Financial Implications of Parched Power: Insights from an Analysis of Indian Thermal Power Companies

Sourced from a World Resources Institute research paper, this document introduces a methodology to quantify the financial impacts of water shortages on India's thermal power sector, specifically analyzing five publicly listed companies between FY 2014-2017 and projecting future risks using IPCC climate models.

• Water shortages significantly impact the earnings of thermal power companies. An analysis of five Indian companies from FY 2014-2017 showed that electricity generation outages caused by water shortages led to quarterly earnings impacts of up to 17.4 percent.
• The severity of generation outages due to water shortages varies by cooling technology; power plants utilizing water withdrawal-intensive once-through cooling technologies were affected at a higher percentage than those using recirculating cooling technologies, which are less water withdrawal-intensive.
• The paper distinguishes between tools for measuring water risk, noting that drought indexes are more effective for evaluating acute waterL water-shortage risks, whereas baseline water stress is better suited for measuring chronic risks.
• Future water availability in India is projected to have significant uncertainties according to forward-looking climate scenarios, making the stress-testing of thermal power companies' water-related risk exposures essential for prudent investment.

APA

World Resources Institute (n.d.). Financial Implications of Parched Power: Insights from an Analysis of Indian Thermal Power Companies. https://www.wri.org/research/financial-implications-parched-power-insights-analysis-indian-thermal-power-companies

Chicago

World Resources Institute. Financial Implications of Parched Power: Insights from an Analysis of Indian Thermal Power Companies. n.d. https://www.wri.org/research/financial-implications-parched-power-insights-analysis-indian-thermal-power-companies.

Wikipedia

{{cite report |author=World Resources Institute |title=Financial Implications of Parched Power: Insights from an Analysis of Indian Thermal Power Companies |url=https://www.wri.org/research/financial-implications-parched-power-insights-analysis-indian-thermal-power-companies |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendfinancial, author = {{World Resources Institute}}, title = {{Financial Implications of Parched Power: Insights from an Analysis of Indian Thermal Power Companies}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/financial-implications-parched-power-insights-analysis-indian-thermal-power-companies}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }