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ECONOMIC ASPECTS:
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Economic

Longevity of benefits

Hydropower schemes are long-lived assets. Appropriate operation and maintenance are required to ensure that they will generate electricity for decades, thus potentially providing energy services to several generations of people.

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Issue

Hydropower schemes have the capacity, with appropriate operation and maintenance, to be long-lived generation assets.  Where operation and maintenance have been inadequately undertaken, predicted electricity generation is not realised. 

Reservoir siltation is a major issue for some hydropower schemes, and without careful assessment and management it can considerably shorten the life of a dam. 

The long-term nature of hydropower developments should be recognised when undertaking cost-benefit analyses, funding arrangements and planning.  Not only electricity generation capabilities need to be considered with a long-term perspective, but also associated benefits such as water supply and negotiated benefits such as housing and job creation. 

Failure to realise the full life of a hydropower scheme can result in greater costs required to construct new generating infrastructure. 
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