The Energyst by The Energyst

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All change: CRC to exit, Esos to the fore and subsidies for energy efficiency

October / November 2015

Cold comfort: Grid says margins manageable as firms brace for price spikes

Lighter load: Getting lighting budgets signed off and halving payback times

The new name for Water, Energy & Environment

Energy cost reduction delivered. See page 14

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INSIDE THIS ISSUE

30 EU Eco Design Directive

Full refund?

Intensive users have been promised a full refund of energy policy costs by David Cameron. But who will pick up the tab?

Could the end for energy guzzling transformers mark the dawn of a new industrial revolution?

20 Demand Side Response

United Utilities has made a big commitment to demand response but says more money is needed to bring in small units

Water Management

Subsidies for energy efficiency?

Danger lurks below the surface for businesses that are unprepared for competition in the water retail markets

Treasury has mooted subsidies for energy efficiency and plans to axe the CRC

energyefficientlighting

“Facilities managers should view it as an ideal opportunity to upgrade to a more energy efficient condensing boiler”

Lighting – Special Report

Policy & Legislation

The Energy related Products Directive (ErP) has come into effect. It has some major implications when it comes to boiler replacement

theenergyst.com

All change: CRC to exit, Esos to the fore and subsidies for energy efficiency

Veolia calls for a corporate carbon tax and EU border carbon taxes for imports

News & Comment

Commercial Heating

Policy & Legislation

It’s not just about the lights, but the strategy, finance and payback metrics. Some firms have got it all wrong, say those in the know

October / November 2015

Cold comfort: Grid says margins manageable as firms brace for price spikes

Lighter load: Getting lighting budgets signed off and halving payback times

The new name for Water, Energy & Environment

Energy cost reduction delivered. See page 14

14 Cover Story

Energy cost reduction is easy, says Bid Energy

Eco Design Directive

Compressed Air

Building Controls

Water Management

Gas & Electricity

Commercial Heating

Q&A

Renewable Energy

Lighting – Special Report

To subscribe please visit: theenergyst.com/subscribe special report theenergyst.com

October/November 2015

COMMENT

An idea that might work All the recent focus has been on the potential of scrapping certain energy taxes and simplifying them, yet it seems many have missed what might be a very interesting detail. George Osborne announced he is willing to incentivise energy efficiency; this is something the demand reduction industry has been seeking for many years. It is welcome news that the government is planning to tackle the duplication, overlapping carbon counting and circuitous thinking in energy efficiency and demand reduction policy. But an actual incentive for businesses do energy efficiency, that’s novel. Many have highlighted the problem with Esos is that once the audit is conducted and signed off by a director, nobody is actually required to do anything, that is, until they are required to conduct another one. The government has mooted that it may subsidise

Incentivising energy efficiency has worked for Germany. If the Treasury can follow through with its latest idea, it could deliver large scale UK uptake. energy efficiency measures within the Esos framework. If you were to innocently look at tables of countries that have achieved ISO 50001 you would see the leading the table is Germany. This might lead you to conclude but German businesses are more interested in optimising their building’s performance and being energy-efficient than firms from other countries. However, it actually comes down to the fact that their government gives them a tax break if they achieve ISO 50001. This is the sort of thing that achieves a large take-up of energy efficiency in a meaningful and systematic way across the board. Yet the UK has continued to extol the virtues of energy efficiency while incentivising virtually everything else.

Editor Tim McManan-Smith tim@energystmedia.com t: 020 3714 4450 m: 07818 545308

Contributing editor Brendan Coyne brendan@energystmedia.com t: 020 3771 1267 m: 07557 109724

Sales director Steve Swaine steve@energystmedia.com t: 020 3714 4451 m: 07818 574300

Sales manager Harry Powell harry@energystmedia.com t: 020 3751 7863 m: 07557 109476

Circulation enquiries circulation@energystmedia.com

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

4 October/November 2015

As part of the consultation into simplifying energy taxation the government has rightly raised the issue of incentivising demand reduction and lifting the financial burden of implementing energy-efficient projects. Options included in this consultation include feed-in tariff-style subsidies, supplier obligations and competitive-fund allocation. It was also suggested that the government could match-fund investments in energy efficiency and low carbon measures and that there could be a link to an audit such as Esos whereby businesses could claim an incentive to cover the cost of implementing actions highlighted by the reports. The Energyst’s Financing Energy Efficiency report highlighted that many energy managers have trouble getting budgets for measures with longer than a two year payback period. Indeed, recently I was on a panel at the Esta summit where Clare Topping, energy and sustainability manager, Northampton General Hospital NHS Trust, argued that the public sector is better placed than the private sector when implementing energy efficiency projects. This was due to the fact that sign-off was happily given to projects with five-year paybacks. Private firms must be more forward thinking and less worried about the next 12 months. Unless, of course, they don’t believe that they will be here after that time.

Energyst Media Ltd, PO BOX 420, Reigate, Surrey RH2 2DU Registered in England & Wales – 8667229 Registered at Stationers Hall – ISSN 0964 8321 Printed by Warners (Midlands) plc No part of this publication may be reproduced without the written permission of the publishers. The opinions expressed in this publication are not necessarily those of the publishers. The Energyst is a controlled circulation magazine available to selected professionals interested in energy, who fall within the publishers terms of control. For those outside of these terms, annual subscriptions is £60 including postage in the UK. For all subscriptions outside the UK the annual subscription is £120 including postage.

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Energy Procurement Integrated Energy Services Revenue Recovery

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NEWS & COMMENT

Government hints at scrapping CRC and giving subsidies for energy efficiency The government has hinted that the carbon reduction commitment scheme (CRC) is set to be scrapped as part of a cull of business energy taxes. HM Treasury is aims to streamline a raft of overlapping environmental taxes and policies. If successfully implemented, business will welcome the move, seen by many as long overdue. George Osborne announced plans to reduce the so called “alphabet soup” of environmental policies and taxes in July. The government is currently seeking views from businesses on which policies to ditch and how to construct

Increasing energy costs have done more for energy efficiency advances than any other factor

a clearer landscape that incentivises energy efficiency. The consultation notes that current policies can lead to businesses investing in renewables over energy efficiency. Treasury wants to reverse that and the consultation states that it may

subsidise energy efficiency measures “subject to strict value for money criteria”. Detail of the design of such incentives will be published pending the outcome of the consultation, but the document moots options including Feed-in Tariffs (FITs) for

More time for Esos compliance The Environment Agency has effectively extended the deadline for Esos submissions by confirming that firms are unlikely to face punitive action provided they have complied by 29 January. It has also confirmed that only the most serious cases will be face civil penalties. Esos requires all firms with at least 250 employees or a turnover of £42.5m and a balance sheet of £36.5m to complete an energy audit, which must be signed off by a director. Firms that fail to do so could theoretically face heavy fines. Some 14,000 firms are captured by the scheme but a month before the December deadline only around 600 companies had notified the Environment Agency of compliance. Organisations that provide assessors have long warned that the vast majority of companies will miss the boat. Legally the deadline remains 5 December and firms must complete an Esos audit and notify the Agency by then or be in breach of the regulations. However, the amendment to the Esos guidance, updated 8 October, now says companies will “not usually” face fines if they notify the Agency of compliance by 29 January and stick to the original deadline for notification of

energy efficiency, as well as tax relief, competitive funding and supplier obligations. Earlier this year a government-commissioned review of the CRC scheme suggested it had broadly achieved its objectives. The research concluded that the scheme initially frustrated many firms with its complexity, design changes and costs, but ultimately achieved carbon savings in line with its impact assessment. However, it stated that increasing energy costs have done more for energy efficiency advances than any other factor. The Treasury consultation also hinted that the energy savings opportunity scheme (Esos) could become more central to energy efficiency policy. Treasury suggested it was open to conversations around incentivising measures recommended by Esos audits. See the consultation at: http://bit.ly/1LiP9vw

Drax to halt CCS investment, seeks support for fourth biomass unit Drax will not invest further into carbon capture and storage (CCS). The company will quit the White Rose project once the front-end engineering and development phase is completed next year. Drax, however, is seeking government support to convert a fourth coal-fired unit to biomass. The 4GW power station is the largest in Britain, and without further conversion to biomass, remains the UK’s

6 October/November 2015

single biggest emitter. The firm said its infrastructure remains available for CCS projects in the future, and the remaining partners in the project BOC and Alstom, say they will carry on. However, some have questioned whether the project, which is vying for some £900m in government funding, can carry on without the principal power plant operator’s continued investment.

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Power struggle: Infinis and Drax start judicial review over Osborne’s CCL exemption axe Infinis and Drax have initiated proceedings for a judicial review after the Treasury announced it would remove the exemption from the Climate Change Levy for renewable power. The announcement, made in George Osborne’s Budget, caused consternation among energy companies and third party intermediaries who had been given no warning of the proposal. Drax, the UK’s largest coal-fired plant, which is converting its generators to biomass, saw its value plunge by almost a quarter within two hours of the announcement being made in July. How the CCL exemption worked Businesses have to pay for using fossil-generated power under the Climate Change Levy. But if they

use renewable power, the charge is not added to their energy bill. The CCL came into force in 2001 to encourage energy efficiency, and with it the exemption, to encourage uptake of renewable electricity. It is essentially a carbon tax. Since 1 August, the exemption for renewable power has ceased to exist. It means renewable (or noncarbon emitting) power is

now subject to a tax designed to penalise carbon emissions. HMRC stated that scrapping the exemption will save £3.9bn by 2020. However, it said that the move was “not expected to significantly increase business energy bills” nor “impact on wholesale prices”. Legal warnings Third party intermediaries have disputed that statement. Two of the largest TPIs told

The Energyst that axing the exemption would add eight figures to business energy bills and warned that suppliers had been taking legal advice. Infinis and Drax have reacted most swiftly, issuing a joint statement: “Infinis Energy plc and Drax Group plc have initiated proceedings for a judicial review of the notice period given by HM Treasury when removing the exemption from the Climate Change Levy (CCL) for electricity generated from renewable sources. The basis of this review is that the exemption was removed without the application of an appropriate notice period, as the notice given was only 24 days. “The companies ask the court to consider a reasonable and proportionate notice period for withdrawal of such renewable support.”

Mission Critical Power launches United Utilities begins work on Energyst Media, publisher of The Energyst, has lauched a new magazine aimed at those operating critical infrastructure. Published bi-monthly, Mission Critical Power covers the challenges faced by alwayson, mission critical sites. Each issue tackles a key theme in some depth, alongside core coverage of energy and risk management. The magazine will also regularly focus on issues faced by data centre operators both in-house and colocated - which have some of the most complex and critical infrastructure requirements. The print magazine is complemented by online news, opinions and features at missioncriticalpower.uk in

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3MW floating solar plant

missioncriticalpower.uk

ISSUE 1: OCTOBER 2015

A bigger bang: Equinix predicts limitless consumer data growth

Less is Moore’s: Optimising is the only way to keep up

Balancing act: National Grid wants to pay you. Any takers?

United Utilities is to bolster its self-generation to the tune of 3MW as it begins work on a floating solar PV plant at Godley reservoir in Greater Manchester. The water firm will complete the installation ahead of steep cuts to solar subsidies.

The Hyde project will be the largest floating solar plant in Europe and is expected to deliver up to 2.7GWh of power per annum. United Utilities hopes the system will be commissioned and operational before Christmas.

addition to a regular enewsletter. For further information, a digital copy and to subscribe go to: missioncriticalpower. uk/subscribe

October/November 2015

NEWS & COMMENT

Ofgem touts ‘radical’ reform to speed demand response Ofgem boss Dermot Nolan has hinted at “radical” reform to speed the uptake of services such as demand response aggregation. At the Energy UK conference in October, Nolan reiterated complaints from start-ups and independents that the current market set up stifled innovation and favoured incumbent energy companies. Ofgem began consulting in February on how to better regulate an energy market moving away from centralisation. But resistance to change by incumbents arguably lies at the heart of most barriers to entry and innovation. Nolan said that Ofgem was acting to speed up industry rule changes and was “talking to the CMA about the potential for more radical institutional reform”.

Ofgem, he claimed, “will let companies innovate and provide new services which are in the interests of consumers and which will make the system work better”. The regulator would “intervene where necessary”, he said. Cometh the half hour One of the key elements to tackle is half-hourly settlement. Only around 100,000 of the largest organisations are halfhourly settled. The rest of the UK is settled against a typical profile with charges

smeared across all users. Ofgem had mandated half-hourly settlement for larger classes of customers under P272 with a hard deadline of April 2016. However, that stance crumbled earlier this year because suppliers said they were not ready to make costly changes, according to Tempus Energy boss Sara Bell. Tempus is both an energy supplier and aggregator of demand response services and Bell is part of the half hourly settlement expert group for smaller profiles.

National Grid plots superfast grid balancing service

Flexitricity: Demand response can’t be rushed

National Grid is planning a grid balancing service an order of magnitude faster than current operations. The system operator seeks expressions of interest from firms that can provide full frequency response in less than a second in return for payment. The fastest of current Frequency Response services require equipment to deliver full power output within ten seconds when power system frequency deviates from 50Hz. Under Enhanced Frequency Response, full power output will be necessary in under a second and delivery must be sustained for at least 9 seconds. The service is intended to stabilise the system prior to faults occurring. National Grid intends to award four year contracts for service provision via a tender and seeks expressions of interest from energy storage providers and other technology providers that can meet the parameters. As well as technical parameters, National Grid states that any proposed solution must be able to self-fund its development and must be fully operational by July 2017. National Grid intends to run the tender exercise in December. See www2.nationalgrid.com/Enhanced-FrequencyResponse.aspx for further detail.

National Grid has reiterated faith in its ability to keep the lights on over winter despite thin margins. The system operator’s winter outlook shows margins will be thin, at 1.2%. However, National Grid says it has procured sufficient reserve in terms of generating plant and demand side measures to take the working margin to 5.1%. It wants to scale demand response as a safeguard for the future. But that will take time. “Every participant has to go through their own appraisal of defensive engineering to ensure their participation is respectful of their core business - and not just

October/November 2015

Bell believes that the softening on P272 is a missed opportunity as half-hourly settlement is key to scaling demand response participation. “We didn’t cancel the April 2016 date because of customers,” she said. “We cancelled it because of pressure from the big six on Ofgem.” “It is hard for Ofgem to be courageous in that situation,” said Bell. “But half-hourly settlement is the most important thing. “At the moment, only halfhourly settled [companies] can do Triad avoidance or can reduce their distribution network charges by changing their consumption [patterns],” she added. “As soon as you force half-hourly settlement on the market, a demand aggregator can manage customers’ network costs and move them away from expensive [peak] periods. That is going to be a worthwhile service. “As soon as you do that you unlock the market.” respectful but subservient,” Flexitricity founder Dr Alastair Martin told The Energyst. The company manages more than 300MW of business assets that respond when called upon by National Grid. “That [appraisal] takes engineering knowledge and experience. This is not a sector where somebody can flip their business and quickly make a bunch of money,” said Martin. “That is not the sort of investment this industry can honestly attract.” Botched implementations will only damage market confidence, he warned. “Any site where it is not done right will remove itself from demand response.” Read a full interview with Flexitricity’s Dr Alastair Martin in the current issue of Mission Critical Power.

Sponsored column

GDF touts gas to grid earner GDF Suez is urging firms with anaerobic digesters to consider exporting biogas to National Grid rather than burning it for electricity. Injecting direct to grid is a far more efficient process, according to the company, and there is growing market for green gas. Combined with the Renewable Heat Incentive (RHI), the economics of exporting to grid can deliver more revenue than using the gas for self-generation, according to Dean McGinty, senior export account manager at GDF SUEZ Energy UK. McGinty says there are “lots of people interested in buying green gas”. As a result, the market is growing. In April 2014 there were three active UK export sites. By the turn of 2015 there were around 35. But there are hurdles to clear. Connections to the gas network are more

difficult to obtain than to the electricity network and the regulations more onerous. Firms then have to strike an agreement with one of the few shippers currently active in market. McGinty says GDF will negotiate individual agreements. “We haven’t really got a standard offer. The way we set it up is that we take all the balancing risk and just give exporters a price and manage it with an admin fee,” says McGinty. “But if someone wants a fixed price for three years and can demonstrate that the plant is reliable then there is no reason why we can’t do that. “Equally, if they have quite large volumes and they want to trade these volumes, it is something we would look to do.” The economics are such that any businesses with land “should consider building an AD plant themselves,” McGinty suggests.

The crema of the crop Costa’s energy & environment analyst Charlotte Calloway was presented with the inaugural Energy Managers of the Future Award at the Energy Event in September. Calloway manages all utility usage at the chain’s UK retail stores and ensures CRC and Esos compliance. She also developed and rolled out a national staff engagement project for energy efficiency and the behavioural change initiative caught judge’s attention.

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“I am delighted to have won,” said Calloway. “Promoting energy efficiency within the company is really important as is engaging with every stakeholder to ensure the scheme is a success. It is fantastic to be recognised for my work.” Calloway won an Energy Institute energy management course and a year’s Affiliate Membership of the Institute as reward for initiative and enterprise.

Are you ready for the Triad season? The clocks going back signals that the Triad season is about to start. SmartestEnergy key account manager Mark Cox explains why both buyers and generators should take notice Recent media coverage of the National Grid’s winter forecast for gas and electricity demand and supply has highlighted the challenges faced in ensuring the lights stay on in the coldest and darkest months of the year. To help manage spikes in demand, the Triad pricing system aims to encourage large energy users to reduce consumption, and in turn reduce demands on the grid. This can significantly lower their energy bills, and the growth of demand side response services also offers some exciting opportunities for those businesses with the flexibility to shift their demand away from peak periods. For embedded generators, payments are made under the system for any exported power during the three periods. So being aware of Triads and increasing generation if possible can be a lucrative source of additional revenue. On top of the financial benefits for consumers and generators, there are potential reputational advantages for both from active involvement in helping balance the grid and ensuring energy supplies are maintained. Although the timing of the Triad periods is not known until the March following the Triad season, there are some useful pointers from the past in

trying to predict when

Mondays are the most common day for a Triad, followed by Thursday, with 17:30 by far the most regular time

they might occur. For example, there have not been any Triad periods on a Saturday or Sunday since 2004/2005 with the only Friday Triad falling in December 2013. Mondays are the most common day for a Triad, followed by Thursday, with 17:30 by far the most regular time. There are some real benefits to be had for consumers and generators that take notice of Triads. If you can see the value in Triad management for your business, contact us to make sure you are signed up for our Triad alert service and visit www.smartestenergy.com/ triad to watch our webinar.

INSIGHT

Expected Paris commitments insufficient to stabilise climate Massachusetts Institute of Technology’s (MIT) ‘2015 Energy and Climate Outlook’ projects the likely impacts of current policies and pledges on global climate, emissions, and energy mix. Mark Dwortzan, joint program on the Science and Policy of Global Change, MIT suggests that the comittments pledged for Paris’ COP21 won’t stabilise the climate by the century’s end

his December’s international climate negotiations in Paris are expected to yield reductions in manmade greenhouse gas emissions, but unless deeper cuts follow, the global temperature is likely to rise 3.1-5.2°C above pre-industrial levels by 2100, according to a report released this week by the MIT Joint Program on the Science and Policy of Global Change. The projected temperature increase far exceeds the 2°C threshold identified by the United Nations Framework Convention on Climate Change as necessary to avoid the most serious impacts

10 October/November 2015

of climate change, from rising sea levels to more severe precipitation patterns to increased wildfires. New pledges from countries responsible for the largest global share of greenhouse gas emissions, announced in advance of the UN Climate Change Conference in Paris, promise to make barely a dent in the Earth’s warming trend, says MIT Joint Program co-director John Reilly, a coauthor of the report, “2015 Energy and Climate Outlook.” “Those pledges shave 0.2°C of warming if they’re maintained through 2100, compared with what we assessed would have been the

case by extending existing measures [due to expire in 2020] based on earlier international agreements in Copenhagen and Cancun,” Reilly observes. “We are making progress, but if 2°C stabilisation is our goal, it’s not nearly enough.” To determine the likely global impacts of extending existing measures beyond 2020 and implementing current pledges (known as intended national determined contributions, or INDCs) from the biggest emitters through the end of the century, “Outlook” researchers used the Joint Program’s Integrated Global Systems Model (IGSM),

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a linked set of computer models designed to simulate the global environmental changes that arise as a result of human causes. They also used the latest UN estimates of the world’s population, which is expected to reach 10.8 billion by 2100. The report highlights several key findings in the areas of global climate, emissions, and energy mix. By 2100, the “Outlook” projects — relative to preindustrial levels — increases in global mean surface temperature (3.1-5.2°C), global mean precipitation (7.1-11.4%), sea level (0.30 to 0.48 meters) and ocean acidity. Over the same period, greenhouse gas (GHG) emissions levels are expected to decline in developed countries but rise in some G20 nations and most developing countries, which should account for about 15% of global emissions by 2050. “As a result of China and some of the other middleincome emerging countries taking on actions, we see emissions stabilizing in developed and many G20 countries,” Reilly says. “The

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

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ENERGY & CLIMATE OUTLOOK PERSPECTIVES FROM 2015 AUTHORS DESIGN & EDITING

John Reilly • Sergey Paltsev • Erwan Monier • Henry Chen • Andrei Sokolov Jin Huang • Qudsia Ejaz • Jeffery Scott • Jennifer Morris • Adam Schlosser Jamie Bartholomay

•

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Mark Dwortzan

looming issue is what happens in the rest of the world, which includes many of the poorer countries. Their emissions remain a relatively small share of global emissions, but continue to grow. A challenge is how those countries achieve sustainable growth that doesn’t lead to ever greater GHG emissions.” The “Outlook” also projects that carbon dioxide emissions from fossil fuels (about 50% generated by the electricity and transportation sectors) will remain the largest source of GHGs, accounting for about 67% of total GHG emissions by 2100. Despite rapid growth in renewables and nuclear energy, fossil fuels will continue to account for about 75% of the global energy mix in 2050. “In this ‘Outlook’ we tried to represent the mix of policies and measures that countries will pursue to meet the INDCs they’ve laid out,” Reilly says, noting that most of these favor targets for wind and solar generation, vehicle fuel economy standards, and phasing out coal from the power sector. “That leads

to a different mix of energy technologies than if we had a broad carbon pricing scenario in these countries.” According to “Outlook” projections, by 2030, the planet will be within about 5 years of reaching a cumulative emissions level deemed by the Intergovernmental Panel on Climate Change as consistent with a 50% chance of exceeding the 2°C threshold (which it would likely pass by the 2050s). But based on significant recent progress in international climate negotiations resulting in major improvements in GHG emissions levels, the report’s authors remain optimistic that world leaders will follow the Paris talks with more ambitious climate policies. “The extension of the forecast beyond 2025 or 2030 is not a prediction of what is most likely,” they write. “Rather it is intended to indicate the need for continued effort, and a measure of the magnitude of effort needed.” te Reprinted with permission of MIT News. newsoffice.mit.edu

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October/November 2015

POLICY & LEGISLATION

Esos: Carry a bigger stick Esos uptake is sluggish and firms have been given extra time. Meanwhile, subsidies for energy efficiency are on the table. Incentives are welcome, writes Brendan Coyne, but enforcement should sting

he Environment Agency has effectively extended the deadline for Esos submissions by confirming that firms are unlikely to face punitive action provided they have complied by 29 January. It has also confirmed that only the most serious cases will face civil penalties. Legally the deadline remains 5 December and firms must complete an Esos audit and notify the Agency by then or be in breach of the regulations. However, the amendment to the Esos guidance, updated 8 October, now says companies will “not usually” face fines if they notify

the Agency of compliance by 29 January and stick to the original deadline for notification of late completion. The move is pragmatic. It is inevitable that thousands of businesses will miss the December deadline, given that only a few hundred had complied by October. Even so, assessors are unlikely to be able to manage the outstanding volume of audits within the remaining time frame, which makes stiff penalties unlikely. Energy Manager’s Association CEO Lord Redesdale has questioned if Esos can actually be enforced

12 October/November 2015

and the Environment Agency admitted last month that it “plans to normally use enforcement notices where necessary and serve civil penalties only in the most serious cases”. The Agency wants businesses to take the initiative and at least find out how no- or low-cost energy efficiency measures could significantly reduce their energy bills and carbon emissions. Consultants consistently argue that many firms could save 10% of their

energy bills by taking measures that cost virtually nothing. Not to do so is negligence. Perhaps, after sufficient deadline extensions, the Environment Agency should rethink its approach. Esos and energy efficiency subsidies? Esos is a European-led initiative. The signs are that it could yet become central to UK energy policy. The recent HM Treasury consultation on consolidating green energy taxes – which closes 9 November – points in that direction. Part of the consultation also raises the prospect of better financial incentives for energy efficiency. Options mooted in the consultation include feed-intariff style subsidies, supplier obligations and competitive fund allocation. The consultation also suggested that “government could

match-fund’ investments in energy efficiency and low carbon measures; and/or that there could be a link to audits (e.g. Esos) whereby businesses could claim an incentive to cover the cost of implementing actions highlighted by audit reports, or in return for more reporting”. The consultation states that government is open to considering such proposals, to be funded through increases in taxation provided they represent best value for money. Businesses and energy managers will likely welcome any incentives. But if the sluggish response to Esos tells us anything, it is that energy efficiency – essentially free money - is a low priority for the majority. Will a tax-funded handout make the difference? If the government is considering more carrot in the form of subsidies, perhaps it should also wield a bigger stick. te

Agency guidance on enforcement The Environment Agency stated on 8 October: “We do not expect to normally take enforcement action on organisations that submit an Esos notification of compliance by 29 January 2016 providing they have told us by the 5 December that they are going to be late. “We will look more favourably on firms that can show that they have taken serious and timely steps towards compliance so organisations should do as much as they can before the deadline even if they know they will not be in a position to comply fully by 5 December 2015. Such steps could include: s Evidence of booking an ESOS lead assessor s Starting to collect or analyse data for ESOS s Beginning to conduct site visits for an assessment “Where an organisation submits a notification after 29 January 2016 the situation will be reviewed on a case by case basis. We plan to normally use enforcement notices where necessary and serve civil penalties only in the most serious cases.” On 30 October, an Environment Agency spokesperson told The Energyst that the number of compliant organisations had reached 606, up from 371 three weeks earlier. “It’s fair to say there has been a modest acceleration in the numbers,” he said, “and we have been getting some positive feedback about our enforcement approach through our helpdesk.”

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COVER STORY

How BidEnergy is transforming th BidEnergy combines advanced sourcing with deep energy market knowledge, backed by some of the best cloud-developers on the planet. Designed literally on the back of a napkin in one of Melbourne’s many world-class coffee houses, the founders wanted to put the customer firmly in control of their energy spend

here are many customer pain points with energy. For a start, the bills are complex, making them difficult to interpret. Fearing a data deluge, many organisations stick with one supplier then outsource the management function to a consultant. The trouble is, whether managed in-house or externally, the processes for receipting, validating and paying bills are highly manually intensive, leading to delays, inaccuracies and for many organisations, back-bill problems that can undermine financial reporting and end otherwise promising careers. As a market-led company, BidEnergy asked customers to describe their energy challenges and identified three universal themes. The number one frustration was: “where’s my data?” It was usually to be found sitting on a consultant’s spreadsheet, limiting visibility in the organisation, providing only a partial view and requiring up to a week to refresh information and produce updated forecasts. Surely this should not happen in the digital age? The second frustration was data accuracy: bills were frequently late or missing,

errors were common – if they were checked – and CSV files that were often validated instead of the bills provided a summarised and frequently inaccurate view. Third, the relative lack of in-house expertise was compounded by these limited resources being consumed with chasing data and relatively low-value issues, rather than focusing on strategic value adding. Suppliers – understandably – preferred to have an exclusive relationship with the customer. But if they were to be subjected to competition they wanted a transparent process with clear ground rules. No dodgy deals to give the business back to the incumbent. If the current supplier created additional value for the client then this should be factored into the bidding process as a real switching cost. With a vision to solve these problems and put the customer firmly in control, BidEnergy’s design philosophy was simple: automate, automate, automate. This drove a “bill-centric” architecture: capturing the original tax invoice PDF, parsing the data using a proprietary methodology and conducting algorithmic validation on

With a vision to solve these problems and put the customer firmly in control, BidEnergy’s design philosophy was simple: automate, automate, automate 14 October/November 2015

each line item. Workflow automation is deployed to learn the billing cycle, alerting suppliers when anticipated bills are missing and generating an accrual report that eliminates nasty surprises. With confidence in the integrity of the data set, bills are straight-throughprocessed with a simple integration to the customer’s accounts payable system. Working at the site and meter level, issues that are often missed in consolidated bills are readily identified and can be “reconsolidated” for reporting and payment processing. The productivity gains for the customer have been huge, as the organisation can access a common data set for their diverse reporting requirements and strategic business analysis. Having the data in one place and accessible 24/7 also enables sophisticated portfolio reviews to price-check, benchmark and interrogate tariff structures. By integrating billing and interval meter data, demand, power factor and take-or-pay can be monitored to mitigate penalties and reduce operating costs. Constantly updated data also means that going to market for pricing is reduced to a few days, rather than a weeks- or months-long mobilisation exercise. Automation has also lifted many artificial constraints on suppliers, that limited their ability to bid expressively on the parts of the portfolio that suit their ever-changing

hedge positions. By doing so, BidEnergy has enabled customers to find the tipping point between economies of scale and economies of scope in the supply chain, opening up the supplier base to wider and more sustained competition. Automation has a productivity bonus for BidEnergy also, enabling the business to provide consulting advice as part of a flat subscription fee, paid directly by the customer. With no back-door commissions, the interests of BidEnergy are aligned with the interests of the customer at all times. The ability to see the original bill and the data alongside each other and to download information at the press of a button, customer expertise is also building, so that the limited available resources are equipped – and have the time – to focus on activities that genuinely add value to the organisation. Now, when the CEO asks for an update on energy spend – or any aspect of it – there is no longer a long delay while people scramble to put an updated report together. It’s all there on a smart phone app – good for business and good for personal career management. From its antipodean base, BidEnergy is now established in the UK, with launch plans for the North American market firmly underway. Commencing with electricity the scope has been extended to gas and water, with further service benefits in the pipeline for its expanding base of customers.

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g the energy category

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October/November 2015

POLICY & LEGISLATION

Veolia in carbon tax call Veolia has called for an EU-wide corporate carbon tax to be implemented at COP 21. The Energyst also heard the firm’s plans for a carbon-linked border tax

eolia chairman and chief executive officer Antoine Frérot has declared his company’s support for the wide-scale deployment of a carbon tax. Speaking at Veolia’s ‘A corporate carbon tax – the last chance to stop climate change?’ event in London, Frérot reminded attendees that the fight against climate change called for the implementation of a number of essential measures to ensure its success. Frérot announced that the tax should be set at ¤30 to ¤40 per tonne of CO2 and needs to be clear and easy to understand, while ambitious in its approach. Veolia has called for the tax to be implemented at the United Nations Climate Change Conference in Paris (COP 21) in December, where business, government and public bodies will come together to accelerate international sustainable development. Frérot said: “COP 21 is a unique, potentially lastchance, opportunity to cap global warming at 2°C. This can be best achieved through a carbon tax to be implemented on a large scale. “Polluting is currently free, while decontaminating is expensive. Clearly this is unfair and must change. A carbon tax would incentivise businesses to look towards more sustainable technologies and renewable energies. “In addition, the money raised by the tax can be invested in sustainable technology and paid to those who invest to ensure their

16 October/November 2015

COP 21 is a unique, potentially lastchance, opportunity to cap global warming at 2°C

EU emissions border tax for imported products Antoine Frérot also raised the idea of an EU border tax linked to carbon emissions coming into the EU if the products originate in an area that doesn’t have an emissions trading scheme or carbon taxes in place. He said: “I think [that] would be compatible with WTO rules.” He believes that to avoid non-EU disparity, a tax on all products entering the union should be set at the same level as industry in EU. He suggested that we can tax imports as the euro market is the biggest in the world so producers in his opinion would want to change. Regarding Europe’s energy-intensive industies competing in the global market Frérot said that border control can work both ways, so an export reduction of tax would be applicable.

operations are ‘carbon-free’. There needs to be a system where the ‘polluter-pays’ and the ‘environmentally conscious’ are supported. “The EU can, and must, lead on the issue by introducing its own carbon tax. While a tax would make EU goods more expensive, negative effects could be offset by a carbon customs duty on goods entering the EU. “Without action, life will become unsustainable in some regions, extreme weather will become the norm and we risk huge geopolitical and economic consequences.” Frérot explained how the first step is to give carbon a robust and predictable cost. Veolia is taking the lead on this by establishing its own internal carbon tax, which aims to price carbon at ¤31 per tonne by 2030. In April this year, the company committed to the World Economic Forum and Global Compact commitments, reinforcing its September 2014 commitments to the World Bank and the Prince of Wales Corporate Leaders Group Carbon Price Communiqué. te veolia.com

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Unlocking finance The Investor Confidence Project Europe releases first Building Renovation Investment Protocols

acked by !1,92 million of Horizon 2020 funding, the Investor Confidence Project (ICP) Europe has released its first draft protocols in September. The protocols are the first component of the ICP System which standardises how energy efficiency projects are developed and measured. Building owners, project developers, finance and energy service providers, insurers, local authorities and utilities all stand to gain from the ICP system, which is aimed at unlocking access to financing for the building renovation market. Originated by the Environmental Defense Fund, ICP is already attracting big

name investors in the banking world. The Energy Efficiency Financial Institutions Group (EEFIG), a group including Deutsche Bank, ING, Allianz and BNP Paribas, has cited investor confidence as the top priority for transforming the energy efficiency market and highlighted the work of ICP as a model that Europe needs to follow to unlock investment. Until now, limited actuarialquality project data and industry fragmentation have discouraged investors from putting their cash into energy efficiency. To remedy this, ICP Europe is forging strategic alliances with the financial and efficiency sectors to develop project development and underwriting standardisation

through its Energy Performance Protocols and embed the protocols into their partners financing processes for renovation projects. By streamlining transactions and increasing the reliability of projected energy savings, ICP Europe intends to build a marketplace for standardised energy efficiency projects. The individual projects can then be aggregated and traded by institutional investors on secondary markets – just like mortgages or other asset-backed securities. Dr. Steven Fawkes is a Senior Advisor for the project, “Governments and NGOs have for years been talking about how energy-efficiency is the low hanging fruit, which

can bring a healthy return on investment,” says Steven. “But, despite the actions of a few market leaders, investing in it is not as easy as it’s made out to be, otherwise everybody would be doing it. We want to change that. We want to make it become a standardised product and then an indispensable part of every institutional investor’s portfolio.” te europe.eeperformance.org

P272: Businesses suffer due to industry chaos P272 - a new scheme under Ofgem’s Balancing and Settlement Code (BSC) requires businesses with electricity supplies within profile classes 05 to 08 (deemed maximum demand supplies) to be settled on the half-hourly market. Energy suppliers will use half-hourly data to calculate actual energy usage and will price and bill these supplies accordingly. The transition of these supplies to be settled halfhourly is still being finalised by energy suppliers and district network operators (DNO) despite this impacting contracts starting on or after 5th November 2015. As Melanie Kendall-Reid, compliance director at energy consultancy Carbon2018,

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pointed out, “It is frustrating that, while the industry has been aware of this legislation for a long time, the parties involved have not got their house in order to ensure a smooth transition takes place.” The changes required under P272 are being managed in different ways across the market. It is the responsibility of the DNO to assign available capacities and, while some are managing this well, others are much further behind in the process. A number of energy suppliers have decided to differentiate between renewals and new acquisitions by guaranteeing that no additional charges (i.e. available capacity, DUoS and TNUoS) will be added for the first year to new acquisitions,

but not for renewals. There are also some suppliers still undecided as to how they will handle the transition or pricing of these supplies. Once these supplies transfer to half-hourly, they will be legally required to have Meter Operator (MOP) and Data Collector (DC) agreements in place. The majority of energy suppliers are pushing for these contracts to be signed ahead of supply contract renewal, providing customers with the option to use their preferred suppliers. However, it is often better to arrange independent MOP and DC contracts. Not only are they more competitively priced but, as these contracts are typically five years in duration and energy supply contracts only

1-2 years, they offer greater flexibility should the decision be made to transfer energy suppliers, as supplier-based MOP/DC agreements tend to have restricted access. Kendall-Reid commented: “With energy suppliers unsure as to how these electricity supplies will be contracted, billed and the pass-through elements charged for, combined with DNOs not having assigned capacities to supplies, the consumer will be the one to suffer. How can budgets be accurately set when there is no clarity as to what charges will be passed on? Also how can contract offers be accurately compared when there is no consistency in approach?” te carbon2018.com

October/November 2015

POLICY & LEGISLATION

Less waste, more growth A report released in October features new analysis showing how the UK electricity system wastes a staggering £9.5bn from the loss of energy (54%) before it reaches users

ess Waste, More Growth: Boosting energy productivity has been published by an unlikely coalition of 14 organisations, including those that represent industrial manufacturers such as EEF and leading environmental groups such as Greenpeace. The new report calls for an increase in government ambition on energy productivity and sets out three recommendations, which if implemented, could transform this wasteful inefficiency into a huge growth opportunity for the UK economy. The analysis, led by the Association for Decentralised Energy (ADE), identifies the total loss of energy is worth the equivalent of £354 per household, more than half the average UK annual electricity bill (£592). This waste equals the power generated by 37 nuclear power stations; a landmass the size of England of Bioenergy crops; or wind turbines covering 40% of Scotland. All this waste undermines efforts to create a competitive, modern economy as both consumers and businesses are faced with higher energy costs. The report outlines a number of immediate, practical and cost-effective ways of reducing this waste, which could save the equivalent of £116 on every householder’s energy bill; a total of more than £3bn a year. • Inherited from the public system of the 1960s and 1970s, less than 10% of UK power stations currently recover waste heat, and this represents a missed opportunity to

18 October/November 2015

Less Waste, More Growth Boosting energy productivity

www.lesswastemoregrowth.co.uk

The fact that we waste enough energy to pay half the electricity bill of every home in Britain should be a national embarrassment

save £2bn annually. • The UK could save the equivalent of £23 per household just by upgrading our electricity network’s efficiency to match that of Germany’s. • Appropriate, long-term policy support could cost-effectively reduce business and public sector bills by £570m, improving competitiveness and investment. Main recommendations The report outlines three main recommendations to help achieve these savings. 1. Government should aim to improve energy system productivity year on year as is done in competitor countries like the US and Germany, with the purpose of reducing energy costs for users. 2. Electricity generators, networks and businesses should be able to contribute to a strong, more productive economy. For business, this means combining a revised energy tax regime with clear, simple and investable policy to leverage improvements in energy productivity 3. Government should enhance the natural market direction with a more solution-based approach to its energy policy assessments, allowing the

demand side and the supply side to compete equally. ADE director Tim Rotheray commented: “The fact that we waste enough energy to pay half the electricity bill of every home in Britain should be a national embarrassment. Wasted energy reduces our productivity, undermines efforts to create a competitive economy on a global level and causes unnecessary emissions. It does not have to be this way. The productivity review is a great opportunity for government to focus on how it can support investment in cutting energy waste.” Dr Douglas Parr, policy director at Greenpeace UK, said: “Cutting energy waste wherever possible should be a no-brainer. You can lower energy bills, cut carbon emissions, and boost energy security at a single stroke. Whatever our differences on clean energy the government must surely realise the obvious benefits of making our energy system more efficient. The broad sweep of organisations supporting this initiative shows that a genuine welcome awaits an effort in this direction.” Paul Raynes, EEF policy director, said: “British firms and British consumers are paying swingeing surcharges on their power bills while these far lower cost options remain untapped. The sinful waste of energy before it before it even reaches those bill payers isn’t fair on them, or the planet. We should prioritise opportunities to cut carbon emissions in ways that don’t hurt consumers or competitiveness.” te lesswastemoregrowth. co.uk/report

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Advertorial

DEMAND SIDE RESPONSE

Reduce your demand to spark energy savings Policy uncertainty and predicted energy price rises. What can businesses do to protect themselves in this difficult market? Demand side management will play an increasingly important role in both business energy strategy and in meeting the UK’s future energy generation needs. What is ‘demand side management’? The term encapsulates demand side response (DSR) and energy demand reduction. Put simply DSR means changing your demand on the grid in response to a signal, usually price, in return for payment. It could be reducing consumption, changing use of on-site generation or moving consumption to a different time of day. National Grid has a number of schemes which businesses can participate in which all provide incentives for taking part. Energy demand reduction is much more straight-forward – monitoring and analysing energy consumption in order to target savings. The growing significance of demand side response was highlighted by National Grid’s recent announcement that it would invest up to £400m by 2020 in DSR initiatives to help balance the grid. Why should I be interested? In the complex and everchanging world of energy, there are some things businesses have very little control over. Energy policy and energy prices are good examples of that. However, you can really help manage energy costs by reducing consumption. Many businesses already load manage during winter Triad periods (peak periods

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of clients reaping the benefits of demand reduction through the use of our monitoring and verification tools. We have saved more than £5m for one large banking client in 2014 through energy optimisation alone. Savings for that business are forecast to increase further in the coming years by deploying sector-leading monitoring and verification processes. where cost is higher) to reduce their annual network transmission costs. Energy demand management offers a genuine opportunity to help manage your total energy bill. DSR also offers potential for revenue from one of a number of market incentives. Many businesses are already using the latest software and building management systems (BMS) to control and monitor their energy; showing when, where and how they are using energy 24-hours a day. Pinpointing your energy consumption in relation to the peak time you pay the most for your energy could help target cost savings. Businesses and consumers pay the most for their energy between 4pm and 7pm and by making a minor tweak, such as turning down the thermostat by one degree during this period, you could achieve significant savings. We’ve worked out that if one of our large clients reduced

consumption by 10% in their biggest 10 offices between 4pm and 7pm they could save £300,000 per year. Clients are showing increasing interest in demand side management. DSR is still relatively new and take-up is currently quite low. However all indications are that this area will become significantly more important in the future. We’ve certainly noticed a growing interest from our clients in finding out more about DSR and what the benefits may be. We already have a number

How do I find out more? At Mitie we have the experience and market knowledge to ensure that you reap energy and cost savings from managing your demand. You could even potentially make some money from the latest demand side response initiatives. By reducing your exposure to prices at peak consumption times you will reap the most rewards: insulating yourself against future changes in legislation and market price movements whilst reducing your energy bill. Find out more: www.utilyx.com

Mitie’s Energy Proposition At Mitie, we’ve recently pulled together all our energy expertise under one roof. This brings together our existing energy experts in Mitie and those in our energy consultancy Utilyx to deliver end-to-end energy management services businesses want. That means we can deliver everything from strategy to on-the-ground technical delivery under one umbrella. Find out more: www.utilyx.com

October/November 2015

DEMAND SIDE RESONSE

United Utilities: Think small to scale demand response United Utilities is building towards an aspirational target of 20MW of frequency response via Open Energi. The water company could conceivably do more demand side response (DSR), says energy manager Andy Pennick, but that would require stronger incentives to make smaller loads commercially viable. Brendan Coyne reports

nited Utilities aims to create about 50MW of demand response capacity during the next five years, of which 30MW will be diesel generators providing Short Term Operating Reserve (STOR) services. For the frequency response component, energy manager Andy Pennick says flexibility was key to rolling out the technology, which works by controlling pumps and motors used in the water and wastewater process. By using asset flexibility, United Utilities now earns revenue by helping National Grid maintain frequency at the optimum 50Hz. That revenue will be reinvested into reducing its energy bill, one of United Utilities largest operating costs. “Our operational requirement is to meet compliance standards, so we have to be very careful when we introduce new pieces of equipment that we don’t put any of that at risk,” says Pennick. “But we can still comply with environmental constraints and be flexible provided we meet quality requirements.” Operating within set points and controlled parameters “works with us, because our availability changes due to lots of variables, such as the weather,” he says. “We can’t say ‘we will be available next Tuesday’ because we don’t know for sure what will be

20 October/November 2015

happening at that time. So that is why the Dynamic Demand system works really well with our business.” “We are primarily looking to mitigate against our own rising energy costs and demand-side response provides a good income stream to do that,” says Pennick. “The income can then be reinvested against our existing asset base.” Pennick says it is too soon to quantify precisely how far DSR measures reduce the bill. However, given energy is one of the company’s highest operating costs, it is likely to be substantial. “It’s hard to say because we are still at the early learning stage of rolling out at scale. We have had some success, but it is early days in our understanding of the market and of our own assets’ flexibility.” A double digit percentage? “I don’t think we will be taking tens of millions of pounds off of our energy bill with demand side response,” he says. “But we are looking at high single figures.” As well as the STOR programme, United Utilities also Triad manages and undertakes red zone tariff avoidance. “Pumping water into reservoirs, for example, we will preferentially do overnight if operationally possible,” says Pennick. The firm is also “keeping a watching brief ” on the capacity market.

I think you need to look at how you make it cost beneficial to bring in those smaller motors, pumps and drives… currently it is just not worth it

Asked what might help scale the broader demand response market, Pennick said it boiled down to money. “Ultimately for us is it is a commercial decision to become involved in DSR,” says Pennick. “We have lots of smaller assets which could be flexible, but the cost benefit to put them into the market doesn’t necessarily stack up. “Whoever is buying the service needs to be aware that 100kW might cost us the same to put into frequency response as a megawatt,” he continues. “To scale the market, I think you need to look at how you make it cost beneficial to bring in those smaller motors, pumps and drives. We would like to put them in and we could put them in. But currently, it is just not worth it.” te unitedutilities.com

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Where the smart money’s at SmartestEnergy says its new demand response service puts users in control of provision

martestEnergy is launching a dynamic service to enable customers to benefit from reducing demand at peak periods. The company has agreed to provide demand side response (DSR) capacity in the government’s Capacity Market auction expected in January 2016. Customers signing up to its new Smart DSR service will receive payments in return for reducing consumption when demands on the grid are high. They can get paid for taking part even if they are not called on to cut demand, and the service also offers wider energy saving and efficiency opportunities. Customers are grouped together to share the

obligations via a partner that manages the whole process from start to finish. Chief executive Robert Groves said helping customers become smarter consumers of energy through the launch of Smart DSR was a natural development for the company. “Demand side response offers an exciting opportunity for the businesses we work with to turn their energy use into an asset and make significant savings,” he said. “At a time when larger businesses are increasingly looking to be more responsible over their energy use, it also has wider benefits in terms of making energy demand more responsive and sustainable, reducing CO2 emissions and helping the nation avoid the risk of blackouts.”

SmartestEnergy is licensing software from EnerNOC to support the new service. The service covers all aspects of taking part in demand response including technical set-up and testing of equipment and software required, performance monitoring and payments. Customers can opt to reduce their commitment to just peak hours in the winter months and stay in control of what response they provide at any time. “It is designed to be flexible so if a customer who has signed up can’t reduce demand for whatever reason, this can be covered within the portfolio,” explained Groves. While some firms may struggle to make processes flexible, a significant proportion of electricity demand in many

companies can be flexible through the powering down of part of their operations, shifting them to a different time in the day or using on-site generation. Refrigeration equipment in cold stores for example can often be switched off for several hours without temperatures levels rising too high, or companies can align emergency generation testing and maintenance to test under load and earn payments. National Grid has said it is keen to see a much greater role for DSR to help ensure a secure, sustainable and affordable electricity system. It has estimated that if just 5% of peak demand is met by DSR solutions it could benefit consumers by approximately £790m. te smartestenergy.com/DSR

Making load management loads easier Dong Energy has introduced a cloud-based tool to help businesses manage consumption more intelligently, save energy costs and generate revenue from greater flexibility. The firm says Power Hub technology takes complex information and produces simple, easy to use recommendations, scenarios and optimal run schedules for time-poor energy professionals. It automatically identifies the best times to turn down consumption, as well as avoiding periods of peak demand where network charges are at their highest, making a material difference to a business’s energy costs. Power Hub is a result of five years of research and

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development, says Dong, to ensure that businesses operate their plant in the most optimal way. The software translates an array of market data, peak cost periods and intelligence into simple, meaningful action. It does this by producing bespoke, daily guidance detailing the most commercially optimal way to increase and decrease

production, switch import to export and manage load. Jeff Whittingham, MD of Dong Energy Sales UK, said: “Businesses are often told that a reduction in costs can only be achieved through significant investment in energy reduction, but maximising flexibility can realise reductions in energy costs as well as bringing new revenue into the business.

During our 2014 pilot, we worked with a manufacturer to optimise their CHP assets using Power Hub. This resulted in an annualised saving of £200,000 on total energy spend, via a combination of increasing exported power and a decrease in usage from the grid.” Against a backdrop of an increasingly complex industry, Dong says Power Hub provides energy professionals with a viable way of accessing the benefits of demand side schemes and avoiding peak costs without substantial time investment. The Power Hub product has been shortlisted in the Innovation of the Year category at the 2015 Energy Awards. te dongenergy.co.uk

October/November 2015

GAS & ELECTRICITY

Cold comfort for major user as price spikes loom Energy intensive users have been promised a full refund on energy policy costs. But energy experts are predicting a spiky winter with large I&C customers to feel the pain. Brendan Coyne reports

nergy-intensive industries will be refunded against the cost of energy policy, David Cameron has promised. The PM made the pledge during prime minister’s questions on 28 October, stating that as soon as the move was granted EU state aid approval, “we will pay that immediately”. It is proposed that costs will be covered for the duration of the current parliament. The news follows a government announcement a day earlier that the steel industry would be given more time to meet EU emissions regulations, which are due to kick in from January. If the EU approves the move, plants will be given another four and a half year’s grace. While wholesale energy prices in 2015 have hit a six year low, transmission and distribution costs as well as costs for renewable generation are pushing up bills for business, particularly large industrial and commercial firms. Some energy services firms have predicted that from next year, electricity costs will continue to reach new highs every year until 2020 (see chart based on Utilitywise’s forecast model). While projecting slight declines in wholesale costs, additions for low carbon and renewable power, as well as capacity market charges, could take average prices paid towards £110/MWh by 2019/20. That would represent a power bill increase of around

22 October/November 2015

25% and mean that wholesale costs would represent less than 40% of the total. Separately, changes to the energy industry’s cash out arrangements are likely to lead to higher spikes in power spot prices. According to research published by New Power magazine – see http://bit. ly/1jDJxA8 – energy intensive industries will be hit hardest. While its survey respondents suggest that demand side measures could be one way of mitigating costs, the reality for many intensive industries is that equipment, processes and production patterns are not easily made flexible. Any insulation from rising

costs will be welcomed by what remains of UK industry. In managed decline for decades, manufacturing industries still employ some 2.6 million people and in 2013 accounted

for 10% or £150.7bn of national economic output. However, if energy intensive users are protected from policy costs, it is likely others will have to pick up the tab. te

Flexibility a challenge for major users Large I&C businesses customers have most to lose from a spiky winter but there is not much more they can do in terms of mitigation and demand response, according to the British Ceramic Federation. “Those that can may come offline. But many of our members run continuous processes and so can’t necessarily forego power at short notice,” says technical director Andrew McDermott. “So spiky prices are a problem in the short term and there is very little some members can do to mitigate that.” There is also a “pernicious” longer term impact. “Whether it is a genuine risk or perceived risk [to security of supply], it starts to jeopardise investment and erode business confidence

and these are often global businesses,” says McDermott. “To rely on large users to come off the system at peak times to satisfy demand elsewhere in the economy is a bit of a sticking plaster.” Will the risk of spikier prices and rising non-fuel aspects of energy bills drive large industrials to be more energy efficient – and to invest more in onsite generation? “Energy makes up to 35% of production costs. It is such a big chunk that if you don’t have your eye on that ball you won’t be in business too long,” says McDermott. Onsite generation and demand response Spikiness will lead energy intensive firms to look “ever more closely” at demand

response and onsite generation, says McDermott. The problem with the latter is planning permission does not always allow renewable generators to be sited, or for back-up generators to be run at will. In addition, emissions generated from diesel gen-sets can be captured by the EU ETS. In terms of demand response, he says members already switch off when possible to avoid Triads and red zones. “The feedback from our members is that for those that can [participate], the incentives are there. That is not the issue,” says McDermott. “Demand management tools are great, but we need to have enough generation so that we are not reliant on big users coming off at short notice.”

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GAS & ELECTRICITY

Energy companies call for a global price for carbon Energy companies, global businesses, and heads of state have welcomed the recognition of carbon pricing in the draft negotiating text for the UN Climate Change talks, due to commence in Paris at the end of November writes Nikki Wilson, Alfa Energy

il and gas companies from Europe, Saudi Arabia, and Mexico united in October to call for an effective agreement at the Paris summit. The companies, which included BP, Shell, and Total, committed to limit gas flaring and reiterated calls for a global carbon price, which they believe will provide the economic certainty for investment in carbon capture and storage (CCS). Total’s CEO, Patrick Pouyanné also highlighted the role that gas will have to play in a low carbon economy, saying: “Whatever people think, we still need fossil fuels. We need to make advocacy for gas. We need to explain to our policy makers that

gas has to be encouraged”. Negotiators met in Bonn last week with the aim of reaching consensus on a draft text ahead of the Paris talks. A section was included on carbon “acknowledging that putting a price on carbon is an important approach for costeffectiveness of the cuts in global greenhouse emissions”. In addition, the World Bank has announced a new Carbon Pricing Panel, made up of world leaders and business representatives to look at how carbon pricing could be implemented on a global scale. Businesses believe a global carbon price would create a level playing field and encourage investment in low-carbon technologies. One approach to pricing

It really is about time we were all a bit more open about the challenges this industry faces

carbon is through a cap and trade scheme, under which polluting installations have a cap on their emissions levels and installations with surplus emissions can sell permits to those that are exceeding their cap. To date, approximately 40 emissions trading schemes have been established around the world, including the EU

Combining the power of a business community An exclusive energy buying consortium has launched that will enable businesses in a Yorkshire borough to pool their resources together and benefit from greater energy buying power and savings on their energy bills. The ‘Energy Purchasing Club’ claims to be the first of its kind in Yorkshire and sees a partnership between Calderdale Council and UK energy experts Orchard Energy. By joining forces with others in the region, businesses which join the scheme will get access to better deals on their

24 October/November 2015

energy bills – the bigger the hub, the bigger the savings – as well as long-term stability with their energy prices. Orchard Energy already has long-standing customers in the region, and will provide a dedicated account manager who will work closely with each business that becomes part of the consortium to create longterm strategies that will lead to measureable energy savings. Calderdale Council and Orchard Energy have already negotiated a plan to purchase directly from energy companies to provide business

users some of the lowest priced energy in the UK. Interested businesses will have the choice between a flexible or traditional fixed contract. The flexible option allows businesses to maintain their individuality by being able to manage their own trades, but also benefit from the micro management of costs through their dedicated account manager, who can also, along with a flexible pricing analyst, advise on the best time to purchase. Credit issues can also be absorbed by the whole group, as well as third

party costs, which can either be passed through or fixed. Cllr Barry Collins, Calderdale Council’s Cabinet Member for Regeneration and Economic Development, said: “Calderdale has a high population of manufacturing businesses that are heavy energy users. With support from Orchard Energy, Calderdale businesses will reap substantial long-term financial benefits. This builds on, and will help to boost, the Council’s Environmental Business Awards scheme, which provides free environmental accreditation and expert

Sponsored column

Being business-like with energy efficiency distribution transformer could provide an immediate energy saving opportunity. Why?

life expectancy of 25 years it really is imperative to select a transformer with the lowest losses for new installations (payback on upfront capital investment is typically achieved within three years, meaning 22 years of net adding to your bottom line) wherever possible. Where your existing capital equipment is 15 years or older, fast-tracking a replacement could be a very effective energy efficiency measure: replacing old transformer technology with new super low loss amorphous solutions such as the Wilson e2 can generate up to 5% in energy savings through loss reduction alone.

Reducing transformer losses Two types of losses are present in the operation of transformers: 1. No-load losses that occur in the transformer cores due to hysteresis and eddy current losses which are constant and present as soon as the transformer is energised – that is 24 hours a day and 365 days a year. 2. Load losses that occur in the transformer’s electrical circuit due to resistive losses that are a function of loading conditions. Can total cost Put simply, once of ownership your distribution thinking make transformer is a difference? energised you As part of are wasting Energy saving the the new energy Eco Design directive legislation, through the national associated is expected to regulating losses. make authorities Wilson advise to go above Power Solutions and beyond specified acknowledged this minimum loss levels and unnecessary waste and choose the most energy pioneered the UK’s first efficient product where super low loss distribution economically justified. transformer incorporating However, this way of amorphous core technology thinking doesn’t come in 2009. The Wilson e2 naturally – for some reason transformer product we often are pretty shortalready exceeds Eco Design sighted when making big specifications planned for infrastructure decisions: where 2021, thereby achieving our European neighbours, ie unrivalled lifetime savings Germany, have long opted for in both energy costs and the best possible machinery associated CO2 emissions. and infrastructure equipment in order to secure long-term Would you drive 100 miles benefits, the main focus in a day in a 25-year-old car? the UK has largely been to Not many people would be keep upfront investments to a comfortable commuting long minimum. It might not initiate distances in a 25-year-old car a new industrial revolution on a regular basis. You can but I think that adopting probably see the banknotes total cost of ownership draining away at the pump thinking could help transform right now just thinking business across the UK. I’ll about it. Yet surprisingly certainly watch this space. te few people realise that Lore Grohmann is marketing operating an old, inefficient manager at Wilson Power distribution transformer Solutions is not much different. wilsonpowersolutions.co.uk With a minimum product

16TWh

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Turning an energy-saving idea into reality nearly always relies on getting the required investment, either internally or externally. Understanding the options and supporting proposals with a sound business case is essential, says Geoff Newman of Sabien Technology. In recent years many good ideas to increase energy efficiency have fallen by the wayside due to lack of available finance or a convincing business case. Awareness of thirdparty schemes to help finance such projects, as well as a sound business case, can greatly improve the potential for the project to go ahead. In the public sector, for example, there are a number of schemes available that can help with funding. One that may be familiar is Salix Finance Ltd, which illustrates the general principles. Salix allows any public sector body that receives the majority of its income directly from the public purse to apply for interest-free loans to finance up to 100% of the cost of energy-saving projects, dependent on fulfilling certain criteria. The scheme is an excellent way of supporting your energy efficiency plans. There are also schemes to help fund energy-saving projects in the private sector, such as those offered by the Carbon Trust. Frequently though, energy managers in the private sector are seeking investment from within their own business, often competing against other departments for available capex. In all these cases it is essential the business case is strong and, just as importantly, in language the CFO will understand. Most CFOs are more interested in returns than terms like sustainability and carbon. The proposals should look beyond a simple payback. It is likely your CFO will be looking for Internal Rate of Return (IRR), Return on Capital Employed (ROCE) or Net Present Values (NPV). Understanding which metrics are measured by your finance team and what information they require will increase the chances of gaining funding. For example, when boiler load controls such as Sabien’s M2G are

installed, the typical cost savings are 12% across an estate with payback in less than two years. However, when you enhance the business case and include mitigated carbon tax costs (eg the CRC), IRR of more than 17% and ROI of 156% the business case becomes very compelling. Consequently, the energy efficiency project may deliver a better IRR than other projects within the organisation. Once the financial team and board see this, it will be hard for them not to allocate the budget and prioritise the project. In this respect, the provider of energy-saving technology should be able to help with development of the business case. For example, Sabien has helped many public sector organisations take advantage of the funding available from Salix for projects using M2G to reduce gas consumption, providing detailed business cases which go beyond the simple payback. Subsequent measurement and verification of such projects is a must as the finance team will want to know the benefits realised from the investments. If you can present evidence 6-12 months after project completion, confidence will increase, making future investment easier to obtain. The key things, then, are to understand the full extent of savings that may be achieved, verify that achievement with accurate measurement and verification and then use that data in support of ongoing investment in energy efficiency.

www.sabien-tech.co.uk

VIEWPOINT

While we welcome a more simple structure and believe the new policy could provide more clarity and transparency, the balance between compliance and action should be understood

Reforming the energy efficiency tax landscape Energy Services and Technology Association (ESTA) director Robin Hale looks at the possibility of a streamlined and coherent energy tax landscape

32 October/November 2015

onsolidating years of policy into a more simple tax system could be providing what the industry has been looking for. How it plays out, however, is perhaps another matter. With the majority of reporting and tax schemes caught in the scope of the consultation, including the newly formed Energy Saving Opportunities Scheme (Esos) and Electricity Demand Reduction pilot will a catch-all policy allow for

a more joined up approach across all private and public sector organisations? Before the release of the consultation, discussions have taken place with government highlighting the concerns the industry faces such as burdensome reporting, compliance-based approach to policy, energy as a non-core cost, generating the business case, lack of skills and access to finance. Although not new issues, the consultation does bring

an opportunity to address and assist with some of the more complex procedures; and from the outset of questions to respond to suggests that a one tax and one reporting scheme for a single business or organisation is the direction we are headed. What could a possible new system look-like? A tax system based on the current Climate Change Levy perhaps through a simple pence per kWh differing by fuel to allow for varying emissions impact would provide a neater approach. This coupled with tax reliefs for energy intensive industries would assist those that need more protection from energy volatility and competition. In addition, the need for an

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Will the government’s tax reform hit the mark? audit will still be required to comply with Article 8 of the European Energy Directive and board approval should be included for the annual reporting. The report could cover most aspects including green house gases, renewables and efficiency opportunities. A revised scope for the current Esos audit could be considered, but perhaps use of an international standard such as ISO50001 would provide a more substantial base to better understand and make decisions about energy use. Simplifying the current system in this way should mean a less administrative burden on end consumers and also tie purchasing and energy reduction together. Efficiency opportunities in this instance become highlighted

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through a tax based on usage. That said, the key to the success of any new system and potential gains in energy reduction is to address businesses where energy is a non-core cost element. Setting the right message and policy burden for the finance director (or perhaps the accountant for smaller enterprises) may be the only way to gain traction for efficiency measures and opportunities at the lower end of the market. This is not just a challenge for this revised tax landscape but is something for the industry as a whole to understand and help to implement a solution. While we welcome a more simple structure and believe the new policy could provide more clarity and transparency, the balance between compliance and action should be understood. The question of what happens to identified savings opportunities that are kept in the desk drawer should be considered. Although there will be discussion regarding current incentives which could be lost in this new landscape, it is perhaps an approach that should be welcomed. The consultation questions err towards the positive and suggest that while the government can be expected to raise revenue and put energy on the boardroom agenda, it is the industry that should be providing the solutions for energy reduction through the efficient use of energy and should there be continued engagement with demand side experts we may be able to address some of the concerns the industry has been facing. With the decision and response coming out in the 2016 budget, there should also be time for the government to understand and provide sufficient time for a transition to the new landscape. te esta.org.uk

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BUILDING CONTROLS

History in the making Priva’s retrofit upgrade of Westminster Abbey’s BMS brings performance and cost benefits, while reducing the laborious checks required with the previous BMS from hours to seconds

estminster Abbey, one of London’s most important religious and historic buildings, has undergone a building management system retrofit. Using Priva Blue ID, the new BMS has replaced an outdated system, bringing the building’s heating and ventilation function into the 21st century. As a result of the project, temperature control within the abbey is far more efficient, while the extensive and laborious checks required with the previous BMS are confined to the history books. In fact, some jobs

34 October/November 2015

have been reduced from hours to just seconds. Time for change Fed up with requesting support from the abbey’s system integrator in order to attend failures associated with its previous BMS, which was installed in the 1990s, clerk of works Jim Vincent decided enough was enough. “It was in dire need of upgrade,” he says. “The controls weren’t communicating very well and kept failing, which meant I would have to call our system integrator, Electrical and Mechanical Controls [EMC], to attend to the issue. This obviously incurred costs both

in terms of time and money. Eventually, EMC convinced me that a retrofit would make financial sense, especially using Priva Blue ID.” Priva Blue ID hardware consists of a base, on which individual functional modules featuring all the missioncritical components can be installed. In the unlikely event of a failure occurring in a module, the failure will remain restricted to that specific part of the system. The base is always live, and communication always remains intact. Two-week retrofit EMC was able to replace the old system with Priva Blue

ID across most of the site in a little more than two weeks. One of the huge cost efficiencies of the project was that Priva Blue ID could use the existing BMS network, including the temperature sensors. What’s more, Priva two-wire technology meant that the existing twisted pair network could be used for IP communications. Compared with installing a whole system network from scratch, the ability to retrofit Priva Blue ID technology has minimised costs significantly. In one instance, a large panel in the abbey would have incurred considerable costs to change, but EMC was able to simply replace the controls.

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Furthermore, due to the sensitivity of the existing building fabric and the history it contains, the usual running of cables and fixing of temperature sensors would have been impossible: drilling holes and clipping cables to 1,000-year-old surfaces was clearly not appropriate. Energy management in historic buildings is often a challenge due to this issue, but Priva’s retrofit capabilities provided a simple solution. Also of important consideration was that the reduced upheaval of the retrofit option would lessen disruption and inconvenience for the high footfall of worshippers and tourists. With the system installed during the winter of 201415, ongoing temperature control was vital. The new BMS network

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is a mix of controllers using ethernet and twowire connections, with full scalability moving forward (unlike the previous system). The system helps preserve a host of important artefacts within the abbey, especially in the museum, which needs to be kept at a constant 20°C, with humidity at 50%. The heating and ventilation controls, now under Priva Blue ID control, play a vital role in meeting these requirements. The numerous panels located around the site feature Priva S10 controllers with various input/output modules to suit the specific plant, while certain other panels have a Priva Blue ID Touchpoint installed on the front for local access to the equipment. Front-end benefits Mr Vincent says that one

I can view the system with a web browser on my PC, using either our internal network or remotely of the best attributes of the new BMS is the front-end user interface, which he describes as “idiot proof ”. “I can view the system with a web browser on my PC, using either our internal network or remotely,” he says. “The format is very simple and easy to understand. Previously I had to use engineering software, but there was no front end. I used to be an electrician so it was fine for

me, but the rest of the team couldn’t understand it.” Now, if Mr Vincent needs to change anything, he can just click a button on the screen. This is in marked contrast with the previous system, where a change would necessitate calling one of his staff, and asking them to walk to the control room to sort it out. With the previous system, a staff member was required to spend two hours a day walking around the boiler houses, which are spread across the site, to check that nothing had tripped and everything was working as required. Now, Mr Vincent simply logs on to his PC in the morning to see if the system has flagged any faults. A two hour job has been reduced to little more than 30 seconds. te priva.co.uk

October/November 2015

BUILDING CONTROLS

Omnipotent controls Timóleon’s says its latest launch means one range to rule them all

key consideration in achieving genuine energy efficiency and fuel savings from high-performance renewable technologies is having the correct controls. Timóleon says its recently launched Omnie range brings together heat pumps, mechanical ventilation with heat recovery, surface cooling and its range of underfloor heating systems; all optimised by using state-of-the-art controls. The entry level comprises programmable room thermostats as well as simple dial thermostats (the latter requiring the use of a separate programmer), which are intended to be used solely with underfloor heating. Both are flush mounted and modern in appearance. Then, viewed as the logical choice for consumers seeking to cut bills and enhance comfort

levels, Omnie achieves its true potential through the use of network controls, claims the firm. These are configured around the Omnie control hub: an all-in-one interface with touch screen available with four different frame options. The hub can be used to control heating, hot water, ventilation and cooling. It is linked via a wiring centre to slim-line, room temperature

and humidity sensors to give very accurate temperature regulation. Further accessibility is provided by the availability of an Omnie smartphone app, which means users can control their room temperatures from anywhere in the world. Overall the Omnie control options enable building occupants to operate their heat pumps and other appliances

or services in a sophisticated yet straightforward manner. That, says Timóleon, will maximise both fuel efficiency and the enjoyment of their internal environment. te omnie.co.uk

Smart wireless controls for radiator valves Chalmor has extended its eTRV smart radiator valve range with the launch of a wireless control system – WeTRV. An alternative to the existing manual programming option, WeTRV enables individual radiators to be set to operate timed programmes at specific temperatures without the need to access the radiators individually. Available alongside Chalmor’s manual control eTRV+, Chalmor says WeTRV can speed up, simplify and streamline zone-by-zone control of radiators across

36 October/November 2015

estates by providing the energy manager with at-a-glance, online remote management. In addition, it extends the energy saving benefits of smart radiator valves to buildings such as apartment blocks and social housing schemes, where access to individual radiators may be

restricted by residents being in situ, according to the firm. WeTRV is launched as part of a commercial wireless control solution, WeControl, which also features energy saving controls for lighting and electrical appliances. The WeControl range is accessed online via PC, tablet or

smart phone, allowing building managers to make maintenance savings by monitoring energy use and making adjustments to controls remotely. The range is provided as part of a tailored service package, including site analysis and design, installation and commissioning. It can be purchased through capital investment or via the Chalmor Heat Service Agreement, where monthly payments are designed to be equal to or less than the savings made each month from reduced energy costs. te chalmor.co.uk

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COMMERCIAL HEATING

Dovetailing CHP and solar thermal »

Often it’s not just individual components of a heating and hot water system that are important; a combination of products working together can also greatly increase efficiency. Chris Meir, sales director at Andrews Water Heaters, explains why installing a water heater alongside other low-carbon technologies can make economic and environmental sense

ontributing 38% of the nation’s carbon emissions, the commercial sector has a significant role to play in meeting UK carbon reduction commitments. Heating and hot water in particular can account for a considerable amount of an organisation’s energy use, so it is of course essential that the system specified is as efficient as possible to achieve carbon reduction targets. Specifiers are now turning to alternative methods to improve a building’s green credentials, with hybrid systems quickly becoming a popular choice – particularly where solar thermal and combined heat and power (CHP) have been used to great effect as the lead heat source.

Solar thermal energy Pre-heating direct-fired water heaters using solar thermal energy significantly reduces * the &(' energy $ # " consumption ! # % ) &( &+ ! of the appliances while guaranteeing

a reliable hot water supply. In the UK, commercial solar thermal systems are able to supply around 30 to 40% of the annual hot water load, known as the solar fraction (SF). In summer months, well-designed solar thermal systems could supply almost all of the hot water demand, whereas in winter the SF will drop to about 20% due to the lower solar irradiation. Commercial solar thermal solutions use either glazed

Solar thermal systems can be used to reduce a building’s carbon footprint all year round

TD-SILENT ECOWATT

■ ■ ■ ■ ■

flat plates or evacuated tubes to harness solar energy. These easily installed, roofmounted solar collectors capture energy from solar irradiation, including infrared and ultraviolet rays, so even on a cloudy day solar energy can used be to support the production of hot water. The heat absorbed by the collectors is typically passed into a transfer fluid, which is then pumped through a coil, heating the stored water. While there is clearly more benefit in the summer, solar thermal systems can be used to reduce a building’s carbon footprint all year round, particularly with evacuated tubes, which are considered more efficient. Solar thermal systems work in tandem with directfired water heaters, with the latter acting as a failsafe to ensure that there is no break in hot water delivery and that the water is heated to the correct temperature. Further savings can be made »

Sound levels down to 24dB(A)@ 3m Airflows to 1600m³/hr at low SFP EC motor and high efficiency mixed flow impeller integrated 0-10V speed control for Trickle & Boost Compact inline fan solution for supply or extract air

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October/November 2015

COMMERCIAL HEATING by choosing manufacturers which offer mounting frames for quick and easy installation of the solar collectors, minimising disruption on site and lowering labour costs.

inside the building. Just as with any CHP system, sizing and designing the system to suit the building is essential to get the most out of this highly effective carbon saving technology.

CHP Knowledge and expertise CHP has an important role The benefits of to play in improving integrating the efficiency of low carbon UK buildings, technologies particularly into a water those with heating high and A UK commercial system continuous solar thermal’s input are clear. heating loads. However, Savings to hot water load as with all are made sophisticated from electricity technology, being produced it is advisable to by CHP using natural work with the experts in gas rather than purchasing order to maximise energy electricity from the grid, and carbon savings. plus the generation of Where possible, it is heat. Compared to power beneficial to source all produced by CHP, electricity components from the same from the grid is subject to experienced manufacturer. transmission losses, and costs For example, Andrews three or four times more Water Heaters is part of than that produced on site1. Baxi Commercial, which CHP makes use of the also includes CHP expert ‘waste’ heat from the SenerTec – this means it will generation process that would have in-depth knowledge as otherwise be lost, capturing a group about the products and using valuable heat and will understand how onsite. UK power generators best to combine them – emit more heat through resulting in better design and their cooling towers than best practice installation. the country’s entire demand Manufacturers should for gas-fired heating. provide support throughout By using waste heat, CHP the project, from the plants can reach efficiency initial site visit to the postratings in excess of 80%. installation assessment and Compared with the efficiency final commissioning stage, as of gas power stations, which well as during the servicing in the UK range between schedule which is particularly 49% and 52%, CHP can be important for CHP. te approximately 30% more andrewswaterheaters.co.uk efficient than traditional heating plant electricity2. 1) The average cost of electricity When it comes to working from the grid is 14p per alongside water heaters in kWh. However, the gas used a hybrid system, CHP units to generate electricity on site are effectively designated costs an average of just 4p as the lead heat source, per kWh (energysavingtrust. providing pre-heated water org.uk/domestic/content/ to the water heaters via our-calculations) storage or buffer cylinders. 2) theade.co.uk/whatMeanwhile, the CHP system is-combined-heat-andgenerates a steady supply power_15.html of electricity which is used

35%

38 October/November 2015

Renfrewshire cuts boiler costs Following the installation of Sabien’s M2G boiler optimisation controls to 77 boilers across the Renfrewshire Council estate, Sabien was asked to provide measurement and verification to demonstrate the levels of cost savings being achieved. Using the council’s consumption data and regional degree day data an average reduction of gas consumption of about 14% with a 1.7 year payback was calculated. The project to enhance boiler optimisation by retrofitting M2Gs forms part of the council’s current carbon management plan, which has been developed in partnership with Resource Efficient

Scotland. As such, it builds on an earlier carbon management plan, which achieved a carbon reduction of 28.35%. Craig Doogan, energy team leader for Renfrewshire Council, explained: “We are continually evaluating opportunities to further reduce energy consumption and recognised that boiler dry cycling was a potential problem. The M2Gs were installed across our estate quickly with minimal impact on our operations. The post-project verification using CUSUM analysis provided by Sabien clearly indicates the savings being achieved are in line with our expectations.” sabien-tech.co.uk

New controls for Hovals Hoval has launched the TopTronic E, a new system controller for Hoval boilers, calorifiers, heat pumps and other heat sources with the ability to control one or multiple conventional and low carbon heat sources with a single unit or in cascades with up to eight units. It eliminates the risk of trying to work with different controllers for different appliances and system configurations. With ‘plug and play’ modular hardware, TopTronic E allows easy extension of an existing system with additional Hoval components (eg solar thermal panels or an additional water heater). It can also operate

alongside the new TopTronic Supervisor within a fully scalable system for the real-time visualisation, monitoring and optimisation of district heating networks. For remote monitoring and system optimisation, TopTronic can be accessed via an integral internet connection. It will also integrate with a BMS using ModBus or KNX interfaces and is ‘smart grid’ ready. hoval.co.uk

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are widely specified for low cost hot water, heat, steam and CHP have proven high efficiency, reliability and ease of maintenance safely co-fire biogas and natural gas or gas and gasoil provide state of the art boiler/burner controls and remote monitoring are designed to operate with ultra low NOx emissions can be quickly and safely retrofitted to all makes of boiler deliver high turndown ratio (10:1 on gas) for high operating efficiency

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COMMERCIAL HEATING

Sunny outlook for hot water costs The best things in life are free, says Stokvis Energy Systems director Paul Sands. Or nearly free. Once solar thermal kit is paid for, more than two thirds of hot water is on tap

ost people will have at some time heard the assertion that the Sun is the source of all life on earth. The energy from this vast fusion reactor warms the atmosphere to our planet while irradiating the plants and trees; helping them convert carbon dioxide into oxygen and promoting growth. While this has been happening as part of the daily solar cycle, geological forces have been converting the dead trees into the coal, oil and gas which we are now burning to heat our buildings or in power stations to generate electricity – a cycle taking countless thousands of years. There are, though, short cuts available if we want to make use of the sun’s virtually limitless energy. The star at the centre of our universe has a surface temperature of some 5,500 degrees, resulting in the solar radiation reaching the Earth’ surface over just a half hour period being equivalent to all the energy consumed by the world’s population during a whole year. Passive solar gain is now an important aspect to the calculations under Building Regulations for our homes and business premises, though its contribution to a property’s overall energy consumption is rather difficult to control. Also part of the equation for the past decade has been the contribution which so called alternative energy can make to achieving government and European targets: with technologies such as biomass boilers and ground or air source heat pumps growing

40 October/November 2015

in popularity. The most obvious change to the UK’s built environment in recent times, however, has been the growth in the number of solar panels installed on both new and existing properties. What is different about solar panels compared with the other renewable energy technologies is that their ongoing costs are negligible. Biomass boilers require constant topping up with costly wood pellets, while heat pumps typically offer just a 3:1 increase on the electricity they consume. There are also important differences about the types of solar panel available on the market. Photovoltaic or PV panels produce direct current electricity which then has to be converted into alternating current for use in virtually all commercial and domestic applications. Crucially, the power has to be used

immediately or fed back into the National Grid. Solar thermal panels, by contrast, produce hot water which is normally stored to be available over long periods, depending on demand. It is accepted that – even in our northern latitudes – over a year the sun can provide some two-thirds of the hot water requirements for a typical household. In commercial and particularly leisure applications, if the system is sized correctly, this proportion could be even higher due to the often seasonal nature of the business. There are also two different types of solar thermal panel available: the basic flat plate collector, and the more sophisticated tubular alternative. The evacuated tubes offer much higher efficiency through reduced heat loss, and can be rotated in their frames to take best advantage of a roof ’s

orientation to the Sun. Then it is possible to choose the way in which the hot water produced is used. The collectors might be deployed to help heat a swimming pool or some other spa facility, and can even contribute to underfloor heating. In respect of hot water supplied to taps or showers, Stokvis normally recommends using the solar energy in a preheat capacity, so that hot water is ‘topped up’ with heat from a conventional boiler via a plate heat exchanger as necessary. This arrangement prevents boilers constantly cycling as they attempt to keep tanks at the necessary temperature for practical and health reasons. We can see then, that making the capital investment in high performance solar thermal collectors offers an off-grid solution to effectively fix the cost of hot water production for a period of decades. It has taken the Earth many millions of years to convert vegetable matter into the fossil fuels we are consuming today, at a staggering rate in our buildings and for transport. North Sea oil production peaked several years ago and we are now a net importer of gas. These carbon dioxide producing fuels are fast running out, and in the medium to long term their price will only rise more quickly. Meanwhile, we are really just beginning to discover the true value of direct solar energy: meaning capital costs are starting to come down. te stokvisboilers.com

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COMMERCIAL HEATING

ErP – what you need to know Jonathan Tedstone from Potterton Commercial says now is the time to swot up on your knowledge of the Energy related Products Directive

rP for space and combi heaters finally came into force in September, offering facilities managers a consistent comparison for product energy efficiency standards across the EU. Boilers up to 70kW are affected by the energy labelling element of the directive. This has a number of implications for commercial boiler sales and for likefor-like replacements. Governments from around the world are expected to sign up to a new global carbon emissions agreement at the UN Climate Change Conference in Paris. With the non-domestic sector responsible for 38% of UK emissions, any pledge is bound to put further pressure on facilities managers to invest in energy efficient technology. As heating and hot water account for a considerable amount of a commercial building’s energy use, FMs should see the new European Union legislation – generally referred to as ErP – as a welcome move. Having come into force on 26 September, the Ecodesign Directive and the complementary Energy Labelling Directive apply to many product groups (known as ‘Lots’). For the heating industry the most important is Lot 1, which covers space heaters and combi space heaters, including LPG, oil and electric boilers, dual fuel boilers, micro combined heat and power (CHP) under 50kWe and heat pumps. Essentially, the directives will mean two things for

42 October/November 2015

Facilities managers should view it as an ideal opportunity to upgrade to a more energy efficient condensing boiler

light commercial boilers. Firstly, Ecodesign will ensure that space heaters and combi space heaters of up to 400kW that do not meet certain efficiency criteria will not get a CE mark, so manufacturers will no longer be legally allowed to supply these products into the supply chain. This is designed to drive carbon emission reductions and help achieve the EU’s 20-20-20 energy and climate change objectives. Secondly, energy labelling will mean that space heaters and combi space heaters of up to 70kW will require an energy rating and a label. The energy efficiency bands will initially range from A++ to G, but will eventually extend to A+++. Where a product is installed as part of a package – which, for the purposes of ErP, would include one or more space or combi heater/s, plus one or more temperature control/s and/or one or more solar device/s – a package label must be completed by the person combining the package components for hand over to the end user. Facilities managers should know that in most cases this will be the contractor carrying out the installation. Commercial buildings do of course already require a form of energy performance marking, in the form of an Energy Performance Certificate (EPC). As an EPC must be made available when buildings are constructed, sold or leased, the Energy Labelling Directive will be a useful tool for FMs in helping to demonstrate the business case for investing

in appliances that will enhance EPC ratings and reduce running costs. With that in mind, as and when an existing non-condensing boiler needs replacing, facilities managers should view it as an ideal opportunity to upgrade to a more energy efficient condensing boiler. Traditionally, specifications for buildings with a basement plant room would have opted for a sectional, pressure jet boiler which was easy to get down the stairs and put together in situ. However, the development of wall hung boilers coupled with cascade frames means that an ErPcompliant solution can now be specified in combinations to suit any installation. Like sectional boilers, the cascade frame is transported into the space in parts and put together in situ, making them an accessible option for even the most awkward situations. While upgrading from a non-condensing boiler would mean that the flue would also need changing, the seriously reduced running costs of the condensing boiler would mean that the cost of the flue replacement would be paid back with interest. Facilities managers should be confident in welcoming ErP as a tool that can help to support the introduction of energy efficient solutions. By familiarising themselves with the legislation, FMs can be safe in the knowledge that they are getting the right advice and benefitting from cost and carbon savings in the process. te pottertoncommercial.co.uk

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COMMERCIAL HEATING

Who’s driving the efficiency improvements? The Energy Related Products Directive (ErP) came into force in September, setting out minimum efficiency criteria for products that use energy. But will it really have the impact the EU is hoping for? Stuart Turner, national sales manager, Hamworthy Heating weighs in

rP essentially forces the sub 400kW boiler market to purchase energy efficient condensing boilers. But what the directive fails to recognise is that boilers only achieve these efficiencies if installed, set up and controlled in the most effective way. In other words they need to be installed in a system where they are working in condensing mode (return temperatures need to be at less than 55°C for the boiler to actually start to condense, so typically systems are designed with return temperatures of 30°C). Otherwise they will only achieve marginally better efficiencies than a high efficiency noncondensing boiler. Manual control “This year more than half of the sites I visited had their controls set to ‘on hand’,” says

44 October/November 2015

Hamworthy’s Stuart Turner. “In other words they are on manual control requiring user intervention to make changes to the way the system operates. If a sequence controller was installed in these multiple boiler systems it would enable the boilers to be controlled in such a way that they modulate together to match the load. By firing the maximum number of boilers needed to match the load - with each operating at or near its minimum modulation - each boiler would be operating in its most efficient state, i.e. part-load. This maintains very high system operating efficiency and removes wastage of energy or overshooting. “If weather compensation controls are also installed then

the system adjusts accordingly to the outside temperatures and allowing boilers to condense whenever suitable system conditions permit. “A lot of this is about education and training on controls and control strategy. If heating systems are installed and set up to the manufacturers recommendations, and the building owner or manager has an understanding of how the system operates, they can benefit from massive reductions in their energy use, gas bills and carbon emissions. “We cannot fit and forget,” says Turner. “Regular service and maintenance will help keep the heating system and boiler working at its optimum efficiency and ensure it has

a long life. It will also help identify any issues before they result in failure or downtime. “Plus, the system needs to be monitored to spot any spikes or changes. It is vital to keep a watchful eye on the gas consumption of your building to notice a change in the way it is operating which could signify a leak or identify a need for change in the current control strategy. It will also enable you to demonstrate a return on investment if you are replacing old boilers in a heating system.” Turner concludes: “The industry needs to take control, go above and beyond the legislation to ensure we gain the real benefits that ErP is hoping to proliferate.” te hamworthy-heating.com

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Financing Energy Efficiency 2015 Report

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10/04/15 15:47

VIEWPOINT

Energy and society – how do we bridge the communications gap? Communication is key to developing a constructive energy debate within the profession and wider society. But we are not doing it properly. Energy Institute chief Louise Kingham wants your ideas

n the Energy Institute’s Energy Barometer report, published earlier this year, EI members cited public engagement as a major challenge for the energy sector. People are at the heart of the energy industry, both as the resource driving its delivery and the consumers it serves. Energy users must become more involved in the dialogue of the energy system. It is a two-way process of both sharing and listening. At the United Nations’ 21st Conference of the Parties (COP21), the objective is to sign, for the first time in 20 years of UN negotiations, a legally binding and universal agreement on how to prevent a 2°C global temperature rise. What is agreed will have a significant impact on the energy sector in figuring out how to best meet these policy goals. In the longer term, the challenge will be to participate in a public debate about the emissions target. To what extent does industry and society want to work towards more radical policies that will achieve major emissions cuts? What the EI does – supporting and recognising energy professionals to solve energy challenges – is the ultimate in public benefit because it’s FOR society. The trouble is, it’s usually not WITH society and therein lies

46 October/November 2015

Society hears a cacophony of voices from our industry. How do we fix that?

the nub of the problem for energy development. The EI’s Council has been debating how we can help bridge this gap in communications and build understanding. Over the past 10 years or so, people have generally become much more interested in energy. They want to know about what is happening to prices, who owns the industry and what choices the industry is facing. There is a lot of debate nowadays. It could be whether we should build a new nuclear power station. It could be whether the UK should start fracking. Or it could be whether wind farms are a blot on the landscape or a modern and clean form

of electricity production. The industry has struggled to engage in these debates in a meaningful and positive way. Maybe it is because the industry is generally populated by engineers and accountants or maybe it is because we all have different views ourselves on what we think the right answers are to the choices we face, so society hears a cacophony of voices coming from our industry. The EI wants to improve trust and promote better understanding between the sector and wider society – to present the evidence based on scientific research from an independent perspective – to help people make informed decisions on energy matters. These people are likely to be those who that can make energy system change happen; they just don’t realise the power in their own hands. In society today, energy development is decided anywhere from the highest order of governments all the way to the remotest local citizens. What do you think? The EI would welcome your views on how the energy sector can help society better understand energy issues – join the conversation via Twitter @EnergyInstitute #understandenergy te energyinst.org

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energyefficientlighting

special report

ENERGY EFFICIENT LIGHTING

Finance for lighting Installing energy efficient lighting can be an easy decision to make especially if you need no upfront finance. But trust is an issue. Tim McManan-Smith spoke to Energy Works’ founder Harvey Sinclair about how its energy services agreement can invigorate the adoption of LEDs

n many areas outside of energy saving in business such as vehicles, IT and even process equipment, it is normal to use financed solutions. But until recently that option was not readily available for energy saving equipment, except in the case of very large projects. Getting finance for energy projects has been a perennial problem for many energy professionals. Internally there are often company objectives that take priority and are core to the business’ operation. External finance has been seen as an expensive, complex or that there must be catch. Energy Works aims to aid the implementation of LED lighting technology by paying for the equipment and installation and funding this through shared savings. Having an energy

services agreement such as this produces positive cash flow from the start. Finance LED solution Energy Works’ solution operates on a seven year contract with 25% of the savings going to Energy Works and 75% remaining with the customer. While many LED projects will deliver payback in under two years - even a year if tied to maintenance - Energy Works’ boss Harvey Sinclair claims that the net present value (NPV) of the cash that client’s save with immediate effect (the 75%) is better than the 25% paid to Energy Works. Prospects don’t always believe the numbers. “Trust is an issue,” says Sinclair. “Many potential customers think, what’s the catch? Also it is a seven year commitment, they ask do I

trust the numbers, are they real? Am I going to lose my job and be the first one to look a plonker for doing this?” Related to trust is confidence in data. “A customer needs to know what their lighting costs. Currently, many don’t know. So they have to be comfortable with the costs we show from sub-metering and believe that the savings are possible,” says Sinclair. Energy Works will soon bundle in other technologies. The company started

its business with LED implementations “because it is a straightforward process to commoditise”, according to Sinclair. Energy Works uses third party finance houses to fund the projects - and financiers think the sector is lagging in uptake. One major bank interviewed for the Financing Energy Efficiency report (available as a free download at theenergyst.com) expressed surprise that even the biggest lighting suppliers had not yet got to grips with finance as a core proposition. Sinclair though believes it is a tool that can help ensure clients get the best return from the best equipment. Self-funding is fine, he says, but cutting corners on price for lack of funds will only lead to higher lifetime costs. te energyworksplc.com

How to cut lighting payback periods in half Lighting is one of the simplest ways to improve building energy efficiency, but many firms are using the wrong payback metrics, reports Brendan Coyne. The Energyst readers surveyed earlier this year overwhelmingly stated that they either had implemented lighting projects, or planned to within the next 12 months. Part of the reason is because lighting projects are relatively straightforward and deliver rapid payback, usually well under two years. That makes obtaining sufficient budget attainable. Most of readers

48 October/November 2015

surveyed for the Financing Energy Efficiency report stated that boards largely stuck to a two year payback rule when considering projects. However, much larger savings can be achieved much more quickly by

looking beyond pure payback. Understanding lifecycle costs is the key to unlocking both budgets and energy savings “Energy managers need to understand the various financial options [available to them] and not just simple cash payback,” says Mervyn Bowden, former head of energy at Marks & Spencer turned consultant at Intuitive Energy Solutions. “They are not helped by the fact that most finance departments still don’t get lifecycle cost analysis.” He says using payback as the sole metric can

undermine even relatively low cost lighting projects. But linking equipment upgrades to maintenance contracts can make projects far more financially attractive. “LED lighting swap outs don’t look half as attractive if you use simple cash back on energy. They look incredibly attractive - returns of less than a year - if you use lifecycle cost analysis,” says Bowden. “You are not re-lamping, maintaining, and replacing failures because the LED lights last much longer than the fluorescents you are replacing.” te

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ENERGY EFFICIENT LIGHTING

Coordination leads to savings Don’t overlook the power of controls to reduce the long-term costs of lighting, but be prepared to think strategically to gain the benefits, says the Building Controls Industry Association (BCIA)

hen looking for the lowhanging fruit of energy saving, lighting is often one of the first areas to be considered. Changing to more efficient lamps is a simple, effective step to take and one which many see as an ‘easy win’. However, the control of lighting in offices and other non-dwellings is often overlooked because controls are considered ‘too difficult’ or even too costly. In reality, the long-term savings offered by modern lighting controls justify investment if the building and its function are suited to a more sophisticated solution. So, what are the hurdles? Malcolm Anson, managing director of Clarkson Controls, says: “A lot of people are treating lighting and heating as separate entities but what we are trying to do is encourage them to take the view that everything that needs power also needs to be controlled.” Mark Savage, director of the Next Controls Group, agrees: “This separation of lighting and HVAC is partially driven by the mechanical and electrical split in the construction process where mechanical engineers will deal with HVAC, electrical with the lighting. The opportunity is missed to share components. “I have been in buildings where there are two PIRs [passive infa-red occupancy switches] in the same room – one for the building management system and one for the lighting. When you work out the cost associated

50 October/November 2015

with duplicated product, installation and engineering, it can be quite substantial.” Forward thinking approach The key therefore is for a forward-thinking building manager to approach the project fully aware of the benefits of an integrated control approach and the cost and energy savings which can be achieved by taking this route. Jon Kilpatrick, managing director of building management specialist Detail Design Engineering, says: “An overall lighting strategy as part of the building management system has a number of benefits. Firstly it would ensure that the lights are all switched off at the close of play, for example. Alternatively the system could trigger the outside lighting on a global method rather than each lighting column having its own sensor. A strategy like this provides a useful overview and ensures that

There needs to be more coordination between the two [BEMS and lighting control] in order to utilise the cost savings potential that exists

efficiencies can be achieved.” The decision as to how much a client needs or wants its BEMS to have control over its lighting is, says Kilpatrick, down to the type of building. “We have retail client who is very conscious of lighting controls. On that site, we have three stages of lighting: one for the security guard; another for the cleaners; then one for opening and closing times,” he says. “The system minimises the lighting envelope, and that needs to be done on a global scale by the BEMS. In an office block, you could leave all the internal lights running on PIRs all the time with no global control – someone simply walks in and triggers the lights. So you could argue that the benefits of BEMS control for lighting in an office environment are less obvious than in other applications.” The benefits of integration With the benefits of integration clear, just how

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easy is it to bring lighting into the fold of the BEMS? “By selecting products that utilise an industry standard open protocol, it is very easy,” says Savage. The use of a communication network such as BACNet, ModBUS, LONworks or KNX would enable a BEMS to feed information into a lighting control panel and facilitate an integrated approach. Savage cites the example of KNX as one protocol that is making integration with the BEMS and lighting easier. “It’s an international standard protocol that allows BEMS products to co-exist on a single common cable with the lighting products. This reduces the capital cost of a project by allowing room components to be shared by both technologies. KNX is an opportunity for these products to come together – you can have an architecturally pleasing glass light switch sitting on the same piece of cable as a simple control valve and this can make a real difference in terms of cost.” Anders Noren is the managing director of Priva UK, a manufacturer of BEMS controls and software. He also sees the benefits of an integrated approach between lighting and HVAC control.

“We can add dedicated i-modules for lighting control, so if a building has lighting control fully integrated with our BEMS, we would have one control system and one automation system both for HVAC and lighting control. By doing this you not only have a system which is cost effective; but also one which is easy to operate.” But there is also a solution in the case of a lighting system which has its own dedicated control system, and this is something which may be found in existing buildings. “You can often have very sophisticated lighting control systems running parallel to the BEMS,” Noren says. “In these instances we can use BACNet over the internet to control the device that controls the lighting. So although this is an extra step it still allows us to gain access to that lighting control.” Making it easy For the building manager, the options to control the lighting boil down to one key question: how easy does he want his life to be? The problem is that this question is often not asked during the early stages of the project and installers, designers and manufacturers all agree that it is very rarely

A lot of people are treating lighting and heating as separate entities but what we are trying to do is encourage them to take the view that everything that needs power also needs to be controlled

addressed in a holistic manner. “It comes down to how open-minded a consultant and the contractors are,” says Savage. “In the early design phase, a customer needs to be persuaded to see the slight increase in the cost of BEMS being offset by the lower cost of other packages. An added benefit is that he will only have one network, and that is another cost saving.” And that, says Noren, is where mechanical and electrical need to converge. “There needs to be more coordination at an early stage between the two in order to utilise the cost savings potential that exists by housing control of HVAC with control of lighting, and avoiding the disadvantages of needlessly doubling up.” te bcia.co.uk

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October/November 2015

ENERGY EFFICIENT LIGHTING

Think carefully or face LED Zeppelin There is no silver bullet to achieving efficiency. You have to consider the whole lighting scheme, the fittings as well as the luminaires, maintenance requirements and usage patterns of the building, or it will not deliver, explains Graham White, technical manager for lighting at Eaton

he appeal of LED lighting lies largely in its highly efficient ability to generate more light per unit of electricity than almost any other available technology. In addition to their comparatively long lifespan and high degree of efficiency, other advantages of LED lights are that they are tough and vibration proof, dimmable and small in size, as well as offering directional light, good colour saturation, unlimited on/off switching, no ultraviolet radiation and will typically reduce direct infrared radiation. Important benefits of LED include the high-quality of task lighting, the neutral temperature of the luminaires themselves, energy efficiency during long operational hours and the elimination of disruption relating to regular servicing, maintenance and bulb replacements. Close scrutiny However, despite the stated advantages of LED technology, its introduction into working environments comes with

LED luminaire has been made, it is very important to engage with a reputable manufacturer, since manufacturing a luminaire with LEDs is not the same as manufacturing a luminaire with a ballast and lamp holders to accept a conventional lamp.

a number of additional considerations that influence its performance and costeffectiveness, and these should be considered by specifiers at the earliest stages of the decision-making process. It is a process that also has the potential to be clouded by confusing claims from less reputable manufacturers, which is why specifiers must apply close scrutiny at all stages. First, the LED must be incorporated into a suitable luminaire. This process will inevitably result in a series of step-by-step reductions in LED lumen performance; therefore, the design of the luminaire itself is critical to ensure its performance. Maximising efficacies To maximise the performance and efficacies of the total luminaire, a number of design elements must be taken into account. These include thermal management of the LED, the design of the optics and the quality of the driver. While the performance of the luminaire is important, there must also be an understanding of the practical life of the LED and LED

52 October/November 2015

luminaire. Like all light sources, an LED source will gradually fade over a period of time. The device is considered to have failed at the point in time when the lumen value has depreciated to 70% of the initial lumen value. For LEDs, the metric quoted might be ‘L70B10 50,000 hours’, which means that 90% of the batch is still performing at a minimum of 70% of the lumen value after 50,000 hours. It is also vital to carefully consider the application to determine whether an LED is in fact the most appropriate solution for a particular situation. In the lighting sector, LEDs are only one tool in a large toolbox containing many other viable lamp types. While the LED is attracting high levels of interest, there are still many applications where conventional lamp types offer viable solutions. Applications where an LED does not offer the optimum solution include situations where capital cost is the key driver, the project is intended to have short operating hours or the temperature of the environment is especially hot. Once the decision to use an

Buyer difficulties The Lighting Industry Association acknowledges in its Guide to LED Lighting the difficulties that buyers may face when deciding between products: “Like all products, there are good ones and bad ones. As the technology develops, many more companies are offering LED products for sale and there are plenty of rogue claims being made for the performance of poor quality products. Always look to buy from a reputable manufacturer and look for evidence that the performance has been verified by an authority or third party. Buying poor quality LEDs is a false economy. We would recommend looking at the light output rather than the wattage to judge the lamp.” High-brightness LEDs are relatively expensive to produce because of the precise production techniques involved in the manufacturing process. However, the comparatively higher initial outlay must be weighed against the total cost of ownership, which can be lower than conventional lighting because of the inherent energy savings and reduced requirement for maintenance and replacement bulbs. te cooper-ls.com

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ENERGY EFFICIENT LIGHTING

Ceiling the deal: newgeneration LED downlights Facilities managers and energy professionals looking for efficient, long-lasting and high-performance ceiling lights need look no further than LUMiLife. The leading lighting brand has an extensive range of high-quality LED ceiling lights, designed specifically to help commercial buildings – from offices and schools to hotels and retail spaces – reduce maintenance costs and minimise environmental impact.

he latest additions to the LUMiLife range (available exclusively from trade.ledhut.co.uk) are seven new-generation LED downlights. Ideal for use in a host of commercial applications, they are designed to cut energy consumption by as much as 70% in comparison to halogen and incandescent equivalents, as well as boasting an impressive 40,000-hour average lifespan. Each downlight also has an in-built PMMA diffuser and a 90° beam angle, allowing for an even spread of super-bright light. What’s more, all products in the new range are free of mercury and other hazardous substances, and comply with RoHS and CE standards for ultimate safety and peace of mind. Read on to find out more about each new product’s unique features and benefits. LUMiLife 10W LED downlight (dimmable) Colour options: Daylight; cool white; warm white Lumen outputs: 830 (daylight); 880 (cool white); 800 (warm white) Finish colours: Available in white or brushed nickel Size: 115 x 58 mm Cut-out required: 90-100mm Key features: • TRIAC dimmable (compatible with most leading and trailing edge dimmer switches) • IP20-rated (protected against fingerprints and foreign objects greater than 12mm) SKU: DL-10W-IP20 LUMiLife 7W LED downlight (dimmable) Colour options: Daylight; cool white; warm white Lumen outputs: 420 (daylight); 460 (cool white); 400 (warm white) Finish colours: Available in white or brushed nickel Size: 80 x 39mm Cut-out required: 60-70mm

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Key features: • IP54-rated (Dustproof and resistant to splashes of water) • TRIAC dimmable (compatible with most leading and trailing edge dimmer switches) SKU: CL-7W-IP54 LUMiLife 10W LED downlight (colour-changing) Colour options: Multiple (interchangeable between daylight, cool white and warm white) Lumen outputs: Up to 730 Finish colours: Available in white or brushed nickel Size: 104 x 31mm Cut-out required: 90-95mm Key features: • In-built memory function to store and display setting preferences • TRIAC dimmable (compatible with most leading and trailing edge dimmer switches) • IP20-rated (protected against fingerprints and foreign objects greater than 12mm) SKU: CL-10W-IP20

or brushed nickel Size: 170 x 45mm Cut-out required: 140-150mm Key features: • IP54-rated (Dustproof and resistant to splashes of water) • TRIAC dimmable (compatible with most leading and trailing edge dimmer switches) SKU: CL-25W-IP54 LUMiLife 35W LED downlight (dimmable) Colour options: Daylight; cool white; warm white Lumen outputs: 2,630 (daylight); 2,760 (cool white); 2,570 (warm white) Finish colours: Available in white or brushed nickel Size: 190 x 45mm Cut-out required: 160-170mm Key features: • IP54-rated (Dustproof and resistant to splashes of water) • TRIAC dimmable (compatible with most leading and trailing edge dimmer switches) SKU: CL-35W-IP54

LUMiLife 18W LED downlight (dimmable) Colour options: Cool white; warm white Lumen outputs: 1,480 (cool white); 1,380 (warm white) Finish colours: Available in white or brushed nickel Size: 170 x 45mm Cut-out required: 140-150mm Key features: • ! IP54-rated (Dustproof and resistant to splashes of water) • ! TRIAC dimmable (compatible with most leading and trailing edge dimmer switches) SKU: CL-18W-IP54

LUMiLife 45W LED downlight (non-dimmable) Colour options: Daylight; cool white; warm white Lumen outputs: 3,780 (daylight); 4,050 (cool white); 3,600 (warm white) Finish colours: Available in white or brushed nickel Size: 280 x 52mm Cut-out required: 230-260mm Key features: • IP20-rated (protected against fingerprints and foreign objects greater than 12mm) SKU: CL-45W-IP20

LUMiLife 25W LED downlight (dimmable) Colour options: Daylight; cool white; warm white Lumen outputs: 1,850 (daylight); 2,000 (cool white); 1,800 (warm white) Finish colours: Available in white

For more information on LUMiLife’s new range of LED downlights, or any other product in LEDHut Trade’s extensive industrial, commercial and domestic LED lighting portfolio, please visit trade.ledhut.co.uk or call 0161 655 0660

October/November 2015

ENERGY EFFICIENT LIGHTING

LEDs back on Nando’s menu LED lighting has matured but some early installations have backfired on both end users and lighting providers

ulie Allen is energy manager at restaurant chain Nandos. This year the company has been replacing “the vast majority of halogen fittings” in its existing restaurants. However, Allen says it has not all been plain sailing and the project has been five years in the making. “We had very inefficient lighting, halogens, whatever the lighting designer felt fitted the restaurant,” she says. “They looked lovely but they were expensive to run and replace.” LEDs were the obvious replacement. “But we had some bad experiences when LED was nascent. It took a long time to persuade [the board to revisit the technology],” she adds. Burnt fingers Allen says that the LEDs at the time failed regularly and just didn’t look good enough for a high street restaurant environment. “We had our fingers burnt and so it took a lot of time and analysis: recording actual consumption from lighting circuits; doing the changeover, then recording it again and getting actual results.” But eventually, she says, “LED technology caught up”. “We got signoff for budget this year to replace the vast majority of halogen light fittings in our existing restaurants,” says Allen. “We also have a specification for our new restaurants for a minimum of 85% LED. So going forward we are covered in LED.” Now, however, she says

54 October/November 2015

Nando’s has “the interesting experience of retrofitting”.

This is one of the things I am still in awe of about Nando’s. If you say, and prove, that it is the right thing to do, they will find you the money

Never simple Allen says that what seems simple, often isn’t. “To put the case together, we had to have an idea of what is actually in the estate. A company was bought in to do that. But when we came to do the retrofits, we found that they can’t count,” she says. “They had made assumptions about some of the lighting that isn’t true. You have MR16s and GU10s. They look very similar but they are completely different. So that meant more call outs, which meant more cost, and made it very slow progress.” Allen says the mistakes in assessing lighting stock are not a deal breaker, “but it is not going as quickly as we’d expected had the data been right in the first place”. The cost of retrofitting was also underestimated, she says.

“Some of the lamps were literally plug and play but others we needed new transformers, they weren’t readily accessible which meant more overnight work, which meant more cost. It is not as straightforward as we thought, but we are seeing significant savings.” So despite teething problems, the retrofit is paying off? “Yes, definitely. There are other benefits as well. Less maintenance, better lighting. Because when [the contractor has undertaken works] they have found other issues around dimmer packs which have been fixed, so it has been a good housekeeping exercise.” Was it difficult to get the project signed off? “No. This is one of the things I am still in awe of about Nando’s. If you say, and prove, that it is the right thing to do, they will find you the money.” te

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Intelligent approach to control Bastiaan de Groot, director of Lighting Controls at Havells Sylvania, advises energy managers on how to achieve maximum savings through lighting control

ighting accounts for at least a third of a commercial building’s energy consumption. The installation of a lighting control system will achieve significant savings of up to 80% when compared with having no control system in place, and the advances in LED technology also deliver impressive energy savings (in the region of 60% compared with conventional lighting technologies). There is a dizzying array of options available to the building owner, energy manager or lighting specifier when it comes to lighting control; typically the choice specifiers face is between established industrial systems like DALI and KNX and next-generation solutions that are being developed and launched on the market. Legacy lighting controls are reminiscent of the early days of the computer industry: expensive, hard to use and aimed at trained professionals. In contrast, today’s latest plug-and-play innovations in lighting control provide the commercial environment with sophisticated, yet simple to operate, solutions that deliver very real benefits to clients. Regulations and targets Many of today’s building codes and regulations require advanced controls in order to achieve the highest energy rating. The British Council for Offices (BCO) recommends the inclusion of lighting controls to achieve compliance with Part L of the Building Regulations. The criteria for meeting the BCO lighting requirements include daylight linking, constant illumination and occupancy

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We see lighting becoming the sensor infrastructure of a building control. And of course, when it comes to BREEAM there are also points available for lighting controls that include daylight and presence sensing as well as the ability to set individual light level controls for each luminaire. Distributed Intelligence delivers benefits Installing a lighting controls system in a commercial building is a significant investment. For some organisations taking a conventional approach to installing lighting control would be looking at a payback period of more than five years. However, with the latest generations of control systems the need for wiring and commissioning is removed, reducing the capex investment by up to 30%. Furthermore, the intuitive nature of new control systems enables them to use more advanced strategies, delivering an additional saving of 30%. This brings the payback below the five year mark, and with well-designed systems a period of below three years in achievable. Implementing a new lighting controls system can be a real headache for energy managers; the downtime can cause major disruption in large commercial offices, education or healthcare applications – many of which could be in use 24 hours a day, seven days a week. For

and typical behaviour, can only maximum benefit, consider be achieved through data – having luminaires installed that collected via sensors – which is are fitted with integrated lighting then analysed and acted upon. control. Having the controls There are a multitude of system integrated into the fixture senors available: motion, at the point of manufacture occupancy whether ultrasonic represents significant on-site or infrared that can detect savings, as well as a much sound and heat, ambient smoother specification, design, light sensors and for rooms installation and commissioning within a commercial building process. Such systems also that harbour natural light; have the capability to adjust this can harvest daylight to changing surroundings. and help to achieve dramatic That is why we have savings on energy usage. partnered with the innovative In the age of the ‘Internet Australian entrepreneurs of Things’, and cloud-based at Organic Response. We analytics, an intelligent have integrated Organic approach is to bring Response technology all this data within suitable together, perhaps architectural linked to a BMS luminaires from system and the Concord Savings LEDs use this data and Sylvania to provide a lighting ranges. deliver compared tailored, flexible Each of these with conventional solution to how luminaires has lighting the building a sensor node is actually being installed during the used in real-time – as manufacturing process. opposed to how planners ‘think’ Each node contains a motion a building might be used. sensor, infrared transmitter, We see lighting becoming infrared receiver, ambient the sensor infrastructure of a light sensor and an intelligent building, with the potential microprocessor. The sensors to collect very useful data, allow the luminaire to be fully which once integrated into aware of its surroundings an organisation’s BMS, can and nearby occupants, with deliver significant data and the luminaire also able to cost savings. Using the data broadcast information to collecting from the lighting nearby luminaires to create a system, it would be possible harmonious lighting system. to adapt other services to The system is self-configuring, reduce costs, reduce cleaning, requires no additional cables heating, cooling and ventilation and offers higher energy savings costs by closing parts of the and quicker payback periods building not used, adapt than conventional solutions. security services, even adapt the catering costs of a staff An intelligent solution? cafeteria to ensure provision Understanding the occupants is in sync with the needs. te within the building: their havells-sylvania.com presence, movement patterns

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October/November 2015

ENERGY EFFICIENT LIGHTING

pening paragrap hertee community heating technology behind the ecofriendly Kingston Heights housing development is based on an open water source heat pump system that is tried and tested and readily available. Energy from the sun is captured and stored in the river, as it is in any body of open water, so provides an endless supply of renewable energy. For Kingston Heights, water from the River Thames is pumped into equipment in the specially built plant room adjacent to the river. This water passes through a high-efficiency heat exchanger, which transfers the low grade heat in the river water to an internal ‘closed’ water system before the river water is immediately returned, untreated in any way, to the river CO2. This hot, pressurised vapour is then passed through a condenser, where it liquefies and gives off usable heat that is passed to the apartment’s hot water supply and underfloor heating. The liquid refrigerant is then allowed to expand, which lowers its temperature and pressure. This low pressure liquid then expands and absorbs naturally occurring heat from the renewable source – in this case the river. In doing so, the liquid changes back to a vapour, and the whole cycle begins again. te URL at end of story

56 October/November 2015

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Advertorial

Set your tungsten free! With pressure mounting on tungsten and CFL based lamps and luminaires, where can you turn to find quality, functional decorative alternatives? There’s been one dedicated LED brand that has had solutions in situ for almost five years without a single LED failure! Franklite announced the launch of the FRANKled range of luminaires for both commercial and high end residential markets at the back end of 2010. The range has gone from strength to strength because they have developed their own ‘Light Engines’ to be amongst the leaders of quality energy saving technologies. Franklite was well known for their decorative luminaires and was always amongst the first to introduce new lamp technologies to the decorative lighting sector. Having been in operation for over 40 years, the company develops products for specific markets and

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applications for installations such as hotels, leisure facilities and residential care homes, amongst others. FRANKled luminaires incorporate LED light engines that have been designed to create a comfortable and yet cost effective long term solution for most applications. One of the solutions offered includes a variety of alternatives for 2D lamps, which can be supplied installed in most of Franklite’s surface mounted CFL products and their expansive Woburn shade family. The Ecodisc solution provides alternatives for 28W, 38W and 55W TC-DD lamps and can be provided with integral emergency, presence detection, self dimming or dimming via 1-10V, DALI, or mains signal (trailing edge). Franklite didn’t stop there!

The LED13-duo light engine can provide 360 degree radial distribution just like a candle lamp and even looks like one – only it will save you approximately 80% of the energy used by an equivalent tungsten alternative www.franklite.net + 44 (0) 1908 691818

They are well known for supplying large decorative chandeliers and decided to ‘go green’ and develop a new light engine that is a true replacement for the ubiquitous candle lamp, commonly used in chandeliers across the world. The LED13duo light engine can provide 360 degree radial distribution just like a candle lamp and even looks like one – only it will save you approximately 80% of the energy used by an equivalent tungsten alternative! The same light engine is also used in their range of professional no-glare LED downlights. For more details, please email info@franklite.ltd.uk using reference Energy2015 in the subject line to find out more or arrange a local presentation.

October/November 2015

ENERGY EFFICIENT LIGHTING LED floodlighting is up to speed Carbon8Lighting has supplied its high-performance LED floodlights to MotorSport Vision (MSV) at Brands Hatch racing circuit in Kent. MSV, operator of motor racing circuits, manages five separate venues across the UK. Carbon8Lighting’s 600W LED floodlights have been selected to replace ageing 1000W HID fittings. The floodlights are being used for the architectural illumination of The Motor Sport Vision Centre, the company’s head office building. With the circuit load nearly halved, carbon emissions reduced and, most importantly, maintenance costs dramatically reduced, the benefits of carrying out the lighting upgrade was very clear to MSV.

As well as being the site for MSV’s head office, Brands Hatch hosts a range of racing events throughout the year. The company’s circuit electrician Matt Collen said: “The floodlights used to light the main building were about 10 years old and we were not happy with the running costs and constant need for repairs. As we are moving over to LED lighting in other areas on site we decided to look for LED replacements for these fittings. “Having considered a number of suppliers we found that Carbon8Lighting was able to meet our requirements and we have been very happy with the products and the service that goes with them,” he concluded. carbon8lighting.co.uk

CP Electronics is BIM ready ahead of time

CP Electronics has announced that it is fully compliant with building information modelling (BIM) guidelines more than six months before it becomes a legal requirement for governmentfunded building projects. The provision of BIM objects across CP’s entire specification product range is set to improve the effectiveness of the lighting control design process for consultants, architects and contractors. These stakeholders are adopting BIM as an initiative, which requires suppliers to provide digital product information when working on major government-funded projects from 2016 and beyond. The BIM objects are available to download in Revit (rfa) format from

CP Electronics’ website. Revit was chosen as the software platform based on feedback from consultants and architects. CP Electronics’ John Mercer explained: “BIM is not just a software platform to format product data and 3D modelling; it contributes to a more efficient process of data exchange from concept to construction, which minimises conflicts and collision of various building elements and provides client savings at every stage of the process. “More and more architects and specifiers are using BIM even before it becomes a mandatory requirement, and we believe we are already gaining competitive advantage by being ahead of the game.” cpelectronics.co.uk/bim

ControlZAPP

THE SMARTER WAY TO SAVE ENERGY ControlZAPP is the new energy saving lighting controls range with Bluetooth ‘Smart’ interface. ControlZAPP can be used to remotely set-up, adjust or override settings such as occupancy detection, time lag, short visit mode, respond to daylight, override ON or OFF etc at different times of day to an accurate schedule, even different holiday and shut down settings. ControlZAPP is easy to install and configure and is ideal for flexible energy saving and end user comfort. FOR MORE INFORMATION PLEASE CONTACT US ON:

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58 October/November 2015

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VIEWPOINT

That was the WEEC that was The World Energy Engineering Congress was held at the Orange County Convention Centre in Florida from 28 September to 2 October. UKAEE treasurer Eunice Mabey discusses the Association of Energy Engineers’ annual main event

ith a corporate mission “to promote the scientific and educational interest of those engaged in the energy industry and to foster action for sustainable development”, and membership base of more than 17,500 professionals in 98 countries, the AEE is widely recognised as a global energy engineering association. I was privileged to attend on behalf of the UK Chapter of AEE (UKAEE) and it certainly was more than I had imagined. Approximately 3,000 people attended from more than 20 countries. There were more than 200 seminars to choose from, tracked themes and an exhibition hall including UK-based companies. You have to admire the organisational skills of the AEE. And if that wasn’t enough, the keynote speakers included Dr Jackie Ogden vice-president of animals, science and environment, Walt Disney Parks, and Dr Condoleezza Rice, 66th US secretary of state. From various discussions, it was clear they are certainly doing a lot of positive work in the US to reduce energy and carbon but reassuringly they still have the same battles

we all face in getting things done and ‘‘switched off ’. I had previously known of AEE as the training arm of the CMVP (qualification arising from the International Performance Measurement and Verification Protocol (IPMVP)), yet naively hadn’t grasped the enormity of its worldwide presence. The main common certification programmes are the Certified Energy Manager (CEM), followed by CMVP then the Certified Energy Auditors (CEA) courses. These programmes are taught across the 98 chapters bringing unity, common practises, interesting stories and enriching networking to every conversation. To see the passion and how energy management is being undertaken worldwide was truly amazing. Seeing professional colleagues facing the same difficulties and politic agendas yet remaining still enthusiastic and striving to embed energy management into their commercial world was nothing short of inspirational. Under article 8 of the EU Energy Efficiency Directive, (the UK transposition being better known as Esos), the CEM and CEA course is

UKAEE The UKAEE is the UK Chapter of the AEE. To find out more, please visit our website at www.ukaee.org.uk. To register as a member of UKAEE please use the following link. Membership is currently free. Log on to ukaee.org.uk/membershipregistration

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L-R: Rajvant Nijjhar (UKAEE chapter president) with Condoleeza Rice, (66th US secretary of state) accredited as a means of becoming an Esos Lead Assessor. We held a European meeting within WEEC with chapter colleagues from Spain, Germany, Greece, Hungry, Romania, Ukraine, Georgia and Ireland. Listening to the professionals in the room, it was clear that the UK and Ireland seem to be ahead regarding article 8, with the rest of Europe still getting to grips with the legislation. To that end, a proposal is being put forward to gain the permission of the EU Commission to accredit CEM and CEA courses across Europe as a whole to meet this EU-wide obligation. This will have far-reaching benefits for those currently qualified as CEM and CEA – in being able to work across

European countries. So the future is very exciting for UKAEE – come be part of it. Other event news: Next year, WEEC will be held at the Washington Convention Center, Washington DC between 21-23 September 2016. For more information please contact President@ukaee.org.uk. The UKAEE will also be hosting a stand at EMEX this year (11-12 November, Excel, London) and is pleased to be supporting the EMA in its annual show. The UKAEE id happy to work with other organisations and peers in supporting the end goals of an more energy efficient world that combats climate change. te ukaee.org.uk

October/November 2015

VIEWPOINT

40:20:40 â&#x20AC;&#x201C; the energy efficiency ratio Energy efficiency is often seen as a process of replacing inefficient products with efficient products; however this seems a simple view of a complex problem. A simple ratio has been adopted by the Energy Managers Association (EMA) as a guide to understanding how energy efficiency can be valued, says CEO Lord Redesdale

he three main elements of energy efficiency are energy efficient product, building control systems and behaviour change. Allocating importance to these three areas is to a degree guess work. However, the general consensus among experienced energy managers is that the 40:20:40 split is a fair estimate. The reason for promoting this ratio is that many decisions to achieve energy efficiency are often based on only one part of the ratio, with two remaining elements ignored. Building controls are frequently used to match power-use to occupancy of a building, but even these systems can fail if unusual events happen or work patterns shift. Energy efficient products are understood to be a quick gain and the most common solution to achieve energy savings. Companies see energy efficiency as a process based on efficient equipment, energy efficient lighting might limit the amount of power used, but switching the lights off while not needed, must be the ultimate goal. Behaviour change is the most flexible and cheapest solution to energy management but is often ignored as too effortful to do. Understanding and promoting this ratio will make companies not only environmentally sustainable

60 October/November 2015

Behaviour change is the most flexible and cheapest solution to energy management but is often ignored as too effortful to do

The energy efficiency discussion and the EMA launch of the 40:20:40 ratio will take place on 11 November 2015 at 11:50 in Energy Use in the Built Environment Theatre at EMEX, ExCeL London. To hear more about the EMA energy awareness training (LEC) visit the EMA Networking area at EMEX at ExCel London on 11-12 November 2015

but also reduce their operational and financial risk that the cost, supply and security of energy will pose to companies in the near future. Energy efficiency is not an end in itself; it is a method of reducing the energy used while a system is in use. The most efficient use of energy is not to use it in the first place. This has to be the starting point in achieving energy reduction. Without human intervention there is no energy use and while this sounds simplistic the human factor is very often ignored. Behaviour change is often seen as in the too difficult to do box even though it could be the cheapest and most effective form of energy efficiency. It has been largely ignored in the workplace, while HSE is mandatory training for many employees, energy training, which could save companies significant amounts of money, is ignored. When was the last time you went on a company promoted energy efficiency course? The EMA aim is not only to make companies aware of the value or indeed the necessity of energy management training but also to make the energy managers of the future focus on an area they have often avoided in the past. The reason many more companies have not embraced the energy saving of behaviour change is because it is so

difficult to quantify the saving. It is easy to measure the efficiency of say one lighting system against another. However, measuring the impact of different employees in a changing workplace is really difficult to value. Another factor is that training often takes place alongside other energy efficiency measures and attributing the savings to one particular measure can be problematic as the achieved savings become diluted. The real driver for training in the future may not be the sharp hike in peak time prices in 2016/17, nor cost savings but procurement. There is real financial risk in supply companies having to raise prices in line with increases in energy prices. The way to mitigate this risk is to make sure that the supply company is energy efficient and a simple way of proving this is to train staff. It would be ironic if companies are forced to train to meet the demands of their clients while making it a provision of their own supply chain. There is one way to make training widespread and that is for the government to make it mandatory. With power cuts at peak times around the corner this might just happen. In a meanwhile, give the 40:20:40 ratio a genuine thought, will you? te theema.org.uk

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COMPRESSED AIR

Put the air into aircraft Atlas Copco is playing an integral role in supporting maintenance procedures carried out by Monarch Aircraft Engineering at Birmingham International Airport

AEL is the engineering division of The Monarch Group. Its 110,000 sq ft state-of-theart facility in Birmingham complements the company’s existing engineering operations at London Gatwick, London Luton and Manchester airports, and supports MAEL’s ability to provide both existing and new customers with maintenance, repair and overhaul services. Compressed air plays an essential role in aircraft maintenance procedures so special consideration of the air supply access locations, such as positioning flexible hose reels and siting floor channels to limit clutter and allow proximity to the point of use, was all part of the original system design and procurement process. This approach has enabled optimum use of floor space to

accommodate simultaneous maintenance operations on a mix of wide-bodied and narrow-bodied aircraft to be carried out at any time. The Atlas Copco compressor system, supplied and installed by Air Kraft, based in Coventry, comprises two GA30 VSD FF full-feature, rotary screw compressors and ancillaries. These compressors, each with an integrated refrigerant dryer, supply 7bar quality air for

specific applications ranging from combination with air movers for the ventilation and emptying of aircraft fuel tanks, to the operation of air tools for structural fastening and assembly tasks and the blind riveting of fuselage panels. A particular feature of the system is the 300 metre, multi-drop air ring main, constructed from Atlas Copco’s AIRnet modular piping system. Readily adaptable, AIRnet low-friction, seamless

pipework is corrosion free so it minimises pressure drop in the system and effectively contributes to energy efficiency. Commenting on MAEL’s purchase decision, John Swords, the company’s team leader of maintenance, planning and control, said: “We were sufficiently impressed with the performance of the Atlas Copco compressed air solutions already installed at our Luton maintenance operation that there was no hesitation in specifying the system for this milestone development with complete confidence.” The MAEL facility in Birmingham can accommodate almost every aircraft type in its two bays. The dimensions are impressive; the vast building, covering around 2.5 acres is big enough to house four full-size football pitches, 2,400 Minis or 450 double decker buses. te atlascopco.co.uk

ErP to include low pressure and oil-free News that the Eco Design Directive (widely referred to as ErP) preparatory study for compressors has now been widened to include low pressure and oil-free compressors means even more products will potentially be affected, and further delays to the publication of the associated Eco Design Regulations can be expected. Andy Jones, managing director at Mattei, comments: “The Eco Design preparatory study on compressors began in December 2012. The initial scope of the study was standard air compressors/

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general industry compressors up to 375kW. Though the recommendations of this initial study haven’t yet been finalised, if the suggested route is taken, a significant proportion of the compressors on the market – as much as 40% – will no longer be legally sellable, meaning huge changes are in store for the compressed air industry. “However, before the recommendations can be finalised, the European Commission has recently decided to widen the study to include low pressure and oil-free compressors. This is

designed to avoid an update being necessary in the future; these compressors were always going to be covered within the regulations, but at a later date. “This news means several things: more manufacturers are obviously going to be involved and affected; a larger number of compressors are potentially going to need to become more energy efficient; and the introduction of the regulations will be delayed. “With regards to this last point, the size of the task and the time involved should not be underestimated – and we should expect the regulations

to be published at a much later date than anticipated. “Analysing the low pressure and oil-free market in the UK alone is going to take a considerable amount of work; a lot of information and market data is required, which unfortunately is not freely available. “Though we can expect delays to the legislation, once introduced it will help to lower energy costs and carbon emissions, and will make the investment in a new compressor more attractive to end users.” te mattei.co.uk

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VIEWPOINT

A gas saga Just like the title of this article, a gas meter works backwards. Except that it shouldn’t do it. Vilnis Vesma reports

reader of my Energy Management Register newsletter contacted me to say that he had a gas meter on his site that runs backwards when there is no demand. It is a rotary positive-displacement type (see picture) and it is one of a number of sub-meters on a large industrial complex. His first thought had been that the gas in the downstream pipework might be warming up and expanding, pushing back through the meter, but a quick calculation had showed him that this would only account for about 10% of the observed volume. He had established that the meter was the right way around and had mechanical as well as digital readouts that tallied with each other. I put this puzzle to his fellow readers to see what they thought, and got a good crop of ideas. Here are the edited highlights… A few people asked questions and suggested some measurements that might be useful: for example, wanting to know what sizes and types of equipment were on the network, and what the standing pressures were upstream and downstream of the meter (it can only run backwards if the downstream pressure is higher than upstream). One theory was that there is something pressurising the downstream side. This is not completely fanciful; one reader on a similar site mentioned that his own gas system had supplies at both ends, one of which had been capped off. In such a situation, the isolated main supply could easily be the culprit if were imperfectly

64 October/November 2015

blanked off. On a big network it would feed back through the live sub-meter and into other branches if there is even the slightest pressure differential. Some readers asked if there were any gas booster sets downstream of the meter, fitted to increase gas pressure above that of the supply main on high-output burners. When the burners shut off, any residual pressure could force gas back through the meter until the pressures equalised. A lot of respondents asked no questions but fired off some inspired suggestions. One claimed he had encountered a situation in which groundwater was leaking into buried downstream pipework and forcing gas out. Another put forward a similar theory in which trapped moisture could get hot enough to evaporate and drive a meter backwards. Several raised the possibility that air was being pumped in somehow – which could create a gas mixture that could detonate rather than ignite when next called on. Other readers focused on the (higher) upstream gas pressure and the possibility that something might be

If you stop a gear meter like the one in question, it shuts off the flow. As there are safety implications in many of the ideas put forward, that seems like a good idea

causing it to drop. For example, it might be cooling down during periods of no demand. If the upstream pipework is extensive this could draw back a larger volume via the meter than expansion downstream. Water-vapour-in-the-gas theorists suggested that vapour condensing in the upstream network would have the same effect. Both would have only temporary effects, however, and only when other branches were not drawing gas. Two or three people raised the possibility that there were gas booster sets in the other upstream branches and that the suction from those would depress the upstream pressure. Indeed one reader had seen exactly this effect trip out a CHP plant on low pressure. Two ingenious folk invoked the Bernoulli effect, suggesting that if the problematic supply is teed off from a main and high-velocity gas is traversing the junction, it could suck gas from the branch. One reader thought that the meter ought to be fitted with a ratchet, to stop it turning backwards; this is normal with fiscal meters (for obvious reasons) and it is not a bad point. If you stop a gear meter like the one in question, it shuts off the flow. As there are safety implications in many of the ideas put forward, that seems like a good idea. At the time of writing we are still in the realms of speculation and waiting to find out what was discovered. I will publish the answer, when it is found, in my newsletter at www. EnManReg.org. And new puzzles are always welcome. te vesma.com

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WATER MANAGEMENT

Don’t join the foreign legionaires Brian Booth, VP of NCH Europe’s water treatment innovation platform, distills the myths from the truth

egionella creates pneumonia-like symptoms and has the potential to be fatal, particularly if there are underlying conditions also affecting the patient. Surprisingly, given how easy it is to prevent, Legionnaires disease is believed to be growing increasingly common in the UK and across the globe. Unfortunately, it is hard to measure this precisely, as many cases are inaccurately recorded as pneumonia or simply not reported. The causes Problems arise when still water sits at temperatures of 20-45°C, allowing the bacteria to grow and develop. If the fluid is then converted into an aerosol or spray, it can become dangerous. However, due to the UK’s strict legislation and high levels of awareness of Legionnaires disease, particularly in comparison to the rest of Europe where there is a far more relaxed approach, the island nation can claim a death rate of only 10%. Between 2011 and 2013, there were 84 deaths from Legionnaires disease in the UK. Of these, 33% encountered the bacteria while travelling outside the country. Prevention of Legionnaire’s disease The systems that pose the greatest risks are those that include large tanks containing relatively stagnant or still water, including hot and cold water systems, humidifiers, evaporative cooling systems and, in particular, cooling towers, spas and hot tubs.

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In order to minimise the risk of Legionnaires disease, it is essential that all water systems are regularly checked and maintained, abiding by the relevant country’s health and safety regulations. However, at NCH Europe, we recommend adhering to a code of best practice based on the UK’s approach to minimise risk. To ensure water vessels don’t encourage the growth of bacteria, the building or facility owner should keep them at temperatures either below 20°C, where the bacteria will remain dormant, or above 60°C, where the bacteria will not be able to survive. Similarly, facilities and plant managers or maintenance teams should keep the water clear of impurities, including organic matter, sludge, scale and biofilms.

As a building owner you are required to continually update your risk assessment

monitoring and control as well as regular analysis. You should bear in mind that the changes to the Control of Legionella Bacteria in water systems made in the fourth edition were quite significant. As a building owner you are now required to continually update your risk assessment and include a schematic diagram in the case of both domestic systems and cooling towers. For cooling towers, new chemical parameters need You should also address to be measured on a regular the Management of Health basis and taken into account and Safety Work Regulations in order to calculate fouling, (MHSWR), which provides scaling and corrosion potential. a framework for preventing In the case of evaporative health and safety issues at cooling systems, the measured the workplace. Similarly, parameters, in conjunction the Control of Substances with regular inspections, Hazardous to Health should be used to assess Regulations 2002 (COSHH) the cleanliness of the also offers a structure tower and system specifically for the as a whole will prevention of determine the Legionella requirements bacteria, while and the suggesting Deaths from what actions Legionaires disease frequency for cleaning and to take if in UK between 2011 disinfecting your water and 2013 the system as system becomes a whole. This infected. is very distinct The UK’s from the previous Notification of Cooling regulations, like the third Towers and Evaporative edition, which suggested Condensers Regulations 1992 cleaning every six months. should also be addressed, as NCH Europe would should the Control of Legionella recommend that you treat Bacteria in water systems: the harshest regulatory Approved Code of Practice and requirements, which in this case Guidance L8, 4th edition. happen to be the UK’s, as best Best practice would be practice and adhere to them as to contact an expert and closely as possible. If you do, have them undertake a you will find that eventually Legionella risk assessment you will know to run a safe and recommend a programme and well managed facility. te of chemical and servicencheurope.com/en based treatments, including

October/November 2015

WATER MANAGEMENT

t has largely been reported that the benefits to consumers of deregulating the non-domestic water industry will be a slow trickle rather than the opening of the floodgates. While there is an onus on the water suppliers to be ready for competition and in a position to offer tangible benefits to the customer, there is much businesses can do to help themselves. It is said that knowledge is power, and while more and more businesses have a great depth of understanding about their energy consumption, the same cannot always be said for water. Much of this is to do with the current set-up of the water market. A number of big businesses in England have as many as 21 different suppliers. They could be receiving multiple bills to multiple sites and offices, making it quite difficult to understand how much water they are using and how much it is costing overall. What businesses can do now is to gather all their data centrally, look to reduce to one supplier and consolidate to one digital bill sent to their head office. This could save a lot of time and resource and there may be a financial saving, too. Some of our customers are ahead of the game, and are already benefiting from consolidated billing, putting them in the best place to secure the best deal in the future. Although large water users in England, which consume more than five megalitres of water a year, do currently have a choice about their supplier, very few companies take advantage of that. This is thought to be because competition currently excludes waste water services, the largest part of the bill, and because only about 2% of the non-domestic market qualifies as such high consumers. Supplier activity is starting to ramp up and we expect discussions about competitive

66 October/November 2015

Sink or swim? Get ready now to reap the benefits of water deregulation In April 2017, the non-domestic water market is set to change when it is opened up to competition, giving all businesses a choice about their water supplier. Zosia Riesner, director of business development at Utilyx, argues that those businesses that start planning ahead now can make significant efficiency and long-term financial savings national water supply agreements to be under way by next spring, well in advance of April 2017. Water suppliers will be looking to lock customers into national contracts to protect their revenues. Those businesses that have already gained a clear idea of what theyâ&#x20AC;&#x2122;re consuming, where,

when and how much it is costing them, will be able to make the most informed decision. Just as with energy, monitoring use is the first step to target savings. Experience in Scotland suggests that the financial benefits to customers may take a few years to come to fruition while the industry adjusts

to competition. In July 2014, Business Stream, Scottish Waterâ&#x20AC;&#x2122;s retail business for the non-domestic market, reported that Scottish customers had saved ÂŁ100m on their water bills since the market was deregulated in 2008. Evidence of a market shift came recently when Anglian Water Business was named by

Itâ&#x20AC;&#x2122;s a new dawn for competition in the water market in England but danger may lurk if you are not prepared

the Scottish government as the most competitive bidder for a ÂŁ320m contract to supply more than 100 public sector organisations with water and wastewater services. This will mean that Business Stream, the current provider of the service, will see its market share drop to less than 50%, having started out with a 100% market share in 2008. At Utilyx we have achieved some significant cost savings for our customers in Scotland. One of our large customers, a leading High Street bank, has saved ÂŁ70,000 a year from their water bill during the last few years. This represents 20% of their overall energy spend. Going forwards, and in order to make this market successful, all stakeholders must come together. Suppliers need to work hard to be ready for deregulation and offer customers the benefits and level of service they will want. Sitting behind this, suppliers need to put technology and systems in place to address

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By ensuring they have all their data to hand they will be in the best possible position to negotiate the best deal issues such as dealing with supplies outside their area. Businesses clearly have a role to play too. Furthermore, they have it in their power to get on the front foot now. By ensuring they have all their data to hand they will be in the best possible position to negotiate the best deal. With around 21 wholesalers and somewhere in the region of a million customers the water industry in England is in for a major shake-up and it must be the customers who benefit the most from this. te utilyx.com

PAST WINNERS SAID: “Winning the Energy Award is a benchmark of the quality and impact of our product and our capabilities. We are very proud of it and it’s a big confidence boost to the whole team.” Adam Shanley, Marketing Manager, OxyMem “The Energy Awards is a prestigious event and we were exceptionally proud to win for a second time. The event is always great fun and we look forward to taking part again this year.” Ian White, Director, Alfa Energy

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PRODUCTS Control chiller corrosion and bacteria Although preventing corrosion and bacterial contamination in chilled water systems is vital in order to preserve operational integrity and efficiency, and avoid costly issues, few inhibitors offer comprehensive protection. Traditional sodium-nitrite corrosion inhibitors, for example, often provoke bio-fouling of system water. In response, Sentinel Commercial has introduced its X100 Inhibitor to the cooling market.

In the absence of effective water treatment, corrosion will almost certainly form in chilled water circuits simply because the circulating water or waterbased coolant is in contact with component metals. Corrosion can have a number of disastrous consequences for chilled water systems, from restricting heat transfer and degrading cooling efficiency, to causing heat exchanger leaks or complete loss of system integrity. Such problems can lead to unplanned downtime, emergency maintenance, repairs or replacements, as well as reduced system longevity,

Mega just got bigger with hot water cylinder Lucy Electric launched its client side 11kV Sabre switchboard arrangement with integrated G59 solution at the Energy Event 2015. The G59 solution is preassembled, allowing for simple on-site installation. It offers a number of options for different arrangements and protection relays, which customers can select, preassembly, to suit their needs. The solution consists of

70 October/November 2015

a Sabre VREa and a Busbar Connected Air Metering Unit with a mounted G59 protection cabinet. The Sabre VREa is available with both a 250A or 630A circuit breaker to suit the power output of the generating site. The G59 unit features additional terminals within the panel for remote operation of the circuit breaker, which can be enabled/disabled through a simple selector switch. lucyelectric.co.uk

increased energy consumption, poor product quality, and reduced productivity. Sodium nitrite-based inhibitors often give rise to bacterial contamination of chilled water systems since nitrites are a highly nutritional source for bacteria. Furthermore, conditions such as oxygenation, the presence of glycol and water loss can exacerbate biological contamination (as well as corrosion). Bacterial growth can result in complete component failure, impaired flow, poor heat transfer and blocked control valves to name but a few costly issues. Sentinel X100 Inhibitorâ&#x20AC;&#x2122;s blend of TripleTech anti-corrosion technology is nitrite-free. To maximise the effectiveness of Sentinel X100 Inhibitor, system cleaning should be performed before inhibitor dosing. Cleaning with a product such as Sentinel X400 will help restore flow and heat transfer, and remove any debris from the system. sentinelprotects.com

Cogenco integrates within the Veolia Group Veolia has announced its specialist combined heat and power company, Cogenco, will be fully integrating with the UK group and adopting the Veolia name. The move will enable the company to offer its customers a wider range of CHP-based low carbon energy solutions across all market sectors. While the name change reflects the closer integration of the group, the business will continue to provide customers with its expertise in developing, constructing and operating greener energy solutions using the latest CHP technology. It coincides with an expansion of the current product range and introduction of enhanced efficiency packaged CHP units with power outputs ranging from 50kWe to 4MWe, and will have the added benefit of incorporating the expertise from the other areas of the business. Veolia currently operates more than 600 CHP units. Steve Guttridge, managing

director of Cogenco, said: â&#x20AC;&#x153;Our CHP customers will benefit from a larger range of on-site energy solutions that can help them be more sustainable into the future. By adopting the Veolia brand we will now be able to extend our business of providing carbon-cutting highly efficient CHP solutions. This move will strengthen our capabilities and help us offer the environmental and fiscal benefits that modern CHP delivers to customer sites.â&#x20AC;? veolia.co.uk.

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Product & Services Directory Contact Harry Powell Tel 020 3751 7863 Mob 07557 109476

Plymouth University saves £50,000 on water Plymouth University has saved more than £50,000 in water consumption costs with the help of half-hourly data loggers from water and asset monitoring specialist HWM. “Half-hourly meters have brought us a whole new management regime, where we can interrogate consumption in a lot more depth,” said Paul Lumley, the University’s energy and environmental manager. “When you really want to interrogate how a building uses water, you need to have half-hourly data. It’s impossible to do otherwise.” Since 2011, HWM has installed COMLog GPRS data loggers at 21 sites in and around the campus. The

ENERGY METERING & MONITORING SYSTEMS

PUMPING EQUIPMENT AND CONTROLS

loggers transmit data twice a day to HWM’s web-hosted server, Datagate, which then distributes data to South West Water’s commercial division and others as part of the University’s utility management strategy. Aside from identifying potential leaks very quickly, Lumley pointed out that the COMLogs allow the university to monitor trends in specific buildings and alert staff to any unintended or wasteful use. “The information is paramount to effect behavioural change. I can think of two instances where I’ve relayed information to building users regarding large consumptions caused by equipment.” hwm-water.com

CALIBRATION SERVICES

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The British Beer & Pub Association (BBPA) has set ambitious targets for the brewing and pub industry to increase energy efficiency by 19% and reduce carbon emissions by 30% by 2020. It is also aiming to achieve an industry average of using less than four litres of water for each litre of beer produced, a reduction of 42% by 2020. Using steam to provide brewing processes such as wort boiling, pasteurisation, cleaning in place, sterilising in place and bottling and canning is a significant contributor to the overall energy bill in a brewery. In addition to these process requirements, steam is often required for heating systems. The Spirax Sarco white paper outlines the options

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Multipoint sensor calibration. Low measurement uncertainties. All manufacturers’ instruments. Rotronic purpose-built UKAS calibration laboratory. Fast turnaround times and competitive prices. available and explains the savings that can be achieved. Examples include switching from plant or filtered steam to clean steam, and improving systems to optimise the return of condensate to the boiler feedtank. It also includes case studies. For example, Westons Cider has cut its annual fuel costs by £44,000 per annum and has significantly reduced water consumption following the installation of a reverse osmosis water treatment system. spiraxsarco.com

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Product & Services Directory Contact Harry Powell Tel 020 3751 7863 Mob 07557 109476 AIR CONDITIONING

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October/November 2015 73

Q&A

Robin Hale The ESTA director answers questions on not ever answering questions in magazines, multi-lingualism and Akhenaten Who would you least like to share a lift with? Why? Anyone that has a streaming cold or the flu. Especially at this time of year, as I always seem to catch it – Lemsip Max Strength tablets are never very far away.

our everyday environment.

You’re God for the day. What’s the first thing you do? Sack my publicist. Religion has a lot to answer for but it’s not God’s doing. While miracles are great and as God for the day – poverty, war and the global effects of climate change could be resolved in an instant, we unfortunately live in a disposable, short-vision and short-term world. We have the answers, but we all need to become better than we are for future generations to inherit a more sustainable and peaceful place to live.

What irritates you the most in life? Not heeding the advice I’ve been given.

If you could travel back in time to a period in history, what would it be and why? A day-trip to see the seven wonders of the ancient world. To look in awe at the Hanging Gardens of Babylon and the short-lived Colossus of Rhodes.

What is the best piece of advice you’ve ever been given? Never to answer personal questions in the back of an industry magazine!

Shawshank Redemption What would you take to a desert island and why? Wilson. The American football. Seemed to keep Tom Hanks sane(ish). What’s your favourite film or book and why? Shawshank Redemption – A film you never tire of watching. If you could perpetuate a myth about yourself, what would it be? Have a fluency in at least four languages.

What would your super power be and why? Building on the myth of being fluent in at least four languages, it would be to have contagious Omni-lingualism, because a lot is lost in translation. What would you do with a million pounds? Sponsor a Nobel Prize for Energy Efficiency to acknowledge game-changing technologies and solutions in the continual pursuit of energy reduction.

Who or what are you enjoying listening to? Various albums streamed on Deezer from George Ezra to Hozier, easy listening music while I decorate the house on the weekends.

What’s your greatest extravagance? Holidays in Brazil to see the in-laws and explore such a diverse and wonderful country and culture.

What unsolved mystery would you like the answers to? To see what happened during Akhenaten’s reign, the Pharaoh that changed Egypt’s religious beliefs and commanded a vast empire. And what happened after it, to him, his wife Nefertiti and their son Tutankhamun.

If you were blessed with any talent, what would your dream job be and why? Other than Archbishop of Canterbury, to be a great innovator and inventor lke Elon Musk, Steve Jobs or James Dyson. To make a positive contribution affecting

74 October/November 2015

What should the energy users be doing to help itself in the current climate? In the main energy users know what needs to be done and can be done, but require the right support both externally from industry stakeholders and internally from the board. As an industry we need to provide greater support to end users through trusted technology and service providers. Where needed industry, should deliver better education into best practice energy management. It’s a tough economic climate and we should all help one another. What’s the best thing – work wise – that you did recently? ESTA’s Energy Efficiency Summit. Held recently at the Ricoh Arena in Coventry, the one-day conference and exhibition provided a great opportunity for like-minded energy professionals to network and with high quality debate and presentations to gain insight and best practice solutions into furthering the efficient use of energy. If you missed it, make sure you catch one of ESTA’s free-to-attend events in 2016. te

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!"#$%&$'()'$"*%+ to find out how much we could save for your business: Call:(89:;<':=>=?= Email:(@#A(BCB@)DB#@#&"E&"F GGGEB#@#&"E&"F *The Energy Live News Consultancy Awards 2015