Abstract
Technology transfer is essential for transitioning to a low carbon economy which can include hydropower. Chinese dam developers allegedly dominate the global hydropower industry. Studies have been carried out on technology transfer in their undertakings in Africa and Asia. However, such work is lacking for Europe and Latin America. The aim of this paper is to identify the extent, drivers and inhibitors of technology transfer of Chinese dam developers’ undertakings in Europe and Latin America. We find relatively few Chinese undertakings and thus limited evidence for technology transfer both in Europe and Latin America. Transfers identified are frequently mutual with the Chinese player transferring technology to the host country and vice versa. This transfer is driven by business considerations in Europe (costs, capacities) and Latin America (costs, lacking access to finance), but also geopolitical ones (Europe: creation of a trading area; Latin America: access to (natural) resources). It is impeded by Chinese dam developers’ poor reputation regarding safeguards as well as (only in Latin America) protectionist policies and significant capacities of host country players. Our research provides transparency regarding the European and Latin American hydropower industry, while also highlighting that attempts to influence what kind of technology is transferred by Chinese dam developers may be worthwhile.
Highlights
The transition towards a low carbon economy is seen as a major challenge by policy-makers around the world (Bridge et al, 2013; Geels, 2012)
While a common perception within the industry is that Chinese players are increasingly active both in Europe and Latin America, two regions declining in power, no international donor, NGO or private sector player that we talked to maintains a systematic and up-to-date overview regarding Chinese undertakings in the hydropower industry in Europe and Latin America
The aim of this study was to start closing this research gap. We did this by examining the extent, drivers and inhibitors of technology transfer in Chinese dam developers’ undertakings in Europe and Latin America
Summary
The transition towards a low carbon economy is seen as a major challenge by policy-makers around the world (Bridge et al, 2013; Geels, 2012). Its role as a renewable electricity source is projected to grow in the coming years due to an unprecedented boom in dam construction currently under way with installed global hydropower capacity expected to increase by 73% until 2040 (Zarfl et al, 2015). Despite this boom, hydropower remains extremely contested due to its vast negative environmental and social impacts (Khagram, 2004; Kirchherr et al, 2016a; McCully, 2001; WCD, 2000). This resonates with Kirchherr et al (2016b) who writes that Chinese developers would be known for delivering “large dam projects with relatively few overruns in either the schedule or budget”
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