Stockholm, 29 August 2014.

1. The Energy Water
Nexus
Daryl Fields
Global Water Partnership Technical Committee
Meeting of the GWP Consulting Partners 2014
Trinidad and Tobago (modified)
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2. A perspective
• We know a lot about energy-water linkages – it is multi-faceted
and complex – it is a network, not a nexus
• But Integrated Energy-Water Management (IEWM) is still a
concept – there is an opportunity to move from a topic-by-topic
approach to a systems approach
• Mainstreaming rigorous risk assessments in both energy and water
sectors can help motivate action and define focus
• Don’t be shy to simplify to key areas of focus in a practical IEWM
framework
• Much progress can be made by recognizing and upgrading (i)
existing institutional structures and (ii) a wide range of existing
tools
• But we must address many gaps in awareness, knowledge and
capacity
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3. An energy-water network map
energy
Extraction
Generation
Transport
Conjunctive Use
water
Biofuels
Thermal
Nuclear
Renewables
Geothermal
Hydropower
Energy for
water services
Water for
energy
services
Irrigation
Treatment
Distribution
Effluents & Discharges Effluents & Discharges
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4. • “Water” and “Energy” cover multiple characteristics
• With a range of economic, social and environmental impacts
Water for energy Energy for water Social/Environmental/
Economic Consequences
Quantity
e.g. adequate volumes
e.g., excess volumes
• Loss of revenues
• Loss of contracts
• Increased costs
• Asset damage
• Livelihoods
• Health impacts
• Biodiversity
Quality
e.g., turbidity
e.g., temperature
Reliability
e.g., flow pattern
e.g., peak loads
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RISK

5. Towards a management framework
energy
Extraction
Generation
Transport
Energy for
water services
Water for
energy
services
Conjunctive Use
water
Irrigation
Treatment
Distribution
Effluents Discharges Effluents Discharges
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Water
Services
Energy Services

6. Water intensity in
energy services
Energy intensity
in water services
Understand the role of water
consumption and extreme events
in energy security.
Hotspots: Biofuels, Fracking
Reduce energy burden in water-using
sectors, creating a virtuous
cycle.
Hotspots: Irrigation pumping,
Energy pricing
Demand
Management
Externalities
Resource
sharing
Reduce the impact of discharges from both energy and water
services on water quality and reliability, especially in integrated
landscapes.
Hotspots: Salinization, Power plant cooling
Apply IWRM principles utilizing modern decision tools to
understand choices (manage trade-offs, exploit win-wins) during
planning, design and operations.
Hotspots: Hydropower, Power pools, Integrated urban management
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7. ENERGY WATER
• Plant manager
• Utility/Company
• Dispatchers/Distribution
• Regulator
• Power pools
• Ministry of Energy
• Cttee on Water Resources
• Cttee on Climate Change
• Cttee on Sustainable Dev.
• Farmers
• Water user associations
• Water authorities
• Private suppliers
• Basin organization
• Ministry of “Water”
• Cttee on Water Resources
• Cttee on Climate Change
• Cttee on Sustainable Dev.
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• As complex as the energy-water network!
• With different languages
o Different spatial scales
o Different priorities and incentives
o Different market and political status
o Deep uncertainty and unpredictability

8. Towards an Integrated Energy-
Water Institutional Framework
Sustainable development
(e.g., Climate change; Economic development)
Integrated management
(e.g., Cities; Multi-purpose Infrastructure)
Energy
Sector
Water
sector
Transboundary Waters
Planning
“Plant manager
Utility
Regulator
Power pools”
“Farmers
Water user assoc.
Utility
Basin org”
Investment
Mngmt Sys
Risk mngmt
Monitoring
Adaptive mngmnt
Policies
Incentives
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9. • PLANNING : Purpose: Cross sectoral institutions
embed energy in water planning and water in
energy planning; and address trade-offs/promote
synergies
o Multi-objective energy expansion planning
o Basin planning and water licensing
o Climate change resilience programming
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• POLICIES INCENTIVES: Translate plans and
energy-water balance into signals for managers
o Economic tools: tariffs, pricing, full cost accounting
o Payment for environmental services
o Technology incentives and standards
)

10. • BUSINESS PROCESSES: Translate signals into
investments and operations
o New technologies
o Rehabilitation/Upgrades
o Operating rules
o Information management systems
• ADAPTIVE MANAGEMENT: Address changing
circumstances and uncertainty
o Data sharing
o Decision support simulations
o Forecasting
o Decision making under uncertainty
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11. All good? …. Not so fast!
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• Are these tools available?
o Water use planning at BCHydro is questioned at the corporate
level, although being used in Columbia Rive Treaty
renegotiations
• Are they “fit for purpose”?
o A multi-country basin organization is responsible for water
management but not all countries agree to include hydropower
• Are they functioning?
o In South Africa’s SATIM model, the water criterion is not active
• We are left with opportunities and many
questions….

12. Prepare your energy-water network map. Quantify
the relationships based on your own context
Quantify the likelihood and (financial/ecological/
social) consequence of a disruption in the network
Use the assessment to prioritize (i) areas of focus;
and (ii) partners/stakeholders
Identify familiar and off-the-shelf tools; Upgrade
existing tools
Gap analysis; Research priorities
What energy-water linkages do
I face?
What are my risks?
Where should I focus?
How can I act?
What else do I need?
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From the perspective of
our clients?

13. TEC Background Paper: Ongoing
Inquiry
• Case Studies good practices, lessons learned
possible typologies to assess risk
• Information exchange share experiences across
sectors and countries
engage global players (esp.
private sector)
• Topic analysis? Transboundary issues
Resilience to uncertainty and change
Hydropower
Establishing “rules of thumbs” for energy-water
network map
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14. This is a work in progress – we look forward to field
work and consultations. Please contact me if you
have interest in participating.
Dfields@worldbank.org
+1-202-458-8740
Thank-you
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