Hydropo wer-Econo mic Aspects of Sustainability
There can be no sustainable develop ment without the demonstration of sound and equitable distribution of econo mic benefits.For this reason econo mic considerations are a central plank in the decision-making processes associated with hydropower projects.The efficient use of econo mic resources requires t hat t he best options are selected,t hat alter natives have been caref ully evaluated,and that there are no hidden and unforeseen costs that coul d e mer ge in t he f ut ure.This is t he basis f or sound econo mic practice.
All significant hydro costs come at the construction stage.Once constr ucted,a hydro project is virtuall y i mmune fr o m f urt her inflationary pressures and has a ver y long economic life.Older hydropower stations are often rehabilitated or upgraded,but are sel do m deco mmissioned.Hydr opower pr ojects also have favourable ener gy payback periods(the amount of energy derived fro mthe generating station compared with that put into its constr uction and operation).In addition t hey play a pivotal r ole in integrated energy systems due to their flexibility and reliability.Ener gy storage associated with hydr o schemes is increasingl y being seen as a mechanis m by which ot her less reliable and more dilute renewable energy sources(such as wind,wave and solar)can play a larger role in pr oviding electrical power of co mmercial quality.This high level of ser vice pr ovided by hydropower combined with its multi-pur pose character are driving forces f or regional develop ment.For t hese reasons,hydropower pr ojects can be considered as a tool f or economic develop ment.(https://www.daowen.com)
Gover n ments need to ensure t hat t he longer-ter m and less direct benefits of hydropower projects are not overlooked in the planning process or penalized by short-ter m financing or tax regi me requirements.Wit h new develop ments,capital and operating costs should be taken into account over the lifeti me of a project with a life-cycle assess ment of project alter natives for ming an integral component of assessment processes.Direct and indirect costs and benefits shoul d be identified,and where possible quantified in monetar y ter ms.The key principles are as f ollows and require a clear understanding of gover n ment and devel oper responsibilities.