PARCHED POWER: WATER DEMANDS, RISKS, AND OPPORTUNITIES FOR INDIAS POWER SECTOR

The report finds that India's thermal power sector is heavily dependent on freshwater, with nearly 90% of generation relying on it for cooling. This dependency has led to significant generation losses, including 14 terawatt-hours in 2016 alone, and over $1.4 billion in potential revenue losses for the top 20 utility companies between 2013 and 2016. The authors highlight that plants in high water-stress regions have a 21% lower average capacity factor. To mitigate these risks, the paper recommends mandating water data disclosure, standardizing reporting, and prioritizing a shift toward solar PV and wind energy, which could significantly reduce both water withdrawal and consumption intensities by 2027.

• Approximately 90 percent of India's thermal utility power generation relies on freshwater for cooling. In 2016, freshwater recirculating systems were the most common technology, accounting for 80% of total thermal generation, while freshwater once-through systems accounted for about 7%.
• Between 2011 and 2016, freshwater consumption by Indian thermal utilities rose by 43%, increasing from 1.5 billion cubic meters to 2.1 billion cubic meters. This increase was driven by a 40% growth in electricity generation and a higher share of recirculating cooling systems. Conversely, total freshwater withdrawals remained relatively stable at roughly 18.8 billion cubic meters in 2016 because no new freshwater once-through plants were built after 2011.
• Water shortages caused significant power generation losses in India. In 2016, the sector lost 14 terawatt-hours of potential thermal generation, which canceled out more than 20% of the growth in total electricity generation from 2015. Between 2013 and 2016, water shortage was the fifth most frequent reason for forced outages, accounting for nearly 2% of all outages.
• There is a strong correlation between water stress and plant performance. Freshwater-cooled plants in high water-stress regions have an average capacity factor 21% lower than those in low- and medium-stress regions. This trend persists even when controlling for fuel type, plant capacity, and unit age.
• Water shortage risks exist even in water-abundant regions. For example, in April 2016, the Farakka plant in West Bengal lost about 45% of its generation. Similarly, the Tiroda plant lost 69% of its generation in June 2016, and the Raichur plant lost 37% in June and July 2016 due to water unavailability.
• Financial impacts of water shortages are substantial for major utilities. Fourteen of India's 20 largest thermal utility companies experienced water shortage-induced shutdowns between 2013 and 2016, resulting in over $1.4 billion in total potential revenue losses. In 2016 alone, nine companies lost more than $614 million, representing about 2.3% of their total revenue from power sales.
• Future water competition is expected to increase. By 2030, more than 70% of India's existing thermal utilities are likely to face increased water competition from agricultural, urban, and industrial demands. About one-third of these utilities are projected to see a 20% or higher increase in competition.
• Transitioning to renewable energy is the most effective way to reduce water dependency. Under a projected 'scenario 2' for 2027, if ambitious renewable targets and stringent water regulations are met, freshwater consumption would stay below 2016 levels despite a 60% increase in electricity generation. In this scenario, water withdrawal intensity would decrease by 76% and consumption intensity by 25%, with the power mix shift toward solar PV and wind driving nearly 98% of the consumption reduction.

APA

Luo, T., Krishnan, D., & Sen, S. (2018). PARCHED POWER: WATER DEMANDS, RISKS, AND OPPORTUNITIES FOR INDIAS POWER SECTOR. World Resources Institute. https://wriorg.s3.amazonaws.com/s3fs-public/parched-power-india-0130.pdf

Chicago

Luo, Tianyi, Deepak Krishnan, and Shreyan Sen. PARCHED POWER: WATER DEMANDS, RISKS, AND OPPORTUNITIES FOR INDIAS POWER SECTOR. World Resources Institute, 2018. https://wriorg.s3.amazonaws.com/s3fs-public/parched-power-india-0130.pdf.

Wikipedia

{{cite report |last1=Luo |first1=Tianyi |last2=Krishnan |first2=Deepak |last3=Sen |first3=Shreyan |title=PARCHED POWER: WATER DEMANDS, RISKS, AND OPPORTUNITIES FOR INDIAS POWER SECTOR |publisher=World Resources Institute |date=January 2018 |url=https://wriorg.s3.amazonaws.com/s3fs-public/parched-power-india-0130.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{luo2018parched, author = {Luo, Tianyi and Krishnan, Deepak and Sen, Shreyan}, title = {{PARCHED POWER: WATER DEMANDS, RISKS, AND OPPORTUNITIES FOR INDIAS POWER SECTOR}}, institution = {World Resources Institute}, year = {2018}, month = jan, url = {https://wriorg.s3.amazonaws.com/s3fs-public/parched-power-india-0130.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }