Draft indicative list of potential projects

INDICATIVE LIST OF POTENTIAL PROJECTS FOR A SUSTAINABLE DEVELOPMENT OF HYDROPOWER IN THE WESTERN BALKANS The Western Balkans region has a strong tradition of hydropower development and hydropower already contributes 49% of the six countries’ electricity production. To meet the growing energy demands, while continuing to decommission aging and polluting fossil-fuel generation capacity, this role could be strengthened, as part of the larger renewable energy mix, observing essential sustainability principles. HYDROPOWER GENERATION: REHABILITATION AND DEVELOPMENT With 90% of the region's hydropower capacity constructed before 1990 (and some 10% before 1955), infrastructures are aging and at risk after years of under-investment. Rehabilitating and increasing the efficiency of existing hydropower plants in combination with ecological restoration measures shall be the first, immediate priority for investments, to safeguard the present contribution that hydropower makes to the region’s energy mix and to upgrade the existing capacity. However, considering the limited capacity increase that can be achieved by upgrading hydropower plants during rehabilitation, new generation plants may be developed in addition across the region. However, not only most of the prime hydropower sites in the region have already been taken, but due to the necessity to preserve the environment, the changes in climate patterns and available water resources, as well as the challenges for greenfield projects to be financially viable in the current market, only a limited number of projects are likely to materialise. SUSTAINABLE HYDROPOWER DEVELOPMENT The selection of new generation projects shall take into consideration the requirements necessary for a sustainable development of hydropower in the Western Balkans.  Integrated water resources management – Considering the interactions upstream and downstream and the cumulative effect of existing infrastructures and prospective projects.  Climate change – Considering the changes to hydrological yield forecasts and the various climate adaptation scenarios.  Environmental impacts – Assessing the impacts on the water resources, the ecological status of the rivers and the associated ecosystems and biodiversity. Environmental mitigation measures like fish migration aids and ecological flows need to be ensured. Some areas are of particularly high nature and biodiversity value and vulnerability, and not all impacts can be mitigated. Such zones should be preserved, in particular by excluding them from hydropower development. The on-going process of designating Emerald and Natura 2000 sites will contribute to identify and preserve such areas.  Transboundary considerations – Including all riparian countries' interests.  Social impacts and preserving cultural heritage – Assessing the impacts on human communities, such as possible displacements, loss in economic activities due to land expropriation, etc. HIGH STANDARDS FOR HYDROPOWER DESIGN AND DEVELOPMENT Rehabilitation and greenfield projects must be planned, designed and developed to the highest standards following EU legislation's requirements. Strategic environmental assessment should be carried out for plans and programmes for energy which are likely to have significant environmental effects. This includes those related to the development of hydropower, for which we also need to consider cascade level. For projects likely to have significant effects on the environment, Environmental Impact Assessments must be systematically undertaken and quality checked when developing greenfield projects as well as for rehabilitating existing infrastructures. The assessments could identify a wide range of measures to be introduced for environmental mitigation and ecological restoration. The Environmental Impact Assessments should not only consider impacts at the scale of the site of the project but also at the scale of the river, to include potential consequences upstream and downstream. Cumulative impacts of other activities should also be assessed. Projects located in designated protected areas, or areas of high nature and biodiversity value and vulnerability shall be assessed with a higher scrutiny in compliance with the provisions of the EU Habitats and Birds Directives. Projects which are expected to cause deterioration to water bodies should only go ahead if compliant with the provisions of the Water Framework Directive. 1

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