Hydro-dependent power systems have had a stark reminder of climate risk: dry seasons that cut reservoir levels have forced load-shedding and emergency imports in several emerging markets, and planners are responding by diversifying firm capacity.

The playbook combines fast-to-build solar with storage to cover daytime and evening demand, gas or dual-fuel plants for extended dry periods, expanded regional trade, and, in some cases, pumped storage to make better use of variable inflows.

Where the pressure is greatest

Southern and East African systems built around large river basins, and Southeast Asian countries reliant on hydro imports. Our Zambia and Cambodia and Laos guides set out the exposure.

Implications

Storage and solar tenders accelerate; interconnectors gain priority; and hydro operators invest in forecasting, reservoir management and plant efficiency. Suppliers should expect demand across all four. See our power generation and storage sections.

Background: when the reservoir runs low

Hydropower supplies the majority of electricity in Zambia, Ethiopia, Mozambique, Laos, Nepal, and much of Latin America, and a large share in Kenya, Ghana, Vietnam and Brazil. It is cheap, flexible and low-carbon — until the rains fail. Successive droughts on the Zambezi, in East Africa and in Southeast Asia have cut output at Kariba, Cahora Bassa and Mekong-basin plants for months at a time, forcing load-shedding, emergency diesel and costly imports. The IEA’s hydropower analysis, the International Hydropower Association and the World Bank all now treat climate variability as a core planning risk rather than an exception.

Where the pressure is greatest, and how utilities are responding

• Southern Africa: Zambia and Zimbabwe are procuring solar at scale, adding batteries and strengthening SAPP imports.
• East Africa: Kenya leans on geothermal and Ethiopia on new hydro plus exports; both are adding wind and solar.
• Mekong basin: Laos, Cambodia and Vietnam are diversifying with solar, floating solar on reservoirs and gas.
• Planning tools: utilities are commissioning hydrological risk studies and building seasonal storage and pumped hydro to hedge variability.

What it means for suppliers to utilities and OEMs

Drought diversification is a procurement pipeline in itself: utility-scale solar and wind, battery storage, gas or dual-fuel firming plants, transmission for imports, and floating solar on reservoirs. It also drives upgrades to existing hydro — turbine refurbishment, efficiency improvements, dam safety instrumentation and forecasting systems — that keep output up when water is scarce. Suppliers should track diversification plans on our power generation and storage pages and note that hydro utilities remain the buyers for much of this equipment.

Quick answers

Which countries are most exposed to hydro drought risk?

Countries where hydro exceeds half of supply — Zambia, Zimbabwe, Mozambique, Ethiopia, Uganda, Laos, Nepal, Bhutan and several in Latin America — face the greatest exposure.

How are utilities reducing hydro drought risk?

By adding solar, wind, storage and thermal firming capacity, strengthening cross-border imports and improving hydrological forecasting and reservoir management.

Sources and further reading

• IEA — Hydropower — special report and outlook
• International Hydropower Association — sector data and climate resilience guidance
• World Bank — Hydropower — financing and resilience programmes
• Southern African Power Pool — regional trading during drought
• EnergiTech Media — Energy infrastructure in Zambia — country guide

This article was researched and written by the EnergiTech Media editorial team and last reviewed in August 2026. We update country and sector guides as tenders, plans and regulations change. Spotted something out of date? Email support@energitechmedia.com.