Global frontrunners in the electric power industry have disclosed their water management strategies as a vital component of their commitment to environmental sustainability. Water plays a crucial role in power generation, serving various functions, including steam generation, cooling, fuel transportation and emission control. Hydroelectric facilities and green hydrogen plants also use water as fuel. However, the escalating impact of climate change, including fluctuating precipitation patterns and natural disasters, poses significant risks to water availability, needing proactive measures to secure this valuable yet finite resource.

Water pollution management

In the US, the Clean Water Act (CWA) serves as the main federal law regulating water pollution. The US Environmental Protection Agency (EPA) supplements the CWA through issuance of Effluent Limitations Guidelines specific for steam electric power generating facilities, setting allowed limits for discharge of wastewater used for flue gas desulfurization (FGD), fly ash and bottom ash transport and flue gas mercury control, among others. Electricity service providers emphasise their continuous adherence to the CWA and the EPA’s guidelines.

Reducing water intensity

Electricity firms are actively working to reduce their water intensity – the amount of water needed to generate one kilowatt-hour of electricity. In their latest CDP response, Duke Energy claims that its target is to reduce water withdrawals for its generation fleet by one trillion gallons by 2030. Meanwhile, companies like NextEra and American Electric Power have set long-term goals to curb water consumption by replacing aging and water-intensive fossil fuel plants with renewable facilities like wind and solar, which need minimal water.

Water sustainable sourcing

Utilities are aware of the impact their generating units have on water-stressed areas. Iberdrola disclosed that in 2022, 48% of its thermal plants are in such locations but claimed that most of its water consumption originates from saltwater, thus not contributing to water stress. Meanwhile NRG highlights their procurement of non-potable options, such as brackish and grey water from sewage treatment plants, as alternatives to freshwater withdrawal.

Reservior management

Dams and reservoirs serve a crucial function, not only in powering hydropower facilities but also in providing water for irrigation, drinking, and recreational activities. Utilities rigorously monitor water levels and prepare drought response plans for emergency conditions, according to firm-level reports. In France, EDF created a 24/7 operational unit that monitors meteorological phenomena and forecasts their impact on water catchment sources (groundwater, rivers, sea) and subsequently, on EDF’s operations.