The Energyst

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10

If Esos doesn’t work, should government lay down the law?

October / November 2016

18

Data is key: Maximising energy management potential

42

Engineering heating for maximum performance

“Now is the time to start planning in order to maximise the benefits of water competition” p58

INSIDE THIS ISSUE

24

20

Demandside Response

Gas & Electricity

Intelligent demand management is becoming critical for any business that is striving to reduce its exposure to rising noncommodity costs

The value of electricity loadshifting will increase significantly during the next five years, believes Dong Energy’s Jeff Whittingham.

As such, he warns provider companies not to lock themselves into specific demand-side response schemes

38 Behavioural change

Energy consumption in the office can be reduced through workplace observations and behavioural analysis

26

10

Demand-side Response

Insight

Load switching to balance capacity on the power network on the Knoydart peninsular has banished the blackouts

Current energy efficiency policy, such as Esos, appears to be let down by lack of enforcement and poor execution

12

Viewpoint

Electricity consumption is falling, yet governments consistently fail to recognise the facts when setting policy comments Andrew Warren

The official line has remained that demand for energy will inexorably rise

48

58 Water

theenergyst.com

10

If Esos doesn’t work, should government lay down the law?

Management

Commercial Heating

WaterPlus – the joint venture between United Utilities and Severn Trent – believes that getting to grips with water use is financially worthwhile

What you need to know about the Heat Network Regulations in relation to the UK property sector

4

News & Comment

October / November 2016

18

Data is key: Maximising energy management potential

42

Engineering heating for maximum performance

“Now is the time to start planning in order to maximise the benefits of water competition” p58

14

Cover Story

Pulse Business Energy’s latest innovation, POD is a system that enables effective energy procurement

Demand-side response

24

Lighting

52

Insight

10

Behavioural Change

38

Energy Storage

56

Policy & Legislation

12

Monitoring & Targeting

40

Water Management

58

Gas & Electricity

16

Commercial Heating

42

Q&A

66

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October/November 2016

3

COMMENT

Kilo-what?

Understanding energy thoroughly is a technical challenge. Many who are tasked with managing it are not from an engineering background but from areas such as environmental, compliance and health and safety. Much of this stems from the focus on carbon dioxide emissions and the imperitive to reduce them.

Although this environmental focus may well be correct in a broad sense it makes successful energy management difficult to achieve. In a highly technical area knowledge is crucial to understanding systems and technology that will enable energy reduction.

However, many who find themselves in the field of energy management are not fully able to appraise the technological subtleties and this can be a problem.

The potential for bogus or rubbish products to be sold to a credulous audience is proportional to their ability to discern the wheat from the chaff. It is why consultant Vilnis Vesma started his Pants on Fire initiative to expose fraudulent claims, and provides a free on-line basic science course for energy managers. In his opinion the prevalence of products that can’t work in a technical sense has increased partly through a lower barrier to entry because of the internet and partly because they can get away with it more than in the past.

In the 1980s, for instance, energy managers were much more likely to be appropriately qualified to be able to understand the science behind product claims.

The solution is clearly education but the budget for this is not always forthcoming. It ties in with Andrew Warren’s argument (see page 12), that real men build power stations and don’t fanny around with energy efficiency. Buying a technology solution seems to be proactive and doing something to solve the problem of excessive energy consumption, whereas paying for staff to become more knowledgeable is more amorphous in substantiating its worth.

Systems such as ISO 50001 can help enormously in that they coalesce thought at all levels of an organisation towards systematically managing energy and educating its workforce. Energy saving products are essential if reduced consumption is a target but without critical appraisal of their worth we are in danger of being duped.

The solution is clearly education but the budget for this is not always forthcoming.

It ties in with Andrew Warren’s arguement, that real men build power stations and don’t fanny around with energy efficiency

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4 October/November 2016

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NEWS & COMMENT

Ofgem says it will speed up rulemaking as UK energy system faces rapid change Energy regulator Ofgem has suggested it will move away from slow, often prescriptive rulemaking towards swifter, outcome-based regulation in a bid to keep pace with the UK’s rapidly changing energy system.

The regulator has issued a direction of travel paper in which it admits ponderous regulatory projects are no longer fit for purpose.

“Given the pace of change and uncertainty, we can no longer rely on three to four year projects to develop regulation that will set policy

for the next decade but rather need to set clear principles and a direction of travel for regulation,” Ofgem stated.

However, the regulator said it may not entirely move away from its current approach.

“This does not mean we cannot conduct broad reviews of market arrangements but we need to acknowledge these are more difficult in an uncertain world,” it stated.

The regulator pointed out that government projections, as well as those of system operators, have often proven wide of the mark

in hindsight. For example, solar PV deployment has far exceeded any predictions while energy demand variances have been much wider than most forecasts made in previous years.

Such projections, said Ofgem, cannot be relied upon for policy or rule making. Hence the regulator’s acceptance that it needs to be much more agile in order to keep up with actual system changes as they occur.

Ofgem now seeks further stakeholder engagement in its ‘Future Insights’ programme.

The regulator pointed out that government projections, as well as those of system operators, have often proven wide of the mark in hindsight

BEIS tightens capacity market rules in bid to build large power stations Government is proposing to cap capacity payments made to generators that have received financial support via risk financing schemes. The rule changes will only apply to generators that have not yet been commissioned and will not apply to those awarded contracts in auctions to date.

The Department of Business, Enterprise and Industrial Strategy (BEIS) has consulted on the changes and intends to implement the cap ahead of this winter’s capacity auction.

The former Department of Energy and Climate Change had previously mooted ruling out generators that had received certain risk financing via Enterprise Investment Scheme, the Seed Enterprise Investment Scheme and Venture Capital Trusts.

However, BEIS has noted concerns that such a retrospective move would

6 October/November 2016

The government is trying to incentivise the building of new gas plant

damage investor confidence.

It believes capping payments will retain a sufficient number of bidders in the auctions to deliver reasonable liquidity.

The rule change is the latest in a string of tweaks to the capacity market as government tries to incentivise large new build gas plant, rather than smallscale capacity, much of which has been diesel and gas reciprocal engines.

It comes as Ofgem plans changes to embedded benefits. These are payments to distribution connected generators for services such as avoiding congestion on the transmission network. The so-called Triad payment makes up a significant chunk of embedded generators’ revenue.

However, government and parts of industry believe they are distorting the capacity market, taking the

view that the increasing value of embedded benefits effectively makes capacity payments a windfall. Ofgem plans to first cap and then cut those benefits.

National Grid, through the Connection Use of System Code panel, is also looking at the issue. Proposals include stopping generators with the Triad payments entering the capacity market.

Meanwhile, Defra is working up emissions rules that will effectively rule out unabated diesel plant from bidding into the capacity market – rules which it has warned may apply retrospectively from the 2016 auction onwards.

The intended result is a much higher auction outturn, although industry experts predict even doubling the capacity payment is unlikely to incentivise large new-build gas plant.

theenergyst.com

Local authorities invited to apply for heat network funds

Reduced wind speeds hit UK renewable generation output

Local authorities and other public sector bodies can start applying for new heat network funding.

The government has made up to £39m available via a pilot scheme, part of £320m earmarked for heat network development in the next five years.

If bids are deemed successful, the funds will be made available by 31 March 2017. Applications must be submitted by the end of November. The wider heat networks investment project will then be opened up beyond the public sector.

The Association for Decentralised Energy, formerly the Combined Heat and Power Association, welcomed the launch of the programme.

“This pilot is a cornerstone for attracting up to £2bn of

UK onshore wind generation output fell by 19% year-onyear for the three months to end of June 2016, contributing to an overall reduction in renewable generation output, government data suggests.

Overall, renewable power generated fell by 2.2% while renewables’ share of the generation mix dipped from 25.4% to 24.9% despite adding 3.9GW of renewable generating capacity over the year.

Total renewable capacity stood at 32.5GW at the end of June, up from 28.6GW the previous year. However, the 14% increase could not offset reduced wind speeds, which were around 10% lower than the ten year mean for the quarter, according to department for business, energy and industrial strategy (BEIS) statistics.

Compared with the same

capital investment for new heat network infrastructure,” said director Tim Rotheray.

“More than 150 local authorities and a number of private sector property developers are working to deliver these infrastructure investments and build a foundation for a long-term district heating market in the UK.”

period in 2015, offshore wind generation also fell by 9%.

Load factors for onshore wind fell from 25% to 18.6% year-on-year, with offshore wind load factors dropping from 33.5% to 29.2%.

Less rain also curtailed output from hydro power. Hydro generation fell by 35% on a year earlier, from 1.4 TWh to 0.9 TWh, with average rainfall (in the main hydro areas) down by 26 per cent, according to BEIS. Despite lower average sun hours, output from solar PV increased due to increased capacity, with PV overtaking onshore wind as the UK’s single largest source of renewable power generation during the period. By the end of the quarter, BEIS said PV represented 33% of renewable power generation capacity (10.7GW), with onshore wind at 30% (9.75GW).

Set 2020 energy storage target and subsidise turn-down demand response over diesel, MPs urge The Energy And Climate Change Committee has urged the government to create policy that favours turn-down demand side response over decentralised diesel generation.

The committee, which has been axed by the new administration, also used its final report to reiterate calls to lift energy storage market barriers – and set a 2020 procurement target.

The vast majority of demand-side response (DSR) is currently provided by firms that switch to on-site generation at times of system stress. While such generation includes combined heat and power, as well as on-site solar and wind, much of it

theenergyst.com

In its final report, the Energy And Climate Change Committee called on the government to rethink capacity market policy

is from diesel generators.

Although government is aiming to cut diesel farms out of the capacity market through emissions regulation and more broadly, as part of a review of embedded benefits,

the committee urged BEIS to consider a merit order when capacity is tight, so that diesel is used as a last resort, and ‘genuine’ DSR via load reduction is favoured.

The committee also called

on government to rethink capacity market policy around disproportionately high bid bonds – the surety DSR providers have to pay to play in the market – as well as contract lengths. Currently DSR providers can only bid for one year contracts whereas new build power stations can bid for 15-year contracts.

In terms of energy storage, the committee reiterated calls to remove double charging and create a separate asset class for storage. It also called for longer contract lengths for storage in the capacity market.

Finally, it advised the government to set a 2020 procurement target for storage and also consider a subsidy framework.

October/November 2016

7

NEWS & COMMENT

Energy suppliers eye demand response aggregators’ lunch, Ofgem data suggests Energy suppliers have been most active in targeting industrial and commercial firms in order to build demand-side response (DSR) portfolios, Ofgem data suggests.

The regulator’s survey of end users as well as aggregators and suppliers largely confirms data compiled for The Energyst’s 2016 Demand-Side Response report in terms of perceived customer and market barriers. It also appears to suggest that energy suppliers are making concerted efforts to build demandresponse portfolios, in direct competition with aggregators.

Ofgem’s survey, largely completed by industrial and commercial companies, found that 29% more firms that do not currently participate in DSR had been contacted by suppliers than aggregators.

The regulator cautioned against extrapolating its survey findings to the entire I&C market, but suggested that were the survey data reflective, I&C firms could provide around 3GW of demand reduction and around 1.9GW of turn up.

Unsurprisingly, Ofgem found that businesses would rather receive availability payments than payments for utilisation. However, in contrast to The Energyst’s recent survey, it found that fewer businesses would consider demand-response provision even if they could name their price.

Some 55% of respondents to Ofgem’s survey said there was a price at which they would provide DSR, compared with 87% of firms The Energyst surveyed that said they would be interested

8 October/November 2016

Suppliers want a piece of the DSR aggregation market

in earning DSR revenues if operations were unaffected.

Suppliers step up Ofgem’s findings appear to confirm a view that energy suppliers are becoming more active in the demand response market. Some market analysts believe that suppliers can outmuscle aggregators.

“If you are a utility with a large I&C customer base, it is exceptionally valuable to you,” said Baringa Partners manager Eamonn Boland.

“Most of the suppliers who have that I&C retail electricity supply base are looking to move into DSR aggregation, either through acquisition of a start-up aggregator who has the technology and the key people, or building it organically because they have that very clear route to market.”

Boland says utilities also have the advantage of brand recognition.

“A large retailer or smelting plant would be quite slow to hand control of key pieces of kit to someone that does not have that brand recognition, or that they don’t know in the market,” he said.

There is clearly a desire from big suppliers to get into the aggregation market. Yes, they are making defensive moves, but that is not to say their defensive moves will be successful.

They do not have track records or experience [in DSR aggregation]

Aggregators recognise the threat to their business.

However, some believe that energy suppliers may not be sufficiently nimble.

“Suppliers are trying to find ways to integrate [DSR] into their business models and looking at ways to give better value to their customers.

They are all looking at it,” said Limejump boss Erik Nygard. Limejump is an aggregator which also holds an energy supply licence.

“The problem [suppliers] 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 year type game,” he added.

Alastair Martin, founder of aggregator Flexitricity, also believes that suppliers may find the market tough to crack.

“The one-stop shop idea is much less attractive than the large suppliers really understand. The demand response prospect has to stack up on its own,” he said.

“There is clearly a desire from big suppliers to get into the aggregation market, but they do not have track records or experience [in DSR aggregation].”

Martin believes I&C customers are “increasingly sophisticated” and will weigh any proposition on merit.

“They will buy electricity supply from whoever gives them the best price and the best data services. They will buy energy efficiency from whoever is best at energy efficiency and they will buy demand response from whoever is the best at demand response.”

Report by Ecuity says government must do more to halt electricity capacity market distortion UK Power Reserve has published an independent report by energy policy expert Ecuity Consulting which looks at the damaging impact of tax incentive schemes used to fund back-up power generation on the market and taxpayer.

Ecuity’s review has found that the UK’s electricity capacity market auctions (CMAs) have been distorted in the past two years by players able to bid at a lower level than others by using investment with special tax relief. This means the profit margin on each unit of investment they make in the capacity market is significantly higher than for those using other types of funding.

This overcompensation creates an unlevel playing field and has led the government to rethink capacity market policy.

The players in question are investing in power generation units with taxpayer-funded risk finance schemes like the Enterprise Investment Scheme (EIS), Venture Capital Trust

(VCT) and Seed Enterprise Investment Scheme (SEIS) which the Government set up to incentivise investment in high risk businesses. This kind of power generation is not high risk. Investors can earn up to six times their initial investment in just four years with tax relief.

Ecuity partner James Higgins commented: ‘’Being able to bid at a low level, while still getting high returns on their investment, means that the outturn price of the 2014 and 2015 CMA has been lower than anticipated and the government has not been able to secure the right generation mix via

the capacity mechanism. In particular, large gas fired power stations (CCGTs), have been squeezed out of the mix because they would not make a profit at the outturn price.

“These investors, which we estimate comprised over 700MW in the first two CMAs, are being subsidised in two ways: via their tax breaks which we estimate has cost taxpayers £145m (or £5 for every person in the UK); and via CM payments which are paid for by the UK bill payer.

Access to this double subsidy has been well flagged.‘’ The Department of Business, Energy and Industrial Strategy has issued proposals and a consultation to tackle the issue of selective overcompensation.

It suggests offsetting CM payments for future EIS/ VCT funded projects against the tax relief capital raised.

Commenting on the Report and BEIS proposals, UK Power Reserve CEO Tim Emrich commented: “It is important reforms happen and

we welcome BEIS’ efforts to close the loophole because we estimate a further 1GW+ of tax relief funded capacity could emerge in the 2016 CMA.” Ecuity’s analysis shows BEIS’ proposals must however be strengthened to sufficiently remove the subsidy, level the playing field, and ensure the government gets its desired energy mix.

The review concludes that is critical the government properly balances security of supply, affordability and decarbonisation targets by completely excluding taxrelief funded players from the Capacity Market.

Instead of offsetting payments, which the report suggest will be difficult and impractical to implement, the authors recommend that BEIS needs to fully exclude tax-relief-funded parties from the government to rethink capacity market policy to ensure the financial benefits of the schemes are completely removed, enabling all generators to compete fairly.

TPIs failing to engage clients on energy efficiency Third party intermediaries (TPIs) are failing to engage their clients on energy efficiency services, initial survey data collected by The Energyst has revealed.

Of 97 organisations polled to date on energy efficiency actions, 40 respondents buy their energy through a TPI. The majority (75%) of firms that use a TPI spend at least £1m per year on energy and 60% have a dedicated energy manager. Some 60% completed an Esos audit while 12.5% are ISO50001 compliant.

However, of those that contract via a TPI, only 22%

said their intermediary had actively engaged them on energy efficiency services.

Efforts by energy suppliers are almost as poor. Of 57 organisations polled that buy direct from energy suppliers, only 28% said suppliers had engaged them on energy efficiency services.

Energy suppliers and TPIs make much of their profits from selling energy. While it could be argued that turkeys are unlikely to vote for Christmas, both suppliers and some of the larger TPIs are now actively pursuing revenue growth via energy services. The findings, while

from a small sample, suggest room for improvement from both sectors in terms of customer engagement.

The survey explores drivers and barriers to improving energy efficiency within both large and small organisations and will form part of a forthcoming report, sponsored by Eon. So far, the data suggests that around two thirds of respondents mandated to take an energy audit under the Esos energy efficiency scheme have taken some form of action.

However, despite Esos requiring directors to

sign off the audit, 60% of respondents said energy had not moved up the board agenda as a result.

Meanwhile, for respondents not captured

by Esos legislation, finance (cited by 58% of smaller firms) remains the biggest perceived barrier to energy efficiency investment.

Please help us to create a more robust snapshot of UK energy efficiency attitudes by taking the short survey here. In return we will send you a free copy of the report. The the survey at: theenergyst.com

October/November 2016

9

INSIGHT

A fair assessment of energy efficiency?

Energy efficiency could be the cheapest way to deliver energy policy goals while making UK firms more robust. But current policy, such as Esos, appears to be let down by lack of enforcement and poor execution, experts tell The Energyst

E

nergy efficiency is arguably the cheapest way to deliver security of supply and reduce carbon. Yet policy focus appears to be firmly on the supply side. Companies appear equally reticent over energy efficiency, applying hurdle rates far higher than applied to other areas of business expenditure.

It is possible that policies such as Esos will make some inroads by showing businesses how they can make savings.

But those involved in the scheme are unconvinced.

10 October/November 2016

Garbage in equals garbage out, they suggest. So what will make UK plc take action?

Energy consultant Mervyn Bowden, managing director of Intuitive Energy Solutions and former head of energy at Marks & Spencer, thinks it may take some form of benign dictatorship to ensure that energy efficiency is enforced.

“That is what it needs: government to say ‘this is what we are going to do because it is about the national good and it has got to happen’. How different is it from putting a speed limit on a road?”

Opportunity lost?

The current policy thrust for improving energy efficiency among larger organisations is the Energy Savings Obligation Scheme (Esos). While there are signs that the regulation may be raising awareness of energy saving measures, Bowden believes that Esos represents a “massive missed opportunity” because it does not require businesses to act upon energy audit recommendations.

Andrew Warren, chairman of the British Energy Efficiency Federation, thinks Esos is a reasonable start,

because it requires directors to sign off energy audits, thereby compelling them to undertake financially viable measures. That theory appears to be borne out by initial survey data from The Energyst’s readership, which suggests that a significant proportion of firms that have completed an Esos audit have taken subsequent action.

But others think increased awareness may not necessarily translate to outcomes.

“What we are seeing with Esos is that larger companies view it as a compliance exercise

theenergyst.com

because they are already doing most of what it entails,” says James Summerbell, a director at Noveus Energy and former head of energy at Tesco.

“There is some evidence with medium-sized companies that Esos is opening their eyes to money-saving projects,” he says. “But we are not witnessing a Damascene moment as a result of Esos.

Those companies are not suddenly coming up with integrated energy plans.”

Quality control Part of the problem, Summerbell suggests, is that the quality of Esos audits is highly variable. But he is not convinced that requiring companies to act upon Esos recommendations, as Bowden suggests, is a good idea.

“If consistency and quality of lead assessors under Esos was improved, that would probably lead to a better outcome,” says Summerbell.

“But ultimately, if a company is just not interested, and they are not being forced to invest to reduce their consumption, then there isn’t much you can do to legislate for that without going down the CRC route again – and I don’t think anyone has any appetite for that.”

Is Esos making a difference?

That is what it needs: government to say ‘this is what we are going to do because it is about the national good and it has got to happen’.

How different is it from putting a speed limit on a road?

Incompetence John Mulholland, of Mulholland Energy Solutions, says Esos has been let down by its execution. It

The Energyst’s online survey of 40 firms that completed the Esos audit suggests that around two thirds felt their audits were thorough and are taking action as a result.

Those findings, while from a small sample, add weight to suggestions by the Carbon Trust, which was involved in around 200 audits, that about 80% of those firms have subsequently acted upon recommendations. However, David Tobin, energy consultant with the Carbon Trust, points out that those were either low or no cost measures that were already part of existing budgets.

Help us to create a more robust snapshot of energy efficiency uptake by taking our short survey at the energyst.com

was, he suggests, “a study in incompetence”.

“Part of the reason that the Esos recommendations are not being implemented is the poor quality of the Esos audits,” says Mulholland, a lead assessor who undertook 36 audits.

“The vast majority of audits were done by an unqualified army of auditors with no experience of doing Esos audits. And some of the Esos lead assessors have proved their incompetence because they have passed these audits as compliant when they clearly were not.”

According to the Environment Agency, 65% of a sample of 51 compliance audits needed remedial action to pass.

Instead of making clients pay for lead assessors, the Environment Agency should have ensured it had “competent people within the Agency to check each of the

audits,” says Mulholland.

“Because the government wasn’t willing to pay for it, lead assessors had to be paid for by the client. And what did the client want? The cheapest possible thing. So what did they get? Crap lead assessors and crap audits. There was a race to the bottom on price and no effort put into quality.”

The upshot, says Mulholland, is that it makes selling energy efficiency improvements to boards that already view it as discretionary spend even more challenging “I would say that the quality of a lot of recommendations, based on the price people were paying and the way it was done, would not be fit for purpose,” he says.

“Therefore I would not blame the management for not investing [in energy efficiency recommendations on that basis].”

Who should advise government on energy policy?

If government policy is putting the cart before the horse in terms of supply before demand, is it getting the right advice? Mervyn Bowden, managing director at Intuitive Energy Solutions, thinks not. He has mooted a cross-sector coalition of the willing to create a simple set of plans that work for industry and policymakers – and help to avoid expensive mistakes.

“I would be very happy to assemble a small group of seasoned professionals from this industry to put forward to Greg Clark and his department a set of pragmatic, commercially viable options which are independent and uninfluenced by vested interests,” says Bowden.

The group, he said, would also benefit from expertise

theenergyst.com

outside of the energy sector, such as the Royal Institution of Chartered Surveyors and the Chartered Institute of Procurement and Supply.

“All of those bodies have experts in their own fields that are used to being very objective about process-driven improvement. I think they could be of considerable benefit to the energy sector,” says Bowden.

“Taking bureaucracy, multiple consultations, political and commercial interests out of the equation I think would make for a far more effective pipeline of solutions than the present arrangements.”

If you are interested in forming such a group, drop Mervyn a line at: mervyn.bowden@intuitiveenergysolutions.com

October/November 2016

11

POLICY & LEGISLATION

Why do policymakers always assume we need more power stations?

Electricity consumption is falling, yet governments consistently fail to recognise the facts when setting policy that assumes security of supply can be achieved only by energy generation, says Andrew Warren, chairman of the British Energy Efficiency Federation

F

or the past 50 years, the UK government has issued many projections estimating future demand for energy. These have varied greatly, especially regarding the predicted market share of different fuels 15 or 20 years hence.

Yet one factor every official projection has always had in common. Without fail, our governments always grossly over-estimates the overall amount of energy that will be consumed.

One current example: since 2010, when the Conservative party returned to government, the Hinkley Point C nuclear power station has endlessly been justified by official threats that “without it, the lights will go out”.

In practice, demand for electricity has already fallen during this decade alone by 25 terawatt hours; that is the same realistic output that Hinkley might provide when/if it is finally built.

It has not required £24bn to achieve these savings.

It would make extremely tedious reading to go laboriously through every single past official forecast.

But here are just a few examples, each of which validates my basic thesis: that the official mindset always underestimates the ability of UK consumers, big and small,

12 October/November 2016

These errors matter because time and time again the official line has remained that demand for energy will inexorably rise, even as the economy grows

to seek out opportunities to minimise waste.

In 1976, the then Ministry of Fuel and Power projected that UK annual energy consumption would increase to between 500 and 550 million tonnes of coal equivalent (MTCE) by the year 2000. In fact actual consumption has never in any subsequent year risen above 280 million MTCE, and in practice has been falling every year for the past decade.

Nonetheless, 30 years on, precisely the same mistake was being made. Glance back to the Labour government’s ‘Energy Challenge’ White

Paper of 2006, which promoted the importance of investing in nuclear power rather than energy efficiency.

In that White Paper, you will see that the government projected that between 2005 and 2015 electricity generation would increase by about 12%. Whereas in reality over the same period overall fuel usage went down 18%, with electricity consumption dropping by 13%.

That is an astonishing margin of error regarding electricity consumption of 25%, all within 10 years.

The coalition government of 2010-15 followed precisely the same line of relentless over-estimation. Its first energy national policy statement said unequivocally: “Department of Energy and Climate Change analysis… shows that reductions in electricity consumption resulting from improvements in energy efficiency will be far outweighed by increases in electricity demand, potentially leading to a doubling of demand.”

Indeed senior civil servants, led by the late chief scientist Professor David Mackay, were regularly to be heard postulating a tripling of demand by 2050.

Upwards of £200bn was urgently needed to build new generation sources.

These errors matter because

in this government that truly time and time again the acknowledges that GDP official line has remained growth and energy growth that demand for energy have completely decoupled. will inexorably rise, even That celebrates the success as the economy grows. by and for consumers, that Alarmingly this reflects we are now living in a world precisely the same predictwhere truly more wealth can and-provide thinking that mean less consumption. led their mid-20th century Instead, consistently predecessors to get their government ignores and forecasts for new power underplays the importance of stations so woefully inflated. reducing energy consumption.

Meanwhile, those In its projections, (having operating in the real world uttered a few soothing words are reaching very different about the importance of trying conclusions. This spring, to save energy), ministers the trade body Energy endlessly revert to obeisance UK published an in-depth to the slogan which a few survey of current electricity years ago adorned the old industry opinion about the departmental walls: “Real likely 2030 marketplace.

Men Build Power Stations.”

Practically nobody working Since May 2015, and in the retail electricity industry without explanation, the is expecting any serious government has not just increases in the market’s abolished the Energy size. Almost everybody in Efficiency Deployment the supply industry Office – set up reckons that demand deliberately to for electricity encourage will continue consideration to decline of demand overall, or at Margin of error between management most remain projected electricity and supply constant. generation and investment In contrast, consumption between on similar official 2005 and 2015 criteria. It has government also issued a new forecasts are still single departmental blithely assuming a plan that overtly excludes 17% growth in consumption energy efficiency from any to 2030, effectively returning consideration when delivering electricity sales to peak 2005 the primary policy objective, levels. This discrepancy of ensuring a “secure and has led to Energy UK resilient energy system”. concluding that official policy Nonetheless, we are now “overestimates the amount of using far less energy than new large-scale plant to 2050”. we were half a century ago, Alas, that did not stop the despite our gross domestic then energy minister (now product being almost three environment secretary) times more valuable.

Andrea Leadsom posting For 50 years, continuous upon her own departmental improvements in the energy website that energy usage in efficiency of technologies Britain is inexorably on the and buildings has led the increase. She began her blog most successful revolution in praise of gas fracking, with in improving security and the absolute (and absolutely resilience in the entire incorrect) statement that energy market. So why on “we need to meet the UK’s earth do our political leaders rising demand for energy”. continue to wilfully pretend I have yet to see any it just isn’t happening? te statement from any minister

25%

theenergyst.com

A new report focusing on attitudes to energy efficiency and whether opportunities from schemes such as Esos are being missed will be launched 23rd November.

The energyst will launch this report on the 23rd November with a breakfast event in London.

Limited places are available for those that wish to get their copy and join the discussion.

To view the agenda and register your place please visit theenergyst.com/events

GAS & ELECTRICITY

‘Unlocking the cost stack’ Despite being the global leader on renewables and climate change, the ‘patchworked’ European energy market is not as cohesive as it could be, with some countries stealing a march on others when it comes to procurement and contract management. One area of future unification lies in the often hidden and misunderstood ‘cost stack’. UD Group’ managing director Steve Armitage explores how unlocking the cost stack will change the utilities landscape in the next decade

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s with every key area of government policy and infrastructure, energy has been the subject of anxious, Brexitdriven interest ever since Britain made the decision to leave the European Union in June. A new prime minister, a landmark deal with foreign investors for Hinkley Point and the merger of the Department of Energy and Climate Change into the new Department of Business,

16 October/November 2016

Energy & Industry Strategy have put the industry back on the front pages of the national papers. And that’s without mentioning the potential disruption to the single capacity market so long considered a panacea for European energy.

But while political sands might be shifting, there’s a quiet confidence within the utilities industry, the energy sector in particular, that the likely invoking of Article 50 in

It is perhaps not so surprising to read that the actual ‘energy’ component now accounts for less than a third of the average EU electricity bill

2017 will have far less impact than many would anticipate.

To date, we have seen very little to raise major alarm bells in the months since the EU Referendum. Not discounting the disappointing downgrading of Decc into a beefed-up business department, wholesale energy costs have only seen small increases since the Brexit vote, in line with currency changes when the pound has fallen. Of course, energy

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policy will play a part in the government’s exit negotiations but, in the best interest of climate change, infrastructure and future capacity, the continued move towards a single European market seems the sensible policy pathway for the foreseeable future.

With Brexit unlikely to rupture the principal of a Europe-wide capacity market, perhaps now is a good time to analyse the state of the (wider) nation and how it will be shaped in the next decade.

The lack of consumer demand in recent years, caused in part by the recession, has led to a drop in wholesale costs and enabled a number of European countries, such as Italy, Belgium and Spain, to make initial – albeit slightly superficial – inroads into their climate commitments. While this has proved convenient for some, supporting renewable provision and getting green infrastructure in order for the future has come at a high cost to other EU member states.

For example, Germany’s bill for subsidising renewables sits at !14bn per year, while France’s anticipated spend between 2012 and 2020 is in the region of !40bn-plus.

The inevitable increase in taxes and levies – many of which are tied into statedriven renewable incentives – has ensured that the overall cost of the average business energy bill continues to rise, despite a drop in wholesale costs. Add increasing network costs on top of the levies and it is perhaps not so surprising to read that the actual ‘energy’ component now accounts for less than a third of the average EU electricity bill.

In fact, if you look at the period between 2008 and 2012, the average weighted tax on electricity within the EU increased by 127 per cent.

In Germany, for example, 15 years down the line from market deregulation the actual

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Value lost per MWh can fluctuate by as much as £8.07, creating a massive opportunity for those that are equipped to take advantage when the wind blows in their favour

energy component accounts transparent in an attempt for less than a quarter of to create consumer loyalty the average bill, while taxes in an industry characterised on industrial use electricity by mistrust and apathy. increased by 109% in that Npower was one of the same four-year window. first to make a move in this With so much of the bill direction, and has both tied up in ‘invisible costs’ – at reduced its cost-to-serve and least in the eyes of the average increased its market share consumer – and bodies since. Other big players such as the Competition including E.on and Gazprom and Markets Authority have also taken up the publicly demanding greater mantle while many of the transparency, it is clear that smaller ‘challenger’ providers unlocking this element of are using transparent cost procurement has never been stacks to improve their more important. Of course, offering to customers. a greater degree of variable Estimates suggest that components increases the level the government’s Levy of complexity involved, but Control Framework – the these fluctuating elements also budget for schemes funded offer massive opportunity for by levies on energy bills – is those willing to embrace them. to increase from £3.2bn in Thankfully, information 2013/14 to more than £7bn surrounding the cost by 2020/21. The UK is not breakdown of the ‘non-energy’ alone in this and, while UK part of energy provision providers and independent is becoming more readily generators have made the available. Understanding the first forays into unlocking various different components, the cost stack, the rest of and how and when they Europe won’t be far behind. fluctuate, can make a huge EDF’s CEO Jean-Barnard difference to the performance Lévy went on record earlier of a producers Power Purchase this year saying that: Agreement (PPA) or a “Operators today can consumers energy barely cover their supply contract. variable costs As independent with [the generators existing] and those market using smart model,” Increase in the average metering will referring weighted tax on already be well to the electricity in the EU aware, there deregulatory between 2008 are huge gains measures and 2012 to be made for being introduced both providers and in France. Clearly, consumers by digging deeper retailers and providers into the data. Value lost per in competitive, deregulated MWh can fluctuate by as markets are having to much as £8.07, creating a change their approach massive opportunity for those and reduce their cost-tothat are equipped to monitor serve where possible. these granular changes and Patchy and uncoordinated take advantage when the energy policy across Europe wind blows in their favour. would suggest that the single Notably, as competition market is a long way off but, has increased in the UK, as individual markets become independent B2B retailers more competitive internally, and those within the ‘Big it will be those who adapt Six’ have made this element fastest who survive. te of procurement more udgroup.co.uk

127%

October/November 2016

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GAS & ELECTRICITY

Data is the enabler The energy market is being disrupted. There has been an exponential rise in businesses installing onsite genration. Meanwhile dozens of new suppiers have entered the market. Traditional utilities realise that they have to innovate or lose share. Scottish Power believes data is the battle ground

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he energy landscape is changing and data is the key to adapting to what is becoming a rapidly disrupted business model, according to Scottish Power.

“The energy industry has data but access to this, and crucially putting it into context, is something that we have not been good at as an industry,” says sales director Gillian Noble.

“Traditionally energy companies will tell customers how they can get a price, a contract and so on. Actually now the customer wants control and rather than fight against this at Scottish Power we work with it.”

The firm has invested in big data and analytics in the past three years and says it is now at the stage where customers can take advantage of its digital solutions.

Know and use your load profile “Many customers that will now fall into the half hourly market through P272 regulations say they are not ready for it.”

However, Noble says that P272 will benefit them. “It gives them more data which allows customers to have a bespoke quotation for their usage and they can also save by moving procurement products, reducing or shifting usage,” she says.

“We want customer to be informed and understand the best place to be, they can stand still but they lose the opportunities to manage their load.

“A year ago we launched the red, amber, green product and its take up was a much more positive experience when it is

18 October/November 2016

The energy industry has data but access to this, and crucially putting it into context, is something that we have not been good at as an industry

explained to the customer fully.

They understand it and then they use it,” explains Noble.

The red, amber green product allows load to be moved to account for different pricing structures in different time zones throughout the day, in addition to triad avoidance.

Noble says “the natural progression is to use assets onsite to shift load. If you can’t shift then use storage assets such as batteries and UPS.” Scottish Power acts as an aggregator to its customers that have generation and offers it to the grid. “It makes sense because as a generator we have a lot of renewable sources particularly hydro,” says Noble. “DSR has not driven renewable energy but the other way around.

“With the amount of selfgeneration occurring offgrid, it means that the costs [transmission and distribution] are shared between fewer users.

I can see usage on the system going down,” says Noble.

Another area that is developing rapidly and ties into DSR advances is storage. “We currently have a storage pilot project. The future of energy will have a lot of disruptive changes and we want to be involved with them. This particular project involves PV and batteries at a domestic level, and assuming it works it will also be scalable for business customers.”

Regarding R&D in new technologies as part of Iberdrola [Scottish Power’s owner] tests are conducted on a global level in various technologies, storage being one that is suitable in the UK. Permanent demand

reduction through energy efficiency is made easier with good visibility of consumption data. With a granular load profile benchmarking and understanding what is occurring onsite also becomes easier.

“We provide the data,” says Noble, “the hardware for implementing energy efficiency projects comes from other service providers within Iberdrola. It’s all about turning data into insight.”

Procurement “At present we have found that customers are exiting deals early, some exiting two years early as the price has been declining,” comments Noble.

This has led to the market being very busy at present.

Scottish Power’s I&C portal gives the customer and the TPI access to the same data aiding control and transparency.

“Using DSR to monetise assets, triad avoidance, our red, amber, green product that enables load shifting, the capacity market and schemes such as STOR are all part of the same thing, we look at them together.”

Noble says by accessing the right data customers are able to make informed decisions over an extended period of time. In a competitive market what you need to do is make more right decisions than the next company.

Cost reflectivity – where your money being spent on the energy you use – is predicated on having the right data available to incentivise changes in behaviour through purchasing, efficiency and demand flexibility. te scottishpower.com

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Sponsored feature

Total Gas & Power and UKPR join forces

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otal Gas & Power (Total), one of the UK’s leading suppliers of electricity to businesses (and the largest supplier of gas*) has formed a strategic alliance with UK Power Reserve (UKPR) to deliver Demand Side Response (DSR) and aggregation services. The partnership builds on Total’s investment in the renewable and technology sectors and will enable both companies to expand their service offering to existing and new customers. It will utilise UKPR’s established position as an owner and operator of assets and its first-hand knowledge of what National Grid and distribution operators need, enabling the companies to offer the market a fully consultative service. UKPR operates in the wholesale, capacity and ancillary services markets.

Matt Devoy, Total Gas & Power’s European Procurement Services Manager, said: “The new relationship with UKPR is part of Total’s commitment to better energy, helping us adapt and incorporate innovation as we improve our customers’ energy efficiency.”

Through bespoke solutions and maximising energy purchasing, clients will be able to access more effective routes to market. Sam Wither, UKPR’s Commercial Director, said: “This partnership complements our existing portfolio and will help drive forward the UK’s demand side response ambitions. Our portfolio of 700MW is essential to National

Grid and local distribution operators who help balance the UK’s electricity system.”

The decentralisation of power generation and swift changes in technology are transforming the relationship between clients and suppliers. As a result, there are many opportunities for end users to drive cost savings and generate new revenue streams. For example, a wide range of customers could be rewarded for increasing consumption when demand is low, or decreasing it when demand is high to help balance the system. Demand side response, aggregation and capacity market advisory services will be available through the partnership.

The relationship is already yielding strong results with around a dozen clients being referred to UKPR to discuss how it can help companies take advantage of the Capacity Market Auction and services like the Short Term Balancing Reserve (STOR). UKPR has previously provided aggregation and balancing services to Cantelo and others.

Total and UKPR are committed to keeping organisations efficient, providing an effective route to market and working with clients on a consultative one to one basis. This partnership will help clients capitalise on additional revenues and play an integral role in the UK’s future energy mix. * Gas volume to businesses, Cornwall Energy, April 2016

ukpo erreserve SUPPORTING A RENEWABLE FUTURE

GAS & ELECTRICITY

What’s your outlook this winter?

Intelligent demand management is becoming critical for any business that is striving to reduce its exposure to rising non-commodity costs including avoiding Triads and mitigating the impact of the capacity market, comments Inenco chief commercial officer Dave Cockshott

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ational Grid has published its outlook for the coming winter.

Improved generation margins, reduced forecast demand and 3.5GW of reserve backup plant has improved capacity up to 6.6%, allaying security of supply concerns for the coming months.

With these comfortable margins and a lower risk of power outages, business energy users should be able to rely on a secure energy supply throughout winter.

However, this does not mean that demand levels are any less significant than they have been in previous years; with the Triad season starting in November, energy use during the half hourly peak demand periods could make a big difference to a business’ energy bills in 2017.

This year, National Grid has predicted that the week beginning 12 December will see the highest level of system demand, with the week starting 9 January set to have the tightest generation margins. But Triads are becoming less predictable and businesses are facing greater uncertainty around how to act on Triad alerts.

Game theory Once market experts and suppliers signal that a Triad is likely to occur, many businesses reduce their consumption to ensure that their high transmission network charges (TNUoS) charges are minimal.

Until recently, businesses that signed up to Triad alerts could feel certain that, providing

20 October/November 2016

Energy use during the half hourly peak demand periods could make a big difference to a business’ energy bills

Triads are becoming less predictable and businesses are facing greater uncertainty around how to act on Triad alerts

18:00, a Triad bucked the trend, occurring between 18:00 and 18:30. An alert that was called on Monday 23 November also led to such a substantial reduction in energy consumption during the alerted time that the actual demand in that halfhourly period was lower than that seen on the following Wednesday (25 November), when no alerts had been called.

they acted, they could be sure to avoid the highest charges.

However, so many businesses are now responding to Triad alerts that they are becoming almost too effective.

The level of demand now often falls so dramatically during the alerted period that it no longer counts as a Triad. This presents a dilemma for businesses – if they don’t act on the alert then they risk being hit with high consumption charges, but if they do act then they could inadvertently shift the Triad to another unexpected period.

Las winter, we saw Triads become more unpredictable.

After 24 consecutive Triads occurred between 17:00 and

Mitigating charges With the growing unpredictability surrounding Triads, it can be difficult for businesses to know how to proceed when they receive an alert. The most effective way for businesses to mitigate the risk of being caught out is to continually reduce their energy consumption during peak demand periods. There are a number of ways to achieve this, from changing production schedules to reviewing the schedule for large consuming assets such as heating and air conditioning, or switching to on-site generation where possible.

Finessing a load management strategy this

winter could pay dividends for next year: the launch of the Capacity Market in 2017 will lead to a steep increase in charges for energy use during peak periods for those organisations that don’t act to reduce demand. Between the months of November and February, businesses will be hit with an additional charge based on consumption during the same peak demand period of 16:00 to 19:00, alongside a double-digit percentage increase in Triad charges for the majority of consumers.

While charging methodologies may change in future years, for now one of the biggest price risks facing businesses is how much they consume during peak periods. Intelligent demand management is becoming critical for any business that is striving to reduce their exposure to rising non-commodity costs: when it comes to avoiding Triads and mitigating the impact of the capacity market, finding opportunities to turn down during peak periods is now an essential part of any energy strategy. te inenco.com

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Sponsored feature

Flexing your site’s energy muscle Smart technology deployed to monitor the energy consumption of industrial buildings and facilities is enabling ScottishPower customers to earn additional revenue. Malcolm Paterson (pictured), Head of Energy Services UK, explores why being flexible with your energy consumption can make good business sense.

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inter is coming, which means a prolonged period in the demand for energy to keep lights switched on and offices warm during the cold snap. This shift in demand puts increased pressure on the energy network at what is traditionally a time when industrial and commercial customers pay more for their supply during peak times between November and February.

But managing the load and volume of power supply in the network isn’t simply confined to when the mercury drops. Delivering quality energy to homes, businesses and large-scale operations requires the supply and demand to be balanced at all times and maintaining this balance is a second to second, all-year round operation for the National Grid and suppliers like ourselves to manage.

The industry can manage demand through Demand Side Response (DSR) to mitigate the impact of these events, and this presents a financial opportunity for customers with a large industrial and commercial footprint who have the potential to flex their demand.

Maintaining the balance on the grid can require services that last anywhere between seconds and hours. If a customer has the ability to be flexible, ScottishPower can monetise this capability and DSR is quickly proving itself to be a lower cost provider of these services than traditional power stations.

Taking a customer-first approach to DSR Every industrial and commercial operations facility has a different energy profile, and it is important to establish a clear understanding of the resilience and energy risks involved at the site from the very start to minimise risk whilst maximising value.

ScottishPower is committed to working in partnership with industrial and commercial customers to complete a comprehensive site assessment, which will take into account high consuming energy

assets onsite to identify flexible capacity. This flexibility is the key feature which our expertise can monetise for customers. However, we firstly have to work in close collaboration to understand their needs and ensure that there will be no unwanted interference with their core objective of running the business.

Once a plan is agreed the appropriate systems and communications are installed to monitor and control the site’s energy assets remotely via a series of smart devices. This allows us to manage this flexibility alongside our own assets, using the same systems, processes and trading opportunities that are utilised to manage ScottishPower’s generation fleet. We have always managed the dispatch of assets to obtain best value in the market or to fulfil ancillary services for National Grid, and with DSR we are doing it for our customers too.

A smarter way to earn revenue Implementing a DSR management strategy onsite will deliver a recurring revenue stream with little or no additional effort from the customer. While productivity onsite continues unaffected, the amount of energy and timing of its consumption are factors that can be monetised

by ScottishPower trading experts, and aggregated over time, provision of these services will help improve a customer’s bottom line.

A DSR approach also goes hand in hand with energy efficiency best practice, improving a site’s green credentials and asset management, enhancing the customer’s understanding and data in relation to their key operational plant.

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

GAS & ELECTRICITY

Reduce DUoS red band charges DUoS charges are significant but there are ways of reducing the cost

Figure 1: DUos cost per kWh 80 70 60

kWh

50 40 30 20 10

0.05p per kWh

0.215p per kWh

4.246p per kWh

0 00 :0 0 01 :0 0 02 :0 0 03 :0 0 04 :0 0 05 :0 0 06 :0 0 07 :0 0 08 :0 0 09 :0 0 10 :0 0 11 :0 0 12 :0 0 13 :0 0 14 :0 0 15 :0 0 16 :0 0 17 :0 0 18 :0 0 19 :0 0 20 :0 0 21 :0 0 22 :0 0 23 :0 00 0 :0 0

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istribution use of system (DUoS) charges are levied by the UK’s regional distribution network operator (DNO) and have a significant impact on electricity costs.

These costs go towards the operation, maintenance and development of the UK’s electricity distribution networks.

DUoS charges are paid by the end user to the supplier, which will then pass them on to the relevant DNO. DUoS charges only appear on energy-only contracts (passthrough contracts) as itemised charges. Fully inclusive tariffs have these charges built into the unit price.

During weekdays certain times of the day are considered peak times and are categorised as red band. Other times during the day are categorised as amber (daytime) and green (night time). Amber and green bands are much cheaper compared with red bands, with amber band charges being higher than the green band (see figure 1).

Few users are aware of what the red band is or the opportunity that it

period and savings can be made without significant capital outlay.

Examples of large plant which could be load-shifted include: • Chillers • Air handling units (AHUs) • Humidification plant • Testing an emergency generator during the peak periods • Installation of solar generation can also assist by using less energy in these peak periods

Time

presents to make savings.

Unlike procuring energy costs, it is not possible to choose the most cost-effective DUoS provider. DUoS rates are determined by geographical location and are not negotiable.

The best way to reduce the impact of the DUoS charge is to be smart with how and when energy is used.

The DUoS red band costs and time periods are different across all DNO areas.

There are different charge bands for high voltage and low voltage supplies. For example, in the London Power Network area, the red band charge for a low voltage supply without a

sub station on site is currently (4.246p/kWh) but covers wide time periods (Monday-Friday 11:00-14:00 and 16:00-19:00 including bank holidays).

For the same type of supply in the Electricity North West area of England, the red band is more expensive at (11.332p/ kWh) but covers a shorter period (Monday-Friday 16:00-19:00 including bank holidays).

DUoS charges during the red band can be significantly more expensive than other periods and these charges are likely to rise as demand increases.

This presents an opportunity to reduce costs by shifting electrical load away from that

What can you do?

Analyse the 30-minute profile data usage to see what load is being used during the DUoS red band periods.

Analyse this data and determine what load could be moved to other times and recommend actions to reduce consumption during this peak period. The results can then be monitored to see the impact of the actions taken.

Calculate the cost of energy used during the red band times.

Finally, undertake a site survey, to identify key plant which could be timecontrolled to reduce red band consumption. te stcenergy.com

83% of SMEs unconcerned by risk of power loss

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esearch from British Gas Business shows that a worrying number of Britain’s small to medium-sized (SME) businesses do not consider loss of energy supply to be a major risk to their business.

Only 17% believe this to be a threat to their business; although they do perceive it to be a greater risk than data security issues (15%) and high rates of staff absence (7%).

22 October/November 2016

On average, senior managers in small businesses claim that their company has lost two working days due to a loss of electricity or gas in the past five years. Businesses that employ between 100 and 249 employees claim they lost an average of three working days in the past five years. This rises to six days for companies with an annual turnover of between £50m and £100m.

The survey was carried out

among more than 500 small to medium-sized business owners and senior managers with responsibility for gas and electricity as well as boilers and heating systems at their commercial premises.

British Gas Business says the poll shows that many companies need to take action now to help reduce the risk of losing heating or hot water this winter.

The survey showed that only a fifth of small businesses had

testing procedures in place to help reduce the risk of losing heating or hot water. Some 41% of senior managers neglect to carry out an annual service of their appliances such as boilers. The proportion rises to 45% in companies with fewer than 10 employees.

Almost three quarters (72%) of companies with fewer than 10 employees have no maintenance plan in place. te britishgas.co.uk/business

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Data the key to a good deal IMServ account manager Jason Taylor outlines the key questions SMEs should be asking

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ith volatile energy markets and increasing costs, it is becoming more and more important for businesses to have an understanding of their energy consumption.

However, small and mediumsize (SME) businesses don’t give energy management the priority it needs and end up paying the price for it.

More than half of the small businesses that we speak to have no idea how much they are spending on energy and even fewer are in a position to interrogate their usage data.

The challenge for any owner of a SME is that there are so many costs to running a business; from HR, health and safety, facilities, to marketing, energy management, and new business; the list is endless.

Typically, sourcing and managing an energy service provider and interpreting usage data will feature low down on the list of priorities. However, with greater energy insight and some simple behavioural changes, businesses can make savings of up to 15%.

IMServ provides carbon and energy management solutions,

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helping organisations of all sizes to save energy, reduce costs and control carbon emissions, working to date with more than 250,000 sites in the UK. The benefits of energy management go far beyond simple financial savings, although that is arguably the most important benefit, particularly for a small business.

By gaining control of energy usage, SMEs can identify areas of over-usage and analyse their data to better understand where savings can be implemented.

Companies can ensure that they are compliant with regulations that they might otherwise be unaware of, and incorporate energy management into their corporate social responsibility strategy.

The last thing you want to be doing is pouring over your data without any sense of what it means

IMServ believes there are five key questions that SMEs should be asking their energy service provider to ensure the best deal is secured: 1. If an energy management strategy is introduced, what are the savings? While specific savings will vary from industry to industry, providers should be able to give you an idea of how much of a financial saving you should be able to obtain.

They will have industry experts on hand with the technical knowledge and data to give you a reasonable idea of what to expect.

2. Do you have a service which is tailored to SMEs? Service providers who are worth working with will be able to offer you something tailored to your business. They will want to understand your needs and requirements rather than offering you an out-of-the-box solution.

3. Is your data easy to interpret?

The last thing you want to be doing is pouring over your data without any sense of what it means.

Ensure that the data you will receive is presented in a user-friendly platform

which suits your needs and that you can understand.

4. What kind of contracts do you offer? Typically, contracts are offered over a fixed term, although that may not be your only option. Ask what your options are, and then select the best fit for your business.

These could encompass fixed term or fixed price contracts.

You could also reduce your initial outlay by leasing your measuring equipment rather than purchasing it outright. Alternatively, you could negotiate a lower cost contract by sharing the savings obtained through energy management with the provider.

5. What practical measures should be implemented?

Communicating and educating your staff will be key to any savings you can make to improving your energy usage. Once you have found the right provider, ask them for their advice on practical measures you can take. For example, fitting a smart meter can help your business track and understand your energy consumption. te imserv.com

October/November 2016

23

DEMAND-SIDE RESPONSE

Time to switch over?

The value of electricity loadshifting will increase significantly during the next five years, believes Dong Energy’s Jeff Whittingham. As such, he warns provider companies not to lock themselves into specific demand-side response schemes

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ong energy’s managing director of sales Jeff Whittingham told delegates at Energyst Media’s DSR Event in London in September that Dong had entered the demand-response market because of changes to imbalance price rules, known as cash-out arrangements, that came into force last November.

Those changes make it more expensive for trading parties such as suppliers and generators if they have too much or too little power in the market at gate closure and are ‘out of balance’. As a result, Dong wants to pay companies to shift loads or switch to onsite generation if it is cheaper than paying the resulting imbalance penalty, which Whittingham said was likely to become “spikier” during the next few years.

New profit pool While most demand-response revenues accrue from National Grid paying companies, usually via aggregators, to help balance the system, Whittingham said the imbalance issue opened up a “completely new profit pool” for businesses that can provide flexibility.

“Only suppliers [as opposed to aggregators] can play in that space,” said Whittingham.

“You need a supply business and a trading arm to do it. So that is a big profit pool that I think is going to be significant over the next three to five years.”

Whittingham added that “the value of the kilowatt is going to rapidly increase in the next three to five years” due

24 October/November 2016

Eamonn Boland, manager at consultancy Baringa Partners, suggested that an influx of competing providers, such as battery storage operators, may potentially create downward pressure on prices.

Such an outcome underlined the need to avoid committing to one particular DSR scheme, according to the panel.

to the rapidly changing UK generation mix and changes to the balancing market.

Louis Burford, vicepresident of aggregator Restore’s UK operation, agreed that the opportunity for monetising flexible use of power was bigger than demand-side response – but said sophisticated aggregators were already starting to operate within wholesale and balancing markets to maximise the value of customers’ flexibility.

“The value [of a kilowatt] is on the increase,” said Burford. “As time goes on, we will open up new markets that will increase the value of that megawatt or kilowatt.”

A complex area However, Burford admitted that for energy managers to work out how to forecast and maximise revenues “it is a really complex area”.

While both Burford and Whittingham believe prices paid for flexibility will increase,

Energyst Media’s DSR Event in September explored the opportunities for monetising flexible use of power

You need a supply business and a trading arm to do it. So that is a big profit pool that I think is going to be significant over the next three to five years

A word of caution “You have to be flexible with your flexibility,” said Whittingham.

“There will be all sorts of new schemes appearing: one of them will be helping suppliers with the balancing mechanism; some of them will be helping the distribution networks balance local grids; some of them will come from National Grid. So you need to be very careful about going too long in the marketplace and locking yourself into a price. Because if, as we believe, [prices in] this market will go up, you might not be getting best value for your flexibility.

So be careful where you stick it,” Whittingham added.

Restore’s Burford agreed.

“I couldn’t have put it better,” he said. “In order to get best value for your megawatt, you have to be agnostic in how you approach all the different revenue streams and not commit to one specific programme.” te Baringa, Dong and Restore offer more detailed views of the demand-side response market in our new 2016 DSR report.

Download it free of charge at theenergyst.com/dsr

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Million pound drop Trinity Mirror Group aims to make headlines with its demand-side response activities

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edia group Tinity Mirror hopes to earn between £800,000 and £1m from demand-side response this financial year.

The company’s calculations are based on hitting all three winter Triad periods and delivering full output when called upon within the short-term operating reserve (STOR) programme and Transitional Arrangement (TA) capacity market.

Speaking at Energyst Media’s DSR Event, Trinity Mirror Group’s production engineering manager Garry Crask (pictured) said the group hoped to earn between £400,000 and £500,000 from

its DSR activities at its Watford site, with similar revenues from its Oldham facility. The sites combined have around 11MW back-up generation.

Crask told delegates, mainly other end-user organisations, that participating in DSR had not been straightforward.

Export MPANS had to be registered, the firm had to obtain export acceptance from UK Power Networks, its G59/2 relay had to be replaced and a PPA company to invoice for exported electricity had to be found along with better generator service contractors, according to Crask.

Meanwhile, ahead of participation, the firm realised

We were going to have to upgrade it at some point anyway, STOR or no STOR, so the revenue made it far easier to justify its generator control gear, installed with the diesel units in 1999 ahead of the millennium bug scare, could not be relied upon, so was upgraded at a cost of about £100,000.

“We were going to have to upgrade it at some point

anyway, STOR or no STOR,” said Crask, “so the revenue made it far easier to justify.”

The firm later upgraded its cooling systems after finding the generators could not deliver maximum output in the summer months due to overheating. Via aggregator Kiwi Power, Crask said Trinity Mirror Group had assessed other DSR schemes, such as frequency response, which would require the firm to turn down output within 30 seconds but felt that the modifications needed to its building management system were not cost effective.

The firm is now evaluating battery storage as a means to deliver balancing services to National Grid, said Crask. te

Cost-effective communication with assets

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eactive Technologies has demonstrated what it claims is a first in energy communications technology following a successful nationwide project with National Grid and SSE. Reactive’s Grid Data and Measurement System (GDMS) technology offers a cost-effective way of communicating with electrical assets or devices connected to an electricity network, marking a significant step towards a smart energy revolution.

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Traditional approaches to communicating with assets require a reliable internet or mobile communication connection in addition to an individual meter, which can prove financially prohibitive and limit the viability of DSR schemes that incorporate thousands of smaller assets.

Many assets are excluded from existing DSR arrangements due to a lack of remote connectivity.

GDMS provides an alternative, cost-effective solution to this by using the frequency of the electricity network to carry data.

Additionally, GDMS will give electricity network operators greater insight into the behaviour of ‘prosumers’ – customers who have the ability to generate, consume and store their own electricity.

Such information is essential for operators tasked with balancing electricity networks, which are becoming increasingly complex with the increased variety of assets connected to them.

GDMS will allow network operators to reduce costs and pass savings on to electricity consumers by improving the

accuracy of forecasting models.

National Grid director Cordi O’Hara said: “We are proud to be part of this groundbreaking project, which has demonstrated the successful transmission of data through the electricity grid over long distances, critically passing through transformers and with a broad coverage.”

GDMS allows for faster, automated responses from assets so they can be used for higher value, system-critical, load-balancing services like frequency response. te reactive-technologies.com

October/November 2016

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DEMAND-SIDE RESPONSE Knoydart’s rugged beauty bring tourists flocking from far and wide but it s remoteness means it has to relie exclusively on locally generated power

Management system helps balance hydro-power network In recent years, it has become almost a tradition for the power network in Inverie on the Knoydart peninsular to trip over during the Christmas and New Year winter holiday – but all this has changed with the upgrading of the local hydro-power generation system and the design and installation of demand management technology by Energy Assets

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noydart is a peninsular situated between Loch Nevis and Loch Hourn that relies exclusively on locally generated power because it is not connected to the National Grid. Indeed, the community of 120 residents and local businesses are also cut off from the UK mainland road network, making access possible only by boat or on foot. It is this very remoteness and the landscape’s rugged beauty that brings tourists flocking from far and wide.

Day-to-day life in Inverie, the main village on the peninsula, relies primarily on hydro-power (with a back-up diesel generator) on a 6km grid stretching along the bay. This serves homes, the primary school, post office, shops, the Knoydart Pottery & Tearoom, guesthouses, selfcatering accommodation, hostels and The Old Forge pub – where the pier is located for boat access to and from the peninsula.

In order to prevent outages

26 October/November 2016

during the peak winter period and to prepare the electrical system for future growth, the Knoydart Foundation, which owns the power generation, started a programme in 2014 both to increase power capacity through dam improvement work and to improve grid performance through demand-side management.

“It was clear that the demand for power within the community was beginning to reach the limitations of the power grid and therefore the board of community directors decided to take pre-emptive action to increase generation capacity and intelligently manage loads before it started impacting on the quality of life for residents,” says Kyle Smith, Knoydart renewables operations manager.

“The community faced repeated instances in periods of high demand – particularly during the holiday season around Christmas and New Year – when the network would trip.”

What we liked about the Z-Lynk system was that it communicated over powerlines, and as such would guarantee the signal reliability we needed

Working with Highlands and Islands Enterprise and a number of individual donors, Knoydart received funding for a hydro dam improvement project, which has increased the hydro output capacity from 180kW to more than 220kW. Then, together with Local Energy Scotland, Community Energy Scotland and the University of Edinburgh, a programme was launched to influence behaviour locally, with a smart lightbulb installed in a community office to provide a visual indicator (from green to red) of the power status, and a website created showing real-time power usage.

“When it came to demand management, we looked at internet-based systems and smart plugs that could switch off appliances but what we liked about Energy Assets’ Z-Lynk system was that it communicated over powerlines, and as such would guarantee the signal reliability we needed.”

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along with greater generation Energy Assets conducted capacity, to support our goal of extensive load testing on the enabling the community to grow hydro system to understand and to develop for the future.” system reliability, and when a In addition to demand-side trial confirmed that command technology, Knoydart is also signals from the Z-Lynk low investing in more energy efficient power transmitter would reach storage heating and encouraging every part of the network, residents to charge heaters Knoydart gave the go-ahead. overnight through off-peak Working together, the tariffing. In time, the Knoydart Foundation foundation hopes and Energy Assets’ that the enhanced engineers created reliability of a priority stack of the grid will loads that could enable the be switched Hydro output introduction of should capacity following in-line electric the power boilers that threshold the improvement can be operated be reached. works automatically Receivers were through Z-Lynk installed across the when there is spare network and control network capacity, thus software written to ensure that offsetting oil consumption when the hydro system came from existing oil-fired boilers. close to its maximum threshold, Alan Jones, director of progressive and automatic load technology and product switching would take place. development at Energy Assets, The load switching system is says the whole country can learn linked to a data tracker sampling lessons from the success of the power levels every 10 seconds. project at Knoydart. “We are The Energy Assets system all aware that the gap between also monitors the cumulative power generation and demand amount of time each load is shed, is narrowing, so we need thereby ensuring that switching technological solutions to switch is evened-out across several loads loads when needed to avoid of equal priority. For Knoydart, major power outages,” says Alan. this works in conjunction with “To this extent, the situation storage heaters in homes, in Knoydart is no different ensuring that no particular to the national picture – and home is discriminated against. nor is the solution… it’s just a The network can also shed matter of scale. Indeed, what loads based on mains frequency, this project proves is just how not just on power demand. valuable load switching can be “As soon as the smart switches in balancing capacity, not just were installed, everything worked for remote communities but perfectly,” says Kyle. “We now for the country as a whole.” te know that we have a demand energyassets.co.uk management system in place,

220kW

Alan Jones at the Knoydart Z-Lynk installation

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Diesel need not be so dirty, says report

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new report is challenging current perceptions on the use of diesel generators in STOR and related capacity market schemes.

Aimed at supporting utilities organisations already participating in, or exploring, demand-side response initiatives, it sets out the ‘fuel facts’ to support senior decision makers in getting the internal and external buy-in they need to maximise the possible returns from a commercial and CSR perspective.

Brian Worrall, corporate affairs director at Certas Energy, the company that commissioned the report, says: “Coming at a time when there is growing criticism about the over-reliance of diesel powered generators in DSR, we thought it was necessary to support those businesses making positive steps to a more reliable, sustainable energy future by bringing balance to the argument.”

Certas Energy commissioned the report in order to make clear the need for National Grid to create the ‘virtual’ network that has come under widespread criticism.

“As power stations are closing and renewable energy sources remain unreliable we need a medium to longterm stop-gap that addresses security of supply and sustainability issues. The capacity market can make

a difference but fuel type must be a consideration to encourage increased levels of participation and, importantly, address air quality concerns.”

With fuel type not currently an assessment parameter for capacity market participation, the report sets out why it should be a part of the criteria when tendering for capacity market schemes going forward. It also highlights the potential for next generation fuel technologies, such as paraffinic renewable diesels and innovative fuel additives, to address air quality problems – particularly reducing nitrogen oxide emissions and particulate matter.

Solutions such as GTL (gasto-liquid) formulations are presenting more sustainable and cost-effective energy management strategies, owing to their ‘drop-in’ properties.

“We simply want to address some of the concerns around ‘diesel farms’,” adds Worrall.

“As without these generators, it’s likely that increasing UK electricity demands could not be met.

Instead, we are calling for the industry to reconsider DSR and the benefits it can bring in meeting our immediate energy needs – particularly with the next generation of renewable diesels and fuel additives that are now available.” te To download the report visit: certasenergy.co.uk

We simply want to address some of the concerns around ‘diesel farms, as without these generators, it’s likely that increasing UK electricity demands could not be met October/November 2016

27

VIEWPOINT

Esos – much more than audits and compliance A new Esta and BRE guide can help businesses to gain value from Esos audits, writes Esta director Robin Hale

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he Energy Saving Opportunities Scheme ( Esos) has, for most of us in the energy community, been discussed, debated and delivered. From articles on legislation, to presentations from assessors and more recently discussions with the Environment Agency ‘compliance enforcers’, it seems difficult to understand why there are those who are still non-compliant.

With the anniversary of the first compliance date fast approaching, this round of Esos for the most part should be well and truly in the rear view mirror. But with the referendum, silence (to date) on the business energy tax reform and a need to frame the business case for energy efficiency correctly, projects identified in audits are still abound and waiting to be implemented.

Add to this the impact of reorganisations and revised strategies, then the need for the energy industry to continually reinforce ‘the Esos message’ becomes more apparent.

As part of BRE’s briefing papers supported by Esta, a free to download guide, Gaining value from Esos audits, has been published. This guide provides not only a solid overview of the ‘why and how’ of Esos, but also considers the opportunities and recommendations being identified in Buildings, Industrial and Transport environments.

From building audits, many of the recommendations are based on making the current systems (heating, cooling, ventilation, lighting) more efficient and in industrial locations includes

28 October/November 2016

the efficiency of manufacturing systems as well as the operation of the equipment.

In terms of industrial processes, key recommendations identified from Esos audits could include installing higher efficiency motors or variable speed drives, use of heat recovery, more efficient lighting and building controls and building management systems.

In all scenarios, however, a good understanding of the energy use within an organisation is needed, which is usually through a sub-metering monitoring and targeting solution (M&T), which is preferably automated.

Where permanent meters have not been installed, portable meters can be used to measure the actual energy use for some equipment and help to Establish a base load profile. Without metering of the various operational stages and an understanding of a whole cycle of operation, you cannot develop a complete picture; and reviewing the entire process from start to finish is critical for the right savings to be made.

It is important that businesses consider and take maximum advantage of the Esos audit reports to help reduce their overall organisational energy consumption and manage risk to the business.

As an example, a recent Esos audit of the RSA Insurance Group identified estimated annual savings of £81,277 for their buildings. This included measures such as lighting replacement, improved building management system controls, employee engagement and the installation of renewable energy.

Esos… should be viewed as an integral part of an energy strategy, rather than the view previously taken that this is additional short-term compliance reporting

Although we haven’t touched on transport in this article, the same group identified cost savings of £191,108 that could be delivered through initiatives including the introduction of minimum vehicle standards for grey fleet and hire cars and investment in ‘Smarter Driving’ training.

Co-author of the paper Dr Andy Lewry, principal consultant, Sustainable Energy Team at BRE, stated: “The business and financial value that energy efficiency delivers is considerable. Esos compliance should therefore not be seen as a tick-box exercise but rather a great opportunity to harness and optimise that value”.

As time ticks on, and we begin to roll towards consideration of the next audit, there is an opportunity to plan and identify all of the options generated from this compliance exercise: ie which route should be taken and more importantly that this should be viewed as an integral part of an energy strategy, rather than the view previously taken that this is additional short term compliance reporting.

Key to the next stage will be benchmarking; for some this will highlight progression, the path to a more efficient use of energy and understanding that any investment made should be beneficial to the business, not just in financial terms, but also social and environmentally. te Briefing papers on Gaining Value from Esos Audits, as well as Energy Management and Building Controls can be downloaded for free. Links can be found at Esta.org.uk

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TRIADS

Better Triad warning signals Generating richer Triad warning signals – VuePoint’s Mike Coulten explains how its Triad warning service operates in a area where it is getting more difficult to predict them

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s we enter the 2016/17 Triad season many electricity consumers are reflecting upon which Triad warning services to use and how to plan their Triad charge avoidance strategy after many Triad warning services missed a Triad last winter. A Triad is defined as the top three half hourly system demands between November and February, separated by at least 10 days. TNUoS charges for the whole year are then calculated on metered consumption during these three Triad periods so consumers reducing consumption during these three Triad half hours can realise savings of tens or even hundreds of thousands of pounds.

Triad periods are calculated after the end of the Triad season on the latest view of system demand at that time so the challenge for a Triad warning service is to determine if a period one day ahead is likely to be a triad without the luxury of hindsight.

Winter 2015/16 and the Triad that most warning services missed The majority of services missed calling a Triad warning for the 25 November 2015 Triad day. It is becoming much more difficult both to assess the probability that tomorrow will be a Triad period and predict the precise half hour in which this may occur. Additionally the weather forecast for 25 November was milder than outturn fooling most models into underestimating system demand on the 25th.

Reducing consumption in

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response to a Triad warning incurs costs so there is an optimal balance to be struck, unique to each consumers avoidance cost curve, between shedding load or not. In striking this balance electricity consumers need to understand the increasingly weak signals from traditional Triad warning models. Yet most existing Triad warning services use black box models to produce simple traffic light results making it hard to judge the signal and your optimum response.

To address this evolving challenge a more sophisticated simulation based Triad model is required. The key variables in a model of electricity demand are, in order of magnitude: • the time of day • day type ie Saturday, working day, first or last day of working week • time of year • Effective temperature, now and over previous days – thermal lags in buildings mean that a distributed lag function of temperature best describes demand response • illumination • underlying demand growth/contraction trend

rebased to these historic daily minimums to produce multiple weather scenarios that reflect dozens of actual historic UK weather patterns but at today’s climate change affected temperature levels and seasonality.

VuePoint Triad service We have developed a Triad simulation model using these principles and running it through the winter of 2015/16 it successfully highlighted all three Triad periods.

The model has been fully automated and is available as bolt on to our core products, Market VuePoint and Energy Risk VuePoint or as a separate standalone subscription.

Testing the model over winter 2015/16 To test our approach we simulated what the model would have output over the last winter, 2015/16, using only data that was known at the time of each days run at midday. The system demand model was estimated once using data up to 31 October 2015. Then for each day of the winter we used:

• Historic system demand (INDO) – usually up to 10 am on the run day • Historic weather – usually known up to 10am on the run day • Forecast weather for 5 days ahead • Weather scenarios for D+6 through the end of the winter The system calculates at midday each day the Day ahead Triad probability. These results are colour coded below.

Unlike many existing Triad warning services the model correctly captures the 25 November Triad and shows it as a day ahead red alert. Although the signal is weak, those acting on this signal could have saved themselves many multiples of the cost of the service.

By applying a transparent simulation approach and presenting results both as simple traffic light and actual probabilities to the user, the VuePoint Triad warning system provides information to inform consumers load management choices in relation to their avoidance costs. te vpsl.co.uk

Weather scenarios The most important unknown variable is the distributed lag of recent temperatures, not just spot temperature at the time.

Weather scenarios must have a realistic temperature profile dynamic across all half hours that reflect the actual patterns that are seen as weather systems move across the UK. A model can use actual days half hourly temperature profiles from recent years

October/November 2016

29

ESOS UPDATE

Drive for efficiency With the right approach, Esos compliance can become a powerful productivity driver, says Rob Jenkinson, director of corporate sustainability at SKF

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t may be tempting to consider the use of surveys as a simple and low cost route to Esos compliance, but we would argue that an energy management system (EMS) is the more sustainable approach. While an energy survey is a useful indicator of performance, its results are often ignored – or acted on in a half-hearted fashion. An EMS, by contrast, is a systematic, long-term approach that can drive improvements in energy performance, reduce costs and assure ‘future proof ’ compliance with legal, customer and other demands.

In fact, the benefits of a robust EMS go much further than that. SKF has driven energy management in its own operations for years, being one of the first companies to adopt ISO 50001 globally across all its major production facilities. This approach has consistently delivered yearly energy efficiency gains of 5 to 10%. But, our own experience and work with customers has also taught us that, properly implemented and managed, an EMS can help an organisation identify and eliminate multiple sources of waste from its operations, leading to significant improvements in productivity, quality and overall performance.

Those benefits come from the way an EMS encourages an organisation to think about energy consumption as an integral part of its overall activities. ISO 50001 requires the

The IoT allows technology such as shaft alignment systems to be applied widely and cost effetively

demonstration of improvements in energy performance over time.

That in turn requires meaningful performance indicators. Overall energy consumption isn’t useful here, since it would be adversely affected by desirable changes in operations – like an increase in manufacturing output due to higher sales.

Most organisations, therefore, will choose to index their energy consumption against unit output, or a similar production measure. That change reveals powerful new opportunities for performance improvement.

Take reliability for example.

Unscheduled downtime is a significant drain on the per-unit energy efficiency of a production system. Machinery often consumes energy whether it is

producing or not. Pneumatic systems leak air, heaters and cooling equipment stay on, ventilation fans keep spinning.

The longer the delay, the bigger the impact on energy KPIs. The same is true of quality issues. Scrapped products or rework don’t just waste materials and valuable production time, they mean wasted energy too.

Thinking about energy consumption in this way encourages companies to take a holistic view of asset performance, as they recognise that improving the reliability and productivity of their processes can have a greater impact on overall energy efficiency than their choice of technology or equipment specification.

Better still, measures that

An EMS can help an organisation identify and eliminate multiple sources of waste from its operations, leading to significant improvements in productivity, quality and overall performance 30 October/November 2016

improve equipment reliability and availability tend have a positive effect on service levels, capacity, flexibility, and profit.

One highly effective route to improved asset reliability and availability is the adoption of condition-based maintenance.

Advances in sensors and data analytics technologies mean an organisation can learn much about the health of its equipment by monitoring key parameters – such as temperature and vibration levels during operation. This information allows companies to take timely action to fix problems before they lead to wasteful breakdowns. And it allows them to keep equipment running when no intervention is required, reducing the cost and time required for scheduled maintenance activities.

Condition-based maintenance was once considered a costly and complex approach suitable only for the most critical assets.

Now, thanks to the Internet of Things, the technology can be applied in a much wider range of applications. SKF, for example, has recently extended its own Remote Monitoring Service, beyond marine applications into the manufacturing, process and industrial sectors. The service helps to cut the cost of condition monitoring and allows any company with Internet access to implement a predictive maintenance programme simply and cost-effectively – by providing round-the-clock monitoring and an off-site team of specialists. By outsourcing the process, customers move the cost of condition monitoring from the CAPEX to the OPEX budget. te skf.co.uk

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VIEWPOINT

Rising energy bills, skills gap and prolonged uncertainty The UK’s energy sector faces significant challenges in the aftermath of the EU referendum. However, transparency from government, investment in infrastructure and secured access to skilled labour will reduce negative implications, says Louise Kingham

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he Energy Institute invited five expert speakers from the fields of academia, renewables, utilities and the oil and gas industry to discuss the impact of Brexit on the UK’s energy sector.

One key area of debate was the relationship between the UK and the Internal Energy Market (IEM). At the very least the UK should secure observer status, and ideally access, to the IEM. At best, the prime minister should negotiate for continued membership to ensure trading continuity and lower energy prices, avoiding increased tariffs and other trade barriers.

While the EU referendum result is unlikely to affect the short-term supply of energy in the UK, the current uncertainty surrounding Brexit may inhibit foreign investment in projects at the beginning of their financial development.

The sector needs to secure an estimated £200bn for infrastructure improvements.

The question mark surrounds whether funding will be secured through the European Investment Bank and European companies. If not, will the sector request state aid or use it as an opportunity to establish new foreign investments?

Irrespective of its source, the cost of replacing power stations and nuclear plants will be expensive and ultimately consumers will potentially

32 October/November 2016

be financing the bill with higher energy prices, which will be contrary to the UK government’s objectives.

The sector is dependent on EU national workers and uncertainty about their status has caused concern across energy industries and academia. A possible skills gap would be highly damaging for business, research and innovation and academia, not to mention challenges to drawing in students to study at UK universities.

The UK government needs to prioritise this issue and protect the status of skilled EU workers while simplifying the processes of their movement.

Industry leaders, companies and academia can only predict the outcome of Brexit on the UK energy sector.

There is a mounting call for the UK government and the new Business, Energy and Industrial Strategy minister to outline plans and timetable for the negotiations.

This is essential to address uncertainty and reestablish confidence amongst investors.

The UK government also faces the challenge of balancing what the sector wants and what other European members will allow.

Each member will have their own interests and any UK ‘gain’ in negotiations could be presented as their ‘loss’.

Inevitably, there will be a difference between what the energy sector wants, what the

A possible skills gap [due to Brexit] would be highly damaging for business, research and innovation and academia, ot to mention challenges to drawing in students to study at UK universities.

The UK government needs to prioritise this issue and protect the status of skilled EU workers government demands and what the EU allows. But the debate also recognised there were a number of mutual wins which could quickly be taken off the table that would benefit all parties to the negotiation.

Energy Barometer report to all party parliamentary group On 25 October, 2016, EI president Jim Skea and Dr Joanne Wade, chair of the EI’s Energy Advisory Panel, presented the outcomes of the Energy Barometer 2016 survey to the All-Party Parliamentary Group of Energy Studies (PGES).

The Energy Institute’s Energy Barometer provides the opportunity for professionals in the sector to participate in debate and inform government policy, by identifying challenges and proposing solutions.

During their presentation to the PGES, Professor Skea and Dr Wade drew attention to three pressing issues highlighted by professionals: climate change mitigation, a sustained low crude oil price and the uncertainty surrounding the UK’s exit from the EU. For the second year in a row, Energy Barometer respondents named policy continuity as the biggest challenge facing the energy system.

Due to the challenges of low oil prices and Brexit, professionals emphasised the need for long-term proactive government strategy and not reactive, stagnant policies.

Stability in strategy will also support the energy sector in achieving climate change and renewable targets.

Professionals recognised the importance of communication between the government, energy industries and energy users in tackling system challenges.

The EI is in a strong position to facilitate these future conversations through the Barometer and other engagement and knowledgesharing activities. te energyinst.org

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VIEWPOINT

Shaping the future of energy From the heart of the battleground where one of the most controversial and heated US presidential campaigns is taking place, Funsho Alo soaked up the atmosphere at an engaging 39th World Energy Engineering Congress in Washington DC

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istorically, the energy agenda used to be scarcely mentioned in politics, and in business was a subject peculiar to engineers but this is now becoming more front page news than back page.

In recent times, the global will and drive to address the challenges of energy and climate change has never been stronger due to the more apparent threats to the security of energy supplies, energy affordability and greenhouse gas emission reductions.

As the energy and environmental landscape dramatically changes, it is vital the rate of development of the necessary innovation and technology at the lowest possible cost-effectively matches this fast-evolving future energy economy.

This was the main subject of discussion at the largest energy and technology expo – the 39th World Energy Engineering Congress (WEEC) – held in Washington DC on 21-23 September at the Walter E Washington Convention Center.

WEEC was presented by the Association of Energy Engineering (AEE) and the event was hosted by Toyota with several other sponsors.

The AEE, founded in 1977, is a non-profit professional society of more than 17,500 members in 98 countries. The UKAEE is a European chapter of the AEE and represents the interests of UK energy professionals with a mission similar to the AEE, which is “to promote the scientific and educational interests of

34 October/November 2016

UKAEE representatives at an evening function at the 39th World Energy Engineering Congress. From left to right: Funsho Alo (UKAEE webmaster), Yodaly Sierra-Rubio (UKAEE secretary), Maya Marisa Joelson (UKAEE guest), Rajvant Nijjhar (UKAEE president) those engaged in the energy industry and to foster action for sustainable development”.

WEEC is a fantastic event for energy professionals.

Particularly as an engineer, it was a wake-up call for us to shape the energy future we would like to see.

Governments must continue to be consistent with energy policy and create the enabling environments for innovation in order to address the issues of climate change

A valuable experience The experience was extremely eye opening and insightful as it was great to witness experts and energy leaders sharing valuable knowledge about the fast-changing energy field and emerging technologies while making new contacts with energy professionals around the world. It was also great to see fellow energy professionals and companies both at a local and international level being recognised and given awards for their contributions and achievements in the field as

well as donations from other AEE chapters as a show of their support and commitment to the mission and values of the AEE. Furthermore, the recognition of women in the energy field was boosted by a free networking breakfast special event hosted by the Council for Women in Energy & Environmental Leadership that focused on developing a prominent voice for women in the energy industry.

WEEC was officially opened

by Ian Boylan, AEE presidentelect, and featured a keynote opening session on the ‘Race to the White House and its impact on energy policy’ by CNN political analyst David Gregory. This was followed by equally engaging sessions from JB Straubel, Tesla’s chief technology officer, who spoke on energy and technology mega trends, and John Hofmeister, former president of the Shell Oil Company, who discussed the future of affordable energy.

There were more than 250 speakers from more than 20 different countries with sessions focused on: energy security and government energy management; experiences of energy managers; energy basics and services; industrial energy management; high performance buildings and communities; industrial energy management; renewable energy and sustainable development; emerging energy trends, big data and Internet of Things (IoT); as well as energy management around the globe – discussing systems such as ISO 50001 championed by UKAEE

president Rajvant Nijjhar.

The closing keynote luncheon was delivered by US secretary of energy Dr Ernest Moniz, who reminded us that governments must continue to be consistent with energy policy and create the enabling environments for innovation in order to address the issues of climate change.

Willingness to work together In view of this, the uncertainty of Brexit and the quick ratification of the Paris agreement to limit global average temperature increase to 1.5˚C by reducing greenhouse gas emissions and building a cleaner global economy, there is evidently one common message: the willingness of countries to work together and nationally is extremely vital.

The Oxford Institute of Energy Studies suggests that for the UK to successfully address the energy trilemma, the UK has to move away from an economy driven by fossil fuels, an economy where energy is based on a centralised, supply-side approach and which relies on old technologies and outdated business models.

The UK has to empower consumers through providing them with information, choice and through creating flexibility to manage demand as well as supply. The UK has to “move away from a fragmented system characterised by uncoordinated national policies, market barriers and energy-isolated areas”.

Therefore, the Brexit negotiations for an effective and coherent UK energy policy must consider some points such as the continued adoption of EU energy policies, the single energy market, the Energy Union and research and

development among others.

UKAEE secretary Yodaly Sierra-Rubio, in a session delivered on ‘UK International grid interconnections: from zero to hero with the Energy Union’, suggested that the energy union in the UK will happen with or without direct political intervention and regardless of Brexit, primarily because of favourable political, economic and infrastructure conditions.

Putting this in perspective, one can begin to understand the underlying decision of the recent green light on Hinckley Point nuclear power station.

One important thing that dawned on me throughout the event was that, as engineers, we have a very important role to play in securing a sustainable energy future. We all have to continue to develop ourselves in order for us to be able to innovate and create the much required technologies and solutions of the future. te Funsho Alo is webmaster for the UK Association of Energy Engineers (UKAEE) The UK Association of Energy Engineers covers a range of expertise in the energy management and energy efficiency sectors. It delivers a range of technical focused 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

As engineers, we have a very important role to play in securing a sustainable energy future theenergyst.com

VOLTAGE OPTIMISATION

Stabilising volatility: the key to a renewably powered UK Voltage stabilisation may not be that familiar to many but it soon will be. Duncan Biggins, managing director of e-fficient Energy, explains why VS is becoming essential

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oltage stabilisation is about stabilising the UK’s mains voltage supply so that a firm’s equipment and plant are not damaged by peaks, troughs and surges in the mains voltage.

This is more and more relevant; today UK mains voltage is becoming ever more volatile. This is largely because of the increasing mix of renewables coming onto the Grid and the forthcoming closure of ageing nuclear and coal-fired power stations.

The problem is this: renewables are not always ‘on’ because the sun does not always shine and the wind does not always blow.

When wind does blow, power peaks, then troughs when it drops. This causes mains voltage fluctuations, and these feed straight into your kit – be it a computer or a blast furnace. Peaks and troughs in voltage level can seriously damage equipment and reduce its lifespan.

For the first time on record, wind turbines generated more electricity than was used in the whole of Scotland on a single day.

That is great news but it shows the extent to which renewables are now powering the UK, and therefore the extent to which Grid fluctuations are a real danger.

Mains stability is essential and the best way to deliver it is not to wait but to install VS yourself.

Every single piece of

36 October/November 2016

You simply can’t afford for peaks in voltage from the mains to damage and shorten the lifespan of your crucial business assets

equipment – from lighting to freezers, production plant or computers – is affected by mains voltage. Keeping voltage safe and controlled across your estate is essential.

The switch to VS is happening across the world in tandem with the renewables revolution. But how does it actually work?

The basics VS systems use latestgeneration semiconductors controlling the output from specially designed multi tap transformers. These provide plant and equipment with stabilised voltage, ironing out peaks and dips from the Grid before they hit your essential kit.

The e-ST voltage stabilisers can be designed to accept an exceptionally wide range

of voltages (-65 <+45% of a 400V nominal voltage).

The solutions are specifically designed for use in areas where the electrical supply grid is prone to sudden changes such as spikes or sags (500V/ sec rates of change). At the moment this is most of the UK. VS is an essential investment for every business.

You simply cannot afford for peaks in voltage from the mains to damage and shorten the lifespan of your crucial business assets.

VS can simply and affordably prevent this from happening. We are really keen to see renewables coming online in the UK; our role is to enable this transition by making the power they generate reliable and safe for end users. te e-fficientenergy.co.uk

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BEHAVIOURAL CHANGE

Watch this space…

Graham Bird, strategic space consultant at Baker Stuart, explains how energy consumption in the office can be reduced through workplace observations and behavioural analysis

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hen it comes to making improvements to a working environment knowledge is king. Over the years, workplace analytics have allowed us to better understand how our workplaces function, and most recently, the analysis of human behaviour has presented us with an even closer understanding of workplace efficiency. We are now able to make informed, rational decisions about office improvement based on evidence.

However, the benefits of workplace analysis can go further than workplace efficiency. These same methods of analysis are now proving to be beneficial when it comes to managing levels of energy consumption in a working environment.

What is ‘workplace analysis’?

Typically, the analysis of a

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workplace focuses on the use of a space, and involves hourly observations of every single area within an office environment – usually over a period of one working week.

Here observations are made and details regarding desk occupancy, fixed location usage, vacant space and staff presence are recorded on a handheld tablet or device. This data is then collated and an understanding of how the space is used is formed.

Most recently, behavioural activity has become the subject of workplace analysis. Here, the assessor will observe the actions of each staff member, whether it is a group collaboration, recreation, solo task, informal discussion or formal meeting etc. These exact behavioural details are recorded within the precise location at the time that the activity occurs. While these findings can dictate how a workforce performs, obtaining

the facts about how staff behave can also provide critical data in terms of how energy can be managed or reduced.

Unused space and downsizing The first thing a utilisation or behavioural assessment will reveal is the staggering level of unused space that often goes unnoticed in a working environment. Typically, the average office is only ever 54% occupied – which indicates that there will inevitably be various ways of adapting your environment to lower energy usage. Often ‘signs of life’ such as a laptop on a desk, or a coat over a chair, mislead us into thinking these spaces are being utilised.

Accurately assessing space usage will reveal that you are unnecessarily lighting, heating, cooling and maintaining unused areas. The best way to address this will be to

Accurately assessing space usage will reveal that you are unnecessarily lighting, heating, cooling and maintaining unused areas

a screened booth or pod with analyse behavioural activity limited acoustic baffling. This and evaluate what it is your kind of space will free a large staff are doing. For example, area up, and by sharing the are there large numbers of open plan resources such as staff in meetings that leave heating/cooling and lighting their desks unmanned for long it will not need additional periods? Are staff regularly energy or maintenance. If you collaborating around desks? Are have a number of meeting they meeting informally â&#x20AC;&#x201C; and rooms on a floor or building, are these meetings incidental? you can imagine the overall Using the findings, you benefits of understanding what may discover that break happens in these spaces. out spaces, pods, team or collaboration zones, project Measuring use rooms, recreational space Workplaces inevitably or contemplative areas will change and therefore regular consume less space, and assessments should be made therefore energy, than having as to whether features are fixed workstations for every utilised. Recreational spaces, for single staff member. example, may consume high Downsizing according to levels of energy and space but utilisation, and adapting your may be seldom used. You may space in relation to staff activity, discover that phone calls are will place you in good stead made in this area 55% for beginning to of the time â&#x20AC;&#x201C; so manage energy maybe a simple consumption phone-booth more efficiently could replace â&#x20AC;&#x201C; as well as the need for providing The space that this space. an improved is wasted in a Observations workspace. of usage can typical office also be made Meeting rooms in terms of using Designated meeting share points and rooms are a perfect features such as printers, example of space that is water coolers, televisions, underused, and these can have vending machines and a significant impact on energy photocopiers, enabling you consumption. For example, to assess the necessity of 68% of meetings are between providing such equipment. two and four people, yet most buildings have rooms that Adapting to behaviour cater for eight, 10, 15 or more.

Analysing staff behaviour will At first glance, you may be also give you an understanding under the impression that these of the times when energy usage rooms are always fully booked. can be reduced. For example, However, behavioural analysis the results of a workplace may reveal, firstly, how often analysis project will provide this room is used, and secondly, an insight into the times when what people are doing in it workers arrive and leave. For and most importantly why. instance, worker presence on It may be, for example, that Fridays has plummeted due to it is used 72% of the time for home working trends but most contemplative work. This businesses have not adapted to knowledge will tell you that for suit the drop in staff. Analysing the majority of the time a large behavioural patterns will offer room is used for one or more you the data to enforce such people looking to concentrate. changes and adapt energy A space that will be more consumption accordingly. te appropriate for this activity bakerstuart.com can be developed by adding

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MONITORING & TARGETING

A healthy saving A health centre in Lancashire has reduced its gas consumption by an impressive 52,000 kWh per annum by replacing its existing building management system with Priva Blue ID, introducing class-leading levels of reliability and ease-of-use in the process

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t Mary’s Health Centre in Penwortham near Preston provides high-quality general practice healthcare to patients in the vicinity. The facility’s doctors, nurses and other staff are dedicated to offering a professional service, and part of that is being a responsible and efficient energy user.

According to John Allen, engineering manager at Rydon, the appointed maintenance company at the health centre and a number of other NHS trust sites in the area, the previous BMS system at St Mary’s was constantly breaking down and the front end was far too complicated.

Allen says: “I had a recommendation from a peer

installation, engineering and commissioning services for the project, adds: “The existing BMS was unreliable and expensive to repair. What’s more, every time it failed the system required reprogramming.

“Priva Blue ID was proposed as the ideal cost-effective and reliable replacement.

Its flexibility makes it suitable for most projects.”

saying that Priva technology was good value for money, reliable and easy to use. In fact, the quote for installing a new Priva system was almost the same as buying only two

replacement controllers from the existing BMS supplier.”

Andrew Chapman, director at Eco Electrical & Building Services, the Priva Partner that delivered the

Priva Blue ID with Touchpoint Eco Electrical & Building Services set about installing Priva Blue ID S10 controllers incorporating standard digital and analogue I/O modules plus 7” Touchpoint display.

The building management system is being used to

Wireless current sensors for monitoring

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usinesses can now understand exactly what devices are consuming electricity and get accurate real-time breakdowns in a cost-effective BEM system.

Wireless sensor expert SmartSensor Labs has released an energy management solution that allows building owners to achieve clear device and plant level ROIs, device level energy operating efficiencies and end-to-end awareness of usage, comfort and faults.

The sensor is self-powered from the magnetic field produced when current flows through the monitored cable; it does not require any maintenance or batteries to be

40 October/November 2016

replaced. The sensor integrates LoRa technology, a long-range wireless communication for low-powered sensors that operate at a low bandwidth.

This communications technology has a greater

range than standard wireless network technologies such as ZigBee, Z-Wave, Bluetooth and Wi-Fi, which are typically limited to a floor or a plant room in a building.

As a LoRa Alliance member, a promoter of IoT technology, the SmartSensor Labs device is LoRaWAN compliant. LoRaWAN is a structured network covering a geographic area where an operator, such as a Telco, is managing the network and its internet connectivity.

LoRaWAN-compliant sensors and devices simply connect to the internet, cloud services and applications. They do not need gateway devices to provide the internet connectivity link.

This provides sensors with the

convenience of the always-on network previously associated with a cellular network but the device power requirements of LoRa are significantly lower, similar to Bluetooth Low Energy or ZigBee. The rapidly expanding deployment coverage for LoRaWAN is realising new opportunities for IoT sensors, M2M, civic, commercial and industrial applications within smart cities.

The immediate deployment focus for this energy management solution is LoRa private networks where a single LoRa gateway maybe cover a number of buildings on a science park, business park or university campus. te smartsensorlabs.com

As a next generation BMS, control boiler plant, variable Priva Blue ID is therefore temperature radiator heating equipped with a state-of-theand domestic hot water. art Touchpoint offering high It was installed over widescreen resolution (800 three days during the x 480 pixels). Its capacitive autumn of 2015. screen allows users to operate “In the 12 months since, a room or control panel in St Mary’s has enjoyed a 22% a very intuitive manner, saving in gas consumption while navigating through the in comparison with the various operating elements is previous system,” says performed by swiping.

Chapman. “What’s “The front end more, reliability looks like a has improved mobile phone immeasurably.” and you don’t Priva Blue need to be an ID hardware The yearly saving engineer to consists on the health understand of a base it,” says Allen. on which centre’s gas bill “This means individual that if there’s functional an issue, I can call modules, any of my team who containing all missionhappen to be on site, such critical components, can be as a plumber or a joiner, and installed. Wiring takes place ask them to have a look at the on the base, which is robust front end and tell me what and insensitive to failures. it says. The project has been so successful that I now have Next-generation control Priva units installed at four User-friendly operation is other sites, with plans for also crucial for attaining more moving forward.” te optimum performance from priva.co.uk a building control system.

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Freeze on energy spend Supermarket chain Iceland Foods has connected the Utilitywise t-mac intelligent building energy management system (BeMS) across its 850 stores achieving a 15% saving in its store lighting bill in the first year and more than 3,100 tonnes of carbon equivalent.

Employing the services of the Utilitywise Energy Services team, Iceland installed the t-mac BeMS to connect to lighting across its multiple sites to ‘control’ how and when it used energy.

Through the t-mac BeMS cloud-based software, the retailer has gained full control of its lighting during occupied, unoccupied, and trading periods.

Store lighting has been split

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into zones and controlled via a combination of timed outputs, alarm interfaces, and presence detection. Some stores have also seen the connection of AHUs allowing for remote control of internal environmental temperatures and remote fault-finding for maintenance purposes.

The t-mac BeMS will allow load shedding activities for all Iceland sites, reducing costs at the high-peak DUoS and TNUoS times. Via warnings from the Utiltywise Energy Markets team, the t-mac BeMS will action preprescribed load shedding reducing TRIAD charges.

Iceland expects further savings of up to 10% from this strategy. utilitywise.com

COMMERCIAL HEATING

Sizing up efficiency The UK’s building stock offers huge potential for efficiency savings. When it comes to heating, we have the technology. The challenge now is to engineer for maximum performance, says Remeha sales director James Porter

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aste not want not, goes the saying. In today’s uncertain times, energy efficiency is more important than ever. Often referred to as the first fuel, energy efficiency is pivotal to solving our energy trilemma – improving national energy security, reducing carbon emissions and delivering substantial cost savings.

The UK’s non-domestic building stock offers huge scope for efficiency improvements. The Building Research Establishment (BRE) estimates that 60% of the buildings that will stand in 2050 have already been built. Of these, 40% pre-date 1985, the year that Building Regulations regarding fuel and power were first introduced under Part L. For the nation to achieve the government’s emissions reduction target of 80% by 2050, it is vital we address the energy performance of our existing buildings. And the financial argument for refurbishment is equally strong, with lower operational costs protecting profitability.

Where to start?

Heating is the largest singleend user of energy in a building, responsible for about half the total energy use. As such it offers the potential for considerable efficiency gains.

With a high proportion of nondomestic buildings still relying on commercial boiler plant for their heating, retrofit is a quick win for energy savings.

Replacing any inefficient boilers with high-efficiency

42 October/November 2016

Efficient and reliable heating has been achieved at Liverpool’s St George’s Hall by installing multiple floorstanding boilers in both plant rooms

With a high proportion of nondomestic buildings still relying on commercial boiler plant for their heating, retrofit is a quick win for energy savings

condensing boilers and adding controls can bring savings of about 30%, according to the Carbon Trust.

In our experience, the figures can be still higher. At Northumbria University, for example, monthly gas usage fell by 40% on average following boiler replacement projects by the university’s Campus Services. At Trinity Building alone, the new boilers cut fuel bills by more than £5,000 in just four months, reducing emissions by 32 tonnes.

Why, then, with such potential for increased efficiency, are so many modern and existing buildings still underperforming? With condensing boilers we have the technology to effect real change.

The challenge now must be to engineer for maximum building performance through smart system design.

Accurate sizing When it comes to maximising heating efficiencies, the first crucial step is accurate calculation of the output demand. In some buildings the heat output will need to be increased to meet current demand.

In others, refurbishment to the building fabric may have reduced the load requirement.

So it is advisable to avoid ‘like-for-like or equivalent’ boiler upgrades as this fails to take into account the changing use of the building.

Historically, there has been a tendency to size the heat output to meet the maximum requirement – usually to ensure reliable heating provision even at periods of peak demand. The

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boilers in both plant rooms building are operational, this at St George’s Hall, it has is an important consideration achieved efficient and reliable for energy managers. heating while simplifying Small plant rooms can maintenance for immediate present obstacles when it and long-term gain. comes to floor planning – Wall-hung boilers are a especially when there is a popular choice in buildings requirement for increased requiring lower output due output. This is where physical to their extremely compact, size plays a part. The lightweight design. A key more compact and advantage of wall-hung lightweight boilers is their ability to be design of installed on a preconfigured modern cascade or rig system for quick condensing and easy connection to the boilers Multiple boiler The saving that can be existing system. The units supports design achieved by replacing an can be wheeled into the plant the drive Commercial inefficient boiler with a condensing boiler and room for easy connection, for more boilers are adding controls making this an outstandingly accurate sizing designed to adapt simple, quick and effective with flexible to variable heat approach to high-performance, design options demand with an energy-saving heating. and easier installation. integrated modulating feature Adopting this rapid, highFloor-standing boilers that matches the system load. quality approach has brought are the boiler of choice for The Remeha Quinta Ace 160, both improved comfort and buildings requiring high heat for example, can deliver up to impressive savings to Sandbach output. The smaller footprint 161.5kW, reducing to just School in Cheshire. The school of modern floor-standing 34.6kW when required. A refurbished two plant rooms boilers makes them ideally system designed around during the summer holidays suited to modular design. multiple fully modulating following a problem with failing Where space is particularly condensing boilers will increase boilers. Contractor restricted, consider installing the turndown ratio and improve TBR 24-7’s recommendation boilers with back-to-back or the modulation capability for was to install six Quinta side-to-side configuration more energy-efficient heating.

Pro boilers in cascade options for greater flexibility The boilers, too, perform formation. In a win-win in floor planning design. better in this design. By sharing result, this has increased It is a solution that the load, they can operate at the heat output to meet the has brought numerous part load where they achieve new demand and achieved benefits for Liverpool City their higher efficiencies. energy savings of £3,000 in Council. By installing the first four months alone. multiple floor-standing Get in control The third step is to add the appropriate control. Adding a An advantage of wall-hung boilers is that sequential control ensures that they can be installed on a preconfigured the boilers operate effectively rig system for quick for easy connection such as here at Sandbach School and reliably, rotating the lead boiler and lengthening the serviceable life of the boilers.

A weather compensated control helps the boilers adapt to the fluctuating demand according to the outside temperature to ensure greater savings.

Fitting multiple boilers brings numerous benefits, increasing the lifecycle of the boilers and simplifying maintenance and service – all of which brings further financial savings. Given that 80% of the lifetime costs of a problem here is that the system can deliver too much heat, wasting energy and producing unnecessarily high running costs. For a more accurate assessment, calculate the minimum as well as the peak output.

The next step is to design a system capable of matching the fluctuating load to deliver maximum performance and reliability.

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Maximising efficiency Manufacturers are constantly innovating to improve and support high efficiency heating.

The latest additions are compact, powerful wall-hung boilers with high output up to 160kW. In small plant rooms, these small and mighty boilers offer new opportunity to move large outputs away from the floor and onto the wall. Options to operate the boilers in multiple output cascades with lower output models provide even greater design flexibility for more accurate load matching.

Investing in the future In condensing boilers we have the technology to address the energy performance of the UK’s existing building stock. But this is just the first piece in the puzzle. Accurate sizing, smart multiple-boiler design, advanced controls and – the final piece – thorough commissioning are key to maximising efficiencies.

With impressive immediate and long-term saving potential and rapid financial payback, this is a sure investment for a greener, safer, more profitable future. te remeha.co.uk

October/November 2016

43

COMMERCIAL HEATING

Economies of scale Large heatpumps are the only scalable renewable heating technology capable of becoming zero carbon by 2050, claim renewable experts

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investment. Universities and ndustrial-sized district large estates such as airports heatpumps that draw have focused on electrical warmth from the air, rivers, decarbonisation largely ignoring lakes, the sea and the ground heating and cooling. When the are expected to play a key role government support of the RHI in achieving COP21 carbon ceases beyond 2021 they will reduction targets because “they have to invest in the technology are the only proven, viable but with no financial support. technology capable of delivering The only barrier is a likely zero carbon heat in a large scale”. strengthening of the grid but it The Future of Thermal isn’t as simple as some show it Energy Conference at Warwick with high gas use vs much lower University on 10-11 October electrical supply as both lines emphasised the importance of on the chart have peaks and reduction in emissions by 5050.”. the government’s new focus on Nicky Cowan, technical troughs, both have efficiencies As well as the decarbonisation decarbonising heat. A compelling engineer for Star Renewable not yet realised freeing up of heating technologies by 2050, line-up of experts also examined Energy, highlighted a number capacity and so while there might all new investment in heating the positive impact driving of incentives and benefits that be local constraints overall the will have to be zero carbon forward investment on low heatpumps offer: “Proven bottle neck is far ahead so we by 2035 in order to meet the carbon renewable energy renewable heating can right now take advantage ambitious target. For now, the will have on the UK technologies that of the decarbonised grid at Committee in Climate Change economy and the avoid burning 350g/kWh of CO2 equivalent, has already identified a gap wider industry. gas, particularly of approximately 100MtCO2e Moving large district deploy heatpumps over 350% away from heat pumps, efficient and reduce emissions between the likely reductions combustion are becoming versus gas by over 50%”. from current plans and the The efficiency of technologies one of the Thomas Nowak, secretary reductions required by the fifth heat pumps vs 50% will help current most talked general of the European Heat carbon budget. In recognising for gas heating policies get back about topics Pump Association, added: this shortfall, the government on track to meet for governments “We know heating and cooling has committed to come up the UK’s carbon and increasingly are responsible for 50% of the with an ‘emissions reduction commitments. Jonathan recognised as the best energy demand used in Europe plan’ to address decarbonising Graham, head of policy for the way to combat climate change. today. We also know heatpumps of heat, later this year.

Association for Decentralised We have shown efficiencies far can efficiently provide both Dave Pearson, director Energy, differentiated between in excess of those used to model at the same time. So the only of Star Renewable Energy, technologies that save CO2 in the energy systems. This and the logical conclusion is that said: “Despite ignoring the rapidly decarbonised electricity heatpumps become a central cooling opportunities from medium-term, such as gas CHP, grid show large heatpumps part of the decarbonisation of the large heatpumps and using and those that fully integrate with to be a solid performer now system in order to realistically quite pessimistic efficiencies, the grid’s natural decarbonisation that only get even better as deliver COP21 carbon targets.” government research shows the progression, making heatpumps the grid totally decarbonises.

The resounding message future heating demand will be a long-term and potentially “According to the Committee from the conference was the mostly met by heatpumps. While zero carbon solution. on Climate Change, heating importance of decarbonising gas being cheap and electricity For Trevor Whittaker of may have to almost fully heat and investment in low being expsensive is counter Aqualor, who took installation decarbonise if the UK is to hit carbon renewable energy. te productive at present, the RHI and operational costs into its long-term goal of an 80% neatpumps.com makes heatpumps a future proof account, heatpumps are also a financially sound solution: “Heatpumps have higher Despite ignoring the cooling opportunities from large installation cost than a gas CHP heatpumps and using quite pessimistic efficiencies, but much lower operational government research shows the future heating demand costs at only 4% of capex and will be mostly met by heatpumps will last well beyond 20 years.”

350%

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COMMERCIAL HEATING

UK’s ‘hidden’ power stations set to ease stressed grid The flexibility of 2,000-plus CHP plants could make space for more green power, argues Flexitricity

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heating system already used across the UK has the potential to boost the amount of power generated by renewable sources – and even partly replace fossil fuel power stations.

Latest figures show there are 2,102 CHP plants in the UK, with a combined maximum electricity generation of 19,900GWh per annum – enough to power more than 4.8 million average UK households.

Those plants also generate heat – enough each year to warm 3.8 million average UK households (about 14% of the UK total).

Many of these systems can turn up or down as the amount of electricity produced by renewables such as wind and solar changes, creating room for more green power on the grid.

Flexitricity has plans to harness that hidden potential and help drive a renewable revolution. Dr Alastair Martin, Flexitricity’s founder and chief strategy officer, says: “Combined heat and power

Many businesses have untapped value in their CHP plant and others have yet to take up the CHP opportunity systems have an important role to play in a modern decentralised energy system.

“These systems are remarkably flexible and are often not used to maximum capacity, meaning they are ideally suited to responding at short notice to meet shortfalls of energy when the grid needs it without any undue effect on the system as a whole.

“Where a CHP system is running most of the time, it can back off when there’s a lot of wind or solar energy around and keep homes warm using its heat store.

This makes CHP the perfect partner for renewable energy.

“So not only can CHP provide cheaper heat and power, it can in fact play a significant role in enhancing the security of supply throughout the UK. This is especially the case when users participate in demand response by adjusting demand or generation when the grid is under stress.”

One in 10 of the UK’s CHP plants uses renewable fuel, with the majority (71%) being powered by natural gas.

Stephanie Clark, policy manager at Scottish Renewables, comments: “In the past, large power stations close to centres of population provided our electricity. But that’s changing: renewable sources provided 24.6% of the electricity generated in the UK in 2015.

“As the supply from those wind, hydro, solar and other generators fluctuates, the grid of the future will flex to accommodate their energy in the most efficient way possible.

CHP, along with energy storage and measures like demandside response, could present a part of that solution.”

Tim Rotheray, director at the Association for Decentralised Energy (ADE), adds: “Flexible CHP tackles all three parts of the energy challenge: they are secure, affordable and low carbon. And beyond this, CHP plants make a real difference to the competitiveness of British businesses from heavy industry to leisure centres.

“By adding in flexibility, CHP plants can bring greater value to the energy user and help control the cost of the energy system to all consumers. Many businesses have untapped value in their CHP plant and others have yet to take up the CHP opportunity.”

Martin concluded: “CHP systems are becoming more popular as the benefits of moving to localised district heating systems become more widely recognised.

“So while significant potential exists now, this could be even greater in future. Now is the ideal time for owners of CHP systems to investigate how they can harness the true potential it offers.” te flexitricity.com

Flexible CHP in action Thameswey Central Milton Keynes was set up in 2005 to build and operate a low-carbon CHP energy station. Thameswey has been reliably providing reserve energy to National Grid through Flexitricity since 2011. Along with providing ShortTerm Operating Reserve (STOR) and triad management, it has played a key role in supporting Western Power Distribution (WPD) with Project FALCON (Flexible Approaches for Low Carbon Optimised Networks).

Using two gas CHP engines, which can be made available to Flexitricity when not required for local generation, Thameswey is able to provide 6MW of generating capacity during times of system stress and to support the transmission system during winter peaks. This provides Thameswey with an additional

46 October/November 2016

revenue stream of more than £100,000 per annum.

Sean Rendall, operations manager at Thameswey Central Milton Keynes, comments: “The entire process has been flawless from start to finish, with no interference on our core business activities. It provides a valuable source of revenue, and has enabled Thameswey to play its part in contributing greener reserve power supplies to the grid.”

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COMMERCIAL HEATING

Hot property Vinci Facilities’ Gabriel Hurtado González discusses what you need to know about the Heat Network Regulations in relation to the UK property sector

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t is a well-known that the UK property sector is heavily regulated, with energy efficiency measures such as Esos, EPCs and P272 among many others.

However, there are other regulations with implications for the sector that have slipped under the radar.

In particular, the Heat Network Regulations 2014 and the impact on multi-tenanted buildings. These regulations state new rules in regards to installing meters for recording details of communal heat schemes or monitoring usage.

Currently, tenants in multitenanted buildings pay a fraction of the overall building’s heating, cooling and hot water costs. Unlike electricity, sub-

48 October/November 2016

Landlords of multi-tenanted properties are required to assess the feasibility and fit heat meters

metering is limited and the floor area is used to estimate a reasonable percentage of the total costs. Although simple and straightforward to calculate, it presents no incentives for turning the heating off.

Not acceptable The regulations suggest this methodology may not be acceptable, and landlords will be required to give tenants actual information based on their real gas consumption.

This approach will significantly contribute to further improve energy efficiency.

These regulations are beneficial to building tenants and occupiers, although application falls directly to the landlord. The

main responsibilities for heat suppliers under these regulations are the following: • Notify the National Measurement Office (NMO) accordingly of the operative heating systems that are subject to the regulations.

The notification has to include full information of the final customers, building supplies and location of the heat networks • Fit individual heat meters if technically feasible and cost-effective. If this is not the case, then the heat supplier must fit heat cost allocators and thermostatic radiator vales (TRVs).

The feasibility of fitting heat meters has to be evaluated every four years

Sponsored column

Reduced surface tension improves system efficiency

• Provide customers with a bill based on accurate data at least once a year Both communal heating and district heat networks are subject to the Heat Network Regulations. A district heat network is regarded as a centralised system for the generation of hot water, cooling or heat that is supplied to at least two buildings. In the UK, there are approximately 1,800 district heat networks.

However, there is likely to be an extensive number of facilities that provide communal heating, such as distribution of hot water, cooling and heating from a central source to two or more customers within a building, and hence all the multi-tenanted commercial buildings will be included.

Legal obligations Some of the provisions of the regulation are already in force. There have been legal obligations on heat suppliers to supply tenants with accurate heat billing information and to inform the NMO of the heating systems that are included in the regulations.

The next target date is close; by 31 December, landlords of multi-tenanted properties are required to assess the feasibility and fit heat meters.

The government estimates that for the majority of the existing facilities with communal heating, heat metering will be both feasible and cost-effective.

The NMO has facilitated a heat network viability tool and further information to assist with the evaluation and implementation of the regulations.

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Key steps There are six key steps every landlord should take in order to comply with the regulations successfully: • Record all the buildings where there is communal hot water, air conditioning and heating. These properties should have been registered with the NMO by 30 April, 2015 • Evaluate the feasibility of installing heat meters • Fit heat meters by default when a property is refurbished • Get advice on how to charge tenants for the hot water and heating • The Heat Network Regulations give full control to building users.

Consequently, replacing the central hot water systems with electric heaters would be a simple and cost-effective alternative • Better metering provides good quality data and better energy management.

Landlords could use this data to develop trends and patterns of use to minimise gas consumption or to optimise the operation and maintenance of the hot water systems, ie identify potential leaks or when the pumps are due to be changed The ultimate aim of the Heat Network Regulations is to make users of hot water, cooling and heating aware of their gas consumption levels. This would not only optimise operation and maintenance strategies but, most importantly, would encourage better approach to energy management. te vincifacilities.com

It is well-established that imperfections in a heat exchange surface can have a negative impact on heat transfer.

Tony Willis of Sabien Technology explains how a CIBSE awardwinning additive to reduce the surface tension of the heating fluid can improve performance.

The efficiency of heat transfer from a heating fluid in radiators, air handling units and heat exchangers is influenced significantly by the condition of the heat exchange surfaces. Anything that reduces the contact between the heating fluid and the inner surface of the heat exchanger will inevitably reduce the rate of heat transfer.

This is a well-recognised phenomenon and common procedures to mitigate it include power-flushing to remove sludge and scale and the addition of inhibitors to prevent further scale formation.

However, even in the cleanest, scale-free wet heating system there will be microscopic crevices and imperfections on the internal heat exchange surfaces. These effectively create gaps between the heating fluid and the heat exchange surface – gaps that the heating fluid is normally unable to enter because of its natural water surface tension.

Now, a heating system additive called EndoTherm (recently the recipient of CIBSE’s 2016 Energy Efficiency Award) reduces the surface tension within the fluid, enabling it to fill these ‘micro-gaps’ and make closer contact with the heat exchange surface.

EndoTherm, is an organic-based inert system additive that is fully compatible with existing heating inhibitors and heating system water treatment. Typical dosage to the system would be 1% of the total

system volume, and will not require further dosing for five years under normal system conditions.

Independent ‘in field’ verification on more than 50 projects has demonstrated energy savings of between 10% and 25% and paybacks typically within two years. These projects involved many different building types, ranging from schools and leisure centres to offices and care homes.

System efficiency As a result of the improved heat transfer, set-point temperatures within the heated spaces can be achieved more quickly so that plant usage and fuel consumption are reduced. In addition, the increased heat transfer can result in lower return water temperatures (delta T) to the plant room to support improved condensing by condensing boilers. Low return water temperatures may also help to improve the efficiency of low carbon heat sources such as heat pumps and CHP. Sabien Technology is the exclusive UK distributor of EndoTherm for commercial multisite applications and is offering a free pilot programme of EndoTherm this heating season to assist organisations trial and identify potential energy savings from installing the fluid in their estate. Visit our website Further information: www.sabientech.co.uk/endotherm/

COMMERCIAL HEATING

Legionella under control Heatrae Sadia has upgraded its FBM point-of-use vented storage water heater to offer higher levels of energy efficiency, greater defence against Legionella and BMS integration

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he Heatrae Sadia FBM Eco is suitable for applications such as washrooms and commercial kitchens. It can supply between two and eight basins, dependent on the model selected. Permanently plumbed and generally sited next to the point it serves, it is fed directly from the cold water mains, eliminating the need for a boiler or expensive pipe runs.

It is claimed to be the first product of its kind to be optimised for BMS and is ideal for facilities where high-level maintenance management is crucial. The unit can be monitored and controlled remotely, which means any faults can be detected and rectified as quickly as possible.

The new unit surpasses the original FBM for infection

FBM Eco: for where infection control is a core priority

control. Unlike its predecessor the FBM Eco is not cistern fed, but uses a solenoid for easier maintenance, making bacteria prevention significantly simpler. Additionally, the FBM Eco features a

Legionella Control System (LCS), which pasteurises the water every 24 hours if the temperature falls into the Legionella growth region, for complete peace of mind.

These updates mean that the FBM Eco is especially well suited to environments where infection control is a core priority, such as education and healthcare premises.

Heatrae Sadia has also launched an updated version of its R Unit vented storage water heater. The new R-Plus has swapped cistern for solenoid, and incorporates the Legionella Control System along with a higher efficiency rating.

Both the FBM Eco and the R Plus feature universal bracketing. This ensures that installs and retrofits are quick and easy, with no drill

holes necessary and minimal need for remedial work.

Richard Newman, senior product manager at Heatrae Sadia, said: “We have incorporated BMS into the FBM Eco in order to provide remote management, which makes product maintenance a simpler operation. On top of this, the inclusion of the Legionella Control System means that the unit fits in with any infection control strategy.

“Similarly, we have upgraded the R Unit to become the R Plus, which offers greater safety, better performance and intelligent fault reporting.”

The FBM Eco and R Plus ranges are both available in four sizes; 25, 45, 70 and 120 litres, all backed by a full five-year guarantee. te heatraesadia.com

Bigger and better axial fan range

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läkt Woods has announced the expansion of its JMv axial fan range, which includes a choice of sizes and is more efficient than the original.

A new and improved design means the axial fans are capable of saving 27% of running costs, which is 3%

50 October/November 2016

higher than the initial models launched just last year.

The extended offering will include five additional sizes, expanding the range up to 1,000mm in diameter (available sizes now: 315mm to 1,000mm), which can deliver increased performance due to the incorporation of an impeller spinner in the larger sized models. This is all while using less power and saving an estimated 113 tonnes of CO2 emissions throughout its operational life.

Andy Cardy, product manager – fans, for Fläkt Wood’s fans division, explains: “While we only launched

our JMv axial fan last year, we’ve continued to develop the product, to deliver expanded and more efficient range.

The new range addresses key needs of modern installers and designers, who are faced with a rapidly changing legislative environment, the impact of rising energy bills and increasingly stringent building regulations. In fact, since we launched the JMv range in 2015, the product will save around 5,358 tonnes of CO2 per year.

“JMv is already ErP compliant, and in many cases, far exceeds current and even the next tier efficiency targets.”

Specifiers and installers can gain the aerodynamic advantage by using the

Fläkt Woods Advanced Fan Selection Tool to select the best possible product. The product selection tool makes choosing the most energy efficient solution easy, ensuring that new installations benefit from the smallest possible carbon footprint, making it easier to comply with the most stringent green credentials required to achieve BREEAM credits.

JMv can also be specified with a range of speed control options which deliver a customised solution to meet specific customer needs. Control options range from simple speed controllers to inverter drives that have full BMS connectivity capability. te flaktwoods.co.uk

theenergyst.com

LIGHTING

Light and bitter Thorn Lighting was chosen to refit the lighting at brewer Adnams’ Suffolk distribution centre

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en years ago, brewer Adnams developed a new distribution centre, taking the opportunity to put its values into practice by building one of the most energy-efficient buildings in the country.

The distribution centre stores beers, wines and spirits from both Adnams’ own production and its suppliers.

Established in 1872, Adnams is best-known as a brewer of cask ales with a strong sustainability ethos.

Adnams also owns and runs three coastal hotels, makes its own hand-crafted spirits, imports wines for its stores and runs an online shop.

Built in a former gravel pit in Reydon, just outside Southwold, Suffolk, this was hailed as one of Britain’s greenest warehouses and the first industrial building in the UK to be built using entirely sustainable material, boasting many architectural and technological wonders.

These include 60m glulam wood beams from sustainable sources, solar thermal water heaters, walls made from local hemp and lime bricks and a 5,000m2 green/sedum roof.

This ensures the building is very insulated and no artificial cooling or heating is needed to maintain a cool 13-16°C inside.

Photovoltaic cells in the roof also provide 80% of the hot water required.

Installed when the building was built in 2006, the Thorn lighting at the centre of the 4,400m2 facility was a mix of inefficient fluorescent, metal halide and compact fluorescent lamps. The objectives for the new lighting were to therefore reduce the number of fittings and

52 October/November 2016

Thorn has met the stringent objectives of Adnams Brewery by reducing the number of fittings and associated energy consumption and switching to LED associated energy consumption by switching to LED. In addition to supplying the original lighting scheme for the distribution centre, Thorn had successfully refurbished some of Adnam’s offices with LED lighting, as well as undertaking maintenance projects to replace fittings when failures occurred.

Based on the quality of Thorn’s products and the

expertise of its service, Adnams approached Thorn to renew the lighting, while helping the brewer to achieve its goal of reducing its carbon footprint every year, largely through a reduction in energy consumption.

The refurbished lighting also had to provide a better lit environment for employees.

Thorn has met the stringent objectives of Adnams Brewery by reducing the number of fittings and associated energy consumption and switching to LED. In the distribution centre’s key industrial areas, including the main warehouse, cask bay and goods in area, Thorn’s HiPak Pro LED high bay luminaires have been installed. High efficiency (135Lm/W), HiPak Pro LED makes particularly significant energy savings when compared with the previous lamps while providing a

better quality of light than the previous luminaires.

Installing LED lamps has also reduced the heat emitted from the lights, lowering the temperature and making it easier to maintain the 1316°C temperature inside.

Thorn’s IP65 rated dust and moisture resistant Aquaforce ll LED has been fitted in several other industrial areas including the loading bay, caged and parcel areas.

Other refurbishment areas include the toilets with Cetus LED. As a recessed LED downlight sealed to IP44, Cetus LED is designed for one for one replacements of traditional compact fluorescent downlights.

The next phase will see the refurbishment of the offices, which will include the introduction of lighting controls to maximise energy savings.

Benedict Orchard, environmental sustainability manager, says: “Having fully researched our site beforehand to understand which solutions would be best for us, Thorn successfully met our objectives, including to reduce the number of light fittings and energy consumption within the building. Minimal disruption occurred and our staff are very happy with the products.

“So far we have data suggesting reduced energy consumption is on par with calculations prior to project completion. The light levels are all significantly better and the colour is very clean and great for industrial operations.

I am also impressed with how clean and smart the lighting and light levels look.” te thornlighting.co.uk

theenergyst.com

LIGHTING

Plug and play CP Electronics has launched a modular wiring solution featuring a complete pluggable system, allowing for the configuration of any lighting installation in minimal time

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arket forces within the construction industry require installers to become increasingly competitive in terms of cost and time. In response to this demand, CP Electronics has delivered a solution which is simple to install, as it uses just four components: tee modules, extender leads, luminare leads and connectors.

Using an industry standard GST connection, the solution offers full compatibility with all luminaires with connectors of this type, as well as CP Electronics’ existing range of lighting control module- (LCM) based systems including Vitesse Modular, Vitesse Plus and RAPID. As a result, the specification and installation processes are both vastly simplified

and shortened, saving considerable time and cost.

The VITM6 tee module is a 6 pole component used to provide a simple interlinking connection within fixed wiring installations. Tee modules can be connected to luminaires via a simple interlocking male to female connector system.

These are then joined together

using an interlink which can be adjusted to the correct distance between the modules.

Housed in a robust flame-retardant casing, the module features fixing tabs that allow suspension within the ceiling void using cable ties, also making it suitable for mounting on cable trays and baskets.

Available in a variety of configurations to suit virtually every requirement, modules can be easily connected using standard extender lead cables, allowing for the option of easy connection of switching luminaires, dimmable luminaires and emergency luminaires.

Rob Crookes, systems product manager at CP Electronics, explained: “With increased pressures to deliver projects both on time and within budget, the availability of ‘plug and play’ solutions goes some way to addressing the concerns of installers and specifiers.

Our new range of modular wiring products are ready to use and available from stock, saving valuable time and money on installation, in turn helping to enhance overall profitability.” te cpelectronics.uk.com

Megaman launches new Luster-LED range

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egaman UK has announced the launch of its Luster-LED High bay LED luminaires.

Designed with an aluminium housing, the Megaman Luster-LED range has an integrated LED and builtin driver and offers instant, high-quality light for indoor or outdoor applications.

Available in 65W, 110W and 210W versions, it is the ideal replacement for 150W, 200W and 400W metal halide lamps, and offers huge reductions in power consumption.

IP65 rated, the Luster-

54 October/November 2016

LED range is ideal for use in warehouses, manufacturing bays and exhibitions hall applications. All parts of the luminaire are interchangeable, enabling the LED module and heat sink to be coupled with either an aluminium or polycarbonate reflector and optional aluminium or polycarbonate cover.

In addition, the 210W version has a 21000 lumen output, long service life of 50,000 hours and can be used in ambient temperatures up to 50°C, making it ideal for applications such as roof tops. te megamanuk.com

theenergyst.com

ENERGY STORAGE

Solar storage system goes live Moixa launches solar plus storage offer for housing associations, councils and homeowners

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oixa has announced a £4,995 solarplus-storage package that will allow customers to benefit from the smart power revolution.

The package, targeted at homeowners, housing associations and other landlords, bundles a 2kWh Moixa smart battery with a 2kW, eight-panel solar photovoltaic system.

Speaking at the Clean Energy Live exhibition in Birmingham, Moixa CEO Chris Wright said: “It will protect customers from rising electricity prices and allow them to benefit from the smart power revolution, accessing smart tariffs and making money by supporting the development of a reliable, cost-effective, low-carbon electricity system. We also hope it will provide a boost to the solar installation market, which has been hit by cuts to feed-in-tariffs.”

He claims customers will typically benefit by about £350 a year in electricity savings from their solar panels and battery and from feed-in-tariff payments. They will also receive £50 annual payments for making their battery capacity available through Moixa’s GridShare aggregation platform to provide services that make the electricity grid more efficient, greener and cheaper to run, such as balancing demand and reducing the need for backup power from coal, oil and gas.

Customer savings are expected to grow over time.

Electricity prices are forecast to rise 17% by 2020, and the introduction of smart tariffs from 2017 will allow customers with batteries to buy power from the grid

56 October/November 2016

said: “Solar plus storage has huge potential to decarbonise our electricity system, allowing homes to provide back-up capacity that enables the grid to use more clean renewable power and reducing the need for coal, diesel and gas to meet peak demand.”

Storage and demand flexibility are two of three key innovations in a “smart power revolution” which could The typical yearly save consumers Action electricity saving up to £8bn a charity, to year by 2030, demonstrate according to the how storage National Infrastructure and solar PV, Commission’s Smart Power coupled with other report, which refers to Moixa initiatives, can help lower and its 250 home battery trial bills and tackle poverty. for the former Department of Councillor Meric Apak, Energy and Climate Change.

Cabinet member for The Moixa Smart Battery sustainability and environment is a compact (50cm x 30cm x at Camden, said: “Solar plus 20cm), cost-effective, wallstorage is of huge interest mounted unit and is easily to Camden Council. Fuel installed. It is an all-in-one poverty is a very serious issue Lithium Ion Phosphate battery blighting people of all ages system, requiring no additional and circumstances nationwide equipment, and AC-coupled, and storing solar energy can so it can take advantage of be one of the methods to smart tariffs by importing offer our tenants significant electricity from the grid when savings to help reduce this it is cheap. USB ports allow burden. This technique customers to charge mobile helps meet our Green Action phones and other devices for Change environmental and can support efficient targets by actively reducing LED lighting, providing the carbon footprint across power even during outages. our housing stock.”

It has a 20-year lifespan Jeremy Leggett, a Moixa and comes with an extendable investor who is founding 10-year guarantee. te director of SolarCentury, which moixa.com is the UK’s largest installer,

The eight-panel solar photovoltaic system comes bundled with a 2kWh Moixa smart battery that can be wall-mounted

£350

when it is cheap for use at peak times. Moixa also expects to increase payments to customers as the market for grid services develops.

Moixa has just installed smart batteries in social housing in the London boroughs of Camden and Islington in one of four trials, funded by the National Energy

Solar plus storage has huge potential to decarbonise our electricity system, allowing homes to provide back-up capacity that enables the grid to use more clean renewable power and reducing the need for coal, diesel and gas to meet peak demand theenergyst.com

ENERGY MANAGEMENT

The power of good Choosing an energy monitoring device that has the ability to measure power factor is important in gaining an accurate overall picture of energy usage and planning efficiency measures

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he ability to monitor power factor (PF) as part of overall energy use can be extremely useful in planning and implementing energysaving initiatives in high consumption facilities.

Power factor is a measurement of how efficiently electrical power is consumed. In high consumption premises, the operation of plant and equipment such as motors, compressors, welding sets and even fluorescent lighting can introduce varying levels of electrical inefficiencies in the form of additional currents called â&#x20AC;&#x2DC;inductive reactive currentsâ&#x20AC;&#x2122; into a siteâ&#x20AC;&#x2122;s electrical supply.

The power dissipated in a load is the product of the voltage and current. If a load is purely resistive, the voltage and current are in phase and all the power can do useful work. If a load has a reactive component (ie has capacitance or inductance) the voltage and current are not in phase. The reactive load causes current to flow but it can do no useful work.

The relationship between resistive (real) power and reactive power can be described by the power factor or phase angle. A purely resistive load has a power factor of one and a phase angle of zero (ie there are no electrical inefficiencies).

A purely reactive load has a power factor of zero and a phase angle of 90.

The relationship between apparent power, real power and reactive power can be represented in a power triangle (see figure 1).

theenergyst.com

In a typical commercial or industrial site this inductive loading can cause it to be reduced to around 0.80 (ie 80% electrically efficient)

Most loads have a component of each: ideally in terms of consumption, electrical efficiency would be around 1.00 PF (100% electrically efficient). However, in a typical commercial or industrial site this inductive loading can cause it to be reduced to around 0.80 (ie 80% electrically efficient).

supply may be charged as kVA. In addition to saving energy and reducing costs, as the power factor of a system is improved, the release of electrical capacity means that the total current flow will be reduced. This permits additional loads to be added and served by an existing system.

The effect on electricity costs If a load has a low power factor, more current must be supplied by the utility company than is actually needed. Organisations with a poor power factor are likely to be charged a premium for power by the utility company.

Therefore organisations with a low PF may well be wasting both energy and money: when it falls below a set figure, electricity companies will have to supply extra (kVA) to make up for the loss caused by poor power factor. They will often apply an additional charge to the KW being consumed, or the whole

Choosing the correct energy data logger The ability to measure PF in a facility will indicate how effectively electrical power is being used. This will enable corrective measures to be introduced that can target the inductive reactive currents, counteract the inductive element of the load and increase electrical efficiency to nearer the ideal target of 1.00 power factor. Power factors can be corrected/improved by the installation of newer equipment including dedicated integrated circuits, or installing specialist equipment.

To present an accurate measurement of power usage, it is important to choose an energy logger that measures both voltage and current usage and correlates the timing between the two to measure the power factor.

The Tinytag Energy Data Logger is a useful tool for identifying and evaluating energy saving measures. Costeffective, non-invasive and easy to use, it monitors single and three-phase power usage, and power factor, and can be used for spot checks or left to record for longer periods to help build up energy profiles throughout an organisation. te tinytag.info

Apparent power (S) measured in VA kVA

S

Q

Reactive power (Q) measured in VAR kVAR

Phase angle

Real or true power (P) measured in Watts

W kW

Figure 1: A power triangle shows the relationship between apparent power, real power and reactive power

October/November 2016

57

WATER MANAGEMENT

Newcomer makes a splash Tim McManan-Smith talks to Water Plus director Tony McHardy about the new water retailers plans to provide solutions to businesses and organisations across the UK

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ater Plus, a new player in water retail, has been licensed to provide water supply and wastewater removal retail services to businesses. It will initially supply about 400,000 customers, across all sectors, from major users and multi-sites, to small, medium and micro businesses.

The company was created following a joint venture between Severn Trent Select and United Utilities Water Sales. Water Plus corporate director Tom McHardy says both United Utilities and Severn Trent are passionate about competition and the opening up of the market.

“There is a vast resource of expertise in both businesses in retail and water,” he says.

“We wanted to create something refreshingly different, not a one size fits all model. It will be a personalised experience even for SMEs.” Among the advantages the new company says it can offer

We wanted to create something refreshingly different, not a one size fits all model. It will be a personalised experience even for SMEs

are a single bill for multiple sites as well as developing a water management strategy for the customer, water efficiency advice and implementation and process analysis for industrial customers.

Aside from bill consolidation for multisite customers, water efficiency will be a key focus for Water Plus.

The company starts with an audit of a business’ water network. Then a review of the customer’s tariff and bills assesses whether the charging structure is cost-efficient.

Water Plus’s technicians then look at meter sizing and consumption profiling to identify opportunities for downsizing, together with the use of sub-metering to monitor and report on water use.

For larger sites there is also production and operational water usage. This involves water-saving initiatives including rain water harvesting, wastewater treatment and sustainable drainage solutions.

Following the audit, a

report detailing the areas where improvements can be made is produced with a full cost benefit analysis. To put it into context, there is also benchmarking information so the customer can compare its usage with other businesses.

It is McHardy’s belief that the market will move quickly in England.

“There will be big opportunities and we have the scale. It is exciting to do something different in the market. Businesses will pay a reasonable amount for a quality service if it saves them in the long run.

If it was all about price we would be driving around in Dacia Sanderos,” he says.

“Now is the time for organisations to start planning in order to maximise the potential benefits of competition. The savings and service benefits of this deal demonstrate what other companies can get out of switching.” te water-plus.co.uk

David Lloyd chooses Water Plus as single supplier David Lloyd Leisure has named Water Plus as the preferred water supplier for its 84-site estate, with just over six months until the introduction of full competition in the English non-domestic water market.

Announced at this year’s Water Event in Birmingham, the deal is claimed to be the largest UK-wide switch to date. Water Plus will offer the health clubs and gyms one point of contact for billing and a consolidated bill for wastewater, surface water drainage and trade effluent.

The water company will also deliver a water efficiency plan for David Lloyd, including the installation of automated

58 October/November 2016

meter readers (AMRs) and leak detection across its sites.

Prior to signing up with Water Plus, each of David Lloyd’s facilities was serviced by its local water company, which meant the business had to deal with 15 different suppliers for billing and specific site issues. Of its 84 locations, 70 are above the present water-use threshold for switching.

Currently, businesses in England using more than 5,000m3 of water per year are able to buy water services from a number of licensed providers, in addition to their regional water company. But from 1 April, 2017 all English organisations will be able

to choose their water and wastewater supplier, and follow the example of David Lloyd, to maximise the potential benefits.

Kish Sharma, utilities and property finance manager at David Lloyd, said: “David Lloyd is one of the first companies to switch supplier ahead of the water market opening up to competition next year, setting a precedent for others to follow. The freedom to choose a single water company has created a range of benefits for our business, including cost and efficiency savings, as well as consolidated billing across most of the estate. We’re excited to be working with Water Plus.”

theenergyst.com

Take the right steps now to stay afloat in the open market

An open opportunity The competitive water market opens in just five months’ time and the benefits available for businesses will be considerable, from saving money on water bills to a consolidated supply and better services, says SES Business Water managing director Giuseppe Di Vita

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avigating the new water market can seem daunting and there are some common concerns that businesses have, from deciding whether to get involved straight away or wait, and the problems that could arise should a business’ water data be inaccurate.

However, there are steps that businesses can take now to remove the risk of an open water market and be in the right position to benefit from competition from day one.

Ensuring data accuracy The market is on track for deregulation, meaning the likelihood of problems occurring from delays and technical issues within the water industry is so far limited.

Behind the scenes, the new shadow market is open and

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suppliers have acquired licences and are lined up to compete and billing data has been transferred to the central market operating system (CMOS) to make it easy for accounts in England and Wales to be switched. The most likely risk for businesses is that the data held in the CMOS records for your organisation may be inaccurate, from unbilled sites to incorrect portfolio data.

You would not conduct a tender for your energy supply without an accurate view of your portfolio, and the same applies for water. Taking steps to address your data now will reduce any problems in the future when it comes to switching supplies – from the unexpected bill shock of new invoices for previously unbilled sites to the headache of resolving incorrect invoices.

Consolidating your water

You wouldn’t conduct a tender for your energy supply without an accurate view of your portfolio, and the same applies for water

data or site/property list and comparing it to that held on the CMOS database will validate your records and enable you to rectify any inaccuracies. If this seems like an administrative burden, it doesn’t have to be.

Working with a water expert to validate your records will not only address data issues but it will also provide you with an accurate view of your portfolio, placing you on the first step towards a truly effective water management strategy that will help to reduce consumption and cost.

Mitigating procurement risk When the energy markets opened up, some businesses were stung by getting locked into contracts that proved to be poor value as prices fell in the first year of trading.

Unsurprisingly, some may be reticent to enter the

October/November 2016

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WATER MANAGEMENT water market immediately, preferring instead to wait and watch. However, energy procurement and water procurement are very different.

Power and gas are traded commodities, with prices fluctuating daily and wholesale markets impacted by a swathe of external factors, from weather to LNG supply in Asia. Risk management in energy procurement is about hedging correctly, optimising trades and keeping a close eye on profiles to avoid costly volume tolerance breaches.

Water procurement is quite the opposite: rather than a traded commodity, wholesale prices in England are controlled

by Ofwat price reviews, establishing a framework of pricing in four-year increments.

Prices between 2016 and 2020 are largely index-linked, with annual changes. This means that any price saving available can be accessed from day one of the market opening.

In Scotland, organisations have saved upwards of 30% on their water bills and while the English market is structured differently, there are still significant direct and indirect savings to be made.

Risk management in water procurement is about securing a

competitive price for your water contract and finding a product that best meets your needs.

This is where innovation comes in and a competitive market enables: at SES Business Water, for example, we have ‘Wholesale Tracker Plus, a product that tracks the annual wholesale rate – the lowest cost allowed by the Water Act – with a clear management fee to reflect the services required, with a 28 day notice penalty free cancellation period rather than a locked in contract. Price matters, but having confidence that the price you are paying is fair is equally important.

Deregulation offers a new start for SES Business Water and a chance to take a more transparent approach to pricing.

Search for savings Securing a better price for your water and wastewater supply is the best way to reduce water costs from April next year. Once data has been prepared and verified, tenders can get under way before the market officially opens to make sure your business is best positioned to benefit.

For organisations with a multi-site portfolio across different regions, the chance to bring sites under one

A renewed focus on water and the data to spot and act on opportunities means additional savings can be unlocked

Most organisations have a mature energy management strategy, many having moved on from the low hanging fruit of simple efficiency measures that can deliver significant savings, but water management has often lagged behind. A renewed focus on water and the data to spot and act on opportunities means additional savings can be unlocked.

supplier will also support better data management and cost savings. From negating the need for multiple invoices to process and multiple suppliers to manage and pay, to creating a single source of data to identify anomalies and spot opportunities to reduce consumption, there are multiple reasons to consolidate supply.

The changes in the water market will mean businesses enjoy wider benefits. Aggregated water data will give organisations an unprecedented view of usage across their organisation, providing them with the ability to monitor, measure and minimise water consumption and in turn cost.

Combined with AMR or loggers, businesses can also avoid estimated bills with monthly accurate consumption records.

Start today The only risks from the open water market are those that can be managed easily. Take the time to source and collate your water data, working with a water expert to check and validate it against the central CMOS database before the market opens. Take into account that a competitive market means better prices, better services, and a chance to create and deliver a water management strategy, so ensure your tenders reflect these needs and provide you with the tools and services you need to support these new objectives.

Taking action now to prepare for the open market will mean your organisation is best placed to benefit from the savings on offer from an invigorated market. te sesbusinesswater.co.uk

Three sixty enters business water market

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new player has entered the nonhousehold water market, Three Sixty.

Born out of Yorkshire Water, and part of the Kelda Group, Three Sixty has been created to meet the specific needs of business customers nationwide and will offer a fresh approach to the water market ahead of deregulation in England in April 2017.

Robert Marrill, former director of Kelda Group’s non-regulated business Kelda Water Services, will lead the Three Sixty team and

60 October/November 2016

Marrill: “We know what matters most to our customers”

the new offer for business customers throughout England and Scotland.

Marrill said: “In launching this new company, we know that what matters most to our customers is the uninterrupted, day-to-day running of their own businesses and we are passionate about helping them achieve this.

“In developing Three Sixty, we have learnt from all the attributes that made our sister company Yorkshire Water and our national water retail company Kelda Water Services Retail so successful

and have applied them to this new company, putting customer service at the heart of everything we do.

“Three Sixty will be easy and straightforward to work with. We will provide real value for our business customers and build on the key strengths, expertise and decades of experience we have in the Three Sixty team.”

Three Sixty will be working with businesses nationally to help them save money, time, become more responsible, sustainable and reduce risk. te threesixty.company

theenergyst.com

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PRODUCTS Leisure centre cuts air handling and pool energy costs by 20% with ABB drives A Kent-based leisure centre operated on behalf of Ashford Borough Council is achieving up to 20% energy savings following the installation of ABB variable-speed drives (VSDs).

The air handling unit (AHU) at Tenterden Leisure Centre, operated by Tenterden Leisure Trust, has been retro-fitted with two ABB HVAC drives and low voltage motors, one each on the air inlet and exhaust fan, together with three ABB industrial drives for the swimming pool recirculation pumps.

MKE replaced the motors with two ABB standard induction motors, each driven by a 22 kW ABB HVAC drive.

Craig King, site manager for Tenterden Leisure Trust, said: “Now, the motors are no longer ‘stop and go’. The VSDs tell the motors to start, running them at 40 Hz

for the high speed during the day and 20-15 Hz for the low speed at night.”

MKE also installed three 12 kW ABB drives on the pool pump system, removing the old star/delta starting contractors and supplying new power cable. The VSDs are protected to IP54 as they are sited in a dusty area and are also subject to a high moisture environment.

“We have three pool pumps and previously ran two of them on duty, one off. With the new VSDs, we can run all three at a reduced speed saving a quarter of the electrical consumption,” said King.

Ashford Borough Council also funded the replacement of a basic water flowspeed meter with a digital unit in order that the pool turnover rates would not be affected and could be accurately measured when reducing the pump speed.

MKE estimated an 18 months payback but Tenterden Leisure Trust has achieved that in just over a year. abb.com

Partnership to simplify energy management

Greater pixel power for the same price Pixel numbers are important in thermal imaging. The more there are, the clearer the thermal picture and the easier the diagnosis. Until the end of the year, Flir Systems is offering its customers higher image resolution for the same price in a promotion to demonstrate pixel power. That means it is now possible to buy a Flir E6 for the price of a Flir E5 and a Flir E5 for the price of a Flir E4.

The Flir Ex-Series point-andshoot thermal imaging cameras are affordable replacements for a spot pyrometer that provide a complete radiometric picture of the thermal problem. All models provide thermal and visual imaging and complement both with Flir’s unique MSX image enhancement capability.

The promotion provides savings across the

62 October/November 2016

range of up to £839.

For those seeking the best deal on more sophisticated cameras, the Flir ExxSeries range introduces interchangeable lenses that enable the camera to be used for an even wider variety of tasks. Manual focus also allows the user to dial in the sharpest clarity and finest accuracy. Four models are in this Exx-Series offer – the E50 and E60, and their building science counterparts the E50(bx) and E60(bx).

Until 31 December, 2016 customers can take advantage of savings up to £1,908 on these Flir Exx cameras. All camera are covered by Flir’s leading warranty of two years on the product itself and 10 years on the detector. flir.co.uk

Panasonic and Schneider Electric have announced an integrated HVAC equipment and building management solution for high levels of HVAC control and energy efficiency in commercial buildings.

Both companies have developed a new interface wireless solution which enables direct serial communication between Schneider Electric’s building management system and room controllers with Panasonic’s variable refrigerant flow (VRF)-based HVAC systems via the ZigBee wireless communication standard.

This integration allows building owners and managers to view all of their core building systems including HVAC equipment, lighting,

security, power and electrical distribution anytime and anywhere via a single interface and delivers actionable insights to reduce energy consumption and drive savings.

The joint Panasonic/ Schneider Electric solution can be installed wirelessly – which preserves existing infrastructure and is ideal for retrofits of older buildings – or it can be wired. The solution simplifies system configurations for extensive VRF systems – or it can be installed as a part of a stand alone system.

In addition, facility teams have access to comprehensive energy reports and dashboards schneider-electric.com aircon.panasonic.com

The global partnership was announced at Chillventa 2016

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Product & Services Directory Contact Harry Powell Tel 020 3751 7863 Mob 07557 109476 ENERGY METERING & MONITORING SYSTEMS

CALIBRATION SERVICES

RES completes its first UK energy storage project RES (Renewable Energy Systems) has successfully completed its first UKbased industrial-scale battery storage facility at a 1.5MW solar park south of Glastonbury in Somerset.

RES has delivered the battery energy storage system (BESS) under an Engineering, Procurement and Construction (EPC) contract for Western Power Distribution (WPD) as part of a project to explore the provision of ancillary services to a distribution network operator from an embedded battery energy storage system.

The 310kVA/668kWh battery storage system RES has delivered for WPD, at a British Solar Renewables (BSR) solar park, is one of the first such projects to be built under a fully wrapped EPC contract in Europe. The combined solar-storage project

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is connected to WPD’s South West 11kV network, and the BESS will be operated using RESolve, RES’ storage control and dispatch system that will provide 24/7 management of the battery’s operation.

Tim French, RES’ head of projects for new technologies, said: “We recognise the significant potential energy storage brings through increasing the efficiency and cost-effectiveness of grid operations without the need for public or government subsidy. res-group.com

Low/high bays + plug-and-play control sensor Net LED Lighting has announced it is the sole distributor of the LG LED Essentials Low/High Bay range to UK electrical wholesalers.

These products expand the range of high bays available through NET LED and promise to make energy savings simple for businesses with a simple plug-andplay control sensor.

Available at two power levels, 120W and 230W, the LG LED Essentials Low/ High Bays output at a highly efficient 100lm/W – a fraction of the energy draw of Metal Halide/SON equivalents.

There is potential for additional energy savings via a dedicated motion step dimming control sensor.

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The PIR motion sensor, available as a separate plug-and-play unit, ensures luminaires are illuminated only when needed. By incorporating sensors, LG Low/High Bays output at 100% at the detection of movement within a 13m range. After a period of time, luminaires dim to a 30% security lighting level, or off, depending on the needs of the application. These variables are adjustable via simple switch and dial controls on the reverse of the motion sensor unit.

LG LED Essentials Low/ High Bays operate within a wide temperature range, have a useful life expectancy of 50,000 hours and are covered by a five-year extended warranty. netled.co.uk

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65

Q&A

Jeremy Nicholson The Energy Intensive Users Group director on energy targets, the 1920s and playing the piano

Who would you least like to share a lift with? Why? I decline to answer on the grounds of cowardice (ie wishing to remain employed).

You’re God for the day. What’s the first thing that you do?

I’d abolish Decc, but the prime minister beat me to it – so I’ll just have to abolish renewable targets instead.

If you could travel back in time to a period in history, what would it be and why?

The 1920s – mucking around in biplanes and motoring on congestion-free roads – ideal.

Who or what are you enjoying listening to?

Recently it’s been a peculiar mixture of Mendelssohn, Tchaikovsky and Dvorak – supplemented by a mildly irritating jingle from an advert that I can’t get out of my head.

What unsolved mystery would you like the answers to?

Why do so many otherwise rational people convince themselves that mankind is doomed when the evidence suggests otherwise?

What would you take to a desert island and why?

Piano, preferably a Bechstein Model B – no neighbours to disturb, what a joy.

What’s your favourite film or book and why?

Rebecca – Hitchock’s 1940 version – creepy

66 October/November 2016

I’d abolish Decc, but the prime minister beat me to it – so I’ll just have to abolish renewable targets instead

Perfectly creepy…

Hitchcock’s Rebecca

housekeeper, mysterious Cornish cliff top house and endearingly elementary special effects – just perfect.

Singing would be fun – what could be better than being rewarded for doing something inherently enjoyable?

If you could perpetuate a myth about yourself, what would it be?

Solvency.

What is the best piece of advice you’ve ever been given?

You can’t talk and listen at the same time.

What would your super power be and why?

An ability to conceal boredom regardless of the circumstances. Imagine being able to endure the most tedious of meetings with zero risk of missing something incredibly dull but vitally important – the power would be immense.

What would you do with a million pounds?

Use it to transform my hitherto imaginary villa in Sicily into a real one.

What’s your greatest extravagance?

Rooftop dinner at the Eden hotel restaurant in Rome – well beyond my means, but fun.

If you were blessed with any talent, what would your dream job be and why?

What irritates you the most in life?

False accusations – closely followed by sanctimonious hypocrisy.

What should energy managers be doing to help themselves in the current climate?

Get the best deal consistent with your appetite for risk – don’t be afraid to seek genuinely independent advice – and use energy as productively as possible.

What’s the best thing – work wise – that you did recently?

Advising a manufacturer on obtaining compensation and restructuring to reduce their internationally uncompetitive electricity costs, so they can carry on operating in this country – and keep their workers in jobs.

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