Water sector, investments rising to 40 billion between 2018 and 2029

In Italy, 40 billion euro of investments have been earmarked for the water sector between 2018 and 2029, according to a trend that peaks in the two-year period 2024-2025. This is what emerges from the latest study on the subject by the research and consulting company Agici, presented during the 8th Annual Conference of the Oswi Water Observatory (Observatory for a Sustainable Water Industry) by Agici itself, with Abb, Acinque and Siemens.

The study analysed a sample of 115 managers serving a population of more than 49 million inhabitants (83% of the Italian population). Their investment strategies show an upward curve over the years: if between 2018 and 2023 €13.6 billion was spent, in the period 2024-2029 the budgeted investments are almost double, amounting to €26 billion. The largest increase is recorded in 2024 (€4.3 billion) and 2025 (€5.1 billion): evidence explained by the presence of the NRP funding, as also confirmed by the subsequent decrease in investments expected in the following four-year period.

With regard to the areas of intervention, Agici highlights the greater weight of investments to reduce water losses, followed by those to improve the quality of purified water and to adapt the sewage system. As for the impact on the territory, the realisation of investments in the 2018-2029 period will result in a series of net benefits measurable in 3.1 billion euros by 2050, mainly consisting of greater availability of water resources, lower water production costs linked to leaks, savings for households and a reduction in damage caused by flooding.

The study also notes a 16% growth in the total revenues of integrated water system operators over the period 2018-2023, rising from EUR 5.6 billion in 2018 to EUR 6.5 billion in 2023, with a peak of EUR 6.7 billion recorded in 2022. Over the same period, the companies show an increasing debt exposure, particularly to the banking system, with an increase of 36%. But constituting an increasing weight in the debt breakdown is sustainable financing, in line with European green transition policies and the growing need to strengthen climate finance.

It is precisely sustainable finance that is one of the most effective tools identified by Agici, alongside public-private partnerships, to respond to the disappearance of public financing, such as the NRP funds, and to ensure the continuity of investments in the long term. It therefore appears necessary for water companies to develop more competitive financing models that are less tied to the regulated sector, with industrial water management, moving towards the market and attracting capital that can meet future needs.