how to fund & implement energy efficiency … to fund & implement energy efficiency...
TRANSCRIPT
How to Fund & Implement
Energy Efficiency Improvements
at Your Water & Wastewater
Treatment Facilities
September 15, 2015
Presented By:
Bob Lonergan, P.E.
Overview
• What is Performance Contracting?
• Water Treatment and Energy Facts
• Baseline Development
• Case Study
What is Performance
Contracting?
• Energy Service Companies (ESCOs)
• Leveraging Energy/Operational Savings to Pay
Capital Costs
• Annual Energy/Operational Savings Pay
Consultant/Contractor Fees and Loan Payments
• Typical Project Life Cycle: 10 – 20 Years
• Guaranteed Savings and Guaranteed Maximum
Pricing
• Is Performance Contracting an Option for My
Utility?
What is Performance
Contracting?
Leveraging Savings to Fund
Projects
$
Current Utility Costs
Electric, Gas, WaterCosts during
Capital
Repayment
$
Net Savings
Costs after
Capital
Repayment
$
Savings
to
Repay Capital
Net Savings
Discount Model – Example
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Total Cost Net Cost
$970k Savings 51% Discount
Award• Execute Investment
Grade Audit (IGA) contract
Preliminary IGA
• Develop Measures –Est. Cost & Savings
Final IGA
• Subcontractor Bids
• Savings Calculations
• Develop M&V Plan
• Pro formaEPC Contract &
Financing
EPC Implementation
Performance Assurance
Energy Performance Contracting
• Single Point of Accountability
• Accelerated Timeline for Benefits
• Best Value Subcontractors
• Captured Savings Benefits Utility
• Guaranteed Outcomes (Savings,
Pricing, Performance)
• Support and Third-Party Review by
State Energy Office
Benefits of EPC
Fun Facts
Water/Wastewater Treatment
and Energy Facts
• Annual Energy Usage For Water and
Wastewater Treatment in the US :107 billion
kWh or approximately 3% of total energy
usage
• Annual Energy Cost for Providing Safe
Drinking Water and Wastewater in the US:
$7.5 billion
• In over most cities, the WWTP is the largest
single consumer of electricity
Performance Contracting Facts
• Governments in the US have saved $45B in
energy costs through Performance
Contracting
• Total of water projects only represents 3% of
this
Water Loss Facts
• Water Loss
– 460,000 acre-feet of water annually is
being missed by meters in CO basin
– Enough to supply water for more than one
million homes
– Water providers in the CO Watershed
could capture $590M in new revenues by
better tracking their water
Biological
nutrient removal,
clarifiers,
disinfection =
50%
Pumping = 31%
Energy Costs and Opportunity
Baseline Development
• Trend historic influent flow with energy
usage
• Generate graphs showing the trending
results
• Estimate and trend future baseline based
on population projections
Develop Current and Future
Energy Baselines
Actual 2010 vs. Baseline Electrical Usage
(kWh) Example – Rifle WWRF
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
Baseline kWh Usage Actual Facility Usage (kWh)
Energy Conservation Measure
Evaluation
• Evaluation of significant opportunities
– Feasibility
– Impacts to maintenance, lifespan, other
processes
– Anticipated payback period
– Impacts to regulatory compliance
– Applicability of local utility rebates and other
funding sources
• Lighting and Electrical Control Systems
Upgrades
• HVAC and Control Systems Upgrades
• Water Conservation Measures
• Replace Inefficient Motors with Premium
Efficiency Motors
• Install VFDs on Existing Motors
• Renewable Energy (Solar, Wind)
Conventional (Non-Process)
ECMs
• Modify how the process is controlled
• Turn large motors on/off (such as pump
or aerator motors)
• Add VFDs to blowers and aerators to
more precisely match the actual oxygen
demand
• Recover heat from effluent stream and
cogeneration engines
Process (Non-Traditional) ECMs
Case Study – Colorado Town WWTP
Investment Grade Audit
Goals of Colorado Town WWTP
ESCO Project
• Optimize Energy Usage at Existing Facilities
• Increase Use of Renewable Energy Sources
• Improve Operations
• Strengthen Regulatory Compliance
• Leverage Operational Savings to Fund Capital
Improvements
Colorado Town WWTP –
Energy Conservation Measures
Energy Conservation Measure
ECM 1: Digester Mixing/Blower Upgrades
ECM 2: Tertiary Treatment
ECM 3: New 100 kW Solar Array
Process ECM 1 – Digester
Mixing/Aeration Upgrades
• De-couple aeration and mixing
• More efficiently meet low end air demands
• Minimize aeration costs
• Integrate operational targets, instrumentation,
and blower controls
• Energy savings can be leveraged elsewhere
• 15 year financing term paid with savings
• 3.0 % interest rate
• 3.5 % escalation
• Utility Provider Incentives = $10k
• Tier II DOLA Grant = $1.05M
Assumptions
Financial Model
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Total Cost Net Cost
Town in Colorado – Maximum Scope
1.06M Savings 38% Discount
• Obtain GMP for Selected ECMs
• Execute EPC Contract
• Finalize Design
• Construct Facilities
• Measurement & Verification Phase
Next Steps
Questions