Sustainability of Hydropower –Global Challenges and a Global Tool

Joerg Hartmann PhDIndependent Consultant

Accredited Lead Assessorjoerg.hartmann.water@gmail.com

The Challenges of Dams in Cold ClimatesDesign, Construction, Permitting and Environmental Issues

USSD Fall 2017 Workshops and Field Trips

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Global hydropower capacity is expected to increase by 50-100% by 2050

800 GW of capacity would require approx. US$2 trillion of investment

Multiple Challenges

Source: EY, “Spotlight on power and utility megaprojects”, Nov. 2016

• large footprint• project management issues• high capital costs• conflicting demands on reservoirs• changing hydrology• public skepticism• regulatory uncertainty• uncertain eligibility for renewables incentives• etc.

Similar Issues in Oil, Gas and Mining

Source: Laking, S. and McNicoll, I., 2013. Social Licence to Operate - Non-technical Risk in New Field Development. ERM.

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

• 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

History

2009

World Commission on Dams Final Report

Initial IHA Sustainability Assessment Protocol

IHA Sustainability Guidelines

Multi-stakeholder Forum refines the Protocol

Protocol Training and assessments

2001 2002 2003 2004 2005 2006 2007 20082000 2010 2011 2012

Protocol launch

2013 2014

Protocol text agreed

2015 2016 2017

Protocol assessments

Accreditationof assessors

Protocol

review & update

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

Example for Good Practice Definitions

Visualization of Results

O-1 Communications & Consultation

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O-2 Governance

O-3 Environment & Social Issues Management

O-4 Hydrological Resource

O-5 Asset Reliability & Efficiency

O-6 Infrastructure Safety

O-7 Financial Viability

O-8 Project Benefits

O-9 Project Affected Communities & Livelihoods

O-10 ResettlementO-11 Indigenous Peoples

O-12 Labour & Working Conditions

O-13 Cultural Heritage

O-14 Public Health

O-15 Biodiversity & Invasive Species

O-16 Erosion & Sedimentation

O-17 Water Quality

O-18 Reservoir Management

O-19 Downstream Flow Regime

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3

From Gaps to Corrective Action

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

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

A Sample of Assessments

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

Potential Contribution to Hydro in Cold Climates?

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10

20

30

40

50

60

Greenland Russia Alaska Finland Sweden Canada Norway Iceland

PowerGeneration(MWh/pc/year)

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10

20

30

40

50

60

70

80

90

100

Greenland Russia Alaska Finland Sweden Canada Norway Iceland

HydropowerShareofInstalledCapacity(%)

www.hydrosustainability.org• assessment reports, case studies• governance documents: Charter, Terms & Conditions• contacts to accredited assessors• FAQs and news

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!