New Water Supply

Australia, and especially South Australia, is short of water. One problem is misuse. Another problem is overuse. A third problem is that natural water supplies aren't going to be as predictable in the future as they have been in the past.

Australia will be a drier place in the 21st Century than it was in the 20th. For its part, the Water Services Association is estimating Australia could be 800 gigalitres short of water by 2030. Federal Parliamentary Secretary for Water Malcolm Turnbull estimates the shortfall could be as high as 1,200 gigalitres. That's twice the annual consumption of Sydney, Australia's largest city.

When the crunch comes, South Australia will be in the firing line. South Australia could be 37 gigalitres short of water, 16% of consumption, by 2025 if drought continues and certain demand projections are met.

If drought continues, South Australia could find itself short of water

Source: Waterproofing Adelaide

In terms of future water supply options, desalination compares very favorably against recycling, rainwater tanks and other measures. Two separate studies, the first by the South Australian government and the second by the Wentworth Group of Concerned Scientists, have concluded the same thing: desalination is cheaper than recycling in many cases.

Desalination is competitive compared to alternatives	Desalination can be half the cost of recycling
Source: "Waterproofing Adelaide," consultants' studies	Source: "Blueprint for a National Water Plan," Wentworth Group, 2006

By reducing the drawdown by Upper Spencer Gulf communities of water from Murray, more water can flow down the waterway. This will have two benefits. The first is that environmental flows will be increased, a main objective of state and federal governments. The second is that these increased flows can be used, in an emergency, as a backup water supply for Adelaide.

By shifting the Upper Spencer Gulf to desalinated water, the Upper Spencer Gulf gains a certain future water supply while South Australian taxpayers will save up to $20 million annual subsidies paid by SA Water to pump Murray River water to the region.

What's more, the power generation process will consume no taken from external sources. Gas, coal and nuclear power plants all require fresh water to create steam. These water consumption needs in the future could sow the seeds for conflict with urban household or agricultural use. It could also lead to brown outs and black outs if drought continues and inadequate water supplies are available to run power generation.

In the case of Acquasol's Point Paterson facility, all the water required for power generation will be generated onsite through desalination. This means that regardless of how little rain falls, or how low rivers and natural water sources fall, there will always be adequate water for power generation.

"This is the worst drought in history. The environment is in real trouble." Karlene Maywald, Minister for the Murray River, South Australia

"SA Water is concerned about the high climate change risks to water supplies including greater extreme weather events such as more persistent drought, impacts on water quality, coastal aquifers and low lying infrastructure." Anne Howe, chief executive, SA Water