As of 1 January 2019, new regulations on water environments and hydropower have come into force. These changes to the Swedish Environmental Code aim to ensure that hydropower operations are subject to modern environmental conditions. This may affect operators of hydropower plants and associated regulation dams. Below is a simplified explanation of the new rules; however, specific applicability must be assessed on a case-by-case basis.
Key Implications of the New Regulations
The new rules mean that all hydropower-related water operations in Sweden—active and in some cases decommissioned—must operate under modern environmental conditions. A “modern” permit is defined as one issued under the Environmental Code and not older than 40 years. Older permits must be reviewed at the operator’s initiative.
The goal is twofold:
To secure an efficient national supply of hydropower electricity, and
To ensure environmentally adapted water flows, including minimum flow requirements in natural channels and safe fish passage at dams and plants.
Is Your Operation Affected?
The government has been tasked with developing a national plan for reviewing hydropower operations. This National Plan for Reassessment (NAP) includes both guidance for balancing environmental and energy needs and a timetable for reviewing individual operations.
Approximately 2,100 hydropower plants in Sweden contribute to 45% of the country’s electricity. All will eventually require modern environmental permits. Operators are responsible for ensuring their permits are up to date (i.e., less than 40 years old).
Operator Obligations
Operators may register their facilities under the NAP. The registration deadline was 1 July 2019. Facilities that are included in the NAP follow a reassessment schedule from 2021–2040.
Operators who do not register must apply for a new permit with the Land and Environment Court (Mark- och miljödomstolen) as soon as possible. This process requires an environmental investigation, which will form the basis for the new conditions. These conditions must take into account energy production, water ecology, cultural heritage, applicable environmental quality standards, and competing interests.
Facilities included in the NAP may continue operation under current permits until reassessment takes place as scheduled.
Funding Support
Financial support is available through the Hydropower Environmental Fund (Vattenkraftens Miljöfond), established by eight major energy companies. Only operations registered under the NAP may be eligible for reimbursement of reassessment, implementation, and production loss costs.
The County Administrative Board (Länsstyrelsen) determines whether a facility qualifies for inclusion in the NAP.
How We Can Help
The reassessment process culminates in a court decision on the new conditions for your operation. The required investigation must be comprehensive and robust. Many permit processes are delayed due to insufficient documentation.
At Fylgia, we can support you throughout the reassessment process. With our litigation experience and environmental permitting expertise, we work with skilled environmental consultants to help prepare and review the necessary documentation. Together, we help ensure the process is as smooth and efficient as possible.
