Laura Cozzi Deputy Head Global Energy Economics Food

Laura Cozzi Deputy Head, Global Energy Economics Food, energy, water nexus, 21 May 2015, Milan Expo © OECD/IEA 2014

Energy sector water needs are large, second to agriculture Water use by the energy sector today Global water use Water for energy 100% Energy 15% Other Biofuels Fossil fuels 80% Nuclear 60% Power 40% Other sectors Coal 20% 2010 Source: IEA World Energy Outlook 2012 New Policies Scenario © OECD/IEA 2014

Water consumption in the energy sector is set to double Projecting water use by the energy sector 800 700 600 500 400 300 Fuel production Power generation 120 100 80 60 20 100 2010 2020 2035 Source: IEA World Energy Outlook 2012 New Policies Scenario © OECD/IEA 2014 140 40 200 0 Consumption Billion cubic metres Withdrawal 0 2010 2020 2035

Climate change requires adaptation in the energy sector o C Increase in heavy rain Change in tropical cyclones and storms o C Increase of droughts and/or heatwaves Around 70% of planned power capacity is locations considered either water stressed or water scarce. Power plant cooling impacted Largest cities exposed to droughts India © Natural hazards adapted from Munich RE (2011) In India, severe water scarcity will amplify competition for water and determine thermal plants competitiveness and location – while cooling demand grows © OECD/IEA 2014

Climate change requires adaptation in the energy sector o C Increase in heavy rain Change in tropical cyclones and storms o C Increase of droughts and/or heatwaves Power plant cooling impacted China In China, water constraints could make the expected increase in thermal power output unachievable, in particular, as 60% of thermal power capacity is in northern China, which as only 20% of freshwater supply. © Natural hazards adapted from Munich RE (2011) Storms, heavy rainfall and increased temperature will impact the power system infrastructure and energy demand © OECD/IEA 2014