Offsetting for a hydropower project in Applying the mitigation hierarchy to manage biodiversity risk

Overview  Most hydropower projects are likely to have residual impacts that require offsets to reach international leading practice standards (e.g. IFC PS6).  The Reventazón HPP has pioneered the use of metrics to plan no net loss with the River Offset , setting a best-practice standard for other HPPs in Costa Rica and globally.  This is perhaps the first direct offset of the impacts of a HPP on a river ecosystem, demonstrating that no net loss HPPs are feasible under certain conditions.  However, it is important to highlight that no net loss is much more feasible for certain HPP designs and environmental conditions, e.g.:  Run-of-the-river, rather than storage  Upstream in the watershed, rather than downstream  Downstream of existing HPP Source: world map and inset – Wikipedia.  Base-load energy production rather than peak-load  Small reservoir area The project  Toe of the dam powerhouse, rather than distant with a long dewatered length of river.  Name: Proyecto Hidroeléctrico Reventazón Hydropower Plant (HPP)  Developer: Instituto Costarricense de Elecricidad (ICE)  Location: Reventazón River, medium-sized, flowing into the in Costa Rica  Details: 305 MW - largest renewable energy project in Central America. 130 m dam, flooding of a 6.9 km2 area, creation of an 8 km long artificial lake. Downstream of Angostura HPP  Investment: International Finance Corporation (IFC), Inter-American De- velopment Bank (IADB) and others

View of Reventazon HPP © Olga Puntus/IFC (link)

The challenge  IFC Performance Standard 6 PS6 is for ‘Biodiversity Conservation and Sustainable Management of Living Natural Resources’.  PS6 requires an assessment of Critical -qualifying features and assessment of Natural and Modified Habitat.  PS6 requires net gain of Critical Habitat-qualifying features, and no net loss of Natural Habitat.  Net gain and no net loss are achieved using offsets and additional conservation actions.  Offsets are a measure of last resort to address residual impacts on biodiversity and ecosystem ser- vices, after all other components of the mitigation hierarchy have been fully applied (see right).

The mitigation hierarchy – TBC graphic

Key biodiversity and impacts  The Reventazón River qualifies as Natural Habitat according to IFC PS6.  Potential impacts include: loss of 8 km of flowing river, a barrier effect on migratory fish species entering 38 km of Reventazón River mainstream and tributaries downstream of Angostura HPP; changed hydrology (sedimentation and water quality) in downstream Reventazón River, including Tortuguero National Park.  Offsetting was required to:  Compensate for project impacts on the Sub-Corridor  Ensure no net loss of river Natural Habitat, and  Compensate for impacts on migratory fish species. Reventazon HPP © hydroworld.com (link)

Offsetting for no net loss of Natural Habitat  The Parismina River was identified as equivalent to the Reventazón River (like-for-like). This is an averted loss offset - no HPP will be developed on the Parismina River in the future.  Method 1: ‘quality x length’ metric for structural connectivity.  No net loss is achieved when (in simple terms) water quality with offset actions in the section of the Parismina River that would have been disconnected if a Parismina dam was constructed, is better than the water quality in the section of river than will be disconnected by the Reventazón project.  Method 2: a metric for functional connectivity of the river system, based on the abundance of indicator species.

 No net loss is achieved when with offset actions, species abundance in the relevant sections Rio Parismina (Source: panoramio.com) of the Parismina River is greater than species abundance in the section of river than will be disconnected by the Reventazón project.

Contact Details: [email protected] The Biodiversity Consultancy, 3E King’s Parade, Cambridge, UK, CB2 1SJ Rio Parismina© Panoramio Rio Reventazon © TBC www.thebiodiversityconsulltancy.com