european water and sanitation service vs sustainable ... · städtische werke magdeburg gmbh...
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Städtische Werke Magdeburg GmbHManagementAss. jur. Helmut HerdtParis
17.11.2009
European Water and Sanitation Service vsSustainable Development
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 2
1.Short Presentation SWM Magdeburg
2. Drinking water supply Germany
3. Example: TWM
4. Effects of Urban Development East on the technical infrastructure based on the example of SWM Magdeburg
5. Contact Data
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 4Page 4
1. SWM Magdeburg: Facts and Figures
Shareholders:State capital – Magdeburg 54%
E.ON Avacon AG 27%
Gelsenwasser AG 19%
2008 Financial Year
Turnover: approx. EUR 393 million
Employees 704
Trainees 50
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 5Page 5
1.1. Short Presentation - Our Areas of Business
I Electricity
approx. 135,000 private customers, market share a good 95%, effect of customer
switching continues to be marginal
Business and special customers: Magdeburg and nationwide customer acquisition
Target group: "medium sized businesses" - SWM advantage: fair prices with high
service quality and flexibility
I Natural Gas
approx. 35,000 private customers, market share of 98%
Business and special customers: Magdeburg and nationwide customer acquisition
SWM advantage: fair prices with high service quality and flexibility
I Heat
District and local heating, largest customers: housing associations and co-
operatives, high proportion of multi-storey residential buildings in eastern Germany
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 6Page 6
1.2. Other Activities and Holdings (1)
I Drinking Water
Supply of 230,000 Magdeburg residents with drinking water from Colbitz-Letzlinger
Heath
I Waste Water:
first and one-of-a-kind transaction in Germany: invitation to tender for a license for
waste water 100% holding in AGM, technical and commercial
management by SWM
I AGM: Abwassergesellschaft Magdeburg mbH
I SWN: SWM Netze GmbH
Electrical grid operator, prices are regulated by the Federal Network Agency
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 7Page 7
1.2. Other Activities and Holdings (2)
I Waste-to-Energy Plant: Müllheizkraftwerk Rothensee G mbHOne of the largest waste-to-energy plants in Germany, 2008: 630,000 tons, produces district heat for 30,000 households, power generation for SWMShareholders: 49% SWM, 51% EEW (E.ON Energy from Waste)
I SWS: Stadtwerke – Altmärkische Gas-, Wasser- und Ele ktrizitätswerke GmbHAreas of business: power, natural gas, water, heat, waste water operationsShareholders: SWM: 37.45%, Gelsenwasser: 37.45%, City of Stendal: 25.1%
I MDCC: Magdeburg-City-Com GmbHTelecommunications services in the state capital and Saxony-AnhaltShareholders: 49% SWM, 51% Telecolumbus Multimedia GmbH
I ENERMESS: Energie Mess- und Servicedienste GmbHMeter manufacture and repair, metering services, SWM holding: 40.5%
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 8Page 8
1.2. Other Activities and Holdings (3)
I HSN: HSN GmbH
High voltage networks in the state capital, Magdeburg, and northern
Saxony-Anhalt
Shareholders: 74.9% E.ON Avacon, 25.1% SWM
I TWM: Trinkwasserversorgung Magdeburg GmbH
(Public Water Utilities Magdeburg)
Supply of drinking water to 18 public water utilities and 6 districts
SWM holding: 29.8%
I MHG: Magdeburger Hafen GmbH
largest inland harbor in central Germany
SWM holding: 10%
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 9
1. Brief Portrait SWM Magdeburg
2.Drinking water supply Germany
3. The example: TWM
4. Effects of Urban Development East on the technical infrastructure based on the example of SWM Magdeburg
5. Contact Data
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 26
1. Brief Portrait SWM Magdeburg
2. Drinking water supply Germany
3.The example: TWM
4. Effects of urban development East on the technical infrastructure based on the example of SWM Magdeburg
5. Contact Data
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 27
Company Portrait TWM (1/3)
Established: 19th April 1994
Shareholders: 19 shareholders in total
(almost all customers are shareholders )
29.80 % Staedtische Werke Magdeburg GmbH
Employees: 111, plus 10 apprentices
Fields of activity: drinking water, treatment of water for various
local energy providers and water associations
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 28
Company Portrait TWM (2/3)
I TWM GmbH is a preliminary supplier for large customers in 6 districts and
2 independent cities
I TWM GmbH supplies almost 800,000 residents with drinking water in a supply
area comprising 5,600 km2
I 338 cities and municipalities are supplied via 220 drinking water connecting
points
I The facilities of TWM GmbH for acquiring and treating water enable a daily
production capacity of approximately 200,000 m3
I The expansion of the corresponding drinking water protection areas
encompasses 31,745 ha
I The primary water utilities are the water utilities Colbitz and Lindau
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 29
Company Portrait TWM (3/3)
Haldensleben
Magdeburg
Dessau-Roßlau
Wittenberg
Burg
District of Jerichower Land
District of AnhaltBitterfeld
Wittenberg District
Harz District
BördeDistrict
WZV LK Schönebeck
Heidewasser Burg
HeidewasserTucheim
Heidewasser Zerbst
WV Burg
Heidewasser Gommern
TAV Menz,Wahlitz
WAZV "Bode-Wipper"
SW SchönebeckSchönebeck
SW Magdeburg
Köthen
Bernburg
Heidewasser Roßlau
HeidewasserROVEG
DESWA(ROVEG)
HeidewasserTornau
SW Lu.Wittenberg
Dt.Hydrierw.Rodleben
WWAZ
Heidewasser Haldensleben
SW Haldensleben
TAV Börde
WAZV "Huy Fallstein
WAZVHuy Fallstein
Halberstw.GmbH
SW Wernigerode
AV Blankenburgunder certaincircumstances
TAV "Oberharz"
WernigerodeStassfurt
Zerbst
Salzland District
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 30
Demographic Development in Saxony-Anhalt
General Population Development in the State of Saxony-Anhalt
in the base year 2005 *1) : 2,469,716 residents
Forecast year *2) : 1,976,237 residents
Forecast year 2050*3) : 1,562,000 residents
Sources: *1) Regional Statistics Office Saxony-Anhalt, Halle; *2) "4th regionalised population projection 2005 to 2025", Regional Statistics Office Saxony-Anhalt, Halle; *3) "11th coordinated population projection", Federal Statistics Office, Wiesbaden; *4) own calculations on the basis of data material published by the State/Federal Statistics Office
Forecast: The number of residents supplied by TWMdrops by 30.5% in 2050 to 544,997 residents *4)
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 31
Water consumption in 2007
The share of water consumption attributed to industry amounts to less than 5%. The compensation of the demographic decline by industry is therefore not an option.
Total volume supplied: 39,296,806 [m3/a]
thereof not including industry: 37,488,215 [m3/a]
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 32
The average consumption of TWM customers is considerably above the state average
12691
13195
126108110
68114
125128
93108
132137
13097
132140138
104132
137125
215128128
0 50 100 150 200 250
Durchschnitt Deutschland (2004)Durchschnitt LSA (2006)
Durchschnitt Kunden (2007)DESWA(ROVEG)
TAV BördeSW Lu. Wittenberg
Heidewasser/ROVEGHeidewasser TornauHeidewasser RoßlauAV Blankenburg u.U
WZV LK SchönebeckTAV Wahlitz/Menz
Heidewasser TucheimHeidewasser Gommern
SW SchönebeckWV Burg
WAZV Huy FallsteinHalberstadtw. GmbHHeidewasser ZerbstHeidewassser Burg
Heidewasser HDLStädtische Werke MD
WWAZ WolmirstedtTAV "Oberharz"
SW WernigerodeSW Haldensleben
WAZV "Bode-Wipper"
Spezifischer Verbrauch in [l/EW*d]
Vergleich der spezifischen Verbräuche bei den EW de r TWM-Kunden Comparison of Specific Consumption Levels of reside nts in the TWM customer areas
Specific Consumption in [L/resident*d]
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 33
Projections of the annual total supply volume of drinking water from 2005 to 2050 (based on various assumptions)
Jahr 2007 Jahr 2025 Jahr 2050
bei gleichem spezif. Verbrauch (V1) 37.487 31.025 26.069
bei Rückgang um jeweils 5% (V2) 37.487 29.474 23.532
bei Rückgang um jeweils 10% (V3) 37.487 27.922 21.120
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
Tm
3/a
Entwicklung der jährlichen Gesamtlieferung in Tm3/aDevelopment of Total Annual Supply in Tm 3/year
with unchanged consumption (V1)
with 5% decline respectively (V2)
with 10% decline respectively (V3)
Year 2007 Year 2025 Year 2050
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 34
Summary of the Projections
• Demographic declines directly influence the turnover volumes of TWM GmbH
• Declines in drinking water turnover associated with population levels from approximately 37,000 Tm3/year (2007) to approximately 26,000 Tm3/year (2050) are anticipated (statistical calculation variant)
• As an example, it was assumed that the consumption behavior (specific consumption in I/resident*d) would drop by 5% and/or 10% (theoretical trend estimate).
• A 10% drop in the specific consumption would correspond to a decline in turnover totalling approximately 21,000 Tm3/year
Irreversible trend:Declining turnover across the entire supply area that would impact the entire network system:
• Insufficient capacity utilization of water utilities, technical facilities, network areas
• increase in costs attributed to the fixed cost trap
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 35
Strategies to adjust to the new challenges
Strategies Costs
Demand / Consumption
Production /Distribution
Waterresources
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 36
Strategies to adjust to the challengesDemand/Consumption
Decline in water consumption
due to:
Additional water consumption
due to:
Declining population across
the entire supply area
Irrigation by agricultural
operations
Decline in production
attributed to industry and
the trades
Development of new industry
and the trades
Decline in specific
consumption
Rinsing of the line systems
Opposing Trends in Water Consumption
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 37
Strategies to adjust to the challengesDemand/Consumption
Approaches in Policy:
• Influence policy to reduce the number of industrial consumers with their OWN water supply
• Irrigation by agricultural operations
• There are limits on TWM's sphere of influence
• Development of strategies to adjust to the uncontrollable trends
• Partnership in large regions
To what extent can TWM influence the demand/consumption?
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 38
Strategies to Adjust to the New ChallengesWater Resources
Evaluation
• of present quantity and quality of the resources and the future trend
• current water rights, drinking water protection areas (adjustments to
future conditions)
Examples:
• Project for managing the river Ohre in consideration of climate change(water resources for infiltrating the water utility Colbitz)
• Project for potential management of Westfläming (water utility Lindau)with reassessment of TWSZ
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 39
Strategies to adjust to the new challengesProduction/Distribution
• Situation: Production in 19 water utilities, thereof 2 primary water utilities
• Plan: Shut-down of small water utilities, optimized operation of remainingwater utilities
Distribution:
Situation:
at present, the network capacities are already not fully utilized
Plan:
• Optimization by means of shut-down/downsizing and/or newconnections
• separate solutions for decentralized areas
• Collaboration with the TWM customers to optimize the utilizationof network capacities
Production:
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 40
Strategies to adjust to the new challengesProduction/Distribution
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 41
Summary
Population Decline in the Supply Area
declining drinking water turnover - new challenges
I Aspects of demand/consumptionI Water resourcesI Production/distributionI Costs
Analysis of the supply area with respect to critical points Drafting of a sweeping, sustainable concept that implements
appropriate technologies
Question: How much water can we provide to whom at what price in consideration of circumstances?
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 42
1. Brief Portrait SWM Magdeburg
2. Example: TWM
3. Drinking water supply Germany
4.Effects of Urban Development East on the technical infrastructure based on the example of SWM Magdeburg
5. Contact Data
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 43
4.1.CURRENT Situation: Population Trend
1990 2000 2008 20202.873.957 2.615.375 2.381.872 2.115.271
State capital Magdeburg(Source: SC Magdeburg)
1990 2000 2008 2020 2025278.800 231.450 229.250 212.600 208.300
State of Saxony-Anhalt(Source: Ministry for Regional Development and Transport)
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 44
4.1.CURRENT Situation: Problem Areas in Supply
I Massive investments have been made since the early 90's
I Considerable improvement in the security of supply and disposal and environmental quality
I Economic change and change in the social structure
I Population decline and migration
I Technical infrastructure capacities not fully utilized = immenseoperational problems
I Shut-down of facilities - permanent losses in value
I Effects on the financing structure (amortization)
I Additional operating costs and capital costs for necessary measures to adjust the technical infrastructure
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 45
4.2. Presentation of the Federal Government Funding Programs (1/2)
What qualifies for funding?
A Measures for continuing with the city developmentconcept, further preparation, planning, andpublic relations
B Regulatory Measures - Conversion of the technical infrastructureI Facilities for supplying electricity, gas, water and heatI Facilities for treating and disposing of wastewater
Funding of regulatory measures and facilities owned by third partiescurrently amounts to no more than 50 % of the fundable costs.
Urban Development East –Program part "Upgrading of City Districts and Quart ers"
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 46
4.2. Presentation of the Federal Government Funding Programmes (2/2)
Funding of flat building Funding of urban construction
Funding of flat buildingUrban development - East
Guidelines for upgradingflats
Flat ownershipguidelines
Funding of flat buildingGeneral
Guidelines for upgradingflats
Flat ownershipguidelines only for housing companies
Upgrading of citydistricts and quarters
Downsizing of flats withpermanent vacancies
also for utilities
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 47
4.3. Experience Urban Development East from SWM'sStandpoint (1/3)
Application period
Program years 2002 up to and including 2009
(financial years 2002 to 2013)
Total investment*
EUR 35.00 million
Amount of funding applied for *
EUR 17.50 million
Funding received
EUR 0.19 million
*Multiple responses possible with new applications due to notices of refusal
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 48
4.3. Practical Experience Urban Development East f rom SWM's Standpoint (2/3)
0,19
24,13
3,560,64
Öffentliche Hand Ver- u. Entsorgungsunternehmen Wohnungswirtschaft Private
Urban Development East in Magdeburg - Program Part UpgradingOverview approvals sorted by grant recipientsProgram years 2002 – 2009 (As of: 23.10.2009)
(Source: BIG Städtebau Saxony-Anhalt)
Total Grants:EUR 28.52 million
Grants to SWMEUR 0.19 million.
Public sector utilities and waste management companies
Housing companies
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 49
4.3. Experience Urban Development East from SWM'sStandpoint (3/3)
Circumstances
I Evaluation of Urban Development East first period is complete
I Continuation of Urban Development East has been decided on with
final effect up to the program year 2016
I The results of the evaluation and design of the urban development
program's content including the technical infrastructure will be published in
detail
however
the technical infrastructure based on the practice observed on the part of
Urban Development East to date has not been considered and/or only to
an insufficient extent
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 50
4.4. Problem Areas with the Drinking Water Supply ( 1/5)
The drinking water supply network must fulfill two basic conditions:
I Supply of recipients with sufficient quantity and quality
I Compliance with requirements of disaster protection(fire fighting)
Generally the fire-fighting requirements are decisive in termsof dimensioning.
I Based on today's regulations, most drinking water pipescould be reduced to at least half their current size for reasons relating to fire prevention.
I However, the decline in consumption – by means of which the networkis financed – must be assessed as being much greater.
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4.4. Problem Areas with the Drinking Water Supply ( 2/5)
Consequences of over-dimensioning
I lowest flow rates and
I resultingly long dwell times of drinking water in the network
Operational consequences
I formation of deposits (growth in the lines)
I Increase in drinking water temperature and consumption of oxygen
I excessive bacterial growth and accumulation of germs
Long-term consequences (if action is not taken in time)
I considerable financial difficulties
I considerable communication expenditure on the part of the utility
and
I damage to the utility's image and that of the residential area
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 52
0.05.010.015.020.025.030.0
mea
ndw
ellt
ime
[d]
1990 2000 2007 2010
mean dwell time in Magdeburg - Olvenstedt
4.4. Problem Areas with the Drinking Water Supply ( 3/5)
maximum permissible dwell time
I The dwell time was calculated with the mean flow rate and the network length
I based on experience, dwell times of greater than 5 days should be avoided
1990 5.02 0.40
2000 17.49 0.90
2007 22.09 1.60
2010 28.98 1.60
Magdeburg StendalOlvenstedt South
Mean dwell time [d]
Year
Simulation of the drinking water network Magdeburg – Neu Olvenstedt
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 53
4.4. Problem Areas with the Drinking Water Supply ( 4/5)
Investment costs Halle Magdeburg Dessau Stendal totalSilberhöhe Olvenstedt Zoberberg Süd[€ million] [€ million] [€ million] [€ million] [€ million]
Investments district heating 3.04 1.86 0.36 1.63 6.90Investments drinking water 1.78 2.61 0.30 1.07 5.76Investments wastewater 2,39 1,87 0,24 0,95 5,45Sum 7.21 6.34 0.90 3.65 18.11
Capital costs Halle Magdeburg Dessau Stendal totalSilberhöhe Olvenstedt Zoberberg Süd[€ million] [€ million] [€ million] [€ million] [€ million]
Capital loss district heating 2.88 2.03 0.14 3.48 8.53Capital loss drinking water 1.20 2.12 0.17 0.50 3.99Capital loss wastewater 1.72 1.35 0.17 1.07 4.31Sum 5.80 5.50 0.48 5.05 16.83
Costs of Adjusting the Technical Infrastructure by 20 09
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 54
4.4. Problem Areas with the Drinking Water Supply ( 5/5)
Summary:
I The network must be downsized where it is no longer needed.
I In general, the network is too large and large sections must be reduced in size.
I The capital value of the old network must be written off as a loss.
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 55
Redimensioning of a network in a Magdeburg quarter (1/2 )
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 56
Redimensioning of a Network in a Magdeburg quarter (2/2 )
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 57
4. 5. Closing Remarks
I The urban development process to date demonstrates that not
only disposing of vacant residential complexes, but also adjusting
the technical infrastructure is a task of considerable economic
proportions.
I Adjusting capacities is the only way to succeed in order to also
guarantee security of supply and high energy efficiency and
water quality in future while maintaining affordable prices.
I Stakeholders are also affected by requirements in terms of energy
and climate policy - the challenge associated with the issue of
"energetic urban renovations/ energy-efficient city" affect the
whole of society as well as the adjustment to climate change.
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 58
4. 5. Closing Remarks
Guaranteeing the sustainability of cities is not only the task of the communities, the housing and public utility industry!
But also:
I Cooperation and involvement in partnership of all stakeholders associated with urban development
I Collective action and an interdisciplinary collaboration are needed
I Adjusting the technical infrastructure to declining demand is a task of considerable economic proportions
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 59
4.6. Approaches
I The federal government, states, and municipalities must assume joint responsibility and work closely together with the housing,public utilities, and waste management companies
I Urban development funding as a collective task must be expanded to include all departments promoting infrastructure (Ministry of the Economy and Environment), that is, funding eligibility criteria and/or mechanisms must be readjusted, limiting funding to urban development areas does not make sense, inclusion of EU economic funding programs to support economic development
I All funding programs in this context should undergo critical evaluation, a focus on future challenges
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 60
4.6. Approaches
Otherwise:
I considerable price increases on the part of public utilities andwaste management companies,
I excessive socialization of the costs for the remaining residents and customers
I existing local disadvantages for residents and the economy wouldcontinue to increase severely
Helmut Herdt , Städtische Werke Magdeburg GmbH Seite 61Helmut Herdt, Public Utilities Magdeburg GmbH Page 61
Any questions?
Then please contact:
Städtische Werke Magdeburg GmbH
Chief Executive Officer
Ass. jur. Helmut Herdt
Am Alten Theater 1
D-39104 Magdeburg
Telephone: +49 (0)391 587-2200
Internet: www.sw-magdeburg.de
E-mail: [email protected]