Krishna C. Rao

Business Models and Economic Approaches Supporting Water Reuse

Water reuse has significant environmental benefits that include mitigating water scarcity, and offering opportunities for revenue generation, especially if more resources than water are recovered, or if treatment can deliver water of potable quality. Options for achieving cost recovery or cost savings range from the promotion of greywater use at household or community level, to inter- and intra-sectoral water swaps, the replenishment of natural resources, on-site value creation through treatment related aquaculture, and reclaimed water sales for different purposes. Value might also be derived from emerging models of water hedging for future reuse markets. A key element of the business model approach is the move toward operational cost-recovery at minimum and profit maximization at best. Although cost recovery is typically low in wastewater use projects and treatment is primarily a ‘social business model,’ several empirical examples highlight opportunities for enhancing the business character of wastewater use by pursuing different value propositions and innovative mechanisms to achieve overall system sustainability.

Business Models and Economic Approaches for Recovering Energy from Wastewater and Fecal Sludge

Universal access to water, sanitation and energy services are key challenges in low income countries. The conventional model of providing water, sanitation and waste disposal as a social service is no longer viable because national authorities lack financial and human resources for operation and maintenance and for addressing the sanitation needs locally. Human excreta and wastewater represent resources that can be used to generate new income and support livelihoods through use as a source of energy. The reduction, removal and reuse of wastes must become financially feasible and economically profitable and yield high returns. This requires innovative and sustainable business models and financing instruments for their implementation. This chapter presents an overview of successful and emerging business cases for recovering energy and other useful products from wastewater and fecal sludge from low and middle income countries. The business cases are analysed for their business concepts and opportunities and challenges for scaling-up and scaling-out. Key policy implications and conclusions for supporting the business model approach in the developing world are discussed.