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and restoration. The payment is based on the benefits generated from more reliable stream flow for hydropower optimization and the avoided costs of reservoir dredging due to reduced siltation. In response to frequent severe flooding in the Magdalena River basin, the Government of Colombia has given central importance to an ecosystem-based approach to regulating planning and development to make sure that future economic activity in the river basin (which produces 86% of the country’s GDP) – especially hydropower and agriculture – is compatible with its water resources (Section 9.3.3). Sustainable dam management aims to design new and regulate existing structures with a view towards mitigating their impacts on natural ecosystems and society. The need for new dams can be reduced by retrofitting existing dams with power generation installations, and their operational efficiency can be enhanced by better integration of natural infrastructure in catchments. In the Rhine basin, the historical impact of extensive river modification is being partially mitigated by ‘re-naturalization’ efforts such as the restoration of spawning and juvenile habitats for salmon (ICPR, 2010). In the area of land management, conservation and remediation measures to avoid land degradation can lead to savings in water and energy consumption. Managing for multiple uses can reduce pressure on water resources by increasing water productivity; for example, when irrigation canals, downstream of a hydropower dam, are used for aquaculture or when household grey water from washing is reused on vegetable plots. 16.5 Power generation With the exception of evaporative losses, hydropower generation is essentially a non-consumptive use of water, though the abstraction, storage and return of water can Thermal power generation development involves the increasing potential for serious conflict between power, other water users and environmental considerations significantly impact other potential users (Sections 3.3.3, 6.2 and 9.2.1, as well as Chapters 10, 11, 13 and 14 for regional aspects). Multipurpose projects often include cross-subsidy from hydropower sales to irrigation and domestic consumption. In transboundary water management, the possibility of sharing power produced by multipurpose projects can be a common benefit that enables cooperation. As Africa has not yet tapped in to its rich potential for hydropower development to a substantial degree (Chapter 14), water and energy policy-makers there have the ability to learn from the positive as well as negative aspects of hydropower implementation practices that nations in Europe, North America and elsewhere have undergone and where some countries with rapidly emerging economies appear to be heading. It can do so by using the rich experience that has been developed over the years, including existing sustainability frameworks and best practices. However, hydropower development will not be easy. The IEA cautioned in its World Energy Outlook 2012: Several challenges threaten the development of hydropower in Africa, particularly the availability of funding. Political and market risks, as well as local environmental considerations are barriers to securing the large initial investments required. However, opportunities for funding are enhanced by several international programmes, including the Clean Development Mechanism under the Kyoto Protocol and a recent G20 initiative promoting investment in developing countries, which identified the Grand Inga project on the Congo River as a possible candidate for funding. Africa’s energy needs are huge: 590 million of its people [57%] still lack access to electricity. Hydropower, both large and small scale, is an abundant source of clean energy that can make a major contribution to providing energy for all (IEA, 2012a, p. 226). Other options for power generation present their own challenges. Thermal power generation development involves the increasing potential for serious conflict between power, other water users and environmental considerations. These trade-offs can sometimes be reduced by technological advances, but these may carry trade-offs of their own (Sections 3.3.1, 3.4, 5.1). Many new thermal power stations, especially in arid regions, incorporate cooling processes that minimize the abstraction of water. 114 CHAPTER 16 RESPONSES: FOSTERING SYNERGIES AND MANAGING TRADE-OFFSPDF Image | Water and Energy
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