China's bid to diversify its energy portfolio and reduce its dependence on coal could also help the country solve the challenge of water shortage, a U.S. scholar said here Thursday at a symposium.

Coal production and use jointly account for about 20 percent of China's annual water consumption, said Jennifer Turner, director of the China Environment Forum, which was initiated in 1997 by Washington-based Woodrow Wilson Center.

She said China could make use of alternative energy forms such as oil shale to save millions of gallons of water annually.

"Shale gas is the new hot topic in China," Turner said, adding that China has also spent more on renewable energy than any other country in the world.