Name: ID: Field of Study: Thesis Committee: Title: Mrs. Khin Seint Wint St 110181 Water Engineering and Management (WEM) Dr. Sylvain Roger Perret (Chairperson) Type: Thesis Assessing the potential environmental impacts of hydropower projects in Myanmar: comparison with lignite thermal project and opportunity for clean development mechanism Abstract Hydropower as a source of renewable energy has drawn tremendous interest and investments in recent times in South East Asia, as the region is ill-endowed with fossil energy resources. Along with Southern China, Laos and Thailand, Myanmar has engaged into the development of reservoir projects, while more traditional energy generation techniques still apply (mostly coal-based). However, hydropower projects are raising concerns about their social and environmental impacts, the latter being largely unknown. Required Environmental Impact Assessments are not always carried out properly, and, in any case, fail to reveal possible regional or global impacts, nor transfers of impacts. The present study investigates the potential environmental impacts of two hydropower projects in Myanmar, as compared to one lignite thermal project, using the Life Cycle Assessment (LCA) approach. Further, it investigates the possibilities of implementing Clean Development Mechanism (CDM) scheme options for seeking financial support. The main case study is the so-called Upper Keng Tawng reservoir project, where initial environmental examination is finished, and yet EIA was not completed effectively. It was therefore proposed to undertake environmental impact analysis through LCA, as part of the research. The action does not mean a replacement of EIA, but it intends to provide a more complete picture of impact assessment including regional and global perspectives. LCAs of downstream run-of-river project and neighboring lignite thermal project (Tigyit) have also been carried out, to compare with that of the reservoir project. Static and attributional LCA, based on functional unit of 1 kWh, was performed. The approach considered materials, energy, land use, emission to air, water, and disposal/waste management during construction, and 50-year operation of the studied projects. Transmission and distribution of electricity are excluded from analysis. The SimaPro software (version 7.3) was used, using both EI-99 (H, A) and CML baseline methods for impact assessment. Adjustments from existing database proved necessary since the quality of lignite at Tigyit mine is higher than that of European lignite (667 g/kWh in Tigyit, 1,544 g/kWh in Slovakia, 1,979 g/kWh in Greece and 771 g/kWh in France). Considering 1 kWh of electricity generation at Tigyit coal thermal plant, total estimated impact is 154 mPt whereas impacts of European lignite thermal plants are situated in the range of (+ 15 %) to (- 68 %) of it. Compared with European LCIAs, LCIA of Tigyit coal thermal plant has been more thoroughly documented. It is found that 71 % of overall impact occurs due to particulate matters, sulphur dioxide and sulphur trioxide emission which causes troubles to human respiratory system. When many processes which are not considered in European LCIAs are discarded from the study, 1 kWh of electricity generation at Tigyit coal thermal plant contributes 86.7 mPt whereas impacts of European lignite thermal plants are situated in the range of (+104 % ) to (- 42 %) of it. The study displays that electricity generation of Upper Keng Tawng reservoir project causes 3.15 mPt per kWh and that of Keng Tawng run-of-river project makes 0.911 mPt per kWh. Potential impacts of Upper Keng Tawng reservoir project is 75 % higher than that of Keng Tawng run-ofriver project. Compared with run-of-river projects in EU and Switzerland, Keng Tawng (Myanmar) contributes 11 % more impacts. Upper Keng Tawng reservoir project (Myanmar) makes 26 % more impacts than Brazilian reservoir projects. When impact contributions of Tigyit coal thermal project and Keng Tawng and Upper Keng Tawng hydropower projects are compared, reservoir project and run-of-river project make merely 2.49 % and 0.62 % of total impacts incurred by coal thermal project respectively. Availability of financial support for Upper Keng Tawng reservoir project is studied by ACM 0002 method in CDM scheme. Additionality analysis is made and channeling electricity from the national grid system is designated as a baseline emission scenario in the absence of a proposed CDM project. OM emission factor of 2.807 tCO2/MWh and BM emission factor of 0.827 tCO2/MWh are estimated by dispatch system analysis. Comprehensive financial analyzes are made, and it is found that PIRR of 51 MW lignite thermal plant is 18.64 % and that of 51 MW reservoir project is 9.556 %. Sensitivity analysis shows that increasing electricity price from current 2.78 cents per kWh to 4.17 cents per kWh (i.e. +50 %) can boost the PIRR of reservoir project to 13.68 %, whereas target PIRR is 14 %. The study therefore recommends increasing the current low electricity price. The research concludes that potential environmental impacts of hydropower and lignite thermal plants in Myanmar are of the same respective magnitude than those studied in other parts of the world. It confirms the huge advantage of hydropower in terms of minimizing environmental impacts as compared to lignite thermal plants. It highlights that run-of-river hydropower projects have lesser impact than reservoir projects. Finally feasibility of CDM as a financial resource to project is questioned as current electricity price in Myanmar is too low to generate proper IRR. Keywords: Life Cycle Assessment (LCA), Life Cycle Impact Assessment (LCIA), Clean Development Mechanism (CDM), reservoir hydropower project, run-of-the-river hydropower project, lignite thermal plant, SimaPro 7.3, EI-99 (H,A) , CML baseline, PIRR