Norwegian hydropower considers itself strong on sustainability, but a study from the research center HydroCen shows significant variation in how the hydropower industry handles challenges related to environmental measures.
Norway is one of the world’s largest producers of hydropower, with 90% of the country’s electricity generated by this renewable energy source. Hydropower thus plays a key role in achieving climate change goals, while also safeguarding biodiversity and ecosystems in and along rivers and reservoirs. Watercourse regulation affects fish and other species, making environmental measures such as fish passages and minimum water flow essential for sustainable development.
New requirements form the EU and Global Biodiversity Framework Create Uncertainties
A report titled Sustainability in Hydropower shows that the industry rates its own sustainability as high, but many hydropower companies are uncertain on how to adapt to new regulations for sustainable financing and environmental adaptation.
"Although companies aim to become even greener, they face obstacles such as high costs and uncertainty regarding new technical requirements," says NINA researcher Berit Köhler, who was the heading the project Politics and Society at the FME HydroCen, the Norwegian research center for renewable energy.
Large Differences in Levels of Ambition
The study reveals that several companies in the hydropower sector have high ambitions for 2030, including a greater focus on environmental measures and adapting to new EU regulations. However, researchers also found significant differences in how the hydropower industry plans environmental initiatives.
"Some companies are proactive and invest in environmental measures regardless of regulatory requirements, while the majority take a more wait-and-see approach," says Köhler.
Regulatory mandates and economic incentives are the main drivers for implementing environmental measures, while high costs and a lack of technical knowledge are significant barriers. One discourse in the industry is also the interpretation of the EU taxonomy. Indeed, there are major variations in what companies report as environmentally sustainable, which may be due to unclear regulations.
The EFTA Surveillance Authority (ESA) has expressed dissatisfaction with Norway’s implementation of environmental measures in the hydropower sector and is considering taking the case to the EFTA Court. The criticism concerns, among other things, unequal treatment of older and newer hydropower plants, as well as the slow implementation of licensing revisions.
Five Recommendations
The report recommends several measures to ensure Norwegian hydropower maintains its position as a sustainable energy source:
- Strengthening Regulatory Frameworks: Providing clear and consistent guidelines to help companies meet sustainability standards.
- Economic Incentives: Offering financial support and incentives for companies investing in sustainable technologies and practices.
- Enhancing Social Acceptance in Future Projects: It is recommended that hydropower companies invest in:
- Early and continuous involvement of stakeholders.
- Developing solutions that provide both local benefits and environmental considerations.
- Open and transparent communication, explaining how projects contribute to both global climate goals and local needs.
- Promoting Best Practices: Sharing successful case studies and best practices to encourage broader implementation of sustainable measures.
- Future Research: Continuing planned research under the research center FME RenewHydro will provide more knowledge that is in demand.
Social Acceptance – A Key to Success
A central theme in the report is the need for social acceptance. For hydropower projects to be sustainable in the long term, they must be anchored in local communities’ needs and interests. Open processes and early stakeholder involvement are highlighted as crucial factors.
"For Norwegian hydropower to remain a sustainable energy source, not only technological solutions are needed but also a clear strategy on how environmental measures should be implemented in an economically and regulatory predictable manner. Our study shows that the industry has great ambitions, but uncertainty regarding regulations and financing may slow down the necessary transition. It is crucial that authorities and the industry work together to create clear framework conditions for a greener hydropower sector," says Köhler.
Contact person: Berit Köhler
Report: Sustainability in Hydropower: How Norwegian Hydropower Producers Assess and Handle New Opportunities. HydroCen Report 54. Köhler, Berit; Ruud, Audun; Rønning, Bente.
At the HydroCen research center, several studies have explored methods and opportunities to make hydropower more environmentally friendly, including: