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EEPO Presentation April 2015

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EEPO Presentation April 2015 Energy Efficiency and Process Optimization to Save Money April 28, 2015 April 29, 2015 City of Surprise Town of Gilbert 11401 N. 136th Avenue 900 E. Juniper Avenue Surprise, AZ 85379 Gilbert, AZ 85234 Preface • Welcome • Agenda • Speakers 2 Preface • Welcome • State of the Industry • Agenda • Synergies with Electric Utilities • Speakers • Energy Billing and Demand Management • Energy Management Opportunities • Energy Management Program Development 3 Preface • Welcome • Agenda 1400 E. Southern Avenue Suite 650 • Speakers Tempe, AZ 85282 (480) 436-7959 4 Preface WATER REUSE • Welcome Prov iding sustainable solutions using technology and processes to max imize w ater resources and reduce • Agenda energy footprint • Speakers 5 Speakers Eric Dole, PE Bryan Lisk, PE, CEM Doug Kobrick, PE Curt Courter, PE 6 Thank You! 7 Housekeeping • Please mute all phones • Refreshments • Restrooms • Q&A • PDHs 8 Energy Management “State of the Industry” Energy Management is more than “Energy Efficiency” Energy Recovery Demand Management Alternative Energy Energy Procurement Nutrient Recovery Process Optimization “Beyond the Plant Fence Line” • View energy in a broad context • More than plant optimization • Multiple synergies with other industries Goal of "Energy Neutrality” • Becoming a common goal in wastewater industry. • View Energy Neutrality as more than “no purchased power bill”. Focus on Resource Recovery • Electric Energy • Biofuels Biogas Utilization • Thermal Energy (Heat) • Kinetic Energy (Hydro Energy) • Nutrients Nutrient Recovery Renewable Energy Systems Evolving Energy Markets and Regulations Renewable Energy Portfolio Renewable Fuel Standards Low Carbon Fuel Standards Standards (RFS2) (State of California) • Electric Utility Industry • Transportation Fuels, NG • Fuels (Transportation Fuels, • Renewable Energy Credits Pipeline NG, etc.) (RECS) – MWH of renewable • Renewable Identification • Credits issued by CO2 avoided energy generated Number (RIN) by low carbon fuels • State level • Pathways developed for biogas • Projects outside CA can • Nationwide generate credits Electric Energy Fuels (i.e. RNG, biodiesel, biofuels, ethanol) Driven by Climate Change, Energy Independence/Security Alternate Project Delivery • Address payback risks Design Bid Build • Zero capital cost projects Leverage “savings” to move project Owner Performance • Procurement Contracting forward • Revenue Diversity Energy Project Utility DSM 3rd Party Rebate Ownership Programs Shared Savings Energy Management Master Planning • Develop a plan to implement energy projects • Identify opportunities and integrate with CIP • Understand “whole plant impacts” • Flexibility for changing conditions and new technologies • Business case evaluations Synergies with Electric Utilities • Demand Side Management • Renewable Portfolio Standards • Generator Capacity Credits • Load Curtailment • Energy Project Funding Synergies with Electric Utilities Utility Rebate Programs Arizona Corporation Commission (ACC) SRP Rebate Program Customers can receive up to $300,000/yr in rebates Most water-related projects would receive rebates under SRP’s Custom Business Solution Program. Custom Program Highlights: • An approved rebate application is required before initiating purchase or installation to qualify • Equipment rebates offered at $0.10/kWh savings up to 50% of project cost • Additional, optional technical services available for qualifying customers. SRP Rebate Program Relevant Technical Services: • Preliminary Assessments (PA): • Pump Test – • $350/pump for preliminary efficiency test/recommendations • Active pumps over 25HP in non-HVAC applications would qualify • No limit on number of evaluated pumps • Energy Conservation Measure (ECM): • Large plants/pump stations may qualify; requires E-60 series price plan • Funded 100% up to $3,000 for initial, high level energy study on preselected systems / opportunities. SRP Rebate Program Relevant Technical Services: • Technical Assessments (TA): • After a Preliminary Assessment is conducted, a Technical Assessment can be conducted as an investment grade evaluation of ECMs • Co-funded at 50% by SRP up to $10,000 initially. • Customer’s share is reimbursed if some measures are implemented. SRP Rebate Program Example: . WTP receives PA to evaluate ECMs; SRP pays $3,000 @ no cost to the Customer . Some ECMs have good economics, need further study. Assume TA costs $28,000; SRP pays $10,000, Customer pays $18,000 . ECM saves 300,000 kWh/yr and costs $50,000 to implement . 300,000 x 0.10 = $30,000 rebate . Since 50% of $50K = $25,000, only $25,000 will be reimbursed . Total Rebate = $3,000 + $10,000 + $25,000 = $38,000 total APS Rebate Program Targets non-residential commercial and industrial businesses, and institutions (small and large) . Large Customer > 100kW during month - $500,000/yr . Small Customer < 100kW during month - $150,000/yr . Studies – 50% cost of study up to $10,000/study . Retro-Commissioning – 75% $20,000/study . Pump Tester Program – Managed by Lincus $350-$450 per pump or blower APS Rebate Program Flat $0.09/kWh saved up to 75% of customer cost available annually for incentives (+ $55/HP for VFD) Example: . ECM saves 300,000 kWh/yr . Costs $50,000 to implement . 300,000 x 0.09 = $27,000 rebate . Since 75% of $50K = $37,500, full $27,000 will be reimbursed . If implementation cost was $30K, rebate would only be $22,500 (30,000 x .75) Energy Billing and Demand Management Demand Management Demand Management Energy Efficiency Use Control demand to less energy for a given process reduce energy cost Energy Efficiency Demand Resource Management Recovery Resource Recovery Recover waste energy to offset purchased energy 27 Utility Billing • Fixed Charges • Independent of demand or usage. • Facility charges. • Demand Charge (kW) • Typically 15-30 minute peak power demand during a billing period. • Energy Usage Charge (kWh) • Energy consumed during the billing period. Demand charges are based on peak metered demand Demand ratchets and minimum billing demand Peak Demand Demand (KW) 90% Annual Demand Ratchet Example “Time of Use” Billing • Energy & Demand costs change with the time of day. • On peak periods can change seasonally • Very Common “When” energy is used and “how much” energy is used determines the overall cost. Real-Time Energy Rates Hourly LMP Data Example • Cost of energy varies hourly with 0.45 the real time energy market. 0.40 • Real time cost of energy often 0.35 exceeds retail cost during peak 0.30 periods. 0.25 • Benefit from market volatility $/KWH 0.20 through demand response 0.15 programs and real time pricing 0.10 billing rates 0.05 0.00 0 50 100 150 200 250 300 350 Demand Profile Will Impact Energy Costs Utility Billing Rate Determines Energy Management Strategy 10 9 Fixed Charges 8 7 6 Demand Charges 5 4 3 2 Energy Charges Average Electric Utility Cost ₵/KWH UtilityCost Electric Average 1 0 Plant A Plant B (AZ) Energy efficiency benefit example: LED Lighting • LED outdoor lighting reduces plant’s outdoor lighting demand by 50kW • Annual Energy Savings - 175,000 kWh per year. 35 Energy efficiency benefit example: LED Lighting So….. 175,000KWH X 8.5₵/KWH = ~$15,000/yr. of savings right? Maybe not!....... 36 Energy efficiency benefit example: APS LGS Rate - $17/kW any time, $0.041/KWH any time • LED light demand offset - $10,400/yr, • LED light energy usage offset - $7,100/year LED Lighting Evaluation – Water Treatment Plant 1400 1200 ) 1000 800 600 Demand (KW 400 200 50kW Peak Demand 0 Reduction 0:00 2:00 4:00 6:00 8:00 0:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 Time Plant Demand Profile 37 Energy efficiency benefit example: APS LGS Rate - $17/kW any time, $0.041/KWH any time • LED light demand offset - 0 • LED light energy usage offset - $7,100/year LED Lighting Evaluation – Wastewater Treatment Plant 1200 1000 ) 800 600 Peak Demand 400 Demand (KW (No Demand Reduction) 200 0 0:00 2:00 4:00 6:00 8:00 0:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 Time Plant Demand Profile 38 Key Point. “When” energy is used and “how much” energy is used determines the overall cost. 39 Common Demand Management Strategies • Manage plant operations to reduce demand during on- peak hours • Defer non-critical operations to off-peak hours • Interlock intermittent loads • Utilize on-site power generation capacity to manage plant demand • Electric utility load response programs 40 Demand Management Case Study – HRRSA (VA) • Electric Utility Rate • Demand charges - $17.33/KW (any 15 min period) • Energy Charges $0.041/KWH • Opportunity – Stop non-critical mixing loads during each 20 min filter backwash cycle. • Filter backwash loads (~100hp) • Digester mixing loads (~85hp). • Annual benefit - ~$10,000/year (@ 80% load factor) in demand savings Case Study – Reduced demand charges through filter backwash timing Filter Backwashing causing high demand charges On-Peak Off-Peak $15/KW $1/KW 5.7₵/KWH 3.4₵/KWH Daily Demands, June 2011 The Cause: Automatic Deep-bed The Response: Move timing to filter backwash process during on- lower demand periods. Potential peak periods - ~150kW to save ~$1500 per month Case Study – Managing demand during on-peak periods 700 Stop Electric Blowers and Start Engine Blowers On-Peak Off-Peak $15/KW $1/KW 600 5.7₵/KWH 3.4₵/KWH 500 400 Average On-Peak Demand – 437kW 300 Demand (KW) 200 Optimum On-Peak Demand – 265kW Problem: Stopping electric blowers 10 minutes after 100 On-Peak period began. ~$20,000/Year in excess demand charges 0 0:30 1:30 2:30 3:30 4:30 5:30 6:30 7:30 8:30 9:30 10:30 11:30 12:30 13:30 14:30
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