• Save
IHA 2013 World Congress: GDF Suez: Climate change: Four dimensions for hydropower
 

IHA 2013 World Congress: GDF Suez: Climate change: Four dimensions for hydropower

on

  • 655 views

Mr Phillip Hauser, Vice President Carbon Markets, GDF Suez Latin America ...

Mr Phillip Hauser, Vice President Carbon Markets, GDF Suez Latin America


Hydropower is influenced by climate change, but it can also contribute to alleviating the problem. Panellists will present and discuss four aspects of these relationships:

Science and uncertainty relating to the impact of climate change on hydrology;
Reviewing the relationship between hydropower and the natural greenhouse gas (GHG) emissions in the river basin;
Methods and incentives to use hydropower to offset GHG emissions from more carbon-intensive sources of energy; and
assessing the role of hydropower infrastructure in the face of increasing floods and drought.

For more information about this event, visit: http://ihacongress.org

Statistics

Views

Total Views
655
Views on SlideShare
340
Embed Views
315

Actions

Likes
0
Downloads
0
Comments
0

2 Embeds 315

http://ihacongress.org 314
http://translate.googleusercontent.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Mentio SRRENReportwhichcritizisesnonconventionalrenewables to beunsustainable as theydrainresurces for otherpriorities

IHA 2013 World Congress: GDF Suez: Climate change: Four dimensions for hydropower IHA 2013 World Congress: GDF Suez: Climate change: Four dimensions for hydropower Presentation Transcript

  • Mr Philipp HauserGDF Suez Latin AmericaHydropower’s role in climate change mitigationPresented at theIHA 2013 World Congress
  • Hydropower’s role inclimate change mitigationHow Carbon Markets can help to promotehydropower24 May 2013, KuchingPhilipp HauserVP Carbon MarketsGDF SUEZ Energy LatinAmerica
  • The uneven challenge to limit Climate Change to 2˚C Energy causes 66% of global GHGs & non-OECD account for 100% of growth; Non-OECD countries as they account for 90% of population and energydemand growth and require huge investments in capacity and mitigation; Many countries in Latam, Afrika and Asia have hydropower potential, butstruggle to develop it due to high up-front cost, risks and poor regulation; GHG intensive thermal expansion is still the baseline and leads to atechnological look in which is capable to close the door to 450 ppm.Source: IEA 2011 World Energy Outlook.
  •  OECD perspective: Mitigation requires gradualreform of infrastructure Mitigation cost to be containedby substituting depreciatedassets with new technologies Mitigation Potential isinsufficient when compared toemission grow of non OECDcountries OECD needs time for smoothtransition and asset rotation Non OECD needs immediateincentives for clean growthEnergy Security& unconstrainteconomic growthMinimumST-CostSocial &EnvironmentalCosts & BenefitsImportance of a global carbon marketPerspective and objectivesof emerging countries:
  • Energy Security& unconstrainteconomic growthMinimumLT - CostGlobal ClimateComplianceSocial &EnvironmentalCosts & BenefitsImportance of a global carbon market OECD perspective: Mitigation requires gradualreform of infrastructure Mitigation cost to be containedby substituting depreciatedassets with new technologies Mitigation Potential isinsufficient when compared toemission grow of non OECDcountries OECD needs time for smoothtransition and asset rotation Non OECD needs immediateincentives for clean growthCarbonMarkets
  • Clean Development Mechanism:prototype with need and opportunities for evolutionFinance sustainable development for developing countriesReduce cost of GHG mitigation for Annex I countries
  • Hydropower, sustainable development & barriersPoor regulatory environment, cost of financing, concerns about sustainabilityand lack of markets or support for project benefits are key barriers.Benefits of hydropowerHigh efficiency, flexibility and cost efficient energy storage technology [1].Energy payback up to 280 is best among all sources ( Solar & Wind <50) [1].High correlation between degree of HPP- & economic development [2]Proximities of HPPs often have higher HDI and better environmentalprotection than their respective regions (Brazil) [2].Hydropower is capable to generate socio-environmental benefitsof 0,4 to 1 US$ for each US$ invested [1].Most GHG efficient generation technology [1] and important for watermanagement and adaptation.[1] IPCC 2011 – SRREN [2] Brazilian Energy Ministry
  • Build on and combine existing & emerging policiesCDM→ ETMDBs&GCFNAMAMRVValue GHG Reduction Carbon Market Instruments(CMIs) are best suited to identify“least cost options” and assuretheir profitabilityA reformed CDM canplay this interim role asuniversal CMIProvide Funding in Leastand Less DC’s MDBs & GCF have capability tofinance clean growth & attractPrivate Sector CDM adds credibility andassures profitabilityMRV CDM offers wellestablished principlesfor MRV, bottom upbaseline setting andMethodologies for ER measurementUnparalelled DOE and PDcapability is (still) availableDomestic Efforts inadvanced DCs Advanced DC’s & privatesector finance NAMA policies Top down baseline & policiesare basis for sector wideprograms and activities
  • Hydropower as a result of CDM and NAMAsProject Project 7027 : Jirau HPPStatus Registered 26 Aug 12 (Date of registration action 16 May 13)Capacity 3.750 MWkCERsp.a.6.180IncentivePoliciesi) Priority project of national interest and priorityii) PPP with 60/40 between private & public sectoriii) Inflation adjusted PPA of 30 years as basis for projectfinance.iv) National development bank offers advantages whencompared to GHG intensive generation technologies:• Reduced Interest spread of 1.4%• Increased leverage and payback period.• CDM revenues as part of the financing to increaseleverage
  • EconomicsustainabilityMonetizedBenefitsMonetizedCostsHydropower: Valuing 6 dimensions of benefits Market valuation of benefits can finance sustainable climate resilient& GHG efficient water management and hydropower infrastructure. Institution building and international cooperation are key to overcomemarket barriers.0123EnergyStorageFlexibilityFloodControlIrrigationTransportMitigationRun-of River Storage Pump Storage