Creating a Renewables Investment Strategy for South Staffordshire Water

Creating a renewables investment strategy for South Staffordshire Water

Case study

South Staffordshire Water provides drinking water to 1.6 million customers across a network of 6,000km of pipes.

They required a renewables investment strategy, providing a holistic, best-value approach that balances carbon reduction and total expenditure costs. The strategy needed to integrate seamlessly into their wider net-zero journey and support their master plan for achieving renewable energy generation targets and objectives.

We were engaged to develop a strategy supported by a resourced framework of actions that South Staffordshire Water took to drive decarbonisation through energy generation.

The strategy was designed to stand up to both board and regulatory scrutiny.

Solution

We deployed a multi-disciplinary team with capability in energy decarbonisation, asset management, economic regulation, and environmental sustainability. A fundamental principle for this work was that the strategy would maximise whole-life carbon reduction for the client.

After reviewing existing performance in relation to current regulation and best practice, a strategy was developed to drive transformational change across South Staffordshire Water’s built and natural capital estate.

This included renewable energy feasibility assessments and economic ROI models for several different climate change scenarios, using total expenditure estimates to inform strategic planning. We also reviewed the corporate estate, developing a scoring matrix to identify and prioritise candidate sites to provide the required decarbonisation benefits.

Using the renewable energy assessments, we defined credible opportunities with quantified generation benefits, including calculating a greenhouse gas emissions baseline with scope 1, 2 and 3 emissions sources.

To facilitate strategic decision making, we also prepared a set of investment scenarios to deliver a range of decarbonisation outcomes across different time horizons.

Other significant outputs included a review of the regulatory landscape in relation to net-zero decarbonisation, production of a net-zero action plan, and benchmarking South Staffordshire Water against the net-zero strategies of utility peers, Ofwat, and Water UK.

Outcome

Using our strategic approach to sustainability, our carbon tool, and our commercial expertise in developing renewable solutions, we recommended that South Staffordshire Water:

invested in the assets which could offset power imports at larger sites, and
sought a third party for the remaining sites who would invest in and export power to South Staffordshire Water through a corporate power purchase agreement.

Our approach has directly contributed to the 2025-2030 investment period delivery plan and enabled solutions to be delivered sooner, while achieving carbon reductions with less impact on customer bills.

Our renewables investment strategy recommendations have been adopted into South Staffordshire Water’s long-term delivery strategy, setting out their adaptive approach for the next 25 years. This strategy was endorsed by Ofwat at PR24 draft determination.

“Aqua Consultants' measured approach considered opportunities for renewable energy generation, effectively engaging the key stakeholders across the business and delivered within a tight regulatory driven timeframe.”

Jared McGivern, Head of Asset Management

South Staffordshire Water