cs44: ho chi minh water supply and sanitation project: mainstreaming energy efficiency by hubert...
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8/3/2019 CS44: Ho Chi Minh Water Supply and Sanitation Project: Mainstreaming Energy Efficiency by Hubert Jenny
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Presentation to Water CoP29 January 2010
Hubert Jenny, SEEW/ VRM
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8/3/2019 CS44: Ho Chi Minh Water Supply and Sanitation Project: Mainstreaming Energy Efficiency by Hubert Jenny
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Why Water Projects Should be Energy Efficient?
2… because energy costs are significant and still going up!
8/3/2019 CS44: Ho Chi Minh Water Supply and Sanitation Project: Mainstreaming Energy Efficiency by Hubert Jenny
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’ in Viet Nam (1)
- Industrial Sector TA: Policy and sub-sectors(manufacturing, cement, …)
- Water Sector: integrated into PPTAs for Hue and
Minh City (funded through French Trust Fund)
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SERD EE Initiativesin Viet Nam (2)
Improving operational efficiency / performance of water
- OCR Lending for Capital Expenditure (CAPEX) Financing
Plan
- Institutional Strengthening Program (ISP):
• ISO Certification (9001, 14001, 18001, 24512) and
• PSP, HRD, MIS / FIS
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, ,
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e o n a erSu l and SanitationProject:
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- Energy Audit / Electricity Distribution / CO2m ss on:
• Energy Conservation Measures
,
• Upgrade Equipment / New Technology
•specific)
- Other EE components:
• Demand Management: NRW and Water Conservation
• Economic Diameter of Distribution Pipes
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8/3/2019 CS44: Ho Chi Minh Water Supply and Sanitation Project: Mainstreaming Energy Efficiency by Hubert Jenny
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- Selection local Energy Audit Firm: Presence in country?
⇒ ADB Project Team due diligence during TA FFMission: Equipment, References, Budget, SitesSelect ion, …
–International Expert as part of the PPTA Team (1 PM)
• Subcontract local firm using TA provisional sum ($40K)
• Assess New technologies based on electricity
• Calculate payback and recommend EE investment plan
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-
not on distribution, pending redesign (ring mainvs. dedicated pipelines) and hydraulic modelingo e ne wor
- Sites selection: 5 WTPs, 5 Offices, 3 PumpStations
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A quick look at SAWACO (Saigon
Operating Expenses (OPEX):
- Water Production: Energy 27% (2008) increasing due to high costof bulk water (BOO/BOT)
- Water Distribution: Financial data: Not disa re ated from JSCs
Production 2006 2007 2008
- Typical range of energy share in OPEX: about 20%-50%
Bulk Water 38% 37% 35%
Chemicals 7% 8% 9%
Salaries 19% 21% 21%
Other O&M 13% 8% 8%
9TOTAL $23 Million $24 Million $27 Million
8/3/2019 CS44: Ho Chi Minh Water Supply and Sanitation Project: Mainstreaming Energy Efficiency by Hubert Jenny
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A quick look at SAWACO (Saigon
Electricity Fee:
- ransformer Power (kVA):
• Basic part of electricity fee is directly proportional to the totalpower of the transformers:
⇒ SAWACO: Most transformers are designed at 75% fullload and are less than 10 years old: Limi ted impact on
basic charge
- Power Factor: Price adjustment based on Power Factor
⇒ SAWACO: Installation of automatic capacitors to reachPow er Factor over 0.9: Some investment
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A quick look at SAWACO (Saigon
Electricity Fee:
o n a er orpora on
- Maximum Electricity Demand: Limit with soft starters and VSD,
since the basic part of the electricity fee can be influenced by themaximum demand
• tar r ang e tarter: x n
• Soft Starter: 3 x In
• VSD: 1 x In
⇒ SAWACO to equip large capacity/ head pumps w ith VSD
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PPTA RecommendationsElectricity Fee:
- Peak Electricit Demand: Limit electricit consum tion durin eak time (Energy Usage Monitoring):
• Peak rate: (9:30 - 11:30 and 18:30 - 22:30) VND1,830/kWh
–
• Normal rate: All other times VND920/kWh
⇒ SAWACO: M inimize operation during peak hours andmax imize during off peak and normal hours:
• Manage peak water demand through storage reservoirsrather than pumping by fil l ing up reservoirs.
CAPEX Investment in storage to be considered: “a plusfor EE”, but current study inconclusive
•
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PPTA Recommendations
Energy Efficiency Index (EEI) in kWh/ m3:
– Decision making for Renewal CAPEX or Maintenance OPEX. EEI
–Pump and Distribution control by valve, generating head lossincrease EEI
Energy Conservation Measures
– Replace fluorescent lamps & mercury high pressure lamps
–
– Automate / Replace cooling system / air compressors
– Improve Building Thermal Performance: Building envelope,
window treatment and double glass, roof insulation, doorsrefitting, smaller size of rooms (new or refurbish)
– Idiot Proof: Close windows, set AC temperature to 25 deg, office
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equipment standby and turned off, …
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PPTA Recommendations
- Total CAPEX = $5.1 Million
- Electricity Saving (ES) = 25,000 MWh/year ($1.3 M/year)
- CO2 Reduction = 18,889 T/annum (1 kWh = 0.43 kg CO2)
Examples
– hermal Performance = $0.02M (<24 y); ES = 13 MWh/y
– Transformers/Capacitors = $0.05M (<17y); ES = 46 MWh/y
– = = .
– Replace/Repair AC/Chiller= $0.12M (<10 y); ES=423MWh/y
- Replace Pumps = $0.312M (<4y); ES = 2,000 MWh/y
- Install VSD Pumps = $3.258M (<4y*); ES = 21,800 MWh/y
- Idiot Proof ECM => Savings # $12,000 / year
14(*) 3 VSD have a payback of 30, 9 and 6 years respectively
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PPTA Recommendations
Selection Criteria
- , , ,
Payback vs. CAPEX Investment P lan
-
- Short Term Payback (<3 years): $1.4 Million
- – .
- Long Term Payback (>5 years): $2.9 Million (EXCLUDED)
- $2 Million Grant from CEF 2010, including further studies
- 0.5 Million EE for BOO BOT ro ects Private financin
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Other EE Measures (included in
- NRW: From 42.8% (2005) to 32% (2015) with Service
PPTA/Project)
Pressure increasing from 5 m to 12 m over 10 years
- Water Conservation Program (WCP):
• Water Savings $16 Million (70 Mm3/year); Reinvest1.5% to fund WCP ($250K per annum)
• Limit water consum tion to 120 l dc
• Increase tariff 48% (March 2010); Condition Appraisal
• WCP: Community Water Conservation Education,
Appliance Labeling & Minimum Performance /Development Standards for Water Efficiency,
- Economic Diameter of Distribution Pi es: reducin head loss
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from over 10 m/10 km to less than 5 m/ 10 km
8/3/2019 CS44: Ho Chi Minh Water Supply and Sanitation Project: Mainstreaming Energy Efficiency by Hubert Jenny
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Operator Point of View (Not
covere un er e
- Electricity Distribution Survey
Reliabil ity
Safety
water service
& ISO 24512
Energy Efficiency
reven a cc en reven sse amage n orceOHAS/ISO 18001
- Linkage to ISO Certification and Continuous ImprovementProcess
- Preventative Maintenance Plan supporting EE
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- Critical Review of Process and Operation Procedures and linkage
to CAPEX Investment Plan
8/3/2019 CS44: Ho Chi Minh Water Supply and Sanitation Project: Mainstreaming Energy Efficiency by Hubert Jenny
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Summing Up
• Energy efficiency should be a high priority
• Energy savings will provide significant payback,short and longer-term
• Opportunities for carbon credit should emerge
• t m g t appear cu t an a t ona wor utthe benefits outweigh the effort required
• We need to set up a methodology so that Waterand Energy can work better together
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Merci
Xin Co On19
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Lessons Learned
Studies & Audits are usually conservative: Greater Savings and Shorter Payback should be expected
Need for Combined Energy Audit with Process and Operation Diagnostic (sector
specific): International Expert needs both skills in EE and in Water Sector
Refurbishment: Difficult in shiftin OPEX into CAPEX.
Short term / non sovereign loans can apply, due to short payback of investment: Is Grant funding warranted? How to help financing EE inrivate ro ects?
Streamline energy efficiency into operation: Policy statement frommanagement of water company
Linkage with CDM, Climate Change “difficult and top heavy”: Additionalitycriteria / Critical Mass => Financial approach!
PPTA Consultants sa ener efficienc was distractin !!! Is it worth to invest
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$70K for $2 to 5 Million CAPEX? YES, of course it is worth it!!!