| Spotlight
Lack of political focus on development. A focus on other forms of renewables such as wind and solar power has hindered progress within the sector, particularly when policies and financial incentives offered for renewable energy do not apply to SHP.
Difficulties in finding sustainable sources of financing. Small hydro is often perceived as high risk by private investors and projects in developing countries are often supported through grants or soft loans from foreign development institutions or other countries, which isn’t a sustainable financing model. Lack of policies and regulations supporting development. Many countries still lack appropriate and well-defined pathways to achieve renewable energy targets that would be aligned with the development plans of other sectors such as water and the environment. Lack of incentives for investors and developers. It is crucial that incentive policies should be tailored to the specific needs of a country as poorly selected and structured incentives can have more of a negative than a positive effect on small hydro development. Negative public perception. While small hydro does not incur the same environmental costs as large hydropower projects, it nonetheless tends to suffer from a similarly poor public image. The importance and advantages of SHP as a solution to rural electrification and inclusive sustainable industrial development are still underestimated. With the above barriers to development in mind, WSHDR2022 suggests the following recommendations need to be taken into consideration: Undertake detailed resource assessments. Developing countries should undertake detailed analyses of their small hydro potential to lower development costs and encourage private investment. Developed countries would similarly benefit from undertaking detailed re-assessments to account for new technologies, ecological conditions, regulations as well as the potential arising from the conversion of existing infrastructure and the rehabilitation of old sites. Develop appropriate policies and regulations. Policies and financial incentives already established for other sources of renewable energy should be extended to cover small hydro and be properly designed to account for local conditions and draw on collaboration among agencies responsible for water resources, environment and electricity. Government agencies should also streamline the licensing process by creating a one-stop shop for standardised permits and contracts. Facilitate access to sustainable sources of financing. An overall strategy aiming to reduce the financial risks for investors should be developed. Creating awareness of small hydro among local banking institutions or microfinance institutions to improve the risk assessment and provide conducive loan conditions will be helpful. Improve access to equipment and technology. The building or improvement of industries that serve as components of SHP will aid in the overall development of the sector. In countries with insufficient local technology, access to imports can be aided through the establishment of
conces¬sionary duties and reduced import taxes. Provide reliable infrastructure. Developing robust grids with suitable capacity and coverage to accommodate new small hydro is critical for attracting private investment. In countries with high distribution losses, investments in distribution systems should match those in the generation, to raise the overall efficiency of projects. Improve local skills and expertise. By increasing local capacities in conducting feasibility studies, construction, operation and maintenance of plants, the whole small hydro sector can become more self-sufficient and long-lasting for countries. Strengthen international and regional cooperation. Promotion by international and regional institutions is essential for mainstreaming small hydro as a positive renewable energy solution. By developing South-South cooperation and triangular cooperation among developing countries, developed countries and international organisations, international and regional agencies can facilitate the tran¬sition of individual pilot projects towards the successful implementation of full-scale small hydro programmes.
Gender impacts Few studies have previously documented the gender
impacts of the development and use of small hydro power, but according to the World Small Hydropower Development Report, there is emerging evidence that it can empower women and girls around the globe, helping to close gender gaps. Discussing the barriers to women’s participation in the sector, the 2022 report makes key recommendations based on a literature review and interviews undertaken with various stakeholders across Africa, Asia, Latin America, and Europe.
Although women are often excluded from participating in decision-making regarding the development of infrastructure and governance, the often-decentralised nature of small hydro means that decisions can be made at a local level where a gender approach to development presents an opportunity for female involvement. Women’s participation in hydropower development can also influence decision-making and governance beyond small communities as was recently shown in central Bosnia and Herzegovina. Here women protested about the construction of the 1.5MW Luke hydropower plant which was perceived to threaten the Kruščica River, including the community’s fresh
Below: Small hydropower capacity and potential
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