PROJECTS

Water Market Design for Waikato River Basin, New Zealand

The problem

Mighty River Power faced competition from farmers and various urban authorities for water supply. The hydro electricity generator operates on a cascade of rivers in the North Island of New Zealand. Water rights were not explicitly defined, and various users believed they had customary rights to water from the catchment. Mighty River Power was concerned that water upstream abstractions would reduce the value of its generation plant. The company wanted to know if introducing tradeable water rights would provide a win-win solution.

How we helped

Castalia advised Mighty River Power how a market for tradeable water rights could be designed. We modelled expected market values and how a market could improve water resource allocation. We also advised on strategies Mighty River could follow in such a hypothetical market to maximize the value of its generation assets.

Impact

Our work gave Mighty River Power the information it needed to participate in the policy debate on the best system for allocation of water rights between competing users. While other stakeholders did not support the creation of a water market the dialogue enabled by our work helped Mighty River Power achieve improvements in water allocation.

The client

Mighty River Power

Our team

Alex Sundakov

Alex Sundakov

Executive Director

How can we help you?

How can we help you?

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (0)1 84 60 02 00
64-66 Rue des Archives
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.  Terms | Privacy | Credits | Sitemap

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap