Energy Manager Magazine May 2023

EQUANS LAUNCHES ‘SMARTR’ DIGITAL OFFER IN THE UK TO DECARBONISE THE BUILT ENVIRONMENT

Equans, has announced the launch of a new advanced digital platform that will drive efficiencies and help accelerate decarbonisation efforts across the built environment.

The Smartr platform connects and integrates data from across a building or estate to provide a complete overview of a sites performance, allowing for faster and better decisionmaking. The platform provides active, meaningful insights through Smartr Connect – a secure cloud-based remote monitoring solution that optimises and controls a building’s energy and carbon performance.

Smartr gives users the power to control costs with remote management, diagnostics and asset integration, increase productivity with flexible and efficient working practices, and use all-in-one reporting analytics to accurately assess progression towards sustainability goals. The system helps to connect people, places and technology, providing a seamless experience for building users, owners and facilities managers. In addition, the Smartr platform also provides integration of a wide selection of soft services, such as room booking, visitor management, smart parking, building access and wayfinding. With un-optimised systems in

buildings typically wasting more than 20% of their energy consumption through poor configuration and scheduling that is not in line with operational requirements or environmental conditions, the Smartr platform can provide significant energy and cost savings.

By using the Smartr platform, building owners and managers can also look at the bigger picture, make better decisions faster, spot opportunities for automation and improved control of systems – and deploy remote fixes. By making data analytics intuitive, it enables proactive action to better control energy which can be enhanced further by use of machine-learning and AI (Artificial Intelligence).

Smartr provides simple scalable cloud, mobile and IoT tools to all sectors in an efficient SaaS business model. It is just one of the offers available from ’Equans Digital’, which was launched in 2022, to help customers develop their performance and accelerate their digital transition. Equans Digital brings together a global network of over 9,000 specialists to implement these innovative solutions, with combined

revenues of over €1.5 billion.

James Graham, Divisional CEO for Equans UK & Ireland, said: “The challenges faced by large estates are growing – from the push of soaring energy costs to the pull of net zero targets, staff wellbeing and sustainability commitments. This requires a step change in how we manage our business and the built environment, enabled by the Smartr platform.

“The UK must decarbonise buildings across every sector and the appetite for this technology is strong, so we have every confidence in the launch of Smartr. By using Smartr, customers can improve their environmental impact while maximising efficiency, helping them to meet their environmental, social and governance (ESG) goals and obligations.” www.equans.com

University launches new Sustainable Water Management MSc

The University of Aberdeen has launched a new Masters programme in Sustainable Water Management, building on its world-leading research to prepare graduates for a career in the globally vital sector.

Last month’s UN 2023 Water Conference highlighted international efforts to improve the way water is used, consumed and managed, all of which are key aspects of the new programme which will provide the skills and knowledge required to solve complex water management issues including:

• water security

• impacts of climate and land use change on water resources

• flood risk

• water pollution

• maintaining ecosystem services

• related management approaches

Running over 12 months (or 24 months if studying part-time), the MSc is led by the University’s School of Geosciences which is internationally renowned for its water resource research. Leading experts from the School will provide input and teaching on the programme.

Students can choose from three distinct pathways based on their individual interests, with the opportunity to focus on technical and environmental science skills, the socio-economic aspects of sustainability, or a combination of both.

The MSc contains a strong

interdisciplinary element, with opportunities to develop a complete understanding of water management in relevant areas including water science, policy and law.

Programme Leader Dr David Haro commented: “Sustainable water management requires technical expertise and innovation, but also an understanding of the social, economic, commercial and political aspects of sustainability.

“We’re delighted to play our part through the launch of our new Sustainable Water Management MSc, which will provide graduates with the skills they need to make a real contribution in this important and growing area.” www.abdn.ac.uk

...RELY ON POWERSTAR

NEW REPORT HIGHLIGHTS 5 CHALLENGES AFFECTING ENERGY SECURITY FOR UK BUSINESSES

Vattenfall Networks, the electrical networks and infrastructure specialist, has mapped out five major developments set to affect electricity connections and provides actionable measures for UK businesses to prepare for the challenges ahead on the path to net zero.

Demand for power is increasing dramatically and expected to double – or even triple – by 2050 in order to decarbonise the economy. ‘Energy security in an increasingly electrical world’ explains what businesses can do if they discover there is not enough capacity in the local grid to meet their electricity demands, or that bottlenecks in the application process for new grid connections will cause delays to production and decarbonisation schedules.

If the UK’s electricity networks are to meet the increased demands for electric fleets, heat pumps and net zero industrial processes – whilst maintaining secure supplies of electricity – significant reinforcements and upgrades will be required throughout the transmission and distribution networks, as will businesses’ own private wire networks.

Vattenfall’s report highlights the options and the benefits of partnering with an Independent Distribution Network Operator (IDNO), who offers an alternative route to connect to the electricity grid, contributes to the costs of network upgrades by investing their own funds, and can reserve grid capacity for free on behalf of their clients.

Likewise, for Private Wire Networks operators concerned about the responsibility of upgrading ageing infrastructure or lacking the required funds, Vattenfall’s report details how new models for energy infrastructure management, like Power-as-a-Service, provide capital funding for upgrades, renewable energy systems, and energy efficiency improvements, as well as removing the risks associated with the ongoing maintenance and operation of complex private wire networks.

Suzanna Lashford, Business Development Manager at Vattenfall Networks, said: “It doesn’t matter what your business does, everyone will need more electricity to reach net zero. But it is vital to start mapping out your transition now to secure access to power, avoid downtime, and loss of revenue from power outages. Our new report provides expert insights and offers UK businesses solutions for the challenges emerging in the energy sector, to help them to plan for net zero and ensure security of supply.” https:// network-solutions.vattenfall.co.uk/

BUSINESSES BACK HYDROGEN TRIALS TO ACCELERATE NET ZERO AMBITIONS

Most senior business leaders are planning to adopt hydrogen as part of their energy improvement strategies, according to new research from Centrica Business Solutions.

Three quarters (77%) reported that they had already or would implement hydrogen-ready technologies such as combined heat and power (CHP) units as they seek to optimise

energy consumption and reduce carbon emissions. More than a quarter (27%) are planning on doing so in the next two years.

Almost one in ten (8%) said they had already installed hydrogen-ready CHP, while a further seven in ten (69%) are either considering the technology, trialling it or planning to implement it. This suggests that the cost and carbon saving benefits associated with the technology are seen as attractive by many organisations. The biggest driver for investing in hydrogen is cost. A third (33%) of firms believe hydrogen will be a more predictable cost for them to factor into their plans than alternative fuels.

Justin Jacober, Director of Centrica Business Solutions UK & Ireland, said: “Organisations

clearly see the potential of hydrogen in creating a net zero future, where energy costs are more predictable than those imported from overseas. A progressive approach to modern energy technologies that incorporates hydrogen will mean firms benefit from reduced carbon emissions and lower energy costs.

“What we need to see next is the UK invest in hydrogen and get ready to deploy technologies more quickly. By investing now, the UK can make sure it is a leading hydrogen economy. A fully realised hydrogen strategy has the potential to improve flexibility within the grid and enable us to better harness the power of renewables, which will be essential if we’re to reduce renewable curtailment and eliminate carbon emissions.”

Download the research report: www.centricabusinesssolutions.com/ finding-cost-effective-path-net-zero

Yau, Product Manager, Ventilation

*Hern

COMPLEX CARBON ACCOUNTING ECOSYSTEM IS HOLDING INDUSTRY BACK COMMENT

The existing carbon accounting ecosystem is complex, limited in coordination, and lacks regulatory oversight to provide consistent emissions disclosures across approaches.

Resolving this challenge is crucial, not only for helping achieve our Net Zero ambitions at the scale and pace required, but to unleash industry’s economic potential.

A COMMON-SENSE APPROACH

At its core, the solution to the challenge facing us is relatively straightforward. We need to adopt a common-sense approach to carbon accounting, with simplified emissions reporting that can adapt to future requirements of emissions data.

There is a balance to be struck between the flexibility required to meet different carbon accounting needs and the standardisation required to mature the existing carbon accounting landscape.

We have explored this balance in our latest report, Carbon accounting and standards in industry: A framework for innovation and growth, produced as part of the Innovate UK-funded, Catapult Network, Carbon Accounting programme. We promote standardisation where it makes sense and flexibility where necessary.

Currently, there are multiple points of emissions disclosures, ways of processing emissions data, and ways of accounting for this data. The methodologies used are often not transparent and not comparable.

Now is the right time to establish an effectively coordinated carbon accounting framework that works for both industry stakeholders and the Government.

FOUR STEPS TO A CARBON ACCOUNTING FRAMEWORK

Introducing a carbon accounting framework that garners national and international support will not be easy, there will undoubtedly be hurdles to overcome and stakeholders to convince. The following four steps aim to aid UK policymakers with the transition to a common-sense approach to carbon accounting:

by Elle Butterworth, Energy Policy Adviser at Energy Systems Catapult

1. We propose the creation of a Carbon Regulator with the authority to mandate emission monitoring, reporting, and verification (MRV) practices and to coordinate the use of carbon accounting standards economy-wide. Such a regulator would need to be independent of industry, and the Government, to ensure that the needs and concerns of different stakeholders are all considered.

2. To enable industry to “disclose once”, a carbon accounting framework must be supported by a coordinated digital systems architecture, with standards applied to facilitate the interoperability of emissions data. For this, we recommend a distributed digital approach, where organisations own the emissions data they are responsible for and enable relevant parties to access that data (or a subset of it).

3. The Government should fund a series of feasibility studies for industry sectors to ensure a carbon accounting framework does not stifle innovation opportunities, such as cross sector partnerships to reuse waste materials and promotes a level playing field for competition between, and within sectors.

4. Our international partners should be brought into the discussion at the earliest opportunity. Decarbonisation means going beyond the shores of the UK to mitigate carbon leakage. Standardising emissions reporting at source can enable carbon accounting frameworks to adapt and align to global standards and practices with international partners as they mature.

UNLEASH INDUSTRY’S ECONOMIC POTENTIAL

A carbon accounting framework should provide a more complete, accurate picture

of emissions to help inform Government policy. Government will need to consider how policies can best enable innovation and ensure a level playing field for competition.

For UK-based small to medium enterprises (SMEs), a level playing field could be a game-changer. Effective standards can protect SMEs from being disproportionately penalised by additional reporting requirements. Clear standards and data exchange formats enable software service providers to build more generalised products that can be marketed to a wider audience. This enables SMEs to use off-the-shelf products or services to meet their carbon accounting obligations, reducing the need for more complex and expensive, bespoke processes.

WHERE DO WE GO FROM HERE?

Net Zero is a long-term goal requiring an economy-wide carbon accounting framework that is accurate enough to give confidence to investors and consumers, but also adaptable enough to respond to future developments and opportunities for collaboration.

Achieving a carbon accounting framework that works for all stakeholders is a marathon, not a sprint. We cannot wait for the perfect system, we should make incremental steps towards this goal, beginning now. The concept of a distributed digital system should help lay the groundwork for this, building on the digital development already being done in this space.

Ultimately, without effective coordination and regulatory oversight the carbon accounting landscape will continue to develop in a disjointed way.

Read the report: https://es.catapult. org.uk/report/carbon-accounting-andstandards-in-industry-a-frameworkfor-innovation-and-growth/

Battery energy storage: powering the future of smart buildings

Connected Energy specialise in battery energy storage systems that give businesses flexibility over their power. Our systems are helping organisations, across the UK and Europe, to deliver smarter energy solutions on their journey to net zero.

Find out how: connected-energy.co.uk

READING THE ROOM

equipment and controlling a building ‘en bloc’, but if saving energy is the primary objective, more precise control will yield much greater savings.

One sector where this can be demonstrated clearly is student accommodation.

There are more than 1.7M rooms in the UK student estate. As occupants are not directly responsible for paying the heating bill, they are not so diligent about consuming energy efficiently. Therefore, automated control inside every one of these rooms will pay dividends.

entire estate via an internet portal. Profiles for all rooms are programmed on the portal as each new cohort of residents move in. Upper limits for temperatures and time periods are set. This means that heaters cannot be left at the maximum setting all term! However, if individual residents request slight variations to the standard profile, these can be accommodated without the manager having to visit the room. At the end of the year the manager simply selects ‘ALL ROOMS’ then ‘STANDARD PROFILE’, and every room is reset.

Maintaining control and monitoring the equipment that keeps large modern buildings functioning can only be administered with technological solutions.

Building Management Systems (BMS) are designed for this very purpose. They will typically handle – lighting control, i.e., switching on and off according to scheduled events; control and monitoring of mechanical and electrical equipment; scheduling a heating system; and the adjustment of ventilation.

Add to this – door/access control; security and observation; fire and smoke detection; water valve control; people movement – lifts, escalators etc. And the building now has a very comprehensive system which, as well as providing control, helps with energy efficiency.

For some situations though, this can be more complex than is necessary. BMS play their part in switching

In these buildings, many hundreds of rooms will be inhabited by people with very different occupancy patterns and, specifically in the case of international students, temperature preferences. While the BMS is doing the heavy lifting it simply cannot attend to the subtleties of individual room requirements.

This is when the Building ENERGY Management System or BeMS steps into the room. Often BeMS work in conjunction with a BMS but can also operate autonomously. Being ‘in each room’, monitoring occupancy, and controlling individual heaters, BeMS can really drive down the unnecessary use of energy.

A heater control is mounted on the wall and is pivotal in maintaining a comfortable, safe environment, while ensuring energy is only used when necessary. The controller is used to adjust the room temperature to the resident’s preference, but it is also collecting and transferring data to the central monitoring system, where Energy Managers can oversee their

By controlling energy input at the point of use, consumption is more predictable. Room providers can be confident that energy isn’t being wasted if rooms are empty or windows are opened.

The control unit is also monitoring humidity, light, CO2 and sound pressure levels in individual rooms and alerts are sent out if unusual conditions occur. Even greater savings can be made if water heating is also controlled by the BeMS. Monitoring individual water heating cylinders provides a clearer picture of the consumption of both water and electricity. If you can measure it, you can manage it!

Using smart devices to make buildings even smarter, a BeMS is an invaluable addition to any building. Technology-based information and communication systems effectively reading the room and the tank, and provide targeted control at point of use, thus optimising performance and energy efficiency. www.Prefectcontrols.com

Adrian Barber from Prefect Controls explains the benefit of Building Energy Management Systems (BeMS), either used autonomously or alongside a BMS.

LOCAL CONTROL

• Room temperature

• Setback, Boost & Frost

• User adjustment

• Open window

• Absense detection

• Tamper-proof

• Programmable

• Electric or wet systems

*

• up to 30% savings

CENTRAL CONTROL

All ecostat2 features

+ Secure portal access

+ Humidity

+ Light

+ Sound pressure

+ CO 2

+ Water heating

+ Leak detection

• up to 40% savings

*

In accommodation where the rent includes the cost of heating, the room occupant has control over how much energy they use. Prefect products enable Energy and Accommodation Managers to take control of energy use, while ensuring rooms remain comfortable. Scan

Local control

Central control

* Savings are dependent on current control methods, infrastructure, location and profiles adopted.

BUSINESS ENERGY: THIRD-PARTY COSTS AT AN ALL-TIME HIGH

Paul Miller, Business Energy expert at renewable energy company Drax

Wholesale energy prices have risen significantly over the past year, but that’s not the only thing pushing up business energy bills. Third-Party Costs (TPCs) - which typically make up 60% of a business’s total energy charges but are currently sitting at around 40% - are at their highest-ever point. Despite the 20% decrease, their impact on a business’s overall energy costs is still substantial, which means the slightest change will have a big impact.

The latest Third Party Costs Guide from Drax shows that high inflation, regulatory changes and a volatile energy market are among the factors contributing to the rise in underlying charges for TPCs.

Below we provide a snapshot the key trends to help businesses better understand these changes.

• Distribution Use of Systems (DUoS) – rising due to lower national demand, higher inflation, and the expected impact of electricity network charging reforms

• Transmission Network Use of Systems (TNUoS) –increases fuelled by inflation, the generation revenue cap, and changes in Transmission Demand Residual (TDR) charges

• Balancing Services Use of Systems (BSUoS) – significant rises due to volatility, cost deferral through CMP395 and the likely impact of CMP361

• Capacity Market (CM) –increasing at T-1 2022/23 and T-4 2025.26 auction prices were their highest ever recorded; parameters for upcoming auctions are now set

• Renewables Obligation (OB) – price is rising, and mutualisation costs will again have an impact in 2024

• Contracts for Difference (CfD) – levy volatility set to continue given current wholesale prices

Paul Miller, Business Energy expert, commented: “Soaring wholesale prices aren’t the only thing pushing energy bills up. Third-Party Costs (TPCs) –which typically make up 60% of a business’s total energy charges but are currently sitting at around 40% – are at their highest-ever point. Despite the 20% decrease, their impact on a business’s overall energy costs is still substantial, which means the slightest change will have a big impact.

Just like wholesale energy prices, TPCs are sensitive to what’s happening in the market and can rise and fall considerably each year. Our Spring 2023 Third Party Cost Guide found that many of the underlying charges, such as Renewables Obligation (RO), Balancing Services Use of Systems (BSUoS) and Distribution Use of Systems (DUoS), are all going to rise this year, largely due to inflation and increased volatility within the market. We’re working closely with our customers to help them understand these changes and minimise their costs going into 2023.”

Read the guide here: https:// energy.drax.com/insights/spring2023-third-party-costs-guide/

POWERING THE ENERGY SYSTEM THROUGH DIGITAL TWINS: IN WALES AND BEYOND

Carolina Tortora, Head of Digital Transformation and Innovation Strategy at ESO

How to best power a future decarbonised energy system in the most effective way possible is one of the major challenges for reaching net-zero. But how can we successfully consider the whole electricity system, coordinate flexibility, and manage connections for a future decarbonised network?

One answer is through digitalisation and creating digital twins of existing energy assets.

The ESO is leading the way in this space through the Virtual Energy System initiative, which aims to create a realtime digital replica of Great Britain’s entire energy landscape. Made up of interoperable digital twins securely sharing information, it will drive energy innovation and advance sustainability progress.

Taking a lead at a national level, the Welsh Government has recently consulted on increasing the bold targets it set in 2017 to meet 70% of its electricity requirements from Welsh renewable energy sources by 2030.

To support this goal, the ESO is partnering with the Welsh Government, global IT and business consulting firm CGI, National Grid Electricity Distribution and National Grid Electricity Transmission to create a digital twin of Wales’ electricity system to drive progress and support citizens and communities with a clean energy transition. CGI will be providing technical expertise and developing the intelligent modelling solutions for the project.

POWERING WALES

Through the Powering Wales

Renewably project, we will work together and identify priorities for progressing Wales’ pioneering decarbonisation plans, increasing renewable electricity hosting capacity, and delivering net benefits to Welsh communities. The project is a fantastic opportunity to accelerate the deployment of renewables and unlock whole system benefits, working with industry partners to further enable Net Zero in Wales.

This initiative will sit as one of the

use case projects of the Virtual Energy System and is funded by the Strategic Innovation Fund, a programme from the UK’s independent energy regulator Ofgem managed in partnership with Innovate UK. The project has been awarded funding for the Discovery phase, which will establish the project’s challenges and aims. So how can digital twin technology help transform Wales’ energy system?

COMPLETE VISIBILITY

Digital twin technology can provide a whole-system view of the country’s electricity transmission and distribution network. This system will help partners identify how networks can enable greater use of renewable energy from a whole electricity system perspective, seeking to accelerate the Welsh Government’s objective of generating enough renewable energy to meet the needs of Wales. Having complete visibility of current network status will also enable coordination across transmission and distribution networks, allowing system operators to manage capacity efficiency in a way they have never been able to before. By delivering a capacity management tool, digital twin technology will enable a better understanding of the bi-directional relationship between various options in the whole system and different types of low-carbon technology solutions.

FLEXIBILITY

Digital twins can also help deliver a coordination interface for flexibility markets, where power is bought and sold to meet demand, which will in turn optimise network operators’ flexibility requirements across multiple trading platforms and response providers. This allows operators to significantly cut consumers’ costs, creating a win-win situation for operators and customers across Wales.

BETTER COORDINATION

By creating one combined national whole electricity system network model, digital twins will deliver the capability to coordinate information

from different energy models being used by various response providers. This will advance the ESO’s existing energy initiatives by considering the benefits that may be available from increased coordination in the definition of dependent constraints, the aggregated response required by the networks, and how such a requirement is secured with access across all available markets.

Moreover, digitalisation facilitates new distributed energy resource site identification and connection, allowing decision-makers to set priorities, support progress, and enable network change through stakeholder collaboration. This will help address local needs by enabling home-produced, low-cost renewable electricity generation.

IMPROVED PERFORMANCE

Digital twin technology has the ability to capture and monitor the real-time state of a physical object’s functions. This allows operators and engineers to predict how changing conditions will impact the object’s production or performance. With this information, system operators can answer questions about specific processes and test which method proves to be the most efficient.

THE FUTURE OF ENERGY

As the energy sector continues to shift to a digital mindset, companies and nations that embrace digital transformation will have a massive advantage. Leveraging digital twins specifically will help add value, resilience, and efficiency to operating and business models.

By digitalising Wales’ energy system, networks will have the capability to identify priorities for progressing the country’s decarbonisation plans, increasing renewable electricity hosting capacity, and delivering net benefits to Welsh citizens and communities.

Visit here for more information about the Powering Wales Renewably project: https://www.ukri.org/news/ funding-announced-for-53-newelectricity-and-gas-network-projects/

Steam – this extraordinary, energy dense, fluid which is irreplaceable in all kinds of industries to heat, power and sterilize – leaving nothing but water behind. And with advancing steam generation solutions, steam is part of our sustainable future. This is Natural Technology.

You see steam. We see...

IMPROVING COUNCIL SWIMMING FACILITIES WITH VOLTAGE OPTIMISATION AND A FUNDING BOOST FROM GOVERNMENT

Over 800 public leisure centres in England have swimming pools, all playing a vital part in improving public health and wellbeing. Pre-Covid, 72% of all school swimming lessons took place in a public leisure facility, including the statutory learn to swim programme and water safety curriculum for primary schools1. 94% of council leisure centres’ income is generated through customer fees and charges, highlighting the severe impact of Covid closures and reduced usage / capacity post-Covid. When coupled with spiralling energy bills over the last year, resources to help close the funding gap – from local authority increased investment, from DCMS and DLUHC, and from leisure operators’ reserves – are almost exhausted. Unsurprising, then, that the energy crisis has had a profound impact on public swimming facilities.

1 https://sportengland-production-files.s3.euwest-2.amazonaws.com/s3fs-public/2023-01/ Future%20of%20public%20sector%20 leisure..pdf?VersionId=zrxRiwa9Fz__ GWWRFyrBTmCmPqpjOFey

85 pools have closed and not been replaced since 2019, and those closing due to financial issues have doubled compared to three years pre-pandemic. Swim England estimate that 350 facilities have faced service reductions, temporary or permanent closure since last October2 UK Active called for the extension of the energy bills discount scheme to include leisure centres as intensive energy users, anticipating that without this extension 31% of council areas in England would risk losing facilities or further reducing services from the beginning of April. New funding support announced in the Spring budget throws a lifeline to these invaluable public resources, with £63 million in a one-year fund to be administered by Sport England. Detailed criteria aren’t available at the time of writing, but there are key points for public leisure facilities looking towards short-term survival and longer-term sustainability: for council-run pools; pools run by private companies for councils, and those run by charities. The fund is to

2 https://www.swimming.org/swimengland/ government-investment-welcomed/

As with retail and leisure, the public sector has been particularly hard-hit by the energy crisis. Where these sectors intersect –public swimming pools – the situation is dire.

Powerstar’s CEO, Solon Mardapittas, looks at new government funding to support swimming facilities, and at technology to improve energy efficiency and facilitate longterm sustainability.

be split into two strands: £23 million in revenue grants to help tackle operational, maintenance, and energy costs, and £40 million for capital investment to improve energy efficiency in the medium- and long-term. Commenting on the new funding, Jane Nickerson, chief executive at Swim England, highlights the twin priorities of immediate support and longer-term strategy,

“The financial support announced will undoubtedly make a difference for a number of vulnerable pools as they battle with increased energy costs.

“We will continue to monitor the situation going forward and seek to work with the Government to put swimming pools on a sustainable long-term footing to support the health and wellbeing of the nation.

“Pool owners and operators are committed to reducing the carbon emissions and there have been many positive examples from across the country.”3

Powerstar work with leisure centres to reduce emissions and cut energy bills, with Voltage Optimisation (VO) as a key solution underpinning some of these positive examples. A transformer-based technology, VO stabilises incoming voltage to a site, and this can lead to valuable cost savings. The National Grid is legally obliged to supply mains voltage at 230V +10% / -6%, which means that while supply is anticipated at 230V, it can actually be anywhere between 216 and 253V. To keep within the allowable range, Grid supply is generally higher than 230V, yet the typical UK equipment rating is 220V. Operating at a higher voltage than the required rating can waste significant electricity, while damaging and reducing equipment’s lifespan. Most organisations can benefit from VO, but the technology is ideally suited to scenarios involving long operating hours and high levels of electricity consumption – such as leisure centres and swimming pools.

One such Powerstar client is Jesmond Pool, a community-managed leisure site operated by Jesmond Community Leisure. The centre includes gyms, massage and therapy facilities, a multipurpose dance and activity room, and a swimming pool with poolside sauna and steam room. Given their extended operating hours and the variety of activities based at the centre, Jesmond Community Leisure was looking to reduce operational costs to free up capital for reinvestment into core business activities, while improving energy efficiency and becoming more sustainable. To 3 https://www.swimming.org/swimengland/ government-investment-welcomed/

achieve these savings, they had already replaced lighting with LEDs, updated the heating system and installed solar PV. Following a full site survey, Powerstar found that incoming voltage was far higher than necessary, with a maximum recorded voltage of 261.8V. Powerstar’s solution has reduced annual energy consumption at Jesmond Pool by over nine percent, equating to a reduction of 27,207kWh annually, and with the associated electricity cost savings.

Stockton Splash is operated by Tees Active Ltd, a charitable trust dedicated to raising the physical and mental wellbeing of communities in Stockton-on-Tees. Since launching their Environmental Plan in 2022, Tees Active have placed a strong emphasis on energy management, including continued investment in more efficient plant and equipment to conserve energy and reduce pollution. Actively looking for ways to reduce energy consumption and costs, they approached Powerstar, who identified Stockton Splash as a potential site where VO would be of benefit based on the centre’s profile: long operating hours; a high volume of visitors, and energy intensive facilities – including a pool, wave machine and two flumes. Site surveys showed that while the incoming voltage was stable, it was higher than necessary and so cost savings and emission reductions would be possible with the appropriate VO solution. Powerstar’s installation of a 250kVA system, with a fixed 20V reduction, has reduced annual electricity consumption by 70,326kWh, which equates to annual savings of more than ten percent. For leisure

centre managers, given the reliance on customer usage for income, minimal disruption to service is critical. Reflecting on this installation, Dennis Smith, project manager for Tees Active, commented, “We found working with Powerstar to be very easy as they did everything they could to accommodate our requirements not only in which unit was best suited to deliver the greatest efficiency, but also in ensuring minimum disruption. Work was carried out overnight which meant that there was no disruption to our operational hours and our customers. This is one of the simplest ways to achieve instant cost-effective energy savings and we would highly recommend Powerstar.”

The new funding to help keep swimming pools open to all is crucial for public health and wellbeing, and for community cohesion. While grant support to meet immediate financial needs is vital, the weighting of the fund towards the medium- and longerterm is very welcome. VO technology has a proven track record in emission reduction and energy efficiency for the leisure sector, making it a valuable asset for councils and their delivery partners seeking to gain the greatest benefits from this funding to support community resources and work towards Net Zero.

Find out how much you could save on energy costs with Powerstar’s Energy Saving Calculator tool: https:// powerstar.com/energy-savingcalculator/ or contact Powerstar: www.powerstar.com Email: info@powerstar.com T: 0333 230 1327

NAVIGATING VOLATILITY THROUGH BEST PRACTICE ENERGY MANAGEMENT

There are thousands of businesses across countless industries where energy plays a significant day-to-day operational role. However, amid soaring inflation, volatile prices and strict environmental legislation, the priorities of cost management and sustainability are quickly rising to the top of the boardroom agenda. While support through the Energy Bill Relief Scheme (EBRS) has helped to abate impact in the short term, it has brought into clear focus the need for change.

As a result, it’s fair to say that the old adage of simply ‘buying better’ is no longer enough. Instead, a proactive approach to energy management is the only sure-fire solution to turn challenges into opportunities. Alongside ensuring tight management of every kWh, this includes decarbonising operations wherever possible and looking to the future when it comes to accelerating net-zero strategies.

MORE THAN JUST A QUICK WIN

There are huge opportunities for businesses to transform their energy use. However, to achieve this, what’s needed is a clear focus on corporate energy efficiency that goes far beyond procurement and instead involves all aspects of operations.

Done well and with tight ongoing management, this can help to mitigate the impact of market volatility and support decarbonisation goals, while subsequently working towards netzero ambitions. After all, while it might seem obvious, the cheapest kWh is always the one you don’t use.

But where should you start? How can you navigate the complexities? What investment is needed and, more importantly, how can you secure c-suite buy-in when planning for the future? Below, we’ve set out five essential steps that every large business should consider.

1. UNDERSTAND YOUR STARTING POINT

The first stage should be to establish exactly where you are today. This will not only make it possible to map out short, medium and long-term goals, but also better understand the steps

you need to take, how to finance them and the benefits they could deliver.

You’ll need accurate and reliable metering, you’ll need to collect data and you’ll need to record your measurements. Having access to realtime insight into energy use across your operations will highlight inefficiencies, flag areas for improvement and reveal opportunities for immediate savings.

2. SWITCH OFF AND STOP

Once you’ve accurately established your exact position, the next step is to stop consuming energy whenever and wherever you can. For example, can you move high energy processes to lower tariff times, such as manufacturing at night or packing during the day? Can you switch equipment off when it’s not being used? Can you move production hours away from peak times to benefit from lower unit rates?

All these operational tactics can dramatically reduce your energy consumption. You’ll be amazed at just how far you can ‘move the dial’ by simply re-evaluating how you work and what steps you can take to improve business efficiencies.

3. IMPROVE EFFICIENCY

When you’ve successfully eliminated unnecessary energy use, the next step

In this article, Jodie Eaton, CEO of Shell Energy UK Ltd, explains why tightly managing consumption and embracing decarbonisation are becoming increasingly business-critical requirements for organisations nationwide.

is to replace inefficient assets. Invest in better plant, change out your lights for LEDs, fit a better boiler, install a control system, change your motors for more efficient models, double glaze your windows or insulate your roof-space.

In short, do everything you can to minimise energy consumption in your day-to-day operations. While it will undoubtedly require up-front investment, payback will start the minute you switch on new equipment.

4. EMBRACE DECARBONISATION

When you’ve eliminated unnecessary consumption and improved efficiencies across the board, your next step is to decarbonise what remains. Measuring your carbon impact and considering each type of emissions scope is the best place to start.

To decarbonise Scope 1, look to replace any hydrocarbon fuels with renewables, electrify your heat wherever possible, install wind turbines and fit solar panels. As for decarbonising Scope 2, work with your electricity supplier to buy carbon free, or low carbon, power. If you can’t, switch supplier!

Scope 3 is the most challenging to tackle, but the answer lies in co-

operation. Ask your suppliers to report on their carbon footprint, ensure they can explain their energy usage and work collaboratively to reduce the carbon generated by doing business together.

5. MEASURE AND MONITOR

By following the guidance points above, you’ll have likely reduced, recycled and replaced everything you can. It’s then a case of measuring and monitoring – an ongoing cycle of incremental developments. Be aware of new technologies, keep abreast of changes to regulations and make sure that you stay in control of managing your organisation’s carbon emissions.

LOOKING TO THE FUTURE

When it comes to accelerating netzero strategies, businesses should think carefully about the long-term benefits of zero-carbon on-site energy generation. Suitable options are dependent on site size, location and corporate energy demand, but wind power and solar PV are probably the most widely utilised.

These technologies can be combined with battery capacity to store electricity generated at times of low demand, as well as replacing gas boilers for heating

with ground or air-source heat pumps and potentially hydrogen for more heat intensive applications. They all require investment and optimisation to deliver maximum benefit, but all align with the business vision of decreasing carbon emissions and increasing resilience against market volatility.

It should be said that there is no silver bullet solution when it comes to optimising energy efficiency, which means that every business will benefit from bringing in external expertise. At Shell Energy, we’re proud to work in partnership with leading businesses nationwide, helping them to develop energy strategies that set a clear path towards achieving wider decarbonisation ambitions.

Failing to plan or relying on a reactive approach will be a gamble that could leave you beholden to statutory levers and market volatility. Energy is no longer simply an overhead, it’s a board-level priority and inextricably linked to commercial success.

To find out about Shell Energy and its integrated energy solutions offering for businesses, visit www.shellenergy.co.uk/business

MAXIMISING RETURNS FROM RENEWABLE GENERATION ASSETS

Philip Dingle, Director of Future Networks, Lucy Electric

The UK energy transition is moving at pace – with exponential growth in renewables investment in the last decade setting ourselves on the path to net zero.1 The government’s recent Powering Up Britain report shows a reduction in carbon emissions by 48% in the last 30 years, putting the country ahead of major global competitors.2 However, the rapid growth of the industry has brought new problems – with generation often exceeding grid capacity, the national grid is often obliged to pay operators a ‘constraint payment’ to reduce output in order balance supply and demand – these payments to wind powered generation alone totalled £144m in 2021/22, the cost of which is ultimately reflected in consumer energy bills.3 We must therefore ask: How do we maximise the efficiency of renewable assets to realise their potential as low-cost sources of clean energy?

GRID CONNECTION DELAYS RISK UNDERMINING PROFITABILITY OF FUTURE PROJECTS

We have entrusted the energy transition to the power of the free markets, anticipating that the end of fossil fuel consumption will be ensured by improved cost-efficiency of renewable alternatives. Renewables generation in the UK was at a record high in 2022, accounting for 41% of total generation and outperforming fossil fuels.4 And yet, the country is in danger of falling well short of its net zero targets. This is due, in part, to the missed opportunity created by the backlogs and bottlenecks in connecting renewable sites to the grid, undermining the profitability of future projects. Nearly 50GW of renewable projects have been connected to the grid since 1992, but there were 164GW worth of new requests last year alone, demonstrating the levels of scaling up required for the grid to be able to accommodate new projects. The size of the queue to connect is growing to a scale where it threatens to disincentivise any new investment in renewables in the UK, with some

1 Powering Up Britain: The Net Zero Growth Plan, UK Government, March 2023, p.9

2 Ibid., p.6

3 Monthly Balancing Services Summary 2022/23, National Grid ESO, October 2022

4 Energy Trends UK, October to December 2022 and 2022, Office of National Statistics, 30 March 2023

developers warning of waits of up to 13 years.5

While there is evidently widespread awareness of the necessity to address this issue through reforming the connection queue and modernising the transmission network,6 the growing queue and scale of adaptation required makes this seem like a Sisyphean task. This is especially evident when you consider electricity demand is forecast to rise 60% by 2035 as the uptake of technologies such as electric vehicles and heat pumps rise.7

Part of the problem is a failure to enact a devolved approach, with an emphasis on scaled-down, localised network management to accommodate the complexities and variations of the UK energy landscape. Factors such as geography, weather, accessibility, and population density greatly affect variation in demand up and down the country. This means a one-size-fits-all approach to connections is not only unsuitable for more flexible grid solutions needed to accommodate variable renewable generation but is actually hindering progress. Nick Winser, in the new role as Electricity Networks Commissioner, is tasked with attempting to reduce these connectivity timelines by three years and to develop recommendations to help halve the end-to-end project process by the mid-2020s. His first report is due to be published in due and is eagerly anticipated.

LOW VOLTAGE MONITORING: A SMARTER ROUTE TO NET ZERO

A key factor that will play an increasingly important role will be low voltage monitoring. A truly smarter grid will gather data on the time, location and scale of demand. This

5 Renewables groups sound alarm over UK grid connection delays, Financial Times, 6 February 2023

6 Improving and Accelerating Customer Connections: Our immediate action plan, Energy Networks Association, 20 April 2023

7 Powering Up Britain: The Net Zero Growth Plan, UK Government, March 2023, p.27

unlocks flexibility that can maximise the use of local renewable generation to meet local demand. For example, EV charging mostly takes place on the LV network, which is currently the least visible part of the grid. With demand rising, real-time monitoring to observe clustering of demand and check power quality will be an essential component of a distributed and renewablesdriven network, where the potential for losses and unmet demand is higher.

Lucy Electric’s Gridkey data provides clear visibility of load and demand fluctuations and can factor in network safety and load constraints. When combined with smart charging technology, this can create a control signal that can alert or even shut off charging to protect infrastructure or supplies.

Furthermore, Lucy Electric has worked with Oxford County Council to install public charging networks, which will increase in demand because many people do not have access to off-street parking. Using data-capture and monitoring technology in these projects helps maximise efficiency, enabling fast-charging infrastructure to operate within the distributed, more localised grid network of the future.

ADDRESSING THE NET ZERO SKILLS GAP

To prevent renewable projects sitting idle, the government must address the skills gap in installing capacity. The surge in connection requests from new renewables projects should not be a surprise, and thus investing in the training and development of workers in this sector should be a priority for the government, especially at a local level in order to install and maintain a more dispersed collection of energy assets. Matching the rise in demand with a boost in skilled labour can help maximise the potential of the UK’s energy network, and there is no time to lose. https://www.lucyelectric.com/

PEL 103 Power & Energy Logger

Bridge the energy gap between today and tomorrow. Increase energy e iciency and reduce your costs.

Measure and monitor power usage. Identify ine iciencies and out of hours use. Discover power factor, phase balance and harmonic issues.

THE BENEFITS OF MAXIMUM DEMAND SURVEYS

There are many benefits to performing a detailed maximum demand survey on a premises, the most obvious of which being the accurate measurement of actual energy use over time rather than using an estimation. But there is also a lot of interesting analytical information that can be obtained which could be useful in identifying energy use, and potential areas for reduction and savings.

The energy balance within modern properties is constantly changing and this has been further accelerated by the current ‘cost of living’ crisis, with the trend towards more home working also having had a notable affect, both on the home and on the now vacated business premises.

Traditionally a ‘normal’ dwelling, for example, would be considered to have two Ring Final Circuits, two Lighting Circuits, one Immersion Heater, one Cooker and one Shower. However, this is not particularly representative of many modern dwellings, and doesn’t consider the benefits of heating appliance efficiency improvements, the availability of low energy electrical equipment, and the effects of PV, EV, heat pumps, etc.

So, how should you go about accurately determining the maximum demand for a property?

The complexity of the diversity calculations required make this a daunting task, further exasperated by the fact that the figures in the IET Onsite guide are way out of date and have large margins for error built into them.

A recent case study performed at a large town house converted into 5 flats in Richmond, London showed exactly how far out calculated maximum demand can be compared to what’s really being consumed in a domestic situation.

Extrapolating this out to larger commercial and industrial installations would give rise to even more opportunity for errors.

The conversion into flats had occurred over 50 years ago, with the existing 100A single-phase service having been split by the DNO into a 6-way singlephase supply. Five for the flats and one landlord’s supply for communal areas.

This installation had worked very well since then with no known overloading issues, however, the old service head and tails were looking their age, and conversations with the DNO were underway about updating the supply. It was at this point that it was suggested the existing supply was potentially inadequate for the premises, and that the property owner would need a new, larger, DNO supply to be connected, at his expense!

Faced with the huge cost implications of having a new supply connected to the property, the owner set about obtaining accurate and reliable maximum demand data.

They reached out to a local electrician who came and fitted a Chauvin Arnoux PEL103, power and energy logger, along with a 1-metre-long flexible current sensor which was capable of looping

Julian Grant, General Manager of Chauvin Arnoux UK discusses a case where measurement of maximum demand made all the difference and reveals some examples of the hidden gems of information that can be gleaned from the data.

around all 6 tails at once, and therefore capturing the total current in them all.

The PEL103 was set to log current for a period of 12 days to capture the full range of loading on the property and locked safely away in the utility cupboard.

By performing this activity in the colder weather, the results would include any heating loads that might not be present in the summer months.

Analysis of the logging data was a simple process using the PEL PC software, which displayed a log of the current sampled every second both as a table of values, and as a current vs. time graph.

The graph of the total log (Figure 1) showed the maximum current drawn from the supply during the logging period was 48.83A which spanned a period of approximately 2 minutes. The average current drawn from the supply during the logging period was 8.85A.

The data showed that the maximum current drawn from the supply, during the 12-day logging period was less than half the 100A main fuse/cut-out rating, and far less than the textbook diversity calculation would suggest.

The electrician created a report for the property owner detailing his findings and confirming that the installation was indeed operating well within its supply capacity, and a larger supply wouldn’t be required.

A significant cost saving for them and victory for maximum demand measurement over diversity calculations!

In certain situations, it may be useful to be able to identify the types of loads that are consuming energy, particularly if the maximum demand of a premises is close to or exceeds the main fuse/cut-out rating, or if clues are needed in identifying items that are using energy out of hours.

Utilising power and energy loggers with fast sampling rates, such as the PEL103 or PEL104, which can store results every second or 200 milli-seconds respectively, it is possible to achieve exactly that by studying the graphical data produced.

In the previous Figure 1, that shows a graph of the total current demand over the entire 12-day log, it is possible to see the peeks which occur at the same time every morning as the occupants first get up, and again in the evening when they return home from work and start to use cooking and heating appliances. This can be seen in more detail in Figure 2 which is zoomed into a 24-hour period.

Starting at midnight on the left and advancing in time one hour per square we can see the life of the tenants laid out for us. The kettles and toasters of

the early risers appear as peaks of roughly 10A lasting from a few minutes. We can also see a block of current between 6am and 7am, probably a heater pretimed to give morning warmth or hot water. Further peaks are seen around lunchtime and again in the evening when the property reaches its Maximum Demand of around 48A, although only for a few minutes.

The points of maximum demand were when the various cooking activities in the five flats overlapped with each other in the evening, and where the base loads were naturally higher due to increased activity within the flats from TVs, PC’s, lighting etc.

We can deduce this by comparing the current log with a log of 3rd harmonics over the same time. (Figure 3). The high percentage of harmonics prior to the red cursor line being due to non-linear loads such as audio/video/IT equipment being the dominant consumers of energy,

but as soon as the much bigger, linear loads (kettles and cookers) are switched on, which produce no harmonics, the percentages drop, only returning to their higher levels once dinner was cooked! The benefits of using maximum demand measurement over diversity calculations are clear and many. In this example it saved an enormous amount of unnecessary work and expense by proving the suitability of the supply to the actual load(s), and while the nature of the loads was somewhat irrelevant as the maximum demand was so low compared to the 100A main fuse/cut-out rating, such information can be extremely useful in different circumstances.

www.chauvin-arnoux.co.uk

PRIME CONTROLS ARE NOW A VALUE-ADDED PARTNER FOR HUBSENSE®: THE MOST EFFICIENT AND FLEXIBLE WIRELESS INFRASTRUCTURE

WHAT IS HUBSENSE®?

HubSense® is an advanced, automated, wireless lighting infrastructure that uses software deployed on the latest hardware. This provides a flexible, economical, and highly secure solution that is compatible with DALI-2 and D4i devices.

Designed for simplicity in installation and configuration, HubSense® wireless technology is based on the global standard Bluetooth® SIG mesh backbone to ensure future-proofing and compatibility with a wide array of system hardware.

Today’s lighting must react quickly to changes, maximise savings, and be easily expandable - and it must deliver these benefits without further wiring or structural changes. HubSense® is all of this and more, making it the go-to solution for any commercial environment where automated control of single or multiple luminaires is required.

HubSense® technology by Inventronics, streamlines emergency lighting solutions with straightforward, costeffective options to keep your workplace safe and secure.

EXPERT COMMENT:

HUBSENSE® KEY FEATURES AT A GLANCE:

Expedited commissioning up to five times faster than other systems

Utilises the global standard Bluetooth SIG mesh for seamless communication

• Compatible with DALI-2 and D4i devices for enhanced functionality

• Efficient communication that uses less network bandwidth compared to other systems

• Streamlined configuration process for ease of use

• Scalable design for maximum flexibility

Single system integration with emergency luminaires for enhanced safety Built-in mesh check for efficient troubleshooting

• Full compatibility with QBM components for added versatility

• Applicable in various commercial environments, such as schools, offices, shops, hospitals, and car parks

• Suitable for use in all industrial environments, including warehouses, factories, and logistics units

• Highest level of security to ensure data protection

More cost-effective than other systems, resulting in a short investment payback period.

HUBSENSE® FOR EMERGENCY LIGHTING

HubSense® makes emergency self-testing simple and affordable. Unlike other solutions, HubSense® allows localised automatic emergency light testing without the requirement of gateways or ongoing charges.

HubSense® can be configured with web app commissioning via pc/tablet and mobile app for simple operation. HubSense® commissioning is up to five times faster than competitor alternatives and is far superior to traditional hard-wired systems with less time to install, less up-front cost for a head end, fewer wires to pull, and no ongoing costs. You can also

commission room by room, whilst still working on the project and have parallel engineers managing the commissioning to make the process faster.

HubSense® uses a standardised Bluetooth® SIG mesh backbone that makes it suitable for every commercial environment. Compatibility and integration are further improved by the wide array of available hardware, and the universal platform. You can use HubSense® controls for new construction or retrofitting in individual offices, corridors, conference rooms, open-plan offices, retail outlets, hotels and showrooms, warehouses, manufacturing locations and more. For more information about HubSense® and how it can support your project, please get in touch with the team at 0208 968 2000, or email bb@primecontrols.co.uk

“Working with HubSense® takes us into a whole new realm of quality products for our customers, we’re confident in this product, its technology, and the range of applications it supports.” Ben Brunton, Director of Controls.

ENERGY EFFICIENT HIGH MAST LIGHTING FOR UK CITY OF CULTURE

CU Phosco work with Balfour Beatty to replace Coventry’s high mast lighting throughout the cities inner and outer ring roads, saving 30% energy with a payback period of less than four years.

In 2017, Coventry was named the UK City of Culture 2021 by the Department for Digital, Culture, Media and Sport (DCMS), which provided access to funding to improve its infrastructure and arts facilities. The city will host a series of events celebrating local culture until 2025.

Since then, Coventry City Council has been working to regenerate the city’s public realm, with lighting playing a crucial role in the transformation. In 2010, Balfour Beatty Living Places was awarded a 25-year street lighting PFI partnership by Coventry City Council to manage and maintain the city’s street lighting assets, ensuring they are efficient, reliable, and safe.

In the first five years of the partnership, Balfour Beatty replaced and upgraded all of the streetlights across the city, reducing energy usage by 50%, minimising light pollution, improving response times, and reducing the overall number of streetlights by 10%. This has helped to save 3,000 tonnes of carbon emissions each year.

One of the partnerships workstreams was the replacement of high-mast lighting, for which they turned to CU Phosco. They replaced the 400W high energy lanterns on high masts throughout the city’s inner and outer ring roads with new energy-efficient LED luminaires.

CU Phosco installed a total of 443 P855 luminaires on 78 high masts across a variety of roads in the city.

The high mast LED luminaire features a 360° rotating STARoptic®, providing the team with unlimited lighting design and orientation freedom while allowing them to optimise energy efficiency (160 lm/W) for even the most challenging schemes. This was ideal for Coventry’s busiest locations.

Due to the location of the sites, the project required meticulous planning to minimise public and emergency service disruption.

The CU Phosco team completed the lighting design. Once approved, the installation and mast maintenance took place during the night over a fourweek period, keeping road closures to a minimum and outside peak hours.

Even after installation, the luminaires continue to offer minimal disruption to residents. P855’s G6 glare rating ensures it is dark sky friendly with no upward light, reducing light pollution in the local area.

The new installation and maintenance works restored the integrity of Coventry’s high mast lighting infrastructure, delivering improved lighting quality

and road safety for the residents of the UK’s City of Culture 2021.

Additionally, the scheme has delivered 30% energy savings for the council with a payback period of less than four years.

Steve Hall, Midlands Contract Manager, Balfour Beatty Living Places, comments: “CU Phosco carried out the works exceedingly well and worked well with our team at Balfour Beatty Living Places. I found working with them a pleasure. The benefits of this scheme are now being truly realised, with the new improved and more reliable lighting also minimising recent increases in energy costs for the council.”

For further information on CU Phosco, please visit www.cuphosco.com

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POWERING THE FUTURE OF SMART BUILDINGS: BATTERY ENERGY STORAGE

The sustainability of buildings is a high priority for organisations and will remain so as we move towards Net Zero. Smart buildings can play a key role in reducing an organisation’s carbon emissions however three of the most popular next steps: installing solar panels, heat pumps, and electric vehicle (EV) charging points all come with their own challenges. Most commonplace is the issue of the grid capacity that is needed for implementation and the power requirements they additionally add to a site.

GRID LIMITATIONS

All buildings have a limit on their electricity usage – this capacity is set by your distribution network operator (DNO) to ensure that other buildings on the same grid connection all get a

Batteries repurposed from yesterday’s electric vehicles could hold the key to sustainability for tomorrow’s smart buildings. Matthew Lumsden, CEO of Connected Energy, explains why.

fair share of the available energy. This means that, if you want to add energy intensive equipment like heat pumps or EV charging, you could need a connection upgrade. This can often run into the hundreds of thousands of pounds and can take months to implement. Similarly, most sites experience peak demand spikes, meaning that you might only be exceeding your grid connection capacity for short periods each day. In this instance, paying for a grid upgrade could be counterintuitive.

SMARTER SOLAR

Solar power offers a cost-effective way to reduce energy bills and cut carbon emissions, a win-win for many organisations. But the real key to delivering a return on investment is optimising its use, which means making sure every kilowatt-hour (kWh) of solar you generate is used by your business. The best way to monetise a rooftop PV array is to offset the site load while exporting as little energy as possible back

to the grid. This means identifying the best fit between the site load and the generation profile of the PV. Battery energy storage systems (BESS) enable solar arrays to operate in that sweet spot by storing some of that energy generated for use at a later time.

Through data analysis, experts can model the energy generated by solar panels to demonstrate how a BESS could maximise savings and further reduce carbon. This can be modelling the benefits of storing surplus energy generated from solar, but it can also include how a BESS can help manage load profiles and reduce peak loads on site.

EV CHARGING DEMAND

A great example is EV charging. As buildings move from installing one or two chargers to entire charging hubs, the energy load significantly grows. This can take a building over its agreed grid capacity, leading to surcharges. If those EVs are also charging during peak tariff periods they are also increasing your overheads. A BESS enables you to store energy from solar arrays and use it during peak periods to reduce electricity bills – you can also charge the BESS at night direct from the grid when tariffs are lower and use that cheap energy the next day, offsetting those higher costs. One recent example of this is our work with Nottingham City Council’s innovative new fleet depot where two battery energy storage systems will work together with 40 V2G charge points, solar arrays and a new software system to create a full building energy ecosystem.

POWERING HEAT PUMPS

In the same way, heat pumps increase the energy load of buildings. They have much lower carbon footprints than gas boilers but require a substantial amount of electricity to power them. If you are already at or close to capacity with your DNO, you can’t add heat pumps without incurring surcharges on your energy bills. A BESS can solve this problem in a much more cost-effective and timely way than paying for a DNO upgrade.

SUSTAINABLE SECOND LIFE

BESS can build the business case for solar PV, heat pump installation, and EV adoption. But if they are comprised of new, large-scale lithium batteries then there is still an environmental impact. However, what if we could create BESS out of existing batteries? This is exactly what Connected Energy has achieved. When an EV reaches the end of its useful life, the batteries still have up to 80 per cent of their energy storage capabilities. Connected Energy takes those batteries to create E-STOR, its 360kWh energy storage systems.

At Connected Energy, we work with organisations to help model whether a BESS could work on a specific site. We model current and future energy data combined with information on a site’s requirements and then use this data to project the costs of various scenarios, with or without energy storage.

Our feasibility studies set out our calculations showing both the financial and carbon benefits of a battery energy storage system. We can even show what would happen if you were to increase renewable energy on site or how it could work with different mixes of EV chargers and heat pumps.

The UK Government estimates that buildings are responsible for 30% of our greenhouse gas emissions. At the same time, UK energy usage is forecast to double by 2050 from a 2018 baseline. This represents a dual challenge for building managers as they look to implement energy efficiency against a backdrop of increasing energy use. Smart buildings can help on the road to Net Zero. Combining a range of decarbonisation measures with battery energy storage can however lead the way to a more reliable, resilient and sustainable energy future. www.connected-energy.co.uk

Connected Energy at University of Sheffield’s AMRC

GRID CONSTRAINTS THREATEN RENEWABLE UPTAKE

Akey plank of the UK’s decarbonisation strategy is transitioning to an electricity network powered solely by zero carbon, renewable energy. Progress is being made: The National Grid’s electricity system operator (ESO) reported that in 2022 the UK hit a record high of wind and solar generation1. But there is one major roadblock that stands in the way of the electric revolution – the limited (and rapidly diminishing) capacity available via the UK power grid.

The non-profit Energy and Climate Intelligence Unit (ECIU) noted that Britishbased renewables have already overtaken gas as the UK’s primary source of electricity, based on data taken between October 2022 and January 20232. However, following the unprecedented soar in demand for wind and solar farm grid connections, many projects are now being placed on hold. At times when network capacity for renewables was restricted in the financial year of 2022/23, ECIU explains, payments to gas generators reached £485 million – the highest payment to any type of power generator.

BEWARE OF BACKLOGS

The National Grid is warning those looking to secure new connections in England and Wales that they will have to wait in line behind some 600 other projects – collectively compromising of 176GW of energy. This backlog extends more than a decade, with only 64GW of connected capacity available.3 These limitations are delaying billions of pounds

1 https://www.nationalgrideso.com/news/britainselectricity-explained-2022-review

2 https://eciu.net/media/press-releases/2023/ uk-renewables-overtake-gas-as-top-electricitygenerator-this-winter

3 https://www.nationalgrid.com/electricitytransmission/queue-management-next-stepaccelerating-grid-connections

of private investment and at the same time putting the brakes on the UK energy sector, which is not compatible with the UK government’s targets for renewable energy generation. The issue will likely spiral over the next few decades, with the UK’s electricity demand expected to double or even triple by 2050.

Suzanna Lashford, Manager, Business Deveopment at infrastructure and renewable energy specialist company Vattenfall Networks, comments: “As it stands, grid-blocking is restricting hundreds of credible projects from achieving their renewable energy potential, thwarting the efforts of those who are ready to fully commit to the net zero transition. If the UK wants to meet its targets, wider plans must be initiated to improve capacity and lessen delays. Connections would need to be looked at on a regional basis to enable the UK to analyse where demand is, and place generation close to demand to help stabilise those local areas.”

The National Grid ESO has publicly acknowledged that the current connection process has ‘not kept pace with the rapid changes occurring in the energy sector’4, and recognised that the common consensus across the country is that the process is no longer fit for purpose. Distribution Network Operators (DNOs) are currently drawing on new, more flexible approaches to managing their network and enabling connections via curtailment offers, which offer users the opportunity to gain some of their required capacity now and some later, in

4 https://www.nationalgrideso.com/electricitytransmission/document/273021/download

a bid to release capacity in constrained areas and free up space on the grid. But such changes are not yet guaranteed, and may take years to put in motion.

BREAKING THE BOTTLENECK

Some developers are in the position where they can afford longer time scales for a grid connection. They may also be offered a connection much further from their facilities, thus increasing the overall cost to the developer. But smaller organisations with less funds at their disposal and those trying to benefit on a local level will struggle with the current procedures available to them. By partnering with an Independent Network Operator (IDNO), or a ‘power partner’, as Lashford describes it, any sized developer can receive support in value engineering their connections and therefore reducing costs, while avoiding bottlenecks.

“IDNOs are a direct, client-facing ‘power partner’, meaning customers do not have to wait in line behind other developers to get our support. They reserve capacity on their partner’s behalf and contribute to the cost of the network by investing in new cables, substations, and upgrades. Vattenfall’s IDNO uses a holistic, collaborative approach to plan the most effective power upgrade strategy for developers, which is tailored to their specific requirements and decarbonisation goals; and we even go one step further to ensure all on-site power is being used as efficiently as possible so that our partners never overpay for what they need.” https://group.vattenfall.com/

Demand for renewable energy is soaring, but limited grid capacity is slowing the widespread green electricity adoption, says Vattenfall Network Solution’s Suzanna Lashford.

SPACE-BASED ENERGY: POWER STATIONS OF THE FUTURE

WHAT EXACTLY IS SPACE-BASED ENERGY?

Space-based energy is a way of sustainably sourcing energy thanks to technological advancements such as ultra-light solar cells.

Using solar panels, solar energy can be collected with reflectors and mirrors being installed in space. This then allows solar radiation to be directed onto panels, causing it to transmit onto Earth, resulting in space-based energy that is then converted into electricity. Thus, energy can be generated in a clean, renewable way, regardless of the time of year or the weather for a more sustainable future. With the ability of this process to source a huge amount of energy, it could potentially trump other energy sources in tackling the climate crisis.

WHAT ARE THE BENEFITS OF SPACEBASED ENERGY?

There are many advantages to space-based energy, but one of the major benefits is that it involves electricity constantly being generated. A spacebased power station can be powered by the sun throughout the day, thus being a much more effective way of converting energy to electricity than existing terrestrial solar power systems based, which are time and weather dependent.

The global demand for energy is expected to grow by 47% before 2050, making sustainable sources absolutely crucial. The need for electric connection is here to stay, so it’s a major advantage that space-based energy can provide a cleaner solution to electricity. In fact, this way of sourcing electricity would generate 0% greenhouse emissions, so this can meet the demands of energy while simultaneously preventing damage to the planet.

Yet another benefit we could reap with space-based energy is lower land usage. With solar energy, while this is another sustainable way to provide electricity, there are some impacts on the environment. Altered sun exposure is just one of the effects of solar installations, as they cause some areas to be blocked from rainfall, which, in turn, affects the growth of plants. However, this is not an impact

of space-based energy, thus making it a more reliable source of electricity.

WHAT DOES THE FUTURE LOOK LIKE FOR SPACEBASED ENERGY?

There is still much more progress to be made across the globe, with the high cost of implementing sustainable solutions being one of the challenges. However, the future is hopeful for space-based energy, with several countries being in talks of investments.

In the UK, the government is in talks to build a space-based solar power station to achieve the goal of net zero by 2050. Net zero refers to the aim to balance out greenhouse gas emissions with those that are removed from the atmosphere, and this £16 billion project has the potential to reach this.

On the other side of the world, China has already tested technology to align with its target of having a solar power plant in space by 2028. The technology would allow for a space-based solar power plant that could beam energy to the earth, with outside energy experts and academics verifying the tests in June this year.

Over in the U.S, there are plans in place reflecting progress. In order to produce advanced technology for space-based solar power, Northrop Grumman has partnered with the U.S Air Force Research Laboratory, costing $100 million. As well as this, Northrop Grumman has partnered with Caltech to develop ‘The Space Solar Power Initiative’, another project to contribute to the progress of spacebased energy through innovations.

Japan is yet another country making progress with space-based energy. By 2025, Japan Space Systems, based in Tokyo, aims to have developed a space solar power system that will collect energy from the sun and transmit it to earth using a satellite. Therefore, it could be just a matter of time until we reach a cleaner future.

While there are many countries yet to contribute towards space-based energy solutions, plenty of progress and investments are already in place; and it may not be too long until this helps us reduce greenhouse gas emissions globally. www.northernpowergrid.com

Energy production is one of the many contributors to climate change, but given the necessity for energy, there are more advancements required to make the process more sustainable – enter space-based energy. This isn’t a new concept, but recent developments are making it much more accessible as an option – and it could be the answer to cleaning up the planet. But what is spacebased energy, and what does it mean for the future? Here, with the help of Northern Powergrid, we tell you everything you need to know.

THE ROLE OF ADAPTABLE SOFTWARE IN ENERGY GRIDS: FLEXIGRIDS OF THE FUTURE

Energy infrastructure has never been so diverse. With renewable energy, microgeneration and battery storage redefining the grid, new technology is essential to bind this infrastructure together.

Flexigrids – grids that incorporate this range of energy assets – could be the future of energy distribution. Here, Garry Forfar, sales director for energy at grid software developer, COPA-DATA UK, explains the challenges of these networks and the technology investment required to ensure resilience.

Energy demand is expected to grow by 50 per cent by 2027, according to data from Sustainable Biofuels. Looking to the future, traditional energy infrastructure will not be able to cope with this surge in energy supply – not to mention energy assets that are required to provide this power in a sustainable manner. This is where flexible energy grids come in.

A flexible energy grid – or a flexigrid – is an electricity grid that is designed to handle the increasing volume of renewable energy sources by integrating these seamlessly. Unlike traditional grids, a flexigrid is able to balance the intermittent nature of renewable energy, like wind and solar, by incorporating management assets onto the grid, like battery energy storage systems (BESS) and control technology, to ensure this energy can be distributed effectively.

A flexigrid has multiple generation points into which distributed energy resources (DERs), small-scale electricity supply or demand resources, can be connected. DERs include the aforementioned solar, wind and stored energy, but there is also potential for electric-vehicle-to-grid (V2G) connectivity.

Among many reasons, one contributor to growing electricity demand is the increasing number of electric vehicles (EVs) on the roads. Sales of EVs in Europe increased by 65 per cent in 2021 and this trend is expected to continue. Industry is currently discussing how adaptable charging could be possible for a V2G set up. In practice, this could see power taken from charging stations, and put back to use elsewhere when large charging sessions are not necessary.

The ability of flexigrids to support a greater variety of energy sources,

including potential V2G set ups, is what makes them stand out as an essential energy technology. But, what else is required to make them function?

SOFTWARE FOR MANAGING FLEXIGRIDS

Control and monitoring software is crucial for flexigrids to be feasible. By their very nature, flexigrids connect a number of different assets – be that renewables, BESS or charging stations. Therefore, enabling their communication is crucial.

Let’s say a manufacturer has a small microgeneration set-up on their industrial facility. The site uses solar panels on the roof to generate power and stores the energy from these assets in a small BESS. If the facility were to have a temporary shutdown, say, over the festive or summer period, there is an inevitability that excess energy will be available.

Flexigrids allow the manufacturer to sell this excess energy back to the grid. What’s more, agile communication between the BESS and the wider grid mean this can be done automatically, allowing the grid itself to flex and redistribute energy depending on what is needed and when. Not only can this help microgenerators to gain capital from their renewable sources, but it can also improve the resilience of the grid as it relies more heavily on renewable power.

A crucial part of this set up is software that can communicate across this range of assets. COPA-DATA’s zenon is an energy grid software that can integrate seamlessly across a range of communication protocol,

regardless of the asset’s age, original equipment manufacturer (OEM) or location.

This mass integration allows for complete visualisation of the flexigrid, allowing operators to visualise all the kinds of energy generation processes that are involved. This way, it is possible for operators to spot possibilities – and problems – early. For instance, if our aforementioned manufacturer was generating more solar power than it is possible to store at their facility, the grid operator can take action to ensure power surges do not occur. Likewise, this visualisation can identify when energy stores are low and dip into stored excess energy when supply and demand is unbalanced.

With the demand of energy set to increase by almost 50 per cent over the next 20 years, our current grid needs significant investment and change.

Flexigrids provide an idyllic vision of how our energy infrastructure can integrate new assets, include microgenerators and encourage the pace of EV deployment – but they simply aren’t feasible without technology for monitoring and control. www.copadata.com

HOW TO ACHIEVE MAXIMUM ENERGY EFFICIENCY FROM A HEAT PUMP

The energy efficiency of heat pumps is not in doubt; they are up to three times as efficient as a gas boiler. But to maximise the energy efficiency of a heat pump, there are four key aspects that need careful consideration: building fabric, building services, heat pump system design, and usage.

BUILDING FABRIC

The design of your building and the material it is made from will impact the energy efficiency of your heat pump. The more thermally efficient the building, the more energy efficient it will be. Consideration therefore needs to be given to all aspects of building fabric, including insulation, glazing, etc. Undertaking a building survey will enable you to identify heat loss within your building and remedial work that needs to be done to reduce this.

BUILDING SERVICES

A building survey should also address the services within that building, including the existing heating system to see if it is fit for purpose when it comes to running efficiently with a heat pump. Key to the success of a heat pump based heating system is the ability for the building’s heating system to be able to operate on lower temperatures. That means correctly sized radiators.

HEAT PUMP SYSTEM DESIGN

It might seem like stating the obvious, but heat pumps are not gas boilers; the specification and system design is different. If you treat them as the same thing, you are not going to reap the true energy efficiency benefits of a heat pump, your electricity costs are going to rise and you may well end up with some unhappy, chilly occupants.

To correctly specify a heat pump, the thermal efficiency of all the areas to be heated – including aspects such as window sizes and the building’s materials – needs to be measured and calculated. It needs a skilled person to conduct a survey of this nature.

In the world of gas boilers, it’s standard practice to oversize them, which doesn’t really matter as the boilers just work less hard. Oversizing a heat pump however doesn’t mean you’ll benefit from more heat, but it does make it less efficient, so correct sizing matters.

Kevin Potter, National Sales Manager at Hamworthy Heating

The location of a heat pump is also completely different to that of a gas boiler, as a heat pump requires external air flow to function so must be installed externally. Units are commonly installed at ground level or on the roof depending on the building type, but the key requirement is adequate clearances to ensure good air flow.

Another aspect that differs from gas boiler installations is the use of a buffer tank, but this has an important role to play when it comes to heat pump energy efficiency. A buffer tank keeps a minimum volume of water ‘in circuit’ at times when the heating load is very low. It prevents the heat pump from short cycling and provides a bypass route to maintain the minimum flow rate through the heat pump if most of the heating zones have shut down. Short cycling not only impacts energy efficiency and comfort levels but can also reduce compressor life.

HEAT PUMP USAGE

As with all heating systems, understanding the building and its usage is important to identifying what you want to achieve from your heating system. This then needs to be translated into a good control strategy for maximum energy efficiency. Heat pumps are capable of everything that boilers

are capable of when it comes to control, and can readily be integrated into a BMS.

Educating the building occupants as to the new heating system is an important consideration. With a gas boiler, if the temperature drops you can turn it up. With a heat pump, you need to maintain a base heating temperature over a long period of time. Opening windows or messing around with thermostats will cause an imbalance in the system that will take time to rectify.

VIVRE LE DIFFERENCE!

Heat pump installations will continue to increase across the UK’s non-domestic buildings as an energy efficient source of heating. But a heat pump is not a boiler and a like for like replacement is not possible. To make the most of a heat pump, addressing the factors outlined above is essential if you are to maintain both a comfortable temperature and energy efficiency.

Hamworthy Heating is a trusted British commercial heating manufacturer which has recently launched the Tyneham Heat Pump range.

Tel: 01202 662 552

Email: sales@hamworthy-heating.com

www.hamworthy-heating.com

MODELLING WEATHER IMPACTS FOR THE RENEWABLE ENERGY TRANSITION

The ultimate goal of the energy transition is the complete decarbonisation of energy systems. Integrating plants that capture solar, wind and tidal energy into the energy infrastructure involves complex data-driven decisionmaking. As it is neither viable nor realistic to effect an immediate switchover, large-scale adoption of renewables into an established grid has to be a phased process to be sustainable.

A fundamental principle for electricity systems is that generation must balance with demand across all time periods, from micro-seconds to hours and throughout seasons. This doesn’t change when renewable energy sources are integrated, but increasing the proportion of variable renewable energy (VRE) in the mix does introduce some major new challenges.

The intermittent nature of renewables increases the need for flexibility in the power system to avoid blackouts, brownouts and other power quality issues. Understanding how the weather might behave, and how this impacts generation potential, is thus relevant for almost every decision about increasing the penetration of renewable energy. Modelling these impacts becomes even more significant when

you factor in climate change. The need to de-risk energy supply and climate investments, and incentivise funding calls for informed, persuasive, scenario-based and data-driven modelling and insights.

ASSESS POTENTIAL RENEWABLES RESOURCES

The availability and characteristics of VRE resources vary widely from location to location. The need to properly account for weather variability and seasonality is crucial for planning, whether that’s for an individual site, a portfolio of installations or a complete system. This calls for suitable datasets, models and tools.

The Institute for Environmental Analytics (IEA) has developed customised methods to merge numerical weather models with satellite observations that make it possible to downscale wind, temperature and irradiance estimates to a 1km spatial resolution and 10-minute timestep.

Once the expected resource has been quantified, it’s possible to estimate likely power yields and levelised costs. As a renewable energy project progresses, the level of detail required to reduce uncertainties, prove viability and make the financial case increases. Again, this necessitates appropriate data, modelling techniques and technology.

FORECAST RENEWABLE PRODUCTION

Increasing the proportion of VRE in the energy mix also increases the

importance of accurate forecasts of expected production. Current best practice involves running a combination of forecasting techniques up to the event. For example, if you are forecasting power production at 10:00 am on a given day, numerical weather prediction models provide sufficient forecasting skill up to 24 hours ahead.

From 24 hours up to 1 hour before the event, the best forecasting skill for solar comes from using satellite observations to predict the movement of clouds using a technique known as Cloud Motion Vectors.

From 1 hour before and up to the event, the best forecasting skill comes from statistical models combining forecasting methods with on-site observations from sky cameras, anemometers, and on-site power production.

Combining these prediction methods can give the system operator valuable data and help the site owner to schedule planned maintenance at times of low- or no-generation, to minimise costs, optimise revenues and maximise CO2 emission reduction.

As with all VRE estimates, the accuracy of the forecast is likely to be localised, dependent on weather regimes and potentially variable. In stable conditions forecasting accuracy could be very close to 100%, but in intermittent conditions forecasting accuracy can drop significantly.

Decisions about the viability of renewable energy developments must be data-driven and based on robust, reliable modelling.

Alan Yates, Head of Energy Applications at the Institute for Environmental Analytics explores how effective strategies for renewable power production benefit from advanced energy modelling

WEATHER VARIABILITY ACROSS TIMESCALES

It is possible to produce effective production profiles by modelling future mixes of energy generation across a range of timescales. This involves navigating through large, high-resolution time-series data to find typical and extreme conditions and requires significant modelling power.

Understanding variability across multiple timescales provides the key to understanding likely weather behaviour and the potential for, and impact on, renewable energy generation. Variability between years and months is important for feasibility analysis, planning and design activities. Understanding variation on a daily, hourly, minute or even secondby-second basis is crucial for making operational decisions to manage the grid.

For a solar plant, overcast conditions will maximise the need for dispatchable generation to compensate for the lack of VRE. Highly intermittent generation must be balanced either by storage or flexible dispatchable generation. Clear sky conditions will minimise the need for dispatchable generation.

At times of excess generation from wind or solar, the system operator may need to curtail energy production, store energy in batteries, increase demand – for example, encourage EV charging

or industrial consumption – or convert it into a fuel such as hydrogen.

A tool that enables generation profiles to be visualised with increasing granularity shows how significant short-term variability

can be on any given day. At an individual site, up to 80% of solar generation can be lost in as little as 30 seconds as clouds obscure the sun.

Robust weather behaviour modelling shows the impact on power generation of both typical and extreme weather conditions. This modelling informs the strategies that governments, operators, generators and investors will need to adopt to ensure a stable, efficient and economically sound renewable energy system.

Of course, every case is different. From scenario analysis to project design through to operational energy generation, models must be customised to the relevant specifics to highlight and

quantify the uncertainty and limitations. Effective decision-making around renewable energy production calls for a tool that enables quick evaluation of multiple different generation scenarios to plan effectively for a successful energy transition.

The Institute for Environmental Analytics has developed EnergyMetric, a web-based application to enable efficient development of modelled scenarios to inform decision-making for prospecting, pre-feasibility and feasibility analyses. The application is designed to help planners and investors create and explore potential future VRE generation scenarios as power systems evolve through transition phases. https://www.the-iea.org/

UK DISTRICT HEATING: WILL WARMING ATTITUDES TO HEAT NETWORKS FUEL NEW REGULATION?

Ryan AyrtonPartner Watson Farley & Williams

District heating is not new in the UK, in fact the basic idea behind heat networks goes back over 200 years. Since then, district heating technology has made great strides forward and is now recognised across Europe as a key part of the net-zero transition. With the introduction of the Energy Bill to Parliament in July last year, is it now time for UK regulation to catch up with the technology?

Unlike some of our European counterparts, the UK has been comparatively slow in its development of district heating opportunities. In 2014, approximately 2% of UK homes were connected to a heat network, compared to 60% in Denmark.1

This relatively low uptake meant that, until recently, regulation in the sector was driven by independent stakeholder groups and other interested parties – most notably the Heat Trust, which launched in 2015 with the aim of improving access to heat networks, implementing strict standards to an unregulated market and promoting innovation in the industry.

In recent years, in line with the government’s Net-Zero Strategy2 and a recent report by the Climate Change Committee which estimated that around 18% of UK heat could come from district heating networks by 2050,3 there has been increased momentum toward formal regulation of heat networks.

In 2016, the Department for Business, Energy & Industrial Strategy (as it then was) introduced the Heat Networks Investment Project (“HNIP”) pilot scheme which awarded over

1 https://northsearegion.eu/media/1531/ the-danish-energy-system-case-dh.pdf

2 https://www.gov.uk/government/ publications/net-zero-strategy

3 https://www.theccc.org.uk/publication/ the-fifth-carbon-budget-the-next-steptowards-a-low-carbon-economy/

£24m in funding to nine district heating projects across the UK.4 The lessons learnt from the pilot scheme saw the eventual £320m HNIP capital investment programme being rolled out in 2018,5 which sought to leverage around £1bn of private sector and other investment to support the commercialisation and construction of district heat networks.6 This was significant and, whilst it certainly demonstrated a commitment to growth in the sector, the UK regulatory

4 https://www.gov.uk/government/ publications/heat-networks-investmentproject-hnip

5 https://www.gov.uk/government/ collections/heat-networks-investmentproject-hnip-overview-and-how-to-apply

6 https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/ attachment_data/file/748477/hniplaunch.pdf

regime remained informal and uncertain.

In late 2021, Ofgem was appointed as the district heating regulator in the UK.7 Until then, the Heat Trust had been the UK’s unofficial body responsible for protecting district heating customers and championing district heat suppliers. This move should provide more certainty in the district heating sector and ensure that the UK’s commitment to increasing district heating capacity is coupled with ‘fair prices’ for district heating customers.

LOOKING FORWARD – WILL WE SEE NEW REGULATION IN 2024?

The Energy Bill (the “Bill”), introduced

7 https://www.gov.uk/government/news/ uk-government-announces-majorexpansion-of-heat-networks-in-lateststep-to-power-homes-with-greenenergy

It is recognised that district heating will play a crucial role in the UK’s energy transition. With that in mind, the UK Government is committed to ensuring district heating users receive a fair price and a reliable supply of heat.

in the House of Lords (“HoL”) in July 2022, has been making its way through the Parliamentary process, having just reached the report stage in the HoL on 28 March 2023. Given the slow progress to date, it is thought that the earliest date that any new regulations will come into force is early 2024.

The Bill seeks to introduce a formal regulatory framework for district heating in the UK and grant powers to enable heat network zoning in England and Wales. This approach would grant ‘heat network zone’ status to certain areas which are appropriate for the construction and operation of district heat networks, with the aim of encouraging investment and growth in those areas deemed to be viable for district heating opportunities.

It is recognised that district heating will play a crucial role in the UK’s energy transition. With that in mind, the UK Government is committed to ensuring district heating users receive a fair price and a reliable supply of heat. As stated by Lord Lennie, one of the proposed amendments discussed at the report stage “would make it clear that the regulator needs to ensure that consumers of heat networks have equivalent consumer protection to those of other suppliers.”8 He goes on to refer to the Explanatory Notes for Clause 166, which “provides that [the Gas and Electricity Markets Authority] will be the regulator for heat networks in England, Wales and Scotland” and will allow the Secretary of State to “introduce regulations to appoint a different regulator by affirmative procedure”. The regulator in Northern Ireland will be “the Northern Ireland Authority for Utility Regulation (NIAUR) subject to a similar power to make changes by secondary legislation”.

In addition to the appointment of Ofgem as heat network regulator, the Bill will also give Ofgem the power to 8 https://hansard.parliament. uk/lords/2023-03-28/ debates/70DF67FA-CBE04BA9-B5B0-D0946FA24754/ EnergyBill(HL)

DISTRICT HEATING

introduce a licensing regime, through which district heating suppliers will be able to access permits for street works (enabling quicker and cheaper development of district heat networks) and allow the same use of land when building and maintaining heat networks as electricity, gas and water companies (further reducing costs and accelerating market growth). This licensing regime seeks to put district heating on a level playing field with other utilities and sends a signal to prospective suppliers and investors alike that the government is serious about its commitment to district heating technologies.

In the meantime, uncertainty for district heating customers and suppliers continues. As the energy crisis bites, homes reliant on district heating across the UK continue to be excluded from the government’s Energy Price Guarantee and it is not yet clear how new regulations will impact growth in the sector.

As the UK seeks to decarbonise and protect households and businesses alike from soaring energy prices, the passage of this Bill through Parliament is sure to be closely monitored.

INVESTMENT IN DISTRICT HEATING IN THE UK

The government has been explicit about how integral district heating will be to the UK’s net-zero transition. In order to achieve this, it is clear that investment in the industry will be needed in order to scale-up the UK’s current district heating capacity.

While the regulatory landscape is not completely clear, the direction of travel and signals from the government are encouraging, and there is clearly scope for investors to help shape the ultimate landscape.

If you’d like to discuss any opportunities in district heating in the UK, please contact one of the authors. www.wfw.com

Email: rayrton@wfw.com

London Trainee Ellen Mackie also contributed to this article.

ENERGY PROCUREMENT –WHERE TO NOW?

The word ‘unprecedented’ has surely never been more applicable to the energy industry than in recent times. Energy spend, traditionally entrenched within the top five areas of a business’ expenditure is perhaps even more important to organisations than ever before, with anecdotal evidence pointing to business strategies being increasingly shaped and defined by higher energy costs.

Regardless of whether organisations are now approaching the end of a long-term fixed agreement and facing inflated prices for the first time, coming off a short-term contract secured last year and now eyeing up savings, or are in the midst of executing a flexible procurement strategy of any description, most organisations will require a renewal or some hedging activity in respect of their electric or gas agreements within the next year or so.

The million-dollar question around prevailing energy markets is surely where to now? With government support no longer applicable to the majority of commercial organisations and a multitude of considerations to take into account, seldom has having a clear and comprehensive energy strategy seemed more business critical.

THE CURRENT SITUATION

Wholesale energy prices can certainly be considered favourable relative to recent barometers, however let us not forget that these still constitute levels that are around double traditional norms.

The sentiment of late, punctuated by revised and reduced inflation forecasts of around 3%, appears to reflect renewed confidence that the market will continue on its current downward trajectory experienced in recent months. Healthy gas storage levels and other key fundamentals support this theory.

That said, significant risk undoubtedly remains prevalent with geo-political issues continuing to be of heightened

concern, along with heavy reliance on LNG imports. If last year’s winter amounted to something of an idiom, with theories around higher prices and potential blackouts failing to materialise owing to favourable weather conditions and reduced demand from Asia (where covid restrictions were still being liberally applied), there can be no guarantee of a repeat this time around.

Then there are sustainability considerations. Despite everything that has happened in recent times, net zero is a subject that has never resided far from media or political attention, not to mention a growing awareness amongst the general public. Organisations from across the spectrum are increasingly coming under pressure from a variety of sources to reduce their carbon footprint.

REDUCING COSTS AND ENHANCING SUSTAINABILITY

Herein perhaps lies the biggest opportunity for commercial energy consumers. Reducing costs and enhancing sustainability credentials don’t need to represent conflicting agendas.

Reducing grid reliance whilst also increasing self-sufficiency through well-planned and managed on-site generation technology such as solar PV, wind or heat pumps not only enhances an organisation’s environmental credentials, but also offers significant financial benefit. Furthermore, if capital outlay is an issue in itself, then the technology can often be accompanied by a raft of funding options, alleviating any adverse impact on cashflow.

Indeed, energy efficient technology such as voltage optimisation, LED lighting, HVAC optimisation, heat re-cycling technology and gas fuel optimisation are also both evolving and becoming more cost-effective.

Larger organisations should consider the value associated with a comprehensive, granular energy site audit. Many larger organisations will be

obligated to undertake these imminently in order to comply with the Energy Savings Opportunity Scheme (ESOS) legislation.

If keeping grid consumption to a minimum should be considered an integral part of any strategy, the question then turns to what course of action to take in respect of the inevitable remaining grid requirements.

This decision is often subject to considerations unique to each business such as their appetite for risk, requirement for long-term budgetary certainty or any credit restraints. Fixing for at least a short-term period ahead of this winter would seem prudent, although flexible procurement is increasingly being adopted by, and proving beneficial to, many organisations. Whilst this involves sacrificing some element of budgetary certainty, the benefit derived in terms of offering flexibility and mitigating risk in the current climate is invaluable.

Other key considerations regardless of contract type would include whether to explore REGO energy or carbon offsets to further enhance environmental credentials, take/pay clauses to ensure businesses aren’t penalised for reducing their grid consumption and also reviewing options around non-commodity charges.

Making the right decisions now goes beyond competitive advantage and should surely take appropriate rank on any boardroom agenda. In the absence of any substantive in-house expertise, organisations should consider consulting with suitably qualified and experienced experts to discuss their options and ensure costs are mitigated as far as possible, whilst realising any net-zero or carbon reduction ambitions.

www.advantageutilities.com

Tim Ross, Commercial Director at Advantage Utilities

FROM INSTALL TO EXPORT: HOW TO MAKE THE MOST

AN ENERGY GENERATION ASSET

With increasing organisational focus on environmental responsibility, and with security of supply and price stability also major concerns, independent – or on-site – generation can provide a credible alternative to centralised power and its fluctuating costs.

The power generated by businesses, either on their premises or in dedicated facilities, already makes up a substantial amount of the UK’s energy supply. According to the government’s Digest of Energy Statistics (DUKES), which was analysed in our recent Future of Energy report, power generation by commercial and industrial facilities accounted for 57 TWh in 2020, representing 18% of the total electricity production in the UK.

Alongside the rise in popularity of onsite generation, the general demand from businesses for renewable, sustainable energy will likely also continue to increase.

Over the past few years, the energy industry has seen a huge amount of choice when it comes to new generation technologies and systems. From ‘deep green’ renewables such as wind, solar photovoltaic (PV) and hydro, to baseload sources of power produced from organic matter such as biomass, businesses now have a wide range of options if they want to move their power supply away from the standard grid supply offering.

So, if you are the owner of an energy generation asset, what is the best way to get your power to corporate buyers?

POWER PURCHASE AGREEMENTS: THE BEST ROUTE TO MARKET?

Power Purchase Agreements

(PPAs) are contracts that agree energy production output and its subsequent purchase. They are made between asset holders who generate renewable power and commercial buyers. In short, they are a valuable route to market for generators to sell their power.

PPAs are also becoming increasingly popular among business energy users as a way of managing energy risk. Our latest Business Energy Tracker report revealed that a third of

OF

Vish Sharma, Head of Power Purchase Agreements at npower Business Solutions

businesses are planning to use a PPA to hit their sustainability targets, so the market opportunity is growing.

As an established proven method of managing energy sales and risk in generation projects, PPAs encompass all the commercial terms required to deliver a route to market for generation. They include start date, delivery schedules, pricing mechanisms, payment terms and can include renewable certificates such as ROCs and REGOs. They are usually valid for several years and offer pre-set or to be determined prices for energy purchase.

A PPA can cover an existing generation asset or provide assurance and confidence to investors in the financing of new renewable projects. PPAs can therefore be agreed prior to a project becoming fully functional. Typically offering either fixed or flexible pricing arrangements, PPAs can provide an array of different buying and selling structures, depending on your requirements. Working with a partner that provides a bespoke approach should also be at the top of the decision-making process. We know there is no one-size-fits-all approach to meeting the energy requirements of businesses, so it’s important to work with a partner that is technology agnostic. For example, we work with a large variety of generation projects across differing technologies and generation profiles , so end user businesses have as much choice as possible.

UNLOCKING THE BENEFITS OF ENERGY GENERATION

Whether you are an independent generator, or an organisation with a sustainable on-site generation asset, there are several benefits to selling the power you generate.

• Environmental: making the switch to renewable power will help your organisation, other businesses, and the UK, meet our collective sustainability targets.

• Reputational: becoming an independent generator of renewable energy will enhance your reputation among your target audiences.

• Commercial: selling your excess power will provide you with a regular revenue stream to reinvest in additional sustainable technologies. You can also sell your renewable certificates (ROCs and REGOs), which will be used by suppliers to demonstrate that all or part of their energy comes from renewable sources. Whatever your organisation’s motivation, selling your power and renewable certificates provides economic, environmental, and social benefits, and will allow you to contribute to a more sustainable and resilient energy system.

MAXIMISING YOUR ENERGY ASSET

Over the past few years, the rapid growth in renewable power generation has transformed the energy landscape. As the UK transitions to renewable sources, we are seeing a more agile, innovative, and market-driven energy system. With an increasing number of businesses actively looking for cleaner, greener energy solutions, the role of independent power generators will be crucial to provide sustainable, affordable, and on-demand energy both now and in the future.

If you are at the start of your energy generation journey, npower Business Solutions has produced a new guide to help you get started, which can be downloaded from: https:// npowerbusinesssolutions.com/ resources/how-to-make-the-mostof-an-energy-generation-asset