The Energy – Water NexusChanging the Future of Texas

Texas Alliance of Energy Producers

Energy, Air and WaterA Comprehensive Study of the Issues of Today

Les Shephard Texas Sustainable Energy Research Institute

University of Texas at San Antonio

October 10, 2013

Water Water Everywhere!

So….. What is the Problem?Water Treatment is Expensive ….. AND Energy Intensive!

Courtesy IEEE Spectrum, July 2010

Energy – Water NexusA Global Context

Future Freshwater Needs

World Population

2005 20300

1

2

3

4

5

6

7

8

9

Population liv-ing under severe water stress

Global popula-tion

Bil

lion

s

2010 2030 2030

-2000

-1000

0

1000

2000

3000

4000

5000

6000

7000

Expected shortfall

Municipal and domestic

Industry

Agriculture

Mil

lion

s of

Meg

alit

ers

Wit

hd

raw

n

2010 2015 2020 2025 20300

5000

10000

15000

20000

25000

30000

35000

World Electricity DemandB

illi

ons

of k

ilow

att-

hou

rs

Major Inland Brackish Water Resources

Produced Water From Oil and Natural Gas Production

Source: Mast, et al., 1998, (on left); USGS, (on right)

U.S. Saline “Brackish” Aquifers

Our Water Future Will Rely on Non -Traditional Water Resources

Oil ProductionGas Production

Mixed ProductionDry Wells

Our Energy Future Will Also!

Growing Demand for Non-Traditional Water Resources

• Desal increasing ~ 10% per year• Waste water reuse increasing ~ 15% per year ……. AND Growing!

Sources: EPA 2004, Water Reuse 2007, Mickley 2003; Einfeld 2007

Sea WaterReverse Osmosis

Today The Future

ConventionalTreatment

BrackishReverse Osmosis

BrackishNano-

filtration

Power Requirements For TreatingWaste Water Reuse

Desalination

1990 2000 2010 2020

Year

5

10

15

20

Pro

ject

ed

Wa

ter

Use

of

No

n-T

rad

itio

na

l Wa

ter

(BG

D)

The U.S. Energy Future The Energy – Water – Carbon “Trifecta”

COAL

NATURAL GAS

NUCLEAR SOLAR THERMAL

GEOTHERMAL

HYDROELECTRICPHOTOVOLTAIC

WIND

Open Loop

Cooling

Closed LoopCooling

1.0

0.8

0.6

0.4

0.2

0 1 2 3 4 5 6

Car

bon

(Kil

ogra

ms

per

Kil

owat

t-H

our)

Water Consumed (Liters per Kilowatt-Hour)

Source: Lux Research, June 2009Global Energy: Unshackling Carbon from Water

Coal 45%

Natural Gas 24%

Nuclear 19%

Petroleum 2% Other 1%

US Electricity Generation By Source

Renewables9 %

Closed Loop Cooling

Water Challenges are Complex and Highly Interdependent

Competing Sectors

Regulatory/Policy

Framework

Energy

Infrastructure

Climate (Drought)

Technology Innovation

Water Supply Secure Reliable Demand

Economic Prosperity Growth Productivity Development Cost

Environmental Stewardship

Endangered Species Land Use Water Life Cycle

All Three Imperatives Must Be Addressed!!

Freshwater Withdrawal by Sector* (~ 345 BGD in US)

Livestock2%

Thermoelectric Power39%

Irrigation39%

Public Supply

14%Industrial

6%

Source: USGS Circular 1268, March 2004 * *Does not include hydropower

Freshwater Consumption by Sector (~ 100 BGD)

Energy Accounts for ~ 27 Percent of Non-Agricultural Fresh Water Consumption

Livestock3.3%

Thermoelectric3.3%

Commercial1.2%

Domestic7.1%

Industrial3.3%

Mining1.2%

Irrigation80.6%

Source: USGS, 1998

Non-Ag Sector Consumption

Freshwater Consumption

Non-Ag16.1%

Texas Consumes ~ 157 Billion Gallons of Water to Produce ~ 400 Billion kWh Annually – More Than Any Other State!

The Nexus in Texas!

Source: Report on the Capacity, Demand, and Reserves in the ERCOT Region, May 2010;CPS Energy - SAWs Energy Water Nexus, April 2011; Texas Water Development Board

A Diversified Energy – Water Portfolio Is Key San Antonio Is Charting Its Future!

CPS EnergySources

SAWSSourcesAND …… Texas Electricity and Water Demand

Projected to Increase!

Water DemandElectricity

Demand

Courtesy CPS Energy - SAWs Energy Water Nexus, April 2011

Strategic Move Toward Recycled Water

Water Use by CPS Energy - 1962 to 2010

Total groundwater used

Total surface water used

Years

AcreFeet

Creating a Sustainable Energy – Water Future!

1500 MW of Renewable Energy Generation 

100 MW Non-Wind Generation 

AMI and Smart Grid Roll-out

64,000 acre-feet(21 Billion Gallons)

18,000 acre-feet(6 Billion Gallons)

Increasing Energy Efficiency Will Further Reduce Water Use

CPS Energy 2020 Vision Goal 2020 Cumulative WaterReduction

Impact

The Nexus in TexasIt Ain’t A Line Dance!

SOURCESLeonard Dougal – Jackson WalkerNew York Times – Citing UT Bureau Economic GeologyIHS Database

National Drought Mitigation CenterNOAAUSDA

TCEQ – Office of Water

Location of “Fracing” Sites – 2005 to 2009Percentage of Water Wells Related to Oil and Gas (est.)

“Shale Production” “Contributing To A Low Carbon, Energy - Water Future?”

Source: EIA, March 2010

Water Technology Innovation and Data Are Critical

• Water Treatment Innovation – low energy and low water consumption technologies – improved membranes, “waterless fracing”,

“smart technologies”, selective water use, etc

• Efficacy of Water Reuse is dependent on water quantity, water quality and flow duration. Economics will likely drive decision AND overallwater strategy

• Water Data are sparse, error-prone and inconsistent across US – make it a priority AND readily available!

Sustainable Development Is Critical

Water Supply – Economic Prosperity – Responsible Environmental Stewardship

• “Value of Water” strategy - Considers costs of reuse treatment, energy, transport, concentrate disposal VERSUS direct disposal and

trucking. Roads, emissions, safety, etc. are externalities. Recognize not all

fluids are treatable – coupled with regional water strategy

• Water Life Cycle Systems Analyses – promote sustainable development through systems analyses focused on the “Long View” for water –

fresh and brackish

Energy and Water are Inextricably Linked!

• Thermoelectric Cooling• Hydropower• Energy Minerals Extraction and

Mining

• Fuel Production (Fossil Fuels, H2, Biofuels)

• Emission Control

• Pumping• Conveyance and Transport• Treatment• Use Conditioning• Surface and Groundwater

Water Production, Processing, Distribution, and End-use

Require Energy

Energy and Power Production Require Water

Water For Energy Energy For Water

With Sufficiently Abundant, Clean and Affordable Our Problems Can Be Solved

EnergyWaterEnergy

Water

Eagle Ford Shale – Keeping The Lights On ….

Picture courtesy of Dr. Tom Tunstall – Institute for Economic Development - UTSAhttp://www.businesswire.com/news/home/20130328005282/en/UTSA-Releases-Updated-Eagle-Ford-Shale-Economic

AND ….. Hopefully the Water Running!!

The University of Texas at San Antonio

Educating Tomorrow’s America --- Today!