Environmental and Social Impact Assessment in Large-Scale Renewable Energy and Hydrogen Projects: Achievements and Remaining Challenges

Project description

Large-scale energy projects invariably have significant impacts on the natural environment and cultural landscapes. This is equally true for renewable electricity generation and low-emission hydrogen production. While the specific impacts at a given location may be relatively limited, such projects often extend over vast areas, potentially resulting in considerable environmental and social consequences. For example, the Noor Ouarzazate Solar Complex in Morocco covers approximately 3,000 hectares, while the concession area of the Hyphen Hydrogen Project in Namibia spans roughly 4,000 km². The impacts vary according to the technologies employed and the characteristics of the project area. They can range from visual and noise disturbances associated with wind farms near populated areas, to the disruption of natural habitats and pastoralist migration routes by infrastructure development, and the contamination of seawater caused by inadequately treated brine from desalination plants supplying hydrogen projects.

Environmental, Social, and Governance (ESG) standards are widely regarded as an important instrument for mitigating such impacts. National regulatory authorities, international project developers, and financial institutions increasingly rely on Environmental and Social Impact Assessments (ESIAs) when making approval and financing decisions. In principle, ESIAs are intended to facilitate the governance of large-scale projects by identifying potential adverse impacts at an early stage, discussing them through stakeholder consultations and public hearings, and addressing them through appropriate mitigation measures. In practice, however, these objectives are not always achieved. On the contrary, projects are frequently delayed or even cancelled due to environmental and social concerns, as examples from Costa Rica and Uruguay demonstrate. Comparable cases can also be found in Germany and Sweden, despite their highly institutionalized and mature impact assessment systems.

A new IDOS research project seeks to identify the main reasons for the gap between the widespread adoption of ESIA practices and the often limited social acceptance of renewable energy and hydrogen projects. The findings are expected to contribute to reducing implementation barriers and conflicts surrounding green energy and hydrogen investments. This is particularly relevant given that the energy transition remains at an early stage in many regions of the world.