Constraints and opportunities in meeting the increasing use of water for energy production

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1 Constraints and opportunities in meeting the increasing use of water for energy production By: J. Granit and A. Lindström. Published by UNESCO-IHE Institute for Water Education Stockholm International Water Institute Kuala Lumpur, March 2012 Andreas Lindström

2 Stockholm Water Prize Patronised by H.M. King Carl XVI Gustaf of Sweden World Water Week in Stockholm, Sweden 21 years Stockholm International Water Institute, SIWI

3 Presentation outline 1. Water for energy-energy for water. 2. The spatial dimension- transboundary perspectives of power development (hydropower) 3. Increasing dialogue of energy and water managers-improving decision making. 4. Systems for sustainable cooperation and development- SEA for power development in a transboundary setting.

Water has multiple uses a key for sustainable economic

Energy production Water use in all steps of the thermal

4 Water has multiple uses a key for sustainable economic growth 1. Energy production Water use in all steps of the thermal energy value chain Water storage for hydropower Water for bio fuels 3. Industry & urbanization Domestic use Industrial use Waste water treatment Tourism 2. Primary production Agriculture (irrigation & rainfed) Forestry Fisheries 4. Environmental services Water quality management Biodiversity & conservation Flood & drought protection Navigation

5 Water for energy- energy for water -The Water and Energy Nexus

6 Ranges of water consumption in the energy production chain Oil Coal Bio fuels Natural gas Nuclear fuels m3/tj (various types as specified by EIA, 2011) 2-12 m3/tj (various mining types) 9, , 000 m3/tj (corn) Negligible (Shale gas 0,4-1 m3/tj) Negligible- 0,1m3/TJ (Uraniumdifferent extraction methods) 2-12m3/TJ (Uranium processing steps) Fossil fuels Nuclear Biopower Solar Hydro power Negligible- 4 m3/ MWh (fossil fuelsvarious cooling techniques) 1,5-3,3 m3/ MWh (various cooling techniques) 0,8-3,2 m3/ MWh (steam, biogas) Negligible - 4,3 m3/ MWh Photovoltaics low range values- (CSP) high range values Negligible m3/ MWh (0-209 m3/mwh is an IPCC est. but with stated uncertainties) Water for HEP Nil Wind, Ocean Negligible Granit and Lindström 2011: Based on Glennie et.al, 2010; Maheu et.al, 2009; IPCC 2011, WEF 2008

7 Energy related pressures on water resources - water requires energy

8 Impacts on water resources from energy production

9 Global issues - Increasing demand

Energy Consumption Trends Quadrillion Btu, World energy consumption forecast to grow by 49 percent from 2007 to 2035 Fossil fuels expected to continue supply much of the energy used worldwide 85% of

10 Energy Consumption Trends Quadrillion Btu, World energy consumption forecast to grow by 49 percent from 2007 to 2035 Fossil fuels expected to continue supply much of the energy used worldwide 85% of global energy supply in 2008 Source: International Energy Outlook IEO 2010, Reference case Renewable energy is relatively the fastest-growing source of electricity generation Globally 13 percent of primary energy demand is met by renewable energy Almost 80 percent of the increase is in hydroelectric power & wind power

Water Scarcity: Aggregated global water supply gap, estimated to be 40% by 2030 assuming no efficiency gains More than 75% of river flows are allocated to

11 Water Scarcity: Aggregated global water supply gap, estimated to be 40% by 2030 assuming no efficiency gains More than 75% of river flows are allocated to agriculture, industries or domestic purposes Water resources are abundant relative to water use, with less than 25% of water from rivers withdrawn for human purposes

12 Water availability due to climate change is projected to change dramatically by 2050 in many parts of the world

13 Transboundary Waters and Benefit Sharing Through Electric Power Systems

14 The spatial dimension Water withdrawal & water consumption patterns Global water withdrawal patterns (Shiklomanov 2000) 70% Agriculture; 20% industry; 10% households But major regional differences & trends in water withdrawal EU (EC 2007) 44% for energy production 24% for agriculture, 17% for public water supply 15% for industry USA (US Department of Energy 2006) 40% Irrigation 39% Thermoelectric generation 14% Public & domestic supply 7% Industry, other Consumptive use part of total water withdrawal for electricity generation is about 3-5% Security of supply is important to guarantee power generation Return flows need to be managed; temperature & quality

WE+EW in a Transboundary/Regional Context Water (surface & ground) crosses boundaries 279 transboundary basins globally Political & physical boundaries at local, national, & regional levels Upstream

15 WE+EW in a Transboundary/Regional Context Water (surface & ground) crosses boundaries 279 transboundary basins globally Political & physical boundaries at local, national, & regional levels Upstream & downstream issues Electricity generation from oil, coal, renewables, and other technologies are spatially unevenly distributed Ensure security for infrastructure assets Ensure water & energy security for national and regional development

16 Economic mass is highly concentrated in regions/markets that are integrated and were barriers to trade are low Based on WDR 2009, World Bank

17 Agriculture Development and Trade BENEFITS OF COOPERATION The whole is greater than the sum of its parts

energy consumption Provide base load and answer peak demand System enabler for other RE such as wind, solar, geothermal, ocean

18 Hydropower A renewable source of fuel for electric power generation Currently provides 16% of global electricity supply (IEA 2009) Huge potential in developing regions Can be important to balance intermittent energy sources when trying to decarbonize energy consumption Provide base load and answer peak demand System enabler for other RE such as wind, solar, geothermal, ocean etc, Important for development of power trade and/or pools Significant risks to address, good practice exists to build on, do it right

19 Energy assets such as HEP are spatially distributed in all regions globally Africa 63 Transboundary Basins Example of HEP potential in 3 TB basins 4,885 MW Developed 13,500 MW potential 5,500 MW Developed 39,000 MW potential 782 MW Developed 1000 MW Pump Storage potential

20 Electric power trade can transfer the benefits from TB water management to load centers supporting market integration in a region Southern Africa Power Pool (SAPP) in SADC Scandinavian Power Market Nordpool in EU

Sovereign state will not cooperate on TB water management if incentives are not clarified Focus on outcomes/benefits from TB water resources management and the

21 Sovereign state will not cooperate on TB water management if incentives are not clarified Focus on outcomes/benefits from TB water resources management and the sharing/trading of those in a market - Energy, food, ecosystem goods and services - Win-win In contrast to an approach focusing on allocating water between riparians - Zero-sum

22 Conclusions part- 1 Conclusion Complication Water and energy polices would benefit from harmonization. Trading benefits from water could provide opportunities in a transboundary setting. Common markets to trade shared benefits from water could increase overall cooperation and stability. They seem to be planned in isolation where one might constitute an obstacle for the other. Benefits from water is now often treated as an exercise in allocating water volumes. Issues related to water resources often induce zero-sum positioning.

Break silo thinking- increasing DIALOGUE of energy and water managers Swedish Cluster Group on Water and Energy Cluster Groups: targeting key water related concepts.

23 Break silo thinking- increasing DIALOGUE of energy and water managers Swedish Cluster Group on Water and Energy Cluster Groups: targeting key water related concepts. Developing knowledge, dialogue and guiding policies. Ministry of Foreign Affairs and Ministry for the Protection of the Environment. Administered by the Swedish Water House (SIWI).

24 Break silo thinking- increasing dialogue of energy and water managers Swedish Cluster Group on Water and Energy Identifying the issues- overarching problems related to theme. Gathering relevant competence. Calibrating the analyses- revisiting initial problem formulation.

25 Break silo thinking- increasing dialogue of energy and water managers Swedish Cluster Group on Water and Energy Deciding task and work streams: Sharing knowledge internally- increase own understanding of issues. Sharing knowledge with other interested groups. Take part in international dialogue. Produce policy advice.

26 Presentation based on paper Strategic Environmental Assessment as a tool to Develop Power in transboundary Water Basin Settings Jakob J. Granit, Stockholm International Water Institute, Sweden, R. Michael King, SNC-Lavalin Inc., Canada, Raymond Noël, Newaygo Consultants Inc., Canada International Journal of Social Ecology and Sustainable Development, October-December 2011, Vol. 2, No. 4

Approaches to cooperatively identify incentives from

Environmental Assessment (SEA) A systematic, and

effects of a policy, plan, or programme and its

27 Approaches to cooperatively identify incentives from cooperation need to be developed Strategic Environmental Assessment (SEA) A systematic, and comprehensive process of evaluating the environmental effects of a policy, plan, or programme and its alternatives and using the findings in publicly accountable decision-making

28 Steps of SEA for Power Development in a Transboundary River Basin Setting (built on cases from the Nile basin)

29 Steps of SEA for Power Development in a Transboundary River Basin Setting Regional power needs assessment Inventory of power options Inventory of water resources base

30 Steps of SEA for Power Development in a Transboundary River Basin Setting Screening for power options Comparative analysis of power options and ranking of power options

31 Steps of SEA for Power Development in a Transboundary River Basin Setting Cumulative impacts assessment including climate change sensitivity tests Power development strategy and indicative generation plan

32 Conclusions Water and energy resources are intimately linked but implications of this relationship will look different depending on the spatial area of analyses as well as specific circumstances in that area. In order to continuously improve decision-making and develop assessment and planning systems an integrated dialogue between concerned sectors and communities needs to be activated. It is important that assessment frameworks related to water and energy issues allows for system planning of resources including options assessment, inclusive stakeholder participation and cumulative impacts analyses- SEA could be such a system

Further work Increase the understanding of the linkages between energy, water and other development policies in different regional markets HEP and its role as an enabler for RE deployment Water use

33 Further work Increase the understanding of the linkages between energy, water and other development policies in different regional markets HEP and its role as an enabler for RE deployment Water use in the energy supply chain (Green) economic growth and poverty alleviation Transboundary water resources management options Setting priorities between different users Regional integration versus too much inter-dependency, security of supply (water and/or energy) at national and regional levels Centralized vs/and/or decentralized power generation, transmission, distribution and marketing Hard security implications Power asymmetry and hydro-hegemony

Ensuring urban water security through better understanding of the water-energy-food nexus

Ensuring urban water security through better understanding of the water-energy-food nexus ASEM Seminar on Sustainable Management of Water Resources in the Context of Urbanization May 22 2014, Changsha