Water sector needs €10B investment boost

The study highlights that water infrastructure is no longer merely a basic public utility but is increasingly evolving into a strategic asset directly linked to economic resilience, environmental sustainability, and public policy.

Pressure from Climate Change and Infrastructure Challenges

Prolonged periods of drought, declining water reserves, and significant losses across water distribution networks are intensifying the need for investment and infrastructure modernization. At the same time, the evolving regulatory framework and stricter compliance requirements are reshaping the way water services are planned, financed, and operated, reinforcing the need for long-term strategic planning.

According to EY-Parthenon, Greece continues to be characterized by a highly fragmented water sector, with 129 Municipal Water Supply and Sewerage Enterprises (DEYAs), more than 450 irrigation organizations, and numerous local management entities. This fragmentation affects operational efficiency, financial sustainability, and the pace of investment implementation.

Water Losses of up to 50%

The study notes that water losses exceed 30%–40% in several regions and, in certain networks, surpass 50%, reflecting aging infrastructure and shortcomings in monitoring and management systems. At the same time, water reuse remains limited at approximately 2%, while irrigation continues to account for 85% of total water consumption, with more than 70% sourced from groundwater reserves.

According to the analysts, these figures underscore the urgent need to transition toward more efficient and circular models of water resource management.

A €10 Billion Investment Cycle

Despite the challenges, the water sector presents significant growth opportunities. EY-Parthenon estimates that medium- and long-term investment needs in water infrastructure amount to approximately €10 billion. Meanwhile, the two largest companies in the sector have already launched or are implementing investment programs exceeding €3 billion, aimed at expanding, upgrading, and improving the efficiency of their networks.

Funding for these projects is expected to come from a combination of public resources, European financing instruments, corporate funds, and private investment, while investor interest in the sector is also increasing.

A New Regulatory Environment

Institutional reforms are expected to play a pivotal role in the transformation of the market. The expansion of the responsibilities of the Regulatory Authority for Waste, Energy and Water (RAAEY), stricter European requirements for wastewater management, and initiatives aimed at reducing sector fragmentation are creating a new operating framework.

These developments entail higher standards of transparency, accountability, and data reporting, while simultaneously enhancing the sector’s ability to improve planning and attract investment. As noted by Tasos Iosifidis, Head of EY-Parthenon Greece, the future of the sector requires close coordination between public and private stakeholders to establish a sustainable model that combines infrastructure development, financial viability, and resilience to the impacts of climate change.

Similarly, Konstantinos Thanaskos, Head of Economic Studies at EY-Parthenon Greece, emphasizes that the water sector is expected to become one of the most important investment and growth areas in the coming years, as it seeks to balance the need for substantial capital investment with the preservation of the public character of a resource that is essential to society.