Discover the cost of hydro power as we examine its impacts on the environment, economy, and society. Learn about the benefits and drawbacks of this renewable energy source in this comprehensive analysis.
Table of Contents
Hydropower has been talked about for a long time as a clean and reliable energy source that can replace fossil fuels. But the hydro industry faces a number of problems that can stop it from growing and being successful. From environmental worries about the effect on wildlife and natural habitats to social worries about people being moved and getting involved, the hydro industry has to deal with a complex landscape. Technical problems, like the need to update infrastructure and the possibility of system failures, are also big problems. So are financial problems, like getting enough money and making sure it’s worth it.
This article looks at the top environmental, social, technical, and economic problems that the hydro industry faces.
The hydro industry has to follow a lot of complicated rules about the environment and deal with concerns about how it will affect wildlife and natural habitats.
Social concerns, such as displacement and community engagement, also pose significant obstacles.
To make sure the plant runs well, technical problems like infrastructure upgrades and system failures must be fixed.
For the hydro industry to be around for a long time, economic factors like funding and cost-effectiveness must be taken into account.
We will examine each challenge in-depth and explore potential solutions being implemented to overcome them.
Hydro Power’s Environmental Footprint: Impacts and Solutions
Impact on Aquatic Life
Because it uses the natural flow of water to make electricity, hydropower is often thought of as a sustainable energy source. But the hydro industry has to deal with a number of environmental issues if it wants to be around for a long time. One of the most significant concerns is the impact on aquatic life.
Hydropower plants can alter the flow and temperature of rivers and streams, which can have a significant impact on the aquatic ecosystems that depend on them. Fish, in particular, are vulnerable to these changes. For example, altering the flow of water can make it difficult for fish to swim upstream to spawn, which can affect the entire population. Changes in water temperature can also impact fish reproduction and migration patterns.
Another major concern is the impact of hydroelectric dams on fish populations. Fish can’t get to their natural spawning grounds if dams get in the way of their migration. This can result in a decline in fish populations, affecting not only the fish themselves but also the wildlife and people who depend on them for food.
The hydro industry is aware of these worries and has taken steps to lessen the damage they do to aquatic life. For example, fish ladders can be put in place to help fish get around dams and other barriers so they can get to their spawning grounds. Water flow can also be controlled to look like it does in nature, which is better for fish and other aquatic life.
However, there is still much work to be done to address these concerns. The hydro industry needs to keep coming up with new ideas and technologies to reduce its effects on aquatic life and make sure that this important source of energy will be around for a long time.
Impact on Landscapes
Aside from the effects on aquatic life, the hydro industry also has effects on landscapes that are bad for the environment. Hydropower plants usually need to build dams, reservoirs, and other structures that can have a big effect on the environment around them.
The flooding of land to make reservoirs is one of the most important things that hydroelectric dams do. This can result in the displacement of people and wildlife, as well as the loss of land and natural habitats. For example, the construction of the Three Gorges Dam in China resulted in the displacement of over a million people and the flooding of over 1,200 square kilometers of land.
Hydropower plants can also have a significant impact on the visual landscape. When dams and other infrastructure are built, they can change the natural beauty of the area, which can be bad for tourism and recreation. Also, the transmission lines that are needed to get electricity from hydroelectric plants to people’s homes can be ugly and cause more damage to the landscape.
To lessen these effects, the hydro industry has taken steps like reforestation, making new places for wildlife to live, and using low-impact building methods. For example, the construction of the Lai Chau hydroelectric plant in Vietnam incorporated sustainable design principles, including the use of environmentally-friendly materials and the integration of natural features into the landscape.
Despite these efforts, the impact of hydroelectric plants on landscapes remains a significant concern. The hydro industry needs to keep looking for new ways to help the environment while keeping up with the growing demand for clean energy.
Greenhouse Gas Emissions
Concerns about aquatic life are important, but the hydro industry also needs to think about how it affects greenhouse gas emissions. Even though hydropower is often seen as a clean energy source, it does have some effects on the environment.
One of the biggest worries is that hydroelectric dams can cause greenhouse gases to be released when organic matter breaks down in reservoirs. When organic matter breaks down, it gives off methane, which is a powerful greenhouse gas that traps heat in the atmosphere 28 times better than carbon dioxide. In fact, some studies have shown that hydropower plants can produce the same amount of greenhouse gas emissions as fossil fuel plants.
In response to this worry, the hydro industry has put in place steps to reduce the amount of greenhouse gases released from reservoirs. For example, some reservoirs are actively managed to reduce the amount of organic matter that breaks down, which can help reduce methane emissions. Also, new technologies are being developed to capture and use methane as a fuel source, which will make hydropower even less harmful to the environment.
Another way that the hydro industry can reduce its impact on greenhouse gas emissions is through the use of pumped storage hydropower. Pumped storage hydropower involves pumping water from a lower reservoir to an upper reservoir during times of low electricity demand, and then releasing the water back to the lower reservoir through turbines to generate electricity during times of high demand. This process can be used to make up for the inconsistency of other renewable energy sources, like wind and solar, and can help reduce the need for backup power from fossil fuel plants.

Source: https://www.energy.gov/eere/water/pumped-storage-hydropower
But even with all of these changes, the hydro industry still has a big effect on greenhouse gas emissions. The size of this effect depends on the project and how it is managed. The hydro industry needs to keep coming up with new ideas and technologies to reduce its impact on greenhouse gas emissions and make sure that this important source of energy will be around for a long time.
The Hidden Costs of Hydroelectric Power: Displacement, Water Scarcity and Indigenous People’s Struggle
Access to Water Resources
Access to water resources is one of the most critical challenges facing humanity. Despite being a fundamental human right, millions of people across the world lack access to clean and safe water. The issue is particularly serious in developing nations because there are frequently restrictions on access to water resources due to poverty, conflict, and poor governance. Let us explore the challenges of access to water resources, their impact on individuals and communities, and the initiatives taken to address the issue.
According to the United Nations (UN), 2.2 billion people worldwide lack access to safe drinking water. The lack of access to safe water has severe consequences for public health, leading to waterborne diseases such as cholera, typhoid, and dysentery, which are responsible for an estimated 485,000 deaths annually. Women and children, who often have to collect water, are hit the hardest by a lack of water resources because they are more likely to be attacked and miss out on educational and economic opportunities.
Also, not having access to water resources hurts farming, which is the main way that millions of people in developing countries make a living. Farmers have trouble getting their crops watered, which leads to low crop yields and less food security. Also, pollution from factories and homes and too much use of groundwater resources make the problem worse, leading to less water and worse water quality.
The challenges of accessing water resources are further compounded by climate change. Extreme weather events like droughts and floods are happening more often and are getting worse. This makes it harder for vulnerable communities to get access to water. According to the World Bank, climate change could force 100 million people into extreme poverty by 2030, primarily due to the impacts on water resources.
Even with these problems, there have been a number of efforts to help people get access to water resources. The UN says that everyone has the right to clean water and sanitation. Several international agreements, such as the 2030 Agenda for Sustainable Development, aim to make sure that everyone has access to water resources. Governments, NGOs, and private sector organizations have also started different projects to deal with the problem. For example, they are building water infrastructure, putting in place ways to save water, and teaching people about hygiene and sanitation.
However, much more needs to be done to ensure access to water resources for all. Lack of access to water resources is a complicated problem that needs to be tackled from many different angles, including poverty, conflict, government, and climate change. Governments, non-governmental organizations (NGOs), and the private sector all need to work together to find long-term solutions that give everyone access to clean and safe water. This means making investments in water infrastructure, putting in place policies that protect water resources, teaching people about hygiene and sanitation, and getting to the root causes of poverty and war.
In conclusion, access to water resources is a critical challenge facing humanity. The lack of access to clean and safe water has severe consequences for public health, agriculture, and vulnerable communities. But efforts by the international community, governments, non-governmental organizations (NGOs), and the private sector give hope for a long-term solution. We must keep working together to make sure everyone has access to clean and safe water. This is a basic human right that is important for the health and happiness of people and communities around the world.
Impact on Indigenous Peoples
Indigenous peoples are often put in difficult situations when their communities are moved. This makes it hard for them to keep their cultural identity and way of life. Indigenous people are some of the most vulnerable people to being moved because their lands and territories are often used for development projects or to get resources. Because of this, the displacement of indigenous communities has big social, economic, and cultural effects that need to be fixed to protect their rights and way of life.
The United Nations says that there are about 476 million indigenous people living in 90 countries around the world. This is 6.2% of the world’s population. Indigenous people are often ignored and left out of decision-making, which makes them more likely to be forced to move. Many times, they are not asked for their opinions or given enough money when their lands and territories are taken away. This goes against their rights to self-determination, cultural identity, and development.
The displacement of indigenous communities often leads to the loss of their traditional territories and access to natural resources, which are essential to their way of life. For example, indigenous peoples in the Amazon rainforest depend on the forest for their food, shelter, and medicine. The destruction of the forest due to development projects or resource extraction can lead to the loss of their traditional knowledge, culture, and way of life. Also, when people move, sacred sites that are important to their spiritual and cultural practices can be destroyed.
Indigenous communities being moved can also have big effects on their economies, especially for those who depend on their lands and territories for a living. People often face difficulties in finding employment in their new environments, leading to poverty and social exclusion.
Displacement can also have significant social consequences for indigenous communities. Indigenous people have strong social ties and relationships with their lands and territories, which makes moving away from them very hard. When they lose their lands and territories, traditional social systems and community structures can break down. This can lead to social isolation and a change in culture.
Also, when indigenous communities are moved, human rights can be broken, especially if they are not properly consulted or compensated. The United Nations Declaration on the Rights of Indigenous Peoples says that indigenous people have the right to give their free, prior, and informed consent for any development projects or activities that might affect their lands and territories. But in many cases, indigenous people are not properly consulted or paid for the loss of their lands and territories, which goes against their rights to self-determination, cultural identity, and development.
Infrastructure is the backbone of any economy because it gives people, businesses, and industries the services they need. However, aging infrastructure has become a major concern for governments worldwide. Aging infrastructure is the gradual breakdown of physical structures and systems that have been around longer than they were meant to be or need expensive maintenance to keep working.
The American Society of Civil Engineers (ASCE) gives the infrastructure of the United States a grade of C-. The report indicated that most of the country’s infrastructure was built in the 1950s and 1960s, and is now reaching the end of its lifespan [1]. The same goes for infrastructure around the world.
If old infrastructure breaks down, it could cause major problems in everyday life, such as power outages, transportation delays, water shortages, and communication problems. Because of population growth, urbanization, and technological advancements, the problem is getting worse as a result of increased infrastructure use.
Aging infrastructure in the United States has become a significant concern for policymakers, as many critical systems are approaching the end of their useful lives [2]. The American Society of Civil Engineers (ASCE) said in 2017 that the US needs to spend $4.59 trillion by 2025 to keep its infrastructure in good shape and improve it. This includes investment in transportation, water supply, energy, and telecommunication systems.
One of the most significant challenges in upgrading aging infrastructure is funding. Budgets are frequently a constraint on governments, and expensive infrastructure projects necessitate large sums of money. Also, many old systems were not built to meet modern standards, which makes it harder to update or maintain them.
The maintenance and upgrade of aging infrastructure have become a priority for many governments. In the United States, the federal government and many state governments have set up different programs to pay for improvements to infrastructure. For example, the US Congress just passed a bill that will spend $1.2 trillion to improve the country’s roads, bridges, and broadband internet access.
In conclusion, aging infrastructure is a significant concern for governments worldwide. Because of population growth, urbanization, and technological advancements, the problem is getting worse as a result of increased infrastructure use. Keeping and improving infrastructure that is getting old costs a lot of money, which makes it hard for governments to find the money they need. But many governments have made it a priority to fix and improve their aging infrastructure, and many programs have been put in place to pay for these improvements.
Reliability and Maintenance
Reliability is an important part of infrastructure because it makes sure that systems work the way they are supposed to and reduces the chance of a catastrophic failure. Reliability is especially important for infrastructure systems like transportation systems and water supply networks that have a big impact on safety. A report from the American Society of Civil Engineers (ASCE) says that the United States’ aging infrastructure has led to a rise in the number of breakdowns and other problems.
Maintenance is another important part of infrastructure because it makes sure that systems stay in good shape and work as planned for the rest of their lives. Maintenance activities include routine inspections, repairs, and replacements of worn-out or damaged components. Effective maintenance programs are needed to keep infrastructure systems running for a long time and prevent costly breakdowns.
The ASCE said that the United States needs to spend $2.6 trillion on infrastructure maintenance by 2029 to fix problems with existing systems and catch up on maintenance that has been put off.
One problem with maintaining infrastructure is that it’s hard to get good information about how things are working. Many infrastructure systems were built before digital sensors and monitoring systems were common. This makes it hard to get a good idea of how well they are doing. Also, because modern infrastructure systems are so complicated, it can be hard to find and diagnose problems.
Technology improvements have led to the creation of predictive maintenance methods that can help find problems before they cause a system to fail. With predictive maintenance, sensors and data analytics are used to keep an eye on the condition of infrastructure systems all the time. This lets the operators find potential problems early and fix them before the system breaks down.
Governments and organizations all over the world have used a variety of methods to make older infrastructure more reliable and easier to maintain. The Department of Transportation in the United States has set up a National Bridge Inspection Program to make sure that bridges are safe and reliable. Some states have also tried new ways to keep their infrastructure in good shape, like using drones to check on bridges and other infrastructure systems.
In conclusion, infrastructure reliability and maintenance are important parts that play a big role in making sure systems last a long time. The cost of maintenance is high, and governments all over the world have limited budgets. This makes it hard to give enough money to infrastructure maintenance. Technology improvements have led to the creation of predictive maintenance methods that can help find problems before they cause a system to fail. Governments and organizations all over the world have used a variety of methods to make older infrastructure more reliable and easier to maintain.
Resilience to Extreme Events
Extreme weather events like hurricanes, floods, and wildfires are happening more often and are getting worse because of climate change. These things can do a lot of damage to important infrastructure, which can stop essential services like power, water, and transportation from working. Therefore, improving resilience to extreme events has become a crucial concern for governments worldwide.
Resilience to extreme events is the ability of critical infrastructure to handle disruptive events and get back on its feet afterward. This includes both physical and operational resilience. Physical resilience is about making sure infrastructure can handle extreme events, while operational resilience is about making sure infrastructure can keep running even when there are problems.
In the past few years, a number of extreme weather events have done a lot of damage to important infrastructure around the world. For example, Hurricane Maria in 2017 knocked out power to a lot of people in Puerto Rico, leaving millions without power for months. In the same way, the wildfires in California in 2018 burned down more than 18,000 buildings, including important infrastructure like power lines and communication systems. These events highlight the importance of improving our resilience to extreme events.
Improving resilience to extreme events requires significant investment in critical infrastructure. A report from the Global Commission on Adaptation says that if the world invests $1.8 trillion in adapting to climate change by 2030, it could bring in $7.1 trillion in net benefits. These benefits include improved public health, increased agricultural productivity, and reduced disaster-related losses.
In addition to money, governments, businesses, and communities need to work together to make communities more resilient to extreme events. This includes putting in place policies and rules that help people be more resilient, making emergency response plans, and teaching people how to be ready.
Governments worldwide have taken steps to improve resilience to extreme events. For example, the United States Federal Emergency Management Agency (FEMA) has set up the Building Resilient Infrastructure and Communities (BRIC) program, which gives money to state, local, tribal, and territorial governments for infrastructure improvements that make them more resilient to extreme events. In a similar way, the European Union has set up the Disaster Resilience and Risk Reduction Fund, which gives money to projects in member states that reduce the risk of disaster.
In conclusion, governments all over the world are working hard to make people more resilient to extreme events. Extreme weather can do a lot of damage to important infrastructure, which can stop essential services from running. Improving resilience to extreme events requires significant investment in critical infrastructure, coordinated efforts from governments, private sector entities, and communities. Through programs like the BRIC program in the United States and the Disaster Resilience and Risk Reduction Fund in the European Union, governments all over the world have taken steps to make people more resilient to extreme events.
Economic concerns of Hydro Industry
Competition from Other Energy Sources
The cost of building and running energy infrastructure projects is greatly affected by competition from other energy sources. The energy industry is changing quickly, and technological advances have led to the creation of new, more efficient energy sources. The competition from these sources has led to a shift away from traditional energy sources, such as fossil fuels, towards renewable energy sources like solar, wind, and hydroelectric power.
The fact that renewable energy sources are better for the environment is one of the main reasons why people are switching to them. Fossil fuels are a major source of greenhouse gas emissions, which are a major cause of climate change. On the other hand, renewable energy sources release little to no greenhouse gases when they work, making them a better choice for the environment.
The move toward renewable energy sources is also being pushed by the fact that the cost of renewable energy is going down. Over the past ten years, the cost of renewable energy sources like solar and wind has gone down a lot. Since 2010, the cost of electricity from onshore wind and solar photovoltaic (PV) systems has gone down by 39% and 82%, respectively, according to the International Renewable Energy Agency (IRENA).
The move toward renewable energy sources has big effects on how energy infrastructure projects are built and run. For example, renewable energy sources are becoming more of a threat to traditional power plants that use fossil fuels, like coal-fired power plants. The Energy Information Administration (EIA) reports that renewable energy sources accounted for more than 12% of electricity generation in the United States in 2021, surpassing coal-fired power plants.

Source: Renewable energy explained – U.S. Energy Information Administration (EIA)
Renewable energy investment reached a record high in 2021 despite impacts from the COVID-19 pandemic. The amount of money spent on new renewable energy and fuels around the world is expected to hit a record high of USD 366 billion in 2021, not counting hydropower projects larger than 50 MW. Because of this investment, new renewable energy infrastructure like wind farms and solar power plants have been built.
The competition from renewable energy sources has also led to changes in how energy infrastructure projects are built and run. For example, improvements in battery technology have made it possible to store wind and solar power that is made in excess. This stored energy can then be used during times of high demand, reducing the need for backup power from traditional fossil fuel power plants.
In the end, competition from other energy sources is a big economic worry for projects that build and run energy infrastructure. Traditional fossil fuels are being used less because people are switching to renewable energy sources. This is because renewable energy sources are better for the environment and their costs are going down. This shift has significant implications for the construction and operation of energy infrastructure projects, and has led to significant investments in renewable energy infrastructure and innovations in energy storage technology.
In a nutshell, the hydro industry faces a multitude of challenges, ranging from environmental and social concerns to technical and economic challenges. To deal with these problems in a sustainable way, the industry needs to take a whole-systems approach that balances the needs of all stakeholders and has the least impact on the environment.
There are worries about how dams affect aquatic ecosystems and how reservoirs might release greenhouse gases.
Social concerns include the displacement of communities and the impact on indigenous peoples.
Concerns about technology include infrastructure that is getting old and the need for new technologies to make things more efficient and reliable.
Economic concerns include the cost of construction and competition from other energy sources.
A sustainable approach is necessary to address these challenges.
The industry should minimize the impact on aquatic ecosystems and reduce greenhouse gas emissions.
Engage with communities to minimize the displacement of indigenous peoples.
Invest in new technologies to make your business more efficient and reliable, and keep and improve your infrastructure as it ages.
Find innovative ways to reduce construction costs and embrace competition from other energy sources.
Also read: A Comprehensive Analysis of Hydro Industry Equipment Market
Also read: Hydro Power: Growth, Production Trends, and Major Players in the Global Industry
The views expressed in this article are the author’s own and do not reflect WorldRef’s views, opinions or policies.
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