Hydropower Potential, Marginality and Sustainable Regional Development. Examples from Tyrol/Austria and Aisén/Chile

Abstract

With a factor analysis of regions of similar development in the Alps, it could be demonstrated that about one quarter of the Alpine Arc belongs to “forgotten rural areas” and “rural retreats”. A similar factor analysis predicts the situation similar for the Chilean mountain regions. It is demonstrated that most mountain communities are depressed and in a marginal position, too. As the hydropower potential in mountainous regions lies in marginal areas it can be questioned if the exploitation of hydro energy will fight marginality and induce regional sustainability. The rising demand for energy caused by new technologies in mobility, the need to reduce CO2 emissions and to produce safe, clean and renewable energy is obvious. As climate change and increased water scarcity become more and more critical, the construction of hydro power plants may decrease the mountain exodus in remote areas and the structural weaknesses in marginal regions. Dams not only produce electricity, but also drinking water for the people and irrigation water for agriculture. They have retention function in periods of heavy rainfall, mitigate inundations and complement the retention function of smelting glaciers. In many cases they also provide recreational (swimming, sailing, wind surfing, hiking etc.) and educational functions (visitor centers). Furthermore, by their storage facilities pump storage hydropower plants complement the production of wind and solar energy, which is not produced continuously. This paper intends to analyze how hydropower installations may reduce marginality and rural exodus of remote mountain regions and serve to initiate sustainable regional development. It is based on detailed analyses, realized for the Tyrolean Hydropower Company (TIWAG) and on studies in the Chilean Andes.