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Exploring the transferability of market, technical, and regulatory concepts from the electricity to the water sector

Author: Arnold-Keifer, Sonja,Barkhausen, Robin,Berger, Frederic,Hillenbrand, Thomas,Liesenhoff, Fabian,Niederste-Hollenberg, Jutta,Sánchez González, Rodrigo
Publisher: Karlsruhe: Fraunhofer Institute for Systems und Innovation Research ISI
Year: 2025
DOI: 10.24406/publica-4903
Source: https://www.econstor.eu/bitstream/10419/328002/1/1937609537.pdf
A nold-Kei e , Sonja e al.
Wo king Pape
Explo ing he ans e abili y o ma ke , echnical, and
egula o y concep s om he elec ici y o he wa e sec o
Wo king Pape Sus ainabili y and Inno a ion, No. WP S04/2025
P o ided in Coope a ion wi h:
F aunho e Ins i u e o Sys ems and Inno a ion Resea ch ISI
Sugges ed Ci a ion: A nold-Kei e , Sonja e al. (2025) : Explo ing he ans e abili y o ma ke ,
echnical, and egula o y concep s om he elec ici y o he wa e sec o , Wo king Pape
Sus ainabili y and Inno a ion, No. WP S04/2025, F aunho e Ins i u e o Sys ems und Inno a ion
Resea ch ISI, Ka ls uhe,
h ps://doi.o g/10.24406/publica-4903
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h ps://hdl.handle.ne /10419/328002
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Explo ing he T ans e abili y o Ma ke , Technical,
and Regula o y Concep s om he Elec ici y o he
Wa e Sec o
Au ho s:
Sonja A nold-Kei e , Robin Ba khausen, F ede ic Be ge , Thomas
Hillenb and, Fabian Liesenho , Ju a Niede s e-Hollenbe g, Rod igo
Sánchez González
No. WP S04/2025
Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
o
F aunho e ISI | 2
Publishing No es
Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Con-
cep s om he Elec ici y o he Wa e Sec o
Au ho s (in alphabe ical o de , all F aunho e Ins i u e o Sys ems und Inno a ion Resea ch ISI)
A nold-Kei e , Sonja, sonja.a [email p o ec ed]
Ba khausen, Robin, obin.ba khaus[email p o ec ed]
Be ge , F ede ic, ede ic.be ge[email p o ec ed]
Hillenb and, Thomas, homas.hillen[email p o ec ed] .de
Liesenho , Fabian, [email p o ec ed]
Niede s e-Hollenbe g, Ju a, ju a.niede s e-hollenbe g@isi. aunho e .de
Sánchez González, Rod igo, od igo.sanchez.gonza[email p o ec ed]
Recommended ci a ion
A nold-Kei e , S., Ba khausen, R., Be ge , F., Hillenb and, T., Liesenho , F., Niede s e-Hollenbe g, J., Sánchez
González, R. (2025): Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he
Elec ici y o he Wa e Sec o . Ka ls uhe: F aunho e Ins i u e o Sys ems and Inno a ion Resea ch (ISI).
DOI: 10.24406/publica-4903
Published
Augus 2025
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F aunho e Ins i u e o Sys ems und Inno a ion Resea ch ISI
B eslaue S aße 48, 76139 Ka ls uhe, Ge many
Thomas Hillenb and, homas.h[email p o ec ed]
No es
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Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
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Abs ac
This epo in es iga es ela ionships be ween he wa e and elec ici y sec o s, emphasizing hei
sha ed challenges in he con ex o clima e change and u baniza ion. As bo h sec o s a e c ucial o
mode n socie y, hei e olu ion owa ds sus ainabili y is inc easingly i al. The epo begins wi h a
his o ical o e iew o each sec o , illus a ing how he elec ici y sec o has pionee ed inno a i e
app oaches ha can in o m he wa e sec o 's ansi ion.
The analysis iden i ies h ee key concep s – sma me e s and dynamic p icing schemes, legal in-
s umen s such as cap-and- ade schemes, and ex ended sec o coupling – ha ha e p o en e ec-
i e in he elec ici y sec o and e alua es hei po en ial applicabili y o he wa e sec o . Sma
me e s, which enable eal- ime moni o ing and e icien demand managemen , could enhance wa-
e usage e iciency, while dynamic p icing models could incen i ize conse a ion beha iou s. Ad-
di ionally, he explo a ion o legal ins umen s like cap-and- ade schemes may p o ide new ame-
wo ks o managing wa e esou ces mo e e ec i ely.
The epo also discusses he po en ial o ex ended sec o coupling, whe e he in eg a ion o wa e
and ene gy sys ems can op imize esou ce use and imp o e esilience. This app oach highligh s he
impo ance o iewing wa e no jus as a u ili y, bu as a esou ce ha can con ibu e o ene gy
managemen and sus ainabili y.
Despi e he oppo uni ies o inno a ion, he epo acknowledges he challenges aced by he wa-
e sec o , including i s egula o y cons ain s and he agmen ed na u e o i s ma ke . These ac-
o s con ibu e o a slowe adop ion o new echnologies compa ed o he elec ici y sec o . How-
e e , he po en ial bene i s o adap ing success ul s a egies om he elec ici y sec o a e signi i-
can , wi h implica ions o esou ce managemen , egula o y compliance, and sys em in eg a ion.
In conclusion, he epo ad oca es o u he esea ch and pilo p ojec s o explo e he easibili y
and impac o hese concep s wi hin he wa e sec o . By le e aging lessons lea ned om he elec-
ici y sec o , s akeholde s can enhance he esilience, e iciency, and sus ainabili y o wa e sys ems,
ul ima ely con ibu ing o a mo e sus ainable u u e o bo h sec o s.
Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
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Con en s
Publishing No es .......................................................................................................................... 2
Abs ac .......................................................................................................................................... 3
Con en s ......................................................................................................................................... 4
1 In oduc ion.................................................................................................................... 6
1.1 His o ical de elopmen o he wa e sec o ............................................................................... 6
1.2 His o ical de elopmen o he elec ici y sec o ....................................................................... 7
1.3 Aim and s uc u e o his epo .................................................................................................... 8
2 Me hods ........................................................................................................................ 10
2.1 Sec o compa ison and iden i ica ion o ele an concep s ................................................ 10
2.2 Assessmen o concep ans e abili y ....................................................................................... 10
3 Sca ci y as a d i e o change and sec o compa ison ...................................... 12
3.1 Elec ici y sho age ......................................................................................................................... 12
3.1.1 Types o elec ici y sho ages.................................................................................................................................................... 12
3.1.2 Coun e measu es in case o elec ici y sho age .............................................................................................................. 12
3.2 Wa e sho age ................................................................................................................................ 13
4 Compa ison o wa e and elec ici y sec o ......................................................... 15
4.1 Technical aspec s ............................................................................................................................. 15
4.2 Ma ke aspec s ................................................................................................................................. 17
4.3 Regula o y aspec s .......................................................................................................................... 18
5 Iden i ica ion o concep s .........................................................................................20
6 T ans e abili y o concep s ....................................................................................... 21
6.1 Sma me e s and dynamic p icing schemes ........................................................................... 21
6.1.1 Gene al unc ioning in elec ici y sec o ............................................................................................................................... 21
6.1.2 T ans e abili y o wa e sec o .................................................................................................................................................. 22
6.2 Legal ins umen s ........................................................................................................................... 25
6.2.1 Cap-and- ade schemes .............................................................................................................................................................. 25
6.2.2 Wa e sa ing obliga ion schemes ........................................................................................................................................... 27
6.3 Ex ended sec o coupling.............................................................................................................. 31
6.3.1 Gene al unc ioning in elec ici y sec o ............................................................................................................................... 31
6.3.2 T ans e abili y o wa e sec o .................................................................................................................................................. 32
7 Discussion and conclusion ....................................................................................... 34
8 Lis o igu es ............................................................................................................... 37

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9 Lis o ables .................................................................................................................38
10 Publica ion bibliog aphy ...........................................................................................39
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1 In oduc ion
In a wo ld inc easingly shaped by clima e change and u banisa ion, ou eliance on obus wa e
and ene gy sys ems is mo e c i ical han e e . These sec o s, hough dis inc , ace common chal-
lenges and oppo uni ies. The ene gy sec o has pionee ed se e al inno a i e concep s owa ds a
sus ainable ansi ion, o e ing aluable lessons ha he wa e sec o can lea n om. This epo
explo es he po en ial o c oss-sec o al lea ning, assessing how success ul inno a ions in elec ici y
can be adap ed o he wa e sec o .
The ollowing sec ions del e in o he his o ical e olu ion o hese sec o s: i s , he wa e sec o
(1.1), hen he elec ici y sec o (1.2). Sec ion 1.3 ou lines he aim and s uc u e o his epo , se ing
he s age o an analysis o ans e able concep s.
1.1 His o ical de elopmen o he wa e sec o
The e olu ion o he wa e sec o is closely linked o he de elopmen o human ci ilisa ions. E e
since he i s human se lemen s lou ished housands o yea s ago, in as uc u e o i iga ion
and d inking wa e was buil . As he popula ion densi y o se lemen s inc eased due o imp o e-
men s in ag icul u e, sani a ion became a bigge conce n. Consequen ly, sewage sys ems we e con-
s uc ed, and wa e o be e quali y was anspo ed o e longe dis ances by aqueduc s. In some
ci ies, such sys ems appea ed as ea ly as 4 000 yea s ago. (G an 2016a)
The echnology o ea and anspo wa e emained undamen ally unchanged o mos o hu-
man his o y (G an 2016b). I was un il he beginning o he 19 h cen u y whe e mode n wa e
supply and sewage sys ems appea ed in indus ialised na ions, a ime whe e he expansion o ci ies
was so d as ic ha signi ican changes we e needed (Hansen 2024; Lemon 2024). These ad ances
include he use o chlo ina ion and il a ion o d inking wa e ea men and sedimen a ion and
il a ion in was ewa e ea men .
Today, no only u banisa ion poses a h ea , bu also clima e change. Ex eme wea he e en s such
as in ense ain all and p olonged d ough s inc ease in magni ude and occu ence, h ea ening he
in as uc u e's eliabili y and secu i y. Fo ins ance, in 2021, he wes e n Uni ed S a es expe ienced
se e e d ough condi ions, leading o wa e sho ages ha a ec ed millions o people and ag icul-
u al ac i i ies. The Colo ado Ri e , a i al wa e sou ce o se en U.S. s a es, saw i s lowes le els in
decades, p omp ing eme gency measu es and in e s a e wa e ag eemen s o manage he c isis
(Ga cia e al. 2019). Simila ly, in Sou h A ica, Cape Town aced a "Day Ze o" in 2018, whe e he ci y
nea ly an ou o wa e due o p olonged d ough . This c isis highligh ed he impo ance o p oac-
i e wa e go e nance, as s ingen wa e -sa ing measu es and e ec i e communica ion wi h he
public played c ucial oles in a e ing disas e (Madonsela e al. 2019). Meanwhile, in Ge many, he
d ough o 2018-2020, one o he mos se e e o e he las cen u ies, caused signi ican losses in
he ag icul u al and o es y sec o (Con ad e al. 2023).
The need o adap has d i en inno a ions in he wa e sec o . Fo mos o he 20 h cen u y, he
hyd aulic pa adigm was he no m, cha ac e ised by big, cen alised enginee ing p ojec s (e.g. dams)
o ensu e wa e supply. This pa adigm is challenged by he ise o new concep s, such as wa e -
sensi i e logic and wa e ma ke logic (Fuen schilling and T u e 2016).
In he hyd aulic pa adigm, su ace and g oundwa e bodies we e he main sou ces o wa e , leading
some imes o o e use. Due o new egula ions like he Wa e F amewo k Di ec i e (Eu opean Pa -
liamen 2000) and he Ge man Wa e S a egy (BMU 2023), he sus ainable use and he p o ec ion
o wa e bodies became a op p io i y. These egula ions p omo e he ena u a ion o wa e cou ses
Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
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(e.g. by dam emo al), wa e ci cula i y (e.g. by eusing g eywa e o ea ed was ewa e ), and he
use o al e na i e wa e sou ces (e.g. collec ing ain all).
Some o he main inno a ions in he wa e sec o o e he las decades ha e been achie ed in
(was e-)wa e ea men echnologies (O’Callaghan e al. 2020). Despi e he p og ess, esea ch ex-
pendi u e on wa e is s ill a behind he ene gy sec o (Eu opean Commission. 2016). Inno a ion
adop ion in he wa e sec o is a slow p ocess compa ed wi h o he indus ies; he wa e sec o
i sel is necessa ily conse a i e, and egula ion-bound (O’Callaghan e al. 2020; Wehn and Mon-
al o 2018).
Acco ding o he au ho (O’Callaghan e al. 2020) “The agmen ed na u e o he global wa e ma -
ke , long eplacemen cycles o exis ing echnologies and he ma ke g ow h dependence on pop-
ula ion inc eases and new egula ion all con ibu e o he slow echnology di usion a es and low
dis up ion in he wa e sec o .”
The nex sec ion will discuss he de elopmen o he elec ici y sec o , whe e ma ke and economic
e iciency p inciples ha e shaped he inno a ion o his sec o .
1.2 His o ical de elopmen o he elec ici y sec o
Compa ed o wa e , elec ici y is a ela i ely ecen esou ce. While s a ic elec ici y was ecognized
in ancien imes, he sys ema ic s udy and o mal unde s anding o elec ical and elec o echnical
p inciples only began in he la e 17 h cen u y. The disco e y o elec ical cha ge, cu en s, and elec-
omagne ism pa ed he way o inno a ions like he ba e y, eleg aphy, and gene a o s.
The widesp ead adop ion o elec ic ligh ing, which eplaced gas ligh ing, played a c ucial ole in
b inging elec i ica ion o he gene al public. Simul aneously, he elec ic mo o igge ed he Sec-
ond Indus ial Re olu ion, displacing s eam engines in ac o ies. The in oduc ion o he i s elec ic
ailway in 1879 u he e olu ionized u ban anspo , in luencing ci y planning and de elopmen .
Elec ic mobili y also b ie ly became signi ican in pe sonal anspo a ion, cap u ing no able ma ke
sha es.
These echnological ad ancemen s necessi a ed he c ea ion o an ex ensi e supply in as uc u e,
leading o he es ablishmen o la ge-scale and egional ansmission ne wo ks. This de elopmen
ma ked he beginning o he elec ici y indus y's his o y, necessi a ing s a e egula ion o hese
na u al monopolies. A key egula o y shi was he libe aliza ion o he indus y, sepa a ing ene gy
gene a ion, ade, and dis ibu ion om ne wo k ope a ions. This aimed o p e en ma ke dis o -
ions and os e a ee ma ke , ul ima ely con ibu ing o he o ma ion o an in eg a ed Eu opean
elec ici y ma ke . Unlike he wa e sec o , his allowed o consume choice and he abili y o swi ch
p o ide s.
As he ene gy ansi ion becomes a cen al poli ical and socie al goal, enewable ene gy sou ces
a e inc easingly impo an . Wind powe and pho o ol aics a e expec ed o be he p ima y pilla s o
u u e elec ici y supply, wi h hei expansion in Ge many being suppo ed by egula o y and inan-
cial incen i es. This shi is leading o a decen aliza ion o he ene gy landscape, which was p e i-
ously domina ed by la ge ossil uel powe plan s.
The g owing in eg a ion o sec o s h ough new consump ion echnologies, such as hea pumps
and elec ic mobili y, p esen s new challenges o he u u e ene gy sys em. Elec ici y demand is
ising, while gene a ion is becoming mo e ola ile. The p oli e a ion o p i a e pho o ol aic and
s o age sys ems is also d i ing he end owa d localized gene a ion, ans o ming consume s in o
"p osume s" who bo h p oduce and consume ene gy. To ensu e he secu e ope a ion o powe
g ids, enhanced communica ion and con ol o ins alla ions will be equi ed o e icien ly and eco-
nomically le e age exis ing lexibili y in a g id- iendly manne .
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1.3 Aim and s uc u e o his epo
Bo h he wa e and he elec ici y sec o a e essen ial o mee ing ou daily needs. Clima e and
demog aphic changes (e.g. u banisa ion), a e unde lining ou eliance on he wo sec o s while
posing ans o ma ional needs. Despi e ob ious di e ences, he wa e and he elec ici y sec o
sha e some analogies. A la ge scales, bo h sys ems need la ge in as uc u e ne wo ks, cha ac e -
ised by long li e imes and high ixed cos s (Schleich and Hillenb and 2019). The e o s o plan,
cons uc , ope a e, main ain and decommission hese ne wo ks ypically equi e la ge in es men s.
Pe haps one o he main di e ences be ween elec ici y and wa e sec o s a e he d i e s o inno-
a ion. While inno a ion in he elec ici y sec o was p esumably la gely d i en by poli ics and he
ma ke , inno a ion in he wa e sec o was - his o ically - mainly d i en by demog aphic changes
(especially u banisa ion) and egula o y amewo k. The agmen ed na u e o he global wa e
ma ke , long eplacemen cycles o exis ing echnologies and he ma ke g ow h dependence on
popula ion inc eases and new egula ion all con ibu e o he slow echnology di usion a es and
low dis up ion in he wa e sec o (O’Callaghan e al. 2020).
Agains he backg ound o ans o ma ional needs, gi en he sha ed challenges and po en ial o
inno a ion in bo h he wa e and elec ici y sec o s, his epo posi s ha he e a e aluable lessons
o be lea ned om he elec ici y sec o 's inno a i e s a egies ha could be adap ed o he wa e
sec o . Speci ically, we will examine he ans e abili y o h ee concep s: sma me e s and dynamic
p icing schemes, legal ins umen s such as cap-and- ade schemes and wa e sa ing obliga ion
schemes, and ex ended sec o coupling using he example o decen alised dis ic s.
We di ided his publica ion in o i e chap e s (see Fehle ! Ve weisquelle konn e nich ge unden
we den.), including his in oduc o y chap e . Chap e wo is conce ned wi h he me hodology used
o his s udy. The hi d sec ion p esen s a deepe look in o sho age si ua ions as a d i e o change,
p o ides a compa ison o elec ici y and wa e sec o , and explains he h ee concep s ha we e
chosen o close analysis. The ou h sec ion lays ou he ans e abili y analysis o hese h ee
concep s. Fo each o he h ee concep s, we p esen he gene al unc ioning in he elec ici y sec o
ollowed by he analysis o easibili y, economic, en i onmen al and social impac s when applying
i o he wa e sec o . Finally, he conclusion gi es a b ie summa y and c i ique o he indings.
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4 Compa ison o wa e and elec ici y sec o
We s uc u ed he compa ison o wa e and elec ici y sec o in o echnical, ma ke and egula o y
aspec s. Compa ison ables o each o he h ee aspec s can be ound in he espec i e sec ion.
Technical aspec s (Table 1) a e subdi ided in o in as uc u e, supply and demand – each wi h u -
he subca ego ies. Ma ke aspec s (Table 2) a e di ided in o hose ela ed o design and hose
ela ed o p ice o ma ion. Regula o y aspec s (Table 3) a e di ided in o laws and s anda ds – on
EU, na ional and i applicable egional le el.
4.1 Technical aspec s
In he echnical aspec s, bo h sec o s ha e key in as uc u e componen s which a e in luenced by
a ious ac o s a ec ing hei design. The wa e sec o uses a combina ion o ex ac ion, ea men ,
pumping, pipe ne wo ks, s o age, and u iliza ion componen s, while he elec ici y sec o p ima ily
uses gene a ion plan s, cables and lines, subs a ions, and measu emen and moni o ing echnol-
ogy. T anspo losses a e a common ea u e in bo h sec o s, wi h he wa e sec o expe iencing
abou 6.8% losses in Ge many (BMU and UBA 2017). The elec ici y sec o su e s losses du ing
anspo , which a y depending on he me hod o ansmission and dis ance.
S o age in he wa e sec o is used o balance daily a ia ions in wa e demand and mus comply
wi h DIN EN 1508, while in he elec ici y sec o , s o age is possible only h ough con e sion and
wi h losses. Quali y and con amina ion a e c i ical issues in he wa e sec o , wi h wa e quali y
measu ed based on physical, chemical, and biological pa ame e s. In con as , he elec ici y sec o
does no ace de alua ion h ough "consump ion".
Supply in he wa e sec o comes om su ace wa e o g oundwa e and depends on p ecipi a ion
pa e ns which a y seasonally. In he elec ici y sec o , supply comes om a ious enewable and
non- enewable ene gy sou ces. Bo h sec o s ace challenges in p edic ing supply, in luenced by
ac o s like clima e change and land use changes. The wa e sec o has he po en ial o decen al-
iza ion ia ainwa e ha es ing, g ey wa e euse, and local wells, while he elec ici y sec o is ex-
pe iencing inc easing decen aliza ion h ough smalle sys ems (see Table 1).
Table 1: Compa ison o echnical aspec s o wa e and elec ici y sec o
Wa e sec o Elec ici y sec o
Technical aspec s
In as uc u e
Componen s
a)
Ex ac ion (g oundwa e : sp ing wa e , wells. Su ace wa e : ese oi s, bank
il a e and g oundwa e echa ge); b) ea men (wa e wo ks); c) pumping
(pumping s a ion); d) pipe ne wo k ( a ious ma e ials and diame e s); e) s o -
age ( anks); ) u ilisa ion (e.g. aps, o he appliances) (DVGW 2024)
Fac o s a ec ing design: a) Ex ac ion (local condi ions like hyd ology, geol-
ogy, popula ion and wa e consump ion); b) ea men (wa e quali y); c)
pumping ( opog aphy, p essu e losses); d) pipe ne wo k (cos s, low/speed a-
io); e) s o age (daily o seasonal luc ua ions in wa e consump ion).
The elec ici y in as uc u e includes key componen s such as gene a ion
plan s ha p oduce powe , cables and lines o ansmission, and subs a ions
wi h ans o me s and swi chgea o adjus ol age le els. Measu emen and
moni o ing echnology acks elec ici y use, wi h de ail a ying by g id le el.
Addi ional elemen s include s o age sys ems (e.g., ba e ies) o managing e-
newable luc ua ions, sma g id echnologies o be e in eg a ion o decen-
alized ene gy, and con ol cen es o coo dina ing g id s abili y.
T ansmission sys em and anspo losses
Wa e dis ibu ion sys em is he sum o he abo e-men ioned componen s.
The e a e 6000+ wa e supplie s in Ge many. The ne wo ks a e gene ally in-
dependen (no in e connec ed), bu he e a e excep ions. T anspo dis ance
a ies om app ox. 1 o 150 km. Remo e wa e dis ibu ion (“Fe nwasse e -
so gung”) e e s o he anspo a ion o wa e o e long dis ances. This is c u-
cial o many ci ies, especially o big ci ies like F ank u , Munich o S u ga .
Sys em losses in Ge many a e e y low (app ox. 6.8%) compa ed o o he
coun ies. Less han 20% is al eady good. The main design pa ame e s o he
sys em a e low, p essu e, eloci y. S ong oscilla ions in he wa e p essu e
The elec ici y ansmission sys em is made up o se e al key componen s, in-
cluding gene a ion plan s, subs a ions, and ansmission lines. The e a e mul-
iple in e connec ed g ids ac oss Eu ope, allowing o c oss-bo de elec ici y
exchange. The anspo dis ance o elec ici y can a y signi ican ly depend-
ing on he egion and in as uc u e. Sys em losses in Eu ope gene ally ange
be ween 0.99% and jus unde 4% (Council o Eu opean Ene gy Regula o s
ASBL 2025). The main ac o s in luencing he ansmission sys em a e ol age
le els, anspo dis ance, and load. Losses a e minimized h ough egula
main enance and op imiza ion o he g id. High- ol age ansmission lines a e
ypically ei he al e na ing cu en (AC) o di ec cu en (DC), wi h AC lines

Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
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F aunho e ISI | 16
can cause c acks in he
pipe, leading o highe
wa e losses. Main enance o
he sys em is he e o e e y impo an . (BMU and UBA 2017).
commonly used o sho e dis ances and DC lines mo e e icien o long
-
dis ance anspo .
S o age
S o age is used o
e en up he hou ly
o
daily
a ia ions in wa e demand
.
The
design o his acili ies mus comply wi h he DIN EN 1508. Wa e can be s o ed
in wa e closed con aine s (abo e o unde g ound). The design mus gua an-
ee ha he wa e quali y emains d inkable. One o he main issues is mic o-
bial g ow h. To a oid his, ai and wa e ci cula ion a e impo an . Sunligh
mus be a oided and insula ion mus be used o a oid empe a u e oscilla-
ions.
No e: Rese oi s o aqui e s o age go beyond he wa e supply sys em; hus,
is no included he e. Howe e , i is impo an o men ion ha hese bodies can
s o e la ge olumes ha can compensa e o seasonal imbalances in he sup-
ply/demand.
S o age in he elec ici y sec o is achie ed h ough con e sion p ocesses,
which ine i ably in ol e some le el o loss. Sho - e m s o age is p ima ily p o-
ided by pumped s o age powe plan s and ba e ies, bo h o which allow o
he empo a y s o age o elec ici y o la e use. Pumped s o age plan s a e
pa icula ly e ec i e in balancing supply and demand o e sho e ime ames,
while ba e ies o e apid esponse imes o smalle -scale s o age needs.
Long- e m s o age op ions, hough s ill e ol ing, a e c i ical o managing
luc ua ions in enewable ene gy gene a ion, such as om wind and sola .
S o age sys ems also play a i al ole in ensu ing g id s abili y and secu i y,
pa icula ly du ing blackou s, by p o iding backup powe and helping o
quickly es o e supply o a ec ed a eas.
Quali y and con amina ion
De ini ion: Wa e quali y is measu ed acco ding o physical, chemical and bi-
ological pa ame e s and is egula ed by he D inking Wa e O dinance
(T inkwV 2001)
The d inking wa e quali y may deg ade om he wa e wo k o he ap. P ob-
lems: Co osion, subs ance mig a ion, mic obial g ow h. In luencing ac o s:
su ace/ olume a io o he pipewo k, empe a u e, s agna ion imes, pH
alue. Moni o ing plays an impo an ole in he en i e chain (see compo-
nen s). (BMU and UBA 2017).
In he elec ici y sec o , he e is no de alua ion o he p oduc h ough "con-
sump ion" as i emains immedia ely usable o i s in ended pu pose. Once
elec ici y is consumed, i canno be epu posed o s o ed o u u e use wi h-
ou con e sion. Unlike o he esou ces, he e is no esidual p oduc le a e
consump ion.
Supply
Sou ces
In a adi ional
d inking wa e supply
sys em
wa e come
s ei he om s
u ace
wa e o g oundwa e (o bo h). All wa e o igina ed om p ecipi a ion. Di -
e en physical (o hyd ological) p ocesses (explained in he wa e cycle) allo-
ca ed wa e in di e en places. Wa e is enewable, bu i s enewal a e can
a y immensely. The lis below gi es he esidence ime depending on he
sou ce. [a e age alues]
- Wa e in he a mosphe e: 9 days ( an de En and Tuinenbu g 2017)
- Su ace wa e : 2.5 weeks (Oki and Kanae 2006)
- G oundwa e : depending on dep h p o ile and geology he esidence
ime can a y om days, yea s, cen u ies and e en millennia (The g oundwa e
p ojec 2020)
The esidence ime equals he s o age olume o he body o e he wa e low.
No e: The use o al e na i e sou ces has gained popula i y in ecen decades.
In some pa s o he wo ld, sea-, ain- and was ewa e can be ea ed, used
and dis ibu ed as d inking wa e .
The elec ici y supply sec o elies on a di e se mix o enewable and non
-
enewable ene gy sou ces, each wi h dis inc p ope ies and pe o mance
cha ac e is ics. Renewable sou ces like wind, sola , hyd o, and biomass p o ide
en i onmen ally iendly al e na i es bu can be in e mi en , equi ing backup
solu ions o s o age sys ems. Non- enewable sou ces, such as coal, na u al
gas, and nuclea , o e mo e s able and eliable powe gene a ion, hough hey
o en come wi h en i onmen al and sus ainabili y conce ns. Despi e hei di -
e ing cha ac e is ics, all hese ene gy sou ces ul ima ely deli e he same
p oduc wi h indis inguishable quali y in o he g id.
Seasonali y and in e mi ency
Rain pa e ns a y seasonally and
be ween yea s.
The phenomena “El
Niño
”
and “The Niña” a ec p ecipi a ion pa e ns o e he wo ld.
The seasonali y and in e mi ency o supply p esen signi ican challenges in
he elec ici y sec o . Renewable ene gy sou ces, such as wind and sola , do
no o e cons an powe gene a ion po en ial, as hei ou pu depends hea ily
on wea he condi ions and luc ua es h oughou he day. His o ically, powe
p oduc ion ollowed o al demand, as i was mainly con olled by con en-
ional, dispa chable sou ces. Today, howe e , con ollable gene a ion ollows
he esidual load, which is he di e ence be ween o e all demand and he luc-
ua ing ou pu om enewable ene gy sou ces. This shi equi es a mo e lex-
ible and esponsi e g id o balance supply and demand e icien ly.
P edic ion
De e mina ion by hyd ological models o su ace wa e . Hyd ogeological
models, geophysical in es iga ions, and o he me hods o g oundwa e
(Balsub amanian 2007).
Impo an ac o s: clima e and land use changes.
Supply p edic ion in he elec ici y sec o elies on accu a e load and enewa-
ble ene gy o ecas s. In luencing ac o s include wea he condi ions, sho -
e m demand luc ua ions, and long- e m ac o s like clima e change and po-
li ical decisions.
Decen alisa ion
A sys em can become decen al i i can ha ness
ain
wa e ,
ea and euse
g eywa e o use he wa e om a local well. Common p ac ices a e he use o
cis e ns o collec ainwa e and apply i whe e a lesse quali y han d inking
wa e is allowed, e.g. oile lushing.
The decen aliza ion o supply is inc easing wi h he ise o smalle sys ems in
la ge-scale dis ibu ion. Decen alized concep s a e being implemen ed a
lowe g id le els, whe e addi ional measu emen and con ol echnologies
a e becoming mo e ele an . This end also includes he g owing p esence
o smalle gene a ion plan s in p i a e owne ship, d i en by e o s owa d
sel -su iciency. As mo e indi iduals and communi ies gene a e hei own en-
e gy, he o e all s uc u e o he elec ici y g id becomes mo e dis ibu ed
and lexible.
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Demand
Consump ion pa e ns
Speci ic d inking wa e consump ion in Ge many is 121 li es pe capi a pe
day o households and small businesses (BMU and UBA 2017).
Elec ici y consump ion pa e ns luc ua e h oughou he day, wi h demand
ypically peaking in he mo ning and e ening due o esiden ial and comme -
cial ac i i y. In Ge many, S anda d Load P o ile (SLP) cus ome s exhibi his
ypical consump ion pa e n, while Regis e ed Load Measu emen (RLM) cus-
ome s, such as indus ial use s, may show mo e a iable demand based on
p oduc ion schedules.
Sho - and long- e m demand esponse
Fo ecas s go hand in hand wi h popula ion ends. Mee ing he supply in he
sho e m is gene ally unp oblema ic, since one can simply ex ac mo e wa e
om he ese oi o he aqui e . Howe e , i he wa e u ilisa ion index (a.k.a.
wa e s ess), which equals wa e wi hd awals (demand) o e enewable wa e
supply (UBA 2022) exceed a c i ical poin , causing ecosys em deg ada ion, de-
mand managemen o supply augmen a ion measu es (i.e. in as uc u e p o-
jec s) mus be aken.
Sho - and long- e m demand esponse s a egies a e essen ial o managing
elec ici y consump ion. In he sho e m, o co e demand, powe plan s can
be amped up, edispa ch can be used, and demand esponse po en ial can
be ac i a ed i a ailable. In he medium and long e m, solu ions include ex-
panding powe lines and gene a ion capaci y, inc easing ene gy e iciency, and
educing o e all ene gy demand. Howe e , new consume s wi h high ou pu s
and unique cha ac e is ics, such as elec ic ehicles (EVs) and hea pumps, pose
addi ional challenges in balancing supply and demand due o hei a iable
consump ion pa e ns and g owing ma ke p esence.
Digi al solu ions
Sma me e ing can play a ole Digi al solu ions in he demand sec o op imize elec ici y consump ion
h ough ICT, enabling eal- ime p ice signal ansmission and consump ion ad-
jus men s. Sma me e s and sma g ids p o ide de ailed insigh s in o ene gy
use, imp o ing demand esponse. Decen alized ene gy managemen sys ems
allow p osume s o manage bo h gene a ion and s o age, enhancing lexibil-
i y. The in eg a ion o elec ic ehicles, hea pumps, and home ene gy s o age
helps coo dina e ac i i ies based on g id condi ions and p icing signals. Finally,
AI and machine lea ning p edic consump ion ends and op imize ene gy use,
o e ing ad anced demand-side managemen solu ions.
4.2 Ma ke aspec s
In e ms o ma ke aspec s, he wa e sec o is a na u al monopoly while he elec ici y sec o in
bo h Ge many and he EU is a ully libe alized and unbundled ma ke . The p ice o ma ion in he
wa e sec o is based on he cos eco e y p inciple, wi h p ices in luenced by ac o s like se lemen
densi y, geog aphical loca ion, and hyd ology. In he elec ici y sec o , p ice o ma ion is based on
he me i o de , wi h p ices inc easingly in luenced by he ise in enewable ene gy gene a ion and
decen alised PV sys ems (see Table 2).
Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
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Table 2: Compa ison o ma ke aspec s o wa e and elec ici y sec o
Wa e sec o Elec ici y sec o
Ma ke aspec s
Design
Type
Na u al monopoly (BMU and UBA 2017) The elec ici y ma ke is ully libe alized and unbundled, wi h legal sepa a ion
be ween ne wo ks and p o ide s, o e ing a complex ange o p oduc s and
ading pla o ms. While new p oduc s, pa icula ly ela ed o lexibili y, a e
expec ed o eme ge in he u u e, he e a e cu en ly no dedica ed pla o ms
o ma ke ing hese inno a ions.
In ol ed s akeholde s
Wa e supplie
and compe en au ho i ies in change o egu
la ing he se ice
(wa e p ice and ees, wa e quali y, e c.).
Addi ionally, en i onmen al agencies and wa e o ices may also ha e in lu-
ence on e.g. g an ing wa e igh s, expanding in as uc u e o o he ype o
measu es. O he ac o s may also be in ol ed in he managemen o he ca ch-
men a ea (“T inkwasse einzugsgebie ”)
The elec ici y ma ke in ol es a wide ange o s akeholde s, including gene -
a o s, g id ope a o s, elec ici y ade s, end cus ome s, egula o y au ho i ies,
and policymake s. Wi h he ise o decen aliza ion, new pa icipan s and o ms
o in ol emen ha e eme ged, such as sel -supply, enan elec ici y, commu-
ni y-based ene gy supply, and ci izen ene gy companies. This shi is os e ing
g ea e independence h ough communi y o ganiza ions and se ice p o id-
e s, eshaping he landscape o ma ke pa icipa ion.
Le el o p i a isa ion
Wa e supplie : public s. p i a e (AG, GmbH, KG)
Elec ici y supplie : public s. p i a e (AG, GmbH, KG)
P ice o ma ion
P inciple & geog aphical scope
Cos eco e y p inciple acco ding o he Eu opean Wa e F amewo k Di ec i e.
This means, ha he ac ual cos s a e conside ed (no subsidies).
Fac o s a ec ing p ice include se lemen densi y, geog aphical condi ions, hy-
d ology, opog aphy, e c. This means ha he wa e supply companies incu
di e en le els o cos s, which mus be co e ed by locally applicable wa e
p ices.
In 2022, an a e age Ge man household wi h a consump ion o 93 m3 pe yea
will pay € 262,39 o d inking wa e . € 91,97 o he basic ee (independen o
consump ion) and € 1,83 pe e e y cubic me e (DESTATIS 2023).
Fo public wa e supplie s, d inking wa e p ices a e egula ed by he munici-
pal cha ging law (“Kommunale Gebüh en ech ”). Cos eco e y, equal ea -
men and equi alence p inciples apply. Fo wa e supplie s unde p i a e law
he an i us law (“Ka ell ech ”) applies. The same cos eco e y p inciple ap-
plies, only in his case he p ices a e compa ed wi h wa e supplie s ope a ing
unde simila condi ions, and in case addi ional measu es a e equi ed, a
p ice inc ease can be jus i ied and he e i ying au ho i y may allow i (BMU
and UBA 2017).
Elec ici y p ice o ma ion in Ge many is based on he me i o de p inciple on
he elec ici y exchange, whe e powe plan s a e dispa ched acco ding o hei
a iable cos s. Wi hin he na ional bidding zone, s anda dized p ices ensu e
compe i ion among ma ke pa icipan s, while physical connec ions o o eign
coun ies allow c oss-bo de elec ici y ading and in eg a ion in o wide Eu-
opean ne wo ks. Howe e , physical g id es ic ions a e only accoun ed o
downs eam h ough edispa ch measu es, which help o s abilize he sys em
when bo lenecks occu .
As he sha e o enewable ene gy con inues o g ow, pa icula ly wi h he ex-
pansion o decen alized PV sys ems and p osume s, he simul anei y o gen-
e a ion leads o mo e p onounced p ice luc ua ions and an inc easing in lu-
ence o enewables on ma ke dynamics.
Alloca ion
App oxima ely 75% o he ac ual cos s a e ixed and 25% a e a iable. How-
e e , in eali y oughly a qua e o cha ged ees is ixed and h ee-qua e s
a iable. (VkU 2017)
The alloca ion o elec ici y cos s is composed o p ocu emen and sales, axes,
alloca ions, and p o i , all shaping end consume p ices. T adi ionally, ixed e-
ail elec ici y p ices ha e p o ided s abili y bu lacked lexibili y. Wi h he in-
oduc ion o dynamic a i s and p ice componen s, p ices can now be e e-
lec eal- ime ma ke condi ions, encou aging mo e e icien consump ion.
P ice Elas ici y
The p ice elas ici y o esiden ial wa e consump ion is ela i ely low, abou
4,2% in he sho e m and 13% in he long e m (Schleich and Hillenb and
2009, 2019).
In he household sec o , elec ici y demand emains la gely un esponsi e o
p ice changes in he sho e m (Cse eklyei 2020). Howe e , s udies indica e
ha indus ial consume s end o eac mo e sensi i ely, e en on an hou ly
basis (Hi h e al.). Ex e nal ac o s such as popula ion densi y, empe a u e,
and policy measu es also play a ole in shaping elec ici y consump ion.
4.3 Regula o y aspec s
Rega ding egula o y aspec s, bo h sec o s a e egula ed by EU laws such as he Eu opean Wa e
F amewo k Di ec i e and he Renewable Ene gy Sou ces Ac . They also ha e na ional laws in place.
In he wa e sec o , he Fede al Wa e Ac (Wasse haushal sgese z - WHG) and na ional guidelines
om DVGW & DIN apply, while in he elec ici y sec o , he Ene gy Indus y Ac , Combined Hea
Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
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F aunho e ISI | 19
and Powe Ac , and Building Ene gy Ac a e ele an . The wa e sec o also has egional laws in he
o m o municipal bylaws on compulso y connec ion and use (see Table 3).
Table 3: Compa ison o egula o y aspec s o wa e and elec ici y sec o
Wa e sec o Elec ici y sec o
Regula o y aspec s
Laws
EU laws
Eu opean Wa e F amewo k Di ec i e (EU-WFD): Ongoing implemen a ion and
upda ing o he necessa y managemen plans and p og ammes o measu es
o each good s a us in all wa e bodies in he Eu opean Union. Speci ic imple-
men a ion s eps a e ca ied ou e e y 6 yea s. Each cycle co esponds o a
sepa a e managemen pe iod. The ede al s a es a e p ima ily esponsible o
implemen ing he WFD.
U ban Was ewa e T ea men Di ec i e (EU-UWWTD): Aims o p o ec he en-
i onmen om ad e se e ec s o was ewa e discha ges om u ban sou ces
( owns o e 2.000 inhabi an s) and speci ic indus ies. The implemen a ion
mus be epo ed e e y 2 yea s.
D inking Wa e O dinance: Requi emen s o d inking wa e quali y. Is alid
h oughou he en i e wa e supply sys em. Besides municipal and ede al s a e
au ho i ies in change o moni o ing he d inking wa e quali y, his o dinance
is also alid o houses, since hei ins alla ions also belong o he supply sys-
em (BMU and UBA 2017).
O dinance on wa e euse in ag icul u e: This o dinance se s he minimum wa-
e quali y s anda ds o wa e euse in he ag icul u e. Is he newes o he lis ,
alid in he Membe S a es o he Eu opean Union since 2023.
The mos impo an EU legisla ion shaping he ene gy ma ke includes:
The Renewable Ene gy Di ec i e (RED) es ablishes he amewo k o he p o-
mo ion o enewable ene gy ac oss he Eu opean Union, aiming o inc ease
he sha e o enewable ene gy in he EU's ene gy mix. I s goal is o ensu e a
sus ainable, g eenhouse gas-neu al ene gy ansi ion by se ing binding e-
newable ene gy a ge s o each membe s a e and p omo ing he in eg a ion
o enewable sou ces such as wind, sola , and biomass in o he ene gy ma ke .
The Eu opean Elec ici y Ma ke Design (EMD) aims o c ea e a ully in eg a ed
and compe i i e in e nal elec ici y ma ke in he EU. I se s ules o elec ici y
ading, sys em ope a ion, and he in eg a ion o enewable ene gy sou ces,
while also ensu ing secu i y o supply, ai compe i ion, and p ice anspa ency
ac oss bo de s. The EMD acili a es c oss-bo de elec ici y exchanges, op i-
mizes he use o exis ing in as uc u e, and suppo s he de elopmen o a
lexible, deca bonized ene gy sys em.
Di ec i e 2012/27/EU on ene gy e iciency se s binding measu es o help he
EU achie e i s ene gy e iciency a ge s. I ou lines equi emen s o membe
s a es o es ablish na ional ene gy e iciency ac ion plans and implemen s a -
egies o educe ene gy consump ion. The di ec i e ocuses on imp o ing en-
e gy pe o mance ac oss a ious sec o s, such as buildings, anspo , and in-
dus y, and includes measu es like ene gy audi s, ene gy managemen sys-
ems, and e iciency obliga ions o u ili ies.
Na ional laws
Wa e esou ces ac
(
“Wasse haushal sgese z
” ode
WHG
)
:
P o isions on he
p o ec ion and u ilisa ion o su ace wa e s and g oundwa e , as well as egu-
la ions on he de elopmen o wa e bodies, wa e managemen planning and
lood p o ec ion.
Speci ic ules o he ede al s a es a e laid down in s a e wa e laws.
Besides, guidelines om DVGW & DIN may apply o echnical aspec s like
pipewo k ma e ials, ope a ion and ins alla ion o sys ems, main enance p ac-
ices, moni o ing o wa e quali y, e c.
Na ional laws play a key ole in egula ing he Ge man ene gy ma ke
.
The Ene gy Indus y Ac (EnWG) has go e ned he unc ioning o he Ge man
ene gy ma ke since 1935, aiming o ensu e a secu e, a o dable, consume -
iendly, e icien , en i onmen ally sus ainable, and g eenhouse gas-neu al
ene gy supply o he public. I ocuses on egula ing and ensu ing e ec i e,
undis o ed compe i ion h ough mechanisms like no i ica ion and au ho iza-
ion obliga ions, unbundling ( o ensu e anspa ency and non-disc imina ion),
and g id egula ion and access. The Fede al Ne wo k Agency holds powe s o
en o ce hese ules, which a e u he de ailed in a ious o dinances such as
he NAV, S omNEV, and S omNZV.
The Combined Hea and Powe Ac (KWKG) p omo es he simul aneous, e i-
cien gene a ion o hea and elec ici y, suppo ing sec o coupling and en-
hancing he in eg a ion o ene gy sys ems.
The Building Ene gy Ac (GEG) es ablishes equi emen s o he mos e icien
use o ene gy in buildings, including s anda ds o elec ici y, hea ing, and
cooling, along wi h egula ions o hea ing and ai condi ioning echnologies.
The Renewable Ene gy Sou ces Ac (EEG) egula es he p i ileges, obliga ions,
and emune a ion o he gene a ion and u iliza ion o elec ici y om enew-
able ene gy sou ces. I s goal is he ans o ma ion owa ds a g eenhouse gas-
neu al elec ici y supply, en i ely based on enewable ene gies.
Regional laws
Municipal bylaws („Kommunale Sa zungen“), e.g. on compulso y connec ion
and use.
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5 Iden i ica ion o concep s
Based on he de ailed analysis o he elec ici y and wa e sec o s, we ha e decided o u he ana-
lyse he ollowing h ee concep s:
Sma Me e s and Dynamic P icing Schemes: The u iliza ion o sma me e s is e iden in bo h
sec o s, especially in elec ici y whe e i 's c ucial o managing demand- esponse sys ems and con-
olling he ime o echa ging o ehicle cha ging s a ions. In he wa e sec o , sma me e ing can
p o ide aluable da a o managing wa e demand. Addi ionally, dynamic p icing schemes, which
a e mo e p e alen in he elec ici y sec o , can be explo ed o he wa e sec o o incen i ize e i-
cien wa e usage and manage demand.
Legal Ins umen s (Cap-and- ade schemes and Wa e Sa ing obliga ion schemes): The elec-
ici y sec o ope a es unde a ious legal ins umen s such as he Renewable Ene gy Sou ces Ac
and he Ene gy Indus y Ac . Simila legal ins umen s in he wa e sec o like he Eu opean Wa e
F amewo k Di ec i e and he Wa e Resou ces Ac a e in place. The explo a ion o cap-and- ade
schemes, which ha e been success ul in managing emissions in he ene gy sec o , could be a po-
en ial solu ion o managing wa e esou ces. Simila ly, wa e sa ing obliga ion schemes could
possibly en o ce mo e e icien use o wa e .
Ex ended Sec o Coupling: Bo h sec o s a e expe iencing inc easing decen aliza ion. In he elec-
ici y sec o , his is e iden wi h smalle sys ems in la ge-scale dis ibu ion and p i a e owne ship
o inc easingly smalle gene a ion plan s. The wa e sec o shows po en ial o decen aliza ion
h ough p ac ices such as ainwa e ha es ing, g eywa e euse, and he use o local wells. Explo -
ing ex ended sec o coupling in hese e ol ing amewo ks can po en ially enhance he esilience
and e iciency o bo h sec o s.
These concep s we e chosen based on hei po en ial o add ess key challenges in bo h sec o s
such as managing supply and demand, educing losses, and imp o ing sys em e iciency and esil-
ience. Fu he mo e, hey o e oppo uni ies o c oss-sec o lea ning and inno a ion.

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6 T ans e abili y o concep s
This pa o he epo del es in o he po en ial applica ion o s a egies om he elec ici y o he
wa e sec o . I conside s how sma me e s, dynamic p icing schemes, and legal ins umen s migh
be used in his new con ex . I also explo es he idea o sec o coupling, which in eg a es ene gy,
wa e , and ma e ial lows a a neighbou hood le el.
6.1 Sma me e s and dynamic p icing schemes
The ene gy ansi ion is no he only de elopmen induced and igge ed by clima e change; he
inc easingly ense si ua ion o wa e sca ci y is also no ewo hy. Al e ed p ecipi a ion pa e ns, hea -
wa es, and escala ing d y spells leading o d ough s a e becoming mo e equen and mus be
add essed mo e in ensi ely in he u u e. Al hough app oaches like sma me e s and dynamic p ic-
ing schemes a en’ new concep s in gene al, he implemen a ion in Ge many is s ill in an ea ly phase
and no obliga ed o all cus ome s. Ne e heless, hei po en ial in he elec ici y sec o has been
ecognized. The ollowing sec ion aims o show use cases in which hese app oaches can be ans-
e ed o he wa e sec o .
Sma me e s
Sma me e s a e ad anced ene gy me e s ha eco d eal- ime elec ici y, gas, o wa e usage
and communica e his in o ma ion di ec ly o u ili y p o ide s. Unlike adi ional me e s, sma
me e s enable wo-way communica ion, allowing o emo e eadings, sys em moni o ing, and
upda es.
Key bene i s include accu a e billing, ene gy usage insigh s o consume s, and imp o ed g id
managemen o p o ide s. They also suppo in eg a ion wi h enewable ene gy sou ces and
acili a e dynamic p icing, encou aging ene gy use du ing o -peak hou s. By p omo ing e i-
ciency and sus ainabili y, sma me e s could be an essen ial pa o mode n ene gy in as uc-
u e.
Dynamic p icing
Dynamic p icing is a lexible p icing s a egy whe e he cos o goods o se ices luc ua es based
on eal- ime supply and demand condi ions. In he ene gy sec o , dynamic p icing adjus s elec-
ici y a es h oughou he day o e lec g id demand and ene gy a ailabili y.
This app oach incen i izes consume s o shi ene gy usage o o -peak hou s, educing s ain on
he g id and lowe ing ene gy cos s. Dynamic p icing bene i s u ili ies by balancing demand and
suppo ing enewable ene gy in eg a ion while helping consume s sa e money h ough in-
o med ene gy managemen . I ’s a key ool o p omo ing ene gy e iciency and sus ainabili y.
6.1.1 Gene al unc ioning in elec ici y sec o
Sma me e s a e in elligen measu ing sys ems and will be a cen al componen o a digi al ene gy
sys em in he u u e. They consis o a digi al elec ici y me e and a communica ion uni , allowing
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eal- ime da a ansmission be ween consume s, ene gy supplie s, ne wo k ope a o s and o he
se ice p o ide s. Thus, hey o m he basis o a powe ul sma g id, whe e obus digi al in a-
s uc u e is a p e equisi e o in eg a ing a g owing sha e o enewable ene gies.1
One signi ican cha ac e is ic o wind and sola ene gy is hei luc ua ing supply, esul ing in a
highly a iable gene a ion p o ile h oughou he day. Con en ional and con ollable powe plan s
canno simply ollow he p edic ed demand as be o e bu mus co e he esidual load, he di e -
ence be ween demand and enewable gene a ion. Consequen ly, baseload powe plan s a e dis-
placed and he need o lexible powe plan capaci y inc eases.
The al e ed s uc u e o he powe plan lee no only leads o mo e p oduc ion o g een elec ici y
bu also o mo e ola ile elec ici y p ices. Due o ma ginal cos s close o 0 €/MWh he elec ici y
p ice d ops signi ican ly du ing hou s o high enewable gene a ion and can e en become nega i e.
Demand Response and Demand Side Managemen a e ools on he consume side o espond o
co esponding p ice signals om he ma ke . P ocesses can be shi ed o hou s o lowe elec ici y
p ices o s o age can be cha ged o discha ged based on p ice signals o se e in lexible p ocesses.
This leads o a educ ion in bo h CO2 emissions and elec ici y p ocu emen cos s.
Me e ed capaci y measu emen is al eady an es ablished s anda d o la ge consume s, whe e, in
addi ion o an ene gy cha ge o consumed ene gy, a capaci y cha ge mus be paid as well. The
maximum demand peak plays a c ucial ole in calcula ing g id ees, as i se es as a measu e o
equi ed ne wo k capaci y and hus u u e expansion needs.
In he u u e sma me e s can also p o ide households wi h his p ice in o ma ion, enabling lexible
consump ion in his sec o as well. Thus, elec ici y-in ensi e p ocesses such as ope a ing washing
machines, hea pumps, o cha ging elec ic ehicles (EVs) can be shi ed o o -peak hou s. In his
way he g id will be elie ed and can p e en expensi e edispa ch measu es.
Al hough sma me e s a e an essen ial componen o new a i op ions, including Real-Time P ic-
ing, end consume s mus be able o sensibly adjus hei consump ion alongside he o e ing o
ime-dependen a i s by elec ici y supplie s. Technological and inancial ba ie s o he a ailabili y
o lexible echnologies, as well as in o ma ional ba ie s and adjus men e o s, can hinde a p ice-
induced lexibili y o households. Ne e heless, sma me e s can ini ially p omo e anspa ency and
awa eness o one's own consump ion and cos s.
6.1.2 T ans e abili y o wa e sec o
Al hough wa e is a u ili y anspo ed h ough pipes and sha es simila i ies in measu ing consump-
ion olumes and billing, a s aigh o wa d ans e o he mechanisms ou lined abo e is no eadily
easible o a ious easons.
While in he elec ici y sec o , demand and p oduc ion mus be always balanced o g id s abili y
easons, his s ong empo al dependence does no exis o wa e . In con as , wa e can be s o ed
much mo e easily in ese oi s, owe s and anks. E en he in as uc u e i sel can se e as s o age
in he sho e m. Due o hese op ions, demand and supply don' ha e o mee each o he as
s ic ly as in elec ici y. Fluc ua ions appea on bigge ime scales and he e o e mus be add essed
di e en ly. Ne e heless, me e ing plays a c ucial ole in moni o ing and p icing wa e consump ion
also.
1 Bundesne zagen u , Messein ich ungen/In elligen e Messsys eme, h ps://www.bundesne zagen u .de/DE/Vpo al/Ene gie/Me e ing/s a .h ml
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The use o sma me e s in he wa e sec o is s ill a e and simple wa e me e s and annual billing
a e he s anda d. Whe e hey a e used, hey mainly se e o simpli y and au oma e me e eading.
The main bene i s o sma me e s (Sma Wa e Magazine) will be discussed below.
Me e ing & Billing
Sma me e ing echnologies o e eal- ime, high- esolu ion moni o ing o wa e consump ion,
p o iding use s wi h de ailed insigh s in o hei usage pa e ns. This allows consume s o iden i y
ine iciencies and adjus hei habi s. Inc eased billing equency made possible by sma me e s
gi es use s imely eedback on hei wa e use, encou aging mo e mind ul consump ion. Also, he
p ocesses o eading wa e me e s by he u ili y p o ide a e simpli ied. Al hough sma me e ing
does no play a c ucial ole wi hin he wa e sec o o now, he e a e some examples o s akehold-
e s ha al eady implemen ed hem o digi alize and simpli y he me e ing p o. Fo example, in
Ge many he e a e Gelsenwasse (Gelsenwasse AG; DVGW) and he Wasse zweck e band Inn-
Salzach (Ch is ian Zenge e al. 2019), whe e in Ame ica San Deigo aims o deploy sma me e s o
he whole ci y (Inside San Diego) .
Addi ionally, sma me e s enable apid de ec ion o leaks and anomalies in he wa e supply ne -
wo k, allowing o quick main enance and educing wa e loss. This p oac i e app oach conse es
esou ces and cu s cos s o u ili y p o ide s.
Awa eness
Al hough p ice-d i en con ol o wa e consump ion h oughou he day does no ha e he same
ele ance as wi h elec ici y, sma me e s can also c ea e anspa ency and awa eness he e ini ially.
I can be unde s ood how much wa e a ba h ub o washing machine equi es and encou age a
mo e a ional wa e use. By econside ing ce ain ou ines and unconscious beha iou al pa e ns,
wa e demand and cos s can be in luenced (Sønde lund e al. 2016; Tian and Chen 2022), which is
ele an especially o he ac ha many people unde es ima e hei pe sonal wa e consump ion
(Seelen e al. 2019).
In addi ion, i is possible o incen i ize he educ ion o wa e by p o iding in o ma ion on he
cu en si ua ion o wa e supply wi hou changing p ices. Fo example, a “d ough indica o ” could
show he s a us o he local wa e supply and he se e i y o he d ough . This would also be pos-
sible wi hou indi idual sma me e ing sys ems bu equi es a di e en channel o in o ma ional
low. Raising public awa eness o wa e sho ages can mo i a e people o olun a ily educe hei
wa e consump ion, as hey a e mo e likely o ac when hey unde s and he impac on he com-
muni y. By combining a d ough indica o wi h p ac ical wa e -sa ing ips, esponsible beha iou
can be encou aged wi hou elying on inancial incen i es. Such non-p ice measu es a e pa icula ly
e ec i e in egions whe e p ice adjus men s a e di icul o implemen o poli ically sensi i e.
Ta i design
Wa e is essen ial o basic needs like hygiene, cooking, and cleaning, making a la ge p opo ion o
i s demand ela i ely inelas ic o p ice changes, excep when p ices each a ce ain h eshold. This
cha ac e is ic should be conside ed when adjus ing wa e p ices (Schleich and Hillenb and 2009).
The in oduc ion o sma me e s acili a es mo e equen billing and enables inno a i e p icing
models, such as p og essi e p icing h ough Inc easing Block Ta i s (IBT). In his sys em, wa e is
p iced in ie s, wi h he base a e co e ing a de ined essen ial olume, and highe a es applied o
usage beyond his le el (Dale Whi ing on e al. 2002). This app oach encou ages wa e conse a-
ion and discou ages excessi e use. Howe e , i ’s impo an o inco po a e social ac o s – like
household size and income – and o ensu e access o wa e as a basic human igh a an a o dable
cos (Ba ne e al. 2020). The e ec i eness o IBTs depends on he iming o billing cycles (mon hly,
annually, e c.) and he design o he p icing ie s, which can help achie e a ious policy goals. Sma
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me e s play a c ucial ole in accu a ely acking and billing usage o e ime. Digi al da a ansmis-
sion h ough sma me e s also allows o he lexibili y o implemen di e en a i op ions in he
sho e m. Fo ins ance, a i s can be adjus ed based on wea he condi ions o o ecas s o an ic-
ipa ed d ough s and he e o e di ec ly coupled wi h a d ough indica o as men ioned abo e. How-
e e , he e a e challenges wi h block a i s. Policymake s mus ca e ully conside he s uc u e o
he blocks in e ms o olume and p ice o balance a o dabili y, economic e iciency, social jus ice,
and conse a ion goals. This equi es u he esea ch and a ho ough e iew o exis ing s udies.
Con e sely, eal- ime p icing, which is al eady an op ion in he elec ici y sec o , seems no sui able
o wa e managemen . Unlike elec ici y, wa e supply does no expe ience s ong sho - e m luc-
ua ions, and sho ages de elop o e longe pe iods, equi ing di e en managemen app oaches.
While highe wa e p ices may ha e a limi ed impac on educing consump ion due o i s inelas ic
na u e, in o med consume s a e gene ally mo e esponsi e o p ice changes. This aises ques ions
abou he e ec i eness o p icing as a ool o wa e conse a ion and whe he al e na i e s a e-
gies, such as awa eness campaigns and p o iding mo e in o ma ion, could achie e simila esul s
wi h less e o .
Excep om p o iding gene al in o ma ion on a communi y wide le el like sca ci y indica o s all
measu es men ioned abo e equi e sma me e ing. This change in me e ing s uc u e a ises he
ques ion o easibili y. The cos s and wide a ailabili y o such me e ing sys ems a e signi ican ac-
o s o conside , as he implemen a ion o sma me e ing equi es subs an ial ini ial in es men in
in as uc u e and echnology. Addi ionally, he widesp ead adop ion o hese sys ems depends on
he eadiness o he local u ili ies and he a o dabili y o consume s. The ins alla ion and main e-
nance cos s, along wi h he need o obus da a managemen and secu i y p o ocols, may pose
challenges o some egions o s akeholde s. Fu he mo e, ensu ing equi able access o sma me-
e ing echnologies ac oss di e en socio-economic g oups is c ucial o a oid c ea ing dispa i ies
in wa e managemen . Despi e hese challenges, he long- e m bene i s in e ms o wa e conse -
a ion, ope a ional e iciency, and cos sa ings make he adop ion o sma me e ing a wo hwhile
conside a ion.
Figu e 2: Sma Me e s and Dynamic P icing – Summa y and Impac
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6.3 Ex ended sec o coupling
Sec o coupling wi hin he ene gy sec o
Sec o coupling is he in eg a ion o a ious ene gy sec o s, such as elec ici y, hea ing, cooling,
and anspo a ion, o c ea e a mo e e icien and sus ainable ene gy sys em. By connec ing hese
sec o s, ene gy p oduced in one sec o can be used ac oss o he s, op imizing o e all ene gy use.
Fo example, su plus enewable elec ici y om sola o wind powe can be used o cha ge EVs
o ope a e hea pumps o building hea ing. This app oach enhances ene gy lexibili y, suppo s
he use o enewable ene gy, and accele a es he ansi ion o a low-ca bon, sus ainable ene gy
u u e.
6.3.1 Gene al unc ioning in elec ici y sec o
Sec o coupling e e s o he in eg a ion and in e connec ion o di e en ene gy sec o s, such as
elec ici y, hea ing, cooling, and anspo a ion, o c ea e a lexible, e icien , and sus ainable ene gy
sys em. In he con ex o he ene gy ansi ion, sec o coupling is a key echnology o maximize he
use o enewable ene gy while simul aneously educing CO2 emissions. The p ima y unc ion o
sec o coupling is o deli e ene gy whe e i can be used mos e icien ly and sus ainably, ans e -
ing excess ene gy om one sec o o o he s. By connec ing he sec o s, ene gy p oduced in one
can be u ilized ac oss o he s, enabling be e ene gy managemen (IRENA Coali ion o Ac ion
2022). By using enewable ene gy ac oss a ious sec o s, he dependency on ossil uels is de-
c eased. This is pa icula ly impo an in a eas like anspo a ion and indus y, which ha e adi-
ionally elied hea ily on oil and gas. Also hea ing s ill elies mos ly on ossil echnologies. Sec o
coupling can signi ican ly con ibu e o achie ing clima e goals h ough he adop ion o EVs and
he use o g een hyd ogen in indus y, bo h o which help deca bonize hese sec o s. A he same
ime educed ene gy losses can lead o cos sa ings and sec o coupling can c ea e new businesses
oppo uni ies by u ilizing unused po en ials o se ices and lexibili y wi hin sma g id in as uc-
u e and new echnologies.
Sec o coupling enables be e in eg a ion o enewable ene gy in o he exis ing ene gy in as uc-
u e. While he elec ici y sec o plays a cen al ole in p o iding clean ene gy, o he sec o s such
as hea ing and anspo can also bene i om enewable ene gy use. Fo ins ance, elec ici y gen-
e a ed om wind o sola ene gy can be used o powe hea pumps o hea ing o cooling buildings.
This no only imp o es he ca bon oo p in o he hea ing ma ke bu also educes he demand o
ossil uels. This app oach allows enewable ene gy o be used mo e e ec i ely ins ead o being
was ed. Ano he impo an ea u e o sec o coupling is he inc eased lexibili y i p o ides o he
ene gy sys em. As al eady men ioned, enewable ene gy p oduc ion is o en ola ile, as i depends
on wea he condi ions and ime o day. Th ough sec o coupling, lexible loads can be u ilized o
balance luc ua ing p oduc ion. Fo example, EVs can ac as lexible s o age: hey can be cha ged
when elec ici y p oduc ion is high (e.g., du ing sunny o windy pe iods) and discha ged du ing
imes o highe demand. This helps educe he s ain on he elec ici y g id and imp o e he s abili y
o he en i e sys em.
In conclusion, sec o coupling is a i al app oach o ans o ming he ene gy sys em in o one ha
is mo e e icien , lexible and sus ainable. I no only enhances he use o enewable ene gy bu also
con ibu es o educing CO2 emissions by eplacing ossil uels ac oss a ious sec o s. As echnol-
ogies like EVs, hea pumps, and hyd ogen solu ions con inue o de elop, he ole o sec o coupling
will become e en mo e signi ican , playing a c ucial pa in he global ene gy ansi ion.

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6.3.2 T ans e abili y o wa e sec o
Besides o he coupling o di e en sec o s o ene gy demand, he in eg a ion o he wa e sec o
can o e a ans o ma i e expansion o ene gy sys ems, combining ene gy, wa e , and esou ce
managemen o maximize e iciency and sus ainabili y. Wa e plays a c i ical ole in his ex ended
sec o coupling due o i s local a ailabili y and i s mul i unc ional uses ac oss ene gy and esou ce
sys ems. In addi ion o i s main pu pose o wa e supply o classical use, i can be u ilized in a ious
ways o be pa o a b oadened ene gy in as uc u e. By inco po a ing wa e sys ems in o ene gy
planning and he o he way a ound, mo e inno a i e app oaches can be de eloped. This in e con-
nec ed sys em enhances bo h ene gy and wa e lows, op imizing o e all pe o mance while sup-
po ing clima e esilience.
G een Roo s
A ligh weigh and indi ec in eg a ion o wa e can be achie ed by implemen ing g eening
measu es, such as g een oo s and walls. Besides bene i s like imp o ed ainwa e e en ion and
biodi e si y, enhancemen o wa e and ai quali y he in eg a ion o ege a ion in o building in a-
s uc u e also leads o lowe empe a u es and educes he need o addi ional cooling (Sha ique
e al. 2018). Especially in u ban a eas he hea island e ec can be educed and help o enhance
u ban cooling and esilience o clima e change. The use o g ey wa e as esou ce o i iga ion
maximizes i s u iliza ion and helps manage wa e supply, pa icula ly du ing pe iods o low ain all
(Schmi z e al. 2018; Hochschule Weihens ephan-T iesdo 2016).
PV Cooling and Cleaning
Pho o ol aic sys ems, cen al o enewable ene gy s a egies, lose e iciency a highe empe a u es,
educing hei powe ou pu by app oxima ely 0.4–0.5% pe deg ee Celsius abo e 25°C. (P udh i
and Chai anya Sai 2012) To mi iga e his, cooling s a egies a e employed, including bo h passi e
and ac i e me hods. In ex end o he cooling e ec s on buildings empe a u es, he ins alla ion o
PV can bene i om g eening measu es as well. This passi e cooling akes ad an age o he e ap-
o a i e cooling e ec s o ege a ion and he eby imp o ing module e iciency (Sha ique e al. 2020).
Ac i e measu es, such as wa e ci cula ion sys ems benea h PV a ays o sp inkle sys ems p o ide
di ec cooling, u he boos ing pe o mance. By using g eywa e o s o ed ainwa e can be u ilized
also he e o p o ide he necessa y esou ces. In addi ion o he empe a u e e ec wa e can se e
as cleaning medium as well, o p e en ex ensi e pollu ion o he modules and he eby inc ease he
powe ou pu signi ican ly (Qi e al. 2025).
Besides he cooling e ec o an applied wa e ilm, he p o ided adia ion can be used in he p o-
cess o he sola wa e disin ec ion me hod (SODIS)2, which also bene i s om highe empe a u es.
I can be demons a ed ha wa e ea ed in his manne can mee he s anda ds se by Regula ion
(EU) 2020/741 on minimum equi emen s o wa e euse (To es e al. 2024).
The mal ene gy sou ce
Hea pumps using g oundwa e o o he na u al wa e bodies (e.g. lakes and i e s) as hea sou ce
is a well-known concep and widely used. New possibili ies o ex ended sec o coupling include he
use o using he wa e sewe age sys em as a hea sou ce o hea dis ibu ion ne wo k wi hin dis ic
hea ing ne wo ks. The i s op ion u ilizes he wi hd awal o i s he mal ene gy o ope a e hea
pumps while he second op ion uses he ne wo k o ans e wa e o a ce ain empe a u e o a
des ina ion mo e e icien ly whe e o he op ions a e no a ailable. Fo example, he use o wa m o
ho wa e om indus ial p ocesses o municipal was ewa e ea men plan s can be ed in o dis-
2 UN Clima e Technology Cen e and Ne wo k (CTCN), h ps://www.c c-n.o g/ echnologies/sola -wa e -disin ec ion
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ic hea ing ne wo ks, p o iding low-ca bon hea ing solu ions o esiden ial and comme cial build-
ings. This educes he need o addi ional ene gy inpu s, while also imp o ing he o e all e iciency
o dis ic ene gy sys ems (Bundesam ü Ene gie 2004; Umwel bundesam 2021; Bieke e al. 2021).
Floa ing PV
On a la ge scale loa ing pho o ol aic sys ems ep esen ano he inno a i e applica ion o sec o
coupling. By ins alling sola panels on wa e bodies like lakes, ese oi s, o was ewa e ea men
ponds, hese sys ems bene i om na u al cooling due o he su ounding wa e . This inc eases he
pe o mance o he PV, while also o e ing en i onmen al ad an ages such as educing wa e e ap-
o a ion and slowing algae g ow h (Rosa-Clo e al. 2017; Ilgen e al. 2024; Dö enkämpe e al. 2021;
Haas e al. 2020). In u ban a eas whe e space is limi ed, using wa e su aces o enewable ene gy
gene a ion o e s a aluable solu ion o he g owing demand o g een ene gy.
In conclusion, expanding sec o coupling o include he wa e sec o ans o ms he adi ional en-
e gy- ocused app oach in o a mo e holis ic and sus ainable sys em. By in eg a ing enewable en-
e gy, eco e ing was e hea , and ecycling wa e , communi ies can lowe CO₂ emissions, enhance
ene gy e iciency, and es ablish esilien local esou ce cycles. This app oach no only ackles cu en
en i onmen al challenges bu also pa es he way o sus ainable u ban de elopmen .
The syne gy be ween ene gy and wa e sys ems in ex ended sec o coupling o e s signi ican ben-
e i s, ye i s success ul implemen a ion equi es o e coming se e al challenges. Ad ancemen s in
echnology – such as e icien was ewa e ea men , hea exchange s, and wa e ci cula ion in a-
s uc u e – a e c ucial o enabling his in eg a ion. U ban planning mus inco po a e he con e -
gence o ene gy and wa e managemen , embedding hese p inciples in o building design and
public in as uc u e. This ansi ion demands bo h up on in es men and long- e m main enance.
Addi ionally, suppo i e egula o y amewo ks, including policies o was ewa e euse, enewable
ene gy in eg a ion, and g een in as uc u e s anda ds, will be essen ial o d i e widesp ead adop-
ion.
Figu e 5: Ex ended Sec o Coupling – Summa y and Impac
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7 Discussion and conclusion
Bo h he wa e and he elec ici y sec o ace common challenges like clima e and u ban de elop-
men changes. Despi e ob ious di e ences, he wa e and he elec ici y sec o sha e some analo-
gies and he ans e o knowledge om one sec o o ano he can unlock oppo uni ies o inno-
a ion and g ow h in bo h. Such ans e aligns wi h he b oade end owa ds c oss-sec o al in e-
g a ion in add essing en i onmen al challenges.
We examined h ee concep s – sma me e s and dynamic p icing schemes, legal ins umen s such
as cap-and- ade schemes and wa e sa ing obliga ion schemes, and ex ended sec o coupling
using he example o decen alised dis ic s – o hei po en ial applicabili y in o adap abili y o
he wa e sec o . These concep s ha e p o en success ul in he elec ici y (o a ela ed) sec o and
could be adap ed o add ess key wa e sec o challenges ela ed o esou ce managemen , demand
esponse, egula o y compliance, and sys em in eg a ion.
Sma me e ing and dynamic p icing models om he elec ici y sec o o e p omising ap-
p oaches o mo e e icien wa e use. While sma me e s enable p ecise consump ion moni o ing
and ea ly leak de ec ion, dynamic p icing models c ea e incen i es o be e demand managemen .
By using sma me e s, households and u ili y p o ide s gain eal- ime da a on wa e consump ion,
allowing o mo e accu a e billing and a ge ed demand managemen . Mo e p ecise acking o
usage pa e ns enhances e iciency and awa eness, educing unnecessa y losses wi h economic and
en i onmen al bene i s. A key ad an age is he ea ly de ec ion o i egula i ies in he supply sys em,
imp o ing main enance p ocesses and in as uc u e con ol. Combined wi h p icing models such
as block a i s o seasonal adjus men s; consume s can educe cos s and use wa e mo e sus ain-
ably. Implemen ing daily dynamic p icing is unlikely in he wa e sec o , as demand is ela i ely
p ice inelas ic and supply emains s able h oughou he day – in con as o he elec ici y sec o ,
whe e in aday luc ua ions a e signi ican . Seasonal p ice adjus men s, howe e – such as highe
a i s du ing summe mon hs – may o e a mo e p ac ical mechanism o p omo ing wa e con-
se a ion. Addi ionally, ensu ing a s able base p ice o essen ial use while cha ging mo e o ex-
cessi e consump ion could send a s ong signal o consume s abou esponsible usage. Success ul
implemen a ion equi es in es men s in digi al in as uc u e and socially balanced a i s uc u es.
Al hough ini ial cos s exis , au oma ed p ocesses and imp o ed esou ce planning can lead o long-
e m sa ings. Expe iences om he elec ici y sec o demons a e ha hese measu es can con ib-
u e o sus ainabili y.
Cap-and- ade schemes a e a key ins umen o cos -e ec i ely egula e ca bon emissions in he
ene gy sec o (as well as in indus y). In he wa e sec o , i s schemes ha e been de eloped as
well, mainly egula ing wa e consump ion in a id u al egions. The e main use is in gi ing he
aluable and sca ce esou ce o wa e a signi ican mone a y alue and being able o se an uppe
consump ion limi . I in e nalises ex e nal cos s linked o wa e sca ci y in o ac o s’ (o en mainly
a me s) conside a ions and calcula ions. In combina ion wi h an alloca ion o wa e igh s, i can
o ins ance p e en he cul i a ion o c ops ha a e no cos -e ec i e when aking ex e nal cos s
o wa e in o accoun , while s ill compensa ing a me s h ough allowance ading e enues. Wi h
inc easing s ain on g oundwa e aqui e s in his o ically less a id clima e zones, he w i ing is on
he wall wi h he need o s i e caps on wa e consump ion (and in pa icula la ge consume s)
being only a ma e o ime. Cap-and- ade schemes can play a cen al ole in his push, despi e
subs an ial adminis a i e and moni o ing e o s necessa y o insu e hei sound implemen a ion.
Wa e sa ing obliga ion schemes could wo k in he wa e sec o inso a mo e s udies on sa ing
po en ials a e ca ied ou . I is commonly belie ed ha wa e use o esiden ial and indus ial pu -
poses is al eady e icien enough. In some places o Ge many, a conside able decline in d inking
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wa e pe capi a has been achie ed since he 90’s due o he use o e icien wa e appliances. Ye ,
ag icul u e could s ill pa icipa e in he sa ing schemes, since he e is s ill e iciency po en ial. De-
spi e o e all wa e wi hd awals o i iga ion pu poses being qui e small in Ge many, i can s ill play
a ole in egions whe e i iga ed ag icul u e domina es. Addi ionally, he use o al e na i e wa e
sou ces can also be included (e.g. wa e euse om ea ed was ewa e , ainwa e use, desalina ion
e c.) in he scheme. Despi e ha i doesn´ change he consump ion quan i y, i can s ill elie e he
p essu e on con en ional wa e esou ces like su ace o g oundwa e . This could be, unde ce ain
ci cums ances, as desi ed ou come.
Ex ended sec o coupling o e s signi ican oppo uni ies by in eg a ing ene gy and wa e sys-
ems, maximizing e iciency and sus ainabili y. By connec ing hese sec o s, excess enewable en-
e gy, such as om wind o sola , can be used mo e e ec i ely ac oss ene gy and wa e in as uc-
u e. This no only educes was e and eliance on ossil uels bu also enhances he o e all use o
enewable ene gy, helping o minimize CO2 emissions. Wa e sys ems can con ibu e o lexibili y
by balancing luc ua ions in enewable ene gy p oduc ion, such as h ough hea exchange o using
was ewa e o ene gy gene a ion. This in eg a ion inc eases sys em esilience and s abili y, educ-
ing ulne abili ies in bo h sec o s. Addi ionally, eco e ing was e hea and eusing was ewa e im-
p o es esou ce e iciency and suppo s a ci cula app oach o esou ce managemen . The coupling
also opens new business models and echnologies, d i ing economic g ow h while os e ing inno-
a ion in ene gy s o age, lexible demand, and esou ce eco e y. Las ly, by enhancing clima e e-
silience, sec o coupling helps communi ies be e manage challenges like empe a u e luc ua ions
and wa e sca ci y, suppo ing sus ainable u ban de elopmen . O e all, he in eg a ion o wa e and
ene gy sys ems h ough ex ended sec o coupling can lead o a mo e e icien , low-ca bon, and
esilien u u e.
Wi h exemp ion o he sa ing obliga ion schemes, all concep s ha e, o di e en deg ees, been
implemen ed in he global wa e sec o , e en hough hei p e alence is s ill negligible. This could
be due o he sec o ’s s uc u e, compa ably low dynamism, and empo ally limi ed poli ical spo -
ligh .
The wa e sec o is mo e agmen ed compa ed o he elec ici y sec o . Fo ins ance, he na ional
wa e ma ke is comp ised o nume ous small, local en i ies wi h high demands on he secu i y o
supply and de ailed legal amewo k condi ions, leading o slowe di usion o new echnologies.
This could limi he up ake o concep s like sma me e s and dynamic p icing schemes, which ben-
e i om widesp ead adop ion and associa ed s anda disa ion o p ocesses.
Wi h some exemp ions, he wa e sec o is a a he undynamic en i onmen , since wa e supplie s
ha e a de ac o monopoly in hei a ea o esponsibili y, whe eas mos pa s o he elec ici y sys em
a e subjec o compe i ion. The e o e, he wa e sec o lea es li le oom o inno a i e ac o s and
he p essu e o adap o mo e inno a i e app oaches is a he low. Fu he mo e, wa e quali y is o
high conce n, whe eas any elec ici y coming ou o he socke is o equal quali y o i s use , equi -
ing s ic e gua d ails on any inno a i e app oaches conce ning wa e supply. In he case o unda-
men al changes o he amewo k condi ions, i should be no ed ha wa e ne wo ks a e ypical
na u al monopolies, so ha libe alisa ion, o example, is accompanied by he isk o o e all sys em
cos s inc easing and wa e quali y de e io a ing (B ackemann e al. 2000). Fu he examples on
ailed libe alisa ion o wa e companies a e w i en in he book “Whose wa e is i , anyway?” (Ba low
2020)
Wa e - ela ed p oblems a e mainly add essed egionally, and i s se e i y is ypically seasonal. In
con as , e e since he oil c isis in he se en ies, ene gy policy, and wi h i he elec ici y sec o , has
been a cen al poli ical opic, wi h a smo gasbo d o di e en con o e sially discussed app oaches
o achie e secu i y o supply and low p ices. This is illus a ed no leas by he ac ha abou a
dozen EU Membe S a es’ minis ies ca y he e m “ene gy” in hei name, wi h only Belgium and
Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
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F aunho e ISI | 36
Bulga ia ha ing minis y names including he e m “wa e ”. In he elec ici y sec o , his poli ical
spo ligh and he link o clima e change ha e esul ed in se e al uphea als, in e alia ma ke s’ lib-
e alisa ion o he seminal EU Emission T ading Scheme. In con as , he e is ha dly any poli ical
momen um o impose majo al e a ions o he wa e sec o ’s s a us quo.
In conclusion, he analysis sugges s oppo uni ies o c oss-sec o lea ning and inno a ion be ween
he wa e and elec ici y sec o s. While di ec concep ans e may no always be easible due o
he speci ic condi ions and cons ain s o he wa e sec o , hese concep s o e a s a ing poin o
inno a i e solu ions. Fu he esea ch and pilo p ojec s a e necessa y o explo e he easibili y and
impac o hese concep s in he wa e sec o . By le e aging he lessons lea ned om he elec ici y
sec o , we can enhance he esilience, e iciency, and sus ainabili y o wa e sys ems, con ibu ing
o a mo e sus ainable u u e.

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8 Lis o igu es
Figu e 1: S uc u e o epo .......................................................................................................................................... 9
Figu e 2: Sma Me e s and Dynamic P icing – Summa y and Impac ....................................................... 24
Figu e 3: Cap-and-T ade – Summa y and Impac ............................................................................................... 27
Figu e 4: Wa e Sa ing Obliga ion Scheme – Summa y and Impac ........................................................... 30
Figu e 5: Ex ended Sec o Coupling – Summa y and Impac ......................................................................... 33
Explo ing he T ans e abili y o Ma ke , Technical, and Regula o y Concep s om he Elec ici y o he Wa e Sec-
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F aunho e ISI | 38
9 Lis o ables
Table 1: Compa ison o echnical aspec s o wa e and elec ici y sec o ................................................. 15
Table 2: Compa ison o ma ke aspec s o wa e and elec ici y sec o ..................................................... 18
Table 3: Compa ison o egula o y aspec s o wa e and elec ici y sec o .............................................. 19
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