Michael Fink and Helen Locher, IHA

Brussels

12 February 2009

Overview of the Hydropower Sector and Pathways towards Sustainability

Fossil Fuels; 65,10%

Hydropower,16.48%

Biomass; 1,10%

Geothermal; 0,28%

Wind; 1,76%

Solar; 0,18%

Nuclear; 15,90%

Power Generation by Type

(17,530 GWh in 2005)

0,00

2.000,00

4.000,00

6.000,00

8.000,00

10.000,00

12.000,00

14.000,00

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

THw

GEOTHERMAL, SOLAR, WIND, BIOMASS

FOSSIL FUELS

HYDROPOWERNUCLEAR

World Growth in

Electricity Generation

by Type (1980-2006)

Source: IEA 2008

Status of Hydropower Globally

North America

23%

Central and South America

21%

Europe19%

Eurasia8%

Middle East1%

Africa3%

Asia and Oceania

25%

Belgium0%

Finland2%

France9%

Germany4%

Italy6%

Netherlands0%

Norway25%

Romania4%

Spain4%

Sweden13%

Switzerland6%

Turkey7%

United Kingdom1%

Rest of Europe19%

World: 2,894 TWh in 2005 Europe: 539.6 TWh in 2005

Source: IEA 2008

Hydropower Generation by Region

World’s realistic potential developed: ~ 1/3

Current hydro production: 2889 TWh/y

Realistic potential production: ~ 8600 TWh/y

69%

33%7%

75%

22%

~70%

Source: World Atlas of Hydropower & Dams, 2002

Hydropower Potential by Region

Source: IEA 2008

Hydropower within the European Electricity Portfolio

0,00

200,00

400,00

600,00

800,00

1.000,00

1.200,00

1.400,00

1.600,00

1.800,00

2.000,00

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

THw

FOSSIL FUELS

NUCLEAR

HYDROPOWER

GEOTHERMAL, SOLAR, WIND, BIOMASS

Norway 98.2

Iceland 72.0

Austria 54.5

Switzerland 54.0

Sweden 44.4

Romania 25.3

Portugal 19.3

Finland 17.3

Slovakia 16.3

Italy 12.4

France 11.2

Spain 10.2

Bulfaria 8.3

Lithuania 6.8

Greece 4.9

Germany 4.3

Republic of Ireland 4.2

Czech Republic 2.8

Belgium & Luxemburg 2.6

United Kingdom 2.4

Poland 1.9

Hungary 0.5

Netherlands 0.1Source: EdF

Percent Hydro Share of National

Electricity Generation (2007)

6

• Largest scale renewable energy source

• Proven technology, long life span, low operating costs

• High energy efficiency rate

• Fosters energy and water security

• Opportunities for development benefits and meeting development needs

• Improves electricity grid stability and reliability

• Can work in tandem with more intermittent renewables (wind , wave, tidal, solar) thus encouraging growth of these sources

Why Invest in Hydropower?

• Increasingly compelling case for hydropower to displace fossil fuel development

• Careful assessment required of water resource availability

• Climate change is likely to alter river discharge, providing some regions with more water, and others with less

• IPCC recently published a study1, which cites some country examples and perspectives: – By the 2070s the electricity production potential of hydropower plants

will increase by 15-30% in Scandinavia and Northern Russia.

– Decreases of 20-50% and more are found for Portugal, Spain and Portugal

• Multi-purpose systems provide an opportunity for drought protection and flood mitigation as well as water provision for irrigation and recreation.

1 Bates et al (2008) Climate Change and Water. Technical Paper of the IPCC.

Climate Change Considerations

Offers benefits of

poverty alleviation,

greenhouse reduction,

flexibility & reliability,

multiple uses, water supply.

The challenge is to ensure sustainably developed and

managed projects

Potentially adverse impacts including population displacement and environmental change. High up front costs, long lead times for planning, permitting and construction.

Hydropower and the Sustainable Development Challenge

9

What are the Secrets to‘Good Dams’ versus ‘Bad Dams’?

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2012

IEA Implementing Agreement

for Hydropower

World Commission on Dams

UNEP Dams and Development Project Phase 2

IHA Sustainability Guidelines

IHA Sustainability Assessment Protocol

Hydropower Sustainability Assessment Forum

Sustainable Hydropower Website

IHA Blue Planet Prize

Eugene Green Energy Standard (Europe-based)

Low Impact Hydropower Institute (North America)

CHOICE Project for green hydropower (Europe)

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2012

2011

2011

2008

2008

2010

2010

Phase 1 Phase 2

Phase 1

Timeline of Initiatives

The Hydropower Sustainability Assessment Forum

• The Hydropower Sustainability Assessment Forum (HSAF) is a collaboration of representatives from different sectors who aim to develop a broadly endorsed sustainability assessment tool to measure and guide performance in the hydropower sector.

• The Forum members are jointly reviewing and recommending enhancements to the IHA Sustainability Assessment Protocol (2006).

• The Protocol was developed as a measuring tool to assess social, environmental and economic performance of hydropower projects and operating facilities against criteria described in the IHA Sustainability Guidelines (2004).

Developing Countries Dr Yu Xuezhong, Institute of Water Resources and

Hydropower Research, PR China Mr Zhou Shichun, China Hydropower Engineering

Consulting Group Co., PR China Mr Israel Phiri, Manager PPI, Ministry of Energy

and Water Development, Zambia

Developed Countries Mr Geir Hermansen, Senior Advisor, Department

of Energy, Norad, Norway Prof Gudni A Johannesson, Director

General, National Energy Authority, Iceland Ms Kirsten Nyman, Policy Advisor for Sustainable

Hydropower, GTZ, Germany (observer)

Hydropower Sector Dr Refaat Abdel-Malek, President, International

Hydropower Association Mr Andrew Scanlon, Coordinating Author, IHA

Sustainability Assessment Protocol

NGOs - Environmental Aspects Mr David Harrison, Senior Advisor, Global

Freshwater Team, The Nature Conservancy Dr Joerg Hartmann, Lead, Dams

Initiative, World Wildlife Fund

NGOs - Social Aspects Mr Michael Simon, Lead, Development

Banks/NRM, Oxfam Dr Donal O’Leary, Water Sector

Specialist, Transparency International

Finance Sector - Economic Aspects Ms Courtney Lowrance, Environmental

Specialist, Equator Principles Financial Institutions Group

Ms Daryl Fields, Senior Water Resources Specialist, World Bank (observer)

Forum Chair Mr André Abadie, Sustainable Finance Ltd.

The members of the Hydropower Sustainability Assessment Forum comprise representatives of developed and developing countries, environmental and social NGOs, commercial and development banks and the hydropower sector, with membership guided by the common efforts of IHA, WWF and TNC.

Forum Membership

Michael Fink and Helen Locher, IHA

Brussels

12 February 2009

For more information on the Hydropower Sustainability Assessment Forum, see

www.hydropower.org