Insights of Water and Energy Nexus in India

1. Introduction

The interconnection between water and energy is a critical yet often overlooked aspect of sustainable development. The water-energy link refers to the intricate relationship between water usage and energy production, where each is dependent on the other. Water is essential for producing energy through processes like hydroelectric power, cooling in thermal power plants, and the extraction of fossil fuels. Conversely, energy is needed for pumping, treating, and distributing water.

India's energy sector is heavily reliant on water. Over 75% of the country's electricity comes from water-intensive thermal power plants that use coal, natural gas, or nuclear energy. These plants require a lot of water to cool, generate steam, and run efficiently to the extent that producing one megawatt-hour of electricity in a coal-fired power plant can use between 1,500 and 2,000 liters of water. In contrast, electricity is critical to India's water resource management. Agriculture, which consumes nearly 80-90% of India's total water, is heavily reliant on electricity sources. With over 60% of irrigated land depending on groundwater, electricity for pumping systems has become a significant portion of rural energy demand. India has more than 20 million electric and diesel-powered groundwater pumps, leading to substantial energy consumption. Consequently, addressing loss and unsustainable practices in one will improve efficiency in the other. Ignoring snags in either, will worsen expenditure and unsustainable outcomes in both.

Now, considering the interdependence between energy production and water consumption,  this blog discusses the present status, challenges and sustainable solutions. 

Water Energy interdependence | CAG

2. Status of the Water-Energy Nexus in India 

2.1 Electricity Generation: Over 70% (214 GW) of the nation's power comes from thermal power plants, which consumes water for power generation.  India's electricity sector, predominantly coal-based, is highly water-intensive. Nuclear energy is another water intensive electricity -production process.  India’s National Water Policy highlights that the electricity sector accounts for around 8-10% of total water withdrawals (761 x 109 m3), a figure expected to rise as energy demand grows.  For example, the installed capacity increased to 4,46,190 MW in June 2024 from 2,48,554 MW in March 2014. Coal-based power installed capacity increased from 1,39,663 MW in March 2014 to 2,10,969 MW in June 2024. Between March 2014 and June 2024, the installed capacity of the renewable energy sector increased from 75,519 MW to 1,95,013 MW. 

Coal power plant capacity 

2.2 Water Distribution: Water supply and treatment processes are energy-intensive. According to the Central Electricity Authority (CEA), around 7-8% of India’s electricity consumption goes towards extracting groundwater, treatment, and distribution. This demand is growing as urbanization expands and groundwater levels continue to deplete. India's water crisis is multifaceted, with key issues including:

Scarcity: India has 18% of the world’s population but only 4% of its water resources. Many regions experience severe water shortages, affecting agriculture, industry, and domestic use.

Quality: Pollution from industrial discharge, agricultural runoff, and inadequate sewage treatment compromises water quality, posing health risks.

Inefficiency: Traditional irrigation methods and aging infrastructure lead to significant water loss.

3. Agricultural Purpose:  Agriculture, which consumes nearly 80% of India's water resources, is electricity-dependent, especially for groundwater irrigation. Subsidized electricity rates for farmers have led to over-extraction, further straining both energy and water resources. Moreover, inefficient irrigation techniques contribute to water wastage, which, in turn, requires more electricity for extraction and transport. For example, canal systems, covering approximately 40% of irrigated land, experience significant losses due to leakage and evaporation, resulting in a wastage of about 30-40%, according to the Central Water Commission. 

    

4. Challenges in the Water-Energy Nexus 

4.1 Infrastructure constraints: India's aging infrastructure results in high transmission losses in energy. Losses because of outdated energy infrastructure and leaks in water distribution networks increase the burden on water resources, integral to the production of power, intensifying the demand.  For example,  transmission losses were around 15.40 % in 2022 - 23, much higher than the global average of 8%. This indicates that a substantial part of the generated electricity is not reaching the consumer. Moreover, leakage in water distribution leads to non-revenue water (NRW), which refers to the portion of water produced by a utility that does not generate revenue. NRW is a critical issue as it directly impacts water prices, conservation, utility revenues, and the equitable distribution of water resources. 

Schematic description of Non Revenue Water |  CAG 

In India, about 38% of NRW is officially reported, compared to the World Bank's global average of 30%-35%. However, actual losses are likely higher than reported losses. Kolkata and Bengaluru are two of the most affected cities, with NRW losses of approximately 50% and 49% respectively. These significant losses are primarily due to poor pipeline quality and inadequate maintenance. 

4.2 Climate change: Climate change is introducing variability in water availability, particularly due to altered monsoon patterns, glacial melt, and droughts.  As per   a World Meteorology Organization (WMO) report, the increase in recent global average temperatures was 1.54 °C. Increasing temperatures and changing weather patterns impact both energy and water production and demand.  

4.3 Urbanization and Industrialization: India is rapidly  urbanizing, with cities demanding more energy and water resources. As per a United Nations prediction, by 2047 India’s urban population is projected to increase by 328 million. Urban centers face water shortages due to increased demand, and increased groundwater depletion. This in turn increases energy demand for pumping and transporting water over longer distances. Water-intensive industries that put tremendous strain on freshwater supplies include textiles, thermal power plants, chemicals, and food processing. Industrial water demand is projected to grow significantly, reaching 8.8% of total water use by 2050. 

5. Sustainable ways to lighten demand that feeds the water-energy nexus  

5.1 Renewable Energy Integration: Integrating renewable energy sources, such as solar and wind, into the energy mix can reduce water dependency. Solar photovoltaic systems, for example, require minimal water for operation, in contrast to coal-fired power plants. As on 31.10.2024, the total installed capacity of renewable power was 203.21 GW. Policies promoting renewable energy could reduce the strain on water resources, especially in drought-prone regions. For example, the  PM Surya Ghar Scheme is a government initiative that aims to give Indian households free electricity. Under this program, households will receive financial assistance for installing solar panels on their roofs. With this subsidy, up to 40% of the solar panel's cost will be covered. For residential households, the subsidy is ₹ 30,000 per kW up to a capacity of 2 kW, and ₹ 18,000 per kW for additional capacity up to 3 kW. The PM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) KUSUM Scheme is  aimed to provide energy security for farmers in India. 

5.2 Improved Irrigation Techniques: Transitioning to water-efficient irrigation techniques like drip irrigation and sprinklers can significantly reduce water consumption in agriculture. These methods reduce energy use by minimizing the need for extensive groundwater pumping. For example, the Pradhan Mantri Krishi Sinchayee Yojana aimed to achieve convergence of investment in irrigation at the field level, expanding cultivable area under assured irrigation, efficient use of available water resources, adoption of efficient water irrigation techniques, increase in recharge of aquifers and exploring the feasibility of water reuse. 

Drip Irrigation system | Source

Sprinkler Irrigation system / Source 

5.3 Recycling and Reuse of Water: 5.3 Recycling and Reuse of Water: Industries, particularly thermal power plants, can benefit from wastewater recycling and reuse. By establishing closed-loop systems, plants can reduce freshwater dependency, lower energy needs, and reduce their environmental footprint.

5.4 Enhancing Infrastructure and Technology: Investing in modern infrastructure, such as smart grids for electricity and efficient water distribution systems, is essential. For example, with the addition of 82,790 MW of interregional capacity, 7,30,794 MVA of transformation capacity, and 1,95,181 circuit kilometers (ckm) of transmission lines, the entire nation is now connected to a single grid operating on a single frequency, allowing for the transfer of 1,18,740 MW between locations. One of the biggest unified grids in the world is now that of India. This mechanism has minimised energy loss in power-surplus but infrastructure poor states. Distribution companies can now purchase power from any generator in the nation at the best prices, allowing customers to pay less for electricity.  Technology, like IoT sensors, can be used to detect leaks and manage energy and water resources efficiently. 

5.5 Integrated Policy Framework: The development of integrated water-energy policies is essential for coordinated management. Policies should aim to optimize resource use across sectors, align regulatory goals, and establish clear accountability across state and national bodies. For example, the National Water Policy 2012, deals with problems like water scarcity, unequal distribution, and the absence of a common viewpoint in the management, planning, and use of water resources. We have several policies and Acts to look at energy security. We now need policies that will look at both water and energy planning as one integrated entity. Food security, sustainable livelihoods, and equitable development for all, are more likely to be achieved when both water and energy resources are viewed as one  common, community resource.  

Conclusion:

     In conclusion, the water-energy nexus highlights the crucial interdependence between two of our most vital resources. Efficient and sustainable management of this relationship is essential to address the challenges posed by climate change, population growth, and increasing resource demands. By adopting innovative solutions and integrated resource management strategies, we can reduce environmental impact, support economic growth, and ensure a resilient and sustainable future. Understanding and addressing the water-energy nexus is not just an environmental imperative but also a pathway to long-term prosperity and well-being for communities worldwide.