The Energyst

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20

Positive outlook: Can battery storage fill a looming capacity gap?

August / September 2016

50

Chilling news: Firms wasting up to 10% of UK power by leaving air con on

58

Share value: Data initiative sees firms unlock energy efficiency

£85m – The potential cost of non-compliance to businesses p28

INSIDE THIS ISSUE

42 Energy finance

Financial and non-financial reporting. Why do only 6% of large EU companies provide any form of non-financial disclosure yet it is viewed as good governance?

20 Battery storage

Can battery storage fill a looming capacity gap?

Experts weigh in

50 HVAC

Chilling news: Firms wasting up to 10% of UK power by leaving air conditiioning on when nobody’s there

24

44

Demand-side response

Combined heat & power

Can National Grid hit its 2020 target for balancing the grid via demand-side measures?

The system operator has set ambitious goals, says industry

Food for thought: Andigestion is one of the UK’s largest gas-to-grid anaerobic digestion facilities of its kind. The Energyst investigates

28

Esos update

Alarm bells should be ringing for those businesses that still need to comply with Esos

£85m – The potential cost of non-compliance to businesses

06

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20

Positive outlook: Can battery storage fill a looming capacity gap?

58

News

Government will decide “in early autumn” whether to go ahead with its commitment to build a new nuclear power plant at Hinkley Point

August / September 2016

50

Chilling news: Firms wasting up to 10% of UK power by leaving air con on

58

Share value: Data initiative sees firms unlock energy efficiency

£85m – The potential cost of non-compliance to businesses p28

15

Cover story

Energy management

ista helps to meter, bill and manage consumption

UK’s largest firms share data to boost efficiency investment

4

Gas & electricity

30

Renewable energy

54

Insight

10

Energy finance

40

The Energy Event

61

Policy & legislation

12

CHP

44

Water management

66

Demand-side response

20

HVAC

48

Q&A

74

News & comment

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August/September 2016

3

COMMENT

Is there a Hinkley point?

Is Hinkley Point C the future of low carbon electricity generation in Britain or a white elephant – a technology hangover from the 20th century? The new UK government seems to be having doubts. It states that it has concerns about security with the Chinese investment partners to EDF in the project. China General Nuclear Power would fund one third of the £18bn costs in exchange for permission to build another nuclear power station in Bradwell, Essex.

The idea of bold engineering projects that produce low carbon electricity in abundance is attractive. Hinkley C alongside projects such as the Severn Barrage, both of which have the potential to generate 7% of the UK’s power needs, attempt to solve the problem of low carbon electricity generation. However, attractive though they are from a technological point of view, they should not be built. The reason is simply economics.

Centralised large-scale engineering projects were intrepid examples of 19th and 20th century dreams.

The future is localised and the reason for this is cost.

As prices fall for battery and renewable technology along with smart grids able to adapt to demand variations, the need for expensive centralised generation with its transmission losses is unnecessary.

Nuclear technology can be made to work and be relatively safe if operated effectively yet it cannot at present compete financially. The basis of the £92.50/

MWh strike price to incentivise the development of Hinckley C was based on the assumption that the price of non-nuclear fuel would double. Yet they are lower than in 2013 not rapidly rising. The National Audit Office has said that the value of the strike price in top-ups to the generator has gone from £6bn to almost £30bn due to wholesale costs falling. In terms of value for money it is becoming Hinkley pointless, and it is questionable whether this technology is the solution to the UK’s looming energy gap.

Utilitywise’s strategy and innovation director Jon Ferris has stated that “the UK could offset more than the expected output from Hinkley Point C by taking all the opportunities to save energy identified due to Esos, and at a much lower cost”. The Esos savings identified are not the end of the whole story but if we just take these it would save nearly 30 TWh annually, or 10% of current UK electricity demand.

So as ever energy efficiency, sometimes called the fifth fuel, makes a compelling case for serious consideration.

If the government decides to go ahead it will be more to do with pleasing France and China politically than the economic reality of secure, affordable low carbon generation.

The National Audit Office has said that the value of the strike price in top-ups to the generator has gone from £6bn to almost £30bn due to wholesale costs falling

Editor Tim McManan-Smith tim@energystmedia.com t: 020 3714 4450 m: 07818 574308

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Production Paul Lindsell production@energystmedia.com m: 07790 434813

4 August/September 2016

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news & comment

Government to ‘decide in autumn’ on new nuclear at Hinkley Point Business secretary Greg Clark has said the government will decide “in early autumn” whether to go ahead with its commitment to pay EDF an index-linked £92.50/ MWh for 35 years to build a new nuclear power plant at Hinkley Point.

The announcement follows EDF’s board narrowly voting to build the plant in late July.

At the time, EDF’s shares spiked 10% following Clark’s announcement and better than anticipated first half results.

Delaying the decision, following years of negotiations between the French state-owned firm and the UK government, while redesigning the energy

market to ensure nuclear could be supported without breaching State Aid rules, has received a mixed reaction.

However, Clark said the government needed to “carefully consider all the component parts” of the deal. He also reiterated that nuclear was “an important part” of the UK’s energy mix.

The deal struck by the government with EDF has been variously described as necessary albeit expensive, to “an abomination that will blow up in the nation’s face”, according to Peter Atherton, now at Cornwall Energy.

Since the deal was negotiated in 2013, the cost to consumers has

Clark said the government needed to “carefully consider all the component parts” of the deal risen from £6bn to almost £30bn, according to the National Audit Office, due to government’s guarantee to make up the difference between the wholesale market price and the guaranteed

‘strike price’ of £92.50.

Since then, wholesale power prices have slumped.

Prime minister Theresa May will travel to China next month, a visit which may well coincide with a decision.

Investor ready energy efficiency for Liverpool NHS The Investor Confidence Project’s Investor Ready Energy Efficiency (IREE) certification has been awarded to a consortium of three NHS trusts in Liverpool: Aintree University Hospital NHS Foundation Trust; Liverpool Women’s NHS Foundation Trus; and The Walton Centre NHS Foundation Trust.

The £13m project aims to improve the energy and carbon performance of the three hospitals through the installation of a number of

6 August/September 2016

energy efficiency and low carbon measures. These include new gas-fired CHP energy centres and a range of energy efficiency measures such as new variable speed drives for motors, plant optimisation, and an extensive lighting retrofit programme.

The project developer is NHS initiative the Carbon and Energy Fund (CEF), which facilitates and manages the project. CEF is an investor and project developer of energy infrastructure

upgrades on behalf of the NHS and the wider public sector. The project investor is Macquarie Bank and an energy performance contract has been awarded to Engie (formerly known as Cofely), a leading contractor, specialising in decentralised energy.

Engie will construct, operate and maintain the measures, delivering guaranteed savings of c14,500,000 kWh annually.

This will result in annual savings of c£1.85m, with an average energy saving of 50% and an average carbon saving of 33% annually.

The project also includes avoided costs of £650,000 annually through the provision of a Short Term Operating Reserve and the replacement of essential infrastructure.

The construction period will be 18 months and the energy performance contract will be for 15 years.

Engie began construction in January.

The project’s Quality Assurance Provider is Verco Advisory Services. Working closely with CEF, they have together applied the Standard Tertiary protocol.

This process was carried out retrospectively, following the project’s financial close, and CEF’s documentation for the Liverpool project was found to be ICP compliant.

A comprehensive feasibility study, including building energy audits, was carried out by NIFES, working in conjunction with CEF. Baselines and savings calculations were developed for each NHS trust using CEF standard spreadsheet-based calculation tool.

With some minor adjustments to their processes and procedures, CEF hopes to achieve IREE certification for all future CEF projects.

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Limejump boss: Big six will have to acquire aggregators ‘or fall by the wayside’ Traditional utilities risk obsolescence in the face of more nimble competition, according to Limejump CEO Erik Nygard. He thinks they may not have much time to pivot their business models.

Nygard describes Limejump as neither a demand-side response aggregator nor energy supplier but a “next generation utility”. The firm holds a supply licence but does not yet supply much of its industrial and commercial customer base with power.

Within the next 18 months however, that is the plan.

In the meantime, it pays I&C firms as well as universities and schools in return for selling the flexibility in their energy consumption into various demand-side and balancing markets. It also buys and trades power from distributed generators and harnesses their flexibility to ramp up or down to make money from those markets.

Large utilities are also involved in balancing services, but Nygard thinks

they may struggle to adapt quickly enough to the customer-led model.

“They are trying to find ways to integrate this into their business models and looking at ways to give better value to their customers.

They are all looking at it,” he told The Energyst.

“The problem they will face is whether they have the ability to adapt and scale to the market changes. You never want to underestimate anybody, but on the large utility scale, their real option will be to acquire businesses to get there.

Getting there themselves is going to be a 10- or 15-yeartype game,” he added.

“If they wait that long, in my extreme personal opinion, a lot of them will just fall by the wayside.”

On the flip side, most of the big suppliers own relationships with hundreds of thousands of business customers. They also potentially have the data to see which customers are capable

The problem large suppliers will face is whether they have the ability to adapt and scale to the market changes Erik Nygard

of harnessing flexibility.

“That is true – and a number of them are making steps in the right direction.

At the Power Responsive [National Grid’s demandside response platform] event in June a lot of the big suppliers had stands. So you know the people inside

those organisations are looking at it,” said Nygard.

“They have the drive and the will to try and do it – but that is not going to be their problem. Their problem is actually going to be to deliver innovation through to the products that they offer.”

“If they can do it, then we would have significant competition coming at us. But I’m just not that concerned about that in the next five to 10 years.”

While other aggregators may disagree, Nygard thinks that demand response firms will ultimately have to acquire energy supply licences in order to access all facets of the market and maximise revenues for customers.

“Personally I think they will have to, or they would need to start providing far more sophisticated platforms that they can lease or rent to the big utilities,” he said.

“But that is a major technology shift versus where those aggregators are at today.”

Trading standards and police in BES Utilities raid National Trading Standards and Lancashire police raided the offices of business energy supplier BES Utilities and sister company Commercial Power in the last week of July in relation to allegations of mis-selling energy contracts to business customers.

As part of its investigation, Trading Standards officers also visited Fleetwood Town Football Club, where BES Utilities coowner Andy Pilley is chairman, and where some of the energy supplier’s offices are located.

Commercial Power, a network of energy brokers founded

by Pilley, was also raided.

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“Officials from Trading Standards and Lancashire Police visited the officers of BES Utilities in Fleetwood and Commercial Power in Bispham, Blackpool,” a spokesman for the companies said in a statement.

“We are fully cooperating with their enquiries and hope this matter can be resolved as quickly as possible.

“We would like to stress BES Utilities is open for business.

We apologise sincerely for any disruption customers experienced last week due to circumstances beyond our control and our teams are

addressing any issues which may have arisen from this.”

The raid comes less than a year after BES was hit with a penalty just shy of a million pounds by regulator Ofgem for bad practices. The regulator’s investigation found the supplier was treating customers unfairly by not telling them about important contract details. At the time, BES said it had “improved our processes” and “learned a number of vital lessons”.

BES has more than 40,000 non-domestic business energy customers, according to the spokesman.

August/September 2016

7

news & comment

National Grid calls time on the Demand-Side Balancing Reserve National Grid will not procure further reserve services this winter from demand-side response providers via the Demand-Side Balancing Reserve (DSBR).

In a notice to stakeholders, Cathy McClay, head of commercial operations at National Grid, said the system operator had analysed the bids from a tender for the service in June and concluded that “minimal volume would have been available over the period”.

Minimal volume would have been available over the period

DSBR is a transitional arrangement designed to ensure adequate winter capacity. It was created alongside Supplemental Balancing Reserve (SBR), which pays coal power stations to be available if needed.

Ahead of the capacity mechanism coming into play, SBR represents most of the 5% peak headroom National Grid estimates is available to the power system heading into winter.

Demand-side response

aggregators have said that the DSBR programme had merits, in terms of bringing forward new providers of demand-side response via a relatively simple programme.

However, they have also criticised Grid for running the SBR tender before the DSBR tender, rather than running them in parallel. They suggest the system operator thereby picked technology winners and secured extra capacity at a higher price than necessary.

Tesla: People will have to start engaging with energy bills Tesla Energy has warned that businesses will soon bear the full costs of a rapidly changing energy market. Meanwhile, the company has floated the idea of a UK battery production facility.

Jerry Hamilton, who heads up UK sales of its battery products, urged both businesses and households to wake up to the energy system’s shifting dynamic.

“You used to be able to have a 25-year plan in energy. National Grid’s report this year was so, so different to last year’s,” said Hamilton. “Do not underestimate the speed of change.

“Lot of businesses have not yet woken up to fact they need to change,” he said.

“Over next few years, we are going to be more aligned to having to change.”

Hamilton added that the same applied to households: “People don’t engage with energy bills. They are going to have to engage with them.”

Speaking at a Docklands event organised by energy software firm Utilidex, Hamilton would not be drawn on when the firm’s commercial scale energy storage unit would begin shipping in volume. He said that the “completely scaleable” Powerpack product was commercially available in the UK and that the firm was working with a select number of developers.

“We want to make sure that we are working with the right contractors and ensure that the experience is right. We are not a boom and bust company. So we are doing projects and we will upscale that.”

8 August/September 2016

Tesla Energy is working on a commercial scale energy storage unit Hamilton added that if developers “had a particular project and it is aligned with the right contractor, we will do it now”.

The commercial unit, at 100kWh, is 16 times larger than Tesla’s domestic Powerwall product. The company announced its first domestic install in February this year.

While choosing its partners carefully, Tesla is however taking orders online for the commercial product in the UK. According to its website, ballpark costs for a 1MW peak power system capable of providing power for four hours would cost about £1.5m including inverters, cabling and site support hardware. Or the same number of units could be configured to give two hours of output with a 2MW peak.

However, the cost would increase by about

£160,000 because the required number of inverters doubles.

Tesla’s Gigafactory would “produce over half the world’s use of Lithium-Ion” when complete, according to Hamilton, producing 50GWh in annual battery production by 2020 – enough for 500,000 cars.

“The more we make, the more the price will come down,” he said. “Our main aim is not to hold the price high. Everything that we are doing is to drive that price down to enable the transition to a sustainable future.”

Hamilton added that every Tesla battery sold would be recycled.

“We don’t know how yet but we are going to do it. The principle is there.

Everything in the battery at the end of its life is still valuable to us, the chemicals and the metals. We have designed the factory to bring the factory in and recycle them.”

However, he said that “it would be great” to have a Gigafactory in the UK “in 10 years’ time”, to reduce the significant carbon footprint of shipping all of those batteries back to the US. Hamilton said that solar PV generators would benefit from Powerpack deployment by shifting when they export power to gain higher returns. “If you can shift that by an hour, [the difference in returns] is huge,” he said.

Similarly, in a power system where intermittent generation is creating negative prices, “why not get paid to stick that in a battery?” asked Hamilton.

Sponsored column

Nick Hurd minister for climate change and industry The Department for Business, Energy and Industrial Strategy (BEIS) has confirmed that Nick Hurd is minister for climate change and industry while Jesse Norman is minister for industry and energy.

Hurd’s previous role was a stint as minister at the Department for International Development, his remit including climate and environment. Prior to entering government, Hurd was also a member of the Environment Audit Select Committee.

He served on the House Of Commons Climate Change Bill Committee and the Joint Committee on the Draft Climate Change Bill. He was a member of the Globe International Parliamentary network for Climate Change and sponsored the Sustainable Communities Act as a Private Members Bill.

With Greg Clark leading the department, BEIS has confirmed other ministerial

Hurd: remit includes climate and the environment roles: Jesse Norman is minister for industry and energy. Jo Johnson is minister for universities, science, research and innovation (joint minister with Department for Education); Baroness Neville-Rolfe, is minister for energy and intellectual property; Margot James is minister for small business, consumers, and corporate responsibility.

UK ranked number five in world for energy efficiency Germany continues to lead the world in energy efficiency, followed by Italy and Japan (tied for second place), France, and the UK (not reflecting energyrelated government changes in 2016), according to the 2016 International Energy Efficiency Scorecard published by the nonprofit American Council for an EnergyEfficient Economy (ACEEE).

On a scale of 100 possible points in 35 categories, together these countries represent 75% of all the energy consumed on the planet and more than 80% of the world’s gross

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domestic product (GDP).

ACEEE executive director Steven Nadel said: “Energy efficiency is often the lowestcost means of meeting new demand for energy.

Governments that encourage investment in energy efficiency and implement supporting policies save citizens money, reduce dependence on energy imports, and reduce pollution.

“Yet energy efficiency remains massively underutilised globally, despite its proven multiple benefits and its potential to become the single largest resource to meet growing energy demand worldwide.”

Boiler run-times don’t measure up Reduced boiler run-times on modulating and two-stage boiler plant do not necessarily equate to energy savings. The only accurate measures are a reduction in kWh or fuel consumption, says Tony Willis of Sabien Technology With many organisations having already implemented obvious energy-saving measures, additional so-called ‘quick fixes’ using retrofit technologies have considerable appeal. When they deliver on their promises, these technologies offer significant additional savings for a low capital investment with a short payback period.

The challenge is to ensure that such technologies will achieve the anticipated energy savings. A key element, therefore, is to understand how the technology works – and be convinced that the underlying technical principles make sense.

You will also need to be reassured that any such technology will not negatively impact the existing heating systems to which it’s being applied.

A good example of the need for the buyer to be wary is the control of boiler dry cycling, where boilers fire unnecessarily to compensate for standing heat losses, rather than in response to a genuine demand for heat from the building.

Over the last few decades there are have been several attempts to retrofit technologies to tackle boiler dry cycling. Most have been unsuccessful, in terms of either not delivering real energy savings, or interfering with other control strategies or both.

A case in point is the use of boiler/ burner run-times to demonstrate energy savings. Some technologies ‘work’ by ‘time delaying’ the firing of the boiler, so that over a period of days or weeks the overall run-time of the boiler is reduced. This is then presented as an energy-saving.

However, if a two-stage or modulating burner is being used (as is the case with most commercial and industrial boilers) the run-time is not indicative of how much gas or oil is being consumed. Indeed, delaying firing is likely to result in the burners

running at full capacity when firing is resumed to retain the original boiler temperature.

Run-time in this case does not tell you whether the boiler was firing at full capacity or was modulating at a lower capacity – and is therefore not necessarily a reduction in kWh or fuel saved.

Validation Other criteria for validating energy savings are also important. For instance, a direct comparison of boiler gas consumption between two years (eg the most recent winter and the one before it) does not allow for weather variation between those two winters. So this data needs to be adjusted using Degree Day information supplied by the Meteorological Office.

Where two different periods are being compared, it is also important to assess whether there have been any changes in building usage or to the thermal performance of the building fabric during that time.

Taking advantage of retrofit technologies, therefore, depends on selecting a technology that is based on sound engineering principles and ensuring the subsequent validation process takes account of any variable factors that might skew the results.

To that end, we strongly recommend that measurement and verification is carried out in line with the criteria established within the International Performance Measurement and Verification Protocol (IPMVP). Any technology provider should be able to help with this.

Further information visit sabien-tech.co.uk

Insight

Brexit pass-through charge hike?

Post-Brexit vote, LG Energy Group’s Ryan Gordon suggests we should expect an increase in pass-through charges and a higher cost of capital to weigh on electricity bills

C

aught between the classic energy trilemma of stable prices, security of supply and meeting international climate change targets, the UK currently finds itself faced with a new and unsettling challenge: what will the postBrexit regulatory environment look like?

The long-term policy objective is of course to tackle this trilemma, and due to the assured two years of uncertainty caused by Brexit (National Grid recently issued a report mooting a resultant cost of £500m a year), the government will be keen to bolster confidence by emphasising policy consistency, the investment-attractiveness of the UK and an eagerness to consult with industry.

While commodity markets have largely remained sideways, the biggest concerns are pass-through charges: DUoS, TNUoS, FiTs, the Renewables Obligation and the Climate Change Levy. A recent (pre-Brexit) Haven Power newsletter projected year-on-year increases for all five of these – a combined 47% of the commercial energy bill by 2017/18, with commodities only coming to 34% of the total cost. We should expect the post-Brexit upheaval to (in-part) result in increases to these pass-through charges, with the costs of decreased coupling and reduced crossborder balancing (settled

10 August/September 2016

There is a recognition across government now that we have a massive opportunity with the low-carbon transition

through EU codes) being passed on to consumers.

The biggest shortterm implication of the economic shock will be for the developers of new capacity, who may have been forced to factor the lower value of Sterling into their procurement costs. We should expect to see a scale of intervention that correlates with the extent of the economic downturn, especially when the predicted downturn impacts the key Conservative focus of affordability and security of supply. It may prove a difficult balancing act to maintain for a government that generally favours ‘light-touch’ laissezfaire regulation and reduced burden to industry, and with the abolition of Decc (merging it into the Department for Business, Energy and Industrial

Strategy), questions are now being asked about where energy and climate policy lie on the agenda, despite a surface assurance being given.

So where does this leave us?

Given the level of energy interconnectivity between the UK and EU, there is certainly shared interest in maintaining some form of internal energy market (IEM) model that retains its core functionality albeit does not require the free movement of labour, and as such can be sold to the British public (a variant of the ‘Norway scenario’).

Through such a hypothetical model, the UK would still enjoy the market benefits and have to comply with EU energy regulation as derived through bodies such as ACER and ENTSO-E, but likely not make EU budget contributions and as such, have no say in policy direction.

Whether EU officials can, for the sake of pragmatism, accept this ‘contradiction on the terms of the EU’ is still an open question that is slightly weighted towards refusal due to wider legislative barriers and the risk of EUexit contagion. Such a refusal of this would result in the UK being left to its very own ‘self-inflicted Swiss scenario’, in which the costs incurred due to fewer interconnectors, decreased market coupling and reduced cross-border balancing may be factored into pass-through charges.

The scale of regulatory change will largely hinge on both the extent of the economic downturn and which of these

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two directions is taken.

An oft-cited statistic is that ‘80% of environmental regulations in member states derive from EU law’, and what will be much more open for discussion, when the core ‘IEM question’ has been decided and the process of keeping/ repealing EU law begins, will be the success of these regulations in the context of the energy trilemma and broader unilateral objectives.

It should be expected that a cross-section of regulations will largely remain unchanged, such as parts of the aforementioned EU Directives; ministers, whether pro-EU or not, will still have to recognise that even strippeddown trade agreements with the EU still require compliance with its regulatory regimes.

Climate-change targets that have been derived through the EU may be dumped in favour of stronger domestic targets that aim to capitalise on the ‘make a success of Brexit’ push, and differentiate the UK from the remaining EU member states as a place for business; one important balance that the government will need to strike is how to make this

We should expect the post-Brexit upheaval to, in part, result in increases to passthrough charges.

Meanwhile, the biggest short-term implication will be for developers of new capacity, who may be forced to factor lower value of Sterling into procurement costs

differentiation without puttingoff investors who have enjoyed a large degree of regulatory harmonisation across the bloc.

Observing the recent government commitment to CCAs until 2023 and the decision to exempt energy-intensive industries from RO and FiT charges in order to protect international competitiveness, we may eventually see the UK implementing a ‘bestof-both-worlds’ balance of domestic and reformed EU legislation as a combined means of achieving this.

It is tantalising that the new secretary of the energy brief, Greg Clark, has previously played a key part in developing green policy by papering a number of strategies towards a low-carbon UK economy, and James Heappey MP, a member of the Energy and Climate Change Select Committee, commented: “There is a recognition across government now that we have

a massive opportunity with the low-carbon transition.”

Of course, this ‘progressivelyminded’ approach, aside from its vulnerability to anti-green Conservative backbenchers, still runs the very-real shortmedium term risk of investors simply opting for countries with less political upheaval, and in which the cost/benefit that arises from EU singlemarket access far outweighs that that would potentially be on offer in the UK, despite short-term attempts of the Treasury to counter diminished confidence. We already observe the French government making plans to capitalise on this uncertainty.

The merging of Decc into the BEIS sends a mixed-message to investors at a critical time and until initial reports begin to emerge from the negotiating tables in Brussels, a lot remains to be seen. However, what is clear is that mapping a favourable route through ‘Brexit’ will incur significant time and resource while carrying with it a considerable amount of uncertainty. te Ryan Gordon is compliance consultant for LG Energy Group lgegroup.com

T: 0333 7000 250 E: enquiries@pulsebusinessenergy.co.uk

www.pulsebusinessenergy.co.uk

Energy Buyer of the Year 2015

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August/September 2016

11

policy & legislation

Businesses want certainty but will BEIS respond?

A poll of 50 major energy users found most firms want certainty from the new business and energy department around energy efficiency incentives and the single reporting framework. Inenco’s Dave Cockshott calls for clarity

T

he whirlwind of change in Westminster this summer and the fallout of the Brexit referendum has placed uncertainty firmly at the forefront of minds once again. The future of the UK outside of the European Union, changing government departments, volatile markets and changing priorities all make for a jittery investor community. But what does it mean for business energy?

Inenco recently conducted a survey of business energy users, inviting them to have

12 August/September 2016

their say on the changes and state what priorities they felt the government should focus on as it forms the political agenda for this autumn and beyond. The results revealed mixed opinions on anything from climate change to Hinkley Point C but businesses made it clear that long-term certainty is top of the wish list. Eighty per cent called on government to prioritise a long-term policy framework in energy to bring forward crucial infrastructure investment to address future

security of supply concerns as well as enable businesses to plan ahead with certainty.

This concern also translated into a willingness for government to conclude its recent review of business energy efficiency taxes.

Some 71% called for a swift decision on what grants or incentives will be made available for energy efficiency measures and 62% are keen to find out what proposals will be put forward for the new single reporting framework that will be introduced in 2019.

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Strategic priority or afterthought?

The newly formed Department for Business, Energy and Industrial Strategy might hint at greater integration between business and energy policy, but the jury is out among business energy users.

Some 42% of respondents believe that the merge of Decc and BIS will shift energy higher up the agenda, but 34% felt that energy needs a dedicated department and may now become an afterthought. All eyes will be on newly appointed secretary of state Greg Clarke; having previously held the role of shadow secretary for energy and climate change, will his energy credentials translate into sound strategy?

Having signed up to the Paris Climate Agreement and made bold commitments to close all coal-fired plants within the next decade, clarity around the government’s climate change intentions was also a common theme in the survey.

Just under half of all respondents want government to prioritise outlining their approach to tackling climate change. Only a quarter of businesses believe the creation of BEIS will ensure climate change is embedded into business strategy; over half worried that it will now be deprioritised.

A framework for the future The need for clarity is hardly surprising: the one certainty in this industry in recent years has been frequent uncertainty. That’s why a long-term framework is so important – not only for investors but also for businesses to plan budget and strategy for the years ahead.

Only a third of businesses wanted government to push for a final decision on Hinkley Point C, so the decision by Theresa May to delay the deal until the autumn will have been welcomed by many.

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All eyes will be on newly appointed secretary of state Greg Clarke; having previously held the role of shadow secretary for energy and climate change, will his energy credentials translate into sound strategy?

Those who believe that the financial and technical issues surrounding the project means the UK would be better off with better value projects, from other new nuclear plants to decentralised options and renewables supported by energy storage, are likely to be optimistic.

While I am inclined to agree with them on Hinkley, the message this sends to investors and the implications for future security of supply could be a worry. National Grid’s most recent Future Energy Scenarios warned that the UK is unlikely to hit its 2020 renewable energy targets – predominantly because transport and heat are lagging behind power generation.

Looking beyond 2020, Grid expressed some doubt around the UK’s ability to meet our 2050 commitments without a low carbon strategy that goes far beyond the challenge to decarbonise power generation.

Government will be under close scrutiny not only to ensure it engages investors to avoid a post-Brexit hiatus, but also to make sure it sets out how it plans to revolutionise transport, heat and energy in the coming decades.

Taking control The good news is that there are still steps businesses can take during periods of uncertainty. It pays to control the controllable and keep a close on eye on the uncertain elements, managing risks now and in the future.

Focusing on areas within a business’ gift to control can still deliver big results. Rising noncommodity costs remain one of business’ biggest concerns, but there are charges that can be mitigated. Reviewing time of consumption can reap bigger rewards than addressing how much energy is consumed: shifting load away from peak demand periods not only avoids DUoS red bands and potential Triad periods but, from winter 2017/18, will also

ensure capacity mechanism costs are minimised.

Establishing an approach to demand management is fast becoming an essential component of any business’ energy strategy – it not only minimises charges but it also identifies the flexibility required to participate in demand response schemes, unlocking new revenue schemes as National Grid seeks to pay businesses to keep the system balanced.

Keeping abreast of market developments and understanding how they impact your individual business is also crucial. For example, Inenco’s monthly non-commodity dashboard details the latest changes to future forecasts, providing new figures to update future budget forecasts whenever new information is available.

Understanding new regulation and updates to existing schemes or other market changes can also make a big difference to your business’ utility management, whether that’s acting to make sure your business isn’t paying over the odds for new meter and capacity charges under P272 or lining up to take advantage of competition in the water market from April 2017.

Navigating the breadth, depth and pace of change can be complex and time-consuming, so working with an energy expert that understands your sector can pay dividends.

New prime ministers, government departments and changing strategies all send challenging signals to the market, and it will be important that government acts swiftly to provide industry and investors with the long-term certainty they need to plan with confidence for the future.

In the meantime, controlling the controllable and arming yourself with information is a sound strategy to cope with the question marks that loom overhead. te inenco.com

August/September 2016

13

Cover Story

Complete solutions ista is a global company and pioneer in energy and water management. ista in the UK is based in the technology city of Cambridge and assists landlords, property managers, owners, contractors and developers worldwide to meter, visualise, bill and manage their individual energy and water consumption

R

ecently ista UK has worked with a carbon neutral, new build residential development covering more than 85 acres in the south of England. This site has a centralised energy centre that distributes to the dwellings, all of which have meters to record consumption for billing purposes. Prior to ista taking responsibility for the metering services at this site there were issues with the effective collection of meter reads. This meant that many residences were billed purely on estimates, or not invoiced at all, which impacted on the collection of revenue.

When ista took over services at the site, a retrofit of all existing meters was undertaken. This approach, rather than a complete replacement, saw the minimum of disruption to existing residents. New, open protocol hardware was installed by ista, resulting in there being no need to replace the system if there are future changes to legislation, or service provider.

Arek Marut, operations director at ista UK, comments that “a professional approach to using open protocols gives confidence that any work undertaken protects for the future, and allows flexibility when it comes to appointing service providers�.

Using the latest in wireless M-Bus technology, data is collected from meters on a halfhourly basis ensuring there is no disruption for tenants and saving time, money and carbon

theenergyst.com

Using the latest in wireless M-Bus technology, data is collected from meters on a half- hourly basis ensuring there is no disruption for tenants and saving time, money and carbon

as engineers no longer have to visit site to read meters. From the start of the service a higher number of meter points were invoiced and a higher level of accuracy in those invoices was achieved, significantly reducing the number of estimates in the first month of service alone. ista does not only provide the hardware for metering services but the software too.

All data collected from the meters is integrated into our own web-based portals that allows transparency for energy data, reporting and billing via MinuteView and istaonline.

MinuteView collects heat, temperature, humidity and utility data, presenting it in easy to understand graphs, which can be interrogated down to individual meter

points. Management and monitoring are integrated into the system, with warnings delivered when pre-defined tolerances are exceeded.

Locally held, historic data can also be integrated for analysis into performance trends. istaonline provides a platform for the creation and management of tenant lists, heating and operational costs. Users can view credit and prepayment accounts and payment transactions.

Historic and current bills and energy data are also available to view for both property managers and residents. istaonline now has a CRM function, which not only allows property managers to contact ista directly, but also allows visibility of communications and case history between tenants and ista’s customer service team.

With changes to legislation increasing importance is being placed on accurate billing and energy management by tenants and property managers alike. ista is well placed to provide a solution for the whole variety of utilities, including electricity, gas, water and heat. Our robust, flexible solutions use the latest hardware and software technologies, backed up by a fully trained and dedicated team ready to assist whatever your metering requirements.

For more information, please email info@istauk.com, visit ista.com/ uk or call 01223 874974

August/September 2016

15

policy & legislation

Ofgem moots swift cap and cuts to revenues Ofgem has indicated it will move quickly to first cap and then reduce the payments earned by generators connected to the distribution network. The outcome of its review could have significant implications for companies with onsite generation, writes Brendan Coyne

O

fgem was asked earlier this year by the then Department of Energy and Climate Change to review the so-called embedded benefits regime, which makes up a large part of the revenue earned by generation connected to the distribution network.

The department believed that the current arrangements distort the capacity market because embedded generation, due to some of those revenues, could bid low in the auction, effectively pricing new-build large thermal plant out of the market.

Financial analysts have suggested that the auction outturn would have to more than double to sufficiently incentivise developers of new large gas power stations.

Ofgem is therefore reviewing the embedded benefits regime and looks set to change the rules – despite warnings it may simply drive up bills while failing to incentivise new gas.

The largest payment under the regime relates to payments to small generators from energy suppliers for turning on during peak demand Triad periods.

It is called the Transmission Network Use of System (TNUoS) demand residual payment and currently stands at around £45/kW, according to Ofgem.

The regulator predicts

16 August/September 2016

Ofgem looks set to change the rules on payments to sub-100MW distribution connected generators

Ofgem looks set to change the rules – despite warnings it may simply drive up bills while failing to incentivise new gas

that payment will rise to £72/kW by 2020. It is this element that Ofgem plans to cut, indicating that it will make its move so that the next capacity auction stands a chance of incentivising, for example, large new gas plants.

The regulator said it saw no benefit in delaying any rule changes later than 2019/20.

In the meantime, it also plans to stop the payments rising beyond the current level of £45/kW. Energy suppliers have already tabled rule changes around embedded generation payments. Scottish Power mooted preventing embedded generators connecting to the distribution network from

June 2017 from receiving TNUoS benefit. EDF has essentially proposed leaving the rules alone – except for generators that receive capacity market contracts.

Taking TNUoS benefits away from those with capacity market contracts would effectively solve that particular distortion, argued the firm. However, others have described the move as market protection, suggesting that a lack of grandfathering within the proposal would destroy market confidence.

Ofgem said it has also seen several alternative suggestions, but now wants industry views by 23 September before taking action. te

theenergyst.com

Power storage

Optimising through storage Buildings and facilities such as data centres are able to optimise their energy strategy and lower the costs of running the building with the advances in storage technology. Tim McManan-Smith met up with Eaton’s distributed energy management segment manager EMEA Louis Shaffer

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aton has partnered with Nissan (batteries) and AES (largescale storage market leader) to cover both grid scale and smaller industrial scale storage options. Partly because of the proliferation of renewable energy generation in Europe it is expected to grow rapidly. Eaton forecasts its EMEA market to reach around ¤6bn by 2024.

Battery storage is able to support the reduction of a businesses’ carbon footprint by optimising onsite renewables, however, building owners without renewables can also reduce their electricity bills.

Storage in many markets can generate revenues by providing grid ancillary services. As costs fall, many new applications are emerging, driven by unique market dynamics such as

UK grid challenges as spare capacity becomes limited. This use of batteries to aid demandside response programmes will allow new revenue streams to be exploited while ensuring continuity of supply.

Batteries will ensure backup of critical loads. “Batteries will not replace a gen-set,” comments Shaffer. “The cost is currently too high (about $300/kWh), but for short periods such as peak shaving or in the event of a power failure they are coming into their own.”

At present batteries are a power tool and not an energy one, although this has the potential to change as mass production from the likes of Nissan and Tesla to name just two, reduces costs further. Technology is moving fast. “In three to four years time you will get 30%

In three to four years time you will get 30% more capacity from the same size battery

more capacity from the same size battery,” says Shaffer.

What about people holding off investing because of the rapidly advances? Shaffer says that “many start small and trial it with the capacity to expand further as they go along taking advantage of any new developments”.

Shaffer believes that the energy market is changing and that distributed systems will win over centralised ones in the medium to long term.

“It happened with computers, with large mainframe systems being replaced with laptops, tablets and smart phones. Distributed wins over centralised when the technology is good.”

He says in the future “utility companies will be like banks are to money. It’s like BT in telecoms. They’re still there.” te eaton.eu/powerquality

First data centre in France with energy storage Eaton’s energy storage technologies, developed in collaboration with Nissan, have been implemented in host and telecoms operator Webaxys’ newly launched data centre in Saint-Romain de Colbosc near Le Havre, France.

Webaxys CEO Emmanuel Assié says: “In addition to relying on electricity generated entirely using renewable sources and the optimisation of energy efficient technologies already used in our first data centre, we wanted to go further and commit to reducing our energy dependency to minimise our environmental impact.”

Incorporating renewable energies such as solar power, which is, by its nature, intermittent into the operation of data centres, where power cuts cannot be tolerated, means that this energy has to be stored. Eaton rose to the challenge and, in 2013, helped launch the GreenDataNet consortium, which was financed by the European Community. Led by Eaton, the project aims to develop new technologies enabling the creation of smarter, more energy efficient urban data centres.

In late 2015, Eaton entered into a partnership with Nissan to deploy energy storage and management solutions in a commercial environment. Nissan batteries, which are used at full capacity in the Leaf saloon are given a new lease of life in this application. This eco-responsible approach helps to maximise the use of batteries before they are recycled, minimising the use of natural resources.

The new Webaxys data centre incorporates solar power and an optimised air-to-air cooling system. All the infrastructure equipment for the data centre was supplied by Eaton.

18 August/September 2016

theenergyst.com

demand-side response

Battery storage: Positive outlook?

Costs are falling but batteries are still expensive. Bankable revenues are hard to come by and developers want more routes to market. But others believe they are commercially viable today.

Brendan Coyne reports

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nergy storage is seen as the answer to balancing intermittent generation.

Batteries are particularly valuable to National Grid because they offer sub-second frequency response. Costs are falling and investors and developers appear to have significant appetite.

National Grid has created a market and the first

20 August/September 2016

enhanced frequency response tender, due to be decided 26 August, a few days after this article went to press, was massively oversubscribed.

More than 1.3GW prequalified for 200MW on offer.

Solar appetite A degree of that appetite was from solar developers, who have seen their markets pummelled by

subsidy cuts. Batteries and solar PV are also highly complementary technologies.

But batteries as still very expensive and most of those prospectors find themselves without an EFR contract.

Market participants have called on National Grid to outline a route to market to maintain momentum. “It would be a shame if that interest disappeared,

theenergyst.com

because it is hard to regain momentum,” says SmartestEnergy’s Robert Owens. “Over the last nine months we have gone from hardly anyone talking to us about batteries to a pipeline of 800MW-1000MW. In such a short space of time that is virtually unheard of.”

Currently, cost versus bankable revenue is a market barrier both for businesses and investors. They have to work out how to stack revenue streams and take on a degree of risk.

But some market participants believe batteries are a viable opportunity today, with or without an EFR contract, due to the flexibility they can both provide and unlock.

Unlock other assets Most market participants see batteries and demand-side response as complimentary technologies.

“Because of the raw flexibility in the battery, it can do whatever you tell it to do – anytime granular speed of response,” says Limejump CEO Erik Nygard.

“Combining a battery with DSR or generator means we can unlock a lot more flexibility from those asset types. An asset that I cannot turn on or off very frequently does not have much value on its own. But putting a battery alongside that asset allows me to create a new product to unleash value, because they are now working together to deliver something much more proficient to National Grid.”

Nygard says Limejump currently uses batteries alongside solar PV to provide frequency response services, among other revenue streams.

Shorter odds Kiwi Power CEO Yoav Zingher thinks that combining batteries and DSR will bring down costs by enabling much smaller batteries to be used.

theenergyst.com

Robert Owens: “Positive momentum must be maintained” Erik Nygard: “Combining batteries with DSR can unlock more revenue streams” Yoav Zingher: “Combining DSR and batteries can reduce set up costs” Pieter-Jan Mermans: “Battery operators will need DSR technology and software and vice versa” Chris Kimmett: “Brexit vote has pushed battery prices up 10% ‘almost overnight’”

“You can make do with a battery with a shorter duration as well,” he says.

“Instead of building a battery that can deliver an hour’s worth of response, you can use a battery that delivers only 10 minutes of response and provide the rest with DSR, which can’t deliver response so quickly.

So we think if you design the market well enough you can get more benefit from both.”

Zingher thinks there will be a “huge amount” of battery storage deployed as prices fall.

Homing in Restore co-CEO PieterJan Mermans agrees that batteries are a “huge opportunity” for DSR – and not just for the commercial and industrial market.

Restore, he says, will ultimately move into the B2C sector, with batteries likely to play a key role.

“We operate in Germany, where more than 10,000 batteries have been installed, with the primary purpose of balancing solar electricity.

People are looking at how to wrap them up into a 50MW block to offer to the TSO,” he says.

“From our point of view, that is exactly the same question as aggregating 50 pumps or compressors. So that is where the complementary aspect sits. Battery operators will need DSR technology and software and vice versa.”

Chris Kimmett, commercial manager at Open Energi, says some firm frequency response (FFR) providers are looking into battery storage because of the complementary nature to fast response services.

He thinks behind-themeter applications face little in the way of regulatory barriers and will work if asset owners can make the business case stack up.

“I think the price has come down to the point where it is starting to make sense

to buy batteries,” he says.

But Kimmett also points out that the Brexit vote and subsequent fall in Sterling has pushed prices back up by around 10%.

Despite that, he says it is “still an interesting place to invest”.

Sam Scuilli, regional director, international sales at Enernoc, agrees that it is “not too soon” to start looking at batteries. Like fellow aggregator Restore, Enernoc is active in Germany and agrees that the rapid deployment of batteries is because they are “perfectly suited” to some of the ancillary services within that market.

But he says they are just one tool for National Grid.

“It all comes down to economics. Batteries are specifically suited to fast response. But if you have a major capacity shortfall, there is probably not enough batteries that are going to help with that,” says Scuilli.

“That is where you need the broader capacity market or the whole Triad structure, which is designed to shift significant amounts of load.”

Market correction Flexitricity chief strategy officer Alastair Martin agrees batteries “will find their niche”.

But he thinks there will be a lot of disappointed developers.

“There has been a lot of noise and a massive rush – far in excess of what the EFR tender aims to stimulate. We are going to see a correction as a result,” says Martin.

“We have double-digit gigawatts of batteries in the planning system, the majority backed by people who believe that there is a frequency response contract waiting for them. But there isn’t a double-digit requirement for frequency response. It doesn’t exist,” he says.

“So we are going to see a correction in that market. After that, the lithium type batteries »

August/September 2016

21

demand-side response are going to find their niche and perhaps we might then see other battery technologies coming forward, which will pursue a different niche.”

Cannibalistic?

Baringa Partners manager, Eamonn Boland, thinks batteries have a bright future – but he sees them as cannibalistic to DSR rather than complementary.

“Batteries and DSR are in direct competition. If I were an investor I would see that the DSR market today offers a price of X. But I am seeing quite a large interest and volume of new entrant batteries coming into the market that can do exactly what I can do, be built at scale,” says Boland.

That will put pressure on prices in frequency response markets, he believes.

“You can easily get to a point where that X value drops quite significantly, quite quickly. So you have a degree of uncertainty over revenue because of the competition coming from high volumes of batteries that are expected to come into the market.”

Batteries will start to spill out from FFR markets and into lower value markets as their prices fall, Boland believes, enabling new business models to emerge.

But for now, he says it is difficult for investors to place sizeable volumes of capital into development because of revenue uncertainty.

“You are confident that there is a need for flexibility and there is quite a high value to the response times of batteries. But some people see the breadth of revenues they could provide as revenue diversification and others see it as compounded risk,” says Boland. “So I think that is interesting for batteries.”

A bidder’s view Origami Energy took part in the Enhanced Frequency

22 August/September 2016

Sam Scuilli: “If you have a major capacity shortfall, batteries aren’t going to cut it” Eamonn Boland: “Batteries are in direct competition to DSR” Alastair Martin: “Batteries have their place but a market correction is coming” Simon Wilson: “Being able to be flexible and respond to market changes matters”

Richard King: “What is the cost of loss of power?

If you know that cost, you can monetise it”

Response auction. Simon Wilson, the firm’s storage lead engineer, says the mere fact National Grid has created a market is breaking down barriers. Even if the company does not secure an EFR contract this time around, he thinks that having the auction values will be useful information for investors in storage projects.

Ahead of the auction results, Wilson believes there are improvements that could be made for the next tender.

As things stand, the market favours larger developers, he suggests: the bid bond per megawatt was increased from £2k to £5k midway through the process.

“We are a small provider and that was a hassle factor,” he says.

Because the EFR service was essentially being developed on the hoof, technical parameters also emerged as the process progressed, says Wilson.

The requirement for a double circuit connection became a single connection, while “overly complex” ramp rates and duration requirements were also fluid.

Wilson thinks that the duration requirement of 15 minutes in either direction was more than the service needs, leading to costs being “slightly greater than necessary”.

But he points out that it is an iterative process and is optimistic that technical parameters will be more concrete for the next tender round.

Overall, Wilson thinks the level of interest in EFR will lead to a “tight economic case”, because the four year contract length has struck a balance between security of investment and keeping options open to National Grid – at least this time around.

But he also thinks that locking providers into EFR is a missed opportunity.

“You can do multiple things with your site but if you are

contracted for EFR, you must do it, so you can’t switch to a merchant model. If there was a price spike for example, you can’t then use your storage to meet that,” he says.

“The problem with energy storage is that you generally have to knit together a few revenue streams. So being able to be flexible and respond to market changes matters.”

The battery business case ‘already stacks up for I&C firms’ “It is not a small investment decision,” but the business case for battery storage already stacks up, according to Richard King, of energy management engineering firm Powerstar.

King says peak shaving for DUoS and Triad combined with frequency response revenues are in some cases secondary to the value of an onsite UPS “to cover the ‘microcuts’ we are increasingly seeing on the system”.

Combining the three elements makes a commercially viable proposition, he says, but early investors in the I&C sector are likely to be those who understand the value of lost load to their business.

“What is the cost of loss of power? If you know that cost, you can monetise it – and it can be worth a great deal.

If you are part of a supply chain, you may face very punitive penalties,” says King.

“Everybody has critical systems that they cannot do without,” he adds.

“The ability to respond to a power shutdown within 20 milliseconds is very valuable – as are cutting network costs and generating income from frequency response.” te This article forms part of The Energyst’s 2016 Demand-Side Response report, published 8th September. Readers can download the report at www.theenergyst.com

theenergyst.com

Demand-side response

Can National Grid hit its 2020 demand-side response target?

National Grid has set an ambitious 2020 target for demand-side response.

Can it deliver, asks Brendan Coyne

I

n June last year National Grid committed to procuring 30-50% of balancing services from demand-side sources rather than power stations. Since then the system operator has embarked upon a major engagement push.

For the second phase of its Power Responsive campaign, Grid has promised to turn engagement into action.

The hope from much of the demand-side response sector is that it will make the balancing markets easier to access.

While the energy system is changing more rapidly than ever before, scaling the demand-side response market to that level will be challenging, particularly if National Grid’s spend on balancing services doubles to £2bn during that time frame.

Can the system operator and the demand-side response sector achieve that scale over the next four years?

“It will be difficult,” says Eamonn Boland of Baringa Partners.

Intense competition He thinks part of the reason is that it is difficult for aggregators to acquire sizeable portfolios.

Intense competition for the same large I&C-type multisite customers and the cost of sales for bringing smaller companies into the balancing markets can be prohibitive.

“If [aggregators] are having to go round to 30 or 40 parties each with a half megawatt

24 August/September 2016

If [aggregators] are having to go round to 30 or 40 parties each with a half megawatt in order to build a 15-20MW portfolio, that cost is very high Eamonn Boland, Baringa Partners

As long as revenues are there, challenges are addressed and we go about it with the customer at the centre, I really don’t see why that target can’t be met Philippa Hardy, Delta-ee

We think that is a terrific target, but we should have annual targets leading up to that which are reasonable so that we can measure progress Yoav Zingher, Kiwi Power

in order to build a 15-20MW portfolio, that cost is very high,” says Boland. “Because you are doing it on a site-by-site basis, bilateral negotiation, bringing those people up to speed on what are complex products and potentially complex offerings.”

While many in the industry call for simplification of the market by policymakers and delivery bodies, Boland is unsure it would make much difference.

“It is difficult to see how that could change from a regulatory or policy standpoint other than the market just becoming more informed,” he says.

“Then if those 30-40 individual sites are more open to the conversation with aggregators then the cost of sales would decrease.

But we are not there now.”

messages from market actors.

However, she thinks that those barriers can be overcome.

“I’m optimistic that we can meet the target because the UK market has lots of innovators and we are seeing increasing interest from a wide variety of well-resourced companies that are currently not active in demand-side response. It is quite a lively space,” she says.

“As long as the revenues are there, challenges are addressed and we continue to go about it with the customer at the heart of it, I really don’t see why that target can’t be met.”

Bad experiences will hinder

Customer barriers Philippa Hardy, senior analyst at consultancy Delta-ee, agrees that there are challenges in bringing more business into balancing. Customer awareness remains an issue, she says. Complexity, trust, time and effort are also barriers from a customer perspective – which she says are compounded by mixed

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“We think that is a terrific the market, says Hardy. “But so target, but we should have far, that has not been the case.” annual targets leading up to Jon Ferris, a director at TPI that which are reasonable firm Utilitywise, believes the so that we can measure 2020 target could be hit – but progress. It is really important questions the definition of that National Grid does ‘demand-side response’. that,” Zingher says.

“How much comes from Cordi O’Hara, director, behind the meter generation UK system operator and how much from turn at National Grid, down is probably said at this the pertinent summer’s Power question,” he Responsive says. “I think event that it might be targets for a stretch.”

National Grid’s expected specific spend on balancing technologies Significant services by 2021 “imply change technology Perhaps more winners” and pertinent, says ran “contrary Ferris, was how to competition and a much National Grid would level playing field”. have to spend on balancing Instead, Grid would work services over a period of on simplifying products significant market change. to improve balancing Quoting National Grid’s market access, she said. head of electricity network Association for Decentralised development, The Telegraph Energy director Tim Rotheray recently put that spend thinks targets tend to be at £2bn by 2021, about unenforceable – pointing to double today’s cost. the fact that the Renewable If that is the case, said Energy Directive has been Ferris, “then 30-50% is going effective, at least for electricity, to be a pretty tough target”. because of the threat of Yoav Zingher, CEO of external enforcement. aggregator Kiwi Power, “I’m not a great fan believes National Grid should of targets. What is more set interim targets – and hold important is taking forward itself accountable to delivering the commitment that has them: “We think it is vital been made and testing to see – because if you don’t have how things work,” he says. a target, we are just going “Rather than spend time to see the same results. And coming up with numbers that is bad for consumers.” and targets, just spend time Does the 2020 target doing the real work.” te itself not count?

£2bn

theenergyst.com theenergyst.com

Think your assets can’t provide demand response? Think again and unlock revenue Louis Burford, vice-president of REstore UK, says even small amounts of process flexibility can provide significant income for I&C businesses Many industrial and commercial (I&C) companies believe their equipment and process are not suitable to provide demand response services to National Grid.

But REstore employs in-house industry experts who have been on the ‘other side of the fence’.

Their knowledge of industrial processes enables REstore to identify pockets of flexibility within most operations. They help businesses monetise that flexibility through National Grid’s various demand-side response programmes – and share potentially significant revenues.

It is true that the assets REstore harnesses were never designed to provide demandside response. But the patented technology allows them to deliver their core function as well as participate in balancing services provision without impacting the former.

Because REstore aggregates a large pool of assets and sites – more than 125 of Europe’s largest I&C firms use the in-house Flexpond platform – it means that even the smallest pockets of flexibility can be turned into

revenue for businesses. REstore has secured the largest demand side Dynamic Firm Frequency Response (dFFR) contract in UK, competing with large power stations, but in a cleaner, more reliable and more cost effective way.

Dynamic Firm Frequency Response, for example, is one of the highest value balancing services. This requires equipment to be turned up or down automatically for just a few minutes at a time and on average for less than two hours per year. REstore can set parameters so that even plant with very limited availability can participate.

For companies that do not yet provide demand response services, we recommend investigating the market further and taking that first step. Establish a small trial, implement it, be rigorous, make that project a success and take it from there. With the right technology, intelligence and boundary conditions in place, DSR provision will not affect operations or productivity.

You might find that your assets are worth significantly more to your business than you realise.

Find out how we help Europe’s largest businesses cut costs and generate revenue at REstore.eu

Demand-side response

Flexibility: Firms can be paid to balance renewable power Dong Energy has a huge portfolio of intermittent wind generation. Now it pays customers to help reduce its increasing balancing costs. Jeff Whittingham outlines the opportunity for firms

M

onday 9 May 2016 was a historic day for the UK electricity industry; the nation operated its generation infrastructure entirely without coal – for the first time since 1882. Not only that, but all the way until the following Sunday lunchtime our system was using no coal-fired generation for almost a third Amount Dong Energy of the time. wil have invested in UK It was an ‘trilemma’ – the energy infrastructure important need to balance by 2020 milestone. The sustainability, UK has been affordability and working towards security of supply stretching carbon reduction – during the development targets for a number of years of Electricity Market Reform. now, the most prominent Contracts for Difference and being an 80% reduction in the Capacity Market were carbon emissions by 2050 introduced to support this based on 1990 levels – and balance, both of which are now decarbonising the energy starting to get established. sector is a core component in achieving this target.

Price constraints We have witnessed significant An increase in renewable investment in renewable generation volume had made it generation within the UK. In easier for businesses to access fact, Dong Energy alone has green energy and support their invested £6bn in the UK energy own environmental credentials infrastructure since 2004, with and carbon reduction targets. another £6bn committed out Previously, the decision for to 2020. Overall offshore wind businesses to ‘go green’ was contribution grew by 30% an easy one as it came without last year and total renewable any additional cost. This is generation represented a quarter because businesses buying of all installed generation renewable electricity could in the UK. This percentage gain exemption from tax by continues to rise steadily as purchasing Levy Exemption the industry transforms to one Certificates, making green energy that is far more sustainable. an equivalent (or occasionally It has not been an easy ride lower) cost to ‘brown’ energy, for the energy industry, though. which is subject to Climate Much was made of the energy Change Levy. However, April

Keeping the lights on will require a more flexible system

£12bn

26 August/September 2016

The industry must unlock business flexibility to provide that ‘control switch’ in managing everything from unexpected power plant outages to changes in weather

2015 saw George Osborne announce the abolishment of Levy Exemptions in the Budget and by August last year, green was once again a sustainability choice for businesses.

While this made good budget sense for the government, it was a real blow for businesses striving for sustainable operations in the face of tight budgets and fierce competition.

In April this year, Dong Energy made the decision to invest on behalf of businesses and offer green energy for the same cost as brown. This bold move enables renewable energy to be accessible to all businesses, helping them work towards sustainability ambitions without commercial disadvantage.

Having the right generation mix in place is only part of the puzzle, though. Going back to that trilemma, the industry needs a way of managing a more challenging system-balancing task without incurring vast costs (which, of course, are ultimately passed on via energy bills). To really make the ‘new’ system work, the industry must unlock business flexibility to provide that ‘control switch’ in managing everything from unexpected power plant outages to changes in weather.

Crucial role It is well documented that unlocking flexibility among large consumers is pivotal in managing the complexities of system balancing and keeping overall costs down.

With business use accounting for more than half of the UK’s overall consumption, it is

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ScottishPower launches Commercial Energy Portal no surprise that this is a key area of focus for the sector.

It makes sense for businesses too. This increased attention on business flexibility happens to nicely coincide with an evolutionary journey in energy management for many organisations. Companies have been working on reducing consumption for several years, meaning that the majority of costfree and inexpensive options are exhausted. Therefore, alternative energy management tools that provide incremental value have become more interesting.

Managing consumption flexibly can provide two-fold benefits to businesses: avoiding expensive peak cost periods and generating new revenues via scheme participation.

Power collaboration In recognition of the role businesses play in keeping the electricity system optimised, we have seen National Grid launch Power Responsive – a collaborative initiative looking at how best to deliver balancing solutions at scale by 2020. I am fortunate to be a member of the steering committee for this initiative.

Linked to this, we have witnessed huge innovation in the field, which has made flexibility an option for all.

National Grid alone now operates a whole host of reserve and frequency response schemes comprising a range of minimum volume and speed of response requirements.

Aggregators play a role in supporting those businesses with flexible volume that falls under minimum requirements, meaning that smaller companies can participate too.

Independent schemes, such as Dong Energy’s Renewable Balancing Reserve, also enable businesses of all sizes to earn money from their flexibility without the commitment associated with some of the other demand-side response schemes.

One of the challenges expressed by our customers is

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the ability to truly optimise their energy portfolio in the face of diminishing internal resource.

In response, our research and development function has been investing in advanced tools that support energy flexibility. This resulted in the launch last year of our Site Optimisation and Energy Vision solutions. They are designed to take the pain out of identifying the best times to import electricity, turn down, switch to onsite generation or export electricity by instantly combining real time market data with specific customer plant data, producing optimal run schedules. This helps business customers harness more value from their plant, without the need to dedicate huge quantities of time analysing volumes of data.

Embracing flexible demand is not just about earning new revenue from participating in demand-side schemes. It can also be a big help in combatting rising non-commodity costs.

By being a little smarter about the times you consume, it is possible to avoid more expensive transmission and distribution periods. As these typically represent about 20% of the average electricity bill, there is potential for very tangible savings. Tools like Site Optimisation make managing this activity much easier for time-poor energy managers.

The UK is making good progress in decarbonising the energy system and milestones like the first zero-coal day are really heartening in what is frankly a challenging task.

Initiatives like Power Responsive really help to pull industry parties together to collaboratively develop solutions fit for our emerging sustainable energy sector. It is great to see so many businesses engaging in this debate and keen to get involved. By working together we stand to build a much ‘smarter’ energy infrastructure. te Jeff Whittingham is managing director at Dong Energy Sales UK Dongenergy.co.uk

Innovations and improvements to online account management services are enhancing the customer experience in the commercial energy sector. Business improvement manager at ScottishPower Danny Parr discusses the launch of its new Commercial Energy Portal In a world where our industrial and commercial customers are increasingly pressed for time, ScottishPower’s job is now more than just providing energy.

We have a growing responsibility to deliver innovative services to business’ which help them to make better energy choices and efficiencies where possible.

That’s why we’ve launched our new Commercial Energy Portal to make energy management as simple and as clear as possible. The portal provides a convenient way for companies to monitor and stay in control of their energy – saving them time and, most importantly, money for their business.

Putting the customer in control Designed to be an invaluable resource for industrial and commercial energy management, the portal is easy to use and gives business customers and third party intermediaries complete access to all of their energy account information and advice in one place.

Customers can view and update their account online; track bills and payments, add a new site or facility, note a change of tenancy, provide a new connection and even terminate supply to a site.

It also comes with a variety of useful features such as all of the latest commercial energy news available through a live Twitter stream; while a ‘Hot Topics’ section provides useful industry insights.

In addition, ScottishPower also endeavours to help companies save money, via an email Triad Warning Service. Triads are used to calculate fees each customer pays to the Transmission Network Use of System (TNUoS) to help maintain the National Grid.

Triads are the highest halfhour periods of system demand between November and February each year and using energy at these peak times can be costly.

By subscribing to Triad warnings, businesses receive an alert once

a peak time is forecast, allowing them to adjust their energy usage during the triad and reduce the fees they pay.

Tracking daily consumption

Resources to monitor a business’ day-to-day energy consumption via the portal are also available to help track daily, monthly and yearly energy use. A simple ‘Red, Amber and Green’ (RAG) system provides clients with the data they need to adjust energy use during peak times when high distribution charges apply.

These metrics give a clear analytical breakdown on energy consumption alerting customers to the amount of energy spent during the most expensive time of day to help them manage supply accordingly.

ScottishPower’s Commercial Energy Portal provides an innovative online solution which allows our commercial customers to take control of their energy expenditure. By making energy choices clear and simple, we are helping businesses to drive efficiencies and save money.

For further information on the portal and services available to commercial energy customers, please visit: scottishpower.co.uk/ commercial-business

Esos update

Will non-compliance cost you?

The Environment Agency says fines for Esos non-compliance will be a last resort, but Utilitywise’s Samuel Davidson reckons it’s not worth the risk

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he Energy Savings Opportunity Scheme (Esos), aimed at improving the energy performance of business across the EU, has been criticised for its complexity and more so than ever with the fines that business could incur coming into force.

Esos came into play in July 2014, aimed at improving the energy performance of business across the EU. The criteria for the scheme was either having more than 250 employees or a turnover above £38,937,777 with an annual balance sheet total of more than £33,486,489.

This has affected more than 7,500 companies in the UK. While there are a number of actions or prosecution. In the penalty of organisations very worst case, organisations £50,000.

The potential cost of that still need failing to undertake an Esos The non-compliance to comply, the assessment and/or making a calculated to businesses? majority that have false statement can be liable for £85m potential entered the scheme a fixed penalty of £50,000 and/ cost of nonhave highlighted or £500 a day until compliance compliance is a number of ways notification is received. set to send shock companies can save energy.

Following the distribution waves across the industry. of non-compliance letters our With more than 1,700 nonConfusion in compliance Energy Services Team has compliance notice letters being The complex nature of received a number of requests issued by the government, for the scheme and often from businesses to assist those businesses that ignore confusing compliance has with their compliance to help these letters, there is plethora resulted in a number of mitigate the risk of fines. of options available to the businesses struggling to One customer would enforcement agencies which comply and some ignoring have expected a fine of range from financial penalties the legislation altogether. £90,000, which to put this and fines to injunctions, civil It is estimated that almost a quarter of businesses From the 200 phase one audits are yet to engage with the carried out by Utilitywise, we process, and many that have actually done so have yet to identified that businesses acting even submit compliance. on Esos recommendations Organisations failing to could create 213GWh related to undertake an Esos assessment electricity consumption alone could be liable for a fixed

£85m

28 August/September 2016

Alarm bells should be ringing for those businesses that still need to comply with Esos, reckons Utilitywise

into context, equates to its total annual energy bill.

Businesses may have budgeted for the average £7,500 cost to comply but they most certainly will not have budgeted for the potential fines that the enforcement agencies could apply.

Why Esos?

Esos was intended to create a mechanism whereby large businesses conducted regular organisation-wide energy audits in order to identify savings that could be practically implemented both from a cost and feasibility point of view.

The requirement for a board director to sign off the Esos report was created specifically to engage businesses at its most senior level with the intention to drive efficiency from the very top.

The introduction of Esos caused great concern to businesses and no more so than those captured by Esos legislation that have previously been exempt from climate change regimes such as CCA, CRC and EUETS. Businesses outside of these frameworks, experienced considerable difficulties in collecting quality and complete energy data, presenting significant challenges, especially around transport and fuels.

There was also the lack of engagement and understanding from

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Total Energy Management businesses around the Esos legislation and some saw it as more red tape over and above the CRC, CCA and EUETS carbon policies.

With Esos phase two currently under way we want to help educate businesses on the huge benefits of Esos and the financial savings they could reap.

From the 200 phase one audits carried out by Utilitywise, we identified that businesses acting on Esos recommendations could create 213 GWh related to electricity consumption alone and therefore not only equate to a substantial cost saving but cause a profound reduction in future UK electricity generation requirements.

Assistance for businesses To assist businesses in gearing up for phase two, we are offering a guarantee on compliance by 5 December 2019 for those that provide data to our team before 5 December 2017.

Working with our team ahead of the deadline will enable businesses to make Esos a useful exercise, giving your organisation enough time for the process to be more consultative and therefore beneficial, rather than passive and redundant.

There is a valuable outcome from implementing the recommendations of the Esos audits. However, the barrier is often the capital investment in technology, which is often seen as too high a risk for many companies.

We believe UK government could do much more to

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alleviate these risks and provide businesses with the support needed to meet their energy challenges.

From our own internal research we have seen that, where energy efficiency grants have been provided, more than 90% of customers install the recommendations; this falls to just under 10% with normal energy financing models.

Should financial grants be provided towards these energy efficiency measures, then the impact on business and the wider energy system would vastly outweigh the benefits of subsidies for new nuclear, for example.

Esos legislation will remain a piece of UK law and the Energy Services Team at Utilitywise is encouraging businesses to actively participate in the scheme now. The little discomfort and the associated cost to business now will dramatically reduce if businesses act on the recommendations of the audit and implement energy management systems that deliver savings to business and provide a platform for the next phase.

Businesses need to take note as, regardless of the isolation of the Esos policy, legislated requirements on business to measure energy consumption are here to stay and the more this is ignored the greater the risk and cost this will pose.

Ultimately business will have to measure their energy use and report on it. te Samuel Davidson is head of consulting operations at the Energy Services Division of Utilitywise utilitywise.com

The modern energy professional has to be an expert in technology, procurement, risk management, finance, behavioural change, demand response and energy reduction strategies while getting to grips with an alphabet soup of market mechanisms, legislation and regulation. However, there is help at hand.

Energy management is changing. In the past there were energy managers, predominantly engineers, tasked with helping an organisation to reduce its energy consumption. Then there were procurement professionals who, often as part of a wider remit, purchased energy. The energy professional is increasingly being asked to become both these things – and more.

As well as being able to manage energy consumption, they have to construct business cases, understand financial imperatives and be fluent in communication and marketing to bring the broader workforce onside. Then they have to navigate complex data in order to comply with numerous rules and regulations – and become perfect timekeepers in order to keep up with paperwork. The management of both procurement and the efficient use of utilities is a complex and ever growing list of areas that an energy professional needs to master and this omits the more subtle developments in behavioural change and finance to name only a couple.

Finding individuals with such diverse skillsets is not always possible, leading to a team approach. In this wider team a skilled outsourced consultancy can be a godsend. The Dutch football team’s total football in the 1970s sounds brilliant but can only be done with the right set of players and has been impossible to replicate. You need 11 talented individual to make this work. In most cases total energy management in the modern business needs a focus on such diverse areas the cost

“The Dutch football team’s total football in the 1970s sounds brilliant but can only be done with the right set of players and has been impossible to replicate” effective thing is to buy in the best expertise will deliver best returns.

Here at Ignite Energy, we work to provide complete business energy solutions to make sure you’re in control on how much you’re spending and how it is being used.

Covering the energy value chain from wholesale procurement, through billing management, finance support and reporting, metering and delivering projects to reduce energy consumption. Combining expertise in all these areas allows us to deliver greater benefit to your business.

Working at every level, we offer business energy solutions that focus both on helping you understand and meet your current best achievable level of performance, and make further improvement through investment in energy saving technologies.

Total energy management can be achieved but sometimes even the best teams need a super-sub.

Contact info: Rob@igniteenergy.co.uk T 0845 269 9517 M 07771 864690

gas & Electricity

Half-hourly settlement for all With Ofgem announcing the extension of the mandatory move to half-hourly settlement for all consumers, Opus Energy outlines what it means for businesses

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monumental project that has been facing the business energy world during the past few months is the switch to half-hourly settlement (HHS) for almost all customers.

Now, the remaining customers – including smaller businesses and domestic consumers – are being told they will need to come on board as well.

Up until now, only Profile Classes 5-8 have been affected

by P272, the set of Ofgem regulations designed to bring the buying, transport and selling of electricity closer into alignment. Starting autumn 2015, almost all non-domestic customers with half-hourly capable meters began making the switch, beginning with those whose contracts were coming up for renewal.

Monumental effort No supplier has been exempt from this mass-migration of customers, so it is fair to say this has been no small feat for the UK energy industry.

Now, Ofgem has announced the start of an extension of the regulations to include Profile Classes 1-4. This means that all energy usage data from domestic and the remaining non-domestic classes (Unrestricted and Economy 7) will soon move to being measured halfhourly, overhauling electricity settlement arrangements as we know them.

Intentions are to open a Significant Code Review into how the rest of the country should be moved, which will culminate in a two-phase

30 August/September 2016

Electricity settlement arrangements are being overhauled with an extension of the regulations to include domestic and the remaining nondomestic classes

Suppliers already purchase energy in half-hour blocks.

Turning around and selling them in the same increments is a logical next step

plan: firstly, to remove any barriers to elective HHS for any suppliers who want to embrace it early on; secondly, the mandatory stages of HHS will be rolled out to ensure all customers receive the full benefits of the changes.

While all UK suppliers have been busy instigating the changes of the initial HHS demands, a few have foreseen this P272 progression and rolled up their sleeves to ensure they are prepared for the extra workload.

Important matter For Opus Energy, anticipating and preparing for this move was a matter of importance to ensure that transitioning would be smooth both within the company infrastructure and for the customers experiencing changes to their billing.

With this foresight, and by partnering with IMServ,

it has been able to design a supremely streamlined and efficient process.

A key part of this was identifying industry processes that both the half-hourly and non-half-hourly areas utilise and using them as a baseline for a custom-designed program.

Most importantly, the process was designed to be scalable, allowing it to easily meet Ofgem’s new requirements and cause as little disruption to the customer as possible.

Whether or not your supplier is prepared for the additional requirements coming in the near future, we can in the meantime look to what to expect as Ofgem kicks off the code review.

A full cost-benefit analysis can be expected initially, vetting any possible options for reducing future costs.

For example, alternative design options for HHS will be considered, such as a centralised entity responsible for data collection and data aggregation. Further to this, a recommendation will be made to remove any potential barriers to suppliers collecting consumption data more granular than daily without explicit consent.

While suppliers and customers alike may feel the pain in the short term, the longer-term view promises to bring more accurate billing, and potentially lower costs. Suppliers already purchase energy in half-hour blocks. Turning around and selling them in the same increments is a logical next step. Getting there, however, will be the challenge. te opusenergy.com

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gas & electricity

Off-grid gas ‘40% cheaper than oil’ LNG and LPG salesman Rob McCord, of gas firm Flogas, suggests that gas is now a much more cost-effective option than oil for off-grid firms.

He outlines the benefits of each fuel and the roles to which they are suited

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oday’s off-grid business community faces the same commercial pressures as any other – they need to be reducing overheads and improving efficiencies yearon-year. Not only this but they also need to be adhering to increasingly stringent carbon emission reduction targets – which has been further confirmed by the recent carbon budget commitment, where we are now legally bound to cut emissions by 57% by 2030 (compared with 1990 levels).

For businesses both on and off the grid, this means there is now a serious focus on measuring The growth in the LPG carbon impact. trade last year to more Many already off-grid areas than 80 million tonnes need to purchase comes at a worldwide allowances for real premium. emissions under This means the CRC Energy the majority of Efficiency Scheme, but as this businesses operating regime comes to a close, the off the grid opt for an likelihood is that its successor alternative energy solution. will cast the net wider and Traditionally, oil was the more and more businesses fuel of choice but as we evolve will need to participate. towards a more energyThe result is, what gets efficient landscape, the likes of measured gets managed LPG (liquefied petroleum gas) – so effective energy and LNG (liquefied natural management has now become gas), as well as renewables an increasingly important (particularly large-scale role in any business. biomass) now all form an important part of the equation.

The off-grid landscape Oil has been the obvious While the UK benefits from main player for a long while. one of the most extensive However, particularly in the mains gas distribution past five years huge price networks in the world, it only volatility, matched with stretches so far, and the cost growing environmental of installing a new gas line to and efficiency pressures,

Biomethane plants such as Methwold in Norfolk are helping businesses move away from a costly dependence on oil

10%

32 August/September 2016

have led the commercial off-grid sector to reassess their supply in a bid to find a more futureproof solution.

Renewables has been an option for some, offering businesses a chance to use natural resources to effectively meet their energy needs. What’s more, those that embraced renewables at the right time have been able to cut costs and carbon and generate a solid second income stream from the likes of Feed-in Tariffs and the Renewable Heat Incentive.

However, the industry has unfortunately taken a hit after a combination of major reductions to incentives and widespread uncertainty around the future of such schemes.

Against this backdrop, a number of businesses are

now understandably hesitant to invest. The recent cabinet reshuffle has also seen the closure of the government’s Department of Energy and Climate Change and the emergence of a new Department for Business, Energy and Industrial Strategy in its place.

During this transitional phase there is still a great deal of ambiguity around how the government will tackle climate change. All we do know is that efficiency remains a key objective across the board – and energy supply sits at the heart of this.

As it stands, alternative fossil fuels such as LPG and LNG remain particularly strong contenders as businesses move away from a costly dependence on oil. This is largely because they are more competitive in price but also because they offer very swift savings. In fact, our research shows that costs can be cut by anything up to 40%, with carbon reductions reaching up to 50% – and this is all without the need for subsidy support.

Increased attention surrounding combined heat and power has also raised their profile recently, as businesses start to reap the benefits of self-generated electricity and heat using off-grid gas.

The growth of LPG The business case for LPG is very clear, so it is no surprise that the LPG market has grown so rapidly. In fact, last year LPG trade grew by 10% to almost 80 million

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»

gas & electricity tonnes a year worldwide. improved air quality and Nowadays the switchover reduced greenhouse gas to LPG is much more emissions. LPG reduces straightforward than it CO2 emissions by 15% used to be – and not only compared to kerosene, by are suppliers providing full 29% compared to gas oil turnkey solutions, there is also and by 25% when compared an extensive network in place, to heavy fuel oil (HFO). so transportation to off-grid When combined with locations is easy and reliable. more efficient gas burners, Today, LPG is being used the savings are even greater, across a vast range of both reaching 30-50%. domestic and commercial LPG emits virtually no black applications across the UK. carbon, it does not pose a risk For businesses it will power to soil and groundwater and everything from forklift emits lower nitrous oxides trucks, catering and farms (NOx) than most other fuels. through to industrial heating and manufacturing processes Comparing LPG to LNG including steam generation.

When it comes to comparing Aside from delivering quick LPG and LNG, they both offer cost and carbon similar cost savings and savings, the LNG actually offers reason LPG has enhanced green become such credentials. The a popular key differences business come down Cost savings that choice is its to the size of can be achieved by enhanced the energy switching to LPG efficacy. LPG requirement actually has a and the pricing higher calorific structure. value per tonne Put simply, the than other liquid fuels. unit cost per litre of LNG Because of this, the flame is actually lower than LPG. burns hotter and businesses However, the LNG set-up costs benefit from a quicker release are higher than those of LPG. of energy. It also produces This means LNG is more less soot particulate matter suitable for top-end energy than oil and can be used users, such as large industrial in conjunction with an manufacturers and processors. economiser in steam boilers, It is also popular with big providing further efficiencies. logistics operations, such as Despite being a fossil road haulage and shipping. fuel, there is still a strong So, those currently using environmental case for LPG. 7GW and spending more It is cleaner than most other than £250,000 each year will fuels, helping contribute to reap the benefits of LNG’s

The business case for LPG is very clear… and despite being a fossil fuel, there is still a strong environmental case

40%

The new National Gridowned Isle of Grain LNG terminal in Kent means business are now able get LNG much more freely

34 August/September 2016

lower unit price – whereas those who do not spend above this threshold are most likely better suited to LPG. The LNG market is now growing quickly. A key reason for this is that as of November last year, businesses have been able to get LNG much more freely. This is down to the new National Grid-owned Isle of Grain LNG terminal in Kent. This is the largest LNG terminal in Europe with a huge capacity of 15 million tonnes per year, and it now provides a reliable supply to businesses up and down the country via the recently opened road tanker filling facility.

An off-grid future For businesses assessing their energy needs and considering off-grid gas, the key is to think carefully about your future plans. For example, do you need onsite electricity – and therefore a CHP system? What equipment is needed and is there space on site? Do you have the capital, or will you need a supporting finance package?

These are all important questions to address.

However, once the decision has been made, it is really very straightforward.

For those that are not switching over, there is no doubt that well-established fuels like oil and diesel will continue to be around for a long time and will remain an important part of the off-grid energy mix.

However, the likes of pricing, availability and efficiency will have an impact over time. At the time of writing, prices are at an all-time low but they are unlikely to get lower than this.

The reality is, businesses cannot sit still: they need to think ahead in order to secure an efficient and futureproof energy supply, and find the best solution to meet their individual needs. te Rob McCord is head of sales at Flogas flogas.co.uk

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Viewpoint

Money, skills and the Esos gap Firms audited by the Energy Institute under the Esos scheme would save between 6% and 15% on energy bills if they followed through. But almost half will not. EI boss Louise Kingham touts the value of consultants in enabling cost effective change

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n recent years, the Energy Savings Opportunity Scheme (Esos) has enabled many large organisations to quantify the benefits of applying energy efficiency in their operations, while SMEs have become increasingly aware of those benefits both from a cost perspective and from a reputational one.

Esos in particular has helped draw attention to the positive impact energy efficiency could have on an organisation’s finances. It is a bit too soon since the implementation of the scheme to establish whether its impact will meet its overall ambition, but earlier this year the EI carried out a survey among its registered Esos lead assessors to get an indication of the potential financial gains for their clients, and to get a feel for how successful Esos might be.

A total of 570 Esos audits were conducted by the EI lead assessors surveyed. Two-thirds of those audits were conducted for existing customers, ie organisations that were already implementing energy efficiency measures in their business.

The overall average potential energy savings identified through the audits ranged from 6% to 15%.

New customers would enjoy even greater savings with an average of more than 16%.

However, the expected uptake of the audit recommendations was only 58%.

If the potential savings

36 August/September 2016

are this substantial, why isn’t the uptake higher?

Possible reasons for this include a lack of funding to cover the initial costs for improved technology, as well as a shortage of in-house skills to implement and/ or manage the efficiency measures identified by the audit effectively. This is where bringing in external expertise to support organisations in realising their energy efficiency potential can help.

The EI has long been supporting the development of energy management as a profession, promoting good practice and recognising the best practitioners in this field. The professional energy consultants listed in its register are all chartered, offer a range of technical disciplines and experience, and are bound by a strict code of conduct.

Registered consultants By using a registered professional energy consultant, organisations can ensure that the technical expertise brought in matches the organisation’s exact requirements. This independent resource can support the in-house staff

If the potential savings are this substantial, why isn’t the uptake higher?

team by improving their confidence in managing energy effectively, and provides a third party endorsement of the actions that need to be taken and implemented. An external consultant can also help guide companies through the variety of technologies and control systems available – offering unbiased advice on the best systems to use, and also how best to commission them.

A consultant brings specialised skills to the organisation as well as the experience of having undertaken similar work with other organisations. For smaller businesses, the cost of hiring in-house expertise may be prohibitive in relation to the amount of work needed; therefore taking on external expertise for ad-hoc and smaller projects, such as upskilling existing members of staff, can represent a more cost-effective option.

The greatest benefit of outsourcing energy efficiency expertise is that the consultant can be hired for a defined period of time to achieve specific project goals that will either meet energy efficiency needs directly or assist inhouse staff with achieving their goals. Particularly if a company is trying to make a case for larger or longer term investment then to have that external ‘sense check’ of priorities and assumptions can be invaluable.

The difficulty of employing outside help generally is in locating affordable and high

quality consultancy advice that meets the client’s technical requirements. Finding a good consultant is like finding any skilled professional – how do you know if they are any good at their job?

The EI’s register of professional energy consultants (RPEC) provides a vetted and tested list of energy practitioners who meet the EI’s own consultancy standards, which go well above and beyond the requirements of regulated schemes such as Esos. As well as choosing from a list where they can see the consultants’ general qualifications and experience, organisations can search for the one individual that has the most specific profile of sector, technology and skill expertise to match their needs. The end result is expert help in realising the energy efficiency savings identified in their Esos audit.

Perhaps your organisation has an Esos audit that you’re not sure gives you sufficient guidance to take the next step? Or perhaps there is too much to do and you need help to prioritise? To get you started, the EI offers a free advice service enabling you to speak, without commitment, to a consultant who will help you to identify where you may need support and what this may cover. te Visit energyinst.org/ rpec-search to find your consultant or email rpec@ energyinst.org to book your 20-minute free consultation

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viewpoint

High expectations ISO 50001 – the Energy Management Systems Standard – is being rewritten to meet the High Level Structure requirements of all management systems standards. UKAEE president Rajvant Nijjhar was part of a UK delegation that visited Stockholm in June 2016 to work on the revised standard and provides an update on progress to date

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he ISO 50001 on Energy Management Systems Standards is being rewritten following a directive from ISO HQ in Geneva. This directive effectively states that all management systems standards must be of the same High Level Structure (HLS) – ie the same content and format that is generic across ISO 14001, ISO 9001 etc.

The intention is that integrated audits will be easier and that there is less duplication across common areas such as document management, risk management, policy, objectives and targets etc. The rewrite will also provide the users of the standard with updated content on the energy aspects, as although the standard has been in use some five years only, there are still at least five years’ of practical implementation to reflect upon. Normally, standards are revised after a much longer period in circulation but the HLS has prompted an earlier than usual review.

Panic not. The July 2011 (current) version will still be in implementation for three years after this standard is revised, (expected date, January 2019).

For those intending to use this as a route for Esos, please carry on business as usual.

However, this article is intended to provide you with an update on some anticipated changes.

The working group meeting in Stockholm was particularly large for a couple of reasons: • The standard was at

38 August/September 2016

Is a change in energy source – for example a fuel switch – or a reduction in greenhouse gas emissions universally considered to be an energy performance improvement?

committee draft stage, which means you can really rework it, and • The meeting was also a plenary session in which the decision to merge two technical committees on energy management – TC 242 (the one that wrote the 50000 series) and TC 257 (the one writing the 17000 series) – into one committee, TC 301 ‘energy management’, was made. This should mean less duplication of resource and effort in developing further standards.

The plenary also disseminates any important information coming out of the ISO HQ in Geneva and new work items.

Attendance at the working group meeting just for this piece of work itself was circa 50-55 persons from Australia, Austria, Brazil, Canada, Finland, France, Germany, Japan, Korea, India, Iran, Mexico, Sweden, US and, of course, the UK. There were more than 900 comments on the standard to dispose of and indeed many of the editorial comments had been discussed in webinars in the weeks leading up to the meeting. The ISO process carefully records all decisions

made regarding comments (accept, reject, modify) made by each individual country.

However, if you have not been present at the meeting to voice your opinion, it is less likely your technical point will be understood clearly and your comment may be rejected or amended with modifications, hence why the UK’s presence was important.

Expected changes?

So, what are some of the expected changes? I’ll start with some food for thought ones that caused heated debate and are still to be properly resolved.

These may surprise you, such as, the definition of energy performance. This is ‘measurable results related to energy efficiency, energy use and energy consumption’.

The definition of energy use is ‘manner or kind of application of energy’ – that is compressed air, ventilation, heating, cooling, transport etc.

So, although one could make an improvement in energy efficiency and consumption, it was questioned as to how one could make an improvement on energy use and the group struggled to think of examples

The UK Association of Energy Engineers (UKAEE) covers a range of expertise in the energy management and energy efficiency sectors. It delivers a range of technical focussed seminars and offers excellent networking opportunities for energy and sustainability professionals.

It offers Continued Professional Development opportunities for AEE certifications such as Certified Energy Manager, Certified Measurement and Verification Professional and Certified Energy Auditor.

Membership to the UKAEE is currently free. For more information on UKAEE or how to join, please visit ukaee.org.uk

that they had come across.

The only one was: blower versus compressor – both provide air as a utility and changing the energy use could lead to… well, an improvement in consumption.

There was also discussion as to whether renewables such as solar PV, or if a change in energy source – for example a fuel switch – or a reduction in greenhouse gas emissions, was universally considered to be an energy performance improvement, given the same definition of energy performance. About half the world said ‘yes’ and about half the world said ‘no’.

Surveys have been sent to users throughout the world so that clear and concise feedback in the explanatory notes can be provided in the rewrite around these vague areas.

Energy review v energy audit Further clarification is being made around the terminology for an energy review – which may or may not encompass an energy audit but has all the steps that theoretically should. For example, the definition of an energy review is ‘determination of the organisation’s energy performance based on data and other information, leading to the identification of opportunities for improvement’.

This could be via an energy profile, a Sankey diagram, or an energy audit.

The ISO 50002 standard is about energy audits and terms it so. However, the slight disconnect arose from the fact that ISO 50002 stemmed from EN16247 – a European standard that was then ‘converted’ to an international standard – albeit still via the ISO process of draft documents to be commented upon.

The UK felt that effectively the energy review should have a stronger link to the energy audits standard; whereas other countries felt that the term energy review

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allows for more flexibility.

In the next rewrite, the crossreference is likely to be made as a note in ISO 50001 for further clarification but not making it compulsory to do an energy audit to ISO 50002 in order to be ISO 50001 compliant.

This is the interesting part of the international consensus process – understanding everyone’s concerns and paving a way forward that satisfies all, if not the majority, of people’s points of view.

The HLS also introduces new text such as ‘performance evaluation’. This would be also the evaluation of the energy management system as well as the energy performance improvement under the section, ‘monitoring, measurement and analysis’. ‘Risk management’ and ‘change management’ are also areas of new text, required under the HLS. The UK will be pushing hard to have behaviour change specifically recognised under the section for change management (as well as being implicit in top management commitment).

Although all these points might sound quite fundamental, the difference is in the nuances and the way that different people and different countries have still managed to interpret certain terms and definitions differently, despite the fact that the whole purpose of a standard is to standardise.

The UK team is meeting to discuss its position on these items in the coming months and would welcome views from the wider community.

Therefore, if you have any comments on the standard, or the way it has been interpreted, then please feel free to email rajvant@ivees.co.uk The process is now at Committee Draft #2 stage – so it is still possible to make some fundamental rewrites. Once this stage has passed, it will be a case of tweaking. So best to get your say in now. te ukaee.org.uk

Finance

‘Political chaos is bad news’ The government must deliver a clear, cohesive energy strategy to prevent dwindling investor confidence from impacting our energy targets, believes Andy King

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espite record employment levels and impressive growth in recent years, a sustained period of political uncertainty has led to a loss of confidence from some renewable energy investors.

Even before Brexit, investor confidence in the energy sector was suffering from a lack of coherent energy policy, with sudden and numerous policy changes.

The Conservative government has failed to keep coalition promises about renewable energy strategy, with a lack of long-term vision, no transparency and mixed messages from Whitehall all adding to the confusion.

While the government maintains that spending on clean energy should be curbed to “protect hard working families”, a report published

by Conservative think-tank Bright Blue in June has said that renewables must be the government’s ‘Plan B’ if the (again) delayed Hinkley Point C nuclear power plant does not come to fruition.

Loss of confidence It is no wonder there is a loss of confidence in the investment community; in May, the UK fell to an all-time low of 13th in the annual Ernst & Young ‘Renewable Energy Country Attractiveness Index’, which ranks countries according to how attractive they are to investors. The government’s ‘non-committal approach’ and ‘track record of U-turns’ was blamed.

Now, of course, we have the

40 August/September 2016

Will Theresa May’s newly appointed Cabinet use independence as a chance to reduce our targets for clean energy production?

added uncertainty caused by the Brexit vote, not to mention a new prime minister and the immediate dismantling of the Department of Energy & Climate Change. Will Theresa May’s newly appointed Cabinet use independence as a chance to reduce our targets for clean energy production?

Only time will tell.

Whatever the long-term implications, it is clear that in the short-medium term the political chaos is affecting investor confidence, which is bad news for the energy sector and for those involved at all stages of energy infrastructure projects.

In a survey undertaken by Sweco at All-Energy 2016 (before Brexit), almost half of respondents believed the UK will fall short of its commitments to the 2020 climate and energy package. It is important now to focus on building renewable capacity to meet our carbon and green energy targets, but only 36% of respondents said they are planning to invest in a renewable energy related project in the next 12 months – citing a lack of coherent energy policy as the biggest barrier.

Need for support mechanisms So what must be done? Above all else, we need transparent, properly consulted and longer-term political support mechanisms to provide the stability needed for the longterm investments. If that can be achieved, the good news is that there are a number of proven energy generation technologies which can make a real difference.

Wind power is still attracting interest from investors, followed closely by energy storage and district heating/combined heat and power, a big development area that can significantly help meet the UK’s carbon commitments. The UK continues to explore the potential of interconnectors too; huge, high-voltage transmission cables which allow electricity to flow from one country to another.

All is not lost of course; Sweco is involved with projects across all of these technologies and it is clear that the interest in renewable energy remains from some investors. WindEurope reports ¤14bn of investment in European offshore wind projects in the first half of 2016, split across seven projects and financing a total of 3.7GW of new clean energy capacity.

Crucially, roughly three quarters of this investment relates to UK projects.

However, the need for clarity has never been greater and until the confusion clears, opportunities will be limited. Now is the time for the government to show its energy credentials. te Andy King is director of energy for Sweco UK sweco.co.uk

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20

Positive outlook: Can battery storage fill a looming capacity gap?

August / September 2016

50

Chilling news: Firms wasting up to 10% of UK power by leaving air con on

58

Share value: Data initiative sees firms unlock energy efficiency

£85m – The potential cost of non-compliance to businesses p28

Finance

Two sides of the same coin?

Only 6% of EU large companies provide any form of non-financial disclosure yet good reporting is rightly viewed as symptomatic of good governance. Carbon Smart’s principal consultant Martin Sedgwick investigates

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nnual reports have long been recognised as an important medium through which companies disclose information to external stakeholders regarding performance, strategy, risks and opportunities for growth. As good reporting stems from good governance, most companies will have sophisticated and mature systems in place to manage financial information throughout the year, across all parts of the business, thereby enabling timely disclosure at year end.

Imagine trying to operate in an economy where companies approached financial disclosure in the same way they currently manage and report on non-financial matters, such as energy, emissions, environmental and social issues.

Would you invest in a company if you could find no mention of any financial information in its annual report? Or if the financial performance of individual business units were simply estimated due to insufficient data? Or if the only remotely finance related disclosure available concerned voluntary initiatives of staff in local communities? Of course not. Such a situation would clearly be absurd. And yet, sadly, this is par for the course for non-financial reporting.

Across the EU, just 6% of EU large companies provide any form of nonfinancial disclosure while the overwhelming majority, about 42,000 companies, do not.

But the reporting landscape is changing and companies ignore this at their peril.

42 August/September 2016

A clearer view of a company’s performance is gained from nonfinancial reporting

Since 2013, all UK quoted companies have had to include greenhouse gas (GHG) emissions within their annual reports.

The Strategic Report and Directors’ Report Regulations introduced legislation requiring quoted companies to disclose information “necessary for an understanding of the development, performance or position of the company’s business”, which includes disclosure of KPIs on nonfinancial matters, such as energy consumption.

And regardless of Brexit,

by December 2016, the UK is required to transpose the EU directive on non-financial

Would you invest in a company if you could find no mention of any financial information in its annual report?

reporting into law, placing obligations on companies to include relevant and useful information on policies, main risks and outcomes for non-financial issues.

Following the UK government’s consultation on reforming the business energy efficiency tax landscape, a new, consolidated reporting regime is now expected in April 2019 to reduce the administrative burden of complying with several overlapping schemes (such as Esos, CRC and MGHG). While the results of the consultation revealed scope for consolidating tax and reporting requirements, the business community remains unequivocally clear in supporting the benefits of non-financial disclosure.

Prior to the March 2016 Budget, representatives of several leading organisations including BT, Aviva, Nestle, National Grid and IEMA signed an open letter stating that mandatory GHG reporting has helped to improve board level oversight, investor engagement, resource efficiency and productivity.

Earlier this year, Larry

Fink, CEO of Blackrock, with $4.6 trillion assets under management, stated that “over the long term, environmental, social and governance [ESG] issues, ranging from climate change to diversity to board effectiveness, have real and quantifiable financial impacts”.

And a recent survey conducted by PWC revealed that 97% of limited partners carry out an ESG assessment prior to allocating funds and that “70% of institutional investors are turning down projects on environmental, social and governance grounds”.

As the saying goes, you cannot manage what you cannot measure. The financial industry is increasingly awake to the risks presented by a failure to manage and report on ESG issues. Although legislation may currently be targeted primarily at larger companies, a trickledown effect is inevitable as they demand greater disclosure from suppliers in order to meet their obligations. Aside from need to ensure compliance and meet rising expectations of external stakeholders, a robust and proactive approach to nonfinancial disclosure presents an opportunity for companies to report on their ‘handprint’, ie the positive efects they have, as well as their ‘footprint’ – the impact they leave behind.

In the 21st century, can companies afford to manage non-financial disclosure with any less rigour than traditional financial concerns? For leading companies, it is already clear that financial and non-financial reporting are simply two sides of the same coin. te carbonsmart.co.uk

theenergyst.com

CHP

The Andigestion facility recycles more than 34,000 tonnes of food waste every year

Well worth digesting Andigestion is one of the UK’s largest gas-to-grid anaerobic digestion facilities of its kind. The Energyst investigates

T

he Andigestion anaerobic digestion (AD) facility in Cheltenham recycles more than 34,000 tonnes of food waste every year.

Collecting plate scrapings, leftovers and out-of-date produce from homes and businesses across Gloucestershire, Andigestion recycles these materials at its facility in Bishops Cleeve, via the AD process.

Similar to composting, the process sees food waste degrade naturally, while capturing the biogas produced during the process.

Using gas-to-grid (G2G) technology, this gas is purified and upgraded to reflect the properties of natural gas.

By doing so, Andigestion can send 100% of the gas generated from recycling food

44 August/September 2016

waste straight to the National Grid – allowing the power to be used almost immediately in homes nationwide.

Grid-free operation As part of initial site development plans, Andigestion’s owners made the decision to operate gridfree. Simply, this meant that no mains power (electricity or gas) would be used on site. Instead, the plant was to be completely self-sufficient – effectively repurposing the energy it created.

Andigestion therefore looked towards gas engine specification and maintenance expert CooperÖstlund to specify and install a 350Kw, eight-cylinder combined heat & power (CHP) engine.

Working alongside G2G technology, this would

convert a nominal percentage of the captured biogas into electricity, which would be used to power the site’s lighting, depackaging plant, air compressors

and water pumps, with all surplus electricity sold back to National Grid.

In addition to creating renewable electricity, heat produced by the CHP engine

The CHP engine converts a nominal percentage of the captured biogas into electricity to power the entire operation

manager at Andigestion, would also be used to firstly comments: “As one of the pasteurise the digestate, as well country’s most advanced AD as keep it warm during the facilities, our Bishops Cleeve digestion process. This would site provides a sustainable ensure that the microorganisms waste management solution present were kept at an for homes and businesses optimum temperature – across the Gloucestershire maximising the gas yield region. Operating entirely collected from recycling organic free of mains power, the waste – as well as ensuring site is as environmentallythe resulting digestate could friendly as it could be. be repurposed as sustainable “However, this wouldn’t biofertiliser for local farmers. have been achievable As the generation of without the assistance of renewable electricity is CooperÖstlund, subsidised by the whose knowledge, government’s expertise and Feed-in-Tariff, creative installing the thinking were system would a critical guarantee part of site a token of the gas generated development. financial from recycling food The team return – waste that can delivered simply for be used the perfect generating energy solution for our via CHP. Combine requirements and we this with the Renewable can’t thank them enough.”

Heat Incentive (RHI) subsidy CooperÖstlund director for generating and utilising Johan Östlund adds: renewable heat, as well as “Working with AD sites injecting biomethane directly nationwide, we have into the national gas grid via unparalleled experience in G2G, and the true financial the specification, installation, benefit of CooperÖstlund’s commissioning and servicing engine solution becomes clear. of CHP gas engines.

“Although we typically fit Delivering significant results and service gas engines on Following Andigestion’s site looking to convert organic official opening earlier this waste to electricity using CHP, year, operation has been working with Andigestion on carried out in a highly such an innovative project sustainable fashion – using demonstrated our capabilities renewable electricity and on a more intricate scale. heat to power the plant, “Using electricity to while exporting biomethane power the site and heat to to the national gas grid. pasteurise the digestate Furthermore, the facility is ensures that Andigestion now one of the only AD sites can run its entire operations in the country to boast ‘island via recycled waste – setting mode’ – meaning that it can the standard for other continue to operate even in the facilities across the UK.” te event of the grid going down. cooperostlund.com Jon Stait, operations

100%

Using electricity to power the site and heat to pasteurise the digestate ensures that Andigestion can run its entire operations via recycled waste theenergyst.com

CHP

It all ADs up to efficiency A new combined heat and power plant is helping a farm to generate renewable electricity

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uilt by Wolf Power Systems, the new combined heat and power plant at John Rennie & Sons Gask Farm site in Turriff, Aberdeenshire has an expected output of 550kW, most of which will be exported to the National Grid.

Gask Farm is an arable and pig farm. An anaerobic digestion (AD) Expected output plant had of the anaerobic already been the facility. digestion plant operational Anaerobic at the site for digestion is 10 years, using a great way about 15,000 tonnes for managing of feedstock – mostly food local waste streams waste and abattoir material, and reducing the emission with some of the farm’s own of methane (a greenhouse pig slurry used as well. gas) into the atmosphere.

The AD process produces The CHP is a very important 67% methane and 32% part in the process – using carbon dioxide. Running AD with CHP units ensures with the biogas from the AD the effective use of biogas. plant, the new CHP plant The methane is converted will be more efficient and into electricity, but the CHP have lower running costs. also produces a lot of hot The expected output is water, which is used to keep 550kW, of which 500kW the digester at a constant is exported to the National 40°C. Some of the hot water Grid. The rest is used to run is also used by an onsite

550kW

By doing this we have managed to reduce our fertiliser bill by 90% and have gone carbon neutral

pasteurisation plant, which heats up the digestate to over 70°C and thereby kills any pathogens which may have been in the animal byproducts or food waste. The digestate can then replace mineral fertilisers – another win for the environment.

Andrew Rennie, managing director at John Rennie & Sons, says: “I think it is great that we can take the energy out of the waste streams, put it through the CHP and clean the digestate up again with its own energy and still be left with a good, clean and nutritious fertilizer to grow next year’s crops.

“By doing this we have managed to reduce our fertiliser bill by 90% and have gone carbon neutral.”

Markus Kruse, chief executive at Wolf Power Systems, adds: “Anaerobic digestion manages local waste streams and reduces the emission of methane into the atmosphere.

CHP is a very important part in the process – using AD with CHP units ensures the effective use of biogas and turns a waste product into a useful resource.” te en.wolf-heiztechnik.de

Innovative solution fuels savings

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Blending gas to fuel CHPs

46 August/September 2016

TW Energietechnik has developed new equipment that blends two gas streams of different qualities to fuel CHPs. This equipment blends the two gases to a homogeneous fuel mixture and is indicated for land fills that struggle with shrinking heating values and volumes of biogas along their

lifetime. This shrinking heating value can be compensated by gradually enriching biogas with natural gas.

The blending is automatised and designed to consume the lowest possible amounts of NG. Almost any CHP can easily be upgraded.

There are several advantages for the operator. At startups

the CHP receives the perfectly balanced fuel, preventing startup problems caused by low CH4 concentration.

That enables the operation of CHPs even with CH4 concentration lower than 30%, increasing its lifetime and availability, and therefore its economic feasibility. te etw-energie.de

theenergyst.com

Club saves carbon to the toon of 390 tonnes

CHP reduces energy and water use

Newcastle United Football Club’s use of a combined heat and power system is cutting its carbon emissions by 390 tonnes a year.

Via a 12-year energy performance contract with Ener-G, whose CHP business was recently acquired by Centrica, the system is paid for by savings on electricity bills. The arrangement is one of a number of energy saving measures made at the club’s St James’ Park groundin the past six years.

The club says it has since made hundreds of thousands of pounds of cost savings and created a negative carbon footprint through offsetting and energy efficiency measures. These include boiler optimisation, burner management, lighting

E.On is building an onsite generation plant for Procter & Gamble’s Gillette manufacturing site in Berlin.

The plant will provide P&G’s razor and body care supply production with heat, power and cooling.

The core element is a 2MW combined cooling, heat and power plant .

E.ON’s integrated solution helps P&G reduce its power consumption. The absorption cooling will decrease the production site’s power needs by 2.5GWh annually. Due to its high efficiency, this trigeneration scheme reduces CO2 emissions by 2,600 tonnes per year. In addition, P&G will be able to reduce public water consumption for cooling processes by 86%.

upgrades, bore holes for natural pitch irrigation, smart building and energy monitoring and controls and behavioural changes among the operational staff.

Facilities manager Eddie Rutherford says: “The less energy we use, the less carbon we emit and the less impact we have on the environment, both locally and globall. Our partnership with Ener-G to introduce a high efficiency CHP system is another major step in our mission to achieve outstanding green performance.” energ-group.com

The new plant is planned to be operational by end of 2016.

E.On will own and operate the CCHP for P&G. In order to guarantee a high level of operational and maintenance efficiency and to adapt the operational mode on demand, the plant will be connected to E.On’s 24/7 remote control center in Hamburg.

E.ON Connecting Energies CEO Bernd Schumacher says: “This efficient trigeneration plant shows the numerous benefits that the decentralised solutions of tomorrow’s energy world can offer to energy-intensive industrial customers – from CO2 and energy reductions to cost savings.” eon-connectingenergies.com

Published 2016

The Heat Report

Produced by

theenergyst.com

Supported by

August/September 2016

47

HVAC

Cheese producer Wyke Farms is using Calor gas to generate clean energy in Somerset

Boosting biomethane How can LPG help the green gas industry? Calor’s Ken Davies explains why mixing renewable gas is necessary and how producers can make the most of their gas with the help of LPG

A

s the scale and scope of the sustainable energy sector continues to grow, the need for renewables and traditional fossil fuels to work together to create a stable and secure system becomes more and more apparent.

There are many examples of this but perhaps the most striking relationship can be found in the biomethane industry, where the renewable gas needs to be blended with LPG before entering the gas network and being supplied to consumers.

Though worries over Brexit and the reorganisation of Decc into BEIS have left much of the renewables sector uncertain, the public and

48 August/September 2016

Blending LPG with lower grade biomethane increases its calorific value. That means it matches the quality of the local grid - and we can still claim RHI benefits

political demand for increased sustainability remains firm.

Of all the various green energy technologies currently vying for attention in the UK, biomethane is among the more successful. There are almost 50 gas-to-grid plants operating at the moment and in 2015 the UK was the fastest growing renewable gas market in the world. All indications show that this is only likely to increase as demand continues to climb.

A report produced by the Renewable Energy Association earlier this year found that 84% of people would like to use biomethane in their homes and the government has stated that biomethane-to-grid technology

“is a key renewable technology that has the potential to make a significant contribution to the UK’s 2020 renewable energy commitments”.

From waste to watts Once you take a look at the mechanics behind it, it is easy to see why biomethane is appealing to so many companies.

The gas itself is created through a process known as anaerobic digestion (AD), in which microbes convert plant or animal matter into methane.

Though some companies use specially grown energy crops as a feedstock, many others use waste such as unwanted or discarded food

theenergyst.com

and drink, sewage sludge or crop residues – byproducts that they would normally have to pay to dispose of.

This means that by installing an AD plant and setting up a gas-to-grid system, this waste can actually be converted from a cost into a revenue stream.

However, one of the issues with the AD process is that the exact quality of the gas depends on a number of factors ranging from the feedstock used to the length of time it has spent in the digester.

Even after it has been cleaned up, it is highly likely that the biomethane produced will not have a high enough calorific value to be injected directly into the natural gas grid.

In order to ensure that it reaches the required quality standards and that customers get the energy that they paid for, it has to be ‘spiked’ with LPG, which has a higher calorific value. By blending around 3-4% of LPG into the biomethane, a system can easily create gas that can be sold to households and businesses across the country.

By blending around 3-4% of LPG into the biomethane, a system can easily create gas that can be sold to households and businesses across the country

Spiking interest Calor gas is already being used to help generate clean household energy by cheese producer Wyke Biodegradable waste Farms at its in tonnes Wyke Farms site in Bruton, converts into renewable Somerset. gas each year The company has installed an onsite AD plant, which converts 75,000 tonnes of biodegradable waste per year into renewable gas. In order to make sure that the gas is up to the quality levels expected by the National Grid two 5,000 litre overground tanks provide a constant supply of LPG to the digestors.

Jason Fewell, engineering director at Wyke Farms, says: “We chose LPG from Calor to blend with the lower grade biomethane in order to increase the calorific value of the gas.

75K

theenergyst.com

“This ensures that that it is the same quality as the local grid gas and also means we can claim back under the government’s renewable heat incentive (RHI) benefits.”

The tanks remain the property of Calor, meaning Wyke Farms does not need to invest time or resource in maintenance.

They are also fitted with intelligent automatic top-up technology, which regularly monitors the gas levels and alerts the Calor team when the tank requires a top up so it can arrange a timely delivery.

This reliability was an important factor to Fewell, who says: “We chose Calor because of its ability to supply and the fact it provided a system to ensure that we have a noworry supply of LPG to site.

“The fact that Calor still owns the tanks is great for us too, because it lowers our capital investment.”

LPG from Calor has also allowed Welsh Water (Dwr Cymru) to start operating the first gas-to-grid facility in Wales at its Five Fords plant.

The site, based near Wrexham, produces biomethane from the huge quantity of sewage it treats each year and until recently was exclusively using it to run a gasfired combined heat and power plant. However, the company found that it was more efficient

to also install LPG tanks to help it sell the gas back to the grid.

As with Wyke Farms, Welsh Water decided that an intelligent metering system would be able to provide peace of mind that their system could keep operating without running out of fuel.

Scaling up As more and more companies look to turn waste products such as food residue and sewage into a revenue stream, the importance of LPG to this source of renewable power and heat looks set to increase dramatically in the coming years.

LPG has a vital role to play in the growth of this important energy source. We deliver a reliable and highly trusted service that allows our customers to provide the communities around them with affordable, renewable gas.

Of course, biomethane is not the only area where LPG can support sustainable energy projects. It has the lowest carbon emissions of all off-grid fossil fuels, and as such makes the perfect partner fuel for supporting all kinds of renewable technologies, especially in rural areas that are unable to access the mains gas grid. te calor.co.uk

Two 5,000 litre overground tanks provide a constant supply of LPG to the digestors

August/September 2016

49

HVAC

Up to 10% of UK power to cool buildings – even when empty A new report by BRE delivers some interesting insights into how businesses are using electricity and the factors influencing consumption. The Energyst reports

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as much as 10% of UK power generation is being used to cool non-domestic buildings – even in the evening and weekends when staff have gone home, according to a new report by BRE. The two-year study on air conditioning use was commissioned by Decc – now part of the Department for Business, Energy and Industrial Strategy.

The aim of the study was to improve Decc’s understanding of UK electricity usage by air conditioning in UK non-domestic buildings.

Led by Andy Lewry, BRE’s principal consultant in the sustainable energy team, the study included analysing existing cooling demand and consumption data; assessing air conditioning inspection reports and energy performance certificates; reviewing literature on trends in air conditioning usage and the possible future impacts of new technology; and developing procedures to extend the scope of Decc’s product policy model.

The main findings and outcomes of the research and report include: • Cooling in air conditioning systems may account for about a 10th of total UK electricity consumption.

• Heat-waves are becoming more frequent across the UK and in the south-east of England, the number of heatwave days per

50 August/September 2016

Buildings need a lot of energy to cool them. Why do it when nobody’s there?

year increased from five in 1961 to 17 in 2003.

• The proportion of buildings with air conditioning is increasing. The study estimates that in 2012, some 65% of UK office space and 30% of UK retail space was air conditioned.

• The study estimates that cooling in offices typically uses around 40 kWh/m2 per year.

• Air conditioning is frequently used even when buildings are unoccupied, for example in the evenings and at weekends.

• The analysis of Energy Performance Certificates (EPCs) indicates that more than half of air conditioning systems in the UK are split systems. Although only 10% of EPCs have AC recommendations, these mostly relate to more efficient equipment,

Although only 10% of EPCs have AC recommendations, these mostly relate to more efficient equipment, including variable speed drives, and reducing air leakage from ductwork

including variable speed drives, and reducing air leakage from ductwork.

• An analysis of the recommendations in air conditioning inspection reports, which tend to be generic with the focus on improving controls and maintenance.

• Recommendations for updating the key inputs into Decc’s existing product policy model of air conditioning electricity demand and development of an algorithm to estimate peak and monthly demand to supplement it.

BRE has also put together a dissemination plan aimed specifically at air conditioning designers and technicians, building managers and smart system designers, see link below. te bre.co.uk/ac_energyuse

theenergyst.com

HVAC

ErP drive for efficiency Significant changes to ecodesign and energy labelling (ErP) legislation in the next two years will see water heating products become more efficient than ever. Jonathan Tedstone explains

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rP legislation for water heaters was introduced in 2015, specifying minimum energy performance criteria and mandatory energy labels for products of a certain size.

In September 2013, the Ecodesign and Energy Labelling Regulations for water heaters and hot water storage tanks were published.

They established a timescale for implementation of minimum requirements for water heaters with a storage and instantaneous design, gas, LPG, oil and electric heaters, dual fuel heaters, solar thermal hot water products and dedicated heat pump water heaters.

In order to legally place their products on the market in the UK and other countries in the European Economic Area manufacturers needed to meet these requirements before the deadline.

From September last year, water heaters with a rated output of equal or below 400kW and storage tanks with a storage volume of up to 2,000 litres have had to meet minimum energy performance criteria.

Those with outputs of up to 70kW and storage volumes of up to 500 litres respectively need to display an energy label, and water heaters also had to include a size (load) profile to aid specification. Load profiles range from 3XS to 4XL. To give some guidance, S would be a water heater typically suitable for a shower and single basin at 35°C, M would be suitable for showers and a sink at 55°C and XXL would be

52 August/September 2016

It will be relatively difficult for oil-fired products to meet the new requirements without some redesign work or the addition of emission abatement technology

appropriate for simultaneous baths and showers.

Manufacturers are responsible for providing product labels. However, where a combination of products are supplied which constitutes a package, the directive requires whoever supplies the package and processes the transaction (officially known as the ‘Dealer’) to undertake calculations in order to generate a package label.

For manufacturers such as Andrews Water Heaters, a huge amount of work has gone into research and development to identify ways in which products can become more efficient, including improvements to heat exchanger and burner designs. Non-ErP compliant products cannot be sold so it’s been crucial for us to ensure all products are as efficient as possible.

We have also focused on testing and compliance, and have tested our products to the latest standards to ensure we meet the latest ErP requirements.

In addition, as performance and efficiency parameters now need to be declared via a ‘product fiche’ and within product data, we have updated our website and all installation instructions for relevant products.

What will the future hold?

Currently, the energy efficiency bands for water heating products range from A to G, but from 2017 there will be a slight change in the bands available.

A+ will be introduced as the top band and band G will be removed. A+, A++ and A+++

will most likely be reserved for renewable technologies.

However, the big change will come on 26 September 2018 and the market needs to start preparing now.

Mandatory NOx emissions will be introduced for gas, LPG and oil-fired water heaters.

For gas/LPG-fired products the maximum NOx emissions will be 56mg/kWh and for oil fired products 120mg/kWh – and we can expect this to result in significant changes to the water heating market. In terms of product alterations, gas and LPG products don’t pose any major R&D issues, but it will be relatively difficult for oil-fired products to meet the new requirements without some redesign work or the addition of emission abatement technology.

Further energy efficiency requirements also start to apply from 26 September 2018 affecting the larger size profiles, and a review of the regulations is anticipated.

The ErP Directive has already made waves in the water heating industry, contributing to the removal of inefficient products and giving a stamp of approval to those manufacturers who invest in making their products energy efficient.

At Andrews Water we are well under way with preparations for the changes to ErP in 2018, and look forward to supporting the introduction of more efficient products. te Jonathan Tedstone is category manager for Andrews Water Heaters andrewswaterheaters.co.uk

theenergyst.com

renewable energy

Solar floats bank’s boat Europe’s largest floating solar array is bankable enough for RBS. Lightsource sees a rising tide for the technology

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ndependent engineering consultancy OST Energy has worked with Royal Bank of Scotland and solar energy company Lightsource Renewable Energy to bring Europe’s largest floating photovoltaic solar project to financial close.

The 6.3 megawatt peak array provides a source of clean energy to water utilities company Thames Water on the Queen Elizabeth II reservoir west of London, and has become the first floating solar project to secure European bank financing.

Thames Water will buy all energy generated by the project as part of a power purchase agreement with Lightsource.

Throughout the early stages of planning, OST Energy acted as technical advisor to RBS, providing a range of due diligence services crucial to the final investment decision.

Commercial advantages As floating solar moves from concept to large-scale development, the involvement of a major European bank in the financing of the project is a significant milestone for the industry and a recognition of the considerable commercial advantages afforded by the technology.

High-energy users are set to benefit from the rollout of floating solar on existing water storage facilities to directly support nearby industrial applications, meet sustainability targets and reduce on-site energy costs.

However, the commercialisation of any new technology carries additional financial risk for investors,

54 August/September 2016

The Queen Elizabeth II project saw the installation of more than 23,000 PV panels and a thorough assessment of all technical regulatory and financial considerations involved in the construction and long-term operation of a large-scale site is an essential step ahead of investment.

Backed by RBS, Lightsource managed the technically demanding project, which saw the installation of more than 23,000 PV panels mounted on 61,720 individual floats, and the company will continue to operate and maintain the site.

In order to minimise associated risks, OST Energy was engaged early in the project lifecycle to carry out an in-depth assessment of longterm energy yields, technology choices and EPC and O&M contracts, alongside a review of technical inputs to the financial

model and planning and grid connection arrangements.

Long-term viability In doing so, OST’s specialist team of technical and engineering advisors was able to demonstrate the longterm commercial viability of the project ahead of the multimillion-pound investment.

OST Energy director Simon Turner says: “Floating solar is a really exciting new technology, not just for markets with scarce land availability such as Japan, but also throughout Europe, where it can provide significant benefits for energy-intensive industrial and utility users.

“This first project finance deal illustrates that the technology now has considerable backing from the banking sector, and the

Floating solar is a really exciting new technology… it can provide significant benefits for energy-intensive industrial and utility users

visible success of early projects will ultimately contribute to cost reductions that will only enhance the appeal of floating solar to developers, independent power producers and investors.”

Lightsource ceo Nick Boyle adds: “Over the last five years we’ve successfully completed solar installations of all shapes and sizes and the floating solar project presented a new set of challenges to overcome. Our continuing industry success relies on strong relationships with key financial institutions like RBS.” OST Energy has worked on more than 1,000 renewable energy projects across the globe and has a history of supporting the development of innovative new technologies in the solar sector, having provided technical advisory services for a number of early off-grid solar-plus-storage systems worldwide and supported the integration of wind and solar hybrid connections at utility scale. te lightsource-re.co.uk

theenergyst.com

Compressed air

Brexit, what’s next?

In the face of a changing political climate the industry needs to provide a strong voice, says BCAS

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CAS members are already reporting a more cautious approach to business following the Brexit vote in June.

What is clear is that end users and suppliers of compressed air need to come together if we are to mitigate the consequences and make the most of any opportunities.

BCAS is the only UK trade association that represents manufacturers, distributors and end users of compressors, vacuum pumps, pneumatic tools and allied products.

This means that it represents the needs of the entire supply chain for compressed air to the UK and European and overseas institutions.

And it is particularly important at the moment that the industry provides a united voice in the face of a

BCAS survey asks users what they need BCAS is conducting a UK-wide online survey to find out what users of compressed air need from their suppliers and maintenance providers. Everyone completing the survey will be entered into a prize draw for the chance to win an iPad Mini.

BCAS executive director Vanda Jones says: “As far as we know this is the first time that there has been an independent survey of end users to discover what they want from their suppliers and maintenance providers and how they rate their supplier.

“Compressed air is often referred to as the fourth utility and it can consume up to 30% of a company’s total electricity bill, so its correct specification, maintenance and service is vital. It is also a heavily regulated area that end users need to be aware of, so getting the correct advice is vital.”

“I believe it is vital to take a snapshot of how the compressed air industry is performing and areas where we can collectively improve.”

The survey will run to the end of September, with results published later in the year.

The winner of the iPad Mini will be notified by email in early October.

If you are an end user of compressed air you can complete the survey by visiting bcas.org. uk/survey

changing political climate.

It is a role that BCAS is well used to, having done so since its inception in 1930.

Clearly BCAS’ work with international standards and legislation will be critical.

The UK is recognised for its skills in this area and

BCAS continues to be at the heart of the international standards world.

The Brexit vote means that it will need to leverage that position even more to ensure that the UK compressed air market retains a strong voice.

Working as partners with

Pneurop, Orgalime and CAGI will ensure that BCAS continues to be a strong partner representing the UK compressed air industry in legislation, which in this global era of manufacturing will impact us all. te bcas.org.uk

Great efficiency, smaller footprint

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tlas Copco has upgraded its 30-45 kW range of fixed-speed oil-injected rotary screw compressors to offer a smaller footprint and lower noise.

The GA 30+, GA 37 and GA 45 compressors provide greater efficiency, with free air delivery (FAD) and a specific energy requirement (SER) improved by 1% respectively.

The low noise levels of 65dB(A) offered by the units mean that they can be installed on the work floor instead of in a separate compressor room. This placement close to the point of use reduces

56 August/September 2016

pipework pressure drop and therefore energy consumption.

The GA 30+, GA 37 and GA 45 offer an ‘all-in-one package’ with an integrated refrigerant dryer built into the canopy. The compressors also come with the Elektronikon controller and SmartLink for remote management to help optimise the compressed air network.

The Elektronikon controller offers a wide variety of control and monitoring features that allow users to maximise the compressors’ efficiency and reliability.

Additionally, Elektronikon controls the main drive

motor and regulates system pressure within a predefined and narrow pressure band.

The GA 30+, GA 37 and GA 45 can be used in high ambient temperatures; up to 55°C for the high ambient version.

The upgraded GA range minimises maintenance requirements as the design eliminates the need for both an oil stop valve and check valve.

In addition, the GA 30+, GA 37 and GA 45 compressors feature a spinon oil filter that removes 300% smaller particles than a conventional filter. te atlascopco.co.uk

theenergyst.com

Energy management

UK’s largest firms share data to boost efficiency investment Energy efficiency business case data shared by some of the largest companies and organisations in the UK has been made public in a bid to drive uptake of demand reduction

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he Curve platform aims to enable businesses to unlock energy efficiency investment by pooling project data across multiple business segments. Energy and sustainability managers can access and analyse the data to help build business cases for their own projects.

So far, 582 UK projects have been added to the platform, spanning insulation measures, to lighting, building management solutions, drives and controls, HVAC,

renewable energy projects and demand-side response across multiple business sectors as well as the public sector.

Key data points The platform collects around 15 data points for each energy project, mainly on the business case, with the company name anonymised when it enters the visible database. The key data points are:site type, technology area (lighting, control, wind, transport etc), amount invested, the payback, a star rating for

The Curve wants to be ‘the TripAdvisor of energy management’

Figure 1: Paybacks by technology 10.0

160 No of projects

7.5

80

5.0 Average

40

Be

Tr an ha sp vi or ou t rc ha ng IT e m ea su O ut re do s or liv M ot in g iv e po w er De m an BM d S In re du sp on st ria se lp ro ce ss HV M C En O er In t gy he do r or m an lig ag ht in em g en tt Po oo w ls er qu Re Ref al it rid ne ge y w ab ra le tio el ec n Bu tr ic ild ity in g Re fa br ne ic w bl e he at

0

Source: The Curve

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2.5

Average payback

No of projects

Average payback 120

Energy World – monthly magazine to keep you up-to-date with the industry’s latest advances and trends the project, comments and any recommended suppliers. This information then becomes available to everyone through the search capability, allowing people to see aggregate data and individual project data.

According to The Curve, initial analysis of the project data submitted so far shows that: 1. Energy management is an attractive investment class. The average payback, including 80 renewable energy generation projects, is 3.6 years. When the generation projects are removed, the average payback falls to 3.3 years. 64% of the nongeneration projects pay back within three years 2. This data sheds light on the significant “cobenefits” associated with energy projects. It finds on average three cobenefits per project, with maintenance and employee satisfaction benefits being most significant 3. Energy projects achieve high satisfaction ratings, which increase as projects move from assessed through to operational stages 4. Companies remain heavily reliant on internal cash to fund energy projects.

Some 93% of the projects are self-funded Companies that have uploaded data span multiple sectors. They include BAE Systems, BT, Capgemini, Heathrow, Jaguar Land Rover, The Crown Estate, Toyota, Unilever, Walgreens Boots Alliance and WPP. Including overseas projects,

Sharing benefits While some companies may be reluctant to “give away IP” by sharing data in order to help others build business cases, there are mutual benefits to be gained: according to The Curve, one of the car manufacturers has used the data on the platform to triple its energy management budget.

Now the platform, which is planning to spin-out and become a fully resourced business unit, wants other companies to share their data to help drive energy efficiency investment across the UK – and beyond.

According to The Crowd CEO Jim Woods, the incubator behind The Curve, the aim is to become “the TripAdvisor of energy management” EI_EnergyManagers.indd in order to tackle what he sees as a market failure.

“We estimate that over 40% of commercially attractive energy projects, which are largely synonymous with carbon reduction projects, are unrealised each year,” he said. “In the UK alone, that’s well over £1bn worth of missed investments,” he says.

The Curve’s next aim is to add an algorithm to examine the company data that it holds and advise firms on projects that should work, giving them key information such as market return data, the best suppliers, and drawing conclusions from user comments. te thecurve.me/thecurve-report

We estimate that over 40% of commercially attractive energy projects, which are largely synonymous with carbon reduction projects, are unrealised each year theenergyst.com

Energy Matrix – a vast online vault of information on all aspects of energy

there are some 650 project datasets now live on the platform, representing a total project value of £510m.

Energy management training –

a step-by-step approach to energy management training

Staff awareness – an innovative online tool, EnergyAware, to develop energy efficiency awareness in the workplace

Chartered Energy Manager – professional title unique to the EI

Register of Professional Energy Consultants (RPEC)

– a list of the best qualified consultants on the energy efficiency market

Energy Institute – the place to be for energy managers

1

12/17/2015 4:50:18 PM

Lighting

Controls clean up CP Electronics provides energy-efficient lighting control for Kärcher UK

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n 2015, cleaning technology brand Kärcher UK commissioned the design and build of a new 84,500 sq ft headquarters comprising offices, an academy, a retail centre, warehouse and workshop areas.

The consultant to the developer was Ridge and Partners, which specified the use of CP Electronics’ controls in the office space.

In particular, the Vitesse Plus lighting control module (VITP-MB) and the MWS3A microwave presence/ absence detectors were used to minimise energy use and fine-tune the lighting provision to its surroundings.

Vitesse Plus LCM can

be used with daylight sensors, to maximise the use of natural light and ensure that energy is only used when it is needed.

It can be configured to work in various combinations, which gives installers flexibility and is also available

with dimming outputs to control 1-10V analogue or DSI/DALI ballasts, and CP Electronics can provide installers with structured wiring solutions on request.

The MWS3A microwave presence/absence detector is another example of CP

Electronics’ ability to provide tailor-made solutions, because its adjustable head allows users to customise the detection pattern and to fine-tune the sensor’s activity to its environment.

Simple plug-in connections make it quick and easy to install, and an optional infrared remote handset allows users to override set-up on some models.

Milka Kerridge, electrical engineer at Ridge and Partners, commented: “CP Electronics products met the specification requirements and provided flexible and energy efficient lighting controls which helped meet the objectives of our client.” te cpelectronics.uk.com

Linear luminaire offers lezzon in style

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ezzon forms a part of Aura Light’s architectural range of luminaires that offer a modern lighting solution for offices, schools, universities and other public spaces.

The LED luminaire now also incorporates Aura Light’s Tunable White technology to allow users to adjust the colour temperature to promote natural light levels, which is known to improve productivity and concentration levels, a particular benefit to working and educational environments.

Designed and manufactured in Sweden, Lezzon is based on the advanced ‘Z-core’ light engine platform, which is used in a number of Aura Light’s latest luminaires. Z-core based

60 August/September 2016

luminaires offer high efficiency rates due to their thermal management properties.

Offering a combination of energy savings and low maintenance, Lezzon is particularly good for schools and offices where reliable and affordable lighting is required for long periods of time.

The luminaire can be specified in 36W, 41W, 53W or 65W as a low-energy replacement for fluorescent tubes or linear luminaires that are often associated with high running costs. Lezzon also offers high efficacy producing up to 115 lumens per circuit watt for excellent visibility and light levels.

Lezzon comprises an LED light source with a 50,000hour lifetime, supported by a five-year guarantee.

The efficiency of Lezzon is enhanced by the extruded aluminium housing, which ensures good heat dissipation.

This prevents the LEDs from overheating and damaging the performance and quality of light, which consequently reduces the overall light life.

The LED luminaire gives 65% direct light using a micro-prism diffuser, as well as 35% indirect using a line

prismatic diffuser, which can be dimmed using DALI dimming controls and can also be dimmed by phase pulse control, for additional energy savings where possible.

The pendant luminaire is suspended from 1m wires, which can be adjusted and moved along the luminaire to suit the installation requirements. te aura-light.co.uk

theenergyst.com

Event news

Industry leaders to deliver the answers to a greener future A greener and more effective resource managed future – Nicola Meadows outlines what’s in store at The Energy Event, The Water Event and The Renewables Event at Birmingham’s NEC on 13-14 September

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ith the outcome from the EU referendum continuing to cause economic and political uncertainly, finding additional ways to save – and make – money is more important than ever. A host of new legislation and changes to the industry’s landscape, led by the deregulation of the water market next year, not to mention the huge decision to fold Decc into the Department for Business, Energy and Industrial

theenergyst.com

Strategy (BEIS), present challenges and opportunities in equal measure.

The Energy Event, the Renewables Event and the Water Event come together at the NEC, Birmingham, on 13 to 14 September to create the most comprehensive energy and water resource management series in the UK. The events will enable you to research which future efficiencies are right for your business and enable you to understand the benefits of new operating methods and how

they can help you succeed. Not only are these events for major energy users and utilities managers, they are also key for environmental consultants, sustainability managers and green energy innovators.

Organised in partnership with key associations such as the Major Energy Users Council, the Energy Institute and the Energy Services & Technology Association, the three events are ‘must attend’ exhibitions each with its own insightful and inspiring conference programme.

The Energy Event The Energy Event is a key place for visitors to understand the latest policies, compliance requirements and find the latest technologies to drive a reduction in energy costs and improve their sustainability performance.

Building on last year’s success, The Energy Event provides key opportunities for networking and professional development. With an expertled conference and state-of-the art equipment from leading »

August/September 2016

61

Event news suppliers, a visit to this event will help you manage your energy consumption more effectively, meaning significant financial saving.

The leading event dedicated to the needs, interests and challenges facing industrial and commercial end-users will be tackling key topics, as well as the changes to energy policy, the advancement of half-hourly usage (P272) and demand-side response (DSR). The exhibition aims to provide visitors with solutions to the challenges that are facing their business.

With many exhibitors choosing to launch new products and services at the show, this is an opportunity to see first-hand the direction of travel for the energy sector.

New and longstanding exhibitors from across the world will be showcasing their latest developments at this year’s event and will continue to bring the Industrial Internet to life by connecting minds and machines.

First-time exhibitor Distech Controls will be showcasing its complete IP and Wi-Fi product series, with a webbased design and visualisation interface, which provides powerful connectivity and advanced control, monitoring and analysis for an Internet of Things-enhanced building.

Also new to the exhibition, ECS Engineering Services, which is a framework contractor for the Environment Agency, has more than 20 years’ experience in delivering high quality, reliable and cost-effective eco-design and construction engineering solutions. This year also sees the return of GE Intelligence Platforms, which will be demonstrating the potential that can be gained by connecting machines, gaining operational visibility and leveraging analytics to drive operations to their fullest potential.

There are also a number

62 August/September 2016

industry players will debate, discuss and share insights on the future of energy resource efficiency in the Energy Information Theatre of energy management experts exhibiting including Best British Energy Saving Technology, Clark Energy, Ecocooling, National Grid Metering, Edi4business and many more. For energy managers wanting to find out more about how to tackle key challenges such as energy supply, energy security and energy management issues, there’s no better place to be.

Discover 140+ exhibitors covering: • Energy suppliers • Accreditation services • Building energy management systems • Combined Heat and Power (CHP) • Compressed air • Energy purchasing consultancy • Heat Ventilation and Air Conditioning (HVAC) • Lighting

This is an opportunity to see first-hand the direction of travel for the energy sector

Energy Information Theatre 2016 The Energy Information Theatre is the place where industry players will come together to debate, discuss and share insights on the future

of energy resource efficiency.

This year’s keynote speaker is Christopher Hodgson, environment and sustainability manager at Guardian News & Media. He will be sharing the Guardian’s accelerated path to low carbon energy management solutions and full supply chain engagement as well as insights and challenges from the digital media sector’s journey towards sustainable energy use. He will be exploring what drives energy consumption in digital media and what technologies and monitoring tools can be used to achieve green success.

This year, the free-to-attend event has an ever growing list of speakers from companies such as the Environment Agency, Whitbread, Carbon Trust and exhibitors from key players in the industry.

They include Automaton Unique Engineering, BMH Technology, Corona Energy, Greenway Group, Haven Power, Weiss, Wingas, Kor Energy and the Edina Group.

Across the two-day event, the dedicated theatre programme will be informative and aims to »

theenergyst.com

Event news provide solutions to problems facing the industry.

The programme will focus on providing expert advice, support and solutions to your demand side management practice, offering in-depth discussions, practical solutions, orientated debates, technology reviews, and sector leading case studies on forming the framework for effective long- and shortterm energy management.

Key topics to be discussed include: • Esos next steps – a guide from regulators and implementers on achieving long-term environmental compliance • Best practice in energy efficiency – case studies from the UK’s most energy critical industries • Mapping the changes to the energy manager’s role – an update on the qualifications required • How to save your business money? A case for retrofitting LED lighting in 2016

Now is a crucial time for the industry to come together to drive forward the green energy agenda

• Optimising technology to unlock savings • Overview of funded support and capital contributions for SMEs The Energy Leaders Theatre New for 2016, the Energy Leaders seminar programme will offer tailored discussions on these areas, punctuated by open discussions and closed workshops on procurement challenges and industry solutions relevant to large businesses and SMEs. Furthermore, the uptake of technologies used to help monitor energy spending is helping energy managers and buyers improve their understanding of their current energy consumption. How best to use this information in implementing an energy procurement strategy will be a strong discussion theme for this year’s programme.

Other topics covered include how to mitigate the risk of pass through charges rising 20% by 2017, how to answer our energy trilemma of security through DSR and energy storage,

New and longstanding exhibitors from across the world will be showcasing their latest developments at this year’s event

64 August/September 2016

affordability and greenery, as well as case studies on aligning energy procurement with brand values through self-generation and increased agency in securing efficient, reliable energy sources.

Key topics include: • The energy buying debate – TPIs vs in-house?

• Risks and market opportunities of the energy storage model • Demand-response – could capitalising on energy opportunities be the answer to our energy trilemma?

• Taking on non-commodity prices – future proof energy buying • How can buying strategy align with a company’s CSR and fiscal annual budget, both long term and short term?

• Power to you – securing value added services today, for savings tomorrow.

The Renewables Event Going green has become the latest trend for businesses, with more signing up to the RE100 where they are committing and working towards 100% renewable power. But with a shifting political and economic landscape and the future of renewable energy unclear, now is a crucial time for the industry to come together to drive forward the green energy agenda.

The Renewables Event specialises in onsite renewable energy generation for the industrial and commercial sector, featuring companies specialising in biomass, biogas and biofuels, planning and finance, heat pumps, solar, thermal and wind.

Big energy companies will also be present, with E-ON exhibiting at this year’s event and new to the show are Enercon, HV Wooding, Kingspan Energy, Nawrocki.

theenergyst.com

The Renewables Event Theatre The dedicated conference theatre will bring together the early adopters who have implemented a green energy strategy into their business, sharing top tips on implementation, and how to create additional revenue.

This year’s dedicated theatre to renewable energy will host keynotes speakers from the Renewable Energy Association, Energy Savills and author and futurist Ray Hammond.

From engaging panel discussions to exploring case studies, speakersfrom Cornwall Energy, E-Power, Eunomia, Green Hedge, Public Power Solutions, RenEnergy, Solar-Trade Association, UWE Bristol, Dafling Farm Partnership and Tree Logic will be sharing their experiences.

Key topics across the two-day agenda include: • Mapping out the future following the EU referendum • The perks of onsite generation – creating additional revenue streams • Capitalising on solar for long-term energy procurement • Reinventing the business model of renewables with energy storage.

• The Big Debate on nuclear vs. renewables • Heat or Power – incentives to drive revenue for business

and how to align improved management, monitoring, technology investment and billing of your water use with your wider utilities, from the perspectives of Ofwat, practitioners, key stakeholders and peers.

The dedicated Renewables Event conference theatre will bring together the early adopters who have implemented a green energy strategy into their business It is a key place for visitors to understand what the industry can do to accelerate the scale-up of renewable power, particularly in an environment where fossil fuel prices have decreased significantly and subsidies to renewables have been cut.

The Water Event The opportunity for the non-domestic market to switch water supplier in the UK is gearing up with the deregulation of the nonhousehold water market coming into effective in April 2017. Guidance on how to capitalise on the technology and systems new competition will offer from monitoring and leak prevention, to better waste water management and recycling is needed in preparation

for open competition.

Many of the big water suppliers such as Anglian Water Business, Business Stream, Grand Union Water Co, Yorkshire Water, Severn Trent Services and United Utilities will be exhibiting at this year’s event.

By understanding the shifting landscape of supplychain water management, visitors can unlock the true value of water and find the latest technologies to drive a holistic approach to water efficiency. Building on last year’s success, the Water Event provides key opportunities for networking and professional development.

The Water Event Theatre The Water Theatre will provide insight into how to prepare for market opening

Seminar sessions The free-to-attend seminar programmes at the Energy Event, the Renewables Event and the Water Event will focus on providing thought-leadership, best practice case studies, practical solutions and strong debates. Our four theatres have 40+ hours of industry leading content, more than 55 sessions and feature more than 100 speakers. These discussions will support utilities and energy managers to address real life questions, opportunities, and obstacles.

Whether you are from the construction, retail, manufacturing, food industry, health, education or public sector, the four seminar theatres across these shows will be a positive platform for practitioner led discussions across water, renewables, energy management and procurement.

With a range of expert keynotes covering business opportunities, peer led case studies on best practice, as well as discussions demystifying the evolving UK energy policy and regulatory landscape, we hope you will dip into sessions and contribute to these important discussions.

theenergyst.com

Key topics across the dedicated agenda include: • Market policy update – what will deregulation offer?

• How are changes in the water market going to affect your business?

• Case study on effective and responsive leak detection Economy of sustainability: How a holistic approach to water can drive efficiency on a shoe-string • How to gain substantial water savings through internal behavioural change • Supply-chain water management – unlocking the true value of water?

Energy connects Visitors are encouraged to unlock the massive networking potential of the shows like never before through this powerful business matchmaking platform, available to all who register to attend. Search the RWM, Energy, Renewables and Water databases to find specific exhibitors during the build up to the show and arrange onsite meetings with the companies you want to meet with the most during the two days of the Energy, Renewables and Water events. This process allows you to create the most effective itinerary, maximising your time on site.

The Energy Event, the Renewable Event and the Water Event provide the ideal opportunity to plan for a more resource efficient future. te Nicola Meadows is event director of i2i Events Group, organiser of The Energy Event For more information and to register, visit rwmexhibition.com

August/September 2016

65

Viewpoint

Tapping into the water market Can retailers keep competition on the boil, asks Esta director Robin Hale

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hanges to the way the non-domestic water market will operate come into force in England in April 2017. For the first time water and wastewater retail services will become competitive for all non-domestic customers as a result of the Water Act 2014, regardless of the amount of water used.

Since 2011, retail competition in England has only existed for users of more than 5 million litres per year eligibility threshold, allowing potentially more than two million nondomestic business customers or premises to not only switch supplier but also negotiate with their current supplier or become self-supply licensee. Currently, about 28,000 non-domestic consumers are eligible to benefit from water competition.

What is retail competition?

Essentially, water retailers (including customers who choose to in effect retail water to themselves via a self-supply licence) will be able to buy wholesale services (water supply and wastewater removal) and package it with billing, meter reading and other customer service add-ons. This is expected to provide the benefit of choice through switching, better value for money, flexibility of services and improved service levels. It is expected that up to 40 retailers will operate in the market.

Water competition in this vein has been open in Scotland since April 2008 to 130,000 business customers. By 2015 about 6% had switched retailer compared with 50% that had negotiated a better deal with their existing retailer/supplier.

Business Stream reported benefits to customers in excess

66 August/September 2016

of £50m in consumption savings and £70m in discounts. Anglian Water Business, having gained the public sector contract in 2016, has seen switching increase to circa 30%.

Encouraging new entrants into this retail space is paramount and a challenge for the Open Water programme overseeing the market implementation, which is being developed and delivered through Defra, Ofwat and MOSL (the market system designer, which has the responsibility for implementing the core systems and processes that will enable customer switching).

This new scenario leads to the conclusion that metering will come under pressure to be competitive, which in turn leads to those all-important words – data and access.

Getting this right from the outset and learning lessons from the energy market is vital to provide the best experience for the customer.

While it is expected that MOSL will implement a data standard for the wholesale/ retail interface that could

influence billing, we would continue to promote and support the use of the Tradacoms 26v3 open standard already in practice across electricity, gas and water suppliers for electronic billing or EDI. Further, Esta’s automated Monitoring & Targeting (aM&T) Group that covers approximately 80% of the M&T and energy accountancy software in the UK, endorses this standard and encourages its adoption by suppliers and non-domestic consumers.

Certainly, a common approach is recognised as being required.

Considering customer reads and the use of data loggers

Encouraging new entrants into this retail space is paramount and a challenge for the Open Water programme

providing a vital service, could water go the way of gas? Where ‘daisy-chaining’ of loggers may occur on switching of retailer?

‘Daisy-chaining’ of data loggers currently represents an issue in the gas industry, which yet has to find a tidier and more efficient solution. However, without the same degree of inheritance and a greater appetite for ‘smart’ technologies, there is perhaps an opportunity for innovation in water metering and communications to lead the way and allow a level playing field for third party service participants. Esta members have already been providing value added services to the nondomestic water market for many years and will be continuing to innovate in this sector with the opening up of the market.

Shadow market testing

by MOSL and its retail members prior to the April 2017 go-live date is expected to commence in October and will be critical, as will be the awareness amongst customers and the wider industry.

Whether customers decide to renegotiate with their current retailer on their core offering of water and waste water removal; switch to gain financial advantage or get their value added services from third party specialists such as the Esta members or from taking on a single retailer to cover a complete portfolio; or indeed set up a self-supply licence, engagement is still key.

Further information on market opening can be found at open-water.org.uk and Esta will continue to cover this subject at our 15th Annual aM&T Conference, taking place at the Ricoh Arena on 23 February 2017. te esta.org.uk

theenergyst.com

Water management

Schuh steps into big savings A Scottish retail group is set to slash annual overheads by more than £60,000 – courtesy of a change in water supplier and the identification of the contribution of a small burn

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high street footwear group Schuh has switched its water retail account for its 15 Scottish branches and Livingston headquarters to Thames Water Commercial Services (TWCS) and as a result is set for savings of £22,000 a year.

In addition, its 245,000 square foot Bathgate distribution hub has slashed its projected wastewater bills by about £40,000 per year, after the TWCS team identified that run off drainage was flowing into a local burn, rather than into the sewer network where it would incur business charges.

This followed a competitive tendering and evaluation process managed on behalf of Schuh by independent consultant Inprova Energy.

Beyond the expected Schuh managing director Colin Temple says: “When we set out to switch supplier we were looking primarily to reduce our like-for-like bills. However, the team at TWCS has been very proactive in offering further

Property drainage charges can potentially make up a significant part of any business customer’s water bill

services that save us time and money and quite simply go beyond what is expected.

“The extra attention to detail was evident at our Bathgate warehouse, where the knowledge and expertise of the TWCS team in spotting the significance of the burn quite literally unearthed new savings that would otherwise have gone completely unnoticed.”

Previously, the facilities team at Schuh had been faced with individual bills at every individual property in Scotland; however, it will now receive a single consolidated bill as part of the TWCS service, saving valuable time, helping reduce transactional costs and removing hassle.

This benefit was one of the key aspects behind the recommendation by Inprova Energy to appoint TWCS. Drainage charges Alan Munro, who heads the Scottish team of TWCS, says: “We have been able to help Schuh reduce its property drainage charges significantly simply through identifying that

rainwater being discharged from the roofs of the property was actually being discharged into a nearby burn and not into Scottish Water sewer network.

“Although this situation is not too common, it is something all businesses should be aware of as property drainage charges can potentially make up a significant part of any business customer’s water bill.”

Savings made through identifying that the water was being discharged into the burn, on top of the savings through switching to TWCS, has significantly helped to cut costs for the Scottish retail institution.

TWCS offers businesses and organisations the added value of developing strategies to better manage their water and waste services; even offering educational support to help enforce cultural change to show employees how to use water more efficiently.

Operating in Scotland for three years, TWCS is continuing to attract many leading Scottish businesses from across a wide range of sectors including banking, finance, hotels, leisure, commercial, education and retail sectors.

Inprova Energy is the UK energy and water division of procurement outsourcing specialist Inprova Group. te Inprova Energy has published a free eGuide to help organisations in England prepare for water market reform. Download the Inprova Energy guide ‘Preparing for UK water market reform and competition’ at inprovaenergy.com

theenergyst.com

August/September 2014

67

Water management

Drivers for water savings While the focus of the logistics and transport sector has been on carbon reduction, more companies are waking up to water and the potential cost savings that can be achieved

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ater management specialist Waterscan has reported a surge in enquiries from across the logistics and transport industry.

Waterscan director Claire Yeates says: “We have recently signed contracts with, among others, Network Rail and the Canal & River Trust and it’s no surprise that the transport and logistics sector is taking action on water at this time.

“There are three clear drivers for action. Firstly there’s the need for stringent cost management at a time of potentially prolonged economic uncertainty. Water is often seen as a largely insignificant figure on the P&L but sound water management can have both a fast and long-term positive impact on the bottom line. The second driver is ensuring compliance within the regulatory framework of the Water Act and associated

It is no surprise that the transport and logistics sector is taking action on water

environmental legislation and targets. Finally, there’s the imminent shake-up of the water market, which will see water supply becoming a competitive retail market in April 2017. If you’re a multi-site operation you could currently be dealing with up to 35 different water companies, all with different tariff structures, so consolidating billing and switching to a single supplier could save considerable admin time and effort, and cost.”

While water consumption is relatively low in logistics compared with some other sectors like hospitality, usage is still considerable when freight and vehicle washing is taken into consideration along with washroom, catering and cleaning operations across multiple warehouse, distribution hub and office sites.

Solutions typically include leak detection and correction, validation of surface water drainage charges and the

identification and resolution of billing inaccuracies. There’s also help available with the procurement process in the context of the new open market framework.

Significant savings in water consumption can be made from reuse initiatives too. Rainwater harvesting can reduce mains water consumption by up to 30%, making it a good option for organisations responsible for warehousing and depots with expansive roof areas. Greywater recycling, which could be beneficial for companies operating vehicle washing facilities, can save as much as 40%. Aside from lower metered water bills, there is the added benefit of reduced risks of storm water flooding, decreased sewerage charges and lower energy costs associated with water supply through deploying such technologies. te waterscan.com

House of Fraser extends Business Stream deal

H

ouse of Fraser has switched a further eight of its stores in England to Business Stream for water services.

The move follows Business Stream’s successful partnership at three of the retailer’s flagship stores, which were transferred in June last year.

Branches in Gateshead, Guildford, High Wycombe, Huddersfield, London (Baker Street), Milton Keynes, Plymouth and Wolverhampton are now being supplied

by Business Stream.

The arrangement includes

68 August/September 2016

wider support on water management across the whole of the House of Fraser estate to help the company understand its water usage and improve efficiency. Business Stream has also carried out a validation exercise to ensure the accuracy of historic water billing for all of the organisation’s sites across England.

As part of this partnership approach, Business Stream has been installing automated meter readers into stores across their English estate. This follows the successful AMR deployment at House of Fraser stores in

Jo Dow, ceo at Business Stream with House of Fraser executive chairman Frank Slevin Edinburgh and Glasgow.

In June, Business Stream announced that it was buying the non-domestic customer base

of Southern Water, which will create the third biggest player in the Anglo-Scottish market. te business-stream.co.uk

theenergyst.com

products Open protocol takes centre stage at Edinburgh Playhouse An open protocol control solution from Resource Data Management (RDM) is helping Edinburgh Playhouse deliver optimal environmental conditions and comfort to its visitors, while reducing its energy consumption and carbon footprint.

Controlling multiple aspects of the heating and ventilation system, the solution uses the RDM range of intuitive controllers and free licence PLC software, TDB. The new installation was completed

by J Fletcher Engineers, which is working with the Ambassador Theatre Group, owner of the Edinburgh Playhouse, to reduce energy consumption.

The core objective of the project was a standard service replacement of the existing HVACR control panel and assets.

RDM controls were selected to replace failing controls from packaged plant

and the existing third party BEMS. Bespoke control algorithms were created using TDB, which J Fletchers found to be powerful given its programming flexibility, and free custom blocks. PLC controls were used to deliver efficient control of the heating, ventilation and domestic hot water systems, providing optimised start, weather compensation and demand-based control. Overall, the scalability of the solution, particularly the open protocols, expansions and remote monitoring has minimised initial investment costs, while allowing the system to be proven in its simplest format first.

To maximise on existing infrastructure end-users are now specifying that the systems they purchase must operate across open protocols to ensure that they do not become ‘locked in’. XML, BACnet and Modbus solutions from RDM are based on open protocols for non-propriety networking. resourcedm.com

Legionnaires’ temperature monitoring kit If you are an employer or person in control of premises you must organise a Legionella risk assessment.

A reliable thermometer kit is essential. ETI’s Legionnaires’ Temperature Monitoring Kit has been designed to monitor the temperature of both standing water and the surface temperature of pipes and tanks that form part of the water system. Each kit contains a Therma 1 thermometer, three probes – penetration, precision ribbon surface and PTFE exposed junction wire, a tub of ProbeWipes and a waterproof countdown timer, all housed in a carrying case.

Legionella, like many bacteria, thrive at certain water temperatures and therefore, a wide range of workplaces are at risk where artificial

70 August/September 2016

water systems exist, eg local authorities, large businesses, universities, hospitals, nursing and care homes, schools, children’s nurseries, housing associations, charities, hostels, landlords, managing agents, hoteliers, guest houses and caravan and camping site owners – in fact, anywhere where water is stored and circulated around a building.

The Legionnaires’ Temperature Monitoring Kit is available priced £125 plus VAT. etiltd.com

Launching into orbit Helvar has launched iDim Orbit, a complete room lighting control solution in a single sensor. iDim Orbit offers features usually only found in more complex systems. iDim Orbit is a flexible solution comprising either one PIR sensor that provides 7m diameter coverage or five PIR sensors for up to 15m coverage at 2.8m height, to cater for a range of commercial and public building applications. Its built-in light sensor provides constant light and bright out modes for maximum energy efficiency. The internal

time-clock allows for profile scheduling, and it features mobile app connectivity for easy, quick applicationspecific configuration using Bluetooth technology. iDim Orbit’s mobile app features a library of standard application profiles as well as a profile scheduler, which enables the sensor behaviour to be altered automatically during the day. Custom profiles can also be configured to suit each scenario. iDim Orbit offers up to three control channel outputs: two DALI broadcast outputs with integral DALI power supply and one switched mains output. helvar.com

theenergyst.com

Product & Services Directory Contact Harry Powell Tel 020 3751 7863 Mob 07557 109476 ENERGY METERING & MONITORING SYSTEMS

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Programmable energy saving Danlers has announced the launch of its EasyZAPP range of PIR occupancy switches. Designed for the automatic control of lighting or other connected loads, these controls are set up or adjusted remotely using a free app on an Android phone or tablet.

EasyZAPP products work as presence detector switches and can be adjusted for settings such as photocell override, time lag and maintained lux levels (dimmable versions only).

The phone or tablet can also

be used as a remote control on/ off override, or to configure a number of EasyZAPP controls at the same time. The products are straightforward to install and generally make use of existing wiring, making them suitable for either retrofit or new installations.

The EasyZAPP range includes switching only controls and dimming controls available for either DALI, 1-10VDC or DSI dimmable ballasts. Mounting options include: ceiling flush, ceiling surface, high bay and batten mount variants. danlers.co.uk

Packaged biomass boiler solution Packaged biomass boiler systems from Armstrong Fluid Technology have delivered what it claims is the UK’s largest ever distributed heat project. A total of 72 bespoke biomass boiler systems were off-site manufactured by the company for installation in Bernard Matthews farm sites across the east of England, making it possible to deliver this biomass project within the necessary timescales.

About 40% of the company’s farming estate was refitted in this project, involving 179 different biomass heating systems spread over 248 turkey sheds. Lumicity, the company responsible for delivering the project, arranged finance through Equitix and the UK Green

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Armstrong’s sytems incorporate control technology, high-efficiency boilers and variable speed circulating pumps circulate hot water to provide heating more efficiently than the previous direct gas-fired heating systems armstrongfluidtechnology.com

To feature your company’s products or services on these pages call Harry Powell on 020 3751 7863 or 07557 109476

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73

Q&A

Martin Maeso The Energy Institute’s knowledge director on Don King, playing for Liverpool and spontaneous combustion

Who would you least like to share a lift with? Why? I did once share a lift with Don King, the American boxing promotor, and his entourage, including bouncers. They were nice enough but there wasn’t much room. Not sure I’d like to do that again.

You’re God for the day.

What’s the first thing that you do?

Not sure I want to answer this one. But would start at the beginning.

If you could travel back in time to a period in history, what would it be and why?

Probably have to be my eldest daughter’s fifth birthday party, so I wouldn’t nearly sever her finger helping her cut the cake…

Who or what are you enjoying listening to?

Rachmaninov’s piano concertos, and the Lo Fidelity All Stars.

What unsolved mystery would you like the answers to?

Where does all my money go?

If blessed with any talent I’d play centre forward for Liverpool then manager when my knees went

What would you take to a desert island and why?

Sky Sports package – I’m assuming a good radio is deemed a practical thing?

What’s your favourite film or book and why?

Book would be Fugitive Pieces

by Anne Michaels. Beautifully written and profound themes.

For films could be any one of many… depending on mood. The English Patient was a brilliant adaptation…

If you could perpetuate a myth about yourself, what would it be?

That if you didn’t do exactly what I said you’d spontaneously combust.

What would your super power be and why?

Invisibility – so people couldn’t see me.

Let’s leave it at that.

What would you do with a million pounds?

Spend it.

What’s your greatest extravagance?

Bouts of laziness or procrastination.

Boxing promoter Don King

74 August/September 2016

If you were blessed with any talent, what would your dream job be and why?

Centre forward for Liverpool then manager when my knees went.

What is the best piece of advice you’ve ever been given?

Keep your fitness levels up as you get older. I wish I’d heeded it. Or maybe treat others as you’d like to be treated yourself.

What irritates you the most in life?

Inequality in society, inequality of opportunity… basically inequality.

What should energy managers be doing to help themselves in the current climate?

Think and use energy judiciously.

What’s the best thing – work wise – that you did recently?

Made someone laugh…. deliberately… oh and greenlighted the EI’s Energy Matrix project, giving members access to knowledge 24/7. te

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