Western Irrigation Futures
Customer Information Sessions May 2010
Werribee Irrigation District
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Today's discussion …
1. Key feedback from customer workshops and surveys
2. Key findings from WIF
– Bulk water
– Infrastructure options
– Environment
– On-farm management
3. Possible path forward
– Water and channel system
4. Next steps
– Customer reference group
– Next season
3
Recap…
WIF Atlas
Customer Consultation
Technical Workshops
Draft Options Paper
Detailed Technical Work
Bulk Water Environment Infrastructure On farm
Final Options Paper
Customer engagement and consultation
Government / Agency consultation
Today’s
discussion
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1. Customer Feedback
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What you told us you would like…
• Key Issues
– Fit-for-purpose water
– Sufficient volume to support historic production levels
– Water at affordable price, and
– Fix leaky channels
• Other concerns raised
– Farming viability
– Agricultural practices
– Future of the district
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2. Key Findings:Bulk Water
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Bulk water options investigated…
• River water • Desalination of recycled water
– Reverse Osmosis (RO)– Nanofiltration (NF)– Electrodialysis Reversal/Ultra Violet
• Trading options – North/South pipe line– Macalister Irrigation District
• Metro water– Water from Melbourne Pool via entitlement or supply agreement
• Recycled water – Continuation of supply from WTP – Enhancements
•Storage•Increased flow rates
• Groundwater• Storm water harvesting
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River water supply – climate scenarios…
Lerderderg River Seasonal Inflows (at Sardine Creek)
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Salinity at Melton Reservoir and Werribee Weir…
EC Werribee River
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
1/07
/200
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1/08
/200
7
1/09
/200
7
1/10
/200
7
1/11
/200
7
1/12
/200
7
1/01
/200
8
1/02
/200
8
1/03
/200
8
1/04
/200
8
1/05
/200
8
1/06
/200
8
1/07
/200
8
1/08
/200
8
1/09
/200
8
1/10
/200
8
1/11
/200
8
1/12
/200
8
1/01
/200
9
1/02
/200
9
1/03
/200
9
1/04
/200
9
1/05
/200
9
1/06
/200
9
1/07
/200
9
1/08
/200
9
1/09
/200
9
1/10
/200
9
1/11
/200
9
1/12
/200
9
1/01
/201
0
1/02
/201
0
1/03
/201
0
1/04
/201
0
EC
0
1
1
2
2
3
3
4
4
5
5
Rat
io W
errib
ee W
eir
to M
elto
n sa
linity
Melton
Werribee weir
WerribeeWeir/Melton ratio
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Desalination of recycled water…
• 3 technology 0ptions Investigated…– Reverse Osmosis (RO)– Nanofiltration (NF)– Electrodialysis Reversal (EDR) and disinfection
• Capital cost
– based on taking salt from recycled water and mixing it with the standard recycled water – This is the cheapest option
Quality / Volume 40 ML/day 65 ML/day 90 ML/day
1,000 EC $130m – $170m $170m – $230m $210m – $280m
1,300 EC $110m –$140m $130m – $180m $150m – $210M
1,500 EC $90m – $120m $120m – $160m $140m – $190m
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Desalination recycled water supply cost…
Supply system Efficiency $ per ML
No channel improvement 65% $2,562
Piped channels 90%+ $2,186
Lined channels 85% $2,097
• Assumptions…– 1500EC target– 65ML day supplied
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Trading options…
•North South Pipeline
– Government committed to maximum 75,000 ML
– Commitment to Northern Irrigators that this would be maximum amount
– Option to access water from northern Victoria not available
• MID – Thomson Dam
– 11,000 ML Entitlement on key rivers in the MID
– 30% can be transferred across the system
– Water must be purchased and water transferred through district.
– Cost to transfer is $430 per ML for 2009/10.
– Must be delivered with another product (river / recycled water)
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Other options…
• Groundwater
– Fully allocated and currently not available
– Deeper aquifer is salty and not suitable without high cost treatment
• Storm water
– MWC currently investigating storm water harvesting options that may provide water for irrigation in the long term
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2. Key Findings:Infrastructure Options
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Infrastructure options ….
• Pipelining
– Options investigated included piping 44 km
• Pumped pressure pipe system, and
• Gravity piped system
» $44m and subject to cost escalation
– Has a life expectancy of 80 years
– Provides highest efficiency 90%+
– Full cost recovery over 25 years
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Infrastructure options ….
• Channel lining
– Options investigated included
• Lining with polypropylene roll out liners
• Spray-on membrane liners
• Life 25 years
– Expected efficiency 85%
– Cost ranges from $16m – $20m
• Water measurement
– Remote control regulators installed at key sites
• Improve measurement and operation flexibility
– Customer outlets – metering to use magflow meters
– Total cost – approx $2m
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2. Key Findings:Environmental issues
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On-farm issues …
• Commercial considerations– Cost of production – Choice, mix and rotation of crop types– Scale of operation and constraints– Land values, planning regulations and impacts of development on farming
• Water resource availability– Security of water supply to grow crops – Scope to reduce water use by utilising other irrigation methods
• Agronomy and water quality– Identification and costing of best practice requirements for irrigation, soil
salinity and nutrient management
• Environmental implications– Understanding of potential impacts
• Social factors– Social, cultural, adoption of technology, management practices and business
decisions
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3. Possible Path Forward
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Possible future supply approach…
• Government announced access to 2000ML of Melbourne’s water
– Potential to use most metro water in summer to reduce recycled water salinity to 1,600 EC’s
– Total flow rate increased from 60ML/d to approximately 80ML/d
– Potential to ‘bundle up’ and offer a ‘shandy’ (river / recycle / metro water) product at a single price from 2011/12
• Means everyone pays, everyone gets salinity benefit
– We would only access metro water when
• River water allocations are low and
• Salinity is high
• Supply may include a mix of river water (when available), recycled water and potable water to lower salinity
• Channel lining, metering and some automation
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What does this mean for customers…
• Improved outcome
– More water available for irrigation
– Access to lower salinity water to improve soil salinity and plant health
– Reduced application of soil conditioners and other additives and therefore less on farm cost
– Potential to increased on-farm production, yield and crop quality
– Long term supply contract
– Improved viability of farming
• Leads to environmentally sustainable outcomes for the district
• The trade off
– Higher price for recycled /metro water
– Greater take or pay commitment
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Recycled water…
• Currently contracted to 2019 • MOU being developed with Melbourne Water
– Revision of current agreement from 1 July 2011 for 20 to 25 years– Use current base price from the recycled plant (continued subsidy)– 60 ML day flow rate; 11,100ML per year contract volume – best
endeavors above that (as per now)– Additional costs to be paid by growers for significant service
improvements as determined via regulatory processes, e.g.• Storage (reliability) • Larger pipe and pump (higher flow rates )
– Desire for increased ‘take or pay’ component – currently 25%– Best endeavors reliability – as per now
• Improvement options– Storage– Flow rate enhancements
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Effective price comparison…
0
500
1,000
1,500
2,000
2,500
Sta
tus
Qu
o
De-s
al:
pip
ed
De-s
al:
lin
ed
Metr
o:
pip
ed
Metr
o:
lin
ed
Eff
ecti
ve C
harg
e (
$/M
L)
Effective Price =
Total volume delivered Total price paid
No rebate10% water allocation
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Effective charges…
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4. Key FindingsNext steps
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Consultation process…
• Establish Customer Reference Groups – WID and BMID
• Seek nominations– 1 WBMCCC for each group– 6 customer representatives for each group – Stakeholder representatives
• Appoint independent chair
• Terms of reference to include– Bulk water supply options – Pricing matters– Infrastructure issues (e.g. channels and storages)– Environmental matters – Contract matters (recycled water, other bulk supplies)
• How do you get onto the Customer Reference Group?
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SRW in consultation with CRG…
• Finalise district strategy
• Communicate strategy to all customers
• Develop new customer contracts
• Develop business case to support infrastructure investment
• Implement strategy
• Transition to new operating arrangements 2011-2013
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District update…
• Recycled water supply
– Continue supply up to 68ML day
• River water
– Expect minimum 6% starting allocation
– Expect water quality to improve with increase in allocation
• Metro water
– Available for next season
– Discussion required on how this is offered
– Delivery price in the order of $960 per ML for 2010/11
– Detail to be worked through with CRG
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Questions?