Canal de Isabel II has unveiled plans to invest over €2 billion over the next six years to enhance the quality, efficiency, and sustainability of water services across the Madrid region. The utility’s Strategic Plan 2025-2030 represents a historic 56% increase compared to the annual average investment over the past decade.
This ambitious plan aims to ensure water security in response to challenges such as population growth, diminishing water resources, extreme weather events, and stricter national and European regulations.
Key Investment Areas
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Water Collection and Distribution Infrastructure
- Over €850 million will be dedicated to expanding and modernizing water collection and treatment facilities.
- €450 million will be allocated to renovating pipes and distribution networks to reduce losses and improve water quality.
- A major project under this initiative is the €150 million expansion of the Colmenar Viejo DWTP, Spain’s largest drinking water treatment plant and one of the biggest in Europe.
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Smart Meter Rollout & Digital Transformation
- By 2026, Madrid will achieve 100% coverage of smart meters with remote reading, completing a key milestone in innovation and digitalization.
- More than €100 million has already been allocated for this initiative, with an additional €200 million earmarked to support Madrid’s transition to smart water management.
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Urban Drainage & Wastewater Treatment
- A €800 million budget has been set aside for urban drainage and wastewater treatment upgrades.
- €230 million will go toward new technologies to enhance wastewater treatment plants, ensuring compliance with updated discharge regulations.
- Around €500 million will be invested in modernizing drainage and sewerage systems, reducing the impact of extreme weather events such as droughts and floods.
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Environmental Sustainability & Energy Efficiency
- More than €50 million will be spent on spillway treatment facilities and retention elements to prevent pollution in watercourses.
- €60 million will fund clean energy projects and energy efficiency improvements, reinforcing sustainability commitments.
Tariff Adjustments & Affordability Measures
To support these investments while maintaining affordable water prices, Canal de Isabel II will implement gradual tariff adjustments. The plan includes:
- Keeping water tariffs below the national average while ensuring the sustainability of the regional water system.
- A progressive 3% annual tariff update starting from the second half of 2025 until 2030.
- Continued tariff reductions for vulnerable groups, ensuring equitable access to water services.
Despite these adjustments, Madrid’s projected bimonthly water bill of €37.2 in late 2025 will remain significantly lower than other Spanish cities, including Barcelona (€80.5), Seville (€62.5), Valencia (€59.6), and Bilbao (€51).
This strategic investment reaffirms Canal de Isabel II’s commitment to innovation, sustainability, and resilience, positioning Madrid as a leader in water management and infrastructure development.