B R S S E M I N A R S E R I E S P R E S E N T S :

Friday 18 November

Irrigation Systems Water Savings - Technical,Economic and Institutional Issues

Dr Shahbaz Khan - The Water for a Healthy CountryFlagship, CSIRO

In the Murray Darling Basin it is generally accepted that there will be lesswater available for irrigated agriculture in the future and that the availableresource must be used more efficiently. Water for environment or newirrigation developments needs to be resourced through irrigation watersavings at the farm and system levels. However water savings from one partof the system may lead to higher water use in another part of the system andthe overall improvement may be negligible.

The key to achieving substantial water savings lies in the assessment andhydrologic ranking of water saving options in a “whole of system” context.This seminar describes results of a major water use efficiency study in theMurrumbidgee Valley, Australia. Benefits of a systems approach aresummarised through a hydrologic and economic evaluation of water savinginterventions at the field, irrigation area and catchments levels. Supply anddemand theory is used to explore how to internalise the social costs createdby irrigation activity and saving of associated losses that burden the local andregional environment.

11.00am - 12:00noon (morning tea at 10:45am)Edmund Barton Conference Centre (in the courtyard)

Department of Agriculture, Fisheries and ForestryEdmund Barton BuildingKings Avenue, Canberra

Bookings not required.Parking can be a problem, we suggest taking public transport or a taxi.

For further details, please call the BRS Seminar Coordinator on 6272 4011.

For further information on BRS Seminars or to obtain papers/presentations supplied byprevious seminar presenters, please visit our website at: www.brs.gov.au/brsseminars

Click to edit Master subtitle style

Irrigation Systems Water Savings: - Technical,Economic and Institutional Issues

Shahbaz Khan

Stream Leader Irrigation Systems/Professor of Hydrology

Acknowledgements: Water for a Healthy Country Flagship, ACIAR

and Pratt Water

www.csiro.auPresentation Objectives

ß Using examples from Australia and China

ß Two examples of options and relative size of watersavings in large irrigation systems

ß Issues associated with realising these water savings

ß Suggest a possible way forward – how to increase waterproductivity at the system level

www.csiro.au

CLIMATE VARIABILITY and CHANGERainfall

CATCHMENTIRRIGATION

GROUNDWATER

WETLAND

RIVER

ESTUARY

SEADAM

Key Pressure Points for Increasing WaterProductivity in Rice Based Systems

www.csiro.auWater losses and gains are part of the water cycle

gain

loss

www.csiro.au

5125

14

17

3924

15

1096

7

1217

2536

22

194

1181

21

466

2038

-99590

164282386

#

Wagga Wagga

#

Narrandera

#

Darlington Pt

#

D/S Hay Weir

#

D/S Balranald Weir

Inflow / Outflow (GL)

Diversions (Gl)

Evaporation (GL)

Net Change (GL)

1880

1945

1830

2216

#

Burrinjuck Dam

#

Blowering Dam

Murrumbidgee System Water Account (1991)

www.csiro.auDecline in Deeper Groundwater Pressures (1990-2000)

The overall basis for the groundwater allocation is the averageannual recharge to each groundwater source as follows:(a) 65,000 ML/yr to the Shepparton (over 50.000 ML from RiceGrowing) and,(b) 335,000 ML/yr (over 90,000 ML/yr from Channels) to theCalivil and Renmark.Current groundwater use is around 200,000 ML/year.

www.csiro.auOn-farmMurrumbidgee &ColeamballyIrrigation Areas

EnvironmentalBenefit

Soil + groundwater monitoring

0.1 to 3 ML/ha

Irrigation flowmonitoring

0.2 to 2.5 ML/ha

Laser levelling0.1 to 0.4 ML/ha

Lining on-farmchannels

1 to 4% of supply

Relocating rice tosuitable locations

0.1 to 3 ML/ha

ConvertingIrrigationSystems

2.0 to 4.0 ML/ha

_ accessions to watertable

Water Savings

_ subsurface drainage_ surface drainage

Incr

easi

ng in

vest

men

t

$50

- $7,

000

/ML

_ accessions to watertable_ salinity

www.csiro.auEnvironmental

Benefit

Monitoring anddelivery

100 – 200 GL

Closer monitoringand delivery

10 – 50 GL

Piping channels

15 – 70 GL

Reducingevaporation losses

20 – 50 GL

Incentives forefficient water use

10 to 30% increase in water security

Providing ecosystemservices

reduction in rechargeabatement cost

match demand with supply

_ accessions to watertable

Water Savings

production andenvironmental benefits

Incr

easi

ng in

vest

men

t

$500

- $7

,000

/ML

Sealing leakychannels

_ accessions to watertable_ salinity

promotion of water efficientcommunity

Off-farmMurrumbidgee &ColeamballyIrrigation Areas

www.csiro.au

Potential Water Savings (ML/ha)Potential Water Savings (ML/ha)For Converting Flood to Pressurized IrrigationFor Converting Flood to Pressurized IrrigationSystems for Maize in the MurrumbidgeeSystems for Maize in the Murrumbidgee

mm

Water Savings Vary Across the Landscape

www.csiro.au

Channel Seepage Varies Spatially and Temporally

www.csiro.au

-120

-100

-80

-60

-40

-20

0

20

40

60

0 5 10 15 20 25

Year

NP

V (

'000

)

BaselineDecreased BenefitsIncreased Costs

Cost Benefit of Conversion from Contour Bay to CentrePivot ( 3 circles)

www.csiro.au

Capital investment and total water savings byhigh-tech irrigation technologies

0

5000

10000

15000

20000

25000

30000

40905 58305 60610 61810 63630 65385 66135 81821 82121

Total Water Savings (ML)

Ca

pit

al

($/M

L)

Lateral MoveCentre Pivot (towed)Centre Pivot (fixed)Subsurface Drip

www.csiro.auCosts of Saving Channel Losses

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0 8000 16000 24000 32000 40000

Total (ML) Saved

Cap

ital

Co

st(

$/M

L)

Sav

ed

Bentonite Rice Hull Ash Water Sludge

www.csiro.au

Breakeven water chargesfor saved water over 30 years project life

Bentonite

0

50

100

150

200

250

300

350

0 5000 10000 15000 20000 25000 30000 35000 40000

Total Water Saving (ML)

Bre

akev

en P

rice

of

Wat

er (

$)$/

ML

Alternatively every water user pays $30/ML for access to more efficient water supplies

www.csiro.au

Efficiencies in Murrumbidgee Irrigation AreaGL 2000/01

Irrigation water(surface)

Irrigationwater

(groundwater)

Rainfall

Regionalgroundwater

1048

439

26

Off-farmconveyance

90%95%

On-farmconveyance

88%90%

Fieldefficiency

89%95%

Edge offarm

836

946

1162Rootzone

Edge offield

Water useefficiency

Waterproductivity

87%91%

798t/GL836

Economicreturn

$198K/GL$207

1419ET

Shallowground-

water118

1,300,241tonnes

$322m profit

Total watersupply 1630

18 Applyingproject results

Current

75 GL saved +$14m profit

www.csiro.au

Saving Seepage Losses – AustralianContext

ß Canal Lining - $1500 to $4000/ML saved

ß For saving 35000ML capital investment @2000/ML is $ 70 Million

ß Water Productivity is $100-200 per ML

ß Permanent Trading Price ~$ 800-1200 per ML

www.csiro.au

Yellow River

Railway Line

River System

River Bank

Water Savingsin Liuyuankou Irrigation System in China

www.csiro.auCropping Pattern in the LIS

Rice, 4909, 22%

Maize, 8033, 36%

Cotton, 8479, 38%

Soybean, 893, 4%

Summer Crops, Area in ha, % of total crop

Winter Wheat 20,000 ha

Cropping Intensity 1.44

www.csiro.au

0.62

0.41

0.13

0.04

0.16

0

5000

10000

15000

20000

25000

30000

Agriculture Crops Fallow Land Bare Soil Water Others

Land Use Classes

Are

a (H

a)

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

ET

(M

cM)

Area ET

2 September 1990

Actual ET Vs Land Use for LIS, China

www.csiro.au

Net Drawdown After 10 YearsCanal Lining Only

%age WT ET reduction

14.2% on the whole

of the model domain

www.csiro.au

Net Drawdown After 10 YearsCanal Lining and Pumping ARL

%age WT ET reduction

45.3 % on the whole

of the model domain

www.csiro.auCosts of Canal Lining and Water Saving

ß Estimated canal to be lined = 60 km

ß Total Savings 20 MCM

ß Total cost = 76.76 million Yuan

ß Total O&M cost = 1.15 million Yuan/yr

ß Capital Cost of Water Saving per m3=3.8 Yuan

ß Water Productivity per m3=1.35 Yuan

ß Capital Cost/ML=AUS$619

www.csiro.au

25.00

7.36

1.05

4.90

0.86

44.00

16.82

1.15

3.27

0.73

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

IRR (%) NPV (000' Yuan) BCR Pay Back Period Breakeven (ha)

Evaluation Criteria

Val

ues

Diesel Engine (15 HP)Electric Engine (2.2 KW)

Economics of Tubewell (based on most commonly used pumps)

Cost of GW PumpingIn China

Click to edit Master subtitle style

Possible Public-PrivatePartnerships to Water Savings

www.csiro.auThe Concession Deed Framework

ß Concession deed is provided for the regionalwater infrastructure project

ß Joint private and government entities are partyto the agreement

ß Construction and operation: terms andaccountabilities

ß Proportion of saved water allocated for regionaljobs & investment (but bulk of water goes to theenvironment)

ß Environmental obligations costed and includedin concession deed arrangement

www.csiro.auKey Benefits of Concession Approach

ß Allows leveraging of government funds withsignificant private sector investment

ß Risk transfer to private sector (cost of construction+ maintenance obligations)

ß Creates sustainable water savings for bothenvironment and regional development

ß Provides a model for other regional projects

ß Retains government ownership and bulk of water& other assets (revert to government at end ofperiod)

www.csiro.auPotential Hurdles

ß Water infrastructure viewed as aliability, not and asset

ß No natural “sponsor” for projects suchas this

ß Doctrine of allocating all savings toenvironmental/downstream flows

ß Securing agreement for access partof the savings for regional use

ß Institutional issues

www.csiro.au

The Five-Step Feasibility Approach to Water SavingsAimed to Make Australia’s Irrigation to Lead the World

BiophysicalStocks andFlows

1WaterProductivity&EcosystemServices

2 SocialCultural &InstitutionalAspects

3EstablishA BusinessPlan

4 5Implement the Business Plan

In what keyareas doirrigationbusinessesdirectly andindirectlyrely on andimpact waterthroughoutthe valuechain ?

Key Drivers forWater & ResidualCycle

Key Water Uses

Key Water Impacts

What are theecologicalrisks andWUEopportunitiesfor irrigationbusinesses?

WUEOpportunitiesPrioritisedEcologicalRisks and

How thecommunitiesandorganisationscan be bestengaged inpursing thewatersustainabilitystrategy ?

Institutionaland SocialOpportunities

What is thebestbusinesscase forpursuingwatersustainabilitystrategy ?

Business Casefor Action

Setting theStrategic WaterBusinessDirections

A structureddeliverymechanismthat producestools forapplicationelsewhere

Templates forResilientIrrigationBusinesses&Environments

Input to OtherWaterPlanning and ManagementStrategies

New Science for Synchronising Irrigation Systems and their Operating Environments

Business Cases and Delivery Templates

x

Feasibility Step

Click to edit Master subtitle style

Future Challenges

www.csiro.au

Supply ChargesSupply Charges

20052005

Total units of waterTotal units of water

20xx ?20xx ?

X?X?

20yy ?20yy ?

y?y?

True Cost of WaterTrue Cost of Water True Cost of SupplyTrue Cost of Supply

Environmental CostsEnvironmental Costse.g.e.g.1 to 4 Million/EC Credit1 to 4 Million/EC Credit0.5 to 1 $/ML/EC Credit0.5 to 1 $/ML/EC Credit

Demand Curve Demand Curve with Current Useswith Current Uses

Technologies to improve WUE

Managing Irrigation Efficiency at the System Level

14000 MCMConsumptive Use of WaterConsumptive Use of Water

MB, M

C ($/unit of wat er)

MB, M

C ($ /u nit of wate r)

>1000 $/ML

<30 $/ML

www.csiro.au

In irrigation practice - water, costs andknowledge are interlinked

Costs

Water

Knowledge

Decrease water•Increase costs•Increase knowledge

www.csiro.au

• Need to manage the system - salinity,surface and groundwater systems, water quality

• Need to distinguish between salinity impacts onrootzone (crop production) and surface /groundwater systems (environmental impacts)

• Need to understand and manage differencesbetween channel leakage (system problems) andirrigation practice (e.g. rice recharge)

Future Challenges

www.csiro.auPlanning Tools for Future Irrigation Systems

•Tools for reconfiguration of irrigation systems due toland retirement and water trading out in and out ofsystems

•Models for quantifying climate and engineeringinterventions impacts on local and basin water andsalt balances

•Planning and management instruments for costsharing among primary, secondary and tertiarystakeholders

www.csiro.auPolicy, Law and Governance Challenges

• Unified Legal Frameworks for water managementand water savings at different scales which leads toa water efficient society

• Harmonising the Environment and Irrigation andDrainage Acts

• Legislative changes to incorporate positive andnegative externalities of irrigation systems

• Cost sharing instruments between farmers and thewider environment – water leasing for anenvironment as an option for saving water

www.csiro.auConclusions

ß Whole of the system analysis is necessary toidentify “true” water savings for production and theenvironment.

ß Accurate measuring and monitoring systems fromriver to the plant levels are perquisite for realising“true savings”.

ß A top down (catchment to farm level) watersavings approach (“soft approach”) aimed atpublic-private sharing of cost and benefits isnecessary. Leasing environmental water may bean option.

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