theenergyst.com
12
False gods: Is energy as a service the panacea it claims to be?
August/September 2017
28
Ups and downs: Three firms outline their DSR experiences
56
Hot and cold: Let CHP compete fairly in the capacity market
“We need a better, more consistent set of policies for energy efficiency� p22
INSIDE THIS ISSUE
57 HVAC
Vilnis Vesma takes umbrage with Sabien Technologies’ article about EndoTherm in our April/May issue. We look at his objection and Sabien’s reply
34 Energy Storage There are many technologies that can provide storage capabilities and it is all about getting the right technology in the right place to do the right jobs
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28 Demand-side response
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How end users are unlocking flexibility and generating revenue
64
16
theen
ergyst
theen
ergyst
April/
May 20
17
Green ICT
Could virtual reality provide the answer to avoiding performance problems in data centres and support the next revolution, at the Edge?
12
20
Insight
Gas & electricity
4
August/September 2017
False gods: Is energy as a service the panacea it claims to be?
Shell is entering the UK industrial and commercial (I&C) power supply market to offer power supply directly to end users in Great Britain
Energy as a service (EaaS) has the potential to transform the energy market for business users. However, if it sounds to good to be true then the chances are it probably is
News & comment
theenergyst.com
12
28
Ups and downs: Three firms outline their DSR experiences
56
Hot and cold: Let CHP compete fairly in the capacity market
“We need a better, more consistent set of policies for energy efficiency” p22
14 Front cover
Gazprom highlights the vital need to interpret and use data for insight
Demand-side response
24
Industrial energy management 66
Insight
12
Energy storage
34
Water management
72
Policy & legislation
16
Lighting
50
Product news
74
Gas & electrcity
19
CHP & HVAC
54
Q&A
78
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20
A picture paints a thousand words but virtual reality will give you 10,000 words
(right)
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Obtaining finance for energy efficiency projects has always been an issue in the public sector. Salix Finance is able to help and highlights some of the successes it has achieved
The ban on all petrol and diesel vehicles by 2040 currently holds the potential for disruption or opportunity
water only (left) com pared with Endoth erm
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Finance
Policy & legislation
works –
August/September 2017
3
47
COMMENT
The fusion of energy management Editing The Energyst over the past couple of years it has become apparent that it is increasingly difficult to place articles in distinct sections. In this issue, for instance, we have a CHP articles about selling into the capacity market, batteries can be renewable energy or provide power for demand-side response. We have lighting stories that are about finance, procurement that looks at energy efficiency and flexibility that cuts across both of these. There are no longer simple supply and demand-only silos. Both have to be balanced to take benefits in a truly integrated energy management system. We have stopped publishing our annual guide Energy Procurement because it would focus so much on flexibility and efficiency that its name becomes a slight oddity in this interconnected market.
The Energyst Event has launched to reflect this profound change and to further the discussion on effective energy management in the modern world Energy firms are also seeing the market heading towards greater integration. Annalisa Bell, Eon sales and origination manager virtual power plant and flexibility unit, said: “I’d say it is probably moving in a direction where procurement, management and flexibility are starting to converge. I wouldn’t say it has necessarily converged completely but it seems like a natural direction to head in; there are synergies.”
Editor Tim McManan-Smith tim@energystmedia.com t: 020 3714 4450 m: 07818 574308
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Design and production Paul Lindsell production@energystmedia.com m: 07790 434813
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4 August/September 2017
British Gas’s Dylan Crompton thinks things are moving towards convergence: “Are procurement, management starting to converge? There is certainly a strong correlation between those data sets.” And it is not just energy suppliers saying it, end-users are too. M&S’ Maria Spyrou commented: “Is there recognition within the business that procurement and flexibility are on the path to convergence? Yes. Our energy buyers are well aware of it and are now looking at how to combine everything together.” The Energyst Event has launched to reflect this profound change and to further the discussion on effective energy management in the modern world. The core areas of procurement, efficiency and flexibility linked by data analytics and AMR will form the backbone of the event. The Energyst Event will take place at the Birmingham Motorcycle Museum on 17/18 April 2018. At a time when there is so much happening in the energy market, it brings a much-needed focus on energy alone; spanning efficiency, cost avoidance, revenue opportunities and effective procurement strategies and their interrelationship to equip energy professionals with the tools to combat rising costs.
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 publisher’s 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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NEWS & COMMENT
National Grid: Gas remains critical to low carbon future Gas will be “critical” to the energy system for a long time to come, believes National Grid director of UK system operator Cordi O’Hara. Meanwhile, without policy intervention, it will still be heating homes for decades to come. Speaking at the launch of its Future Energy Scenarios document, O’Hara nodded to the uncertainties and variables that feed into the system operator’s long-range planning. However, she said there remains a “long-term” role for gas to provide flexibility within an electricity system accommodating increasing penetration of renewables. That message was echoed by head of energy insights, Marcus Stewart. “Gas retains a significant role across all of our scenarios,”
There will need to be policy intervention to move people away from gas boilers, otherwise it won’t happen
he said. “In a world of change and uncertainty, gas still remains an intrinsic part of the energy system, both today and tomorrow.” The document outlines a wide range of scenarios for energy demand, penetration of different generation
technologies, storage and electric vehicles. Under all four projections, new gas plant is required in the next 15 years, though the document notes that economics, at least for large thermal plant, continue to be challenging.
Renewables investors expect ‘resurgence’ in new projects One of the UK’s largest solar investors has predicted a second wave of UK renewables deployment – potentially without subsidy. “The reduction in the cost of deploying proven renewables infrastructure continues apace. This may make unsubsidised renewables generation a reality and points to a likely resurgence in new developments in the years ahead, both to replace fossil-fuelled generation as well as for repowering maturing ‘first generation’ renewables sites,” according to Renewables Infrastructure Group (TRIG) chair Helen Mahey. The firm commissioned the 22.6MW Freasdail wind farm in Kintyre, Scotland, during the first half of 2017, its first construction project in the wind sector. It acquired almost 130MW of solar farm acquisitions during the period, as well as the
6 August/September 2017
Distributed generation also continues to grow across all scenarios, increasing market complexity but also “creating opportunity” according to Stewart, provided industry can adapt. He added that regulatory regimes must be fit for purpose “and not stifle innovation”. “Whole system thinking and uptake of smart technologies” will be critical to maximising system and consumer value, he said. Jan Mather, energy supply and demand manager, also outlined the need for increased incentives for consumers in terms of lower carbon heat. “There will need to be policy intervention to move people away from gas boilers,” she said, “otherwise it won’t happen.”
Freasdail wind farm is TRIG’s first construction project in the wind sector
35MW Port of Tyne battery storage project from RES, with whom it has a close relationship. Posting an increase in pre-tax profits of 63% for the first half (£31.3m, from £19.2m), Mahey outlined opportunity for further investment in wind, potentially offshore as well as onshore –and potentially with a view to construction – and batteries. The firm is also examining some 500MW of potential solar deals and expects between 1GW and 2GW of UK solar plant to change hands in the coming 12-18 months. “Public and political support for clean electricity in the UK and Europe remains strong, underlined by government initiatives designed to provide momentum for the switch to electric vehicles and to incentivise better demand-side response,” said Mahey. “The broader market picture looks promising.”
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Energy procurement:
Energy storage to be reclassified in Electricity Act Energy storage is to be reclassified within the Electricity Act to address issues including double charging. The move is among a raft of government proposals designed to facilitate the shift towards a smart energy system, or smart grid. As part of those plans, distribution network operators will not be allowed to own storage, as government and regulator feel that would distort market outcomes. Meanwhile, the Department for Business, Energy and Industrial Strategy said it will also set out how storage can be collocated with renewable generation without jeopardising existing subsidies for such plant. Beis said it will also commission a feasibility study to look at local flexibility markets and how these might work,
potentially, in some cases, without DNOs needing to be involved in providing price signals. The paper also suggests mandatory half hourly metering and settlement down to household level is on the cards, although the timing on that decision has been pushed back. Such a move would fire the starting pistol for domestic demand-side response markets and Beis plans to launch a domestic DSR competition in autumn 2017. To open up the domestic market will require responsive household goods. Beis said it would drive industry to collaborate with the EU and US on standards and interoperability for smart devices, as well as setting standards for electric vehicle charge points.
Government to change capacity market rules for batteries and DSR Battery storage operators bidding into future capacity market auctions will have to carefully consider new derating factors proposed by government. The Department for Business, Energy and Industrial Strategy has proposed rule changes to take into account batteries’ ability to provide power over several hours. Some 6% of the contracts (3.2GW) awarded in the December 16 T-4 auction for delivery from 2020 were awarded to storage providers, with around 500MW to new build battery storage projects. The derating factor applied to all of those projects was 96%, the same as pumped hydro. Scottish Power, which owns pumped hydro assets, proposed the changes, arguing that derating factor was inappropriate for short duration assets. Beis agrees, stating the market was designed before batteries started
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to emerge in volume, and plans to split batteries into categories based on duration of full power output. It said there would be transitional arrangements for the upcoming auctions. Meanwhile, unproven DSR will have to complete tests earlier to avoid risk of last minute drop outs, according to Beis. Currently, tests must be completed the autumn prior to winter delivery. Instead, they will have to ready be a year ahead of time so that any capacity that does not materialise can be replaced in the T-1 year ahead auction. The department has “no wish to cut across the commercial development of this important resource, but at the same time would like to see clearer, earlier evidence of the delivery progress of this capacity, so that it can make a robust assessment in time to replace any lost capacity at the point of the T-1 auctions”.
is disruption the new normal? A long-term energy procurement strategy can save you money, advises Mike Chessum, sales director, Industrial & Commercial Energy and Services at British Gas Business If there’s one watchword for business trends today, it’s disruption. We all know the stories: Amazon changing shopping habits and then, with drone deliveries, the logistics industry; Uber and AirBnB revolutionising how we book transport and accommodation; on-demand viewing replacing scheduled television. Technology changes everything: how we shop, travel, even how we relax. Tech disrupts it all. The energy industry is not immune. Both suppliers and consumers are encountering more innovative ways to manage demand. Artificial intelligence predicts forward trends. Smart assets respond to spot market price signals through dynamic demand. Decentralised plant generates and stores power on-site with power purchase agreements used to procure the residual requirement at long-term fixed wholesale costs. This change, however, comes with complications. Good energy procurement is no longer about the lowest unit price but what other capabilities a supplier can offer. Can they provide a bespoke trading strategy to suit your business’s procurement risk appetite? Can they support your energy efficiency objectives, for example through energy performance contracts? Can they help your decarbonisation targets by sourcing energy from renewable and low carbon sources? Most importantly, can they keep it simple so it can be understood? Savvy businesses know that navigating through disruptive changes requires demonstrable long-term value which can be recognised by stakeholders ranging from operations and sustainability to company shareholders. At the same time, any contract must deliver to financial expectations today.
The quickest way to action this ambition is to form longterm partnerships. A strong relationship which drives continual improvement. Effective contract management holds the supplier to account but creates a spirit of teamwork where supplier and customer learn from and work with each other. Collaboration, not confrontation draws out best value. Instead of looking purely at unit price or supplier management fee where cost opportunities are minimal, procurement leaders develop a long-term budget and decarbonisation strategy based on data-led efficiency programmes, smart energy management and optimal trading. A supplier like British Gas Business brings knowledge and experience in buying, managing and generating energy. While combining different procurement streams can be more complicated, those customers who engage with regular conversations about value, and work together with a likeminded supplier to identify and action energy saving opportunities, quickly reap the rewards. The conversation is moving away from short-term transactional arrangements but not quickly enough. Effective procurement and ongoing supplier relationship management doesn’t just save money, they provide a valuable, maintainable boost to the bottom line. Energy purchasing offers a perfect opportunity to demonstrate how indispensable such skills are. At British Gas Business, we want to develop the skill-set of tomorrow so as businesses become more astute, we welcome the conversation. Are you ready to put effective energy procurement on the cost-saving agenda? To find out how British Gas Business can help save you money through a longterm energy procurement strategy, data insights or operational flexibility, call us on 0845 070 3720, or visit britishgas.co.uk/business
NEWS & COMMENT
Ofgem paves way for major changes to energy system rules and charges
Big energy firms see profits plunge
Energy regulator Ofgem has outlined a major programme of work that could fundamentally alter the way the energy market works. The programme is primarily focused on electricity and aims to set out rules of engagement in a smarter power system. That system will be more reliant on flexibility than baseload, instead, says Ofgem, continuously matching supply and demand. While setting out its intentions, the regulator has also launched a significant review of how the power network is paid for. While the regulator has recently cut Triad export payments, this review of ‘sunk cost’ recovery will be
Fierce competition and threat of political intervention have hit large utilities’ profits hard. British Gas made no money from its business-to-business energy supply division in the first half of this year. The firm shed 30,000 UK business customers and posted a profit of £0 compared with £31m the previous year. The company said it expected to return to profit for the full year and will focus activities on higher value small and mediumsized companies (SMEs), which are generally more profitable for suppliers than large firms. However, British Gas has stressed that its focus on SMEs is not at the expense of its industrial and commercial (I&C) strategy (see p19). Eon’s UK power sales fell 1.5 billion kilowatt hours, or 8%, in the first half of 2017. The firm warned that Brexit, its impact on Sterling and ‘interventionist’ energy policy would take their toll on UK operations. Power sales to small and medium enterprises and households fell 12%. Power sales to the I&C market dipped by 1%. Reductions in gas sales were more marked. Sales to SMEs and households fell 17%. Sales to the I&C market fell 13%. Total volumes were down 4.6 billion kWh, 16%. Overall, UK sales fell 15% or !633m, with profit down 20% to !233m. Npower posted a first half operating loss amid “fierce” retail competition. The company said risk of political intervention looms large and may yet affect its forecasts. “The situation in the UK retail business remains very tense due to the fierce competition and political pressure,” said parent company Innogy in a trading statement.
EirGrid chief to head up Grid’s SO function EirGrid chief executive Fintan Slye will join National Grid to head up its system operator function at the year end, calling time on a decade at Ireland’s state-owned grid operator, five years as CEO. National Grid’s previous system operator director, Cordi O’Hara, has taken a senior role at the firm’s US operation. EirGrid said it is hunting a successor for Slye. “On behalf of the board I would like to thank Fintan for his leadership and commitment to the success of the EirGrid Group,” said EirGrid chairman John O’Connor. Cordi O’Hara has switched to National Grid North America as jurisdictional president and COO for Massachusetts.
8 August/September 2017
Ofgem’s programme of work is primarily focused on electricity
much broader than that of embedded benefits – and will probably take much longer. Ofgem says it is looking at changes to network charges because more businesses are taking actions to avoid them, meaning that those that do not or cannot take evasive action have to pay a greater share of the bill. The outcome may well impact businesses in terms
of how much they pay to use power, and when they pay more or less to do so. Incentives for generation both in front and behind the meter, may be equally affected, although storage is not within scope. However, Balancing Services Use of System (BSUoS) charges, which recover the cost of day-to-day operation of the transmission system, will be reviewed.
UK Power Networks tenders for 35MW of DSR UK Power Networks has begun a tender process for up to 35.4MW of demandside response for delivery starting in January. Following an expressions of interest call, the network operator will invite firms to tender in early October. UK Power Networks seeks assets that can increase exports (generate) or reduce imports (consume less) at times of high electricity demand. It will award both availability and utilisation payments and has specific volume requirements in 10 specific locations. The minimum clip size for providers is 500kW of flexibility, which can be aggregated across multiple sites, in order to manage constraint issues in Suffolk, London and the South East. However, the firm said it
will “consider contracting directly with smaller sized resources depending on the characteristics of flexibility in each area”. The DNO outlines a need for 37.6MW of flexibility in 2018/19, more than 40MW the following year and a further 30MW in 2020/21. Delivery is required for between two hours and five hours to manage evening peaks in some locations, and morning and evening peaks in others. l UK Power Networks has outlined plans to shift its business from a distribution network operator (DNO) to a smarter, integrated distribution system operator (DSO). The firm has outlined several potential approaches and seeks views from industry on how to proceed.
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Sheffield University launches UK three-day solar energy generation forecasting tool Sheffield Solar, based in the Department of Physics at the University of Sheffield, has launched a service which provides forecasts for energy generation from photovoltaic (PV) systems in the UK for up to 72 hours ahead. The research unit is making the tool available for free for a trial period but seeks feedback from traders and generators in order to refine the product. The service builds on two years’ work with National Grid and is intended to help traders, generators and grid operators balance and optimise the system and their portfolios. By giving them a better picture of how much power is likely to be generated from the UK’s 12GW of solar PV capacity, total system costs can be reduced. That could result in lower costs for market actors but also lower electricity bills for some 30
Service aims to provide a better picture of how much power is likely to be generated from solar PV
million UK households. Better data enables more accurate forecasting. This can help generators and traders reduce the penalties they face for getting their supply/demand balance wrong, costs which are passed onto customers. It could also enable National Grid to spend less on procuring balancing services – paying people to
17% of UK solar capacity expected to be sold within 18 months One of the UK’s largest solar investors believes up to 2GW of the UK’s 12GW of solar generation will change hands in the next 12-18 months. The Foresight Group currently owns some 900MW of large-scale solar capacity, most of it in the UK. The firm is keen to add to its portfolio and outlined significant activity in the UK’s secondary solar market in the next year. Posting half-year results, the company said it was reviewing a pipeline of 500MW of potential investment and that it “expects that between 1 and 2GW of projects will be sold in the secondary market in the coming 12-18 months”.
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“As the solar industry becomes increasingly competitive, acquiring assets at attractive prices is becoming more challenging,” said chairman Alexander Ohlsson. “However, Foresight Solar Fund Limited ... sees significant opportunities in the UK secondary solar market as well as other developed overseas countries with stable currencies.” One of Foresight’s largest investors is BlackRock, which also plans significant acquisition of large-scale solar projects. The asset management giant has launched a joint venture with Lightsource, called Kingfisher, which plans to create a £1bn, 1GW UK solar portfolio by 2020.
turn on generators or paying them to turn off – which means lower bills all round. National Grid already uses Sheffield’s real time PV forecasting tool but the new service allows it, and others, to plan ahead. Updated frequently, it combines weather forecast data with the data from live generating systems to provide a forecast for the next 72 hours.
The service is currently being trialled on the University of Sheffield’s Sheffield Solar website. The group has plans to develop the service with researchers initially releasing a half hourly forecast, followed by a regional forecast and finally it intends to provide forecasts for individual systems around the UK. Business development manager Aldous Everard told The Energyst that the service may ultimately go beyond half hourly data and into more granular detail, but that Sheffield Solar was keen to receive feedback from users. “We’re interested in user responses and to find out what traders want so we can further develop the product,” he said. “We’re looking for answers as well.” For further information see solar.sheffield.ac.uk
Regulator raps networks over connections failures Ofgem plans to claw back revenue from distribution network operators over perceived grid connections failures. The regulator is consulting around key issues raised by stakeholders and has mooted penalties ranging from £600,000 to £4.6m for each DNO. DNOs face penalties for inadequate stakeholder engagement with customers that want to connect to the network or plan longer-term programmes of work. Some of the networks may be penalised because customers say they appear not to have a single point of contact for connections, making a difficult process more difficult, and for generally taking too long to provide a quote. Some have been accused of being ‘obstructive’. While DNOs say they are taking steps to improve connections processes, it is often cited by businesses surveyed by The Energyst, as one of the biggest hassle factors in connecting assets to provide demand-side response. However, some DNOs also appear to have been swamped with ‘highly speculative’ connections applications in recent months as investors rush to exploit strategic locations that may accommodate assets such as batteries. Ofgem outlines specific incidences of failure within its consultation document, inviting responses by 18 September.
August/September 2017
9
NEWS & COMMENT
Gas picks up coal’s share of generation as renewables output remains flat Power generated from coal fell 60% in 2016 compared with the previous year, according to latest government figures, with gas picking up the slack. While 5.7GW of new renewable capacity came on stream during the year, output remained flat as average wind speeds dipped below the favourable conditions recorded in 2015, and reduced rainfall affected hydro. A record increase in generation from solar PV (+38%) partially offset those falls, but not fully, due its low load factor (approximately half that of onshore wind). Overall, renewables contributed 24.5% to power generation in 2016, fractionally less than in 2015 (24.6%). Gas use for power generation increased 46%, with its overall share of the power generation mix standing at 42%, up from 29% the previous year. Combined cycle gas turbine (CCGT) load factors stood at almost 50% over the year. The government said the major driver for the switch from coal to gas was the doubling of the carbon price floor from £9 to £18 per tonne of CO2. Nuclear generation increased 2% year-on-year due to fewer outages. Generation from bio energy increased 3%, largely due to the conversion of a third unit to biomass at the Drax power station. Maximum demand for winter 2016/17 occurred between 17:30 and 18:00 on 26 January 2017 and hit 52,909MW, slightly higher (+0.3%) than the previous year. Digest of United Kingdom Energy Statistics (Dukes) data suggests that equates to 77% of the capacity of major power producers, a 4 percentage point increase on 2015/2016.
10 August/September 2017
Figure 1: Share of electricity generated by fuel Other fuels 2.8%
Coal 22%
Renewables 24.6%
Other fuels 9%
Coal 9%
Renewables 24.5%
2015
2016
Nuclear 21%
Gas 29%
Nuclear 21%
Gas 42%
Figure 2: Electricity demand by sector 2016 Chemicals 17% Domestic 28%
Commercial 21%
Engineering 18%
Losses 7% Fuel industries 7%
Paper 17%
Industry 28%
Other Industries 38%
Agriculture 1% Public administration 6%
Transport 1%
PV partially offset those falls, but not fully, due its low load factor (around half that of onshore wind
Food 12%
Iron and steel 3% Total demand: 365.7 TWh Industry demand: 91.8 TWh Source: Dukes
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Make better use of your energy, with embedded generation and demand-side response
Working with electricity supplier Haven Power and demand response aggregator KiWi Power, Colchester Hospital University NHS Foundation Trust earns around £200,000 annually from power generation. The Trust’s Estates department has also reduced expenditure through improved energy management. To enjoy similar benefits, organisations need a flexible approach to energy generation, consumption and cost reduction – as do their energy partners. However, embedded generation and demand-side response (DSR) are complex and having access to the relevant expertise can help businesses make the most of the opportunities the schemes present. What is embedded generation? Embedded generation, also known as distributed generation, is a term used for an electricity generator connected to the Distribution Network rather than the Transmission Network. Organisations can use generation technologies such as solar, wind, hydro and biomass, as well as non-renewables. Together, companies and their
energy partners can establish that the potential income from generation outweighs the capital investment and ongoing equipment costs, and decide how to manage the energy produced: 1) Receive payments for electricity generation via a Power Purchasing Agreement (PPA) with a supplier such as Haven Power, at either an agreed or variable rate per unit. This option can offer the generator a variety of savings related to Use of System charges including Generator Distribution (GDUoS) and Balancing Services (BSUoS). 2) Join the Feed-in Tariff (FiT) scheme, a government programme promoting smallscale renewable or low-carbon generation technologies. FiT licensees like Haven Power pay generators for the electricity they produce (including the power they use themselves), at rates in line with inflation. 3) Decide not to export yet, but retain the option to do so on demand. This is viable if the generator can balance its costs against the income from supplying back-up energy to National Grid, via a number of
demand response programmes. Colchester Hospital University NHS Foundation Trust’s Estates department currently deploys a combination of PPAs with Haven Power and various DSR services with KiWi Power. When it was time for the Estates department to tender the Trust’s current electricity contract, the team worked with Haven Power to find additional value and flexibility in the standard terms. For example, the supplier now provides a daily triad report between November and February – with the extra benefit of within-day updates where necessary. This helps inform the Estates department’s energy purchasing decisions and offers an opportunity to minimise or avoid consumption in high-cost periods. At the same time, KiWi Power helps the Estates department to make the most of the Trust’s five generation assets that are spread across the sites. The aggregator designed a bespoke solution that allowed it to control the generators remotely using real-time metering hardware and a combination of existing and new control systems. KiWi Power also
wirelessly collects the meter’s data reports and sends them to National Grid, while ensuring the Estates department receives a notification whenever a demand response event occurs. Maximising the benefits To help simplify the complexity surrounding DSR and embedded generation, and amplify the benefits of both, organisations can work alongside their energy partners. For Colchester Hospital University NHS Foundation Trust, this meant building upon its existing relationships with leading demand response aggregator KiWi Power and agile supplier Haven Power. By working in collaboration with KiWi Power and Haven Power, the Estates department at the Trust is able to maximise all the available demand flexibility revenues and savings. This ensures it remains a forward thinking and innovative energy user. For more information about embedded generation and DSR, please get in touch with Haven Power, quoting reference HP251. 01473 707755 contact.us@havenpower.com www.havenpower.com
INSIGHT
Beware of ‘new gods’ bearing gifts Energy as a service (EaaS) has the potential to transform the energy market for business users. However, as James Ferguson, CEO of AMR analytics firm kWIQly, points out, if it sounds to good to be true then it probably is
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he reputable Navigant Research reveals that the annual global market for the deployment of I&C energy as a service (EaaS) is expected to reach $221.1bn by 2026. Obviously big numbers sell reports to investors seeking to catch the next wave of planetary-scale investment opportunity. However, an energy manager (who has little time for idle speculation) has a personal perspective. What EaaS means to me is determined by this: is it a wave of opportunity, a threatening tsunami of change or someone chucking rocks in my pond to make ripples? The opportunity for EaaS
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investors arises through a problem with how energy is seen: the crux of the matter is where utilities are viewed as a necessary and generally cheap evil. A few of the reasons are: • Don’t care – it’s not enough to worry about • Couldn’t care – it’s way too complex • For all I care – too busy trying to turn a profit The flip side to corporate social responsibility is a wish to be distanced from responsibilities (the repercussions of choices) including: ageing infrastructure, demand growth, climate change, carbon-based
power stations, fear of nuclear (skills-shortages), renewable technologies changing grid infrastructure requirements, bots and AI based trading, the IoT and a whole new sea of data (much of which is pretty unreliable). EaaS may be shorthand for ‘somebody else’s problem’. It is seductive. However, a word to the wise: prefer proven partnerships to pretty propositions. If you (or your enterprise) find yourself adrift from the familiar and vulnerable, EaaS may seem rather too good to be true. Certainly it is introduced when many are fearful and want to believe in ‘new gods’, so if you hear: “Don’t worry, as
an all-wise provider we know just what is best for you and will always be there, fear not,” then be afraid – be very afraid! How should we see EaaS? Do new saviours really replace the need for energy managers and has so much really changed since the world of ‘Big Oil’? Here are some points to ponder: 1. Utilities offer a commodity ‘on-tap’. The key to commodity (and deregulated market pricing) is the idea of homogeneity. One kWh is the same as another kWh – they are indistinguishable. So low cost operations are key to competitiveness.
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control system lock-in?] and against which it is harder for others to compete [think TV subscriptions]. Note this is how markets solve the needs of average buyers – but it is not the best for the ill-informed buyer (they just love the docile ones). 3. EaaS comes in a world, where travel agents are replaced by online flight booking brokerages, where bricks and mortar banks are replaced by e-services, and where the cost of IoT data-handling and cloud infrastructures is tumbling. This means even less differentiation and more competition, so there is desparation.
“Do not trust the horse, Trojans. Whatever it is, I fear the Greeks even when they bring gifts” Virgil’s Aeneid, Book 2, 19 BC 2. To outperform a free market, a commodity provider must differentiate their offering (often a service and product bundling) so they can charge more and from which it is harder to disengage [have you forgotten proprietary
4. Suddenly, engagement with the client (no longer a ‘number’) is everything. Ideally they befriend and want your inside-leg measurement and responsibility for everything you need, produce, or rely on to get your job done – they call this anti-churn leverage, lock-in or stickness. It may be many things but it is not freedom, it is the sweet bliss of ignorance. 5. Now consider that techical change, IoT is coming (lots of clever little sensors talking to each other and collaborating in smart ways to serve your every whim). Do you want your solution determined by someone else? 6. Should you leave your destiny to someone who you honestly don’t know and can’t trust, who doesnt know your business as you do and
If you hear: ‘Don’t worry, as an all-wise provider we know just what is best for you and will always be there, fear not,’ then be afraid – be very afraid! who is also vulnerable to dramatic changes but who claims a magical knowledge of what is best for you? 7. A rational EaaS company should love you most if: • You don’t know what you really need • You don’t know how to get it • You don’t explore your options • You like stick to your knitting while you bury you head in the sand (these are tricky metaphors to acheive in ‘real-time’) Polyphemus (cyclops blinded by Odysseus) famously shouts for help from his fellow giants, saying that “Nobody” has hurt him – and is left unaided because Odysseus suckered him by acting friendly and calling himself ‘Nobody’. So when an EaaS provider claims to be your closest friend – remember many EaaS projected growth implies very fast marriages of convenience – you may wish you had a pre-nuptual contract.
What is energy as a service? EaaS can be defined as the management of one or more aspects of a customer’s energy portfolio — including strategy, programme management, energy supply, energy use and asset management — by applying new products, services, financing instruments and technology solutions. While in its early stages, the EaaS market consists of third-party vendors, utility services companies and potential business model disruptors deploying niche technical, financing or procurement solutions such as solar PV power purchase agreements, energy services performance contracts and deregulated electricity market retail brokerage services. As the EaaS market matures, it is expected to give rise to the outsourcing of energy portfolios and turnkey vendors equipped with a comprehensive set of technical, financing and deployment model options.
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What should I be doing ? Interestingly, the job of any self-respecting energy manager is to be lazy, that is to ensure that their organisation does as little as possible (but no less). To achieve the same, EaaS needs to know your needs intimately. Here is a thought experiment to help envisage the problem (it needs a little background): When £ billions spent on energy in our name are summed, fluctuations in pluses and minuses generally cancel out to make smooth predictable totals. However, the hidden underlying uncertainties represent waste. So we track how well our clients know what they need – and have been amazed – for example (using data from five majors), typical daily demand uncertainty for an individual supermarket exceeds ±20%. Now ask of yourself about the energy of each site you manage (individually, that is what accountability requires): a) What proportion is uppredictable (say one week in advance by hour of week given a reliable local outside weather forecast)? b) Of this, what is necessary, and what you do with it? c) Are you aware of alternatives that may be more effective (would you happily gve up your freedom to evaluate them)? e) Finally, are future operational plans set in stone? If you know the answer to these, can say yes and uncertainty is under say 30% and if you can communicate the above to an EaS provider and secure a sufficienctly flexible relationship (with penalties) then you might be able to benefit from a sophisticated service supply contract. Until then… yes, hard work and knowing the truth about your needs keeps your job safe until EaaS providers become eternal, omnipresent and omniscient regardless of their mythologies. te
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COVER STORY
Show me the numbers Phil Ivers, head of customer optimisation at Gazprom Energy, argues the case for more insightful information and data to help organisations improve their energy buying strategies
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hile many organisations may see energy as a simple commodity purchase, an increasing number are looking at their energy procurement choices with more scrutiny. For instance, the fact that energy prices have reached low price points recently has made many in this role question their need to keep a closer eye on the market and what might impact future changes and prices. It is not just the energy manager that needs access to information surrounding energy buying. Numerous stakeholders in the organisation, including procurement, finance, and the general workforce may require the energy manager to inform them on the impacts on this function. That way, they can understand how best to play an effective part in energy management. And of course, many of these professionals are already aware that energy isn’t a straightforward purchase for them – especially in organisations with high usage or complex billing. As the market is incredibly fast paced and can change on a regular and sudden basis, energy management professionals need to keep abreast of every possible impact, including new market trends and vital information that could secure them the best deal.
Japan’s Fukushima nuclear plant confirms how major international incidents can have a significant impact on the price of energy. As the plant was no longer providing energy to the market, a shortage took place that inevitably had an impact on prices. Of course, incidents with less of a direct link can also affect supply and therefore prices, including political events and conflicts. The cause and effect of things that might lead to a dramatic shift in energy resources and prices is wide ranging and makes the
role of energy procurement both more challenging and eventful than perhaps is generally perceived. An easily impaired view In truth, the variety of factors that can impact energy buying is so vast that it is difficult for energy managers to manually construct a view of them and their immediate and likely future impact. Often this results in unwieldy spreadsheets that are constantly needing to be updated to stay current. To name just a few of the impactful issues out there, consider the following:
Many impacts Cases such as the tsunami that led to the closure of
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change even by the minute, managing it can be a timeconsuming and difficult chore. Sifting through daily energy market reports from either energy suppliers or ICE price reports eats into the energy manager’s valuable time. And it’s easy to miss events that can have considerable impact or indeed offer an opportunity. So how can those responsible for energy enhance their position as a buyer and what information do they need to have at their disposal? Effective budgeting One of the key issues facing energy managers is being able to track how trends are impacting market prices and how it will affect the ability to stay within budget. Having to budget in such a volatile market is a key pain-point and unless you choose a
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fixed contract which provides budget certainty, energy price fluctuations mean that you can’t be sure about how much you’re paying from one week to the next. The ability to monitor and model price variances against a budget benchmark is becoming increasingly important to money-conscious energy managers. Understanding the level of potential exposure from market issues is also vital when reporting back to the business - for example, if the CFO wants to know the current energy price exposure at short notice. Cost reporting as a basis for strategic energy buying decisions is another critical area. Knowing the precise times to buy energy and the recommended volume based on future needs requires integrated analysis of market and internal data to model future requirements accurately. Energy bill validation is a further area that requires access to detailed and reliable information. When energy managers are dealing with complex internal recharging, it is often necessary to provide additional evidence of why costs are being cross-charged and the reasons why a business function, location, branch or department’s bills have spiked or decreased in value.
Checks and balances With many organisations using third parties to broker their energy deals and carry out ongoing management, one final growing need for energy market insight is trader performance benchmarking. Without it you have no way of checking that what’s purported to be a good deal actually is one and that your ongoing energy management is receiving the best possible service. Full accountability for energy decisions requires the person internally responsible for energy purchasing to be in a position to validate this. Clearly the primary challenge behind accessing relevant and timely energy data is its inherent complexity. While many energy suppliers provide regular market analyses and updates, customers are demanding more self-service access to facts and figures so that they have true, tailored and real-time visibility of the information they need. Only then can they do the complex modelling required to gain a true understanding of the impacts energy market changes will have. New technology Technological advances, however, could soon help to make the process less onerous. Energy market
tools such as Gazprom Energy’s recently launched InSight allow energy and procurement managers and other executives to view live energy prices, track trends, model future scenarios and produce vital reports without spending hours compiling spreadsheets. Moreover, platforms such as these can set budget alerts and triggers to provide a higher level of security of staying on target cost-wise. This level of access to data can provide procurement managers and other ‘energy stakeholders’ with bespoke reports, market indicators and pricing information instantly and all in one place. With the role of energy manager, it’s inevitable that you’ll be challenged by the need to access complex and extensive data on a frequent basis. The role is becoming more complex and challenging, and so the need to be able to interpret and use data for insight is a vital part of success. To request a demo of InSight, visit; gazprom-energy.co.uk/insight or email: epd@gazprom-energy.com
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15
POLICY & LEGISLATION
Car trouble ahead? Simon Sjenitzer, director of energy business development, WYG, and Phil McVan, managing director, CarbonBit, warn that the government’s ban on all petrol and diesel vehicles by 2040 currently holds the potential for business disruption or opportunity on a large scale
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he UK government has quietly announced a huge commitment to move away from internal combustion engines to adopt 100% new electric vehicles by 2040, and there is nothing particularly surprising in that. The automotive industry already has current and planned new electric models, although you can expect hybrid to remain a feature for the foreseeable. How could that possibly affect my business and what could possibly go wrong? The Department for Transport reports 36.7 million vehicles licenced in Great Britain, of which 30.5 million are cars, as of March 2016. New registrations ran at 916,000 in the first quarter of 2016 alone, the highest since records were kept, starting 2001. We can envisage growth of electric vehicles accelerating as
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If all the cars in the UK were electric, that would be 210GW of installed capacity (we currently have about 70GW) governmental incentives (and penalties) are put in place to help us make the change. Electric vehicle charge points are normally 3, 7, 22 or even 50kW, with 7kW being the typical size. Fast chargers can be 50kW as we strive to grab as much boost as we can while on that service station coffee break. Typically, electric cars are charged at home and then
‘topped up’ almost like a phone as we move around during our busy day. So far, so good. There is nothing much to worry about, until you wonder where these charge points are and how much power they will need. Well, if all 30 million cars were electric, needing 7kW of charge that would be… 210GW of installed capacity (we currently have about 70GW). So where is that going to come from? With diversity factors, we expect it won’t be anything like that demand, and, of course, with battery storage technology we should be able to charge cars at off peak rates. To scale this number, UK demand at time of writing is 23.88GW, with a power generation mix of nuclear 7.7GW, coal 7GW, wind 5GW and CCGT (gas) 4.5GW. This might then suggest we need a very substantial increase in generation capacity to meet this
forecasted increased demand. Renewable installed generation capacity in the UK is approaching 20GW although, typically, it may produce 10GW actual. However, its characteristics of distributed and intermittent generation is causing major headaches for National Grid. This situation has induced the capacity market, whereby keeping the lights on is managed through buying in both capacity and balancing services at substantial extra cost. The strike price for offshore wind under Contracts for Differences (CfD), required to underpin investor certainty, is reported as high as £140 MW for 20 years – expensive stuff compared to historic costs based on gas CCGT at around half that figure. Where are these additional costs to be recovered from? Everyone, of course. The massive increases in extra levied
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Corporate governance of these matters now becomes a key risk: the need to appraise and mitigate what may seem relatively small steps, and remote from day-today operations, but could begin to impact the businesses’ freedom to act
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charges for ‘pass through; costs have been added back to every kWh on our bills to recoup government incentives, such as Feed-in Tariff, Renewables Obligation, Contracts for Differences and Capacity Market. This has seen our energy bills change from 70% energy component to less than 50% and heading towards 30%. We find ourselves heading towards 70% now being essentially levies or, perhaps, green taxes. The other key factor in switching to electric vehicles will be the loss of tax revenues to the Treasury. Currently, the Treasury receives around £28bn per annum in Fuel Duty plus VAT revenues from wholesale energy. This could become a huge loss to the treasury. Perhaps, there needs to be other ways to recover this lost income. Maybe we could tax other forms of energy and recoup losses that way? We can now see substantial investment required in energy generation capacity, infrastructure to deliver power to already constrained local networks, returns on investment on renewables and the cost recovery from users through energy levies paying for much of these changes. Adding up all these changes, it is now beginning to look like it has potential for business disruption on a grand scale. Corporate governance of these matters now becomes a key risk: the need to appraise and mitigate what may seem relatively small steps, and remote from day to day operations, but could begin to impact the businesses’ freedom to act and courses of actions open. How organisations buy energy, generate and store, where possible, then use it efficiently to support the business process, has become an increasingly complex landscape. Decisions being made in boardrooms today will affect whether, in years to come, this revolution was seen as an opportunity wasted or realised. Which side are you on? te
POLICY & LEGISLATION
Energy firms must ‘wise up’ Ex-industry chiefs warn UK’s biggest energy companies to embrace rapidly changing market
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new report warns the Big Six energy suppliers they must change how they do business if they are to thrive in the future. The report, by international sustainability non-profit Forum for the Future and Friends Provident Foundation, draws together fresh insights from a group of six former utility company CEOs, energy ministers and a high-ranking civil servant on the rapid transformation of the UK energy system. Ahead of the report’s launch, contributors Volker Beckers, Joan MacNaughton and Ian Marchant wrote a joint open letter published in the Sunday Times, hailing “an exciting and very different future for energy in the UK”, but warning that to avoid stranded assets, the Big Six must now shift from centralised fossil fuel generation to focus on mainstreaming smart energy services and local renewables. The report highlights how forecasts for renewables and battery storage costs and deployment have been
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chronically underestimated, and reveals how the speed of the energy sector’s transformation has caught the industry off-guard, leaving the incumbents fighting for a place in the future market. Investors are warned that the old-world business model of large power stations and passive consumers is being rapidly undermined by a decentralised, renewable, digitised and people-led approach. Despite the rapidity of the transformation, the report also shows how there are still major challenges to overcome, such as decarbonising urban heating and electrifying transportation. The rise of the the prosumer Latest figures show the number of British homes, communities and businesses now generating their own renewable power has risen to more than 900,000, an increase of 12,000% on 2010, while the UK’s largest utility, Centrica, has lost 50% of its market value since 2013. The former energy company chiefs velieve that these changes
That means rapidly making decentralised, community and smart energy systems their core business, not innovation trials on the side are irreversaable and will fundamentally alter the market. Ian Marchant, chief executive of SSE from 2002-13, said: “There is now a ‘prosumer’ revolution, where ordinary people and businesses are both producing more energy, with more and more households and communities becoming generators, actively creating their future energy system.” Volker Beckers, CEO of RWE npower from 201012, suggested: “The future energy company will be a
service company utilising the benefits of digitisation.” Steve Holliday, UK executive director of National Grid from 2007-16, added: “Energy policy can either speed up or slow down the rise of renewables, storage and electrification of heat and transport, but it cannot stop it.” Will Dawson, associate director for energy and climate at Forum for the Future and the lead author of the report, said it was now time for the incumbents to “accept and embrace the revolution” and ensure that it betters the lives of everyone by creating jobs, lowering bills, cleaning up the air and safeguarding the climate. “It’s important that the large energy companies that have dominated for so long are playing their part to the full so we don’t lose the expertise and valuable assets they have built up,” he said. “That means rapidly making decentralised, community and smart energy systems their core business, not innovation trials on the side.” Colin Baines, investment engagement manager at Friends Provident Foundation, which commissioned the report, said it was increasingly clear that the Big Six needed to develop new more resilient business models if they were to survive the ”3D energy transition” of decarbonisation, decentralisation and democratisation. “We want to see a managed and just transition that reduces the risk of stranded assets and shocks to both the economy and communities.” te The report is available at tinyurl.com/y6w898xg
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GAS & ELECTRICITY
Not retrenching from I&C, worst of billing pain ‘over’ British Gas says it remains highly focused on the industrial and commercial energy market despite suggestions to the contrary. The company also believes it is finally emerging from the ‘painful” billing system upgrade that soured relationships
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ritish Gas’ parent company Centrica stated in interim results in early August that it would focus retention activities on higher value SME customers as B2B energy supply profits collapsed. However, Dylan Crompton, head of corporate sales for I&C customers at British Gas Business, said a renewed SME focus is not to the detriment of its I&C business. “We employ over 400 people to work on large I&C accounts and it accounts for in the region of £1bn a year [of billings] across 11,000 customers. So it is not a market that we are retrenching from in any way,” he told The Energyst. On the contrary, the firm is “highly focused” on strengthening relationships with brokers, which buy energy on behalf of the bulk of the I&C market. Management fees ‘low as possible’ Crompton said those relationships, as well as direct relationships with customers, focus increasingly on smarter consumption as opposed to eking out percentage gains on procurement. “Some procurement remains very traditional: a tender every two or three years where the lowest price wins,” said Crompton. “But customers are starting to recognise that management fees are probably as low as
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they can be. So to attack the energy cost base, we have to work in partnership to avoid policy and noncommodity costs.” Crompton estimates around 25-30% of I&C customers now take that approach. But that suggests around three quarters of the UK’s largest energy consumers are yet to recognise that management, procurement and flexibility are beginning to converge. “There is a lot of correlation between those three data sets, and that is well understood by some [I&C clients]” said Crompton. “But the biggest challenge we face is to engage with the rest of the market. “Many I&Cs still buy on a fixed price contract [versus contracts where charges can be avoided], so cannot take those strategic decisions [around consumption and cost avoidance],” Crompton added. “Energy just seen as a fixed cost that can’t be influenced. But is is not as fixed as you think it is.” Flexibility gains While there are incoming changes to avoidable charges such as network red bands (DUoS) and Triad, Crompton believes businesses that take an agile approach to flexible consumption are primed to avoid whatever replacement schemes emerge to recoup sunk network costs. “[Policy costs and network charges] largely fall on
There is a lot of correlation between procurement, management and flexibility. Some clients understand that Dylan Crompton, British Gas Business
I&C customers. If you have flexibility within your flexible consumption arrangements, you can act when those charges are replaced by different mechanisms and change strategy accordingly.” That calls for an ‘always on’ approach to management and procurement, said Crompton, who urged firms to fully harness energy data, and for individuals to take responsibility for driving energy strategy. “Somebody has to define that strategy and how it fits into business operations. People make businesses agile,” said Crompton. “There are different solutions for different organisations and we can help deliver them. But the business has to define the mechanism by which they participate.” While Centrica’s interims cited ongoing impact of its billing system upgrade, Crompton believes there is light at the end of the tunnel. “We can’t shy away from the pain that we have gone through and are very grateful to the customers that stuck with us through that period” said Crompton. “We want to improve further but it genuinely feels like we are out of the back end of that now – and the billing performance is greater than what we had,” he added. “Now the conversations are around working together to unlocking savings. To me, that suggests customers see that the worst is behind us.” te
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GAS & ELECTRICITY
Drax eyes B2B market share Owner of Haven and Opus energy retail brands rules out entering domestic market to focus on higher margin business supply
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rax, owner of the UK’s largest power station, sees further growth in energy retail and plans to take market share from incumbent business-to-business suppliers. However, it has ruled out entering the politically charged domestic retail market. Meanwhile, in its generation business, according to firsthalf results, earnings growth continues from security of supply and ancillary services contracts as opposed to purely merchant revenues. Retail In retail, the firm is making most margin from the small and medium enterprise (SME) market, a result of its acquisition of Opus Energy last year. Meanwhile, Haven Power, which focuses
Energy at attractive margins and improving profitability at Haven Power,” said CEO Dorothy Thompson. While the likes of Vattenfall are eying both business and domestic retail markets, Thompson, noting potential government intervention on standard variable tariffs, said “our retail focus remains on the B2B market”. Thompson: ‘Our retail focus remains on the B2B market’
on larger businesses, is no longer loss making. While foreign utilities appear to be keen to enter the UK energy retail market, Drax is confident that it has acquired the scale and operational efficiency to take market share from existing players. “We expect to deliver continued growth at Opus
Shell makes power play Fossil giant Shell is entering the UK industrial and commercial (I&C) power supply market. “The decision to offer power supply directly to end users in Great Britain’s industrial and commercial sector reinforces our strategy to boost our position in Europe’s electricity market,” said Jonathan McCloy, general manager North West Europe, Shell Energy Europe. “In addition to supplying Shell’s assets in Great Britain, we intend to
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supply power to other large industrial complexes from early next year.” The firm has been active in power trading and wholesale markets in Great Britain for several years and said it will continue to provide wholesale gas and power to existing independent energy retail counterparties. Shell’s move follows that of Vattenfall into the industrial and commercial markets, where some incumbents are struggling to turn a profit (see news, p8).
Generation and earnings The H1 report shows earnings up 72% to £121m before interest, taxes, deductions and amortisation (ebitda) but a loss of £83m once some of those items, plus exchange rates, are factored in. “We estimate that we produced 17% of the UK’s renewable electricity” in the first six months of the year, stated Thompson. That output came from three of
the power station’s six units. Drax has run trials to see if a fourth unit could be converted to 100% biomass but will return it to coal fuel for the winter. As well as Roc and CfD support for its biomass generation, the company has capacity market agreements for coal generation. Capacity payments worth £80m are secured until 2021, said the firm. The company aims to build four new rapid response gas plants, two of which should be ready for the February 2018 capacity market auction, plus two for the following year. Thompson said it has also “identified potentially attractive options to repurpose our remaining coal assets”. At least one of these could be converted to gas, said the firm. te
Dave Cockshott leaves Inenco for SmartestEnergy Dave Cockshott has swapped Inenco for SmartestEnergy. From November, the former Npower director will take on the newly created role of chief commercial officer at Smartest, with responsibility for all customer groups at the firm. Announcing the hire, Robert Groves, CEO of SmartestEnergy, said: “This is a critical role for SmartestEnergy and Dave brings the commercial leadership that we will need in an increasingly competitive and complex market. I’m sure he will have a big impact on our business.”
Cockshott: brings commercial leadership to SmartestEnergy
Cockshott said Smartest has been “at the forefront of changes across the industry” and was “really looking forward to starting on this next challenge”. te
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GAS & ELECTRICITY
Prioritise energy efficiency Energy efficiency remains the ‘poor child’ of energy policy. Policymakers should listen carefully to those that know what they are talkng about, says Energy Institute. Brendan Coyne reports
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nergy efficiency should be prioritised and supported by government, according to a comprehensive survey of Energy Institute (EI) members. Yet it remains the “poor child” of energy policy, according to institute vicepresident and former National Grid CEO Steve Holliday. Policymakers should also listen carefully to industry, “those who understand how policies will be delivered on the ground” when addressing the energy efficiency void, said Professor Jim Skea, EI president. Prioritise this The institute polls members every year to form a snapshot of energy challenges. Asked what measures the UK should prioritise in the shift towards a low carbon economy, 64% of respondents answered ‘supporting energy efficiency’. This was around double the level of respondents (34%) that answered ‘support for nuclear energy’. Holliday lauded the success of government policies in
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decarbonising the power sector and incentivising renewables. That same approach should now be applied to energy efficiency. “Now is the time to readjust,” he said. “We need a better, more consistent set of policies for energy efficiency. Whichever box you want to focus on – security, emissions, affordability – energy efficiency ticks it. Energy efficiency is probably the easiest [element] to do well, but there is not enough policy work being done.” Outlining the report’s key findings, EI members also want the vast majority of EU energy laws “lifted and shifted into UK legislation”, said Holliday, “although opinion is divided on the EU ETS and State Aid.” Perhaps related to the State Aid question, EI members, while generally positive about the outcomes delivered by Energy Market Reform (EMR), were less convinced about the success of the capacity market. Post-Brexit, it may be that State Aid is no
Whichever box you want to focus on – security, emissions, affordability – energy efficiency ticks it Steve Holliday
longer a consideration, creating an opportunity to refine support for specific generation technologies. Stability matters However, stability in the transition period is critical, according to Skea. “Stable, long-term policy comes up every year as key message [from members],” he said. “But the Brexit vote, bringing with it increased uncertainties around energy policy, brings that into sharp
focus. Members told us they want a smooth transition of energy and climate change policies as we move through the Brexit target.” Budget blown? In the long-term, some 77% of those polled think the UK will miss the fifth Carbon budget target, and Skea called on government to “urgently” release the longwaited Clean Growth Plan. In the short-term, most respondents (72%) believe the UK faces “moderate” electricity price rises in 2017 driven by renewables and network costs. A significant minority (44%) expect gas prices to rise by up to 5%, with supplier costs “seen to have a significantly greater impact than in previous years” due to commodity prices and Sterling fluctuations. te The report provides an informed snapshot of the state of the energy market and the elements that should prioritised by policymakers. Download it at: knowledge. energyinst.org/barometer
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The public sector should team up
Public sector finances are always stretched, so a key aim is to balance competitive prices while not sacrificing service levels. A Professional Buying Organisations (PBO) Framework Agreement may be the solution. Sally-ann Kempin, Total Gas & Power’s national account manager – public sector, explains.
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overnment funding cuts have seen many energy posts removed or merged. Combined with a lack of internal resource to focus on the more complex and specialist procurement categories such as energy, some public sector organisations are being forced to take a good, long look at their purchasing strategies and to rethink their approach. Total Gas & Power (TGP) has been supplying gas and electricity to the UK’s Public Sector since 1987. Our flexible and transparent ethos towards flexible energy procurement has helped to design and tailor bespoke products suited to meet the specific needs of the Public Sector. We are currently the sole supplier on six awarded Framework Agreements, four gas and two power, which have been awarded by four PBOs. Our bespoke Public Sector team manage these contracts directly with the PBOs who contract with a multitude of end user/ individual public sector customers, supplying approximately 60,000 Public Sector sites. The customers include local authorities, NHS trusts, higher and further education establishments, schools, emergency services and housing associations. We recommend that public sector customers join Framework Agreements run by the recognised PBOs as they have the following benefits: • OJEU compliant – No further requirement to tender as these have been through a full OJEU compliant process, therefore creating efficiency and cost savings to customers Public Sector bodies as defined by Gov.uk (gov.uk/ government/publications/classification-of-public-bodiesinformation-and-guidance) who are looking to award energy contracts that have a lifetime contract value greater than £164,176 (current thresholds) must abide by The Public Contracts Regulations 2015 (legislation.gov.uk/uksi/2015/102/ contents/made).
• Awarded and managed by contracting authorities – Framework Agreements are set in place by contracting authorities, who act as the Central Purchasing Body (PBOs) • Transparency – Full visibility of all fees, as there is a notfor-profit commission structure from all PBOs • Terms and conditions pre-agreed – These are set in place prior to a Framework Agreement being awarded, providing a high degree of contractual security for all parties • Aggregated trading – Buyer power is created through aggregating supply volume, thus allowing for significant volumes to be traded on the wholesale market • Reduced supplier fees – Aggregation of supply/volume helps to reduce customer cost to serve • Dedicated points of contact – Bespoke and dedicated Customer Service and Contract Management teams are in place for the contracts • Contract development – Development clauses within Framework Agreements to improve customer experience and product options • Access to PBO specialist energy and procurement support • Managed risk strategies – PBOs develop risk strategies/ products to suit the needs of their customers, which are reviewed by their Governance Panel members, which usually consist of representation from individual subsectors of the Public Sector • Access to added value services – Framework Agreements allow access to additional goods and services • Key Performance Indicators (KPIs) – It is usual for larger Framework Agreements to be managed/monitored by pre-agreed KPIs • Join at any time – You can join at any point, and you do not need to sign up prior to the tendering exercise
DEMAND-SIDE RESPONSE
Making arrangements more suitable to the new landscape Ofgem’s Louise van Rensburg and Shai Hassid preview The Energyst’s 2017 market report and assess changes necessary to bring about change
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t has been an eventful year since the 2016 Energyst report on demandside response. We have witnessed unprecedented levels of DSR volumes in the last T-4 capacity market auction, with volumes tripling and reaching 1.4GW of DSR capacity. Alongside this, we have also seen more DSR winning contracts in different balancing services when competing against other technologies. These and other developments have strengthened our confidence in DSR delivering even more value to consumers going forward. The DSR sector has been rapidly evolving. We have seen new entrants to the sector, offering new and innovative DSR propositions to customers. We have also witnessed acquisitions of aggregator companies and collaborations between companies and utilities offering DSR. This signals the emergence of new business models for the provision of flexibility.
Demand Side
Response Shifting the balance of power 2017 Report
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Network operators should not be looking to develop any new storage facilities of their own. Instead, they should be buying storage output from other providers
Following the growing success of DSR among industrial and commercial consumers, we expect to see DSR realising its potential among smaller scale consumers in the future as well. Our joint November call for evidence with government set out our intention to remove regulatory and policy barriers to a smarter, more flexible system. This includes making it easier for all providers of flexibility, including storage and customers offering DSR directly or through aggregators, to access markets and compete on a level playing field. There were more than 250 responses to the call for evidence and the outcome of our work is set out in our Smart Systems and Flexibility plan published jointly with government this July. Most of the changes should take place within the next two years. Independent aggregators can accelerate the uptake of DSR among consumers. Integrating aggregators into existing arrangements and allowing them access to markets
that they cannot use at the moment (such as the electricity balancing mechanism) will need careful design. If we can do this successfully, it will bring benefits to customers. To explain our views, we published a letter alongside the action plan discussing key issues to consider when designing arrangements to accommodate aggregators. We believe the views presented in the letter can be helpful in current and future industry discussions. We strongly encourage stakeholders to participate in the different industry code modification discussions and contribute to shaping tomorrow’s market arrangements. Storage is another provider of flexibility. We also looked at what needs to be done to make sure it can compete on a level playing with other forms of flexibility. We concluded that storage should be defined as a distinct form of generation in regulation and legislation. This will help to ensure that we and industry can make
Aggregators to access balancing mechanism
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ggregators look set to gain access to the Balancing Mechanism (BM) and wholesale markets as part of a governmental and regulatory push towards a smarter energy system. Meanwhile, metering requirements look set to be relaxed, a move that could bring down the cost of demand-side response.
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Ofgem has set out its thoughts around access to the BM and wholesale power markets for aggregators, which have long argued that their inability to trade within them means they and their customers cannot easily maximise the value of flexible power consumption. For example, if day ahead prices spike due to generation
outages or changes in weather, money can be made by reacting accordingly. Meanwhile, generators have to balance their supply and demand on a half hourly basis. If they get calculations wrong, they must pay ‘imbalance charges’, which are much stiffer than in previous years. Accessing the Balancing Mechanism allows aggregators and end users to
exploit that requirement by selling flexibility to those that need it close to real time. However, Ofgem has also suggested that because aggregators can exacerbate imbalances by affecting consumption patterns and therefore suppliers’ ‘business as usual’ calculations, they will have to bear some of the cost of those actions.
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the rule changes needed so that network charges paid by storage are consistent across GB. We also want to licence storage as a specific type of generator. The licence will allow storage facilities to stop paying levies that fund government environmental programmes, which are charged to end consumers. This, and a range of other charging proposals we have made, will improve the ability of storage to compete. Additionally, we confirmed our view that network operators should not be looking to develop any new storage facilities of their own. Instead, they should be buying storage output from other providers. This is important because we want to see competition in provision of storage services and
for network operators to remain neutral market facilitators that are impartial in the way they manage their networks. On this we have also asked the Energy Networks Association, through their Open Networks project, to report on how parties will deliver opening up the delivery of network requirements to the market so that solutions such as storage or DSR can compete directly with more traditional network solutions, including as an alternative to reinforcement. As part of this, we have asked that network and system needs be signalled well in advance, to inform investment. National Grid, through its Power Responsive programme, will also be working on simplifying their products and informing potential providers of services
increase participation by these smaller demand customers. It is also interesting to note that the issue of trust in third parties, such as aggregators, has come up. This has been recognised among aggregators as an important issue. Our research showed good support for the current work by the Association for Decentralised Energy to put in place a code of conduct for aggregators. We support the development of the code and once it is in place, we will observe how effective it is. We will keep existing protections for consumers that use aggregators’ services under review. It is important that Source: The Energyst policymakers and regulators keep pace with the rapid about the opportunities changes we are seeing in the for getting involved. energy sector. We must all work These themes of investment together so that consumers can opportunities and information enjoy the full benefits were reflected in this year’s of a smarter, more Energyst survey. flexible energy Figure 1, from system. We the survey report, are therefore shows that a lot looking of customers forward to with lower peak DSR capacity within continuing demand said that the T-4 capacity our the main reason market auction engagement they did not with consumers participate in DSR is and working because of low returns. alongside the industry And a lot of customers as the system evolves. te with lower peak demand said they were not aware of DSR opportunities. So, with the barriers mentioned above The Energyst’s 2017 Demandbeing unlocked, we expect side Response Report can be that awareness of increased downloaded from 7 September DSR opportunities could at theenergyst.com
The regulator urged all market participants to get involved in the consultations and code modifications now being proposed in that area.
DSR, enable asset reallocation by DSR providers, and allow the stacking of revenues between the Capacity Market and ancillary services.” Separate metering requirements for the capacity market have added cost to those involved. For example, providers of similar services, such as Short Term Operating Reserve (STOR), have had
to invest in new, expensive metering for the capacity market. That metering also has to be extensively tested, adding further cost and time to the process. Enabling DSR providers to better stack revenues, or provide more than one service when viable, should also increase available DSR revenues. te
Figure 1: Analysis based on the survey results
Simplified metering On metering requirements, government and Ofgem’s latest paper states: “The Government will simplify metering requirements for those offering
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1.4GW
If day ahead prices spike due to generation outages or changes in weather, money can be made August/September 2017
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DEMAND-SIDE RESPONSE
Calls for I&C firms to help balance regional power grids Distribution network operators UK Power Networks and Western Power Distribution outlined plans for industrial and commercial (I&C) companies with onsite generation and flexible consumption to help balance their regional power networks at National Grid’s Power Responsive conference
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otiris Georgiopoulos, head of smart grid development at UKPN, said the company was starting to focus in earnest on recruitment of companies for its Power Potential project in the South East, focused primarily on Kent and Sussex. The aim is to create a market for flexibility that UKPN will manage and package up for National Grid while managing its own network constraints. It wants to prove that approach can deliver lower whole system balancing costs while maximising capacity on UKPN’s network, reducing overall customer costs – and enabling it to connect more distributed generation more cheaply. The company operates a 400kV line that runs from
Georgiopoulos: ‘We are trying to demonstrate how the DNO and system operator can work together’
the Thames Estuary down to Portsmouth, and Georgiopoulos said the zone “has the characteristics of small power system” accommodating nuclear, offshore wind, and
significant volumes of solar PV. “It is a dynamic system and an exporting region; in summer it has 1GW of demand versus 1.5GW of generation,” he said. UKPN, along with project partner National Grid, aim to create a market for both fast and slow reactive power on the network for voltage stability, and also active power and constraint management. “We are trying to demonstrate how the DNO and system operator (SO) can work together to provide services to help mitigate those constraints, enabling us to connect more distributed generation in the region,” said Georgiopoulos. “We are asking [distributed generators] that are creating the issue to help solve it by creating a market.”
That market will give participants prices for taking actions to help balance the system and UKPN will step up engagement with aggregators and I&C firms in September, said Georgiopoulos. In the coming months it aims to develop framework agreements with those firms “in readiness for service tendering or auctioning, which will happen closer to real time, some point next year”. “Framework agreements do not commit people [to anything],” said Georgiopoulos, “but it gives us an understanding of their requirements and shows us [potential volumes] willing to participate in a trial.” System design and testing will take place for most of next year in readiness for service launch in January 2019. te
WPD: revenue stacking key to DSR Western Power Distribution outlined further details of its DSR operation in the East Midlands, whereby it is “trying to understand how we can make DSR commercially viable for DNOs”, according to Matt Watson, innovation and low carbon networks engineer at WPD. Key to that goal, he said, was taking hassle away from providers and maximising the revenue streams they can stack. Otherwise “you can have a commercially viable service, but if nobody signs up, it is of no use to anyone”. DSR is not primary business for most companies, so simplification is key, said Watson. “They don’t want myriad products, they want simple stuff. So we are looking at services that can stack revenues from different paths, how to engage effectively with customers and trying to create processes that are low on admin and which put the burden of complexity onto us.” Constraint management is the key rationale, said Watson, and the company aims to notify participants to reduce power or increase generation with signals a week ahead of time.
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“At that point, we will pay people an ‘arming fee’ which assures them of profit,” Watson explained. “Closer to the day, we reserve the right to call or not call them. But they will still get that fee – which is where most of the profit element for them sits. If they are called, they also receive a utilisation fee.” That kind of “simple, prompt service” was something aggregators could “use and add to”, said Watson, with “lots of interesting conversations” between WPD and aggregators now taking place. The service aims to enable participants to stack revenues from simple forms of DSR such as Triad and STOR as well as constraint management for WPD, but Watson stressed that WPD is “absolutely keen that customers make and maximise revenues from other services with these assets”. WPD is now targeting half-hourly metered customers in the East Midlands that can respond to signals within 15 mins and hold it for two hours. Watson said such firms can either come direct or via aggregators and can opt for a simple or managed service.
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DEMAND-SIDE RESPONSE
How end users are unlocking flexibility and generating revenue Energy and technical managers from Welsh Water, Unite Students and partner Logistics outline the hurdles and the opportunities of demand-side reponse provision. Brendan Coyne reports
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fter labour, energy is Welsh Water’s biggest cost. The not-for-profit firm says it has kept bills below inflation for the past decade and intends to maintain that record. That provides strong incentive to maximise DSR. Welsh Water’s primary DSR activity at present is Triad and peak tariff avoidance. “For Triad avoidance we reduce our demand by about 50% without the use of any diesel generators in parallel with the grid,” says Andrew Heygate-Brown, senior energy innovation analyst at Welsh Water. Instead, the firm focuses on renewable technologies such as CHP, solar PV and hydro. Welsh Water’s automated systems prepare for peak tariffs by increasing reservoir levels prior to peak periods, and then turning off pumps or ramping down during the peaks. During winter, peak
demand would hit 40MW during those periods. “We have taken that down to about 17-18MW net after export benefit, which is a massive saving,” says Heygate-Brown. Triads and tribulations However, removal of Triad export payments will reduce those savings. Heygate-Brown says the company is dismayed that renewable technology will feel the consequences of policy intended to curb diesel. “We have 15.6MW of renewable hydro assets that can maximise exports during Triad periods to reduce our net Triad costs. We are going to be hit massively by the reduction in export benefit,” says Heygate-Brown. Fast acting assets Heygate-Brown says Welsh Water is now planning a major firm frequency response (FFR) rollout – and is looking beyond
frequency to broader markets. He believes Welsh Water can use the same equipment “not just for dynamic FFR, but also Triad avoidance, tariff avoidance, some supplier schemes (reducing imbalance charges where we receive a revenue share), STOR and/or Project TERRE. “We could also explore arrangements with DNOs to help with balancing services (constraint management) etc.,” says Heygate-Brown. The company would prefer to go direct to buyers of flexibility rather than through a middleman. But the barrier is technology, “We are not aware of affordable technology being available to participate directly in [FFR] markets with National Grid.” Cut out middleman? Could Welsh Water not just buy a platform?
We have 15.6MW of renewable hydro assets that can maximise exports during Triad periods to reduce our net Triad costs. We are going to be hit massively by the reduction Andrew Heygate-Brown, Welsh Water
Look beyond DSR to build business cases Unite Students provides student accommodation for about 45,000 students in 24 cities. Across some 140 buildings, its utility spend totals some £21m, with electricity the lion’s share at £14m. In terms of beds and rooms, it is akin to a large hotel chain, somewhere between Travelodge and Premier Inn. About 80% of buildings use direct electric heating
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and hot water, so the group is examining how to use hot water tanks as batteries. It is currently trialling about 120kW of those tanks for firm frequency response (FFR) via 20 flats in Bristol. That trial is about six months old. Energy efficiency manager Gareth Chaplin says that, should it deliver expected results, the group may roll out FFR more broadly across the estate.
But it is not without challenge, with occupants free to change controls at whim and strict safety standards around bacterial control. Think beyond DSR On the basis of the FFR and other trials, Chaplin and colleagues are building a business case to network those controls at room level. “That’s an expensive thing to do,” he says, and for DSR
in isolation doesn’t stack up. So Chaplin is liaising with different departments to make the business case. Better controls can reduce wastage, eg rooms are not heated when nobody is using them. They also feed into customer service, as networked controls can control comfort levels, so rooms are not cold in the middle of the night. Better energy monitoring can also
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Choose partners carefully
“We have an option to buy some technology from an aggregator, but we still have to use that aggregator’s service,” says Heygate-Brown. “It is tricky, there is the technology and the software and the need to integrate with National Grid’s systems, so it is not commercially viable for us to do it directly at the moment. But if there was a bit more assistance from National Grid in this area then we could participate with a lot more assets.” Heygate-Brown believes the key to unlocking more flexibility is an open marketplace. “The key to that is to provide the technology to enable access to all those markets,” he says. Avoiding the middleman would help maximise returns for Welsh Water, and keep down water bills for its customers. Heygate-Brown says
consolidation in the aggregator marketplace is currently impacting those returns. “The power has sort of shifted to the aggregators and they can really charge what they like. We’ve seen some changes of the rates,” he says. “The amount that we get paid is a lot less than it used to be. So that is an area of concern because the amount that National Grid is paying some aggregators is still the same, or even higher. “So if we owned the technology ourselves, we could participate in the most suitable schemes at the most suitable times while meeting compliance and keeping customer bills down as much as possible. Will Welsh Water take that route? “We are trying to go direct wherever possible, but, right now, for FFR, it is just not possible.” te
Partner Logistics operates two main cold stores in the UK. The sites have a combined maximum peak demand of about 2.3MW. Compressors, which run the freezers, are responsible for the lion’s share of load, of which around 500kW is flexible. The firm started Triad avoidance eight years ago, shutting compressors from 4-6pm in the winter. When it learned that a sister site in Belgium was providing DSR, UK technical manager, Ian Harvey decided to find out how the UK operation might benefit. As a result, Partner Logistics trialled placing flexibility into various programmes as part of an aggregator Restore’s portfolio. The company is now mulling whether to invest in the aggregators’ software platform in conjunction with its broker, CUB, which buys Partner’s power from Dong Energy. Harvey says he has to make a decision on the cost benefit analysis and feasibility of that investment in conjunction with the broker.
Either way, 12-month returns from the current programme total £40,000, he says. While “not huge … when you have [an energy] bill of £80,000 a month for one site”, the revenue will pay for an enhanced metering programme. “That will give us a better view of what assets are consuming and the variables that affect consumption,” says Harvey. “We would otherwise have faced Capex expenditure [for that programme] and I think because of that, and the DSR programmes we are running, we will start to see more noticeable savings.” Harvey’s advice to other firms mulling DSR? “Choose suppliers to compare carefully. Don’t go for the one offering the highest returns … because more often than not, they do not,” he says. “Find a supplier with a programme you can, if not fully understand, get to grips with – and with whom you feel confident enough to draw a line and say ‘no’.”
Demand Side
Response Shifting the balance of power 2017 Report
signal maintenance issues. Plus, given these are student halls, Unite may also install noise monitoring equipment to reduce complaints. “We are not looking to build a business case purely around DSR, but a multifaceted business case,” says Chaplin. “We are looking to solve as many problems as we can when doing it. “Strictly speaking, it is out of the remit of an energy
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manager, but that is why we work with colleagues in estates and customer experience to add value,” he says. “It is crucial to combine different benefits. DSM/DSR by itself just doesn’t stack up for us because of the nature of our estate. But if you start to package up multiple elements, it makes an attractive case financially, but also because we are ultimately a customer service business.”
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These interviews form part of The Energyst’s 2017 DSR report. You can download the report from 7 September at theenergyst.com
August/September 2017
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DEMAND-SIDE RESPONSE
Six firms get public sector nod Crown Commercial Service selects six aggregators for its DSR framework to simplify procurement of flexibility services for the public sector
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he Crown Commercial Service (CCS) has given the green light for public sector procurement of demand-side response services from six providers. Centrica, EDF, Endeco, Enernoc, Flexitricity and Limejump will vye to provide DSR services to the public sector. CCS manages in the region of £2.3bn annual spend on utilities and fuels. Ameresco and Kiwi Power, along with Flexitricity, were providers for the previous agreement, which has now ended. The new framework runs for three years with the option of a one year extension. CCS said it means reduced timescales for public procurement of DSR: instead of running a full OJEU procurement, buyers – government,
public and third sector organisations – now just need to identify their requirements, present them to the market and award a contract to the perceived best bid. While in reality, the work involved bringing megawatts into UK system balancing is somewhat more complex, the agreement is intended to give buyers some comfort that their supplier meets minimum qualification criteria. These include: • Minimum insurance coverage • Cybersecurity certification • Quality accreditation (ISO 9001) • Environment certification (ISO 14001) • Pricing transparency • Reference customers • Anti-slavery act compliance The new supplier group must provide access to at
least one or more of the following schemes: • Short term operating reserve • Firm frequency response • Frequency control by demand management • Capacity market • Demand turn up They will also be tasked with reducing peak network charges, both transmission (Triad) and distribution (DUoS red bands). Speaking at National Grid’s Power Responsive conference last year, Crown Commercial
Estate interim head of utilities, Julie Braidwood suggested significant balancing potential may be extracted from the public estate. “We are looking to increase the DSR we have contracted as much as possible,” said Braidwood. “There is a huge opportunity within the public sector estate.” However, she acknowledged the significant challenge of bringing together multiple stakeholders, particularly in critical environments such as the NHS. te
Free battery storage briefing for readers Experts from National Grid, Endeco and Eon join The Energyst to highlight battery storage challenges and solutions in free London event, held 26 October, London Capital Club
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ational Grid predicts there will be approximately 6GW of energy storage on the system by 2020. Even taking into account existing storage, that represents rapid growth over the next three years. There are numerous applications and revenue streams for storage, through challenges around finance and revenue streams are significant barriers in a fluctuating market. Despite that, businesses surveyed by The Energyst have
30 August/September 2017
strong appetite for storage. Our recent survey of 179 firms (largely I&C sector with some public sector participants), suggests about half of organisations are at least considering investment in storage. The Energyst, with sponsors National Grid, Endeco and Eon, is therefore launching a battery storage breakfast briefing, held at the Capital Club, London, on 26 October. The aim is to provide businesses and public sector
organisations with a deeper understanding of key market challenges and solutions, with experts on hand to answer questions and provide firsthand insight and experience. The event is limited to 60 guests. It is free for end-user organisations considering battery storage investment. It will be oversubscribed so be quick to reserve your place. te To reserve a free ticket, visit theenergyst.com/ events or bit.ly/2v9TbUT
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DEMAND-SIDE RESPONSE
Building the right infrastructure for flexibility Whatever your level of flexibility there are opportunities to earn new revenues, says DONG Energy Sales UK sales and marketing director Ashley Phillips
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he energy sector is evolving at a phenomenal pace. Our transformation to a greener future is well under way. About a quarter of our electricity comes from renewable sources and ‘zero coal days’ are increasingly becoming a reality; all great news for a more sustainable energy future. As we decarbonise, the industry itself is undergoing fundamental change. More than a quarter of generation capacity in the UK is connected to distribution, rather than transmission, networks. This is what is meant by a decentralised energy system – we now have a greater number of varied generators supporting our electricity demand, rather than relying on the handful of large power stations that dominated in times past. This is fantastic news for sustainability but brings its own challenges in terms of how we manage supply and demand. National Grid’s Summer Outlook report highlighted the difficulty in confidently balancing a system where so much of the capacity is less ‘visible’ to it, paying attention
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to the volume of solar panels connected to local distribution networks. This volume is currently difficult to predict, driving a stronger need for balancing controls during summer periods, as well as the traditional winter peaks that have been well served by schemes such as short-term operating reserve (STOR). Fit for a revolution? At the start of August, Ofgem announced its plans to evolve regulatory and market arrangements so that they are fit for our emerging environment, terming it ‘Regulation fit for a revolution’. The new regulatory principles are focused around such as areas as: • Aligning incentives to ensure that monopoly network operators act in consumers’ best interests • Removing barriers to entry for new technologies to encourage innovation • Providing easier network access for new entrants • Encouraging greater cohesion between transmission and distribution networks, in recognition of their changing roles
• Reviewing charging structures to ensure that they reflect the incremental costs and benefits of how the system is used The role of business in helping to balance the network should not be underestimated. With ageing fossil fuel plants closing and increasing volumes of variable generation being placed on the system, new and innovative sources are needed to help plug any gaps between supply and demand. (For those with a substantial amount of volume to offer, longer-term opportunities exist within Capacity Market auctions, for instance). The Power Responsive initiative has prompted a
Avoiding excessive system costs is achievable for most businesses by turning down overall usage for defined periods
significant growth in business participation, with many more businesses reaping the rewards available from demand-side response (DSR). In addition to a growth in the number and variety of schemes available via National Grid, the market has seen localised innovation from individual companies. For instance, DONG Energy’s Renewable Balancing Reserve enables companies to earn revenue from the imbalance market in return for their spare capacity, complementing DSR scheme participation. For those businesses not ready to commit to a DSR scheme, there are still plenty of ways to contribute, with the added benefit of sound commercial acumen. Peak usage periods have been a long-term focus for those responsible for managing our energy system. Transmission network use of system (TNUoS) charges are calculated based on a company’s consumption level during the three half-hour periods of heaviest demand during the winter: the triad periods. This acts as an incentive for businesses to reduce their usage when these peaks are
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Sponsored column
Is your Public Sector Buying Group actually saving you money? Many Public Sector Buying Groups (PSBGs) can only offer one utility supplier. Some lack transparency through their commissionbased fee structure. That is neither value for money, nor competitive. STC Energy has already saved public sector organisations millions through transparent fees, a multi-supplier framework and by ensuring that they only pay for what they use.
likely to occur, as a means of managing energy costs. From this winter, capacity market charges will be introduced. They too will be based on consumption during winter peaks, making avoiding these times a critical activity for businesses looking to minimise costs. Distribution use of system (DUoS) charges also vary depending on the times at which a business uses its electricity. Times of day are split into red, amber and green ‘bands’, with red bands attracting the highest charges and green bands a much cheaper time to consume. At present, the cost differential between a red and green period is quite substantial, although this is set to change from April 2018, when charges will be reapportioned to even out the costs throughout the day.
Avoiding excessive system costs is achievable for most businesses by turning down overall usage for defined periods, eg switching down refrigeration or rescheduling production timings. Those businesses unable to turn down altogether may switch to on-site generation instead, where it proves a cheaper option than consuming from the grid. For those businesses able to export electricity, DSR is a great option. Tools such as Price Pilot from DONG Energy also enable exporters to identify the most lucrative times to sell based on wholesale price movement, adding further benefit to the bottom line. Whatever your level of flexibility, there’s sure to be a smart approach to driving down energy costs, earning new revenues and supporting a more sustainable energy future. te
Energy Management Challenge Can you devise the perfect eight-hour run schedule for our virtual power plant? Take two minutes to test your expertise and see how close you can get to the optimum result in DONG’s Energy Management Challenge: dongenergy.co.uk/ energyforbusiness/energy-challenge
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Limited time, resources and a complex market leads many public sector organisations to simply renew their existing contract, with lengthy notice periods for ending a PSBG contract also having a significant impact on their decision to switch. STC believes that this ongoing cycle of simply renewing a contract once it is up is what keeps many PSBGs in business. However, this does not ensure that you are receiving the best deal for your requirements. Transparent fees Many public sector organisations do not know what they are paying their PSGB because fees will often be embedded into their utility bill. Given the budgetary pressures faced by the public sector, STC believes it is essential that value for money is achieved and that all fees are transparent and understood from the outset. Freedom of choice If a PSBG only uses one supplier, as some do, the energy they procure is not being competitively priced or benchmarked against other suppliers. It also raises the question of what incentive the PSBG receives from that supplier.
But there are other independent utility consultancies that can deliver a better deal. STC offers an OJEU-compliant multi-supplier framework that gives public sector organisations the opportunity to choose from 12 utility suppliers. The framework means that a utility supplier can be chosen based on your requirements and not just because that is the only option presented to you. This access to a wider offering can often lead to reductions in your energy consumption and greater cost savings. Only pay for what you use Many PSBGs are purely procurement-based and provide little added value. Energy consultants such as STC offer a wide range of added value services. For example, services such as bill validation can help save between 3-5% on your utility expenditure. Because suppliers’ contracts and invoices are complex, it is inevitable that some will contain billing errors. Such errors are very common and over the last two years, STC has recovered more than £36m in utility billing errors for its public sector customers. Given such budgetary pressures and limited choice, can you afford to simply renew your contract with your PSBG?
Renewing your utility contract? Contact STC Energy on 020 8466 2900 or info@stcenergy.com to ensure you receive the best value for your budget, or visit stcenergy.com to see what else we can deliver
VIEWPOINT
It’s not all about the battery The growing energy storage market is crucial to the evolution of energy infrastructure, writes Electricity Storage Network’s chief executive Georgina Penfold
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hat a summer it has been for the energy storage industry. The publication of the government’s Smart Systems and Flexibility Plan at the end of the July highlighted how crucial BEIS and Ofgem consider energy storage to be to the evolution of our energy infrastructure. Alongside plans to encourage the development of smart homes and businesses and promises of further consultation on flexible markets and pricing structures – some of which is already happening with Ofgem’s Significant Code Review – the plan outlined several moves to support the growing energy storage industry. These include changes to the Electricity Act to formally define electricity storage in policy terms, a review of planning regulation to help make planning permission easier to obtain for large storage projects and to undertake work to understand the network and tariff implications of increased use of electric vehicles and vehicle-to-grid charging.
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The launch of the Faraday Challenge alongside the Smart Systems and Flexibility Plan also saw £246m committed to support battery development in the automotive sector but at the same time, proposals to change the de-rating of energy storage in the capacity market may not be helpful to everyone in our sector. American popsters might be all about the bass but energy storage is not all about the battery. There are many other technologies which can provide storage capabilities and it’s all about getting the right technology in the right place to do the right jobs. Technologies such as liquid air energy systems, flow batteries, hydrogento-power and flywheels all contribute different benefits to the system and I’m looking forward to hearing from specialists at The Energyst’s upcoming events on DSR and energy storage during the next couple of months. As the autumn starts to draw in and the policy ambitions are actioned, major energy consumers are looking again at how behind the meter storage and
demand-side management can reduce running costs and manage energy consumption. Electricity storage has been a game changer across the industry and it has still got a long way to go. Despite the changes to distribution charging that previously resulted in major end-users drawing back from DSR and DuOS red band avoidance, the increasing uncertainty around the future of network charging mechanisms means that for many, these projects are now firmly back on the feasibility table. Of course, the other beauty to storage is that it can also provide a degree of energy security, helping those allimportant business continuity plans for critical sites. At the Electricity Storage Network, we have been busily supporting energy buyers, brokers and aggregators to understand how energy storage can support an active energy management strategy. If you would like to know more, contact info@electricitystorage. co.uk. The conversation has only just begun. te
There are many other technologies which can provide storage capabilities and it’s all about getting the right technology in the right place to do the right jobs
The Electricity Storage Network will be speaking at the DSR event on 7 September and the Battery Storage Briefing on 26 October. See theenergyst.com/events
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ENERGY STORAGE
Evolution and revolution are key to the future Schneider Electric’s energy segment manager Darren Farrar looks at how batteries will change the energy system and what needs to be done to enable it
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s the country’s need for consistent, reliable energy grows, we need to embrace innovative ways of generating and making the most of the power at our disposal. Within the next 15 years, the UK is expected to lose 39GW of generating capacity due to the government’s continuing programme of coal and nuclear power plant decommissioning. To meet this capacity challenge, providers and policy-makers across the globe are having to think outside the box. This is why excitement is building around the potential of battery storage. Partly thanks to the declining price of lithium-ion (Li-Ion), battery storage technology stands on the precipice of strong growth. Indeed, the UK government has recently launched its first phase of a £246m investment in battery
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technology, while the energy storage market is projected to reach up to 10.7GW by 2050.
39GW
Generating capacity the UK is set to lose within the next 15 years due to the government’s continuing programme of coal and nuclear power plant decommissioning
Unlocking capacity Cost-effective energy storage that can be deployed to scale is the key to unlocking extra capacity, furthering potential in renewables and supporting frequency response and peak shifting. It also offers the promise of helping to balance our increasingly localised networks. The ability to store energy generated from renewable sources, such as solar and wind, makes them more reliable – providing a dependable power source no matter the weather. Battery storage also provides a valuable reservoir of back-up power, which ensures the lights stay on even when the traditional grid cannot cope with demand. Besides addressing our
capacity needs sustainably, the growing popularity of battery storage technology will create another paradigm shift. Namely, it will change how we distribute, manage and share our energy on a national and local level. With the ability to store large quantities of energy more easily, the importance of the national grid will diminish as smaller, more self-sufficient local networks spring up across the country to take their place. In recent years, the National Grid has implemented capacity auctions to allow bidding by new generating plants to provide new capacity to the grid. Yet much of the new capacity has been at distribution level – ie at voltages managed by the Distribution Network Operators (DNOs) – and awarded to smaller generators. A seismic shift is taking place, moving away from traditional large generators and towards
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smaller plants connecting into distribution rather than transmission networks. The trend suggests that from the early 2020s onwards, we will witness the widespread transition of DNOs into distribution system operators (DSOs), with the ability and remit to balance supply and demand at a more local level. Stacking up problems Battery storage is enabling this evolution but it also poses its own challenges to those attempting to make the transition. The main barrier to entry so far has proven to be policy. Alongside the necessary licensing changes needed to become a DSO, DNOs must contend with the official definition of battery storage as a form of generation. As DNOs have historically only been involved in distribution, this puts them
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Cost-effective energy storage that can be deployed to scale is the key to unlocking extra capacity, furthering potential in renewables and supporting frequency response and peak shifting
in a difficult position with the regulator, Ofgem. More seriously, battery storage is charged twice by the regulator as it both takes and adds power to the network. In a market where revenue ‘stacking’ – using the technology to confer the optimal number of opportunities and benefits – is key to the new technology’s success, such regulations are putting a cap on its potential. However, there are reassuring signs that the government is listening and many in the industry expect Ofgem’s upcoming plan for a smart, flexible energy system to resolve the regulatory burdens surrounding battery storage and draw up a new definition that further opens up the storage market. Following a call for evidence issued in winter 2016 and despite a delay caused by the 2017 general election, all signs from the
government and regulator suggest they are listening to the industry’s concerns and will act accordingly. In the near future, battery storage will form an essential part of power generation, transmission, distribution and consumption. Alongside flexible generation, new and more efficient infrastructures and growth in demand response, energy storage will act as the catalyst for the transition of DNOs into DSOs and our evolution towards a more localised and sustainable energy system. Yet to reap its rewards we must liberate its potential. The adoption of battery storage has been stymied by an obscure definition that prevents revenue stacking and discourages investment. Urgent clarity is needed to truly allow us to supercharge the future of battery storage. te
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ENERGY STORAGE
Long-term forecast slashed National Grid has almost halved its top-end prediction for penetration of UK energy storage but the market is growing faster than it anticipated, with almost 6GW set to be connected by 2020
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ystem operator National Grid makes long-term forecasts each year under its Future Energy Scenarios document. Last year, under the high level ‘Consumer Power’ scenario, it estimated a maximum of 18.3GW on the system by 2040. This year, however, the top-end projection is just 10.7GW by 2050. Head of energy insights Marcus Stewart said
the downward revision was due to “improved modelling” that accounted for likely cannibalisation of arbitrage opportunities for battery storage assets. “Last year was the first year battery storage was included in the scenario,” he said. “We had a reasonably simplistic approach to working out theoretical maximum [for battery penetration last year]. “This year we have improved modelling. So the values we calculated this year
Figure 1: Levels of storage connected in 2040 (GW)
Source: National Grid FES 2016
Figure 2: Storage capacity by 2050
Source: National Grid FES 2017
are lower – we have looked at the arbitrage value and you start to see cannibalisation of revenues. So we have brought that [estimate] down to a level where we see storage being economic as a business case.” Stewart said the methodology now took into account balancing
of renewables against different loads at different times of the day “so it is more sophisticated”. However, the Future Energy Scenario document does show a faster build rate of initial storage growth over the next couple of years, suggesting almost 6GW of storage capacity by 2020. te
‘UK has enough spare power to electrify every car’
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here is enough spare capacity in the UK power system to electrify every car on the road, according to Flexitricity co-founder and chief strategy officer Alastair Martin. Because each car is effectively a battery, the UK would not run out of power by doing so, he suggested. Running the numbers on 2016 generation load factors, Martin estimated that there was 120TWh spare. That, he said, is roughly the amount of power required to switch fossil fuelled cars to electric vehicles. However, he pointed out, what is the point of switching from one fossil fuel, oil, to another, coal or gas?
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Martin: ‘The UK would not run out of power’ “Yes, that would be better than burning oil in tiny, inefficient engines but it is hardly a success.” Martin pointed out that in 2015 the UK generated 57TWh from renewable sources “and it is growing rapidly,
so we are half way there”. Martin was speaking at National Grid’s Future Energy Scenarios launch. While much press has focused on the increased peak demand resulting from rapid growth of electric vehicles, Martin said smart chargers and, crucially, a smarter, joined-up energy system, could avoid the need for additional copper and plant. However, he said that requires policymakers, the energy industry and carmakers to “start smart”. te
Martin estimated there was 120TWh spare – roughly the amount of power required to switch fossil fuelled cars to electric vehicles
Is electric car trouble ahead for UK businesses? See policy and legislation, p16
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Sponsored column
Catalyst for zero-cost battery storage change
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usiness energy consultant Catalyst is to introduce its free commercial battery storage solution. This approach will target the large industrial and commercial sector, and offer access to a zero cost battery storage model that complements its existing range of energy services. Currently battery storage presents a significant investment decision for energy-intensive customers. With a 1MW system currently costing more than £1m, they are a luxury beyond the reach of most companies. Undoubtedly in the next decade the cost for battery storage will continue to fall, and new business models will allow for smaller-scale systems to become more commercially viable. However, the current technology lends itself extremely well to energyintensive users, by providing them with the ability to use onsite energy storage for peak charge avoidance solutions. This provides an extremely strong business case for battery storage, underpinned by the impending increases in non-commodity charges in the coming years. Most market participants see batteries and demand-side response as complementary technologies. But the ability to both shave DUoS and Triad costs, in combination with frequency response revenues from National Grid, creates unrivalled opportunities for large commercial users. With or without an enhanced frequency response contract, due to the flexibility that an onsite battery can provide, the technology also
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lends itself to providing additional embed benefits such as increased resilience on site. Catalyst, with a host businesses’ site management team, will develop a deployment strategy to install the batteries free of charge at proposed sites. These will then provide a peak shifting service and charge when energy prices are low, before discharging when they are at their peak to generate savings across the business. A small proportion of this energy is then used to provide ancillary services to the grid to create the revenue that funds the energy storage devices. Chris Hurcombe, managing director of Catalyst, stated: “Batteries provide the ideal vehicle to dramatically reduce peak period costs while at the same time providing energy security and access to revenue generation schemes. Although the technology is already viable, the current price point puts them out of the reach of those organisations that could benefit most from them. We aimed to address that issue by securing the appropriate funding streams that allow us to provide large scale solutions at no cost to our clients.” Catalyst is currently looking to talk to large industrial and commercial sites that would like to explore the opportunities around battery storage. te
Uninterruptible Power Supply (UPS): keep your business flying high With modern advances in technology, increasing amounts of critical electrical equipment is relied upon in the everyday operations of companies both in the private and public sector. Therefore, it is paramount to ensure both hardware and software is protected from electricity supply issues that can cause critical systems to fail. Unfortunately, supply issues continue to become ever more common with the growing constraints of the ageing UK electricity network as it struggles to keep up with growing demand. As a result, many sites are experiencing problems such as brownouts, blackouts, voltage spikes and dips more frequently. This can inflict significant damage upon electrical equipment and sensitive business operations leading to escalating costs and security issues. The scale and regularity of supply issues are increasing which is noticeably visible across the news within the energy industry and on a national level. This is highlighted through problems recently experienced by two large airports who, in separate incidents one month apart, suffered critical power issues causing functionality of major parts of the airports to cease, resulting in significant delays, cancellations and lost luggage for thousands of customers. It was reported in the incident in Scotland that the airport’s back-up power systems also failed within the terminals but not on the airfields, which fortunately kept the runway lit avoiding potential crises. Power failures of this degree not only cause frustration but can lead to security issues and have distressing consequences to a business’ reputation and operational costs. A consumer-
focused business such as an airport may be expected to compensate its customers in an attempt to repair the damage caused by the stressful experience; additionally, materials could be wasted if manufacturing or automated process are interrupted, leading to potential further cost ramifications. When protecting facilities, an effective, secure and reliable form of uninterruptible power supply (UPS) must be considered to ensure a constant electrical supply can be maintained during periods of supply issues from the network or total power failure. Some facilities use diesel generators or other traditional systems to provide UPS, but these are ageing technologies that can be unreliable and prone to longer response times. A modern solution for providing UPS is battery-based energy storage technology, which stores energy provided by the National Grid at times of low demand, or directly from renewable sources, to be utilised when required. By monitoring and measuring the electricity supply to the load, this solution will instantaneously recognise, within a threemillisecond timeframe, when the grid supply fails and will seamlessly continue to provide power for a period of up to two hours. VIRTUE, Powerstar’s innovative energy storage solution, can provide full UPS capabilities, alongside greater control and flexibility of a site’s electricity usage, offering potential to access grid incentives. It delivers a complete, bespoke, ‘future proof’ engineered solution by allowing easy scaling to manage increases to growing demand. For more information on VIRTUE and the benefits it can deliver your business visit http://powerstar.com/virtue/
Heading goes here Style for standfirst - Usually two lines but can go longer if required. Style for standfirst - Usually two lines but can go longer if required
Virtual reality: the next data centre revolution? Could virtual reality provide the answer to avoiding performance problems in data centres and support the next revolution, at the Edge? Louise Frampton recently visited the UK headquarters of Future Facilities and ‘strapped’ into the 3D world of data centre simulation to explore the potential of the technology
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he use of virtual reality technology could change the way data centre operators design and manage their facilities, as well as training staff to avoid human error. However, according to Future Facilities chief operating officer Jon Leppard, the technology could “come into its own” as we see the next stage of the data centre revolution unfold. Future Facilities has developed an interactive virtual reality platform that allows users to observe the effects of change to the data centre environment, which has the potential to help improve performance. The
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company has been pioneering simulation tools, used by data centre professionals to improve thermal management and reduce energy costs, since 2004, and this latest development builds on this expertise. Simulation using the company’s 6SigmaDCX platform has already helped high-profile operators eliminate hotspots, improve efficiency and increase computing capacity at their data centres. For example, Dell identified tactical and containment changes at its 15,480 squarefoot high data centre in Texas to improve PUE from 1.86 to 1.77, reducing chiller power consumption by 12% and
overall power consumption by 5%, with potential annual savings of $100K. Capacity per cabinet could also be increased from 2.7kW to 3.2kW aiding expansion. When CBRE’s global finance customer wanted to improve energy efficiency, it used Future Facilities’ Virtual Facility – identifying improvements to save the bank an estimated $10m-plus through combined efficiency and capacity gains in a single data centre. Cisco has also used Virtual Facility analysis to achieve a 30% reduction in power required for cooling, as well as cost savings of $200,000 per year through an increase in
chilled water set point. Proof-of-concept Having identified the potential of virtual reality to take simulation to the next level, the latest proof-of-concept platform allows users to explore data centre design in a safe offline environment, enable trouble-shooting of existing sites, as well as run ‘what-if scenarios’ to support changes in infrastructure. The first time you use the virtual reality program, you are struck by the immersiveness of the experience – it feels very different from seeing an image on screen; you can ‘walk’ through aisles of three-
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DATA CENTRE DESIGN
Generator model they walk the floor, to help them understand why they have an issue. “This is the final frontier of where we want to go… It will be a new way of interacting with engineering,” comments Fenton.
dimensional racks, choose which direction you want to go in, while viewing the assets and crucial information such as air flows – it certainly feels like the dawn of a new era, as Scott Payton, technical director of Global Data Centre Engineering, suggests – after experiencing the program for himself, he described the addition of virtual reality to the 6SigmaDCX simulation platform as doing for “engineering simulation, what the flight simulator did for the aviation industry”. Future Facilities product manager Mark Fenton explains that the next stage of development will be to
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make the platform more interactive, so that, when you are immersed in the virtual facility, you can ‘touch’ devices, look at what applications are running, decommission equipment, and select from a menu of what is going to be installed. Rather than passively walking around the virtual environment, you will be able to interact and make changes live in this environment. The next stage will be augmented reality, where the computer-generated image is superimposed on a user’s view of the real world – in this case their data centre. Operators will be able to see live data with visible air flows, while
Technology potential So how will virtual reality change the way data centres are designed and managed in the future? The technology has a variety of potential uses, depending on the main goal of the business. Virtual reality makes it possible for designers to give clients a virtual tour of their proposals; colocation operators can show customers a new cage layout and how it will operate; while operational sites can be optimised to improve performance, reliability and costs. Owner operators experiencing hot spots can use the technology to understand why they are having cooling problems, for example, or simulate the deployment of a new piece of hardware to see the impact on their data centre,
or anticipate possible outcomes when performing maintenance. Overlaying simulation and DCIM data enables greater understanding of data centre performance and it can be used for site assessment, analysis and training to reduce human errors and failures. Failure scenarios can also be run to establish how a data centre will cope with a specific cooling or power problem. Data centres may also want to improve their efficiency profile, or look at the potential of raising the temperature of the facility. Using the technology, operators can trial the scenario, in the virtual world, with the peace of mind that they can avoid actual risk. “Virtual reality is an exciting area for owner operators – rather than having to walk the physical site they can ‘strap in’ to virtual reality, overlay the simulation, integrate data from DCIM tools and bring everything together in one place,” comments Leppard. “We can take the data »
They say a picture paints a thousand words but virtual reality will give you 10,000 words – you just need to decide which ones you are going to read. Making the technology easy for the lay person to use is crucial August/September 2017
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DATA CENTRE DESIGN centre operator on a virtual tour: show them the racks, the performance, tell them from the point of view of the environment how it is going to operate, where the access is going to be and the cooling equipment. The colocation provider may have one room segregated into cages. If they sell some high-performance computing in one corner, they can see how it will impact on the other neighbouring cages. They can use it as a marketing/pre-sales tool, as well as for engineering… It takes them on a full sales journey,” Fenton explains. “Huge hyperscalers, such as Google and Facebook, may do less day-to-day management, but they will undertake big projects – for example, they may decide to retire half of a room and bring in new hardware, so they will use the tools to design and lay it out, to see what the performance is going to be like. If they lose a server because something overheats, the fact that someone can’t poke or like for a few seconds isn’t the end of the world so they are more interested in efficiencies, while a bank will be looking for as close to 100% resilience as possible,” he continues.
Changing market The use of computational fluid dynamics (CFD) and engineering simulation, in general, has been steadily growing but the market is changing, according to Leppard: “Three or four years ago, around 75% of our business was in design, but today around half of the business is with owner operators using simulation in-house. Most new data centres have used CFD simulation. Although the percentage of live
The number of enterprise sites has also been reducing; businesses such as Coca-Cola and Deutsche Bank have been moving away from owning data centres and are moving into colocation space. This, according to Leppard, is further driving the need for virtual reality. “Colocation centres base their business on reliability and cannot afford to get it wrong. They need simulation to ensure the decisions they make will not affect their core business. It
Large facilities will be underpinned by hundreds and thousands of little edge sites. The ability to ‘transport’ staff to these remote sites, via virtual reality, will be a major driver for the technology in the future sites using it on a day-to-day basis is still relatively small, it is significantly growing. “People are no longer using the technology as a band aid to solve a problem. Rather than IT stating: ‘You have two weeks to install this’, and operators having no idea about what the impact is going to be, following a configuration change, people are getting wiser and utilising it to predict what is going to happen, to avoid problems. “We are seeing a trend towards operational planning
– mission critical facilities in the banking, insurance and government sectors are using simulation on a more regular basis, instead of just troubleshooting or using it for energy efficiency trending. “You wouldn’t buy a suit without trying it on first, yet we, in this industry, seem to think it is fair game. However, there are tools, that give you an opportunity to ‘try it on’ first, without actually flicking on the switch and waiting for something to happen.”
Edge site simulation
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is their reputation on the line and colocation providers want to distinguish themselves as the best,” Leppard explains. The technology will also be crucial to supporting the next wave of change in the sector, he claims: “With the future of data centres requiring closer proximity to people and devices, we are seeing large hyperscale data centres supporting thousands of discrete edge sites. “The next stage is being driven by IoT – the vast amounts of data produced from
our phones, cars, watches and other devices will need to be transported back to hyperscale facilities and this is where the birth of small edge sites will emerge. It won’t be possible to rely on a large-scale hub in the US, as there will be too much of a delay. In the future, there will be a box on every street corner.” This will still be architected around large facilities but they will be underpinned by hundreds and thousands of little edge sites, he believes. The ability to ‘transport’ staff to these remote sites, via virtual reality, will be a major driver for the technology in the future, therefore. “Ultimately, simulation isn’t voodoo,” comments Leppard. “You can see power; you can see space, but you can’t see cooling. We are trying to find a way to communicate how cooling works and why it may fail. They say a picture paints a thousand words but virtual reality will give you 10,000 words – you just need to decide which ones you are going to read. “Making the technology easy for the lay person to use is crucial – all the user wants to know is ‘should I, or shouldn’t I?’, ‘where should it go?’, ‘yes or no?’ If we can achieve this, we have done our job.” te
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Making the business case for battery storage
Battery Storage Briefing Thursday 26th October / London Capital Club, Abchurch Lane, EC4N 7BW The new Battery Storage Report will launch with a breakfast brie ng that explores the outlook for battery storage and how to make it work for your business.
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ENERGY MANAGEMENT
The foremost challenge With energy costs persistently rising, continuing concerns over resilient energy supplies, and increasing levels of statutory obligations connected to emissions and climate change policies, facilities managers will have to face many challenges. Authors Andy Lewry and Cameron Steel discuss how facilities managers can prepare for these
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ow energy management is undertaken varies depending on the type of organisation; where larger estates and corporations will have a duty holder with a clearly defined role for managing energy, within smaller companies it is typically the case that this will fall to somebody as an additional responsibility. For successful outcomes, coordination within the different parts of the business is crucial. An energy manager may be tempted to turn off services; however, for a business to operate successfully it is essential to provide staff with conditions that promote efficient and effective working practices. Such dilemmas are not uncommon in business but doing nothing and carrying on as normal – typically classified as ‘business as usual’– is not an option when rising energy prices and security of supply pose major risks to business and need to be managed. The challenges: Ownership – An organisation must plan to effectively address any challenges that might be
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encountered. Often these plans are driven by compliance – to meet statutory requirements and adhere to policies – for example, health and safety or environmental management Energy management needs similar levels of ownership and responsibility throughout the organisation – from board level to the shop floor. The strategy and plan need active boardroom support or the initiative will stall at the technical level and not result in organisational culture change. The aim should be to ensure that it is embedded in the management practices and becomes the ‘new’ ‘business as usual’. An energy management strategy needs to be carefully linked to the overall business strategy so that it does not become a constraint; after all “process is king” and this activity should support good business practice. System – For energy management to succeed there must be a management system that closely assesses what, where, why and how the energy is used. Careful monitoring and analysis will identify areas and opportunities for improvement.
A robust energy management system should: a) have policies and processes that meet business needs; b) have clear aims and objectives that are ‘SMART’ in nature; and c) be flexible enough so that it can adapt to business needs User behaviour – People are energy management’s biggest and best resource but if badly managed can also be the biggest obstacle. Technology is only an enabler and for energy management to really work the management and staff need to be on board. Site induction, education, training, feedback and updates will all assist. Directors should champion energy management and the associated initiatives, managers should own the procedures and users need to be incentivised. Measures for achieving good energy management: Passive measures – design and building fabric Modern building designs are normally governed by building codes which require an overall
building energy performance that can be achieved by passive design, and the use of low carbon technologies and renewables. Sustainability design tools such as the Building Research Establishment Environmental Assessment Method (BREEAM – breeam.com) help shape new installations and refurbishment projects. ‘Performance gap’ issue will probably arise if handover, operation, maintenance and commissioning issues are not considered and the use of assessment methodologies such as BREEAM-In-Use will help. With older structures this is not always as straightforward. Although building science dictates that the fabric should be dealt with first, the economics do not usually add up unless you have already planned an upgrade and all you are doing is upping the specification – this is normally a comfort or protecting the asset. Both are a legitimate part of the business case as they ensure the value of the asset and, if rented out, maintain rental values and reduce void times.
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Active measures If the occupants are continually demonstrating poor user behaviour – for example, opening windows and using portable heaters – this is usually a sign of a poorly controlled building Controls are normally the answer – but is the choice of controls depends on the functionality required. Checks and balances Without monitoring and analysing both the existing situation and the feedback that informs any subsequent improvements, a management plan will fail. Energy management needs to be seen as more than just checking the meters and correlating the bills; although this may be essential to initially sell the philosophy and to generate initial savings. Processes to check meter readings and to observe the
general patterns of use and operational energy consumption trends will help to highlight problem areas and any unusual energy activity or specific event – for example, spikes in the daily usage are indicative of poor control and/or failing plant. Regular energy audit can highlight particular areas for improvement and should be used to influence user behaviour and to implement measures or better working processes. Procurement The most immediate challenge might be choosing an energy supplier and selecting the correct tariff. Matching the tariff to the business load profile can be difficult and estimating future needs may require outside expert help. As energy management systems develop, and projects
Figure 1: Energy trilemma
that will save energy are identified, further procurement challenges are likely to relate to ensuring that the best solution is purchased, whether that be user focused (such as training) or a technology offering. Enthusiastic sales representatives may focus only on their particular product or service, whilst not necessarily looking holistically at the overall installation and how it is used. Taking a short-term view or cut-price approach, ie value engineering, is normally a false economy. No-cost or low-cost solutions such as behaviour changes are not silver bullets or single-shot solutions; they need to be continuously reinforced or the working culture will slip back to its previous state and savings will eventually be lost. The reality is that the business may not always prioritise investment in energy-saving
measures and any business case needs to be robust, taking into account reduced maintenance and increased productivity. Such factors will minimise risk to the owners by protecting the asset and, if the building is rented out, ensure high rental values and low void times. te Cameron Steel and Andy Lewry were part of the IET working group responsible for producing Guide to Energy Management (theiet.org/ resources/standards/em-guide. cfm). The guide provides tools to assist energy managers and engineering staff to understand their own particular processes and responsibilities and the correlation between their respective duties. For an expanded version of this article, please see Wiring Matters magazine: http://electrical.theiet. org/wiring-matters/index.cfm
Figure 2: Design factors for energy management systems Supply
Buildable Resilience Sustainable operation Sources
Cost Maintainable
Sustainability of energy supply
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Affordable energy 5
Disposable
Source: IET’s Guide to Energy Management
August/September 2017
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ENERGY MANAGEMENT
Why the performance gap? University of Strathclyde and partner Arbnco are working to solve energy efficiency problems caused by the gap between design and operation in buildings
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he Energy Systems Research Unit (Esru) at the University of Strathclyde is working with software provider Arbnco on a knowledge transfer partnership to work out why the actual energy performance of buildings is often well below design expectations. This gap leads to higher costs, higher consumption, unhappy clients and can foster distrust, and therefore energy efficiency investment apathy. According to Arbnco, many initiatives investigating energy performance gaps make use of dynamic integrated building performance simulation tools to analyse remedial actions and upgrades. Building simulation differs from compliance type models, such as simplified building energy model (SBEM), currently used to support estate management. However,
this capability of simulation models is often compromised by the lack of prior calibration to match prediction to current performance. This KTP aims to develop a software tool to undertake such calibrations automatically. It is hoped that the tool will lead to high-quality building simulation models for posterior use in energy analysis and decision-making regarding the operation, maintenance and retrofitting of large estates. Arbnco intends to integrate the software into its product suite. The calibration tool will employ actual performance data (energy and indoor environment) to routinely calibrate building simulation models prior to application for energy analysis. The KTP will also incorporate an element of ‘wellness’, with both Arbnco and the University of Strathclyde studying potential
The actual energy performance of buildings is often well below design expectations. KTP aims to find out why
uses of calibrated models to evaluate interactions between energy, thermal comfort and indoor air quality. Professor Joe Clarke, director of Esru said: “This KTP will contribute towards closing the energy gap and understanding its causes. KTPs are an exceptional knowledge transfer mechanism, allowing academics to convey research outcomes to a business via a recent graduate. In this way the business can accelerate the transformation of research to new commercial products and solutions.” Maureen Eisbrenner, cofounder of Arbnco, added: “The long-term plan is to develop a tool that can be used internationally. This means that funds with buildings in multiple countries can develop a consistent, global policy on asset and energy management.” te
Getting the right capacity metering solution
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he Capacity Market provides an opportunity for businesses to receive revenue by ensuring sufficient generation or load capacity management to the grid at times of system stress. With the market in its infancy, Anglian Water approached IMServ to help it ensure entry. According to IMServ bureau manager Katrina Coombes: “The Capacity Market has strict guidelines for market entry, and with a deadline of only eight weeks to complete installation, we had to work quickly with Anglian Water and Electricity Market Reform Settlement
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(EMRS) to determine the initial project requirements before beginning our approach.” A bespoke capacity metering solution of 77 meters on back-up onsite generation was installed, and IMServ created the technical WP197 Metering Statements, which passed the EMRS validation. By employing end-to-end project management and a consultative approach, any issues that arose throughout the complex process were quickly resolved. Coombes notes that the ground-breaking nature of the work nonetheless threw up challenges: “One aspect
involved producing metering packs containing CT and metering certificates as well as data from the installed meters, we had to create a format that would achieve approval from EMRS. To add to the pressure, the approval process took time, and with no possibility of extending the deadline there was little room for error.” Finally, Anglian Water and IMServ attended a metering test and site audit with EMRS, in order to ensure compliance with the EMRS guidelines. Subsequent audits have also taken place since the approval, with a 100% success rate.
The result was Anglian Water securing entry into the Capacity Market, enabling it to receive ongoing revenue from the scheme. Tom Lee, energy contracts and information manager at Anglian Water, said: “IMServ was able to respond to our request for a quotation and tailored a service that met our requirements. The short timescale was very challenging but IMServ showed excellent flexibility, depth of knowledge and expertise to enable us to successfully obtain our Metering Test Certificate from EMRS.” te
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VIEWPOINT
Unlocking the potential of the private sector Tim Crozier-Cole, a member of the Esta EPCG and principal consultant at Verco, looks at what’s happening with private sector energy performance contracting
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ore than 60 energy professionals gathered in London in June to discuss energy performance contracting in the private sector. It was the latest in a series industry events organised by the Esta Energy Performance Contracting Group aimed at accelerating investment in energy efficiency and energy services. The event was hosted by CMS Cameron Mckenna Nabarro Olswang.
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Some simple but searching questions were posed to an expert panel drawn from government, finance, law and energy services. Why do Energy Performance Contracts in the UK appear to be more popular in the public sector than the private? What would help to unlock the huge technical potential for energy efficiency in the private sector? What role could government play? Panellists cited two key factors
that have helped favour public sector energy service company (Esco) deals compared with private in recent years. First was the strength of public sector clients as contractual counter parties, as the industry views EPC deals as being with a counter party rather than a property or site. Second was the structure provided by public processes and frameworks such as the Carbon and Energy Fund, RE:FIT, Essentia, NDEEF etc. Others
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it typically takes three strong drivers for clients to take the plunge, the nature of which will depend on the specific context
pointed out that public sector clients itself that a project has firm support are more likely to accept longer payback at both board and site level before periods and are keen for any form investing significant development time. of additional revenue generation. An appeal was made to government Nonetheless, private sector deals are to help keep energy high up the happening, particularly involving CHP corporate agenda to assist with this. and LED retrofits programmes. These BEIS provided an update on policy projects sometimes go ahead with third related to the EPC market, in which party finance, despite some clients having was noted the large technical potential ample capital to invest themselves and for cost effective measures in the nonattractive payback periods. Why? domestic sector; as highlighted by the Like the private sector itself, the reasons Building Energy Efficiency Study led are diverse and bespoke to the business in by Verco and published by BEIS last question, but Chris Garside of Sustainable year. The government has sought to Development Capital said that it typically encourage investment through various takes three strong drivers for clients to means, such as product standards, take the plunge, the nature of which Building Regulations, Minimum Energy will depend on the specific context. Efficiency Standards (Mees) and tax Garside cited the example of a recent relief. It was commented that the full combined cooling, heat and power project potential is not currently being unlocked for Citibank in and that there is London, which was limited appetite primarily looking for new regulation, for risk transfer, although there is particularly regarding the likelihood of an The Energy Performance project managing the amended version of Contracting Group (EPCG) is contractors. It also the Energy Saving part of Esta – a leading trade wanted the project Opportunity Scheme association for the energy to be off balance (Esos) post-2019. services industry. Energy Performance Contracting sheet and to bring in In summary, it (EPC) – sometimes known as specialist expertise to seems clear that the the Energy Service Company or deliver a technically energy efficiency ESCO route – is often hailed as complex project in industry needs to take a key mechanism to accelerate a business-critical matters more firmly investment into energy projects. environment. Other into its own hands if common drivers the technical potential include meeting energy/carbon targets, for non-domestic energy efficiency the PR value of innovative solutions, is to be realised in the near term. the need for infrastructure upgrade Increasing deal flow and standardisation and keeping the right side of planning of energy efficiency project delivery authorities and regulatory bodies and management (as promoted by such as the Environment Agency. the EU-backed Investor Confidence Many participants noted the risks of Project and recently launched QualitEE private sector decision-making from an project) is part of the solution. Further Esco’s perspective, which is seen to be less collaborative working through Esta’s formal and more based on relationships EPC group is another piece of the than the public sector. The multi-layered jigsaw to help make it happen. te nature of organisations is a particular risk: an executive board will not hesitate If you are a professional involved in to abandon a project at short notice if it delivering ambitious energy services does not fit with current objectives, even if contracts I hope you will join us in the project has been long in development this movement. Dates and locations of and has the complete buy in at site level. future events will be publicised via Esta, For this reason SDCL takes a ‘top down so watch this space and get involved and bottom up’ approach, satisfying by emailing info@esta.org.uk
ESTA’s EPCG
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LIGHTING
Everyone’s a winner A leisure centre operator is set to save nearly £76K after successfully implementing LEDbased solutions at three of its sites in the UK
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ith a reliance on complex and power-intensive building systems, leisure centre operators are continually on the lookout for new technologies that can help to reduce their energy expenditure. Established in 1987, Sports and Leisure Management (SLM) is no exception. For a recent upgrade initiative at three council leisure sites operating under the consumer leisure brand Everyone Active, SLM enlisted the input of leading lighting specialist Energys Group, which is part of its energy management strategy team. In a pattern well-established by previous projects, the Energys team – led by business development manager Raj Gunasekaran – set about researching viable energy-saving solutions
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in order to determine how much money might be saved in the long term. In the wake of a successful deployment of boiler control and valve wrap solutions a few years ago, it was decided that a comprehensive installation of the latest LED-based lighting was the best way to achieve further savings. The new specification was designed by Energys to comply with Sport England criteria, ensuring optimum comfort and efficiency. Financing energy efficiency The upgrade was financed by Energys’ own Pay From Savings scheme, whereby SLM paid 30% of the fee on completion and the remaining 70% from savings. Designed to minimise capital outlay, the saving over the lifetime of the lease
is expected to be in the fairly quick, the benefits are region of £76,000 across destined to be long-lived. the three leisure centres. Designed to incorporate “As with a number of other daylight harvesting, the new leisure complexes in the recent solutions are easily controlled past, the scheme has by staff using a tablet that made it possible for can be pre-programmed SLM to implement to suit requirements these beneficial LEDfor different sports. based solutions, with The end-result has positive results both been a big improvement for the overall cost of in conditions, says the operation and the Chichester contracts comfort of patrons,” says manager Stuart Mills, who Gunasekaran oversees the The projected energy The Westgate and savings at Westgate are installations at Bourne sites. £26,774 and 243,400 kWh, three leisure “The standard with a return on investment of the lighting centres – of just 2.4 years Westgate, is so much Bourne and better now,” David Weir – were completed he says, highlighting in in no more than two weeks particular “the greatly apiece during December enhanced conditions around 2016 and January 2017. the poolside, the lifeguards Yet while the work can now see more easily to itself might have been the bottom of the pool!” te
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LIGHTING
Robust and weatherproof LED Eco Lights has expanded its Goodlight range of energy efficient, lowmaintenance solutions with its GX range of LED replacement luminaires
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ED Eco Lights’ GX range for commercial and industrial lighting is intended to replace old-fashioned HID lighting (SON, metal halide, mercury-vapour etc) and comprises three styles based around functionality. The ultra-bright pendant high bay and low bay
fixtures are designed to ‘flood’ areas with uniform lighting and linear high bay lighting, which can be used more specifically in racking and aisle applications to light up the shelf face and floors below. Unlike metal halide and high-pressure sodium options, which are not good at dimming or short switching cycles, all GX models are fully controllable (dimmable) using the most popular protocols. They can dim up or down based on occupancy or the amount of daylight available, allowing further energy efficiency savings. Goodlight GX1 LED High Bays
Being part of a controllable network means that the GX1 options become more than just a light source, they become a lighting system. They also offer IP65 protection, a 50,000hour lifespan and a wide temperature range operation, making them suitable for use in extreme temperatures. LED Eco Lights sales and marketing director Saima Shafi comments: “The Goodlight range is exceptionally wide, allowing customers to choose an LED luminaire that delivers exactly the right amount and type of light to the right location. Too many lighting projects fail because customers are forced to compromise in their choice. Goodlight GX luminaires switch on and off instantly, making them idea for use with occupancy sensors, Dali and other lighting
Energys learns the art of self-control
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elvar has provided Active+, a self-learning lighting control solution, to the offices of Sussexbased energy management consultancy Energys, helping to reduce energy consumption and create a more flexible lighting control system. “We needed a lighting control solution that could generate significant energy savings, was easy to install and intuitive to use, so Active+ offered the ideal solution, says Energys group managing director Kevin Cox. “We are
52 August/September 2017
delighted with how the system is performing and are already seeing a reduction in our energy bills. With Active+ now installed in our own office, we have the confidence to specify it across a number of large commercial projects.” Active+ is an out-of-thebox standalone solution consisting of an LED driver and Helvar’s smallest sensor yet, Active+ Sense, integrated within Energys’ custommanufactured LED luminaires. The Active+ driver and Active+ Sense work together
control systems. They are fully controllable, and can be dimmed up or down to exactly the level required at any time. The range includes luminaires that can ‘flood’ areas like gymnasiums and factory floors with even illumination, or focus the light on aisles where it is needed.” The GX1 LED High Bay (energy savings are up to 80%) is designed for installations at 6m and above. For installations at greater heights, the GX1 Plus reflectorless version is recommended. For linear lighting requirements, the new GX2 Linear LED High Bay (energy savings are up to 85%) is able to focus the light where it is needed, in aisles for example. Installation is from 4m to 12m. Finally, the GX1 LED Low Bay/Floodlight LED (energy savings are up to 75%) is suited to installations at 4m. te
Energys is already seeing a reduction in its energy bills
learning about the surrounding environment, detecting change in lighting conditions from other luminaires. If the area becomes vacant and human presence is not detected and the lighting is not needed in the environment, the Active+ LED driver and
Active+ Sense send signals to the luminaire to go into energy saving mode. It dims the light smoothly so the change of lighting level does not disturb other people sitting or working nearby. In areas with windows, energy is saved by daylight harvesting. te
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CHP
Putting aftercare to the fore While CHP systems continue to grow in popularity, aftercare all too often remains an afterthought. Bosch Commercial and Industrial’s Carl Main explains the importance of servicing and maintenance in order to protect what often is a sizable investment
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HP systems are becoming increasingly popular due to their cost and fuel efficiency, as well as their ability to help heat networks meet legislation such as the Building Regulation’s Part L and exceed CRC Energy Efficiency Scheme (CRC EES) targets. However, there remains a knowledge gap among some users regarding its proper maintenance and servicing requirements. CHP straddles two disciplines, bridging the gap between traditional space and water
54 August/September 2017
heating and electrical generation. As such, its implementation is often left in the hands of the manufacturers, which can lead to many users feeling daunted by the task of maintaining it. Paying servicing more than lip-service Correct design and sizing during the planning stage is vital if a CHP system is to hit peak performance. However, facilities managers should not underestimate the importance of aftercare and regular maintenance too.
CHP systems operate at their most efficient when they are kept running, due in part to the payback period often outlined at installation. It may sound simple enough but as with any engine a CHP system needs to be regularly maintained to guard against breakdown. In much the same way as the engine of a car is serviced year after year, it is crucial for any size CHP system to be regularly inspected. Oil should be monitored in order to prevent contamination or low oil levels causing long-term damage.
Over time the oil will congeal and thicken as it picks up metal and dirt and will embed into the unit, labouring the engine. A simple service involving a drain and refill can avoid both the unit’s performance being affected and expensive repairs. It is not only the oil quality that needs observation. Service schedules should also include repeated spark plug changes and gas and air filter checks. With use, gas filter and air filters get clogged up and dirty, resulting in the engine not pulling in enough air. Similarly, the Lambda probe,
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which measures CO2, needs to be replaced occasionally in order ensure that the correct levels are being met for the engine to fire. Without these relatively straightforward checks the CHP system may operate inefficiently, unsafely or not at all. All hail the overhaul While general servicing check-ups can help extend the life of the engine, a good and considered CHP service plan will also include some engine overhauls. With such a hard working engine, running 6,000 to 8,000 hours a year at an average of 1,500 RPM, the concept of an engine overhaul
A rebuild of the CHP engine at 44,000 run hours is a wise move should not be alarming, and is in fact just part of the life cycle of the system. For example, our Bosch service schedules see a cylinder head change after 22,000 run hours and then a complete engine rebuild at 44,000 run hours. This approach injects new life into the unit and can keep it running as a long term investment. Plant room practices As well as protecting the technology from breakdown, maintenance and servicing is also necessary in order to maximise the efficiency of the system. Although the larger servicing operations
are often best carried out by the manufacturer or servicing provider, there are plenty of ways facilities managers can ensure a system is running at its most efficient – many of which can be worked into the general maintenance of the building. Like any heating system, water quality will go a long way towards determining the efficiency of a CHP system. Contamination of system water causes restrictions through the plate heat exchanger, which will subsequently cause reduced heat transfer and increased internal temperatures, eventually preventing the CHP from staying on for long periods. On-site water quality management helps to promote a long lasting system and, where necessary, daily checks should be made to avoid dirty water entering the system and damaging it. It is also important to consider whether the return temperatures are too high. This can sometimes be rectified by ensuring other heat sources, such as boilers, are allowing the CHP to take the lead in the controls strategy. A CHP prioritised control system will keep gas costs down and will help keep CHP systems running for as long as possible, allowing the returns that cogeneration is designed for. To that end, facilities staff should have a good general knowledge of the basic controls and functions of the CHP installed. Most service provider technicians will be happy to give training on the fundamentals of CHP so service and maintenance can be at the forefront of any CHP planning. te Carl Main is business development manager – commercial and industrial after sales at Bosch Commercial and Industrial
Like any heating system, water quality will go a long way towards determining the efficiency of a CHP system theenergyst.com
CHP
Let’s level the playing field Remeha adds voice to the ADE’s call for CHP to compete more fairly in the capacity market auction
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emeha has backed the Association for Decentralised Energy’s call to enable combined heat and power to compete more fairly in the capacity market auction. According to the ADE’s Lightening the Load report, the government’s scheme is “failing businesses” because its structure sidelines CHP. By generating power and heat simultaneously, CHP can offer a more energy efficient commercial heating process, especially for buildings that require high and continuous year-round heating loads. Without equal support for the technology in the capacity market, the ADE has warned organisations in the UK could be missing out on savings of £750m a year. Paul Wilson, national sales manager – CHP at Remeha, commented: “While traditional gas plants definitely have a role to play in the capacity market, CHP should be
Widespread adoption of CHP could cut the same amount of carbon emissions as removing one out of every 14 cars from British roads Paul Wilson, Remeha
given equal support via the scheme. When considered in conjunction with condensing boilers to meet additional heat demand, CHP can reduce energy bills by around 20% compared to conventional power generation. What’s more, the ADE has also highlighted that widespread adoption of CHP could cut the same amount of carbon emissions as removing one out of every 14 cars from British roads. “So, if the capacity market is to encourage the provision of low-carbon, reliable supplies of electricity as much as possible, it must be structured in a way that gives CHP a level playing field in the auctions. This would give businesses an incentive to invest in CHP. “Using CHP, these businesses can produce electricity at gas prices, which is approximately 8 pence cheaper per kWh compared to buying it directly from the grid. CHP electricity doesn’t suffer losses resulting from moving power over large
distances, resulting in a more efficient process. Buildings that require high and continuous year-round heating loads can achieve the most energy efficient operation because of their long running hours. “By giving CHP a level playing field in the capacity market auction, it would encourage organisations that could gain a great deal from CHP to invest in the technology and consumers would benefit from a better balanced electricity network and more affordable electricity prices. “Many cities across Scandinavia already utilise highly-efficient energy sources such as CHP plants to power their heat networks. The UK is lagging in comparison. We would urge the government to strongly consider increased support for local CHP systems via the capacity market mechanism to help secure the country’s long-term supply of electricity, while delivering clean and affordable energy for all.” te
Lightening the Load – the benefits Within the Industrial Strategy, the UK government has set twin aims of delivering a decarbonised economy and strengthening the global competitiveness of British businesses. These twin aims, while aligned with global trends, can also create tensions. Decarbonising is, on the whole, a benefit to the UK’s economy, lowering the UK’s energy costs over the long term. However, some elements of decarbonising the economy can result in higher energy costs, which can fall particularly hard on businesses, with business energy costs having risen by as much as 119% since 2004. The cost of delivering a new energy system includes more than just the support for increased renewable and nuclear energy generation. The electricity system must meet the challenge of delivering sufficient capacity, balancing the electricity network on a second by second basis, and adapting and expanding power networks. The capacity market, balancing services and electricity networks add nearly £11bn a year on users’ bills today, making up about one third of all UK electricity costs, and will rise to nearly £13bn by 2021. In addition, meeting these system
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requirements with higher carbon resources can make it harder to meet our decarbonisation goals. While historically CHP plants were built and operated to run all the time, and while some industrial users will always have very limited power flexibility, new CHP plants are able to respond to market signals, providing more generation when needed and less when lower carbon generation is available. CHP enables businesses to provide flexibility, efficiency, and local value, while achieving the government’s strategic energy and industrial policy goals. In addition to its financial benefits, CHP saves carbon as long as it displaces other, higher carbon gas and coal power stations that do not recover their heat.
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HVAC
The EndoTherm debate Vilnis Vesma takes umbrage with Sabien Technologies’ article about EndoTherm in our April/May issue. Here is his objection and Sabien’s reply
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ir, I take issue with Tony Willis’s implication on page 46 of your April/May issue that improved heat transfer on the inner surfaces of heating radiators will reduce the fuel consumption of a building. A building’s net heat requirement under given conditions is fixed and defined by its insulation and air-change values. If neither of these changes, the heat demand will be fixed and so, on the principle of an energy balance, the heat output from the radiators will also be fixed and an increase in internal heat transfer coefficient will result in reduction of circulating water temperature but not of heat flow as such. Complicating this issue EndoTherm reduces the specific heat of the circulating water. This has the opposing effect of increasing the flow temperature, as one then needs a higher delta-T to maintain the required heat output. However, I contend Willis’s argument about ‘microscopic’ cracks. The diagram on page 47 suggests that there is almost no contact between the water and metal surface. This is nonsense: by definition, microscopic cracks in the metal, if they existed, would have an infinitesimal impact on contact area and I would remind him that literature published by the old EndoTherm company (before it ceased trading) cited laboratory tests carried out in Pyrex dishes not metal. I am happy to concede that improved heat transfer will be beneficial but the entire benefit will be manifested within the boiler, where it results in a higher proportion of combustion heat being transferred into circulating water and less going up the chimney; from which it follows that the improvement can be gauged by measuring the reduction in stack temperature. However, I have yet to see a product of this category, whether it be detergent, antifreeze or a supplementary deaerator, validated by means of before-and-after combustion testing, and in any case decent conventional maintenance will ensure that flue temperatures are already as low as it is reasonable to take them. Yours, Vilnis Vesma
Sabien Technologies offers a response to Vilnis Vesma’s letter: There was a former company attempting to promote EndoTherm. Their understanding of the product at that time was limited and that business and associated marketing no longer exits. The manufacturers and owners of the EndoTherm patent have invested in some considerable research in various accredited laboratories since then with a far greater understanding of the ‘EndoTherm effect’ in wet heating systems. More recently a PhD project in the University of West Scotland has started for further work in the development in a family of EndoTherm products. Testing of EndoTherm in accredited laboratories along »
HVAC
By definition, microscopic cracks in the metal, if they existed, would have an infinitesimal impact on contact area
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Optimising hea ting efficiency
The efficiency and reliability of a space heating effectiveness of system are influ the water treat enced strongly ment regime, w to improve heat by the hich may includ transfer. Tony W e innovative ad illis of Sabien Te ditives chnology explai ns Sabien is the exclusive UK distributor of EndoTherm. It is said to reduce energy consumption between 10%-15%
S
pace heating sys tems make a significan t contribution to a building’s energ y consumption an d carbon emissions, so it makes sense to ensure t
improves efficie ncy. The second is a relati vely new water treatmen t additive that further improves the efficiency of heat transfer, resulting in added energ y
system inefficien cies due to reduced heat tra nsfer from the water in the system to the surface of the he at emitters. Improving heat transfer Even in the clean est, scale-free wet heating sys tem there will be microscopic crevices and imperfections on the internal heat exchange sur faces. These effectively create gaps between the heating fluid and the heat exchange surfac e – gaps that the heating fluid is normally unable to enter because of its natural water surface tension. This me ans that the heated water is not always in perfect contact with the inner surfaces of the heat emitters. To address this issue, a heating system additive – Endotherm – red uces surface tension within th
August/September 2017
57
to o
Boi It is to si case wint year
HVAC How Endotherm works – water only (left) compared with Endotherm (right)
with considerable case study data consistently shows up to 15% reduction in gas usage. Each laboratory has released a declaration of product performance to support this claim that we accurately mirror in all our marketing. The last four years have been spent developing and testing the product to establish it within a naturally cynical market. No doubt, a constant barrage of the latest energy saving product can be an issue for those looking for proof of a product truly working. However, none of this information mentioned by Mr Vesma considers supporting information offered with EndoTherm. Our [Sabien’s] technical director Tony Willis actively sought and had a meeting with Mr Vesma to discuss EndoTherm and its benefits. Sabien also offered him the opportunity to accompany engineers to a site to observe the installation and to learn more about its energy saving credential but due to his work commitments he declined Sabien’s offer. EndoTherm has recently been awarded with Energy Saving Trust Verification. (energysavingtrust.org.uk/ business/products/heatingsystem-additives/endotherm)
58 August/September 2017
as well as winning the CIBSE Building Performance Awards: Energy Saving Product of the Year in 2016. Full and thorough audits of the business and product were required to achieve these and other ratifications. Any issues with accepting the science behind the product must only be based on what the product is claiming, not in anecdotal or subjective form. Mr Vesma takes issue with the image (see above) that Sabien Technology used in the article purely to emphasis a point. It is not to scale rather an artist’s impression of microscopic activity. We believe the readers of The Energyst understand that and would not be measuring such a drawing. Micro-cracks are a term used to signify the imperfections in any surface, wood, metal, plastic etc. A product that reduces surface tension is deemed to make the water ‘wetter’ which improves the ‘wetted perimeter’, another name for surface area. It is a fact that EndoTherm reduces surface tension by up to 60%. Mr Vesma concedes that a reduction in stack temperature (flue gas) would indicate an improvement in boiler efficiency. EndoTherm has indeed been proven to do this in both laboratory,
We recognise and support the need to challenge new technologies to ensure only the credible technologies are allowed to prosper
extensive trials and in field. None of this information has ever been requested by Mr Vesma but he has gone some way to explain the positive effects of Endotherm. We recognise and support the need to challenge new technologies to ensure only the credible technologies are allowed to prosper. Mr Vesma is clearly not in possession of any product information – scientific or in use. Testing with Enertek (and others including UCLAN and UWS Universities) along with recognised bodies like CIBSE/Energy Saving Trust have confirmed the product saves energy. This has been supported in tests conducted by RBS/Heathrow Airport/EMCOR UK/Wates Construction along with several local authorities, housing associations, universities and NHS trusts. Why would anyone put off those wishing to save energy from trying EndoTherm? There has been a very strict adherence to what information is released to distributors (and through trade media) to ensure that everything can be backed up with independent evidence. We strongly encourage those who wish to know the facts make contact… at least before making public comment. te
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HVAC
A
ll radiant tube heaters and tube heater systems will be required to have a minimum seasonal efficiency (calculated from radiant efficiency, thermal efficiency and electrical power consumption) of 74% and NOx emissions not more than 200mg/kWh input based on gross calorific value from 1 January. Crucially, these minimum criteria are applicable for both new installations and when replacing existing products. The Ecodesign regulation (EU) 2015/1188 along with the implementing Directive 2009/125/EC is an EU policy aimed at improving the energy efficiency and other environmental performance criteria for energy-related products (ErP), such as gas-fired overhead radiant tube heaters. For this regulation, products have been divided into product groups or ‘Lots’ with gas-fired overhead radiant tube heaters, tube heater systems, and gasfired luminous plaque heaters all contained within Lot 20. Lot 20 provides the minimum energy efficiency and environmental values for each heating technology. Any product that does not comply
Brexit won’t take the heat off ErP compliance The Energy Related Products Directive comes into force in January 2018 but the UK leaving the EU doesn’t mean that compliance is not necessary, explains Nortek Global HVA’s Daniel Wild Nortek’s head office – manufacturers must indicate the seasonal efficiency and NOx emissions for each product or system
with the requirements cannot be marketed and sold within the EU – including the UK. Following the referendum in the UK to leave the EU, all requirements of Ecodesign will still have to be complied with as it could take up to two years to negotiate an exit. Even then, unless new legislation is introduced,
ErP will continue to be one of many methods employed to reduce the environmental impact of heating technology. Unlike other products, gas-fired radiant heaters and some other commercial heating appliances are excluded from mandatory energy labelling under Regulation 2015/1186 as they are directly planned
and purchased by HVAC professionals. However, product literature and free access websites of manufacturers must indicate the seasonal efficiency and NOx emissions for each product or system. Our aim is to ensure that each and every one of our products that are installed results in an efficient heating system that is compliant with the new legislation, while minimising cost and inconvenience to the end user. te Daniel Wild is senior development engineer at Nortek Global HVA
VRF solution for 19th century warehouse
F
ashion brand Zalando required an energyefficient cooling solution for its 19th century warehouse office conversion at Grand Canal Quay in Dublin, FKM Group selected the Panasonic 3-pipe ECOi MF2 AC solution to be installed by Crystal Air. The project needed to be completed with minimal changes to the fabric of the building, with fresh air delivered using ERVs located in the roof space of the building. The Panasonic VRF ECOi MF2 solution offers a compact, space-saving design and low noise levels thanks to
60 August/September 2017
The MF2 range ‘coped brilliantly’ in Zalando’s warehouse office
a casing comprising of two compartments; the upper chamber, which contains the heat exchange and the lower chamber to store the compressors. Additionally, the system allows for a non-stop operation during maintenance.
Ducted units have sufficient fan power to drive warm air from the roof of the warehouse building to the floor, with minimum noise disruption for this large open-plan office environment. “The Panasonic MF2 range coped brilliantly,” said Domnick Ward of Crystal Air. The energy recovery ventilator (ERV) of the MF2 system recovers 77% of the heat in the outgoing air, to deliver a more energy efficient building with the air conditioning load being reduced by approximately 20%. During the summer months the system allows for a purge
during the night, allowing the cooler night air to be present for a fresh start to the day. Adding to the efficiency of the system, the number of ERVs running at any one time can be reduced depending on the number of people occupying the space, for example, during lunch times. The system has a centralised controller that acts as a master scheduler, allowing full management of the entire space. In addition, each area within the space is fitted with ECO NAVI detectors to automatically reduce the energy consumption when rooms are unoccupied. te
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HVAC
HPA expresses disappointment following further delays to RHI reform The Heat Pump Association has expressed its disappointment and frustration following news that the delay in bringing in the vital Renewable Heat Incentive (RHI) reforms will now extend beyond the summer. The overdue reforms have suffered a number of delays and setbacks due to procedural formatting issues and the snap general election and subsequent changes to government have altered the delivery time frame once more. Mike Nankivell, president
of the HPA, comments: “This prolonged process of reform could potentially damage the renewable heat industry, creating uncertainty and confusion over tariffs in both domestic and non-domestic markets. “Although we are once again left frustrated by the delays, we recognise that when the changes are finally implemented there will likely be a silver lining in the form of significantly improved tariffs. In addition, any installations registered from 12 December
Radiant light warms church
Tansun has replaced the inefficient underfloor heating system at St Michael’s Church in Wolverhampton with infrared heaters, saving more than 75% in energy costs. The church’s previous underfloor heating had to be switched on three days before Sunday service. This meant that in the winter months the heating system had to be turned on at midday on Thursday so that the church would be warm enough for the Sunday service. Tansun’s Apollo infrared space heaters were chosen for the church as they were powerful enough to heat large buildings with high ceilings. Tansun offers a range of bracketry so the space heaters could be mounted at the appropriate angle to warm those below. The church now only has to turn on the infrared heaters
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2016 up until the new regulations are introduced will not be subject to heat demand limits but will be eligible for any improved tariffs, allowing operators to maximise the potential of their systems until the changes come into force.” The RHI is an incentivised scheme designed to promote the use of renewable heat and help the UK reduce its carbon emissions in line with EU energy targets. Initially introduced for non-domestic installations in November
2011, followed by the domestic scheme in April 2014, those who successfully join the scheme can expect to receive quarterly payments for 20 or seven years respectively. The Department for Business, Energy and Industrial Strategy is expected to provide an update on the proposed reform following Parliament’s summer recess. The HPA will continue to support the overall objectives of the RHI and is on hand to advise BEIS when needed.
Get ahead before 2018 legislation changes
when the heat is required, enabling it to save a 79% per annum on its heating. The figures below show the heating costs for the church for the same period before and after installing the Tansun Apollo infrared space heaters. All the figures are data provided by Saint Michael’s Church. Old system
New system
Sept: £29.95 Oct: £388.36 Nov: £168.17 Dec: £1546.15 Jan: £404.69 Feb: £1050.43 Mar: £707.81
£6.49 £44.00 £92.67 £254.77 £243.23 £153.27 £95.33
Total: £4,295.56
£889.76
British manufacturers are being urged to ‘get ahead’ and upgrade their process cooling systems in the run up to planned changes to the Ecodesign Directive, which come into effect from 1 January 2018. The new benchmark for an industrial process chiller will be its seasonal energy performance ratios (SEPR). Minimum SEPRs is calculated as the ratio between the annual refrigeration demand and its annual electricity consumption. With process cooling and refrigeration systems currently typically accounting for 60% of a plant’s total life-cycle cost, inefficient chillers can contribute to highly inflated utility bills which will ultimately impact on the company’s bottom line. Richard Metcalfe, sales director at ICS Cool Energy, comments: “For example, a high temperature
air-cooled chiller with a power rating of <400kW must have an SEPR of 4.5; and those with a power rating >400kW will need to have an SEPR of 5. “Come January 2021, these requirements will become even tighter, changing to minimum SEPRs of 5 and 5.5 respectively. “As such, many of the industrial cooling products currently in operation today will not meet the 2018 requirements. While manufacturers are not obliged to remove preexisting non-compliant chillers, the long-term cost of running them is likely to be far greater than investing in a high-efficiency solution given the energy savings it is likely to bring.”
The Tansun Apollo space heaters come as standard with three-phase wiring built into the heater, and are available in power configurations of 6kW and 9kW all the way up to 12kW.
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BUILDING CONTROLS
Win for control project Entech has scooped the Commercial Installation of the Year category at the 2017 KNX Awards with a solution that should pay for itself within 18 months
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anchester-based integrator EnTech has won the Commercial Installation of the Year category at the KNX Awards for City View, a multimillionpound development in the heart of Sunderland. EnTech helped transform empty offices into mixed-use student accommodation, office and retail space with a solution built on KNX, the open standard in building controls, that effectively should pay for itself within 18 months through energy cost savings. Developed by SSG Properties, a joint business venture between north-east property developers Grayson Properties and Union Properties, this 88-room scheme features a range of penthouse and studios together with three, four, five and sixbedroomed flats above ground floor office and retail units. SSG challenged EnTech to create a comfortable, safe and efficiently controlled environment for the building. EnTech reviewed an earlier
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SSG student development and designed a bespoke, fully benchmarked system. The company deployed KNX to provide the entire field level control and data provision for City View’s BMS, regulating and monitoring lighting, electric panel and towel rail heaters, heat recovery and fan ventilation and electric domestic hot water services. All control data on occupancy, lighting levels, internal room temperature and ventilation are fully integrated with each other and within the BMS to influence plant control decisions, building-wide and local room KNX control decisions. “We programmed for all the field services off site to enable a quick commissioning process and meet the tight project deadlines,” comments Jon Payne, business development and management at EnTech. “Being able to bench test with ABB to prove all operations prior to onsite delivery, and then programming in this way, speeds up the process considerably. The whole
project was commissioned in three months. The client was pleasantly surprised, especially considering the sheer amount of devices controlled. This KNX solution has been developed to achieve 42% energy savings against traditional BMS in line with BS EN 15232 rating A.” Using an ABB i-bus KNX solution, EnTech achieved installation and space efficiencies by incorporating KNX within ABB’s power distribution system. All required control components were fitted within available space in the electrical consumer units, reducing installation
This KNX solution has been developed to achieve 42% energy savings against traditional BMS in line with BS EN 15232 rating A
time and costly control panels. All KNX relays for the lighting and panel heaters have built in current transformers, so energy usage can be monitored on an individual circuit basis across the site. Meanwhile, alarms link to fire and security systems, enabling an email to be automatically sent to the operator if any triggers are recorded which eliminates the need for a manned station in the building. ABB’s KNX Busch-presence mini premium KNX detector is one device that controls both lighting and room temperature to reduce system costs significantly across the site. Its tight detection coverage makes it ideal for absence detection while its light sensor provides constant light switching and day-light harvesting. All panel heaters, ventilation and MVHR units are controlled by the KNX system. Each unit was enabled via the activation of a push button then disabled using absence of presence via a PIR. The MVHR is boosted when presence, humidity and temperature meet a certain criteria within the kitchen and bathroom spaces. If no presence is detected for a 24 hour period, all systems on a local area basis are entirely disabled. Alarm, data display and monitoring functions are visualised remotely on one completely integrated building BMS head end for quick and easy access and decision-making. A bespoke integration page developed between KNX and BACnet ensures fault finding and repair is straightforward without the need for system users to have engineering knowledge of both protocols. te
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Alleviate the fiscal barriers to energy efficiency Obtaining finance for energy efficiency projects has always been an issue in the public sector, where cash is tight. Salix Finance is able to help and highlights some of the successes it has achieved in the healthcare sector
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here is considerable potential within publicsector organisations to make substantial energy spend and carbon emission savings through the installation of energy efficient technologies. Simple measures such as upgrading inefficient heating, lighting and ventilation equipment can provide significant long-term financial and maintenance savings for organisations as well as huge reputational gains for them taking action on their carbon footprint. Such energy-efficient technologies are readily available, tried and tested, and often repay their initial capital cost within just a few years, thereby increasing available revenue, leaving public sector organisations with money to use in other areas. However, despite the
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strong case for investing in energy efficiency, there is a lack of available budget to finance the investment of energy efficient projects. The Energyst has consistently found it to be the number one barrier to implementation in market surveys. Fortunately, there are numerous avenues for carbon reduction funding programmes if internal money is not accessible. Various bodies and schemes, including government loans, are available to support public sector organisations and help them to overcome the limitations that access to finance can present. Such funding can be obtained via companies such as Salix Finance, a not-for-profit, government-funded organisation that provides 100% interestfree loans to the public sector for energy efficiency projects.
Funded by the Department for Business, Energy and Industrial Strategy, the Department for Education and the Welsh and Scottish governments, Salix is dedicated to improving the UK public sector’s energy efficiency and reducing its carbon emissions and energy bills. Salix funding is available to public-sector organisations wishing to pursue energy efficient upgrades, including councils and schools, NHS trusts and foundation trusts, to universities and colleges. The loans are provided for energy efficiency measures, subject to meeting certain criteria, which include set payback periods for projects and costs per tonne of carbon saved. More than 130 technologies are supported, covering everything from combined heat and power (CHP), heat recovery, LED lighting upgrades,
boilers and building energy management systems (BEMS). To date, more than 15,500 projects with 1,700 public sector organisations have been supported by Salix, which are estimated to have saved the sector more than £136m and reduced carbon emissions by about 694,414 tonnes annually*. The NHS sector forms a large proportion of the projects that Salix supports, with 58 trusts and foundation trusts across England having capitalised on the funding potential unlocked by Salix since the NHS funding programme began in 2007. Northampton General Hospital NHS Trust is just one public sector organisation to have benefitted from Salix’s interest-free finance. Since 2009, the trust, which provides acute care for Northamptonshire, has invested more than £1.6m
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FINANCE programme to replace lighting and install lighting controls across Northampton General Hospital, resulting in significant energy and carbon savings. Specifically, lighting in stairwells that were lit 24/7 have been replaced with more energy efficient alternatives, while sensors have been
into multiple energy efficiency projects as part of an extensive programme to reduce its energy spend and carbon emissions. The improvements, including upgrades to the building energy management system, insulation, motor controls, swimming pool covers, lighting upgrades and window replacements, have generated annual savings of about £539,000, paying back the upfront investment in just over three years. Notably, more than a third of the trust’s investment has gone towards a rolling
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installed in areas with low operating hours to allow for further reductions by switching off lights automatically when they are not needed. All of the trust’s lighting upgrades alone are set to save the trust more than £179,000 a year. Similarly, significant savings were achieved by increasing the area that the existing BEMS controlled, resulting in a 35% reduction in heating demand. As well as installing a system to constantly monitor and control energy use across the hospital, fitting a swimming pool cover
has also reduced heat loss by 340,000 kWh per annum. Salix interest-free loans have so far been used to implement more than 20 projects, which in total, are set to deliver lifetime energy spend savings of an estimated £7.8m as well as reduce the trust’s carbon emissions by approximately 32,000 tonnes*. Clare Topping, energy and sustainability manager at Northampton General Hospital NHS Trust, says: “The loans from Salix have allowed us to access energy efficiency measures sooner than would otherwise be the case. Not only has this helped to keep
work closely with Salix in the coming years to install LED lighting across our wards and achieve further savings.” Most recently, Poole Hospital NHS Foundation Trust is estimated to have saved about £292K a year and significantly reduced its carbon emissions thanks to an innovative energy reduction project completed with the support of Salix Finance. The trust has used a £1.4m loan to invest in a new CHP engine as well as car park lighting upgrades across its estate. Replacing two smaller CHP units with a new 850kWe trust an estimated £262k each year, while also improving their heating system’s reliability. Across the car parks, the trust replaced 627 fluorescent luminaires with 466 low-energy LED luminaires and installed daylight and movement sensors to reduce the running hours. In total, the upgrades are expected to generate approximately £4.5m of savings over the lifetime of the technologies. By planning ahead and acting now, public sector organisations have the potential to significantly lower their NHS trusts and energy spend and meet their foundation trusts funded by Salix in environmental responsibilities by reducing carbon emissions. partnership with With the help of organisations BEIS. *Figures as of such as Salix, public sector April 2017 organisations can alleviate Source: BEIS the financial barriers to energy efficient technology implementation and capitalise on the endless benefits that us on track in achieving our these will provide. te 2020 Carbon Target but we have also improved the *Calculated using emissions factors physical environment for published by government in 2015 staff, patients and visitors. for carbon footprinting purposes “The trust is looking to Salix Finance provides 100% interest-free loans to public sector organisations to enable them to invest in energy efficient technologies, such as lighting upgrades, to cut carbon emissions and energy bills. Raising the capital necessary for the installation of energy efficient technologies is a huge barrier for many public-sector organisations. For more information about the Salix Finance loan scheme as well as further details on the projects Salix has worked with, please see salixfinance.co.uk
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Calculating waste heat recovery Lionel Macey, founder and technical director of UK-based industrial waste heat recovery and gas cooling and cleansing systems specialist ThermTech, provides an insight to calculating and understanding waste heat and highlights the benefits companies can expect
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ndustry now lives by the mantra of seeking efficient energy use. Businesses with processes demanding high energy consumption should be looking to improve energy efficiency and minimise waste. Increasingly, industrial plants are looking at heat recovery methods as a means to improve energy efficiency and sustainability of their business. A substantial reduction of energy costs used to heat water in a steam boiler can be achieved by applying a custom designed gas-to-water heat exchange system. Purpose designed and installed around the gas flue outlet of an existing steam boiler, the spent gas is exchanged and used to heat water. The heated water is added to the incoming mains water feeding
the boiler. The resulting increase of inlet water temperature reduces the boiler energy required to produce steam. Why heat recovery is important Energy efficiency is a constant challenge for industry. Globally accepted and recognised by many as a requirement, best business practice dictates that ways to improve operating efficiency should be sought out. In the short term the benefit of achieving this reduces fuel bills and hence operating costs; in the long term global carbon dioxide emissions are reduced. Most industrial processes require energy to run, however only a portion of the energy input is used for each process. The remainder of the unused energy is rejected to the environment,
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INDUSTRIAL ENERGY Q = S V ρ Cp ΔT Q = Waste energy flow rate (kW/hour) S = Cross sectional area (m2) of waste flow pipe/ducting V = Flow velocity (m/sec) ρ = Media density (kg/m3) Cp = specific heat constant of the media (kJ/Kg.°C) ΔT = Temperature difference (°C)
usually in the form of heat, either in gas or liquid form. It is possible to recapture most of this energy through waste heat recovery. This energy can become the energy source for three general applications; thermal heating, electricity generation and cooling. The heat is either reapplied to the same process it was originally generated for, or used for a different process in the plant. Calculating waste heat flow Knowing the total heat flow rate from the waste stream allows the potential value of this heat to be determined. Hence the capital project cost can be calculated and a decision made if the project makes economic sense. The following formula determines if sufficient volume is available for waste heat recovery.
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‘Q’ from the calculation above is the theoretical maximum flow rate of waste heat that in a perfect system is available for recovery. However, not all of this waste heat will be recovered. Calculating the optimal value for ‘Q’ requires additional details of the current installation such as; precise temperatures of the inlet and outlet water or gas and location of process pipe work of the waste heat source, in relation to the possible installation location of the waste heat recovery equipment. Converting waste heat to an efficient type of energy storage media, such as water or thermal heat transfer fluid, at the earliest opportunity will reduce heat losses and enable the waste energy to be moved effectively from its source to where it will be applied. In the majority of applications waste heat will be in the form of gas, which is an inefficient energy storage media due to the rapid energy losses. Energy in gas form has a heat constant approximately 10 times less than that of a liquid, with the effect that energy absorbed by air dissipates 10 times quicker. Therefore, by converting gas heat to liquid heat, the liquid will retain heat for 10 times longer.
Converting waste heat to an efficient type of energy storage media will reduce heat losses and enable the waste energy to be moved effectively from its source to where it will be applied business rules do apply. A heat recovery project needs to either reduce energy costs at current productivity output, or look to increase productivity with current levels of energy spending. In order to establish the cost benefits a company will achieve, justification should be sought in terms of comparing energy costs of the existing process before heat recovery and the calculated costs after a heat recovery system has been installed. In all waste heat recovery projects, the heat recovered will displace a medium, such as steam, which would have to be generated using another piece of equipment, such as a boiler.
This equipment likewise has a related efficiency, and the heat output is always less than the heat input. To determine the monetary value of the waste heat stream, use the equations below. Value = Q x unit cost Value = monetary value per hour of the waste heat stream Q = maximum waste heat flow in kW/hour (previously calculated) unit cost = unit cost of the waste stream in ‘Currency’ per kW Unit cost = Fuel cost / Efficiency Unit cost = ‘Currency’ per kW fuel cost = cost for fuel used in currency per kW Efficiency = efficiency of unused equipment (For example, a steam boiler @ 75% = efficiency 0.75) Achieving the best results The engineering behind heat recovery systems is quite complex and companies should approach experienced and trusted partners to develop a project. Defining the ROI and determining the feasibility of the project is important before going ahead. With the right design and the application of sound engineering, it is possible to implement a waste heat recovery system that will benefit the business for many years. te
A ThermTech boiler flue gas economiser pre-heats the boiler feed water by using the heat in the flue gases
Calculating project cost from waste heat flow Business practice defines that the return on investment is the key decision criteria as to whether a project will go ahead. The recovery of heat is no exception and while on the surface you could view any reuse of spent energy as a bonus to the ‘green credentials’ of a company and its environmental impact,
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TECHNOLOGY
Resolution matters Flir explains how to go about choosing a camera for thermal imaging
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ata centre systems’ failures are costly, not just in terms of revenue loss but also company reputation and shareholder value. A popular method for detecting these faults is thermal imaging. These range from pocket-sized models and infrared-enabled smart phones to low-cost point-and-shoot troubleshooting cameras and high-end models with every function necessary for the professional thermographer. So how do you assess the best model for your needs? Buy the best you can afford Most thermal imaging cameras have fewer pixels than visible light cameras, so pay close attention to detection resolution. Higher resolution infrared cameras can measure smaller targets from farther away and create sharper thermal images, both of which add up to more precise and reliable measurements. Also, be aware of the difference between detector and display resolution. Some manufacturers will boast about a high-resolution LCD
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to mask their low-resolution detector when it is the detector resolution that matters most. For instance, LCD resolution may spec at 640 x 480, capable of displaying 307,200 pixels of image content but if the IR detector pixel resolution is only 160 x 120, giving 19,200 measurement points, the greater display resolution accomplishes nothing as the quality of the thermal image and its measurement data are always determined by detector resolution. As well as clarity of image for effective problem diagnosis, resolution is very important from a safety perspective. For electrical inspection, there is no point in buying a low-priced, low-resolution troubleshooting camera that can only give you a clear image when it is six inches away from the target. Accurate and repeatable Consistency of measurement accuracy is a very important factor when determining the value of a camera. For best results, look for a model that meets or exceeds ±2% accuracy and ask your supplier for details of how they assure the
manufacturing quality of the detector to guarantee this. That is not the only criteria, however. In order to produce correct and repeatable results, your camera should include in-built tools for entering both values for emissivity – the measure of efficiency in which a surface emits thermal energy – and also reflected temperature. A cabinet may be hot in the thermal image but its shiny surface could just be reflecting the heat from overhead lighting or indeed the body heat generated by the camera operator. Other helpful diagnostics to consider are multiple moveable spots and area boxes for isolating and annotating temperature measurements that can be saved as radiometric data and incorporated into reports.
For best results, look for a model that meets or exceeds +– 2% accuracy
Standard file formats Many thermal imaging cameras store images in a proprietary format that can only be read and analysed by specialised software. Others have an optional JPEG storage capability that lacks temperature information. Clearly, the most useful is a format that offers standard JPEG with full temperature analysis embedded. This allows you to email IR images without losing vital information. Radiometric JPEGs can also be imported from wi-fi compatible cameras to select mobile devices using apps that allow further image editing, analysis and sharing. Also look out for models that allow you to stream MPEG 4 video via USB to computers and monitors. This is especially useful for capturing dynamic thermal activity where heating and cooling occurs rapidly and for recording motorised equipment or processes in motion. Some cameras feature composite video output for cabling to digital recorders while others include HDMI outputs. And new mobile applications have also been developed that allow streaming video over wi-fi. All these capabilities help you share findings more effectively and enhance your infrared inspections and reports. Software, study the options Today most thermal imaging cameras come with free software so you can perform basic image analysis and create simple reports. Advanced software for more in-depth and customisable reports is also available, allowing you to take full advantage of your camera’s capability and features. Investigate these tailored software programmes thoroughly to see which makes the most sense for your needs. And finally, do not underestimate the importance of training. The best thermal imaging camera in the world is only valuable in the hands of a skilled operator. te
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COMPRESSED AIR
Check your supplier Survey reveals poor service when using non-BCAS members
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survey of compressed air end users reveals that a significant number of those not using BCAS members experience problems and 19% cent could be left non-compliant with health and safety and environmental standards. When asked about legal compliance, or more specifically whether “they help us meet environmental and health and safety standards”, 19% of those using non BCAS members rated them as either 0 or 1 out of 10 and a further 19% only rated them between 2 and 5. In contrast, of those using BCAS members, 49% scored their supplier either 9 or 10 out of 10 and a further 34% scored them between 6 to 8. Of the rest, no one scored a BCAS member lower than 4. Vanda Jones, executive director of BCAS, says: “Having confidence in the correct specification, installation and subsequent maintenance and service of compressed
air systems is vital to avoid downtime, save energy and ensure safe operation. We were expecting the results to show that compressed air users were happier with BCAS members for equipment, supply, service and maintenance, but what surprised us were the number who were dissatisfied with the quality of installation and service received from non-members.” More than 100 compressed air users were asked to rate their suppliers across a number of factors and also whether or not they used a BCAS member for equipment and maintenance.
Having confidence in the correct specification, installation and subsequent maintenance and service of compressed air systems is vital
The survey showed that BCAS members scored better satisfaction ratings across all of the factors measured and also that there was wide spread dissatisfaction for those using non-members for supply and service. Continues Jones: “Being a BCAS member means that you sign up to a strict code of practice. Our members are also fully updated on the latest legislation and standards as they happen and have full access to our technical help and advice. As responsible companies, they also train their staff regularly, often accessing our full suite of training courses. When asked about value for money, BCAS members achieved an average satisfaction score of 9.11 out of 10 compared with 7.46 for non-members. te A report detailing the results from the survey can be downloaded from BCAS’ website at: bcas.org. uk/news-and-events/compressedair-supplier-review.aspx
Mattei claims life cycle cost analysis is flawed
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new white paper by Mattei has highlighted the inaccuracies of the current life cycle cost (LCC) calculation for air compressors. Penned by CEO Mattei Giulio Contaldi, the white paper challenges the present method of calculating LCC, contending that the assumption of constant compressor efficiency throughout the life of the unit is incorrect. The core issue lies in the differences between rotary vane and screw compressors, and the respective wear to
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these units over lifespan. Essentially, although a screw compressor off the assembly line will sit within the manufacturer’s verified zero hour specific energy performance guideline, once it begins running, a process of wear will begin on both its roller and thrust bearings, leading to a loss of efficiency over time, and a life cycle cost far removed from initial estimates. While performance does not remain constant for a rotary vane compressor either, this is because the efficiency of these
units actually improves over an initial running in period. Rather than experiencing damaging wear, the blades of a rotary vane compressor undergo a polishing process during use, which results in less friction, and consequently, better operation and reduced energy requirement. Therefore, assuming that a rotary vane compressor may share the same zero hour specific energy as a screw model, although in reality the zero hour specific energy of a vane compressor is often better, the LCCs
will vary significantly between the two. Andy Jones, managing director at Mattei, comments: “Mattei aims to change the way life cycle costs for compressors are calculated, to ensure that decision makers have a clear view of the difference between zero hour performance and accurate life cycle costs. A recent report produced by Engineering the Future cited energy efficiency as the single most important area for the government to focus on in its industrial strategy. te
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COMPRESSED AIR
Sucking up wasted energy Atlas Copco’s large vacuum pumps are capable of halving central vacuum supply energy costs
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tlas Copco has extended its range of variable-speed driven vacuum pumps with the addition of three models offering flow rates of up to 5004m³/h. The GHS 3800-5400 VSD+ rotary screw pumps are particularly suited for large industrial vacuum users in the UK’s glass, plastics, canning and food packaging industries. Companies in these sectors stand to reduce their energy consumption by up to 50% if they upgrade their existing centralised vacuum systems or switch from using multiple, decentralised point-of-use pumps to a central vacuum system based on one or two superefficient GHS VSD+ machines. Richard Oxley, vacuum product manager for Atlas Copco in the UK, comments: “We see massive potential for further adoption of this technology in
the UK and predict that the vast majority of large vacuum users in associated industries, potentially in excess of 90%, could stand to halve the energy consumption of their industrial vacuum systems as a result. To ease the transition to a central vacuum system we’re offering free vacuum energy audits to new customers and a 30-day no obligation trial of the technology on certain models.” Oxley adds: “To illustrate this, I recently visited a company in the food packaging industry that we predicted could save in excess of £16,000 a year in energy costs by replacing their existing centralised system with a smaller number of GHS VSD+ pumps. Following this, an independent energy auditor was brought in to verify the results, while the pumps were on trial, who further upgraded the potential savings to the region of £20,000 a year.” When installed as part of a
50% Potential energy saving companies can achieve central vacuum system, GHS VSD+ pumps can be used to precisely tailor vacuum production to meet customers’ demand. All the pumps are equipped with Elektronikon controllers that can be integrated into a process control system and also control other manufacturers’ vacuum pumps. They are also fitted with a Smartlink remote monitoring system and variable speed drive, making them economical to run.
Atlas Copco’s GHS VSD+ pumps can be used to precisely tailor vacuum production
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Additionally, the pressure set point control function ensures the pumps deliver the lowest possible vacuum flow with which the required vacuum can be maintained. As a result, no excess energy is wasted and life-cycle operating expenses are significantly reduced. “The payback period for a converted system is extremely short,” claims Oxley. “The new units deliver more cubic metre per hour, per kilowatt than any other vacuum pump of comparable capacity.” The cooling system is equipped with an electronic thermostatic valve that accurately controls the oil temperature. Consequently the oil retains its optimum consistency, as any entrainment of water to the oil cycle by condensation is avoided. The cooling system also operates with a speed-controlled fan to minimise energy requirements. The vacuum pumps in the GHS 3800–5400 VSD+ series are available with water or air cooling. Optional energy recovery components can be integrated into the system, allowing users to recover a large amount of the heat that is unavoidably generated by compression without sacrificing pump performance. Atlas Copco reports that recoverable energy levels of about 75% are possible in some applications. Energy recovery also keeps heat release in the vicinity of the units to a minimum. This means that air conditioning systems are not needed for nearby work stations, which is especially important in food packaging environments. te *Maintenance of the screw element is recommended at approx. 48,000 operating hours
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WATER MANAGEMENT
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ow many businesses have chosen to take the plunge – so to speak – and actually switched their water supplier? The latest figures published by MOSL, the market operator for the new market, hold some interesting insights. More than 36,000 supply points have switched their water retailer since the market opened – so during a four month period. Fascinatingly, the bulk of that activity has been driven by smaller business users, with 60% of switchers using less than 1,000 litres of water a day. It is interesting that while there was some challenge within the industry that the financial incentives were not big enough to encourage
MOSL’s figures showed that 95% of the switches that have happened so far have seen businesses combining or keeping both of these services with a single retailer
Taking the plunge The opening up of the water market in England has been a hot topic for some time but are firms actually switching supplier, asks Inenco water projects manager Chris Tarr most businesses to move supplier, it is the most time-poor consumers that have switched – those that are so frequently labelled ‘apathetic’ by suppliers. At the other end of the market, 4% of the largest water users have also switched; those that use more than 13,700 litres of water per day, and anecdotally it is thought that many larger businesses have taken the opportunity to renegotiate their contract with their existing water supplier onto improved terms. So why switch? Those that have changed supplier or renegotiated the terms of their contract may notice a
small reduction in their water costs, although we do not expect discounts to be any higher than around 2-4% until the next pricing round. However, if businesses are given support with water efficiency then they could see a more significant fall in their costs. Many businesses will also appreciate the opportunity to have a single retailer for both their water and wastewater services – in fact this should help businesses to cut down the admin time they previously spent reviewing and paying multiple bills, as many suppliers are now offering a single bill solution.
There is significant scope for businesses to reduce their water costs by reviewing existing suppliers, tariffs and commercial arrangements. When we helped a Premiership football club to renegotiate their water contract with their incumbent supplier, to ensure they were on the best possible tariff, they reduced water costs by £23,000 in the first year. We also conducted feasibility studies for the club for efficiency initiatives including rainwater harvesting and greywater recycling, which would enable them to further reduce water consumption in the future. te
Water retailers invited to serve dining group
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estaurant operator Casual Dining Group is seeking a water retail partner to supply water and wastewater services across its existing portfolio and provide support with its water programme through a competitive tender process that goes live in August. Casual Dining Group is one of the UK’s largest and fastest growing independent restaurant companies, operating nearly 300 restaurants, employing more
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than 10,000 people and serving more than 20 million meals each year right across the UK. Its brands include Bella Italia, La Tasca, Café Rouge and Las Iguanas. Paul Boyce of Prestige Purchasing, which works on behalf of Casual Dining Group, said: “We watched the development of the open water market with interest and decided to wait for the market to settle down so that we could make an informed decision on our water
Casual Dining Group likes the idea of working with a single water retailer
supply options. While our final procurement strategy hasn’t yet been decided upon, we like the idea of working with a single retailer for all our water needs. “Our main goal is to identify and take advantage of cost saving opportunities and streamline internal administration practices.” Waterscan is assisting Casual Dining Group with its water strategy and is managing the tender process on its behalf. te
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Business water retailer toasts first birthday with new contracts worth £45m Business water retailer Water Plus has won contracts worth more than £45m since the opening of the non-domestic water market in England on 1 April. The company, a joint venture between FTSE 100-listed United Utilities and Severn Trent, has also saved businesses that switched to it more than £1m, since the start of April. In water efficiency work, Water Plus has saved organisations more than 800,000 cubic metres (800 million litres) of water – enough to fill 339 Olympicsized swimming pools. Water Plus announced the figures as it marked its first birthday in June – a year on from when United Utilities
and Severn Trent Water secured permission from the Competition and Markets Authority to create a company specifically designed for the new business water market. Water Plus has won contracts to supply water and wastewater services, including account management, billing, meter reading and water efficiency advice, for organisations that have sites across the UK. Sue Amies-King, chief executive of Water Plus, said: “It’s early days in the new water market in England but we are happy with the levels of activity we’ve seen so far and that businesses are choosing us as their partner in water retail and water management. “We have designed our
Business Stream lands trio of airport deals AGS Airports, which incorporates Glasgow Airport, Aberdeen International Airport and Southampton Airport, has signed up to new water supply and waste water services contracts with Business Stream. The two Scottish airports are renewing their contracts while Southampton Airport is a new contract following the opening of the English retail water market in April, which enables all businesses to switch their supplier. The contracts will run for three years and will allow the airports to benefit from Business Stream’s dedicated account management service, providing day-to-day expert Glasgow Airport will benefit from a dedicated account management service
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support and 24/7 emergency assistance, if required. Glasgow Airport’s new three-year arrangement will also involve the installation of automated meter readings to track water consumption and leak detection surveys to help reduce the airport’s water use. Maureen Jamieson, group head of procurement, said: “Business Stream’s services and account management support allow us to manage the airport’s water systems smoothly and efficiently. We’re also taking advantage of their technology and expertise to identify and manage opportunities for cutting water use.”
operation and approach with business customers in mind right from the start. We are the largest retailer in the market and our scale has allowed us to invest in technology so we can provide what our customers need and to make dealing with water bills straightforward. Our systems are all cloudbased which means we are agile and can respond quickly to changes in the new water market. There’s been a good reaction across business sectors to our offer and what we can do for businesses.” The water retailer, which employs 400 people, has created a water efficiency app, designed by water experts, to help businesses identify where they could make savings on the water they use.
Speaking about the new water market, AmiesKing said: “It’s an exciting change which will drive an improved range of services for businesses across the UK. Charges are unlikely to vary dramatically but service and water management support will. So choosing a partner that can work with you to save time and to add value is important. “In our experience, time and money savings can be made across all businesses and organisations – from the corner shop, to a school or a large manufacturing business with complex water or wastewater processes. There are a number of ways to save on costs, reduce consumption and reduce administration.”
AMR system saves college £30,000 An automatic meter reading (AMR) system from HWM has helped Okehampton College in Devon save £30,000 on its annual water bill. “A few years ago, our water bill was £50,000,” explained Keith Webber, technology coordinator at Okehampton College. “Last year, it was £20,000. The logger has made a huge difference to our awareness of how much water we’re using.” The college’s datalogger is HWM’s MultiLog LX GPRS, which uses an external battery pack for advanced call frequency. The unit sends flow data every 15 minutes to HWM’s cloud-based server and then forwards that data to Pennon Water Services’ graphing system, Business Accounts Online. The data is also displayed via HWM Online, a customer portal for graphing and site management purposes. Webber used the example of a single tap left running
during a holiday period to illustrate the benefits of the AMR system. On that day, the college’s online interface showed a spike of £100 in water consumption, while electricity for an immersion heater also jumped by 3kW. As water and electricity use increased simultaneously, Webber could identify which one of 12 buildings the tap was located in. Webber said: “The hot tap had been on for 14 hours but the electricity for the immersion heater cost something like three pounds. You think the electricity’s the expensive bit but actually it’s the water.”
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PRODUCTS
Energy management explained Although Hive House’s publication of the third edition of Vilnis Vesma’s guide to Energy Management Principles & Practice is referred to as introductory, it offers something for all readers whether experienced or novice. The book covers a wide range of topics – from air conditioning to zone control via combustion, controls, insulation, motors, lighting and other common technologies. The technical content is complemented by chapters on procedural and management issues and
opportunities; and there is even a chapter of basic science revision for those who need it. The guide acts as a comprehensive overview of what to areas to bear in mind when managing energy and takes you through the basic methodologies and prionciples involved. Considerably extended and comprehensively revised with more illustrations and an index, the book has a foreword by Louise Kingham, chief executive of the Energy Institute. Despite the change of publisher from BSI to
believes that it will prove very useful to Esos participants who would prefer to file their own submissions under the current phase of the scheme rather than pay for external energy audits. Chapters that move away from the basic engineering and energy saving technologies include behavioural change in raising awareness and motivation, selecting and briefing consultants, making the case for capital projects and evaluating savings achieved. Hive House, it remains an indispensable companion to ISO50001 and the author, who is also an ESOS lead assessor,
‘Energy Management Principles & Practice’: ISBN 978-1-99976750-1 is available at £16 plus P&P from hivehousepublishing.co.uk
PIR for outdoor luminaire integration
Calor offers free LPG tank installation for rural businesses Calor is offering a free liquefied petroleum gas (LPG) tank and pipework installation to encourage energy specifiers advising rural, off-grid businesses to upgrade from oil to cleaner and more cost-effective LPG. The offer is available immediately, with organisations currently using oil, solid fuel or electricity eligible to receive a free, above-ground LPG tank of up to 4,000 litres, complete with professional installation, a concrete base and groundworks, and up to 10m of pipework with underground moling at no additional cost.
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Businesses that would prefer their tank to be hidden from view can pay £1,500 for a single underground tank installation of up to 4,000 litres, which includes excavation works and 10m of pipework with underground moling. Calor will also backfill and reinstate the ground. This latest offer will help off-grid organisations save on both installation and maintenance costs, as Calor also remains responsible for the upkeep of the tank. LPG is a clean burning fossil fuel for carbon emissions, emitting 20% less CO2 per kWh than heating oil.
It also emits fewer harmful sulphur oxides and nitrous oxides and particulates. There is also a wide range of high-efficiency boilers available, helping to reduce energy consumption further. Rural businesses are highly dependent on the reliability and availability of their onsite fuel supply. In contrast to oil, which remains a common target for thieves, it is virtually impossible to steal LPG from a gas tank as it evaporates upon contact with the air. Calor tanks also feature intelligent top-up technology, which automatically reorders gas when the tank is running low and schedules a delivery.
A miniature IP65-rated PIR presence detector has been launched by CP Electronics, allowing for maximum ease of integration and installation into outdoor luminaires. The EBMHS-IP miniature PIR presence detector has been approved to IP65 rating in accordance to BS60598-1 2015 standards for 15 minutes, demonstrating impressive water ingress protection. This makes it suitable for external applications including car parks and street lighting. With a range of up to 16m at a 7m mounting height, the EBMHS-IP can be supplied pre-wired with an RJ11 plug for connection to the relevant power supply. It presents a fully integrated control solution, approved to the same ingress protection standards as luminaires themselves. The product has also passed extensive vibration testing, further demonstrating its durability.
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Efficiency savings guaranteed Veolia, through its specialist subsidiary Veolia-Cynergin, has resecured a 10-year energy performance contract (EPC) with the Natural History Museum in London and two of the museum’s other sites. Veolia-Cynergin has worked closely with the museum since 2004 and the contract will enhance the current energy efficiency measures that have over-achieved against the guarantee every year to date. By helping the organisation in
developing and implementing its carbon reduction masterplan, Veolia-Cynergin will also contribute towards the museum’s carbon targets. Solutions implemented so far cover combined heat and power for two museum sites, high efficiency lighting retrofits, boiler replacement and air conditioning plant. These measures have exceeded the guaranteed annual net savings of £54,000, after investment payback.
Smarter surveying for energy savings E3 Global has added Energy Eye, a software package that provides a dynamic view of a building’s energy performance, to the company’s portfolio of energy saving products. Suitable for any size of surveying operation, Energy Eye provides an up-to-date picture of a building’s energy consumption and carbon emissions, allowing owners tosee the impact of their energy saving strategies. Available in two tiers – gold and platinum – Energy Eye software enables surveyors and contractors alike to make detailed surveys of building
and energy consuming assets while walking through the site survey, then to calculate and clearly display the relevant data. This allows the identification of issues, classification and scheduling of work required, even down to labour and parts costs, with the ability to export data to other applications. This information can then be uploaded, including survey results, building plans and photos to the central Energy Eye system. It is claimed that using Energy Eye reduces surveying time by about 50%.
Multiple measurement solution for combustion applications ABB has extended its range of continuous emissions monitoring systems with the launch of the ACF5000 for combustion applications. Using FTIR technology, the ACF5000 enables accurate measurement of exhaust gases through the simultaneous analysis of up to 15 different gas components including SO2, CO2, CO, NH3 and VOCs. The ACF5000 combines the advantages of an FTIR (Fourier Transform Infra-Red) spectrometer with zirconia oxygen measurement and optional flame ionisation (FID) technology. The highresolution FTIR spectrometer performs sensitive and stable measurement of active gas molecules, ensuring accurate quantification of gas components. Where the FID module is included, the ACF5000 can also be used to measure
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unburned hydrocarbons at ppm levels to help improve combustion efficiency. The ACF5000’s proven hot/ wet extractive measurement technology removes the need for sample dilution, enabling it to provide accurate measurement of oxygen levels of up to 25% of the sample volume. Further accuracy can also be achieved by using an optional blow-back unit, which enables uninterrupted measurements in high dust applications. Completely self-contained, the ACF5000 offers a turnkey combustion process monitoring solution suitable for municipal, industrial and hazardous waste incineration and power plants using coal, oil or waste. The system offers a small footprint, opening up new possibilities for installation in confined spaces. This is achieved by the use of a single sample inlet for all
sample gases, together with a stream switching function that allows for monitoring of two streams sequentially. The ACF5000 has been designed to minimise operating and maintenance costs. Its modular design enables it to be easily
upgraded to meet changing requirements when adding extra equipment such as the optional FID module. Additional features include an in-built validation unit, which uses internal references to enable cost-effective monitoring and validation of the FTIR spectrometer. Films and gas cells for all FTIR components are used as a surrogate for test gases, eliminating the expense associated with using test gas cylinders. By enabling ongoing system validations, the validation unit satisfies BS EN 14181 QAL3 requirements for maintaining and demonstrating the performance of CEM systems during normal operation. Further operational savings are achieved by the inclusion of a maintenance-free injector pump for passing gas samples through the system.
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Q&A
Chris Dummett Sudlows’ commercial director on the Egyptian pyramids, iPads and the existance of other life forms
Who would you least like to share a lift with? Any politician that stops us changing the law so that common sense can prevail. You’re God for the day. What’s the first thing you do? Make sure every person on the planet has enough food, water and shelter. It is absolutely crazy in the age we live in that this is still an issue. If you could travel back in time to a period in history, what would it be and why? I’d travel to back to the time of the Egyptian Pharaohs. I’d love to see how they built the cities and the pyramids without the use of modern engineering equipment. Thousands of years on, it’s still amazing. Who or what are you enjoying listening to? I’m a massive music fan and love all kinds of stuff. I’m not sure if it’s a middle age crisis or the fact that I have young teenage kids, but I’ve found myself listening to Drake, Passionfruit and
78 Augsut/September 2017
Teenage Fever being particular favourites. What unsolved mystery would you like the answers to? Are there aliens in Area 51? Surely we’re not alone in this universe, are we? What would you take to a desert island and why? iPad. You just can’t beat the amount of applications in one box; you would never be bored. What’s your favourite film (or book) and why? There’s so many to choose from, but I’d say its Lone Survivor. The film is so intense, real edge of your seat stuff. I like the fact that the soldier gets support from a local guy, who by doing so puts his own family at risk; a real example of humanity. If you could perpetuate a myth about yourself, what would it be? That I get to work on time. I really struggle with the concept of getting anywhere for a specific time. What would your super power be and why? I’d have the power to heal. Somethings seem so unfair
Are there aliens in Area 51? Surely we’re not alone in this universe, are we? and the ability to make that good would be pretty cool.
no coincidence that, if you do, good things tend to happen.
What would you do with a million pounds? I’d use it to take the financial burden away from those that otherwise would struggle and treat myself to decent music system.
What irritates you the most in life? Terrorism. I don’t understand it, no one benefits from it and it serves only to destroy life.
If you were blessed with any talent, what would your dream job be and why? I’d love to be able to sing (although, in my world, I can). Music is a big part of my life and I’d love to be involved in the making and production of it.
What should energy users be doing to help themselves in the current climate? I think we have a huge responsibility to change the way we consume energy and how we produce it. Investment into the research and development of energy efficient technologies and the application of them has to be a priority. In the meantime, we must embrace the technologies that are available and be willing to invest in them for the sake of energy reduction even if there isn’t a strong financial reason for doing so.
What is the best piece of advice you’ve ever been given? Treat people how you want to be treated yourself. It has looked after me my whole life and it’s probably
What’s the best thing – work wise – that you did recently? We acquired a new head office building for our team and I’m looking forward to making it a cool place to work. te
What’s your greatest extravagance? A watch. For something that you don’t really need to spend a lot of money on, I somehow managed to.
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