The Energy Water Nexus. By Daryl Fields.

The Energy Water Nexus

Daryl Fields Global Water Partnership Technical Committee

Meeting of the GWP Consulting Partners 2014

Trinidad and Tobago (modified)1

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 to key areas of focus in a practical IEWM framework

• Much progress can be made by recognizing and upgrading (i) existing institutional structures and (ii) a wide range of existing tools

• But we must address many gaps in awareness, knowledge and capacity

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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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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

4RISK

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

ServicesEnergy Services

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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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 languageso Different spatial scales

o Different priorities and incentives

o Different market and political status

o Deep uncertainty and unpredictability

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

Tran

sbo

un

dary

Waters

Planning

“Plant managerUtility

RegulatorPower pools”

“FarmersWater user assoc.

UtilityBasin org”

InvestmentMngmt SysRisk mngmt

Monitoring 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

o Multi-objective energy expansion planning

o Basin planning and water licensing

o Climate change resilience programming

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• 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

)

• ADAPTIVE MANAGEMENT: Address changing circumstances and uncertainty

o Data sharing

o Decision support simulations

o Forecasting

o Decision making under uncertainty

• BUSINESS PROCESSES: Translate signals into investments and operations

o New technologies

o Rehabilitation/Upgrades

o Operating rules

o Information management systems

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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….

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?

How can I act?

What else do I need?

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From the perspective of our clients?

TEC Background Paper: Ongoing Inquiry

• Case Studies � good practices, lessons learned� possible typologies to assess risk

• Information exchange � share experiences across sectors and countries� engage global players (esp. private sector)

• Topic analysis? � Transboundary issues� Resilience to uncertainty and change� Hydropower� 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.

[email protected]

+1-202-458-8740

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