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An economic method to compensate for financial losses related to environmental actions

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Hydropower scheme operations affect water ecosystems. To reduce the impacts, hydropower producer can use many technical solutions : fish pass, management of floods to transfer coarse sediments downstream or flushing of fine sediments with water release, increase of reserved flow …

Those technical solutions generate a loss of profit for hydropower producers (production of less energy , or production of energy at periods of poor market value for electricity). An economic solution has been developed to quantify this loss of profit and to compensate the producer so as to encourage him to implement environmental solutions.

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