Is there a water–energy nexus in electricity generation? Long-term scenarios for the western United States

Water is required for energy supply, and energy is required for water supply, creating problems as demand for both resources grows. We analyze this "water–energy nexus" as it affects long-run electricity planning in the western United States. We develop four scenarios assuming: no new constraints; limits on carbon emissions; limits on water use; and combined carbon and water limits. We evaluate these scenarios through 2100 under a range of carbon and water prices. The carbon-reducing scenarios become cost-effective at carbon prices of about $50–$70 per ton of CO2, moderately high but plausible within the century. In contrast, the water-conserving scenarios are not cost-effective until water prices reach thousands of dollars per acre-foot, well beyond foreseeable levels. This is due in part to the modest available water savings: our most and least water-intensive scenarios differ by less than 1% of the region's water consumption. Under our assumptions, Western electricity generation could be reshaped by the cost of carbon emissions, but not by the cost of water, over the course of this century. Both climate change and water scarcity are of critical importance, but only in the former is electricity generation central to the problem and its solutions. - Highlights: • We model long-run electricity supply and demand for the western United States. • We evaluate the costs of carbon-reducing and water-conserving scenarios. • Carbon-reducing scenarios become cost-effective at carbon prices of $50–70 per ton CO2. • Water-conserving scenarios are only cost-effective above $4000/acre-foot of water. • Electricity planning is central to climate policy, but much less so to water planning