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ICT
Water
Smart water management aims to guide the utilisation of water in a manner that drives efficiency, sufficiency, and sustainability by integrating innovative technologies such as sensors, smart water metering, information systems, data acquisition and decision support systems.
Clean Water And Sanitation
Sustainable Cities And Communities
Description
Smart water management aims to guide the utilisation of water in a manner that drives efficiency, sufficiency, and sustainability. To achieve this aim, contemporary management approaches are underpinned by the integration of innovative technologies, such as sensors, smart water metering, information systems, data acquisition and decision support systems.
As much as two-thirds of the global population may live in regions with limited access to freshwater resources by 2050, according to Statista (2021). This report further argued that water shortages will also be felt in industrialized countries as climate change is leading to more frequent weather-related catastrophes and the increasing industrial demand for water is expected to put enormous pressure on freshwater accessibility.
Achieving water security, therefore, requires innovative ways to address the delivery of a clean and steady supply of water while optimising the operation, maintenance and management of water utility companies. Smart water management systems are one of the strongest interventions in achieving water security.
Value Model
BENEFITS
Economic
Reduce water and associated energy consumption bill as customers are able to quickly access billing and usage information through a customer portal, apps and smart meters (Customers)
Operational optimisation will reduce costs associated with utility infrastructure (leakage, theft, etc.), personnel, and operational inefficiencies (automation of processes, data silos, etc.)
May generate employment associated with the development of apps based on large volumes of produced data
Ensures the provision of a clean and steady supply of water to industries and commercial entities
Environmental
Prevent biodiversity losses, water and air pollution and landscape damage related to water extraction projects and delivery services
Reduce GHG emissions relating to water delivery and energy use required for heating of water
Social
Facilitates the provision of clean and steady water supply leading to the improved life quality
Real-time data sets and results of quick processing of large data sets are available to customers, utility companies, governmental officials and research institutions support transparency and foster effective decision-making, relevant research opportunities as well as the implementation of practical solutions
City Context
With the world’s population increasing by around 4-fold in the 20th century, human water consumption has increased by around 5, 18 and 10 times for agricultural, industrial, and municipal use, respectively (Makarigakas, 2019). As a greater percentage of the global population is expected to live in urbanised centres, there will be a pressing need, furthered by the impact of climate change and increasing pollution rates, for streamlining and augmenting urban water management systems.
Supporting Factors
Use of technology: Technology is now largely applied in the distribution and regulation of services, goods and resources, particularly throughout the urban landscape. Sensor applications and wireless connections are ubiquitous within cities where there is a higher demand for the timely delivery of services, goods, and resources.
Transparency: With the large volumes of data now being collected, citizen groups are demanding greater insights into resource usage and system performance. Smart management systems facilitate the instantaneous and continuous means of data collection and processing.
Tech-savvy Workforce: People entering the workforce are generally very dependent and comfortable with technology and are therefore expected to support existing technologies and develop newer practices.
Opportunities for optimisation: Automation, real-time monitoring systems, and data-driven and model-based approaches enable the identification and prediction of system issues, thereby allowing an immediate response to potential infrastructural damage, service interruption, water contamination and other system failures.
The Sustainability Agenda: Sustainability Development Goal 6 focuses on the accessibility to clean water and proper sanitation for all. Smart water management is therefore not only a mechanism for cost-savings, and operational efficiency but a path to water security without jeopardising the integrity of the environment.
Government Initiatives
There are several governmental initiatives on both regional and national fronts being used to support smart water management. Examples are provided below:
Cohesion Funds: Cohesion funds provide co-finance capital-intensive investment opportunities in water infrastructure and help EU Member States comply with water legislation. There are three different categories of funding covered that relate to water efficiency: 'Risk prevention', 'Other measures to preserve the environment and prevent risks', and 'Management and distribution of drinking water (European Union, 2021)
Life+ Funds (DG ENV): This funding scheme provides financial support for environmental & nature conservation projects throughout EU.
German Federal Ministry of Education and Research: This Ministry funds the development of integrated planning tools for the sustainable utilisation of water resources and the adaptation of water technologies to different environmental, social and economic conditions
Stakeholder Mapping
Market Potential
The Global Smart Water Management Market is expected to register a CAGR of approximately 12.5% over the forecast period (2021 - 2026) (Morder Intelligence, 2022). Factors such as growing population, increasing urbanisation, ageing infrastructure and the implications of climate change on water resources are driving the worldwide growth of the market. For example, 480 million people in Asia are expected to face water scarcity in the future and over 500 million live in areas where water consumption exceeds locally renewable water resources by a factor of two (MordorIntelligence, 2022).
Roll-out of smart water management systems is often limited by the lack of funding to cover the high operation costs. Nonetheless, the global smart water meter market size was USD 1.38 billion in 2018 and is projected to reach USD 3.07 billion by 2026, exhibiting a CAGR of 10.6% during the forecast period (FortuneBusiness, 2020).
Germany is one of Europe’s largest exporters of water and wastewater technologies with an export volume of EUR 1.1 billion in 2018 (Germany Trade and Investment, 2019). The German market for sustainable water management is also among the largest in Europe with a water supply and wastewater treatment worth around EUR 17.2 billion annually (ibid). The US state of California is one region leading in the installation of smart water waters by cities' officials to help consumers improve the management of water consumption through access to real-usage data (SmartEnergy International, 2018).
It has been predicted that there will be a 3.5% growth in smart meter adoption between 2016 and 2022 in the Asia-Pacific as strong private sector investment will help increase the pace of smart meter penetration in the region (SmartEnergy Internationa, 2018). In Africa, on the other hand, smart water meters are still very much in the embryonic stage.
Cost Structure
Operating Models
Varying operational models can be adopted for smart metering systems
Automatic switching: It would include retrofitting all existing household meters to be smart meters through governmental mandates.
Voluntary switching: This option is voluntary, therefore the adoption of smart meters would not require governmental intervention.
Legal Requirements
The Urban Wastewater Treatment Directive (Directive 91/271/EEC): addresses the need for the collection, treatment and discharge of domestic wastewater, Wastewater from certain industrial sectors to eliminate the potential for adverse environmental effects.
The Drinking Water Directive (Directive 98/83/EC): addresses the need to protect human health from adverse effects of any contamination of water intended for human consumption by ensuring that it is wholesome and clean
The "Directive 2000/60/EC of the European Parliament and of the Council establishing a framework for the Community action in the field of water policy" or, for short, the EU Water Framework Directive (WFD) expand the scope of water protection to all waters, surface waters and groundwater: achieving "good status" for all waters by a set deadline,
The Directive for Integrated Pollution and Prevention Control (IPPC), addresses the pollution from large industrial installations, later transformed into the Industrial Emissions Directive.
The Federal Water Act, Wastewater Charges Act, the Drinking Water Ordinance and the Wastewater Ordinance create the legal basis for transboundary and sustainable water management in Germany.
Data and Standards
European Water Stewardship Standards. These standards were developed by the European Water Stewardship within the stakeholder process coordinated by the European Water Partnership (EWP). The European Water Stewardship (EWS) operates within the context of EU Policy aims to give indicators for the whole water cycle: from extraction to re-allocation.
ISO/AWI 24591-2: Data management guidelines for service activities relating to drinking water supply, wastewater and stormwater systems
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