/2008_July_ESHA_Newsletter by Info Esha

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EUROPEAN SMALL HYDROPOWER ASSOCIATION Newsletter – July 2008

Table of contents EUROPEAN SMALL HYDROPOWER ASSOCIATION ........................................................................................................... 1 NEWS from ESHA .................................................................................................................................................................... 2 HIDROENERGIA 2008 – A great success! ........................................................................................................................... 2 SHERPA Project .................................................................................................................................................................... 2 SHAPES Project - update ...................................................................................................................................................... 2 Sustainable Energy Technology @ Work Workshop ............................................................................................................ 3 Green light for HydroAction Project ....................................................................................................................................... 3 ARE Workshop on Funding Possibilities in Developing Countries ........................................................................................ 3 New feed-in law in Germany .................................................................................................................................................. 3 A path toward implementation of new feed-in tariffs in Switzerland ...................................................................................... 4 The European Water Partnership – A coordinated approach to Water ................................................................................. 4 NEWS from the RENEWABLE ENERGY HOUSE ................................................................................................................... 4 EREC Position Papers on the Renewable Energy Framework Directive .............................................................................. 4 Renewable Energy House Extension - Inauguration ............................................................................................................ 4 European Wind Day, 15 June 2008 ....................................................................................................................................... 5 NEWS from European Institutions ......................................................................................................................................... 5 New RES-Directive: Report of the rapporteur ....................................................................................................................... 5 Water Framework Directive Update ....................................................................................................................................... 5 FP7 Information Day .............................................................................................................................................................. 6 In Brief ....................................................................................................................................................................................... 6 Tenders ..................................................................................................................................................................................... 8 Agenda ...................................................................................................................................................................................... 8

ESHA – European Small Hydropower Association Renewable Energy House, Rue d‟Arlon 63-65 B - 1040 Brussels, Belgium Tel: +32.2.546.19.45, Fax: +32.2.546.19.47, E-mail: info@esha.be, www.esha.be ESHA is founding member of EREC - European Renewable Energy Council

NEWS from ESHA HIDROENERGIA 2008 – A great success!

Hidroenergia 2008 was a great success. Over 250 leading experts from the small hydropower sector covering 36 countries gathered together in the beautiful town of Bled, Slovenia. This year‟s programme focused on two crucial issues: The role of small hydropower within the EU Energy and Climate Package and Sustainability. More than 50 presentations were given during 12 plenary and parallel sessions from distinguished speakers representing views from the industry, research institutes, the European Commission, NGOs and governments. The closing session clearly confirmed the industry‟s message that increasing the contribution of small hydropower in the Member States‟ energy mix is essential in order to comply with the 20% RES target for 2020. ESHA would like to thank all the excellent speakers and participants for an interesting and fruitful conference! We look forward to seeing you at the next Hidroenergia in 2010 in Switzerland.

In the meantime let’s continue with the development and promotion of SHP as a significant contributor of clean energy! Hidroenergia 2008 was co-organised by the European Small Hydropower Association (ESHA) and the Slovenian Small Hydropower Association (SSHA). Please see a full coverage of conference presentations, photo gallery and conclusions at www.esha.be

SHERPA Project SHERPA Project, partially funded by the EACI, will come to an end in October 2008 after two years of implementation. The project, co-ordinated by ESHA and including 8 other partners, will still provide some interesting reports and publications such as a report revising the status of SHP in the EU as far as policy and market issues are concerned. In parallel, ESHA is also developing a SHP Environmental Barometer compiling the opinions and evidence of targeted contacts on the real impact of SHP on the ecosystem. In addition, session 2A of Hidroenergia 2008 was devoted to SHERPA “SHERPA campaign: Improving SHP Image”. The session included presentations from Anne Pénalba (France-Hydro-Electricité) on the ISO 14001 certification for SHP in France, Katharina Krell (EUREC Agency) on the European Master for RES (which will soon include a hydropower section), Sara Gollessi (APER) on the application on the RES-Directive and 20% in Italy, as well as Janusz Steller (Szewalski Institute for Fluid-Flow Machinery, Poland) on the relevance of SHP for grid security. The session was chaired by ESHA‟s Project Manager Gema San Bruno and attracted some 60 participants. For additional information of the forthcoming deliverables, SHERPA project or the Hidroenergia session, please contact Gema San Bruno

SHAPES Project - update SHAPES partners met in Bled, Slovenia on 11 June 2008 to discuss the development of the project and its outcomes. SHAPES, partly funded by DG TREN under the FP6 project, focuses on strengthening the research community in order to deliver a research agenda and priorities for SHP which can then be used by the European Commission in future actions. In addition, other

interesting issues such as the initiative of specific Master education on SHP, the use of SHP for rural electrification in developing countries and the promotion of refurbishment and upgrading as good investment opportunities were covered as well. Two events are being organised under the project: A training workshop in India including the presentation of the Guide on How to Develop a SHP Plant in Developing Countries (October 2008); and a SHP Seminar for Investors on Upgrading and Refurbishment in Spain (October 2008). Both seminars are open to the public and free of charge. For further information on the SHAPES and/or workshops in October 2008, please contact Gema San Bruno

Sustainable Energy Technology @ Work Workshop The EC funded project Technology @ Work, in which ESHA was as partner, aiming at developing market opportunities for SHP in developing countries (with focus on Asia and CDMs) came to an end in April 2008. ESHA organised a workshop on CDMs and RES projects (in particular hydro) at th the Renewable Energy House in Brussels on the 28 March 2008. Participants included the International Hydropower Association and investment companies such as Carbon Market. The workshop underlined the necessity of exploiting SHP as the best source of electricity generation in developing countries and the use of CDMs as a good instrument for promoting and financing the schemes. The full workshop report and speaker presentations are available by contacting Gema San Bruno

Green light for HydroAction Project The FP7 – DG Research funded project, HydroAction will start its activities in September 2008. The main goal of this project, which will run for three years, is to develop a methodology for the low-cost design optimisation of tailor-made small hydro turbines (up to 5MW) with regard to productivity and costs. ESHA is partner within the project which is co-ordinated by NTUA in Greece. The kick-off meeting will take place in Brussels at the end of September 2008. For further information on the HydroAction project and/or ESHA’s contribution, please contact Gema San Bruno

ARE Workshop on Funding Possibilities in Developing Countries ESHA attended a workshop organised by the Alliance for Rural Electrification (ARE) on “Financing Rural Electrification in Developing Countries” on 23 April 2008 in Brussels. Within the workshop, representatives of the European Commission introduced tools and funding possibilities which the EU has developed to promote renewable energy in developing countries. The three main financial instruments presented were: 1) The Global Energy Efficiency and Renewable Energy Fund (GEEREF) to mobilise private investments in energy efficiency and renewable energy projects in developing countries and economies in transition, 2) The ACP Energy Facility which has 3 main components: access to energy, improving energy management and governance, and improving cross border cooperation in the energy sector, 3) The ENRTP‟s (Thematic Programme for Environmental and Sustainable Management of Natural Resources including Energy) energy component is to “enhance the role of energy” as a means to create income generation for the poor and increase it for other energy end users. For further information on the ARE Workshop or EU funding please contact Lauha Fried.

New feed-in law in Germany On 6 June 2008, the German Parliament voted for a new law on the support for renewables power production. The decision was based on the Renewable Energy Sources Act (EEG) progress report from November 2007 and the draft legislation from December 2007, both decided by the federal government. The payment provisions in the future EEG for the year 2009 and the tariffs will be effective from January 2009. As far as hydropower is concerned, the fees and degressions are split

into facilities of up to 5MW (new), of up to 5MW (modernised/upgraded), renewal of facilities of over 5MW and degression over 5MW. In comparison to 2007, there is an increase in fees which has been justified by the reduction in remuneration period from 30 to 20 years.

For further information, please download the new tariffs for Hydropower and the 2009 EGG Payment Provisions documents and the reports on Prospects for Renewable-Generated Electricity and the Methodological approaches for electricity generation cost calculations as well as on how the EEG works. (Source: Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany)

A path toward implementation of new feed-in tariffs in Switzerland In March 2008, the Federal Department of Ecology, Energy, Transport and Communication published the new Swiss Energy Federal Electricity Supply Act and the revised Energy Ordinances which contains feed-in tariffs for all sources of renewable energy linked to their typical generation cost. The new tariffs will come into force on 1 January 2009 and are applicable to new power plants, power plants with over 50% investment in relation to the cost of a new plant and power plants with 20% production increase. The only deficiency appears to be that power plants commissioned before 2006 are not eligible to receive funding. For the full article, please click here, or contact ITECO Engineering Ltd’s Hanspeter Leutwiler

The European Water Partnership – A coordinated approach to Water The European Water Partnership was set up in early 2006 as an independent, non-profit organization helping to coordinate initiatives and activities in international water issues and undertaking worldwide promotion of European expertise related to water. In 2008, three major activities dominate the EWP‟s agenda: the European Regional Coordination for the fifth World Water Forum, work on Water and Energy and the EWP-programme Aquawareness, which supports the shift of mindset in Europe towards a water-saving and water efficient culture. The latest meeting of the European Regional Coordination took place on 8-9 July in Zaragoza, Spain. For more information on these programmes, and on the latest meeting, please visit www.ewp.eu

NEWS from the RENEWABLE ENERGY HOUSE EREC Position Papers on the Renewable Energy Framework Directive EREC recently released three position papers on the Renewable Energy Framework Directive. The position papers on the Guarantees of Origin and Flexibility of Member States and on the Turmes report of the Directive were published on 28 May 2008 while the Position Paper on Biofuels was released on 20 June 2008. All three position papers are available on the EREC website www.erec.org

For further information, please contact Oliver Schaefer, EREC Policy Director

Renewable Energy House Extension - Inauguration The Inauguration of the extension of Renewable Energy House (REH) took place two years after its initial inauguration on 18 June 2008 in the presence of HRH Prince Laurent and HRH Princess Claire of Belgium, Prof. Arthouros Zervos, EREC President, and Bruno Venanzi, Managing Director of Lampiris, green energy supplier to the REH. The event gathered over 100 participants from the EU Institutions, national renewable energy associations, and the industry. Participants were invited

to visit the premises which together supply the REH with 100% renewable energy for heating and cooling and electrical needs. For further information on the REH and guided tours, please visit the REH website.

European Wind Day, 15 June 2008 The Second European Wind Day took place across European regions and cities on 15 June 2008. The European Wind Energy Association (EWEA), organiser of the event, believes that European citizens should have the chance to make their voices heard in today‟s energy game, and after last year‟s huge success, European Wind Day 2008 organised a vast range of events that took place simultaneously in various countries. This enabled a huge public to have the chance to learn more about wind energy, and support one of the solutions for the looming climate and energy crisis. For further information on the European Wind Day activities in different countries, please consult www.windday.eu

NEWS from European Institutions New RES-Directive: Report of the rapporteur The European Parliament‟s rapporteur on the new RES Directive, MEP Claude Turmes (Green), has presented his report with amendments. The key points of his report with amendments are: 1) Binding interim targets and introduction of direct penalties instead of indicative targets. Level of penalties should provide incentives for RES investment. 2) Flexibility Mechanisms for Member States: On Guarantees of Origins, Mr. Turmes developed a system which separates the GoOs into the original disclosure system as well as implementing penalties to those failing to comply with their targets. 3) Removal of administrative barriers. 4) Public and private financing for RES: The rapporteur wants to increase the use of Structural Funds in the promotion of renewable energies. 5) Developing infrastructures and priority grid access for a better sharing of costs related to grid infrastructure and grid adaptation to renewables. 6) In addition to hydropower, the normalisation rule was also installed for wind. The Turmes report is likely to be voted upon by the European Parliament‟s Industry (ITRE) Committee in early September 2008. For further information concerning the Directive, please contact Lauha Fried

Water Framework Directive Update Finding a balance between the WFD and the RES Directive and reconciling energy and environmental targets is one of the most critical questions in the development of SHP. In order to closely follow the current state of play, ESHA actively attends a number of WFD Working Groups such as WG on Ecological Status, WG on Floods, WG on Exemptions to Environmental objectives, Strategic Coordination Group, and Climate Change and Water. ESHA and its members have also decided to re-activate the WFD Working Group.

Furthermore, a Water Directors meeting took place from 16-17 June 2008 in Slovenia where some open points were raised regarding the issue of disproportionate costs included in several policy papers related to environmental objectives and exemptions. Another important issue on the table was on how to take climate change into account in the First River Basin Management Plans. For additional information on the Discussion Paper on Climate Change and/or on the Discussion Paper on disproportionate cost, please contact Lauha Fried.

FP7 Information Day On 20 June 2008, the European Commission (DG TREN) held an information day presenting the 2008 Call for Proposals under the FP7 programme. This call is open until October 2008 and the total amount available for RES-electricity generation is 42€M. Among the areas open for this call as far as RES are concerned, only Ocean and/or Electricity Storage projects could be of interest to SHP. For further information on the call, presentations held during the information day or opportunities for proposals, please contact Gema San Bruno

In Brief Somerset, Devon and Dorset unite for micro-hydro Mill owners across the South West of the UK shared their experiences of restoring mills to be power producing sites at the Three Counties Micro-Hydro Conference which was hosted by Somerset County Council with Devon and Dorset County Councils. With a number of sites up and running across the three counties, the South West has already had some great success stories, as well as potential for further growth with many weirs and historic mill sites. The conference was organised with the aim of creating a „Three Counties Federation‟, offering resources and support for mill-owners and the micro-hydro industry. (www.microhydropower.net) EOS enters the French hydro market Swiss utility EOS announced in early April the acquisition of a 35.5 per cent stake in French mini hydro producer, Société d‟Etudes et de Réalisations Hydroelectriques (SERHY). SERHY produces 51.7 GWh/year from operating assets in the Pyrenees and Alps. (Hydropower & Dams, Issue 2, 2008) Rehabilitation of two Czech SHPs Czech consultant and engineering company Hydropol Project & Management, has been awarded a contract for the rehabilitation of two small hydro plants owned by the Czech power utility ČEZ. Both plants are low head run-of-river schemes and the plants‟ output is expected to increase from 1.92 to 3.8 MW. The projected annual production after the refurbishment scheme will reach almost 14 GWh. (Hydropower & Dams, Issue 2, 2008) Norway utility brings 6.2 MW Palsbu on line Norway‟s 6.2 MW Palsbu hydroelectric project is expected to generate 22 GWh of electricity annually at Palsbu Dam on Palsbufjorden above Tunhovd Fjord. Construction began in February 2006 and the utility Statkraft put the plant on line in October 2007. Palsbu is the first hydro project in Norway to use an environmentally adapted turbine and hydraulic oils, Statkraft stated. (HRW, Volume 16-2) Small hydro refurbishments completed in Finland Mavel AS has completed two small hydro refurbishment schemes in Finland. The company was initially contracted in October 2006 for the supply of the projects by Finnish based Vaasa Engineering Ltd. The Alasorsakoski and Ylasorsakoski hydro plants are owned by Finnish company Savon Voima Oy. (Hydropower & Dams, Issue 2, 2008) Michaniki receives hydro licence The Greek construction group Michaniki has received a generation licence for its planned Karpenisiotis hydropower station from the national regulatory authority RAE. The project, to be constructed in Evritania prefecture in central Greece, will have an installed capacity of 5.4 MW. The plant is projected to produce average annual output of 22 GWh. (Hydropower & Dams, Issue 2, 2008) Hidroelectrica sells more small hydro plants Romania‟s State controlled hydropower producer Hidroelectrica sold 16 small hydropower projects with a combined installed capacity of 5.83 MW to three companies, in an auction held in early

March 2008. Wienstrom of Austria acquired 5 plants in the Ilfov river basin in Dambovita County, Romenergo of Romania acquired the Suha Mare river basin group and a local consortium purchased the Fenes river basin group in Mures County. Hidroelectrica said it plans to complete the sale of its remaining 86 small hydro projects by the end of 2008. (Hydropower & Dams, Issue 2, 2008) Minnesota flour mill studies micro-hydro potential The Pickwick Mill in Pickwick, Minn., received a US$5.000 grant from the Clean Energy Resource Team of Southeast Minnesota to conduct a feasibility and cost study on the installation of micro-hydropower turbines. The electrical power generated would be used at the mill with any extra kW sent back to the local utility‟s grid for distribution to clean energy buyers. It is believed that the turbines could generate a maximum electrical output of about 90,000 kWh annually depending on water flow rate and how far the water drops to the turbine. (www.microhydropower.net) IADB highlights small hydro potential fro Latin America The Inter-American Development Bank (IADB) has highlighted the growing prospects of small hydro amongst renewable energy projects in Latin America over the next few decades. IADB said that hydropower as a whole was expected to increase its share of the energy portfolio from 10% to 15% over the next 10 years. (www.waterpowermagazine.com) Grant approved in Colombia The Inter-American Development Bank approved a US$960,000 grant to strengthen electricity service in non-grid-connected areas of Colombia. The project is to be coordinated with Instituto de Planificación de Soluciones Energéticas, which is charged with developing energy projects in non-interconnected zones. (HRW, Volume 16-2) Feasibility study of 4 hydro projects in Ecuador Ecuador‟s power and renewable energy ministry signed a contract with the Universidad de Cuenca to study the feasibility of four hydro projects totalling 29.3 MW. (HRW, Volume 16-2) Brazilian utility transfers 159 MW to renewables unit Brazilian utility Energias do Brasil (EDB) assigned a portfolio of 159 MW in small hydropower projects to Enernova, its newly created developer of renewable energy projects. EDB is transferring to Enernova 13 small hydropower projects totalling 159 MW in Mato Grosso do Sul and Espirito Santo states. (HRW, Volume 16-2) Development of mini hydro on Orange River The Presidents of South Africa and Namibia have agreed to study joint development of mini-hydropower plants on the Orange River, which forms the countries‟ common border. (HRW, Volume 16-2) Melbourne Water goes for mini hydro Hydro Tasmania Consulting of Australia has been awarded a contract to supply and construct a complex of six mini hydro plants for Melbourne Water. The project will result in a generating capacity of 7 MW overall from the six sites, producing up to 40 GWh/year, which is the equivalent to electricity for around 5000 homes. (Hydropower & Dams, Issue 2, 2008) Hydro Tasmania looks to asset spend plan to help counter drought crisis Hydro Tasmania is planning a series of minihydro plants, reservoir enlargements and transfer schemes along with other power station spend to help improve its renewables output as the utility faces ongoing drought conditions. Over the next 12 years, Hydro Tasmania plans to develop an additional 1,000 GWh/year of output capability from its existing system, which has a potential output of 9,000 GWh/year. (www.waterpowermagazine.com) Micro-hydro units in the Himalayas Ladakh Ecological Development Group (LEDeG) has installed 57 micro-hydro units in the remote and desert area of Ladakh, significantly improving living standards by reducing drudgery. LEDeG also promotes decentralised water supply and has installed 63 hydraulic ram pumps which have considerably increased the income of the marginalised farmers over the past 30 years. (Sustainable Energy News, N° 60 – April 2008) Study recommends funding Afghan small hydro projects A consultant‟s report recommends the Asian Development Bank provide US$48.26 million toward the cost of rehabilitating or developing three small hydropower projects in rural areas of Afghanistan. Engconsult Ltd. of Canada and ECL Consultants Ltd. of Bangladesh assessed a proposed hydropower development programme intended to invest in small to medium projects for underserved and off-grid areas of Afghanistan. The report recommends proceeding with rehabilitation of one project and the construction of two new projects for a total of 21.5 MW at the cost of US$70.3 million. (HRW, Volume 16-2)

Tenders No tenders at present.

Agenda September 2008 th

1-4 September: 13 World Water Congress, Montpellier, France. For further information please email wwc2008@msem.univ-montp2.fr or visit www.worldwatercongress2008.org

1-8 September: Hydropower & the Environment – Management of Environmental and Social Aspects of Hydropower Development, Trondheim, Norway. For further information, please visit www.ich.no

8-12 September: 8 International Hydroscience and Engineering, Nagoya, Japan. For further information, please call +81 52789 4625 or visit www.civil.nagoya-u-ac.jp

October 2008 -

13 – 19 October: 20 International Congress on Irrigation and Drainage, Lahore, Pakistan. For further information, please email icid@icid2008.org or visit www.icid2008.org

November 2008 -

3-7 November: Hydropower Financing & Project Economy – Meeting the Challenges of Financing Hydropower Projects in Liberalised Markets, Oslo, Norway. For further information, please visit www.ich.no

26-28 November: International Seminar on Hydropower Plants, Vienna, Austria. For further information, please email eduard.doujak@tuwien.ac.at or visit www.viennahydro.com

DISCLAIMER: ESHA prepares this Newsletter to enhance access to information about news, policies and events concerning the small hydropower sector and renewable energy in general. Our goal is to keep this information timely and accurate and therefore, ESHA compiles this information from different available and reliable sources and selects Newsletter content in the best efficient way it knows. If errors are brought to our attention, we will try to correct them. However, ESHA accepts no responsibility or liability whatsoever with regard to the information on this paper. This information is of a general nature, not necessarily complete or accurate and sometimes linked to external sites over which ESHA has no control and for which the ESHA assumes no responsibility.