Screening Hydropower Facilities for Climate Change Risks to Business Performance in the Philippines

Southeast Asia is expected to experience higher temperatures and greater precipitation variability owing to climate change, resulting in impacts on hydropower performance and reliability. In the Philippines, researchers and in-country partners assessed environmental, financial, and social performance risks related to the 7-MW run-of-river Tudaya-2 hydropower plant. The analysis indicated only small risks of the Tudaya-2 plant not meeting its current environmental, financial, and social objectives. However, future increases in flash floods, droughts, and deforestation could threaten the achievement of some objectives, particularly the plant’s ability to meet energy-generation targets during the dry season. The analysis also highlighted structural, policy, and planning measures for addressing risks. The analysis aligns with priority adaptation measures presented in the Philippines INDC, including improved risk assessment and management for hydropower. Notable findings and good practices from this analysis are highlighted below.

• Updating flood risk maps and hydropower maintenance programs to account for climate change effects supports climate preparedness.
• Raising government and community-level awareness of the need for forest protection and management is important. Healthy forests can mitigate the erosion that often leads to increased sedimentation in waterways, reduced dam capacity, and lower hydropower turbine performance.