A partnership involving Bristol Water has been awarded funding by the industry regulator to explore more sustainable ways of managing water supplies, which could “reinvent” the wholesale market.
The supplier, which has 1.2 million customers, has joined forces with Scottish provider Castle Water, water management firm Binnies, electricity giant RWE and the University of West England, to find low-carbon alternatives to drought planning.
Ofwat has awarded the group £620,000 to support a project that could potentially see the development of water plants on land owned by firms outside the sector for the first time.
Bristol Water said that the plans could improve costs and environmental impact of current drought strategies by reducing distances for water to be pumped across supply infrastructure.
As part of the project, the company and its partners will be investigating whether land owned by RWE at Didcot Power Station in Oxfordshire can be used to supply treated water to Castle Water.
Bristol Water said it would provide its expertise on water treatment to help and manage the process.
Mel Karam, chief executive of Bristol Water, said: "The water industry needs an estimated £21bn to build resilience to drought over the next 30 years.
“To compliment the industry’s current focus on infrastructure to pump water further, we’re exploring the development of smaller and local treated water supplies which could lower the environmental impact as well as a range of other benefits."
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Castle Water chief executive John Reynolds, said the move could “reinvent "the retail and wholesale market, and provide incentives for a “step change” in business water efficiency.
Roger Bewley, business development manager at RWE, added: “We’re delighted to be part of this innovative project, we continuously look for development options on our operational sites, this collaboration will hopefully bring a new product to market with less emissions and at the least cost to the consumer.”
The funding was awarded by an independent judging panel as part of OfWat’s £36m Water Breakthrough Challenge initiative, which looks to support innovations that benefit water customers, society and the environment.
Bristol Water was acquired by Exeter-based utilities giant Pennon in a £814m deal in June. The competition and market authority said last month it would be assessing whether the deal could reduce competition in the water industry.
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