All of us use LCC
PRICEPRICE
FUEL FUEL ECONOMYECONOMY
SAFETYSAFETY
DURABILITYDURABILITY
UTILITYUTILITY
MAINTENANCEMAINTENANCE
INSURANCE INSURANCE
PERFORMANCEPERFORMANCE
RESELL VALUERESELL VALUE
Energy & Maintenance costs LCCLCC
70% of energy production in industrialised
countries drive electric motors
70% of electric motors drive pumps,
compressors and fans Pumped systems account for 20% of the
world’s electric energy demands
Energy and maintenance costs during the
life of a pump system are usually more
than10 times its purchase price
Pump LCC, the product of … and a spirit of global cooperation 1994 - U.S. DOE invited HI to participate
in the Motor Challenge Program 1995 - Flygt develops Sewage Lift
station “DOE Energy Showcase” in CT 1996 - Europump forms the Enersave
committee 1998 - HI and Europump form a joint
committee to develop LCCLCC guidelines 2000 - Europump-HI “Pump Life CycleLife Cycle
CostsCosts-Global Best Practices” Guideline
Hydraulic Institute - Europump
Life Cycle Cost (LCC)Life Cycle Cost (LCC) is the total lifetime
cost to purchase, install, maintain, and
dispose of that equipment. Costs:
Initial purchase installation and commissioning energy operating maintenance downtime, loss of production environmental cost decommissioning
Cost Components Life Cycle Cost is the total lifetime cost to purchase, install, operate,
maintain and dispose of that equipment. HI/EP Oct. 2000
The purchase price is
typically less than 15% of
the total ownership cost.Downtime
9%
Operating9%
Maintenance20%
Installation9% Pump
14%
Energy32%
Environmental
7%
CONTENT
Chapter
Executive Summary
Introduction
1 Life Cycle Cost
2 Pumping System Design
3 Analyzing Existing Pumping Systems
4 Examples of LCC Analysis
5 Effective Procurement using LCC
6 Recommendations
7 References
8 Glossary
9 Appendix A - E
APPENDIXES
A System Curves
B Pumping Output and System Control
C Pump Efficiencies
D Case History - Cost Savings
E Electrical Drivers and Transmissions
MANUAL CALCULATION CHARTSystem description:
Input:
n - Life in years:
i - Interest rate, %:
p - Inflation rate %:
- Initial investment cost: 1
- Installation and commissioning cost: 2
- Energy price (present) per kWh:
- Weighted average power in kW:
- Average Operating hours/year:
Energy cost/year (calculated) = Energy price xWeighted average power x Average Operatinghours/ yr
3
- Operating cost/year: 4
- Average Maintenance cost (routinemaintenance/year):
5
- Down time cost/year: 6
-Other yearly costs : 7
-Sum of yearly costs : (3+4+5+6+7) 8
MANUAL CALCULATION ....cont.
- Average Maintenance cost (routinemaintenance/year):
5
- Down time cost/year: 6
-Other yearly costs : 7
-Sum of yearly costs: (3+4+5+6+7) 8
- Present Value of yearly costs:(use discount factor, df, see figure 7.2)
Dfx8=9df=………..
- Decommissioning/disposal cost (final year): 10
- Present Value of final year costs:(use factor Cp/Cn, see figure 7.1)
Cp/Cnx10=11Cp/Cn=……….
Result:Present LCC-value(1+2+9+11):
of which present energy cost is: (3xdf)
and routine maintenance cost is: (5xdf)
No. Industry/Application
Outline of Methodof Cost Saving
Type ofSaving
PaybackPeriod
Years
Life Cycle CostSaving
EURO/USD
Full Cost P.V
1 Building Services/ Air Conditioning
Comparison of 3installations:- 1 large pump with bypass
- 1 pump - throttle valvecontrolled
- 3 pumps variable speed
EnergyCost
-
-
-
-
47,800
70,400
29,300
38.300
2 Paper/Water CirculationPump
Install 2 pumps for the 2different duty cycleconditions.
Energy Cost 0.5 711,900 437,000
3 Chemical Processing/Condensate ExportPump
Trimmed impeller to matchactual duty requirements.
Followed by new smallermotor.
Energy andmaintenance.
0.06
3.1
107,000
8,600
82,200
5,900
SYSTEMS, SYSTEMS, notnot pumpspumps LCC starts with the SYSTEM.
Replacing a 75% efficient pump with a 80% efficient pump will save almost 7% electricity cost
BUT … if pump systems are incorrectly sized, efficient pumps will operate at inefficient points
75% of all engineered pump systems are estimated to be oversized.
PUMPS and SYSTEM SIZINGEnergy to Energy to BurnBurn
SYSTEM HEAD CALCULATIONS ARE CONSERVATIVE - SAFETY FACTORS
SINGLE PUMP, CONSTANT SPEED SYSTEMS SIZED FOR MAX DUTY
STATUTORY RULES IN MUNICIPAL
WASTEWATER PUMPING
40 DEG+ , THREE DAYS OF THE YEAR
SYSTEM COMPONENTS ARE OVER-
SIZED - SAFETY FACTORS
Pumps: expensive water heaters Pumps, over-sized for REAL system
demands, lead to
frequent on / off cycling
closing of throttling valves
RESULT:
adding friction head to the system,
increasing Pump kW (electric power required)
ENERGY
Efficient pumps & efficient systems =>
Specific Energy ( Wh/l pumped fluid )
Calculate specific energy for the system
and compare different solutions and
different components
Maintenance Throttled / oversized pumps run outside BEP
operate less efficiently, generate radial loads & wear faster
….whereas Accurately sized pumps and systems
reduce maintenance costs increase seal, bearing, shaft life increase MTBF decrease labor maintenance reduce production loss reduce our warranty goodwill costs
LCCLCC ComparisonComparison - ExampleExample10 Year Pump Life: : 80% eff 60% eff
800 gpm @ 90 ft BHP 16.95 kw 22.60 kw Pump / Motor Price $ 2,500 2,500
( with 30 hp motor) Installation 500 500 Energy Costs* 33,900 45,200
$ 0.05/ KwHr x 4000 hrs/yr x 10 yrs Maintenance
Parts (seals, bearings, shaft, impeller) - 4,000 8,000
Labor 5 hrs/10hrs 2,000 4,000 Downtime - BI insurance pro-rate 1,200 1,200 Environmental ($ 150 x 2/yr and 3/yr) 3,000 4,500 Decommission 650 650
TOTAL LCCLCC Comparison $ 47,550 $66,550
Operating Savings $ 19,000Operating Savings $ 19,000
LIFE CYCLE COSTLIFE CYCLE COST Customer Economic value
Reducing costs increases competitiveness
US Dept. Of Energy estimates 75-122 B KwH per year can be saved by “optimizing” motor driven pump systems
Savings would be between $ 4-6 B per year
Increase public services without raising public taxes and fees
Responding to the demands of private operators of public services to find system savings
•LIFE CYCLE COSTLIFE CYCLE COST Environmental ValueEnvironmental Value
Global commitment to environmental solutions -
Rio: Reduce ozone threatening emissions
Kyoto - commitment to reduce energy
1 KwHr of electricity produces 600 grams of CO2. Saving 75-122B KwH will reduce 45 to 75 Billion Kg in CO2
PUTTING LCCLCC TO WORK Think systems, not components.
Education of System owners, designers, specifiers, purchasers and producers
Concentrate on system performance, rather than component performance
Develop system specifications
LIFE CYCLE COSTLIFE CYCLE COST
ITT Industries ITT Industries EMBRACES LCC LCC AS A TOOL FOR SELECTING AN OPTIMAL SOLUTION TO CREATE ECONOMIC AND ENVIRONMENTAL VALUE OVER THE LIFE OF A SYSTEM
New LCC Focused products/systems from ITT Industries
PumpSmart - advanced electronics and algorithms monitor system demands and varies the speed of the unit or shuts it down to protect the pump
Hydrovar Contol System - converts the pump from a constant speed to a variable speed unit
N-Pump - revolutionary impeller reduces the energy consumption by 30-50%
Sanitaire - a fine bubble aeration system that cuts energy costs by up to 50%