A Cost-Benefit Analysis of Bakhtiari Hydropower Dam Considering the Nexus between Energy and Water

Sanaz Tajziehchi,Gholamreza Nabi,Abdolreza Karbassi,Pouya Ifaei,Changkyoo Yoo

doi:10.3390/en15030871

Abstract

Hydropower stations have supplied most of the green electricity in various parts of the world. Nonetheless, the economic profit of hydro-electricity lies beyond its social costs in many cases. Despite the short-term economic benefits of large dams, their sustainable pros and cons are doubted. This study aims to investigate the long-term profitability of large hydropower stations by considering the nexus between the environmental, economic, and social aspects. Much progress has been made in simplifying feasibility studies of hydropower stations by developing comprehensive software and models according to the United Nations Sustainable development goals. Developed by International Atomic Energy Agency (IAEA), the SimPacts has become one of the most frequently-used simple models to estimate the external costs of electricity generation since 2003. Hydropower’s Environmental Costs Analysis Model (HECAM) is a popular user-friendly version of the model that includes more details for benefits estimation. In the present investigation, sedimentation and evaporation effects of constructing hydropower dams are added to previous cost estimation factors to upgrade the HECAM model to HECAM II. Bakhtiari hydropower dam (located in Lorestan province in Iran) is employed as a case study to verify the new model. The results showed that the total cost and revenue, as well as the benefit to cost ratio, were 79.13 US$/MWh, 203 US$/MWh, and 2.57, respectively. The new HECAM II model showed that the operation of Bakhtiari Dam would alleviate the socio-environmental doubts through a long-term plan in the region.

Highlights

Construction of hydro-dams, similar to other structures of this type and scale, has always involved positive and negative consequences [1]
Sedimentation and evaporation were two new phenomena, which were included in Hydropower’s Environmental Costs Analysis Model (HECAM) II in order to bring out the actual costs and benefits of dam construction
The estimated costs and benefits of damming were compared with those quantities obtained by running the SimPacts model to verify HECAM II

Summary

Introduction

Construction of hydro-dams, similar to other structures of this type and scale, has always involved positive and negative consequences [1]. These consequences include physical, biological, and socio-economic aspects [2]. Long time-series (1964 to 2018), including various climatic features, as well as Dez dam characteristics, were employed to bring out a water-energy nexus-based assessment. South Asian countries with little precipitation might benefit from floating solar technologies to alleviate potable water shortages and improve electricity production [12]. Despite the significance of economics in employing innovative technologies to enhance dams’ operation, most of the commercial assessment models neglect these parameters

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Conclusion