SPECIAL FEATURE SEAR ENERGY ACCESS AND THE ENERGY–WATER NEXUS Diego Rodriguez, Anna Delgado, and Antonia Sohns, World Bank b    S TAT E O F E N E R GY ACCES S R EPO RT  |  2 0 1 7 Copyright © 2017 International Bank for Reconstruction and Development / THE WORLD BANK Washington DC 20433 Telephone: +1-202-473-1000 Internet: www.worldbank.org This work is a product of the staff of the World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work and accept no responsibility for any consequence of their use. 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Furthermore, the ESMAP Program Manager would appreciate receiving a copy of the publication that uses this publication for its source sent in care of the address above, or to esmap@worldbank.org Cover photo: © Asian Development Bank (via flickr CC lic) ENERGY ACCESS AND THE ENERGY-WATER NEXUS Diego Rodriguez, Anna Delgado, and Antonia Sohns, World Bank INTRODUCTION T he tradeoffs between energy and water have been mand or produce energy on site (World Bank, 2012; gaining international attention in recent years as Siddiqi and Anadon, 2011)—in 2010, energy require- resource demand grows, climate change impacts ments for desalination in the United Arab Emirates manifest, and governments struggle to ensure reliable were about 23.9 percent of total energy needs (World supply. Today, about 663 million people still lack access to Bank, 2012). improved sources of drinking water, and 2.4 billion people Such resource interdependencies could complicate possi- remain without access to improved sanitation (WHO/ ble solutions and make a compelling case to improve inte- UNICEF, 2015). Water insecurity affects every continent. grated water and energy planning to avoid unwanted Additionally, 1.1 billion people lack access to electricity future scenarios. (IEA/World Bank 2015). The international community recognizes the magnitude Water and energy resources are inextricably linked. Sig- of the tension between energy and water resources. In nificant amounts of water are needed in almost all energy 2014, the water and energy nexus was the subject of the generation processes, including electricity generation and World Water Development Report (WWDR), the UN’s fossil fuel extraction and processing (figure 1). Conversely, World Water Day, and Stockholm International Water Insti- the water sector needs energy to extract, treat, and trans- tute’s World Water Week. These efforts helped catapult port water. Energy and water are also both required to pro- the nexus onto global policy agendas, and coordinate duce crops, including those used to generate energy ongoing work to consolidate indicators and data in initia- through biofu-els. This relationship is what is known as the tives. Such efforts must be developed and enforced water-energy nexus, and it exists within the larger water-en- ergy-food nexus (US DOE, 2014; WWAP, 2014; Bazilian et al 2011; Stillwell et.al, 2011). FIGURE 1  Water is used throughout energy generation process The impacts and tradeoffs of the energy-water nexus are being felt today: • In the United States, power plant operations are being affected by water variability, such as low water flows or high water temperatures (US DOE, 2013). • In India, a thermal power plant has been shut down due to a severe water shortage (Rajput, 2013). • In France, nuclear power plants have been forced to reduce or halt energy production due to high water temperatures that threaten cooling processes during heat waves (WEF, 2011). • In Sri Lanka, China, and Brazil, recurring and prolonged droughts are threatening hydropower capacity (Bar- rucho 2013; Sirilal 2012; Stanway 2011). • In China and India, expansion plans for coal power plants could become unfeasible due to water scarcity (Adelman, 2012). • In the Middle East and North Africa, desalinating water is substantially increasing energy demand, and pushing water utilities to explore ways to reduce energy de- Source: Thirsty Energy, World Bank, 2014   1  2    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 because water constraints challenge the reliability of exist- • Dry cooling systems use air instead of water to cool ing energy operations, require costly adaptive measures, down the steam, meaning that no water is used or con- and threaten the viability of proposed projects (IASS 2015; sumed in the process. IEA/WEO 2012). • Hybrid cooling systems combine wet and dry cooling Despite the interconnectedness of water and energy approaches. Although there are different types of sys- resources, energy planners and governments often make tems, they still fall between wet and dry in terms of decisions without accounting for existing and future water cost, performance, and water use. constraints. Planners in both sectors often remain ill-in- formed about the drivers of these challenges, how to The cooling system employed by the power plant affects address them, and the merits of different technical, politi- power plant efficiency, capital and operating costs, water cal, management, and governance options. To tackle the con-sumption, water withdrawal, and environmental im- energy and water challenges in the context of each coun- pacts. Those tradeoffs must be evaluated case-by-case, try’s needs, data gaps must be addressed, and indicators taking into consideration regional and ambient conditions that reveal resource use and cascading effects across sec- and existing regulations. Figure 3 illustrates the tradeoffs tors are needed. Integrated water and energy planning between various systems. Among plants with the same enhances sustainable development, national security, and type of cooling system, the amount of cooling water with- economic stability. Such planning is especially needed in drawn and consumed is mainly determined by the plants’ regions where climate change, urbanization, and popula- efficiency (Delgado 2012). tion and economic growth are going to exacerbate water In the case of hydropower, it can be generated only if scarcity (Rodriguez et al 2013; Hadian and Madani 2013). water is available in reservoirs or rivers, given that hydro- As policies are implemented to ensure that affordable, power plants depend on the energy of moving water to reliable, and sustainable energy is available to all, it is criti- turn turbines and generate electricity. Water may be lost cal to consider the surface water and groundwater impacts during hydropower operations due to evaporation from that may result from them. There will be tradeoffs in all dammed water upstream from the plant; the scale of losses cases, but in analyzing and quantifying the impacts, the depends on site location, design, and operation. Run-of- international community can ensure long-lived and sus- river hydropower plants store no water and have water tainable successes. evaporative losses near zero, but they are less likely to be used for generation of peak loads or during dry seasons when there is no or limited river flows. HOW THE ENERGY SECTOR USES WATER As for wind turbines, they do not require water for their Most thermoelectric power plants require large amounts of operation to generate electricity, and solar PV systems water, mainly for cooling purposes. About 80 percent of require only minimal quantities of water for washing the the world’s electricity is generated in thermal power plants solar panels (Macknick et al 2014; Turchi et al 2010). How- (such as fossil fueled, nuclear, and concentrated solar ever, because most PV systems are located in arid places, power plants) (IEA 2013). In the United States and Europe, obtaining the needed water can be challenging. these plants account for about 40 percent of the freshwa- In the case of energy extraction—such as oil, gas, and ter withdrawn1 each year, as much as is withdrawn by the coal, as well as unconventional fuels (like shale gas and tar agriculture sector (Maupin et al 2014; Rubbelke and sands)—water is required for extracting, transporting, pro- Vogele 2011). Yet unlike agriculture, the power sector does cessing, and refining the resource (Mauter et al 2014; IEA, not account for a large share of water consumed, given 2012; Fry et al 2012). Operations may consume, or remove that many power plants return most of the water with- for use from the immediate water environment, large drawn back to the environment. quantities of water for drilling, washing, and processing. Most thermal power plants heat water to produce Water use varies depending on the fuel type, the method steam to drive the turbines to produce electricity.2 The of extraction, geology, the degree of processing required, water is heated using various energy sources (coal, oil, nat- the geography, and the climate of the site under devel- ural gas, uranium, solar energy, biomass, and geothermal opment. As for biofuels, water is increasingly used both energy) depending on the type of power plant. After pass- to grow the feedstock (like soy, sugar cane, corn, and ing through the turbine, the steam is cooled, usually with switchgrass) and to process it into biofuels (Stone 2010; water drawn from a river, lake, or ocean, and condensed to NRC 2008). start the cycle again (figure 2). The amount of water with- drawn and consumed by the power plant depends chiefly LINK BETWEEN WATER AND UNIVERSAL on the type of cooling3 system used (Rodriguez et.al. 2013; ENERGY ACCESS Macknick et.al. 2012; NETL 2009; Averyt et al 2008). Given that almost all energy generation processes require • Once through cooling requires large amounts of water, water, its availability is a necessary condition for reaching but consumes a very small fraction of it. universal energy access worldwide. At the same time, uni- • Closed loop cooling systems (the most common are versal energy access can contribute to better water access cooling towers) withdraw much less water, but consume (by facilitating water extraction, treatment, and delivery) most of it as water is evaporated. and water security.4 Whereas insufficient or intermittent electricity access can limit water availability (by restricting pumping, treatment, and distribution), reliable and afford- ENERGY ACCESS AND T H E ENERGY–WAT E R NE X U S   3  FIGURE 2  Simplified Diagram of the steam cycle in thermal power plants Source: Thirsty Energy, World Bank 2014 FIGURE 3  Tradeoffs among different types of cooling systems Source: Thirsty Energy, World Bank 2014 4    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 able access can ensure a continuous supply of the required which has installed over 12 GW of wind energy due to water quantities of safe water as well as wastewater treatment pressures on the energy sector, the power sector is now services. Improved energy access can also support the use more resilient to drought (US DOE 2014). of energy-intensive technologies (such as desalination or More hydropower capacity may help other sectors more powerful groundwater pumps), which are expected access water if the multipurpose benefits of the reservoirs to expand rapidly as easily accessible freshwater resources are developed. For example, reservoir water not only pro- are depleted. vides power generation but can also be used for irrigation, But if present planning continues to neglect energy’s water supply, flood control, and recreation. Plus hydropower impact on water, universal access to modern energy ser- dams may control water availability for downstream users, vices could have a negative impact on water resources, as providing water in times of drought and limiting water flow almost all energy production processes require water. In during inundating rains, despite the potential losses of 2030, almost half of the world population will be living in water from reservoirs due to evaporation. However, hydro- areas of high water stress if no new policies are introduced power projects may also materially impact the quality of (WWAP 2012), and greater demand for energy could put downstream flows (the timing, route, and duration), thus additional pressure on already constrained water resources. imposing burdens on fish and other aquatic life (IRENA, Universal access to energy may also increase the con- 2015). In a world of energy shortages and increasing water tamination risk of water resources due to energy extraction variability, multipurpose hydropower dams can provide and transformation processes. The energy sector not only clean energy and help allocate scarce water resources to withdraws and consumes water—thus altering water flow major economic sectors. Therefore, joint planning of sus- patterns and water quantity—it also generates large tainable power and water infrastructure in river basins is key amounts of wastewater. Energy operations can greatly to addressing the energy-water nexus challenge. impact water resources through post-production water dis- The impact of biofuels and biodiesel on water use var- charged and possible contamination of aquifers during ies substantially, depending on where the biofuel crop is drilling (IRENA, 2015). Sustainable water management planted, whether it required land conversion and needs practices are needed to prevent energy companies from irrigation, and if it replaces a more or less water-intensive significantly impacting the surrounding environment’s crop (Gerbens-Leenes, 2011; Stone et al, 2010). In China water quality through spills, leaks, inefficient treatment of and India, ambitious plans to boost domestic production wastewater, or other contamination events. of biofuels could place additional pressure on scarce water Water-related risks can affect the energy sector and supplies if traditionally irrigated food crops are used to slow or hinder the progress toward universal energy access. meet bioenergy production targets. Yet, if biofuels are Changing water supply patterns due to unanticipated grown in rainfed regions, they will have less of an impact weather activity, reallocation of water resources into other on existing water allocations. In Brazil, producing a liter of sectors, or new regulations, may constrain opportunities ethanol from sugarcane requires only 90 liters of irrigation for power generation or energy extraction. Climate change water to supplement the rainwater, but in India, a liter of is further intensifying energy insecurity through changing ethanol can require 3,500 liters (IWMI, 2008). Water needs rainfall and surface runoff averages, increased water tem- and impacts should therefore be carefully assessed during peratures, and increased probability of extreme weather the development of bioenergy programs. conditions (Cohen et.al, 2014; US DOE, 2013; van Vliet, Solar-based solutions can offer an alternative to grid- or 2012; Rubbelke and Vogele, 2011). Water scarcity, variabil- diesel-based electricity in many areas. Solar water pump- ity, and water quality can constrain or raise the cost of ther- ing can support access to water and irrigation or reduce mal power generation and energy extraction. Yet, in most dependence on grid electricity or fossil fuels, while mitigat- cases the cost of accessing water is small in comparison to ing environmental impacts and reducing energy subsidy the revenue generated. burdens. India plans to replace 26 million groundwater pumps with solar pumps, despite high capital costs and a A role for renewable energy lack of established solar pump markets. But if solar initia- Can fostering renewable energy to achieve universal energy tives are not implemented correctly, the use of solar water access improve the picture? The reality is that it can either pumps can result in excessive and unsustainable water improve or deteriorate water availability and quality withdrawal, given negligible operational costs. Solar water depending on the energy source and technology used. heaters are generally price competitive with electricity and Raising the share of water-intensive renewable energy gas-based heating and are making their way in emerging sources (like irrigated biofuels and some thermal power markets (IRENA, 2015). Although desalination based on sources) can increase demand for water, and thus potentially solar energy may still be expensive, technology advances exacerbate competition with other sectors and create social will continue to drive cost reductions. Saudi Arabia’s Solar tensions among different users. However, when looking at Water Desalination initiative highlights how sustained the whole life cycle of power generation, renewable energy investment and research will make solar energy a compet- generally requires less water than fossil fuels. If renewable itive energy resource in the long term (IRENA 2015). energy sources that require small quantities or no water (like photovoltaic and wind energy) are developed, the energy A role for energy efficiency sector’s water needs could be reduced (IRENA, 2015; Liu Besides weighing energy sources, policy makers should et.al, 2014; Arent et.al, 2014; Rogers et.al, 2013; Macknick also focus on boosting energy efficiency. On the supply et al. 2012; Munish et.al, 2011). In the arid state of Texas, side, old and inefficient power plants can be replaced by ENERGY ACCESS AND T H E ENERGY–WAT E R NE X U S   5  plants that save energy and water and decrease GHG efficient pumps (Barry 2007). emissions. For example, an old coal power plant with an efficiency of 25 percent can require nearly twice the amount of water as a new coal power plant with the same type of cooling system but have an efficiency of 36 per- MOVING FORWARD cent. Combined-cycle gas turbines (CCGTs) have higher Sustainable energy for all will be achieved if water and thermal efficiencies, requiring less water for cooling (IEA, energy interactions are taken into account and their asso- 2012). Moreover, as most energy generation processes ciated impacts on one another are considered in planning. require water, energy efficiency gains on the demand-side Due to the complicated nature of energy and water can decrease demand for energy and save water through resource management and incomplete knowledge of sys- initiatives such as energy efficient appliances and improved tems, there is a need to create consistent frameworks for insulation. analysis, definitions of terms, and datasets that enable the However, using less water- intense cooling technolo- water and energy sectors to understand each other and gies may decrease energy efficiency. Thermal power plants communicate effectively. Fostering collaboration among can improve water use efficiency by using dry cooling5 sys- energy and water stakeholders for more sustainable solu- tems—cutting the amount of water needed by up to 90 tions will be crucial in achieving universal energy access. percent (US DOE, 2014). Nevertheless, these systems neg- Reliable and comprehensive data on the energy-water atively affect the power plant’s efficiency, particularly in hot nexus is scarce, inhibiting informed decisions on opera- and dry climates. Dry-cooled systems also increase opera- tions and investments, and making it challenging to moni- tional costs by 2-16 percent, making them more expensive tor long-term planning efforts. Data on energy consumption than closed loop wet cooling systems (Maulbetsch and and production by country is usually available with greater DiFilippo 2006). It is, however, acknowledged that all accuracy and abundance than data on water. When energy options carry a series of tradeoffs that must be identified data is collected in detail, there is often no information on and quantified. water requirements or water risks in operations. Monitor- In the water sector, greater energy efficiency may ing availability and use of water resources represents an reduce the cost of delivering water and save water. Elec- ongoing challenge, especially given variable distribution tricity costs are usually 5–30 percent of total operating of water over time and space, and the difference in data costs among Water and Wastewater Utilities (WWUs)—and availability of surface water versus ground water by coun- the share is typically higher in developing countries, reach- try. Lack of data constrains water resource management ing 40 percent or more. Such energy costs often contribute and makes it difficult to prioritize water in decision-making to high and unsustainable operating costs that directly because there is less evidence on the importance of water affect the financial health of WWUs (ESMAP 2012). Since to economic growth. As a result, policies to improve treating and distributing water is energy intensive, leakage energy access and efficiency are implemented without reduction is a cost-effective way to save water and energy, considering impacts on water resources and the impor- and is largely implemented in unison with more energy tance of water to socio-economic development. BOX 3 Climate Change Should Not be Left Out of the Conversation Climate change is intensifying energy and water insecurity due to extreme weather conditions – like prolonged drought periods, powerful storms, and floods – which put populations, livelihoods, and assets in danger. A recent report by the U.S. Department of Energy (US DOE, 2013) highlights energy sector vulnerabilities to climate change and extreme weather, noting that most risks are water-related. The effects and intensity of climate change will vary regionally, as populations’ experience variable precipita- tion, surface runoff, stream flow, deviation from rainfall averages, and increased probability of extreme events. Altered precipitation and evapotranspiration patterns are predicted to reduce runoff in southern Africa, the Med- iterranean basin, Central America, the southwestern United States and Australia, among other places (FAO 2008). This will likely increase competition for water among sectors (like agriculture, energy, municipal supply, and the environment). The combined effects of population growth, climate change, and increasing hydrological variability will result in a heightened reliance on energy-intensive water supply options (like water transport or desalination plants) to supplement urban water supply as freshwater supplies diminish. Moreover, as temperatures rise, more water will be needed by the energy sector for cooling water per unit of energy produced, and for cooling houses, offices, and factories. Climate change will further impact the energy sector through changes in energy demand, and the need to transition to energy supply options involving low or zero greenhouse gas emissions. Some options, such as carbon capture and storage or irrigated biofuels, could further increase pressure on water resources (WWDR 2014). 6    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 In most countries, it is difficult to obtain water-related more advanced cooling systems (that reduce withdrawals data from the energy sector. There is a lack of data from but increase consumption per unit of electricity produced) power plant operators and mining and extraction compa- and by expanding biofuels production, which by 2035 con- nies on: (i) water withdrawal and discharge rates by the sume nearly as much water as power generation. energy sector; (ii) the use of alternative water sources in the energy sector (like saline water and wastewater); and Life cycle analysis. To fully understand the water require- (iii) the type of cooling system used in power plants. This ments by energy sources, a life cycle analysis should be shortfall makes it difficult to suggest credible assumptions completed that accounts for water used in the production on the energy sector’s water needs (Madani and Khatami, of the energy facilities. IRENA (2015) argues that renew- 2015). Plus the environmental impacts of the energy sec- able energy usually requires less water than fossil fuels tor on water resources are rarely documented. Govern- based on a life-cycle assessment of water use in energy ments must work to ensure all energy production facilities production. For example, a solar thermal power plant report water-related information in the same manner that might require more water than a coal power plant that uses energy operators report on GHGs emissions. the same cooling system to generate electricity; however, Most existing global estimates on the water needs of when the water needed for coal mining is accounted for, the energy sector are derived from assumptions. Some solar thermal requires less water. The vast differences in sources use an average number of m3/GJ for each energy water demand across the energy sector are challenging source, multiplied by the future energy demand, but this is and critical to consider when analyzing and quantifying misleading, given that water requirements vary signifi- potential water constraints. cantly even within the same energy process or energy source. Water requirements vary at all stages of energy Water risk. Measuring companies’ water risk will be operations, and depend on several factors—like technol- important to understand how business strategies adapt to ogy employed in energy generation and production, changes and heightened uncertainty. Water risk indicators regional variable conditions (such as climate), and effi- aim to highlight regional differences and complement data ciency of the process. Thus, there is no single “water fac- on water uses. The Carbon Disclosure Program (CDP) tor,” or water requirement per unit of energy produced, report and its water questionnaire are one initiative that for a specific energy process (Madani and Khatami, 2015). seeks to provide comprehensive analysis of water risk to In 2012, the IEA published a series of macro-level indi- companies and governance, and develop accounting and cators measuring global trends of global water use for strategy indicators (CDP, 2014b). According to the CDP, energy production, which help capture upcoming global physical water risks such as water stress and floods are the changes (although not with enough detail to represent most prevalent water-related threat for utilities; other risks realities at the operational and planning levels in develop- include deteriorating water quality and regulatory uncer- ing countries). Between 2010 and 2035, as figure 4 shows, tainty. In 2014, 50 percent of utility companies and 41 per- withdrawals by the energy sector will increase by about 20 cent of energy companies experienced water-related percent, but consumption will rise by a dramatic 85 per- business impacts (CDP, 2014a). cent (under IEA’s New Policies Scenario). These trends are driven by a shift toward higher efficiency power plants with Environmental impact. Policies and regulations that focus FIGURE 4 Global water use (withdrawal and consumption) for energy production by fuel and power generation type Withdrawal Consumption 800 140 700 120 600 100 500 Fuels: 80 Biofuels bcm bcm 400 Fossil fuels 60 Power: 300 Bioenergy 40 Nuclear 200 Oil 20 Gas 100 Coal 0 0 2010 2020 2035 2010 2020 2035 Source: IEA 2012 ENERGY ACCESS AND T H E ENERGY–WAT E R NE X U S   7  FIGURE 5 A Mexican power plant uses wastewater for cooling purposes (Simplified diagram of Project Tenorio, an innovative solution to reduce groundwater over-extraction) BENEFITS FOR THE POWER PLANT TENORIO PROJECT* The wastewater used by the power plant is MEXICO 33% cheaper and more sustainable than the previously used groundwater WASTEWATER REUSE FOR COOLING The plant has saved $18M in 6 years This WASTEWATER is used in the cooling towers instead treated WASTEWATER is of freshwater treated wastewater piped to the power plant WASTEWATER from the city net  reduc)on  of   groundwater  extrac)ons  of   at  least  48  million  m3  in  6   years   Thermal WASTEWATER POWER PLANT treatment plant** $ BENEFITS FOR THE WASTEWATER TREATMENT PLANT This extra revenue covers almost all operation and maintenance costs *  For  more  informa9on  on  the  project:  hIp://www.reclaimedwater.net/ **Wastewater  treatment  plant  picture  is  by  Tracey  Saxby,  Integra9on  and   data/files/240.pdf   Applica9on  Network,  University  of  Maryland  Center  for  Environmental  Science   Source: Thirsty Energy, World Bank, 2014 solely on how much water the energy sector uses—without future water availability—including climate change impacts accounting for how this use affects the environment— and increasing future competing water demands—across could encourage unsustainable practices. For example, sectors. The energy sector needs to assess if that water is reducing the amount of water withdrawn from a source per used sustainable now and into the future, and it is impera- energy produced is not always better for the environment tive account for and anticipate any future tradeoffs among if the quality of discharged water prohibits its future use. different water users. There are opportunities to jointly develop and manage Local/regional context. Variations in water resources water and energy infrastructure and technologies that reflect factors as diverse as geography, population, eco- maximize co-benefits and minimize negative trade-offs. In nomic growth, demand, energy mix, and climate change. Mexico, new water reuse regulations and a creative project These factors can combine to create “hot-spots” where funding contract (Built Own Operate Transfer -BOOT) the water-energy nexus is more challenging than else- incentivized waste water reuse in San Luis Potosi. Instead where. Thus, it is vital to understand the regional chal- of using fresh water, a power plant uses a treated effluent lenges and devise context specific solutions to address the from a nearby wastewater treatment plant in its cooling nexus in these critical hot-spots. Electricité de France (EDF) towers. This wastewater is 33 percent cheaper than is leading the Water for Energy Framework (W4EF) initia- groundwater, which has resulted in $18 million of savings tive to help energy actors assess and report the relations for the power utility (in 6 years) (Lazarova et.al. 2013). For between energy production activities and local water envi- the water utility, this extra revenue covers almost all opera- ronments through a common terminology and methodol- tion and maintenance costs of the WWTP (figure 5). More- ogy. This framework will account for quantity and quality over, groundwater extractions have been reduced by 48 related uses of water resources, and relate usage to local million cubic meters in 6 years (equivalent to nearly 20,000 conditions (EIP 2015). Olympic-sized swimming pools). Other examples include combined power and desalination plants, combined heat Infrastructure investments. Choices and decisions made and power plants, and energy recovery from sewage water today about which extraction facilities to develop and (biogas production in waste water treatment plants). where, which power plants to build, which to retire, and Besides the pursuit of new technical solutions, new which energy or cooling technologies to deploy and political and economic frameworks need to be designed develop, are critical. Energy infrastructure is designed to to promote cooperation and integrated planning among last for decades and thus decisions should account for sectors. Integrated policies and planning efforts will help 8    S TAT E O F E L E C T RI CI TY ACCES S R EPO RT  |  2 0 1 7 ensure sustainable and efficient use of water and energy a negative impact on water resources as water is necessary resources. In order to plan and invest in a more integrated for almost all energy production processes and water-re- manner, water requirements can drive policy decision mak- lated risks can affect the energy sector and hinder progress ing and be prioritized in how the energy mix is selected. toward energy access goals. Water requirements and water-related impacts of project Understanding and analyzing the inter-sectoral linkages development should be considered during the planning between water and energy is necessary to optimize the stage. Harmonized approaches to collecting and sharing management of water and energy resources. But without data on water and energy production will enhance a coun- reliable and comprehensive data on water-energy issues— try’s ability to manage water and energy resources sustain- the current situation—it is difficult to make informed deci- ably. In the energy and water sectors, it is critical that data sions on policies, infrastructure development, operations, gaps are addressed and new tools are developed to mea- development investments, and long-term planning efforts. sure water use. This would help ensure that water is being Thus, governments should encourage energy production allocated and used appropriately and efficiently. The facilities to report on water use and energy companies to World Bank’s Thirsty Energy Initiative, for example, works collect data on water-related risks. They should also with countries to analyze sustainable development of their encourage decisions to reflect social, political, and envi- water and energy resources, and to foster cross-sectoral ronmental contexts. planning. The international community should continue to raise awareness regarding the inextricable link between the world’s water and energy systems. Through these efforts, CONCLUSIONS water and energy’s external stressors, such as population Achieving universal energy access can improve water secu- growth and climate change, will be better understood. The rity, but to be sustainable, it must incorporate water into energy and water sectors should share data and document the planning and implementation of energy investments. best practices so successes can be replicated and sustain- The water sector can benefit from universal energy access able efforts are catalyzed. Improved information could by improving access to reliable, affordable, and safe water drive technological innovation and spur adoption of more supplies. Further, the energy poor and water poor are often effective policies and data collection methods. These prac- the same people. By achieving universal energy access, we tices will increase security and access through sustainable can also achieve universal access to an improved water resource use and contribute to resilient water and energy source. However, meeting rising energy demand may have resources management. NOTE . 1. Water withdrawal is typically defined as the amount of water that is taken from a water source (lake, river, ocean, aquifer, etc.). Water consumed is the water that is not returned to the water body after use. Water discharge is the amount of water that is returned to the water source and its quality matters due to environmental reasons. These requirements for and impact on water resources can differ dramatically depending on the type of process or technology employed. 2. Open-cycle power plants (mainly used as peak power plants using gas as fuel) do not use the steam cycle to turn turbines and thus do not require water for cooling. 3. The other processes for which water is required include the steam cycle, ash handling, and flue-gas desulfurization, among others. Although these processes consume relatively little water, their effluents contain pollutants and should be treated before being returned to the water source. From a plant-level economic standpoint, therefore, such processes can incur very significant costs related to wastewater treatment. 4. Water security refers to “the capacity of a population to safeguard sustainable access to adequate quantities of and acceptable quality water for sustaining livelihoods, human well-being, and socio-economic development, for ensuring protection against water-borne pollution and water-related disasters, and for preserving ecosystems in a climate of peace and political stability” (UNU, 2013). 5. Other ways to increase water efficiency in power plants may be the use of non-fresh water resources for cooling (such as sea water or waste-water) (US DOE 2009), and the practice of recycling and reusing water in energy extraction facilities. ENERGY ACCESS AND T H E ENERGY–WAT E R NE X U S   9  REFERENCES Adelman, Jacob. 2012. “China, India Lack Water for Coal Water-Constrained World. 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Water Use in Parabolic Trough Power Plants: Summary Results from SPECIAL FEATURES To download the State of Electricity Access Report, overview, and Special Features, visit: http://esmap.org/SEAR