ENERGY OPTIMISATION AND POWER PROGRAM

Energy optimisation has become a key focus within the water industry due to the fact that water utilities are a relatively large energy consumer, and energy costs continue to rise. Additionally, the Victorian Government has set renewable energy targets and in response to these Victorian water corporations have pledged to significantly reduce their carbon emissions by 2025. This program undertakes projects designed to reduce emissions and energy costs. The leader of this program is John Day from North East Water.

Key areas of interest:

·         Pumped Hydro

·         Floating Solar

·         Battery technologies

·         Waste Water Treatment Plant Aeration energy consumption optimisation

·         Large Scale Renewables

·         Gaps relating to renewable energy pledges

Recent Webinars

 

Current Projects

Large Scale Renewable Energy Project

Background

Victoria’s water corporations have pledged to significantly reduce their carbon emissions by 2025. With the prices of wind and solar energy continuing to fall, renewable energy generation (REG) offers an economic way to meet these targets. However, for single corporations, on-site REG projects can be too expensive, complex or small to meet individual targets. By jointly investing in a Large Scale Renewable Energy Project (LSR) corporations can achieve long term price certainty around energy generation, reduce their operational risk and complexity and reduce emissions, in accordance with the requirements of the proposed Statement of Obligations (Emission Reductions). The Large Scale Renewable Energy Project is about a shared commitment to renewable energy generation.

Description of feasibility study

The feasibility of the LSR Project is underpinned by two key objectives:

·         Jointly securing a commercially attractive long-term power supply, at better than individually available prices, and the promotion of new              renewable electricity generation in Victoria;

·         Emissions reduction, in accordance with the requirements of the proposed Statement of Obligations (Emission Reductions).

In 2016, Seed Advisory investigated five renewable energy generation options on behalf of IWN:

1.       Business as Usual – no investment in REG

2.       Voluntary group purchase of Large Scale (renewable) Generation Certificates (LGCs) from the market

3.       Power Purchase Agreement (PPA) with a new REG facility

4.       Direct investment in a new REG

5.       Direct investment in behind-the-meter REG

Study outcomes

The feasibility study recommended further detailed analysis of options 3 and 4. IWN ultimately decided that it should proceed with the Power Purchase Agreement option, on the basis that implementation of this option would be capable of achieving the project's key objectives without the added risks and complications involved in direct investment.

Current status of Large Scale Renewable Energy project

A road show was conducted during August and September of this year, during which water corporations were briefed on the LSR project. Following the road show, 16 water corporations agreed to participate in the joint PPA process and collectively committed to provide approximately 70GWh of load. Thus, the project successfully secured the participant demand required to go to the Expression of Interest (EOI) phase. The EOI was released in September and is now closed.

Eleven organisations responded to the EOI and these proposals were then evaluated by a Technical Evaluation Group (TEG). Some key points of interest that emerged from the EOI proposals were that solar was the preferred technology from a market perspective, that the ‘PPA only’ model was the preferred contractual model and that the prices put forward were competitive compared to recently reported market PPA transactions.

Endorsement is now sought from water corporations for the project to proceed to the formal Request for Proposal (RFP) stage. The RFP process will solicit legally binding proposals from interested organisations. Water corporations will also need to provide a firm load commitment for inclusion in the RFP. 

 

Small Scale Renewable Energy Project

Background

Victoria’s water corporations have pledged to reduce their carbon emissions by 2025 compared to their 2011/12 level. Committed reductions range between 8% and 80%.

With the prices of batteries, wind and solar energy continuing to fall, on-site generation and storage may offer an economic way to meet emissions targets while securing energy supply.

Description of trial

North East Water (NEW) recently commissioned the Renewable Energy Alliance to install a 40kW solar array and 42kWh lithium ion battery bank at the Yackandandah water treatment plant.

Commencing operations in September 2017, this clean energy system should generate sufficient power and store enough energy to operate the plant independently of the mains power grid for most of the year.

Being grid-connected and driven by smart energy management software, the system can also export power to the grid when electricity prices peak, and draw power from the grid when prices fall, further reducing power bills.

The battery bank avoids the need for a back-up diesel generator to cover grid black-outs and brown-outs.

As a member of the community coalition Totally Renewable Yackandandah, NEW has pledged to power local operations with 100% renewable energy by 2022.

Next steps

Over the next 12 months, RMIT University will study the generation from the clean energy system and the consumption patterns of Yackandandah water treatment plant, to determine:

•             how to operate the system at lowest cost

•             the return on investment of the system

•             whether the system could have been configured differently to save more money

•             projected future costs of on-site generation, including the price tipping point for batteries (i.e. when on-site energy storage becomes                  cheaper than importing mains power)

•             applicability to other water treatment plants

IWN will publish the results of this study as a clean energy project guide for all water corporations.

 

Energy Procurement Project

Background

In 2016, the Victorian Government required government organisations to set renewable energy and carbon neutrality targets.

In response, IWN began investigating alternatives to fixed-price contracts for electricity supply to manage water corporations’ escalating energy costs, while curbing greenhouse emissions.

New options include purchasing competitively priced electricity and GreenPower directly from the wholesale market. This allows corporations to tailor their purchases to match their demand - e.g. reflecting on-site renewable generation or daily and seasonal fluctuations in usage. However, financial or physical insurance products are needed to smooth out price spikes in the wholesale energy market.

Description of trial

In 2016, 2017 and 2018, Goulburn Valley Water, North East Water, Western Water and Yarra Valley Water are trialling the direct purchase of electricity on the spot market through an intermediary.

Next steps

The results of this trial will be used to develop a wholesale procurement guide for all Victorian water authorities, detailing the risks and benefits of various direct purchase and insurance options, including:

•             Price caps – the customer pays no more than an agreed maximum rate

•             Block (Hedge) pricing – a fixed price is agreed for a specified volume of peak and off-peak electricity per month, quarter or year

•             Average rate – the customer pays no more than the forecast average price, and pays the actual price when lower than the forecast

•             Demand response – the customer sheds non-essential load during price spikes and / or runs back-up generation

•             The ability to incorporate alternative purchasing arrangements such as:

- Power Purchase Agreements (PPA) – competitive, fixed-price, renewable electricity supply over 10 to 25 years              

- Shared Generation Agreement – between several authorities, sourcing electricity from on- and off-site renewable facilities, with surplus              generation sold to the grid, and shortfalls purchased from the grid

Current Status of Trial

The project team are finalising work on a risk assessment policy for spot pricing and the lessons learnt component of the project for wider distribution to IWN members.

Future Projects

Aeration Benchmarking Phase 2

Background

Aerators at Waste Water Treatment Plants (WWTPs) are a significant source of energy consumption by water corporations. An aeration efficiency benchmarking trial was carried out across 17 Victorian and interstate Waste Water Treatment Plants in 2016 and 2017 to determine energy benchmarks for WWTPs in relation to their peers, to highlight plants that could potentially be improved and to allow the industry and utilities to track plant performance over time.

Next steps

Following this trial it was deemed that further detailed analysis of the Victorian WWTP benchmarking data was required. The IWN energy group will undertake this analysis in the near future and utilise the results to identify innovative energy efficiency measures that could be implemented across the industry. They will also develop best practice case studies on the high performing water treatment plants to guide the industry, and provide guidance on the use of sub-metering to improve energy management.

 

Sub metering Project

Background

The aim of this project is to assist water corporations with the implementation of sub metering programs at their waste water treatment plants (WWTPs). Energy consumption at waste water treatment plants represents a significant proportion of total water corporation energy spend with large individual plants using in excess of $600,000 p.a. in electricity. Currently, little is known about the actual energy consumption of the individual high energy use systems within WWTPs, and due to the process complexity and large number of sub-systems within the plants, the current standard of whole of site metering does not provide sufficient detail to be able to identify where energy inefficiencies exist.

It is hoped that by installing sub metering hardware at WWTPs, specific energy consumption data relating to key sub systems and industrial processes within WWTPs will be obtained, thus allowing water corporations to accurately assess energy performance and pinpoint inefficiencies and areas for improvement.

Description of trial

Three individual water corporation sites will participate in this project and collect data. Key site energy consumers within each of the participating WWTPs will be identified and electric sub meters will be installed. Data analytics platforms will also be installed to perform measurement and verification, baseline plant processes, measure energy performance and highlight areas of improvement or issues when they arise. The trial will be carried out over the course of 12 months, after which the success of the project will be assessed.

Project lead Simon Prunster - Yarra Valley Water

Current status of trial

The strategic assessment form for this project has been submitted and is awaiting approval

 

Pumped Hydro Energy Storage Feasibility Study

This project will investigate the feasibility of a Pumped Hydro Energy Storage (PHES) system on one of Goulburn Valley Water’s assets, Trawool reservoir.  The project is being led by a community group who have conducted a pre-feasibility study at the site, and would like to investigate a renewable energy supply as a source of power to their townships. IWN is supporting the feasibility study to inform its renewable energy program and to better understand the capabilities of the technology. 

Project - Lead Andrea Pogue Goulburn Murray Water

Current status of project

IWN’s Program Director has approved IWN’s financial support of the Pumped Hydro Energy Storage Feasibility Study project. The community group involved are in the process of applying for a government grant to cover the remaining cost of the project.

 

Floating Solar Value Determination Project

The IWN energy group is currently exploring options for a floating solar project. They expect to have a Project Strategic Assessment completed by early 2018. The leader of this project is Rod Curtis from Western Water.

Completed Projects

Pump Checkr Pt 1

Background

80% of the lifecycle cost of water pumping systems is from energy and maintenance. But 70% of wastewater and 40% of water pumping stations in Australia have inefficient pumps. This increases energy consumption, maintenance costs, downtime and the risk of premature failure.

Traditionally, qualified technicians check pump performance intermittently or manually interpret data collected by sensors. These methods can be costly, prone to human error and slow to detect problems.

Description of trial

The Pump CheckR™ algorithm is designed to compare real time data from sensors with performance benchmarks, and triggers alerts when pump, fan or blower performance becomes suboptimal. It can also determine the most cost-effective maintenance schedule.

In 2016, IWN, North East Water, GHD and Schneider Electric installed the Pump CheckR™ algorithm at pump stations in Wangaratta and Wodonga. These pump stations were monitored for several months using Pump CheckR™ to test the effectiveness of using a data analytics tool to monitor the performance of pump stations.

Trial outcomes:

The 2016 trial found that the Pump CheckR™ algorithm could identify:

• pump failures not otherwise detected

• ways to reduce energy costs by 10 to 15%

• opportunities to reduce scheduled and unscheduled maintenance and breakdowns

• financial costs of underperforming pumps

Next steps

Further testing is required before this product can become a business as usual tool for water corporations. IWN, with the support of GHD & Schneider, seeks expressions of interest from water corporations wishing to trial Pump CheckR™ at their water or wastewater sites.

 

Aeration Benchmarking Part 1

Background

Aerators at Waste Water Treatment Plants (WWTP) have been identified as the largest consumer of energy within a water corporation. Inefficient aerators and aeration systems increase operating costs and greenhouse emissions. In 2013/14, Water Services Association of Australia (WSAA) commissioned GHD to benchmark the energy use of WWTPs owned and operated by 17 urban water utilities across the country. The purpose of this exercise was to determine energy benchmarks for Australian WWTPs in relation to their peers, to highlight plants that could potentially be improved and to allow the industry and utilities to track plant performance over time.

Description of trial

In conjunction with IWN, WSAA undertook a second round of aeration efficiency benchmarking in 2016 and 2017. 17 Victorian and 17 interstate water corporations participated in this co-badged project. By working together, the industry avoided duplication of effort, and ensured the results were broadly applicable and can be rapidly disseminated.

It is hoped that the findings will assist in identifying new aeration innovations that can be trialled in the poorest performing plants, with the aim to reduce energy consumption by 20% within 12 months of installation.

Current Status of trial

Further analysis of the Victorian plants is required. See Phase 2 of the Aeration Benchmarking Project above in ‘Future Projects’.