U.S. Department of Energy The Water-Energy Nexus: Challenges and Opportunities JUNE 2014 THIS PAGE INTENTIONALLY BLANK Table of Contents Foreword ................................................................................................................................................................... i Acknowledgements ............................................................................................................................................. iii Executive Summary.............................................................................................................................................. v Chapter 1. Introduction ...................................................................................................................................... 1 1.1 Background ................................................................................................................................................. 1 1.2 DOE’s Motivation and Role .................................................................................................................... 3 1.3 The DOE Approach ................................................................................................................................... 4 1.4 Opportunities ............................................................................................................................................. 4 References ........................................................................................................................................................... 6 Chapter 2. Interconnected Water and Energy Systems ......................................................................... 7 2.1 Characteristics and Properties of Water .......................................................................................... 7 2.2 Interconnected Energy and Water Flows ........................................................................................ 9 2.3 Regional and Temporal Variability in Water Accessibility .................................................... 19 2.4 Linkages between the Fuels Life Cycle and Water Quality .................................................... 22 2.5 Challenges and Opportunities ........................................................................................................... 25 References ........................................................................................................................................................ 26 Chapter 3. Implications of Climate Change and Other Trends ......................................................... 29 3.1 Changes in Temperature and Precipitation ................................................................................. 29 3.2 Water Variability .................................................................................................................................... 33 3.3 The Future of Electricity Generation .............................................................................................. 34 3.4 The Future of Hydropower ................................................................................................................ 42 3.5 The Future of Oil and Gas Exploration and Production .......................................................... 45 3.6 The Future of Biofuels .......................................................................................................................... 46 3.7 Challenges and Opportunities ........................................................................................................... 47 References ........................................................................................................................................................ 49 Chapter 4: Decision-Making Landscape .................................................................................................... 51 4.1 Framework for Energy Decision Making ...................................................................................... 51 4.2 Framework for Water Decision Making ........................................................................................ 54 4.3 Sector-Specific Water-Energy Landscape for Decision Making ........................................... 61 4.4 Role of States in Water-Energy Nexus ........................................................................................... 74 4.5 State and Federal Water and Wastewater Facilities ................................................................ 75 4.6 International Comparison of Case Studies ................................................................................... 77 4.7 Challenges and Opportunities ........................................................................................................... 86 References ........................................................................................................................................................ 88 Chapter 5. Technology Research, Development, Demonstration, and Deployment Challenges and Opportunities ....................................................................................................................... 96 5.1 Water for Energy .................................................................................................................................... 97 5.2 Energy For (and From) Water ........................................................................................................ 109 5.3 Sensing, Data Collection, and Information Management ...................................................... 120 5.4 Energy/Water Systems Integration .............................................................................................. 127 5.5 Technology Deployment, Risk Reduction, and Scale-Up ...................................................... 130 5.7 Summary and Conclusion ................................................................................................................. 133 References ...................................................................................................................................................... 134 Chapter 6. Data, Modeling, and Analysis ................................................................................................. 148 6.1 Introduction ........................................................................................................................................... 149 6.2 User/Societal Needs: Modeling, Analysis, and Actionable Science ................................... 150 6.3 Current Capabilities ............................................................................................................................ 155 6.4 Priorities for Modeling and Analysis ............................................................................................ 179 6.5 Summary ................................................................................................................................................. 196 References ...................................................................................................................................................... 199 Chapter 7. Future Opportunities ................................................................................................................ 205 7.1 Technology RDD&D............................................................................................................................. 205 7.2 Analysis and Modeling ....................................................................................................................... 207 7.3 Data ........................................................................................................................................................... 208 7.4 Policy Framework ................................................................................................................................ 209 7.5 Stakeholder Engagement .................................................................................................................. 209 7.6 International Diplomacy ................................................................................................................... 210 7.7 Conclusion .............................................................................................................................................. 210 Appendix A. Sankey Diagram Details and Assumptions ................................................................... 211 Appendix B. U.S. Department of Energy Research Funding Opportunity Announcements Relevant to the Water-Energy Nexus ....................................................................................................... 232 Foreword Water resource scarcity, variability, and uncertainty are becoming more prominent both domestically and internationally. Because energy and water are interdependent, the availability and predictability of water resources can directly affect energy systems. We cannot assume the future is like the past in terms of climate, technology, and the evolving decision landscape. These issues present important challenges to address. While many federal agencies are engaged in the water-energy nexus, the U.S. Department of Energy (DOE) can play an important role by bringing more science, technology, and analytical capability to the water-energy nexus, drawing on expertise in research and development (R&D) programs, and engaging the strengths of the national