ABSTRACT
The electric power sector is the second-largest water user in China, next to only the agricultural sector. This chapter outlines current and historical policies in several aspects of China’s electric power sector that have impacts on water resources. First, China has issued a series of policies aimed at improving the water performance of coal power plants, mainly by (1) setting requirements on the maximum water withdrawal intensity; (2) restricting groundwater use; (3) promoting air-cooling technologies; (4) encouraging the utilization of unconventional sources. Second, policies aimed at improving the environmental performance of coal power plants may generate either co-benefits of or tradeoffs with water conservation. Improving energy efficiency at coal power plants reduces air pollutions while offering co-benefits of cutting water used for cooling purposes. However, desulfurization processes reduce sulfur dioxide emissions at the expense of increased water consumption. Lastly, China has been actively engaging in global climate change mitigation by shifting away from coal power production. Promoting the utilization of wind power and solar PV offers the opportunity to cut water consumption for electricity generation. Meanwhile, water sector policies are also expected to impact development of the coal power sector. China’s recently issued ‘Most Stringent Water Management Mechanism’, the so-called Three Red Lines policies, sets specific targets on total water use and industrial water efficiency improvement for 2020 and 2030, which might pose constraints on the future development of coal power plants, particularly in the water-deficient northern regions.
