The Role of the State in Large-Scale Hydropower Development
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While an outlier in Ecuador, the CCS dam is nonetheless emblematic of recent energy planning trends in water-rich South American countries. From the outset, Correa’s ministers singled out CCS as the only project capable of meeting growing demands for energy, as well as the need for a ‘cleaner’ electricity generation portfolio. This dual goal favors water projects of considerable scale. Once built, a large hydropower complex with a generous reservoir provides reliable and often cheaper electricity generation, as well as energy storage capacity, which makes dams especially useful in combination with intermittent sources such as wind and solar power. More importantly, utilizing water resources for power generation avoids the price and supply risks associated with fuel imports, i.e., CCS and other such projects become a matter of national security. With these goals in mind, Ecuador, as well as many other countries in South America, have recently revived plans for hydropower megaprojects. CCS is representative of another important trend. Its construction embodies what I call “south-south development ventures.” Substantial financial and technical support comes from other national institutions, such as China’s Import-Export Bank and from power developers such as Sinohydro and Goldwind. South-south development ventures open up new financing options for megaprojects, sources that come without clear procedural rules and safeguards. How was the design and development of CCS carried out overtime? At what levels and by whom were key decisions made, and what can they tell us about the politics of hydropower? What are the implications for future investment in energy projects, especially with regard to potential alternatives—costlier and intermittent sources such as wind, solar, or geothermal? How does the new political and economic context of south-south development ventures affect the consideration of social and environmental impacts, as well as the governance of megaprojects in contested territories?
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