Trends in the water industry Towards a Smart Water Network

Trends in the water industry Towards a Smart Water Network

Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions 2

Why are we here today? Reduce leakages Regulation compliance Accurate planning Replace/upgrade infrastructures Reduce GHG emissions Increase distribution efficiency Energy optimization Develop new source water supply Retain workforce knowledge Ensure infrastructure security Reduce operational costs Improved decision making Etc. Increase customer satisfaction Ensure water supply Ensure water quality Main Drivers Ensure water efficiency Ensure business efficiency 3

Context: The total energy consumption of US water utilities is estimated to be 56 billion kwh equating to $4 billion annually in OPEX (EPA) Between 5-10 billion Kw/h of power generated in the US is spent in water that is either leaked or not paid for by customers (AwwA) In developing countries, about 45 million cubic meters are lost daily through water leakage in the distribution networks enough to serve nearly 200 million people (WB). Energy prices increase at a faster rate than water tariffs meaning reduced margins for water utilities. Etc 4

The case for Water Energy represents a significant cost component for water plant operators Energy savings provide a real cost saving opportunity OPEX of the total operating cost is Energy (mostly electricity) In an environment of rising costs but steady water prices, Energy savings become a MUST Source: 5

Improving efficiency CAPEX for improving efficiency: i.e. pipe replacement, installation of VSP, Fine, but: High amounts Budgetary constraints Approval periods Implementation periods Current IT capacity is not used at a 100% Projects are not aligned Data silos Not getting the best out of the investments 6

Smart Water Networks Business Rationale General Context: Water utilities must maintain / improve supply & quality efficiency and achieve business profitability while facing and promoting a reduction in the overall water consumption and assuming fixed, low water prices. General Solution: Mitigation of operational expenditures through improved efficiency levels in their key processes. Smart water networks solutions contribution: Constant improvements in technology allow faster and better data analysis that can turn into a reduction of operational costs and improved efficiency (vs. traditional CAPEX approach) 7

Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions 8

Smart Water Networks Smart Water Networks solutions improve the efficiency, longevity, and reliability of the underlying physical water network by better measuring, collecting, analyzing, and acting upon a wide range of network events. Source: SWAN Smart Water Networks Forum (www.swan-forum.com) Use of information technology to optimize the utility s capacity at a minimum CAPEX cost Data Information Decisions Actions SWN Solutions More Better Accurate Smarter 9

Cybersecurity IT Management (One Stop Shop) What? Integration Approach Integrating third-party software products with self-developed tools for complex architectures Enterprise Decision Support CIS Presentation Layer and CRM web / Billing Mobile Apps CIS / CRM ERP GIS Business Analysis Data Warehouse Executive Reports EBS- Enterprise Integration Bus WMS DMS SCADA MES MDM Distributed Digital IP Communications Network Real Time Integration Bus Critical Tasks AMI Meters Feder Devices SUB Devices 10

What? Smart Water Network Water Water Vertical Solutions CMMS GIS EAM Asset Management WOM Workforce Management WMS Energy Optimization Leackage Management Water Quality Resources Management Customer Portal Hidraulic Models CIS CRM/BIlling MDM DMS SCADA AMI ESB Enterprise Service Bus Cross Solutions ERP Supply Change & Procurement Financial Management HumanResources Facilities Management DWH Big Data Analytics Business Intelligence Mobility IT Services Hosting Cloud Services IT Monitoring and Administration IT Consulting Cybersecurity Operation Service Desk Infrastructure &Equipment RTUs Protection & Measurements Electrical Equipment Primary and Secondary MV Switchgear, Overhead Reclosers and Sectionalizers Substation Automation Power Quality SaaS Weather Forecasting Energy Efficient Management 11

SWN - Fundamentals Smart Water Network s fundamentals - The 3 I s: Information: Realizing the full potential Use information that you might not even know you have Integration: Make the best out of current investments - SWN are able to make the best of the current IT installed base Innovation: The constant future Flexibility to take over the utility s challenges as they come. Phase 1 Information Fase 2 Integración Fase 3 Innovación 12

Benefits (or what you might be missing) Operational More information for carrying out O&M activities More accurate information for carrying out O&M activities New functionalities not available otherwise Optimization of the existing infrastructure and resources Business Improved decision making Streamlining OPEX and reduction / better planning of CAPEX needs Better ROI (existing investments) 13

Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions 14

Example 1 Belo Horizonte - Brazil - Utility Name: Copasa - 12.1 million people served (3.1 Belo Horizonte) - Over 25000 miles of distribution pipes SCADA Operational data Maintenance - Improved response on outage events - ( 14% outage times) - Improved maintenance policies - ( 33% repair times) Real time data Simulated data Predicted data Maintenance Data - Improved network control - Improved planning Hydraulic Model GIS - Improved public image Geodata - Increased ROI on all these investments 15

Example 2 Madrid - Spain - Utility Name : Canal Isabel II - 6 million people served - Over 9 000 miles of distribution pipes SCADA Work Order Alarms Maintenance - Improved network control - Improved planning - Company wide automated business rules Real time data + Simulated data Hydraulic Model GIS Maintenance Data - Improved Maintenance Policies - Improved service levels - Improved ROI on all these investments 16

Information s Islands Company: Anglian Water (UK) Bigger company in UK Strict regulation 6% waterloss 4.3 millions of clients 112.833 km pipeline Maintenance minimal losses Corporate Business Intelligence Customer Information Systems GIS Ofwat report Maintenance Systems WMS Hydraulic Models Reduce fines - Severn Trent: 35.8M - Thames Water: 9.7M ERP SCADA OFWAT 17

The best ROI Company: Kahramaa (QT) 100% desalation water 1.4 mill. clients NRW initial 57% 2500 km pipeline Target: Water all day 7x24 Production 360 Mm3/year Services + Technology = NRW more than 50% 2320 olympic pool / year 50% plant production More Eficiency Company in GCC Ahorro 14M /año = 57M durante el proyecto 18

Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions 19

The Road Ahead Standards Avoiding technical double-dutch Talent management Vision, direction, leaders Data ownership Break the data silos Fuel innovation Global Institutional Venture capital ($) Smart Water 2% Smart Grid 41% Smart Buildings 17% Smart Transportation 22% Smart Industrial 17% Source: Cleantech Group Data and Analysis 20

Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions 21

Conclusions SWN = Reducing OPEX through IT (it s all about data) Remember the 3 I s: Existing + New = Great ROI Operational and business management oriented benefits You will get benefits and features not available otherwise There are challenges, but it is worth to work them out You will get better ROI of your investments in IT 22

Let s get smart because there is no substitute for water 23

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