Sustainability of Hydropower Global Challenges and a Global Tool

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1 Sustainability of Hydropower Global Challenges and a Global Tool Joerg Hartmann PhD Independent Consultant Accredited Lead Assessor joerg.hartmann.water@gmail.com The Challenges of Dams in Cold Climates Design, Construction, Permitting and Environmental Issues USSD Fall 2017 Workshops and Field Trips

2 Global hydropower capacity is expected to increase by % by GW of capacity would require approx. US$2 trillion of investment 2

3 Multiple Challenges large footprint project management issues high capital costs conflicting demands on reservoirs changing hydrology public skepticism regulatory uncertainty uncertain eligibility for renewables incentives etc. Source: EY, Spotlight on power and utility megaprojects, Nov. 2016

4 Similar Issues in Oil, Gas and Mining Source: Laking, S. and McNicoll, I., Social Licence to Operate - Non-technical Risk in New Field Development. ERM.

5 The Protocol What is it? A definition of sustainability in hydropower, covering ~20 topics An assessment methodology designed for all stages of project development Multi-stakeholder, internationally-agreed, and globally-applicable What is it for? To advance sustainable hydropower globally and ensure hydro contributes to a low carbon future

6 Internal, second- or third-party review of project performance Benchmarking with international good and best practices Identification, targeting and management of sustainability issues A neutral platform for communication with stakeholders Facilitating access to finance and markets

7 History World Commission on Dams Final Report IHA Sustainability Guidelines Initial IHA Sustainability Assessment Protocol Protocol text agreed Protocol launch Accreditation of assessors Protocol assessments Protocol review & update Multi-stakeholder Forum refines the Protocol Protocol Training and assessments

8 4 Assessment Tools for Different Stages in Project Cycle ~ 20 sustainability topics in each tool up to 6 criteria under each topic for each criterion, definitions for good and best practice

9 Example for Good Practice Definitions

10 Visualization of Results O-1 Communications & Consultation O-19 Downstream Flow Regime O-18 Reservoir Management O-2 Governance O-3 Environment & Social Issues Management O-17 Water Quality O-4 Hydrological Resource O-16 Erosion & Sedimentation O-5 Asset Reliability & Efficiency O-15 Biodiversity & Invasive Species O-14 Public Health O-13 Cultural Heritage O-12 Labour & Working Conditions O-11 Indigenous Peoples O-6 Infrastructure Safety O-7 Financial Viability O-8 Project Benefits O-9 Project Affected Communities & Livelihoods O-10 Resettlement

11 From Gaps to Corrective Action

12 Quality control Multi-stakeholder Governance Council established to ensure multi-stakeholder input and confidence in the Protocol content and application Accredited Assessors Formal assessments can only be undertaken by accredited assessors Assessors are trained to deliver quality and consistency

13 A Sample of Assessments Oct-10 Shardara Shardara HPP JSC Kazakhstan 100 MW Operation Oct-11 Trevallyn Hydro Tasmania Australia 97 MW Operation Sep-12 Murum Sarawak Energy Malaysia 944 MW Implementation Mar-12 Walchensee EON Germany 124 MW Operation May-12 Hvammur Landsvirkjun Iceland 84 MW Preparation Aug-12 Jostedal Statkraft Norway 290 MW Operation Sep-12 Jirau ESBR (GDF Suez) Brazil 3,750 MW Implementation Dec-12 Keeyask Manitoba Hydro Canada 695 MW Preparation Jun-13 Gavet EDF France 92 MW Implementation Sep-13 Blanda Landsvirkjun Iceland 150 MW Operation Oct-13 Sogamoso Isagen Colombia 820 MW Implementation Jan-14 Trung Son EVN/TSHPCo Vietnam 260 MW Implementation Apr-14 Santo Antonio SAE Brazil 3,150 MW Implementation Jun-14 Miel Isagen Colombia 260 MW Operation Mar-14 Cañafisto Isagen Colombia 936 MW Preparation Jun-14 Sava River Program Program Sava Ltd Croatia 160 MW Early Stage Sep-14 Kabeli A Kabeli Hydro Nepal 38 MW Preparation Nov-14 Semla IV EON Sweden 3 MW Preparation Mar-15 Multiple Projects Government of Ghana Ghana Early Stage Apr-15 Nam Lik China Three Gorges Laos 100 MW Operation Jun-15 Chaglla Odebrecht Peru 456 MW Implementation Aug-15 Itaipu Itaipu Binacional Brazil / Paraguay 14,000 MW Operation Feb-16 Mangdechhu Mangdechhu Project Authority Bhutan 720 MW Preparation Sep-16 Kaunertal Expansion TIWAG Austria 1,015 MW Preparation Nov-16 Devoll Statkraft Albania Albania 235 MW Implementation

14 Global uptake The global sustainability tool for hydropower, with large long term potential Council with ~100 participants worldwide, through seven stakeholder chambers Governance Committee (currently chaired by World Bank) working to promote uptake Increased referencing (e.g. OECD export credit agencies, Climate Bonds Initiative) Additional tools for rapid gap analysis, industry good practice guidelines Geothermal Protocol Assessments to date 26 formal assessments of a combined 24 GW Many informal uses Trainings to date >50 training events >1000 attendees

15 Potential Contribution to Hydro in Cold Climates? Power Generation (MWh/pc/year) Greenland Russia Alaska Finland Sweden Canada Norway Iceland Hydropower Share of Installed Capacity (%) Greenland Russia Alaska Finland Sweden Canada Norway Iceland

16 assessment reports, case studies governance documents: Charter, Terms & Conditions contacts to accredited assessors FAQs and news

17 Preview of Tomorrow s Session Protocol - Evolution, Governance, Methods, Results Case Studies from Northern Countries Exercises: How to Score the Sustainability Performance of a Project Against International Best Practices Discussion: Practical Requirements for Assessments, Added Value of Assessments, Possible Next Steps in Alaska Thank you!

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