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    WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

    WORLD HINDU ECONOMIC FORUMSustainableHydropower:A Promising Business

    Mukand S. BabelWater Engineering and Management

    Asian Institute of Technology (AIT), Thailand

    10-11 August 2013

    (Enormous Opportunities of Business in Alternative Energy)

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    WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

    WORLD HINDU ECONOMIC FORUM

    Energy is essential for humanWell-beingHealth

    LivelihoodQuality of lifePoverty eradication

    DevelopmentEconomic

    SocialSustainable

    SecurityWater

    FoodEcosystemPeace

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    WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

    WORLD HINDU ECONOMIC FORUM

    Current and future energy consumption

    Source: US Energy Information Administration, 2011

    % of global energy use/demand

    Bharat China USA

    1990 1 8 21

    2015 5 22 18

    2030 6 26 17

    Per capita energy use/demand (M Btu)

    Bharat China USA

    6 26 321

    22 97 302

    29 143 280

    OECD 2011-2030 (0.3% per annum) (-0.2% per annum per capita)Non-OECD 2011-2030 (2.5% per annum) (1.5% per annum per capita)

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    WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

    WORLD HINDU ECONOMIC FORUM

    Electricity coverage

    Just 10 countries account for 2/3rd of those (1.5 billion) deprived of electricity 1.3 billion people will have no access to electricity in 2030 3.5 billion will face water scarcity by 2030

    Countries with the largest population

    without access to electricity, 2010

    Source: IEA, 2012

    Rural electrification

    Source: CEA, 2012

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    WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

    WORLD HINDU ECONOMIC FORUM

    Major energy sources for electricity generation

    Source: IPCC, 2012

    Wind, Ocean,Geothermal,Photovoltaics,Solar, Bioenergy

    2.5%

    By 2030, HPwill become the worlds dominant renewable energy source

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    WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

    WORLD HINDU ECONOMIC FORUM

    Why is hydropower an attractive option?

    Source: World Nuclear Association, 2012

    Clean Energy

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    WORLD HINDU ECONOMIC FORUM

    Why is hydropower an attractive option?

    Source: International Renewable Energy Association, 2012

    Inexpensive compared to other renewable energy sources

    0.0

    0.1

    0.2

    0.3

    0.4

    Onshore

    wind

    CSP Large solar

    PV

    Biomass Hydro

    small

    Hydro

    large

    LCO

    E,USD(2011)/kWh

    1.78 3.77 4.00 1.00 0.71Ratio comparedto small hydro

    1.00

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    WORLD HINDU ECONOMIC FORUM

    Why is hydropower an attractive option?

    Source: IHA, 2013

    Better efficiency compared to other energy sources

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    WORLD HINDU ECONOMIC FORUM

    Source: IPCC, 2012

    Source: IPCC, 2012

    Why is hydropower an attractive option?

    Good development potential

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    WORLD HINDU ECONOMIC FORUM

    Source: Central Electricity Authority, 2012

    Why is hydropower an attractive option?

    Region

    Good development potential - Bharat

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    WORLD HINDU ECONOMIC FORUM

    1-7 years

    5% project cost1-2 years

    15% project cost

    1-2 years

    70% project cost

    40+ years

    10% project cost

    Why is hydropower an attractive option?

    Long-term financial benefits

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    WORLD HINDU ECONOMIC FORUM

    Why is hydropower an attractive option?

    Clean and renewable

    High reliability, flexibility and efficiency High capacity factor Relatively inexpensive Long-term financial rewards

    Huge development potential Multiple-use benefits (flood control, water supply etc.) of

    hydropower Development at wide range of scales to meet diverse

    demands Rural and remote area coverage through small schemes

    Improved livelihoods and poverty eradication Agent for both mitigation and adaptation to climate

    change

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    Public-privatepartnership

    Sustainablehydropower

    WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

    WORLD HINDU ECONOMIC FORUM

    Major hurdles in the hydropower business

    Macro economicanalysis

    Complex administrativemechanisms

    Anti-dam lobby

    Environmentalproblems

    Commercial risks

    Public oppositionto privatization

    High construction risks

    Hydrological risks

    Lack of governance

    Energy price volatility

    Large up-front costs

    Social issues Rising cost of insurances

    Political turmoil

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    WORLD HINDU ECONOMIC FORUM

    SOCIAL

    Social impactassessment

    Community engagement

    and acceptance

    Multiple use benefits

    Public health

    Population displacement

    Vulnerable social groups

    Heritage

    Sustainable hydropower (SHP): Key considerations

    A SOCIAL

    B ECONOMIC

    C ENVIRONMENTAL

    A

    B

    C

    SUSTAINABILITY

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    WORLD HINDU ECONOMIC FORUM

    ECONOMIC Distribution and sharing of

    benefits

    Demonstrated need for project

    Cost-benefit and economic

    performance

    Longevity of benefits

    Energy system benefits

    Local capacity building

    Resource useA SOCIAL

    B ECONOMIC

    C ENVIRONMENTAL

    A

    B

    C

    SUSTAINABILITY

    Sustainable hydropower (SHP): Key considerations

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    WORLD HINDU ECONOMIC FORUM

    ENVIRONMENTAL Environmental assessment

    & monitoring Siting and design Construction impacts

    Erosion and sedimentation Seismic Water quality Passage of aquatic species

    Biodiversity & threatenedspecies Pest species Environmental flow

    A SOCIAL

    B ECONOMIC

    C ENVIRONMENTAL

    A

    B

    C

    SUSTAINABILITY

    Sustainable hydropower (SHP): Key considerations

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    WORLD HINDU ECONOMIC FORUM

    Investment costs and needs

    Investment cost highly variable site sensitive design choice scale of production

    Large-scale HPP: USD 1,000-3,500 per kW

    Small HPP slightly higher range band $ ONE trillion required to provide universal modern energy

    access by 2030

    Year Investment Multi-lateralorganizations Bilateralaid Domesticgovernments Privateinvestors

    2009 9.1 3.1 1.3 2.7 2.0

    2010-30 48.0 18.0 15.0 15.0

    Source: International Renewable Energy Agency, 2012

    Unit: USD Billion

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    WORLD HINDU ECONOMIC FORUM

    Final Reflections

    SHP is key to meeting future energy (and water)

    needs Proven technology; Small, medium and large HPP Risks traditionally associated with HP can be addressed Contributes to water and energy security

    Low-carbon economy and society Private investment essential; significant barriers

    must be overcome Enabling environment for investment

    Regulatory reforms Political and institutional issues, esp. in international

    basin Access to funding at local level for rural communities

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    WORLD HINDU ECONOMIC FORUM

    Improving energy and wateraccessand promoting renewable energy in thecontext of a climate-constrained world

    makes an investment in sustainablehydropowerattractive

    THANK [email protected]