Energy Management

ENERGY MANAGEMENT CLIMATE CHANGE AGREEMENTS – WHY YOUR BUSINESS SHOULD TAKE ACTION NOW TO FEEL THE BENEFIT

Claire Markham, Director of Sustainable and Renewable Energy at Inspired Energy

At a time when businesses If their processes are eligible, are seeking to reduce then new applicants need to start their OPEX costs wherever gathering the information they need possible, the proposed to apply for a CCA now, to ensure reopening and extension of they can submit their application the Climate Change Agreement (CCA) before the 30th September deadline. scheme will be welcomed by many. But This includes information around: those that wish to secure an agreement • the specific facility/facilities – and benefit from the significant carrying out eligible processes savings they bring – must act fast. • any environmental permits

The CCA scheme, which enables they hold (including existing or eligible businesses to receive a discount previous CCA or EU ETS permits) of up to 92% on the electricity element • the manufacturing of the Climate Change Levy (CCL) and process they use 83% on the gas element, is currently set • the amount and type to end on 31st March 2023. However, it’s of energy they use been so successful that the Government • other activities directly associated is now proposing to extend the scheme with their eligible process that will to March 2025, and they have already have an effect on CO 2 emissions reopened the CCA to new applicants. It’s The CCA application process estimated that this extension will save can therefore be complex and timebusinesses around £300m each year. consuming for businesses, and with the As the Government strives to coronavirus pandemic causing ongoing rebalance gas and electricity CCL rates, disruption for many organisations, it the rate on gas will continue to rise over may not seem like the ideal time for the next few years, which will increase businesses to take on extra admin. But energy bills for most businesses. This will the financial benefits of gaining a CCA make holding a CCA even more valuable. can make such a substantial impact on While the extension and reopening an organisations’ energy bills that it’s of the CCA depends on the outcome of vital for eligible businesses to apply. the Government consultation, eligible businesses must act quickly to ensure AGREEMENTS that they secure this discount if it is REQUIRE ACTION approved. The application window Securing approval to participate in for new applicants closes on 30th the CCA scheme is just the first step September 2020, and some trade in the process. If the Government’s associations require submissions up to proposal is approved, then the next 4 weeks before this date, which means target period will run between January there’s limited time for businesses 2021 and December 2022. This means to submit their applications. that all applicants – new and existing – will NEXT STEPS FOR NEW APPLICANTS need to be prepared to take action to achieve their agreed targets within this time period against a 2018 baseline, in

Businesses that think they order to secure their discount on the might be eligible for a CCA should CCL between July 2023 and March 2025. investigate whether their processes Savvy businesses will be putting plans do indeed fall under the scheme’s in place now to ensure they make steady criteria. A full list of eligible processes progress towards their target within can be found in Appendix A of the target period. There are a range of the CCA Operations Manual. different targets businesses can work towards under a CCA, but they all involve either carbon or energy reduction. This means that any measures businesses put in place with the aim of achieving their targets should also help to boost their sustainability credentials. Those that are required to participate in the Streamlined Energy and Carbon Reporting (SECR) scheme should also be able to include any carbon or energy reduction measures they take to achieve their CCA target in their SECR reports. Existing participants must be careful not to be complacent, as the proposal also includes plans to reset the baseline from 2008 to 2018, and increase the buy-out rate from £14/tCO 2 e to £18/tCO 2 e. This will mean that companies that have previously relied on early overperformance and buyouts will need to focus on taking action instead.

SEEKING SUPPORT IN CHALLENGING TIMES

Of course, for the many organisations that are facing reduced workforces and increased workloads due to COVID-19, preparing and submitting a CCA application within the next few months may seem unachievable – but that’s where the support of external experts can make a real difference.

By working with an energy consultant, businesses can benefit from the expertise of those who deal with energy compliance on a daily basis, which should streamline the CCA process and take the burden off their in-house team. Whether they choose to go it alone or seek external support, however, it’s crucial that businesses don’t delay in order to secure the substantial savings available for those with a CCA. inspiredenergy.co.uk/landing/cca

ENERGY MANAGEMENT

PILOT GROUP ENERGY MANAGEMENT SYSTEM TO SAVE ONE MILLION TONNES OF CO2 IN 2020

• The new Pilot

EnergyMgr 2.0, launched in

October has already seen a strong start to sales • Pilot Group expect to save businesses more than one million tonnes of CO 2 in 2020 and guarantee at least 25% saving on fuel bills • New features added to the system means

Pilot Group can meter energy usage

Pilot Group’s EnergyMgr 2.0, launched in October, is expected to save more than one million tonnes CO 2 being produced in 2020. Pilot Group has also made several new features available and numerous upgrades to the system to ensure that the energy management system delivers savings in both costs and energy usage using the latest technology. The new intuitive interface will make it easier for customers to navigate menus with a new dashboard that displays utilities and equipment in real-time. The addition of a multi-site feature means that customers can view performance, energy usage and make changes to each site from any

internet enabled devices, providing customers ultimate control and visibility.

In addition, with a new intelligent reporting tool, the EnergyMgr 2.0 will automatically convert kWh burned to CO 2 tonnes, which allows customers to keep on top of CO 2 used month on month, year on year.

By measuring how much energy is used, businesses can begin to see how changing some processes and ways of working can significantly reduce the overall carbon footprint. To achieve this, Pilot Group will work with customers to help create a bespoke energy saving strategy ensuring that optimum energy efficiency is realised.

The Energy Management System is on course to revolutionise the monitoring, control and management of heating, air conditioning systems and compressors as Pilot Group expected it to. In addition to improved control and management of heating, the upgraded EnergyMgr 2.0 system can now control an existing lighting system, or new system which can be supplied by Hilclare, resulting in an all in one, cost effective management system.

The EMS integrates a central control unit with an intelligent software and highly accurate digital sensors to optimise the performance of industrial heating systems.

Chris Pearson, Managing Director at Pilot Group commented: “At Pilot

Group we believe in using technology to make the places we live and work smart, safe and sustainable. “Since 1991 we have saved more than 9 million tonnes of CO 2 entering the earth’s atmosphere, something we are extremely proud of, and, following two months of strong sales and by utilizing the visualisation feature, we expect the Energy Management System to save more than one million tonnes of CO 2 being produced in 2020. “Not only this but the EnergyMgr 2.0 utilises the latest technology to provide customers with average savings of 40% on their heating bills and coupled with our LED lighting solutions this can rise to 60%.” Since acquiring Vickers Electronics, an energy management specialist with over 28 years’ experience of providing energy savings in industrial and commercial businesses, Pilot Group has invested heavily in product development. All systems come with a complimentary 12-month warranty and service agreement, which includes an onsite annual health check. The warranty and service can be extended at any time to ensure that the energy management system contributes to energy savings with maximum efficiency. The agreement includes full parts and labour warranty, annual service, engineer callouts and software updates. www.thepilotgroup.co.uk ENERGY MANAGER MAGAZINE • JULY/AUGUST 2020