Water+Energy - The Next Frontier

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The Water Industry is at the threshold of a profound transformation with smart operations slated to dominate the future. PROTEUS Consulting is defining Water-Energy Nexus 2.0 - beyond reduction of water and energy footprints by the respective industries, towards collaboration, solving common problems and attaining win-win solutions. We ensure consistent progress towards identification of technology and resources that will provide maximum return on investment to not only achieve energy efficiency, but also develop synergistic relationships between water and energy utilities towards a common goal of providing sustainable and fiscally responsible services to the communities they serve. While PROTEUS Consulting works to help municipal clients achieve benefits from traditional energy efficiency (EE) and Demand Response (DR) programs, we are currently working with CPUC, CEC, CalISO, CalEPA, and the IOUs to establish a groundbreaking program to allow water utilities leverage their flexibility in operations and capacity to help balance the grid (as a fast responding flexible load) and in turn receive a revenue stream that is independent of the volume of sales of water.

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Water+Energy - The Next Frontier

  1. 1. © 2013Water+EnergyWater and Energy are Intertwined andInterdependent. What is the Next Frontier?presents
  2. 2. © 2013Water and EnergySectors are LinkedBUT separate structures for regulation, rate, oversight,performance measures, administration, financial tracking ….
  3. 3. © 2013© California ISOEnergy Sector’s Reality• Energy Independence - needsscalable generation and distribution,takes time, very expensive• 2020 California Goalso 33% Renewableso 12,000MW local generationo 20% GHG reductiono Retiring once-through cooling power plants• Renewableso Base load (coal, natural gas, nuclear) – dirtier, morereliable, cheapero Alternatives (solar, wind, tidal, biofuels) – intermittent,cleaner, less reliable, more expensive
  4. 4. © 2013Consumer bases EnergyChoice on Price• Established programso Energy Efficiencyo Demand Responseo What NEXT??• Focus on Efficiency andEnergy savingso BUT cannot “save” our way out of acrisiso New renewable supply changes thenature of “peak load”
  5. 5. © 2013Future Electricity Grid• Supply will be:o Less predictable, controllable, and firmo More distributedo Both closer to and further from loads• Demand will be:o More dispatchable, predictable and controllableo Look for more price responsive, temperature/voltage-sensitiveo More coupled to reliability needs of the grid• Power Grid will be:o More observable, more dynamic, coupled with controllabledeviceso Buffered with the deployment of storage
  6. 6. © 2013SMART GridSmartapplianceswill shut offin responseto frequencyfluctuationsA network of integrated microgridsthat can monitor and heal itselfGenerators,small andlocalEnergygeneratedoff-peaktimes will bestored inbatteriesSensors will detectfluctuations anddisturbances and signalfor areas to be isolatedSystem processorsexecute special protectionschemes in microsecondsDemandmanagement ona 5-minute scaleor less
  7. 7. © 2013The Electricity SystemMust Always Balance• Re-configuring Demand Response as a flexibleresource that can help balance the grid andimprove operational and market efficiencieso Peak Load Reductiono Intra-Hour Variabilityo Ramp Smoothingo Load Shifting/OverGeneration Mitigation© California ISO
  8. 8. © 2013Water Sector’s Energy Use• 19% of Energy in CA• 30% of non-power plant natural gas (CA)• 88 billion gallons of diesel• Over $500 million on energy costs
  9. 9. © 2013
  10. 10. © 2013Water Sector’s Reality• What are we doing?o Energy Auditso Focus on Energy Efficiency /Savings Plan• rebates by utilities onpumps, VFDs, motors• Capital projects withreasonable ROIo Time of Use pumpingstrategy/ going off-grid• Energy costs going up,water is moreexpensive toproduce/treat• Aging infrastructureneeds investment• Reliability investmentsrequired• Rate hikes areunpopular• Built-in excess capacity
  11. 11. © 2013Energy Audits• Level Io Walk-through, low cost improvements (HVAC, lights), quick payback, useutility rebates, usually free for the water utility• Level IIo Energy survey and analysis, several hours per facility, look at power usageby equipment type; low cost improvements suggested (lights, HVAC,equipment upgrades such as VFDs, premium efficiency motors, etc.),quick payback, use utility rebates, Costs about $10,000, shared by energyutility• Level IIIo Detailed process audits, several weeks of data collection and analysis,review energy use rates, energy balance, pumps, process, operations;alternatives with cost benefit analysis; costs $8,000 - $60,000. Some costshare possible with energy utility, but commitment required by water utilityto implement measures• Renewable Energy Assessmentso Costs $100,000+; very detailed analysis of renewable options within thesystem; only viable after all the efficiency / savings projects have beenimplemented
  12. 12. © 2013CalEPA (Region 9) Pilot• 2010 – 2011 pilot with 15 water agencies, mixture ofLevel II and Level III audits, at no cost to facilityownerso 17% savings in energy use, 26% savings in energy costso No statistical differences between small and large utility resultso 15 recommendations with <1yr payback period, with total annualsavings of $190,000/yr. (>100% ROI)o Recommended projects had maximum payback period of 7.5years• $1.4 million / year cost savings with a 4.5 year payback (16%ROI/yr.)• 6900 MWhr/yr. reductions• BUT cannot “save” our way out of a crisis
  13. 13. © 2013So, Where is the Nexus?Dynamic Real-time Optimization
  14. 14. © 2013Opportunity in Water• 30+ Year planning horizon• Excess capacity• Investment made in SCADA• VFDs, premium motors• Water/Process Models (Static)• Operations Strategy currentlybased on low-priced but fixed off-peak energy tariff• Operations independent ofEngineering
  15. 15. © 2013Provide signals based on gridconditionsSignaling provided through smartmeters or facility energymanagement system to reflectsystem conditionsWater utility utilizes smart controlsthat communicate to equipmentwithin the facilityISO publishessignals as anindicator of gridcondition© California ISO
  16. 16. © 2013Technology exists today to enablerobust wholesale demand response2-wayCommunicationsControl SystemsDispatch SignalsPrice SignalsAdvanced MeteringInfrastructureOpenADRSmart Energy ProfileLegacy Direct LoadControlISO IOU3rd Party AggregatorCommercial, Industrial &Agricultural, ResidentialConsumersSmart meteringInformationEnabling technology & devicesTariffs & programs© California ISO
  17. 17. © 2013When applied to Waterand Wastewater Systems• Participate in grid reliability (day-ahead, real-time, reserve, 5-minute, or even faster)• Full connection to SCADA, automated system• Hourly or half hourly upgrades to operating plan• In-time response to real-time events• Achieve incremental additional efficiencies• Revenue generated by flexibility
  18. 18. © 2013Dynamic Real-timeOptimizationEnergyOptimizerHydraulic /Process OptimizerEnergy SignalSCADA
  19. 19. © 2013Hydraulic /ProcessModel RunsSCADAInformationDecisionProcess Notes/ ChatsControlStrategyVisualizationModuleBoundaryConditionsObservedWorldConditionsRules ofOperationDecisionLogicBusinessIntelligenceDATAMININGINPUT ANALYTICS PREDICTIVEQuery BasedRetrieval andOperations Whole business Accurate State ofSystem• History• Confidence level• Control Logic• SystemConstraints• Energy ProgramsLEARNING NETWORKEnergy Use
  20. 20. © 2013The FutureGenerate Revenue by leveraging the inherentflexibility of your system while assisting the regionalelectricity grid• Receive a new and continuous revenue stream• Specify constraints on flexibility - No impact oneffective operation of equipment or processes• Knowledge management, SMARToperations• Reduce GHG emissions by increasing the efficiencyof the electricity system• Improve the stability of the regional electricitysystem and the market’s ability to integraterenewable power generation
  21. 21. © 2013Water+Energy = DynamicReal-time OptimizationSoma Bhadra, CEO(858) 353 2805soma@consult-proteus.com

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