Incorporating socio-environmental considerations into project assessment models using multi-criteria analysis: A case study of Sri Lankan hydropower projects

Before commissioning any energy projects, conducting robust assessments of different options in terms of their economic and socio-environmental impacts is important for successful project implementation. Yet, there is currently a lack of tools that simultaneously assess sustainability impacts; instead, they are often investigated separately, which gives decision makers somehow disintegrated information. Thus the main objective of this study is to examine how to incorporate socio-environmental considerations into project assessment models. The multi-criteria analysis is applied to the case study of Sri Lankan hydropower projects as an illustrative example. The estimated quantitative relationship between economic, environmental and social impacts of hydropower development is presented in this study. Such estimation, using sustainability indicators of hydropower projects, enables us to understand marginal trade-offs among economic, environmental and social objectives of hydropower development. Hence, this would provide an overview of potential impacts of different scenarios that are designed to be implemented and indicate an optimum mix of hydropower generation.