The document discusses the energy-water nexus and proposes moving towards an integrated energy-water management approach. It summarizes that: 1) The energy-water nexus is complex and interlinked, like a network more than a simple nexus. 2) Understanding and managing risks across this network can help motivate action and prioritize areas of focus through tools like energy-water network mapping and risk assessment. 3) An integrated management framework is needed to address this complexity, including cross-sectoral planning, policies to align incentives, adaptive management, and business processes to translate plans into operations.

1. The Energy Water
Nexus
Daryl Fields
Global Water Partnership Technical Committee
Meeting of the GWP Consulting Partners 2014
Trinidad and Tobago
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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?
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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
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4. 1. Why Bother?
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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
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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
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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
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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
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RISK

9. 3. Is it manageable?
a) Understanding risk
b) Adopting a pragmatic management approach
c) Leveraging existing tools
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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
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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
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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.
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• 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
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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
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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)
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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)
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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?
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4. Where do we go from
here?

18. Where do we go from here? contd
All good? …. Not so fast!
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• 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
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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
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