Impact assessment of large hydropower: the case of Belo Monte in Brazil

Abstract

Abstract The expansion of renewable energy sources, particularly hydropower plants, is essential for Brazil’s energy planning. However, large projects like the Belo Monte Hydroelectric Plant (HPP) in Pará, located in a sensitive Amazonian biome with numerous indigenous lands and traditional communities, have raised significant environmental and social concerns, often exacerbating social inequalities. This article presents an integrated approach to analyse the externalities perceived by stakeholders regarding the construction and operation of Belo Monte HPP. The research combines literature review, Environmental Impact Assessment (EIA) analysis and stakeholder interviews to investigate the environmental, social and economic impacts of the project through a multidimensional externalities framework. It examines complex interactions surrounding Belo Monte, including reduced fishing, changes in social dynamics, increased violence, job creation and economic strengthening. A qualitative study with 32 interviews, with representatives of various social groups, addresses the dimensions of sustainability, the challenges observed, the main benefits and the potential actions to mitigate the impacts and strengthen the positive results. Using textual analysis, supported by IRaMuTeQ software, the study identifies key externalities and underscores the need for greater community participation in energy-related decision-making. By systematically connecting the evidence from interviews, EIA documents and recent literature, the article advances current debates on the sustainability of large hydropower projects and on just energy transitions in the Amazon, providing practical insights to improve environmental licensing, compensation measures and participatory governance in Brazil’s electricity sector.