Clean Energy Opportunities in California’s Water Sector

The report identifies the California water sector as a major electricity consumer, accounting for nearly 20 percent of the state's demand. It argues that while growing needs for groundwater pumping, desalination, and water recycling increase energy intensity, utilities can mitigate this by investing in on-site renewables, power purchase agreements, and demand response services. Key barriers include a lack of standardized electricity source data, regulatory misalignment, and financial constraints like Proposition 218.

• The water sector is a major electricity consumer in California, with the California Energy Commission estimating it accounts for nearly 20 percent of the state's electricity demand.
• Electricity demand in the water sector is projected to rise due to increased groundwater pumping during droughts, stricter federal water quality standards, and the adoption of energy-intensive supplies like recycled water and desalination.
• The potential energy increase from 19 planned desalination plants and expanded water recycling is estimated at approximately 5,230 GWh per year, which is equivalent to the electricity used by 756,078 average California households.
• A significant lack of standardized data exists regarding the sources of electricity used by most water and wastewater utilities, which hinders the state's ability to track emissions and identify clean energy opportunities.
• Water and wastewater utilities can generate new revenue by selling excess renewable electricity or renewable energy credits (RECs), accepting organic wastes for co-digestion, and providing fast-acting grid services.
• Direct investment in renewable energy helps water utilities avoid the price volatility associated with fossil fuels, providing more stable rates for customers.
• Diversifying into non-hydropower renewables reduces business risk for water utilities, as climate-driven droughts can severely reduce hydropower availability and increase costs.
• Water utilities can provide grid flexibility through demand response, such as temporary pump shutdowns or adjusting pumping rates, with some providers like PG&E offering incentives up to $200 per kW of demand shifted.
• Several structural and regulatory barriers impede progress, including the fragmentation of over 7,000 utilities, cumbersome interconnection processes for the grid, and Proposition 218, which complicates the generation of capital for new projects.

APA

Christian-Smith, J., & Wisland, L. (2015). Clean Energy Opportunities in California’s Water Sector. Union of Concerned Scientists. https://www.ucs.org/sites/default/files/attach/2015/04/clean-energy-opportunities-in-california-water-sector.pdf

Chicago

Christian-Smith, Juliet, and Laura Wisland. Clean Energy Opportunities in California’s Water Sector. Union of Concerned Scientists, 2015. https://www.ucs.org/sites/default/files/attach/2015/04/clean-energy-opportunities-in-california-water-sector.pdf.

Wikipedia

{{cite report |last1=Christian-Smith |first1=Juliet |last2=Wisland |first2=Laura |title=Clean Energy Opportunities in California’s Water Sector |publisher=Union of Concerned Scientists |date=April 2015 |url=https://www.ucs.org/sites/default/files/attach/2015/04/clean-energy-opportunities-in-california-water-sector.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{christiansmith2015clean, author = {Christian-Smith, Juliet and Wisland, Laura}, title = {{Clean Energy Opportunities in California’s Water Sector}}, institution = {Union of Concerned Scientists}, year = {2015}, month = apr, url = {https://www.ucs.org/sites/default/files/attach/2015/04/clean-energy-opportunities-in-california-water-sector.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }