The Energy-Water Nexus—How Policymaking is Shaping Generation and Usage Profiles in the Regional Southwest

Abstract

The “energy-water nexus” exemplifies a commonly-referenced and recurring theme in contemporary environmental policy discussions. At its core, this term refers to the significant complexity and interdependency that exists between the energy and water sectors: i.e., that energy is needed to pump, treat, and transport water and wastewater; and water is needed to extract, generate, and transport energy, as well as to operate and cool thermoelectric power plants for electricity production. Despite such recognized interdependency between the energy and water sectors, there has been a historical lack of effective policy frameworks put in place to support the sustainable use and development of energy and water resources in conjunction with one another. This is attributable to a fragmented oversight system wherein policies on water and energy resources are routinely established in isolation, based on their independent sectors. Given the significant degree of interconnection between the energy and water industries, policymakers should alternatively focus on taking a more comprehensive and interdisciplinary approach to the effective management of these two resources. This would require regulators and policymakers to consider the impacts of water policies and regulations on energy supply and demand, as well as the impacts of energy policies and regulations on water demand and availability. Adequately addressing western drought issues depends on the more efficient use of water and energy – making this nexus even more compelling. Although the “energy-water nexus” is conceptually broad by nature, this article focuses on recent energy generation and water usage trends in the regional Southwest and how the future of the energy-water nexus is being shaped by a heightened interdisciplinary policy development approach. To understand baseline energy and water consumption, a summary of national and regional water use trends is provided. Three Southwestern states have been chosen to illustrate examples of the connection between energy use and water consumption. This article will address the following: (I) overview of the energy-water nexus at the national level; (II) outline of current energy generation and water usage trends for the regional Southwest; and (III) identification of prospective impacts of recently-established regulations and policies on the future of the energy-water nexus in the Southwest.