As the Earth warms and the world’s population grows, competition for dwindling supplies of fresh water will intensify. As the biggest industrial user of water, the energy sector can either fight to maintain its share, or learn to conserve.
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The stakes are high. As Jim Rogers, CEO of Duke Energy, put it, “water is the new oil.”
For utilities especially, water is precious. They use it most of all to cool steam generators that may be driven by coal, natural gas, nuclear or even solar energy.
In 2008, at least one nuclear reactor, inAlabama, shut down briefly because water supplies dried up during the great Southeast drought that summer. Reactors in Western Europe shut down during the 2006 heat wave and were threatened by asharp drop in river levels again this year.
Most climate models predict that the drought-stricken Southwestern United States will grow even drier and hotter–like Texas–as global warming progresses. That will harm the energy sector along with agriculture, tourism and recreation, and many other kinds of industry.
“The competition between water and energy needs represents a critical business, security, and environmental issue, but it has not yet received the attention that it deserves,” said Diana Glassman, co-author of a report by the World Policy Institute and EBG Capital on “The Water-Energy Nexus.”
“Energy production consumes significant amounts of water, and vice versa. In a world where water scarcity is a major and growing challenge, water deserves a place on the energy agenda alongside cost, carbon and security considerations.”
The report notes that coal- and oil-fired power plants use twice as much water as natural gas-fired plants. Nuclear plants use three times as much.
Some of the biggest water hogs are oil extractors, according to the report. Mining the thick tar sands of Canada may require 20 times more water than conventional oil drilling. In parts of parched south and west Texas, natural gas fracking may be curtailed due to lack of water.
Renewable energy isn’t exempt from this problem. Although wind and solar photovoltaic plants use little or no water, water-cooled solar thermal plants use five times as much as gas-fired plants. (Some solar thermal producers, like BrightSource Energy, have switched to air cooling to save water at their desert sites, despite the loss of some generating efficiency.)
And biofuels fermented from soybeans or corn “can consume thousands of times more water than traditional oil drilling, primarily through irrigation,” according to the World Resources Institute.
The best solutions—because they carry so many benefits—are programs to conserve energy and water consumption. Water-related users in California account for about 19 percent of the state’s electricity consumption, so every gallon saved through drip irrigation or improved industrial processes saves energy. Similarly, every kilowatt-hour saved means less need to build or operate power plants that use precious water.
PG&E and other utilities are also installing new air or “dry” cooling systems on their power plants that save more than 90 percent of the water required by traditional “wet” cooling.
Last but not least, wind and solar photovoltaic plants will help out as they replace traditional fossil generation. A thousand megawatts of wind power can save 1.3 billion gallons of water annually, according to the National Renewable Energy Laboratory.




