Private Investments are Becoming a Major Role in the Hydro Energy Sector
In anticipation of the 2013 World Congress on Advancing Sustainable Hydropower to be held the first time in Asia, the International Hydropower Association (IHA) has highlighted that Private Investments are Becoming a Major Role in the Hydro Energy Sector.
Richard Taylor, executive director of IHA stated during a networking session yesterday that the private sector’s investments in hydro energy was experiencing a robust growth.
“First of all hydropower is one of the main components in the world’s electricity supply with 150 countries using hydropower in some way and about 60 of those countries have hydropower providing a majority of the electricity.
“It generates 16 per cent of the world’s current energy generation and for 2012, roughly 1,000 gigawatts (GW) of energy is provided from hydropower,” Taylor enthused.
Taking into consideration Sarawak’s electricity tariff at 35 sen per kilowatt hour (kWh), this would imply generation of roughly RM350 million per hour should the full capacity of 1,000GW be converted into consumable energy.
“Private sector spending in hydropower is dramatically increasing with most hydropower projects having private sector investments. That’s not to say it’s exclusive (among renewable energy sources) but the role between public and private partnership is coming out and models behind that are diverse,” Taylor explained.
“In terms of the private sector’s involvement in the hydro energy sector it can simply be through joint ventures, or the location and design of the projects may be determined by the public sector and the project would be tendered out for the participation of the private sector with public sector guidance.
“The private sector would then probably operate the facility for a period of time ranging from 10 years to 50 years and then return the assets back to the public sector after a chance to recoup the initial investment,” he added.
“That’s an increasingly common model now as we have learnt to manage risks and attract investments.”
The biennial IHA World Congress on Advancing Sustainable Hydropower is the fourth in a series of landmark hydro-related international events. It will take place for the first time in Asia and provide an international forum to present and discuss real world solutions to energy, water and climate change challenges.