Hydropower reservoirs are a significant source of low‑cost electricity in many regions. When reservoir levels are high, hydropower plants can produce more electricity and displace costly fossil generation. Low water levels, often due to droughts or seasonal factors, reduce hydro output and force grids to rely on more expensive fuels, pushing rates higher.
For additional context on electricity supply and price dynamics, see our Installed Reserve Margin indicator and the U.S. Bureau of Reclamation’s hydropower reservoir data.

Hydropower Reservoir Levels
267 BkWh
Direction: Up
Hydropower generation is expected to increase 3% in 2026 to about 267 BkWh as reservoirs recover after dry summers. The EIA projects a similar 3% increase in 2027【721935189053185†L320-L333】.
