Power and the Water, Food, Energy Nexus

Power and the Water, Food, Energy Nexus

18 April 2012

Andrew Etzinger

INTRODUCTION Eskom, Water and Power

The Interconnectedness of Things

Source: http://infrascapedesign.files.wordpress.com/2011/07/wef-risks-interconnection-map-2011.jpg

The Water-Food-Energy Nexus


The Water-Energy Nexus

Image from “Energy Demands on Water Resources,” U.S. Department of Energy, 2006 p. 13

The Coal and Water Nexus by the WWF

Image from “Coal and Water Futures in South Africa: A case for conserving headwaters in the Ekangala grasslands”, WWF, 2011

GLOBAL TRENDS Facts and Figures

Fast Facts

7.7 billion people in 10 years

50% more food needed

30% more water needed

40% more energy needed

by 2030

Global Distribution of Water

Source: World Economic Forum, Thirsty Energy: Water and Energy in the 21st Century (Data: UNESCO, Cambridge Energy Research Associates)

Water for Energy

It takes a significant amount of water to create energy.

Water is used to cool steam electric power plants – fueled by coal, oil, natural gas and nuclear power – and is required to generate hydropower. Water is also used in great quantities during fuel extraction, refining and production.

Energy for Water

It takes a significant amount of energy to treat and move water.

Energy is used to extract, move and treat water for drinking and irrigation. It is used in the collection, treatment and disposal of wastewater. Energy is also consumed when water is used by households and industry, especially through heating and cooling.

Food and Water

1,000 cups of water

1,200 cups of water

9,800 cups of water

1 glass of wine

1 cup of coffee

1 hamburger

Source: http://iis-db.stanford.edu/evnts/6557/Thompson.pdf

Biofuels and Food

“When measured in calories, the energy market is twenty times the food market. So if governments would replace only 10% of global energy consumption with first-generation biofuels, they in the same stroke would double agricultural water withdrawals” Peter Braebeck-Letmathe, Chairman, Nestle Group

http://www.altenergystocks.com/archives/2011/04/the_water_food_energy_climate_nexus_pt_1.html

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SOUTH AFRICA Water, Power and Food in South Africa

Energy and Water in South Africa

Many parts of Southern Africa face two critical resource constraints on development, namely energy and water.

South Africa is a water stressed country, increasingly dependent on water sources outside our borders. We have a legacy of mining and industry driven pollution combined with an aging water treatment and distribution infrastructure.

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South Africa’s economy rely heavily on energy

Nine out of thirteen South African sectors are more intensive than their OECD counterparts

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Source: Electricity Intensities of the OECD and South Africa: A Comparison, R. Inglesi-Lotz and J. Blignaut, February 2011

Energy and Water in South Africa

Recognising this, South Africa's Water Research Commission (WRC) and Eskom have entered into a strategic partnership to fund and jointly research issues relating to energy and water use.

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IRP 2010: Energy Mix for 2030

Source: Integrated resource plan for electricity 2010 - 2030

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Carbon Disclosure Project Water Disclosure South Africa Report 2011

2010: 6 companies responded out of 56

2011: 26 companies responded out of 56

46% percent response vs international (global sample) where 60% of invitees responded.

The reported exposure to water related risks by South African respondents is significantly greater than that reported by the Global 500 sample. The overwhelming majority of companies (85%) identified at least one water risk at the direct operational level, compared to just 55% for the Global 500 sample

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Agriculture is already under threat

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Source: http://www.wwf.org.za/what_we_do/outstanding_places/drivers_of_change/food_production/

Eskom serves 84 393 agricultural customers

And ironically in South Africa the natural coal fields generally coincide with the best agricultural soils in the country

Agriculture is more than just food

86% of South Africa’s land area is already used for crops or grazing. If food production is to keep pace with demand and adapt for environmental change, sustainable agricultural practices must be widely adopted.

40 – 75% of South Africa’s population is rural and dependent on agriculture for a livelihood and consequently vulnerable to diminishing capacity for food production

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Source: http://www.wwf.org.za/what_we_do/outstanding_places/drivers_of_change/food_production/

Source: Energy, water and climate change in Southern, Lead author: Gisela Prasad, Energy Research Centre University of Cape Town, South Africa

ESKOM An Overview

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Eskom Introduction

Eskom generates approximately 95%

of the electricity used in South Africa

and more than 40% of the electricity

used in Africa.

Eskom generates, transmits and

distributes electricity to industrial,

mining, commercial, agricultural

(84 393 customers) and residential

customers and redistributors.

Eskom is one of the top 20 utilities in

the world by generation capacity.

Eskom: Some Key Facts

237 430 GWh

41 194 MW

4.7 m

Maximum self-generated capacity

Total production

Customers

2011

80 000 MW

16 304 MW Additional capacity by 2017

Total capacity by 2026

Build Programme

Source: Eskom’s Integrated Report 2011

Eskom’s net capacity mix – 31 March 2011

Hydro, 1.5% Wind, 0.0%

Coal, 84.9%

Gas, 5.8%

Nuclear, 4.4%

Pump Storage, 3.4%

Eskom, Coal and Water

Coal

Largest primary energy source in South Africa

Burnt 124.7 million tonnes of coal in the year ending 31 March 2011 (2010: 122.7 million tonnes)

Water

327 252 million litres of water used in year ended 31 March 2011

Relative water consumption to generate electricity increased from

1.34 l/kWh sent out as at 31 March 2011

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A number of global interactions take place

• 25 – 27 January 2012: World Economic Forum Annual Meeting, Davos

• 14-16 February 2012 : KPMG Global Summit; Business Perspective on Sustainable Growth: Preparing for Rio+20; Sheraton New York Hotel and Towers, New York

• 21-24 February 2012 : African rollout of the International Year of Sustainable Energy for All at UNEP’s Governing Council meeting, Nairobi

• ? March 2012 : Fourth meeting of the SG’s High-Level Group, TBD

• 19-21 March 2012 : Bloomberg New Energy Finance Roundtable, New York

• 19-23 March 2012: 1st round of "informal-informal" negotiations – New York

• 26-27 March 2012: 3rd Intersessional Meeting – New York

• 23 April - 4 May 2012: 2nd round of “informal-informal” negotiations – New York

• 25-26 March 2012 : Third Clean Energy Ministerial, London

• 13-15 June 2012 3rd Preparatory Committee Meeting - Rio de Janeiro, Brazil

• 16-19 June 2012 : Thematic sessions organized by the Brazilian government – including one on energy, Rio de Janeiro

• 20-22 June 2012, Rio+20 UN Conference on Sustainable Development - Rio de Janeiro, Brazil

There are additional planned meetings which we will not being attending

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Carbon Disclosure Project: Eskom as Best Practice Example

In early 2011, the Board of Eskom approved the Water Conservation / Water Demand Management Programme (WCWDM) as a strategic initiative.

The five year programme extends from 2012 to 2016.

The objective of the WCWDM programme is to,

1. optimise water consumption and manage water demand,

2. promote conservation and protection of freshwater resources, and

3. champion WCWDM practices.

Eskom’s strategy is based on a multi-pronged approach working with regulatory bodies, suppliers, customers (demand side management) as well as implementation of best water management practices and good housekeeping towards efficient water utilisation at the power station level.

Source: CDP Water Disclosure South Africa Report 2011

THE FUTURE Opportunities to Improve

Opportunities

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Energy Diversification

Energy Efficiency

Southern African Power Pool and Hydro

Diversification: Government’s large scale renewable energy procurement programme

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The South Africa’s Integrated Resource Plan (IRP) for electricity envisages

that independent power producers (IPPs) and State utility Eskom will build a

combined renewables base of 17,800 MW by 2030.

During August 2011, the South African Government took the first step in this

multidecade clean-energy investment programme by inviting tenders for

renewable capacity to be developed by independent power producers.

53 bids, representing some 2,100 MW of potential capacity, were received by

the DoE during this first bidding window. On 7 December 2011 the DOE

announced the first 28 successful renewable bidders for a total of 1,415.5

MW capacity. The preferred bidders named included 18 solar photovoltaic

(PV) projects, eight onshore wind projects and two concentrated solar power

(CSP) projects.

This round of tenders was the first of potentially 5 bidding windows. The

second bidding window closed on March 5, 2012 with 79 tenders representing

3 233 MW of potential power generation capacity.

Tactical diversification options

Using renewable energy technologies for water services is able to address both the need for energy and the need for water services in the most vulnerable areas.

Wind and solar photovoltaic renewable energy technologies use hardly any water and are therefore the energy technologies of choice in water-scarce remote areas which are not connected to the national electricity grid.

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Extending energy conservation to renewable energy sources

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Optimal energy usage requires a

combination of energy efficiency and

small-scale renewable energy

interventions.

Accordingly several initiatives,

including India’s Ministry of Power

and Canada’s Clean Air Partnership,

have broadened their definitions of

DSM to incorporate

green/renewable energy.

Eskom IDM, in consultation with

NERSA, is hoping to follow suit.

Energy Efficiency

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Altering consumer behaviour:

Demand must be decreased

Efficiency must be increased

Achieved through Integrated Demand Management (IDM)

programmes

Every kWh saved also saves ~1.5 liters of water and 1 kg

of coal

IDM activities previously focused primarily on three areas

164

527

1,440

Industrial and mining

process optimisation &

efficiency upgrades

48

2,006

6,667

43.5 m

38,731

84,677

30

60

Mass rollouts

(mainly of CFLs)

Solar Water Heaters

(high and low pressure

systems)

projects

megawatts

gigawatthours/annum

projects

megawatts

gigawatthours/annum

low pressure systems

megawatts

gigawatthours/annum

high pressure systems

CFLs rolled out 2004-2010

Total Mining sector Savings = 287MW @ R613 million

Compressor Management

Demand Savings = 76MW

Eg. Cooke Mine

Pumping Demand Savings = 143MW Eg. Union Mine

Fridge Plants


Eg. Harmony Mine

Winders & VSD & Other


Eg. Bambanani Mine

Typical energy savings projects undertaken

Targets, Year to Date and Cumulative Verified GWh Savings as at 31 March 2011

Figures shown for the 2003 financial year are inclusive of the cumulative

savings since DSM inception

Cumulative YTD verified savings represents the savings achieved for the

2010/11 reporting period

Total Verified Energy

Savings since inception:

19 158.0 GWh

2003* 20042005-3monthperiod

2005/6 2006/7 2007/8 2008/9 2009/10 2010/11

Eskom Target GWh 429.0 995.1

Verified YTD GWh 4.1 59.5 52.1 75.5 699.0 1499.3 2304.7 1415.1 706.8

Cumulative YTD Verified GWh 4.1 63.5 115.6 191.2 890.2 2389.5 4694.2 6109.3 6816.1

0

1000

2000

3000

4000

5000

6000

7000

8000

Waste heat recovery enables economic and ecological efficiency improvements

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67% The recovery of heat and water in

the production process and

reintroducing these streams back into

the originating process offers

significant improvement to the

efficiency of the operation and

ultimately makes business sense as

the operating costs are reduced.

| Sources: Eco-efficiency opportunities fact sheet. Manufacturers and Processors: Waste Heat. Compiled by the Eco-Efficiency Centre, a non- profit, non-

government educational and environmental management support centre for small- and medium-sized enterprises in Nova Scotia.

* Eco-Efficiency Program for Manufacturers (E2PM) that ran from 1998 t0 2009.

percentage of E2PM*

participants, who

identified waste heat

recovery as a key

efficiency intervention

(second most common

intervention in the

programme)

Blue is the next green

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Globally energy savings initiatives are expanding to

incorporate water saving opportunities.

Australia, similarly water stressed to South Africa, introduced

water into their efficient building pursuit and now requires new

residential buildings and all major renovations across all

states to comply with 5-Star energy and water efficiency

rating (or similar e.g. BASIX (Building Standards

Sustainability Index).

Water and energy conservation have spurted innovation and

the use of more conservation-oriented fixtures, rainwater

recovery systems and innovative new water technologies.

Water-energy nexus gain stature for corporate risk management

| Sources: http://www.waterfootprint.org/

http://www.environmentalleader.com/2011/05/05/corporate-water-energy-footprint-critical-work-for-risk-management/

Several recent developments herald a time of closer

attention to water footprints and related energy risks in

the corporate world.

One positive step is the initiation and inaugural report

of 175 companies in the CDP’s water disclosure

program (in which Eskom voluntarily participated).

Another significant step is the 2011 publication of a

water footprint assessment manual by the water

footprint network following extensive stakeholder

consultation.

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BEST winery benchmarking and water and energy savings

tool developed by Lawrence Berkley laboratories that rates

and benchmarks wineries in terms of energy and water

usage. Wineries are assessed and rated using an Energy

Intensity Index (EII) and Water Intensity Index (WII).

Various industries are adopting water and energy conservation strategies

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Low flow toilets and water savings devices for

energy efficiency?

Water efficiency contributes to

local water heating requirements,

but also saves energy associated

with water treatment , storage,

pumping and distribution.

Low flow toilets reduce water

usage by between 50 and 80%.

An individual may therefore

save up to 2,271 litres of water

a month.

The energy use for pumping

and treating of potable

water for domestic and

industrial use is estimated

at between 2 – 3 % of total

consumption of which 25%

can potentially be saved*.

Statistics reported by the USAID Watergy Initiative *

Combined water and energy

conservation address both

pressing issues of energy and

water supply constraints.

Low flow faucets and

showerheads also reduce water

consumption and hot water

consumption (i.e. water heating

needs).

Southern African Power Pool and Hydro

CLOSING

No Technology is Inherently Good or Bad

Source: WEF, Thirsty Energy: Water and Energy in the 21st Century

The appropriateness

of a technology

depends on the local

situation and the

resources

available

The Interconnectedness of Things


Solutions require nuanced thinking

Because the water, food, and energy nexus involves so many complex interactions, it can be difficult to approach.

It is imperative to find solutions that integrate food, water and energy.

Solutions require dialogue and collaboration

Countries should learn from the mistakes of others. Improving communication will encourage making decisions based on appropriate data, promote progress in one sector or region while not harming progress in another, and support collaboration to find the most effective solutions.

Solutions require increased efficiency

There is an urgent need for increasing resource productivity, improving efficiency, and reducing waste to produce more with less.

Eco-Logic

The more complex the system, the

greater the risk of systemic breakdown,

but also the greater the potential for

opportunity

http://www.flickr.com/photos/oybay/124575945/

www.eskom.co.za www.eskomidm.co.za

Thank You

Power and the Water, Food, Energy Nexus

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