Constant Concessions Under Changing Circumstances: the Water and Renewable Energy Directives and Hydropower in Sweden

The report examines the tension between Sweden's goals for renewable energy expansion (RES) and the restoration of aquatic ecosystems (WFD). It finds that the current judicial concession system, characterized by a lack of trust between operators and authorities, hinders both the efficiency gains from hydropower refurbishments and the timely implementation of environmental improvements. The author suggests that a general environmental compensation scheme could resolve these conflicts by removing the financial disincentives for operators to undergo concession reviews.

• Hydropower is the most significant source of renewable electricity in Sweden, producing nearly half of the total electricity consumed in 2008, with storage hydropower accounting for over 97 per cent of that production.
• The Swedish concession system is currently inefficient, preventing the full realization of efficiency gains from hydropower refurbishments for RES targets and making it unlikely that WFD-required changes to dams and stations will be implemented within the set timeframe.
• A high level of distrust and conflict exists between hydropower operators and public authorities, which slows down the review process and leads to strategic delays.
• The vast majority of hydropower concessions in Sweden are based on the 1918 water law, which often allows for full appropriation of water flow and lacks modern environmental considerations.
• The Legal, Financial and Administrative Services Agency (LFASA) often petitions for an 'extensive examination' during concession change trials, which can discourage operators from pursuing efficiency-increasing refurbishments to avoid the risk of stricter environmental requirements.
• The report argues that the RES and WFD are overall coherent in Sweden because the planned expansion of renewable energy relies primarily on wind power and biofuels rather than large-scale hydropower growth.
• Concerns that wind power expansion would require preserving all hydropower capacity for grid balancing are deemed overstated, as existing hydropower in northern Sweden likely provides sufficient regulating capacity.
• The author proposes an environmental compensation scheme to cover the costs of biodiversity and water status improvements, which would remove the financial incentive for operators to delay concession reviews.
• The report suggests that renewable electricity certificates could be linked to the requirement that a plant must possess a reviewed concession according to the Environmental Code and WFD to receive support.

APA

Rudberg, P. M. (2011). Constant Concessions Under Changing Circumstances: the Water and Renewable Energy Directives and Hydropower in Sweden. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/SEI-ProjectReport-Rudberg-ConstantConcessionsUnderChangingCircumstances-2011-2ndEd.pdf

Chicago

Rudberg, Peter M. Constant Concessions Under Changing Circumstances: the Water and Renewable Energy Directives and Hydropower in Sweden. Stockholm Environment Institute, 2011. https://www.sei.org/mediamanager/documents/Publications/SEI-ProjectReport-Rudberg-ConstantConcessionsUnderChangingCircumstances-2011-2ndEd.pdf.

Wikipedia

{{cite report |last1=Rudberg |first1=Peter M. |title=Constant Concessions Under Changing Circumstances: the Water and Renewable Energy Directives and Hydropower in Sweden |publisher=Stockholm Environment Institute |date=2011 |url=https://www.sei.org/mediamanager/documents/Publications/SEI-ProjectReport-Rudberg-ConstantConcessionsUnderChangingCircumstances-2011-2ndEd.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rudberg2011constant, author = {Rudberg, Peter M.}, title = {{Constant Concessions Under Changing Circumstances: the Water and Renewable Energy Directives and Hydropower in Sweden}}, institution = {Stockholm Environment Institute}, year = {2011}, url = {https://www.sei.org/mediamanager/documents/Publications/SEI-ProjectReport-Rudberg-ConstantConcessionsUnderChangingCircumstances-2011-2ndEd.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }