A Water and Wastewater Utility Guide to More Sustainable Energy Management. Mike Harvey, PE Donohue and Associates. MWEA Lansing, MI October 20, 2015

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1 A Water and Wastewater Utility Guide to More Sustainable Energy Management Mike Harvey, PE Donohue and Associates MWEA Lansing, MI October 20, 2015

2 The Global State of Energy Demand for energy 40% supply gap by % of requisite infrastructure not built $21 trillion investment required Extra $10 trillion needed to decarbonize capacity 75% of increase met by fossil fuels China to expand by 1300 GW by 2030 Source: Palmer & Nair, 2011; Zhou, et al., 2011; World Economic Forum, 2011

3 The Global State of Water 2/3 of global population under high water stress 40% Gap in Supply by 2030 Source: 2030 Water Resources Group; Global Water Supply and Demand Model, 2009

4 How are Energy Sources Distributed in Powering Our World? Oil NGas Coal Source: Muller, R., 2012

5 How is Energy s Demand Distributed? Source: Kroiss and Svardal, 2011

6 Water s Footprint in Energy Production Source: Gleik, 1994; Gerneb-Leenes, et al., 2009; Meconneu and Heokstra, 2011

7 Resource Nexus: The Environmental Challenge of the 21 st Century

8 Treating Wastewater: Responding to the New Normal Raw Wastewater Preliminary Treatment Solids Treatment & Resource Recovery ENERGY FACTORY Biosolids Handling & Market Resources Tertiary Treatment NUTRIENT FACTORY Disinfection Primary Treatment WATER FACTORY Secondary Treatment Outfall Waste Streams Advanced Treatment Value Streams Receiving Water Body

9 Value of the Water Market Source: Stacklin, 2011

10 Change our Mind(set) WEF believes that wastewater treatment plants are NOT waste disposal facilities, but rather water resource recovery facilities that produce clean water, recover nutrients (such as phosphorus and nitrogen), and have the potential to reduce the nation s dependence upon fossil fuel through the production and use of renewable energy.

11 Energy Roadmap Purpose To help utility managers effectively plan and implement efforts to enhance energy sustainability Build off of the wealth of existing information

12

13 Structure Matrix The Book

14 The WEF Energy Roadmap Strategic Management ENABLE INTEGRATE OPTIMIZE Set goal Gather support Prioritize and implement Organizational Culture Develop vision, Team Communicate, take action Empower Team and staff Communication and Outreach Develop strategy Develop message Continuously evolve efforts Demand Side Management Understand baseline Detailed evaluation Implement changes Energy Generation Develop goal/strategy Implement generation Maximize value Innovating for the Future Evaluate existing Research, partner, mitigate Full-scale solutions

15 Level of Achievement Prioritization of Activities Strategic Mgmt SM Org. Culture Optimize Comm. & Outreach Demand Side Mgmt Energy Generation Integrate Enable IF EG OC HIGHEST PRIORITY Innovating for Future C&O DSM Low Med High Level of Importance

16 STRATEGIC MANAGEMENT

17 Energy Use Strategic Management Strategic Direction Financial Viability Collaborative Partnerships Towards Carbon Neutrality Possible Goals 75% energy produced onsite 20% energy conservation 90% energy from renewables 50% employees on public transportation Time

18 ORGANIZATIONAL CULTURE

19 Organizational Culture Energy Vision Energy Team Staff Development & Alignment ENERGY VISION Elected Officials STRATEGIC PLAN Utility Leadership Group/Management PERFORMANCE PLANS Staff Staff Staff Staff Staff Staff

20 Organizational Culture Energy Vision Energy Team Staff Development & Alignment Engineering Staff Planning Staff Operations Staff Energy Champion Maintenance Staff Regulatory Compliance

21 Organizational Culture Energy Vision Energy Team Staff Development & Alignment Training Understanding electricity understanding energy management Energy billing, peak demand Lifecycle cost analyses Industry Information Sharing Rewarding Conservation Incentives

22 COMMUNICATION AND OUTREACH

23 Communication and Outreach Customers and Community Regulatory and Legislative Media Outreach Environmental Advocacy Groups Water Sector Identify target stakeholders Tailor the approach Evolve and grow efforts Tips: Be proactive and create the story Emphasize the project benefits (stakeholder specific) Share lessons learned within the sector

24 DEMAND SIDE MANAGEMENT

25 Demand Side Management Electricity Costs and Billing Power Measurement (1) & Control Energy Management Source Control Review Data 2 years of bills Analyze Costs Energy charges Demand charges Rate structure Make Changes Rate structure Shift loads Time of Use (TOU) Charges Billing Period (2) (2) Energy Usage Costs= $ /kWh - $ /kWh (3) Energy Demand Costs = $ /kW - $ /kW (4 Total El

26 Demand Side Management Electricity Costs and Billing Power Measurement & Control Energy Management Source Control Analyze Baseline Energy Use Benchmarking by Process Real-time control Anaerobic Digestion (12%) Activated Sludge (51%) Lighting & Buildings (10%) Solids Handling (8%) Pumping (15%) Primary (3%) Other (1%)

27 Demand Side Management Electricity Costs and Billing Power Measurement & Control Energy Management Source Control Energy Audit Implement Changes Incorporate Energy into Future Designs Reduce Energy Use of Key Equipment By: Shutting down Operate part time Operate with variable speed Operate at lower flows Operate at lower pressures Replace with more efficient equipment

28 Demand Side Management Electricity Costs and Billing Power Measurement & Control Energy Management Source Control Understand Influent Loading Manage Loads to Reduce Energy Use Reduce Inflow/Infiltration Industrial surcharges Manage Loads for Energy Production Incentives for trucked highstrength waste

29 ENERGY GENERATION

30 Energy Generation Strategy Energy from Water & Wastewater Supplemental Energy Sources Renewable Energy Certificates Set a Production Goal Gain Support Grow Program

31 Energy Generation Strategy Energy from Water & Wastewater Supplemental Energy Sources Renewable Energy Certificates Hydroelectric power Biogas Thermal energy Emerging technologies

32 Energy Generation Strategy Energy from Water & Wastewater Supplemental Energy Sources Renewable Energy Certificates Co-digestion Solar Wind

33 Energy Generation Strategy Energy from Water & Wastewater Supplemental Energy Sources Renewable Energy Certificates Renewable Portfolio Standard Renewable Energy Certificates Purchased Sold Increasingly Significant Value

34 INNOVATING FOR THE FUTURE

35 Innovating for the Future Research & Development Risk Management Alternative Technologies Alt. Management Approaches Understand Existing Perform Research In house Collaborative Trial New Technologies

36 Innovating for the Future Research & Development Risk Management Alternative Technologies Alt. Management Identify Risks Technology Financial Regulatory Market Approaches Mitigate Risks Pilot testing Developers expense Permitting flexibility Predicting energy costs

37 Innovating for the Future Research & Development Risk Management Alternative Technologies Alt. Management Approaches Treatment Energy generation Example: Microbial Fuel Cell Example: Biofuels from FOG or biosolids

38 Level of Achievement Prioritization Strategic Mgmt SM Org. Culture Optimize Comm. & Outreach Demand Side Mgmt Energy Generation Integrate Enable IF EG OC HIGHEST PRIORITY Innovating for Future C&O DSM Low Med High Level of Importance

39 Is Energy Neutrality a Real Deal?

40 What About Energy Balance in Treatment? 57% 45% 9% Units: kwh/person/yr Energy Neutrality Threshold Renewables Sewage Flow Equipment Sludge Treatment Adapted from Cornel, et al., 2011; Lazarova, et al., 2012

41 222 Million people Why Does Progress Seem Slow? $$$$ Excessive pay-back on Investment Still relatively easy to permit sites for land disposal Difficult to compete against cheap fossil fuel power No. of WWTPs With AD With CHP

42 For more information 1. Download the Roadmap Matrix WEF website 2. Buy the Book ( $44 3. Look for a Workshop at WEFTEC or other WEF or MWEA seminar 4. EPA resource documents Contact: Mike Harvey mharvey@donohue-associates.com

43 Thank you!!