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
Don’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 moreKambarata hydropower project: greater scrutiny from international banks is needed
Blog entry | 19 December, 2025Kyrgyzstan is promoting the massive 1,860 MW Kambarata-1 Hydropower Plant (HPP) as a solution to its ongoing energy crisis. The project, a joint effort with Uzbekistan and Kazakhstan on Naryn River, is actively seeking funding from international financial institutions like the World Bank, the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).
Read moreAlbania’s Skavica dam can’t get off the ground – time to finally cancel it!
Blog entry | 24 November, 2025The highly damaging hydropower project could hardly have had stronger political support at its inception, with the country’s parliament passing a special law in 2021 to appoint U.S. construction giant Bechtel as the main contractor. But four years later, the project has stagnated, with no environmental permit and no financing.
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.
