The Water-Energy Nexus: Strategic Considerations for Energy Policy-Makers

The report analyzes the 'water-energy nexus,' highlighting how energy production relies heavily on water for cooling and processing, while water distribution requires energy. It warns that increasing water scarcity—affecting billions of people by 2050—threatens energy security, as power plants may be forced to reduce output during droughts. The authors argue that energy policy-makers must integrate the economic value of water into cost-benefit analyses, revise infrastructure planning to account for water stress, and promote technological innovations to decouple energy growth from water demand.

• Global energy production is projected to increase by approximately 49% between 2007 and 2035, with non-OECD countries accounting for 84% of this growth, which will place additional strain on existing water sources.
• Water scarcity is expected to intensify significantly, with projections indicating that over 2.8 billion people across 48 countries will face water scarcity by 2025, and 40% of the global population will be affected by 2050.
• Most global power plants rely on water for essential operations, with 78% to 90% using it to create steam for turbines and utilizing it as a primary coolant for various energy sources, including coal and nuclear.
• Water scarcity creates direct trade-offs and operational risks for energy security; in extreme cases, power plants must lower output and suffer financial losses because human consumption and agriculture are prioritized over energy generation.
• Energy production processes beyond electricity generation are water-intensive, including hydraulic fracturing for oil and gas, and the manufacturing of photovoltaic solar panels, which can use over 1,000 cubic metres of water daily per facility.
• The report recommends that policy-makers recognize the economic value of water and incorporate water costs into the life-cycle cost-benefit analyses of new energy projects to avoid unintended disruptions.
• Technological innovation is essential to decouple energy and water demand, with examples including air-cooling and recycled wastewater in Australian coal plants, and the use of liquid sodium as a coolant in some Russian and Chinese nuclear reactors.

APA

World Economic Forum (2014). The Water-Energy Nexus: Strategic Considerations for Energy Policy-Makers. http://www3.weforum.org/docs/GAC/2014/WEF_GAC_EnergySecurity_WaterEnergyNexus_Paper_2014.pdf

Chicago

World Economic Forum. The Water-Energy Nexus: Strategic Considerations for Energy Policy-Makers. 2014. http://www3.weforum.org/docs/GAC/2014/WEF_GAC_EnergySecurity_WaterEnergyNexus_Paper_2014.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The Water-Energy Nexus: Strategic Considerations for Energy Policy-Makers |date=May 2014 |url=http://www3.weforum.org/docs/GAC/2014/WEF_GAC_EnergySecurity_WaterEnergyNexus_Paper_2014.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2014waterenergy, author = {{World Economic Forum}}, title = {{The Water-Energy Nexus: Strategic Considerations for Energy Policy-Makers}}, institution = {World Economic Forum}, year = {2014}, month = may, url = {http://www3.weforum.org/docs/GAC/2014/WEF_GAC_EnergySecurity_WaterEnergyNexus_Paper_2014.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }