Water Security

1. Importance

Water security is a fundamental aspect of responsible operations in the power sector, where electricity generation depends on reliable access to water resources and long-term coexistence with surrounding communities and ecosystems. By proactively managing water withdrawal, storage, recycling, and wastewater treatment, the Group strengthens operational resilience and mitigates risks associated with water scarcity, droughts, and climate-related extreme events. Integrating efficient water use, reuse of treated water, and compliance with regulatory requirements into operational practices helps minimize environmental impacts and reduce potential conflicts over water use. Continuous monitoring of local water conditions, together with responsible water stewardship, supports stable operations, builds stakeholder confidence, and contributes to the sustainable use of natural resources across the Group’s power generation value chain.

2. Target and Performance

The Group has established clear short-term and long-term targets to enhance water efficiency, focusing on increasing water reuse and reducing overall water consumption across operations.

Goal Performance
Reduce the use of water resources
  • Short-term (by 2027)
    Increase the proportion of water reused to be more than 2% of total water consumption, compared to the 2024 baseline.
  • Long-term (by 2032)
    The Group targets to increase the proportion of water reused to be more than 3% of total water consumption, compared to the 2024 baseline.
The Group reduced total water consumption by reusing treated water for dust control, cleaning, and irrigation, and by substituting primary water with treated water in production processes, supported by pumping systems to maximize reuse. In addition, the power plant constructed a rainwater retention pond to capture and utilize rainfall, reducing reliance on irrigation canal water. As a result, water withdrawal from the irrigation canal decreased by approximately 1% in 2025 compared to 2024.
Reducing raw water usage and water consumption
  • Short-term (by 2027)
    Reduce raw water consumption or water withdrawal by at least 1% for each sub- process within the production line.
  • Long-term (by 2032)
    Reduce raw water consumption or water withdrawal by at least 1% in total.
Employee engagement initiatives and cross-functional collaboration have improved water efficiency by reducing boiler blowdown losses and cooling tower discharge, contributing to decreased water consumption in power generation, resulting in a 0.5% reduction compared to the 2024 baseline.

3. Management Approach

The Group manages water security as part of its environmental management approach, recognizing that reliable access to water and efficient water use are essential to business continuity, stable electricity generation, and environmental protection. Water security is addressed within the Group’s environmental management framework, which emphasizes regulatory compliance, efficient use of resources, and continuous improvement of management systems to manage water‑related risks across operations.

3.1 Environment Management Policy and Environmental Management System

The Group has established an Environment Management Policy that addresses water management as part of its commitment to strict compliance with environmental laws and regulations, pollution control at the source, continuous improvement of environmental management systems, and the efficient use of resources across operations. Under this policy framework, water management is recognized as a key environmental issue, with a commitment to manage water use responsibly, control wastewater, and promote water reuse in accordance with regulatory requirements. The policy emphasizes the importance of efficient water usage, reduction of unnecessary water consumption, and improvement of water use efficiency across power plant operations. It also promotes environmental awareness and responsibility among executives and employees, supporting consistent application of water management principles and reinforcing the Group’s commitment to reducing water use and improving efficiency throughout its operations.

3.2 Water Risk Assessment

The Group identifies water‑stressed and drought‑risk areas at the power plant level by assessing historical drought occurrence and recurrence in surrounding communities using data on villages affected by repeated drought events during 2013–2017. This assessment considers location‑specific information at the provincial, district, and sub‑district levels, together with drought risk classification ranging from no risk to low and very low risk. Based on this assessment, several power plants are located in areas classified as low or very low drought risk, while other sites are identified as having no drought risk. The assessment results are used to support site‑specific water management planning, including water storage management, securing backup water sources, and implementation of water efficiency and water recycling measures to mitigate potential water scarcity risks.

Based on the assessment of the Group’s 14 power plant sites, the results indicate that 100% of the assessed sites (14 out of 14 sites) are located in areas classified as no drought risk, very low risk, or low risk. Accordingly, the Group has identified that it does not operate in water‑stressed regions, and none of sites are located in areas classified as medium, high, or very high drought risk during the assessment period.

For power plant projects subject to the Environmental Impact Assessment (EIA) process, even the sites are not located in the water stress area, water‑related issues are also identified and assessed during project development in accordance with applicable laws and regulations. This process includes consideration of water availability, water use, and potential impacts on surrounding communities. As part of the EIA process, the Group engages with relevant stakeholders and local communities to communicate project information, identify concerns related to environmental and water issues, and incorporate stakeholder feedback into project planning and mitigation measures, supporting responsible water management at applicable sites.

Managing water-related risks may result in additional operational expenditures for the Group, including costs associated with securing alternative water sources, water storage management, water treatment and recycling systems, and implementation of mitigation measures to ensure sufficient water availability. These costs are managed as part of normal operational expenditure to support stable and continuous electricity generation. Measures to mitigate water-related risks are implemented through operational improvements and efficiency enhancements within existing water management and production systems, including water recycling, process optimization, and initiatives to reduce water loss from production processes.

3.3 Water Management Planning

Across the Group, water management measures are implemented company‑wide to reduce water use throughout electricity generation operations. The Group applies water conservation practices consistently across its power plants, including efficient water usage planning, reuse of treated wastewater from production processes, substitution of primary water usage with treated water, and installation of supporting infrastructure such as pumping systems to maximize water recycling.

At the power plant level, the Group implements site‑specific actions to reduce water use at individual power plants, taking into account the characteristics and operating conditions of each site. Each power plant establishes efficient water usage plans and implements measures to maximize water recycling and reduce water loss from production processes. At biomass power plants, site‑specific actions include the “Blowdown Reduction” initiative, which reduces water consumption by improving chemical efficiency in water treatment systems through chemical quality control. In addition, specific power plants have implemented measures to reduce water evaporation, such as installation of solar floating systems at raw water reservoirs, drainage system cleaning, and reservoir dredging to increase on‑site water storage capacity.

4. Projects

The Group has implemented several projects and operational initiatives to strengthen water security, enhance water use efficiency, and mitigate water-related risks across its power plant operations.

4.1 Blowdown Reduction Initiative

At the project level, site‑specific water management plans are implemented through cross‑functional collaboration among quality control and safety, health, and environment functions, which focuses on reducing water loss from production processes by improving chemical efficiency in water treatment systems practices to reduce blowdown and overall water consumption.

The Blowdown Reduction initiative has been implemented at 17 power plants, covering biomass power plants, MSW power plants, and natural gas power plant within the Group.

4.2 Cooling Tower Water Efficiency Improvement

Measures have been implemented to reduce water discharge from cooling tower systems, supporting more efficient water use in power generation processes and reducing overall raw water consumption.

4.3 Solar Floating Systems At Raw Water Reservoirs

To reduce water evaporation and improve water retention, the Group has installed solar floating systems at raw water reservoirs, such as at the Chokchai power plant. This initiative supports water conservation while simultaneously utilizing renewable energy solutions.

4.4 Reservior Dredging And Drainage System Improvement

Biomass power plants have undertaken drainage system cleaning and reservoir dredging activities to increase water storage capacity during the rainy season. These actions enhance water availability and support operational continuity during dry periods.

4.5 Securring Backup Water Sources

To mitigate drought risks, the Group has secured backup water sources, including groundwater, for use in certain power plant activities. For solar power plant projects located in remote areas, groundwater exploration and permitting have been incorporated into water resource management planning to ensure sufficient water availability for operational needs such as solar panel cleaning.

4.6 Wastewater Reuse And Zero-discharge Practices

Treated wastewater from office buildings and production processes is reused within power plant areas for activities such as cooling, road cleaning, dust suppression, and irrigation of green areas. The Group applies a zero-discharge approach to public water sources, ensuring that no wastewater is released outside project boundaries after treatment and quality monitoring.

5. Relevant Documents