Anja S. Ibrekk Norwegian Water Resources and Energy Directorate CEA Workshop, Brussels, Dec 21 2005 Cost Effectiveness Analyses – Suldal PRB Anja S. Ibrekk Norwegian Water Resources and Energy Directorate

Outline of the presentation Water issues in the Suldal PRB CEA methodology in regulated river basins Relevant activities undertaken Challenges

“Water issues” in the Suldal PRB Heavily impacted by hydropower regulations Half of the water bodies are ”heavily modified” Various mitigation measures undertaken (water flow regime, fish ladders, fish stocking, weirs) Unclear long-term effects (in spite of extensive research) Acidification – declining tendency Insignificant local sources of pollution Uses beside electricity production: famous salmon river, fishing, hiking, skiing, rafting

CEA in regulated river basins CEA not used in a systematic way, although costs and effects of measures are included in the analysis to decide the environmental requirements for the hydropower companies. Important to build on existing licensing process where the use of water is important (electricity supply, fishing, hiking, skiing (safe ice)) – the links between use and ecological status/potential need to be studied. Effects will most likely be described in qualitative or semi- quantitative way (+, ++, +++) Effects on the whole river basin might be considered more thoroughly.

Activities in regulated river basins in Norway – linked to CEA methodology Systematic national overview of effects and costs of measures already taken (categorised by regulation methods and water types). Finish March 06. Document procedures and assessment in two real cases of revision of existing concession. Finish autumn 06 (?). Setting environmental objectives (ecological potential) based on effects of potential measures. Assess exemptions based on both benefits and costs. Finish: September 06. Test national CEA methodology in regulated river basin. Finish autumn 06.

Challenges 1 NEW methodology – need to test how it works How to “translate” existing focus on the user conflicts to ecological quality elements? Effects on what? Harmonise existing procedures on licensing with the WFD requirements

Challenges 2 How to link other elements (instruments, political acceptance etc) than CEA (costs and effects) to the programme of measures How to link local CEAs to the regional management plan - develop good procedures and coordination How to link local and regional programmes with national policy and political framework (e.g. not to reduce hydropower production with more than x % in total or the Renewable Energy Directive)

To conclude Ongoing national projects on CEA related to regulated rivers that will be reported through the PRB network. Finish first methodology autumn 2006, will be developed further for the next planning cycle. Expectations from the drafting group: Show a range of examples on performed CEAs Various ways to assess effects of measures and dose-response relationships Better described links between CEA, environmental objectives and exemptions Develop common understanding on the difference between CEA and CBA