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Renewable Desalination Market Analysis: Oceania, South Africa, Middle East & North Africa

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Renewable Desalination Market Analysis: Oceania, South Africa, Middle East & North Africa www.prodes-project.org Renewable Desalination Market Analysis: Oceania, South Africa, Middle East & North Africa ProDes Project Chantel McGrath Work Package 5 Aquamarine Power Ltd Task 5.4 1 April 2010 Export Market Analysis www.aquamarinepower.com ACKNOWLEDGEMENTS This publication has been produced as part of the ProDes project. The logos of the partners cooperating in this project are shown below and further information about them and the project is available on www.prodes-project.org: ProDes is co-financed by the Intelligent Energy for Europe programme (contract number IEE/07/781/SI2.499059) The sole responsibility for the content of this document lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein. 2 www.aquamarinepower.com FOREWORD The ProDes project (www.prodes-project.org) brings together 14 European organisations that work together to support the use of Renewable Energy (RE) Desalination technology, particularly for off- grid communities with water scarcity and energy infrastructure issues. At present the main RE technology options for powering desalination (reverse osmosis or distillation technologies) are: solar thermal, concentrated solar power, photovoltaic, wind power, geothermal energy and ocean energy. The overall aim of the project is to support and promote the dissemination of RE-Desalination technology by effectively interacting with the following bodies: research institutes, universities, industry, small to medium size enterprises (SMEs), investors, public authorities and decision makers and civil society. Work package 5 of the ProDes Project aims to mobilise investment. This will involve communicating to the private and public investment community that RE Desalination technology is a potential and viable resolution to issues of water scarcity and climate change. Generating investment to provide the funding gap between start up technologies through to commercially viable projects is the key challenge. Aquamarine Power Ltd, Scotland, is a member of the ProDes consortium and has been asked to investigate task 5.4: Export Market Analysis (outside the EU). Three potential international desalination markets have been studied for export opportunities these include: the Middle East and North Africa (MENA) region, with a profile on Morocco; the OCEANIA region, with a profile on Australia; and SOUTH AFRICA, with an in-depth report. These regions and countries have been selected because they are experiencing water scarcity and climate change issues. Each report provides details on the economic and governmental structures, the power sector, renewable energy legislation, the water sector, recent investment and a summary of the renewable desalination market potential. The overall aim has been to immerse RE- Desalination developers in the economic, regulatory and market operations of each region so they can develop a balanced market view on the potential exportation opportunities. 3 www.aquamarinepower.com CONTENTS: ACKNOWLEDGEMENTS ........................................................................................................................... 2 FOREWORD ............................................................................................................................................. 3 INTRODUCTION ....................................................................................................................................... 8 OCEANIA ........................................................................................................ 9 EXECUTIVE SUMMARY ............................................................................................................................ 9 1. OVERVIEW OF OCEANIA ...................................................................................................................... 9 2. OCENIAN ENERGY SECTOR ................................................................................................................ 12 3. OCEANIAN WATER RESOURCE AND MANAGEMENT ........................................................................ 12 3.1 Water Legislation......................................................................................................................... 13 4. OCEANIAN FUNDING AND INVESTMENT .......................................................................................... 14 5. OCEANIAN RENEWABLE ENERGY RESOURCES .................................................................................. 16 5.1 Renewable Legislation ................................................................................................................. 17 6. OCEANIAN DESALINATION ................................................................................................................ 18 6.1 Desalination Projects ................................................................................................................... 18 6.2 The Renewable Desalination Sector ............................................................................................ 19 7. COUNTRY PROFILE: AUSTRALIA ........................................................................................................ 20 7.1 Australia: Energy Sector .............................................................................................................. 21 7.2 Australia: Grid Infrastructure ...................................................................................................... 22 7.3 Australia: Renewable Legislation ................................................................................................ 23 7.4 Australia: Water Sector ............................................................................................................... 24 7.5 Australia: Access to Water .......................................................................................................... 25 7.6 Australia: Water Legislation and Policy ....................................................................................... 26 7.7 Australia: Government ................................................................................................................ 27 7.8 Australia: Private Investment ...................................................................................................... 29 4 www.aquamarinepower.com 7.9 Australia: Desalination ................................................................................................................ 30 7.10 Australia: Renewable Desalination Projects .............................................................................. 31 7.11 Renewable Desalination Market Potential................................................................................ 35 SOUTH AFRICA ............................................................................................. 37 EXECUTIVE SUMMARY .......................................................................................................................... 37 1. OVERVIEW OF SOUTH AFRICA .......................................................................................................... 37 2. SOUTH AFRICAN ENERGY SECTOR .................................................................................................... 38 2.1 Grid Infrastructure ....................................................................................................................... 40 2.2 Renewable Energy Policy and Strategy ....................................................................................... 41 3. SOUTH AFRICAN WATER RESOURCE AND MANAGEMENT ............................................................... 42 3.1 Water resource and requirements .............................................................................................. 43 3.2 Access to Water ........................................................................................................................... 45 3.3 Water policy and strategy ........................................................................................................... 45 4. SOUTH AFRICAN FUNDING AND INVESTMENT ................................................................................. 46 4.1 Government Funding .................................................................................................................. 46 4.1.1 Renewable Energy Feed-in Tariff (REFIT).............................................................................. 48 5. SOUTH AFRICAN RENEWABLE ENERGY RESOURCES ......................................................................... 49 5.1 Wind Power ................................................................................................................................. 49 5.2 Solar Power ................................................................................................................................. 51 5.2.1 Solar Water Heating ............................................................................................................. 52 5.2.2 Solar Electricity ..................................................................................................................... 52 5.3 Wave Power ................................................................................................................................ 53 6. SOUTH AFRICAN DESALINATION ......................................................................................................
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