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Economic Impacts

The politics of desalination are a bit complicated. Greatly tied to the environmental impacts discussed, many policy issues deal with the impact of the physical plants. There is often a disconnect between policy makers (who are generally further removed from the actual site) and the local residents of the area (who will be physically impacted by the plant). Furthermore, the plant’s economic potential may not give back equally to the nearby residents as it does to those further removed. This creates friction, because others who benefit from the plant do not have to make the physical sacrifice that the nearby residents (and local ecosystems) have to. Support for or against construction of desalination sites is dependent on different interest groups as well. Often, support for desalination is backed by wealthy investors who value the economic potential over the environmental damage (Zetland 2016).

 

The cost of desalination is mostly dominated by the cost of the energy needed for the process. This means that the variability of desalination costs is contingent on the local cost and availability of energy. Large scale reverse osmosis desalination (which makes up 60% of the global desalination capacity) costs around $1-2 for every cubic meter of water (Shouman et al. 2015).

 

Besides the cost of water, the construction and maintenance costs of these plants are also relevant. The Santa Barbara desalination plant, which was mothballed back in the 90s, will cost $55 million to redesign and reactivate. Annual operating costs are projected to be $4.1 million (City of Santa Barbara Desalination FAQs 2016).

 

The San Diego desalination plant cost $1 billion to construct. The plant is privately owned by Poseidon Water. However, the Water Purchase Agreement between Poseidon and the San Diego County Water Authority, a public agency that delivers water to the San Diego county, allows the Water Authority to purchase the desalinated water from Poseidon at a flat rate. It is projected that the purchased desalinated water, which will account for about 8% of San Diego’s water needs, will increase the average homeowner’s water bill by $5. San Diego imports its water from the Colorado River and the Bay-Delta, both of which are at risk of drought. While desalinated water is still more expensive than the already pricey imported water, desalination gives the San Diego county a bit more independence (Seawater Desalination).

 

 

 

 

 

 

City of Santa Barbara Desalination FAQs. 2016. http://www.santabarbaraca.gov/civicax/filebank/blobdload.aspx?BlobID=49060.

 

Seawater Desalination. San Diego County Water Authority. http://www.sdcwa.org/seawater-desalination.

 

Shouman ER, Sorour MH, Abulnour AG. 2015. Economics of Renewable Energy for Water Desalination in Developing Countries. Int J Econ Manag Sci 5:305. doi:10.4172/21626359.1000305.

 

Zetland, David. 2016. Society, Politics and Desalination. http://www.kysq.org/pubs/Desal_C6_Zetland.pdf.

 

 

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