Parched Power: Water Demands, Risks, and Opportunities for India’s Power Sector

This executive summary details the water risks facing India's thermal power sector, noting that 90% of plants rely on freshwater and 40% experience high water stress. It highlights significant revenue losses (INR 91 billion) due to water-related shutdowns between 2013-2016 and warns that 70% of plants will face increased water competition by 2030, while suggesting that renewable targets and cooling mandates could save 12.4 billion cubic meters of freshwater.

• The thermal power sector in India relies heavily on freshwater, with 90 percent of plants using it for cooling. Between 2011 and 2016, freshwater consumption by these utilities increased by 43 percent, rising from 1.5 to 2.1 billion cubic meters annually, driven by higher energy demand and the use of freshwater-recirculating plants.
• Water stress significantly impacts the operational efficiency and revenue of India's thermal power plants. 40 percent of plants face high water stress and have utilization rates 21 percent lower than those in low or medium stress regions. From 2013 to 2016, 14 of the 20 largest thermal utility companies suffered shutdowns due to water shortages, resulting in an estimated revenue loss of over INR 91 billion ($1.4 billion).
• Future projections indicate increasing water competition and potential for reduction. By 2030, 70 percent of thermal power plants will face increased competition over water, and 19 of the 20 largest companies are expected to see water use competition increase by 3 to 28 percent across their portfolios. However, implementing proposed cooling mandates and achieving aggressive renewable targets could reduce freshwater withdrawals by 12.4 billion cubic meters.

APA

World Resources Institute (n.d.). Parched Power: Water Demands, Risks, and Opportunities for India’s Power Sector. https://www.wri.org/parched-power-water-demands-risks-and-opportunities-indias-power-sector

Chicago

World Resources Institute. Parched Power: Water Demands, Risks, and Opportunities for India’s Power Sector. n.d. https://www.wri.org/parched-power-water-demands-risks-and-opportunities-indias-power-sector.

Wikipedia

{{cite report |author=World Resources Institute |title=Parched Power: Water Demands, Risks, and Opportunities for India’s Power Sector |url=https://www.wri.org/parched-power-water-demands-risks-and-opportunities-indias-power-sector |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendparched, author = {{World Resources Institute}}, title = {{Parched Power: Water Demands, Risks, and Opportunities for India’s Power Sector}}, institution = {World Resources Institute}, url = {https://www.wri.org/parched-power-water-demands-risks-and-opportunities-indias-power-sector}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }