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Large Hydropower Operator in SE-Europe adopts Climate Risk Management Plan developed by Pöyry

Pöyry has developed a Climate Risk Management Plan for Albania's state-owned hydropower operator Korporata Elektroenergjitike Shqiptare (KESH), which was approved by KESH's supervisory board last week in Tirana. It is a strategic approach to address the challenges posed by rising temperatures and increasing hydrological variability. Implementation of the Climate Risk Management Plan will start in January 2019.

Drin cascade in Albania, operated by KESH

The adoption of the plan is part of the terms of a €218 million loan by the European Bank for Reconstruction and Development (EBRD) to KESH to support the company's restructuring and transformation to a modern electricity generator operating in a gradually liberalised electricity market.

KESH operates a 1,350 MW hydropower cascade on the Drin River and is facing challenges due to the impact of climate change and climate variability. The climate risk management plan defines a list of structural and non-structural adaptation measures that will be implemented by KESH to mitigate climate-induced risks but also to seize opportunities arising from climate change.

The plan was developed as part of a comprehensive capacity building programme funded by the Austrian Drive fund and implemented by Pöyry together with the Swiss hydropower operator KWO. With the adoption of the Climate Risk Management Plan, KESH will become one of the first hydropower operators in Europe to address the risks of climate change through a formalised and strategic approach

Agron Hetoja, CEO of KESH, said: "Building know-how in the field of climate resilient hydropower operation is an essential element of our strategy to sustain and further develop our position as a leading electricity generator in the Western Balkan region."

Craig Davies, EBRD Head of Climate Resilience Investment, added: "We have entered an era where climate risk is real, with extreme events and changes in hydrological patterns increasingly expected. This project exemplifies how hydropower operators can take a first step at the corporate level to identify risks and opportunities to their operations."

Richard Pinnock, Vice President of Pöyry commented: "Working with KESH and EBRD on this innovative project is also an important milestone for our company, as we clearly see a rising demand for climate adaptation services in the energy sector."

Source: Pöyry Plc

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