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Theroleofhydropower inselectedSouth-EasternEuropeancountries
Theroleofhydropower inselectedSouth-EasternEuropeancountriesCommissionedbyEuroNaturFoundationandRiverWatch–Societyfortheprotectionofrivers29October2018Author:Dr.JürgenNeubarth,e3consultGmbHwww.e3-consult.atThispublicationiscommissionedbyEuroNaturFoundation(www.euronatur.org)andRiverWatch–Soci-etyfortheProtectionofrivers(www.riverwatch.eu)aspartofthe"SavetheBlueHeartofEurope"cam-paign(www.balkanrivers.net).
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-1-
Tableofcontent
Executivesummary...................................................................................................................................2
1 Introduction..........................................................................................................................................4
2 Existingelectricitygenerationsystem........................................................................................52.1 SEEregionataglance...............................................................................................................................52.2 Countryprofiles..........................................................................................................................................72.2.1 Albania.........................................................................................................................................................................72.2.2 BosniaandHerzegovina.......................................................................................................................................82.2.3 Bulgaria........................................................................................................................................................................92.2.4 TheformerYugoslavRepublicofMacedonia...........................................................................................102.2.5 Greece........................................................................................................................................................................112.2.6 Montenegro.............................................................................................................................................................122.2.7 Serbia.........................................................................................................................................................................13
3 Perspectivesforfurtherdevelopmentofhydropower.......................................................143.1 Technicalandeconomichydropowerpotentials..........................................................................143.2 2020NREAPtargets................................................................................................................................173.3 Hydropowerprojectpipeline..............................................................................................................203.4 Aglanceatsmallhydropower.............................................................................................................23
4 FeasibilityofhydropowerprojectsaccordingtoEuroNatur/RiverWatchcriteria...274.1 Ecologicalclassificationofhydropowerprojects..........................................................................274.2 Effectsonoverallhydropowerdevelopment.................................................................................284.3 Alternativerenewableenergysources.............................................................................................30
5 Conclusion..........................................................................................................................................36
6 References..........................................................................................................................................37
7 Abbreviations....................................................................................................................................39
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-2-
Executivesummary
TheSEEregionhasthe largestremainingunexploit-
ed hydropower potential in Europe. However, the
developmentofuntappedhydropowerpotentialsin
South-Eastern European countries has caused
growingenvironmentalconcerns,sincemanyofthe
effectedriverstretchesareconsideredtobeofhigh
ecological value. Nevertheless, the number of
awardedconcessionshasbeenrapidlyincreasingin
the last few years and today a few thousand new
hydropowerplantsareinthepipelineinthewhole
SEEregion.On theotherhanddespiteapromising
potential alternative renewable energy sources
haveyetexperiencedonlyinafewSEEcountriesan
emergingtrend,i.e.mostSEEcountriesputthefocus
of its energypolicy still onhydropower rather than
on wind, solar and biomass. In this context, Eu-
roNatur and RiverWatch commissioned e3 consult
with a study on the future role of hydropower in
sevenselectedSEEcountries,namelyAlbania,Bos-
niaandHerzegovina,Bulgaria,theFormerYugoslav
Republic of Macedonia, Greece, Montenegro, and
Serbia.The resultsof the studyare summarized in
thefollowing:
Hydropower serves 21% of the electricity de-
mandintheregion
ThesevenSEEcountriescurrentlyhaveaninstalled
hydropowercapacityof12.5GWwithanelectricity
generationofabout34TWh/a.Theaverageshareof
hydropowerintheyearlyelectricityconsumptionis
about21%.However,duetofluctuatinghydropow-
er supply the contribution of hydropower to the
demand varied between 16 and 25% in the years
2011-2017.Onacountryleveltheaverageshareof
hydropower in demand ranged between 10% in
Greeceand88%inAlbania.
One thirdof technical andhalf of economichy-
dropowerpotentialyetexploited
Theremainingavailablehydropowerpotentialsadd
up to total economic potential of 12.8GW
(37TWh/a) and a total technical potential of
25.2GW (65TWh/a), respectively. The countries
with the highest remaining potentials are Albania,
BosniaandHerzegovinaandGreece.
NREAP targets for hydropowerwillmost likely
bemissed
Between2010and2017about1.7GWofadditional
hydropower capacities were put into operation,
howeveranother1.4GWwouldberequiredtomeet
thecombined2020NREAPtargets forhydropower
ofthesevenSEEcountries.
Identified projects would double annual elec-
tricityoutputfromhydropower
EuroNaturandRiverWatch identifiedalmost2,400
hydropowerprojectswithanestimatedtotalcapac-
ity of 12.2GW and an annual generation of some
36TWh/ainthesevencountries.About92%ofthe
projectsaresmallhydropowerplantsbelow10MW
and two third are even below 1MW. With about
840projectsmorethanonethirdoftheprojectsare
located inSerbia,howeveralmost90%of thispro-
jects are below 1MW. From an economic perspec-
tivethestrongfocusofmostcountriesonverysmall
hydropower is not immediately apparent because
very small hydropower projects are typically less
economicallyattractive.
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-3-
8%oftheprojectsecologicallyfeasibleaccord-
ingtoEuroNaturandRiverWatchclassification
EuroNatur and RiverWatch applied an ecological
evaluationtothehydropowerprojectstoclassifythe
feasibility of the projects from EuroNatur/River-
Watch perspective. As a result 92% of the projects
and96%of the totalproject capacity, respectively,
are located in exclusion zones as defined by Eu-
roNatur/RiverWatch.
Potentialsofwind,solarPVandbiomassexceed
remaininghydropowerpotentialsbyfar
In total, the seven countries covered in this study
have an economic potential of wind, solar PV and
biomassofabout240TWh/a.Thispotentialdoesnot
only significantly exceed the remaining economic
hydropowerpotentialof37TWh/abutalsoexceeds
thecurrentelectricitydemandofallcountriesthatis
notyetcoveredbyrenewablebyafactorof2.How-
ever,thepromisingpotentialsofwind,solarPVand
biomass have yet not been reflected in the energy
policyofmostofthesevenSEEcountries.OnlyBul-
garia and especially Greece have already experi-
enced an emerging trend towards alternative re-
newableenergysources.
Wind, solarPVandbiomassdiversify thecoun-
try’srenewableportfolios
Even if hydropower is still the most economically
viable renewable energy technology in the SEE re-
gion wind onshore and solar PV have already
reached a competitive cost level. Hence, alternative
renewable energy sources could in principle substi-
tute ecologically sensitive hydropower projects
without major economic disadvantages. Further-
more, agreater considerationofwind, solarPVand
biomass in the country’s renewable and generation
portfolios, respectively, would better diversify the
portfolios and make them less vulnerable to una-
voidable seasonal and yearly fluctuations of elec-
tricity generation from hydropower and potential
impactsofclimatechangeontheavailabilityofhy-
dropowerplants,respectively.
Anoverallassessmentofhydropowerprojectsis
recommended
However, the assessment of hydropower projects
shouldnotonlybebasedonecologicalbut alsoon
energy economic related aspects to consider the
interaction of hydropower projects with the elec-
tricitysystem.Forexample,hydropowerplantsthat
are combinedwitha reservoir canprovide flexible
generationandancillaryservices.Itisexpectedthat
flexibility inapowersystemwillconsiderablygain
importance in the future, if the share of volatile
generationfromwindandsolarincreases.Hence,a
more differentiated classification of hydropower
projects isrecommendedthatwouldallowatrans-
parentandequalconsiderationofenergyeconomic
andenvironmentalaspect.
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-4-
1 Introduction
In contrast to other European regions the South-
EasternEuropean(SEE)countriesandespeciallythe
WesternBalkansstillrepresentsasignificantportion
ofuntappedhydropowerpotential[1].Hence,efforts
tofurtherexploithydropowerpotentialsinSEEhave
been strengthen by project developers and govern-
ments,sincetheexpansionofhydropowerisconsid-
ered to serve the expected growing demand and to
replaceoldandinefficientthermalpowerplantsbut
also todeliverasubstantialcontribution for the im-
plementationofrenewableenergytargets.Asacon-
sequence, the number of awarded concessions has
beenrapidlyincreasinginthelastthefewyearsand
todayabout2,800newhydropowerplantsareinthe
pipelineinthewholeSEEregion.[2]
However, the expansion of hydropower has caused
increasing environmental concerns because the in-
dustries’ appetite for new hydropower capacities
also affects river stretches with a high ecological
valueandhence,potentiallythreatenstheecosystem
of the rivers in terms of e.g. hydromorphology and
biodiversity.Forexample,arecentlypublishedstudy
by Fluvius concluded that 37% of the planned pro-
jects in the SEE region are in protected areas. [3]
Consequently, the conflicting interests between en-
ergy industryandnatureconversationneeds inSEE
havealreadybeenputontheagendaoftheEuropean
Union.For example, theEU-fundedprojectRegional
Strategy for Sustainable Hydropower in theWestern
Balkans [4] aims to define how the region’s hydro-
powerpotentialcouldbedevelopedinawaythate.g.
energy generation, flood protection and ecological
concernsarewellbalanced.However,thefocusofthe
projectwasputona“fullexploitationofhydropower
potentialsinasustainableway”ratherthantheques-
tionifa(untouched)riverstretchshouldbeexcluded
for any use of hydropower from an environmental
perspective. Additionally, the assessments mainly
considered largehydropowerprojectswith an elec-
trical output above 10MW and did not include the
large amount of small hydropower projects in the
SEE region.Against thisbackgrounde3 consultwas
commissioned by EuroNatur/RiverWatch to carry
out a study on the future role of hydropower that
includesaprojectspecificevaluationoftheecological
feasibility of hydropower projects in seven selected
SEEcountries(cf.Fig.1).
Fig.1:South-EasternEuropeancountriescov-eredinthisstudy
*TheformerYugoslavRepublicofMacedonia
Basedonanoverviewoftheexistinggenerationmix
this study analyses the overall perspectives of hy-
dropowerinthecoveredSEEcountries.Furthermore
thestudyprovidesanassessmentoftheimpactofthe
ecological classification of hydropower projects by
EuroNatur/RiverWatch on the further development
ofhydropowerinthesevenSEEcountriesandgives
anoverviewaboutthepotentialsofotherrenewable
technologies to verify if ecologically unattractive
projects could in principle be substituted by wind,
solarand/orbiomass.
BulgariaFYRMace-donia*
BosniaandHerzegovina Serbia
Albania
Greece
Monte-negro
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-5-
2 Existingelectricitygenerationsystem
This chapter contains a brief summaryof the elec-
tricity generation systems of the seven SEE coun-
triescoveredinthisreport, i.e.Albania,Bosniaand
Herzegovina,Bulgaria,theFormerYugoslavRepub-
lic of Macedonia (FYRMacedonia), Greece, Monte-
negro,andSerbia.Afterahighleveloverviewofthe
maincharacteristicsofallsevencountriesindividu-
alcountryprofilesprovideamoredetailedpicture.
of the country specific generation and demand
structureintheyears2011to2017.
Inordertohaveaconsistentdatabasisallpresent-
eddataare– if available– taken fromvariousEN-
TSO-E publications [5] even if ENTSO-E data can
differ from other data sources. However, data in-
consistency amongst different sources is a general
issueandnotonlyrelatedtoSEEcountries.
2.1 SEEregionataglanceWithaninstalledgenerationcapacityof48GWand
an annual electricity consumption of 156TWh Al-
bania, Bosnia-Herzegovina, Bulgaria, the Former
YugoslavRepublic ofMacedonia, Greece,Montene-
gro and Serbia represent about 4.2% of the total
installedcapacity(1,150GW)aswellthetotalelec-
tricity consumption (3,700TWh) in the ENTSO-E
systemin2017.Incomparison,theinstalledhydro-
power capacity (including pumped storage) in the
seven countries of 15GW account for 6.4% of the
total ENTSO-E1 hydropower capacity of 235GW.
However,thenationalgenerationmixdifferswidely
betweentheindividualcountriesasshowninFig.2.
The share of hydropower capacities (excl. pumped
storage)inthenationalpowerplantportfolioshasa
wide range between 95% in Albania and 15% in
Greece. Besides hydropower the main domestic
sourceofelectricitygenerationintheregioniscoal
(mainly lignite) – only Greece and Bulgaria have a
considerable shareofnon-hydrorenewablesso far
andBulgariaistheonlycountrywithnuclearcapac-
ities.
As a consequence of the yearly fluctuating hydro-
power conditions the annual load coverage of hy-
dropower varies strongly amongst the countries.1 European Network of Transmission System Operators forElectricity(https://www.entsoe.eu/)
For example, Albania shows a share of renewable
hydropower generation (i.e. excl. pumped storage)
in the years 2011-2017 between 57 and 100%,
Montenegro between 28 and 59% and Greece be-
tween8and12%.
Fig. 2: Installed generation capacity by tech-nologyandcountry2017
Source:ENTSO-E;IHAandAEAforAlbania
Electricity demand in the South-East European re-
gionexhibitedbetween2000and2008arelatively
stronggrowth rate.However, the impactof the re-
cessiononthedemandwassignificantandthepre-
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
hydro RESexcl.hydro nuclearcoal gas&oil pumpedstorage
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-6-
viously expected growth rates for current years
haveyetnotbeenseeninmarkettrends.
Hence, the electricity consumption of the seven
South-Eastern European countries in 2017 was
roughly at or evenbelow the level of 2011 (Fig. 3,
left chart). Greece is by far the largest consumer
with an electricity demand of about 52TWh/a fol-
lowed by Serbia (40TWh/a) and Bulgaria
(34TWh).Thelowerboundaryofthebandwidthof
electricityconsumptionmarksMontenegrowithan
annualdemandofsome3TWh/ain2017.
Despite the relatively slow growth rate of demand
intherecentyearsmostof thesevencountriesde-
pendonelectricityimports–atleastinperiodswith
low water levels in rivers and reservoirs, respec-
tively, and therefore a low electricity production
fromhydropower.Hence,somecountrieshavebeen
import-dependenttoaveryhighdegreeinthepast
years, including FYR Macedonia with on average
31%,Albaniawith27%andMontenegrowith22%
of its total consumption. Only Bulgaria and Bosnia
andHerzegovinawerenetexportingcountriesinall
ofthepast7years(Fig.3,rightchart).
HistoricallytheelectricitygridofformerYugoslavia
was interconnectedandsynchronizedwith theEu-
ropeangrid.In1991thegridintheregionwassplit
into two separately operating synchronous zones,
which were reconnected to the Central European
system in 2004. Additionally, the interconnection
capacity has been increased in the South-Eastern
Europeanregion, i.e.majorbarriers to thecreation
ofaregionalelectricitymarketandasupra-national
dispatch optimization have been removed. Hence,
nationalimportdependencyforsmallercountriesis
at least from the perspective of security of supply
notascriticalas itmayhasbeenthecase inprevi-
ous years. This is especially true against the back-
ground of an almost balanced electricity exchange
of the seven SEE countries with neighbouring re-
gions.
Fig.3:Consumptionandexchangebalance2011–2017
Source:ENTSO-E(forGreecedatarefertointerconnectedsystem)
-
10
20
30
40
50
60
2011
2012
2013
2014
2015
2016
2017
[TWh/a]
Consumption
-15
-10
-5
-
5
10
15
2011
2012
2013
2014
2015
2016
2017
[TWh/a]
Exchangebalance
import
export
Albania BiH Bulgaria FYRM Greece Montenegro Serbia
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-7-
2.2 Countryprofiles2.2.1 AlbaniaSince 1996 Albanian is synchronizedwith the EN-
TSO-Esystemandin2017thetransmissionsystem
operator OST became a member of ENTSO-E. The
country’s domestic generation is almost entirely
dependent on hydropower – in 2017 the total in-
stalled capacity reached about 2,100MW from
which 100MW was thermal. Besides hydropower
no other renewable technology has yet been in-
stalled even if the Ministry of Infrastructure and
Energy launched the selection process for the de-
velopmentandconstructionof the largest solarPV
plant in the region with an installed capacity of
50MW [6]. Though, as the only oil-fired power
planthasbeenoutofoperationtheshareofrenew-
ablesintotalelectricitygenerationisstill100%.
Even if the total installed hydropower generation
capacity has been increased in the last 6 years by
about500MWAlbania ishighly import-dependent,
particularly in drought years. Depending on the
availablewatersupplyhydropowerproductioncan
vary significantly – the capacity factor (defined as
annualgenerationdividedbyinstalledcapacityand
8,760hours)oftheyears2011-2017showsarange
between 24% (2017) and 48% (2013), which
equals to annual full load hours of 2,100h/a and
4,200h/a, respectively.Hence, Albania has been a
considerablenetimporterofelectricityfromneigh-
bouringcountriesandinyearswithseveredrought
–asforexamplein2017–securityofsupplyisstill
achallenge.
The annual electricity consumption was about
7.1TWh in 2017 and peak load demand was
1.4GW. However, the Albanian power sector has
been suffering from comparatively high losses due
to an inefficient transmission anddistribution grid
butmainlyduetonon-technical losses frompower
thefts andnon-collections.Hence, to address these
issues the government has launched energy sector
reforms,whichcouldbeonereasonforthenoticea-
ble decrease in electricity consumption in the last
fewyears.
Fig.4:KeyfigureselectricitygenerationanddemandAlbania2011–2017
Source:EIA,ANA,AEA,IHA
4.04.7
7.0
4.75.9
7.1
4.2
7.0
7.8 7.8 7.77.3 7.1 7.1
2011 2012 2013 2014 2015 2016 2017
[TWh/a]
Generationanddemand2011-2017
2.0GW0.1GW
Generationcapacity2017(2.1GW)
hydro fossil demand
TheroleofhydropowerinselectedSouth-easternEuropeancountries
-8-
2.2.2 BosniaandHerzegovinaBosnia andHerzegovina has a total installed genera-
tioncapacityof4.0GW(2017),ofwhich1.9GWlignite
and 2.1GW hydropower incl. pumped storage. Until
2017no other renewable energy sources but hydro-
power have provided a contribution to the national
generationmix.However, in 2018 the country’s first
windfarmwith22turbinesandaninstalledcapacity
of50.6MWwascommissionedinMesihovina[7]and
the first utility-scale tender for a 65MWPVplant in
Ljubinjewasannounced[8].Hydropowercapacityhas
beenincreasedbyabout130MWinlast6yearsandin
2016 some 300MW of lignite were newly commis-
sioned – the latter increased the output from lignite
power plants by 2TWh to 10.5TWh in 2016 and
10.8TWhin2017.Consequently,theshareofrenewa-
blesintotalelectricitygenerationdroppedin2016on
ayear-to-yearbasis from40%to34%.Duetoanex-
ceptional drought the share of renewables in total
generationfurtherplungedin2017to24%.
DespitethestrongdependencyonhydropowerBosnia
and Herzegovina is the only power exporter in the
Western Balkans. However, hydro conditions have
been affecting the actual import-export balance in
recent years. Depending on thewater supply hydro-
powerproductioncanvarysignificantly–inthepast7
yearsbetween3.6TWhin2017(25%capacityfactor
or2,200 full loadhours) and7.0TWh in2013 (50%
capacity factor or 4,400 full load hours). Bosnia and
Herzegovinaalsohassubstantialhydropumpedstor-
agecapacitiesbutaccordingtoENTSO-Estatistics[5]
the pumped storage plants have only been operated
forafewhoursinthepastyears.
Power consumption has not been significantly
changedinlastfewyearsandwasat12.9TWhwitha
peak load of some2,240MW in 2017. Generally, the
annualdemandhasbeenmostlymovedbyeconomic
andweatherevents.Powerconsumptiongrowthwas
negative in 2012 and 2013 during warm years, and
weak economic growth. Even if the consumption is
expectedtoincreaseinthefuturethepotentiallypos-
sible closure of Aluminij d.d. Mostar could cause a
significantdropinthenationalpowerconsumption.
Fig.5:KeyfigureselectricitygenerationanddemandBosniaandHerzegovina2011–2017
Source:ENTSO-E
4.3 3.8
7.05.7 5.6 5.5
3.6
9.48.4
8.7 8.7 8.510.5
10.8
0.2
12.2 12.2 12.0 11.6 12.0 12.3 12.9
2011 2012 2013 2014 2015 2016 2017
[TWh/a]
Generationanddemand2011-2017
1.7GW
1.9GW
0.4GW
Generationcapacity2017(4.0GW)
hydro fossil pumpedstorage demand
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-9-
2.2.3 BulgariaBulgaria has a total installed generation capacity of
12.0GW (2017), including 4.5GW lignite and hard
coal, 2.0GW nuclear, 0.6GW natural gas, 3.2GW
hydropower incl.pumpedstorageand1.8GWother
renewables.Hence, thegenerationmixdependspri-
marily ondomestic coal andnuclear, i.e. Bulgaria is
the only SEE country considered in this study that
operates a nuclear power station. The country also
have substantial hydro (storage) capacities and un-
like most other SEE countries already considerable
windandsolarcapacityinstalledduetoasuccessful
five-yearimplementationoffeed-intariffs.Neverthe-
less,theshareofrenewablesintotalelectricitygen-
erationisstillcomparativelylowandreachedabout
14%in2017.
Hydropowerhasshownarelativelyslowgrowthrate
inthepast6yearswithanetadditionofonlysome
50MW. Capacity growth in the upcoming years is
expectedtocomemostlyfrom“new”renewablesand
gas to substituteoldanefficient fossil fired thermal
plants. Even if Bulgaria has pursued plans to build
newnuclearplantsforyears,itisunlikelythatthese
projectswillfinallybeaccomplished.
Depending on the available water supply hydro-
powerproductioncanvarysignificantly.Forexam-
ple the range of the capacity factor in the years
2011-2017 was between 13% (2017) and 20%
(2015),whichequalstofullloadhoursof1,200h/a
and2,400h/a,respectively.However,sincethecon-
tributionofhydropowertothetotalannualelectrici-
tygenerationisrelativelysmall–onaverage11%in
theyears2011-2017–andthegenerationportfoliois
well diversified security of supply is generally not
affected from theavailabilityofhydropowercapaci-
ties.
In 2017 Bulgaria’s annual electricity consumption
was about 35.4TWh and peak load demand was
7.7GW.Hence,Bulgariaiswell-suppliedwithpower
compared with demand and is a strong regional
powerexporter.
Fig.6:KeyfigureselectricitygenerationanddemandBulgaria2011–2017
Source:ENTSO-E
2.8 3.1 3.9 4.2 5.6 3.9 2.70.31.51.4
15.2 14.7 13.2 14.714.5
14.9 14.7
25.9 22.1 19.1 19.620.6 18.6 19.5
0.80.7
0.70.5
0.50.7 0.7
34.4 33.6 33.332.0
33.8 34.6 35.4
2011 2012 2013 2014 2015 2016 2017
[TWh/a]
Generationanddemand2011-2017
2.3GW
0.7GW
1.0GW
0.1GW
5.0GW
2.0GW
0.9GW
Generationcapacity2017(12.0GW)
hydro wind solar biomass fossil nuclear pumpedstorage demand
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-10-
2.2.4 The former Yugoslav Republic ofMacedonia
The former Yugoslav Republic of Macedonia
(FYROM)hasa total installedgenerationcapacityof
1.9GW(2017),ofwhich0.7GWlignite,0.4GWnatu-
ralgasandoil,0.7GWhydropowerand0.1GWwind
and solar.Whereas lignite capacities have been sig-
nificantlydecommissionedinthepastyears,gasfired
CHP (combined heat and power) capacities have
been added to the generation system. Also the in-
stalled generation capacity of hydropower has in-
creasedbysome170MWin last6years.Hence, the
share of renewables in total electricity generation
went up to 34% in 2016 from about 20% at the
beginning of the decade. However, in 2017 the
share of renewables dropped to 22% due to the
exceptional drought and low electricity generation
fromhydropower.
Based on ENTSO-E statistics total power consump-
tionhassignificantlyandconstantlydecreasedinlast
few years and was at 7.2TWhwith a peak load of
some1.5GWin2017.Besidethecollapseoftheen-
ergy-intensive industryamajor reason for suchan
extraordinary reduction of the electricity demand
wasprobably the reductionofnon-technical losses
frompowertheftsandnon-collectionsinthedistri-
bution grid. Hence, the constantly decreasing na-
tionalelectricityconsumptionofthepastfewyears
will probablybe turned into a growth trend in the
future.
Despite the strong reduction of the national con-
sumptionFYROMisstillhighlydependonelectricity
imports. In 2017 about 27% of the consumed elec-
tricitywasimportedfromneighbouringcountries.In
drought years import dependency has even been
higher–hydropowerproductionshowedacapacity
factorbetween15%(2017)and35%(2013),which
equals to full load hours of 1,300 and 3,100h/a,
respectively.
Fig.7:KeyfigureselectricitygenerationanddemandFYRMacedonia2011-2017
Source:ENTSO-E
1.5 1.1 1.6 1.1 1.5 1.60.9
0.1 0.10.2
4.94.8 4.1
3.7 3.3 3.3 4.1
9.08.5
8.0 7.97.4
7.1 7.2
2011 2012 2013 2014 2015 2016 2017
[TWh/a]
Generationanddemand2011-2017
0.7GW
0.1GW
1.2GW
Generationcapacity2017(1.9GW)
hydro wind,solarandbiomass fossil demand
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-11-
2.2.5 GreeceAccording to ENTSO-E data Greece had a total in-
stalledcapacityof16.4GWattheendof2017includ-
ing3.9GWlignite,4.3GWnaturalgas,3.4GWhydro-
power incl. pumped storage and 4.8GW other re-
newables. Additionally, about 2.2GW of generation
capacity is installed at the non-interconnected is-
lands(NIIs),whicharemainlysuppliedfromdiesel-
driven generators’. Besides Bulgaria, Greece is the
onlySEEcountrycovered in this studywithasub-
stantial portfolio of “new” renewable energies.
Wind, solar and biomass represent a generation
capacity of 5.1GW (incl. NIIs) at the end of 2017
andhave already exceededhydropower capacities.
However,in2017thegrowthrateof“new”renewa-
bles significantly sloweddownmainlydue toade-
lay in the adoption of the new support policy. In
contrasttothestronggrowthratesof“new”renew-
ables hydropower capacity additions in the past 6
yearsamounttoonlysome170MW.
PeakdemandintheinterconnectedGreekelectrici-
tysystemwas9.6GWin2017andthetotalelectric-
ity generation amounted to45.8TWhwith a share
of renewablesof about30%. Incomparison the re-
newable energy share in the electricitymix of the
NIIswasabout22%,correspondingtoaproduction
of 1.0TWh and an installed capacity of about
500MW.
As in other SEE countries the contribution of hy-
dropower to the national generation mix varies
significantly over the years. The bandwidth of the
hydropower capacity factor was between 17%
(2017) and 27% (2015) and of the full load hours
between1,500h/aand2,400h/a,respectively.
Greece has been a net importer of electricity for
severalyearsbutin2014importssharplyincreased
toabout18%ofannualconsumptionduetoasignif-
icant decrease of electricity production from do-
mestic lignite. However, despite environmental
concerns and a relatively cost-intensive mining
industry Greece decided to invest in new lignite
power stations, i.e. the negative exchange balance
willlikelybereducedintheupcomingyears.
Fig.8:KeyfigureselectricitygenerationanddemandGreece2011-2017
Source:ENTSO-E,HEDNO(*withoutnon-interconnectedislands)
4.0 4.4 5.1 4.5 6.1 5.5 4.00.3 0.2 0.2 0.2
1.5 1.6 1.52.6 3.2 3.4 3.03.9 4.3 4.80.4 1.2
3.4 3.93.6 3.7 3.7
42.4 41.8 35.429.1
26.7 27.4 31.8
53.3 52.349.6 49.4
51.4 51.3 52.0
2011 2012 2013 2014 2015 2016 2017
[TWh/a]
Generationanddemand2011-2017*
2.7GW
2.2GW
2.6GW
0.3GW
10,0GW
0.7GW
Generationcapacity2017(16.4GW)
hydro wind solar biomass fossil pumpedstorage demand
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-12-
2.2.6 MontenegroMontenegrohasatotalinstalledgenerationcapacity
of 1.0GW (2017), of which 0.2GW lignite, 0.7GW
hydropowerand0.1GWwind. In the last fewyears
no major fossil and hydropower capacity additions
have taken place. However, in 2017 the country’s
first wind farm with 26 turbines and an installed
capacityof72MWwascommissionedinKrnovoand
in2018a1GWunderseacablebetweenMontenegro
and Italywillbecompleted thatwillprobablyaffect
theutilizationofMontenegro’sthermalpowerplants.
Based on ENTSO-E statistics total power consump-
tionwasat3.4TWhwithapeakloadofsome0.7GW
in 2017. Similar to otherWestern Balkan countries
thecollapseoftheenergy-intensiveindustryaswell
asthereductionofnon-technicallossesfrompower
thefts and non-collections in the distribution grid
has considerably decreased electricity consumption
in last few years. However, it can be expected that
this trendwillprobablybeturned intoagrowthof
demand in the future.Parallel tothedecreasingde-
mand the share of renewables in total electricity
generationhas increased in the last years andwas
59% in 2016. However, in 2017 the renewables
sharedroppedto43%duetotheextraordinarylow
precipitationintheBalkanregion.
Despite the reduction of the national consumption
Montenegroisstilldependingonelectricityimports.
In2017about33%of theconsumedelectricitywas
importedfromneighbouringcountries.Onlyinyears
withaveryhighproductionfromhydropowerMon-
tenegrohasbeenanetexporterofelectricity,e.g. in
2013. Generally, hydropower production had a ca-
pacity factor in theyears2011-2017between17%
(2017) and 47% (2013) that equals to full load
hoursof1,500and4,200h/a,respectively.
Fig.9:KeyfigureselectricitygenerationanddemandMontenegro2011-2017
Source:ENTSO-E(demand2013basedonCGES)
1.21.5
2.7
1.71.4
1.7
1.0
0.1
1.41.2
1.3
1.31.4
1.2
1.3
4.23.9
3.43.3
3.43.2
3.4
2011 2012 2013 2014 2015 2016 2017
[TWh/a]
Generationanddemand2011-2017
0.7GW
0.1GW
0.2GW
Generationcapacity2017(1.0GW)
hydro wind fossil demand
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-13-
2.2.7 SerbiaSerbia has a total installed generation capacity of
8.5GW(2017),including5.3GWlignite,0.2GWnat-
uralgasand3.0GWhydropower incl.pumpedstor-
age.Sofarnonotablewind,solarandbiomasscapac-
itieshavebeeninstalled.Hence,theshareofrenew-
ables in total electricity generation is still solely
determinedbyhydropowerandreachedabout23%
in2017.However,in2018theconstructionofanum-
berofwindfarmswithatotalcapacityof266MWhas
been announced (Alibunar with 42MW, Čibuk 1
with158MWandKostolacwith66MW)[9],[10].
Hydropowerhasshownarelativelyslowgrowthrate
in the past 6 years with a net addition of some
130MW. Despite growing concerns about environ-
mental aspects and climate change capacity growth
intheupcomingyearsisexpectedtocomefromdo-
mestic lignite. However, old and inefficient lignite
powerplantswillbedecommissionedinparalleland
alsotheconstructionof“new”renewablesisplanned
fortheupcomingyears.
Since run-of river plants at large rivers with com-
paratively smaller annual fluctuations of thewater
supply(e.g.Danube)dominateSerbia’shydropower
production the contribution of hydropower to the
national generation mix shows a significant lower
annual variation compared to other SEE countries.
Therangeofthecapacityfactorintheyears2011to
2017 was between 43% (2017) and 52% (2014),
which equals to full load hours of 3,700h/a and
4,600h/a,respectively.
In2017Serbia’sannualelectricityconsumptionwas
about40.5TWhandpeakloaddemandwas7.4GW.
Besides Bulgaria and Bosnia andHerzegovina Ser-
bia is the only SEE country covered in this study,
which has had a balanced or positive power ex-
changewith neighbours in the past. Only in 2014,
when heavy floods negatively impacted lignite gen-
erationSerbiawasanetimporterofelectricity.
Fig.10:KeyfigureselectricitygenerationanddemandSerbia2011–2017
Source:ENTSO-E
8.6 9.2 10.4 10.9 9.9 10.6 8.9
32.1 30.032.1
25.430.5 30.8
29.7
0.60.6
0.7
0.6
0.7 0.70.6
41.0 40.5
40.539.1 40.4
39.8
40.5
2011 2012 2013 2014 2015 2016 2017
[TWh/a]
Generationanddemand2011-2017
2.4GW
5.5GW
0.6GW
Generationcapacity2017(8.5GW)
hydro fossil pumpedstorage demand
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-14-
3 Perspectivesforfurtherdevelopmentofhydropower
With an installed capacity of about 12.5GW and a
standard capacity of about 34TWh/a hydropower
representstodayabout25%ofthecapacityandgen-
eration mix of the seven SEE countries covered in
thisstudy.Allsevencountriesstillhaveconsiderable
potentials formajorhydropowercapacityadditions,
whichareconsequentlyalsoreflectedinthecountry
specific renewables targets. However, except the
2020 renewable energy targets as included in the
countries’ National Renewable Energy Action Plans
(NREAP) no consistent long-term targets for the
expansion of different renewable energy technolo-
gies and therefore also hydropower in SEE have
beencommunicatedsofar.Hence,besideaquantita-
tive summary of the hydropower potentials in the
sevenSEEcountriesinthischapterthenationalme-
dium-term targets for theexpansionofhydropower
canonlybeprovidedbasedonnationalNREAP tar-
gets.
3.1 Technical and economic hydro-powerpotentials
Asalreadymentioned,itisestimatedthatonlyabout
one third of the technical hydropower potential of
the SEE region has already been exploited so far.
However, due to e.g. economic and environmental
restrictionstypicallyonlyacertainshareofthetech-
nicalhydropowerpotentialcanfinallybeutilized,i.e.
thetechnicalpotentialcanonlygiveafirstindication
about the remaining hydropower potentials in the
SEEregion.Generally,besidesthetechnicalpotential
it can additionally be differentiated between the
theoretical, economic and utilizable potential of re-
newableenergiesasforexampleshowninFig.11(cf.
e.g.[12],[13]).
§ Theoreticalpotential:Fromaphysicalperspec-
tivetheoreticallyuseableamountofenergywith-
inalimitedregionandoveraspecifictimeperiod
(e.g.potentialenergyofdrainageinriverstretch-
esofacertaincountry).Thetheoreticalpotential
hasnopracticalrelevancebutistypicallyusedto
calculateotherpotentials.
§ Technical potential: Defined as the part of the
theoretical potential that is available if technical
restrictions are taken into account, such as effi-
ciencies and conversion losses. Other technical
restrictions can be e.g. the availability of a grid
connection,theaccessibilityofalocationtobuild
a power plant or the daily/seasonal demand for
energy.
Fig. 11: Definition of different renewable po-tentialsandappliedrestrictions
Source:Hermann[13]
§ Economic potential: Is thepartof the technical
potentialthatcanbeeconomicallyutilizedunder
thecurrentortheexpectedfuturemarketframe-
work.Theeconomicpotentialofrenewabletech-
nologiesisstronglydeterminedbythecoststruc-
ture of conventional technologies that are used
for thecomparisonwiththecoststructureofre-
newables.Hence,theeconomicpotentialisafunc-
tionoftheunderlyingassumptionsofe.g.fueland
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-15-
carbon emission costs, investment and mainte-
nancecostsandcostsoffinancing.
§ Utilisablepotential:Istheshareoftheeconomic
potential that is accessible if not only technical
andeconomicbutalsootherrestrictionsaretak-
enintoaccount(e.g.legalandregulatorybarriers,
environmentalrestrictions).Theutilisablepoten-
tialisnormallysmallerthantheeconomicpoten-
tial but subsidies for renewable energies can
boost the utilisable potential even beyond the
economicpotential.
For its recently issued report “Cost-CompetitiveRe-
newable Power Generation: Potential across South-
EastEurope”[11]theInternationalRenewableEner-
gyAgency(IRENA)collectedandpublishedthelatest
publiclyavailableinformationonhydropowerpoten-
tials inSEEonacountry level.Besidesthetechnical
potentialtheIRENAreportalsoincludestheso-called
cost-competitive(i.e.economic)potentialtoconsider
thefactthatonlyaportionofthetechnicalpotential
can–fromaneconomicpointofview–effectivelybe
implemented. IRENA defines the cost-competitive
renewable energy potential as the potential that is
cost-competitivewithnewhardcoal,naturalgasand
lignite fired power plants. However, the IRENA re-
port explicitlymentions that environmental aspects
were not taken into account to derive the cost-
competitive hydropower potentials and stated “the
real implementable renewable potentials might be
lower, due to increasing environmental protection
requirements”.
The IRENA report includes all seven SEE countries
covered in this study except Greece. Hence, for
Greece the technical and economic hydropower po-
tential is derived from other publications (cf. [17]
and [18]). Additionally, the technical hydropower
potentialsasincludedintheIRENAreportareveri-
fied with other publications and – if justifiable –
adopted.2Fig.12depictsthetechnicalandaddition-2 NotethathydropowerpotentialsasincludedinpublicationsoftheEU-fundedprojectRegionalStrategyforSustainableHydro-
al economic potentials of hydropower capacities
(left)andgeneration(right)inthesevenSEEcoun-
triesaswellastherespectivenumbersfortheyear
2017.The countries represent a hydropowerport-
folioof12.5GWinstalledcapacitieswithanaverage
annualgenerationofabout33.6TWh/a3.Intotalthe
technical potential amounts to some 36GW and
99TWh/a,respectively, i.e. thetechnicalpotential is
about three times above the actual usage. The total
economic potential is estimated to be 25GW and
71.0TWh/a,respectively, i.e.onethird less thanthe
technicalpotentialbut still100%above the current
usage.Hence, theadditionalcost-competitivepoten-
tial is about 13GW and 37.4TWh/a. However, the
individualcountrieshavedifferentdeploymentrates
oftheirhydropowerpotentials,whichisdiscussedin
thefollowinginmoredetails.
§ Albaniahasatechnicalhydropowerpotentialof
4.8GW(15.6TWh/a)andaneconomicpotential
of 3.9GW (13.2TWh/a). Based on the installed
hydropower capacity of 2.0GW (6.2TWh/a) in
2017anadditionalcost-competitivepotentialof
1.9GW (7.0TWh/a) can be derived. Hence, Al-
baniahasyetexploitedabout40%ofitstechnical
and50%ofitseconomicpotential,respectively.
§ BosniaandHerzegovinahasatechnicalhydro-
powerpotentialof6.1GW(24.5TWh/a)andan
economic potential of 4.2GW (14.6TWh/a).
Based on the installed hydropower capacity of
1.7GW(5.2TWh/a) in2017anadditional cost-
competitivepotentialof2.5GW(9.4TWh/a)can
be derived. Hence, Bosnia and Herzegovina has
yetexploitedabout25%ofitstechnicaland40%
ofitseconomicpotential,respectively.
powerintheWesternBalkans(cf.[14])onlyconsiderpotentialsof largehydropower (except for FYROMandpartiallyMonte-negro).I.e.besidespossiblegeneraldifferenceinthedefinitionof the technicalhydropowerpotential thepublishednumberscannotdirectlybecompared.
3 Calculatedonthebasisofinstalledcapacities2017andaveragefull load hours of the years 2011 to 2017, i.e. numbers differfromactualgenerationintheyear2017.
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-16-
Fig.12:Hydropowercapacityandgenerationin2017aswellasadditionaleconomicandtechnicalhy-dropowerpotential
Source:Source:ENTSO-E;AEA,IRENA,IHA,GovernmentofMacedonia
§ Bulgaria has a technical hydropower potential
of9.0GW(13.4TWh/a)andaneconomicpoten-
tial of 4.0GW (8.6TWh/a). Based on the in-
stalled hydropower capacity of 2.3GW
(3.8TWh/a) in 2017 an additional cost-
competitivepotentialof1.7GW(4.8TWh/a)can
be derived. Hence, Bulgaria has yet exploited
about25%ofitstechnicaland60%ofitseconom-
icpotential,respectively.
§ FYR Macedonia has a technical hydropower
potentialof1.6GW(4.0TWh/a)andaneconom-
icpotentialof1.3GW(3.7TWh/a)according to
the IRENA report “Cost-Competitive Renewable
Power Generation: Potential across South-East
Europe” [11].However, in itsbackgroundreport
No. 1 “Past, present and future role of hydro-
power”theprojectRegionalStrategyforSustain-
able Hydropower in the Western Balkans [14]
showedatechnicalpotentialofabout9.8TWh/a
andalsotheofficiallystatedtechnicalpotentialof
5.5TWh/a[15],[16]isabovethenumberinthe
IRENAreport.Hence,inthefollowingatechnical
potentialof5.5TWh/aand2.3GW,respectively,
isassumedforFYRMacedonia.Basedonthein-
stalled hydropower capacity of 0.7GW
(1.6TWh/a) in 2017 the additional cost-
competitive potential amounts to 0.6GW
(2.1TWh/a). Hence, FYRMacedonia has yet ex-
ploitedabout30%ofitstechnicalandabout50%
ofitseconomicpotential,respectively.
§ Greecehasa technicalhydropowerpotentialof
8.0GW(15.0TWh/a) [17]andaneconomicpo-
tential of 6.3GW (12.0TWh/a) [18]. Based on
the installed hydropower capacity of 2.7GW
(5.2TWh/a) in 2017 an additional cost-
competitivepotentialof3.5GW(6.8TWh/a)can
bederived.Hence,Greecehasyetexploitedabout
35%ofitstechnicaland45%ofitseconomicpo-
tential,respectively.
§ Montenegrohasatechnicalhydropowerpoten-
tialof2.04GW(5.0TWh/a)andaneconomicpo-
tentialof1.96GW(4.5TWh/a)accordingto the
2.0
1.7 2.3
0.7
2.7
0.7
2.4
1.9
2.5 1.7
0.6
3.5
1.3
1.2
4.8
6.1
9.0
2.3
8.0
2.7
4.7
[GW]
Installedcapacity
6.2
5.2
3.8
1.6
5.2
1.6
10.0
7.0 9.4
4.8
2.1
6.8
2.9
4.5
15.6
24.5
13.4
5.5
15.0
6.6
18.0
[TWh/a]
Annualgeneration
capacity/generation2017 additionalcost-competitivepotential technicalpotential
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-17-
IRENA report “Cost-Competitive Renewable
Power Generation: Potential across South-East
Europe” [11]. However, even without having
considered small hydropower to a full extend
theRegionalStrategy forSustainableHydropow-
erintheWesternBalkans[14]showedaconsid-
erable higher technical potential of about
6.6TWh/a.Hence,inthefollowingatechnicalpo-
tential of 6.6TWh/a (2.7GW) is considered for
Montenegro.Basedonthe installedhydropower
capacityof0.7GW(1.6TWh/a)in2017anaddi-
tional cost-competitive potential of 1.3GW
(2.9TWh/a)canbederived.Hence,Montenegro
hasyet exploitedabout25%of its technical and
35%ofitseconomicpotential,respectively.
§ Serbia has a technical hydropower potential of
4.7GW(18.0TWh/a)andaneconomicpotential
of 3.6GW (14.5TWh/a). Based on the installed
hydropowercapacityof2.4GW(10.0TWh/a)in
2017anadditionalcost-competitivepotentialof
1.2GW(4.5TWh/a)canbederived.Hence,Ser-
bia has yet exploited about 50% of its technical
and70%ofitseconomicpotential,respectively.
3.2 2020NREAPtargetsIn 2006, Albania, Bosnia and Herzegovina, FYR
Macedonia, Montenegro and Serbia ratified the
Treaty on establishing the Energy Community
(EnC).AspartoftheirobligationsundertheEnCthe
Western Balkan countries have committed them-
selves to increase the overall share of renewable
energies – from country to country between 25%
and40%by2020.In2012theWesternBalkancoun-
tries also adopted the EU Renewable Energy Di-
rective with binding renewable energy targets for
2020andtheobligationtosubmitaNREAPtofurther
detail renewable energy targets. However, no long-
term targets for renewable energies in general
and/orhydropower inparticularhavebeendefined
yet, i.e. theNREAPsprovide theonly consistent tar-
gets for the expansion of hydropower in the seven
SEE countries covered in this study. Table 1 shows
for each country (a) theNREAP targets for the ex-
pansionofhydropower(excl.pumpedstorage),(b)
the installed hydropower capacity 2010, (c) the
installedhydropowercapacity2017,(d)thecapaci-
tyadditionsfrom2010to2017and(e)theremain-
ingcapacitygaptoachieveNREAPtargetsfor2020.
Table1:NREAP2020targets forhydropowerandinstalledhydropowercapacityinMW
NREAPtarget
2020
Installedcapacity
2010
Installedcapacity
2017
Capacityadditions
2010-2017
Rem
ainingcapacity
gapNREAPtargets
Albania 2,320 1,500 2,020 520 300
BiH 2,210 1,530 1,660 130 550
Bulgaria 2,420 2,120 2,340 220 80
FYROM 750 500 680 180 70
Greece 2,950 2,520 2,700 180 250
Montenegro 830 640 660 20 170
Serbia 2,660 2,220 2,380 160 280
Total 14,140 11,030 12,440 1,410 1,700
Source:ENTSO-E,AEA,NREAPsofcountries
In addition, Fig. 13 provides an overview of the
installed hydropower development between 2010
and2017andtheadditionalcapacitythatwouldbe
requiredtoachievethe2020NREAPtargets.Fig.13
also includes theremainingcost-competitivepoten-
tials.
All seven NREAPs sum up to an envisaged hydro-
power net capacity addition of about 3.1GW be-
tween2010and2020,whichcorrespondstoacapac-
ityincreaseof28%comparedto2010.Intotalsome
1.4GWhavealreadybeenimplemented,i.e.anaddi-
tional 1.7GW of hydropower capacities would be
required to meet overall NREAP targets. However,
there are large differences between the individual
countriesintheprogressofhydropowerdeployment.
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-18-
Ifgrowthratesoftheyears2010-2017aretakeninto
account Albania, Bulgaria and FYR Macedonia will
likelymeettheirhydropowertargetsfor2020,while
GreeceandSerbiawillneedadditionaleffortsifthey
want to reach theirhydrospecific2020NREAP tar-
gets. In contrast Bosnia andHerzegovina aswell as
MontenegrowillhardlybeabletomeettheirNREAP
targetsforhydropower.Inthefollowingabriefcoun-
try specific summary about the extent towhich ob-
jectivesarebeingachievedisprovided.
§ Albania’s NREAP defines a capacity target for
hydropowerof2.32GWby2020oran increase
of55%(0.82GW)comparedto2010.Twothird
ofthetargethasalreadybeenachievedby2017,
henceAlbaniaisonapromisingwaytomeetits
2020targetsforhydropower.
§ Bosnia and Herzegovina has a 2020 NREAP
target for hydropower excl. pump storage of
2.21GW, i.e. an increaseof44%(0.68GW)com-
paredto2010wouldberequired.However,only
0.13GW of new hydropower capacity has been
addedinthepastfewyears,whichmakesitvery
unlikely that Bosnia and Herzegovina will ac-
complishits2020objectives.
§ Bulgaria defined a 2.42GW NREAP target for
hydropowerin2020,whichcorrespondstoanin-
crease of 14 (0.30GW) compared to 2010. Be-
tween 2010 and 2017 already some 0.22GW of
newhydropowercapacitieswerebuilt,i.e.Bulgar-
iawillprobablymeetitshydropowertargets.
§ FYRMacedoniaincludedahydropowertargetof
709MW for 2020 in its NREAP. However, it
seems that theNREAP confused 2019 and 2020
targetsforhydropower>10MW,sincetheofficial
numbers for 2020 would lead to a decline of
about20MWhydropowercapacityfrom2019to
2020. Therefore, it can be assumed that the
NREAP numbers for large hydropower in the
years 2019 and 2020 are interchanged, i.e. the
correct 2020 NREAP target for hydropower
shouldprobablybe750andnot709MW.Hence,
compared to 2010 FYRMacedonia targets a hy-
dropowercapacityadditionof50%(0.25GW)un-
til2020ofwhich0.18GWhavealreadybeenim-
plemented.
§ Greece aims to achieve2.95GWof installedhy-
dropower capacity by 2020, which corresponds
toanincreaseof17(0.43GW)comparedto2010.
However, hydropower expansion has been im-
plemented too slow so far (+0.18GW between
2010 and 2017),whichwillmake it difficult for
GreecetomeetitsNREAP2020hydropowertar-
gets.
§ Montenegrohasa2020hydropowertargetinits
NREAPof0.83GW.Thisrepresentsanincreaseof
30%(0.19GW)comparedto2010.However,be-
tween2010and2017onlysome0.02GWofnew
hydropower capacity was commissioned, i.e.
Montenegro will likely miss its 2020 target for
hydropower.
§ Serbiadefinedahydropowertargetof2.66GWin
itsNREAPfor2020,whichcorrespondstoanin-
crease of 20% (0.44GW) compared to 2010.
However,hydropowerexpansionatalevelofthe
past growth rate of the past years (0.16GW be-
tween2010and2017)wouldnotbesufficientto
meet Serbia’s NREAP targets for hydropower in
2020.
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-19-
Fig.13:Hydropowercapacitydevelopment2010-2017,NREAP2020targetandeconomicpotential
Source:IRENA,ENTSO-E,NREAPsofcountries
1.50
1.54
1.60
1.65
1.73
1.80
1.91
2.02
1.9
0.30
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
pot.
[GW]
Albania
1.53
1.53
1.53
1.59
1.62
1.62
1.66
1.66
2.5
0.55
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
pot.
[GW]
BosniaandHerzegovina
2.12
2.29
2.30
2.30
2.33
2.33
2.34
2.34
1.7
0.08
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
pot.
[GW]
Bulgaria
0.50
0.50
0.50
0.50
0.54
0.54
0.68
0.68
0.6
0.07
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
pot.
[GW]
FYRMacedonia
2.52
2.52
2.53
2.54
2.54
2.54
2.69
2.70
3.5
0.25
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
pot.
[GW]
Greece
0.64
0.66
0.66
0.66
0.66
0.66
0.66
0.66
1.3
0.17
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
pot.
[GW]
Montenegro
2.22
2.27
2.27
2.34
2.37
2.39
2.40
2.40
1.2
0.27
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
pot.
[GW]
Serbia
remainingeconomicpotential
installedcapacity
capacitygaptoachieveNREAPtarget
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-20-
3.3 HydropowerprojectpipelineSouth-Eastern European countries and especially
the Western Balkans still represent a significant
portionofuntappedhydropowerpotentials.Efforts
to further exploit these potentials have been
strengthenedinrecentyearsandhence,afewthou-
sand new hydropower plants are in the project
pipeline in the SEE region. EuroNatur and River-
Watchhavebeen closelymonitoring and reporting
hydropower expansion activities in SEE countries4
and provided an updated list of hydropower pro-
jects for the seven SEE countries covered in this
study[19].
TheEuroNatur/RiverWatchprojectlistincludesthe
nameof theproject, theaffectedriver, theplanned
installed capacity (allocated to one of the four size
categories 0.1-1MW, 1-10MW, 10-50MW and
>50MW) and the project feasibility as result of an
ecological classification by EuroNatur/RiverWatch
(i.e.locatedinexclusionornonexclusionzonesfrom
EuroNatur/RiverWatch perspective). The Eu-
roNatur/RiverWatch list considers in total 2,354
hydropower projects for the seven SEE countries.
However,sincesolepumpedstorageprojectsarenot
considered in this study threepumpedstoragepro-
jects are excluded for the further analysis. Hence,
2,351 projects from the EuroNatur/RiverWatch list
remainrelevant.Table2providesacountryspecific
overviewaboutthenumberofprojectsallocatedto
eachsizecategory.
With842projectsmore thanone thirdof the con-
sidered projects are located in Serbia. Greece, Bul-
gariaandBosniaandHerzegovinawithapipelineof
each between 300 and 400 projects are already
lagging behind Serbia but still have a considerable
number of projects. Albania follows this group of
countries with 252 projects. FYR Macedonia with
154 projects and Montenegro with 92 projects
completethesevenSEEcountries.
4 e.g..https://riverwatch.eu/de/balkanrivers/map
Table 2: Hydropower projects covered byEuroNatur/RiverWatchprojectlist
0.1MW-1MW
1MW-10MW
10MW-50MW
>50MW
allprojects
Albania 112 106 24 10 252
BiH 84 159 49 13 305
Bulgaria 212 112 2 6 332
FYROM 88 48 13 5 154
Greece 226 142 6 0 374
Montenegro 13 58 11 10 92
Serbia 703 110 18 11 842
Total 1,438 735 123 55 2,351
Source:EuroNatur/RiverWatch
About92%ofall consideredprojectsaresmallhy-
dropower plants below 10MW and two third are
even below 1MW. Therefore large hydropower
plants (i.e. above 10MW) only contribute 8% or
173projectstotheoverallprojectlist.Fig.14shows
thenumberofhydropowerprojectsallocatedtothe
foursizecategoriesforallsevenSEEcountries.
Fig.14:Hydropowerprojectspersizecatego-ryEuroNatur/RiverWatchprojectlist
Source:EuroNatur/RiverWatch
1,43861%
73531%
1235%
553%
0.1-1MW 1-10MW 10-50MW >50MW
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-21-
However,evenifthenumberofsmallandespecially
verysmallhydropowerplantsisveryhightheymay
only have a limited contribution to the overall in-
stalledcapacityandannualgeneration,respectively.
Since theEuroNatur/RiverWatch listdoesonlypro-
videthesizecategorybutnospecificdataaboutthe
installed capacity and annual generation (so called
standard capacity) of the projects these data are
estimatedaccordingtothefollowingapproach:
− The installed hydropower capacity is assumed
tobe0.5MWforprojectsallocatedtothecate-
gory0.1-1MW,5MWforprojectsofthecatego-
ry1-10MW,30MWforprojectsofthecategory
10-50MWand75MW forprojectsof the cate-
goryabove50MW.
− The annual generation is calculated from the
estimated capacity and the average country
specificfullloadhoursofhydropowerplantsof
theyears2011-2017.
For an individual project this approach potentially
delivers a deviation from the actual capacity and
generation,respectively.However, thisstudyisnot
focusedontheevaluationofindividualprojectsbut
ratherontheassessmentofcountryspecificproject
portfolios, for which this approach certainly pro-
videssufficientaccuracy.
In total the EuroNatur/RiverWatch list comprises
hydropower projects with some 12.2GW of in-
stalled capacity and 35.9TWh/a of annual genera-
tion.Fig.15providesamoredetailedbreakdownof
projectcapacitiesandgenerationbetweencountries
as well as size categories. Projects in Bosnia and
Herzegovina,SerbiaandAlbaniacontribute togeth-
er62%of the capacityand73%of thegeneration,
respectively. The reason for the noticeable higher
share in the projects’ total generation is because
average full loadhours in the three countrieshave
beensignificantlyabovefull loadhoursinBulgaria,
Greece, FYR Macedonia and Montenegro, i.e. one
MWofnewly installedhydropowercapacitywould
potentially produce more MWh per year in this
threecountries.
Fig. 15: Capacity (left) and annual generation (right) of hydropower project portfolios Eu-roNatur/RiverWatchprojectlist
Source:EuroNatur/RiverWatch
750
975
450
375
-
750
825
720
1,470
60
390
180
330 540
530
795
560
240
710
290
550
56
42
106
44
113
7
352∑2,056
∑3,282
∑1,176∑1,049∑1,003
∑1,377
∑2,267
AL BiH BG FYROM GR ME RS
[MW]
2.3 3.1
0.7
0.9 1.8
3.4
2.2
4.7
0.1 0.9
0.3
0.8
2.3
1.6
2.5
0.9
0.6
1.4
0.7
2.3
0.2
0.1
0.2 0.1
0.2
1.5
∑6.3
∑10.4
∑1.9∑2.5
∑1.9∑3.4
∑9.4
AL BiH BG FYROM GR ME RS
[TWh/a]
>50MW 10MW-50MW 1MW-10MW 0.1MW-1MW
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-22-
Withregardtosizecategoriesitisespeciallynotice-
able that large hydropower plants provide 2/3 of
the capacity and generation, respectively. Small
hydropower,whichrepresents92%oftheprojects,
delivers1/3of thecapacityandgeneration, i.e. the
numberofplant and contribution to the electricity
system of large and small hydropower are exactly
oppositetoeachother.
Compared to the already installed capacity of
12.5GW (excl. pumped storage) and the average
generationof about34TWh/a the announcedpro-
jects would double the use of hydropower in the
seven SEE countries. However, the ratio between
thealreadyinstalledcapacitiesandcapacitiesbased
onEuroNatur/RiverWatchprojectlistdifferswidely
among countries and inmost countries the cumu-
latedcapacityofallprojectsevenexceedseconomic
hydropowerpotentials.ThisisshowninFig.16that
compares on a country-by-country level the total
capacityof theprojects to thealready installed ca-
pacityaswellas theadditionalcost-competitiveor
economicandthetechnicalpotential.
§ Albania:Projectssumuptoaninstalledcapacity
of 2.1GW and an annual generation of
6.3TWh/a, respectively, i.e. they would double
today’s hydropower capacities. Even if this
number is slightly above the additional cost-
competitive potential of 1.9GW, the project
pipeline plausibly reflects from an energy eco-
nomicpointofviewAlbania’soptionsfortheex-
pansionofhydropower.
§ BosniaandHerzegovina:Theprojectpipelineof
3.3GW (10.4TWh/a) would triple the country’s
actual hydropower generation.However, the cu-
mulated capacityof all projects exceeds the eco-
nomic potential by about 30%. Hence, it seems
that economic aspectshavenotbeen sufficiently
considered in all projects yet, i.e. it can be ex-
pectedthatanumberofprojectswillnotbepur-
suedunless e.g. additional subsidies compensate
theeconomicunattractivenessoftheseprojects.
Fig. 16: Capacity of hydropower projects EuroNatur/RiverWatch list compared to installed capacity2017,additionalcost-competitiveandtechnicalpotential
Source:EuroNatur/RiverWatch,IRENA,IHA
2.0
1.7 2.3
0.7 2.7
0.7 2.4
2.1 3.3
1.2
1.0
1.0
1.4
2.3
1.9
2.5 1.7
0.6
3.5
1.3
1.2
4.8
6.2
9.0
2.3
8.0
2.7
4.7
Albania BiH Bulgaria FYRM Greece Montenegro Serbia
[GW]
technicalpotential additionalcost-competitivepotentialEuroNatur/RiverWatchprojectlist installedcapacity2017(excl.pumpedstorage)
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-23-
§ Bulgaria: Projects considered by EuroNa-
tur/RiverWatchaccount foracapacityof1.2GW
and an annual generation of 1.9TWh/a, respec-
tively, i.e. theywould increase the use of hydro-
powerbyabout50%.Takingtheeconomicpoten-
tial of 1.7GW into account the project pipeline
plausiblyreflectsBulgaria’soptionstofurtherex-
pandtheuseofhydropower.
§ FYRMacedonia: The project pipeline of 1.0GW
(2.5TWh/a) would not only increase the coun-
try’s use of hydropower by about 140% but
wouldalsoexceedtheeconomicpotential,which
isabout0.6GW.However,thecountryhasanad-
ditionalavailabletechnicalpotentialof1.6GW,i.e.
the site conditions would in principle allow the
implementationoftheannouncedprojectsifeco-
nomicboundaryconditionswerereasonable.
§ Greece:Theprojectswoulddeliveracapacityof
1.0GW(1.9TWh/a)andcorrespondtoaboutone
thirdofthecurrentlyinstalledcapacity.Sincethe
projectpipeline iswellbelowtheadditionaleco-
nomic potential of 3.5GW, the pipeline is inline
with the fundamental possibilities to expand the
useofhydropowerinGreecefromanenergyeco-
nomicperspective.
§ Montenegro: The country’s project pipeline of
1.4GW (3.4TWh/a) would not only double the
use of hydropower but also slightly exceed the
economic potential of 1.3GW. However, with a
remainingtechnicalpotentialofsome2.0GWthe
implementation of the already announces pro-
jects would in principle be possible even if the
projectpipelineseemstobequiteambitious.
§ Serbia: With a project pipeline of 2.3GW
(9.4TWh/a) Serbiawould almost double its use
ofhydropower.However,theannouncedprojects
wouldnotonlyexceedtheeconomicpotentialof
1.2GWby farbutwouldalsorequire the fullex-
ploitationofthetechnicalpotential.Thisseemsto
beratherambitious.
3.4 AglanceatsmallhydropowerWhilelargehydropower(i.e.installedcapacityabove
10MW) is awell-established technology in the SEE
region, small hydropower (<10MW) has emerged
only in the last fewyears.Hence, largehydropower
still represents 95% of the installed hydropower
capacities in the seven SEE countries that are cov-
ered in this study. In contrast, small hydropower
represents 92% of the number of projects of the
EuroNatur/RiverWatch listand1/3of thecapacity
andannualgeneration,respectively.Thismismatch
between thenumberandquantitative contribution
of projects is even larger for (very) small hydro-
powerprojectsbelow1MW,which represent61%
ofthenumberofprojectsinthesevenSEEcountries
but only provide 6% of the capacity and annual
generation.
Fig.17givesanoverviewof theshareofsmalland
largehydropowerforallsevenSEEcountriesfor(a)
the existing hydropower plants, (b) the capacity
additions between 2010 and 2015, (c) the NREAP
targets, (d) the EuroNatur/RiverWatch (EN/RW)
projectlistand(e)theadditionaleconomicorcost-
competitivepotential–acountryspecificanalysisis
providedinFig.18.
Fig.17: Shareof small and largehydropowerininstalledcapacityinallsevenSEEcountries
Source:IRENA,ENTSO-E,NREAPsofcountries,EuroNatur/Ri-verWatch
5%
36%
38%
36%
20%
95%
64%
62%
64%
80%
status2015
additions2010-2015
NREAPtarget
EN/RWprojectlist
add.econ.potential
smallhydropower(<10MW) largehydropower(>10MW)
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-24-
Fig.18:Shareofsmallandlargehydropowerininstalledcapacity
Source:IRENA,ENTSO-E,NREAPsofcountries,EuroNatur/RiverWatch
10%
46%
55%
29%
35%
90%
54%
45%
71%
65%
status2015
additions2010-2015
NREAPtarget
EN/RWprojectlist
add.econ.potential
Albania
4%
47%
32%
26%
30%
96%
53%
68%
74%
70%
status2015
additions2010-2015
NREAPtarget
EN/RWprojectlist
add.econ.potential
BosniaandHerzegovina
15%
75%
19%
57%
5%
85%
25%
81%
43%
95%
status2015
additions2010-2015
NREAPtarget
EN/RWprojectlist
add.econ.potential
Bulgaria
14%
39%
52%
27%
12%
86%
61%
48%
73%
88%
status2015
additions2010-2015
NREAPtarget
EN/RWprojectlist
add.econ.potential
FYRMacedonia
8%
10%
17%
82%
92%
90%
83%
18%
N/A
status2015
additions2010-2015
NREAPtarget
EN/RWprojectlist
add.econ.potential
Greece
3%
31%
47%
22%
7%
97%
69%
53%
78%
93%
status2015
additions2010-2015
NREAPtarget
EN/RWprojectlist
add.econ.potential
Montenegro
3%
63%
39%
40%
9%
97%
37%
61%
60%
91%
status2015
additions2010-2015
NREAPtarget
EN/RWprojectlist
add.econ.potential
Serbia
smallhydropower(<10MW)
largehydropower(>10MW)
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-25-
In2015only5%oftheinstalledhydropowercapac-
ity in the seven SEE countries was provided by
small hydropower.However, theNREAP targets of
all sevenSEE countrieshaveput a strong focuson
smallhydropower,38%of the total3.1GWhydro-
power targetsbetween2010and2020 isallocated
to small hydropower. The NREAP targets are al-
ready reflected in the capacity additions between
2010 and 2015, where small hydropower contrib-
utedabout36%tothetotalnewhydropowercapac-
itiesof1.1GW.Bychance,thisisthesamepercent-
age of the share of small hydropower as it can be
derived for the actual project portfolio from the
EuroNatur/RiverWatch list. Though, on country
level significant differences can be identified with
regardtothedevelopmentofsmallhydropower:
− NREAP2020 targets for smallhydropowerare
between 17% (Greece) and 55% (Albania) of
thetotalnationalhydropowercapacitytargets.
− In the EuroNatur/RiverWatch project list the
share of small hydropower ranges between
22%inMontenegroand82%inGreece.
− Theshareof smallhydropower in capacityad-
ditionsof theyears2010-2015variesbetween
10%inGreeceand75%inBulgaria.
However, the relatively strong focus of the coun-
tries’ hydropower strategies on small hydropower
is not necessarily reflected in the economic poten-
tials. For example, the IRENA report about cost-
competitive renewables potential across South-East
Europe showsonaveragea20%shareof smallhy-
dropower in the total economichydropowerpoten-
tials [11]5. On a country level this share ranges be-
tween5% inBulgaria and35% inAlbania, i.e. from
aneconomicperspectivesmallhydropowerseemsto
be overrepresented inmost of the seven SEE coun-
try’srenewablesstrategies.
5 W/oGreece,whichisnotconsideredintheIRENAreport.
The comparatively low share of small hydropower
in the economic potentials is quite comprehensible
because specific investment costs of small hydro-
power plants are in general higher than specific in-
vestmentcostsoflarge(er)hydropowerplants.Since
therearenoconsistentnumbers for the investment
costsofhydropowerplantsinSEEcountriesavailable
thefollowingFig.19showsasanexampletheresults
ofaneconomicanalysis thatwasconducted for159
Austrian run-of river power plants and projects,
respectively,intheyear2016[20].
Fig. 19: Specific investment costs of run-ofriverpowerplantsinAustria
Source:e3consult
The159hydropowerplantsconsideredintheanaly-
sis had been either put in operation since 2009 or
were under construction and in an advanced plan-
ning stage, respectively. The study showed that the
capacity weighted average of the investment costs
was4.0MillionEurosperMW.Although the results
didn’t show a clear correlation between installed
capacityandspecific investmentcost thestudycon-
cluded that small hydropower plants below 2MW
typically have the highest specific investment costs,
whereas the most attractive hydropower plants in
Austria were in the range between about 5 and
-
2
4
6
8
10
0.1 1.0 10.0 100.0
spec.investmentcostin[M€ 2
016/MW]
bottleneckcapacityin[MW]
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-26-
10MW.Eveniftheseresultscannotbedirectlytrans-
ferred to the seven SEE countries, they provide at
leastastrongindicationthatverysmallhydropower
plants are from an economic perspective the least
favourable hydropower option. Hence, very small
hydropower plants would require more subsidies
perMWandMWh,respectively,toprovidepotential
investorsaviablebusinesscase.
However, beside possible economic issues small
hydropower plantsmay also have disadvantages in
terms of grid connection compared to large hydro-
power. For example, the final report of the study
Regional Strategy for SustainableHydropower in the
WesternBalkans [21]stated“[…] thecapacityof the
distributionnetworks in theregion is insufficient to
facilitate growing demand for connection of new
small HPPs and distributed generation in general”.
On the other hand the study also concluded: “The
capacity of the transmission grid, if observed from
theregional level, seemstobesufficient to facilitate
any additional major planned HPP development
projects.” Hence, at least for the foreseeable future
the grid connection of additional large hydropower
capacities seem easier to implement than the grid
connectionofthesamecapacitiesfromsmallhydro-
power.
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-27-
4 FeasibilityofhydropowerprojectsaccordingtoEuroNatur/River-Watchcriteria
Theeffortsofmostcountries to furtherexploit the
remaining hydropower potentials is impressively
shown in the EuroNatur/RiverWatch project list
with a total number of 2,351 projects (excl.
pumped-storage) for the seven SEE countries con-
sidered in this study. However, the expansion of
hydropowerhasalsocausedincreasingenvironmen-
talconcernsbecausenewhydropowerplantsprimar-
ilyaffectriverstretcheswithahighecologicalvalue.
Hence,EuroNatur/RiverWatchappliedanecological
evaluation to 2,351 hydropower projects to classify
the feasibility of the projects from Eu-
roNatur/RiverWatchperspectivelocatedinexclusion
or non-exclusion zones. Based on the ecological
classification of projects this chapter assesses the
effectsoftheEuroNatur/RiverWatchclassificationon
thefurtherdevelopmentofhydropowerintheseven
SEE countries. Additionally, it is evaluated if other
renewable energy sources, such aswind and solar
PV,wouldbeabletosubstitute“exclusion”projects.
4.1 Ecological classification of hy-dropowerprojects
EuroNatur/RiverWatch provided a classification of
all projects considered in its project list either as
located in an exclusion zone or in a non-exclusion
zone [19], i.e. the assessment reflects EuroNa-
tur/RiverWatch’sperspectiveof theecological feasi-
bility of a project. Table 3 provides this differentia-
tionbetweenprojectsin“non-exclusion”and“exclu-
sion”zonesoftheEuroNatur/RiverWatchprojectlist.
In total198or8.5%of theprojectsareclassifiedas
“non-excluded”, i.e. could be ecologically feasible
according to the criteria applied by Eu-
roNatur/RiverWatch. However, since only 7 large
hydropower projects are classified as ecologically
feasible a mere of 4% or 531MW of the installed
capacity of all projects (12,210MW) is allocated to
projectsinnon-exclusionzones.Thisisalsoshownin
Fig. 20 that presents the share of “exclusion” and
“non-exclusion”projectsinthetotalinstalledcapaci-
tyoftheprojectsonacountryaswellasanoverall
regionlevel.Asaresultthecapacityofprojectsthat
are located in non-exclusion zones range between
almost 0% in Montenegro, where only two small
hydropower projects are classified as feasible, and
11%inFYRMacedonia.
Table3:Numberofhydropowerprojectsclas-sified in “exclusion” and “non-exclusion” byEuroNatur/RiverWatch
Country
EuroNatur
classification
0.1MW-1MW
1MW-10MW
10MW-50MW
>50MW
allprojects
[-] [-] [-] [-] [-] [MW] [TWh/a]
ALnon-excl. 9 0 2 0 11 65 0.2excl. 103 106 22 10 241 1,992 6.1
BiHnon-excl. 8 2 2 0 12 74 0.2excl. 76 157 47 13 293 3,208 1.2
BGnon-excl. 30 18 0 0 48 105 0.2excl. 182 94 2 6 284 1,071 1.7
FYROMnon-excl. 12 0 1 1 14 111 0.3excl. 76 48 12 4 140 938 2.2
GRnon-excl. 15 9 0 0 24 53 0.1excl. 211 133 6 0 350 951 1.8
MEnon-excl. 1 1 0 0 2 6 0.0excl. 12 57 11 10 90 1,371 3.3
RSnon-excl. 76 10 1 0 87 118 0.5excl. 627 100 17 11 755 2,149 9.0
Totalnon-excl. 151 40 6 1 198 531 1.5excl. 1,287 695 117 54 2,153 11,679 34.4
Source:EuroNatur/RiverWatch
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-28-
Fig.20:Shareofprojectsinexclusionandnon-exclusion zones in total capacity of EuroNa-tur/RiverWatchprojectlist
Source:EuroNatur/RiverWatch
4.2 Effects on overall hydropowerdevelopment
Potentially feasible projects in EuroNatur/River-
Watch non-exclusion zones represent in total a ca-
pacity of 531MW and an annual generation of
1.5TWh/a forall sevenSEEcountries.Comparedto
theoutputoftheexistingfleetofhydropowerplants
thiswouldcorrespondtoanincreaseincapacityand
generation,respectively,ofabout4%.Hence,without
consideringanyrefurbishmentmeasuresorcapacity
increases in existing hydropower plants the Eu-
roNatur/RiverWatch assessment of the ecological
feasibility of hydropower projects would de facto
stopany furtherdevelopmentofhydropower in the
sevenSEEcountries.
Asaconsequence,mostofthesevencountrieswould
notbeabletomeettheirNREAPhydropowertargets
– not to mention any hydropower target beyond
2020.OnlyinBulgariaandFYRMacedoniasufficient
projects in non-exclusion zones would be available
that2020NREAPtargetsforhydropowercouldtheo-
reticallybemet.ThisisshowninFig.21thatdepicts
the installedhydropowercapacity in theyear2017,
the capacity of “non-exclusion”projects and thehy-
dropower targets for 2020 as derived from the na-
tionalNREAPs.Onecanclearlyseethatfeasiblepro-
jects would only provide very limited new hydro-
powercapacitiestothealreadyinstalledcapacitiesin
the seven SEE countries and for most countries a
significantgapbetweenNREAPtargetandthefeasi-
bleprojectpipelinewouldremain.
Fig. 21: Installed hydropower capacity 2017,capacity additions EuroNatur/RiverWatchprojectlistandNREAPtargets
Source:ENTSO-E,EuroNatur/RiverWatch,NREAPsofcountries
However, even if hydropower plays the most im-
portant role in the short-term renewable energy
targets in all of the seven countries exceptBulgaria
andGreecehydropowerwillnotbeenoughtoputthe
SEEregionontracktowardsalow-carbonelectricity
system. In the last seven years the share of hydro-
power in the total electricity consumption of the
seven SEE countries was in a range between 16%
and 25%. Even if an implementation of all projects
from the EuroNatur/RiverWatch list would double
theshareofhydropowerinthesevenSEEcountries
other renewable energy sourceswould still need to
provide themajority of green electricity if the elec-
3% 2%9% 11% 5% 0% 5% 4%
97% 98%91% 89% 95% 100% 95% 96%
AL BA BG FYRM GR ME RS allexclusionzones non-exclusionzones
2,0201,656
2,340
676
2,700
660
2,395
65
74
105
111
53
6
1182,3242,208
2,424
750
2,951
826
2,662
AL BiH BG FYRM GR ME RS
[MW]
"non-exclusion"projectsEuroNatur/RiverWatchinstalledcapacity2017(excl.pumpedstorage)NREAP2020target(excl.pumpedstorage)
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-29-
tricity sector were decarbonized. At national level
there are certainly some differences, i.e. in Albania,
BosniaandHerzegovinaandMontenegrothepoten-
tialadditionalgenerationoftheprojectswouldallow
atleastonanaverageannualbasisa100%supplyof
thecountrieswithelectricityfromhydropower.
Incontrast,forBulgaria,FYRMacedonia,Greeceand
Serbia the listedprojectswouldonlyprovide a lim-
ited contribution to close the gapbetweena supply
withelectricityfrommainlyrenewableenergiesand
the consumption. In Fig. 22 this situation is shown
forthesevenSEEcountriesbymeansofthegenera-
tion from renewable energies and the electricity
consumption in 2017. Additionally, the potential
generation from “non-exclusion” and “exclusion”
projects according to the EuroNatur/RiverWatch
projectlistisrepresentedinFig.22(notethatthebar
ofprojectslocatedinnon-exclusionzonesiscompar-
ativelynarrowformostcountriesandthereforediffi-
cult to see). However, it should be noted that the
seasonal and yearly fluctuations of electricity gen-
eration from hydropowerwould inmost cases re-
quire other technologies and/or a strongly inter-
connected power system to provide sufficient re-
serve capacity and complementary generation, re-
spectively, in case of lowwater levels. Thismeans
thatagenerationportfoliothatonlyreliesonasin-
gletechnology(i.e.hydropowerwithoutmajorsea-
sonal storageas for example inNorway)couldnot
beconsideredasarobustgenerationportfoliofrom
a security of supply perspective. Therefore the ex-
pansion of wind, solar PV and biomass in the SEE
region may not only be considered as “the second
bestrenewableoption”inthecaseoflimitedremain-
inghydropowerpotentials but as a reasonable con-
tributiontoarobustlow-carbongenerationportfolio.
Consequently, a smaller than generally anticipated
expansionofhydropowerwouldnotnecessarilyhave
a negative impact on the development of a genera-
tionportfoliobasedonrenewableenergies.However,
the development of a robust low-carbon portfolio
thatequallyconsidersenvironmental,economicand
security of supply aspects would require a more
detailed analysis. The existing stock of hydropower
plants intheSEEregionprovides inanycaseavery
goodstartingpositionforsuchadiversifiedportfolio.
Fig. 22: Electricity generation from renewables and share of renewable energies in total electricityconsumption2017aswellasannualgenerationofprojectsinexclusionandnon-exclusionzones
Source:ENTSO-E;EIA,AKOBandAEAforAlbania,EuroNatur/RiverWatch
7.1
12.6
34.4
7.2
51.9
3.4
39.6
0
10
20
30
40
50
Albania BiH Bulgaria FYRM Greece Montenegro Serbia
[TWh/a]
hydropower* wind solar biomass&other projects"non-exclusionzones"* projects"exclusionzones"* consumption*calculationbasedonaverageutilization2011-2017
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-30-
4.3 Alternative renewable energysources
The EuroNatur/RiverWatch classification of hydro-
powerprojectswoulddefactomeantheendforthe
further expansion of the use of hydropower in the
SEEregion.Hence,otheralternativerenewableener-
gy sources, namely wind, solar PV and biomass,
wouldneedtosubstitutethenotrealizedhydropow-
er generation if renewable targets remained un-
changed.However,forsuchashiftfromhydropower
to other renewable energy sources their potentials
wouldneedtobeenoughtoprovidetheadditionally
requiredcapacities.
InthiscontextitcanagainbereferredtotheIRENA
report on cost-competitive renewables potential
acrossSouth-EastEurope.Evenifrenewablespoten-
tialsmay differ between individual publications the
IRENA report provides at least a consistent set of
economic and technical potentials of hydropower,
wind,solarPV,biomassandgeothermalforallcoun-
triescoveredinthisstudyexceptGreece[11].Corre-
spondingly,economicoradditionalcost-competitive
potentials of wind, solar and biomass for Greece
were derived from other sources ([22] and [23]).
FurthermoretheIRENAreportdefinesdifferentsce-
narios to assess the cost-competitive or economic
potentials to consider uncertainties about today’s
and future capital costs as well as expected invest-
ment cost reduction of renewables in the future.
Except forhydropower, thereportprovidesaband-
width of economic potentials for the years 2016,
2030and2050.However, for simplicityaconserva-
tive approachwas applied, i.e. in the followingonly
theaverageofthebandwidthofthecost-competitive
potentials in the year 2030 is taken into account.
Hence,itcanbeexpectedthatinalong-termperspec-
tive (>2030) the economic potentials of especially
windandsolarPVwillbehigher.6
6 Forageneraldefinitionofrenewablepotentialspleaserefertosection3.1Technicalandeconomichydropowerpotentials.
Fig. 23 depicts the additional cost-competitive and
technical potential for hydropower, wind, solar PV
and biomass for all seven SEE countries – Fig. 24
provides the same information on a country level.
Additionally, the electricity generation and demand
in 2017 as well as the projected demand in 2020
(“efficiencyscenario”fromthecountry’sNREAP7)are
shown in both figures as a benchmark. Please note
that forGreecenoup-to-date technicalpotentialsof
wind, solar and biomass are available. Hence, for a
completepicture of all seven countries as shown in
Fig.23 it isassumedthat the technicalpotentialsof
wind, solar and biomass approximately correspond
totheeconomicpotentials.
Fig.23:Generationfromrenewables,electrici-tydemandandpotentialsof renewableener-gysourcesforallsevenSEEcountries
Source:IRENA,ENTSO-E,Dii,NREAPsofcountries
7 TheNREAPsconsidertwoscenariosforthedevelopmentoftheenergydemand - the “referencescenario”and “efficiencysce-nario”.The“referencescenario”takestheenergyefficiencyandenergy savingmeasures into account that have already beenimplementedbefore2009(i.e.businessasusual). Incontrast,the “efficiency scenario” considers additionalmeasures to beadoptedafter2009inordertoimprovetheenergyefficiency.
33.6
5.1
6.6
37.4
60.9
163.1
13.9
98.5
67.4
179.9
36.0
162.1178.3
Hydro* Solar Wind Biomass
[TWh/a]
AllsevenSEEcountries
additionalcost-competitivepotential
generation2017
technicalpotential
electricitydemand2017
electricitydemand"EfwiciencyScenario"NREAP2020*calculationbasedonaverageutilization2011-2017
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-31-
Fig.24:Countryspecificgeneration fromrenewables,electricitydemandandpotentialsofrenewableenergysources
Source:IRENA,ENTSO-E,Dii,NREAPsofcountries
6.2
7.0
3.7
11.9
2.7
15.6
3.7
13.7
11.27.1
8.1
Hydro* Solar Wind Biomass
[TWh/a]
Albania
5.2
9.4
4.1
24.4
2.8
24.5
4.1
26.3
6.2
12.614.5
Hydro* Solar Wind Biomass
[TWh/a]
BosniaandHerzegovina
3.8
1.4
1.5
0.3
4.8 8.9
46.4
3.1
13.4
10.1
52.9
6.3
34.436.6
Hydro* Solar Wind Biomass
[TWh/a]
Bulgaria
1.6
0.2 0.0
2.1
2.2
5.5
5.5
2.2
7.7
0.3
7.2
9.1
Hydro* Solar Wind Biomass
[TWh/a]
FYRMacedonia
5.2
3.7
4.8
0.3
6.8
31.7
20.6
0.9
15.0
57.8
68.5
Hydro* Solar Wind Biomass
[TWh/a]
Greece
1.6
0.1
2.9
1.1
6.1
0.2
6.6
1.1
6.5
0.7
3.4
4.9
Hydro* Solar Wind Biomass
[TWh/a]
Montenegro
10.04.5
9.2
48.2
4.1
18.0
9.3
52.4
10.4
39.636.6
Hydro* Solar Wind Biomass
[TWh/a]
Serbia
generation2017
additionalcost-competitivepotential
technicalpotential
electricitydemand2017
electricitydemand"EfwiciencyScenario"NREAP2020
*calculationbasedonaverageutilization2011-2017andexcl.pumpedstorage
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-32-
§ Albania: The already installed hydropower ca-
pacities with an average output of 6.2 TWh/a
canserveabout90%ofthecountry’sactualelec-
tricity demand, i.e. the remaining economic hy-
dropowerpotentialsof7.0TWh/awouldnoton-
lyallowAlbaniatoserveitsdemandgrowthwith
additionalhydropowercapacitiesbutalsotobe-
comeanetexporterofelectricity.However, the
strong fluctuations of annual hydropower gen-
eration in the past years have proven the vul-
nerabilityofapowersystemthatonlyrelieson
onetechnology.Hence,evenwithoutaconsider-
ation of ecological aspects for an expansion of
hydropower – as for example proposed by Eu-
roNatur/RiverWatch–amuchstrongerfocuson
othertechnologies ishighlyrecommendedfrom
anenergyeconomicpointofviewinordertodi-
versify Albania’s generation portfolio. Since the
country has considerable solar, wind and bio-
masspotentialsof in totalalmost20TWh/aAl-
bania could perfectly diversify its existing hy-
dropower portfolio with other renewable tech-
nologiesandhence,maintain itspositionas the
only countrywith a carbon free power genera-
tionfleetintheSEEregion.However,theattrac-
tive potentials of other renewable energy
sourceshaveyetneitherbeenreflectedinthein-
stalled generation capacity nor in the country’s
renewable targets. Albania’s NREAP only con-
siders40MWofnon-hydrorenewablesofwhich
nonehasbeen implementedso far.Though, the
Ministry of Infrastructure and Energy recently
launched the selection process for the develop-
ment and construction of the largest solar PV
plant in the regionwithan installed capacityof
50MW[6].
§ Bosnia and Herzegovina: Hydropower covers
currently about 40% of the country’s electricity
demandof12.6TWh/aandtheeconomichydro-
powerpotentialof9.4TWh/awould inprinciple
providetheremaining60%oftheactualelectrici-
ty demandplus an additional potential for a de-
mandgrowthofabout15%.However,duetothe
unavoidableseasonalandyearlyfluctuationssuch
a “full supply”with electricity from hydropower
wouldonlybepossibleonanannualbasis ifwa-
tersupplywereonoraboveaverage.Hence,from
a portfolio perspective additional hydropower
capacities without storage options (i.e. reser-
voirs)mayonlydelivera limitedcontribution to
thecountry’ssecurityofsupply.SinceBosniaand
Herzegovina has not only considerable hydro-
powerbutalsoacombinedsolar,windandbio-
mass potential of about 30TWh/a the power
generationofprojects thatare located inexclu-
sionzonesasdefinedbyEuroNatur/RiverWatch
(1.2TWh/a)couldinprinciplebesubstitutedby
other renewable technologies. This would not
onlyallowthattheoverallrenewabletargetsare
met evenwithout anymajor hydropower addi-
tionsbutwouldalso furtherdiversify the exist-
inggenerationportfolio.However,eveniftheat-
tractive potentials of other renewable energy
sourcesaretosomeextendincludedinthecoun-
try’s NREAP targets the actual expansion of re-
newableenergies in theelectricitysector isstill
solelyfocusedonhydropower,sinceonlyasmall
portion of no non-hydro renewables has been
implementedsofar.
§ Bulgaria:With an average annual generation of
3.8TWh/a hydropower provides about 10% of
theelectricitydemandof34.4TWh/a.Evenifthe
country still has a considerable remaining eco-
nomicpotential of 4.8TWh/ahydropower alone
wouldbyfarnotbeabletoaccomplishanenergy
transition inBulgaria.Hence, the countryhasal-
readyexperiencedanemergingtrendtowardsso-
larPV,windandbiomasswithacombinedgener-
ation of 3.2TWh/a in 2017. Furthermore, the
available additional potentials of these technolo-
gies are very promising (>50 TWh/a), i.e. the
country’srenewabletargetscouldinprinciplebe
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-33-
achievedifhydropowerprojectsthataresituated
in EuroNatur/RiverWatch exclusion zones
(1.7TWh/a)werenotimplemented.
§ FYR Macedonia: With an average output of
1.6TWhtheinstalledhydropowercapacitiespro-
vide about 20%of the actual electricity demand
of7.2TWh/a.Eveniftheremainingeconomicpo-
tential of 2.1TWh/awould in principle increase
theshareofhydropowerinthedomesticdemand
toabout50%asignificantexpansionofotherre-
newableenergysourceswouldberequiredinthe
long run to further decarbonize the country’s
generation system. The economic potential of
wind and solar of together about 8TWh/a is in
principle sufficient to deliver the required addi-
tionalrenewablegenerationforafossilfreeelec-
tricity system in FYR Macedonia. However, it
wouldbechallengingifwindandsolaradditional-
lyhadtosubstituteEuroNatur/RiverWatch’s“ex-
clusion”projectsof2.2TWh/a.Thiswouldespe-
ciallybethecaseifdemandincreasedasassumed
in the FYR Macedonia’s NREAP scenarios. How-
ever, thecountry’sexpectation forelectricityde-
mand growth seems to be quite progressive, i.e.
thecountryshouldinprinciplebeabletoachieve
a carbon free generation based on domestic re-
newableenergysources.
§ Greece: Hydropower provides currently
5.2TWh/a or about 10% of the overall Greek
electricity demandof some58TWh/a (intercon-
nected system and NIIs )8. Even if Greece has a
considerable additional economic hydropower
potentialof6.8TWh/a, the countrywill strongly
depend on other renewable sources to provide
the required contribution to the EU energy and
climatetargets.Though,Greecehasalreadyexpe-
rienced a remarkable trend towards solar PV,
8 ENTSO-EpublishesdatafortheinterconnectedGreekelectrici-ty system but does not cover the non-interconnected islands(NIIs).Theelectricitydemandoftheinterconnectedsystemin2017 was about 52TWh/a [5] and of NIIs in 2016 about5,6TWh/a[24].
windand tosomeextendbiomass.Theso-called
newrenewablescurrentlydeliveranannualgen-
erationofabout8.8TWh/aandthusalreadysig-
nificantly more than hydropower. However, the
remaining potentials of domestic renewable en-
ergysourcesofabout50TWh/awouldonlyallow
acompletesubstitutionoffossilgenerationifthe
further demand growth can be limited. In this
context thepossible contributionofhydropower
projects that are located in EuroNatur/River-
Watchexclusionzones(1.8TWh/a)wouldbera-
therlimited.
§ Montenegro: Hydropower covers currently
about50%ofthecountry’selectricitydemandof
3.4TWh/a.Montenegrohasaremainingeconom-
ichydropowerpotentialof2.9TWh/athatwould
allow in principle the full coverage of the actual
demand and in addition a demand growth of
about30%.However,asalreadydiscussedforAl-
baniaandBosniaandHerzegovinatheunavoida-
bleseasonalandyearlyfluctuationsofwaterlev-
els in the rivers would only allow a full supply
based hydropower on an annual basis and not
throughoutthewholeyear.Hence,fromaportfo-
lio perspective additional hydropower capacities
withoutstorageoptions(i.e.reservoirs)mayonly
deliveralimitedcontributiontothecountry’sse-
curityofsupply.SinceMontenegrohasnotonlya
considerable hydropower but also a combined
solar, wind and biomass potential of about
7TWh/a sufficient non-hydro resources are in
principle available to significantly increase the
shareofrenewableenergiesintheMontenegrin
electricity system and hence, to diversify the
generationportfolio. Furthermorewindand so-
lar potentialswould in principle allow the sub-
stitutionofhydropowerprojectsthatarelocated
in EuroNatur/RiverWatch exclusion zones
(3.3TWh/a).Montenegrohasalreadystartedto
exploit its wind potentials but will likely not
meet its NREAP targets for non-hydro renewa-
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-34-
bles of about 0.5TWh/a (90MW) in 2020.
Hence, theattractivepotentialsofwindand so-
lar could be put evenmore in the focus of the
country’senergypolicy.
§ Serbia: With an average annual generation of
10.0TWh/a hydropower provides about 25%of
theelectricitydemandof39.6TWh/a.Evenifthe
countrystillhassomeattractiveeconomicpoten-
tialsof4.5TWh/a,hydropowerwouldbyfarnot
beabletoaccomplishanenergytransitioninSer-
bia.However,wind,solarandbiomasshaveinto-
tal an economic potential of 60TWh/a, i.e. in
principleitwouldbepossibletofullydecarbonize
thecountry’spowersectorwithdomesticrenew-
able energy sources. In this context wind, solar
andbiomasspotentialswouldalsobesufficientto
compensate the potential generation of
2.1TWh/aofthosehydropowerprojectsthatare
located in exclusion zones as defined by Eu-
roNatur/RiverWatch. However, the required de-
velopmentofnon-hydrorenewableshasjustbeen
started, even if Serbia’s NREAP targets would
foreseeanexpansionofwind, solarandbiomass
toalmost2.0TWh/a(650MW)by2020.
In total, the seven countries covered in this study
haveatechnicalpotentialofwind,solarPVandbio-
massof almost300TWh/aandaneconomicpoten-
tialofabout240TWh/a.Thispotentialdoesnotonly
significantly exceed the remaining economic hydro-
power potential of 37TWh/a but also exceeds the
currentelectricitydemandofallcountriesthatisnot
yetcoveredbyrenewablebyafactorof2.Hence,the
regionwould in principle have sufficient non-hydro
renewable potentials for a sustainable transfor-
mation of the electricity sector. Though, non-hydro
renewables have only been playing in Bulgaria and
Greecearelevantrolesofar.TheotherfiveSEEcoun-
tries are either not on track with their non-hydro
NREAP targetsorhave evennot adequately consid-
eredwind,solarandbiomassintheirenergypolicies
sofar.
It is notable that the power sector in the Western
Balkan countries has been suffering not only from
comparativelyhighgridlossesduetoaninefficient
transmission and distribution grid but mainly due
tonon-technical lossesfrompowertheftsandnon-
collections(e.g.[25]).Hence,toaddresstheseissues
the governments has launched energy sector re-
forms, which have already significantly reduced
technicalandcommercialgridlossesintheWestern
Balkan. However, compared to other European
countries losses are still high and additional
measures will need to be implemented to further
increase the sector’s efficiency and hence reduce
the need to exploit the still available but limited
hydropowerpotentials.
However,besidesthequestionofsufficientpotentials
astrongershiftofenergypolicies fromhydropower
to other renewable energy technologies would also
have to be evaluated in terms of its effects on e.g.
security of supply, grid integration and the overall
costs of energy transition. Especially security of
supplycanbecomeamajorissueifseasonalfluctua-
tionsofhydropowerandtherelativelylargeyear-to-
yeardifferencesofhydropower’scapacityfactor(i.e.
full load hours) threaten a 24/7 electricity supply.
Additional hydropower capacities without storage
options (i.e. reservoirs) may only deliver a limited
contributiontothecountry’ssecurityofsupply,ifthe
generationpatterndoesnotsignificantlydiffer from
theexistingpowerplants(which is typicallynotthe
case).Hence,astrongerfocusonalternativerenew-
able technologieswouldnot only relief somepres-
sure from so far untouched river stretches but
wouldalsodiversify theregionsgenerationportfo-
lioandhence,makeitlessvulnerabletoe.g.season-
al and yearly fluctuations of water runoffs. Such
considerations will most likely be of high im-
portanceinthecontextofclimate changeadaption
strategies, since climate change may have a severe
effectontherunoffsandthereforeelectricitygenera-
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-35-
tion from hydropower in the Balkan region (cf. e.g.
[26],[27]).
Withregard toeconomicsofhydropowercompared
to alternative renewable technologies the IRENA
report on cost-competitive renewables potential
across South-East Europe concluded that hydro-
powerisstillthemosteconomicallyviablerenewa-
ble energy technology in the region [11], i.e.wind,
solarandbiomasswouldstillhavesomecompetitive
disadvantages. However, non-hydro technologies
haveseenatremendousandpartlyevenunexpected
costreductioninthepastfewyearsandhavealready
achievedorwillprobablyachievesooncostcompeti-
tiveness with hydropower and fossil fuels, respec-
tively. For example, in its report “RenewablePower
Generation Costs in 2017” [28] IRENA provided a
globalperspectiveonthecostdevelopmentofdiffer-
entrenewableenergytechnologiesandshowedthat
especiallywindonshore and solar PVhavehad sig-
nificant cost reductions in the recent years (cf. Fig.
25). Today average LCOEs of wind onshore are al-
readyintherangeofhydropowerandalsoLCOEsof
solar PVwill soon catch upwith hydropower if the
trend continuous. In this context it should bemen-
tionedthatlarge-scalesolarPVplantsthathavebeen
brought to Europeanmarkets in 2018have already
shown cost structures significantly below the aver-
age IRENA numbers forwind and solar PV. For ex-
ampletendersforPVin2018resultedinanaverage
auctionprice of 4.33€ct/kWh inGermany [29] and
5.82ct/kWhinFrance[30],respectively.
Fig.25:Globalweightedaveragelevelizedcostofelectricity(LCOE)2010-2017
Hydropower Windonshore SolarPV Biomass
Source:IRENA[28]
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-36-
5 Conclusion
ThesevenSEEcountriescoveredinthisstudyhave
already an installed hydropower capacity of
12.5GW with an average electricity generation of
about34TWh/a.Inaddition,pumpedstoragepow-
er plants with a total capacity of 2.6GW are in-
stalledinBosniaandHerzegovina,Bulgaria,Greece
and Serbia. The remaining available hydropower
potentials add up to total economic potential of
12.8GW(37TWh/a)andatotaltechnicalpotential
of25,2GW(65TWh/a),respectively.Between2010
and 2017 about 1.7GW of additional hydropower
capacitieswereput intooperation,howeveranoth-
er1.4GWwouldberequiredtomeetthecombined
2020NREAPtargetsofthesevencountries.
Though, in all of the countries a large number of
hydropower projects have been announced that
wouldnotonlyeasilydeliverthemissingcapacities
toachieveNREAPtargetsbutwouldalmostdouble
the already installed hydropower capacities. Eu-
roNatur/RiverWatch identified almost 2.400 hy-
dropowerprojectswithanestimatedtotalcapacity
of 12.2GW and an annual generation of some
36TWh/ainthesevenSEEcountries.
The untouched river stretches do not only offer
attractivepotentialsfromenergyeconomicbutalso
from nature conversation perspective. Based on a
set of own criteria EuroNatur/RiverWatch applied
an ecological feasibility assessment of the hydro-
powerprojectsandclassified92%oftheprojectsor
96%ofthetotalprojectcapacityaslocatedinexclu-
sion zones. This means that the further develop-
mentofhydropowerintheSEEcountrieswouldde
facto be limited to the refurbishment and upgrade
ofexistinghydropowerpowerplantsbuthardlyany
newhydropowerstationwouldbebuilt.
Other renewable energy sources, namely wind,
solarPVandbiomass,provideahugetechnicalpo-
tential of almost 300TWh/a, i.e. almost twice as
highasthecurrentelectricitydemandof theseven
countries.Hence,wind,solarPVandbiomasscould
deliver enough opportunities to accomplish the
country’sNREAPtargetsandtotransformthecoun-
try’selectricity sectors intoapost-carbonworld in
the long-term. Wind, solar PV and biomass could
not only close the gap between hydropower and
demandbutalsosubstituteprojectsthatarelocated
in EuroNatur/RiverWatch exclusion zones. Addi-
tionally, a stronger focus on alternative renewable
technologieswouldmake the country’s generation
portfolios less vulnerable to seasonal and yearly
fluctuationsofwaterrunoffs,whichmaysignificant-
lyincreaseinthefutureduetotheimpactofclimate
changeontheprecipitationintheregion.
However, itmust alsobe taken intoaccount that a
completestopofallnewhydropowerprojectsdoes
notonlyseemtoberatherunlikelybutwouldalso
neglects the potential contribution of hydropower
to the management of the electricity system. Hy-
dropower can provide technology immanent ad-
vantages to the electricity system; especially if hy-
dropower plants are combined with a reservoir
they can provide flexible generation and ancillary
services. It is expected that flexibility in a power
system will considerably gain importance in the
future,iftheshareofvolatilegenerationfromwind
and solar increases. In this context hydropower
offersthepossibilitytobalancewindandsolarwith
electricityfromrenewableenergysources,i.e.with-
out any additional flexibility options such as
pumped storage, batteries, power-to-gas or load
management. Hence, amore differentiated classifi-
cationofhydropowerprojectsisrecommendedthat
wouldallowa transparentandequalconsideration
ofenergyeconomicandenvironmentalaspects.
TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-37-
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TheroleofhydropowerinselectedSouth-EasternEuropeancountries
-39-
7 Abbreviations
AEA AlbaniaEnergyAssociation
AL Albania
ANA AlbanianNuclearAgency
BG Bulgaria
BiH BosniaandHerzegovina
CGES CrnogorskiElektrtroprenosniSistemAD
EIA USEnergyInformationAgency
EnC EnergyCommunity
ENTSO-E EuropeanNetworkofTransmissionSystemOperatorsforElectricity
EU EuropeanUnion
FYROM TheformerYugoslavRepublicofMacedonia
GR Greece
GW Gigawatt
GWh Gigawatthour
HEDNO HellenicElectricityDistributionNetworkOperator
HPP Hydropowerplant
IHA InternationalHydropowerAssociation
IRENA InternationalRenewableEnergyAgency
LCOE Levelizedcostofelectricity
ME Montenegro
MWh Megawatthour
NIIs Non-interconnectedislands
NREAP NationalRenewableEnergyActionPlan
PV Photovoltaic
RS Serbia
SEE South-EasternEuropean
TSO Transmissionsystemoperator
TW Terawatt
TWh Terawatthour
USD USDollar