Water's Role in Smart Cities

RESEARCH ARTICLE Water’s Role in Smart Cities

Teresa Zawerthal da Silveiraa, Helena M. Ramosb

aMaster student of Civil Engineering at Instituto Superior Técnico, Technical University of Lisbon, Lisbon, Portugal; bPhd. Professor in Civil Engineering Department and CEHIDRO, Instituto Superior Técnico, Technical University of Lisbon, Lisbon, Portugal

Abstract: The water management in smart cities is an issue increasingly valued in the context of financial and environmental sustainability of water supply systems. In addition to the non-return of the investment made in the acquisition, production and distribution associated with the water losses, the supply systems also have a leading role in the management of the urban water cycle, and must comply with this element as a feature increasingly scarce on the planet, thus their conservation is also a civic responsibility. Currently there are increasingly technological innovations capable of making the management of smart water. In this sense, the main objective of this dissertation was to disclose the technological breakthroughs associated with water use and the innovations in methodology and monitoring of water losses in supply systems, as well as the benefits that these measures can offer to the society of today and in the future as well. In addition, an analysis was carried out to the excellent results obtained by Empresa Portuguesa das Águas Livres (EPAL), the public water Company of Lisbon, due to the implementation of measures for the monitoring and water losses control in the distribution network associated with a smart water management. The measures implemented by EPAL are a worldwide reference in smart water management, placing Lisbon at the level of one of the most efficient cities in terms of non-revenue water. Finally, through the evaluation of the financial effort and savings obtained by EPAL in the supply network, was estimated what would be the investment required in the monitoring and water losses control in Water Company, in Porto city, in order to reduce the losses to get sustainable values until 2025.

Keywords: Smart cities; smart water management; smart water system; water supply system; district monitoring areas; water losses.

1 INTRODUCTION urban wastewaters, as well as the management of municipal waste. Since the 1970s, we have observed an increase of environmental awareness, the evolution of technology and The population growth results in an increase and a communications, and the automated production leading to the concentration of water needs for various uses and the need to put environmental issues on the agenda. The report consequent need of wastewater and waste management, in prepared by the United Nations, entitled "Our Common increasingly large amounts. In this reality it is necessary the use Future" emancipates the concept of sustainable development of advanced technologies and the adoption of more robust as the basis for a global economic policy that must go towards management models, that are better suited to the population our current needs without compromising those of future demands (Baptista et al., 2009). generations (Brundtland, 1987). The water industry has been 2 OVERVIEW OF THE WATER SECTOR subject to changes and opinions with regard to the sustainable management of urban water. There are many external factors, Over the past decades, with the growing water demand, the including the impacts of climate change, drought, population risks of pollution and severe water stress in many parts of the growth and its placing in urban centers, which lead to an world have increased. The frequency and the intensity of water increase of the responsibility on providers of water services in crises have increased, with serious implications for public order to adopt more sustainable approaches to the health, environmental sustainability security in both food and management of urban waters. The coverage of the costs, the energy department, and economic development. Although the monitoring of the water without profit and meet the demand central and irreplaceable roles that water plays in all the of customers for the fairness in revenues are some of the main dimensions of sustainable development have become challenges (Boyle et al., 2013). increasingly recognized, the management of water resources and the provision of services related to the water continues to As is referred to in the Annual Report of the Water and Waste be too low in the scale of public perceiving and government Sector in Portugal, there are many structural challenges on the priorities. As a result, the water is often a limiting factor, rather development of modern societies, from the water supply to the than a facilitator of social welfare, economic development and population and economic activities, to the improvement of healthy ecosystems. The fact is that there is water available to meet the growing needs of the world, but not without first

1 dramatically change the way water is used, managed and shared. The global water crisis is a reflection of governance, much more than with the availability of the resources (WWAP, 2015).

In Figure 2.1 the estimated global hydric availability made by the World Resource Institute, as reflected in annual flow of each hydrological basin.

Figure 2.2 – Global assessment of hydric stress, (WRI, 2015). 3 SMART WATER MANAGEMENT IN THE CITIES

3.1 CONTEXT

The smart water management has as objective the exploitation

of water, at regional level or at city level, on the basis of the Figure 2.1 – World hydric Availability, (WRI, 2015). ideals of harmony, sustainability and self-sufficiency, through the use of innovative technologies, such as the water recycling This is not, however, to ensure the supply of water by any among other technologies for water treatment, information means. Until the year 2000, humans had built approximately technology, monitoring and control technology and through 45,000 large dams which, combined with the hundreds of the implementation of the registration system of the water thousands of smaller structures, quadrupled the storage of cycle to work as a "water flow and information." (Tadokoro et water for human consumption in just 40 years. However, it was al., 2011). not examined or was able to predict the effects that, on a global scale, the cumulative construction of dams uncoordinated, 3.2 THE CONCEPT OF SMART CITY deviations of irrigation and the impacts related to the deforestation would have on the extension, availability and The concept of smart city is relatively recent, from the quality of water. Today it has become clear that the human technological innovations and also of the globalised world in activity started to affect the hydrology of the earth. Our which we are currently placed in. presence, our actions and its consequences have changed the very composition of the atmosphere, the precipitation and the A smart city can be defined as the city in which it is performed places where the rain falls; the human behavior is affecting the an investment in human and social capital, by encouraging the pattern of rain and snowfall (Sandford, 2012). use of Information and Communication Technology, ICT, as enabler of sustainable economic growth, providing an The uneven distribution of availability and demand, population improvement in the quality of life of residents and floating, and growth, climate change and water mismanagement aggravated consequently, allow better management of natural resources the situation of extreme water stress. The shortage of water is and energy. The smart cities will be those who are able to not only a threat to human and economic development, but reconcile the human flows through the new technologies, perhaps the main reason for the political instability of the mobility and sustainability. future. However, it is important to recognize that the concept of smart Figure 2.2 presents a global water stress assessment, exposing city is not limited only to technological advances, but aims to the annual volume captured by municipalities, industries and promote the socioeconomic development. Social inclusion is a agriculture, as a percentage of the hydric availability. Thus, the fundamental characteristic of smart cities and all opportunities higher values indicate the locations that have a higher water for the economic development need to be coupled with stress, with higher consumption in relation to the availability of investments in social capital (Colldahl et al., 2013). water, where it will be necessary to adopt a more sustainable approach to water management. The definition of smart cities, by Giffinger et al. (2007), is based on a Model of Smart City. This model is a system of classification in which the smart cities can be evaluated and developed through six distinct characteristics. The Model of Smart City was developed as a classification tool to assess smart cities communities of average size in the areas of economy,

2 people, governance, mobility, the environment and lifestyle. Through this model, a city can examine its current state, and in turn, identify the areas that require further development in order to meet the conditions necessary for a smart city.

3.3 SMART WATER SYSTEM

The concept of smart water system utilizes advances in information technologies for system monitoring data and to achieve greater efficiency in the resources allocation. In addition to the increased efficiency in the water losses control, prevention and early detection of leaks, the smart water system also allows the development of best practice in the management of assets by improving the efficiency of the system in emerging areas, such as in the demand-oriented distribution. Instead of simply following the existing practices Figure 3.1 – Scheme of a smart pipes and wireless sensor network, that pump water at high pressure in the distribution system to (Sadeghioon et al., 2014). reach distant customers, a more smart system could use real Briefly, the smart wireless sensor network is a viable solution time data, variable speed pumps, dynamic control valves, and for monitoring the state of conservation, the pressure and the smart meters in order to balance the demand, minimize the water losses control. The main advantage compared to other overpressure in aging pipelines and save energy (Global Water methods of water losses control normally used is the Technologies, 2013). continuous monitoring throughout the network, without operator intervention. Another advantage is the low energy The use of smart water system to improve the situation of consumption of the wireless sensor network, allowing them to many networks characterized by degraded infrastructure, remain operational for long periods without maintenance, irregular supplies, low levels of customer satisfaction or not (Sadeghioon et al., 2014). proportional bills to actual consumption. The smart water system can lead to more sustainable water services, reducing 3.4.2 SMART WATER METERING financial losses and enabling innovative business models to serve the urban and rural population. A water meter is a device used to measure the quantity of water consumed in a building, while a smart metering is a 3.4 SMART WATER MANAGEMENT TECHNOLOGIES measuring device that has the ability to store and transmit data consumption with frequency (Figure 3.2). Sometimes, the 3.4.1 SMART PIPE AND SENSOR NETWORKS smart metering is referred to as the "time of use in m3", because in addition to measuring the volume consumed, also According to Lin and Liu (2009) the prototype of the smart pipe records the date and time that the consumption occurs. is designed as a module unit with a monitoring capacity Therefore, while water meters are read monthly or twice a expandable for future available sensors. With several smart month and a water bill is generated from this manual reading, pipes installed in critic sections of a public water system, a real the smart metering can be read from a distance, and with time monitoring detects automatically the flow, the pressure, greater frequency, providing instant access to information on leaks in pipelines and water quality, without changing the the consumption of water for customers and managing entities operating conditions of the hydraulic circuit. of the water supply network. These smart water meters are a component of the Advanced Metering Infrastructure (AIM) that The individual sensors knots generally have four main parts: the water companies should choose to install (Alliance for Water data collection and processing unit, transmission unit, power Efficiency, 2010). management and sensors. The performance of each of these sections, in terms of power consumption and reliability greatly Briefly, the smart water metering offers essentially the affects the overall performance of the sensors and the opportunity to improve the balance between the provision of network. Figure 3.1 illustrates a general diagram of smart pipes access to drinking water, the right of a managing entity to be and wireless sensor network. payed for services rendered, as well as the joint responsibility of all to conserve the already scarce water resources (Boyle et al., 2013).

are easily accessible and can be dynamically configured so as to adapt to different workloads with the intention to optimize their use.

3.4.5 SUPERVISORY CONTROL AND DATA ACQUISITION – SCADA

In general, the majority of public water services have embarked on an online monitoring where the supervision, control and data management is done through the system, known as SCADA (Supervisory Control And Data Acquisition) (EPA, 2009). Figure 3.2 – Scheme of the smart water metering technology In this way, SCADA is a system that allows an operator in a (Alliance for Water Efficiency, 2010). central location in processes widely distributed will be able to make changes to the set point in distant process controllers, to 3.4.3 GEOGRAPHIC INFORMATION SYSTEM – GIS open or close the valves or switches, to monitor alarms, and gather information from measurement (Boyer, 2004). As regards the implementation of a Geographic Information System (GIS), it must be understood that this tool can be Up to date, the more detailed data about the current state of applied to various areas of study and, when applied to smart the water network in terms of flow, pressure and water quality water management technologies, allows us to have a clearer is collected using the SCADA systems located in reservoirs and idea of its evolution. The major advantage of a GIS is the water tanks. Generally, has very limited surveillance modulation of reality based on data and assumes a prominent capabilities, online analysis and limited implementation in role in today's society because they are information systems pipes and valves within the water distribution networks. designed to collect, styling, store, receive, share, manipulate, In short, the SCADA systems are used to control dispersed analyze and present information that is geographically assets acquisition of centralized database where it is just as referenced (Worboys & Duckham, 2004). important as the control. These systems of supervision, control The GIS plays a strong role in smart water management and for and management of data are used in various systems of the management entities, already provides a more complete distribution, such as the distribution of water and waste water list of the components of the distribution network and their systems, oil and gas pipelines, transmission concessionaire of spatial locations. With a sophisticated network communication electrical power and rail and other public transport systems. overlay on the water supply system, the data management with 3.4.6 MODELS, TOOLS OF OPTIMIZATION AND DECISION GIS becomes absolutely critical. SUPPORT Geographic Information Systems (GIS) allows incorporating the spatial component to a model object oriented, allowing an The implementation of a common framework for measuring improvement in the planning and management of systems of performance based on a set of relevant indicators and data public networks and facilitating a clear evolution of spatial applications and interfaces to support the decision of the models in the network. managing entities allows the interested parties to learn from each other, to create trust and confidence in the solutions and 3.4.4 CLOUD COMPUTING to monitor the progress (Airaksinen et al., 2015).

The concept of cloud computing refers to the use of memory The hydraulic network and water quality models represent the and storage capacities and calculation of computers and most effective and viable way to predict the behavior of the servers shared and linked through the Internet, by following water distribution system under a wide range of conditions of the principle of network computing. demand and system failures.

The storage of data is done in servers which can be accessed In the other hand, the models of operations in real time from anywhere in the world, at any time, without the need of optimization (real time operations-optimization models), installing programs or storage of data in other devices. Access expand the use of the smart water system in order to help to programs, services, and files is remote, via the Internet - operators to improve the efficiency of the water network and hence the allusion to the cloud. The use of this model is more ensure more reliable operations and maximizing cost savings. viable than the use of physical drives. The models automatically read the data in real time, instantly update the network model, show the characteristic parameters Furht and Escalante (2010) defines cloud computing as "a new of pump and treatment stations as well as the hours of style of computing in which the resources are dynamically operation that will produce the lowest operating costs, scalable and often virtualized being provided as a service over provided that they meet the objective requirements of the the internet" such as large repositories of virtualized resources, system (Boulos & Wiley, 2013). such as hardware, development platforms and software, which 4

3.5 ADVANTAGES OF THE SMART WATER MANAGEMENT make the devolved systems simpler to enable solving future problems (Hitachi, 2013). Some of the main advantages of smart water management are a better understanding and analysis of water system, detection 4 CASE STUDY – SMART WATER MANAGEMENT of leaks, conservation and monitoring of water quality. The implementation of the smart water system technologies allows 4.1 GENERAL CONTEXT public services companies to be able to build a complete database. In fact, having a detailed database also allows the Currently there are more and technological solutions capable identification of the areas where water losses occur, enabling of making the management of smart water and in this chapter public services companies to identify leaks and/or illegal it will be shown an example, worldwide, of the smart water connections. The advantages of the smart water grid are management, made by a Portuguese company EPAL – Empresa varied: from economic benefits, to water and energy Pública de Águas Livres (Public Water Company) – in the conservation, among others. In addition to the benefits listed Portuguese capital. In Lisbon, the company has focused the above, the efficiency of the system can improve customer world's attention, due to the high level of efficiency, service. The wireless data transmission allows the client to particularly in the reduction of water losses and consequently analyse his water use and potentially use water with a view of the reduction of operational costs. persevering this resource. In fact, the consumers who chose the In historical terms, the origin of EPAL was in 1868 with the electronic bill have reduced in a more significant and active way creation of the Companhia das Águas de Lisboa, CAL, the its water consumption, in some cases, as high as 30% concessionaire of water supply of the city of Lisbon during more (Martyusheva, 2014). than 100 years. Only on April 21, 1991, by the decree-law no. 3.6 HITACHI: A RENOWNED COMPANY IN THE MARKET 230/91, EPAL is transformed into an incorporated company of capital fully public, taking advantage of the flexibility of Throughout the world, specific measures are being taken to management required to implement the strategy of achieve a special type of city: the Smart City. In order to do so, development, going by the name of Empresa Portuguesa das there are numerous companies associated with this Águas Livres, S.A.. From 1993 is integrated in ADP Group – commitment, where Hitachi stands out among other large Águas de Portugal SGPS, SA., and currently it is a company of international companies such as IBM or Schneider-Electric. the State enterprise sector, 100% owned by ADP (EPAL, 2015).

In April 2010, Hitachi has created an entire division focused on The EPAL Company manages and operates a supply system that smart cities. The Division of Innovation Projects and Social integrates three subsystems: the Castelo de Bode, opened in Enterprise is based on experience and knowledge of the 1987 and currently has a daily production capacity of companies in the group Hitachi. These companies have been approximately 625,000 cubic meters, the Tejo, inaugurated in developing a wide range of social infrastructures, equipment 1940, with daily production capacity of 400,000 m3 and the and information systems for the cities over many years. The Alviela which is in operation since 1880 (EPAL, 2015), division aims to contribute to initiatives of a Smart City and represented in Figure 4.1. work with Japanese and foreign partners, developing and In terms of infrastructure, the water supply system in Lisbon promoting businesses related to the Smart Cities. Through comprises 2 Surface water extractions, 23 groundwater these companies, Hitachi helps cities to plan, implement and extractions, more than 700 miles of adductor pipelines, 28 develop systems that can operate efficiently solving current reservoirs, 31 pumping stations and 21 posts of chlorination, 7 problems. But, the visionary approach of Hitachi, is not only to associated with the treatment and 14 associated with the help make the cities more technologically advanced. The close strengthening of chlorination. technological solutions rarely satisfy all interested parties of a city, which include the city's administrators, residents, The chlorination posts are composed of 18 chlorine dosage companies, and those who manage it, meaning that the posts and 3 sodium hypochlorite dosage posts (EPAL, 2013). stakeholders of a city often have different goals and focus on different themes. The approach of Hitachi is to find solutions The water distribution network in the city of Lisbon is that provide the ideal balance between all these interested composed of approximately 1,400 km of pipelines, with more parties and specially to ensure the comfort and the than 100,000 connection branches, 14 reservoirs, which allows sustainability of society itself. Hitachi takes into account firstly to store more than 400,000 cubic meters and 10 pumping the economic characteristics, environmental and social issues stations (EPAL, 2014b). that the city faces and then helps to provide Smart cities solutions to help solve the specific issues of that city. The main objective is not only to solve the current problems, but also to 5

which is actually the consumption that is effectively authorized and billed. The non-revenue water includes not only the water losses, but also the volume consumed by the supplier or authorized agents, due to social commitments and the legitimate use of fire service. A simplifying schematic of this hydric balance in the supply system is presented in Figure 4.3.

Figure 4.3 – Hydric Balance, according to IWA.

The water losses at supply systems reflect a measure of the quality of management and operation of the system and consequently EPAL, as all the managing entities of water supply systems, strives to control and reduce the volume of water lost. Figure 4.1 – EPAL’s Supply network, (EPAL, 2013). As it can be seen in Figure 4.3, the water losses may be of two In the context of the market for the provision of water supply types, apparent or real. The apparent or economic losses services, according to the annual report for 2014, EPAL correspond to illegal or theft consumption, while the real or comprises an area of 7,095 km2, with 347,151 direct clients, 17 physical losses correspond to losses through leaks, ruptures or municipal clients and 3 multimunicipally clients, who represent, burst pipelines, reservoirs or service connections up to the as a whole, 35 municipalities (including Lisbon), involving more point of where the client connects to it. than 2.8 million clients (EPAL, 2014b). To emphasize that despite the increased monitoring and These values correspond to a volume of water sold higher than control associated with technological advances, it is not 192 million cubic meters, with the indicators of financial possible to calculate accurately through measurements the turnover and net profits for the period exceeding EUR 140 volumes associated with each of the categories described million and EUR 54 million, respectively (EPAL, 2014b). above. Therefore, when necessary, it turns to estimates or In spite of this, the non-revenue water was always a problem extrapolations from existing records. for EPAL, which during the 1990’s, the overall volume of non- Due to heavy losses in Lisbon’s distribution system in the revenue water has stabilized at around 50 million cubic meters, 1990s, which placed Lisbon far of the best cities in terms of non- with a strong predominance of the losses in the distribution revenue water, EPAL has set the ambitious goal of reducing the network, Figure 4.2. non-revenue water in Lisbon distribution network to sustainable values, setting a goal of water losses of less than 15% by 2009, Figure 4.4.

Figure 4.2 – Non-revenue water register by EPAL, (EPAL, 2014a).

According to the International Water Association, IWA, the volume of water in the distribution system, whether imported or extracted drinking water, is divided into billed water (BW) Figure 4.4 – More Efficient Cities in terms of non-revenue water in and non-revenue water and even between the authorized and the 1990’s. EPAL’s goal for 2009, (EPAL, 2014a). unauthorized consumption. In a simplified form it may be considered the billed water as the water charged to direct As it can be seen in Figure 4.4, the losses were stabilized at clients added to water that is exported to other water entities, about 25% of the collected water, and in order to reduce the 6 losses in a decade for values less than 15 %, EPAL adopted a of quantity and quality of information available on the network well-defined strategy that focused on: and its operation, the identification of consumers of each DMA and abnormal night consumption and the management and • Segmentation and continuous monitoring of the control of pressure in the distribution water network. network; • Development of analysis systems using internal The IWA recommends that an DMA should have between 1,000 resources; and 3,000 clients, but in urban areas with high population • Optimization of the process of active water losses control; density, such as the present case study, may group together • Continuous improvement based on the experience more than 3,000 clients, with a maximum limit of 5,000 clients. and results; This limitation relates only to the increased difficulty in the • Review process simple and effective given the identification and location of ruptures to DMA of higher complexity of distribution systems; dimension. • Focus on essential and real cost control. In relation to the water losses control, this strategy tries to In this context it may be subdivided if the DMA in relation to its reach the Economic Losses Level (ELL). The ELL is the objective size in three categories: small, with less than 1,000 clients, value of management entities, in an attempt to minimize the medium, between 1,000 and 3,000 clients, and large, with overall cost associated with the water lost in the system and more than 3,000 clients. These values are not universal and the activities carried out under the active water losses control, absolute, but have been tested and validated for the case of meaning, the maximum investment in an attempt to reduce Lisbon. In this case, the distribution network is divided into 152 water lost, that from which it is no longer economically viable, DMA as it is presented in Figure 4.6. because it is higher than the cost of water lost. In Figure 4.5 the concept of ELL in a simplified manner. In order to carry out the collecting, management and processing of the information of the water supply system of Lisbon, EPAL uses various registration systems and transmission of data, in particular data-Logging equipment. These devices enable the automatic collecting data water consumption, pressure, among other variables, through meters, flow measurement or probes (pressure sensors, pH or chlorine) directly installed on the network. The data collected are transmitted remotely, through such devices to a central database, where they are stored, offering to the managing entity scans and records more frequent and reliable, reducing the need for estimates.

In this context, EPAL has developed a system for the monitoring and water losses control based on the DMA and data collected

Figure 4.5 – Scheme on the Concept of Economic Losses Level, remotely, that allows you to combine processes and integrate (Sardinha, et al., 2015). the information relevant to the management of the network, the WONE - Water Optimization of Network Efficiency. In order to reduce the losses in the water distribution system, EPAL has to improve the monitoring and control of water losses The main objective of the WONE is to support the strategy of in the supply system of Lisbon since the 1990s. Thus, EPAL has EPAL in search of the optimization of the supply system, developed key tools for the deployment of a monitoring system focusing on efficiency and reduction of losses, providing that does not put in question the supply, in quantity and performance indicators of DMA. This software provides an quality: intuitive interface using internet, allowing multiple users at the • Geographical Information System (GIS); same time, besides it becomes possible to integrate other • Management Information System for Customers (MISC); management systems (GIS and MISC), aiming to the needs of • Digital Terrain Model (DTM); different areas of the management entity, and still allow the • Hydraulic System Model. statistical calculation, graphical presentation and alarms In addition, EPAL measures District Monitoring Areas (DMA), integration. Thus, WONE integrates perfectly in the process of being that the strategy of sectorization and monitoring of the optimization and improvement of the efficiency of the network is based on the total distribution of the network by distribution system deployed by EPAL, which is presented in sectors that can be analysed independently. The sectorization Figure 4.7. of the network makes it possible to obtain advantages in terms

reduce the losses in the system by 17 %, in 2004, to less than 10% of the total volume captured in 2014, Figure 4.8.

Figure 4.8 – Non-revenue Water evolution at EPAL.

As it can be seen in Figure 4.8, there was a decrease in the volume of non-revenue water in this decade, 45.7 Mm3 for 19.9 Mm3. This decrease was due mainly to the efforts of the EPAL logged to control the losses in the distribution system, because the losses in production and transport remained constant at approximately 5% of the volume of the collected water. On the other hand, the NRW in distribution system decreased by more than 30 Mm3, in 2004, to approximately 8 Mm3 in 2014. It is presented this significant evolution in water losses control in Figure 4.6 – District Monitoring Areas, DMA, Lisbon, (EPAL, 2013). the distribution system of EPAL in Figure 4.9, where it also stands out that approximately half of the volume of water produced is delivered to other management entities.

Figure 4.7 - Optimization and Efficiency improvement Process, (EPAL, 2014b). Figure 4.9 – Evolution of the hydric balance in EPAL’s supply system.

Finally, it should also highlight the effort of EPAL in As mentioned, the policy of monitoring and water losses implementation of flow meters indicated for each strategic control of EPAL has focused in particular on the distribution location on the network, such as for example the entry and exit system, for this have levels of NRW too high in comparison to of DMA, and the methodologies and innovative strategies for the system of production and transport. The strategy of EPAL the detection and localization of leaks, essential for the rapid has enabled the reduction of the levels NRW in Lisbon action and consequent reduction of water losses in the system. distribution network of 23.9 %, in 2004, to 8.1 %, in 2014, Figure 4.10. This decrease in the volume of NRW of 27 %, from 30 Mm3 4.2 RESULTS ANALYSIS to 8 Mm3, in 10 years, it is even more significant considering the significant reduction in the total consumption. The analysis of this case study will be carried out based on the results obtained by EPAL in the last decade, by considering this time interval the most relevant for assessing the effects of the measures implemented in the distribution system.

The implementation of the monitoring measures and active water losses control in Lisbon’s supply system, allowed EPAL to

gains associated with the energy optimization enabled by monitoring and water losses control. In 7 years EPAL obtained an energy saving of approximately 57 GWh, reducing the energy bill by more than EUR 5 million. In addition to the energy reduction, another more direct result and representative of the policy of monitoring and water losses control, was the reduction of the levels of NRW in the network, which allowed a saving, in 7 years, about 100 Mm3, or EUR 50 million.

These results demonstrate the improvement of the efficiency Figure 4.10 – Results of the policy of active water losses control in the distribution system of EPAL. of the exploration of the supply network of Lisbon, with a savings of more than EUR 55 million in just 7 years. For this, it As previously mentioned, EPAL defined at the end of the 1990s was necessary to invest in the sustainability of the distribution the ambitious goal of reducing the non-revenue water in Lisbon network and in new technologies of information and distribution network for sustainable values, setting a goal of communication. In total, EPAL has invested approximately EUR water losses of less than 15% by 2009. As it can be seen in 18 million in 10 years, approximately 5% of the total investment Figure 4.10, this objective has been achieved, and at this in this period, to reach these levels of efficiency, Figure 4.13. moment the management of the distribution system of Lisbon positions the EPAL in elite group of more efficient management entities worldwide, Figure 4.11.

Figure 4.11 – More efficient Cities at non-revenue water level in Figure 4.13 – Investment in water losses control and their financial 2014, (Sardinha, et al., 2015). accumulated gains.

Associated with the efficiency gains, EPAL had still a decrease As it can be seen conclude by looking at Figure 4.13, the in operating costs of supply network, shown in Figure 4.12. investment made in monitoring and water losses control Despite the reduction of these costs, the unit cost of water obtained a recovery of investment in short term, allowing produced was not sensitive to this variation and remained close further reduction in the overall costs in the operation of the to the €0.30/L. This is mainly due to fixed costs of supply network, offering a saving of about EUR 37 million in 10 years network, the decrease in demand and an increase in this of operation. decade of unit costs of External Supplies and Services (ESF), in But the investment is not linearly related with the financial particular the electricity. gains and EPAL defines the needs of investment through the systematic calculation of the ELL, noting that the levels of actual losses in Lisbon network reached at this moment this value. As such, and recalling that the ELL is the objective value of management entities, in an attempt to minimize the overall costs associated with the water losses in the system and the activities carried out under the active water losses control, meaning that the maximum investment in an attempt to reduce the water losses, that from which is no longer economically viable, because it is higher than the cost of water lost, is not justified at this present time, a financial effort. It Figure 4.12 – Operational Costs and unitary cost of produced water. should be noted, that this situation can be changed at any time, Still the energy bill, which is the main constituent of the ESF, due to this value is sensitive to situations such as network contradicted the trend of growth in the market, due to the changes, legislation, consumptions, personnel and ESF costs as well as the macroeconomic situation of the country. 9

Thus, the supply network has evolved into an economic, possible, for reasons associated with the topography of the financial and environmental situation more sustainable, which land. is an objective that EPAL is proposed to achieve, and that all other entities are looking for in the context of smart cities. At the moment, the distribution network of the city of Porto is divided into 18 DMA. The company has opted for the 5 CORROLATION MODEL FOR ÁGUAS DO PORTO sectorization of the distribution network through the creation of interior sub-DMA so that it is possible to carry out a more 5.1 GENERAL CONTEXT effective monitoring and consumption control. Proof of this is the fact that, in addition to the already existing 18 large DMA, The Águas do Porto of Porto’s City, Municipal Company, derives the water distribution network of Porto City is subdivided into from the Municipal Services of Water and Sanitation of Porto 31 interior shut down sub-DMA. (MSWSP), founded in April 1927. Currently, it has the granting of water distribution and drainage of wastewater in the 5.2 CORROLATION MODEL municipality of Porto. It has a total of about 150,812 clients. The system of water distribution to the city, Figure 5.1, is Considering the results obtained by EPAL in the optimization of composed of 6 reservoirs - Bonfim, Carvalhido, Congregados, distribution network through the improvement of monitoring Nova Sintra, Pasteleira e Santo Isidro - which corresponds to a and control of losses, it was estimated that the investment total storage capacity of 125,450 m³, by a network of required in order to be possible to obtain an equivalent level of distribution pipes with 718 km in length and by a set of performance in the system of water supply from Porto’s City, adductor pipelines whose length is 42 km. The distribution meaning for losses in the distribution network less than 10% by network has approximately 64,000 domiciliary service 2025, as previously set above. Therefore, the main connections and the water distributed has origin at the characteristics of the current system of distribution of Porto’s collecting point of Águas do Douro e Paiva, S. A., and is supplied City were assessed, Table 5.1. to the city of Porto by 12 points of delivery for the system at Table 5.1 – Main characteristics of Águas do Porto distribution low point (distribution network), which are distributed along system, (Águas do Porto, 2014). the two main adductors’ axis, a North along the Circunvalação 3 road and another to the South, which supplies the Reservoir of Total Annual Volume (m ) 20 332 815 Nova Sintra. BW (m3) 15 962 429 (m3) 4 370 386 NRW (%) 21,5% Total Clients - 150 812

As we can see in Table 5.1, the NRW in Águas do Porto Company in the year of 2014 stood at 21.5 %, with more than 4 Mm3 non-revenue water, this amount being equivalent to that which EPAL (Public Water Company in Lisbon) had in 2004, but higher in comparison with the level that EPAL managed to achieve in 2014. The level of NRW was the main factor of a discriminant analysis that allowed determining the Águas do Figure 5.1 – System of adduction and distribution of supply network Porto as the indicated entity to apply the correlation model. of Porto City (Águas do Porto, 2015). The other factors that were also mostly favourable were the initial level of implementation of DMA, the similar water Through the success of the Project Porto Gravítico (2006-2012), consumption diagram of Oporto and Lisbon and the equivalent it was feasible to make the gravitational supply almost on the level of environmental awareness of both cities in terms of whole, through restructuring the distribution network, in order energy and water management. to extinguish the service of four pumping stations (Bonfim, Nova Sintra, Pasteleira and Santo Isidro) of the municipal Thus, it was considered that the development of EPAL suffered system, maintaining currently active only the pumping station between 2004 and 2014, at the expense of the investment of Congregados, to fill the area of higher quota city - DMA made in monitoring and water losses control, could be Congregados Superior - whose gravitational supply is not transposed to the distribution system of Porto’s City using the method described in the flowchart in Figure 5.2.

Figure 5.2 - Flowchart of the correlation model.

As can be seen in Figure 5.2, the EPAL data was used to estimate the major socio-economic indicators for determining the investment required to reach a certain NRW level.

A statistically analysis to key indicators of the EPAL results for the correlation model were made, in order to determine the annual growth rates of the number of clients and billed water,

BILLED WATER and the Investment in water losses control per reduced volume of NRW and per client. Note that the determination of those ANNUAL GROWTH RATE OF parameters per client are essential to correlate different size water management companies, since they may have different ANNUAL GROWTH RATE OF NUMBER OF CLIENTS sizes but usually proportional to the number of clients. Figure 5.3 – Correlation between the annual growth rate of billed The annual growth rate of the number of clients was obtained water and number of clients. through the average annual growth recorded by EPAL from 2004 to 2014, as the mean squared error (MSE) determined Thus, it was evaluated the possibility of BW present a growth from different types of regressions did not present acceptable that could be represented by a linear regression, polynomial or values to be considered a reliable indicator to the progress of logarithmic. The reduced value of MSE not allow it to take some of these regressions as a parameter of the correlation model, this parameter. Since so it was adopted an annual growth rate and taking this into account it was adopted the average growth of 0.3% for this correlation model. rate of BW, -0.3%. Note that it was determined that these In order to determine the billed water progression it was first variables are independent, making from the outset the demand made a canonical correlation taking into account the evolution a multivariate model, in terms of number of customers and BW. The search model has allowed determining the evolution of the of the number of clients in the distribution system on an number of customers and volume of BW at Porto supply attempt to assess the dependence of billed water with the system. number of clients. Finally, it was analysed the correlation between the annual As seen in Figure 5.3, there is no correlation between the investment per client effected by EPAL in the study decade with annual growth in the number of clients and the BW on the the decrease of NRW by client of the following year. It was results of EPAL, verifying that these are independent considered with this analysis that the investment made in a parameters. year on water losses control would only return results in the following year. This analysis would be able to determine a logistic regression for the investment required per client to achieve a certain level of NRW, but the MSE values were not considered acceptable to determine investment by this means.

In this way it was determined the investment parameter's in Table 5.2 – Estimate on the evolution of the main features in Águas the water losses control per volume of NRW reduced and per do Porto, based on EPAL. client with the average value of annual investment by reduction Águas do Porto EPAL of NRW of the following year and per client by the following Main features equation: 2015 2025 2004 2014 Total Annual 푛 퐼푁푉푖 (Mm3) 20,3 17,3 127,0 101,0 ∑푖=1 ⁄ Volume 푁푅푊푖+1 (1) 퐼푁푉̅̅̅̅̅̅푁푅푊̅̅̅̅ = 푛 BW (Mm3) 16,0 15,5 96,6 92,8

3 that, (Mm ) 4,4 1,7 30,4 8,2 NRW (%) 21,5% 10,0% 23,9% 8,1% 퐼푁푉̅̅̅̅̅푁푅푊̅̅̅̅̅ – Annual investment average on water losses Total Clients - 150 812 155 293 339 111 349 151 control by decrease of NRW and by client;

퐼푁푉푖 – Investment on the water losses by client in the year i; In Figure 5.4 and Figure 5.5 are represented some results obtained graphically, allowing an immediate evaluation 푁푅푊푖+1 – Non-Revenue Water per client of the year i + 1. of the evolution of NRW level in the Porto distribution The value obtained for the Investment parameter on the water network and the required annual investment. In Figure losses control by volume of NRW reduced and per client was 5.4 is presented the investment plan and the variation of 3.6 € / m3 / client / year. NRW level for the next 10 years, while the figure 5.5 With the parameters of the correlation model obtained was represents the evolution of the water volumes associated even necessary to determine the volume corresponding to the to NRW and BW in Porto distribution network. NRW goal level in 2025. From the BW and the NRW level intended is possible to determine the volume of NRW and water in the system for the year 2025, but to evaluate annually the evolution of the system was assumed that the AP would make an investment that allow a reduction in the volume of NRW, constant until 2025. With the determination of the evolution of the distribution network of Porto city, and as can be seen in flowchart that appears in Figure 5.2, it were determined all the parameters required to make the determination of annual investment in the water losses control needed to reach the NRW goal of 10% until 2025. Figure 5.4 – Investment in water losses control and the corresponding evolution of the NRW to Águas do Porto Company. 5.3 RESULTS ANALYSIS

After the determination of the correlation model indicators, it was possible to relate the decrease of NRW per year with the annual investment in the water losses control required in the previous year, obtaining the investment plan and the evolution of the distribution network features the next 10 years.

The total investment required in the AP, obtained through the correlation model considering the indicators previously determined was approximately 9.5 M € for the next decade, Figure 5.5– Evolution of losses in the Distribution system of Águas allowing a reduction of more than 2.6 Mm3 of NRW in 10 years. do Porto Company. Are set forth in table 5.2 the main values obtained from the correlation model, where highlights the level of NRW losses and the total investment.

6 CONCLUSIONS AND RECOMMENDATIONS NEP. Thus, there is no need for additional effort in this area, focusing on the EPAL stabilization of pressures and control of 6.1 CONCLUSIONS transitional arrangements, with the aim of continuous improvement of the operation of the system of distribution. It In this present research, it is concluded that the technology should be noted, that the calculation of the Economic Losses itself does not make a city a smart city, since it is necessary to Level (ELL) is systematic and being sensitive to situations such create a proper system to each city and efficient use of as network changes, legislation, consumptions, personnel costs innovative technologies associated with a worldwide and External Supplies and Services (ESF) and, of course, the awareness of the society in relation to the sustainable macroeconomic situation of the country, may at any time management and use of available resources. Through the return to be an economically viable investment in water losses technological innovations, the smart cities can reduce costs, control. increase quality and optimize different characteristic Finally, in relation to the excellent results obtained by EPAL, it parameters. was estimated the investment necessary to achieve the goal of The water sector presents significant challenges, in particular water losses inferior to 10% by 2025, in the distribution the effort to develop a smart water system, which translates to network of Porto Water Company. Despite the clear a better control and monitoring of the network in order to differences in terms of the topography and the size of the improve the efficiency of the system. According to the Global distribution systems, these systems had similarities that allow Water Technologies (2013), the public water services need new a correlation of the results obtained by EPAL, specially taking technologies to monitor our systems - providing real time into account that the level of losses of EPAL in 2004 (23.9 %) measurement of water consumption and warnings when the was comparable to Porto Water Company (21.5 %) in the conditions become critical. present. It was taken into account the fact that in 2004 EPAL, as the Porto Water Company at the moment, had already The potential benefits of a smart water management include started the implementation of measures for the monitoring the improvement of the water losses management, monitoring and water losses control. With these assumptions, it was of water quality, better management of droughts, and energy considered that it would be more accurate the correlation of savings. Thus, the smart water management in the cities is a the results obtained by EPAL for the distribution system of great way for the conservation, efficiency, and security Porto City in relation to the analysis of historical data of Porto objectives to be achieved, once that Ervideira refers (2014) Water City to estimate the evolution of this system. "The non-revenue water translates annually in millions of euros, translated into work expenses, chemicals and non- In this sense it is estimated that a total investment of around recoverable energy ". EUR 9.5 million until 2025 would be sufficient to reduce the losses in the distribution system of Porto City to 10 %, placing In this case study it was analysed the results achieved by EPAL the city at the level of the most efficient in the world. during the implementation of the measures for the monitoring and water losses control in the distribution network of Lisbon. 6.2 RECOMMENDATIONS FOR FUTURE DEVELOPMENTS The results obtained allowed to assess the high level of efficiency achieved, in particular the reduction of water losses As a result of this work appeared some aspects that proved and consequent reduction of costs, and associate it to the interesting for a more detailed approach. As the very investment made during the last decade. philosophy of sustainable management presupposes, it should be continuously investigated points to be improved in the This analysis allowed us to evaluate the efficiency gains and process of looking for more efficient systems. In this sense, it is savings in water that EPAL has achieved through the measures recommended to perform a detailed analysis on the DMA for that aim to optimize energy efficiency and reduce water losses. different cities. The DMA, as stated, may have quite varied Not only the levels of non-revenue water reached values in the characteristics, since geographical dimension, number of category of more efficient cities in the world, as the profits of clients, topography and infrastructure. Thus, increasing the the company have been presenting historical highs. level of detail in the investigation of quality of service, losses, Thus, it should be emphasized that the investment of EUR 18 investments and operating results, will allow an observation of million of EPAL policy on monitoring and water losses control direct results of investments made in each DMA. The creation allowed the saving of approximately 57 GWh and 100 Mm3, of a database of results of DMA will allow the creation of corresponding to an overall saving of more than EUR 37 million models of correlation at the level of DMA, instead of the in just 10 years. distribution system, allowing a financial analysis more accurate and up to the level of infrastructure investment, maintenance Of further note, that at this moment the EPAL has reached the and operation of the network. maximum value from which is no longer economically viable investment in water losses control, which is higher than the At this point it is also important to point out the importance of cost associated with the lost water, meaning that it reached the the use of equipment and technological systems in innovative exploitation of water distribution network, as key tools for a 13 smart water management, in particular smart pipes, sensor networks, smart meters, cloud computing, SCADA, geographical information systems and models of optimization and decision support. All such equipment and systems referred to will allow the collection, integration and processing of data in real time and on a continuous basis, which enables an efficient management in control and monitoring of water losses and leaks, in control of obstructions to flow in conducts and a more effective maintenance of infrastructure network by preventing the degradation and premature aging of the same.

Finally, as is the case in the city of Lisbon, other cities should proceed with the integration and development of policies in the maturation of the water use, in particular the energy saving and recycling of water and awareness of the increasingly limitation this resource faces. This maturation of society is essential for the successful implementation of a smart water management.

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