World Small Hydropower Development Report 2013
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1 World Small Hydropower Development Report SLOVENIA
2 4 Europe 4.3 Southern Europe Slovenia European Small Hydropower Association, Stream Map Key facts Population 1,996,617 Area 20,273 km 2 Climate Topography Rain pattern Mediterranean climate on the coast, continental climate with mild to hot summers and cold winters in the plateaus and valleys to the east 1 A short coastal strip on the Adriatic, an alpine mountain region adjacent to Italy and Austria, mixed mountains and valleys with numerous rivers to the east Total annual amount of precipitations was 1,552 mm (in 2009). The amount of precipitation differs significantly between months. Most meteorological stations recorded maximum amounts in December and minimum amounts in May or September 2 Electricity sector overview The electricity market in Slovenia was fully opened on 1 July Since the electricity market was liberalized, industries and households have been free to choose their supplier of electricity. Distributors are able to set prices. Unbundling is limited to accounts only for the time being. The Energy Act stipulates that transmission, distribution and operation of the relevant networks and supply of electricity to tariff customers are compulsory national commercial public services. Hydropower accounts for per cent of the electricity generation (figure 1). In 2010, Slovenia had 535 small hydropower plants and a total installed capacity of 117 MW (465 GWh). By 2020, the aim is to have 568 plants with a total installed capacity of 192 MW (758 GWh). The remaining potential cannot be analyzed at this time due to lack of official and reliable data (figure 2). 4 Renewable energy policy The Renewable Energy Framework Directive is already fully implemented in the Slovenian energy legislation with the new Energy Act (September 1999), the secondary legislation and the Renewable Energy Sources Action Plan (July 2010). With its binding targets it has a positive impact on the renewable energy sources development. 4 The EU Water Framework Directive (WFD) is only partially implemented, with the regulation on heavily modified water bodies still missing. In the case of small hydropower, it is understood this is served as a protective legislation, which means that the authorization procedures, especially for the concession, are blocked. The lack of the clear governmental policy and harmonization efforts to bring the two (Renewable Energy Framework Directive and WFD) seemingly opposite interests closer together is the core cause for the slow development of the small hydropower sector. 4 The Slovenian renewable energy sources target for 2020 is 25 per cent. According to the Renewable Energy Sources Action plan (July 2010): The Ministry of the Environment and Spatial Planning will solve the blocked small hydropower concession applications. The Ministry of Economy will provide a study of the costs and benefits of existing small hydropower that will serve as a baseline for the sustainable criteria, considering environmental, social and economic effects. Small Producers Hydro Thermal Nuclear 5.58% 22.60% 32.17% 39.65% The Action Plan estimated that the country s small hydropower shows a very low increase of installed capacity and annual generation from 2005 to per cent and 33 per cent respectively. 0% 10% 20% 30% 40% 50% Figure 1 Electricity generation in Slovenia Source: Energy Agency 3 Small hydropower sector overview and potential SHP installed capacity SHP potential 117 MW 192 MW Figure 2 Small hydropower capacities in Slovenia Note: Potential based on planned 2020 capacity. Legislation on small hydropower Residual flow is regulated by Government s Decree (No. 97/2009, ) and calculated using a formula. A feed-in tariff with a premium (Government s Decree (No. 37/2009, ) exists to financially support electricity from renewable energy sources. The methodology for price calculation is based on total annual operational production costs. This includes investment, operational and maintenance costs. The depreciation period is 15 years and the discount rate is 12 per cent. 4 1
3 The small hydropower plants are divided into three categories given their installed capacity: Pi < 50 kw, Pi <1000 kw and Pi <10,000 kw. The guaranteed purchase prices are (in /MWh): 105 (< 50 kw) 93 (< 1,000 kw) 82 (< 10,000 kw) In 2009, the premium was determined by the reference market price of 65/MWh, such as: 55.9 (< 50 kw) 55.9 (< 1,000 kw) 58.5 (< 10,000 kw) The premium already comprised within the guaranteed purchase price. Only small hydropower plants less than 15 years are eligible for the support. Barriers to small hydropower development The general atmosphere is quite tense regarding all renewable investments that are potentially causing any environmental impact. While there is public support towards renewable energy sources and lowering greenhouse gas emissions, social acceptance is low among local communities when it comes to some projects. Increase the banking support and trust among bankers and investors. Introduce temporary reliefs on taxes and other duties. References 1. Central Intelligence Agency (2012). The World Factbook. Available from 2. Statistical Office of the Republic of Slovenia (2009). Average air temperatures and precipitations by meteorological stations, Slovenia, final data. Available from 3. Energy Agency of the Republic of Slovenia (2012). Report on the Energy Sector in Slovenia for European Small Hydropower Association and Intelligent Energy Europe (2012). Stream Map for Small Hydropower in the EU-27 in the view of the 2020 targets. Available from Complicated administrative procedures, lack of knowledge by landowners and information overload, as well as missing responsibilities from the investments opponents are part of the problem. Further progress can be made in the area of authorization process and financial stability: Simplification of the authorization procedure to shorten and accelerate the process. Delegate some of the procedures handling (e.g. for micro hydro under 100 kw) to local authorities, allow one-stop shop service (i.e. authorities should do preliminary work such as identifying potential locations and perform all necessary legal and technical actions), standardize application forms and allow electronic applications and follow-up (and to ensure transparency), standardize grid access. Compare positive impacts of small hydropower with environmnetal requirements and find compromise to use the maximum of available energy which is justifyable in view of environmental regulations. Harmonize the implementation of the WFD on the Member States level with the Renewable Energy Framework Directive declarations and Action Plans. No blockage due to the missing legislation should be allowed. Decrease the investment insecurity by stabilizing the prices within the support system in the long term. 2
4 Disclaimer Published in 2013 by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) UNIDO and ICSHP All rights reserved This report was jointly produced by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) to provide information about small hydropower. The document has been produced without formal United Nations editing. The designations employed and the presentations of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO and ICSHP concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as developed, industrialized and developing are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process: Mention of firm names or commercial products does not constitute an endorsement by UNIDO or its partners. The opinions, statistical data and estimates contained in the articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO and its partners. While every care has been taken to ensure that the content is useful and accurate, UNIDO and ICSHP and any contributing third parties shall have no legal liability or responsibility for the content or the accuracy of the information so provided, or for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. Copyright: Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a copy of the publication containing the quotation or reprint. Recommended citation: Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report United Nations Industrial Development Organization; International Center on Small Hydro Power. Available from
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