8/6/2024 –
Water utilities around the world are faced with many challenges including technical and commercial losses, falling revenues/customer payment collection efficiency, water quality monitoring, and increasing demand. While building new assets remains part of the solution, enhancing the performance of existing assets is more important than ever before to optimize operation efficiency.
Advances in the technology arena offer the promise of transformation, with advanced systems introducing a much-needed merge of data into water operations across the industry. Big Data and the Internet of Things continue to disrupt legacy processes, introducing new efficiencies and opportunities.
However, technology alone is not enough to solve all issues. To create a successful plan, it is important to consider not only the technical aspects of the new technologies, but also to include a detailed analysis of the type of utility and its business strategy, which includes a future vision of the company, the profile of its operations, and the normative requirements and guidelines of the state regulatory entity, as well as a knowledge of the relevant cultural, political, and economic topics of the country.
It’s in this sense that Brazil is giving great strides. At the end of July 2024, the state of São Paulo privatized Sabesp with Grupo Equatorial as its new controller. Sabesp is one of Brazil’s largest water and sanitation companies in the country serving 375 municipalities today. This pivotal move marks a new chapter in the company’s history and presents an unprecedented opportunity for technological advancement and market expansion.
The privatization of Sabesp aims to modernize its operations, aligning with global best practices. Through the successful integration of innovative technologies and the modernization of its infrastructure, Sabesp is set to reinforce its position as a leader in water and sanitation management. This commitment to innovation and efficiency will enhance the company’s reputation and strengthen its market presence. Special consumers facing vulnerability issues will receive 10% discount in Sabesp tariffs according to the agreement. The International Finance Corporation (IFC) developed a feasibility study that provided the guidance for the privatization process.
“We are excited about the impact of Sabesp privatization and the integration of new technologies and the possibility to aggregate new markets, such as: solid waste, water reuse distribution, biogas generation, industrial effluents treatment, green energy generation” said Paulo Sigrist, Product Director. “These initiatives will not only transform how Sabesp manages operations but also position the country at the forefront of technological innovation and market expansion.”
The newly privatized company is now able, for example, to develop microducting technology to deploy fiber optics using distribution pipes. Fiber optic technology provides high-capacity data transmission and low latency, facilitating efficient communication across the Sabesp network. This allows for the effective use of Big Data and artificial intelligence to analyze and optimize operations, leading to more informed decision-making and operational excellence leading to improved detection of issues, such as leaks and pressure irregularities, and enhancing overall system efficiency. Microducts provide a protected pathway for creating a sensor network throughout the water distribution service area, a allowing utilities to strategically place sensors in key locations without extensive excavation.
The deployment of fiber optic infrastructure not only supports Sabesp’s internal operations but also creates opportunities for new revenue streams. By partnering with third parties to lease fiber capacity, Sabesp can enter telecommunications markets, diversifying its business and generating additional income.
Fiber optic networks are known for their reliability and resistance to interference. Encapsulating the cables in the distribution pipes will guarantee protection against vandalism and accidents. This enhances the resilience of Sabesp’s communication systems, ensuring continuous operation and security for critical infrastructure.
Celplan has been working with smart utilities for over 15 years providing consulting and engineering services to help them develop and implement new data management and connectivity technologies. We are excited for the new opportunities to support Sabesp and Grupo Equatorial in this endeavor.
About Sabesp
Sabesp is a leading Brazilian company in water and sanitation services, responsible for the management and operation of water supply and sewage systems in São Paulo state, covering 375 cities. With a commitment to excellence and sustainability, Sabesp continues to strive for the improvement of life quality in the communities it serves.
About Grupo Equatorial
Grupo Equatorial, officially known as Equatorial Energia S.A., is a prominent Brazilian conglomerate with significant interests in the energy sector. Established in 1999, the group has become a major player in the electricity distribution, transmission, and generation markets in Brazil. Its strategic expansion into telecommunications and other sectors highlights its commitment to growth and diversification.
