Case Study SA-EM7 HYDROGENERATORS IN THE WESTERN AQUEDUCT Pipes being laid from Midmar Dam through Pietermaritzburg – this will eventually feed onto the Western Aqueduct. The type of pipes that will be used in construction of the Western Aqueduct HYDROGENERATORS IN THE WESTERN AQUEDUCT Unprecedented growth in water demand in the western supply areas of Ethekwini Metropolitan, Durban has brought about the need for a new bulk supply pipeline. The opportunity for electricity generation in this pipeline is an add-on to the project as the primary objective is ensuring an adequate water supply, but significant savings are anticipated once the project has been completed. Background: The Durban area has experienced a significant increase in water demand in its western supply area over the past few years, leading to infrastructure capacity problems with the existing distribution system. The problem has been further aggravated by migrations to the area just west of the greater Durban area, which are also serviced by this system. The Western Aqueduct supplies an extensive area including northern areas such as KwaMashu and Inanda, as well as the western areas of Durban North and Umhlanga as well as the King Shaka Airport. At present the raw water supply for the Western Aqueduct is Inanda Dam, but many of the areas, for example Inanda, the airport and KwaMashu are at higher elevations than Inanda Dam. This means that water is being drained from a lower point to provide water at higher elevations, resulting in increased pumping costs. Inanda Dam The new Western Aqueduct will be supplied from the Midmar Dam which is much higher up in the Umgeni catchment (at an elevation of over 1000m as opposed to between 200 and 400m for the areas supplied), so the new aqueduct provided the option of not only saving energy in pumping costs, but also of generating electricity in the aqueduct. However, it needs to be stressed that the motivation for construction of the new Western Aqueduct has been for security of water supply and that energy savings and energy generation are both secondary issues in the project. For some years now construction of an impoundment, Springrove Dam, on the Umkomaas River, which is in a separate catchment from that of the Umgeni catchment has been considered, the main purpose of this impoundment to provide adequate water for the greater Durban area in the future. Unfortunately Ethekwini Metropolitan is not responsible for the feasibility study of Springrove Dam and since it has been delayed, the Metropolitan, facing the problem of an ageing and increasingly inadequate distribution system, were forced to make a decision in what is effectively an information void. Phase I of the project will rely on water supplied from the Midmar Dam, with Phase II involving augmentation of the supply from the Springrove Dam, although at this stage, construction of the dam is not certain. Should Springrove Dam not prove feasible and construction of the dam not go ahead, security of water supply to the Western Aqueduct may be in jeopardy. However based on present estimates, under the existing conditions the aqueduct will remain viable until 2030, and even using very conservative figures, the payback period has been calculated as 12 years, but is expected to be much less than this. Midmar Dam The first tender process had been completed in 2011 and based on this the project was scheduled for completion by July 2013, however a recent high court ruling has resulted in the tender process being repeated from the beginning again and this will now delay completion of the project until 2016 and will obviously impact on the payback period as well. Electricity generation that the scheme will be capable of producing is very dependent on the security of water supply. Increases in demand on Midmar Dam could lead to a reduction in the water flow in the aqueduct, which would have a negative impact on electricity generation. The current estimates have been based on augmentation of the supply from Springrove Dam, but if construction of this dam does not go ahead, then Ethekwini Metropolitan may have to consider installing smaller generators as there will not be sufficient water to generate the amount of electricity estimated in the original calculations. Description of Process: The new Western Aqueduct, like the present system, will supply the western and northern areas of the greater Durban area, including KwaMashu, Inanda, Durban North, Umhlanga and the King Shaka Airport. The new aqueduct will add up to 400 ML/d to the city’s present consumption of 860 ML/d, the additional water being obtained from Midmar Dam in phase I of the project, while the balance will be obtained through augmentation from the as yet unconstructed Springrove Dam on the Umkomaas River. Potential Interventions Generation of electricity will be carried out by a Public Private Partnership in which Ethekwini Metropolitan will purchase the generators, but the cost of all other equipment and all the costs of operation and maintenance will be borne by the private partner. The private company will be assured of a market for the electricity generated through a 20 or 30 year contract with Ethekwini Metropolitan which will include the selling of electricity to Durban Electricity, a subsidiary of Ethekwini Municipality. The generation of electricity must never take precedence over the supply of water and must not negatively influence the cost of water to the rate payers. Range of potential Savings The feasibility studies were based on a cost of R0.50c/KW, which is the current cost of the electricity purchased by Durban Electricity from Eskom, the national electricity supplier. The loan required to purchase and install two generators of 2.7MW each was amortized over a period of 12 years using an interest rate of 8.5%, and based on this the running costs for the 12 year payback period were calculated at R0.31c/KW, so the system will be financially viable. However, a major concern is still the availability of water since failure to construct the Springrove Dam and upstream water demands exceeding those used in the feasibility study would result in reduced flow through the Western Aqueduct. This in turn would have a negative effect on the generators. Various situations have been modeled in an attempt to assess the impact of different flow rates in the aqueduct on electricity generation and although the pressure increases that occur in pipelines when flow rates drop compensate the effects to some degree, if the flow rate drops below a critical volume, the 2.7 MW generators would be too large to work effectively. Case Study SA-EM7 HYDROGENERATORS IN THE WESTERN AQUEDUCT Ref Case Study SA-EM7 Response information, description and remarks 1 Location: Ethekwini Metropolitan, Durban, South Africa. Urban population and the generators would be positioned at two sites with the system. 2 Sector: Clean water 3 Works Owner or Operator: Ethekwini Metropolitan will own the Western Aqueduct, but the electricity generation project would be done on a Public Private Partnership basis, with Ethekwini constructing the aqueduct and the private partner purchasing the generators and associated equipment and taking responsibility for operation and maintenance of the system. This would be through a 20 to 30 year contract in which the private partner would be assured of a market for the generated electricity. 4 Size: Based on current estimations the Western Aqueduct will eventually convey in the region of 1260 ML/d water. The Western Aqueduct in its present form transports around 860 ML/d. However, the flows at each generator site will be different. At the first site, Ashley Drive the flows will initially be 100 to 230 ML/d, but once water from Springrove Dam comes on line, the flows are expected to be around 330 ML/d. The second site is at Wyebank and the flows here will initially be between 50 and 190 ML/d, but is expected to increase to around 280 ML/d once Springrove Dam comes on line. If the Springrove Dam is not constructed, then according to the worst case scenario, the flow volume in the aqueduct will steadily decrease to zero by 2038. 5 Energy Provider: The project will result in a net production of electrical energy. At present water is pumped in some areas by as high as 150m. Once construction of the new Western Aqueduct is complete and two generators each rated at 2.7 MW have been installed, not only will the pumping costs be greatly reduced, but electricity will also be generated. At present electricity is purchased from Durban Electricity, which in turn purchases electricity from Eskom, the national electricity agency. Electricity costs have increased significantly over the past few years and even greater increases are anticipated over the next 7 to 10 years. In addition intermittent power outages have occurred over the past few years due to demand exceeding supply. 6 Process: The project would involve the installation of 2 hydro generators, so this is a physical process only. 7 Component: The project involves only part of the distribution system. 8 Motivation for the case study: Energy generation was not the primary motivation for the overall project. The main motivator was that the water supply to the Western Aqueduct is diminishing as a result of both an increase in demand and diminishing water supplies available for areas lower in the catchment. A secondary problem was of energy wasted in pumping to higher elevations. Thirdly the current infrastructure is inadequate for the projected water demands. The opportunity for energy generation was realized and has been included into the overall project. Process/Plant changes: Two 2.7 MW hydro generators would be installed into the new Western Aqueduct, together with transformers and the relevant electrical fittings and controls. 9 10 Civil/Physical Changes: Civil changes would be minima and would include the housing and pipes required by the generators. The generators would not have any impact on the water quality or the distribution system. 11 Operational Changes: The project would be carried out through a Public Private Partnership agreement with the Private Partner being responsible for operation and maintenance of the generators. In other words, the Private partner would need to ensure that their employees have the necessary skills, but there would be no additional skills required by Ethekwini Metropolitan. Ethekwini Metropolitan has only recently started to become “generator friendly”, so this project is one a number that are being considered at present that will affect the way that the municipality conducts its business. 12 Risks and Dependencies: The greatest threat to the project is an inadequate water supply. If Springrove Dam is not constructed and or water demand on Midmar Dam exceeds expectations, the resultant decrease in volumes through the aqueduct would impact negatively on electricity generation An additional threat which has more relevance to the aqueduct than to the electricity generation project is that of water management. The traditional and conservative method of water management dictates that water should remain as high in the catchment for as long as possible, whereas in order for this project to be successful and to ensure adequate electricity generation, water will be stored for longer periods at lower, rather than higher, elevation in the catchment. 13 Implementation: The construction of the Western Aqueduct is not at the tender stage yet, but is scheduled for completion by 2016. The electrical generator project will be implemented in terms of a public private partnership signed for a period of between 20 and 30 years. The private partner will purchase all equipment, operate and maintain the system and in terms of the PPP sell all electricity generated to Ethekwini Municipality. 14 Energy Efficiency gains: Based on the feasibility study that includes Springrove Dam in the calculations, two generators each rated at 2.7 MW each will be installed at two separate sites in the Western Aqueduct. The feasibility study indicates that there will be sufficient water to operate these generators until 2030, even if Springrove Dam is not built. Therefore based on the period from 2016 (scheduled completion date of the aqueduct and installation of the generators) to 2030 and two generators each rated at 2.7 MW, the total electrical energy generated will be 662256 MWh, Figures are not available for the amount of energy presently used in pumping water from Inanda Dam to an elevation of some 150m above the dam, but the energy saved in this way will be in addition to that generated in the aqueduct. 15 Cost / Benefit analysis: Based on the current cost of electricity purchased from Eskom of R0.50c/KW and using interest rates of 8.5%, the payback period has been calculated as 12 years. Factoring in these figures (i.e. 12 year amortization at 8.5%), the running cost of electricity generation has been calculated at R0.31c/KW. 16 Project review: This project is still in the feasibility stage. 17 Confidence grade: Although the project has not been completed, or even implemented, the technology is proven and the confidence level that it will be successful is fairly high until at least 2030.