{"query_echo":{"q":"","filters":{"geography":["Vjosa River"]},"warnings":[{"code":"facet_value_not_in_vocabulary","message":"Value 'Vjosa River' for facet 'geography' is not in the controlled vocabulary."}]},"total":{"value":2,"relation":"eq"},"page":1,"page_size":20,"self":"https://climateinsightsdirectory.org/api/v1/search?geography=Vjosa+River","stability":"beta","ai_marking":{"digital_source_type":{"uri":"http://cv.iptc.org/newscodes/digitalsourcetype/trainedAlgorithmicMedia","name":"Created using Generative AI"},"notice":"Summary and key insights are generated using artificial intelligence."},"results":[{"id":"iisd-000656","url":"https://climateinsightsdirectory.org/document/iisd-000656","title":"Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects","publisher":{"name":"International Institute for Sustainable Development","organization":"international-institute-for-sustainable-development"},"document_type":"report","language":"en","date_published":"2020-07-10","source_url":"https://www.iisd.org/publications/savi-hydropower-albania","generator":"Climate Insights Directory","generated_fields":["summary","key_insights","climate_tags","analysis_type"],"summary":{"text":"The SAVi assessment concludes that the Poçem and Kalivaç hydropower projects are not preferable electricity solutions for Albania, as their lifetime costs, societal burdens, and tax losses outweigh their benefits. The analysis shows negative cost-benefit results of EUR 233 million for Poçem and EUR 321 million for Kalivaç, driven by adverse effects on ecosystems, agriculture, and tourism along the Vjosa River. Financial analysis indicates that these projects are not financially attractive based on domestic market offtake prices, with an internal rate of return (IRR) of 9.32% falling below the 13.5% hurdle rate. The report suggests that solar photovoltaic energy represents a more beneficial and viable alternative for generating comparable electricity in Albania.","ai_generated":true,"unit":"iisd-000656#summary","date_modified":"2026-10-23"},"key_insights":[{"text":"The Poçem and Kalivaç hydropower projects result in negative cost-benefit outcomes, with Poçem amounting to negative EUR 233 million and Kalivaç to negative EUR 321 million, due to adverse impacts on the Vjosa River's ecosystems and economic sectors like tourism and agriculture.","ai_generated":true,"unit":"iisd-000656#insight-1","date_modified":"2026-10-23"},{"text":"Integrating valued externalities significantly increases the levelized cost of electricity (LCOE) for both projects; Poçem rises from EUR 121 to EUR 184 per MWh, and Kalivaç rises from almost EUR 158 to EUR 203 per MWh. These costs increase further if climate change risks materialize.","ai_generated":true,"unit":"iisd-000656#insight-2","date_modified":"2026-10-23"},{"text":"The projects are not financially attractive for the domestic market, as the project internal rate of return (IRR) of 9.32% is lower than the 13.5% hurdle rate. The IRR drops to 3.15% when sediment dredging costs are included and becomes negative if externalities are internalized.","ai_generated":true,"unit":"iisd-000656#insight-3","date_modified":"2026-10-23"},{"text":"Solar photovoltaic energy is identified as a more viable and beneficial alternative for generating a similar amount of electricity in Albania than the two hydropower assets.","ai_generated":true,"unit":"iisd-000656#insight-4","date_modified":"2026-10-23"}],"climate_tags":["hydropower","photovoltaics","onshore wind farm","climate risk"],"geography_discussed":[],"frame_perspective":[],"analysis_type":["cost-benefit analysis","financial analysis"]},{"id":"iisd-002013","url":"https://climateinsightsdirectory.org/document/iisd-002013","title":"Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects","publisher":{"name":"International Institute for Sustainable Development","organization":"international-institute-for-sustainable-development"},"document_type":"report","language":"en","date_published":"2020-06","source_url":"https://www.iisd.org/system/files/2020-08/savi-hydropower-albania.pdf","generator":"Climate Insights Directory","generated_fields":["summary","key_insights","climate_tags","geography_discussed","analysis_type"],"summary":{"text":"The SAVi assessment finds that the Kalivaç and Poçem hydropower projects (HPPs) are uneconomic, producing higher costs and societal burdens than benefits. When integrating externalities, the HPPs' levelized cost of electricity (LCOE) is more than 2.5 times higher than that of solar PV. The report highlights significant negative externalities, particularly the loss of agricultural land and tourism potential along the Vjosa River, and notes that the projects are not financially attractive at domestic electricity prices of EUR 55/MWh.","ai_generated":true,"unit":"iisd-002013#summary","date_modified":"2026-10-23"},"key_insights":[{"text":"The cost-benefit analysis (CBA) indicates that both the Poçem and Kalivaç hydropower plants (HPPs) are uneconomic, with total costs exceeding benefits. The final SAVi net results, which include externalities, are negative EUR 233 million for HPP Poçem and negative EUR 321 million for HPP Kalivaç.","ai_generated":true,"unit":"iisd-002013#insight-1","date_modified":"2026-10-23"},{"text":"Solar PV is identified as the most beneficial and viable energy alternative in Albania. Its integrated LCOE is significantly lower than that of the HPPs, and its CBA result (negative EUR 75.6 million) is approximately 7.3 times less negative than the combined results of the two HPPs.","ai_generated":true,"unit":"iisd-002013#insight-2","date_modified":"2026-10-23"},{"text":"The most significant negative externalities are caused by the inundation of agricultural land for the reservoirs, resulting in a foregone value added of EUR 174 million. Additionally, foregone tax revenues from agriculture are estimated at more than EUR 26 million over the assets' lifetimes.","ai_generated":true,"unit":"iisd-002013#insight-3","date_modified":"2026-10-23"},{"text":"The construction and operation of the HPPs are expected to cause a loss of tourism potential along the Vjosa River, valued at more than EUR 10 million over the lifetime of both plants, rising to over EUR 22.5 million if a lower discount rate (6.75%) is applied.","ai_generated":true,"unit":"iisd-002013#insight-4","date_modified":"2026-10-23"},{"text":"Sediment dredging is a critical and expensive operational requirement to maintain capacity. For HPP Kalivaç, which is the first reservoir in the river course, dredging costs during the concession period are estimated at more than EUR 140.3 million, accounting for over 40% of its conventional LCOE.","ai_generated":true,"unit":"iisd-002013#insight-5","date_modified":"2026-10-23"},{"text":"At a domestic electricity offtake price of EUR 55 per MWh, the HPPs are not financially attractive, with a project IRR of 9.32%, which is below the required hurdle rate of 13.5%. To achieve a project NPV of zero in the baseline scenario, the price would need to be EUR 78.47 per MWh, or EUR 108.39 per MWh if dredging costs are included.","ai_generated":true,"unit":"iisd-002013#insight-6","date_modified":"2026-10-23"},{"text":"Climate change projections indicate a decline in precipitation (averaging 20 mm less per month by 2100), which reduces electricity generation potential and revenues. While this also lowers some costs (like dredging), the overall impact on the financial performance of the HPPs is adverse.","ai_generated":true,"unit":"iisd-002013#insight-7","date_modified":"2026-10-23"},{"text":"The HPPs pose severe threats to the biodiversity of the Vjosa River, including the disruption of migratory fish species like the critically endangered European eel and the potential for coastal erosion at the Adriatic Sea due to disrupted sediment transport.","ai_generated":true,"unit":"iisd-002013#insight-8","date_modified":"2026-10-23"}],"climate_tags":["hydropower","photovoltaics","climate change","precipitation","greenhouse gas emissions","biodiversity loss","ecosystem service","climate finance"],"geography_discussed":["Adriatic Sea","Greece"],"frame_perspective":[],"analysis_type":["integrated cost-benefit analysis","financial analysis","system dynamics simulation","environmental impact assessment"]}]}