NB/T 10350-2019Guide for Sustainability Assessment of Hydropower Projects (English PDF)

Foreword

This document was issued on 30 December 2019 by the National Energy Administration of the PRC and takes effect on 1 July 2020.

It is a NB/T standard: recommended rather than compulsory, but it is the text a Chinese reviewer applies when assessing a submission.

It is classified under ICS 27.140, Chinese classification P59.

This guide was prepared in accordance with the requirements of the Notice of the General Department of the National Energy Administration on Issuing the 2017 Plan for the Formulation and Revision of Energy Sector Standards and the Plan for Translation and Publication of English Versions (Guo Neng Zong Tong Ke Ji [2017] No. 52). The drafting group carried out extensive investigation and research, summarized practical experience, referred to relevant advanced foreign standards and widely solicited opinions before formulating this guide.

The main technical contents of this guide are: basic requirements, sustainability assessment at the design stage, sustainability assessment at the construction stage, sustainability assessment at the operation stage, and comprehensive analysis and assessment conclusions.

The National Energy Administration is in charge of the administration of this guide. It was proposed by, and is under the routine management of, China Renewable Energy Engineering Institute, which is also responsible for the explanation of its specific technical contents. Opinions and suggestions arising during implementation should be sent to China Renewable Energy Engineering Institute (address: No. 2 Liupukang Beixiaojie, Xicheng District, Beijing, postcode 100120).

Chief development organizations: China Renewable Energy Engineering Institute; Guojia Shuidian Kechixu Fazhan Yanjiu Zhongxin; PowerChina Guiyang Engineering Corporation Limited. Participating development organizations: PowerChina Beijing Engineering Corporation Limited; PowerChina Zhongnan Engineering Corporation Limited; PowerChina Chengdu Engineering Corporation Limited.

1 Scope

NB/T 10350-2019 is the Chinese guide for assessing the sustainability of hydropower projects, including pumped storage plants. It gives developers, owners and reviewers a structured way to judge whether a project is sustainable across its life, rather than relying on a single environmental approval. The guide applies at three stages - planning and design, construction, and operation - and examines each on three dimensions: socio-economic, environmental and management. It sets the general provisions and defined terms, then the principles and procedure of an assessment and the evidence to be collected. The indicator system follows: for each stage and dimension the guide lists the indicators to be assessed, from resettlement, benefit sharing, public participation and cultural heritage, through water quality, ecological flow, fish, biodiversity, sediment and soil conservation, to governance, integrated planning, safety and financial viability. Each indicator is scored on a scale of one to five against defined criteria; the scores are weighted and combined into an overall result out of one hundred, and the project is classed as strongly, moderately or weakly sustainable, or not sustainable. The calculation method, the treatment of missing evidence and the content of the assessment report complete the guide, with appendices giving the indicator lists and scoring criteria.

1.0.1 This guide is formulated to standardize the contents and methods of sustainable hydropower assessment and to unify the technical requirements.

1.0.2 This guide is applicable to the sustainability assessment of hydropower projects at the design, construction and operation stages.

1.0.3 Sustainable hydropower assessment shall be based on national policies, laws and regulations, follow the strategies for ecological and environmental protection and for economic and social development, and observe the assessment principles of independence, objectivity, impartiality and scientific soundness. It shall pay attention to the reasonable demands of stakeholders, systematically assess the sustainability of the hydropower project in socio-economic, environmental and management aspects, and put forward opinions and suggestions for improvement, so as to promote coordinated regional development.

1.0.4 In addition to this guide, sustainable hydropower assessment shall also comply with the provisions of the current relevant national standards.

2 Terms

2.0.1 sustainability of hydropower project: On the basis of technical feasibility, safety and reliability, the continuous improvement of a project during its design, construction and operation in terms of social harmony, environmental friendliness, efficient management and economic rationality, so as to achieve coordination with the regional society, economy and environment and to promote the socio-economic, environmental and management sustainability of the hydropower project.

2.0.2 comprehensive utilization benefit: The benefits of multi-purpose utilization, other than power generation, that a hydropower project delivers according to design requirements, such as flood control, water supply, improvement of the ecological environment, irrigation, navigation, waterlogging control, fisheries, tourism and regulation compensation.

2.0.3 carbon substitution effect: The benefit of reduced greenhouse gas emissions resulting from a hydropower project substituting for the consumption of high-carbon energy sources.

2.0.4 equivalent available factor (EAF): The percentage of unit available time within a given period, taking into account the effect of derating of the hydropower station output.

2.0.5 median: In a set of data arranged in order with an odd number of values, the value located in the middle position; in a set with an even number of values, the arithmetic mean of the two values located in the middle position.

2.0.6 economic benefit of environmental impact: The monetized value of the direct and indirect environmental benefits brought about by the beneficial environmental impacts of a hydropower project.

2.0.7 economic cost of environmental impact: The monetized value of the ecological and environmental costs incurred and of the environmental protection investment made for the adverse environmental impacts of a hydropower project.

2.0.8 environmentally sensitive object: The various natural and cultural protected areas, ecologically sensitive areas, areas of social concern, protected species and their important habitats, water intakes of all kinds, concentrated residential areas and the like that may be affected by a hydropower project.

3 Basic Requirements

3.0.1 The sustainability assessment of a hydropower project shall be carried out by the three stages of design, construction and operation, focusing on the economic feasibility, environmental feasibility and social acceptability of the project as well as its level of project management, and covering the three aspects of socio-economic sustainability, environmental sustainability and management sustainability. The stage to be assessed shall be selected according to the implementation status and needs of the assessment object.

3.0.2 The assessment object shall meet the following basic requirements: (1) there are no constraining factors arising from environmental protection laws and regulations; (2) no major design change has occurred, or a major design change has occurred but complies with the relevant management provisions; (3) no production safety accident or environmental emergency of the major grade or above has occurred, there is no major accident hazard and no mass public security incident has occurred; or such events have occurred but have been handled, rectified and dealt with according to law and meet the relevant requirements.

3.0.3 Sustainable hydropower assessment indicators shall be selected on the principles of being scientific, systematic, representative, easy to quantify and highly operable. The selection of indicators and the determination of weighting coefficients may take into account the following factors: (1) the role in national and regional sustainable economic and social development; (2) the reasonable demands of stakeholders; (3) ecological suitability, safety, reliability and economy; (4) national hydropower industry management requirements, and the current status and development trend of hydropower development; (5) beneficial and adverse impacts.

3.0.4 Sustainable hydropower assessment shall make full use of existing data and results. Where the data cannot meet the assessment requirements, supplementary monitoring and investigation shall be carried out.

3.0.5 The organization undertaking sustainable hydropower assessment shall have assessment personnel with the corresponding professional and technical competence.

3.0.6 The working procedure of sustainable hydropower assessment may be divided into preliminary preparation, field investigation, interviews, itemized assessment, comprehensive assessment, compilation of the assessment report, and confirmation of results.

3.0.7 The sustainability assessment indicators for hydropower stations shall comply with Appendix A of this guide. The sustainability assessment indicators for pumped storage power stations shall comply with Appendix B of this guide.

3.0.8 Sustainable hydropower assessment should adopt quantitative methods. Where quantitative analysis is not possible, analogy or qualitative analysis may be used. The calculation methods for quantitative indicators shall comply with Appendix C of this guide.

3.0.9 Sustainable hydropower assessment shall use single-indicator scoring and comprehensive scoring for quantitative calculation, followed by grading. Single indicators shall be scored on a five-point scale, with a score from 1 to 5 selected according to the level of achievement of the indicator from low to high; the comprehensive score shall use a hundred-point scale.

3.0.10 Sustainable hydropower assessment shall carry out comprehensive analysis and evaluation on the basis of the itemized assessment results, and put forward opinions and suggestions for continuous improvement in respect of the problems identified.

3.0.11 Assessment documents shall be compiled for sustainable hydropower assessment, and the assessment data and results shall be sorted and archived. The table of contents of the sustainability assessment report of a hydropower project should comply with Appendix D of this guide.

4 Sustainability Assessment of Hydropower Projects at Design Stage

4.1.1 At the design stage, the sustainability assessment of a hydropower project shall be carried out in socio-economic, environmental and management aspects on the basis of the design documents of the hydropower project.

4.1.2 The scoring criteria for sustainability assessment indicators of hydropower stations at the design stage shall comply with Appendix E of this guide. The scoring criteria for pumped storage power stations at the design stage shall comply with Appendix F of this guide.

4.2.1 For hydropower stations at the design stage, the quantitative socio-economic indicators shall be calculated as follows: (1) comprehensive utilization benefit according to Clause C.0.1; (2) financial internal rate of return according to Clause C.0.2; (3) regulation compensation benefit according to Clause C.0.3; (4) regional economic contribution rate according to Clause C.0.4; (5) carbon substitution effect according to Clause C.0.5; (6) resettlement difficulty according to Clause C.0.6 of this guide.

4.2.2 For pumped storage power stations at the design stage, the quantitative socio-economic indicators shall be calculated as follows: (1) capacity benefit according to Clause C.0.7; (2) new energy accommodation effect according to Clause C.0.8; (3) benefit-cost level according to Clause C.0.9; (4) regional economic contribution rate according to Clause C.0.4; (5) resettlement difficulty according to Clause C.0.6 of this guide.

4.2.3 The socio-economic sustainability assessment of a hydropower project at the design stage shall be calculated, on the basis of the indicator-by-indicator calculation and analysis results, by multiplying the indicator scores by the weighting coefficients.

4.3.1 The environmental sustainability indicators of a hydropower project at the design stage should be assessed by qualitative assessment methods.

4.3.2 The environmental sustainability assessment of a hydropower project at the design stage shall be calculated, on the basis of the item-by-item analysis results, by multiplying the indicator scores by the weighting coefficients.

4.4.1 The management sustainability indicators of a hydropower project at the design stage should be assessed by qualitative assessment methods.

4.4.2 The management sustainability assessment of a hydropower project at the design stage shall be calculated, on the basis of the item-by-item analysis results, by multiplying the indicator scores by the weighting coefficients.

5 Sustainability Assessment of Hydropower Projects at Construction Stage

5.1.1 At the construction stage, the sustainability assessment of a hydropower project shall be carried out in socio-economic, environmental and management aspects on the basis of the design documents and the actual construction of the project.

5.1.2 The scoring criteria for sustainability assessment indicators of hydropower stations at the construction stage shall comply with Appendix G of this guide. The scoring criteria for pumped storage power stations at the construction stage shall comply with Appendix H of this guide.

5.2.1 For hydropower projects at the construction stage, the quantitative socio-economic indicators shall be calculated as follows: (1) investment-driven contribution rate according to Clause C.0.10; (2) resettlement progress completion ratio according to Clause C.0.11 of this guide.

5.2.2 The socio-economic sustainability assessment of a hydropower project at the construction stage shall be calculated, on the basis of the indicator-by-indicator calculation and analysis results, by multiplying the indicator scores by the weighting coefficients.

5.3.1 The environmental sustainability indicators of a hydropower project at the construction stage should be assessed by qualitative assessment methods.

5.3.2 The environmental sustainability assessment of a hydropower project at the construction stage shall be calculated, on the basis of the analysis results, by multiplying the indicator scores by the weighting coefficients.

5.4.1 The management sustainability indicators of a hydropower project at the construction stage should be assessed by qualitative assessment methods.

5.4.2 The management sustainability assessment of a hydropower project at the construction stage shall be calculated, on the basis of the analysis results, by multiplying the indicator scores by the weighting coefficients.

6 Sustainability Assessment of Hydropower Projects at Operation Stage

6.1.1 At the operation stage, the sustainability assessment of a hydropower project shall be carried out in socio-economic, environmental and management aspects on the basis of the design documents and the construction and operation of the project.

6.1.2 The scoring criteria for sustainability assessment indicators of hydropower stations at the operation stage shall comply with Appendix J of this guide. The scoring criteria for pumped storage power stations at the operation stage shall comply with Appendix K of this guide.

6.2.1 For hydropower stations at the operation stage, the quantitative socio-economic indicators shall be calculated as follows: (1) comprehensive utilization benefit according to Clause C.0.1; (2) return on total assets according to Clause C.0.12; (3) asset-liability ratio according to Clause C.0.13; (4) regulation compensation benefit according to Clause C.0.3; (5) regional economic contribution rate according to Clause C.0.4; (6) carbon substitution effect according to Clause C.0.5; (7) development balance index according to Clause C.0.14; (8) social integration index according to Clause C.0.15; (9) regional development index according to Clause C.0.16 of this guide.

6.2.2 For pumped storage power stations at the operation stage, the quantitative socio-economic indicators shall be calculated as follows: (1) ancillary service value according to Clause C.0.17; (2) new energy accommodation effect according to Clause C.0.8; (3) return on total assets according to Clause C.0.12; (4) asset-liability ratio according to Clause C.0.13; (5) regional economic contribution rate according to Clause C.0.4; (6) development balance index according to Clause C.0.14; (7) social integration index according to Clause C.0.15; (8) regional development index according to Clause C.0.16 of this guide.

6.2.3 The socio-economic sustainability assessment of a hydropower project at the operation stage shall be calculated, on the basis of the indicator-by-indicator calculation and analysis results, by multiplying the indicator scores by the weighting coefficients.

6.3.1 For hydropower stations at the operation stage, the quantitative environmental indicators shall be calculated as follows: (1) ecological flow satisfaction degree according to Clause C.0.18; (2) water quality change degree according to Clause C.0.19; (3) eutrophication of the water body according to Clause C.0.20; (4) fish retention index according to Clause C.0.21; (5) benthic invertebrate integrity index according to Clause C.0.22; (6) plankton integrity index according to Clause C.0.23; (7) vegetation cover change according to Clause C.0.24 of this guide.

6.3.2 For pumped storage power stations at the operation stage, the quantitative environmental indicators shall be calculated as follows: (1) ecological flow satisfaction degree according to Clause C.0.18; (2) water quality change degree according to Clause C.0.19; (3) vegetation cover change according to Clause C.0.24 of this guide.

6.3.3 The environmental sustainability assessment of a hydropower project at the operation stage shall be calculated, on the basis of the indicator-by-indicator calculation and analysis results, by multiplying the indicator scores by the weighting coefficients.

6.4.1 For hydropower stations at the operation stage, the quantitative management indicators shall be calculated as follows: (1) equivalent available factor according to Clause C.0.25; (2) effective water energy utilization rate according to Clause C.0.26 of this guide.

6.4.2 For pumped storage power stations at the operation stage, the quantitative management indicators shall be calculated as follows: (1) equivalent available factor according to Clause C.0.25; (2) unplanned outage rate according to Clause C.0.27; (3) start-up reliability according to Clause C.0.28 of this guide.

6.4.3 The management sustainability assessment of a hydropower project at the operation stage shall be calculated, on the basis of the indicator-by-indicator calculation and analysis results, by multiplying the indicator scores by the weighting coefficients.

7 Comprehensive Analysis and Assessment Conclusions

7.1.1 The sustainability assessment of a hydropower project shall carry out comprehensive analysis and evaluation by the three stages of design, construction and operation, on the basis of the itemized assessment results for the socio-economic, environmental and management aspects.

7.1.2 The comprehensive analysis shall, on the basis of the socio-economic, environmental and management itemized assessments, use the weighted calculation method for comprehensive scoring indicators to derive the comprehensive score, which shall comply with Appendix L of this guide.

7.1.3 Sustainable hydropower assessment shall be graded according to the comprehensive score into four grades: strongly sustainable for a score of 85 or more; moderately sustainable for a score less than 85 and not less than 75; weakly sustainable for a score less than 75 and not less than 60; and unsustainable for a score less than 60.

7.1.4 An overall evaluation shall be made on the basis of the comprehensive score, analysing the problems of the hydropower project in the socio-economic, environmental and management aspects, with emphasis on the reasons for the higher and lower indicator scores.

7.2.1 The assessment conclusion shall be stated clearly on the basis of the grade determination and the results of the overall evaluation.

7.2.2 The assessment conclusion shall put forward opinions and suggestions for improvement to the relevant parties in respect of the problems found in the sustainability assessment of the hydropower project.

A Indicators of Sustainability Assessment for Hydropower Stations

Design stage, socio-economic objective: project benefit (comprehensive utilization benefit); financial viability (financial internal rate of return); regulation benefit (regulation compensation benefit); regional economic contribution (regional economic contribution rate); emission reduction benefit (carbon substitution effect); social stability (social stability risk); resettlement (resettlement difficulty).

Design stage, environmental objective: overall environmental impact (economic gain and loss of environmental impact); degree of environmental sensitivity (environmental sensitivity); environmental protection countermeasures (design of environmental protection and soil and water conservation).

Design stage, management objective: policy and planning legality (legality of preliminary work and project design); project management (project management capability; identification and control of major issues affecting the project); safety management (identification and control of hazardous and harmful factors threatening the safety and health of workers).

Construction stage, socio-economic objective: construction cost control (project investment deviation); regional economic contribution (investment-driven contribution rate); social stability (occurrence of mass public security incidents); resettlement (resettlement progress completion ratio; conformity with resettlement planning objectives).

Construction stage, environmental objective: environmental protection countermeasures, assessed through the implementation status of construction environmental protection and soil and water conservation measures, the effectiveness of their implementation, and the supervision and monitoring of these measures.

Construction stage, management objective: progress management (construction and commissioning according to plan); safety management (safe production; geological hazard risk prevention and control); quality management (quality control).

Operation stage, socio-economic objective: project benefit (comprehensive utilization benefit); financial viability (return on total assets; asset-liability ratio); regulation benefit (regulation compensation benefit); regional economic contribution (regional economic contribution rate); emission reduction benefit (carbon substitution effect); subsequent development (development balance index; social integration index; regional development index).

Operation stage, environmental objective: hydrological regime (ecological flow satisfaction degree); water environment (water quality change degree; eutrophication of water body); aquatic ecology (impact on protected aquatic organisms and their habitats; fish retention index; benthic invertebrate or plankton integrity index); terrestrial ecology (impact on protected terrestrial organisms and their habitats; vegetation cover change); environmental protection countermeasures (operation and effectiveness of environmental protection measures).

Operation stage, management objective: operation management (equivalent available factor; effective water energy utilization rate; optimized dispatching; management of major issues affecting the project); safety management (safe production; geological hazard risk prevention and control; dam safety).

B Indicators of Sustainability Assessment for Pumped Storage Power Stations

Design stage, socio-economic objective: dynamic benefit (dynamic benefit); energy storage benefit (capacity benefit; new energy accommodation effect); financial viability (benefit-cost level); regional economic contribution (regional economic contribution rate); social stability (social stability risk); resettlement (resettlement difficulty); coordination of social functions (coordination of reservoir functions).

Design stage, environmental objective: overall environmental impact (economic gain and loss of environmental impact); degree of environmental sensitivity (environmental sensitivity); environmental protection countermeasures (design of environmental protection and soil and water conservation).

Design stage, management objective: policy and planning legality (legality of preliminary work and project design); project management (project management capability); safety management (identification and control of hazardous and harmful factors threatening the safety and health of workers).

Construction stage, socio-economic objective: construction cost control (project investment deviation); regional economic contribution (investment-driven contribution rate); social stability (occurrence of mass public security incidents); resettlement (resettlement progress completion ratio; conformity with resettlement planning objectives).

Construction stage, environmental objective: environmental protection countermeasures, assessed through the implementation status of construction environmental protection and soil and water conservation measures, the effectiveness of their implementation, and the supervision and monitoring of these measures.

Construction stage, management objective: progress management (construction and commissioning according to plan); safety management (safe production; geological hazard risk prevention and control); quality management (quality control).

Operation stage, socio-economic objective: power grid benefit (ancillary service value); energy storage benefit (new energy accommodation effect); financial viability (return on total assets; asset-liability ratio); regional economic contribution (regional economic contribution rate); subsequent development (development balance index; social integration index; regional development index).

Operation stage, environmental objective: hydrological regime (ecological flow satisfaction degree); water environment (water quality change degree); terrestrial ecology (vegetation cover change); environmental protection countermeasures (operation and effectiveness of environmental protection measures).

Operation stage, management objective: equipment management (equivalent available factor; unplanned outage rate; start-up reliability; comprehensive cycle efficiency); safety management (safe production; geological hazard risk prevention and control; dam safety).

C Quantitative Methods for Indicators of Sustainable Hydropower Assessment

C.0.1 The comprehensive utilization benefit shall be assessed as the ratio of the comprehensive utilization benefit per kW of installed capacity of the hydropower station to the median value of that benefit per kW of installed capacity in the hydropower industry, calculated as R = S / H x 100%, where R is the comprehensive utilization benefit; S is the comprehensive utilization benefit per kW of installed capacity of the station (10 000 yuan/kW); and H is the median comprehensive utilization benefit per kW of installed capacity of the hydropower industry in the assessment period (10 000 yuan/kW).

C.0.2 The financial internal rate of return shall be assessed using the financial internal rate of return of the hydropower project investment, calculated from the sum over i = 1 to n of (CI - CO)i x (1 + FIRR)^(-i) = 0, where FIRR is the financial internal rate of return; CI is the cash inflow (10 000 yuan); CO is the cash outflow (10 000 yuan); and n is the assessment period.

C.0.3 The regulation compensation benefit shall be assessed as the ratio of the increase in capacity and energy benefits of the downstream cascade stations resulting from regulation compensation by the reservoir of this station to the capacity and energy benefits of this station, calculated as A = TB / Sa x 100%, where A is the regulation compensation benefit; TB is the increase in capacity and energy benefits of the downstream cascade stations due to regulation compensation by the reservoir of this station (10 000 yuan/kW); and Sa is the capacity and energy benefit of this station (10 000 yuan/kW).

C.0.4 The regional economic contribution rate shall be assessed as the percentage of the annual average regional economic contribution of the hydropower project in the assessment period to its total assets, calculated as s = (1/n) x sum over i = 1 to n of (GZ,i / TA,i) x 100%, where s is the regional economic contribution rate; GZ,i is the economic added value of the beneficiary areas generated by the construction or operation of the project in year i of the assessment period (10 000 yuan); TA,i is the total assets of the project in year i of the assessment period (10 000 yuan); and n is the assessment period.

C.0.5 The carbon substitution effect shall be assessed as the ratio of the benefit of reduced greenhouse gas emissions achieved by the energy output of the station substituting for high-carbon energy in the assessment period to the hydropower industry median, calculated as rc = rho / Hc x 100% and rho = (1/n) x sum over i = 1 to n of (Wi / C), where rc is the carbon substitution effect; rho is the carbon emission reduction coefficient per kW of installed capacity of the station (t/kW); Hc is the median carbon emission reduction coefficient of the hydropower industry in the assessment period (t/kW); Wi is the annual coal saving of the station in year i of the assessment period (t); C is the design installed capacity of the station (kW); and n is the assessment period.