NSW MURRAY REGULATED WATER SOURCES. Water allocations Assessment process & allocation update
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1 NSW MURRAY REGULATED WATER SOURCES Water allocations Assessment process & allocation update Department of Industry Lands & Water R. Mannik MIL presentations, 5 September 2018
2 This talk Resource assessment process overview Murray is a shared interstate resource Water allocation process key principles Allocation update Climate context Status of current water resources Water Allocation Statement Page 2
3 River Murray system shared resource Page 3
4 River Murray system legislative framework Murray-Darling Basin Agreement Basin Plan Commonwealth level, interstate agreements Water Act 2007 Water Management Act 2000 = framework for water sharing in NSW Individual water sharing plans NSW Murray and Lower Darling Regulated Rivers Water Sources 2016 Page 4
5 River Murray system shared resource Water sharing rules under the Murray-Darling Basin Agreement NSW and Victoria share storage inflows (plus Kiewa River) (50:50) NSW and Victoria retain own tributary inflows Page 5
6 River Murray system shared resource Page 6
7 River Murray system shared resource Water sharing rules under the Murray-Darling Basin Agreement NSW and Victoria share storage inflows (plus Kiewa River) (50:50) NSW and Victoria retain own tributary inflows NSW and Victoria share storage airspace (50:50) NSW and Victoria must equally meet SA share SA can defer portions of their monthly delivery and store in upstream airspace first to spill, and considered delivered if storage spilled. Page 7
8 River Murray system shared resource River managed by MDBA (operations, bulk accounting) States advised of shares Page 8
9 Water allocation process key principles Page 9
10 Water allocation process key principles Water in storage - Hume, Dartmouth, Menindee, Lake Victoria Water In Storages - end of July 2018 Total = 5172 GL NSW = 1957 GL (38%) Vic = 2954 GL (57%) SA = 261 GL (5%) NSW - Hume 394 GL NSW - Lake NSW Victoria - Lake 192 Victoria GL 142 GL Vic - Dartmouth 1928 GL NSW - Dartmouth 1371 GL Vic - Lake Victoria 180 GL Vic - Hume 846 GL SA - Lake Victoria 0 GL SA - Hume 120 GL SA - Dartmouth 141 GL Page 10
11 Water allocation process key principles Water in storage - Hume, Dartmouth, Menindee, Lake Victoria Useful flows within weirs & en route - State tributary inflows - Excludes orders/diversions, supplementary access flows Minimum future inflows - Conservative 99% AEP inflows - Snowy scheme assured inflows - Murrumbidgee IVT - Any recent rainfall calculated recessions Adjustments - Trade, internal spills, meter reading updates Page 11
12 Water allocation process key principles Subtract bulk-level commitments - Evaporation - Transmission losses to SA border - SA entitlement (dilution, non-dilution) - MDB Agreement required reserves NSW share as reported in Statements Page 12
13 NSW Murray Water balance 15 August 2018
14 Water allocation process key principles Subtract bulk-level commitments - Evaporation - Transmission losses to SA border - SA entitlement (dilution, non-dilution) - MDB Agreement required reserves NSW share as reported in Statements Subtract retail-level commitments NSW internal commitments (WSP) - Already allocated NSW volumes - Planned environmental water (BM-A, Wakool, RMIF) - Reserves Page 14
15 Water allocation process key principles Reserves Towns, S&D General Security General Security Carryover High Security Conveyance Env Water Page 15
16 NSW water sharing plan priorities Licenced water is shared across the following categories: Domestic and stock Local water utility High security WSP expects these to be fully allocated on 1 July (97% for HS, 100% HS subcategories) Conveyance General security Then available water is incrementally allocated here Page 16
17 Entitlement distribution* NSW Murray Regulated River - town water supply ** 37 GL - domestic and stock 17 GL - high security 190 GL - conveyance 330 GL - general security 1,674 GL WSP expects these to be fully allocated on 1 July (97% HS 100% HS subcategories) Then available water is incrementally allocated here * Volume at 100% allocation. ** Includes local water utility, HS(town water supply) licences. Page 17
18 NSW Murray resource distribution September 2018 Towns, S&D 54 GL e-water (89* GL) Total = 990 GL High Security 185 GL (97%)** Irrigator (431* GL) Conveyance 90 GL Total GS Carryover 520 GL Rules-based Env Water 141 GL * indicative breakdown of held environmental water holdings (OEH, TLM, CEWH), refer to note. ** includes 1GL (100%) for HS subcategory (community & education, Page 18
19 Allocation update context This year has been hot and dry BoM has reported that NSW had its driest January to July period since 1965, with July being the 4th highest temperatures on record. Inflows this calendar year are among the lowest 6% of historical record, i.e. 94 out of 100 years would have more flows than we ve seen. In general, Victorian tributaries contribute more water than NSW tributaries. This has been accentuated this year due to climate drivers, causing much of the rainfall to fall over the Victorian Alps. Page 19
20 Allocation update status NSW Murray resources Menindee Lakes offline, no Murrumbidgee IVT contributions Over half (520 GL out of total 990 GL) of NSW share of Murray is held by general security holders (in carryover) Total carryover volume is equivalent to 31% of entitlement, >80% is held by irrigators Water sharing plan requires conveyance to build to 165 GL before any general security allocation Currently conveyance is now allocated 90 GL (75 GL shortfall) Environmental commitments shortfall of 60 GL (Wakool, RMIF) Planned environmental water Barmah-Millewa Allowance (B-MA) of about 239 GL fully borrowed Any resource improvement in coming months will first accrue to conveyance licence category Page 20
21 Allocation update regional comparison Comparison to Murrumbidgee allocations Similar overall water availability Murrumbidgee: 22% carryover (408 GL) + 6% GS (113 GL) = 28% (521 GL) Murray: 31% carryover (520 GL) Comparison to Victoria allocations Victoria generally receives more tributary inflows than NSW Particularly this year due to climate drivers more rainfall over Vic Alps Substantial Victorian reserves support allocations in year 2 HRWS is a different product, also smaller total volumes so increase faster Page 21
22 Allocation update spring climate outlook The climate outlook is for a hot and dry spring (September to November). Page 22
23 Allocation forecasts under various inflow scenarios (as at mid August 2018) Allocation NSW Murray Valley Outlook 1-Oct-18 Probability as at 15 August 2018 Gigalitres Feb-19 Probability Allocation 25% 100% GS Alloc % 55% GS Alloc % GS Alloc. 25% % 30% GS Alloc. 29% GS Alloc. 50% 18% GS Alloc. 75% % 14% GS Alloc. 0% GS Alloc. 90% 0% GS Alloc. 99% % 0% GS Alloc. as at 15 August 2018 Carryover Carryover 500 Conveyance Environmental HS TW, S&D 0 Conveyance Environmental HS TW, S&D This figure provides indicative improvements in general security allocations for two forecast snapshots, the 1st of October 2018 and 1st of February The allocation improvements are indicative only, and do not constitute guaranteed allocations. As of 15 August 2018, General Security allocation is at 0 per cent, and under 99% inflow conditions, will remain the same for the rest of the water year. Page 23
24 Allocation updates will continue to be published fortnightly Page 24
25 Many changes over recent years to include more and better information Page 25
26 Feedback on the Statements welcomed Page 26
27 Thank you
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