This project report provides non-Swedish readers with an overview of Sweden's attempts to reform the governance of its hydropower sector: the processes, the guidelines and recommendations. It also looks at some of the controversies and unresolved questions that have emerged, particularly around how to identify Heavily Modified Water Bodies (which are exempted from strict environmental standards) and how to manage the trade-off between societal and environmental goods.

The report is an output of the project Sustainable Governance of River Basins with Hydropower Production (SusWater) funded jointly by the Norwegian Research Council, Norwegian energy companies and the Norwegian Environment Agency. SusWater is a project of the Centre for Environmental Design of Renewable Energy (CEDREN).