Water-Energy Synergies: Coordinating Efficiency Programs in California

All forms of energy – from hydropower to solar panels – use water to extract and process the fuels, construct the processing facilities, or generate the electricity. Likewise, water supply, treatment, use, and disposal use considerable amounts of energy. Coordinating water-energy efficiency efforts provides a significant opportunity to achieve greater savings for both water and energy utilities and for their customers, according to a new study from the Pacific Institute: Water-Energy Synergies: Coordinating Efficiency Programs in California.

Recent events have made the connections between water and energy very visible. The Rim Fire has burned large sections of the Tuolumne River watershed and along several miles of the Hetch Hetchy Reservoir, affecting the water and energy supply of San Francisco and other Bay Area communities. Similarly in Southern California, the recent closure of the San Onofre Nuclear Generating Station has raised concerns about meeting regional energy needs, particularly during the hot summer months, when electricity and water demand are especially high.

But while these events demonstrate some of the challenges associated with the water-energy connection, they also highlight some of the opportunities: namely that saving water saves energy – and using less energy in turn saves even more water – reducing our vulnerability to both water and energy constraints. To better understand the barriers to coordinating water and energy efficiency programs, the Pacific Institute interviewed and surveyed California water and energy managers. The managers reported the most significant barriers were associated with funding, limited staff time, uncertainty about how to allocate costs and benefits among project partners, and water-related pricing policies, as well as an absence of established relationships between potential water and energy partners.

“We examine the barriers to coordinated water and energy efficiency programs and discuss, through case studies, ways that several California utilities have been able to overcome these barriers,” said Heather Cooley, co-director of the Pacific Institute Water Program. “Coordinating programs can be an important tool to meet efficiency goals, allowing the state to meet critical policy objectives and saving Californians’ money.”