Wfe nesus hpl ed

EGM on MIR in the Water Sector, UNCC Bangkok, ESCAP, 22-23 September 2011

Water-Food-Energy Nexus in a changing world:

Implication on investment in the water sector

Hongpeng LiuChief, Energy Security and Water Resources SectionEnvironment and Development Division


Outline of presentations

Linkages between Water-Food-Energy

Some data about Water, Food & Energy

Challenges Address the challenges:

Investment implications in water sector

Monitoring of Investments and Results

Moving forward


Linkages between Water-Food-Energy


Some data – Water, Food & Energy

80% fresh water in Asia used for agriculture 50% of cost of delivering urban water for energy Huge amount of water consumed for power

generation and cooling Water for bio-fuels competes with water for

agriculture Crops for biofuels competes with food from

agriculture Energy production accounts for about 30% water

withdrawals in Europe & 40% in US Energy demand is projected to rise by 40 to 50% for

Asia by 2030, big implications on water


Water for energy: primary fuels

Raw MaterialsRaw Materials

OilTraditional Oil

3-7 l/GJEnhanced Oil Recovery

50-9000 l/GJOil Sands

70-1800 l/GJ

OilTraditional Oil

3-7 l/GJEnhanced Oil Recovery

50-9000 l/GJOil Sands

70-1800 l/GJ

BiofuelsCorn

9000-100.000 l/GJSoy

50000-270000 l/GJSugarN/A

BiofuelsCorn

9000-100.000 l/GJSoy

50000-270000 l/GJSugarN/A

Coal5-70 l/GJCoal

5-70 l/GJ

GasTraditional Gas

Very small amountShale Gas36-54 l/GJ

GasTraditional Gas

Very small amountShale Gas36-54 l/GJ

Oil Refining25-65 l/GJ

Oil Refining25-65 l/GJ

Ethanol47-50 l/GJBiodiesel

14 l/GJ

Ethanol47-50 l/GJBiodiesel

14 l/GJ

Coal to liquids140-220 l/GJ

Coal to liquids140-220 l/GJ

Natural Gas Processing

7l/GJ

Natural Gas Processing

7l/GJ

Delivery of Natural Gas and Liquid Fuels to

Customer involves only

small amounts of water

Delivery of Natural Gas and Liquid Fuels to

Customer involves only

small amounts of water

TransformationTransformation Del. to CustomerDel. to Customer


Water for energy: electricity generation


Delivery to Customer through

electric grid involves very little

water consumption

Delivery to Customer through

electric grid involves very little

water consumption


Thermoel. FuelsCoal

20-270 l/MWhOil & Natural Gas

Wide varianceUranium

170-570 l/MWh

Thermoel. FuelsCoal

20-270 l/MWhOil & Natural Gas

Wide varianceUranium

170-570 l/MWh

HydroelectricHydroelectric

GeothermalGeothermal

SolarSolar

WindWind

Thermoelectric Generation(closed loop)

720-2700 l/MWh

Thermoelectric Generation(closed loop)

720-2700 l/MWh

Evaporation LossAverage: 17.000 l/MWh

Evaporation LossAverage: 17.000 l/MWh

5300 l/MWh5300 l/MWh

Concentrating Solar:2800-3500 l/MWh

Photovoltaic: Minimal

Concentrating Solar:2800-3500 l/MWh

Photovoltaic: Minimal

WindWind


Energy for water: supply & services


Survace Water0-2400 kWh/million lSurvace Water0-2400 kWh/million l

Groundwater37 meters

140 kWh/million l122 meters

530 kWh/million l

Groundwater37 meters

140 kWh/million l122 meters

530 kWh/million l

Municipal WastewaterMunicipal

Wastewater

Treatment to Drinking Water Standards

High Quality Groundw.26 kWh/million l

Brakish Groundw. Desalination

300-1400 kWh/million lSeawater Desalination

3600-4500 kWh/million l

Treatment to Drinking Water Standards

High Quality Groundw.26 kWh/million l

Brakish Groundw. Desalination

300-1400 kWh/million lSeawater Desalination

3600-4500 kWh/million l

Wastewater Treatment~ 650 kWh/million l

Wastewater Treatment~ 650 kWh/million l

~290kWh/million l~290kWh/million l



Water for food

a kilogram of tomatoes requires 160 liters of water (Water Footprint Network)

Meat – 30,000 – 70,000 liters per kg

Sugarcane – 250 tons per ton of cane

Chocolate - 24,000 liters per kg (Ghana)


Challenges

Multiple Challenges in water sector Increasing water scarcity threat, High water utilization,

Deteriorating water quality, natural disaster, ecosystem changes, cost recovery and performance management remain major challenges to improving sanitation etc

Climate change – exacerbate these challenges Populations & economic growth Agricultural sector & crop production decline Multiple competition of freshwater in developing

countries Growing interdependency of water, food &

energy Water – new factor for food & energy security;

central element in international relations (bilateral & multilateral)


Address the challenges: Investment implications in water sector

Areas Water Supply and Wastewater Service Environmental Services and System Integrators Component Manufacturers and Solution

Providers Sanitation

Traditional investment Gov budget, aid, loans, equity, PPPs etc.

New trends Specialized infrastructure and water funds More tailored local currency lending strategies Securitization and second market trading


Monitoring of Investments and Results (MIR) in Water Sector

MIR, the 4th of 5 Key Result Areas of APWF APWF an outcome of the 3WWF in Tokyo,

March 2003, launched at the 4WWF in Mexico, March 2006

1st MIR was reported to the 1st APWS, Beppu, Japan, Dec 2007

To provide an indication of the improvement made in the water sector in ensuring socio-economic development


Monitoring of Investments and Results (MIR) in Water Sector

Very complex Cross-sector Involving public/private sectors and civil societies Within the public sectors

The various ministries and departments Federal, provincial/states and local levels

in a continuing worsening and challenged environment of pollution/urbanization, multiple global crisis and climate change impacts

Different levels of development will influence the different investments expanded for the various utilities and infrastructures as indicated


Differences on Infrastructure and Utility Allocation, circa 2000 between Japan and Malaysia

Sources: Japan expenditure for 2000 and 2001Budget Allocation for Malaysia, 8th 5year plan (1996-2000)

Flood Mitiga-tion

Roads/Highways

Water supply Elecricity Drainage/Sewerage

Railway Ports0

10

20

30

40

50

60

2.96

27.01

7.65

48.54

3.05

7.87

2.89

20.8

38.4

3.2

8.8

17.6

1.6

9.6

Shares of Development Allocation for Infrastructure and Utilities

MalaysiaJapan

%


Moving Forward

Recognize MIR as an effective tool

Develop a framework for MIR

Information exchange

Follow up activities towards the 2nd APWS


THANK YOU

Technology

Wfe nesus hpl ed