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Scotland The Hydro Nation

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Presentation on theme: "Scotland The Hydro Nation"— Presentation transcript:

1 Scotland The Hydro Nation
Barry Greig Scottish Government Water Industry Team Scotland has 1/3 of GB land area and over ½ of its renewable water resource Over 1.9 per cent of land surface in Scotland is covered by freshwater 70 per cent of the area and 90 per cent of the volume of all the UK’s inland surface water is in Scotland Scotland has 7x the average UK resource per head of population The water contained in Loch Ness is nearly twice the amount in all the standing waters of England and Wales One in eight of the world’s population do not have access to clean water and 2.5 billion live without basic sanitation. Scotland The Hydro Nation

2 Scottish Water 5.3m people - 2.4m households
business customers 95% population connected to mains sewerage 98% to mains water 1.3 billion litres water delivered per day Public Corporation established in 2002 with Board appointed by Scottish Ministers 113 reservoirs 266 treatment works 70,000 acres of water catchment 39,762 miles of water pipe 31,477 miles of waste water pipe 1,863 waste water treatment plants

3 1 monster One monster

4 Scottish Water : History 1996-2002
Three regional water authorities Huge challenge to meet EU Directives Heavy reliance on PFI for wastewater investment English privatisation challenge Things changed in Three regional water authorities were set up reporting to the Secretary of State for Scotland. They were set up separately because they served very different areas, different population types and had very different challenges. Different charges. And there was a big challenge to improve environmental standards. Our beaches were too dirty and there were too many watercourses being polluted by overflowing sewers. That required some massive investment in the treatment works and networks, with money that the three authorities just did not have. One solution was PFI – Private Finance Initiative. There was major investment through PFI in the sewerage systems in Scotland in the late 1990s. About half of the population’s sewage in Scotland is still handled through PFI assets. 4

5 Overall Service costs have been reduced by 40% over last decade Savings around £2.5 billion Average annual household bills around £105 lower than they would have been. £105 = £57 from lower operating costs and £48 - improved planning and procurement of capital investment

6 2012-13 Drinking Water Quality – 99.88% samples passed
Environmental incidents reduced by 34% Leakage reduced by nearly 50% since 2006. Last published annual report showed we have massively improved Customer Service - exceeded the Overall Performance Assessment target of 369 agreed with Ministers by 30 points or 9%. 99.88% of the 320,000 samples met strict quality standards Environmental Quality – the numbers of environmental pollution incidents was reduced by 34 % - beating the agreed target by 30%. Turret Water Treatment works near Crieff - turbines now produce enough energy to power the works and a further 450 homes. Glencorse Water Treatment Works, Edinburgh –one third of the power requirements of the new works comes from renewable sources. Scottish Water is planning investment of £50m by 2015 which, when combined with investment from partners, would enable assets on its land to generate more renewable energy than Scottish Water consumes.

7 Lower carbon footprint = reduced energy costs
Tackling Climate change - Renewable energy installations already in existence provide some 6% of Scottish Water’s energy needs and committed to reducing carbon footprint

8 SW is now an asset In 1999 the Scottish Water Industry had enterprise value £500m below its outstanding debt Now has enterprise value £2bn above Aspiration of lowest quartile on price – highest quartile on service is within reach

9 Water Industry in Scotland
Delivery Organisation Economic regulation Customer Representation Stakeholders monitor performance through outputs and outcomes rather than inputs All benefit if SW meets its targets at less than the WIC allowed for Quality regulation

RETAILERS 159,000 BUSINESS PREMISES If you want to choose your water supplier, or need a new connection, the first thing to do is discuss your needs with any or all of the water companies in Scotland. The licensed water and sewerage suppliers currently operating in Scotland are: Aimera Anglian Water Business Business Stream Clear Business Water Cobalt Water Severn Trent Services Thames Water Commercial Services United Utilities Scotland BUSINESS CUSTOMERS BUSINESS CUSTOMERS

11 Scotland The Hydro Nation
Scottish Ministers must: ‘take such reasonable steps as they consider appropriate for the purpose of ensuring the development of the value of Scotland’s water resources’ Concept of Scotland the Hydro Nation – ‘a nation which manages its water environment to the best advantage, employing its knowledge and expertise effectively at home and internationally.’ Water Resources Scotland Act 2013 places a duty on the Scottish Ministers who must ‘take such reasonable steps as they consider appropriate for the purpose of ensuring the development of the value of Scotland’s water resources’ By which we mean economic and non-economic value

12 Scotland The Hydro Nation
Respond to global challenges responsibly, promote key water issues and build our reputation as a Hydro Nation Promote Scotland’s unique contribution in areas such as water technology, governance, management and regulation. Scotland is determined to respond to global challenges and capitalise on the clear economic opportunity - There is an undeniable case for water being a sector with growth potential to support Scotland’s low-carbon economy. So we want to capitalise on the international market potential of water and respond to the immense water challenges that population growth and climate change bring, increasing our international presence and profile, working to improve global water governance. Water is a vital part of Scotland’s natural capital and one we mean to develop for the benefit of all.

13 Scotland The Hydro Nation
develop value of the water resource improve  productivity make water an energy asset protect and enhance the environment through the good management of Scotland’s water. develop the value of our natural water abundance. Improve the productivity of our water industry in particular by launching a water innovation service to help bring new technologies through to the market. make water an energy asset through greater water efficiency, reducing the energy we use to manage our water and critically by generating more energy from water. While ensuring that we protect and enhance our environment through the good management of Scotland’s water.

14 Scotland The Hydro Nation
Hydro Nation Forum, Chaired by Deputy First Minister Hydro Nation Research Programme Hydro Nation Water Innovation Service Key Activities Hydro Nation Forum, high-level experts, chaired by Deputy First Minister to steer agenda across sectors & share knowledge. to build our research base and international profile and support innovation and development - includes establishing CREW, Scotland's Centre of Expertise for Waters: short and long-term research, Hydro Nation Scholars PhD Programme, customer research, workshops, stakeholder liaison Ministers recently given approval to establish the Hydro Nation Water Innovation Service to tackle some of the specific barriers faced by small and medium sized businesses in the water industry in bringing new technologies to market, namely: the time it takes to gain approval for new products, the range and cost of accreditation and certification required; and the very limited access to suitable testing facilities on the public water and waste water infrastructure in Scotland The service has been designed to address these barriers. It will assist the identification and exploitation of key opportunities for Scotland to bring new technologies to the market that can reduce cost and raise standards in remote and more rural supplies, where currently supply costs are very high The Innovation Service will also help address the opportunity to increase our currently fairly low share of the highly competitive estimated £242 Billion global market for water services and technology. A further benefit is the ability to use the Innovation Service and the testing facilities which it will provide to build technical collaboration with other centres of expertise including well-established ones in Holland, Germany and Canada. The Innovation Service will also provide support for the development of and access to the Environmental Testing and Verification (ETV) process to help grow the competitiveness of Scottish businesses. The Innovation Service is expected to improve our ability to engage with, and partner, other EU nations to benefit from grant funding and research outputs. To that end officials have been actively exploring with other centres of water expertise, particularly in Holland, to consider how best to develop collaborative activity to our mutual advantage, and ensure that the Hydro Nation Water Innovation Service is both distinct and complementary

15 Scotland The Hydro Nation
International Programme - Climate Justice Fund support for key projects – e.g. WARES Host XVth International Water Resource Association Congress in Edinburgh 25th-29th May 2015 Our £6 million Climate Justice Fund, supported by Hydro Nation, is already funding 5 water-related adaptation projects in Malawi and Zambia – increasing vulnerable communities’ resilience to the impacts of climate change and helping communities affected by climate change, for example by improving their access to clean water, and by educating and empowering women so that they can play a leading role in their local communities. The second £3 million funding round launched on 14 April 2014 and is open to Scottish-partnered projects in Malawi, Zambia, Tanzania and Rwanda. Successful projects will again have a focus on water and climate adaptation, although we are also open to energy and food projects connected to water, for example hydro power or solar irrigation. We are particularly looking for projects that can bring in business involvement and business models, and those that build links between communities in Scotland and climate vulnerable communities in Sub-Saharan Africa. We look forward to announcing successful applicants later in the year. Contribute to the global water debate and increase our profile as a Hydro Nation: hosting the Host XVth International Water Resource Association Congress in Edinburgh 25th-29th May 2015 All this is backed up with practical programmes on knowledge exchange, and a focus on the continuing improvement in the performance of the public water utility.

16 Scotland The Hydro Nation
Rural Provision is key challenge Variable quality of private supplies Good record on mandatory standards but bacterial contamination is an issue Question of should we reduce private supplies, or are there better solutions?   We have our challenges like anyone else – Rural Provision – hence our keen support of projects like WARES Around 3% of households are served by private water supplies and 7% with private sewerage - predominantly remote rural = circa 22,000 private water supplies of which 2,500 are large supplies serving commercial properties and/or large communities Quality of private supplies varies – both the Drinking Water Quality Regulator and SEPA concerned about potential impacts on public health and t the environment.  In her 2012 Annual Report, the DWQR noted that while 91% of supplies met mandatory microbiological and chemical standards, 15% were contaminated with e-coli and one-third with coliform bacteria.  Policy challenge is whether we should we seek to reduce the number of private supplies to raise public health standards and increase water supply reliability, or are there other, better solutions?

17 Barry. Greig@scotland. gsi. gov
Hydro Nation Manager Water Industry Team Scottish Government

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