Large Hydropower Development

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1 Best-Practice Guidelines for the Sustainable Construction and Operation of Large Hydropower Projects: A New Zealand Study Anne Jakle

2 Lending Agencies Government Private Sector Investment Electricity Privatisation Regulatory Context Public Opinion Sustainability Environmental Social Energy Demand Large Hydropower Development Economic Energy Supply Emissions credits Joint implementation/cdm Mitigating Carbon Emissions/ Kyoto Protocol

3 Lending Agencies Government Private Sector Investment Electricity Privatisation Regulatory Context Public Opinion Sustainability Environmental Social Energy Demand Large Hydropower Development Economic Energy Supply Emissions credits Joint implementation/cdm Mitigating Carbon Emissions/ Kyoto Protocols

4 Lending Agencies Government Private Sector Investment Electricity Privatisation Regulatory Context Public Opinion Sustainability Environmental Social Energy Demand Large Hydropower Development Economic Energy Supply Emissions credits Joint implementation/cdm Mitigating Carbon Emissions/ Kyoto Protocols

5 Impacts of Hydropower: uneven distribution of costs and benefits National Benefits Electricity exported to national grid to meet demand Cheap, renewable energy good for supporting energy-intensive industry Load flexibility and storage in reservoirs Compatible with intermittent wind power Side benefits of flood control and recreation with hydro dams

6 Impacts of Hydropower: uneven distribution of costs and benefits Local Costs Ecosystems and environment highly modified and negatively impacted: fisheries, water quality, sedimentation, erosion Communities flooded and downstream communities also severely impacted Boom in construction time followed by economic depression Often project delays and cost overruns high impacts lead to PUBLIC OPPOSITION

7 International Sustainability Guidelines World Commission on Dams (WCD): Dams and Development International Energy Agency (IEA:) Hydropower and the Environment International Hydropower Association (IHA): Sustainability Guidelines World Bank: Safeguard Policies International Commission on Large Dams (ICOLD): Dams and the Environment

8 Aspects of a sustainable development policy DECISION-MAKING PROCESS WCD IHA Open and transparent process Utilises the precautionary approach Comprehensive options assessment * apply env. & social criteria for project alternatives *1 * life-cycle assessment * multi-criteria ranking IEA World Bank ICOLD Klimpt International Sustainability Guidelines Decision-making process Role of policy and government Environmental aspects of sustainability Social aspects of sustainability * greenhouse gas emissions Economic aspects of sustainability Environmental Assessment *2 * initial screening * scoping * conduct enviornmental studies * appraisal * implementation (construction and operation) * monitoring * basin-level review of social and enviornmental impacts KEY Crucial for success of project High emphasis, but not imperative Included, but not emphasised Mentioned briefly Not mentioned

9 Some Common Themes Open and transparent decision-making process Public participation from the start of a project Comprehensive options assessment Thorough Environmental Assessment (Environmental Impact Assessment) Consistent, clear regulatory framework Ecological mitigation measures: minimum flow requirements, fish passages, preservation of critical natural habitats Compensate affected peoples Benefit sharing with local communities Monitoring performance and impacts throughout project life

10 What did the fish say when it hit the wall? Dam

11 How does this apply to New Zealand?

12 Hydro context in NZ ~60% of NZ s power, depending on the rainfall (60% total installed capacity) Most power generated on South Island, demand on North Island Dry years in 1992, 2001, 2003, and concerns in 2006 Estimated that 2,500MW of hydropower is feasible to develop within the next 20 years for under $.15/kWh (mostly on Waitaki and Clutha rivers) (East Harbour Management Services, 2004) NZ energy demand growing at 2%/year

13 Energy Policies Energy Efficiency and Conservation Act (2000) National Energy Efficiency and Conservation Strategy(2001) Sustainable Energy: Creating a Sustainable Energy System (2004) Energy Policy Framework (MED) National Energy Strategy (not yet complete) Climate Change Policies Climate Change Response Act (2002) Climate Change Policy Package (2002) Kyoto Protocols (2002) Water Policies Sustainable Water Programme of Action (not yet complete) Water Bodies of National Importance Sustainability Policies RMA (1991) Sustainable Development Programme of Action (2003) Hydropower Development Policy Context in New Zealand Maori Rights Treaty of Waitangi RMA

14 Case Study: Project Aqua $1.2 billion project, Meridian Energy Lower Waitaki River 540 MW (enough to power 400,000 homes) Divert 2/3 of lower Waitaki s flow into 60km canal with 6, 90MW generating plants Axed in 2004 after problems chiefly with resource consents/rma

15 Meridian $1.2 billion ($38 million loss) Towards privatisation 1990s, dissolution of ECNZ to SOEs RMA Regional Plans Building Act Soil Cons, River Control Act Electricity Act Opposition to Aqua from farmers, enviros, fishermen Meridian s policies RMA: resource consents, AEE Environmental Social Economic NZ demand increasing 2%/yr (150MW/yr needed) Project Aqua Energy Supply Natl Energy Efficiency and Conservation Strategy Goal for 30PJ increase in renewables carbon tax (axed) NZ signed Kyoto Need to reduce emissions to 1990 levels Climate Change Response Act

16 Meridian $1.2 billion ($38 million loss) Towards privatisation 1990s, dissolution of ECNZ to SOEs RMA Regional Plans Building Act Soil Cons, River Control Act Electricity Act Opposition to Aqua from farmers, enviros, fishermen Meridian s policies RMA: resource consents, AEE Environmental Social Economic NZ demand increasing 2%/yr (150MW/yr needed) Project Aqua Energy Supply Natl Energy Efficiency and Conservation Strategy Goal for 19-42% increase in renewables carbon tax (axed) Climate Change Response Act NZ signed Kyoto Need to reduce emissions to 1990 levels Coal

17 How does Project Aqua fit in with International Sustainability Aspects of a sustainable development policy DECISION-MAKING PROCESS Open and transparent process Utilises the precautionary approach Comprehensive options assessment * apply environmental and social criteria when comparing project alternatives * life-cycle assessment * multi-criteria ranking * greenhouse gas emissions Environmental Assessment/Environmental Impact Assessment * initial screening * scoping * conduct enviornmental studies * appraisal * implementation (construction and operation) * monitoring * basin-level review of social and enviornmental impacts Project Aqua Guidelines? Evaluate through: Literature review Interviews Survey?

18 What might a sustainable hydropower development policy look like in New Zealand? What is hydropower s place in the National Energy Strategy the government is currently developing? To be continued

19 Acknowledgements Ralph Sims John Holland Nigel Jollands Seth Newsome (for teaching me powerpoint)

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