Risk Governance Research Workshop Lisbon, Instituto Superior Tecnico, June 25, 2014 Quantifying WEF Interdependencies for Mitigating Resource Uncertainties in Developing Countries Afreen Siddiqi, Ph.D. Research Scientist, MIT Visiting Scholar, Harvard Kennedy School Increased demands and new technologies have created the ‘water-energy-food’ nexus Food, water, and energy are increasingly interlinked across different segments of their value chains water is used in extracting and processing fossil fuel, and cooling electric power plants energy is needed for pumping ground water, desalination, distribution, and treatment energy is used to power agricultural machinery, process and transport food adoption of bio-fuel has raised concerns for adequate food supply and use of water Understanding and accounting for these interconnections is important for resource use-efficiency, socio-economic growth, and long term sustainability 1 World Economic Forum: Global Risks Assessment 2011 The water-food-energy nexus A cluster of risks within 37 selected global risks as seen by members of the World Economic Forum’s Global Agenda Councils and supported by a survey of 580 global leaders and decision-makers Source: Global Risks 2011, World Economic Forum. Demand for water, food and energy is expected to rise by 30-50% in the next two decades Economic disparities incentivize short-term responses in production and consumption that undermine long term sustainability Shortages could cause social and political instability, geopolitical conflict and irreparable environmental damage. Any strategy that focuses on one part of the water-energy-food nexus without considering its interconnections risks serious unintended consequences 2 Journal publication trends in Compendex database show emergence of ‘nexus’ research on water, energy, and food 45 40 25 South Africa 4%France 4% Sweden 4% China 4% 20 Japan Spain 4% 5% 35 # of publications Greece India 3% 3% 30 water OR energy OR food AND nexus US 38% Germany 5% 15 Others 5% UK Turkey 8% 5% Australia 8% 10 water AND energy AND nexus 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 3 Indus River Basin in Pakistan KPK AGRICULTURE 20.1% INDUSTRY Punjab Balochistan SERVICES 54.4% GDP 25.5% Sindh POPULATION: 180 MILLION POPULATION GROWTH RATE: 1.8% 82% URBAN Siddiqi, A., Wescoat, J. L., (2013), “Energy use in large-scale irrigated agriculture in the Punjab province of Pakistan”, Water International, 38 (5), pp 571-586. (*Editors Choice Article) 4 Research Q: What is the energy intensity in large-scale irrigated agriculture in Pakistan? We base our analysis on the Indus basin in Pakistan a country of 180 million people intimately dependent on the Indus river for water, food, and energy human impact acute shortage of energy and water, and insufficient access to nutrition necessary conditions present for action major institutional re-structuring and infrastructure planning under-way finite possibility of implementing solutions 5 Global Map of Irrigation Source: FAO http://www.fao.org/nr/water/aquastat/irrigationmap/index10.stm 6 The Indus Basin length (km) : 3,180 annual flow (km3) : 207 Avg. Discharge (m3/s) : 6600 Basin Area (km2) : 1,005,786 Total Population (Million) : 237 Basin Precipitation (mm/yr): 423 Source: Laghari et al. Hydrol. Earth Syst. Sci., 16, 2012: 1063-1083. 7 Large part of the Indus Basin is arid Low precipitation and high ET render the region largely arid. Rain fed agriculture is limited. Ref: Laghari et al. Hydrol. Earth Syst. Sci., 16, 2012: 1063-1083. 8 Despite the aridity, the area is a major agricultural region through irrigation Image by James Wescoat 9 Indus basin irrigation system is among the world’s largest network of surface canals ~129 km3 of water is diverted annually to the canal network for irrigating 44 million acres There are large delivery losses (40% – 60%) in the surface system that has led to expansion of pumped irrigation Key Features of Surface Irrigation System 10 Canal water availability has declined over past decades (largely during the winter cropping season) Canal Withdrawal in Punjab 80.000 70.000 Total (annual) Billion Cubic Meters 60.000 50.000 Kharif (summer) 40.000 30.000 Rabi (winter) 20.000 10.000 0.000 The linear trend for Rabi is an average decrease of 252 Billion CM per year The overall trend is a decrease of 182 Billion Cubic meters each year for canal withdrawals in Punjab 11 A conjunctive irrigation system has emerged with surface and ground water use that now depends on energy Dot Density: 1 dot = 500 Tubewells Tubewells in 1995 Tubewells in 2010 Using district level tubewell installation data, we used GIS Mapping to map pumping density in Punjab 12 Acute energy shortages are impacting all sectors of the economy Energy Shortage Context in Pakistan Estimated Electricity Deficit in 2011 Industrial Agricultural Electricity Use [GWh] 3000 2500 2000 1500 1000 500 0 2006-07 2007-08 2008-09 2009-10 2010-11 MEPCO Siddiqi, et. al, “An empirical analysis of the hydropower portfolio in Pakistan”, Energy Policy, Vol. 50, 2012 13 800,000 0 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Tube wells in Punjab A massive pumping system draws water from the ground to augment surface water supplies for agriculture Total Electric Tubewells Total Diesel Tubewells 1,000,000 900,000 off-grid distributed system 700,000 600,000 500,000 400,000 300,000 200,000 100,000 14 Reported data of energy use in agriculture provides only partial information of total energy used in the sector Energy Use in Agriculture in Pakistan Agri Sector LDO [kTOE] Agri Electricity in Pakistan [kTOE] 900.00 800.00 700.00 k TOE 600.00 500.00 400.00 300.00 200.00 100.00 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 - Data Source: Energy Year Book, HDIP (2010, 2012) 15 Top down data coupled with bottom up calculations were used to estimate energy use in agriculture Fuel Type Farm Machinery Farm Operations direct energy use Tractors (< 55 HP) High Speed Diesel (HSD) Tractors (> 55 HP) Field Operations HSD Tube wells Light Diesel Oil (LDO) LDO Tube wells Electricity Electric Tube wells Natural Gas Fertilizer Production Water Pumping Fertilizer Application in- direct energy use 16 Pumping system and farming machinery stock levels used for bottom up estimation of HSD consumption Annual fuel use volume (Vkfuel) for each type of element (power level and fuel use type) was estimated as: k V fuel S k c fuel U k Total Electric Tubewells Total Diesel Tubewells 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1970-71 1972-73 1974-75 1976-77 1978-79 1980-81 1982-83 1984-85 1986-87 1988-89 1990-91 1992-93 1994-95 1996-97 1998-99 2000-01 2002-03 2004-05 2006-07 2008-09 Operation and usage data obtained from Punjab Agricultural Machinery Census of 1994 and 2004 Tube wells in Punjab U td where: Sk: stock level of machinery in year k cfuel: fuel consumption /hr U: annual utilization t: operating hours per day d: number of operating days per year Number of Tractors in Punjab 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 17 Benchmarking of the results showed reasonable agreement with reported data Punjab Agri LDO Use The ratio of HSD motors used for water pumping changes from 24% (of total installed base) in 1994 census to 80% in the 2004 census. This shift in fuel type contributes to steady decline of LDO sales 300.00 250.00 200.00 k TOE bottom-up estimate of LDO use 150.00 100.00 We compared country-level results of PakIEM model (which is MARKAL adapted for Pakistan) 50.00 0.00 Source: Pakistan Integrated Energy Model (Pak-IEM) – Final Report Vol. I, 2010 Agriculture Energy Use (2007) Pak-IEM Estimate (Pakistan) Pak-IEM derived estimate for Punjab MIT Study data and results Electricity 0.8 Mtoe 0.8 X 0.47 = 370 ktoe 312 ktoe LDO 0.1 Mtoe 0.1 X 0.9 = 90 ktoe 81 ktoe HSD 2.7 Mtoe - 2.4 Mtoe LDO Electricity HSD 18 Water pumping is estimated to account for 61% of direct energy use in 2010 in farm-level operations Energy Use by Application and Fuel Type in Punjab Agriculture Electricity (pumping) LDO (pumping) HSD (pumping) HSD (Farm Ops) 1600 HSD TW pumping 1400 1200 field (HSD tractor) operations 800 600 Electric pumping 400 2009-10 2008-09 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 1998-99 1997-98 1996-97 1995-96 0 2007-08 LDO TW pumping 200 1994-95 k TOE 1000 19 Reported estimates for agriculture (that exclude HSD) show only a 3% share in total energy use in the province in 2010 Reported Energy Use in Sectors (Punjab) [kToe] Estimation Adjusted Energy Use in Sectors (Punjab) [kToe] Domestic: Industry: Agriculture: Commercial: Transport: Power: Other: Domestic: Industry: Agriculture: Commercial: Transport: Power: Other: Other 2% Govt. 2% 1764 1785 467 287 5265 5305 366 Commercial Domestic 2% 12% Industry 12% Power 35% Domestic 12% Industry 12% Power 35% Agriculture 3% Transport 34% 1764 1785 3118 287 2634 5305 366 Agriculture 20% Commercial 2% Transport 17% 20 Water, food, and energy security is about human welfare – the resource-use efficiency needs to be improved At the provincial level in Punjab (between 1995-2010): Direct energy intensity has risen 80% (from 1 to 1.8 MJ per kg of crop produced) Fertilizer use intensity has risen 85% from 99 kg/ha to 184 kg/ha Total crop production has increased only 31% “Due to declining performance of the sector, as well as increased cost of inputs and inflation, the cost of food per head in the province has gone beyond Rs.3000 [$30] per month” (DAWN, March 25, 2013) 21 Future work: Integrated modeling of water, energy, crop production, for water, food, and energy security 22 Summary In principle, policy makers acknowledge importance of integrated planning; in practice it has been hard to do so due to technical and institutional hurdles Knowledge gap in resource inter-linkages is a major impediment towards improved policy Strategic organizational linkages, and enhanced rules for infrastructure planning and resource policy can be easy first steps towards improving decision-making “The vast gains in human welfare from improved provision of food, energy and water – and the spectre of losing this access through shortsighted policies that fail to recognize the complex interactions of these three issues – suggest that the Energy Water Food nexus must be prioritized both by the analytical policy-support community and policy-makers” (Bazilian et al, Energy Policy, 2011) 23 QUESTIONS? 24 HSD and LDO Two main grades of diesel fuel are marketed in India and Pakistan, High Speed Diesel (HSD) and Light diesel oil (LDO). HSD is a 100% distillate fuel while LDO is a blend of distillate fuel with a small proportion of residual fuel. HSD is normally used as a fuel for high speed diesel engines operating above 750 rpm i.e. buses, lorries, generating sets, locomotives, pumping sets etc. Gas turbine requiring distillate fuels normally make use of HSD as fuel. LDO is used for diesel engines, generally of the stationery type operating below 750 rpm Ref: http://www.petroleumbazaar.com/hsd/hsdappli1.htm 25 Energy estimates for agriculture show that the sector accounted for 20% of total energy use in Punjab in 2010 Other 2% Energy Use in Sectors (Punjab) [kToe] Domestic: Industry: Agriculture: Commercial: Transport: Power: Other: 1764 1785 3118 287 2634* 5305 366 Total: 15259 Water pumping (~1909 kToe) is 12% of total energy use in the province in 2010. Farm operations with tractors (~ 1209 kToe) is 8% of total energy use in 2010. Domestic 12% Industry 12% Power 35% Agriculture 20% Commercial 2% Transport 17% *HSD use estimate for agriculture was subtracted from official HSD transport numbers keeping the reported total energy use for the province 26 Energy, water, food policy have interwoven concerns from ensuring access to price volatility to environmental impacts Benefits of more holistic policy & regulatory design would likely be: economic efficiency resource efficiency improved livelihood options and public health Negative consequences can include impacts on communities commodity prices sub-optimal infrastructure design environmental degradation 27 Surface irrigation system serves to redistribute meltwaters as ground water recharge Snow and icemelt from glaciers Extensive distribution network 1. http://earthobservatory.nasa.gov/Features/Monsoon/printall.php Large surface storage 28 Energy, water, food policy have interwoven concerns from ensuring access to price volatility to environmental impacts All three areas : have many billions of people without access (quantity or quality or both) have rapidly growing global demand have resource constraints Benefits of more holistic policy & regulatory design would likely be: have different regional availability, supply, and demand operate in heavily regulated markets are ‘‘global goods’’, involve international trade and have global implications have deep security issues as they are fundamental to the functioning of society require the explicit identification and treatment of risks Negative consequences can include have strong interdependencies with climate change and the environment economic efficiency resource efficiency improved livelihood options and public health impacts on communities commodity prices sub-optimal infrastructure design environmental degradation Bazilian et al., “Considering the energy, water and food nexus: Towards an integrated modelling approach”, Energy Policy, 2011 29 Background 70% of global freshwater use is in the agricultural sector Rainfed agriculture covers 80% of cultivated land globally, and produces 60% of crops Irrigated agriculture represents 20% of cultivated land and accounts for 40% of crop production irrigated agriculture grew 1.5% annually from 1950s-1990s Un-reliable surface water supplies increasingly replaced with ground water withdrawals – a shift that requires more energy The shift from gravity-fed, surface water to pumped ground water and pressurized field application systems has increased the coupling between water and energy in large-scale irrigation 30 30 Future Work: Incorporating Water Availability Uncertainties Planning for uncertainty in water availability Glacier Area Glacier Area % % change Glacier Area [km2] – shifts from historical norms – Indus is considered one of the most vulnerable rivers to climate change – decreases in surface water supplies will likely further increase pumped irrigation Decade in the future Expected shifts in annual influx in the Indus River [2] [1] Himalayan Glaciers, National Research Council, 2012 [2] Pakistan’s Water Economy: Running Dry, John Briscoe, Oxford Univ. Press, 2006 31 31 World Economic Forum: Global Risks 32 Quantitative Modeling and Analysis of Complex Systems for Data-driven Planning and Decision-Making Investigating interactions between large-scale, critical infrastructure systems (such as that of water, energy, and agriculture) with the aim of informing policy, planning, and design for improving resource use efficiency and enabling long-term sustainability Modeling and Computation Decision Analysis Dependency Structure Mapping Graph Theory & Networks Analysis Systems Dynamics Stakeholders Analysis 33 Urban Water-Energy Couplings Problem Approach Impact Quantifying water-energy couplings at urban-scale Building-level temporal computation of water use and related energy consumption Synergies for water and energy infrastructure planning, higher efficiencies, improved architectural decisions Uncertainty Drivers: Population Growth Climate Change Factors: Urban Form Water Scarcity System Architecture 34 34 Urban Water Cycle: Masdar City, UAE Siddiqi, A., de Weck, O.L., (2013) “Quantifying End-Use Energy Intensity of the Urban Water Cycle”, ASCE Journal of Infrastructure Systems, 19 (4), pp 474-485 35 Building level water sources modeled in the study include municipal water, rainwater, and recycled grey water 36 36 Energy needs for Building-level Water Use 1. Energy for Water Heating EH Ep ep VM maxF 1 fM , 0 V{ RW F VWW F 123 1 4 4 44 2 4 4 4 43 rainwater recycled wastewater building height VH cT h A VH hi vi i 1 2. Energy for On-site Pumping hF 1 l ep p 3. Energy for On-site Recycling Ag Er er vi i 1 4. Building-level Energy for Water Use: ET EH EP Er VH : volume of heated water ρ : density of water c : specific heat capacity ΔT : temperature difference αhi : ith application hot water fraction vi : ith application water use volume er : energy intensity of recycling hF : floor height αl : pipe losses F : total number of floors in building 37 37 Computational Framework 38 38 Sample Outputs 39 39 Case Study: Masdar City Masdar City is in the outskirts of Abu Dhabi, United Arab Emirates It is 6 km2 , planned to house 50,000 people, 1500 businesses, and a technical university. Initial cost estimates were at $22 billion and development time was ~10 years It was originally targeted to be the world’s first zero-carbon city 40 40 Masdar City: Plot-level Master Plan 41 41 Energy for all Water Segments Estimated Energy for Water Cycle [GWh] Estimate for Masdar City ΔE Annual Water Demand [Million m3] 42 42 Energy by Water Segment GWh Estimated Annual Energy Requirement In Water Cycle for Masdar Water Demand Scenario 43 43 Comparative Analysis Comparison of Energy Intensity of Masdar Water Cycle Across the range of water demand scenarios considered, the energy intensity for Masdar City is ~5-7 kWh/m3 44 44 Summary End-use segment compares almost equally in energy intensity with production segment (in case of Masdar) Water heating – even in hot climates- makes up a large share of waterrelated energy use in buildings Water efficiency in end-use segment is a high-impact lever for influencing energy consumption in the urban water cycle – water efficiency in end-use has largest multiplier effect for energy – water conservation measures can be incentivized from an energy and financial savings perspectives Water-sector energy efficiency incentives should be targeted for both utilities and end-users 45 45 Energy for Large-Scale Irrigation IBIS – Distributory Network Indus Basin Irrigation System (IBIS) Problem Approach Impact Quantifying energy intensity of largescale irrigation. Water and energy stocks and flows in natural and engineered system; relating water efficiency and energy efficiency. Application to IBIS investment decisions and infrastructure planning ($30 billion currently planned) Major Reservoirs: 3 No. of Barrages: 16 No. of Inter-link Canals: 12 No. of Canal Systems: 44 No. of Water Courses: 107,000 Avg. Canal Diversions: 104.7 MAF Groundwater Abstraction: 42 MAF No. of Wells: > 750,000 Canal Command: 36 M acres 46 46 Research Q: How are energy intensity and water use efficiency coupled in large-scale irrigated agriculture? Large-scale irrigated agriculture is at the core of this nexus We base our analysis on the Indus basin in Pakistan a country of 180 million people intimately dependent on the Indus river for water, food, and energy human impact acute shortage of energy and water, and in-sufficient access to nutrition necessary conditions present for action major institutional re-structuring and infrastructure planning under-way finite possibility of implementing solutions http://www.fao.org/nr/water/aquastat/irrigationmap/index10.stm length (km) : 3,180 3 annual flow (km ) : 207 3 Avg. Discharge (m /s) : 6600 Basin Area (Million km2) : 1 Total Population (Million) : 237 Precipitation (mm/yr): 423 Ref: Laghari et al. Hydrol. Earth Syst. Sci., 16, 2012: 1063-1083. 47