Skip to main content

Advertisement

SpringerLink
Log in

Cost–Benefit Analysis of Samanalawewa Hydroelectric Project in Sri Lanka: An Ex Post Analysis

  • Original Article
  • Published:
Earth Systems and Environment Aims and scope Submit manuscript

Abstract

Cost–benefit analysis was applied for 120 MW Samanalawewa hydroelectric reservoir plant in Sri Lanka. Valuation methods were applied to estimate losses in agriculture, natural vegetation, water losses and benefits of avoided carbon emissions. The project resulted in a negative net present value under the standard conditions stipulated and possible changes to the variables to make the project positive were investigated. The study highlights the importance of valuing environmental and social impacts where large-scale transformation of land uses in sensitive areas is involved. It outlines a framework for a composite tool that could accommodate environmental externalities, social inequities and uncertainties along expanded temporal and spatial scales.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Source: Udayakumara and Shrestha (2011)

Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

References

  • Acreman M, Dunbar MJ (2004) Defining environmental river flow requirements? A review. Hydrol Earth Syst Sci Discuss 8(5):861–876

    Article  Google Scholar 

  • Adger WN, Brown K (1994) Land use and the causes of global warming. John Wiley, Hoboken

    Google Scholar 

  • Brismar A (2004) Attention to impact pathways in EISs of large dam projects. Environ Impact Assess Rev 24(1):59–87

    Article  Google Scholar 

  • Bugaje I (2006) Renewable energy for sustainable development in Africa: a review. Renew Sustain Energy Rev 10(6):603–612

    Article  Google Scholar 

  • Bundestag G (ed) (1990) Protecting the tropical forests: a high priority international task. Bonner Universitats-Buchdruckerei, Bonn

    Google Scholar 

  • CEB (1996) Samanalawewa hydroelectric project completion report. Nippon Koei Co. Ltd., Electrowatt Engineering Services Ltd, Tokyo

    Google Scholar 

  • CEB (2006) Long-term generation expansion planning studies 2006–2015. Transmission and Generation Planning Branch, Ceylon Electricity Board (CEB), Colombo

    Google Scholar 

  • CEB (2015) Long-term generation expansion plan 2015–2034. Transmission and Generation Planning Branch, Ceylon Electricity Board (CEB), Colombo

    Google Scholar 

  • de Almeida AT, Moura PS, Marques AS, de Almeida JL (2005) Multi-impact evaluation of new medium and large hydropower plants in Portugal centre region. Renew Sustain Energy Rev 9(2):149–167

    Article  Google Scholar 

  • EPA (2016) The social cost of carbon estimating the benefits of reducing greenhouse gas emissions. https://19january2017snapshot.epa.gov/climatechange/social-cost-carbon_.html Accessed 15 Apr 2018

  • FAO (1997) Energy and environment basics. FAO Regional Wood Energy Development Programme in Asia, Bangkok

    Google Scholar 

  • Fernando S (2002) Meeting Sri Lanka’s future electricity needs. Energy Sustain Dev 6(1):14–20

    Article  Google Scholar 

  • Frey GW, Linke DM (2002) Hydropower as a renewable and sustainable energy resource meeting global energy challenges in a reasonable way. Energy Policy 30(14):1261–1265

    Article  Google Scholar 

  • Fujikura R, Nakayama M, Takesada N (2009) Lessons from resettlement caused by large dam projects: case studies from Japan, Indonesia and Sri Lanka. Water Resour Dev 25(3):407–418

    Article  Google Scholar 

  • Gagnon L, van de Vate JF (1997) Greenhouse gas emissions from hydropower: the state of research in 1996. Energy Policy 25(1):7–13

    Article  Google Scholar 

  • Gunawardena UADP (2010) Inequalities and externalities of power sector: a case of broadlands hydropower project in Sri Lanka. Energy Policy 38(2):726–734

    Article  Google Scholar 

  • Gunawardena UADP (2013) An inquiry into ethical foundations of cost benefit analysis. J Environ Prof Sri Lanka 1(2):1–15

    Article  Google Scholar 

  • Hanley N, Craig S (1991) Wilderness development decisions and the Krutilla–Fisher model: the case of Scotland’s ‘flow country’. Ecol Econ 4(2):145–164

    Article  Google Scholar 

  • Hanley N, Spash CL (1993) Cost-benefit analysis and the environment. Edward Elgar Aldershot, Cheltenham

    Google Scholar 

  • Head CR (2000) Financing of private hydropower projects, vol 420. World Bank Publications, Washington, DC

    Book  Google Scholar 

  • Houghton R, Boone R, Fruci J, Hobbie J, Melillo J, Palm C, Peterson B, Shaver G, Woodwell G, Moore B (1987) The flux of carbon from terrestrial ecosystems to the atmosphere in 1980 due to changes in land use: geographic distribution of the global flux. Tellus B 39(1–2):122–139

    Article  Google Scholar 

  • IHA (2015) Hydropower status report. Int Hydropower Assoc Ltd, United Kingdom

    Google Scholar 

  • Kibler KM, Tullos DD (2013) Cumulative biophysical impact of small and large hydropower development in Nu River, China. Water Resour Res 49(6):3104–3118

    Article  Google Scholar 

  • Kotchen MJ, Moore MR, Lupi F, Rutherford ES (2006) Environmental constraints on hydropower: an ex post benefit-cost analysis of dam relicensing in Michigan. Land Econ 82(3):384–403

    Article  Google Scholar 

  • Krutilla JV, Fisher AC (1985) The economics of natural environments: studies in the valuation of commodity and amenity resources. Resources for the Future, Washington, DC

    Google Scholar 

  • Kucukali S (2011) Risk assessment of river-type hydropower plants using fuzzy logic approach. Energy Policy 39(10):6683–6688

    Article  Google Scholar 

  • Lakshman (2007). http://www2.jica.go.jp/ja/evaluation/pdf/2006_SL-P11_4_t.pdf. http://www2.jica.go.jp/ja/evaluation/pdf/2006_SL-P11_4_t.pdf. Accessed 15 Nov 2017

  • Laksiri K, Gunathilake J, Iwao Y (2005) A case study of the samanalawewa reservoir on the Walawe River in an area of Karst in Sri Lanka In: Proceedings of the 10th multidisciplinary conference on sinkholes and the engineering and environmental impacts of karst, held in San Antonio, Texas, September 2005, p 24–28

  • Manatunge J, Takesada N (2013) Long-term perceptions of project-affected persons: a case study of the Kotmale Dam in Sri Lanka. Int J Water Resour Dev 29(1):87–100

    Article  Google Scholar 

  • Manatunge J, Takesada N, Miyata S, Herath L (2009) Livelihood rebuilding of dam-affected communities: case studies from Sri Lanka and Indonesia. Water Resour Dev 25(3):479–489

    Article  Google Scholar 

  • Martinot E (2001) Renewable energy investment by the World Bank. Energy Policy 29(9):689–699

    Article  Google Scholar 

  • McCartney M, Sullivan C, Acreman MC, McAllister D (2000) Ecosystem impacts of large dams. Thematic Rev II 1:1

    Google Scholar 

  • Mei X, Van Gelder P, Dai Z, Tang Z (2017) Impact of dams on flood occurrence of selected rivers in the United States. Front Earth Sci 11(2):268–282

    Article  Google Scholar 

  • Nandalal K, Sakthivadivel R (2002) Planning and management of a complex water resource system: case of Samanalawewa and Udawalawe reservoirs in the Walawe river, Sri Lanka. Agric Water Manag 57(3):207–221

    Article  Google Scholar 

  • Pearce DW, Turner RK (1990) Economics of natural resources and the environment. JHU Press, Baltimore

    Google Scholar 

  • Pearce DW, Markandya A, Barbier E (1989) Blueprint for a green economy, vol 1. Earthscan, Abingdon

    Google Scholar 

  • Sachdev HS, Akella AK, Kumar N (2015) Analysis and evaluation of small hydropower plants: a bibliographical survey. Renew Sustain Energy Rev 51:1013–1022

    Article  Google Scholar 

  • Sample JE, Duncan N, Ferguson M, Cooksley S (2015) Scotland’s hydropower: current capacity, future potential and the possible impacts of climate change. Renew Sustain Energy Rev 52:111–122

    Article  Google Scholar 

  • Siciliano G, Urban F, Kim S, Lonn PD (2015) Hydropower, social priorities and the rural–urban development divide: the case of large dams in Cambodia. Energy Policy 86:273–285

    Article  Google Scholar 

  • TEAMS (1992a) Samanalawewa Hydro Electric Project, Environmental Post Evaluation Study-(Draft final report). TEAMS (Pvt). Ltd, Colombo

    Google Scholar 

  • TEAMS (1992b) Samanalawewa hydro electric project, environmental post evaluation study (interim report), vol 15. TEAMS (Pvt). Ltd, Colombo

    Google Scholar 

  • TEAMS (1992c) Samanalawewa hydro electric project, environmental post evaluation study (draft final report), vol 250. TEAMS (Pvt). Ltd, Colombo

    Google Scholar 

  • Udayakumara EPN, Shrestha RP (2011) Assessing livelihood for improvement: Samanalawewa reservoir environs, Sri Lanka. Int J Sustain Dev World Ecol 18(4):366–376

    Article  Google Scholar 

  • Udayakumara EPN, Wijeratne AW (2004) Estimation of economic loss due to reduction of paddy land areas: construction of Samanalawewa Reservoir. In: Proceedings of Water Professionals’ Day 2004. Geo Informatics Society of Sri Lanka (GISSL), Sri Lanka

  • Udayakumara EPN, Shrestha RP, Samarakoon L, Schmidt-Vogt D (2010) People’s perception and socioeconomic determinants of soil erosion: a case study of Samanalawewa watershed, Sri Lanka. Int J Sedim Res 25(4):323–339

    Article  Google Scholar 

  • Udayakumara EPN, Shrestha RP, Samarakoon L, Schmidt-Vogt D (2012) Mitigating soil erosion through farm-level adoption of soil and water conservation measures in Samanalawewa Watershed, Sri Lanka. Acta Agric Scand Sect B Soil Plant Sci 62(3):273–285

    Google Scholar 

  • WCD (2000) Dams and development: a new framework for decision-making. Earthscan Publication Ltd, London

    Google Scholar 

  • Winter H, Jansen H, Bruijs M (2006) Assessing the impact of hydropower and fisheries on downstream migrating silver eel, Anguilla anguilla, by telemetry in the River Meuse. Ecol Freshw Fish 15(2):221–228

    Article  Google Scholar 

  • Zhang J, Xu L, Li X (2015) Review on the externalities of hydropower: a comparison between large and small hydropower projects in Tibet based on the CO2 equivalent. Renew Sustain Energy Rev 50:176–185

    Article  Google Scholar 

  • Zubair L (2001) Challenges for environmental impact assessment in Sri Lanka. Environ Impact Assess Rev 21(5):469–478

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Natural Resources, Faculty of Applied Sciences, Sabaragamuwa University of Sri Lanka, Belihuloya, Sri Lanka

    E. P. N. Udayakumara

  2. Department of Forestry and Environmental Science, Faculty of Applied Sciences, University of Sri Jayewardenepura, Nugegoda, Sri Lanka

    U. A. D. P. Gunawardena

Authors
  1. E. P. N. Udayakumara
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. U. A. D. P. Gunawardena
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to E. P. N. Udayakumara.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Udayakumara, E.P.N., Gunawardena, U.A.D.P. Cost–Benefit Analysis of Samanalawewa Hydroelectric Project in Sri Lanka: An Ex Post Analysis. Earth Syst Environ 2, 401–412 (2018). https://doi.org/10.1007/s41748-018-0060-z

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s41748-018-0060-z

Keywords

Search

Navigation