Summary
The World Resources Institute report 'Over Heating' provides a framework for investors and analysts to evaluate how water scarcity and declining water quality impact thermal and hydroelectric power plants in South and Southeast Asia, specifically focusing on publicly listed companies in India, Malaysia, Philippines, Thailand, and Vietnam.
Key insights
- A significant portion of power capacity in South and Southeast Asia is located in water-stressed regions, with 74 GW—representing more than half of existing and planned capacity for major power companies—situated in areas considered water scarce or stressed.
- In India, 79% of new power capacity is slated for construction in areas already identified as water scarce or stressed, with specific companies including NTPC, Tata Power, and Reliance Infrastructure (including Reliance Power) increasingly locating new capacity in these areas.
- Water-related risks to power generation are exacerbated by climate change and demographic pressures, with India facing critical shortages in the next decade and Malaysia, Thailand, the Philippines, and Vietnam expecting localized pollution and shortages characterized by longer dry seasons.
- Technological solutions to mitigate water risk often involve trade-offs; for example, dry cooling systems for thermal power can reduce freshwater dependency but increase carbon emissions per unit of power output due to efficiency losses, while carbon capture and storage technologies impose 'water penalties'.
- While governmental support has historically limited the financial impact of water-related outages on shareholders, the liberalization of power markets and increasing freshwater scarcity may make these protections more costly to sustain and drive regulatory changes.
Cite the original document
- APA
- World Resources Institute (n.d.). Over Heating. https://www.wri.org/research/over-heating
- Chicago
- World Resources Institute. Over Heating. n.d. https://www.wri.org/research/over-heating.
- Wikipedia
- {{cite report |author=World Resources Institute |title=Over Heating |url=https://www.wri.org/research/over-heating |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{worldresourcesinstitutendover, author = {{World Resources Institute}}, title = {{Over Heating}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/over-heating}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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