Europe | European perspectives
Hydropower is a vital component of the European energy transition. Here IWP&DC takes a look at unutilised potential, and the important role refurbishment continues to play
HYDROPOWER PLAYS AN ESSENTIAL role in Europe’s energy landscape, making a significant contribution to the continent’s renewable power mix. Recent research by the Pan European Network on Sustainable Hydropower (PEN@Hydropower), which brings together more than 375 members across five working groups spanning technical, environmental, economic, and social perspectives, has sought to analyse the barriers to hydropower exploitation across Europe. And in doing so, wanted to “contribute to closing a recognised research gap in renewable energy literature, where hydropower on the European level has received less attention than wind and solar energy”. In their study published in Renewable Energy,
Kasiulis et al focused on four European countries with relatively small hydropower production and large possibility for additional hydro power capacity. Often underrepresented in the literature, the authors say the countries of Slovenia, Lithuania, Poland, and Iceland, offer valuable insights into how multi-level governance and stakeholder dynamics shape the implementation of EU climate and energy policies.
Slovenia Located in the south of central Europe, hydropower
Hyttfoss Dam in Norway. courtesy of Statkraft
production in Slovenia was described as being ‘very good’ in 2023, with 4.9 TWh corresponding to 41.99 % of total national energy production. With the current installed hydropower potential representing 47% of the total technically available potential, social and environmental concerns are said to be the main barriers to hydropower development here. Indeed, over the past few years, attempts to build new hydropower units haven’t been successful. Technological advancements included in new projects have mainly focused on providing greater flexibility to integrate renewable energy, implementing passages for aquatic organisms, and increasing spillway capacity. As Kasiulis et al say it remains to be seen if pumped storage hydro will fare better.
Poland With an overall installed hydropower capacity
of 2421MW, in 2023 Polish hydropower was the country’s fourth biggest source of electricity from renewable sources. Here hydropower generated 2.41TWh of electricity, or 5.25% of all renewables, with an additional 1.54TWh generated from pumped storage hydropower plants. Poland has 782 hydropower plants and six pumped
storage plants, with estimates suggesting that only about 15% of the country’s technical hydropower potential has been developed so far. Kasiulis et al say hydropower development and operation in Poland face several persistent barriers, including: ● Complex and costly administrative and environmental assessment procedures, which are particularly burdensome for small-scale projects.
● High investment and operational costs for operators due to obligations related to water regulation, infrastructure maintenance, and compliance with increasingly strict environmental standards.
● Financial challenges – compounded by short support periods (15 years), which are misaligned with the typical 60–70 years lifespan of hydropower plants, as well as recent water pricing policies and increased land-use fees.
● Regulatory gaps –such as the absence of clear rules for utilising existing weirs, lack of spatial planning integration, and the unpredictability of legal frameworks. These create significant uncertainty, especially for smaller investors.
Lithuania In Lithuania, after wind and solar, hydropower was the
third biggest source of renewable energy during 2023, generating 0.45TWh of electricity or 11.6 % from all renewables. In addition, electricity generated from the Kruonis pumped storage hydropower plant, provided another 0.52TWh. Overall installed hydropower capacity in Lithuania is 1029MW. Of this, 101MW comes from the Kaunas hydropower plant, with the Kruonis pumped storage hydropower plant providing 900MW. The remaining capacity comes from 98 small hydropower plants – the last of which was commissioned in 2017 with no further small hydropower development expected in the near future. The main barriers to Lithuanian hydropower development are cited as being political and environmental. Although environmental factors theoretically also act as enablers, they remain underutilised, the authors claim.
Iceland
Standing as a global leader in renewable energy production, Icelandic hydropower accounts for 75% of the country’s electricity, aided by its abundant glacial rivers, high precipitation (averaging 1940mm per year),
22 | May 2026 |
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