Potential benefits of sharing water from the
Yali hydropower reservoir, Vietnam
Presentation for the 3rd Mekong Forum on
W...
Presentation contents
1. Study approach and methods
2. Contribution of different water sources to the
local economic activ...
1. Study Approach and Methods
• Objectives:


Provide useful information on economic benefits of the
alternative schemes ...
Study Area
• 2km buffer zone around Yali
reservoir, where Yali
hydropower plant operates
(since April 2002)
• 46 villages ...
The water issues...
• Water use issues:
– Single water use of Yali reservoir for hydropower
generation (reservoir exclusiv...
6
2. Contribution of different water sources
to the local economic activities
Table: % of Households Using Different Sources...
Water sources for agriculture activities
Crop type

Irrigation sources

Rice

Cassava

Coffee

Cinnamon

Rubber

1 = Reser...
Water sources for domestic and livestock use
Source of water
Drinking

Use of water for
Washing
Bathing Irrigation Livesto...
Contribution of water-dependent activities to
household income generation
Structure of income from economic activities
(% ...
3. Possible future water shortages

11
Surface water availability
near Yali reservoir
• Surface water stress
occurs during the dry
season
• Water demand is expec...
4. Trade-offs from using Yali reservoir
water for non-hydropower purposes
Comparing hydropower production under two
hydrol...
Comparison of hydropower production
between two scenarios
• Reservoir storage capacity in
the dry season is reduced by
3.6...
Water economic benefit valuation from hydropower
generation

For hydropower generation (m3/year)
Electricity Production of...
Water Economic valuation from non-hydropower activities
Sathay district
Economic benefit (thousand VND/m3 water)
From crop...
5. Conclusion
 Economic benefit /m3 of water for the local communities is
10 - 60 times higher than the sales value of el...
Thank you for your attention!

18
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Potential benefits of sharing water from the yali hydropower reservoir, vietnam

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3rd Mekong Forum on Water, Food & Energy 2013. Presentation from Session 7:

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  • The main sources of water to support the economic activities of the local communities are rainwater, groundwater (through public and private wells), and rivers and streams. Interestingly, all the sampled villages have established livelihood portfolio that appears to be relatively disconnected from the Yali reservoir and its drawdown area. Only a small fraction of the households in the villages adjacent to the reservoir use the drawdown area for farming.
  • These maps show current level of surface water availability for dry season and wet season in Kon Tum and Gia Lai provinces, based on rainfall, natural evaporation of moisture, and the current level of water consumption at district level. There is more than enough water to meet the current level of demand during wet season. However, there is widespread water shortage condition during dry season . These shortages are mostly met by pumping groundwater or developing surface water storage reservoirs for irrigation or domestic water uses.
  • These maps show current level of surface water availability in dry season around the Yali reservoir. Water availability goes into deficit during the dry season. Critical water stress occurs within Sa Thay and Kon Tum districts as highlighted in red and orange colors.
    Water availability would be critical for agriculture and domestic use of communities living in this area in the dry season. Small contribution of water from the reservoir could relive this water stress.
    What would be the impact on power production if water from the reservoir could be used for agriculture and domestic use? Hydrological model was set up to analyse the impact.
  • Looking at average active storage capacity and total power production annually, in the dry and wet season.
    The graph shows the difference results of scenario 2 compare with baseline
  • Potential benefits of sharing water from the yali hydropower reservoir, vietnam

    1. 1. Potential benefits of sharing water from the Yali hydropower reservoir, Vietnam Presentation for the 3rd Mekong Forum on Water, Food and Energy 19-21 November, 2013, Hanoi, Vietnam Vũ Xuân Nguyệt Hồng, CIEM – MK2 Team leader for Vietnam Nguyễn Việt Anh, ICEM – MK2 Vietnam Team Member Yumiko Kura, WorldFish – MK2 Project Leader 1
    2. 2. Presentation contents 1. Study approach and methods 2. Contribution of different water sources to the local economic activities 3. Possible future water shortages 4. Trade-offs from using Yali reservoir water for non-hydropower purposes 5. Conclusion 2
    3. 3. 1. Study Approach and Methods • Objectives:  Provide useful information on economic benefits of the alternative schemes of water use in Yali reservoir for coordination of water management strategies in two central highland provinces of VN. • Methodology: • Use direct use method to analyze water value for local communities based on household survey of 350 households in the reservoir’s buffer zone • Water demand estimates based on socioeconomic development plans at district and provincial levels • Analysis of water availability and allocation trade-offs using hydrological models 3
    4. 4. Study Area • 2km buffer zone around Yali reservoir, where Yali hydropower plant operates (since April 2002) • 46 villages surrounding the reservoir which are parts of Chư pah district in Gia Lai province, and Sa thầy district and Kontum city in Kontum province. • This covers a land area of 355,5 km2 with 33.3 thousands residents 4
    5. 5. The water issues... • Water use issues: – Single water use of Yali reservoir for hydropower generation (reservoir exclusively managed by a state hydropower company -EVN); – Limited water access to reservoir by local households whose livelihoods much depend on water (irrigation, fishing, aquaculture, washing, cooking etc.) ; – Multiple use of water is not clearly addressed in local authority’s water planning and allocation (both crosssector and trans-boundary) – Lack coordination between the two provincial authorities, and the hydropower plant on water use allocation (upstream and downstream of Yali reservoir). 5
    6. 6. 6
    7. 7. 2. Contribution of different water sources to the local economic activities Table: % of Households Using Different Sources of Water For Drinking Bathing Washing Irrigation Fishing Livestock watering Transportation River/Stream 10 9 9 36 0 8 - Rain Water /Springs 1 6 6 30 0 - Tap Water 6 5 5 6 0 - Wells 80 78 76 22 50 - Yali Reservoir 0 1 0 4 9 0 0 • Public and private wells are the most importance source of water for domestic uses and livestock • Rain water and small rivers /streams are the main water source for agriculture • Use of Yali reservoir water is limited to some fishing and irrigation activities; But • 91% of the households who are involved in fishing consider Yali reservoir important for fishing 7
    8. 8. Water sources for agriculture activities Crop type Irrigation sources Rice Cassava Coffee Cinnamon Rubber 1 = Reservoir no no no no no 2 = Irrigation canal no no X no no 3 = Stream XX no XX no no 4 = Rain Water XX XXX no XXX XXX 5 = Dug well no no XX No no 6 = Drilled well no no no no no 7 = River no no no no no 8 = Mountain water drop XX no no no no 9= Others no no No no no Crop type Irrigation method Rice Cassava Coffee Cinnamon Rubber 1= Canal irrigation X no no No no 2=Flood irrigation XX no no no no 3= Motor pumping no no XXX no no 4 = Drawdown agriculture no no no X XXX 5= Manual watering no no No no no 6= Rain water XX XXX no XXX no Note: X farly important; XX important; XXX very important 8
    9. 9. Water sources for domestic and livestock use Source of water Drinking Use of water for Washing Bathing Irrigation Livestock clothes cleaning River no no no no no Stream/Creek X X X XX X Rain Water Barrel no no no no X Mountain water drop no no X X X Tap – public no no no no no Openned well XX XX XX no no Drilled well XX XX XX XX XX Other no no no X no Note: X farly important; XX important; XXX very important 9
    10. 10. Contribution of water-dependent activities to household income generation Structure of income from economic activities (% of total revenue of household from economic activities) Whole sample Chupah Sathay Economic activity 1000 VND Structure % 1000 VND Structure % 1000 VND Structure % 1. Agriculture Of which, Farm Livestock Fishery Forestry 2. Non-agriculture 3. Total 48246.4 79.2% 52841.5 78.1% 43690.5 79.8% 42904.0 2999.4 795.7 1635.6 12730.4 61,204 70.1% 4.8% 1.3% 3.0% 20.8% 100% 46684.8 3924.1 2165.0 67.7 14817.3 67,659 69.0% 5.8% 3.2% 0.1% 21.9% 100% 38708.2 2299.6 109.5 2573.2 11059.5 54,750 70.7% 4.2% 0.2% 4.7% 20.2% 100% 10
    11. 11. 3. Possible future water shortages 11
    12. 12. Surface water availability near Yali reservoir • Surface water stress occurs during the dry season • Water demand is expected to increase in future • Water from the reservoir may be helpful in a severe drought and water shortage year • What would be the impact on hydropower production if the local communities are allowed to use reservoir water?
    13. 13. 4. Trade-offs from using Yali reservoir water for non-hydropower purposes Comparing hydropower production under two hydrological scenarios: •Scenario 1 (Baseline): Yali reservoir is managed exclusively for hydropower production •Scenario 2: Reservoir water is used to meet 100% of the total water demand within a 2km buffer zone around the reservoir (annual water demand is 81.3 million m3) 13
    14. 14. Comparison of hydropower production between two scenarios • Reservoir storage capacity in the dry season is reduced by 3.6% on average (493m3 daily) • Power production in the dry season is reduced by 3.5% on average (3,194kWh) • Total annual reduction in power production is 34.6 GWh or 9.6 billion VND, approximately $450,000 • 83% of the loss occurs during dry season but dry season production is only 22% of the yearly production
    15. 15. Water economic benefit valuation from hydropower generation For hydropower generation (m3/year) Electricity Production of Yali (million KWh) Price sold to EVN (VND/KWh) Production output value from hydropower generation (million VND) Water economic benefit from hydropower generation (VND/m3) 2,394,049,315 3680 280 1030400 430.40 15
    16. 16. Water Economic valuation from non-hydropower activities Sathay district Economic benefit (thousand VND/m3 water) From crops farming From aquaculture From domestic use From lifestock Economic benefit (USD/m3 water) From crops farming From aquaculture From domestic use From lifestock 4.864 4.376 11.592 8.283 6.828 0.243 0.219 0.580 0.414 0.341 Chu Pah district Kon Tum town 4.987 4.456 18.825 8.283 8.431 0.249 0.223 0.941 0.414 0.422 10.050 9.950 19.051 8.283 27.294 0.503 0.498 0.953 0.414 1.365 Total 6.061 5.519 15.627 8.283 10.014 0.303 0.276 0.781 0.414 0.501 Note: 1USD = 20,000 VND; Comparison of water economic value estimates Highland Vietnam Asia World From agriculture From domestic use 0.276 0.414 0.219 0.303 0.319 0.59 Source: - Figures for Vietnam were from the table above; - Figures for Asia and the World were from “Economic value of water for “Agriculture, domestic and industrial use: A global compilation of economic studies and market prices”. By Ecosystem Economics LLC, USA. in May 2010 16
    17. 17. 5. Conclusion  Economic benefit /m3 of water for the local communities is 10 - 60 times higher than the sales value of electricity /m3 to the hydropower company  Even if 100% of water demand of the local communities within 2km of the Yali reservoir is supplied by the reservoir, the reduction in the electricity production would be relatively small  Increased access to the water resources in Yali reservoir can potentially create high economic benefit to the local communities, especially in drought or water shortage conditions  More research is needed on technical and institutional feasibility of using the Yali reservoir for non-hydropower uses 17
    18. 18. Thank you for your attention! 18

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