Transcript Document

Western Irrigation Futures
Customer Information Sessions
May 2010
Werribee Irrigation District
Today's discussion …
1. Key feedback from customer workshops and surveys
2. Key findings from WIF
– Bulk water
– Infrastructure options
– Environment
– On-farm management
3. Possible path forward
– Water and channel system
4. Next steps
– Customer reference group
– Next season
2
Recap…
WIF Atlas
Customer
Consultation
Technical Workshops
Bulk Water
Environment Infrastructure
On farm
Draft Options Paper
Detailed Technical Work
Final Options Paper
Government / Agency consultation
Today’s
3
discussion
Customer engagement and consultation
1. Customer Feedback
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What you told us you would like…
• Key Issues
– Fit-for-purpose water
– Sufficient volume to support historic production levels
– Water at affordable price, and
– Fix leaky channels
• Other concerns raised
– Farming viability
– Agricultural practices
– Future of the district
5
2. Key Findings:
Bulk Water
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Bulk water options investigated…
• River water
• Desalination of recycled water
– Reverse Osmosis (RO)
– Nanofiltration (NF)
– Electrodialysis Reversal/Ultra Violet
• Trading options
– North/South pipe line
– Macalister Irrigation District
• Metro water
– Water from Melbourne Pool via entitlement or supply agreement
• Recycled water
– Continuation of supply from WTP
– Enhancements
• Storage
• Increased flow rates
• Groundwater
• Storm water harvesting
7
River water supply – climate scenarios…
Lerderderg River Seasonal Inflows (at Sardine Creek)
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9
1/04/2010
1/03/2010
1/02/2010
1/01/2010
1/12/2009
1/11/2009
1/10/2009
1/09/2009
1/08/2009
1/07/2009
1/06/2009
1/05/2009
1/04/2009
1/03/2009
1/02/2009
1/01/2009
1/12/2008
1/11/2008
1/10/2008
1/09/2008
1/08/2008
1/07/2008
1/06/2008
1/05/2008
1/04/2008
1/03/2008
1/02/2008
1/01/2008
1/12/2007
4500
1/11/2007
5000
1/10/2007
1/09/2007
1/08/2007
1/07/2007
EC
Werribee
Weir/Melton ratio
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4000
4
3500
4
3000
3
2500
3
2000
2
1500
2
1000
1
500
1
0
0
Ratio Werribee Weir to Melton salinity
Salinity at Melton Reservoir and Werribee Weir…
Melton
EC Werribee River
Werribee weir
5
Desalination of recycled water…
• 3 technology 0ptions Investigated…
– Reverse Osmosis (RO)
– Nanofiltration (NF)
– Electrodialysis Reversal (EDR) and disinfection
• Capital cost
– based on taking salt from recycled water and mixing it with
the standard recycled water
– This is the cheapest option
Quality / Volume
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40 ML/day
65 ML/day
90 ML/day
1,000 EC
$130m – $170m
$170m – $230m
$210m – $280m
1,300 EC
$110m –$140m
$130m – $180m
$150m – $210M
1,500 EC
$90m – $120m
$120m – $160m
$140m – $190m
Desalination recycled water supply cost…
• Assumptions…
– 1500EC target
– 65ML day supplied
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Supply system
Efficiency
$ per ML
No channel improvement
65%
$2,562
Piped channels
90%+
$2,186
Lined channels
85%
$2,097
Trading options…
• North South Pipeline
•
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–
Government committed to maximum 75,000 ML
–
Commitment to Northern Irrigators that this would be maximum amount
–
Option to access water from northern Victoria not available
MID – Thomson Dam
–
11,000 ML Entitlement on key rivers in the MID
–
30% can be transferred across the system
–
Water must be purchased and water transferred through district.
–
Cost to transfer is $430 per ML for 2009/10.
–
Must be delivered with another product (river / recycled water)
Other options…
• Groundwater
– Fully allocated and currently not available
– Deeper aquifer is salty and not suitable without high cost treatment
• Storm water
– MWC currently investigating storm water harvesting options that
may provide water for irrigation in the long term
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2. Key Findings:
Infrastructure Options
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Infrastructure options ….
• Pipelining
– Options investigated included piping 44 km
• Pumped pressure pipe system, and
• Gravity piped system
» $44m and subject to cost escalation
– Has a life expectancy of 80 years
– Provides highest efficiency 90%+
– Full cost recovery over 25 years
15
Infrastructure options ….
• Channel lining
– Options investigated included
• Lining with polypropylene roll out liners
• Spray-on membrane liners
• Life 25 years
– Expected efficiency 85%
– Cost ranges from $16m – $20m
• Water measurement
– Remote control regulators installed at key sites
• Improve measurement and operation flexibility
– Customer outlets – metering to use magflow meters
– Total cost – approx $2m
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2. Key Findings:
Environmental issues
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On-farm issues …
• Commercial considerations
–
–
–
–
Cost of production
Choice, mix and rotation of crop types
Scale of operation and constraints
Land values, planning regulations and impacts of development on farming
• Water resource availability
– Security of water supply to grow crops
– Scope to reduce water use by utilising other irrigation methods
• Agronomy and water quality
– Identification and costing of best practice requirements for irrigation, soil
salinity and nutrient management
• Environmental implications
– Understanding of potential impacts
• Social factors
– Social, cultural, adoption of technology, management practices and business
decisions
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3. Possible Path Forward
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Possible future supply approach…
• Government announced access to 2000ML of Melbourne’s water
– Potential to use most metro water in summer to reduce recycled water
salinity to 1,600 EC’s
– Total flow rate increased from 60ML/d to approximately 80ML/d
– Potential to ‘bundle up’ and offer a ‘shandy’ (river / recycle / metro water)
product at a single price from 2011/12
• Means everyone pays, everyone gets salinity benefit
– We would only access metro water when
• River water allocations are low and
• Salinity is high
• Supply may include a mix of river water (when available), recycled
water and potable water to lower salinity
• Channel lining, metering and some automation
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What does this mean for customers…
• Improved outcome
– More water available for irrigation
– Access to lower salinity water to improve soil salinity and plant health
– Reduced application of soil conditioners and other additives and
therefore less on farm cost
– Potential to increased on-farm production, yield and crop quality
– Long term supply contract
– Improved viability of farming
• Leads to environmentally sustainable outcomes for the district
• The trade off
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–
Higher price for recycled /metro water
–
Greater take or pay commitment
Recycled water…
• Currently contracted to 2019
• MOU being developed with Melbourne Water
– Revision of current agreement from 1 July 2011 for 20 to 25 years
– Use current base price from the recycled plant (continued subsidy)
– 60 ML day flow rate; 11,100ML per year contract volume – best
endeavors above that (as per now)
– Additional costs to be paid by growers for significant service
improvements as determined via regulatory processes, e.g.
• Storage (reliability)
• Larger pipe and pump (higher flow rates )
– Desire for increased ‘take or pay’ component – currently 25%
– Best endeavors reliability – as per now
• Improvement options
– Storage
– Flow rate enhancements
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Effective price comparison…
2,500
Effective Price =
Total volume delivered
Total price paid
Effective Charge ($/ML)
2,000
No rebate
10% water allocation
1,500
1,000
500
Metro: lined
Metro: piped
De-sal: lined
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De-sal: piped
Status Quo
0
Effective charges…
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4. Key Findings
Next steps
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Consultation process…
• Establish Customer Reference Groups
– WID and BMID
• Seek nominations
– 1 WBMCCC for each group
– 6 customer representatives for each group
– Stakeholder representatives
• Appoint independent chair
• Terms of reference to include
– Bulk water supply options
– Pricing matters
– Infrastructure issues (e.g. channels and storages)
– Environmental matters
– Contract matters (recycled water, other bulk supplies)
• How do you get onto the Customer Reference Group?
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SRW in consultation with CRG…
• Finalise district strategy
• Communicate strategy to all customers
• Develop new customer contracts
• Develop business case to support infrastructure investment
• Implement strategy
• Transition to new operating arrangements 2011-2013
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District update…
• Recycled water supply
– Continue supply up to 68ML day
• River water
– Expect minimum 6% starting allocation
– Expect water quality to improve with increase in allocation
• Metro water
– Available for next season
– Discussion required on how this is offered
– Delivery price in the order of $960 per ML for 2010/11
– Detail to be worked through with CRG
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Questions?
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