Why Water is still not that Hot?

Usually one big crisis draws attention of the world towards a growing problem and that then kickstarts a whole new set of opportunities. Can this California drought event create a bagful of opportunities in water?

Below are my reasons as to why water is still not that hot as energy is:

1. Water is a big problem but which can be tackled easily by smart use of it. The biggest benefit of water is that we can recycle it which unfortunately is not possible in energy space. Expect recycling to reach the European/Isreal levels (upto ten times) in USA and India too. Also the other benefit is that water is actually abundantly present which can be made “available” by desalination technologies or rain water harvesting (only 3% of total water is freshwater) which is unfortunately not the case with energy.

2. It is hard to force consumers to pay more for water since historically water has been seen a very abundant and free commodity unlike energy which needs to be generated at a cost. Water is a low margin business because of inability to pass increased cost to them. The only point which makes water more important than energy is that it is one of the basic needs for human survival.

3. Basic need for water is for drinking and cooking use. The other uses of water people adjust themselves depending on water availability (use less water for bathing, shaving etc as happens in villages). Usually people do not show that flexibility in energy and find it more painful to adjust to lower levels.

4. Energy direct touchpoints are more in our life than water. We get in direct touch with water when we eat or drink which are few in a day. With energy we are in touch at all the times (Air conditioning, TV, Internet, Travel, Mobile phones) and we immediately get uncomfortable when it is switched off. For individuals, therefore energy seems like a bigger problem than water and therefore the hype associated with energy can be easily created.

5. Not a lot of technological innovations that can happen in water industry unlike in energy. At least thats the perception.

6. Typically, water retail consumers spend less than 0.1-0.2% of their income on water and more than 1% on energy (electricity+fuel) making energy a much bigger industry (atleast ten times more, $5 trillion Vs $500 billion).

Any thoughts?

Manoj

CleanTech Networking Event : 3-6PM, 5th July, 2008

As you may know CleanTech is the buzzword of this decade and is rightly so. With 380 ppm of carbon
dioxide in our atmosphere and $125/barrel of crude oil glaring in our face, CleanTech is the need of the
hour. Whether we are polluters or not, we all will be impacted by the climate change. As part of our
initiative to increase awareness in the society, Nexus India Capital along with Al Gore's Climate
Project Group, Vinod Khosla chaired CleanTech India group and TIE Mumbai have teamed up
to provide a platform for networking and discussion on "CleanTech in India". 

We invite you to attend this event and contribute in building awareness on CleanTech in India.

Date: July 5th, Saturday, 3-6PM

Venue:    The Climate Project India,

               2nd Floor, Victoria House,

               Pandurang Budhkar Marg,

               Lower Parel, Mumbai - 400 013

               Landmark: Bombay Dyeing Showroom

Brief agenda:

1. "The Inconvenient Truth" - Anjuli Pandit & Gaurav Gupta, Climate Project India

2. "CleanTech Landscape in India - A VC perspective" - Manoj Gupta, Nexus India Capital

3. "CleanTech - Global Perspectives" – Jaswinder Kaur, CleanTech India

4. "Carbon Trading landscape in India", Dr Milind Antani, Nishith Desai Associates

5. Q&A, discussions and networking

6. Snacks, Tea and Coffee

RSVP:      manoj@nexusindiacap.com

               anjuli@climateprojectindia.org

Please RSVP as soon as possible as seats are limited.