Global power generation shortfall in 2030
A 2016 research paper in the Journal Nature predicts a 40% shortfall of available water across the globe by 2030 with effects not just for drinking, food production, hygiene and public health, but also for 98% of global electric power generation. Presented at the Asia-Pacific Energy Leaders’ Summit in New Zealand the early findings of a new report, ‘The road to resilience – managing the risks of the energy-water-food nexus’ from the World Energy Council is calling for immediate action in order to secure resilient energy infrastructure. Supported by a task force of over 140 experts from across the world, the report makes five recommendations: Improve understanding of the water footprint of energy technologies in order to mitigate the risks of stranded assets Account for the price of water, particularly in areas of water stress Consider a wider range of financial and insurance instruments to hedge short term risks such as adverse weather incidents and associated electricity price volatility Give investors the confidence to invest by providing them a full risk assessment that includes different climate and hydrological scenarios in financial analyses Provide a reliable and transparent regulatory and legal framework that takes into account water issues and competing stakeholders’ interest. Christoph Frei, Secretary General World Energy Council said: “The energy-water-food nexus poses a systemic risk which could impact the robustness of the energy supply and demand over many years to come. Power plants across the world could be affected by changes in precipitation patterns, which are combining with increasing competition between water users to adversely affect the resilience of energy services. “Clear co-ordination and integrated planning needs to take place now, or we will start to see the effects of water scarcity on energy supplies in the very near future. Assuming a water price during project planning is one […]