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Bluefield Research

Energy Optimization for Water Utilities: A Digital Playbook for Cost and Carbon Reduction

Energy Optimization for Water Utilities: A Digital Playbook for Cost and Carbon Reduction

Energy costs rank among the top three operating expenses for water utilities, offering significant opportunities for cost savings. Energy use in the water sector accounts for 11% to as much as 40% in operational expenditure (OPEX). This substantial portion and range underscores the potential for optimizing energy costs across the water cycle. Investing in digital solutions that facilitate energy monitoring and management is key to reducing energy expenses.

Effectively managing volatile energy prices is essential, especially in energy-importing markets, as it reduces operational risks and costs. Additionally, concerns about climate change and energy consumption have intensified the focus on energy efficiency within the utility sector.

Several initiatives from national governments and municipalities provide regulatory support for energy efficiency in the water. Europe is leading the way by implementing mandatory energy audits and setting targets for energy neutrality. Standardization in asset management practices, such as the International Organization for Standardization (ISO) Asset Management Standard for water and wastewater utilities, has established clear guidelines and incentives at the international level.

The growing availability and reliability of new, data-driven technology solutions—capable of demand forecasting, real-time hydraulic system monitoring, and energy demand management—equip utilities with a modern suite of tools.

This Insight Report presents an overview of key energy management trends in the water, wastewater, and desalination sectors. This analysis explores strategic areas where digital energy optimization solutions can have the most significant impact, particularly in pumping, aeration, and load shifting, highlighting offerings from leading players in the industry. Detailed case studies and profiles of key players are included.

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