Bankwatch

New report: Costly hydropower subsidies wreak environmental havoc in Albania

Disproportionate public subsidies for small hydropower in the Western Balkans have resulted in widespread environmental damage, finds a new study released today by CEE Bankwatch Network. Even though it is changing its incentives system, Albania is still paying the most in the region to small hydropower producers, shows the report.

 

New Report: Western Balkans hydropower. Who pays, who profits?

Fuelled by generous state-sponsored feed-in tariffs, the number of hydropower plants under 10 megawatts in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia quadrupled from 108 to at least 488 between 2009 and 2018. Of these, 143 are in Albania – the highest number in the region.

In 2018 no less than 70 per cent of renewable energy incentives awarded in the region benefited small hydropower. Despite this support, small hydropower only generated 3.6 per cent of total electricity.

Albania is the only country in the region apart from Serbia that has allowed feed-in tariffs for hydropower plants up to 15 MW. In 2018, 153 plants were in this category, and feed-in tariffs cost the public EUR 93.5 million – the highest amount in the region.

These plants generated 16.3 per cent of Albania’s electricity, but at an enormous environmental and social cost. Rivers like the Rrapuni near Librazhd and Fan in Mirditë  have been dammed and put into derivation pipes, leaving riverbeds dry and the communities who depend on them without vital sources of water.

Since 2017, Albania has been in the process of changing its renewable energy subsidies system to one that would lower the costs for energy consumers, but the contracts already signed are still valid for several more years. Under the new system, most new hydropower projects would have to compete in auctions, but they could still be eligible for subsidies paid by electricity consume

“Albania must end hydropower subsidies and diversify its electricity generation using solar and wind,” said Olsi Nika, Executive Director of EcoAlbania “In addition, existing feed-in tariff contracts for small hydropower plants need to be reviewed as they are valid for several more years. Any which granted incentives without all the legal conditions being fulfilled or for which the environmental permits have expired must be cancelled.

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Over 120,000 petition development banks to Save the Blue Heart of Europe and drop destructive hydropower in the Balkans

 Representatives of the Save the Blue Heart of Europe campaign in front of the EBRD headquarters in London. In their hands: 120.000 signatures. © Jason Alden, Patagonia


Representatives of the Save the Blue Heart of Europe campaign in front of the EBRD headquarters in London. In their hands: 120.000 signatures. © Jason Alden, Patagonia

London, Prague, Radolfzell, Vienna, June 21, 2018  –  Yesterday, representatives of the Save the Blue Heart of Europe campaign to save Europe’s last remaining wild rivers hand-delivered a petition endorsed globally by more than 120,000 people to high level executives at the London headquarters of the European Bank for Reconstruction and Development (EBRD).

The petition, which was launched in April 2018 as part of a wider global Save the Blue Heart of Europe campaign, calls on the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), and the World Bank’s International Finance Corporation (IFC) to halt their Balkan hydropower investments before the last wild rivers in Europe are irreversibly destroyed. Together, these institutions have funded at least 82 hydropower plants across the Balkans – of which 37 are located in protected areas – with EUR 724 million in total investments.

Handing over of the petition to Pierre Heilbronn, Vice President of the EBRD. Never before has the EBRD received so many petition signatures on energy issues © Jason Alden, Patagonia

Handing over of the petition to Pierre Heilbronn, Vice President of the EBRD. Never before has the EBRD received so many petition signatures on energy issues © Jason Alden, Patagonia

The campaign is calling on banks to immediately stop funding for projects that are located in protected areas and other valuable rivers stretches, apply more stringent green conditions to loans in the sector. It is also urging them to increase funding for energy efficiency and other renewable energy sources, most of all solar – a potential which remains largely untapped in the region.

The Save the Blue Heart of Europe is an initiative of nongovernmental organisations EuroNatur and Riverwatch, together with green groups from southeast Europe, Bankwatch and activist company Patagonia in order to save the pristine rivers of the Balkan from destruction brought by dams and diversions.

The “Screaming Lady” as symbol of resistance against hydropower in the Balkans. Here in the river Neretva in Bosnia & Herzegovina © Andrew Burr

The “Screaming Lady” as symbol of resistance against hydropower in the Balkans. Here in the river Neretva in Bosnia & Herzegovina © Andrew Burr

Fidanka McGrath, EBRD policy officer for Bankwatch, said:“120,000 signatures represent the largest petition response that the EBRD has ever received on energy issues. The EBRD prides itself on moving markets, so we hope the bank will take the public’s call to heart and drive investments in a more diverse mix of renewables, while also applying strict environmental and social safeguards.”

Theresa Schiller, Coordinator of the Blue Heart Campaign at EuroNatur, said:“International banks such as the EBRD must face up to their responsibilities in times of climate change and overexploitation of natural resources. We call on the EBRD to withdraw from financing hydropower on Balkan rivers in order to preserve this unique European natural heritage.”

Yvon Chouinard, Founder of Patagonia, said: “It’s a waste of money and a moral travesty that some of the world’s largest financial institutions have embraced this outdated and exploitative technology and are financing dams in some of the last wild places in Europe.”

Ulrich Eichelmann, Coordinator of the Blue Heart Campaign and CEO of Riverwatch, said, “It is a shame that the EBRD and other financial institutions are fueling the destruction of the most valuable rivers in Europe, leading to biodiversity loss, social grievances and deterioration of protected areas. They must stop investing in the dam tsunami and rather act as a role model for other investors by funding more actual renewables – such as solar –  instead of hydropower.”

 

Background information

    • This is a joint press release by Bankwatch, Riverwatch, EuroNatur and Patagonia

 

Further information

Fidanka Bacheva-McGrath, CEE Bankwatch Network, EBRD policy officer
[email protected],  +359 899 876 095

Cornelia Wieser, Save the Blue Heart campaign coordinator, Riverwatch
[email protected], +43 650 4544784

Anja Arning, Public Relations, EuroNatur
[email protected]; +49 7732 927213

Louise Brierley-Ingham, PR manager, Patagonia Europe
[email protected], +31 613 344 608

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Financing for hydropower in protected areas in Southeast Europe: 2018 update

The study finds that the number of hydropower projects in the region that enjoy financial support from multilateral development banks and commercial banks, is even greater than previously known.

Since 2005, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the World Bank Group have extended loans and guarantees totalling EUR 727 million to no fewer than 82 hydropower plants. This includes 37 projects in protected areas like national parks and Natura 2000 sites, or internationally recognised areas of high biodiversity value such as Important Bird Areas.

Find the report here:  View & Download

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New Bankwatch study: European-financed small hydropower plants destroy Albania’s landscapes

++ Two European-financed hydropower projects are causing significant damage to nature and people’s livelihoods, finds a new study by CEE Bankwatch Network released today.

December 20th, 2017. Prague, Tirana. A field visits to the Rrapuni and Tërnovë hydropower plants in June 2017 showed that there is an almost complete lack of implementation of the monitoring by the Albanian authorities. Both plants are financed by the European Bank for Reconstruction and Development (EBRD). In both cases, environmental destruction is accompanied by a shortage of water for the local community use. Additional infrastructure, such as access roads has brought further destruction to pristine environment.

 

The “Rrapuni 3 & 4” dam in Albania is drying up 4.5 km of the downstream riverbed, June 2017. © Klara Sikorovaposhtë digës, Qershor 2017. © Petr Hlobil

The “Rrapuni 3 & 4” dam in Albania is drying up 4.5 km of the downstream riverbed, June 2017. © Klara Sikorovaposhtë digës, Qershor 2017. © Petr Hlobil

Notably, the Rrapuni 1 & 2 hydropower plant, close to Librazhd, is not releasing enough water into the riverbed to support aquatic life and functioning of the traditional cornflower mill. This also affects in the aggravation  of the problem created a few hundred meters downstream by the Rrapuni 3 & 4* plant owned by the Albanian Orthodox Church  where no water at all is left to flow in the river bed.

Rrapuni 1 & 2 is located in the Shebenik-Jabllanicë National Park. The area is under extreme pressure from hydropower development: 45 concessions for hydropower plants have been awarded within the Park.

At the same time, the Tërnovë hydropower plant, above the town of Bulqizë, is destroying natural ecosystems connected to the Black Lake Nature Monument on top the Maja e Gjatë Mountain, with 23 km of derivation channels and about 30 km of access roads planned altogether. The project is causing massive erosion alongside the pipeline that directs water to the power plant, and is transporting together with water a considerable amount of sediment to this lake, was found out During the Bankwatch’s visit in June 2017

Olsi Nika from EcoAlbania and the Albanian coordinator of the Blue Heart Campaign notes: “These are just a few cases that show the weakness of Albanian law enforcement agencies on the nature protection and on monitoring of the environmental criterias set in the environmental permits of the hydropower projects. The environmental mitigation measures are not taken seriously into account by the companies as there is no pressure on them regarding the law enforcement by the state authorities Therefore the harmful way of operation seems to be normal in most of the existing hydropower projects”.

The EBRD has acknowledged Bankwatch’s findings. The bank’s consultants visited the plants in July 2017 and concluded that among other things the Rrapuni 1 & 2 Company needs to release at least 300 l/s of water in the riverbed, while the Tërnovë Company needs to reforest and rehabilitate the area, as well as build sediment traps to avoid further damage to the Black Lake.

Still it is unclear whether these commitments will be fulfilled as the public is deprived of access to the Action Plans approved by the EBRD’s client companies.

“The EBRD has taken a first step and admitted problems with its investments. Now it needs to release all the remediation plans and fulfill what it committed to, implementing measures to mitigate the detrimental impacts of Rrapuni and Tërnovë power plants”, says Igor Vejnovic, Bankwatch’s hydropower policy officer.

This study was conducted as part of the campaign “Save the Blue Heart of Europe and can be found at the LINK

 General information:

About 2700 new dams are currently projected between Slovenia and Albania. In order to counteract this spate of destruction, EuroNatur and RiverWatch have launched the “Save the Blue Heart of Europe” campaign in cooperation with local partners in the respective Balkan countries. Find out more here: http://www.balkanrivers.net

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