NI Water urged to review energy strategy

The Department for Regional Development (DRD) has urged Northern Ireland Water to review its processes and systems to improve energy efficiency and minimise emissions.

The call comes as part of a 172-page document outlining Northern Ireland ‘s 25-year strategy for the water sector.

The DRD said that, with energy costs set to increase in the future, NI Water must identify how energy efficiency savings might be achieved through innovative management and procurement of its assets and infrastructure.

The company must also continue to increase the amount of energy it secures from renewable sources such as wind, solar, hydro and anaerobic digestion.

The document pointed out that pumping and treating water and sewage is “extremely energy intensive”, and that NI Water is the largest single electricity consumer in Northern Ireland.

“Despite the recent drop in energy prices, it is likely that energy prices will increase which could see annual power costs rise to around £43 million by 2020,” it said.

“This does not factor in growth or future improvements in infrastructure needed for European compliance, both of which will see energy costs rise even further.”

To manage future power costs and carbon emissions, the water firm will need to deliver ‘greener’ services, by continuing to maintain and upgrade assets and infrastructure to improve services and protect the environment.

However, the report said, this must be done without creating a “legacy of costly high energy assets” to be paid for by future customers.

“This means moving away from conventional high energy water, wastewater and drainage solutions and adopting innovative, natural approaches where issues are addressed at source,” it added.

The DRD said it would develop short- and long-term energy efficiency targets for NI Water through the water industry price control process, and revise the company’s project appraisal process to ensure that drinking water investment decisions are based on whole-life energy and carbon costs.

Cutting costs

The document laid out the government’s approach for the whole of the water sector in managing all of Northern Ireland’s water needs.

It looked at how the sector can provide high quality sustainable supplies of drinking water to households, industry and agriculture; manage flood risk and drainage in a sustainable manner; achieve the environmental requirements of the Water Framework Directive in a sustainable manner; and provide sustainable water and sewerage services that meet customers’ needs.

DRD said NI Water had successfully reduced its overall costs since 2007, but operational costs remain higher than an average English or Welsh company.

It said there is “no doubt” costs can be reduced further to close the gap with similar companies in the UK while improving service levels.

Source: DRD

In an interview with Utility Week, NI Water chief executive Sara Venning said a “key feature” of the company’s PC15 business plan was to maximise its use of renewables.

However, she also said a lack of funding from the government meant the company had been unable to sign up to a medium-term plan – “a key requirement for a regulated utility”.