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Nexus Water – Energy – Climate: Experiences of KfW-financed projects in the MENA-region

Dr. Stefan Gramel / Technical Advisor - KfW

Arab Water Week, January 2013

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Presentation structure

KfW: Water Sector

Wastewater: Climate Protection and Energy Efficiency

Energy Efficiency in Water Supply

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KfW: Water SectorOverview (values of 2011)

›Current portfolio EUR 4.8 billion (FC)

›Further EUR 3 billion are mobilised in local funds

›Annual commitments in 2011 in the order of EUR 700 million

›MENA is one of the most important regions for the KfW portfolio

›Trends:

›New types of projects besides traditional water supply, wastewater (as energy efficiency, climate mitigation/adaptation, re-use…)

›Financing instruments: Larger amount, smaller part of the money from the German Ministry (example: development loans)

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Wastewater: Climate Protection and Energy EfficiencyJordan: Analysis of the situation

› Expert analysis regarding possible measures:

› Energy efficiency at WWTP: limited potential, easier to tackle in the context of normal rehabilitiation

› Sewage sludge: multiple effects(1) use of biogas(2) reduction of emission/energy through transport(3) emission of CO2 instead of CH4

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Wastewater: Climate Protection and Energy EfficiencyJordan: Current status of sewage sludge treatment, disposal

› Mostly no dewatering, no digestion, problems with drying beds in particular in winter months

› Sludge dried solid frequently < 5%

› Cost for transport/disposal appr. 2 million JD/a

› High danger of groundwater contamination through liquid sludge on disposal sites

› Main part of processes are anaerobic to CH4:

appr. 150 000 tons CO2-eq through

sewage sludge (appr. CO2-emissions of

electricity production for 150 000 inhabitants)

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Wastewater: Climate Protection and Energy EfficiencyJordan: new Jordanian-German project financed through KfW

› Definition of new Jordanian-German project re. sewage sludge in 2012 (financed through KfW)WWTP besides Al

Samra:

• Mechanical dewatering

• Digestion

• Enhancement ofdrying beds

• Potentially other measures (solar drying, reed beds…)

Al Samra:

• Support for a solution in relation to the disposal of the sewage sludge (e.g. through co-incineration, mono-landfill)

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Wastewater: Climate Protection and Energy EfficiencyJordan: new Jordanian-German project financed through KfW

Type of measureInvest, O/M[€-Cent/m³

drinking water]

Drying beds: Rehabilitiation 2.2

Mechanical dewatering 0.7

Mechanical dewatering andSolar drying

7.3

Digestion 5.6

Landfill (Al Samra) 1.3

Co-incineration (Al Samra) 0.3

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Wastewater: Climate Protection and Energy EfficiencyJordan: new Jordanian-German project financed through KfW

Type of measureCost for reduction of

Greenhouse-Gases (GHG)[€/t CO2-eq]

Drying beds: Rehabilitation 961

Mechanical dewatering 19

Mechanical dewatering andSolar drying

190

Digestion 22

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Wastewater: Climate Protection and Energy EfficiencyJordan: new Jordanian-German project financed through KfW› Financial amount: from German side €

20 million plus Jordanian share

› What is done?

› Financing agreement on inter-governmental level

› Acceptance of KfW-Appraisal report to BMZ (German Ministry for Development)

› MoM re. main elements between WAJ -KfW

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Wastewater: Climate Protection and Energy EfficiencyJordan: new Jordanian-German project financed through KfW

› What is coming?

› PQ / Tendering for consulting services

› Detailed investment concept

› Detailed design, tendering, implementation

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Wastewater: Climate Protection and Energy EfficiencyTunisia: Sewage sludge programme › Situation: no general, nationwide

solution for sewage sludge currently (often: storing of sludge at WWTP site)

› Amount for investment: € 27 million plus Tunisian share

› Envisaged measures:

› Sludge treatment (dewatering, digestion…)

› Sludge disposal/recovery (landfill, agriculture, co-incineration…)

› Detailed concept studies currently ongoing (nationwide)

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Wastewater: Climate Protection and Energy EfficiencyTunisia: Programme for energy efficiency at WWTP

› Situation:

› Appr. 100 WWTP under operation(the largest 16 are focused here)

› Mostly sludge aerobic stabilization (energy intensive)

› Preparation of feasibility study just starts

› Based on FS:Preparation of KfW appraisal report to German Ministry for Development (BMZ), end of 2013

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Water Supply: Climate Protection and Energy EfficiencyJordan: Situation

› Water sector is the largest consumer of electrical energy in Jordan (> 10 % of total energy consumption)

› High potential for energy reduction(estimation before project appraisal 20%)

› High potential in particular in the field of pumping stations, submersible pumps in wellfields

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Water Supply: Climate Protection and Energy EfficiencyJordan: Concept of the project on energy efficiency

› Financial amount of the ongoing project:€ 26 million plus Jordanian share

› Project measures:

› Improvement of energy efficiency at pumping stations

› Improvement of energy efficiency in wells

› Enhancement of hydraulically critical situations in pipelines, networks

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Water Supply: Climate Protection and Energy EfficiencyJordan: ongoing Project on energy efficiency – Status of project implementation

› Pre-screening finalised:pumping stations, wellfields where to realise detailed investigations (in particular energy measurement) are defined

› Energy measurements just started

› PQ/Tendering for detailed design, tendering, supervision will start soon

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Water Supply: Climate Protection and Energy EfficiencyJordan: ongoing Project on Energy Efficiency – First results

› Best 10 wellfields: Payback period in average 1.7 a

› Best 15 pumping stations:Payback period in average 2.0 a

› BUT: high level of uncertainty in this phase (before the detailed measurements)

Synopsis

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Waste Water•Need re. sludge treatment in the MENA-region•High level of GHG-reduction

Water Supply•Potential for the reduction of energy consumption depending on the water supply structure (large potential in Jordan)•Results in Jordan indicate high cost efficiency