In addition to the urgent need for rapid decarbonisation as a prerequisite for meeting the Paris climate target, as highlighted in the last three IPCCC reports, the war in Ukraine also clearly shows the weaknesses of an energy system dependent on fossil fuels. Though decision-makers across party lines regard nowadays renewables as an essential instrument for an energy-independent and decarbonised EU, the majority of politicians focus primarily on wind and solar energy as well as green hydrogen.

Accelerating the transition to renewable energy sources is absolutely the solu­tion – but increasing just the quantity alone is not enough. Diversifying supply has always been a core principle of energy system security. Together with wind and solar PV, Europe can rely on a range of sustainable sources, including geothermal, solar heat, wave, hydro, concentrated solar power, bio­energy and tidal energy. Collectively these renewable sources can provide decarbonised energy at any point in the day, season or year, and keep our systems in balance. Small hydropower plays an important role for the new energy system that will be based on renewables and energy efficiency. Yet, many decision-makers tend to overlook benefits and opportunities of small hydropower and even make it harder for the sector. According to EREF’s recent calculations based on various databases, the small hydropower sector in the 27 EU countries comprises around 22,000 small hydropower plants. These generate renewable electricity for about 13 of 195 million households. The sector directly employs ca. 60,000 professionals in more than 4,500 companies – mainly small and medium-sized enterprises and family businesses.

Good potential for development
Databases such as EREF’s RESTOR Hydro Database or the AMBER Barrier Atlas show good potential for development, especially through the refurbishment of decommis­sioned small hydropower plants and unused weirs and transverse structures, estimated at about 280,000 in the 27 EU countries. Recent developments in kinetic turbines and very low head turbines allow for the expan­sion of the sector in flat areas. Especially the Dutch provinces regard small hydropower as an opportunity to complement PV and wind within the development of energy self-sufficient villages and communities. The new HYPOSO Handbook showcases the European expertise of innovative small hydropow­er. In addition to information on the history and on the application areas of small hydropower, this handbook shows and describes various technical solutions for the small hydropower sector. Valuable information on planning and financing models complete this book.

Important for energy transition
European hydropower equipment manufacturers are considered global technology leaders and export their products to small hydropower “boom” regions in Africa and Asia. Yet, the development of the small hydropower sector in the EU looks different. Only 16 of the 27 EU countries plan to expand the hydropower sector in their national energy and climate plans, especially with ­large hydropower and storage facilities. Small hydropower with its characteristics however could play an important role in the European energy transition process. It enables flexibility and promotes the integration of variable renewable energies such as wind and solar power. Thanks to its decentralized contribution to electricity supply, small hydropower helps reduce losses in electricity transmission and regulate voltage in the operation of local grids. Recent studies show that small hydropower avoids significant investments in grid modifications and saves grid costs.

SHP – “not environmental beneficial”
Despite these advantages and opportunities, the European small hydropower sector faces tough times. The taxonomy framework, which the European Commission uses to set standards for green business practices, does not include small hydropower as it is not considered as environmental beneficial. It labels however nuclear and gas as environmental friendly. The exclusion of small hydro­power from the taxonomy framework excludes small hydropower from public funding and makes it more difficult and expen­sive for plant developers to secure financing from private banks and investors.
The Commission is also in the process of implementing general licensing reform. Here, EREF is working to ensure that the new rules do not require competitive bidding for existing small hydropower facilities at license expiration.

Discussions about fish ladders
Important decisions are being prepared in the working groups on the implementation of the EU Water Framework Directive. The work program for 2022-23 puts the abolition of exemptions for licenses for small hydro­power plants and stricter residual flow require­ments up for debate. In addition, new provisions for hydropower in water bodies characterized as “heavily modified” are to be developed. The current proposals would make the construction of new small hydro­power plants in these water bodies much more difficult. As part of the EU’s goal of having 25,000 km of “free-flowing” rivers in EU countries by 2030, the EU will publish a new guidance document in July 2022 that will include, among other things, guidelines for the decommissioning of hydropower facilities. As a result of, among other things, EREF’s contribution to last year’s public consultation, the Commission has agreed to find more bene­ficial solutions for the small hydropower sector in this regard. Currently, the most intense discussion is on whether fish ladders can be considered effective solutions and whether they can be used to consider a river barrier-­free. This guideline is flanked by a package of measures to restore nature which is scheduled for summer 2022. Furthermore, the commission will still publish a guide on sediments and before the summer break.

EREF vouches for SHP
In the area of research, the Commission is focusing its attention on the promotion and development of innovative turbines in the pumped storage sector, as well as on so-called hidden hydropower in existing systems such as drinking water networks, sewage treatment plants and irrigation canals.
Thanks to the support of its members, EREF is able to defend the interests of small hydropower in the EU institutions. Due to the ongoing political dossiers and the European and national campaigns against small hydropower by so-called environmental associations, there is much to do.