Opinion

OPINION

PROTECTING YOUR BUSINESS IN A VOLATILE ENERGY MARKET

The COVID-19 outbreak has WHAT IS A PRICE RISK prices in your strategy will also enable you had a significant impact on MANAGEMENT? to benefit from a falling market price trend, every aspect of global business as well as the possibility to take spot in and the energy sector is no Protecting your organisation against delivery for part or the whole portfolio. Sell exception. An unprecedented energy price volatility is important to back has been particularly well-received slump in demand has seen prices avoid risks to your business. Simply in recent years, as the renewable share of plummet; coal has been the hardest hit, settling for the daily market prices the energy production market increases. with worldwide demand tumbling by might not necessarily be the most There is no definitive time to almost 8% in the first quarter of 2020 cost-effective option, particularly if your hedge energy; it can be done monthly, compared with the same period last year. business is a large-scale consumer quarterly or when the time feels right

So how can organisations of natural gas, electricity, or fuels. to help your organisation meet its guard against market volatility Having a comprehensive price risk targets and protect profit margins. while unprecedented uncertainty management strategy in place can mitigate Always consult an energy expert before persists in energy market? such volatility and enable users to manage making any significant changes to your A GOOD STRATEGY budgets more effectively. It will also help to protect margins, minimise price swings contract to avoid potential penalties or being forced to unwind hedges. IS VITAL A demand shock on this scale may be followed by a consequential change shock impacting supply going forward, with energy producers reducing production or shutting down altogether. If, or when, this happens, it is difficult to predict prices and increased volatility and uncertainty of the market direction often occurs as a result. Businesses may consider whether, in the wake of significant price fluctuations, it is more beneficial to fix energy costs long-term or to buy in the short-term market, also known as spot buying. There is no ‘one size fits all’ answer. Every business is unique, with its own individual tolerance to price fluctuation and supply risk. Formulating a long-term dynamic energy strategy will enable organisations to become more resilient to market changes. Important elements of such a strategy involve factoring in price trends and developing a hedging plan. Price fluctuation – albeit on a smaller scale than during the pandemic – is nothing new to the energy sector. Over the years, we have seen energy markets exposed to extreme market conditions and price changes, and we expect this to happen in the near future. Levels of demand for energy are greatly influenced by external factors such as the weather, climate change, competition and changing regulations. Therefore, the possibility of extreme price swings within the energy market will continue to exist long after the current crisis is over. Experience shows that the best way to combat price fluctuation and to safeguard supply is to have an efficient, robust risk management strategy in place. and enable you to stay competitive. The first step is to understand how your business is affected by unexpected price fluctuation; and whether rising or falling prices have the biggest impact. This requires a thorough analysis of both external and internal factors, to determine your organisation’s objectives and unique tolerance to price fluctuation. While external factors such as the industry in which you operate, the competition and the weather may be beyond your control, it is important to understand how these known risks affect the market and to evaluate your business’s tolerance to market volatility. Various internal factors must also be considered, such as protecting margins, securing budgets and other financial requirements. In addition to helping you manage projected budgets and costs, this analysis will enable evaluation of suppliers and utility infrastructure, capacity and storage while monitoring price and aiding the credit process. This comprehensive risk assessment, used alongside in-depth market insight and daily monitoring, will establish short and long-term goals that will ensure your business has the right information to buy better and buy smarter energy. Energy price hedging is another integral element of your risk management strategy. Energy hedging solutions will benefit from market intelligence and your organisation’s data. Using hedging tools such as fixed-forward pricing, caps, and collars, depending on your business’s needs will help you take advantage of the rise and fall of energy prices. Including sell back or unfixing forward AN EYE ON THE MARKET Crucial to making informed decisions is keeping a close eye on the energy market. Tracking energy prices, market trends, carbon positions and regulatory changes will give you the most up to date market intelligence and pinpoint the risks and opportunities in the market at any given time – essential if you are to make informed decisions on energy procurement. Monitoring the markets effectively will not only help you to understand prices and identify opportune moments, it will enable you to avoid fixing at a moment when prices are at a peak. It is also important to keep abreast of any changes to regulation that may impact your business or sector, whether it is relating to energy consumption, such as ESOS or Contracts for Difference (CfD), or energy supply – for example, IMO 2020. Monitoring the markets and legislation can be a time-consuming and somewhat overwhelming process if you are unsure what to look out for and what fluctuations could benefit or impact your business. The rapidly changing nature of energy markets can make tracking energy prices problematic, particularly if organisations lack the in-house expertise to monitor prices on a global scale. FUTURE-PROOF YOUR ENERGY PROCUREMENT The ongoing global COVID-19 pandemic has led to significant changes in demand for many businesses around their energy consumption, as well as price and cost uncertainty. While events such as this are

ENERGY MANAGER MAGAZINE • JULY/AUGUST 2020

thankfully few and far between, it is still important to always have an eye on the market to mitigate risks and maximise opportunities as you never know what might be around the corner.

It is good practice to review your energy portfolio regularly and consider the contract tenure. Markets can rise and fall but being ahead of the game can reduce potential risks and open up opportunities to make savings in the longterm. Explore whether your current contract gives you the option to extend, capture and lock in historically low prices or request a longer hedging horizon should the market dynamics change.

Make sure you understand your payment and credit terms on your contracts, through appropriate due diligence. Communicating regularly with your suppliers will help minimise the impact of financial or commercial risk to your business.

The success of an energy price risk management strategy is how you manage it. Once in place it needs to be monitored and regularly reviewed, either by an internal team or outsourced to a third party. What might be a risk today, might not be tomorrow.

Rolf-Helge Sørensen is Head of Risk and Trading, EMEA, at World Kinect Energy Services. Managing a team of 10 portfolio managers and analysts based in Norway, RolfHelge is responsible for price risk management and trading activity within power, gas and EUA in the EMEA region.

COULD COAL MINES SOLVE BRITAIN’S ENERGY CRISIS?

Could a village in the North East of England be the trailblazer for geothermal energy? A 1,500-home garden village situated in County Durham is the first of its kind to be powered by geothermal heat from mine water. Guaranteeing no price fluctuations and the potential of a zero carbon footprint, Garry Forfar, regional manager at COPA-DATA UK, examines the Seaham Garden Village project and explains how industrial automation software could be critical to supporting the success of similar projects.

Seaham Garden Village will consist of 750 affordable homes and the same number of private homes, plus medical and innovation centres, shops and a school. It will be the first working example of a network powered by geothermal heat from the nearby abandoned Dawdon mine. As part of a water treatment scheme overseen by the UK Government’s non-departmental Coal Authority, the Seaham pilot project is based on the idea of geothermally heating water from the UK’s extensive network of flooded abandoned coal mines.

Mine heat can remain unaffected by external factors and, according to the Financial Times, advocates say there is enough geothermal energy in the UK’s of power generated, store the energy or, if the grid abandoned coal mines to heat 180 million homes. allows, sell the energy onto another supplier. Furthermore, CO 2 emission savings generated So far, so powerful. But, what if – aside from being by this concept are estimated at 55 per cent. able to analyse trends in real-time – operators could

There is a lot riding on the Seaham Garden also benefit from knowing this information in advance?

Village project to prove successful – with a Gathering data over time makes it possible to identify view that it could one day be rolled-out across forward trends that will make energy generation more the UK’s extensive abandoned coal mines. efficient. Industrial automation software is already INSPIRING TRUST used in this way within smart grids or micro-grids.

As with all renewable energy sources, WIDER POTENTIAL maintaining a stable energy supply from If the Seaham Garden Village proves geothermal sources can be problematic. The successful, then other district heating schemes supply of power from Dawdon mine to Seaham may be built on nearby coalfields and industrial Garden Village will be transferred through a software platforms will prove critical in unique pipe network using a heat exchanger. In rolling these systems out across the UK. order to remain efficient, this geothermal heat A good example was achieved for EVN Hanoi, network must remain stable all-year round. the board within Vietnam’s national electricity

This is where industrial software platform can operator. Petrolec, the local power distributor, prove critical. One such platform is zenon, developed recommended that EVN Hanoi implement a by COPA-DATA. The intuitive software allows operators new control system based on zenon automation on energy grids to track data, deliver reports and software for more than 30 of its 110 kilovolt (kV) optimise the performance of energy generation substations. zenon gave EVN Hanoi the overview equipment – all towards the goal of delivering savings. of the system that it needed and, furthermore,

For a project like Seaham, zenon would be used allowed the organisation to control Hanoi’s entire to control and connect key devices in the network, network locally from a single, centralised point. such as linking programmable logic controllers (PLCs) With an estimated 25,000 square kilometres and intelligent end devices (IEDs) with sensors. The of disused coal mines and tunnels in the UK, the software would process the data needed to ensure success of the Seaham Garden Village project poses that the village’s homes are powered reliably and huge potential. Industrial software platforms will be effectively. For instance, if zenon identifies a decreased crucial in making these renewable energy concepts demand for power during certain times of the day, a reality. https://www.copadata.com/en/ operators can use this insight to reduce the amount

OPINION

THREE LESSONS FROM THE BANK HOLIDAY WEEKEND THAT ALL EUROPEAN UTILITIES AND DER OWNERS/ OPERATORS NEED TO KNOW

Thomas Jennings, Head of Optimisation, Kiwi Power

The late May bank holiday in Great Britain gave a real sense of the future of power generation. With significantly reduced demand thanks to the COVID-19 lockdown, at lunchtime on 25th May, over half of the electricity mix was being met by wind and solar. Over that weekend, we saw the energy mix of 2025 – today. However, while more renewable energy is a welcome trend, it also creates system volatility. The need to smooth this volatility presents a huge opportunity for distributed energy resource (DER) asset owners, who can help balance the grid. The Bank Holiday weekend was a case study on just how valuable this can be.

Still, not all DER asset owners were able to make the same market gains. With the ever-progressing shift to a more renewable, flexible future – and the role for DERs increasing – how can DER asset owners maximise revenue and return on investment? It boils down to three simple tricks: be open to short-term thinking; know your asset; make a move on new opportunities.

THINK SHORT-TERM We often view an asset with its payback period in mind. That’s not wrong; if we can turn an eight-year payback into a six-year payback through clever thinking and market use, we’ve done well. But sometimes a short-term change can unlock even bigger gains. We saw an opportunity to maximise returns for our clients in the new Optional Downward Flexibility Management (ODFM) market. Introduced in May 2020 through the Balancing Mechanism to tackle the unusually low lockdown demand, ODFM is unlikely to be a product that is needed every day. However, the ability to react to the volatility created by coronavirus meant DERs had access to a short-term revenue generating option, which others missed out on. These assets will make revenue by turning down – a rare treat for DERs.

KNOW YOUR ASSET

While it might sound simple, knowing your asset, it’s capabilities and applications is key for getting the best from it. A ramp time of 30 seconds, 90 seconds, or five minutes means access to different ancillary services; knowing where you fit in that mix presents different revenue generating streams. But there’s more to it than that. We’ve typically viewed DERs through the lens of frequency response or to reduce demand peaks, yet the last bank holiday has shown they can also be used for supply turndown or demand turnup services. Understanding what flexibility your assets and business operations possesses allows you to make the most of some of that short-term thinking mentioned above. With so many potential revenue streams, this can become quite complicated, so getting a DER manager involved can take the stress away.

MAKE A MOVE ON NEW OPPORTUNITIES

While DERs were broadly the winner from the bank holiday weekend, one asset type really stole the show – storage. Battery storage will become increasingly important for system flexibility. Those businesses that already have these

assets really saw the value over the bank holiday weekend – if prices remained at that level, they could have seen a return on investment of just two to three years. Storage assets have taken over the frequency response market in Great Britain and provided essential frequency services over the weekend, while also offering greater flexibility through charging and discharging as needed.

Right now, the potential returns from storage look lucrative thanks to new revenue streams; nonetheless, they will also continue to do so as demand for flexibility increases. In Great Britain, any less than 10GW of storage by 2025 could leave the grid imbalanced, as more and more renewables pile onto the system.

The long weekend at the end of May brought into sharp focus why we need DERs, but also how different models can generate different returns. Across Europe, the energy landscape is changing and, as Project TERRE (a new Europewide balancing project which will enable cross border trading) widens access to the market, asset owners need to jump on the opportunities in front of them. There are many complexities around market access, grid flexibility and revenue stacking – but DER managers, can manage away these challenges for asset owners. The benefits of this extend past a better rate of return for the owner, as you can help facilitate the shift to a cleaner grid, playing your part in the wider energy transition. www.kiwipowered.com

HOW TO MANAGE THE TRANSITION BACK INTO OFFICE WORKING

As we head into the Nic Redfern, Finance Director, summer months, the UK’s lockdown measures KnowyourMoney.co.uk are slowly being relaxed. themselves will also have to follow As stated above, This in turn is a source of strict policies around handwashing and KnowYourMoney.co.uk’s excitement, trepidation or indifference, what to do if they cough or sneeze. research has shown that depending on who you ask. Such protocol will, of course, need people are concerned about Indeed, a recent survey of more to be determined in advance and the easing of lockdown measures. After than 2,000 UK adults commissioned clearly communicated to all employees months of largely avoiding public spaces by KnowYourMoney.co.uk revealed before they return to the office. – and certainly indoor spaces – the return that exactly half (50%) were anxious What practical changes are required to crowded buses, trains, streets and about social distancing measures being will depend entirely on each business’ offices is understandably daunting. curtailed. And in a business context, setup; how big a space they have, Businesses must recognise and the evidence certainly suggests that what furniture and equipment they respect these concerns. Remote working, employees are not exactly clamouring require in it, and how many staff will be while not without challenges, has been for a return to office working. working in the office at any one time. a welcome change for many employees, But a return to the office is – in one form or another – inevitable for most companies. With this transition DETERMINING ‘ON-SITE’ NUMBERS and the thought of no longer being able to do so could affect their job satisfaction. What’s more, there will inevitably be health back into commercial premises comes It would be ill-advised for anxieties among many people as long as numerous challenges; in fact, it is likely businesses to transition from remote the virus is still at large across the country. that some business leaders will find to office working in one go. Rather, Speaking openly with employees this process more complicated than employees should be invited back before starting the transition back into when they had to move to complete in smaller groups, starting with just the office would be wise. So too would remote working back in March. one or two days a week in the office be allowing working from home on an SO, WHAT ARE THE KEY QUESTIONS THAT MUST BE ADDRESSED? and gradually building it over time. How many employees should be in the workplace at a time will, again, depend on the size and layout of on-going basis, at least for some of the week. Indeed, we are often told that the “new normal” will see remote working become the de facto model for many MAKING THE WORKPLACE SAFE the space. But the challenge will be understanding which members of organisations – the key will be to find the right balance between when a team

The absolute priority must be staff to have in at the same time. member can work from home and ensuring employees’ safety. No business Smaller teams within the business – when they are needed in the office. should ask its staff to return to the office marketing, finance or sales, for example Changing office hours is another until necessary steps have been taken – ought to be kept together to maximise worthwhile consideration; shifting the to make the risk of anyone catching or the value of them being back in the working day forward or backwards by spreading COVID-19 as low as possible. office. After all, the return to the office is an hour or two will better enable staff to

In many instances, this will require a primarily a way of increasing the ease of avoid rush hour, which could put their physical restructuring of the workplace collaboration and allowing certain tasks mind more at ease, particularly if they are – desks, chairs and storage units might to be completed more effectively than using public transport for their commute. need to be removed, while the layout of when all employees are working remotely. Ultimately, just as the onset the space may also need to be revised. As the transition back into the of the lockdown in March did, the There is pressure on the Government to office begins in the weeks and months decision to move back into bricks cut its two-metre social distancing rules ahead, businesses must be wary not and mortar premises will present in half, until this happens employers must to rush back to ‘normality’. Doing numerous challenges. Businesses be able to ensure staff are kept more so will almost certainly compromise must be mindful of these challenges apart than would usually be the case. the safety of employees – start with and address them diligently.

Businesses should also consider smaller, more conservative numbers People’s safety is the paramount investing in other equipment to of people in the office and then concern. Thereafter come questions protect employees. For example, they slowly increase things from there. around ensuring productivity is optimised might need to install screens between desks, hand sanitiser pumps and clear demarcation on floors to help people MANAGING EMPLOYEES’ CONCERNS and employees’ mental wellbeing is protected. Importantly, all of these issues feed into each other – businesses that keep their distance from one another. Those are some of the main practical can best manage safety, productive

Cleaning practices will need to and strategic questions to address. and staff concerns will be best placed be ramped up significantly in many One of the most important, though, is to smoothly transition into the new cases. Regular deep cleans will be how to manage employees’ concerns. normal. www.knowyourmoney.co.uk essential for minimising risk, while staff ENERGY MANAGER MAGAZINE • JULY/AUGUST 2020

MONITORING & METERING

RINNAI INTRODUCES REMOTE MONITORING FOR HOT WATER DELIVERY CONTINUOUS FLOW SYSTEMS

Rinnai remote monitoring system gives sites total control of hot water delivery – and cuts operational site costs.

Rinnai, the UK leader in continuous flow hot water delivery systems, is introducing, with immediate effect an advanced remote monitoring system which allows instant access and intelligent service and maintenance. This enhanced monitoring system enables the advanced proprietary technology of the the water heating units via Rinnai continuous flow water heaters intuitive user experience. to be transposed to an onsite BMS The system can link up system or I.P via Cloud services. to 6 Rinnai commercial-sized This enables site managers, continuous flow water heaters energy managers, end users and FM with a smart serial hub which professionals to set alarm functions, in turn transposes Rinnai trend data, event handling, temperature data objects via gateway set points, temperature control for technology to be viewed Legionella regimes and many other on open protocol BMS. monitoring capabilities. Alarms can The advanced system be set; functionality can be checked has present day and future – any malfunction can be repaired proofing in mind as the serial by a first-time fix due to enhanced hub and gateway can be remote visibility which in turn will transposed as data objects severely reduce on site down-time. on to a range of communication This new system supports unit and protocols including – BACnet/ IP, systems to run maximum efficiency for BACnet MS/TP, and Modbus RTU. the lifetime of the appliances due to Due to the many proprietary advanced data analytics of temperature data objects communicable from the and combustion set points. water heating systems, preventative If there is a constant supply of gas and even predicative maintenance and water Rinnai hot water heating units regimes can be established. are guaranteed to supply temperature This system has been taken up in accurate hot water in unlimited quantities multiple sites by a global foodservice for all hygiene regimes in all types of sites. chain, utilising the new Rinnai N The new monitoring system series 1300i continuous flow water will integrate Rinnai proprietary heaters. The global chain is also communications onto open protocol focusing this monitoring system BMS, and this is also compatible on predictive maintenance. with touch screen technology to Also available from Rinnai: 24/7 provide localised feedback from technical support; 24/7 product and 12 ENERGY MANAGER MAGAZINE • JULY/AUGUST 2020

spares availability; digital technology aids such as the ‘Help Me Choose’ facility on the www.rinnaiuk.com website. Rinnai manufactures over 2million water heaters every year and as such is at the forefront of creating real advantages for users. Rinnai’s complete range of hot water heating units are available for next day delivery on orders placed before the previous mid-day.

Contact the company direct by calling 01928 531 870 or via email engineer@ rinnaiuk.com or sales@rinnaiuk.com or alternatively use the smart online contact points “Help Me Choose” or “Ask Us a Question”, all held on the website homepage at www.rinnaiuk.com.

STEP BY STEP TO ENERGY EFFICIENCY

Is your business struggling to cope with I f, like the majority of businesses, you need to cut costs as part of your the financial impact of COVID-19? Do you need a fast, effective and painless way of response to the COVID-19 crisis, many of your options are likely to involve making tough decisions. making cost savings? Then you may just But here’s one that doesn’t need to be difficult – taking steps to improve have found it! It’s very likely, says Julian your energy efficiency. Maybe you think Grant of Chauvin Arnoux, that you could this sounds a little like rearranging the deckchairs on the Titanic, but if so, it may make substantial savings on your energy bills with very little effort and investment. be time to think again. Many – probably the majority – of businesses in the UK are surprisingly wasteful in their use of energy, so there are big savings to be made. Follow the steps described in this article and you’ll be well on your way to banking those savings.

STEP 1: GET A PEL

This step, it has to be admitted, involves spending money as you’ll need to hire or buy a portable energy logger (PEL) like the Chauvin Arnoux PEL103. With it you’ll be able to accurately monitor your power consumption and much more, including the level of harmonics in your systems, voltage imbalance and power factor. Furthermore, you’ll be able to record the results over time giving you comprehensive and reliable data about what’s contributing to the energy bills in your business. If this is your first foray into energy monitoring, you’ll probably be tempted to hire a PEL. That’s no bad thing to get a first feel for what it has to offer but bear in mind that energy saving is an ongoing affair, so once you’ve established a few baselines you’ll want to monitor your energy usage regularly to check whether things have changed. It won’t be long, therefore, before having your own PEL becomes more cost effective than paying multiple hire fees, and it’s also likely to be a lot more convenient as the instrument will be to hand whenever you need it.

STEP 2: START MONITORING Having acquired your PEL, decide where to install it – usually this will be in a distribution cabinet – and set it up to monitor the circuits that interest you. Typically, these might be lighting, HVAC and possibly computer systems. Remember that some three-phase PELs, including the PEL103, can be used to monitor three single-phase circuits simultaneously which saves a

lot of time. Set your PEL to make recordings over a period; a day is good, but a full week is better, as interesting things often happen at weekends! Later, you may find it useful to record information over even longer periods, which is another good reason for buying your own PEL.

STEP 3: WHAT HAPPENS OUT OF HOURS? When you’ve got the data from your PEL, the first thing to look for is out of hours usage. How much energy is your business continuing to use after the workers have gone home in the evening and over the weekend? You may be in for a shock – British Gas recently surveyed 6,000 SMEs and discovered that 46% of their electrical energy usage occurred outside normal business hours. Some of this usage is necessary, of course, but a lot isn’t and, armed with reliable information from your PEL, you’ll be able to address this issue – the solution is often no more costly or complicated than installing a few time switches.

STEP 4: IS THE LIGHT RIGHT? Next take a look at the energy you’re using for lighting. Typically, this accounts for around 40% of the energy used in a building so it will repay careful examination. If it looks as if you’re spending too much on lighting – and you’ve eliminated unnecessary out-ofhours usage – it may be time to take a look at your luminaires. Hopefully they’re already low-energy types, but even so you’ll probably be able to make substantial extra savings by switching to the latest LED types. Depending on the type of luminaire, this may involve no more than changing the bulbs, an exercise that will quickly pay for itself.

STEP 5: IS POWER FACTOR A FACTOR? Your PEL will give you information about the power factor of your loads. Most electrical loads consume two “types” of power – active power and reactive power. The active power does useful things – light the lights, turn the motor and so on – while reactive power does nothing useful. But the catch is

that you pay the same for active and reactive power! But where does power factor come in? It simply tells you how much reactive power your loads are consuming. If the power factor is 1.0, they consume no reactive power, but if it’s any lower – 0.9 or 0.8, say – then you’re paying for useless reactive power.

The good news is that it’s possible to ‘correct’ poor power factor, bringing it nearer to 1.0 and reducing the amount of reactive power you pay for. This correction usually takes the form of capacitors fitted near the main distribution board and you may already have them. But, over time, capacitors can lose their capacitance and, of course, the loads on your system may change. As a result, your power factor may be much worse than you think, and reactive power may be costing you a lot of money. Your PEL will tell you!

STEP 6: HARM FROM HARMONICS? Computers, LED lighting, variable speed drives and many other types of load found in modern installations generate harmonics, which are currents at multiples of the supply frequency. The PEL will tell you about the size and order (frequency) of these harmonics. With this information, you’ll know whether harmonics are likely to be a problem and, if so, the information will help you to decide what action to take. Unlike the other factors we’ve looked at, harmonics won’t add much directly to your energy bill, but they can cause many other types of costly problems, like overheated neutral conductors, malfunctioning and premature failure of IT equipment, and excessive vibration of motors - so they’re well worth investigating.

STEP 7: A BIT OFF BALANCE? If you have a three-phase supply, the final step in the preliminary analysis of your PEL data might well be to check whether the voltage is the same for all three phases, and whether it stays that way throughout the whole day and whole week. If it doesn’t, your PEL will be able to help you identify whether the problem is with your energy supplier or whether it is being caused by equipment in your installation, such as poorly distributed large single phase loads and, in these cases, which equipment is causing it. This is particularly important if your business uses three-phase motors, as even modest supply imbalance can cause these to heat up excessively.

STEP 8: PHONE A FRIEND! In this very short article, it’s only been possible to give a few suggestions about how to cut your energy bills by detecting and correcting energy wastage. These suggestions should be enough to get you started, but you’ll find a lot more detailed information on the Chauvin Arnoux UK media channel (www.cauk.tv). And, of course, you can always phone (or email) a friend – the Chauvin Arnoux technical team is at your disposal, and will be happy to help with all of your energy monitoring and energy efficiency enquiries. www.chauvin-arnoux.co.uk

MONITORING & METERING THE DATA YOU NEED TO EFFECTIVELY REPORT ON YOUR ENERGY SAVING TARGETS

The correlation between data and energy saving targets

Reporting on your energy saving monitors the performance of equipment at a For example: an energy manager of a targets is a vital part of any effort high-level and concerns the building as a whole. manufacturing plant notices that packaging has to increase energy efficiency A BAS can automate controls for things like the highest energy consumption of all activities in your business. The process elevators, metering, air-handling units, heat across the plant. That would highlight to the involves collecting and analyzing pumps, lighting systems and more. A newer energy manager that improving the energy large amounts of data to uncover actionable BAS can maximise the energy efficiency of all efficiency of packaging operations is a priority. steps to decrease energy consumption. But how do you cut through the noise to see the trends in your data? the things it controls, as well as monitor fire and flood safety. While a BAS does not generally offer advanced analytics, it can be leveraged 3. REPORTING – GET THE BIGGER PICTURE

Bridging the gap between data and in combination with Energy Management Most organizations have data loggers and understanding is a difficult task. Without Software (EMS) to extract key data for reporting. systems across their commercial buildings a centralized dashboard detailing your When it comes to collecting data over to capture energy usage, performance and commercial building’s energy consumption time, using 15-minute intervals strikes the right consumption data but, instead of filtering and associated costs, meeting energy balance. As an energy manager, you want to the information and refining the most saving targets, reducing energy usage and reduce noise in the data to produce a clear actionable parts, it is all compiled into a improving overall energy efficiency becomes picture of how your building and equipment single large and very complex report. complicated and difficult to navigate. within the building are operating. If you were Instead of a single large and complex So, how do you leverage data to uncover to review data at 10, 5 or even 1-minute report, those organisations could normalize insights and create accurate reports? intervals, you would notice more scattering their data and establish priority areas of focus

To tell your energy story, you need to of the data, making it difficult to understand to understand data trends, leverage the right collect the right data and organize it effectively. what is actually happening in the equipment. metrics and make data-driven decisions.

The key lies in utilizing the right metrics to With 15-minute intervals, energy usage For example, with this approach, an focus on the data that provides reporting patterns can become clearer and more energy manager can compare packaging value. By focusing and reporting on these easily interpreted, making reporting on across all the business’ plants and clearly metrics, you can make data-based decisions energy saving targets more effective. see which are more efficient than others. that help you meet energy saving targets. 1. MONITORING - COLLECTING THE RIGHT DATA 2. ORGANIZING THE DATA - NOT ALL DATA POINTS ARE CREATED EQUAL When it comes to interpreting energy The manager can then review the efficient plants to determine best practices to improve energy consumption consistently across the enterprise in line with energy saving targets.

Good reporting relies on collecting data, it’s important to understand and Efficient reporting is about compiling the real-time, reliable, and accurate data. account for different types of data. Comparing clearest possible picture of your energy usage

Measurement of energy performance total or average energy use in one sector and costs to people at different levels of your across a building is the backbone of any against another will lead to skewed data. business and relies heavily on the ways in meaningful energy reduction strategy. For example, manufacturing plants often which you collect and interpret energy data.

Smart metering and monitoring have long operating hours and heavy machinery If you have multiple sites, comparing tools, for example, are essential for which requires a lot of energy to cool. So, energy consumption increases in complexity both measurement and efficient energy comparing it against a distribution centre based as your organization may be balancing a management. In a single office building, an on total or average energy used will provide an variety of business operations. Normalizing effective metering and monitoring system uneven representation of total energy usage. energy data facilitates effective comparison can often generate an immediate energy It’s imperative that data is normalized to help you to clearly understand your energy saving of 10%, and up to 30% once building in order to interpret it correctly and for consumption patterns and performance operations are enhanced over time. reporting on energy saving targets. across separate business units.

Continuous automatic metering systems Take degree days for instance. Degree days When you’re able to obtain a high-level use dynamic energy dashboards to display are a measure of the severity and duration overview of energy consumption, using the right building operation and energy consumption of cold weather. It’s a vital metric because metrics turns that raw data into insight, giving data. Tables, graphs and images are used extreme outdoor air temperature will require you the ability to make data-driven decisions for to illustrate energy information in ways more energy to stabilize setpoint temperature your business and to take real and consistent that facilitate informed decision-making. in the building. Therefore, to avoid misleading steps towards your energy saving targets. For example, an energy dashboard may statistics, you should also normalize against Once you’ve understood the big picture display that a building’s aeration system active hours and normalized occupancy. view of your energy story, which specific metrics is consuming more energy than it should. Once the data is normalized, you can look at should you focus on to guide your actions?

Once informed of this fact, the operator can it to determine the priority area of focus. Find out by reading our eBook: Understanding reduce energy consumption incrementally What other metrics should you look Energy Management KPIs - Vanity vs. to reach energy saving targets without at in relation to your key performance Authoritative Metrics. https://bit.ly/3cyul1T negatively impacting performance. indicators? Check out our eBook to www.esightenergy.com

A Building Automation System (BAS) find out! https://bit.ly/3cyul1T