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

The document highlights the critical dependence of India's thermal power sector on freshwater, noting that 90% of plants rely on it for cooling. It identifies a significant correlation between water stress and reduced plant utilization, while documenting a 43% increase in freshwater consumption between 2011 and 2016. The analysis warns that 70% of thermal plants will face increased water competition by 2030 and notes that water-related shutdowns cost the 20 largest utility companies over INR 91 billion between 2013 and 2016. It suggests that implementing cooling mandates and aggressive renewable targets could reduce freshwater withdrawals by 12.4 billion cubic meters.

• A vast majority of India's thermal power plants depend on freshwater for cooling, and a significant portion of these plants operate in high water-stress areas, which negatively impacts their utilization rates.
• Freshwater consumption by Indian thermal utilities rose by 43% from 2011 to 2016, increasing from 1.5 to 2.1 billion cubic meters annually, driven by higher energy demand and the use of freshwater-recirculating plants.
• Water shortages have caused substantial financial losses for India's largest power companies, with 14 of the 20 largest thermal utility companies experiencing shutdowns between 2013 and 2016, resulting in over INR 91 billion ($1.4 billion) in lost potential revenue.
• Future projections indicate that 70% of thermal power plants will face increased water competition by 2030, though freshwater withdrawals could be reduced by 12.4 billion cubic meters through cooling mandates and aggressive renewable energy targets.

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} }