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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1. Why Bother?

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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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