Partnerships for improving water and energy access efficiency and sustainability Prepared by UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC) with United Nations University (UNU) and United Nations Industrial Development Organization (UNIDO)

2014 UN-Water Annual International Zaragoza Conference 13-16 January 2014

Table of Contents

1 Introduction

2 The UN and the Water-Energy Nexus

21 The Nexus in the International Agenda

22 What is the UN doing

23 What have we learnt

24 2014 Road map on the Water-Energy nexus

3 Water and Energy Scenarios and Challenges

31 Water and Energy today and projections

32 Water and Energy New and bigger challenges ahead

4 The Water and Energy Nexus OpportunitiesampChoices

41 Feasible but Complex Choices

42 The Water-Energy Nexus Opportunities

43 Trade-offs and complex solutions

5 Making the Case for Partnerships

51 Why Partnerships

52 Challenges for partnerships

53 Policy and Governance what can governments do to create an enabling environment

for partnerships and improve cooperation

6 Building Partnershipsndashpartnerships in practice

61 The Business Case for Partnerships to promote integrated planning and policies

62 Industry Partnerships to Ensure Water and Energy Efficiency and Sustainability

63 Local authorities and Water and Energy Partnerships

64 Partnerships for Policy Research and Innovation

7 Key Lessons on Partnerships

8 References

02

03

Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability 1

1IntroductionIntr

oduc

tion

1

Securingequitableaccessefficiencyandsustainabilityofwaterandenergymayrequirefocusing

onanexaminationofhowpartnershipscanhelpindevelopingappropriateresponsesandmanage

tradeshyoffsidentifysynergiesandmaximizecoshybenefitsforwaterandforenergy

Securingaccessiscentral

Securingaccesstobothwaterandenergyisasocialchallengeregardlessofthestageofeconomic

developmentthelocationortheresourcesavailableWaterandenergyarebothdriversandconstraints

onhumandevelopmentandforthisreasonthechallengesposedbybothalwaysdeserveaprivileged

placeatthetopofthepolicyagenda Thisisparticularlytrueforthepoorestlevelofsocietywhere

fulfillingtheMillenniumDevelopmentgoalsisstillpendingandthelackofadequateaccesstowater

andsanitationandenergysourcestocoverbasicneedsisstillthemainbarriertoovercomingpoverty

andexclusion

AccesstoWampE

WampEcanbelimitingfactorsforsustainableeconomicgrowthwhichistheultimatehopefor

widespreadpovertyreductionUncertainwatersupplyisalsobecomingamajorbusiness

riskforsomeenergysectormanagersSecuringaccesstomodernenergyservicesrepresents

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

amajorchallenge

WampEEfficiency

Aparticularemphasishastobeplacedonincreasingthewateruseefficiencyinenergy

productionndashessentiallyproducingmorekWhperdropofwaterandviceversaManyefficiency

improvementsinutilitiessuchastherepairofleaksrequireregularattentiontoensurea

steadysupplyofnewwaterandenergysavings

WampESustainability

Recognizingthatecosystemsprovideavarietyofservicestothewaterndashenergynexuscan

helpthemanagementoftradeshyoffsandensurethatshortshytermgainsdonotundermine

servicesthatarecriticalforresilienceandlongshytermenvironmentalsustainability

Economicgrowthanddemography-themaindrivers

Thenatureofthechallengemaychangewiththelevelofeconomicdevelopmentbutisfarfrom

eliminatedonceasocietyfindsitswayoutofpovertyGrowingeconomiesandpopulationsare

driversofwaterandenergyscarcityThetransitiontowardsadevelopedsocietyrequiressecure

1 ThisreportisthesummaryofpresentationsanddebatesduringtheUNshyWaterAnnualZaragozaConference2014Thisconference

waspreparatoryofWorldWaterDay2014focusedonthenexusofwaterandenergyThisconferencewaspreparatoryofWorldWater

Day2014focusingonthenexusofwaterandenergyItwascoshyorganisedwiththeUnitedNationsUniversity(UNU)theUnitedNations

IndustrialDevelopmentOrganization(UNIDO)andinpartnershipwithUNESCOUNECEWBUNEPWWAPUNESCAPAquafedWfWPWCCE

ICLEIandtheGovernmentofSpaintheEbroRiverBasinAuthorityandtheMunicipalityofZaragoza

andadequateaccesstowaterandenergybothforthepeopleandforpracticallyallthegoodsand

servicesinwhichwaterandenergyinterveneasessentialproductioninputsInfacteconomicgrowth

anddemographywillremainasthemaindriversofwaterandenergydemandsinthenearfuture

Maintainingadvancesrequiresdecouplinggrowthfromuseofresources

Recognizingthescarcityofwaterandenergyimplythatmaintainingtheadvancesalreadyobtained

requirescurbingnaturalresourcesscarcitytrendsandpreservingtheabilityofallwaterandenergy

relatedecosystemstocontinueprovidingthevaluableenvironmentalservicesonwhichhumans

andourentireproductionsystemdependsonAtsomepointanyindividualregioncountryand

eventheplanetasawholewillneedtorecognizethatanyfeasibleimprovementdependsonthe

abilitytodecouplefurthereconomicadvancefromtheadditionalpressuresovernaturalfreshwater

andenergysourcesandthereductionofwastewatereffluentsandenergyrelatedemissionsinto

theenvironment

Asustainablefutureispossible

AsustainablefutureispossiblewithintherangeoftheresourcesavailableTheinventoryandthe

evaluationofbestwaterandenergytechnologiesavailableshowsthatthereisroomforimprovement

inhumandevelopmentaspirationsthatarecompatiblewithreversingnaturaldegradationtrends

andwiththebuildingupofamoreadaptableandmoreresilientsocietyHowevertherelative

optimismofthisconclusioncannotshadethemagnitudeofthechallengeoftransformingthe

promiseintoareality

Recognizinghowtheworldrsquoswaterandenergysystemsareinextricablylinked

Oneessentialconditiontotakeadvantageoftheseopportunitiesconsistsofrecognizinghowthe

worldrsquoswaterandenergysystemsareinextricablylinkedSignificantamountsofwaterareneeded

inalmostallenergyprocesses(fromgeneratinghydropowercoolingandotherpurposesinthermal

powerplantstoextractingandprocessingfuels)Conventionalenergygenerationrequiresthe

mobilizationandutilizationofconsiderablewaterresourcesparticularlyforcoolingfornuclear

andthermalenergyandreservoirstorageanddrivingturbinesforhydroelectricityPowergeneration

isparticularlysensitivetowateravailabilityandseveralpowerplantshavebeenforcedtoshut

downduetolackofcoolingwaterorhighwatertemperatures(seechapter3below)

EnergyneedsWater

bull90ofpowergenerationworldwideiswatershyintensive

bullThereisanincreasingriskofconflictbetweenpowergenerationotherwaterusersand

environmentalconsiderations

bullEnergyproductionaccountsforroughly15ofallwaterwithdrawalsorroughly75of

allindustrialwaterwithdrawals

bullThermalpowergenerationaccountsforroughly80ofglobalelectricityproductionand

isresponsibleforroughlyonehalfofallwaterwithdrawalsinTheUnitedStatesandin

severalEuropeancountries

bullHydroelectricitywhichcanalsorequireabundantwatersuppliesaccountsforabout15

ofglobalelectricityproduction

Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen

04

Table of Contents

1 Introduction

2 The UN and the Water-Energy Nexus

21 The Nexus in the International Agenda

22 What is the UN doing

23 What have we learnt

24 2014 Road map on the Water-Energy nexus

3 Water and Energy Scenarios and Challenges

31 Water and Energy today and projections

32 Water and Energy New and bigger challenges ahead

4 The Water and Energy Nexus OpportunitiesampChoices

41 Feasible but Complex Choices

42 The Water-Energy Nexus Opportunities

43 Trade-offs and complex solutions

5 Making the Case for Partnerships

51 Why Partnerships

52 Challenges for partnerships

53 Policy and Governance what can governments do to create an enabling environment

for partnerships and improve cooperation

6 Building Partnershipsndashpartnerships in practice

61 The Business Case for Partnerships to promote integrated planning and policies

62 Industry Partnerships to Ensure Water and Energy Efficiency and Sustainability

63 Local authorities and Water and Energy Partnerships

64 Partnerships for Policy Research and Innovation

7 Key Lessons on Partnerships

8 References

02

03

Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability 1

1IntroductionIntr

oduc

tion

1

Securingequitableaccessefficiencyandsustainabilityofwaterandenergymayrequirefocusing

onanexaminationofhowpartnershipscanhelpindevelopingappropriateresponsesandmanage

tradeshyoffsidentifysynergiesandmaximizecoshybenefitsforwaterandforenergy

Securingaccessiscentral

Securingaccesstobothwaterandenergyisasocialchallengeregardlessofthestageofeconomic

developmentthelocationortheresourcesavailableWaterandenergyarebothdriversandconstraints

onhumandevelopmentandforthisreasonthechallengesposedbybothalwaysdeserveaprivileged

placeatthetopofthepolicyagenda Thisisparticularlytrueforthepoorestlevelofsocietywhere

fulfillingtheMillenniumDevelopmentgoalsisstillpendingandthelackofadequateaccesstowater

andsanitationandenergysourcestocoverbasicneedsisstillthemainbarriertoovercomingpoverty

andexclusion

AccesstoWampE

WampEcanbelimitingfactorsforsustainableeconomicgrowthwhichistheultimatehopefor

widespreadpovertyreductionUncertainwatersupplyisalsobecomingamajorbusiness

riskforsomeenergysectormanagersSecuringaccesstomodernenergyservicesrepresents

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

amajorchallenge

WampEEfficiency

Aparticularemphasishastobeplacedonincreasingthewateruseefficiencyinenergy

productionndashessentiallyproducingmorekWhperdropofwaterandviceversaManyefficiency

improvementsinutilitiessuchastherepairofleaksrequireregularattentiontoensurea

steadysupplyofnewwaterandenergysavings

WampESustainability

Recognizingthatecosystemsprovideavarietyofservicestothewaterndashenergynexuscan

helpthemanagementoftradeshyoffsandensurethatshortshytermgainsdonotundermine

servicesthatarecriticalforresilienceandlongshytermenvironmentalsustainability

Economicgrowthanddemography-themaindrivers

Thenatureofthechallengemaychangewiththelevelofeconomicdevelopmentbutisfarfrom

eliminatedonceasocietyfindsitswayoutofpovertyGrowingeconomiesandpopulationsare

driversofwaterandenergyscarcityThetransitiontowardsadevelopedsocietyrequiressecure

1 ThisreportisthesummaryofpresentationsanddebatesduringtheUNshyWaterAnnualZaragozaConference2014Thisconference

waspreparatoryofWorldWaterDay2014focusedonthenexusofwaterandenergyThisconferencewaspreparatoryofWorldWater

Day2014focusingonthenexusofwaterandenergyItwascoshyorganisedwiththeUnitedNationsUniversity(UNU)theUnitedNations

IndustrialDevelopmentOrganization(UNIDO)andinpartnershipwithUNESCOUNECEWBUNEPWWAPUNESCAPAquafedWfWPWCCE

ICLEIandtheGovernmentofSpaintheEbroRiverBasinAuthorityandtheMunicipalityofZaragoza

andadequateaccesstowaterandenergybothforthepeopleandforpracticallyallthegoodsand

servicesinwhichwaterandenergyinterveneasessentialproductioninputsInfacteconomicgrowth

anddemographywillremainasthemaindriversofwaterandenergydemandsinthenearfuture

Maintainingadvancesrequiresdecouplinggrowthfromuseofresources

Recognizingthescarcityofwaterandenergyimplythatmaintainingtheadvancesalreadyobtained

requirescurbingnaturalresourcesscarcitytrendsandpreservingtheabilityofallwaterandenergy

relatedecosystemstocontinueprovidingthevaluableenvironmentalservicesonwhichhumans

andourentireproductionsystemdependsonAtsomepointanyindividualregioncountryand

eventheplanetasawholewillneedtorecognizethatanyfeasibleimprovementdependsonthe

abilitytodecouplefurthereconomicadvancefromtheadditionalpressuresovernaturalfreshwater

andenergysourcesandthereductionofwastewatereffluentsandenergyrelatedemissionsinto

theenvironment

Asustainablefutureispossible

AsustainablefutureispossiblewithintherangeoftheresourcesavailableTheinventoryandthe

evaluationofbestwaterandenergytechnologiesavailableshowsthatthereisroomforimprovement

inhumandevelopmentaspirationsthatarecompatiblewithreversingnaturaldegradationtrends

andwiththebuildingupofamoreadaptableandmoreresilientsocietyHowevertherelative

optimismofthisconclusioncannotshadethemagnitudeofthechallengeoftransformingthe

promiseintoareality

Recognizinghowtheworldrsquoswaterandenergysystemsareinextricablylinked

Oneessentialconditiontotakeadvantageoftheseopportunitiesconsistsofrecognizinghowthe

worldrsquoswaterandenergysystemsareinextricablylinkedSignificantamountsofwaterareneeded

inalmostallenergyprocesses(fromgeneratinghydropowercoolingandotherpurposesinthermal

powerplantstoextractingandprocessingfuels)Conventionalenergygenerationrequiresthe

mobilizationandutilizationofconsiderablewaterresourcesparticularlyforcoolingfornuclear

andthermalenergyandreservoirstorageanddrivingturbinesforhydroelectricityPowergeneration

isparticularlysensitivetowateravailabilityandseveralpowerplantshavebeenforcedtoshut

downduetolackofcoolingwaterorhighwatertemperatures(seechapter3below)

EnergyneedsWater

bull90ofpowergenerationworldwideiswatershyintensive

bullThereisanincreasingriskofconflictbetweenpowergenerationotherwaterusersand

environmentalconsiderations

bullEnergyproductionaccountsforroughly15ofallwaterwithdrawalsorroughly75of

allindustrialwaterwithdrawals

bullThermalpowergenerationaccountsforroughly80ofglobalelectricityproductionand

isresponsibleforroughlyonehalfofallwaterwithdrawalsinTheUnitedStatesandin

severalEuropeancountries

bullHydroelectricitywhichcanalsorequireabundantwatersuppliesaccountsforabout15

ofglobalelectricityproduction

Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen

04

03

Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability 1

1IntroductionIntr

oduc

tion

1

Securingequitableaccessefficiencyandsustainabilityofwaterandenergymayrequirefocusing

onanexaminationofhowpartnershipscanhelpindevelopingappropriateresponsesandmanage

tradeshyoffsidentifysynergiesandmaximizecoshybenefitsforwaterandforenergy

Securingaccessiscentral

Securingaccesstobothwaterandenergyisasocialchallengeregardlessofthestageofeconomic

developmentthelocationortheresourcesavailableWaterandenergyarebothdriversandconstraints

onhumandevelopmentandforthisreasonthechallengesposedbybothalwaysdeserveaprivileged

placeatthetopofthepolicyagenda Thisisparticularlytrueforthepoorestlevelofsocietywhere

fulfillingtheMillenniumDevelopmentgoalsisstillpendingandthelackofadequateaccesstowater

andsanitationandenergysourcestocoverbasicneedsisstillthemainbarriertoovercomingpoverty

andexclusion

AccesstoWampE

WampEcanbelimitingfactorsforsustainableeconomicgrowthwhichistheultimatehopefor

widespreadpovertyreductionUncertainwatersupplyisalsobecomingamajorbusiness

riskforsomeenergysectormanagersSecuringaccesstomodernenergyservicesrepresents

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

amajorchallenge

WampEEfficiency

Aparticularemphasishastobeplacedonincreasingthewateruseefficiencyinenergy

productionndashessentiallyproducingmorekWhperdropofwaterandviceversaManyefficiency

improvementsinutilitiessuchastherepairofleaksrequireregularattentiontoensurea

steadysupplyofnewwaterandenergysavings

WampESustainability

Recognizingthatecosystemsprovideavarietyofservicestothewaterndashenergynexuscan

helpthemanagementoftradeshyoffsandensurethatshortshytermgainsdonotundermine

servicesthatarecriticalforresilienceandlongshytermenvironmentalsustainability

Economicgrowthanddemography-themaindrivers

Thenatureofthechallengemaychangewiththelevelofeconomicdevelopmentbutisfarfrom

eliminatedonceasocietyfindsitswayoutofpovertyGrowingeconomiesandpopulationsare

driversofwaterandenergyscarcityThetransitiontowardsadevelopedsocietyrequiressecure

1 ThisreportisthesummaryofpresentationsanddebatesduringtheUNshyWaterAnnualZaragozaConference2014Thisconference

waspreparatoryofWorldWaterDay2014focusedonthenexusofwaterandenergyThisconferencewaspreparatoryofWorldWater

Day2014focusingonthenexusofwaterandenergyItwascoshyorganisedwiththeUnitedNationsUniversity(UNU)theUnitedNations

IndustrialDevelopmentOrganization(UNIDO)andinpartnershipwithUNESCOUNECEWBUNEPWWAPUNESCAPAquafedWfWPWCCE

ICLEIandtheGovernmentofSpaintheEbroRiverBasinAuthorityandtheMunicipalityofZaragoza

andadequateaccesstowaterandenergybothforthepeopleandforpracticallyallthegoodsand

servicesinwhichwaterandenergyinterveneasessentialproductioninputsInfacteconomicgrowth

anddemographywillremainasthemaindriversofwaterandenergydemandsinthenearfuture

Maintainingadvancesrequiresdecouplinggrowthfromuseofresources

Recognizingthescarcityofwaterandenergyimplythatmaintainingtheadvancesalreadyobtained

requirescurbingnaturalresourcesscarcitytrendsandpreservingtheabilityofallwaterandenergy

relatedecosystemstocontinueprovidingthevaluableenvironmentalservicesonwhichhumans

andourentireproductionsystemdependsonAtsomepointanyindividualregioncountryand

eventheplanetasawholewillneedtorecognizethatanyfeasibleimprovementdependsonthe

abilitytodecouplefurthereconomicadvancefromtheadditionalpressuresovernaturalfreshwater

andenergysourcesandthereductionofwastewatereffluentsandenergyrelatedemissionsinto

theenvironment

Asustainablefutureispossible

AsustainablefutureispossiblewithintherangeoftheresourcesavailableTheinventoryandthe

evaluationofbestwaterandenergytechnologiesavailableshowsthatthereisroomforimprovement

inhumandevelopmentaspirationsthatarecompatiblewithreversingnaturaldegradationtrends

andwiththebuildingupofamoreadaptableandmoreresilientsocietyHowevertherelative

optimismofthisconclusioncannotshadethemagnitudeofthechallengeoftransformingthe

promiseintoareality

Recognizinghowtheworldrsquoswaterandenergysystemsareinextricablylinked

Oneessentialconditiontotakeadvantageoftheseopportunitiesconsistsofrecognizinghowthe

worldrsquoswaterandenergysystemsareinextricablylinkedSignificantamountsofwaterareneeded

inalmostallenergyprocesses(fromgeneratinghydropowercoolingandotherpurposesinthermal

powerplantstoextractingandprocessingfuels)Conventionalenergygenerationrequiresthe

mobilizationandutilizationofconsiderablewaterresourcesparticularlyforcoolingfornuclear

andthermalenergyandreservoirstorageanddrivingturbinesforhydroelectricityPowergeneration

isparticularlysensitivetowateravailabilityandseveralpowerplantshavebeenforcedtoshut

downduetolackofcoolingwaterorhighwatertemperatures(seechapter3below)

EnergyneedsWater

bull90ofpowergenerationworldwideiswatershyintensive

bullThereisanincreasingriskofconflictbetweenpowergenerationotherwaterusersand

environmentalconsiderations

bullEnergyproductionaccountsforroughly15ofallwaterwithdrawalsorroughly75of

allindustrialwaterwithdrawals

bullThermalpowergenerationaccountsforroughly80ofglobalelectricityproductionand

isresponsibleforroughlyonehalfofallwaterwithdrawalsinTheUnitedStatesandin

severalEuropeancountries

bullHydroelectricitywhichcanalsorequireabundantwatersuppliesaccountsforabout15

ofglobalelectricityproduction

Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen

04

andadequateaccesstowaterandenergybothforthepeopleandforpracticallyallthegoodsand

servicesinwhichwaterandenergyinterveneasessentialproductioninputsInfacteconomicgrowth

anddemographywillremainasthemaindriversofwaterandenergydemandsinthenearfuture

Maintainingadvancesrequiresdecouplinggrowthfromuseofresources

Recognizingthescarcityofwaterandenergyimplythatmaintainingtheadvancesalreadyobtained

requirescurbingnaturalresourcesscarcitytrendsandpreservingtheabilityofallwaterandenergy

relatedecosystemstocontinueprovidingthevaluableenvironmentalservicesonwhichhumans

andourentireproductionsystemdependsonAtsomepointanyindividualregioncountryand

eventheplanetasawholewillneedtorecognizethatanyfeasibleimprovementdependsonthe

abilitytodecouplefurthereconomicadvancefromtheadditionalpressuresovernaturalfreshwater

andenergysourcesandthereductionofwastewatereffluentsandenergyrelatedemissionsinto

theenvironment

Asustainablefutureispossible

AsustainablefutureispossiblewithintherangeoftheresourcesavailableTheinventoryandthe

evaluationofbestwaterandenergytechnologiesavailableshowsthatthereisroomforimprovement

inhumandevelopmentaspirationsthatarecompatiblewithreversingnaturaldegradationtrends

andwiththebuildingupofamoreadaptableandmoreresilientsocietyHowevertherelative

optimismofthisconclusioncannotshadethemagnitudeofthechallengeoftransformingthe

promiseintoareality

Recognizinghowtheworldrsquoswaterandenergysystemsareinextricablylinked

Oneessentialconditiontotakeadvantageoftheseopportunitiesconsistsofrecognizinghowthe

worldrsquoswaterandenergysystemsareinextricablylinkedSignificantamountsofwaterareneeded

inalmostallenergyprocesses(fromgeneratinghydropowercoolingandotherpurposesinthermal

powerplantstoextractingandprocessingfuels)Conventionalenergygenerationrequiresthe

mobilizationandutilizationofconsiderablewaterresourcesparticularlyforcoolingfornuclear

andthermalenergyandreservoirstorageanddrivingturbinesforhydroelectricityPowergeneration

isparticularlysensitivetowateravailabilityandseveralpowerplantshavebeenforcedtoshut

downduetolackofcoolingwaterorhighwatertemperatures(seechapter3below)

EnergyneedsWater

bull90ofpowergenerationworldwideiswatershyintensive

bullThereisanincreasingriskofconflictbetweenpowergenerationotherwaterusersand

environmentalconsiderations

bullEnergyproductionaccountsforroughly15ofallwaterwithdrawalsorroughly75of

allindustrialwaterwithdrawals

bullThermalpowergenerationaccountsforroughly80ofglobalelectricityproductionand

isresponsibleforroughlyonehalfofallwaterwithdrawalsinTheUnitedStatesandin

severalEuropeancountries

bullHydroelectricitywhichcanalsorequireabundantwatersuppliesaccountsforabout15

ofglobalelectricityproduction

Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen

04

05

Converselythewatersectorneedsenergyndashmainlyintheformofelectricityndashtoextracttreatand

transportwaterThedegradationofwatersourcesimpliesincreasingamountsofenergytopump

thesameamountofwaterfromdeeperaquifersorfarthersourcesAnyalternativetoreallocate

watertoitsmoreproductiveusesmightrequireenergyfortransportandtoadaptwaterquality

toitsnewusesandplacesIntr

oduc

tion

1

Waterneedsenergy

bullAbout8oftheglobalenergygenerationisusedforpumpingtreatingandtransportingwater

bullWaterbeingdenserequiresmuchenergytomoveitWatertransportanddistributionare

energyintensiveprocessesReallocatingwaterthroughusesandplacesmightincrease

thevalueperdropbutincreasetheuseofenergy

bullDrinkingwaterformunicipalsystemstypicallyrequiresextensivetreatmentandonceit

becomeswastewateritrequirestreatingagainbeforeitcanbedischargedtotheenvironment

Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

WaterneedsenergyenergyneedswaterandhumandevelopmentneedsbothOneofthemainrisks

inthesearchforasustainabledevelopmentpathcomesfromignoringthebasicfactthatthereis

nootheroptiontohandlingthewaterandenergychallengesinanintegratedmannerTheserisks

arealreadypresentinsomeofthemostrelevantalternativestofacewaterandenergychallenges

WaterstressmightputadditionalpressureovertoenergyGoingfurtheranddeepertoobtainwater

aswaterbecomesscarcerequiresmoreenergyfortransportandpumpingThenonshyconventional

sourcesthatmaycompensateforthelackoffreshwatermayrequireenergyintensivetransformation

processessuchasdesalinationofseaandbrackishwaterorregenerationofwastewater

Growingdemandforlimitedwatersuppliesputsincreasingpressureonwaterintensiveenergy

producerstoseekalternativeapproachesespeciallyinareaswhereenergyiscompetingwithother

majorwaterusers(agriculturemanufacturingdrinkingwaterandsanitationservicesforcities)

andwherewaterusesmayberestrictedtomaintainhealthyecosystems

AccesstoenergymightworsenthewatercrisisUncertaintiesrelatedtothegrowthandevolution

ofglobalenergyproduction(egviagrowthinunconventionalsourcesofgasandoilorbiofuels)

andthepriceofenergycancreatesignificantriskstowaterresourcesandotherusersTheincreasing

momentumintheproductionofbiofuelshascreatedagrowingdemandonwaterresourcesEven

amodest5shareofbiofuelsinroadtransportdemand(aspredictedbytheInternationalEnergy

Agencyfor2030)couldincreasethewaterdemandforirrigationbyasmuchas20(WWDR2012)

Avoidresponsesthatfixoneproblemattheexpenseofworseningtheother

Themultipleinterdependenciesbetweenwaterandenergymeanthatanyresponseneedstotackle

thetwosectorsinanintegratedwayIgnoranceofthesebasicfactsmayleadtoresponsesthattry

toadoptalternativesthatfixoneproblemattheexpenseofworseningtheotherandthatmightfail

intheend(seeboxbelow)

Coordinatedresponsescantakeadvantageofthesynergiesbetweenwaterandenergy

Insteadofignoringtheinterdependenciescoordinatedresponsescantakeadvantageofthesynergies

betweenwaterandenergySavingenergymeanssavingwaterandviceversaEnhancingthe

efficiencyinthewaythatwaterisusedtranslatesintolowerpressuresoverfreshwatersources

butalsointoareduceddemandofenergyforwatertreatmentpumpingandtransportandtheninto

evenlesswaterrequiredtoproduceenergyMovingtowardslesswaterintensiveenergysources

andlessenergyintensivewatersourcessavingwaterandenergyinanyproductionandconsumption

processreallocatingwaterandenergytotheirmorevaluableusesareallalternativesthattake

advantageofthesesynergiesinopeningtheoptionofproducingmorewithless

Theriskofanon-coordinatedwaterandenergyresponse

bullDesalinatedwaterinvolvestheuseofatleast752TWhyearwhichisabout04ofglobal

electricityconsumption

bullModernbiofuelsrepresentonly08ofglobalfinalenergyconsumptionbuttheircontribution

toenergysupplyisexpectedtogrowrapidlyIfbioenergyfeedstockisproducedonirrigated

landsthenthepotentialimpactofbiofuelsonwaterresourcesisalsoofmajorconcern

bullUnconventionaloil(egoiltarsands)andgasproduction(eglsquofrackingrsquo)aregenerallymore

waterintensivethanconventionaloilandgasproduction

Sourcehttpwwwunwaterorgtopicswatershyandshyenergyen

Partnershipsfornexussolutions

Nexussolutionscanandhavebeenimplementedbybuildingpartnershipstoallowactingtogether

andsupportingfindingandimplementingeffectiveactionsBuildingpartnershipsconsistsof

makingagreementstoreapthebenefitsofcooperationinthewaterandenergysectorNotonlyare

thechallengesinvolvedintheWaterandEnergyNexusbeyondthescopeofanyindividualpublic

authoritybusinessorstakeholderbutactionscanbecoordinatedinsuchawaythatthewholeis

greaterthanthesumofitsparts

Partnershipsmightinvolvedifferentactorsfromtheenergyandwatercommunityincluding

businessesdifferentlevelsofgovernmentcivilsocietyacademiaandallthosewithastakein

findingthewaytowardsasustainablesocialresponsetothewaterandenergychallengesWhile

recognizingthediversityofperceptionsinterestsandrolesallpartnershipsareinagreementto

cooperateinreachingamutualbenefit

MutualbenefitsareessentialtomakepartnershipsworkforsustainabledevelopmentForinstance

acrediblepolicytoincreasewatersecurityinthelongtermcanreducetheriskofinvestmentsin

theenergysectorandthesimultaneousincreaseinbothwaterandenergysecuritycanresultin

importantcompetitiveadvantagesfortheentirenationaleconomyAlongtermwaterandenergy

strategywithcleartargetsonthewaterandenergyportfolioaprospectiveroleforrenewableenergy

andnonshyconventionalwatersourcesmightspeedupthediffusionofthebestavailabletechnologies

andfosterinnovationTheseareonlysomeofthesynergiesthatpartnershipscancreateinorder

toensureasustainabledevelopment

ButpartnershipsrequireanenablingenvironmentInstitutionsandtechnologiesstillfavorthe

mutualignoranceofwaterandenergyissuesbothinbusinessandpolicymakingWaterrisksare

notadequatelyconsideredintheassessmentofenergyprojectsandplansandenergyissuesstill

playamarginalroleifanyinwaterprojectsappraisalandriverbasinmanagementplans

PartnershipsmighthavemultiplefunctionsTheymayservetointegratepoliciesandbroadenthe

scopeandenhancetheeffectivenessofbothwaterandenergyplanningbutalsotocoordinate

differentsectoralpoliciessuchaslandplanningruraldevelopmentnatureconservancy

manufacturingetcallwithinasustainableuseofwaterandenergy

06

07

Effectivepartnershipsaresocialconstructionsthatadvancethroughmutualcommitmentandtrust

andwhensuccessfulmightmakeimportantcontributionstobothwaterandenergygovernance

Theyfavortransparencyinclusiveandlegitimatedecisionsandhelptoprovidebetterregulations

andenablinginstitutionalframeworksamongotheradvantages

PartnershipsarealsoknowledgealliancesTheyallowIdentifyingopportunitiestoimprovewater

andenergyaccessefficiencyandsustainabilityaswellasfindingthewaytoimplementwinshywin

solutionsthataremoresustainableTheyallowlearningfromthewaterandenergycommunities

theyenhancetheabilityofanticipatingrisksandlearningfromfailureaswellasimprovingthe

chancesofsuccessOnabroaderscalepartnershipsallowbuildingasharedvisionofthechallenges

involvedinthejointmanagementofwaterandenergyandpavethewaytoenhancingtheacceptability

ofthetoughdecisionsthatneedtobetakenintheshorttermtocomebacktoasustainabletrend

inthemediumandthelongterm

2TheUNandtheWaterndashEnergyNexus

21TheNexusintheInternationalAgenda

SincetheBonnNexusConference(TheWaterEnergyandFoodSecurityNexusSolutionsforthe

GreenEconomy16shy18November2011)theUnitedNationshastriggeredthedialoguetopromote

findingsustainabledevelopmentpathwaysbyincreasingthepolicycoherencebetweentheareas

ofwaterandenergy

TheUNsystemndashworkingcloselywithitsinternationalpartnersanddonorsndashiscollectivelybringing

itsattentiontothewatershyenergynexusParticularattentionisbeingpaidtoidentifyingbestpractices

thatcanmakeawatershyandenergyshyefficientlsquoGreenIndustryrsquoarealityseveralmethodologiesare

atplayinwhichindustrialproductivitycanbeincreasedwhilereducingwaterandenergyuse

TheUnitedNationsConferenceonSustainableDevelopmentheldinRiodeJaneiroinJune2012

markedanimportantmilestoneTheUNbroughttogethergovernmentsinternationalinstitutions

andmajorgroupstoagreeonarangeofsmartmeasuresthatcanreducepovertywhilepromoting

decentjobscleanenergyandamoresustainableandfairuseofresourcesUnderthisbasissecuring

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

waterandenergyisnowseenasakeyprioritywithinthenewandemergingagendafortheSustainable

DevelopmentGoalsandthepostshy2015developmentdialogue

22WhatistheUNdoing

TopursuetheseobjectivestheUNhasorganisedthefollowingactions

Decade of Sustainable Energy for All (2014-2024)

ThroughResolution67215theUnitedNationsGeneralAssemblydeclaredthedecade2014shy2024

astheDecadeofSustainableEnergyforAllTheDecadeunderscorestheimportanceofenergy

issuesforsustainabledevelopmentandfortheelaborationofthepostshy2015developmentagenda

Ithighlightstheimportanceofimprovingenergyefficiencyincreasingtheshareofrenewableenergy

andcleanerandenergyshyefficienttechnologiesEnhancingtheefficiencyoftheenergymodelswould

reducethestressonwater

Sustainable Energy for All initiative

TheSustainableEnergyforAllinitiativeisamultishystakeholderpartnershipbetweengovernmentsthe

privatesectorandcivilsocietyLaunchedbytheUNSecretaryshyGeneralin2011ithasthreeinterlinked

objectivestobeachievedby2030(1)Ensureuniversalaccesstomodernenergyservices(2)Double

2T

heU

Na

ndt

heW

ater

Ene

rgy

Nex

us

theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe

globalenergymix

International Decade for Action lsquoWater for Lifersquo 2005-2015

TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil

internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering

cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg

PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe

achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies

thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity

andqualityandincludemeasurestoimprovesanitation

World Water Day

WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe

importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources

EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater

andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment

Organization(UNIDO)areleadingofficialcelebrations

UN-Energy

Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency

collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe

UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree

thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency

United Nations Industrial Development Organization (UNIDO)

UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial

developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand

energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational

industrialcooperationtowardssustainabledevelopment

United Nations Environment Programme (UNEP)

UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing

environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand

bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof

publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother

internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway

thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation

ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental

Organizations(NGOs)

World Bankrsquos Thirsty Energy initiative

Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively

theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp

governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral

planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies

synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe

importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork

inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource

managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore

broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending

08

09

2T

heU

Na

ndt

heW

ater

Ene

rgy

Nex

usPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry

Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson

buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe

energyshywaterchallengeistoolargeforanyorganizationtotacklealone

23Whathavewelearnt

Thesearethemainresultsofthisprocesssofar

bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater

andenergydemand

bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing

oftheseamongstakeholderswithcompetingpriorities

bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter

recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction

bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom

reversingunsustainabletrends

bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders

involvedinimprovingpolicycoherenceacrosssectors

bullBestpracticeinnovationsandsolutionsarebeingdisseminated

242014Roadmaponthewater-energynexus

TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited

NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has

addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD

aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto

solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference

addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency

andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater

WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014

onWaterandEnergylaunched

TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia

andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully

filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy

infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota

newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement

planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave

alloweddeliveryofanexponentiallysuccessfulservice

TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat

aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor

integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy

nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess

ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy

systems

The2014Roadmap

bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS

TheWatershyEnergyNexus(ThirstyEnergy)

bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining

EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia

bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo

ChapelHillUSA

bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay

bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement

ldquoToolsForActionrdquo

bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy

FoodNexusrdquo

bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014

bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater

bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium

bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo

10

11

3W

ater

and

Ene

rgy

Scen

ario

san

dC

halle

nges 3WaterandEnergyScenariosand

Challenges

31WaterandEnergytodayandprojections

Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact

basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy

demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective

scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup

prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives

andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater

andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto

endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy

responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa

sustainablewaterandenergyfuture

ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment

ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational

organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible

representationofourcommonfuture

Water and energy access today

WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable

provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources

interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor

thetransitiontowardshigherlevelsofeconomicandsocialprogress

Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand

communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial

andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments

ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities

foreducationandemploymentresultinginoverallnationaleconomicdevelopment

Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence

ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso

criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels

Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof

bothandtherebyconservingenergy

Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable

developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea

numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater

sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe

alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread

povertyreduction

TheMilleniumDevelopmentGoalsOutstandingSuccesshellip

bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking

watersources

bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990

to89percentin2010

bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin

2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved

watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing

SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml

hellipandneworremainingchallenges

bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater

bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica

bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld

populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)

bull28billionliveinareasofhighwaterstress(WWAP2012)

Futurescenarioswaterandenergydemands

UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits

currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill

stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe

combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater

demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)

Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby

2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85

increaseinthewaterconsumption(EA2012)

Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater

resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable

theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight

onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater

scarcity

Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands

Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight

alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity

degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis

littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion

of people living in water stressed areas is expected to increase from 25 to 23 (WRI)

Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters

(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained

demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are

forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25

respectively(2030WRG)

12

theglobalrateofimprovementinenergyefficiency(3)Doubletheshareofrenewableenergyinthe

globalenergymix

International Decade for Action lsquoWater for Lifersquo 2005-2015

TheUNInternationalDecadeforActionWaterforLife2005shy2015aimstopromoteeffortstofulfil

internationalcommitmentsmadeonwaterandwatershyrelatedissuesby2015Focusisonfurthering

cooperationatalllevelssothatthewatershyrelatedgoalsoftheMillenniumDeclarationtheJohannesburg

PlanofImplementationoftheWorldSummitforSustainableDevelopmentandAgenda21canbe

achievedThechallengeoftheDecadeistofocusattentiononactionshyorientedactivitiesandpolicies

thatensurethelongshytermsustainablemanagementofwaterresourcesintermsofbothquantity

andqualityandincludemeasurestoimprovesanitation

World Water Day

WorldWaterDay(WWD)isheldannuallyon22Marchasameansoffocusingattentiononthe

importanceoffreshwaterandadvocatingforthesustainablemanagementoffreshwaterresources

EachyearWorldWaterDayhighlightsaspecificaspectoffreshwaterIn2014thefocusisonwater

andenergyissuesTheUnitedNationsUniversity(UNU)andtheUnitedNationsIndustrialDevelopment

Organization(UNIDO)areleadingofficialcelebrations

UN-Energy

Establishedin2004UNshyEnergywasinitiatedasamechanismtopromotecoherenceandintershyagency

collaborationinthefieldofenergyandtodevelopincreasedcollectiveengagementbetweenthe

UnitedNationsandotherkeyexternalstakeholdersUNshyEnergysworkisorganizedaroundthree

thematicclusters(1)Energyaccess(2)Renewableenergyand(3)Energyefficiency

United Nations Industrial Development Organization (UNIDO)

UNIDOsprimaryobjectiveisthepromotionandaccelerationofintegratedandsustainableindustrial

developmentindevelopingcountriesusingsustainablepracticesprimarilyfocusedonwaterand

energysecurityandcountrieswitheconomiesintransitionandthepromotionofinternational

industrialcooperationtowardssustainabledevelopment

United Nations Environment Programme (UNEP)

UNEPcoordinatesUnitedNationsenvironmentalactivitiesassistingdevelopingcountriesinimplementing

environmentallysoundpoliciesandpracticesTheWatershyEnergyNexusitsinterdependenciesand

bestpracticesrelatedtoenergyandwatersecurityhavebeenhighlightedinitswiderangeof

publicationsUNEPhasplayedasignificantroleindevelopinginternationalwaterenergyandother

internationalconventionspromotingenvironmentalscienceandinformationandillustratingtheway

thosecanbeimplementedinconjunctionwithpolicyworkingonthedevelopmentandimplementation

ofpolicywithnationalgovernmentsandregionalinstitutionsinconjunctionwithNonshyGovernmental

Organizations(NGOs)

World Bankrsquos Thirsty Energy initiative

Tosupportcountriesrsquoeffortstoaddresschallengesinenergyandwatermanagementproactively

theWorldBankhasembarkedonaglobalinitiativethirstyenergyThirstyEnergyaimstohelp

governmentsprepareforanuncertainfutureandbreakdisciplinarysilosthatpreventcrossshysectoral

planningWiththeenergysectorasanentrypointthirstyenergyquantifiestradeshyoffsandidentifies

synergiesbetweenwaterandenergyresourcemanagementThirstyenergydemonstratesthe

importanceofcombinedenergyandwatermanagementapproachesthroughdemandshybasedwork

inseveralcountriesthusprovidingexamplesofhowevidenceshybasedoperationaltoolsinresource

managementcanenhancesustainabledevelopmentThiscreatedknowledgewillbesharedmore

broadlywithothercountriesfacingsimilarchallengesThirstyEnergytailorsapproachesdepending

08

09

2T

heU

Na

ndt

heW

ater

Ene

rgy

Nex

usPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry

Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson

buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe

energyshywaterchallengeistoolargeforanyorganizationtotacklealone

23Whathavewelearnt

Thesearethemainresultsofthisprocesssofar

bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater

andenergydemand

bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing

oftheseamongstakeholderswithcompetingpriorities

bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter

recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction

bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom

reversingunsustainabletrends

bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders

involvedinimprovingpolicycoherenceacrosssectors

bullBestpracticeinnovationsandsolutionsarebeingdisseminated

242014Roadmaponthewater-energynexus

TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited

NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has

addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD

aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto

solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference

addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency

andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater

WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014

onWaterandEnergylaunched

TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia

andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully

filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy

infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota

newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement

planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave

alloweddeliveryofanexponentiallysuccessfulservice

TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat

aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor

integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy

nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess

ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy

systems

The2014Roadmap

bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS

TheWatershyEnergyNexus(ThirstyEnergy)

bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining

EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia

bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo

ChapelHillUSA

bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay

bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement

ldquoToolsForActionrdquo

bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy

FoodNexusrdquo

bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014

bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater

bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium

bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo

10

11

3W

ater

and

Ene

rgy

Scen

ario

san

dC

halle

nges 3WaterandEnergyScenariosand

Challenges

31WaterandEnergytodayandprojections

Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact

basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy

demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective

scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup

prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives

andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater

andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto

endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy

responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa

sustainablewaterandenergyfuture

ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment

ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational

organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible

representationofourcommonfuture

Water and energy access today

WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable

provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources

interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor

thetransitiontowardshigherlevelsofeconomicandsocialprogress

Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand

communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial

andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments

ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities

foreducationandemploymentresultinginoverallnationaleconomicdevelopment

Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence

ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso

criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels

Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof

bothandtherebyconservingenergy

Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable

developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea

numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater

sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe

alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread

povertyreduction

TheMilleniumDevelopmentGoalsOutstandingSuccesshellip

bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking

watersources

bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990

to89percentin2010

bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin

2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved

watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing

SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml

hellipandneworremainingchallenges

bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater

bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica

bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld

populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)

bull28billionliveinareasofhighwaterstress(WWAP2012)

Futurescenarioswaterandenergydemands

UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits

currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill

stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe

combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater

demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)

Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby

2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85

increaseinthewaterconsumption(EA2012)

Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater

resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable

theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight

onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater

scarcity

Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands

Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight

alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity

degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis

littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion

of people living in water stressed areas is expected to increase from 25 to 23 (WRI)

Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters

(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained

demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are

forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25

respectively(2030WRG)

12

09

2T

heU

Na

ndt

heW

ater

Ene

rgy

Nex

usPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ontheavailableresourcesmodellingexperienceandinstitutionalandpoliticalrealitiesofacountry

Inordertoensureclientownernotshipandsuccessfulintegratedplanningthirstyenergyfocuseson

buildingthecapacityofrelevantstakeholdersandleveragingexistingeffortsandknowledgeThe

energyshywaterchallengeistoolargeforanyorganizationtotacklealone

23Whathavewelearnt

Thesearethemainresultsofthisprocesssofar

bullAnimprovedunderstandingofthedevelopmentscenariosandofthedrivingfactorsbehindwater

andenergydemand

bullImprovedknowledgeonbestpracticesexperienceknowshyhowandtoolsonthenexusandsharing

oftheseamongstakeholderswithcompetingpriorities

bullImprovedunderstandingonhowthesechallengesareinterlinkedtoeachotherandabetter

recognitionofthetradeshyoffsandopportunitiesforwinshywincoursesofaction

bullAbetterknowledgeoftheexistingopportunitiesandthemultiplegainsthatcanresultfrom

reversingunsustainabletrends

bullImproveddialogueonpolicytosupportconsensusbuildingamongthewiderangeofstakeholders

involvedinimprovingpolicycoherenceacrosssectors

bullBestpracticeinnovationsandsolutionsarebeingdisseminated

242014Roadmaponthewater-energynexus

TheWorldWaterDay(WWD)heldinTokyoJapanon20shy21March2014coordinatedbytheUnited

NationsUniversityandtheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)has

addressedthenexusofwaterandenergyinthecontextofsustainabledevelopmentTheWWD

aimedtoraiseawarenessacrossabroadrangeofbusinessdomainsandgovernmentsectorsto

solvewaterandenergychallengesinacohesivewayInpreparationtheZaragozaConference

addressedthechallengesrelationshipsandjointsolutionsthatarisefromensuringaccessefficiency

andsustainabilityintheprovisionofwaterandenergy OntheoccasionoftheWWDtheUNshyWater

WaterforLifeBestPracticesAwardwaspresentedandtheWorldWaterDevelopmentReport2014

onWaterandEnergylaunched

TheInternationalWaterManagementInstitute(IWMI)shyTataWaterPolicyProgramme(ITP)inIndia

andtheNEWaterprogrammersquoinSingaporehavebeenthe2014AwardwinnersITPsuccessfully

filledthegapbetweenresearchandpolicyactiontoimprovegroundwateruseinIndiathroughenergy

infrastructureandpolicyimprovements NEWaterwideuseswaterreclamationwhilethisisnota

newconceptwhatissignificantisthesuccessfulwideshyscaleimplementationandpublicengagement

planofNEWateralongwithitsparticipatorypracticesandpubliceducationprogrammeswhichhave

alloweddeliveryofanexponentiallysuccessfulservice

TheWorldWaterDevelopmentReport(WWDR)providesanswerstokeyquestionssuchaswhat

aretheimplicationsofthewatershyenergynexusforSDGsHowcanwemakebetterpoliciesfor

integratedmanagementandgovernanceHowcanwemakeabusinesscaseforwatershyenergy

nexusHowdowecreateenablingenvironmentsndashpublicprivatepricingimprovingjointaccess

ndashurbanvsruralFinallyhowdoweguaranteethelongshytermsustainabilityofwaterandenergy

systems

The2014Roadmap

bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS

TheWatershyEnergyNexus(ThirstyEnergy)

bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining

EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia

bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo

ChapelHillUSA

bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay

bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement

ldquoToolsForActionrdquo

bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy

FoodNexusrdquo

bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014

bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater

bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium

bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo

10

11

3W

ater

and

Ene

rgy

Scen

ario

san

dC

halle

nges 3WaterandEnergyScenariosand

Challenges

31WaterandEnergytodayandprojections

Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact

basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy

demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective

scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup

prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives

andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater

andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto

endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy

responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa

sustainablewaterandenergyfuture

ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment

ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational

organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible

representationofourcommonfuture

Water and energy access today

WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable

provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources

interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor

thetransitiontowardshigherlevelsofeconomicandsocialprogress

Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand

communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial

andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments

ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities

foreducationandemploymentresultinginoverallnationaleconomicdevelopment

Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence

ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso

criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels

Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof

bothandtherebyconservingenergy

Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable

developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea

numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater

sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe

alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread

povertyreduction

TheMilleniumDevelopmentGoalsOutstandingSuccesshellip

bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking

watersources

bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990

to89percentin2010

bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin

2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved

watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing

SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml

hellipandneworremainingchallenges

bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater

bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica

bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld

populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)

bull28billionliveinareasofhighwaterstress(WWAP2012)

Futurescenarioswaterandenergydemands

UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits

currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill

stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe

combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater

demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)

Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby

2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85

increaseinthewaterconsumption(EA2012)

Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater

resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable

theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight

onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater

scarcity

Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands

Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight

alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity

degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis

littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion

of people living in water stressed areas is expected to increase from 25 to 23 (WRI)

Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters

(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained

demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are

forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25

respectively(2030WRG)

12

The2014Roadmap

bull20-22 January AbuDhabiWorldFutureEnergySummitJointClosingSessionwithIWS

TheWatershyEnergyNexus(ThirstyEnergy)

bull06-08 February NewDelhiIndia14thDelhiSustainableDevelopmentSummitldquoAttaining

EnergyWaterandFoodSecurityforAllrdquoNewDelhiIndia

bull03-07 March ChapellHillUSAldquoNexus2014WaterFoodClimateandEnergyConferencerdquo

ChapelHillUSA

bull20-21 March TokyoandKumamotoCityJapan WorldWaterDay

bull07-09 May QueacutebecCityCanadaInternationalForumonIntegratedWaterManagement

ldquoToolsForActionrdquo

bull19-20 May BonnGermanyInternationalConferenceldquoSustainabilityintheWatershyEnergyshy

FoodNexusrdquo

bull21-23 May MexicoNexusConferenceIWAWaterEnergyandClimateConference2014

bull31 August-5 September StockholmSwedenWorldWaterWeekEnergyandWater

bull29-31 October LyonFranceWaterandEnergyInteractionsInternationalSymposium

bull1-13 November BeijingChina InternationalConferenceldquoSolutionsForTheNexusrdquo

10

11

3W

ater

and

Ene

rgy

Scen

ario

san

dC

halle

nges 3WaterandEnergyScenariosand

Challenges

31WaterandEnergytodayandprojections

Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact

basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy

demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective

scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup

prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives

andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater

andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto

endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy

responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa

sustainablewaterandenergyfuture

ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment

ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational

organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible

representationofourcommonfuture

Water and energy access today

WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable

provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources

interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor

thetransitiontowardshigherlevelsofeconomicandsocialprogress

Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand

communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial

andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments

ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities

foreducationandemploymentresultinginoverallnationaleconomicdevelopment

Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence

ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso

criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels

Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof

bothandtherebyconservingenergy

Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable

developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea

numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater

sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe

alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread

povertyreduction

TheMilleniumDevelopmentGoalsOutstandingSuccesshellip

bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking

watersources

bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990

to89percentin2010

bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin

2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved

watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing

SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml

hellipandneworremainingchallenges

bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater

bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica

bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld

populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)

bull28billionliveinareasofhighwaterstress(WWAP2012)

Futurescenarioswaterandenergydemands

UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits

currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill

stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe

combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater

demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)

Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby

2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85

increaseinthewaterconsumption(EA2012)

Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater

resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable

theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight

onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater

scarcity

Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands

Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight

alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity

degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis

littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion

of people living in water stressed areas is expected to increase from 25 to 23 (WRI)

Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters

(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained

demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are

forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25

respectively(2030WRG)

12

11

3W

ater

and

Ene

rgy

Scen

ario

san

dC

halle

nges 3WaterandEnergyScenariosand

Challenges

31WaterandEnergytodayandprojections

Meetingthechallengeofbuildingasustainablewaterandenergyfuturerequiresbuildingafact

basedscenarioabletounderstandthelikelyevolutionofthemaindriversbehindwaterandenergy

demandsaswellasthecapacitytocoverthesedemandswiththeresourcesavailableProspective

scenariosareessentialtoolstounderstandpresentandfuturechallengestheyhelpsettingup

prioritiesforpublicpolicyandalsoprovidethebasicinformationtosetshortandlongtermobjectives

andassessingtherelativesuccessorfailureoftheinitiativesundertakentocopewiththemWater

andenergyscenariosarecrucialtoconstructacommonvisionoftheproblemsaheadsoasto

endowpublicandprivatestakeholderswiththeforesightrequiredtocomeupwithambitiouspolicy

responsesthatarerequiredtoincreasetheaccessenhancetheefficiencyandconvergetoa

sustainablewaterandenergyfuture

ThischapterreviewstheextensiveworkcarriedoutinrecentyearsbytheWorldWaterAssessment

ProgrammetheWorldBanktheOECDtheInternationalEnergyAgencyandtheinternational

organizationsthatbaseduponwhatweactuallyknowhavetakenpartinofferingthebestpossible

representationofourcommonfuture

Water and energy access today

WaterandenergyaretwointegralcomponentsofhumandevelopmentAsufficientandreliable

provisionofwaterandenergyforlifeandforalltheeconomicactivitiesonwhichbothresources

interveneisanessentialproductioninputandabasicenablingconditionto overcomepovertyfor

thetransitiontowardshigherlevelsofeconomicandsocialprogress

Thelackofavailabilityandaccesstobasicwaterandenergyservicesimpedesindividualsand

communitiesfromachievinggreaterlevelsofwellshybeingandbenefitingfromopportunitiesforsocial

andeconomicdevelopmentThisisparticularlytrueforthemostpoorandvulnerablesegments

ofthepopulationsuchaswomenandchildrenInvestinginwaterandenergyserviceswillleadto

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

increasedlevelsofhumanhealthreducedlevelsofpovertyandindigenceandincreasedopportunities

foreducationandemploymentresultinginoverallnationaleconomicdevelopment

Inmanypoorcountriesbiomassaccountsfor90ofhouseholdenergyconsumptionHence

ecosystemservicesnotonlysustainenergysupplyinlowshyincomecountriesbuttheyarealso

criticallyaffectedbythepredominantchoiceofenergycarrierandaggregateconsumptionlevels

Watersecurityandecosystemshaveareciprocalrelationshipnecessaryfortheenhancementof

bothandtherebyconservingenergy

Securingaccesstomodernenergyservicesrepresentsamajorchallengeinpursuingsustainable

developmentWaterandenergyhavecrucialimpactsonpovertyalleviationndashdirectlybecausea

numberoftheMillenniumDevelopmentGoalsdependonmajorimprovementsinaccesstowater

sanitationpowerandenergysourcesandindirectlyaslackofaccesstowaterandenergycanbe

alimitingconstrainttosustainableeconomicgrowthwhichistheultimatehopeforwidespread

povertyreduction

TheMilleniumDevelopmentGoalsOutstandingSuccesshellip

bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking

watersources

bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990

to89percentin2010

bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin

2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved

watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing

SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml

hellipandneworremainingchallenges

bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater

bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica

bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld

populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)

bull28billionliveinareasofhighwaterstress(WWAP2012)

Futurescenarioswaterandenergydemands

UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits

currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill

stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe

combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater

demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)

Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby

2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85

increaseinthewaterconsumption(EA2012)

Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater

resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable

theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight

onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater

scarcity

Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands

Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight

alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity

degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis

littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion

of people living in water stressed areas is expected to increase from 25 to 23 (WRI)

Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters

(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained

demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are

forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25

respectively(2030WRG)

12

TheMilleniumDevelopmentGoalsOutstandingSuccesshellip

bullBetween1990and2010morethantwobillionpeoplegainedaccesstoimproveddrinking

watersources

bullTheproportionofpeopleusinganimprovedwatersourcerosefrom76percentin1990

to89percentin2010

bullTheshareofurbanslumresidentsinthedevelopingworlddeclinedfrom39percentin

2000to33percentin2012Morethan200millionofthesepeoplegainedaccesstoimproved

watersourcesimprovedsanitationfacilitiesordurableorlesscrowdedhousing

SourceMDGandBeyondhttpwwwunorgmilleniumgoalsenvironshtml

hellipandneworremainingchallenges

bullIn2011768millionpeopleremainedwithoutaccesstoanimprovedsourceofdrinkingwater

bullOver40percentofallpeoplewithoutimproveddrinkingwaterliveinsubshySaharanAfrica

bull25billionpeoplehaveunreliableornoaccesstoelectricityandaround40oftheworld

populationstillreliesonwoodcoalcharcoaloranimalwastetocooktheirfood(EIA2012)

bull28billionliveinareasofhighwaterstress(WWAP2012)

Futurescenarioswaterandenergydemands

UndertheOECD(2012)baselinescenarioby2050theworldeconomywillgrowtofourtimesits

currentsizeThisisexpectedtoresultinalessthanproportionalincreaseinwaterdemandbutwill

stillrequire55morewaterHouseholdsrsquowaterdemandisexpectedtogrowby130duetothe

combinedeffectofhigherpopulationwithbetterlivingstandardsThehigherincreasesinwater

demandsareexpectedtocomefrommanufacturing(+400)andfromthermalpowerplants(+140)

Theseprojectionsareinlinewiththosedevelopedfortheenergydemandandconsumptionthatby

2035areexpectedtobe35higherthanin2010andwillresultinamorethanproportional85

increaseinthewaterconsumption(EA2012)

Competingandinterlinkedwaterandenergydemandswillputadditionalpressureonfinitewater

resourcesAsrenewablewaterresourcesarelimitedwithoutchangesintheresourcesavailable

theamountsofwaterandenergyrequiredortheefficiencywithwhichtheyareusedthismight

onlyresulteitherinhigherconflictsbetweenusersorinfurtherdegradationandincreasedwater

scarcity

Allocationfornaturalwaterflowsinriversandlakeswillalsobecompetingwiththesedemands

Theforecastedchangeswillleadtoincreasedcompetitionforalimitedsupplyofwaterusemight

alsoproceedbeyondcriticalsustainablethresholdsattheexpenseofincreasedwaterscarcity

degradedwatersourcesresourceexhaustionandimpoverishedwaterqualityCurrentlythereis

littlescopeforincreaseduseofirrigationwateruseinmostregionsandby2025theproportion

of people living in water stressed areas is expected to increase from 25 to 23 (WRI)

Withthetotalannualsustainablefreshwatersupplyremainingstaticat4200billioncubicmeters

(m3)theannualdeficitfor2030isforecastedtobe2765billionm3or40ofunconstrained

demandassumingthatpresenttrendscontinueIndiaandthePeoplersquosRepublicofChina(PRC)are

forecastedtohaveacombinedshortfallof1000billionm3reflectingshortfallsof50and25

respectively(2030WRG)

12

13

3W

ater

and

Ene

rgy

Scen

ario

san

dC

halle

nges

Developingcountriesfacebiggerchallenges

bullAfricarsquoselectricitygenerationwillbe7timesashighastodayby2050

bullAsiarsquosprimaryenergyproductionwillalmostdoubleandelectricitygenerationwillmore

thantripleby2050

bullInLatinAmericatheamountofelectricitygeneratedisexpectedtoincreasefivefoldinthe

next40yearsandtheamountofwaterneededwilltripleWEO(2010)

Regionaldifferencesareimportanttoputthewaterandenergynexusintoadevelopmentpolicy

perspectiveWhileaccesstowaterandenergyisamorepressingpriorityinthedevelopingworld

thedevelopedworldismorefocusedonwaterandenergysustainabilityButbothmustbeconcerned

withwaterandenergyefficiency

32WaterandEnergyNewandbiggerchallengesahead

Population growth economic development

FuturechallengesdependoncurrentresponsesIfwedonotactnowfuturechallengeswillbemore

complex

Socialandeconomictransformationsaffecttheeffortrequiredtomeetthedevelopmentgoalsin

manydifferentwaysPopulationtrendsmightputmorepressureonurbanareasandmightmake

ithardertoprovideaccesstowaterandsanitationinurbanareaswherethepopulationlivingin

slumsby2035isexpectedtogrowby40Thesignificantadvancesinruralelectrificationand

accesstowaterandsanitationcomewithanincreaseinthecostsofcoveringscatteredpopulations

inremoteareas

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

TheIncreasedFinancialBurdenofWaterandEnergyAccess

bullAccordingtotheInternationalEnergyAgency(IEA)anextra$49billionperyearwillneed

tobeinvestedtoachieveuniversalenergyaccessby2030

bullInvestmentforwaterinfrastructureisevenhigherithasbeenestimatedthat$103billion

peryearisrequiredtofinancewatersanitationandwastewatertreatmentby2015

httpwwwworldenergyoutlookorgpublicationsweoshy2013

WaterandenergyarealsolinkedbytheirjointimportanceforfoodsecurityOvercomingpoverty

inaworldwheremorethan568millionpeopleremainundernourished(23inAsia)mightrequire

increasingfoodproductioninasectorthatalreadyaccountsfor70ofwaterwithdrawalsThe

combinedeffectofgrowingpopulationswithchangesinlifestyleanddietwillresultinanestimated

increaseof130onthedemandofwaterforirrigation(OECD)

Reconcilingtheseincreaseswiththeresourcesavailablerepresentsanoutstandingchallengefor

differentreasonsHalfoftheworldrsquosfoodisgrownongroundwatermuchofwhichisunsustainable

Asmentionedabovetheuseofwaterforirrigationmustfaceincreasedcompetitionwithother

growingusessuchaselectricitygenerationhouseholdconsumptionandmanufacturingThe

demandsforbiofuelsfortransportmightalsoleadtoincreasedcompetitionwithfoodwithinthe

irrigationsector

Encompassingwaterandenergypolicywithhumandevelopmentrequirescopingwiththechallenges

ofsecuringenoughwaterforenergydevelopmentandenoughenergyforwaterdevelopmentand

thisinterlinkedproblemwillincreasewithpopulationeconomicgrowthandclimatechange

TheEconomicLossesfromscarceandunreliablewaterandenergysupplies

bullLackofsanitationaccesscancostcountriesupto6ofGDP

bullUnreliablewatersupplyandfarmshytoshymarketaccesscandeprivefarmersof23rdoftheir

potentialincome

bullEnergysecurityisthreatenedbywaterchallenges3ofKenyarsquosGDPfromlosthydro

productionover1998shy2000

bullLossesofbiodiversityandecosystemserviceswithincreasinglyvisibleeconomiccost(eg

Chinalosing5GDPtopollution)

SourceTheWorldBank

Amorewaterconstrainedworld

Inmanyareasoftheworldthedevelopmentofthemostcommonformsofenergy(electricityfrom

coalthermalandhydropower)islimitedbytheavailabilityofwaterThisisnowawellshyknownreality

inimportantwaterstressedregionsinbothpoorandtransitioneconomiesButthelackoffuture

resourcesdidnotpreventthebuildingupofelectricitygenerationfacilitiesthatcanonlycurrently

workbelowtheirdesignedcapacity

Watersecurityforenergysecurityindifferentregions

bullExpansionplansforcoalpowerplantsinChinamightnotbefeasibleduetowaterscarcity

issues40ofthecountryrsquosthermalcapacityislocatedinNorthernChinawhereasonly

20ofthecountryrenewablefreshwatersupplyis

bullMorethan50ofpowerplantsinIndiaandSoutheastAsiaareinareasthatwilllikelyface

watershortages

bullNearly93ofMiddleEastrsquosonshoreoilreservesareexposedtomediumtoextremelyhigh

waterrisk

bullEuropersquoscoalandnuclearpowergeneratingcapacitywilldecreaseby6to19between

2031shy2060duetoincreasedwatertemperatureorlackofcoolingwater

Sourcehttpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml

AmorewatershyconstrainedfuturewillimpactreliabilityandcostsintheenergysectorInfactwater

scarcityismostlytheunanticipatedconsequenceofmanyendeavoursinareassuchasagricultural

manufacturingelectricityorlanddevelopmentthatareappraisedandacceptedbyusingthesame

criticalassumptionthatthewateravailableinthefuturewillbasicallybethesameastoday

Examplesofthiswaterenergycoordinationfailurebothinthedevelopedandunderdevelopedworld

(seeboxbelow)servetomakevisiblethevalueofpreservingwatersecurityMakingwatersecurity

partofenergyplanningandprojectappraisalwillavoidthewaterblindenergystrategiespursued

inthepast

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nges Resilience to extreme events and climate change

Besidesscarcitydefinedbytheunbalancebetweenthewaterresourcesusedandavailableona

normalbasistheincreaseinwaterusereducestheresilienceofenergyinfrastructuresandthe

overalleconomytoextremeeventssuchasdroughtrisksThereductioninriverflowsandwater

tablesalsomeanstherearelessalternativesourcesthatcanplaytheroleofbufferstockstocover

temporaryshortagesofwaterleadingtohigherdamagesandforegonebenefitsoftheenergysector

andtheentireeconomy

TheserisksmaybeexacerbatedbyweatheruncertaintyandclimatechangeForinstancethe

dependenceofwaterandthermaltechnologiesaccompaniedbyanunreliablesupplyofwatermight

increasetheimpactofheatwavesoverenergysecurityHeatwavesreduceenergysupplyby

evaporatingmorewaterandreducingitscoolingpotentialbutatthesametimeincreaseselectricity

demandforairconditioning

Inthesamesenseprolongeddryseasonsanddroughtincreasethedemandofwaterforirrigation

andthusthedemandofenergyforpumpingtransportandapplyingthewatertocropsbutreduces

thesupplyofwaterforenergywithimportantconsequencesoverhydropowergenerationAllthese

problemsasillustratedintheboxbelowmighthaveimportanteffectsoverthemarketandthe

entireeconomy

TheEnergyIndustryalreadyfaceswaterrelatedrisks

bullTheEnergyIndustryalreadyfaceswaterrelatedrisks

bullIntheUSseveralpowerplantshavehadtoshutdownorreducepowergenerationdue

tolowwaterflowsorhighwatertemperatures

bullIn2003inFranceanextendedheatwaveforcedEdFtocurtailnuclearpoweroutput

equivalenttothelossof4shy5reactorscostinganestimatedeuro300milliontoimportelectricity

bullIn2012adelayedmonsooninIndiaraisedelectricitydemand(forpumpinggroundwater

forirrigation)andreducedhydrogenerationcontributingtoblackoutslastingtwodaysand

affectingover600millionpeople

bullThe2011droughtinChinalimitedhydrogenerationalongtheYangtzerivercontributing

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tohighercoaldemand(andprices)andforcingsomeprovincestoimplementstrictenergy

efficiencymeasuresandelectricityrationing

bullExposuretorecurringandprolongeddroughtsarethreateninghydropowercapacityin

manycountriessuchasSriLankaChinaandBrazil

SourceOECD(2012)

WaterandenergyarelinkedinmanywayswithclimatechangeChangesinthewatercycleare

oneofthemainwaysinwhichtheimpactsofclimatechangewillbefeltndashthisincludesincreasing

variabilityincreasingextremes(droughtsfloods)andhigherambienttemperatures(including

warmerwatertemperatures)Allthisasmentionedabovecanonlyincreasetheexposureofenergy

suppliestowaterrelatedrisks

OntheotherhandwaterandenergyarealsocriticalformeetingclimategoalsThisrequiresthe

designandeffectiveimplementationofpoliciestobuilduprobustwaterandenergysystemsable

toadapttouncertaintemperaturesandberesilienttoweatherextremesDifferentstrategiescan

bedesignedtocontributetoclimatechangeadaptation

Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals

treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry

(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce

themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower

theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe

degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance

adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample

makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby

improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy

alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand

energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings

andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor

limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional

waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand

havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater

desalinationofseaorbrackishsources)

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4TheWaterandEnergyNexusOpportunitiesampChoices

TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows

thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability

ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners

involvedinfindinganintegratedresponsetowaterandenergychallenges

Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired

asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities

41FeasiblebutComplexChoices

Existing technology

AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand

energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange

oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe

requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities

doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater

todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives

ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent

productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout

additionalenvironmentaldamage

TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency

(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe

decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2

particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower

generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion

ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina

reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and

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ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)

Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora

sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily

meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions

inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof

theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy

mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease

inthewaterwithdrawnof20(OECDIEA2012)

No silver bullet nor one size fits all solutions

Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem

andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto

2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto

electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam

pressuresandtoattainhigherenergyconversionrates

increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater

andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater

usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy

firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin

waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies

withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis

explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional

electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals

fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)

Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions

Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector

manyothertradeshyoffsneedtobeconsidered

bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother

mightrequirebalancingtradeshyoffsbetweenthetworesources

bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply

additionalfinancialcosts

bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature

andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater

andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment

Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed

tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable

waterandenergyfuture

42TheWater-EnergyNexusOpportunities

Technology mix

Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily

ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect

functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources

andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe

finaluseoftheenergyproduced

Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere

crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement

ishigherTheseareasinclude

bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater

usedintheenergysectorisrequired

bull thewaterefficiencyoftheenergytransformationprocess

bull theenergyefficiencyoftheproductionofwaterservices

bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy

Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith

lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions

availableforasustainablewaterandenergyfuture

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The opportunities

1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems

TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch

andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan

bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand

relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas

theyaredepletedorbecomescarcerascomparedwithexistingdemands

Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon

theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome

hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland

conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)

2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses

forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical

optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse

littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated

solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind

powerusesanegligibleamountofwater

3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy

futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis

thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan

otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper

unitofenergythannaturalgasorcoalbasedsystems(IEA2012)

4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources

theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto

highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish

waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof

waterforcoolingpurposes

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ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste

watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils

orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith

awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks

canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto

retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment

Closer inspection of the Power transformation processes

Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis

feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive

alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell

asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector

Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe

energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95

oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity

producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain

intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater

usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles

ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies

Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother

importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling

Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto

itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing

coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove

mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic

metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem

Managing the transition

Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower

generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared

tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop

freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition

towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy

demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand

energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries

where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto

makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies

orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe

mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy

sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand

Africaarestilluntappedinthetransition

Untapped potential

Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies

Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill

savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand

energysavedalongtheentireproductioncycle

Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries

Hydropower Underdeveloped Potential

Africa 92

Asia 80

AustraliaOceania 80

LatinAmerica 74

SourceOECD

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In summary

Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture

energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis

importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater

andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices

Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented

opportunities

bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall

localscalesparticularlytothepoorestsegmentsofthesociety

bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance

generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand

inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof

thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto

replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry

bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower

plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat

thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction

reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts

bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy

productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants

inwaterstressedareas

bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy

productionhasseveralbenefits

bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding

coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)

andheat(byenergyintensiveheatingsystems)

bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality

ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide

useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith

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otherusesthatdependonfreshwatersupply

43Trade-offsandcomplexsolutions

Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy

nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs

thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe

avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial

attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter

Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing

thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies

andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe

pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother

More complex solutions

SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy

andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis

theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale

ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel

wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe

existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting

waterandenergyresources

Not easily adaptableflexible

ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand

waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily

adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable

andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant

flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources

ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan

importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation

oftheadaptationtotheuncertainsupplyofnonshyrenewablesources

Additional financial costs

Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction

levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey

donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective

Requirements for additional infrastructure

Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers

andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater

efficient irrigation systems require additional energy operation and maintenance costs

Reduced efficiency

TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient

coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe

useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces

yieldsperdrop

WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction

isnottheequivalentoflesswaterdepletion

SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)

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Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

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bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

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Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

Mak

ing

the

Cas

efo

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rshi

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5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

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52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

Enhancingtheenergyefficiencyofallthewaterrelatedactivities(includingwaterwithdrawals

treatmenttransportdistributionuseanddisposal)andthewaterefficiencyoftheenergyindustry

(fromfuelproductiontoelectricitygenerationandheatdissipation)areobviousmeanstoreduce

themutualexposureofthetwosectorsThehighertheefficiencyoftheenergyconversionthelower

theresidualheatandthenthedemandforwaterforcoolingRestoringriversandreversingthe

degradationtrendsofaquifersandotherwaterrelatedecosystemsisalsoameanstoenhance

adaptabilitytoclimatechangebyimprovingtheabilitytocopewithwaterextremesbyforexample

makingbufferstockstosmoothwatersuppliesindryperiodsorbycontainingfloodpeaksby

improvednaturalwaterretentioncapacitiesinrestoredfloodplainsandsoilsWaterandenergy

alsoplayanimportantroleinclimatemitigationCarboncaptureandstoragerequireswaterand

energyRenewablewatersourcesmighthaveabiggerpotentialtocontributetobothwatersavings

andclimatechangemitigation(suchaswindsolarandgeothermalenergy)ormightcompetefor

limitedwaterresources(suchasirrigatedcropsfortheproductionofbiofuels)Nonshyconventional

waterresourceswiththepotentialtosubstitutefreshwatermightaddtothedemandforwaterand

havenegativeconsequencesoverclimatechangemitigation(suchasenergyintensivewater

desalinationofseaorbrackishsources)

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4TheWaterandEnergyNexusOpportunitiesampChoices

TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows

thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability

ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners

involvedinfindinganintegratedresponsetowaterandenergychallenges

Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired

asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities

41FeasiblebutComplexChoices

Existing technology

AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand

energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange

oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe

requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities

doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater

todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives

ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent

productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout

additionalenvironmentaldamage

TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency

(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe

decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2

particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower

generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion

ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina

reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and

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ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)

Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora

sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily

meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions

inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof

theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy

mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease

inthewaterwithdrawnof20(OECDIEA2012)

No silver bullet nor one size fits all solutions

Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem

andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto

2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto

electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam

pressuresandtoattainhigherenergyconversionrates

increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater

andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater

usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy

firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin

waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies

withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis

explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional

electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals

fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)

Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions

Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector

manyothertradeshyoffsneedtobeconsidered

bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother

mightrequirebalancingtradeshyoffsbetweenthetworesources

bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply

additionalfinancialcosts

bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature

andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater

andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment

Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed

tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable

waterandenergyfuture

42TheWater-EnergyNexusOpportunities

Technology mix

Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily

ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect

functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources

andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe

finaluseoftheenergyproduced

Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere

crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement

ishigherTheseareasinclude

bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater

usedintheenergysectorisrequired

bull thewaterefficiencyoftheenergytransformationprocess

bull theenergyefficiencyoftheproductionofwaterservices

bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy

Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith

lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions

availableforasustainablewaterandenergyfuture

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The opportunities

1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems

TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch

andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan

bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand

relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas

theyaredepletedorbecomescarcerascomparedwithexistingdemands

Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon

theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome

hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland

conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)

2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses

forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical

optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse

littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated

solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind

powerusesanegligibleamountofwater

3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy

futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis

thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan

otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper

unitofenergythannaturalgasorcoalbasedsystems(IEA2012)

4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources

theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto

highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish

waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof

waterforcoolingpurposes

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ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste

watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils

orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith

awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks

canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto

retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment

Closer inspection of the Power transformation processes

Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis

feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive

alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell

asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector

Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe

energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95

oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity

producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain

intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater

usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles

ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies

Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother

importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling

Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto

itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing

coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove

mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic

metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem

Managing the transition

Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower

generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared

tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop

freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition

towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy

demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand

energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries

where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto

makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies

orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe

mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy

sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand

Africaarestilluntappedinthetransition

Untapped potential

Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies

Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill

savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand

energysavedalongtheentireproductioncycle

Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries

Hydropower Underdeveloped Potential

Africa 92

Asia 80

AustraliaOceania 80

LatinAmerica 74

SourceOECD

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In summary

Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture

energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis

importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater

andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices

Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented

opportunities

bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall

localscalesparticularlytothepoorestsegmentsofthesociety

bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance

generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand

inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof

thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto

replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry

bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower

plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat

thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction

reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts

bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy

productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants

inwaterstressedareas

bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy

productionhasseveralbenefits

bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding

coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)

andheat(byenergyintensiveheatingsystems)

bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality

ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide

useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith

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otherusesthatdependonfreshwatersupply

43Trade-offsandcomplexsolutions

Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy

nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs

thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe

avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial

attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter

Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing

thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies

andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe

pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother

More complex solutions

SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy

andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis

theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale

ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel

wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe

existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting

waterandenergyresources

Not easily adaptableflexible

ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand

waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily

adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable

andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant

flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources

ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan

importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation

oftheadaptationtotheuncertainsupplyofnonshyrenewablesources

Additional financial costs

Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction

levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey

donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective

Requirements for additional infrastructure

Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers

andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater

efficient irrigation systems require additional energy operation and maintenance costs

Reduced efficiency

TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient

coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe

useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces

yieldsperdrop

WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction

isnottheequivalentoflesswaterdepletion

SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)

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Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

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ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)

bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

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Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

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5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

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52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

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4TheWaterandEnergyNexusOpportunitiesampChoices

TheanalysisofexperiencesbyUNIDOUNEPAquafedICLEIUNUtheWWAPandWBaheadshows

thattherearedifferentopportunitiesandchoicestoimproveaccessefficiencyandsustainability

ofwaterandenergyWeneedtounderstandthetradeshyoffsandsynergiesfordifferentpartners

involvedinfindinganintegratedresponsetowaterandenergychallenges

Althoughcomplexchoicesareinvolvedandaclosercoordinationoftargetsandpoliciesisrequired

asustainablewaterandenergyfutureisfeasiblewithinthecurrenttechnologicalpossibilities

41FeasiblebutComplexChoices

Existing technology

AsustainablefutureispossibleManydifferentopportunitiesdoexistincopingwithwaterand

energychallengesAsafirstapproximationtheseopportunitiescanbefoundwithinthewiderange

oftechnologiesavailableinthewaterandenergyindustrythathavethepotentialtoreducethe

requirementofbothresourcesandopentheoptiontoenhancehumanwelfareSuchopportunities

doexistwhenitisfeasibletouselessenergytoproducethesamewaterservicesandorlesswater

todeliverthesameenergyWhenthishappensthereistheoptiontoreconcilethedifferentobjectives

ofsustainabledevelopmentopeningawindowofopportunitytoreducetheimpactofcurrent

productionovertheenvironmentortomakepossiblefurtheradvancesintheeconomywithout

additionalenvironmentaldamage

TheprospectiveanalysisastheldquoNewPoliciesrdquoscenariodevelopedbytheInternationalEnergyAgency

(OECDIEA2012)fortheperiod2010shy2035makesevidentthatadvancesinenergysupplycanbe

decoupledfromwateruseSomeexamplesincludethesubstitutionofsubcriticalpowerplants2

particularlythecoalfiredonesinthedevelopedworldtheprogressiveuseofmoreefficientpower

generationplants2theonshygoingshifttowardsmorewaterefficientcoolingsystemsandtheexpansion

ofrenewablesourcesThecombinedeffectofthesetrendsinthebaselinescenariomightresultina

reductionof23inthewaterwithdrawnbyunitofelectricityproducedbetween2010and2035and

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ty aldquoNewPoliciesrdquoscenariocouldbedevelopedtoextendthisreductionto33(OECDIEA2012)

Positivechangesintheenergyindustryarealreadyontrackbutstillnotinthescalerequiredfora

sustainablewaterandenergyfutureAmorewaterefficientenergyindustrydoesnotnecessarily

meanamoresustainableeconomyAstheldquoNewPoliciesrdquoscenariodemonstratesthereductions

inwaterrequirementsperunitofenergywillbecompensatedbytherapidincreaseinthescaleof

theenergysectorWhenthetwoeffectsaretakenintoaccountthemoreefficientbutbiggereconomy

mightincreasetheenergyproducedby80withalessthanproportionalbutstilladequateincrease

inthewaterwithdrawnof20(OECDIEA2012)

No silver bullet nor one size fits all solutions

Althoughtechnologicalopportunitiesareavailableworldwidetheabilitytotakeadvantageofthem

andtheirpurposemightdiffersubstantiallyamongregionsandcountriesWithlowerpressureto

2 Subcriticalpowerplantsworkwithrelativelylowsteampressuresandattainenergyefficiencies(ratesoftransformationofheatinto

electricity)between33and37Moremodernsupercriticalandultrashysupercriticalpowerplantsareabletooperateathighersteam

pressuresandtoattainhigherenergyconversionrates

increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater

andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater

usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy

firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin

waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies

withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis

explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional

electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals

fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)

Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions

Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector

manyothertradeshyoffsneedtobeconsidered

bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother

mightrequirebalancingtradeshyoffsbetweenthetworesources

bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply

additionalfinancialcosts

bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature

andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater

andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment

Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed

tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable

waterandenergyfuture

42TheWater-EnergyNexusOpportunities

Technology mix

Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily

ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect

functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources

andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe

finaluseoftheenergyproduced

Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere

crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement

ishigherTheseareasinclude

bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater

usedintheenergysectorisrequired

bull thewaterefficiencyoftheenergytransformationprocess

bull theenergyefficiencyoftheproductionofwaterservices

bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy

Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith

lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions

availableforasustainablewaterandenergyfuture

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The opportunities

1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems

TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch

andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan

bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand

relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas

theyaredepletedorbecomescarcerascomparedwithexistingdemands

Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon

theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome

hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland

conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)

2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses

forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical

optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse

littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated

solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind

powerusesanegligibleamountofwater

3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy

futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis

thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan

otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper

unitofenergythannaturalgasorcoalbasedsystems(IEA2012)

4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources

theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto

highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish

waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof

waterforcoolingpurposes

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ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste

watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils

orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith

awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks

canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto

retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment

Closer inspection of the Power transformation processes

Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis

feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive

alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell

asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector

Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe

energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95

oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity

producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain

intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater

usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles

ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies

Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother

importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling

Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto

itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing

coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove

mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic

metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem

Managing the transition

Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower

generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared

tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop

freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition

towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy

demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand

energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries

where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto

makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies

orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe

mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy

sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand

Africaarestilluntappedinthetransition

Untapped potential

Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies

Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill

savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand

energysavedalongtheentireproductioncycle

Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries

Hydropower Underdeveloped Potential

Africa 92

Asia 80

AustraliaOceania 80

LatinAmerica 74

SourceOECD

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In summary

Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture

energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis

importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater

andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices

Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented

opportunities

bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall

localscalesparticularlytothepoorestsegmentsofthesociety

bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance

generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand

inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof

thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto

replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry

bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower

plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat

thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction

reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts

bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy

productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants

inwaterstressedareas

bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy

productionhasseveralbenefits

bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding

coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)

andheat(byenergyintensiveheatingsystems)

bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality

ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide

useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith

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otherusesthatdependonfreshwatersupply

43Trade-offsandcomplexsolutions

Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy

nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs

thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe

avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial

attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter

Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing

thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies

andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe

pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother

More complex solutions

SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy

andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis

theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale

ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel

wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe

existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting

waterandenergyresources

Not easily adaptableflexible

ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand

waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily

adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable

andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant

flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources

ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan

importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation

oftheadaptationtotheuncertainsupplyofnonshyrenewablesources

Additional financial costs

Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction

levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey

donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective

Requirements for additional infrastructure

Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers

andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater

efficient irrigation systems require additional energy operation and maintenance costs

Reduced efficiency

TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient

coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe

useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces

yieldsperdrop

WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction

isnottheequivalentoflesswaterdepletion

SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)

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Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

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bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

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Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

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27

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5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

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52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

increaseenergysuppliesfordomesticuseadvancingeconomieshavetheoptiontodecouplewater

andenergyusefromeconomicgrowthandcontinueonshygoingactionstoreducetheamountofwater

usedintheenergysector(whichcanbefeasiblyattainedonlywiththesubstitutionofobsoletecoalshy

firedplantsandmoreefficientcoolingsystems)Ontheotherhandinspiteoffurtheradvancesin

waterefficiencytransitioneconomieswillstillexpandtheuseofnuclearandfossilfueltechnologies

withonceshythroughcoolingsystemsinordertocopewithrapidlyincreasingenergydemandsThis

explainswhybesidesfurtheradvancesinrenewableenergyasmuchas70oftheadditional

electricitydemandwillbecoveredwithtraditionalenergysources(forinstancethewaterwithdrawals

fornucleargenerationisexpectedtogrowbyathirdintheperiod2010shy2035)

Asustainablefutureisthenpossiblebuttherearenotsilverbulletsoronesizefitsallsolutions

Besidesthetechnicalopportunitytoproducemorewithlessbothinthewaterandenergysector

manyothertradeshyoffsneedtobeconsidered

bullAlthoughsomealternativesallowforsimultaneoussavingsinwaterandenergymanyother

mightrequirebalancingtradeshyoffsbetweenthetworesources

bullMoreefficientwaterandenergysystemsareingeneralmorecomplextooperateandimply

additionalfinancialcosts

bullSavingsintheproductionstagearenotnecessarilytheequivalenttolowerpressuresovernature

andsometechnicalalternativesmightimplypositiveandnegativechangesintheuseofwater

andenergyalongthewholeproductcyclewithambiguouseffectsovertheenvironment

Thefollowingsectionsexploreboththeopportunitiesavailableandtheabovetradeshyoffsthatneed

tobeconsideredtomakethemworkinthedecisionmakingprocessforthebenefitofasustainable

waterandenergyfuture

42TheWater-EnergyNexusOpportunities

Technology mix

Successinmanagingthewaterandenergynexusforthepurposeofsustainabilitydependsheavily

ontechnologychoicesTheoveralleffectoftheenergyindustryoverfreshwaterresourcesisadirect

functionofthemixoffuelsusedthebalancebetweenrenewableandnonshyrenewableenergysources

andthewaterefficiencyofthewholeenergycyclefromtheproductionoftherawmaterialstothe

finaluseoftheenergyproduced

Discussionsaroundthetechnicalopportunitiesavailabletendtofocusonthosecriticalareaswhere

crossedimpactsbetweenwaterandenergyaremoreimportantandwhereroomforimprovement

ishigherTheseareasinclude

bullthemixofwaterandenergysourcestheelectricitygenerationprocesswheremostofthewater

usedintheenergysectorisrequired

bull thewaterefficiencyoftheenergytransformationprocess

bull theenergyefficiencyoftheproductionofwaterservices

bull andtheefficiencywithwhichwaterandenergyareusedinthedifferentsectorsoftheeconomy

Inalltheseareasthereareimportantopportunitiesavailabletoproducemoreandbetterqualitywith

lessBesidescurrentalternativesresearchandinnovationisakeyelementtowidentheoptions

availableforasustainablewaterandenergyfuture

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The opportunities

1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems

TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch

andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan

bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand

relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas

theyaredepletedorbecomescarcerascomparedwithexistingdemands

Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon

theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome

hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland

conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)

2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses

forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical

optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse

littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated

solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind

powerusesanegligibleamountofwater

3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy

futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis

thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan

otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper

unitofenergythannaturalgasorcoalbasedsystems(IEA2012)

4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources

theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto

highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish

waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof

waterforcoolingpurposes

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ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste

watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils

orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith

awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks

canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto

retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment

Closer inspection of the Power transformation processes

Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis

feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive

alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell

asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector

Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe

energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95

oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity

producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain

intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater

usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles

ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies

Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother

importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling

Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto

itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing

coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove

mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic

metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem

Managing the transition

Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower

generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared

tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop

freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition

towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy

demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand

energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries

where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto

makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies

orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe

mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy

sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand

Africaarestilluntappedinthetransition

Untapped potential

Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies

Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill

savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand

energysavedalongtheentireproductioncycle

Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries

Hydropower Underdeveloped Potential

Africa 92

Asia 80

AustraliaOceania 80

LatinAmerica 74

SourceOECD

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In summary

Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture

energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis

importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater

andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices

Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented

opportunities

bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall

localscalesparticularlytothepoorestsegmentsofthesociety

bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance

generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand

inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof

thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto

replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry

bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower

plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat

thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction

reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts

bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy

productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants

inwaterstressedareas

bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy

productionhasseveralbenefits

bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding

coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)

andheat(byenergyintensiveheatingsystems)

bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality

ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide

useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith

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otherusesthatdependonfreshwatersupply

43Trade-offsandcomplexsolutions

Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy

nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs

thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe

avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial

attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter

Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing

thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies

andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe

pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother

More complex solutions

SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy

andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis

theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale

ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel

wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe

existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting

waterandenergyresources

Not easily adaptableflexible

ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand

waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily

adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable

andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant

flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources

ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan

importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation

oftheadaptationtotheuncertainsupplyofnonshyrenewablesources

Additional financial costs

Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction

levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey

donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective

Requirements for additional infrastructure

Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers

andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater

efficient irrigation systems require additional energy operation and maintenance costs

Reduced efficiency

TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient

coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe

useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces

yieldsperdrop

WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction

isnottheequivalentoflesswaterdepletion

SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)

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Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

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bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

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Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

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5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

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52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

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The opportunities

1 Thefirstsetofopportunitiesconsistsinshiftingtowardslesswaterintensiveenergysystems

TheenergyindustryhasawidearrayoftechnologicaloptionsavailableAsscarcityincreasedresearch

andinnovationaswellasexistingincentiveshaveservedtoexpandthenumberofsourcesthatcan

bemobilizedfortheproductionofenergyservicesExistingincentiveshaveservedtoaddnewand

relativelymoreabundantenergysourcesthatmightreplacethetraditionalandexhaustibleonesas

theyaredepletedorbecomescarcerascomparedwithexistingdemands

Thereareimportantdifferencesinthewaterrequiredforprimaryenergyproductiondependingon

theresourceusedThewaterwithdrawnandconsumedmayvaryintermsofmagnitudefromsome

hundredsofcubicmeterspertonofequivalentoil(forconventionalgas)tothousands(forcoaland

conventionalrefinedoil)andeventomillions(forsoyacornandsugarcanebasedbiofuels)

2 Anotherimportantwindowofopportunityconsistsinchoosingfromdifferentproductionprocesses

forenergywithinagivenresourcebaseEvenwithrenewablesourcesthereisawidesetoftechnical

optionsavailabletoconvertitintoenergyForinstancesolarpowerdependingonitstypecanuse

littlewater(solarphotovoltaic)ormorethanfivetimesmorewaterperunitenergy(concentrated

solarpower)thanagasshyfiredthermalpowerplantortwotimesmorethanacoalshyfiredplantWind

powerusesanegligibleamountofwater

3 Locationdecisionsmightalsoplayakeyroleinthebuildingupofawatersustainableenergy

futureForsometechnologieswaterrequirementscandependheavilyonlocalconditionsThisis

thecaseofgeothermalenergyalthoughhavingbeenreportedtouseandconsumelesswaterthan

otherelectricitygeneratingtechnologiesunderidealconditionsmayevenrequiremorewaterper

unitofenergythannaturalgasorcoalbasedsystems(IEA2012)

4 Inasimilarsensealthoughvariableinfunctionoflocalconditionsandthestateofwatersources

theenergyrequirementsofobtainingwaterfromdifferentsourcesmightdifferfromminimumto

highamountsofenergyfromsurfacewatertorecycledwastewaterordesalinatedseaandbrackish

waterThemoreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedof

waterforcoolingpurposes

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ty 5 TheproductionofwaterservicescanalsobemoreorlessenergyintensiveForexamplewaste

watertreatmentcanuselittleenergywhentheselfshydepurationcapacitiesofwellshypreservedsoils

orstreamsareusedorbeenergyintensivewhenadvancedmembranetechnologiesareusedwith

awiderangeofmoreconventionaltechnologiesinbetweenInthesamesensemanagingfloodrisks

canbedonebyusinggreeninfrastructuresorrestoringtheriverfloodplainsorbuildingdamsto

retainfloodpeakswithdifferentimpactsoverenergydemandandtheenvironment

Closer inspection of the Power transformation processes

Acloserinspectionofavailabletechnologiesmakesclearthatwatersustainableenergyfutureis

feasibleParticularattentionmustbegiventothepowertransformationprocessinthewaterintensive

alternativesthatplaytheleadingroleprovidingelectricity(asmuchas80ofcurrentsupply)aswell

asstillusingthebulkof15oftheworldwaterwithdrawnthatisusedbytheenergysector

Watersavingopportunitiesinthesethermalpowerplantsarecloselylinkedwiththeefficiencyofthe

energytransformationprocess Mostwaterwithdrawalsareusedforcooling(between85and95

oftheoverallwaterwithdrawn)thatistosaytheresidualheatgeneratedalongwiththeelectricity

producedEnhancingtheefficiencyoftheelectricitygenerationprocessmeansasimultaneousgain

intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater

usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles

ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies

Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother

importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling

Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto

itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing

coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove

mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic

metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem

Managing the transition

Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower

generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared

tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop

freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition

towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy

demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand

energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries

where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto

makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies

orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe

mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy

sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand

Africaarestilluntappedinthetransition

Untapped potential

Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies

Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill

savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand

energysavedalongtheentireproductioncycle

Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries

Hydropower Underdeveloped Potential

Africa 92

Asia 80

AustraliaOceania 80

LatinAmerica 74

SourceOECD

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In summary

Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture

energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis

importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater

andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices

Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented

opportunities

bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall

localscalesparticularlytothepoorestsegmentsofthesociety

bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance

generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand

inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof

thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto

replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry

bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower

plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat

thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction

reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts

bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy

productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants

inwaterstressedareas

bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy

productionhasseveralbenefits

bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding

coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)

andheat(byenergyintensiveheatingsystems)

bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality

ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide

useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith

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otherusesthatdependonfreshwatersupply

43Trade-offsandcomplexsolutions

Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy

nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs

thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe

avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial

attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter

Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing

thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies

andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe

pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother

More complex solutions

SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy

andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis

theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale

ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel

wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe

existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting

waterandenergyresources

Not easily adaptableflexible

ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand

waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily

adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable

andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant

flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources

ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan

importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation

oftheadaptationtotheuncertainsupplyofnonshyrenewablesources

Additional financial costs

Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction

levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey

donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective

Requirements for additional infrastructure

Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers

andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater

efficient irrigation systems require additional energy operation and maintenance costs

Reduced efficiency

TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient

coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe

useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces

yieldsperdrop

WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction

isnottheequivalentoflesswaterdepletion

SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)

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Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

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ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)

bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

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Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

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5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

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52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

intheenergyproducedandreductioninthewaterrequiredInfactthemainexplanationofthewater

usedistheheatrate(heatperunitofelectricity)andthisrateisingenerallowerforcombinedcycles

ofgasturbine(CCGT)thanforotherfossilfuelbasedtechnologies

Besidesreducingtheresidualheatandincreasingboththeenergyandthewateravailableanother

importantopportunityconsistsofchoosingtheappropriatetechnologytoreducethewaterforcooling

Significantsavingscanbeobtainedbyshiftingfromoncethroughcoolingthatreturnthewaterto

itssourcetocoolingpondsystemsthatreusethewaterandfurthergainscanbeobtainedwithusing

coolingtowerstooptimizethecoolingprocessForagivenpowertechnologyforinstancetheabove

mentionedCombinedCycleGasTurbineThewaterwithdrawncanbereducedfromahundredcubic

metersperMegawattwithtraditionaloncethroughcoolingtoonlytenlitreswithadrycoolingsystem

Managing the transition

Thedevelopmentofalternativeresourcesaswellastheimplementationofwaterefficientpower

generationtechnologiesisasuitableoptionfordevelopedcountriesthatarenotonlybetterprepared

tofosterarapiddiffusionofinnovationsbuthavemostlyexhaustedtheirpossibilitiestodevelop

freshwaterresourcestoincreasethesupplyofbothwaterandenergyOntheotherhandthetransition

towardsawaterandenergyefficientfuturewillcoincidewitharelativegrowthinwaterandenergy

demandsandwiththerealpossibilityofdecouplingeconomicgrowthfromincreasedwaterand

energydemandandsupplyThescaleofthechallengeislargerintransitiondevelopingcountries

where90oftheexpectedincreaseinenergydemandin2010shy2035isexpectedThoughcalledto

makeacontributionatleastinthetransitionalperiodtheextensiveuseofpioneeringtechnologies

orthedevelopmentofrenewableenergysourcesisnotexpectedtoplaythedeterminantroleinthe

mediumtermNeverthelessopportunitiesdoexistinaconsciousdevelopmentoftraditionalenergy

sourcesForinstancemorethan75ofthehydropoweropportunitiesinSouthAmericaAsiaand

Africaarestilluntappedinthetransition

Untapped potential

Furtheropportunitiesdoexisttocoshyproduceenergyandwaterservicesandtoexploitsynergies

Somealternativessuchaslowshyflowfixtureswaterandenergyefficientsolarwaterheatingwill

savewaterandenergyatitsfinalusesothatbenefitscanbeobtainedbyincludingallthewaterand

energysavedalongtheentireproductioncycle

Stillmanyupdatedopportunitiesinfastgrowingwaterandenergydemandcountries

Hydropower Underdeveloped Potential

Africa 92

Asia 80

AustraliaOceania 80

LatinAmerica 74

SourceOECD

20

21

4T

heW

ater

and

Ene

rgy

Nex

usO

ppor

tuni

tiesamp

Cho

ices

In summary

Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture

energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis

importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater

andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices

Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented

opportunities

bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall

localscalesparticularlytothepoorestsegmentsofthesociety

bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance

generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand

inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof

thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto

replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry

bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower

plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat

thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction

reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts

bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy

productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants

inwaterstressedareas

bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy

productionhasseveralbenefits

bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding

coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)

andheat(byenergyintensiveheatingsystems)

bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality

ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide

useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

otherusesthatdependonfreshwatersupply

43Trade-offsandcomplexsolutions

Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy

nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs

thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe

avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial

attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter

Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing

thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies

andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe

pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother

More complex solutions

SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy

andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis

theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale

ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel

wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe

existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting

waterandenergyresources

Not easily adaptableflexible

ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand

waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily

adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable

andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant

flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources

ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan

importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation

oftheadaptationtotheuncertainsupplyofnonshyrenewablesources

Additional financial costs

Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction

levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey

donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective

Requirements for additional infrastructure

Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers

andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater

efficient irrigation systems require additional energy operation and maintenance costs

Reduced efficiency

TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient

coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe

useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces

yieldsperdrop

WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction

isnottheequivalentoflesswaterdepletion

SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)

22

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Cho

ices

Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)

bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

24

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acce

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ffici

ency

and

sus

tain

abili

ty

Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

Part

ners

hips

fori

mpr

ovin

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and

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rgy

acce

sse

ffici

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and

sus

tain

abili

ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable

52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

21

4T

heW

ater

and

Ene

rgy

Nex

usO

ppor

tuni

tiesamp

Cho

ices

In summary

Policiesandintegratedplansthatencourageenergyandwaterconservationcanreducefuture

energyandwaterrequirementsBesideschangesinthemixofwaterandenergysourcesitis

importanttoconsidertheselectionofwaterandenergytechnologiestheoptimallocationofwater

andenergyinvestmentsandtheextendeduseofwaterandenergyefficientequipmentanddevices

Integratedapproachescantakeadvantageofthefollowingnonshycomprehensivelistofwelldocumented

opportunities

bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesoptimizedtooperateall

localscalesparticularlytothepoorestsegmentsofthesociety

bull PuttingeffluentsintovaluefortheenergysectorEnergyrecoveryfromwastewaterbyforinstance

generatingenergyfromsludgeproducedattheplantsavingcostsinelectricityproductionand

inwastewatertreatmentatthesametimewithimportantcoshybenefitssuchasthereductionof

thehealthrisksofuncontrolledwaterdisposalandtheoptiontoproduceorganicfertilizersto

replacetheuseofwaterandenergyintensiveonesproducedbytheagrochemicalindustry

bullConvertingresidualsfromtheenergyintoinputsforthewaterindustry Heatrecyclingfrompower

plantsbyforinstanceintegratingresidualheatasaninputinthewatertreatmentprocesssothat

thevolumeofwaterrequiredforcoolingisdecreasedavoidingcostsintheenergyproduction

reducingtheneedofwaterinfrastructuresandreducingwastewaterdisposalcosts

bullRecyclingwastewaterfromanearbywastewatertreatmentplantisameanstosavingenergy

productioncostsreducewaterdeliverycostsandenhancewatersecurityofthermalpowerplants

inwaterstressedareas

bullIntegratedenergyanddesalination(treatmentrecyclingetc)Integratedwaterandenergy

productionhasseveralbenefits

bullCogenerationthesimultaneousproductionofpowerandusefulheatasameanstoavoiding

coolingcostsaswellasthecostsimpliedintheseparateproductionofelectricity(bypowerplants)

andheat(byenergyintensiveheatingsystems)

bull ReplacementoffreshwaterbyalternativewatersourcesforthermalpowerproductionThequality

ofthewaterrequiredforcoolingnuclearandotherthermalpowergenerationplantsallowswide

useofalternativesourcessuchasseabrackishandwastewaterthatmightnotcompetewith

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

otherusesthatdependonfreshwatersupply

43Trade-offsandcomplexsolutions

Theinventoryofwellprovenopportunitiesandpotentialsynergiestomanagethewaterandenergy

nexusmustnothidethecomplexitiesofdecisionmakingandinparticulartheimportanttradeshyoffs

thatneedtobeconsideredaswellasthesocialchallengestoovercomeandtherisksthatmustbe

avoidedtopavethewaytowardsasustainablewaterandenergyfutureThissectionpaysspecial

attentiontothetradeshyoffswhilethechallengesandrisksaredevelopedinthefollowingchapter

Sofaralltheseopportunitieshaveonlybeenconsideredfortheirpotentialcontributiontoreducing

thepressureoverbothwaterandenergysourcesbytakingadvantageofthemultipleinterdependencies

andsynergiesbetweenbothresourcesTradeshyoffsappearwhendifferentobjectivesenterintothe

pictureandinparticularwhenadvancesinonetargetimplyaopportunitycosttotheother

More complex solutions

SometradeshyoffsmightappearasunavoidableForinstanceanintegratedsystemtoproduceenergy

andwaterismorecomplextomanageandoperateAswaterandenergybecomescarcerthereis

theneedtotakeintoaccountanincreasingnumberofinteractionsandthisistrueatthelocalscale

ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel

wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe

existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting

waterandenergyresources

Not easily adaptableflexible

ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand

waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily

adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable

andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant

flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources

ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan

importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation

oftheadaptationtotheuncertainsupplyofnonshyrenewablesources

Additional financial costs

Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction

levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey

donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective

Requirements for additional infrastructure

Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers

andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater

efficient irrigation systems require additional energy operation and maintenance costs

Reduced efficiency

TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient

coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe

useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces

yieldsperdrop

WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction

isnottheequivalentoflesswaterdepletion

SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)

22

23

4T

heW

ater

and

Ene

rgy

Nex

usO

ppor

tuni

tiesamp

Cho

ices

Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)

bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

24

25

5M

akin

gth

eC

ase

for

Part

ners

hips

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable

52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

ofaproductionplantwheredifferentprocesseswouldneedtobecoordinatedandatapolicylevel

wherewaterandenergyneedtobemanagedinacoordinatedwaysoastoaccommodateallthe

existingdemandsofbothresourcesinalltheareasoftheeconomywithinthecapacityofexisting

waterandenergyresources

Not easily adaptableflexible

ComplexenergymixesrepresentbothanopportunityandamanagementchallengeRenewableand

waterefficientenergysourcessuchaswindandpowerarealsointermittentandthennonshyeasily

adaptabletothesizeofvariablewaterdemandbutontheoppositeextremehighscalenonshyrenewable

andwaterintensivethermalpowersourcesarebetterandlesscostlytooperateproducingaconstant

flowofenergythatisntadaptabletochangesinwaterdemandthroughoutthedayFlexiblesources

ofenergysuchashydropowerandtoalesserextentsmallscalecombinedgasplantsplayan

importantroleastheyallowmatchingwatersupplyandconsumptionaswellasthesmoothoperation

oftheadaptationtotheuncertainsupplyofnonshyrenewablesources

Additional financial costs

Waterefficienttechnologiescomewithadditionalfinancialcostsandoftenwithreducedproduction

levelsThisisthemainreasonthatinspiteoftheiradvantagesintermsofresourceefficiencythey

donrsquotcomewiththeincentivesthatmightmakethemattractivefromapurebusinessperspective

Requirements for additional infrastructure

Thereuseofwaterforcoolingrequiresadditionalinfrastructuresuchaspondsandcoolingtowers

andadditionalcoststocontrolcorrosionandotherassociatedmanagementcomplexitiesWater

efficient irrigation systems require additional energy operation and maintenance costs

Reduced efficiency

TradeshyoffsbetweenresourceefficiencyandproductivityarealsotobeconsideredWaterefficient

coolingsystemsreducetheefficiencyoftheenergytransformationsysteminthesamewaythatthe

useofgravityinsteadofpumpingtoapplywatertocropsincreasesthewaterrequiredandreduces

yieldsperdrop

WateruseandwaterconsumptiondonrsquotgotogetherLowerwateruseinelectricityproduction

isnottheequivalentoflesswaterdepletion

SourceWateruseforelectricitygenerationbycoolingtechnology(IEA2012)

22

23

4T

heW

ater

and

Ene

rgy

Nex

usO

ppor

tuni

tiesamp

Cho

ices

Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)

bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

24

25

5M

akin

gth

eC

ase

for

Part

ners

hips

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable

52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

23

4T

heW

ater

and

Ene

rgy

Nex

usO

ppor

tuni

tiesamp

Cho

ices

Trade-offs along the product cycle

Manyalternativesimplycomplextradeshyoffsbetweentheuseofwaterandenergyatdifferentstages

alongtheproductcycleForinstancehydraulicfracturingisaneffectiveandcompetitivemeans

toincreasingtherelativeweightofthemorewaterefficientgascombinedcycletechnologyinthe

overallelectricityportfolioHoweverfrackingrequireslargeamountsofwaterandalsogenerates

wastewaterthatneedstobetreatedDependingonlocalconditionsthewatergainsthusobtained

inelectricitygenerationmightcomeattheexpenseofincreasedwateruseintheextractionoffuel

Onabroaderscaledecisionsmadeforenergyproductioncanhavesignificantmultifacetedand

broadshyreachingimpactsoneachotherwithamixofbothpositiveandnegativerepercussions

Trade-offs according to different objectives

Tradeshyoffsbetweencopingwithalternativesustainabilitychallengesmayalsoberelevantinmany

areasBioshyfuelsfortransportmightbeaneffectivemeanstosequesterGHGsbutirrigatedbiofuels

mayaddtowaterscarcityandwaterdemandconflictsbycompetingforwaterandlandwithfood

productionGeothermalenergyforinstanceproducesminimalornearshyzerogreenhousegas(GHG)

emissionsbutitsimpactoverwaterresourcescanbesignificantUnderitscurrentstageof

developmentitisnotyetacostshycompetitivetechnologythoughitsavailabilityisinfiniteinhuman

timescales

Assessingtradeoffsenvironmentalandsocialimpactsandexploringtheuseofmultipurposedams

isnecessaryforsustainabledevelopment

bullDrycoolingsystemsrequirenowaterfortheiroperationbutdecreaseefficiencyoftheplant

IncreasingcapitalandoperationalcostsincreasingGHGemissionsperkwh

bull Tradeshyoffsbetweenwaterwithdrawnandwateruseareparticularlyrelevantinthediscussions

aboutwaterandenergyefficiencyTraditionaloncethroughcoolingsystemsimplythediversion

ofimportantamountsofwaterwithdetrimentaleffectsoverwaterecosystemsbutmostofthe

waterwithdrawnreturnstothesystemandisavailableforadditionalusesdownstreamCooling

towersdonrsquotrequiretakingthesameamountfromwatersourcesdownstreambutconsume

morewaterandthenreducethewateravailabledownstreamTheshiftfromoncethroughto

coolingtowersinthenuclearandthefossilsteamtechnologiesmightbeaclassicalexample

ofawatersavingchangethatreduceswaterwithdrawalsperunitofenergyproducedbut

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty increasesthewaterconsumed(anddepleted)(SeeIEAOECD2012)

bullTradeshyoffsbetweenwaterwithdrawnandwaterdepletedexplainwhyinthebaselineandthe

ldquonewpoliciesrdquoscenariostheintensityofglobalwithdrawalsandconsumptionforenergyproduction

ndashthatiswaterwithdrawalsandconsumptionperunitofenergyproducedndashheadinopposite

directionsduringtheOutlookperiod(OECD)

bullSimilartradeshyoffsbetweenwaterdiversionsandwaterdepletionmightappearwhentheefficiency

ofwaterdistributionanapplicationsystemisenhancedforinstancewhenagriculturalsystems

shiftfromgravitytodripirrigationThismayleadtolowerreturnsduetohighevapotranspiration

ratesandmighthavenegativeeffectsonwateravailabilitydownstreamTherelevanceofthese

complextradeshyoffsbetweenwaterwithdrawnusedanddepleteddependsonmanydifferent

factorssuchaswaterabundanceandscarcityandlocation

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

24

25

5M

akin

gth

eC

ase

for

Part

ners

hips

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable

52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

5MakingtheCaseforPartnerships

ThepreviouschapterspresentedthediscussionsandresultsoftheConferenceregardingtwo

importantissuesthechallengesinvolvedinthewaterandenergynexus(Chapter3)andthe

opportunitiesavailabletomeetthesechallenges(Chapter4)

ThesetwochapterspavedthewaytothecentralquestionofhowtomakeithappenItisactuallyin

thiscontextthattheimportanceofpartnershipscanbefullyappreciatedTheshifttowardsasustainable

waterandenergyfutureisnotspontaneousThetransitiontowardsagreenwaterandenergyfuture

mustbetheresultofadeliberatesocialeffortItmeansbuildingthesocialandinstitutionalpreshy

conditionsrequiredtotakeadvantageoftheexistingopportunitiesandalsoimpliesmakingdifficult

choicesbuildingnewassessmentframeworksdevelopingnewinstitutionsandtechnologiesandall

thechangesrequiredtoreaddressthewaywaterandenergyhavebeenmanagedinthepast

ThischaptercollatestheresponsesfromtheConferenceparticipantstothefollowingcentralquestion

WhymightpartnershipsofferbettersocialresponsestothewaterandenergynexusThebasic

hypothesisresultingfromthediscussionsheldinZaragozaisthatpartnershipsareinnovative

institutionalarrangementsthatarebettersuitedthantraditionalinstitutionalsetupstotakeadvantage

oftheexistingopportunitiesandprovidesuperiorresponsestothewaterenergynexuschallenges

51WhyPartnerships

Thelogicbehindthecriticalneedtobuildeffectivepartnershipscanbededucedfromthemultiple

interlinksandtheneedforintegratedsolutionsintheWaterandEnergynexusCopingwiththe

challengesposedbywaterandenergyinthelongtermispossiblewithintherangeoftheresources

availableaswellastheexistingknowledgeandbesttechnologiesavailableButthiswouldnot

happenasaresultofthespontaneousactionorindividualdecisionsmadebyanywaterandenergy

firmoruserinisolation withoutconsideringtheactionstakenbyalltheothers

Beyond competition and individual decisions

Whileusefultofosterinnovationandtheefficiencyintheuseofwaterandenergycompetitionand

individualdecisionsontheirownhaveaverylimitedcapacitytosolvesomeofthecollectivechallenges

involvedinthesearchofasustainablefutureforwaterandenergyInfacttheuncoordinateddecisions

ofacompetitivemarketmightbeoneofthedrivingfactorsofwaterandenergyscarcity

Theenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

Thesechallengesareoutofthescopeofanypublicorprivateorganization

Inthemarketeconomytheperceptionofindividualfirmsislimitedandthismightleadtowrong

decisionsintheshorttermandtounsustainabledecisionsinthemiddleandlongtermFirmsare

increasinglyawareoftheimportanceoftakingintoaccountthepricesandtheeffectiveavailability

ofwaterandenergyinthefutureasacriticalelementtoassessthecostsandthebenefitsofnew

projectinvestmentsButduetoinformationgapsandthecomplexnatureoflongterminvestment

decisionsdecisionscontinuetobetakenwithlimitedinformation

Considering scarcities today and in the future

Manywaterandenergydevelopmentprojectsareforexampleappraisedandapprovedbyassuming

thatfuturewaterresourceswillbesimilartopresentandpastwaterresourcesandthatenergy

priceswillnotsubstantiallychangeinthenearordistantfuture Assessingthecostsandthebenefits

ofnewinvestmentprojectsinthewaterandenergyindustryrequireconsiderationofthefuture

availabilityofbothresourcesaswellastheveryshortterm

24

25

5M

akin

gth

eC

ase

for

Part

ners

hips

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable

52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

25

5M

akin

gth

eC

ase

for

Part

ners

hips

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

Whenforexamplewaterandenergyscarcitiesareunderestimatedbusinessdecisionstendtoignore

therisksaheadAsusualwhenfuturescarcitiesareoverestimatedthemarketeconomycanleadto

anexcessiveinvestmentinmanywaterdependentactivitiessuchasirrigationhydropowerandurban

developmentThismightleadtoanoveralldemandofwaterthatwouldnotbepossibletosatisfyat

leastnotallthetimewiththelimitedresourcesavailableTheonlywaytoavoidexcessiveinvestment

inwaterdevelopmentisbycoordinatingtheinvestmentsintoasustainablelevelofwateruse

Oncewaterbecameapriorityitallowedfocusingonthecriticalquestionsinthepowergeneration

processtheoneswithhigherpotentialtosavewaterresourcesandfocusonboththeefficiencyof

theenergytransformationprocessinordertoreducetheresidualriskandinthecoolingprocesses

bythesearchformorewatereffectivealternativesSincethedevelopmentofdrycoolingtechnologies

almostwaterfreethermalpowerplantsbecamefeasibleandcompetitivewithinsomestillrestrictive

butincreasingmarketconditionsInthesamesenseimportantadvanceshavebeenregisteredin

thequestforalternativesourcessuchaswastebrackishandseawaterandtherecirculationand

recyclingofwater

Allthesetechnologiesseemtohavebrokenupintheenergyindustryandhavepavedthewayfora

robustwaterindependentenergyfutureHowevertechnologicaltransitionsintheseareasproceed

smoothlyandexceptinthemoreadvancedcountrieseveninthemoreoptimisticscenariotraditional

technologieswillprovidethebulkofthenewenergyflowsrequiredduringthenextdecadesPartnerships

mayalsoservetopromotealigningtheexistingincentivessoastospeedupthediffusionofwater

efficienttechnologiesintheindustryandanticipatethereplacementofthetraditionalplansalready

inoperation

Abriefbalanceoftheinnovativeadvancesregisteredsofarinpowergenerationistheoutstanding

potentialthatisnowavailabletohandletheimplicationsforwaterintermsofthegrowingdemand

forenergyataglobalscaleThewaterefficiencygapbetweentraditionalandwaterefficientpower

generationtechnologiesiswideenoughtomakeroomforawaterfreeenergysectorandthusto

relaxthechallengeofbuildingawatersustainablefutureIfsustainabledevelopmentisanoption

thatfitswithintheresourcesandtechnologiesavailablethediscussionaboutmakingithappen

shiftsfromtechnologytogovernance

Investments may halt

Butinthesamewaythatmarketincentivescanleadtoinvestmentbubblestheycanalsoproduce

theoppositeeffectThiscanhappenwhenwaterbecomesscarceIffirmsperceivethatfuturewater

suppliesareuncertainthiswouldaffecttheirwillingnesstoinvestinnewenergydevelopmentprojects

andasthisperceptionissharedbyanyindividualfirmthismightleadinvestmentsinenergytoa

suddenhaltwiththederivedproblemstotherestoftheeconomyinthemediumterm

Businesses need governments

Despitetheremarkableadvantagesofmarketsandcompetitiontotriggerinnovationsandpromote

usefulinvestmentsandresourceefficiencymakingbusinessandmarketsworkforthebenefitsof

sustainabledevelopmentrequiresacertainlevelofcoordinationAsaminimumnecessaryrequirement

thiscoordinationmustguaranteethatalltheenergyandwaterusedintheeconomyfitsintherange

oftheobtainablesuppliesoftheseresourcesproducedandusedinawaythatdoesnrsquotcompromise

thecontinuousprovisionofthetwovaluableresources

Thegovernmentisneededtocreatetherightenvironmentandensureregulationandcompliance

aswellasprovidingincentivesThemainconclusionisthatmanagingalltheinterdependencies

involvedintheNexusrequiresasortofcoordinationthatcannotbeguaranteedonlybythemarket

environment

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable

52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

Whileindividualbusinessesareingeneralwillingtointernalizewaterconcernsintheirdecisions

onlongterminvestmentsandriskmanagementthisisnotnecessarilytruefortheproductionof

fuelsThisissuebecomescriticalwithemergingfuelsthatmightbeintensiveintheuseofwater

resourcessuchasnaturalgasobtainedbyfrackingandbiofuelsInthefirstcasetheprotectionof

waterpropertyrightsbecomesacriticalconditiontoavoidthefurtherdepletionofalreadywater

stressedareasandtocontroltheincentivestotakeadvantageofirrigationsystemsTechnology

optionsallowforfreshwaterindependentfrackingmethodsandrainshyfedgrowingofbiofuelsbutthis

willonlybecometheselectedoptioniffirstlywateruserightsareproperlycontrolledandsecondly

theincentivesinplacefavourthewaterefficientalternatives

Governments need businesses

Butsuccessfulpublicactionsareinconceivablewithouttheactiveinvolvementofbusinessesand

otherprivatepartnersBypursuingcollectiveinterestgovernmentsandpublicagenciesareina

betterpositionthanbusinessandhouseholdstounderstandwaterandenergychallengesfroma

widerenvironmentalsocialandeconomicperspectiveHoweverforvariousreasonstheyarenot

abletocopewiththesechallengesontheirown

Governmentshaveattheirdisposalthemeanstodevelopandmaintainalevelplayingfieldbutthe

importantdecisionsonhowbyhowmuchandforwhomtoproducethewaterandenergyservices

mostlybelongtoindividualsratherthangovernmentsThegovernmentcandoitsbesttopromote

innovationandtospeedthediffusionofthebesttechnologyavailablebutintheendtheseprocesses

aretriggeredbydecisionsmadebyindividualfirmsGovernmentsmayraiseawarenessstandardize

normsanddevelopincentivestopromoteanefficientandsustainableuseofwaterandenergybut

thefinaloutcomewillbetheeffectofaplethoraofindividualdecisionstakenbymanyindividuals

thatusewaterandenergyforconsumptionorforproducinggoodsandservices Forallthese

reasonssuccessfulgovernmentsneedbusinessandtechnologypartnersaswellastheactive

involvementoffirmsandhouseholds

Reducing enforcement and implementation costs

LegitimacyandsocialacceptabilityisanessentialingredienttowaterandenergypoliciesItreduces

enforcementandother implementationcostsandmakestheempowermentofbusinessand

householdseasierCooperationisimportanttoagreeonasharedvisionofthechallengesaheadand

todesignpoliciesthatwillensurecontinuousadvancesintheobjectivesofwaterandenergyefficiency

accessibilityandsustainability

Foster interdisciplinary knowledge development and exchange

Asfarasintegratedresponsesarerequiredpartnershipsmightservetofosterinterdisciplinary

collaborationbetweentheenergyandwatersectorsandtoprovidetheplaygroundfortheknowledge

exchangenecessarytodevelopandimplementintegratedmanagementresponses(seeboxbelow)

26

27

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable

52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

27

Mak

ing

the

Cas

efo

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rshi

ps

5

Theenergysectorfacesseveralwaterndashrelatedrisksthatcanonlybetackledwithinabetter

integratedwaterandenergypolicyframework

bullIncreasedwatertemperaturescanpreventpowerplantsfromcoolingproperlycausing

themtoshutdownordecreaseproductionincurringfinancialandeconomiclosses

bullDecreasedwateravailabilitycanaffectthermalpowerplantshydropowerandfuelextraction

processesduetotheirlargewaterrequirements

bullRegulatoryuncertaintyincludingrestrictedoperationalwaterpermitsrisingdischarge

compliancecostsandwithdrawallimits

bullSealevelrisecouldimpactcoastalenergyinfrastructureandpowerplantoperations

bullWaterqualitycanimpactenergyoperationsifitisnotregulatedandmanagedadequately

Partnerships can help

PartnershipsareameanstomanydifferentendsAmongothervaluableintermediateobjectives

theymightallowfor

bullIntegratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bullImprovedwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullDevelopingtransparentassessmentcriteriatoevaluatetheoutcomesofbothwaterandenergy

policiesintermsofsustainabilityratherthanbytheparticularobjectivesofeacharea

bullBroadeningthewaterandenergypolicyassessmentsoastomakethemconsistentwiththe

needtoprotectandpreservethewaterandenergyrelatedecosystemsandthevarietyofservices

providedbythemwhicharecriticalforresilienceandlongshytermenvironmentalsustainability

bullLearningfromeachotherrsquossuccessesandfailureswithinthewaterandenergycommunities

bullIdentifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty bullIdentifyingandimplementingmutuallybeneficialsolutionsthataremoresustainable

52Challengesforpartnerships

Inspiteoftheimportantgainsthatcanbereapedfromabetterintegratedwaterandenergyresponse

buildingenablingandeffectivepartnershipsisachallengeonitsown

Overcoming Institutional lock-ins and path dependence

Existinginstitutionsandlegalframeworksareestablishedtoimplementspecificactionssolutions

lsquoInstitutionallockshyinrsquomaybepreventingthenecessarychangetomovetowardsintegrationThiscan

betheresultofmanyfactorsincludingtraditionvestedinterestpoorregulationsandmanyothers

thatcantrapbusinessesandsocieties intowellestablishedanddifficulttochangedecision

frameworks

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

TheWater-EnergyNexusthespecialroleofbusiness

Theworldrsquoswaterandenergysystemsarelinkedinmanywaysbothsectorsarenotonly

mutuallyconnectedbythewaterneedsoftheenergyproductionandtheenergyrequirements

ofthewaterindustry

BothareasarealsolinkedbytheircrossvulnerabilityAsmallunreliablesupplyofenergy

limitstheamountofwaterresourcesthatcanbemobilizedtoservehumanneedsorthe

productionofgoodsandservicesontheotherhandwaterrelatedrisksarealreadyan

importantconcernintheproductionofenergyinmanypartsoftheworldTraditionand

institutionalinertiamightstillfavourhandlingthesetwoproblemsseparatelybutasrecent

experiencesshowbusinessconcernsmightbeapowerfulforcetobreakinstitutionalsilos

openfreshcommunicationchannelsandpushtheneedtoprovideanintegratedresponseup

inthepoliticalsystem

TheWorldBankhttpgoogl5Rp1nx

Althoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeenregulated

andmanagedseparatelyThemutualignoranceisstillembeddedinthewaywaterandenergy

decisionsaretakenatdifferentlevelsfromthetopgovernmenttoindividualbusinessesandinstead

ofcontributingtomatchdemandsandsuppliesinthefuturetheymightaggravatewaterandenergy

scarcity

Currentenergyplanningisoftenmadeinamyopicwaywithoutconsideringchangesinwater

availabilityandqualityInabaselinescenariocharacterizedbytrendstowardsincreasedwaterand

energyscarcitythisistheequivalenttoignoringcompetingusesandtheimpactsassociatedwith

climatechangeamongmanyotherdeterminantfactorsoffuturewaterandenergysupplies

TheEnergySustainabilityChallenge(ESC)ABPInitiative

TheESCisaBPshyfundedconsortiumofexpertsfromleadinguniversitiesthatstudiesthe

complexrelationshipsbetweennaturalresourcesandthesupplyanduseofenergyThis

multishydisciplinaryprogrammeinvestigatestheeffectsofscarcityinnaturalresourcessuch

aslandwaterandmineralsonenergysupplyandconsumptionItalsoexamineshow

technologycanimproveenergyproductioninaresourceshyconstrainedworldhttpgooglfL1MvN

Moreinformationhttpwwwbpcomenglobalcorporatesustainabilityhtml

Thelackofforesightthatcharacterizesseparatewaterandenergyplanningtendstobereproduced

andreinforcedbylocalauthoritiesandbusinesseswhoappraiselongterminvestmentprojectsby

usingpracticalbutessentiallywrongceterisparibusassumptions Itisnotuncommontofindpower

generationprojectsthattakeforgrantedfuturewatersuppliesoralternativelywaterdevelopment

projectsthatassumefutureunlimitedaccesstoenergyatpricessimilartothoseofthepresent

Buildingpartnershipsmightbeanintegralpartoftheinstitutionaltransformationsrequiredtobreak

existinginstitutionallockshyinsInotherwordsacomprehensiveresponsetothewaterandenergy

challengesimpliesovercomingthecurrentinstitutionalsetshyupwherebothpolicieshavebeen

traditionallytaken

28

29

5M

akin

gth

eC

ase

for

Part

ners

hips

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

Overcoming technological lock-ins

Theenergyoptionsandthewateroptionsbeingconsideredneedtobeadaptedtochangingconditions

ofwaterscarcityandenergyoptionsHoweverinvestmentdecisionsbeingmadetodayorinthepast

yearsmaybelockingusintowaterintensiveenergyoptionsandviceversa

Infactpastresponsestocopewithwaterandenergydemandsthathavetraditionallyconsistedof

usingnonrenewableenergysourcesandthebuildingupofinfrastructureswhichwereabletotake

advantageoftheeconomiesofscaleandprovidethesuppliesofwaterandenergyrequiredbya

growingeconomymaybelimitingwhatwecandoandwhatwecannotdonowandinmanyyears

tocomeastheseinvestmentsneedtobeamortized Withlimitedwaterresourcessomeenergy

sourcesmaynotbeviablebutwemaybecontinuingtoinvestinthem(egcoal)

Atransitionneedstobemadefromnonshyrenewabletorenewableoptionsfromincreasingsupply

toawisemanagementoftheresourcesavailableandfrominfrastructuredevelopmenttoamore

balancedmixofsolutions

Itisimportanttoovercomethetechnologicallockshyinsbecauseoncetheopportunitiesavailableto

developwaterinfrastructureshavebeendevelopedandconventionalenergyresourceshavebeen

depletedtheonlyalternativestoreconcilewaterdemandandsupplywiththeobjectivesofasustainable

economyconsistsofmanagingwaterandenergydemandenhancingtheefficiencywithwhichboth

resourcesproduceuseanddevelopnewrenewableandnonshyconventionalsourcesThelessonsfrom

thepastbecomeobsoleteorunfeasibleandinnovationceasestobeoptional

Reshaping the role of financial and economic incentives

Thewaywaterandenergyarefinancedisanimportantpartofcurrentandfutureinstitutionalset

upsTraditionallythebulkofwaterandenergyinfrastructureshavebeenprovidedbythepublicsector

andthecostshaveonlypartiallytransferredtothemultiplebeneficiariesAbundantandcheapwater

andenergywhenavailablehavealwaysbeenconsideredapriorityforeconomicdevelopmentWater

planningforexamplehastraditionallybeengivenasubsidiaryrolebehindotherapparentlymore

relevantobjectivesforinstancefromagriculturalindustrialorlanddevelopment

Althoughwaterandenergypricesandotherincentiveshavebeenpartofthepolicydebatetheability

ofpricestoreflectthefinancialenvironmentalandeconomiccosthasrarelyrankedhighingovernment

prioritiesLowwaterandenergypricescanprecludemanyinvestmentdecisionsfromwaterand

energyThoughwaterusersmaypaymarketcompetitivepricesforenergysuppliesenergyproducers

havelittleornoincentivetoconservewaterduetolowpricesInothercasesenergydevelopment

inparticularinruralareaswhereaccesstofreshwaterisnotadequatelycontrolledmighthavebeen

oneimportantfactorbehindwaterovershyexploitationOneofthemostimportantchallengesinresponding

tothewaterandenergychallengeconsistsofchangingcurrentwaterandenergyincentivessuchas

realigningthoseindividualdecisionstothecollectivetargetsofsustainability

Newinnovativeoptionsrequiremobilizinghugeamountsofcapitalthatareoutofthescopeofany

singlebusinessandthelongperiodsoftimeforwhichmostwaterandenergyinfrastructuresmake

themunfeasibleintheabsenceofwaterandenergysecurity Thesizeoffutureinvestmentrequired

forbothdomainscannotbefilledsolelyfrompublicfinanceInvestmentstrategiesmayrequire

convincingprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition

forreturnoninvestment

The setting up of long term water and energy policy objectives

Theimportanceofpreservingthefutureoptionsneedstobegivenatleastthesameimportanceas

thesatisfactionofcurrentdemandsWaterandenergystrategiesneedtobesimultaneouslyrewired

forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof

waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely

inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable

futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible

asthewaterandenergysourcesthemselves

Dealing with asymmetries building fair and reciprocal alliances

Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin

ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand

enablingmutuallybeneficialagreements

TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith

theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous

withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal

orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration

Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan

waterinmostcountries

Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences

betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such

aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded

toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)

asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability

andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis

notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences

mightshapethemutualinterest

Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy

scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater

efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew

technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector

53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor

partnershipsandimprovecooperation

Making visible the risks of uncoordinated action

Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated

waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother

Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand

energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith

severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften

energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation

strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements

areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater

consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower

efficiencyalsoresultinginhigherGHGemissions

30

31

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

CapacityDevelopmentinSustainableWaterManagementCAP-Net

bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable

watermanagementItismadeupofapartnershipofautonomousinternationalregional

andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector

bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater

resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand

theachievementoftheMDGs

Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet

Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy

tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut

alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners

Encouraging firms and stakeholders to take a long term view and recognize vested interests

PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore

focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives

ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand

adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition

andenforcementofpropertyrightsamongothers

Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto

contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto

recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina

betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother

stakeholderswiththecommonobjectivesofsustainabledevelopment

GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote

socialdialogueshareinformationandtransparency

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally

caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The

studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers

WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear

requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped

focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater

usebyallsectorshttpgooglJGVw2H

TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica

servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease

concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis

Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover

theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof

potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC

Moreinformationhttpwwwgreenpeaceorg

forthelongtermThoughimportantintheshorttermcurrentdeficitsandunsatisfieddemandsof

waterandenergycannotshadeorrelegatelongtermprioritiesandinparticulartheobjectivetorely

inasustainablemixofbothwaterandenergyresourcesasaconditionforbuildingasustainable

futureThetraditionaloptionstoputmoreandmorewaterandenergyintouseareasexhaustible

asthewaterandenergysourcesthemselves

Dealing with asymmetries building fair and reciprocal alliances

Differencesbetweenthewaterandenergybusinessesandcommunitiesneedtoberecognizedin

ordertounderstandtheimportanceofbuildingupanopendialogueenablingtrustfulrelationsand

enablingmutuallybeneficialagreements

TheenergysectorisawellshyintegratedmarketwithglobaldimensionsandcompetitivepricesWith

theglobalenergymarketestimatedat6trillionUSdollarsannuallytheenergysectorissynonymous

withlsquobigbusinessrsquoInclearcontrastwaterisaconstellationofsmallmarketsonlyrelevantatlocal

orregionalscalewhosepricesarerarelydefinedbycompetitionratherthansetbytheadministration

Theenergysectoriswellfundedhighlyorganizedandgreatlyattractsmorepoliticalattentionthan

waterinmostcountries

Thereciprocalinterestinbuildingclosecollaborationlinksalsodependsontheoutstandingdifferences

betweenthetwosectorsForexampleenergyisessentialfortheproductionofwaterservices(such

aswatertreatmentpumpingdeliveryandwastewatertreatmentanddisposal)Waterisneeded

toproducehydropowertotransferwater(fromsteam)asapollutionremover(forheatdissipation)

asameanstostoreenergyasenhanceroffuelmining(infracking)etcThiswaywateravailability

andwaterbecomesacriticallocationcriterionforanenergydevelopmentprojectwhileenergyis

notingeneralafactorthatmightconstrainthelocationofwaterdevelopmentThesedifferences

mightshapethemutualinterest

Pricesinthemorecompetitiveenergymarketsmightfluctuateandreflectbettercurrentenergy

scarcitiesandmightactasabetterincentiveforenergyefficiencythanwaterpricesdoforwater

efficiency Inthesamewaytheinnovationsanddevelopmentaswellasthediffusionofnew

technologiesseemtoproceedatahigherspeed intheenergysectorthanthewatersector

53 PolicyandGovernancewhatcangovernmentsdotocreateanenablingenvironmentfor

partnershipsandimprovecooperation

Making visible the risks of uncoordinated action

Enablingpartnershipsrequiredeliberateactionstoshowtherisksinvolvedinpursuinguncoordinated

waterandenergystrategyononesideandthebenefitsofcoordinatedactionsontheother

Coordinationthroughpartnershipsisaninstrumenttorestorethecoherencebetweenwaterand

energypoliciessoastoavoidunsustainabletrendsIncoherentpoliciesmightfindthemselveswith

severescarcityofoneresourceortheotherndashorbothOptionstoincreasewatersecurityareoften

energyshyintensiveTheyincludevastlyincreasedenergyrequirementsofwatersupplyaugmentation

strategiesndashsuchaslonghaultransfersanddesalinationInadditionwaterefficiencyimprovements

areinsomecasesmadeattheexpenseofenergyefficiencyForexampleeffortstoreducewater

consumptionatpowerplantsareaccompaniedbythetradeoffofincreasedcostsandlowerpower

efficiencyalsoresultinginhigherGHGemissions

30

31

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

CapacityDevelopmentinSustainableWaterManagementCAP-Net

bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable

watermanagementItismadeupofapartnershipofautonomousinternationalregional

andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector

bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater

resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand

theachievementoftheMDGs

Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet

Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy

tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut

alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners

Encouraging firms and stakeholders to take a long term view and recognize vested interests

PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore

focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives

ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand

adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition

andenforcementofpropertyrightsamongothers

Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto

contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto

recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina

betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother

stakeholderswiththecommonobjectivesofsustainabledevelopment

GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote

socialdialogueshareinformationandtransparency

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally

caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The

studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers

WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear

requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped

focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater

usebyallsectorshttpgooglJGVw2H

TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica

servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease

concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis

Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover

theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof

potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC

Moreinformationhttpwwwgreenpeaceorg

31

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

CapacityDevelopmentinSustainableWaterManagementCAP-Net

bullCapshyNetaUNEPinitiativeisaninternationalnetworkforcapacitybuildinginsustainable

watermanagementItismadeupofapartnershipofautonomousinternationalregional

andnationalinstitutionsandnetworkscommittedtocapacitybuildinginthewatersector

bullNetworkshaveproventobeeffectiveatpromotingtheunderstandingofintegratedwater

resourcesmanagementandplayakeyroleinsupportingthedevelopmentofIWRMand

theachievementoftheMDGs

Moreinformationhttpwwwcapshynetorgcontentintroductionshycapshynet

Byshowingtheimportanceofwatertomeetfutureenergydemandsandtheimportanceofenergy

tomeetfuturewaterdemandsandformeetingclimategoalsgovernmentsraiseawarenessbut

alsomakethegainsoffurthercollaborationvisibletoallitspotentialpartners

Encouraging firms and stakeholders to take a long term view and recognize vested interests

PartnershipsneedabetterdefinitionofpublicandprivaterolesPublicauthoritiesmustbemore

focusedontheendsThegovernmentrolecanbebetterdefinedbyitsfocusonlongtermobjectives

ofsustainabledevelopmentsuchasthebuildingupofwaterandenergysecurityresilienceand

adaptabilitythecurbingofdegradationprocessesthecontrolofwatersourcesandthedefinition

andenforcementofpropertyrightsamongothers

Governmentsmaybefocusedinfindingandpromotingthepartnershipswiththebestpotentialto

contributetolongtermwaterandenergygoalsPartnershipsrepresentauniqueopportunityto

recognizethevestedinterestofthepartsinvolvedsuchastheinterestoftheenergyindustryina

betterguaranteedsupplyofwater inthefuturebutalsotoempowerallbusinessandother

stakeholderswiththecommonobjectivesofsustainabledevelopment

GreenpeaceinitiativestopushtheWaterEnergyNexusupinthepoliticalagendapromote

socialdialogueshareinformationandtransparency

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

InIndiathenationaldebateonwaterscarcityforlargescaleexpansionsofcoalhasnotreally

caughttheattentionofpolicymakersuntilGreenpeacecommissionedastudyin2011The

studyconductedbyIITDelhianalysedthepresentandfuturewaterdemandsovertherivers

WardhaandWaingangainVidarbhaincludingthe1700Millioncubicmetresofwaterperyear

requiredforthecoalbasedthermalpowerplantsproposedintheregionThishashelped

focusthedebateonthelongtermpolicyoptionsaswellasontheontheefficiencyofwater

usebyallsectorshttpgooglJGVw2H

TheindepthresearchintotheenergyshywaternexuspromotedbyGreenpeaceinSouthAfrica

servedtoarticulatethediscussionaroundwaterandenergychoicesIthasservedtoincrease

concernsaboutthelikelyimpactofnewcoalshyfiredpowerstationsonafuturewatercrisis

Informationisbeingcollectedtodocumentbothhealthdamagesandtheimpactofcoalover

theavailabilityandqualityofwaterincoastalareasStudieshaveconceitedtheinterestof

potentialinvestorsandservedtoassessthebusinessrisksinvolvedhttpgoogldMH0SC

Moreinformationhttpwwwgreenpeaceorg

PartnershipsarethenanimportantelementtoimprovewaterandenergygovernanceOnoneside

individualbusinesslocalauthoritiesandotherstakeholdersareforcedtoshowthattheyarenot

pursuingtheirvestedinterestsattheexpenseofthegeneraloneandthatallpartnersinvolvedare

pursuingacommoninterestontheother

TheWaterforEnergyFramework(W4EF)InitiativeAnActionGroupwithinthe

EUEIP-Water

UndertheumbrellaoftheEuropeanInnovationPartnershipforWaterElectriciteacutedeFrance

(EDF)leadstheActionGroupW4EFThisgroupisanalliancebetweenvariousinternational

stakeholderstohelpdevelopacomprehensiveevaluationframework(W4EF)whichcanprovide

commonandcoherentdefinitionsandindicatorstoassesstheenergyproductionrsquosimpacton

waterTheActionGroupwillimplementthemethodologyinacoherentwayandensurelarge

disseminationacrosstheEuropeanenergyindustrypotentiallyonanevenlargerscale

httpgooglRGGr7U

Moreinformationhttpwwweipshywatereuworkingshygroupsactionshygroups

Inthiswaythroughlinkingdiverseindividualinterestspartnershipsallowforbuildingbroadalliances

aroundlongtermvisionandobjectivesGovernmentsfirmsandstakeholdersmustbeencouraged

totakealongershytermviewtoinvestinwaterconservationandinvestmentsinnewenergysources

assuminghighercostsintheshortterminexchangeforlongshytermbenefitsPublicawareness

creationpublicparticipationandeducationisessentialtofostercollectiveactionsaswellastomake

individualdecisionsontheuseofwaterasanenergycompatibleresourcewithsustainablesupplies

Promoting better governance transparency trust and accountability

Thetransitionalprocessmightcontributetowardsbettergovernancethroughimprovedtransparency

asarequirementofmutualtrustandaccountability Partnershipsmightbecomeactivesocial

agentsthatcouldcontrolandavoidpoorgovernancecorruptionandshortsighteddecisionsthat

resultinmissingopportunitiesAfirststepinimprovinggovernanceconsistsofdevelopmentoutcome

orientedandperformance indicatorspromotedbothby localand international institutions

Improving regulatory bodies

Amongtheconditionsthatenabletheformationofeffectivepartnershipsaspecialmentionis

reservedfortheneedofimprovedregulatorybodiesBesidesitsimportancetocontrolfirmsrsquo

behaviorregulationmustbeflexibletomakeroomforinnovationcosteffectivenessandother

contributionsfromwaterandenergyfirmsAstrongregulatorybodywouldbecapableoftapping

theleaksanddiscoveringroomforimprovementinthewaterandenergymanagementsystems

throughbenchmarkingandsettingstandardsImprovementsinparticipationofinterestedparties

onwaterandenergyinthedevelopmentofpolicyandlawsrelatedtoenergyandwaterusesothat

theyaremoreflexibleandadaptabletobeabletorespondtoandormitigateextremeeventsand

environmentalimpacts

32

33

Mak

ing

the

Cas

efo

rPa

rtne

rshi

ps

5

Regulationscantriggerimportantadvancesinwaterandenergyefficiency

bullLabelingobligationsonwaterefficientappliancesmightsimultaneouslyincreasewaterand

energyefficiencyasinSingapore

bullCompulsorybuildingregulationsmightleadtoenergyandwaterefficientconstructions

ForexamplemandatorysolarhotwatersystemsonnewbuildingsinIsrael

bullIncentivestoputresidualsintovaluemightsavewaterandenergyForexampletheuse

ofwasteheatfromthermoelectricpowerplantsfordesalinatingseawatertoproducereliable

drinkingwaterintheMiddleEast

bullStrictwastedisposalcontrolsmightleadtofurtherenvironmentalimprovementsThisisdone

withtherecyclingofeffluentfrombioshyrefineriestoreducenegativeimpactsonfreshwater

ecosystemsinBrazil

Establishing incentives

Animportantpriorityforwatergovernanceistheimplementationofenablingincentivesforpartnerships

tobeestablishedandmaintainedAppropriatepricingstructurescanprovidesufficientrevenuesfor

continuedoperationandmaintenancebutatthesametimepricesmustnotbeanimpedimentto

makewaterandenergyaffordable

Whatincentives

FossilfuelconsumptionsubsidiestotalledUS$523billionin2011(anincreaseofalmost30

overthetotalfor2010)Financialsupportforrenewableenergybycomparisonamounted

toonly$88billionin2011andincreasedbyanother24in2012

Part

ners

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Besidesitsroleasfinancialinstrumentseconomicinstrumentsareincentivesthatcanbedesigned

topromotethesustainableuseofwaterTheseinstrumentsincludetaxespollutionchargessubsidies

andmarketsforbuyingandsellingaservicearesourceortherightstousetheserviceorresource

Subsidiesonwaterandenergycanbeanimportantdriverofenergyinefficiencyandunsustainable

waterusePricingandsubsidiesneedtobereorientedfrompromotingconsumptiontoenhance

sustainablewaterandenergyuse(Seeboxbelow)

Waterandenergyincentivesmustalsobecoordinatedsoastoavoidnegativecrosseffectsfor

examplemassiveaccesstoelectricityinruralareasatasubsidizedpricemightexacerbategroundwater

pumping

Improving institutional coordination

OECDworkonwatergovernance(2011)shedlightonmanyobstaclestoeffectivecoordination

betweenwaterandenergypoliciessuchasthelackofinstitutionalincentivesandplatformsto

managetradeshyoffsinterferenceoflobbiesabsenceofstrategicplanningandsequencingdecisions

andintensivecompetitionbetweenthedifferentministriesandpublicagencies

Institutionalcoordination

bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater

ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater

Agencyforconcessionstoexploithydropowerpotential

bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand

returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency

isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater

useasawayofmitigatingclimatechange

bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead

oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand

CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry

bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology

SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater

resourceplanningbyaddingtheenergydimensiontothepolicies

34

35

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ice 6BuildingPartnershipsndashpartnerships

inpractice

ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber

andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude

partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures

suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand

energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy

researchandinnovation

ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand

WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented

below

61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies

Changes in the business strategy to be less exposed to water risks

Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas

fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo

decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe

traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith

otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement

inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless

dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks

Two way dialogue to build a stable regulatory framework

Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater

securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory

frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling

environmentforinnovation

Part

ners

hips

fori

mpr

ovin

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and

ene

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acce

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and

sus

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Fostering interdisciplinary collaboration

Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors

canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions

Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin

thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy

andwaterresourcescomprehensively

TheWorldBankrsquosThirstyEnergyInitiative

UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy

whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource

managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak

disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness

oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors

httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus

Institutionalcoordination

bullInBrazilinordertolimittheimpactofwaterextractionforenergyproductiononfreshwater

ecosystemsthelegalframeworkrequiresapreviousauthorizationfromtheNationalWater

Agencyforconcessionstoexploithydropowerpotential

bullInEnglandandWales89oftheenergyusedinabstractingtreatingdistributingusingand

returningwatertotheenvironmentisusedonhotwaterinthehomeTheEnvironmentAgency

isnowworkingwiththeEnergySavingTrusttodeveloppolicyinthisareatotargethotwater

useasawayofmitigatingclimatechange

bullInSpaintheNationalWaterCouncilincludesrepresentationoftheenergysectorbythehead

oftheDirectorateGeneralforEnergyPolicyandMinesMinistryofIndustryTourismand

CommerceaswellasarepresentativefromtheSpanishAssociationofElectricalIndustry

bullInAustraliaresearchersattheAustralianNationalUniversityandtheUniversityofTechnology

SydneyhaveformedtheClimateshyEnergyshyWaterLinksprojecttobuilduponexistingwater

resourceplanningbyaddingtheenergydimensiontothepolicies

34

35

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ice 6BuildingPartnershipsndashpartnerships

inpractice

ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber

andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude

partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures

suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand

energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy

researchandinnovation

ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand

WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented

below

61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies

Changes in the business strategy to be less exposed to water risks

Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas

fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo

decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe

traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith

otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement

inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless

dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks

Two way dialogue to build a stable regulatory framework

Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater

securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory

frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling

environmentforinnovation

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

Fostering interdisciplinary collaboration

Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors

canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions

Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin

thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy

andwaterresourcescomprehensively

TheWorldBankrsquosThirstyEnergyInitiative

UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy

whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource

managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak

disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness

oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors

httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus

35

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uild

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ners

hips

ndashp

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ract

ice 6BuildingPartnershipsndashpartnerships

inpractice

ThereisnowawidevarietyofwaterandenergypartnershipsworldwideTheyvaryinsizenumber

andtypeofpartneraswellasinthescopeoftheirobjectiveandrealmsofcooperationTheyinclude

partnershipsforpolicydevelopmentandplanningaswellasforthedevelopmentofmajorinfrastructures

suchasindustrypartnershipsforefficiencyimprovementlocalpartnershipsbetweenwaterand

energyutilitiesandbetweenlocalauthoritiesandotheractorsandalsopartnershipsforpolicy

researchandinnovation

ThisexperiencehasbeenanalysedbytheWorldBankUNIDOUNEPAquafedICLEIUNUand

WWAP(httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml)andispresented

below

61TheBusinessCaseforPartnershipstopromoteintegratedplanningandpolicies

Changes in the business strategy to be less exposed to water risks

Intheenergyindustryevidenceofexposuretorealratherthanhypotheticalwaterrelatedriskshas

fosteredanimportantchangeinthebusinessstrategyregardingwaterresourcesInthelasttwo

decadesmanyelectricitygenerationfirmsandtheirrepresentativesshiftedgraduallyfromthe

traditionalwayoftryingtosecurewaterfortheirinfrastructuresandeventuallycompetingwith

otheruserswhentheseresourceswerenotabundantenoughtowardsamoreactiveinvolvement

inpromotingintegratedresponsesandatthesametimedevelopingstrategiestobecomeless

dependentonwaterandthusmoreresilientandadaptabletowaterrelatedrisks

Two way dialogue to build a stable regulatory framework

Innovativecorporatestrategieswithinenergytendtosubstitutetheclassicaldemandforwater

securitybyatwowaydialoguewithothersectorsandgovernmentstobuildastableregulatory

frameworktotacklelongtermwaterandenergypolicyinteractionsandcreateanenabling

environmentforinnovation

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

Fostering interdisciplinary collaboration

Businessesthatconsiderfosteringinterdisciplinarycollaborationbetweenenergyandwatersectors

canprovidetheknowledgeexchangenecessarytodevelopandimplementintegratedsolutions

Withinthiscontextprivatepubliccollaborationbecomesapriorityformajorkeystakeholdersin

thesetwosectorstobuildcountrycapacitybyidentifyingwaterconstraintsandplanningenergy

andwaterresourcescomprehensively

TheWorldBankrsquosThirstyEnergyInitiative

UnderthenewscenariotheWorldBankhasembarkedonaglobalinitiativethirstyenergy

whichquantifiestradeshyoffsandidentifiessynergiesbetweenwaterandenergyresource

managementandaimstohelpgovernmentsprepareforanuncertainfutureandbreak

disciplinarysilosthatpreventcrossshysectoralplanningItfocusesonincreasingawareness

oftheurgentissuesamongrelevantstakeholdersinbothwaterandenergysectors

httpwwwworldbankorgentopicsustainabledevelopmentbriefwatershyenergyshynexus

Main results

Thenewcollaborativearenahasalreadyallowedthebuildingofabetterunderstandingofmutual

dependenciesandsynergiesbetweenwaterandenergyasmostofthecasestudiesconsideredin

thisreportdemonstrateTheyhavealsohelpedtoraiseawarenessandhighlighttheimplications

ofdifferentenergydevelopmentscenariosoverfreshwaterrelatedecosystemsandprobablymore

importantlyhavepushedtheinterestinenhancingwatersustainabilityasanintegralelementto

shapelongtermpublicpolicyandbusinessstrategiesintheenergyindustry

Thenewscenarioalsocreatedtheconditionsforjointresearchandinnovationeffortsaroundthe

decouplingofenergydevelopmentfromwateruseThishasbecomeabusinessprioritycoupledwith

increasedsupportfromnationalresearchanddevelopmentpoliciesOneinterestingexampleconsists

oftheemergenceofwaterconcernsascriticalcriteriafortechnologychoiceswithintheelectricity

generationsector

EnergybusinesseshaveintegratedwaterconcernsindecisionsontechnologyandlocationBesides

internalfirmdecisionsandtechnologychoicesgovernanceisstillimportantinthetransitiontoalow

carboneconomyandawaterefficientenergysystem

EnhancingtheroleofWaterintheEnergyPortfolio

HydropowerisaflexibleenergysourceDifferentfromnuclearplantsthatarebetteroperated

withaconstantflowofenergyandfromweatherdependentrenewablesourcessuchas

solarandwindpowerplantswaterpowersupplycannotbepredictedinadvancehydropower

offers ameanstostoreenergythatcanbedelivered

Combinationofdifferentpowersourcesoffersthepossibilitytotakeadvantageofthisdistinctive

characteristicofhydropowerInLaMuela(Spain)twointerconnectedreservoirswhichfall

morethan500metersofferthepossibilitytousetheoffshypeakexcesssupplyfromthethermal

plantstopumpbackthewaterintotheupperreservoirOntheislandofHierro(Spain)a

similarschemehasbeendeveloptostoretheexcessenergyproducedbywindmillsInboth

caseshydropowerservesasabufferstocktoadaptwaterdemandandsupplyandtoputinto

valuesomeenergythatwouldhaveotherwisebeenlost

MoreinformationhttpgooglicIiGCandhttpgooglpbSZ67iexcl

Publicprivatedialogueisalongtermtaskwhichallowsbuildingacommonunderstandingthat

enablesthebuildingupofcoherentwaterandenergypoliciesbasedonlongtermchallengesand

verifiableoutcomesthecreationofcommonandtransparentinformationsourcesthecontroloflong

termrisksandstreamingtheseobjectivesintoresearchandinnovationpolicies

36

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PilotAssessmentoftheWater-Food-Energy-EcosystemsNexusintheAlazaniGanickBasin

UNECEincooperationwithpartnersnotablytheRoyalInstituteofTechnology(KTHStockholm)

andtheFoodAgricultureOrganization(FAO)hasbeendevelopingahighlyparticipatorynexus

assessmentmethodologyfortransboundarybasinswithanimportantcapacitybuilding

dimensionThisisbeingappliedwithrelevantsectorministriesandotherstakeholdersfrom

AzerbaijanandGeorgiawithaviewtoapplyinganintersectoralapproachtoresource

managementtakingintoaccounttheinterrelationsbetweenwaterlanduse(agriculturein

particular)theenergysectorandecosystemsintheAlazaniGanikhRiverBasinAbetter

understandingofthecomplexinterlinkagesbetweentheseresourcesandjointidentification

ofwaystostrengthensynergiesandpolicycoherenceinthemanagementofthesedifferent

resourcesisnecessarytoreducetensionsbetweensectoralobjectivesinparticularin

transboundarysettingsAsetofbasinsinthepanshyEuropeanregionAfricaandAsiawillbe

assessedbymidshy2015undertheUNECEWaterConventionusingthesamemethodologyin

revisedform

httpgoogl5Lo4cb

TheNexusDialogueonWaterInfrastructuresSolutions

FollowingthecommitmentmadeintheBonn2011NexusConferencetheIUCNisleading

thepartnershipwiththeInternationalWaterAssociation(IWA)andtheUSStateDepartment

Thedialogueisdesignedtobringtogetherkeyactorsfromeachofthewaterfoodandenergy

sectorstobuildpartnershipsneededtotakepracticalcollaborativestepsincreatingand

Part

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implementingwaterinfrastructuresolutionsthatwillaccelerateactiononoptimisationof

thenexusHencethedialogueprocesslikelyhasmoresignificanceasaplatformforbuilding

partnershipsthanitdoesintermsofthepartnershipwhichhascometogethertoorganise

thedialogue

wwwwaternexussolutionsorg

62IndustryPartnershipstoEnsureWaterandEnergyEfficiencyandSustainability

Waterandenergyaretwoessentialinputsintheproductionofalmosteveryoneofthemanufactured

goodsthatcharacterizeamoderneconomy

ldquoIndustryisessentialtoeconomicdevelopmentRapidindustrializationhasbeenandcontinues

tobethemaindriverforincomeandjobcreationandthereforeacceleratingdevelopmentand

povertyreductionindevelopingandtransitioncountriesisessentialrdquo(UNIDO2011)Economic

developmentrequiresanenablingbusinessenvironmenttopromoteinvestmentsandindustrial

developmentaswellasthesimultaneousexpansionofcriticalinputssuchaswaterandenergy

whichareessentialformanufacturing

ReapingthebenefitsosalonglastinggovernmentBusinessDialogueintheUSA

bullCollaborationintheUSAhasenabledtheinvestmentofmorethan600mUS$todevelop

coolingtechnologies

bullFrackingcompaniesarereportedtobetryingtominimizewaterconsumption

bullFirmsinsemiaridzonesintheUShaveincreasedpreparednessforawaterfuturebased

onnonshyconventionalwatersources(Brackishwasteandseawater)

bullWaterisnowoneofthemainobjectivefunctionsinenergyresearchMorethan30laboratories

involvedinenergyresearchhavegraduallymovedfromsinglecriteria(costminimization)

tomultiple(sustainability)

bullIrrigatedbiofuelshavebeenpushedbackinIndianaandOregon

bullPricesinwaterstressedareashavepushedpowerplantstowardsdrycoolingandhave

madewateradriverofinnovationbypushingfrackingtoalternativeresources

SourceMichaelHighttowerSandiaNationalLaboratorieswwwsandiagov

Aligningbusinessinteresttosustainabledevelopmentrequireseffectivepartnershipstopromotethe

kindsofindustrialdevelopmentthatbeingcompatiblewithmarketincentivesarealsoamechanism

toprotectsocietyandtheenvironmentfromtherisksdrivenbyeconomicgrowth

Savethesource-effectivelypartneringwiththeprivatesector

In2012theUnitedNationsIndustrialDevelopmentOrganization(UNIDO)enteredintoa

partnershipwiththeCarlsbergGroupanditssubsidiaryBaltikaBreweriestoundertakea

projectwhichaimstoaddressthewaterandenergynexusinbreweriesasawaterandenergy

intensiveindustryThepartnershipaimstoreducenaturalresourceconsumptionpollution

andgreenhousegasemissions(GHG)whilealsoimprovingtheagroshyecosystemsandwater

systemsintheRussianFederationUnderthispartnershipaU$30millionprivatesector

investmentandincrementalfundingofU$63millionbytheGlobalEnvironmentFacility(GEF)

aremobilized

Someofthemainactivitiestobeundertakenbythepartnershipsincludedevelopingalifeshy

cycleassessmentmethodologytomeasureenvironmentalfootprintofbreweriesandsuppliers

fromcradletograveanddevelopingregionalTransferofEnvironmentallySoundTechnologies

tobreweriesandagroshyindustrialsuppliersforwaterandenergyfootprintreductiondemonstration

ofapplicationofinnovativewastetoenergyapproachestechnicalassistanceforthedevelopment

ofnationalandinternationalpoliciesandpolicyinstrumentsforthemainstreamingofresource

efficientcleanerproductionprinciples

Resultswillbedisseminatedthroughnationalbreweriesassociationsandwellasinternational

industryplatforms(BeverageIndustriesEnvironmentalRoundtable)forcountrywideandglobal

replicationandupshyscalinghttpgooglQeWMkp

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ice Accordingtotheabovementionedexperiencespartnershipscanbecomeanimportantinstitutional

frameworktopromoteandeffectivelyimplementtheGreeneconomyagendaTheycandeliverthis

promisebygatheringindustrysectorsandfirmssothattheycontributemoreeffectivelytointegrated

andsustainablemanufacturingandtodevelopsectorstrategiesfortherealizationofGreengrowth

intheindustrysector

TheUNIDOGreenIndustryInitiativeforSustainableIndustrialDevelopment

GreenIndustrytransformsmanufacturingandalliedindustrysectorssothattheycontribute

moreeffectivelytosustainableindustrialdevelopmentGreenIndustryistherebythesectorshy

strategyfortherealizationofGreenEconomyandGreenGrowthintheindustrysector

GreenIndustryisoperationalizedbyscalingshyupandmainstreamingprovenmethodsand

practicesforreducingpollutionandresourceconsumptioninallsectors(lsquogreeningofexisting

industriesrsquo)andexpandingthesupplyofaffordableappropriateandreliableenvironmental

goodsandservices(lsquocreatingnewgreenindustriesrsquo)

Thishasproventobegoodforbusinessenvironmentandclimateaswellasforcommunities

forconsumersandfordevelopmentatlargeinthousandsofenterprisesindevelopingand

transitioncountries

AtitsbestGreenIndustryunleashesthebusinessandinnovationpotentialarisingfroma

processofcontinuousimprovementinnaturalresourceuseefficiencyminimizingwasteand

reducingemissions

Sourcehttpwwwgreenindustryplatformorg

AsintheUNIDOGreenIndustryInitiativeratherthanconvertingtheenvironmentintoanadditional

constrainttobusinessdevelopmentpartnershipscanconverttheprotectionoftheenvironment

intoanumberofbusinessopportunitiestosavewaterenergyandmanyothernaturalresources

andtoproducemoreandbetterwithlessInthesamesensecooperationthroughpartnershipscan

deliverimportantbenefitsbyturningthetraditionalreactiveanddefensiveattitudestoenvironmental

concernsinthebusinesssectorintoproactiveandinnovativeactionsoncetheopportunitiesofthe

Greeneconomyarerealisedandtransformedintonewandmoresustainablebusinessopportunities

Part

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PartnershipstoTransferEnvironmentallySoundTechnology(TEST)

TheGEFDanubeshyTESTprojectimplementedbyUNIDOduring2001shy2004infivecountriesof

theDanuberiverbasin(BulgariaCroatiaHungaryRomaniaandSlovakia)resultedinfour

companiesachievingISO14001certificationbytheendoftheprojectandthreemoresince

Morethan230cleanerproductionsolutionshavebeenimplementedinthe17participating

companiescomplementedbyUS$17millionofinvestmentinnewtechnologiesThesechanges

havebroughtestimatedsavingsofUS$13millionperannumforthecompaniesreinforcing

theircompetitivenessTotalreductionofwastewaterreleasesintotheDanuberiverare

estimatedtobe46millioncubicmetersperannumwithmostsectorsreportinga30percent

reductioninwateruseaftertheintroductionofcleanerproductionmethodsandupto90per

centreductionafterinvestmentinnewtechnologies TheintegratedTESTmethodologyhas

becomeoneofthekeytechnicalassistanceproductsofferedbyUNIDOtoeffectivelyand

efficientlyaddressthewaterandenergynexusTESTmethodologyhasbeensuccessfully

appliedintheAfricaAsiaLatinAmericaandintheMediterraneanhttpgoogl6zKQhs

Industrypartnershipscanhelpindesigningsectorstrategiestopromotedecouplingofproduction

growthfromtheincreasinguseofnaturalresourceswaterandenergyincludedasaprerequisite

tomakeeconomicprogresssustainable

TheHydropowerSustainabilityAssessmentForumAglobalpartnership

In2007theWorldWideFundforNature(WWF)TheNatureConservancy(TNC)andtheInternational

HydropowerAssociation(IHA)agreedtoendorsetheIHASustainabilityAssessmentProtocol

(2006)SincethentheForummembersjointlyreviewedandrecommendedenhancementsand

havedevelopedtoolstoassesssocialenvironmentalandeconomicperformanceofhydropower

projectsandoperatingfacilities

AfteraperiodofconsultationandtrialingafinalProtocolwasproducedandwasadoptedbyIHA

inNovember2010Thisisanexampleoftheindustryperceptionofthebusinessopportunities

takingstepstowardsmakingtheproductionofelectricitysustainable

httpwwwhydrosustainabilityorg

TheinclusivebusinessdevelopmentstrategiesembeddedinGreenIndustrypartnershipsaddress

therootcauseofpovertyndashlackofopportunitiesforsustainablelivelihoodsndashratherthansimply

addressingitssymptomsThismeansincreasingtheeconomicreturnstotheproductivefactors

thatthepoorpossess(egraisingreturnstounskilledlabour)aswellasimprovingaccesstoskills

andtechnologiessoastostimulateentrepreneurshipandincreaseproductivityThisincludes

promotingthedevelopmentofruralnonshyagriculturalactivitieslikeproductioninmicrosmalland

mediumshysizedenterprises

63LocalauthoritiesandWaterandEnergyPartnerships

Cities and sub-national partnerships

Citiesandsubshynationaljurisdictionsareprivilegedspacesforcoordinationofthemultipleactors

involvedinthewaterandenergynexus Thewaterandenergychallengesaretheresultofmultiple

individualdecisionsmadebyhouseholdsfirmsandindividualsinthesamecityNotonlyprivate

decisionsareuncoordinatedmodernpolicysystemshavealsodividedresponsibilitiesbetween

zonesdepartmentslegalcategoriesandotherspecializedsilosthatoperatewithincreasing

autonomyanddecreasingcommunicationwitheachother

ZaragozaBuildingaSmartWaterandEnergyCity

ThroughprivatepublicpartnershipstheZaragozacouncilhasbeenabletoinvolvepublic

socialandprivateactorstopromotewaterandenergyefficiencyandawarenessandcapacity

buildingMorethan50bestpracticeshavenowbeenimplementedconvertingZaragozainto

ademonstratedsuccessinwatersavingtheaveragedomesticwaterconsumptionishalf

theSpanishaverageandmorethan30000citizensand300socialentitiessignedpublic

commitmentsonwaterefficiencyThekeyactorspromotedaclusteronwaterefficiency

ZaragozapartnersarenowactivelyinvolvedintherecentlycreatedInternationalnetwork

onhumanrighttowaterinCentralAmericahttpwwwecodesorg

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41

Thisiswhythedialogueandthecommonintereststhatareintheessenceofpartnershipsbrings

tolighttheopportunitiesofrecoveringthelostconnectionsbetweeninstitutionsandindividualsin

ordertoachievesocialandeconomicobjectivesmoreeffectively

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AddressingtheWater-energynexusinruralsettings

DistrictandvillageauthoritiesinMwetenisupportedbyWomenforWaterpromotethe

empowermentandthecapacitydevelopmentofthecommunitytoprovidebasicservicesfor

a10000peoplecommunityintheKilimanjarohttpwwwwomenforwaterorg

Renewableenergyplantsrepresentanimportantopportunityinsmallcommunitiesthatdue

toitssmallorscatteredpopulationcanrsquotbenefitfromthescaleeconomiesofbigwatertreatment

plantsanddensewaterdistributionnetworksTheCityCouncilofVillardelosNavarros(Spain)

promotedtheinstallationofphotovoltaicsolarpanelscapableofcreatingelectricitytopropel

waterintothedistributionnetworkwithsignificantsavingsforthelocalcommunitySimilar

developmentsarebeingimplementedinothersmalltownsinSpain(suchasinAyerbein

Huesca)andsomeirrigationdistricts(VallDrsquoUxoinCastellon)httpgooglyjjnrm

Partnershipsmaybeeffectivemeanstosolveresourceissueswithintheboundariesofthecomplex

localsystemswherebothpublicandprivatedecisionsaremadebutnotnecessarilycoordinated

witheachother

Accordingtothisexperiencepartnershipsatalocallevelallowustoseeithattechnologicalsolutions

areonlyonesideofthecoinandthatthewaterandenergynexusisonlyoneofthemanyimportant

linkagesalongwithpovertyreductionfoodlandplanningsocialinclusionandothersthatcanbe

moreefficientlymanagedatalocallevelSuccessinlocalpartnershipsdependscriticallyontheability

tolinktheresponsetowaterandenergychallengestothesevariedlocaldevelopmentpriorities

Thisexperienceshowsthatlocalpartnershipsareanimportantdriverofbetterwatergovernance

Advancesinthebuildingupofeffectivepartnershipsaresimultaneouswithincreasedsocial

awarenesssocialinclusiontransparencyandothergoodgovernancepracticesthatareincreasingly

recognisedaspreshyconditionstomakesocietytacklethechallengeofmakingasustainablewater

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andenergyfutureThisisofcoursealongtermendeavourwherelongevityisincreasinglymore

importantthanshorttermbusinessandcommitmenttosharedgoalsbecomesmoreimportant

thanwindfallprofits

Public Private Partnerships

Theexperiencesoflocalprivatepublicpartnershipsprovideconvincingargumentsonthebenefits

ofcooperationWhiledevelopingthesocialdialoguerequiredtoempowerauthoritiesandsocial

actorsinthechallengesaheadandtheavailablesolutionsathandtheinvolvementofprivateactors

willbringtothetablethemeanstoconverttheseopportunitiesintoarealityThesealliancesare

baseduponasharedunderstandingofthesustainabilitychallengesandtheopportunitiesand

barriersthatneedtobeovercomeatalocallevelThiscommongroundallowstheappreciationof

themanysynergiesandtheadvantagesofcooperationForexamplethepubliccommitmentto

reducewaterscarcityandtheprioritygiventowaterandenergyefficiencyareselfshyenforcing

objectivesthatpromotesocialobjectiveswhilecontrollinginvestmentrisksandensuringbusiness

opportunitiesinthelongterm

5PAcommunitybasedenergyandwaterdevelopmentinitiativeinCinteMekarIndonesia

5PaProshypoorPublicPrivatePartnershipMobilizingprivatesectorinvolvementthrough

PPPsinprovidingsustainableelectricitysupplytothepoorbyempowermentofthecommunity

andsupportitsownsocialdevelopmentplanincludingsafedrinkingwatersupplyandsmall

hydroelectricplantsandruraldevelopmentactions

httpgooglXLM24t

AccordingtotheexperienceinMekar(above)andVeolia(below)privatepublicpartnershipswhen

builtwiththevisionandthewillrequiredcanbeatwowaymeanstoconnecting businessand

policyintoaneffectivecooperationtomanagethewaterandenergynexusReportedlyononeside

itmightbeapowerfulinstrumenttoconveytothepolicydiscussionarenaalltheinformationutilities

haveonenvironmentalconstraintsaswellasthetechnicalinformationrequiredtobuildasustainable

waterandenergypathOntheothersocialdialogueisaneffectivemechanismtotransmitthesocial

objectivesandmakeprivateactorsawareoftheadvantagesofaligningtheirindividualdecisions

withthemnotjustforaltruismbutfortakingadvantageofthebusinessopportunitiesopenedup

bycooperation

TransformingWaterEfficiencyincitiesandindustriesintoaFirmBusinessStrategy

VeoliaEnvironmentsupplieswaterto150mpeopleworldwideandtreatswasteandwater

orprovidesenergyservicesforover1000businessesinallsectorsThecompanyrsquosexpertise

portfoliooftechnologiesandauditmethodologiesallowsittoidentifyandunlocklocalpotentials

forwaterandenergysavingsatterritoryandorsitescale Tobestachievesuchtargetsit

recommendspartnershipsbetweenmunicipalitieswaterintensiveindustriesandlocal

communitiesfocusingonoperatingwatertreatmentwatersupplyheatingcoolingnetworks

attheoptimalcostandcontinuityofservice

Inadditiontotheefficiencydriverthepartnerisalsofacedwiththethreeintegratedfacets

ofthesustainabledevelopmentsocial(creatingjobsandsupportingcommunity)economic

(reducingoperatingcosts)andenvironmentalwaterqualityandquantitylimitingCO2emission

andsavingenergyandotherkeyresources Thepartnershipsallowsavingupto50ofeither

waterorenergyexpensesandfrom10to30ofemissionsandcostssavings

wwwveoliacom

Partnerships among water and energy utilities

Coordinatedresponsesatasociallevelneedtobematchedbycoordinatedresponsesatafirm

levelthatistosaybydownscalingthesocialchallengeintopracticalactionstakenbythewater

andenergyutilitiesInotherwordsawaterandenergysustainablefuturerequiresbothwatershy

efficientenergyandenergyshyefficientwaterThoughthiscollaborationhasnotbeencommontodate

thisrequiresthebuildingupofeffectivepartnershipswithinwaterandenergyutilities

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SmartBusinessforWaterandEnergyAccessandEfficiency

ThehorizontalintegrationofwaterandenergyprovisionintoasinglefirminCasablanca

(Maroc)hasenabledaneffectivecoordinationofpoliciesandhasservedtofacilitatestakeholdersrsquo

involvementThroughalongtermcontractLYDECaprivatefirmprovidestheservicesof

waterandelectricitydistributionalongwithwastewatercollectionanddisposalandpublic

lightingEffectiveregulationandpublicparticipationhasservedtoputtheeconomiesofscale

andtheadvantagesofanenlargedmarkettotakeadvantageofthesynergiesbetweenwater

andenergyThiswayforinstancethegainsobtainedfrompowerdistributionareusedto

financewaterandsanitationinfrastructuresprovidingaccesstothelessfavoredInthesame

progressivepricingallowstheapplicationofcrosssubsidiesamongstusersservingasa

solidaritymechanismandtoencouragewaterefficiencyatthesametimehttpgooglIJfQZw

Asfarasbothsectorsrealisingtheimportanceofsavingwaterandenergyintheirbusinessstrategy

theseinteractionsaremutuallyreinforcedbytheentireeconomySavingwatermeansalower

demandforenergysothatenergychallengesarealleviated Savingenergyreducesthedemand

forwaterandmakescopingwithwaterscarcityinthefutureeasier

AsexplainedbyJackMoss(2014UNWaterZaragozaConferencehttpgooglAn0o7B)infactlinking

waterandenergyutilitiesisfavouredbytheimportantsimilaritiesbetweenthetwosectorsFrom

abusinessperspectivetheyarenetworkpublicservicesproducingandsellingundifferentiated

productswithimportanteconomiesofscalewhicharecrucialtoallhouseholdsandvirtuallyall

businessesintheeconomyFromacollectiveperspectivetheyarebothconnectedtothethree

dimensionsofsustainabledevelopmentcrucialtoeconomicprogresssocialinclusionandpoverty

reductionandincreasinglyimportantinrelationtotheenvironment

MadridIntegratedWaterandEnergyStrategiesforReducingDroughtExposure

CanaldeIsabelIItheMadridpublicwaterUtilityhasdevelopedanimportanthydropower

capacitythatallowstheproductionofmostoftheelectricityrequiredforthewaterprovision

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andtreatmentinnormalyearsMoreovertheincreasinglyfrequentandseveredroughts

increasetheelectricityrequiredinthewatercycleandreducethehydropowersupplycreating

animportantenergydeficitandincreasingthewaterproductioncostsToadapttoanuncertain

freshwatersupplyTheCanaldeIsabelIIhasdevelopedalternativeenergysourcesranging

frommicroshyturbinestomodernbiogasplantshasuseditsbargainingpowertonegotiate

betterelectricitypricesinthemarketandfinallyhasappliedacomprehensiveenergyefficiency

strategyAllthishasservedtoreducedroughtexposureandtoadapttothelikelyimpactof

climatechangeoverwatersupplieshttpgooglOMvv1A

Howeverexperiencehasalsoshownthatlinkingwaterandenergysectorsrequiresbridgingthe

importantdifferencesbetweenthetwosectorsTheycomefromdistinctivehistoricaltraditionsand

stilltalkdifferentlanguagesandusedifferentconceptsWhileenergyismobileandmarketdecisions

areincreasinglyglobalisedwaterisbulkyexpensivetotransportandreallocaterelevanttolocal

marketsandmostlynonshytradableinglobalonesBothsectorsarealsodifferentwithrespecttohow

theyareregulatedandgoverned

Theopportunitiestotakeadvantageofsynergiesbetweenwaterandenergyareincreasingly

importanttopavethewaytowardsintegrationofwaterandenergyproductionprocessesExperience

hasshownthattheselinkshavebeenindependentlyrecognizedbybothsectorsWaterhasbecome

animportantconcernforenergyutilitiesInpracticaltermsthishasresultedinthedevelopment

ofwaterefficienttechnologiesforcoolinginrecognizingtheimportanceofhydropowerintheenergy

portfolioandintheneedtouseadaptedfuelproductiontothelocalwaterconstraintsasacritical

requirementforexampletodevelopnewrenewablesourcessuchasbiofuelsandnonshyrenewable

onessuchasfrackingfornaturalgas

Inthesamedirectionenergyconcernsplayanincreasingroleinhowwaterutilitiescopewith

increasingwaterscarcityEnergyefficiencyhasledtoreconsideringimportanttradeshyoffssuchas

slowvsintensiveenergywatertreatmenttechnologiesandhasbecomeanimportantissueinthe

developmentofabundantbutwaterintensivesourcessuchaswastebrackishandseawatersources

64PartnershipsforPolicyResearchandInnovation

IntegratedpoliciesandsolutionsarepossiblethankstoinnovationTheoptionofcontinuingwith

traditionalwaystomobilizetheexistingwaterandenergysourcesthathavefuelledeconomicgrowth

inthepastisasexhaustibleasthenonshyrenewablewaterandenergysourcesthathaveplayedthe

mainroleinthepastEspeciallyasfreshwaterbecomesscarceandfossilfuelsaredepleted

innovationceasestobeoptionalandbecomesapreshyconditionforsustainabilitySomekeyexperiences

showhowcopingwiththechallengerequiresreshapingtheresearchpolicyagendaandthisinturn

requiresstrongeralliancesbetweenpublicauthoritiesandprivatebusinesswiththescientific

communityAnenablingpartnershipmustbeabletomainstreampolicychallengesandpriorities

intobasicresearchandalsototransformestablishedandnewscientificknowledgeintopractical

innovationsforthebusinessindustry

Puttingsciencesocietyandgovernmentstogethertoassesstheextentofthethreatto

waterresourcesinChina

GreenpeaceandtheInstituteofGeographicalSciencesandNaturalResourcesunderthe

ChineseAcademyofSciencesworkedtogetheronagroundbreakingstudyoftheestimated

waterconsumptionofcoalpowerstationsItisestimatedthatwaterdemandtothisenergy

strategywillreachatleast9975billionm3in2015ndashequivalenttoonesixthoftheannual

totalwatervolumeoftheYellowRiverduringanormalyearThestudyalsoestimatesthat

in2015thewaterdemandforcoalpowerinInnerMongoliaShaanxiShanxiandNingxia

willeitherseverelychallengeorexceedtherespectiveareasrsquototalindustrialwatersupply

capacity

MoreinformationTheInstituteofGeographicSciencesandNaturalResourcesResearch

(IGSNRR)ChineseAcademyofSciences(CAS)GreenpeaceEastAsia2012ThirstyCoalA

WaterCrisisExacerbatedByChinarsquosMegaCoalPowerBasesChinaEnvironmentalScience

Press(inChinese)httpgoogl44E9Mo

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ice SofarasexplainedbyZafarAdeel(2014UNWaterZaragozaConferencehttpgooglbSrOzs)

theawarenessofthewatershyenergynexusissuesinthepolicydomainhastriggeredanincreasing

responseandattentioninthescientificandresearchcommunityThisisbecausethechallenges

ofunderstandingandimplementingthenexuspoliciesarefurthercomplicatedbygapsintherelated

scientificevidenceInparticularinspiteoftheadvancesthereisminimalevidenceorevenan

establishedmethodologyfordeterminingthetradeshyoffsandsynergisticbenefitsforcombined

watershyenergyplanningatthenationallevelorforconsideringtheobviouslytremendouspotential

toconserveresourcessustainecosystemservicesandtocontributetoimprovementsinhuman

wellshybeing

TheEnergySustainabilityChallenge-ascienceindustrypartnership

ABPshyfundedconsortiumofexpertsfrom15leadinguniversitiesincludingMassachusetts

InstituteofTechnologyUniversityofTexasTsinghuaUniversityandtheUniversityofChina

examinedthecomplexrelationshipsbetweennaturalresourcesandthesupplyanduseof

energyThismultishydisciplinaryresearchprogrammendashtheEnergySustainabilityChallenge

(ESC)ndashisinvestigatingtheeffectsofnaturalresourcescarcitiesonpatternsofenergysupply

andconsumptioninordertoprovideresearchdataonthevolumesofwaterwithdrawnand

consumedalongdifferentenergypathwaysandtheenergyuseinwatersupplyandtreatment

systems

MoreinformationBP(2013)ldquoWaterintheEnergyIndustryrdquo

Researchershavetraditionallyfocusedonnarrowersectorshydrivenmandatesinpartbecausethere

hasbeenlimitedincentivetoinitiateandpursuemoreintegratedresearchacrossdifferentresearch

fieldsConverselysomeexistingresearchdoesrelatetobarriersthatexistbetweenthewaterand

energydomainsAsaddressedbytheBPldquowaterandenergyindustryrdquowhileitisintuitivelyevident

thatanincreasedlevelofcollaborationandcoordinationbetweenthescientificandprofessional

communitiesinimprovinginformationinthewaterandenergydomainswouldproducefavourable

outcomesweneedtoprovidesolidandevidenceshybasedargumentsforachievinginvestmentinthis

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EuropeanjointprogramminginitiativeldquoWaterchallengesforachangingworldrdquo

(TheWaterJPI)

TheEuropeanJointProgrammingInitiative(JPI)isanassemblyofPublicResearchDevelopment

andInnovationFundingOrganizationsfrom19countriesinEurope(MemberStatesofthe

EuropeanUnionplusAssociatedCountries)plustheEuropeanCommissionanonshyvoting

partnerSpecificchallengeshavebeenidentifiedintheeconomicecologicalsocietaland

technologicaldomainsObjectivesinvolveissuessuchasuserparticipationattainingtargets

inthecoordinateduseoffundsandprogressintheintegrationofRDIagendasandactivities

Theresearchquestionsarecastinfiveaxesmaintainingecosystemsustainabilitydeveloping

safewatersystemsforthecitizenspromotingcompetitivenessinthewaterindustry

implementingawatershywisebioshybasedeconomyclosingthewatercyclegap

Moreinformationwwwwaterjpieu

Afirstbasicstepinbuildingacrossedresearchagendaconsistsofidentifyingandquantifyingthe

importanttradeshyoffsbetweenalternativeenergyandwaterdevelopmentpathsandinparticular

underlyingtheimportanceoftacklingbothissuestogethertobuildaneffectiveresponsetoincreased

scarcitiesandrisksandtofavouradaptationtoclimatechangeAsaddressedbytheEUWaterJPI

thecommongroundrequiredforcollectiveactionmustbebaseduponsciencebasedunderstanding

ofthelinksbetweenclimatechangewatersecuritysocialinstabilityeconomicbubblesand

downturnsetc

TheEuropeanInnovationPartnershiponWater(EIPWater)aninitiativewithintheEU2020

InnovationUnion

ByfacilitatingsupportforthecreationofinnovativesolutionstoaddressEuropeanandglobal

waterchallengestheEIPonWateraimstoremovebarriersbyadvancingandleveraging

existingsolutionsItpromotesandinitiatescollaborativeprocessesforchangeandinnovation

inthewatersectoracrossthepublicandprivatesectornonshygovernmentalorganisationsand

thegeneralpublic

MultishystakeholderActionGroupscommittoworkonpriorityareatodeveloptoolstosupport

waterrelatedinnovationThesetoolsareopentoanyactordealingwithwaterandinnovation

ToolsincludetheOnlineMarketPlaceandtheannualEIPWaterconference

Moreinformationwwweipshywatereu

Oncethesetradeshyoffsarewelldefinedthesynergiesbetweenwaterandenergycanbeclearly

identifiedandthepotentialgainsofintegratedwaterandenergyresponsesbecomeevidentScientific

knowledgeisthenessentialtounderstandthebenefitsofintegratedresponsesatdifferentscales

rangingfromtheglobaltothelocaloneandalsofromtheindividualbusinesstothecollectiveinterest

Innovativepartnershipsplayanimportantroleinhelpingsocietytounderstandthevalueandcontribution

ofnewtechnologiesContrastedknowledgeisimportanttoshapesocialperceptionsandhelp

stakeholderstoshapetheirperceptionsandenableadoptionasappropriateofnewefficienttechnologies

andinfrastructuredevelopmentssuchasdesalinationandothersensitivealternativesthatneedto

bediscussedinaconstructivewayinordertoappreciatetheactualpromisesandthethreatsinvolved

TOTOTransformingwaterefficiencyintoadriverofinnovationandabusinessstrategy

Japaneseresearchgroupshowedthatthespreadofwatersavingequipmentcouldcontribute

toa1reductionofCO2emissionsinJapan Asaresultwatersavingequipmentspreadis

includedasapartoftheenvironmentalpolicyofJapanThenCO2reductionpotentialbywater

savingindevelopingcountrieswasevaluatedIndevelopingcountriesifawaterinfrastructure

isconstructedwithconsiderationofacitywaterdemandbiggerCO2reductionpotentialis

expectable Watersavingiseffectivenotonlyinreducingenergyconsumptionforheatingbut

also inreducing thepeak loadofelectricityhttpwwwtotocojpcompanyprofile_en

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7KeyLessonsonPartnerships

Partnershipsbetweenwaterandenergyareessentialtosecurewaterandenergyequitableaccess

efficiencyandsustainabilityOveralltherearesomekeyLessonsemergingfromtheexperiences

presentedinthisreport

1Waterandenergychallenges are consubstantial to economic progressThenatureofthechallenge

varieswithdevelopmentthedevelopingworldisconcernedwithwaterandenergyaccessThe

developedworldisconcernedwithwaterandenergysustainability Bothareconcernedwithwater

andenergyefficiency

2Waterandenergyaccesshavecritically immediate impacts on poverty alleviation Accessisalso

criticalforeconomicdevelopmentasthelackofwaterandenergycanbealimitingconstraintto

sustainableprogresswhichistheultimatehopeforwidespreadpovertyreduction

3Waterandenergysuppliesarestrongly linked to each other Waterisrequiredtoproduceenergy

andenergyisneededfortheextractiontreatmentanddistributionofwateraswellasitscollection

andtreatmentafteruseThedevelopmentofthemostcommonformsofenergy(electricityfrom

coalthermalandhydropower)islimitedbytheavailabilityofwater

4Pursuingpolicyobjectivesindependentlyoftenleadtoldquowater-blindrdquoenergypoliciesandtoldquoenergy

-blindrdquo water policies

5Future challenges will depend on current responsesIfwedonotactnowfuturechallengeswill

bemorecomplex

6Themainriskinthesearchofasustainablewaterandenergyfutureconsistsingoingfurtherwith

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solutionsthatintendtocope with one challenge at the expense of worsening the other

7Opportunities do existtotacklebothenergyandwatersustainabilityandchallengesdoexistwith

theresourcesavailableandwithintherangeofexistingtechnologiesCrossefficiencyinthewater

andenergysectorsisessentialtoproducemoreandbetterwithlessandtopavetheroadtoa

sustainablewaterandenergyeconomy

8Sustainablesolutionsrequireasystematicapproachofintegratedsolutionsratherthanaddressing

issuesinisolationMostoftheseopportunitiestakeadvantageofthesynergiesbetweenwaterand

energyAmongtheexisting solutionsthefollowinghavebeensuccessfullyimplemented

bullSustainableHydropowerameanstobetterintegratewaterandenergyplanningandmanagement

bullRenewableenergytechnologiesbasedonrenewablesourcesinsteadoffinitesourcessuchas

fossilfuels

bullGeothermalenergyforpowergenerationItisabundantandclimateindependentproduces

minimalornearshyzerogreenhousegas(GHG)emissionsandmightbeimplementedwithminimal

waterconsumption

bullSolarphotovoltaicwindandothersustainablesourcesforpowergeneration

bullTechnologicalsolutionsthatoffercombinedenergyandwaterservicesparticularlytothepoorest

segmentsofsociety

bullHeatrecyclingandotheralternativestouseresidualheataspartofthewatertreatmentprocess

sothatthevolumeofwaterrequiredforcoolingisdecreased

bullSelfshyproductionofenergyinordertoreducewatertreatmentcostsandthenincreasefinancial

attractiveness

bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal

powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother

sourcesintovalueanduse

bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty

andensureareliablecontinuouswatersourceforthepowerplant

bull Integratedenergyanddesalination(treatmentrecyclingetc)

bullCogenerationtorecoverheat

bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction

bullReducesludgedisposalcosts

bullUseorganicmaterialasafertilizer

bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand

thusgreenhousegasemissions

9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany

trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring

theconference

bullAlternativewatersourcesforcoolingmightbemoreexpensive

bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion

needofspecialtreatmentshealthrisksetc

bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption

bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy

demandsvaryseasonallydependingonmanylocalcircumstances

bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion

andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream

bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand

thenlessprofitableinfinancialterms

bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset

upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral

outcomesovercrossshysectoralresults

bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce

incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent

providedtheseincentivesarerevised

10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant

multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and

negative repercussions

11Thefollowingrecommendations may help society to take advantage of existing opportunities

andovercomewiththeexistingbarriers

bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation

andmaintenanceandavoidwasteanddistortions

bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand

sellingaservicearesourceortherightstousetheserviceorresource

bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal

powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat

mightcompeteforwatersupplies

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bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe

moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater

forcoolingpurposes

bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain

savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe

powersector

bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater

conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing

structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand

avoidwasteanddistortions

12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability

atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments

socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are

required

bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand

investmentsthatwillensurecontinuousimprovement

bullGovernmentsneedtechnologicalandbusinesspartners

bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated

informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy

andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand

implementintegratedmanagementframeworks

13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective

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partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake

advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute

tothefollowingrelevantobjectives

bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities

bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

bull Implementingwinshywinsolutionsthataremoresustainable

bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste

andinefficiency

bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand

effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized

investmentsandreducedinefficiencies

bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween

thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient

waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas

fromsludgefromwatertreatmentfacilities

bullMainstreamgenderconcernsintowaterandenergygovernance

14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand

assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand

energypartnershipsThesearethemostimportant challenges and barriers partnerships might

need to cope with

bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting

ratherthanonfutureresources

bullThemutualignoranceofeachsectorinthewaterandenergycommunity

bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated

bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately

shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas

waterusersdopayforenergyeventhoughthepricesmaybesubsidized

shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport

majorsectorssuchasagricultureandindustry

bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen

regulatedandmanagedseparately

15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing

directions

bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses

Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic

sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic

authoritieswithoutmuchinvolvementofprivateagents

bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses

bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy

termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic

finance

bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition

forreturnoninvestment

bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure

reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping

utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing

bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable

strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction

resourceefficiency

bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective

researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate

changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives

bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation

bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns

bothtoimprovebusinessoperationsandsocialresponsibility

bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections

betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels

andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto

theexistingsustainabilitychallenges

50

51

7K

eyL

esso

nso

nPa

rtne

rshi

ps

16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein

improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information

deficiencies and gaps to be filled

bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before

theambitionofanintegratedaccountingsystembecomesaviabletarget)

bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy

generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto

waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects

technologychoicesetchellip)

bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe

optionsavailabletoreconcilefuturedemandsandsupplies

bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost

appropriatendashegwaterconsumptionvswithdrawal

17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask

sodonacutettrytomaketoomuchtoosoon

bullTrytocapitalizetheattractivenessofthefirsteasysteps

bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess

(donrsquotbetooambitiousinthefirststeps)

bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners

bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action

bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities

upinthepoliticalagenda

bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation

bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe

benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions

andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder

toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa

bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification

ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap

thecoshybenefitsofintegratedwaterandenergyactions

Part

ners

hips

fori

mpr

ovin

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ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

52

References

bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe

WaterndashFoodndashEnergyNexus

bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples

RepublicofChina

bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe

Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth

ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting

FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase

studies

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount

bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook

bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas

bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer

onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities

bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA

Refe

renc

esPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ComprehensiveAssessmentofWaterManagementinAgriculture

bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision

making

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter

Lives

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange

AdaptationPoliciestoNavigateUnchartedWaters

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein

bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook

to2050Theconsequencesofinaction

bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate

Nexus

bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange

Technologydevelopmentandtechnologytransfer

bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction

bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications

ofbiofueldevelopmentforwatermanagementanduse

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment

Report2Chapter9ldquoWaterandEnergyrdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment

Report3Part2Chapter7ldquoEvolutionofwateruserdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment

Report4Volume1ManagingWaterunderUncertaintyandRisk

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces

2011ndash2050

bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto

SustainableDevelopmentandPovertyEradication

bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication

ofintegratedapproachestowaterresourcesmanagement2012

bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus

bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring

wateruseinagreeneconomy

bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices

forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking

ondamsandtheiralternatives

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport

2011Industrialenergyefficiencyforsustainablewealthcreation

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative

forSustainableIndustrialDevelopment

bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative

bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global

WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012

bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater

AnalyticalBrief

bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater

AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor

improvingwaterandenergyaccessefficiencyandsustainability

bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact

bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater

bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy

bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain

bullWorldEconomicForum2011WaterSecurity

53

54

Websites

bullTheWorldBankhttpwaterworldbankorgnode84122

bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy

4922ampy=shy168ampl=2ampv=homeampd=gmia

bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology

TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina

2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf

bullChangingExpectationsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations

bullClimateChangeCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange

bullDecliningWaterQualityCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality

bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012

httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf

bullHowtoFeedtheWorldin2050FAO2009

httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf

Web

site

s

bullIncreasingWaterDemandCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand

bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships

UNGlobalCompactOffice2007

httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf

httpwwwfaoorgNEWSROOMENnews20071000494indexhtml

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance

UNEPInternationalResourcePanel2012

bullPhysicalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks

bullReputationalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks

bullRegulatoryRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks

bullRisksbyIndustrySectorCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector

bullRisksinTheValueChainCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain

bullSharedRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasesharedshyrisk

bullAlternativewatersourcesforenergyproductionLowqualitywaterforcoolingnuclearandthermal

powergenerationplantsmaysavefreshwaterbyopeningawindowofopportunitytoputother

sourcesintovalueanduse

bullSecuringwastewaterfromanearbywastewatertreatmentplantcouldreducefutureuncertainty

andensureareliablecontinuouswatersourceforthepowerplant

bull Integratedenergyanddesalination(treatmentrecyclingetc)

bullCogenerationtorecoverheat

bullReductionofhealthrisksfromputtingwastewaterintoenergyproduction

bullReducesludgedisposalcosts

bullUseorganicmaterialasafertilizer

bullProductionofBiogasfortransportheatandcookingortoelectricityandreplacefossilfuelsand

thusgreenhousegasemissions

9Howevermakingsustainablewatershyenergydecisionsrequirescarefulconsiderationofthemany

trade-offsinvolvedinthewaterandenergynexusThesearesomeofthetradeshyoffsidentifiedduring

theconference

bullAlternativewatersourcesforcoolingmightbemoreexpensive

bullAlternativesourcesmaycomewithadditionalmanagementcomplicationssuchascorrosion

needofspecialtreatmentshealthrisksetc

bullThereduction inwateruseforcoolingmightresult inan increase inwaterconsumption

bull IntegratedsystemstoproduceenergyandwateraremorecomplextooperateWaterandenergy

demandsvaryseasonallydependingonmanylocalcircumstances

bullMoreefficientirrigationsystemsmightresultinlowerwaterusebutmightincreasewaterdepletion

andreducethereturnsandthentheinfiltrationandtherunshyoffdownstream

bullMoresophisticatedsystemssuchasdrycoolingordripirrigationmightbemoreexpensiveand

thenlessprofitableinfinancialterms

bullTheperceptionofwhatsolutionsaremoreadvantageousdependsontheexistinginstitutionalset

upinplaceThecurrentpoliticalandeconomicincentivesystemstillfavoursindependentsectoral

outcomesovercrossshysectoralresults

bull Inadequatewaterandenergypricingandenvironmentallyharmfulsubsidiesmightreduce

incentivestoincreasewaterandenergyefficiencyWaterefficiencygainswouldonlybepermanent

providedtheseincentivesarerevised

10Decisionsmadeforwateruseandmanagementandforenergyproductioncanhavesignificant

multifacetedandbroadshyreachingimpactsoneachotherndashoftenwithamix of both positive and

negative repercussions

11Thefollowingrecommendations may help society to take advantage of existing opportunities

andovercomewiththeexistingbarriers

bullEstablishingappropriatepricingstructurescanprovidesufficientrevenuesforcontinuedoperation

andmaintenanceandavoidwasteanddistortions

bullEconomicinstrumentsincludetaxespollutionchargessubsidiesandmarketsforbuyingand

sellingaservicearesourceortherightstousetheserviceorresource

bull Integratewaterconcernsinenergyplanninginparticularwhenlocationofwaterintensivethermal

powerplantsincludingassessmentsonwaterresourceswaterfacilitiesandothersectorsthat

mightcompeteforwatersupplies

48

49

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eyL

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bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe

moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater

forcoolingpurposes

bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain

savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe

powersector

bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater

conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing

structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand

avoidwasteanddistortions

12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability

atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments

socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are

required

bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand

investmentsthatwillensurecontinuousimprovement

bullGovernmentsneedtechnologicalandbusinesspartners

bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated

informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy

andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand

implementintegratedmanagementframeworks

13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake

advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute

tothefollowingrelevantobjectives

bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities

bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

bull Implementingwinshywinsolutionsthataremoresustainable

bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste

andinefficiency

bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand

effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized

investmentsandreducedinefficiencies

bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween

thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient

waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas

fromsludgefromwatertreatmentfacilities

bullMainstreamgenderconcernsintowaterandenergygovernance

14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand

assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand

energypartnershipsThesearethemostimportant challenges and barriers partnerships might

need to cope with

bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting

ratherthanonfutureresources

bullThemutualignoranceofeachsectorinthewaterandenergycommunity

bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated

bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately

shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas

waterusersdopayforenergyeventhoughthepricesmaybesubsidized

shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport

majorsectorssuchasagricultureandindustry

bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen

regulatedandmanagedseparately

15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing

directions

bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses

Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic

sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic

authoritieswithoutmuchinvolvementofprivateagents

bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses

bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy

termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic

finance

bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition

forreturnoninvestment

bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure

reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping

utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing

bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable

strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction

resourceefficiency

bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective

researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate

changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives

bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation

bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns

bothtoimprovebusinessoperationsandsocialresponsibility

bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections

betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels

andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto

theexistingsustainabilitychallenges

50

51

7K

eyL

esso

nso

nPa

rtne

rshi

ps

16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein

improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information

deficiencies and gaps to be filled

bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before

theambitionofanintegratedaccountingsystembecomesaviabletarget)

bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy

generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto

waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects

technologychoicesetchellip)

bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe

optionsavailabletoreconcilefuturedemandsandsupplies

bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost

appropriatendashegwaterconsumptionvswithdrawal

17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask

sodonacutettrytomaketoomuchtoosoon

bullTrytocapitalizetheattractivenessofthefirsteasysteps

bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess

(donrsquotbetooambitiousinthefirststeps)

bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners

bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action

bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities

upinthepoliticalagenda

bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation

bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe

benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions

andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder

toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa

bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification

ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap

thecoshybenefitsofintegratedwaterandenergyactions

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

52

References

bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe

WaterndashFoodndashEnergyNexus

bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples

RepublicofChina

bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe

Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth

ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting

FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase

studies

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount

bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook

bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas

bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer

onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities

bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA

Refe

renc

esPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ComprehensiveAssessmentofWaterManagementinAgriculture

bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision

making

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter

Lives

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange

AdaptationPoliciestoNavigateUnchartedWaters

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein

bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook

to2050Theconsequencesofinaction

bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate

Nexus

bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange

Technologydevelopmentandtechnologytransfer

bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction

bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications

ofbiofueldevelopmentforwatermanagementanduse

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment

Report2Chapter9ldquoWaterandEnergyrdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment

Report3Part2Chapter7ldquoEvolutionofwateruserdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment

Report4Volume1ManagingWaterunderUncertaintyandRisk

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces

2011ndash2050

bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto

SustainableDevelopmentandPovertyEradication

bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication

ofintegratedapproachestowaterresourcesmanagement2012

bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus

bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring

wateruseinagreeneconomy

bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices

forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking

ondamsandtheiralternatives

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport

2011Industrialenergyefficiencyforsustainablewealthcreation

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative

forSustainableIndustrialDevelopment

bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative

bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global

WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012

bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater

AnalyticalBrief

bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater

AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor

improvingwaterandenergyaccessefficiencyandsustainability

bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact

bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater

bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy

bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain

bullWorldEconomicForum2011WaterSecurity

53

54

Websites

bullTheWorldBankhttpwaterworldbankorgnode84122

bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy

4922ampy=shy168ampl=2ampv=homeampd=gmia

bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology

TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina

2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf

bullChangingExpectationsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations

bullClimateChangeCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange

bullDecliningWaterQualityCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality

bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012

httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf

bullHowtoFeedtheWorldin2050FAO2009

httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf

Web

site

s

bullIncreasingWaterDemandCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand

bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships

UNGlobalCompactOffice2007

httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf

httpwwwfaoorgNEWSROOMENnews20071000494indexhtml

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance

UNEPInternationalResourcePanel2012

bullPhysicalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks

bullReputationalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks

bullRegulatoryRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks

bullRisksbyIndustrySectorCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector

bullRisksinTheValueChainCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain

bullSharedRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasesharedshyrisk

49

7K

eyL

esso

nso

nPa

rtne

rshi

ps

bullEnhancingtheefficiencyinenergytransformationprocessesasameanstosavingwaterThe

moreeffectivetheenergygenerationprocessthelesstheresidualheatandtheneedofwater

forcoolingpurposes

bull ImprovewaterandenergyefficiencyandconservationImprovingefficiencyinthewaterdomain

savesenergyfortreatmentandsupplyandthereforereducestheamountofwaterneededbythe

powersector

bullFocusonlongshytermobjectivespoliciesandintegratedplansthatencourageenergyandwater

conservationcanreducefutureenergyandwaterrequirementsEstablishingappropriatepricing

structuresthatcanprovidesufficientrevenuesforcontinuedoperationandmaintenanceand

avoidwasteanddistortions

12 Partnershipsarerequiredtoimprovewaterandenergyaccessefficiencyandsustainability

atdifferentlevelsandbetweenprivateandpublicstakeholdersbusinessesusersandgovernments

socialandprivateactorscienceandpolicyetcThesearethemainreasonswhy partnerships are

required

bullTheenergyshywaterchallengesaretoogreatforanyagencyororganizationtotackleontheirown

bullThereistheneedtoworkwithanarrayofpartnerstodesignpoliciesandforplanningand

investmentsthatwillensurecontinuousimprovement

bullGovernmentsneedtechnologicalandbusinesspartners

bullBusinessesneedGovernmentstoensureastableregulatoryframeworkandfacilitateintegrated

informationandlongtermplanningFosteringinterdisciplinarycollaborationbetweenenergy

andwatersectorsisessentialtoprovidingtheknowledgeexchangenecessarytodevelopand

implementintegratedmanagementframeworks

13 PartnershipsneedtobeseenasasocialmeanstomanyendsIngeneraltermseffective

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

partnershipsimprovethesocialabilitytorespondtothewaterandenergychallengesandtake

advantageofthesynergiesbetweenwaterandenergyInparticularpartnerships might contribute

tothefollowingrelevantobjectives

bull Integratingpoliciesbroadeningthescopeandenhancingtheeffectivenessofbothwaterand

energyplanning

bull Improvingwaterandenergygovernancebyhelpingtoprovidebetterregulationsandenabling

institutionalframeworks

bullLearningfromeachotherrsquossuccessandfailureamongthewaterandenergycommunities

bull Identifyingopportunitiestoimprovewaterandenergyaccessefficiencyandsustainability

bull Implementingwinshywinsolutionsthataremoresustainable

bullPromotingandstimulatingcoordinationbetweenthewaterandenergydomainstoreducewaste

andinefficiency

bullDevelopingacommonandbetterunderstandingbetweenthetwosectorsoftheconnectionsand

effectsoneachotherwillimprovecoordinationinenergyandwaterplanningleadingtooptimized

investmentsandreducedinefficiencies

bullEncouraginggovernmenttocreateenablingenvironmentstofostergreatercoordinationbetween

thewaterandenergydomainsandsupportRampDinwatershyefficientenergyandenergyshyefficient

waterserviceprovisionforexampleheatenergyrecoveryfromwarmwaterinbuildingsorbiogas

fromsludgefromwatertreatmentfacilities

bullMainstreamgenderconcernsintowaterandenergygovernance

14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand

assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand

energypartnershipsThesearethemostimportant challenges and barriers partnerships might

need to cope with

bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting

ratherthanonfutureresources

bullThemutualignoranceofeachsectorinthewaterandenergycommunity

bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated

bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately

shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas

waterusersdopayforenergyeventhoughthepricesmaybesubsidized

shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport

majorsectorssuchasagricultureandindustry

bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen

regulatedandmanagedseparately

15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing

directions

bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses

Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic

sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic

authoritieswithoutmuchinvolvementofprivateagents

bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses

bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy

termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic

finance

bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition

forreturnoninvestment

bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure

reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping

utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing

bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable

strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction

resourceefficiency

bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective

researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate

changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives

bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation

bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns

bothtoimprovebusinessoperationsandsocialresponsibility

bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections

betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels

andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto

theexistingsustainabilitychallenges

50

51

7K

eyL

esso

nso

nPa

rtne

rshi

ps

16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein

improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information

deficiencies and gaps to be filled

bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before

theambitionofanintegratedaccountingsystembecomesaviabletarget)

bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy

generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto

waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects

technologychoicesetchellip)

bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe

optionsavailabletoreconcilefuturedemandsandsupplies

bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost

appropriatendashegwaterconsumptionvswithdrawal

17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask

sodonacutettrytomaketoomuchtoosoon

bullTrytocapitalizetheattractivenessofthefirsteasysteps

bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess

(donrsquotbetooambitiousinthefirststeps)

bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners

bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action

bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities

upinthepoliticalagenda

bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation

bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe

benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions

andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder

toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa

bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification

ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap

thecoshybenefitsofintegratedwaterandenergyactions

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

52

References

bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe

WaterndashFoodndashEnergyNexus

bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples

RepublicofChina

bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe

Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth

ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting

FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase

studies

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount

bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook

bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas

bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer

onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities

bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA

Refe

renc

esPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ComprehensiveAssessmentofWaterManagementinAgriculture

bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision

making

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter

Lives

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange

AdaptationPoliciestoNavigateUnchartedWaters

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein

bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook

to2050Theconsequencesofinaction

bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate

Nexus

bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange

Technologydevelopmentandtechnologytransfer

bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction

bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications

ofbiofueldevelopmentforwatermanagementanduse

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment

Report2Chapter9ldquoWaterandEnergyrdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment

Report3Part2Chapter7ldquoEvolutionofwateruserdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment

Report4Volume1ManagingWaterunderUncertaintyandRisk

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces

2011ndash2050

bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto

SustainableDevelopmentandPovertyEradication

bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication

ofintegratedapproachestowaterresourcesmanagement2012

bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus

bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring

wateruseinagreeneconomy

bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices

forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking

ondamsandtheiralternatives

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport

2011Industrialenergyefficiencyforsustainablewealthcreation

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative

forSustainableIndustrialDevelopment

bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative

bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global

WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012

bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater

AnalyticalBrief

bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater

AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor

improvingwaterandenergyaccessefficiencyandsustainability

bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact

bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater

bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy

bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain

bullWorldEconomicForum2011WaterSecurity

53

54

Websites

bullTheWorldBankhttpwaterworldbankorgnode84122

bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy

4922ampy=shy168ampl=2ampv=homeampd=gmia

bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology

TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina

2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf

bullChangingExpectationsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations

bullClimateChangeCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange

bullDecliningWaterQualityCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality

bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012

httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf

bullHowtoFeedtheWorldin2050FAO2009

httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf

Web

site

s

bullIncreasingWaterDemandCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand

bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships

UNGlobalCompactOffice2007

httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf

httpwwwfaoorgNEWSROOMENnews20071000494indexhtml

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance

UNEPInternationalResourcePanel2012

bullPhysicalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks

bullReputationalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks

bullRegulatoryRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks

bullRisksbyIndustrySectorCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector

bullRisksinTheValueChainCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain

bullSharedRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasesharedshyrisk

14Successinreachingthemultipleobjectivespartnershipsdependonthecorrectidentificationand

assessmentofthechallengesandbarriersthatneedtobeovercomeforbuildingeffectivewaterand

energypartnershipsThesearethemostimportant challenges and barriers partnerships might

need to cope with

bullTraditionalwaterandenergyinvestmentandplanningwhicharemostlybaseduponexisting

ratherthanonfutureresources

bullThemutualignoranceofeachsectorinthewaterandenergycommunity

bullTherelianceonengineeredsolutionswhilenaturalgreeninfrastructuresareunderappreciated

bullTheexisting incentives thatarestilldesigned todealwithwaterandenergyseparately

shy Energyproducershavelittleornoincentivetoconservewaterduetoverylowpriceswhereas

waterusersdopayforenergyeventhoughthepricesmaybesubsidized

shy Waterandenergypricesarestronglyaffectedbypoliticaldecisionsandsubsidiesthatsupport

majorsectorssuchasagricultureandindustry

bullAlthoughthelinkbetweenwaterandenergyisevidentthesedomainshavehistoricallybeen

regulatedandmanagedseparately

15Theseambitioustaskscanbeattainedbypartnershipiftheyallowtoprogressinthefollowing

directions

bullChangethetraditionalinstitutionsthatdonotencourageinnovationandintegratedresponses

Traditionallythebulkofbothwaterandenergyinfrastructurehasbeenprovidedbythepublic

sectorandthatmighthavefavouredtheperceptionthattheseproblemsmustbetackledbypublic

authoritieswithoutmuchinvolvementofprivateagents

bullOvercomeinstitutionalsilosthatstillneglectintegratedresponses

bullCreateinvestmentopportunitiesandbuildlongshytermsecurityforinvestmentreturnsinthelongshy

termThesizeoffutureinvestmentrequiredforbothdomainscannotbesuppliedsolelybypublic

finance

bullConvinceprivateinvestorsandventurecapitaliststhatthewatershyenergysectorisaviableproposition

forreturnoninvestment

bullDevelopnewinvestmentinstrumentstoenlistprivatefinancemaycomprisepublicexpenditure

reviewstoimprovepublicspendinganditsmonitoringreducinginvestmentinefficiencieshelping

utilitiestomovetowardscostrecoverypublicndashprivatepartnershipsandresultsshybasedfinancing

bullDevelopmutualunderstandingandcommongroundfortheidentificationoflongshytermviable

strategiesatalocallevelandalignbusinessinterestswithcollectivegoalsofpovertyreduction

resourceefficiency

bullMainstreamenvironmentalobjectivesandprioritiesintotheresearchagendaanddevelopeffective

researchoninnovationinstrumentstotriggeradvancesinwaterandenergyefficiencyclimate

changeadaptationanddisasterriskreductionsamongothersociallyrelevantobjectives

bullSupportforinnovativetechnologytomoveitfromlaboratorytopilottestingtoimplementation

bullTransformcurrentknowledgeintoadriverforinnovationbyconnectingsciencetofirmsconcerns

bothtoimprovebusinessoperationsandsocialresponsibility

bullStrengthenthesciencepolicylinktoprovideabetterunderstandingoftheinterconnections

betweenwaterandenergyaswellastoimprovetheinformationbasistheassessmentmodels

andthedecisionssupportsystemsallinordertoenhancethecollectivecapacitytorespondto

theexistingsustainabilitychallenges

50

51

7K

eyL

esso

nso

nPa

rtne

rshi

ps

16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein

improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information

deficiencies and gaps to be filled

bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before

theambitionofanintegratedaccountingsystembecomesaviabletarget)

bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy

generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto

waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects

technologychoicesetchellip)

bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe

optionsavailabletoreconcilefuturedemandsandsupplies

bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost

appropriatendashegwaterconsumptionvswithdrawal

17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask

sodonacutettrytomaketoomuchtoosoon

bullTrytocapitalizetheattractivenessofthefirsteasysteps

bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess

(donrsquotbetooambitiousinthefirststeps)

bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners

bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action

bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities

upinthepoliticalagenda

bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation

bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe

benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions

andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder

toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa

bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification

ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap

thecoshybenefitsofintegratedwaterandenergyactions

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

52

References

bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe

WaterndashFoodndashEnergyNexus

bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples

RepublicofChina

bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe

Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth

ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting

FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase

studies

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount

bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook

bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas

bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer

onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities

bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA

Refe

renc

esPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ComprehensiveAssessmentofWaterManagementinAgriculture

bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision

making

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter

Lives

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange

AdaptationPoliciestoNavigateUnchartedWaters

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein

bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook

to2050Theconsequencesofinaction

bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate

Nexus

bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange

Technologydevelopmentandtechnologytransfer

bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction

bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications

ofbiofueldevelopmentforwatermanagementanduse

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment

Report2Chapter9ldquoWaterandEnergyrdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment

Report3Part2Chapter7ldquoEvolutionofwateruserdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment

Report4Volume1ManagingWaterunderUncertaintyandRisk

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces

2011ndash2050

bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto

SustainableDevelopmentandPovertyEradication

bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication

ofintegratedapproachestowaterresourcesmanagement2012

bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus

bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring

wateruseinagreeneconomy

bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices

forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking

ondamsandtheiralternatives

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport

2011Industrialenergyefficiencyforsustainablewealthcreation

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative

forSustainableIndustrialDevelopment

bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative

bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global

WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012

bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater

AnalyticalBrief

bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater

AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor

improvingwaterandenergyaccessefficiencyandsustainability

bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact

bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater

bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy

bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain

bullWorldEconomicForum2011WaterSecurity

53

54

Websites

bullTheWorldBankhttpwaterworldbankorgnode84122

bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy

4922ampy=shy168ampl=2ampv=homeampd=gmia

bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology

TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina

2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf

bullChangingExpectationsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations

bullClimateChangeCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange

bullDecliningWaterQualityCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality

bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012

httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf

bullHowtoFeedtheWorldin2050FAO2009

httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf

Web

site

s

bullIncreasingWaterDemandCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand

bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships

UNGlobalCompactOffice2007

httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf

httpwwwfaoorgNEWSROOMENnews20071000494indexhtml

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance

UNEPInternationalResourcePanel2012

bullPhysicalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks

bullReputationalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks

bullRegulatoryRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks

bullRisksbyIndustrySectorCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector

bullRisksinTheValueChainCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain

bullSharedRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasesharedshyrisk

51

7K

eyL

esso

nso

nPa

rtne

rshi

ps

16Informationandnewintegrateddecisionsupportsystemsaresaidtoplayanimportantrolein

improvingpoliciesandcollectivedecisionmakingcapacitiesThesearesomeofthe information

deficiencies and gaps to be filled

bullThereisstillroomforimprovementinwateraccountingandenergyaccountingsystems(before

theambitionofanintegratedaccountingsystembecomesaviabletarget)

bullThebestintegratedmodelsavailablestillhavetoovercomeimportantdrawbacks(inenergy

generalequilibriummodelswaterisanemissionratherthanacarriermodelsaresensitiveto

waterpricesbutnottowatershortageslimitedabilitytodealwithuncertaintydynamiceffects

technologychoicesetchellip)

bullProspectivescenariosarestillbasedonBAUandadshyhocassumptionsonthedriversandthe

optionsavailabletoreconcilefuturedemandsandsupplies

bullTheavailabilityofdataclearconceptsandinformationiskeytodeterminewhichsolutionismost

appropriatendashegwaterconsumptionvswithdrawal

17Building effective partnerships is a marathonratherthanasprintDialogueisalongtermtask

sodonacutettrytomaketoomuchtoosoon

bullTrytocapitalizetheattractivenessofthefirsteasysteps

bullBeawareofthefactthatsuccessfuldialogueisagraduallearningandselfshyreinforcingprocess

(donrsquotbetooambitiousinthefirststeps)

bullBearinmindthatpartnershipsprogressthroughbuildingasharedvisionamongdifferentpartners

bullBut keep in mind the need to accept and recognize selfshyinterest as a driver of action

bullNotethatincentivesforinnovationdependontheabilityoftheprivatesectortopushtheirpriorities

upinthepoliticalagenda

bullDonacutetforgetthatstableregulatoryframeworksdriveinnovation

bullPartnershipsstartwithmutualknowledgeandprogressthroughmutualcompromisesThe

benefitscanbereapedfromthebeginningbyallowingbetterwaterinformedenergydecisions

andbetterenergyinformedwaterdecisionsandcanbeincreasedbylinkingdecisionsinorder

toreducethewatercostsanduncertaintiesofenergydecisionsandviceversa

bullSuccessfulpartnershipsareselfshysustainedOnceestablishedtheymightenabletheidentification

ofmutuallybeneficialalternativesprovidingtheincentivesforfurtheragreementsabletoreap

thecoshybenefitsofintegratedwaterandenergyactions

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

52

References

bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe

WaterndashFoodndashEnergyNexus

bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples

RepublicofChina

bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe

Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth

ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting

FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase

studies

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount

bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook

bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas

bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer

onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities

bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA

Refe

renc

esPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ComprehensiveAssessmentofWaterManagementinAgriculture

bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision

making

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter

Lives

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange

AdaptationPoliciestoNavigateUnchartedWaters

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein

bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook

to2050Theconsequencesofinaction

bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate

Nexus

bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange

Technologydevelopmentandtechnologytransfer

bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction

bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications

ofbiofueldevelopmentforwatermanagementanduse

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment

Report2Chapter9ldquoWaterandEnergyrdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment

Report3Part2Chapter7ldquoEvolutionofwateruserdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment

Report4Volume1ManagingWaterunderUncertaintyandRisk

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces

2011ndash2050

bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto

SustainableDevelopmentandPovertyEradication

bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication

ofintegratedapproachestowaterresourcesmanagement2012

bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus

bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring

wateruseinagreeneconomy

bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices

forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking

ondamsandtheiralternatives

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport

2011Industrialenergyefficiencyforsustainablewealthcreation

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative

forSustainableIndustrialDevelopment

bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative

bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global

WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012

bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater

AnalyticalBrief

bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater

AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor

improvingwaterandenergyaccessefficiencyandsustainability

bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact

bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater

bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy

bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain

bullWorldEconomicForum2011WaterSecurity

53

54

Websites

bullTheWorldBankhttpwaterworldbankorgnode84122

bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy

4922ampy=shy168ampl=2ampv=homeampd=gmia

bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology

TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina

2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf

bullChangingExpectationsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations

bullClimateChangeCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange

bullDecliningWaterQualityCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality

bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012

httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf

bullHowtoFeedtheWorldin2050FAO2009

httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf

Web

site

s

bullIncreasingWaterDemandCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand

bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships

UNGlobalCompactOffice2007

httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf

httpwwwfaoorgNEWSROOMENnews20071000494indexhtml

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance

UNEPInternationalResourcePanel2012

bullPhysicalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks

bullReputationalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks

bullRegulatoryRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks

bullRisksbyIndustrySectorCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector

bullRisksinTheValueChainCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain

bullSharedRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasesharedshyrisk

52

References

bullAsianDevelopmentBank(ADB)2013ThinkingaboutWaterDifferentlyManagingthe

WaterndashFoodndashEnergyNexus

bullAsianDevelopmentBank(ADB)2012PromotingBeneficialSewageSludgeUtilizationinthePeoples

RepublicofChina

bullAsianDevelopmentBank(ADB)UnitedNationsEconomicandSocialCommissionforAsiaandthe

Pacific(UNESCAP)andUnitedNationsEnvironmentProgramme(UNEP)2012GreenGrowth

ResourcesandResilienceEnvironmentalSustainabilityinAsiaandthePacific

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2013AnInnovativeAccounting

FrameworkfortheFoodshyEnergyshyWaterNexusApplicationoftheMuSIASEMapproachtothreecase

studies

bullFoodandAgricultureOrganizationoftheUnitedNations(FAO)2007MakingEveryDropCount

bullInternationalEnergyAgency(IEA)2012WorldEnergyOutlook

bullInternationalEnergyAgency(IEA)2012GoldenRulesforaGoldenAgeofGas

bullInternationalBankforReconstructionandDevelopment(IBRD)WorldBankFebruary2012Primer

onEnergyEfficiencyforMunicipalWaterandWastewaterUtilities

bullInternationalWaterManagementInstitute(IWMI)2007WaterforFoodWaterforLifeA

Refe

renc

esPa

rtne

rshi

psfo

rim

prov

ing

wat

era

nde

nerg

yac

cess

effi

cien

cya

nds

usta

inab

ility

ComprehensiveAssessmentofWaterManagementinAgriculture

bullMcKinseyandCompany2009ChartingourwaterfutureEconomicframeworkstoinformdecision

making

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterSecurityforBetter

Lives

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2013WaterandClimateChange

AdaptationPoliciestoNavigateUnchartedWaters

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2011WaterGovernancein

bullOrganisationforEconomicCoshyoperationandDevelopmentOECDCountriesAMultilevelApproach

bullOrganisationforEconomicCoshyoperationandDevelopment(OECD)2012EnvironmentalOutlook

to2050Theconsequencesofinaction

bullTheWorldEconomicForum(WaterInitiative)2011WaterSecurityTheWatershyFoodshyEnergyshyClimate

Nexus

bullUnitedNationsDepartmentofSocialandEconomicAffairs(UNDESA)2013Climatechange

Technologydevelopmentandtechnologytransfer

bullUnitedNationsDevelopmentProgramme(UNDP)2004WaterGovernanceforPovertyReduction

bullUnitedNationsEconomicCommissionforLatinAmericaandtheCaribbean(ECLAC)2011Implications

ofbiofueldevelopmentforwatermanagementanduse

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment

Report2Chapter9ldquoWaterandEnergyrdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment

Report3Part2Chapter7ldquoEvolutionofwateruserdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment

Report4Volume1ManagingWaterunderUncertaintyandRisk

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces

2011ndash2050

bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto

SustainableDevelopmentandPovertyEradication

bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication

ofintegratedapproachestowaterresourcesmanagement2012

bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus

bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring

wateruseinagreeneconomy

bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices

forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking

ondamsandtheiralternatives

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport

2011Industrialenergyefficiencyforsustainablewealthcreation

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative

forSustainableIndustrialDevelopment

bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative

bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global

WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012

bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater

AnalyticalBrief

bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater

AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor

improvingwaterandenergyaccessefficiencyandsustainability

bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact

bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater

bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy

bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain

bullWorldEconomicForum2011WaterSecurity

53

54

Websites

bullTheWorldBankhttpwaterworldbankorgnode84122

bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy

4922ampy=shy168ampl=2ampv=homeampd=gmia

bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology

TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina

2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf

bullChangingExpectationsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations

bullClimateChangeCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange

bullDecliningWaterQualityCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality

bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012

httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf

bullHowtoFeedtheWorldin2050FAO2009

httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf

Web

site

s

bullIncreasingWaterDemandCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand

bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships

UNGlobalCompactOffice2007

httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf

httpwwwfaoorgNEWSROOMENnews20071000494indexhtml

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance

UNEPInternationalResourcePanel2012

bullPhysicalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks

bullReputationalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks

bullRegulatoryRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks

bullRisksbyIndustrySectorCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector

bullRisksinTheValueChainCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain

bullSharedRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasesharedshyrisk

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2006UnitedNationsWorldWaterDevelopment

Report2Chapter9ldquoWaterandEnergyrdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2009UnitedNationsWorldWaterDevelopment

Report3Part2Chapter7ldquoEvolutionofwateruserdquo

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)UNshyWater2012UnitedNationsWorldWaterDevelopment

Report4Volume1ManagingWaterunderUncertaintyandRisk

bullUnitedNationsEducationalScientificandCulturalOrganization(UNESCO)UnitedNationsWorld

WaterAssessmentProgramme(WWAP)2012TheDynamicsofGlobalWaterFuturesDrivingForces

2011ndash2050

bullUnitedNationsEnvironmentProgramme(UNEP)2011TowardsaGreenEconomyPathwaysto

SustainableDevelopmentandPovertyEradication

bullUnitedNationsEnvironmentProgramme(UNEP)UNshyWater2012StatusReportontheapplication

ofintegratedapproachestowaterresourcesmanagement2012

bullUnitedNationsEnvironmentProgramme(UNEP)2011TheBioenergyandWaterNexus

bullUnitedNationsEnvironmentProgramme(UNEP)InternationalResourcePanel(IRP)2012Measuring

wateruseinagreeneconomy

bullUnitedNationsEnvironmentProgramme(UNEP)2007DamsandDevelopmentRelevantpractices

forimproveddecisionshymakingAcompendiumofrelevantpracticesforimproveddecisionshymaking

ondamsandtheiralternatives

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2012IndustrialDevelopmentReport

2011Industrialenergyefficiencyforsustainablewealthcreation

bullUnitedNationsIndustrialDevelopmentOrganization(UNIDO)2011UnidoGreenIndustryInitiative

forSustainableIndustrialDevelopment

bullUnitedNationsSecretaryshyGeneral2012SustainableEnergyforAll(SE4ALL)initiative

bullUnitedNationsUniversityInstituteforWaterEnvironmentandHealth(UNUshyINWEH)2012Global

WaterCrisisAddressinganUrgentSecurityIssuePapersfortheInterActionCouncil2011shy2012

bullUNshyWaterUnitedNationsUniversity(UNU)WaterSecurityamptheGlobalWaterAgendaAUNshyWater

AnalyticalBrief

bullUNshyWaterDecadeProgrammeonAdvocacyandCommunication(UNWshyDPAC)2014UNshyWater

AnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014Partnershipsfor

improvingwaterandenergyaccessefficiencyandsustainability

bullWaterResourcesManagement2010Corporatewaterfootprintaccountingandimpact

bullWorldBank2012TheFutureofWaterinAfricanCitiesWhyWasteWater

bullWorldBankWaterPartnershipProgram(WPP)2013ThirstyEnergy

bullWorldBankWaterPartnershipProgram(WPP)2012StrengthenSecureSustain

bullWorldEconomicForum2011WaterSecurity

53

54

Websites

bullTheWorldBankhttpwaterworldbankorgnode84122

bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy

4922ampy=shy168ampl=2ampv=homeampd=gmia

bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology

TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina

2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf

bullChangingExpectationsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations

bullClimateChangeCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange

bullDecliningWaterQualityCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality

bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012

httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf

bullHowtoFeedtheWorldin2050FAO2009

httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf

Web

site

s

bullIncreasingWaterDemandCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand

bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships

UNGlobalCompactOffice2007

httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf

httpwwwfaoorgNEWSROOMENnews20071000494indexhtml

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance

UNEPInternationalResourcePanel2012

bullPhysicalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks

bullReputationalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks

bullRegulatoryRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks

bullRisksbyIndustrySectorCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector

bullRisksinTheValueChainCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain

bullSharedRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasesharedshyrisk

54

Websites

bullTheWorldBankhttpwaterworldbankorgnode84122

bullAgriculturalexposuretowaterstresshttpwwwwriorgapplicationsmapsagriculturemapx=shy

4922ampy=shy168ampl=2ampv=homeampd=gmia

bullBeijingHighshyLevelConferenceonClimateChangeTechnologyDevelopmentandTechnology

TransferNationalDevelopmentandReformCommissionDepartmentofClimateChangePRChina

2008httpsustainabledevelopmentunorgcontentdocuments1463aide_memoire_beijing_hlcccpdf

bullChangingExpectationsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendschangingshyexpectations

bullClimateChangeCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsclimateshychange

bullDecliningWaterQualityCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsdecliningshywatershyquality

bullGlobalTrends2030AlternativeWorldsNationalIntelligenceCouncil2012

httpwwwdnigovfilesdocumentsGlobalTrends_2030pdf

bullHowtoFeedtheWorldin2050FAO2009

httpwwwfaoorgfileadmintemplateswsfsdocsexpert_paperHow_to_Feed_the_World_in_2050pdf

Web

site

s

bullIncreasingWaterDemandCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsincreasingshywatershydemand

bullJoiningForcesforChangeDemonstratingInnovationandImpactthroughUNshyBusinessPartnerships

UNGlobalCompactOffice2007

httpwwwunglobalcompactorgdocsnews_events81Joining_forces_for_changepdf

httpwwwfaoorgNEWSROOMENnews20071000494indexhtml

Part

ners

hips

fori

mpr

ovin

gw

ater

and

ene

rgy

acce

sse

ffici

ency

and

sus

tain

abili

ty

bullMeasuringwateruseinagreeneconomyUnitedNationsEnvironmentProgrammeParisFrance

UNEPInternationalResourcePanel2012

bullPhysicalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksphysicalshyrisks

bullReputationalRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksreputationalshyrisks

bullRegulatoryRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksregulatoryshyrisks

bullRisksbyIndustrySectorCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasewatershyrelatedshybusinessshyrisksrisksshybyshyindustryshysector

bullRisksinTheValueChainCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaserisksshyinshytheshyvalueshychain

bullSharedRiskCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycasesharedshyrisk

bullUnmetEnvironmentalSocialandEconomicNeedsCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendsunmetshyneeds

bullUNshyWaterAnnualInternationalZaragozaConferencePreparingforWorldWaterDay2014

Partnershipsforimprovingwaterandenergyaccessefficiencyandsustainability

httpwwwunorgwaterforlifedecadewater_and_energy_2014indexshtml

bullWaterGovernanceforPovertyReductionUnitedNationsDevelopmentProgramme(UNDP)2004

httpwwwundporgcontentdamaplawspublicationenpublicationsenvironmentshyenergywwwshyeeshy

librarywatershygovernancewatershygovernanceshyforshypovertybreductionUNDP_Water20Governance20

for20Poverty20Reductionpdf

bullWaterinachangingworld(TheUnitedNationsWorldWaterReport3)UNWater2009

httpwwwunescoorgnewfileadminMULTIMEDIAHQSCpdfWWDR3_Facts_and_Figurespdf

bullWaterScarcityandUnsustainableSupplyCEOWaterMandatewebsite

httpceowatermandateorgbusinessshycaseglobalshywatershytrendswatershyscarcityshyandshyunsustainableshysupply

55

International Decade for Action lsquoWater for Lifersquo 2005-2015

A Decade for Water a Decade for Life

Contributing to the primary goal of the Water for Life Decade Spain has agreed to provide resources to the United Nations to establish an Office to support the International Decade for Action (UNO-IDfA) Located in Zaragoza Spain and led by the United Nations Department of Economic and Social Affairs (UNDESA) the Office implements the UN-Water Decade Programme on Advocacy and Communication (The Office) aimed at sustaining global attention and political momentum in favour of the water and sanitation agenda at all levels during the Decade

The designations employed and the materials presented in this publication in no way represent opinions

of the Secretariat of the United Nations or the UNO-IDfA lsquoWater for Lifersquo 2005-2015 concerning the legal

status of any country territory city or area or of its authorities or concerning the delimitation of its

frontiers or boundaries

United Nations Office to support the International Decade for Action lsquoWater for Lifersquo 2005-2015 (UNO-IDfA)

Casa Solans Avenida Cataluntildea 60 50014 Zaragoza Spain

Tel +34 976 72 42 20 Fax +34 976 72 42 33

water-decadeunorg wwwunorgwaterforlifedecade