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Sustainable Hydropower Guidelines, Good Practice and Certification Richard Taylor and Andrew Scanlon

International Hydropower Association (IHA) Who are we?

• Non-governmental mutual association of organizations and professionals working or studying in the hydropower sector.

• Founded in 1995, under the auspices of UNESCO, to advance knowledge on all aspects of hydropower and to promote good practice.

• Current membership: 1100 Individual and 94 Corporate members, from 83 countries.

• Main objective: “Advancing Sustainable Hydropower”

International Hydropower Association (IHA) Vision statement Advancing hydropower’s role in meeting the world’s water and energy needs by: • Championing continuous improvement and sustainable practices • Building consensus through strong partnerships with other stakeholders • Driving initiatives to increase the contribution of renewables.

Advancing sustainable hydropower

Sustainability Initiatives The International Hydropower Association is establishing sustainability standards for the industry.

Initiatives include: • • • • •

Sustainability Guidelines, Compliance Protocol (3 volumes), Blue Planet Prize Sustainable Hydropower website, and a proposed Certification Scheme.

Advancing sustainable hydropower Sustainability Guidelines

Compliance Protocol

Blue Planet Prize

Sustainable Hydro Website

Certification

Context Hydropower: • currently delivers 91.7% of the world's renewable electricity (World Statistics, EC, 2000)

and • offsets the need for 4.4 million barrels of oil-equivalent each day (WCD Report, 2000)

Demand for electricity

World’s realistic potential developed: 33 % Current hydro production: 2740 TWh/y Realistic potential production: >8000 TWh/y 75%

69%

22%

33%

7% 49%

Current hydro generation: Africa = 80 Asia = 800 Australasia = 43 Europe = 570 N/C America = 700 S America = 550 (TWh/year) Source: World Atlas of Hydropower & Dams, 2002

Hydropower, post 2025

Current contribution, 2004 2743 TWh/y

Australasia Asia

Africa South America

Future contribution, >2025 6600 TWh/y

Europe

North America

Australasia Asia

Europe North America

Africa

South America

Region

Current output (TWh/y)

Part of potential (%)

Total potential (TWh/y)

Realistic contribution (TWh/y)

New-build contribution (TWh/y)

Europe

570

72

792

633

63

North America

700

69

1014

812

112

South America

550

35

1571

1257

707

80

7

1143

914

834

800

22

3636

2909

2109

43

49

88

70

27

2743

~

8245

6596

3853

Africa Asia Australasia Total

Priorities: Plant-life extension / incremental power + New-build hydro development

Pumped-storage cycle

All scales of hydropower play an important role

Criticisms of Hydropower

What are some NGOs saying?

• Damages ecosystems • Disrupts societies through population displacement • Detrimental downstream socio-economic impacts • Greenhouse gas emissions • High risk investments

Is hydropower in the minds of the media and decision-makers?… to help address: • Security of supply (water and power) • Fuel-cost escalation • Emissions abatement • Increasing demand • Retirement of old plant • Changing markets

The importance of hydropower for development was made clear by several developing country energy ministers in Bonn–inOutcome June 2004.

Renewables 2004 The Bonn Declaration reaffirms that hydropower is one of the renewable technologies that can “significantly contribute to sustainable development, to providing access to energy, especially the poor, to mitigating greenhouse gas emissions and reducing harmful air pollutants, thereby creating new economic opportunities and enhancing energy security through cooperation and collaboration.” – signed by 154 countries

The hydro sector should fully embrace sustainability

Economy

Environment Sustainability

Society

Striking a balance on a foundation of sound technology

Advancing sustainable hydropower Sustainability Guidelines

Compliance Protocol

Blue Planet Prize

Sustainable Hydro Website

Certification

Learning from the past IHA has developed Sustainability Guidelines that are: 他 hydro-specific

他 rigorous 他 pragmatic

IHA Sustainability Guidelines The International Hydropower Association (IHA) Sustainability Guidelines provide a framework for good practice. They were developed over 18 months with significant review and consultation.

The Guidelines were adopted by the IHA in November 2003.

They are aimed at supporting the development of a more sustainable hydropower sector.

The guidelines address social, environmental and economic aspects of sustainability.

Advancing sustainable hydropower Sustainability Guidelines

Compliance Protocol

Blue Planet Prize

Sustainable Hydro Website

Certification

Compliance Protocol To support the implementation of the IHA’s Sustainability Guidelines, a three-volume Compliance Protocol has also been developed.

It has been through a series of trials at a number of hydropower facilities around the world.

The Protocol provides an assessment process to measure sustainability performance of: • new energy options • new hydro projects, and • operating hydropower facilities.

Elements – Section C Operating Hydropower Facilities C1

Governance

C11

Suppliers and service providers

C2

Economic viability

C12

Cultural heritage

C3

Additional benefits

C13

Social commitments

C4

Range and flexibility of electricity supply services

C14

Environmental commitments

C5

Operational efficiency

C15

Reservoir management

C6

Operational short-term and long-term reliability

C16

Environmental flows

C7

Community acceptance

C17

Aquatic biodiversity

C8

Dam, power station and associated infrastructure safety

C18

Water quality

C9

Employee safety

C19

C10

Employee opportunity, equity, and diversity

C20

Reservoir and downstream sedimentation and erosion risks Catchment management and terrestrial biodiversity

Aspects Assessing different aspects of sustainability?

Economic

Social

Environmental

Compliance Protocol “A”

9

6

5

Compliance Protocol “B”

4

7

9

Compliance Protocol “C”

6

7

7

Compliance Protocol Scoring Score

Description

5

• At or very near international best performance.

• Suitable, adequate, and effective planning and management systems.

• Meets or exceeds objectives and measurable targets.

2

• Below average performance.

• Some gaps in compliance with regulations and commitments.

• Significant gaps in planning and management systems.

• Significant gaps in meeting objectives and measurable targets.

Examples – C1 Operating Hydropower Facilities

C1

Aspect: Governance.

Looks at the governance of the business in terms of sustainability objectives.

Score

Business Principles

• Clearly defined vision, values, strategies, or 5

business principles that have strongly embedded and comprehensive sustainability objectives.

• Meets and often exceeds regulatory requirements and other commitments.

• Significant incorporation of sustainability 4

objectives in values, strategies, or business principles.

• Meets and occasionally exceeds regulatory requirements and other commitments.

Systems, Structure, and Reporting

• Comprehensive, independently certified management systems.

• An efficient and effective business structure.

• Transparent performance reporting process.

• Good management systems, not necessarily independently certified.

• A largely efficient and effective business structure.

• A largely effective performance reporting process.

Advancing sustainable hydropower Sustainability Guidelines

Compliance Protocol

Blue Planet Prize

Sustainable Hydro Website

Certification

Advancing sustainable hydropower Blue Planet Prize Four step process for the evaluation of the 2005 candidate schemes: • •

• •

Self-assessment through the Compliance Protocol Submission of detailed report demonstrating technical, economic, social and environmental good practice – and excellence in one or more of these aspects Site visit by two members of the panel of judges, followed by brief report/proposal to the remainder of the panel Final consideration and decision by the panel

Advancing sustainable hydropower Sustainability Guidelines

Compliance Protocol

Blue Planet Prize

Sustainable Hydro Website

Certification

Hydropower Certification Why Certify?

• External verification of sustainability performance against an international standard.

• Internal driver for improved business performance.

• Potential qualification for premium pricing schemes.

• Lighter regulation, better relationships with regulators.

• Easier access to finance.

• Enhanced asset value.

• Better stakeholder relationships, reputation.

Certification Process Who decides?

• Governing Body – consists of industry, a standards organisation and NGO representatives.

• Governing Body accredits auditors.

• Potential certification candidates apply to Governing Body • Governing Body appoints audit team.

• Auditors complete audit and submit recommendations to Governing Body (communication process with certification candidate).

• Governing Body makes a decision on certification.

Proposed Certification Scoring Using the Compliance Protocol

•

Minimum score of 3 on all aspects.

•

Score of 4 or better on ten aspects, including at least: two economic, two social, and two environmental aspects.

Advancing sustainable hydropower Sustainability Guidelines

Compliance Protocol

Blue Planet Prize

Sustainable Hydro Website

Certification

Sustainable Hydropower Website Showcasing good practice

Sustainable Hydropower Website

Sustainable Hydropower Website

With identification and sound management of social issues, hydropower schemes have the capacity to significantly reduce poverty and enhance the quality of life in the communities they serve. The challenge is to ensure that all individuals and communities affected by a hydropower development benefit in areas such as with improved living conditions, public health facilities, equitable distribution of benefits, social compensation measures. New developments require comprehensive social impact assessment, genuine community engagement, public acceptance, and monitoring of outcomes. The interlinkages with environmental and economic aspects of sustainable hydropower must be well understood.

Click on this area to learn more about specific social sustainability issues

Communities or individuals who are affected by a project, and subject to displacement, should be adequately compensated and their rights need to be communicated and options for resettlement negotiate during the process of project development.

How to get involved?

•

Copies of the Guidelines and Compliance Protocol are available at: www.hydropower.org

•

Further details of the website initiative can be obtained from: sustainable.hydropower@hydro.com.au

•

Organisations wishing to trial the Compliance Protocol or contribute ideas on the Certification proposal should contact: iha@hydropower.org or andrew.scanlon@hydropower.com.au

What’s Next?

•

Further trials / workshops of the compliance protocol are needed

•

The IHA needs partners to assist in the development and funding of the certification process and best practice website

•

A Certification Governing Body and a process to administer the website need to be established.

Partner Associations?

Nepal Hydropower Association

International Renewable Energy Alliance

Potential Partners UN / Facilitators?

Potential Partners Conservation Organizations

Potential Partners Financing Organizations

Potential Partners Governments

Stockholm Workshop with potential partners to present reviews and comparisons with other guidelines and criteria.

Workshop to take place on Saturday 20 August (14.00 to 18.00)