Nexus Assessment CH5: Co-optimizing Flow regulation

Prof. Mark Howells Youssef Almulla, Francesco Gardumi and Eunice Ramos Division of Energy Systems Analysis - KTH KEY CHALLENGES

1.Limited cooperation in the operation of hydropower dams. 2.Uncertainty on the impacts of hydropower expansion on the flow regime and downstream uses. 3.Environmental flow regulation and impacts on electricity production. 4.Energy poverty in the DRB. 5.Lack of investments in non-hydro renewable energy sources. 6.Slow implementation of energy efficiency policies. 7. Un-utilized Electricity Export potential. SUGGESTED SOLUTIONS

Suggested Policy Direction

Improving cooperation between the DRB countries on flow regulation SUGGESTED SOLUTIONS

Suggested Policy Packages: 1.Coordination in the operation of the hydro power plants in the DRB. 2.Cooperation to Mitigate the risk against Floods. 3.Environmental flow considerations. 4.Assessment of new hydro power plants projects. 5.Motivating the implementation of Energy Efficiency measures. 1. COORDINATION IN THE OPERATION OF HYDRO POWER PLANTS Suggested solutions/actions:

1. Better scheduling of hydro power plants operation.

2. Formal agreement on flow regulation.

3. Improve data sharing and intersectoral communication.

4. Unified and modern hydro- meteorological forecasting system.

5. Development and continuously updating forecasting models. Quantification of the benefits of (Co-)optimizing flow regulation

Approach

Developing multi-country model of the three riparian countries (BA, ME and RS) with the focus on Drina river basin, using the Open Source energy MOdeling SYStem (OSeMOSYS).

Drina Water – Energy Model (DWEM): Energy System Focus: HPP  Cost optimal electricity generation to meet the demand. Hydrological  Soft linking of water flow in electricity generation system. System SCENARIO DESCRIPTION

 Base scenario (BASE): representing the non cooperative operation of HPPs in DRB. Upstream HPPs are operated on a single unit base and those downstream are responding to their best.

 Cooperative scenario (COP): representing a cooperative planning and operation of all the hydro power plants in the basin.  Increased Trade (COP_TRD): explores the opportunities of improving interconnections and trade of electricity.  Energy efficiency (COP_EE): investigates the impact of implementing energy efficiency measures on the electricity generation mix. GAINS IN ELECTRICITY GENERATION (COP – BASE)

• Compare the Cooperative operation with non-cooperative scenario.

• Better cooperation allow for better water availability in the river.

• Reduce thermal generation and reduce the overall system cost. 2. COOPERATION TO MITIGATE THE RISK AGAINST FLOODS Suggested solutions/actions:

1. Improve cooperation through better emergency preparedness and response planning.

2. Properly operating hydro- meteorological monitoring and the early warning systems.

3. Comprehensive approach that covers: infrastructure, software, modeling tools and building human capacity. 3. ENVIRONMENTAL FLOW CONSIDERATIONS

Suggested solutions/actions:

1. Harmonise and enforce environmental flow legislation.

2. Effective monitoring of environmental flow consideration at different phases of projects.

3. Apply ICPDR guiding principles in the development of future hydropower projects and upgrading of existing ones. 4. ASSESSMENT OF NEW HYDRO POWER PLANTS PROJECTS Suggested solutions/actions:

1. Update estimates of hydropower potential in the DRB.

2. Revisit feasibility studies of new power plants with the current economic outlook.

3. Take advantage of the existing platforms to plan and coordinate future developments. 5. MOTIVATING THE IMPLEMENTATION OF ENERGY EFFICIENCY MEASURES Suggested solutions/actions:

1. Speed up transposition of relevant Energy Community-energy efficiency legislation.

2. Take advantage of the Energy Community - Energy Efficiency Task Force as a platform to discuss • Implementation of the Energy Efficiency Action Plans. • Prospects for increased financing for the energy efficiency measures implementation SCENARIO DESCRIPTION

 Base scenario (BASE): representing the non cooperative operation of HPPs in DRB. Upstream HPPs are operated on a single unit base and those downstream are responding to their best.

 Cooperative scenario (COP): representing a cooperative planning and operation of all the hydro power plants in the basin.  Increased Trade (COP_TRD): explores the opportunities of improving interconnections and trade of electricity.  Energy efficiency (COP_EE): investigates the impact of implementing energy efficiency measures on the electricity generation mix. ENERGY EFFICIENCY ENERGY EFFICIENCY

COP_REF COP_EE

160 45 160 45

140 40 140 40

emissions (Mt) emissions emissions (Mt) emissions 2 35 35 2

120 120

CO CO 30 30

100 100 Electricity generation (PJ) generation Electricity Electricity generation (PJ) generation Electricity 25 25 80 80 20 20 60 60 15 15 40 40 10 10

20 5 20 5

0 0 0 0

2019 2021 2025 2017 2018 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2017 2018 2019 2020 2022 2023 2024 2026 2027 2028 2029 2030 TOTAL Hydro TOTAL Fossil Thermal TOTAL Hydro TOTAL Fossil Thermal

TOTAL Non-hydro RES CO2 Emissions TOTAL Non-hydro RES CO2 Emissions Key Model limitations and future work

• This indicative analysis can be further improved with:

• Site specific data related to (electricity generation, electricity trade and transmission losses and targets, water flow ..etc)

• Clear vision about future projects (hydro, non hydro RE and thermal)

• The model is electricity driven which means it operates the system to meet the specified demand tacking into account water availability. For more hydrological focused insights, detailed hydrological modelling required. Drina Nexus Assessment CH5: Co-optimizing Flow regulation

Prof. Mark Howells Youssef Almulla, Francesco Gardumi and Eunice Ramos Division of Energy Systems Analysis - KTH Institutions

International Information coordination and and cooperation research Suggested Solutions (5Is)

Infrastructure Instruments SUGGESTED SOLUTIONS

Suggested Policy Direction

Improving cooperation between the DRB countries on flow regulation in the operation of hydro power plants, mitigation risks against floods, reducing the stress on hydro and thermal generation through the implementation of energy efficiency measures and non-hydro renewables. GAINS IN ELECTRICITY GENERATION (COP – BASE)

UVAC RIVER RIVER RIVER Uvac Potpec PIVA (213 MCM) (27.5 MCM) (880 MCM) Kokin Brod (250 MCM) Bistrica (7.6 MCM) DRINA RIVER Visegrad (161 MCM)

Bajina Basta (218 MCM) Zvornik (89 MCM) EXTENDED TRADE SCENARIO (COP_TRD) EXTENDED TRADE SCENARIO (COP_TRD) HOW WILL THE SYSTEM BENEFIT FROM ENERGY EFFICIENCY MEASURES? Model limitations and future work

• This indicative analysis can be further improved with:

• Validation of generation technologies list (operating and planned infrastructure, investment costs, variable & fixed costs, efficiency of power plants);

• Cross-border transfer capacities (including trade agreements, operating and planned infrastructure);

• Consolidated data on electricity demand (yearly and daily);

• Fuel prices for electricity generation;

• Transmission and distribution losses and updated/validation of targets;

• Non-hydro renewable energy targets after 2020;

• Updating the energy efficiency target after 2020.