Generous government subsidies that go against EU guidelines have led to a boom in small hydropower projects in the Western Balkans, impacting communities and aquatic habits, an environmental group has warned.

According to The CEE Bankwatch Network, the region witnessed a four-fold jump in hydropower plants under 10 megawatts in the last decade, resulting in widespread environmental damage with little benefit to power generation.

The number of projects spiked from 108 to at least 488 between 2009 and 2018 in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.

Often constructed in ecologically sensitive areas, the plants have led to the diversion of freeflowing rivers and streams into derivation pipes, leaving riverbeds dry and depriving local communities and animals of water sources.

Access roads and pipelines have also resulted in habitats being eroded and destroyed.

Pippa Gallop of CEE Bankwatch Network said: "It is high time to end hydropower subsidies in the Balkans. Perceptions that these schemes benefit the wealthy and fuel environmental damage endanger public acceptance of the whole transition to a sustainable and efficient energy system. 

"Those countries which have not done so urgently need to switch to more transparent schemes based on auctions and premiums to ensure affordable and proportionate incentives."

The activists have demanded a review and, where necessary, ending subsidies to small hydropower projects. 

They sought EU intervention to ensure the bloc's rules on state aid, which include provisions on environmental sustainability, are applied on Western Balkan governments that are signatory to the Energy Community Treaty and Stabilisation and Association Agreements.

Petra Remeta, Conservation programs director of WWF Adria, said: "The fact is that the Western Balkan countries have committed to apply EU subsidies rules by signing the Energy Community Treaty and Stabilisation and Association Agreements with the EU, so we call on the European Commission and the Energy Community to make sure this really happens. 

"These rules include sustainability conditions and would help to stop subsidies for the environmental destruction of European rivers".