The countries of the Energy Community Treaty have diverse energy mixes, but hydropower has traditionally played a strong role in many of them. Albania is almost completely reliant on dams for its domestic electricity generation, followed by Georgia with an average of 80 per cent of electricity generated by hydropower and Montenegro with an average of 55 per cent.
Stay informed
We closely follow international public finance and bring critical updates from the ground.
Background
The countries of the Energy Community Treaty have diverse energy mixes, but hydropower has traditionally played a strong role in many of them. Albania is almost completely reliant on dams for its domestic electricity generation, followed by Georgia with an average of 80 per cent of electricity generated by hydropower and Montenegro with an average of 55 per cent.
But what started as a strength is becoming a liability. More and more erratic rainfall is exposing how vulnerable hydropower is to climate change, while its damaging impacts on biodiversity, groundwater and sediment transportation are becoming better understood.
This has not stopped decision-makers’ zealous plans to develop the sector, including in countries like Ukraine hydropower has not traditionally played a major role. Decades-old projects are still being pushed against all economic and environmental logic, while a rash of small hydropower plants driven by feed-in tariff schemes has destroyed rivers and streams across southeast Europe.
The good news is that there are alternatives, with lower costs for the environment and also, increasingly, for the public purse, and that resistance to the unnecessary destruction of life-giving rivers is increasing day by day.
IN FOCUS
Latest news
The damage from Slovenia’s Mokrice dam won’t stop at the Croatian border
Story | 27 May, 2026Slovenia’s state-owned Hidroelektrarne na Spodnji Savi (HESS) has for two decades been trying to build the controversial Mokrice hydropower plant on the river Sava. But poor quality environmental studies have been repeatedly quashed in court by the Slovenian Native Fish Society, and a recent transboundary assessment’s claims that the impacts will stop at the Croatian border are far from convincing.
Read moreObstacles pile up for the Dabar hydropower plant in Bosnia and Herzegovina: Time to rethink the whole Upper Horizons complex
Story | 14 May, 2026When the Republika Srpska authorities signed contracts with the China Eximbank to finance the Dabar hydropower plant at the end of 2021, it seemed like the first and largest part of the Upper Horizons complex was a done deal. Today, more than four years later, obstacles are piling up for this controversial project, providing a much-needed opportunity to rethink the whole idea.
Read moreDon’t look, don’t find: Buk Bijela’s ‘environmental impact assessment’
Story | 2 March, 2026Bosnia and Herzegovina’s Upper Drina hydropower scheme would turn 30 kilometres of this iconic river into stagnant reservoirs and cut a key Danube Salmon habitat into pieces. Its largest dam would be the 118-megawatt Buk Bijela, first proposed in the 1970s but repeatedly scuppered due to its impact on Montenegro’s Tara Canyon. Now a new environmental assessment is out for public consultation, but it’s being more than economical with the truth.
Read moreRelated publications
Gender impacts of the Shuakhevi hydropower project in Georgia and its compliance with EBRD requirements
Study | 31 October, 2016 | Download PDFA majority of the local population protests against the construction of the Shuakhevi HPP for various reasons, including issues related to land and water “grabbing”, geological risks posed by construction works, employment problems, etc. The purpose of
Gender impacts of the Nenskra hydropower plant, Georgia
Study | 31 October, 2016 | Download PDFBased on the analysis of the project documentation, independent media reports, surveys and discussions with local civil society revealed that the Nenskra project represents the perfect example of a gender blind project, where the project sponsor fails
Georgia swept by protests against EBRD-backed hydropower
Briefing | 11 May, 2016 | Download PDFProtests have in recent weeks broken out across rural Georgia after construction resumed on several large hydropower projects financed by the European Bank for Reconstruction and Development (EBRD). Demonstrators have complained that the projects were repeatedly decided behind closed doors, and that poor assessments of the social and environmental consequences mean their livelihoods are under threat.




