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The International Energy Agency estimated global water withdrawals for energy production in 2010 at 583 billion m3 (representing some 15% of the world’s total withdrawals), of which 66 billion m3 was consumed. By 2035, withdrawals could increase by 20% and consumption by 85%, driven via a shift towards higher efficiency power plants with more advanced cooling systems (that reduce water withdrawals but increase consumption) and increased production of biofuel. Local and regional impacts of biofuels could be substantial, as their production is among the most water intensive types of fuel production. Despite ongoing progress in the development of renewables, the overall evolution of the global energy mix appears to remain on a relatively fixed path: that of continued reliance on fossil fuels. Oil and gas extraction yields high volumes of ‘produced water’, which comes out of the well along with the oil and gas. Produced water is usually very difficult and expensive to treat. Unconventional oil and gas production is generally more water intensive than conventional oil and gas production. Thermal power plants are responsible for roughly 80% of global electricity production, and as a sector they are a large user of water. Power plant cooling is responsible for 43% of total freshwater withdrawals in Europe (more than 50% in several countries), nearly 50% in the United States of America, and more than 10% of the national water cap in China. Similarities, differences and divergences: Beyond the water–energy nexus The decisions that determine how water resources are used (or abused) stem from broader policy circles concerned primarily with industrial and economic development, public health, investment and financing, food security and, most relevant to this report, energy security. The challenge for twenty-first century governance is to embrace the multiple aspects, roles and benefits of water, and to place water at the heart of decision-making in all water- dependent sectors, including energy. Energy is big business compared to water and can command a great many more resources of all kinds. Market forces have tended to play a much more important role in energy sector development compared with the management of water resources and the improvement of water-related services (water supply and sanitation), which have historically been more of a public health and welfare issue. Water resources have been considered by some to be a public good (though the economic definition of ‘public good’ does not apply to freshwater) – with access to safe water and sanitation recognized as a human right. Neither concept ordinarily applies to energy. Reflecting this economic, commercial and social disparity, energy attracts greater political attention than water in most countries. Growing demand for limited water supplies places increasing pressure on water intensive energy producers to seek alternative approaches, especially in areas where energy is competing with other major water users (agriculture, manufacturing, drinking water and sanitation services for cities) and where water uses may be restricted to maintain healthy ecosystems. Uncertainties related to the growth and evolution of global energy production, for example via growth in unconventional sources of gas and oil or in biofuels, can pose significant risks to water resources and other users. Policies that benefit one domain can translate to increased risks and detrimental effects in another, but they can also generate co-benefits. The need to manage trade-offs and maximize co-benefits across multiple sectors has become an urgent and a critical issue. WWDR 2014 3PDF Image | Water and Energy
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