SWAN. The Value of Online Water Network Monitoring SUMMARY

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1 SWAN S m a r t W a t e r N e t w o r k s F o r u m The Value of Online Water Network Monitoring SUMMARY Online water monitoring is the use of data transmitted from network elements, meters and sensors for gaining operational knowledge and insight. Faced with challenges such as reducing water loss, energy consumption and carbon footprint, water networks of different sizes and geographies may realize slightly different benefits, but all are likely to benefit from online water monitoring. Supported by the Smart Water Networks Forum, TaKaDu and Hydrospin have conducted a joint research to examine the perceived and proven value of frequent online water monitoring. Based on a survey conducted among water utilities worldwide, the research outlines the current state of monitoring in different water utilities and the common perception of real-time online water monitoring. The research highlights the value components of water monitoring and key benefits of online monitoring, including water and energy savings, increased network visibility, prevention of damages and early detection of network issues. This paper also includes general formulas and sample calculations of the monetary value of several of the benefits described. It is shown that the benefits of network monitoring and the resulting monetary gains and savings can be exponentially increased when collection and transmission frequencies increase. Looking into the future, the survey results indicate a high likelihood of real-time online water monitoring becoming increasingly popular, en route to being an integral element of water networks. SWAN January 2012

2 INTRODUCTION Online Water Monitoring, sometimes referred to as Real-Time Monitoring, is defined for the purpose of this paper as the collection and analysis of data which is transmitted from sensors in the water network to a central system. Online water monitoring integrates the transmission and analysis of data from sensors and loggers to central network locations. The data is utilized for identifying, characterizing and alerting on evolving conditions and trends, detecting water quality and supply problems, and preventing or responding to network emergencies and inefficiencies. There are hundreds of thousands of water utilities worldwide. While some of them use telemetry for data collection, only a small proportion uses online water monitoring solutions, and it is very common for utilities to analyze the data manually. An underlying assumption for this paper is that most if not all utilities would benefit from better visibility of their networks. Improved monitoring of water distribution networks enables utilities to reduce losses of water and energy, gain operational efficiency 1, optimize supply, and enhance network planning. Many utilities have identified the need for optimal asset replacement, timely pipe repair, adequate pressure management, effective preventative maintenance, pump optimization and reservoir adjustment. However, the implementation of such approaches and technologies is, more often than not, sub-optimal. Inadequate monitoring of water networks may result in reduced ability to control water and energy losses. This has become one of the acute challenges of our time. Similarly to other industries, the water industry should be capable of improving access to valuable network data and insights that allow better management of water resources, financial viability, and water quality. When improperly monitored, water network damages and deterioration have an insidious characteristic, wherein network failures or quality issues are discovered too late or perhaps even not discovered at all. Despite living in a time of instant access to media and information, many water utilities are burdened by delayed access to information that, if known earlier, could have saved resources and minimized damages. The need to monitor water networks in real-time with online data transmission and real-time analysis is therefore becoming a higher priority for regulators and private utility companies alike. Players in this field are constantly working to improve systems that lack the ability to gather raw data, analyze it and, provide information in an accurate and efficient way. As water scarcity becomes a more severe threat worldwide, the need for network visibility drives market growth for online water monitoring. It has been reported that water utilities are increasingly using data collection systems for real-time monitoring 2 and that the share of smart water grids is growing, compared to that of conventional water grids. According to Frost & Sullivan, the global smart water grid market is forecasted to grow at a CAGR of 14.4% by 2020, a relatively high market growth in the traditional water industry 3. This paper focuses on identifying and quantifying the value of frequent online water monitoring for water utility companies. It outlines current situations that often lack frequent monitoring and automatic data analysis, the components of savings due to constant network visibility, calculations estimating the value of visibility, and solutions that can improve network visibility. SWAN January

3 CURRENT REALITY A joint survey supported by the Smart Water Networks Forum was conducted with the assistance of TaKaDu and HydroSpin. The survey, with contributions by leading water utilities worldwide during November-December 2011, reveals the following: 78.9% of the utilities participating in the survey use online monitoring. This demonstrates a trend of implementing more online monitoring technologies by water utilities. Nevertheless, we believe the global figures would be much lower, as utilities not using online monitoring were less likely to participate in this survey. 68.4% utilize manual data visualization and analysis (i.e. processes that are not automated), while 10.5% do not perform network data analysis on a regular basis. The rest use tools that are automated to some extent. Many water utilities use more than one tool for network data analysis. About two thirds of the surveyed utilities use fixed threshold alerts for their network data analysis; 52.6% use hydraulic model analysis; and 36.8% use night line analysis tools; only 10.5% are already using a fully automated network analysis system. 36.8% of respondents reported that data is transmitted from the majority of sensors deployed in their water mains to a central location in an average frequency of at least once every 10 minutes; 26.3% cited an average frequency of once an hour; 21.0% reported transmissions 1-3 times a day and 15.8% indicated that data is transmitted once every day. "Real-time online monitoring is already happing, just not in a smart way" Project Manager, European Water utility serving more than 2 million customers "With operational costs being targeted by the regulators with massive efficiency challenges, anything that provides data that facilitates early intervention, before it become catastrophic, is vital." Senior Engineer, Water utility managing a network of more than 10,000km Batteries are the key energy source for data loggers used by 68% of utilities. The value of real-time online monitoring as perceived by respondents is very high with an average rating of 9 on a scale of The cost associated with the depletion of sensors battery power, as a result of frequent transmissions, is the main limiting factor for higher frequency of data transmissions. SWAN January

4 THE BENEFITS OF ONLINE WATER NETWORK MONITORING Monitoring networks bears the potential to make networks more efficient while reducing water loss, maintenance costs and repair costs. Monitoring can be a contributor to increasing water availability and quality. By having reliable and consistent visibility onto water distribution networks and handling network issues early, water utilities can reduce their water loss and their total expenditure on water production and delivery. Some of the main benefits of monitoring water distribution networks are: Water savings Energy savings Operational network visibility Damage prevention or reduction Early detection of network inefficiencies and quality issues Understanding the value of water network monitoring, some utilities are already using central systems that receive data from various remote sensors deployed along the network. Current telemetry and monitoring solutions improve network visibility to some extent but usually require extensive manual work and are limited by the frequency of data transmission from sensors to central locations. With frequent transmission of data, monitoring becomes more effective since response to network issues can be more immediate. So why don t utilities use more frequent data? According to TaKaDu and HydroSpin s survey, which was conducted among various water utilities in October-December 2011, the cost associated with more frequent data transmissions is the main confining factor. More frequent transmissions deplete the lifespan of the sensor's power source hence requiring frequent replacements, which lead to increased costs for the utilities. Another important factor is the higher communication costs as a result of more frequent transmissions. Although not always applicable (due to the increased costs mentioned earlier), water utilities see significant value in frequent data transmissions. As can be seen in Figure 1, when asked how valuable they expect real-time online monitoring (defined as data transmission at least every 15 minutes ) to be for their water utility, 84% of the survey respondents rated it as important (ratings of 8, 9 or 10, on a 1-10 scale). F i g u r e 1 Perceived value of real-time online monitoring 50% 40% 30% 20% 10% 0% Very high value No value Source: SWAN Forum, Benefits of Online Monitoring Survey SWAN January

5 By increasing the frequency of data transmissions, utilities can enhance their network visibility and increase their savings. Figure 2 demonstrates the main benefits of using more frequent data transmissions, as perceived by water utilities participating in our recent survey. F i g u r e 2 The main benefits of using more frequent data transmissions Improved quality of service for our customers Reduced energy expenses Reduced OPE from find & fix Reduced number of bursts Reduced leakage Early detection of water contamination Early detection of network failures Higher compliance with regulatory targets Better network management Better network visibility Source: SWAN Forum, Benefits of Online Monitoring Survey 0% 20% 40% 60% 80% In this paper, we will demonstrate how high frequency of data transmissions can increase the value of water network monitoring. 1. Water Savings A huge amount of drinking water is lost every year on its way to consumers. According to the World Bank, more than 32 billion cubic meters of treated water are lost annually through leakage from distribution networks 4. Some leaks are ongoing and are not detected for months or even years leading to continuous water loss. According to the American Water Works Association, most non-visible underground leaks are estimated to have an average life span of 2 or more years 5. Leaks lifetime can be reduced dramatically with constant monitoring. By monitoring water networks on a regular basis, utilities identify leaks earlier, before they are visible, and can treat them immediately to reduce water loss. The total amount of wasted water is reduced significantly as a result of infrastructure SWAN January

6 monitoring. The potential for early detection depends on the frequency of data used by the monitoring system. The more frequent data transmissions are, the earlier leaks can be detected. In general, the value of water savings due to monitoring can be calculated in the following way: Annual Water Savings (l) = Average Leak Magnitude (l/s) Early Detection (days/hour converted to seconds) Average no. of Leaks along the Network per Year 2. Energy Savings Energy is required in most stages of water production and distribution. Key processes in the value chain of water, such as pumping, water treatment and transportation, consume a lot of energy, not to mention water desalination, which is a growing share out of the total drinking water worldwide. According to IWA, energy is the second highest operating cost (after manpower) for most water companies 6, often representing 25-30% of the utility's total operation and maintenance costs 7. Although energy prices have climbed during the last decade, energy consumption by the water sector has risen6 and is forecast to keep rising in the future 8. Being a substantial component of water utilities operational expenses, reducing energy consumption can provide great value for utilities. Attempting to cut operation costs, utilities should consider the benefits of water network monitoring in terms of energy savings. Monitoring water networks can reduce utilities energy consumption significantly. A smaller amount of water is lost through leakage and therefore less water has to be produced, treated and transported processes that consume a lot of energy. For water utilities in areas with geographical height differences, the energy savings by network monitoring is double, as transportation of water to high areas requires a lot of energy. In such cases, even if water is not lost, but only breaches from a high area to a lower area, the impact in terms of energy waste is fundamental. Inefficiencies of this kind can go on for a while, using costly energy to pump water that after getting to the top, will flow downstream again to repeat the cycle. Such issues, when discovered by a monitoring system, can have high impact on utilities energy savings. The earlier the inefficiency is discovered, the more energy is saved. The value of energy savings as a result of water savings depends on the level of early leak detection through monitoring, calculated in the following way: Annual Energy Savings (kwh) = Annual water loss (l)* Energy invested in water production, treatment and transportation (kwh/l) * As calculated in the Annual water savings formula. The value of energy savings due to height differences in the network depends on both the height differences and on the amount of water that would have been pumped in vain to the higher parts of the network if there were no monitoring systems in place. SWAN January

7 3. Operational Network Visibility Utilities spend significant amounts of money purchasing, installing and maintaining sensors along water networks. The rationale behind this expenditure is that sensors provide utilities with network visibility, which is essential for the ongoing operation and management of the network. The more sensors there are, the higher the visibility into the water networks is. The value gained by utilities that have high visibility of their networks is unique in many cases, meters and sensors are the only permanent means for understanding network behavior. Water network monitoring enables early detection of faulty sensors. This allows for immediate action and quick return to normal network visibility, while the lack of monitoring systems may lead to misleading information and warrant incorrect responses accordingly. As mentioned earlier, sensor data has a significant value for water utilities. Every day, hour or minute in which a meter is not working (or not sending accurate data), can be translated into losses. A conservative way of calculating the value of one sensor s data per hour would take into account the cost of one sensor (including installation) and its average life expectancy: Value of one sensor data per hour ($) = Sensor s cost + cost of installation ($) Sensor s average life expectancy (hours) Similarly, a conservative approach for calculating the value of improved visibility by early detection of faulty sensors alone may consider the following: Annual savings due to early detection of faulty sensors ($) = Value of data per sensor per hour ($/hour) Early Detection (hours) Average no. of faulty sensors per year A more detailed calculation would also consider the cost of maintenance, periodical battery changes, transmissions costs etc. In order to keep the calculation simple, our calculation includes just the upfront costs. 4. Prevention or Reduction of Damages We often hear about burst water mains causing enormous damage to property, flooding streets etc. In addition to the high cost of repairing the direct and collateral damages of such bursts, closing roads and streets leading to residents inconvenience and involving insurance companies, a large burst can have grave implications on a utility perception and reputation. In some countries, water utilities are fined for interruptions and interferences caused by bursts and other malfunctions. By using a monitoring system, utilities can prevent some of the bursts by finding them earlier, as they occur or even before they develop into bursts. Some bursts start as small leaks, growing gradually until they pop. Finding these leaks and repairing them when still small can prevent a significant number of bursts. Other bursts are sudden. In such cases, an online monitoring system can identify the burst and help locate SWAN January

8 it before it becomes visible (water rising above the ground) if the system receives frequent data from the available sensors. Savings from prevention of bursts that start as leaks can be calculated in the following way: Annual savings due to burst damage prevention ($) = No. of bursts per year Proportion of bursts that start as leaks (%) Avg. cost per repair of burst damages ($) Savings resulting from early detection of bursts, which is mainly relevant when frequent data is available, can be calculated in the following way: Annual savings due early detection of bursts ($) = No. of sudden bursts per year Avg. cost per hour of burst ($/hours) Early Detection (hours) 5. Additional Benefits In addition to the measurable advantages listed above, the monitoring of water networks had various additional benefits more difficult to quantify. Soft components such as better publicity as a result of reduced water loss and less frequent bursts and water outages, provide an important advantage to water utilities. Other factors influenced by the efficiency and frequency of online monitoring include staff efficiency and better customer service. Avoiding water contamination or its early detection due to constant monitoring of water quality is another important benefit. Frequent data transmissions and analysis may prevent an extensive contamination of water. Moreover, frequent or continuous water network monitoring involves savings related to insurance premium and regulator fees (that depend on factors such as mains breaks, damages, water loss, pressure levels etc.). Although not always quantifiable, it is clear that these components influence utilities market position and finances in a positive way. SWAN January

9 Measuring the Benefits - Examples for Selected Savings Calculation Assumptions: 1) Network length - 1,000 km All following figures are estimations for a network length of 1,000 km. 2) Early detection is a derivative of data transmission frequency, when Average Early Detection = 1/2 Data Transmission Frequency (every hours) ( ) The assumed basis point (P 0 = current situation) is an optimistic scenario of data transmission every 24 hours with immediate data analysis and action. The savings through more frequent data transmissions are calculated in comparison with a once a day frequency. Actual savings, therefore, may be much higher, considering that some water utilities do not make an optimal use of data every 24 hours. 24 Using the figures above, the calculation results for a network of 1,000 km are presented below: Measuring the Benefits - Examples for Selected Savings Calculation Annual savings reduction in losses (Assuming a 1,000 km network) Every 24 hours, current losses Data transmission frequency Every 6 hours Every 1 hour Every 10 min Water (l) P 0 =(75,000) 56,250 71,875 74,479 Total water savings in $ ($0.6/m^3) P 0 =(45,000) 33,750 43,125 44,688 Energy (kwh) P 0 =(150,000) 112, , ,958 Total energy savings in $ ($0.12/kWh) Early detection of bursts ($) P 0 =(18,000) 13,500 17,250 17,785 P 0 =(45,000) n/a 37,500 43,750 Total ($) P 0 =(108,000) 47,250 97, ,313 Estimated figures used for calculation: Water Savings: Average leak magnitude 0.5 ML/day Average number of leaks along the network per year 300 leaks/1,000 km mains Cost of water $0.6/ m^3 Energy Savings: Energy invested in water production, treatment and transportation 2 kwh/ m^3 Cost of energy $0.12/ kwh Early Detection of Bursts: Number of sudden bursts per year 30 bursts Average cost per hour of burst $500/hour As is depicted in the above conservative example including calculations for a small network of 1,000 km, having more frequent data transmission can significantly reduce operating costs. Savings are much higher for many water utilities which manage water distribution networks of more than 1,000 km. Based on the average network size of utilities participating in our survey, most of them can save hundreds of thousands USD per year by using frequent data transmissions properly. In the bottom line, the more frequent transmissions are, the more savings may be achieved. SWAN January

10 CONCLUSION "Real-time online monitoring is much like mobile phones are to us now: once a product only for the wealthy and hip soon to be an essential tool for everything we do" Senior Engineer, European water utility serving more than 1 million customers "The future is realtime monitoring in the whole network" Manager, South American water utility managing a network of less than 5,000km The benefits of online water network monitoring are various and extensive. As discussed in this paper, the issue of water monitoring is a time sensitive topic in which access to certain information in a given time frame can drastically determine the fate of a water network. From water saving to sensor data, the benefits and monetary value of network monitoring can be increased by more than an order of magnitude when used frequently i.e. using real-time online monitoring. The combination of efficient online monitoring systems together with frequent data transmissions from sensors along the network provide water utilities with real-time visibility of their networks, allowing increased savings and operation efficiency. Various technologies and services that promote and enable the success of real-time water network monitoring are already available. Examples for such technologies include TaKaDu s Software-asa-Service online water infrastructure monitoring system and HydroSpins efficient generator which enables continuous data transmissions from devices along the network. Implemented appropriately together, these technologies can provide utilities with the above benefits, reducing unnecessary costs and increasing savings. With more solutions available and clear benefits of real-time online monitoring, it is just a matter of time until water utilities adopt this approach and enhance network visibility and efficiency. Similar to other network types, such as electricity and telecom infrastructure, opinion leaders agree that the water utilities market is moving towards better-monitored networks. According to TaKaDu and HydroSpin s survey results, water utilities personnel believe that implementation of real-time online monitoring systems will become more common in the next 2-5 years, and in the long term, will be an integral element of water networks. SWAN January

11 SWAN S m a r t W a t e r N e t w o r k s F o r u m About the Smart Water Networks Forum SWAN - The Smart Water Networks Forum - is a worldwide industry forum promoting the use of data technologies in water networks, making them smarter, more efficient and more sustainable. SWAN brings industry leaders together to promote awareness, effectiveness, and use of smart data systems for water networks. The SWAN forum encourages targeted, technical discussion to raise awareness for smart water networks, create and report upon the methodologies, standard performance indicators, and industry best practices, develop new approaches and solutions to improve network operations, share members experience, case studies and research, promote interoperability, synergy and common measurements. About HydroSpin HydroSpin supplies Smart Power solutions for the Smart Water network and supplies a unique power solution that generates micro-energy from the flow of water inside distribution pipes. The HydroSpin solution powers sensors and transmission devices across the water network and is able to supply sufficient energy to allow online transmission every 5 minutes in the water network, even over GPRS and thus improving the reliability of the water networks and of the data harvesting from the network. HydroSpin was selected as one of the 5 most promising CleanTech companies in Israel for 2011 by the largest financial magazine in Israel and is backed by Kinrot Ventures, the largest waterrelated seed investor in the world. About TaKaDu TaKaDu provides an online Water Network Monitoring solution for water utilities. The TaKaDu Monitor is a Softwareas-a-Service solution which detects, classifies, alerts and provides real-time insight on leaks, bursts, network breaches, faulty meters and other inefficiencies. The TaKaDu Monitor uses complex algorithms which analyze online data from existing meters within the network (flow, pressure, etc.) in conjunction with external data (weather, holidays, etc.). TaKaDu s patented technology is easy to deploy, requiring no network changes, no additional devices and no capital expenditure. The service is in commercial use by leading water utilities worldwide. The TaKaDu team is comprised of top-notch scientists with vast data analytics experience, alongside seasoned executives from global software leaders. TaKaDu is the winner of many industry awards, including the prestigious Technology Pioneer 2011 award from the World Economic Forum. SWAN January

12 Sources: 1 Frost & Sullivan, September TMCnet, July awwa-records-10-percent-growth-deployment-smart-water.htm 3 Frost & Sullivan, November The Manager s Non-Revenue Water Handbook, Ranhill Utilities Berhad and the United States Agency for International Development (USAID), July Water Audits and Leak Detection, AWWA Manual, Energy efficiency in the water industry, a Global Research Project, IWA Publishing EPA, 8 Water and Energy Nexus, Lund University, Sweden, Published in Encyclopedia of Sustainability Science and Technology, Springer Verlag 2011 SWAN January