Two roads diverged in a yellow wood

• The public water utility of the future

The public water utility of the

future

2

National landscape Politically unstable

Traffic congestion driving infrastructure debate

Rural water focus

Demise of National Water Commission

• Reform now with Productivity Commission and Infrastructure Australia

• Smart Cities Plan touches on water reform

Funding and market reform of the transport sector represents the most significant infrastructure challenge for Australia’s governments.

3

Over the horizon• Empowerment

o Technology enabledo Driving disruption

• Demise of major political partieso Rise of identity and local politics

• Globalisation = Temporary migration

• Breakdown of large institutions

• Volatility the new norm

4

Two roads diverged in a yellow wood• Followers

• Policy takers

• Risk averse

• Fails to understand business

• Leaders

• Policy makers

• Clever risk takers

• Understands their business

5

What business are you in?

6

Drivers of change 2020 - 2050

2020

• End of Net FiT for early solar adopters – now shopping for best deal

• Solar and batteries value competitive with grid electricity

2030• Customers = users and generators/manufacturers

common• Regional and localised services

2040• Global water crisis• Miners enter market

2050

• MAR, desalination and geothermal energy common• Cross-sectoral, multiple markets and players (micro and

macro)

7

2020 – Empowered solar customers

End of Gross and Net FiT for early adopters in WA, SA, Vic and NSW

75,000 WA customers affected

Solar and batteries value-competitive with grid electricity

2030 – Micro grids and localised services

Prosumers drive electricity market and price deregulation

Micro-grids and co-ops take off

Bespoke services managed by Government’s stewardship of the network through strategic policy and regulatory oversight

9

2040 - Global water shortages

By 2050 about 40% of the projected global population of 9.4 billion will experience critical water shortages.

Global water demand: Baseline scenario, 2000 and 2050

Note: BRIICS: Brazil, Russia, India, Indonesia, China, South Africa. RoW: Rest of the world. Source: The Environmental Outlook Baseline; output from IMAGE model suite.

Water more valuable than oil

Miners enter market

Fully privatised water services

10

2040 – The Conscious business built from the contemporary strategy

11

“We sustain life”WHY“We sustain life”

HOWShared decision-makingAsset optimisationTailored servicesBespoke business structuresGlobal citizen

WHATProvide energy and water services

12

Who are your Prosumers?Water and energy Users Generators Manufacturers

HouseholdersCo-operativesStrata companiesIrrigatorsCouncilsCommercial businessesDevelopers

Solar PV output is forecast to triple to more than 2,500GWh within a decade.

13

What do they want? Reliable and customised

services Value for money Respect

Types of packages Water/wastewater services only Water/wastewater and energy

services Efficiency packages Liveability packages

On and off grid Bundled and unbundled Smart metered One service provider = One bill

User

PartnerSupplierPROSUMER

14

The new landscapeGovernment

Bipartisan, long term

strategy and policy

making

Strong ‘network

stewardship’

regulation

Ownership and structure

Private sector

Off-grid individualsNational, regional,

local providers

Customers and CommunitiesCustomer-

centric services

Holistic community engageme

nt

Drive economic

development

15

How will we innovate to get there?

Source: Bettini, Y. and Head, B.W. (2016) Governance structures and strategies to support innovation and adaptability. Melbourne, Australia: Cooperative Research Centre for Water Sensitive Cities.

16

Lead the change

Positioning

Leveraging

Optimising

• Know your strengths• Define the ‘why’• Incorporate ‘context’

• Prosumer relationships

• Private sector• Local government

leadership• Assets (includes

customers)• Disruption =

opportunity• Regulation