Often, hydropower is portrayed as renewable “clean energy” as it is generated by harnessing natural water cycles and flows, but is large hydropower a ‘clean’ alternative to other sources? Not necessarily, opines Lecturer at School of Management, Mae Fah Luang University, Apisom Intralawan
On its second day in office, Thailand’s current administration signed a contract to purchase electricity from the Pak Beng Dam, a large dam to be built on the mainstream of the Mekong River. This project has been stalled in negotiationsdue to sustained protests by community leaders and fishersboth in Thailand and downstream countries.
The move to construct the dam signals a troubling shift in Thailand’senergy policy, which was more cautious and environmentally sensitive in recent years. Indeed, this change in policy follows the Power Purchasing Agreements (PPAs) for two other mainstream Mekong dams, Luang Prabang and Pak Lay, which also entered into contracts earlier this year.
The development of large-scale hydropower dams is currently moving full speed ahead in spite of mounting evidence of thealready high costs of electricity associated with Thailand’s excessive reserve margin. Furthermore, there is growing public resistance to dams and the associated legal cases that emerge when communities upstream and downstream are impacted negatively by dams.
When accounting thoroughly for all external costs and benefits of hydropower, it is impossible to conclude that hydropower is “cheap” energy. Over and above the question of cost, is large hydropower a “clean” alternative to other sources? Not necessarily.
Often, hydropower is portrayed as renewable “clean energy” as it is generated by harnessing natural water cycles and flows. Proponents said that hydropower can certainly play a role in accelerating the renewable energy transition, improving aspects of climate resilience, and enhancing reservoir and irrigation capacity in the midst of irregular precipitation patterns and increased uncertainty of climate volatility.
That said, these ostensible benefits are only realized on short-time horizons, as the long-term environmental and social impact costs are vast. A recent global study shows that the costs of large scale hydropower dams outweigh the benefits. Moreover, there are currently better alternatives to meet future electricity demand, such as solar and wind energy.
A shift to a prosumer model (based on the producer and consumer together) demonstrates that a decentralizd electricity grid, which allows energy consumers to supply surplus energy to the grid can enhance national energy security. These alternatives offer a pathway for Thailand to achieve national carbon reduction targets, stimulate local economies, reduce Thailand’s vast and growing social and economic inequality, and minimize the trade-offs between water, energy, and food considerations.
Hydropower is not as clean as it seems at first glance. A thorough environmental assessment needs to take into account the full impact over the lifecycle of a hydropower project, starting from the supply chain manufacturing of concrete and steel and including emissions from construction, methane emissions from the reservoir during dam operations, to impacts from the decommissioning process.
A major study determined that dams and reservoirs significantly contribute to global warming – primarily due to methane emissions, which are more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere. Specifically, it is estimated that a considerable amount of greenhouse gases has already been emitted by the existing dams in the Mekong.
The study estimated that while 82% of 119 hydropower reservoirs and 45% of 22 irrigation reservoirs have emissions roughly comparable to other renewable energy sources, the remaining 18% have higher emissions compared to fossil fuel power plants.
Tens of millions of people living in the Mekong River Basin rely on the integrity of the river ecosystem and its natural flow cycle for food and livelihoods. International scientific communities have raised concerns about the impact of Mekong hydropower for decades. A review of published research found that dams modify water flow in rivers, exacerbate climate change impacts, escalate riverbank collapse and Mekong delta erosion due to sediment trapping, and alter flows to the vital Tonle Sap Lake in Cambodia.
This results in declining floodplain and fishery productivity. The cumulative impact of dams also contributes to salinity intrusion in the Mekong Delta in Vietnam, with massive implications for farmers, food insecurity and economic inequality. These impacts do not address any of the real risks of dam collapse nor the vast impacts of dam construction; both of which displace many village communities when they are dispossessed of their homelands and traditional livelihoods.
The list above gives just a few examples ofconcerns. Moreover, the increasing social inequities and social unrest particularly in Thailand are empirically overwhelming.
Have any of these ‘hidden costs’ of hydropower been considered when recent power purchase agreements were signed? Also, who will pay for the externalities, which are not estimated as ‘direct costs’ for these dams? And with so much at stake, isn’t it worth prioritizing alternatives?
Specifically, the recently signed and government-guaranteed contract between the Electricity Generating Authority of Thailand (EGAT) commits to purchasing power from Pak Beng Hydropower project for 29 years once the project comes online in 2033 at a price of 2.71 baht per kilowatt-hour. However, Thailand has alternatives available, which could provide similarly priced or cheaper electricity with fewer impacts.
A 2022 study indicated that the lowest-cost electricity option available for Thailand is likely to be a solar-oriented portfolio. Expansion of rooftop solar, floating solar projects on already-existing dam reservoirs, or even ground-mount solar projects are either similar in cost per kilowatt-hour or cheaper than large-scale hydropower dams, but with fewer negative impacts on the environment and society.
There is a need for a thorough reconsideration of Thailand’s energy policy and hydropower’s role within the country’s plans for a just energy transition and to achieve sustainable developmentgoals. A window of opportunity still exists to avoid irreversible changes. Committing to expensive and high-impact large-scale dams on the mainstream of the Mekong is clearly not the best option.
At the 3rd Belt and Road Forum for International Cooperation (BRF), which took place on October 18, 2023, at the China National Convention Centre (CNCC) in Beijing, our prime minister said that Thailand needs to promote green, sustainable, inclusive and equitable transition for all and declared that the country’s transport and energy sectors are crucial for this economic transition. It’s now time for the government to convert words into actions.
He is an interdisciplinary researcher and a lecturer at School of Management, Mae Fah Luang University, Chiang Rai, Thailand. He works for the Office of Border Economy and Logistic Studies, and Sustainability and the Entrepreneurship Research Center.