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.
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
Sinclair House, 3 Glenside Crescent
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (0)1 85 64 10 22
3B Rue Taylor
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia
Thinking for a better world.
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.