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Strategic Industry Roadmap

First Draft

Date: 10/03/2019Document No: WP4-DlRp-26Version: v1.3Status: Draft for CEP ReviewDeliverable No: D4.5Task Leader: ICOLD

The HYDROPOWER EUROPE Forum is supported by a project that has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement No 826010

POWERING EUROPE IN A SUSTAINABLE WAY

WP4-DlRp-26: Strategic Industry Roadmap Deliverable D4.5

DOCUMENT INFORMATION

Title Strategic Industry RoadmapLead Author Jean-Jacques FryContributors Anton Schleiss, Emiliano CoraDistribution HPE Team & CPE Members (Draft for CEP review)Document Number WP4-DlRp-26

DOCUMENT HISTORY

Date Revision Prepared by Approved by Description & status5/3/20 V1.0 JJF Initial first draft10/3/20 V1.3 JJF PMgT 1st draft for CEP review

ACKNOWLEDGEMENT

The HYDROPOWER EUROPE Forum is supported by a project that has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement No 826010

DISCLAIMER

This document reflects only the authors’ views and not those of the European Community. This work may rely on data from sources external to the HYDROPOWER EUROPE project Consortium. Members of the Consortium do not accept liability for loss or damage suffered by any third party as a result of errors or inaccuracies in such data. The information in this document is provided “as is” and no guarantee or warranty is given that the information is fit for any particular purpose. The user thereof uses the information at its sole risk and neither the European Community nor any member of the HYDROPOWER EUROPE Consortium is liable for any use that may be made of the information.

document.docx 2 March 2020


CONTENTS

Document Information.............................................................................................................2

Document History.................................................................................................................... 2

Acknowledgement................................................................................................................... 2

Disclaimer.................................................................................................................................2

Acronyms................................................................................................................................. 6

Summary.................................................................................................................................. 6

1 INTRODUCTION.................................................................................................................7

1.1 The global warming: the unprecedented global emergency.....................................7

1.2 The pioneering EU policy addressing climate challenge............................................7

1.3 The current contribution of Hydropower in the EU Energy system...........................9

1.4 The roadmap to the future opportunities and challenges.......................................10

2 OPPORTUNITIES, CHALLENGES AND R&I PRIORITIES......................................................10

2.1 Opportunities and challenges for Hydropower in the EU energy system................10

2.1.1 Advantages and disadvantages of Hydropower...............................................10

2.1.2 Social acceptance.............................................................................................11

2.1.3 New technological solutions for achieving higher operation flexibility............11

2.1.4 Expansion of storage........................................................................................11

2.1.5 Innovative environmental strategies for harsher operation regimes...............11

2.1.6 Climate resilience and mitigation of the impact of global warming.................11

2.1.7 Mitigating the impact of ageing and improving power plant and dam safety. .12

2.2 The technology, market and industry status and potential.....................................12

2.2.1 Technological state of the art...........................................................................12

2.2.2 The industry status...........................................................................................13

2.2.3 The market status.............................................................................................14

2.2.4 The market trend..............................................................................................15

2.3 The R&D priorities....................................................................................................16

2.3.1 Enhancing flexibility for safe energy supply......................................................16

2.3.2 Optimization of operation and maintenance....................................................16

2.3.3 Performance and resilience of equipment and construction materials............17



2.3.4 Performance and resilience of infrastructures.................................................17

2.3.5 Environmental-friendly solutions and social acceptance..................................17

2.3.6 Developing emerging storage and flexible concepts........................................17

2.3.7 Mitigating the impact of global warming on hydropower generation..............18

2.3.8 Cross sectional solutions & examples...............................................................18

3 ROADMAP TO IMPLEMENTATION...................................................................................18

3.1 Barriers to large scale deployment of all sizes of hydropower................................18

3.2 Hydropower for a better society..............................................................................19

3.2.1 Assessment of communities reluctance to develop new hydro sites...............19

3.2.2 Best practices in bridging the gap between the parties....................................25

3.3 Continuous improvement of the protection of environment..................................33

3.3.1 Implementation of eco-labels...........................................................................33

3.3.2 Protection of biodiversity.................................................................................35

3.3.3 Water quality and quantity...............................................................................36

3.3.4 Sediment management....................................................................................36

3.4 Funding Hydropower Research and deployment.....................................................37

3.4.1 Enhancing finance for hydropower investors...................................................37

3.4.2 Implementation of the RIA...............................................................................43

3.4.3 Application of the RIA to the technology advancement...................................44

3.4.4 Dissemination of the outcomes of the project.................................................44

3.4.5 Strengthen relationships with EC......................................................................45

4 REFERENCES....................................................................................................................47

TablesNo table of figures entries found.

FiguresFigure 1 The 3 pillars of the new EU electric system [ETIP SNET Vision 2050].....................8Figure 2 The levelized cost of electricity for projects and global weighted average values

for CSP, solar PV, onshore and offshore wind, 2010-2022 [IRENA2017]................9Figure 3 CO2 emission per energy (IDAE)...........................................................................34Figure 4 Eco-score of the main energy resources (IDAE)...................................................34

AppendicesAppendix A Functional Objectives and Associated Resources..........................................48



ACRONYMS

IRENA International Renewable Energy AgencyCO2 Carbon dioxideGW Gigawatt(s)GWh Gigawatt.hour(s)IEA International Energy AgencykW Kilowatt(s)kWh Kilowatt.hour(s)O&M Operation and maintenancePPA Power Purchase AgreementPSP Pumped Storage PlantPV Photovoltaic (solar)

SUMMARY

This document presents the outline of the Strategy Industry Roadmap, SIR. The SIR is the second deliverable, following the Research &Innovation Agenda of the HYDROPOWER EUROPE project, founded by the H2020 LC-SC3-CC-4-2018: “Support to sectorial fora (2 Hydropower)”.

It defines the structure of the document. According to the Grant Agreement, it addresses the non-technical barriers to hydropower deployment:

• understanding why communities support or reject hydropower projects;

• identify best practices in bridging the gap between involved parties;

• identify new financing sources for hydropower and pumped storage by overcoming the concern of investors.

This list, supplemented by the results of the workshops and online consultations, as well as the rest of the document, needs to be reviewed in the second Consultation Expert Panel meeting. Experts need to carefully consider all identified areas, evaluate their relevance, prioritise them, suggest promising new topics not included in the list and validate the final version of the document.



1 INTRODUCTION

1.1 The global warming: the unprecedented global emergencyIn 1992, the Union of Concerned Scientists including the majority of living science Nobel laureates, penned the “World Scientists’ Warning to Humanity” implored that we cut greenhouse gas (GHG) emissions and phase out fossil fuels, reduce deforestation, and reverse the trend of collapsing biodiversity.

The United Nations confirmed this unprecedented global emergency: “We face a direct existential threat…Our fate is in our hands.” Said António Guterres, the UN Secretary-General. “The world has never seen a threat to human rights of this scope… The economies of all nations, the institutional, political, social and cultural fabric of every state, and the rights of all your people, and future generations, will be impacted.” Insisted Michelle Bachelet UN Human Rights Chief.

We must stop the harm we are causing the natural world that is pushing other species to the point of extinction. If we don’t address the causes of climate change in time, communities across the world stand to simultaneously face multiple intensifying climate hazards that pose a broad threat to humanity.

To make a better world, there can be no renewal of hydropower without the demonstration that it is one of the best energies to limit global warming and without progress to protect environment and particularly biodiversity.

1.2 The pioneering EU policy addressing climate challengeEuropean Union policy has been the first one fighting global warming, courageously showing other countries the way to save the planet. The Energy Union Strategy has the ambition to achieve a low-carbon climate-resilient future in a cost-effective way and to develop the job employment.

The Roadmap for moving to a competitive low carbon economy in 2050 showed pathways for the EU to cut its domestic greenhouse gas emissions to -80% below 1990 levels by 2050 [EU 2018]. This competitive low carbon economy is supported by massive electrification within a new electric system.



The three pillars of the new electric system are:

1. Secure, resilient and reliable supply

2. Protected environment

3. Affordable and market based energy services

Figure 1 The 3 pillars of the new EU electric system [ETIP SNET Vision 2050]

The ground of these three pillars is expectations of new technologies in delivering on the Paris Agreement goals. This is well illustrated by the fact that the Agreement itself was flanked by the launch of Mission Innovation, complementing the Clean Energy Ministerial created during COP15 in Copenhagen (2009), two global inter-governmental initiatives aiming at accelerating clean energy innovation and making clean energy widely affordable [EU 2018]. This explains the priority of the H2020 research projects on Climate Change and energy transition.

However lower than expected costs for solar and wind energy sources (Figure 2) on the one hand and higher than expected challenges for the Climate Change on the other hand, have changed the perspective when looking at a future decarbonized energy system for the EU.

Energy storage emerges as a key enabling technology for addressing the flexibility requirements for integrating variable renewable electricity into the grid and for providing green electricity for electrified transport, industry and buildings sectors. It has to be also noted that deployment of some technologies (e.g. for electric vehicles or batteries) raise some concerns in terms of future supply of raw materials. These issues make the implementation of circular economy approaches even more desired. This current situation requires an updated analysis to elaborate a decarbonisation decarbonizsation strategy fully integrated within the Commission’s political priorities, notably: jobs and growth, further integration of the internal market, a fairer and more sustainable economy.



Figure 2 The levelized cost of electricity for projects and global weighted average values for CSP, solar PV, onshore and offshore wind, 2010-2022 [IRENA2017]

Hydropower, without representation in Brussels, has not often been mentioned or even neglected in the energy development perspectives until recently. To build a secure and reliable electric system with intermittent RES, Europe must to integrate the high storage and flexibility capacities of Hydropower into the current and future energy systems and to lead the development of the next generation of hydropower technologies, , efficiently and cost-effectively.

1.3 The current contribution of Hydropower in the EU Energy system

One of the best energy contributors towards a low-carbon climate-resilient future is hydropower. Hydropower has the best recovery of gain factor of primary energy. Although Europe is the cradle of hydropower, investments for hydropower decrease in Europe, due to (1) 66% of the economically feasible hydropower potential is used so far within Europe and to (2) the distorted and low prices of the European electricity spot market, while investments for wind and photovoltaic generation have increased sharply, triggered by favourable market support mechanism. Consequently, most of the current investments by the most important European hydropower stakeholders are made outside of Europe.

Moreover, due to environmental restrictions and legislations, it’s unlikely that Europe could see much more expansion especially due to the long and complicated approval procedures. For instance the current EU Water Framework Directive is not accepted on other continents.



Consequently, dialogue with civil society and European Commission is required to insert hydropower in regional development policies and to move to more hydropower generation or to harsher service conditions (due to the increasing intermittent generation from windfarms and PV-installations, water discharges from power plants should be larger more and more often to dampen grid fluctuations and to ensure grid stability and security of supply).

At the same time, in this difficult period, the European associations representing hydropower to the European Commission, namely the Hydro Equipment Association (HEA) and the European Small Hydro Power Association (ESHA), collapsed, leaving the industry isolated and without support. There are a lot of technical associations, but representation as one voice is missing for discussion with the European Commission or public authorities especially regarding further development and research needs in the hydropower sector.

1.4 The roadmap to the future opportunities and challengesHydropower in Europe is undergoing a great number of future challenges. To face this unique set-of-policy, environmental, societal, technological and market challenges, the hydropower sector needs to find novel approaches to future development in accordance with environmental and social demand.

A comprehensive roadmap is needed for the sustainable use of existing hydropower and the development of the untapped hydropower potential under environmental and socio-economic constraints.



2 OPPORTUNITIES, CHALLENGES AND R&I PRIORITIES

2.1 Opportunities and challenges for Hydropower in the EU energy system

2.1.1 Advantages and disadvantages of HydropowerHydropower is a renewable, low carbon, cheap, mature and long asset life energy, which provide regional development: local jobs, contribution to flood and drought protection, improvement of infrastructures and touristic attractiveness.

The key point for the next decades is that hydropower is a very efficient and flexible energy supply, which will be used to store and supply electricity generated by the other renewable sources, so providing an essential link for integrating them within the grid.

Barriers to large new deployment include limited unexploited potential (less than some 30%), a contested environmental and societal impact and distorted market conditions with low price for electricity.

Based on these advantages and constraints, the future opportunities and challenges for hydropower in the EU energy system are discussed in the following.

2.1.2 Social acceptance

People are not always aware of the benefits of hydropower. Misinformation regarding the actual environmental impact of large dams and other necessary structures needed for the development of large scale hydropower create further obstacles and social division among the stakeholders. The lack of a representative sectorial association in Brussels, dialogue with Non Governmental Organizations and communication campaign makes it difficult.

2.1.3 New technological solutions for achieving higher operation flexibilityContribution of new technological solutions is required to adapt existing hydropower infrastructures in view of increasing their efficiency of production and achieving higher operation flexibility.

2.1.4 Expansion of storageThe efficiency improvement of existing Hydro Power Plants (HPP) and Pumping Storage Plants (PSP) can be achieved by their expansion of storage and installed capacity to allow a more flexible operation to accommodate new and highly fluctuating demands. It requires



compliance with environmental requirements and long negotiations for solving conflicts of interests.

2.1.5 Innovative environmental strategies for harsher operation regimes The effects of HPPs new and harsher operation regimes on operation safety and on aquatic ecosystems have to be assessed and strategies to reduce these effects (e.g. by developing innovative strategies of environmental flow releases including artificial flood pulses and hydro- and thermo-peaking mitigation measures) have to be developed.

2.1.6 Climate resilience and mitigation of the impact of global warmingThe change of production potential due to effects of global warming, which are expected to impact water availability as well as the operation safety of structures in view of new natural hazards have to be anticipated and treated.

2.1.7 Mitigating the impact of ageing and improving power plant and dam safety

The average age of several dozens of thousand hydro power plants is around 60 years and approaches the expected service life of operation and generates fatigue of equipment and infrastructures. To face this ageing problem, new materials and new rehabilitation techniques can maintain plant efficiency and reduce the risk of operation malfunction or failure.

Civil society is increasingly demanding more security and a lower and lower probability of failure. New technologies for assessing and/or monitoring the state of hydropower infrastructures and for improving public safety in a significant way will improve social acceptance and civil society confidence in hydropower. Proper monitoring and diagnosis of the generation equipment will increase the effectiveness of operation and maintenance of hydropower.

2.2 The technology, market and industry status and potential

2.2.1 Technological state of the artHydropower is energy derived from flowing water. Hydropower is a very flexible power generation technology, which also will be used to balance and store electricity generated by the other renewable sources like wind and solar, so providing an essential link for integrating them within the grid. Moreover, hydropower is a renewable, very low carbon, mature and cheap technology.



The basic principle of hydropower is using water to drive turbines. Hydropower plants consist of two basic configurations: with dams and reservoirs, or without. Hydropower dams with a large reservoir can store water over short or long periods to meet peak demand. The facilities can also be divided into smaller dams for different purposes, such as night or day use, seasonal storage, or pumped-storage reversible plants, for both pumping and electricity generation. Hydropower without dams and reservoirs means producing at a smaller scale, typically from a facility designed to operate in a river without interfering in its flow. For this reason, many consider small-scale hydro a more environmentally-friendly option. The energy is generated by three main types of turbines corresponding to three ranges of head (Kaplan, Bulb or Straflo for low head; Francis for Intermediate to high and Pelton for high head; among other rare turbine types). The application range of three main types of hydropower turbines ranges from some kW to 800 MW installed capacity per machine.

The current technological progresses in hydro-mechanical equipment include: Increasing the efficiency of generation equipment above the current 85–95 %: the

average efficiency improvements that can be expected from refurbishment of about 50 years old machinery are in the order of 5 %.

Enhancing the control capacity of pumps for PHS through variable speed. Developing machines with no oil leaks Creating fish friendly machines.

Seven main drivers are pushing the technological developments: need of high flexibility, rapid and steep ramps, hydraulic short circuit and low (zero)

capacity drive the developments of new PHS schemes; competition for equipment of new large hydropower plants on global market; rehabilitation and refurbishment of existing hydropower facilities in Europe with a

reduction of O&M costs; the need for the storage capability that would allow the electricity system to

accommodate additional renewable power from wind and other variable sources; digitalization; the need to reduce the environmental impact; the use of untapped hydro where water infrastructures have been originally built for

other purposes (drinking and waste water networks, irrigation canals, ship locks, a.s.o.)

the development of new innovative multi-purpose power plants which create win-win situations between flood protection, river and flow regime restoration, touristic attraction, water supply and energy production.

2.2.2 The industry statusEurope is the cradle of hydropower, and holds a recognized industrial position worldwide, leading to significant exports.



The market for SHP is accessible to numerous European small manufactures, leading to significant exports (SHERPA, 2008).

Three large European companies are leading the world market for hydro-mechanical equipment (Andritz Hydro, GE and Voith), recently Alstom was taken over by GE (USA). Together with 50+ other Europe-based companies they cover about 2/3 of the world market.

The large EU European operators (EDF, EDP, ENEL, ENGIE, ENBW, IBERDROLA, PPC, STATKRAFT, UNIPER, VATTENFALL, VERBUND) continue to invest heavily in hydropower projects outside of Europe

Many European engineering companies work besides rehabilitation and some new projects in Europe, mainly on new larges schemes outside of Europe (Artelia, Lombardi, ISL, AFRY (former Pöyry and AF), Sweco, MESY-Solexperts, Tractebel (former Lahmeyer), among others).

Many construction companies (Impregilo, Salini, Skanska, Strabag, Vinci, Walo, among others) acting as civil partners or even as EPCs.

Many manufacturers provide special equipments, new materials and treatment (ABG, Bauer, Carpi, Hydroplus, Siemens, Soletanche, among others).

2.2.3 The market statusThe global installed hydropower capacity at the end of 2018 was 1289 GW [IHA 2019]. The global hydropower generated 4278 TWh worldwide in 2018 (44% of 9669 TWh economic feasible potential and 27% of 15797 TWh technically feasible potential). In 2019, already about 133 GW of new hydropower plants were under construction and 308 to 617 GW installed capacity were planned (HP&D World Atlas 2019). The global potential is estimated to 7 000 TWh by 2050 (IEA 2012). The current hydropower generation accounts for 16% of the global electricity generation (Hydropower & Dams World Atlas 2019). This share is expected to increase to around 18 % in 2030 and up to 19 % in 2030 (IEA, World Energy Outlook in the Sustainable Development Scenario 2018).

The worldwide growth of pumped storage hydropower plants is considerable: it includes three to five fold of capacity of pumped storage hydropower plants (IHA).

The global number of very large dams (h>60 m) under construction worldwide is slowly decreasing by the time, from around 350 in the first decade of the 21th century to 284 in 2018. They are building the safety belt around the world, insuring food, water and energy (Nexus and SDG’s). In the same time, in Europe, it has decreased from around 35 before 2010 to 24 in 2018.

The economically feasible hydropower potential in Europe including Turkey is about 60% exploited (Hydropower & Dams World Atlas 2019). The total installed hydropower capacity at the end of 2019 is 200 GW (with Turkey 250 GW Hydropower & Dams World Atlas 2019).



Although, the hydropower capacity under construction in Europe was boosted by Fukushima accident (2400 MW in 2006, 9580 MW in 2012 and 4225 MW in 2018), the hydro market in Europe is currently rather in stagnation since the electricity prices at the European spot market are very low:

Production capacity in Europe is, compared to the low economic growth, too high (phase out of nuclear and coal will change this).

Cost of CO2 certificates are still very low. The actual market has been distorted due to the high subsidize and priority in the

merit order of new renewable energy as solar and wind.

There are already signs since 2018 that the electricity prizes at the European spot market becomes better for hydro. Nevertheless, at the moment, the investments are focusing mainly on PSP and rehabilitation of existing plants due to their age and for making them fitting the energy transition.

2.2.4 The market trend

In the next decades, the market will seek a balance between environmental and economic considerations.

The struggle against the global warming is becoming right now the top1 priority to save our societies and their economies. The use and the development of energies will be driven not only by cost but as well by their contribution to the struggle against global warming. The most efficient energies for decarbonization will be the priority. From this point of view, the most preferable source of energy or at least one of the most powerful and efficient vector for global decarbonization is hydropower.

Preservation of biodiversity and minimization of footprint will be the second priority of environmental objectives. From this point of view, hydropower will go on to integrate the best practices and the last research results for improving the biodiversity continuity.

Electricity prices will go on dropping according to the reduction of the solar and wind generation costs. If high subsidize of REN will be maintained, this trend may increase the difficulties to implement the untapped hydropower potential. By the way, the development of renewable and the grid regulation with flexibility and storage shall require more hydropower interactions and more Pumped Storage Hydropower plants. Hydropower will be either one of the most crucial pillars or the backbone of the future electric system.

Based on the responses received from the online consultation, the main drivers of hydropower development for the short term are:

Refurbishment, repowering, extension of their lifespan of old plants. Innovations for flexibility. Increase of efficiency by upgrading, digitalization and friction loss reduction



Concession renewal framework Mitigation of environmental impact.

The main drivers of hydropower development for the long term should be:

Improvement of public acceptance. Regulation with stable framework, green power price policy, taxes reduction,

subsidizing models. Construction of new pumped storage plants Increase of storage capacity Increase of installed capacity, new hydro and multi-reservoirs schemes associated to

other renewable energies and integrated to multipurpose water uses.

2.3 The R&D prioritiesThe hydropower Europe project has defined 8 key research directions supporting the role and the development of hydropower for providing an effective contribution to climate change adaptation, preserving the environment, and increasing societal resilience and local employment. These 8 directions provide the framework of the research directions of the Strategic Industry Roadmap.

The first 4 key research directions are focused on the short term, the last 4 key research directions are the top priorities for the long term.

2.3.1 Enhancing flexibility for safe energy supply

Currently market conditions and regulatory framework issues jeopardize the development of power generation and the increase of storage capacity. Consequently innovation on flexibility is the first short term priority ensuring hydropower Technology can support increased use of variable renewable generation resources. They are three main ways for enhancing flexibility of hydro-mechanical equipment [F.P. Montero 2019]: (1) Increased operation range; (2) increased ability to change power in real time for system balancing; (3) regulation capacity specially interesting in periods with high PV and wind generation, as in these moments, the regulation capacity is really scarce. For reaching these objectives, three lines of research have to be implemented: (1) runner design: robust design of turbine has to widen the cavitation-free region of the operation range and robust design of generator has to widen its lifespan; (2) power electronics: implementation of variable speed in existing turbine and pump units will speed up the power change; (3) digitalization (see 2.3.2).

On the level of the hydropower scheme, flexibility enhancement is strongly related to increase of installed capacity in the powerhouse and the reservoir capacity. Furthermore, if



a lower reservoir exists the installation pumps or reversible pump turbines strongly improves plant flexibility (IEA, 2019).

2.3.2 Optimization of operation and maintenance

Improvement and optimization of performance of operation by innovative design, predictive tools and condition monitoring (diversion intakes, pumped storage design, sediment control, etc…) will be highly improved by digitalization. Advances in instrumentation and remote control monitoring, on one hand investigating the effect of more frequent operation in turbine lifetime will provide feedback for turbine design and will improve predictive maintenance and on the other hand will improve models and simulation robustness for forecasting high precision generation. Virtual power plant managed by SCADA will optimize the generation of multi energy systems. Nevertheless, the risk of cyberattacks has to followed closely up.

2.3.3 Performance and resilience of equipment and construction materials

Innovative solutions of equipment for energy and environmental performance. Technology innovation can minimize increased wear and tear on hydropower and PSH machinery that results from increased penetrations of variable renewable generation resources, such as wind and solar, in power systems. New materials are required for tightness and abrasion resistance of hydraulic structures and cavitation and erosion-resistant materials (incl. innovative linings of powers waterways for reduction of friction losses).

2.3.4 Performance and resilience of infrastructures

Innovative solutions of structures for safety improvement and service life increase. Integrated structural risk-analysis models and innovative solutions for multi-hazard risk analysis.

2.3.5 Environmental-friendly solutions and social acceptanceFor the coming decades, the first challenge is not the technology but the preservation of the environment in order to gain public acceptance of the new generation of hydraulic projects. One of the best ways to gain public acceptance is to develop and spread out life-cycle analyses of the different electricity generation resources and storage solutions, in order to show the excellent recovery of gain factor of primary energy of Hydropower. The hydropower sector will need to develop knowledge in the social sciences and humanities to deepen public acceptance. Research on fish migration, sediment continuity and biodiversity has to improve the biological continuity (flow regime management, assessment of environmental flow release, innovative connectivity solution for fish and biodiversity protection and innovative sediment management technologies for sustainable reservoir



capacity and river morphology restoration. Finally, a useful tool is missing for providing a comprehensive guidance to the public: an environmental index rating the environmental acceptance and the footprint of any energy generation power plant.

2.3.6 Developing emerging storage and flexible conceptsFaced with the falling cost of solar and wind energy, the future of hydropower will be the coupling with the other energies to store their surplus production, to guarantee the flexibility and the security of the grid. Emerging concepts will be required to reinforce the competitive position of hydro in the decarbonized economy of the future. Development of innovative Pumped Storage technologies for storing intermittent renewable energies must be able to realize high efficiencies and enhanced performance, while minimizing environmental footprint , CAPEX to compete with new storage technologies and construction time: e.g. use of glacier retreat, multipurpose PSH, PSH at sea, PSH adding a new reservoir, twin dams, transformation of water conveyance system in PSH, coupling with other storage solutions in Hybrid Power Plants,…

2.3.7 Mitigating the impact of global warming on hydropower generationImprovement of resilience of hydropower to global warming is mainly related to storage capacity. Increase Hydropower’s Resilience to Climate Change is another long-term priority. Providing frameworks for assessing climate change impacts can improve the ability of hydropower projects to operate under resultant increases in variability (e.g., temporal and spatial changes in water availability or water use). Innovative concepts of hydropower infrastructure adaptation should be developed. A key challenge is the management of the increased sediment yield into reservoirs by developing new, innovative techniques and approaches.

2.3.8 Cross sectional solutions & examples

Finally, case studies or pilot projects integrating these various types of innovations would make it possible to demonstrate the technical and environmental efficiency of the new generation of hydropower.

3 ROADMAP TO IMPLEMENTATION

3.1 Barriers to large scale deployment of all sizes of hydropowerCommissioning of new hydropower capacity is years behind schedule [IEA 2020]. Remaining hydropower potential is significant, but new large power plants are facing social,



environmental and cost barriers. There are four major barriers to be overcome for the wide hydro deployment of all sizes of hydropower:

1. Understanding why communities reject new hydropower schemes.2. Bridging the gap between the parties: best practice in bridging the divide.3. Solving environmental issues related to water bodies becoming a significant concern

(EC, 2011).4. Finding finance and missing business models for storage, the whole renewables and

electricity market issues, by overcoming the concerns of investors.

3.2 Hydropower for a better society

3.2.1 Assessment of communities reluctance to develop new hydro sitesIn European Union, environmental issues are the first barrier to hydropower projects. However lack of investment, complex process of licensing and cultural heritage are, among others, barriers explaining that hydropower projects were abandoned.

3.2.1.1 Environmental issueDifferent kinds of conflicts can be noticed as illustrated by the examples in the following.

I. Some Hydropower projects were stopped in accordance with the national law on nature protection, based on the Water Framework Directive (WFD) and the Natura 2000 regulation,

- In Belgium, France and Germany, throttling and shutdown of turbines is required during downstream migration peaks of silver eels: e.g. practiced at Meuse, Dordogne, Main and Seine.

- In Austria, a number of measures have been realized to improve the ecological Status of Austrian Rivers, which causes generation losses. An overview of measures during the first cycle of river basin management plans can be found on website : https://oesterreichsenergie.at/der-nationale-gewaesserbewirtschaftungsplan-2009-umgesetzte-massnahmen-der-oesterreichischen-wasserkraft.html

- In Austria, the hydropower station Hainburger along the Danube, west of Vienna, was successfully prevented by protesters. Reason was mainly the ecological value of the affected area. Afterwards a National Park was established there. More info: https://austria-forum.org/af/AEIOU/Hainburger-Au-Besetzung/Hainburger-Au-Besetzung_english

- In North Macedonia, HPP Boshkov Most and HPP Lukovo Pole projects failed after complains from environmental activists although the World Bank explains its involvement in the project due to the importance of increasing Macedonia’s reliance on renewable energy.


https://austria-forum.org/af/AEIOU/Hainburger-Au-Besetzung/Hainburger-Au-Besetzung_english

https://austria-forum.org/af/AEIOU/Hainburger-Au-Besetzung/Hainburger-Au-Besetzung_english

https://oesterreichsenergie.at/der-nationale-gewaesserbewirtschaftungsplan-2009-umgesetzte-massnahmen-der-oesterreichischen-wasserkraft.html




II. However other projects were stopped due to the continued activity of environmental or local activists groups (development of a network, involvement of national and international NGOs, public campaigns and street protest/marches), despite the fact that they have obtained their environmental approval. For activists groups, Hydropower is automatically considered as deteriorating a situation. Hydropower is considered as the problem, not as a solution for existing (not hydropower related) problems in the river.

- In Spain, in Caleao, on the Nalon river, a new dam was projected since 1992 for water and energy supply, and for compensatory flows to maintain biodiversity (enhancing water quality for salmonids downstream). After its approval, the dam project continued to be much contested by ecological and conservationist associations because it would affect the Natural Park of Redes (Natura 2000, LIC, ZEPA, Biosphere Reserve) and several protected species within it. On May 11, 2018, the Asturias Parliament (Junta General del Principado) approved a Resolution for the Asturias Regional Government to officially renounce to the Caleao dam project in the Plan of Water Supply. For more info: https://amber.international/portfolio-item/river-nalon-spain/ https://amber.international/no-more-dams-on-the-nalon-river/

- In Western Germany, in 2012, Trianel planned to build (construction start targeted for 2016) the PSP Rur in the Eifel. Although the area is of special environmental value, environmental organisations had a positive attitude towards the project. However, there was a citizen initiative fighting against further project development. The initiative was worried about environmental impacts due to the construction of the upper basin, increased water level fluctuations at the lower Rursee lake and related impairments of leisure activities and riverbank ecology. In 2013 Trinael withdrew the project, also due to the difficult political and economic conditions for PSP. For more info: https://www.aachener-zeitung.de/lokales/eifel/energieversorger-trianel-hat-inzwischen-weitere-vorhaben-verworfen_aid-35563971 https://www.bund-nrw.de/themen/klima-energie/hintergruende-und-publikationen/speicher.

- in Germany there is a project on the Iller River between Ulm and Memmingen. The investor, Mr. Fontin, wants to develop a hydropower station and improve the river continuity, which is not ensured at the moment. Environmental NGOs sued him, but the court gave right to him. The environmental NGOs are still pushing to reviewing the project.

- Interestingly, in Germany It has been observed that local communities and local environmentalists do not oppose projects for small HPPs and even support them. It is often federal NGOs or environmental organizations that oppose the project and bring it to the public with very negative publicity.

- Vattenfall had an extension project that went to public referendum in the local community. The project would decrease the water in a small river. A wind power project was included to give some extras to the community, but all in all the referendum was a No, backed by national NGOs rushing in to support the No side.


https://amber.international/no-more-dams-on-the-nalon-river/

https://amber.international/portfolio-item/river-nalon-spain/


III. The third type of conflicts related to inter-basin water transfer has been not solved so far.

- In Greece, the HPP Messochora on the Acheloos River face considerable resistance from local and environmental groups. The civil and electromechanical works were finished in 2001 but impoundment of the reservoir and power plant commissioning are still pending after nearly two decades of hiatus. HPP Sykia, another part of the Acheloos diversion scheme, is practically abandoned. Part of the Civil Works is in place and its future remains uncertain. The main cause for its abandonment is its role as an impoundment structure necessary for the diversion of part of the water resources from the Acheloos basin to the prefecture of Thessaly in the Eastern part of Greece. A full redesign of the whole project of the diversion scheme of the Acheloos River is needed to transform this project from a one-way diversion scheme of water from Acheloos to the prefecture of Thessaly in a multi-basin water management scheme. In conjunction with the desired flexibility a transparent framework for the water management of the affected basin is also needed to curb down social resistance and to improve its environmental value. Although in theory this route of action seems promising, mistrust and animosity among the affected local societies make the realization of such a project difficult. A downgrade of this project to a simple large scale hydropower conventional reservoir stands a greater chance of realization.

IV. The fourth type of issues questions the efficiency of environmental legislations

Although most hydropower projects have been hindered for environmental reasons, there is no real appraisal of the environmental impact as a whole (birds, crawfish, ..) and mostly only fish-related arguments are used. The lack of ecological flow pathway is also a common argument to shut down plants; however, the calculation of this ecological flow is highly debatable. The argument often leads to the termination of old water rights (that should not be vulnerable as they are supposed to give legal security to the operator). Some national administrations aim at terminating these rights and they are quite successful in it. Owners warned against decommissioning of existing hydropower infrastructures without set and clear criteria or metrics for what is considered ‘effective’ or ‘marginal’.

Several small hydropower projects pointed towards prohibitively stringent and costly regulations regarding environmental protection, and further questioned some of the regulation’s efficacy. Certain structural solutions were pointed out to be cost-inefficient for very small projects, and therefore prohibitive.

3.2.1.2 Financing barrierIn Italy there are more than 10 hydropower and hydro projects that have been abandoned in the past 20-30 years or so, or that have been stopped, basically for lack of investments.



Several large hydropower projects in Romania, which are in various stages of execution, generally due to lack of funding, haven't been completed yet. For example, on the Siret River, the Accumulation of the Varfu Campului, works started in 1987, not yet completed.

Unclear economic perspectives for hydropower project, including high financial risks in long-term investments, are also barriers for the development of hydro projects. The change of the vision at the European level about the role of hydropower and reservoirs, based on a joint economic support at National and European levels, could represent a possible way to deal positively these problems.

3.2.1.3 Simplification and reappraisal of licensing processesIn Germany, the Atdorf PSP project in the Black Forest, would have been one of the biggest pumped storage power plant in Europe (1.4 GW and 13 GWh). It failed because of a mixture of missing social acceptance, environmental impact and missing business model. Besides economic issues, this project faced a lot of hurdles regarding planning laws. Approval regulations in Germany do not know "pumped storages", so every single part of the power plant had to be collected in an official approval of plans / planning approval (not very clear, issue to be further explored): environmental legislation (upper basin/pressure tunnels/tunnels for pipes), laws pertaining to water and waterways (lower basin as an artificial water body/use of water itself), energy law (deployment of transmission grid), waste/soil protection legislation (temporary dumpsites), building law (for buildings), road law (for new built roads) and many more (land use planning, state planning law, nature law, emission law, forestry law, hunting law,...). These complex allowances and authorizations had to be concentrated in one procedure which alone raised many legal questions and potential points of attack for lawsuits. 80 M Euro have been spent in 10 years and further 15-20 M Euro are estimated for additional planning costs (Sisyphos) (not clear, to further explored). This example shows that priorities for further hydropower deployment are: a) simplification of authorization procedures; and b) improving public perception/acceptance of hydropower.

In Germany, they are several examples of small hydropower plants that had to shut down, as the requirement for high environmental flows stopped the plants economic feasibility. In one case in Hessen, the allowance had faded out and in order to renew it there was the requirement to build a fish ladder. The municipality was pro hydro and wanted to support the operator and applied for a municipal promotion program at the state of Hessen. However, in order to get the support, this promotional program had as a requirement an existing allowance (but the allowance would only have been given if the fish ladder was planned and financed). Also demands for fish passes with tremendous costs (about 100.000 Euros/per meter head) are not bearable for operators. These demands have been made, though historically there had been a natural cascade at the site - so fish never had the



chance to migrate. There needs to be an objective appraisal of all pros and cons and of real local (historical) conditions!

In Germany, efforts regarding project development and implementation are slowed down due to the difficult political and economic situation for PSP (https://www.psw-heimbach.de/article/pumpspeicherwerk-stadtwerke-treten-auf-die-bremse/).

In Switzerland, several upgrading projects increasing installed capacity and reservoir volume by dam heightening have been abandoned due to concession renewal discussions not allowing recovering the investments which cannot be payed-back until concession end.

3.2.1.4 Limitations of generation due to multipurpose useIn the framework of the investigation carried out by ITCOLD, there are several examples of reduction of hydropower generation for the benefits of other uses. One of these is the case of Santa Giustina (Italy) Dam, where for a certain period of the year the reservoir is significantly emptied, in order to cope with possible emergencies caused by the floods of the Noce River.

In many countries, the use of reservoirs for touristic and recreation purposes limits the possibilities for level variation and power generation. in the approval procedure of one project of Schluchseewerk, the water management of the upper basin was limited for recreational use so that 60-70 GWh could be generated only instead of 133 GWh theoretically. In the same procedure, natural inflows were limited so they lost 15% of the generation capacity of the scheme.

3.2.1.5 Cultural heritageIn Portugal, the construction of one project had started but it was stopped due important archaeological findings. No mitigation measures proposed by the promoter had success. There was no political nor social acceptance to go on with the project. However, alternatives were studied, and an alternative hydropower scheme has been constructed more than fifteen years later.

3.2.1.6 Other casesEvery Hydropower-Project is a unique opportunity to keep in touch with civil society and to well understand the societal barriers in order to give keys for new projects. Companies and national agencies are invited to go on this inventory of issues from existing or new projects. This global evaluation is useful to clarify support or opposition from residents, other stakeholders of water use and NGO, on one hand in order to minimize these impacts and on the other hand to demonstrate the efficiency of current mitigating measures and show the newest research results.


https://www.psw-heimbach.de/article/pumpspeicherwerk-stadtwerke-treten-auf-die-bremse/)

https://www.psw-heimbach.de/article/pumpspeicherwerk-stadtwerke-treten-auf-die-bremse/)


These evaluations could be planned every year in the EU countries, promoting experience of the ITCOLD regional workshops, matching Dam owners’ pro-activity versus stakeholders’ perception. These regional workshops, under adequate administrative level, will explore and combat the specific barriers and will promote the uptake of hydropower. The negative and positive externalities of hydro generation will be fully acknowledged, transparent, and measurable. Past and future regional workshops will facilitate the dialogue and the intercommunication between two worlds that often have conflicts and opposite interests.

3.2.1.7 First feedback From the inventory of problems encountered by hydropower project developers, four types of situations differ and deserve different attention.

In the case that national and European laws protect a part of the site, the civil society requests the application of these laws. Legal mandatory actions "The Blueprint to Safeguard Europe's Water Resources" versus the "Water Framework Directive" are implemented. Investors need to rely on best environmental practices. A sustainable hydropower project with the necessary ecological measures needed at the site can be a long-term solution.

In cases where the project complies with legislation and has received its environmental licence, groups of environmental activists often take a dogmatic stance. Short-term discussion does not advance positions. Investors lack the dialectical tools to change the dogmatic position: life cycle analyses and comparison of the recovery factors of energy from alternative solutions.

In cases where the negotiation is lengthy because it involves stakeholders of equal strength, it is advisable that the discussion be framed by a national regulation that would be the result of negotiation at national level by high-level representatives of all stakeholders.

In the case of questionable legislation, there are indeed aspects of the law that leave room for negotiation and interpretation. This is the case for the ecological flow and ecological continuity. There is a lack of scientific work that could support these challenges and an organization that on the basis of this work would be in permanent dialogue with the European Commissioners.

Although some of the previous issues can be solved, it is difficult to imagine a "new deal" for the full exploitation of hydropower potential in Europe, since there are not only environmental and social barriers but economic barriers as well. Economic and environmental pressures will continue to close the least profitable and least



environmentally friendly plants. What can be reasonably expected in the future is to promote actions for the development of hydropower generation in connection with other renewable sources (wind and solar basically and hydrogen later), the protection of the environment and water supply.

3.2.2 Best practices in bridging the gap between the parties

3.2.2.1 Compile, disseminate and implement Best practices for investors

The purpose of this action is to identify best practices that have enabled top environmental and social performance or have been successfully applied for solving conflicts of interest ON environmental mitigation, and water management. Formalized cataloguing of best practices can enable more efficient public acceptance of hydropower and allow the industry to reduce the risk of investment. Compiling and disseminating methods and best practices from leading performers in all segments of the hydropower industry can drive improvements in hydropower performance. Identifying and disseminating best practices can help lead to successful energy, environment-related, and socio-economic outcomes of the hydropower regulatory process.

3.2.2.2 Increase awareness of European citizens A large number of respondents of the consultation pointed to a lack of communication and public awareness of the social, economic and potential ecological benefits of hydropower projects. The hydropower sector has the feeling that the value of hydropower is high and will get higher with the deployment of volatile Renewables. Benefits should be strongly highlighted. HPP should be seen as sustainable as they are! WB backs the sustainable development of hydropower.

1 Hydropower is key to reaching the Paris Agreement,2 HP is essential for increasing the integration of renewable energy 3 HP’s role in improving regional Integrated Water Resources Management

However a purely engineering approach is not sufficient in regard of the changes at stake: the hydropower sector needs to increase its capacity to adapt to the ever-changing social context and to climate change. This implies anticipating resources shortages, their collapse and the ripple effects it could have, but also social conflicts, that are themselves induced by climate change and economic issues. Water management and power generation are inherently complex topics. It is thus necessary for the public to be informed and taught about those changes, so that in time of public participation they are fully aware and able to undertake and address the issue. To make this happen, the hydropower sector needs to share knowledge and set participative standards, not only for the development of new projects but also for already equipped sites.



Educational and communication campaigns are fundamental to enhance social acceptance. The purpose is to disseminate objective information regarding hydropower as a key player in producing energy, ensuring grid stability and security, supporting PV and wind energies while minimizing global warming. Demonstrating and communicating that hydropower is a core renewable energy source can both increase public understanding and encourage inclusion of hydropower in clean energy planning and markets, as appropriate.

To increase the social acceptance, it is necessary to compile information into digestible formats that incorporating success stories and disseminate through all kinds of channels such as public meetings, public agencies, social media, websites, and fact sheets. There is a need for continuously repeating the key messages about the benefits of hydropower.

Highlight hydropower advancements made in addressing environmental considerations and existing environmental regulations. Technological advances, like fish friendlier operations and turbine designs, innovative screens and trash rack design etc., make both energy production and biodiversity conservation possible at the same time and need to be widely disseminated among the population.

Enhance Stakeholder Engagement and Understanding within the Regulatory Domain. Ensure all stakeholders have access to the knowledge necessary to participate effectively in planning, decision making, and regulatory processes will enhance the ongoing effort for individual hydropower projects to be designed and operated in as environmentally responsible a way as possible.

Evaluate positive externalities, which are usually ignored or only partly appreciated. Whereas negative externalities of operator’s activity are fully acknowledged, transparent, and measurable, indeed, the evaluation of the costs borne by operators is not, in general, matched by a similar evaluation of the corresponding benefits for the stakeholders. The investigations undertaken by ITCOLD cited in the previous point have individualized many best practices related to social-economic as well environmental aspects. ITCOLD has started since 2014 the organization of workshops "Dams and Territories" with the aim to establish with the stakeholders a better knowledge of the actions undertaken by dam owners to promote economically, socially and environmentally the territories where dams are located. At the same time, the workshops give the stakeholders the possibility to interact directly with dam owners. So far 6 workshops have been organized in Italy: Bolzano 2014, Catanzaro 2015, Bologna 2016, Rieti 2017, Genova 2018, Palermo 2019 (https://www.itcold.it/relazioni-e-atti/). Among others, good examples in Italy are Ridracoli Dam (owner: Romagna Acque) that supply water in Emilia Romagna region, the dams of the Valtellina area in Lombardia region (Owner: A2A).

Compile previous information and issue a report on success stories of improving hydro in respect to generation, respecting the WFD, including fish passage, and on compensation measures provided by hydropower plants and emphasizing the contribution of hydropower to optimize water reserves in a nearby future with water



scarcity, provide additional, stable and safe penetration of renewables, mitigate flood waves and protect local communities from floods, supply water for agriculture, development other activities, such as tourism, recreational and sport activities, transport, fish farming. Favourable life-cycle analysis and the sustainability of hydropower through mitigation measures are also important elements to stress.

Explain whether and why hydropower is or is not considered a renewable technology

Conduct a full inventory and analysis of renewable energy incentives in each evaluated country member or non European country or organization and their impact on the growth of technologies.

Disseminate results of tools or surveys explaining the future interests and role of hydropower (life cycle analysis, recovery factor of energy, analysis of incentives,…)

Describe the increasing role of mitigation of global warming impacts: water availability, drought and flood control or conservation of freshwater habitats.

Finally, a common set of social and environmental guidelines for advancing hydropower where appropriate should be developed at a European level.

For new projects, suggestions ranged from:

Dialogue should take place more often, putting all affected parties on one table and finding a win-win solution. Investors/contractors and the local communities, which usually are on opposite sides, need to form a partnership based on trust and cooperation and work together to find acceptable solutions for both parties. Vattenfall have built trust among the reindeers’ herders through communicating with their representatives and getting to know them. Also listening and understanding their situation builds trust. The local community, non-governmental organizations and other actors involved in the negotiation process need to interact with all stakeholders involved in the project approval and implementation. The public administration should enforce a balanced discussion with all stakeholders aim at establishing a fair allocation of costs and benefits. The need for electricity and a full picture of a future energy system is basically needed. Representatives of water resource, as well as public bodies responsible for the environment, energy, economic development, social and cultural issues (if archaeological sites are affected), need to explain in detail all the stages of construction and exploitation of the hydropower project. Thus, the population will be aware of all relevant issues and take informed decisions. In a recent project developed by EDP, open sessions in the municipalities have taken place to clarify all the issues associated to the projects, and visits to the works have been implemented, in order to obtain a true confidence climate with local population. The results were very positive. It is important to keep relations with local communities not only in the design phase, but also in the management of an existing hydropower fleet.



The best way to deal with social issues in hydropower projects is to inform affected people at a very early stage of the project (10 years ahead) and give enough room for participation of at least everyone who feels affected. Awareness raising campaigns to tackle misconceptions regarding hydropower projects (particularly large-scale projects) and inform the general public and other stakeholders about the benefits and the shortcomings of these projects, always in comparison with other renewable or not renewable technologies, are needed. Adoption of public consultation procedures that are well defined and transparent involving all the relevant stakeholders well in advance should be sought. Comprehensive studies with respect to the potential of each country in developing its hydropower potential in a technologically agnostically manner should be developed or updated. These measures should be as transparent as possible and a balance of power among the involved stakeholders should be ensured, thus making these projects socially acceptable. Possible tools to be employed include "round tables", ecological support groups, informative meetings, counselling.

Social acceptance is possible only by satisfying clear interest of all interested social groups and, above all, of the local communities. Local communities feel that rivers belong to them and, although this is not true from a legal point of view, it shall be seriously considered. Usually communication is necessary between investor and civil society to reach compromise between investor goal to build HPP and nearby citizen for compensation of their needs and improvements of their live environments (building of roads, schools etc.). Other compensation measures can include the establishment of a local development agency funded by the operation of the project or the construction of museum centers to preserve the memory of the submerged areas. In the large project "Yadenitsa" for extension of the lower reservoir capacity of "Chaira" PSP, the local population supported the project implementation due to the long-term job possibilities the project offers. Hydropower companies can train and hire local people for management and maintenance jobs. The benefits of construction work are short-term, but jobs relating to maintenance and management can bring long-term benefits and these should be placed in the local community rather than far away.

It is very important to establish round tables with elements of mediation on the state and national level and in some cases also on local level. The aspects of regional energy planning, climate change, biodiversity, public costs of the actual energy supply system etc. should be presented, discussed and common solutions should be found. Administrative staff responsible for water management, biodiversity AND climate change and renewable energies should be present and serve as "information resource persons". In these round tables (maybe at a later stage) political decision makers should be included. A study calculating social and environmental costs in the case of the dismantling of small plants and weirs may be helpful. Who would bear the costs? Which species would realistically reappear? Who could deliver the renewable energy that is missing now? At what (grid) cost? Collecting local best



practice examples of environmentally sound run small hydropower plants is also beneficial. In general, there is a need for more data. At the moment there are no fact-based discussions and positions are very ideological on both sides. Furthermore, the role of local climate mitigation measures seems not to be recognized as an important factor to save nature. It should be emphasized that climate change mitigation through renewables contributes to nature protection and biodiversity.

Two positive examples for social participation processes are: o Planned PSP Heimbach at the River Rhein in Germany by Stadtwerke Mainz

AG (ZEK Hydro Oct. 2014 p. 53-55 https://issuu.com/zekmagazin/docs/hydro_05_2014_72dpi).

o In a village in the south of Germany a run-of-river plant has been refurbished with a new weir (it had been historical and not automated until 2017 - thus being very dangerous for the workers to set it up or take it down) and a fourth turbine was installed in order to increase productivity. Also a fish ladder was integrated in the construction. The plant is in the middle of the village and during construction works of about one year the inhabitants had to deal with (sometimes severe) inconveniences. The operator had invited all inhabitants before starting construction works in order to inform them. Also during construction he constantly had an open ear and tried to make the disturbances as little as possible for individuals, mainly those living next to the river. Afterwards he acknowledged their support. The village has accepted construction measures and supports the plant.

Involvement of local population, potentially via local ownership structures, as financial partners, acting in the implementation of impacts mitigation and in the implementation of new local infrastructures.

Finance (more specifically green financing) can also play a role: two different points of view can be implemented:

o Financial evaluation and rating increasingly take into account Environmental and Social performance. Which in the end, is strongly influencing the financing terms and conditions of projects. A shared benefits approach can be an asset in this context. The significant use of green financing for the hydro sector underlines the sustainability of this energy and helps to enhance it. For example, green bonds are associated with transparency commitments on the impact of funded projects and their implementation. They must be implemented in accordance with environmental and societal criteria.

o However, additional funding support to implement environmental or ecological improvements at hydropower projects would be welcomed and encouraged. Suggestions returning funds from taxation etc. directly to fund environmental improvements. Another suggestion was Eco-points analogous to carbon credit trading, but for ecological improvements with other industries.


https://issuu.com/zekmagazin/docs/hydro_05_2014_72dpi


3.2.2.3 Coordination among Hydropower Stakeholders of Multi-purpose projects

The provision of multi-purpose is an important aspect, as it can help to increase social acceptance of hydropower projects particularly in the context of global warming.

In the Southern part of Europe, it is difficult to imagine the construction of new dams just devoted to hydropower generation. As a matter of fact, for instance in Italy, most of the concessions for dams for hydropower generation have to perform additional activities, such as lamination during flood events, water supply in periods of water scarcity and other ancillary uses. Bulgaria is at one of the last places in Europe with respect to water resources per inhabitant, i.e. the country has lack of water resources. Hence, all of the national large water economy systems are multi-purpose ones. Furthermore, the irregularity of the run-off within the year is immense. Thus, dams are strongly needed, too. All large Bulgarian Hydraulic Engineering systems were built predominantly after the II.WW up to the 1980s, all they are multi-purpose ones. Unfortunately, some important large national and international (like the common BG-RO projects on the Danube) projects remained not realized due to different reasons. At least two multi-purpose run-of-river projects common for BG and RO could be developed in the next decades (river navigation, road and railway connections, hydropower etc.).

This means that new projects have to be designed since the beginning as a multi-purpose project. Climate change is also a strong driver in this direction. Powered dams can provide the following services: flood control, irrigation, drinking water supply, tourism, recreational and sport activities, fish breeding, navigation. For more detail and in-depth discussion see the report “The hydropower sector’s contribution to a sustainable and prosperous Europe” by DNV-GL (chapter 7.4): https://www.hydropower.org/sites/default/files/publications-docs/The%20Hydropower%20Sector%27s%20Contribution%20to%20a%20Sustainable%20and%20Prosperous%20Europe%20%E2%80%93%20Main%20Report.pdf . In the future, multi-purpose projects can be developed for other additional purposes, such as sea Water Pump Storage Plant combined with desalination plant (providing energy storage and drinking water) and tidal Power Plant combined with protection against coastal flooding or coastal erosion, and/or road across an estuary, and/or navigation, and/or aquaculture.

The main challenges for the implementation of multi-purpose projects are:

intensive CAPEX (even if the global economy of the project may be improved),

loss of revenues for Hydropower.

multiple off takers/clients with different (and sometimes conflicting interests that need to be mediated)

potentially conflicting technical requirements.



balanced compromises between electricity generation and other services, while putting decarbonization, flexibility and storage in the foreground.

The good practices include:

Improved coordination and collaboration among hydropower stakeholders leading to a fair costs distribution between all the entities involved, associated to water consumption, reservoir utilization and infrastructures maintenance. Multi-purpose projects require Water Management Plans, according to WFD, and Flood Risk Management Plans, according to EU Flood Directive, and the participation of all relevant stakeholders. User expertise and the capacity of users to address, document and articulate their needs and issues are much more acute than they were in the past, especially water users such as farmers and fishermen, or environmental associations. This induces a certain kind of “on principle scepticism” where the word of an engineer or the one of an expert is no longer sufficient, and will not be taken for granted. Scientific demonstration is sometimes perceived as irrelevant in regard of everyday observations and personal attachment. This new attitude toward science and technical planning sets new basis and new minimum expectations. The first one is participation. Not only the representatives, but now general population and communities expect to be taken in account. Not only to be consulted but to actually participate. Sometimes as far as having an influence over hydropower plant management choices and water resources dispatch.

Sustainability, which is expected across the whole lifecycle of hydropower assets. The water demand itself is increasing, and so are the ways of using water.

Population awareness of reservoir benefits should be addressed by means of trustworthy information.

Multi-purpose project can be more easily developed through Public-public partnerships (PPP), due to the level complexity and the high costs involved. Within PPP schemes all involved parties can pursue their own interest in a coordinated way. In this kind of project, governments have their own goal mostly for strategic development as irrigation and water supply, flood protection etc, whereas private companies are mostly focus on economic viability and return of investments; since electricity generation is the most profitable activity, usually their goal is to build HPP for electricity production and operate during concession period). This outlook may change if additional services are remunerated.

The needs for improvements are:

Monetization of the hydropower reservoir services providing added value to the society and raising the profitability and the attractiveness of hydropower projects (see 3.2.2.4). More and more water is needed to satisfy an ever growing number of activities which maintains a high water demand year wide and seasonal peaks in consumption tend to become the norm, thus creating new challenges for hydropower generation and management. Climate change, while inducing water shortages and important modifications to river basins functions, enhances tensions



between the different water uses and will not ease this shifting process. In this context, the development of hydropower requires a better recognition of its added value in terms of energy, but also in economic and societal terms. It is therefore necessary to measure, objectify and promote the value created or destructed by hydropower activities on the territories: employment, support to other activities, attractiveness, etc. This studying process should be done in collaboration with a panel of users, representatives and local communities that would be invited to share their in-depth, first-hand knowledge, especially of water and land use.

Incentives to promoters should be implemented by adequate policies and involving local population.

The development of innovative tools and approaches can increase opportunities for better integration of multiple water uses and objectives (see 3.2.2.4).

3.2.2.4 Training and EducationDissemination of information can support the acknowledgment of hydropower as a renewable energy source at school, community colleges, universities with visit of power plants. Evaluating and developing comprehensive training and education programs (Hydropower-related science, technology, engineering, and educational materials) at community colleges, universities, school of engineers and training facilities can help encourage and anticipate the technical and advanced degree workforce required to meet the industry’s long-term needs.

3.2.2.5 Development of tools and approaches to increase social acceptance

Several tools or approaches are necessary to increase social acceptance and demonstrate the advantages of Hydropower. These tools might be validated and certified by the EU.

A tool for monetizing the added value to the society services provided by the multi-purpose is urgently required. Remuneration schemes for these services need to be set up. This will raise the profitability and the attractiveness of hydropower projects.

A tool estimating GHG impacts on a life cycle basis is crucial for quantifying the potential GHG reduction resulting from new hydropower project within the scenarios exploring concurrent alternatives. A life cycle-based assessment considers upstream emissions, ongoing combustion and non-combustion emissions, and downstream emissions. Upstream and downstream emissions include emissions resulting from raw materials extraction, materials manufacturing, component manufacturing, transportation from the manufacturing facility to the construction site, on-site construction, project decommissioning, disassembly, transportation to the waste site, and ultimate disposal and/or recycling of the equipment and other site material.



Renewable portfolio standards compiling and analyzing all renewable energy incentives, and the impact of renewable energy incentive programs on thegrowth of hydropower relative to the growth of other technologies can clarify the distorted market for hydropower and can also provide industry and policy makers with a deeper understanding how hydropower is penalized and the key factors to get a better framework for achieving the objectives of new low carbon electric system.

Every operator use tool or models that allow project and reservoir operations. These existing tools should be evaluated to assure they can address future conditions of climate changing in a manner that enables the most efficient and effective operations to be identified relative to power, water and other resources. Such evaluations could identify improvements to existing tools and models and identify the assumptions, bases and best practices in the global warming context for developing a European tool for better integration of multiple water uses and objectives within Basins and Watersheds.

Development of Eco-labels (see 3.3.1).

3.3 Continuous improvement of the protection of environment

Accelerate the ability of owners to new research outputs and innovation can enhance environmental outcomes.

3.3.1 Implementation of eco-labels

The purpose is to elaborate some tools to effectively balance ecological and environmental protection with hydropower production.

The tradeoffs between nature and climate policies are challenging. Hydropower benefits towards water management strategies, hydropower production, economic development and even climate mitigation targets are important factors that need to be balanced with environmental and ecosystem protection. This holistic approach assessing a hydropower project is encouraged to occur at all stages to project development: planning, design, construction and operation. Full life cycle assessment backs this approach.

Experience show that "ecological hydropower" is largely more accepted. This must be used as a brand with content. Make Hydro "Renewable and Green". It is important to compare hydro to other possible productions sources and their impact on the climate, environment and society. However the question is how the environmental performance can be ranked?



Many respondents of the consultation like the idea of “eco-labels” else “ecoscore” or “certificates”. Such a environmental indicator has been used for a long time : the CO2 emission per kWh generated. Recently a new environmental indicator, the eco-score, was launched by IDAE, the public Spanish Institute for Diversification and Energy Saving. The value of this indicator shows that hydropower has one of the least harmful footprints. Environmental Performance of New and Existing Hydropower Technologies Environmental performance of hydropower and PSH technologies is a significant concern of all parties and should thus be evaluated and, when necessary, modified to ensure continual improvement. A European project could analyses the different environmental indicators used up to now and select the most relevant in order to measure the environmental progress of any power plant.

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500

1000

Fossil PV Combinedcycle (gas)

Eolic Hydro

g CO2 eq / kWh

Figure 3 CO2 emission per energy (IDAE)



Figure 4 Eco-score of the main energy resources (IDAE)

Developing quantifiable environmental sustainability metrics and applying them to the development and operation of new hydropower facilities can lead to greater consistency in permitting processes and qualification for national, state, and local renewable energy goals.

3.3.2 Protection of biodiversityThe main purposes are (1) to develop Innovative solutions for upstream and downstream fish migration, (2) to improve a common approach of the management of ecological flows according to water regimes and EU guidance document N°31 and (3) to develop tools to set up appropriate mitigation measures on biodiversity under climate change. WFD highlights the need to broaden the scope of impact assessments to the entire river-basins, especially in assessing system impacts and benefits.

For the topic N°1, the fish transport continuity, some specific responses regarding fish friendly infrastructure, equipment and operations exist and are under on-going development:

Improving fish-pass operation via improved fish migration and density predictions. Ensuring natural ecological flows, especially protecting from hydropeaking. Fish-friendly turbine design, where reduced fish-mortality is reliable with reduced

turbine efficiency.

Some points from the WFD lead to interpretation and require discussion:

There is no tool to set up appropriate mitigation measures on biodiversity under climate change: there is a need for a European project to design such a tool.



The determination of ecological flow and the application of continuity principle is not obvious in several cases. It is important to note that IUCN has adopted another principle specializing the rivers. The environmental flow regulations are not enough scientifically based.

The classification of sites of high-ecological importance or value for biodiversity protection must not be applied solely to hydropower but must be applied to all anthropogenic activities, including agriculture, tourism etc…

For habitat preservation, both natural and geo-engineered solutions have to be studied: where natural solutions are no longer feasible, changing for example, river bank construction from a hard (concrete) to a soft (soil, roots and plants) can create new stable habitats.

There is a need to focus on biodiversity populations, rather than focusing on an individual species.

They are some issues with the perceived “natural states” and the onus put upon hydropower operators to test un-proven environmental measures.

In some cases, biodiversity benefits from hydropower should be highlighted: new bird habitats, stopping invasive species, removing trash from rivers especially plastic, etc...

3.3.3 Water quality and quantityThe purpose is to find new opportunities for Hydro to deliver solutions to maintain or improve water quality in rivers and reservoirs. There will be also a need to Increase of storage with regards to future water availability with climate change.

Solutions for water quality rely on the interdisciplinary cooperation between hydro-technical engineers and ecologists. A variety of solutions exist, each with their own characteristics. Improved mutual understanding, combined with local knowledge and comprehensive stakeholder engagement, would help to adapt and modify existing concepts for deployment. This includes integrated solutions at the river basin scale that also take into account other human influences on the river basin scale. Mitigation efforts can be compounded through a systemic approach.

Regarding flow regimes, there is a need for hydropower discharges to mimic natural flows, taking into account seasonal variations, migration of fauna (including both fish and invertebrates), and how climate change may affect these dynamics. In addition to mimicking natural flows, mitigating the effects of hydro-peaking is also featured as a concern. The coupling of river geomorphologic, hydrology and ecological models to evaluate, test and optimize operational regimes is suggested.



3.3.4 Sediment managementThe objective is to improve sediment management as part of Dam Safety and Operation within Integrated River Basin Management policies in order to increase the lifetime of the reservoir, the operability of the power plant and reduce the impact on ecosystems.

A surplus in sediment accumulation within an impoundment is in most of the cases related to a sediment deficit in the downstream river reach and lead to riverbed and coastal erosion. Most of the large global river systems suffer from reduced sediment yields (e. g. the Rhine). Due to diked rivers, navigation and straightening of water ways, the transport capacity and thus the sediment need of rivers is often higher than before, requesting even more sediment from upstream. Sediment, including fine sediment, is an integral part of every river system, necessary for the shape of the riverbed, ecological diversity and nutrient supply. On the other hand, many rivers worldwide are confronted with increased solids entry and sediment import due to anthropogenic impacts within the catchment area. Agricultural land use and wastewater drainage result as well in increased nutrient supply. High fine sediment loads can lead to clogging of the riverbed, interrupting the hydrological and ecological exchange process between river and ground water. Rivers with industrially used catchment areas as well as with navigation activities are often negatively affected by contamination. Contaminants like heavy metals can be bound relatively stable to cohesive sediment fractions in sedimentation zones. Due to these points, sediment retention in impoundments can in some cases also be an opportunity to improve the rivers ecology in the downstream river section.

From a legal perspective, sediment taken out of an aquatic system is often treated as waste assuming as per definition the actor has the intention to get rid of it. In the field of waste production and resource treatment, the axiom of recycling economy generally becomes relevant, whereby waste is rather defined as a resource with value than waste.

Sediment accumulation within reservoirs is an undesired condition. In the past, there was the habit to remove sediment from the artificial storage basin. But instead handling sediment as “waste” it should be rather defined as a resource and a natural and essential part of the aquatic system. Now, continuous sediment transfer techniques are desirable solutions, while also taking into account natural systems and ecological needs. Continuous bed load transport preserve ecological system. Replenishment of sediments downstream of dams combined with artificial flood release and fine sediment venting and flushing is a promising strategy which need further ecological assessment.

Under ecological and economical perspective, the following hierarchy of alternatives is focused (§ 4 Directive 2008/98/EC):

1. prevention: upstream solutions to minimize sediment arriving at the reservoir.2. utilization: methods to route sediment around the reservoir



3. recovery/treatment: 4. disposal: methods to remove sediments

Setting target ‘states’ for different components of the river basin, i.e., dam, reservoir, downstream and upstream systems, best management techniques could be designed, modelled, implemented, monitored and continuously improved.

There is a need to find innovative efficient and cheap sediment evacuation system (structural & operational).

3.4 Funding Hydropower Research and deployment

3.4.1 Enhancing finance for hydropower investorsCurrent funding mainly dedicated t to refurbishment, repowering and increase of flexibility and efficiency of old plants extending their lifespan is not enough.

3.4.1.1 Investment priorities

Most of the large scale plants can be operated very economically in a fair and undistorted market without subsidies. However, some need investments providing assistance to compete with solar and storage and to complete refurbishment. In the future wind and solar will be more competitive and hydro more expensive for protecting the environment and the water supply, and most of investments will be attracted by new services for flexibility and storage required by these intermittent energies.

Concerning small hydropower plants, most investments are directed towards environmental adjustments. However, investment priorities should focus on efficiency improvement (repowering)

Indeed, small and large hydropower should not be distinguished (unless extreme cases of interference with one another) and all sizes of schemes must be investigated, offering optimal and rational investment on a case-by-case basis depending on the needs and circumstances of each on its own merits.

Investments should focus on the exploitation of remaining hydropower potentials, retrofit, R&D for new solutions, sediment removal and treatment and measures for environmental protection. But also on the development of cheap, easy-to-install sensor to increase data quantity and quality; of advanced tool and unmanned devices to substitute low value operators actions; of new and intelligent models to support the decision making process both in operation and maintenance; of reliable and high capacity connection systems and



network to guarantee the process of data gathering and HPPs real time monitoring; and of new and more reliable seasonal (up to 9 months) forecasting models to support the reservoir management (e.g. flood prediction, midterm production planning, optimize maintenance scheduling, sediment management).

Investments priorities should also focus on the creation of a common European platform of open data related to plants and dams to enhance the data samples and enable design of new algorithm and improve existing ones.

There is also a need to develop Water Management Plans (the one under Water Framework Directive is mostly just Water Protection Plans) with water uses management for development, poverty mitigation and water protection measures.

Finally, long term investments need long term frame-conditions or public guarantees to avoid stranded investments.

3.4.1.2 Funding schemesThe purpose is to remove Barriers to the Financing of Hydropower Projects. The economics of developing new hydropower projects can be improved by facilitating access to low-cost capital and investors with long-term perspective. Hydropower design under uncertainties is a key challenge and non-conventional project evaluation approaches are needed.

Large plants need large amounts of capitals. A large portion of their GHG emissions are produced during construction phase and first years of operation, yet, they also generate more hydropower and offer numerous services in addition to energy generation and storage which are usually not taken into consideration during the life cycle cost & benefit analysis. Large scale projects benefit from Public Private Partnership, Export Bayer and guaranteed loans with soft interest rate. Public finance, completed scheme can be re-financed in the private sector. State funding is also possible in stages. Depending on local conditions: planning a stepped expansion in which later expansions can be integrated into the investment project from the start. EIB/Innovation Fund and co-funders are other possibilities. Multilateral Development Bank guarantees and other risk mitigation measures enhance likelihood of projects financial closure.

Small hydropower plants are less easy to fund and require a portfolio/bundling approach. Small scale projects may benefit from fair Feed In Tariffs or Feed in Premium Schemes with simple Power Purchase Agreements which provide fair rate of return. The Feed in tariffs under German renewable energies act should be pursued for small hydropower. Most suitable might be Public Private Partnerships with concession period of 15-20 years. Syndicated crowd-funding throughout Europe is also possible. Other subsidies are also mentioned. In Greece, there is a mature financial scheme for intermittent renewable



resources and small hydro offers numerous financial and investment opportunities, but no financial scheme for large hydro and pumped storage projects.

Main other effective funding schemes are: Grant can fund feasibility study with pre-qualified designer who will optimize the

investor needs, environmental requirements, government needs and Funding schemes.

The construction can be supported with soft loans. Power Purchase Agreements for PSH paying part of the energy generated during the

financial life of the investment are effective funding as well as compensations for capacity reserves and energy storage.

For hydropower deployment and new technologies funding for first application: small funding schemes better suited. Investors look at risks related to water availability, sedimentation, tariff, cost-benefit ratio, economic & financial rate of returns based on feasibility study. Or Grants to support the capital costs for large-scale deployment of commercially available solutions (e.g. CEF, Connecting Europe facility, Innovation Fund for First of the Kind Solutions)

Fair cost allocation in multi-purpose-use-assets, i.e. flood protection, river cleaning ... For operation and maintenance: a breakeven costs and recompense plus a marginal

surplus for the operator/entrepreneur (or even further: a break-even compensation of production costs considering the other advantages of renewable CO2-free production (e.g. grid stability, etc.)

For additional environmental measures: tradable certificates for trading off the environmental private investments.

However, to answer the question “if support for a level playing field for all technologies might be more effective than funding hydropower?” It is necessary to carry out the analysis of the renewable portfolio standards (see 3.2.2.5) compiling and analyzing all renewable energy incentives, and the impact of renewable energy incentive programs on the growth of hydropower relative to the growth of other technologies. Improve Understanding of and Eligibility/Participation in Renewable and Clean Energy Markets. Creating a set of tools to better understand policy rules and market eligibility can help reduce confusion and point developers towards the highest value markets for which their hydropower projects are eligible.

3.4.1.3 Enhanced Revenue and Market Structures

Current business model is capital intensive with huge payback time. Current electricity market situation makes investment into hydropower plants economically infeasible. In one hand high construction time and costs and taxes and on the other hand multipurpose



benefits of hydro not rewarded. However, these projects should have an autonomous line of credit as the long-term risk on the revenue is low compared to other technologies. Hopefully in the future, counterproductive subsidies will be repealed, and market principles will lead to more attractive investment conditions.

To overcome these barriers a large brain trust is expected at the European level to help identifying what market mechanisms and regulatory frameworks are necessary to back our Energy transition and to identify how to successfully incentive and reward necessary Pumped Hydro Storage development. For instance, main issues are:

(1) What categorizing in the institutional frame a PSP and/or a hybrid PSP/batteries to answer to the dual market requirement of large storage and inertia and Load following and Fast response.

(2) What are the ancillary services provisions and associated revenues for the next decades? How influence Institutional to cope with this issue?

(3) What are the interests/complementarities of large storage versus distributed storage with no guaranteed renewable energy sources?

(4) What will be the institutional incentives? We have to find the model of collaboration between Government needs and Investors needs.

Some answers for improving valuation and compensation of Hydropower in Electricity Markets are compiled hereunder. Enhancing existing market approaches and developing new approaches could facilitate full recognition and compensation of the suite of grid services, operational flexibility, and system-wide benefits offered by new and existing hydropower.

Valuation for all grid services such as the mechanisms recently researched in the Republic of Ireland.

Intra-day value: new method to evaluate properly the total market value of hydro generation including ID and balancing market and to optimize the value from hydro.

Ancillary services: development of opportunities and new market model for hydro offered by the European grid code evolutions.

Grid Codes: development of new network codes for energy storage, including pumped hydro power.

Business cases: development of new products for system services that are tailored to storage added value.

CO2 fees: there is an urgent need for a proper, Europe-wide and all sectors including carbon pricing (whether ETS, taxes, etc.) that considers the whole life-cycle of products and technologies.

Regulation costs: reduce costs of permitting, licensing, and compliance.

Climate change: funding for climate change adaptation of existing and new HPPs.



New ideas to be studied are: Autonomous line of credit (long-term risk on revenue low compared to other

technologies). Hydro will probably remain profitable for another 150 years as it is just about to open the wicket gates...

Market should not be set on marginal costs: all renewables should include Capex costs in their bids.

Service fee provided for being one of the few centralized generating solutions in a progressively pulverized grid.

The business of grid operators should be restricted to non-competition services. Financial support for increasing connectivity in rivers, mainly for small plants, less

complex and time consuming, and including smaller plants too. Research and Innovation Actions (RIA)/ Innovation Actions (IA) in the framework

programme (Horizon Europe), in work programs as Energy, LEIT ICT and NMBP, and Climate Change.

Innovation Fund like support schemes. Options for subsidizing electricity generation in (exclusive) connection with sector

coupling/sector integration.

Enhanced market rules related to scheduling and operation of PSH can improve valuation and compensation of this energy storage technology in Electricity Markets Current electricity market situation makes investment into PSH economically infeasible. In the future market design, exempt grid costs and double taxation for pumped hydro power can facilitate the use of its full value.

To ensure a reliable system, all services should be traded on a market open for all technologies and suppliers, avoiding technology discriminative grid regulations. However, flexibility and storage of energy are the externalities of intermittent energies and they concern the security of the grid. Externalities and security concern generally are not market based but constrained by regulations.

3.4.1.4 Improvement of regulation There is a need of analysis of policy Impact scenarios at European level for improving the ability to assess potential impacts of policy options on markets, power systems, ecosystems and populations — all on local, regional, and national scales — and informing decision makers, related to :

Concessions. At national level, the renewal of those concessions that are going to expire represents a good opportunity to include a particular attention to the environmental aspects, in addition to social and economic ones.

Safety. Procedures could be simplified to carry out optimized structural safety assessments and avoid useless loss of generation.



Taxes could find the optimal share between taxes, water rights, revenues between the different stakeholders, based on negotiations with stakeholders to share the value and benefits of the water resource and analyses of case studies and legislation approaches.

National Regulator can do much in terms of economic and financial instruments for increasing the competitiveness of hydropower.

European hydropower should strive to follow the WFD rather than try to be exempt. However there is a need to improve WFD on scientific based amendments. The Water Framework Directive is too strict when it comes to the non-deterioration principle. Operators are ecological thinking persons and want to improve the river biodiversity, however in some cases it leads too far.

There are too numerous and too lengthy procedures and regulations. Solution is a consistent national legal framework to reconcile environmental and energy goals, based on balanced cost/benefit assessments and on balanced environmental impact mitigation/rewards multipurpose and decarbonization benefits of assets. From the Swedish experience, the only way to solve this complex system with energy and environment is to start with producing a national master plan and adaptive management. The concept is to gather all relevant high levels stakeholders of the energy value chain and after several years of discussions to reach an all parties agreement introducing goals and plans to the future energy system in, leading to a new national legislation. This national plan for revision of all environment and economical (taxes) requirements gives a 20y stable framework for investors. Hydropower Management of Water Basin has to be done according to stakeholders’ process in each catchment area.

Hydropower project are unique, each one requiring specific consumers demands to be met. One-size-fits-all solutions are not suitable for the sector. Multi-disciplinary teams (with hydraulic engineer in charge) should analyze all possibilities for multipurpose use of the water for one system and accordingly to plan optimal use of the water following common guiding principles.

There is a need of multipurpose regulations creating a framework for cost and benefit share among parties. Real arbitration needs to take place (not only on paper): for instance, an office/officer for climate change should be established at the environmental administrations in order to really arbitrate interests and to not overvalue the interests of the environmental or industrial lobbies. The real cost of the water (or water restriction) should be evaluated and applied to other water uses.



3.4.2 Implementation of the RIA

Currently public funding landscape is not favourable. Hydropower is less funded than other renewables and had critically low budget resources for research, jeopardizing energy transition and European research excellence and technology leadership in this area. There is a need for improvement. Current funding needs to be connected to the building of a “Smart Water Management Development”

There is a funding conflict with the European De-minimis regulation (EU 2013) limiting to 200,000€ in 3 consecutive years the funding received from national scale and companies (group level). Higher amounts are considered as state aid and need EC approval, even applied to R&D projects whose results are made available to the public (no competitive advantage).

In some countries privately funded projects are possible if long term market mechanisms are in place, but the ancillary benefits provided by hydropower are still undervalued in most markets.

Austrian funding landscape provides several funding schemes energy-related and open-topic for projects with varying TRL. Only gap is for first time funding for large scale application.

In Europe the implementation of multitude of public funding approaches mainly driven from local experience and by the particularities of the energy production and energy market landscapes is too complex. A unified approach will greatly benefit the investment opportunities particularly for large hydro in the EU, offering a multitude of other social, environmental, employment and financial benefits.

The new EU Innovation fund could provide valuable support for research and innovation. Funding mechanisms are more than appropriate. As far as Funding topics are concerned, more specific topics should be published in Work programs such as Energy, LEIT ICT, LEIT NMBP, and Climate action, related to Hydropower sector.

Increased R&I efforts and strategic alignment of national and EU programmes are necessary to realize all the potential embedded in technology innovation and hydropower generation. The project shall attract the interest of SET Plan Steering Group members and H2020 and FP9 Work Programme Committee members, through which the opportunity exists to steer both national and EU funding strategies. Proposals will be made to European States to ensure the flexibility and security of their electricity network while developing the multi-use of water and regional development using hydropower.



The RIA should be regularly updated by tracking hydropower technology advancement and deployment progress and prioritizing remaining research and development activities.

3.4.3 Application of the RIA to the technology advancement

Validate Performance and Reliability of New Hydropower and PSH Technologies. Validating performance of new hydropower and PSH technologies can increase investor confidence, thereby facilitating greater deployment of new capacity.

3.4.4 Dissemination of the outcomes of the project

Results will be promoted to political stakeholders, countries and local communities through the stakeholders’ communication resources as soon as possible.

Dissemination actions with selected targets will enhance the hydro deployment and showing the added value of the HYDROPOWER-EUROPE roadmap to each target for its sector.

Increase acceptance of hydropower as a renewable energy source is the Top 1 target. Demonstrating and communicating that hydropower is a core renewable energy source is the key to increase public understanding and encourage inclusion of hydropower in clean energy planning and markets, as appropriate.

RIA Follow up of the Existing Research and Analysis of the EU in Hydropower research and innovation Investment Decisions is the top 2 target. EU R&I research projects should be used by policymakers and research agency staff in making national research investment decisions.

3.4.5 Strengthen relationships with EC

The Hydropower-Europe forum must continue to give a voice to hydropower at the European Commission to constantly remind it of its objectives and services:

To provide secure, low-carbon energy system for whole Europe. To play a key role in the transition towards low-carbon energy system by generating

as much CO2 free electrical energy as possible in an environmentally sustainable way and guaranteeing the stability of the grid with flexible storage.

To remain the backbone of Europe's power generation from renewable resources. To preserve Europe as a leader in renewable energy technologies and to make a

major contribution to the European research excellence and export force. To develop job employment by exporting its technologies and developing new

regional development. To ensure multi-purpose usage of water resources.

The SIR has to be maintained in order to achieve the objectives of the Hydropower Vision. The strategic industry roadmap should be regularly updated by tracking hydropower



technology advancement and deployment progress, and prioritizing research and development activities.

After the 3yr lifecycle of the HYDROPOWER-EUROPE project, the preferred option between Technology Platform launching or forum continuation will be initiated. The selected option will be in touch with EU for checking out the R&I projects on Hydro.

For having a better political and societal impact, European Hydropower Association should be created with the purpose to have a permanent and strong representation in Brussels in order to:

• Give views and advices to EU on regulation issues.• Discuss a stronger EU-governance to facilitate a broad and independent

preparation of infrastructural projects by the member states. • Back the use of Pumped storage plants.• Follow the methodology already used inside the different European Technology

and Innovation Platform supporting the SET Plan Research Agenda Implementation: ETIP-HYDRO.



4 REFERENCES

Hydropower & Dams World Atlas 2019EU (2013) Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid Text with EEA relevance OJ L 352, 24.12.2013, p. 1–8. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R1407EU (2018) A Clean Planet for all. A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy. IN-DEPTH ANALYSIS IN SUPPORT OF THE COMMISSION COMMUNICATION COM(2018) 773. Brussels 28 November 2018IEA (2018), World Energy Outlook 2018IEA (2019) Flexible hydropower proving value to renewable energy integration. IEA Hydropower Annex IX, White Paper No.1, October 2019.IRENA (2017), Renewable Cost Database and Auctions Database, http://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/Jan/IRENA_2017_Power_Costs_2018.pdfMontero F.P. (2019) Challenges for hydropower in the future decarbonised economy. The case of Spain. Hydropower Europe. Regional workshop in Chania 1st of September 2019.

Websites:https://www.etip-snet.eu/etip-snet-vision-2050/https://rebellion.earth/the-truth/



APPENDICES

Appendix A Functional Objectives and Associated Resources

… …Cross sectional overview with opportunities, chances and risks


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