The Economic Performance of Hydropower Dams Supported by the World Bank Group, 1975–2015

This paper assesses the economic benefits of 57 World Bank Group-sponsored hydropower dam plant investments. Hydropower dams are among main sources for producing electricity and largest renewable source power generation throughout world. often a lower-cost option in Clean Energy Transition addressing global climate change. Despite its conspicuous aspects, constructing has been controversial. Considering Bank’s long history as development financier, this study investigates performance supporting dams. The outcomes apply to wider community. Of projects study, 70% experienced cost overrun, more than 80% time overruns, incurring potential additional costs result. high portfolio produced present value net by 2016 over half trillion USD. Based on our findings, evaluated helped avoid billion tonnes CO2 an estimated environmental benefit valued at nearly USD 350 billion. projects’ raise real rate return from 15.4% 17.3%. implication developers is that assessment should consider overrun factor them into project-planning contingency scenarios. There considerable developing countries exploit their resources if they can be developed according industry practices international standards. case may stronger when considering benefits. even higher there greater effort manage overruns.