Take away message• Founded in 1965 and owned by the Icelandic state.• One of 10th largest producers of renewable energy in Europe.• Generates electricity from: › Hydro power sources - 96% › Geothermal power sources - 4%• Leading the way in research and development on renewable energy in Iceland.
Landsvirkjun 12.5 TW/h generated in 2011 Dominant electricity generator in Iceland with a 73% market share 82% of sales to power intensive industries Sound financial position and a reliable customer base All major projects have been successfully completed 235 employees
Landsvirkjun’s energy production Laxá 28 MW Krafla 60 MW Bjarnarflag 3 MW Blanda 150 MW Fljótsdalur 690 MW Hrauneyjafoss 210 MW Sultartangi 120 MW Vatnsfell 90 MW Sigalda 150 MW Sog 90 MW Búrfell 270 MW Hydro power plant Geothermal power plant Transmission line
The Hydropower Sustainability Assessment Protocol
Why a Sustainability Protocol for HydropowerProjects? 8
The Hydropower Sustainability Assessment Protocol• The Protocol was officially launched in June 2011.• The Protocol is developed by a multi-stakeholder forum/body with representatives from: • Social and environmental NGOs (Oxfam, The Nature Conservancy, Transparency International, WWF); • Governments (China, Germany, Iceland, Norway, Zambia); • Commercial and development banks (Equator Principles Financial Institutions Group, The World Bank); • The hydropower sector, represented by IHA.
The Hydropower Sustainability Assessment Protocol• The Protocol is governed by a multi-stakeholder council and managed by the IHA.• The Implementation of the Protocol is made possible by the assistance of EC Life + Programme.• The Protocol is an enhanced sustainability assessment tool used to measure and guide performance in the hydropower sector. 10
The Hydropower Sustainability Assessment Protocol• Is a framework for assessing the sustainability of hydropower projects.• Divides hydropower sustainability into more than 20 clearly-defined topics.• Provides a consistent, globally-applicable methodology.
The Intergovernmental Panel on Climate Changes(IPCC)
The Protocol’s StructureThe Protocol comprises five documents: 1. The background documentFour assessment tools for the different stages of the projectslife cycle: 2. Early Stage 3. Preparation Stage 4. Implementation Stage 5. Operation Stage 13
How is the Protocol assessed?An independent team of accredited assessors: • Analyse all documentation • Visit the site • Conduct numerous interviews with various stakeholders • Score each topic according to their findings How are these issues analysed?
Scoring Criteria of Each Topic and Scoring How suitable, adequate and effective is the: Assessment Management Stakeholder Engagement Outcome Conformance/Compliance Each topic is scored form level 1 to 5 Basic good practice = 3 Proven best practice = 5 16
Implementation of the Assessment for the Hvammur Project
Landsvirkjun’s objectives for the assessmentof the Hvammur Project? To identify how appropriate the Protocol is for Landsvirkjun and Iceland. To benchmark Landsvirkjun to international companies. To estimate the sustainability of the project. To find improvement opportunities in the project and its preparation. To ensure transparency of the project and engagement of stakeholders. 19
The Assessment Process for the Hvammur Project The assessment took place in May, 2012. About two months of preparation – (single point of contact + local team) Team of six assessors (3 assessors and 3 trainees). The assessment took one week (> 60 hours). More than 50 individuals were interviewed. The final report from the assessment team was published in October, 2012. 21
List of IntervieweesNAME COMPANY/ORGANIZATIONNjörður Geirdal Hvammur Ragnheiður Ólafssdóttir LandsvirkjunGunnsteinn R. Ómarsson Rangárþing ytra Municipality Magnús Þór Gylfason LandsvirkjunÁsgeir Jónsson Steinsholt sf. Jakob Gunnarsson Planning Agency Náttúruverndarsamtök Suðurlands (NGO - Masterplan for energy and natural conversation Environmental Organization for the south part of Svanfríður I. Jónasdóttir (Rammaáætlun.is)Ingibjörg Elsa Björnsdóttir Iceland) Masterplan for energy and natural conversation Sól á Suðurlandi (NGO-Local Environmental Sveinbjörn Björnsson (Rammaáætlun.is)Guðfinnur Jakobsson Organization) Guðni Jóhannesson National Energy AuthorityMagnús Jóhannsson Institute of Freshwater Fisheries Úlfar Linnet LandsvirkjunSigurður Guðjónsson Institute of Freshwater Fisheries Kristján M. Sigurjónsson Verkís consulting engineersHelgi Jóhannesson Landsvirkjun Jón Sveinsson LandsvirkjunEinar M. Júlíusson Mannvit consulting engineers Ísleifur Tómasson Electricians Union of Iceland (RSÍ)Sveinn Kári Valdimarsson Landsvirkjun Kristján Þórður Snæbjarnarson Electricians Union of Iceland (RSÍ)Oddur Bjarnason Thjórsá Angling Club Halldór Grönvöld Icelandic Labour UnionKristófer Tómasson Skeiða- og Gnúpverjahreppur Municipality Pétur Pétursson LandsvirkjunHermann Sigurðsson Ístak - Búðarháls Kristján Gunnarsson LandsvirkjunPáll Eggertsson Ístak - Búðarháls Ragna Árnadóttir LandsvirkjunSveinn Fjeldsted Ístak - Búðarháls Hörn Hrafnsdóttir Verkís consulting engineersÁsborg Arnþórsdóttir Tourist Association west of Thjórsá Edvard Guðnason LandsvirkjunKristinn Eiríksson Landsvirkjun Stella Marta Jónsdóttir LandsvirkjunKristján Kristinsson Landsvirkjun Former Employee of Almenna VerkfræðistofanJóhann Þórsson Soil Conservation Service of Iceland Sigmundur Einarsson consultancy/Icelandic Institute of Natural HistoryHelgi Bjarnason Landsvirkjun Einar Mathiesen LandsvirkjunSigurður H. Magnússon Icelandic Institute of Natural History Rögnvaldur Ólafsson Civil Protection in IcelandGuðmundur Ingi Guðbrandsson Landvernd, Icelandic Environment Association (NGO) Jórunn Harðardóttir Icaland Meterological Office Landvernd, Icelandic Environmental Association Árni Snorrason Iceland Meterological OfficeHelga Ögmundardóttir (NGO) Eggert Guðjónsson LandsvirkjunKristinn Magnússon The Archaeological Heritage Agency of Iceland Kristján Skarphéðinsson Minister of IndustryBjarni F. Einarsson The Archaeological Office Guðlaugur Þórarinsson LandsvirkjunOrri Vigfússon North Atlantic Salmon Fund Euler Hermes and Exportkreditgarantien derHelgi Jensson The Environment Agency of Iceland Pablo von Waldenfels Bundesrepublik DeutschlandÓlafur A. Jónsson The Environment Agency of Iceland Andreas Hutzler Voith/Euler - Export CreditsDóra Hjálmarsdóttir Verkís consulting engineers Ármann Jónsson LandsvirkjunGuðmundur S. Pétursson Landsvirkjun 22
Results for the Hvammur Project The assessment covered 21 out of 23 possible topics: For 12 topics the project met a score of 5; Proven best practice. For 4 topics the project met a score of 4; One gap from best proven practice. For 4 topics the project met a score of 3; Basic good practice. For 1 topic the project met a score of 2; One gap form basic good practice. Each topic is scored form level 1 to 5: Basic good practice = 3 Proven best practice = 5
The Results for HvammurConfirmed that the project hadbeen successfully implemented;especially for:• Technical- and economical preparation - Topics based on hydropower knowhow.• Public Health and topics based on the Nordic Welfare System.• Labour & working Conditions and topics based on certification e.g. ISO-14001, IS0-9001 and OHSAS 18001.
Confirmed low scores on issues that havebeen problematic:Communication & Consultation: • Absence of a planned approach to communications, which would establish a foundation for good stakeholder relations throughout the project lifetime. • Poses a significant risk to the project and Landsvirkjun.Brought an awareness of a varietyof factors not considered before; For instance, the importance of the effects of invasive species, etc.
Landsvirkjun’s experience of the Protocol• It is comprehensive and sensitive to the issues unique to each site and location.• It is an evaluation that seeks out the perspective of all parties involved directly or indirectly, ensuring equality at every level.
Landsvirkjun’s experience of the Protocol• It insists that those responsible for the project maintain open, effective and constant communication with government institutions as well as the local community and investors.• It creates a strict framework for acceptable working methods and requires the regular re-assessment and updating of project plans and schedules. 30