Overheating: Financial Risks from water constraints on Power Generation in Asia

HSBC Climate Change and World Resources Institute, 2010.

Water-related risks are receiving more attention than in the past, yet the connection to power sector development is not well understood by investors, governments, and companies in South and Southeast Asia. This report presents a framework for investors and analysts to assess the risk of impacts from water-related issues, including growing water scarcity and declining water quality, on thermal and hydroelectric power generation plants.

This report finds that emerging Asia is projected to have the fastest growth rate of power consumption in the world yet the availability and quality of freshwater is rapidly declining in many parts of South and Southeast Asia due to demographic pressures and climate change. Furthermore over half of existing and planned capacity for major power companies is located in areas that are considered to be water scarce or stressed.

Read the full report here