Report: Opportunities for Renewable Energy in the Australian Water Sector

REPORT OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR

Prepared for Australian Renewable Energy Agency (ARENA)

Prepared by Beca Consultants Pty Ltd (Beca) ABN: 45 003 431 089 November 2015 EXECUTIVE SUMMARY The Australian water sector is a vital component of the Australian economy and livelihood, playing an important role in providing water supply and treatment to the residential, commercial, industrial and agricultural sectors. In providing this essential function, the Australian water sector is also a large user of energy consumed during the supply, treatment and distribution of water for a wide range of uses and thus represents an excellent opportunity for renewables to be integrated as a significant component of its energy supply.

In line with its objectives to improve the competitiveness and This study has evaluated the opportunities, barriers and increase the supply of renewable energy in Australia, the current trends for renewable energy use in order to identify Australian Renewable Energy Agency (ARENA) has chosen to priority areas where ARENA could have the most potential investigate the opportunity for water sector specific funding impact in influencing improved renewable energy use and knowledge sharing priority areas which demonstrate the within the sector. The study has identified a number of best potential for improved renewable energy uptake in this renewable energy opportunities relating to both the urban industry. In order to investigate and determine an appropriate and agricultural water sectors, each having their own unique focus and framework for evaluating renewable energy characteristics and advantages and which are outlined in this opportunities in the water sector, ARENA has engaged Beca report. to undertake a study to identify priority areas to help inform ARENA’s funding and knowledge sharing activities. In determining the selected priority areas, a range of factors were considered to evaluate which areas represented the best As a part of this investigation, the following activities were potential to ARENA, including: undertaken: • Likely scale of the opportunity by 2030-2040 • An international water sector literature review, to identify • Potential for growth international examples of current trends of renewable energy use in the water sector and their potential relevance • Ability for ARENA to influence investment for Australia; • Fit within existing ARENA portfolio and existing priority areas. • An Australian water sector literature review, to identify As a result of the investigations, four priority areas have been existing renewable energy use and current trends in Australia; selected to provide the framework for informing ARENA’s

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR investment and knowledge sharing activities, outlined as • Broad water sector stakeholder engagement processes follows: including surveys, interviews, workshops and draft report feedback to understand existing renewable energy use, along with opportunities and barriers for its use and to test the level of engagement within the sector, and; • Multi-criteria analysis of renewable energy opportunities to identify the key priority areas.

RENEWABLES IN BIOENERGY IN WATER PUMPING WASTEWATER AND IRRIGATION TREATMENT EXECUTIVE SUMMARY

STORAGE TECHNOLOGIES WATER SPECIFIC & DEMAND TECHNOLOGIES MANAGEMENT i processes, forwaterpumpingandirrigationapplications. Renewable energytechnologies,orapplicationsoftechnologiesand/or AND IRRIGATION RENEWABLES INWATER PUMPING are subjecttohigherpricesorinoff-grid applicationswhere thecostofpumpingishigher. to offset energysupplycurrently usedforpumping,particularlyinthosepumpingapplicationswhich component ofurbanwatersupplyanddistribution.Goodopportunity existstouserenewable energy As wellasagriculture andirrigation,waterpumpingaccountsforthemostsignificant energyuse seasonality ofirrigationpractices. to highcostofpumping.Significant opportunityalsoexiststoovercome challengesassociatedwith purposes asfarmersare increasingly exposedtohighelectricityanddieselpriceswhichcontribute pumping. Agoodopportunityexiststouserenewable energypumpingsystemsforirrigation including theabilitytohavedemonstrationprojects whichcancatalyseuptakeofrenewable energy further cooperationandaggregation toovercome energyissuesaffecting thesector asawhole, irrigation meansthatmuchofthesectorisdisaggregated, andthisrepresents anopportunityfor including diesel,LPGandgridsuppliednon-renewable electricity.Thenature ofagriculture and significant opportunityfor theuseof renewable energyto replace current pumpingenergysources Water pumpingapplications,asasignificant energyuserwithinthewatersector, represent a 2013). show thatbetween50and80%ofthetotalenergybillrelates topumping(NSWFarmersAssociation the scaleofenergyuseforwaterpumpinginagriculturalenvironments, auditsoffarmsinNSW on farms(ABS2014)andthisispredicted torisemore than20,000GLby2050.Asanexampleof in pumpingirrigationwater(UNESCO2014).InAustralia12,000GL(65%)ofallbulkisused that across atotalofthree hundred millionirrigatedhectares globally,62TWhisexpendedannually Water pumpingformsasignificant portionofenergyuseinirrigationandagriculture. Itisestimated Reasoning • • activities that: toexistingdieselpumpingapplications.Thismayinclude pumping asanalternative for pumpingandirrigationapplications,withafocusonrenewable energyusefor of technologiesand/orprocesses toprovide for increased renewable energyuse Focus isontheimplementationofrenewable energytechnologiesorapplications as theyrelate toimproved useofrenewable energypumpingtechnologies. Develop understandinganddemonstratebenefitsof pumping technologies; Demonstrate approaches thatovercome barriersandreduce costsof or irrigation systemdesignandpractices renewable energy

ii OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR EXECUTIVE SUMMARY BIOENERGY IN WASTEWATER TREATMENT

Improved utilisation and generation of bioenergy in wastewater treatment applications.

Focus is on supporting increased utilisation and development of bioenergy in wastewater treatment processes. This may include activities which:

• Support the use of co-digestion for increased biogas production through: demonstrating the viability and overcoming barriers to co-digestion of different waste feedstocks such as residential and commercial food wastes or agricultural wastes for anaerobic digestion; assisting with aggregating, processing and characterising co-digestion feedstocks and potential sources for co-digestion including potential business models for waste diversion; • Demonstrate the benefits ofbiogas storage technologies for improved viability of biogas projects through greater flexibility in biogas electricity generation profiles; • Support greater understanding, overcome barriers and reduce costs of biogas treatment and scrubbing to reduce costs and improve project viability; or • Demonstrate and develop alternative algae wastewater treatment processes or biofuel production at wastewater treatment facilities that improve bioenergy potential.

Reasoning The wastewater sector is the most significant user of energy in urban water supply, as well as also being present within the agricultural sector for consolidated livestock agriculture. As more stringent discharge regulations come into play, and larger numbers of people are served by wastewater treatment plants, the amount of energy required will increase. The UN estimates (excluding pumping) that 0.62-0.87 KWh/m3 is required for wastewater treatment (UNESCO 2014) and it is estimated OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR that electricity costs account for some 40% of all operational costs in wastewater treatment plants (UNESCO 2015).

An emerging technology is the use of algal biomass within the wastewater treatment process. This algae captures carbon dioxide, releases oxygen, and produces biomass which may be converted into biodiesel. It can also reduce nitrogen and phosphate in the final waste stream (Bhatt et al 2014).

In Australia renewable energy is commonly sourced from biogas produced from the anaerobic digestion of wastewater sludge. Approximately 55% of Australia’s wastewater treatment plants are capturing biogas and generating bioenergy (S Cook et al 2012, K Simmonds & J Kabouris 2012), and there is an opportunity for the increased use of biogas as renewable energy for existing and new wastewater treatment facilities.

The opportunity to realise additional biogas renewable energy opportunities may be supported by overcoming barriers to uptake which can include inadequate biogas production, insufficient value of offset of electricity due to existing electricity tariff rates and the cost as well as uncertainty of biogas composition and treatment. Opportunities to overcome these barriers (able to be influenced by ARENA) may lie in co-digestion to increase biogas production, as well as biogas storage to allow

EXECUTIVE SUMMARY flexibility to offset higher peak electricity tariffs. Such measures may also improve the viability of small-scale biogas facilities which may not prove viable due to low biogas resource availability.

iii and leadtoincreased useofthistechnology. technologies isexpectedtoimprove theviabilityofmany renewable energypumping technologies, of intermittentrenewables, includingsolarPVandsmall-scale wind.Theuseofimproved storage opportunity existstointegrateirrigationandwaterpumping practiceswiththegenerationprofile also timingofirrigationpracticestobothmaximisecrop yieldandminimiseevaporative losses.An applications, includingdictatedtimesofwaterpumpingthrough waterlicensing requirements and The irrigationsectorhasmanyconstraintswhichreduce flexibilityinthetimingofwater pumping significant opportunityparticularlywithintheseapplicationsthatARENAisabletoinfluence. applications. Theuseofstoragetechnologiestoallowgreater useofrenewables represents a of gridwaterpumpingapplicationsaswellintermittentand/or strong seasonalityof pumping The watersector, andinparticularagriculture, hasasignificant proportion ofoff-grid andfringe overcoming theintermittencyandinfrequency ofirrigationpractices. renewables. Thebenefitofstoragetechnologiesandapplicationswasviewedasimportant in through thestakeholdersurveys andworkshops,particularlyintermsoftheirintegrationwith Energy storagetechnologiesandpracticeswere ratedashavinghighpotentialandvalue storage technologies. penetration through these andothersimilarpractices,asopposedtotheuseofmore expensive storages. Goodopportunityliesintheuseofthesepracticestoallowforincreased renewable energy activities totakeadvantageoflowercostoff-peak electricityforpumping,toreplenish highlevel sector hasauniqueabilitytousewaterasstoragemediumchangethetimingofpumping ability toshift loadsfordemand managementforvariableelectricitytariffs. Additionally, thewater disruption (MckinseyGlobalInstitute2013).Thewatersectorhasdemonstratedflexibilityinthe as oneofthetop12disruptivetechnologiesthathavepotentialtodriveeconomicimpactand their abilitytomanagefrequency variationsandhandlepeakloads.Newstoragesystemsare rated Advanced batterystoragesystemswillhelpwiththeintegrationofsolarandwindpowerthrough Reasoning renewable energyuseinwaterpumpingapplications. Improved useofenergystoragetechnologiesandpracticestoincrease & DEMANDMANAGEMENT STORAGE TECHNOLOGIES • • • applications. Thismayincludeactivitiesthat: technologies andpracticestoimprove theuseofrenewable energyinwaterpumping Focus isonsupportingincreased utilisationanddevelopmentofenergystorage energy generationprofiles. allow renewable energypumping technologiestopumpattimescoincidingwithrenewable Overcome barriersthatrestrict intermittency issueswithrenewable energy pumpingtechnologies;or Demonstrate thebenefitsandmeansbywhich activities thatapply Address barrierstohigherpenetrationofrenewables through pilotsanddemonstration storage inoff-grid andfringe-of-gridwaterpumpingapplications; flexibility oftimingwaterpumpingpractices pumped waterstorage

can overcome so asto

iv OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR EXECUTIVE SUMMARY WATER SPECIFIC TECHNOLOGIES

Renewable energy technologies, or applications of technologies and/or processes, for water pumping and irrigation applications.

Focus is on understanding and supporting renewable energy technologies which have distinct advantages or opportunities specifically within the water sector due to its unique characteristics and water presence.

This may include activities for the following selected renewable energy technologies:

Mini-Hydro • Overcome barriers to greater deployment of renewable mini-hydro opportunities, in particular for new infrastructure and water distribution and irrigation water supply; Floating Solar PV • Overcome barriers and provide greater understanding for floating solar technologies, including the quantification of incidental benefits such as improved solar performance, reduced algal growth and evaporation reduction as well as assessment of the potential scale and applicability of the technology within Australia; or Small-Scale Desalination • Identify the potential for use of emerging renewable energy technologies for small scale desalination plants or alternative water production for drought resistance. Applications may include technologies such as wave, tidal, ocean, solar thermal and geothermal.

Reasoning There is evidence that the water-energy nexus is shifting internationally and an opportunity exists

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR to shift this nexus in Australia by determining ways that the sector specific advantages of the water market is able to use water to produce or improve renewable energy production, as well as integrate renewable energy directly into its operations.

Specifically both mini-hydro and floating solar represent two technologies capable of using water for improved renewable energy production, mini-hydro by generating electricity from water, and floating solar by being able to reduce evaporative water losses whilst simultaneously improving electricity generation efficiency from solar PV panels.

Internationally there are a growing number of examples of floating solar installations, and there is broader interest in the wider water sector benefits of the technology, whilst also highlighting that limited experience and knowledge exists for evaluating new installations.

For remote areas, or those affected by drought or poor quality groundwater, the integration of renewable energy technologies for small-scale desalination may be useful to offset the energy costs associated with these typically high energy use applications. EXECUTIVE SUMMARY

v vi OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR EXECUTIVE SUMMARY CONTENTS

PREAMBLE 01

1. INTRODUCTION 02 1.1. ENERGY AND WATER: A COMPLEX NEXUS 02 1.2. ABOUT ARENA 03 1.3. ARENA IN THE AUSTRALIAN WATER SECTOR 04

2. INVESTIGATION METHODOLOGY 06 2.1. OVERVIEW 06 2.2. PRIORITY SETTING HYPOTHESES 06 2.3. LITERATURE REVIEW AND DESKTOP STUDY 06 2.4. STAKEHOLDER ENGAGEMENT 07 2.5. ANALYSIS AND REVIEW: MULTI-CRITERIA ANALYSIS 08 2.6. REPORTING AND TESTING 08

3. KEY FINDINGS & OUTCOMES 10

3.1. LITERATURE REVIEW 10 3.2. STAKEHOLDER ENGAGEMENT 11 3.3. MULTI-CRITERIA ANALYSIS 16

4. PRIORITY AREAS 18

5. GLOSSARY 21

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 6. BIBLIOGRAPHY 22

APPENDICES 27 APPENDIX A – PRIORITY SETTING PROCESS 29 APPENDIX B1 – INTERNATIONAL WATER MARKET LITERATURE REVIEW 32 APPENDIX B2 – AUSTRALIAN WATER MARKET LITERATURE REVIEW 42 APPENDIX B3 – AUSTRALIAN WATER MARKET RENEWABLE ENERGY PROJECTS 56 APPENDIX B4 – INTERNATIONAL WATER MARKET GAP ANALYSIS 60 APPENDIX C – STAEHOLDER ENGAGEMENT PROCESS 68 APPENDIX D – RENEWABLE ENERGY OPPORTUNITIES MULTI-CRITERIA ANALYSIS 84 CONTENTS

vii CONTACT DETAILS Australia. the study,includingparticipatingorganisationsasmembers oftheAWA, WSAA,NationalIrrigatorsCouncil andIrrigation We wouldalsoliketoacknowledgethestakeholderswhoparticipatedinsurveyand provided valuableinputthroughout engagement sessions,whichfocusonthecurrent stateof This report alsocontainstheresults ofmultiple stakeholder of watersectorrenewable uptake. water sectorandidentifies trends, bothlocally andglobally, renewable energypenetrationwithinmajorareas of the Australian watersector. Thisreport detailstheextentof funding tosupportgrowth ofrenewable energy inthe Energy Agency(ARENA)toidentify priorityareas for ARENA This report wascommissionedbytheAustralianRenewable PREAMBLE www.beca.com.au Email: [email protected] Phone: +61282164615 Renewables Lead Engineer–Energy& Wayne Goodwin BECA Cotton Australia Coliban Water City West Water Brookglen Farms Barwon Water Australian Water Association(AWA) Australian RenewableEnergyAgency(ARENA) Irrigation Australia Icon Water Hunter Water Corporation GWM Water Gosford CityCouncil East GippslandWater Department ofEnvironment, Land, Water &Planning Degremont Australia(Suez) Email: [email protected] Phone: +61262437054 information Project andprogramme ARENA engagement process: who havetakenanactiverole inourstakeholder We wouldliketoacknowledgethefollowingorganisations, compatible withARENA’s legislatedobjectives. were distilledtoasmallnumberofpriorityareas which are In collaborationwithARENA,thesepotentialgrowth areas potential growth areas forrenewable energyinthesector. renewable energyinthesector, aswellananalysisof Pioneer Valley Water NSW Farmer’s Association National IrrigatorsCouncil WaterMelbourne Yarra Valley Water Water ServicesAssociationofAustralia(WSAA) Water NSW TasWater Sydney Water Corporation RuralWaterSouthern South AustraliaFarmersFederation Si CleanEnergy SA Water RMIT University Power andWater Corporation www.arena.gov.au Email: [email protected] Phone: +61262437773 General enquiries Energy Water

01 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PREAMBLE 1 INTRODUCTION

1.1 ENERGY AND WATER: A COMPLEX NEXUS

The energy and water nexus describes the complex As a vital component of the Australian economy and interdependent relationship of energy and water systems. The livelihood, the water sector plays an important role in supply, treatment and distribution of water has a significant providing water supply and treatment to residential, energy footprint. Conversely, energy production requires a commercial, industrial and agricultural sectors. Because significant consumption of water, giving rise to a growing of the significant energy use within this sector, and the international focus on water-energy nexus which is a term for clear advantages and unique characteristics of this sector, the relationship between these two important utilities. significant opportunities exist for renewable energy.

The challenges which are faced globally in the efforts to provide increasing amounts of water and energy to meet our growing needs are not isolated, and our climate and country specific conditions means that the interdependence of energy and water has its own unique challenges and opportunities in Australia.

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR WATER ENERGY

Figure 1 – The water-energy nexus with interdependence of water and energy 1 INTRODUCTION

02 renewable energyinAustralia. increase thesupplyandimprove thecompetitivenessof and knowledgesharingpriorityareas whichmayhelpto investigate theopportunityforwatersectorspecific funding of renewable energywithinAustralia,ARENAhaschosento represents forincreasing theuseofandreducing thecost In recognising theexcellentpotentialthatwatersector Figure 2– ARENA fundingthroughthedevelopmentchain 2030-40. the intenttoprovide competitiveenergysolutionsupto ARENA’s timeframefordeliveringitsobjectivesis2022,with • • ARENA hastwolegislatedobjectives,outlinedasfollows,to: the AustralianRenewableEnergyAgencyAct2011. commercially orientedagencyestablishedon1July2012by ARENA istheAustralianRenewableEnergyAgency,a 1.2 increase thesupplyofrenewable energyinAustralia. technologies improve thecompetitivenessofrenewable energy ABOUT ARENA development chainisshowninthediagrambelow. Australia. Anoverviewofwhere ARENAinvestsinthe development anddeploymentofrenewable energywithin pre-commercial activitiesinorder tohelpcatalysethe provides fundingandknowledgesharinggenerallyto activities. Asapartofthisapproach toinvestment,ARENA laboratory, tolarge-scalepre-commercial deployment activities alongtheinnovationchainfrom research inthe ARENA takesaportfolioapproach toinvestments,supporting improve businessmodelsorreduce overallindustrycosts. renewable energytechnologiestowards commercial readiness, 2022. ARENAfundsactivitiesthatare expectedtoadvance $2.5 billioninfunding,whichislegislatedandextendsuntil In order toachieveitsobjectives,ARENAhasapproximately ARENA priorityareas withintheAustralianwatersector. broadly consistsofthefollowingactivitiestoinform basis ofthisprocess isasoutlinedwithinthisreport and for prioritisingfundingrenewable energyprojects. The engagement inorder toprovide alogicalandinformedbasis undertake aprocess ofinvestigationandbroad stakeholder Australian watersector, ARENAhascommissionedBecato In order toidentify specific priorityandfocusareas withinthe

03 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 1 INTRODUCTION 1.3 ARENA IN THE AUSTRALIAN wind) is typically independent of water sector processes WATER SECTOR and applications, and no specific advantages are attained through using the technology within the water sector Renewable energy use within the water sector can be specifically, outside of those advantages which are common categorised as water sector specific, or as general renewable to a number of different sectors. energy technologies. Water specific technologies include those renewable energy technologies for which the fuel The ARENA priority setting process is used to prioritise grant source or application is related to the water sector and/or funding and knowledge sharing activities that reflect ARENA’s unique advantages are obtained by using the technology legislated objectives to increase the use of and decrease specifically within water sector. General renewable energy the cost of renewable energy within Australia. Significant technologies are those where the water sector and is opportunity exists for ARENA to influence renewable energy generally equally viable across a range of sub-sectors and use and development within the water sector, by not only applications, and the generation of the renewable energy using renewable technologies to offset non-renewable energy itself has no specific advantages due to the characteristics of sources, but also by exploiting the unique characteristics and the water sector or it’s processes. These two categories are inherent energy available in water processing activities in summarised as follows: order to generate renewable energy directly.

• Water sector specific renewables includes technologies such This report outlines those priority areas within the water as hydro, biogas, pumped water storage or floating solar sector which are believed to demonstrate the best technologies which may offer advantages to the water opportunity for ARENA to have an influence in improving the sector where existing water bodies are already present. cost competitiveness and increasing the use of renewable energy supply within the Australian water sector. • General renewable technologies are where the renewable energy resource, or energy profile, (for example, solar and OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 1 INTRODUCTION

Figure 3 – The ARENA funded Perth Wave Energy Project by Carnegie Wave Energy Limited has ability to produce desalinated water supply from renewable ocean energy

04 13 years. within recoverable this being with maintenanceand costs $18.3was including USD million 25 of operational years year. each plant of the cost The of electricity kWh million to 16.2 produce is forecast and canal Narmada of the km 2014. in November generating plant3.6 10MW spans The of Vadodara begun and city the near constructed plant a10MW was success, projects pilot the Upon $2.8 approximately was USD. million project pilot of the cost capital the by Sun India, Edison Commissioned of canal. water annually litres 9 million the from of approximately evaporation prevent and the electricity 1.6 to generate of is projected kWh and million canal 1MW Narmada The of a750 the stretch plant covers meter 2012. in April commissioned district, Mehsana in the a1MW plant project, initial pilot its of Gujarat with India, state in the launched was project PV solar canal-top The Description STATUS: COMPLETEPROJECT PV CANAL-TOP SOLAR TYPE: PROJECT (SSNNL) LIMITED NIGAM SAROVAR NARMADA SARDAR (GSECL) AND OWNER: INDIA PV TOP SOLAR CANAL STUDYCASE 1 state grid while meeting the demand of local irrigation pumping stations. GUJARAT STATE ELECTRICITY CORPORATION CORPORATION STATE GUJARAT ELECTRICITY Both canal-top to solar generate the electricity PV projects and export

are: installations PV solar canal-top of implementing challenges The Challenges are: PV installations solar canal-top of keyThe benefits Key benefits I savings in resulting water evaporation canal Reduced e Installation security and protection from vandalism from protection and security Installation areas installation long over and environments maintenance and cleaning Panel in dusty orientation canal with angles panel optimum Attaining canal to the required span structures array support to due additional cost capital Increased ground-mounted to compared when of acquisitions land cost Reduced n ffect c reased solarPVpanelefficiencyduetothe of being p o s sitioned overabodyofwater olar P V

i ns tallations

w cooling ater

05 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 1 INTRODUCTION 2 INVESTIGATION METHODOLOGY

2.1 OVERVIEW 2.3 LITERATURE REVIEW AND DESKTOP STUDY In order to help ARENA determine investment priority areas within the Australian water sector, the following investigation 2.3.1 International Water Sector Literature approach was used : Review • Understanding energy use within the water sector, including A literature review of the international water sector was current renewable energy use undertaken in order to understand current market trends and practices as they may be relevant to the Australian water sector. • Identifying and understanding barriers and opportunities for improved renewable energy use The predominant aim of the international literature review was to provide a comparison to the Australian market in order to • Testing, analysing and evaluating the potential for ARENA understand any emerging areas which may influence or present to influence the identified renewable energy opportunities. opportunities for renewable energy use locally. With this investigation approach, a methodology was As a part of this study, a wide range of information sources employed to evaluate the renewable energy potential based were reviewed and there was engagement with international upon the following key activities: water sector stakeholders who have demonstrated significant • Literature review and desktop study of the international progress in the use of renewable energy in the water sector, and Australian water sectors for development of initial such as the Sonoma County Water Agency. The process, hypotheses for renewable energy opportunity priority areas results and findings of the international water sector literature review are provided in Appendix B1 - International • Broad stakeholder engagement for input, analysis and Water Market Literature Review. review of priority areas • Multi-criteria analysis for evaluation of opportunities and 2.3.2 Australian Literature Review ARENA’s ability to influence and overcome barriers to A literature review of the Australian water sector was improve renewable energy use within the Australian undertaken in order to baseline the current energy trends water sector. within the sector and to understand the current level of An overview of specific activities undertaken during the development of renewable energy use. The review also course of the study is outlined in this section with a graphical focused on future energy use, as well as identifying those representation of the process in Figure 5. opportunities which show good potential for improved use of renewable energy. . As a part of this study, a wide range 2.2 PRIORITY SETTING HYPOTHESES of information sources were reviewed, including a review of OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Based upon existing industry information and the preliminary existing ARENA project opportunities. findings of the initial literature review, a priority areas The process, results and findings of the Australian water hypothesis was formulated to help guide the investigations sector literature review is provided in Appendix B2 - and stakeholder engagement process. The initial hypothesis Australian Water Market Literature Review. areas developed were intentionally broad in nature and covering a wide range of both technologies and applications, As well as a part of the Australian water sector literature so as to provide a large base to test during the stakeholder review, an analysis and review of current renewable energy engagement process. These initial hypotheses were tested projects within the sector was undertaken in order to identify during the course of this study, to help develop and those projects which are currently implemented, as well as to determine the recommended priority areas, based upon gain an understanding of those projects which are currently evidence and information gathered and analysed. being planned or investigated, in order to understand where new project opportunities and technologies may exist. An overview of the general process for determining suggested ARENA priority areas within the Australian water sector, as 2 INVESTIGATION METHODOLOGY An overview of the current status and project opportunities well as an overview of the initial priority areas hypotheses is for renewable energy projects in the Australian water sector included in Appendix A – Priority Setting Process. is provided in Appendix B3 - Australian Water Market Renewable Energy Projects.

06 Figure 4-Workshop participantsundertake exercisesattheSydneyworkshop • • the consultationperiod: a focusonachievingthefollowingprimarygoalsthroughout The stakeholderengagementprocess wasundertakenwith priority areas forrenewable energyusewithinthesector. the project inorder tohelpunderstand,identify andverify engagement processes were undertakenatvariousstagesof In parallelwiththeliterature review, broad stakeholder 2.4 Analysis. provided in An overviewofthegapanalysismethodologyandfindingsis energy usewithintheAustralianwatersector. technology maturityandhaveanimpactonrenewable technologies whichrepresent agoodopportunityto improve analysis process aimedtopresent abroad overviewofthose particular technologyspecifically withinthewatersector. The (CRI), tohelpcommunicatethelevelofmaturity and theARENAdevelopedCommercial ReadinessIndex benchmarking toolofTechnology ReadinessLevel(TRL) consolidated ratingscaleofboththegloballyaccepted The gapanalysiswascompletedusingamodified and sector literature reviews. andAustralianwater upon thefindingsofinternational watersector,between theAustralianandinternational based to compare thelevelofrenewable energydevelopment experienceagapanalysiswasundertaken the international In order tounderstandthedifferences andrelevance of 2.3.3 and activities Understand renewable energy project investigations Identify current energyuseandpractices STAKEHOLDER ENGAGEMENT WaterInternational MarketGapAnalysis Appendix B4–InternationalWater MarketGap

• • • processes: process consistedofthefollowingkeyactivitiesand In order toachievethesegoals,thestakeholderengagement • • • • • • Stakeholder EngagementProcess. activities, findingsand results isasoutlinedin A detailedoverviewofthestakeholderengagementprocess, effectively engagewiththeir membershipbase. of stakeholders,industrybodieswere alsoconsultedasto to maximisethereach and engagementwithabroad range water sub-sectors,businesstypesandbackgrounds. Inorder range ofstakeholderswere consultedfrom awiderangeof Throughout thestakeholder engagementprocess, abroad • • Stakeholder interviews workshops andwebinars Stakeholder engagementandknowledgesharing Online surveys Australian watersector. Achieve greater engagementbetweenARENAandthe hypothesised ARENApriorityareas Help determinewatersectorstakeholderviewson knowledge onenergyandrenewables projects Bring togetherwatersectorstakeholderstoshare Gain furtherdetailedinformationandinsights cooperation Determine thelevelofindustryparticipationand energy use Understand barriersandopportunitiestorenewable Stakeholder draftreport feedback andconsultation. assessment process Stakeholder inclusionphaseinthemulti-criteria Appendix C–

07 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 2 INVESTIGATION METHODOLOGY 2.5 ANALYSIS AND REVIEW: A detailed overview of the methodology, results and analysis MULTI-CRITERIA ANALYSIS of the multi-criteria assessment is provided in Appendix D – Renewable Energy Opportunities Multi-Criteria Analysis. In order to analyse and evaluate the potential for different renewable energy opportunities, a multi-criteria analysis 2.6 REPORTING AND TESTING (MCA) was undertaken based on performance criteria which were selected and weighted based upon the evaluation Based upon the process undertaken as a part of this study, criteria used to develop ARENA’s investment planning. an analysis was undertaken to determine those draft priority areas which are proposed for the purposes of establishing The initial phase of the MCA was undertaken internally a general framework for communication with the market, within Beca and ARENA, with the intent to determine the assessment of project applications and the development of analysis criteria and to perform an independent evaluation knowledge sharing plans and activities. of the various renewable energy opportunities with respect to ARENA’s stated goals and objectives. The process was The draft priority areas were then reviewed by both then repeated with selected water sector stakeholders in ARENA and selected participating stakeholders engaged order to independently assess the outcomes and allow for throughout the study in order to help ARENA identify industry input and participation in the overall process. priority areas which represent the best potential to benefit from ARENA investment in both funding and knowledge The outcomes of the multi-criteria analysis were then sharing activities. reviewed in the context of the information gathered from the literature reviews and stakeholder engagement stages in order to help formulate the priority areas for renewable energy in the Australian water sector. OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 2 INVESTIGATION METHODOLOGY

Figure 5 – Flowchart of overall investigation methodology

08 requirements. requirements. energy for community council other and exported power excess with facility water treatment entire waste the to power is expected it are completed stages proposed all once and facility water treatment councils waste the near water sewerage on plant floats audience. The to and Australian international an within technology the of capabilities the to demonstrate plant is used 4MW 2015, in April greater the of Industries stage first the by Infratech Australia. Commissioned South Jamestown, in located is PV installation solar Australia’sfloating first utility. power to local USD the of $780,000 cost at year a each grid into local the of electricity 2,680MWh approximately of delivering plant is capable 2.3MW the by KyoceraCommissioned TCL 2015, LLC in June Solar of Japan. Prefecture Hyogo in the is installed installation PV solar floating single world’s the largest Presently Description (AUSTRALIA) STATUS: (JAPAN), ON-GOING COMPLETE PROJECT PV FLOATING SOLAR TYPE: PROJECT (AUSTRALIA) COUNCIL AREAS NORTHERN OWNER: FLOATING JAPAN PV SOLAR AUSTRALIA AND STUDYCASE 2 KYOCERA TCL SOLAR LLC (JAPAN) / LLC (JAPAN) TCL KYOCERA SOLAR Capable of delivering approximately 2,680MWh

of electricity intoof electricity the local grid year each

are: installations PV solar floating of implementing challenges The Challenges are: PV installations solar floating of keyThe benefits Key benefits

Maintaining of optimum orientation on water surfaces on orientation of optimum Maintaining issues safety maintenance and cleaning Panel including associated panels on measures waterproofing incorporating and barges frame support to due constructing cost capital Increased installations PV solar ground-mounted to compared when of acquisitions land cost Reduced to due shading effects growth algal of unwanted reduction and water evaporation Reduced performance derating heat to improve panel used systems due to cooling efficiency panel PV solar Increased

09 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 2 INVESTIGATION METHODOLOGY 3 KEY FINDINGS & OUTCOMES

The following section outlines the key findings from each as a gap analysis performed, in order to understand where stage of the investigation which were identified and good potential exists for the increased use of renewable considered in determining the overall priority areas for the energy within the Australian water sector. study. Full details of the results and findings of the international and Full details of all findings and results from each stage of the Australian water sector literature reviews can be found in the study are outlined in Appendix B, Appendix C and Appendix D. following appendices:

3.1 LITERATURE REVIEW • Appendix B1 - International Water Market Literature Review The following table outlines some of the key points and • Appendix B2 – Australian Water Market Literature Review trends that were identified specifically in relation to the use • Appendix B3 - Australian Water Market Renewable Energy of renewable energy within each of the water sub-sectors Projects reviewed for both the international and Australian water sectors. The key trends and information was analysed as well • Appendix B4 – International Water Market Gap Analysis.

Table 1 – Summary of literature review key findings

WATER SUB-SECTOR INTERNATIONAL AUSTRALIA

Raw Water • Significant large-scale • Most large-scale hydroelectric power opportunities hydroelectric power facilities realised with limited opportunities existing for new large- scale hydro • Growing trend in use of floating solar PV • Existing hydroelectric generation heavily dependent upon rainfall and significantly affected during periods of drought • Growing interest in floating solar PV technology, including pilot scale deployment

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Desalination • Growing development of direct • Limited expected medium term development of large- solar PV power large-scale scale desalination facilities desalination facilities • Existing desalination facilities energy use is largely offset • Growing interest in direct thermal with GreenPower and other grid supplied renewable desalination including solar energy sources thermal and geothermal • Growing potential for small-scale desalination facilities for • Approximately 1% of global alternative water sources for farming practices desalination supplied by renewable energy sources

Water Distribution • Growing use of small-scale hydro • Growing use of small-scale hydro for energy recovery for energy recovery

Wastewater • Wide use of biogas facilities with • Approximately 34 MW of biogas electricity generation many facilities becoming net facilities at urban wastewater treatment plants 3 KEY FINDINGS & OUTCOMES energy neutral or even positive • Growing research and interest in algae as an alternative • Growing use of biogas as a wastewater treatment process transport and pipeline gas fuel • Growing interest in co-digestion as a means to boost • Growing use of latent heat in biogas production, particularly for small wastewater sewage systems for building facilities heating

10 from thetwo primarywatersub-sectorsbeing bothurban investigation was primarilycarriedoutbyanalysing theresults Analysis forthe stakeholderengagementstage ofthe currently underinvestigation,planningordevelopment. perspective inrelation toidentifying thoseprojects whichare technical perspectiveandalso from aproject development of keytrends andfindingsfrom botha renewable energy The stakeholderengagement stage identified anumber 3.2 Table 1(cont.)–Summaryofliteraturereviewkeyfindings Figure 6–Hydroelectricpowersuppliesthemajorityof renewable energyinternationallyandin Australia Agriculture Irrigation & Water Recycling STAKEHOLDER ENGAGEMENT • • • crop wasteasfeedstock resource through utilisationof Growing useofbioenergy technologies inoff-grid areas use ofremote renewable pumping Significant potentialforincreased methods watertreatmentand alternative Increasing useofwaterrecycling Engagement Process. and results are provided in Full detailsofthestakeholder engagement process, findings ensure thatthesewere properly understoodand investigated. factors andchallengesaffecting eachsub-sector, soasto was undertakeninconsideration ofthedifferent specific water andagriculture &irrigation.Thisseparationofanalysis • • • • • generation facilitiesinbothNSWandQLD Significant existinguseofbagassefired biomasspower of gridlocationsforwaterpumpingactivities High costofelectricityand/ordieselforoff-grid andfringe upon crop andlivestockfarmingpractices Strongly seasonalwaterusagetrends aprofiles depending Largest consumeroffreshwater inAustralia opportunities forrenewable energy water treatment process, butwithlimitedexpected Increasing useofwaterrecycling asanalternative Appendix C–Stakeholder

11 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 3 KEY FINDINGS & OUTCOMES 3.2.1 Renewable Energy Technologies The below table represents the key findings and results from the stakeholder engagement process for each main sub-sector as it relates to the different types of renewable energy technologies.

Table 2 – Summary of stakeholder engagement key findings and outcomes

RENEWABLE ENERGY URBAN WATER AGRICULTURE & IRRIGATION

Solar PV High interest in solar PV technology, with High interest in conventional solar PV technology, a significant uptake in conventional solar however with a much lower installation rate PV applications including rooftop and compared to the urban water sector. Typically the cost ground mount. of electricity is higher for the agricultural sector than that of the urban water sector, and hence reduced There is a significant interest in floating uptake is likely to be for reasons other than lower solar applications, however with very return on investment. limited uptake aside from one installation in Jamestown, SA. Stakeholder feedback There is limited interest in both floating solar suggests that little information is known applications and solar/diesel hybrids, with the vast about the technical performance and majority of respondents never considering these benefits of floating solar making feasibility technologies. Lower interest is expected to be assessment challenging. primarily due to lack of knowledge of technology as well as lower applicability due to no presence Limited interest in solar/diesel hybrid likely of existing infrastructure such as dams or diesel due to good access to electricity grid. generating sets for many respondents.

Bioenergy High interest in biogas with a high uptake Low interest in bioenergy technologies with no in applications including cogeneration and responded examples of use of bioenergy from survey direct heating. respondents.

Applications of co-digestion and biogas Vast majority of respondents have not considered storage show lower uptakes and bioenergy applications, likely due to reasons of the consideration and may represent good lack of a bioenergy resource and knowledge of the opportunities to increase viability of biogas technology. embedded power generation on sites where feasibility of the project is reduced Agricultural interest in bioenergy is predominantly

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR due to low biogas production. limited to waste streams associated with high density livestock or consolidated crop wastes. Despite moderate interest in biofuel and algal technologies, uptake is still low and primarily limited to research and trials as this technology is not yet commercially demonstrated at large scale.

Hydro High interest and moderate uptake in Low interest in hydro opportunities with majority of small-scale hydro. Highest interest in respondents indicating that the technology is not in-conduit hydro correlating with lowest applicable to their business. uptake suggesting that this is an emerging area of interest to water utilities. Low uptake of hydro applications, limited primarily to large scale irrigation authorities for irrigation Low interest in larger scale hydro (>1MW) distribution.

3 KEY FINDINGS & OUTCOMES suggesting that fewer larger hydro opportunities exist within the market with most already being realised.

Wind High interest in small-scale wind but with Low interest in electricity generating wind very low uptake with cost, regulatory technologies overall. Moderate uptake of direct and performance barriers noted as main windmill applications for pumping. Technical/ reasons. performance issues noted as primary barrier, suggesting that challenges may lie with technology Low interest in large-scale and wind/diesel knowledge and also intermittency of supply. hybrid technologies. 12 PV technologies from Australian waterutilities. Figure 7–Floating solarPVinstallationatJamestown wastewatertreatment plant.Thereisgrowinginterest infloatingsolar Table 2(cont.)–Summaryofstakeholderengagementkeyfindingsandoutcomes Storage Biomass Geothermal/Ocean/ RENEWABLE ENERGY biogas andpumpedhydro storage. and moderateperceived benefit ofboth High perceived benefitof battery storage sector. significant opportunitiestothewater All technologiesnotexpectedtopresent ocean andbiomassenergytechnologies. Low interest andactivityingeothermal, URBAN WATER moderate perceived benefit ofpumpedhydro storage. High perceived benefitof battery storageand little interest oractivityinthisarea. agricultural sector, howeverrespondents indicated energy crops maypresent somepotentialtothe Availability ofbiomassfrom crop wasteanduseof present significant opportunitiestothewatersector. Geothermal andoceantechnologiesnotexpectedto biomass energytechnologies. Low interest andactivityingeothermal,ocean AGRICULTURE &IRRIGATION seasonal inapplication. infrequency ofmanyirrigation applicationswhichare as importantinovercoming intermittencyand Benefit ofstoragetechnologies/applicationsviewed

13 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 3 KEY FINDINGS & OUTCOMES 3.2.2 Renewable Energy Projects The following word cloud provides a graphical representation of the prominence of words provided by stakeholders in relation renewable energy projects currently being investigated, planned or under development. The word cloud gives greater prominence to words which occurred more frequently from stakeholders so as to provide some insight into current renewable energy projects and ambitions.

Figure 8 – Word cloud of current Australian water sector renewable energy project opportunities OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 3 KEY FINDINGS & OUTCOMES

14 potentially be on-sold as a low cost farming fertiliser. cost alow as on-sold be potentially can nutrients possesses remaining digestate inorganic The to grid. the exported being electricity any excess with facility plant water recycling and treatment sewerage adjacent the power and facility to energy waste the heat (CHP) to power and heat used to combined produce agenerator that drives engine to acombustion fuel used be will biogas The digestate. and to biogas produce sludge sewerage with along co-digested be will waste organic The for landfill. destined otherwise facilities processing and day trucked in waste from every waste of organic 100m³ process average on will facility to energy waste The grid. electricity local the on dependency reduced and usage energy renewable to pursue authority water for the project pilot the be will and of Melbourne, north plant in Wollert, treatment Aurora sewerage existing of the boundary the built within is to be facility energy to waste The production. biogas for increased digestion plant utilising co- waste-to-energy viable a commercially Yarra Valley commission and Water intends to construct Description CONSTRUCTION STATUS: NEARING PROJECT CO-DIGESTION TYPE: PROJECT OWNER: WASTE FOR TOCO-DIGESTION ENERGY AUSTRALIA STUDYCASE 3 YARRA VALLEY WATER VALLEY YARRA The biogas will used be to fuel acombustion engine that drives a generator heat combined to produce and power

are: installation biogas with aco-digestion of implementing challenges The Challenges are: installation plant biogas with of a co-digestion keyThe benefits Key benefits

Compliance with local council and environmental permits council environmental and Compliance local with chemistry and performance digester Changed anaerobic segregation waste and sources external from waste in organic to transport Need procedures treatment Biogas revenue to generate grid the into back electricity to export opportunity Realistic gatethrough fees stream revenue potential additional and third-parties from in up landfill ending wastes organic Reduced grid the from imported electricity fuelled fossil on dependency Reduced viability project rates improving production biogas Improved

15 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 3 KEY FINDINGS & OUTCOMES 3.3 MULTI-CRITERIA ANALYSIS As an outcome of the multi-criteria analysis, the aggregated ranking scores were divided into seven overall performance The multi-criteria analysis process evaluated a wide range potential scores: “Very Low”, “Low”, “Low/Medium”, of renewable energy technologies and processes in order “Medium”, “Medium/High”, “High” and “Very High” to to identify those opportunities which represent the best help identify which of those opportunities were believed to potential to the Australian water sector. In undertaking this represent the highest value. The results of the multi-criteria process, renewable energy opportunities were ranked as analysis were further assessed for those opportunities either ‘High’, ‘Medium/High’, ‘Medium’, ‘Medium/Low’ or rated as medium/high or greater, and evaluated as to Low. The multi-criteria analysis was conducted with three their potential based upon the trends and current status main stakeholder groups including an ‘in-house’ assessment determined from the literature review and information conducted collaboratively between Beca and ARENA, and gathered from the stakeholder engagement stage. two external stakeholder groups including representatives from both the urban water sector and the agriculture and A summary of performance criteria and weighting used irrigation sector. to evaluate each renewable energy opportunities is provided below.

Table 3 – Overview of performance criteria used for the multi-criteria analysis

PERFORMANCE CRITERIA BREAKDOWN CRITERIA WEIGHTING CRITERIA Likely Scale by 2030-40 • Technical Potential 22.5% • Market Potential • Degree of risk for path to competitiveness • Impacts of barriers to uptake

Potential for Growth • Potential for cost competitiveness to lead to higher uptake 22.5% • Level of knowledge and experience to address barriers • Ability for advances in knowledge to increase competitiveness and increase penetration ARENA Investment • Ability for ARENA to improve outcomes in this area 22.5% Influence OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Fit with ARENA • Is potential influence already addressed in current portfolio? 22.5% Portfolio

Other For Example:

• Secondary benefits • Current level of commercial development

In summarising the outcomes of the multi-criteria analysis for • Renewable pumping those opportunities ranked ‘high’ and also categorising those • Bioenergy in wastewater opportunities which are ranked medium/high, it becomes evident that the highest ranked opportunities generally fall • Storage/demand management into five main categories including: • Solar PV

3 KEY FINDINGS & OUTCOMES • Micro-hydro

16 An overviewofthespecific technologiesandpracticesastheyare related totheseidentified categoriesisoutlinedin Table4. Full detailsofthemulti-criteriaanalysis,findingsand results are provided in Table 4–Summaryofmulti-criteriaanalysiskeyresultsandoutcomes Micro-Hydro Solar PV Management Storage/Demand Bioenergy Renewable Pumping CATEGORYOPPORTUNITY Medium/High Medium/High Medium/High Medium/High Medium/High Medium/High Medium/High Medium/High Medium/High Medium/High Medium/High Medium/High Medium/High High High RANKING Appendix D–Multi-CriteriaAnalysis. Rooftop SolarPV Floating SolarPV Biogas Storage Demand Management Pumped Storage Battery Storage Biomass Gasification Algal Biofuel Biomethane (Pipeline) Biogas Storage Biogas Cogeneration Anaerobic Codigestion Renewable Pumping TECHNOLOGY/PRACTICE Micro-Hydro Ground MountSolarPV

17 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 3 KEY FINDINGS & OUTCOMES 4 PRIORITY AREAS

4.1.1 Determining the Priority Areas Multi-Criteria Analysis The information base obtained during the literature review, Based upon the information gathered and tested from stakeholder engagement and multi-criteria analysis stage the literature review and stakeholder engagement phases, was analysed in order to identify those opportunities which the structured multi-criteria analysis provided an analytical represent the likely best potential to benefit from ARENA means of assessing the potential renewable energy priority funding and knowledge sharing activities. areas against defined performance criteria consistent with ARENA’s investment planning process. The information In general, the investigation process used during the study gathered during the literature review stages and stakeholder allowed for the identification, testing and analysis of those engagement stages provided an evidence base and renewable energy opportunities within the water sector in understanding of the market so as to assess and determine order to provide proposed priority areas within the Australian recommended priority areas for ARENA’s consideration. water sector for ARENA’s consideration. Specifically, the Specifically, the multi-criteria analysis process used the following was considerations were taken into account when evidence base to assess opportunities against the following reviewing the outcomes of each investigation stage: criteria:

Literature Review • Likely scale of the opportunity by 2030-2040 The literature review provided insight into market • Potential for growth and renewable energy trends within the water sector • Ability for ARENA to influence investment internationally and within Australia. A comparison of international practices with those in Australia provided an • Fit within existing ARENA portfolio and existing overview of the current status of our renewable energy priority areas. development compared to the international market and Additionally, the priority areas were reviewed in the provided an insight into potential growth areas or emerging context of emerging trends and commercial readiness of practices. technologies, so as to determine those opportunities which Additionally, the literature review provided insight into will likely benefit from support as they progress through the current and historical renewable energy activity as well technology and commercial readiness levels. insight project opportunities and barriers for increased 4.1.2 Proposed Priority Areas renewable energy use. The outcomes of all stages of the investigation process are Stakeholder Engagement

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR four proposed priority areas for ARENA’s consideration for The stakeholder engagement outcomes provided an overview the Australian water sector which have been selected based of current market activities and opportunities as well as the upon the outcomes of the evidence base and multi-criteria ability to test some of the initial findings of the literature assessment carried out during the investigation. review and potential priority areas directly with the market. The four priority areas which are proposed for ARENA’s In particular, the stakeholder engagement stage provided consideration are outlined on the following page: significant insight to provide the following:

• Identification of current energy use and practices • Understanding of renewable energy project investigations and activities • Understanding of barriers and opportunities to renewable energy use • Understanding of direct stakeholder interest in potential ARENA priority areas and renewable energy opportunities to help determine the scale of the opportunity 4 PRIORITY AREAS

18 Proposed Priority Areas Proposed Executive Summary Further detailontheproposed priorityareas includingdetailsofpotentialfocusactivitiesandtechnologiesare outlinedinthe including: mini-hydro, floating solarPVand or opportunitiesspecifically withinthewatersectorduetoitsuniquecharacteristicsandpresence, Focus isonunderstandingandsupportingrenewable energytechnologieswhichhavedistinctadvantages Water Specific Renewables in waterpumpingapplications Improved useofenergystorage technologiesandpracticestoincrease renewable energyuse Storage Technologies andDemandManagement Improved utilisationandgenerationofbioenergyinwastewatertreatment applications. Bioenergy inWastewater Treatment for waterpumpingandirrigationapplications. Renewable energytechnologies,orapplicationsoftechnologiesand/orprocesses, Renewables inWater PumpingandIrrigation atthebeginningofthisreport.

small-scale renewable desalination.

19 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 4 PRIORITY AREAS CASE STUDY 4 SOLAR THERMAL FOR DESALINATION, ENERGY AND HORTICULTURE AUSTRALIA

OWNER: SUNDROP FARMS Key benefits PROJECT TYPE: HYBRID SOLAR THERMAL AND The key benefits of canal-top solar PV installations are: DESALINATION Reduced cost of land acquisitions when compared to PROJECT STATUS: UNDER CONSTRUCTION ground-mounted solar PV installations Reduced canal water evaporation resulting in water Description savings Sundrop Farms has developed a system that aims to Increased solar PV panel efficiency due to the cooling overcome the dependence on pumping fresh water and effect of being positioned over a body of water

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR importing electricity from the grid for the horticulture industry. The system currently being installed in Port Augusta, South Australia utilises a hybridisation of Challenges technologies to produce combined heat and power (CHP) The challenges of implementing canal-top solar PV and desalination. installations are: The system uses an array of mirrors to direct the suns Increased capital cost due to additional array support energy to a centralised receiver that produces steam to structures required to span the canal desalinate seawater for watering crops, drive a steam Attaining optimum panel angles with canal orientation turbine to generate electricity and provide heat to greenhouse facilities for tomato crop production. Panel cleaning and maintenance in dusty environments and over long installation areas Installation security and protection from vandalism

Aims to overcome the dependence on pumping fresh water and 4 PRIORITY AREAS importing electricity from the grid for the horticulture industry

20 5 LPG LCOE kWh kW kL GL GJ GHG FOG DC CSP CRI CKB Beca AWA ATES ARENA AER AD AC ABARE TERM GLOSSARY Alternating CurrentAlternating Resource EconomicsandSciences Australian Bureau ofAgriculturaland MEANING Liquefied Petroleum Gas Levelised CostofElectricity Kilowatt Hours Kilowatts Kilolitre Gigalitre Gigajoule Greenhouse GasEmissions Fats, OilsandGrease Direct Current Concentrated SolarPower Commercial ReadinessIndex City ofKalgoorlie-Boulder Beca ConsultantsPtyLtd Australian Water Association Aquifer ThermalEnergyStorage Australian RenewableEnergyAgency Australian EnergyRegulator Anaerobic Digestion NIC NA MW ML MCA MED TERM WWTP WSAA UV US UN TRL TML SRET REC QUU PV PMSEIC PJ ORC National Irrigator’s Council Not Available Megawatt Megalitre Multi-Criteria Analysis Multiple-effect distillation MEANING Waste Water Treatment Plant Water ServicesAssociationofAustralia Ultraviolet United States United Nations Technology ReadinessLevel Technology MaturityLevel Small-scale RenewableEnergyTarget Renewable EnergyCredit Queensland UrbanUtilities Photovoltaic Innovation Council Prime Minister’s Science,Engineeringand Petajoule Organic RankineCycle

21 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 5 GLOSSARY 6 BIBLIOGRAPHY

Abbott, M, Cohen, B & Wang, W. (2011). The performance of Caffoor, I. (2008). Energy Efficient Water & Wastewater Treatment. the urban water and wastewater sectors in Australia. Van der Vegt, H, Lliev, L, Tannock, Q & Helm, S. (2011). ABS. (2010). 4613.0 Australia’s Environment: Issues and Trends, Patent Landscape Report on Desalination Technologies and the 2007. Use of Alternative Energies for Desalination.

ABS. (2014). Australian Bureau of Statistics: Water Account Australia. Chang, Y, Reardon, DJ, Kwan, P, Boyd, G, Brant, J, Rakness, KL & Furukawa, D. (2008). Evaluation Australian Energy Regulator. (2014). State of the Energy of Dynamic Energy Consumption of Advanced Water and market 2014, AER. Retrieved 12 July 2015, from https:// Wastewater Treatment Technologies. www.aer.gov.au/sites/default/files/State%20of%20 the%20energy%20market%202014%20-%20 Christian-Smith, J & Wisland, L. (2015). Clean Energy Complete%20report%20%28A4%29_0.pdf Opportunities in California’s Water Sector.

Albers, T. (2013). Powering the Pump: Diesel Versus Electric Clark, L. (2015). Mega floating solar power plants open in Japan. Motors. Retrieved 13 July 2015, from http://www. Retrieved 13 July 2015, from http://www.wired.co.uk/ pumpsandsystems.com/topics/motors/powering- news/archive/2015-04/21/giant-floating-solar-panel- pump-diesel-versus-electric-motors plant-japan

Allen, GS, Fay, CB & Matys, E. (2013). In-Conduit Hydropower Clark, P & Pretto, P. (2014). Melbourne Water Annual Report. Project - Phase I Report. Clean Energy Council. (2012). Hydroelectricity Fact Sheet. Amarasinghe, UA & Smakhtin, V. (2014). Global Water Demand Projections: Past, Present and Future. Clean Energy Future, Australian Government. (2010). CFI Methodology: Destruction of methane from manure in Angelakis, AN & Gikas, P. (2014). Water Reuse: Overview of piggeries. Current Practices and Trends in the World with Emphasis on EU States. Cook, S, Hall, M & Gregory, A. (2012). CSIRO: Energy use in the provision and consumption of urban water in Australia: ARM, NRN North. (2009). Future Farming Fact Sheets: Farm an update. and Irrigation Energy Efficiency. Cooley, H & Wilkinson, R. (2012). Implications of Future Water Asian Development Bank. (2013). Thinking about Water Supply Sources for Energy Demands.

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Differently: Managing the Water-Food-Energy Nexus. Cooley, H, Christian-Smith, J, Gleick, PH, Allen, L, Cohen, Australian Government: Rural Industries Research and M. (2009). Understanding and Reducing the Risks of Climate Development Corporation. (2013). Biomass Producer: Change for Transboundary Waters. Bioenergy information for Australia’s primary industries. Corcoran, L, McNabola, A & Coughlan, P. (2012). Energy Australian Water Recycling Centre of Excellence. (2014). Recovery Potential of the Dublin Region Water Supply Network. Australian Water Recycling Centre of Excellence Annual Report (2013-2014). D Doepel, R Pashley, R Barnett, S Humphries & A Hall. (2012). Australian Desalination Research Roadmap. Bahadori, A, Zahedi, G & Zendehboudi, S. (2012). An overview of Australia’s hydropower energy: Status and DC Water. (2010). Biosolids Management Program. future prospects. de Gooijer, G, Lofgren, R, Grannit, J, Jagerskog, Baldock, D, Caraveli. H, Dwyer, J, Einschutz, S, Petersen, A, Aureli, A & Renck, A. (2008). Innovations in JE, Sumpsi-Vinas, J & Varela-Ortega, C. (2000). Groundwater Governance in the Mena Region. The Environmental Impacts of Irrigation in the European Union. Dreyfus, J, Smith, S, Squire, D, Mackenzie, I, Mengler, Bhatt, NC, Panwar, A, Bisht, TS, Tamata, S. (2014). T, Uern,S & Atkinson, P. (2014). Anaerobic digestion Coupling of Algal Biofuel Production with Wastewater. and power generation: the success of the co-digestion plant at Glenelg WWTP. 6 BIBLIOGRAPHY Bureau of Meteorology. (2015). Climate resilient water sources. Elimelech, M and Phillip WA. (2011). The Future of Seawater Burn, L, De Silva, D & Shipton, R. (2001). Effect of demand Desalination: Energy, Technology and the Environment. management and system operation on potable water infrastructure costs.

22 Hook, JE&Thomas, DL. Hiscock, L&Sanbrook, A. Heymann, E,Lizio,D&Siehlow,M. Harrington, N&Cook,P. Griffiths-Sattenspiel, B&Wilson, W. Green Power. Goosen, M,Mahmoudi,H&Ghaffour, N. Global Water Intelligence. Gillis, J&Richtel,M. GHD. Geoscience Australia&ABARE. Fry, A. Foran, B&Poldy,F. Fichtner. Ferroukhi, R,Nagpal,D,Lopez-Pena,A,Hodges,T, EPRI. Elliott, T, Zeier, B,Xagoraraki,I&Harrington,G. (2002). (2012). in the A.C.F. Basin. Consumption and Water Restrictionsfor Row Crop Irrigation generation optimisation-2yearslater. institutional risks. Water Markets: Highinvestmentrequirementsmixedwith Footprintof Water. LIST%20-%20updated%20March%2014.pdf Generator%20Lists/WEBSITE%20GENERATOR%20 Are-GreenPower-Generators/~/media/Files/ www.greenpower.gov.au/About-Us/Where- 2014. Water Desalination Using Geothermal Energy. rebound/ www.globalwaterintel.com/are-you-ready-desal- Desal Rebound? html?_r=1 beneath-california-crops-groundwater-crisis-grows. from http://www.nytimes.com/2015/04/06/science/ Groundwater CrisisGrows. Baseline Report. Australia’s mostimportantchallenges. Resource Assessment. Report: Applying geoscienceto and Environment: The Futureof Water. 2050 for Australia’s Population, Technology, Resources Desalination Using Renewable Energy. Food Nexus. M. Mohtar, RH,Daher, B,Mohtar, S&Keulertz, Half Century. Consumption for Water Supply& Treatment - The Next (2003). (2005). (2011). (2015). Retrieved 13July2015,from http:// Water &Sustainability(Volume 4): U.S. Electricity NSW InfrastructureNSW Capability Assessment: Water (2015). Energy Use at Wisconsin’s Drinking Water Facilities. Water Facts and Trends. MENA Regional Water Outlook Part II: Renewable Energyinthe Water, Energy& (2002). Retrieved2July2015,from http:// (2015). GreenPower Generator List–March (1995). (2014). (2012). (2015). Future Dilemmas: Options to Retrieved 14July2015, Beneath CaliforniaCrops, (2010). Projected Seasonal WaterProjected Groundwater in Australia. Groundwater Renewable energy Are youreadyforthe (2010). (2009). Australian Energy (2010). World The Carbon

Kumar, A,Schei,T, Ahenkorah,A,Caceres Rodriguez, Kenway, SJ,Priestley,A,Cook,S,Seo,Inman,M, KADA Research. Jackson, T. Jackson, T, Khan,S&Hafeez,M. IRENA. Narayanamoorthy, A. Mitchell, C,Chong,J,Turner, A,Retamal,M,Carrard, Miller, GW. Mehta, CM,Tait, S&Batstone,DJ. McNabola, A,Coughlan,P, Corcoran, L,Power, C, AP.McNabola, A,Coughlan,PandWilliams, (2011). Maupin, MA,Kenny,JF, Hutson,SS,Lovelace,JK, TW,Martin, DL,Kranz,WL,Dorn, Melvin,SR&Corr, Marsden JacobsAssociates. Kyocera Corporation. Climate Change Mitigation. Climate Change In IPCCSpecialReportonRenewable EnergySourcesand Killingtveit, ÅZ.Liu. J-M,Freitas,R, Devernay, M,Hall,D,& New Zealand. provision andconsumptionofurbanwater in Australia and Gregory, A&Hall,M. nexus inirrigatedagriculture. irrigation regions. for irrigationinsurfaceandgroundwater dependent balance: Comparing water, energyandemissionspatterns Technology Brief. Irrigation inIndia. Saving water andspendingenergy? N &Murta,J. Managing GlobalWaterNeeds. Recovery from Australian Biosolids: Technology Options. Micro-Hydropower: an Opportunity toImproveSustainability. D. Williams, AP, Harris,I,Gallagher, JandStyles, Supply Networks. Technical &EconomicFeasibility ofEnergyRecoveryin Water Circular 1405. Water inthe United Statesin2010: U.S. Geological Survey Barber, NL, & Linsey,KS. AJ. recycled by2015. national targetof30% Australia’s wastewater being news/2014/1205_dfsp.html 13 July2015,from http://global.kyocera.com/ on Reservoirin Chiba Prefecture, Japan. Leasing toDevelop13.4MWFloatingSolarPower Plant (2012). (2014). (2010). (2009). (2005). Water Desalination Using Renewable Energy Energy Recoveryinthe Water Industry Using (2013). Reducing the Cost ofPumping Irrigation Water. An Appraisal oftheon-farmwater andenergy Integratedin Water Concepts Reuse: (2013). (2014). (2006). Anaerobic Digestion: A Market Profile. (2011).

(2012). (2008). Kyocera and Century TokyoKyoceraand Potential for DripandSprinkler (2010). (2010). Chapter 5: Hydropower (2012). Progress againstthe Energy useinthe Retrieved Estimated Use of Estimated Use Finding the Resources The The

23 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 6 BIBLIOGRAPHY National Water Market. (2015). National Water Market: About Rowley, G & Palmer, N. (2014). National Centre of Excellence in the water market. Desalination Annual Report 2013/2014.

Nederstigt, J & Bom, GJ. (2014). Renewable Energy for Sahin, O, Stewart, R, & Porter, M. (2014). Water security Smallholder Irrigation. through scarcity pricing and reverse osmosis: a system dynamics approach. NHA - Pumped Storage Development Council. (2014). Challenges and Opportunities for New Pumped Storage Scanlon, BR, Faunt, CC, Longuevergne, L, Reedy, RC, Development. Alley, WM, McGuire, VL & McMahon, PB. (2012). Groundwater Depletion and Sustainability of Irrigation in the NSW Farmers Association. (2013). Farm Energy Innovation US High Plains and Central Valley. Program - Energy and Irrigation Diesel Versus Electric Pumps. Scarborough, H, Sahin, O, Porter, M, & Stewart, R. NSW Farmers Association. (2014). NSW Farmers: Renewable (2014). Long-term water supply planning in an Australian energy on farm - overview. coastal city: Dams or desalination?

Owens, L. (2014). South Australian Water Corporation Annual Schmid, F. (2008). Sewage Water: Interesting Heat Source for Heat Report. Pumps and Chillers.

Pabi, S, Amarnath, A, Goldstein, R & Reekie, L. (2013). Schulte, S. (2013). Energy Policy: Electricity Tariffs and Charges. Electricity Use and Management in the Municipal Water Supply and Wastewater Industries. Shah, T. (2014). India’s Energy Groundwater Nexus: Present State and Future Prospects. Pacific Institute.(2015). Table 2: Freshwater Withdrawal, by Country and Sector (2013 Update). Retrieved 14 July 2015, Shrestha, RB & Shafique, RA.(2014). Transforming the use from http://worldwater.org/wp-content/uploads/ of Biogas in Pakistan: From Household Application Towards sites/22/2013/07/ww8-table2.pdf Powering Small Holder Irrigation.

Pamminger, F, Scott, D, Aye, L & Jelbert, R. (2013). Heat Simmonds, J & Kabouris, J. (2012). Renewable Energy Energy Recovery Potential from Sewers in Melbourne. Generation Through Co-Digestion of Non-Sewage Wastes.

Parkinson, G. (2015). Saudis to build world’s first large scale solar Stehle, S & Schulz, R. (2015). Agricultural Insecticides Threaten power desalination plant. Retrieved 12 July 2015, from Surface Waters at the Global Scale. http://reneweconomy.com.au/2015/saudis-build- worlds-first-large-scale-solar-powered-desalination- Tohmatsu, T. (2014). National Performance Report 2012-2013 plant-82903 Rural Water Service Providers.

Pearson, NO & Nagarajan, G. (2014). Solar Water Pumps UNESCO. (2012). Managing Water under Uncertainty and Risk. OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Wean Farmers From India’s Archaic Grid. Retrieved 13 UNESCO. (2014). World Water Day 2014 Advocacy Guide. July 2015, from http://www.bloomberg.com/news/ print/2014-02-07/solar-water-pumps-wean-farmers- UNESCO. (2015). UN World Water Development Report 2015: Water from-india-s-archaic-grid.html for a Sustainable World.

Pittaway, I. (2015). Solar power plant floating on wastewater UNICEF, WHO. (2015). Progress on Sanitation and Drinking Water hailed for multiple environmental benefits. 2015 Update and MDG Assessment.

Price, J. (2014). Biogas: Powering the future of the Australian Pork Unturbe, JM & Gomez, CM. (2014). Water and Energy Nexus: Industry. Challenges , Solutions and United Nations Initiatives.

ProDes. (2010). Roadmap for the Development of Desalination US EPA Office of Water. (2013). Strategies for Saving Energy at Powered by Renewable Energy. Public Water Systems.

Queensland Competition Authority. (2014). FACTSHEET: van der Gun, J. (2012). Groundwater and Global Change: Trends, Proposed changes to farm and irrigation tariffs for 2013-14. Opportunities and Challenges.

Rainsford, G. (2010). Hydro Power Plants Win National Award. Van Pelt, R, Weiner, C & Waskom, R. (2012). Solar-powered Groundwater Pumping Systems. Raupach, M and PMSEIC Working Group. (2010).

6 BIBLIOGRAPHY Challenges at Energy-Water-Carbon Intersections. Vos, L. (2007). Underground Thermal Energy Storage in the Netherlands. Rentricity, Aquarion Water Company. (2007). Rentricity - Aquarion Water Energy Recovery Pilot Study. Walton, B. (2015). California Drought Cuts Farm Water Allocation to Zero for Second Consecutive Year. Retrieved 12 July 2015, Roumasset, J and Wada, C. (2013). Energy Costs and the from http://www.circleofblue.org/waternews/2015/ Optimal use of Groundwater. world/california-drought-cuts-farm-water-allocation- 24 zero-second-consecutive-year/ Raupach, Mand PMSEICWorking Group. Rainsford, G. Queensland CompetitionAuthority. ProDes. Price, J. Pittaway, I. Pearson, NO&Nagarajan,G. Parkinson, G. Pamminger, F, Scott, D,Aye, L&Jelbert,R. Pacific Institute. A,Goldstein,R&Reekie,L. Pabi, S,Amarnath, Owens, L. NSW FarmersAssociation. NSW FarmersAssociation. NHA -PumpedStorageDevelopmentCouncil. Nederstigt, J&Bom,GJ. Waterlines. Water ReuseAssociation. Water intheWest. Consumption White Paper.Consumption White Review. hailed formultipleenvironmentalbenefits. from-india-s-archaic-grid.html print/2014-02-07/solar-water-pumps-wean-farmers- July 2015,from http://www.bloomberg.com/news/ Wean Farmers From India’s Archaic Grid. plant-82903 worlds-first-large-scale-solar-powered-desalination- http://reneweconomy.com.au/2015/saudis-build- power desalinationplant. Energy RecoveryPotential fromSewersinMelbourne. sites/22/2013/07/ww8-table2.pdf from http://worldwater.org/wp-content/uploads/ Country andSector(2013 Update). and WastewaterIndustries. Electricity Use andManagementintheMunicipal Water Supply Report. energy onfarm-overview. Program -EnergyandIrrigationDiesel Versus ElectricPumps. Development. Challenges and Opportunities forNewPumpedStorage Smallholder Irrigation. Challenges atEnergy-Water-Carbon Intersections. Proposed changestofarmandirrigation tariffsfor2013-14. Powered byRenewable Energy. Industry. (2014). (2010). (2014). (2015). (2008). (2010). (2015). Biogas: Powering thefutureof Australian Pork Roadmap fortheDevelopmentofDesalination (2015). South Australian WaterCorporation AnnualSouth Australian (2013). Solar powerplantfloatingon wastewater Emerging Trends inDesalinationReview. Hydro Power Plants Win National Award. Saudis tobuildworld’s firstlargescalesolar Table 2: Freshwater Withdrawal, by (2014). (2011). (2013). Water andEnergyNexus: A Literature (2014). Retrieved 12July2015,from (2014). Renewable Energyfor Seawater DesalinationPower NSW Farmers: Renewable Farm EnergyInnovation Retrieved 14July2015, (2014). Solar WaterPumps Retrieved 13 (2010). (2013). FACTSHEET: (2014). (2013). Heat Schmid, F. Scarborough, H,Sahin,O,Porter, M,&Stewart,R. Scanlon, BR,Faunt,CC,Longuevergne,L,Reedy,RC, Sahin, O,Stewart,R,&Porter, M. Rowley, G&Palmer, N. Roumasset, JandWada, C. Rentricity, AquarionWater Company. Vos, L. Van Pelt,R,Weiner, C&Waskom, R. van derGun,J. US EPA Office of Water. Unturbe, JM&Gomez,CM. UNICEF, WHO. UNESCO. UNESCO. UNESCO. Tohmatsu, T. Stehle, S&Schulz,R. Simmonds, J&Kabouris,J. Shrestha, RB&Shafique, RA. Shah, T. Schulte, S. Pumps and Chillers.Pumps coastal city: Damsordesalination? (2014). US HighPlainsand Central Valley. Groundwater DepletionandSustainabilityofIrrigationinthe Alley, WM,McGuire, VL&McMahon,PB. dynamics approach. through scarcitypricingandreverseosmosis: asystem Desalination Annual Report2013/2014. Optimal useof Groundwater. Aquarion Water EnergyRecoveryPilotStudy. Netherlands. Groundwater PumpingSystems. and Challenges.Opportunities Public WaterSystems. Challenges , Solutionsand United NationsInitiatives. 2015 Update andMDG Assessment. for aSustainable World. Rural Water ServiceProviders. Surface Waters atthe Global Scale. Generation ThroughNon-Sewage of Wastes. Co-Digestion Powering SmallHolderIrrigation. of BiogasinPakistan: From Household Application Towards and FutureProspects. (2007). (2014). (2015). (2014). (2012). (2008). (2013). (2014). Long-term water supplyplanninginan Australian (2015). Underground Thermal EnergyStorage inthe (2012). India’s Energy Groundwater Nexus: PresentState UN World2015: WaterReport Development Water World Water2014 Day Advocacy Guide. Managing Water under Uncertainty andRisk. Sewage Water: InterestingHeatSourcefor Energy Policy: Electricity Tariffs and Charges. National Performance Report2012-2013 (2015). Progress onSanitationandDrinking Water Groundwaterand GlobalChange: Trends, (2013). (2014). (2014). (2012). (2013). Agricultural Insecticides ThreatenAgricultural (2014). National Centre ofExcellencein Strategies forSavingEnergyat (2014). Renewable Energy Energy Costs andthe Water andEnergyNexus: (2012). Transforming the use (2007). Water security Solar-powered Rentricity - (2012).

25 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 6 BIBLIOGRAPHY Walton, B. (2015). California Drought Cuts Farm Water Allocation to Zero for Second Consecutive Year. Retrieved 12 July 2015, from http://www.circleofblue.org/waternews/2015/ world/california-drought-cuts-farm-water-allocation- zero-second-consecutive-year/

Water in the West. (2013). Water and Energy Nexus: A Literature Review.

Water Reuse Association. (2011). Seawater Desalination Power Consumption White Paper.

Waterlines. (2008). Emerging Trends in Desalination Review.

WERF. (2010). Sustainable Treatment: Best Practices from the Strass im Zillertal Wastewater Treatment Plant.

Wilson, P (ISS Institute Inc.). (2013). The Generation of Biogas on-Farm Using Animal and Dairy Waste.

Winter, TC, Harvey, JW, Franke, OL and Alley, WM. (1998). Ground Water and Surface Water A Single Resource.

World Bank Group. Introduction to Wastewater Treatment Processes. Viewed July 6 2015, http://water.worldbank. org/shw-resource-guide/infrastructure/menu-technical- options/wastewater-treatment

Worthington, MA. (2012). Aquifer Thermal Energy Storage: Feasibility Study Process and Results for District Energy Systems.

Zakkour P, Gaterell M, Griffin P, Gochin R and Lester J (2002). Developing a Sustainable Energy Strategy for a Water Utility. Part I: A Review of the UK Legislative Framework. Journal of Environmental Management, vol. 66, pp. 105–114.

Zhu, T, Ringler, C and Cai, X. (2007). Energy Price and Groundwater Extraction for Agriculture: Exploring the Energy- OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Water-Food Nexus at the Global and Basin Levels. 6 BIBLIOGRAPHY

26 APPENDICES

27 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PHASE 1 & 2 FINAL DRAFT REPORT PRIORITY SETTINGA PROCESS OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PHASE 1 & 2 FINAL DRAFT REPORT

28 Table A1. evaluation duringthecourseofthisstudyare outlinedin objectives. Theinitialpriorityarea hypothesesfortestingand initially demonstratethemostpotentialinmeetingARENA’s of priorityarea hypotheses were developedbelievedto and initialfindingsoftheliterature review, anumber technology applicabilityassessment,industryinformation Based upontheoutcomesofrenewable energy Hypotheses Priority Areas sector literature reviews. water the initialfindingsofAustralianandinternational technologies wasbaseduponexperience,knowledgeand relevant todifferent watersubsectors.Theapplicabilityofthe undertaken tobroadly determine technologyapplications renewable energytechnology applicabilityassessmentwas In order todeterminetheinitial priorityarea hypotheses,a Technology Applicability SETTING THEHYPOTHESES below. priority areas withintheAustralian watersectorisoutlined An overviewofthegeneralprocess fordeterminingARENA’s and informationgathered andanalysed. priority areas forARENA’s consideration,baseduponevidence the courseofthisstudy,tohelpdeterminerecommended engagement process. Thesehypotheseswere tested during formulated tohelpguidetheinvestigationsandstakeholder of theliterature review, apriorityareas hypothesiswas existing industryinformationandthepreliminary findings the costofrenewable energywithinAustralia.Basedupon legislated objectivestoincrease theuseofanddecrease funding andknowledgesharingactivitiesthatreflect ARENA’s The ARENAprioritysettingprocess isusedtoprioritisegrant PRIORITY SETTINGPROCESS PRIORITY SETTINGPROCESS APPENDIX A–

stakeholder engagementstages,amulti-criteriaanalysiswas After consideringallinputsfrom theliterature review and PRIORITY AREAS FINALISING Section 4. they relate tothehypothesisedpriorityareas are outlinedin Details oftheresults andfindingsoftheseprocesses as surveys, interviewsandknowledgesharingworkshops. investigation andfeedbackfrom stakeholdersthrough online during thestakeholderengagementstagethrough targeted during theremainder oftheliterature review andalso The hypothesisedpriorityareas were reviewed andtested TESTING THEHYPOTHESES selected priorityareas. relevant considerationsincorporated before finalisingthe further testedbystakeholderreview andfeedback,withany meet ARENA’s objectives.Theseselectedobjectiveswere then carried outinorder toselect thosepriorityareas whichbest

29 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX A - PRIORITY SETTING PROCESS Table A1 – Initial priority area hypotheses OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX A - PRIORITY SETTING PROCESS

30 INTERNATIONAL WATER LITERATURE MARKET REVIEW B1

31 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PHASE 1 & 2 FINAL DRAFT REPORT APPENDIX B1 – INTERNATIONAL WATER MARKET LITERATURE REVIEW

GLOBAL WATER MARKET OVERVIEW of plentiful and cheap water and electricity (Christian-Smith & Wisland 2015), however, as the more easily accessible Globally, there is considerable variation in the use of water sources become utilised to capacity alternate water water, with significant differences between developed and sources need to be accessed to ensure continuity of supply. developing countries. Whilst the global average for water It is expected that, based on current demand predictions, use is represented by 70% for agriculture, the split across there will be a 40% water scarcity globally by 2030 (UNESCO developed and developing countries is 30% and 82% 2015). respectively. The impending changes of global water use have given Total worldwide water withdrawals are estimated at 4,000 rise to a growing focus on what is known as the energy km3. This figure is expected to rise to 5,500 km3 by 2050, and water nexus. This nexus describes the linkages and due to a growing population and rising living standards, with interdependence of energy and water, and the implications an increasing focus on domestic and industrial consumption these connections have on these sectors, such as the reliance [(UNESCO 2014), (Unturbe & Gomez 2014)]. on water for the generation of electricity and the requirement These changes represent a large shift in the water sector for energy to pump and treat water (Ferroukhi et al 2015). globally. Water infrastructure was traditionally constructed on The consideration of this nexus brings to light many issues the assumption that there would be a continued availability involving food and energy production and their reliance on water (Asian Development Bank 2013). OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW

Figure B1 – Overview of the Water-Energy Nexus of global focus (Source: World Bank©)

32 be lessrigorously controlled. located. Groundwater sources, particularlyinruralareas, tendto on theregulatory frameworkoftheregion inwhichtheyare controlled byamixofpublicandprivateentities,depending 1998), (Stehle&Schulz2015)].Rawwatersources are generally including cross etal contaminationandsurfacerunoff [(Winter subjects bothsurfaceandgroundwater systemstopollution associated changesinfarmingpracticesandfoodproduction, Increasing urbanisation,coupled withpopulationgrowth and (UNESCO 2015). of watercoordination mechanisms tomanagetheseresources cause conflict(Cooleyetal2009),althoughthere are examples between multiplecountries,where differing nationallawscan difficulty withcooperationwhenbodiesofwaterare shared globe, dependingontheregion (UNESCO2015).There isoften The regulation ofvariouswater sources alsodiffers across the (Pabi etal2013). groundwater tomeettherequired drinkingwaterstandards surface wateroftenrequires more extensivetreatment than 2015), (UNESCO2012)].Inadditiontothesedifferences, withdrawal andtheuseofnon-renewable aquifers [(UNESCO climate change,inmanyareas it is beingdepletedduetoover 2015). Althoughgroundwater isnotasdirectly affected by watersources causes heavieruseofalternate (Gillis&Richtel balance isaffected byclimatic eventssuchasdrought, which resources are notasreadily available(deGooijeretal2008).This groundwater beingmore prevalent inareas where surfacewater Surfacewateristhepredominant source ofwaterglobally,with 2050 [(Unturbe&Gomez2014),(UNESCO2014)]. withdrawals are expectedtoincrease toover5,500km2 by water sources [(UNESCO2012),(vanderGun2012)].Total groundwater sources withtheremainder sourced from surface total withdrawals,approximately 1,000km2isextractedfrom industry and10%fordomesticuse(UNESCO2014).Ofthese Of thiswater, 70%isusedinagriculturalapplications,20%for Smakhtin 2014),(Pacific Institute,2015),(vanderGun2012)]. estimated tobearound 4,000km2annually[(Amarasinghe& The totalwithdrawalofwaterfrom theserawwatersources is water, foundinunderground aquifers. water, suchasthatfoundinriverslakesanddams,orground of treatment. Rawwatercanbecategorisedaseithersurface excluding seawater, before ithasundergoneanypurification Raw wateristhatfoundnaturallyintheenvironment, Overview RAW WATER costs impacts rawwaterpumping and distancesignificantly Water source, topography reduced evaporationofwaterstores. Floating solarPVisarelativelynewtrendwhichallowstheutilisationofavailablespaceforgenerationwith Pumping formsthemajorityofenergydemandfromrawwater, withexactlevelsdependingonthearea. Most waterwithdrawalsgloballyarefromsurfacesources,witharoundaquartergroundwater. generation 20% ofglobal electricity source equating toabout largest renewable energy Hydropower istheworld’s water sources isfrom large-scalehydroelectric generation The mostprevalent source ofrenewable energyutilisingraw Renewable Energy renewable energyduetotheirtypicallyhigheroperationalcosts. may suggestthattheyare areas offocusfortheuse utilised [(Martinetal2010),(Zhu,Ringler&Cai2007)]which groundwater, dieselandotherfossilfuelsare more commonly electrical network,howeverinirrigation,particularlywith This energyforpumpingisfrequently provided from the [(UNESCO 2012),(Griffiths-SattenspielWilson 2009)]. & energy intensiveduetotheneedlift waterfrom its source of thewater. Typically, usinggroundwater willbemuchmore the topologyofarea, thedistancepumpedandsource The amountofenergyusedinpumpingwaterwilldependon the wateranddistancetopointofdemand. pumping. Themethodofpumpingdependsonthesource of The primaryenergydemandforrawwatersupplyisfrom Energy Demand techniques [(Shah2014),(GlobalWater Intelligence2015)]. such asIndia,are widelyreplacing conventionalpumping applications solarpumpingsystemsare commonand,inareas evaporation ratesofthewaterstored below.Ingroundwater The shadeofthesolarpanelsthemselvesalsohelpstolower mounted panel,duetohigherpanelefficiency (Clark,L2015). of watertoproduce more energythanatraditionalsurface Corporation 2014).Theseinstallationsutilisethecoolingeffect solar installationsare beginning tobeconstructed(Kyocera available surfacewaterareas. Insurfacewaterstorage,floating sources, bothforpumped systems andintermsofutilisingthe Solar PVcanbeaviableoptionforco-locationatrawwater impact [(Worthington, MA 2012),(Vos 2007)]. can result inlargeenergysavings andreduced environmental recovery ofstored energy,andisinwideusesomeareas. It thermal energystorage(ATES). Thissystemcanresult in70% It isalsopossibletoutiliserawwaterindirectly, through aquifer pressure (Allen,Fay&Matys2013). generate electricityfrom sources oflowerflowandhead common toutilisesmallerhydroelectric generationschemesto released whenrequired. itisalsobecomingmore Alternatively, Pumped StorageDevelopmentCouncil2014)enablingittobe storage ofelectricalenergyduringtimeslowdemand(NHA- facilities. Hydroelectric pumped storage,allowstheefficient supplied from ground water global rawwatersupplyis Approximately 25%of

33 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW WATER TREATMENT AND WATER RECYCLING

Water treatment requires different levels of energy depending on the treatment standards. Energy requirements have grown over time as the standard of treatments increase. There are limited options for renewable generation at water treatment facilities.

Overview Renewable Energy Water treatment encompasses the conversion of raw water, The processes associated with water treatment do not from a source such as surface or ground water, to a standard generally have any particularly prevalent sources of easily acceptable for human use. Water recycling also includes the utilised renewable energy. As a result they tend to have a treatment of wastewater to a sufficient grade that it may be lower uptake of renewable energy. redistributed for use, as drinking water or as a lower grade of water for irrigation or industrial purposes. Where this reduces Where topography permits there have been examples of the demand for treated water, it is referred to as potable small hydroelectric generation systems powering water substitution. The level of treatment required depends on the treatment plants (McNabola et al 2014). source of the water, with sources that contain a greater level of contaminants, biological or otherwise, requiring greater levels of treatment [(Pabi et al 2013), (UNESCO 2012)]. Water treatment Water treatment facilities are a mixture of privately and requirements and energy publicly owned, with the largest more commonly owned by is heavily dependent upon public utilities. water quality and sanitation Energy Demand The energy required for the treatment of drinking water can vary greatly depending on the source of the water and the treatment type although the quantity of pumping energy which is used solely in the treatment process is hard There is a global drive for alternative water sources to quantify from the available data (Ellito et al 2003). As including recycling and the requirements for drinking water standards increase, a desalination corresponding increase in energy use in water treatment is being observed [(Pabi et al 2013), (Chang et al 2008)].

A rise in the use of recycled water is expected to drive an increased demand for energy usage in this sector (Christian- Smith & Wisland 2015) and it is widely reported that recycled water has an energy intensity around the same or greater than that of groundwater [(Water in the West 2013), (UNESCO 2014)]. Depending on the existing level of OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR treatment at wastewater plants and the levels of treatment required for reuse, the energy required to recycle water will vary (Cooley & Wilkinson 2012). APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW

34 annum indesalinationoperations globally(UNESCO2014). More than75.2TWhofelectricalenergyisexpendedper efficiency gains(Roumasset& Wada 2013). a result energypriceincreases maybeoccurringfasterthan efficiency gainswilldrop (Elimelech&Phillip2011)andas energy requirement fordesalinatingwater, itisexpectedthat efficient andare gettingclosertothetheoretical minimum reverseAs modern osmosismembraneshavebecomemore intensive desalinationprocesses (Roumasset&Wada 2013). use upto25kWhperkLduetheofmore energy (UNESCO 2014).Olderdesalinationplantscan,however, per kL,withaworstcasescenariouseof8.5kWhkL 1.0kWh perkL(forbrackishwater)toaround 4.5kWh desalinationplanthasbeenreportedof amodern from 2011). Forseawaterdesalination,theenergyrequirement and theinletwatertemperature (Water ReuseAssociation the salinity of the feed water, the type of desalination process desalination plantsdependsonanarrayoffactors,including has thelargestenergyfootprint.Actualdemandof Of allmethodsofproducing potablewater, desalination Energy Demand total production of1.6million kLperday(ProDes 2010). the smallestproducer ofthe four, operates700plantswitha United ArabEmirates,KuwaitandSpain.Spain,despitebeing users ofdesalinationintheworldare SaudiArabia,the fresh waterperday(Ferroukhi etal2015).Thefourlargest worldwide. Intotaltheseplantsproduce 70millionkLof Currently there are 16,000desalinationplantsoperating growth maybeunderway (Global Water Intelligence2015). years, recent analysisindicates thatarebound indesalination anticipated theglobaleconomicclimateofintervening per day(ProDes 2010).While thisestimationcouldnothave desalination woulddoubleby2016toover100millionkL In 2008itwasexpectedthattheworldwideuseof multi-stage flashandmulti-effect distillation. Other technologiesincludeelectrodialysis, nanofiltration, leaving saltontheincomingside(Nederstigt&Bom2014). a process where waterisforced through amembrane, most prevalent technology for desalination is reverse osmosis, Desalination isperformedusingavarietyofmethods,the saline brackishwater. consumption. Generallythisoccursfrom eitherseawateror concentration intheresulting watertolevelssafeforhuman salt isremoved from asalinewatersource, reducing its of waterscarcity. Desalinationistheprocess bywhich of fresh waterandisparticularlyimportantinregions Desalination isaweatherindependentoptionforthesupply Overview DESALINATION renewable power, alongwithongoingresearchinsolarthermaldesalination. and NorthernAfrica.Itconsumesalargeamountofenergy.Hencethereisgreaterfocusontheuse Desalination isanimportantsourceofwaterglobally,particularlyinaridareassuchastheMiddleEast indirectly through electricitygeneration(Goosen,Mahmoudi geothermal energyisreadily available,eitherdirectly or Geothermal desalinationalsoshowspromise inareas where traditional desalinationplant,(ProDes 2010). would represent higherinstallationcoststhanthose of a (Fichtner 2011).Atthistime,alargeCSPdesalinationplant depending onthetypeofplantandenergyrequirements) directly, generateelectricityforuseindesalinationorboth, power (CSP)couldprovide heatforuseindesalination desalination isthrough theuseofconcentratedsolar promising methodforapplyingrenewable energy in In additiontothecurrent renewable technologies, a 2015). plant plannedforconstructioninSaudiArabia.(Parkinson 2010), (IRENA2012)].There iscurrently a15MWsolar PV but bothtendtobeconstructedonsmallerscales[(ProDes desalination worldwideisthrough solarPVandwindenergy, Currently bynumbers,themostprevalent renewable usein Renewable Energy Vegt etal2011). power forrenewable energy powered desalination(cander & Ghaffour 2010).There isalsointerest intheuseofwave powered byrenewables energy requirements are Only 1%ofdesalination desalination energy isusedgloballyfor More than75.2TWhof 150 countries operating globallyinover desalination plants There are over17,000 geothermal include solarthermaland desalination technologies Emerging global

35 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW DISTRIBUTION AND RETICULATION NETWORKS

In developed nations water distribution is estimated to consume 45% of the energy required for water supply. Micro-hydro schemes are a popular method of recuperating some of this energy in the distribution system.

Overview Renewable Energy Water distribution networks deliver bulk water supplies A common use of renewable energy in the water distribution from the raw water source to the treatment plant, and sector is from the use of micro hydroelectric generation as an from the treatment plant to the customer. Wastewater energy recovery mechanism. These systems can be installed collection systems transfer the raw sewage to the wastewater in place of traditional pressure control devices such as break treatment plants. pressure tanks, pressure reduction valves and control valves (McNabola et al 2014). These systems have the capacity to While both private and public distribution entities exist, the produce meaningful quantities of electrical energy from the larger tend to be public municipal supply systems. distribution network [(McNabola, Coughlin & Williams 2011), (Corcoran, McNabola & Coughlin 2012), (Rentricity, Aquarion Energy Demand Water Company 2007)]. In water distribution and reticulation energy consumption is In addition to the conversion of energy inside the water primarily for the pumping of water. The amount of energy distribution network, there is also potential for use of required for pumping depends largely on the network latent heat in sewage water using a heat exchanger topology and can vary greatly from place to place [(Pabi et and heat pump. This is more efficient than operating al 2013), (Caffoor 2008)]. In developed countries, water traditional heating and cooling systems (Schmid 2008). In distribution overall is estimated to account for 45% of the these applications it is important to consider the needs of energy required in the supply of water (McNabola et al 2014). treatment plants downstream as there are often minimum temperature requirements for effluent to be properly processed (Pamminger et al 2013), however conversely the opposite technique can be applied to provide cooling by releasing heat into the sewage flows.

Pumping accounts for The use of small-scale approximately 45% of hydro for energy recovery energy required for supply on distribution systems is of water growing internationally OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW

36 (UNESCO 2015). operational costsinwastewater treatment plantsglobally estimated thatelectricitycosts accountforupto40%ofall flows are increasing [(Pabi etal2013),(Caffoor 2008)]. Itis the energyrequirements for thetreatment ofwastewater chain [(UNESCO2015),(McNabolaetal2014)],andoverall a significant portionoftheenergyusedinwatersupply It isnotuncommonforwastewatertreatment toconsume required forwastewatertreatment (UNESCO2014). site andequipmentefficiency, around 0.62-0.87kWh/KLis The UNestimatesthat,excludingpumpingtothetreatment levels oftreatment (USEPA Office of Water 2013). from primarytosecondaryanddoublesagaintertiary treatment andthesizeofplant,butapproximately doubles considerably dependingontheleveloftreatment, thetypeof of energy.Theexactquantityenergyusedwillvary advanced treatment processes requiring higheramounts depends largelyonthetreatment processes used,withmore The divisionofenergyconsumptioninawastewaterplant Energy Demand owned entitiesservinglargeportionsofcommunities. The largertreatment works havehistoricallybeenpublicly publicly owned,dependingonlocalregulatory frameworks. Wastewater treatment facilitiescanbebothprivatelyand WHO 2015). the largestchangesoccurringindevelopingregions (UNICEF, improved sanitationhasclimbed form54%to68%,with Since 1990thetotalworld’s populationwithaccessto treatment process willincrease (Water intheWest 2013). plants theamountofenergyrequired inthewastewater numbers ofpeopleare servedbywastewatertreatment stringent dischargeregulations comeintoplayandlarger increasing steadilyoverthe lastseveraldecades.Asmore The prevalence ofadvanced wastewatertreatment hasbeen quality (World BankGroup). contaminant removal, producing waterofalmostdrinking suspended solids.Finally,tertiarytreatment involvesfurther of dissolvedorganicmatterandadditionalremoval of sediment, whilesecondarytreatment involvestheremoval Primary treatment includestheremoval ofsolidparticles and required. (also knownastertiary)dependinguponthewaterquality treatment categorisedasprimary,secondaryoradvanced plants themselvestypicallyconsistofmultiplestages wastewater treatment plant(WWTP).Wastewater treatment transports wastewaterfrom end-usersofwatertothe treating wastewater, typicallythrough asewersystemwhich water industrywhichisresponsible forreceiving and Wastewater treatment encompassesthesectionof Overview WASTEWATER TREATMENT become netenergyneutral. utilisation isapopularrenewable energysource tooffset theseenergyrequirements globally,withmanyplantsableto Wastewater treatment canoftenconstituteasignificant portionofenergy requirements inthewatercycle.Biogas considerably offset theenergy requirements ofwastewater Biogas extractedfrom wastewater hasthepotentialto which canbeusedasafuel. a biogascomposedprimarilyofmethaneandcarbondioxide digester, where sludgeisdecomposedbybacteria,toproduce process usesanoxygenfree chamber, knownasananaerobic isfrombe harnessed theanaerobic digestionprocess. This the wastewateritself. Oneopportunityforthisenergyto abundance ofpotentialenergyavailableforextractionfrom energy applicationsinthewatersector, duetothe Wastewater treatment isaprimecandidateforrenewable Renewable Energy carbon dioxide,releases oxygen,andproduces biomasswhich of thewastewatertreatment process. Thisalgaecaptures An emergingtechnologyisthe useofalgaebiomassaspart Research 2013). be redistributed asfertilizer, furtheringitsutilisation(KADA remaining material,knownasdigestate,hasthepotentialto 2015). Inbothregular digestionandco-digestion,the produce agreater volumeofgas(Christian-Smith&Wisland from sources, external such asfoodscraps,allowingthemto digesters are capableofaccepting additionalorganicwaste Anaerobic digesterscanalso beusedasco-digesters.Co- output capacitiesdesignedatover10MW(DCWater 2010). seen applicationonarelatively largescale,withsomeplants Biogas utilisationatwastewatertreatment plantshasalso Zilteral wastewatertreatment plantinAustria(WERF2010). 2015),suchastheStrasseim (Christian-Smith &Wisland treatment plantstoreach thestateofanenergyproducer In additiontoself-sufficiency, itmaybepossibleforsome implemented inmanylocationsglobally. is widelyrecognised inthe wastewatersectorandhasbeen 2015)].Thisopportunity 2010), (Christian-Smith&Wisland than isrequired forplantprocesses [(UNESCO2012),(WERF treatment systemsand,in some cases,considerablymore taxis andpublicbuses to vehiclessuchaspowers wastewater isusedasafuel In Sweden,biogasfrom technologies algae wastewatertreatment There isglobalresearch into

37 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW may be converted into biodiesel. It is also possible to use specific algae species to reduce the levels of Internationally, many nitrogen and phosphate in the final waste stream wastewater treatment (Bhatt et al 2014). facilities are energy neutral or even energy positive in In some areas small hydroelectric generators have also energy production been used in order to capture energy from the outflow of wastewater treatment plants (Rentricity, Aquarion Water Company 2007). OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW

38 (Cooley & Wilkinson 2012).Water(Cooley &Wilkinson recycling isseenasa treated tothelevelnecessaryforrecycled water’s purpose water source. Thiswateristhenrequired tobefurther For waterrecycling, treated wastewaterisconsidered the WATER RECYCLING schemes (Angelakis&Gikas2014,Miller2005). numerous examplesworldwideofoperationalrecycled water viable optionformeetingfuture waterdemandandthere are

39 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW IRRIGATION AND AGRICULTURE

Irrigation uses 70% of the world’s freshwater withdrawals with 43% of irrigation withdrawals from groundwater. Significant energy is used in pumping of this water. Solar PV pumping is of interest in developing nations, while more developed nations are utilising biogas digestion in the agricultural sector as part of wastewater treatment processes.

Overview Renewable Energy Irrigation is the single largest consumer of water in the The agricultural water sector has some history in the use world, estimated to utilise 70% of the world’s freshwater of renewable energy, as windmills for water pumping have withdrawals. This equates to a total around 2800 km3 of long been used in remote locations. In some locations these water withdrawal every year (UNESCO 2012). The specific are being replaced by solar PV pumping systems due to percentage of water use for any individual country varies the higher predictability presented by solar energy systems and tends to be lower in developed countries increasing to (Nederstigt & Bom 2014). over 90% in some of the least developed countries (UNESCO 2015)]. Of the world’s total withdrawal for irrigation, 43% Solar PV pumping systems are of particular interest in of that is drawn from groundwater (UNESCO 2015). The developing countries, due to the rising costs of diesel fuel, majority of this water use is in the form of surface (flood) expensive and unreliable power systems, and the falling cost of irrigation and sprinkler irrigation (Maupin et al 2010), solar PV technology. This has led to the promotion of small solar particularly in developing countries (Narayanamoorthy 2006). PV pumping systems for farmers in developing countries to help enable self-sufficiency (Nederstigt & Bom 2014). Governments Projections indicate that this figure for withdrawals for are also supporting the expansion of solar PV pumping irrigation will increase by 5% by 2050. At the same time networks, India, for example, has plans to replace 26 million actual consumption of water in irrigation will increase by groundwater pumps with solar powered pumps for irrigation 11% (UNESCO 2012). This increase could be augmented [(Global Water Intelligence 2015), (Pearson & Nagarajan 2014)]. by growth in the biofuels sector, with growth in the There are also systems built for provision of groundwater for development of irrigated biofuel crops having the potential livestock use (Van Pelt, Weiner & Waskom 2012). to affect future agricultural water use trends significantly (UNESCO 2015). It is suggested that if biofuels used as road An additional source of renewable energy which is readily fuel were to increase to a 5% share of road fuels, it could available to this sector is through the digestion of agricultural result in a 20% increase in irrigation demands (Unturbe & waste to produce biogas. This source is particularly relevant Gomez 2014). in the developing world where it is being implemented on a small scale to allow the use of biogas to supplement fossil The nature of demand and usage patterns in agriculture means fuels (Shrestha & Shafique 2014), but has also been applied that it is severely impacted by adverse climatic conditions. on a larger scale, where it can be used for heat or electricity During extended dry periods, demand increases but availability generation to supplement the energy consumption of the decreases. Where surface water is primarily used for irrigation, farm. These digesters are capable of utilising both animal groundwater use is increased significantly during times of and plant waste, although some types of non-manure waste drought [(Scanlon et al 2012), (Walton 2015)]. require a source of bacteria appropriate for digestion. The digestate which is produced by the process may also be used

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR In irrigation and agriculture, the ownership of related assets as fertiliser for crops (Wilson 2013). tends to vary depending on the region and the method of irrigation. While some regional irrigation distribution systems are publicly owned, often groundwater irrigation systems and APPENDIX B1 - INTERNATIONAL WATER MARKET LITERATURE REVIEW those fed from nearby bodies of water directly, are owned by the irrigators themselves. 70% of water global is used in agriculture Energy Demand Water pumping forms a significant portion of energy use in irrigation and agriculture. It is estimated that, across a total of 300 million irrigated hectares across the globe, a total of 62TWh of energy is expended annually in the pumping of irrigation water. Land irrigated from groundwater accounts India’s Ministry of New and Renewable Energy (MNRE) for most of this energy due to the higher energy intensity plan to install 17,500 solar involved in groundwater pumping (UNESCO 2014). photovoltaic water pumps In many areas diesel pumps are used particularly in the across the country developing world where grid connections, where available, can be unreliable at best [(Zhu, Ringler & Cai 2007), (Shah 2014), (Albers 2013)]. Renewable energy pumping The energy required for irrigation water pumping is estimated systems are growing at 0.079kWh per kL for surface water and 0.185kWh per kL particularly in developing for groundwater (EPRI 2002). Due to the seasonal nature of nations where access to irrigation, this energy consumption will also vary month-to- electricity is limited month (Hook & Thomas 1995). 40 AUSTRALIAN WATERAUSTRALIAN LITERATURE MARKET REVIEW B2

41 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PHASE 1 & 2 FINAL DRAFT REPORT APPENDIX B2 – AUSTRALIAN WATER MARKET LITERATURE REVIEW

AUSTRALIAN WATER MARKET OVERVIEW over 80% of the continent. Australia is exceptional among developed nations in being a developed economy with a In contrast to many other developed countries, Australia growth pattern for population, energy use and emissions features a wide range of climatic zones, from tropical regions more characteristic of the developing world [(M Raupach & to the north, arid expanses of the interior to the temperate PMSEIC Working Group 2010), (ABS 2014)]. regions of the south. Australia is the world’s second driest continent with an average annual rainfall of below 600mm

Figure B2 - Water supply and use 2012-13 – Australia Source: Australian Bureau of Statistics (ABS, 2014)

Consequently, Australia stores more water per capita than in major urban centres, highlighted the need for planners any other country in the world. The cities are often very to prepare a diversified water supply portfolio that included dependent on normal rainfall patterns to replenish supply rainfall-independent water supply options. Reliance solely on sources, making them highly exposed to extended drought dams, which are heavily dependent on ‘average’ rainfall and OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR conditions (O Sahin, R Stewart et al 2014). potentially inadequate for faster growing centres, is being replaced with augmentations from diverse sources, many of Australia’s water consumption annually is approximately which provide reliability during times of drought, and other 20,000 gigalitres per year (ABS 2014). 65% (12,000 GL) of natural crises (Marsden Jacobs Associates 2012).

APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW Australia’s total water consumption is used by the agricultural sector of the economy. Water consumption by households Water utilities have responded to this need through represented 1,850 GL, sewerage and drainage services significant investment of over $30 billion over the past consumed 2,408 GL (including distribution losses) and mining decade to diversify water resources and have worked with and manufacturing 1,100 GL. consumers to reduce drinking water use [(S Cook, M Hall & A Gregory 2012), (H Scarborough, O Sahin et al 2014)]. The By 2050 the water requirement for urban Australia could vary main rain independent sources to augment water supplies in from 5,000 to 8,000 gigalitres per year depending on the Australia are: desalination, waste-water treatment to produce population scenario. It has been estimated that the increase recycled water, and demand management policies such as of total water use will go from 20,000GL to more than water restrictions (H Scarborough, O Sahin et al 2014). 40,000 GL by 2050 (B Foran & F Poldy 2002). The management of water and wastewater in Australia is a The Australian water sector was one of the first industries complex process differing across states and territories. The to be significantly impacted by recent climate variability. Australian water market for water supply and wastewater Reduced rainfall and declining inflows placed extreme management comprises specific water authorities and bulk pressure on traditional water supplies and forced water providers in the capital cities and in rural areas it is reconsideration of existing supply and demand scenarios. under local council direction. Indeed ten years of below average rainfall across most of Australia until 2010, combined with rapid population growth

42 required. Water industrydecisionsonoperationalstrategies dimensions andconfigurations,treatment standards densities, locationandqualityofwatersources, pipe depending onlocalfactorssuchastopography,urban Energy requirements varysignificantly from citytocity, 2012), (ABS2014)]. water supplyandtreatment [(SCook,MHall&AGregory use by2030duetotrends ofincreasing energyintensity of Australia, thisisexpectedtorise0.9%ofthetotalenergy (and wastewater)servicesproviding for17millionpeoplein estimated that0.3%(2.6TWh)isusedforurbanwater Australia uses860TWhofenergyannually.Ofthisitis which continuetoincrease (Raupach2010). electricity consumptionandGHGemissionsperperson), to waterpricingandefficiency measures, incontrastwith water consumptionperpersonisnowdecreasing inresponse much slowerthangrowth inenergyconsumption.Urban Growth Australiahasbeen inwaterconsumptionsouthern 2002), (Cook,Hall&Gregory 2012)]. raw andtreated waters[(Chartres 2005),(Zakkouret al quality watersources andincreased pumpingdistances for increasing withincreased treatment standards, useoflesser energy use.Energyuseinwaterservicesprovision is and technologyselectioncanalsosignificantly influence

43 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW RAW WATER

Raw water sources in Australia have been used to provide significant hydroelectric generation, utilising most readily available sites. There is opportunity in the use of mini-hydro plants. Floating solar and pumped storage also show promise.

Overview Energy for raw water pumping is generally supplied by electricity from the grid or by diesel pumps for off-grid Raw water in Australia relates to surface water, typically locations. Diesel pumping applications for raw water supply stored in dams or extracted from rivers and also groundwater represent the most energy and carbon intense raw water sourced from aquifers. It is estimated that of the total supply sources, and those applications which are most likely water consumption in Australia (20,000 GL per annum) to have greater return on investment for renewable energy approximately one quarter of this water (5,000 GL) is sourced technologies replacement. from groundwater [(ABS 2014), (N Harrington & P Cook 2014)]. Renewable Energy Australia’s major eastern state cities including Melbourne, Hydroelectric schemes are a well-developed source of Sydney and Brisbane rely on dam supplies for approximately renewable energy in Australia, using falling water to spin 80% of their municipal water. Other major populated regions turbines connected to a generator to generate electricity. In are supplied from a combination of water sources including 2014, hydroelectric plants produced about 9% of electricity South Australia receiving 44% from the Murray River and output in the National Electricity Market (State of the Energy 50% from dams, whilst in Western Australia only 25-45% market 2014 AER). Australia has more than 100 operating is sourced from surface water and dams with the remaining hydroelectric power stations with total installed capacity of water being supplied from a combination of groundwater approximately 7,800 MW with these being predominantly (35-50%) and desalination (15-20%), (S Cook, M Hall & A located in New South Wales (55%) and Tasmania (29%). The Gregory 2012). largest is the Snowy Mountains Hydro-electric Scheme with a total installed capacity of 3,800 MW [(Geoscience Australia & Surface water supply from dams is heavily climate dependent, ABARE 2010), (Clean Energy Council 2012)]. and periods of drought have significantly impacted dam levels. The approach for development of drought resilient Australia’s large hydroelectric schemes have been constructed water infrastructure in Australia has primarily been through in areas of high rainfall and elevation and most are development of alternative water sources including water approximately 40 years old. Most feasible sites in Australia for recycling and desalination. In contrast the development large-scale hydroelectric power generation have either been of new dams and water storage has remained relatively developed already or are not available for development due unchanged since 1990 (ABS 2010) and the opportunity for to sensitive environmental values of the area (A Bahadori, new large-scale hydroelectric infrastructure associated with G Zahedi & S Zendehboudi 2012). As such, the opportunity new dams is expected to be limited. for new large scale hydroelectric generation in Australia is limited, however the ability to utilise existing electrical The largest surface water providers supplying municipal infrastructure at these facilities represents an opportunity water in Australia are Melbourne Water, Sydney Water and

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR to reduce balance of system costs for additional co-located SEQwater. These are businesses owned by their respective renewable energy sources. In particular the opportunity for state government, who manage the supply of bulk water large-scale floating solar shows promise through both the to either retailer water authorities (such as in Melbourne) or ability to use existing electrical infrastructure and also large directly to the customer (Tohmatsu 2014). water reservoirs at these sites. APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW Energy Demand The energy consumption for raw water supply is predominantly through pumping. The energy intensity Existing electrical infrastructure is highly variable and depends on the pumping distance at hydroelectric facilities required and geography, as well as the source of the raw may have good potential for water supply. Raw water obtained from groundwater has integration with technologies a higher energy demand than surface water captured such as floating solar in dams as it requires pumping to the surface, whereas dams are generally located at high altitudes using natural hydrogeological conditions (S Cook, M Hall & A Gregory 2012). As a result the opportunity for renewable energy to offset energy demand is highest in ground water extraction, The trend for hydroelectric generation is in opportunities in whereas the opportunity to utilise water itself for the developing smaller schemes that do not require large dam generation of renewable energy exists primarily with surface infrastructure. These ‘mini-hydro’ plants installed on rivers water storage in dams and rivers. Alternative water sources and streams are becoming increasingly viable because of including water recycling and desalination are discussed their lower development costs, water requirements, and separately. their environmental footprint. As of 2012, mini-hydro plants accounted for only 2% of the total installed capacity of hydroelectricity in Australia.

44 energy supplysource forthepumpingapplication. facilities asrenewable isdependentupontheeligibilityof by GenexPower. Theclassification oftheoutputfrom these as the330MWKidstonPumpedStorageproject proposed conversion ofexistingwaterreservoirs atminingfacilitiessuch developments forpumpedstorageincludethoseutilising intermittent renewable energysources. Current proposed represents asignificant opportunityforenergystorageof reservoirs forlaterrelease forgenerationofelectricity hydro’ schemeswhereby waterispumpedtohigher storage The useofdamsandwaterstoragereservoirs for‘pumped of groundwater. is anotheropportunitytoutiliserenewable energyforpumping diesel operatedpumpstosolarorwindpowered electricpumps marketreview,As discussedintheinternational switchingfrom scale hydro. opportunities arelikelytobesmall- plants inAustralia.Mostnewhydro for newlarge-scalehydroelectric There arelimitedopportunities

45 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW DESALINATION

Desalination has increased in Australia due to climactic conditions and uncertain water supplies. In Australia wind generation has been used extensively to offset the energy requirements of desalination. Recent rainfall has meant there are no anticipated short-term plans for future expansion in the large- scale desalination sector.

Overview on standby due to increased levels of rainfall and will return to service during the next drought to provide water security The use of desalination to produce potable water in Australia to their city. has increased in the past decade due to growing populations and changing climatic conditions (including prolonged Across Australia, desalination plants are generally used to periods of drought). In Australia, there are 6 seawater augment the municipal water supply during periods of below desalination plants using reverse osmosis to produce potable average rainfall with the treatment energy for these rainfall water with various different ownership and operator models independent sources making up more than 40% of the total shown in Table B1. energy for water supply treatment and pumping (S Cook, M Hall & A Gregory 2012). For example, Sydney’s Kurnell These desalination plants are some of the ‘greenest’ in the desalination plant becomes operational when Sydney Water’s world due to solar and wind energy offset projects that catchment dams reach 70% of capacity (S Cook, M Hall & A were undertaken as part of the plant construction (Rowley & Gregory 2012). Palmer 2014). Some of the desalination plants are currently

STATE VIC SA NSW QLD WA Number of plants 1 1 1 1 2 Capacity 150 100 91 46 50 + 100 (GL/year) Annual power 748 502 456 243 228 + 256 usage (GWh) Owner Aquasure SA Water Private investment Gold Coast City Water Council and state Corporation (state government government) Operator Aquasure ACCIONA Agua Veolia Veolia Degrémont and and Trility Water Corp Alliance

Table B1 - Australia’s desalination plants

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR *data from National Centre of Excellence in Desalination Annual Report 2013/2014 and D Doepel, R Pashley, R Barnett, S Humphries & A Hall, 2012

APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW Energy Demand Producing potable water through desalination of seawater The highest energy consumer in desalination plants is the uses ten times as much as energy as obtaining water reverse osmosis process, where salt water is passed through from traditional water sources (surface water, dams and semi-permeable membranes to remove dissolved solids, groundwater) as can be seen in Table B2 below (S Cook, M including dissolved salts (D Doepel, R Pashley, R Barnett, S Hall & A Gregory 2012). Humphries & A Hall 2012).

LOCATION MELBOURNE NEW SOUTH WALES SOUTH EAST WESTERN QUEENSLAND AUSTRALIA Traditional water 0.45 0.44 0.37 0.54 sources (kWh/kL) Desalination (kWh/kL) 5.62 4.43 4.02 5.33 – includes pumping

Table B2 - Estimated energy intensity of traditional water supply and desalinated water supply

46 and reduce thenetenergydemandofdesalinationplants investigating howrenewable energycanshare infrastructure considerable research anddevelopmentactivityinto The energyissuesaround desalinationhaveprompted Generator List-March 2014)]. wind farm[(Waterlines 2008),(GHD2012),(GreenPower purchases electricitygeneratedfrom the79MWEmu Downs farm atBungendore. Perth’s Kwinanadesalinationplant Sydney’s potablewaterdemand,isoffset bya141MWwind which hasthecapacitytoprovide approximately 30%of desalinationplant For exampleenergyuseattheKurnell plants inAustraliabyusingrenewable energycredits. constructed tooff-set thepowerdemandofalldesalination Renewable energypowerplantshavebeenspecifically Renewable Energy or GreenPower energy withrenewable energy have historicallyoffset their Desalination plantsinAustralia Australian plantisunder-utilised. and Queenslandare currently “moth-balled”andthe South NewSouthWalesvolumes, desalinationplantsinVictoria, to increased rainfallandtheconsequentincrease instorage desalination plantsinAustraliatheforeseeable future. Due There are currently noplanstodevelopadditionallarge SHumphries&AHall2012)]. R Pashley,Barnett, with renewable energysources [(Waterlines 2008),(DDoepel, desalination canbereduced andhowtheycanbecombined innovative solutionsincludinghowtheenergycostof of laboratoryandpilot-scaletestingforawiderange in Desalinationprovides fundingforthedevelopment desalination plants).TheNationalCentre ofExcellence desalination andcombiningwavepowergenerationwith (for exampleusingsolarorwindpowertodrivemembrane in Australia limited opportunitycurrently desalination capacityisa Additional largescale

47 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW WATER DISTRIBUTION AND RETICULATION

In Australia energy requirements for water supply are largely for pumping and treatment processes, and dependent on water source and location. Mini-hydroelectric generation is being investigated for offsetting this.

Overview As the water reticulation network in Australia is designed to meet unrestricted demand over critical periods of the Australia provides a high level of water quality to its day pumping is often required to maintain pressure for the population in metropolitan and regional centres. The key customer. Water pipelines conveying to customers have factor determining how much energy is used to supply water therefore traditionally been designed to have pipes capable is the length of reticulation pipework required to deliver of withstanding 160m pressure head and to maintain a the water to the consumer. If raw water is being supplied minimum residual pressure of 20m head for each consumer (L from dams in higher elevations then the energy demand Burn, D De Silva, R Shipton 2001). In Australia, the ownership can be reduced as the water can be distributed using gravity of the water distribution network varies by state as shown in pipelines not requiring pumping. Table B3 below.

STATE/ VIC NSW QLD SA WA TAS NT ACT TERRITORY Water 15 water Sydney Seqwater, SA Water Water TasWater Power Icon Water distribution authorities Water QUU, Unity and local Corporation and and Water pipeline and local Water councils councils Corp. owner councils and local councils Table B3 - Municipal water distributors in Australia

Energy Demand conditions and the distance of conveyance required. For example, during periods of below average rainfall pumping The energy demand for water supply (pumping and water greater distances may be required. Table B4 below treatment) in Australia in 2009/2010 was estimated to be shows the breakdown of energy used per unit of municipal between 0.37 to 0.65kWh/kL. The energy demand varies water supplied (S Cook, M Hall & A Gregory 2012). from location to location and is dependent on climatic

LOCATION SYDNEY MELBOURNE SOUTH EAST PERTH CANBERRA ADELAIDE NEWCASTLE QUEENSLAND

Water 0.57 0.38 0.64 1.1 0.5 0.78 0.45 supplied (kWh/kL) OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Table B4 - Energy per volume of water supplied for water distribution in Australia

Renewable Energy

APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW The use of mini-hydro plants on water distribution pipelines Depending upon the application of the hydroelectric to generate energy is a developing trend in Australia. installation, the output of the hydroelectric generator may Melbourne Water now has seven mini-hydro plants operating or may not be defined as renewable energy. Section 3B of at six different reservoirs and at Upper Yarra Dam that the Renewable Energy (Electricity) Regulations 2001 defines generate 55,000 MW/year of renewable energy. The power that any amount of electricity that is used to pump or raise is generated using the excess pressure head in the pipeline to water before its release for hydro-electric generation must turn turbines and generate electricity from the excess energy be considered as an auxiliary loss. As such, in effect while (G Rainsford 2010). many in-conduit hydro installations which act as pressure reduction devices are a prudent method of energy recovery SA Water produced 11,500 MW/year from its four mini-hydro in that specific part of the process, the initial pumping energy plants at Hope Valley, Seacliff Park, Adelaide Desalination requirements may exceed that generated and thus in this Plant and Winninowie tank in 2013/2014 (L Owens 2014). situation the mini-hydro is not considered as renewable Similarly Sydney Water have Prospect Mini Hydro and energy. Woronora Micro Hydro and North Head which provide 6,000 kW of energy (L Hiscock & A Sanbrook 2012).

Energy intensity of raw water There is growing interest and supply is highly dependent on use of mini-hydro in water water source and location in distribution applications Australia

48 Source GeoscienceAustralia). (AustralianGovernment, Figure B3-Mapofwastewatertreatmentplantsacross Australia Brisbane,Adelaide,Perth collected inSydney,Melbourne, and councils.Thetotalannualaverageofwaste-water private companiesunderagreements withwaterauthorities operated bywaterauthoritiesorcouncils ways across thenation,eitherbybeingdirectly owned and treatment plantsare ownedandmanagedindifferent for dischargetotheenvironment. Australia’s wastewater waste-water, andthentreat ittoastandard approved Across Australiatreatment plantscollectthepopulation’s Overview WASTEWATER TREATMENT interest inemergingpracticessuchascodigestionandalgaetreatmentprocesses. beforehand. Thereissignificant biogasutilisationalreadyinthewastewatersector, andgrowing Energy useinwastewatertreatmentdependsonbothlevelofandthepumpingrequired wastewater. commonly haveon-sitesepticsystemstotreat their townships thatare notconnectedtoaseweragenetwork Rural properties andremote communitiesoutsideof Abbott, BCohen&WWang 2011)]. per yearondrybasis[(Mehta,Tait &Batstone2012),(M which combinedproduces over400,000tonnesofbiosolids Australia hasover700communitysewagetreatment plants and Canberrais1,188,785ML/yearIncludingregional centres

49 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW Energy Demand • Secondary treatment – biological treatment to remove approximately 85% of organic load and reduce remaining Energy used for the treatment of municipal wastewater suspended solids. Typical processes include sand filtration, is predominantly in pumping to convey sewage to the disinfection, activated sludge processes, anaerobic and treatment plant, and then to power the various processes at aerobic processes, biological filters and lagoons (aerated, the treatment plant. The amount of energy used per GL of facultative, maturation and polishing) wastewater treated varies across Australia due to different • Tertiary treatment – to remove nutrients and greater distances between population centres and treatment plant than 95% of suspended solids. Typical processes include: locations and the various technologies and treatment biological nutrient removal plants, chemical dosing, required at the treatment plant. For example, Melbourne enhanced pond treatment, reverse osmosis, membrane has two main treatment plants that are a significant distance reactors and advanced filtration systems. from population centres requiring significant pumping, whereas Sydney’s treatment plants are located closer to The treating of wastewater to different levels (primary, residents. secondary or tertiary) has a substantial effect on the amount of energy used at the treatment plant. On average, energy Energy used treating wastewater at a treatment plant is intensity doubles between primary and secondary treatment dependent on the level of treatment that the wastewater will and doubles again between secondary and tertiary treatment undergo. These being: [(S.J. Kenway et al 2008), (S Cook et al 2012)].

• Primary treatment – to remove suspended solids. Typical A summary of the energy use per amount of wastewater can processes include through screens, clarification, grease be seen in Table B5 below (S Cook et al 2012). removal and sedimentation; followed by

LOCATION SYDNEY MELBOURNE SOUTH EAST PERTH CANBERRA ADELAIDE NEWCASTLE QUEENSLAND

Wastewater 0.5 0.86 0.8 2,982 0.84 1.04 0.64 energy intensity (kWh/kL)

Table B5 - Energy and wastewater use intensity in Australia by city (2009/2010) OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW

50 • • • • • • streams suchas: using biogas.Co-digestionistheadditionofotherwaste the required flowtoachievecost-effective energygeneration at smallerwastewatertreatment plantsthatmaynotreceive A potentialtrend inAustraliaisusingco-digestionespecially usage [(SCooketal 2012), (K Simmonds&J Kabouris 2012)]. the powergeneratedprovides 95%oftheplantselectricity Plan generates72GWh/yearofelectricityfrom biogas,and Water’sgenerating bioenergy.Melbourne WesternTreatment digestion, ofthese46(55%)plantsare capturingbiogasand of Australia’s wastewatertreatment plantshaveanaerobic is thenusedtodrivegeneratorsproduce electricity.84 60%–70% oftheenergycontentnaturalgas.Thisbiogas typically hasahighmethaneandenergycontent,about digestion ofwastewatersludge.Thebiogasproduced Biogas isproduced through anaerobic (“withoutoxygen”) wastewater treatment plants. produced from thesecondarytreatment ofsewageat Renewable energyiscommonlygeneratedusingbiogas Renewable Energy Residential/commercial foodwaste (organicsrubbishbins); Residential foodandgreen waste (viatruckedcollection); pump-outs); Greasy waste/fats,oilsand greases (FOG)(i.e.grease trap Paper/pulp waste; meat processing, dairy,brewery orwinery); Food anddrinkmanufacturer process waste(i.e.beverage, Municipal andindustrialprocess wastewater/sludge; using co-digestion waste-to-energy project currently developinga Yarra Valley Water are wastewater sector the Australianurban generation currently within 34MW ofbiogaselectricity There isapproximately • • at WWTP’s include: Other innovativetechnologiesproducing renewable energy • • Two ofthefirstco-digestionplantsinAustraliainclude: waste thatwouldotherwisegodirectly toland-fill. A furtherbenefitofco-digestionisthe reduced volumeof • 2015). risk ofalgalbloomsandpreventing evaporation(IPittaway performance withshadingofthewaste-waterreducing the the temperature ofthecells) andincrease treatment can improve solarperformanceby57%(byreducing Placing solarpanelsonwastewatertreatment plantlagoons 2014); Wateris beingtrialledbyMelbourne (PClark&PPretto be thenharvestedandusedasanenergysource. This Growing biomass(suchasalgae)atWWTP’s whichcan flows toproduce biogasforenergygeneration. will treat 0.1ML/doforganicwasteinadditiontosewage development attheAurora SewageTreatment Plantthat Yarra Valley Water’s Waste toEnergyisanewco-digestion 2014), (JDreyfus, SSmithetal2014)];and 55% to75%oftheplantspowerrequirements [(L,Owens liquid wastestreams) hasincreased powergenerationfrom which through theadditionofco-digestion(from other An existing50ML/dGlenelgWWTPinSouthAustralia, Simmonds &JKabouris2012). Food waste(from marketsorsupermarketchains)(K treatment wastewater alternative practices andalgaeasan and research inco-digestion There isgrowing interest

51 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW WATER RECYCLING

Water recycling is growing in Australia, but it has a high energy demand and there are few renewable energy opportunities with specific advantages.

Overview Energy Demand In Australia, increasing strain on traditional water sources is Treating wastewater to a water quality to re-use is typically driving alternative supplies of water to become more viable, done using membrane technology and/or UV treatment especially where the new sources are rainfall independent. and chemical dosing, these processes have a high energy The primary alternative water supplies include treating demand, ranging from 0.5 to 8.0 MWh/ML. The range is wastewater for re-use, capturing stormwater and treating it often dependent on the end user of the recycled water, through natural systems and using rainwater tanks attached for example the water quality required to re-use water for to roofs to capture rain-water. Australia is leading the world Wagga Wagga’s agricultural reuse scheme has an energy in researching and implementing water security initiatives led intensity treatment of 0.57 – 0.65 MWh/ML, whereas for by the Australian Water Recycling Centre of Excellence. This higher quality end uses such as industry and commercial is a national research organisation aimed at continuing to properties an energy intensity of 4MWh/ML or greater is enhance the efficiency, expansion and acceptance of water required. The distance from the treatment plant to the end recycling across Australia by investing in research projects, user also defines the amount of energy used as pumping may infrastructure projects and advising state and be required (C Mitchell, J Chong et al 2013). federal governments. In addition to wastewater, stormwater can also be recycled. Treating waste-water to a standard that can be re-used for As with wastewater, the energy demand of stormwater non-potable water uses is now common in Australia as it recycling is highly variable and dependent on a number of provides a source of water to augment the traditional water factors including: the quality of the incoming stormwater, supply that is rainfall independent. In 2009/2010 17% of the treatment required, and the end use. Many stormwater wastewater flows were treated, recycled and re-used for recycling systems have low (or zero) energy demand as they non-potable uses (Marsden Jacobs Associates 2012).Another are passive systems such as wetlands and raingardens. water treatment and water recycling source is through stormwater recycling. This is capturing and treating urban Renewable Energy rainfall and re-using it for non-potable uses. Estimation There are limited examples of renewable energy use of stormwater recycling volumes is inherently imprecise as associated directly with water recycling schemes in Australia it varies with location and climatic conditions and often and hence there is an opportunity to investigate possible substitute’s non-potable water uses and is therefore not options. measured (Marsden Jacobs Associates 2012).

Based on projects funded by the Commonwealth, and other projects reported by jurisdictions, there is capacity for 20.8GL per year of stormwater recycling within the next decade. Over half of this will be found in South Australia (10GL per

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR year), with contributions from New South Wales (5.4GL per year), Victoria (3.2GL per year) and the ACT (1.5GL per year). Currently Australia produces 700 GL of recycled water from waste-water treatment plants [(Marsden Jacobs Associates

APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW 2012), (Bureau of Meteorology 2015)].

52 low with approximately 50%ofwater divertedfor irrigation Traditionally, irrigationwater useefficiency inagriculture is on thetypeof farm, climaticconditionsand location. potential water useandenergyconsumption dependent have different characteristicsintermsofmanagement, Agricultural andirrigationsystems are highlyvariable,and market (NationalWater Market2015). be tradedtootherfarmsina similar mannertotheshare water accessentitlementand water allocationswhichcan South Australia,NewWales through andVictoria fair, efficient andsustainableusedeliveryofwateracross Australia. TheMurrayDarlingBasinAuthoritymanagesthe the Murray-DarlingBasin,islargestwatertradingarea in unconnected systemtoextensive,cross-state systemssuchas supply agriculturalirrigationtofarms,varyingfrom small Australia iscomposedofseveralseparatewatermarketsthat purposes (4,500GL). Wales isthelargestconsumerofwaterforagricultural [(ABS 2014),(NHarrington&PCook2014)].NewSouth from othersources suchasrecycled waterandtownsupplies (3,000 GL)andgroundwater (2,000GL)withtheremainder GL), on-farmdamsortanks(1,857rivercreeks orlakes was primarilyfrom irrigationchannelsorpipelines(4,400 The sources ofagriculturalwaterinAustraliafor2013/2014 other purposessuchaslivestockdrinkingwater. for agriculture isappliedtocrops and1,000GLisused for was usedbyfarmsinAustralia.11,000GLofthewater 2013 12,000GL(65percent ofallbulkwaterinAustralia) Australian Bureau ofStatistics(2014)estimatesthatin2012- irrigation predominantly insouth-eastAustralia.The these, 30,000are agriculturalbusinessesfarmingusing businesses inAustraliacovering400,000,000hectares. Of productive (TJackson2009).There are 129,000agricultural and irrigatedfarmlandcanbecometwice(orevenmore) as Irrigation playsakeyrole intheagriculture sectorof Australia Overview IRRIGATION ANDAGRICULTURE (ABS 2014) Figure B4-Sourceofagriculturalwaterin Australia electricity supplyordieselpoweredpumps. pumping. ManyAustralianfarmsareinvestigatingrenewableenergyalternativestoexistinggrid Irrigation accountsforaround65%ofAustralianwaterwithdrawals,usingenergyprimarilyin

The mainwaterrelated energyusefortheirrigationand Energy Demand (T Jackson,SKhan&MHafeez2010)]. water savingsofover2,500GLperyear[(TJackson2009), Australia’s irrigationtakesplace,withanaimtogenerate south-east Australia’s MurrayDarlingBasin,where 85%of of irrigationsystemsiscurrently beingundertakenin energy demandfrom pumpingthewater. Themodernisation inverse effect ofthischangeisthatthere isanincrease water islosttoevaporationandinfiltration.Howeverthe systems, there isimproved wateruseefficiency sinceless By changingfrom irrigationchannelsandditchestopiped in Australiabychangingtopressurised irrigationsystems. There isagrowing trend ofimproving agriculturalirrigation for water. of Australiacreating agapbetweenthesupplyanddemand has beenstrugglingduetoprolonged droughts insome areas application methods(TJackson2009).Theirrigationsector and designeddistributionsystemsinefficient field would belostfrom thesystemthrough poorlymaintained when theyare notactivelyirrigating. at certaintimes oftheyearandsignificantly loweramounts cropping cyclemeansfarmersusingahighamountofenergy Seasonal demandthroughout thevariousstagesof generation inthissector. have thepotentialtochange viabilityofrenewable Authority 2014),(StefanieSchulte, 2013)].Thesechanges prohibitively expensivetouse[(QueenslandCompetition charges leadingtosomeirrigationequipmentbecoming prices increased by30%from 2011to2012duedemand Similarly inNewSouthWales’ Riverinaregion, electricity that electricitypricesare likelytoincrease substantially. Queensland isbeingphasedoutoverseveralyears,meaning changing andthetariffs thatwere availableforfarmersin cheaper priceforelectricitythrough specialtariffs. Thisisnow In someareas ofAustralia,farmershavebeenreceiving a technologies. energy applicationscompared tothoserenewable energy cost rebates increase thecostcompetitivenessofdiesel within theexportmarket.Insomeinstances,diesel agricultural sectorinorder tomaintaincostcompetitiveness bythe The schemeisusedtoloweroperationcostsborne on theexciseandcustomsdutywhichistypicallycharged. costs withintheagriculturalsectorbyproviding arebate Currently, subsidisesdieselfuel theAustralianGovernment (ARM &NRNNorth2009)]. kWh/ML to500kWh/ML)[(NSWFarmersAssociation2013), of pumpingwaterisbetween$35and$80/ML(basedon200 for between50–80%ofafarmstotalenergybillandthecost demonstrated thatthewaterusedforpumpingcanaccount property’s accesstoagrid.Auditsofirrigationfarmshave grid suppliedelectricityordieselmotorsdependingonthe and around properties. Thisistypicallyundertakenusing agricultural sectorisinpumpingandconveyingwaterto

53 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW Renewable Energy businesses in Australia are using solar photovoltaic power, solar-thermal, wind power, and ground-sourced heat pumps Renewable energy opportunities within the agricultural and to either generate electricity or reduce their energy use. irrigation system in Australia are similar to those experienced There is also a significant use of plant and animal waste as a in the agricultural industry internationally, with significant fuel source including: opportunities in relation to renewable energy pumping solutions as well as the utilisation of bioenergy from crop • Eight sugar mills capturing 4,391,000 tonnes of bagasse and animal wastes. Notably, Australia has a long history and generating 198MW of electricity (Australian of renewable energy pumping solutions for groundwater, Government: Rural Industries Research and Development primarily through the historical use of windmills. Corporation 2013).

Developing renewable energy in agricultural businesses • There are currently 14 operational biogas sites at piggeries in Australia, capturing biogas through digesters, covered is dependent on their location, access to and cost of lagoons or mixed-pond systems (J Price 2014). conventional energy, energy use and what and how they farm (NSW Farmers Association 2014). Agricultural

The agricultural sector has renewable bioenergy feedstock including crop and animal wastes

The irrigation sector is subject to strongly seasonal energy demands representing good opportunity for energy storage

Off-grid and fringe of grid pumping applications, as well as changing electricity tariffs represent good opportunities for renewable energy integration OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B2 - AUSTRALIAN WATER MARKET LITERATURE REVIEW

54 AUSTRALIAN WATERAUSTRALIAN RENEWABLE MARKET ENERGY PROJECTS B3

55 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PHASE 1 & 2 FINAL DRAFT REPORT APPENDIX B3 – AUSTRALIAN WATER MARKET RENEWABLE ENERGY PROJECTS

EXISTING PROJECTS It should be noted that the identified projects from the Register of accredited power stations do not include for the In order to understand the current status of water sector following renewable energy applications which may exist specific renewable energy use within Australia an analysis within the water sector: was undertaken of the Register of accredited power stations as outlined in the Clean Energy Regulator REC registry. • Projects categorised under the Small-scale Renewable The results were filtered for those applications which were Energy Target (SRET) considered specifically attributable to water sector operations • Projects which use renewable energy directly as a heat and were filtered to only consider projects with the following source properties: For each of the identified projects, the installed capacity • Projects with fuel source identified as sewage gas or hydro; was determined based upon publically available and/or information. In order to provide an overview of the current • Projects with an account name specifically listed as a known status of installed renewable energy capacity in Australia, water sector organisation summary of the identified projects and their total installed capacity is provided in the following table.

STATE ACT NSW NT QLD SA TAS VIC WA TOTAL Biogas (Sewage Gas) Number 0 11 0 5 0 1 4 1 22 Installed 0.0 8.2 0.0 4.1 0 0.1 21.0 0.6 34.0 Capacity (MW) Hydro Number 1 31 0 10 2 39 21 3 107 Installed 1 2,878 0 159 3 2,302 754 10 6,107 Capacity (MW)

Table B6 –Existing biogas and hydro installations in Australia OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B3 - AUSTRALIAN WATER MARKET RENEWABLE ENERGY PROJECTS Although difficult to discern water large-scale solar installations specifically for water sector use, the following installations are notable examples listed within the Register of accredited power stations and also of innovative applications of solar specific to the water sector.

56 Table B8–Examplesofcurrentprojectinvestigations inthe Australian watersector provided inTable B8. applications identified inthe Australianwatersectoris development. Asummaryofthesignificant keytechnology projects were identified aseitherunderinvestigationand engagement process, anumberofrenewable energy During thecourseofliterature review andstakeholder PLANNED PROJECTS Table B7–Notablesolarinstallationsinthe Australian watersector Irrigation Agriculture & Irrigation Agriculture & Multiple Infratech Industries Corporation Sydney Water Boulder City ofKalgoorlie- Corporation BayWaterWide PROJECT OWNER Storage Wind Hydro Biogas Solar Thermal Solar PV TECHNOLOGY Pumped Storage Battery/Solar Large-scale wind Small-scale wind In-Conduit Algal Biomass - HeatRecovery Organic RankineCycle(ORC) Co-digestion Cogeneration Domestic HotWater Rollout Solar Pumping Ground Mount Floating Solar Rooftop –MultipleSectors APPLICATION WATER SECTOR& Installations Pumping Wind Installations Solar Pumping PV Installations Multiple RooftopSolar Solar Jamestown Floating Potts HillSolarPV Treatment PlantSolar CKB Wastewater Farm Community Solar Fraser Coast PROJECT NAME Ground Mount Ground Mount TYPE Wind Pumping Wind Solar Pumping Rooftop Floating Rooftop - 30kW –4MW <100kW 5 –200kW 5 –200kW Large-scale 5kW –100kW TYPICAL SIZE - Small-scale 10MW 800kW 10kW –4MW - <100kW renewable energyusewithin theAustralianwatersector. planning stage,suggestingthatthere islargepotentialfor The majorityofproject opportunities are inthefeasibilityor Few examples Few examples Few examples Few examples Multiple projects Few examples Few examples Multiple examples Multiple examples Few examples Multiple examples Multiple examples Few examples Multiple examples NO. PROJECTS Australia Wide Australia Wide Australia Wide SA NSW WA QLD LOCATION Feasibility Feasibility Feasibility Procurement Procurement Feasibility Trials/Feasibility Feasibility Procurement Trials/Feasibility Construction Procurement Feasibility Feasibility Feasibility Feasibility Feasibility Construction Procurement Feasibility STATUS Multiple Multiple Multiple TBA 60 150 400 CAPACITY (kWp) INSTALLED

57 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B3 - AUSTRALIAN WATER MARKET RENEWABLE ENERGY PROJECTS OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B3 - AUSTRALIAN WATER MARKET RENEWABLE ENERGY PROJECTS

58 INSERT APPENDIXB4PAGEINSERT INTERNATIONAL WATER ANALYSIS GAP MARKET B4

59 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PHASE 1 & 2 FINAL DRAFT REPORT APPENDIX B4 – INTERNATIONAL WATER MARKET GAP ANALYSIS

TECHNOLOGY MATURITY LEVEL Readiness Level (TRL) and the ARENA developed Commercial Readiness Index (CRI), to help communicate the level of A gap analysis was undertaken to compare the level of maturity of the particular technology specifically within the renewable energy development between the Australian and water sector. The modified combined Technology Maturity international water sector. The gap analysis was completed Level (TML) used for the gap analysis is shown in Figure B5. using a modified and consolidated rating scale of both the globally accepted benchmarking tool of Technology OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR

Figure B5 – Technology Maturity Level (TML) overview APPENDIX B4 - INTERNATIONAL WATER MARKET GAP ANALYSIS

GAP ANALYSIS RESULTS Following analysis, the specific technologies and applications were arranged in rank according to the A technology maturity gap analysis was undertaken and following level criteria: each technology was assessed for the following categories: • Level 1 Rank: Technologies primarily ranked in order of • Potential: Perceived potential to have impact on most potential from High to Low renewable energy use within the Australian water sector • Level 2 Ranking: Technologies secondarily ranked in • Technology Maturity Level: Rating as it relates specifically orde of Australian Technology Maturity Index from least to maturity within the water sector specifically for both mature to most mature Australia and internationally • Level 3 Ranking: Technologies thirdly ranked in order of international Technology Maturity Index from most mature to least mature

60 Table B9–Summaryofpriorityassessmentrenewableenergywithinthewatersector to improve technologymaturityandhaveanimpactonrenewable energyusewithintheAustralianwatersector. The resulting gapanalysisresults aimstopresent abroad overviewofthosetechnologieswhichrepresent thegoodopportunity CATEGORY Biogas Storage Storage Solar PV Biofuels TECHNOLOGY Biogas Storage Pumped storage Battery Storage Floating SolarPV Algal Biofuel High High High High High POTENTIAL 7 7 6 6 5 AUS. 7 8 5 INTL. 9 9 TML -1 -2 0 GAP -2 -2 International: Emerginguseoftechnology International: water sectorstakeholders. Significant interest intechnologyfrom treatment plantinSouthAustralia. installation atJamestownwastewater Australia: Initialdeploymentofsmallscale US. recent examplesinJapan,Korea andthe large-scale floatingsolarplants,including GrowingInternational: deploymentof treatment plantfacilityowners. Plant. Significant interest from wastewater Water’sMelbourne WesternTreatment and trialswithFlinder’s Universityat wastewater facilities,includingresearch Australia: Focusedresearch andtrialingat at wastewaterfacilities. FocusedresearchInternational: andtrialing COMMENT excess biogasproduction. predominant useofflaringtechnologiesfor Australia: Limitedbiogasstorageuse,with applications. plants andalsoinagriculturalbiogas implemented atwastewatertreatment treatment andagriculture. Biogasstorage sizes, forapplicationsinwastewater biogas storagetechnologiesinvarying useofmultiple Widespread International: from watersectorstakeholders. within thewatersector. Significant interest pumped storagefordemandmanagement established, withgoodpotentialforminor Australia: Smallpumpedstorageschemes pumped storageprinciples useofinto electricitynetworks.Widespread pumped storagefacilitiesproviding power useoflargescale Widespread International: stakeholders. Significant interest from watersector trials forintermittentpumpingapplications. water sector. Emergingtrialsforbatteryuse Australia: Noknownusespecifically within particularly foroff-grid applications. for supportofrenewable energy storage,

61 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B4 - INTERNATIONAL WATER MARKET GAP ANALYSIS Table B9 (cont.) – Summary of priority assessment of renewable energy within the water sector

TML CATEGORY TECHNOLOGY POTENTIAL AUS. INTL. GAP COMMENT Solar PV Solar AC High 7 9 -2 International: Growing widespread pumping application in remote agricultural pumping applications. Australia: Emerging applications in remote agricultural pumping applications. Significant interest from water sector stakeholders. Solar PV Solar PV/Diesel High 7 9 -2 International: Growing widespread Hybrid application in remote agricultural pumping applications. Australia: Emerging applications in remote agricultural pumping applications. Biogas Co-digestion High 7 8 -1 International: Significant growing use of codigestion in existing wastewater treatment facilities, including development of upstream supporting processes such as household waste segregation. Australia: Emerging interest in codigestion including codigestion trials at a few facilities. First large scale example planned for Yarra Valley Water as part of a waste- to-energy project in Wollert. Significant interest from water sector stakeholders. General Leasing High 7 8 -1 International: Multiple commercial land leasing applications exist within the water sector internationally, including leasing of water bodies for floating solar. Australia: Emerging commercial land leasing applications exist within the water sector, with significant interest from water sector stakeholders.

Solar PV Solar DC High 8 10 -2 International: Growing widespread Pumping application in remote agricultural pumping applications OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Australia: Emerging applications in remote agricultural pumping applications. Significant interest from water sector stakeholders

APPENDIX B4 - INTERNATIONAL WATER MARKET GAP ANALYSIS Wind Small-scale Wind High 8 10 -2 International: Established use across multiple industries including the water sector. Australia: Significant interest from water sector stakeholders. Limited examples of small-scale wind by water sector participants. Biogas Biogas High 8 10 -2 International: Widespread use in Cogeneration wastewater sector for large and small scale plants. Australia: Emerging trend of increasing use across wastewater plants using anaerobic digestion. Significant interest from water sector stakeholders. Biogas Biogas Heating High 8 10 -2 International: Widespread use in wastewater sector for large and small plants. Australia: Emerging trend of use across wastewater plants using anaerobic 62 digestion. Table B9(cont.)–Summaryofpriorityassessmentrenewableenergywithinthewatersector General Hydro Hydro Hydro Solar PV Solar PV CATEGORY Wind Biogas Biogas Biogas Large-scale Wind Biogas Pumping Distribution Precinct Biogas Compressed Management Demand Mini-Hydro Micro-Hydro In-Conduit Hydro Rooftop SolarPV Solar PV Ground Mounted TECHNOLOGY High POTENTIAL Med Med High High High High High Med Med 8 AUS. 5 4 4 3 9 8 8 8 8 9 9 9 9 10 10 INTL. 8 8 8 7 TML 0 -1 -1 -1 -2 -2 GAP -3 -4 -4 -4 International: Useoftechniquessuchasoff- International: Australia: Growing useof mini-hydro. useofmini-hydro. Widespread International: Australia: Growing useofmicro-hydro. useofmicro-hydro. Widespread International: applications. in-conduit hydro forpressure reduction examplesof Widespread International: with growing trend ofusebywaterauthorities. useofrooftopAustralia: Widespread solarPV, PV across anumberofwatersectors. useofrooftop Widespread solarInternational: from watersectorstakeholders. number ofwatersectors.Significant interest solar PVdirectly connectedtoloadsacross a Australia: Growing useofground mounted across anumberofwatersectors. mounted solarPVdirectly connectedtoloads useofground Widespread International: COMMENT stakeholders where loadscanbeaggregated. for desalination.Interest from watersector power consumptionplant,most notably across thewatersectorsforoffset of for theuseoflargescalewind technologies Australia: Increasingly widespread capability consumption plant. the watersectorsforoffset ofpower use oflargescalewindtechnologiesacross capabilityforthe Widespread International: within thewatersector. Australia: Noknownuseofthistechnology purposes. developing countriesforremote irrigation Hasbeenappliedprimarily in International: produced from wastewatertreatment plants. local pipingdistributionnetworksforbiogas Australia: Noknownapplicationsofdedicated produced from wastewatertreatment plants. piping distributionnetworksforbiogas Limiteduseofdedicatedlocal International: within thewatersector. Australia: Noknownuseofthistechnology sector asmostbiogasgeneratedisusedon-site. in landfillbiogas.Limitedapplicationwater use Demonstratedinternational International: convenient times.Demand pumping tomoveelectricalloadmore Australia: Useoftechniquessuchasoff-peak convenient times. peak pumpingtomoveelectricalloadmore

63 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B4 - INTERNATIONAL WATER MARKET GAP ANALYSIS Table B9 (cont.) – Summary of priority assessment of renewable energy within the water sector

TML CATEGORY TECHNOLOGY POTENTIAL AUS. INTL. GAP COMMENT Biomass Biomass Med 5 6 -1 International: Use in small scale off grid Gasification communities predominantly in undeveloped countries. Emerging research in large scale commercial gasification processes with some commercial applications. Australia: Limited use of gasification technology, with predominantly trial based focus. No known commercial examples using crop waste. Organic Organic Med 6 8 -2 International: Emerging potential applications Rankine Rankine Cycle for low grade heat recovery from biogas Cycle Waste Heat combustion residual heat. Recovery Australia: No known applications within the water sector, but some minor interest from water sector Solar Solar Thermal Med 6 6 0 International: Emerging use of solar thermal Thermal Pumping pumping applications, particularly in off-grid developing nations. Australia: No known commercial use of solar thermal pumping applications. Wind Wind/Diesel Med 8 10 -2 International: Growing widespread application Hybrid in remote agricultural pumping applications.

Biogas Bio Methane Low 4 7 -3 International: Some examples of biomethane production from biogas for uses such as vehicle fuel. Limited use in water sector due to consumption at source. Australia: No known applications within the Australian water sector. Biomass Biomass Low 4 4 0 International: No commercial applications, Desalination although individual technologies could be relatively easily combined to produce outcomes. Australia: No known applications. OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Ocean Ocean Thermal Low 4 4 0 International: No practical applications at Energy current stage. Conversion

APPENDIX B4 - INTERNATIONAL WATER MARKET GAP ANALYSIS Solar Solar Thermal Low 5 6 -1 International: Potential large scale projects Thermal Desalination being developed in Middle East. Emerging potential of small scale solar thermal for MED desalination processes. Australia: Some examples of emerging small scale applications, including current project by Sundrop Farms as part of the Port Augusta Expansion project for tomato horticulture. Ocean Tidal Energy Low 5 5 0 International: No practical applications at current stage. Australia: No practical applications at current stage.

Ocean Wave Energy Low 6 5 1 International: No practical applications at current stage. Australia: Pilot scale plant under development in Perth by Carnegie Wave Energy to produce desalinated water directly from wave energy. 250Kw wave energy plant scheduled to start in Victoria in late 2015 64 Table B9(cont.)–Summaryofpriorityassessmentrenewableenergywithinthewatersector including factorssuchastheability toinfluencetechnology the suitabilityoftechnology forARENAfocus, and additionalcriteriaare required inorder todetermine energy technologydevelopmentanduse,furtherevaluation presents anoverviewofthekeydifferences in renewable It shouldbenotedthatwhilsttheabovegapanalysis Storage Thermal Solar Geothermal Wind Hydro Storage Thermal Solar Solar PV CATEGORY Storage Thermal Heating Solar Direct Heating Geothermal Windpump Hydro Storage Mechanical Solar HotWater Instrumentation Remote Solar PV TECHNOLOGY Low POTENTIAL N/A N/A Low Low Low Low N/A NA NA NA 10 10 10 8 8 AUS. 9 INTL. NA NA 10 10 10 8 NA TML Criteria Analysis. of themulti-criteriaanalysisoutlined in analysis includingtheseconsiderationsisexplored aspart which existwithintheAustralianwatersector. Further development andthespecific barriersandopportunities 0 0 0 -1 GAP NA NA NA 0 hydropower asasignificant renewable energy SignificantInternational: globaluseof Australia: Establisheduseofmechanicalstorage examples inwatersector. storage technologies,howevernospecific Establisheduseofmechanical International: buildings. applications beingincommercial waterutility technology withinthewatersectorwithsome Australia: Minimaluseofsolarhotwater buildings. applications beingincommercial waterutility technology withinthewatersectorwithsome Minimaluseofsolarhotwater International: supply toremote useoftechnologyforAustralia: Widespread lighting applicationsacross thewatersector. for supplytoremote instrumentationand useoftechnology Widespread International: COMMENT storage applicationswithinthewatersector. Australia: Noknownexamplesofthermal storage applicationswithinthewatersector. Noknownexamples ofthermal International: expected benefit. Australia: Noknownexamplesofapplicationor within watersector. Limiteddeploymentanduse International: heating applicationswithinthewatersector. Australia: Noknownexamplesofgeothermal water sector. geothermal heatingapplicationswithinthe Noknownexamplesof International: for pumpingapplications. particularly intheagricultural&irrigationsector useofthistechnologyAustralia: Widespread irrigation sectorforpumpingapplications. technology particularlyintheagricultural& useofthis Widespread International: most largescalehydro Australia: Significant established industrywith resource. Appendix D–Multi-

65 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PHASE 1 & 2 FINAL DRAFT REPORT OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX B4 - INTERNATIONAL WATER MARKET GAP ANALYSIS

APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS ENGAGEMENT STAKEHOLDER - C APPENDIX OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR WATER AUSTRALIAN THE IN ENERGY RENEWABLE FOR OPPORTUNITIES 67 C STAKEHOLDER ENGAGEMENT PROCESS ENGAGEMENT STAKEHOLDER

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS APPENDIX C – STAKEHOLDER ENGAGEMENT PROCESS

STAKEHOLDER ENGAGEMENT ACTIVITIES Stakeholder Engagement and Knowledge Sharing Workshops Overview and Goals • Gain further detailed information and insights from In conjunction with the literature review, a water sector information gathered during the online survey stakeholder engagement process was undertaken to seek information and feedback directly from stakeholders as part • Bring together water sector stakeholders to share of the priority setting process. The stakeholder engagement knowledge on energy and renewables projects process consisted of the following activities: • Help to determine water sector stakeholder views on hypothesised ARENA priority areas • Online Survey • Achieve greater engagement between ARENA and the • Stakeholder Meetings and Interviews water sector • Stakeholder Engagement and Knowledge Sharing Workshops Online Survey In order to enable wide input and participation from the The primary goals and aims of the stakeholder activities are Australian water sector into the stakeholder engagement outlined as follows: process, an online survey was issued able to be completed by Online Survey and Stakeholder Meetings/ stakeholders wishing to participate in the study. Interviews The key details of the survey are outlined as follows: • Identify current energy use and practices • Understand renewable energy project investigations and activities • Understand barriers and opportunities to renewable energy use • Determine level of industry participation and cooperation

SURVEY DETAILS Platform SurveyGizmo® Distribution Medium Online project specific web link distributed by following mediums. Direct Email: Direct email of survey to 102 targeted survey participants. OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Social Media: Issue of survey medium by Beca company site on LinkedIn. Cross promotion on LinkedIn by Australian Water Association. Industry Bodies: Promotion via direct email and social media from industry bodies and associations to their membership base, including the Australian Water Association (AWA), Water Services Association of Australia (WSAA), National Irrigator’s Council (NIC), Irrigation Australia, NSW Farmers Association and Cotton Australia. Survey Participation Response Total: 121 responses (79 complete, 81 partial) APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS Sector Participation: Farming, Agriculture & Irrigation (38.5%) Water Utilities (33.3%) State/Federal Government (5.1%) Water Industry body or Association (2.6%) Council or Local Government (2.6%) All Others (18.0%) Table C1 – Stakeholder survey details

68 • • • • • following proponents andindustrybodies: stakeholders, face-to-facemeetingswere heldwiththe As wellasone-on-oneinterviewswithindividual were alsointerviewed. additional stakeholderswhowere interested inparticipating of industrybodies,waterauthoritiesandregulators, while Participants fortheinterviewswere selectedfrom a range stakeholders sector. guided bykeysectionsoftheonlinesurveyrelevant tothe of face-to-faceandtelephoneinterviews.Interviewswere interviews andmeetingswere conductedinacombination more focusedinformationfrom arangeofstakeholders. The meetings were conductedinorder togatheradditional and To complementtheonlinesurvey,stakeholderinterviewsand Stakeholder InterviewsandMeetings Figure C1–Workshopparticipants undertakeexercisesattheSydneyworkshop Table C2–Stakeholder workshopdetails Workshop Format Workshop Participants Workshop Dates WORKSHOP DETAILS Water utilities Water ServicesAssociationofAustralia Australian Water Association Special Interest Group) WaterInternational Association(Energy&Greenhouse National IrrigatorsCouncil(EnergySubcommittee) GoToMeeting onlinewebinarformat In person workshop facilitators. In additiontoabovewatersectorparticipants,theworkshopswere attendedbyARENA 13inperson,5webinar Melbourne: Sydney: 11inperson,1webinar Water SectorWorkshop Participants 1stJuly2015(9:00am–12:00pm) Melbourne: Sydney: 29thJune2015(9:00am–12:00pm) VALUE the followingtable. The detailsofeachtheworkshopsare outlinedbelowin attending. conference webinarforadditionalstakeholdersinterested in workshops were conductedin-personandalsoviavideo stakeholder engagementworkshopswere conducted.The sector asapartofthisstudy,twoknowledgesharingand In order toseekhighengagementwiththeAustralianwater Engagement Workshops Knowledge SharingandStakeholder results. meetings were incorporatedwithinthesurveyandinterview Information gathered from bothstakeholderinterviews and

69 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS Workshop Content • Technology Specific Discussion:Group focused discussion to identify applications, barriers and opportunities associated The workshops were conducted in an open and with specific renewable energy technologies including collaborative manner in order to facilitate discussion and solar, wind, hydro and bioenergy. In-person attendees exploration of opportunities and barriers to renewable participated by group discussion, whilst webinar attendees energy use. Throughout the workshop, in-person and record input by webinar chat functionality. Results were webinar attendees actively participated in knowledge recorded on large butcher’s paper during the session for sharing presentations and exercises. An overview of the in-person attendees and by chat logs for webinar attendees. structure of the workshops is provided as follows. • Barriers Workstation Exercise: Rotating workstation exercise to identify major barriers to renewable energy use in the Knowledge Sharing categories of financial, technical, regulatory and general/ Material was presented during the workshop to help other. In-person attendees participated by rotating around stimulate knowledge sharing and education of attendees to workstations in small groups whilst webinar attendees on renewable energy projects and technologies. recorded input by webinar chat functionality for each Specifically, the following information was presented with category when prompted. Results were recorded on large a focus on knowledge sharing: butcher’s paper during the session for in-person attendees and by chat logs for webinar attendees. • Presentation by Sonoma County Water Agency on their • Priority Ranking Exercise: In-person participants are ‘Carbon Free Water’ program provided a hardcopy worksheet and asked to rank the • Presentations by Sydney Water and Melbourne Water, at hypothesised priority areas according to their preferences, the Sydney and Melbourne workshops respectively, on as well as identify any new suggestions for priority areas renewable energy use within their businesses for ARENA’s consideration. Webinar attendees provided responses correlating to their preferences by webinar chat • Technical overview of renewable energy and enabling functionality. technologies. Throughout the workshops, participants were actively Multi-Criteria Analysis – Stakeholder Inclusion encouraged to share knowledge with all other workshop Stakeholder participation was included for the renewable participants. energy multi-criteria analysis conducted as a part of this study. Workshop Exercises Workshop exercises were provided to help stimulate discussion and encourage participation from attendees. All workshop exercises were able to be participated either in-person or via webinar. The following workshop exercises were completed during each workshop. OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS

70 Table C3–Summaryofstakeholderengagement results(Energyuseandpractices) * Dataresultsobtaineddirectly fromsurveyresponsedata. are presented asfollows. A summaryofkeytrends andoutcomesderivedfrom thesurveyresponses, stakeholderinterviewsandworkshops Energy UseandPractices STAKEHOLDER ENGAGEMENTRESULTS Awareness Financing Renewable Energy Industry Participation Potential) (Greatest Perceived Renewable Energy Benefit) Storage (Perceived Energy Focus Flexibility Management Demand Seasonality Energy Use Demands Main Energy Main EnergySources Energy UseandPractices CATEGORY Medium (>50%aware) * High * • • • • • • • • • • Strong * optimisation. management fortime-of-usetariff Flexibility demonstratedthrough demand High * levels. upon waterconsumptionandsurface Loads indicatedtovarydependingprimarily Mixed * • • pumping applications. Diesel useisprimarilyonlyusedforoff-grid margin. significant energysource byconsiderable Grid electricitysupplyindicatedtobemost • • URBAN WATER STAKEHOLDERS Wind * Wind Energy StorageTechnologies/Practices * Hydroelectricity * Biogas * Solar PV* Mechanical Storage:Low/None* Biogas Storage:Medium* Pumped Storage:Medium* Thermal Storage:Low/None* Battery Storage:High* Blowers/Fans * Electric Water PumpingLoads* Diesel/Petrol/LPG * Electricity (gridsupplied)* upon crop cycles. with noirrigationrequirements depending as crop production. Significant periodsoftime upon seasonalityoffarmingapplicationssuch Loads indicatedtovarysignificantly depending Strongly Seasonal* • • energy pumpingtechnologies. opportunity foroff-grid small-scalerenewable of dieselforpumpingapplicationspresent supply forpumpingapplications.Highuse Grid electricitysupplycomparabletodiesel • • AGRICULTURE/IRRIGATION STAKEHOLDERS Low (<20%aware) * Medium/High * • • • • • • • • • • Medium * water storagecapacity. management flexibilityvariesdependingupon evaporation duringdaylighthours.Demand limitations onirrigationtimingtoavoidpeak Main impactsondemandflexibilityinclude High * Diesel Water PumpingLoads* Electric Water PumpingLoads* Diesel/Petrol/LPG * Electricity (gridsupplied)* Solar Thermal* Energy StorageTechnologies/ Practices* Biofuels * * Wind Solar PV* Mechanical Storage:Low/None* Biogas Storage:Low/None* Pumped Storage:Medium/High* Thermal Storage:Low/None* Battery Storage:High*

71 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS Renewable Energy Investigations An overview of the level of interest and current consideration by stakeholders of different renewable energy technologies is shown on the following graphs where stakeholders indicated whether they have implemented, considered or never considered different applications of solar, wind, hydro and bioenergy technologies.

STAKEHOLDER FEEDBACK – WIND TECHNOLOGIES

100% 5% 3% 3% 8% 10% 10% 17% 90% 24% 13% 24% 24%

OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR 20% 20% 80% STAKEHOLDER FEEDBACK – WIND TECHNOLOGIES

100%70% 3% 3% 8% 5% 10% 61% 10% 61% 17% 90%60% 24% 13% 24% 24% 20% 20% 80%50% 90% APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS 84% 83% 40%70% 77% 76% 76% 76% 70% 61% 61% 60%30%

50%20% 34% 31% 90% 84% 83% 40%10% 77% 76% 76% 76% 70%

30%0%

20% Urban Urban Urban Urban Urban 34% 31% Agriculture Agriculture Agriculture Agriculture Agriculture 10% WIND SMALL LARGE WIND / WINDMILL (ALL) SCALE SCALE DIESEL PUMP 0% WIND WIND HYBRID (MECHANICAL) (ELECTRIC) (ELECTRIC) (ELECTRIC) Urban Urban Urban Urban Urban Never Consider Considered Installed Agriculture Agriculture Agriculture Agriculture Agriculture

WIND SMALL LARGE WIND / WINDMILL 72 (ALL) SCALE SCALE DIESEL PUMP WIND WIND HYBRID (MECHANICAL) (ELECTRIC) (ELECTRIC) (ELECTRIC)

Never Consider Considered Installed 73 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS BARRIERS AND OPPORTUNITIES A summary of the themed barriers identified by stakeholders is provided below for general and technology specific barriers.

Table C4 – Summary of stakeholder engagement results (barriers) * Data results obtained directly from survey response data.Current Projects and Investigations

CATEGORY URBAN WATER STAKEHOLDERS AGRICULTURE/IRRIGATION STAKEHOLDERS General and Sector Specific Financial Electricity Tariffs: Relatively cheap electricity Off-Grid Diesel Use: The significant proportion rates for large water utilities are a barrier in of expensive off-grid diesel pumping that they lower the return on investment for applications is favorable to promote financial renewable energy projects offsetting grid viability of renewable energy alternatives. electricity. Electricity Tariffs: High electricity tariffs and Financial Justification: Water utilities must justify demand capacity charges are favorable to increased costs of services to stakeholders promote financial viability of renewable energy and can typically not justify projects by triple alternatives. bottom line outcomes.

Price Forecasting: Lack of certainty around electricity and Renewable Energy Certificate (REC) pricing makes project viability uncertain. Technical Demand/Load Matching: The output of Demand/Load Matching: The output of renewable energy technologies does not align renewable energy technologies does not align with demand requirements. Inadequate storage with demand requirements. Inadequate storage exists to overcome this barrier. exists to overcome this barrier.

Demand Seasonality: Significant demand seasonality for energy use due to agriculture increases payback period due to low value use or export of excess electricity generation from installed renewable capacity.

Knowledge: Availability of knowledge and in-house capability to assess renewable energy projects makes it difficult to ascertain project viability. OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Regulatory Wheeling: Inability to allocate exported Grid Connection: High cost and uncertain renewable energy to other sites by a wheeling requirements of grid connection creates project arrangement reduces project viability. risk.

Grid Connection: High cost and uncertain requirements of grid connection creates project risk. APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS Other Core Business: Renewable energy generation Core Business: Renewable energy generation is not core business and is often seen as a is not core business and is often seen as a distraction or complication to core operations distraction or complication to core operations and maintenance activities. and maintenance activities.

74 * Dataresultsobtaineddirectlyfromsurveyresponsedata.CurrentProjectsandInvestigations Table C4(cont.)–Summaryofstakeholderengagementresults(barriers) Wind Hydro Solar PV Technology Specific CATEGORY Other (10%)* Technical/Performance Issues(17%)* Cost (58%)* Barriers URBAN WATER STAKEHOLDERS technologies. in comparisontootherrenewable energy acceptance issuescitedasmajor barrier Significant regulatory and community output todeterminereturnon investment. make itdifficult todetermine generation Issues regarding knowledgeofwindresource Technology isnotapplicable(15%) Regulatory (15%)* Technical/Performance Issues(23%)* Cost (31%)* Barriers applications are notfeasible. geographical limitationsmeanmany Applicability tooperationsandtopographical/ output flowindrought conditions. particularly consideringuncertaintyregarding to returnoninvestmentare notfavourable Indicated thatfinancialbarriersin relation Other (12%)* Knowledge (12%)* Technology isnotapplicable(17%)* Technical/Performance Issues(15%)* Cost (40%)* Barriers to export. adequate valueforanyexcessgenerationdue inability tostore electricity forlateruseorgain relate totheintermittency of supplyand Technical andperformanceissuesprimarily management approval. and returnoninvestmentwere toolowfor capital costmeantthatpaybackperiod Many stakeholdersidentified thatsolarPV required toovercome thesebarriers. knowledge onperformanceandtechnologyis and technicalmaturitysuggestthatgreater barriers particularlyinareas ofknowledge respondents. Greater spread ofperceived barrier compared totheurbanwatersector Fewer stakeholdersidentified costas a Technical Maturity(10%)* Regulatory (10%)* Knowledge (10%)* Technical/Performance Issues(23%)* Cost (37%)* Barriers AGRICULTURE/IRRIGATION STAKEHOLDERS nature. wind andtheperceived barriersare broad in Majority ofstakeholdershavenotconsidered Technology isnotapplicable(13%)* Knowledge (23%)* Cost (27%)* Technical/Performance Issues(37%)* Barriers applications are notfeasible. geographical limitationsmeanmany Applicability tooperationsandtopographical/ develop hydro installations. not havesuitablemeansorhydro resource to Most independentfarmersandirrigatorsdo Other (10%)* Technical/Performance Issues(10%)* Cost (13%)* Technology isnotapplicable(30%)* Knowledge (37%)* Barriers to export. adequate valueforanyexcessgenerationdue inability tostore electricity forlateruseorgain relate totheintermittency of supplyand Technical andperformanceissuesprimarily

75 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS Table C4 (cont.)– Summary of stakeholder engagement results (barriers) * Data results obtained directly from survey response data.Current Projects and Investigations

CATEGORY URBAN WATER STAKEHOLDERS AGRICULTURE/IRRIGATION STAKEHOLDERS Biogas Barriers Barriers Cost (35%)* Cost (27%)* Technical/Performance Issues (17%)* Technical/Performance Issues (27%)* Technology is not applicable (15%)* Knowledge (23%)* Other (25%)* Technology is not applicable (17%)* Technology Maturity (10%)* Majority of stakeholders have not considered Significant number of stakeholders reported biogas and the perceived barriers are broad in that insufficient biogas production is a m ajor nature. barrier to project viability affecting payback Biogas opportunities primarily identified in and economies of scale. relation to livestock agriculture, particularly Significant expected potential for opportunities for practices of high density livestock where which increase biogas production such as waste collection such as manure is centralised. codigestion. Barriers identified to waste collation in broad acre practices. Technology maturity issues identified related to algal biomass projects which are considered a research field with no commercial demonstration of viability.

The following word cloud presents data visualisation of the responses from survey stakeholders who identified current renewable energy projects and investigations. Common themes and recurring themes amongst respondents are shown in larger font proportional to their occurrence. OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS

Figure C2 – Summary of stakeholder renewable energy projects

76 • • • • • • renewable energyprojects andinvestigations: In general,thefollowingtrends were observedforcurrent feasibility stage. The majorityofallprojects identified were intheproject solar installationintheorder of12.5MW. with thelargestproject identified beingapotentialfloating The majorityofprojects identified are small-scale(<1MW) biogas production. sector forfeasibilityevaluationofco-digestionimproved Significant interest wasidentified withintheurbanwater sector forfeasibilityevaluationoffloatingsolar. Significant interest wasidentified withintheurbanwater opportunities identified forwindandhydro opportunities. sector were forsolarPVorbiogasprojects, withfewer The majorityofprojects identified withintheurbanwater various applicationsormini-hydro forirrigationschemes. agricultural/irrigation sectorwere solarPVtechnologyfor All projects identified bysurveyparticipantswithinthe selected forpreferred priorityareas isdeterminedasbelow. summary ofthemeanrankingswhichworkshopparticipants interviews. Fortheworkshoppriorityarea rankingexercise, a included withtheresults from theonlinesurveysand were recorded andsummarisedwhere applicable The results oftheexercises completedduringthe workshops Priority RankingExercise Priority Areas -Workshop Results provided in A detailedsummaryofstakeholderengagementresults is Appendix C-StakeholderEngagementProcess .

77 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS Figure C3 – Summary of workshop participant priority area hypotheses ranking OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS

78 mean rankingrangesbybothurbanwaterandtheagriculturalsectors. A matrixsummaryoftheperceived importanceoftheinitialpriorityarea hypothesesispresented belowbycategorising • • suggestions proposed byworkshop participants. following provides asummary ofthosepriorityareas and or considerationswhichtheybelievetobebeneficial.The participants were askedto identify anynewpriorityareas In additiontothehypothesisedpriorityareas, workshop Workshop Proposed PriorityAreas • • • • workshops: the priorityarea rankingexercise undertakenduringthe The followingtrends were identified from the results of Table C5–Summaryofworkshopparticipantpriorityareahypothesesrankingbyimportance (Mean Rank>6) Low Priority (4.5

79 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS STAKEHOLDER ENGAGEMENT – KEY OUTCOMES A summary of the key outcomes and findings of the stakeholder engagement stage is provided by technology category in the table below.

Table C6 – Stakeholder engagement key outcomes summary

RENEWABLE ENERGY URBAN WATER AGRICULTURE & IRRIGATION Solar PV High interest in solar PV technology, with a High interest in conventional solar PV significant uptake in conventional solar PV technology, however with a much lower applications including rooftop and ground installation rate compared to the urban water mount. sector. Typically the cost of electricity is higher There is a significant interest in floating solar for the agricultural sector than that of the applications, however with very limited uptake urban water sector, and hence reduced uptake aside from one installation in Jamestown, is likely to be for reasons other than lower SA. Stakeholder feedback suggests that little return on investment. information is known about the technical There is limited interest in both floating solar performance and benefits of floating solar applications and solar/diesel hybrids, with the making feasibility assessment challenging. vast majority of respondents never considering Limited interest in solar/diesel hybrid likely due these technologies. Lower interest is expected to good access to electricity grid. to be primarily due to lack of knowledge of technology as well as lower applicability due to no presence of existing infrastructure such as dams or diesel generating sets for many respondents. Bioenergy High interest in biogas with a high uptake in Low interest in bioenergy technologies with no applications including cogeneration and direct responded examples of use of bioenergy from heating. survey respondents. Applications of co-digestion and biogas storage Vast majority of respondents have not show lower uptakes and consideration and considered bioenergy applications, likely due to may represent good opportunities to increase reasons of the lack of a bioenergy resource and viability of biogas embedded power generation knowledge of the technology. on sites where feasibility of the project is Agricultural interest in bioenergy is reduced due to low biogas production. predominantly limited to waste streams Despite moderate interest in biofuel and algal associated with high density livestock or technologies, uptake is still low and primarily consolidated crop wastes. limited to research and trials as this technology is not yet commercially demonstrated at large scale. OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR Hydro High interest and moderate uptake in small- Low interest in hydro opportunities with scale hydro. Highest interest in in-conduit majority of respondents indicating that the hydro correlating with lowest uptake technology is not applicable to their business. suggesting that this is an emerging area of Low uptake of hydro applications, limited interest to water utilities. primarily to large scale irrigation authorities for Low interest in larger scale hydro (>1MW) irrigation distribution. suggesting that fewer larger hydro

APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS opportunities exist within the market with most already being realised. Wind High interest in small-scale wind but with Low interest in electricity generating wind very low uptake with cost, regulatory and technologies overall. Moderate uptake of direct performance barriers noted as main reasons. windmill applications for pumping. Technical/ Low interest in large-scale and wind/diesel performance issues noted as primary barrier, hybrid technologies. suggesting that challenges may lie with technology knowledge and also intermittency of supply.

80 Table C6(cont.)–Stakeholderengagementkeyoutcomessummary Storage Biomass Geothermal/Ocean/ RENEWABLE ENERGY pumped hydro storage. moderate perceived benefitofbothbiogasand High perceived benefitofbatterystorageand significant opportunitiestothewatersector. All technologiesnotexpectedtopresent ocean andbiomassenergytechnologies. Low interest andactivityingeothermal, URBAN WATER application. irrigation applicationswhichare seasonalin intermittency andinfrequency ofmany viewed asimportantinovercoming Benefit ofstoragetechnologies/applications storage. moderate perceived benefitofpumpedhydro High perceived benefitofbatterystorageand indicated littleinterest oractivityinthisarea. the agriculturalsector, howeverrespondents of energycrops maypresent somepotentialto Availability ofbiomassfrom crop wasteanduse the watersector. expected topresent significant opportunitiesto Geothermal andoceantechnologiesnot and biomassenergytechnologies. Low interest andactivityingeothermal,ocean AGRICULTURE &IRRIGATION

81 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR PHASE 1 & 2 FINAL DRAFT REPORT OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX C - STAKEHOLDER ENGAGEMENT PROCESS MULTI-CRITERIA ANALYSISMULTI-CRITERIA D

83 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX D - RENEWABLE ENERGY OPPORTUNITIES MULTI-CRITERIA ANALYSIS APPENDIX D – RENEWABLE ENERGY OPPORTUNITIES MULTI-CRITERIA ANALYSIS

MULTI-CRITERIA ANALYSIS (MCA) PROCESS • Biomethane (Pipeline) Overview and Goals • Compressed Biogas In order to further substantiate the literature review and • Algal Biofuel stakeholder engagement process a multi-criteria analysis • Waste Heat Recovery (Organic Rankine Cycle) (MCA) was undertaken. The initial phase of the MCA was • Battery Storage undertaken internally, with the intent to determine the analysis criteria and to perform an independent evaluation • Pumped Storage of the various renewable energy opportunities with respect • Mechanical Storage to ARENA’s stated goals and objectives, for later comparison with external water sector stakeholders. • Demand Management • Floating Solar PV In this initial stage the technologies and practices for evaluation were selected. Additionally, the performance • Micro-Hydro criteria were selected and weighted to help return feedback • Biomass Desalination reflecting ARENA’s legislated objectives. • Solar Thermal Desalination Renewable Energy Opportunities • Biogas Precinct Distribution In order to provide sufficient coverage of the available • Aggregation/Collaboration renewable energy opportunities, 31 different technologies and practices were chosen for assessment. These were • Rooftop Solar PV selected across a broad spectrum of renewable energy • Ground Mounted Solar PV options in order to provide sufficiently detailed feedback to form a solid knowledge base. These opportunities were • Solar PV Remote Instrumentation identified as follows: • Solar Hot Water (Small Scale) • Renewable Pumping • Solar District Heating (Industrial) • Biomass Gasification (Thermal Gasification) • Large-scale Wind • Small-scale Wind • Geothermal Heating • Portable/Rapid Deployable (Leasing) • Thermal Storage • Biogas Storage • Precinct Heating (District Hot Water) • Biogas Cogeneration • EVs and Hydrogen Mobile Plant • Biogas Heating • EV Charging Stations OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX D - RENEWABLE ENERGY OPPORTUNITIES MULTI-CRITERIA ANALYSIS • Anaerobic Co-Digestion

84 stakeholder engagement whileallowingacomparison of These were heldwiththepurposeofallowing agreater workshops were heldwithselectwatersectorstakeholders. In additiontothein-housemulti-criteria analysis,additional Stakeholder Inclusion stakeholders. as abaselinecomparisontofeedbacksoughtfrom different An initialin-houseassessmentwascarriedoutinorder toact In-House Assessment MULTI-CRITERIA ANALYSISRESULTS opportunities were believedtorepresent thehighestvalue. “High” and“Very High”tohelpidentify whichofthose “Low”, “Low/Medium”,“Medium”,“Medium/High”, into sevenoverallperformancepotentialscores: “Very Low”, for eachtechnology.Theseaggregated scores are divided with theassignedratingofeach,toprovide atotalranking These individualcriterionrankingswere used,inconjunction opportunity. and “High”inorder tounderstandtherelative valueofeach assigned. Theserankingswere “None”,“Low”,“Medium” each ofthetechnologicalfields,fourpossiblerankingswere In order tosimplify therankingofvariouscriteriain Ranking technologies inthewatersector. Thefivechosencriteriawere identified asisdetailedbelow: then weightedtorepresent theeffect ofeachcriteriononthepotentialforittoimpactfuture uptakeoftheindividual objectives through thevarioustechnologies.Fivecriteriawere chosentocovertherequired areas ofassessment.Thesewere The performancecriteriafortheMCAwere choseninorder toallowtheassessmentofARENA’s abilitytoachieveitslegislative Performance Criteria Table D1–Multi-criteria analysisperformancecriteriaselection Other Portfolio Fit withARENA Influence ARENA Investment Potential forGrowth Likely Scaleby2030-40 CRITERIA PERFORMANCE • • For Example: • • • • • • • • • CRITERIA BREAKDOWN Current levelofcommercial development Secondary benefits Is potentialinfluencealready addressed incurrent portfolio? Ability forARENAtoimprove outcomesinthisarea increase penetration Ability foradvancesinknowledgetoincrease competitivenessand Level ofknowledgeandexperiencetoaddress barriers Potential forcostcompetitivenesstoleadhigheruptake Impacts ofbarrierstouptake Degree ofriskforpathtocompetitiveness Market Potential Technical Potential above indicatinggoodcorrelation. a considerablenumberofareas ofamedium/high priorityor priority areas. Itcanbeseenfrom theseresults that, there are MCA, ispresented below,alongwithoverallaveragesfor all Overall results fromMCAandstakeholder both theinternal Ranking Results • • • • • • industries. Thefollowingareas were suggested: additional priorityareas which were importantwithintheir During theMCA,stakeholderswere abletosuggest Addition SuggestedPriorityAreas agricultural andirrigationbackground. from boththeurbanwater utilityspaceaswellfrom an stakeholder involvement,industrybodieswere engaged initial industryevaluationwiththatofARENA.Asinprevious Biomass Gasification HeatRecovery Hydrogen Vehicles/Mobile Plant EV ChargingStations Wave Powered Desalination Compressed NaturalGasVehicles Electric Vehicles/Mobile Plant 22.5% 22.5% 22.5% 22.5% CRITERIA WEIGHTING 10.0%

85 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX D - RENEWABLE ENERGY OPPORTUNITIES MULTI-CRITERIA ANALYSIS Table D2 – Complete results from multi-criteria analysis

TECHNOLOGY/ OVERALL AVERAGE URBAN WATER AGRICULTURE & IN-HOUSE PRACTICE IRRIGATION Anaerobic High Very High Medium/High Very High Co-digestion

Renewable Pumping High Medium/High Very High High

Battery Storage High Very High Medium/High Medium/High

Floating Solar PV Medium/High Medium Medium/High High

Biogas Cogeneration Medium/High Medium Medium/High Medium/High

Pumped Storage Medium/High Medium/High Medium/High Medium/High

Biogas Storage Medium/High Low/Medium Medium Medium/High

Micro-Hydro Medium/High Medium/High Medium/High Medium

Rooftop Solar PV Medium/High Medium/High Medium/High Medium

Ground Mounted Medium/High Medium/High Medium/High Medium Solar PV

Biomass Gasification Medium/High Medium/High Medium Medium (Thermal Gasification) Biomethane Medium/High Medium/High Low/Medium Medium OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR

APPENDIX D - RENEWABLE ENERGY OPPORTUNITIES MULTI-CRITERIA ANALYSIS (Pipeline)

Algal Biofuel Medium/High High Medium/High Low/Medium

Demand Medium/High Medium Medium/High Low/Medium Management

Compressed Biogas Medium Medium/High Low/Medium Medium

Solar Direct Heating Low/Medium Low/Medium Medium/High Low (Industrial)

Portable/Rapid Low/Medium Very Low Low/Medium High Deployable (Leasing)

86 Table D2(cont.)–Completeresultsfrommulti-criteriaanalysis Biomass Desalination (Small Scale) Solar HotWater Mechanical Storage Instrumentation Solar PVRemote Cycle) (Organic Rankine Waste HeatRecovery Thermal Storage Distribution Biogas Precinct Biogas Heating Geothermal Heating Small-scale Wind Collaboration Aggregation/ Large-scale Wind (District HotWater) Precinct Heating Desalination Solar Thermal PRACTICE TECHNOLOGY/ Low/Medium Low/Medium Low/Medium Low/Medium Low/Medium Low/Medium Low/Medium Low/Medium Low/Medium OVERALL AVERAGE Low Low/Medium Low/Medium Low/Medium Low/Medium Low Low/Medium Low/Medium Low/Medium Medium Low Low/Medium Low/Medium Vey Low Low/Medium Low/Medium Low/Medium Low/Medium Medium URBAN WATER Low/Medium Medium/High Medium/High High Low/Medium Low Low/Medium IRRIGATION AGRICULTURE & Low/Medium Low Low/Medium Medium Medium Medium/High Very Low Low/Medium Low/Medium Low/Medium Low/Medium Medium Medium/High Medium/High IN-HOUSE Low Low Low Low Low Low Low/Medium

87 OPPORTUNITIES FOR RENEWABLE ENERGY IN THE AUSTRALIAN WATER SECTOR APPENDIX D - RENEWABLE ENERGY OPPORTUNITIES MULTI-CRITERIA ANALYSIS The results of the multi-criteria analysis were further assessed • Renewable pumping for those opportunities rated as medium/high or greater, • Bioenergy in wastewater and evaluated as to their potential based upon the trends and current status determined from the literature review and • Storage/demand management information gathered from the stakeholder engagement stage. • Solar PV In summarising those opportunities ranked ‘high’ and also • Micro-hydro categorising those opportunities which are ranked ‘medium/ An overview of the specific technologies and practices as they high’, it becomes evident that the highest ranked opportunities are related to these identified categories is outlined in Table D3. generally fall into five main categories including:

OPPORTUNITY CATEGORY RANKING TECHNOLOGY/PRACTICE Renewable Pumping High Renewable Pumping Bioenergy High Anaerobic Codigestion Medium/High Biogas Cogeneration Medium/High Biogas Storage Medium/High Biomethane (Pipeline) Medium/High Algal Biofuel Medium/High Biomass Gasification Storage/Demand Management Medium/High Battery Storage Medium/High Pumped Storage Medium/High Demand Management Medium/High Biogas Storage Solar PV Medium/High Floating Solar PV Medium/High Rooftop Solar PV Medium/High Ground Mount Solar PV Micro-Hydro Medium/High Micro-Hydro

Table D3 – Categories of highly ranked opportunities from multi-criteria analysis

BECA CONSULTANTS PTY LTD | ABN: 45 003 431 089