Energy Manager Magazine Jan/Feb 2021 by Abbey Publishing

JANUARY/FEBRUARY 2021

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POSSIBILITIES WITH 35 BATTERY TECHNOLOGY INSIDE THIS ISSUE:

Uncovering the truth about inrush currents

Working towards achieve net zero carbon emissions during 2021

A comparison between solar energy and geothermal energy

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FRONT COVER STORY:

Possibilities with battery technology See page 35

JANUARY/FEBRUARY 2021

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ENERGY MANAGER MAGAZINE is published 10 times a year by Energy Manager. www.energymanagermagazine.co.uk 42 Wymington Park, Rushden, Northants, NN10 9JP Tel: 01933 316931 Email: mail@ energymanagermagazine.co.uk REGISTRATION: Qualifying readers receive Energy Manager free of charge. The annual subscription rate is £80 in the UK, £95 for mainland Europe and £115 for the rest of the world. Single copies £10. Some manufacturers and suppliers have made a contribution toward the cost of reproducing some photographs in Energy Manager.

PAPER USED TO PRODUCE THIS MAGAZINE IS SOURCED FROM SUSTAINABLE FORESTS. Please Note: No part of this publication may be reproduced by any means without prior permission from the publishers. The publishers do not accept any responsibility for, or necessarily agree with, any views expressed in articles, letters or supplied advertisements. All contents © Energy Manager Magazine 2021 ISSN 2057-5912 (Print) ISSN 2057-5920 (Online)

INSIDE 4

News

Opinion

Monitoring & Metering

Ventilation

Energy Management

Net Zero

BMS/EMS

Water Management

Energy Supply/Storage

CHP

Renewable Energy

Driving the Future ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

NEWS

THE BUSINESS ENERGY EFFICIENCY PROJECT (BEEP)

EEP supports, County Durham based, small to medium businesses (SMEs) to identify opportunities in making financial savings through energy efficient measures and helping reduce their carbon footprint. Funded by the European Reginal Development Fund and Durham County Council, the Business Energy Efficiency Project launched in 2016. It was due to end in September 2019 however through its success and growth during that time it relaunched in October 2019 and will run to September 2022. So far, the project has supported 350 – (and growing) County Durham SMEs, become more energy efficient

and saving over 2000 tons of carbon emissions, contributing towards the county’s carbon reduction targets. The BEEP team is passionate about supporting SMEs, and this year, having encountered the coronavirus pandemic (Covid19) and the challenges it brought for many businesses, we understand that it is more important than ever now to support in identifying financial savings that can be made through energy efficiency and businesses are not paying more than they should. The project offers a fully funded and tailored energy audit helping identify areas that a business can improve their energy

efficiency, by way of behavourial change or upgrading to more energy efficient equipment.. It also provides a grant fund for qualifying SMEs helping toward purchasing recommended equipment. The support also extends to additional advice around funding opportunities, behavioural measures and can help a business build their own environmental/energy efficiency policy. For more information visit www.beep.uk.net call 03000 265547 or email Beep@durham.gov.uk.

New initiative, EnergyTag, allows energy users to verify the source of their energy every hour EnergyTag, an initiative led by some of the world’s largest players in renewable energy, will help bring greater transparency for energy consumers and accelerate the shift to clean energy.

n independent, non-profit initiative, will enable energy consumers to track the source of their energy and understand their carbon emissions in a totally new way. EnergyTag, which brings together over 60 of some of the biggest names in tech and energy, is developing an industry standard to deliver hourly certificates that show consumers exactly where their energy is coming from, and understand their carbon emissions in real time. EnergyTag brings together leading players including Accenture, Microsoft, Google, Association of Issuing Bodies, CertiQ, EIT InnoEnergy, ECOHZ, Elering, Eneco, Energinet, Energy Web Foundation, ENGIE, Eurelectric, FlexiDAO, Iberdrola, I-REC Standard, M-RETS, OVO Energy,

Ørsted, PwC, RECS International, WattTime, Wind Energy Europe and many others. EnergyTag’s Council and Advisory Board are working together to define a set of guidelines that will form the basis of a market for energy certificates with a timestamp of 1 hour or less. In parallel, the initiative will stimulate the first voluntary markets for the certificates by coordinating a series of demonstrator projects around the world showcasing real-time energy tracking technologies. Dr Toby Ferenczi, EnergyTag’s founder commented: “It’s a cruel irony that the more successful we are at deploying renewable energy the harder it gets to integrate that energy into the grid. Adopting hour-by-hour energy certificates build’s consumer trust by linking production directly to consumption, supports the growth of energy storage, and enables accurate carbon accounting. Our goal is to establish a common, tradable instrument that provides traceability across markets for power, flexibility and carbon. Speeding up the switch to renewables is vital if we are going to keep within the 1.5-degree climate goal.” Phil Moody, who will chair the EnergyTag council and advisory board said: “707 million electricity

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

certificates (707 TWh) were issued in Europe last year involving 26 European countries. This success demonstrates what can be achieved when the industry identifies a need, builds a solution itself and then gets legislative support and regulatory approval once established. Current renewable energy procurement methods match average supply and demand over a 12-month period, but to reach the level of renewables required to meet new climate targets, there has to be some way to track the time of generation, which is why EnergyTag is the critical next step.” Google is one example of a corporate clean energy buyer that has set itself an ambitious goal for 24/7 energy tracking. “Google intends to run on carbonfree energy everywhere, at all times by 2030,” says Michael Terrell, Director of Operations at Google and head of its 24/7 carbon-free energy programme. “EnergyTag will be an important tool for helping Google and many others source carbon-free energy for their operations, at an hourly level. We are excited to be part of the EnergyTag initiative and look forward to supporting the development of this important standard.” EnergyTag works with and within existing electricity certification schemes (such as GOs and RECs) as a voluntary ‘add-on’ and will not replace these schemes. www.energytag.org

More energy is required to keep a room at a constant temperature than to re-heat it after it has cooled. Heat naturally moves to cooler spaces. If the heat input is high, the warmth is constantly dissipating, even in well insulated rooms. Energy loss is slower when a room’s temperature drops. The longer a room remains cooler, the more energy is saved when compared with the energy lost by maintaining a constant higher temperature.

So, why heat a room that no one is in? Our controls are always striving to minimise the use of heat. The 3-stage profile keeps students comfortable while they are in their rooms but, ensures energy isn’t wasted when rooms are empty – making potential savings of 30-40%*.

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NEWS

JOINT EFFORT TO UNLOCK EV CHARGING FOR ALL

ive local authorities are joining forces with the UK’s biggest electricity network operator in a bid to end Electric Vehicle (EV) charging blackspots. Charge Collective, a pilot project being launched by UK Power Networks, will see it partner with local councils in Cambridge, Norwich and London to help ensure nobody is left behind in the EV revolution. The aim is to ensure that everyone has the confidence to switch to EVs, regardless of where they live or what parking space they have. By sharing data and expertise, the local authorities will help UK Power Networks to identify charge point blackspots. The network operator will then hold a competition to incentivise investors to bid at the lowest cost to deliver the priority charge points. Taking such a co-ordinated approach aims to make it more financially viable for charge point operators to create a

wider network of public chargers, so that all communities can achieve the charging infrastructure they need. UK Power Networks will collaborate with Cambridge City and Cambridgeshire County Councils, Norwich City Council, Norfolk County Council and the London Borough of Redbridge. They will work together to identify areas that have yet to install enough electric vehicle chargers and would benefit from improved air quality. These areas are likely to be in towns, with denser populations and less off-street parking. The innovative scheme will also develop a framework to measure the wider environmental and social benefits of better air quality and reduced emissions that come with more people driving EVs. In November last year the UK Government unveiled its Ten Point Plan for a Green Industrial Revolution and enable the

country to meet its target to reduce carbon emissions to Net Zero by 2050. Transport remains the biggest cause of pollution in the UK, accounting for 28% of all greenhouse gas emissions. The pace of EV uptake is accelerating, with 3.6 million EVs forecasted to connect to UK Power Networks’ system by 2030. Charge Collective will help assess how much of a discount to connect to the electricity network is required, to encourage charge point installers to invest in areas where the market is struggling to deliver today. It will be a model that could be scaled up across the country if successful. Local authorities in London, the East and South East of England that would like to find out more about the project can email innovation@ukpowernetworks.co.uk

NEW FUNDING FRAMEWORK ANNOUNCED FOR HEAT NETWORKS TO FACILITATE TRASITION TO NET ZERO BY HELPING PUBLIC BODIES ACCESS PRIVATE CAPITAL Heat delivered by heat networks will require a ten-fold increase in volume if the sector is to fulfil its potential in contributing to the UK’s net zero commitment by 2050 Development of this scale cannot be afforded purely from public funding and up to £22bn of private capital will be needed to if this target is to be achieved The Department for Business, Energy and Industrial Strategy (BEIS) with Triple Point Heat Networks Investment Management – their delivery partner for the £320m Heat Network Investment Project (HNIP) – has announced a new Dynamic Purchasing System (DPS) for heat networks today. The BEIS Heat Investment Vehicle (BHIVE) will allow Public Bodies, including NHS Bodies and Local Authorities, to access funds and funding-related services for heat network projects from a portfolio of potential funders. BHIVE is open to all Public Bodies looking to finance a heat network including, financing the

expansion of a new or existing network or facilitating the sale of part, or all, of an investment in a mature heat network.

The role of private capital in unlocking the potential of heat networks To meet the UK’s legally binding commitment to net zero by 2050 in the most cost-effective manner, heat networks will need to provide 17-24% of the UK’s heat (currently just 2%). Achieving this objective requires the development of a self-sustaining market with a sufficient volume of strategic, low carbon heat networks which are economically attractive without direct Government subsidy. Development at this scale cannot be afforded by public funds alone. The Institute for Public Policy Research has estimated that up to £22 billion of private investment capital needs to be levered in if the sector is to fulfil its potential. At the same time, institutional investors

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

are seeking high class infrastructure assets with good quality counterparties and predictable long-term revenues underpinned by strong environmental, social and governance (ESG) principles.

Prior to BHIVE’s launch, investors and investees had come together too infrequently and only on an ad-hoc basis. Funding Providers can apply to join BHIVE at any time by expressing their interest in funding heat networks; demonstrating their access to funds and their capability to deliver the associated services to execute funding. Finance options available will include equity finance and asset finance. HNIP was launched in 2019 to kick-start the market and has to date awarded £125 million to successful schemes across England and Wales. BHIVE will further support the work that has already been achieved by HNIP in ensuring a sustainable market which is not only economically attractive to investors but supports job creation and environmental benefits. www.tp-heatnetworks.org/bhive

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NEWS

HOSPITAL TRUST WINS NATIONAL AWARD FOR WORK TO REDUCE ITS CARBON FOOTPRINT United Lincolnshire Hospitals NHS Trust has won the Estates and Facilities Innovation Award at this year’s Health Business Awards.

nited Lincolnshire Hospitals NHS Trust has won the Estates and Facilities Innovation Award at this year’s Health Business Awards. This award highlights the amazing work the Trust’s Facilities Team has been doing to reduce its carbon footprint and at the same time make financial savings which can instead be used for patient care. The Trust has joined forces with Veolia to manage improvements to its energy infrastructure over the next 15 years. In the first year of this contract the Trust has installed LED lighting in its hospitals at Lincoln, Boston and Grantham, and installed a new combined heat and power unit at Lincoln. These energy upgrades are expected to generate financial savings of £1.4 million per year and will cut annual carbon emissions by 7,712 tonnes. Veolia have worked with the Trust for 15 years and this extends that

partnership for a further 15, in which we will continuously support the Trust to reach their Net Zero goals. Associate Director of Strategic Business Planning, Claire Hall, said: “This award means a great deal to the team, over a number of years we have worked to develop projects with Veolia to invest in our energy infrastructure to improve our sustainability and resilience. “The Trust received a grant from the National Energy Efficiency Fund for £2.6 million enabling the replacement of around 12,000 light fittings with modern LED fittings with smart technology that mean lights turn off after a period of inactivity saving energy and money for the Trust.” Chief Operating Officer, Simon Evans said: “I am so proud of the team and this award goes some way to recognising all of the hard work they have put in to improve our environments for patients and

colleagues, as well as being better for the environment and enabling us to use the savings we have made for patient care.” This year’s awards were held virtually due to the COVID-19 pandemic. www.ulh.nhs.uk/news/

Switch2 Energy releases guidance to updated Heat Network Regulations Updated legislation for heat networks came into force on 27 November 2020. The revisions aim to drive best practice in smart metering & billing and improve network performance.

eat network operators and stakeholders have been eagerly awaiting updates to the Heat Network (Metering and Billing) Regulations, particularly legislation surrounding the requirement to install final customer meters on existing unmetered networks. Heat network specialist Switch2 Energy has updated its eGuide to the Heat Network Regulations to explain the latest changes. The publication provides advice on the steps heat suppliers must take to achieve compliance. “The most significant update is the availability of the long-awaited costeffectiveness/feasibility tool“, explained Ian Allan, Head of Market Strategy for Switch2. “This viability tool enables operators of unmetered networks to assess whether or not they are required to retrofit final customer meters or heat cost allocators into individual homes. It is already mandatory for new build heat network projects and most major refurbishment

projects to install final customer meters.” The assessment of financial and technical feasibility of the heat scheme must be completed by 27 November 2021 and any required corrective action completed by 1 September 2022. In addition, heat suppliers are permitted to submit additional information to improve assessment accuracy. New building classes will be introduced (viable, open and exempt), with a stipulation that the cost-effectiveness assessment must be completed for all buildings that fall into the ‘open’ class. Individual meters must always be installed in viable class buildings and a small number of properties will be classed as exempt. Revisions to the heat network notification template have also been announced, including a process to help operators determine whether their network meets the criteria of newlycreated metering and billing exemptions. To give heat suppliers time to comply

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

with the changes, the Department for Business, Energy & Industrial Strategy (BEIS) and Office for Product Safety and Standards (OPSS) will delay the requirement to submit the re-notification template during a ‘transition period’ (from 27 November 2020 to 1 September 2022). This will apply to any operators who should be subject to the four-yearly re-notification deadline during this time. Ian Allan added: “It is vital that heat suppliers understand the new requirements of the Heat Network Regulations and are fully compliant. This will ensure that they avoid civil and criminal penalties, but will also help to raise network efficiency, reduce emissions and improve customer service.” OPSS has published the latest Heat Network Regulations documentation, which is available to download at www. gov.uk/guidance/heat-networks. www.switch2.co.uk

OPINION

CAN MORE BE DONE WITH THE UK GOVERNMENT’S 10-POINT GREEN RECOVERY PLAN? Dr Graham Ault, executive director at Smarter Grid Solutions

ike many who work in the clean energy sector, last month we eagerly awaited the release of the UK Government’s 10-point plan that would set the scene for our green recovery. And, while we welcome the roadmap towards achieving net zero for markets including wind and EVs, we believe more can be done to create a fully smart, clean energy system in the coming decade. More details are expected in the Energy White Paper released December 2020. The plan set out by the Government outlines investment in renewables and innovation, with a particular focus on wind power and EVs. It also looks at the integral role hydrogen will play in the renewables mix and what will be needed to successfully capture carbon emissions in order to reach national carbon reduction targets. While these do provide a good stepping stone towards a cleaner energy system, we must look at how these individual parts connect into a single large, more flexible system that will evolve with fast moving supply and demand changes and challenges.

INCREASING INVESTMENT INTO RENEWABLES One of the biggest targets set out in the plan is to produce enough offshore wind to power every home in the UK, quadrupling capacity to 40 gigawatts by 2030, and supporting up to 60,000 jobs. This marks a significant boost to the sector and builds momentum for a fully zero carbon grid. However, renewables by nature are intermittent - the wind does not always blow, nor the sun always shine. It is promising to see targets set out which will see the electricity grid increasingly powered by large-scale renewable sources, but this needs to be taken one step further and fully integrate into the

energy system to operate flexibly and cope with daily and seasonal variations. There are lots of tools that can facilitate that from flexibility markets, customer participation, attractive tariffs and digital-based smart-customer and smart-grid devices and systems, but the deployment of these needs to be vastly accelerated to support an ambitious clean energy transition.

CHARGING FORWARD WITH EVS The second-largest talking point from the plan is the target to phase out sales of new petrol and diesel cars and vans by 2030, accelerating the transition to electric vehicles and investing in grants to help buy cars and develop charge point infrastructure. This is excellent news for air quality, the climate and the job market. From an energy system perspective, this is also the ideal opportunity to deliver the level of flexibility that is much needed. For example, when EVs are charged they can play into a bigger integrated energy system but also use home solar power or local clean energy resources closer to the point of production. Further integration of EVs into markets with better grid solutions and customer propositions, as well as more investment into the charging infrastructure is needed to advance digital EV charging solutions to be part of that overarching clean, smart, flexible grid.

THE FUTURE OF THE ENERGY SYSTEM IN THE UK Although these targets are a great building block for a green energy system, a big part of the picture was still missing within the Government’s plan. The clean energy system of the future should be connected, developed

and managed a lot more like the Internet. This concept is already being referred to by industry leaders as the ‘Internet of Energy’, meaning to automate the generation, consumption and management of energy to reduce waste and to solve delivery problems rapidly. This can be seen in action for some parts of the current system including the scalability, interconnectivity and the democratisation of energy. Once this has been fully implemented, changes to any part of the system would be automatically integrated into the whole system to make sure it all works together, serving customers and the country with clean solutions, efficiently. Tackling these different strands of the energy transition together will make the customer experience seamless with all the intricate challenges hidden in the background, just like the Internet. While this sounds complex, there are many benefits of making these system changes. Mainly, that the characteristics of each of the new technologies and system needs can be managed to deliver clean, economic, resilient, customerfocused outcomes. Many of the required technologies already exist but the work of connecting all the individual parts of the plan together into a single system that works for everyone is a significant challenge and needs to be tackled with a joined-up approach. Finally, it is vital that we create compelling propositions for customers through flexible solutions targeted at much better options and outcomes. This trickles down from a decentralised and decarbonised energy system to enable new aspects of smart metering, flexibility markets, commercial arrangements and control over customer devices. When we have all of these components in place, net zero will be firmly within our sights. www.smartergridsolutions.com

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

OPINION

TURNING WHITE ELEPHANTS GREEN! George Richards, Director, JRP Solutions. Do you have a white elephant hiding out in your organisation? Or maybe even a whole herd of white elephants?

have discovered that, sometimes with the best intentions and some very good projected results, energy efficiency projects or equipment are commissioned and installed and then either never turned on OR turned on and then not operated in the way in which they were intended. Up and down the land, I have seen expensive technologies sitting idle and not fulfilling their potential once commissioned and installed. I asked around our consultants if they had had any similar experiences. Sadly the answer was a very loud yes! Here are just a few examples from our consultants where they have seen examples of these ‘white elephants’: “We rarely see a BMS that is operating optimally – we recently carried out a BMS optimisation exercise for a redbrick university where substantial energy and costs savings were made by rectifying some problems including: • Thermal wheel heat recovery systems not working • Faulty or inaccurate temperature sensors • Lack of dew-point temperature sensor resulting in dehumidification when not required • Heating and cooling systems fighting each other because of poor tuning of control loops • Heating and cooling control valves passing when in closed position.” “This picture is of a boiler plant in a school that was never connected to the BMS outstation when installed. So the BMS said all the heating was off, but I could see gas consumption going through the AMR meter so after some lengthy investigations the Operations Manager found this. This had been going on for about 3-4 years at a cost of about £10k

per year which represented about 35% of the school’s energy bill each year.” “One that springs to mind is a water company that had a medium sized hydro turbine installed at a reservoir, only for it to be mothballed and left in a state of disrepair shortly after and never really getting it going again because it was ‘too difficult’.” “To save costs, one global organisation had heat recovery systems installed cheaply in a configuration that is impossible to operate. The same client had a heat recovery exchanger replaced with straight pipe without client being aware.” “Installing a retrofit economiser is a great way to save energy - they basically take the heat from within a boiler chimney, and put it into the water going into the boiler (the feed water, which is normally at general tap temperature) to minimise the amount

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

of energy required to heat the water up in the actual boiler to the desired temperature. The downside is they get dirty very easily and pretty much every retrofit economiser project I have ever seen is either not working efficiently or not at all as a result of fouling and either lack of knowledge or willingness to keep it clean! We even saw one in a brewery where they couldn’t prove any benefits as they forgot to install any metering.” “One global manufacturing client had a major lighting project installation which was predicted to make significant savings. When we checked the data, we could see that the savings achieved were greatly below forecast following the initial installation because the contractor hadn’t adjusted the controls.” “In some schools where I worked, new biomass boilers were installed by the local authority to emphasise the council’s green commitment and credentials, as well as being part of a plan

OPINION toward reducing emissions. Alongside the Biomass boilers back up gas-fired boilers were installed. The schools were worried about running out of pellets or the biomass boilers breaking down and not knowing how they worked so they never used them and used the backup gas-fired boilers instead. I have also seen solar thermal installations not connected and rainwater harvesting projects abandoned because they needed regular maintenance which had not been costed or scheduled so were turned off. In another school a solar thermal project was installed as part of a bigger project to build a new sports Hall. No one on the design team had any relevant experience. It was supplied by the manufacturer but fitted on site by the build team. It was incorrectly installed and never worked.” All this equipment represents a substantial investment and an incredible waste of money, resources and potential energy and emissions savings. So, when most organisations are watching the pennies and striving to reduce greenhouse gas emissions, how can this happen? These are some of the reasons that we have seen: 1. Transfer or lack of responsibility: Often cutting edge equipment has been included by building designers in order to gain a high BREEAM rating for a new build, but once the building has been constructed, there is no proper handover so it falls to a building manager who doesn’t understand the technology and doesn’t know how to use and maintain it, so it’s never used. Additionally, the technology is provided by a third party such as landlord but occupants prefer not to use. 2. Personnel change: I have seen efficient buildings become inefficient because the only person who understood the Building Management System and made it look easy has left and the powers that be have assumed that because the building is efficient, a much less qualified person can be left to manage it. 3. Lack of training and skills fade: Often after initial equipment training, operators fall into bad habits and efficiency is lost. Sufficient initial training and regular refresher training is essential to maintain efficiency. 4. Limited documentation: The benefits of training can be lost if there is limited documentation. This may be limited to a folder

of operation and maintenance manuals for each component of a system, but lacking an overall documentation on how the whole system should operate efficiently. 5. Poor data analysis: Installation of good metering and monitoring equipment is an essential first step to consistent and comprehensive energy management to ensure maximum efficiency. Having installed the equipment however, sometimes there is insufficient ability to analyse and interpret what the data means and opportunities to make savings are lost. 6. Excessive ‘Value Engineering’: I have seen key elements of a project omitted or simplified to save costs, including omission of meters or sensors not deemed essential for efficient operation and simplifying an installation to such an extent that a system will be incapable of efficient operation. This can happen particularly on these last parts of a project if other elements have been over-spent. In such cases commissioning may have been deemed to be successful if, for example the required space or process temperatures have been achieved, but at the expense of excessive heating/ cooling conflict and energy waste upstream in the delivery system. 7. Culture: If the culture of the organisation is not aligned with energy and carbon saving objectives, it is unlikely that individuals will be motivated to either be aware of or address the technological challenges. 8. Mistake: Rarely is the purchase of new equipment a complete mistake, but it does happen. A thorough business case and options appraisal by a qualified person will ensure this doesn’t happen. Here are some sensible and

often quite simple steps that will ensure your equipment is being used efficiently and effectively to maximise cost and carbon savings: 1. Carry out an equipment health check and/or energy audit 2. Appoint an appropriate organisation to carry out system/ equipment optimisation 3. Implement appropriate training 4. Consider implementing a behaviour change programme 5. Engage professionals to ascertain viability of bringing the asset into service 6. Locate operating instructions and retrain/up skill staff or use external trainers if needed 7. Set correct operating parameters or confirm existing ones still match the operational needs of the building 8. Determine and set aside a maintenance/service budget for the future 9. Install permanent or temporary metering of consumption/generation of technology and analyse to gain insight to inform business case or monthly/annual reports on kWh/ carbon reduction or efficiency. We should all be focussed on doing everything we possibly can to work towards a Net Zero economy. We cannot afford to miss opportunities to save energy and reduce greenhouse gas emissions. In some cases there may be some costs involved in appointing specialists to help you maximise your investment and make the energy savings predicted but the cost of not doing anything will be far greater.1 If you have any questions or would like to discuss any of the above, please call JRP Solutions on 0800 6127 567 or email George. richards@jrpsolutions.com.

1 Cost of inaction analysis

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

Improving Energy Management on Traveller Sites West Sussex County Council

Case Study

Control, monitor and manage energy better than ever. West Sussex County Council has 10 traveller sites with 113 pitches across the county, ranging in capacity from three to 23 caravans. Each site provides hard standing areas for caravans next to brick-built utility blocks containing a toilet, shower, electricity points and meters for water and electricity.

The majority of residents stay for years at a time and take great pride in their homes and gardens. Many caravans have little or no insulation, so travellers are often heavy users of electricity as a result of heating their homes, as well as for power washing machines, tumble driers and so on.

West Sussex County Council’s traveller sites have a very low turnover rate of approximately five per cent, so there is often a waiting list for would-be tenants.

A reliable and accurately metered electricity supply is therefore a vital part of the service that the council provides.

❝ Working with Energy Controls, we have introduced a new cashless prepayment system at our traveller sites, which is more convenient for residents and gives them greater privacy than before. Since the introduction of PayPoint it has made the process even easier. The service is safe and secure, and income rates have increased to cover actual consumption costs accurately. Residents feel they have more control over their electricity usage and staff time has been freed up, enabling them to work more with the residents.

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Esther Quarm, Gypsy and Traveller Team Manager West Sussex County Council

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www.econtrols.co.uk 12

ENERGY CONTROLS

Metering, Measuring and Managing Resources

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

MONITORING & METERING

ENERGY MANAGER MAGAZINE â&#x20AC;¢ JANUARY/FEBRUARY 2021

MONITORING & METERING

HOW TO ACCURATELY MEASURE THE ENERGY PERFORMANCE OF A BUILDING Chris Ricketts – Business Manager for Elmhurst Energy Consultancy

n the largest study ever undertaken, properties were shown to thermally underperform by a shocking average of 60%. The performance gap between predicted and actual performance is well known and brings into question how buildings are monitored and measured. This is currently done by carrying out assessments which use assumed values - and therein lies the problem: ‘assumed’. Underperforming properties lead to higher carbon emissions and fuel bills for tenants – even pushing some into fuel poverty, which currently affects around 10% of households in England. Put simply, we need to get serious about measuring the performance of the UK’s housing stock.

WHAT CAN BE DONE? Over the past few years Elmhurst Energy Consultancy has been working with Build Test Solutions to develop a low cost, non-invasive and scalable way to accurately measure the thermal performance and overall energy rating of a building: Measured Energy Performance (MEP). MEP allows you to measure the energy performance of a building while it’s in use, using data gained from temperature sensors, energy meters and weather readings. The result is an in-depth report that allows you to compare the measured performance of your building against

its Energy Performance Certificate and make an educated decision on the next actionable steps.

MEASURING RETROFIT WORK “What gets measured gets managed” and this is especially true for retrofit work. What’s the starting point? What’s the improvement? And which measures are the most cost effective? All are important questions in helping government, housing associations, landlords and homeowners determine the right solution for them.

RECENT SUCCESS WITH ECO3 Elmhurst was recently involved in the UK’s first Demonstration Action under the ECO3 scheme, where energy suppliers are encouraged to deliver 10% of their obligation through the installation of innovative measures.

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

This involved measuring the performance of a smart air brick made by technology provider AirEx in over 100 properties. The results showed that Airex reduces whole house heat loss by 12% - 16% and ground floor heat loss by 20% - 23% which is a fantastic outcome for Airex and the ECO3 scheme.

THE FUTURE The UK’s 29 million homes account for around 14% of greenhouse gas emissions so there’s no doubt the future is retrofit. But we should be able to accurately monitor its impact, otherwise it won’t be measured and it won’t be managed. To find out more about Measured Energy Performance please visit: www.elmhurstenergyconsultancy. co.uk/Measured-Energy-Performance or email: consultancy@elmhurstenergy.uk

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MONITORING & METERING

UNCOVERING THE TRUTH ABOUT INRUSH CURRENTS

Lights are flickering, protection devices are tripping for no apparent reason and IT equipment is randomly malfunctioning. What’s going on? There can be many reasons for problems like these, but one that’s surprisingly common yet often overlooked is inrush currents. What exactly are inrush currents, why do they cause problems, and how can they be measured? Julian Grant of Chauvin Arnoux has the answers.

hen we think about loads – motors, lights, IT equipment and so on – connected to an electrical installation, our primary concern is often with the current that the load draws from the installation. “That motor will draw about 30 A”, “Those lights will take about 2 A”, and so on. But these are steadystate currents and, important as they are, they don’t tell the whole story. That’s because many types of load don’t draw their steady-state current from the moment they’re switched on. Before they settle into the steady-state condition, they draw a much larger current for a relatively short period of time. This is the inrush current. For example, when a motor is energised using an ordinary electromagnetic starter, it can draw an inrush current that’s up to 10 times its normal running current. And, particularly if the motor is heavily loaded, it can take several seconds for the current to settle back to the steady-state value. Transformers draw even higher inrush currents at switch on – up to 25 times their normal rated current. Even switch-mode power supplies, which these days are used in everything from computers to LED lighting systems, often draw surprisingly large inrush currents. In other words, loads that draw inrush currents are everywhere! Why does this matter? Problems resulting from inrush currents can be divided into two categories. The first involves circuit protection equipment, such as circuit breakers and fuses. The purpose of these is to trip (or blow) if they are subjected to a higher than normal current. Unfortunately, an inrush current is a higher than normal current, so it can often be difficult to select protection equipment such that

it adequately protects the installation but doesn’t trip when a motor starts or a transformer is energised. The second category of problem involves voltage dips. If you draw current from an electrical installation, the voltage supplied to the loads connected to that installation will inevitably fall. This is thanks to Ohm’s law, the impedance of the cables and other factors like the impedance of the transformer feeding the installation. It stands to reason, therefore, that if you draw a large inrush current, the voltage drop will be higher than in steady-state operating conditions. This sudden reduction in supply voltage may just make the lights flicker, which is annoying but not necessarily disruptive, or it may adversely affect the operation of computers and other electronic equipment, which is likely to be much more problematic. There are two key takeaways from this discussion: inrush currents are everywhere, and they can be a source of trouble. What’s to be done? Well, the first step, as always, is to gather reliable and accurate data about what’s really going on, and that means making measurements of the inrush currents in your installation. But before you do this, there’s something you need know: most instruments that claim to offer inrush measuring capabilities don’t provide the full picture. The problem with these instruments is that they can only measure inrush from a ‘standing start’ – in other words, in a system that is initially powered off. This can be very inconvenient, and in

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

most cases, it isn’t a true representation of what happens in real life, where a load that produces an inrush current is most likely to be connected to an installation that’s already live. To address this limitation, Chauvin Arnoux is now offering instruments with a True InRush® function. As easy and convenient to use as ordinary clampmeters, these instruments can measure the initial inrush current when a specific load is connected to the installation, whether or not the installation was already powered, and can also measure subsequent inrush events caused by connecting further loads to the installation. To deliver this functionality the instruments use a novel measurement algorithm. First, this captures the steady-state current for the installation, which it filters to remove anticipated normal variations, producing an RMS reference current. Then it carries out half-period monitoring, calculating the equivalent RMS current for every half cycle of the supply. If this exceeds a user-defined threshold, which is an

MONITORING & METERING

Figure 1: The TrueInrush® measuring procedure

indication that an inrush event has occurred, the instrument starts making measurements every millisecond, and this continues for a total time of 100 ms. At the end of this time, the results are processed digitally to calculate the true

inrush current for the period. Figure 1 gives an overview of this procedure. The accurate and realistic inrush data provided by these new instruments puts you in a position to easily identify any problem areas of your installation,

and also any problem loads. Once these issues have been identified, remedial measures can be put in place. These are outside the scope of this article, but could, for example, include installing a soft starter or a variable speed drive to control a motor rather than using a conventional electromagnetic starter, or upgrading protection devices so that they are no longer prone to tripping by the inrush currents, but still provide a satisfactory protection function. When the appropriate remedial actions have been taken, the final step is to confirm that all is now well by repeating the inrush measurements. In fact, it is advisable to routinely repeat the measurements, along with other key power quality measurements, at regular intervals to ensure that the performance of the installation is always optimised, and to provide warnings of any developing problems. As we have seen, determining the true value of inrush current in your installation is straightforward – providing that you use the right instrument. Should you need further advice on the details of the procedure, however, or guidance on interpreting the results, however, the expert engineers at Chauvin Arnoux are always happy to help. www.chauvin-arnoux.co.uk

The Public Sector Sustainability Association (PSSA) provides a professional association and network for all those working in the Public Sector who have a common interest in sustainability. The aim of the association is to bring together a wide group of people working across all areas of

www.pssa.info

the Public Sector – to educate, train, support and connect as we work towards a more sustainable future.

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

VENTILATION NEWS

MECHANICAL VENTILATION CAN CUT CARBON EMISSIONS IN SCHOOLS BY UP TO 40% Jonathon Hunter Hill, Sector Manager for Education, SAV Systems.

he average UK primary school is said to consume almost 120 kWh per m2 per year. The Carbon Trust estimates that over 50% of that energy use is by heating. By targeting space heating consumption in schools, we could see a substantial reduction in carbon emissions. In ventilating classrooms air must be extracted from the room and replaced with fresh air. In the UK, ventilation has largely been managed by two factors: the building fabric and openable windows. Considering the building fabric, many buildings in the past were built with a poor air tightness. As such, regular exchange of air was possible through gaps in the fabric. Newer buildings, however, are required to meet a certain level of air tightness which prevents this natural exchange of air through the fabric. The result is a poor level of background ventilation. Traditionally, to increase or decrease the ventilation rate in a building, one opened or closed the windows. However, there is one major issue with both this, and ventilation through the building fabric: heat loss. Consequently, space heating and ventilation are intrinsically interlinked. Finding a balance between efficient room heating and proper ventilation is a delicate process. BB101: Guidelines on ventilation, thermal comfort and indoor air quality in schools stipulates that daily average CO2 levels in mechanically ventilated classrooms should not exceed 1,000 ppm. To achieve this the air must be changed multiple times per hour. This air must be supplied at close to room temperature to avoid draughts. When the external temperature is lower than the room temperature, the incoming air must be warmed up, requiring a source of heat energy. Each classroom has a base heating load needed to maintain a certain room temperature. Classroom occupants negate some of the load due to their own heat output, typically at 70 W per person. This presents a challenge: how can we ventilate classrooms without losing heat? The solution is heat recovery.

Breakdown of Energy Use in the Average School

As the name suggests, the driving principle of heat recovery is that heat is recovered from the air. The process is simple; stale air containing heat is extracted from a room. This air is passed through a heat exchanger, where it transfers its heat into fresh air from outside. This fresh air is therefore warmed up before entering the room with the energy from the room with an efficiency of about 90%. Consequently, up to 90% of the space heating from the room is recovered and won’t need to be made up from other sources. This type of equipment takes the form of mechanical ventilation with heat recovery or MVHR. BB101 actually alludes to the difference in energy consumption between MVHR and natural ventilation commenting that, “systems with low initial capital costs may have unaffordable running costs.” (BB101 pg. 62, Life cycle and maintenance), often in the form of supplementary heating. An alternative method of retaining heat in a room is recirculation of air. Whilst this has a relatively lower energy cost, it creates one major issue particularly relevant to today’s climate: recirculated air is contaminated air. Therefore, by recirculating air in a room you are increasing the risk of transmission of airborne diseases such as the SARS-CoV-2 virus. Furthermore, BB101 requires that the daily average carbon dioxide (CO2) level in a classroom must be below 1,000 ppm. CO2 levels above 1,000 ppm have been proven to have a dramatic effect on one’s ability to perform numerous cognitive tasks. Therefore, maintaining a low room-CO2 level is paramount in the learning environment.

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

Heat recovery ventilation can eradicate the issue of recirculation. MVHR units are equipped with a pair of fans, filters, and a heat exchanger. To maintain a good level of indoor air quality, the entire volume of air in the room must be changed 4 to 6 times every hour. In doing so, harmful pollutants found outside are also removed, whilst extracting potentially dangerous pollutants from inside. By extracting the room air and recovering up to 90% of the energy contained within, both energy consumption and indoor air quality will be dramatically improved. To quantify the benefits of MVHR over natural ventilation or openable windows, a classroom typically requires about 3 kW of space heating to maintain the room temperature. Some of this may come from internal gains of occupants. To maintain good indoor air quality, this air will have to be extracted from the classroom 4 to 6 times every hour as previously stated. When using natural ventilation or openable windows, the 3 kW of energy in the room is able to flow out. As such, 3 kW of space heating would be required to return to the base level of heating. With MVHR, up to 90% of this energy is recovered, which is approximately 2.7 kW. To again achieve the 3 kW base level of heating, an input only 0.3 kW would be required. The result of using MVHR, therefore, is a much lower energy bill. Much of Europe has been on board with using MVHR for some time now. Indeed, in all Scandinavian schools it is compulsory to use MVHR. These countries typically set a minimum heat recovery rate of 70-80% and have limits on specific fan power, which are improved year-on-year. Demand controlled ventilation is required in a number of European countries to prevent unnecessary use of energy when rooms are not occupied. We are fortunate in the UK to be able to benefit from the leaps in technology that these countries have been required by law to make. For us SAV Systems that is exemplified in AirMaster Smart Mechanical Ventilation. https://www.sav-systems.com/

Classroom mechanical ventilation with heat recovery saves £120 per year…

…in heating bills when compared to traditional ventilation. An aluminium heat exchanger recovers up to 92% of the heat from the warm air in the room, and avoids classroom air recirculation.

Visit www.sav-systems.com/smart or call: +44 (0)1483 771910

VENTILATION NEWS

AIRMASTER MVHR CHOSEN FOR FLAGSHIP EDINBURGH SCHOOL THE QUEENSFERRY CONNECTION Nestled on the shore of the Firth of Forth sits Queensferry Community High School (QCHS), run by the City of Edinburgh Council. The Firth of Forth is the site of the new and highly sophisticated Queensferry Crossing, a road bridge designed to replace the existing Forth Road Bridge. Built in 2017, the crossing carries the M90 motorway and provides a strategic road link between Edinburgh and the cities of Dundee and Aberdeen in the North and East of Scotland.

can recover up to 92% of the heat from the exhaust air. The aluminium heat exchangers improve the unit’s energy efficiency as well as allow the incoming air to be tempered for draughtfree and even distribution across the classroom. AirMaster is committed to using the most efficient heat exchangers for each application to ensure best minimum energy consumption.

FRESH APPROACH TO BB101 COMPLIANCE The Scottish climate provides school designers with a challenge: to provide good indoor air quality whilst maintaining thermal comfort and good acoustic design. As such, BB101 (Guidelines on ventilation, thermal comfort and indoor air quality in schools) needed to be applied. Concerned about the risk of draught, the mechanical consultant Ramboll, undertook a computation fluid dynamics (CFD) study. The CFD found that a mechanical ventilation with heat recovery was the only solution able to meet all criteria, whilst managing low external temperatures. Results of the CFD in hand, Ramboll, Glasgow selected 1 x AM 300, 3 x AM 500 and 38 x AM 800 units for the project. AirMasters can supply tempered fresh air from outside at external temperatures below minus 5°C, having been designed for Nordic climates, with supply temperatures of 17°C plus, without causing draughts. By supplying fresh air only to these classrooms, without recirculation of stale air, the goal of maintaining a CO2 level of less than 1,000 ppm can easily be met.

Temperature distribution through classroom

A FAIR EXCHANGE The harsh winters and highly insulated classrooms of QCHS require a ventilation solution that can control varying temperature and run as efficiently as possible. The AirMasters chosen for QCHS use aluminium heat exchangers, which

The use of aluminium heat exchangers with a pair of internal fans and filters provide sophisticated control to filter and separate fresh air from contaminated air. With a policy of nonrecirculation of air, it’s business as usual for QCHS’s ventilation systems where COVID protection measures are concerned.

INNOVATIVE ENGINEERING As this project is a pilot installation for decentralized MVHR in Edinburgh, Airlinq Online was chosen as a method of remote monitoring. The ethernet modules would allow stakeholders to monitor how each unit is operating within each classroom. The information provided by Airlinq Online can give insights about temperature control and indoor air quality. It can also help to identify if a unit needs maintenance or a filter change. The AirMasters at QCHS join the 50,000 units that are in operation throughout Europe, helping to create the best teaching environment possible. Queensferry has a proud tradition of paving the way for the future of Scottish engineering. First with the groundbreaking innovation of the iconic Forth bridge and continuing to innovate with the use of MVHR at QCHS. This tradition puts the Edinburgh school in prime position to lead the way for other schools to help Scotland achieve Net Zero emissions by 2045.

The AirMasters chosen for QCHS use aluminium heat exchangers, which can recover up to 92% of the heat from the exhaust air. https://www.sav-systems.com/

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

ENERGY MANAGEMENT

THE BALANCE OF POWER

here appears to be confusion on the UK Government’s position for phasing out fossil fuel fired boilers. The Clean Growth Strategy launched in 2017 proposes to stop the installation of oil or coal heating systems from the mid 2020s where gas isn’t available, and to Improve standards on the 1.2 million new boilers installed every year in England. Philip Hammond, then Chancellor, announced in his spring statement of that year, “We will introduce a Future Homes Standard, mandating the end of fossil-fuel heating systems in all new houses from 2025.” He may have been quoting the Committee for Climate Change which recommended that new homes and commercial premises from 2025 should not be connected to the gas network and that by 2035 installation of gas boilers be phased out. However, there is no reference to a fossil fuel ban, in the Government’s own summary of the Spring Statement. Instead, there is a commitment to, “future-proofing new-build homes with low carbon heating and world leading levels of energy efficiency”. At the time of writing, mid-December 2020, a further news release announced a ‘mix up’ when 2023 as a pledge to ban gas boilers from new homes from Boris Johnson was withdrawn from the Downing Street website. Whatever the timescales, it can be assumed that any such heating policy will also be applied to commercial buildings such as the UK student accommodation estate which currently comprises over 660,000 rooms. The largest single source of carbon emissions, responsible for more than one-third of the total, is space heating. Although student accommodation is only a relatively small number, compared with 29 million homes, owners and providers should begin planning the transformation of their old stock by switching from fossil-fuelled boilers towards low-carbon heating sources. This will help with decarbonisation and, as importantly, maximise their effective use of energy. One of the hurdles that such upgrades will face is electricity supply. Accommodation that was built in the 70s and 80s with a reliance on fossil fuels for heating will have an electricity supply that, at the time, was adequate for powering the lights, kitchen equipment and power sockets. But roll on 30-40 years, and the cost of upgrading the

supply to run a fully electrical heating system could prove inhibitive. The benefits of new technologies and cleaner, greener energy make controllable electric heating systems more attractive than on/off wet systems. But the additional electrical load this will place on supply must be a consideration that is taken seriously before a refit is given the green light. Estimating the maximum demand for electricity in a building is an important calculation from both an operational and an energy efficiency perspective. This is a particular issue if a building is being repurposed or major renovations are afoot. Heat loss calculations will indicate the size of heaters required for each zone, but what if this adds up to a greater draw, than the building’s electricity supply can manage? A second consideration is procurement. Organisations that are big consumers of electricity will negotiate their tariff directly with their energy provider. Estimating their usage is a balancing act! – if they estimate too much they will be paying for unused capacity, too little and they face penalties for going over the agreed limits – in much the same way one predicts annual mileage when negotiating the monthly payments on a new car. Metering will provide the total consumption of power but, it is blunt instrument when it comes to calculating the ebb and flow of demand. Prefect Controls have overcome this conundrum with software they have developed and integrated with Irus – their central control heating system designed specifically for student accommodation.

It is unlikely that all electrical equipment i.e. heaters, cookers, lights etc. will be in use simultaneously. However, Irus steps in if demand rises unusually. Irus is able to use line metering data to calculate the total demand for the site. Nodes connected to each panel heater and water tank communicate with the central control unit. Energy Managers access data through the web-based portal and they can adjust parameters accordingly. This provides complete control over room temperatures and water-heating. Irus will automatically lower power input to non-essential heaters, such as those in corridors or stairwells and water tanks - or switch them off completely, if the pre-set maximum demand limit is being reached. This technology means sites that previously were unsuitable for electric heating can now benefit from the efficiencies of appropriately sized panel heaters without the need for huge investment in a power supply upgrade. Data can be collected and stored within the system, from which reports can be run to provide clear indicators of demand patterns. Procurement teams can use this intelligence to make informed decisions and more accurate projections of real energy use when it comes to negotiating tariffs with energy providers. Once again this proves that smart use of energy control provides efficiencies that are far beyond simply using less, but by balancing the demand to ensure supply is used effectively. www.prefectcontrols.com

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

ENERGY MANAGEMENT

GETTING READY FOR NABERS UK Eric Roberts, Business Development Manager, IES WHAT IS NABERS? NABERS – the National Australian Built Environment Rating System – is a six-star rating system that measures the energy use of buildings over the course of a year. It has been used in Australia for the past two decades and is now mandatory there for all new buildings over 2000 square metres and buildings that are up for sale or lease. NABERS UK was launched in late November and is a certification scheme (initially applying to UK commercial office space) which uses the tried and trusted methodology. The methodology used in Australia for the last 20 years has achieved impressive results over that time - 90% of buildings meeting their agreed energy targets, and a 33% reduction in energy usage over all buildings certified. The NABERS rating scheme measures the operational performance of the building. This is a significant change for the UK which is more used to using

Source: NABERS UK Design for Performance Fact Sheet

Energy Performance Certificates (EPCs) as a target and measure of building energy performance. However, EPCs are based upon predicted or designed performance rather than the measured. This will see a long overdue shift of focus towards energy monitoring and management, away from our current “design for compliance” culture to one of “design for performance”. The NABERS UK scheme will be administered by the BRE and the initial assessors will be accredited in early 2021.

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

WHAT IS THE PROCESS? The NABERS UK scheme follows a five step Design for Performance (DfP) approach. The approach is recognised by and complements several other leading industry initiatives, including: the BCO Guide to Specification, BSRIA Soft Landings, GLA Be Seen Energy Monitoring Guidance, GRESB, London Energy Transformation Initiative, RIBA Climate Challenge and the UK Green Building Council Net Zero Carbon Definition.

ENERGY MANAGEMENT WHAT DO I NEED TO DO TO GET READY? Detailed modelling of the building and its HVAC systems is fundamental to undertaking this work. This modelling work will also need to be subject to an independent design review and will need to be submitted as required. The building MUST be accurately modelled with all floors and zones represented along with any shading devices together with the surroundings of the building. So the modeller must have skills in the use of tools such as ModelIT and ApacheSim, from our Virtual Environment (VE) suite, to correctly represent the building geometry so it accurately reflects the form, along with all of the necessary inputs relating to fabric, occupancy, lighting & equipment. The HVAC system serving the building must be modelled in detail. The NABERS UK guide to Design for Performance states the following: “The HVAC plant and system input to the simulation program must be an accurate representation of intended operation. This includes the specified number, capacity and configuration of plant and equipment – including but not limited to chillers, boilers, cooling towers, pumps, air handling units, fan coil units and terminal units. Note: Default performance curves built into the simulation package for part load and low load operation are to be replaced by realistic performance data for the specified equipment.” In order to be able to meet this requirement the modeller needs to make use of advanced HVAC plant simulation, which can be achieved through the use of ApacheHVAC. This will enable the modeller to model all of the part load performance characteristics of the plant in the design. The modeller will also be able to simulate the control of the plant with far greater accuracy than with other simplified methods, increasing the robustness of results. So in order to undertake any NABERSUK project the modeller needs to have access to ApacheHVAC as well as be fully conversant in its use. The modeller will need to produce a minimum of six models to meet the DfP requirements, these are: 1. The base case model, with the building operating as expected; 2. Four off-axis models, being four separate scenarios testing factors that may degrade the performance of the building; 3. One combined off-axis model, comprising four offaxis scenarios each of which individually degrades the building performance. (Potential but not limiting scenarios are given within the guidance documents.)

Twin of the building to allow the testing of more operational strategies and enable the optimum solution to be arrived at, then implemented, helping to improve the NABERS UK rating further. The accuracy of our advanced HVAC modelling capability, combined with the data integration and analytics capabilities of iSCAN, has been proven to predict simulation results close to reality on countless projects, providing a reliable baseline from which to determine the actual performance of your buildings. This has been achieved, not only in the case of office buildings, but also across many other building use types, including schools, universities, libraries, museums, hospitals, financial services and government buildings. IES have all of the tools available to enable you to undertake these projects and begin to move into a more performance-based design world. Our software has already been used by our customers on thousands of NABERS certified projects in Australia and New Zealand, such as the 5* rated Aorangi House in Wellington. Our Consulting team also have many years of combined experience in employing NABERS in Australia and applying the ‘Design for Performance’ approach on projects, making them well equipped to support the NABERS UK scheme. Get in touch with IES Consulting to find out how they can help you on your next project. www.iesve.com

POST COMPLETION Once the building has been completed and is in operation, quarterly progress reports on energy performance must be submitted to the scheme administrators in order to achieve the certified rating at the end of the first year of operations. Whilst this is a long way off for schemes at present, thought needs to be given as to the monitoring of the building and more importantly how the data gathered is acted upon to ensure energy performance of the building is subject to continual improvement. Through the use of our iSCAN platform, real time data from the building can be analysed and used to inform where improvements to operational strategies can be made as well as plant that is operating outside of their optimal performance envelope. The data gathered from iSCAN can easily be compared to the outputs from the simulations performed in the VE and actual vs designed performance easily evaluated. The data gathered can be used to calibrate the model to produce a Digital

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ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

ENERGY MANAGEMENT

A WINDOW OF OPPORTUNITY? DECARBONISING BUILDINGS AS PART OF A GREEN ECONOMIC RECOVERY With many of our public sector buildings currently empty as staff work from home, is now the time to implement energy efficiency measures to enable and sustain a ‘green recovery’? Here, Liam Gillard, Programme Manager at Salix Finance, a Governmentfunded organisation which works to improve energy efficiency and reduce carbon emissions across the public sector, explores the need to tackle climate change amid the ongoing pandemic, and explains why we should make the most of vacant buildings by investing in energy improvements that will help rebuild the country in a more environmentally friendly way.

hile the pandemic understandably continues to be at the forefront of everyone’s minds, it is vital that tackling climate change remains a top priority for businesses and organisations across the country. The UK has already committed to achieving netzero emissions by 2050, and recently announced ambitious new targets to reduce emissions by 68%, compared to 1990 levels, by 20301 – goals that can only be achieved if we act now. The UK is also set to host one of the largest international climate change summits - the UN Climate Change Conference (COP26) – for the first time in November 2021 so it is important that we lead by example. As part of an economic recovery from the pandemic, climate-led investments will play a key role in helping to rebuild the nation and its economy post-COVID-19. A ‘green economic recovery’ will encourage innovation within green industries, stimulating job creation while helping to shape a more 1 https://www.gov.uk/government/news/uk-sets-ambitiousnew-climate-target-ahead-of-un-summit

environmentally friendly future for us all. Successfully achieving a green recovery will require a collaborative effort to be taken across all sectors of society, including the public sector, and every organisation will need to play its part. One way that organisations can tackle climate change and contribute towards the national green recovery, is by investing in energy efficiency technologies that will significantly reduce their energy consumption and carbon footprint. Doing so will enable them to support the emerging green sectors, supporting growth and further boosting the economy. As well as helping to improve buildings and the environmental landscape, investing in energy efficiency projects has significant financial benefits for the organisations involved, something that is particularly beneficial right now, as businesses look for ways to make cost savings in such an uncertain economic climate. Reduced energy consumption results in lower energy bills, and financial savings can be made on maintenance due to the longer lifespans and improved reliability of new technologies. Making such savings allows organisations to invest money in other important resources as well as become more resilient. Simple measures, such as lighting upgrades and adding insulation or heating controls, can achieve substantial energy and financial savings. Organisations can save thousands of pounds a year through such investments. An example of this is Wrexham County Borough Council, who worked in partnership with Freedom Leisure and Salix to invest over £115,000, upgrading the lighting in its sports areas to more energy efficient LEDs. The project allowed the council to save an estimated £17,662 a year as well as deliver on decarbonisation, reducing its carbon emissions by approximately 36.92 tonnes per annum. Emma Williams, Senior Energy Efficiency Officer for Wrexham Council, said: “It’s great news that new LED lights have been installed across our leisure facilities; the users of the facilities have already noticed a great improvement. We hope the substantial investment to improve the dual-use sport centres will continue to improve the energy efficiency of our buildings and support our work in delivering decarbonisation.”

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

With millions of employees currently working from home and many offices and buildings remaining empty, there has never been a better time to invest in such upgrades, avoiding staff disruption while helping to make cost-savings. The case for investing in energy efficiency has its benefits, however for many organisations, investing in upgrades may not seem like a viable option right now given the current financial climate. Despite the pandemic, funding options are currently available to help invest in such technologies. These include interest-free loans from Salix, which organisations pay back over several years from the savings they have made on energy bills. Since 2004, Salix has invested £971 million in energy efficiency projects across public sector organisations in the UK, resulting in estimated savings of over £203m and 867,000 tonnes of carbon a year2. Funding is available for both large-scale and small-scale projects and covers over 100 technologies, including LED lighting, building energy management systems and renewables. Upgrading old, inefficient lighting to modern LED alternatives can be a good start for many organisations looking to implement energy saving measures as it’s one of the most effective ways to reduce consumption. Similarly, adding motion sensors, to ensure lighting is only used when required, can help to further maximise savings. Renewables such as solar panels and heat pumps can also be viable options to help businesses future proof their buildings. When it comes to tackling energy efficiency, it’s important to take a holistic approach – this can be done by looking at the scope of work and investing in multiple improvements at the same time rather than focusing on one technology type. Doing this can vastly increase financial and carbon savings as well as improve the building environment for its users. As the world works to recover from the pandemic, and with the ongoing threat of climate change, supporting green industries has never been more important. On an individual level, investing in energy efficiency projects can help organisations to become more resilient, while also contributing to a greener future for us all. www.salixfinance.co.uk 2 https://www.salixfinance.co.uk/about-us

NET ZERO

NET ZERO GOALS IN THE PUBLIC SECTOR: HOW TO MAKE REAL PROGRESS Scott Parlett, head of public sector at BiU its behalf. For a council, this would mean including the emissions not just from your offices and council-run facilities, but domestic emissions from council housing, transport emissions from staff travelling to work, and more. It’s often difficult to work out which emissions to include in your audit, so many public sector organisations bring in specialists to help with this initial mapping exercise.

ast year may have been dominated by a pandemic and the subsequent recession, but it was also the year that the NHS in England made history with its commitment to become the world’s first net zero carbon health system. It was also the year when the number of local authorities to declare a climate emergency reached 300: nearly threequarters of all councils in the UK. But this sense of urgency hasn’t yet translated into action. A recent poll of UK councillors found that many lack confidence, both in their council’s chances of achieving its targets and in their own decision-making. How can public sector organisations overcome their hesitation and make progress towards decarbonisation in 2021?

MEASURE FIRST Setting an emissions reduction target without knowing what your current emissions are is like trying to map out a journey without a starting point. The first step is to measure your organisation’s energy use so that you have a baseline to measure future progress against. This means carrying out an extensive audit to map out all the emissions sources for your organisation.

COVER ALL AREAS It’s important that you include all the emissions generated by your organisation’s activities. The most robust audits include so-called Scope 3 emissions, those not directly generated by your organisation but generated on

MAKE DATA-DRIVEN DECISIONS You might already have an idea of where your organisation can cut carbon, but the results of your mapping exercise could surprise you. (The more it surprises you, the more opportunities it represents!) As you start planning your organisation’s route to net zero, you will want to prioritise changes that represent the best value first. Make sure that your decisions are based on the data you’ve gathered, rather than organisational preconceptions.

USE OTHER METRICS Large businesses don’t just record their greenhouse gas emissions; they use an “intensity ratio” to put them in context. That might measure how emissions relate to yearly profits, or it might be more creative: a pub chain might record tonnes of carbon per thousand pints poured, or a supermarket might measure kilogrammes of carbon per employee. Public sector organisations have many ways of measuring success in what they do, so harness yours as an intensity ratio. That might be the number of pupils in a school, the number of swimming sessions at a leisure centre or whatever is meaningful to you. This will give you a framework for assessing how potential emissions-cutting changes will affect the services you deliver.

CHART YOUR COURSE AND KEEP CHECKING IN The smaller and more short-term a target is, the more likely we are to achieve it. Setting the ambitious goal of net zero for a distant date will not set your organisation up for success unless

you have a detailed plan including interim targets. If you are to achieve net zero by 2030, where will your organisation need to be by this time next year? Make that a publicly stated goal to which your organisation will hold itself accountable. If you don’t achieve your early interim targets, you have time to get back on course before your ultimate deadline. It’s not just about using less It’s likely that most of your emissions will come from buildings and transport, and the first steps many public sector organisations take involve reducing use and bringing in energy efficiency measures. At the same time, organisations should be looking to change the source of their energy by considering the most viable renewable/low carbon options. Your organisation may already have a culture of sustainable procurement, in which case you just need to apply this to your energy use and do your research. Many organisations switch to a 100% renewable tariff, and there’s nothing wrong with that, but your money will work harder if you choose a supplier that actually invests in new renewables. You might be able to go even further and invest in renewable projects directly via a corporate power purchase agreement, or CPPA (a contract under which an organisation buys electricity directly from a renewable energy generator, e.g. a solar farm). Two NHS Trusts we work with are currently sourcing 100% of their power demand from localised renewables projects, and are also looking into the CPPA route to help get nascent renewables projects off the ground.

GET SPECIALIST HELP If you’ve set an ambitious target and you don’t have the in-house expertise to draw up a detailed and realistic plan, it’s time to bring in the experts. BiU works with many public sector organisations every year to help them achieve their emissions reduction goals. We’d be delighted to put together a tailored strategy that works for your organisation. www.biu.com hello@biu.com

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

NET ZERO

WORKING TOWARDS ACHIEVE NET ZERO CARBON EMISSIONS DURING 2021

or many businesses in the UK and throughout the entire world, reducing carbon emissions with the intention to reach net zero carbon remains one of their top priorities. Climate change still remains a real and formidable threat to the whole planet, and scientists have warned that significant changes are required to avoid catastrophic, environmental events. These events could have effects that could drastically change the landscape of several industries in the UK and throughout the world. Such circumstances are driving global enterprises like PepsiCo and Microsoft are making strides towards greater sustainability, increased use

of renewables and achieving net zero carbon. Members of the UN Climate Change Conference (COP26) aim to take drastic action, and, fortunately, many UK Governmental bodies and private organisations are also getting on board. The UK Government has set its net zero target for 2050, alongside planning to ban the sale of new petrol and diesel vehicles by 2030 to steer one of the biggest contributors to the UKs carbon emissions towards more sustainable sources. Now, in the current context of the COVID-19 global pandemic, the UK Government has ambitions to seize the opportunity and launch a new green recovery plan to accelerate efforts in the fight against climate change.

ENERGY MANAGER MAGAZINE â&#x20AC;˘ JANUARY/FEBRUARY 2021

While this can be a daunting task for UK businesses who may be lacking immediate resources, the same opportunity exists for them to move closer to meeting net zero carbon emission targets that can achieve savings on overheads.

BUSINESS CHALLENGES FOR ACHIEVING NET ZERO CARBON When thinking about the challenges that businesses face on their journey to net zero, most likely the financial implications will be at the top of the list. A comprehensive and long-term plan to net zero emissions will be complex, and often require significant capital investment or a robust funding

NET ZERO

model. The larger the company and the more complex its operations, the more investment will likely be required. However, not being left behind in the energy landscape is a crucial part of securing the longterm future of an organisation.

HOW BUSINESSES CAN MOVE TOWARDS MEETING NET ZERO CARBON TARGETS A survey conducted by facility management firm Mitie of, with representatives from over 500 businesses across multiple sectors, found that the first challenge comes long before this stage; planning the strategy. The main reason for this, according to the findings, is a lack of ‘in-house expertise’ and resources leading to overly-ambitious targets (some aiming for as early as 2025), and an inability to plan an achievable route to net zero. Considering the aforementioned ‘lack of expertise’, the first step to developing a strategy to net zero is education. By educating staff, gathering the appropriate resources, and seeking expert advice, businesses can create the foundations on which to build their carbon targets and objectives, enabling them to set specific, timebound, and achievable objectives to confidently work towards. Once these objectives are defined the business must consider how its

net zero plan will be funded. For many companies, unfortunately, it’s not as simple as dipping into the cash reserve, and it’s highly likely that some of the activities or projects undertaken on the path to net zero will provide little-to-no financial return, particularly when looking at decarbonising the supply chain, which can often eat into profit margins. On the other hand, some projects can provide an attractive ROI and save you a lot of money in the long run, such as energy consumption reducing projects like voltage optimisation. The easiest way to fund a net zero strategy is through a phased approach, and this could include many different funding options for the differing projects that make up the strategy as a whole. For example, a switch to renewable energy could simply involve purchasing energy from a 100% renewable energy provider. Or, if your business has the space available, you may consider purchasing your own on-site generation through solar PV and wind turbines with capital expenditure, with an acceptable payback period from the reduced costs of energy ultimately paying for the project. Alternatively, your business could reap the benefits of various funding solutions, such as revenue sharing agreements or power purchase agreements (PPAs) to reduce or eliminate upfront capital cost on applicable projects. With so many funding options available, it’s important that businesses

do their research to find the right solutions for them, enabling them to achieve their net zero goals ontime, and in an affordable manner.

GOING FROM TALKING THE TALK TO WALKING THE WALK Once a net zero strategy and funding plan are in place, businesses must stick to it. This will often be a long, phased approach entailing various significant changes to the business’s operations along the way. Additionally, for a full net zero strategy to be successful, stakeholder and employee buy-in is required to ensure new processes are followed and championed throughout the business. This could mean a complete shift in the company’s culture and will take some time, but without it, achieving net zero will be considerably more difficult. If your business, like many others, is concerned with being overwhelmed by the task of reaching net zero, Powerstar can help your business plan its journey. If lack of expertise is holding your plans back, our energy industry experts and R&D focused culture means expert consultants can provide precious assistance in the planning of a long-term strategy to reduce carbon emissions and achieve substantially. https://powerstar.com/

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

NET ZERO

CUTTING THE CARBON JARGON AROUND NET ZERO

Dan Crowe, Optimisation Manager, Inspired Energy

et zero has become a hot topic since the UK’s 2050 emissions target was enshrined into law in 2019 - but as the Government begins to set out its plans to reach its ambitious milestones, the growing amount of jargon in the net zero conversation could be preventing many organisations from making much-needed progress towards their own goals. For many public sector organisations, reaching net zero emissions by 2050 against a backdrop of squeezed budgets and pressing short term priorities may seem like an ambitious target - so the Government’s new commitment to reducing emissions by 68% by 2030 will have many wondering how they will be able to contribute to this goal. Because the government is yet to publish a clear net zero roadmap, which many organisations are eagerly awaiting in order to move forwards with their carbon reduction plans with confidence. And government policy isn’t the only area where organisations are lacking clarity around net zero. A whole new vocabulary has sprung up around the topic, as organisations try to communicate their targets, strategies and achievements without clear guidance or a reference document to work from. When we spoke to over 100 energy managers from businesses across the UK, this issue was highlighted when we asked them to define net zero. Most mentioned one of three key terms: carbon offsetting, carbon/emission elimination or carbon/emission reduction. While these terms sound similar, they have very different meanings. Clearly, net zero is being interpreted differently by different organisations. It’s therefore unsurprising that 86% of energy professionals believe that ‘net zero’; is in danger of becoming a meaningless term. But it’s not just the term that’s in danger – unless the public sector is given a consistent approach to defining, planning and measuring their net zero progress, the UK’s ability to meet its decarbonisation targets is also under threat.

CLARITY MUST COME FROM THE TOP While some public sector organisations will have secured funding for heat decarbonisation and energy efficiency measures through the Government’s £1billion Public Sector

Decarbonisation Scheme, applications for this scheme are now closed and further support is needed. The public sector also needs clear guidance to understand what is expected of them and what strategies they can pursue to achieve it. Currently, the absence of clear guidance from the Government is leading organisations to define their own paths and methods of measuring their progress. Lots of councils are setting ambitious targets – recently, 38 city and council leaders pledged to eliminate carbon emissions from their local authorities by 2030, and to neutralise greenhouse gases from their local communities by 2045. But just 6% of energy professionals said that they measure their progress using frameworks like the Scope 1, 2 and 3 emissions framework – the majority use internal consumption monitoring or KPIs instead. While it’s encouraging that the public sector is striving to play its part in helping the UK to reach its decarbonisation goals, the confusion around measurement risks leaving some organisations behind. While some are forging ahead with their own strategies and setting goals, other organisations could find themselves on a steeper or costlier journey to net zero because of the delay that this lack of clarity has caused. It’s therefore vital that the Government provides public sector organisations with a clear roadmap to net zero, underpinned by a consistent framework within which they can develop, measure and progress their emissions reductions. One of the contributors to Inspired Energy’s Cutting the Carbon Jargon report, Dr Grant Wilson from the University of Birmingham’s Energy Institute, agrees that “given the role that businesses must play...and the timelines involved to ensure sufficient time to prepare, plan and invest in decarbonisation, clarity is essential to avoid additional confusion or delay and promote a consistent approach across organisations. The sooner this is set out, the sooner organisations can begin or continue their efforts towards decarbonisation with the knowledge that they are basing this on a set of consistent definitions.”

reduction journey step-by-step, from setting meaningful targets to reviewing their progress. Like all reduction programmes, the first step for any organisation is to get to grips with their emissions, and the GHG Protocol Scopes 1, 2 and 3 are the ideal method for doing so. By collecting data and re-porting on their Scope 1, 2 and 3 emissions, organisations can build an accurate baseline to measure their progress against, which should enable them to identify which areas they should prioritise in their net zero strategy. Unlike private sector businesses, most public sector organisations are not required to comply with schemes like the Energy and Carbon Reporting Scheme (ESOS), so measuring their emissions under a universal standard like the GHG Protocol could make it easier for these organisations to benchmark their progress against other organisations. Once they have a good understanding of their existing carbon footprint, organisations should have the information they need to set an ambitious yet achievable net zero target. Almost two thirds of energy professionals told us that they were concerned that their emissions reduction targets could be seen as ‘greenwashing’, which is likely due to the jargon and wide variety of different measurement measurements used by different organisations. That’s why we recommend that organisations set Science-Based Targets (SBTs) to demonstrate their commitment to emissions reduction, specifying how much and how quickly they plan to reduce their emissions. Every organisation will start from a different baseline and set different carbon reduction goals, and that means that each organisation’s ideal route to net zero will also be unique. Once they have established their baseline and their goal, they must create a clear strategy and roadmap to ensure that they can meet that goal, detailing the carbon reduction projects and the action required to achieve it. By regularly monitoring their progress, and using their data to drive decisions, organisations can move towards their goals with confidence.

PROGRESS CAN BE MADE NOW

It’s clear that greater clarity, simplified terminology and universal frameworks for measurement are all needed in order to help public sector organisations to play their part in helping the UK to achieve its net zero target. But while we wait for robust and widely-accepted standards around net zero, organisations must still take action to reduce their carbon footprints using the tools that are available to them today. www. inspiredenergy.co.uk/carbonjargon

Organisations cannot afford to wait – they must strive to cut through the ‘carbon jargon’ and take action now to reduce their emissions. At Inspired Energy, we know that organisations benefit from taking a structured approach to net zero, so our Carbon Action Programme is designed to take organisations through their carbon

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

TAKING ACTION TODAY

EMS/BMS

USING YOUR BMS TO CREATE WELLBEING – GOING BEYOND ENERGY EFFICIENCY Martin Craig of Siemens Building Products UK

raditionally the focus on the promotion of Building Managements Systems (BMS) has been how they can deliver energy efficient buildings. This is still important as buildings account for 41% of the world’s energy usage. A BMS that is installed to the Class A guidelines of the BS EN15232 standard can deliver up to 30% energy savings compared to one which meets Class C of the standard. But there are so many more benefits that a well-designed, installed, and commissioned BMS such as the Desigo system from Siemens Building Products can provide. A slightly scary statistic is that even before the current situation we spent around 90% of our time indoors This has led to a growing awareness that the quality of the air we breathe has a significant impact on our health, wellbeing and productivity. This is especially relevant as and when people do start coming out of lockdown and returning to work. Commercial buildings are becoming clean in order to maintain the health of the people who live, work and play in them. So why is healthy air so important and what can be done about it? There is science behind this: The result of work by Usha Satish1 et al. published in 2012 is illustrated in Figure 1. The productivity of students was tested for tasks that required different levels of involvement under various exposures to CO2. It was found that even for simple tasks, such as listening and absorbing information, the performance of the students increased by a significant factor of 1.5 when the air quality was improved. For tasks requiring higher levels of involvements, such as taking initiative, the measured performance increased by a sheer factor of 10. Keep in mind that these high-value tasks are what make people stand out and advance 1 Usha Satish et al., Is CO2 an Indoor Pollutant? Direct Effects of Low-to-Moderate CO2 Concentrations on Human Decision-Making Performance. Environ Health Perspect; DOI:10.1289/ehp.1104789, 2012, http:// dx.doi.org/10.1289/ehp.1104789

their career and are what generally speaking makes a workforce more productive. A BMS can be used to that brings in exactly the amount of fresh air that is needed to make sure occupants stay productive by measuring CO2 levels and delivering demand-controlled ventilation. Companies who know how to drive productivity get the most out of their people’s talent, produce fewer failures and bring better products and services to the market, which in turn drives revenue and profits. Staff are the most valuable asset of any organisation. Relative humidity is another key factor to monitor and control. Keeping the rH levels between 40-60% can reduce the spread of viruses that cause colds and flu by up to 70%. There is an understanding that buildings can give you a headache and/ or irritation of eyes and throat in what has been called Sick Building Syndrome (SBS). One major cause of SBS is the out gassing from building materials such as carpets, paints or furniture. These gases are summarised as Volatile Organic Compounds (VOC). Recent laws on energy saving require well insulated and draught-proofed buildings to minimise the need for heating and cooling. The resulting air tightness of buildings, however, also keeps the VOC gasses inside, creating SBS among occupants. Humid air as well can indirectly contribute to SBS by promoting the growth of fungi and mould. Besides devaluing the building value, exposure to mould spores represents a hazardous health risk. Symptoms range from allergic reactions to poisoning by mycotoxins. Today already, every second school child is experiencing sensitisation to one or more allergens. The number one measure to prevent SBS is proper ventilation. In cases where HVAC is not fully automated, it is all about

knowing when to open the window. We are increasingly getting used to what is called “quantified life”: We measure our heart rate, record the number of steps taken during the day and want to know the likelihood that it is going to rain today. Similarly, a BMS can be used for monitoring and quantifying remotely not only the SBS indicators of VOC and humidity, but also temperature and CO2 levels, by using one single wall mounted multi-sensor device. Studies suggest that next-generation HVAC control systems will incorporate measuring capabilities for pollution factors such as fine dust, and a fine dust sensor in either a room or duct mounting version is now available from Siemens with either DC0-10V or Modbus communication. This enables a trade-off between providing fresh air (thus reducing indoor CO2) and the introduction of pollution from outside. Smart algorithms also anticipate pollution based on weather forecast: A building is ventilated in the middle of the night, when pollution is typically low, or before an inversion weather situation occurs that typically comes with high fine dust concentration. The air that we breathe has a significant impact on our health and productivity. Since we spend most of our time in buildings it is of great importance to make sure indoor air is clean and healthy and controlled properly. Sufficient ventilation helps to keep people productive and avoid unhealthy conditions. The BMS is key to ensuring you create perfect places for your health and productivity so make sure you get the maximum benefits from it. https://new.siemens.com/uk/en/ products/buildingtechnologies.html

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

WATER MANAGEMENT

HOW HMRC IS EMBRACING SUSTAINABILITY We all know by now how important it is to start living and working more sustainably in order to help protect the planet and ensure that the world’s natural resources aren’t put under too much pressure – so it’s always heartening to hear stories of big businesses making strides in this regard.

MRC has just published its Sustainability Report for 2019/2020, revealing that that it has been a top performer when measured against the Greening Government Commitments – and it has also just committed to becoming net zero carbon by 2040, one of the government’s most ambitious goals. Where water is concerned, the organisation has successfully achieved its efficiency target of below 7m3/full time equivalent (FTE), with a 46 per cent reduction representing a saving of over 437 million litres of water – which is enough to fill 175 Olympic-size swimming pools. Between 2009 and 2020, water efficiency improvements were made from 13.17 cubic

metres per FTE to 6.7 cubic metres, achieved through a reduction in estate size, prompt water leak repairs and the introduction of water efficiency measures, such as replacing old plants with more efficient equipment. Water consumption also dropped from 540,000 cubic metres between 2018/2019 to 524,000 cubic metres in 2019/2020. Director of communications and sustainability champion Poli Stuart-Lacey observed in the foreword to the report that the organisation’s sustainability work goes beyond its environmental targets and it has also been engaging with communities, building closer ties to ensure that its services reach those who need them the most. She added: “While these are really positive changes which signal a

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

gradual shift in behaviour, the impact of covid-19 has had an immediate and huge impact on the way we have all worked and travelled since March. “With only a few days of early lockdown falling into this reporting period, the impact from covid-19 won’t be reflected in these figures, and we’ll need to wait until next year’s report to see the true extent of the changes brought about by the pandemic.” If you’re inspired by how green HMRC is becoming to take similar strides in this regard, you’ll be pleased to hear that there’s a lot you can do as a business to start being more sustainable… and given the pressures that our water resources are now facing, this could well be an excellent place to begin. To make an immediate impact, why not prioritise water leak detection and repairs? You may well have leaks on your site that you don’t know about and this could be wasting huge amounts of water, as well as costing you money in elevated bills and even potentially damaging your site through water damage. If you’d like to find out more, get in touch with the team here at H2O Building Services today to see how we can boost your green credentials in the new year. https://www.h2obuildingservices.co.uk/

Water Industry News

We’re bringing you news and information from around the UK’s water retail market and beyond.

YORKSHIRE BUSINESSES URGED TO SIGN UP TO WATER SAVING PROMISE

YORKSHIRE WATER INVESTING £1 MILLION IN HAWES TO PROTECT WATER SUPPLIES Read This Article

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WATER COMPANIES ‘ROUTINELY’ DISCHARGING SEWAGE INTO UK WATERS

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INCREASES IN SCOTTISH WATER INVESTMENT TO SUPPORT NET ZERO GOALS

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SEWAGE WATER LEAKS INTO SOUTHMOOR NATURE RESERVE Read This Article

ENERGY SUPPLY/STORAGE

MANAGING ENERGY IN TIMES UNCERTAIN – HOW TO PLAN IN AN UNPREDICTABLE CLIMATE

Michael Byrne, head of marketing and insight, npower Business Solutions

ithout doubt, 2020 has been challenging for almost every business. The closure of many industries for a prolonged period during the Spring, a second ‘lockdown’ in November and the ongoing tightening of restrictions, will continue to have a profound impact on how we do business. Even those industries that have been permitted to continue, such as construction and manufacturing, will have seen a significant change to how their premises are managed. For sectors such as retail and hospitality, the requirement to close with very little notice makes effective planning even more difficult. For energy managers, the regular changes to workplace rules and regulations present their own challenges - from having to quickly switch to managing the energy consumption of buildings during times of low (or no) occupancy to knowing how much energy to purchase. So, what actions can energy managers take to ensure they can manage energy demand, keep sustainability front of mind, while also ensuring their properties are running efficiently? . For us, there are five practical steps to take in the short, medium and longer term.: 1. Plan for future disruptions For many businesses, the closure or reduced activity at some sites resulted - and continues

to result - in a change in demand for energy. The first lockdown in March and April hit demand hard - figures from National Grid showed that demand for power fell by as much as 20%, dropping sharply in March and reaching its lowest around the Easter weekend (11/12 April). While demand slowly started to creep up to pre-Covid levels as restrictions were eased, the stricter restrictions introduced during the Autumn are likely to have had an impact, albeit not as profound as in March. For any significant change in usage, businesses may be able to reduce what they thought they were going to have to buy or potentially sell back volume that will not now be used. The key thing is to not panic. For example, although the pandemic had an impact on short-term energy prices, the long-term PPA that looked like a good deal preCovid-19 may still be a good deal in the longer term. Over the next six months, it is important to work with your supply partner to look at the longer-term implications of fluctuating energy consumption and prices, and how to best mitigate any risk - or assess any opportunity.. 2. Make the most of the (final?) Triad season The 2020/21 Triad season started on 1 November and, as with many things this year, it is difficult to predict when the three half hours of peak demand will fall over the coming winter season. The ability of an expert team of Triad-forecasting specialists to successfully read and predict demand is going to be more crucial than ever this season, as with so much uncertainty and unpredictability around, we are not expecting the usual factors to apply in the same way as previous years. Despite so much uncertainty, the one sure thing is that reducing consumption during potential Triad periods is likely to save large businesses

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

significant sums of money. National Grid bases its Transmission Network Use of System (TNUoS) charges on consumption during these three half hours of peak demand, which are only calculated after the end of the winter season. With charges as high as £59,2671 for every megawatt consumed during a Triad period, any reduction can result in significant savings. Load shifting or switching to on-site generation are the most common ways to Triad manage. An expert partner can help to automate this process and advise on the best way to manage your business’s energy use during suspected Triad and other peak-charging periods. 3. Maintain a focus on net zero by taking control of cost and carbon. While predicting demand is challenging, energy managers should focus on the areas that they can control. Energy efficiency has been called a ‘no regrets’ action and can include relatively ‘quick wins’ such as switching to more efficient lighting, air conditioning and refrigeration, as well as bigger investments such as implementing a smart energy management system. The key to making sure you are making the right decision on where to invest is by ensuring you have a thorough understanding of your data - how and where energy is being used, the efficiency of infrastructure and processes, and how employee behaviour impacts emissions. An energy audit can help spot risks and identify improvements. Using real-time data collection and analysis can enable energy managers to spot and correct areas of waste, by seeing if lights or equipment have been left on, or if the settings on the Building Management System are not optimal. The increased visibility also makes it possible to assess the effectiveness of each new energy efficiency measure implemented. Importantly, in these current 1 HH Demand Tariff for London area for 2020/21, as published by National Grid.

ENERGY SUPPLY/STORAGE times, it can also be managed remotely. For us, while working from home during the lockdown, the capabilities of our energy monitoring systems – and ability to remotely monitor and control building services via our Building Management Systems – have paid dividends in terms of effective energy management oversight. 4. Keep an eye on future demand side response opportunities National Grid’s Optional Downward Flexibility Management (ODFM) service came to an end on Sunday 25 October. The balancing initiative – which paid generators to reduce output or large consumers to increase consumption to avoid the system being overwhelmed when supply exceeded demand – was introduced as a temporary solution in May 2020 to help manage the unprecedented conditions of very low national demand caused by the Covid-19 pandemic, particularly when output from the country’s wind and solar generators was high. Delivery of ODFM required mostly renewable generators to reduce output or switch off for extended

periods of time, with ‘Day Ahead’ notice given by National Grid. But some large consumers were also asked to ramp up consumption during periods of high supply. While the outturn of events was lower than National Grid forecast when it first launched the product, it has identified a definite enduring need for ‘negative reserve’ or a ‘footroom service’ in future summers, when the need for downward flexibility is at its greatest due to high wind and solar output. While it is evident that the service was not without its flaws and required significant manual handling of despatch events and data, we expect that these issues will be addressed in future product design as part of National Grid’s Reserve reform activities. 5. Plan for a more selfsufficient future One way to manage future risk is to look at on-site generation options. There is now a great deal of choice for businesses, including CHP, wind, solar photovoltaic (PV) or biomass. Our recent report, ‘Your Business Blueprint - The road to Net Zero’,

revealed that, despite the pandemic, businesses are still planning to invest in a variety of measures to achieve their carbon reduction targets, including on-site generation. As well as managing market variables and reducing emissions, it also increases resilience as it means a business is less reliant on the grid. That said, businesses need to make sure that any plans for on-site generation are scoped appropriately, so they can assess where the payback and benefits are.

OPPORTUNITIES IN UNCERTAINTY The next six months will undoubtedly bring challenges. However, within this uncertainty, we believe that there are opportunities. With planning and a focus on sustainability, energy managers can effectively plan their supply, manage energy use, keep costs down and reduce carbon emissions. For expert advice from npower Business Solutions, download the Energy Management Toolkit at https://www.energy-hq.co.uk/ energy-management-toolkit/

THE FUTURE OF STATIONARY ENERGY STORAGE IS LED BY POLICY AND RENEWABLES, REPORTS IDTECHEX

lectricity generation from renewable energies is growing on a daily basis and, to integrate their variable nature, energy storage systems are growing in parallel. IDTechEx have investigated the evolution of the energy storage market, forecasting its growth in the next ten years, in the new report: “Batteries for Stationary Energy Storage 2021-2031”. The evolving energy storage market is separated into two branches, Frontof-Meter (FTM) and Behind-the-Meter (BTM). The FTM sector is related to the operation of the electricity infrastructure; therefore, batteries are employed to maintain a smooth and continuous flow of electricity to the consumers. The BTM market instead is the customer side of the market; hence batteries are used by consumers to decrease electricity costs mainly. The services provided by the batteries are similar most of the time, although on a different scale.

The report “Batteries for Stationary Energy Storage 2021-2031” aims to provide the reader with a clear picture of the current status of the development of these two branches in the main countries currently adopting battery storage systems. IDTechEx’s forecasted battery installation breakdown by application. Source: IDTechEx, “Batteries for Stationary Energy Storage 2021-2031”. The future adoption of green policies will drive the adoption of renewable energies in both segments of the market, although other parameters like grid infrastructure and the energy sources adopted by countries (e.g. nuclear, coal, and lignite power plant) will play an important role in the adoption of energy storage systems. To better understand the future evolution of the energy storage market, IDTechEx performed an in-depth analysis of the main countries adopting energy storage systems (including the U.S.,

China, Japan, Australia, Germany, and others), investigating the latest policies in terms of renewable energy and energy storage, as well as interviewing leader companies in the field of energy storage, to understand the market approach and the possible effect of COVID-19. The result of this analysis shows a similar but different scenario among the investigated countries. The renewable energy target, with the current status of the grid infrastructure, in consideration of the different types of energy sources adopted by the country, defined a specific scenario for every country. As well as the differences, a clear point has been identified: the stationary storage market is only in its early stages, from both technical and policy aspects. For more information on this report, please visit www.IDTechEx.com/ses or for the full portfolio of Energy Storage research available from IDTechEx please visit www.IDTechEx.com/Research/ES.

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

ENERGY SUPPLY/STORAGE

POSSIBILITIES WITH BATTERY TECHNOLOGY The UK’s efforts to meet ambitious government net zero carbon emissions targets by 2050 continue to gather pace, with BEIS figures showing the country broke renewable energy generation records in 2019. However, as we transition to greener power sources, it is vital energy storage infrastructure in order to negate potential disruption, says Chris Rason, Managing Director for Northern Europe at Aggreko UK.

t cannot be denied that industry, and the country as a whole, are trending toward more sustainable energy sources. BEIS figures published earlier this year showed that renewables constituted a record 37.1 per cent of UK electricity generated last year, and this figure will likely rise in 2020 due to pandemic-induced lockdowns. News like this, combined with recent Government announcements that all UK homes will be powered by wind within a decade, show definitively that green power is a growing concern. However, UK industry’s enthusiasm for green energy sources has not been mirrored in the uptake of battery storage technology. To an extent, this reluctance can be explained, as battery storage on the industrial scale has traditionally been seen as expensive. Yet the ongoing decarbonisation of the National Grid has injected fresh urgency into this issue, with companies potentially needing to consider battery technology if they are to avoid concerns that may arise from growing dependence on renewable energy.

FLUCTUATIONS First and foremost among these concerns is the possibility of power fluctuations. The National Grid’s October announcement that unusually low wind speeds were affecting the country’s energy supply demonstrates an issue that, if not accounted for, may grow in

prominence as we transition to greener energy sources. Companies reliant on the grid for power could be placed at risk of unplanned downtime, which, in turn, could affect their bottom line. With COVID putting budgets under pressure like never before, this disruption could have a huge impact. However, if organisations cannot afford to invest in energy storage technology to alleviate this risk, they could find themselves locked in a situation they cannot resolve, and could get worse.

OFFSETTING RISK Consequently, it is clear that energy storage technology needs to be implemented on a wider scale if industry is to build resilience while hitting net zero targets. This resilience issue was highlighted in research from Aggreko carried out last year, when 82 per cent of key energy decision makers surveyed pinpointed power continuity as a major or significant concern to their business. Added to a site’s wider energy mix, battery technology can provide an effective and green way of offsetting these concerns and potential risks associated with power fluctuation. By allowing energy levels to be ‘smoothed’ and deployed at times where energy supply might be declining but on-site demand is increasing, it can serve as a bulwark against potential disruption. This smoothing effect also extends to ensuring consistent performance

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on equipment more sensitive to larger load step changes, like gas generators. Because batteries can ensure frequency and voltage remain within agreed specifications, such fluctuation-based disruption can be minimised.

UPS AND SPINNING RESERVE As well as stabilising energy provision, this energy storage technology can serve as an uninterrupted power supply (UPS) for site managers looking to implement decentralised energy schemes. By providing back-up power if utility or grid power is disrupted, batteries can help the site enter a graceful shutdown of site equipment without impairing critical processes, or keep everything online long enough at required loads until power is reinstated. Additionally, the technology can act

ENERGY SUPPLY/STORAGE

as a spinning reserve for sites looking to increase overall efficiency and overall savings, allowing fewer generators to run at a higher load with less fuel consumption. This is especially effective in the data centre sector, which has traditionally been extremely energy intensive and reliant on a stable and consistent power supply. Adding two 1MW battery systems to an 18MW data centre with a gradual load ramp, for instance, could lead to approximately £900,000 in fuel gas and carbon emissions savings over a two-year period.

AFFORDABILITY Even with these benefits in mind, there remains an elephant in the room – affordability. The pandemic has led to many site managers having to do more with less, and with the UK’s energy storage infrastructure not yet able to provide appropriate levels of

power resilience, new approaches must be considered. However, advances in the rental market now makes strategic equipment hire an appealing option, as new battery solutions are becoming available for on-site and grid support applications. These options can allow organisations struggling with capex constraints to avoid the high up-front costs required for a permanent installation. By instead factoring this expense as an ongoing opex cost, companies can make savings while also building the funding required to potentially invest in a permanent solution as the technology matures. Indeed, a further benefit of treating energy storage as an ongoing, hired service in the short-to-medium-term is that it safeguards organisations against the swift progression this particular field is currently experiencing. Because rental battery solutions can be replaced as even

more efficient models are developed, businesses do not run the risk of being stranded with permanent solutions that may become outmoded or comparatively less high-performing over time. In summary, the UK’s growing use of renewable energy sources is to be welcomed, but further energy storage solutions must be implemented if this trend is to continue at the same rapid rate. By looking at options such as strategic equipment hire, companies can continue to decarbonise while alleviating risks such as power disruption without being hamstrung by the prohibitive costs associated with permanent installations. For more information about Net Zero and sustainable energy technologies such as battery storage, download Aggreko’s latest report, ‘Bridging the Gap to Net Zero: Solutions towards the net zero challenge,’ visit: www.aggreko.com/netzero.

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

CHP

THE ENERGY REVOLUTION – WHY BUSINESSES SHOULD CONSIDER GENERATING THEIR OWN ELECTRICITY

ewsflash – businesses like saving money. And yet, too often when businesses implement CHP solutions to supply cheaper electricity, systems are incorrectly sized and therefore they don’t reap the full benefits of the technology. CHP systems take one input, namely natural gas, and turn it into two outputs – electricity and heat. The primary purpose of CHPs is to generate electricity as efficiently as possible. The heat is a secondary output and, in an ideal world, most of this will be used in other applications to maximise efficiency. However, it’s often the case that systems are implemented to match the heat base load for the building, not the electricity base load, which means the full financial benefits are not realised.

CHANGING STRATEGY The key to success is choosing the correct sized unit. When CHP systems are supplied to meet the heat base load, it leads to the system being incapable of fulfilling a facility’s electricity demands because it’s too small. This means it still needs to take significant levels of electricity from the grid to supplement that supplied by the CHP system. See the heat produced by CHP for what it is, an added benefit of the system, not its main purpose. Instead, CHP systems should be supplied to match the facility’s full electricity profile. Only systems that are designed to offset

as much grid electricity as possible reap the biggest financial rewards. Innovative heat and power solution specialists can put the extra heat output from the larger system to use across several applications depending on the facility in question. This can include anything from the pre-heating of raw materials before they are processed to providing cooling through absorption chilling. Electricity usage profiles can be obtained by analysing half hour meter data which is easily obtained from your electricity supplier. Once demand profiles are established, it is a straightforward process to calculate the electricity base load for the building. This information can be used to determine which CHP system is best suited to meet the building’s energy demands. If implemented correctly, CHPs can offset up to 85 per cent of the site’s overall electricity consumption. Appropriately sized CHP systems can offer savings of between 30 and 40 per cent on your electricity bills. On top of the cost saving, there are also additional benefits in terms of security that can be gained by adopting CHP. Because they can operate independently of the national grid when in island mode, producing electricity at the point of use, they can operate even in the event of an outage on the grid. Using automatic switching, the system can be set up to enter island mode automatically so that, in the event of an outage, the system remains energised through the CHP and this switch over is seamless. Unplanned downtime negatively impacts productivity and consumer trust. A survey of manufacturers found that, when they experienced unplanned downtime, 37 per cent lost production time on critical assets. It can also be financial devastating, costing businesses millions of pounds if the outage isn’t fixed quickly. The black start potential of CHP helps

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If I said you could use £12 worth of electricity and only pay £6.50 for it, you’d think it sounded too good to be true. However, businesses that choose to generate their own electricity through combined heat and power (CHP) do just that. Here Luke Worrall, business development manager at heat and power solutions specialist NerG, discusses the benefits of CHP and explains why businesses should change their approach to installing the systems. businesses avoid this by keeping them up and running in the event of an outage. With the cost savings and security benefits, CHP systems offer businesses the chance to revolutionise how they meet their energy demands. To find out more about the benefits, or to book a consultation, get in touch with NerG on +44 (0) 152 271 2131 www.nerg.co.uk

CHP

THE FUTURE OF HEAT NETWORK PLANT ROOMS Pete Mills, Commercial Technical Operations Manager explains why CHPs are becoming less attractive for district heating and what alternatives there are.

HP (Combined Heat & Power modules) have long been a staple of district heating scheme plant rooms across the UK, due to a highly efficient process that captures and utilises the heat as a byproduct of the electricity generated. However, CHP is becoming harder to justify as a future solution based on its carbon impact. The electricity grid has decarbonised much quicker than was imagined even a few years ago and large amounts of renewable energy have quickly come onto the grid. The risk is that any CHP installed now could be in a negative carbon situation in a few years. With the new Building Regulations imminent, for some time we have had a draft release to review (SAP 10.1). This projects significantly reduced carbon factors for grid electricity. CHP will not easily work within this framework, especially as the more aggressive target has already been adopted by the Greater London Authority ahead of the official release of SAP10.2 (as it will be known). There has been some work looking into what actual generating technology CHP would be offsetting and if they would still have a future for district heating schemes. However, it is likely that BEIS will not accept these arguments, although at this stage that is purely conjecture.

WHAT ALTERNATIVES ARE THERE? If CHP is superseded, there are several technologies that are available to take its place. One being heat pumps which many believe could be the sole heat source for a new heat network project. In our view, a more future-proof solution could be a hybrid solution, in this case between heat pumps and peak-load boilers. These can deliver significant carbon savings, whilst ensuring costs are kept under control. Experience has shown that with around 50% to 60% of the peak demand covered by heat pumps, over 80% of the kilowatts can typically be provided through heat pumps.

Heat networks tend to operate below 25% of their peak demand for over half of the year, which is well suited to a heat pump. On the small number of days each year when temperatures are coldest, demand can be taken up by peak-load boilers. If we consider the future energy landscape as well, hybrid solutions with a boiler involved can support even further carbon emission reductions in the future. One of the unique abilities of a heat network is its straightforward adaptation to multiple forms of heat that may become available in the mid to long term, such as Hydrogen gas. Other alternatives include waste heat, which is often cited as the catalyst that sparked the very first heat networks to be built. Using a supply of heat that would otherwise be discarded makes perfect sense; something that has not gone unnoticed by policy makers. We are likely to see more policy moving towards incentivising this valuable resource. However, currently the trend is for smaller unconnected heat networks to be built; not ideal for the use of waste heat that is better introduced into a larger distribution network. Leaving strategic connection points that would aid future hook up to a wider district-heating scheme makes sense and represents minimal capital outlay at the start of a project. If, at a later date an opportunity arises to connect to a much larger district-heating scheme, the transition is a much simpler prospect. However, keep in mind that many larger schemes will have strict guidelines about connection arrangements and in particular the return temperatures that can be accepted. Leaving plant room space for associated

plate heat exchangers and hydraulic control equipment will be necessary.

IN CONCLUSION As the UK moves towards a net zero future, the importance of district heating will no doubt become more and more prominent. Its ability to power whole areas and multiple buildings can already help efficiency levels, however its potential may be even greater in the future. Many cities have already implemented district heating schemes in their regions, which will most likely increase the implementation of them across the country. CHP has been effective to date and will still run efficiently in existing schemes but the technologies discussed, as well as future innovations, will take heat networks to the next level in terms of carbon reduction. One key energy transformation that is looking more and more likely is the decarbonisation of the gas grid to hydrogen blends and ultimately 100% hydrogen. If these can be utilised in heat networks, then the benefits will definitely put us in a good place as we continue our journey towards net zero. Particularly if a hybrid approach is applied. Combined Heat and Power may have been the choice in the past, but a collaborative hybrid one could well be the future. https://www. bosch-thermotechnology.com/

ENERGY MANAGER MAGAZINE â&#x20AC;˘ JANUARY/FEBRUARY 2021

CHP

WHY CHP STILL DELIVERS Cost, efficiency and sustainability benefits can all be realised by CHP in sites with high constant demand for hot water and power, says Mark Gibbons, Baxi Heating’s CHP National Sales Manager.

ew would disagree that this has been a year of enormous uncertainty and upheaval. In the public sector, budgets have been under additional pressure due to a double whammy of COVID-19 related costs and loss of income. For energy managers, the challenge moving forward will be to meet tighter environmental targets while balancing financial concerns. Obvious as it may sound, one of the simplest ways of cutting bills and emissions is to use less energy. Heat is a natural focus for improvement, with retrofit one of the fastest approaches to achieve the savings in older properties. However, as every building will have its own unique requirements, it’s essential to identify the most appropriate solution that will fit the both the demand and the budget. In sites with high, constant demand for high grade heat, a technology like Combined Heat and Power (CHP) can offer energy managers an economic solution to more sustainable heat and power and improved energy security. So how does it work? CHP produces useful heat and electricity at the point of use in a single highly efficient process. Rather than rejecting ‘waste’ heat to atmosphere like traditional power stations, CHP captures it to produce useful thermal energy. This can be re-used either for high grade heating or, increasingly, for cold water pre-heat for domestic hot water production. In this way, it is able to meet a building’s heat demand more efficiently, reducing total primary energy consumption typically by around 30% compared with conventional methods.

FINANCIAL DRIVER Boosting the efficiency savings still further, is CHP’s ability to generate lower carbon on-site electricity at lower gas prices. The operating cost benefit of CHP will depend on the difference in gas and electricity prices. This is often referred to as the ‘spark gap’ or ‘spark spread’ – the wider the spark spread, the greater the return. With gas prices currently at around a quarter the price of electricity, CHP offers an attractive economic option – one that is capable of delivering payback within three years in a well-designed, well-maintained system. Further, onsite generation offers energy managers the opportunity to offset fluctuations of wholesale energy prices, ensuring greater energy resilience and control over energy costs.

LOW NOX, LOW CO² So how ‘green’ is CHP? Classified as a low-carbon technology, most natural gas CHP engines nowadays will emit almost zero CO2 due to the set-up of the engine and lambda sensors. Advanced CHP units are also low NOx. Operating in conjunction with a water heater in a well-designed system, a CHP could reduce NOx emissions by up to 75% compared with a boiler or water heater alone.

GREENING THE GAS Then there’s the future opportunity to switch to a greener fuel. The feasibility of repurposing the existing gas grid to transport green gas is being explored by ourselves and others to offer a low disruption solution towards decarbonising our older building stock. CHP plants could be adapted or produced to operate on alternatives to natural gas, such as hydrogen and bio-methane, reducing or eliminating carbon emissions at the point of use.

HYBRID APPLICATIONS We should consider too applying complementing methods of heat generation, including CHP, in a hybrid system. For example, using lower-cost CHP electricity to power air source heat pumps will multiply the efficiency of the system while neutralising the carbon emissions and reducing electricity costs. Heat networks, which will play an increasingly important role in the sustainable heating policies mix in dense urban environments, can use a range of heat generation solutions. We envisage a design where hydrogen boilers and CHP units provide high grade heat for domestic hot water provision while powering ASHPs for low grade heat.

SUSTAINABILITY BENEFITS Additionally, CHP can be seen as a useful tool in encouraging the

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widespread adoption of electric vehicles, a move considered by many as key to achieving net-zero carbon emissions. Organisations have the option to use this lower-cost electricity to provide electric vehicle charging points for their customers. Providing access to charging points in council-owned leisure centre car parks, for example, would support the national drive to carbon neutrality while helping bolster their own coffers.

CREATING A MORE SUSTAINABLE FUTURE As energy managers strive to make their buildings more sustainable, energy efficiency is more important than ever. Driving down energy consumption and waste in buildings is fundamental to achieving this. Retrofitting CHP offers a real, achievable opportunity to do just that in buildings with high demand for high grade heat in the immediate term, with the opportunity for additional futureproofing. Of course, accurate sizing and a well-considered design are key to achieving the full benefits along with good maintenance and routine servicing. But with early engagement between all stakeholders, and the support of experienced suppliers who can provide technical input and insight, the financial case for CHP in these uncertain times is certainly compelling. Remeha is part of Baxi Heating. Mark Gibbons is National Sales Manager CHP for Baxi Heating. remeha.co.uk/products/chp, info@remeha.co.uk,

RENEWABLE ENERGY

ARE WE REALLY IN A HYDROGEN BUBBLE?

ith one of the most turbulent years on record almost behind us, the Climate Crisis nevertheless remains at the top of the global political agenda. One key enabler for a carbon neutral future is the transition to a green hydrogen-based economy, and at least 20 countries – collectively representing around 70% of global GDP – are proposing hydrogen strategies or roadmaps as key elements of their decarbonisation plans. For example, the UK government recently unveiled a plan to make green hydrogen a cornerstone of its “green industrial revolution”, while the EU’s threephase hydrogen roadmap announced earlier this summer envisages up to €500bn being invested in this transition by 2050, potentially employing up to one million people. The incoming US administration is also expected to reverse the current administration’s policies to invest significantly in clean energy infrastructure over the next four years.

KEY COMPANIES AT FOREFRONT OF GREEN HYDROGEN TRANSITION Clearly, there is global momentum towards green hydrogen investment. With the key technology underpinning the transition being the hydrogen fuel cell that silently generates electricity from hydrogen, fuel cell makers such as AFC Energy, Ceres Power and ITM Power are some of the listed companies at the forefront of this transition. Yet while fuel-cells are often considered a green technology, almost all of the hydrogen produced globally is currently done so through techniques based on fossil-fuels. Therefore, the widespread deployment of electrolysers (that generate hydrogen from water) running off surplus renewable power is needed to ensure enough green hydrogen in the future, and electrolyser manufacturers such as ITM Power, which is soon to finish construction of the world’s largest electrolyser factory in Sheffield, stand to be central players. Ceres Power has also announced that it can reverse its fuel cell process to create an electrolyser to produce green hydrogen from renewable electricity.

SKY-HIGH VALUATIONS…OR NOT? IS THE TRANSITIONING OF GLOBAL ENERGY CREATING A SUPER CYCLE? Indeed, many pure-play hydrogen companies that are set to gain from growth in hydrogen demand have seen their shares rocket over the past year on the back of government pledges such as the EU’s roadmap. Over the past year, ITM Power is up c.370%, Plug Power is up c.700% and French electrolyser developer McPhy is up an amazing c.820%. At the same time, major industrial companies such as Cummins and

Bosch who have realised that they need to embrace fuel cell technology if they want to prosper are expanding into hydrogen and taking stakes in relevant companies. USbased Cummins made its first move into the renewable energy sector last year when it acquired fuel cell and electrolyser technology manufacturer Hydrogenics. In the same year took a minority investment in Loop Energy, a fuel cell electric range extender provider, and signed a memorandum of understanding with Hyundai Motor Company to collaborate on hydrogen fuel cell technology. Ceres Power has also attracted big names such as Bosch as a partner and 18% shareholder alongside Waichei which owns 20%. Large, global businesses are shifting their focus to a cleaner, greener source of energy but this has only just begun. ITM Power has attracted an investment from Linde/BOC as well as Italy’s biggest gas grid company Snam. The list of partnerships with hydrogen economy companies is expanding at a rapid pace and we expect this to continue through to deployment.

REASONS FOR CAUTION? OR IS THERE MORE GAS IN THE TANK? Investors have witnessed a number of short-lived hype cycles surrounding hydrogen technology in the past, with the most recent being in the tech bubble of the late 1990s. Then, interest in hydrogen companies took off after major automakers started to invest in fuel-cell technology. This powered Ballard’s share price to a record high of C$165.05 and a market cap of $20b in September 2000, before plunging below C$15 two years later after consumer demand failed to materialise. Today, many of the companies set to benefit directly or indirectly from increased hydrogen demand are still at an early stage of revenue development and few are consistently profitable. Many will also require significant additional funding from the big industrial companies already mentioned, which from an investor point of view will dilute existing shareholder holdings.

APPLICATIONS ACROSS A RANGE OF SECTORS, EVEN IN NEAR TERM Nevertheless, a number of niche applications mean there are still opportunities for savvy investors that are aware of market dynamics. This is because while cheap renewable power combined with battery storage looks set to address sections of the transport and power sectors, important gaps remain in various sectors that hydrogen is well suited to fill. ‘Hard to reach’ sectors such as steelmaking, residential and commercial heating, long-distance road freight, shipping and aviation, have no obvious, low-cost,

Chris Stebbings, Director, LGB & CO says opportunities remain for savvy investors. convenient alternatives to fossil fuels, and collectively account for approximately 34% of global energy consumption. Hydrogen’s high energy to mass ratio and low losses during storage and transportation make it an ideal fit across these sectors. Before the widespread availability of green hydrogen, there is also scope for fuels cells to be used in off-grid generation, distributed generation, and backup power. One specific vertical where fuel cells could provide the solution is EV charging as highlighted by AFC Energy’s recent partnership with ABB. Ammonia (NH3) provides the source of hydrogen for AFC’s fuel cell which is readily available and therefore means that deployment for EV charging is available now.

OUTLOOK – NO LONGER A CRYSTAL BALL There have been a number of false starts for fuel cell stocks over the last 40 years and yet the concerns have been based around a number of issues including; hydrogen, efficiency of the fuel cell, costs of the fuel cell, the incumbent oil majors allowing this transference from hydrocarbons to green energy to happen and finally government support. The hydrogen issues centre around; the safety of hydrogen, the availability of pure enough hydrogen and the lack of a hydrogen infrastructure, yet these concerns are being answered. The fuel cell’s efficiency has evolved dramatically over the last decade and costs are falling materially (as much as 90%) as partnerships like Ceres/ Bosch move into the mass production phase. The incumbent oil majors have been decimated by governments around the world announcing lower and lower carbon emission targets on shorter and shorter time frames which ultimately forces them to be investors in hydrogen economy companies. So, despite this uncertainty, there seems to be a steady shift towards green hydrogen being a major part of the energy mix. Recently published forecasts from the EU, the Hydrogen Council and Bloomberg New Energy Finance suggest hydrogen could grow from 2% now to 13–24% by 2050. Many listed companies are bound to be winners along the way and, with the same economies that embraced batteries now embracing fuel cells as the next major technology they need, plenty of opportunities remain for investors, even with valuations being where they are today. www.lgbco.com

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

RENEWABLE ENERGY

A GUIDE TO THE PPA PROCESS –

ARE YOU READY TO MAKE A LONG-TERM COMMITMENT TO ZERO CARBON? Paul Orstavik, Lead Originator at World Kinect Energy Services, provides expert insight into Power Purchase Agreements (PPAs), the benefits, the different types, and how they can help the public sector achieve its zero carbon emissions.

ustainability and carbon reduction goals are being prioritised in many public and private organisations, with the UK government’s net zero target edging closer. The pressure is on for public sector organisations to consider ways to innovate to hit the net zero targets by the 2050 deadline. Achieving net zero for many public sector organisations will require a well thought out strategy, long-term investment and will involve financial implications. Forward-thinking decision makers will need to be open to new techniques, products, and markets. The COVID-19 pandemic has certainly offered an insight into how the world is impacted when there is a reduction in emissions and has acted as an accelerator for a focus on sustainability, leading to many public sector organisations to consider the impact of their activities on the environment. For those decision makers in the public sector looking to accelerate their renewable energy goals, Power Purchase Agreements (PPA) are a viable option and will help them achieve their long-term sustainability goals. In recent years, there has been an increase in demand from organisations committing to long-term solar and wind PPAs to help them achieve 100% renewable energy.

WHAT IS A PPA? In its simplest form, a Power Purchase Agreement (PPA) is a contractual agreement between renewable energy buyers and sellers. Both parties come together and agree to buy and sell an amount of energy which is or will be generated by a renewable asset or provider. When committing to long-term procurement of renewable energy from a specified renewable asset, the buyer provides the renewable asset with a stable income projection, which helps finance the renewable development. The renewable buyer can then claim additionality, to be responsible for supporting new ,

expanding renewable generation sources. Investing in a PPA helps demonstrate your company’s commitment to climate change, that you are responding to investor/ consumer demand and helps towards meeting your carbon reduction targets. A PPA can also help reduce energy expenses, diversify energy supply, and help achieve long-term stability. PPAs, however, are usually a longterm agreement lasting between 10-15 years, compared to a normal energy contract that lasts 2-3 years. Some do go on for longer, especially solar projects. The longest PPA to date is 28 years. To invest in a PPA, you need to be ready to commit to the long-term, however, taking the risk will lead to significant benefits within just a few years. As banks become more accustomed to what they are lending, we may see PPA contracts becoming shorter, maybe down to 7 years. The cost of renewable energy is also becoming significantly less expensive since 2010, so now is a good time to consider PPAs and invest.

BENEFITS OF PPAS Power Purchase Agreements (PPAs) can be complex, and many businesses can be put off by the lack of understanding and longterm commitments, however, the benefits will outweigh the substantial commitment, especially with the looming net-zero deadline. Here are 6 reasons why you should consider investing in a PPA: 1. Requires little to no upfront cost 2. Reduces exposure to energy price volatility 3. Helps organisations achieve energy targets and contributes towards hitting net zero emissions 4. Avoids the rising price of energy certificates and retail margins 5. Demonstrates an organisation’s commitment to sustainability to stakeholders 6. Diversifies an organisation’s energy supply.

TYPES OF PPAS: ONSITE V OFFSITE There are two types of PPAs available: onsite and offsite, both of which come with their own benefits and can help mitigate your Scope 2 emissions.

ONSITE PPAS An onsite PPA is an agreement to purchase renewable energy directly from a project developer that uses the organisation’s own location to generate renewable energy. For example, this could be a Council

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

building installing solar panels on site. By doing this it can protect against rising energy costs and is a visible commitment to sustainability with zero upfront cost for setting up. Usually, in exchange for ‘leasing’ your space, the organisation receives a fixed renewable energy price and safeguarding against a volatile market. However, not all organisations will have the available space to accommodate the installation of an energy project and it is a long-term commitment.

OFFSITE PPA An offsite PPA is an agreement to purchase renewable energy from an external supplier. Offsite PPAs tend to be beneficial for organisations that do not have the capabilities to set up an onsite energy project. There are numerous benefits to offsite PPAs, including no upfront cost to your organisation, a wider variety of renewable energy options to choose from and it can provide sizeable cost savings. Decision makers must consider several factors before deciding on an offsite PPA: • They could be restricted to competitive (deregulated) electricity markets depending on location • The availability of offsite PPAs is limited to customers with large electricity loads and investment grade credit. • They are also open to market price variation, balancing, and other potential project issues.

ARE YOU READY TO INVEST LONG-TERM? As well as carbon offsets and investing in renewable energy certificates, PPAs are an alternative solution to accessing renewable energy and reducing your carbon footprint. For public sector decision makers, investing in a PPA is a great way to access renewable energy at a reasonable cost, showcase your commitment to sustainability to the public and also to central government, and can bring longterm energy cost stability and predictability. Public sector organisations that fail to invest in sustainability and carbon reduction will leave themselves at risk not only of paying higher costs in the long-term, but potentially facing backlash from the public as environmental pressure intensifies and governments enforce new legislation. For more information or to explore if a PPA is a viable option for your business, go to https://world-kinect.com/consideringpower-purchase-agreement

RENEWABLE ENERGY

A COMPARISON BETWEEN SOLAR ENERGY AND GEOTHERMAL ENERGY Our planet needs help. And it needs it fast. Fossil energy has a deep impact to our environment, and also it comes to an end. Natural resources are limited, as we are aware. So we begin to look for alternative energy sources. The sun and the earth are two of them.

SOLAR ENERGY Probably better known as geothermal energy, solar energy is used in a huge quantity of houses. We all already have seen solar panels on the roofs of several buildings. Not only in the very south of Europe, but also more and more in our parts of the world solar energy becomes more common. Installation formed by solar panels or shingles that are fixed on the roof, solar energy is caught and piped through a system of small tubes to the heat pump which extracts the heat to lead it to the water reservoir. Also there exists the possibility to win electric current out of the sun light. The efficiency of solar panels for electric use, that are called photovoltaic panels, over the last three decades had improved significant. Today’s panels are even thinner and more durable as panels of the first or second generation. New materials and scientific research makes possible that the last generation has nearly the double efficiency and is even cheaper than the first panels, which were brought to the market in the late Nineties. With solar panels of nowadays you even can obtain warm water or electric energy in cloudy days. That gives them a sense even in northern countries with cold and rainy climate. Of course we have to admit that efficiency will not be the same as on sunny days.

GEOTHERMAL ENERGY Still there are not too much buildings that take advantage of an neverending energy, which our earth offer: Geothermal energy. What does this mean? The core of mother earth is made of pure heat. Magma flows under the earth surface and reaches temperatures close to our sun’s surface. Human mankind began to take advantage of

these natural energy source decades ago drilling deep wells into the earth. Hot underground water comes out as steam to move turbines to drive large generators producing electricity. Today geothermal energy also is used to heat our houses. The principle is the same, just in a smaller scale. Pipes are drilled from a few feet until 300 feet in a case of an single family house. At 30 feet temperature reaches approximate 50 degrees Fahrenheit. This temperature is stable during whole the year, even at strong winter time, and guarantees enough temperature difference between underground and surface temperature to drive a heat pump. Both, electricity and heating water can be produced by geothermal energy. The big advantage of geothermal energy is that it is completely independent of weather conditions such as sunny or cloudy days, but also independent of season. Almost the same temperature can be found deep in the earth. Some owners prefer the installation of earth collectors, few feet under the surface, but covering a large square, especially if permits are difficult to get because of water protection areas, or to reduce the costs. But they are less efficient as drill wells and much more surface is needed to bring the fluid to the correct temperature.

THE DIFFERENCE BETWEEN SOLAR AND GEOTHERMAL ENERGY One comes from the sky, the other from the ground. As easy it sounds, as easy it is. An architect or energy planner should be consulted, because each place and each building project is different. It depends the surrounding, the climate conditions, the size of the property and

last but not least the budget, which solution would be the best in each case. Each of the two energy sources are extremely environmentally friendly, as they are renewal energy sources. It depends the circumstances which one matches better your requests. Solar energy systems are highly developed and there is a wide range of different sizes and types on the market, for each situation you can find your perfectly fitted solution. If there are no problems or restrictions to cover parts of the roof with solar panels or collectors, even in the far north solar energy works efficient enough to win heating or electric energy. In some cases, especially on old buildings or in natural areas, solar panels are not allowed. Here geothermal energy can be a perfect solution to take advantage of renewal energy sources, though. Also in extremely cloudy and rainy climate zones geothermal energy works stable, continuously producing heating or electric energy over the whole year. However, the very best solution is to combine both renewal energy sources to heat houses and always dispose of enough natural energy to heat and drive the building.

ABOUT THE AUTHOR Following nature’s example, Baufritz has been planning and constructing ecologically sustainable buildings for over 120 years. High-quality, pollutanttested building and insulation materials are used to create individual architect’s houses that protect people and the environment. www.baufritz.com

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

RENEWABLE ENERGY

WHY THE THAMES ESTUARY’S FUTURE WILL BE HYDROGEN-POWERED

he UK has a net zero carbon pledge by 2050, and it is recognised that hydrogen has a significant role in achieving this goal. Most recently, the Prime Minister’s announcement for a 10-point climate plan to reach net zero included having five gigawatts of low-carbon hydrogen energy production capacity by 2030. The Thames Estuary presents a unique opportunity for investment in Hydrogen Infrastructure at scale like nowhere else in the UK, and as such could play a vital role in the Green Recovery, supporting a de-carbonised London and keeping the UK on track towards a net zero future.

WHAT ARE THE OPPORTUNITIES: Situated next to one of the world’s leading cities that has strong targets around zero emissions, with a large demand on its energy and transport infrastructure, the Estuary can present a critical mass in its shift towards a de-carbonised future at scale, which will become highly attractive to investors. We also have critical mass that will enable adoption at scale, as well as large opportunities in air and port side uses, public transport with the TFL bus fleet, and other municipal uses as well as a significant logistics sector to service. We already have locations within the Estuary where progress is being made. A transition to incorporating hydrogen in the domestic gas supply and new plants to manufacture hydrogen for public transport are coming forward. With large brownfield sites and an existing petrochemical infrastructure, the time is right to put in place a plan to transition towards a low, and ultimately zero carbon future. We have the ingredients (the sites, access to water, the desire) and the opportunity (a clear shift in demand) to create a compelling case for investment in hydrogen in the Thames Estuary. As well as the environment benefits, there is an opportunity to unlock £18bn GVA and create 75,000 new jobs in the Thames Estuary region alone. This is key for the levelling up agenda and promoting economic growth postBrexit and post-Covid. In addition to upskilling in the immediate future, there are also longerterm positive impacts as future generations will be inspired to build on the momentum that is already in motion in the Estuary, and propel the nation towards net zero. There are a number of emerging areas of clear demand: • Tightening emissions limits in London will create a push to shift public transport to non-carbon fuels. TfL operate 9,600 services across the city carrying 1.8bn passengers per annum • Opportunities to explore hydrogen to support river transport for both passengers and freight, and also portside uses

• Introduction of hydrogen to domestic gas supply and development of a hydrogen transmission system • Explore how industry can transition to hydrogen and other low carbon energy sources

WHY HYDROGEN? Hydrogen has a significant role to play as an alternative to fossil fuels in a range of applications such as transport, heating and industry. Hydrogen power enables you to make more use of renewable energy sources. For example, the Estuary itself has a number of wind farms to reduce CO2 and provide a renewable alternative to fossil fuels. However, when the demand is present for energy, that is not necessarily the precise moment when the wind is blowing, and therefore a back-up supply is required. Hydrogen offers a solution for any access demand on the basis that like petrol, and unlike wind, it can be stored and deployed at a later stage. This is not to say hydrogen is a silver bullet for decarbonisation, but undeniably it has a significant role to play in promoting energy efficiency across many verticals. By comparison, the limitations of batteries are well documented, and it is clear they are not suitable for all modes of transport. The size and weight of even the most advanced batteries are too big and heavy for the power output required for public transport vehicles. Moreover, the problem remains of how to safely recycle batteries without doing damage to the environment and adding to air pollution when melting them down. Alternatively, hydrogen is easy to store and causes minimal harm to the environment by way of emissions. Research by our colleagues at The University of Kent has predicted that there is an estimated 2050 regional demand of 0.8 million- 1.25 million tonnes of Hydrogen per annum across the Estuary Region.

NEXT STEPS: With this unique demand case for positive environmental innovation and change, the Thames Estuary Growth Board held its first public summit, comprised of leading experts, researchers and stakeholders, to devise a plan for unlocking the potential of hydrogen power in the Thames Estuary. This was attended by the National Grid; Rise who are developing a green hydrogen fuel source for buses in London; and Edwin Pang, Director of Arcsilea, who talked about the Port of London Authority’s (PLA) vision for hydrogen power; to name a few. Following the event, the Growth Board is drawing up a roadmap which will set out their journey to developing a hydrogen

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

Kate Willard OBE, Estuary Envoy

ecosystem, but there are clear next steps that have already been identified: Establish demand – Hydrogen power is expensive, but economies of scale will bring this down over time. We need to establish the size of the market and the key points in time for investment. Initially though, Government policy, incentives, and pricing mechanisms will be essential in encouraging the transition to hydrogen. Before the wind industry was fully established, the UK Government provided a high level of support for infrastructure with pricing mechanisms, which accelerated the road to economies of scale – this has happened for solar and wind, and it is something we need for hydrogen power too to enable prices to drop and inspire widespread adoption. Identify potential investment sources and create a market proposition – Secure initial investment to prove the concept and build confidence. We need to develop our investment and opportunity road map so that we are able to articulate our ambition and direction to enable us to develop our investors. Establish Credibility and Confidence – A key part of adopting new technologies will be enabling businesses to see how the new technologies can work for them. Because of our unique geography, the Estuary provides a good place to do real-life demonstrations and testing of hydrogen buses for example. It is all very well having the prototypes, but the only way you build consumer confidence if through real world application. Enable Research – Establish where the main areas of research are and develop the Estuary as a test bed for implementation. Develop Supply – In the very short term, we may need to rely on importing hydrogen from elsewhere because the demand in early stages may not be sufficient for investment. Identify Manufacturing Infrastructure – Hydrogen manufacture requires a significant amount of energy. Electrolysis is the least polluting method, but only if the electricity used comes from renewable sources – as such, we will need to significantly increase our generation of electricity from renewable sources. Transition Technologies – We will need to consider the end users and how they may transition to a fully carbon free approach. The benefits of a hydrogen-fuelled future are vast. We have the skills, commitment, passion and ambition to make this a reality. Our summit was a great step forward, now, we are going to see it through. https://thamesestuary.org.uk/

RENEWABLE ENERGY

BIOENERGY – ADVANTAGES AND DISADVANTAGES Priscilla Hall, Partner and Head of Green Energy at national law firm Clarke Willmott LLP, shares her thoughts on the advantages and disadvantages of bioenergy as the Government develops its green energy strategy.

hen people think of energy being created from gas, often it is placed in the same category as coal in terms of harmful and polluting energy generation. Sometimes the preconception is that the creation of energy from biogas is also a nongreen energy source and damaging the environment. To respond to this preconception, it is important to understand a little more about biogas along with the some of the advantages and disadvantages of bioenergy. Biogas is a naturally occurring gas predominantly consisting of methane and carbon which is generated from organic matter. This matter which could include agricultural waste, sewage, food waste and plant material is processed inside a closed system aided by microorganisms, a process often referred to as anaerobic digestion. Once the biogas has been sufficiently treated it is then transferred to a combined heat and power unit for the creation of renewable energy to be used in a variety of formats. With an increasing worldwide population more waste from both livestock and humans will be generated regardless of eating habits. In fact, the World Economic Forum is predicting the global population will be 9.7 billion in 2050 compared to today’s global population of 7.8 billion. As a result, there will always be a continual source of base material, providing a steady source of reliable base load electricity, which can be a challenge for other renewable sources such as wind and solar. Therefore, bioenergy is certainly is supporting the challenge of achieving NetZero. From an environmental perspective, the benefit of anaerobic digestion plants is also worth noting. It can help remove harmful elements from the waste products which might contaminate

water supplies, reduce harmful pathogens in slurry along with reducing odours which can improve air quality particularly close to high density population areas. We should also not forget the valuable by-product of the process, the manufacturing of compost and fertilizer which could be an incremental income source for the producer. The principal challenges for anaerobic digestion centre around scale and time. The initial upfront cost of construction and follow on operating expenditure for digestors can be expensive but can be overcome through professional advice and support. It is fair to say that most farms which set up an anaerobic digestion system tend to be more substantial, have a significant herd of cows and or access to plentiful plant waste. Depending on scale storage considerations need to be taken in to account along with the time needed for operations and maintenance which can be considerable. Taking into consideration all aspects I would conclude that there is a case for development of anaerobic digestion activity. As always, each opportunity should be treated on its own individual merits in terms of economic viability and environmental impact, with impartial advice being sought. It will be interesting to see how bioenergy is incorporated into the Government’s green industrial revolution combined with the longerterm impact of Brexit for the agricultural sector. Over the coming weeks and months more details will emerge from the Government and I look forward to updating clients accordingly. Our work relating to bioenergy is varied and extensive with our specialist and nationally rated cross-disciplinary team of solicitors having been involved

in the green energy and agricultural sectors for many years. One example of our work includes acting for a client developing biogas plants in the UK, which has included advising them on site acquisition, option agreements, freehold transfer and long lease, all due diligence aspects, advice in relation to feedstock agreements, finance arrangements and construction documentation. We also advised on connection requirements, as the plants are gas to grid, as well as including CHP units to enable the generation of electricity. In addition, we have supported clients funding anaerobic digestion plants involving negotiating project finance documentation including facility agreements, debentures, share charges, security assignments direct agreements, shareholder agreements and associated documentation. It addition advising clients in relation to the underlying site documentation and the negotiation of variations with the landowners involved in order to satisfy the funders requirements. Overall, we deliver seamless sectorfocused legal advice on all aspects of energy generation by providing a ‘one-stop shop’ for our clients including operators, contractors, investors, farmers landowners and local authorities, many of whom we have a long-standing relationship with and would be happy to have a conversation in how we can help and support your ambitions. Clarke Willmott is a national law firm with offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton. For more information please visit www.clarkewillmott.com

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

RENEWABLE ENERGY

The energy system is undergoing unprecedented transformation, fuelled by factors such as technological developments, geopolitical shifts and environmental concerns. According to the World Economic Forum, decentralisation is one of the key trends that will accelerate the transition to sustainable energy supply. Decentralisation is often referred to as ‘energy democracy’, as it aims to increase popular participation while advancing renewables as the new source of energy. Here Matthew Stone, chairman at energy decentralisation experts Nextgen Nano, explains why decentralisation will transform the energy sector. 44

EMPOWERING SUSTAINABLE ENERGY WITH DECENTRALISATION

n effective energy transition must integrate the three main faces of the energy triangle: environmental sustainability, security and access to resources and economic development. More than 860 million people in developing and underdeveloped countries lack access to energy, according to the World Economic Forum findings, meaning that the demand for secure and affordable power is increasing. At the same time, the findings suggest that people in those countries can ‘leapfrog’ to the final stage of the energy transition, without experiencing the damaging effects of traditional energy. One viable way to do so is through decentralisation and implementation of innovative technologies. Decentralised energy is generated close to where it will be used, rather than at an industrial plant that is then sent through the national grid for distribution. Decentralised systems

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

typically use renewable energy sources, such as combined heat and power (CHP) biomass and wind or solar power. This contrasts with conventional energy that is generated by burning fossil fuels at a power plant and distributed directly through the national grid. Power is generated continuously, even after demand peaks, resulting in transmission losses, therefore making it a much less efficient and more polluting process. Furthermore, centralised energy is less reliable and prone to unexpected power failures. The benefits of decentralisation are numerous, with perhaps the most obvious being that customers take over control of the energy and the sources they use. Customers become producers of energy, or prosumers, active actors in the energy sector. With new technology, prosumers will be able to make choices around their energy usage, something previously only available to electricity suppliers.

RENEWABLE ENERGY

For emerging economies, this could prove a steppingstone towards more independently sourced energy, which would decrease the reliance on Western imported resources. It would also open the way for the public to begin inputting into decision making on implementation design and policies. A localised energy source could also help to build the citizens’ trust as local officials have a better knowledge of local conditions and are better positioned to respond to local grievances. A decentralised energy industry could transform centralised infrastructures into small businesses, leveraging the shared economy to create more circular energy systems and create more personalised solutions for consumers. Such a system aligns public expenditures with local priorities to improving management incentives and to improve accountability to users. While decentralisation does not promise to end poverty in developing countries, it has the potential to improve local conditions through increasing the extent, efficiency and cost effectiveness of basic services. These conditions are reinforced by the falling costs of solar photovoltaics

(PV) and the rapid advancement in energy-storage technology, making cutting edge technology affordable and available to emerging economies. Localised energy is also more renewable, which helps reduce carbon emissions significantly. In recent years there has been a surge in demand for renewable energy, particularly solar energy. Solar power is now the cheapest source of energy available according to International Energy Agency (IEA), with growing popularity for photovoltaic (PV) panels. Global PV capacity has grown from around five gigawatts in 2005 to approximately 509.3 gigawatts in 2018, according to Statista. In 2019, more solar PV capacity was added than all other renewable sources combined, with a total of 116.9 gigawatts. As a UK-based company leading research into organic PV (OPV) technology, Nextgen Nano is already revolutionising the energy sector with its PolyPower® technology, which has the potential to generate record efficiencies in the global OPV market. Guided by the team’s vision of the ethical use of nanotechnology, PolyPower combines earth-friendly biopolymers with cutting-edge nanotechnology to produce

low-profile, flexible,transparent OPVs with the potential for high efficiency. This technology aims to further decentralise energy production and consumption from its current market use. It seeks to go beyond conventional applications in energy grids, opening new markets such as electric vehicles; next generation motor and marine vessels; planes and drones and the internet of things. A more democratic type of energy is increasing in popularity worldwide. Decentralisation allows customers to be fully responsible for their energy usage and generation. Innovations in solar energy like Nextgen Nano’s alongside other renewable energy sources hold the key to unlocking the potential of emerging economies and societies, without the intrinsic damage traditional energy production and infrastructure wreaks on the natural environment. With innovative technology at hand, the future of energy is bound to be more sustainable and people oriented. To find out more about Nextgen Nano’s innovative technology and solutions, visit the website. http://nextgen-nano.co.uk

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ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

DRIVING THE FUTURE

IS HYDROGEN A HOPE OR HYPE SOLUTION? Hydrogen versus electrical vehicles on the UK’s road to greener transport

rime Minister Boris Johnson has announced further investment of hydrogen technologies, while new funding initiatives for energy efficiency and electric vehicles (EVs) are also in the pipeline. But how does hydrogen compare with other green energy alternatives? Here Simone Bruckner, managing director of power resistor manufacturer Cressall, investigates the pros and cons of hydrogen for the automotive industry. Recent hydrogen vehicle developments have given hope to the idea that hydrogen will one day “dominate” the market. However, for now, it seems that competing battery electric vehicle (BEV) technologies have taken pole position as the technology that could remove fossil fuels from our roads. Why is hydrogen falling behind alternatives, like BEVs?

A CLEAN SOLUTION? To power vehicles, energy-dense hydrogen is stored in a fuel cell. Using hydrogen and oxygen as power, the fuel cell produces water, electricity and heat, without creating any emissions, other than water vapour. Hydrogen fuel has many benefits, offering a slightly better range and a more promising consumer uptake than BEV alternatives. This is mainly because vehicles will only need to adjust to using a different kind of gas and they can be refueled in times comparable to fossil fuel powered cars. As with all new technologies, there remain some barriers to hydrogen adoption. One obstacle to the widespread adoption of hydrogen fuel cells is that the technology requires an entirely new charging infrastructure. Another issue that throws our hydrogen readiness into question is the current price point of hydrogen vehicles. Paired with the needed infrastructural developments, the future could be hydrogen, but it

is certainly not the present. Hydrogen’s water-only emissions may seem like a green alternative, but sustainability still poses problems. Currently almost all the hydrogen sold in the UK is produced by splitting it from natural gas, which is costly and emits carbon dioxide (CO2). However, this problem can be tackled by capturing the CO2 during hydrogen production, then ‘burying it’ with carbon capture and storage. But that will drive up costs. The alternative entails using surplus renewable electricity to split hydrogen from water using a fuel cell, offering a cleaner yet more expensive solution.

AN ELECTRIC DREAM BEVs offer their own set of benefits. Electric motors can deliver torque quickly with almost instant acceleration, making vehicles quicker to start. Charging infrastructure is also far more developed than hydrogen refuelling capabilities, with more than 18,000 charging devices currently dispersed across the UK. As BEV uptake increases, with a robust charging infrastructure already in place, it will be wise to continue investing in EV technologies while driving forward with hydrogen technology.

ENERGY MANAGER MAGAZINE • JANUARY/FEBRUARY 2021

HIGH-TECH COMPONENTS In addition to battery technology, resistors also play an important role in EV efficiency. When an EV’s battery is full, the vehicle must rely on its mechanical friction braking system to slow the vehicle. When slowing the vehicle, it is beneficial to use a resistor to discharge the excess energy. Not only is the resistor useful in the event of an electrical fault, it also lowers servicing costs due to reduced wear on the friction braking system. The energy dissipated during dynamic braking into the resistor can also heat the vehicle’s cabin, reducing the requirement for electrical heating, which places an extra load on the battery. Cressall produces the EV2 resistor, a liquid cooled modular resistor with a 25 kilowatt (kW) rating that can be mounted outside or even underneath the vehicle, making it ideal for both small electric cars and larger forms of transport. While the UK looks forward to the benefits of hydrogen, much has still to be done to make it a commercially viable fuel. Meanwhile, competing technologies like BEVs, paired with other high-tech components like advanced resistors, can continue to drive the automotive industry’s green revolution forward. www.cressall.com

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