Dams and Economic Development

Despite controversy, in many developing nations major dam projects remain important engines for economic development, and hold substantial potential for renewable energy generation. As of 2012, hydroelectric power constituted as much as 16.5% of global electricity production (and 75% of estimated renewable energy generation) (REN21, 2013). Of this, ~23% is in China, ~12% in Brazil, ~10% in Canada, and ~7.5% in the United States; combined, these four nations generate over half of the worlds hydropower!

Moreover, globally, estimates suggest that up to two-thirds of economically viable dam sites have yet to be exploited. Undeveloped sites are especially abundant in Latin and South America (79% of renewable water remains unused), Africa (96%), India and China (48% is unused in Asia) (UNEP, 2013). Rapidly growing energy demand in India, China, and the Amazon Basin have driven the construction of hundreds of large dams as of 2002 (Figures 10-11; Table 1). This development may be a harbinger of things to come on the African continent. Africa has the second highest population (after Asia), and the fastest growing (See Module 1.3); it also has the lowest per capita energy use (UNEP, 2013). Looking to the future as demand for energy, water, and food in developing nations continue to grow – both per capita and in total as populations swell - it seems inevitable that demand for large dams will persist well in to the 21st century.

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Figure 16. Number of large dams by geographic region, as of 1998 (World Commission on Dams, 2000).
Source: World Commission on Dams

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Figure 17. Map showing existing and planned hydropower projects in the headwaters of the Amazon
Source: Finer M, Jenkins CN (2012) Proliferation of Hydroelectric Dams in the Andean Amazon and Implications for Andes-Amazon Connectivity. PLoS ONE 7(4): e35126. doi:10.1371/journal.pone.0035126