3.2 Value of the Forgone Power
Benefit
The quantitative relationship between sedimentation and the hydroelectric potential of
Lake Lagdo
The accumulation of sediments in the direct storage
of the reservoir leads to a reduction in the water
storage capacity of the reservoir. The assumption is
that all sediments go to direct storage. A loss of
16.92 m
3 of water due to an equivalent volume of
deposited sediment would mean a loss of one
kilowatt hour of electrical power. Thus, it is easy to
establish that the 40.80 million cubic meters of
water replaced each year by an identical volume of
sediment has the potential for hydroelectric production loss of 2.4 million KWh per year.
Monetary valuation of the quantitative link
The aim here is to convert this potential energy
lost every year into monetary value. The quantity
of potential lost energy calculated above is
multiplied by a price, in this case, the price
established on the electricity market by Eneo
Cameroon. It should be noted that Eneo Cameroon is distributing and pricing the energy produced from the Lagdo Dam according to a
categorization of consumers (Table 3).
The energy produced is divided between industry, non-domestic consumption (petty trade, etc.)
and domestic consumption (households). To determine the monetary value of the annual potential loss
of electrical energy, different quantities of energy
that can be consumed are valued at equivalent prices for each category of consumers. Table 4 shows
the monetary value of the hydroelectric potential
lost annually due to silting.
Table 3 Distribution of energy consumption at the plant
outlet in 2011 (in million KWh)
Power
generated
Industry
(50%)
Non-domestic
consumption
(30%)
Domestic
consumption
(20%)
2. 4
1. 2
0.72
0.48
Table 4 Calculation of the value of hydroelectric potential lost each year
Consumed power
Tranche
(kWh)
Price
a (CFA
francs
b
)
Average
Price
a
(CFA
francs)
Monetary value (million CFA
francs)
Industry
0–200
52
50
60. 2
201–400
50
400 and
more
48
Non-domestic
consumption
0–110
75
83.75
60. 5
111–400
80
401–800
85
800 and
more
92
Domestic consumption
0–110
50
71.25
34. 3
111–400
70
401–800
80
800 and
more
85
Total
Total monetary value on the 3 electricity range (155.2 million CFA s)
a The prices used are late 2010 prices
b
The CFA franc is the name of two currencies used in certain West and Central African countries, which are guaranteed
by the French Treasury
Economic Valuation of Environmental Services …
101
Benefit
The quantitative relationship between sedimentation and the hydroelectric potential of
Lake Lagdo
The accumulation of sediments in the direct storage
of the reservoir leads to a reduction in the water
storage capacity of the reservoir. The assumption is
that all sediments go to direct storage. A loss of
16.92 m
3 of water due to an equivalent volume of
deposited sediment would mean a loss of one
kilowatt hour of electrical power. Thus, it is easy to
establish that the 40.80 million cubic meters of
water replaced each year by an identical volume of
sediment has the potential for hydroelectric production loss of 2.4 million KWh per year.
Monetary valuation of the quantitative link
The aim here is to convert this potential energy
lost every year into monetary value. The quantity
of potential lost energy calculated above is
multiplied by a price, in this case, the price
established on the electricity market by Eneo
Cameroon. It should be noted that Eneo Cameroon is distributing and pricing the energy produced from the Lagdo Dam according to a
categorization of consumers (Table 3).
The energy produced is divided between industry, non-domestic consumption (petty trade, etc.)
and domestic consumption (households). To determine the monetary value of the annual potential loss
of electrical energy, different quantities of energy
that can be consumed are valued at equivalent prices for each category of consumers. Table 4 shows
the monetary value of the hydroelectric potential
lost annually due to silting.
Table 3 Distribution of energy consumption at the plant
outlet in 2011 (in million KWh)
Power
generated
Industry
(50%)
Non-domestic
consumption
(30%)
Domestic
consumption
(20%)
2. 4
1. 2
0.72
0.48
Table 4 Calculation of the value of hydroelectric potential lost each year
Consumed power
Tranche
(kWh)
Price
a (CFA
francs
b
)
Average
Price
a
(CFA
francs)
Monetary value (million CFA
francs)
Industry
0–200
52
50
60. 2
201–400
50
400 and
more
48
Non-domestic
consumption
0–110
75
83.75
60. 5
111–400
80
401–800
85
800 and
more
92
Domestic consumption
0–110
50
71.25
34. 3
111–400
70
401–800
80
800 and
more
85
Total
Total monetary value on the 3 electricity range (155.2 million CFA s)
a The prices used are late 2010 prices
b
The CFA franc is the name of two currencies used in certain West and Central African countries, which are guaranteed
by the French Treasury
Economic Valuation of Environmental Services …
101