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Exploring the Water-Energy Nexus on World Energy Efficiency Day 2024

Since 1998, every March 5th marks World Energy Efficiency Day. Originating from Austria during the First International Meeting on Energy Efficiency, this initiative seeks to underscore the imperative of curtailing energy consumption through judicious and sustainable practices.

Advancing energy efficiency hinges on refining production processes, embracing renewable energy alternatives over fossil fuels, and advocating responsible consumption and recycling, among other measures. But how does this relate to water and the water industry? Energy and water are in some respects inextricably linked. At every stage of the water cycle— from production, transportation, treatment, and heating of water to the collection and treatment of wastewater—energy is consumed. Just as the production of water demands significant energy, harnessing energy requires considerable water resources. Therefore, progressing energy efficiency is imperative for the water sector.

Water-energy nexus

In 2016, the International Energy Agency (IEA) released a report that looked at the critical interplay between energy and water. It estimated that the electricity consumption of the water sector worldwide was 4% of total global electricity consumption.  However, the report stressed that within the next quarter-century, energy consumption in the water sector will more than double. This is due to a surge in desalination projects worldwide in an attempt to tackle the increasing water shortage threats due to the impacts of climate change, economic growth and population expansion. 

It estimated that the electricity consumption of the water sector worldwide was 4% of total global electricity consumption

The report highlighted that by 2040, these ventures are projected to constitute 20% of the electricity demand associated with water-related activities. Additionally, the escalating requirements for large-scale water transfer initiatives and enhanced wastewater treatment further contribute to the escalating energy needs of the water sector.

The report continues to explain that there is a large disparity between countries regarding the amount of electricity consumed. In the United States and the European Union, this share remains at approximately 3%. Conversely, in the Middle East, it is expected to surge from 9% in 2015 to 16% by 2040, chiefly driven by the expansion of desalination capacity.

  • Water availability, particularly in emerging economies, is poised to arise as an increasingly pivotal concern

The report highlighted that by 2040, these ventures are projected to constitute 20% of the electricity demand associated with water-related activities. Additionally, the escalating requirements for large-scale water transfer initiatives and enhanced wastewater treatment further contribute to the escalating energy needs of the water sector.

The International Energy Agency believes that the latest technologies and effective policies are key to mitigating water and energy demands, alleviating in this way, potential bottlenecks in the water-energy nexus

The report continues to explain that there is a large disparity between countries regarding the amount of energy used. In the United States and the European Union, this share remains at approximately 3%. Conversely, in the Middle East, it is expected to surge from 9% in 2015 to 16% by 2040, chiefly driven by the expansion of desalination capacity.

Water availability, particularly in emerging economies, is poised to arise as an increasingly pivotal concern. For example, China and India, both reliant on nuclear and coal-fired power plants, are witnessing a surge in water demand from various end-users, complicating matters in regions already grappling with water stress.

The International Energy Agency believes that the latest technologies and effective policies are key to mitigating water and energy demands, alleviating in this way, potential bottlenecks in the water-energy nexus. Local authorities as well as the private sector must put in place strategies that encompass integrating energy and water policymaking, co-locating infrastructure, harnessing energy from wastewater, exploring alternative water sources for energy, and enhancing the efficiency of both sectors.

According to recent data from the World Bank, investments in energy efficiency for the majority of urban water and wastewater utilities will generate the highest return on investment. Electricity costs for water production, distribution, and treatment contribute significantly to operating costs, ranging in many countries from 33% to 82% of non-labour operating costs of water and wastewater treatment plants. By improving energy efficiency, water and wastewater treatment plants will lower energy costs and reduce vulnerability to future tariff increases. This type of expenditure will also improve the facilities’ financial performance, increase creditworthiness, reduce water loss and the need for new investment in power supply, explains the World Bank. 

  • Investments in energy efficiency for the majority of urban water and wastewater utilities will generate the highest return on investment

Given the vital link between electricity and water, the water sector is currently on the road to improving its energy efficiency. In this article, we take a look at some of the pioneers in this respect and their latest projects:

ACCIONA’s SCREEN Project

In 2020, ACCIONA launched an innovative remote-control system called the Screen Project. The aim was to optimize the energy efficiency of wastewater treatment plants. At the beginning of 2020, ACCIONA and Canal Isabel II implemented the technology in 14 wastewater treatment plants across Madrid. The results could not have been better, as it enabled reductions in energy consumption of up to 15-20%, which translated into a reduction in CO2 emissions of more than 1,500 Tn/year. 

Reaching zero emissions in Abu Dhabi’s water production

EWEC, a prominent company in water and electricity management in the UAE, has recently released a report outlining future capacity needs for Abu Dhabi. By 2031, water production is expected to be nearly emissions-free, and more than 50% of electricity will come from renewable sources by 2030. The company aims to support the UAE's transition to clean energy and low-carbon water solutions by, among other things, increasing solar PV capacity and deploying battery energy storage systems for flexibility.

Idrica proposes six steps to improve energy efficiency in water operators

Last year, Idrica released an article which emphasized the importance of energy efficiency in water distribution and sanitation services. According to the digital company, implementing an Energy Optimization Plan is crucial for achieving continuous improvements in energy efficiency. The plan involves six phases: data collection, information processing, field measurements, energy diagnostics, improvement proposals, and monitoring. The benefits of applying an Energy Optimization Plan include gaining reliable knowledge of energy consumption, identifying factors affecting energy use, assessing equipment efficiency, and prioritizing energy-saving opportunities based on profitability.

Thames Water reduces its carbon footprint with sewer power

This year, Thames Water has launched its second successful gas-to-grid project, aiming to heat around 4,000 homes in West London using converted sewage sludge. This initiative is part of the utility’s commitment to reducing carbon emissions and fighting climate change. In the UK, the government also announced funding of £80.6 million for a new green heating project that would use sewer power to heat nearly 2,000 homes and businesses.

EBMUD generates clean energy from water pressure in its water pipelines

The East Bay Municipal Utility District (EBMUD) in California is taking steps towards its goal of being carbon neutral by 2030 by partnering with InPipe Energy to generate electricity from the water flow in its system. This innovative project installs hydroelectric systems in the water distribution pipelines, reducing pressure while generating clean energy.