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Hydropower’s Role in Stabilizing South-East Europe’s Electricity System

As the energy landscape in South-East Europe (SEE) evolves, hydropower emerges as a vital component for maintaining electricity system stability. This renewable resource is increasingly recognized for its reliability, particularly in the context of rising demands for flexibility and decarbonization across the region. Recent data indicates that hydropower is integral to balancing the variability associated with other renewable sources, while also facilitating cross-border electricity trade and ensuring supply security.

In the first half of April 2026, hydropower contributed approximately 26% of total electricity generation in SEE, reinforcing its status as the predominant renewable energy source in the region. Unlike solar and wind energy, which are subject to fluctuations, hydropower offers dispatchable output that is essential for grid stability and optimizing exports.

Production metrics from early April reveal a notable increase in hydro generation by 255 MW, compensating for reductions in coal and gas outputs. This adaptability is critical as SEE transitions towards an energy mix with a higher proportion of intermittent renewables, thereby enhancing regional electricity exports.

Romania continues to lead in hydropower capacity within SEE. The national utility Hidroelectrica has commenced controlled filling operations at the Vidraru reservoir and has awarded a contract to Siemens Energy for significant upgrades at the Iron Gates I hydropower plant. These modernization efforts are indicative of Romania’s strategy to sustain its role as a leading electricity exporter and maintain competitiveness within Europe’s low-carbon energy sector.

In Bosnia and Herzegovina, hydropower remains fundamental to the national energy framework. The Višegrad hydropower plant achieved a generation output of 94.7 GWh in March 2026, contributing to a total of 400.4 GWh produced during the initial months of the year. With an installed capacity of 315 MW and an average annual output of around 1,010 GWh, this facility plays a crucial role in stabilizing regional power supplies.

Montenegro is actively pursuing expansions within its hydropower sector through strategic partnerships. Ongoing negotiations between state-owned utility EPCG and France’s EDF regarding the Kruševo hydropower project reflect increasing international interest in Montenegro’s renewable capabilities. Such initiatives underscore Montenegro’s objectives to harness hydropower for enhanced export potential and long-term energy security.

Albania is also advancing its grid infrastructure modernization efforts to accommodate its hydro-centric generation profile. The European Bank for Reconstruction and Development has increased financing for a new underground substation in Tirana, aimed at bolstering Albania’s capacity to integrate renewable energy sources while enhancing network resilience.

<pIn Slovenia, investments are being made into innovative renewable solutions such as floating solar projects that complement existing hydropower reservoirs. This trend aligns with broader European movements towards hybrid renewable systems that maximize efficiency across diverse energy sources.

The increasing penetration of renewables positions hydropower as an even more strategically important asset moving forward. Its capability to deliver ancillary services such as frequency regulation and peak-load balancing is vital within a decarbonizing energy framework. Additionally, hydropower’s function in facilitating cross-border electricity exports reinforces SEE’s significance as a contributor to Europe’s overall energy transition strategy.

With ongoing investments in modernization, strategic collaborations, and an escalating demand for flexible energy solutions, hydropower is poised to remain a cornerstone of South-East Europe’s electricity infrastructure well into the next decade.

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