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A license is a document which grants special permission to a specified company to develop and run power stations and dams specified in the license, including conditions and rules of operation.
A license can also be defined as permission granted by the authorities to cause damage to the environment. However, those damage should be less important compared to the advantages of the project. The damage should not be larger than necessary, and may be mitigated at acceptable costs.Earlier licenses were similar to contracts between the authorities and the companies. The authorities could not change the conditions during the license period. The companies were bound by the conditions. This has now been gradually changed through legal regulations.