Water scarcity is no longer just an environmental concern; it’s a significant driver of the climate crisis and a substantial threat to economic stability. Experts are now urging immediate and decisive action to address this escalating global challenge.
A recent report from Danfoss highlights a concerning trend: the water sector’s energy consumption is projected to double by 2040. Simultaneously, the energy sector’s demand for water could surge by nearly 60 per cent. This alarming interdependency paints a stark picture of future resource strain.
The global demand for water is predicted to outstrip supply by a staggering 40 per cent within the next five years. This exacerbates the plight of the 3.6 billion people who already struggle with inadequate access to water throughout the year.
The Intricate Link Between Energy and Water
The connection between energy and water is fundamental and cyclical. Every step in the water management process, from sourcing and purification to distribution and ultimate use, requires a significant energy input.
As the world’s population continues to grow, so does the demand for freshwater. This increased demand translates directly into a greater need for energy to pump, treat, and deliver water to homes, farms, and industries. It’s a vicious cycle: more people, more water needed, more energy consumed. Currently, the energy sector itself is a major consumer of freshwater, accounting for approximately 14 per cent of global freshwater withdrawals. This refers to the water extracted from natural sources like rivers and lakes for various purposes, including drinking, agriculture, manufacturing, and electricity generation. While some of this water is treated and returned to the environment, a substantial portion is consumed and becomes embedded in food and manufactured goods.
This inherent interdependence means that any pressure on one system will inevitably have a direct and often detrimental impact on the other. For instance, disruptions in energy supply can cripple water treatment and distribution operations, leading to severe water shortages. Conversely, extreme weather events like droughts and heatwaves pose a significant risk to power generation, which often relies on water for cooling.
Given this critical nexus, experts are increasingly vocal in their calls for a unified approach. The notion that Europe, or indeed any region, can continue to tackle these systems in isolation is becoming untenable.
“The way we utilise energy within our water systems carries significant risks to our resilience and competitiveness,” states Kim Fausing, CEO of Danfoss. He elaborates, “In Europe, a substantial amount of treated water, along with the energy expended in pumping and treating it, is lost through leaks and inefficiencies. This represents a considerable economic and security challenge.”
Europe’s Water Crisis: The Mounting Costs
The economic ramifications of neglecting inefficiencies in water and energy management are profound. Projections suggest that by 2050, failure to act could lead to a significant reduction in GDP, potentially as much as eight per cent in high-income countries and a worrying 10-15 per cent in lower-income nations.
The financial burden of water-related challenges has already manifested, with global issues contributing approximately $9.6 billion (around €8.26 billion) in additional expenses to the power sector alone.
Within Europe, the situation is equally concerning. A significant number of EU member states are facing the prospect of increased expenditure. By 2030, they will likely need to allocate an additional €500 to €1,000 per person for water supply and sanitation services simply to meet existing regulatory requirements.
Beyond the direct financial implications, the escalating water crisis poses a substantial threat to public health, the stability of critical infrastructure, and even geopolitical security. Restricted access to affordable water or reliable energy can exacerbate hardship and, in the most severe cases, ignite conflict, particularly in regions that depend heavily on imported energy or share vital water resources.
Fortunately, a range of technological solutions already exists that can bolster both water and energy efficiency across all stages of the water cycle.
Embracing Technological Solutions for Efficiency
The path forward involves a multi-pronged approach, combining regulatory impetus with technological adoption.
“We require ambitious regulations, clear water efficiency targets, and incentive structures that encourage investment in proven technologies,” Fausing emphasises. “This includes solutions like advanced leak detection systems, smart metering, effective pressure management, and optimisation of energy efficiency in water infrastructure.”
He further suggests that governments should consider integrating water efficiency considerations into energy audits and establish national targets for industrial water reuse. “Every drop of water saved translates directly into less energy wasted,” he concludes.
Danfoss points to the significant potential of retrofitting existing desalination plants. They estimate that if all global desalination facilities were upgraded to operate at their current technological potential, it could result in savings of €34.5 billion and a reduction in CO2 emissions by 111 million tonnes.
Wastewater treatment plants also offer substantial opportunities for energy reduction and cost savings through the implementation of variable speed drives (VSDs). These drives enable motors and pumps to adjust their speed according to real-time demand, rather than operating at a constant, often inefficient, full speed. A successful trial at a plant in Chennai, India, demonstrated an energy saving of approximately 22 per cent through this initiative.
The Role of Data Centres in Water Consumption
In recent years, data centres have emerged as a significant contributor to global water usage. Currently, they consume an estimated 560 billion litres of water annually.
Projections from the International Energy Agency indicate a concerning doubling of this figure by 2030, reaching a staggering 1,200 billion litres. This volume is equivalent to six times the total freshwater abstraction for the entire EU in 2022.
The primary driver behind this immense water consumption is the need to cool the processing units, which generate substantial amounts of heat.
However, innovative cooling solutions are being developed. Liquid cooling for data centres, which often utilises a closed water loop system, can significantly reduce water consumption. Furthermore, direct-to-chip liquid cooling systems have been shown to be at least 15 per cent more energy efficient than their air-cooling counterparts.
The report also highlights the potential for reusing the excess heat generated by these powerful processing units. “The increasing excess heat generated by the powerful processing units in modern data centres not only requires operators to adopt innovative cooling methods, but it can also be reused to meet heat demand elsewhere,” the report states.
According to the International Energy Agency (IEA), the waste heat emanating from data centres could potentially meet 10 per cent of Europe’s space heating demand by 2030.
“While the largest data centres will be placed too far away from urban areas to meaningfully use the waste heat, excess heat from data centres can meet 300 TWh of head demand for off-takers within a few kilometres distance,” the report adds, underscoring the localised benefits of this innovative approach.
