Water Market Australia

Description

Australia needs solutions

Already the driest continent, Australia’s water crisis is coming to a head. The Australian climate is erratic, and long droughts alternating with periods of higher rainfall make the development of coherent water regulation regimes difficult. With recent news of more water rationing in the southern Murray-Darling basin after a warning that drinking water could not be guaranteed beyond next year if the drought persists, it is clear that action needs to be taken. Very rapidly over the next decade, Australia will become one of the most important markets in the world for water scarcity solutions, and an opportunity for overseas investors.

Water Market Australia helps you provide solutions

Water Market Australia will help you to understand how the market works at a state and local level, where the greatest needs are, and how to make it work for you. It maps out the sector, explains the systems and outlines the opportunities. It also profiles local companies so that you can identify potential partners and competitors and lists all the major water projects so that you can easily identify opportunities.

Industrial and rural water use

The report covers the industrial water market, looking at the opportunities in industry and in the mining sector, providing an overview of Government incentives for industries seeking to rationalise their water use through recycling and reuse. The Australian water market is in large part driven by the rural sector. The importance of this cannot be overlooked, as it is in this sector that the millennium drought has had most impact. This report considers in detail the impact of the drought on the rural water industry including a section on water trading. There is also a section discussing water efficiency programs and sourcing water from aquifers.

Detailed presentations are featured on:

• An overview of how Australia works - its complicated government infrastructure, the nature and driving forces of the economy and how to work effectively in these conditions
• Government incentives for industries seeking to rationalise their water use through recycling and reuse
• The volatile nature of the environment and how the government is responding to its crises ­ including an outline of the opportunities for water scarcity solutions
• The structure of the water sector - how it works as part of the government and the myriad of quangos that proliferate it
• Water efficiency programs and sourcing water from aquifers.

Excel Datasets for manipulation include:

• A directory of large and small companies involved in the water business including suppliers, service providers and infrastructure support (eg legal and administrative).
• A listing of Water projects valued at more than $10 million Australian dollars (including information on size of project, estimated completion time, contact information, and likelihood of project being completed)
• A directory of all water utilities in the country with contact details and some financial information providing details of latest income and expenditure available at time of compilation.

Forecast Data

The future of the Australian Water Market lies in current government water reforms, where expenditure will be linked to projects that tie in with the National Water Initiatives, and with the rationalisation that will come out of infrastructure reforms and improvements. For instance, improvements in the Murray Darling Basin will be the result of improved water trading, accompanied by more rational use of water so that crop and feed demands don’t clash. The report includes vital forecast information about how the rural market is going to evolve and forecasting of local government municipal reforms.

Executive summary

Australia's water crisis is the first one we have seen which can be directly attributed to climate change. It is driven by a sudden drop in the water flowing into urban water systems: five major cities Melbourne, Brisbane, Sydney, Perth and Adelaide, have seen their water storage levels fall to around half their hundred year average.

The immediate cause of the scarcity may be the El Niño conditions prevailing since 1996, however there is a strong conviction that it is essential to develop new "drought proof" water resources for the future, to minise the effect these conditions will bring.

The policy response to the water crisis has been at every level, with the federal government putting in place a national strategy in its “Water for the Future” proposal, the state governments moving towards statewide water authorities and agencies, and utilities prioritising the development of new water resources and introducing measures to manage demand.

Most significantly there has been a dramatic increase in capital expenditure from just over A$2 billion per year six years ago to more than more than A$4 billion per year going forward. Much of this expenditure is going towards large projects for desalination, water reuse, storage and long distance water transfer. These projects are on a scale currently unmatched anywhere in the world outside the Middle East.

We forecast desalination capacity in Australia to rise from 628,000m³/d in 2008 to 4.2 million m³/d in 2017. Similarly there will be an increase in water reuse capacity from 752,000m³/d to 3.6 million m³/d. This will reduce the pressure on demand, which has been heavily suppressed in both the urban and agricultural sector in recent years.

This expansion is expected to cost the public sector and industrial water users, A$20.4 billion over the next decade - a very high price per cubic metre of additional capacity in comparison to the cost of new water resources achieved elsewhere in the world.

With the total capital expenditure by the municipal water sector expected to top A$50 billion over by the end of 2017, it is likely that there will be some questioning of the cost effectiveness of current delivery models.

Utility operating revenues are expected to increase from A$11.3 billion in 2008 to A$20.7 billion in 2017 as higher capital costs, and the costs of operating the new assets, are passed on to consumers.

The total water market, including commercial water equipment, irrigation equipment, municipal capital and operating expenditure, and capital expenditure by industry is worth $16 billion. The overall growth rate over the period will not exceed 6%. This reflects the fact that capital expenditure is already at a very high level.

By 2017 Australia's water sector will be very different. It is likely to move towards the Israeli model where urban centres reduce their dependence on natural water resources to free these up for the agricultural sector. The infrastructure will be in place for improved water efficiency both in urban and agricultural supply This will reposition the country to face climate change without an impact on its economy.

Contents list

·                     Foreword
·                     Executive summary
·                     Background
·                     The political scene
·                     The Australian economy
·                     Overseas trade
·                     Financial sector
·                     Labour market
·                     Water sector and the economy
·                     Australian climate and environment
·                     Geography
·                     Latitude
·                     Rainfall
·                     El Nino/La Nina
·                     Australia's water resources
·                     Millennium drought
·                     Adelaide and the Murray River
·                     SA and Adelaide water projects
·                     Water storage
·                     The Murray-DarlingBasin
·                     Australian coastal salinity levels
·                     Water sector structure
·                     The response to scarcity
·                     Government actions
·                     Federal water sector infrastructure reform
·                     State water sector infrastructure reform
·                     Physical infrastructure reform
·                     National water initiative
·                     Water storage
·                     Australian aquifer usage
·                     The Great Artesian Basin
·                     New water initiatives
·                     Western corridor recycled water project
·                     Toowoomba
·                     Raising national water standards program
·                     Waterwise council program
·                     Demand management
·                     Water tariffs
·                     Towards standardised pricing
·                     Australian water trading
·                     Water trading market
·                     Water trading Volumes and Prices
·                     Investing In Water
·                     Market size and forecast
·                     Water usage in Australia
·                     The municipal water market
·                     Project procurement and private sector participation
·                     The Alliance model
·                     Waste Water and Waste Water Management
·                     Agricultural water market
·                     Mining market
·                     Coal seam gas
·                     Total market size
·                     Municipal market forecast
·                     Industrial market forecast
·                     The desalination market
·                     The water reuse market

Datasets

·                     WSAA Utilities Data
·                     Water Companies
·                     Australia Water Market Forecast
·                     Australia Water Projects
·                     Australia Desalination Projects