Worldwide, hydropower is a crucial powersupply option for several reasons. First, it is a renewableenergy resource that can contribute to sustainabledevelopment by generating local, typically inexpensivepower. Second, hydropower reduces reliance on imported fuelsthat carry the risks of price volatility, supply uncertaintyand foreign currency requirements. Third, hydro systems canoffer multiple co-benefits including water storage fordrinking and irrigation, drought-preparedness, flood controlprotection, aquaculture and recreational opportunities,among others. Finally, hydro can allow more renewables,especially wind and solar, to be added to the system byproviding rapid-response power when intermittent sources areoff-line, and pumped energy storage when such sources aregenerating excess power. For more publications on IFC Sustainability please visit www.ifc.org/sustainabilitypublications.
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