Impact of India’s Energy Sector on Water Consumption

As India pursues ambitious climate change actions and sustainable development goals, the energy sector’s impact on water becomes increasingly critical. India, one of the world’s most water-stressed countries, is home to 18% of the world’s population but has only 4% of freshwater resources.

Water consumption in the energy sector currently amounts to around 30 billion cubic metres (“bcm”) per year and is expected to double by 2030. Key findings include the high water intensity of coal-fired thermal power plants, which use 72,623 litres per megawatt-hour (“MWh”), and gas-fired power plants, which use 10,611 litres per MWh. In contrast, renewable energy sources such as wind and solar have a much smaller impact on water.

The report also highlights the huge water requirement for biofuels, especially ethanol, and the water requirement for production and maintenance of solar and wind energy systems. It further examines the need for effective water management practices in green hydrogen production. The need for India to formulate a ‘Blue Deal’, similar to the European Union approach, is highlighted to reduce the water footprint of energy projects and ensure sustainable water management practices.

Addressing these water consumption patterns, the report provides comprehensive analysis and practical insights to support India’s journey towards sustainable development and net zero goals. It highlights the importance of integrating water audits, leveraging water bonds and investing in wastewater recycling and desalination to mitigate the looming water crisis.

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