Influence of Hydroelectric Power Plants on Local Economic Development

Research leader

Research financier

Renewable Energy Ventures (REV) d.o.o. Beograd

a large factory building

RESEARCH TITLE

Research of the Economic, Socio-Demographic and Public Opinion Aspects of Constructing the Hydroelectric Power Plants of Brodarevo 1 and Brodarevo 2

RESEARCH FIELD

Economic science / interdisciplinary project

RESEARCH SUBJECT

Analysis of the impact of the construction of the two hydropower plants on the river Lim on the economic development of Prijepolje and its vicinity.

PROBLEM

Using water as an energy source, as one of the most plausible ways to get energy environmentally speaking, would be important for energy stabilisation of the country and the region, as well as for preservation of natural resources. However, building of these structures may have negative impact on the environment (activation of potential landslides, changes in microclimate, changes in physical and chemical characteristics of water, possibility of polluting the watercourses with oil and different chemicals from hydropower plants, etc.).
The main goal of the feasibility study of the erection of hydropower plants on the river Lim is to determine potential economic effects of the project on the Municipality of Prijepolje and its vicinity. This study is based on the data available at the time of its development. The conclusions were made based on the available literature, municipal documentation, research of the situation in the entire municipality of Prijepolje, as well as on interviews with the local community representatives.

RESEARCH

Considering the fact that the construction of the two hydropower plants would have a significant impact on the economic development of Prijepolje and its vicinity, the economic analysis concerned the changes in economic life that would unavoidably ensue after their putting into operation. The research focused on the following issues: a) changes in available agricultural capacities, considering that the construction of hydropower plants on the Lim River would result in losing some agricultural land due to flooding; b) increased employment due to new work positions being opened in the hydropower plants. Additionally, employability potential of the secondary activities necessary in the plants maintenance were also analysed, as well as potential increased employment in the tourist capacities that may be built on the water accumulations of the hydropower plants; c) impact of the hydropower plants’ operation on the budget of the local self-government; d) philanthropy as a positive effect of the plants’ construction on the increased standard in the community.

RESULT

The study titled “Research of the Economic, Socio-Demographic and Public Opinion Aspects of Constructing the Hydroelectric Power Plants of Brodarevo 1 and Brodarevo 2”. The Centre for Economic Research of the ISS was delegated realisation of the sub-project titled “Analysis of the Influence of the Construction of two Hydroelectric Power Plants on the Lim River on the Economic Development of Prijepole and its Vicinity”.

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