Cost of Water Use: A Driver of Future Investments into Water-efficient Thermal Power Plants?

Abstract

Based on a global and comprehensive empirical study, this paper analyses the regional impact of water use economics on the decision to invest in new thermal power projects. Investments today are primarily determined by water availability and regulations, and less by the financial implications of water use. The paper aims to help design effective policies and decision-making tools to support long-term investments in water use improvement solutions. It concludes by arguing that there is a need for a new investment decision model which captures the total value of water solutions, rather than focusing only on direct cost variations between different technological options.