Comprehensive Option Assesment - UNEP

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Module 2: Comprehensive Options Assesment Stages Box 11 Building options portfolios and plans: Canadian examples Over a three-year period starting in the late 1980s, Ontario Hydro undertook a multi-year Demand-Supply Review with an extensive public consultation process. At that time, it relied on nuclear generation for close to 70 percent of supply. The process involved the sequential development of a new load forecast for the Province of Ontario and preparation of a series of portfolios for demand management and supply development. The various options were compared within each portfolio, assembled into a series of portfolio plans and the plans were compared. A demand management plan, an infrastructure rehabilitation and management plan, and plans for each major supply optionincluding nuclear, hydro, thermal, co-generation, renewables, inter-fuel substitution, and fuel-switching-were developed. Eventually a proposed Demand/Supply plan and three alternative Demand/Supply Plans were prepared and presented to the government. At each step in the process-options identification, evaluation, and portfolio plan formulation there were extensive public consultations, hearings, and public debate. Ontario Hydro funded submissions from NGOs and civil society based on published criteria. Hydro Quebec, which relied primarily on hydropower generation, used a different approach to engage the public and stakeholders in strategic-level power options assessment. They assessed a series of generic environmental comparisons of power generation options (wind, solar, hydro, cogeneration, tidal power, conventional thermal) against criteria such as life-cycle greenhouse gas emissions, acid precipitation, land requirements, energy payback, and biodiversity impact. They fed these comparisons into the public debate about options. For the key hydropower portfolio, Hydro Quebec introduced a 'Triple Bottom Line' – community agreement had to be secured, projects had to be economically feasible, and projects had to be environmentally acceptable. When considering options for its hydropower portfolio, Hydro Quebec introduced a practice where community agreement was simultaneously sought on a number of possible sites that had been studied to a very preliminary level. The normal cycle of preparing project studies to confirm environmental and technical feasibility was commenced only for those sites where community acceptance had been reached. This turned around the usual practice, where economic and environmental studies are undertaken before community agreement is sought. Sources: Ontario Hydro, 1990; Hydro Quebec, 2001. Comprehensive Options Assessment for sustainable development of infrastructure Training Manual 50
MODULE 3: Managing The Process Of Comprehensive Options Assessment Session 3.1: Managing the process of Comprehensive Options Assessment Purpose of session The purpose of this session is to present institutional, process and personnel requirements for the effective management of COA. Learning objectives As a result of this session, trainees will understand the necessary institutions and processes necessary for effective consultation and participation of stakeholders in COA. ESTIMATED TIME REQUIRED FOR SESSION (MINUTES) MODULE 3 Professional Decision-maker Policy-maker Session 3.1 Preparation 30 Contact Time 60 20 20 Exercises 20 Discussion 40 15 Introduction – the benefits and costs of stakeholder involvement Many governments are cautious when it comes to promoting stakeholder involvement in public decision-making. They may be unwilling to devolve authority, concerned about the time and resources required for stakeholder involvement, and doubtful about the added value of involving stakeholders (ESMAP & BNWPP, 2003: 17). Involving stakeholders, however, can lead to better development outcomes, make the project more attractive to external financing, and improve its legitimacy and public acceptance. Lower overall costs outweigh the incremental time and cost spent prior to decision making. Investing time and resources up-front in a planning exercise is the best way to manage the social risks that are associated with major infrastructure projects. Assessing a comprehensive range of options upstream in strategic planning helps develop a better and more diverse portfolio of interventions for project planning, including the identification and early clearance of fast-track projects that address immediate needs and the early elimination of poor projects. The time and cost associated with stakeholder participation in options assessment will vary depending on the circumstances. A conservative assumption would be that an options assessment with full stakeholder participation could be undertaken in about two years at a cost of around US$2 million. The screening and ranking process for the Medium Hydropower Study Project in Nepal took 14 months to complete (versus the anticipated 3 months), at a cost of US$1.2 million. The exercise started with an inventory of 138 potential hydropower projects and resulted in the selection of seven sites for full feasibility and environmental impact assessment study (ESMAP & BNWPP, 2003: 29). Comprehensive Options Assessment for sustainable development of infrastructure Training Manual 51
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