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Regulations & policies | A guiding hand


Hydropower development policies in Nepal, environmental assessments in Pakistan, Chinese investment and US small hydro are all featured here, as IWP&DC takes a look at the role of various regulations and policies throughout the industry.


Above: Nepal has only achieved a fraction of its hydropower potential and new research has sought to analyse the effectiveness of its existing Hydropower Development Policy


DESPITE ITS IMMENSE PROMISE, Nepal has only achieved a fraction of its hydropower potential with over 50% of an estimated 83,000MW deemed as being feasible to develop. With the success or failure of power development often dependent upon favourable policy implementation, new research has sought to analyse the efficiency, effectiveness, and feasibility of Nepal’s existing Hydropower Development Policy (HDP) of 2001. Representing 25 different sectors within the Nepalese hydropower industry, participants in the research were from various government departments such as the Ministry of Energy, Water Resources and Irrigation, the Ministry of Forest and Environment, Ministry of Land Management, Cooperatives, and Poverty Alleviation, as well as entities like the Nepal Electricity Authority, investment boards, journalists, and representatives from foreign direct investments. In addition to assessing the adequacy of the HDP


Below: Aerial view of the Itaipu hydroelectric dam on the Paraná River, located between Brazil and Paraguay


for strengthening the power sector, the research also sought to identify policy constraints and obstacles encountered by developers, uncovering new insights for formulating an investment conducive hydropower development policy. While the overall perception of HDP 2001 was deemed as being ‘favourable’, in the past it has been described as being ‘outdated and inadequate’ which hampers its ability to address contemporary challenges. In this recent research undertaken by Pradhan et al and published in The Journal of Shaheed Smarak College, concerns were expressed about differing aspects, such as mechanisms for wheeling charges, inadequate participation from the private sector, and delays in policy amendments. Substantial obstacles related to land acquisition, environmental evaluations, and policy execution were also highlighted,


underscoring the need for prompt revisions to accommodate evolving socio-economic and environmental factors. In conclusion, the researchers stated that while the HDP 2001 was generally perceived as being investment-friendly, addressing the identified challenges and revising policies in line with current realities will be essential to enable sustainable hydropower development in Nepal, thus allowing the country to harness its renewable energy potential.


EIA assessment


Investigating the structural limits of Environmental Impact Assessment (EIA) guidelines for hydropower development in Pakistan has also been the focus of another study undertaken by Qayyuum Butt et al, and published in Frontiers in Environmental Science. Although an adequate mechanism is available, and donors like the Asian Development Bank and World Bank observe the implementation process of the EIA in Pakistan, the research found that several things that could be improved, not only in the institutional framework but also in the actual implementation and practices. Some respondents suggested that the existing guidelines followed in Pakistan are not aligned with international standards and practices for hydropower, while the EIA has a limited impact on decision-making due to insufficient technical and financial resources.


Complexity


A workshop held at the University of Bologna in Italy, recently focused on exploring the complexity and multifaceted nature of international law relevant to the development and operation of major hydropower infrastructure within shared transboundary basins. Topics covered included transboundary water resource management, environmental protection, climate change mitigation and adaptation, human rights protection, indigenous rights, cultural heritage protection, transnational governance, international investor protection, and international trade. An insight was given into how various human rights frameworks such as the human right to safe drinking water and indigenous people’s rights, are relevant to hydropower development. Indeed there are various international law tools and mechanisms available, including river basin organisations and judicial bodies, which may help to reconcile tensions when the development of a hydropower project risks affecting the quantity or quality of water provided to local and vulnerable communities, including indigenous people. The binational entity of Itaipu between Brazil and Paraguay was also used as an example to show how riparian states with varying or contrary uses of shared water resources can cooperate in the management


32 | November 2024 | www.waterpowermagazine.com


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