western irrigation futures customer information sessions may 2010 werribee irrigation district

Western Irrigation Futures

Customer Information Sessions May 2010

Werribee Irrigation District

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Today's discussion …

1. Key feedback from customer workshops and surveys

2. Key findings from WIF

– Bulk water

– Infrastructure options

– Environment

– On-farm management

3. Possible path forward

– Water and channel system

4. Next steps

– Customer reference group

– Next season

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Recap…

WIF Atlas

Customer Consultation

Technical Workshops

Draft Options Paper

Detailed Technical Work

Bulk Water Environment Infrastructure On farm

Final Options Paper

Customer engagement and consultation

Government / Agency consultation

Today’s

discussion

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1. Customer Feedback

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What you told us you would like…

• Key Issues

– Fit-for-purpose water

– Sufficient volume to support historic production levels

– Water at affordable price, and

– Fix leaky channels

• Other concerns raised

– Farming viability

– Agricultural practices

– Future of the district

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2. Key Findings:Bulk Water

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Bulk water options investigated…

• River water • Desalination of recycled water

– Reverse Osmosis (RO)– Nanofiltration (NF)– Electrodialysis Reversal/Ultra Violet

• Trading options – North/South pipe line– Macalister Irrigation District

• Metro water– Water from Melbourne Pool via entitlement or supply agreement

• Recycled water – Continuation of supply from WTP – Enhancements

•Storage•Increased flow rates

• Groundwater• Storm water harvesting

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River water supply – climate scenarios…

Lerderderg River Seasonal Inflows (at Sardine Creek)

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Salinity at Melton Reservoir and Werribee Weir…

EC Werribee River

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Rat

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Melton

Werribee weir

WerribeeWeir/Melton ratio

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Desalination of recycled water…

• 3 technology 0ptions Investigated…– Reverse Osmosis (RO)– Nanofiltration (NF)– Electrodialysis Reversal (EDR) and disinfection

• Capital cost

– based on taking salt from recycled water and mixing it with the standard recycled water – This is the cheapest option

Quality / Volume 40 ML/day 65 ML/day 90 ML/day

1,000 EC $130m – $170m $170m – $230m $210m – $280m

1,300 EC $110m –$140m $130m – $180m $150m – $210M

1,500 EC $90m – $120m $120m – $160m $140m – $190m

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Desalination recycled water supply cost…

Supply system Efficiency $ per ML

No channel improvement 65% $2,562

Piped channels 90%+ $2,186

Lined channels 85% $2,097

• Assumptions…– 1500EC target– 65ML day supplied

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Trading options…

•North South Pipeline

– Government committed to maximum 75,000 ML

– Commitment to Northern Irrigators that this would be maximum amount

– Option to access water from northern Victoria not available

• MID – Thomson Dam

– 11,000 ML Entitlement on key rivers in the MID

– 30% can be transferred across the system

– Water must be purchased and water transferred through district.

– Cost to transfer is $430 per ML for 2009/10.

– Must be delivered with another product (river / recycled water)

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Other options…

• Groundwater

– Fully allocated and currently not available

– Deeper aquifer is salty and not suitable without high cost treatment

• Storm water

– MWC currently investigating storm water harvesting options that may provide water for irrigation in the long term

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2. Key Findings:Infrastructure Options

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Infrastructure options ….

• Pipelining

– Options investigated included piping 44 km

• Pumped pressure pipe system, and

• Gravity piped system

» $44m and subject to cost escalation

– Has a life expectancy of 80 years

– Provides highest efficiency 90%+

– Full cost recovery over 25 years

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Infrastructure options ….

• Channel lining

– Options investigated included

• Lining with polypropylene roll out liners

• Spray-on membrane liners

• Life 25 years

– Expected efficiency 85%

– Cost ranges from $16m – $20m

• Water measurement

– Remote control regulators installed at key sites

• Improve measurement and operation flexibility

– Customer outlets – metering to use magflow meters

– Total cost – approx $2m

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2. Key Findings:Environmental issues

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On-farm issues …

• Commercial considerations– Cost of production – Choice, mix and rotation of crop types– Scale of operation and constraints– Land values, planning regulations and impacts of development on farming

• Water resource availability– Security of water supply to grow crops – Scope to reduce water use by utilising other irrigation methods

• Agronomy and water quality– Identification and costing of best practice requirements for irrigation, soil

salinity and nutrient management

• Environmental implications– Understanding of potential impacts

• Social factors– Social, cultural, adoption of technology, management practices and business

decisions

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3. Possible Path Forward

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Possible future supply approach…

• Government announced access to 2000ML of Melbourne’s water

– Potential to use most metro water in summer to reduce recycled water salinity to 1,600 EC’s

– Total flow rate increased from 60ML/d to approximately 80ML/d

– Potential to ‘bundle up’ and offer a ‘shandy’ (river / recycle / metro water) product at a single price from 2011/12

• Means everyone pays, everyone gets salinity benefit

– We would only access metro water when

• River water allocations are low and

• Salinity is high

• Supply may include a mix of river water (when available), recycled water and potable water to lower salinity

• Channel lining, metering and some automation

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What does this mean for customers…

• Improved outcome

– More water available for irrigation

– Access to lower salinity water to improve soil salinity and plant health

– Reduced application of soil conditioners and other additives and therefore less on farm cost

– Potential to increased on-farm production, yield and crop quality

– Long term supply contract

– Improved viability of farming

• Leads to environmentally sustainable outcomes for the district

• The trade off

– Higher price for recycled /metro water

– Greater take or pay commitment

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Recycled water…

• Currently contracted to 2019 • MOU being developed with Melbourne Water

– Revision of current agreement from 1 July 2011 for 20 to 25 years– Use current base price from the recycled plant (continued subsidy)– 60 ML day flow rate; 11,100ML per year contract volume – best

endeavors above that (as per now)– Additional costs to be paid by growers for significant service

improvements as determined via regulatory processes, e.g.• Storage (reliability) • Larger pipe and pump (higher flow rates )

– Desire for increased ‘take or pay’ component – currently 25%– Best endeavors reliability – as per now

• Improvement options– Storage– Flow rate enhancements

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Effective price comparison…

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tus

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pip

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Eff

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$/M

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Effective Price =

Total volume delivered Total price paid

No rebate10% water allocation

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Effective charges…

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4. Key FindingsNext steps

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Consultation process…

• Establish Customer Reference Groups – WID and BMID

• Seek nominations– 1 WBMCCC for each group– 6 customer representatives for each group – Stakeholder representatives

• Appoint independent chair

• Terms of reference to include– Bulk water supply options – Pricing matters– Infrastructure issues (e.g. channels and storages)– Environmental matters – Contract matters (recycled water, other bulk supplies)

• How do you get onto the Customer Reference Group?

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SRW in consultation with CRG…

• Finalise district strategy

• Communicate strategy to all customers

• Develop new customer contracts

• Develop business case to support infrastructure investment

• Implement strategy

• Transition to new operating arrangements 2011-2013

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District update…

• Recycled water supply

– Continue supply up to 68ML day

• River water

– Expect minimum 6% starting allocation

– Expect water quality to improve with increase in allocation

• Metro water

– Available for next season

– Discussion required on how this is offered

– Delivery price in the order of $960 per ML for 2010/11

– Detail to be worked through with CRG

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Questions?