Hydro Division

Environmental and social effects of hydropower projects need to be carefully considered. Countries should follow an integrated approach in managing their water resources, planning hydropower development in co-operation with other water-using sectors, and take a full life-cycle approach to the assessment of the benefits and impacts of projects.

Hydropower is one of few carbon-free energy sources capable of large scale & low cost generation and  large potential of GHG reduction

Construction cost: 2,500 $/kW, operation rate 50%, payout period 50 years If all of the “technically exploitable capability” is exploited, CO2 reduction will be :

Electricity price: 3.1 cents/kWh or 5.8 cents/kWh

If CO2 reduction unit is 0.5kg-CO2/kWh and carbon credit is $5/t-CO2, additional income will be 0.25 cent/kWh

Technically exploitable capability 11,570 TWh  × emission factor 0.5 t-CO2/MWh = 5.79 billion t-CO2(25% of world’s CO2emission)

Result: Reduction effect: 4 ~8 % of electricity price

Source: New Energy Foundation ( NEF)

Carbon finance may become important for hydro-power development.

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