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TRANSCRIPT
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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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Energy is essential for humanWell-beingHealth
LivelihoodQuality of lifePoverty eradication
DevelopmentEconomic
SocialSustainable
SecurityWater
FoodEcosystemPeace
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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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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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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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Why is hydropower an attractive option?
Source: World Nuclear Association, 2012
Clean Energy
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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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Why is hydropower an attractive option?
Source: IHA, 2013
Better efficiency compared to other energy sources
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Source: IPCC, 2012
Source: IPCC, 2012
Why is hydropower an attractive option?
Good development potential
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Source: Central Electricity Authority, 2012
Why is hydropower an attractive option?
Region
Good development potential - Bharat
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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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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
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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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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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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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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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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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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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Improving energy and wateraccessand promoting renewable energy in thecontext of a climate-constrained world
makes an investment in sustainablehydropowerattractive
THANK [email protected]