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Investment requirements for water infrastructure are even higher [than for energy infrastructure]. For developing countries alone, it has been estimated that $103 billion per year are required to finance water, sanitation and wastewater treatment through 2015. 5.2 Opportunities for synergies in water and energy infrastructure An array of opportunities exists to co-produce energy and water services and to exploit the benefits of synergies. However, the current political and economic incentive system still favours independent sectoral outcomes over cross-sectoral results. Sustainable solutions require a systems approach of integrated solutions rather than addressing issues in isolation. Water and energy issues should be addressed holistically, as the optimal solution for one can have negative impacts on the other. Such common solutions can be achieved only if there is communication between sectors, and if the right incentives are in place. In addition to new technical solutions, new political and economic frameworks need to be designed to promote cooperation among sectors and integrated planning. For example, given the different uses of dams, hydropower sustainability can be improved through integrated water and energy planning and management. Most thermal power plants require large amounts of water to dissipate the excess produced heat (‘waste heat’) to the environment (Section 3.3.1). Therefore, the siting of power plants should take into account their interaction with water resources, water facilities and other sectors that compete for water supplies. There are also ways to utilize waste heat and thus decrease the amount of water needed for cooling, as explained in examples below. Wastewater treatment plants can generate energy from sludge produced at the plant. Another opportunity to mitigate nexus trade-offs is to improve water and energy efficiency and conservation. Improving efficiency in the water domain saves energy for treatment and supply and therefore reduces the amount of water needed by the power sector. When the power sector shifts towards a more efficient operation, less water is used as less waste heat will have to be dissipated. Thus, policies and integrated plans that encourage energy and water conservation can reduce future energy and water requirements. 5.2.1 Combined power and desalination plants Combined power and desalination plants (also known as hybrid desalination plants) are an example of integrated infrastructure to produce drinking water and electricity. This solution is especially suited to extreme arid areas such as the Middle East, where there is very little water available and where desalination is likely to expand (Chapter 12). Examples of hybrid desalination plants are the Fujairah plant in the United Arab Emirates and the Shoaiba plant in Saudi Arabia. Desalination is a more energy intensive process than traditional water treatments (Section 2.3). Despite this, desalination might be necessary in some regions of the world to meet the growing demand for industrial and domestic water supplies. Hybrid desalination plants use an innovative process to integrate desalination with thermal power generation, which improves efficiency and lowers the electricity cost of desalination processes. Waste heat from the power plant (steam) is used as the heat source for the desalination process. Integrated water and energy production has several benefits. First, waste heat becomes a useful part of the process, decreasing the volume of water required for cooling purposes in the plant. Second, the cost of desalinating water decreases, making it more economically attractive, and the integrated system is more efficient than the stand-alone option (a separate power plant and a separate desalination plant) (Pechtl et al., 2003). However, there are also disadvantages. The integrated system is more complex to operate, mainly due to seasonal variability. During winter, demand for electricity can decrease (in warmer climates) while demand for water can remain relatively constant all year long. Demand variability can be managed, but when the two demands are not aligned, the system runs below maximum efficiency. 5.2.2 Alternative water sources for thermal power plant cooling Thermal power plants require water mainly for cooling. The quality of this water does not need to meet drinking water standards, so there is a potential to explore alternative non-freshwater sources that could be used for the purpose. Although using alternative water sources can 50 CHAPTER 5 THEMATIC FOCUSPDF Image | Water and Energy
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