KARACHI: The cost of hydropower generation is much higher than wind and solar as hydropower generation cost has exceeded Rs 50 per unit when taken into account the externalities (hidden cost), the findings of a study revealed here on Tuesday.
The study said that electricity generation from hydropower costs Rs 53.61 to produce a unit of electricity at Tarbela and Rs. 50.55 at Neelum-Jhelum by taking into account the true cost of hydropower in Pakistan.
Speakers talking about the financial and social implications of hydropower advocated for transition to renewable sources of energy rather than the construction of dams in the country as the developed world is now moving towards dismantling of big dams.
They were speaking at the launch of report 'True Cost of Hydropower ' based on the true cost of hydropower from Tarbela and Neelum Jhelum project, which are the key hydro power sources of Pakistan.
Pakistan Research Institute for Equitable Development (PRIED) and ZiZAK, a consultancy firm for knowledge products launched the report jointly. Experts Abrar Qazi, Dr Hassan Abbas, Badar Alam and others spoke on the hydropower projects and their huge financial cost in terms of adverse impacts on environment and people lives.
The report mentioned two case studies. The first case study is for Tarbela hydropower. Tarbela was built as multipurpose dam, while the second study is on Neelum-Jhelum Hydropower built as the run-of-the-river hydropower facility.
In case of Tarbela, report revealed that the major cost is accrued from one, carbon footprint of the reservoir lake and lost ecological services responsible for carbon sequestration; and two, from its share of silt trapping which results in erosion of the Indus Delta.
The prime function of Tarbela Dam was water storage and supply for irrigation and its supplementary function was power generation as 75 percent benefits of the dam will accrue from water supply and 25 percent from power generation. The case study on Tarbela; however, revealed that the facility has done more harm to water resources than good. The losses due to water have; however not been added to the cost of electricity. One can see; however, that the loss due to water is more than all other costs combined.
In the case of Neelum-Jhelum Hydropower, time/ cost overruns, and cost of financing and social costs are the biggest factors in raising the generation cost. Seismicity is the biggest risk and people are neither aware not informed about its dangers. The dam has already been designed to breach under certain conditions in way that major infrastructure will remain safe and the deluge of water will pass down the valley. But for the valley and its residents, there is neither insurance cover nor any emergency plan know to the public.
The report mentioned that the aim of the study had not been to evaluate dollar values with precision, but to highlight the ballpark costs involved in producing hydropower in Pakistan.
The cost estimates given in this study, therefore, are for general reference and can be improved with detailed study of each aspect covered here.
Moreover, the aspects covered in these estimates are not comprehensive. There could be more externalities which have not been touched upon. Further studies can help fine-tune the process as well as the estimates made here, it said.
Copyright Business Recorder, 2024
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