Energy costs have become an increasing contributor to pumping systems Total Cost of Ownership (TCO). In fact, energy cost represents 40% of the TCO of a typical pump. It is possible to reduce the electrical consumption by at least 30% utilizing Variable Speed Drives while decreasing maintenance costs associated with the mechanical driven system. This paper explains how to reduce TCO with a limited investment focused on three key areas: energy efficiency management, asset management, and energy cost management.
Typical pumping systems are found in applications such as Building/HVAC, Water/Wastewater, Oil & Gas Extraction/Transportation and Irrigation – where energy makes up a significant portion of total pump cost. Electrical energy costs can represent 40% of the total cost of ownership (TCO) of pumping systems . Despite this fact, many organizations fail to introduce the proper steps to leverage cost reduction through efficiency improvements. To solve this dilemma, the following major barriers need to be recognized and addressed:
- Energy efficiency has traditionally not been a primary focus used to assess system performance. In most organizations, energy utilization has only just been introduced as a corporate metric.
- A lack of awareness in overall pump system energy efficiency opportunities is prevalent and, as a result, potential savings and other benefits have been missed.
- Lack of funding has resulted in operations personnel struggling to present attractive large or even small investments to their senior management.
This paper illustrates how deployment of an energy management plan, with limited investment, can provide reductions in pumping systems TCO while maintaining sustainability objectives. Any sound energy plan should take into account the following three steps:
- Energy efficiency management
- Asset management
- Energy cost management
For the purposes of this paper, the “Pumping System” is defined as encompassing all related components starting from the point of the electrical utility connection down to the point of end use. This paper will illustrate how energy management and system optimization can result in a 20% reduction in TCO and a return of investment (ROI) of less than 24 months.