Managing Scarce Water Resources in China’s Coal Power Industry

Coal power generation capacity is expanding rapidly in the arid northwest regions in China. Its impact on water resources is attracting growing concerns from policy-makers, researchers, as well as mass media. This paper briefly describes the situation of electricity-water conflict in China and provides a comprehensive review on a variety of water resources management policies in China’s coal power industry. These policies range from mandatory regulations to incentive-based instruments, covering water withdrawal standards, technological requirements on water saving, unconventional water resources utilization (such as reclaimed municipal wastewater, seawater, and mine water), water resources fee, and water permit transfer. Implementing these policies jointly is of crucial importance for alleviating the water stress from the expanding coal power industry in China.