Africa’s Water Imbalance Challenges – is Water Wheeling the Answer?

It wasn’t that long ago that Cape Town went through its Day Zero event, and Gauteng is currently facing a crisis and struggling to meet water demand. From a regional perspective, Zambia and Zimbabwe are facing the severe drought conditions affecting Lake Kariba, resulting in knock-on effects of major power cuts of up to 21hrs per day, as Zambia relies on 80% of its electricity from the hydro power station at Lake Kariba.

‘Water wheeling’ is a possible solution to the water shortages the continent faces, presented through the current imbalanced distribution system, whereby certain areas that have surplus water, like near large rivers or lakes, can help supply the drought-prone or water scarce regions.

Helgaard Muller, director at specialist project finance advisory company, Cresco, explains that “wheeling” in the context of electricity involves using a shared transmission network to transport electricity from a generator to a customer, often across large distances. “Adapting this concept for water distribution could offer innovative solutions for more flexible and efficient water management, especially in regions facing scarcity or distribution challenges,” says Muller.

The wheeling of energy allows third-party electricity to flow through an existing network owned by another party for the benefit of an off taker located at a remote location. This is generally accepted to result in increased efficiency, resource optimisation, and reduced reliance on central providers.

Examples where electricity wheeling of especially renewable energy is being applied can be found in Europe and closer to home in South Africa, as well as through the regional Southern Africa Power Pool or SAPP, as it is generally known.

“Water stress is a reality and not a new concept; according to the World Resource Institute, medium to extremely high water stress conditions can be expected in regions such as East and Southern Africa by 2050. It is critical that we start doing something about it,” says Muller.

Muller adds that water shortages will affect certain regions more than others and will require costly solutions. Challenges such as infrastructure constraints will require complex and expensive developing of new pipelines and reservoirs.

“For example, Gauteng does not have sufficient natural occurring water sources to support demand and is already dependent on a “water wheeling” arrangement from the Lesotho Highlands Water Scheme. Population growth in the Gauteng area, as well as economic growth demands have resulted in the current situation. Apart from local distribution improved infrastructure maintenance and construction projects, it is clear that additional water wheeling solutions (such as creating increased storage capacity in the Lesotho Highlands Water Scheme) will need to be implemented,” he explains.

Exploring the Concept of Water Wheeling

Like electricity wheeling, water wheeling would involve a system where entities such as governments, municipalities, and private suppliers could transport water across existing pipelines to supply-demand points.

Muller says that a potential deployment mechanism could be through the creation of a “common carrier” model, much like grid infrastructure in electricity. The infrastructure could be managed by a third party or the government.

Potential, Logistics and Limitations

There are many potential benefits of water wheeling, including the optimisation of resources from surplus regions to meet demand in deficit areas, and the environmental benefits resulting from the reduced need for new infrastructure, leading to less disruption of natural ecosystems. In addition, water wheeling is a reliable solution, since diverse sourcing reduces the risk of supply failure, and it also reaches new markets without directly investing in extensive infrastructure, offering economic flexibility.

Muller notes that logistics and technology required would include infrastructure upgrades and retrofitting of current systems to support a wheeling framework, as well as advanced metering and sensor networks to track water quality and flow. Like energy markets, a centralised data management system would be needed to monitor, regulate, and facilitate transactions. Importantly, legal, and regulatory frameworks would be required to establish water rights, pricing, and responsibilities in the wheeling context.

Challenges and Limitations of Water Wheeling

“There are some potential obstacles that will have to be faced and overcome for water wheeling to be a feasible solution,” says Muller. “Water quality management is critical to ensure consistent water quality across sources and during transport, and infrastructure will need to be adapted to a standardised wheeling framework. Other considerations include the balancing of pricing for suppliers and end-users, and the negotiation of inter-jurisdictional agreements for shared regional resources.”

The Future of Water Wheeling

“Water wheeling presents an innovative opportunity to address regional water shortages by optimising resources from areas of surplus and redistributing them to areas in need. While the concept faces challenges such as infrastructure constraints, water quality management, and regulatory frameworks, it offers promising solutions for efficient water management,” says Muller.

“By leveraging existing infrastructure and implementing a “common carrier” model, water wheeling could reduce the need for costly new pipelines, minimise environmental disruption, and create economic opportunities. As the pressure on water resources intensifies, exploring these forward-looking mechanisms will be essential for fostering sustainable, reliable, and equitable access to water across regions”.

Examples and Pilot Programs

Muller concludes by noting projects and models around the world that resemble water wheeling or could be seen as steps toward it.

Australia’s Murray-Darling Basin Water Market represents one of the largest managed water markets, where water is traded between different users (farmers, towns, environmental groups) across states and regions whereby water is transferred using a shared river system and canals, with water rights allocated based on availability and user needs. Infrastructure managed by both state and federal bodies enables the “wheeling” of water across state lines.

Another example is China’s South-North Water Transfer Project. This is one of the world’s largest water diversion projects, aimed at transferring water from the Yangtze River in southern China to water-scarce regions in the north, including Beijing and Tianjin. The project involves three major routes (eastern, central, and western) with canals, tunnels, and pipes transporting water over hundreds of miles. It can be viewed as a mega-scale version of water wheeling across different regions within China.

“By analysing both the successes and challenges of electricity wheeling and exploring its applications in water distribution, we can offer a fresh perspective on managing a precious resource in innovative ways,” concludes Muller.