Now Is the Time for Energy Management
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This webinar in the Water business’ Essential Insights series discusses approaches to energy efficiency and resource recovery, including industry initiatives, innovations and case studies.
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Now Is the Time for Energy Management
- 1. 11November2015 NOW IS THE TIME FOR ENERGY MANAGEMENT STEVE TARALLO, ENV-SP
- 2. • New Paradigms in the Water Industry • Energy Use at Water Facilities • Opportunities • Select Industry Leaders • Industry Initiatives • Energy Management Planning Methodology • Q&A AGENDA 2
- 3. 3 NEW PARADIGMS • Resilience • Efficiency and Optimization • Expanded environmental stewardship • Resource Recovery • Net Zero energy use • Life Cycle Thinking • Triple Bottom Line Destination: “Utility of the Future”
- 4. Significant opportunities to not just reduce energy use, but to recover energy • Public Water Supply • 1600-2,100 kWh/MG • 70-80% for Pumping • Water Resource Recovery Facilities (WRRFs) • 800 - >5,500 kWh/MG • >85% at the plant • Typically largest energy consumption for municipality • Approx. 2% of U.S. power generation ENERGY USE AT WATER FACILITIES 4
- 5. STRATEGIC ENERGY MANAGEMENT FRAMEWORK 3 November 2011 5 Performance benchmark loop Create a baseline of energy performance against which to measure improvements over time
- 7. • Process Selection • Biggest opportunity for energy efficiency and recovery • Carbon diversion • Equipment Selection • Oversized = inefficient • Peak Flow/Load Management • Reduce peak demands & start/stops DESIGN FOR ENERGY EFFICIENCY AND RELIABILITY 7
- 8. OPERATING FOR ENERGY EFFICIENCY AND RELIABILITY 8 • Operate Equipment Near Design Point • Turn Off Excess Capacity • Maintain & Clean Equipment
- 9. AERATION SYSTEM ENERGY OPTIMIZATION 3 November 2011 9 • Blowers + Piping/Diffusers + Controls = ONE SYSTEM • High-efficiency diffusers • Fine bubble; Ultra-fine bubble • High-efficiency blowers • Single-stage, integrally-geared centrifugal • High-speed turbo gearless centrifugal • Automatic DO/advanced control systems • Most Open Valve; SRT/DO; BNR simulation Need all components to work together for overall system energy efficiency
- 10. FINE BUBBLE DIFFUSER MAINTENANCE 3 November 2011 10 0.2 0.3 0.3 0.6 0.9 1.2 1.5 1.8 2.1SOTE/ZorFSOTE/Z(%/ft) NEW USED OLD diffuser age 1 2 3 4 5 6 7 SOTE/ZorFSOTE/Z(%/m) OR CLEANED (2-24 mo. in operation) (>24 mo. in operation)
- 11. CARBON DIVERSION 3 November 2011 11 Improving Primary Tmt. • 13% less oxygen demand (COD) to aeration basin • 13% more COD to anaerobic digestion to increase gas production With CEPT • 36% less COD to aeration basin • >50% more COD to anaerobic digestion to increase gas production
- 12. ELECTRICAL INTENSITY (KWH/MG) FOR DIFFERENT TREATMENT LEVELS 3 November 2011 12 Typical Best-Practice Improvement Trickling filter 1058 793 25% Secondary tmt. 1412 973 31% Nitrification 1934 1249 35% BNR 2070 1241 40% ENR 1955 1202 39% MBR 5676 2815 50% Two-Sludge (A/B) 1981 1277 36% (from WERF ENER1C12 Net Zero Energy Solutions for WRRFs)
- 14. PHILADELPHIA WATER DEPT. 3 November 2011 14 • Utility-wide strategic energy plan commissioned in 2008/2009 • Airport deicing fluid for co- digestion/improved gas production • 250kWp solar installation • 1 million BTU/hr sewage geothermal installation • 5.6MW biogas cogeneration facility • Innovative pilot tests and demonstrations
- 15. DC WATER 3 November 2011 15 • From R&D to Implementation • Thermal hydrolysis process (CAMBI) for biogas augmentation • 14MW CHP facility • Sidestream short-cut nitrogen removal • Cutting-edge research into mainstream short-cut nitrogen removal
- 16. ITHACA, NY 3 November 2011 16 • High-strength waste processing facility • Additional revenue streams (FOG, dairy waste, other sludges and high- strength wastes • Generating approx. 100,000 kWh/month from biogas (4x65 MW microturbines)
- 17. INDUSTRY INITIATIVES – TECHNOLOGY WERF ENERGY RESEARCH LIFT PROGRAM 17
- 19. Tools to help utilities develop their technology roadmap towards net zero energy use 19 WERF ENER1C12 – NET ZERO ENERGY SOLUTIONS FOR WATER RESOURCE RECOVERY FACILITIES Objective: Provide research to develop new approaches that will allow water resource recovery facilities to be energy neutral, and thus able to operate solely on the energy embedded in the water and wastes they treat. (from WERF Energy Management Challenge Exploratory Team Report, January 2011)
- 21. ENERGY FLOW (SANKEY) DIAGRAMS FOR >50 WRRF CONFIGURATIONS 3 November 2011 21
- 22. WERF PROJECT MODELED INNOVATIVE ENERGY EFFICIENCY AND RESOURCE RECOVERY TECHNOLOGIES 3 November 2011 22
- 23. 3 November 2011 23 LIFT is a WERF-WEF program that accelerates water technology demand and adoption and engages the entire water sector in all phases of the innovation process Greater collaboration leads to faster adoption
- 25. 25 • Demand Management • Energy efficiency • Load shifting/shedding • Improve power factor • Supply Management • Imported organic waste • Renewable energy • Combined Heat and Power 12 AM 7 AM 6 PM 12 AM $15.00 $10.00 $5.00 0 DemandCost$perkW Summer Winter 1 PM 8 PM ENERGY PLANS OFTEN INCLUDE A PORTFOLIO OF DEMAND AND SUPPLY SIDE MEASURES Combination of no CAPEX, low CAPEX, and high CAPEX measures. Holistic, integrated analysis.
- 26. Discretionary energy projects involve a wider set of stakeholders and less certainty of costs and benefits 26 BUSINESS CASE EVALUATIONS Decision Decision • Internal • Financial (20-yr NPV) • Costs and Benefits easier to measure Traditional Compliance; Capacity • Internal & External • Triple Bottom Line • Costs and Benefits more difficult to measure Energy projects Discretionary
- 27. HOLISTIC ENERGY EFFICIENCY RECOVERY PLAN APPROACH MAXIMIZES VALUE 27 Organizational Initiatives, KPIs Energy Rate Projections Energy Rate Analysis Energy Master Plan EnergyDecisionCashFlowModel Benchmarking & System Eff. Review Tech. Evaluations Process Mechanical Electrical/Gas Renewable Energy Alternatives Evaluations Biogas Utilization Thermal Energy Solar and Other Business Case Evaluations Project Screening & Prioritization Projected Energy Demand Profile Alternative Demand Profile Project Initiation / Visioning and Goals Workshop Progress Workshops Capital Projects TECHNOLOGY ROADMAP Best Practices & Operations Energy Management Dashboard Performance Management Strategy Technical Business Portfolio of projects to implement over time Informed decision-making that mitigates risk Alignment with Utility’s Vision TBL&BCEProcess
- 28. 28 Energy Rate Projections Cash Flow Model Projected Energy Demand Profile Alternative Demand Profile • Assess Energy Efficiency and Resource Recovery projects on a portfolio basis • Optimized energy project CIP through risk-based project implementation schedules • Planning criteria that is in line with strategic objectives of the utility • Facilitates business case development for discretionary energy projects ENERGY DECISION CASH FLOW MODEL
- 29. ENERGY PROJECT PORTFOLIO MANAGEMENT 3 November 2011 29
- 30. CONCLUSION 30
- 31. • The value of energy efficiency and resource recovery is becoming widely recognized • Energy efficiency and recovery projects can result in significant cost savings, but can also require significant capital investment • It is important to make a sound Business Case • To date, most utilities have taken a fragmentary approach (isolated projects) to energy management. • To extract sustained value from energy management, an integrated project portfolio approach is beneficial • Numerous tools, manuals, research reports are available to help guide you towards achieving your energy management objectives IN CONCLUSION 31
- 33. • Shift to value based management • Value vs. cost • Revenue generation vs. regulatory compliance alone or cost savings alone • Risk • Higher risk acceptance • Stakeholders • More of them • More diverse • Opportunity identification / Innovation STRATEGIC CHALLENGES 33
- 34. • Culture • Key Performance Indicators / Incentives • Energy efficiency (e.g. kWh or MMBTU per MG • Net Present Value • Business Partners • Buyer / Seller • Alternative delivery (e.g. Energy Performance Contracting) • Business Process realignment • Training of O&M personnel ORGANIZATIONAL CHALLENGES 34
- 35. • Maximize utilization of existing assets • Process “fit” • Alignment with Asset Management • “New” technologies • Pilot studies • Demonstrations • WERF LIFT program • Technology Roadmap • Set future course • Phased implementation towards achieving a future performance goal (e.g. “net zero energy use”) TECHNOLOGICAL CHALLENGES 35
- 36. FINANCIAL CHALLENGES 36 • Discretionary spending • Competition for limited capital funds • Volatile Energy market conditions • Will low natural gas prices continue? • Strong dependence on energy policy / strategic directions in the energy industry
- 37. INDUSTRY INITIATIVES – PLANNING WEF ENERGY ROADMAP 37
- 38. 38
- 39. SIX TOPICS THREE LEVELS OF PROGRESSION 39
- 40. PRIORITIZE EFFORTS BASED ON IMPORTANCE AND CURRENT LEVEL OF ACHIEVEMENT 40 Highest Priority
- 41. MOST SIGNIFICANT SUSTAINABILITY ISSUES 3 November 2011 41 58.7% 34.2% 39.1% 26.4% 30.4% 25.8% 8.2% 12.2% 7.1% 53.2% 31.8% 31.3% 27.1% 21.9% 18.4% 15.7% 11.2% 9.7% Maintaining or expanding asset life Customer water rates Long-term financial viability Energy efficiency Maintaining service with declining budgets Reducing sanitary sewer overflows Distribution system water loss Energy recovery/generation Chemical use Trends: 2014 and 2015 2014 2015 Source: 2015 Strategic Directions: U.S Water Industry Report (Black & Veatch)