RISK BASED DAM PORTFOLIO M ANAGEM ENT IN AUSTRALIA
Third National Dam Safety Conference Roorkee, India, February 2017
Angus Swindon National Director Power & Water Entura, Hydro Tasmania
RISK BASED DAM PORTFOLIO M ANAGEM ENT IN AUSTRALIA Third National - - PowerPoint PPT Presentation
RISK BASED DAM PORTFOLIO M ANAGEM ENT IN AUSTRALIA Third National Dam Safety Conference Roorkee, India, February 2017 Angus Swindon National Director Power & Water Entura, Hydro Tasmania Out line Dam Portfolio M anagement Australian
Third National Dam Safety Conference Roorkee, India, February 2017
Angus Swindon National Director Power & Water Entura, Hydro Tasmania
Dam Portfolio M anagement – Australian Context Hydro Tasmania’s Dam Portfolio M anagement
Introduction to Hydro Tasmania Business
Hydro Tasmania’s Dam Portfolio Dam Safety M anagement & the use of Risk
Guidelines and Standards which inform the Dam Safety Programme
Programme Arrangement
Risk Acceptance Criteria & Assessment
Risk M itigation - CAPEX
Risk M anagement - OPEX
Program Performance Assessment Examples of Risk M itigation Projects Conclusion
Australia experienced a major dam building era in the 1900’s
Oldest dams late 1800’s, rapid expansion post WW2
Large portfolio’s predominantly publicly owned
M oved towards multiple use recognition
New dams / redevelopments commonly using PPP Current situation characterised by
Ageing & deteriorating infrastructure
Increasing community expectations & risk awareness
New understanding & changing standards
Centralised management, fewer diversified skilled resources Difficult to continue to manage as historically
State based oversight – no National Legislation Responsibilities remain with the owner 4 states/ territ have DS Legislation & Regulation, 3 states/ territ don’t Peak body providing leadership and guidance is ANCOLD ANCOLD is an active member of the International body ICOLD
Context Internal - Business priorities, Nature of portfolio External – Regulation, Public expectations Dam M anagement Activities Surveillance – Inspection, M onitoring, Reviews Operations & maintenance Capability, Information, Preparedness Rectification Activities Undertake maintenance, or Investigate, design & undertake major works Risk Assessments Is There a Deficit? Is it tolerable? Y es Y es No No
Hydro Tasmania owns, operates and maintains 29 hydropower stations 55 major dams + 150 smaller dams 188 headwork gates and valves 22 canals 19 tunnels 43 pipelines 58 machines System configuration 2 large inter-annual storages 5 seasonal storages Run-of-river Australia’s largest clean energy producer Australia’s largest water manager
Owner / Operator Developer Retailer Professional Services
1914 1940 1960 1980 1989 1994 2005 2008 2011 2014 2017
Our history starts M ultiple projects developed M ajor T asmania industrialisation Start of external consulting Anthony scheme completed (last major) Internat. consulting expansion Australian Offices established Entura Brand launched Africa Entura J V NEM Entry Retail (M omentum) Entura India Opened
23 Earth fill 14 Concrete Gravity 12 Concr Faced Rock Fill 2 Bitumen Faced Rock Fill 2 Gravity Arch 2 Thin Arch
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Population at Risk Severity of Damage & Loss Negligible M inor M edium M ajor 142 Very Low 27 Low Significant 1-10 Low 6 Significant 2 High C 11-100 x Significant High C 4 High B 101-1,000 x x 20 High A >1,000 x x x 3 Extreme
Portfolio by ANCOLD Hazard Category – 204 Dams in total
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$150M+ $750M+
Likelihood
Impact (Consequences)
Insignificant 1 Minor 2 Moderate 3 Major 4 Extreme 5 Catastrophic 6
L M H E E E
L M H E E E
L L M H E E
L L L M H E
L L L L M H
F . Extremely Rare
L L L L L M
Catastrophic+ 7
E E E E E H
Probable Loss Of Life 0.1 1 10 100 1000 1:106 1:105 1:104 1:103 1:102
High Extreme M oderate Low
Probable Loss Of Life 0.1 1 10 100 1000 1:106 1:105 1:104 1:103 1:102
Prior to Mitigation Current Assessment
Probable Loss Of Life 0.1 1 10 100 1000 1:106 1:105 1:104 1:103 1:102
Dam5 Dam2 Dam6 Dam9 Dam3 Dam7 Dam4 Dam10 Dam1
Prior to Mitigation Current Assessment
Dam8
Probable Loss Of Life 0.1 1 10 100 1000 1:106 1:105 1:104 1:103 1:102
Dam2
Current High Risks
$21m $11m $16m $12m $16m $11m Summary Cost Estimate for FYE
Analysis Design & Contract Prep Risk Mitigation Activity & Bus. Case Approval Possible early start / pipeline
2015 2010 2011 2012 2013 2014 2009
Dam 4 Dam 3
$40m
Dam 6 Dam 9 Dam 8 Dam 10
$3m $5m $25m
Dam 5
$6m $38m
Program 1
$5-6m pa $3m $5m Interim Measures being investigated - Structural works 2017 $1m
$7m
Dam 1
$13m
Dam 2
Life safety Risk vs Time (2000-2020 and beyond)
0.00E+00 1.00E-02 2.00E-02 3.00E-02 4.00E-02 5.00E-02 6.00E-02 7.00E-02 8.00E-02 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year (with tick mark at June) Life Safety Risk (lives/year) 10 Year Plan Previous Plan Past 10 years plan (complete) 10 Year Plan Period Future years
Potential range of risk variance over 10 year plan period
Yr 0 Yr 10 (now) Yr 20 Yr 30
Alternative #2 – defer program Quick Wins Complete Dam #1 complete Dam #2 complete Dam #3 complete Dam #4 imminent Alternative #1 – defer program Original Program
Alternative #1 Alternative #2
0.000001 0.00001 0.0001 0.001 0.01 0.1 1 0.01 0.1 1 10 100 1000 10000
Financial Loss ($M) Annual Probability of Failure
$10M $1M $100k $10k High Extreme M oderate Low
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Dam Sustainability Rating
Very Low Low Significant High C High B High A Extreme 1 2 3 4 5 6 7 5 2 1 1 H H E E 4 3 2 2 1 1 H H 3 5 4 3 3 2 2 1 2 6 6 5 4 4 4 3 1 7 7 7 6 6 6 6 Sustain Score DSRdb Consequence Rating
Ancold Hazard Category Deficiency Category
Increased Scrutiny
Increased focus on
Compliance - Current Status Previous Report Status Issue Compliance Management Compliance Status Management Status Dam Surveillance
B B
Dam Operations and Maintenance
B B
Regular Reporting
A A
Audits and Reviews
A A
Performance of Dams with Heightened Safety Awareness
A A
Investigation and Resolution of Dam Safety Deficiencies
A B
Emergency Preparedness
A B
Maintaining Personnel Capability & Access to Key Technical Information
A A
Communication with External Stakeholders
A A
Embankment Core Zone 2A Sand Filter Zone 2C Drainage Zone 3 Rockfill
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32
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Embankment Reconstruction Strengthen Walls Investigate Foundation M onitor Spillway Erosion
Establish the context of portfolio management – this is critical
Regulatory environment
External stakeholders
Shareholder demands & risk appetite
Business capacity & priorities Establish goals, objectives & measures
Financial
Risk
Program delivery & performance Review and monitor performance of the above, incl changes Report outcomes, identify areas for improvement and reset targets