The Cost of Water vs. the Cost of Energy

The cost of water vs. the cost of energyWriting in Texas CEO Magazine, Isaac Barchas, Mitch Jacobson, and Michael E. Webber offer their advice on where to bet and where to hedge in a world of changing price dynamics for water and energy in Texas.

Historically, planners have assumed that the price of energy is volatile and trending up, while the price of water is stable and low. However, current trends in technology, demography, and Texas’ natural environment may mean that energy is actually getting more plentiful and less costly, while water may be becoming scarcer and more expensive. These changes would have implications for the trade-offs companies should make in energy vs. water use, in energy- vs. labor-intensive processes, and in the mix of energy sources including fuels, grid energy, cogeneration, and on-site generation.

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