Efficiency optimization of urban water systems is a growing concern for water utilities worldwide. This case study aimed at evaluating the impact of using cloud-based tools on the reduction of both real (real-time network monitoring) and apparent water losses (integrated customer meters management) in two water utilities. The incorporation of smart water solutions with a methodology for the management and operation of the systems allowed us to diagnose, prioritize areas and define actions to improve efficiency. Using a real-time monitoring tool allowed us to categorize bursts and to evaluate their impact on water loss volumes and to identify operational inefficiencies regarding detection and repair times, particularly in small and medium bursts. Additionally, the implementation of an integrated customer meters management tool allowed for an optimized meter management reducing apparent losses by estimating metering errors more accurately, enabling the water utilities to replace meters based on specific lifespan. Digitalization, through the implementation of optimized algorithms and early warning systems, allowed the analysis of data in a methodical and prompt manner resulting in non-revenue water reduction up to 8% in 3 years while improving the digital organization of data and its quality (reliability and accuracy), interdepartmental organization and communication, capacity building and utilities’ image among stakeholders.

In recent years electricity sectors worldwide have undergone major transformations, referred to as the “energy transition”. This has required energy planning to quickly adapt to provide useful inputs to the regulation activity so that a cost-effective electricity market emerges to facilitate the integration of renewables. This paper analyzes the role of system planning and regulations on two specific elements in the energy market design: the concept of firm capacity and the presence of distributed energy resources, both of which can be influenced by regulation. We assess the total cost of different regulatory mechanisms in the Brazilian and Mexican systems using optimization tools to determine optimal long-term expansion for a given regulatory framework. In particular, we quantitatively analyze the role of the current regulation in the total cost of these two electricity systems when compared to a reference “efficient” energy planning scenario that adopts standard cost-minimization principles and that is well suited to the most relevant features of the new energy transformation scenario. We show that two very common features of regulatory designs that can lead to distortions are: (i) renewables commonly having a lower “perceived cost” under the current regulations, either due to direct incentives such as tax breaks or due to indirect access to more attractive contracts or financing conditions; and (ii) requirements for reliability are often defined more conservatively than they should be, overstating the hardships imposed by renewable generation on the existing system and underestimating their potential to form portfolios.

Efficiency is a key topic nowadays in the water sector as customers' expectations are continuously increasing, legislation becomes more demanding, utilities become more exposed to public opinion and expectations are increasing towards a high-quality service at an affordable cost and both combined with high risk avoidance. The implementation of efficiency projects, such as Non-Revenue Water (NRW) reduction projects are fundamental both from an economic and an environmental perspective. However, decisions on the implementation of these projects are often reduced to short-term economic criteria or to a cost-benefit analysis at best, not considering an adequate timeframe that would potentially allow the accommodation of the adopted NRW reduction measures (capital and operational expenditures). Infrastructure asset management requires a strategic view on water systems based on the long-term balance of performance, cost and risk aiming at the adequate management of utilities' physical, human, technological and intangible assets. Water managers should take these principles into consideration when deciding whether to implement efficiency projects, since the long-term effect of current water systems' inefficiencies can translate into significant capital expenditures in the future. This paper presents an evaluation of tangible and intangible gains that result from NRW reduction projects and why intangible gains should be part of decision-making processes on whether to implement them or not.