WATER-ENERGY-FOOD NEXUS

WATER-ENERGY-FOOD NEXUS Namibian Interdependencies, Challenges and Development Opportunities Introduction & Teaser NamPower Convention Centre Dr Detlof von Oertzen What is a Nexus? a connection linking two/more important issues or a focal point. Energy Water Food Water-Energy-Food Nexus in Namibia 2 info@voconsulting.net 1

Energy-Water-Food Nexus Energy Economy s natural base Water Food Water-Energy-Food Nexus in Namibia 3 Our National Challenge - Water Namibia is a very dry country. Our climate is highly variable. Development cannot take place Water without secure water provisions. All potable water is pumped. Namibia s medium- to long-term water future is at risk. Water-Energy-Food Nexus in Namibia 4 info@voconsulting.net 2

Our National Challenge - Energy Namibia is highly dependant on energy imports. The country is well-endowed with Energy renewable resources. Namibia s electricity future can be placed on a firm footing. An underdelivering energy sector risks water & food shortages. Water-Energy-Food Nexus in Namibia 5 Our National Challenge - Food We remain a net food importer. Namibia does not produce what Food it consumes. Own supplies can address poverty and drive development. Water & energy are key inputs, and emphasise our vulnerability. Water-Energy-Food Nexus in Namibia 6 info@voconsulting.net 3

Interdependencies Water, energy & food are Water linked across the economy. To keep the national cogs turning necessitates de-risking this nexus. Climate impacts the nexus, with major repercussions for our development prospects. Water-Energy-Food Nexus in Namibia 7 Challenges A changing climate accentuates the interdependence of water, energy, and food. Systemic challenges call for whole-system approaches. Piece-meal methods and particular interests/interference further weaken the nexus. National resilience is improved when ecosystem services remain fully functional. Water-Energy-Food Nexus in Namibia 8 info@voconsulting.net 4

Development Opportunities Water Energy Food Create productive systems that are resilient Enhance diversity of supplies and localisation Focus on strengthening our adaptive capacities Water-Energy-Food Nexus in Namibia 9 Example: Development Corridors Objectives: 1. create rainfall-independent local water supplies 2. increase local electricity supplies 3. strengthen local food production capabilities 4. benefit from international climate funding prospects. Water-Energy-Food Nexus in Namibia 10 info@voconsulting.net 5

Development Corridors The Idea Using the Atlantic ocean s unlimited water supplies, and benefitting from Namibia s vast renewable energy resources and large under-developed tracts of land, create infrastructure corridors in which water, electricity, road and rail infrastructure is used to create decentralised growth & industrialisation opportunities that are largely climate-independent while benefitting from international climate funding. Water-Energy-Food Nexus in Namibia 11 Coast-to-Capital Development Corridor Source: info@voconsulting.net Water-Energy-Food Nexus in Namibia 12 6

Rationale: Coast-to-Capital Corridor Insurance policy for Windhoek the capital may not run dry Climate-proof development wait for rain, or start development? Industrial development water, energy & transport infrastructure Decentralise development initiatives Windhoek has limits Mining-independent development connecting Erongo to Khomas New jobs necessitate new ventures a pipeline alone does not do it Decentralised industrial activities to be initiated along the corridor Focus on high-value agriculture, manufacturing, processing etc Expensive? What is the price of water when rains have failed, again? Water-Energy-Food Nexus in Namibia 13 The Coast-to-Capital Corridor Water source: Atlantic ocean Production: desalinated sea water, approx. 25 million m3/a Piping: approx. 300 km, with 1 525 m static head Cost: desalination plant: approx. N$ 3.6 billion (2016) pipeline & electricity: approx. N$ 2.7 billion (2016) Forex exposure: approx. 25% of total capital expenditure requirements Cost of water: desalination: approx. N$ 36/m3 plus piping N$ 26/m3 total delivery at Von Bach Dam: from N$ 62/m3 Energy: desal: approx. 20 MW, pumping approx. 24 MW desal: 140 million kwh/a; pumping 185 million kwh/a Timeline: EPC & commissioning: 4 years + Water-Energy-Food Nexus in Namibia 14 info@voconsulting.net 7

A Resilient Water-Energy-Food Nexus Our water, energy & food sectors are extremely vulnerable, and at risk. To future-proof Namibia, we must further secure our supplies. Affordable & climate-resilient sources for water, energy & food are critical if we want to meet the national development ambitions. Our nearly unlimited water & renewable energy resources hold both competitive & comparative advantages. Our development activities should lead to the climate-proofing of the essential underpinnings of all economic activities, i.e. Namibia s water, energy and food nexus. Water-Energy-Food Nexus in Namibia 15 Thank you! Dr Detlof von Oertzen info@voconsulting.net www.voconsulting.net Water-Energy-Food Nexus in Namibia 16 info@voconsulting.net 8

INDUSTRIAL CORRIDORS AS BACKBONE OF NAMIBIA S DEVELOPMENT A CONCEPT NOTE Summary Namibia in general, and Windhoek in particular, are water-constrained. Without water there is no and will not be any significant development. It is therefore of strategic importance that viable longterm alternatives are found to de-link Windhoek s water requirements from rainfall and adverse climatic conditions, while at the same time creating new options to stimulate and drive the country s long-term sustainable development. Industrial corridors incentivise development through the systematic provision of water, electricity, road and rail infrastructure, thereby creating decentralised growth and industrialisation areas. An industrial corridor linking the coast to Windhoek would at the same time safeguard the capital s water supplies, and decouple it from rainfall variations. In principle, several such industrial corridors could be created in Namibia. An industrial corridor linking the coast to the capital would unlock the unlimited supplies of the Atlantic Ocean as a source of potable water, by using seawater desalination powered in part by solar and other renewable energy sources. Water generated in this way could be piped via Usakos, Karibib and Okahandja to the Von Bach Dam, from where it would complement Windhoek s supplies. A desalination plant of a capacity of 25 million cubic meters per year would cost some N$ 3.6 billion in 2016, yielding water at approximately N$ 36/m³ by the time the plant is operational in 2019. Piping desalinated water from the coast to the Von Bach Dam costs approx. N$ 2.75 billion, and adds some N$ 26/m 3 to its cost. At a total cost of N$ 62/m 3 in 2019, such water is considerably more expensive than NamWater s current bulk water supplies. However, when rains have failed, again, and Windhoek is about to run dry, such cost seems more acceptable than not having water at all. While a Coast-to-Capital corridor would provide a form of water insurance for Windhoek, it could be much more: by creating high-tech agricultural growth points along the water-power-transport infrastructure, such a corridor would offer climate-independent jobs, and could provide for food and high-value agricultural produce irrespective of the whims of the weather, thereby feeding the nation and earning revenues from high-value exports. Namibia needs a development vision that is underpinned by its natural endowments. The provision of water and energy remain central to all development efforts. Industrial corridors are a vision which drives the country s industrialisation, centred around the value addition of locally abundant resources. The establishment of industrial corridors, starting with the Coast-to-Capital Corridor, would safeguard Windhoek s water supplies, while creating new economic stimuli for growth and development. In this way, industrial corridors become platforms for decentralised economic development that benefit from our clean, sustainable and locally abundant resources, and power our national development ambitions. We have the tools to decouple our development from some of nature s vagaries. It is therefore time we asked whether we continue to wait for the rains, or start developing. detlof@voconsulting.net Page 1 of 1