India’s power sector is facing major challenges due to the increasing water scarcity in the country. This was revealed in a report by Moody’s Rating, an agency advocating a shift towards renewable energy investment.
As per the report, sectors like coal power and steel manufacturing that rely heavily on water for processing and cooling, are especially vulnerable as the per capita water availability is likely to decrease significantly by 2031.
The agency suggests increasing investment in renewable energy and improving the water management system can combat these threats.
The report also emphasises the measures initiated by the Indian government to strengthen water infrastructure and promote renewable energy that is vital for reducing reliance on water-intensive coal power generation.
The report highlights the urgent need for India to adapt energy strategies to ascertain the stability of critical industrial sectors.