The Water-Energy Nexusin Canada

Canadian Water SummitNRTEE Session

Pierre Lundahl

1

Water and Energy

• Water and energy are two founding blocs of life on the earth

• Water and energy are both essential inputs into productive and healthy human societies

• Essential ecosystems services depend on water availability and quality and should be protected

• Water supply and energy in usable forms like electricity and gasoline are all derived from natural resources

2

Using Water Requires Energy-

Producing Energy Requires Water

• Most uses of water in our societies require energy : water has to be pumped, treated, pressurized transported, cleaned, etc.

• Nearly all energy production requires water

3

Producing Energy Requires Water :Examples

• Water used in fossil fuel extraction and treatment facilities

• Water used as a cooling medium in fossil fuel or nuclear electricity generation

• Water used in air treatment systems in some fossil-fuel electricity generation

• Water used in the production of biofuels (irrigation)

• Hydroelectricity

• In Canada, electricity generation is a large water user, but it is mostly non-consumptive use of water. Hydropower, for example, returns 100% of the water used to the rivers

4

Water as a Renewable “Fuel”• Hydropower represents 60 % of the electricity generated in

Canada and there is still a large potential that can be developed

• Hydroelectric reservoirs allow the storage of energy. Since electricity demand is subject to hourly, daily and seasonal changes, the storage capacity allows production to be adjusted to demand

• The storage capacity of reservoirs also can also facilitate the development of intermittent renewable sources of electricity like wind

• Hydropower has no air pollutants emissions and practically no GHG emissions

5

An Evolving Context (1)• Canada has lots of freshwater and long coastlines, as well as

large energy resources for which there is strong internal and external demand, but :– Our population and our economy are growing driving a growth in

energy demand

– Our population and the majority of our industries are in the southern part of the country

– Many of our water resources are in the North

– Water scarcity is already felt in some regions

– Climate change will modify precipitation patterns but accurate forecast at are still not possible at the regional level; in some of the regions that produce hydropower, precipitation is foreseen to increase, increasing potential electricity production

– Increased competition for water resources is likely even with improved water use practices in homes and industries 6

An Evolving Context (2)• Even in the most optimistic scenarios, improvements in energy

efficiency will only slow the growth of the demand for electricity in Canada, not reverse it

• Part of the electricity generation fleet is nearing the end of its lifespan and must be replaced

• Reducing GHG emissions will require modifying the energy mix and increasing the share of non-emitting energy, particularly non-emitting electricity

• Potentially, a switch to electrical cars (or rechargeable hybrids) driven by the need to reduce GHG, can result in increased demand for electricity

• North American demand for oil and natural gas will remain strong, due in part to the US need to reduce its dependence on sources that are subject to geopolitical risk 7

Water and Energy : the Sustainable Development Challenge

To move successfully towards a more sustainable economy, while continuing to be competitive, Canada needs to :– Ensure that electricity and other forms of energy

remains available at a competitive price while reducing GHG emissions; This will require large investments in new clean generation

– Ensure that water scarcity does not slow down economic growth in certain parts of the country;

– Protect its ecosystems 8

The Water-Energy Nexus : How to Respond to the Challenge (1)

• Improve integration between water management planning/policies, energy planning/policies and climate change policies at the regional level and Canadian level

• Put in place policies that favour the development of renewable and non-emitting sources of electricity and energy

• Improve the regulatory framework for the review and authorization of energy projects while maintaining environmental protection safeguards

9

The Water-Energy Nexus : How to Respond to the Challenge (2)

• Improving the federal regulatory framework is essential to create a climate favourable to the development of large scale renewable power projects, particularly hydropower projects. This can be done with no negative impact on the environmental performance of projects.

• These projects can bring a large contribution to the reduction of GHG and air pollutants and contribute to reducing the diffuse impacts of these emissions on our water resources.

10