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In 2010 several hundred applications for new small hydropower stations have been reported across the whole Alpine area (with considerable difference of numbers between countries), thus potentially adding to the high number of facilities already in place. This boom has been triggered in particular by the financial incentives and support schemes in place in all countries of the Alps.  It presents a particular challenge for competent authorities in handling the huge amount of applications and deciding on authorisations for new facilities, due to variety of aspects to be taken into account (energy generation, CO₂ emission reduction, ecological impact etc.).

Despite its clear benefits, hydropower generation can also have substantial negative impacts on the aquatic ecology, natural scenery and ecosystems which are not always perceived by the wider public. This is not only the case for large dams, reservoirs and related hydropower facilities but also for small and very small hydropower stations, indeed the high number of such facilities already in place in the Alps, have a cumulative effect which is already impacting on a considerable number of river stretches

From the collected data on hydropower plants it is evident that the larger plants contribute by far the major share of total electricity production from HP , i.e. over 95% of the total production comes from facilities with greater than 1MW power output. Plants with a capacity of less than 1 MW constitute around 75% of all HP plants within the Alpine area but contribute less than 5% to the total electricity production.

The decision on new facilities is still mostly determined for sites individually (with exception that in some countries projects within National Parks, Nature2000-Sites, etc. are subjected to specific rules). Environmental legislation has developed significantly in recent decades. Residual water (or environmental minimum flows) as well as fish passes are now seen as basic provisions of new hydropower plants. However, many old facilities do not meet modern environmental standards. For instance, older hydropower facilities may not provide sufficient residual water or be equipped with fish-passes, hence causing a fragmentation of river stretches and habitats. In such cases, adaptations to the facilities may be required in order to meet environmental objectives.

When licences or authorisations have to be renewed, or when a new one is granted, the conditions for the water use are based on the current environmental legislation. Thus, if existing hydropower facilities request and need a renewal, extension or a new licence or authorisation then they have to comply and adjust to the new requirements of the actual environmental legislation, such as the residual water flow conditions.

However in some countries, once a water licence or authorisation has been granted, this legal right can only be varied during the set period of the licence or authorisation (between 30 to 90 years) if it is economically bearable for the owner or for reasons of higher public interests and against compensation. Furthermore, some water rights from the past do not have a license or authorisation period at all, i.e. the right is for an unlimited time period.

Due to the length of time for which a licence or authorisation is granted, the effectiveness of new regulations on upgrading existing facilities in order to enhance the ecological situation can be limited. In order to allow for progress, some countries have set up promotion schemes and incentives to support operators or licensees in upgrading existing facilities with the aim of fulfilling environmental objectives.