Energy Manager June 2018 by Abbey Publishing

JUNE 2018

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How to choose & run boilers to optimise energy efficiency in heat networks See page 26 INSIDE THIS ISSUE:

NHS can spend less on energy and more on people

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Three challenges for renewable energy

FRONT COVER STORY: How to choose and run boilers to optimise energy efficiency in heat networks See Page 26 www.hamworthy-heating.com

JUNE 2018

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INSIDE:

‘Smart design’ boxes ward off the Legionella threat

Why future generations will focus on reusing energy rather than reducing it

Energy cost rises: mitigating the risks

Goodlight LED Lighting optimises PR working environment

CHP – An Energy-Efficient Solution to Growing Cost Concerns

UK beacon for community energy switched on by Lord Henley

Volvo Trucks backs new research to turn old diesel engines into green energy storage machines

ISSN 2057-5912 (Print) ISSN 2057-5920 (Online)

ENERGY MANAGER MAGAZINE • JUNE 2018

NEWS

‘SMART DESIGN’ BOXES WARD OFF THE LEGIONELLA THREAT

Chris Goggin of Rinnai looks at how smart design and control options can design out Legionella proliferation.

egionella control and risk avoidance thereof are top of the list when designing heating and hot water systems. The whole supply chain – manufacturers and distributors through contractors to end-users – need to plan and design systems to eliminate the risk of Legionella. It is one area where avoidance and prevention are the only sensible action to take to avoid problems further down the road. Our modern lifestyle demands that hot water is available on tap at any time, day or night. So how can installers and designers reduce the fear of Legionella breaking out – and give peace of mind to customers and end-users? Quite simple – limit the volume of storage on your hot water system. A glance through the Health & Safety Executive ‘Approved Code of Practice’ highlights the vast amount of detailed maintenance needed to keep a stored hot water system Legionella free; the level of work involved is time consuming, expensive and must be adhered to religiously. According to the HSE stored hot water systems present an enhanced risk for the proliferation of Legionella, especially at the base of calorifiers where the incoming water merges with the existing hot water. Legionella bacteria multiply where temperatures are between 20-45°C. Water at the base of the calorifier is liable to collect sedimented organic and mineral deposits, which support bacterial growth, including Legionella, which is then distributed throughout the system. To ensure total safety, therefore, the whole water contents of the calorifier,

including at the base, must be heated to a temperature of 60˚C for one hour each day. A lot of these problems are solved by choosing to install a continuous flow hot water heating system. With a gas-fired continuous flow system there is no cylinder to cause problems because the cold water enters the water heater directly from the mains and is immediately heated to advisory levels. With Rinnai continuous flow units water temperature for distribution is accurate to ±1˚C. The fact that there is no stratification as there is no storage ensures permanent even temperature. There is no requirement to heat a volume of water just to ensure the elimination of Legionella bacteria as the minimum temperature that a continuous flow unit achieves exceeds advisory levels. However, when considering design parameters that incorporate secondary return systems pipework and dead legs can act as water storage. ACOP L8 (Legionella Guidance) highlights that (continuous forms of instantaneous) systems installed close to the point of use have a greatly reduced risk of legionella proliferation. Despite this in many instances commercial applications are designed around a secondary hot water return. So, when the taps or shower heads stop running, after use, the pipework will be full of cooling water capable of breeding Legionella bacteria; therefore you do have stored water and appropriate safeguards must be put in place. So, what is a smart design consideration to eliminate any risk of Legionella bacteria multiplying in a hot water system without

keeping water circulating constantly at 60 degrees? The technology is available in the form of smart controls linked to the water heating system, inside which is a timer channel programme and a temperature controller. The timer will over-ride the temperature control for a short period and then revert back to safe levels. This combination allows for safe running of water at 42°C core temperature during the day and thermal shock the system at 60°C intermittently at times when the building is not in use. By the time the building opens again, core temperature is back down to 42°C for safe use. Some parts of the hot water system, such as rarely used shower heads or terminal fittings, will require regular maintenance and frequent checks to ensure the hot water system is operating correctly. It is a very simple technology that takes advantage of innate high-tech controls within the water heater, it eliminates risk from Legionella bacteria and is ideal for use in care homes, hospitals and sports clubs - any large or small scale site. www.rinnaiuk.com

MANCHESTER CITY COUNCIL SIGNS £3.6M GAS DEAL WITH GAZPROM ENERGY

anchester City Council has signed a one year contract estimated at £3.6m with Gazprom Energy for the supply and management of gas to over 350 council sites, including leisure services, offices and the majority of schools. Moving to Gazprom Energy will provide significant savings on the council’s energy bills, as well as access to regular consumption data via automated meter reading (AMR) technology and energy services to enable efficient and accurate management of future expenditure. The contract follows the council undergoing an Official Journal of the

European Union (OJEU) tender process in which Gazprom Energy was scored on price and service, and achieved higher than other energy providers. Gazprom Energy also scored highly in social value due to its apprenticeship scheme and its Manchester presence, meaning that the deal would also contribute to the local economy. Through the contract Gazprom Energy will not only provide gas to Manchester City Council, but also to some neighbouring councils, with the framework being available to all ten Greater Manchester Combined Authorities. The contract is on

ENERGY MANAGER MAGAZINE • JUNE 2018

fixed pricing terms, giving all participating councils greater budgeting ability. Gazprom Energy worked closely with Manchester City Council to implement high quality AMR technology to enable half hourly gas consumption data across the whole of the area. This will give the council a range of benefits including accurate bills and greater insight into energy usage. The deal will see Gazprom Energy provide 149 million GWh of gas, and the framework can be extended for three additional years. www.gazprom-energy.co.uk.

NEWS

CMA CONSIDERS REGULATION FOR HEAT NETWORKS

he CMA has published the initial findings in its heat networks market study, proposing greater protection for customers. The Competition and Markets Authority’s (CMA) study – which began in December – set out to establish whether heat network customers were getting a good deal in areas such as price, quality and service levels. It has found that, for many, heat networks offer prices which are the same or lower than people on a gas or electricity tariff and have comparable levels of customer service. But some customers – mainly those living in privately owned or rented properties – pay more for their heat through a heat network and, across the board, heat network customers aren’t getting the same levels of protection that gas and electricity customers receive. The study found three main areas of concern: • Design and build – some property developers may try to cut the upfront costs of installing a network, resulting in higher ongoing operating costs, usually paid for by customers. Heat networks may also be installed where they are

the best way to meet planning requirements, rather than the best solution for customers. • Monopoly of supply – because customers often have no alternative sources of heat and may be locked into long-term contracts, they cannot hold suppliers to account on price or quality. • Low transparency – before moving in to a property, people often don’t know that their energy will be supplied by a heat network and once people are living in the property, customer bills often fail to set out key information. To address these issues – and given the expected expansion in the market – the CMA’s provisional view is that the sector should be regulated. This will mean: • consumer protections for all heat network customers, providing benefits such as complaints handling and access to an ombudsman and support for vulnerable customers • steps to improve the design and build of networks • all suppliers adhering to mandatory rules and criteria around price and

quality in long-term contracts measures to improve transparency including better information on networks, provision of heat supply agreements or contracts and clearer and more detailed bills Rachel Merelie, Senior Director, Delivery and Sector Regulation, said: “Heat networks can play an important role in cutting carbon emissions and keeping down energy bills, but some customers are not getting a good deal for this essential service. “There is currently no regulator with responsibility for heat networks, so customers do not automatically benefit from the rights and protections that gas and electricity customers receive. “Our current view is that regulation is now needed, to ensure that heat network customers receive equivalent levels of protection to gas and electricity customers.” Some of our recommendations would require primary legislation. We are working closely with the UK government as well as the Scottish and Welsh governments to develop our recommendations. The CMA will publish a final report in the summer. www.cma.gsi.gov.uk •

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NEWS

ENERGY DAY 2018 At Microsoft’s British headquarters in Thames Valley Park, Reading, software provider COPA-DATA, invited leaders from the UK’s energy industry to its zenon Energy Day 2018. The event welcomed industry experts and energy suppliers to address the current challenges the sector is facing — renewable generation, substation automation, IoT and cyber security.

ntroduced with a welcome speech from COPA-DATA UK’s managing director, Martyn Williams, the day encompassed a series of talks from industry experts. Speakers included Ian Banham, IoT Technical Sales Lead UK for Microsoft, Chris Dormer of systems integrator, Capula and Jürgen Resch, Energy Industry Manager at COPA-DATA.

PREPARING FOR RENEWABLES Only 24 per cent of the UK’s electricity comes from renewable sources — a relatively low figure compared to some of our European neighbours. However, the percentage is growing. In 2000, Britain’s renewable capacity was 3,000 MW, and rose elevenfold by the end of 2016 to 33,000 MW. To prepare for the impending challenges for this market, Jürgen Resch’s presentation discussed how software can alleviate some of the common questions associated with renewable energy generation, including the growing demand for energy storage. “Energy storage is often used in combination with renewables because renewable energy is volatile and fluctuating,” explained Resch. “In Korea, the government is pumping $5 billion dollars into energy storage systems. In fact, every new building that is built in Korea gets an energy storage battery fitted into the basement.” BMW’s battery storage farm in Leipzig was also presented as an example. The facility, which uses COPA-DATA’s zenon as the main control centre system, uses 700 high-capacity used battery packs from BMW i3s and could also provide storage capacity for local wind energy generation. Moving onto specific issued related to wind generation, Resch discussed the potential challenge of reporting in a sector reliant on unpredictable energy sources. “Reports are particularly important in the wind power industry,” continued Resch. “Typically, owners of wind farms are investors and they want to see profits. Using software, like zenon Analyzer, operators can generate operational reports. “These reports range from a basic table with the wind speeds, output of a turbine and its associated profit, or a more sophisticated report with an indication of the turbines performance against specific key performance indicators (KPIs).”

BEST PRACTICE FOR SUBSTATION AUTOMATION Following the morning’s keynote speeches on renewable energy, Chris Dormer of Capula, presented the audience with a real-life case study. The speech discussed how smart automation helped to address significant issues related to the critical assets of the National Grid’s substations, where Capula was contracted to refurbish the existing substation control system at New Cross. “Like a lot of companies that have developed, grown and acquired assets over the years, energy providers tend to end up with a mass mixture of different types of technology, legacy equipment and various ways to handling data,” explained Dormer. “For projects like this, the first key evaluation factor is choosing control software with legacy communication. We need to ensure the software can talk to both old legacy equipment in substations as well as modern protocol communications, whilst also ensuring it was scalable and compliant. “The National Grid will make large investments into IEC 61850 compatible equipment, therefore for this project, we needed an IEC 61850 solution. Any system we put in, we want to support it for the next 25 years. Everyone is talking about digital substations right now, but there are not that many of them out there. That said, we need to prepare and be ready.” The case study, which was a collaborative project with COPA-DATA, was recognised at the UK Energy Innovation Awards 2017, where it was awarded the Best Innovation Contributing to Quality and Reliability of Electricity Supply. “Our collaboration with COPA-DATA allows us to address modern energy challenges,” explained Mark Hardy, Managing Director of Capula upon winning the award last year. “It helps drive through the best value for energy customers.”

CYBER SECURITY “Raise your hand if you consider cyber security to be a benefit?” Mark Clemens, Technical Product Manager at COPA-DATA asked the audience during his keynote speech on cyber security. “Now, raise your hand if you consider it to be a burden?” Clemens’ question provided interesting

ENERGY MANAGER MAGAZINE • JUNE 2018

results. Numerous attendees kept their hands raised for both questions, giving an insight into the perception of cyber security for those operating in the energy industry — a necessary evil. “A cyber-attack on our current infrastructure could be easy to execute,” continued Clemens. “95 per cent of communication protocols in automation systems don’t provide any security features. For those that do provide security, the mechanisms are often simply bolted-on.” Clemens continued to explain how substation design can strengthen the security of these sites. He suggested that, despite living in the era of IoT, energy companies should limit the communication between devices to only those that are necessary. The first step he suggested was to establish a list of assets, including any temporary assets like vendor connections and portable devices. “There are lots of entry points into a substation, not only through the firewall but through vendors and suppliers too. 0For example, if an engineer is working in the substation and believe they are testing in simulation mode, but they are not, it could cause detrimental problems.”

COLLABORATING WITH MICROSOFT Microsoft’s UK IoT Technical Sales Lead, Ian Banham, began the afternoon’s presentations. His speech focused on the potential of cloud usage for energy companies. When asking attendees who had already invested in cloud usage, or planned on doing so, the audience proved to be a 50:50 split of cloud enthusiasts and sceptics. “IoT is nothing new,” stated Ian Banham, IoT Technical Sales Lead at Microsoft. “There’s plenty of kit that does IoT that is over 20 years old, it just wasn’t called IoT then. That said, there’s not a great deal of value in simply gathering data, you’ve got to do something with that data to realise the value from it. “The change in IoT is the way the technology has developed. That’s why we are encouraging our customers to work with companies like COPA-DATA. They have done the hard work for you because they have been through the process before.” Banham explained how Microsoft’s cloud platform, Azure, could be integrated with COPA-DATA’s automation software, zenon. In fact, COPA-DATA’s partnership with Microsoft is award-winning, COPA-DATA having won Microsoft Partner of the Year in the IoT category in 2017. . www.copadata.com

NEWS

NEW IDTECHEX RESEARCH REPORT FINDS INTEREST IN WATER POWER IS RISING

he new report from IDTechEx Research, “Wave, Tidal and Hydro Power 1W-10MW 2018-2038” finds that interest in water power is on the rise again as large orders are landed. The new vibrancy primarily concerns avoiding huge infrastructure and putting simpler devices in open water, particularly in the sea. At last, marketing led approaches satisfy new needs, particularly in a vast number of cases where cost of electricity is not key. Zero emission charging of water taxis uses necessarily invisible water turbines in city rivers. 10MW of new wave power for Bali is based on the fact that, “tourists do not want to see vast lifeless areas of black solar cells or giant propellers: they visit to get away from that”. Learn of two other wave power companies that respectively claim 111MW and 2.5 GW of business pipelines. Diesel gensets are going to need expensive additions to meet new emissions laws and already many in remote places have an easy-to-beat cost of electricity of up to $1/kWh. It is also easy to beat nuclear power where it is banned as in New Zealand, Germany, Polynesia and so on. Wave and tidal stream power can be almost continuous, employ a fraction of the materials in an offshore wind turbine and require less maintenance and fewer or no batteries than wind or solar: very different from their popular image. Primary author Dr Peter Harrop says, “Our facts-based analysis questions the argument that open water tidal power

is ahead of wave power. The marketing led approach is well established in wave power but only recently gaining traction in tidal power and the orderbook proves it. However, redeployable vessel-based tidal stream harvesters for needs down to 50kW are being prepared for markets including in non-tidal sea currents and large rivers. Superbly engineered experiments in tidal stream power have delivered far more electricity to the grid than waves have and the biggest investment. Best to say that wave and tidal stream will both create billion dollar businesses but they address different needs so they will rarely collide in the market place. One recent wave power order is a desalinator and one innovative sea floor tidal generator incorporates battery, sensors and acoustic monitoring and promises to be almost fit-and-forget with rapid installation and redeployment.” “We see a market of about $66 billion in 2038 but those selling solutions will enjoy a multiple of that. Entrepreneurial companies with modest funds may get to the billion dollar level earlier than some with grid-obsessed investors demanding head on competition with plummeting wind and solar costs, though some of those will succeed too, particularly if they gain the credibility of selling intermediate product as they go.” Invisibility, mobility, suitability for islands, for grid abandonment and the burgeoning needs at sea are powerful pluses now. Think desalination,

aquaculture (e.g. offshore ice making), ships, sea floor mining, smart buoys, oil and gas subsea equipment without umbilicals, ocean monitoring, microgrids and minigrids. Desalination doubles every ten years and aquaculture every 20 years but the zero emission power for them will grow faster. Solar and wind power can provide lowest cost zero emission electricity for much of this but wind power is unreliable and half as efficient when downsized and salt and bird droppings make solar at sea need a lot of maintenance. The report “Wave, Tidal and Hydro Power 1W-10MW 2018-2038” deeply examines the new technology. From 11 primary choices, learn favourite forms of tidal and wave power in physics, location and turbine design. How are the three leading wind turbine shapes performing underwater and what are the lessons? New vortex turbines useful in rivers? Wave energy electricity directly from triboelectrics, magnetostriction, dielectric elastomers? What does facts-based analysis of 26 leading developers, new interviews and their latest conference presentations teach us? Who is selling product, who is about to sell and what is the best match of their technology to market needs? It is all here, with emphasis on new markets and technologies even embracing electricity from city water supplies, tiny streams and boats under sail or moored in a tidestream. No other report is as comprehensive, up to date and insightful as the new “Wave, Tidal and Hydro Power 1W-10MW 2018-2038”. For more information see www.IDTechEx.com/wave.

APOLLO ENERGY WINS GOVERNMENT SUPPLIER STATUS FOR ITS BUREAU SERVICES

pollo has been included in the Crown Commercial Service’s three-year framework agreement for Energy Management. Public sector bodies and organisations will be able to procure Apollo Energy’s Bureau Services to monitor and control utilities usage and costs. The framework agreement RM3800 has been created Eddie Gray, joint Director of Apollo Energy

for a period of three years, with an option to extend for a fourth year. Public sector bodies from hospital trusts and schools to prisons and administrative centres will be able to access the following services from Apollo Energy under the framework agreement: • Bill Validation and Query Management • Tenant Billing • Budget Forecasting • Analysis and Reporting • Carbon/Compliance Reporting • Supplier Liaison • Project Tracking Apollo Energy, led by Directors Jackie and Eddie Gray, has been providing trusted utility management services

to public and private sector clients across the UK for almost 18 years. “We are absolutely delighted to have been featured on the Crown Commercial Service’s framework agreement and we are extremely well placed to deliver these services. “It’s great that an SME organisation like ourselves has an opportunity to work with public sector organisations and we look forward to sharing our expertise and capabilities to generate efficiencies and value,” explained Eddie. The Crown Commercial Service (CCS) helps Government, public and third sector organisations buy common goods and services. www.apolloenergy.co.uk

ENERGY MANAGER MAGAZINE • JUNE 2018

OPINION

WHY FUTURE GENERATIONS WILL FOCUS ON REUSING ENERGY RATHER THAN REDUCING IT AND WHY THIS IS THE ONLY WAY WE’LL SLOW CLIMATE CHANGE

cross the public sector energy is a major concern both for short term budgeting and long-term sustainability. In the future, finding ways not just to save energy but to develop ways to reuse energy that would otherwise be wasted will challenge our creativity at all levels. Looking ahead, wasting energy will be unthinkable - although this is good news, it won’t be enough to tackle the issues

José Melico, Founder of Zypho of increased energy demand and an ever-growing population. So, we will need to turn our attention to recapturing and reusing energy as well. This is needed if we’re to slow climate change and create a future with a sustainable energy system.

CURRENT ENERGY WASTAGE In the UK alone, more than half of the energy produced is wasted, right at

ENERGY MANAGER MAGAZINE • JUNE 2018

the source. 54 percent of heat energy generated at power plants escapes before it can be turned into useful electricity, according to a 2015 report by the Association for Decentralised Energy. This wasted energy is worth £9.5bn per year. Per person, that’s equivalent to more than half the average UK annual electricity bill – about £592. A great deal of heat energy is

OPINION a water heat recovery device that’s installed under a shower tray or bathtub to capture and reuse around 10°C of lost heat energy that would otherwise go down the drain. This energy is then reused to heat the cold water travelling to the shower tap, cutting carbon footprints and reducing energy bills by up to 30 per cent. Energy recovery is also occurring in different forms, and on a larger scale. For example, in the Swedish capital, the Stockholm Data Parks project is harvesting heat energy generated from the masses of computers in its data centres to help heat the homes of over 900,000 people in the city. The cold water used to cool the air in data centres to stop servers from overheating is, in turn, heatedup itself. But rather than wasting this now-hot water, it is distributed back to a cooling and heating agency and redistributed for heating homes. These two examples, Zypho and Stockholm Data Parks, illustrate how a combination of small scale units and large industrial scale projects can help us get more from the energy we are currently using. In the future, this heat recovery will be the key to reducing our energy use.

UNLIKELY NEW SOURCES FOR ENERGY GENERATION

lost in homes and buildings that are not energy efficient as well. This is why the 2012 Energy Efficiency Directive requires all new homes in the EU to have nearly zero-energy building (NZEB) status by 2020, and all new public buildings to be NZEBs by 2018. According to UK energy saving advice website, TheGreenAge, 35 percent of heat energy is lost in the home through the walls and gaps in and around windows and doors, 25 percent is lost through the roof, and another 10 per cent is lost through the floor. Insulation, sealing gaps, switching to more efficient modern boiler systems, and installing double glazed windows are obvious ways of reducing this kind of home energy wastage. Another, often overlooked problem is water heat wastage. Around 15-30 percent of a typical home energy bill is spent on heating water, while almost 90 percent of the energy used to heat shower water is wasted. This inspired me to design Zypho,

As well as reusing wasted energy, pioneers are also looking at using energy from some unlikely sources. For instance, Belgian company Turbulent is pioneering whirlpool turbines, which harvest river or canal water to provide low-cost energy to small rural communities, 24 hours a day. It’s even possible to harvest piezoelectric energy – electricity generated by the use of pressure – as the Institute of Physics (IoP) explains. One example involves using the force required to press a button to charge small, low-power electronic devices, thus replacing the need for batteries. This would also cut down the use of batteries, which are already complicated to dispose of as they contain chemicals and metals that are harmful to the environment, and to humans. On a larger scale, piezoelectric floor tiles could harvest “the kinetic energy generated by the footsteps of crowds to power ticket gates and display systems”. One company making this a reality is Pavegen which has installed smart floors and pavements in a number of locations. As well as harvesting otherwise wasted energy, we will also see a shift towards the reuse of waste itself. Marcus Gover, director at the

José Melico

UK advocacy group WRAP, told the Guardian that by 2025, waste disposers “won’t be burying or burning people’s rubbish as they do today”, they will instead be returning “valuable resources to manufacturers”. One solution, the Guardian highlights, “is turning waste into energy” – a market predicted to be worth $37.64bn by 2020. The article also references U.S. biotech firm, LanzaTech, “that uses patented microbes to convert carbon-rich waste into biofuel via a gas fermentation technology” and Novozymes, a Danish biotech firm that uses “an enzyme-based solution that converts used cooking oil or other lower grade oils into biodiesel”. All around the world, solutions are being tried and tested to create a greener and more energy efficient future. So whether solutions are considered on city-wide large-scale, in the context of small communities, or even within each individual home and building, the first pioneers are crafting new energy efficient solutions, as well as promoting a whole new way of thinking. These steps may seem small and insignificant on their own, but by implementing many small steps at once, we can recapture and reuse a huge amount of energy that would otherwise be wasted heating our atmosphere. The pressures of increasing global populations and climate change require this new mindset to provide solutions at strategic and tactical levels. http://zypho.eu

ENERGY MANAGER MAGAZINE • JUNE 2018

OPINION

BREADING A HOLISTIC APPROACH Andy Clarke

often hear people talking about “taking a holistic approach to energy management or sustainability”. I interpret that as looking at the whole problem rather than just dealing with a symptom. So rather than install a heater because of a cold area, you would improve insulation, control ventilation or even relocate people to warmer areas – thereby not making the environmental impact worse. That agrees with my personal

They invested in an expensive heat recovery system (£130k – which was a substantial sum at that time) which recovered the waste heat from the ovens and used it to provide space heating for the bakery and the offices. They were however left with a small load which needed to be supplied to allow the steam boilers to be completely decommissioned. It was necessary for the baking trays which carried the loaves through the oven to be cleaned after

Philosophy and in fact the Waste Hierarchy where the first element is “Reduce” or in the more recent version “Prevention” and elimination of the use of a resource should be the first option.

each use to remove any bread that was adhering to them. The hot-water that was needed was easily provided from the steam system and really didn’t have much effect on the overall load.

Similarly a specialist outsourcer may be able to be more efficient in resource utilisation than in-house resources but a detailed understanding and the ability to understand the whole picture is of great value wherever that capability can be found.

However, with the steam boilers out of service they had no source of hot water available, so they considered the options.

One example I frequently refer to relates to my time with British Gas at Leicester. One of my customers was a large bakery producing thousands of loaves every day. Their primary gas usage was for their production ovens.

I on behalf of British Gas quoted them for an appropriate gas boiler, my equivalent from the East Midlands Electricity Board quoted them for an electric device, the supplier of the heat exchangers on the ovens quoted them for a way to source the hot water from the waste heat still available, and others quoted other ways of heating

sufficient water to hot wash the trays. The Works Engineer however considered the problem in an unbiased, dispassionate, objectively holistic fashion. He consulted the manufacturers of the detergent used to assist the cleaning of the trays and obtained from them a product designed to work with COLD water. A test proved that it was as effective as their original detergent. He therefore saved the capital cost of hot water generating plant and any operating costs. A holistic approach indeed and one we should definitely replicate as it achieved the objective with a minimum of fuss and cost – both financial and environmental. For more information contact: andycenergy@gmail.com

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THE ONLY PUBLIC SECTOR ENERGY JOURNAL

ENERGY MANAGEMENT

ENERGY COST RISES: MITIGATING THE RISKS

Already faced with tight budgets, it’s essential for public sector organisations to have an energy procurement strategy in place that will help them mitigate the risk of price increases. The recent spike in the price of oil, and the knock-on effect it had on gas and electricity costs, was another reminder of just how volatile, and difficult to manage, commodity energy costs can be. Matt Osborne, principal risk manager at energy consultancy Inenco, discusses the drivers behind the recent rises, and provides some procurement advice.

il prices have been on the rise for some time. They have jumped over 60 per cent in the last year alone, due to a rise in demand and restricted supply by the Organization of the Petroleum Exporting Countries (OPEC), and in May this year, spiked to over $80 a barrel for the first time in almost four years, largely a result of a US decision on the Iran nuclear deal. Iran is the third largest oil producer in OPEC1, and President Trump’s decision to withdraw the US from the Iran nuclear deal and reintroduce sanctions against Iranian oil exports had a significant impact on oil prices – as has the news that Iran is threatening to re-start its nuclear programme in response to President Trump’s actions. Meanwhile, the economic and political crisis in Venezuela, which has the largest proven oil reserves in the world2, has caused its oil output to decline to its lowest levels in decades. Another factor behind the steep rise in the cost of oil is the start of the US ‘driving season’. The US accounts for about 10 per cent of global gasoline demand3, and during the spring and summer, when people take to their cars for holidays, the demand for oil increases. Indeed, EIA data reports a 2.2 million barrel drawdown in US stockpiles in the w/c May 7 2018, which is a larger fall than the 0.2m barrels forecast, and the 2018 summer driving looks to be one of the most expensive since 20144. Spikes in the price of oil feed straight into gas and electricity prices – following the surge in oil prices in May this year we saw winter 2018 prices reaching 60.65pptherm and £58.40/MW respectively. However, other factors affect gas and electricity prices too. For example, we currently have limited gas storage capacity in the UK because of the closure of the Rough facility. Meanwhile, gas storage facilities in Europe are at a 10-year low for this time of year and reduced production from Groningen (Europe’s largest gas field) over the next few years will also tighten supply. There are also summer maintenance schedules to contend with, which restrict supply, and unplanned outages make the task of restocking storage facilities much harder. The UK’s limited gas storage capacity makes us particularly

vulnerable when we experience cold spells, as demonstrated during the ‘Beast from the East’ at the end of February 2018 and the associated gas deficit warning, which sent intraday gas prices to 300p/th. Winter 2018 could potentially be very volatile again, especially if storage facilities are not refilled in time. Meanwhile, maintenance at the Hunterston nuclear reactor uncovered cracks in the reactor core, resulting in it being taken off the grid for six months, and the LNG schedule remains light. The Pound has continued to fall, following poor GDP figures and ongoing concerns over Brexit negotiations, increasing the relative cost of fuel imports. Rises in energy prices are difficult for any organisation to manage, but the public sector has very limited budgets, and in recent years has had to withstand severe spending cuts. In addition, the sector has sizeable energy costs; the annual energy bill across all public sector buildings in England and Wales is estimated to be around £2 billion5. It’s therefore essential for public sector organisations to have an appropriate procurement strategy in place to manage and mitigate the risk of rising energy costs. This can help to save organisations significant amounts of money on their energy bills – in turn releasing funds for frontline services. In a bullish market, where prices keep going up and up, it is risky to wait and see what happens, as it’s likely that energy will ultimately cost more. With higher energy costs on the horizon, we hedged our clients some time ago – advising them to secure their energy prices in advance. Taking action now and fixing energy prices can mitigate the risks, but it’s important to have some flexibility too, in case the market changes. While the majority of indicators suggest the curve will continue to rise during the short to medium term, wholesale energy costs are affected by many unpredictable factors, so the opposite could happen. In fact, some signs suggest that the price of oil could soften. Several events may influence this further – for example, if the other signatories to the Iran nuclear deal remain committed, the Iranian supply could remain in the global marketplace. We

also have to consider that US production continues to outstrip increases in demand, and, where gas storage is concerned, we are seeing record summer flows from Russia into Europe, which are helping continental storage facilities re-stock ahead of winter. There could also be a significant increase of Russian gas into Europe following the opening of the Nord Stream 2 pipeline in 2019. Working with an energy consultancy that offers flexible energy procurement – where there is an opportunity to purchase in advance if necessary, yet still be able to re-expose (unlock) volume back to the market to repurchase at a lower price should the outlook change at a later date – is therefore key. The strategy taken will normally depend on the organisation’s appetite for risk and budget certainty, but an experienced consultancy will take these factors into consideration and will recommend an approach that best meets the agreed objectives. Energy prices have strengthened significantly recently, and, bearing in mind the continued instability surrounding Iran and Venezuela, and the issues we are facing with low gas storage stocks, there is plenty of opportunity for them to continue to rise. Our advice is to take out, or extend, contracts now to protect against any further volatility, but to ensure they offer flexibility. It is also essential for organisations to manage their non-commodity costs, which are also on the rise. In fact, we recently carried out some research that revealed that UK organisations combined can expect to have paid an extra £7.42 billion on their energy costs by 2019 if energy management strategies aren’t implemented. Organisations can use our interactive Non-Commodity Cost Dashboard to calculate their exposure to incremental non-commodity costs over the coming years. www.inenco.com 1 https://www.reuters.com/article/us-india-oil/indiasays-too-early-to-predict-sanctions-impact-on-iranimports-idUSKCN1ID0C2 2 www.bbc.co.uk/news/world-latin-america-36319877 3 http://www.poten.com/u-s-driving-seasonality 4 www.foxnews.com/us/2018/04/30/get-ready-formost-expensive-driving-season-in-years.html 5 Taken from the Clean Growth Strategy

ENERGY MANAGER MAGAZINE • JUNE 2018

ENERGY PROCUREMENT

NHS CAN SPEND LESS ON ENERGY AND MORE ON PEOPLE

A government greenhouse gas emissions survey of the public estate in 2010, found many of the country’s hospitals were amongst the worst offenders. Things have improved since then, with healthcare estates recognising that reducing energy consumption not only cuts emissions related to energy use, but reduces fuel costs – perhaps allowing funds to be diverted to healthcare and staffing. However, according to Jan Ponsford, Director at Virtus Consult, specialists in energy reduction strategies, there is still a lot that can be done.

educing energy consumption starts with understanding what energy is being used, what is being wasted and where the savings are most easily made. This is no time for guesswork or making obvious assumptions, but undertaking detailed evaluations across an entire estate. It is easy for everyone to get behind a single big idea, like a large photo-voltaic array or a waste to energy project, but it is much harder for facilities managers to ‘sell’ the idea to senior management teams that many small changes will deliver significant savings. Investing in new thermostatic radiator valves or installing new low-energy pumps in the air-conditioning is unlikely to attract a huge amount of attention or interest. But it’s time to recognise that the small changes Facilities Managers can make, rather than one big headline grabbing change are the way ahead. To reduce energy consumption, which happily cuts energy spend and carbon emissions, it is important to consider the more basics steps possible to improve the energy efficiency of existing, often old buildings.

COMPREHENSIVE EVALUATION IS KEY The evaluation of an organisation’s estate needs to be detailed, consider every aspect of the energy efficiency equation and call on every source of information

from half-hourly electricity bills to waste management policies. To establish a baseline, any evaluation also has to consider the facility’s energy spend and carbon emissions from, mechanical and electrical activities, buildings, infrastructure, land, waste, transport and workforce. A good evaluation will typically focus on three distinct areas: Power usage - the site survey will consider metering and sub-metering, often by department in healthcare facilities, where there can be a huge disparity in usage. It is important to monitor and benchmark performance, comparing the in-use performance of a building to its historical energy use or the energy use characteristics of similar healthcare facilities. Initiatives – this is less strategic and more tactical, looking at heat recovery, use of renewables if relevant, including energy from waste, lighting systems, electrical equipment, voltage optimisation and improvements to the fabric of the building and surrounding environs. Operational – the survey should consider the energy use awareness of the staff, the lifecycle maintenance, waste reduction strategies, procurement services, transport and ultimately the culture of the organisation – is

ENERGY MANAGER MAGAZINE • JUNE 2018

there a desire to cut consumption and is everyone on board? Once it has been established who in the organisation has the day-to-day responsibility for energy consumption, purchasing and wastage, along with operational activities, the assessment can look in detail at the policies in place and the base line information needed to make recommendations.

BASELINE INFORMATION AND KNOWLEDGE TRANSFER As expected the information needed starts with the buildings, their age, construction and condition, their occupancy profile and the plans to re-develop if appropriate. A thorough inspection of the building fabric and its thermal properties, along with rooves, windows, doors, flooring etc., forms an important step of the final evaluation. If no asset register is available for the mechanical and electrical systems, a thorough review of heating, ventilation, cooling and lighting systems is essential. The temperature and humidity set points (and whether they change throughout the year), in different locations across the estate will be critical to the overall consumption picture and will help highlight potential changes.

FROM DESIGN TO REALITY We hear about the design of low energy buildings, but when these buildings are built and occupied, there is a gap between the predicted performance and the actual energy consumed. Published in 2013 by CIBSE, TM54: Evaluating Operational Energy Performance of Buildings at the Design Stage, provides clear guidance on how to evaluate operational energy use more fully at the design stage. One key consideration is accurate estimating of the operating hours and occupancy pattern of the building, which is unique in the case of healthcare facilities. It sets out how the operational energy can be estimated and covers lighting, heating, ventilation and cooling, along with the provision of hot water.

ENERGY PROCUREMENT Crucially, it also asks designers to consider the consumption profile of lifts and escalators, small power loads, catering, server rooms and other plant and equipment, which can often be overlooked with current calculating methods. The UK has huge talent in designing buildings to achieve PassivHaus and Breeam certification, but there remain basic improvements possible on older buildings that will consistently deliver greater energy efficiency and relatively short pay-back periods. There is more to the energy efficiency story on healthcare estates than just capital projects and new buildings.

ANNUAL SAVINGS, PAYBACK AND FUNDING The problem for many hospital management teams and their facilities managers is the investment required to make the necessary changes against the estimated pay back time. When more money is required for clinical activities, spending on energy reduction can become piecemeal and ineffective. Even a typical small Trust estate is capable of reducing energy consumption by as much 18%, with a reduction in energy spend as high as 24%. A comprehensive evaluation combined with a committed implementation plan using the right specialist contractors ensures it is possible to achieve guaranteed savings and payback periods of under 5 years. This not only cuts consumption and reduces carbon emissions, but saves millions of pounds over the period, which can be better invested in improvements to medical facilities and patient care. How energy efficiency and carbon reduction improvements will be funded is the real stumbling block for NHS Energy Managers and Facilities Managers; not what changes need to be made. Funding options are assessed on a project specific basis, considering building type, usage, location, Trust requirements and preferences. The energy saving measures being considered will also impact the potential funding solutions. The options usually fall into a number of categories, with the simplest perhaps the Trust capital funding the improvements. Borrowing directly from the Green Investment Bank or SALIX, which offers interest and fee free loans, are popular choices, with energycost savings used to pay the loan. Salix requires NHS programmes to payback within 5 years and less than £120 per tonne of CO2 over the lifetime of the project. Salix funding

covers over 100 energy efficient technologies including boilers, combined heat and power, LED and lighting upgrades, and heat recovery. Financing the improvements is possible through a third-parties, which could include ‘off-balance sheet’ options like an Energy Services Company (ESCo) agreement, a Short Term Operating Reserve (STOR) arrangement, a Special Purchase Vehicles or Programme Partnership Arrangements. For Trust managers it is all about building the Business Case for the whole project, considering: • Procurement and Application process with indicative timescales • Compliant initiatives • Levels of funding (initiatives attract differing levels of funding) • Risks • Interest levels • Payback periods • Any restrictions on using different types of financing together • Potential contractual or legal issues • Any significant dates such as when a particular fund closes Experience dictates that the best funding solution is the one that presents the least risk for all stakeholders, whilst providing the best value. It also has to meet the Trusts’ needs and satisfy legal and statutory requirements.

IMPLEMENTATION FOLLOWS EVALUATION Starting with the evaluation and the baseline information, the process to implementation of the various simple changes will typically take 6-9 months. Once the business case has been made, a tender process will follow to select the contractors experienced in delivering similar projects and guaranteeing the predicted savings and payback period.

Ideally, the project will be managed by the consultants that initially undertook the evaluation, as they will understand the organisation’s objectives, economic drivers, operational structure, existing knowledge and experience – all beneficial to the successful delivery of the project. Energy efficiency projects within the healthcare sector, rarely have an end point as a lot of monitoring and verification is required to ensure targets are hit. In the fight to cut energy consumption, continual improvement through new and more affordable technologies is crucial.

EXPERIENCE IS CRITICAL TO OUTCOMES Hospitals are complex buildings with unique energy requirements. They are occupied every minute of the day, by a lot of people, many of whom are unwell and potentially at risk from poor environmental conditions. This situation requires control of the buildings’ thermal environment and indoor air quality, especially those spaces used for treatment and convalescence, which can require large amounts of energy. The value lies in balancing the time taken for the expected savings to cover the initial expenditure on implementing the changes. This requires a more nuanced and experienced approach, but the savings can be immediate and significant. Virtus Consult is an award-winning multi-disciplinary construction and management consultancy, formed in 2006. It provides project, cost, construction and energy related consultancy services to a range of clients, of all shapes and sizes, operating within all sectors of industry and commerce. www.virtus-consult.co.uk

ENERGY MANAGER MAGAZINE • JUNE 2018

MONITORING & METERING

IPMVP EFFICIENCY VERIFICATION

educing or optimising energy consumption is part of the sustainable development approach which many industrial countries, particularly in Europe, signed up to in the Kyoto Protocol. The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change, which commits its Parties by setting internationally binding emission reduction targets. This agreement has led to gradual but constant strengthening of regulations with the aim of reducing CO2 emissions. Julian Grant, General Manager for Chauvin Arnoux UK, looks at the current trends regarding energy saving, presents the International Performance Measurement and Verification Protocol (IPMVP), and discusses measurement solutions for checking energy performance. The continuous rise in electricity prices in recent years illustrates a significant, widespread trend: higher energy prices in Europe are placing a growing burden on the budgets of European industrial companies. Several studies have clearly shown the recent and foreseeable upward trend of companies’ electricity bills, and so there has never been a better time to look at methods for dealing with this situation. A recent survey of European companies’ energy costs has shown that, although they benefited from relatively stable energy prices throughout the 1990s, recent years, and particularly the last decade or so, have seen a change in this situation. Worldwide demand for oil, the main fossil energy source consumed, has risen steadily, and at the same time political instability in several oil-producing countries has caused the base price of fossil fuels to rise. This price rise has increased energy bills for industry, and therefore business in general, as well as consumers. Rising energy costs are now directly affecting the prices of manufactured goods, as industrial companies are rarely able to absorb them, and even then, only partially. With higher costs now affecting profits, businesses are taking a new look at energy efficiency and many are trying to reduce the cost of utility services by upgrading their equipment or changing their operating procedures. Experts warn that, even though their intentions are good, the benefits may only be temporary unless appropriate maintenance is performed. Although several companies’ first reactions were to see whether they could

buy their energy more cheaply or even produce it themselves, the best solutions to this problem, despite the cost involved, remains in overhauling their installations and adapting certain types of consumption by following simple principles which are now well known and widely implemented.

ENERGY EFFICIENCY Whatever the sector of activity, whether industrial, tertiary, infrastructure or local government, energy efficiency is becoming a major issue. The need to remain competitive, the necessity for ever increasing profits, continuously rising energy prices, and the current economic constraints, all mean that reducing and/ or optimising energy spending is now a major concern for everyone. In industry, for example, it has been shown that significant savings are possible with the eradication of inefficient equipment and unnecessary “out of hours” usage, and this may represent between 20 and 46% of current energy consumption, depending on the issues. Measurement is the essential function for all energy efficiency projects in order to seek to control and optimise or reduce energy costs. Consuming less, and more efficiently, necessarily means surveying existing installations. This involves comprehensive measurement of all the parameters needed to detect potential savings and propose initial areas for improvement. As defined in the ISO 50001 international standard, the key is to “establish, implement, maintain and improve an energy management system, whose purpose is to enable an organisation to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, energy security, energy use and consumption. The standard aims to help organisations continually reduce their energy use, and therefore their energy costs and their greenhouse gas emissions”. In the current economic climate, with energy costs expected to continue rising, taking steps to reduce energy bills is not an easy task. However, since September 2012, Europe has included the principle of significant energy consumption reductions in its official policy on energy saving. Within this it will force energy companies to invest 1.5 % of their annual energy sales revenues every year in services enabling their customers to reduce their consumption.

ENERGY MANAGER MAGAZINE • JUNE 2018

INTERNATIONAL PERFORMANCE MEASUREMENT AND VERIFICATION PROTOCOL (IPMVP) The IPMVP is part of an approach for controlling, optimising, or reducing energy costs by measuring technical and economic performance. The IPMVP is not a standard but a “framework document describing shared best practices for measuring, calculating, and monitoring the savings achieved in the context of energy efficiency projects”. It defines the methodology for defining a standardised procedure for auditing, measurement and verification of energy performance. Internationally, it is now the most widely-used framework. A written “Measurement and Verification Plan” will ensure repeatability of the measurement campaigns so that the results of the analysis are reliable, comparable and repeatable. This is an essential tool for any energy efficiency project and involves drafting a complete procedure, establishing the points to be checked in order to ensure that the solutions implemented are effective. In the context of energy efficiency projects, an exhaustive approach is crucial. All the parameters which may have a significant influence on energy savings have to be measured. The measurement of a site must therefore be considered as a whole. In this way, the energy budgets can be managed precisely and the actions specified in the Measurement and Verification Plan will gain credibility. The definition of the content of the reports, and the precision of the performance measurement methodology, are crucial features for establishing the credibility of the Measurement and Verification Plan and for ensuring that it is accepted by all the people involved. The precision of the measurements, the equipment used for monitoring, and the test procedures, all contribute to assessing the gains in order to calculate the return on investment. The Measurement and Verification Plan thus encourages investors to finance the project and the data from the

MONITORING & METERING

reference measurement campaigns must be kept for this reason. The data used to draft the Measurement and Verification Plan must be clearly identified in a document, along with their locations and dates. This can then be used to justify the action undertaken in relation to the initial goals of the project. All these elements (parameters to be measured, reference units, data formats, type and content of the analysis, etc.) must be recorded in order to confirm the relevance of the project. There are 4 phases in the IPMVP methodology.

PHASE 1: DEFINE REQUIREMENTS AND MAKE MEASUREMENTS It is crucial to start by producing a historical, comparative analysis of consumption. The first step in this approach involves analysing the different bills from the electricity suppliers. But these bills will only concern the total consumption of the industrial site. Alongside this, there is a need to detail the consumption and allocate it across the various electricity users connected to the installation (factory, workshop, production line, building, offices, etc.). The data must be recorded over a period which is genuinely representative of consumption on the site. • Real-time monitoring of consumption • Predictive maintenance, overshooting of subscribed power threshold • Creation and printing of balance sheets, reports, graphs and summaries

PHASE 2: PLAN AND IMPLEMENT SOLUTIONS On the basis of the measurements performed, an investment plan must be developed which includes suitable solutions to be implemented and, once again, measured. The proposals

for improvements to the installation will then be put into practice. The most frequent measures taken involve modifying the type of lighting, changing the command systems of electric motors, replacing some electric motors with more efficient models, and switching systems off when they are not in use. These are just a few examples concerning electrical equipment, but for energy saving, all consumption (heating/cooling, compressed air, gas, etc.) is monitored and may be need to be modified. It is important to remember that fighting waste is not the only way to achieve energy savings but should be accompanied by the implementation of the least energyhungry solutions for any given situation.

PHASE 3: MEASURE AND VERIFY IMPROVEMENTS A measurement campaign is then performed to ensure that the expected savings are genuinely achieved. This measurement of the technical and economic performance of the action undertaken should be compared directly with the initial objectives.

PHASE 4: ONGOING PERIODIC TESTING Once this has been established, a procedure must be set up for periodic testing (every 6 or 12 months). The tests must be exhaustive and must measure all the components of the electrical distribution network: • Lighting network • General single-phase distribution network • Three-phase distribution network • Distribution via uninterruptible power supplies • Standby generator set • Any internal electricity production

ENERGY LOGGERS Clearly then measurement is the foundation for optimising an installations

energy efficiency, supervising electrical networks, and allocating the costs fairly. Measurement is therefore a crucial component of the diagnostics, the testing, and the progress plan. It guarantees effective, long-term energy efficiency. Driven by this need to measure and record electrical usage there are now a variety of Power and Energy Loggers available. They not only represent a response to the growing need for electricity metering, providing an easy-to-install, portable solution for professional customers, but by necessity these instruments are simple to use and allow measurement, recording and analyse all the important energy data. They are compatible with most types of networks currently in use. Modern loggers measure on three voltage inputs and three current inputs and record the power values (in W, VAr & VA) and energy data (kWh, kVAh and kVArh). At the same time, they calculate and record the power factor, the cosϕ, the crest factor and the frequency. They also provide information on the harmonics (THD) present on the network, depending on the selection made by the user. All the data is stored within the Energy Logger, preferably on a removable media like SD memory cards, but users can also recover the data via USB, Bluetooth or Ethernet connections. The choice of networked communication makes it possible to remotely contact several loggers simultaneously, that have been temporarily installed throughout the facility. The associated software can then retrieve the data and display the required trend curves. In conclusion, reducing or optimising energy efficiency is not only necessary for a variety of reasons, some legal and some moral, but it is also increasingly financially prudent to do so. Energy costs will continue to rise for the foreseeable future, but the knowledge, guidance and tools to achieve the necessary savings to mitigate this are all readily available. www.chauvin-arnoux.co.uk

ENERGY MANAGER MAGAZINE • JUNE 2018

MONITORING & METERING

AXIS INDUSTRIES QALCOSONIC ULTRASONIC HEAT METERS

ntroducing the Axis Industries Qalcosonic range of ultrasonic heat and cooling meters. The Qalcosonic Heat 1 and 2 are MID Class 2 Approved for Domestic Renewable Heat Incentive (RHI) and billing purposes - for use in heating, cooling and hybrid applications. Available in meter sizes from DN15 to DN50, with BSP threaded and flanged connections. Qp values range from 0.6 to 15 m3/hr, with R100 dynamic range as standard (R250 optional). The use of ultrasonic technology means the meter has no mechanical moving parts, prolonging the life of the meter and ensuring long term flow measurement accuracy. The Heat 1 and 2 cover a wide range of energy metering applications, from residential buildings to larger companies and institutions. The meter benefits from pulse outputs and a range of optional communication modules; including MBus, Modbus, LON and RF868 (Wireless MBus). This makes it ideal for AMR applications and linking with existing management systems. The Qalcosonic Heat boasts IP67 rated protection on the flow sensor, which is standard when purchased with the cooling application option and also with glycol applications. The Qalcosonic stores the energy readings for both heating and cooling in separate displays, automatically switching

when the temperatures change. Along with the energy readings, the meter is able to log hourly, daily and monthly values. This is extremely useful for monthly billing applications and monitoring of historical data. The standard meter model is battery powered, with a 3.6V lithium battery. The promised battery life of 12 years minimum ensures that little maintenance is required. There are also options available for power modules for 12-42 V DC or 12-36 V AC - using the battery power as a back-up. Qalcosonic heat meters offer a choice of mounting for the calculator display. It can be mounted on the flow sensor - but if access to the meter is difficult, the display can simply be unclipped and mounted on a wall, DIN rail or on a panel. 1.5 meters of cable from both the

flow sensor and temperature sensors is included as standard for the DN15 and DN20 sizes. For the larger models, 3 meters of cable is included. There is further option to choose cable lengths of up to 5 meters. Horizontal and vertical installations are possible, and there are no requirements for straight runs before or after the meter. Direct immersion pocket sensors are available for all sizes within the Qalcosonic range. For the smaller 1520mm models, one of the temperature sensors is mounted in the meter body - removing a portion of installation cost. For more information on the Qalcosonic range, please visit the website www.bellflowsystems.co.uk or contact the Bell Flow Systems Sales Team at sales@bellflowsystems.co.uk

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ENERGY MANAGER MAGAZINE â&#x20AC;˘ JUNE 2018

THE ONLY PUBLIC SECTOR ENERGY JOURNAL

LIGHTING

GOODLIGHT LED LIGHTING OPTIMISES PR WORKING ENVIRONMENT

oodlight, a leading LED lighting brand, have announced that Neesham Public Relations, a B2B technology PR agency, has replaced the outdated fluorescent tubes at its offices in Buckinghamshire with long life, energy efficient Eco LED Ceiling Panels from the Goodlight range. With energy consumption halved, payback following installation is likely to be achieved within three years, and maintenance costs eliminated. Commenting, Peter van der Sluijs, Managing Director at Neesham said, “We were keen to adopt LED lighting, not only for the substantial reduction in energy costs and carbon footprint, but also to provide a better working environment for our staff. We chose Goodlight LED lighting based on the positive reviews from many satisfied customers. Installation was straightforward and the new Goodlight Eco LED Ceiling Panels were fitted in less than a day. Each panel took less than 30 minutes to install and it took me that long to change one fluorescent tube!” Goodlight supplied Neesham with ultra-thin, 600mm square Eco LED Ceiling Panels that draw just 40W and have a colour temperature of 4000K (natural). They are designed to slot easily into an existing ceiling grid and

offer beautiful, even illumination without glare or flicker. “The difference in the light quality of the new LED lighting compared to the old fluorescent tubes is astounding,” added Peter van der Sluijs. “Not only do they emit a cleaner, brighter light throughout the office space but aesthetically, they blend in seamlessly with our existing ceiling tiles. We have received very positive feedback from our staff since they were installed.” Commenting on the success of the project, Saima Shafi, Marketing Director, Goodlight said, “We are delighted to support Neesham with their conversion to LED lighting. Our Eco LED Ceiling Panels are specifically designed for retrofit applications and provide immediate energy savings up to 70%. They are guaranteed for five years and rated at 50,000 hours.”

ABOUT LED ECO LIGHTS LED Eco Lights was founded in 2006 and celebrates 12 years as an awardwinning LED lighting manufacturer. Its Goodlight™ LED lamps and luminaires provides a comprehensive range of LED solutions for commercial, industrial, amenity, leisure and hospitality environments. LED Eco Lights offers a team of technical experts, to guide customers through every stage of the

upgrade process, including lighting design services, funding solutions and installation. LED Eco Lights also offers its Bright Goods range of vintage-style decorative LED filament bulbs. www.goodlight.co.uk

ENERGY MANAGER MAGAZINE • JUNE 2018

LIGHTING

THE SMART SWITCH TO CONNECTED LIGHTING

ncandescent lighting consumes 75% more energy than their LED alternatives and with 39% of a commercial property’s electricity consumed by lighting1, the switch from incandescent to LED remains a vital business decision. Although this change over is not necessarily a new development, LEDs still only make up 10 percent of lighting systems2. In light of regulatory deadlines which aim to increase the sustainability of buildings and cities closing in, it is becoming a must for all businesses across the EU. Under the existing Energy Performance of Buildings Directive, all new buildings must be virtually zero-energy by 31 December 2020; public buildings by 31 December 2018. Meeting regulatory guidelines can be seen as a burden, but the benefits 1. 2.

Christian Schraft, CEO, Sylvania of being compliant include reaping energy savings which positively impact the bottom line. However, legislation is a continuously changing process. Businesses must be aware of, and actively keep on top of, developments to stay compliant in a cost efficient fashion.

GOING BEYOND LIGHTING At a time when energy bills are rising, more efficient lighting has a direct and positive effect on day-to-day operational costs. Lighting is considered the number one way to improve a building’s energy efficiency and can be developed to support existing initiatives including the WELL Building Standard, of which 13 of its 100 features relate

specifically to lighting. It is the easiest and least disruptive part of a building’s infrastructure to upgrade, and typically delivers the quickest payback. It also provides the option to incorporate smart sensor technology, enabling building owners, operators and facilities managers to go beyond lighting and collect and utilise valuable data. It’s time to rethink the role lighting plays in your business. Smart lighting and controls can monitor elements such as building occupancy and footfall, machine functionality, room temperature and energy usage. In turn, this data can be analysed to enable business owners and facilities managers to adapt systems like office lighting, cooling and heating for improved occupancy comfort, or

https://www.energy.gov/energysaver/save-electricity-and-fuel/lighting-choices-save-you-money/led-lighting http://theinstitute.ieee.org/technology-topics/power-and-energy/how-led-systems-will-drastically-improve-energy-efficiency

ENERGY MANAGER MAGAZINE • JUNE 2018

LIGHTING

illumination. This can help businesses optimise footfall and increase sales, or improve use of space and reduce pick-up times. All of which can significantly help to reduce operational costs. Therefore, lighting decisions should be informed by the wider commercial drivers of a business. Whatever the focus, like-forlike replacement lamps and fixtures is very rarely the best solution, even if it is the one that provides the least hassle. Establishing how much energy your lighting consumes, if it is optimised for energy efficiency and its true cost to your business, are all vital before you embark on a lighting upgrade or a refit. Therefore an energy audit of your environment is essential to ensure that you specify customised, business-focused solutions that are fit-for-purpose. With a best in class supplier the audit should be free, making it an obvious place to start.

SMART FINANCE FOR A SMART SWITCHOVER The perception of upgrading to smart LED lighting with integrated sensor technology is that it is expensive, and for some, financially unobtainable. This is because the initial capital expenditure required to implement it can be steep. However, there are other ways to finance an upgrade. For example, highly competitive financing models now exist which enable you to pay an off the balance sheet, manageable, monthly rate.

One such approach is lighting-as-a-service (LaaS), the third party management of a new long-life, highly efficient lighting system. A proportion of the money saved on reduced energy bills will cover a monthly repayment comprising everything from supply to installation, as well as management to commissioning. With more and more customers seeking the convenience of a third party in managing all aspects of their lighting systems, the LaaS model is fast gaining traction, helping businesses to unleash the value proposition of LED technology without any capital outlay. LaaS also solves the issue of missing out on the latest improvements to LED. This is because there are many options that include the price to upgrade to new technology as and when desired, in the monthly fee. This avenue is making the move to connected LED lighting, the obvious choice.

FACILITATING A SMARTER FUTURE Yes, cash flows are tight. Yes, capital expenditure is under increased scrutiny.

But, the 1st September 2018 halogen phase out and the continued drive of the Energy Performance of Buildings Directive mean that now is the time to rethink the role lighting plays in your business. With smart financing options increasingly available to facility managers and building operators, now is the time to reap the benefits of the very latest in LED with integrated sensor technology. www.sylvania.com

ENERGY MANAGER MAGAZINE • JUNE 2018

LIGHTING

GET SMART LIGHTING THE PATHWAY TO INSIGHT AND CONTROL Darren Riva, Northern European Zumtobel Group Services Director

e hear a lot about ‘smart’ technology at the moment – smart TVs and smart fridges in the home, extending to smart buildings and even smart cities. But what does ‘smart’ really mean? Too often, the terminology is used to simply mean web connected or app operated. But for connected devices and solutions to really be smart, they must be able to deliver insight and control back to the user.

SMART LIGHTING

As a conduit for connectivity and data, lighting has one major advantage – it is everywhere that people are. LED lighting can act as a platform to deliver a wide variety of intelligent applications and improved functionality. Whilst this presents businesses with myriad options it also demands a change of mindset. Business leaders must recognise the emergence of lighting provision as an essential element of business strategy rather than a legacy service. Lighting should not be a static, ‘once and done’ solution. Numerous factors affect the requirement for light on any given day –the time of day, the type of business being conducted, and more. Flexible, intelligent lighting is providing

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businesses with the tailored solutions that they crave and even shaping how our cities function and evolve. Today’s lighting decisions are not solely about light provision but also about the type and frequency of data that is captured and how that data might then improve business performance. Solutions must have the flexibility and ease of control to adapt to changing room, building or city needs.

CAPTURE INTELLIGENCE Intelligent systems can sense when space is occupied, providing invaluable data on building usage, footfall, and under-occupied space. Indeed, this intelligence has moved beyond the boundaries of the office or work environment to now be used city-wide

LIGHTING by authorities across the globe. Street lighting is capturing data on pollution, traffic-flow, sound levels and more, and sensors trigger lighting in side-streets and cycle paths to provide a safer, more welcoming environment for citizens. Distinct and tailored lighting solutions exist to control lighting at room, floor, building and city level. These are non-proprietary, openarchitecture solutions, designed to work with existing IT platforms and to allow scalability. The onus is on decision-makers to understand current needs but to also project forward so that lighting installed today can deliver insight and value for years to come. Often, such expertise will not exist in-house. As lighting solutions become evermore sophisticated, so the value of third-party expert consultancy grows. The importance of the right lighting cannot be overplayed. We worked with a nursing home in Vienna to establish the correct light levels and colour temperature. Colour temperature has a proven effect on mood, and by adjusting its lighting the nursing home has reported an increase in the level of sociability between residents and a decrease in the amount of drugs issued. Significant results.

THE LIGHTING AS A SERVICE MODEL The days of businesses being held to ransom over legacy lighting service contracts are over. Lighting as a service moves lighting provision to a true partnership where the

performance of the lighting solution is managed by experts over its lifetime. A lighting as a service model protects customers from any loss in asset value because the basis of the service is not about simply selling luminaries but about guaranteeing future lighting performance. So, such a service enables customers to benefit from LED technology – and from future developments - without the hassle of owning and maintaining the lighting solution themselves. The future-proofing advantages of lighting as a service are critical. Without such a model in place, every new technological advancement would require significant capital expenditure. Lighting as a service provides buyers with the necessary consultative expertise to enable them to stay a step ahead.

SMART FUTURE Today’s sophisticated controls and systems are taking lighting beyond illumination towards data capture and business insight. A tailored, optimised lighting system can have a significant impact – not only on an organisation’s bottom line but also on employee performance and business intelligence. This is why leading businesses across many sectors are partnering with lighting specialists in order to create environments that are safe, efficient and geared towards productivity and optimal employee performance. The smart buyers are those that use lighting strategically to deliver tangible business benefits now, and ongoing strategic advances well into the future. www.zumtobel.com

NEW PHILIPS ECOPRO LAMP RANGE Powerful and versatile LED work lights

umileds is delighted to launch the new Philips EcoPro range of LED work lights. Equipped with highquality LEDs and hands-free features, the EcoPro range also provides the powerful bright light (6,500 K) needed to get the job done, making the lamps perfect for everyday use in automotive workshops. The Philips EcoPro50 provides a portable and powerful rechargeable projector lamp, which lights up large dark areas when working on vehicles. The EcoPro50 is highly durable, with its long-lasting battery providing up to six hours of continuous use. Delivering up to 1,000 lumen (10W) in boost mode, it gives off a super wide beam of consistently bright light. If more battery life is required, simply switch to a 500 lumen (5W) Eco mode, there is also a battery

life indicator that shows exactly how long before a recharge is necessary. The Philips EcoPro50 also comes with a magnetic mounting accessory. Attach it to the handle to be able to mount the projector on any metal surface, ideal for use in a garage or in the engine compartment. Tested in 3-meter drop tests, the work lamp is proven to survive a drop from height, it is also resistant to water. The Philips EcoPro40 provides a powerful bright light. It has a non-slip grip, and it is lightweight and versatile, making it an ideal work lamp for everyday use. With a powerful main beam of up to 300 lumen (3W), it lights up those hard-to-see details. The EcoPro40 is also fitted with a handy spotlight on the top of the lamp, delivering up to 100 lumen

(1W), so mechanics can see even into the narrow dark corners of the vehicle – such as deep inside an engine or into larger spare parts. Once fully charged, the Philips EcoPro40 delivers bright white light from its main beam for up to three hours. If using the spotlight only, the battery will last up to eight hours in continuous use. To find out more: www.philips.com/automotive

ENERGY MANAGER MAGAZINE • JUNE 2018

LIGHTING

BE SMART WITH YOUR LIGHTING Holger Engelbrecht, product manager, reichelt elektronik.

nergy resources are being put under greater strain as towns and cities become more populated. Coupled with the focus now placed on living sustainable, energy-efficient lives, homeowners and businesses are seeking cost-effective ways to reduce their energy consumption. One key way of doing this choosing smarter lighting solutions – it can be as simple as changing your light bulb.

MAKE THE LED SWITCH IN HOMES LED light bulbs consume less energy than traditional bulbs and can be a viable solution to keep those costs to a minimum. There is a demand for this type of lighting in the UK and energy savings are more important to Brits than design or price when it comes to buying LED lights. A third rank energy savings as the most important factor, with just 17 per cent saying they are influenced by price, highlighting a shift in consumer attitude towards energy costs. Energy savings are of greater concern than luminosity (21 per cent) and colour (9 per cent)*. Furthermore, energy efficiency is the most important factor for a quarter of Brits when buying any light, as consumers seek the long-term cost savings on offer versus conventional bulbs. Efficiency is of particular concern to over 35s, with 37 per cent of over 55s saying it influences their choice of lighting.

IN THE WORKPLACE Offices and businesses can also reap the benefits of switching their lighting to LED. Not only do they produce bright and unadulterated white light, they are also flexible to use. Their energy efficiency makes them ideal for small and medium businesses who may need dozens of lights in their offices. When properly implemented, energy savings of between 50-80 per cent can be achieved. This is a significant saving especially in these challenging, uncertain times for businesses with Brexit details still to

be confirmed and the weak pound. However, many companies are still hesitant to switch to the more energy-efficient and long-term costeffective option of LED lighting. The biggest barriers for businesses against making the switch cited include: 1. Expensive price point 2. Concern over lighting temperature 3. The benefits of switching aren’t clear 4. It’s too much effort This highlights a lack of understanding of the benefits of LED lighting versus conventional bulbs. Whilst LED lighting has historically been more expensive, technology advancements have made bulbs much more affordable. In addition, the long-term cost savings vastly outweigh the upfront costs. Companies need to start considering and installing alternate options to achieve any sustainable energy targets.

BARRIERS FOR BRITS However there still seems to be plenty of uncertainty about choosing LED bulbs over traditional bulbs. 17 per cent of UK households have completely switched to LED lights but that is still a small proportion, especially considering the EU halogen bulb ban that is due to be enforced in September this year, and despite the evident environmental and energy saving benefits that can be achieved. So what’s holding people back from making the switch? Pricing remains the biggest barrier, cited as a reason by 27 per cent in the UK. Electrical retailers must address this need quickly to cater for the new demand for affordable, energy efficient lighting and those customers who now seek the long-term cost savings on offer versus conventional bulbs.

DON’T UNDERESTIMATE COST SAVINGS But it’s not just homeowners, companies are also hesitant to switch

* r eichelt LED lighting research, conducted by OnePoll, 2017 ** r eichelt Smart Office research, conducted by OnePoll, 2018

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to LED lighting because of high pricing, despite the long-term cost savings vastly outweighing the upfront costs. In fact, LED bulbs consume 80 per cent less electricity than incandescent bulbs, drastically cutting electricity bills. Companies that are currently using lighting in offices spaces believe they are saving as much as 21-30 per cent since switching from conventional lighting. This is in stark contrast to the perception that only 6-10 per cent can be knocked off current energy bills, and some organisations who expect no savings at all.

SMART SAVINGS Let’s not forget the rise of smart lighting either. Whilst smart technology is taking off in homes, there has been a slower uptake in businesses seeing the value of investing, highlighting how smart technology in the workplace are misunderstood or not valued, with over 50 per cent saying they will not be investing in the next 12 months. But these businesses that are yet to upgrade their systems are missing out on the efficiency and cost saving benefits. Of the companies that do use smart tech, 74 per cent chose to do so to save electricity, ultimately reducing costs in the long term. Many that have already invested are most commonly using smart technology for smart lighting. One of the main reasons for choosing to implement smart technology is to save electricity and reduce long term costs**. A secondary reason for installing smart solutions was to improve safety for employees. Having sufficient lighting for employees to be able to safely carry out their work is incredibly important, as well as providing a secure environment. This is where smart lighting that can be automatically controlled and tailored to improve wellbeing and smart security systems add value. To make the significant energy savings through lighting solutions, LED and smart lighting options must be considered. Waiting too long or failing to adapt and integrate prolongs the expense. www.reichelt.com

LIGHTING

SMART LIGHTING MARKET VALUE TO HIT $24BN BY 2024

ccording to a new research report by Global Market Insights, Inc. â&#x20AC;&#x153;Smart Lighting Market is predicted to be valued USD 24 billion by 2024.â&#x20AC;? The smart lighting market growth is attributed to worldwide initiatives for smart city development and the growing popularity of home and building automation systems in residential, commercial, and industrial sectors. As the modernized smart city infrastructure offers intelligent connectivity among different components of the administrative framework such as transport, healthcare, and law & order, further initiatives for developing smart cities are likely to be undertaken aggressively around the world over the next one decade. Smart lighting products are used in different applications to enable highly connected and energy-efficient lighting solutions. These applications include commercial, residential, industrial, and outdoor lighting applications such dynamic traffic management systems employed in public places, highways & roadways, tunnels, and bridges. Developing economies can largely benefit by deploying smart lighting systems for the outdoor lighting applications to ensure energy security and sustainability. The communication technology market is expected to exhibit excellent growth between 2018 and 2024 due to rapid advancements in wireless communication technologies such as LPWAN, Wi-Fi, and hybrid technologies. With the increasing popularity of highly interconnected IoT-based smart city ecosystem, these technologies are expected to play a critical role in enabling such intelligent and data-driven infrastructure. In the light control market, sensors are expected to exhibit the fastest adoption over the forecast period. This accelerated adoption can be attributed to technological advancements in different types of sensors, such as occupancy sensors and motion sensors, which enhance the ability of

smart lighting systems to effectively react to the surrounding conditions. Also, as these sensors enable remote operability of lighting systems through mobile devices, their utility in connected lighting solutions is likely to increase substantially over the forecast timeline. With the rapid adoption of LED bulbs to replace traditionally used incandescent lighting systems, the LED market is projected to exhibit accelerated growth with a CAGR of over 20% between 2018 and 2024. As LED light bulbs enable significant cost savings (more than 50%) compared to traditional bulbs, their adoption in smart lighting systems is expected to grow exponentially over the forecast timeline. The outdoor lighting market is projected to register a fast growth over the forecast period due to the increasing popularity of intelligent street lighting systems in the smart city infrastructure. With embedded sensors and digital networks, these systems collect and transmit information that helps city administrators to monitor and respond to any circumstances related to air quality, traffic levels, and noise levels on the streets. Also, by intelligently controlling the operating period of lights, substantial cost savings can be realized by minimizing the energy wastage. Europe is projected to hold a dominant position in the market by 2024 with a market share over 30%. This market dominance is attributed to growing emphasis on developing smart city infrastructure in the region and the large-sale installation of smart lighting system across the commercial and residential sectors. The European Union (EU) is consistently focusing on developing highly connected smart city infrastructure across the region while encouraging participation from public and private stakeholders. Through its funding instrument, The European Innovation Partnership on Smart Cities and Communities (EIP-SCC), brings together industry and citizens to enhance the urban life using more sustainable and integrated solutions.

Smart Lighting Market Size, By Light Controls, 2017 & 2024 (USD Million)

The Asia Pacific smart lighting market is projected to witness the fastest growth between 2018 and 2024 due to growing awareness among emerging economies including India, Japan, and Singapore regarding the efficacy of connected lighting systems in enabling significant cost savings through optimal energy consumption. The companies operating in the smart lighting market are consistently involved in new product development initiatives and product innovation activities. For instance, in January 2018, the company announced that it is previewing two new products to this portfolio that are expected to be launched later in 2018, a smart light switch and a ceiling light. These products can control smart assistants including Alexa and Google Assistant and will have a built-in hub, which lets them control other C by GE products as well. Similarly, in April 2017, Philips Lighting launched the Philips InterAct Office connected lighting system aimed at the global office lighting systems market. The solution allows building managers to reduce energy consumption by nearly 70% and optimize operations. Some of the key payers operating in the market are, Bridgelux, Cree, Digital Lumens, Echelon, Schneider Electric, Acuity Brands, Honeywell, GE Lighting, Secil, Cooper Industries (Eaton), OSRAM, Lutron, Hubbell, Philips Lighting, Silver Spring Networks, Legrand, Tvilight, and Zumtobel. Source: https://www.gminsights.com/industryanalysis/smart-lighting-market

ENERGY MANAGER MAGAZINE â&#x20AC;˘ JUNE 2018

CHP

CHP – AN ENERGYEFFICIENT SOLUTION TO GROWING COST CONCERNS Combined Heat and Power (CHP) can be an ideal solution for site owners, operators and other building services’ professionals looking to make cost savings and improve energy efficiencies. Thanks to reduced whole-life costs and an array of financial incentives, businesses can realise significant benefits by adopting this pioneering technology, says Nigel Thompson, Sales Manager – Gas Power Solutions at Finning UK and Ireland.

HP solutions generate electricity while capturing and using the wasted heat from conventional power plant process. By adopting this technology, which is sometimes known as cogeneration, CHP plants can achieve efficiencies up to 80 per cent. For point of comparison, coal and gas-fired plants rarely exceed efficiencies of 40 per cent1. This marked difference in efficiency translates into reduced energy costs for CHP plants over other fossil fuelusing options. Consequently, CHP plant owners and operators can experience marked reductions in energy costs, an area which usually constitutes a sizeable portion of overall spend. These savings are felt most keenly at larger facilities with substantial energy demands, which will be able to recoup any investment in a shorter period of time. Indeed, even smaller sites can probably expect to be turning a profit on their system within three years of installation2.

GOVERNMENT SUPPORT Aside from energy savings, a number of outside factors can make CHP systems

an even more attractive investment. Chief among these is the growing concern and awareness surrounding enviromnmental issues such as carbon emissions, and the need to find ‘greener’ energy sources. CHP fits this profile – although it still produces carbon dioxide, the efficiencies created by CHP-using plants reduces the amount of fuel required to keep processes running. As a result, plant owners and operators using CHP will see their emissions cut by, on average, a minimum of 10 per cent and potentially by as much as 60 per cent3. With the benefit of a high-quality and secure energy source system on site, a plant’s dependence on the national grid for power is also dramatically reduced. Taking this into account, various countries have set up CHP support schemes to reduce carbon use and pollution. In the UK, the government has “committed to increasing the UK’s CHP capacity because of the considerable environmental, economic and social benefits it can bring together with its contribution to security of supply.” This has translated into a large array of new offers, initiatives and mechanisms being made available to

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CHP-using companies that significantly reduce their financial obligations to the government. These schemes include the Carbon Price Support Tax Exemption, the Climate Change Levy Exemption, and preferential business rates. Furthermore, the Government’s Enhanced Capital Allowance scheme also allows businesses to write-off their investment in CHP systems against their taxable profits. However, these incentives are only available to companies using CHP systems that have been ceritified ‘Good Quality’ by the CHP Quality Assurance program (CHPQA). To be applicable for the certification, a CHP system must be able to produce an electrical efficiency of 20 per cent. Only CHP systems that reach this criteria and demonstrate significant savings in comparison to conventional energy-generating systems are able to enjoy the reduced-cost benefits offered by the UK government. This exclusivity makes it even more crucial to invest in a highquality, reliable system that fulfills the CHPQA’s criteria (full guidance of which is available at https://www.gov.uk/ guidance/chpqa-guidance-notes). Taking full advantage of these can boost the cost effectiveness of investing

CHP

in a system, enhancing savings generated and further reducing payback time. As such, it is clear that purchasing a highquality CHP unit can have a fundamental impact on financial performance in the long-term, and owners and operators should prioritise total cost of ownership over the initial purchase price.

WHOLE-LIFE SAVINGS Even mid-sized CHP systems cost several hundred thousand pounds, with the price extending to seven figures for larger sites. With this in mind it is vital that businesses identify solutions appropriate to their needs. Choosing cheaper and ill-suited systems may seem attractive due to their lower upfront cost, but they could prove a costly burden in the long-term. Assuming a standard 20-year lifespan, a system’s maintenance costs alone will likely be larger than the initial outlay, while fuel represents as much as 75 per cent of the overall spend. So when investing in a CHP system, it is crucial that owners and operators look beyond short-term costs and look at the investment over the course of its lifetime. An appropriate CHP system will ultimately pay for itself, whereas a less-suited, lower-quality system may require further expensive maintenance 1.

Combined Heat and Power, Department for Business, Energy & Industrial Strategy. https://www.gov.uk/guidance/combinedheat-and-power CHP Finance, Department of Energy and Climate Change https://www.gov.uk/ government/uploads/system/uploads/

and repair costs to compensate for reduced performance and reliability. Furthermore, when taking account of fluctuating energy prices and the growing focus on ‘greener’ fuel sources and the environment, CHP is increasingly being identified as a reliable and sensible solution. Indeed, it is already being used at 383 industrial sites across the UK, generating a significant portion of the energy used in the sector4.

attachment_data/ le/345190/Part_5_ CHP__Finance.pdf Digest of United Kingdom Energy Statistics (DUKES) 2016, Department for Business, Energy & Industrial Strategy https://www.gov.uk/government/statistics/ digest-of-united-kingdom-energy-statistics-

OPERATIONS AND MAINTENANCE It is highly recommended to invest in an operations and maintenance (O&M) contract when purchasing a CHP system. When doing so, investors should priotise trusted partners who take a bespoke approach to each site, and have a strong, reliable track record. For more information on Finning and CHP technology, please visit www.finning.com.

dukes-2016-main-chapters-and-annexes Digest of United Kingdom Energy Statistics (DUKES) 2016, Department for Business, Energy & Industrial Strategy https://www.gov.uk/government/statistics/ digest-of-united-kingdom-energy-statisticsdukes-2016-main-chapters-and-annexes

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DISTRICT HEATING

HOW TO CHOOSE AND RUN BOILERS TO OPTIMISE ENERGY EFFICIENCY IN HEAT NETWORKS The UK has committed to an 80% reduction of carbon emissions compared to the 1990 baseline by 2050. To achieve this, the Government has set fiveyearly carbon budgets. Stuart Turner, National Sales Manager at Hamworthy Heating.

he UK has made significant progress on carbon emissions which have fallen by 42% from 1990 to 2016. Interestingly, we have also seen energy demand growth break away from growth in GDP (energy demand usually increases with GDP). Although the Climate Change Committee (CCC) which monitors the emissions, praises the progress, also warned the UK is currently not set to meet the fourth (2023-27) and fifth (2028-32) carbon budget. The Clean Growth Strategy published last year was acknowledged as a good start. However, the CCC called for the policies and proposals set out in the Strategy to be firmed up and additional measures to be identified to close gaps between the carbon budgets. The Clean Growth Strategy outlines heat networks as one of the core initiatives to reduce carbon emissions in the heating sector. In this article, weâ&#x20AC;&#x2122;re looking at how modular boilers and correct setup can help

to provide a highly energy-efficient solution alongside CHP units to achieve heat network efficiency targets.

BACKING UP THE HEAT SUPPLY A popular choice in heat networks are Combined Heat and Power (CHP) plants. A CHP unit will be running continuously to meet the base load heating requirements which, due to colder temperatures, are high in winter and lower in the summer. To provide a backup to the CHP, compact modular boilers present an energy

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efficient solution to cover the baseload present all year. Furthermore, they deliver top up heat to effectively meet shoulder demand (spring and autumn) and peak demands in winter while saving valuable space in the plant room. Continuous product development over the last few decades has made it possible to achieve an output of 1MW from less than 1 square metre of floor space with modular boiler systems. Good news for cities, as it effectively reduces the room a boiler is taking up which can

DISTRICT HEATING be used for other purposes (more flats or buildings). Compared to larger high output (and high water content) boilers which used to deliver this kind of output, compact modular boilers benefit from a low water content and hence a quicker heat up time. Due to multiple boilers being used, a continuous heat supply is also ensured should one module break down or be serviced.

CONSIDERING COSTS, SPACE AND ENVIRONMENTAL IMPACT OF HEATING EQUIPMENT With prices in parts of London, such as e. g. the West End reaching £1,075 per m² of floor space per year for a rented office, compact heating equipment working alongside a CHP is almost a necessity. Smaller plant rooms have become common in bigger cities, calling for flexible heating solutions with high output requirements. It is however not just the footprint but also the flexibility and efficiency that benefit buildings equipped with modular boilers. Access can be an issue, often the only route to the plant room is through tight stairways and narrow doorways. One of the benefits is that every boiler module can be a separate boiler installed alongside another in a horizontal arrangement, or as a vertical stack. This means a flexible arrangement is possible even in city centre plant rooms. They can be stacked on top of, or next to each other. To address access issues, boiler modules are easily separable and can be moved to the place of use. Compared to larger high output boilers, the use of a crane or other expensive equipment to get the boiler into a building may not be necessary, reducing the cost even further. This may also remove the need for road closures, another win for city centres.

HOW DO MULTIPLE BOILER ARRANGEMENTS ACHIEVE HIGH EFFICIENCIES? Several boiler modules have the advantage of working at lower loads together compared to a large output boiler working at full load on its own In multiple boiler arrangements, the boilers can be set to operate in different modes. In unison control, the controller attempts to hold as many boiler modules firing at the same time to match the base load of the building. The aim of this setting is to have them all modulate to more efficient low fire

together to match the system load which offers higher operating efficiencies and hence lower CO2 emissions. When set to cascade control, the controller attempts to match the base load with as few boiler modules as possible. This means the next boiler module is switched on once the previous reaches 100% of its capacity. The controller alternates operation of the boilers to ensure even use which helps the long-term reliability of the system.

WIDE DIFFERENTIAL TEMPERATURES AND BOILER SIZE EVOLUTION In the case of condensing boilers, operating temperature and return temperature then come into play. Condensing boilers are most efficient when they ‘are able to’ condense. That’s why it is even more important to have a wide temperature differential with low return temperature to ensure it is operating in condensing mode (e. g. 70/40°C). This follows the CIBSE Guidance AM12 – Combined Heat and Power for Buildings recommendation of a minimum of 30°C differential temperature (delta T) for efficient district heating network design. Some modern modular boilers can achieve differential temperatures of up to 40°C. This means maximised condensing operation going hand in hand with savings in energy and costs, whilst being compact enough to fit through a single doorway. A higher operating temperature to compensate for heat losses in combination with a wide temperature differential and

low return temperature achieves better condensing performance and is recommended by CIBSE/ADE CP1 Heat Networks: Code of Practice for the UK. A system could then run at 90°C with a return temperature of 50°C to condense most efficiently – given the modular boiler’s maximum operating temperature is 90°C with a delta T of 40°C. Thanks to product improvements, the formation of thermal NOx can also be decreased significantly. This means NOx emissions as low as below 40 mg/ kWh help to achieve maximum BREEAM credits while reducing the impact of heating equipment on air quality.

A MODULAR ENERGY- AND SPACE-SAVING SOLUTION FOR HEAT NETWORKS Thanks to their ability to operate at more favourable lower load conditions, high operating, wide differential and low return temperatures, modular boilers present a highly energy-efficient and reliable solution to support CHP plants in heat networks. They can overcome access issues in city centre plant rooms, owing to their flexible stacking options and compact size. A small footprint in terms of floor space effectively reduces the space needed for heating equipment. Lastly, low NOx emissions alleviate the negative impact on air quality and reduced CO2 emissions help achieve the Government’s aims as set out in the Clean Growth Strategy and carbon budgets. www.hamworthy-heating.com

ENERGY MANAGER MAGAZINE • JUNE 2018

RENEWABLE ENERGY

UK BEACON FOR COMMUNITY ENERGY SWITCHED ON BY LORD HENLEY A ground-breaking community energy scheme, which enables residents to generate, store and use solar electricity, has been switched on in Nottingham.

niversity of Nottingham-led, the green energy initiative is situated at Trent Basin, a 250-acre brownfield re-development of 500 low-carbon homes under construction on the edge of the city centre. The research project boasts the largest community energy battery of its type in Europe, which is supplied by Tesla. It can store 2.1 MWh of energy, delivering 500kW of power, which could boil 167 electric kettles simultaneously for more than four hours. An ‘urban solar farm’ onsite, comprising 700 photo-voltaic panels, generates renewable power for the community battery to store until required. Each PV panel is specially designed for eventual installation on residents’ roofs once later phases of homes are built. The battery and solar farm were switched on by the Rt. Hon Lord Henley, Parliamentary Under Secretary of State at the Department for Business, Energy and Industrial Strategy on Friday June 1. Additionally, an innovative Community Energy Company has been set using ground-breaking business models to manage the energy assets and provide energy services to its residents which includes storing and selling locallygenerated energy to the grid at peak times. Profits made by the ESCO will help to cut energy bills for residents who opt in to join the scheme and vote on its direction and share its benefits. A unique collaboration between the renewable energy industry and academia, the Trent Basin community energy project is headed up by the academic lead Professor Mark Gillott, from the Faculty

of Engineering, University of Nottingham. Professor Gillott also runs the Creative Energy Homes; a sevenhouse living test site on University Park campus, investigating energy-efficient technology use in homes and smart grid – heat network applications. The community energy scheme at Trent Basin has been directly informed by the research undertaken at the Creative Energy Homes. This latest initiative goes one step further, however, offering eco-conscious residents the unique chance to be part of a live study in a new-build housing development. Trent Basin researchers have programmed and installed interactive smart technologies around the homes to help users make informed choices about their energy consumption. These include voice-activated Amazon Eco Spots with on screen messages to give real-time updates on electricity use and helpful suggestions on greener energy settings. The research team has also co-developed a 3D interactive map of the Trent Basin development available on an app for residents. Live energy data on individual properties can be viewed and compared to their Trent Basin neighbours and benchmarked against the national average. Although in its early days, the project is capable of yielding large data sets on consumer behaviour regarding energy use. The researchers hope their findings

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will inform an innovative business model that can be rolled out nationally to increase the take up of community energy schemes across the UK. Professor Gillott commented: “We need a mind shift away from personalised household energy generation, storage and use, to larger local community energy schemes that provide greater efficiencies and cost savings. Our aim is to make this technology commercially-viable in order to increase the adoption rate and help revolutionise the UK energy sector.” The Trent Basin community energy initiative benefits from £6m investment through two Innovate UK funded programmes – the Energy Research Accelerator (ERA) and Project SCENe (Sustainable Community Energy Networks). A consortium of partners has come together to deliver the scheme, including the developers Blueprint, AT Kearney, Smartklub, Siemens, URBED, Slam Jam, Sticky World, Loughborough University, Solar Ready, with support from Nottingham City Council. For details of the Community Energy scheme at Trent Basin, visit www.projectscene.uk and for further information about the Energy Research Accelerator, visit www.era.ac.uk To find out more about the houses and flats at Trent Basin, and the wider development plans, visit www.trentbasin.co.uk

RENEWABLE ENERGY

LIGHTWEIGHT SOLAR HAS THE POWER TO TRANSFORM SOCIETY Extending the reach of affordable solar energy will have both environmental and societal benefits says Dr. Geoff J. Nesbitt, CEO, Verditek

lean technology is more than just a ‘greenwash’ that some have accused the e-tech and energy industries of posturing behind in a bid to appear more environmentally conscious and consumer friendly. Generating and using clean energy can have a real positive environmental impact and emerging costeffective innovations in clean technology mean a greater influence can be made on both environmental and societal levels. While the likes of Amazon, Apple and Google’s parent company Alphabet have made tremendous commitments to reduce their carbon footprints, the move towards cleaner energy creation and consumption shouldn’t be viewed as an elite crusade that only the world’s biggest brands have the capital and resource to join. While these behemoth organisations are leading by example and setting greener standards, it’s still possible to make a tangible impact through smaller, more affordable gestures. It’s not just businesses that have the opportunity to affordably invest in clean energy – governments should also consider emerging affordable clean energy solutions that can have positive environmental, social and economic impacts.

INDUSTRIAL, ENVIRONMENTAL AND ECONOMIC IMPACTS Solar isn’t a new technology but recent developments in lightweight, flexible and interconnectible photovoltaic (PV) modules, that are approximately half the weight of standard modules, have

made the generation of solar energy viable in places where the application has not traditionally been possible. Take the Middle East, where there are hundreds of thousands of expansive industrial sheds with rooftops that are designed to keep the elements out but cannot support the weight of traditional PV modules. In many cases, these warehouses do not have reliable power supplies and have their own diesel generation facilities (DG) to provide support when power from the grid slips. Lightweight PV modules can be fitted to these rooftops without any additional structural support required. Typically, the power from the solar modules is routed through a SMART meter that manages the load required for the building, selling to the grid, or sending to storage when the building power demand is low or prices high. Work is currently underway to deliver a lightweight solar installation in Dubai where a single warehouse rooftop will be generating up to 300 kWp from solar power. This single warehouse is surrounded by several hundred other identical structures in the industrial estate, providing a huge opportunity to reduce burden on the grid. Another comparable example can be found in mining camps and construction camps associated with oil/gas reservoirs. These natural resources are often located many hundreds of kilometres from the nearest port or logistical infrastructure and typically house several thousand staff. The conventional solution to power requirements is to transport huge volumes of diesel fuel to generate all their power requirements. Since these sites are so isolated the diesel must be hauled long distances on remote roads. Combined with the fact that diesel fuel has many different uses, it is prone to being stolen on route, or siphoned off by entrepreneurs. Taking these factors into account, the overall energy costs can be enormous. Traditional solar hasn’t been a viable option for powering these camps. The weight of the modules has made them costly to transport and their rigid frames and glass plates made them vulnerable to damage in transport or if moved or repurposed. Lightweight modules

manufactured in an appropriate polymer laminate are robust and amenable to transport. Once in place, these modules reduce, and potentially remove the reliance on fossil fuel to power these camps which can be operational for tens’ of years. The owner has the advantage of a robust operation by increasing the energy mix at the camp and there is a huge opportunity to make a dramatic reduction in the carbon footprint. Here in Europe, industrial electricity is particularly costly and can be a 15-20 percent burden on a business’ cashflow, yet these lightweight modules will pay for themselves within three to five years and have a lifespan of 20 years. Rather than running their entire energy needs off largescale utility suppliers, companies will be able to shift towards a more distributed approach in the coming years. This will allow them to generate power from their own resources, ensure they have the power when they need it, and ultimately reduce their cost of operation. As a side benefit, they will have a positive impact on the environment and can win bragging rights with the kids at home.

SOCIETAL BENEFITS IN LIGHTWEIGHT SOLAR Lightweight solar can have a significant societal impact where it is needed most. In subSaharan Africa, failing or absent infrastructure means cities, and in particular rural towns and villages,are susceptible to brownouts. This has a deeper impact than general quality of life; that of access to education. Without reliable light, children cannot read or study in the evening, the business book-keeping cannot be completed after a hard day’s work. No homework is done without reliable electricity supply and literacy rates flatline as children are denied the opportunity to prepare for their future. Simply covering a roof with lightweight solar modules and connecting a single battery element will ensure children are given a better future through the guaranteed ability to study. It is a recognised fact that education is the ticket out of poverty, and reliable power, preferably power that relies on renewable resources, enables that opportunity. When combined with the efforts of large companies such as Google to deliver reliable internet to the developing world, lightweight solar will become a vital part of the worldwide transformation in societies, industries, economies and the environment. verditek.com

ENERGY MANAGER MAGAZINE • JUNE 2018

RENEWABLE ENERGY

THREE CHALLENGES FOR RENEWABLE ENERGY Energy sector investments in big data technologies have exploded. In fact, according to a study by BDO, the industry’s expenditure on this technology in 2017 has increased by ten times compared to the previous year, with the firm attributing much of this growth to the need for improved management of renewables. Here, Alan Binning, Regional Sales Manager at smart grid software provider COPA-DATA UK, explores three common issues for renewables — managing demand, combining distributed systems and reporting.

enewables are set to be the fastestgrowing source of electrical energy generation in the next five years. However, this diversification of energy sources creates a challenge for existing infrastructure and systems. One of the most notable changes is the switch from reliable to fluctuating power.

IMPLEMENTING ENERGY STORAGE Traditional fossil-fuel plants operate at a pre-mitigated level, they provide a consistent and predictable amount of electricity. Renewables, on the other hand, are a much more unreliable source. For example, energy output from a solar farm can drop without warning due to clouds obscuring sunlight from the panels. Similarly, wind speeds cannot be reliably forecasted. To prepare for this fluctuation in advance, research and investment into energy storage systems are on the rise. For example, wind power ramp events are a major challenge. Therefore, developing energy storage mechanisms is essential. The grid may not always be able to absorb excess wind power created by an unexpected windspeed increase. Ramp control applications allow the turbine to store this extra power in the battery instead. When combined with reliable live data, these systems can develop informed models for intelligent distribution. Britain has recently become home to one of the largest energy storage projects to use EV batteries. While it is not the firsttime car batteries have been used for renewable power, the Pen y Cymoedd wind farm in Wales has connected a total of 500 BMW i3 batteries to store excess power.

COMBINING DISTRIBUTED SYSTEMS Control software is the obvious solution to better monitor this fluctuating source of power. However, many renewable energy generation sites, like solar PV and wind farms, are distributed across

a wide geographical scope and are therefore more difficult to manage without sophisticated software. Consider offshore wind farms as an example. The world’s soon-to-belargest offshore wind farm is currently under construction 74.5 miles off the Yorkshire coastline. To accurately manage these vast generation sites, the data from each asset needs to be combined into a singular entity. This software should be able to combine many items of distributed equipment, whether that’s an entire wind park or several different forms of renewable energy sources, into one system to provide a complete visualisation of the grid. Operators could go one step further, by overlaying geographical information systems (GIS) data into the software. This could provide a map-style view of renewable energy parks or even the entire generation asset base, allowing operators to zoom on the map to reveal greater levels of detail. This provides a full, functional map enabling organisations to make better informed decisions.

REPORTING ON RENEWABLES Controlling and monitoring renewable energy is the first step to better grid management. However, it is what energy companies do with the data generated from this equipment that will truly provide value. This is where reporting is necessary. Software for renewable energy should be able to visualise data in an understandable manner so that operators can see the types of data they truly care about. For example, wind farm owners tend to be investors

ENERGY MANAGER MAGAZINE • JUNE 2018

and therefore generating profit is a key consideration. In this instance, the report should compare the output of a turbine and its associated profit to better inform the operator of its financial performance. Using intelligent software, like zenon Analyzer, operators can generate a range of reports about any information they would like to assess — and the criteria can differ massively depending on the application and the objectives of the operator. Reporting can range from a basic table of outputs, to a much more sophisticated report that includes the site’s performance against certain key performance indicators (KPIs) and predictive analytics. These reports can be generated from archived or live operational data, allowing long term trends to be recognised as well as being able to react quickly to maximise efficiency of operation. As investments in renewable energy generation continue to increase, the need for big data technologies to manage these sites will also continue to grow. Managing these volatile energy sources is still a relatively new challenge. However, with the correct software to combine the data from these sites and report on their operation, energy companies will reap the rewards of these increasingly popular energy sources. www.copadata.com

DRIVING THE FUTURE

VOLVO TRUCKS BACKS NEW RESEARCH TO TURN OLD DIESEL ENGINES INTO GREEN ENERGY STORAGE MACHINES

pioneering project aims to convert air-polluting diesel engines due for scrap into renewable power storage units that can charge electric bus and lorry fleets. The research is being carried out by the University of Nottingham with support from Volvo Trucks. While diesel engines are still viewed as economical and efficient power sources - particularly for long distance, commercial vehicles – tough emission standards are increasingly forcing older models off the road. “What can be done with endof-life engines is an open question,” said Professor Seamus Garvey, lead investigator for the Faculty of Engineering, University of Nottingham. “One option is to melt them down to recycle the steel, but we propose to explore another possibility – re-task these engines to become machines that compress and expand air to store and release energy. “Power is increasingly being generated from renewable sources that are intermittent by nature – chiefly, the sun and wind. How to store that off-grid energy for use when needed and not just when generated is a pressing issue to solve.” Batteries are highly suited to energy storage where high powers are required over relatively short periods and their place in future cars, buses and vans is already beyond question. However, for absorbing and dispensing steady power over timescales of many hours, different

technologies are better. Compressed Air Energy Storage (CAES) is one leading alternative. Established CAES facilities use underground caverns to store pressurised air. When electricity is needed, that air is heated and expanded in an expansion turbine, driving a generator for power production. Such systems can potentially deliver very lowcost storage, but they depend on finding suitable geological locations and the economics are only good at large scale. The proposition being explored by Volvo Trucks and Nottingham University is to transform existing engine hardware (the engine block, crankshaft, connrods, pistons and crankshaft bearings) into effective reversible compressor/ expander machines, at relatively low cost per unit of power rating. These machines compress air to put energy into storage or expand stored compressed air to release the energy again. One target application for these machines is at charging stations for fleets of electric buses and trucks. “The UK would be very nicely catered for beyond 2030 if we had ~50GW of rated power in energy storage facilities. Each individual truck engine would form the low-pressure stage of

a three-stage 250kW compression/ expansion train. Thus, in theory we could see up to 200,000 truck engines repurposed to drive that level of power.” said Professor Garvey. The work is at a very early stage. Re-manufactured engine hardware from Volvo Trucks is being gifted to the University where engineering researchers will adapt the parts and incorporate them into new compression / expansion machines. The project will run until August 2019. Commenting on the partnership, John Comer, Head of Product Management, at Volvo Trucks, said: “It is always great to be involved with universities, especially in the UK, that are working on research projects that meet the company’s ethos of ‘driving progress’.” The innovative machines will form a part of the “High Performance Compression and Expansion” laboratory at the University of Nottingham which is one key element of a £60m capital project in the Midlands called Energy Research Accelerator (ERA). ERA involves the Universities of Birmingham, Warwick, Nottingham, Leicester, Loughborough and Aston, as well as the British Geological Survey. The University of Nottingham is a leading international centre for energy research and an institution committed to sustainability. The University recently announced it will completely remove any financial investments in fossil fuels within the next 12 months. Volvo Trucks, based in Gothenburg, Sweden have long been seen as innovators in the field of energy conservation and have had ‘care for the environment’ as one of their core values since the 70s. Since then, the emission of air pollutants from their trucks has been reduced by up to 90%. For more information, Professor Seamus Garvey on seamus. garvey@nottingham.ac.uk or Emma Lowry, Media Relations Manager (Engineering), University of Nottingham on 0115 8467156 or emma.lowry@nottingham.ac.uk

ENERGY MANAGER MAGAZINE • JUNE 2018

DRIVING THE FUTURE

GLOBAL ELECTRIC VEHICLE PATENTING TO REACH 7,500 IN 2018

atSnap, the world’s leading provider of research and development (R&D) analytics, has launched its Electric Vehicle (EV) Intellectual Property (IP) Report 2018, which analyses PatSnap’s global dataset related to innovation in EVs. The report found a significant increase in global EV innovation over the past ten years, and predicts that there will be an expected 7,500 patent applications in 2018 – rising to 8,500 in 2020. Looking at the IP data of modern innovators in the EV industry reveals signals about how this market, its players, and their technologies, are evolving. Other findings from the EV report include:

No. of extended patent families

46,246

No. of patent publications

97,606

No. of granted patent families

18,118 - 39.1%

No. of patents pending

8,059 - 17.4%

Application year range

1893-2017

Peak application year

2015 - 4,967 patents

Main company

Hyundai - 4,821 patents

Nearly two thirds of EV patent families have a first-filing in the USA (44%) or China (19%). Based on this activity, China and USA could strategically be key geographic locations for organisations to estab-lish their patent footprint. Excluding filings with the European Patent Office (9.3%), the UK is Europe’s top destination for EV patenting with 2.3% of initial patent filings. Luxembourg and Ireland have the highest relative spe-cialisation in EV innovation globally, meaning that these could be important locations for bargain part-nerships in licensing, open innovation and other opportunities not reflected in patent data. The top five EV patenting companies include: Hyundai, Toyota, Kia Motors, Hitachi and General Motors. Activity has both grown and decreased amongst top

applicants in recent years, suggesting that there is still scope for emerging organisations to establish and maintain leading positions. Experienced automotive companies are remaining diverse in their patenting activity while electronics companies tend to focus on fuel cells, batteries and power transfer technologies. Top technology areas for EV related patents: 1. Electric propulsion with power supplied within the vehicle (14.92%) 2. Manufacturing of secondary cells (9.52%) 3. Arrangements for charging/ depolarising batteries (9.15%) 4. Arrangement of diverse prime movers for propulsion (7.38%) 5. Conjoint control of different vehicle sub-units (6.93%) Looking specifically at unexpected key players in EV innovation, Robert Bosch, Samsung and Sony hold nearly 900 relevant patents between them, meaning that each of these companies hold relevant intangible assets that put them in a strong position to enter the EV market in future. Qualcomm owns the most valuable patent in this area - US20130300358A1

ENERGY MANAGER MAGAZINE • JUNE 2018

- “wireless power transfer for appliances and equipments”- which relates to wireless charging. Due to the far-reaching scope of this technology, this patent is estimated to be worth over $43.4million—up $6 million in estimated value since December 2017. The most litigious organisations and individuals in this area include: American Vehicular Sciences (AVS), Paice, PowerOasis, Ernie Brookins and Inventio. Top litigator AVS appears to be a non-practicing entity (NPE) and holds a substantial patent portfolio relating to automotive technologies. Companies entering closely related areas should take great care to avoid potential infringement situa-tions. This data analysis was performed on 4th April 2018. It should be noted that the publication of patent applications in 2016 and after are expected to increase significantly. It normally takes up to 18 months for applications to be published. Published patent applications are not necessarily granted patents. To read the full PatSnap Electric Vehicle Intellectual Property Report 2018, please go to http://info. patsnap.com/report/electric-vehicleintellectual-property-evip-2018

DRIVING THE FUTURE

ASSET FINANCE CAN BE A DRIVING FORCE FOR UK’S ELECTRIC BUS FLEETS

Brian Foster, Head of Industry Finance at Siemens Financial Services in the UK

everal UK cities are looking to implement smart projects and developments to improve the efficiency of local services, enhance sustainability and develop their competitiveness. Operating hybrid and electric bus fleets is one initiative designed to improve the ‘livability’ of a city, helping to attract business and talent to support economic and business growth. As our cities grow and the pressure on transport networks increases, it is anticipated that the demand for low emission solutions will intensify. New energy-efficient technology for buses has the potential to make an important contribution to meeting air quality targets. According to the European Commission, road traffic is responsible for around 40% of emissions of nitrogen oxides in the EU. Furthermore, around four fifths of nitrogen oxides which come from traffic emanate from diesel-powered vehicles. In London, for example, whilst the city will comply with the 2020 requirements of the ultra-low emission zone (ULEZ) for buses in Central London a year early, by 2019, there remains considerable work to improve the air quality of the city. On Brixton Road, for example, more than 20 hourly readings showing concentrations of toxic nitrogen dioxide (NO2) that exceeded 200 micrograms per cubic metre were recorded within the first week of 2017. Currently, under European law, citizens should not be exposed to such high levels of NO2 more than 18 times in a year. Electric vehicles produce no pollutants at street level and up to 40% less CO2 emissions as a whole compared to similar-sized petrol or diesel vehicles . Upgrading bus fleets therefore has the potential to greatly impact a city’s air quality. Edinburgh City Council has recently been working on a range of projects to

encourage sustainable transport that are already showing promising results. Alongside traffic management and parking systems, the city introduced 65 hybrid buses on a number of routes in December 2014. In 2016, positive statistics from monitoring stations at key locations in the city showed a marked improvement in air quality compared to 2015 with 97% of streets meeting required standards. Investing in such technology, however, requires financial resources that may be beyond the reach of city council public budgets. Councils are facing cuts in central government funding of 6.7% between 2016 and 2020, which comes on top of an overall 30% reduction between 2010 and 2015. Local authorities are therefore looking to other forms of finance to help them invest in new equipment including technology to enable the implementation low emission bus fleets. The reality is that cities need to access a blend of public and private sector finance to accelerate their smart initiatives in a timely way and benefit from the resulting savings, efficiency, quality and citizen service improvements as quickly as possible. A report from Siemens Financial Services (SFS), SmartStart , identifies a number of potential Smart City initiatives – including hybrid and electric bus fleets - that can be financed by using funds from the private sector and have the potential to generate savings that effectively pay for the investment. The report estimates that as much as £5.28

billion could be available in funding from the private sector in the UK for these small-scale initiatives. Many of these projects effectively unlock more finance availability for cities from financiers that intimately understand how such smart city technology applications work and the benefits they produce. Tailored, all-encompassing financing packages tend to be offered by specialist financiers, such as Siemens Financial Services, who have an in-depth understanding of energy-efficient technology and its applications. Specialist finance providers understand the importance of implementing new equipment and new technology to generate revenue and cut operational expenses, and can therefore provide customised financing solutions that deliver energy savings and lower expenses, for instance, flexing the financing period to suit cash flow. This contrasts with the standard financing terms usually available from generalist financiers. Hybrid and electric bus fleets and other small-scale smart city developments can help reduce councils’ carbon emissions, help meet air quality targets and improve people’s health. The budget, however, has to be available and as public funding continues to be cut, many councils are recognising the important role that the specialist private financing can play to help them fulfil their ‘smart’ ambitions. www.siemens.com/ uk/en/home/products/financing.htm

ENERGY MANAGER MAGAZINE • JUNE 2018

DRIVING THE FUTURE

DO LONDONERS DREAM OF ELECTRIC CARS?

here are 12,000 electric vehicles in London, that’s ten times as many as in 2012. But the growth in the number of electric vehicles in the capital is outstripping the number of charge points and this could limit the number of people owning an electric vehicle, at a time when it is essential that Londoners move away from internal combustion engine vehicles. 60 per cent of Londoners do not have their own garage or driveway and would therefore need to rely on electric on-street charging. The London Assembly Environment Committee has published its report on electric vehicles , which calls for a panLondon approach to electric charging points, spearheaded by the Mayor. The report found: • Encouraging Londoners without their own driveway or garage to get an electric vehicle is the biggest challenge for take-up, as concerns about charging points are deep-rooted.

•

The spread, location and accessibility of electric charging points is more important than the number of charging points, so a strategic pan-London approach is needed. • Car clubs are a golden opportunity to both reduce individual ownership and get more electric cars on the road, instead of petrol and diesel combustion engine vehicles. The report recommends the Mayor should: • In the short-term for a limited period only, encourage all London boroughs to make parking for electric vehicles free or discounted, to drive take-up.[4] • Use his profile to spread the idea that charging need not be a barrier to owning an electric vehicle. • Offer TfL capital funding to install electric charging points, where private sector investment is not happening quickly enough. • Set a target for the percentage of electric cars in London’s car clubs,

to ensure car clubs see members sharing the cleanest vehicles. Leonie Cooper AM, former Chair of the Environment Committee, said: “The time is ripe for London to take charge, if we want to future proof this city for an electric car revolution. The Mayor has a key role to play in spearheading the shift to electric vehicles, preferably not individually owned but shared via car clubs. “An electric vehicle is a great option for Londoners in the minority of cases when a journey can’t be done by public transport, walking or cycling. These cars are cleaner, quieter and much better for the environment. What puts people off though, is not knowing whether they will be able to find a charger. “We need to get the number and location of charging points right, as well as raise awareness of charging points in the capital. This infrastructure is essential if London is to continue the electric vehicles revolution.” www.london.gov.uk/

NEW GUIDE URGES LOCAL AUTHORITIES TO APPOINT ‘EV CHAMPION’ TO DRIVE EV DEPLOYMENT

he Renewable Energy Association has launched “Taking Charge: how local authorities can champion electric vehicles,” a guide for Local Authority (LA) officers, councillors, developers, and individuals designed to educate about the taxes and grants available to Local Authorities, and highlight ‘best practice’ in the sector. A number of practical and cost-effective potential actions have been put forward by the REA which can facilitate the deployment of EV infrastructure and encourage vehicle take-up. Such actions include: • Appoint an “EV Champion,” a councillor who can be a main contact point for the public and developers who can help navigate the process of charging infrastructure being developed • Make the ‘Milton Keynes Promise,’ to better inform residents of existing locations, and guarantee that on-street charge points will be installed next to the homes of those who operate an EV • Create a dedicated EV webpage where residents can request charging infrastructure • New ‘Energy Boards’ could investigate ways of saving money by coordinating EV roll-out, switching to renewable energy providers for their properties, a investing in solar and energy-from-waste projects

•

Commit to purchasing EVs as part of the council’s transport fleet, or work with bus service operators to electrify their bus fleet (or have it powered by renewable gas) • Deploy EV charge points on council property, potentially colocated with a solar carport canopy and energy storage system The report is sponsored by Alfa Power, a new entrant into the EV chargepoint development and renewable electricity supply sector, based in Yorkshire. The Taking Charge report can be read online here. http:// www.r-e-a.net/upload/rea_publication_ june_2018_-_taking_charge_-_how_las_can_ champion_electric_vehicles_report_-_f.pdf Commenting on the launch of the guide, Dr Nina Skorupska CBE, Chief Executive at the Renewable Energy Association said: “It is clear that as costs fall and battery ranges improve, the choice to buy an electric car or van will become more commonplace. “While the drivers of this historic shift may be global, the impacts will be local and Local Authorities will be on the front lines. The expectation that a reliable, accessible, and affordable charging infrastructure will be in place is, in the eyes of much of the public, the responsibility of local government. “We hope that this pragmatic action plan can equip all local authorities, even those with constrained budgets, to tackle the challenges and opportunities of electric vehicles head

ENERGY MANAGER MAGAZINE • JUNE 2018

on. Ultimately, the goal is improved air quality, reduced carbon emissions, and reduced running costs for consumers.” Alex Hinchcliffe, Business Development Director at new market entrant Alfa Power (a charge point developer and renewable electricity supplier), said: “Local Authorities have a key role in supporting chargepoint deployment in locations such as schools, supermarkets, and on-street for residents. “We are absolutely delighted that we have been able to develop a complimentary home charging solution and a very affordable smart home charging solution. Both these options are green and the smart charging option will comply with the new government regulations. “We will continue to work tirelessly on an offering that will also make the smart charging option free to the home owner.” Rt Hon Dame Cheryl Gillan MP (Con), Chair of the All-Party Parliamentary Group on Electric and Automated Vehicles said: “We are living through an era of extraordinary change in the transport sector. The Government is advancing legislation and a suite of research and commercialisation projects with the goal of the UK be-coming an international leader in EVs. Developing a charging network is key to achieving this aim. For local authorities, funding is available to develop on-street charging and tax relief in place to help drive EV sales.

PRODUCT SHOWCASE

CARRY ON CARAVANNING Rinnai hot water – instant, continuous, limitless and sensibly economic for every type of commercial site

innai, the UK leader in hot water heating units and systems for all commercial and residential sites, has recently completed yet another installation at a caravan park and holiday multi-activity centre. Rinnai HDC 1500e external unit, fuelled by LPG, was installed at a site in rural Herefordshire as part of regular upgrades on the complex. The hot water was for a very specific function - the Disabled, Laundry and Dog Wash rooms providing, and it needed to supply more than 940lt/hr at times of high demand. The unit has a maximum output of 54kW and weighs just 31kG Due to space and configuration constraints the Rinnai 1500e unit was selected and installed neatly on an external façade and accessorized with a pipe cover box to deter any vandalism and provide weather protection. As this is a pre-manufactured unit, no additional flue or ancillaries required, aside from standard pipe and electrical connections. The installation was easily completed in less than a single day. LPG is increasingly popular for caravan sites as it gives extra flexibility on fuel and very good cost savings for the owners and operators. LPG is one of the cleanest off grid energy sources and as such is the ideal fuel for water heating applications in rural areas that are off-grid. According to Chris Goggin, Rinnai’s Operations Director, Rinnai Infinity continuous flow water heaters combined with LPG gives end users, such as caravan site owners, for example, an unrivalled energy efficient and environmentally friendly solution. And our units are delivered to site LPG-enabled.” Rinnai, the UK’s leading manufacturer of the ErP A-rated Infinity range of continuous flow condensing gas-fired water heaters, supplies the best energy efficient range of low-NOX water heating units currently on the market.

Advanced condensing heat exchangers combined with innovative down firing pre-mix burner technology ensures that every cubic metre of LPG is used to the maximum on HDC 1500e. One of the site concerns was Legionella proliferation, therefore a ‘SMART’ controls for the secondary return DHW systems in the form of an advanced temperature control system which allows for safe running of water at 42°C core temperature during the day and 60°C at a time when the building is closed was used. By the time the building reopens, core temperature is 42°C for safe use. Another Rinnai innovation addresses an age-old industry problem with hot water delivery - lime scale build-up. The company’s integrated scale control system is an innovative solution and comes in the form of an LC (lime check) code on the display of the controller. Almost all water-fed appliances, including plate heat exchangers, boilers and water heaters will accumulate scale deposits when used within hard water areas over time. Lime scale consists of calcium carbonate (calcite) with lesser amounts of other calcium salts such as the sulphate. Sometimes lime scale deposits contain corrosion debris and this scale build-up can affect the water

heaters by reducing their efficiency and overall performance. Ultimately, ongoing use with hard water may shorten the lifespan of conventional water heating appliances and systems. To safeguard against this Rinnai units continually selfmonitor for lime scale deposits around the heat exchanger. If a lime scale build up has being identified, a message is sent to the built-in interface panel on the front of the appliance. The message is displayed as ‘LC’, which alerts the end user that it is time to call a Rinnai service agent to perform a lime scale flush to clear the potentially harmful deposits. This avoids and eliminates the adverse effects associated with lime scale build up, including lower energy efficiencies and rapid product de-generation. Rinnai’s HDC range offers condensing technology with up to 107% gross efficiency, ultra-low-NOX of less than 20 ppm, a widely expansive modulation range of 59.5kW-2.8kW and high flow rates of 37/ltr/min. Add to these benefits are the peace of mind of an extended warranty, a top A-rating exceeding the demands of eco-labelling legislation, the flexibility of external wall mounting and delivery to site with all relevant accessories and the knowledge that the HDC range is futureproofed against future regulatory and legislative changes. www.rinnaiuk.com

ENERGY MANAGER MAGAZINE • JUNE 2018

Reducing water and waste water costs “It’s simple when you have the knowledge”

Water Strategy Water Audit Water Procurement

Centralise billing data Compile a water and waste water database Clean data base Complete a water audit by identifying any historical water company overcharging and undercharging Identify and implement “low hanging fruit” – fixed and none variable charges Water management – Drive down water consumption, benchmark sites, compile high users list Complete site surveys where applicable, compile written report containing recommendations for reducing water costs Implementation of recommendations The Scottish and English water retail markets - procurement of Scottish and English water supply contracts Future water strategy – ongoing monitoring and water bill validation

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Tel: 01924 387 873