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Energy Savings Strategies
InWater and Wastewater
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Kentucky Residential Electricity Bills, 2004< $70 > $150
Kentucky Residential Electricity Bills, 2012 < $70 > $150
Electricity Use in the Municipal Water and Wastewater Treatment Sector is Significant
3% of the U.S. electricity use
35% of a municipality’s energy budget
2nd largest operating cost at WWTP
80% of all water processing and distribution costs
. . . But Provides a Great Opportunity
Energy savings potential of 15 to 35%
Nationally, could equate to $11B to $23B in capital projects
Energy Savings Performance Contracting
“The use of guaranteed savings from the maintenance and operations budget (utilities) as capital to make needed upgrades and modernizations to your building environmental systems, financed over a specified period of time.”
‐United States Department of Energy
How Does Performance Contracting Work?
The ESCO guarantees that cost avoidance (utility & operations expenses) will meet or exceed annual payments to cover all project costs over an agreed debt service period, or the ESCO pays the difference.
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Energy Cost
Maintenance Cost
Energy CostSavings Repayment
Maintenance Cost
Pre Project Post Project
Energy Savings are Only One Part of the Solution
Staffing Energy Chemicals Maintenance Other Solids
Source: Jones, Ted. “Municipal Water/Wastewater Breakout Session.” CEE. 18 January 2007.
Driving Change – Today’s Issues Regulations Aging Infrastructure Energy and Operational Costs
Energy & Operational Costs
ALL Energy and Operational Costs should be reviewed frequently for your plant, including:
Utility Bills (Electric, Natural Gas)
Transportation Invoices (sludge
hauling/handling)
Permit Violation Fines
Equipment Maintenance Invoices
Where do you Rank?Tools Developed by the EPA: Energy Star Portfolio Manager for Wastewater Treatment Facilities Ensuring a Sustainable Future: An Energy Management Guidebook for
Wastewater and Water Utilities
Facility Improvement Measures
Wastewater Pumping14.26% Screens
0.02%Grit1.36%
Clarifiers3.15%
Aeration54.12%
Return Sludge Pumping0.46%
Gravity Thickening0.06%
Anaerobic Digestion14.24%
Belt Press3.91%
Chlorination0.27%
Lighting & Buildings8.14%
Best Bang for the Buck
Typical Facility Improvement Measures
Power Factor Correction
Lighting
HVAC
High Efficiency Pumps/Motors
Aeration Systems
Disinfection
Odor Control
Life‐Cycle Cost Analysis
Pumping SystemsCan range from 40% to 95% in efficiency
Renewable Facility Improvement Measures
Digester Gas Capture and Reuse
FOG Receiving
Landfill Gas to Energy
Biomass
Micro Hydro
Wind & Solar
Applicable Legislation
KRS 45A.370, 45A.375, 45A.380, or 45A.385
• Authorizes the use of guaranteed energy savings performance contracts by units of local government.
• Requires an RFP process for competitive bidding and shall not be subject to an award determination based solely on the lowest competitive bid or a separate bidding process for each energy conservation measure (ECM) listed in the proposal.
• Exempts self‐funding ESPC projects from current and future debt limitations.
Guarantee Basics
Written guarantee that energy savings, operational savings, and capital cost avoidance will meet or exceed the costs of the energy conservation measures within the term of the contract.
Annual Reconciliation per the agreed upon Measurement and Verification Plan.
If the guaranteed savings are not met, the ESCO pays the shortfall.
Not a “shared savings” approach. The Municipality retains the benefits of any excess savings.
Five Steps to Successful Energy Performance Contracting
Decide if ESPC is a Good Solution for You.
Select an Energy Services Company.
Contract with Your ESCO to Identify Energy Savings Opportunities.
Negotiate a Long Term Contract with Your ESCO.
Verify Savings and Enjoy the Benefits.
What Are My Obligations?
• Conduct a competitive procurement.
• Work cooperatively with the selected ESCO by providing access to facilities, available information, blueprints, surveys, etc.
• Operate, service, and maintain the newly installed equipment.
Who to Contact?
Department for Local Government Energy Efficiency & Conservation Program
Harry Carver: [email protected] Lane: [email protected]
502‐573‐2382www.dlg.ky.gov/eec
AMERESCO, Inc.CMTA Earthwell Energy Management, Inc.Energy Systems GroupHarshaw Trane CompanyHoneywell Inc.Johnson ControlsNORESCOPerfection Group, Inc.Pepco Energy ServicesSiemens Industry, Inc.
Kentucky Energy Services Coalition Members
Questions ?
