Code: WBEC-REG-ENE-01 REGIONAL STRATEGY FOR SUSTAINABLE HYDROPOWER IN THE WESTERN BALKANS Final Report August 2018 IPA 2011-WBIF-Infrastructure Project Facility- Technical Assistance 3 EuropeAid/131160/C/SER/MULTI/3C This project is funded by the European Union Information Class: EU Standard formation Class: EU Standard The contents of this document are the sole responsibility of the Mott MacDonald IPF Consortium and can in no way be taken to reflect the views of the European Union. This document is issued for the party which commissioned it and for specific purposes connected with the above-captioned project only. It should not be relied upon by any other party or used for any other purpose. We accept no responsibility for the consequences of this document being relied upon by any other party, or being used for any other purpose, or containing any error or omission which is due to an error or omission in data supplied to us by other parties. 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REGIONA L STRA TEGY FOR SUSTA INA BL E HY DROPOW E R IN THE WESTERN BALKANS Final report Draf t V 4 Page 2 Contents List of abbreviations and symbols ............................................................................................. 6 List of tables ............................................................................................................................ 8 List of figures........................................................................................................................... 9 0 Preamble .......................................................................................................................... 10 1 Introduction...................................................................................................................... 13 1.1 Background .......................................................................................................... 13 1.2 EU-accession proc ess and relevant WB6-country obligations....................................... 14 1.3 Rationale for intervention ........................................................................................ 14 1.4 From a Master-plan to the Regional Strategy ............................................................. 14 1.5 Stepwise approach in Study implementation .............................................................. 15 2 Objective, purpose and results .......................................................................................... 15 2.1 Overall objective.................................................................................................... 15 2.2 Purpose ............................................................................................................... 15 2.3 Achieved results.................................................................................................... 15 2.4 Added value of the Study........................................................................................ 17 2.5 Study limitations .................................................................................................... 17 3 Past and present role of hydropower.................................................................................. 18 3.1 Number of HPPs ................................................................................................... 18 3.2 Installed capacities in existing HPPs......................................................................... 19 3.3 Dynamics of construction / commissioning of HPPs in the past ..................................... 19 3.4 Development of hydropower production over time (2001-2015) .................................... 20 3.5 Statistics of hydropower generation in WB6 (1971-2014) ............................................. 21 4 Hydropower potential in Western Balkans .......................................................................... 24 4.1 Utilised, additional (remaining) and total technical hydropower potential in WB6.............. 25 5 Prospe cts for hydropowe r de velopme nt in WB6 in the contex t of re gional ele ctricity marke ts 26 5.1 SWOT ................................................................................................................. 26 5.2 Hydropower on the regional electricity market ............................................................ 26 6 Hydrology and integrated water resources management ..................................................... 28 6.1 Introduction .......................................................................................................... 28 6.2 Hydropower status within water management ............................................................ 29 6.3 Hydrography of the WB6 region ............................................................................... 31 6.4 Activities undertaken .............................................................................................. 31 7 Climate change – effects on flood management and hydropower generation ........................ 33 7.1 EU policy in climate change .................................................................................... 33 7.2 Understanding of the relationships and impacts ......................................................... 34 7.3 Flood management................................................................................................ 35 8 Hydrologic data in the Western Balkans ............................................................................. 36 9 WFD framework for hydropower ........................................................................................ 36 9.1 Best practices to achieve the environmental objectives ............................................... 37 10 Environment considerations.............................................................................................. 38 10.1 Protected areas by river basin ................................................................................. 40 REGIONA L STRA TEGY FOR SUSTA INA BL E HY DROPOW E R IN THE WESTERN BALKANS Final report Draf t V 4 Page 3 10.2 Fish fauna analysis ................................................................................................ 43 10.3 Good practices recommendations ............................................................................ 44 10.4 Summary of environmental analysis – regional level ................................................... 45 10.5 Remarks and observations ..................................................................................... 46 11 Transboundary considerations .......................................................................................... 47 11.1 Background to transboundary issues ........................................................................ 47 11.2 International rights and obligations – an overview ....................................................... 47 11.3 Relevant EU Acquis provisions and EIA procedure for transboundary projects ................ 49 11.3.1 Overview and proposed action ............................................................................. 50 11.4 Objectives: principles and solutions .......................................................................... 51 11.5 Solving integrated water resources management problems.......................................... 51 11.5.1 Achieving hydropower consensus......................................................................... 51 11.5.2 Infrastructure..................................................................................................... 52 11.6 Ever changing transboundary relations ..................................................................... 52 12 Regulatory and institutional framework for hydropower development in WB6 region ............ 52 12.1 Comparative analysis of I.O.L.R. licensing procedures in WB6 ..................................... 54 12.1.1 Strategic planning documents .............................................................................. 56 12.1.2 Prefeasibility phase ............................................................................................ 56 12.1.3 Concession issuing ............................................................................................ 56 12.1.4 Water related acts .............................................................................................. 57 12.1.5 Location conditions ............................................................................................ 57 12.1.6 Environmental permitting..................................................................................... 57 12.1.7 Land use issues................................................................................................. 58 12.1.8 Construction permitting ......................................................................................