Powering the water sector

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.

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.

• Onsite generation improves operational resilience and reduce the costs of consuming energy from the grid, like Combined Heat and Power (CHP)
• 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

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