Development of hydropower generation as a factor of the international agenda

Sizov Andrei Andreevich PhD in Technical Science Head of the Board of Directors, JSC "LOESK" 142074, Russia, Moscow region, Domodedovo, Akulinino village, 77b lohnagar24@yandex.ru Other publications by this author

In modern conditions, international relations are influenced by a number of factors, one of which is related to the development of hydrogenation. The change in the balance of power and economic power between the West and the East, the formation of a polycentric world order are largely determined by the energy potential of the warring parties, their ability to effectively use the possibilities of renewable energy sources (RES) in conditions of increasing competition ^[1]. In this regard, renewable energy, especially hydropower, should be considered as the most environmentally acceptable and economically feasible way to ensure the energy security of many countries of the world. For example, the importance of hydropower in ensuring the energy security of the Russian Federation is illustrated by the fact that the share of hydroelectric power plants in the reserve of the regulating capacity of the UES of Russia exceeds 90%. Hydroelectric power plants in our country play a decisive role in increasing electricity generation covering peak loads ^[2].

Since the beginning of the 2000s, hydrogenation has become one of the main sources of renewable energy production growth. According to the International Association of Hydropower for 2022, the share of hydrogenation in the overall global structure has reached 17%. The total installed capacity of hydrogenation in the world is 1,360 GW – this significantly exceeds the installed capacity of nuclear power plants (380 GW) and is second only to the installed capacity of thermal power plants (2,700 GW). Since the beginning of the XXI century, hydrogenation has been steadily migrating from developed to developing countries. The active commissioning of HPP capacities occurs mainly in the countries of the Asia-Pacific region with a pronounced dominance of the PRC. The installed hydroelectric capacity of the PRC in 2021 amounted to 390.9 GW, including 36.4 GW of pumped storage capacity, compared with 233 GW in 2011 ^[3].

In 2022, the commissioning of the Baihetan hydroelectric power station on the Jinsha River was completed in China. The Baihetan HPP ranks first in the world in terms of the specific capacity of power units and second in terms of total installed capacity (16 GW), second only to the Three Gorges HPP on the Yangtze River (22.5 GW). For comparison, the output of the Russian Sayano-Shushenskaya HPP before the accident in 2009 was 6.4 GW. China is experiencing a gap between its own production and consumption of energy resources, which is due to the increasing needs of a growing economy. Baihetan should continue the cascade of stations built by the Three Gorges Group. This is a major investment project to provide electricity to hundreds of settlements, including in hard-to-reach areas of the country. China can be seen as an example of how the state has emphasized the development of energy security as a priority of socio-economic development. For example, the Chairman of the CPC of the People's Republic of China, Xi Jinping, at the ceremony for the launch of hydroelectric power units on June 28, 2021, noted: "Baihetan is the largest national project that will facilitate the transfer of electricity from the west to the east of China." This is the largest hydroelectric project under construction in the world and the most difficult from a technical point of view. All employees involved in the work of the hydroelectric power plant will continue to coordinate and promote the work of the hydroelectric power plant in order to "green" the transformation of the socio-economic development of the country" ^[4].

The example of China shows that the development of hydrogenation makes it possible to increase electricity production and reduce the country's dependence on fossil fuels. And although the share of hydroelectric power plants (18%) in the distribution of generating capacity by type of power plants is small in comparison with thermal power plants (TPPs account for 62%), the PRC confirms the desire for a variety of energy sources. For a country that is increasing industrial production from year to year, access to energy resources and the possibility of diversifying sources has a strategic goal. This is not only a vital necessity, but also a factor determining growth opportunities.

At the same time, there are regions and even entire continents that cannot solve their energy security issues on their own. According to the UN, Africa remains the least electrified in the world: 568 million inhabitants of the continent do not have access to electricity. The proportion of the population in need in sub-Saharan regions has increased to 77% in 2020. According to forecasts, the shortage of electricity and its impact on the economy and social development of the continent will remain a major problem until 2030. The availability of electricity varies widely: from Niger, where electrification was only 9% in 2011, to Cape Verde, where electricity is available almost everywhere. In countries such as Guinea or Sierra Leone, the approximate proportion of the rural population with access to electricity may be no more than 1% ^[5].

This situation on the African continent is developing despite the presence of significant mineral reserves. The hydropotential of Africa is also very high, which makes it possible to build large hydroelectric power plants of considerable capacity. This, in turn, stimulates the development of infrastructure: roads, bridges and power grids are being built. Such a scenario improves the accessibility and quality of life on the continent, helps attract investment in other sectors of the economy.

In the report of the International Energy Agency "Hydropower. Deep immersion in technology" it is argued that the greatest untapped potential of hydropower is found precisely in developing countries in Africa and Latin America, where hydropower plants are a cost-effective option not only for electricity generation, but also for expanding access to electricity, promoting economic development and providing water for irrigation, household and drinking needs. However, the possibilities of financing large-scale hydropower projects are still limited by macroeconomic risks and policy uncertainty in developing countries ^[6].

Dozens of foundations, governmental and supranational structures take part in the development of various hydrogeneration development programs. Among them are the following.

1. The Global Hydropower Alliance is an international initiative that brings together governments, international organizations, investors and other stakeholders to support the development of hydropower in the world.

2. International Union for Conservation of Nature (IUCN) – works on the assessment and management of the impact of hydropower on nature and biodiversity.

3. The International Renewable Energy Agency (IRENA) is an organization that supports the development of hydropower and other renewable energy sources through research, policy development and technical support.

5. The World Bank provides financing for hydropower projects in different countries of the world, including through programs such as the Clean Development Mechanism (CDM).

The modern European energy agenda elevates the lack of energy sovereignty of Europe to the rank of an existential threat. The process began in the 2000s, when the European Commission recognized the unsafe dependence on Russian oil and gas imports and proclaimed a course to diversify energy import sources, liberalize and integrate the domestic energy market, as well as promote environmental sustainability. To this end, the concept of "Energy Policy for Europe" (An Energy policy for Europe) was adopted ^[7], and a model of "carbon-free" energy was developed ^[8]. At the same time, Europe has set itself the task of making its principles of work on energy markets cross-border by extending new requirements to counterparties. As for the state of hydrogenation, it currently occupies 33% of the energy balance in the region, second only to the production of electricity at wind farms (36%). The HPP is followed by solar generation of 14% ^[9].

According to the report of the International Hydropower Association, the EU accounts for about 260 GW out of 860-950 GW in the world of hydropower. However, there is a question of expanding the possibility of hydrogenation. Countries such as Norway, Iceland, Sweden have used their hydropotential by 80-95%. The EU actively supports the development of hydropower in Europe through various programs and initiatives, such as, for example, "Hydropower on the Ground" (Hydropower on Places). At the same time, there is a potential in Europe to upgrade and modernize old hydroelectric power plants in order to improve their efficiency and reduce the negative impact on the environment. This includes installing new equipment, improving environmental performance and introducing new technologies. Most of the rivers in Europe are already used for electricity generation, and there is no way to expand production. But the sector of small hydropower plants is developing in the region. This makes it possible to use the potential of small watercourses, which contributes to the decentralization of the energy system and the development of local communities. Another topic of modernization of the energy balance was the production of hydrogen. The concept proposes to generate hydrogen by electrolysis of water (green hydrogen), based on nuclear power plants and hydroelectric power plants.

The formation of the modern agenda of sustainable development and decarbonization policy is mainly based on the assertion that anthropogenic factors are the main threat to the climate and ecology. Experts directly link the economic activity of mankind with the risks to the security of the planet.  Thus, a qualitatively new definition of energy consumption is formulated. If during the period of industrial revolutions the emergence of new types of energy in conditions of growing demand was characterized in this way, by the 21st century we were talking about a forced reduction in demand for resources. This was done by introducing restrictions on carbon dioxide emissions in conditions of an excess of hydrocarbon supply and, as a result, discrimination of the main players in the market.

The concepts of ESG – Environmental, Social and Governance (environmental, social and managerial standards for corporate and public management) appeared. The authorship of the ESG is attributed to former UN Secretary General Kofi Annan. Initially, his proposal was to introduce measures to combat climate change in large companies, and later became a sustainable development strategy.

ESG was widely introduced in Western business and public administration in the 2000s. In 2005, the United Nations recognized ESG factors as key aspects of sustainable development and began promoting their use. Today, ESG principles are widely used in investment activities, and many companies and funds invest only in projects that comply with these principles.

The ESG agenda was based on the use of renewable energy sources (VIA), commitment to reducing carbon dioxide emissions into the atmosphere and minimizing the greenhouse effect. However, the key issue remains the assessment of the carbon footprint. Which stages of the product production cycle should be included in the evaluation. From this we can conclude that ESG parameters are becoming a corporate tool for competition in the market.

On December 12, 2015, the participants of the Climate Summit in Paris signed a Climate Agreement. Currently, 194 countries have joined this agreement. The document declares the desire of the participants to significantly reduce greenhouse gas emissions and limit the temperature increase in this century to 2 degrees Celsius, while at the same time searching for means to further limit this increase to 1.5 degrees. The Agreement entered into force on November 4, 2016.  The document provides for the acceptance by all countries of commitments to reduce their emissions and the implementation of joint work on adaptation to the effects of climate change. The Agreement opens up an opportunity for developing countries to receive assistance from developed countries in order to mitigate the effects of climate change and adapt to them. In 2018, the delegates of the Climate Summit adopted a set of rules specifying the procedure for implementing the Paris Agreement. By 2050, to halve global emissions relative to the 1990 level, and by the end of the XXI century — to reduce to zero. Emissions of CO2 alone (the main greenhouse gas) in 2018 worldwide amounted to almost 33.9 billion tons. Most of all accounted for China (9.4 billion tons), the United States (5.1 billion tons), India (about 2.5 billion tons), Russia (about 1.6 billion tons) and Japan (more than 1.1 billion tons).

Environmental organizations began to play an important role in the formation of the "green agenda". Their arguments and actions are not always rational and are often dictated by political, lobbying interests.

A large-scale energy crisis began in Europe in 2020. It was caused by the EU's rejection of long gas supply contracts from Russia and the decision to buy gas on the stock exchange with reference to world prices. At the same time, the Asian market became a premium for gas and oil suppliers, where industrial production increased after the COVID-19 pandemic. The situation was aggravated by the fact that European RES could not compensate for the shortage of resources in a combination of a number of factors: there was windless weather and wind farms did not produce the required amount of electricity. In 2022, when the European Union launched a large-scale sanctions campaign against Russia for conducting its own in Ukraine, the supply of hydrocarbons practically stopped. Prices for households increased by 200-300%. In the context of the crisis, the authorities of the European Union decided to soften the requirements for clean energy. At the beginning of 2022, the European Commission adopted an Additional Delegated Act (CDA*), which determined that gas and atom are clean energy and meet the principles of sustainable development.

In response, ClientEarth, the European Political Bureau WWF* (recognized as an undesirable organization in Russia), the organization Transport & Environment (T&E) and the BUND (Association for the Protection of the Environment and Nature) launched a lawsuit in September 2022 to prevent the inclusion of nuclear energy and fossil gas in the Taxonomy of Sustainable Financing of the EU. They were not stopped by the arguments that nuclear power plants have zero CO2 emissions.

Environmentalists argued that the CDA contradicts other EU laws, in particular, with the Taxonomy Regulation itself and the European Climate Law. The German Green Party has achieved the country's complete rejection of its own nuclear energy. In April 2023, the authorities disconnected the last three operating nuclear power plants from the grid. At the same time, old coal mines with open-pit mining, which is considered the dirtiest and most harmful to the atmosphere, were reactivated in Germany. This step was made due to the acute shortage of energy for industry and households.

Against this background, Norway turned out to be the most resistant to energy shocks, where 98% of energy is generated by hydroelectric power plants.  The kingdom is also capable of exporting energy, which was expected by its European neighbors in the conditions of a conscious rejection of hydrocarbons. However, in the summer of 2022, Oslo announced that they plan to limit the sale of electricity for the sake of stability of domestic supplies. The Norwegian government explained this by an increase in domestic electricity prices and a decrease in the water level in reservoirs on which hydroelectric power plants are built. Such a move caused a storm of indignation in European political circles. Oslo was accused of abandoning the principles of eurosolidarity. From the pages of the British newspaper Financial Times, the executive director of the Finnish electric grid company Fingrid addressed Jukka Ruusunen: "This will be the first country in Europe to do this in the field of electricity. This would be a very dangerous and nationalistic step.  This is very selfish behavior." "In such situations, any measures taken at the national level are dangerous — they are contagious. People can say that if Norway can do it, then we can," Johannes Bruun, director of the electricity market at Danish Energinet, added to the indignation of his Finnish colleague ^[10].

In the agenda of decarbonization and climate protection, the attitude towards hydrogenation is undergoing changes. For a long time, hydroelectric power plants were unequivocally classified as producers of clean energy, since the stations do not emit direct greenhouse gases during operation. But as soon as the hydrological industry began to develop in the context of ESG, there were more requirements for environmental friendliness. Since mid–2020, almost 50 states have been participating in the new initiative of the IRENA agency, the Collaborative Framework on Hydropower, to promote coordinated actions for the development of hydropower and expand dialogue about its role in the transition to clean energy.

It was recognized that climate change also entails increased risks for the industry, which is working to reduce both the impact of climate change on hydropower generation and the potential impact of further development of hydropower on the global climate. In particular, the organization of artificial reservoirs for the operation of hydroelectric power plants become a powerful emitter of greenhouse gases, unlike natural ones. Global emissions of carbon dioxide (CO2)/year are about 301.3 Tg of carbon and 18.7 Tg of methane (CH4)/year. This significantly exceeds the data of recent observations. The sum of the lowering of the water level and downstream emissions, which are usually overlooked, is 42% CO2 and 67% CH4 of the total emissions from hydroelectric reservoirs. Accordingly, the global average emissions from hydropower are estimated at 92 g CO2/kWh and 5.7 g CH4/kWh. At the same time, global hydropower can currently reduce approximately 2,351 Tg of CO2eq/year compared to fossil fuel power plants. It is worth noting that the estimates are based on empirical relationships between emissions and potential factors, and do not provide an understanding of the main factors and ways of production and emissions of CH 4 from the reservoir ^[11].

The new results indicate a significant revision of carbon emissions from large reservoirs. For this purpose, the GHG Reservoir Tool (G-RES) was developed to help reservoir managers assess potential CH 4 emissions (Prairie et al., 2017). The G-RES tool includes a wide range of variables for estimating greenhouse gas emissions in reservoirs. Despite the fact that significant greenhouse gas emissions from HPP reservoirs are of great concern to the ecological community, significant carbon emitters – the water level drop zone and the reservoir downstream (including spillways and turbines, as well as river sections below dams) – were not included in the global carbon ^[12].

In some countries, the level of greenhouse gas emissions from hydrogenation is already being analyzed. In Russia, power engineers are obliged to do this at the request of the Ministry of Economic Development, which oversees the "greening" of the economy. Market participants considered the requirements excessive, but in the end the calculation is made on the fact that the results can be useful to confirm the environmental friendliness of products. Studies conducted by En+ at Bratskaya and Ust-Ilimskaya hydroelectric power plants in 2021 showed that the amount of greenhouse gas emissions strongly depends on the area of the reservoir. For the first station, the reservoir area of which exceeds 5.4 thousand square kilometers, the value was 8.37 g of CO2 equivalent per 1 kWh, for the second (1.9 thousand square kilometers) - 2.11 g, which is comparable to the indicators of HPPs in Canada and Norway ^[13].

Environmentalists, trying to formulate their attitude to hydrogeneration, also point out that the construction of hydroelectric power plants provokes a violation of the ecosystems of lakes and rivers. Flooding of large territories for the organization of reservoirs entails negative consequences for the flora and fauna of the region. At the same time, reservoirs provide regulation of river flows and protect territories from flooding. Natural and artificial reservoirs can serve as a regulator, allowing you to manage water resources and adapt to changes in precipitation and temperature. At the same time, environmental organizations, calling for all types of energy to leave only wind and solar, do not mention that the technological provision of this "clean" energy entails much greater harm. For the production of new RES, a multiple increase in the production of toxic rare earth metals is required, the issue of disposal of spent generators and other components of the infrastructure of new RES has not been resolved.

Hydroelectric power plants belong to one of the most profitable types of energy generation. According to the data of the Annual Report on the Development of Renewable Energy in the world in 2020, the normalized cost of electricity (Levelised Cost of Energy (LCOE)) produced at the HPP is $0.044 US dollars per kWh, at the SES – 0.057-0.108 US dollars per kWh, at the WPP – 0.041-0.084 US dollars per kWh. kWh ^[14]. In the context of global energy transition and increasing competition, this becomes a significant advantage for countries with significant hydropotential.

At the same time, the construction of the infrastructure of hydroelectric power plants is characterized by capital intensity and significant payback periods. The construction, operation and modernization of facilities create a burden on state budgets, especially in poor countries, and are not always of interest to investors. The stable development of the industry depends on political approaches, guarantees for the implementation of projects and the preservation of the market structure. This is due to the long terms of project implementation and high initial capital costs for projects.

The ESG factor, and then the Paris Climate Agreement, significantly changed the resource aspect of the development of hydrogenation. Portfolio investors and the stock market are increasingly introducing "green" provisions in the ESG criteria system. They compare and evaluate not only the productivity of the enterprise, but also the impact on the environment and society. In India, since 2013, there have been requirements for companies to disclose business responsibility reports. In 2015, China became the first state to establish criteria for green projects. One of the largest exchanges in the world — Shanghai, Shenzhen, Hong Kong and Bombay (with a total capitalization of more than $ 20 trillion) — they impose their own requirements in the field of ESG on companies, including generating ones.

One of the most urgent tasks of recent years is a multiple increase in investments in renewable energy sources. In order for the world to reach zero emissions by 2050, hydrogenation should grow by 3% per year in 2022-2030, according to the "Zero Emissions Scenario by 2050". The International Energy Agency notes the extremely low participation of public finances in the development of hydropower. Solar and wind generation have experienced a rapid rise over the past two decades thanks to the attention of governments, direct and indirect subsidies. These industries received tax benefits, and the states concluded long-term contracts with operators of wind and solar parks for the purchase of energy generated on them.

The following support measures can be extended to hydropower.

1. Capacity quotas.

2. Tax credits, subsidies and grants.

3. Priority connection to power supply networks and guaranteed purchase of electricity at favorable prices.

4. Provision of land plots for the construction of hydroelectric power plants.

5. Simplified procedures for obtaining permission to operate stations.

The scheme of support for the construction and operation of hydroelectric power plants, approved by the IEA (Source: IEA/IRENA Renewables Policies Database), is defined in the following parameters:

the support period is for ten years from the date of issuance of the permit for commissioning and production of hydroelectric power plants, for 8 months per year;

premium tariff in the amount of USD 0.015/kWh, paid as an addition to the wholesale price set for the corresponding hour. If the difference between the wholesale price and $0.055 USD is less than $0.015 USD, then the premium tariff will be calculated based on the specified difference.

One of the largest auction markets for renewable energy sources in the world has become India, which has taken a leading role from among the BRICS member countries in promoting energy efficiency and energy conservation to solve the global problem of climate change. The Government of India has taken a two-pronged approach to meeting the energy demand of its citizens, while ensuring a minimal increase in carbon dioxide emissions. In terms of energy production, the Government encourages the wider use of renewable energy sources in the energy mix. Efforts are also being made to use energy efficiently through various innovative policy measures within the framework of the Energy Conservation Act of 2001. The annual increase in renewable energy sources since 2017 has outpaced the increase in coal use, which has helped developers attract private investment ^[15].

Hydropower accounts for almost half of the total production of low-carbon electricity. According to the IEA, both in the basic and accelerated scenarios of the development of renewable energy, according to the available potential for expansion, solar generation is in the first place, followed by wind, and then hydrogenation. Thus, under the baseline scenario, the hydrogenation capacity will increase by 121 GW (or 9%) until 2024. Under the accelerated development scenario, the capacity will increase by 158 GW. Most of the increase in renewable energy generation will be accounted for by solar generation (almost 60% of the total expected volume of new inputs). The share of wind generation accounts for a quarter of the projected increase. At the same time, investments in hydropower help to create additional jobs and stimulate economic growth in the regions where projects are being implemented. This includes the construction and operation of hydropower facilities themselves, as well as the development of related industries, for example, energy-intensive industries or agriculture.

The report "Hydropower of Russia and foreign countries" notes that the construction of large hydroelectric power plants can create a significant long-term positive effect for the GDP of Russia and the GRP of the regions: the volume of investments in hydropower in the amount of 1% of GDP per year leads to a multiplier effect in the economy of 2.5–2.6% of GDP (for comparison, the average value of the multiplier for the energy industry is 2.2% of GDP). The maximum effect of the construction of the hydroelectric power station falls on the construction period ^[16].

The development of hydrogeneration requires international cooperation and coordination. The countries are working on the creation of joint initiatives and programs for the development of this industry. In June 2023, the OPEC Fund signed an agreement with the International Renewable Energy Agency (IRENA) to join the Energy Transition Accelerator Financing (ETAF) platform, a global initiative aimed at raising funds for investments in renewable energy. The OPEC Fund plans to support the platform with financing of up to $250 million USD by 2030 to finance renewable energy solutions in partner countries.

IRENA CEO Francesco La Camera and OPEC Foundation CEO Abdulhamid Alkhalifa signed an agreement in Vienna during the OPEC Foundation Development Forum. Director General La Camera said: "Accelerating the energy transition based on renewable energy sources is an imperative in the fight against climate change, as it allows us to simultaneously solve pressing energy problems and mitigate persistent social inequality. We are proud to announce the OPEC Fund's decision to join the IRENA ETAF Platform, which will significantly strengthen the Platform's role as an efficient and rapid mobilizer of capital for the most vulnerable economies." The Director General of the OPEC Fund stated: "This collaboration marks an important milestone in our joint efforts to address the twin challenges of climate change and energy poverty through this innovative platform. It will help promote an inclusive and equitable energy transition that will leave no one behind thanks to investments, new technologies and knowledge sharing."

Public investment alone will not be enough to ensure universal access to energy and solve the problem of climate change, according to the report "Increasing Private Financing of clean energy in Emerging and Developing Economies" published by the International Energy Agency and the International Finance Corporation. Annual investments in clean energy in emerging and developing economies should more than triple – from $770 billion in 2022 to $2.8 trillion by the early 2030s to meet growing energy needs and meet the climate goals set in the Paris Agreement, the report says^[17].

Francesco La Camera, Director General of the International Renewable Energy Agency (IRENA), said at the presentation of the book "Prospects for the Transition to World Energy (WETO) 2023" in June 2023: "We are faced with a harsh reality: we do not have time to fulfill the Paris Agreement. Our only way out is to follow the most promising, scientifically sound path that puts renewable energy sources at the center of solving the problem and leads countries to energy security, lower energy costs and promising industrial development. The energy transition should become a strategic tool for creating a more just and inclusive world."

The global hydropower industry is under serious pressure from several interrelated aspects, including the need to modernize old power plants, changing market structure, the impact on climate and sustainability of hydropower facilities, as well as water resources management. Reconstruction and modernization, including digitalization, of worn-out hydropower plants, especially in Europe and North America, increases the efficiency of their operation and maintenance, as well as resource planning and management. In turn, such efforts help the hydropower infrastructure to support renewable energy systems. Increasing demand requires not only technological decisions, but also the participation of all stakeholders in the energy value chain, both in the energy sector and in end-users (Power-to-X). Decision makers need to apply a systematic approach, combining innovations in technology and infrastructure with innovations in market design and regulation, planning and operation of systems, as well as business models ^[18].

In 2022, about 30 GW of hydroelectric power plants (large hydroelectric power plants and pumping and storage plants) will be put into operation in emerging market and developing economies. At the same time, the addition of hydropower and other low-emission dispatchable capacities is crucial to ensure reliable operation of the energy system, since solar and wind energy, leading in terms of investment, do not allow such a rapid response to the changing needs of the energy system.

The indirect role of the construction of reservoirs is important to solve the problems of water supply and irrigation. Thus, 11% of the world's hydroelectric power plants are located in areas with water scarcity. 26% of existing and 23% of projected dams and hydroelectric power plants are located in river basins, where the risk of water shortage varies from medium to high. The World Meteorological Organization has repeatedly insisted in its reports that daily and seasonal forecasts of precipitation and runoff increase electricity generation at the main dams of the Columbia River hydroelectric power plant in the United States by 5.5 TWh/year. This ensures an annual revenue growth of $150 million annually. The same benefit from using forecasts to manage hydro generation in Ethiopia is up to $6.5 billion. Such indirect investments in the energy sector can contribute to both adaptation to environmental processes and mitigation of the consequences of natural changes.

In order to form the investment attractiveness of HPP construction projects, it is important to note a number of parameters that make these investments promising.

1. The potential of hydropower. The high hydropower potential of a number of regions of North America, Latin America, Europe, Asia and Africa provides objective conditions for the growth of hydro generation.

2. Technology. The latest technologies, such as upgraded turbines, energy storage technologies and controlled systems, increase the efficiency of hydrogenation and contribute to its development.

3. Economic benefits. Hydropower stimulates labor markets. Contributes to the integrated development of the regions. In addition, the low cost of electricity generation and relatively low operating costs make hydropower attractive from an economic point of view.

4. Infrastructure development. The development of infrastructure for hydrogenation includes the construction of hydroelectric power plants, the construction of dams and canals, the installation of pipes, control dams and other elements necessary for the operation of these stations.

5. Government support. Support in the form of financial benefits, tax benefits and other measures helps to implement projects in the field of hydrogenation and stimulates the growth of this industry.

6. Long-term and durability. Hydroelectric power plants have a long service life, which makes their investments in energy infrastructure long-term sustainable. This helps to ensure a stable energy supply for many years.

Summarizing the above, it is advisable to conclude that hydrogenation plays a significant role in the transformation of international relations, contributing to the achievement of sustainable development goals, combating climate change and ensuring energy stability and economic development of many countries and regions of the world. Hydroelectric power plants allow states to increase their independence and mitigate the consequences of price shocks on energy resources. Large manufacturers are able to occupy significant niches in foreign markets, exporting capacities and thereby strengthening international cooperation.

In the conditions of modern energy transition, hydrogenation can be considered as an optimal solution to two interrelated problems: providing the possibility of improving living standards through economic development and reducing anthropogenic impact on the environment. The most important development of hydropower is seen for the countries of the Global South, which are in conditions of permanent energy shortage. The development of this direction of electric generation will create a long-term stable basis for economic and social development, real economic decolonization, smoothing out the global imbalances of inequality of opportunities. I would especially like to emphasize the multiplicative economic effect of hydropower projects both at the stage of construction and operation of facilities, as well as the investment attractiveness of hydropower as at the same time the cheapest, relatively predictable and environmentally friendly energy source that meets ESG certificates.

These factors indicate that the creation of new and improved technologies for the operation and management of functioning hydropower facilities can be considered as the most appropriate option for the fourth energy transition for both Russia and a number of other countries whose hydropower potential has not yet been fully utilized. Among them, it is necessary to mention the SCO member countries, including China, which accounts for more than 30% of the world's electricity generation from hydroelectric power plants, Russia – 5%, India – 3.8%, Pakistan – 0.6%, Iran – 0.3%, Kazakhstan – 0.2% and Uzbekistan – 0.1% ^[19].

In the context of modern transformations of international relations, the SCO claims to be an independent macro-regional bloc with sufficient potential for the development and implementation of energy projects, including hydropower, of global significance.

One of such projects, in our opinion, may be the formation of the Eurasian Electric Power System, in which Russia is called upon to play a leading role. The first stage of the creation of the Eurasian Electric Power System involves the unification of the energy systems of Russia, Belarus and Kazakhstan. At the second stage, the power systems of Mongolia and China can be connected. The third stage will allow other friendly Eurasian countries to be included in the Eurasian Electric Power System. During the implementation of the Eurasian Electric Power System project, it is also important to ensure the integration of the sectoral energy systems of friendly states, including hydropower.

The hydro-energy resources of Siberia and the Far East can be effectively involved in the integration of the energy systems of friendly Eurasian states.

In order to increase energy exports in the future, it is possible to use the still unused hydropower potential of Siberia, concentrated on the rivers of the Yenisei basin: Lower Tunguska, Angara and Vitim, as well as on the Mamakan River (Lena basin) and the Shilka River (Amur Basin). Of the projected hydropower facilities, Evenk (Turukhanskaya) is of particular interest in the future Hydroelectric power station, for the construction of which there are favorable conditions in the lower and middle reaches of the Lower Tunguska. The estimated capacity of the Evenki HPP ranges from 8,200 to 12,000 MW with an annual electricity generation of 47 billion kWh. The integration of the Evenki HPP is planned to be carried out via two 750 kV transmission lines with a total length of 3,600 km.

Among the hydropower resources of the Far East that are of interest for the integration of the energy systems of the friendly states of Eurasia, it is necessary to note the Uchur, Timpton, Aldan and Olekma rivers, on which the construction of a number of hydroelectric power plants forming the South Yakutsk Hydropower Complex (YYAGEK) is being planned. The estimated capacity of YUYAGEK is 5,000 MW, the annual electricity generation is 23,500 billion kWh. Of the functioning hydropower facilities, the Bureysky complex hydroelectric complex, which includes the Bureyskaya and Nizhne-Bureyskaya hydroelectric power plants, deserves special attention. The capacity of the Bureyskaya HPP, the largest in the Far East, is 2,010 MW, the average annual electricity generation is 7.1 billion kWh. Nizhne-Bureyskaya HPP (the only hybrid hydro–solar power plant in Russia) has an installed capacity of 320 MW; the design average annual output is 1.67 billion kWh ^[20].

In alliance with the friendly countries of Eurasia, Russia has sufficient opportunities to have a constructive impact on the nature and results of modern transformations of international relations, reducing the costs of inevitable military-political conflicts and aggravation of economic competition during the formation of a polycentric world order.