Hydropower

Hydropower projects generate electricity by harnessing the flow of water – through dams, reservoirs and river diversions that can span vast areas and operate for decades. Hydropower projects alter river systems, fragment aquatic habitats and affect the species that depend upon them. Managing impacts – from early screening and biodiversity assessments through to long-term mitigation strategy and monitoring – is critical to securing lender approval, meeting regulatory requirement and demonstrating credible projects against biodiversity commitments.

Our expertise 

The Biodiversity Consultancy provides biodiversity risk management services across the hydropower project lifecycle, from inception to operation. We help developers and lenders meet the requirements of IFC Performance Standard 6, and other lender standards. We support hydropower companies to understand their nature-related impacts, data integrity and dependencies, in line with disclosure frameworks including such as Science Based Targets for Nature (SBTN), the Taskforce on Nature-related Financial Disclosures (TNFD), the Corporate Sustainability Reporting Directive (CSRD), and the Global Reporting Initiative (GRI). 

Securing lender funding in Sierra Leone 

For a hydropower project in Sierra Leone, we caried out a gap analysis and risk screening, and – together with local consultants – conducted surveys for fish species and habitats, alongside genetic analysis for primates. We then completed a critical habitat assessment and developed a biodiversity action plan aligned with IFC PS6, including a residual impact assessment, offset strategy and pre-feasibility study, and a monitoring and evaluation framework. 

This work involved engagement with the National Protected Areas Authority to ensure that offset actions aligned with national expectations and requirements. ​ 

A first for aquatic offsetting in Costa Rica 

In Costa Rica, we developed metrics to assess aquatic habitat losses and gains, and an offset plan for averted loss of natural river habitat. This was one of the first hydropower projects to use aquatic offsets, demonstrating that no net loss is feasible under the right conditions. ​ 

Delivering net gain on landmark hydropower project in Malawi 

For the Mpatamanga hydropower project in Malawi, we developed a suite of biodiversity management documents to support net gain and no net loss goals. This included a critical habitat assessment, residual impact assessment, offset strategy and feasibility study and monitoring and evaluation plan. These were brought together in a biodiversity action plan with specifically-designed mitigation measures, offset actions with clear responsibilities for implementation and defined oversight.

Engagement with the project developer, lenders, the government partner, local biodiversity experts and conservation stakeholders were central to the process. ​