the water-energy nexus: a global problem, with local solutions

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Kateri Callahan, President Alliance to Save Energy April 22, 2010 The Water-Energy Nexus: A Global Problem, with Local Solutions

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Kateri Callahan, PresidentAlliance to Save Energy

April 22, 2010

The Water-Energy Nexus:A Global Problem, with Local Solutions

Presentation Outline

A few words about the Alliance National EE Efforts Impacting Water

Use “Watergy”: A Proven Solution –

Untried in the U.S.

What is the Alliance to Save Energy? Mission: To promote energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security.

Organization: Staffed by 60+ professionals32 years of experience$12 million annual budgetRecognized as the premier energy efficiency organization in the world

The Alliance Around the Globe

Branch Offices in:

India South Africa Mexico Ukraine

Programs & Projects:

Watergy Municipal Network for

Energy Efficiency (MUNEE)

China Energy Efficient Windows Initiatives

REEEP Compendium of Best RE & EE Practices

Manual for Financing Municipal EE

In the U.S.:A worsening situation…

Government Policies & Programs Impacting Water

Appliance and Equipment Standards Building Energy Codes Incentives and Funding

- Energy Star Rebate Program- $5.2 Billion Weatherization- Federal Tax Incentives

Voluntary Programs- Energy Star- Save Energy Now

Federal Appliance & Equipment Standards

Example: EPACT 2005

Covers 16 additional commercial and residential products- Commercial refrigerators, freezers and air conditioners- Ceiling fans- Exit signs- Residential clothes washers and coin-op washers

Building Energy Codes ACES & ACELA include national energy

codes with aggressive energy savings targets

National Consumer CampaignsSuper PowersEPA, NYSERDA, AllianceNationwide TV & Radio

Powerful $avingsDOE & Alliance PartnershipAll Media Outlets

The Power is In Your HandsIndustry, DOE, EPA, AllianceAll Media Outlets, Web & Collateral

Energy Hog DOE, Ad Council, Alliance, StatesAll Media Outlets Web, Collateral Materials

Eureka $mart House Energy-Efficiency ChallengeNBC Universal, Industry, DOE, AllianceOn Air, Web–Home Makeover Contest

“Watergy”: A Proven Strategy

Lake Victoria Watergy project Watergy in South African schoolsEE in Caribbean Water Utilities

Term coined to describe strong link between water and energy in municipal water systems

Since 1997: has helped more than 100 cities What does a Watergy Program involve?

• Improving Pumping Systems:• System Automation• Management of Leaks• Metering and Monitoring• Incorporating Energy Efficiency at the Design Stage

A Look at Success: WATERGY WATERGY makes the best use of two valuable, makes the best use of two valuable, limited resources: water & energylimited resources: water & energy

WHY IS THIS IMPORTANT?WHY IS THIS IMPORTANT? Every liter of water that passes through a system has a significant Every liter of water that passes through a system has a significant energy costenergy cost.. Water sector efficiency leaves more funds for crucial and often Water sector efficiency leaves more funds for crucial and often underfundedunderfunded public servicespublic services.. In most developing countries, In most developing countries, 1/3 to1/3 to 1/2 of water produced is 1/2 of water produced is lost.lost.

AND IT’S COST EFFECTIVEAND IT’S COST EFFECTIVE…… Rapid Rapid PaybackPayback:: generally from a few months to 3 yearsgenerally from a few months to 3 years Huge Huge SavingsSavings: : at least 20% in energy costs; much higher possibleat least 20% in energy costs; much higher possible Makes the most of existing Makes the most of existing infrastructureinfrastructure; reduces the need for ; reduces the need for new suppliesnew supplies

RESULTS: RESULTS: 20.8 million kWh and $5.3 million (100 cities)20.8 million kWh and $5.3 million (100 cities)

WHY WATERGY in the U.S.?

WHY IS THIS IMPORTANT?WHY IS THIS IMPORTANT? 3% of U.S. energy consumption goes to deliver potable/waste water services3% of U.S. energy consumption goes to deliver potable/waste water services

= $4 billion in energy costs= $4 billion in energy costs= 45 Million tons of GHGs= 45 Million tons of GHGs

AND IT’S COST AND IT’S COST EFFECTIVE…EFFECTIVE… Rapid Payback:Rapid Payback: generally from a few months to 3 yearsgenerally from a few months to 3 years Huge Savings: Huge Savings: at least 20% in energy costsat least 20% in energy costs EPA estimates 10% reduction in energy use would save $400 million EPA estimates 10% reduction in energy use would save $400 million

annually annually

PROBLEM• 80% of water flowing to homes lost through leaking plumbing fixtures! • Enough to fill to fill two two Olympic-size swimmingOlympic-size swimming pools pools every hourevery hour

CASE STUDY: CASE STUDY: EMFULENI, South AfricaEMFULENI, South Africa

TECHNICAL SOLUTION:TECHNICAL SOLUTION: Pressure ManagementPressure Management • • Automated pressure management valves on each supply Automated pressure management valves on each supply lineline • • Reduced high bulk pressure; further reductions @ nightReduced high bulk pressure; further reductions @ night • • $800,000 construction commissioned Sept 2005$800,000 construction commissioned Sept 2005

FINANCING SOLUTION:FINANCING SOLUTION: Performance ContractingPerformance Contracting • • Water pressure management firm acting as ESCOWater pressure management firm acting as ESCO • • Build-Operate-Train-Transfer to municipality after 5 yearsBuild-Operate-Train-Transfer to municipality after 5 years • • Fees: firm gets 20% of savingsFees: firm gets 20% of savings

EMFULENI, cont.EMFULENI, cont.

RESULTSRESULTS

• • PaybackPayback period: <3 months period: <3 months• • Annual Savings: Annual Savings: MoneyMoney:: US $ 3.8 million US $ 3.8 million WaterWater:: 8 million kiloliters 8 million kiloliters (kL)(kL)

a reduction of a reduction of >30%>30% EnergyEnergy:: >14 million kWh >14 million kWh• • CO2CO2 Reductions: Reductions:

12,000 tonnes/year12,000 tonnes/year

EMFULENI, cont.EMFULENI, cont.

Pre-Conference Workshop:Tapping into Savings in the Water and Energy Efficiency Nexus:

The Watergy Approach for Utilities and Municipalities

SPONSORED BY American Water Works Association (AWWA) Monday, May 10 2010, 8:00-11:00AM Washington, DC Convention Center

Demand/Supply Side Synergy:A Recipe for Success

Thank you!

Contact information:Kateri Callahan

[email protected]