Benefits of hydropower
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Benefits of Hydropower: A Comprehensive Overview
Hydropower is a pivotal renewable energy source with numerous benefits spanning economic, environmental, and social dimensions. This article synthesizes the key advantages of hydropower development based on recent research findings.
Economic Benefits of Hydropower
Cost-Effective Energy Production
Hydropower is recognized for its cost-effectiveness in energy production. It provides a stable and inflation-free energy source due to the absence of fuel costs, making it a financially viable option for many regions7. Additionally, the development of hydropower projects can stimulate industrial growth and improve living standards by enhancing power supply and supporting agricultural activities7.
External Economic Benefits
Hydropower projects generate significant external economic benefits for surrounding and downstream areas. For instance, the Z hydropower project in China has shown that external benefits can increase from $18 million in 2006 to $114 million in 2065, with corresponding compensation standards rising from $4 million to $97 million over the same period1. This redistribution of benefits helps in compensating those adversely affected by hydropower development1.
Multipurpose Water Resource Schemes
Hydropower projects often form part of multipurpose water resource schemes, subsidizing other valuable functions such as irrigation and flood control. This integrated approach not only maximizes the utility of water resources but also enhances the overall economic benefits of the projects2 3.
Environmental Benefits of Hydropower
Renewable and Clean Energy Source
Hydropower is a clean and renewable energy source that significantly contributes to the reduction of greenhouse gas emissions. It prevents the emission of approximately 3 gigatons of CO2 annually, which is about 9% of global annual CO2 emissions9. This makes hydropower a crucial player in global efforts to mitigate climate change9.
Climate Change Mitigation and Adaptation
Hydropower projects are resilient to climate change impacts, providing a buffer against water resource variability. They contribute to climate change adaptation by ensuring a stable water supply and supporting flood regulation9. Moreover, hydropower production benefits more from a 1.5°C global warming scenario compared to a 2°C scenario, highlighting its role in climate resilience10.
Social Benefits of Hydropower
Poverty Reduction and Social Development
Hydropower development supports the Sustainable Development Goals (SDGs) by promoting cleaner energy transitions, poverty reduction, and climate resilience. In the transboundary Koshi river basin, hydropower projects have been shown to generate significant economic benefits, including increased agricultural production and flood damage control, which collectively help break the cycle of poverty and insecurity3.
Benefit Sharing and Community Empowerment
Effective benefit-sharing mechanisms are essential for the success of hydropower projects. By using models based on game theory and cost-benefit analysis, stakeholders can ensure fair distribution of benefits and risks, thereby reducing conflicts and promoting project success4. Additionally, collaborative governance frameworks can help balance the needs of local communities with the sustainability of hydropower businesses8.
Technical and Operational Benefits
Flexible and Reliable Energy Source
Hydropower has evolved from being a local, low-cost energy source to a strategic regional resource offering various ancillary services, including frequency control and energy storage for large interconnected power systems6. This flexibility makes hydropower an invaluable asset in integrating variable renewable energy sources like wind and solar power6.
Potential for Expansion
There is substantial potential for expanding hydropower capacity worldwide, particularly in developing countries where the need for clean and renewable energy is most urgent. Technically feasible hydropower potential is estimated at nearly 15,000 TWh/year, indicating significant opportunities for future development2 5.
Conclusion
Hydropower offers a multitude of benefits that make it a cornerstone of sustainable energy development. Its economic, environmental, and social advantages underscore its importance in the global energy mix, particularly in the context of climate change mitigation and adaptation. By leveraging these benefits, hydropower can play a critical role in achieving a cleaner, more resilient, and equitable energy future.
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Most relevant research papers on this topic
Internalization of External Benefits Brought by Hydropower Development
Internalizing external benefits from hydropower development can improve the benefit-sharing mechanism and redistribute these benefits more effectively.
Rigorous JournalHydropower potential and development activities
Hydropower has a substantial role to play in world energy supply, offering environmental and technical advantages, and its development as part of multipurpose water resources schemes can subsidize other valuable functions.
Highly CitedIntegrated modelling of the impacts of hydropower projects on the water-food-energy nexus in a transboundary Himalayan river basin
Hydropower projects in the Himalayan Koshi river basin can provide significant economic benefits, including increased agricultural production and flood damage control, while also reducing poverty and water, food, and energy insecurity.
Highly CitedBenefit Sharing in Hydropower Development: A Model Using Game Theory and Cost–Benefit Analysis
This study presents a benefit-sharing model using game theory and cost-benefit analysis to effectively distribute benefits and risks in hydropower development, reducing conflicts and ensuring project success.
Hydropower and the World's Energy Future
Hydropower offers technical, economic, and environmental benefits, making it a crucial contributor to the future global energy mix, particularly in developing countries.
Highly CitedThe changing role of hydropower: from cheap local energy supply to strategic regional resource
Hydropower has evolved from being a low-cost local energy source to a flexible regional resource offering ancillary services like frequency control and energy storage for large interconnected power systems.
A REVIEW ON HYDRO POWER PLANT
Small hydro power plants (SHP) are an economical and environmentally friendly way to boost power supply, improve living standards, and stimulate industrial growth while reducing distribution costs.
Literature ReviewGood living of communities and sustainability of the hydropower business: mapping an operational framework for benefit sharing
A benefit sharing scheme between hydropower companies and local communities can improve both the well-being of communities and the long-term sustainability of the energy business.
Systematic ReviewThe Role of Hydropower in Climate Change Mitigation and Adaptation: A Review
Hydropower contributes significantly to climate change mitigation and could play a key role in water resource availability adaptation, but careful attention is needed to mitigate environmental and social costs.
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