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.

1. Sustainability Tools in
Hydropower Dev’t & Operations
www.snpower.com
RODOLFO AZANZA JR.
Country Representative & Business
Development Manager, SEA
21 November 2013
Melia Hotel, Hanoi, Vietnam

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
www.snpower.com
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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
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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.”
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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
www.snpower.com
03/05/2010
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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
www.snpower.com
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7. Examples of No Gaps
www.snpower.com
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8. Examples of Gaps
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10. 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…
www.snpower.com
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11. 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
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12. 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
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13. 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”.
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