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02/05/2016 1 Socio-economic and environmental implications of the small-size hydroelectric installations in the Piedmont Region mountain valleys Riccardo Beltramo Stefano Duglio University of Turin Department of Management Commodity Science area Research Centre on Natural Risks in Mountain and Hilly Environments (NatRisk) Two introductive aspects 1. The Italian energy context 2. 2020 climate & energy package (20-20-20 strategy) Riccardo Beltramo, Stefano Duglio - University of Turin Department of Management, Commodity Science area - NatRisk

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02/05/2016

1

Socio-economic and environmental implications of the small-size hydroelectric installations in the Piedmont Region mountain valleys

Riccardo BeltramoStefano Duglio

University of TurinDepartment of ManagementCommodity Science areaResearch Centre on Natural Risks in Mountain and HillyEnvironments (NatRisk)

Two introductive aspects

1. The Italian energy context

2. 2020 climate & energy package

(20-20-20 strategy)

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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The Italian Energy System

Source: ENEA, Rapporto Energia e Ambiente 2013

Coal

Natural gas

Renewables energies

Electricity

Oil

Figure 1: Demand of primary energy by source (%)

1

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

Source: ENEA, Rapporto Energia e Ambiente 2013

Figure 2: Energy dependence - total and by source (%)

Natural gas OilCoal

1

Total

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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That means

70 billion of Euro

Italian annual energy bill is about

1

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

First aim

Energy supply

To make our energy system more independent

from not renewable resources

1

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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Climate & energy package2

The package sets three key targets:

1. 20% cut in greenhouse gas emissions (from 1990 levels)

2. 20% of EU energy from renewable sources

3. 20% improvement in energy efficiency

Source: European Union (2010). Communication from the Commission Europe 2020. A strategy for smart, sustainable and inclusive growth, European Union, pag. 9,

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

At national level2

SEN – Energy National Strategy – divided into 7 main actions:

1. Energy efficiency

2. Competitive market for natural gas

3. Renewable energies

4. Development of the infrastructures for the energy market

5. Reorganization of the refining and of the fuel distribution net

6. Sustainable production of the national hydrocarbon (oil and gas)

7. New model of governance

Source: Ministero dello Sviluppo Economico – Italian Ministry of the Economic Development

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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If this is the context …………

Providing 6.1 per cent of the total energy supply,

with 874 GW in 2008 (UNEP, 2015) hydropower

represents the most important worldwide energy

source among the renewable technologies.

Source: United Nations Environment Programme - UNEP (2015). Green energy choices: the benefits, risks and trade-offs of low-carbon technologies for electricity production, UNEP, pag. 10.

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

However …

2004

2014

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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However …

1931: 3,735 MW

1961: 11,699 MW

1991: 19,271 MW

2014: 22,435 MW

+ 213.23%

+ 64.72%

+ 16.42%

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

However …

2004

2014

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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From 452 to 710 installations (+ 57.08%)

From 8,408 GWh to 9,646 GWh (+ 14.72%)

From 3,267 MW to 3,725 MW (+ 14.02%)

IN 10 YEARS

In other words

An average installed power (MW) from 7.2 to 5.2

From the big size to the medium size installations

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

There is a proliferation in projects concerning the

installations of medium-size hydropower

technologies more generally in the Italian Alps and,

specifically, in the Piedmont Region

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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31 projects under the Environmental Assessment Procedure in the last few years

Source: http://www.cittametropolitana.torino.it/cms/ambiente/via/ufficio-deposito-progetti/provvedimenti-valutazione

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

Implications

Two kinds of implications:

1. Environmental

2. Social

At different scales:

1. Global

2. Local

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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Environmental implication at different scales - GLOBAL

Sustainable energy as a key concept for green economy even if “Renewable energy technologies are not without impacts and careful planning to address possible environmental and social impacts are essential. (…), while the environmental and social impacts of large-scale hydropower can be significant. The World Commission on Dams has provided guidelines for reducing possible negative impacts of hydropower development“ (UNEP, 2011).

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

Environmental implication at different scales - LOCAL

Source: CRTAM Piemonte - La situazione in Provincia di Cuneo (2009). Proceedings of the Conference “Energia dall’Acqua in montagna: costi e benefici “, Solaro (MI)

VS

Minimum Vital Flow

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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Case study

Municipality of Ronco Canavese

1. 1,000 m a.s.l.

2. 316 inhabitants

3. Surface: 96.17 km2

4. Density: 3.28 in/km2

5. Age ratio: from 445 (2002) to 577 (2015)

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

60 km

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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11

2

3

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

1

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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2

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

3

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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Data of the power plant

Annual energy production: about 13.500 GWh

Penstock: 1,900 mKind of turbine: PeltonWater supply: • Min: 0.5 m3/s.• Max: 7.8 m3/s

Economic benefits for the Municipality: 1. Annual license fee: 20,000 €2. Annual royalties: 8% of the annual company’s “sales

volume” (however, a minimum of 90,000 € is guaranteed)

Average: 2.62 m3/s.

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

Conclusions

Need of balance

Environment

Economy

Society

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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Conclusions

Green economy

Economy with the “green”

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

Acknowledgements

Heartfelt thanks are due to Mr. Danilo

Crosasso, Major of the Municipality of

Ronco Canavese, Piedmont Region, for

providing us the data of the project

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk

02/05/2016

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References

1. Città Metropolitana di Torino, http://www.cittametropolitana.torino.it/cms/ambiente/via/ufficio-deposito-progetti/provvedimenti-valutazione, last access 18 April 1016

2. CRTAM Piemonte - La situazione in Provincia di Cuneo (2009). Proceedings of the Conference “Energia dall’Acqua in montagna: costi e benefici “, Solaro (MI),Available on

3. Ministero dello Sviluppo Economico (2013). Strategia Energetica Nazionale: per un’energia più competitiva e sostenibile, available on http://www.cai.it/index.php?id=953&L=0

4. http://www.sviluppoeconomico.gov.it/images/stories/normativa/20130314_Strategia_Energetica_Nazionale.pdf5. European Union (2010). Communication from the Commission Europe 2020. A strategy for smart, sustainable and

inclusive growth, European Union, available on

http://ec.europa.eu/eu2020/pdf/COMPLET%20EN%20BARROSO%20%20%20007%20-%20Europe%202020%20-

%20EN%20version.pdf.

6. Terna (2015). Statistics. Piemonte 2014. Pag. 188-189, available on

http://statistiche.terna.it/statistiche/documenti/bilanci/piemonte14.pdf

7. United Nations Environment Programme - UNEP (2011). Towards a Green Economy: Pathways to Sustainable

Development and Poverty Eradication, www.unep.org/greeneconomy

8. United Nations Environment Programme - UNEP (2015). Green energy choices: the benefits, risks and trade-offs of low-carbon technologies for electricity production, UNEP, available on http://www.unep.org/resourcepanel/Portals/50244/publications/Summary_for_Policy_Makers_GHG_I.pdf

Riccardo Beltramo, Stefano Duglio - University of TurinDepartment of Management, Commodity Science area - NatRisk