Water, investments rise to 56 euros per inhabitant per year (+17% from 2019)
Investments in the water sector in Italy reach 56 euros per inhabitant per year. The figure signals a growth of 17% since 2019 and 70% since 2012, a trend that is reflected in the improvement in service quality, albeit with marked differences between North and South. Between these, a deep gap remains in terms of investment capacity between industrial and municipal management “in economy”, widespread above all in the South.
A gap that must necessarily be filled also in light of the recent drought phases, a phenomenon that could be more frequent in a future dominated by the climatic effects of global warming. This is the picture that emerges from the new Blue Book – the complete monograph of the integrated water service data – promoted by utilitalia and made by Foundation of Utility. A study carried out in partnership with The European House – Ambrosetti and in collaboration with Istat, Ispra, Cassa Depositi e Prestiti, the Department of Civil Protection not Basin Authority.
We are still far from the European average
With the launch of the ARERA regulation in 2012, after years of instability, the investments made have recorded a constant increase: for 2021, a per capita value of 56 euros is estimated, a figure up by 17% compared to 2019 (49 euros per inhabitant) and by around 70% compared to 2012 (33 euros per inhabitant).
Growing numbers but still far from the European average relating to the data of the last five years available, which is equal to 82 euros per inhabitant. The analysis of the destination of the investments made by the managers shows how the priority objective is the containment of the levels of water losses (22%). Among the main interventions, the improvement of the quality of the purified water follows (18% of the total) and investments in sewage pipes (14%). However, there are still large differences between the different areas of the country.
The estimate of the investments made by industrial managers in 2021 for Central Italy is equal to 75 euros per year per inhabitant, followed by the North-East (56 euros) and the North-West (53 euros). The estimate for the South is decidedly lower, equal to 32 euros per year per inhabitant. The data relating to “in economy” management is still very low, where the local authorities deal directly with the water service: here the average annual investments amount to 8 euros. Of the 1,519 Municipalities in which the management of at least one of the services is “in economy”, 79% is located in the South for a population concerned of approximately 7.7 million people.
Network losses and service interruption
The effectiveness of the general increase in investments observed in recent years seems to be confirmed by the water service quality indicators. This is demonstrated by the data on network losses (from around 44% in 2016 to 41% in 2021) or on the frequency of spills/flooding in the sewer system (from 12 events per year every 100 km of network in 2016 to 5 in 2021) .
Different performances are observed between North and South, as proof of the territorial difference: an example is the number of service interruptions, which in the South is two orders of magnitude higher than in the North, or network losses, which in the Southern regions they stand at about 47% against 31% in the North-West.
“To solve the problems that afflict the water service in different areas of the South – he points out Stefano Pareglio, president of the Utilitatis Foundation – is a question that can no longer be postponed. It is necessary to work to raise the level of investments and to reduce the infrastructural gap, acting rapidly on governance by favoring the participation of industrial operators. As demonstrated by the positive experiences of the Centre-North, and in some cases also of the South, only in this way is it possible to obtain an increase in investments and the quality of the services offered to citizens. Where management is still entrusted directly to the municipalities, there is in fact such a low level of investment as to not allow for network development programmes, nor adequate maintenance”.
The water crisis
Further investments are needed to overcome the territorial gap and improve the degree of resilience of infrastructures in the light of the effects of ongoing climate change. 2022 was the hottest and least rainy year in Italian history, with temperatures reaching +2.7 °C compared to the 1981-2010 average and significant rainfall anomalies especially in the central-northern regions.
These variations are inserted in the context of the effects of climate change in progress: in the last 70 years, in Italy, a statistically significant increase has been observed in the areas affected by extreme drought and, in the last 9 years, the temperature in the main Italian cities has increased by 1.3°C. Meteo-climatic variations that have a significant influence on the hydrological cycle: the estimate of average water availability for the last thirty years shows a 20% reduction compared to the period 1921-1950.
In any case, the causes of water crises are not linked exclusively to the changing climate, but can also be attributed to factors of vulnerability that characterize the Italian water sector. During the 2022-2023 crisis, the actions implemented by the Civil Protection, by the Basin Authorities, by their Observatories, by the service managers and by the other interested actors made it possible to limit the inconvenience for the population.
For the future, in order to best deal with similar events, it is necessary to adopt an operational strategy that combines short-term measures (e.g. use of tankers, tanks and new sources of supply) mainly oriented towards minimizing impacts, with medium-long term interventions term (e.g. infrastructural interventions), aimed at improve the resilience of water supply systems. From this latter point of view, Utilitalia has estimated that to deal with the effects of the climate crisis, managers in the coming years will invest at least 10 billion euros in addition to the interventions financed by the PNRR – half of which by 2024 – for a volume total amount of recovered water estimated at approximately 620 million cubic metres.
The eight proposals of Utilitalia
As emerges from the 2023 White Paper “Value of Water for Italy” contained in part in the 2023 Blue Book, to mitigate supply security problems, the experience of the water crisis has reaffirmed the need to adopt a preventive approach in managing water ‘water, where the so-called”5 R” – Collection, Recovery, Reuse, Recovery and Reduction – constitute the actions necessary to ensure the circularity of the resource and the security of supply.
Furthermore, the actions to be put in place to deal with these episodes must necessarily include a combination of factors that concern not only efficient use, but also the creation of modern infrastructures which allow the diversification of the procurement strategy and, last but not least, the overcoming of the management and governance criticalities which today hold back the development of the sector and reduce the quality of the service in some areas of the country.
From this point of view it is important to promote interventions in innovation and digitization also by resorting to fast-developing tools such as venture capital. Utilitalia has launched eight concrete proposals to favor the infrastructural adaptation of water networks to climate change. Short-term ones (within 3 months) include: promoting efficient reuse, countering the salt wedge, diversifying the procurement strategy and supporting the presence of industrial management; among the medium-term ones (within 6 months) the strengthening of the governance of the river basin districts and simplification for the implementation of investments, while among the long-term ones (over 6 months) the promotion of the efficient use of water and the implementation of strategic infrastructure works.
“The effects of climate change on the availability of water resources – concludes the president of Utilitalia, Filippo Brandolini – are increasingly evident and give rise to events that can no longer be considered exceptional. You have to face them with interventions that favor the resilience of networks and aqueduct systems within a global approach that considers all the different uses of water in our country, guaranteeing priority to civil use. At the same time, the Blue Book data clearly shows the need for urgent interventions on the governance front, without which it will be impossible to bring the level of investments close to the European average and bridge the water service divide between the various Italian areas”.
(Ticker)