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ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

NEWS

RINNAI AIMS FOR DOUBLE GROWTH IN LESS THAN 10 YEARS

innai, a UK leader in the manufacture and supply of heating & continuous flow hot water delivery systems and units for residential and commercial sites, has announced that it is planning on doubling its size within 10 years. The announcement, made by Managing Director Tony Gittings at a major event held at Skinners Hall in the City of London before a large audience of contractors, installers, consultants, estates managers and end-user organisation, detailed the company’s plans in a series of new product developments, marketing initiatives and service launches. In the 2019 the company has completed the following: • Launch of service division offering total offering customers Service Plans for peace of mind in knowing that, in the unlikely event of a problem, they have an instant answer to the problem. All inspections and all remedial works are carried out by Gas Safe registered engineers. It is a legal requirement for the obvious safety reasons that all works carried out to a gas fired appliance or system must be done by a fully qualified and registered gas engineer. • Launch of the new N series of hot water heating units - The Rinnai SENSEI water heater range offers a new, more compact and enhanced combustion design that allows for easier installation and enhanced operational performance and importantly increased levels of serviceability. All the components within the Sensei are designed and manufactured by Rinnai. This ensures maximum quality and reliability from the industry leader in commercial continuous flow water. • Launch of the A series of domestic hot water heating units • Launch of the Zen and Zen Plus home hot water & heating system which marries established and proven manufacture durability with new technologies to offer great energy efficiencies, user control and, importantly, unparalleled level of comfort.

The Rinnai Zen and Zen Plus system will increase comfort and reduce energy usage whilst also providing a highly economically solution for today’s changing marketplace. • Launch of the Trust Partnership with the formation of an installer network specifically for its domestic product range, the Zen & Zen Plus. The installer domestic partnership network includes all bona fide, Gas Safe registered, installers of residential heating and hot water units and systems. The launch is complementary to the recent introduction of the Rinnai Zen and Zen Plus domestic heating hot water system. The Rinnai range of hot water heating products are manufactured to the highest possible quality standards which ensures a long working life. Our reliability and commitment to customer service excellence is the industry standard. Rinnai is the UK leader in ErP ‘A’ rated continuous flow hot water heating units. The company makes and sells over 12 million gas appliances every year, which

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

are distributed globally to all parts of the world and are all ISO 9001 and ISO 1400I certified (International standard for environmental management systems). Backed with extensive warranties and fully qualified service teams, Rinnai is the first choice for continuous flow hot water, providing the most energy and economically efficient solution by using individual or multiple manifolded appliances. “Rinnai employ innovative manufacturing and testing techniques to deliver unparalleled levels of safety, comfort and efficiency. With the Rinnai Continuous Flow Hot Water System, you will never run out of hot water,” adds Chris Goggin for the company. www.rinnaiuk.com

Visualise and control your usage. Cut your energy waste. Get a complete picture of your energy and other services with SSE’s Business Energy Intelligence (BEI). Our visualisation platform lets you see and understand your energy, water, EV, carbon, heat, steam and virtual metering, and submetering. So you can cut your energy wastage, bills and carbon footprint. We already report on circa 200,000 meters – offering ‘snapshots’ of activity and alerts for wasteful scenarios. The reports come in shareable, static and interactive formats designed to drive tangible results. And, there’s even a Managed Service using machine learning and internal experts to do all the work for you. Basically, everything you need to reduce wastage and comply with energy legislation.

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NEWS

E.ON and TfL energy-saving project nominated for sustainability awards

major energy efficiency savings programme by E.ON at Transport for London’s Palestra building has been shortlisted for four energy and sustainability awards. The two-year project delivered significant carbon and cost savings at the central London building, a key office and operational hub for the capital’s transport provider. Palestra has so far seen an improvement in energy efficiency of more than 20%, producing savings on energy costs of around 42% or £470,000 each year and a carbon emissions reduction of 7% or 227 tonnes a year. The project teams have secured nominations for seven industry awards and have already won the prestigious CIBSE Facilities Management of the year award in February and the AEE Regional Energy Project of the Year in September. Next are four further major awards in the coming weeks; from the Association of Decentralised Energy (shortlisted in Commercial Building Project category), the Energy Institute (Energy Management), Building magazine (Building Performance) and the Energy Awards (Public Building Project of the Year). Quinten Babcock, Environmental Manager at TfL, said: “Palestra is a large and complex building with significant energy needs to support the people who help keep London moving 24/7. It was vital we sorted out the upgrades while the building remained operational.

“Since the improvements to our energy management systems, we’ve seen significant savings in terms of both energy costs and carbon emissions. We are seeing up to £1,650 a day in energy savings and with other improvements coming on line that performance is likely to improve even further next full year.” Michael Lewis, E.ON UK Chief Executive, added: “We’ve made a commitment to supporting businesses in meeting their emissions reduction targets through smarter, personalised and more sustainable solutions. We do that because we know businesses and organisations can play a key role in tackling the twin threats of climate crisis and improving the quality of the air we breathe. “Our work with TfL was guaranteed to deliver savings and designed to minimise any impact on operations at the site. The art of this project is we’ve not had to fund and install major new energy generation assets; this project has delivered significant success by optimising existing equipment, rather than simply replacing and starting anew, and allowing them to work together more efficiently to achieve savings.” E.ON’s business energy efficiency experts focused on improving the running efficiency and interoperability of existing systems such as the combined cooling, heat and power systems (CCHP) as well as optimising the controls and remote operation of the building management systems. It allowed for the most efficient use of the on-site generation systems including the CHP.

The project will provide significant savings in public expenditure for the longer term and help meet TfL’s environmental performance targets. The upgrades were carried out under the Mayor of London’s RE:FIT scheme which was established in 2009 to help make London’s public buildings and assets more energy efficient; reducing carbon emissions and providing guaranteed energy savings for organisations including London boroughs, the NHS, central government departments, schools and other educational establishments and cultural and heritage organisations. Under the RE:FIT framework E.ON guaranteed savings for TfL from the works over a given period meaning it is assured of a secure financial saving. RE:FIT London, which is jointly funded by the GLA and the European Union European Regional Development Fund, is helping to achieve the Mayor’s aim for London to be a zero-carbon city by 2050.

VATTENFALL TO BE KEY PARTNER IN VIRGIN MEDIA CONSORTIUM TO HELP REVOLUTIONISE ON-STREET ELECTRIC VEHICLE CHARGING

iberty Global, one of the world’s leading converged video, broadband and communications companies, today unveils details of a new project that utilizes the network infrastructure of its UK subsidiary, Virgin Media, to help revolutionise on-street electric vehicle charging. Vattenfall is a key partner in the delivery of this infrastructure. Leveraging Virgin Media’s 40,000 powered street cabinets and 170,000 km of ducts, Liberty Global’s project has been created in partnership with Innovate UK, the UK government’s research and innovation department, to help local authorities find a solution to limited on-street electric vehicle

charging points and thereby encourage more people to use electric vehicles. In addition to tapping Virgin Media’s powered network infrastructure, the project utilises the UK operator’s construction and deployment capabilities and its trusted relationships with local authority partners. Over the next 18 months, Liberty Global aims to deploy and operate 1,200 charging sockets across the country through the project. The rollout of Electric Vehicle Charging Stations using Virgin Media’s connectivity will build a fully scalable electric vehicle charging network, helping the UK government move closer to its goal of reducing net

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

carbon emissions to zero by 2050. Liberty Global is taking part in the project as part of a 19-strong consortium working under the project name Virgin Media Park & Charge. The consortium includes delivery partners Vattenfall and SMS plc and specialist technology partners Cenex, Ginger Town, Fully Charged, Connected Kerb, DETA and Loughborough University. This is in addition to several local authorities including the West Midlands Combined Authority as well as Councils in Oxfordshire, Liverpool, Southend on Sea, Worcestershire, Wandsworth, Croydon, Northamptonshire, Hammersmith & Fulham and Belfast. www.vattenfall.co.uk

NEWS

UK ENERGY MANAGERS ADMIT COST STILL OUTWEIGHS SUSTAINABILITY AS BUSINESS PRIORITY, SURVEY REVEALS

ess than one-fifth (18%) of UK energy managers say hitting sustainability targets is their number one business priority, according to a survey commissioned by npower Business Solutions, Energy HQ Survey of UK business energy/utility decision makers commissioned by npower Business Solutions, conducted by OnePoll: August 2019. Despite recent global attention on the environment following Climate Week in New York and net-zero pledges from many UK companies, 48 per cent of energy managers admit saving business energy costs still remains their primary concern. The findings are likely a result of increasing political and economic uncertainty in the UK: three quarters (75%) are concerned about potential business energy price hikes, with Brexit viewed as the greatest factor affecting business energy prices in the future (32%). In fact, 40 per cent of those polled believe a no-deal Brexit will lead to consistently higher energy prices in the medium-term and almost a third (28%) say they don’t feel prepared for these increased prices. When it comes to a potential change in government, respondents believe that this is likely to lead to increased price instability (60%), greater regulation (50%) and the continued rollout of new energyrelated policies to meet net-zero targets (56%).

FUSION21 ANNOUNCES £250 MILLION ENERGY EFFICIENCY FRAMEWORK

However, energy managers are already implementing a number of strategies and tools to help manage energy efficiency and better prepare their business for continued uncertainty. More than half (52%) have employed employee behaviour change programmes and 41 per cent are focused on engaging in a long-term (5-10 year) energy management plan. Ben Spry, Head of Flexibility Services at npower Business Solutions, Energy HQ says: “It’s great to see UK business energy managers already taking positive steps to plan for the sector’s uncertain future. We’re encouraging energy decision makers to engage in long-term, strategic planning to help reduce risk and improve resilience. By incorporating demandside response (DSR) schemes and other energy efficiency tools at their disposal into their longer-term plans, businesses won’t be forced to choose between cutting energy costs and hitting sustainability and decarbonisation targets.” Employee behaviour change programmes are also highly effective in reducing business energy consumption, with 42.8% of energy managers reporting they have led to the greatest reduction in energy use for their business. Other energy-saving business tools include, LED lighting (30%), and implementing energy monitoring tools/software (21%). https://energy-hq.co.uk/

WE ARE ALWAYS LOOKING TO BUY:

rocurement organisation and social enterprise Fusion21 has announced the launch of its national Energy Efficiency Framework – worth up to £250 Million over a four-year period. Specifically designed to meet the needs of the public sector – including housing associations, NHS trusts, bluelight organisations, education providers, local authorities and central government – the framework offers external and internal wall insulation, the design, maintenance and installation of domestic and non-domestic solar photovoltaic systems, battery storage and solar carparks, plus cladding replacement, electric vehicle charging points and LED lighting. Split into seven lots, the framework provides regional coverage and will facilitate local delivery. It has been structured to enable suppliers - including SMEs and specialist contractors, to bid for works suited to their capability, experience and expertise. Peter Francis, Director of Operation at Fusion21 said: “We welcome applications from interested organisations that meet the criteria set out in the tender documentation now available on the mytenders web portal – www.mytenders. co.uk – under Notice ID OCT158433”. The submission deadline is Wednesday 27th November 2019 at 12 noon. www.fusion21.co.uk

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11/11/2019 13:24:23

NEWS

City skyscrapers to become ‘green batteries’ of the future

ity skyscrapers could become green batteries of the future – thanks to a new form of energy storage patented by a UK firm. Edinburgh start-up Gravitricity has developed an innovative energy battery which works by raising multiple heavy weights – totalling up to 12,000 tonnes – in a deep shaft and then releasing them when energy is required. Analysts predict the system could store energy at half the levelised cost of lithiumion batteries – and already the greentech pioneers are planning to install their invention in disused mineshafts across Europe. They now believe they can install their technology in the foundations of new skyscrapers – turning the buildings into green energy stores. “Our idea is very simple. We use excess green energy to lift massive weights to the top of a shaft. These can then be stacked and released when required, delivering energy rapidly back to the grid,” says Gravitricity Managing Director Charlie Blair “In the early years we will install our technology in disused mineshafts as this will help keep the cost down. “But in the future, we will be able to sink purpose-built shafts wherever they are required – and the foundations of city buildings could be ideal.

“New skyscrapers bring substantial new electricity demand, and by building storage in the heart of cities we can massively reduce the requirement for very costly and disruptive grid upgrades. “At the same time, our system means that future skyscrapers could reduce their environmental footprint and help cities decarbonise their energy needs.” Blair says their 24MWh system – which comprises 24 weights of 500 tonnes – could power 63,000 homes for one hour. The total weight is equivalent to 84 blue whales.

The energy innovators have already received a £640,000 grant from Innovate UK, the UK Government’s innovation agency, and have teamed up with Dutch winch specialists Huisman to build a 250kW scale prototype of their idea “The climate emergency means we need to find new ways to capture and store green energy so we can use it when we need it,” Blair says. “We think city skyscrapers could be an exciting part of that future,” Blair concludes. www.gravitricity.com

ENGIE SECURES £90M LONG-TERM CARBON AND COST SAVINGS DEAL WITH EDINBURGH ST JAMES ENGIE will offer low carbon, affordable heat to all homes and businesses at the £1 billion mixed use development

NGIE, leading energy and services specialist, has partnered with Edinburgh St James, the 1.7 million sq ft development, to develop and operate a new low carbon decentralised energy scheme, worth £90m. The 33 year partnership will develop and operate a new low carbon energy scheme at Edinburgh St James, which will: • Offer substantial savings in terms of capital and operational expenditure; • Save occupiers the costs of onsite plant provision; • Serve all homes and businesses at the site with affordable heat and chilled water for cooling (where needed) • Ensure cost-savings and a low carbon footprint • Encourage sustainability and recycling throughout the site, by using electricity generated from the Energy Centre to supply power elsewhere.

By using a low carbon and cost-effective energy solution through the onsite Combined Cooling, Heat and Power (CCHP) energy centre, ENGIE, who is committed to long-term consumer cost-savings, will meet all residents and occupiers energy needs, right on their doorstep. CCHP typically has an energy efficiency of over 80 per cent compared with 56 per cent for a more conventional system. In addition, allowance has been made for expansion of the service into even more sustainable technologies as they are developed. The new energy centre is a part of the Growth Accelerator Model (GAM) agreement between Edinburgh St James, the Scottish Government and the City of Edinburgh Council. The funding from this innovative partnership is helping to regenerate the capital’s east end, with ENGIE’s recent deal the latest in a series of projects that have already benefitted

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

the local community and city as a whole. Cllr Kate Campbell, Housing, Homelessness and Fair Work Convener, the City of Edinburgh Council, said: “We have set an ambitious target of net zero carbon by 2030, so it’s very welcome that the Edinburgh St James development has plans for a low carbon, energy efficient scheme. The energy centre, which will be delivered as part of the infrastructure agreement with the council, will provide homes and businesses at the site with affordable heat and encourage sustainability by generating power to be used elsewhere” ENGIE is anticipated to complete the centre in late 2019. The retail element of Edinburgh St James is set to open in October 2020. https://home.engie.co.uk/

NEWS

ADDITIONAL STORAGE FACILITY OF 5MW HIGHLIGHTS COMMITMENT TO THE SOUTH SOMERSET ENVIRONMENT STRATEGY

outh Somerset District Council’s Battery Energy Storage site (BESS) that is at the cutting edge of renewable energy technology is set to be expanded to its maximum capacity by developing another 5MW with SSDC Opium Power Ltd to help produce and store more clean and renewable energy, which will provide essential support to the National Grid. The site near Taunton was developed earlier this year and represents one of the largest battery storage facilities in the country. At the time of being developed, the site was able to produce 25MW of power for the grid for one hour’s duration, but thanks to SSDC wishing to increase its green investments and commit to its new Environment Strategy the facility will now be developed out to its maximum to be able to produce 30MW of power for the grid for one hour’s duration. This is a new and additional development to the original BESS, but at the same site. With the South Somerset Environment Strategy being approved by Councillors only last week, the ability to deliver more renewable energy to more households across the UK shows SSDC’s commitment to delivering on its actions within the strategy and stride ahead swiftly to commence achieving its goals. The ambitious Environment Strategy promotes the development and adoption of a sustainable environment, economy and communities within South Somerset and helps to develop a strategy that will achieve a significant reduction in SSDC’s carbon emissions. The objective of the Environment Strategy is to help us achieve our aim of caring for and enhancing our natural environment and to adapt and mitigate the effects of climate change. Within the strategy, four priority outcomes have been identified which help SSDC will deliver its aims. The four priority outcomes are: • To reduce our reliance on fossil fuels • To reduce emissions • To minimise waste and increase recycling; • To offset carbon emissions Councillor Sarah Dyke, portfolio holder for Environment, said: “With the new Environment Strategy being formally approved only last week, this

is a great project to demonstrate just how important the environment is to our council. It highlights our commitment of taking immediate steps to deliver on our ambitious objectives, as we move to reduce our carbon dependence for the benefit of all. This is the first of many other exciting projects yet to come.” Councillor John Clark, portfolio holder for Income Generation, said: “Not only is this a strong project under the council’s Environment Strategy, but a sensible and viable business decision to generate further income from our assets, within our balanced investment portfolio, ensuring that this council can deliver services to our communities for the future in a sustainable manner.” A spokesman from Opium Power added: “We are excited to be working with SSDC to expand the capacity of the Battery Energy Storage System at Fideoak Mill by a further 5 MW. The services provided by this energy storage system are vital to the Grid now and in years to come to ensure the Grid remains stable and balanced. Currently, fossil fuels contribute over 40% of the UK’s electricity supply. Over the next decade this fossil fuel energy provision is due to be replaced by renewable energy sources. The provision of energy by renewable sources is subject to large variations due to the intermittent nature of the wind and sun. Battery Energy Storage evens out the inevitable peaks and troughs of renewable energy supply and is therefore essential to enable a constant, balanced and controlled energy source for the nation. “It is also important to note that this project will provide a significant financial return to SSDC over the next few decades. The undeniable emergence of renewable sources as the predominant provider of electricity in the near future secures this project’s commercial value in the energy marketplace.” Thomas Jennings, Head of Optimisation at KiWi Power Ltd, said: “We’re excited to be working with SSDC Opium Power

as they expand this innovative project from 25MW to 30MW. At Fideoak, KiWi Power has deployed the latest iteration of its distributed control system, which enables advanced control and optimisation capabilities. With two more coal plants due to close in March 2020 and renewable penetration increasing, prices will become more volatile, creating greater revenue opportunities for fastacting battery energy storage assets. We will use our expertise and technology to optimise the battery in real-time and deliver maximum value and sustainability impact on behalf of our project partners.” The council has created this BESS with Somerset-based Opium Power Limited, BYD, BSR Connect and KiWi Power Limited to provide essential power management assistance to the National Grid. It will be the largest council-owned battery storage system in the UK and the additional phase for 5MW comes as a result of wishing to drive ahead with Environmental Strategy commitments and the approval of a viable business case for c.£2.5m from SSDC’s investment fund, to enable the BESS site to maximise its benefits and storage capacity at 30MW. This new project ensures that SSDC makes the most from its assets for both financial return and our environment. www. southsomerset.gov.uk/latest-news

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

NEWS

SGS AND SSE’S DISTRIBUTED ENERGY ARM ENTER LANDMARK PARTNERSHIP TO SUPPORT SMART CITIES AND LOCAL ENERGY DECARBONISATION

lobal clean energy software company, Smarter Grid Solutions (SGS), and SSE’s Distributed Energy business have signed a landmark partnership to develop an innovative ‘Energy as a Service’ platform. The new system will bring together SGS’s distributed energy resource management system (DERMS) software and SSE Enterprise’s capabilities in distributed energy generation, EV infrastructure, private electricity networks and heat networks under a single platform. This platform will optimise energy usage to generate revenue, deliver enhanced security of supply and meet carbon reduction targets, building upon SGS’s existing smart grid platform, ANM Strata, which controls energy assets and load to manage constraints in the

underlying network to which they are connected. The capabilities will be enhanced, in time, to provide functionality to generate revenues from opportunities in a number of UK markets including Wholesale, Balancing, and Ancillary Services, as well as enabling behind the meter and building energy optimisation. The platform’s algorithms and fastacting, high quality control capability will be further enhanced by the experience and expertise of SSE Distributed Energy. Graham Ault, Director at Smarter Grid

Solutions, said of the partnership: “The partnership with SSE Enterprise is the culmination of a significant investment to enhance our DERMS platform to manage diverse energy assets, deliver flexibility and provide multiple market interfaces, adding to our already proven distribution network management capabilities. www.smartergridsolutions.com

CHOICE ENERGY FRAMEWORK HAS SIX APPEAL!

NERGY MANAGEMENT LLP has launched its unique, six-pronged Choice Energy Framework (CEF), to help reduce Public Sector energy expenditure. Involving up to six energy suppliers, the framework allows public sector bodies to access the best energy solutions. The six suppliers have been shortlisted on the basis of tariff competitiveness, billing accuracy, max/ min volume threshold restrictions and terms and conditions. Each supplier will be invited to offer contracts for a duration of 12, 24, 36 and 48 months, allowing for greater flexibility than is currently found in the marketplace. The Choice Energy Framework is also compliant with the Official Journal of the European Union (OJEU) – the online home to all public sector contracts worth above £363,424 – thereby sparing all signed-up organisations from timeconsuming red tape and admin fees that could amount to as much as £20,000. Years of experience in public sector energy procurement has enabled

Energy Management LLP to understand what clients want, explains Energy Management LLP’s senior energy consultant, Malcolm Barrington. He said “Energy Management have been working closely with many councils and other public sector bodies to procure and manage their energy. We have seen how central purchasing centres procure a framework with just one energy supplier. How can this be a competitive way to buy energy? “Energy Management’s “Choice Energy Framework” is new to the marketplace and really does provide choice and competition. “Our CEF framework has been procured through OJEU and provides framework participants with a panel of up to six suppliers to tender supplies via mini-competition. “We are excited to be able to provide a different type of energy framework that gives control, choice

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

and competitive pricing back to public sector bodies across the UK.” According to a recent report, energy is estimated to cost the public sector £3.4 billion, with over half that figure attributed to Healthcare, universities and defence. For public sector organisations with increasingly tight budgets, reducing their energy spend is a top priority. The Choice Energy Framework allows clients to do that. For more information on the Choice Energy Framework, contact Malcolm Barrington on 01225-867722 or email mb@energymanagementltd.com.

OPINION

SMART METERS ARE NOT SO SMART – JUST DO THE MATHS

nother Government project over budget and late on delivery, wait another 4 years we are told, in this case, Smart meters with cost spiralling to £13.5 billion up from the original £2.5billion originally forecast. “Once again, the Government and energy experts seem to have their maths wrong”, says Mark Sait, CEO of SaveMoneyCutCarbon, a fast-growing UK tech business that helps business and homes use energy and water in more sustainably. Sait goes on, “Can we please start focusing on the basic maths and on reducing actual usage for homes and business alike? “Smart meters are there to mainly help one small set of organisations – and that is not the consumer – it is the energy companies. “On average, two-thirds of an energy company’s staff are dealing with billing enquires, like chasing meter reading, dealing with homes moving from tariff to tariff, incorrect bills and so on. Smart Meters will be great as they will send the meter readings in real time to the energy companies; why, so they can remove this burden and cost of the back of the support, reduce their headcounts and make their profits even higher” says Sait. “Andrea Leadsom and her department are saying each household will save £36.00 by 2034; Robert Cheesewright of Smart Energy GB, the firm set up to promote the devices, said: ‘The financial and environmental benefits for households and the country far outweigh the costs by billions of pounds’”. Sait asks: “Can someone show us the maths as £13.5 billion is being spent and it is a large amount of money – what else could it be used for?” What is clear is the linear savings Sait’s company SaveMoneyCutCarbon and others like it can deliver for households. “The facts speak for themselves”, Sait goes on. “Let’s take the standard 60 watt light bulb still common across millions of UK households as the most simple example. If this is on 10 hours per day in your home or business at an average of 11p electricity charge per unit, (and

this is only heading one way and that is up, to pay for the smart meters) it will cost you £23 pounds per year to run one such lamp in your home. “Now let’s move to a good quality LED lamp (same shape, same fitting, same light) this will reduce your energy consumption by 90%. So now the same lamp will cost you only £3.40 to run for a year, so saving for each lamp circa £19.00 per year”. Similar linear savings can be applied to other products that are helping SaveMoneyCutCarbon grow to its present multi-million-pound turnover, from just an idea Sait and co-founder Charlie Farr, had only 6 years ago. “Our ever-growing customer base, can do the maths, so what is the government missing, we all need to deliver real savings to UK homes if we are to hit carbon targets and help the planet, it’s not about swapping suppliers every 5 minutes as the Government continues to promote. Many of the smart meters become dumb the minute you change. It’s about real savings from reducing real usage of energy used for lighting, through deploying good LED lighting in huge volumes; energy used to heat homes through fitting simple products like RadBot to the 100 million radiators in the UK, controlling radiators when rooms are empty, saving a typical household 30% on heating bills; through to eco-smart technology in water-saving showerheads, as energy is still being used to heat the water for the shower we have every day”, Sait states. “Let us stick with the LED lamp as just one example; typical cost as low as £3.00 per lamp for a branded good quality LED bulb from SaveMoneyCutCarbon. Let’s assume a typical house has ten (10) x 60 watt standard lamps that could be replaced, so a cost on average of £30.00 per household. Assuming 25 million households in the UK, the Government could fund LED for us all at a cost of

circa ¾ of a billion, so saving over £12 billion while delivering an average saving per household on energy bills of £190 per year per household from the moment they are installed, vs the claimed £36.00 in 2034 that Andrea Leadsom’s advisers have given her as a possible saving some time in the future. “Let’s look at it another way. We could give LED lamps to every household and have enough left over to build 50 new hospitals at £90 million each, build a hundred new schools at £45 million each, employ thousands of nurses, policemen and teachers and still have a £billion in change left over vs what is being spent on smart meters”. There is also the added landfill and Carbon reduction benefits Sait goes on the add; “Your typical incandescent light bulb will last circa 2000 hours before it blows and goes in the bin, your equivalent quality LED will last 50,000 hrs so 25 times longer, less cost to the user, less landfill, less carbon footprint in making lamps. Let the maths drive the debate”. www.savemoneycutcarbon.com/

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

OPINION

REDUCING EMISSIONS – IMPROVING SUSTAINABILITY Paul Sheffield, COO, Haven Power

he government estimates that greenhouse gas (GHG) emissions were 42.1% lower in 2017 than they were in 1990. And provisional final figures for 2018 reveal a further 2% decrease in carbon dioxide (CO2) emissions. This positive shift is mainly due to the energy sector reducing emissions by 7% after replacing coal with renewables. Nuclear and renewables – both low carbon energy sources – accounted for 47% of the fuel used for electricity generation in 2018: an increase of 25% since 1990. The energy sector’s drive to promote decarbonisation is being echoed in the public sector. The Greening Government Commitments 2016 to 2020 policy paper outlines this intent, stating the goal of reducing GHG emissions by at least 43% from a 2009 baseline. Greater Manchester Council is one public sector organisation committed to reducing GHG emissions and improving energy efficiencies. It’s proposed a carbon budget, highlighting to residents the benefits of becoming a zero-carbon city by 2038. And Salford City Council has already signed up to an energy contract delivering 100% renewable electricity. These local and regional efforts are being replicated on the national stage too. In 2019, the UK became the first of the G7 group of industrialised nations to legislate for net zero emissions by 2050. In addition, the government’s

Clean Growth Strategy outlines 40 policies to help increase the pace of clean growth by reducing emissions and improving energy efficiencies. The plan includes targets that affect the public sector directly, such as leading the way in the transition to zero emissions vehicles. Council offices, hospitals and education establishments also have a goal: to achieve a 30% reduction in carbon emissions by 2020-21. These strategies are driven by the government’s desire to fully understand its current energy consumption, generation and emissions.

AUDIT FOR SUSTAINABILITY ACTION Audits can show public sector organisations how they’re using energy and reveal the level of associated emissions. They can use this information to set bespoke targets and create plans to meet those goals. A commercial energy audit doesn’t just focus on energy use, or even on energy efficiency measures; it also looks for

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

new business opportunities emerging from energy improvements. Typically, an audit will follow a detailed energy cost and efficiency analysis, including feasibility studies, and provide tailored information covering financial, energy and emissions savings. The audit process covers physical checks to buildings and reviews historic consumption information. The outputs will typically include energy efficiency and environmental impact targets, plus expert advice on how to address these goals through prioritised efficiency measures. There will also be information about grants and funding access, business case support, return on investment forecasts, and scenario planning. Ultimately, the audit is a key part of a wider energy optimisation approach that’s part of a best practice strategy. This enables public sector organisations to confidently invest in the most valuable efficiencies with a strong understanding of associated energy reductions or potential income streams. Having access to experts throughout this process helps to cut through any confusion around energy optimisation and ensure the public sector invests as wisely as possible. With this achieved, the public sector can then implement energy strategies that best meet its sustainability targets. Key elements will include choosing a 100% renewable energy supply and adopting the latest energy-efficiency measures and technologies.

OPINION

SMART MONITORING The new generation of smart meters constantly monitors and records energy usage then shares the data with the energy provider. In addition to ensuring accurate bills, this could allow a public sector organisation – working in partnership with its supplier – to track consumption patterns over time. These insights have the potential to help alter behaviour around power consumption. What’s more, the smart grid could evolve, allowing distributed generation (generally done at a smaller scale than the traditional centralised model) to become more prevalent. This could give the public sector more flexibility in choosing when to consume or purchase electricity. It could also increase the likelihood of the sector being able to switch to self-generated power when it wants to – and take advantage of schemes such as demand side response (DSR) schemes and power purchase agreements (PPAs).

DSR SCHEMES As an increasing number of intermittent sources of energy, such as wind and solar, become available on the grid, balancing supply and demand also becomes more complex. However, DSR schemes can help public sector organisations to manage this.

DSR participation permits organisations with electricity generation and energy storage capabilities to switch away from the grid at peak demand times. Departments doing this will be rewarded for reducing energy costs.

PPAS PPAs enable organisations to enter into a buying arrangement to support local renewable energy generation. Linking to the renewable power markets protects the public sector from energy price shocks, lowers its carbon footprint and supports the addition of more renewable energy to the grid. And, organisations with their own renewable generating capability can sell their electricity as well.

ELECTRIC VEHICLES (EVS) The sustainability benefits of EVs are undeniable; they’re non-polluting in their use and may be used to support renewable energy generation and balance the grid in the future. In addition, battery range is improving all the time – we’re soon likely to see affordable vehicles capable of covering 300-400 miles on one full charge. The government has confirmed its ambition for at least half of new cars being ultralow emission by 2030. It’s also planning to lead the way in EV take-up, committing to

making 25% of its central vehicle fleet (i.e. within the public sector) electric by 2022.

CONCLUSION Reducing emissions and improving sustainability is about embracing new schemes and initiatives as they become available. The convergence of technologies means that it’s possible to amplify the benefits of one with another’s. For instance, an EV fleet can be charged via solar panels, and the fleet owner can release stored energy back to the grid when power usage is high. This can help avoid or reduce high grid costs, or be integral to DSR or PPA activity. However, so much choice can make it hard to select the best options. Energy experts can run comprehensive audits and create bespoke strategies to help organisations reach their sustainability and business goals within the targeted timescales. In the next 10 years, there will be substantial changes to how we understand and consume energy. Climate change is currently centre stage as organisations continue to lobby the government to enforce net zero emissions much earlier than the existing 2050 target. The public sector should lead by example, supporting investment in the required technologies and helping the country make the transition. www.havenpower.com

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NEWS STORY COVER

WHAT SHOULD COME FIRST SOLAR PV OR REPLACING TRANSFORMERS? Ayah Alfawaris, Wilson Power Solutions

calories, weight, price and nutritious value. Similarly, comparing solar PV to transformers is valid taking in mind the Net Zero targets and the very little we can do with the allocated resources and the technical limitations. Everyone knows that as a rule of thumb in energy, efficiency comes before generation just like reducing comes before recycling in the 3Rs. After all, what is the use of generating green electricity if it is going to waste?

WHY TRANSFORMERS?

omparing solar Photovoltaic systems to distribution transformers is not exactly straightforward, the former is used for generating electricity and the latter for transmitting and distributing it. Does that make it a case of apples and oranges comparison then? Not quite. The shift to renewable energy surged exponentially after the prices per kWh have come down. Governments and big corporations realised that diversifying the energy mix and including renewable generation is not only good for the environment but also for energy security. In the past 12 months, almost half of the electricity generated in the UK was low carbon. 4% of which was generated by solar PV, making it the seventh biggest electricity source in the country. The government has invested a lot in solar PV, from funds and incentives to legislations that allow users to export electricity to the grid through feed-in tariff previously and smart export guarantee now. Transformers, on the other hand, have not received any support from the government. No one wants to talk about grey boxes that get installed and forgotten for decades regardless of how much energy they waste or carbon emissions they emit. We realise they are not as attractive as other emerging technologies, but they offer a huge potential for energy savings that have been overlooked for years. We argue that comparing apples to oranges is doable, taking into consideration

The main function of distribution transformers is to convert the electrical current from one voltage to another. Transformers waste energy as a byproduct of their operation. The wasted energy happens on two forms; load losses and no-load (core) losses. Transformers are responsible for 25% of the UK’s network losses. The EU estimates that 2.9% of all electricity generated across the continent get wasted through transformer losses, according to 2008 across the EU27. That amounts to 93.4TWh which is enough to power Denmark for 3 years. When the conversation about energy efficiency takes place, people immediately start thinking of ways to save energy inside the building (lighting, double glazed windows, inverter air conditioning, etc.) but very little think of transformers. Transformer losses, despite being undesirable, they are unavoidable. But we at Wilson Power Solutions spotted a great energy efficiency opportunity in reducing these losses.

AMORPHOUS TECHNOLOGY Core losses occur 24/7 from the moment of energising the machine, the only thing we could do about it is changing the core metal material from Cold Rolled Grain Oriented (CRGO) steel to amorphous metal. The cores of conventional transformers consist of stacks of laminations that are made from silicon steel with an almost uniform crystalline structure (CRGO). In transformers with amorphous cores, a ribbon of steel is wound to form the core. The big benefit of amorphous transformers is that amorphous steel has lower hysteresis losses. Simply put, this means that less energy is wasted as heat during the magnetisation and de-magnetisation of the core.

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Amorphous metals are made of alloys that have no atomic order. They are made by the rapid cooling of molten metals that prevents crystallisation and leaves a vitrified structure in the form of thin strips. Due to the lack of systematic structure, this type of metal has also been given the name “The Metallic Glasses”.

ECO DESIGN DIRECTIVES The European Commission issued regulation No 548/2014 on implementing Directive 2009/125/EC regarding small, medium and large power transformers. The regulations are referred to as Eco Design Directives for Transformer Losses Tier 1 and Tier 2. Tier 1 was effective as of the 1st of July 2015 and Tier 2 will come into force on the 1st of July 2021 (almost two years from now). Tier 1 and Tier 2 regulate transformer losses by forcing most new built transformers to have improved (less) losses. At Wilson Power Solutions, we believe these targets could be pushed even more. We launched two amorphous metal core products to exceed Eco Design losses, Wilson e2 super low loss transformers and Wilson e3 ultra low loss transformers.

EUROPE’S MOST EFFICIENT TRANSFORMER Wilson e3 Ultra Low Loss transformers are believed to be Europe’s most efficient transformer. We pushed the losses low to create a great case for energy savings and carbon reduction. Installing an Ultra Low Loss transformer instead of Tier 1 complaint transformer could save organisations over 18,000 kWh of electricity and 5.2 tons of CO2 emissions per annum. This is not just a great energy efficiency potential, but it adds £75,000 to the bottom line. Both the super and Ultra low loss transformers, (Wilson e2 and e3), have proven to provide superior operational efficiency when working alongside in-built voltage management capabilities, achieving savings both financially and environmentally. This has attracted large organisations from varying sectors especially after the technology won the prestigious IEMA Sustainability Impact Award for having over a thousand installations across the UK and helping many organisations meet their carbon reduction targets. Retail giants such as Tesco, ASDA, Sainsbury’s, Morrisons and IKEA have

COVER STORY NEWS already benefited from Wilson Power’s energy-efficient transformers and some are now looking to invest further. Global manufacturers in the shape of Unilever and McCain Foods have also been utilising the pioneering technology but it’s not only the private sector that are seeing the rewards. The public sector has also seen dramatic changes since enlisting the support of Wilson Power Solutions. The NHS and their hospitals have made significant financial savings. For instance, Ninewells hospital in Scotland is projected to make an energy saving of 304,000kWh over a five-year period. This equates to 135,564kg less carbon and monetary savings of over £143,000. The education sector is also beginning to see the impact, with large universities like Edinburgh University, the University of East Anglia and the Manchester University all looking to save both energy and money whilst reducing their carbon footprint.

SOLAR PV OR TRANSFORMERS? Through the Freedom of Information (FOI), we made a request to Ofgem enquiring about the average age of transformers in the UK. The response was surprising that the average is 64 years. There are transformers that were installed pre-1950 and are still up and running but unnoticeably, are silent energy guzzlers. The ideal age of a transformer should be around 30 years. Most transformers are designed for 25 years of operation. Replacing old inefficient transformers with new Eco Design compliant ones makes perfect financial and environmental sense. We power our Leeds factory at Wilson Power Solutions with solar PV panels. We believe organisations should invest in both solar PV and transformer replacement when they can. The only problem with that is when budgets are tight or there is no space to install solar panels. But if it is a question of which, transformer replacement makes more sense. Taking a case of replacing an average 1000 kVA transformer installed in the 1990s with an Ultra-Low Loss amorphous one could save an organisation over 32GWh of electricity every year. This helps organisations avoid more than 9 tons of CO2 emissions annually. Over its lifetime, the new transformer would have saved the owner over £120,000 after paying back the initial investment just through improved losses.

THINKING NET ZERO There are 230,000 substations in the UK as of 2011. Some references mention 400,000 substations in the UK. Based on only 230,000 substations and assuming that every substation has one transformer of an average of 800 kVA and only 10% of them are old transformers and are ready for replacement. This brings us down to 23,000 transformers, if replaced with Ultra Low Loss Transformers, that exceed Eco Design Tier 2 losses, the UK would save 772 GWh and 0.217Mt of carbon annually. This is equivalent to 2% of the reduced emissions between 2017 & 2018 in the country. Thinking of a smaller scale and

an easy “apples versus oranges” situation, energy efficiency should come first, thus, an organisation should ensure to have the least energy wastage in place before thinking of generating electricity. At our premises, we do both and we recommend both to our clients. Realistically speaking, unfortunately, resources are limited and if it was a choice of which technology to invest in first, transformers make more sense thinking carbon and £ per kWh. Carbon wise, replacing an old 1990s transformer with an Ultra-low loss one is equivalent to generating energy from 100 solar panels (instead of fossil fuel) and is 60% cheaper. Contact Ayah Alfawaris: ayah@wilsonpowersolutions.co.uk www.wilsonpowersolutions.co.uk

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MONITORING & METERING

HAVE YOU SEEN THE LIGHT? How much of the energy consumed in a typical building is accounted for by the lighting? If you don’t already know, you’ll probably be amazed that the answer is around 40%! As lighting is such a big contributor to the energy bill, it’s clearly an area that’s well worth looking at when it comes to making savings. But when considering economies, there are some important requirements and regulations to bear in mind, says Julian Grant of Chauvin Arnoux.

e all need light to work and, as an online search will quickly confirm, any number of studies have shown that good lighting increases worker productivity and wellbeing. So perhaps the 40% of your business’s energy bill that pays for lighting is money well spent? Maybe, but when such a large amount of expenditure is involved, it’s important to be sure. And, in reality, a little investigation will often reveal ways in which energy costs for lighting can be significantly reduced while maintaining or even improving the lighting environment. Since lighting is so important for efficiency and safety, it might be expected that there would be statutory requirements for workplace lighting levels. In the UK at least, this is not the case, although it is important to bear in mind that the Workplace (Health, Safety and Welfare) Regulations require lighting to be “suitable and sufficient.” Rather more detailed and helpful guidance is, however, provided in the publication “Lighting at Work” (HSG38), which is available as free download from the Health and Safety Executive website (www.hse.gov.uk). This publication includes, for example, a table showing recommended minimum lighting levels for various work locations. Further guidance on lighting is available from the Chartered Institution of Building Services Engineers (CIBSE) which publishes a code for lighting that is supplemented by a range of guides covering specific types of buildings such as offices, hospitals and sports facilities. These publications can be purchased from CIBSE. After the appropriate light levels for a particular workplace have been determined, the next requirement is to check whether they are actually being achieved. This requires the use of a light meter (sometimes called a luxmeter). Simple types allow spot readings to be taken at any given location, but they are not ideal for checking the workplace environment for two reasons. The first is that lighting needs to be evaluated over an area, to ensure that light levels are adequate throughout the whole workplace and that there are no shadowed or dimly lit areas. The second reason is that lighting levels can vary throughout the working day or even from season to season,

especially when natural light makes a major contribution. Lighting levels in particular areas may also fluctuate as people move around and cast shadows. For these reasons, a logging light meter, such as the Chauvin Arnoux C.A 1110, is a much better option. This particular instrument has a mapping function, which allows the light levels throughout a room to be plotted automatically to confirm that the lighting is uniform and adequate. It can also collect and store results over time and can, therefore, be temporarily mounted in a particular location – it is magnetic, which makes mounting easy on any steel surface such as filing cabinet – when it will collect readings over hours, days or even weeks. These readings can then be downloaded to provide accurate and detailed information about changes in the lighting level throughout the monitoring period. Obtaining accurate information about lighting levels is, of course, only the first step for those concerned with energy economy. The next step is to determine exactly how much energy the lighting system is using, and to identify areas where savings could be made. The key to achieving this is to use a portable energy logger (PEL). These versatile instruments can be easily installed at the distribution switchboard that supplies the lighting systems and will monitor energy usage over time. Some types can monitor multiple circuits simultaneously. The results obtained from a PEL are often surprising and may even be horrifying! A frequent finding is that there is excessive out-of-hours energy usage – or, to put it another way, people forget to turn off the lights when they leave the building. Interestingly, a recent survey carried out by British Gas has

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shown that up to 46% of the energy used by SMEs was consumed outside normal business hours, so this is clearly an area worthy of careful consideration. Fortunately, the solution is relatively simple: install a last-person-out switch so that the last person leaving the building can operate this single switch to turn off all of the lighting that’s not needed when the building is empty. Occupancy sensors can also be fitted to turn off the lights in individual rooms that are not being used. It shouldn’t be forgotten, however, that energy can be wasted on lighting even when the workplace is occupied and in use. It’s all too easy, especially in the winter months, to turn the lights on when natural light levels are low in the morning but neglect to turn them off later when natural light levels increase. The solution here is to install daylight sensors as part of the lighting controls. In addition to effective control, another key factor in the energy efficiency of lighting is, of course, the type of light source. These days, in almost every case, the best choice will be LEDs. Not only are LED light sources much more energy efficient than other types, they also have much longer lives and therefore greatly reduce maintenance costs, especially in large installations. When

MONITORING & METERING installing or converting to LED lighting, however, there are a few caveats. In particular, the cheapest options may be far from the best choice. Cheap LEDs may have poor colour temperature, or colour temperature that is inconsistent as they age. They may be unreliable, and they will typically have shorter working lives than their apparently more expensive counterparts. It’s worth remembering that if an LED light source is half the price of a competitor but needs to be replaced once a year rather than once every five years, over the five year term it’s actually 2.5 times more expensive. And that doesn’t even take into account the cost of installing the replacements. Also important to bear in mind is that not all types of LED light source are compatible with every type of control system, especially if dimming is required. For these reasons, it’s best to work with an expert LED lighting supplier who will provide dependable guidance and advice, particularly for large re-lamping projects. When all the right control systems and all the best energy-efficient light sources are in place, there are two more essential tasks to be tackled. The first is to carry out another lighting survey with the light meter, to ensure

that the planned lighting levels are being achieved. The second is to monitor the energy usage again with the PEL to ensure that the expected energy savings are being delivered. These procedures will confirm the immediate effectiveness of the changes and upgrades that have been put in place, but they should not be considered as one-off events! Lighting surveys and energy monitoring should, in fact, be repeated periodically as part of routine maintenance procedures. This is because even the best of light sources lose output and shift in colour over time, and it’s by no means unknown for minor faults to develop on lighting systems – for

example, are the daylight sensors still working? – which increase energy usage but could pass unnoticed without an energy survey. As we’ve seen, there is the potential for many businesses to significantly reduce the amount of energy they use for lighting, with corresponding reductions in expenditure and environmental impact. The keys to unlocking these savings while providing lighting that will boost staff productivity and welfare are to install the right light sources, then regularly monitor their performance with a good logging light meter and a portable energy logger. These instruments are an excellent investment. They are modestly priced and they will pay for themselves in next to no time! https://www.chauvin-arnoux.co.uk/en

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ENERGY DATA

THE IMPORTANCE OF PROTECTING ENERGY DATA An ever-increasing number of online threats and a vibrant market for illegally acquired energy information mean that companies would be well-advised to review their energy management software, says Steve Kemp, business development director of Optima Energy.

or those who have been keeping an eye on the data debate, the last 12 months have provided several sharp reminders about the perils of failing to adequately protect information resources. Major corporations and public sector bodies alike have been affected by data breaches, and often paid the price both in terms of financial cost and public perception. Most recently, British Airways was issued with a record fine of £183 million following a large-scale cyber-attack that led to details of an estimated 500,000 customers being harvested by hackers. The NHS has also been at the centre of several headline stories. Months after announcing that it was to make a major new investment in cyber security, a July 2018 news story saw the service citing a coding error as the cause of the accidental sharing of health data belonging to 150,000 patients. And earlier this year, research found that the use of outdated software and operating systems in the NHS was leaving the health service vulnerable to attack. The BA fine was the first to be imposed since the introduction of the new General Data Protection Regulation (GDPR). Widely regarded as the most significant reform of data privacy in two decades, GDPR requires controllers of data to put in place ‘appropriate technical and organisational measures’ to implement the data protection principles. Businesses must report any data breaches within 72 hours, while companies who violate the rules may be fined up to 20 million Euros or four percent of their annual worldwide turnover for the preceding

financial year – whichever is greater. It would be an understatement to say that GDPR has prompted renewed scrutiny by many organisations of their data protection arrangements. In terms of its potentially catastrophic impact on a company’s prospects, data breaches have always been extremely bad news. But with the scale of the new regulations there is now a very pressing legal and financial impetus for data protection to be prioritised.

‘SECURE SOFTWARE IS VITAL’ Little by little, there are indications that more organisations are investing larger sums in data security. The recent news from UK-based think tank Parliament Street that NHS trusts have increased their spending on cyber-security is obviously to be welcomed. But it’s very likely that the current investment levels are not adequate to deal with all of the emerging threats. Although some businesses have made more progress than others, one particular area that is largely overlooked by many organisations is the security of energy management software. The potential markets for illegally acquired energy data should not be underestimated: for instance, think of the energy broker who would be very keen to obtain a detailed picture of a company’s energy usage, or a renewable energy provider who could shape an entire marketing initiative around this kind of information. These are potentially lucrative markets for organised hacking operations. And too many business are at risk. Investing in energy management software should be an integral part of any data security strategy. Reviewing and maintaining the integrity of IT infrastructures and databases is crucial, and bound to become more so as hackers finesse evermore ingenious methods of infiltrating systems.

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By its very nature data protection will always be a moving target. And with the ever-growing demand for digitalisation, organisations of all sizes are open to the possible onslaught of cyber-attacks. It is the fact that cyber threats can go unnoticed until the real damage is clear that makes them so dangerous. Security initiatives, such as the Information Security Management Standard ISO 27001:2013 and Cyber Essentials Plus - a Governmentbacked scheme to help organisations protect themselves against common online threats - should be seen as essential in ensuring the software you have in place remains as robust and impenetrable as possible. But this is only the starting point in staying one step ahead of the hackers and protecting customers from emerging threats. Which is why it makes sense to work alongside partners who are not only compliant with industry standards but also have a trackrecord of ensuring energy security. We are committed to ensuring the confidentiality, integrity and availability of data. Protecting such important data is a critical responsibility we have to our customers, and we continue to invest and work hard to maintain that trust, with our robust systems outlined in our recent security whitepaper. The unprecedented nature of the BA fine underlines the seriousness with which data protection is now being taken, while the issue’s continued prominence in the media ensures that public awareness will remain high. It’s certainly an area where companies will have to maintain eternal vigilance, but an investment in robust energy management software can provided guaranteed reassurance in at least one major area of operations. https://www.optimaenergy.net/

ENERGY MANAGEMENT

THE 4 ELEMENTS OF A SUSTAINABLE UTILITIES STRATEGY

he UK’s net zero legislation and 2050 target is crucial to ensuring we all play our part in limiting global temperature rises. In the short term it will mean new regulations and raised operating costs for businesses already dealing with political uncertainty, increased competition, complex supply chains, talent shortages and more. Fortunately, help is available.

A UTILITIES SOLUTION THAT’S BUILT FOR YOU Rethinking utilities consumption is one way in which businesses can contribute towards climate action while also protecting the bottom line. Measures taken to reduce carbon emissions, cut waste and help balance our power grid also have the potential to reduce spend, create new revenue and ensure commercial resilience for the future. Here at Inspired Energy, we’ve dedicated ourselves to offering the most complete utilities solution available; building specialist teams to cover the full array of a business’ utilities needs. It’s what makes us the UK’s leading utilities consultant1 and it means that our clients can use any or all of our electricity, gas and water services to create their own perfect-fit solution, giving them one less thing to worry about. Here we explain the four elements we’ve built our services around. We believe they are the four key elements of an effective and sustainable utilities strategy.

1. BUY IT WELL As buying and using utilities becomes more complex, devising a procurement strategy that suits your budget, sustainability goals and risk-appetite can be tricky. Having real-time oversight of the market is helpful, but the true value comes from combining that oversight with access to utilities experts who can help you interpret market data and guide buying decisions. We scan more of the marketplace than any other TPI, to make sure businesses secure the contract terms they want at the best possible price. We also have the expertise to help 1.

Inspired Energy rated number one UK TPI in I&C Index in the independent Cornwall Insight report 2018, https://www.cornwallinsight.com/

them shape a buying strategy around their unique needs and can step in to remove the burden of administration wherever needed through our billing, metering and invoice validation services.

2. USE IT BETTER Efficiency can make a big difference to the bottom line, but only if action is meaningful and measurable. Many businesses identify efficiency measures but fail to implement them. Some struggle to get executive buy-in due to lack of data. Others take action but have no easy way to monitor success. These obstacles can be overcome with the right support and technology. Our intuitive software provides user-friendly tools to help raise awareness, monitor ROI and drive better utilities use across every level of a business. This unique technology gives businesses access to the insight they need to cut costs and carbon.

3. MAKE YOUR OWN In an increasingly decentralised system, on-site generation can protect businesses from power outages and the rising costs associated with using the grid. Unfortunately, getting projects off the ground can be difficult. From

THE ONLY PUBLIC SECTOR ENERGY JOURNAL

feasibility studies and securing funding, through to build and management, Inspired Energy works closely with businesses to help them get maximum benefit from making their own energy.

4. DO IT RIGHT As our government maps out the route to net zero through new policy and regulation, businesses will need to give extra attention to compliance. Failing to do so could mean costly penalties or reputational damage. With compliance and sustainability credentials becoming so crucial to commercial success, businesses can benefit from help to manage regulatory risk. At Inspired Energy, we deliver peace of mind through accurate and timely reporting for efficiency and carbon reporting schemes like ESOS and SECR. The data gathered can also help to secure investment in efficiency upgrades to reduce consumption, cost and emissions.

BUILT FOR ALL SECTORS Our business has been built for clients in all sectors and for businesses just like yours. With our own adaptable software and carefully selected teams of utilities experts covering everything from procurement and cost management through to innovative R&D, we’ve got the scale and experience to support you, whatever the future holds. Discover what we could do for your business at inspiredenergy.co.uk/builtforyou

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ENERGY MANAGEMENT

WHAT DOES 2020 HAVE IN STORE FOR ENERGY MANAGEMENT? David Hall, Vice President Power Systems, UK & Ireland at Schneider Electric

n the face of increasing competition, businesses want and need to become more efficient, especially where they can also reduce their climate impact. The recently introduced 2050 carbon neutral goals will further contribute to business thinking on this issue, closely aligning business success with sustainability. Renewables will be at the heart of forwardthinking businesses in 2020. Once considered an ‘alternative’ power source, now more than 150 global companies (including Schneider Electric) have committed to sourcing 100% of their electricity from renewable sources. Making the most of such new opportunities requires digital transformation and a rethink of the energy grid, from generation to distribution and the management of excess power. Here are the four top technologies which will fuel the energy management revolution and prove essential to making net-zero business a closer reality in 2020: 1. Energy management goes micro. Microgrids should be considered as an important decentralising technology that companies should adopt, as they bring together a combination of clean technologies to help organisations operate autonomously from the traditional electrical grid. With their implementation they will be able to insulate their facilities from the risk and changing cost components of an ever-evolving energy market. 2. Decarbonising energy storage. Batteries play a key role in enabling companies to embrace clean, low-cost, renewable energy at a higher level. By mitigating the intermittency issues that renewable power sources have traditionally faced, storage will help remove a significant barrier to greater adoption of wind and solar resources. As the price for batteries and other storage solutions drops, corporate buyers can maximise their energy investments, while contributing to the clean energy transition. Additionally, with microgrid opportunities on the rise, energy storage may become commonplace for companies. 3. Balancing baseload with new fuel cell technologies. Fuel cells electrochemically combine a fuel (ranging from pure hydrogen to natural gas or biogas) with oxygen and convert the resulting

chemical energy into electricity without any form of combustion. Because they require a constant, steady source of fuel to produce electricity, fuel cells are able to provide a continuous baseload source of clean electric power. This will provide facilities with a need for a reliable minimum supply of energy to incorporate renewables into their energy mix without compromising the safety and stability of their baseload. Ultimately, they should become a vital technology to carefully consider within the active energy management landscape. 4. Bring transactions into the 21st century with blockchain. Currently, the only means to track renewable energy generation is through EACs, and information sharing among market participants is a manual process. This is creating an obstacle to adoption, as moving to renewables is being seen as a cost centre for businesses, rather than a value driver. But with blockchain, EACs can be created instantaneously as renewable energy is put onto the grid — no matter the size or physical location of the producer. With the increased autonomy that blockchain introduces,

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corporate energy buyers may find it easier to accomplish these goals – and at a lower cost and time commitment. 5. The rise of EV adoption. Electric vehicles will soon form an essential part of power generation, transmission, distribution and consumption. The potential for electric vehicles to act as flexible energy storage must be embraced to make ambitious environmental targets a reality. By doing so, we can create an integrated renewable energy ecosystem – charging a growing fleet of electric vehicles, while sending some of the energy stored in these electric vehicle batteries back to the grid at peak demand times. Taken together these measures will help to balance demand and supply, and dramatically reduce costs and emissions. The secret to combining the benefits of all these technologies lies in an approach of active energy management. As we move into 2020, by developing an efficiency and sustainable energy strategy, businesses can be sure that whatever the future brings, they will be ahead of the curve. https://www.se.com/uk/en/

CHP

CUTTING COSTS WITHOUT CUTTING CARE

ospitals by their nature are high energy consumers, having a large electricity and heat demand 365 days a year. This makes them ideal candidates for energy savings, with every cost under scrutiny in the healthcare sector and increasing pressure to improve energy efficiency. Installing a natural gas-fuelled combined heat and power (CHP) plant in a hospital is an ideal way of achieving this improved efficiency, whilst simultaneously reducing the sites carbon emissions. As the UK Government aspires to become carbon-neutral in the not too distant future, green gases such as hydrogen are likely to be transitioned into the gas grid. CHP gas engine installations are ‘hydrogen ready’ with a number of engines already operating using the zero-carbon fuel. Clarke Energy is multi-national specialist in installing, engineering and maintaining high efficiency combined heat and power (CHP) plants. The company has installed over 80MW of power generation into UK hospitals across 40 NHS sites. When a hospital purchases both electricity from the national grid and in parallel gas or another fuel for heating this can lead to higher costs. Using a gas engine-based CHP plant facilitates the purchase of a single fuel source to achieve both the production of electricity and heat. If a hospital has need for cooling, trigeneration (or combined cooling, heat and power CCHP) technology can produce a supplementary source of cold water for refrigeration or air conditioning. Energy usage in hospitals takes a number of forms including: • Electricity – required to power the lighting and equipment of the facility • Hot water – For cleaning & general use • Steam – For sterilisation, cleaning • Cooling – For refrigeration, freezing and air conditioning systems. Each of these energy types can be produced at high efficiency with the assistance of a CHP facility. Combined heat and power installations have become increasingly popular in hospitals, with the key benefits being: • Energy savings that can be diverted to fund the treatment of patients. • Financial benefits compared to the separate purchase of

electricity and heating fuel. • Environmental benefits related to reduced carbon emissions as natural gas is a clean burning low carbon fuel • Flexible technology that can be used to provide electricity, heating and cooling if required. Clarke Energy’s CHP solutions are proven in the UK market having been supplying Jenbacher engines plants to the healthcare sector since 1997. The original units installed at Freemans Hospital in the North East of England have now been replaced by the latest, most efficient engine models. Since 1997 a total of 50 engines have been installed across 40 NHS sites, providing 80MW of power generation.

PROJECT EXAMPLES Clarke Energy supplied a highefficiency 1.4MW trigeneration plant to Europe’s oldest hospital located at Barts Health NHS Trust. The natural gas energy centre was built to increase the hospital’s energy security and efficiency while reducing its fuel costs and curbing its environmental impacts. Clarke Energy also supplied a 250-kilowatt absorption chiller, which delivers needed cooling water for the hospital and balance of plant equipment. The award-winning ‘Pink Power’ project was also unique in that the normally green Jenbacher engine was painted bright pink in order to support breast cancer research. The official start of the engines commenced on NHS Sustainability Day in 2016. This nationally recognised day for climate change action aims to engage healthcare staff to improve their environmental awareness. With Clarke Energy’s help Guy’s and St Thomas’ NHS Foundation Trust became one of the first healthcare trusts in London to produce its own electricity and heat through CHP – saving the equivalent carbon dioxide of around 17,000 passengers flying to

New York and enough energy to power the city of Newcastle-upon-Tyne for a week. Overall the Jenbacher engines reduced CO2 emissions produced by the Trust by almost 11,300 tonnes per year. It also saved the trust more than £1.5 million in energy costs annually – one of the largest savings from a CHP for an NHS trust.

REASONS TO USE CHP: • • • •

CHP achieves savings of up to 40% CHP can achieve over 90% energy efficiency CHP reduces carbon emissions by up to 30% CHP can qualify for enhanced capital allowances and can achieve 2-year capital repayment

THE FUTURE With the UK Government setting the ambitious target of becoming net zero carbon by 2050, there are many questions about where gas-engine CHP fits into the future of the UK power network. Two ways to decarbonise the gas grid that have been suggested are changing the composition of gas in the network to hydrogen and biomethane, referred to as ‘green gas’. Clarke Energy are already looking to the future by adding new products and services to their offering to include these green gases. Hydrogen is a zero-carbon emission energy source and can be used as a fuel in gas engines to generate electricity, heat and cooling. INNIO Jenbacher gas engines are now hydrogen ready with a number of engines operating on currently up to 70% hydrogen. INNIO also plans to demonstrate by 2021 that their engines can run on up to 100% hydrogen and ethanol. https://www.clarke-energy.com/uk/

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

ENERGY STORAGE

UK ENERGY STORAGE: MAKING THE PLANNING PROCESS EASIER The UK’s energy storage industry is making huge strides – and the regulatory regime is having to catch up fast. This article explores the latest proposals from the UK Government as to how energy storage schemes can be consented in the planning process. Authors: Kiran Arora, Simon Buchler, James Parker at BCLP for major UK infrastructure projects so that they would be consented to without undue delay, making it more attractive for international infrastructure investors.

Kiran Arora, Simon Buchler, James Parker

he planning system in England and Wales is playing catch-up with the pace of change for energy storage projects. Due to this, the UK Government consulted earlier in 2019 on how schemes would be dealt with through the planning regime. The Government’s response was issued on 15 October 2019, and this is now being consulted on as a revised set of proposals. This latest consultation runs until 10 December 2019.

ORIGINAL CONSULTATION A summary of the background to the Government’s original consultation can be found in our blog from January 2019 ‘BEIS – planning for better storage solutions’. In short, there were two main discussion points: 1. Whether to retain the 50 megawatt (MW) Nationally Significant Infrastructure Project (NSIP) capacity threshold that applies to standalone storage facilities; and 2. Whether to amend the Planning Act 2008 to establish a new capacity threshold for composite projects, including storage and another form of generation, such that a composite project in England would only fall into the NSIP regime where either its capacity, excluding any electricity storage, is more than 50MW; or the capacity of any electricity storage is more than 50MW. The NSIP regime, also known as the Development Consent Order (DCO) regime was created in 2008 to give greater certainty

A TALE OF TWO REGIMES… The main alternative to the NSIP / DCO regime, is the conventional regime of planning permissions (pursuant to the 1990 Town and Country Planning Act), which is designed to cover developments across the spectrum, from the smallest right up to those that just fall short of being ‘nationally significant’. Applications for planning permissions are made to your local Council, as the ‘local planning authority’ (LPA), and are often determined by the LPA. If refused, they can be appealed to a Government inspector for redetermination. However, the NSIP / DCO regime, has some advantages: (1) your scheme “needs case” can be proved through the ‘National Policy Statements’ (NPS), insofar as there is a valid applicable NPS (noting that the energy NPSs were produced in 2011, and didn’t envisage storage); (2) you can include powers of compulsory acquisition in your DCO; (3) you can also include other consents in your DCO, including changing other legislation; and (4) the decision maker is not the local planning authority but the Secretary of State (in the case of storage, at BEIS), hence for highly controversial schemes, it can be preferable to avoid a local decision making process where local politics can interfere with proper decision making. On the flip side, the DCO process can take considerably longer than securing planning permission (albeit if your scheme is heading to an appeal, then there may not be much in it) and the DCO process also requires statutory consultation before an application can

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be made. These factors often mean higher costs in the consenting phase.

STORAGE – WHAT DID THE CONSULTATION SAY? After consultation, the Government has listened and revised its proposals: 1. Carve out electricity storage, except pumped hydro, from the NSIP regime in England and Wales, meaning that the primary consenting route in England will be under the Town and Country Planning Act 1990 (TCPA). Section 35 of the Planning Act 2008 will continue to apply in England, allowing the Secretary of State to direct projects into the NSIP regime, where she considers it appropriate. In Wales, planning decisions for electricity storage (except pumped hydro) of any size will generally fall to be consented by the relevant Local Planning Authority under the TCPA regime, whereas currently this is only the case for electricity storage (except pumped hydro) below 350MW. 2. Retain the 50MW NSIP threshold in the case of pumped hydro storage. Due to the larger planning impacts of pumped hydro projects and the fact that they often require other consents (e.g. authorisation for the compulsory acquisition of land) which can be provided through a Development Consent Order (DCO), it may be more efficient for it to go through the NSIP regime than seeking planning permission locally. Therefore, we believe that the NSIP regime remains the most appropriate consenting process for this technology. There are a couple of other interesting points addressing ‘permitted development rights’ where planning permission is ‘deemed’ to be granted in certain circumstances (e.g. extending a premises, where storage is an ancillary function), and also circumstances where works are not ‘development’ (in the legal sense(!) – see below) and hence don’t actually need planning permission at all. On the latter point, the example the Government offers, is where storage is installed within an existing premises as a secondary function to the primary

ENERGY STORAGE use, and there is no external change to the premises – then this ‘would be unlikely’ to be a material change of use and therefore wouldn’t be ‘development’, hence meaning there is no need for a planning permission. This whole area of law is something that developers of all kinds have been grappling with for decades, and it’s fair to say that developers and LPAs (who enforce planning breaches) can often have viewpoints which start at opposite ends of the telescope. But, with the right advice the shades of grey are totally surmountable.

WHAT ABOUT THE ENVIRONMENT? Allied to this is the issue of Environmental Impact Assessment (EIA), whereby if your proposals are EIA Development (i.e. they are likely to have significant effects on the environment), then any potential permitted development rights are automatically lost. The consultation paper fails entirely to mention the linked

issue of protected habitats, and the UK Habitats Regulations requirements in relation to special protected sites, which is an issue our developer clients often have to grapple with. Additionally, you may be wondering what Section 35 is all about. Essentially it is an ability to apply to ask for your project to be treated as an NSIP under the DCO regime. Hence if you think that regime is better for you, in light of the pros and cons listed above, then you can make the case to head down that route.

WHAT IS STORAGE; AND WHY DOES THAT MATTER? Historically, there is more than one school of thought on how to classify electricity storage, however there is now some measure of consistency being driven by the Government that battery storage should be treated as a form of generation. In a recent DCO decision in respect to the Drax repowering project, the inclusion of battery storage lead the Government

inspectors to conclude that as a matter of law they were not NSIPs. But, the Secretary of State’s decision nipped that in the bud, and was very clear that “the Government’s view [is] that Battery Storage Facilities constitute a form of ‘generating station’” (para 5.2) and hence can qualify as NSIPs for DCO consent. This distinction might just be important if a scheme promoter wanted to avail itself of the DCO regime process.

WHERE NEXT? It is encouraging that battery storage is receiving informed attention and support from the Government. This is going to be critical if the nascent industry is to take off and fulfil its potential as a key part of a flexible energy system. Additionally, the overall conclusion of the revised consultation is good news, and is the result of much hard work by the industry to try to bring forward storage which, amongst other things, can help the UK reduce emissions to net zero by 2050. Hopefully, the next stage of consultation will be positive and the measures will come into force. This will enable storage promoters to have greater clarity about the consents they need, and is the other factor required to successfully develop a battery storage project, whether as a stand-alone asset or in conjunction with other activities. www.bclplaw.com

ENERGY STORAGE: DEVELOPING A RELIABLE FUTURE FOR CLEAN ENERGY Fergus Charlton legal director at UK law firm TLT

n the past two decades, clean energy has accelerated to producing 40% of the nation’s electricity demand in 2019. With the various sources of clean energy technologies each making real progress to becoming economically selfsufficient – and many of the technologies having attained ‘tried and tested’ status – it is clear that they represent the very promising future of the energy industry. The changes in energy supply are matched by changes in energy demand, with the emerging electric vehicle market being one prominent example. To generate the best conditions for growth, energy market policymakers need to keep working to remove the existing obstacles to the expansion of clean energy. Policy must focus on ‘keeping the lights on’ and managing out ‘energy poverty’. Clean energy typically experiences fluxes in production according to the nature of the energy source. Balancing out these fluxes over time requires both standby generation and, critically, improvements in energy storage to complement clean energy production. An issue that has impeded the

development of energy storage is its statutory definition in both planning and supply terms. In the UK, energy storage is classified as a generation station. Generation stations are rather nebulously defined in the Electricity Act 1989 with government departmental guidance giving more colour to that definition. Treating storage as generation means that in the planning system, standalone storage or storage bolted onto an existing solar or wind farm are potentially exposed to the rigours of the Development Consent Order (DCO) requirements of the 2008 Planning Act. Where the energy storage facility in its own right, or the combined clean energy plant with the extended energy storage, result in an output capacity over 50MW it becomes a Nationally Significant Infrastructure Project (NSIP). NSIPs can only be lawfully operated under a DCO. The DCO application process has certain benefits, but it is unfamiliar to many clean energy developers and it is costly when compared to a determination under the Town and Country Planning Act 1990. Developers’ perceptions of the difficulties of the DCO regime have certainly hampered advancement in this crucial segment of the energy market. Many schemes were artificially self-constrained to below the 50MW target, several being

permitted at 49.999MW just to avoid the need for a DCO and allow a planning determination under the Town and Country Planning Act. By setting this trigger threshold, the planning system was dictating the size of new schemes to the detriment of economies of scale and grid connection capacity constraints and availability. The Department of Business, Energy & Industrial Strategy (BEIS) consulted earlier in the year on energy storage. BEIS had been of the view that the DCO process was preferred by developers. It must therefore have been quite a surprise when the responses to the consultation, including those submitted by TLT, set out the numerous examples of schemes designed on a ‘DCO avoidance’ basis. To its credit, BEIS took up the challenge and there has been a paradigm shift in its understanding of the consequences of this threshold on new energy storage projects. Now, at the end of the year, BEIS is consulting on carving out energy generation from the NSIP regime, meaning that the primary consenting route for energy storage in England will be under the Town and Country Planning Act. Only pumped hydro schemes as an energy storage project will remain in the NSIP categories. The consultation, which closes on 10 December, was published together with the draft statutory instruments required to bring the changes into effect: a sure indication of the direction of travel. It will take something really significant to derail the changes now. Let us now hope that they survive the general election. www.tltsolicitors.com

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

ENERGY SUPPLY

ASSURANCE FRAMEWORKS AND THE ENERGY SUPPLY CHAIN Jake Holloway, Chief Product Officer at Crossword Cybersecurity PLC, explains why Supplier Assurance Frameworks are becoming more-and-more essential.

he nature of the energy industry means that it inherently has complex supply chains. Each organisation in the chain is a potential weakness that can impact the provision of energy to critical infrastructure, businesses and consumers. Those points of weakness, as we have seen in recent years, can lead to outages because, ultimately, our energy supplies are only as strong as the weakest link in the chain. Only in August this year we saw outages across the South East of England, caused by a ‘seemingly’ impossible combination of circumstances. But equally, we hear examples across the globe of nation states and hacking groups exploiting cyber security weaknesses in the supply chain to take supplies offline, such as those affecting the Ukraine in 2015 and 2016.

A NEW ERA OF SUPPLY CHAIN MANAGEMENT In order to manage risks and build healthy and resilient energy supply chains, the right supplier assurance processes need to be in place. This could be seen as a challenge for procurement teams and the supplier onboarding process, but it reaches much further, with risk assessments needed across areas as diverse as certification, equipment handling, quality control, the Modern Slavery Act, Health & Safety, GDPR and cyber security to name but a few. Each of these areas impacts departments in different ways, and indeed may require specialist expertise to assess the risks. Cyber security is a great example, where a weakness such as an unpatched VoIP phone or IoT sensor, may be exploited in one supplier to reach other parts of the supply chain. Normally, supplier assurance and procurement teams would stay well away from these technical and complex areas. For instance, with cyber security, where supplier due diligence requires a cyber security assessment, it’s happily handed over to specialists – whether

internal or external. Any reports, risk acceptance or remediation activities are left with the specialists while supplier assurance teams focus on the core of financial risk, insurance cover, standards, supply continuity and so on.

BUILDING A SUPPLIER ASSURANCE FRAMEWORK Organisations need a different approach to reduce risks associated with suppliers, vendors and other third parties. One that combines the supplier assurance and procurement team’s approach based on good practise, controls, evidence of governance and commitments to improvement, with the deeper technical understanding of other teams. Supplier assurance and procurement teams have a far greater role to play in this than they may imagine through the implementation of a Supplier Assurance Framework. A good framework, starts with the need for supplier assurance and other departments to gain an improved understanding about each other’s domains, objectives and responsibilities. A starting point is for them to jointly develop Supplier Impact criteria that systematically assess how much inherent risk every supplier or third party may have in that departments sphere. Each supplier can then be measured against these criteria, and their supplier impact level established. A different approach for each level of impact should be agreed jointly and completely standardised across the organisation. For example, for suppliers with a Very High impact, the supplier should be expected to demonstrate a high level of internal controls. For cyber security, for example, this should take the shape of obtaining or working to achieve high standards such as ISO27001, IASME Governance or NIST. This means it’s the supplier’s responsibility to show a serious level of control rather than the hard-pressed cyber security team’s responsibility to dive into hundreds of hours of audit work. It also has the benefit of being easy

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for a non-cyber specialist to determine if the standard is present or not. Where a technical assessment is needed, such as a penetration test or at least a “pen test” report from a credible third party, then the supplier assurance team can be responsible for managing that this takes place – handing over the responsibility to the cyber teams or external testers where needed. This ‘management of risk’ role cannot be handed over though, as tempting as it is when the talk gets incomprehensibly technical. The approach at each level of supplier impact should also contain the ongoing levels of compliance required in order to maintain good risk management. Again, the supplier assurance team can timetable these ongoing reviews and focus on the governance of thirdparty risk – whether cyber, materials, continuity, financial or regulatory.

SHARED SUPPLIER RISK INFORMATION What really helps is that the different teams involved in supplier risk start to use shared information systems to record and visualise supplier risks. We have seen users creating really impressive supplier scorecards showing a combined view of financial, cyber, GDPR, slavery and other risks all on one simple chart for each supplier. This gives them a shared understanding of the totality of risk from each supplier and helps specialist teams, such as IT, and the supplier assurance team understand how their worlds fit together. At a time when the energy industry is facing threats arguably greater than ever before, building a supplier assurance framework helps companies take control of their third-party risks, by allowing them to control, manage and measure their exposure. https://www.rizikon.io/

ENERGY SUPPLY

WIDER ACCESS: DEMOCRATISING GRID BALANCING

Alex Howard, Head of Strategy, Origami

s Britain’s Electricity System Operator (ESO), National Grid’s primary purpose is to balance supply and demand in real time, so that our homes and businesses have the power we need, whenever we need it. To do this, the ESO procures services from electricity generators and users through various markets and mechanisms. Its approach has helped to maintain the quality and security of electrical supply across Britain’s transmission system for many years. The Balancing Mechanism (BM) is one of the ways that National Grid balances electricity across Great Britain close-to-real-time. The BM also enables National Grid to maintain an even flow of power across the network throughout the length and breadth of Great Britain. In other words, the BM has a locational dimension too.

WHAT’S CHANGING? During 2018, National Grid published a roadmap to widen access to the BM so that it is “open to all technologies and providers, with no significant barriers to entry”. National Grid is rolling out the Wider Access (WA) programme over the coming months so that it becomes available to participants operating smaller, distributed assets. Historically, the BM has been a means of National Grid calling on major power generators, such as large thermal power stations and pumped hydro facilities, to change their generation schedules to produce more – or less – energy. The BM’s current contractual and operational mechanisms were designed for these legacy energy systems. With a commitment to eliminate coal from its energy mix by 2025, Great Britain has embarked on a programme to decommission many of its thermal generators. National Grid recognises the need to compensate for the anticipated fall in flexible, dispatchable generation on the system alongside the growth in renewables, which will require more flexibility. As today’s energy grid increasingly moves towards smaller, distributed generators and suppliers, National Grid believes opening up the BM so that smaller distributed assets can more easily

participate, will enable it to continue to meet its obligations, reliably and efficiently. A further motive for enabling Wider Access to the BM are the ESO’s ambitions to decarbonise the electricity system. National Grid has a vision to balance the system in a zero-carbon way by 2030, which it is delivering through its System Operator Innovation Strategy. Implementing the strategy requires moving towards the use of smaller, low-carbon assets, including energy storage technologies. Ultimately, National Grid wants to see Wider Access deliver more flexibility, lower carbon, increased competition and reduced transmission costs for consumers.

OPPORTUNITIES FOR SMALLER ASSETS Before Wider Access, participating in the BM required a supply or generation licence, or a partner with such a license. The overheads involved in obtaining a supply licence mean that gaining direct access to the BM has not been costeffective for owners and operators of smaller assets. Wider Access offers streamlined access to the BM for owners and operators of smaller assets, with no supply licence required. While there is a qualification process for those applying for direct access to the BM, National Grid’s aim is to make access as straightforward as possible. In the past, participants used to have to physically install dedicated hardware to access the BM. For Wider Access, National Grid is investing in its IT systems so that access is through software interfaces. The practical barriers to accessing the BM are lower with Wider Access, however there is still an awareness and education issue to be addressed. Established players in the market will have an advantage over new entrants in understanding what National Grid is looking for, what’s useful at different times and therefore what bids are more likely to be accepted. National Grid recognises that it must change its systems and practices so that they don’t favour an approach that instructs a small number of large assets rather than a large number of small assets. National Grid now operates a desk within its control room that recognises smaller distributed assets

and ensures that they consider them fairly against legacy assets and established market participants.

INCREMENTAL REVENUE National Grid uses a participant’s trading in wholesale markets as a starting point to instruct them up or down in the BM, which means that being active in the BM is a complementary way to stack revenue and earn incremental revenue from an asset. A participant receives revenue from trading in the wholesale market and even if National Grid then issues an instruction to turn off the plant – because that’s what they need for balancing purposes – the participant is still paid for the wholesale trade. Wider Access helps enable access to a new market called TERRE – the Trans European Replacement Reserves Exchange. TERRE brings together nine European countries, including Great Britain, to trade flexibility within a cross border balancing market. Qualifying for BM Wider Access will also give participants access to TERRE, helping to support electricity network operation across Europe. Latest indications are that TERRE will go live during the summer of 2020, after BM Wider Access has been introduced.

DISRUPTION AHEAD The advent of Wider Access – even before it has launched – has stimulated an influx of flexibility into the BM through licensed suppliers. It looks like it may be the catalyst that disrupts the balancing markets as prices are becoming more competitive and licensed suppliers are rethinking their value propositions to customers. As new capacity gains direct access to the BM, we expect to see strategy changes for those operating in the BM. Some may have very different ideas about how to maximise value, for example what capacity to offer, in which location and at what price. These changes may force other players to adapt – including the established participants. Wider Access is a significant change for the BM, and we expect some disruption to the established rules of thumb. It may take a couple of years to establish the ‘new normal’. With Wider Access, National Grid is launching an initiative that aligns with the drivers of a decentralised and decarbonised energy system, while optimised trading of a large number of smaller assets will undoubtedly require access to the third important energy driver – digital technology. Managing the complexity associated with trading a portfolio of assets across multiple markets – and optimising value from those markets – will require the use of automated decision support and optimisation tools. www.origamienergy.com

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

ENERGY SUPPLY

LOW REGRET INVESTMENTS IN DSO ENABLERS Dr Graham Ault, co-founder and Executive Director, Smarter Grid Solutions

he evolution of the Distribution Network Operators (DNOs) into organisations that are better aligned to the low carbon transition of the electricity system is viewed as an essential shift in the electricity sector. The new functions, capabilities, business models and regulatory arrangements for the nascent Distribution System Operators (DSOs) create challenges and opportunities for the current DNOs, their customers and other network users. The Energy Networks Association (ENA) defines the DSO as follows:

A Distribution System Operator (DSO) securely operates and develops an active distribution system comprising networks, demand, generation and other flexible DER. As a neutral facilitator of an open and accessible market, it will enable competitive access to markets and the optimal use of DER on distribution networks to deliver security, sustainability and affordability in the support of whole system optimisation. A DSO enables Customers to be both producers and consumers; enabling Customer access to networks and accessible markets, Customer choice and great Customer service. This definition captures or implies the context for the DSO transition including the decentralisation of electricity production, general sustainability, commercial appetite and opportunity, greater focus on unbiased public service from monopoly network companies and customer focus. The scope and scale of the transition to DSO is broad and ambitious.

THE DSO TRANSITION IS AN ESSENTIAL PART OF THE ENERGY TRANSITION FIGHT AGAINST CLIMATE CHANGE Fulfilling this vision of the DSO and delivering the low carbon transition requires the evolution of existing DNO functions, roles and responsibilities and the development of new functions. The ENA, through its Open Networks project, identified these new or extended functions as follows: 1. System Coordination: Whole system coordination for efficient planning and operation 2. Network Operation: Safe and secure operation of networks 3. Investment Planning: Efficient design and development of the system 4. Connections and Connection Rights: Providing fair and cost-effective options that meet Customer requirements and system needs 5. System Defence and Restoration: Ensuring coordinated emergency response and system resilience 6. Services/Market Facilitation: Facilitation of markets for flexibility 7. Service Optimisation: Ensuring system needs can be met efficiently 8. Charging: Ensuring fair recovery of network and operational costs. These functions recognise the expanded and more complex future DSO role. This encompasses operating the power distribution systems with a greater volume and diversity of connected energy technologies at customer sites (e.g. rooftop solar panels, batteries, electric vehicles and heat pumps) as well as larger distribution connected merchant wind and solar. The wider system changes (e.g. large scale wind and solar replacing fossil

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

fuelled power generation) require the whole energy system to be operated more flexibly with greater use of smart grid / digital technologies and the flexibility that customers and distributed energy resources (DER) can provide. With the uncertainties in climate, political, regulatory, energy system, technology, economic and other aspects of the future system, DNOs are expected to invest in their public electricity supply networks and related systems to prepare for their new DSO existence without knowing exactly what will be required and how such investments will be judged and remunerated in future.

INVESTING IN NETWORKS IS RISKY BUT THE LOSS OF VALUE FROM INSUFFICIENT DSO ENABLERS IS TANGIBLE Investing now to prepare for the ongoing transition into DSOs has its risks. Investing in some DSO ‘enablers’ (i.e. systems, processes, capabilities) is essential to promote change in the distribution systems and the uses of those system by customers. But which DSO enablers should be the priorities? Over-investment now might result in stranded assets but underinvestment might leave the legitimate needs of customers and network users unmet. The risks associated with long life network investments has long been a challenge for DNOs and network regulators. The greater urgency for climate change response and meeting customer needs highlights the reality of the downside risks of not enough investment in generally agreed enablers. The risk reducing aims of ‘least regrets’ (a bold claim), no regrets (if only that were possible) or low regrets (a realistic goal) to propel the DSO transition is receiving much attention. In game theory, John von Neuman (of Dr Strangelove fame), with Morgenstern focus on the maximisation of expected utility/value as the best focus for decision making with uncertainty. The von Neuman ‘minimax criteria’

ENERGY SUPPLY

takes a more risk averse approach in seeking to minimise the maximum regret of any decision. These ideas seem highly relevant to low/least/ no regret DSO enabling investments such that maximising customer value can be balanced with minimising overall network investment costs. These, with regulatory treatment of the investments, are the focus of the current DSO enabling investment debate.

WHAT ENABLERS SHOULD DSOS INVEST IN NOW AND WHAT MIGHT NETWORK USERS GAIN IN THE NEAR-TERM? The GB energy regulator, Ofgem, has been developing a view of the priority DSO enablers to encourage the DNOs continue pushing current business change and network investments forward in the remainder of the current RIIO-ED1 price control period while setting the parameters for the coming RIIO-ED2 price control from 2023. It could be argued that aligning with the regulator’s view of essential DSO enabling investments might be a good strategy for low regret investment. A brief assessment of Ofgem five priority DSO enablers and how they help network users is helpful: •

Forecasting and planning for future network needs signals to DSOs and their customers where new network capacity is required and how customers and third parties might be able to plan more effectively or deliver new network services to DSOs. Network users can prepare for and play a full role in network development with better forecasting and planning information provided by DSOs.

•

Network monitoring and visibility technologies are required to provide the data to plan and operate the network more flexibly, efficiently and smartly. Network customers can both provide monitoring data and also gain from greater visibility in planning their behind-the-meter or merchant network activities.

•

Flexibility trading enables providers and users of distributed energy flexibility to operate the distribution

network more efficiently while creating customer-side value and optionality. Flexibility trading addresses the greater interest in commercial exchange of energy and network services between the DSO and network users and across multiple customers and should be seen as a priority. •

•

Flexibility dispatch and control allows a greater diversity of customer activities in and across the distribution network. This enables better coordinated control of all customer activities and greater utilising of the network assets leading to more opportunity and lower overall costs. DNOs have already proven the value of Active Network Management as a means of coordinated control over the networks and connected customers. Further investment enables the connection of new energy technologies, new customer business models, coordinated system operation, monitoring of flexibility services delivery and implementation of remedial actions to ensure supply security and whole system performance. Data exchange is an essential area for efficient, secure network operation and to serve customers through open access networks, market places and bi-directional energy

and network services. Data exchange, handling, cleansing, management, storage and processing (all with appropriate security and confidentiality) requires investment by DSOs and their stakeholders but has the potential to unlock many new value streams and business models. Our work with DNOs and network users (e.g. energy asset operators, commercial & industrial customers, municipal authorities) on a diversity of use case from flexible connections, flexibility services, energy-as-a-service, Virtual Power Plants, microgrids and much more, shows a high level of interest and growing investments in low carbon, decentralised energy that can play a role and take advantage of the transition to DSO. For these investments to reach their full potential and to deliver the smarter, more flexible, more efficient energy system requires the DSO enablers to be rolled out in a timely fashion. The focus on priority enablers by Ofgem point towards the essential DSO enabling platforms to underpin better customer outcomes. A window of opportunity is opening onto the future distribution system and, with wise investment, network users will be enabled and empowered to pursue their own energy, community and commercial ambitions as well as play a role in the wider system. www.smartergridsolutions.com

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

BOILERS & BURNERS

ON THE ROAD TO BOILERHOUSE EFFICIENCY Rising energy costs have created an atmosphere of uncertainty for many UK businesses. Darren Silverthorn, National Controls and Metering Specialist at Spirax Sarco, explains how correctly identifying and accounting for potential energy losses can help a business save money on their fuel bills: 28

n the UK manufacturing industry, energy costs account for a significant amount of a business’s overheads. This is a considerable expenditure and one that limits their growth potential. It’s easy to understand how a business can spend so much on energy costs when, in my experience, our engineers have routinely identified that boilerhouse managers tend to believe that they are operating at an efficiency level 15% higher than they actually are. This is likely due to them not having complete visibility of their boilerhouse components.

CALLING TIME ON TRADITION Boiler operators can find themselves tasked with identifying the efficiency of the boilerhouse. However, it is frequently the case that they will be making use of the burner efficiency to indicate the overall efficiency of the boilerhouse. What they may be unaware of is that this method does not highlight all of the potential energy losses that can occur due to factors such as dirty heat transfer surfaces, carryover, radiation losses

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and excessive boiler blowdown rates. By making use of burner efficiency for overall boilerhouse efficiency, boiler operators may be overestimating the performance of the system. They would gain a better understanding of their boilerhouse by metering all of the energy entering the boiler – both fuel and feedwater and compare this with the useful energy exiting the boiler in the steam. This type of monitoring was once only possible by investing heavily in Building Management Systems (BMS) or Supervisory Control and Data Acquisition (SCADA) software systems. Monitoring in this way was a costly means of measuring energy use and could be prohibitive for smaller businesses. The upfront investment in such systems was not a cost-effective means of measurement as they only log non-compliant operations as opposed to providing the ‘why’ that exists behind that data. This is critical for those who operate the boiler as without it they could find themselves failing to observe where energy costs could be reduced and efficiency improved.

BOILERS & BURNERS

As has already been identified, boilerhouse operators tend to overestimate the performance of their energy systems. As such, it could transpire that energy losses are greater than first anticipated, resulting in increased fuel costs to account for creeping losses via the flue, radiation, distribution, flash, blowdown or condensate.

THE PATH TO SUCCESS While management teams may be accustomed to some level of distribution loss, the true numbers can only be discerned with a monitoring system that provides a complete overview of the system that they may have otherwise lacked. Spirax Sarco’s B850 boilerhouse energy monitor for instance, offers a costeffective means of measuring the overall boilerhouse efficiency. The monitor accurately calculates the efficiency of the boilerhouse based on measured

inputs from the fuel, feedwater, steam output, condensate return and blowdown. Cost-conscious boiler operators can utilise this data to make improvements in the efficiency of their steam system – yielding energy savings and reductions in the financial expenditure of the business. With the right data in-hand, operators and management teams can systematically improve the steam system to limit the energy losses at multiple points. Take for instance water treatment and boiler water conditioning. This has significant potential for improving overall energy efficiency and lowering the total cost of ownership (TCO) of plant. Treatment can help to prevent the build-up of alkaline deposits on heat transfer surfaces, without which deposit layers could act as a barrier against effective heat transfer – reducing the energy efficiency of the boiler dramatically. For example, a deposit layer just one millimetre thick could

lower system efficiency by around 10%. There are several other areas around the full boilerhouse system where losses can be found such as the economisers, fluegas shut-off dampers and blowdown heat recovery. Equally, where there are losses, there is scope for efficiency savings. To achieve this boilerhouse operators can help themselves and their businesses by making use of intelligent monitoring systems.

BACK IN THE GAME By cutting the costs of energy, businesses could find that they are able to save money on their fuel bills. The rigorous monitoring of the energy performance of the boilerhouse provides the foundations for cost-saving and reductions in fuel consumption. The future is uncertain enough, the finer detail of the operator’s steam system doesn’t have to be – with an energy monitoring system, losses can be quickly identified and rectified to put a stop to excess waste. To see how you can lower your energy costs and improve efficiency, download the latest guide from Spirax Sarco: ‘A roadmap to identifying the true efficiency of your boilerhouse’ www.spiraxsarco.com/global/en-GB/ promo/the-brains-of-the-boilerhouse

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

HEAT PUMPS

John M Armstrong. Head of Operations - City Energy at E.ON

have recently become fascinated by heat pumps and have been surprised by why take-up in the UK remains stubbornly low... despite global installations running at in excess of 18 million a year. In fact having recently installed a condensing boiler myself I am perhaps my own case study!

THE GREEN HEAT SPREAD Logically there is a tipping point whereby the difference between the cost of gas and the cost of electricity becomes small enough that with a reasonably performing heat pump generating heat from electricity becomes cost effective. Using this idea I have had a go at coming up with a measure for when it becomes economically favourable to install a heat pump - you could call this measure the ‘Green Heat Spread’. The Green Heat Spread compares the cost of an electric heat pump system to a gas based system using the best available technology for each to see how running costs compare.

SO WHAT IS THE GREEN HEAT SPREAD IN THE UK? Currently in the UK gas costs on average 4.46p/kwhr and electricity 17.36p/kwhr (using BEIS data). A typical domestic air source heat pump uses about 1 unit of electricity for 3 units of heat (called the Coefficient of Performance or COP) and a Gas Boiler has an efficiency of around 80%. If you crunch these numbers you come up with a cost of 5.8p for each unit of heat for the air source heat pump vs 5.6p for heat from the gas boiler. So a slim loss overall with a Green Heat Spread of -0.2p. That basically means running a heat pump should be comparable to a gas boiler for each KWHr of heat produced. If we look to our neighbours and see what’s going on there its interesting to compare this figure to our European neighbours. Its clear from the red line below that there is a substantial variation in the incentive to heat domestic buildings using a heat pump across Europe. The highest Green Heat Spreads are in Sweden and the lowest in Germany and the United Kingdom. Therefore logically you would expect some kind of correlation between the Green Heat Spread and the prevalence of heat pump installations. The figure below shows the heat spread as compared to the number of heat pump installations (adjusted for population) and there seems to be a good

correlation (driven in particular by Sweden to the right!). But in the UK that doesn’t tell the whole story. The UK government has sought to heavily subsidise Air Source Heat Pumps through the Renewable Heat Incentive. Currently the rate per KWHr of heat generated from an Air Source Heat Pump stands at 10.6p/ KwHr. If we adjust our graph accordingly suddenly the uptake looks disproportionately less in the UK than it should be.

Photo by Gaelle Marcel on Unsplash

WHAT’S MAKING HEAT PUMP TAKE-UP SO SLUGGISH?

WHY THE LOW UPTAKE? Having personally gone through this journey myself recently there are some factors in the UK which I believe push against the rapid role out of heat pump technology. • Property Efficiency Performance - I recently presented and shared a blog about the dire state of the UK property stock. The majority of homes are ‘D’ rated or worse. Its really difficult to get a heat pump to perform well in a property that needs radiators at 80+ degrees to keep the house warm. Replacing existing radiator systems is just too costly or disruptive for most people to consider. • The cost of installation - with typical costs of £6000 to £8000 for an air source heat pump the delta to a gas boiler at around £1500 is substantial and unattractive for most even with generous government subsidy. If you take into account the cost to improve insulation and install a lower temperature radiator system - these costs become prohibitive. • Not attractive to landlords - around 38% of UK properties are rented with little incentive for landlords to install the technology. • Public Awareness - A Recent UK Government Public Attitudes tracker highlighted that only 27% of the public were aware of Air Source Heat Pumps. More concerning than this was a reduction in public awareness of any renewable heating technology from 64% in 2017 down to 52% in December 2018.

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• Gas Cookers are very common in the UK and despite there being little between the two in terms of cooking performance. The commonly used phrase to describe really doing well...’now were cooking on gas’ which originates from gas board adverts nearly 80 years ago - shows how entrenched the idea of cooking on gas flame really is! The above challenges show that new pricing models may need to be developed to encourage substantial further uptake. Selling heat as a service presents some opportunities for the provision of equipment however whether this can be stretched to include energy efficiency measures remains to be seen. (Watch out for this trial in Bristol! https://www.businessgreen. com/bg/news-analysis/3070588/uk-firstbristol-energy-trials-heat-as-a-service) The recent ban on gas boilers in new build properties presents some interesting opportunities in the new build sector however this is unlikely to make much impact in the short term on the overall situation as the existing housing stock remains stubbornly committed to the white box on the wall. We need to think radically about shifting the dial on green heating... making the case compelling to switch over encouraging consumers to take the leap beyond their current reliance of gas. https://www.eonenergy.com/

HEATING

RINNAI CPD ON CONTINUOUS FLOW HOT WATER DELIVERY ON DEMAND NOW FULLY APPROVED BY CIBSE

innai’s CPD courses on continuous flow hot water delivery units and systems have now been fully approved by the Chartered Institute of Building Service Engineers (CIBSE). Four CPDs have been approved -: • Excellence in Design of Continuous Flow Hot Water Delivery • Continuous Flow Hot Water Appreciation • The Regulatory Horizon for Hot Water Delivery • ACOP L8 “Demand for all of our training courses and programmes have risen steeply as the industry increasingly has to focus on energy, environment and finance efficiency in hot water delivery within a commercial context, “says Rinnai’s Chris Goggin. CPD courses have been designed for M&E consultants and specifiers, design and build engineers and, facilities managers. These courses had already attracted praise from CIBSE. For example, it says of the

‘CONTINUOUS FLOW WATER HEATING SYSTEM SIZING AND DESIGN’ course in an appraisal: “The course delivers what it outlines and is well constructed.” Rinnai has developed and manufactures the only complete and most comprehensive range of highly efficient ErP labelled A-rated continuous flow water heaters on the market, from the smallest domestic model to industrial units. “Rinnai understands that time means money which is why we are happy to adopt an ‘any time, any place,

anywhere’ approach to CPD delivery and training,” adds Mr Goggin. For more information visit: www.rinnaiuk.com

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

HEATING

A CLEANER FUTURE WITH LOW CARBON ELECTRIC HEATING

The Government’s new Future Homes Standard, set to be introduced by 2025, is designed to encourage the industry to move away from burning natural gas to heat our homes. The answer could lie in electric, says Shaun Hurworth from Glen Dimplex Heating & Ventilation, as he explores the the opportunity low carbon hating presents for energy managers.

n March, Chancellor Philip Hammond announced the new Future Homes Standard, set to be introduced by 2025, which will “future-proof new build homes with low carbon heating and world-leading levels of energy efficiency”. The Standard further supports the UK’s transition to a low carbon, low energy future, and is likely to mean a change in the HVAC strategies used in building design. Under the plans, the Government wants the industry to reduce dependence on burning natural gas to heat our homes, instead focusing on technologies that can tap into renewable energy sources, especially where dominant energy loads can be fulfilled in a low carbon way. The answer could lie in electric.

LOW CARBON OPPORTUNITIES It’s not just new buildings that can take advantage of the benefits that electric heating and hot water systems. Around 1.8million homes in the UK are heated by electricity and this number is set to grow in the coming years. Even aside from the decarbonisation benefits of being connected to an

increasingly renewable-driven electricity grid, housing trends are helping to boost the appeal of electric heating, which is well suited to modern, well-insulated homes and city centre apartments. This has facilitated the development of new technologies and increasingly more innovative applications of existing technologies too. Heat pumps, an electric technology which brings further opportunities for off-gas heating and hot water solutions, also offer great example of how much technology has moved on, with capital and running costs coming down as product development and economies of scale start to provide real alternatives to traditional specifications.

OUTDATED TECHNOLOGY In the refurbishment market, one of the biggest opportunities for electrical contractors lies in updating the traditional electric storage heaters in existing properties with high heat retention heaters, like the Dimplex Quantum system or the Dimplex Zeroth Energy System, a lower temperature network of heat pumps. Many electrically heated homes and buildings could be paying over the odds for their heating because of old electric storage heaters and incorrect specification. Diving futher into the figures behind this - of the 1.7million homes in

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the UK with electric storage heating, 63% have a heating system which is more than 20 years old, and around 70% are of the old, manually-controlled type. Consequently, homeowners, social housing tenants and commercial buildings with these outdated systems are unable to take advantage of the energy efficiency, running costs and comfort of modern appliances. Replacing traditional manual storage heating with high heat retention heaters such as the Dimplex Quantum (at an approximate cost of £2,100 based on three heaters, including installation) could reduce the annual running cost by up to £418. This is a total of £8,360 over the typical 20 year lifespan of the heaters. The Department for Communities and Local Government estimates that around 65% of all storage heated homes and apartment buildings would benefit in Energy Performance Certificate (EPC) from an upgrade to a high heat retention heater. As we move towards becoming a low-carbon society, energy managers have a role to play in facilitating the shift towards lower carbon heating. The key will be in working closely with manufacturers to help customers to future-proof their heating through modern, energy efficient appliances. For more information visit www.gdhv.com

HEATING

RINNAI’S ENERGY EFFICIENT MULTIPOINT WATER HEATER - NEVER RUN OUT OF HOT WATER AGAIN! Now available for domestic applications from Rinnai are the 11i A+ rated continuous flow gas fired water heaters, with high energy efficiencies, low running costs and a consistent delivery of temperature accurate water.

innai makes over 2million water heaters per year and as such is at the forefront of creating unit cost advantages for installers. The units are probably the most competitively priced type of their kind currently available on the UK market. The Rinnai 11i is a modern-day variant on the multipoint water heater - plus all technological advances and innovations - yet at a very similar cost to its lower specification counterparts. Increasingly, installers are recognizing the benefits of Rinnai’s modern-day variant on traditional water heating solutions in terms of the cost effectiveness of these high performing multipoint appliances. Rinnai’s multipoint water heaters are far more energy efficient than outdated storage systems and are the preferred water heating method of choice in domestic properties and light commercial sites such as, cafes, pubs, restaurants and other smaller to mid-size outlets. The increase in popularity is quite simple – these units deliver high volumes of water instantly at any time of the day, or night, all at accurate temperatures for user comfort and safety. They are also easy to operate and simple to install and maintain. These Rinnai multipoint water heaters, for example, eliminate the problem of sudden changes in water

temperature, resulting in cold showers or scalding hot baths – the water temperature you set is the water temperature you get. So, if somebody is showering at 42°C and a tap is turned on to draw a bath elsewhere in the property, the temperature does not vary, and there is no chance of either user running out of hot water. The lightweight 15kg 11i water heater is compact enough to install in the smallest of spaces and is the

ideal replacement for large obtrusive cylinders. Featuring easy to use digital controls this small but robust and durable unit is also simple to install. The unit draws down 6.10kW – 21.60kW of natural gas and has an eleven litre per minute maximum flow. Internally wall mounted the 11i water heater measures 675mm high x 370mm wide x 134mm deep. For more information visit: www.rinnaiuk.com

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

LIGHTING

THE GREAT OUTDOORS LIGHTING THE WAY TO SMART CITY NETWORKS…. The focus for smart lighting is shifting from interior to exterior and the outdoor lighting industry is ready to flick the switch. Martin Allcock, CP Electronics’ OEM Sales Manager, looks at how new technology is shaping the smart cities of tomorrow.

he proliferation of smart technology and the internet of things (IoT) has galvanized the modern home. We’re currently living in the era of the ‘smart revolution’ and this isn’t expected to slow down. A market report by Statista estimates that the ‘Smart Home’ market will grow at a CAGR of 13.2% between 2019-2022, and be worth US$6,768m by 2023. We’re connecting our TVs to the internet and can control our heating, washing machines and dishwashers through the tap of a screen. This technological revolution is extending beyond the home. The ‘smart city network’ is entering the public’s consciousness - people are becoming increasingly aware of the benefits these exterior sensors and connected systems offer and are beginning to trust them.

Monitoring everything from air and noise pollution to lighting, the introduction of ‘smart city networks’ is putting sustainability, health and safety and energy efficiency at the forefront.

TAKING THE INDOORS OUTDOORS Neon and sodium street lamps have been used to illuminate parks, pathways and building perimeters, retail parks and warehouse bays for decades. Street lighting gives the general public a sense of security and can often act as a deterrent to criminal activity. However, traditional street lighting is typically left on or dimmed during the early hours of the morning when no one is around, costing in both energy and finances. In April 2019, Hampshire County Council made the move to switch lights off on certain residential

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streets for three hours a night, between 1am and 4am, equating to £230,000 of energy cost savings per year. Alongside this, turning street lighting off during the darker hours brings its own security concerns. There’s a risk that crime rates may spike in the areas where lights have been switched off, and arguably, residents won’t feel as comfortable or as confident as before. Similar to their indoor counterparts, innovative outdoor lighting solutions feature passive infrared sensors (PIRs) that are added to street lamps and light-up when a human enters the sensor’s radius. While the principles of outdoor and indoor lighting are similar, there are key differences. Exterior lighting has to withstand harsh elements from the outside environment, such as dust and damp. To combat this, a new breed of smart lighting technology has been developed and addresses these issues with many sensors rated as IP66 and IK08, guaranteeing classleading protection against impact and the ingress of water and dust. Smart outdoor lighting is an excellent solution that can help curb energy usage, cut costs and help reduce safety concerns.

LIGHTING CONNECTING TO MULTIPLE BENEFITS Outdoor solutions rely on intuitive controls that detect movement and only light-up when people are nearby. They can be added to lamps and can be programmed to switch off, or to dim down when not needed. They can also work in relay, using motion detection to detect movement and lighting up the luminaires in front of, above and behind the person. This is a significant step-change to conventional streetlights, which stay lit up at the full output during specifically programmed times, or from dusk till dawn when the photocell detects that there is not enough light. Importantly, these lighting sensors gather information about the surrounding environment such as footfall and the public’s behaviour. The information is then shared via building or remote management systems to improve knowledge and performance. For the public, this means higher levels of safety and comfort. For owners, they benefit from reduced energy costs and improved data gathering to drive further efficiencies in maintenance.

A NEW ‘PLUG AND PLAY’ STANDARD While smart lighting will incur financial savings in the long run, the initial outlay of smart sensors may be difficult for investors, local authorities and building owners to justify. In order to combat this, the outdoor lighting industry must ensure these solutions are specified and future-proofed, so that return on investment (ROI) is recognised.

One of the world’s most respected manufacturers, Signify – formerly Philips Lighting, has established a new industry standard for outdoor lighting control. The Sensor-Ready Driver (SR) is paving the way to a smart city network, the SR driver accommodates technologies, components and gateways from SR partners such as CP Electronics, thereby increasing choice, minimising risk and ensuring a genuinely scalable approach for specifiers. At the heart of each system lies an SR certified driver, such as Philips’ own Xitanium digital SR LED driver. This is a version of DALI (Digital Addressable Lighting Interface), the widely accepted standard for the lighting industry. This driver essentially powers each sensor in its network, eliminating the need for a wired supply for each one. The choice of sensor will be driven by the exact nature of the application and the desired benefits. For example, specifiers will need to consider whether the outdoor lighting or street lights operate as stand-alone units, or if they work together. Another factor is whether dimming is a requirement, or if they simply need to trigger when certain levels of light have been achieved. Thanks to the growing interest in smart cities, a wide range of externally rated sensors are already available, all compatible with SR drivers, each offering a range of performance parameters. It’s certain that innovation will continue to drive advances, giving investors in the technology and installers a wealth of choice. A recent development is Legrand’s ground-breaking Wattstopper FDP301 Series, shortly to be introduced

into the UK by CP Electronics. Externally rated and with a detection range of 30m diameter, Wattstopper sensors can be mounted up to 12m high, making them suitable for virtually all outdoor lights. Installation is quick and easy too – the sensors simply plug into the lighting unit and can be commissioned, monitored and controlled either locally or through the smart city network, giving engineers greater flexibility and control. Functionality in the series includes motion detection, ambient lighting levels and even dimming control so that the public never need to walk into a totally dark area. The firmware can also be upgraded, thus futureproofing the product and installation. Finally, for commissioning or if any settings need to be changed at a later date, the Wattstopper sensors can be easily programmed and managed via a smart device such as a smartphone or tablet.

SWITCHING IT UP FOR SMART CITIES The fact is, the smart city is virtually here, and sensors are lighting the way forward. The key, as with all projects, is to ensure that when switching to new solutions, they deliver the benefits required at optimum cost in the area specified. Lighting up the outdoors will require a unique approach depending on the street or building in question. This will come down to factors such as footfall, costs, the needs of the people, whether it is a high-crime area, environmental issues, and budgets. However, with the SR platform and a steadily increasing range of technologies, there is a solution that should fit most, if not all needs, that will take us into the next generation of connectivity. www.cpelectronics.co.uk.

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FINANCE

SHIRE LEASING ENABLING AFFORDABLE ROUTE TO ENVIRONMENTAL GAINS AND ENERGY EFFICIENCY

hire Leasing PLC has announced the opening of a new business unit with a strong focus on the provision of vendor finance for the clean tech and renewable energy markets, insisting that asset finance and leasing solutions are an enabler for businesses to achieve long-term environmental gains and energy compliance affordably. The independent asset finance company has been forming relationships with B2B equipment vendors and suppliers since 1990, allowing enduser businesses to invest in equipment and projects through flexible finance options. Since becoming a partner of the Government-owned British Business Bank in 2014, Shire have had the capability to expand into emerging markets and now aim to work directly alongside the clean tech suppliers that are allowing businesses to deliver energy efficiency and make environmental improvements. To support installers in offering finance solutions, Julie Henehan (Corporate Development Director of Shire Leasing) has employed a team with a previous background in working with a range of renewable technologies such as LED, HVAC, Solar PV and Wind. Commenting on compliance within the industry, Henehan said, “With the focus on transition to a sustainable, low carbon economy and delivering tangible improvements in energy efficiency and emissions, we are looking at a future where compliance and being a responsible organisation is not optional. There is already a growing requirement on larger organisations for carbon and energy reporting with initiatives such as SECR and ESOS encouraging the implementation of energy efficient measures for both environmental and economic benefit. Greater transparency for investors and the future goal to achieve Net Zero is sure to place further and growing demands for businesses over the coming years.” Shire Leasing claim that leasing acts as an enabler for businesses to invest

in required equipment and energy projects cost-effectively, supporting companies in cutting costs and improving productivity, whilst reducing their carbon emissions. Emerging technologies have the capability to revolutionise the workplace and to impact positively on the environment. However, very often this new technology hasn’t been budgeted for as it is so cutting edge, or simply falls short to other financial priorities. “Our finance options can be so powerful in supporting businesses in acquiring the equipment they need and aligning the repayments to the improvements delivered. Through leasing, businesses can affordably implement long-term energy efficiency plans. Clean tech is constantly evolving. Through leasing, businesses can avoid investing in one-off energy solutions that could become obsolete and instead continually upgrade to the latest technology, for a greener, cashflow friendly future,” Henehan said. Initially based in Henley-on-Thames, the specialist vendor team are welcoming discussion with B2B clean tech and renewable energy providers, so that business customers can be offered manageable payment options to invest in their energy efficiency measures and ongoing projects to achieve compliance. By offering the additional payment options, suppliers overcome customer

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

Wayne Hall - Julie Henehan - Carl Hart

budget restrictions and minimise their own cash flow risks, as Shire often pay the full value of the agreement within 24 hours of the equipment being installed and all documentation being completed. “Simplicity. Productivity. Profitability” said Henehan, “These are key deliverables for clean tech and renewable energy equipment suppliers and their customers choosing to work with us. Our financial technology tools offering is second-tonone, which allows vendors to seamlessly introduce finance offerings into their sales processes. In addition, the flexibility of being an independent funder with full control over credit policies, coupled with a panel of strategic funding partners to place deals with third parties if required, allows for optimum first pass approval when proposing deals”. The financial technology solutions have led to Shire Leasing being awarded as ‘Innovator of the Year’ at the 2018 Leasing World Awards. More recently, Shire Leasing was awarded as “Outstanding Operations Team” at the 2019 Leasing World Service Excellence Awards. The addition of the Southern Office supports Shire in achieving its company vision: ‘To provide a marketleading service through innovation and expertise, delivering flexible funding solutions for British businesses.’ https://www.shireleasing.co.uk/

FINANCE

MANUFACTURERS ARE TAKING CONTROL OF ENERGY SAVING WITH ENERGY-AS-A-SERVICE

new research paper from Siemens Financial Services (SFS) says innovative Energy-as-a-Service solutions can help UK manufacturers save up £5.6 billion over the next five years, including £954m in savings for the chemical manufacturing sector and £800m in for the Food and Drink sector. The report, entitled ‘Future Savings – Current Gain’, estimates that by partnering with a trusted vendor to deliver energy savings, some manufacturing sites could reduce their costs and deliver energy saving by 25-40%. Manufacturers are under increasing regulatory pressure to lower their carbon emissions. And, with energy prices also on the rise, businesses are motivated to invest in reducing their energy usage. Yet the research highlights that some manufacturers are discouraged by the cost and complexity of undertaking energy investments. However, delaying investment not only means industrial energy users are missing out on

operational cost reductions but also risking their competitive position as other businesses race ahead. In order to protect and improve their competitive position, businesses need to confront energy issues using Energy as a Service solutions, which combine strategic planning, system deployment and digital technology. According to the report, Energy as a Service can help future-proof their energy supply, drive down consumption costs, reduce exposure to unpredictable cost hikes, drive carbon reduction achievement, and create new revenue streams. By partnering with dedicated energy solution providers with an Energy as a Service solution, businesses can secure better financial and strategic outcomes, protect themselves from risk, and allow them to focus on their core competencies. Mark Kelly, Project Development Director, Distributed Energy Systems (DES), Siemens says, “The benefits of having industry expertise on side when

looking to implement an intelligent energy saving strategy are becoming increasingly clear to manufacturers. By partnering with a trusted vendor which is focused on delivering outcomes through Energy as a Service, businesses can optimise their energy use more rapidly and access operation cost savings more quickly.” Mark McLoughlin, Key Account Manager - Siemens Industries and Markets, Siemens Financial Services adds, “There’s so much untapped potential to leverage manufacturers’ energy savings for their competitive advantage. New financial arrangements like Energy-asa-Service enable businesses to take a strategic approach to their energy challenges, immediately improve operating cashflow, and focus their limited capital on their core business.” Download the paper here: https://new.siemens.com/uk/ en/products/energy/topics/ distributed-energy-systems/dessfs-industry-report-part-2.html

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LEGISLATION

HOW TO TACKLE ENVIRONMENTAL COMPLIANCE IN A DECENTRALISED ENERGY MARKET In this feature Malcolm Gray, CFO and co-founder of Libryo, discusses the challenges energy businesses face with everchanging legislation

ver the past decade, the UK’s energy supply has diversified substantially, from primarily coalpowered to a mix of energy sources including off grid generation such as micro-renewables and onsite heating and cooling. Largely driven by legislation and a need to pivot our energy infrastructure to a more sustainable, less fossil fuel-based generation capacity, we are seeing large-scale power plants shutting down in favour of more flexible, smaller decentralised generators. The risk to the UK’s outdated energy infrastructure and its lack of resilience were highlighted with last month’s power shortages due to concurrent outages at a large power station and offshore windfarm. Smaller, more agile configurations with a breadth of generation methods are modernising the energy market and diversifying it. These recent shifts in approach to energy in the UK are part of a global trend to source alternative energies that shows no sign of stopping. However, with the decentralisation of the energy market, different methods of generation have differing legislation and regulations. Legacy legislation is becoming increasingly outdated by the shift in methods of energy generation and whilst legislation is driving change at a fast rate, the legal knowledge to accompany this is poor. Many regulations relate to the ‘old way’ of doing things, so as they are being addressed, they are changing, such as the old policies on combustion plants being replaced by the Industrial Emissions Directive. Even recently introduced policies have caused widespread confusion, such as the suspension of the newly introduced Capacity Market. Importantly,

decentralized energy production, such as wind and solar, brings with it a broader, more complex range of environmental and health and safety regulations, that are newly created to address a more distributed energy solution. Other policies such as the Climate Change Levy, the Carbon Reduction Commitment, Gas Supply Emergencies and the recent Energy Savings Opportunity Scheme (ESOS), are impacting the adherence and reporting required. The latter can issue fixed penalties of up to £50,000 per breach and has recently published the names of large businesses who have been fined for non-compliance and subsequent failure to rectify this, with 26 firms owing more than £ 240,000 to the Environment Agency to-date. Compliance is made of three crucial elements; understanding which protocols apply to an organisation, managing operations in order to comply with these regulations and auditing operations to report against them. With the introduction of new protocols and an increasingly diverse spread of different sites, possibly across different countries, ensuring compliance is an increasingly complex and constantly changing target. Environment, Health & Safety (EHS) policies can be a jungle for risk and compliance professionals to try and navigate, and whilst each is regulated separately, they are interlinked. The sanction for breach of most environmental laws is prosecution of an individual or company by the relevant regulator in the criminal courts varying from fines right up to five years’ imprisonment1. However, knowing the legal obligations that a business faces – let alone the compliance status – has to-date remained very difficult, time consuming and expensive, particularly multiplied across numerous locations and countries in these growing multi-jurisdictional businesses. Partnering with a legal specialist and leveraging new technology that can provide automated information on your relevant legislation, and how to comply with the multitude of laws, is crucial for businesses. Removing any 1 https://www.gov.uk/government/publications/ environment-agency-enforcement-andsanctions-policy/environment-agencyenforcement-and-sanctions-policy

ENERGY MANAGER MAGAZINE • NOVEMBER/DECEMBER 2019

doubt or uncertainty, and with that removing the risk associated with noncompliance, allows energy generators to focus on their business and removes the headache of trying to understand the law and ensure compliance. The first element of compliance – understanding – is particularly challenging. The complexity and everchanging nature of energy legislation coupled with the multiple jurisdictions that sites may sit across, exacerbates this problem. Identifying this challenge, a team of international lawyers and technical specialists developed Libryo as a solution. Libryo is an automated, cloud-based platform that helps organisations know the law that applies to their business, in every jurisdiction. Using this platform provides accuracy and efficiency for those responsible for compliance and removes any potential confusion by providing the legislation relevant to each specific site, regardless of its location or country. Law is poorly organised, changes regularly, is not searchable and is written in complicated phrases. Libryo’s solution enables a business to pull up a specific site or operation and review the requirements, rather than being faced with a mammoth task of wading through reams of legislation to see if it needs to adhere to certain regulations, and then to work out if it does comply. With global clients such as a speciality chemicals company, engineering firms and the National Metrology Institute of South Africa, Libryo operates all over the world helping more than 9,000 users across 130 organisations. Operating since 2016 and headquartered in London, Libryo makes it easier to know the law by filtering, configuring and tracking unique legal registers, enabling people to quickly navigate regulatory complexity with clarity and certainty. The evolution of the energy market is only increasing in its haste, as is the legislation to accompany each element. With both the ongoing decentralisation and geographical spread of energy companies and their sites, compliance will continue to be a challenge and it’s crucial that energy generators ensure compliance to avoid hefty fines or even prison sentences. www.libryo.com

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Cut costs without cutting care

Every cost is under scrutiny and none more so than energy costs. With demand for electricity and heat 365 days a year, hospitals, commercial and industrial businesses are ideal candidates for energy savings. Thatâ&#x20AC;&#x2122;s why combined heat and power installations have become increasingly popular. For more information on the benefits of CHP go to clarke-energy.com and visit natural gas pages or contact our sales dept on 0151546 4446. + + + +

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