Municipal Network for Energy Efficiency

Krasnogorsk - Water Utility Reform and water efficiency

In Krasnogorsk, located in the Moscow Oblast, the
municipal water utility implemented a number of innovative project - all
completely funded by “Vodokanal” itself. Through automation of remote control
system and introduction of variable speed drives (VSD), electricity consumption
per unit of pumped water was reduced on average by 17%. Despite the fact that
there was a 20% increase in pumped water in 2000 compared to 1997, electricity
use remained basically the same, and actual costs of municipal water supply
actually dropped by 3.4%.

Project description

Like all water utilities, the Krasnogorsk Vodokanal was a municipal
enterprise. Later on it turned into a rented company, and then into a joint
stock company. This change of status brought in a new generation of leaders who
focused on finding ways to analyze and reduce production costs.

Water supply and distribution in Vodokanal includes 13 pumping plants
supplying water from water wells to the municipal network. Each pumping plant
has first tier pumps to take water from water wells to storage tanks and then
second tier pumps to take water from storage tanks to the network. For buildings
higher than 9 floors, there is also a “third tier.”

In this interconnected network, water pumping stations differ in capacity and
vertical rise (head) so each station had a different impact on the network. If
there is little monitoring information or data on each station, it is difficult
to ensure optimal functioning of the entire system.

Vodokanal did have the ability to monitor the amount of water in storage
tanks, but because this system was installed around 1980, it could not provide
enough data. Reliability decreased from year to year and maintenance costs kept
growing. In 1996, Vodokanal management made a decision to replace this remote
control system with a more up-to-date one.

Between 1997 and 2000, a company called KomAS designed a new remote control
system for Vodokanal’s major stations, starting with the largest water wells:
No. 1, 7, 9, and 11. In 1998, phase 2 of the project was accomplished: water
wells No. 2, 3, and 4, and one “third tier” pump were incorporated into the
remote control system. Water wells No. 8 (1997), and No. 10 (2000) were
automated.

The project was financed by Vodokanal, but the utility relied on outside
contractors for technical guidance; equipment and software. The project costs
amounted to 4.6 million rubles (in 2001 prices). Annual benefits equal 1.1
million rubles (in current prices - 0.44 rubles/kWh).

The new system allows for permanent control over all pumping plants by
looking at water pressure, water consumption and water store in the city. At any
minute, the dispatcher can have complete control over all pumping plants and
change their operation parameters by switching on/off relevant equipment. The
software allows for retrospective information control (up to 400 days in the
past) in the form of curves, charts, etc., which allows for equipment operation
analysis and projections for various scenarios.

By 2000, Vodokanal was able to transition to automatic control of pumping
plants. Based on the water level in storage tanks, the updated system regulates
the work of pumps. Frequency converters or variable speed drives have been
incorporated in the rotary pumps control layout (pumping plants of the first and
second tiers). By changing parameters of frequency converters, “daytime” and
“nighttime” pressure in the network is ensured - so the system can adjust for
changes in demand, saving energy when demand is lower. Vodokanal plans to
install VSDs at some other pumping plants of the third tier.

Introduction of remote control automation system provides:

• Complete information on pumping plants operation;
• A possibility of quick adjustment of pumping plants operation for the sake
  of reliable water supply;
• A possibility of emergency and “pre-emergency” situations analysis and
  handling;
• Optimum water pressure in the water supply network;
• Reduction of emergencies in water pipes operation through stabilization of
  water pressure and removing water hammers. Installation of frequency converters
  allowed for a 33% reduction of water pipes breaks in 1999-2000, as compared to
  1998;
• Reduction of electricity consumption through bringing down “nighttime”
  pressure from 5.5 to 3.6 atmospheres and a possibility to increase the pump
  productivity by 2.5%. For example, installation of a frequency converter allowed
  for a 30% reduction of electricity consumption.
• Introduction of remote control automation system and frequency converters
  allowed for electricity consumption reduction. Reduction of specific electricity
  consumption is shown in the chart below.

Problems

Imperfect tariff design system is the major problem. Tariff for water
supplied by Vodokanal is regulated by the local administration. Current
regulation system provides no motivation for suppliers to reduce production
costs and improve energy efficiency. Major drawbacks of the regulation systems
are as follows:

• Lack of formal and transparent decision-making in tariff regulation;
• Tariff design based on the production costs analysis; however, tariffs are
  designed based on the last year costs, with no focus on costs reduction, or
  reimbursement of project costs;
• Misbalanced tariff regulation at various levels, i.e. electricity costs
  increase is not necessarily followed by adequate water tariff increase. This is
  a reason for direct utility losses.

This tariff system gives the water utility an
incentive to increase their costs because production cost increases can mean
increases in tariffs. This approach “kills” any motivation for energy efficiency
projects.