First call for proposals announced with April 2020 application deadline
19 February 2020 – A new sustainability fund launched today will aid hydropower project developers and operators in Africa, Asia, Europe and the Americas to benchmark and raise their social and environmental performance.
The Hydropower Sustainability ESG Assessment Fund will award a total of 1 million Swiss Francs (USD 1.02m) to 40 or more hydropower projects between 2020 and 2024. The initiative is managed by the International Hydropower Association’s sustainability division and funded by Switzerland’s State Secretariat for Economic Affairs (SECO).
Successful recipients will receive a grant to part-finance the cost of commissioning an independent project assessment using the Hydropower Sustainability ESG Gap Analysis Tool (HESG), a tool based on the Hydropower Sustainability Assessment Protocol and governed by a multi-stakeholder coalition of NGOs, governments, banks and multilateral institutions.
The tool enables project proponents and operators to demonstrate that they are meeting international good practice standards across 12 assessment areas including biodiversity, water quality, climate mitigation and resilience, infrastructure safety, labour conditions, indigenous peoples, resettlement, communications and consultation.
The grant will co-finance independent assessors, who are accredited by IHA and a governance council, to carry out an assessment using the HESG gap analysis tool. This involves a site visit and interviews with stakeholders, and produces a concluding report and gap management plan.
Projects under preparation and development, as well as those already in operation, are all eligible for the grant. Applicants will need to demonstrate a strong track record or commitment to sustainability and show that their project aligns with national or regional development policies.
Joao Costa, Senior Sustainability Specialist at IHA, said: “This initiative will encourage renewable energy proponents to draw upon international good practice when planning and implementing hydropower projects. Commissioning a HESG assessment helps to guide developers and operators to address any gaps in environmental and social performance. Going through this process will ultimately demonstrate a project’s sustainability and help unlock green finance.”
Daniel Menebhi, SECO Program Manager, said: “Recognising the important role sustainable hydropower has to play in addressing climate change and enabling economic development, Switzerland supports the Hydropower Sustainability Assessment Protocol and its derivatives, including the HESG gap analysis tool which is the subject of this call.
“Switzerland now funds an extensive capacity development programme in selected countries for Swiss economic development cooperation and we are pleased to co-finance HESG assessments for at least 40 promising hydropower projects over the next four years.”
The first tranche of funding of CHF 250,000 in 2020 will be made available for eligible projects in the following countries: Albania, Bosnia-Herzegovina, Colombia, Egypt, Ghana, Indonesia, Kosovo, Kyrgyz Republic, North Macedonia, Peru, Serbia, South Africa, Tajikistan, Tunisia, Ukraine, Uzbekistan and Vietnam. Project proposals will be accepted up until 19 April 2020.
IHA is the management body for the Hydropower Sustainability Assessment Council, which develops and governs the Hydropower Sustainability Tools, including a set of good practice guidelines, an assessment protocol and a gap analysis tool. The council includes representatives of social, community and environmental organisations, governments, commercial and development banks and the hydropower sector. IHA is responsible for overseeing tools training and accreditation.
Learn about the Hydropower Sustainability ESG Gap Analysis Tool and how to apply to the fund: hydropower.org/esg-tool.
Find out more: www.hydrosustainability.org
6 February 2020, Abidjan, Côte d’Ivoire - Senior African government representatives and leaders from the energy sector, financial institutions and civil society gathered in Abidjan today to chart a course for the sustainable development of the continent’s hydropower resources.
Organised by the International Hydropower Association (IHA) and the African Development Bank (AfDB), the Africa High-level Roundtable on Sustainable Hydropower Development looked at strategies for ensuring projects are developed in accordance with international good practice, while overcoming challenges to development and access to finance.
With close to 600 million Africans lacking access to electricity, speakers including Hon Fortune Chasi, Zimbabwe’s Minister of Energy, and Sabati Cissé, Côte d’Ivoire’s Director-General for Petroleum, Energy and Renewable Energies, emphasised the social-economic and power system benefits of investing in hydroelectricity.
Africa’s existing hydropower plants deliver 36 gigawatts (GW) of installed generation capacity, but this represents only about 11 per cent of the region’s technical potential, according to IHA (Hydropower Status Report 2019).
“As a renewable energy source offering design options from run-of-river plants to pumped storage plants, hydropower in its different forms adds significant value to power systems and the reliability of energy supply,” said Wale Shonibare, the African Development Bank’s Acting Vice President for Power Energy, Climate Change and Green Growth.
Mr Shonibare said the AfDB is committed to supporting new hydropower projects through its New Deal on Energy for Africa and has already invested close to USD 1 billion for 1.4 GW of expected installed capacity over the past ten years.
“As the Bank’s emphasis on renewable energy sources is growing, so does its interest in hydropower. In order to achieve universal access to energy, it is not enough to bring online the amount of generation capacity required to cover energy demand, it is also essential to do this in a sustainable way that assures power system reliability,” he said.
(Pictured: Sabati Cisse, Director General of Energy, Ivory Coast and Hon. Fortune Chasi, Minister of Energy, Zimbabwe)
In his intervention, Minister Chasi noted that Zimbabwe, where more than half of the population does not have electricity access, needs international investment and technical assistance to develop renewable energy sources including hydropower. “We consider hydropower to be essential and critical for our generation of power,” he said.
Mr Cissé noted that Africa’s hydropower plants, through increasing electricity access, contribute significantly to poverty reduction and economic growth. “Africa has enormous hydropower potential, which we will need if we want to achieve national policy priorities and the Sustainable Development Goals.”
Eddie Rich, Chief Executive of IHA, said it was important to create an enabling policy and regulatory environment to incentivise new projects, while ensuring that both greenfield and rehabilitation projects are built and operated in accordance with internationally recognised guidelines and assessment tools.
“The Hydropower Sustainability Tools, governed by a multi-stakeholder coalition of social and environmental NGOs, governments, banks and industry, must be embedded in decision-making on project selection, planning, financing, development and operation. These tools define good and best practice and help to assess whether a hydropower project is truly sustainable across objective social, environmental and governance performance measures,” he said.
The Africa High-level Roundtable on Sustainable Hydropower Development was organised with support from AFD, the French development agency.
About the African Development Bank
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states.
The International Hydropower Association (IHA) is a non-profit organisation working with a network of members and partners to advance sustainable hydropower. Its mission is to build and share knowledge on hydropower’s role in renewable energy systems, responsible freshwater management and climate change solutions. IHA is also the management body for the Hydropower Sustainability Tools and provides training and accreditation for independent project assessors.