By: Micalah Spenrath, PMP
Deputy Director, Policy & Energy
Our energy system is in a committed relationship with our water system. We use energy to treat, process and move water, and we use water to extract energy resources, like natural gas, and to generate electricity. Simply put—our energy and water systems are intertwined, and so are their risks. Are we adequately accounting for these dependencies when planning for the future or designing water and energy policy?
We posed that very question to lawmakers on both sides of the aisle.
Recognizing the critical interplay between energy and water systems, HARC partnered with Powerhouse Texas to bring this issue to the forefront of policy discussions. Together, we engaged lawmakers to explore the energy-water nexus, discuss emerging trends, and present recommendations to inform better policy.
When it comes to water, not all energy resources are created equal.
According to the U.S Energy Information Administration, running a one-megawatt (MW) natural gas plant for just one hour requires withdrawing an average of 2,803 gallons of water—about 400 gallons more than what an average person would use in a month. That’s right—natural gas plants need water for their operations, just like coal plants and other thermal generators. Solar and wind energy also require water, but their consumption, or water that is used and not returned to the source, is considerably lower, making them valuable assets for water-stressed states.
What’s more, a HARC geospatial analysis of the Electric Reliability Council of Texas (ERCOT) interconnection queue revealed that roughly 86% of natural gas resources are planned in counties affected by drought. And as the Texas Energy Fund moves to deploy about 10,000 MW of dispatchable generation in ERCOT, it is imperative that we consider the water cost of our energy system.
In our discussions with lawmakers, we elevated several trends that amplify the urgency of addressing the nexus.
Trend One: Texas is growing. Population increase drives energy and water demand and our population growth rate was 1.8% in 2024, the third highest in the nation.
Trend Two: Texas is getting hotter. Higher temperatures exacerbate water scarcity and strain the electric grid. From 1976-2023 the number of hot days that San Antonio, Austin, and Houston experienced increased significantly—1,276%, 361% and 567% respectively.
Trend Three: Texas’ energy system is expanding to meet our insatiable appetite for energy. With approximately 379.5 GW of energy resources seeking interconnection in ERCOT, water use is set to rise.
Trend Four: Business is booming. Thirsty industries are moving to Texas. Though artificial intelligence, hydrogen, geothermal and carbon capture and storage (CCS) may be a boon for the economy and, in some cases, emissions reductions, this growth will come with water and energy cost.
These trends and statistics underscore the pressing need to consider water impacts when planning for the future of energy and the importance of integrated planning for a state that has been contending with water scarcity for years. While lawmakers will have to weigh tradeoffs, proactive measures will be decisive in creating a future in which both emissions and water use are at sustainable levels.
So, what solutions are on the table?
Our recommendations prioritize sustainability and resilience while addressing Texas’ water and energy needs.
Recommendation One: Reduce Demand. Leaning into energy and water efficiency could save Texans’ energy, water, and money—the less we use, the less we pay for. Lawmakers should bolster energy savings goals, expand energy efficiency and demand response programs, and identify pathways to financially incentivize energy and water savings across sectors.
Recommendation Two: One Water. One Water should be standard practice. One Water is an integrated water management approach that treats all water (i.e drinking water, wastewater, greywater, etc.) as a single resource. The One Water methodology endeavors to ensure reliable water supplies, improve water quality, and enhance resilience to water challenges.
Recommendation Three: Increase Funding. Lawmakers should continue to invest in resilient water and energy infrastructure, and programs that improve water quality and energy efficiency.
Recommendation Four: Support Competitive Energy Policy. Lawmakers should continue to support competitive energy policy that welcomes energy resources with low water needs. In a drier, hotter future, having the ability and resources available to minimize water use in our energy system would ensure that Texas meets both energy and water needs reliably and sustainably.
Recommendation Five: Remember the Environment. The environment is also a stakeholder in water decisions. Lawmakers should ensure that policies provide for sustainable environmental flows to support ecosystems and wildlife.
To bring this all together, the interconnectedness of energy and water systems is a critical consideration for policymakers as Texas faces increasing pressures from population growth, energy demand, and water scarcity. By prioritizing technologies and strategies that minimize water use, investing in resilient infrastructure, and integrating holistic approaches like One Water, Texas lawmakers can create policies that save money, protect natural resources, support resilience and set the foundation for a sustainable future.
If you’re interested in learning more about the energy-water nexus, contact us.
