Implementing Capital Projects Through Energy Savings

Transcription

1 Implementing Capital Projects Through Energy Savings Section 21 Administrative Workshop for MDEQ Wastewater Management Marquette, MI December 4, 2012 Don Voigt, P.E., CEM Energy Cost Reduction Engineer EEI (Engineered Equipment Integration) (414)

2 Marquette MI Aeration System

3 Michigan UP Engineering Technology Innovators SBR/UV systems Membrane Water Treatment Turbo bearingless blowers for aeration SCADA/Telemetry Pioneers VOC Stripping in Water Treatment

4 Outline Why energy savings (efficiency) is coming to your utilities soon. What are the Energy costs for typical municipality and water/wastewater portion of all energy costs Smart operators + smart meters = $$ Financing concepts of 3 year payback are old ideas. Introduce financial tools available for demonstrating value of energy savings investments.

5 Michigan s Governor Snyder.. November 28, 2012 Energy Efficiency In a major energy policy speech, Governor Rick Snyder states. energy efficiency is the best example of a no-regrets policy Michigan can have describing how his administration is prioritizing energy efficiency initiatives.

6

7 Why no pressure on energy at municipal W and WWT, today? W and WWT managers primary focus is to meet Water Quality and/or discharge permit (we are not fined if we are not energy efficient) Energy efficiency requirements not in State Codes (yet, but soon). Most W and WWT managers don t receive the electric or natural gas bills why bother?

8 How to find extra $$ for your department? Get your energy/consumption bills added to your budget Begin sub-metering liquid flows and power Meet with and know your energy supplier acct. manager Learn your energy rate structure (learn your energy use as you know liquid flows) Modify equip. and services purchasing policies go to life cycle costing incorporate cost of operation and energy consumption EE can also be an optimizer in providing for better operation of the unit processes on site (reduced aeration results in more discrete and larger solids leading to improved dewatering as an example) Optimize reduce maintenance and wear and tear on equipment lesser pressure and lower speeds

9 Let s get started! Why Energy savings (efficiency)?.. Energy costs are Large in a World Market Demand

10

11

12 Energy Efficiency is a Resource we Own and Control it 100% Eff. Reduces need for new power plants New power plant costs > $3,000/kW Efficiency program costs < $500/kW Reduces environmental havoc

13 Energy Efficiency Least Cost Resource

14 Energy Efficiency (green) as a Resource Grows in Strategic Importance

15 What are the Energy Costs in a typical community?

16 City of 10,000 Pop. Energy Consumption City Department Gasoline, Diesel & Oil Natural Gas Electricity All Energy by Dept Engineering Municipal Bldg 9, , , , Police 58, , , , Fire Dept 7, , , , Ambulance 6, , , , Street Dept 77, , , , Street Lights & Signals 249, , Library 13, , , Museum 1, , Sr. Center 2, , , Pool 8, , , Park & Rec 2, , , , Park Maint 10, , , , Park Restroom Utilities 8, , Wastewater 2, , , , Water 25, , , Marina 3, , , City Energy Totals 173, , , ,007,078.00

17 Energy costs for a city of 10,000 population will be approx. 10% of the city s total budget or $1,000,000 of $10,000,000 And, Water/Wastewater is 1/3 rd of the one million $$! $115,839 $40,055 $18,321 Street Lights and Signals Wastewater $249,221 $130,160 $170,693 $136,702 $146,087 Water Parks and Recreation* Police,Fire Dept, & Ambulances Street Department Marina

18 City of 10,000 Population Equiv. Total Energy Cost by Type (2009) $173,972 (17%) $153,759 (15%) $679,347 (68%) Electricity Gasoline, Diesel & Oil Natural Gas

19 Electric Costs are Peak Dominated..and, thus, the entry of Smart Meters how does this concept work?

20 KW Customer demand drives the cost of operation of your power supplier and you/we will pay! As customer demand increases, additional power plants must come on-line to maintain a reliable electrical system 1200 Peaking Plants & Power Purchases Intermediate Plants Baseload Plants Time of day

21 Your costs for I&I are a direct parallel to Energy cut the peaks and you affect sizing/costs..immediately.

22 Energy Efficiency (blue) can slash Power plant demand and your bill!

23 Enter concept Smart Meters A Smart Meter is an electrical meter that records consumption of electric energy in intervals of ½ hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart Meters enable two-way communication between the meter and the central system. Smart Meters enable power providers to charge for their costs peak demand charges

24 Demand Charge brought to home! The datum point on the upper right cost this water/wastewater utility $11,000!

25 Demand Charges will be large $ Typical monthly Electric bill is usually: 1. Energy (kwh) $ = % 2. Demand charges $ = %

26

27

28 Demand Charges Are coming! Typical monthly bill percentages: Energy (kwh) = 50% 70% Demand charges (kw) = 30% 50%

29 Demand Charge To-Dos Obtain and review 30-minute demands Review variability of flows/pumping Identify motors normally in operation Assess your operations schedule (pump lead and lag schedules, for instance) Assess modifying operations schedule Sub-meter major operations Turn off unnecessary loads Strategize to reduce demand

30 What gets measured gets done Dale Doerr, Manager, Sheboygan WWTP, Wisconsin

31

32 You can t manage what you don t measure This is especially true of energy the only thing you buy that you don t know the cost of until after you ve used it, and have no idea what you used it for. Research has shown that real-time monitoring of energy use can help you reduce your bills by 5-20%. That s a pretty wide range totally dependent on the quality of the information you receive, and the opportunities you are provided to do something about your usage.

33 Action Plan To initiate energy efficiency at your utility Identify an internal energy champion Receive commitment from management Write an Energy Efficiency Consultant RFP (see attached excerpt from Center for Energy Efficiency) Establish and energy baseline (Level II Energy Audit) Establish an energy benchmark (Energy Star) Identify energy efficiency opportunities Implement energy efficiency modifications

34 Retain an Energy Engineering Cons. With Water/WW Knowledge Specific to Energy Efficiency RFP: Experience Description of recent projects of a similar scope and scale including date, cost and size of project, energy efficiency measures evaluated; and client contact information Experience with alternate funding opportunities such as government incentives and grants, utility rebate programs, and other options Sample energy efficiency study which demonstrates life cycle cost analysis (specify methods used) skills and methods and familiarity with water and wastewater treatment processes From: Consortium for Energy Efficiency Energy Efficiency RFP Guidance booklet Published 2011

35 Action Plan To initiate energy efficiency at your utility Identify an internal energy champion Receive commitment from management Write an Energy Efficiency Consultant RFP (see attached excerpt from Center for Energy Efficiency) Establish and energy baseline (Level II Energy Audit) Establish an energy benchmark (Energy Star) Identify energy efficiency opportunities Implement energy efficiency modifications

36 Measure Watts at All Major Motors

37 Measure Watts The basic retrofit kit for motor control centers

38 Measure Watts = $$ Web-based energy monitoring. Real-time, second by second data. Up to 480v, 3-phase.

39 Example real time Energy/Watts Individual registers. (circuits)

40 Facility-wide Management SCADA LAN LAN

41 Watt metering and submetering everywhere! Smart Meter HVAC Lighting WattNode, Continental Control Systems, Aeration Blower

42 Action Plan To initiate energy efficiency at your utility Identify an internal energy champion Receive commitment from management Write an Energy Efficiency Consultant RFP (see attached excerpt from Center for Energy Efficiency) Establish and energy baseline (Level II Energy Audit) Establish an energy benchmark (Energy Star) Identify energy efficiency opportunities Implement energy efficiency modifications

43 Implementing Energy Efficiency modifications.. Means justifying costs for energy efficiency improvements or, getting the money!

44

45

46 New $ tools Compare & simplify for Community Boards/Councils 1. Projectselect freeware (CH2MHILL) e-degrees-of-financial-analysis/ 2. Green Energy Engineering s Spread sheet 3. EPA Energy Star Cash Flow Opportunity Calculator (CFO) _value.financial_tools

47 WBG PDX Projectselect Enhanced Decision Support Tools Help Maximize Value Nate Cullen, Clean Water Services Lynne Chicoine, CH2M HILL

48 Non-Financial Input

49 Detailed Figures and Tables Provide Insights into Timing of Expenditures and Revenue

50 Green Energy Engineering Company Eric Coffin, P.E. St Petersburg, FL Assumptions Life of project 20 Interest Rate 3.00% Discount Rate 4.00% Cost of Electricity $0.10 Escalation of Electricity 6.00% Escalation of Maintenance 3.00% Escalation of Operations 2.00% Existing Operation Capital Cost $0 Maintenance Cost per year $4,000 Operational Cost per year $6,000 Energy Usage kwh/hr 100 Annual Operating hours 8,760 Energy Cost $87,600

51 Equipment Comparison Option "A" cheap capital cost Capital Cost $75,000 Maintenance Cost per year $3,000 Operational Cost per year $5,000 Energy Usage kwh/hr 75 Annual Operating hours 8,760 Energy Cost $65,700 Option "B" Optimized life cycle cost Capital Cost $100,000 Maintenance Cost per year $2,000 Operational Cost per year $1,000 Energy Usage kwh/hr 50 Annual Operating hours 8,760 Energy Cost $43,800

52 Annual Dollars Present Value Comparison $0 Cash Flow of Existing, "A", and "B" $50,000 -$100,000 -$150,000 -$200,000 -$250,000 Existing Operation Option "A" cheap capital cost Option "B" Optimized life cycle cost Copyright August $300,000 Years

53 20 years of Dollars Net Present Value $0 Existing Option A Option B -$500,000 -$1,000,000 -$1,500,000 -$2,000,000 Copyright August $2,500,000 Options

54 EPA Cash Flow Opportunity Calculator

55

56 Summarizing!

57 Summary Become Proactive Get Energy bills and know your Costs Get Management/Council/Mayor on-board Define baseline benchmark your energy usage Meter/Measure/monitor 24/7 and feedback Purchase energy efficient equipment based upon simple Present Value presentations Be compensated for cost reductions. Win!

58 Thank you! Don Voigt, P.E., CEM A Florida licensed/founded Consulting firm specializing in water and wastewater energy management