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86 CHAPTER 10 REGIONAL ASPECTS large dams and a number of large reservoirs in Europe (EEA, 2009). Hydropower has been a particularly dominant aspect of industrial development in the northern and Alpine countries. The renaissance in expanding pumped storage capacity in Europe (Figure 10.1) is driven by the increasing share of intermittent electricity sources, such as wind and solar, in the energy mix, which stored electricity helps to integrate. The increasing development of renewable energy sources is spurred by the Renewable Energy Directive,25 which lays down legally binding targets; notably, a 20% share of renewable energy in the EU by 2020. There are significant new development projects in the pipeline in South-Eastern Europe, Eastern Europe, the Caucasus and Central Asia. High investment requirements and environmental impacts of large-scale projects have increased interest in the construction of small-scale hydropower installations, especially in remote rural areas. But there are some barriers to this approach. For example, in Albania, where most energy is produced by hydropower, small individual projects are not necessarily well structured (reducing their appeal to investors), equity capital is lacking, and capacity and public awareness are low (UNECE, 2009). 10.2 Conflicts over water use between energy and other sectors, and across borders In parts of the UNECE region, conflicts exist over water for irrigated agriculture (over the growing season) and for hydropower generation (particularly in winter). For transboundary rivers, it may be particularly difficult for the multiple countries affected to reconcile their different uses over different time periods regarding flow regulation, 24 The European Economic Area includes the EU, Iceland, Norway and Liechtenstein. 25 Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources. 10.1 Pumped storage capacity in Europe (data from the beginning of 2011) FIGURE Source: ecoprog, The European Market for Pumped Storage Power Plants 2011/2012. Above 5 000 MW Up to 5 000 MW Up to 2 000 MW Up to 1 000 MW No pumped storagePDF Image | Water and Energy
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