1. The Water:Energy Nexus Simultaneous solutions or dual disasters?
Jeff Fulgham
Chief Sustainability Officer
GE Power & Water

2. (In billion cubic meters)
Global 2030 needs
2x Electricity
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2008
2010
2015
2020
2025
2030
Emerging
Developed
Billions of kW hours
19.9
U.S. 5 10 15 20 SA
Algeria
Korea
France
Spain
India
Japan
Russia
China
50.2
62.2
Brazil
*at same consumption rate
3x Water
(In billion cubic meters)

3. REDUCE before we PRODUCE Water:Energy Nexus
Both challenges must be addressed together

4. Nexus #1: 6-19% of a city’s energy demand used to produce, treat & transport water

5. Solution #1: Distributed water & power… right mix, right place, right price
ENERGY

6. Green building

7. Distributed solutions

8. * Membrane replacement, Chemicals, Labor, Maintenance
Nexus #2: Higher technology to treat impaired water requires higher energy demand
WATER
ENERGY
Membrane
Other
O&M*
~33%
Capital
~33%
Energy
~33%
Thermal (MED)
Other
24%
Capital
31%
Energy
45%
* Membrane replacement, Chemicals, Labor, Maintenance

9. Solution #2: Joint technology development driving energy and cost out
WATER
ENERGY
2010
1996
1.25
0.25
0.75
Cost of Water $/m3
Cost of ‘Traditional’ Water Supply
Cost Water Reuse
Cost of Desalination
0.50
1.00
The cost of desalination with GE membranes has fallen by more than 80% in the last two decades

10. Opportunity #2: Technology development driving energy and cost out$$
SHORT TERM
High-Flux Membrane Systems
Chem/Membrane/Equip Integration
Advanced Pretreatment
Next-Generation Electrical Processes
Nano technologies
Solar & Low Grade Heat Integration
LONG TERM
High-Efficiency Membrane Materials
SWRO-PRO/RED Integration
Renewable Energy Integration
Nano-tube Active Transport
Additive Particulate Separation
Forward desalinationn

11. Opportunity #2: Next-gen technologies

12. Nexus #3: Declining reservoir levels reduce hydro generating capacity
WATER
ENERGY

13. Solution #3: Reduce consumption, replenish reservoirs, alternative energy
WATER
ENERGY
Bioenergy
Geothermal
Natural Gas
Wind
Hydro
Solar
Hydrogen
Cauley Creek water reuse facility…restoring lake levels by treating municipal wastewater

14. Sustainable planning

15. Nexus #4: Power generation requires large quantities of water
ENERGY
>50% of global industrial water consumption is used to generate power

16. Solution #4: Reduce water consumption per MW produced
Align optimum water source with consumption need
Source
To Use
Water in
Convert waste streams
into value & minimize risk
Waste
To Value
Waste out
Optimize water & energy consumption in boiler, cooling and fuel systems
Process &
Utilities

17. Embracing water reuse

18. Turning waste into value

19. Nexus #5: Energy exploration & production generates massive wastewater

20. Solution #5: Advanced wastewater solutions reduce losses & enable water reuse
ENERGY

21. Reclaim & reuse

22. Nexus #6: Emerging market’s huge energy demand creates huge water demand
Only 5% of India’s municipal wastewater received secondary treatment…95% receives only primary treatment and flows directly to a receiving stream or the sea
In 2008, India is witnessing a very high peak electricity demand deficit of 12-13% and energy shortage of 6-8%, with which it is improbable for India to sustain high levels of economic growth
The Central Electricity Authority estimates that to meet it requirements, India would needs an addition of at least 161 GW of electricity generation capacity during the 11th and 12th five year plan periods. The government, on its part, has already set aside a fund of Rs 4108 billion (US$ 95 billion) for meeting new generation targets set forth in these plans.

23. Solution #6: Emerging market’s water and energy challenges can be solved simultaneously

24. Nexus #7 Water pricing & policies provide little incentive for change
High scarcity, low cost … where is
the motivation to conserve?
Renewable water resources per capita
If water were an economic commodity, we could expect the laws of supply and demand to play out. But do they in your world? I recently looked at the cost for water in over 180 locations around the world. If all was right with the world, one would expect a somewhat linear relationship between cost, on the X-axis, and availability, on the Y-axis, something like this …
In reality, there is almost no correlation. For example, in the Middle East where demand outstrips supply and desalination plants are the major source of potable water, water is almost free. Where is the motivation to reduce consumption? Water pricing is typically the same down to the last drop.
Why do the economics work this way? Two reasons:
First, public authorities supply most water and politicians do not like to raise water prices, a basic necessity … it can be career limiting.
Second, water systems typically involve high fixed costs and low operating costs, so the capex cost can be rolled into the general public debt and the opex can be minimized and subsidized if necessary. (Kathryn Garcia)
Three problems with this system:
When scarcity becomes an issue, it is very important to send a signal to customers that water is valuable.
Without a return on investment there is little incentive to invest in infrastructure and
There is no provision for depreciation of the fixed assets.
Total water + wastewater cost per m3 by country

25. Solution #7: Shift from price to value
Policies must be addressed on a national level and must be long-term and predictable.
This chart lays out some examples of policies that are working today around the world for Water reuse and for renewables.
In the case of water, many countries are putting in water reuse policies … In Saudi Arabia .. 11% reuse target today going to 65% by 2015.
In the case of renewables, over 70 countries now have a renewable energy target. Europe: 20% by 2020, China’s goal 100 GW of wind by 2020, India just put in a goal of 20 GW solar by 2022.
Clearly, many countries are taking action. The US has a tremendous opportunity to improve. Currently, only 6% water reuse and less than 3% Wind/renewables. We all know there has been tremendous focus on the US energy policy. But it is currently stalled … what can we do to move forward?

26. Many countries taking action … US currently stalled
Solution #7: National long-term policy critical
China: 100GW Wind by 2020
EU: 20% by 2020
National policies
n Renewables
n Water
Spain: 11% reuse today … 40% by 2015
India: -20 GW Solar by 2022
Policies must be addressed on a national level and must be long-term and predictable.
This chart lays out some examples of policies that are working today around the world for Water reuse and for renewables.
In the case of water, many countries are putting in water reuse policies … In Saudi Arabia .. 11% reuse target today going to 65% by 2015.
In the case of renewables, over 70 countries now have a renewable energy target. Europe: 20% by 2020, China’s goal 100 GW of wind by 2020, India just put in a goal of 20 GW solar by 2022.
Clearly, many countries are taking action. The US has a tremendous opportunity to improve. Currently, only 6% water reuse and less than 3% Wind/renewables. We all know there has been tremendous focus on the US energy policy. But it is currently stalled … what can we do to move forward?
Saudi Arabia: 11% reuse today … 65% by 2016
Israel: 85% reuse today 90% by 2016
Water data source: GWI
Renewables data source: REN21
Many countries taking action … US currently stalled

27. Opportunity #7: Comprehensive approach to water risk

28. We never know the worth of water till the well is dry.
~Thomas Fuller