Water tariffs growing at twice the global inflation rate
The Global Value of Water, a new White Paper, released information regarding the rate of water and wastewater tariffs increase.
Across 385 cities the average tariff has risen by 3.91% between July 2016 and July 2017, which is over double the global inflation rate.
It was also discovered that 67 new locations had introduced water and wastewater tariffs during 2017, bringing the total number of cities included in the survey to 452.
Portland, Oregon has the highest combined tariff with US$8/m3, whereas Denmark has the highest water cost of any of the countries with an average combined tariff of $7.07/m3 across the Danish cities included.
Findings from the same report also indicated that Singapore has increased its tariff for the first time in 17 years.
For the first time, US urban residents pay more for combined water and wastewater on average than city-based Western Europeans – annual growth of 5% over five years has seen US rates at $4.09/m3 which is 20 cents more than Western Europe.
This could be due to the need for aging infrastructure in the US to be revised.
The report was published by GWI and the Global Water Leaders Group in partnership with Arup.
“With the global increase by 3.91% reported this year, we are certainly moving in the right direction,” said Christopher Gasson, Publisher of GWI and co-author of The Global Value of Water.
“However, as many of the experts contributing to the White Paper have argued, tariffs need to double. With each year that passes, it becomes more clear that the water industry can only save itself if it can pay for itself.”
In South Africa some rates increased by 20%, with cities in Mozambique and Lusaka experiencing an increase because of rising costs of electricity and chemicals.
India has also seen tariffs grow because of the rise in power and operating costs.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.