Demonstrated Need and Strategic Fit
Demonstrated need and strategic fit refers to the contribution of a hydropower project in meeting demonstrated needs for water and energy services as identified through broadly agreed local, national and regional development objectives, policies and plans.
The better a developer can demonstrate alignment, have its own policies clearly established to address significant project issues, and ideally also demonstrate a track record of implementation, the more likely it is that the developer will be able to gain stakeholder support.
Understanding good practice
Adhering to good practice in this guideline can help a project fit with development objectives and relevant policies, and be confident that it is a priority option in meeting identified needs for water and energy services.
International industry good practice in demonstrated need and strategic fit for hydropower projects is defined in the Hydropower Sustainability Guidelines on Good International Industry Practice (HGIIP).
Assessing project performance
Two assessment tools are available to measure hydropower project performance:
In Hydropower Sustainability Assessment Protocol (HSAP), Demonstrated Need and Strategic Fit is addressed in P-3 for the preparation stage.
In Hydropower Sustainability ESG Gap Analysis Tool, Demonstrated Need and Strategic Fit is included in Environmental and Social Issues Management addressed in Section 1.
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