the energy water nexus by daryl fields
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The Energy Water Nexus
Daryl Fields Global Water Partnership Technical Committee
Meeting of the GWP Consulting Partners 2014Trinidad and Tobago
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A walk through the nexus
1. Why bother?What relevance or risk is there to economic, social and environmental welfare?
2. What IS this nexus?What are the dimensions of the linkage?
3. Is it manageable?Making sense of complexity – towards a practical management framework?What tools do we have?
4. Where do we go from here?
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A perspective• We know a lot about energy-water linkages – it is multi-faceted
and complex – it is a network, not a nexus
• But Integrated Energy-Water Management (IEWM) is still a concept – there is an opportunity to move from a topic-by-topic approach to a systems approach
• Mainstreaming rigorous risk assessments in both energy and water sectors can help motivate action and define focus
• Don’t be shy to simplify (areas of focus, institutions) – as long as you commit to adaptive management to manage uncertainty
• Much progress can be made by recognizing and upgrading a wide range of existing tools
• But there are many gaps in awareness, knowledge and capacity
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2. What IS the energy-water nexus?
a) More than a nexus a network of linkages
b) With a range of impacts and consequences
c) Presenting risks and opportunities
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energy
An energy-water network map
ExtractionGenerationTransport
water
Biofuels
Thermal
Nuclear
Renewables
Geothermal
Hydropower
Energy for water services
Water for energy services
Irrigation
TreatmentDistribution
Effluents & Discharges Effluents & Discharges
Conjunctive Use
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energy
An energy-water network map
ExtractionGenerationTransport
water
Biofuels
Thermal
Nuclear
Renewables
Geothermal
Hydropower
Energy for water services
Water for energy services
Irrigation
TreatmentDistribution
Effluents & Discharges Effluents & Discharges
Conjunctive Use
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An energy-water network contd
Water for energy Energy for water Social/Environmental/Economic Consequences
Quantity e.g. adequate
volumes
e.g., excess
volumes
• Loss of revenues• Loss of contracts• Increased costs• Asset damage• Livelihoods• Health impacts• Biodiversity
Quality e.g., turbidity
e.g., temperature
Reliability e.g., flow pattern
e.g., peak loads
• “Water” and “Energy” cover multiple characteristics
• With a range of economic, social and environmental impacts
RISK
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3. Is it manageable?
a) Understanding risk
b) Adopting a pragmatic management approach
c) Leveraging existing tools
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energy
Towards a management framework
ExtractionGenerationTransport
water
Energy for water services
Water for energy services
Irrigation
TreatmentDistribution
Effluents & Discharges Effluents & Discharges
Conjunctive Use
Water Services
Externa
l-ities
Energy Servic
es
Resour
ce
sharing
Demand
Mngmnt
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Water intensity in
energy services
Energy intensity in
water services
An integrated energy-water management (IEWM) framework
Understand the role of water consumption and
extreme events in energy security.
Hotspots: Biofuels, Fracking
Reduce energy burden in water-using sectors,
creating a virtuous cycle. Hotspots: Irrigation
pumping, Energy pricing
Demand Manageme
nt
Externalities
Resource sharing
Apply IWRM principles utilizing modern decision tools to understand choices (manage trade-offs, exploit win-wins) during planning, design and
operations.Hotspots: Hydropower, Power pools, Integrated urban
management
Reduce the impact of discharges from both energy and water services on water quality and reliability,
especially in integrated landscapes.Hotspots: Salinization, Power plant cooling
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An integrated energy-water institutional (IEWI) framework?
ENERGY WATER
• Plant manager• Utility/Company• Dispatchers/Distribution • Regulator• Power pools• Ministry of Energy• Cttee on Water
Resources• Cttee on Climate Change• Cttee on Sustainable Dev.
• Farmers• Water user associations• Water authorities• Private suppliers• Basin organization• Ministry of “Water”• Cttee on Water
Resources• Cttee on Climate Change• Cttee on Sustainable Dev.
• As complex as the energy-water network!
• With different languageso Different spatial scales
o Different priorities and incentiveso Different market and political status
o Deep uncertainty and unpredictability
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Towards an Integrated Energy-Water Institutional Framework
Sustainable development(e.g., Climate change; Economic
development)
Integrated management(e.g., Cities; Multi-purpose Infrastructure)
Energy Sector
Water sector
Tra
nsb
ou
nd
ary W
ate
rs
Planning
“Plant manager
UtilityRegulator
Power pools”
“FarmersWater user
assoc.Utility
Basin org”
InvestmentMngmt SysRisk mngmtMonitoring
Adaptive mngmnt
PoliciesIncentives
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• PLANNING
Purpose: Cross sectoral institutions embed energy in water planning and water in energy planning; and address trade-offs/promote synergies
oMulti-objective energy expansion planningoBasin planning and water licensingoClimate change resilience programming
Examples: • Water Use Planning in BC Hydro
• South Africa energy planning models (SATIM)• Power pool planning in West Africa
• Energy climate vulnerability studies in Macedonia• Hydropower Sustainability Assessment Protocol
• Decision support systems
Tools and resources
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Tools and resources
• POLICIES & INCENTIVES
Translate plans and energy-water balance into signals for managers
oEconomic tools: tariffs, pricing, full cost accounting
o Payment for environmental serviceso Technology incentives and standards
Examples: • Tariffs for power feed-ins from wastewater-to-energy plants
• Perverse electricity subsidies in irrigation• Water efficiency standards in thermal cooling
• Simplified permitting for conjunctive use projects• Technology tax credits for energy and water productivity (cf low
emission vehicles)
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Tools and resources contd
• ADAPTIVE MANAGEMENT Address changing circumstances and uncertainty
o Data sharingo Decision support simulationso Forecastingo Decision making under uncertainty
Examples• Enhanced climate forecasting and partnerships
• Cross-border data collection and sharing
• BUSINESS PROCESSES Translate signals into investments and operations
o New technologieso Rehabilitation/Upgradeso Operating rules o Information management systems
Examples• Disaster risk management – early warning systems
• Cooling water technologies• Loss reduction measures (energy and water supply)
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Prepare your energy-water network map. Quantify the relationships based on your own context
Quantify the likelihood and (financial/ecological/ social) consequence of a disruption in the network
Use the assessment to prioritize (i) areas of focus; and (ii) partners/stakeholders
Identify familiar and off-the-shelf tools; Upgrade existing tools
Gap analysis; Research priorities
What energy-water linkages do I face?
What are my risks?
Where should I focus?
What can I do?
What else do I need?
4. Where do we go from here?
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Where do we go from here?
contd
All good? …. Not so fast!
• Are these tools available?o Water use planning at BCHydro is questioned at the corporate
level, although being used in Columbia Rive Treaty renegotiations
• Are they “fit for purpose”?o A multi-country basin organization is responsible for water
management but not all countries agree to include hydropower
• Are they functioning?o In South Africa’s SATIM model, the water criterion is not active
• We are left with opportunities and many questions….
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TEC Background Paper: Ongoing Inquiry
• Case Studies good practices, lessons learned possible typologies to assess risk
• Information exchange share experiences across sectors and countries
frame a terminology for policy dialogue
• Topic analysis? Institutional mechanismsResilience to uncertainty and change Embedding stakeholder values into DSS Establishing “rules of thumbs” for energy-
water network map
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Thank-you
This is a work in progress – we look forward to field work and consultations. Please contact me if you
have interest in participating.
Dfields@worldbank.org+1-202-458-8740
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