The Energy Water Nexus by Daryl Fields

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  • 1. The Energy Water Nexus Daryl Fields Global Water Partnership Technical Committee Meeting of the GWP Consulting Partners 2014 Trinidad and Tobago 1
  • 2. 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? 2
  • 3. 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 3
  • 4. 1. Why Bother? 4
  • 5. 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 5
  • 6. energy An energy-water network map Extraction Generation Transport water Biofuels Thermal Nuclear Renewables Geothermal Hydropower Energy for water services Water for energy services Irrigation Treatment Distribution Effluents & Discharges Effluents & Discharges Conjunctive Use 6
  • 7. energy An energy-water network map Extraction Generation Transport water Biofuels Thermal Nuclear Renewables Geothermal Hydropower Energy for water services Water for energy services Irrigation Treatment Distribution Effluents & Discharges Effluents & Discharges Conjunctive Use 7
  • 8. 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 8 RISK
  • 9. 3. Is it manageable? a) Understanding risk b) Adopting a pragmatic management approach c) Leveraging existing tools 9
  • 10. energy Towards a management framework Extraction Generation Transport water Energy for water services Water for energy services Irrigation Treatment Distribution Effluents & Discharges Effluents & Discharges Conjunctive Use 10 Water Services Energy Services
  • 11. Water intensity in energy services Energy intensity in water services 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 Management 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 11
  • 12. 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. 12 • As complex as the energy-water network! • With different languages o Different spatial scales o Different priorities and incentives o Different market and political status o Deep uncertainty and unpredictability
  • 13. 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 TransboundaryWaters Planning “Plant manager Utility Regulator Power pools” “Farmers Water user assoc. Utility Basin org” Investment Mngmt Sys Risk mngmtMonitoring Adaptive mngmnt Policies Incentives 13
  • 14. • PLANNING Purpose: Cross sectoral institutions embed energy in water planning and water in energy planning; and address trade-offs/promote synergies o Multi-objective energy expansion planning o Basin planning and water licensing o Climate 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 14
  • 15. • POLICIES & INCENTIVES Translate plans and energy-water balance into signals for managers o Economic tools: tariffs, pricing, full cost accounting o Payment for environmental services o 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) 15
  • 16. • ADAPTIVE MANAGEMENT Address changing circumstances and uncertainty o Data sharing o Decision support simulations o Forecasting o 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 technologies o Rehabilitation/Upgrades o Operating rules o Information management systems Examples • Disaster risk management – early warning systems • Cooling water technologies • Loss reduction measures (energy and water supply) 16
  • 17. 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? 17 4. Where do we go from here?
  • 18. Where do we go from here? contd All good? …. Not so fast! 18 • 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….
  • 19. 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 mechanisms Resilience to uncertainty and change  Embedding stakeholder values into DSS  Establishing “rules of thumbs” for energy- water network map 19
  • 20. 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 20
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