As the largest clean energy source, hydropower could play a critical role in China's transition to becoming carbon neutral. With the 14th Five-year Plan (FYP), we expect hydropower capacity growth to reaccelerate, driven by: 1) substantial exploitable hydro resources of over 170GW (370GW currently); 2) potential installation boom in 2021- 22E driven by new projects; and 3) accelerated growth of pumped-storage hydropower to meet increasing energy storage demand. We forecast 17.6GW pa capacity addition in 2021-25, similar to the pre-2015 level, with accumulated capacity reaching 458GW. We believe the commissioning of major hydropower plants should contribute substantial earnings growth for the listed companies.