ASSESSMENT OF FRESH WATER ECOSYSTEM SERVICES IN THE HYDROPOWER SECTOR IN MOUNTAIN REGIONS OF AZERBAIJAN

Transcription

1 ASSESSMENT OF FRESH WATER ECOSYSTEM SERVICES IN THE HYDROPOWER SECTOR IN MOUNTAIN REGIONS OF AZERBAIJAN Rovshan Abbasov, PhD May 6, 2014

2 Ecosystem Services Provided by Mountain Dams Provisioning Services Regulatory Services Cultural Services Supporting Services Water (quantity and quality) for consumptive use drinking, domestic use, and agriculture and industrial use) Maintenance of water quality (natural filtration and water treatment) Recreation and tourism (river-rafting, kayaking, and hiking, and fishing as a sport, river viewing) Role in nutrient cycling (role in maintenance of floodplain fertility), primary production Water for non consumptive use (for generating power and transport/ navigation) Aquatic organisms for food and medicines Buffering of floods erosion control through water and land interactions and flood control infrastructure Existence values (personal satisfaction and free flowing rivers Option values Predator/prey relationships and ecosystem resilience

3 Threats to ecosystems Threats to freshwater ecosystems Climate changes Contamination of freshwater ecosystems Caused by Industrial and urban air pollution Industrial, agricultural and urban effluents Consequences Increased evotranspiration from water surfaces, reduced streamflows, reduced quantity and quality of water Habitat pollution, reduced quality of water, eutrophication Degradation of freshwater sources Deforestation Agricultural, industrial and municipal water withdrawals Urbanization, agricultural development, mass removal of forests Reduced flows, narrowing and extinction of migration routes for fish, habitat degradation Erosion, landslides, riverbed sedimentation, increased turbidity, increased temperature, reduced oxygen, increased BOD levels

4 Economic benefits from ecosystems services to the hydropower and dams sector Targeted scenario analysis (TSA) approach Assesses current business as usual (BAU) ecosystems management practices and its current value of ecosystems services under BAU. It uses sector output indicators and compares with potential sustainable ecosystems management (SEM) outputs Assesses losses and potential gains (or losses) of shifting from BAU to SEM. The BAU approach is characterized by a focus on shortterm gains (e.g., < 10 years), Under SEM, the focus is on long-term gains (> 10 years);

5 Sample Indicators used to construct BAU/SEM Scenarios Sector Indicators (5-10 year trends) Employment increase (# of jobs) by sub-sector (direct, indirect and induced) Income, average annual increase by sub-sector Fiscal impacts (annual tax revenues to governments) Annual revenue from green taxes Foreign exchange earnings (annual, from exports) Opinion polls Sector investment (government) Sector investment (private sector) Damage costs (as a result from BAU practices Avoided damages costs (as a result from SEM practices) Production trend (volume and value) Sector production trend (as percentage of GDP) Changes in natural capital (e.g. # Ha under protection or SEM practices) Source: Consultants Applied in the study

6 Characteristics of BAU and SEM practices BAU High levels of siltation due to heavy erosion caused by upstream deforestation, overgrazing HPP operating and producing below the installed capacity due to water shortages Black outs the reduce sector productivity Negative impacts to there linked sectors: Low water releases to downstream during spawning periods Stakeholder conflicts Increased frequency of floods in a downstream SEM Reduced levels of siltation due to erosion control and livestock management. HPP steadily increasing production capacity in relation to installed capacity. Better releases to downstream during spawning periods Few stakeholder conflicts. Erosion related floods are minimal and improved flood management. Increased reservoir capacity Better water quality More options for tourism to man-made natural attractions Environmental flows Stakeholder management.

7 Mountain Dams # Su anbarı Sahəsi, km 2 Max həcmi, km 3 Turbinlərin gücü, Mw 2012-ci ildə istehsal, Mw/H 1. Mingachevir Shamkir Yenikend Varvara Sarsang Araz Bilav Vaykhir

8 Mountain dams map

9 Mountain Dams in Azerbaijan Municipal water supply Hydropower Irrigation Flood management or flow regulation Fisheries Recreation

10 Electricity produced, 10 6 kwh Level of investment in ecosystem management, million USD. Economic benefits from ES to hydropower and dams development Productivity and investment under BAU 4, , , , , , BAU Years Investment

11 Electricity, 10 6 MWh Million USD Economic losses in HP sector Installed Capacity Production Annual economic loss, USD 300

12 Nature-based tourism Reservoir Potential Key challenges Mingechaur Shamkir and Yenikend Araz Sarsang The rowing center near the reservoir has a great potential. The reservoirs can be used for rowing, fishing, and surfing. Suitable climate conditions prevent freezing of water throughout the year that makes reservoir very attractive for tourists and sportsmen from Russia and Ukraine. Potential annual number of tourists is 150,000 with two days stay. Attractive for fishing, surfing and boating. Mountains and natural extremes are rather close.proximity of such amenities makes the greatest contribution. Potential annual number of annual tourists is 50,000 with two days stay. Attractive for fishing, surfing and boating. Mountain areas and many types of natural springs are very close. Opportunities for extreme tourism. Could be accessed from mountain regions of Turkey. Potential number of tourists is 150,000 with two days stay Attractive for fishing, surfing and boating. Mountain areas and many types of natural springs are very close. Potential number of tourists is 150,000 with two days stay High prices for lodging. Limited number of budget hotels. The absence of general services like restaurants, car rental, trains from other cities etc. Slight remoteness from the residential areas. No lodging opportunities. Not easily accessible. Located directly on the border. Not easily accessible from the Baku. High risk, war zone. Not accessible.

13 Investments, million USD Turists, thousand person-day Investments in tourism Tourists, person-day İnvestments, million USD Spendings, USD

14 Drinkable water supply Huge water losses in a distribution network Low water quality High expenses for treated water Uneven distribution network

15 Economic losses, million USD Drinkable water supply, economic losses Economic losses Total water input Total water use Water, 10 6 m Years

16 Thousand ha Irrigated agriculture 2010 downstream floods Large areas were inundated Cotton 197 Wheat Years

17 Comparison: HP productivity and Electricity produced, 10 6 kw/h productivity in Agricultural sector Production in HP sector 4,000 3,500 3,000 Buğda Soya 2,500 2,000 1, Years

18 Total Market value, billion USD Total Market Value of Agricultural goods Years BAU SEM

19 Million USD Yearly costs for elimination of consequences of 2010 floods and suggested costs for SEM Years BAU SEM

20 Mountain streams and fish Sturgeons in the Caspian Sea Collapse of migration routes Illegal fishing Low water quality tones in 1953 (4, 2 billion Euro) Under 1000 tones in 2012

21 Produced fish, housand tones Fishery BAU 8 SEM Years

22 Million USD Market value of produced fish under BAU and SEM Years BAU SEM

23 Recommendations Improvement fish habitats through pollution preventions and launching environmental flows Prevention of illegal fishing, through legislation improvements, public awareness and enforcements Correct dam management may considerably improve flood management as well. Seasonal flow regulations and fragmentations will reduce flood and drought risks in downstream part of the Kura river Reduction of poverty may make communities less vulnerable and reduce costs for disaster risk reduction activities. Correct forest management and land use practices may reduce siltation of dams, increasing electricity outputs. It is necessary to reduce overgrazing, deforestation, and practice quotas in cattle-breeding Trans boundary management of water resources would increase effectiveness of SEM policies. These would improve migration fish routes, reduce pollution and would help to create integrated water management policies between Armenia, Azerbaijan and Georgia Policy for development of nature based tourism in regions. Investments in infrastructure, including transport, roads, hotels, touristic routes Reduction of water losses in a distribution network, though strong investments. Creating incentives to save water in agricultural sector. Implementation of advanced methods of irrigation

24 TƏŞƏKKÜR