The role of cloud forest restoration on energy security

The conservation of cloud forests has recently been recognized as important for the optimal operation of hydropower infrastructure. However, large areas of cloud forest have been deforested globally, which may suggest that many tropical dams, downstream of these deforested areas, are currently operating at suboptimal levels. This is the case in a country like Colombia where 55% of pre-colonial cloud forests have disappeared. Incentives like Payments for Watershed Services have tried to involve Colombia׳s energy sector in improved watershed conservation with limited success. Since hydropower companies likely benefit significantly from eco-hydrological services provided by cloud forests, a new generation of incentives for facilitating their engagement in ecosystem protection is desperately needed. Through simulation of the effect of cloud forest restoration on the hydropower output of the Calima dam system, using innovative process based eco-hydrological models and dam operational modeling, we explore the implications of cloud forest restoration for energy security and expansion in Colombia and propose an innovative financial mechanism to help engage energy companies further in improved cloud forest protection in Colombia and beyond.