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Regional Leadership Forum
advancing sustainable hydropower in latin america and the caribbean
        IDB / IHA / Odebrecht Energia / GIZ

  Theme 2: Challenges of hydropower development

            How Important is Water Storage
       for Hydropower, Sustainable Development
               and Poverty Eradication?

Francisco L. S. Gomide                             November 2012
INTRODUCTION ............................................................................. 2
                    NATURAL LAKES AND MAN MADE RESERVOIRS .............................. 3
                    THE IRRATIONAL OPPOSITION ........................................................ 4
                    THE ESSENTIAL INFRASTRUCTURE .................................................. 5
                    THE WATER (AND HYDROPOWER) CONTINENT............................... 6
                    THE STORAGE YIELD RELATIONSHIP ............................................... 7
                    CLOSURE........................................................................................ 8
                    REFERENCES .................................................................................. 9



Gomide,F.2012,   available at               http://www.globalwaterforum.org

                                                                                                                 1
Introduction:           What is the problem?
In the last thirty to forty years, alarmist groups and organizations
have been exaggeratedly stating that infrastructure works, in
general, and dams and reservoirs, in particular, cause serious and
intolerable environmental impacts.

Specific organizations have succeeded in coercing multilateral credit
institutions – such as the World Bank – to drastically reduce support
for the construction of hydroelectric plants: the starting point of a
process aiming at the criminalization of reservoirs.

Hydroelectricity would not be “clean” and could not be considered
renewable, because of the reservoir. In consequence, reservoirs
would not be acceptable for any other purpose (water supply, water
regulation, flood control, irrigation, navigation, etc.]

                                                                        2
Natural lakes and man made reservoirs
There are more than 75,000 dams in USA, with age over 50 years, on
the average. There is no evidence supporting the assertion that
building them was a mistake. The benefits of their reservoir operation
largely offset eventual environmental impacts.
                                                          Earth         USA
        Natural surface freshwater            Total    104 620 km3


                                              Lakes    90 990 km3    19 000 km3   Mother Nature’s wisdom?
                                             Swamps    11 510 km3
                                             Rivers     2 120 km3


 Freshwater storage in man made reservoirs   (Lakes)    6 620 km3     810 km3         Ecologic error?


The idea behind man-made reservoirs is to offer the very same
ecological services provided by natural lakes (water regulation, water
supply and flood control) … and hydroelectric power, improved
navigation and expanded recreation opportunities.
The Irrational Opposition to Reservoirs *
 How can anyone justify the opposition to the ecological service of
  water regulation?

 And the opposition to the service of water supply?

 How can anyone waive the protection provided by reservoirs in flood
  routing?

 How can anyone criticize man-made reservoirs without regretting the
  existence of natural lakes?

 How can anyone favor the substitution of renewable energy (such as
  hydroelectricity) by thermal electricity (from fossil fuel combustion)?

 How can anyone pretend there are more risks in hydroelectric projects
  than in thermonuclear electric plants?

* (To the adjustment to a new ecological environment? To relocation?)
The essential infrastructure
Unfortunately, the mistaken opposition to dams and reservoirs was so efficient in
forcing, coercing and influencing people and organizations that aid agencies and
other institutions discreetly steered away from investments in infrastructure.


Rich countries are living off the convenient services provided by infrastructure
developed in the 20th century, which is aging. At the same time, pointing to poor
countries, this rich countries agenda advocates a path to development that no one
has taken before (Briscoe, 2011).


The end result of the irrational opposition to dams, reservoirs and other
infrastructure works is that the 20th century was closed with

                  850 million people without adequate access to water,
                  1.6 billion people without access to electricity and
                  2.9 billion people living on less than 2 dollars a day.


                                                                                    5
South America, the Water-Continent
                              Mean annual precipitation (milimeters per year)
All Continents       Africa     Asia       North Am    Europe        Austr&Oc       South Am       Brazil       Amazon

 800 mm               740       740           756          790          791          1600           1800         2400


                                       Mean annual run off (km3 per year)

        All Continents        South America                                     Brazil                  USA

            47.000               12.200                                       5.667                   1.787

The Brazilian electricity sector is - and hopefully will continue to be – basically hydraulic. Thanks to
hydroelectricity the Brazilian energy mix is one of the cleanest and most carbon- free in the world. Most
of the Brazilian freshwater storage in man-made reservoirs (653 km3 out of 724 km3) has been
provided by electricity generation companies. Their total surface area is 37.000 km2, less than the
average size of the 11 largest natural lakes, of 44.800 km2.
                              Freshwater storage in man-         Mean annual run off           Days of mean discharge
                                   made reservoirs
            USA                          810 km3                   1.787 km3 / yr                    165 days
           Brazil                        724 km3                   5.667 km3 / yr                     47 days
     Brazil without BES       71 km3 =724 km3 -653 km3             5.667 km3 / yr                      5 days
                                                                                                                    6
The Storage Yield Relationship
<<<predatory design              diminishing marginal returns>>>




                                                               7
Strategic choices : large flexibility

Basically, one is looking for the probability distribution of the so-
called maximum accumulated deficit:

  V = min(for 1<j<k<n) [– X (j) – X(j+1) –X(j+2) … – X (k-2) – X(k-1) – X(k) ]

  where          { X(t); t=1,2,…,n}         is a sequence of net inputs.


            Strategic choice of size: any combination
             of v(i) such that ∑v(i)=V

            Strategic choice of location: wherever
             the adequate dam site is…

                                                                          8
Moving upstream: the search for the adequate dam site




                           Source:   SUDERHSA, 2000
                                                      9
Closure
 There can be no poverty reduction without access to water and
  electricity. There can be no access to water and electricity without
  investments in infrastructure. Reservoirs are not only useful. They
  are indispensable.

 Every human intervention on Nature has environmental impact.
  Hydroelectricity is favorably compared with most other generation
  alternatives. And it is renewable.
 The concentration of reservoirs in the upper portion of the
  hydrographic basins, as a consequence of the search for more
  adequate dam sites, is consistent with the probabilistic design of
  the storage requirements and with the environmental protection of
  the watersheds.

                                                                   10
Propositions
  Sustainable development implies in the optimum conversion of the
     resources of nature to benefit today and future generations.

  There is no conflict between the fortunately predominant advanced
level of global environmental awareness and the timely convenience of
    the effective development of the Brazilian extraordinary water
                               resources.



       Thank you for your attention
                                Francisco Luiz Sibut Gomide
       Civil Engineer, Economist, Ph.D. (Hydrology and Water Resources), former Minister of Energy (2002),
      CEO of Escelsa and Enersul (1995-2001), Brazilian General Director of Itaipu Binacional (1993-1995),
      CEO and President of Copel (1986-1993), Director (Administration and Finance) of Copel (1983-1986),
     President (1985-1987) and Director (1977-1979) Brazilian Hydrology and Water Resources Association
                and Full Professor of Water Resources Engineering at Federal University of Paraná
                                                                                                             11

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Francisco Gomide

  • 1. Regional Leadership Forum advancing sustainable hydropower in latin america and the caribbean IDB / IHA / Odebrecht Energia / GIZ Theme 2: Challenges of hydropower development How Important is Water Storage for Hydropower, Sustainable Development and Poverty Eradication? Francisco L. S. Gomide November 2012
  • 2. INTRODUCTION ............................................................................. 2 NATURAL LAKES AND MAN MADE RESERVOIRS .............................. 3 THE IRRATIONAL OPPOSITION ........................................................ 4 THE ESSENTIAL INFRASTRUCTURE .................................................. 5 THE WATER (AND HYDROPOWER) CONTINENT............................... 6 THE STORAGE YIELD RELATIONSHIP ............................................... 7 CLOSURE........................................................................................ 8 REFERENCES .................................................................................. 9 Gomide,F.2012, available at http://www.globalwaterforum.org 1
  • 3. Introduction: What is the problem? In the last thirty to forty years, alarmist groups and organizations have been exaggeratedly stating that infrastructure works, in general, and dams and reservoirs, in particular, cause serious and intolerable environmental impacts. Specific organizations have succeeded in coercing multilateral credit institutions – such as the World Bank – to drastically reduce support for the construction of hydroelectric plants: the starting point of a process aiming at the criminalization of reservoirs. Hydroelectricity would not be “clean” and could not be considered renewable, because of the reservoir. In consequence, reservoirs would not be acceptable for any other purpose (water supply, water regulation, flood control, irrigation, navigation, etc.] 2
  • 4. Natural lakes and man made reservoirs There are more than 75,000 dams in USA, with age over 50 years, on the average. There is no evidence supporting the assertion that building them was a mistake. The benefits of their reservoir operation largely offset eventual environmental impacts. Earth USA Natural surface freshwater Total 104 620 km3 Lakes 90 990 km3 19 000 km3 Mother Nature’s wisdom? Swamps 11 510 km3 Rivers 2 120 km3 Freshwater storage in man made reservoirs (Lakes) 6 620 km3 810 km3 Ecologic error? The idea behind man-made reservoirs is to offer the very same ecological services provided by natural lakes (water regulation, water supply and flood control) … and hydroelectric power, improved navigation and expanded recreation opportunities.
  • 5. The Irrational Opposition to Reservoirs *  How can anyone justify the opposition to the ecological service of water regulation?  And the opposition to the service of water supply?  How can anyone waive the protection provided by reservoirs in flood routing?  How can anyone criticize man-made reservoirs without regretting the existence of natural lakes?  How can anyone favor the substitution of renewable energy (such as hydroelectricity) by thermal electricity (from fossil fuel combustion)?  How can anyone pretend there are more risks in hydroelectric projects than in thermonuclear electric plants? * (To the adjustment to a new ecological environment? To relocation?)
  • 6. The essential infrastructure Unfortunately, the mistaken opposition to dams and reservoirs was so efficient in forcing, coercing and influencing people and organizations that aid agencies and other institutions discreetly steered away from investments in infrastructure. Rich countries are living off the convenient services provided by infrastructure developed in the 20th century, which is aging. At the same time, pointing to poor countries, this rich countries agenda advocates a path to development that no one has taken before (Briscoe, 2011). The end result of the irrational opposition to dams, reservoirs and other infrastructure works is that the 20th century was closed with  850 million people without adequate access to water,  1.6 billion people without access to electricity and  2.9 billion people living on less than 2 dollars a day. 5
  • 7. South America, the Water-Continent Mean annual precipitation (milimeters per year) All Continents Africa Asia North Am Europe Austr&Oc South Am Brazil Amazon 800 mm 740 740 756 790 791 1600 1800 2400 Mean annual run off (km3 per year) All Continents South America Brazil USA 47.000 12.200 5.667 1.787 The Brazilian electricity sector is - and hopefully will continue to be – basically hydraulic. Thanks to hydroelectricity the Brazilian energy mix is one of the cleanest and most carbon- free in the world. Most of the Brazilian freshwater storage in man-made reservoirs (653 km3 out of 724 km3) has been provided by electricity generation companies. Their total surface area is 37.000 km2, less than the average size of the 11 largest natural lakes, of 44.800 km2. Freshwater storage in man- Mean annual run off Days of mean discharge made reservoirs USA 810 km3 1.787 km3 / yr 165 days Brazil 724 km3 5.667 km3 / yr 47 days Brazil without BES 71 km3 =724 km3 -653 km3 5.667 km3 / yr 5 days 6
  • 8. The Storage Yield Relationship <<<predatory design diminishing marginal returns>>> 7
  • 9. Strategic choices : large flexibility Basically, one is looking for the probability distribution of the so- called maximum accumulated deficit: V = min(for 1<j<k<n) [– X (j) – X(j+1) –X(j+2) … – X (k-2) – X(k-1) – X(k) ] where { X(t); t=1,2,…,n} is a sequence of net inputs.  Strategic choice of size: any combination of v(i) such that ∑v(i)=V  Strategic choice of location: wherever the adequate dam site is… 8
  • 10. Moving upstream: the search for the adequate dam site Source: SUDERHSA, 2000 9
  • 11. Closure  There can be no poverty reduction without access to water and electricity. There can be no access to water and electricity without investments in infrastructure. Reservoirs are not only useful. They are indispensable.  Every human intervention on Nature has environmental impact. Hydroelectricity is favorably compared with most other generation alternatives. And it is renewable.  The concentration of reservoirs in the upper portion of the hydrographic basins, as a consequence of the search for more adequate dam sites, is consistent with the probabilistic design of the storage requirements and with the environmental protection of the watersheds. 10
  • 12. Propositions Sustainable development implies in the optimum conversion of the resources of nature to benefit today and future generations. There is no conflict between the fortunately predominant advanced level of global environmental awareness and the timely convenience of the effective development of the Brazilian extraordinary water resources. Thank you for your attention Francisco Luiz Sibut Gomide Civil Engineer, Economist, Ph.D. (Hydrology and Water Resources), former Minister of Energy (2002), CEO of Escelsa and Enersul (1995-2001), Brazilian General Director of Itaipu Binacional (1993-1995), CEO and President of Copel (1986-1993), Director (Administration and Finance) of Copel (1983-1986), President (1985-1987) and Director (1977-1979) Brazilian Hydrology and Water Resources Association and Full Professor of Water Resources Engineering at Federal University of Paraná 11