SmartOperations is the Future

Last week at CWEA Annual Conference, I had some very interesting conversations with leaders of our industry about the future. Here is a gist of my perceptions that I shared liberally with everyone.

The Future of the Water Industry, at least for the next two decades, will be all about Smart Operations. Over the last hundred years, Engineering was leading the show. This was because we needed to invent processes and technologies that can clean water from rivers, lakes, and oceans to make them palatable and safe for human consumption. Once that water has been through the 'human system', we also worked on technologies that will clean the water to a sufficient level safe for reintroduction into nature. We are there; we have figured out the basic engineering technologies that can effectively produce clean water. Yes, there are still some frontiers to conquer, such as trace organics and pharmaceuticals, but engineering on those frontiers will unlikely yield a 'breakthrough' and will most likely have diminishing returns. I am not advocating that engineers and scientists should not spend time on those peripheral problems, it is just that the industry will shift towards effective implementation of what is already there. Operations will take primacy over Engineering.

This is a major shift for the industry, you can compare it to the way water bodies turnover during change of seasons. All major institutions in the water world is currently dominated by engineers, be it the EPA, the major trade associations like AWWA,WEF, WateReuse, the regulatory agencies, the agency leadership, etc. Engineering consulting firms also dominate the direction that the industry takes. But this is changing and this transformation will get faster by the day. Engineering consulting firms are already facing the choice of just becoming Planning firms or to become Design-Build focused companies. Planning firms will develop program level plans and when needed work on 30% design of facilities. Treatment plants of the future will be more equipment driven and packaged than custom designed (as they are now). Design-Build firms will be led by construction managers and engineers will assist them to take those 30% designs to fruition. For engineers, the choice is to quickly adapt to this new model or perish.

Smart Operations will mean redesigning the water and wastewater agencies as businesses and focus on continuous optimization. Most water agencies currently react to water demand and supply stresses and wastewater agencies believe that they exist to maintain regulatory compliance only. Water agencies of the future will get ahead of the supply-demand race and work to control both the issues. On the supply side, focus will be on reliability investments, water grids will become smart grids just like the electricity grid with infusion of software and sensors, and the demand side will see an increased management effort. Wastewater agencies will reinvent themselves to be factories with three designer products to sell - clean water, nutrient rich fertilizer, and electricity. The technologies to get there is already available, the only limiting ingredient is the foresight and confidence of the operations managers.

Water SmartOperations
(C) PROTEUS Consulting

To make this happen, PROTEUS Consulting is working on building bridges between the Water sector and other sectors - Energy, Information Technology, Economics/Finance, and Communications. Before the end of this year you will see Energy and Water Sectors forging new paths, where water sector will act as flexible loads to help balance the grid and in turn get to access a new revenue stream independent of water sales. Software will play a very important role in SmartOperations with business intelligence, knowledge management, gamification, text analytics, data mining, learning networks, etc. taking the center stage. PROTEUS expects to usher the growth of software solutions for the water industry and we will also champion the use of open source code to enable the maximum benefit to these publicly owned and operated water and wastewater agencies. Economics within the water agencies and financing of infrastructure projects will change. Water trading networks, real-time value chain operations, infusion of private equity, are a few initiatives PROTEUS is working on. As for communications, gone are the days when the water industry was churning out calendars with 'save water' sketches, you will find art, literature, theater, cinema, games, and mobile apps flowing all around you. Stay tuned!

Water+Energy Presentation at CWEA Annual Conference 2013, Palm Springs

It was a very good turnout at the CWEA Annual Conference this morning. We talked about the next frontier in Water and Energy Nexus. The reception was very positive. Some people who could not attend my talk caught hold of me in the corridor/hall and wanted to connect and learn about with Proteus' Water+Energy work. I could not have asked for more!

The ideas we present here are new and refreshing. The concept of flexible load on the grid is not in the mainstream, but it will soon become a reality. Discussions are ongoing at the CEC level on how to prepare for the future grid when renewables will change the peak load profile. Water industry stands ready to meet the challenge, to act as a flexible load!

The plan forward is to get pilots going for flexible loads using treatment plants and pipeline networks in all three IOU territories by spring next year. Once the concept is proven, the work will commence on pricing and program development. As the water industry amounts to 20 - 45% of California's total energy use, that is a lot of load that can act as a flexible load on the grid. Welcome to the future!

Innovation Mentoring by Proteus

In the recent WBT2012, 110 companies gave six minute presentations showcasing emerging technologies representing a variety of industry sectors ranging cleantech to medical device, to software and advanced materials. These companies include university spin-outs, startups, market ready university and federal lab innovations. Most of these companies had been funded by the founders and their family, angel funds, venture capital, state and federal grants; and through the exposure at WBT, they were seeking angel capital, venture capital (including seed and early stage), exclusive and non-exclusive licensing partners, co-sponsored research partners, corporate strategic partners.

Five of those teams were mentored by Proteus Consulting. They were:

• eQube™ & EmirSM by Groundmetrics
• Water Conservation Technology for residential, commercial and Institutional Buildings by Eco Products Group, Inc
• "Super Whale" Caudal Cycle Propellers-Pumps and Fans by Admiral Fluidics
• GestyMe by Shailah Interactive
• iWatchLife

We also sat through dress rehearsals for six other presenters. Through the mentoring process we helped these companies to hone their presentations to make the maximum impact and gain recognition. Every company has their challenges, be it funding, communication, presentation skills or others. We helped them to stay on message and connect with the audience. 

It was great to see that mentees present during the conference with confidence. And we are VERY HAPPY to announce that one of the above mentioned teams, Groundmetrics, won the Runners Up award!

55,000+ water agencies in the US, and....??

United States is approximately 3,718,691 square miles in size, and has a population of 314,661,000 (mid 2012 estimate). To manage this, we have 55,000+ water agencies. I am not including wastewater agencies here. In several places, we have combined water and wastewater agencies, but in many places it is not so.

In San Diego county,  we have 4,525.52 square miles and a population of 3,095,313 (2010 census). To manage this, we have 24 water agencies and the San Diego Water Authority to oversee the region.

(In comparison, there are only a few dozen power utilities in the US, and only one that operates in San Diego.)

Let's do the simple math:
A typical US water agency manages about 67.6 square miles, and 5,721 people.
A typical water agency in San Diego manages about 188.5 square miles, and 128,971 people.

Yes, the simple math does not really do justice to the numbers. There are many agencies covering large swaths of land and support very small population, and vice-versa. But the underlying question is do these water agencies currently operate at their best efficiency point and giving the best value to their customers?
We are talking about efficient resource distribution, limited water loss, optimization of labor, connect with customers so that they understand and appreciate the impact of water usage patterns. And we all know that the answer is No. All these agencies get an A or B for effort, but about a D or lower for results.

So, what are the Solutions?

Everyone will jump up and down and say Innovation! (It's an over used buzz word these days.) Yes, innovation is the answer, but it comes in different forms. Just finding new treatment technologies is not enough. Unfortunately, water agencies currently define innovation = better water treatment methods. Innovation has to touch every aspect of the Water Industry, inside out. As a first step, there are four sectors where these agencies need to focus on:

Energy - Apart from working on energy efficiency projects (i.e. change the light bulbs, buy efficiency motors,etc.), the agencies need to focus on operating the systems with dynamic real-time optimization. More details on the concept can be found here. The result of this will not only be energy savings but also additional revenue that can then be applied back towards system improvements.

Technology - Adopt a SMART Operations and Maintenance concept. This will include model based control, real-time forecasting, advanced sensing and monitoring, dynamic data visualization, analysis and decisions. The water agencies have a Big Data problem, all we need is to adopt the technology tools and solutions from other disciplines and adapt them to our operations.

Economics - Change the pricing models to match supply and demand and reflect the 'real' value of water based on it's source and use. Move from the era of water development to the era of water allocation, test out the strategies and implement them. Move away from capital financing needs (historically met by Federal and State grants) to financial instruments from private sector as low-risk-low-return investment options.

Communication - Engage with public using communication channels beyond bill-stuffers and calendars with kid's drawings. Develop relationships with community organizations without explicitly trying the 'educate' the public. Lose the word "Outreach" from all your vocabulary. Be a partner.

For more details.

Protean Vision: Making the Food-Energy-Water Nexus a Reality

Yesterday USEPA announced that $9.8 million will be provided in grants to 38 states, territories and tribes to help protect the health of swimmers at America’s beaches. The agency also launched an improved website, BEACON 2.0 for beach advisories and closings, which will allow the public to easily access  current water quality and pollution testing information for more than 6,000 U.S. beaches.

This is good news indeed. Our beaches will get cleaner, the public more aware, and hopefully as a result we will all enjoy a better quality of life. There are many who will say that $10 million is not enough to clean all the beaches in 38 states, and that is probably true.

We at Proteus believe that this effort, while commendable, is a very little part of the whole solution. The question here is why do we have beach closures? Where is the pollution coming from? There are two kinds of sources - point sources and nonpoint sources. We have some laws that try to protect these sources and probably does a good enough job at it. But EPA here is working on an 'end of the pipe' solution for the whole issue, and hence is not always successful is solving the complex problem.

And a complex problem it is. The problem is a web or interrelated issues - food, water, and energy. We can only go so far by addressing the issues within the silos of food, water, and energy. It is time now to start looking at all the relationships and devising enterprising inter-related solutions. Food production involves a lot of water, preferably clean water. With the erratic weather patterns and reduced flows in the rivers and streams, it is becoming increasingly difficult to carve out sufficient irrigation water to grow food. Cleaning the water for consumption and also the wastewater for reintroduction into the rivers and streams are also becoming more and more expensive due to ever increasing energy prices. Energy production on the other hand requires a lot of water for cooling towers and process. Even if we want to invest in "green" biofuels, we still need water to develop them which is becoming scarce. The way the world works right now is that the three industries (agriculture, water, and energy) and their governing agencies and laws act in their silos. Each group sets goals, creates plans, and embarks on those plans without consulting the other groups. In governments around the world, there is no integration of policies!

Source: WEF 2011

As the world hits the seven billion mark, we enter a new era of resource restrictions. Scarcity of food, water, and energy will become more severe and conflicts will arise, there is no doubt about it. The silver lining in this is that we will become more resourceful (pun intended) to devise solutions for this resource strapped planet. At Proteus, we believe that we can achieve this by four ways, and equal strides are needed in each of these paths:

• Businesses need to become resource efficient, preferably with a net-zero environmental footprint.
• Governments will need to develop integrated policies that encompass food-water-energy nexus.
• NGOs and other non-profits will need to start taking very active role in developing solutions, sometimes leading the thought process.
• Citizens of the world will need to make consumption decisions with sustainability in mind.

Businesses need to become resource efficient, preferably with a net-zero environmental footprint. It makes business sense to focus on resource efficiency because as the resources get depleted, the competitive market will leave no choice for businesses. The risks of resource depletion and uncertainty will become so high that conservation and efficiency will dominate decisions to ensure economic success. Sustainability focus is no longer a public relations campaign, it's a matter of survival. We see some companies already embracing this mantra and through our incubation services, Proteus now helps young start-up companies to make the right start. We also counsel established companies and municipalities to review their current strategies and procedures and reorient to focus on the triple bottom line: people, planet, and profit.

Governments around the world will need to develop integrated policies that encompass food-water-energy nexus. Governments and it's agencies including municipalities need to focus on creating holistic policies that address the issues and challenges in all the three industry sectors. Care should be taken so that policies of one sector do not erode the policies of the other. Proteus has the foresight and talent to  help build that consensus and facilitate the creation of these integrated policies. Out specific talent lies int he fact that we are Open and Willing to new ideas, knowledge, and perspectives. We see the elephant for what it is and hence can direct the teams to move towards solutions that are fit-for-purpose.

Graphic credit

NGOs and other non-profits will need to start taking very active role in developing solutions, sometimes leading the thought process. We see a great need for NGOs and other non-profits to work as involved stakeholders in developing solutions, both in developing and developed countries. We commend and support organizations like Water For People that focus on implementing projects only when the entire local community of entrepreneurs, civil society, and governments are involved and engaged. We believe that economic, social and environmentally sustainable projects can only happen when we can establish creative, collaborative solutions that allow people to build, take ownership, and maintain their own systems. This empowering of everyone transforms people’s lives by improving health and economic productivity. During our daily business here at Proteus, we engage with NGOs and non-profits by mutual education, discussion, and exchange of ideas.

Citizens of the world will need to make consumption decisions with sustainability in mind. This is indeed a tall order to ask every global citizen to understand the state of the planet and it's frailty and then make choices that will turn the tide from personal greed towards a sense of cohabitation. This is very difficult. But it is not impossible. At Proteus, we strive to lead by example and help spread the 'story' by education and collaboration. We also commend agencies that have started a mass movement to determine how we can produce and consume more sustainably.

PROTEUS Consulting is 15 months old. We have had a great journey and look forward to a fantastic year ahead. We appreciate the support of all our mentors and well-wishers, we could not have done it without you. Thank you!

The Challenge for CleanTech

PROTEUS Consulting is very involved in CleanTech and we are pleased to see the innovation happening in recycling, renewable energy (wind, solar, hydro, biofuels, biomass), energy efficiency, water efficiency, gray water, lighting, electric motors, information technology, and green transportation. The aim of these technologies are to create a smaller environmental footprint and reduce pollution. This indeed great that it's happening, it was needed.

The concern that we have, however, is about sustainability. Sustainability is about incorporating all the three aspects - economic, environmental, and people, and to look at viability of a technology / project on a long-tern life-cycle scale. This is best shown in this graphic by Water Corporation.

Most CleanTech projects we are finding these days are predominantly in the second Economic slice (i.e. "Find Efficiencies"). Most technologies deal with "Prevent Harm" in Environmental slice with very few actually looking at "Conserve Environmental Value". As for the Social aspect, most of these technologies are also in the first slice - "Protect Health & Wellbeing".

We feel that the push has to be towards "Create Value, Enhance Ecological Resilience, and Enhance Communities". For that life cycle analysis of the proposed technologies is essential and imperative. As an end-user, owners should ask for a comprehensive assessment of the entire technology and evaluate it's complete impact. As a clean technology provider, one should also look at presenting this information to the client. How else can a technology really be proclaimed as a 'CleanTech'? What are the metrics?

Another post on this issue can be found here.

Incubator for Promising New Technologies

Proteus acts as an Incubator for promising new technologies that have the potential to benefit the water and wastewater industry. Right now, Proteus has one client in this arena and is having initial talks with four other clients.

As an incubator for a new technology, Proteus provides the following services:

• Marketing. Introduce the business to water and wastewater clients who need the new technology.
• Strategic Partners. Help network with other businesses with complementary services to create a strong team.
• Funding. Review technology and find Federal / State/ Other funding opportunities for project implementation.
• Training. Train the business leaders on the 'way-to-do-business' with the water and wastewater agencies, municipal organizations, State and Federal government.
• Business Development. Help with regulatory compliance and permitting. Help chart out the path to future in the water and wastewater industry.
• Mentor. Help with presentations targeted to clients' needs, help with business basics, technology commercialization advice.

Why does Proteus do this? At Proteus we believe that "You do not invent the transistor while trying to perfect the vacuum tube". Our water and wastewater industry has been too slow to adopt new ideas and technologies. Most of the development in this industry over the last three decades has been trying to perfect what we already have. We have almost as many associations as there are people in the industry and in most of these meetings you find the same kind of presentations and thoughts. We are spinning our wheels! 

With the CleanTech and Social Connectivity revolution sweeping the planet right now, our industry has a lot to benefit from it. There are innovative technologies being developed and some of them have great promise. Proteus wants to introduce these new and fresh ideas to our industry and help the industry and the entrepreneurs find a perfect match. Yes, we are a kind of 'match-making' service!

How do we do this? Proteus is here to help both the entrepreneur with the new idea and the municipal client. We understand and appreciate the issues from both sides. Our core philosophy in operating our business is to help create a win-win situation - the municipal client gets their need resolved with a fit-for-purpose solution, while the entrepreneur gets established as a credible technology provider in the water and wastewater industry. We do not push or peddle a technology where there is no need for it, we are not a sales representative. Rather we are a business consultant to both parties, enabling a perfect fit between 'the need' and 'the solution'. This is how we do it:

• We will need to know details about your technology, it's promise and it's limitations. We will gladly sign an NDA. Please be very frank with us on the details. We are not here to steal your intellectual property, we are here to help you build a successful product and business.
• We work with you as a consultant on retainer.
• We will be your guide and be on a constant look out for opportunities for you. We will be your support for marketing, finding strategic partners, help you look for funding, chart your course through permitting, etc. We will be your friend, through thick and thin.

At Proteus, we have a penchant for sustainable solutions - economic, environmental, and social. The technologies that we support need to be environmentally viable, provide a measurable benefit to the water / wastewater industry, and have a way to ease the life of everyone using the technology.

Technology Spotlight: Energy from Stormwater

Over the years regulations have targeted point sources of pollution and treatment has been focused on discharges from such sources. Almost 40 years since the Clean Water Act, we have started looking at watershed approach to deal with non-point sources of pollution.  EPA now recognizes that stormwater management is of prime importance and regulatory interest is being focused at treating stormwater. This will eventually lead to cleaner water bodies - streams, rivers, lakes, and oceans. Dealing with these non-point sources is a daunting task, not only because of the size and scope of the issues involved, but also due to the wide variation of regulatory and permitting structures that have developed all over the country since the 70s. It will be interesting to see how this works out in the coming decade and a regional approach with national oversight will be very welcome.

SmartSponge by AbTech Industries

As a part of Proteus Consulting's Technology Exchange, we would like to highlight SmartSponge by AbTech Industries. This 'sponge' has tremendous porosity and soaks up hydrocarbons while allowing the flow of water. What we find interesting is that the collected hydrocarbons can be harvested for energy in waste-to-energy facilities, cement kilns, asphalt plants, etc. Of course, the 'sponge' also works at decreasing the suspended solids by limited pore size, and possibly also coliform bacteria by impregnating the 'sponge' with antibacterial agents. We are a bit skeptic about the antibacterial 'sponge' because bacteria will soon develop resistance to the agent - it is after all the law of evolution! However, we are quite impressed by the ability of this 'sponge' to absorb hydrocarbons and possibility of using it as a fuel.

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By Technology Exchange, Proteus Consulting brings forth new ideas and innovative products to our clients. These products have been researched and vetted for the water industry by us and have been recommended only after we have been convinced that they have a potential to help our clients achieve their goals to provide a clean sustainable world.

Water-Energy Nexus – It’s not a pie-in-the sky anymore – It’s happening!

Proteus Consulting is implementing the Water-Energy Nexus! We have teamed with Viridity Energy to identify avenues of energy savings at water and wastewater facilities. Our team undertakes a thorough evaluation of the use of energy resources at water and wastewater facilities and develops a management algorithm to optimally schedule energy management a day-ahead and real-time energy markets. This is called Dynamic Energy Optimization.

There are many energy auditors who review facilities and identify capital improvement projects to reduce energy usage, for example, implementing VFDs on pumps and fans, or adding efficient blowers. Usually these measures have a return on investment of two to four years with subsidies from the energy companies and the government.  Then what? Well, the Proteus-Viridity Team goes a step ahead. We help create a continuous revenue stream back to the utility by real time monitoring and management of energy use and then working the energy market.

Currently, the Proteus-Viridity Team is assisting New York City Department of Environmental Protection (NYC DEP) to enable energy optimization at their wastewater treatment facilities that treat 1.3 billion gallons of wastewater in the five boroughs of the great city.

The Green Car

I am thinking of buying a new car. I drive a 2001 Subaru Forester and absolutely love the car. But I know that sooner or later I will have to get a new one. So what should I get? Of course, I want to go as 'green' as possible. With the new Volt and Leaf coming to the market, the electric cars seem to be a 'greener' choice compared to the hybrids. But is it really? What if my car is actually running on coal? This article got me all worked up! Where is the electricity I am charging my car by really coming from? How much 'greener' is that source of electricity  than the gasoline?

I am going to research this issue further. Stay tuned.