Water loss in parts of Greece’s aging water networks exceeds 50 percent, according to a new analysis by EY-Parthenon, highlighting the urgent need for infrastructure upgrades and a new approach to water management.
The report warns that climate pressures, prolonged drought, declining water reserves, and outdated infrastructure are pushing Greece’s water sector to a critical turning point.
Greece’s water networks are now increasingly viewed as core national infrastructure with direct implications for economic stability, environmental protection, and long-term public planning.
A loss of over 50% in some of Greece’s aging water networks
According to EY-Parthenon, the global strategy consulting arm of Ernst & Young (EY), water losses across Greek networks exceed 30 to 40 percent in many cases, while certain areas face losses of over 50 percent. The high losses reflect aging infrastructure, insufficient maintenance, limited monitoring of water flows and consumption data, and the need for more efficient management systems.
The analysis also notes that water reuse remains extremely limited in Greece, at around two percent. At the same time, irrigation accounts for approximately 85 percent of total water consumption. More than 70 percent of irrigation water comes from underground reserves, which highlights the need for more efficient resource use and a more pronounced shift toward circular water management.
Fragmented water sector faces growing pressure in Greece
EY-Parthenon identifies fragmentation as one of the main weaknesses of Greece’s water management sector. The market includes 129 municipal water and sewage companies, more than 450 irrigation organizations, and a broad network of local authorities. This dispersed operating model makes coordination harder, limits economies of scale, and slows modernization projects.
The challenge becomes more urgent as the sector faces increasing demands related to resilience, governance, service quality, and regulatory compliance. Numerous smaller providers remain under financial pressure, as revenue from water bills often does not fully cover operating costs or support major infrastructure investments.
Greece’s water infrastructure needs reach €10 billion
Although the sector faces serious structural problems, EY-Parthenon sees significant room for investment in Greece’s water market. The country’s medium- and long-term infrastructure needs stand at around €10 billion ($11.5 billion). Meanwhile, Greece’s two largest water companies have planned or ongoing investments that exceed €3 billion ($3.46 billion).
These investments focus on network upgrades, expansion, modernization, and efficiency improvements. According to the report, investor confidence in the sector also continues to rise, as shown by the recent market performance of listed companies operating in the water industry.
New rules could reshape Greece’s aging water networks
Changes in Greece’s regulatory framework could further transform the sector. The expanded role of the Regulatory Authority for Waste, Energy and Water (RAAEY), stricter European obligations on wastewater management, and efforts to reduce fragmentation are shifting reform from discussion to implementation.
These changes create opportunities, but they also impose new requirements on water providers. They call for greater transparency, more rigorous reporting obligations, improved accountability, and more reliable long-term planning. EY-Parthenon emphasizes that the sector’s future challenges are not only technical. They also involve financial sustainability, pricing policies, digital transformation, investment priorities, and cooperation between public and private stakeholders.
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