The Asia-Pacific region leads the global hydro power market with a total installed capacity of 295,764 MW by the end of 2008. The region has witnessed tremendous growth in the hydro electric sector over the years, principally because of strong growth in the leading hydro power nations such as China, Japan, India and Australia. These countries are cited as the most attractive destination for hydropower generation principally because of their abundant water resources.

China is an undisputed leader in the hydropower sector with nearly 1/6 of the world’s hydroelectric resources. The country has immense growth potential in the hydroelectric sector. Given that the country is dependent on fossil fuels at present for meeting the majority of its electricity needs, a shift towards renewable power sources has become mandatory. As a result, China is making efforts to exploit the vast available hydro power potential in the country.