SSAVE THE SOUTHWEST← Evidence Library
RESEARCH 06 — ECONOMICS & ENVIRONMENT

A feasible idea has to survive the full cost.

This page brings the pieces together: capital, operations, energy, storage, financing, environmental mitigation and the question of who pays for infrastructure that may serve more than one purpose.

Research rule:Do not optimize only for the cheapest gallon. Test total system cost while preserving reliability, environmental requirements and transparent cost allocation.
FACT 01
Asset by assetnot one giant price tag
Supported

Water economics should separate water assets from revenue-producing power assets.

Desalination plants, pipelines, pumps, storage, generation, transmission and shared infrastructure have different users, revenue streams and useful lives. The model should allocate costs instead of charging every energy asset entirely to water.

What it means

Cost per acre-foot can then reflect the resources actually attributable to producing and delivering water.

What it does not prove

Cost allocation does not make capital costs disappear; financing and risk still have to be carried by someone.

FACT 02
Water storagepotential peak-cost lever
Supported

Store the product when electricity is favorable instead of assuming electricity must always be stored first.

Flexible desalination plus freshwater storage can shift part of the electric load away from peak periods. The economics model should compare the cost of added water storage with batteries and additional peak generation.

What it means

This can change required peak capacity and operating cost even though total water production remains the same.

What it does not prove

Water storage has its own capital, land, pumping and water-quality costs and cannot replace all grid flexibility.

FACT 03
Low / Base / Highmake uncertainty visible
Supported

A credible project cost should be a range, not a single headline number.

Construction cost, electricity price, financing rate, pipeline length, elevation, environmental mitigation and utilization can each materially change delivered-water cost.

What it means

Scenario analysis shows which assumptions actually drive feasibility.

What it does not prove

A wide range is not a substitute for engineering; it identifies where better evidence is most valuable.

FACT 04
Mitigation is costenvironment belongs in economics
Supported

Environmental performance must be included in project design and project cost.

Marine intake and brine systems, pipeline corridors, transmission, habitat effects and mitigation can alter both siting and economics. The least expensive plant on paper may not be the lowest-cost acceptable project.

What it means

Feasibility means finding a design that meets water, reliability, economic and environmental requirements together.

What it does not prove

Including mitigation costs does not establish that impacts are acceptable; project-specific environmental review is still required.

FACT 05
Who pays?match benefits to costs
Supported

Financing and cost allocation are part of the design problem.

New water can benefit municipal users, industry, agriculture, reservoir storage and future growth in different ways. New generation may also sell power beyond the water project. The economic model should make those benefit and payment assumptions explicit.

What it means

A transparent allocation makes it possible to test whether the project remains viable under different funding structures.

What it does not prove

Potential revenue, public funding or industrial participation should not be counted until the terms and beneficiaries are defined.

SOURCE LIBRARY

Verify the evidence yourself.

These links open the original publisher or technical source rather than a Save the Southwest summary.

Sea of Cortez Binational Desalination StudyIBWCApril 2020Open ↗
Water–electricity integrated resource managementU.S. Department of Energy2016Open ↗
Large-load cost and infrastructure workshopArizona Corporation CommissionApril 2026Open ↗