Sustainability tools in hydropower development & operations


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3rd Mekong Forum on Water, Food & Energy. Presentation from Session 19: Advancing Sustainability in the Mekong Region: the role of Assessment Tools, Standards and Safeguards.

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  • Sustainability tools in hydropower development & operations

    1. 1. Sustainability Tools in Hydropower Dev’t & Operations RODOLFO AZANZA JR. Country Representative & Business Development Manager, SEA 21 November 2013 Melia Hotel, Hanoi, Vietnam
    2. 2. SN Power Key Facts - Established June 2002 in Norway - Owned by Statkraft (60%) & Norfund (40%) - Business objective: Invest in clean, renewable energy on commercial basis in selected emerging markets • • • Net installed capacity 2013: 1,358 MW 523 employees in twelve countries CDM projected credit volume: ~ 2 Mt/CO2 per year In the Philippines - 50:50 JV company SN Aboitiz Power (SNAP)  Ambuklao: 105 MW /207 GWh  Binga: 134 MW / 419 GWh  Magat: 360 MW / 940 GWh Page 2
    3. 3. SN Power Company Structure South America Asia Agua Imara (51%) Peru Nepal Zambia Chile India Panama* Brazil Sri Lanka Costa Rica* Philippines Mozambique* Vietnam (2010)* Singapore* * Countries without power generation Page 3
    4. 4. SN Power’s Competitive Advantage – Long-term investment strategy – Technical and financial strength; long Norwegian hydropower tradition (100+ years) – Understanding of power markets – Demonstrated ability to sustainably execute projects in difficult markets  Ability to manage environment, legal and social issues “WHAT YOU DO NOT UNDERSTAND, YOU CANNOT MANAGE.” Page 4
    5. 5. Framework Sustainability tools as our global standards Requirements Area of good night sleep Area of Sustainability Public Expectations ? Area of living in the edge Regulation Area of Risk Area of vacation in prison Time 03/05/2010 Page 5
    6. 6. Our Sustainability Toolbox SN Power CSER Group Policy mandates adherence to principles in the: – Global Compact – IFC E&S Performance Standards – IHA’s HSAP Mapped out gaps between National Requirements VS IFC’s PS Legal compliance alone will not assure sustainability because of these gaps Page 6
    7. 7. Examples of No Gaps Page 7
    8. 8. Examples of Gaps Page 8
    9. 9. Why use these tools IFC’s E&S PS - Extensive easy-to-understand Guidance Notes - Available documents in IFC website for comparing with your project (managing the learning curve) - If borrowing from IFC…  IHA’s HSAP - Self assessment, numbers & proof-based - Track your performance through the years - Spider web shows how holistic are you, exposes weak areas… Page 10
    10. 10. These tools work!  CDM Registered under the UNFCCC Passed very stringent scrutiny of both the Philippine DNA & the UN CDM System easily due to prior conformity with these sustainability assessment tools Name Country MW tCO2 per year Ambuklao Philippines 105 160,000 Binga Philippines 134 20,000 Page 11
    11. 11. These tools work!  Cooperation with downstream users of water for irrigation and fish ponds.  Zero environmental non-compliance since turnover to present  Celebrated best practice case of building consensus with Indigenous Peoples in Ambuklao and Binga (resolving a 50-year land dispute issue)  Good relations with host LGUs/IP communities Page 12
    12. 12. Key Messages 1. Stakeholders expect hydro projects to be sustainable 2. Compliance to law is not enough 3. There are sustainability tools:  To design good hydro projects  Basis to reject incorrigibly bad hydro projects  To operate hydro plants in the “area of good night sleep”. Page 13