![Victorian Environmental Water Holder Sarina Loo said the organisation requires less carryover in 2024-25 to meet expected environmental demand because water available for allocation in 2024-25 is expected to be high. Picture supplied by the VEWH
Victorian Environmental Water Holder Sarina Loo said the organisation requires less carryover in 2024-25 to meet expected environmental demand because water available for allocation in 2024-25 is expected to be high. Picture supplied by the VEWH](/images/transform/v1/crop/frm/7f5GEYimwWveccZe67yRBS/483a7510-e68f-4327-9530-a93781f3312d.jpg/r1947_0_4000_3000_w1200_h678_fmax.jpg)
The Victorian Environmental Water Holder intends to lease temporary carryover space in high-reliability water entitlement in Goulburn and Murray systems between April and June 2024.
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The carryover space will be traded on the water market from mid-April up to 30 June 2024..
Leasing temporary carryover space - also known as carryover parking - is a form of trade.
Parties with unused space lease it to other parties that have water allocation.
VEWH chief executive Sarina Loo said the VEWH required less carryover in 2024-25 to meet expected environmental demand because 2024-25 allocations were expected to be high.
"The VEWH has carryover storage space it does not intend to use in the 2024-25 watering year because environmental water delivery and allocation trade have made space available," Dr Loo said.
"The VEWH will make up to 30,000 megalitres (ML) of carryover space available for lease on the market and we expect this will benefit water users who want to carry over volumes that exceed their existing carryover limits."
In February the VEWH announced a sale of up to 47,000 ML of allocation water, also known as temporary water, in the Murray, Goulburn and Campaspe systems.
This was after an assessment that planned environmental watering needs for northern Victoria would be achieved in 2023-24.
The possibility of trading temporary carryover space was forecast in the VEWH's 2023-24 water allocation trading strategy.
Dr Loo said revenue from the trade would be invested in activities and strategic projects that fulfil the VEWH's existing and new policy obligations.
These include complementary works and measures projects, research and knowledge to improve Victoria's environmental watering program, and progressing Traditional Owner self-determination where cultural values align with environmental outcomes.
The temporary carryover space would be made available through selected brokers to minimise adverse impacts on the market.
Water broker H2OX business development manager Craig Feuerherdt, Bendigo, said carryover parking was common.
It allowed individuals to lease space from entitlement holders to carry water into the next season.
"30 gigalitres of parking space is a lot and will put some downward pressure on prices I'd expect - depending on what they are offering," he said.
"To my knowledge the VEWH has never leased parking pace before."
Most of the large water authorities have leased parking space previously, he said.
"I understand government agencies need to inform the market of trading intent but it amazes me why they leave these things so late in the season," he said.
"H2OX has done many gigalitres of parking already this year (as have other brokers)."
He said most corporate buyers would have already organised their parking requirements, "which means the VEWH will need to deal with lots more transactions to deploy the volume," he said.