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MINI -HYDROPOWER

MINI -HYDROPOWER. Climate friendly but not devoid of environmental and social risk. Introduction. Environmental Issues . Social Issues. Land and water use conflicts and associated physical and/or economic displacement; Community health and safety; Cultural heritage loss;

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MINI -HYDROPOWER

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  1. MINI -HYDROPOWER Climate friendly but not devoid of environmental and social risk

  2. Introduction

  3. Environmental Issues Social Issues Land and water use conflicts and associated physical and/or economic displacement; Community health and safety; Cultural heritage loss; Occupational health and safety; Labour and working conditions; Community acceptance. • Conversion of aquatic and terrestrial habitats; • Changes in in-stream flows, including water, sediment and aquatic biota flows and impact on ecosystem services to local communities; • Connectivity and fish entrainment; • Stream morphology and sediment management; • Watershed management aspects; • General pollution prevention and control and reservoir management, which covers water quality and reservoir erosion, slope stability and sedimentation. • Climate change risk and more extreme weather events.

  4. The three projects

  5. E&S risk assessment All three projects had received approvals from the Central Environmental Authority (CEA) and the Sustainable Energy Authority (SEA) However, not every bank had E&S risk assessment processes in place to check that the regulatory approvals had considered all potential E&S risks

  6. THE THREE Approaches

  7. Project A • Soon after commencement the area received unexpected high rainfall. • The village upstream of the weir flooded & water levels took longer to recede than previously experienced. • Community protested both in response to this event but also over other issues that the developer had ignored. • Protests triggered intervention of the authorities and it was discovered that the weir wall had been constructed to a height higher than the one approved. • Commercial operations were stopped. No power generation, no revenues, project proponent defaulted.

  8. Project B This project is facing two cases filed by a group of environmentalists challenging the approvals granted by government authorities. The group claims that the site is located inside the Sinharaja Forest Buffer Zone and not outside it. Until the court case is resolved construction is on hold and plant commissioning has been delayed. As no revenue is being generated the project proponent is unable to service the monthly installments now due.

  9. Project C • This project has also hit the media headlines. • Interested and affected parties are fiercely protesting the development raising several concerns over the project’s impact on a site of cultural heritage, local livelihoods, aquatic biodiversity and water availability. • The bank’s E&S risk assessment systems and access to new networks of sources of advice has probably protected it from the credit risks experienced by the other banks.

  10. Reflections • Mini-hydropower can make a positive contribution to a country’s power supply and mix. • However they do have other significant E&S impacts. • A bank’s E&S risk assessment system is there to ensure that the E&S risk of client’s operation is understood, particularly the sensitivities associated with its location. • Government approvals are not a guarantee that all potential E&S risk have been identified and adequately addressed. • Stakeholder engagement is critical for deepening an understanding of these potential E&S risks.

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