INSIGHTS

The Water Sector’s Net Zero Shift

An IoT Solution for Water Loss
7 minute read

May 23

Current Smart Meter Adoption

Water and wastewater management may not be the first sectors that come to mind in the climate conversation, but they rank among the most energy-intensive services run by local governments today. The water sector consumes significant electricity – up to 3% of global usage – and contributes nearly 10% of total greenhouse gas emissions.

As climate targets tighten, it is clear that any serious path to net zero requires smarter, more efficient water management. A growing number of utilities are turning to AI, IoT and digital twins to tackle inefficiencies, reduce emissions and future-proof water infrastructure. These technologies enable smarter operations and lay the groundwork for a climate-aligned, resilient water future.

Why is Water So Energy Hungry?

Moving water from its source to homes and businesses requires substantial energy. This includes pumping water from rivers or underground, cleaning it through filtration and chemical treatment and transporting it through extensive pipelines. After use, wastewater must be collected and treated before being safely released back into the environment. Each stage consumes significant electricity.

Though managed as a public utility, water operations resemble a large-scale industrial system. The infrastructure is complex and runs continuously, demanding constant energy input. This scale makes water and wastewater management one of the largest energy consumers for many local governments.

Unfortunately, pressures on water systems are growing rapidly. Expanding populations, urban growth, aging infrastructure and climate change all challenge the reliable supply of clean water. For many utilities, balancing these demands with energy efficiency is difficult. Yet improving efficiency is essential, not only to reduce costs and carbon emissions but also to preserve water resources for future generations.

The Digital Turn: Four Pathways to Net Zero

Achieving net zero for water utilities requires more than adopting new technologies. It demands innovative solutions that boost efficiency, cut emissions and lower costs to drive true sustainability. Leading utilities are embracing four data-driven strategies to transform operations and meet net zero targets.

Zero water waste

Water loss through leaks, pipe bursts and inefficient demand management accounts for up to 30% of treated water globally. This inefficiency also contributes to climate change, as the energy used to treat and pump lost water drives up greenhouse gas emissions and undermines net zero efforts.

Various technologies are helping utilities tackle this challenge and minimize water loss around the world. Innovations such as IoT-powered smart water meters track consumption in real-time, detect leaks and flag unusual patterns. This tracking enables faster, proactive responses that reduce unnecessary water and energy use, while lowering operational costs.

Similarly, tools such as the HydroRisk Visualizer, implemented by a major UK water utility, enhance system management. Powered by AI and IoT, this tool monitors pressure and flow data from key assets alongside customer reports. This real-time visibility allows utilities to spot issues early and respond swiftly. 

Since adopting this tool, the utility has significantly reduced leaks and their impact, saving over £1.3 million annually. It also predicted and prevented a major water outage, saving £7 million through timely intervention.

Zero pollution

Protecting natural water bodies from pollution is crucial to ecosystem health and regulatory compliance. With over 1.8 billion people relying on contaminated water sources, safeguarding these waters is equally vital for public health and community wellbeing. However, many utilities face challenges like limited visibility, delayed detection and reactive responses, making contamination prevention difficult.

 

Real-time water quality monitoring, AI-powered pollution risk models and smart catchment systems enable utilities to quickly detect and respond to blockages and contamination events. These tools improve situational awareness, helping operators coordinate faster responses to prevent environmental damage. Early detection has helped utilities reduce pollution from sewage pumping stations by up to 50%.

Utilities also use digital twin technology to create detailed virtual models of wastewater treatment plants. These simulations allow early issue detection and solution testing without disrupting operations. One leading utility leveraged the tool to prevent pollution and avoid potential penalties of £5–10 million annually by ensuring compliance with environmental standards.

Net zero carbon

Cutting carbon emissions throughout the water lifecycle is a complex challenge that requires more than traditional methods. Most of these methods often lack the precision and foresight needed to drive meaningful reductions in energy use and emissions. 

To meet this challenge, utilities are turning to data-driven insights and automation to transform their operations. For example, the use of digital twins allow utilities to simulate scenarios and optimize processes for lower energy use and emissions. These models also provide a comprehensive carbon footprint analysis, which helps utilities understand where to focus their decarbonization efforts for maximum impact. Major utilities like Severn Trent Water have adopted these award-winning innovations and are already seeing measurable results.

Automation is also proving critical in the drive toward net zero carbon. By enabling precise control over pumps, aerators and treatment processes, these technologies help cut down on unnecessary energy use. Utilities that have adopted them report up to 15% reductions in energy consumption along with clear drops in carbon emissions.

Zero regrets investment

Stretching every dollar matters more than ever for utilities managing aging infrastructure and shrinking budgets. That’s why many are turning to data to make smarter, more strategic investment decisions.

With integrated platforms that track asset health, performance and risk in real time, utilities can shift from reactive fixes to proactive planning. Similarly, advanced analytics help pinpoint the “next best intervention” – whether its repairing a key pipeline or upgrading a pump station. This targeted approach reduces wasted spend, cuts down on emergency repairs and helps utilities stretch limited resources further.

Laying the Groundwork: What It Takes to Reach Net Zero

For water utilities, the path to net zero isn’t just about adopting cutting-edge technologies, it’s about building the right foundations. One of the biggest hurdles is data. Too often, utilities lack consistent, high-quality data or operate in silos that prevent organization-wide insight. Without reliable data, even the most advanced AI tools fall short.

What’s needed is a cultural shift: treating data not as a technical byproduct but as a strategic business asset. This means embedding data ownership across teams, aligning on outcomes and investing in strong data governance frameworks before layering on advanced analytics.

At the same time, utilities need long-term, outcome-driven partnerships that focus on sustainable innovation rather than quick fixes. These collaborative relationships help align goals, share expertise and drive innovation sustainably over time. 

Ultimately, modernising water infrastructure is not just about meeting compliance or reducing costs. It is a strategic imperative to protect communities and the climate. Utilities that prioritise these foundational steps are best positioned to accelerate their transition to net zero while building resilience for the future.

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