On Nov. 27, Danfoss co-hosted a workshop, Water-Energy Future, with the Alliance to Save Energy and the Water Environment Federation (WEF).
The event convened 40 thought leaders from government, manufacturing, consultancies, industry associations and advocacy groups in a collaborative setting to discuss policy, financing and technology barriers, opportunities and solutions in the water and energy space.
To set the stage for the workshop’s discussion, Brian Castelli, executive vice president for programs and development at the Alliance to Save Energy, noted that energy consumption and water loss in most water and wastewater systems could be reduced by at least 25% through cost-effective efficiency actions.
Funding upgrades for outdated infrastructure is a critical barrier for financially-strapped municipalities. Two financing opportunities were explored at the workshop: pension plan investments and performance contracts.
Some pension plans are looking at investments in water and wastewater agencies because they feel that energy efficiency projects in these agencies offer good long-term returns with low-risk investments that are higher than municipal bond interest rates. Performance contracts facilitate investment by having a third-party energy service company (ESCO) guarantee energy savings. Greg Miller, solutions development leader for the Eastern U.S. at Johnson Controls, pointed out that state legislation for performance contracting varies widely, and many states do not specifically identify water and wastewater treatment as an area of opportunity.
Advancing these net zero goals, however, is not a matter of accessible technology but rather motivation and incentive. According to Elena Bailey, director of business development for Ovivo Water, technologies exist today to achieve net-zero energy and meet existing water quality regulations, but there are currently no incentives for operators to achieve net zero—their primary objective is to meet water quality regulations.
John Masters, vice president of water for Danfoss, explained that, in the U.S., the water and wastewater sector is the third largest consumer of energy. At the same time, municipal water and irrigation account for 90% of water usage and water and wastewater facilities use more than 35% of total municipal energy use.
Technologies—like variable frequency drives—do exist that can save a significant amount of energy and mitigate water leakage, Masters confirmed, but only about 4% of industrial motors use variable frequency drives compared to the potential of 18%. VFDs provide variable speed control, which can save up to 20% on electrical costs and 30% on water usage annually.
Following brief presentations, the participants mapped out the issues, and defined solutions and proposals to overcome these obstacles to advance energy and water efficiency, including: standardizing legislations and codes, conducting policy outreach with a common voice among industry stakeholders, improving the permitting process, and defining and articulating both the economic value of efficiency and the value proposition.
The outcome of the workshop will be compiled into a comprehensive report and presented at the WEF Energy Conference in Nashville, Tenn., in May 2013.
Source: Danfoss
