vvEPA United States Environmental Protection Agency CLIMATE READY WATER UTILITIES &EPA SUSTAINABILITY BRIEF: ENERGY MANAGEMENT Return to Introduction Significant amounts of energy are needed to support key water sector utility processes, including the pumping, production, conveyance, treatment, distribution, discharge and reuse of water. Energy management refers to strategies to reduce energy costs through changes in timing and amount of energy consumption while maintaining or improving services. Management strategies include reducing energy demand, improving water and energy efficiency of system operations, energy optimization and generating energy on-site via energy recovery methods or renewable sources. While many utilities pursue energy management as part of best practices in the industry, others are managing energy use in response to budget limitations and increased service demand. As climate continues to change, energy management will become increasingly integral to effective utility management, adaptation and mitigation. BENEFITS OF ENERGY MANAGEMENT AS PART OF AN ADAPTATION PLAN • Improve efficiency and build energy independence: Integrating more efficient equipment and processes into current operations, coupled with establishing independent energy supplies, reduces risks associated with service interruptions due to power outages and can improve predictability of future energy costs. • Increase operational flexibility and resilience of service: Sustainable use of existing water and energy resources can reduce risks related to projected decreases in water supply and increases service demand. Energy management can increase utility efficiency and help balance overall energy and water needs, particularly as utilities begin to consider other adaptation options that may increase or decrease use. • Cost savings and opportunity to reinvest: More efficient use of water and energy often generates a net savings which can be reinvested to help address other challenges such as the need for rate increases, the need to address gaps in funding or can be used to support additional adaptation efforts. • Decrease carbon footprint: Implementing energy recovery or renewable energy projects can help increase sustainability by reducing demand on electric grids, use of electricity and associated greenhouse gas emissions. • Improve public image: Communicating energy management practices to customers can establish a utility as a leader in pursuing financially and socially responsible actions. For example, wastewater utilities with successful on-site generation are viewed as resource recoverers as opposed to waste producers. GETTING STARTED WITH ENERGY MANAGEMENT Depending on the unique challenges and opportunities at each utility, energy management can be approached in several different ways. Utilities may want to build on strategies that have been successful in the past or pursue new options. The following steps, which echo the Plan-Do-Check-Act approach found in EPA's Energy Management Guidebook for Wastewater ana Water Utilities, will help utilities get started with energy management. • Assess Current Energy Usage: Conduct an energy assessment or energy audit to understand energy use and begin identifying areas for improvement. Use results of these assessments to examine existing utility goals and begin to refine these goals or establish new goals to improve energy efficiency (see Resources section below). • Evaluate Budgets and Funding Opportunities: Determine availability of funds for energy management projects in short- and long-term budgets. If necessary, research and pursue funding available from state and federal assistance programs, foundations or community partners and energy performance contracting arrangements (see Resources section below). ADAPTATION STRATEGIES GUIDE FOR WATER UTILITIES Continued on page 2 ------- &EPA CLIMATE READY WATER utilities SUSTAINABILITY BRIEF: ENERGY MANAGEMENT ASA page 2 of 5 GETTING STARTED (continued) • Identify Strategies: Based on the steps above, develop criteria and identify specific activities or projects to support pursuit of adaptation options from the tables below. Review available resources, including case studies of effective energy management strategies at other utilities, to help identify appropriate strategies. • Plan to Involve the Community: Reach out to customers to gauge interest in energy management and to discuss potential energy management and water conservation initiatives. If a number of options are available, community feedback may help in identifying demand management options that will have the greatest impact. Options for including Energy Management practices as part of an overall adaptation strategy are provided in the tables below. Successful approaches will vary depending on current energy sources and utility type. Relative costs are provided on a qualitative scale ($ to $$$), and indicates that an option could be considered a "No Regrets" strategy. For more ADAPTATION OPTIONS information on No Regrets options, see Page 11 in the Introduction. (SUSTAINABLE PRACTICES) Click on the © icon to review the relevant Sustainability Brief. ENERGY MANAGEMENT-PLANNING COST Assess emissions footprint to develop a baseline for state or regional greenhouse gas emissions assessments and evaluations. $-$$ ^ Conduct an energy audit and set goals for energy use, conservation, recovery or alternative power V supplies based on audit results. $-$$ |a5| Develop an energy management team, including top-level management endorsement and ^ support, and plan alternative power supplies to support operations in case of loss of power. $ |»| Assess energy implications (energy for treatment, conveyance and distribution) of any potential ^ new source water (e.g., desalination plant, new wells). $ Assess the marginal costs and payback periods for purchasing higher efficiency equipment as part ^ of regular utility upgrades. $ Develop and use hydrologic models to project runoff, understand potential water quality changes (||l) (e.g., increased turbidity) and costs of resultant changes in treatment and incorporate model results into water supply planning. $ Model energy demand or understand existing models of regional electricity demand under future scenarios of climate change and regional growth. $ Estimate the reduction in greenhouse gas emissions resulting from water conservation and demand management. $ Evaluate and compare the life cycle energy costs of potable and recycled water to gauge feasibility of systems to reclaim and reuse water, including use of greywater in homes and businesses. $ ^ Train personnel on energy efficiency and optimization practices and utility energy management ^ goals and strategies, use short-term consumption forecasting and the effective use of automation. $ j3c| Develop an energy management outreach plan and research opportunities for funding efficiency ^ measures from state and local government assistance programs and other funding sources. $ Establish relationship with local power utility and workjointly towards power purchase agreements @ (e.g., rate structure to encourage use during low-demand periods) and on strategies to reduce seasonal or peak water and energy demands (e.g., water reclamation for use in power generation). $ ADAPTATION STRATEGIES GUIDE FOR WATER UTILITIES Continued on page 3 ------- &EPA CLIMATE READY WATER UTILITIES SUSTAINABILITY BRIEF: ENERGY MANAGEMENT page 3 of 5 ENERGY MANAGEMENT - OPERATIONAL Monitor utility energy use and evaluate progress towards goals (water and cost savings, emissions ^ reductions) and optimize operations by restricting some energy-intensive activities to times of reduced electricity demand (i.e., nighttime). $-$$ Assess current energy use by identifying energy intensive processes (using sub-metering) and ^ considering flows, load profiles, energy purchase design and operating schedules. $-$$ g3e| Reduce wastewater treatment plant loading by using equalization basins and system-wide leak ^ detection and repair to attenuate peak flows and loadings. $-$$ Practice best building practices including installation of high-efficiency lighting, and maintenance |3c| of boilers, furnaces, high efficiency Heating Ventilation and Air Conditioning (HVAC) systems, ^ motion sensor activating lighting, indirect fluorescent bulbs or using comprehensive lighting controls. $-$$ Practice water conservation and demand management through public outreach, water metering and offering rebates for water conserving appliances and fixtures. $-$$ 1®! Maintain vehicles to maximize fuel efficiency and reduce associated costs and emissions and ^ purchase fuel efficient and alternative fuel vehicles when replacing older models. $-$$ Install a Supervisory Control and Data Acquisition (SCADA) system for process monitoring and 1^) operational control (data for energy use optimization, detection of problems and compensation for seasonal or wet weather flows). $$ ^ Increase pumping efficiency by reducing and managing loads, modifying pumps, optimizing ^ motor and drive selection, or pursuing automated control. $-$$ Increase aeration efficiency by adding fine bubble aeration, improving surface aerators, installing ^ more efficient motors, blower Variable Frequency Drives or automatic dissolved oxygen controls. $$-$$$ ^ Increase dewatering efficiency by replacing vacuum systems, installing premium motors or ^ Variable Frequency Drives for water pumps. $$-$$$ Practice conjunctive use (i.e., optimal use of surface water and groundwater). $$-$$$ ^ Finance and facilitate water and wastewater projects to reclaim and reuse water, including use of greywater in homes, businesses and for irrigation needs (e.g., city parks). $$-$$$ ENERGY MANAGEMENT - CAPITAL/INFRASTRUCTURE COST @1 Purchase energy efficient models when upgrading equipment (e.g., pumps, motors). $-$$$ |a|. Establish alternative power supply via on-site power sources (renewable resources or energy ^ recovery projects) or multiple grid supply lines. $-$$ ^ Build less energy-intensive treatment systems where feasible, including the use of natural systems ^ such as engineered wetlands. $$$ l|ic| Implement green infrastructure on site to reduce energy use related to heating and cooling buildings. $-$$$ |g| Diversify options to complement current water supply to include those that require less energy for treatment, conveyance and distribution. $$$ Implement cogeneration technology to generate electricity and recover heat on site using methane off-gas from anaerobic digesters or from distribution (or collection) systems using turbines. $$-$$$ Build systems to reclaim and reuse wastewater for energy, industrial, agricultural or household use. $$$ ADAPTATION STRATEGIES GUIDE FOR WATER UTILITIES Continued on page 4 ------- &EPA CLIMATE READY WATER utilities SUSTAINABILITY BRIEF: ENERGY MANAGEMENT ASA page 4 of 5 EXAMPLE 1 Sheboygan Regional Wastewater Treatment Plant is managing its energy use in a way that is beneficial to both the bottom line and the environment. In 2002, rising energy costs spurred this utility to conduct a study of its energy use, establish a baseline for current use and investigate opportunities to increase system efficiency and generate power. Over the next five years, a plan focused on these opportunities was developed and implemented, resulting in the following changes to the plant's system operations and efficiency: • Motor upgrades and the installation of variable frequency devices reduced energy use by 157,000 KWh per year, resulting in an annual savings in energy costs of $5,300. • A combined heat and power (CHP) system comprised of microturbines to generate 700 KW per year of electricity using methane gas that was previously flared off as waste. This generation meets 90% of the utility's overall energy needs, including provision of heat for the digesters and facility buildings. • Through partnerships with the City of Sheboygan and local power utilities, Sheboygan Regional Wastewater Treatment Plant has been able to sell excess electricity generated by the CHP system back to the City. • A $901,000 investment in upgrades to the aeration system included the purchase of two energy efficient blowers and air flow control valves for basins, which saves $63,000/year in energy costs. Overall, the Sheboygan Regional Wastewater Treatment Plant has made a $2.5 million investment in these energy management projects with a 7- to 8-year payback period based on annual savings of about $500,000 in energy costs. By pursuing a more efficient energy system, Sheboygan Regional Wastewater Treatment is saving money and energy, reducing the release of waste products (methane gas) into the environment and has built important relationships with key partners in building sustainable practices across the City. EXAMPLE 2 Waco Metropolitan Area Regional Sewerage System (WMARSS) serves approximately 175,000 people in the cities around Waco, Texas. The concept of sustainability at WMARSS involves reconsidering byproducts formerly considered "waste" as potential resources. The "waste to energy" initiative at WMARSS supports production of heat and energy from concentrated high-strength organics/fat, oil and grease (HSO/FOG). Using HSO/FOG increases the production of methane (or"biogas") from the anaerobic digestion process. Local food producers and restaurants provide 600,000 gallons of HSO/ FOG per month to the WMARSS facility. This partnership also provides the additional benefit of keeping FOG out of sewer systems. The project expanded during the "Green Turkey Initiative" to accept fat, oil and grease from residents as well. From their $3.17 million investment, WMARSS now produces 600,000 cubic feet of biogas per day to supply one-third of the plant's electricity needs and 50% of the heating needs for its biosolids dryer/pelletizer. WMARSS will continue to reap the benefits of its sustainable energy management practices through reduced costs, increased efficiency, improved customer service and reduced reliance on purchased electricity. WMARSS has also invested in other standard energy management practices, such as improvements to its aeration system at a cost of about $400,000 and a payback period of 2.4 years. EXAMPLE 3 The Bureau of Environmental Services (BES) for the City of Portland, Oregon, has a history of improvements at its Columbia Boulevard Wastewater Treatment Plant that conserve and manage energy to reduce costs and demonstrate sustainable practices. Key areas of focus to manage energy have been to maximize the beneficial reuse of the digester gas (methane or biogas) produced in the anaerobic digestion process, improve energy efficiency through motor and lighting upgrades and control system improvements and prioritize energy efficiency improvements in new projects. A new building to house staff is also under construction and will be LEED Gold certified. Currently, approximately 80% of the biogas produced in the anaerobic digesters is used to produce electricity and generate revenue. A large percentage of biogas is used in a combined heat and power (CHP) system which consists of two 850 KW reciprocating engines. This facility produces approximately 40% of the plant's energy demand and saves BES approximately $750,000 per year in energy costs. Biogas is also reused in boilers to provide heat in buildings and provide ADAPTATION STRATEGIES GUIDE FOR WATER UTILITIES Continued on page 5 ------- &EPA CLIMATE READY WATER UTILITIES SUSTAINABILITY BRIEF: ENERGY MANAGEMENT page 5 of 5 EXAMPLE 3 (continued) backup or supplemental heat to the cogeneration facility. Since the mid-1980s, approximately 25% of the biogas has been sold to a local industrial facility, generating $300,000 in annual revenue. The remaining biogas (20%) is currently flared as waste; however, BES is exploring plans to utilize this waste gas, include potential CHP expansion, production of a compressed natural gas for vehicles or selling this gas to a local natural gas utility. BES has pursued multiple options for energy management, focusing on small projects that have both quick paybacks and continuing energy savings. In 2010, with the Energy Trust of Oregon's incentive program, BES completed two lighting retrofit projects that reduce energy costs by an estimated $10,000 annually with a payback period of less than one year. In 2011, BES upgraded the plant's compressed air system, which saves $17,000 per year. A current project will optimize dissolved oxygen (DO) control in the activated sludge process, supporting more precise DO set points and saving approximately $30,000 annually. The payback period for these improvements, after incentives, is estimated to be seven years. ADDITIONAL RESOURCES FOR ENERGY MANAGEMENT PUBLICATIONS Evaluation of Energy Conservation Measures for Wastewater Treatment Facilities (EPA) Ensuring a Sustainable Future: An Energy Management Guidebook for Wastewater and Water Utilities (EPA) Energy Efficiency for Water Utilities (EPA) Water Reuse Guidelines (EPA) EPA's Energy Efficiency for Water and Wastewater Utilities website EPA's State and Local Climate and Energy website EPA's WaterSense website Evaluation of Combined Heat and Power Technologies for Wastewater Facilities (Columbus Water Works) Water Consumption Forecasting to Improve Energy Efficiency of Pumping Operations (Water Research Foundation/California Energy Commission) TOOLS EPA Portfolio Manager (ENERGY STAR) EPA Energy Use Assessment Tool Water Energy SustainabilitvTool (UC Berkley) Water Conservation Tracking Tool (Alliance for Water Efficiency) Water Energy Simulator (Pacific Institute) FUNDING Energy Efficiency RFP Guidance for Water-Wastewater . USDA Rural Development Grants Projects (Consortium for Energy Efficiency) . Financing for Environmental Compliance - Water EPA Clean Water State Revolving Fund (with Resources and Tools (EPA) information on EPA Green Project Reserve) . EPA's Tools for Financing Water Infrastructure EPA Drinking Water State Revolving Fund ADAPTATION STRATEGIES GUIDE FOR WATER UTILITIES ------- |