Key Issues in Seawater Desalination in California: Costs and Financing
Economics – including both the cost of the water produced and the complex financial arrangements needed to develop a project – are key factors that will determine the ultimate success and extent of desalination in California. New research from the Pacific Institute, Key Issues for Seawater Desalination in California: Cost and Financing, assesses desalination costs, financing, and risks associated with desalination projects. The Pacific Institute analysis finds that the cost to produce water from a desalination plant is high but subject to significant variability, with recent estimates for plants proposed in the state ranging from $1,900 to more than $3,000 per acre-foot.“Seawater desalination remains among the most expensive water-supply options available, although the public and decision-makers must exercise caution when comparing costs among different projects,” said Heather Cooley, co-director of the Pacific Institute Water Program and lead author of the report. “In some cases, costs are reported in ways that are not directly comparable. For example, some report the cost of the desalination plant alone, while others include the cost for additional infrastructure needed to integrate the desalination plant into the rest of the water system. Some estimates include costs to finance the project, while others don’t. Even when there is an apples-to-apples comparison, there are a number of site- and project-specific factors that make cost comparisons difficult, such as energy, land, and labor costs and the availability of visible and hidden subsidies.”