CS44: Ho Chi Minh Water Supply and Sanitation Project: Mainstreaming Energy Efficiency by Hubert...

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

1



Why Water Projects Should be Energy Efficient?

2… because energy costs are significant and still going up!



’ 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)

3



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

4

, ,



e o n a erSu l and SanitationProject:

5



- 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

6



- 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

7



-

not on distribution, pending redesign (ring mainvs. dedicated pipelines) and hydraulic modelingo e ne wor

- Sites selection: 5 WTPs, 5 Offices, 3 PumpStations

8



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




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

10




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

11



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

•

12



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

13

equipment standby and turned off, …




- 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




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

15



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

16

from over 10 m/10 km to less than 5 m/ 10 km



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

17

- Critical Review of Process and Operation Procedures and linkage

to CAPEX Investment Plan



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

18



Merci

Xin Co On19



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

20

$70K for $2 to 5 Million CAPEX? YES, of course it is worth it!!!

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