event 19 Feb 2013

Improvement of Energy Efficiency of the Water Authority of Jordan (IEE)

A project implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMU).

Logo iee
The project "Improvement of Energy Efficiency of WAJ" (IEE) tackles the electricity consumption of water pumps, the main consumer of electricity in Jordan's water supply. It was the first project worldwide to be financed within the International Climate Initiative (ICI) of the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMU).

Context

Safe and secure supply of energy, reliable water supply and fighting against climate change are closely interlinked in Jordan: The Water Authority of Jordan (WAJ) is the largest electricity consumer in the country, using about 15% of Jordan's entire electricity production. In addition to high costs, this entails large quantities of greenhouse gas emissions, since Jordan's power supply is based almost entirely on fossil fuels. The hydraulic conditions imply that fresh water needs to be lifted 1,400 meters from the Jordan Valley to reach the consumers in the cities. Under these circumstances, one of the main causes for the high levels of electricity consumption is the huge technical inefficiency in the operation of water pumps. In order to reduce the burden on the national electricity supply and avoid electricity blackouts, saving potentials within WAJ urgently need to be reaped, as this provides free power capacity for households and industry, hence supporting the economic development of the country.

Objective

Therefore, the project "Improvement of Energy Efficiency of WAJ" (IEE) tackles the electricity consumption of water pumps, the main consumer of electricity in Jordan's water supply. It was the first project worldwide to be financed within the International Climate Initiative (ICI) of the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMU). The detailed objectives of the project are: -The energy efficiency of pumping operations of WAJ is improved -Contractual models of energy contracting for pumping stations are developed and implemented -Investments in pumping stations, well-fields and booster stations are undertaken, using private and donor-money.

Approach

The IEE project works closely with the WAJ and uses private sector expertise and funding to achieve sustainable results.In Phase 1 of the project, an energy audit was conducted for the major consumers of electricity in the three governorates of Balqa, Madaba and Zarqa. Based on this, technical measures to reduce the consumption were developed. In addition, institutional concepts and respective contracts were drafted in order to support the sustainable implementation of the measures. During Phase II, the best practice experiences resulting from Phase I are scaled up and implemented on a national scale. The focus is to use private sector operational expertise and private finance as far as possible, e.g. for rehabilitating and operating pumping stations. This would mean that beside direct procurement and improved operation of pumps, the investments in and the operation of pumping stations might be outsourced by WAJ to the private for some years. The IEE Project is the first step towards technical, institutional and economic innovation in energy performance contracting for Jordan's water sector in cooperation with private actors. The project is being implemented in close cooperation with the German-Jordanian Management of Water Resources Programme.

Results achieved so far

1. Impacts on operational

-Reduction of energy consumption in the pilot pumping stations by more than 30% on average. Energy saving for WAJ sum up to approx. EUR 150,000 per year and greenhouse gas emissions are reduced by more than 30%, which results in CO2 reduction of 27'000 t during the lifetime of the pumping equipment. -Improved specifications in procurement processes lead to the purchase of pumps of higher quality, which results in financial benefits over the entire lifetime of pumps for WAJ. At the same time this will open the market for high quality providers. -The staff of WAJ is trained and made aware of energy-efficient operation of pumping stations.

2. Impacts on Sector level

-Completion of concepts and legal documents for the involvement of the private sector regarding the financing and operation of pumping stations (so-called energy performance contracting). The tendering of the first pumping station based on the experiences of the DPP will be finalized in autumn 2012. -Via the development of the energy-contracting model in the water sector a new market was created, in which specialized companies in the field of energy management will cooperate with traditional water companies to support innovation in the water sector.

Impacts for the Jordanian population

-Energy savings will reduce the deficit of WAJ and, as a consequence, lower the tax-financed subsidy of the WAJ. -New pump systems achieve more reliable water supply for the Jordanian population.

Sustainability, effective upscaling and roll-out

-Other donors followed the pilot project with great interest. Meanwhile, the Japan International Cooperation (JICA) as well as BMZ/KfW are investing in the field of energy efficiency. Based on the analyses and results of the IEE programs by WAJ and other donors approx. EUR 10 million were invested. There is a close cooperation with KfW, in order to implement the developed institutional concepts such as the energy- contracting model also in a project funded by the German Federal Ministry for Economic Cooperation and Development. JICA is striving for similar concepts, as the signed Memorandum of Agreement between JICA and GIZ states. -In total up to EUR 35 million shall be invested over the next five years in improving energy efficiency. This will lead to a reduction of CO2 emissions by 40,000 t/yr and annual cost savings of approx. EUR 3.5 million. A total of approximately EUR 15 million could be saved for WAJ if similar saving potential in all pumping stations and well-fields is reaped. -The IEE project budget hence achieved a multiplier effect regarding energy efficiency investments by approx. 22. -Overall the project has generated a triple win: firstly, energy cost are reduced; secondly, the private sector development on a local and international level; and thirdly, reduction of greenhouse gas emissions. Overall, the IEE project has generated a triple win: firstly, energy cost reduction; secondly, private sector development, and thirdly, greenhouse gas reduction. Hence, the project, which has a beacon effect far beyond Jordan, shows that taking care of the environment can also have economic advantages — and is an example for a sustainable solution the German Government supports in all its cooperation activities with Jordan. For further information, please contact {dieter.rothenberger(at)giz.de}

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