Energy consumption and measures to save power in facilities operated by ACUAMED, by Gabriela Mañueco, Acuamed

Energy consumption and measures to save power in facilities Energy consumption and measures to save power in facilities operated by ACUAMEDoperated by ACUAMED

Energy consumption and Energy consumption and measures to save power in measures to save power in

facilities operated by ACUAMEDfacilities operated by ACUAMED

Mª Gabriela Mañueco PfeifferGerente de Desarrollo InternacionalAcuamed

1. WHO IS ACUAMED

2. ACUAMED AS ENERGY CONSUMER

3. MANAGING ENERGY BUYING

4. VALUATING GREEN ENERGY

5. GREEN ENERGY FOR INFRAESTRUCTURES FINANCING

INDEXINDEX

• 100 % State Owned Company.• Acuamed depends on the Agriculture, Food, and Environmental Ministry • Objective Design, construction, operation, and acquisition of all kind of hydraulic works

entrusted by the Council of Ministers.

The management of contracts for studies, projects, construction, acquisition and operation of the works, as well as those preparatory, complementary, or derived activities from the previous works.

1. WHO IS ACUAMED

1. WHO IS ACUAMED

The works of Acuamed respond to the problems of the region ensuring a sustainable development by complying with the European and Spanish social, economic, and

environmental legislation

WORKS OF ACUAMED.WORKS OF ACUAMED.

1. WHO IS ACUAMED

Financial Resources

1. WHO IS ACUAMED

1. WHO IS ACUAMED

Desalination 13

Reuse 11 Improvement of infraestructure

and management 18

Modernization of irrigation systems 2

Environmental improvements and protection

against flooding 13

1. WHO IS ACUAMED

Desalination 1.640

Reuse 201

Improvement of infraestructure

and management 1362

Modernization of irrigation systems

39Others 96

Environmental improvements and protection

against flooding 382

Data in Million €

1. WHO IS ACUAMED

Number of works: 13

Total Investment: 1.640 million €

Generated Resources: 404 hm3 per year

Use: Drinking water and agriculture

These works are aimed at alleviating water deficiencies in the areas of the Mediterranean basin through the construction of 13 desalination plants. Nine of them are currently finished.

GENERATION OF NEW RESOURCES. DESALINATION

Number of works: 18

Investment : 1.362 million €

It is about improving urban distribution networks some of them associated to the optimal use of desalination resources . The most important works are:

• New water transfer Júcar-Vinalopó (Alicante – Valencia) • Pipeline connectionTalave-Cenajo (Murcia)• Pipline connection Negratín – Almanzora (Granada - Almería)• Pipline connection Cuevas de Almanzora reservoir-Poniente Almeriense (Almería)

LARGE INFRAESTRUCTURE MANAGEMENT

Number of works: 11

Investment: 201 million €

Provided resoures: 107 hm3 per year

Users: Agriculture, sport facilities and environmental improvements.

These works help to solve other problems such as overexploitation of aquifers through tertiary treatment in 10 wastewater treatment plants (WWTP) and improving pipelines and pumping stations in 13 WWTP.

GENERATION OF NEW RESOURCES. REUSE

Number of works: 13

Total investment: 382 million €

The most important works are :- Enviromental recovery of the Segura River (Murcia)- Channeling and flood protection in Cartagena (Murcia)

- Flood prevention in the Serpis River (Valencia)- Environmetal recovery of part of the Ebro River (Tarragona)- Conservation and improvement of delta of the Ebro River (Tarragona)- Decontamination of the Flix reservoir (Tarragona)

- Channeling of Rambla Gallinera (Valencia)

ENVIRONMETAL IMPROVEMENTS AND FLOOD PREVENTION

Number of works: 2

Investment: 39 million €

Irrigation modertization aims at optimizing water management, increase guarantee of resoures, and minimize consumption. The works consist in modernizacion of water infraestructure for irrigation in the Vega Alta (Murcia) and the main channel of Campo del Turia (Valencia)

IRRIGATION MODERNIZATIONIRRIGATION MODERNIZATION

1. WHO IS ACUAMED

2. ACUAMED AS ENERGY CONSUMER

3. MANAGING ENERGY BUYING

4. VALUATING GREEN ENERGY

5. GREEN ENERGY FOR INFRAESTRUCTURES FINANCING

INDEXINDEX

Part of the infrastructure built by Acuamed are nowadays being operated or with energy consumption.

TYPE ENTRUSTEDOPERATED OR WITH

ENERGY CONSUMPTION

Desalination/Potabilisation 18 11

Reuse 16 7

Large Infrastructure management 9 8

Modernization of irrigation 24 4

Environmental improvement and flood prevention

14

TOTAL 81 30

The main energy consumption is due to:

The actual power contracted by Acuamed is : 145 MW.

This is the evolution of power contracted and a middle term estimation, we will reach 300 MW by 2020:

2011 2012 2013 ... 2020110 MW 145 MW 195 MW 305 MW

The energy consumption during 2012 reached: 132 GWh and it should reach 1.750 GWh by 2020.

The energy consumption of hydraulic infrastructure is quite variable as it relies on the availability or not of water resources and associated water demand this graphic is also an estimation for the next years.

2011 2012 2013 ... 2020100 GWh 132 GWh 354 GWh 1.700 GWh

Acuamed has at the moment 131 supply points.

Those points may be classified according to prices depending on: power, voltage and timetable :

Type of Tariff

Nº supply points Power %

Consumption Characteristics

Tariff 6(6.3)(6.1)

186

12

144 MW96 MW48 MW

99%81%18%

6 time periodsin 132 kVin 20 kV

Tariff 3.0.1 40 0,5 MW 1% 3 time periods in 20 kV

Low Volt. 94 0,5 MW 0% Different tariffs

TOTAL 131 145 MW 100%

Those 131 are distributed geografically:

Province Nº of supply points Power %

ConsumptionAlmería 43 24 MW 17%Murcia 42 46 MW 48%

Valencia 17 48 MW 24%Madrid 15 0 MW 0%Alicante 9 24 MW 10%Albacete 3 2 MW 1%Málaga 1 0 MW 0%

Tarragona 1 0 MW 0%

TOTAL 131 145 MW 100%

1. WHO IS ACUAMED

2. ACUAMED AS ENERGY CONSUMER

3. MANAGING ENERGY BUYING

4. VALUATING GREEN ENERGY

5. GREEN ENERGY FOR INFRAESTRUCTURES FINANCING

INDEXINDEX

As State Society Acuamed is subject to the Spanish Law for Contracts of the Public Sector, in particular to the “Texto Refundido (TRLCSP)” approved by Real Legislative Decree 3/2011, of November 14th 2011. The TRLCSP tries to guarantee the free concurrence and the transparency of the bidding procedures.The electrical energy quotes in markets therefore its price has a great variability. The TRLCSP does not include procedures allowing to optimize the purchase of energy.The procedures used for the purchase of energy may be:•Auction•Open procedure•Agreement•Negotiated with publicity

Acuamed uses the negotiated bidding with publicity which is only allowed for exceptional reasons.

In this case the exceptional nature of the contract to bid comes from two aspects: •A part of the price of the energy is regulated by the Ministry of Industry, Energy and Tourism, and it is impossible to know its modifications in advance.•The consumption of the energy in a certain period of time is not known beforehand, since it is subject to circumstances out of control of the State Society.

Characteristics of the bidding:

Acuamed requires to bidding companies to provide a minimum of 750GWh in a yearThe term of the contract is 12 months.The modality of the asked for supply is of fixed price.

A technical offer with the following content is requested:•Procedures to solve incidences of invoicing•Flexibility of the demand and management of the consumption•Description model for the information for flexibility of demand•Proposal for consumption management•Improvements and additional services

The main landmarks of the hiring procedure are:

1.Opening of the administrative documents2.Invitation to present the technical and economic documents to the admitted companies 3.Opening of the technical documents (Act witnessed by public notary) 4.Technical Valuation5.Opening of economic proposals (Act witnessed by public notary)6.Economic and total Score7.Beginning of the process of negotiation with the three companies with the higher scores8.Proposal of awarding to the Society’s Office

The valuation of offers is made with the following criteria:

Technical offer: 20% 14%: Proposals of flexibility of demand 3%: Additional proposals of improvements and services 2%: Model, content and frequency of information 1%: Systematic resolution of invoicing incidences

Economic Offer: 80%

1. WHO IS ACUAMED

2. ACUAMED AS ENERGY CONSUMER

3. MANAGING ENERGY BUYING

4. VALUATING GREEN ENERGY

5. GREEN ENERGY FOR INFRAESTRUCTURES FINANCING

INDEXINDEX

Acuamed gives great importance to energy supply coming from co-generation and renewable power plants of high efficiency. The Spanish Regulation is based on: Order ITC 1522/2007, related to high efficiency, and Order ITC 2914/2011,a modification of the previous which incorporates article 15 of the 2009/28/CE.

How is green energy considered in the bidding of energy supply of Acuamed? The provision of green energy is not a requirement of forced fulfillment.It is considered in two ways:• A specific chapter in the technical offer: where each distribution company can offer a certain % of green energy, obtaining an additional score of up to 5 points.• Each distribution company decides its influence on the economic offer.

The Regulating Clauses establish:

•The amount of green energy supplied must be clearly specified in the economic offer.•The distribution companies must certify the percentage of energy coming from renewable sources or co-generation of high efficiency that are going to be provided to Acuamed throughout the contract. •At the end of every natural year the awardee must certifiy the amount of green energy supplied according to the regulation established by the National Commission of Energy. If the awardee fails to fulfill the commitment, and certifies less than 80% of its commitment, a penalty equivalent to 0.3% will be applied to him on the invoiced total price.

Regulating Technical Clauses award:

5 points awarded to the 100% of the green energy2 points will be awarded in between 75% and 100%.1 point between 50% and 75%.

The actual result of this bidding formula is that the 100% of the energy supplied to Acuamed comes from renewable energies since January 2010,

The incidence of the 5 additional points is higher than might be thought at first sight:

The differences in the scores of the technical offer are usually around 2 points.The differences in the scores of the economic offers are usually between 12 and 20 points.

This means that the 5 points obtained from the provision of green energies represent 25 or 35% of the difference of scores.

1. WHO IS ACUAMED

2. ACUAMED AS ENERGY CONSUMER

3. MANAGING ENERGY BUYING

4. VALUATING GREEN ENERGY

5. GREEN ENERGY FOR INFRAESTRUCTURES FINANCING

INDEXINDEX

There is an increasing need to look for external financing for the construction of great hydraulic infrastructure.

On the other hand, the environmental aspects in the infrastructure financing are more relevant.

On June 4th 2003, 10 bank leaders, from of seven countries, adopted the “Equator Principles”, that represent a series of directives for the management of social and environmental aspects assumed by those banks for the financing of great international projects.

The Equator Principles are based on policies and directives of the World Bank. Nowadays as much as 79 institutions have joined that agreement.

The banks require promoters that ask for financing to fulfill those principles.

The Equator Principles are:

Principle 1: Review and CategorisationPrinciple 2: Environmental and Social AssessmentPrinciple 3: Applicable Environmental and Social StandardsPrinciple 4: Environmental and Social Management System and Equator Principles Action PlanPrinciple 5: Stakeholder EngagementPrinciple 6: Grievance MechanismPrinciple 7: Independent ReviewPrinciple 8: CovenantsPrinciple 9: Independent Monitoring and ReportingPrinciple 10: Reporting and Transparency

The use and generation of Green or Alternative Energy may be among these principles

5.- GREEN ENERGY FOR INFRAESTRUCTURES FINANCING5.- GREEN ENERGY FOR INFRAESTRUCTURES FINANCING

In the case of Acuamed, the state society has subscribed a credit of 500 million euros with the European Investment Bank for the construction of hydraulic infrastructure. The policy of the EIB for the financing of projects incorporates, as one of the key points, the power management of the projects, valuing significantly the use of renewable energies, as well as power efficiency.

In this sense Acuamed has implemented an Action Plan intended to:Give advantage to renewable energies: photovoltaic plants and hydraulic energy.Power audits in the facilities of greater consumption.Power improvements by means equipment modernization.Use of renewable energies.

5.- GREEN ENERGY FOR INFRAESTRUCTURES FINANCING5.- GREEN ENERGY FOR INFRAESTRUCTURES FINANCING

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION

Energy consumption and Energy consumption and measures to save power in measures to save power in

facilities operated by ACUAMEDfacilities operated by ACUAMED

Mª Gabriela Mañueco PfeifferGerente de Desarrollo InternacionalAcuamed