Advan­tages of South-East Europe

Why Ali­quan­tum has select­ed loca­tions in South-East­ern Europe for its first projects is due to sev­er­al fac­tors.

Much poten­tial, so far bare­ly used

On the one hand, thanks to a moun­tain­ous topog­ra­phy, this region has an out­stand­ing hydro­elec­tric poten­tial, which is still large­ly unused. Almost two-fifths of the eco­nom­i­cal­ly viable hydropow­er poten­tial is still unused even in the whole of Europe — even though hydro­elec­tric pow­er is the dom­i­nant source of renew­able ener­gy world­wide, there are still three-fifths in South-East­ern Europe (SOE). On the oth­er hand, the region con­vinces by ide­al con­di­tions for the attrac­tive niche mar­ket of small and medi­um-sized hydro­elec­tric pow­er plants: “While the still unused hydro­elec­tric poten­tial in South-East­ern Europe is almost as great as that of the EU-15, the poten­tial for small-scale hydro­elec­tric pow­er plants in Ser­bia is still 90% unde­vel­oped”, says Deutsche Bank’s analy­sis of hydropow­er in 2010 and describes a sit­u­a­tion which, accord­ing to project expe­ri­ence, has not lost its rel­e­vance.

Eco­nom­i­cal­ly viable poten­tial

The fact that around 60 per­cent of the eco­nom­i­cal­ly viable hydropow­er poten­tial still awaits investors and that the region spent more than half a cen­tu­ry on large­ly planned large-scale struc­tures in the pow­er sup­ply now offers many inter­est­ing project pos­si­bil­i­ties, which are only iso­lat­ed in the rest of Europe.

Pol­i­tics is based on renew­able ener­gies

The pol­i­cy is anoth­er dimen­sion in which hydropow­er can score. For exam­ple, Serbia’s acces­sion nego­ti­a­tions with the EU have strength­ened the country’s pol­i­cy of pro­mot­ing renew­able ener­gies in the coun­try. The Ser­bian gov­ern­ment is plan­ning to increase about 50 pow­er plants to 750 plants by 2030 in the frame­work of the nation­al ener­gy strat­e­gy. This will ben­e­fit renew­able ener­gy projects Still today from feed-in con­tracts, which are known in Ger­many only from the past: elec­tric­i­ty from hydropow­er is cur­rent­ly being remu­ner­at­ed in Ser­bia with around eleven cents; The state-guar­an­teed feed-in tar­iff of the EU acces­sion coun­try runs for twelve years. Here is a clos­er look at the remark­able data of the acqui­si­tion con­tract of the assets between Ali­quan­tum and the state pow­er util­i­ty in Ser­bia:


Approx. EUR 0.105 per kW / h,


Dura­tion 12 years,


Billing in EUR,


Annu­al infla­tion adjust­ment

Share of devel­oped hydro­elec­tric pow­er


in Europe

Hydropow­er Ener­gy (Source: Deutsche Bank Research, „Wasserkraft in Europa“.)


in South-East-Europe

Solu­tion for eco­nom­i­cal­ly weak coun­tries

Hydropow­er has a strong argu­ment for coun­tries with a weak econ­o­my, as to be found often in South-East Europe: Because it does not require any fos­sil pri­ma­ry ener­gy, it relieves the ener­gy bill of those coun­tries, the safe­ty of ener­gy avail­abil­i­ty ris­es. Using Hydropow­er plants reduces the risk of even­tu­al deliv­ery inter­rup­tions, as known from nat­ur­al gas, or price dic­ta­tions as known to be used by OPEC to the sur­prise of all con­sumers.

Cur­rent cash flows

The lat­est amend­ment to the feed-in sys­tem this year has also intro­duced an ‘investor pro­tec­tion’ regime: future reg­u­la­tions can not make pro­duc­ers worse off dur­ing the con­tract peri­od. For this rea­son, Ali­quan­tum can also offer the attrac­tive returns from a long-term, secure cash flow known from Ger­many in the past and, on the oth­er hand, ben­e­fit from sub­stan­tial­ly low­er invest­ment costs com­pared to the sat­u­rat­ed mar­kets for hydropow­er, eg in the Alpine region.

Advan­tage net­work

Ali­quan­tum has been build­ing a project plat­form for the region since 2014. The com­pa­ny is there­fore rep­re­sent­ed region­al­ly with one of the lead­ing project devel­op­ers as well as with excel­lent polit­i­cal rela­tions — right up to the gov­ern­ment lev­el. The expe­ri­enced project man­ag­er of our Bel­grade team was, for exam­ple, a mem­ber of the Gov­ern­ment Com­mis­sion on the recent amend­ment of the cur­rent feed-in sys­tem.

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