The purpose of the article is to conduct an objective quantitative assessment of environmental, economic and social externalities created by the Ukrainian hydropower industry for society, other sectors of the economy and the environment. Research methods. As research methods, standard indicators for assessing the efficiency of the energy sector are used, namely the criterion of area efficiency of electricity generation different types, the criterion of efficiency of installed capacity in hydropower, the criteria for assessing the comparative unit cost, elements of econometric analysis and physical analogues. Research results. It is shown that the declared low cost of electricity generated in hydropower is achieved by the price of transferring the losses generated by the industry to other sectors of the economy and primarily to the agricultural sector. Losses of agricultural production are based on unused flooded areas, and practically destroyed the Dnieper as a powerful transport artery of the country. However, in general, social losses from cheap hydropower are much greater and include losses of historical identity and communication of the population of the coastal areas of the Dnieper. Scientific novelty. Based on the econometric analysis, the existence of a declining exponential trend in hydro generation volumes is shown, which is explained by the siltation of shallow water particles of the Dnieper reservoirs. The process has accelerated recently due to climate change and increasing pollutant discharges. As a result of these processes, the generation of renewable energy will soon exceed the volume of hydropower. Practical significance. On the basis of world experience and analysis of the external industry, the inefficiency of the strategy for the development of hydropower until 2026 is shown, which, in practice, is built on the principles of the era of planned economies. Tabl.: 2. Figs.: 4. Refs.: 32