SEA Guidance Annex 25

Key decisions in energy sector plans and key issues in SEAs

Using real examples, Annex 25 outlines the kinds of decisions energy sector plans include and how SEA adds value by identifying environmental pressures, social risks, and long-term sustainability implications before commitments are locked in.

overview

What’s Inside This Annex

International Energy Networks

Example: African Power Pools (West, East, and Southern)

Key Decisions

Energy security: diversification to reduce single source dependency; minimizing geopolitical risks or supply disruptions.
Enhancing the resilience of energy infrastructure against natural disasters, cyberattacks, and other threats.
Renewable energy integration to reduce fossil fuels and enhance energy stability.
Reliable and affordable energy to all, particularly in developing regions with a lack of basic energy services.
Leveraging energy projects to create jobs and stimulate economic growth.
Developing and enforcing joint standards and regulations
Strategies for engaging the private sector

Key Issues in SEA

Energy infrastructure alternatives;
Maximise renewable in energy mix; reduce perverse incentives for carbon-based energy.
Governance arrangements/international coordination for environmental monitoring and management
Ensure benefits for all segments of society
Promote sustainable practices and mitigate environmental degradation
Assessing and addressing risks related to geopolitical instability, natural disasters, and climate change
Alignment with other sector plans
Need for revision, updating, or strengthening of laws and regulations
Measures to rehabilitate areas affected by phasing out coal (mines and energy facilities)
Cumulative effects with other sector plans.

National Energy Plans

Examples: Vietnam SEA for Power Development Plan (Annex 28); Netherlands Regional Energy Strategies (Annex 29)

Key Decisions

Energy mix: ambition/targets for renewables (NDC); role of transition fuels; balance domestic/imported energy
Infrastructure: transmission and distribution; centralized or decentralized energy systems; smart grid technology and grid resilience; storage solutions
Regulations: emissions limits; incentives and subsidies; market reforms; role of the private sector
Energy efficiency standards for buildings, transportation, and industry.
Technology development: hydrogen, carbon capture and storage, new energy solutions
Phasing out fossils

Key Issues in SEA

Energy demand under climate scenarios
GHG emission reduction (NDC targets)
Air and water pollution/health effects: cleaner technologies and regulation
Water scarcity/reliability (hydrogen production, run-of-the river hydropower, cooling).
Land use, habitat destruction, forced displacement
Resource depletion
Energy access and equity (avoid energy poverty)
Environmental injustice and health disparities.
Long-term costs and benefits of energy alternatives

National Hydropower Plans

Examples: Quang Nam Hydropower Plan, Vietnam (Annex 30); Pakistan Jammu & Kashmir hydropower (Annex 31)

Key Decisions

Type and location of HP facilities
Grid integration: stability and peak load management, stored HP
Multi-purpose use (irrigation, flood control, public water supply, recreation)
Policy alignment with national energy policies, development goals, and sustainability targets.
Comply with international regulations on water rights, environment, and land use.

Key Issues in SEA

Climate vulnerability (floods; underperformance)
Portion of river basin(s) to remain free flowing/guarantees for migratory animals
Environmental flows for downstream functional ecosystems
Limits of acceptable change in hydrology
No-go areas/sites (protected; human use; indigenous territory)
GHG emissions by reservoirs (methane)
Forced physical or economic displacement
Cumulative effect of HP cascades and multiple water uses.
Need for upstream land conservation at basin level for sediment control (lifetime of reservoir)
Erosion of coastal zone and river bed/embankments

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SEA Guidance Annex 25