Environmental Impacts of Power Generation

Environmental impacts of Hydropower Projects – Mitigation Environmental Impacts of Thermal Power Projects – Mitigation Economic evaluation of environmental impacts

Environmental Impacts of Hydropower Projects Main features of Major Hydropower Projects Inundation of large tracts of land Construction of long underground tunnels and power caverns Construction of large dams Release of large quantities of water De-watering of large extent of river etc.

Environmental Impacts of Hydropower Projects Inundation of land Resettlement of people Loss of fertile land Loss of fauna and flora Loss of bio-diversity Loss of endangered species and loss of habitat

Environmental Impacts of Hydropower Projects Construction of long underground tunnels De-watering of surface water and drying up of springs Triggering of land slides Disposal of excavation muck Noise and vibrations

Environmental Impacts of Hydropower Projects Construction of large dams Visual impacts Obstruction to navigation Obstruction to migratory fish Eutrifitaion – water quality

Environmental Impacts of Hydropower Projects De-watering of large extent of river Loss of water falls Loss of water for human consumption Loss of marine fauna and flora Breeding of mosquitoes and other undesirable insects

Environmental Impacts of Thermal Power Projects Main Features Burning of fossil fuels except in the case of nuclear Use of large quantities of cooling water Use of process water Use of large quantity of combustion air Use of chemicals Production of waste material

Environmental Impacts of Thermal Power Projects Burning of fossil fuels Emission of CO 2, So x, No x and other harmful gases Emission of soot

Environmental Impacts of Thermal Power Projects Use of large quantities of cooling water Rising of temperature of inland and off shore water bodies Disturbance to marine life both fauna and flora Change of breeding habits of marine life Discharge of harmful chemicals used as biocides

Environmental Impacts of Thermal Power Projects Use of process water – Creates local shortages of potable water Use of large quantity of combustion air – Noise Use of chemicals – Discharges into nearby water bodies and soil – Leachate pollution of springs and surface water sources

Environmental Impacts of Thermal Power Projects Production of waste material – Ash disposal – Dust pollution (SPM) – Leachates – heavy metals – Sludge

Mitigation of Environmental Impacts Resettlement of people – use lending agencies guidelines Loss of fertile land – no solution open up new areas – Deforestation? Loss of fauna and flora – afforest, relocate Loss of bio-diversity – Reestablish Loss of endangered species and loss of habitat. No solution?

Mitigation of Environmental Impacts De-watering of surface water and drying of springs – Provide alternate source of water Triggering of land slides – Improve embankments Disposal of excavation muck – use for construction material or land reclamation Noise and vibrations – use noise barriers

Mitigation of Environmental Impacts Visual Impacts – Incorporate special features into design. Obstruction of navigation – Install lock gates. Obstruction to migratory fish – construct fish ladders Eutrification – water quality monitor and clean

Mitigation of Environmental Impacts Loss of waterfalls – redesign with water releases Loss of water for human consumption – provide alternate sources Loss of marine fauna and flora – adopt minimum releases Breeding of mosquitoes and other undesirable insects – same as above.

Mitigation of Environmental Impacts emission of CO 2, - a Global issue – Use alternate fuels and technology Sox, Acidic gas – local issue – FGD, Use Low Sulfur Fuels. No x, Acidic gas – local issue – Low No x Burners, Catalytic Converters, injection of steam or water. Emission of SPM Bag filers, ESP

Mitigation of Environmental Impact Rising of temperature of inland and off shore water bodies – Use appropriate design Disturbance to marine life both fauna and flora - Avoid sensitive areas Change of breeding habits of marine life – Avoid sensitive areas discharge of harmful chemicals used as biocides – Treatment before discharge

Mitigation of Environmental Impact Noise – Use noise barriers Leachates – Install impervious barriers Visual Impacts – use common designs to be in harmony with the surrounding Create recreational areas Disposal of waste material according to standards

Mitigation of Environmental Impacts Always meet local environmental standards

Economic Evaluation of Environmental Impacts Can only be done: If Environmental Impacts cannot be mitigated If Environmental Impacts are not negligible If Impacts can be objectively assessed and are not too sensitive and uncertain And If Quantitative assessment can be completed

Total Environmental Value TEV = Use Value + Non Use Value Use Value = Direct Use Value + Indirect Use Value NUV= Existence Value + Bequest Value

Popular Methods of Evaluation Productivity Change Method Preventive and Replacement Cost Method Human Capital Method Hedonic Value Method Travel Cost Method Contingent Valuation Method Benefit Transfer Method

Productivity Change Method Principle : When a change in the environment affects a marketable commodity the value of the environmental change can be represented by the change in the commodity’s market value due to its impact.

Productivity Change Method Method Estimation of the damage function Estimation of the market value Advantages Easily understood well defined scientific approach and the market estimation is easy Disadvantages damage function estimation involves scientific research and there may be other cause and effect relationships.

Preventive and Replacement Cost Method Principle : Value the cost to prevent damage or value to replace the damage. Method : Estimate actual cost people incur to prevent or replace the damaged environment or estimate based on technical expert’s opinion.

Preventive and Replacement Cost Method Advantages : Readily acceptable ‘cos of clear perception of people Disadvantages : It assumes that the people are aware of the whole damage and is biased on income level. Replacement cost estimates assume that the damage is replaceable and can be resorted. This may not be technically feasible.

Human Capital Method Principle : Cost of human health, value of lost productivity, pv of potential productivity. Method : Estimation of number of people affected, estimation of loss of productive days, use dose response function etc.

Human Capital Method Advantages : Simple and acceptable to policy makers Disadvantages : Cause and effect may not be directly related. Expensive and time consuming research required. What about the unemployed? Is valuing of human life ethical?

Hedonic Value Method Principle: Property value and wage differential method. These are used as surrogates. Method : Based on an extensive data base on property and wage differentials in varying environmental quality conditions and then using regression techniques estimate the ‘value’ of environmental quality

Hedonic Value Method Advantages: More objective and represents Total Environmental Value Disadvantages: Large data base and sophisticated mathematical tools are requires. Primary data may not be representative of environmental quality as the degradation of environmental quality itself may not be apparent.

Travel Cost Method Principle : Cost of travel to site and the value of productive time lost. Method : Divide entire population into equi-distant equi-cost zones then the WTP is estimated using regression. Advantages : TVE can be estimated. Disadvantages : Regression may introduce error. Leisure time is not loss of productivity.

Contingent Valuation Metohd Principle : Based on a survey where people are asked of their WTP for environment benefit and WTA compensation for loss. Method : Surveys Advantages : Theoretically acceptable. This is applicable where there is no market. Disadvantages: Hypothetical. Assumes people are fully aware of the losses. Can be biased.

Benefit Transfer Method Principle: Value of environmental benefits/ costs already estimated are transferred with modifications. Methods : Use similar impacts and projects but use property value, income differentials etc to modify. Advantages : Easy and faster. Disadvantages : Acceptance always questionable due to different circumstances.

What Do we do after evaluating the Environmental externalities? Internalise the external cost of environment - In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit. One could adopt policies that "internalize" an externality, so that costs and benefits will affect mainly parties who choose to incur them Demand curve with external costs; if social costs are not accounted for price is too low to cover all costs and hence quantity produced is unnecessarily high (because the producers of the good and their customers are essentially underpaying the total, Cost of Supply shifts up A new supply and Demand equilibrium is reached leading to lower impact on the environment

Multi Attribute Multi Objective Decision Making Analysis When monetization of environmental costs/benefits are difficult and ambiguous and the macro objectives are to be analyzed this method could be used. A clear perception of objectives to optimized is required.

Estimation of Emissions from Fossil Fuel Burning Top Down Approach – Calculate all carbon burnt in all fuels consumed in the country. Bottom up Approach – Use sectoral fuel consumption in each technology and estimate emissions from each conversion process. Use basic equations or emission factors.