Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects

This report presents a Sustainable Asset Valuation (SAVi) of the Poçem and Kalivaç hydropower projects on the Vjosa River in Albania, concluding that these assets generate higher costs to the state, environment, and communities than they provide in benefits.

• The SAVi assessment concludes that the Poçem and Kalivaç hydropower projects are not a preferable electricity generation solution for Albania because their generated benefits are outweighed by tax losses, societal burdens, and lifetime costs. The report suggests that solar photovoltaic is a more viable and beneficial alternative for producing a similar amount of electricity.
• Cost-benefit analyses for the two projects on the Vjosa River resulted in negative values: negative EUR 233 million for Poçem and negative EUR 321 million for Kalivaç. These results stem from adverse effects on ecosystems, communities, and economic sectors including tourism and agriculture.
• Integrating valued externalities increases the levelized cost of electricity (LCOE) for both projects. For Poçem, the cost rises from a conventional EUR 121 per MWh to EUR 184 per MWh; for Kalivaç, it rises from almost EUR 158 per MWh to EUR 203 per MWh. These costs increase further if climate change risks materialize.
• Financial analysis indicates the projects are not financially attractive based on domestic market electricity offtake prices. The project internal rate of return (IRR) is 9.32% in a conventional scenario, which is below the 13.5% hurdle rate. The IRR falls to 3.15% when sediment dredging costs are included and becomes negative if externalities are internalized.

APA

Perera,, A. B. W. U. R. (2020). Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects. International Institute for Sustainable Development. https://www.iisd.org/publications/savi-hydropower-albania

Chicago

Perera,, Andrea Bassi,Laurin Wuennenberg,David Uzsoki,Qendresa Rugova,Oshani. Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects. International Institute for Sustainable Development, 2020. https://www.iisd.org/publications/savi-hydropower-albania.

Wikipedia

{{cite report |last1=Perera, |first1=Andrea Bassi,Laurin Wuennenberg,David Uzsoki,Qendresa Rugova,Oshani |title=Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects |publisher=International Institute for Sustainable Development |date=10 July 2020 |url=https://www.iisd.org/publications/savi-hydropower-albania |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{perera2020sustainable, author = {Perera,, Andrea Bassi,Laurin Wuennenberg,David Uzsoki,Qendresa Rugova,Oshani}, title = {{Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = jul, url = {https://www.iisd.org/publications/savi-hydropower-albania}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }