ENVIRONMENTAL ALTERNATIVE FOR SMALL HYDRO POWER PLANTS (HPPs)

ENVIRONMENTAL ALTERNATIVE FOR SMALL HYDRO POWER PLANTS (HPPs) Alternative study on the social, economic and environmental impact of small HPPs in the Albanian rivers.

EXCEUTIVE SUMMARY OF THE STUDY

ENVIRONMENTAL ALTERNATIVE FOR SMALL HYDRO POWER PLANTS (HPPs) Alternative study on the social, economic and environmental impact of small HPPs in the Albanian rivers.

Objective and purpose The study “Environmental alternative for the small HPPs1 in Albania” is initiated by the Regional Environmental Centre – REC Albania and is prepared by a team of experts from Milieukontakt International, Albania and EPER Centre. It is an alternative study brought by the environmental civil society in Albania, which analyses the rapid growth of hydro power across the country vis-a-vis its actual and expected environmental impact. The study was prepared by a team of experts during the period February – July 2015 using an overarching methodology that consists in: i) research analysis, ii) direct meetings, iii) focus group discussions, iv) questionnaires, v) and consulting sessions with civil society organizations. The study aims to bring into a single document alternative elements of hydropower development which looks not only the demand for energy but rather the negative and positive impact of this development into the social, economic and environmental sectors. The direct beneficiaries of this document are the Albanian communities, civil society organizations, local decision takers, state institutions, private sector and media. At the same time this study – a pilot one - serves the researchers and the academic community as a reference document aiming to advance the scientific research in the field of HPP environmental impact.

The methodology This study was prepared using “expert judgment” in various fields regarding the development process of hydro energy sector, against the actual and expected social and environmental impact. The experts analysed the current institutional and regulatory framework, the current situation and the energy demand trend focusing in HPPs construction, the social, economic and environmental impact by analysing positive and negative study cases from Western Balkan and domestically. A special attention was paid to the cumulative impact of HPP in Albania.

The study limitation The study brings into a single document various elements which were identified by the team of experts and other partners in several aspects of HPP development. It tries to establish an alternative database of the sector development that looks not only the energy demand but also the real negative and positive impact of this development.

The study is limited in its scope, time and data. Nevertheless, this study aims to establish a cornerstone for a more in-depth analysis of the impacts which will become more visible in the years to come. At the same time, the study does not focus into a particular river basin or respective hydropower plant; it is rather targeting the development trend of small HPPs at national level.

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Based on law no 138, dated 2.05.2013 on “Renewable Energy Sources”, article 15, small HPPs are the ones under 15 MW.

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Main findings 1. The capacity and possible potential of small HPPs development is not based in any research analysis document. There is no any official public document, which could tell the necessity and limitation of HPP development. Hence, there is a lack of clear vision, policy and national strategy regarding this sector.

2. The economic contribution of this sector, against its negative effects is almost irrelevant. The contribution of hydro energy sector due to the licensing of 501 small, medium and large HPPs is supposed to be only 2% of GDP, 2 whereas the total contribution of tourism in the national GDP is supposed to be 13.9% in 2013.3 3. The hydropower development does not take into consideration, in any case the cumulative factors of investment and effects of water accumulation for energy use in the lower part of the river until the estuary segments.

4. The planning and construction of HPPs results to be a process of low or complete lack of concerned public consultation, which has generated conflictual cases since at the start of their constructions.4 As a result of the study findings, we propose: -

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Annulment of further HPPs licensing process in the country, through an initial 3year moratorium; Reviewing the current HPPs licensing practise including the ones which have started construction and the ones which have not, aiming to discipline them and/or annul the ones which are in breach of domestic environmental legislation; Preparing a national clear and transparent policy which includes: i) a national Master Plan for all the rivers and their hydro energetic capacities identifying the “go areas” and “no go areas”, ii preparing Management Plans for all river basins, iii) and Strategic Environment Assessment studies for each basin management plan.

Detailed recommendation: In the current planning and construction situation of HPPs across the country, it is important that essential and innovative mitigations measures are taken to compensate the main impacts in the integrity of aquatic ecosystem. The mitigation policies and programmes proposed herewith this study should not be read as mere 2 Based on a scope study for including the hydropower sector in EITI report, the total contribution of energy sector in 2013 GDP was only 2% or 2.7% of the reported incomes in the state budget. Only in 2010 the contribution was 3.4% due to the heavy rain. Meanwhile, there is no statistics on the level of employment of this sector. www.albeiti.org 3 According to the World Travel and Tourisms Council the direct contribution of tourism in domestic GDP was 4.8% in 2013 and 5.5% in 2014 aiming to grow to 6.1% until 2024. Whereas, the total contribution in GDP was 13.9% in 2013 aiming to grow to 20.9% until 2024. The direct employment contribution was 4.3% or 41,000 places in 2013 and the total contribution in employment was 15.2% or 146,500 places in 2013 aiming to grow to 19.5% or 210,000 places until 2024. (WTTC, 2014) 4The conflicts between the residents and construction companies in Zerqan (Bulqizë) and Librazhd are a strong testimony of the struggle for water sharing.http://www.investigim.al/hec-et-e-librazhdit-qe-futen-nelufte-banoret-me-shtetin

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recommendations, but as crucial measures which all together will support to reduce the heavy loss of biologic diversity. These recommendations and measures should be considered and implemented throughout all the HPPs duration and functionality and in an integrated water management.

RECCOMENDATIONS Policy level

Institutional and legal level

1. The Government of Albania needs to identify a clear vision, policy and energy strategy for the country. This should be done through a clear and open communication in alignment with the environmental policy, particularly with the water policy. If, the use of water reserve is seen as a matter of national priority the government should draft a clear plan that identifies the time of using this reserve, the economic profit, the growth in % of the GDP for the coming 5-10-15 years and then the change of these resources into their initial conditions.

2. The Ministry of Energy and Industry needs to prepare the National Energy Strategy identifying a clear energetic model, its energy demand for domestic consumption until 2020-2030-2050 depending on various energy scenarios based on population increase, consumption and GDP growth, and climate change. At the same time, it needs to identify all the energy resources by analysing on scientific basis the energy generated from solar, wind, hydro, biomass and thermo energy. In support of such a strategy, it is crucial the preparation of an Integrated Water Management Resources study.

3. It is needed the preparation of a national Master Plan using all the expertise and synergy of all sectors which are water users and managers. This plan will identify in a scientific approach how much hydro energy can be produced by our rivers, at the same time protecting the main principles: water for people, water for agriculture, water for environment, and water for industry. This plan will clearly identify the “go areas” and “no go areas” for hydro power development.

4. The government needs to clarify its renewable energy resources policies considering subsidizing so that the individual and private initiatives should be promoted to exploit such energies.

5. The ecological monitoring and a database system for water streams. The identification of a special policy to preserve and manage water biologic resources is limited due to lack of proper data, particularly detailed information related to habitat relations, places of reproduction and migration paths.

Henceforth, it is needed an extensive ecological data gathering system should be implemented and linked with life cycles and water fauna demands. This data gathering system is a priority due to the fact that rational management is stopped from lack of understanding of the water ecosystem functioning.

6. The National Water Council needs to do a river basin study based on river characteristics, its ecological and morphology water flow 4

Project level

nature before setting the formula to calculate the minimal ecological flow. The sanctioning of minimal ecological flow through a council of ministers decision would avoid the river exploitation due to lack of measurement equipment and field monitoring.

7. In the spirit of Integrated Water Resource Management, it would be advisory that the hydropower licensing process should be governed by the water permit process instead of the concessionary agreement. In reality, the water permit is at the end of the whole process, even after the environmental permit despite that the hydropower is all about water.

8. Establishing an Environmental Opponence Commission, in parallel with technical opponence commission of National Agency for Natural Resources. This opponence will compile a list of all the environmental impact concerns, the correct implementation and monitoring, scientific reports and mitigating measures that will be presented by the requester.

9. The establishment of an authorised agency responsible for Renewable Energy development and its comprehensive monitoring.

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The instalment of a continuous monitoring system of the water quantity below the dam aiming the continuity of water ecological life. This demands legal changes and reviews because in Albania, the minimal ecological flow is measured and identified case by case.

11. The clarification of responsibility for mitigation measures. In order to ensure the effective mitigation of water fauna and flora impacts, the responsibilities for the needed mitigation measures needs to be clarified in the hydropower plants contracts and agreements based on the polluter pays principle. In addition, specific measures and responsibilities should be identified with individual operators using the water and the impact they have during the construction phase by stimulating ecologically friendly environment interventions.

12. The introduction of an assessment mechanism/software for HPP projects based on the following elements: environmental element, social, technical, energetic and economic. This mechanism could be referred to the Hydropower Assessment Sustainability Protocol prepared by the International Hydropower Association. This system contains the basic standards for clean Hydro Energy, referred to a set of minimal criteria such as, minimal flow, river bed management, plant design and eco-investment.

13. The introduction of eco-labels for hydro power plants presenting a policy based on merit for positive HPPs, which give priority to social and environmental responsibility and their respective awards. This would avoid negative labelling for serious businesses and would establish a milestone for the others to follow. The certifying authority should be composed of representatives from environmental groups and water users. In support of such a scheme wold be the implementation of the Green Certificates system for carbon credits benefited during the production of 5

green energy.

14. In all the cases of HPPs construction, it is recommended the construction of fish paths (technical installations depending on the species) in order to overcome the cumulative and direct impacts of the barriers. These interventions, which might be possible only in small and medium HPPs when the dam walls allow such an intervention, are important to reduce the cumulative dam cascade system impacts and should be done through the amendments of legal provisions. It is recommended a careful construction of such paths in alignment with the respective species taken into consideration for protection.

15. The regulation and bylaws linked with sediment discharge for habitat protection should be enforced.

EXCEUTIVE SUMMARY OF THE STUDY

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