wimes lcc model 03 pd pumps issue 1 guidance notes

7/30/2019 WIMES LCC Model 03 PD Pumps Issue 1 Guidance Notes

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WIMES LCC MODEL 03POSITIVE DISPLACEMENT PUMP UNITS

GUIDANCE NOTES

ISSUE 1

FEBRUARY 2011

Copyright 2011, ESR Technology. All rights reserved. No part of this document may be reproduced inany form electronic or mechanical, including photocopying, recording or any other information storage and

retrieval system without permission in writing from the Pump Centre.

The Pump Centre is a Centre of Excellence within ESR Technology, oneof the UKs leading engineering, safety and risk consultancies. ESRTechnology provides independent technical expertise to help itscustomers ensure asset integrity, improve machine reliability, managesafety and risk and transfer best practice.


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WIMES LCC MODEL 03POSITIVE DISPLACEMENT PUMP UNITS

GUIDANCE NOTES

Prepared by:

R Marlow Pump Centre

With technical support and co-operation from the WIMES LCC Working Groupconsisting of:

F Davis/T Smith

Anglian Water

T White Bristol WaterP Davison NI WaterR Aubry Dwr CymruM Overy Northumbrian WaterB Spence Scottish WaterK Gaunt Severn Trent WaterM Kinsey South West WaterM Keen Southern WaterS Whatley Thames WaterM Rush United UtilitiesD Hewerdine Veolia WaterJ Wright Wessex WaterM Ward Yorkshire Water

Please Note

This document will be reviewed periodically to take account of feedback fromWater Companies and/or Suppliers. If changes to the Specification are necessary, itwill be re-issued.


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WIMES LCC MODEL 03 POSITIVE DISPLACEMENT PUMP UNITS Page 1

ISSUE 1 FEBRUARY 2011

CONTENTS

LCC ASSESSMENT 2Background 2Guidance 2

General Guidance 2Detailed Guidance 3

WHOLE LIFE CARBON COSTS 8


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Detailed Guidance

For ease of reference, the headings used in this Section are identical to those used in themodel.

1.0 PERIOD OF ANALYSIS AND PUMP UNIT OPERATION

1.1 Period of Analysis (POA)

The Purchaser should input the required period of analysis (POA) in years (up to amaximum of 40 years) in cell E16.

1.2 Pump Unit Operation

The Purchaser should input the required pump duty in terms of a flow (l/s),differential pressure (bar) and utilisation (%) in cells E21, E22 and E30 respectively. If the

pump duty cannot be adequately described by a single operating point, there is the facilityto input three additional operating points. The total utilisation should not exceed 100 %.

The Supplier should input the pump and motor efficiencies (%) at each of the operatingpoints specified by the Purchaser in cells E24-H24 and E25-H25 respectively. ThePurchaser also has the option of inputting the inverter efficiency (if relevant) and details ofany other losses in the pump string (e.g. in the supply cable) at each of the operatingpoints in cells E26-H26 and E27-H27 respectively.

Based on the flow, pressure, efficiency and utilisation figures input/calculated, the modelcalculates the following parameters at each operating point:

1. The overall efficiency (%) (E28-H28);2. The overall power input (kW) (E29-H29); and3. The pump unit running time (in hours) over the POA (E31-H31).

If more than one operating point has been input, the model calculates the pump poweroutput, overall efficiency and overall power input as weighted averages (E32, E33 andE34).

2.0 PUMP UNIT DETAILS

The Supplier should should input the pump unit designation in cell E38.

3.0 LCC ASSESSMENT

3.1 Discount Rate for Net Present Cost (NPC) Calculations

The Purchaser may, if required, input a discount rate (%) in cell E44 to enable the modelto present the results in the form of a discounted cashflow.


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3.2 Initial Procurement Costs

The Supplier should input the pump unit list price, discounted if appropriate, in cell E48.

3.3 Energy Costs

3.3.1 Energy Price and Differential Energy Price Inflation Rate

The Purchaser should input the current energy price (p/kWhr) in cell E54 and may, ifrequired, input the differential energy price inflation rate (% per annum) in cell E55. Forexample, if the general inflation rate is 2.0 % per annum and the energy price is expectedto increase at 5.0 % per annum over the POA, a differential energy price inflation rate of3.0 % per annum should be input in cell E55.

3.3.2 Energy Costs (Assuming no Decrease in Pump Unit Efficiency)

Based on the overall power input and running hours figures previously calculated, themodel calculates the total energy consumption of the pump unit over the POA (E59).Using this figure, the energy price and, if appropriate, the differential energy price inflationrate, the model then calculates the energy costs of the pump unit over the POA (E60).

These figures assume that the original efficiency of the pump unit is maintained over thePOA.

3.3.3 Additional Energy Costs Due to a Decrease in Pump Efficiency

The Purchaser may, if required, input a figure for the decrease in pump efficiency per

1000 hrs of operation in cell E64. This figure should be based on the Purchasers previousoperational experience of the performance of similar pumps, if available. The reason thatthe Purchaser inputs this figure as opposed to the Supplier, is to ensure that a levelplaying field is maintained when reviewing different Suppliers submissions.

The Supplier may challenge this figure, if he considers that the pump being offerred willdeliver a significantly better performance than suggested by the figure input by thePurchaser. The Supplier should provide documentary evidence to support this challenge.

Based on the initial average overall efficiency figure in cell E33 and the loss in efficiencyper 1000 hrs of operation figure in cell E64, the model calculates the following parameters;

1. The efficiency decrease of the pump unit over the POA (E66);2. The final efficiency of the pump unit at the end of the POA (E67);3. The total energy consumption of the pump unit over the POA (E68);4. The total energy costs of the pump unit over the POA (E69); and5. The additional energy costs of the pump unit over the POA due to loss in

efficiency (E70).


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3.3.4 Effect of Efficiency Restoring Overhauls

The Purchaser may, if required, overhaul the pump unit at regular intervals (running hours)to restore its efficiency back to its original value. If this is the case, the Purchaser shouldinput the overhaul interval (in running hrs) in cell E74.

Based on this figure, the model calculates the following parameters:

1. The number of overhauls performed over the POA (F74);2. The total energy consumption of the pump unit over the POA (E75);3. The total energy costs of the pump unit over the POA (E76); and4. The energy costs savings resulting from the overhauls (E77).

The lower the overhaul interval the greater the energy cost savings. This beneficial effectis obviously offset by the costs associated with pump unit overhaul and the Purchasershould optimise his maintenance strategy to achieve the lowest overall LCC.

3.3.5 Energy Costs Summary

The energy consumption and energy costs figures that will be used in the LCCassessment are detailed in cells E81 and E84 respectively. These figures obviouslydepend on whether decrease in pump unit efficiency and/or the effect of efficiencyrestoring overhauls have been taken into account during the assessment.

The model also calculates the specific energy consumption (kWhr/Ml/bar) of the pump unitin cell E82 based on the following:

1. The total energy consumption of the pump unit over the POA; and2. The differential pressure and flow rate at the rated operating point.

3.4 Maintenance Costs

3.4.1 Labour Price and Differential Labour Price Inflation Rate

The Purchaser should input the current price of labour (/manhr) in cell E105 and may, ifrequired, input the differential labour price inflation rate (% per annum) in cell E106. Forexample, if the general inflation rate is 2.0 % per annum and the price of labour isexpected to increase at 5.0 % per annum over the POA, a differential labour price inflationrate of 3.0 % per annum should be input into cell E106.

3.4.2 and 3.4.3 Planned Maintenance

The Purchaser should input the following information:

1. The maintenance activities to be performed on the pump unit (D113-D120 andD127-D134); and

2. For each of the activities listed, the interval (in running hours or calendar months, asappropriate) between successive bouts of maintenance (E113-E120 and E127-E134).


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The reason that the Purchaser inputs this information as opposed to the Supplier, is toensure that a level playing field is maintained when reviewing different Supplierssubmissions.

The Purchasers maintenance strategy will obviously vary based on a number of factors

including:

1. The value of the pump unit;2. The cost of maintaining the pump unit;3. The likelihood of pump unit failure;4. The consequences of pump unit failure; and5. Previous relevant operational experience.

Small, relatively inexpensive pump units and/or pump units which are difficult to gainaccess to for maintenance may not be subject to any planned maintenance activities(i.e. they will be subject to reactive/breakdown maintenance), whereas large, expensive

pump units and/or those that have critical duties, will typically be subject to a range ofplanned preventative and predictive maintenance activities.

For each of the activities listed by the Purchaser, the Supplier should input the followinginformation:

1. The time taken to perform the activity (F113-F120 and F127-F134);2. The number of staff required to perform the activity (G113-G120 and G127-G134);

and3. The costs of any spare parts associated with performing the activity (H113-H120 and

H127-H134).

The model calculates a cost to perform each activity and based on the maintenanceinterval, a total maintenance cost for this particular activity over the POA. The model thensums all of the costs for the individual activities and calculates a total plannedmaintenance cost (J121 + J135).

The Supplier may challenge the Purchasers proposed maintenance strategy, if heconsiders that a different approach (in terms of the activities listed and the associatedmaintenance intervals) will result in a lower planned maintenance cost, provided that thisapproach will not have an adverse effect on pump unit availability, asset life or LCC. TheSupplier should provide documentary evidence to support this challenge.


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3.4.4 Unplanned Maintenance

The Purchaser should input the following information:

1. The maintenance activities to be performed on the pump unit (D141-D148);

2. For each of the activities listed, the interval (in running hours or calendar months, asappropriate) between successive bouts of maintenance (E141-E148 or F141-F148) .3. The time taken to perform the activity (G141-G148);4. The number of staff required to perform the activity (H141-H148); and5. The costs of any spare parts typically associated with performing the particular

maintenance activity (I141-I148).

The reason that the Purchaser inputs this information as opposed to the Supplier, is toensure that a level playing field is maintained when reviewing different Supplierssubmissions.

The model calculates a cost to perform each activity and, based on the maintenanceinterval, a total maintenance cost for this particular activity over the POA. The model thensums all of the costs for the individual activities and calculates a total unplannedmaintenance cost in cell K149.

The Supplier may challenge the Purchasers proposed maintenance strategy, if heconsiders that the pump unit being offered will not be subject to the unplannedmaintenance activities listed e.g. the pump unit is of an innovative design that does notrender it susceptible to blockage at the intervals defined by the Purchaser. The Suppliershould provide documentary evidence to support this challenge.

3.4.5 Maintenance Costs Summary

The model sums the planned and unplanned maintenance costs and outputs a totalmaintenance costs figure in cell E152.

3.5 Enhanced Capital Allowance

The Supplier should indicate whether or not the pump unit will qualify for an enhancedcapital allowance in cell E156.

The Enhanced Capital Allowance (ECA) scheme enables the Water Company to claim100% first-year capital allowance on the purchase price of the motor (and inverter). Forpump units, this will depend on whether or not the motor efficiency is classed as IE3 orgreater, in accordance with BS EN 60034-30 (pump units with integral motorse.g. submersible pumps do not qualify for ECA).

LCC SUMMARY

The results of the LCC assessment are finally summarised, in terms of a current anddiscounted cost, in cells E195 and E197 respectively.

The results of the LCC assessment are also presented in the form of a pie chart (currentcosts only) and a graph of cost vs. years of operation (current and discounted costs).


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WHOLE LIFE CARBON COSTS

For ease of reference, the headings used in this Section are identical to those used in themodel.

1.0 OPERATIONAL CARBON EMISSIONS

The Purchaser should input the current DEFRA greenhouse gas (GHG) conversion factor(kgCO2e/kWhr) in cell E283. This conversion factor is an annually updated, five yearrolling average, which may be obtained from the DEFRA website. It will vary dependingon the source of the electricity. The model calculates the operational carbon emissions(tCO2e) of the pump unit over the POA in cell E286 by multiplying the GHG conversionfactor by the total energy consumption of the pump unit over the POA (E285).

Depending on whether or not the Water Company is a member of the EU CarbonEmissions Trading Scheme (ETS), the Purchaser should input traded or non-traded

carbon values into Table 1, for each of the years comprising the POA. The relevantcarbon value data may be obtained from the Department of Energy and Climate Change(DECC) website. The model calculates the operational carbon costs of the pump unit overthe POA in cell E288.

For PR09, to avoid double counting, OFWAT has requested that the operational carboncosts should be adjusted by subtracting the climate change levy (CCL) costs from thecarbon costs calculated using the traded/non-traded carbon values. The Purchaser shouldtherefore input the CCL rate (p/kWhr) in cell E289; based on this figure and the totalenergy consumption of the pump unit over the period of analysis, the model calculates theCCL costs of the pump unit over the period of analysis in cell E290. The model then

calculates the adjusted operational carbon costs in cell E291, by subtracting the CCLcosts from the carbon costs calculated using the traded/non-traded carbon values.

2.0 EMBEDDED CARBON EMISSIONS

The Supplier should enter a figure for the embedded carbon (tCO2e) associated with themanufacture and delivery of the pump unit in cell E308. The model then calculates thecost of this embedded carbon in cell E309 by multiplying this figure by thetraded/non-traded carbon value for year 1 of the POA.

SUMMARY

The results of the whole life carbon costs assessment are finally summarised, in terms of acurrent and discounted cost, in cells E317 and E319 respectively.

wimes lcc model 03 pd pumps issue 1 guidance notes

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