Small hydro |


j “It beggars belief,” the BHA continues, “that any government minister would be expected sign off a proposal underpinned by an impact assessment that makes assertions and draws conclusions which are not supported by any meaningful, up-to-date facts, any relevant analysis, or even the most basic understanding of how a commercial hydropower project is developed and operated.”


Delay The association is urging the government to delay


the price hike for 12 months, at the very least to allow


developers to decide whether to progress schemes or not.


Hamlyn adds: “The agency’s economic impact assessment attempted to conclude that there would be minimal impact on new hydro development, but it was not only ill-informed and badly written, it is a piece of work that the BHA regards as thoroughly inadequate for the gravity of sweeping conclusions it was attempting to support, and for which there was no prior engagement or factfinding with the sector. The whole sorry thing smacks of utter incompetence and a complete misunderstanding and misrepresentation of hydropower.” ●


Environment Agency


In March 2022 the Environment Agency issued a new charging framework for businesses, including water companies and farmers, that abstract more than 20m3


● Modernising the water abstraction licensing system through digital transformation.


of water a day from a river, stream,


canal or groundwater. The agency says it will provide a fairer system where people pay for the services they receive, those abstracting a lot of water will pay more, and it will help protect the environment and England’s long-term water supply. The EA says that England is facing


increased pressure on its water resources due to population growth and climate change. Without action, by 2050 significant water shortages in parts of the country have been predicted and some rivers could have between 50-80% less water during the summer. Based on recent projections, more than 3.4 billion additional litres per day will be needed in England by then, an increase of 23% on today’s supplies. The agency says it needs strong and effective water management to secure future water supplies, protect users’ access and manage drought, as well as requiring greater co-ordinated effort between regulators and the businesses that use water.


The new charges – which the EA says


have not changed for the past 10 years – will be based on: ● The volume of water taken from the environment.


● Where the water is taken from. ● How much of that water is returned to the environment.


The new charging framework will secure £25 million in additional income each year to protect access to water and meet environmental challenges. The increase in funding from charges will enable further investment by the Environment Agency in: ● Protecting future supplies through maintaining and operating infrastructure, including water transfer schemes, gauging stations, weirs and sluices.


● Protecting and enhancing the environment through a more sustainable approach to water abstraction with increased emphasis on rare and sensitive habitats, such as England’s unique chalk streams. “The biggest long-term threat to the environment, our economy and our lifestyle is water quantity – simply having enough for people and wildlife,” says Sir James Bevan, Chief Executive of the Environment Agency. “In the face of the climate emergency, population growth and rising demand for water, we need to ensure that all those who use water, and rely on it for their business, can continue to do so now and into the future, as well as better protecting our rivers and aquifers. “As part of this we need a system that


allows us to charge fully and fairly for the services we provide to preserve water supplies and help businesses meet their needs in a sustainable way that protects the environment.”


Background The Environment Agency says the fundamental principles of the way it charges for water abstractions has not been reviewed for over 25 years. In August 2021 it released the Water Resources Charge Proposals for consultation. “We have listened to feedback around application charges and have made changes where consultation responses demonstrated there would be a barrier to delivering government environmental objectives,” the EA states. “Therefore, we have made changes to the way we will charge for hydropower schemes, heat pumps, environmental enhancement schemes and reductions to abstraction licence volumes. The changes will reduce the impact on customers making these types of applications.” Summarising feedback received for


hydropower schemes; the EA states: “Several responses commented that the proposed application charges for HEP schemes would be a barrier to entry, particularly for charities, small-medium enterprises and community schemes. Responses also raised the conflict with Net Zero outcomes and the proposed bandings not being reflective of the hydropower sector or how much effort is required to permit them. “We have engaged with HEP


stakeholders and done further analysis into the licence applications for hydropower schemes received at our permitting centre. We receive, on average, 11 new applications each year. Most applications are complex, requiring a large amount of permitting and area officer effort. “We have listened to our customers


and revisited the charges to base them on power bands and risk level, whilst still reflecting our costs. Determining an HEP licence is complex and takes time due to considerable and wide-ranging risks to the environment. The Environment Agency needs to assess the impacts of the scheme on the hydrology of the river such as: ● The creation of depleted reaches. ● Geomorphological impacts to riverbeds and weir pool.


● Fisheries impacts including spawning and migration.


● Protected sites and species including habitats directive sites.


● Impacts to other abstractions and other lawful users.


Unlike most other abstractors, HEP customers generating less than 5MW will continue to be exempt from annual subsistence fees. Guidance and pre- application advice are available to make sure proposed schemes are viable for taking forward. We support sustainable growth and the contribution made by renewables, but this must be done in a way that continues to safeguard the environment.”


26 | April 2022 | www.waterpowermagazine.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37