www.eua.org.uk
Smarter Energy Solutions
In this issue: • Smart Grids and Smart Cities 2025 • M2M Technology - A Business Opportunity in Disguise • Gas is just Gas or is it?
MEMBERS LIST
Altecnic Ltd Ariston Cotherm Ltd Dimplex UK Limited Gledhill Building Products Ltd Heatrae Sadia Heatrod Elements Limited Honeywell Ltd
Joule UK Ltd Kingspan Hot Water Storage Mannley Cylinders Ltd McDonald Engineers Newark Copper Cylinders Co Ltd OSO Hotwater (UK) Ltd Reliance Water Controls Ltd RM Cylinders
Telford Copper Cylinders Ltd Vaillant Group Ltd Viessman Ltd Worldheat Ltd
A O Smith Water Products Company BV Adey Professional Heating Solutions AmbiRad Ltd Babcock Wanson UK Ltd Baxi Commercial Bosch Thermotechnology UK Ltd
Calor Gas Ltd Cochran Ltd Ecoflam (UK) Ltd Energy Technology and Control Ltd EOGB Energy Products Ltd Ferroli Ltd Gas Fired Products (UK) Ltd GP Burners (CIB) Ltd Hamworthy Heating Ltd Hoval Ltd Ideal Stelrad Group
Johnson & Starley Ltd Lochinvar Ltd MHS Boilers Ltd Mikrofill Systems Ltd Nu-way (Enertech Ltd) Powrmatic Ltd Remeha Commercial Reznor (UK) Ltd Riello Ltd Rinnai UK Ltd Roberts Gordon Europe Ltd
Schwank Ltd Sabien Technology Sentinel Performance Solutions Ltd Stokvis Industrial Boilers (International) Ltd Strebel Ltd Vaillant Group (UK) Ltd Viessmann Ltd Weishaupt (UK) Ltd
A C Wilgar Adey Professional Heating Solutions Alpha Therm Limited Altechnic Anton Industrial Services Ariston Thermo Group Atag Heating UK Ltd Atmos Heating Systems BDR Thermea Group Be Modern Group BEAMA Heating Controls BEAMA Water Treatment BFM Europe Limited Biasi UK Ltd Bosch Thermotechnology Ltd Bowbros Limited British Gas Burley Appliances Limited
Calor Gas Limited Carillion Energy Services Ceramic Fuel Cells Limited Charlton & Jenrick Ltd Crosslee Plc Crystal Fires Limited Daikin Airconditioning UK Ltd Delta Energy & Environment Ltd Domestic & General Group plc E.ON UK Ecuity Consulting LLP EDF Energy Encore Energy Enertek International Ltd Fabdec Ltd Fernox Ferroli Limited Flowgroup plc Fondital Helpline UK Gas Contract Services Ltd Giona UK Ltd Grafton Merchanting GB Graham Group Ltd Grant Engineering (UK) Ltd Grundfos Pumps A/S
Harvey Water Softeners Ltd HETAS Ltd Honeywell, ACS Control Products Ideal Heating Ltd IE-CHP (UK & Eire) Ltd Inspirit Energy Holdings plc InstaGroup Limited Intergas Heating Limited Johnson & Starley Limited Kamco Limited Kane International Ltd Kiwa GASTEC at CRE Lettergold Water Treatment Solutions LLP Logic Certification Ltd Monarch Water Ltd Morgan Lambert Ltd NAPIT Nibe Energy Systems Limited Nirvana Energy Systems, Inc Npower Hometeam Nu-Flame Ltd OFTEC Panasonic Industrial Devices Sales Europe GmbH
Pektron Plc Pump House Pumps Rangemaster Ravenheat Rinnai UK Ltd Robinson Willey Limited ROC Boilers Sentinel Performance Solutions Ltd Sime Ltd Solar Trade Association Spirotech UK Ltd Sunamp Ltd Teddington Appliance Controls Ltd The Electric Heating Company Ltd Thermoserv Ltd Travis Perkins Group UKLPG Vaillant Group Ltd Valor Viessmann Ltd Vokera Limited Widney Leisure Limited Wolseley UK Ltd
Ideal Stelrad Ltd Kudox Ltd
Myson Radiators Quinn Radiators
Zehnder Group UK Ltd
Crane Building Services & Utilities Develop Training Ltd DI UK Ltd DNV GL E.ON Gas Storage UK Ltd EDF Energy Customer Field Services EDF Gas Storage Ltd EDMI Europe Ltd ElectraLink Ltd Electricity Solutions Ltd ELEXON ELGIN Elster Energy Assets Ltd Engage Consulting Enzen Fastflow Group Ltd Ferranti Computer Systems NV Fiorentini UK Limited Fulcrum Fusion Group Ltd Future Energy Group G4S Utility & Outsourcing Services (UK) Ltd
Gas Measurement Instruments Ltd. Gateway Storage Company Ltd Generis Technology Ltd George Fischer Sales Ltd George Wilson Industries Ltd GPS PE Pipe Systems GTC Halite Energy Group Harlaxton Engineering Services Ltd HP Humbly Grove Energy Ltd INEOS Enterprises Ltd Islandmagee Storage Ltd Itron Metering Solutions UK Ltd J Murphy & Sons Limited King Street Energy Landis+Gyr Lightsout Computer Services Ltd Lomax Training Services Lowri Beck Services Ltd Meter Provida Ltd Mike Stratton & Associates Ltd Morland Utilities Ltd Morrison Utility Services
National Grid plc Northern Energy Connections Ltd Northern Gas Networks Ltd P N Daly Ltd PLCS Ltd Power Plus Communications AG Providor Ltd Radius Systems Ltd Sarco Stopper Ltd ScottishPower Energy Management Ltd Secure Meters (UK) Ltd Sensus UK Siemens Silver Spring Networks UK & Ireland SSE Hornsea Ltd Statoil (UK) Ltd Storengy UK Ltd The Co-operative Energy Tuffentech Services Ltd UCML (Utilities Connections Management Ltd) Utility Customer Service Management Ltd Utility Innovations Solutions Limited WRc plc
ACV UK Ltd Advance Appliances
ICOM
Energy Association
AMEC Group Ltd Amey AVK UK LIMITED Balfour Beatty Burdens Utilities Bureau Veritas Buss Metering Services Limited ByBox Calvin Capital Ltd Capita Carillion Utility Services Centrica Storage Ltd CERRO EMS CEVA Logistics Limited Clancy Docwra Ltd CNG Services Ltd COMEX 2000 UK LTD (Utilities & Communications)
Corporate
Gemserv
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WINTER 2014-15
WELCOME
OUTPUT
Welcome evolution of both energy networks and cities over the coming decades. At the intersection of these trends sits the potential of the Internet of Things to revolutionise industry and transform business models. The IoT defines a host of new devices and services which will impact the way cities and grids are evolving - smart metering is gaining momentum, ever cheaper and smaller sensors and chips are possible making the business case for intelligence easier to demonstrate.
to the Winter issue of OUTPUT EUA has launched its Manifesto which addresses the energy trilemma and calls upon whoever forms the next Government to invest to achieve improved security of supply, improve energy efficiency to reduce emissions and curb fuel bills and to recognise the role of energy in people’s health and well-being. The manifesto covers 21 specific asks of any future Government and in his column this issue, EUA President Vic Tuffen lists the actions that EUA will be lobbying all parties for over the weeks and months ahead. Also, in this issue Silver Spring Networks consider trends that are driving the
Vodafone also contribute with a feature on Machine to Machine (M2M) technologies, asking whether pioneers can really get ahead of the game using the latest technology. Engagement with Government is a key part of EUA’s remit and we are delighted to have contribution from Jonathan Reynolds MP, Shadow Minister for Energy and Climate Change in the ‘View from the House’ column. Enjoy the issue.
Caroline Taylor Editor, OUTPUT
Contents 2 4 6 8 9 18
Regulars
News from the divisions: Utility Networks HHIC ICOM, HWA, MARC Presidents Column View from the House Leading Voice
ICOM
Energy Association
10 13 16
EUA President Vic Tuffen (Tuffentech Ltd) EUA Vice President/Treasurer Ian Hughes (Kingspan Hot Water Storage) Chief Executive Mike Foster
Features Smart Grids and Smart Cities 2025 M2M Technology A Business Opportunity in Disguise Gas is just Gas or is it?
HHIC Director Roger Webb ICOM Director Ross Anderson ………………………….................... Editor/Enquiries Caroline Taylor caroline@eua.org.uk 01926 513762 Energy & Utilities Alliance (EUA) Camden House Warwick Road Kenilworth Warwickshire CV8 1TH Design and Publishing Mike Hill Graphics, Stratford upon Avon
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UTILITY NETWORKS NEWS
Utility Networks News Managing the transition to the Smart era
Gas 2014
As last year’s Gas 2013 event emphasised, natural gas is at the very heart of helping solve the ‘energy trilemma’. So one year on Gas 2014 reviewed what the industry needs to do to sustain this positive momentum and to capitalise on the commercial, regulatory and technical leadership inherent in the sector and where it should be doing better.
Sponsored by:
The conference theme, Sustaining Sector Momentum, offered a packed programme including:- How the RIIO challenge is being met in key areas, network reliability – understanding asset health and criticality, the challenges and opportunities of a future gas grid, what the industry needs to do to reposition itself, making innovation work leveraging global innovation and enabling an unconventional future. The event showcased a topical supply chain exhibition, providing an ideal forum for networking and continued learning.
Sponsored by:
The 11th Utility Metering seminar took place in September 2014. With mass roll-out of smart meters fast approaching there was no lack of subject matter for the seminar programme. This popular annual event heard from those involved at the sharp end of system installation, testing meter manufacturers bringing together important players from the equipment supply chain, government, regulators and representative bodies. The seminar explored how companies are managing risk throughout the transition phase, reviewed the latest technical developments, suggested how efficient co-ordination during enduring roll-out could be achieved, outlined how the industry is working towards effective deployment and Smart Energy GB updated on the latest plans for engaging the British public in the smart programme.
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• 12 High Level Industry Speakers • 120 Delegates • 10 Sector Exhibiting Companies
Metering Technology, Metering Services and Data & Communications Management Group Chairmen: Jeff Cooper – Elster (Metering Technology) Dave Gregson, Calvin Asset Management (Metering Services) The member groups continue to support the development of the Smart Metering Equipment Specification (SMETS), GB companion Specification (GBCS) and the Communication Hub Technical Specification (CHTS). Work streams include the Security Specification and the Consumer Product Accreditation (CPA) Smart Metering Key Infrastructure (SMKI). EUA also has representation via members on the Zigbee and DLMS protocol committees. EUA has recently been invited to participate in the UK Metering Forum (UKMF) meetings, to present the Gas Meter manufacturers views to the group. The UKMF is a trade association open to owners and operators (managing agents) of both gas and electricity metering assets, trading as Meter Services Providers (MSPs). It is primarily
concerned with interfacing with UK and European legal metrology and regulation bodies, other relevant Industry bodies, other trade associations, and with representation on standards bodies – i.e. political and technical matters. It differs from, but is in many ways complementary to, the Association of Meter Operators which deals with market issues relating to MSPs' Meter Operation role. Due to the exit of its current Chairmen further to a change in job, the Data & Communications Management Group is currently looking to appoint a new Chairman. If you are interested in this role please speak to Gary Cottrell.
Meeting: Joint meeting of the Metering Services, Metering Technology and Data and Communications Groups, Tuesday 10 February, EUA, Camden House, Kenilworth
EUA Contact: Gary Cottrell 01926 513764 gary@eua.org.uk
Groups
To conclude the day delegates enjoyed a full, very popular guided tour of the venue Manchester United Football Club!
WINTER 2014-15
Key step towards building smart metering confidence as SMDA appoints operator Work is now underway to establish an independent assurance scheme for smart metering equipment following the appointment of Gemserv as the Smart Metering Device Assurance Scheme Operator (SMDA SO) by Energy UK, BEAMA, the Community of Meter Asset Providers (CMAP) and Energy and Utilities Alliance (EUA). The scheme will provide assurance to consumers, manufacturers, financers and energy suppliers that smart metering equipment will work effectively in a smart environment. Once metering devices which have met the testing requirements are installed, stakeholders will have confidence that they will provide the data required and that the technology will work regardless of which supplier a consumer chooses or switches to in the future.
Network Engineering & Equipment Group Chairman: Andy Vine, Crane Ltd OFGEM presented at Septembers NEEG meeting, detailing the networks first year RIIO-GD1 performance and provided an opportunity for attendees to ask some challenging questions of the regulator and around the networks performance.
Update
In the December meeting National Grid presented to the group on a variety of topics including their first year RIIO performance, ‘innovation working together’ and an update on the mains replacement programme. The Energy and Innovation Centre (EIC) also contributed with a presentation on ‘Innovations Route to Market’ which was well received. Multi-utility, water and shale gas have been identified as topics for future meetings with invitations also extended to Scotia Gas Networks, Wales & West Utilities and the Health & Safety Executive. The group will invite National Grid, OFGEM and EIC back.
Although some of the details are still to be finalised, resources are now being mobilised with a focus on a proportionate and robust scheme being up and running as soon as feasibly possible.
Key areas of testing The scheme seeks to cover two key areas of testing - interoperability and interchangeability – both of which will play an important role in the success of the smart metering rollout. In basic terms, interoperability is the ability of all devices to provide the necessary flow of information between smart meters and the business systems of energy suppliers, network operators and other authorised service users. Interchangeability is the ability of devices to interface and be compatible with other devices of a different manufacturer in a smart metering system in the consumers’ premises. Devices should be able to be interchanged by energy suppliers, regardless of who was involved in the original installation or who may have replaced it/them at a later stage.
Initial steps The development of test specifications and appointment of test houses are
Work is underway to move forward potential strategic partnerships with bodies that complement the work of the group – GISG, Pipeline Industry Guild (PIG), National Joint Utilities Group (NJUG). A ‘memorandum of understanding’ has been signed with the Energy & Innovation Centre.
Meeting:
Group meeting Thursday 5 February with presentations from Northern Gas Networks, GISG, HHIC, ICOM, EUA, Camden House, Kenilworth
EUA Contact: Peter Day 01926 513759 peter@eua.org.uk
Gas Storage Operators Group
the first key steps in establishing the scheme and Gemserv will work closely with its partners TUV SUD and Adeptica on those stages. Work is already underway to establish a Testing Technical Committee (TTC) made up of testing and energy industry experts – which will develop test scenarios and specifications. Test houses will then be appointed after a competitive bidding process. A key issue for the TTC and test houses will be to develop the scope of test scenarios and specifications which will be used to approve meters. A riskbased approach, deploying a predefined number of scripts, will be used to ensure assurance is achieved efficiently. The scheme will ensure that testing charges are competitive and that supply meets demand so that no ‘bottlenecks’ occur which could delay the smart metering rollout plans of energy suppliers. A website will also be developed within the coming months which will include information such as a list of all SMDA member organisations and a list of accredited devices once testing has begun. The site will provide regular news updates on the scheme’s progress.
is doing. The working groups are focussed on HSE issues, security, safety, and general technical issues along with sharing best practice. The group is busy with three main group meetings having taken place in London in September, November and December along with an HSE/Technical Working Group meeting and a GSOG Cheshire Facilities Managers meeting. Representatives from DECC and Ofgem attend all main group meetings, along with invited presenters from National Grid, Waters Wye, CEPA and Gerald Eve. After several years of lobbying, HMRC finally decided to say no to any capital allowances for gas storage facilities. The Taxation Working Group will continue to share experiences with all group members.
Chairman: Roddy Monroe, Centrica Storage
Meeting:
The main areas of campaign for GSOG members remain the increase in commercial rates, the Gas Transmission Charging Review, potential issues around gas quality and the work CEER
EUA Contact:
GSOG Meeting Friday 6 February, London Vanessa Webster 01926 513763 vanessa@eua.org.uk 3
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HHIC NEWS
HHICNews Roger Webb, Director HHIC... To me it’s becoming a slightly overused commercial buzzword. It seems no industry is immune from the allure of having a ‘smart’ product. Kettles, windows, light bulbs, plugs, even toothpaste all have a ‘smart’ version. And whilst every product has a consumer out there just bursting to buy it, actually consumers are most interested in smart products when they help them save money, or more easily control their household appliances. This has transported ‘smart’ advanced heating controls from hobby tech, to high street tech in a very short space of time, which is not only good for the heating industry, it’s also the smart thing to do for consumer’s bills and carbon reduction. The heating industry must utilise this opportunity and the advancements in technology to help drive the take up of advanced heating controls. The Government need to assist this, by recognising the huge part domestic heating plays in the UK’s energy usage - a message HHIC delivers on our members behalf regularly. For too long energy efficiency has been seen by Government as installing insulation and double glazing or changing light bulbs, and these measures will help reduce energy consumption; however controlling the amount of heat being created in the first place is vital.
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What does SMAR actually don't believe there is a 'lack of interest' from the consumer perhaps just a lack of informed choice. Which is why, HHIC have teamed up with BEAMA to launch the ‘Control Your Home’ campaign, aimed at reaching out to those 11 million homes. The ‘Control Your Home’ campaign is a way for the heating industry to work together to help consumers reduce their heating bills through better control of their heating system. We need to show how a few simple controls can both reduce their bills and improve their comfort. Increasing the numbers of households with heating controls will be driven to a great extent by the rate at which households replace their existing boilers, which is currently 5% of homes annually. Evidence indicates that installers, rather than domestic consumers, frequently make decisions about which central heating controls to install and where to install them.
Yet 11 million homes in the UK do not currently have even the minimum heating control requirements - a room thermostat and thermostatic radiator valves.
Therefore ensuring installers are fully aware of heating control products, and fully equipped to pass that knowledge on, is essential. The supporting information available via the campaign will help installers to communicate with their customers about the benefit of fitting controls, whether they are installing a new system, doing a boiler service or other visit. Raising general awareness with consumers is also essential, as is the need to convey that heating controls can be fitted at any time.
Recent research at Salford University shows that adding these controls to a conventional central heating system reduces the running costs of that system by 40%. So why are we not installing them? Research suggests a lack of interest and knowledge. I
More information about the campaign can be found at www.controlyourhome.org.uk, together with a downloadable leaflet for installers to give to their customers. The site also provides details of how companies can get involved in the campaign.
Aside from raising awareness of the benefits of the minimum heating controls, this campaign aids a wider discussion with both installers and consumers on the additional benefits of advanced - or smart depending upon your preference controls. If consumer awareness grows it will certainly translate into demand. But let’s not be complacent, explaining how different types of controls work to the consumer is complex, particularly with new developments occurring such as the introduction of weather compensation controls. On that basis industry need to make it as easy as possible for the installer to effectively communicate with consumers. So that’s the carrot - what about the stick? Since 2002, Building Regulations have required the installation of heating controls with systems fitted in new homes (Part L1a) and replacement boilers fitted in existing homes (Part L1b). There is also guidance from the Energy Savings Trust on commissioning central heating systems to maximise energy saving. However, the UK Government makes no requirement to implement system efficiency and energy saving. Installers are only mandated to ensure that the system works properly and the householder knows how to use it. To comply with this they can simply “provide a suitable set of operating and maintenance instructions aimed at achieving economy in the use of fuel and power in terms that householders can understand.” Could the Government do more to regulate and therefore raise the importance of ‘proper’ heating controls? Could they encourage take up by including advanced controls in schemes like the Green Deal Home Improvement Fund? I for one think they could.
WINTER 2014-15
RT mean to you? MicroCHP- A smart solution With the approaching election, the potential for power shortages combined with rising energy bills are a political hot potato, and lower carbon emissions have become the Holy Grail for the Government in home heating; as they push ahead with plans to achieve an 80% reduction in CO2 by 2050. There is no doubt that in order to achieve this, a combination of savings and innovation is needed, but the conditions to facilitate this must be right. Products like microCHP can help the Government deliver on carbon reduction. The technology is attractive to homeowners, small businesses and the Government alike, as it operates at times of peak demand, helping to reduce pressure on the grid through electricity export, and as the electricity is produced at the point of use it means that there is minimal loss during transportation making the system extremely efficient. MicroCHP provides a dual energy low carbon solution for generating heat and power for the domestic market. It typically uses natural gas or in off grid areas, LPG as the input fuel, and is an efficient replacement for, or complement to, a gas boiler. Because of the obvious benefits the Government is incentivising microCHP via the Feed-In Tariff scheme. The scheme is currently under review, HHIC together with the Sustainable Energy Association and the CHPA (now the Association of Decentralised Energy) have been preparing an appropriate response, part of our ‘ask’ is for a more suitable microCHP tariff to be introduced. The specifics of the tariff we will be seeking will depend upon the outcome of the detailed
analysis the combined industry is currently undertaking, looking at the costs and performance of the technologies available. It is imperative that the Government establishes the correct tariff for microCHP as it presents an ideal opportunity to encourage homeowners to embrace this technology. As we continue to read about possible power shortages within the UK, and the annual threat of an unkind winter, this type of technology can help make up the shortfall. The added benefit is the relatively low investment cost for the Government, and the potential short timescale to start production of locally and efficiently produced electricity. To achieve economies of scale at a manufacturing level and thus reduce costs to consumers, hundreds of thousands of pounds needs to be invested, yet manufacturers are understandably reluctant to make this level of investment until market demand increases. This is where the Government and industry need to start to work together more closely. An effective and affordable Feed-In Tariff, needs to be formulated that will provide the necessary support to create a viable market in the early deployment stage. The Japanese Government have been very successful with their electrical generation by giving support to microCHP manufacturers, and Germany is also the latest country to start a programme for the introduction of microCHP units. Cheaper energy and a potential saving of up to 2.5 tonnes of carbon dioxide per household per annum – microCHP may just be the sought after Holy Grail of home heating.
Remember, remember the 5th of November Arranging our Parliamentary Reception for November 5th was actually not intentional. However the principle of not forgetting is, in hindsight quite fitting; although I want to assure you, no treason was committed to achieve the single biggest thing that has happened to the heating industry- the compulsory condensing boiler. Over 120 people attended the event, to celebrate the 10-year anniversary of the heating evolution, held at the House of Lords and sponsored by Baxi, the Energy Saving Trust, Johnson and Starley, Kane International and Worcester Bosch. The event brought together key industry players, all of whom continue to play a pivotal role in the development of the heating industry. Guest speaker, Parliamentary Under Secretary of State at the Department of Energy and Climate Change, Amber Rudd MP used her speech to look forward, highlighting what can be achieved when industry and Government work together. We shouldn’t be shy when it comes to recognising our achievements. There will always be challenges to overcome – reducing emissions, developing green technologies are just two, but as all of the speakers at the event highlighted if we keep talking, negotiating, advising, and guiding we can find solutions that deliver on Government policies to the benefit of all. Looking to the future our research project Pathways II - Part two of an evidence based study, into options to reduce the carbon intensity of heating- is in motion. We anticipate some initial results later this year, which we intend to use as a guide, to inform the Government of a smart practical pathway to carbon reduction.
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ICOM NEWS
ICOM
Energy Association The development of EU regulations and standards is a drawn out process. ICOM gets involved early on the process to present industry’s views to the relevant authorities. EU Regulations & Directives
The development of EU Regulations and Directives has a large political element and therefore, what is technically achievable or desired can be overruled by the politics. The process involves a number of revised drafts, each revision taking into consideration the comments from the consultations, before publishing a final draft. The Regulatory Committee, made up of a representative from each member state, then votes on the final draft and these votes are weighted depending on
the country, fortunately, the UK is one of the highest weighted members, along with France and Germany. One of the major EU regulations affecting the heating industry is the Ecodesign Directive, which sets the mandatory ecological requirements for over 40 product categories. The UK representative for Ecodesign is from the Department of Energy and Climate Change (DECC). ICOM has a very good working relationship with the DECC officials, and our views are well represented at the regulatory committee, although sometimes, the UK Government policy may override the industry position. For other EU regulations, the UK is represented by DEFRA or BIS, where once again we have formed a good relationship with the officials who represent us at the regulatory committees. ICOM are members of EHI (Association of the European Heating Industries), which
gives us another avenue for presenting our member’s views to the EC. Located within a stone’s throw from the European Parliament, EHI are a lobbying organisation and their job is to collate the views of manufacturers across Europe and then present “position papers” on specific regulations and directives to the desk officers, who are the technical experts supporting the MEPs. Once an initial draft of a regulation or directive is published by the
Influencing directives and EC, EHI forms an expert group and develops a position paper to send to the EC. Usually a second draft is published by the EC, giving a further opportunity to amend and/or confirm our position. There may be successive drafts but ultimately the final draft goes to the Regulatory Committee for vote. During this whole process, the EHI lobbying aspect comes into play and they
MARC NEWS
MARC help the industry get ‘smart’ with system design One key point of difference between alternative heat source choices and traditional gas boilers is that the system temperature is often set at much lower temperatures. This can have significant impact on the suitability and performance of a heating system if the right supporting products are not used.
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Historically there has been a misconception that radiators are less energy efficient than some other heat emitters when used with low water temperature systems. In fact modern high performance steel panel radiators work well with low water temperatures, making them an ideal choice for ecoconscious developers and home owners. This has been driven by the introduction of
modern insulation materials and standards, bringing significant reduction in heat losses and, therefore it may no longer be necessary to heat water to 80°C in order to achieve a room temperature of 20°C.
this project. It is an opportunity to demonstrate the suitability of radiators with low temperature heating systems, and also assist the installer with designing the correct heating system.
This message has been at the centre of MARC’s activity in 2014; the humble radiator has been warming homes for over 150 years, with technology evolving in line with demand and legislation. Over the coming months MARC - together with BEAMA - will be looking at the creation of low temperature heating guide software, which will accompany the BRE; Design of low temperature domestic heating systems - A guide for system design and installers, published in 2013.
Not forgetting that radiators have undergone something of a renaissance in the last decade or so. In line with people's aspirations to create beautiful and unique homes that match their taste and lifestyle, the radiator has not been forgotten. Indeed, options in material, colour and design have meant it has become something of a work of art in itself.
The software will be developed by a working group and will assist the industry when designing low temperature heating systems, further details will be announced in 2015. MARC is delighted to be leading on
For membership enquiries, please contact; Caroline Taylor, 01926 513762, caroline@eua.org.uk
WINTER 2014-15 have regular meetings with the member states delegations, desk officers and MEPs and put over the member’s views in an attempt to get support for the regulatory vote as well as ensure that the desk officer and MEPs really understand the technicalities and impact of the regulation. As members of EHI, ICOM have also been involved in the lobbying process, where we have been part of the team from EHI
purely technical and does not tend to have a political element. There are generally two routes – one for British standards and the other for European standards. British standards are written by BSI and there are a number of committees that look after standards in different areas of technology and processes. The committees are made up of a number of experts in the specific field and they meet regularly to develop the standard. When a standard is written by a committee, it goes out for public consultation. Once the comments have been received and the standard amended where necessary, the standard is published.
These comments are then considered and the standard amended where necessary. A final draft is published for final comment and once that process is complete, the new standard is published. The development of standards may take just as long as an EU regulation but the major difference is that technical experts have control rather than the politicians.
European (EN) standards are initially written by CEN, the European equivalent of BSI and then put out for public consultation with the standards body of each Member State. At this point the relevant BSI committee reviews the document and submits any comments back to CEN.
The process of developing new standards or regulations may be time consuming, but by being involved in so many aspects of the process, ICOM is able to give our members the early warning of the content as well as being able to have an input into the writing of the document.
standards, d regulations meeting a delegation from a Member State. Overall, the development of EU regulations and standards is a lengthy and political process, and if all goes well, takes the best part of two years, although some of the more difficult regulations take longer.
Standards On the other hand, when it comes to developing a new standard, the process is
HWA NEWS Knowledge is indeed power, but without information there is no knowledge. For the domestic hot water industry information about cylinder heat loss is top of the agenda. In 2009 the Energy Saving Trust (EST) published a report which investigated the insitu performance of boilers (Energy Saving Trust, 2009). As part of this report the heat loss from hot water cylinders was investigated. This investigation was carried out using data calculated using the government’s standard assessment procedure (SAP) 2009, table 3. A subsequent report published by EST in 2011 further investigated the heat loss of 35 hot water cylinders (Energy Saving Trust, 2011). The published heat loss data varied from 230kWh/year to 2910kWh/year. The aforementioned publications have created an interest in investigating the effects of service length on hot water cylinder performance both in heat loss and beneficial heat transfer. Subsequently HWA have launched a study; Investigation of Energy Savings from Replacement of Hot Water Cylinders. The study will compare the effectiveness of insulation between a brand new cylinder
Knowledge is power HWA Cylinder heat loss study and a cylinder in service. The service life may vary from 1 to 25 years. It will also investigate the effect of service life on a heat exchanger within hot water cylinders. This will primarily focus on coiled tube heat exchangers for indirect hot water cylinders. A secondary focus will be placed on the performance of immersion heaters within direct cylinders.
As two additional lines of investigation, work will be undertaken to identify “real life” heat loss where water temperature in a new cylinder is set using a programmer, and cylinder is installed in a standard airing cupboard and compared to the standard test. Heat will be supplied from the internal heat exchanger, with the external heat source being an inline electric water heater. The heat loss will be calculated for the system where all pipework outside the airing cupboard is well insulated and the test being performed twice. Once with the pipe work inside the cupboard insulated and once with the insulation removed.
HWA hopes that the study will trigger a change, by demonstrating how much could be saved by buying and installing a modern insulated hot water cylinder. The findings will be used to encourage government to include hot water storage in energy efficiency schemes. Incentive schemes such and the Green Deal and ECO should be encouraging cylinder replacement, and this report will provide data to support this. The study is due to commence in early 2015, lasting approximately six months. For further information please contact; Isaac Occhipinti, External Affairs Manager isaac@eua.org.uk , 01926 513742.
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PRESIDENTS COLUMN
PRESIDENT’S
COLUMN
EUA Manifesto My presidency of EUA comes at a critical time with regard to politics, as we enter an election year, and our industry is facing unprecedented challenges. Consumers want energy to be affordable. As a society, we need our supplies to be secure and reliable. And on a global scale, we require our energy to be clean, green and lowcarbon, too– the so called energy trilemma. The cost of the investment programme to achieve this is huge. No other industry is facing the challenge of the energy sector. In 2013 the energy industry invested £11.6 billion and a further £110 billion needs to be invested over the next ten years to build and renew the infrastructure, power stations, wires and pipes to keep the lights on, homes warm and supply power for British business.
EUA With rising prices, tough carbon-reduction targets, and mounting political uncertainty ahead of the election, energy has become a crucial issue for Government. EUA recognises that each political party needs to find solutions to energy sustainability, affordability and security issues.
Therefore, EUA has launched its Manifesto which addresses the energy trilemma and calls upon whoever forms the next Government to invest to achieve improved security of supply, improve energy efficiency to reduce emissions and curb fuel bills and to recognise the role of energy in people’s health and well-being. The Manifesto covers 21 specific asks of any future Government and EUA will be lobbying all parties over the weeks and months ahead. With a membership of 239 companies across the utility networks sector, domestic and commercial heating and hotwater industry, EUA is in a strong position to help any incoming Government deliver an energy strategy that works. Bringing this back to the focus of my Presidential year, a skilled workforce is a major factor in attracting investment. Now more than ever our industry needs to be concentrating on attracting talent into the sector and counteracting skills shortages and the anticipated shortfall of well-trained apprentices or 8 graduates.
IsaacOccipiriti, EUA, pictured handing the Manifesto to Ed Milliband, MP.
There are some excellent examples out there of companies offering and developing apprenticeships, training schemes and graduate opportunities. I shall be contacting member companies in the coming months to learn more about some of the great work they are doing and to see what lessons can be learnt from these success stories. I look forward to speaking with you.
EUA’s list of actions are:
Recognise the role of energy in people’s health and well-being
1 Make CO alarms mandatory in all new UK buildings and fund research into the health impacts of non-fatal levels of CO exposure. 2 Build 200,000 new homes each year. 3 Establish joint industry government roundtables to ensure all new and refurbished buildings incorporate the most energy efficient technology. 4 Ensure all Government policies reflect the impact of energy on health and wellbeing. 5 Apply a consistent and cost effective Permit Scheme for streetworks and consult on the establishment of a Street Works Commissioner for England and Wales. 6 Help to develop the market for gaspowered commercial vehicles to improve air quality in UK cities. 7 Pay the Winter Fuel Allowance in the summer months to enable oil customers to take advantage of lower costs.
Invest to achieve improved security of supply
1 Review the case for strategic investment in long term gas storage for the UK. 2 Develop stringent regulations to safeguard the environment and allow the production of shale gas. 3 Incentivise the production and use of green gas including BioSNG. 4 Extend the gas grid by a minimum of 20,000 properties each year. 5 Encourage the uptake of high quality apprenticeships in the sector and its supply chain.
Improve energy efficiency to reduce emissions and cut fuel bills
1 Commit to a universal smart meter roll out by 2020. 2 Include all heating controls in any future energy efficiency programmes. 3 Regulate to ensure that all new build properties are renewable ready. 4 Introduce a domestic and non-domestic scrappage scheme for boilers and hot water tanks. 5 Review the SAP mechanism to provide flexibility to incorporate new technologies as they are developed. 6 Remove unnecessary red tape for heating installers – namely MCS and PAS 2030 and adopt current industry standards to certify installers when implementing government policy. 7 Commit to achieve EPC rating E in the private rented sector by 2020. 8 Give greater priority to energy efficiency programmes for non-domestic properties. 9 Replace levies on electricity bills that fund energy policies directly with taxpayer funded schemes. Vic Tuffen is EUA’s President for the term May 2014 – May 2015. He established Tuffentech Services in 2008 providing consultancy and technical solutions to the Energy and Utility sector. Today he is actively involved at committee level for both IGEM and the EUA whom he represents at the DECC Smart Metering group for Consumer Engagement and Roll Out.
WINTER 2014-15
VIEW FROM THE HOUSE
Jonathan Reynolds MP Shadow Minister for Energy and Climate Change It was nearly eighteen months ago that I became Shadow Minister for Energy and Climate Change and I can honestly say, it has been one of the most exciting and eye opening periods of my career in Parliament. As probably is the case for most people, I had a general idea about where the energy which comes into my home came from, whether it be from a power station on the Lancashire coast or from a wind farm in the Pennines near to where I live. But what I didn’t really know is how much I actually used in my home and more importantly, how words like kilowatt hours or calorific value translate into money in my pocket. Recently, I had a smart meter installed and one of the key advantages which I saw was that it will bring an end to estimated billing – which is one of the major areas where energy companies repeatedly fail their customers. At present over 85% of complaints to energy companies are about billing, but Smart Meters will help stop this. And as a Labour MP, I am extremely keen to see the end of people being charged more for their energy if they use prepayment metering. The interoperability of smart meters between prepayment and direct debit is essential and this I am sure will be warmly received by the public. Another benefit that smart meters and technology bring is a greater awareness of how we interact with the energy we use in the home. If, like me you have three children (and a fourth on the way), knowing where and how your energy is
View
used could help you save money. I recently had a PassivLiving heating system installed in my home and it is fantastic that I can monitor my energy usage on a weekly and daily basis via my IPad. Although smart technology is in an embryonic stage at the moment, I believe that in the future, it has potential to open up new ways of how we interact with energy and how we can help keep our personal energy costs down.
from the
House
But for all of the benefits that smart technology can bring, it is important to ensure that the costs of the installation do not outweigh the consumer benefits that it can bring, which is why the Labour focus for the roll-out will always be on the consumer. With this in mind, I am conscious that there are some pressing issues facing the smart community right now, with the key one being the smart meter roll-out. The most obvious concern is the costs associated with this roll-out, a programme with a bigger budget than the London 2012 Olympics. The Government has recently said that the mass roll-out will be delayed until 2016 due to technical issues associated with data communications. This delay is bound to put pressure on the roll-out schedule but it is clear that the Government isn’t working with providers to get these issues resolved and ensure value for money. Another key concern relates to the management of the programme. Ultimately, the Government is fully accountable for the roll-out but there is real concern across industry that there is a significant lack of leadership from the Government, especially when it comes to
getting issues relating to the roll-out resolved. A recent National Audit Office report last year laid bare the challenge that up to 30% of properties are not suitable for the Home Network Signal. I have to ask the Ministers why we appear no closer to a resolution to this fundamental problem. With this in mind, I have very real concerns that the Government has failed to listen to the anxieties that have been raised by a number of groups and organisations regarding the roll-out, and is failing to take the roll-out as seriously as it should. This isn’t good for anyone involved in the rollout of the programme and ultimately, for the consumer. But on a more optimistic note, I do believe that smart technology can provide a real opportunity to hand power back to the consumer rather than it being in the hands of the energy companies. It is opening up new boundaries for consumers, and as a Labour Government, we would ensure that they will receive most benefit from this technology.
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SMART GRIDS AND SMART CITIES 2025
service automation, perhaps the notable absences are of greater interest – the internet or personal mobile phones for example, which have transformed many aspects of modern life. This stylized popcorn view of the world perhaps never aimed for 100% accuracy, but it illustrates the challenges of predicting the future.
Brian McGuigan, European Commercial Director for Smart Cities
10
21st October 2015 rapidly approaches, a date when we can expect to witness the proliferation of flying cars, self lacing shoes and hoverboards, at least if Back to the Future II is to be believed. While this film managed several accurate predictions such as the proliferation of video conferencing and
That being said, we believe that several trends already visible, are driving the evolution of both Energy networks and Cities, and these will underpin a major transformation over the coming decades.
The World of Infrastructure in 2025
Let’s start by looking at the external pressures being brought to bear on our energy and municipal infrastructure in 2015:
l The changing role of energy consumers – they are now often producers and distributors of energy, and thanks to the world of internet enabled services, far more demanding and less patient customers
OUTPUT
l Government drivers for green generation – in the UK there is already a proliferation of more wind and solar powered generation, which puts pressure on the grid in ways never imagined when it was first built decades ago l The fluctuation in oil prices is having a real impact on the direction of gas flows l Wholesale energy prices are becoming more volatile due to reduced capacity margins and reliance on Russian gas l New technologies are everywhere – electric vehicles, microgeneration, LED lighting, and a multitude of low cost sensors
l Global population is growing at an alarming rate, and is congregating in cities. This directly contrasts with the need to produce less CO2, causing strain on infrastructure such as transport and health
l The unprecedented threat from terrorists, both in the real and the cyber worlds. Where these two worlds meet there is a special threat which needs to be dealt with in new ways.
The IoT Revolution
Internet of Things is not a new term, but has recently become the buzzword to define a host of new devices and services.
WINTER 2014-15
FEATURE
Smart Grids and Smart Cities 2025 Semiconductors Morgan Stanley created the diagram (right) which neatly outlines the 3 factors driving and defining the IoT industry.
It illustrates the combination of 3 aspects: Moore’s law, which states that exponential improvements in microprocessors see them become smaller, cheaper and more powerful at an alarming rate. This drives development in 2 directions. At one end we all now carry devices more powerful than the most powerful super computer of 1985, and at the other it has become cost effective to enable connectivity of millions of new devices to the internet. The lesser known Metcalfe’s law, which states that the value of a network increases exponentially as users join. This can be witnessed across social media or in the uptake of new messaging apps, and is key to the success of residential Demand Response programs. Finally, big data - the gathering and real time analysis of the resultant data is exponentially increasing the value of the data from all these new networked devices by combining and processing it. At the intersection of these trends sits the potential of IoT to revolutionise a range of industries and transform business models.
Technology developments are also going to impact the way cities and grids evolve over the next 5 years – smart metering has taken off around the globe, ever cheaper and smaller sensors and chips are now possible
Telecom Moore’s Law
Internet of Things
Metcalfe’s Law
Big Data Laws (Moore’s law) making the business case for intelligence much easier to demonstrate.
And thanks to the likes of Google and Amazon, society is finally switching on to the idea of big data – modern, intelligent ways of mashing/meshing different data types from sensors/citizens/the internet/city and grid back offices to develop useful insights and applications will really drive change in the area of grids and cities. Some of the ways we can expect to see this materialize in 2025 are:
Microgrids for Cities
Many cities are now looking at performing some of the roles previously the preserve the energy industry – producing their own energy from renewable sources, transporting it and managing consumption for maximum efficiency. By 2025 these will be more widely adopted and at greater scale. This introduces challenges for the existing power networks, which were built around one way transport of energy from large power stations over long distances, to homes and businesses.
Software
Using City Infrastructure to Balance the Grid
Demand Response (DR) as a way to reduce consumption is not new – places like Oklahoma in the USA have been running programmes for some time now using the turn down of air conditioning in customers’ homes to reduce the requirement to switch on peaking plant at times of high demand, and of course National Grid has been able use commercial rate incentives combined with automatic control systems to call on large industrial plant to turn down at such times for many years. By 2025 providers will leverage new technology and connected devices to build a far greater array of DR products which will be sold to both consumers and utilities. Some areas which have not yet been explored include the use of city infrastructure such as:
l Use of cities’ estates such as street lighting/council offices/other council owned infrastructure for DR schemes,
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SMART GRIDS AND SMART CITIES 2025
l Turning down microgeneration and using grid storage/increasing consumption (what about electric vehicles as a large battery?) to balance the electrical properties of the grid at times of fluctuating demand
l Meshing of all 3 utilities - using waste water to generate power, ground source heat pumps to deliver municipal heat services, storage heating or EV batteries at a council level to respond to spikes in demand.
City Resilience
Some councils are currently looking at the IoT and sensor data as a way to enable better incident response. For example, one council in the UK is integrating its intelligent street lighting control systems with its blue light emergency response centre – if there’s an incident in a particular area all of the street lights can be turned up to 150% output until the incident is resolved. The possible use cases for these sorts of data and control combinations are endless, and we expect to see many pop up over the coming years.
Carbon Neutrality
Almost all cities have stated intentions to reduce their carbon footprint over the coming years (Copenhagen will be carbon neutral by 2025!). Many systems will contribute to achieving these targets, including transport, energy, waste, logistics, infrastructure maintenance and many more - connected devices in all of these areas will be a key enabler for the transition.
Organisational/Structural Changes Required 12
In the UK, Utilities have been completely disaggregated both from councils, and within their own supply chain -
generation/production, distribution and supply are all separate in energy, and water is also moving in the same direction. Budgets are tight, and austerity means that councils are routinely dealing with 60% or more reductions in annual opex allowances. Policy needs to enable innovation in such a complex and disaggregated environment.
Councils need to find ways to pull together siloed business functions - truly intelligent cities can’t just look at lighting or transport or health in isolation, as the benefits to society will come from bringing all of these areas together and enabling them to talk to each other. This will drive significant sharing of infrastructure assets, alongside sensor data across multiple departments and services. Utility regulation needs to consider the competing drivers between different roles in the industry. For example truly integrated demand response in energy will never happen until the commercial interests of suppliers are aligned with those of DNO’s and generators. There are many smart grid and smart city applications which are regularly discussed in the media, but nobody really knows what the most likely ones are to have taken off by 2025. Both cities and utilities need to really analyse the business case for a couple of “headpin” applications, like adaptive street lighting , smart parking, smart metering or Substation monitoring – those that demonstrate a business case in their own right should be implemented now, together with a business process and technology framework, which positions the council/utility to take advantage of the new opportunities for innovation in the very near future.
Technology Approach to Get There
Technology will play a huge part in the development of the smart city and the smart grid. Many low cost sensor types are out in the
market now, and this industry is booming, from intelligent street lights, traffic and pedestrian cameras, parking bay sensors, to flood monitors, medical alerting sensors and chips that tell you when your bin is full. Councils and utilities need to take a planned platform approach to the delivery of these sensors and the uses of the data that they provide, otherwise maintaining multiple proprietary platforms, networks and applications will be a major headache and cost.
In order to do this, open standards should be delivered across the entire stack, from the software application and its integration into back end systems, through the big data platform that integrates all sensor data, data from the web, data from other systems and elsewhere, down to the sensor networking and connectivity platforms. The Android model makes the most sense in this environment. Connect to any compliant device type, have an open, intelligent platform and operating system to manage the data and the devices, and enable multiple applications to be built on top. Processing sensor data at its source will quickly become very important, increasing the speed and efficiency of analytics and software applications.
Summary
Intelligent cities and smart grids are possible now – positioning for them doesn’t need to be a leap of faith, rather an intelligent approach to technology and structural organization that then allows the benefits to develop and blossom.
WINTER 2014-15
M2M TECHNOLOGY FEATURE
M2M Technology A business opportunity in disguise? and it is transforming people’s lives and businesses for the better.
Vodafone Head of Smart Metering, Wayne Flanagan The energy and utilities sector has arrived at a critical moment in its history; regulatory frameworks designed to reduce carbon emissions and drive up energy efficiency are about to be enforced. Could this be the opportunity the industry needs to transform ageing infrastructure and address current and future needs?
It is easy to forget that 120 years ago the sector did not even exist – and hard to imagine that electricity was then a radical new technology. Throughout the 20th century rapid development and public investment saw the sector transform the lives of people around the world, but much of the technology and the infrastructure introduced during that time is still being used.
Demand for energy never stops growing, but the pressure is now on energy suppliers to meet this need in a more sustainable way. In the quest for sustainability, the EU has committed to reducing carbon emissions by 20 per cent on 1990 levels by 2020(1), with the US also aiming to reduce carbon emissions by 26 per cent from 2005 levels by 2025(2). Meanwhile, the UK government requires that by 2020 every home and small business in
Great Britain must be fitted with a smart meter(3) that provides real-time feedback on energy usage and cost.
UK energy suppliers are now at a crossroads. They can stand still and wait until 2016 when the government’s common standards are expected to come into force and the nationwide rollout of smart meters begins. Or they can get ahead of the game and join the pioneers already finding efficiencies, reducing carbon emissions by implementing smart meters which use the latest machine-tomachine (M2M) technology.
What is M2M?
Machine to machine (M2M) communication is an innovative technology that is enabling everything to become connected. M2M is often talked about as part of the ‘Internet of Things’ or ‘Internet of Everything’ revolution
Using a combination of embedded SIM cards, secure global mobile networks and fixed line connections data can be wirelessly transmitted anywhere in the world. Today M2M technology can be found inside cars, white goods, shipping containers, security cameras, TVs, industrial machinery, drinks coolers and much more. Almost anything can be connected. These previously ‘dumb’ assets are now able to communicate with each other over wired or wireless connections. As well as ‘talking’ to each other they are also able to send data and receive commands from a central management system, autonomously and often in real time. For businesses, this opens up a whole new world of opportunities to increase business agility and efficiency.
By automating certain processes like checking energy meters in people’s homes, reporting machine faults or operating status, employees are free to focus on what humans do best: thinking creatively, innovating and growing their businesses. Used intelligently, M2M can offer a number of benefits for the energy and utilities industry and beyond. Data gained from M2M enables managers and engineers to observe and influence every part of their business down to the smallest detail. They
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M2M TECHNOLOGY
Optimising retail stock management
The benefits of energy data management
Taking the hassle out of parking
Measureable savings on energy costs P
SUPERMARKET
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Saving fuel and cutting emissions
Making bins smarter can then refine processes and optimise supply chains, cutting out unnecessary costs and providing a better service to their customers. The use of M2M technology has already had a significant impact in several key industries. Automotive, healthcare, consumer goods and energy and utilities are all adopting M2M for a wide range of uses.
According to the Vodafone M2M Adoption Barometer 2014, 62 per cent of energy and utilities companies are expected to have an M2M deployment in place by next year(4), no doubt as a consequence of regulatory need. The 30 per cent of energy and utilities companies that had an M2M implementation in place as of last year(5),
Securing your site
Digging deep, avoiding costly construction cable damage 14
Parking
King’s Road
however, have been quick to see the opportunity that M2M presents.
And by embracing the prospect of turning devices and appliances into intelligently connected assets, they are opening up a world of possibilities for how companies are run, grow and make customers happy – before their competitors get the edge.
Getting closer to the customer
Utilities companies need clear differentiation to stand out in a fiercely competitive marketplace. Primarily, they need to lower distribution costs and improve the experience for the customer, while
Proactive service & maintenance alerts finding more ways to conserve natural energy resources and reduce carbon emissions. Can M2M create differentiation, conserve more energy and reduce customer churn?
In Vodafone’s 2014 M2M Adoption Barometer, we identified smart meters and smart grids as the most popular choice for energy and utilities businesses planning their first M2M initiatives. Smart meters, for example, are being deployed innovatively across a number of industry sectors to monitor consumables, drive transparency and forge closer customer relationships.
In the UK, energy suppliers such as British Gas, Npower, E.ON and First Utility, are already installing smart meters for residential and business customers, with British Gas and Npower Giving new insights as using Vodafone SIMs to to product performance transmit data via Vodafone’s mobile network(6). The smart meters give customers realtime data on their energy consumption and spend, while the suppliers can generate accurate bills, adjust
Keeping plant assets planted in their location
WINTER 2014-15
Calling time on estimated meter readings
tariffs and provide customers with recommendations on alternative products that could save them money.
The suppliers also benefit from the opportunity to ensure their internal systems are robust enough to handle smart meter data and their engineers are experienced enough to help customers get the best out of smart metering before the majority of competitors have trialled or installed the technology.
Equally, engineering companies, which consume thousands of litres of liquid gas in a day, can use smart meters to monitor supplies in real-time and relay the readings to their utility suppliers. Should gas reserves reach a minimum level, the supplier can automatically receive notification of an order to release the supply accordingly, giving the engineering company the transparency to make informed decisions about their consumption and where to cap it. In both instances, the supplier has created operational and environmental efficiencies by minimising the need to send out fleets of staff to read meters.
The data opportunity
With M2M, utilities companies also have an opportunity to roll out connectivity more
Keeping the lights on... saving money on street light management
The connected car for safer, more convenient transport
FEATURE
Making advertising more personalised
The connected, smarter home
Keeping the traffic flowing, smart routing, reduced fuel use effectively and drive greater value from deployments, including new opportunities to extract, share, and capitalise on data to predict usage and better manage supply.
As consumption of more sustainable technologies such as solar panelling increases, energy companies need to find a way to manage the incoming supply from consumers. And as more consumers adopt electric cars, suppliers will also need to find a way to meet the higher demand created by hybrid and electric vehicles powering up at charging stations around the country. The more intelligently organisations use real time data gathered through M2M technology to predict and manage usage, the better they can match demand to available supply.
Additionally, the ability to predict consumer behaviour leads to opportunities to create innovative new services for customers, while still helping them reduce the size of their bills.
A strong new M2M business proposition – for example, might be an intelligent thermostat that can be remotely managed via an app to ensure heating is never wasted yet the family always returns to a warm and cosy home. Not only does this support reduced energy consumption, but it is an innovative way to delight customers.
Be part of the M2M revolution
It is always better to be ready for tomorrow. Rather than waiting to be pushed, energy and utilities companies have an opportunity to proactively embrace the business benefits that M2M technology presents. And by doing so have a way to stand out for the right reasons, regain the trust and loyalty of consumers and find smarter ways to manage the supply of valuable natural resources.
1. http://ec.europa.eu/clima/policies/g-gas/index_en.htm 2. http://www.whitehouse.gov/the-press-office/2014/11/11/fact-sheet-us-china-joint-announcement-climate-change-and-clean-energy-c 3. https://www.gov.uk/government/policies/helping-households-to-cut-their-energy-bills/supporting-pages/smart-meters 4. https://m2m.vodafone.com/cs/m2m/insight_news/2014-07-02-the-m2m-adoption-barometer-2014 5. https://m2m.vodafone.com/cs/m2m/insight_news/2014-07-02-the-m2m-adoption-barometer-2014 6. http://m2m.vodafone.com/cs/m2m/insight_news/case-study/npower-smart-meters-shine-a-light-on-energy-use.jsp
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GAS IS JUST GAS - OR IS IT?
OUTPUT
CASE STUDY
The Oban Trial
Gas is just gas ...or is it? Roger Webb, Director of the Heating and Hotwater Industry Council. The gas we use today is changing. Less than 50% of the gas in our network is now provided by North Sea gas production. Consequently our import infrastructure has increased fivefold over the past decade, and although the UK’s gas demand decreased in the second quarter of 2014 – possibly reflecting warmer temperatures - the move to include imported natural gas (both pipeline and liquefied natural gas or LNG) and alternative sources of gas, such as shale and bio gas, will be a continuing trend.
As a result we will have a network transporting different types of gas, with different compositions, from different places, entering the system at different times. This affects the stability of gas composition, which has existed across the UK since North Sea gas was first brought ashore in the sixties.
UK Gas Quality Gas entering the UK transmission and distribution grid has to meet certain specifications under Gas Safety Management Regulations (GSMR). Under these regulations, a variety of different parameters and limits are used to describe
With growing LNG importation, the geographical mixing and distribution of LNG in some areas of the UK grid may lead to swings in the quality parameters of the gas supply – even though these will be within the limits specified by GSMR. Put simply a house in Harrow could be receiving different gas to a house in Harrogate. Whilst this doesn’t affect our ability to heat our homes or cook our meals, there has been some concern that it may affect appliances. In 2013 the annual Gas Network Innovation Competition (NIC) awarded funding to Scotia Gas Networks, for a project to establish whether gas which sits outside the British standards could be used safely and efficiently. The project – Opening up the Gas Market - is based in Oban a resort town on the South West coast of Scotland, which has its own isolated gas network Following a period of very thorough surveying and testing, and subject to approval by HSE, a new mix of LNG has been injected into Oban’s grid for a 12 month investigation period. This will allow a detailed assessment of the possible approaches which the UK could adopt to accommodate such changes in gas quality on a national basis. Innovation such as this is integral to the future development of the UK’s energy networks; and demonstrates how gas suppliers and appliance manufacturers are reacting to the new set of challenges presented by the change to our gas supply.
Setting the standard fo It’s a truth generally acknowledged that when customers are provided with independent and trusted information about a product they will want to make an informed purchase. The Energy Saving Trust is committed to making sure all heating and hot water products not only meet higher standard requirements but are also independently verified. This is why we want to introduce a new standard at a time when we are seeing the rise of the ‘informed consumer’ who has access to more information than ever before and will research products before buying them.
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We help manufacturers to promote their most efficient products so their customers can use less energy and cut their energy bills. In our latest consumer attitudes poll the UK Pulse we found 73% of consumers are worried about the cost of heating their homes. But one measure householders can
take to reduce their heating bill is to upgrade their hot water cylinder to a newer model which saves £20 to £30 a year on an annual heating bill. These new cylinders are factory insulated and help to keep hot water at the right temperature for longer so they play an important role in supplying homeowners with readily available hot water. It is simple measures like this that go a long way to cutting your bills and using less energy.
A new Energy Saving Trust Endorsed Product standard Almost half (49% ) of households in the UK now have a hot water cylinder so we are kick-starting a new Endorsed Product standard for this product to complement our already existing range of Product Standards for other heating products: boilers, controls, chemical inhibitors and water treatment products. This will provide consumers and the supply chain with more information
about products that will help them improve the efficiency of their heating system and improve the comfort of their home. As the trusted and independent experts in energy efficiency, we work with manufacturers to establish, through consultation, an industry-wide product performance standard for their product category. This typically has two phases: the development of product performance criteria followed by endorsement. The EST Endorsed Product brandmark highlights the products that have achieved this independent endorsement and helps them to build consumer acceptance and trust. These Endorsed Products are also displayed on our online product register tool, EST Online, which is a directory for both consumers and businesses to find energy saving products, and a platform for manufacturers to present them. The ErP (energy-related products) regulation and energy labelling for hot water
WINTER 2014-15 what may be generally referred to as “gas quality”. These GSMR limits have been established over many years in order to ensure that gas combustion in all types of domestic appliance, and in commercial and industrial applications, is safe and efficient. In December 2005, the UK government recognised concerns that UK gas reserves would decline in the near future, leading to the increase in imports now taking place. After an extensive study on future UK gas quality involving many industry stakeholders, the then Department of Trade and Industry (DTI) determined that the current quality specifications should not change until 2020 at the earliest, as the cost of accommodating a broader gas quality range would be too high. The government has recently re-affirmed their position. With the growth of imports, we now have a variety of sources for our supply and this changes the composition of the gas
entering the UK grid. In some cases, for example with imported LNG, to ensure that GSMR gas quality specifications are met, nitrogen ballasting can be used to regulate
the quality of the distributed gas. In other cases, gas sources of different compositions can be blended to achieve this. Using measures such as ballasting and blending different gas supplies, the UK is managing the transition to incorporate different sources of gas into the grid so that gas quality is maintained in future. However the possible benefit of adjusting the GSMR limits to allow a greater diversity of supply in future is now being recognised.
European activity A similar scenario to that in the UK is now emerging in Europe and there are moves across the EU to widen the range of gases being put into the transmission system, to enable an open and attractive European energy market. The European Commission began a project in 2007 to harmonise gas quality in the EU, in cooperation with the European Association for the Streamlining of Energy Exchange (EASEE-gas), Gas Infrastructure Europe (GIE) and all other stakeholders. The project seeks to ensure that every country or transmission system in the EU will accept the same range of gas quality parameters. To that end, the European Commission issued a mandate (M400) to the European Committee for Standardisation (CEN); The purpose of this mandate is to invite CEN to draw up standards for gas quality
or hot water cylinders cylinders is being introduced in the UK in September 2015 and ErP requires all products to meet a minimum efficiency standard. It will apply to all vented and unvented hot water cylinders and domestic hot water products including instantaneous water heaters, small water heaters, wallmounted cylinders, domestic hot water heat pumps, solar cylinders and indirect water heaters. Energy Saving Trust’s Endorsed Product standards enable companies whose products exceed the minimum requirements to highlight these products and their improved performance to householders and the supply chain. The EST website reached approximately six million visitors in the last year and we are ideally placed to communicate with consumers and the supply chain to improve education and raise awareness about the new energy label for hot water cylinders, helping them to understand the benefits of choosing a more efficient product for the home.
Benefits of an independent endorsement Energy Saving Trust Endorsed Product standards are designed to highlight products that exceed minimum requirements; provide information on how hot water cylinders can be used more efficiently and enable consumers to make informed choices about the products they choose to buy. The standards also provide manufacturers with a platform to present and showcase their most efficient products and communicate their benefits to a wider audience. The benefits of an independent endorsement are:
parameters that are the broadest possible within reasonable costs. This will ensure that gas from a wide variety of sources can be accepted and will help to maintain “security of supply” throughout the EU. The Heating and Hotwater Industry council (HHIC) - together with its members - has been working at both UK and European level on measures such as standards development which will support these changes, whilst ensuring the continued safe, reliable and cost effective supply of gas to UK homes. In 2014, following the publication of a draft standard, HHIC, represented the UK domestic heating industry at a European Commission Workshop on Gas Quality. The workshop was well attended, with over 150 representatives from all sectors of the gas chain attending to express their views on new moves to "harmonise" gas quality across the EU through this new "H-Gas" standard. HHIC also worked closely with the Association of the European Heating Industry (EHI) to gather information to better inform the Commission of the factors to consider in relation to the standard. Through this workshop the Commission were made fully aware of the concerns of all gas users on the proposed European standard and its implications– although all present agreed on the need for the gas industry to continue to work together on the issue of future security of supply. Discussion on the development of the standard and its future implications is continuing, both in Europe and the UK, and HHIC will maintain close involvement as this work progresses.
ENERGY SAVING TRUST • Our Endorsed Product logo highlights that products have been endorsed by an independent organisation trusted for its energy saving advice Our expertise in providing trusted advice about energy efficiency is growing every day because competitive pricing is not the only deciding factor for consumers, and independent endorsement now has an even larger role to play. Whether we communicate directly with consumers or through our work with governments, business and many others, our aim is to help everyone save money on their fuel bills, have warmer, cosier homes, use water more sustainably and reduce carbon emissions.
• Competitive advantage by differentiating your products • Commercial and marketing benefits in terms of the potential to increase product sales Tom Lock is Certification Manager for • EST Online acts as the ‘go-to’ searchable Energy Efficiency at the Energy Saving resource for consumers and businesses Trust. to find trusted and accurate information about energy efficient products.
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LEADING VOICE
strategy
time
Leading
voice
business
people
performance
background
personal
opinion
speak growth words
comment
viewpoint feedback
answers This issue Output Magazine talks to Ernie MacDonald, Managing Director of Fernox
Fernox is a leading manufacturer of chemical water treatment. A well-known, trusted and reliable brand providing professional installers and heating engineers with both domestic and commercial water treatment solutions, as well as leading filter technology. Fernox products are sold via merchants and distributors.
Fernox are part of Alent PLC with offices and manufacturing plants throughout the world and a head office located in Woking, Surrey. Fernox products are manufactured in the UK and in other parts of the EU.
About Ernie
Ernie has been in the Water Treatment Industry for over 30 years initially working in the laboratory at an international Industrial and Commercial Water Treatment business. He progressed his career via technical sales before joining Fernox as Sales Director and later becoming General Manager. His career has provided a wealth of knowledge about a wide range of systems, the issues and challenges encountered, as well as the appropriate water treatment solutions. The applications he’s dealt with over the years vary from oil refineries and steel works right through to domestic systems, which are the cornerstone of the Fernox business. 18
Joining Fernox in 1999 Ernie managed the UK Sales team, being promoted several years later to run the overall business. Fernox was predominantly a UK centric company, however over the intervening 15 years the business has developed and expanded geographically throughout the rest of Europe, to the Americas and Asia. Ernie is particularly proud of being part of the team that has achieved this growth and lead this recognised success story.
The organisation
From its inception, Fernox has invested time and expertise in innovation, which has helped to shape the landscape of the water treatment industry. Research and development is a core part and ongoing function of the company’s daily business. Fernox benefits from a worldwide network of the industry’s largest, purpose built, inhouse research and development facilities and a team of 58 dedicated scientists. This breadth of knowledge and experience is unrivalled in the industry, which means they are uniquely placed to invent, adapt and improve the product line. There is a real pioneering spirit and culture at Fernox and it is one of which Ernie is very proud. It’s not simply a focus on new product development - an ethos of constant improvement means also looking at established products and making enhancements to improve its offering. Over time, the product range has developed and improved and has achieved other notable successes. Every Fernox product is formulated and packaged in an ecologically responsible way in order to
lower the environmental impact of the company's products by not only increasing their efficacy, but also by developing more concentrated products which reduce the amount of packaging. Independent research, verified by the Carbon Trust confirms the gas saving capabilities of Fernox Protector F1 and Cleaner F3 when used in combination to clean and treat a system can reduce fuel consumption by up to 15% every time a room is heated. Another milestone in Fernox portfolio includes the development of the award winning TF1 filter range.
Ernie believes that empowering and supporting colleagues is fundamental to his role as General Manager. Every business relies upon its people to succeed – they are its greatest asset. It is also important that individual team members fully understand
WINTER 2014-15 the business strategy and where their role and contribution fits into the bigger picture. It’s also vital to ensure they have the resources and skills to deliver what is expected of them. His motto is: ‘It’s never enough,’ and by this he means as soon as you think you have achieved what you set out to do – there is always a new goal to strive towards.
The majority of the company’s innovation is driven by market and customer need. Fernox has an Installer’s Club, designed to advise, educate and reward customers. Members also provide an excellent ‘sounding board’ for current and future needs. Fernox has a large team of scientists and technicians across a variety of disciplines who are dedicated to the development of new products. They also have access to additional scientific expertise and resource within the overall Alent organisation. Typically the company launches a number of new products per annum and in Quarter 1 2015, will be launching the Fernox TF1 Delta Filter – an in-line filter specifically developed for commercial applications and markets.
Challenges
The main challenge facing the company is to manufacture best-in-class products to provide appropriate solutions to match customers' needs. There are also a number of legislative changes on the horizon including GHS (Global Harmonisation System) and CLP (Content, Labelling and Packaging) as well as changes to biocides, which will involve a huge undertaking on the part of manufacturers, like Fernox, to update product formulations and packaging in order to comply and meet the legislation implementation deadline. Current market conditions are positive, supported by the increasing awareness of the need to use water treatment and the associated benefits. The majority of boilers are now being fitted on existing systems and globally there is a rise in the use of condensing technology. This is driving greater use of cleaning and protection solutions including the installation of a system filter. In addition, Fernox envisages that gas boilers will continue to be the foundation for the domestic heating market.
Looking to the future, Fernox has a range of new products in the development and testing phase whilst working on the next landmark innovation. After celebrating its 50th anniversary in 2014, 2015 is shaping up to be another interesting year. Fernox has been the market leader for half a century, and Ernie is sure the company’s ceaseless drive for the advancement of chemical water treatment will ensure continued success for the next 50 years. We would like to thank Ernie MacDonald for his input to Output!
Plastic fantastic: UK company shows you can be green and safe
An innovative Oxfordshire company is improving safety at street works, construction sites and events, while helping contractors to fulfil their environmental responsibilities. Oxford Plastic Systems Ltd’s modular road plates are anti-slip crossing ramps that can be placed on highways to cover trenches, reduce traffic delay and ensure safe passage for vehicles and pedestrians. Road plates are vital in the utilities, highways, infrastructure, construction and event industries – and commonly constructed from steel. Oxford Plastic Systems’ products are different because they are made from composite materials. Tested to a vehicle weight of 44 tonnes, the road plates are every bit as strong and durable as their steel counterparts – and much easier and safer to deploy. According to Business Development Director Peter Creighton, the benefits of Oxford Plastic Systems’ road plates are myriad. “Our aim was to create road plates that have a lower impact on the environment without compromising on safety,” he said. “In using composite materials we have been able to engineer other major benefits into our design, including ease of use. Unlike steel models, our road plates weigh just 44kg each, meaning they are easily lifted by two people and installed in minutes, eliminating the need for heavy lifting equipment. As well as this, they are easy to store and transport.” Oxford Plastic Systems’ road plates have an integral flexible edge made from a PVC
compound, which dampens the sound of vehicles crossing and therefore makes them ideal for works in residential areas. This flexibility can also compensate for cambers in the road. Heavy-duty linking pieces lock the product together, while a drop-pin system increases stability. With their moulded anti-slip surface the road plates are safe for pedestrians too. Thanks to the polymer material from which the road plates are fabricated, they are robust and long-lasting and, unlike steel road plates, not subject to rust or vulnerable to theft. Contractors investing in the road plates may enhance their green credentials through Oxford Plastic Systems’ refurbishment service, further extending the lifespan of the products. Peter said: “With increasing pressure for contractors, local authorities and event organisers to show sustainability in their projects, using Oxford Plastic Systems’ environmentally responsible road plates is yet another way to lessen their impact on the world.” Founded in 1985 as a trade moulding company that focuses on recycled plastic, Oxford Plastic Systems Ltd now distributes its groundbreaking products to more than 20 countries. Thanks to the company’s extensive experience in plastics manufacturing, the team is able to provide trade moulding services as well as in-house product design. For more information visit www.oxfordplastics.com or contact Peter Creighton on 01608 678888.
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OUTPUT
LOGISTICS
Logistics – the behind the scenes facilitator to the energy sector
customer. Be they a corporate company or an individual, delivering good customer service is paramount, especially at a time when good-will towards the energy sector is lacking. When a fault is reported, a fast response allows for an equally fast repair, something all customers will appreciate. Through working with RWE nPower and the roll out of its smart meter technology. Smart logistics company ByBox has seen the benefits of how a wide distribution and collection network can radically improve the speed with which these meters can be installed and customers serviced, providing a real benefit to its business along the way. Slow delivery of parts or labour across the country leads to wasted time which quickly builds up, damaging customer perception and costing money. It makes no sense to maintain a system that limits an engineer’s efficiency when a logistics partner can map out their time in order to maximise it.
Mark Garritt, Managing Director, ByBox
The energy sector is one of the most visible and scrutinised industries in the UK, playing a vital role in keeping the nation’s businesses running smoothly on a daily basis. Even a small glitch in operations can wreak havoc up and down the country. Keeping an energy company up and running is a truly mammoth logistical undertaking. From an engineer in Newcastle collecting a consignment of smart meters to install, to delivering parts to London to fit new cabling, to dealing with a power loss in Cornwall; energy providers have to deal with multiple demands simultaneously across huge geographical areas and there is no room for error or respite.
and businesses by the end of 2020. This is no mean feat to achieve so ensuring a 24 hour, technologically advanced support network is of more importance than ever.
Energy companies are one of the UK’s greatest lifelines, but what is the backbone supporting them? It’s smart logistics companies operating in the background dispatching parts, tools and engineers 24 hours a day, 365 days a year to lockers across the country. If the logistics providers to the energy sector were to suddenly stop operating for just a week, or indeed even a day, parts of the UK would quite literally switch off. An energy company is only as efficient as the logistics network it distributes its parts through. Without this support network, it is impossible to coordinate efforts nationwide.
The benefits to such a network are bountiful. The first is also the most obvious: a happy
One of the major issues faced by energy companies at present is coordinating the installation of smart meters across the country. The FT reports that 53 million electricity and smart meters will be 20 installed across 30 million homes
The most efficient way of distributing the engineers and tools necessary to complete this roll out is through fully tracking the supply chain in real time. Smart logistics providers are able to track, trace and route these parts through intelligent software, for example ByBox’s Thinventory™ technology. This allows them to provide energy companies with a real time update on location, saving on both time and money.
A logistics network should not just be efficient but convenient. Good providers will ensure that an engineer has to travel on average no more than 3 miles from their home or workplace to collect smart meters and other equipment to reduce travel time. The best logistics companies will deliver these parts to lockers overnight and pre8am, so that engineers can make multiple collections in one go; creating room for extra jobs in their day. Such cost saving measures are crucial when considering the value of what is out ‘in the field’. This is not just in terms of employees and parts, but also the logistics network itself, made up of a vast array of different supply methods. After all, what is the point of having a multi-million pound supply-chain if it isn’t then operated to that full potential? The logistics question should be front of mind for the energy sector. It isn’t just about being able to make repairs quickly and keep customers happy. It has a wider implication for the running of the business as a whole and how money is invested into the areas that matter, so it should be a crucial consideration in every business decision.
2015 Events Calendar March 4 May 14 June 4
Late June TBC Sept 10
November 4
*Utility Street Works, Cavendish Conference Centre, London W1G
**EUA/IGEM Awards Lunch, The Hilton on Park Lane, London **ICOM Luncheon, RAF Club, London
*Utility Asset Management
*Utility Metering, Heart of England Conference Centre, Fillongley
*Gas 2015, F1 Conference Centre, Grove, Oxfordshire
For information on attending, speaking, sponsoring or exhibiting at any of the above events, please contact: *Vanessa Webster e: vanessa@eua.org.uk or t: 01926 513763 or **Natalie Flay e: natalie@eua.org.uk or t: 01926 513741
2015
NOMINATION FORM I wish to make a nomination for the 2015 Gas Industry Awards for the category indicated below (please place a tick in the appropriate box and use a separate form for each nomination) Manager of the Year
Gas Industry Leadership
Gas Industry Innovation Award
Company of the Year
Gas Industry Safety Award
Energy Efficiency
Engineer of the Year
Young Person’s Achievement
Customer Service Award
INDIVIDUAL OR COMPANY BEING NOMINATED Name______________________________________________________________ Dr/Mr/Mrs/Ms/Other ______________________ Title, Decorations _____________________________________ Qualifications ___________________________________________ Company and Address _________________________________________________________________________________________ _______________________________________________________________________________ Post Code___________________ Telephone _______________________ Fax ____________________________ Email _____________________________________
REASONS FOR NOMINATION – Up to thirty words to form the basis of the citation ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________
FOUR BULLET POINTS DETAILING ACHIEVEMENTS OR OTHER CRITERIA FOR ASSESSMENT A __________________________________________________________________________________________________________ B __________________________________________________________________________________________________________ C __________________________________________________________________________________________________________ D __________________________________________________________________________________________________________
Other supporting information to assist the Judges to reach a decision ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________ ___________________________________________________________________________
(please continue on a separate sheet, if necessary)
NOMINATOR: Name _____________________________________________________ Title ____________________________________________ Address _____________________________________________________________________________________________________ Postcode ________________ Telephone* _______________________ Email* __________________________________________ Context in which Nominee is known _____________________________________________________________________________
Signature ________________________________________________________ Date _______________
* This information will be used to contact nominators so please provide direct contact information Please send completed forms to: Gas Industry Awards 2015, Institution of Gas Engineers and Managers, IGEM House, High Street, Kegworth, Derbyshire, DE74 2DA marked “Awards Nomination - Confidential” E-mail address: gasawards@igem.org.uk CLOSING DATE FOR NOMINATIONS TO BE RECEIVED: Friday 27th February 2015 A copy of the Award Scheme Rules and Notes for Guidance is available on the IGEM Website: www.igem.org.uk or on request by e-mail to gasawards@igem.org.uk Tel: 0844 375 4436 Institution of Gas Engineers and Managers, IGEM House, High Street Kegworth, DE74 2DA Registered Charity No 214011
2015 NOMINATIONS
NOW OPEN Download your nomination form at www.gasindustryawards.com Closing date for entries 27 Feb 2015
2015 CATEGORIES Organised by:
Manager of the Year
Innovation
Engineer of the Year
Energy Efficiency
Leadership Award
Company of the Year
Safety Award
Customer Service
Young Person’s Achievement