The Hydropower Sustainability Alliance (HSA) has launched HydroSelect, a new tool aimed at improving early-stage decision-making in hydropower development. The tool is intended for use by developers, governments, investors, and other stakeholders to identify viable and sustainable hydropower project concepts before major investments are made.
HydroSelect allows users to evaluate project options through environmental, social, and governance (ESG) criteria. It is designed to prevent costly delays, community opposition, and environmental issues by encouraging informed decisions at the outset.
“Too often, developers commit to a site without fully understanding the risks, only to face costly delays, community opposition, or environmental barriers later on,” said Alain Kilajian, Deputy Executive Director of HSA. “HydroSelect helps to avoid situations like this. It brings sustainability to the front of the decision-making process, enabling smarter and more responsible planning.”
The tool is structured around a three-step process: identifying energy needs, reviewing project concepts, and ranking options based on sustainability criteria. These criteria include environmental and social risks, community acceptance, and the potential to secure permits and financing.
HydroSelect was developed following a global consultation in 2024 involving members of the Hydropower Sustainability Council, which includes representatives from government, industry, finance, and civil society.
Kate Lazarus, Senior ESG Advisory Regional Lead, Asia Pacific, International Finance Corporation (IFC), said: “The HydroSelect tool is an essential resource for guiding early-stage decision-making in hydropower development supporting proactive project siting and contributes to basin-wide strategic and cumulative impact assessments.
“HydroSelect empowers stakeholders to identify potential environmental and social risks early on. This approach enables more informed planning, fosters responsible development, and strengthens long-term sustainable environmental and social strategies.
“IFC has been proud to collaborate with Hydropower Sustainability Alliance and contribute to its development and advocate for its use as part of our ESG Landscape Advisory in Asia Pacific.”
Nasib Man Singh Pradhan, Director at Nepal Electricity Authority, added: “HydroSelect strengthens Nepal Electricity Authority’s (NEA’s) early-stage decision-making by providing structured insights into environmental and social risks.
“While only projects with extreme risk are screened out, tools like this help clarify uncertainties early on – guiding our Screening and Ranking Program toward smarter, more sustainable hydropower development aligned with both national priorities and community needs.”
Marta Juhasz, Environmental and Social Officer at FMO (Dutch Entrepreneurial Development Bank), commented: “Early decisions revolve around planting the right seed. In the case of hydropower development, this means integrating environmental and social considerations into day one of a project.
“HydroSelect offers a practical way to do this. FMO is proud to support the tool’s launch.“
Govind Ghimire, CEO of NMB Bank, said: “Piloting HSA’s HydroSelect sharpened our early ESG screening and improved credit calls.
“It helps clients lay solid foundations for meeting global sustainability standards and could channel more finance toward responsible low-carbon hydropower. We’re keen to share our experience and support its wider adoption.”
HSA said it will now work with partners to implement HydroSelect in countries expecting growth in hydropower development, with the goal of aligning new projects with international best practices.
