Utility Business Summer 2013 by Energy and Utilities Alliance (EUA)

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UTILITY BUSINESS SUMMER 2013

THE DIVISIONAL MAGAZINE FROM EUA UTILITY NETWORKS

LOW CARBON ENERGY SOLUTIONS

I S S U E

F E A T U R E :

PLUS

Coverage of the 2013 Gas Industry Awards

In this issue:

• Developments in the Biomethane Industry

• Customer Led Network Revolution

• Building a renewables industry

Utility Business Summer 2013

How do you get 600 million cubic feet of gas per day from ship to shore?

Think Murphy.

LNG isn’t just a fuel of the future. It’s already here. Murphy has completed the fast-track design of the first LNG dockside Regasification Port in the United Kingdom. In just 12 months from conception to completion, we planned, site-prepared, constructed and commissioned the GasPort on schedule for the first ever shipment of Liquefied Natural Gas to Teesside. In fact, Murphy has an enviable track record in the design, construction and maintenance of major cross country and urban pipelines, above ground installations and compressor

stations – often in difficult and challenging conditions. For more than 60 years, Murphy has been building and maintaining the infrastructure of the nation. We continue to break new ground with the design and construction of high-profile projects across a range of key industries. From national tunnelling, power and rail projects to major water and wastewater contracts, pipelines, and process plant construction; with Murphy, the thinking is always as important as the delivery.

Breathing life into infrastructure

For deeper thinking visit www.murphygroup.co.uk

Energy & Utilities Alliance Utility Networks Division Director: David Jones davidjones@eua.org.uk Administrator: Ana Ray ana@eua.org.uk

01926 513760

01926 513761

Marketing & Communications: Caroline Taylor 01926 513762 caroline@eua.org.uk

Welcome

from your editor With an announcement from Government that smart metering roll-out will be delayed by 12 months to 2015, our Data & Communications seminar in June was appropriately timed to consider the impact of this delay - the conclusion being that the decision was not unexpected and would certainly allow for a more comprehensive testing and trialling period. See coverage of the seminar in this issue as well as a useful update on EUA’s continuing participation in the working groups - UN News pages.

Manager - Events, GSOG: Vanessa Webster 01926 513763 vanessa@eua.org.uk

As part of our Low Carbon Energy Solutions issue we have comment from Renewable UK, the leading wind & marine energy association.

Manager: Gary Cottrell gary@eua.org.uk

With the first Green Gas Certificates now issued, former EUA president, John Baldwin, provides an update on developments in the biomethane industry and we hear from the UK’s biggest smart grid project, a £54 million LCNF project involving 14,000 homes and businesses, mostly in the North East and Yorkshire, which has recently published its interim trial results.

01926 513764

=================================== Chairmen Utility Networks Board: Vic Tuffen (Tuffentech Services Ltd)

Last, but definitely not least, see all the winners at this year’s Gas Industry awards, EUA and IGEM’s prestigious, annual celebration of success, achievement and innovation in the gas industry. Congratulations to all our member companies who made the shortlist and won awards. I really hope you enjoy this issue. If you have any news to share regarding developments in your own company for the next issue, please do drop me a line.

Network Engineering & Equipment Group Andy Vine (Crane Building Services & Utilities) Metering Services Group Dave Gregson (Calvin Asset Management) Metering Technology Jeff Cooper (Elster Metering)

Caroline Taylor, Editor caroline@eua.org.uk

In this issue… 7

Gas Storage Operators Group Roddy Monroe (Centrica Storage)

Features

Data & Communications Management Group Mike Buss (Sensus Conservation Solutions)

Data & Communications for Smart Metering

Building an industry - RenewableUK

===================================

Developments in the UK Biomethane Industry

Customer Led Network Revolution

Gas Industry Awards 2013

Editor/Enquiries Caroline Taylor caroline@eua.org.uk 01926 513762 ISSN Number 1359-9836 Energy and Utilities Alliance Camden House, Warwick Road, Kenilworth, Warwickshire CV8 1TH Tel: 01926 513765 Fax: 01926 857474 www.eua.org.uk

Visit the blog at www.utility-business.org

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THE DIVISIONAL MAGAZINE FROM EUA UTILITY NETWORKS

WELCOME FROM YOUR EDITOR // CONTENTS

UTILITY BUSINESS

=======================================

Regulars Utility Networks News

Nick Eyre Column

Viewpoint

New Members

Member Directory

16 3

Utility Business Summer 2013

Utility Networks News Member Group Chairmen and Divisional Chairman Elections 2013/2014 Member groups steer and formulate the consensus view on industry issues and provide useful information sharing and networking opportunities for members. The Chairman of each member group also sits on the Utility Networks board and contributes to setting the overall strategy and direction of the Division. Following the election process Group Chairmen for 2013/14 are confirmed as: Gas Storage Operators Group Roddy Monroe, Centrica Storage Metering Technology Group Jeff Cooper, Elster Metering Metering Services Group Dave Gregson, Calvin Asset Management

In 1996 he joined Transco then moved to Advantica where he managed the R&D and technical support teams for metering. In 2002 he moved to GWi as their Divisional Head of Engineering where he remained until in 2008 he established Tuffentech Services 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. On taking up the position Vic said: “This is a great honour to represent and serve the industry in this capacity. These are interesting and challenging times in all areas of the sector.

Network Engineering & Equipment Group Andy Vine, Crane Building Services & Utilities Data & Communications Management Mike Buss, Sensus Conservation Solutions We are also pleased to confirm that Vic Tuffen of Tuffentech Services Ltd is the new Chairman of the Utility Networks Board. Vic is widely acknowledged as one of the foremost authorities on meter lifecycle management with over 30 years in the Industry. He joined British Gas North Western in 1980 as a Gas Engineering Technical Apprentice and held several positions in the Regional Service Department then joined the Emergency and Meterwork Project.

“As a result of the RIIO outcomes and the on-going preparations for the Smart Meter Programme, there is a clear focus on innovation and technical solutions. One of my aims is to explore ways of enabling members to take advantage of these opportunities. “I am keen to see how the Division can share knowledge with other parts of EUA, perhaps to still further improve EUA’s standing on environment and energy saving. “The other area close to my heart is youth unemployment and in particular apprenticeships. I would hope that as a sector we are able to demonstrate that we are actively seeking to recruit and train the tradesman of tomorrow.”

Network Engineering & Equipment Group Meeting The inaugural meeting of the Network Engineering & Equipment group took place on 27 June. With an enthusiastic new Chairman in place Andy Vine of Crane Building Services and Utilities – the first meeting was extremely well received and attracted good attendance. Two guest speakers presented at the meeting: •

•

aul Breakey, Operations Manager, P Wales and West Utilities who gave a presentation on ‘RIIO: The first 6 months’. I an Moss Gas Safe Manager at EU Skills gave an overview of skills issues in the sector, thoughts on future trends and discussed programmes that EU Skills has secured funding for.

Andy is keen to move this group forward and his target is to expand both in terms of numbers of members and the range of subjects the group tackles. The focus for the next three meetings is to hear from individuals in the gas distribution networks about operational issues around RIIO, as well as other guest speakers of interest to the group (Andy is keen to keep the agenda open and encourages input from group members on subject matter you would like to hear about).

There is also the potential to create a sub group for suppliers of services and equipment/fittings. These meetings offer an open forum for discussion of pertinent industry issues so it is important your company is represented. The September meeting will hear from National Grid on RIIO and include an update on gas safety week. To coincide with the first meeting of the group a brand new newsletter is available for group members. Network News is designed around the group’s business interests and includes general information as well as member company updates - business wins, new technology, awards, staff news. It combines relevant news with some lighter elements and if you are not part of this group but would be interested in receiving Network News please email ana@eua.org.uk to be added to the mailing list.

> L to R: Andy Vine, Ian Moss and Paul Breakey

The Spring Meeting, the first event of Captain Noel Hughes year, took place at Olton GC Solihull, on May 17th. The event was well attended with twenty two players teeing off. This is a popular venue with our members and we were not let down. The course was in good condition and the catering first class. Captain’s Challenge Six teams competed for the President’s Cup at the annual Captain’s Challenge Day, this year taking place at the beautiful Broadway Golf Club in Worcestershire. Led by Managing Director Jeremy Nesbitt, The Affordable Warmth Team retained the trophy against strong opposition from the Captain’s Team. Thanks to all teams who supported the event this year. We are always pleased to welcome new members and our events are both fun and provide excellent networking. With a joining fee of only £20 don’t miss out on the opportunity to join circle members a few times a year. For more information please contact David Jones davidjones@eua.org.uk or Ana Ray ana@eua.org.uk The Golfing Circle has one further event for the 2013 year:

Autumn Meeting which will be held at Sutton Coldfield GC on 10th October

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Spring Meeting

New EUA President Steve Murray has been appointed new EUA president. Steve is currently Head of Contracts (West Midlands and North West Regions) for National Grid. Steve has worked in the energy sector for many years starting his career as an Apprentice Service Engineer with British Gas. He has worked in gas distribution upstream and downstream of the emergency control valve in a number of Asset and Operational managerial positions.

UTILITY NETWORKS NEWS

EUA Golfing Circle Spring & Summer Meetings 2013

Commenting on his appointment he said “I am honoured to have become EUA President and will spend my tenure working to support energy policy development and encouraging fellow members to become actively engaged with the association and its work.” > EUA President, Steve Murray

SMART UPDATE

Delay to Smart Meter Programme In a written statement in May, Energy and Climate Change Minister, Edward Davey, confirmed that commencement of smart meter roll-out would be put back 12 months, to start in Autumn 2015 with completion in 2020. EUA supports the decision to delay as there were concerns the timeline was not achievable. It will allow the detailed technical specification, security and certification criteria, to be fully in place and allow for better preparation for training of the large number of installers that will be required and give suitable lead times to smart metering systems manufacturers.

Transition Working Group As the smart metering programme moves between the foundation phase to the mandated rollout in September 2015, a joint Energy UK/DECC group – Transition Working Group - has been set up to manage the transference of governance from DECC to the Smart Energy Code (SEC) Panel. This will happen in stages, dependent on the additional changes to the suppliers license obligations and inclusion of the SEC powers within the suppliers license – which currently rests with the Secretary of State. Decisions on any required changes - in all but the most significant - will be managed on a ‘federated agreement basis’ i.e. debated by the relevant stakeholder committee and provided there is a complete (federated) agreement the change will proceed. If agreement cannot be reached the issue will pass to Ofgem or the SoS. The various committees likely to proceed are (subject to ratification by the programme and the Minister): Ministerial Rollout Group Smart Metering Steering Group Smart Metering Delivery Group Implementation Managers Forum Technical and Business Design Group Testing Development Group

(MRG) (SMSG) (SMDG) (IMF) (TBDG) (TDG)

Data and Communications Company, Communications Service Providers and Data Service Provider The necessary shared infrastructure for smart meters to operate across competing energy suppliers will be provided by the Data and Communications Company (DCC) and its service providers. Communications Service Providers (CSPs) will provide the communications infrastructure which will be separated into three regions: northern GB including Scotland; central GB including Wales; and southern GB. A single Data Service Provider (DSP) will manage the large volumes of transactional data that flows through the system. We expect announcements on the DCC, DSP and CSP contracts around the time Utility Business goes to press.

Utility Business Summer 2013

Utility Networks News continued SMART UPDATE

Central Delivery Body The Central Delivery Body (CDB) has been set up to provide centralised consumer engagement for the roll-out – a requirement by Government of the major energy suppliers. The organisation, which came into existence on 1 July 2013, has been busy setting up as a formal entity, putting together its Board of Directors, recruiting staff and locating an interim premises. In June it appointed Baroness McDonagh as independent Chairman. She will join the Board alongside representatives from energy suppliers, consumer groups and other independent interests. The Chief Executive is confirmed as Sacha Deshmukh. The CDB’s remit is to build consumer confidence in the installation of smart meters, build consumer awareness and understanding of how to use smart meters and the information obtained from them, increase consumer willingness to change their behaviours and reduce energy consumption. There is also a requirement to assist vulnerable, low income and pre-payment consumers to be able to realise the benefits.

The Nick Eyre Column

DECARBONISING THE BUILDING STOCK – YES, BUT HOW? Outside the ranks of climate change deniers, there is broad agreement about one aspect of the necessary future for energy use in buildings – its carbon emissions have to be largely eliminated by 2050. But agreement stops there: the debate is about how to do it? In the burgeoning literature on this topic, two broad approaches stand out. The first focuses on reducing the energy needs of our buildings, by improving their energy efficiency and installing renewable energy technologies within them, so moving towards ‘net zero energy buildings (NZEBs)’. The second focuses on decarbonising the fuels used in buildings, perhaps partly by increasing the use of biofuels, but mainly through use of low carbon electricity from the grid in heat pumps. The UK approach is set out in the Department of Energy and Climate Change’s recent ‘Heat Strategy’. This focuses on decarbonising fuels; it foresees district heating networks in urban centres and heat pumps elsewhere and there are some hugely ambitious goals. For example, the strategy projects half the homes in the country to have a hybrid heating system incorporating both a gas boiler and an air source heat pump, not by 2050, but by 2030. In Germany, the approach is radically different. The focus is on NZEBs, with an aim of reducing heat demand in buildings by 80% by 2050. This will require deep refurbishment of buildings, involving not just additional

insulation and high performance windows, but also major reductions in thermal bridging and the use of mechanical ventilation with high levels of air tightness. To anyone familiar with the practicalities of new energy technologies in buildings, both approaches look very technically ambitious to roll out rapidly over a whole national building stock. For almost every building, either the building structure or its heating system (or both) needs to be radically different, with the bulk of that transformation delivered within the lifetime of most current readers of Utility Business. Despite the debate, there is an important common factor, often unrecognised. Whatever the balance between energy reduction and decarbonisation, there are huge implications for the trades and professions involved in designing, building, maintaining and refurbishing the building stock and its utility services. It is the men and women doing these jobs who will be at the forefront, both of delivering the changes themselves and explaining them to their customers. Politically, there is now increasing recognition about the importance of education, skills and training for a low carbon economy. But the message needs to be loud and clear that it’s not just about a few nuclear engineers or carbon capture scientists, it’s about construction and building services as well. Solving the climate problem will need the active involvement of builders, heating engineers, electricians and everyone else in these sectors.

Dr Nick Eyre is Programme Leader of the Lower Carbon Futures group in the Environmental Change Institute at the University of Oxford, and a Jackson Senior Research Fellow at Oriel College, Oxford. He is a Co-Director of the UK Energy Research Centre, leading its work on energy demand. Nick previously worked at the Energy Saving Trust as Director of Strategy and, on secondment, in Cabinet Office, where he was a co-author of the Government’s 2002 Review of Energy Policy. Nick has worked on energy, environment and climate issues for 25 years. He has published extensively and is a lead author on the Fifth Assessment Report of the IPCC.

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UTILITY NETWORKS NEWS // THE NICK EYRE COLUMN // DATA & COMMUNICATIONS FORINDUSTRY SMART METERING NEWS

Data & Communications for Smart Metering On June 12 EUA held its one-day Data & Communications for Smart Metering seminar at the IET in London. The event attracted capacity audience of over 120 delegates for this second annual conference, which gave a broad review of end-to-end data and communications issues from a wide range of industry stakeholders’ perspectives.

Smart Metering Programme Update In May, DECC announced that the smart meter roll-out programme had been delayed by 12 months. Colin Sawyer, Head of End to End Solution Design for the Smart Metering Programme at DECC, said the decision had not been taken lightly, but working with manufacturers and stakeholders, it was recognised that the programme timeline required review. The programme is ambitious, he said, requiring major technology development and business and consumer change. DECC’s current priorities are:- fixing the design baselines for the manufacture of smart meters and associated equipment, awarding the DCC licence and service provider contracts – which is on track for August – and associated licensing, followed by a critically important testing and trialling period.

Data Challenges Giving his thoughts on the key challenges facing energy suppliers, Neil Pennington of RWE npower impressed upon the audience just how essential DCC would be in successful roll-out. He used the analogy of a wheel, with DCC as the hub, and identified the greatest potential risks:- right equipment design is crucial – a holistic end-to-end design is imperative that is well tested and meets the timescales and testing stage. Testing must be robust, end-to-end across industry parties and the DCC and in live situations. If interoperability is not consistent and systems and processes not failsafe it risks undermining consumer confidence. Marc Hobell, Ordnance Survey, said smart metering will require new processes, activities and information flows and change existing arrangements in how the gas and electricity market collects, provides

and stores data. It is a huge undertaking from which a framework for interoperability across all kinds of information in energy in GB will evolve. This will need to be supported by a set of enabling principles and operational rules that underpin and facilitate the integration of georeferenced information from multiple sources.

Consumer Engagement The Central Delivery Body (CDB) has been set up to provide centralised consumer engagement for the smart meter roll-out – a requirement by Government of the major energy suppliers. The organisation, which formally came into existence on 1 July 2013, has been busy putting together its Board of Directors, recruiting staff and locating interim premises. The CDB has appointed Baroness McDonagh as independent Chairman and she will join the Board alongside representatives from energy suppliers, consumer groups and other independent interests. A Chief Executive is expected to be in place mid-summer. Consumer Futures (which used to be Consumer Focus) is working hard on consumers’ behalf to ensure they are protected throughout smart development and deployment. They have particular concerns around the setup of the CDB because of its pivotal role in educating and informing consumers. The emphasis must not just be on marketing and PR, said Zoe McLeod, Consumer Futures. It must be a DELIVERY body not just a marketing body. Much of the success of the programme relies on behaviour change, not just information. This information needs to come from a trusted source, separate from Government and industry, offering an independent and central contact point, employing the right engagement approaches i.e. community engagement.

Utility Business Summer 2013

Data & Communications for Smart Metering

continued

1. 2. 3. 4. 5. 6.

Forbes McKay, CGI Colin Sawyer, DECC Neil Pennington, RWE npower Lawrence Slade, Energy UK Marc Hobell, Ordnance Survey Amy Cooke, Engage Consulting

7. 8. 9. 10. 11. 12.

David Green, SmartReach Mark Coyle, Silver Spring Networks Richard St Clair, Elster Metering Ltd David Thorne, Gemserv Laurence Carpanini, IBM UK Ltd Jean Crisp, Hewlett Packard Ltd

Communication Services To be successful, it is critical the smart metering programme ensures the best consumer experience both at installation and through its operational lifetime, said David Green. SmartReach is a smart metering communications solution based on Long Range Radio (LRR) connectivity, providing a secured wide area network (WAN) service. It is backed by four companies: Arqiva, BT, BAE Systems Detica and Sensus which together combine smart metering, communications and security experience with a track record of managing critical national infrastructure. David also highlighted the changing nature of communications with the convergence of broadcast media and social media. As telecomms, technology and media come together traditional channels are changing with implications for businesses as well as consumers. Silver Spring Networks is a leader in communications networking technologies and the main partner to Vodafone in their DCC CSP bid. Mark Coyle looked at the wider value of smart metering using examples of intelligent systems being developed. The UK has multiple, overlapping initiatives and programmes, he said, and needs to keep abreast of accelerating change. Smart meters are just the beginning and energy networks and markets will evolve towards distributed end point intelligence, putting greater control of energy into the hands of consumers and communities, turning data into meaningful actionable intelligence.

Smart Meter Design & Functionality Richard St Clair reviewed what is left to do to finalise the meter technical specification, ancillary equipment in the home, In Home Display, auxillary load switching equipment etc for SMETS2 to be finalised. There is still uncertainty which needs to be eradicated as soon as possible to enable the crucial testing stage to get underway. Interoperability and interchangability are the biggest challenges the programme presents and there is still much work to do. However, the level of joint collaboration within industry is excellent giving confidence to the programme.

Data Services The seminar included presentations from some of the companies involved in the bidding process for the DCC, CSP and DSP services. HP, IBM, CGI (formerly Logica) and G4S, all presented on issues around data services:-

13. 14. 15. 16. 17.

Rich Hampshire, CGI Chris Martin, Pinsent Masons David Chapman, G4S Duncan Page, UK Power Networks Zoe McLeod, Consumer Futures

from customer engagement, challenges and opportunities to the wider industry considerations and how the smart programme has moved the UK to be a prominent market leader in low carbon technologies. EUA was particularly grateful for these companies involvement, as the event coincided with a significant deadline in their bidding process.

Data Privacy Smart meter data is covered by the data protection act but additional regulation will be put in place, explained Chris Martin, Legal Director at Pinsent Masons. All consumers will have the right to view their personal data and have control over how their data is used. Third parties will have access to consumer data but it will only be able to be used under the guidance set out in the smart energy code.

View from the Distribution Networks UK Power Networks has done a lot of thinking around smart as part of its 8 year business plan required by the energy regulator, said Duncan Page. New technologies will bring new challenges i.e. electric vehicles, heat pumps etc will change network capacity/loads. Additionally, information from smart meters could help to plan a better network and improve asset management. He called for greater coordination between electricity distributors and suppliers in the programming of the roll-out. Although electricity supply companies will install smart meters, they will call out UK Power Networks across London, the South East and the East of England when there is a problem connecting them to the network, meaning greater workload.

Exhibition The event was supported by an exhibition which facilitated enjoyable and valuable networking between speakers, delegates and exhibitors. Exhibiting were the event sponsors CGI, COMEX 2000 UK, G4S Utility Services, Silver Spring Networks, SmartReach along with Junifer Systems and MAP Group (UK). Special thanks must go to our Chairs â&#x20AC;&#x201C; Ken Hickson, Symology, Amy Cooke, Engage Consulting and David Thorne, Gemserv.

It is the last time EUA will use this popular venue for a while as the IET closes for refurbishment from 1 July and does not reopen until 2015. (For those interested the Institution of Engineering and Technology will co-habit with the Institution of Mechanical Engineers at their offices at 1 Birdcage Walk whilst this refurbishment takes place).

I S S U E

DATA & COMMUNICATIONS FOR SMART METERING // LOW CARBONINDUSTRY ENERGY SOLUTIONS NEWS

LOW CARBON ENERGY SOLUTIONS www.utility-business.org

F E A T U R E :

Utility Business Summer 2013

UTILITY BUSINESS

LOW CARBON ENERGY SOLUTIONS

Building An Industry By John Lang, RenewableUK Renewable UK’s “Building An Industry” report was published with a very clear aim in mind. Together with our colleagues at The Crown Estate we wanted to set out a blueprint for the future development of the offshore wind supply chain in the UK. It provides a realistic outline of the practical measures that we believe need to be put in to place before the UK can fully tap into the economic benefits that this dynamic technology offers us. With regards to the message this report sends out, the overriding statement is that we have a “once in a generation” opportunity to build a flourishing offshore wind sector that will bring huge economic benefits to this country. There is a prize for us but there are of course risks that it could slip through our fingers, so we need to have the right framework in place to ensure that we seize this opportunity and keep hold of it. This is an exciting time for the offshore wind industry in the UK. Just recently we saw the largest offshore wind farm in the world, London Array, officially opened by the Prime Minister. We also had news recently of an even bigger project, Triton Knoll offshore wind farm, being given final consent, meaning work can start on a project to install over 200 turbines and an installed capacity of over 1.2 gigawatts- that’s enough to power about 900,000 homes. In addition figures released for electricity generation in 2012 showed that on average offshore wind produced 46% more electricity in the UK than in 2011. Perhaps just as importantly the same figures showed that the load factor for offshore wind - the average proportion of total possible output that is produced - was higher from offshore wind than it was from gas. Both these stats point to the increasingly important role that offshore wind is playing in our electricity mix. So we have come a long way but there is still a considerable way to go-the Government’s Renewable Energy Roadmap envisages the potential for 18 gigawatts (GW) of offshore wind installed by 2020 – a significant increase from the 3.3GW installed so far. This represents an opportunity, but also a challenge, and this report is very honest about those challenges. As well as looking at the situation in the UK, this report also examines the situation across Europe. It shows, for example, that Europe will need 64 major manufacturing facilities to serve the needs of the offshore wind sector. Just over a third of these are already operational, and plans for a further third have been announced. At the moment fewer than a quarter of these operational and planned facilities are in the UK – even though the UK is planning to build half Europe’s offshore wind farm capacity between now and 2020. In headline numbers the report also states that by 2030, the UK offshore wind sector will need as many as 7 turbine tower factories, 7 blade factories, 7 nacelle factories, 6 factories to build foundations, 6 factories to build offshore substations and 6 cable factories. The sector will also require more than 20 huge seagoing vessels to install offshore turbines, and a further 230 vessels to carry workers to and from the turbines once they are operational.

This equates to up to 7,930 turbine towers, 23,790 blades and almost 10,000km of cables, so this is a serious undertaking. To put those figures in to some context, that number of turbine towers would be enough, if laid on their end to reach from London to Cologne, and that much cable could stretch from London to Thailand! One of the most attractive elements of developing our offshore wind sector is the positive impact it will have on UK manufacturing through the extensive supply chain needed. This supply chain is growing all the time and with a proactive approach, this process can be accelerated. For example, industrial developments could be sited together in clusters to save time and money, and we should continue to aim for a target of at least 50% of the content of offshore wind turbines to be produced in the UK. If we are to beat off stiff competition from other countries in the development of the offshore wind supply chain then these are the type of steps the UK needs to take. In fact other countries such as Germany and France have already put in place financial incentives for infrastructure development and emphasised the importance of having a strong national content. That is why we are eagerly awaiting the publication of the Government’s Industrial Strategy for offshore wind, which will be published in the coming weeks, so that we can see what practical steps the Government has in mind to make sure the sector grows at a healthy rate. The UK has developed a world-leading track record in offshore wind delivery and built up a pipeline of projects that could potentially account for more than half of the total longterm European offshore wind market. ‘Building An Industry’ shows that the UK can build on this advantage, and reap the huge economic and environmental benefits, but only if we get the policy right.

RenewableUK is the UK’s leading renewable energy trade association. They support the development of UK wind & marine energy. The UK currently has 3.321GW of offshore wind energy installed – more than the rest of the world put together, and sufficient to power the equivalent of more than 2 million homes. The world’s largest offshore wind farm, London Array, went fully operational in April. The report “Building an Industry”, commissioned by RenewableUK and The Crown Estate, was written by an independent consultancy, BVG Associates. It is available in full on the RenewableUK website: http://www.renewableuk.com/en/publications/index.cfm

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BUILDING AN INDUSTRY // PATHWAYS FOR DOMESTIC HEAT

“The industry requires consistent and clear policy making rather than the mixed signals, delays and confusion of recent years. We would like to work in partnership with DECC to develop a framework to deliver this.”

Pathways for domestic heat By Roger Webb, HHIC Director Heat is the single biggest reason we use energy in our society. According to the Government’s 2012 report, The Future of Heating – A strategic framework for low carbon heat in the UK, we use more energy for heating than for transport or the generation of electricity. In the UK we spend around £33 billion on heat across our economy. By 2027 the government’s target for domestic heating is to reduce carbon dioxide emissions to 50.2 million tonnes - we currently emit 80 million tonnes of CO2. It is clear some serious changes are required. But one of the major challenges is that the UK has one of the oldest stocks of residential buildings in Europe. These homes are not energy efficient and with differing property types a one size fits all approach to energy efficiency will not work when it comes to installing new low carbon technologies. Today, 1.5 million boilers are sold every year. Meeting the government’s 2027 target assumes only 500,000 boilers will be sold, in a mix of other technologies and this is a huge change. Part of this adjustment will require consumers to come on board and play their part, but human behaviour is hard to influence and it may mean that to create the right kind of demand the carrot of incentives needs to be backed up with the stick of regulation.

HHIC research – our scenario HHIC has come up with its own scenario, on behalf of the industry, to take the UK towards a decarbonised society. In 2012 we commissioned research and analysis of ‘Pathways for Domestic Heating’ from Delta Energy and Environment to support our view that we need to keep a broad mix of options open for as long as possible. As part of our research we looked at different property types and the suitability of different heating products to these properties in lowering carbon emissions through energy efficiency. Our scenario considers realistic takeup and manufacturing timeframes and also assumes that gas remains an important part of the energy mix. It is vital that we have a mix of energy products and energy sources and Government needs to acknowledge this openly. Our scenario suggests industry could produce modern products by 2027, at volumes which would support progress towards 2050 targets (reducing carbon emissions by 80 per cent against 1990 levels), which is why we support a balanced mix of technologies.

Our research pathway offers Government a solution to meeting lower carbon emissions through product development. But we cannot kick-start any of this into action if the government only presents a long-term ambition without realistic intermediate targets. They need to instil confidence and show certainty and commitment to manufacturers of new low carbon technologies as it will require significant levels of investment. Part of the challenge will also require consumers to come on board and play their part.

What HHIC is calling on Government to do As an industry we are calling for an intermediate scenario to be put in place, a realistic pathway to get to 2030 that would provide industry with more security. The industry requires consistent and clear policy making rather than the mixed signals, delays and confusion of recent years. The heating industry needs assurance before they invest heavily in product development and innovation. If this does not happen, the market will continue to demand condensing boilers with fewer renewable and low carbon products. Electric heating and heat networks have a strong role to play but so too do low carbon gas appliances. We want to work in partnership with DECC to develop a framework to deliver this. The framework can consist of a mix of interventions, such as incentives, regulation, finance solutions such as the Green Deal, or tilting the playing field through taxes. A good example is perhaps the car industry, where the European Commission has set output based performance standards for vehicles. If assurance is given with the right interventions from the government to help create demand, then industry will invest and innovate and play its role in bringing solutions to the market. For further information on the HHIC Pathways for Domestic Heat contact Roger Webb at roger@hhic.org.uk

Utility Business Summer 2013

UTILITY BUSINESS

LOW CARBON ENERGY SOLUTIONS

Developments in the UK Biomethane Industry By John Baldwin, Managing Director, CNG Services Ltd The Carbon Plan, published in 2011, aims to reduce UK carbon emissions by a quarter from 1990 levels. With the current policies in place, the UK is on target to reduce emissions by over a third by 2020 and with the introduction of new technologies this should increase to an 80% reduction by 2050. However, currently around half the UK’s carbon emissions result from heat related processes and the latest analysis shows up to 52% of emissions from heat are from gas use. The greatest proportion of this is domestic gas use. Furthermore, with UK Continental Shelf (UKCS) resources in decline, the UK is becoming increasingly reliant on imports of gas and is more exposed to higher and more volatile fuel prices in the future. In light of this, developing technologies to decarbonise the gas grid and the production of heat is important. At the end of 2012, the UK’s first commercialscale Biomethane plant became operational, pumping renewable energy directly into our gas grid network. The Prince of Wales attended the official opening at Rainbarrow Farm, Poundbury, which represented the launch of a new renewable industry in the UK, with a key role provided by Southern Gas Networks (SGN) in converting the biogas into biomethane and injecting it into the SGN grid.

Green Gas Certificates The Rainbarrow Farm project has also helped to develop a market for the Green Gas Certificates (GGC) received for each kWh of biomethane injected into the grid. The REAL GGCS scheme (www.greengas.org.uk) is a not for profit scheme designed to allow tracking of biomethane from the Anerobic Digestion (AD) plant to gas consumers. A new gas shipper, Barrow Shipping Ltd (BSL), has been formed to provide gas shipping and Green Gas Certificate trading services to biomethane producers and the first sales have been made to The Duchy of Cornwall, Gas Bus Alliance and Brit European Transport Limited (BET). BET provide logistics services for JCB, so it is fitting that most AD projects have had extensive civil works using JCB plant. BET take out gas at the CNG Services CNG station in Crewe and uses this to fuel a new fleet of 36 dual fuel tractors, with the CNG linked to the Rainbarrow Farm plant via the GGCS. A great example of the circular economy.

Vale Green BSL is providing the same services to the next biomethane project that will be completed, Springhill Farm’s Vale Green project near Pershore. This is expected to start injecting around 400m3/hr biomethane into the Wales & West Utilities (WWU) grid from August 2013. What is particularly innovative about this plant is that it is uses a new combined membrane and cryogenic technology, made by Dutch company Haffmans. This produces biomethane for injection into the gas grid and a by-product of liquid CO2 which is then fed back into the greenhouses to grow more tomatoes, the waste from which goes back into the AD. > John Baldwin presents Andrew Phillips (Duchy of Cornwall) with GGCs

Any AD operator that is located close to a large CO2 user is now able to utilise this technology to

improve their overall carbon footprint and generate additional revenues. In addition, the gas grid owner, WWU have allowed Vale Green to procure all the equipment necessary to allow entry into their gas grid which has resulted both in significant capex savings and has allowed a significant reduction in project timescale and complexity. Both Rainbarrow Farm and Vale Green utilise some energy crops as part of the overall feedstock mix but both also use waste and illustrate the highly sustainable outcomes possible from biomethane projects. BSL has also established a Biomethane Producers Club, with initial members Rainbarrow Farm and Vale Green. The purpose of the Club is to share operational information to improve performance and lower costs and to work together to share spares and reduce the cost of buying such things as activated carbon and propane.

Overcoming Barriers The most significant barrier to biomethane injection to the grid in the UK was the level of oxygen allowed in the gas. Until recently, the oxygen specification was set to 0.2% in the final gas, which was problematic for many potential projects, particularly if oxygen or air dosing was needed to reduce the level of hydrogen sulphide in the biogas. However, thanks to efforts from WWU, the HSE have now issued a class exemption to Gas Safety Regulations (GS(M)R) to allow network conveyance of gas with an oxygen content of up to 1% (molar) at pressures up to 38 barg. At present, biomethane has to meet the Flow Weighted Average Calorific Value (FWACV) of the gas grid which, in most cases, requires the addition of around 10% propane energy. 100% methane has a CV of 37.8 MJ/m3, a typical FWACV is 39.2 MJ/m3 and hence propane is added to enrich the CV and

www.utility-business.org A remaining issue relates to capacity in the gas grid, with estimates of approximately 40% of potential projects constrained by lack of network capacity. Northern Gas Networks and National Grid have carried out an Innovation Funding Initiative (IFI) project to prove the viability of using a small compressor to reverse flow within the grid, creating capacity for biomethane. Following a successful pilot study, this method is now being rolled out across the UK to enable more projects to go ahead. The timing for this development is good as in many places solar farms are taking the capacity in the electricity grid and hence using biogas to generate electricity is not an option.

CNG Trucks and Buses Another driver for the biomethane market is the market for CNG trucks and buses. This year, four new CNG filling stations are being built (Reading, Darlington, Beccles, Runcorn) by the Gas Bus Alliance to supply CNG to Scania and MAN buses. These represent the first new buses to come to UK since the 1990s and are as a result of air quality and CO2 drivers. The buses may be given additional financial support if they use biomethane via the GGCS.

Mercedes Benz and Prins with DAF. Whilst grid CNG is the fuel of choice with biomethane via GGCS, the likely abundant UK shale gas resource means it may now be possible for all trucks and buses to shift to natural gas by 2030. This will produce around 25% CO2 reduction compared to diesel as well as major benefit in terms of balance of payments given that gas only costs 40% of the cost of oil. We wil know this by 2015 once shale gas drilling and fracking has taken place.

TACKLING ON OUR ROADS DEVELOPMENTS IN THE DISRUPTION UK BIOMETHANE INDUSTRY

ensure that customers who receive biomethane are not disadvantaged. Around 10% of projects have the possibility to blend the biomethane into the existing gas stream which reduces the propane required and the Renewable Energy Association is working with the Gas Distribution Networks to develop the rules for blending.

> John Baldwin meets HRH Prince Charles at the Rainbarrow Farm launch

Market Forecast The Renewable Heat Incentive, which is the renewable premium for biomethane injected into the grid, is set at a level of 7.3 p/kWh. Whilst there could be some reduction in this tariff in 2014 under the degression rules, the tariff is attractive and is sufficient to create a new renewable market driving down costs through competition and establishing UK supply chains. There are now around fifteen biomethane projects under development with three starting to inject their gas during summer 2013. The long term commitment by the Government to reward Biomethane production has made it attractive to many AD operators who would have chosen electricity generation.

> Vale Green, Springhill Farms biomethane to grid plant showing greenhouses, WWU ROV (left) and grid entry unit (right)

The Energy Networks Association (ENA) is also supportive and are working with the industry to reduce the costs and complexity associated with biomethane injection projects.

There are now three companies working closely with truck manufacturers to convert a new diesel tractor into a dual fuel CNG-diesel one. Clean Air Power are working with Volvo, Hardstaff with

> Arriva CNG bus filling at Crewe Filling Station

> JCB Dual Fuel Truck 13

Utility Business Summer 2013

UTILITY BUSINESS

LOW CARBON ENERGY SOLUTIONS

Preparing for a greener future The Customer-Led Network Revolution (CLNR) is a pioneering smart grid project at the forefront of the move towards a low carbon economy in Britain. Part-funded by Ofgem, the £54 million project is being spearheaded by Northern Powergrid – the electricity distribution network operator for the North East and Yorkshire, with expert project partner support from British Gas, EA Technology and Durham University. The largest project of its type in the UK, it comprises a series of trials to examine how a combination of smart network technologies and flexible customer demand response can support the widespread adoption of various low carbon technologies, such as solar photovoltaic panels, heat pumps and electric vehicles. The forecasted uptake of these technologies will place increased strain on local electricity distribution networks, but by working with more than 12,000 electricity customers through its trial programme, the CLNR project is producing industry-leading research that will help the UK’s energy sector meet the challenges associated with future energy demand. Ensuring that low carbon technologies can be accommodated in large volumes to support the UK’s transition to a low carbon economy is a key aim of the CLNR project, and the practical solutions being trialled will help address Britain’s energy trilemma of ensuring security of supply, affordability and reducing carbon emissions. Dr Liz Sidebotham, Communications Manager for the project, outlined the potential benefits it could bring to the UK energy sector. She said: “The Customer-Led Network Revolution project will help the industry maximise customer and network operator efficiencies through the implementation of new smart grid technologies and solutions. Customers will benefit through the creation of smart-enabled homes and businesses that give people flexibility over the way they use and generate electricity. Ultimately, the integration of smart solutions is a far more practical and cost-effective course of action than a full-scale upgrade of the UK’s existing network cables and transformers, which would cost billions and cause widespread disruption.”

Preliminary Findings The CLNR project officially launched in 2011 and the comprehensive and complex recruitment drive of 12,000 homes by British Gas has all but concluded. Customer offerings have been 14

developed, equipment has been installed, and surveys and in-depth interviews have been conducted. The project is now focused on collecting and analysing data from the established trials and interim results have been published on the project website and shared with key stakeholders across the energy sector to illustrate some of the initial findings. “We’ve been studying thousands of residential, commercial and industrial electricity customers to better understand how much electricity people use, when they use it and for what purpose, and whether financial or other incentives can encourage them to shift their usage away from periods of peak demand”, says Dr Sidebotham. “Our preliminary findings at this stage have shown a huge interest from domestic customers for time of use tariffs, suggesting that customers are willing to take ownership of their electricity consumption in return for lower bills. “We’ve also seen signs that customers are open to changing their usual routines − putting their washing machine on overnight instead of during the day for example − to benefit from a cheaper tariff. This is a win-win situation, as it offers customers a way to save money and network operators a means of cost-effectively reducing network demand at peak times.”

Smart Meters The CLNR project has offered customers the opportunity to participate in a number of trials, including simple monitoring or more detailed monitoring, and a number of pioneering service propositions, such as a time-of-use tariff, all of which require some form of smart meter. The CLNR project found that customers responded positively to the opportunity to save money, recognising that smart meters can help them achieve this. In particular, trials related to time-of-use tariffs were well received with over 600 customers signing up. The recruitment rate was 11% higher for customers eligible to receive a smart meter than for those who already had one, suggesting that the offer of a smart meter was seen as an attractive incentive. Professor Harriet Bulkeley from Durham University and Stuart Rolland, Managing Director Smart Metering at British Gas, were recently invited to give evidence on behalf of the CLNR project at the Energy and Climate Change Committee inquiry into the UK Smart Meter Roll-out. Professor Bulkeley said: “The new trials that are happening at the moment are going further into depth to try to understand what the effects of the smart meters are, why it is that you get those kind

www.utility-business.org of results, and how they combine with other things, such as time-of-use tariffs, which will add detail to our understanding of what a smart meter roll-out might look like. “What we found is that roughly two-thirds of the people that we have spoken to are very enthusiastic about their in-home displays, about one-third of them are less enthusiastic, and about 3% actively disconnect them, so very few actively move away from them. “We find the idea of a smart grid trial has provoked within people a sense of a civic relationship with the grid. They treat it not so much as a matter of a consumer relationship, but they are quite interested in their own role in keeping the lights on, in securing energy futures, and in the decarbonisation and climate change agenda.” Stuart Rolland added: “British Gas is bringing the benefits of smart meters to its customers early, so they can, for the first time, see their energy use in pounds and pence as they use it. As current energy meters near the end of their lives, we are replacing them with smart meters, and have installed a million across the UK already. We’ve had great feedback from our customers, who agree that their smart meters give them greater control over their energy use.

of the peak period. We have had very good early results, indicating that you can shift about 14% of the peak usage, which is very significant actually in terms of the overall objectives of smart metering.”

The Smart Grid Alongside research into consumers’ energy use behavior, new technologies need to be deployed on the network with the end result being an improved network, or ‘smart grid’. Innovative grid technologies, such as real time thermal rating (RTTR) devices; which provide accurate live readings of the temperature of underground cables and overhead wires, and electrical energy storage units; which store electricity and release it when there is a spike in demand or generation, are being trialled as part of the project. Dave Roberts, Future Networks Director at EA Technology, explains: “The smart grid transition essentially describes the integration of conventional and innovative solutions to accommodate the low carbon challenge, utilising solutions with customers, network equipment and generators.

PREPARING FOR A GREENER FUTURE

“The idea of a smart grid trial has provoked within people a sense of a civic relationship with the grid. They are quite interested in their own role in keeping the lights on, in securing energy futures, and in the decarbonisation and climate change agenda.” “Whilst this presents significant opportunity, the choice of solutions available to a network operator can be expected to increase substantially as the innovation learning curve takes effect. “Knowing which solutions to use, when, and on which type of network will be essential to assess investment needs and ensure that electricity networks continue to operate in an efficient manner, are capable of responding to continuing change, and deliver value to consumers. “Much of the technology we are trialling has not been used in the UK on a large scale before, but new solutions to address network constraints are coming to fruition and the CLNR project is playing a crucial role in helping to find out what works well, and what doesn’t, both of which are equally important.” The findings from all CLNR trials are being shared with other electricity distribution network operators and the wider energy industry across the UK, as well as on the project’s website. Visit www.networkrevolution.co.uk for more information.

“A very interesting part of the CLNR trial is trying to understand whether you can shift consumer behaviour in terms of when energy is used outside

Utility Business Summer 2013

Gas Industry Awards 2013

Winners of the 2013 Gas Industry Awards were announced at the annual lunchtime awards ceremony at the Hilton Park Lane, London on 7 May. Over 600 senior representatives of the gas industry together with guests from Government, its agencies and the media, gathered to celebrate the awards which recognise success, achievement and innovation in the gas industry.

He concluded by saying that ‘the Government sees gas playing a key role in our energy mix now and long into the future, complementing low carbon goals and sitting alongside the role of renewables and nuclear, not in conflict with them.’

Jointly organised by the Institution of Gas Engineers and Managers and EUA, the event included a networking drinks reception, sumptuous three course lunch and topical after dinner address.

The judging panel consisted of:

Following the lunch and address the announcement of the awards took place where fifteen awards were presented to individuals and companies. The Rt. Hon. Michael Fallon MP gave the first energy speech in his new post as Minister of State for the Department of Energy and Climate Change. In his speech Mr Fallon said “that combining the role of Minister for Business and Minister for Energy was the right thing to do as the ‘business of energy’ is, of course the ‘energy of business’.” He went on to celebrate the role that gas plays in the current UK energy mix and talked about the current misconceptions held about Government views and stated that ‘we are pro-gas and we are pro-low carbon’ and that as Energy Minister he had to ‘ensure security: a range of energy supply sources and no over reliance on any single fuel type or source. Meaning Gas, renewables, nuclear and CCS.’

> Rt. Hon. Michael Fallon MP

Chris Murray

IGEM, President 2013-2014

Steve Murray

EUA President 2013-2014

David Morgan

IGEM, Immediate Past President

David Jones

EUA, Director, Utility Networks

Roger Webb

EUA, Director, HHIC

Martin Atkinson

Vector Business Services Ltd, Managing Director

Chris Gorman

IGEM, Technical Co-ordinating Committee Chairman

Chris Bielby

Scotia Gas Networks, Director of New Business

Tony Hetherington Health and Safety Executive, Head of Operations – Gas and Pipelines Unit, Hazardous Installations Directorate Dr Jane Haswell

PIE UK, Principal Consulting Engineer

Robert J Murray

Skanska Utilities, Director of Gas Engineering

We are extremely grateful for the support of our event sponsor J Murphy & Sons Ltd and to each of the award sponsors.

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GAS INDUSTRY AWARDS 2013

The 2013 Award Winners

Safety Award AND Company of the Year J Murphy & Sons Limited

International Business Development Award GL Noble Denton

Company of the Year was awarded to Murphy in recognition of their ability to develop, adapt and deliver customer expectations with repeat business underpinning sustained growth.

GL Noble Denton was recognised for the role it plays at the forefront of regulatory development internationally. In particular, the judging panel identified the company’s ability to draw upon its global knowledge of gas and petroleum safety legislation to help international markets create and apply safety regulation to their energy industries for the first time.

An excellent business development strategy and continued investment in people to ensure the right skills, experience and resources are available to meet the changing market conditions were acknowledged by the judges as key factors in enabling Murphy to flourish globally today. John Stack, Murphy Chief Executive Officer, commented: “The company is extremely pleased to have all of our efforts recognised by receiving these prestigious awards reflecting a commitment by all personnel to the company’s continued success.” The Safety award was presented to Murphy for strong leadership and the way in which the company engages employees, clients and suppliers in the drive to achieve zero harm, by recognising the link between behaviours, systems and people. Placing safety at the core of the business, Murphy has achieved sustained and measurable improvements in safety performance linked with enhanced business efficiency. Yvonne Bennett, Head of Performance & Development commented, “We have invested significantly in our employees and supply chain to encourage better ‘choices’ in achieving a zero harm culture in everything we do. Over 3,000 people have been exposed to our on-going Culture Development Programme so far (including clients) and as we embark on the next phase of what our clients have called a “world class programme”, the team looks forward to helping others maintain excellence and keeping everyone safe.” Safety award sponsored by GISG (Gas Industry Safety Group) Company of the year sponsored by Dong Energy

In the past 12 months, GL Noble Denton’s international team of Safety and Risk experts has assisted major jurisdictions in Europe, the Middle East and the South East Asia, to develop their safety regimes in line with industry best practice. The company offers some of the sector’s most technically proficient advisors on energy regulation, with experience in key areas such as major accident hazards, safety management systems and processes, and worldwide on-and offshore legislative measures. GL Noble Denton is currently providing technical guidance and assistance to the Commission for Energy Regulation in Ireland to design and implement a new Petroleum Safety Framework. It is also working extensively with a major Middle Eastern gas-producing nation to develop a regulatory regime for the very first time. In addition, the company has advised Government authorities of an energy hub in South East Asia to develop a gas safety framework covering the complete gas chain from production through to utilisation. “GL Noble Denton promotes the merits of strong and successful safety regulation through the work that we undertake on behalf of all of our clients,” said Pekka Paasivaara, Executive Board Member, GL Group. “We’re delighted to have been recognised for our work assisting countries to create world-class regulatory regimes, and the efforts of our experts to share and promote best practice across the oil and gas industry as a whole.” Sponsored by IGEM

> EUA President Steve Murray

Utility Business Summer 2013

The 2013 Award Winners

Gas Industry Leadership Award Nigel Curry Chief, Executive Officer, Rhead Group Nigel was commended for his drive and vision in leading Rhead Group through a significant period of growth. He was recognised for his demonstrable success in ensuring client expectations are exceeded by creating strong project teams focussed on delivering value, innovation and excellence. In accepting the award, Nigel Curry said, “I am fortunate to be leading a talented team in a great company. This award recognises the success of our business which is being achieved by staying focused on our business plan, continuing to recruit and develop the best talent whilst delivering the services that our clients value. “It is recognition to all in the business that IGEM and EUA have such regard for what the ‘Rhead Team’ has achieved and I feel privileged to play my part within this. We have an exciting period of organic and acquisitive growth ahead as we continue to expand our service offerings in Europe, the Middle East and Asia Pacific. During this time the team aims to raise the profile of our business across the sectors and regions in which we operate. This award is another positive step in this direction.”

Gas Industry Innovation Award Synthotech Limited This award has been given for the combination of innovative devices which have been designed and produced by the company. Each product provided a unique and cost effective solution to a gas industry problem. Synthotech are absolutely delighted and honoured to be recognised by industry for achievement in Innovation, particularly our SynthoTrax System that has been designed from concept by our talented team of Engineers who collected the award. SynthoTrax is a ‘live launch’ robotic vehicle that undertakes surveillance inside larger diameter gas pipelines. The system has been proven remarkably successful through trials on the National Grid Gas NGG Network on behalf of JB Riney as part of the London Crossrail project. The robot is vertically launched into the pipeline which significantly reduces: the size of excavation required, impact on the environment, inconvenience to the road user, risks associated with large excavation works and, has already saved in excess of £2M. The system has since been approved by NGG and it is expected to feature significantly during the RIIO regulatory period for tier 2 and 3 applications. Synthotech would like to thank all those who have contributed to this successful development. Sponsored by GL Noble Denton

Sponsored by Domestic & General

Gas Industry Manager of the Year Award Glenn Norman, Scotia Gas Networks Sponsored by Radius Systems

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Gas Industry Climate Change Award National Grid, LNG

Two special awards…

GAS INDUSTRY AWARDS 2013

The need to reduce the amount of energy used for heating has become an increasingly important element of the UK Government’s commitment to reduce its carbon emissions. The winner of this year’s Climate Change Award has reduced its own annual gas consumption by a massive 169 million cubic metres and has reduced its carbon footprint by 50% by making use of heat that would otherwise be wasted at a nearby power station. Sponsored by EUA

Energy & Utility Skills Business Skills Award Ian Aldridge, National Grid Ian Aldridge championed, developed and implemented a new web based and EUSR hosted referencing scheme for use by gas asset owners, representing a major innovation to improved safety and performance and maintenance of skilled resources. This has widespread support from all stakeholders including the Information Commissioners Office and benefits and safeguards the gas distribution transportation system in the UK. Sponsored by Energy & Utility Skills

Gas Industry Young Persons’ Special Award Northern Gas Networks This company recognises that young people are the lifeblood of their organisation. The Young Persons’ Network is an inspiring group of young employees who share their diverse experiences of the gas industry, improve business performance and nurture the leaders of tomorrow. “Formed less than 12 months ago, our Young Persons’ Network aims to bring together young employees to share knowledge and experiences, undertake team building and fact finding missions and ultimately nurture the leaders of tomorrow. It already has over 100 members aged between 18 and 35 who span a wide range of operational and nonoperational roles, from engineering to IS and from record keeping to dispatch.”

Gas Industry Engineer of the Year Frank Harries, Project Manager, National Grid Frank Harries consistently demonstrated visible leadership in safety, environmental management and innovation. In just over twelve months, the 53 acre Partington liquefied natural gas storage tanks and process plants were cleared with zero environmental harm plus 95% of the site was recycled. Sponsored by GTC

Gas Industry Young Persons’ Achievement Award John Arnold, Manager, All Party Parliamentary Carbon Monoxide Group Sponsored by Morrison Utility Services

Outstanding Services to the Gas Industry Steve Brown, Ofgem Steve Brown has been involved in nearly every gas safety initiative over the last decade, providing specialist technical advice to both internal and external customers. They often open the right doors and facilitate effective discussion and debate across industry. The judges recognised his invaluable contribution to such things as the RIIO GD1 price control review, the All Party Parliamentary Gas Safety Group, the London Olympic and Paralympic games plus he is an active member of the IGEM Technical Coordination Group.

Utility Business Summer 2013

Viewpoint Can load management solve the UK energy crisis? When smart metering was first proposed, it was predicated on the premise that it would create a more tangible link between data, consumer behaviour and consumption… and lead to a more energy efficient future. In short, users would receive unambiguous data on their energy consumption in near real time and this would prompt them to invest in energy efficiency technologies and help to change their relationship with energy. This is still one of the fundamental drivers, however, many of the original assumptions about behavioural change have been superseded by European Directives forcing consumers into greener technologies, such as the move banning the sale of incandescent light bulbs, the development of ‘A+++’ rated televisions and the specification of condensing boilers. In other words, the opportunities for discretionary energy savings among domestic consumers are declining well before the smart meters have been deployed. That’s no bad thing, of course, and households will continue to invest in energy conservation measures, whether this is simply turning the thermostat down, adopting PV generation or using ground source heat pumps, but there will come a point for the majority of domestic consumers where the gains are at the margins. The question is, once we reach this plateau for domestic energy usage, how do we stop the lights going out when we know that our energy security is at risk, with OFGEM warning that there is a one in four chance of blackouts by the winter of 2015-16. With spare capacity falling from 14% last year to a predicted 2% in the not-too-distant future, is it any wonder that big businesses are already being consulted over stemming demand at peak times? Of course, it’s unrealistic to expect people to turn off their televisions or their computers, dim their already energy efficient light bulbs, ration the use of their refrigeration units or choose not to charge their tablets or mobile phones. The paradox is the Government’s belief that domestic consumers will use more energy to charge their electric vehicles and renewable sources will lead to more network instability. The bottom line is that there is probably little scope to use domestic loads to shift significant level of demand. So how do we leverage the benefits of technology to mitigate the UK’s shortfall in energy generation and thereby prevent us heading towards an energy crisis? The time is right to assess the contribution that smart metering can make to a more efficient future but also to take account of other technologies that can ‘out-smart’ smart meters when it comes to contributing to a more secure energy supply. The obvious starting point for this debate is the role of the smart grid, what it is and what it can contribute to providing energy security. The belief at the moment is that the mass deployment of smart metering is required before smart grid can be used to enable demand management. The good news is that there is proven technology available today that could be deployed quickly and make a tangible difference to balancing the UK’s energy supply that does not depend on smart meters. What demand side management does is to provide a means of immediately addressing supply and demand imbalance by switching loads quickly.

Alan Jones

Director of Technology and Product Development at Energy Assets

Demand management technologies are already proven and currently control the lighting systems in the City of London and heating and cooling systems at the Barbican - this is a fully deployed and proven Smart Grid. Extending this concept of load shifting to a nationwide basis could be central to a coherent strategy for energy usage that helps balance supply with demand, but with an investment that is a fraction of that earmarked for smart metering. Such technology, if applied across the electrical supply network and controlled with state-of-the art software, would be able to handle many millions of loads simultaneously, meaning that street lighting can be dimmed or turned off when not needed, refrigeration and heating units turned off for small periods of time without any negative impact, office complex interior lighting systems automatically switched off overnight. These control systems are delivered using power line communication technology, but with a unique characteristic that achieves complete propagation of the network, including penetration of transformers, meaning data can be sent simultaneously to any number of switchable devices and controlled via the internet. This is the principle of the Energy Assets’ Z-LYNK technology currently used to control heating and hot water heating in blocks of flats in London and to manage the lighting around the City’s iconic buildings, which will soon include the ability to dim LED lighting automatically. So how do we take advantage of load switching as part of an integrated strategy? The industrial and commercial sector, which is responsible for around 40% of the nation’s energy consumption, is where the biggest ‘sweet spot’ is available for demand management. Business and public sector organisations are likely to be alive to the cost and carbon reduction benefits that can be delivered…and proven via the near real time reports provided by advanced metering. The reason why load management has become more difficult in the UK is that the ownership of distribution and generation has been decoupled from electricity suppliers. In this new world, electricity suppliers are focused on selling as much as energy as possible without responsibility for security of supply. If this were a vertical business model, stretching from energy generation to distribution to consumer, load management would be an obvious ‘win’ to promote efficiency and keep the lights on. The technology that enables intelligent demand management and makes it possible to reach every power socket, every light, and load on the network is not new as a concept but today it is enhanced by advanced cloud based software. In the I&C space, this strategy would enable loads to be switched off for short periods of time when network demand is very high, mitigating large scale blackouts. In this environment, two types of loads are identified - deferrable loads (those that can be interrupted without any significant consequence) and non-deferrable loads integral to safety or core activity. Examples of

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@ EUAUN

Alan Jones is Director of Technology and Product Development at Energy Assets, the UK’s leading independent provider of gas metering services to the I&C sector. He is responsible for shaping the Energy Assets portfolio of products and technologies.

WWW.UTILITYBUSINE the permis sion of Nationa l Grid

Autumn/ Winter Transforming the way customers engage with energy State of play ahead of the official start of the UK’s smart meter rollout programme in 2015, in particular how ready are consumers.

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THE DIVIS IONAL MAG AZINE FROM

EUA UTIL ITY NETW ORKS

ISSUE FEA TURE:

used with

Such an approach would enable even relatively small amounts of energy to be aggregated, enabling the better management of peak demand. This will not only help maintain a position where the lights stay on, it will also become a net contributor to a low carbon future, a positive proposition given the public’s general enthusiasm for a greener way of living. This sentiment remains true even if shale gas proves to be a major source of UK energy. In short, this is about a more intelligent use of energy on a larger scale, with opportunities to incentivise load switching in a more granular way. Smart metering can deliver the data but is questionable what impact it can have on domestic consumption - whereas with load management, we can manage peak demand much more intelligently, particularly in the I&C sector, to ensure that we optimise the consumption of the nation’s energy supply through more effective control of deferrable loads, whether in a domestic, business or public realm setting......and ensure that we keep the lights on!

Next issue

SPRING 2013

Cover image

deferrable loads would be those that support heating, cooling and hot water systems that can be turned off for 10-15 minutes without any material impact. For me, smart grid should be about more intelligent use of energy through transparent load optimisation and shifting peaks, with the consent of consumers.

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VIEWPOINT

BUILD G R ENERIN INFRAOSU GY TRUCTU RE In this issue • The : • Utility StreeOlympic Legacy • Challeng ing t Works Upda • New Colu the Perceptions te of Apprentic mnist Nick eship Eyre, Univ ersity of Oxfo s rd

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Utility Business Summer 2013

New Members & Directory Fast Flow Group Ltd Pro-active • Professional • Focused • Cohesive • Responsible Fastflow Group Ltd joined the Utility Networks Division in May. Formed in 1991, we are a dynamic, growing and independent utility infrastructure service provider. The use of technology and a commitment to innovation is driving the business forward as we are challenged to find ever more effective and efficient ways to deliver services to clients. We invest significantly in training and have developed in-house facilities and programmes which ensure individuals reach their full potential; continuously improving team performance. We’ve introduced a fully computerised work management system which provides site teams with up to date information and ensures accountability for safety, environmental and quality standards. It also supports customer service by having accurate information to hand and ensuring jobs are realistically planned. It also allows the collection of accurate and timely information, used by clients to generate improved management of their assets. We take responsibility for all our actions on and off site, being aware that what we do has an impact on the health, safety and welfare of others, as well as the environment in which they live and work. In addition to our ecologically- sensitive trenchless systems, over 85% of our excavated material is recycled. Core Services include mains rehabilitation and renewal, repairs and maintenance, trunk mains cleaning, water networks, gas, new connections, metering, reinstatement, utilities, street works. Trunk Mains Cleaning The company has invested in a patented solution for water trunk mains cleaning which has been successfully deployed with key utility clients such as Northumbrian Water. This UK and European patented process is capable of operating over distances of up to a kilometre, requires fewer excavations and pipe interventions – saving time and cost, while improving safety and reducing environmental impact. The unique 12 nozzle spray head with its adjustable, revolving head and spring loaded arms, is able to negotiate 90° bends. Achieving results well within the Drinking Water Inspectorate standards it ensures clients can provide clean water to their customers. Pipeline services We deliver a complete range of clean water infrastructure support services across the UK, including investigation, design, planning, infrastructure maintenance, mains rehabilitation, new connections, metering and repairs. Energy Services Fastflow Energy Services (FES) is a gas infrastructure contractor with vast experience. It offers a full range of services such as scheme design, project management, modification and construction of utility infrastructure assets. Contact If you are interested in finding out more about Fastflow visit our website www.fastflow.co.uk

GAS STORAGE OPERATORS GROUP Centrica Storage Cheshire Cavity Storage Group Ltd E.ON Gas Storage UK Ltd EDF Trading Gas Storage Limited Eni Uk Ltd Gateway Storage Company Ltd Halite Energy Group Humbly Grove Energy Ltd INEOS Enterprises Ltd Islandmagee Storage Ltd King Street Energy ScottishPower Energy Management Ltd SSE Hornsea Ltd Statoil Storengy WINGAS Storage UK Ltd NETWORK ENGINEERING AND EQUIPMENT GROUP Aeon International Ltd AMEC Group Limited AVK UK Ltd Balfour Beatty Utility Solutions Bureau Veritas Carillion Utility Services Clancy Docwra Limited Crane Ltd t/a WASK Drain Center Enterprise plc Fast Flow Group Ltd Fiorentini UK Limited Fulcrum Fusion Provida Limited Future Energy Group Gas Measurement Instruments Ltd. George Fischer Sales Limited GL Noble Denton GPS PE Pipe Systems J Murphy & Sons Morland Utilities Ltd Morrison Utility Services National Grid Northern Energy Connections Ltd Northern Gas Networks Ltd P N Daly Limited PLCS Limited Radius Systems Ltd SARCO Stopper Ltd Synthotech Special Products Limited Veolia Water Outsourcing Ltd METERING TECHNOLOGY GROUP D I UK Limited Elster Metering George Wilson Industries Limited Itron Metering Solutions Landis+Gyr Secure Meters

METERING SERVICES GROUP Axiom Metering Ltd Calvin Asset Managment E.ON Energy Solutions EDF Energy Customer Field Services Energy Assets Ltd G4S Utility Services Ltd Gentrack Lowri Beck Services Ltd Providor Siemens Metering, Communications & Services Tuffentech Services Ltd DATA & COMMUNICATIONS MANAGEMENT Alcatel Lucent Arqiva Bglobal Metering Ltd DNV KEMA Ltd Electralink ELEXON Ferranti Computer Systems Hewlett Packard Panasonic Industrial Devices Sales Europe GmbH Power Plus Communications AG Sensus UK Silver Spring Networks UK & Ireland Smarter Metering Services Ltd Xemex NV ASSOCIATE MEMBERS ByBox Capita Symonds Ltd CEVA Logistics Limited CNG Services Ltd Develop Training Ltd Engage Consulting Enzen Global Ltd Generis Technology Ltd Gtc Kingsley Plastics Ltd Lightsout Computer Services Lomax Training Services Ltd Mike Stratton & Associates Ltd Rhead Group Ltd Simply Marcomms Ltd (SMPR)

NOW!

www.eua-events.org.uk • Never miss details of latest EUA events - straight to your inbox • Event coverage • Speaker profiles • See who is speaking, sponsoring, supporting • Find out more about sponsor and exhibiting opportunities It’s straight forward; just visit www.eua-events.org.uk and click on receive event updates.

EUA Events 2013 September 26 Utility Metering

November 13 Gas 2013

The programme will address policy, strategic objectives and gather stakeholder opinion from across the supply chain and data and communications providers.

A high profile annual seminar that will see senior decision makers debating current and future gas industry challenges

National Motorcycle Museum, Birmingham

One Great George Street, London

“Definitely the leading light on SMART”

“People, place, topics, camaraderie were the best features of the seminar; very good speakers and content”

Encore Energy (Utility Metering 2012)

Skanska (Gas 2012)

October 30 Utility Asset Management

December 5 Utility Regulation

This event will provide delegates with a wide range of experience and share best practice approaches within the industry.

Now in its ninth year, this one day seminar will address regulatory issues primarily across the gas, power and water sectors. This event regularly attracts a high calibre audience due to its influential speakers and high level content.

PwC, London

“Very clear and engaging presentations on an underrated area of business” N Power (Utility Asset Management 2012)

Hogan Lovells, London

“The thinking persons’ conference” Skanska (Gas 2012)

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

Utility Metering Roll-out Delay - A Window of Opportunity 26 September 2013 - National Motorcycle Museum, Birmingham

Following the Government’s decision to delay smart meter mass roll-out until autumn 2015, and complete by end 2020, this seminar will bring together the important players from the equipment supply chain and representative bodies to review the challenges of system installation and testing, meter manufacturer and engaging consumers in the smart metering experience.

Hear from: • • • • • • • • • • •

Landis+Gyr RWE npower Siemens Metering Central Delivery Body uSwitch Trilliant Gemserv ElectraLink Green Energy Options Tuffentech Services ByBox

Book online at www.eua.org.uk/events or contact vanessa@eua.org.uk for more information. Sponsor/exhibitor opportunities also available. Sponsored by

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