The Energy – Water Nexus Changing the Future of Texas Texas Alliance of Energy Producers Energy, Air and Water A 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2010 Energy – Water Nexus A Global Context Future Freshwater Needs World Population Billions Millions of Megaliters Withdrawn World Electricity Demand Billions of kilowatt-hours

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 Production Gas Production Mixed Production Dry 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 Water Reverse Osmosis Today The Future Conventional Treatment Brackish Reverse Osmosis Brackish Nano- filtration Power Requirements For Treating Waste Water Reuse Desalination Year Projected Water Use of Non-Traditional Water (BGD)

The U.S. Energy Future The Energy – Water – Carbon “Trifecta” COAL NATURAL GAS NUCLEAR SOLAR THERMAL GEOTHERMAL HYDROELECTRIC PHOTOVOLTAIC WIND Open Loop Cooling Closed Loop Cooling Carbon (Kilograms per Kilowatt-Hour) Water Consumed (Liters per Kilowatt-Hour) Source: Lux Research, June 2009 Global Energy: Unshackling Carbon from Water US Electricity Generation By Source US Electricity Generation By Source Renewables 9 % Closed Loop Cooling

Water Challenges are Complex and Highly Interdependent Competing Sectors Regulatory/P olicy Framework Energy Infrastructure Climate (Drought) Technology Innovation Water Supply Secure Secure Reliable Reliable Demand Demand Economic Prosperity Growth Growth Productivity Productivity Development Development Cost Cost Environmental Stewardship Endangered Species Land Use Water Life Cycle All Three Imperatives Must Be Addressed!!

Freshwater Withdrawal by Sector* (~ 345 BGD in US) Livestock 2% Thermoelectric Power 39% Irrigation 39% 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 Livestock 3.3% Thermoelectric 3.3% Commercial 1.2% Domestic 7.1% Industrial 3.3% Mining 1.2% Irrigation 80.6% Source: USGS, 1998 Non-Ag Sector Consumption Freshwater Consumption Non-Ag 16.1%

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 Energy Sources CPS Energy Sources SAWS Sources SAWS Sources AND …… Texas Electricity and Water Demand Projected to Increase! Water Demand Electricity Demand

Courtesy CPS Energy - SAWs Energy Water Nexus, April 2011 Strategic Move Toward Recycled Water Water Use by CPS Energy to 2010 Total groundwater used Total surface water used Years Acre Feet 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 Water Reduction Impact

The Nexus in Texas It Ain’t A Line Dance! SOURCES Leonard Dougal – Jackson Walker New York Times – Citing UT Bureau Economic Geology IHS Database National Drought Mitigation Center NOAA USDA TCEQ – Office of Water Location of “Fracing” Sites – 2005 to 2009 Percentage 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 overall water 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, H 2, 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 Energy Water Energy Water

Eagle Ford Shale – Keeping The Lights On …. Picture courtesy of Dr. Tom Tunstall – Institute for Economic Development - UTSA AND ….. Hopefully the Water Running!!

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