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Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District PowerPoint Presentation
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Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District

Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District

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Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District

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  1. Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District

  2. Today's discussion … • Key feedback from customer workshops and surveys • Key findings from WIF • Bulk water • Infrastructure options • Environment • On-farm management • Possible path forward • Water and channel system • Next steps • Customer reference group • Next season

  3. Recap… WIF Atlas Technical Workshops Customer Consultation Bulk Water Environment Infrastructure On farm Draft Options Paper Detailed Technical Work Final Options Paper Government / Agency consultation Today’s discussion Customer engagement and consultation

  4. 1. Customer Feedback

  5. What you told us you would like… • Key Issues • Fit-for-purpose water • Sufficient volume to support historic production levels • Water at affordable price, and • Fix leaky channels • Other concerns raised • Farming viability • Agricultural practices • Future of the district

  6. 2. Key Findings:Bulk Water

  7. Bulk water options investigated… • River water • Desalination of recycled water • Reverse Osmosis (RO) • Nanofiltration (NF) • Electrodialysis Reversal/Ultra Violet • Trading options • North/South pipe line • Macalister Irrigation District • Metro water • Water from Melbourne Pool via entitlement or supply agreement • Recycled water • Continuation of supply from WTP • Enhancements • Storage • Increased flow rates • Groundwater • Storm water harvesting

  8. River water supply – climate scenarios… Lerderderg River Seasonal Inflows (at Sardine Creek)

  9. Salinity at Melton Reservoir and Werribee Weir…

  10. Desalination of recycled water… • 3 technology 0ptions Investigated… • Reverse Osmosis (RO) • Nanofiltration (NF) • Electrodialysis Reversal (EDR) and disinfection • Capital cost • based on taking salt from recycled water and mixing it with the standard recycled water • This is the cheapest option

  11. Desalination recycled water supply cost… • Assumptions… • 1500EC target • 65ML day supplied

  12. Trading options… • North South Pipeline • Government committed to maximum 75,000 ML • Commitment to Northern Irrigators that this would be maximum amount • Option to access water from northern Victoria not available • MID – Thomson Dam • 11,000 ML Entitlement on key rivers in the MID • 30% can be transferred across the system • Water must be purchased and water transferred through district. • Cost to transfer is $430 per ML for 2009/10. • Must be delivered with another product (river / recycled water)

  13. Other options… • Groundwater • Fully allocated and currently not available • Deeper aquifer is salty and not suitable without high cost treatment • Storm water • MWC currently investigating storm water harvesting options that may provide water for irrigation in the long term

  14. 2. Key Findings:Infrastructure Options

  15. Infrastructure options …. • Pipelining • Options investigated included piping 44 km • Pumped pressure pipe system, and • Gravity piped system • $44m and subject to cost escalation • Has a life expectancy of 80 years • Provides highest efficiency 90%+ • Full cost recovery over 25 years

  16. Infrastructure options …. • Channel lining • Options investigated included • Lining with polypropylene roll out liners • Spray-on membrane liners • Life 25 years • Expected efficiency 85% • Cost ranges from $16m – $20m • Water measurement • Remote control regulators installed at key sites • Improve measurement and operation flexibility • Customer outlets – metering to use magflow meters • Total cost – approx $2m

  17. 2. Key Findings:Environmental issues

  18. On-farm issues … • Commercial considerations • Cost of production • Choice, mix and rotation of crop types • Scale of operation and constraints • Land values, planning regulations and impacts of development on farming • Water resource availability • Security of water supply to grow crops • Scope to reduce water use by utilising other irrigation methods • Agronomy and water quality • Identification and costing of best practice requirements for irrigation, soil salinity and nutrient management • Environmental implications • Understanding of potential impacts • Social factors • Social, cultural, adoption of technology, management practices and business decisions

  19. 3. Possible Path Forward

  20. Possible future supply approach… • Government announced access to 2000ML of Melbourne’s water • Potential to use most metro water in summer to reduce recycled water salinity to 1,600 EC’s • Total flow rate increased from 60ML/d to approximately 80ML/d • Potential to ‘bundle up’ and offer a ‘shandy’ (river / recycle / metro water) product at a single price from 2011/12 • Means everyone pays, everyone gets salinity benefit • We would only access metro water when • River water allocations are low and • Salinity is high • Supply may include a mix of river water (when available), recycled water and potable water to lower salinity • Channel lining, metering and some automation

  21. What does this mean for customers… • Improved outcome • More water available for irrigation • Access to lower salinity water to improve soil salinity and plant health • Reduced application of soil conditioners and other additives and therefore less on farm cost • Potential to increased on-farm production, yield and crop quality • Long term supply contract • Improved viability of farming • Leads to environmentally sustainable outcomes for the district • The trade off • Higher price for recycled /metro water • Greater take or pay commitment

  22. Recycled water… • Currently contracted to 2019 • MOU being developed with Melbourne Water • Revision of current agreement from 1 July 2011 for 20 to 25 years • Use current base price from the recycled plant (continued subsidy) • 60 ML day flow rate; 11,100ML per year contract volume – best endeavors above that (as per now) • Additional costs to be paid by growers for significant service improvements as determined via regulatory processes, e.g. • Storage (reliability) • Larger pipe and pump (higher flow rates ) • Desire for increased ‘take or pay’ component – currently 25% • Best endeavors reliability – as per now • Improvement options • Storage • Flow rate enhancements

  23. Effective price comparison…

  24. Effective charges…

  25. 4. Key FindingsNext steps

  26. Consultation process… • Establish Customer Reference Groups • WID and BMID • Seek nominations • 1 WBMCCC for each group • 6 customer representatives for each group • Stakeholder representatives • Appoint independent chair • Terms of reference to include • Bulk water supply options • Pricing matters • Infrastructure issues (e.g. channels and storages) • Environmental matters • Contract matters (recycled water, other bulk supplies) • How do you get onto the Customer Reference Group?

  27. SRW in consultation with CRG… • Finalise district strategy • Communicate strategy to all customers • Develop new customer contracts • Develop business case to support infrastructure investment • Implement strategy • Transition to new operating arrangements 2011-2013

  28. District update… • Recycled water supply • Continue supply up to 68ML day • River water • Expect minimum 6% starting allocation • Expect water quality to improve with increase in allocation • Metro water • Available for next season • Discussion required on how this is offered • Delivery price in the order of $960 per ML for 2010/11 • Detail to be worked through with CRG

  29. Questions?