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UTILITY Week - 12th February 2016

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The Topic: Resilience RESILIENCE THE TOPIC 12 | 12TH - 18TH FEBRUARY 2016 | UTILITY WEEK Comment: COP21 could be the catalyst the world needs to take water efficiency seriously I ncreasing water resilience is a vital area for action across the world. The Paris agreement on climate change at COP21 could be the catalyst for improved water resilience and reduced water-related energy use in our cities, supporting progress towards a low-carbon future. The agreement is particularly pertinent to the water sector because pumping and treating water and wastewater is so energy intensive. Additionally, many climate change impacts manifest as changes in the water environment: cities and urban areas not only use a lot of water but are most exposed to water-related risks such as floods. Because of this, many are driving change towards more resilient water services. This was evident at COP21, where in addition to national governments and their intended contributions, we heard about various other initiatives and commitments being made around the world by regional governments, cities and businesses. One example is the Paris Pledge for Action, initiated by the French COP21 presi- dency. One thousand organisations, includ- ing water companies and industrial water users, have committed to reduce emissions, build resilience now, and meet or exceed targets before 2020. Resilience and the water sector Ofwat set up a resilience taskforce to explore how the regulator should meet the resilience obligation the government placed on it in the Water Act 2014 – here's what it said. "The regulator must ensure that water companies can secure the long-term resil- ience of water and sewerage services." T he 2014 Water Act saw a resilience duty placed on Ofwat. This means the regulator must ensure that water com- panies can secure the long-term resilience of water and sewerage services, and of water and wastewater networks. Responding to this, Ofwat created an arm's-length body to address three major issues: defining resilience; highlighting what suppliers need to consider as they think about providing resilience; and what Ofwat needs to consider in relation to resilience. This "task and finish" group worked for a year producing a series of short reports before producing a final report setting out ten recommendations (see box, right) for the sector designed to help meet the challenges, which will feed into the regulator's thinking for the next price review, PR19. Ofwat director Nicci Russell, who was a member of the taskforce in a personal capac- T he vast majority of the world's power generating capacity is heavily reliant on the use of water. Most obviously water is driving force behind hydropower plants, but lots of the stuff is also needed to feed boilers in thermal plants, and for cool- ing in thermal and nuclear plants. As such, the water-energy nexus has a multiplying effect on the already significant resilience challenges faced by each sector alone. In 2003, the effects of a prolonged heat- wave forced EDF to cut its nuclear output in France by an amount equivalent to shutting down "at least four reactors", according to an International Energy Agency report Water for Energy: Is Energy Becoming a Thirstier Resource? In 2012, a delayed monsoon led to reduced hydropower generation in India, which contributed to a two-day blackout that affected more than 600 million people. Research by Wageningen University in the Netherlands predicts that between 2040 and 2069, the generating capacity of up to three-quarters of the hydropower plants in the country will suffer because of reduced stream flow. Overall annual capacity is expected to fall by 1.2-3.6 per cent. Reductions in output are forecast at 81-86 per cent of the thermal plants too because of higher water temperatures, as well as decreased stream flow. Overall annual capacity is predicted to fall by 7-12 per cent and more than two-thirds are expected to see maximum monthly reductions of more than 30 per cent. The Wageningen study also examined the efficacy of measures to make hydropower and thermal plants resilient. Increasing the efficiency of plants via new technology is one option. According to the report, a 10 per cent increase in effi- ciency could completely offset lost hydro- power capacity in most regions around the world. However, even a 20 per cent increase in efficiency would be insufficient to offset losses at thermal plants. The report suggests fuel switching from coal to gas as a more viable alternative in most areas. TG Electricity: Generators face further capacity crunch as water stress increases ELECTRICITY GENERATION IS A WATER-HUNGRY BUSINESS The International Energy Agency estimates that energy production accounts for about 15 per cent of global water withdrawals – 90 per cent of it for generation and the rest for fuel extraction, transportation, etc.

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