Micro-hydropower turbines could save the water industry millions of pounds each year.
That’s according to new research from Bangor University and Trinity College Dublin.
The turbines work by harnessing water already flowing around the system.
The report claims supplier Dŵr Cymru Welsh Water alone could save £1 million a year through the generation of 10 million kilowatts of electricity – enough to power 2,000 homes.
It could also prevent around 10,000 tonnes of greenhouse gas emissions.
The European Commission backed the project with a €1 million (£0.7m) European Regional Development Fund (ERDF).
The research looked at the current efficiency of the system, the best technology, the cost and the environmental benefits.
It states the water industry consumes a vast amount of energy as it treats, pumps and distributes water and wastewater around the country.
This results in greenhouse gas emissions and adds costs to consumer water bills as the price of electricity increases.
Mike Pedley, Head of Energy from Dŵr Cymru Welsh Water said: “At Welsh Water we already make considerable use of hydro but this project has helped bring into focus where more could be done with the right technological developments.”