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Many places are dealing with the problem of water scarcity, especially in the summer months. This occurs mostly in the dry areas with hot climates that are exposed to intensive solar insolation which are the main driver for the evaporation of water. Some companies that are in charge of water service, and are operating open water reservoirs, have developed a solution to cover the water with floating balls to limit the solar insolation and to mitigate the evaporation of water. Another good approach is using floating solar panels for the same cause, which will provide an additional power source. It can enhance the productivity of hydropower plants with reservoirs. An additional benefit of the solution is the amount of the available water surfaces for placing the solar panels, instead of potentially useful areas for other purposes (agriculture, buildings ...). This paper reviews the current development of the technology, potentials, and best practices. It shows that this technology is feasible and can compete with other power sources, considering the cheapest LCOE being 46 USD/MWh for a 50 MW power plant in Uttar Pradesh, India. [Display omitted] • FPV is feasible, with LCOE as low as 46 USD/MWh for a 50 MW power plant in Uttar Pradesh, India. • FPV improves water retention in open reservoirs while improving efficiency of PV panels. • Asian countries have recognized potentials of FPV and have the largest plants (150 MW construction in Huainan, China). • Developers from EU have key knowledge for development of FPV projects, why their development should be supported there. [ABSTRACT FROM AUTHOR]