15 minute read
Special Feature - Energy Management
Energy Management
Chris Henderson, Head of Data and Analytics at CNG Energy COVID-19 has triggered a sharp rise in businesses Electricity customers can looking to better manage their energy supply; as appoint who they would like to manage their meter, such, businesses are seeking to reduce costs and this can change without where possible, without compromising on output removing it. However with gas, this is pre appointed for or service. you by your energy supplier; it is possible to change this Understanding your energy use Having a plan for your energy management can mean reduced bills and money saved, but beyond this, a real focus on your energy will highlight your outgoings, broaden your understanding of any potential drains and challenges, and therefore identify any operational decisions you could make to tackle these. clear when it comes to energy management, and that’s the importance of data analytics. Having a clear view of your usage data may help you decrease your spend, but also contribute toward the 2050 Net Zero target. There are a few ways you can manage your energy usage data; some suppliers can offer analytics, via a platform, to help you better monitor and manage your energy. to a metering agent who can better manage your data, but there are a few things to be aware of before you do so. Things to look out for We know you want to save money, so it may be very tempting to move to an agent who can provide your business with the data analytics you need to cut costs. However, as with everything, there are some important There are many ways for businesses to be able to manage their energy, through both Smart Meters, their suppliers and Metering agents. For customers who want complete control, there are also third parties who can offer much more indepth data analytics, such things to think about first: • Ensure you speak to your energy supplier, they may be able to explore Smart Meters In 2008, the UK Government as metering agents. Metering Agents options available for you or work on your behalf to negotiate costs with the began making preparations to roll-out smart meters to help with better energy management. Having energy smart data is a great step forward in giving businesses control and becoming more usage aware. Smart meters measure energy use, sending readings directly to your supplier through a wireless connection; monthly, daily or half-hourly. Smart meters not only mean no more estimated bills, they do a lot of the legwork of identifying those energy challenges we mentioned earlier. Your gas meter is managed and owned by a metering agent. They are responsible for the design, installation, commissioning, maintenance, removal and disposal of meters. Suppliers rent the meter from the agent, and pay for ongoing maintenance. With electricity, the person who owns the meter (Meter Asset Provider) and the person who operates the meter (Meter Operator) can be different. As well as providing indepth data, they also ensure the safety of your meter, will come out to fix it if it stops • • alternative metering agent If you choose to move, it is important to find out whether your supplier will absorb the costs that may be in place - you don’t want to be hit with a surprise large bill. It’s good to measure and weigh up each of the benefits to ensure whether they are comparable to your current metering agent, if not better. If your supply is cut off, check how soon your metering agent is able to respond. Data Management There is one thing that is registering or turns off gas supply and much more. Response times differ with domestic and non-
domestic supply, with domestic supply they are under stricter measures whereas non-domestic are not seen as a priority, therefore it’s important to know whether you are able to survive that period without supply. • Data comes from your meter, and in order for a metering agent to look at data and consumption, they need to be able to access the information from your meter. In an ideal world, the new metering agent for your gas meter will come to a commercial arrangement to procure the meters that are in situ from the incumbent agent, this means that no meter exchange needs to occur and no termination fees are triggered. However, more and more frequently, suppliers’ meters are having to be taken out and replaced with a new one – which actually could be an older meter than you currently have. This can lead to problems, as if the new agent removes the meter without notice, the old agent can charge a termination fee to the supplier, which is liable to the customer and can be passed down. Depending on the age of the meter, in some cases customers have been hit with bills in the hundreds of thousands - AMR meter costs can be higher still.
Energy management too much to manage?
energy efficiency, cost cutting and helping to reach Net Zero. Finding a solution that’s right for you has many benefits, and is not something you should be put off from doing - it’s just important to be informed when making any decisions.
CNG Energy Ltd is a multiaward-winning commercial energy supplier, supplying over 48,000 businesses in the UK, across a range of sectors; including construction and manufacturing as well as hospitality and retail. Whilst predominantly a supplier of natural gas we also offer a Green Gas alternative along with EV charge points and we continue to look to diversify our offer further, with the aim of becoming the leading hub for data driven energy analytics, advice and education for SMEs. www.cngltd.co.uk
Energy Management
BREEAM, Passivhaus, EnerPHit all aided with Selectaglaze secondary glazing
With the pressing need to reduce the amount of energy used in buildings, secondary glazing can be a solution to a multitude of twenty first century problems. Fitted to the room side of existing windows, Selectaglaze’s secondary glazing is sympathetically designed to meet the needs of the project.
To improve energy efficiency and to combat draughty old inefficient windows, the installation of secondary glazing with low emissivity glass will achieve a U-value of 1.8. Selectaglaze secondary glazing has been used on a number of projects that have gone on to gain BREEAM ratings or reaching EnerPHit Standards.
An historic Listed Georgian townhouse in London’s Bloomsbury was transformed into a comfortable, peaceful and energy efficient home that approaches Passivhaus EnerPHit standards. This was achieved by using an advanced secondary glazing system from Selectaglaze that markedly improves the performance of the traditional, single glazed sash windows. The tightly installed vacuum sealed secondary unit, with a centre pane value U-value of 1.0, has proven effective in combating draughts with air tightness close to 1 air change per hour.
Secondary glazing also provides extremely effective acoustic insulation for containment or abatement. A noise level reduction of 45dB is possible, rising to more than 50dB when specialist acoustic glass is used, as well as an air gap of 100mm or more. Another benefit of secondary glazing is enhanced levels of security. Selectaglaze’s range of security units have been fully tested and certified to provide protection against blast, physical and ballistic attack and 30 minute fire Integrity rating.
Where constraints from planning guidelines, lease conditions or budgets prevent the windows from being replaced secondary glazing will provide an attractive and cost effective solution. It is also a reversible intervention and therefore highly appropriate for Listed and period buildings.
Founded in 1966, Royal Warrant Holder Selectaglaze offers noise insulation, improved building energy performance, environmental control and certified security for all building types.
For further information, please contact Selectaglaze: 01727 837271 enquiries@selectaglaze.co.uk www.selectaglaze.co.uk
Energy Management
Super-deduction helps businesses buy new equipment
In addition to the £1 million Annual Investment Allowance (AIA) for investments into plant and machinery, at Budget 2021 the Government announced a new super-deduction.
For two years from 1 April 2021, businesses investing in new plant and machinery will be able to claim: • a 130% super-deduction capital allowance on qualifying plant and machinery investments • a 50% first-year allowance for qualifying special rate assets
The super-deduction, or new 50% first-year allowance, allows businesses to cut their tax bill, making it less expensive to invest in new plant and machinery. For qualifying equipment, a business could benefit from a super-deduction of 130% of the investment incurred. For example, on spending of £100,000 a business could deduct £130,000 from its taxable profits, which would represent a reduction of up to £24,700 on its corporation tax bill for that tax period.
One way to increase the financial return of investing in new equipment would be to select the equipment from the Government’s world-leading Energy Technology List (ETL). This list features 14,000 high performing energy efficient products that save energy and money through their use.
All products listed on the ETL are verified as meeting higher energy efficient performance standards, typically in the top 25% of products available in the market. By investing in ETL listed energy saving equipment, businesses can lower energy bills, reduce greenhouse gas emissions and shorten investment payback periods.
The ETL showcases 56 higher efficiency technologies including boilers, chillers, lights, heat pumps, and electric motors. A wide range of UK sectors, such as manufacturing, retail and hospitality already benefit from the energy and cost savings achieved by purchasing ETL listed equipment.
Businesses are increasingly feeling the pressure to hit carbon reduction targets aligned with the worldwide need to achieve net zero emissions by 2050. Many businesses have already committed to achieve net zero as part of the BEIS COP26 Race To Zero campaign, and the ETL can be a vital tool in supporting their efforts.
Using tax incentives such as the super-deduction can help businesses create valuable financial savings while also driving the necessary changes to reduce emissions.
For more information see the HM Treasury announcement here.
Search the Energy Technology List here to find top-performing products in 56 different technology categories.
Energy Management
Heat pumps: lowering carbon and costs
The UK has reduced greenhouse gas emissions by 43% compared to 1990, thanks to the rigorous and impactful Climate Change Act. Currently celebrating its tenth birthday, the Climate Change Act was launched in a bid to set a binding emissions target for the UK by 2050. Ensuring that the UK continues to build on the strong foundations set in previous years and remains on track to meeting the third carbon budget will require a concerted effort across all industries. However, certain sectors will require significant attention.
Energy use in the built environment is one of the most important aspects that must be addressed in the UK and abroad in the near future. Around 40% of the primary energy use within Europe is related to the building sector, with buildings accounting for 34% of carbon emissions in the UK. Among the key drivers of investment in efficiency include carbon reduction, fuel poverty alleviation and cost savings. The major challenge lies in the decarbonisation of heat. The UK has a particularly rigorous framework for achieving decarbonisation, and the decarbonisation of heat will become increasingly important in the coming years. Nevertheless, doing so will be an arduous task. Decarbonisation policies up to now have mainly affected electricity, leading to fundamental changes and challenges for the sector. It is now time for heat to follow suit.
One of the most promising technologies aimed at increasing efficiency and reducing emissions in the building sector is provided by electric heat pumps. Heat pumps offer a modern, low-carbon solution to provide space heating and domestic hot water and are particularly appropriate in countries that have both high heating requirements (in winter) and cooling requirements (in summer).
At the time of writing, there are 11,279,386 installed in Europe, saving 29.8 million tCO2, producing 116 TWh of renewable energy and providing 60,000 jobs. What is a heat pump and how does it work?
A heat pump is an electrical device that extracts heat from one place and transfers it to another. Heat pumps are a highly efficient way to heat buildings. They draw in heat from the environment and use electricity to raise the temperature to a suitable level for space heating and hot water. Typically for each kWh of electricity consumed, 2.5-4kWh heat is supplied. Heat pumps deliver lower temperatures than boilers, so they work well with underfloor heating in new buildings or radiators with a larger surface area.
The most conventionally applied heat pump is the mechanical heat pump, which is based on the compression and expansion of a working fluid, or ‘refrigerant’. Heat pumps transfer heat by circulating the refrigerant through a cycle of evaporation and condensation. A heat pump comprises four main components: evaporator, compressor, condenser and expansion device. The refrigerant is pumped by a compressor between two heat exchanger coils. In one coil, the refrigerant is evaporated at low pressure and absorbs heat from its surroundings. The refrigerant is then compressed en-route to the other coil, where it condenses at high pressure. At this point, it releases the heat it absorbed earlier in the cycle Figure 1: Heat pumps work by absorbing heat from a cold space and releasing it to a warmer one
There is a range of heat pumps on the market, and how you choose it will depend on several factors, such as energy requirements, current building heating infrastructure and site characteristics. Heat pumps can be divided into two broad sub-categories: air-source and geothermal (ground-source).
Air source heat pumps
Air-source heat pumps extract heat from the outside air, operating like fridges in reverse. These heat pumps in a residential setting can save more than 2 tonnes of carbon per year, contributing up to 20% less CO2e than gas boilers and up to 70% less than electric systems. As well as providing a heat source in winter, the cycle is fully reversible in the summer, allowing heat pumps to provide year-round climate control. This technology can be an efficient means of saving money and saving carbon emissions if carefully designed and specified for the appropriate buildings. Ground-source heat pumps
Conversely, ground-source heat pumps transfer heat from the ground into a building. A ground-source heat pump system needs land available to lay heat collectors in the ground – either laterally in trenches, or vertically in boreholes. The basic elements of a ground source heat pump system are the heat pump itself, the ground loop and the distribution system. A significant advantage of using a ground-source system over an air-source equivalent is the higher coefficient of performance in the winter, as the temperature in the ground is higher than the ambient air temperature. Are heat pumps an effective solution for UK businesses?
These technologies are well-established and widely used in the UK and backed by attractive government incentives. The Renewable Heat Incentive (RHI) is a government environmental programme that provides financial incentives aimed at increasing the uptake of renewable heat by businesses, the public sector and non-profit organisations. Eligible installations receive quarterly payments over 20 years based on the amount of useful heat generated.
Heat pumps are a great alternative to many of the current carbon-intensive heating methods and represent a smart long-term investment for businesses and households alike. However, it is worth considering the below before installing your new system.
Before purchasing this technology, it is important to assess the associated benefits and costs. While these systems have lower fuel costs than conventional heating systems, they have a sizable upfront installation cost which often proves as a barrier to SMEs. Taking the following considerations will allow businesses to pick up the most suitable system for your needs: • Placement: An air-source heat pump requires plenty of space, whether it is wall or ground-mounted. Ground-source systems will require significant land area and are also likely to be subject to strict planning regulations. Nevertheless, heat pumps are far more flexible from a placement point of view than gas boilers and indeed most renewable energy technologies. • Cost of air source heat pump system vs current heating infrastructure: Heat pumps can markedly reduce energy costs when in place of conventional electric heating, as well as expensive fuels like oil, LPG or coal. Savings over traditional central heating are however less significant due to the low cost of gas. • Insulation: Heating only works if the heat can be retained. It is important to ensure that the proposed building is suitably energy-efficient. Investing in low-cost insulative measures like improved building fabric and window glazing will help to keep the heat in and maximise heat pump efficiency.
Despite this, research indicates that around 22,000 heat pumps were installed in the UK in 2017, which represents an increase of 18% in volume compared to the previous year.
This increase has been brought about by the realisation of the various benefits of this technology, including: • Reduced fuel bills and carbon emissions • Minimal maintenance required • No fuel deliveries needed • Income through the government’s Renewable Heat Incentive (RHI)
Energy efficiency measures have the potential to deliver the sizeable emissions cuts needed to meet the targets set by the Climate Change Act. Technologies like heat pumps represent low-hanging fruits for both businesses and households in the UK and abroad.
While they may not be for everyone, heat pumps represent a modern, cost-effective solution to reducing both your energy costs and carbon footprint.
We at Avieco are energy experts, working with organisations like yours to map your energy impacts, identify areas to prioritise, and build the case for improving your performance in energy productivity, ultimately helping you becoming more sustainable.
