As South-East Europe (SEE) navigates the complexities of energy transition and decarbonization, hydropower emerges as a vital component in ensuring system stability. With rising demands for flexible energy solutions, hydropower continues to be the most dependable renewable energy source in the region, crucial for balancing the variability of other renewables and maintaining security of supply.
Recent data indicates that hydropower constituted approximately 26% of total electricity generation in the first half of April 2026, solidifying its status as the leading renewable contributor within the SEE energy landscape. Unlike solar and wind energy, which are subject to fluctuations, hydropower offers a dispatchable and flexible output that is essential for grid stability and optimizing electricity exports.
The resilience of hydropower generation is evident from recent trends. In early April, output increased by 255 MW, compensating for reductions in coal and gas production while bolstering regional electricity exports. This adaptability is particularly significant as SEE moves towards integrating higher proportions of intermittent renewable resources.
Romania stands out as a leader in hydropower within the region. The state-owned company Hidroelectrica has commenced controlled filling of the Vidraru reservoir and has awarded a contract to Siemens Energy for modernizing the Iron Gates I hydropower plant. These initiatives reflect Romania’s ongoing commitment to being a major electricity exporter and a competitive player in low-carbon energy production across Europe.
In Bosnia and Herzegovina, hydropower remains fundamental to the national energy framework. The Višegrad hydropower plant reported a generation of 94.7 GWh in March 2026, contributing to a total output of 400.4 GWh in the initial months of the year. With an installed capacity of 315 MW and an annual average production around 1,010 GWh, this facility plays a critical role in ensuring regional electricity supply.
Montenegro is also making strides in expanding its hydropower capabilities through strategic partnerships. Ongoing discussions between state utility EPCG and France’s EDF regarding the Kruševo hydropower project highlight growing international interest in Montenegro’s renewable potential. Such collaborations indicate Montenegro’s intent to utilize hydropower for enhancing export capacity and securing long-term energy needs.
In Albania, efforts are underway to modernize grid infrastructure to better support hydro-centric generation systems. The European Bank for Reconstruction and Development has increased funding for a new underground substation in Tirana, which will enhance the country’s capacity to integrate renewable outputs and improve overall network resilience.
Beyond SEE, Slovenia is investing in innovative renewable technologies, including floating solar initiatives that complement existing hydropower reservoirs, aligning with broader European trends towards hybrid renewable systems.
As the penetration of renewables continues to rise, the strategic importance of hydropower is anticipated to increase further. Its capability to deliver ancillary services such as frequency regulation and peak-load balancing positions it as an indispensable asset within a decarbonizing energy framework. Moreover, hydropower’s role in facilitating cross-border electricity trade enhances SEE’s significance as a key player in Europe’s energy transition.
The ongoing modernization efforts, strategic partnerships, and heightened demand for flexible energy solutions suggest that hydropower will remain integral to South-East Europe’s electricity system well into the next decade.
