Hydropower continues to underpin electricity system stability across South-East Europe (SEE), reinforcing its status as the region’s most reliable renewable energy source amid rising demand for flexibility and decarbonisation. Recent developments confirm that hydro remains central to balancing intermittent renewable generation, supporting cross-border trade, and ensuring security of supply.
According to regional power system data, hydropower accounted for approximately 26% of total electricity generation during the first half of April 2026, maintaining its position as the largest renewable contributor in the SEE energy mix. Unlike solar and wind, which exhibit significant variability, hydro provides dispatchable and flexible output essential for grid stability and export optimization.
Hydropower production trends highlight its resilience. During early April, hydro generation increased by 255 MW compared with the preceding period, offsetting declines in coal and gas output and supporting regional electricity exports. This flexibility is particularly valuable as SEE transitions toward higher shares of intermittent renewables.
Romania remains one of the region’s hydro leaders. Hidroelectrica initiated the controlled filling of the Vidraru reservoir and awarded a key transformer contract for the modernization of the Iron Gates I hydropower plant to Siemens Energy. These upgrades underscore Romania’s commitment to maintaining its position as a major electricity exporter and one of Europe’s most competitive low-carbon producers.
In Bosnia and Herzegovina, hydropower continues to serve as a cornerstone of the energy system. The Višegrad hydropower plant generated 94.7 GWh in March 2026, contributing to a cumulative output of 400.4 GWh in the first months of the year. With an installed capacity of 315 MW and average annual production of around 1,010 GWh, the facility remains a key asset in regional electricity supply.
Meanwhile, Montenegro is advancing plans to expand its hydro portfolio through strategic partnerships. Discussions between state utility EPCG and France’s EDF regarding the Kruševo hydropower project highlight growing international interest in the country’s renewable potential. Such collaborations signal Montenegro’s ambition to leverage hydropower for export growth and long-term energy security.
Elsewhere in the region, Albania continues to modernize its grid infrastructure to support hydro-dominated generation. The European Bank for Reconstruction and Development has expanded financing for a new underground substation in Tirana, further strengthening the country’s ability to integrate renewable output and enhance network resilience.
Beyond SEE, Slovenia is also investing in innovative renewable solutions, including floating solar projects designed to complement hydropower reservoirs, reflecting a broader European trend toward hybrid renewable systems.
As renewable penetration increases, hydropower’s strategic value is expected to grow. Its ability to provide ancillary services, frequency regulation, and peak-load balancing makes it indispensable in a decarbonising energy system. Furthermore, hydro’s role in supporting cross-border electricity exports positions SEE as a critical contributor to Europe’s energy transition.
With modernization investments, new partnerships, and growing demand for flexibility, hydropower is set to remain the backbone of South-East Europe’s electricity system well into the next decade.
