Powering the water sector

We help water companies drive efficiency, satisfy regulatory requirements such as PR19 and AMP7, deliver the optimal experience for their customers and unleash the innovation that will drive a more sustainable future.

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Meeting the many demands of water regulators, consumers, environmental groups and shareholders is undeniably challenging. We work with many leading UK water companies and deliver a combination of innovative energy technology and end-to-end integrated energy solutions required to deliver increased efficiency, reliable supply and reduced carbon emissions.

We work closely with water treatment customers to provide a reliable power supply, 24/7

The pressures on water companies leading into AMP7

As the 2020-2025 Asset Management Period 7 (AMP7) progresses, and as part of the current Price Review consultation (PR19), Ofwat has made clear its focus on reducing prices. For customer bills to be reduced while investors continue to see a healthy return, there is no choice but to improve efficiency. Pressures from regulators and consumers to maintain a secure and consistent supply are increasingly determining financial return; and regulators and consumers are no less demanding when it comes to visibility of environmental sustainability. Innovation will be key if the water industry is to meet the many demands placed upon it.

What role does energy have to play?

New approaches to generating and managing energy have an important role to play in enabling the water industry to respond to the challenges it faces.

  • On-site generation and storage technologies improve operational resilience and reduce the costs of consuming energy from the grid
  • Renewable energy technologies, such as solar, reduce carbon emissions and lower costs
  • Flexible funding models and innovative commercial contracts help water companies overcome the capital expenditure constraints that often prevent them from deploying more efficient energy technology and also provide certainty over future returns
  • Working with the right partners is key to enabling water companies to unlock the opportunities presented by energy
86%
Leaders in sustainability who say their sustainability initiatives help them to tap into green finance opportunities
81%
Leaders in sustainability who say decarbonisation through energy management is a critical part of their sustainability plan
61%
Leaders in sustainability who already have a decarbonisation plan, based on scientific data and targets, in place

Source: Why wait to pursue net zero? report, Centrica Business Solutions, 2021.

Energy enables the water industry of the future

New approaches to generating and managing energy have an important role to play in enabling the water industry to respond to the challenges it faces. There are four key areas water companies need to focus on.

Innovate for improved performance
Innovation is key to ensuring a profitable and sustainable future. Ofwat wants to see the sector start driving innovation through better use of data. Through improved big data and analytics, firms can get a better understanding of their systems, manage risk proactively, drive increased operational efficiency and extract greater value from existing assets. Energy insights solutions enable a data driven approach to running a water operation, and demand side response schemes can help water firms to generate new revenue streams from on-site assets.
The power of knowledge icon
Energy efficiency to satisfy stakeholder
Given that investors need to see a healthy return, and environmental regulations allow for no compromise on quality standards, the only way to achieve lower customer bills is by driving greater efficiency . Integrated energy solutions such as CHP, solar and demand side response offer significant opportunities to reduce energy costs and generate revenue to offset energy costs.
less cost, more revenue.
Improve resilience to ensure supply
Water and sewage facilities are a part of the critical national infrastructure and failures in supply are unacceptable to consumers and regulators. The importance of resilience is reinforced by the increasing focus on outcomes and customer satisfaction within the mechanisms used to determine financial returns. On-site generation and storage solutions reduce reliance on the grid, and energy insights solutions provide early warning of potential equipment failures.
Resilience icon.
Build a sustainable future
As part of the regulatory framework, water companies need to report on, and take action to reduce, their greenhouse gas emissions including carbon. Many have made public commitments to significantly reduce their carbon footprint as part of their corporate social responsibility goals. Renewable energy technologies, such as solar, reduce carbon emissions as well as lowering costs.
22MW
Solar installed in UK water company sites generating 20GWh of electricity and saving 7800 tonnes of CO2 pa
53MW
Battery Storage being installed in the UK to provide a range of services including resilience for customer sites and services to grid
1,200
Number of wireless sensors installed across UK water companies to provide real-time energy data