Management Box 3.12 The Watergy Case Study in Fortaleza, Brazil

BOX 3.12

The Watergy Case Study in Fortaleza, Brazil

Challenges

The importance of the project in Fortaleza was highlighted during the energy crisis in Brazil in 2000 and 2001. Of the energy generated in the country, 70 percent comes from hydropower. Droughts and energy shortages are thus inextricably linked. During droughts in 2000 and 2001, all consumers were required to reduce energy consumption by 20 percent.

Since 2001, the Alliance to Save Energy has worked with the local utility in northeast Brazil, Companhia de Água e Esgoto do Ceará (CAGECE), to develop and implement measures to promote the effi cient use of water and energy. This partnership has been aimed at improving the distribution of water and the access to sanitation services, while reducing operating costs and environmental impacts. The partnership has reduced CAGECE’s energy use and served as an example of good practice for other national projects, which is important because the water and sanitation sector accounts for 2.3 percent of the nation’s energy consumption.

Background

Designs of water distribution systems are based on population projections derived from statistical and historical data over a 20- or 30-year planning horizon. Because of this method, many systems are overdesigned, particularly in the size of storage, treatment, and distribution facilities. The overdesigning leads to greater energy consumption than needed to provide for adequate demand, especially in booster stations. Design criteria affect not only pumping stations, but also the size of pipes, the capacity of reservoirs, and the construction of treatment facilities and booster stations. Moreover, water systems need to be able to expand to satisfy growths in demand, but without sacrifi cing the effi cient use of energy.

Objectives

The focus of the partnership between the alliance and CAGECE has been the development of a methodology that would provide CAGECE with the tools and expertise to produce initiatives that result in savings and the rational use of energy and distributed water. As the work progressed, it became clear that the model would be

Source: Barry (2007). useful to other water and sanitation companies exploring ways to increase effi ciency.

Approach

An automated water distribution system allows operators to obtain strategic data in real time. The automation of the system in the Fortaleza Metropolitan Region allows for the correction of defi ciencies, particularly those linked to overdesign. Along with CAGECE’s efforts, alliance actions in 2002 included the following: • Establishment of a baseline of energy consumed and water distributed for CAGECE • Implementation of effi ciency measures that led to a reduction in operational energy consumption • Development of a fi nancing proposal, in association with the government’s Fight against Electricity Waste Program, to undertake energy effi ciency projects with CAGECE operational staff; the technical support provided by the alliance resulted in the development of energy effi ciency projects, cost-benefi t analyses, and the specifi cations of the equipment that could be fi nanced • Arrangement of R$5 million in fi nancing for CAGECE for energy effi ciency projects; the projects included the automation of operations, the rewinding and replacement of motors, the maximization of the effi ciency of pump systems, and an increase in storage capacity to allow pumps to be shut down during peak hours • Creation of an operations procedures manual to serve as a reference for daily operations for crews and CAGECE management

Key results

• 88 gigawatt hours of energy saved over four years • 88,000 households newly connected to water, though water consumption remained constant • $2.5 million saved per year on an initial investment of $1.1 million • Standardization of operating procedures and increased reliability of operations data • Ability to act in real time using system control devices • 220,000 tons of carbon dioxide emissions avoided per year

ing resource allocations thus also aff ects various end users. The cost of treatment is infl uenced by the quality of the raw water and relevant national standards.

Customers should participate in setting standards. This requires a process of consultation and participation to ensure that the economy can aff ord to maintain the quality standards and that service providers can achieve the standards. Often, costly capital investment programs are needed, and private sector participation may be required. All costs should be checked against international good practice. The economic regulator needs to set thresholds for operational