Energy Efficiency and Cost minimisation in Water Supply Operations
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1 Energy Efficiency and Cost minimisation in Water Supply Operations Presented by: Jason Ip Manager Operations Riverina Water County Council LGNSW Water Management Conference August 2014
2 Background Local Government authority supplying potable water under provisions of NSW Local Government Act 1993 Supplies an area of approximately 15,000 sq.km with approximately 31,000 connections Based in Wagga Wagga, serving population of approximately 60,000 in Wagga, Lockhart, Urana and Greater Hume LGAs Operated as Southern Riverina County Council since 1938 supplying both electricity and water Reformed in 1997 as Riverina Water County Council to supply solely potable water LGNSW Water Management Conference August 2014
3 LGNSW Water Management Conference August 2014
4 Energy Facts and Figures 81 Electricity sites 9 to 11 GWh annually 24 large contestable sites ie. >100MWh Comprise over 90% of annual energy usage Typical annual energy and network costs $2.5M per year Energy Retail Provider is Origin Energy Network Provider is Essential Energy LGNSW Water Management Conference August 2014
5 Energy & Network Charges Energy Tariff Charges are charged by retailers based on actual volume of energy consumed (and when its consumed or ToU tariffs) Typically up to 30-40% of the invoiced bill Network Charges are charged by network providers to recover network costs of delivering energy (including both distribution and network) Up to 60-70% of the invoiced bill Maximum Power impacts to the network provider over the invoiced period Other charges: Supply Access Charge, Metering and Data Management Charge
6 Energy Tariff Charges Energy Tariff Charge Types: Flat Rate tariffs versus Time of Use tariffs Time of Use tariffs varies during weekdays and weekends Weekdays: Off Peak 10pm-7am, Shoulder: 9am-5pm, 8pm 10pm, Peak: 7am- 9am, 5pm-8pm Weekends: Off Peak Friday 10pm Monday 7am Flat Rate tariffs are the same regardless of when energy is consumed: Flat Rate Charge is approx. twice (2x) Off Peak ToU Charge, and similar to Peak and Shoulder ToU Charges Flat Rate charge has a daily availability supply charge ($ /day) approx. 3x greater than Time of Use availability supply charge ($ /day)
7 Energy Tariff Charges Energy Costs example for a 400kW Motor: Operating 9 hours Peak or Shoulder Tariff Periods Flate Rate: $1,287 daily energy cost ToU Rate: $1,171 daily energy cost (10% cheaper) Operating 9 hours Off Peak Tariff Flate Rate: $1,287 daily cost ToU Rate: $ 694 daily cost (46% cheaper) Remember to include: Other network charges in full cost assessment ie. Supply access charge, Meter reading & data management Estimated patterns of use for the year
8 Energy Charges - Summary Significant cost savings can be obtained by: Using less energy Ensuring installation of energy efficient devices Minimising energy wastage Ensuring the most cost effective energy tariff is used Significant savings are possible if there is ability to shift production to Off Peak electricity tariff periods Remember Energy Charges are typically only 30-40% of total invoiced amounts
9 Network Charges Regulated by Australian Energy Regulator (AER) For large sites, network charges can be up to 60-70% of the total invoice cost Riverina Water s annual bill is approx. $2.5M, of which approx $1.5M are Network Charges Network Charges are Riverina Water s biggest area of saving during twothirds of the year ie. during Shoulder and Off Peak water supply demand periods Management Strategies Time of Use tariff management Power Management ie. minimising instantaneous power impacts to nework
10 Network Charges Suggested network tariff management practices: Similar to managing ToU energy charges Off Peak Tariff Period: 10pm-7am: 9 hours + Weekends Shoulder Peak Tariff Period: 9am-5pm, 8pm-10pm: 10 hours Peak Tariff Period: 7am-9am, 5pm-8pm: 5 hours Maximise Off Peak Tariff production periods Only possible when there is latitude to shift timing of production Balance production requirements next to Shoulder Tariff periods, lastly followed by Peak tariff periods Shoulder periods offer greater operational flexibility than Peak tariff periods due to longer continuous periods Avoid activating additional tariff periods
11 Network Charges ToU Management at West Wagga WTP 7 days
12 Network Charges to 07:00 (if in Peak, cost $1,872) ToU Management West Wagga WTP - July 2014 Max kVA Off Peak
13 Network Charges Time of Use Network Power Tariff Management $3.5781/kVA $ /kVA $ /kVA Off Peak Peak Shoulder Power Cost (Off Peak) $ 1,234 Power Cost (Peak) $5,401 BEWARE! Power Cost (Off Peak) PLUS Power Cost (Peak) $1,234 + $5,401 = $6,635 Power Cost (Shoulder) $5,401 BEWARE! Power Cost (Peak) PLUS Power Cost (Shoulder) $5,401 + $5,401 = $10,802 Max kVA for July 2014
14 Network Charges Power kva Management - Power Factor Correction: Power Factor: a way of measuring how efficiently power is being used to perform work Definitions Real Power or Working Power kw Power that actually performs useful work Reactive Power kvar Power required to initialise and produce magnetic flux (eg. transformers, motors, relays) Apparent Power kva Total of Real Power kw and Reactive Power kvar Can be a large component of network charges (depending on tariff type)
15 Network Charges Power Factor Analogy: Working Power kw is the thirst-quenching portion of beer (ie. useful work) Mechanical work, pumping Reactive Power kvar is the foam (not useful work ie. not thirst quenching, but absolutely necessary as part of the beer) Inductive loads, motors, transformers, relays Apparent Power kva is the total contents of the mug Working Power kw + Reactive Power kva Power Factor (PF) is the ratio of thirst quenching portion of beer to the total contents of the mug
16 LGNSW Water Management Conference August 2014
17 Network Charges Power Factor P.F. = Real Power [kw] / Apparent Power [kva] Rearranged: Apparent Power [kva] = Real Power [kw] P.F. Poor P.F. will increase the Apparent Power kva and therefore increase energy network charges for each tariff period
18 Power Factor Improvements Waterworks WTP & Pump Station Previous P.F. 0.88, Network kva network costs $212k/yr Target P.F. 0.98, Estimated kva network costs $191k/yr Estimated savings $21k p/yr, P.F. Correction CapEx Cost $41k
19 Power Factor Improvements West Wagga WTP & Pump Station Previous P.F. 0.79, Network kva network costs $207k/yr Target P.F. 0.98, Estimated kva network costs $166k/yr Estimated savings $41k/yr, P.F. Correction CapEx Cost $32k
20 Energy Procurement Historical 3 year contract with energy retailer negotiated by REROC together with 12 councils Only included contestable large sites >160MWh Expired June 30 th 2014 Recent Contestable large site classification changed to >100MWh in 2013 Considered Local Government Procurement contract OR joint contract with: Goldenfields County Council & Wagga Wagga City Council Adopted joint Council contract to include ALL energy supply requirements ie. small & large sites, street lighting Total combined annual energy 32GWh Contract renewed annually, rather than 3 years
21 Energy Procurement Outcomes: Riverina Water obtained an approx. saving of $100k from previous contract price Approx. 10% saving on energy charges of $1M Comments: Council s turn around time to accept and appoint successful tenderers typically too long for traditional tendering process to meet market conditions NSW Local Government Procurement option is very viable as many other councils are satisfied Felt collectively, three biggest energy users in REROC could obtain similar or better results Suggested changes to NSW Local Government Act allowing JOCs could overcome some of these tendering issues to respond to changing market conditions
22 Summary: Efficiencies and Cost Minimisation Programme Assessment of most cost effective electricity tariffs Using less energy Installation of efficient motors, lighting Reduction of power wastage ie. unnecessary air conditioning, lighting, power Effective Time of Use management to reduce energy costs and network costs Power Factor correction to reduce network costs Combined energy procurement contractual agreements
23 Thank You Contact Details: Jason Ip Manager Operations Riverina Water County Council / jip@rwcc.nsw.gov.au LGNSW Water Management Conference August 2014
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