, so to have our apprentices working and learning alongside experienced professionals was a great collaboration. It was a very proud moment to see the station back up and running again, better than ever.”
Specialised turbine equipment was sourced from Europe, Turkey, and Romania, while Hydro Tasmania’s local Cambridge Workshop contributed to manufacturing, refurbishment, and testing.
van Maanen said the refurbishment is part of Hydro Tasmania’s broader strategy to modernise its infrastructure.
“We’re making sure our hydropower network is fit to continue providing clean energy for future generations,” she said.
Expanding Sigalda
Iceland is also ramping up its hydropower capacity, with Landsvirkjun awarding engineering firm COWI a contract for a 65MW expansion at the Sigalda Hydropower Station.
The project, which began in January 2025, is expected to be completed by late 2028.
COWI’s work includes engineering design, tender preparation, construction documentation, risk and cost analyses, as well as design reviews. The company will also coordinate the integration of the expansion with ongoing renovations at the existing power station.
The Sigalda expansion, along with the 95MW Hvammsvirkjun project, which COWI is also designing, will help meet Iceland’s growing energy demand and support key industries such as seafood, agriculture, and manufacturing.
“Once completed, the 215MW plant will add increased flexibility in energy supply and enable Landsvirkjun to better meet peak demand. By making better use of the increased water flow, Landsvirkjun is fulfilling its role of maximising the yield of the energy resources entrusted to the company, with sustainable utilisation, value creation, and efficiency as guiding principles,” said Eysteinn Einarsson, Project Manager at Landsvirkjun.
Sverrir Ó. Elefsen, Technical Lead for Hydropower at COWI Iceland, emphasised the company’s expertise in the sector. “COWI’s success in winning the contract demonstrates the level of hydropower experience of the COWI group and how combining the company’s strengths adds value for our customers. We are also using ample experience from Iceland to create hydropower solutions and secure sustainable energy in other parts of the world as well.”
The existing 150MW Sigalda Hydropower Station, operational since 1978, generates 920GWh annually. Its infrastructure includes the Sigalda Dam, the 14km2 Krókslón reservoir, and a 550m tailrace canal connecting it to the Hrauneyjafoss hydropower station.
“With the expansion of Sigalda Hydropower Station, we are helping Landsvirkjun secure sustainable power for the citizens and businesses of Iceland. In recent years, we have witnessed challenges in new power supply that have affected business growth. We are content that COWI’s experts can play a role in addressing this issue for the benefit of society at large,” said Gunnar Sverrir Gunnarsson, Managing Director of COWI Iceland.
COWI has been involved in most of Iceland’s hydropower projects since the 1970s. Iceland’s electricity production is 100% renewable, with 70% generated from hydropower and 30% from geothermal energy. The country’s hydropower plants have a total installed capacity of 2.1GW, providing baseload power for industries such as aluminium smelting, a key pillar of Iceland’s economy for the past 30 years.
New generators for Bridge River 1
Across the Atlantic, Canada is making similar strides. BC Hydro has selected ANDRITZ to supply new generators for its Bridge River 1 hydropower plant in British Columbia, marking another significant refurbishment effort aimed at increasing efficiency and reliability.
Under the contract, ANDRITZ will supply four 60 MVA generators for the Bridge River 1 hydropower plant in British Columbia. The contract value has not been disclosed.
The upgrade comes after more than 70 years of operation and is expected to improve the plant’s reliability while increasing installed generator capacity by 15%. The project aligns with British Columbia’s renewable energy targets.
Located in St’át’imc territory near the Tsal’alh community on Seton Lake, the upgrade is expected to create jobs, support economic growth, and ensure a steady supply of clean energy. ANDRITZ stated it “looks forward to working with the local First Nations communities in the execution of the project.”
BC Hydro’s decision to award the Bridge River 1 contract to ANDRITZ continues the partnership between the two organisations. The company has previously supplied two 520 MW Francis turbines and generators for BC Hydro’s Mica hydropower plant.
ANDRITZ Hydropower employs approximately 500 highly qualified and experienced persons in Canada, and is active in a number of projects in the country.
Clean energy initiative transforms Arno River
Beyond large-scale infrastructure projects, smaller initiatives are also making an impact. In Italy, the Arno Project is revitalizing historic weirs to generate clean energy while preserving cultural heritage, demonstrating how hydropower can merge past and future sustainability goals.
A new video highlights the project, a major hydropower initiative aimed at restoring and repurposing historic weirs along the Arno River. Led by Hydroalp in collaboration with Mecc Alte, the project integrates sustainability with cultural heritage preservation, providing clean energy for thousands of families.
The initiative, spearheaded by the Tuscany Region, covers a 55-kilometer stretch between Incisa and Le Signe. It involves 12 hydropower plants designed to generate 55 GWh of electricity annually – enough to power approximately 20,000 households while preventing 25,000 tons of CO2 emissions each year.
Hydroalp worked with EPC contractor PAC S.p.A. to design and supply power generation and automation systems for the plants. “Treating the 12 plants as a single project allowed us to optimize efficiency and impact,” Hydroalp stated.
Mecc Alte, a global leader in alternator production, provided power generation systems designed for reliability and efficiency. “Our vertically integrated production process ensures unmatched performance,” the company noted.
The project incorporates Kaplan turbines designed for easy maintenance and minimal environmental disruption. Restored weirs, originally built for mechanical power, now support sustainable water cycles, fish ladders, and large basins to protect aquatic biodiversity.
Three plants – Incisa, Compiobbi, and Traversa dell’Isolotto – are already operational. The remaining nine are under construction and set to be completed by 2025 through a project financing agreement with Iniziative Toscane.
The video showcases the technical expertise and collaboration behind the project. It highlights the commitment of Hydroalp, Mecc Alte, and other partners in advancing sustainable hydropower solutions.
Conclusion
From large-scale pumped storage in Austria to community-driven restoration in Italy, hydropower refurbishment is proving essential in the race toward carbon neutrality. These projects not only extend the life of existing assets but also integrate new technologies to enhance flexibility, efficiency, and environmental responsibility.
As nations push for cleaner energy, hydropower is set to remain a cornerstone of sustainable development.
