By 2030, 60% of the world’s population will live in urban areas, with a third residing in cities of over half a million people. Rapid urbanization, particularly in Africa and Asia, drives intense competition for water resources. Aging infrastructure, inadequate waste management, and land-use changes further strain water systems, while climate change exacerbates the challenges by altering weather patterns and reducing water availability for human consumption, agriculture, energy, and industry.
In this context, transitioning to a circular water economy is crucial. This approach shifts from the traditional “use and dispose” model to a regenerative system where water is reused and recycled continuously. By reducing water consumption, treating wastewater for reuse, and recovering valuable resources from waste streams, circular water practices enhance water security, minimize environmental impact, and promote sustainable urban development. Experts emphasize that water reuse is vital for future urban water management, reducing water footprints and building resilience in water-stressed environments. Reuse should occur at every scale—behind the meter to reduce demand and in front of the meter to diversify and enhance water supply.
Green infrastructure and nature-based solutions address the limitations of traditional water systems, which were designed for smaller populations and less urbanization. By working with nature, these solutions enhance natural infiltration, storage, and filtration while providing co-benefits such as improved water quality, reduced urban heat, enhanced biodiversity, carbon sequestration, and recreational spaces. Mimicking natural processes offers a cost-effective and adaptive approach to managing floods, droughts, and heat, ensuring long-term resilience.
Desalination plants offer a vital solution to water scarcity by converting seawater into freshwater, though traditional methods can be costly and energy-intensive. Innovations like MIT’s solar-powered desalination system, which operates without batteries, provide a sustainable and cost-effective alternative. These advancements ensure reliable water supplies, especially for off-grid and water-stressed regions.
Greece faces significant water challenges, with regions like the Aegean Islands and Crete suffering chronic deficits while others have surplus water. Agriculture consumes over 80% of resources, far above the EU average, and declining rainfall puts 84% of the country at risk of desertification by 2030. To address this, Greece is investing in renewable energy-driven desalination, water reuse technologies, and wastewater treatment upgrades supported by over €1 billion in government and EU funding. These efforts aim to modernize infrastructure, lower environmental impact, and secure a sustainable water future.
Sirec Energy, Greece’s largest private equity fund with a focus on sustainable infrastructure, is exploring investments in this growing field.
Dionisis Alissandratos, Managing Director of Sirec Energy, commented:
“Sirec Energy acknowledges the significant challenges regarding water availability in the future. Therefore, we consider investments in renewable energy desalination to be a meaningful initiative. With declining rainfall and rising temperatures, water supply is expected to pose a serious issue in the coming years, particularly in Greece. We are actively exploring investment opportunities to modernize water distribution infrastructure and contribute to a circular water economy”.