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Implementing Renewable Energy at Water Utilities

Implementing Renewable Energy at Water Utilities. Project 4424 November 8, 2012. Outline. Why renewable energy? Renewable energy technologies Implementation considerations Procurement options Funding opportunities

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Implementing Renewable Energy at Water Utilities

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  1. Implementing Renewable Energy at Water Utilities Project 4424 November 8, 2012

  2. Outline • Why renewable energy? • Renewable energy technologies • Implementation considerations • Procurement options • Funding opportunities • Case studies - opportunities, challenges, and barriers to project implementation

  3. Why renewable energy? • Economic Benefits • Offset purchased power • Possible green credits, REC, carbon credits • Environmental Benefits • Reduce carbon footprint • Mitigate effects of the water-energy nexus • Social Benefits • Very positive public perception

  4. Projected Electricity Price

  5. Cost To Treat Water Is Increasing Cost of energy is increasing Water demands are increasing Energy to treat water is increasing

  6. Renewable Energy Outlook

  7. Environmental Benefits • 1000 KWH of purchased electric utility power releases an average of 0.61 tons of CO2 equivalent. • Renewable reduces grid losses. US average grid losses = 6.5% • 1000KWH generated locally actually saves 1065KWH of electric utility generation (Source: USEPA eGRID2012)

  8. Water-Energy Nexus • 1kWh of purchased electric energy requires ~25 gallons of fresh water to produce • Water treatment and distribution average energy usage: 1250 - 2500 kWh/MG • For every million gallons treated, an additional 31,250 to 62,500 gallons of water resources are consumed.

  9. Renewable Energy Technologies • Solar • Wind • Micro-hydro • Geothermal • Tidal • Biomass

  10. Solar • Advantages: • Widely available • Mature technology • Low maintenance costs • Prices are decreasing • Disadvantages: • Intermittent power generation • Power output depends on solar irradiance • Large footprint

  11. Types of Solar Systems • Photovoltaic Systems – Converts sun light energy into electric energy • Thermal Systems – Recovers thermal energy from sun light

  12. Wind • Advantages: • Small site footprint • Mature technology • Disadvantages: • Low persistent noise depending on design • Aesthetic concerns • Intermittent nature • Sufficient wind not available in many areas

  13. Micro-hydro • Advantages: • Low maintenance costs • Mature technology • Installation in a pipeline or outfall • Disadvantages: • Power output is dependent on elevation changes • Limited availability in small sizes

  14. Types of Micro-hydro Systems • Hydroturbines • Pumps as Turbines Source: VATech Hydro

  15. Tidal • Advantages: • Predictable • High energy density • Disadvantages: • High capital investment • Location limited to tidal areas • Effect on marine life • Not a mature technology Image Source: www.reuk.co.uk

  16. Geothermal • Advantages: • Geothermal HVAC is a mature technology • Predictable • Disadvantages: • High capital investment • Potentially high maintenance costs Image Source: www.geothermalhvacsystems.com

  17. Biomass • Advantages: • High energy generation potential • Large variety of feedstock • Disadvantages:   • Air Emissions • Controversial NIMBY (not in my backyard) • High capital investment • Potential air permitting issues

  18. LEED • Constructing a LEED building is also a means of reducing energy consumption • Building thermal efficiency • HVAC and lighting efficiency • “Green” building materials

  19. Implementation Considerations • Space constraints • Cost of purchased energy • Utilization of renewable energy considerations • Coordination with the electric utility • Community impacts • Funding opportunities • Project delivery considerations

  20. Utilization of Renewable Energy UTILITY SERVICE Sell Energy Directly To Electric Utility RENEWABLE ENERGY SYSTEM UTILITY METER OR Offset Purchased Utility Power Source WATER TREATMENT FACILITY

  21. Utilization of Renewable Energy • Offsetting purchased power benefit depends on the purchased power rate • Time of use energy and demand charges • Demand ratcheting • Minimum billing demand limits • ALL UTILITY RATES ARE DIFFERENT!

  22. Renewable energy systems may not always offset demand charges No offset during peak period Period of low or no renewable energy generation during peak period (rain event, downtime, etc.)

  23. Selling Energy Directly to Electric Utility • Generated energy can be sold to electric utility • Many electric utilities are required to meet Renewable Energy Portfolio Standards • Energy generated from renewable sources may be “valuable” to some electric utilities

  24. Renewable Portfolio Standards and Goals Source:dsireusa.org

  25. Electric Utility Coordination Considerations • Parallel operation protection requirements • System modification can be expensive • Billing rate contract impacts • “Grandfathered” rates

  26. Community Impacts • View shed impacts • Solar and wind systems • Noise • Biomass and wind systems • Air emissions • Biomass systems

  27. Procurement Options • Direct ownership • System owner finances design, construction, and operation and maintenance • Third party project delivery • A third party finances design, construction, and / or operation and maintenance through a power purchase agreement (PPA)

  28. Direct Ownership • Advantages • Control power output • Can be built using traditional design-build or design-bid-build practices • Disadvantages • Requires upfront capital • Direct negotiation with electric utility • Municipalities generally do not qualify for government tax credits

  29. Third Party Project Delivery • Advantages • No or reduced upfront capital costs • Possibly no maintenance costs • Reduced risk • Disadvantages • Lower economic return • Long term price changes • May have protracted negotiation • PPA’s not available in all states

  30. Power Purchase Agreements

  31. Third Party Agreements Vary • Locate renewable energy on-site, and buy power through a PPA • Use a PPA to buy renewable energy generated off-site • Generate revenue from leasing land • Locate renewable energy on-site, but power is sent to the electric utility grid

  32. Funding Resources • Incentives are constantly changing • Appendix to the report lists current federal and state incentives • EPA, Energy.gov, Grants.gov • DSIRE – Database of State Incentives for Renewable Energy • State and local energy offices

  33. Funding Opportunities • Government and non-profit grants • ARRA (2009) funds have been committed • Bonds and Loans • Tax Rebates and Tax Credits • Tax Rebates: Increase tax refund • Tax Credits: Reduce the tax liability • Federal Investment Tax Credit until 2016 • Not available to municipal governments, but would be advantageous to non-municipal entities

  34. Project Steps • Review plant energy use, the available technologies and determine how the energy will be used • Evaluate the capital investment, financing options, and incentives • Identify the project barriers and risks • Identify public impacts • Determine the project delivery method

  35. Project Challenges • Upgrading existing structures • Roofs, walls, valve vaults, etc. • Electrical upgrades • Renewable energy equipment compatibility with electric utility requirements • Coordination with electric utility • Paralleling • Community Feedback

  36. Case Studies

  37. Case Study Sections

  38. Case Studies • Solar – Sothern Nevada Water Authority, NV • Wind – Inland Empire Utility Agency, CA • Micro-hydro – Portland Water Bureau, OR

  39. SolarSouthern Nevada Water AuthorityAlfred Merritt Smith Water Treatment Facility About the project • 130 kW solar PV system • Demonstration project with a local university • Most power comes from a gas-fired combined cycle power plant and smaller hydropower facilities • SNWA wrote the RFP, completed the preliminary design, and contracted the final design and permits to a consulting engineering firm

  40. SolarSouthern Nevada Water AuthorityAlfred Merritt Smith Water Treatment Facility Project Drivers • Project was an opportunity to become familiar with the technology Project Risks • Approval by the purveying members that control the budget Type of Contract • Design-Build Contract Community Acceptance • The facility is in the Lake Mead National Recreation Area, however, there no concerns about the solar installation.

  41. SolarSouthern Nevada Water AuthorityAlfred Merritt Smith Water Treatment Facility www.snwa.com/env/sustain_solar.html

  42. WindInland Empire Utility AgencyRancho Cucamonga, CA About the project: • Average flow of 5 MGD • Provides recycled water to the surrounding community • Includes primary, secondary, and tertiary treatment processes for producing recycled water in accordance with California Title 22 • To offset high-carbon emitting operations, IEUA set a goal to operate off the grid by 2020 • Wind power was selected as a viable technology due to its low cost per kilowatt hour and reliability with minimal maintenance • Additional renewable energy projects by IEUA include solar systems and fuel cells

  43. WindInland Empire Utility AgencyRancho Cucamonga, CA Project Drivers • Cost containment, operational reliability, electricity rate stabilization, and carbon footprint reduction Project Barriers • Approval from Federal Aviation Administration Type of Contract • 20 year Power Purchase Agreement with Foundation Wind Power Community Acceptance • Positive

  44. WindInland Empire Utility AgencyRancho Cucamonga, CA www.ieua.org

  45. Micro-hydroPortland Water BureauVernon Tank, Portland, OR About the project • Installed a grid tied micro-hydro turbine rather than replace a 16” PRV • Designed in-house for a flow rate 6.4 – 8.25 cfs through the turbine • The pipeline is 24” reduced to 10” at the turbine Challenges • Replacement of deteriorated piping and construction of a new valve vault Financing • $55,000 grant from American Recovery and Reinvestment Act of 2009 • $50,000 grant from Oregon Energy Trust upon completion of the project • Energy Trust also paid consultant fees up front for FERC and Oregon Water Right permitting • Portland Water Bureau also had approximately $35,000 earmarked from State of Oregon Business Energy Tax Credits (BETC) 

  46. Micro-hydroPortland Water BureauVernon Tank, Portland, OR Project Drivers • Portland Water Bureau seeking to meet the City’s renewable energy goals Project Risks • Installing a new generator on an existing 80 year old pipe and providing adequate thrust restraint for the equipment Project Barriers • Cost of structures to house the energy generation equipment, and the cost of upgrading the power supply to meet the generation requirements Type of Contract • Power Purchase Agreement (PPA) Community Acceptance • The project is in an underground vault and not seen by the community

  47. Micro-hydroPortland Water BureauVernon Tank, Portland, OR www.portlandoregon.gov/water/

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