Renewables and Efficiency in Water Utilities

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1 Renewables and Efficiency in Water Utilities Centerville, UT September 4, 2013 Protection notice / Copyright notice

2 Topics of Discussion Micro-Hydro Technology Photovoltaic & Solar PPA s Efficiency Opportunities Water Meter Replacement Solar Powered Mixers Smart Irrigation to Reduce Consumption Page 2

3 Micro-Hydro Technology Micro-Hydro is generally < 100 kw Can be Stand-Alone or Grid-Connected Composed of following basic components Water conveyance -- channel, pipeline, or pressurized pipeline (penstock) that delivers the water. Turbine, pump, or waterwheel -- transforms the energy of flowing water into rotational energy. Alternator or generator -- transforms the rotational energy into electricity. Regulator -- controls the generator. Wiring -- delivers the electricity. Page 3

4 Micro-Hydro Technology Canyon Power s micro hydro project for the City of Logan, UT Page 4 Micro-Hydro Power System Turbines Turbines are commonly used today to power microhydropower systems. There are two general types of turbines: impulse and reaction. Impulse Turbines Impulse turbines, are most commonly used for high-head microhydro systems. The two common types of impulse turbines are Pelton wheel and the Turgo wheel. Pelton wheel -- uses the concept of jet force to create energy. They operate best under low-flow and high-head conditions with an high efficiency rates of 70 90%. Turgo impulse wheel -- an upgraded version of the Pelton. The Turgo operates under low-flow conditions but requires a medium or high head and is more efficient Jack Rabbit turbine -- Low efficiency and cost can generate power from a stream with as little as 13 inches of water and no head. Reaction Turbines Reaction turbines, which are highly efficient, depend on pressure rather than velocity to produce energy. Due to their complexity and high cost, reaction turbines aren't usually used for microhydropower projects.

5 Power Purchase Agreements (PPAs) A Power Purchase Agreement (PPA) is a contract between an energy customer and an energy provider that commits the customer to buying power from the provider at a particular rate over the term of the agreement. PPA benefits for Public Sector Clients: Low-Risk Clients only pay for the generated solar power. Clients do not take performance risk and do not have any obligations to maintain and operate the system. No Up-Front Cost - PPAs allow the customer access to clean, low-cost solar power with no up-front investment. Tax Incentives - PPAs provide a vehicle for monetizing federal tax benefits, including the 30% Investment Tax Credit. Energy Hedge - Locking in a rate for electricity allows clients to hedge a portion of their electricity budget at a fixed price, protecting clients from price volatility and price increases. Page 5

6 PPAs vs. Lease Financing Although PPAs deliver unique benefits, traditional lease financing can function favorably for public sector clients in certain circumstances and can provide a different set of benefits. Lease benefits for Public Sector Clients: Client retains ownership of the system at the end of the lease term. Under the PPA the system needs to be purchased from the PPA provider. Lease financing is financially efficient, which offsets the loss of the federal tax benefits. Lease financing is less contractually complex and is easier to execute. Client retains all incentives and environmental attributes associated with the system. Page 6

7 Efficiency Opportunities Water Meter Replacement Provides increased accuracy in meter reads and therefore increased revenues Reduces operating cost to manually read meters Reduces human errors on bills and meter reads Excess revenue can be used in lieu of rate increases to fund other infrastructure needs. Helps identify leaks in distribution system, which could result in less water being pumped, therefore less energy used. The water utility and Siemens can review the different meter types and automated reading systems to find the right match for the utilities needs. Page 7

8 Efficiency Opportunities Solar Bee Solar Powered Mixer Solar aeration device for lagoons, ponds, water tanks Battery provides 3-4 days storage Can also run on traditional electric supply Significant Mixing Benefits 100s of installations nationwide Page 8

9 Irrigation Market Overview Water Scarcity Index: States shown in red are at greatest risk of water shortage by Irrigation use will steadily grow as the population increases, leading to a increased demand on water treatment facilities. Several cities in the US are reaching the limit of available water South Florida saltwater intrusion is starting to become a major issue due to increasing demand for treated water Several cities currently using treated water for irrigation Arizona has established water credits due to the scarcity of the water As water becomes more scarce, cost of water and sewer will both continue to rise. In order to minimize the impact of both, innovative measures such as smart irrigation is crucial. Page 9

10 Smart Irrigation Overview What is Smart Irrigation? Uses weather-based tracking system to determine daily water loss from green space (evapotranspiration, ET) Replenishes lost water through existing irrigation system Minimizes water needed for irrigation Next step in savings beyond programmable timers Page 10

11 Key Market Drivers Water Conservation Cost Savings estimated to be 10% - 50% of current irrigation spend Minimizes manual control of system reduces overwatering by operator Important for areas commonly affected by periods of drought Improved Public Relations Reduces negative perception if residents / clients see excess watering (during droughts, rain storms, etc.) Reduced Water Runoff Water runoff is a safety hazard wet surfaces can cause people to slip and fall, leading to costly lawsuits Especially important for areas near handicap ramps Page 11

12 Thank you for your time Pawan Kumar CEM Energy Project Developer Siemens Industries Inc. Infrastructure & Cities Sector Building Technologies Division Phone (425) Fax (425) Mobile (425) Protection notice / Copyright notice

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