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Economic benefits and security implications of trading hydropower through transboundary power grids in Asia

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  • Mikiyasu Nakayama
  • Miko Maekawa

Abstract

Countries with large potential for hydropower generation can seize large benefits by connecting their hydropower stations to transboundary power grids and trading electricity with other nations. Such benefits include income from selling hydropower; construction of hydropower stations not otherwise financially viable; certified emission reduction (CER) credits from a clean development mechanism as defined in the Kyoto Protocol; and allocation of more resources for environment conservation and resettler livelihood rehabilitation. Buyer countries can also reap gains from such a partnership, namely the importing of cheap electricity, diversification of energy sources to improve disaster preparedness, reduction of greenhouse gas emissions, and CER credits in the developing world. Possible shortcomings in terms of regional and domestic uncertainty should be addressed in designing and implementing transboundary power grids so that these impacts are prevented or mitigated.

Suggested Citation

  • Mikiyasu Nakayama & Miko Maekawa, 2013. "Economic benefits and security implications of trading hydropower through transboundary power grids in Asia," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 29(4), pages 501-513, December.
    • Handle: RePEc:taf:cijwxx:v:29:y:2013:i:4:p:501-513
    DOI: 10.1080/07900627.2012.747127
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    References listed on IDEAS

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    1. Katarzyna Kosowska & Piotr Kosowski, 2022. "Energy Security of Hydropower Producing Countries—The Cases of Tajikistan and Kyrgyzstan," Energies, MDPI, vol. 15(21), pages 1-28, October.
    2. Kaoru Ogino & Mikiyasu Nakayama & Daisuke Sasaki, 2019. "Domestic Socioeconomic Barriers to Hydropower Trading: Evidence from Bhutan and Nepal," Sustainability, MDPI, vol. 11(7), pages 1-19, April.
    3. Fischhendler, Itay & Herman, Lior & Anderman, Jaya, 2016. "The geopolitics of cross-border electricity grids: The Israeli-Arab case," Energy Policy, Elsevier, vol. 98(C), pages 533-543.
    4. Llamosas, Cecilia & Sovacool, Benjamin K., 2021. "The future of hydropower? A systematic review of the drivers, benefits and governance dynamics of transboundary dams," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).

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