Water, Energy & Environment

April/ May 2015 Issue 97 theenergyst.com

Efficient control of utilities and facilities

Avoid energy bill surprises with Haven Complete

Haven Complete is an all-inclusive fully fixed electricity contract offering budget certainty in this time of Electricity Market Reform (EMR).

Say goodbye to nasty surprises on your energy bills.

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SO ADVANCED, YOU MAY NOT BELIEVE IT COMES FROM PLANET EARTH Space: the vertical design of the new VSD+ compressor saves a lot of it, with an exceptionally small footprint. Its unique permanent magnet motor is light years ahead.

A 12% increase in free air delivery is a giant leap. And, with extremely low noise levels and up to 50% energy savings, the VSD+ is out of this world.

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INSIDE THIS ISSUE INSIGHT The state has more control now than in the days of the CEGB. How liberalised is the market?

See page 10

Editor Tim McManan-Smith tim@energystmedia.com

t: 020 3714 4450 m: 07818 545308 Sales director Steve Swaine steve@energystmedia.com

t: 020 3714 4451 m: 07818 574300 Sales manager Robert Gouge robert@energystmedia.com

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m: 07790 434813

POLICY & LEGISLATION

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Demand-side companies are justifiably concerned that the government is not treating them equally with supply-side technologies

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Whoever wins the election needs to focus on a number of key areas to ensure that new technologies are developed, consumer trust is restored and a stable market exists for investment opportunities See page 12

LIGHTING Wieland Electric’s structured wiring system was the choice to provide the power and lighting at Canada House See page 35

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FINANCING ENERGY EFFICIENCY

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The Investor Confidence Project will enable energy efficiency projects to become bankable See page 16

ESOS  EMA VIEWPOINT

Front Cover - See page 14 April/ May 2015 Issue 97 theenergyst.com

Efficient control of utilities and facilities

Avoid energy bill surprises with Haven Complete

Why despite the huge amount of information released on Esos there is still little awareness?

See page 28 News & Comment p4, Policy & Legislation p12, Gas & Electricity p18, M&T p24, Building Controls p30, Lighting p34, ESOS p38, HVAC p42, Drives & Controls p48, Compressed Air p52, IT & Data Centres, p56, Water Management p60

Haven Complete is an all-inclusive fully fixed electricity contract offering budget certainty in this time of Electricity Market Reform (EMR).

Say goodbye to nasty surprises on your energy bills.

Call our UK based experts on

01473 707755 www.havenpower.com

Simple. Transparent. Complete.

HP0585 WEE Cover v2.indd 1

17/04/2015 16:53

To subscribe please contact circulation@energystmedia.com April/May 2015 | water energy & environment

3

News & CommeNt

The Dumsor effect

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The next prime minister could preside over a Dumsor parliament.

He can be known internationally as Mr Dumsor

With the general election almost upon us, many are waiting to see who will be in charge post 7 May. On the energy front we wait to see in what sort of serendipitous and convoluted plans can create havoc that would make Heath-Robinson proud. The drive towards decarbonising the grid, started by Ed Miliband as minister for Decc and through Chris Huhne and now Ed Davey, has resulted in Electricity Market Reform being enacted. Aside from the fact that we have decoupled power prices from market signals (see page 10) ,and that the Competition and Markets Authority sees nothing strange about a market that has falling primary fuel prices and therefore lower wholesale prices, power prices continue to rise. This is not an attack of power companies; if we want the scale of investment that we need then they need to make a profit, but it is a criticism of a policy whereby we have contrived to make a market that cannot invest unless the government is offering some sort of kickback through subsidies, no matter what the fuel source. This political drive towards decarbonisation has resulted in more coal being burnt – an abject failure and a lesson in trying to be too clever, manipulate markets and pick winners when we operate in a global commodities market.

I was recently asked when speaking if I had heard of the word ‘Dumsor’, and I hadn’t. It is Ghanaian and refers to the practice of turning power off for periods of time because there isn’t enough to go around.

This has caused problems, especially economic loss, to Ghanaian businesses and the country; with other disturbing social impacts on children, families, individuals and communities. It is estimated that up to 6% of GDP is lost through having the power crisis. In 2015, Ghanaian president John Mahama used the word in a state visit to Germany while talking with Angela Merkel. He indicated he has been nicknamed ‘Mr Dumsor’ due to the power crisis.

It is interesting to think that a small but relatively prosperous country on the West African coast has a word that could well mean something here for the incoming government. To operate as a leading first world country, it is necessary to have as near as possible to 100% uptime with power supply. The margins in the UK have slipped to 2% and it wouldn’t take much disruption for problems to occur.

Running a system with such tight margins has other knock-on effects too – such as higher prices, even if it doesn’t fail at a capacity level. Imagine this, with a few wrong decisions, which would ironically be blamed on the industry and not the political interference, the next prime minister could preside over a Dumsor parliament. He can be known internationally as Mr Dumsor. It’s not a great ambition but I suppose it is at least original.

4 April/May 2015 | water energy & environment

News & commeNt

smart meter decisions not so smart The UK’s smart meter rollout programme is in big trouble, MPs have warned, urging urgent action to avoid making one of the UK’s flagship mandated energy policies a “costly failure”.

The Energy and Climate Change Committee’s smart meters report Smart meters: progress or delay? catalogued a host of major problems with the rollout.

Delays in setting up the coordinating technical body, agreeing meter specifications and engaging the public all risked policy failure, the report suggested. Ultimately, it called for energy networks to be brought in to help sort out the mess created by the government opting to proceed with a supplier-led rollout.

The report pulled few punches. For example, it suggested that the body contracted to coordinate the technical side of the rollout, the data communications company, or DCC, appeared to have “a poor understanding of their contractual obligations”.

That in turn, the committee said, represented a “failure

on the government’s part to ensure it was contracting with a partner capable of delivering what it requires”.

The committee said it was taking too long to sort out technical issues around smart meters installed early on (the so-called Smets1 meters) and the later agreed standard for smart meters (called Smets2).

It suggested that early installed meters that were close enough to the agreed advanced standard should be left in use to avoid further delays to the programme.

Many suppliers, particularly those with a strategy to “go early” on smart meters to gain competitive advantage, have lobbied hard for this solution.

The report said that the central comms body tasked with coordinating public engagement (Smart Energy

“It is taking too long to sort out technical issues with meters”

GB) had to “step up delivery” of its communications programme. It needed to prove it had a “clear plan”, the committee said.

Bring in the networks Energy networks were left aghast when the government opted for an energy supplier-led rollout. The report suggested it may be too late to reverse that decision, but made clear its appraisal of the outcome.

Cataloguing a swathe of major problems with the rollout, the report concluded: “All the problems which we have identified are symptomatic of a national programme whose management the government has left largely to suppliers.”

Taking the rollout off the suppliers and handing it to the networks would be a huge decision for the next administration.

The report acknowledged that it may be too late to completely hand over to the network operators, but left the door open: “The government must give serious consideration to whether or

not it is possible to reduce costs to consumers by streamlining the roll-out of smart-meters, perhaps through more active participation of DNOs.” Either way, government could not leave it to commercial companies to deliver such a nationally significant project, the report concluded.

It stated: “The government must also take a more active role in driving forward the industry-led roll-out, seeking and facilitating industry-wide solutions to the technical challenges that remain.

Getting it right will eventually cut energy usage and bills for 30 million homes and businesses in the UK. Getting it wrong risks embarrassment for the government through public disengagement with a flagship energy policy and a costly missed opportunity.”

Decc and Ofgem have subsequently responded to the report. The department disagrees with many of its central recommendations and insists that energy suppliers rather than networks remain best placed to deliver the rollout.

esos firing blanks on buy in at board-level the introduction of the energy savings opportunity scheme (esos) has made little impact on board-level attitudes towards financing energy efficiency, according to UK businesses that have to comply with the scheme.

Initial findings of a survey by theenergyst.com found almost two thirds of respondents (63%) thought esos had made no difference to getting energy efficiency projects away. Less than a third (31%) said that it had. the survey, which closes

in mid-may, aims to gauge the barriers to financing energy efficiency projects.

Responses garnered so far from more than 50 directors, managers and consultants across multinationals, local authorities and smes, suggest that board level buy-in remains a major challenge.

A third (34%) of those surveyed have suggested scepticism around the claimed level of savings is a key reason behind board level reticence. more than half (56%) said energy efficiency projects

6 April/May 2015 | water energy & environment

were not enough of a priority for their organisation.

Almost three quarters

(72%) of respondents said there was a lack of trust or understanding of third party finance for energy efficiency projects, while a similar level (69%) said there was a lack of trust or understanding of using energy performance contracts for energy efficiency measures. the full findings of the report will be published in the coming weeks.

In the meantime, we invite readers to spend five to 10 minutes completing the survey. to tke part log on to surveymonkey.com/r/weeFes

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EU ETS emissions down 4.5% despite glimpses of recovery Total emissions in the European Union’s Emissions Trading Scheme (EU ETS) dropped by 4.5% compared with 2013, as shown by the numbers released by the European Commission in April. Power sector emissions fell 7% year on year.

In 2014, some 1,822 million tonnes (Mt) of CO2 were emitted from stationary installations in the 31 countries that participate in the EU ETS, according to the Point Carbon team at Thomson Reuters.

“2014 was the warmest year on record. The mild

winter weather curbed power consumption and contributed to a decline of 40Mt in emissions,“ explained Yan Qin, senior carbon analyst at Thomson Reuters.

She added “Emissions intensity dipped further as renewables play a larger role in the power mix. In addition, gasfired power generation finally reversed its downward trend and became more competitive against coal in some countries, due to plunging crude oil prices and national policies such as UK Carbon Price Floor”.

Last year, emissions related to industrial activity fell by 9Mt, or 1%. “A number of manufacturers have taken measures to improve their CO2 intensity since 2013 resulting in this decrease, which outweighed the increased production seen in several industrial sectors on the back of signs of an economic recovery,” said Ingvild Sørhus, senior carbon analyst at Thomson Reuters.

This is the first year since 2008 that annual emissions are actually higher than the annual supply. The reason for this is

Government aims to put watersourced heat pumps on the map The government is attempting to ramp up its renewable heat strategy and is pushing England’s waterways to businesses as a way to decarbonise heating and cut operating costs.

Energy secretary Ed Davey launched a new waterways heat map as part of Decc’s existing national heat map (a set of electronic maps showing heat demand from buildings across England), and put the onus on businesses and local councils, saying the

Up to one million homes and businesses could use the water-soured heatpumps connected to England’s waterways theenergyst.com

tool provided “the keys they need to unlock the enormous potential of our waterways”.

Davey launched the map at Battersea Power station in London, which is looking into installing heat pumps and reusing the old power station infrastructure to connect it to the Thames.

Davey’s department suggested up to one million homes and businesses could use the water-soured heatpumps connected to England’s waterways.

The map includes residential, commercial, industrial, public buildings and total heat demand. It also gives details of water conditions, potential heat capacity and the level of heat demand in England. The aim is to reduce the cost and time of individual feasibility studies.

Decc said it was working with the Environment Agency to make obtaining permits easier, with an industry-led and government-funded code of practice due to launch later this year.

that the backloading measure reduced the annual auctioning volumes in 2014 by 400 million allowances, resulting in a net shortage of some 200Mt. “Backloading will continue for the next two years; and with a decreasing cap and the implementation of the market stability reserve, we expect the accumulated oversupply in the EU ETS to decrease as well. In fact, it is likely that 2014 could be the year when the accumulated oversupply in the European carbon market peaked,” according to Yan Qin.

Brussels takes EU to court The UK is one of 27 member states against whom the European Commission has launched infringement proceedings for failing to transpose the Energy Efficiency Directive (EED) into law.

On transposing the EED, only Malta has managed to do so. The commission has therefore started legal proceedings against every other member state.

Under the Lisbon Treaty, if member states fail to transpose EU legislation into national law within the required deadline (the deadline for the EED was last June) the Commission may ask the court to impose financial sanctions when referring the case to court.

So far, only Hungary is facing financial penalties under the EED. The Commission has suggested to the court a fine of ¤15,444 per day until it has transposed the directive.

April/May 2015 | water energy & environment

7

News & commeNt

Global gas glut pushes UK power prices down to four-year low UK power prices fell to their lowest in four years during the first quarter of 2015 and averaged 10% lower than the previous quarter, according to analysis by pricing firm ICIS Power Index.

Latest data from the ICIS Power Index (IPI), which reflects wholesale power prices over a year of delivery, shows prices have declined to their lowest point since the start of IPI calculation in 2011, hitting theirlowest level to date on 26 January, at £43.573/MWh. For Q1 as a whole, the IPI averaged £45.10/MWh – 10%

less than the IPI’s average for Q4 2014 of £50.40/MWh. The Q1 2015 average was also 6% lower than the lowest previous quarterly average since the IPI’s first calculation, in Q3 2012.

ICIS analysts said continued gas oversupply, with rising production of liquefied natural gas (LNG) around the world and more coming to the UK, was the key driver, alongside the influence of other global markets such as Brent crude oil and coal.

ICIS head of power Zoe Double said: “Wholesale

energy market prices are under increasing pressure from macro-economic factors.

The UK is now part of a truly global gas market with more liquefied natural gas availability, and oversupply on energy markets elsewhere in the world is having an impact on wholesale energy prices here, with the fall of Brent crude oil and lower coal values.”

ICIS first quarter analysis suggests that the trend of increased LNG imports is likely to continue with macroeconomic indicators also pressuring UK energy prices.

Lords in call for public DSR targets After a blackout-free winter, the House of Lords report into resilience of the UK’s electricity infrastructure predicts the lights will also stay on next winter. But the report highlighted concerns that the extra capacity procured by National Grid to raise margins from 4.1% to 6.1% was “put in place at short notice and at considerable cost and in a way that conflicts with the decarbonisation agenda”.

The report said the government should be honest with the electorate that decarbonisation will not come cheap. It said the government must also “maintain a flexible approach [to the whole electricity system] and nurture a range of technologies, including electricity storage, interconnection and Demand Side Response (DSR).

On the latter point, the Lords report recommended that government brings the length of DSR contracts in the capacity market in line with those for generators.

One year contracts will not bring forward adequate investments in DSR systems that require longer surety and returns to achieve payback, the inquiry heard.

During oral evidence, the

“Government should be honest with the electorate that decarbonisation will not come cheap”

8 April/May 2015 | water energy & environment

Lords also heard that no comprehensive assessment of back-up generation, or even valid estimates of how much back-up power was installed in the UK, existed.

The report recommended that the government “conducts detailed assessments of what DSR could potentially achieve”.

Pointing to evidence which suggests less than 10% of the public sector was looking at any form of demand response, the Lords said government should develop and publish a plan “which includes specific targets for the public sector to implement Demand Side Response measures and so set an example”.

Inprova steps into TPI arena Inprova Group has bought two non-domestic energy brokers, energyTEAM and ENER-G Procurement. The procurement outsourcing company said both firms will be rebranded as it bids to become a power player in the third party intermediary (TPI) market.

Inprova said wrapping the two brokers into the business triples its workforce and makes it one of the UK’s top 10 non-domestic energy TPIs. The company outlined plans for further aggressive growth with further acquisitions likely.

West Sussex-based energyTEAM employs 60 staff and handles clients including Virgin Atlantic, Hotel du Vin Group and fashion retail chain White Stuff.

Warwickshire-based ENER-G Procurement was acquired from the ENER-G Group. Its 52 staff will all transfer over to Inprova.

The group’s chief executive, Paul Kennedy, said the deal gave the group greater buying power and opportunities to offer clients more varied services. “Inprova Group will be turning over in excess of £12m per year following these two acquisitions. My aim is to at least double this figure over the next two to three years,” said Kennedy. “We’ll do this through our strong customer base in existing markets, which offers significant growth opportunities and also by continuing our ambitious UK and international expansion strategy.”

The company said it was currently in advanced discussions with a US based partner regarding the roll-out of a national procurement solution in specific vertical markets. Inprova is also looking to acquire more energy market companies as well as procurement technology businesses.

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College cuts costs with retrofit boiler controls outsourcing in utilities and energy buoyant The number of outsourcing contracts signed by the UK energy and utilities sector more than doubled year-on-year in 2014, according to the latest Arvato UK Outsourcing Index.

Together with year-on-year growth in average contract value of 32% to £54m, the rise in the number of contracts indicates a maturing market with outsourcing becoming an increasingly popular strategy among companies in the sector.

The research, compiled by business process outsourcing provider Arvato, in partnership with industry analyst,

NelsonHall, also revealed that 70% of all energy and utilities contracts signed in 2014 were second generation partnerships – extensions, renewals or the replacement of incumbents – up from 56% in 2013.

Energy and utilities firms spent a total of £1.072bn on outsourcing contracts in 2014, representing 15% of the total value of all agreements signed in the UK past year.

Firms in the industry significantly increased their IT outsourcing spend in 2014, with deals totalling £1.046bn compared with £148.6m in the previous year.

UK manufacturers prepare for EMR charges to hit bills As Electricity Market Reform charges are added to bills this April, UK food and drink manufacturers are concerned about rising energy prices.

Many feel government has not done enough to explain the impact of energy policies on their bills. Most think government should give large manufacturers tax breaks to help counter the cost of EMR. That’s according to a survey carried out for npower. The firm commissioned a poll of 100 decision makers at food and drink manufacturers.

It found that three quarters were concerned about rising energy prices. Some 65% of respondents feel that the government is not providing enough financial compensation to help businesses fund UK energy policy. About 38% of businesses polled claimed they have had too little warning or explanation of the impending new charges on their bills.

EMR charges (for the Contracts for Difference (CFDs)

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and the capacity mechanism) will start to appear on bills this month. The impact for most businesses will initially be negligible but will rise over time. By 2020, they could make up 10% of the electricity bill. npower said energy management must be a priority for firms. It added that suppliers should be engaging more with big business to “help them mitigate the risk of rising prices, maintain their competitiveness, and even turn energy into a commercial opportunity where possible,” according to Wayne Mitchell, director of markets and innovations for npower business solutions.

“The reality is that energy bills will start to increase from April, yet we continue to underestimate the impact on large businesses. Cut backs and carbon leakage are a concern for UK plc; not only do we risk losing productive, viable businesses but the overall objective of reducing carbon emissions could be lost as well.”

Sidney Sussex College, a constituent college of the University of Cambridge, has installed Sabien M2G boiler load optimisation controls across its estate after seeing a 17% reduction in oil consumption during the measurement and verification phase of the project.

The college initially installed M2G in one boiler house to verify the level of savings. Energy consumption data was provided to Sabien, which was then analysed to establish the level of energy savings using the CuSUM methodology.

The analysis demonstrated a 17% reduction in oil consumption.

Following the analysis the college proceeded to install M2G on the remaining 11 boilers. The boilers varied in age and size and there was no downtime to the college’s operations during the installations.

Using the 17% savings initially verified, it is estimated the project will pay back in 2.1 years, saving the college more than £9,500 a year and resulting in avoided CRC costs of more than £3,500 over five years.

“Reducing our heating consumption and the associated oil costs is a key objective for the college and Sabien’s M2Gs are playing a key role in achieving this,” said Keith Willox, Domus Bursar for Sidney Sussex College.

“There was minimal disruption to our operations throughout the whole project. Sabien provided complete end to end project management, including the measurement and verification, commissioning and installations of the M2Gs,” he added.

How it works

The patented M2G was introduced in 2004 to provide effective control of boiler dry cycling without the disadvantages of previous technologies which had relied on either a fixed-time delay with no temperature sensors or lowering the boilers’ operating temperatures.

M2G technology uses flow and return temperature sensors to monitor, analyse and control the flow and return temperatures of the boiler in real time. It recalculates the values every time the boiler reaches its required set point temperature.

This means it adapts to BMS/ optimiser variable set-points and does nothing to conflict with other existing controls such as weather compensation, demand control or sequencing. The boilers’ designed set points are never altered.

Therefore it is able to determine the actual heating demand on the boiler and prevent it from dry cycling without lowering the system temperature or using a fixed time delay. Furthermore, all of the verified savings delivered by these retrofit controls are actual kWh savings in gas consumption – not the reduction in firing time that some manufacturers promote. The latter has no relation to the money spent when high/low or modulating burners are used.

Due to its compatibility with other boiler controls that may be in use, intelligent boiler load optimisation adds to the energy savings already being achieved by these other controls and will typically deliver a payback in less than 18 months.

This figure is based on installation of 9,000 of these units worldwide with subsequent verification of savings in line with the International Performance Measurement and Verification Protocol (IPMVP).

Further information, including a video that explains boiler dry cycling, is available at www.sabien-tech.co.uk

insight

The state strikes back People often like to say that UK energy policy is a mess, with contrasting and conflicting aims and policies.

However, many don’t fully appreciate the extent to which we no longer have a liberalised market and that the state has more control over the electricity market than in the days of the Central Electricity Generating Board, writes Tim McManan-Smith

O

ver the past 20 years, the UK energy market has moved from one of the most liberalised in the world, acting as an example of how market can create efficiencies, to one where the government or agencies acting on the government’s behalf now control the workings of the market in a way that exceeds the publicowned Central Electricity Generating Board (GEGB).

Think tank Policy Exchange recently drove that point home at a conference entitled ‘The return of the state’.

“Virtually no investment is now taking place without some form of government support, and government intervention has increased across the energy value chain,” the conference heard.

Consensus and control There is a consensus within most political parties that there are three aims to energy policy: decarbonisation; security of supply; and affordability. Politicians, like the majority of managers, cannot resist the temptation to manage – that is interfere and manipulate. Laissez faire worries them in that they are then perceived to be actively doing very little.

But if a market is working correctly there should be very little for them to do.

So what do you do if there are no problems? Invent some, of course, and when you push one thing with a policy, you need another policy to correct the inevitable unintended

effect, and so on ad infinitum.

The next government will have to decide whether it wants to continue to intervene in the energy market or should it try to go back to a competitive, liberalised market?

The market we currently have is arguably the worst of both worlds; it is “privatised” yet no investor looks at it without government subsidies on offer to make the investment worthwhile.

Dieter Helm, professor of energy policy at the University of Oxford and a member of the Economics Advisory Group to the secretary of state for energy and climate change, started his speech at the Policy Exchange event with the a reason for optimism.

He said that was because the current state of energy policy “probably can’t get much worse, so the scope for improvement is enormous.”

However, will any politicians make a case for a more liberalised and cheaper operating market when there is the fall-back position of vilifying the energy industry to avoid the blame resting at their feet?

David Porter in his new book Electricity supply: The British experiment tells the story of privatisation from CEGB, firstly through early successes and very low prices and then through the more difficult times of climate change agendas and market reform. What is telling is the subtitle of the book: the intentions were good. Politicians do not set

10 April/May 2015 | water energy & environment

the UK electricity market is receiving contradictory messages

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The fact that British consumers seem to get no benefit whatsoever from a substantial fall in fossil fuel prices must lead to questions about how the electricity market is functioning

out to create complicated, bureaucratic, cumbersome, contradictory and egregious systems of market control yet that is what they have achieved. This has been primarily through them feeling unable to leave alone something that was working.

Of course, a market needs rules but these should be few and they should be common sense. If you want to reduce carbon, then set a rule that achieves that rather than the plethora of low carbon intrusions that prevent a market from working optimally.

An alphabet soup of policy creates confusion, red tape and endless admin in abundance.

But often very little else. the energy trilemma The trilemma of affordability, climate mitigation and

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security of supply is difficult to address effectively. According to the recent Lords report on resilience, and many other earlier reports, three into one does not go. But will policymakers admit their policies will make energy even more expensive in the future, despite a current downward trend in gas and oil prices?

One country where politicians have overtly been involved in directing the energy market is Germany.

Here they have embarked a decade or more ago on a programme of addressing the climate change agenda by strongly incentivising the uptake of solar power and allied to a large scale wind programme.

Carlo Stagnaro, senior fellow of Istituto Bruno Leoni, a Milan-based free market think tank, said in an article for the Institute of Economic Affairs that “the German experience with Energiewende is an instructive parable of where an energy policy based upon political favours and central planning ends up. Hopefully other EU countries will learn the lessons before it is too late.”

It seems that successive UK administrations remain hell-bent on creating a poorly functioning, centrallycontrolled yet independent market. Fulfilling a political dream in the way that the Germans have explicitly picked the technologies rather than the emissions has been a costly experiment.

Given the financial constraints that appear to be the new operating paradigm of public finances, it would be foolish to not get the most bang for your buck when it comes to reducing emissions.

Helm states that: “On competition and affordability, I think the facts are something like this: The wholesale price is about twice the Northern European one, I think the

theenergyst.com

oil price has halved, I think the coal price has halved, I think the gas price has fallen by about 25% and I think in recent times the only thing electricity prices have done is gone up. That’s quite an achievement and quite an achievement for the CMA to see that there’s nothing wrong with that whatsoever.

“There are some serious questions to ask about a market that produces that result from what is an enormous sell-off of commodities around the world and the fact that British consumers seem to get no benefit whatsoever from a substantial fall in fossil fuel prices must lead to questions about how the electricity market is functioning. And just to add to the competitiveness we’ve invested in some of the most expensive technologies known to mankind.”

Regarding security of supply, Ofgem’s Electricity Capacity Assessment 2014 suggests that margins could be as low as 2% in 2015/16.

This is occurring at a time when demand has gone down through the largest recession in living memory and energy efficiency efforts. Without such events we would be in a much worse situation.

The function of electricity market reform (EMR) was to de-risk low carbon investment offer affordability and security of supply. Yet it is struggling on all three.

With EMR, alongside many other meaures, we have moved to a more centralised model whether by ignorance or wilful design, perhaps the lessons from Germany can be learned if we are moving away from the free market? If we continue this way, we must accept that this what we are doing and act accordingly.

Which way the election goes and what the future of the UK’s energy policy will be is anyone’s guess. But my money is on further intervention that adds further cost. we&e

Take a load off your mind Dave Cockshott, chief commercial officer at Inenco, considers what the latest increases in transmission costs mean for businesses Spring has well and truly sprung, but my mind is already drifting to winter. More specifically, the three coldest half hours of winter, when demand is at its highest.

Triads – the three half hour periods when peak usage is highest between November and February – determine the cost of a business’ transmission costs, based on their consumption during that time. The 2015/16 costs were published earlier in the year, and on average have risen by 19% on last year’s prices.

For those businesses affected, an increase in network costs when other aspects of non-commodity costs are also increasing will be unwelcome news. However, the good news is that you’ve got six months before the next triad period begins – which is plenty of time to take action to prevent increases in 2016.

One of the simplest steps businesses can take is to make sure they are signed up to a triad warning scheme from their supplier or consultant, to forewarn of an anticipated peak period and enable businesses to take steps to reduce their consumption.

The annual triad charge per region ranges from £23 to £46 for every average kVA. So even average reduction of 100 kVA during each of those periods will achieve £ 2,300 to £ 4,600 each year.

Businesses that can control their energy consumption during anticipated peak periods can avoid excessive transmission costs but also reduce distribution costs (DUoS) by avoiding the more expensive red and super red band periods when the network is under the most pressure.

There are various methods that can be used to achieve load management. Let’s start with the obvious: using less. Look at ways to minimise the impact by turning down consumption, for example by identifying equipment that can be turned down or off during peak

“

Load management deserves some serious consideration – and there’s plenty of time to put in place plans for the next period periods, or processes that can be changed. Let’s say that if every time you boiled a kettle it was £1 cheaper to do it half an hour earlier, you’d soon change what time you made your afternoon brew. Multiply that kettle into an industrial process and the savings could be significant.

If you can’t shift processes or turn down, increasing numbers of energy-intensive businesses have alternative generation on-site that they can switch to when a triad period is anticipated, to avoid taking power from the grid.

Load management is becoming a serious focus, particularly with the introduction of several industry schemes that offer new revenue streams for businesses able to switch down when asked to help balance the grid, from Decc’s Demand Side Response scheme and National Grid’s DSBR scheme to the Electricity Demand Reduction pilot, which is expected to run a second phase.

Load management deserves some serious consideration – and there’s plenty of time to put in place plans for the next period.

With the ability to both reduce costs and even earn revenue, doesn’t that put a spring in your step?

poLicy & LegisLaTion

What the next government needs to do for energy Whoever wins the election needs to focus on a number of key areas to ensure that new technologies are developed, consumer trust is restored and a stable market exists for investment opportunities

T

he next parliament must focus on three key elements to avoid making a mess of energy policy: maintain stability; support new technologies; and build consumer trust.

That was the key message from the Energy and Climate Change Committee as it set out its vision for the future of the UK energy system.

Those cornerstones were based on the evidence of 91 written submissions to the committee.

“

Demand-side companies ‘are justifiably concerned that the government is not treating them equally with supplyside technologies’

Levies, contracts, carbon The report called for prioritisation of the allocation of contracts for difference (CFDs) in the next parliament and longer-term clarity on the Levy Control Framework, so

that investors have greater visibility of how subsidies will be controlled. The committee suggested at least seven years visibility was required.

As well as low carbon technologies, it also said that gas must continue to be incentivised in order to keep bills down.

Equally, the government must “push hard” for reform of the EU Emissions Trading Scheme “as soon as possible”, so that the EU ETS is not further undermined by the glut of permits remaining in play. energy efficiency flop, tech funding gap Energy efficiency, demandside response and reduction “have been the Cinderella of energy policy”, according to the report. The Green Deal

The next government needs to maintain stability, support new technologies and build consumer trust

12 April/May 2015 | water energy & environment

has “largely failed”, while the demand-side companies “are justifiably concerned that the government is not treating them equally with supply-side technologies”, said the committee.

Government must level the playing field between generation and demand-side measures and “bring about a step-change in energy efficiency by adopting a policy that genuinely engages the consumer and drives down energy demand”.

Meanwhile, government must ensure that capital flows into research and development if new technologies are to help deliver policy goals of affordability, decarbonisation and security of supply.

While the committee called for support of technologies such as carbon, capture and storage, it warned government not to base policies on the assumptions that it would be commercially viable in time to meet the UK’s carbon targets. come clean about the cost of decarbonisation If the government is to build trust in a market where energy companies, and switching sites, are seen as profiting at the expense of customers it must build trust in both its policies and the energy companies delivering them, concluded the report. Government must also be honest about the costs of decarbonising the energy system or risk jeopardising everything it is working towards. we&e

theenergyst.com

Political will to change The Institute for Public Policy Research presents an assessment of where each of the main political parties stand on energy and climate policy

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ith the manifestos published and the general election campaign entering its final stages, the cross-party consensus on tackling climate change remains broadly in place.

The leaders of the three main parties recently signed a joint agreement reiterating their shared commitment to this in the next parliament, limiting global temperature rises, delivering on the targets set out in the Climate Change Act 2008 and transitioning rapidly towards a low-carbon economy.

The three main parties have also been supportive of the UK government’s efforts to agree a more ambitious EU-wide greenhouse gas emission target for 2030.

However, if we look beyond this apparent consensus, it becomes clear that there

“

There are significant differences between the parties in terms of their approach to energy and climate issues

are significant differences between the parties in terms of their approach to energy and climate issues.

In a short briefing paper focusing on the commitments made in the newly published manifestos, the IPPR has compared each of the parties’ stances on international climate negotiations, carbon targets, energy efficiency, renewables, generation capacity and

the energy markets.

Whatever the makeup of the government after May 2015, the dividing lines between the parties on these issues will have huge implications from the very start of the next parliament.

Vital decisions will need to be made regarding the UK’s role in the Paris talks later this year, the fifth carbon budget, a 2030 target to decarbonise the power sector, and the future of lowcarbon funding will all have profound consequences for the UK’s energy and climate change pathway to 2030.

Increasing attention will undoubtedly be paid to the costs of low-carbon policies as the costs of the transition increase – managing this, and ensuring that it is as just and low cost as possible, will be a defining challenge for the incoming government. we&e ippr.org

Salix extends deadline for FE colleges

e

nergys Group, is encouraging Further Education colleges in England and Wales to take advantage of a specialist fund for energy efficiency upgrades available from Salix Finance.

A broad range of energysaving upgrades is covered by this round of Salix funding, including lighting upgrades, boiler replacements and renewal of roofs, windows and cladding.

“Retrofit technologies, such as LED lighting, T5 lighting upgrades and boiler optimisation technologies

theenergyst.com

represent energy-saving quick wins for many FE colleges,” advises Kevin Cox, managing director of Energys Group.

“Salix funding provides a great opportunity for colleges to invest in these technologies without the usual financial risk.”

This dedicated fund is an extension of a dedicated FE college fund offered by Salix which closed for applications at the end of January 2015.

Criteria for funding is very specific: projects must have a payback period not exceeding five years in order

to meet compliance. They must also cost less than £100 per tonne of CO2 emitted over the lifetime of the project and be backed up by a business case (should the

project exceed £100,000).

The deadline for applications for the fund, which was originally launched last year, has been extended to 30 June.

Information about how to apply for the funding is available on the Salix website.

However, Energys Group has also produced a step-bystep guide which outlines how to complete a Salix loan application. The guide contains information on the applications process and how to meet the project criteria. salixfinance.co.uk energysgroup.com

April/May 2015 | water energy & environment

13

Cover story

Understanding EMR and the potential Antony Badger, strategy and development director at Haven Power, addresses the challenges facing both customers and suppliers in light of EMR policy costs appearing on bills

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e’ve been talking about it for months, but the time has now come for electricity suppliers to incur costs associated with Electricity Market Reform (EMR) policies. In order to recoup these costs, suppliers will be forced to incorporate costs into customers’ contracts, meaning businesses will start to see them appear on their bills. For now, the costs will remain negligible, but they will no doubt steadily increase over time.

Businesses may still be getting to grips with the intricacies of how the costs work, and it is the responsibility of the supplier to guide customers through this time of change.

There are plenty of negative opinions being thrown around in the EMR debate, but it is important for suppliers and businesses to remain in an open dialogue about the charges and remember the bigger picture for the UK. We must support the creation of an efficient, low carbon energy infrastructure that safeguards electricity generation and supply for the future, so that our economy can grow and compete globally.

Each supplier is handling the inclusion of EMR policy costs differently – so how will customers be affected?

What’s the cost?

As you are probably aware, the Capacity Market (CM) is an auction-based arrangement that has been put in place to secure the UK’s electricity supply by making financial incentives

available to participants – ensuring the lights stay on at times of peak demand. Eligible generators and customers that can demand-side manage their consumption can both participate in this scheme.

The first auction has already been held for capacity to be available in 2018/19, but full CM levy costs are expected from October 2016 when demand-side response (DSR) participation begins. This will allow large consumers to bid to reduce their consumption at peak times in exchange for payment, minimising the overall peak demand.

There are charges we do know about already, for example the operational costs of the body that oversees the CM scheme, the Electricity Settlements Company (ESC), are £3.9m for 2015/16. This is being recovered from suppliers on a market share basis and customers are likely to have seen this on their energy bills from April 2015.

Put in place to stimulate long-term investment in low carbon generation, Contracts for Difference (CfD) provide predictable revenue streams for generators. The vision is that this will encourage new and efficient investment by reducing risks to investors under a private law contract.

Under the scheme, CfD generators that are awarded a contract receive a payment to cover the difference between the market price and their contract ‘strike price’. This provides the predictable revenue stream.

The cost of the difference payments is recovered from

14 April/May 2015 | water energy & environment

suppliers by the Low Carbon Contracts Company (LCCC), which oversees the scheme.

Although some contracts have been awarded to CfD generators, these are not due to start generating in the immediate future and the LCCC has confirmed that they will only be recovering the operational costs from suppliers in the first place.

When the cost recovery begins, it will happen in two stages. An interim rate will be published by the LCCC and will be used as the basis for the initial payments by suppliers.

Once generation volumes and actual customer consumption is known, subsequent reconciliations will take place.

If we consider the operational

costs associated with the CfD scheme, which is overseen by the Low Carbon Contracts Company (LCCC), these are fixed at £0.0397/MWh for April 2015 to March 2016. Like the CM administration costs, customers are likely to see this on their energy bills from April 2015.

All businesses will be affected

by EMR costs, with the exception of the very largest energy intensive industries, where an exemption from CfD costs will be provided subject to eligibility and EU State Aid approval.

Since being informed that the interim rate for the quarter starting April 2015 would be £0.035/MWh, the rate has been revised to zero. So it seems that the impact on energy users is

theenergyst.com

l impacts on your business

“

Even with the general election, it is almost certain EMR is here to stay – the legislation is supported by all parties and will be hard for any future government to undo

Haven Complete has been designed to offer full protection from future rises in eMr policy costs

minor at the moment, but we can be certain that costs will be going up a significant amount in the future. The good news is that the government has established the Levy Control Framework, set up to keep costs under control for consumers.

It’s important for businesses to liaise with their supplier so they are fully aware of how the new charges are incorporated into their bills. Existing customers may see something different to new customers who might be on a new contract that fixes or includes these additional costs in a different way.

Where do customers stand with existing schemes?

Quite rightly, many customers

theenergyst.com

are questioning how the new EMR policy costs – CfD and CM – will work alongside the existing schemes such as Renewables Obligation (RO) and Feed-In Tariffs. Like the RO, CfD costs are funded by collecting money from energy suppliers, which in turn pass the costs on to their customers. The new CfD scheme will replace the RO as a support mechanism for renewable generators from 2017 although those generators that have already signed up to the RO will have their contracts honoured by the Government. turning eMr into an opportunity But it is not all doom and gloom – there are ways that major energy

users can cut costs. The main way to do this is demand-side response participation in the CM. Large businesses could explore ways to reduce / shift consumption which might allow them to participate in the CM. This could be in conjunction with existing or new on-site generation to support their changing consumption patterns.

In addition, although it may seem obvious, EMR will encourage more businesses to reduce costs through smarter energy management and efficiency measures.

Communication is key Each electricity supplier will manage this change to legislation in different ways. The best way forward is for suppliers to be completely transparent when communicating these costs with their customers.

At Haven, we are working extensively to implement these changes and are making sure that we provide our customers with clear information in a timely manner.

In fact, we’ve recently launched a new product to address the costs associated with EMR policies. Haven Complete has

been designed to offer full protection from future rises in EMR policy costs. We believe it is the first product on the market to include a fully fixed energy cost and fully fixed specified charges backed by terms and conditions. Complete provides budget certainty for businesses that don’t want to be exposed to unpredictable cost rises.

Looking ahead What can we expect over the next few years? Even with the general election, it is almost certain that EMR is here to stay – the legislation is supported by all parties and will be hard for any future government to undo.

There are concerns about EMR charges negatively impacting on the competitiveness of UK businesses in the EU and global marketplace, due to cost uncertainty and increased costs.

But it is important to remember that long-term, consumers will benefit from a decarbonised economy that will ultimately improve energy security, reduce bills and emissions.

For further information on Haven Complete, please call 01473 707755 or visit havenpower.com

April/May 2015 | water energy & environment

15

FinancE

Making energy efficiency an investible The Investor Confidence Project is ‘six months away from issuing protocols that will enable energy efficiency projects to become bankable’. That could solve the disconnect between stalled energy efficiency projects and billions of pounds looking for a good home. Brendan Coyne reports

E

nergy managers are too bogged with compliance and admin at the expense of finding ways to ensure energy efficiency projects get off the ground and financed.

Meanwhile, a lack of data and standardisation is preventing otherwise viable projects from being bankable when presented to financiers.

The result is a yawning disconnect between thousands of stalled energy efficiency projects and billions of pounds in immobile private capital.

That disconnect leaves UK businesses wasting money and helps contribute to the very real risk that Britain will miss its legally binding 2020 targets, whose deadline falls on the next government’s watch.

Part of the problem is that there is no standard way of developing energy efficiency projects. If they cannot be standardised, making them bankable when presented to financiers is a tough ask.

However Steven Fawkes, founder of large-scale energy efficiency financing company EnergyPro, thinks that the UK may only be six months away

The UK may be just six months away from the missing piece that is currently preventing energy efficiency projects from being bankable for investors

from clearing that hurdle.

Fawkes outlined the need for better project data and standardisation in order to accelerate investment in energy efficiency at the recent PRASEG & APPGIE meeting.

He later told we&e that the solution to the second half of the equation may not be too far: the Investor Confidence Project should have its first

set of protocols in market within the next six months.

Born out of the Environmental Defense Fund in the US, the Investor Confidence Project Europe recently secured a ¤2m Horizon 2020 grant to develop a set of protocols that enable standardisation documents and processes for energy efficiency projects. That in

turn makes them bankable for investors, which in turn should enable aggregation of projects to unlock vast pools of capital to flow into energy efficiency projects.

Fawkes says banks including ING are on board with the project, as is the Green Investment Bank, and he is confident that while it has taken “three or four

Energy managers must become financially savvy Does the need to understand the requirements of financiers require a different type of energy manager? Steven Fawkes thinks so.

“I think the energy management function needs a lot more financial and business case training. It comes back to the problem that even though funders like the Green

Investment Bank want to get money out of the door, they can’t,” he says.

“Part of the reason for that is that there is a real development gap in capacity to develop projects to bankable standards. If the energy manager could spend more time developing projects to bankable standards using

16 April/May 2015 | water energy & environment

ICP protocols etc., then there would be more projects to fund. Then the GIB wouldn’t have so many problems getting money out of the door.

So yes, I think we need to make sure energy managers are not spending 90% of their time filling out forms.”

Fawkes admits that level of administrative burden is an

exaggeration: “But I talk to a lot of them and they all say the same thing.”

Are they financially savvy enough as a bunch?

“I think we need to work on that particular understanding and skillset so that they can involve the CFO or external investors at a very early stage and talk the same language.”

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asset class

“

Even if you are the Green Investment Bank, you can’t build scale around ad hoc processes Steven Fawkes

years to really gain traction in the US”, results in Europe should be more rapid.

While there is an “awful lot of interest in energy efficiency in the US, I think here the pressure is bigger to do something,” says Fawkes.

“I talk to more and more lenders and investors who would really like to do something,” he adds. High transaction costs and lack of standards is a real issue.

“Because even if you are the Green Investment Bank, you can’t build scale around ad hoc processes. So we are being pulled really to accelerate the programme.”

What would further accelerate it is better data. Fawkes hopes more companies will open up project data so that energy savings can be verified and therefore de-risked.

theenergyst.com

Verification, alongside standardisation, would also allow an energy efficiency market to be created.

If energy efficiency can be properly measured, “then it becomes a resource you can buy like any other”, says Fawkes.

“At the moment we don’t think about it that way because we’ve always said ‘it’s too hard to measure’.

People have to buy into the measurement and verification protocols [which already exist] and build understanding of them. But when you can do that you could end up with a scenario where somebody can come along and say ‘I will pay you for so many units of energy efficiency’, because there is a market.”

If that market can be created, the money will follow exponentially, because energy efficiency projects can be packaged up to investment class assets.

“The big issue with energy efficiency from the point of view of the institutions is that each project is so tiny,” says Fawkes.

“Even a big hospital retrofit, if you’re lucky, might get to £10m.

But that’s tiny [for institutional investors]. Everybody says aggregation is the solution, which is correct. But you can’t aggregate if every project is done in a different way.”

That effect can then be amplified because aggregation will open up project finance to the secondary bond and debt capital markets. “But again, you can only go to those markets if you are standardised,” says Fawkes.

“That is why it has to be a market-wide exercise.” we&e

The range of services delivered under the headline of Energy Bureau Services varies considerably from one provider to the next. Any multi-site portfolio customer who considering engaging a company to provide this service should first consider four key elements to the service:

Checking invoices – Well that’s a given, isn’t it? Or is it? With many portfolio group contracts being billed electronically, the level of information provided in some file formats is far less than with others.

This makes it impossible to accurately check many of the smaller but still relevant cost elements, if these are not itemised within the electronic invoice.

With monthly bill values for larger portfolios exceeding £1m on some group contracts, mistakes on small cost elements can exceed £20,000 per month. So it’s definitely worth checking. As Grandma always said – look after the pennies…

Electronic payment advice – Increasingly, with demand to receive payment within shorter timescales (payment within 14 days is becoming increasingly common) and with both private sector companies and government departments seeking to achieve this, anything that speeds up the payment process is welcome.

Consequently, providing electronic payment details with all supplier references, user cost codes, property/ portfolio references, gross and net amounts to be paid is vital for achieving these goals. Payment advice spreadsheets should be configured so that they list all information, in the order required, so it can be easily imported directly into the payee’s finance software. This also eliminates double keying data (by the bureau and then by the accounts payable team) that not only speeds up payment but also reduces errors.

Monthly reporting of consumption and cost – Naturally all utilities data should be recorded on a comprehensive database but often so little use is made of this valuable data asset. At the very least a monthly report should be produced for each property showing consumption and cost incurred in the month. Routine monthly reports are a vital M&T tool, monitoring consumption against targets and expenditure against budget to provide early warning of when things go awry. Here the Bureau software is an important issue and should be capable of automatically producing exception reports whenever consumption or cost limits are exceeded. Reporting by exception is an essential tool for any over-burdened property manager looking after a large property portfolio, while more complex reports such as CUSUM and regression analysis are important tools used by highly skilled energy managers. In our experience the property manager simply wants an easily understood cost/consumption report telling them if they are above or below where they should be.

Benchmarking – Using the Energy Bureau database to compare energy performance annually between similar properties provides a focus, to direct energy reduction resources where they can achieve the greatest impact.

Comparing measured performance with normalised good practice data helps with estimating the potential saving, often with surprising results.

The role of Energy Bureau Services to accurately measure energy and water use is immense when properly delivered and integrated with energy reduction programmes and can be the difference between success and failure.

For further information call 01275 859100, email info@tebs.uk.com or visit tebs.uk.com

GAS & ELECTRICITY

EDF lands record supply deal The UK’s largest annual electricity supply contract has been awarded to EDF Energy

E

DF Energy has been awarded the UK’s largest annual electricity supply contract by the Crown Commercial Service following a competitive tender process.

The contract includes power for hospitals, motorways, police stations and schools.

There is also a requirement for expertise to deliver energy efficiency savings.

The renewal of the multiibillion-pound fouryear agreement will see EDF Energy continue to supply electricity to thousands of public buildings and sites across central and local government, including schools, the NHS, the Highways Agency and major cultural assets such as the National Gallery.

The contract covers about 8,000 sites, equivalent to 9.6 TWh of electricity a year or enough to power 2.3 million UK homes.

The Crown Commercial Service is a government

agency providing commercial and procurement services for government departments and the UK public sector.

As part of the deal, public sector customers will be offered expert advice on energy efficiency to help them reduce their energy consumption.

The announcement is a major business contract success for EDF Energy, which won a 10-year contract to supply Network Rail in 2013.

EDF Energy CEO Vincent de Rivaz said: “Our employees are proud to be able to provide electricity for many of Britain’s hospitals, schools and key public buildings. They can see a direct link between their hard work in power stations and the electricity used in their own communities and across the country.

“We are proud to again be awarded the contract to supply the public services that millions of people depend on every day. We are also committed to tackling

The Crown Commercial Service contract covers iconic buildings including the National Gallery

climate change and helping our customers reduce their energy consumption. That is why we will offer our expertise to support the government’s drive for increased energy efficiency.”

Matt Denham, executive director, commercial delivery at the Crown Commercial Service, said: “This agreement will provide the

public sector with a costeffective solution for their electricity requirements.

“Awarded following a competitive tender process, it will deliver improved value for the taxpayer while helping customers to use energy more efficiently and manage their demand to reduce their overall energy costs.” we&e edfenergy.co.uk

Compliance Checker cuts through regulation red tape

L

arge businesses across the UK can save time spent on complying with energy regulation, thanks to a new interactive tool developed by energy consultancy Utilyx.

The Compliance Checker is simple and easy to use.

Once organisations have completed a set of 10 basic questions, the Checker will provide them with a summary of their business energy regulation requirements. It will highlight the schemes

18 April/May 2015 | water energy & environment

businesses might need to comply with and the documentation required as well as informing users of the green subsidies that they may be eligible for.

Utilyx, which is owned by strategic outsourcing company Mitie, developed the online tool following feedback from customers that energy compliance is becoming increasingly complex and time consuming.

In particular, businesses have highlighted that there

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wiss company EnergyMarketPrice, a global energy and commodity market intelligence provider, has launched a new way to access energy data and key market information.

Energy Cockpit provides access to end-of-day settlement energy prices, historical prices and other reference data, and is available on a fully personalised web platform tailored to customers’ needs.

It is designed to help customers access and interpret key energy market data easier, faster and more efficiently.

Energy Cockpit delivers directly to a customer’s desktop (service is also available on native Apple iOS and Android applications) a customisable cloud-based and secure web dashboard of end-of-day energy prices for key energy markets in

Europe, North America, South America, Asia and Australia.

It provides a powerful database with historical price data and other reference information for oil, electricity, natural gas, coal, biofuels, metals, emissions certificates and other commodities.

Features such as the possibility to personalise data applying custom price formulas, compare and gain key market trend insights pushed to the user’s email box can save valuable time and resources.

Stephane Querinjean, managing director at Market Intelligence Group SA, said: “With commodity markets in a period of rapid change, the need for easy and fast access to commodity pricing data has never been more important.

With Energy Cockpit, energy professionals, analysts and procurement managers can take better informed and confident decisions, gaining deep market insight quickly for managing better their energy portfolio.” energymarketprice.com

is an overlap between the documentation requirements of different schemes.

Utilyx head of consulting Sarah Samuel said: “Our clients tell us that keeping on top of energy compliance is costing them more time, money and resource.

“With a growing number of schemes to comply with, the multiple deadlines and overlapping documentation requirements are becoming a burden for businesses.“ Samuel added: “The Compliance Checker is aimed at helping companies cut through this complexity and

find out in a few minutes which schemes they might need to comply with, the documentation required and the benefits of doing so.”

Utilyx has a proven track record in energy regulation compliance and extensive experience in producing fully compliant evidence packs for the Carbon Reduction Commitment (CRC), Mandatory Carbon Reporting (MCR) and the Carbon Trust Standard, using legislation and compliance as an opportunity to drive down costs. utilyxcompliancechecker.com

theenergyst.com theenergyst.com

The great oil price drop and your energy costs

Power prices have also been In the 10 months since June last With few individual UK companies able Some advisors are reluctant or even An advisor who knows the difference afford to waste £162 million, these unable to explain their strategy, leaving between a good and bad power strategy, driven lower.

With gas-fired year,tofindings the may price of Brent Crude Oil, also have far greater their clients operating on blind faith without you losing £162 million whilst implications for thebenchmark Government whose for rather than a clear understanding.

An they work it out. generation acting as the UK’s the energy European the spend is 180 times greater than over-reliance on a single strategy or the company in our study. be itits VAR Analysismarginal or simple Lock power As one supply, of the largest energy gas5 prices commodity, lost in excess oftool, half / Unlock mechanisms should also be consultants in the UK, BIU are av One falling other notable difference was the avoided. passionate aboutinfluence maintaining on a tend to have a major value, from highs of $115/bbl apparent volatility inherent within reputation for excellence. some strategies, with budgets being WHAT TO LOOK FOR power prices. to $46/bbl.

The reason, put simply, potentially exposed to 100% increases As a minimum, we recommend: At BIU, we deal in facts not fiction which on a year-on-year basis.

An independent advisor who can is why we save our customers millions.

Unfortunately, the market is never is a mismatch between supply and clearly define the proposed strategy, WHAT TO AVOID free of the all too common smoke and If you believe in results rather than predictableunproven and despite bearish demand to the tune of circamirrors. two In a changing market, the temptation theories then talk to one of to believe in an unproven, but new to our specialist energy procurement pressure low oil theto million barrels you strategy can beper high, day. especially if An advisor who can demonstrate true from professionals who prices, will be happy you have previously suffered from optimisation and not just an explain how we really can help.

Oil pricespriceover and aboveprice $100/ unexpected increases. individual ad-hoc price. market tends to find support from An advisor who has access to all bbl Hhas encouraged in price dataanywhere consolidated via a fully it can when prices are owever, as the phrase goes, investment jumping integrated procurement system. out of the frying pan into the fire is not Contact BIU now on: low and with several geopolitical higher costandfields from the answer, thankfully not the the only majority 01253 789 816 option. If an advisor can only offer you An advisor who is accredited and uncertainties of the oilofmajors, in nonone way doing things,culminating then you must regulated by the FSA. and macroeconomic Info@biu.com question if they are truly advising you of An advisor who can coherently explain your best options or of theirparticularly only lock/unlock and low prices are far from abound, conventional drilling, in mechanisms stra demonstrate when to use them and strategy. perhaps more importantly, when not certain. the United States. to.

Enough of the theory, the Add this to slower growth in China pertinent question remains, does and Europe, the rise of renewables you energy procurement strategy and the increasingly interconnected and/or contract allow you to take global gas market and prices have advantage of changes in the market? collapsed while the unwillingness In today’s low-price environment of Opec to react on supply side has it is vital that large energy users can caused the longest bear run since both hedge against any potential the financial crisis. upward risk while being able to take So, will the crash push the price advantage of lower ‘within period’ of power and gas lower? Yes, and it prices. Over the past 12 months, has already, and should continue to as prices have continued to fall depress gas prices while oil prices well into each season, it has paid remain low. Two of the UK’s major dividends having a balanced and sources of gas supply, pipelined gas risk-managed purchasing strategy. from Russia via Europe and liquefied natural gas, the majority of which stems from the Middle East, are Contact one of our energy indexed linked to the price of oil on a consultants today to find six- to nine-month lag. out how we can save your European gas suppliers have business time and money begun to draw the maximum on your energy. Call 01253 volumes their contracts allow, 789816, email Procurement. which has therefore weighed on gas prices across Europe by forcing Team@biu.com or log on to other sources to lower their prices blu.com competitively.

Gas & ElEcTriciTy

Is Triad past its peak?

National Grid’s ‘Triad’ peak charging methodology has helped reduce demand peaks since the early 1990s. Will it still be effective as the market changes, asks Brendan Coyne

T

riad is how National Grid charges major energy consumers for use of the transmission system, simultaneously flattening winter peak demand.

Triad periods are defined as the three half hours of highest peak demand over winter, at least 10 days apart. Annual charges for major energy users are based on how much energy they used during those Triad periods. National Grid works out retrospectively when Triad periods occurred, so for users it is a guessing game. But reducing usage

during triad periods makes a big difference to bills, and as a result a service industry has sprung up around Triad avoidance. An army of third parties sends warnings to clients when they think a Triad may be imminent.

At that point, up to 2GW of demand will switch off, according to National Grid’s estimates, meaning Triad is doing its job. But other mechanisms are being introduced to reduce peak demand, including measures in the Capacity Market, and National Grid’s new Demand Side Balancing Reserve.

20 April/May 2015 | water energy & environment

Will Triad remain fit for purpose? A National Grid spokesperson said it had “no current plans to change the Triad charging methodology and we’d of course need to discuss any changes with the regulator Ofgem”. But the transmission system operator remains “keen to hear peoples’ views as the energy system becomes smarter”.

Some in the industry do think change is not far off. Jon Ferris, head of risk management Utilitywise, suggests Triad’s flaws are starting to show. Transmission costs are rising and peak

theenergyst.com

demand falling, so the costs of the transmission network are being recovered from a smaller volume of consumption and “the rates have to go up to compensate”.

Meanwhile, a flattening off of peak demand throughout the winter in combination with milder winters have made Triads “much more difficult to predict… so you end up turning down [consumption] much more frequently if you want to be certain of hitting a Triad”.

Ferris believes it is becoming a “confused” mechanism. “You are trying to incentivise response when the system needs it most. But it is not really doing that because the market signals are not known until after the fact. So just hitting the three Triads when the peak demand is relatively flat means you might not get a demand reduction on relatively high demand point.

But you do in others that are lower demand but more than 10 days away from a peak.

“So it does seem to be flawed and I think those flaws will become more apparent.”

He would scrap demand side response in the Capacity Mechanism and instead hope that the forthcoming electricity balancing significant code review (EBSCR) will reward flexible plant better.

But Alfa Energy bureau services team leader Samer Muratovic says his personal prediction is that Triad will stay in place, because it is proven.

He says: “I think [Triad] will remain in play until we see a substantial return on the new [programmes] coming in – the demand response [mechanisms] and those type of actions. If they prove to be useful and we see a substantial amount of money coming in through those incentives, then we might see a change in how the Triads work and how the mechanism will be tweaked to fit in with that.” Until

theenergyst.com

“

You are trying to incentivise response when the system needs it most. But it is not really doing that because the market signals are not known until after the fact

then, it is business as usual.

Major Energy Users Council Northern Ireland manager Don McGarrigle agrees: “I don’t see anything competing with Triad at the moment – capacity, STOR, all these other things are year round activities.”

McGarrigle questions how many businesses would sign up to a capacity mechanism and take an active role, given the existence of STOR and frequency response.

“There are only so many load management possibilities within a manufacturing business. You still have to get widgets out the door.”

He adds: “The prices for Triad periods are increasing now, which makes it all the more important for large users to avoid them, because there is more money there.”

The MEUC, says McGarrigle, would “adamantly oppose any flattening out of the Triad charging methodology…

Because if 2GW of load management prevents very inefficient plant from operating, everybody benefits.”

Stuart Lea, head of energy trading at Inenco, says any move away from Triad “goes against years

of thinking and action”.

However, Lea and McGarrigle agree with Ferris that accurately forecasting a Triad period is becoming more difficult. Lea says that is annoying customers: “There are a lot of [alerts] providers and what they don’t want to do is fail to call a Triad. The response has been to de-risk it by just calling loads of them, which is not acceptable.”

Moreover, the consensus is that Triads could start to fall outside of the traditional evening peak times, due to mild winters and intermittent generation, making them even harder to predict.

Mervyn Bowden, a consultant and former head of energy management at Marks & Spencer, thinks Triad may only have a couple of years before being usurped by other measures. Bowden says that unless Triad alerts are completely reliable, they are “a waste of time”. “[Some alert systems] don’t necessarily tell end users that there is going to be a Triad event today, and provide insufficient time to do anything about it.”

He thinks peak reduction has been skewed by a weak economy and the recession.

But he says end-users could also be more innovative.

He cites supermarkets as an example. “All the refrigeration could be put on defrost for significantly longer periods. They would save 35-40% of their load [during a Triad]. But they are very reticent because of the risk of equipment failure.”

Bowden thinks there is sufficient conventional generation as well as renewables coming online to raise questions about Triad in its current form. Others suggest it has at least a few years to run – time enough for new measures like EBSCR to take effect. we&e This article was originally published in New Power magazine (www.newpower.info)

April/May 2015 | water energy & environment

21

ViEwpoint

Producing the business case for investment in energy efficiency Energy and facilities managers need to provide a clear message and one that can withstand intense scrutiny of the background facts, writes Esta director Robin Hale

E

nergy and the boardroom still remains one of the major bugbears for energy professionals eager to push the envelope on implementing energy savings in their organisations.

However, advances in technology, a greater understanding of the payback and the need for increased compliance and regulation, not to mention energy prices – is pressuring finance departments to look more

closely at energy saving measures put forward by energy and facilities managers.

In a world where energy is increasingly becoming a significant cost – even in an office-based environment, it is important that energy professionals speak the same language as their financial counterparts. Highlighting the risk to the business by doing nothing as well as driving home the potential benefits and understanding all the financials is just

22 April/May 2015 | water energy & environment

the starting point for making this connection.

As demonstrated in the Dragons’ Den TV programme, those pitching need to provide a clear message and one that can withstand intense scrutiny of the background facts.

We all know that there are many reasons to reduce energy usage – from risk management to cost saving and from legislation compliance to your carbon footprin – but the main, ever-present reason is due

Sponsored column

Are you ready for the open water market?

“

The case should be short, concise and easy to read. You must be ready to answer questions on the spot and be able to give solid reasons for your preferred course of action to energy price cost, which is as volatile as ever. Higher prices have a dramatic effect on an organisation’s cost base, reducing its competitiveness and making greater energy efficiency necessary.

Your energy budget is made up of four main component parts: price, invoicing, consumption and environment. Each of which is manageable if organisations have the appropriate dedicated capacity and capability.

In some organisations where the only performance indicator for the energy budget is overall cost, the driving factors behind the budget are masked. These component variables can be made transparent through simple performance indicators, which allow non-energy specialists to gain insight into drivers, opportunities and risks for each aspect of the budget.

Getting these messages as well as getting the facts right regarding your organisation’s energy usage will help to make that connection with your board. An essential step to getting the facts right is by understanding best practice energy management. Tools to assist in this include: an energy management system to make it easier to identify energy consumption; automatic monitoring and targeting (aM&T) to verify underlying data and to identify areas or waste; and regular energy audits, to understand where energy is used, by what and to provide solutions to reduce wastage.

In putting together the business case, energy and facilities managers must

theenergyst.com theenergyst.com

understand the finance department’s drivers and take them into account.

This should be considered from the point of what the consequences are of doing nothing; which financial metrics the organisation uses and what they mean; what types of projects are acceptable and how does it assess projects; what the benefits of the proposal are; and the need to present more than one option including the ‘do nothing’ option.

The case should be short, concise and easy to read. You must be ready to answer questions on the spot and be able to give solid reasons for your preferred course of action.

So important is this part of the energy efficiency jigsaw that Esta members and the BRE have produced a publication, entitled Producing the business case for investment in energy efficiency.

Written by Dr Andy Lewry and available from the BRE Bookshop, the publication will expand on some of the thoughts outlined above to assist energy managers in their increasingly difficult role.

And further to the importance of energy efficiency in the UK, Esta is organising an Energy Efficiency Summit, which will take place on 22 October at the Ricoh Arena in Coventry. we&e esta.org.uk The Energy Services and Technology Association represents more than 100 major providers of energy management equipment and services across the UK

With the opening up of the retail market for non-household water customers now less than two years away, Paul WittonDauris, business development manager (water) for Gemserv, says companies need to take a proactive approach to ensure they are compliant.

Open Water’s market architecture plan advised water companies preparing for retail competition to focus their immediate efforts on ensuring they meet level playing field requirements.

That means doing their bit to ensure all retailers in the market have equaly opportunity to compete for customers, irrespective of their size, history or relationship to the wholesaler.

As 2017 nears, exactly how companies should go about this is far from clear. The Water Act does not prescribe legal separation and other competitive markets sport a variety of different models and degrees of wholesale/retail division.

Ultimately the buck will stop with the water companies, and a proactive stance towards these issues is advisable.

While it will be for each company to decide its own precise course of action, our experience in other markets leads us to recommend that a clear, organisational separation is advisable.

Among other things, this helps water companies align their operations with the new market, which is structured on the basis of retail and wholesale activities, and also protects against potential legal action and reputational damage.

Companies will have to make a call in regard to areas such as IT and finance as to where to strike the balance between ensuring

compliance and footing the bill for implementing change.

However, there are two sensible ‘early actions’ companies should consider: splitting out their activities supporting nonhousehold customers into a separate organisational unit and location; and putting up ‘Chinese wall’ information barriers to prevent information exchanges that may breach commercial confidentiality.

More broadly, we are encouraging any company not already under way with level playing field preparations to implement an organisational structure consistent with the likely demands of the competitive market and to ready their compliance arrangements.

Each company should also be designing and implementing its market readiness programme, so it is able to engage with all stakeholders in the market in a timely fashion.

Gemserv helped deliver and operate the world’s first competitive water market in Scotland and is currently assisting various water companies to develop strategies that address the changes in the retail market scheduled for 2017.

monitoring & targeting

Utilitywise makes t-mac acquisition Utilitywise has acquired t-mac Technologies as part of long-term strategy focused on the broader management of utilities in general

e

nergy and water cost management consultancy Utilitywise has acquired utility management software firm t-mac Technologies in a deal that values the software company at about £10m.

The deal was announced as Utilitywise posted strong growth for the six months to January.

Revenue for the period grew 42% year on year to £29.9m with profit up 49% to £7.3m.

Through its own proprietary technology and software, t-mac allows clients to monitor and reduce their energy consumption, making savings and helping them comply with government legislation.

The purchase is in line with Utilitywise’s established strategy of broadening the services it offers in response to customer needs. t-mac’s modern, cloudbased technology provides

Utilitywise with the assets and skills to provide new services to its customers as part of a complete utility management plan: the plan covers all aspects of a customer’s interaction with utilities provision from procurement to management, monitoring, and reduction of electricity, gas and water.

The acquisition enhances existing t-mac customer relationships, while providing an opportunity for Utilitywise’s current customer base to benefit from t-mac’s cutting-edge technology. t-mac provides real-time energy and environmental metering and monitoring as well as building controls and equipment performance management. Its use of an interactive, cloud-based central software platform means users can analyse, manage and operate one or many buildings through

single software interface from anywhere in the world.

Utilitywise ceo Geoff Thompson said: “We are committed to listening to our customers. We know that they are increasingly looking for rapid impact, cost-effective services that give them more control over electricity, gas and water usage and protect their businesses against future price volatility. “our services – delivered as part of a complete utility management plan – are about helping our customers drive their business efficiency. As a business we have always invested in technology to deliver added-value services to our customers and we were impressed with t-mac’s innovative, market-leading cloud-based solutions.

“This acquisition will allow us to reach new customers and to provide energy

Greater Manchester Police in arresting development

i

MServ energy management solutions are helping Greater Manchester Police (GMP) to reduce costs in a tough economic climate.

The force’s sustainability officer Helen Wilson explained the problems the force faced in understanding energy use across a multi-site portfolio: “GMP is responsible for over 80 sites across Manchester, which cover everything from a 19th century police station renovated into a museum, to brand new purpose built buildings. We have offices, workshops and even stables.

“In the current economic

climate there is a growing pressure across all police branches to reduce costs and carbon emissions. one of the ways we are approaching this challenge is to understand our energy usage, thus allowing us to make informed decisions on how we can reduce energy consumption and ultimately lower our bills.”

IMServ europe worked with GMP to gain a better understanding of its energy usage, and further drive its passion to be more sustainable.

Wilson continued: “We installed IMServ’s microbuilding management solutions

24 April/May 2015 | water energy & environment

“

The micro-BMS service provided us with an energy saving of 70%

(BMS) into one of our smaller buildings which houses part of the IT department. This building is too small to warrant installing a full BMS system.

However, we had limited control over its energy usage and were keen to assess any areas for potential cost savings.”

IMServ’s micro-BMS is designed to enable companies or organisations to monitor, understand and control building energy consumption such as lighting, heating, air conditioning and boilers.

This can be done remotely and automatically, without interference from local staff.

We were impressed with t-mac’s innovative, marketleading cloud-based solutions

client base as we have secured business with some high profile, blue-chip clients in the UK, europe and Asia Pacific.

“We will be bringing all of our technical expertise and solutions to the Utilitywise Group, helping to expand the group business model by offering energy management and carbon reduction technologies to its growing client base.

We are looking forward to working together to deliver a complete utility management solution to our customers.”

RBS has provided a £25m revolving facility to support the acquisition and the firm’s continued business growth aspirations. Graham Robinson, relationship director at RBS, said: “Utilitywise is a strong, growing business and a true success story for the North east. We have worked hard to deliver an effective, innovative funding solution which supports the firm’s business growth strategy. We have a strong relationship with Utilitywise, which allows for us to deliver funding solutions tailored to it business needs.” we&e utilitywise.com

Wilson explained: “Usage in this building is quite high, but we were particularly concerned with the level of energy being used to heat the premises.

Prior to installing the microBMS we struggled to match heating times to occupation and there was no way to remotely monitor or control it. IMServ’s service allowed us to set a particular temperature for the building while the staff were at work, then during the night and at weekends the heating would switch off.

“With an automated system in place you also don’t have to rely on other people remembering to switch the heating on and off, or worry about people tampering

with the boiler controls. “over the three-month pilot period, the micro-BMS service provided us with an energy saving of 70%, with a return on investment achieved well within that time frame. There has obviously been considerable cost savings involved in this, which help towards our ultimate goal of reducing our energy bill.

“IMServ has enabled us to install a BMS system where it would not have been possible otherwise. By doing so we have been able to investigate, and improve energy consumption in the building, contributing to our ultimate goal of reducing the cost of energy used by GMP.” imserv.com

monitoring and controls services to our existing customer base of more than 23,000 SMe and industrial and commercial customers.

“The team at Utilitywise believes passionately in making the energy sector easier to do business with, and we’re excited to be working with Lisa Gingell, Jonathan Wilkinson and their fantastic team to bring our combined offer to market.”

Lisa Gingell, co-founder and director at t-mac, commented: “We are delighted to be joining the Utilitywise Group; these are exciting times for both of our businesses. our key focus in the last decade has been on technology and innovation; and we’re delighted this has been recognised by the Utilitywise team. evidence of our success is seen through our fantastic

“

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12/03/2014 21:5

Monitoring & targeting

Go with the flow Flowmeter proves its worth for Low Carbon Solutions in combined heat and power generation

M

icronics’ Portaflow 220A flowmeter has been successfully used to prove the efficiency of combined heat and power (CHP) generators by a UK specialist in the field of energy analysis and combined heat and power.

Based in County Antrim and established in 2004, Low Carbon Solutions provides customers across the UK and Ireland with advanced solutions to their energy requirements to reduce their carbon footprints.

CHP allows companies to reclaim more than 80% of the energy used from generating electricity as both heat and power, compared with less than 50% from just electricity. This is an important component in the drive to create more

energy efficient buildings.

Low Carbon Solutions technical director Adrian Frise was pleased with the selection of the Micronics Portaflow 220A. “The Portaflo unit has been used successfully on a number of occasions and for several purposes,” he said.

“For example, where we suspected that there was a problem with the flow of coolant through the cooling system, it aided the diagnostics process so that we were able to locate the fault. It is also used for detecting other low-flow situations in CHP heating circuits and, importantly, used as a reliable independent instrument to prove generated heat output figures from our CHPs to our clients.”

The Micronics Portaflow 220 portable flowmeter is designed to work with clamp-

the Portaflow 220a can be used with a range of pipe sizes

on transducers to enable the flow of a liquid within a closed pipe to be measured accurately without needing to insert any mechanical parts through the pipe wall or protrude into the flow system. This was particularly important to reduce downtime in constantly busy locations. Using ultrasonic

transit time techniques, the Portaflow 220 can be used with a wide range of pipe sizes, material and fluid temperatures.

Micronics flowmeters will continue to be used by Low Carbon Solutions at its installations throughout the UK and Ireland. we&e micronicsflowmeters.com

Effective project management

g

lobal access, transparency of data, automatic report generation and sorting of projects by multiple criteria are just some of the features of a software tool, Energy Activator, launched by energy specialist JRP Solutions.

Energy Activator is a project management and reporting tool that enables the capture of energy reduction ideas and facilitates the effective management of a portfolio of energy reduction projects that will significantly improve the cost, environmental and

26 April/May 2015 | water energy & environment

operational performance of industrial businesses.

Improvement ideas and opportunities are uploaded to an online database, where they are stored and evaluated in terms of their cost, energy and environmental impact and then prioritised accordingly.

Selected improvement opportunities are subjected to a rigorous gated process requiring stakeholder sign-off at each stage before they can then move on to the next stage of assessment and approval.

Individual improvement opportunities may be grouped together to form unique projects, with all associated documents, images and schematics being stored on the same database,

providing easy access to all relevant information.

Energy Activator may be accessed from anywhere in the world and the visibility of the stored information may be restricted, if required, in accordance with the specific needs of the business.

JRP managing director, Jes Rutter said: “From our experience working to deliver continuous improvement projects, we understood exactly the challenges faced by organisations trying to manage multiple projects across multiple sites and often globally too. We have designed and developed Energy Activator to address these challenges.” jrpsolutions.com

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21/01/2014 14:46

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Viewpoint

Why have so few people heard of Esos?

Energy Managers Association CEO Lord Redesdale ask why despite the huge amount of information released on Energy Savings Opportunity Scheme there is still little awareness of the scheme

H

undreds of articles have been written, numerous presentations, workshops and webinars organised to inform about the Energy Savings Opportunity Scheme (Esos), and yet there still is a little awareness about the scheme among target businesses. Esos is a mandatory requirement relevant to 10,000-14,000 large companies.

Businesses that fall under the Esos remit need to conduct an energy audit and compile their findings in a form of a report signed by a lead assessor and the company’s director(s).

It has been expected that Esos should have created enormous amount of work for lead assessors and their teams, but most organisations, despite the fact that it needs to be completed by December, have not even started the process.

The reasons behind the Esos apathy can be threefold: companies do not consider energy consumption and its reduction to be the highest of their priorities; companies find Esos to be a burden rather than an opportunity; company’s do not realise their reputation may be at risk due to noncompliance.

One of the major problems energy managers face is that the boards often ignore energy and therefore totally ignore energy efficiency measures.

Britain has implemented Esos in a slightly different

28 April/May 2015 | water energy & environment

way to the rest of Europe and one of the requirements of the process is that the completion of the assessment requires one or two members of the board signing off the assessment.

Esos could have a major impact on the way boards

look at energy efficiency.

A mandatory scheme for large companies with more than 250 employees or a turnover in excess of ¤50 million has been seen as yet more European interference.

However, the reality is

“

If we have a blackout next year companies will not only face higher costs but will start to discuss energy as a risk factor that could have real impact on the viability of their business

that any scheme that forces boards to recognise the role of energy efficiency, making them financially secure or even sustainable, has to be a good idea.

Esos is the British variant of the energy audit in the European Directive on Energy Efficiency. The assessment is a means of getting European companies to assess their needs in energy efficiency and hopefully undertake such measures.

It could be the cost burden of undertaking Esos that stands in the way and prevents companies moving forward. There are rumours that the fees charged for Esos assessment services offered by registered Esos lead assessor vary significantly and can reach extraordinary levels.

However, a large number of companies could undertake the Esos process in-house.

The EMA runs a course on training lead assessors for £1,100 which would allow their employees to undertake Esos internally and only hiring specialist consultant to fill any knowledge gap they may have. It is surprising how few energy managers have any transport knowledge.

Many energy managers already have identified the issues that they would wish to focus on. There are really only a few measures that would equal the energy efficiency of changing boilers, air conditioning units or energy intensive plant. Often these items even though very

theenergyst.com

inefficient have been run well passed their replacement date because of the Capex involved in changing them.

One area that could help energy managers is to focus on one of the cheapest but most cost-effective measures which is training and behaviour change.

Businesses may not yet realise that noncompliance can harm their reputation.

Decc named its project Energy Savings Opportunity Scheme to focus on the opportunity created by doing this assessment.

It is perhaps an indication of how far we have to go to see how few companies have embraced this measure. The past few years’ energy was seen in terms of carbon and sustainability issue. Following a particularly turbulent election period, there is a real possibility of a 25% increase in energy costs and real concern about supply considering how small the capacity to generation margin has shrunk.

If we have a blackout next year companies will not only face higher costs but will start to discuss energy as a risk factor that could have real impact on the viability of their business. A cheap, effective survey, Esos, will then be seen as a very good idea. we&e Lord Redesdale established the Energy Managers Association in February 2012 and it now represents energy managers from companies with a collective energy spend of about £3bn

theema.org.uk

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building controls

Sustainability in the built environment The UK Green Building Council’s new chief executive talks about the current challenges facing the industry

J

ulie Hirigoyen joined the UK Green Building Council in April from international property consultant JLL, for which she was UK head of sustainability.

What inspired you to pursue a career in sustainability within the building industry?

My inspiration comes from a deep-seated respect for the natural environment, and a distress in witnessing its destruction. I believe in the interconnectedness of all living things, whereby a perfect balance and harmony is the natural order of Life. Making changes to one or other of the underlying system conditions is likely to irreversibly affect that balance, and wreak havoc to a system in decline.

The fact I ended up focusing on property was more by accident than by design. But once I began working in this

industry, I quickly discovered that buildings have a huge impact on the planet and also present a massive opportunity to negate that impact.

Buildings’ effect on people is also paramount, not just on health and wellbeing but local economies, communities and our overall quality of life.

I can’t think of many more important places to focus, so for this reason I’ve never looked back on my decision to work in the built environment.

How has your experience within the industry shaped your view on the importance of sustainability?

My experience over the past 20 years has convinced me that buildings and cities are at the heart of what we need to change if we are to achieve sustainable development.

There’s been a huge increase in the importance of this

Bridging the energy performance gap in buildings

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new report produced by the BRE Trust and the Energy Servicesand Technology Association (Esta) aims to help facilities managers and building operators bridge the energy performance gap in their building portfolio so consumption and costs can be reduced for business benefit.

According to Esta director Robin Hale: “Buildings rarely perform as well as their designers predicted – energy consumption and costs can be as much as double what was expected with damaging financial implications for

occupant organisations. This ‘performance gap’ and how we tackle it is one of the most critical challenges faced by the built environment sector.

As well as outlining the issues, this report shows how a freely available tool can be used to find the solutions.”

Currently, operators of commercial and public sector buildings have two indicators of a building’s energy performance available to them. The first is an Energy Performance Certificate (EPC) rating, which is a theoretical assessment of a buildings energy needs in

30 April/May 2015 | water energy & environment

optimum conditions. The second is a Display Energy Certificate (DEC), which is based on actual energy consumption. The DEC is almost always higher due to occupant behaviour, nonstandard hours of operation, and unregulated loads such as IT and office equipment.

In the report, titled Bridging the performance gap – understanding predicted and actual building operational energy (IP 1/15) – author Andy Lewry explains how the UK government’s Green Deal Assessment tool – GD-SBEM – can be used to reconcile the

“

One of the biggest obstacles to the adoption of energy efficiency measures in an organisation is a poor business case

differences between the two sets of information. By inputting both theoretical and actual consumption data, GD-SBEM can help building operators really understand the energy

theenergyst.com

What are the biggest challenges currently facing the industry?

The building and construction industry is fragmented.

It suffers from a silo mentality and it is hard to reach a consensus on what represents a truly sustainable outcome. There is a distant relationship between building owners and the occupiers who often have conflicting agendas and priorities.

There is a proliferation of tools, methodologies and rating systems, and the complexity of the landscape makes it difficult for businesses to navigate it.

There is also a real skills and education shortage which represents perhaps the biggest challenge we face. There are plenty of

What milestones should the industry seek to achieve by 2020 to ensure it is playing Where has the industry its part in tackling made progress? climate change?

One area we have Businesses done really well should set long on from a policy term targets perspective that align and industry Industry needs to with long response have long-term term horizons is on new and think build. New targets to achieve about what that buildings today its aims means from a are far more business planning efficient than they perspective. I would were 10 years ago and expect companies investing we have to applaud that. in real estate to be thinking It’s testament to that policy carefully about their exposure framework that the industry to fossil fuel investments and has risen to the challenge, the whole issue of stranded and I think we’re starting to assets – that can be applied make real progress here. as easily to buildings as to reserves in the ground.

What role can business That sort of careful play in ensuring we achieve investment and long-term a positive outcome at planning process would show december’s un climate governments the way forward. negotiations in Paris?

Businesses are ahead of the What does a sustainable curve and therefore they built environment should lead by example. They look like to you? can and should put pressure Buildings and urban surface on governments to sign up areas would be used far more to more meaningful targets cleverly to generate clean and and also put pressure on

decentralised energy. There’ll be a massive increase in green infrastructure – whether that’s urban farming, green walls, green roofs or green spaces.

A sustainable urban environment would look quite different with satellite residential constellations around urban conurbations, connected by high speed, low carbon transport systems.

For resource efficiency, different types of construction that allow far less waste would be the norm and we’d have more sophisticated ways of thinking about how we design and assemble buildings in terms of resources and waste.

The way in which people individually and as businesses conceive of where they want to locate will have resonance with the type of people and talent they wish to attract. We’d have far more integrated design, and health and productivity would be much higher on the agenda in terms of the space organisations occupy.

And technology such as the Internet of Things would enable us to self-manage intelligent buildings to eradicate problems such as the performance gap. we&e ukgbc.org

use in a building, highlighting where improvements can be made and the costs and related payback periods of investment.

The tool can also help larger

a sister publication: Producing the business case for investment in energy efficiency (IP2/15).

This offers practical guidance to building operators on how to make a sound financial case for investing in energy efficiency improvements that will bridge the energy performance gap.

“One of the biggest obstacles to the adoption of energy efficiency measures in an organisation is a poor business case,” says Lewry.

“Typically you have a threeminute window of time in which to make a compelling pitch. Critical to your success are clear and concise metrics that address the consequences of a do-nothing strategy and messaging that appeal to a

non-technical, financially driven audience. This guide shows you how to get it right.”

Esta’s Hale adds: “Both reports are issued at a critical time as the sector gets to grips with the introduction of Esos, the government’s mandatory energy assessment and energy saving identification scheme for large organisations and the EU’s energy performance of buildings directive which will make it illegal to rent a building that is energy inefficient by 2018.’

Copies of IP 1/15 and IP 2/15 are available to order or download from brebookshop. com. Use the code ‘PerfGap’for a 20% discount. bre.co.uk esta.org.uk

agenda, since when I first started out, we were knocking on closed doors. But we must not kid ourselves – we are only at the early stages of the journey. We are still exceeding the limits of the planet, there are still very few genuinely net positive buildings or companies out there, and we are not achieving sustainability as a scientific concept yet – there is much more to do.

theenergyst.com

organisations that see how important sustainability is but don’t have the technical know-how to tackle it.

governments that still fail to take this seriously enough.

2020

organisations report against the requirements of the UK government’s Energy Savings Opportunity Scheme (Esos).

Accompanying the report is

April/May 2015 | water energy & environment

31

BUILDING CONTROLS

A smart solution Incity, the soon-to-be -completed tallest skyscaper in Lyon, uses Distech’s Smart Room Control solution, an all-in-one system for the control of HVAC, lighting and sunblinds

T

he Incity tower is the first large-scale installation using the BACnet MSTP protocol with the Smart Room Control solution, an all-inone system for the control of HVAC, lighting and sunblinds.

The skyscraper, which peaks at 200m, will be the highest in Lyon and the third tallest in France. Its inauguration will be in October 2015.

High Standards The Smart Room Control solution uses the BACnet protocol and interfaces with a bulkhead software.

The technical specifications required the acquisition of energy performance certifications (High Quality Environmental, BBCEffinergie, BREEAM Excellent) with the aim of creating an efficient and energy saving control system along with room spaces modularity.

A modular and adjustable solution The programmable controller series, combined with lighting and sunblind expansion modules, has enabled Distech to answer the project’s specifications. Distech Controls offers a modular solution, based on open standards, for a combined control of HVAC, lighting and sunblinds in each office room. The solution optimises energy efficiency and comfort in buildings, all the while reducing operating costs.

The Smart Room Control delivers energy savings using occupancy-based control strategies, daylight harvesting based on light level sensing

“

The programmable controller series combined with lighting and sunblind expansion modules has enabled Distech to answer the project’s [energy performance] specifications

32 April/May 2015 | water energy & environment

and natural light optimisation.

Automation of shades/ sunblinds increases the insulation factor of windows.

This is able to yield energy savings in excess of 30% on HVAC and up to 60% on lighting as demonstrated by a study at the Hannover University of Applied Sciences and Arts in Germany.

An open and scalable solution The Smart Room Control solution has enabled the installer to build a box that will integrate for each room: the HVAC controller, the sunblind expansion modules (24V or 230V depending on the configuration) and the lighting expansion modules (1-10V gradation), offering an optimal installation.

An all-in-one system reduces the network’s infrastructure, indeed it lowers the number of BACnet MSTP routers since there is only one device per room. Only one main HVAC controller has to be configured to enable all

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1700 ECB-PTU Controllers 1700 ECx-Light, 1-10 1100 ECx-Blind, 24V 300 ECx-Blind, 230V 1900 EC-Multi-Sensor

functionalities in a room.

The lighting and sunblind expansion modules operate as soon as they are connected and powered by the main HVAC controller.

The Smart Room Control solution provides seamless functional integration, lower operational and maintenance costs and energy savings.

Alongside this, studies by the Chartered Institution of Building Services Engineers have shown an increase in employee productivity of up to 20% with appropriate lighting, up to 50% with appropriate temperature settings, and up to 9% when provided with control over their local set points. we&e distech-controls.com

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energy u | m | r

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Dates for your diary:

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including:

ESOS: Creating a lasting legacy from legislation understand your energy portfolio | manage your energy data and information | reduce your energy costs and consumption ESTA (energy services and technology association) is a not-for-profit limited company owned by its members. At the heart of everything we do is our aim to help our members improve their industry sector, business connections and enhance opportunities to market. We believe that our members’ business success is the essential precursor for real improvement in energy efficiency in the UK.

MULTI-PURPOSE TEMPERATURE SENSORS ATC Semitec’s AT-11 series temperature sensor offers the best accuracy/cost/quality ratio available in the industry. Precise to ±0.3deg.K at 25deg.C and with a fast-response tip (only 6 x 5 x 15mm long), the AT-11 accurately controls the air or water temperature in your application up to 105deg.C. The AT-11 also has a 3kV di-electric rating and owing to the sensor tip/leadwire insulation being made from the same material, it offers peace of mind in applications where moisture ingress has previously been a problem.

These cost-effective sensors are perfectly suited for use in energy-recovery systems, air handling units, underfloor heating and other ATC Semitec Ltd HVAC applications.

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Lighting

Ministry of light The Ministry of Defence has leapt into the LED era with major multi-site lighting upgrade from sodium SON lamps

A

cross UK government ministries and organisations, the pressure is on senior personnel to reduce costs in these economically straitened times. There is also a growing awareness that these bodies need to be operating in a technologically efficient fashion that will have the least possible negative impact on the environment.

These impulses dovetail neatly with LED lighting, whose deployment in government facilities has become increasingly commonplace over the past few years.

The Ministry of Defence is the latest organisation to undertake an upgrade, seeking reduced energy usage and maintenance costs through a Defence Infrastructure Organisation (DIO) initiative.

Before

primarily on their short payback period – the quicker the payback, the more likely the project was to be funded,” explains Energys Group Short payback period managing director Kevin Cox. With multiple sites involved A long-term leading in the scheme, and specialist in energyan obvious need saving technologies, to minimise Energys provided disruption, a grand total a retrofit of 5,694 LED solution lamps to represented replace the Lumens per watt the best way outdated SONs. at which the LEDs forward.

Highlighting Energys the versatility operate Group’s New and robustness of Vision range the Energys fixtures, of LED lamps was the new lamps have chosen for use wherever the been installed across multiple existing lighting was suitable sites and environments, for retrofit. The range enables including street lighting, the retrofit conversion of flood lighting, parking spaces existing metal halide and (both indoors and outdoors), sodium SON fixtures. warehouses and hangars, “The decision to use and perimeter lighting.

Energys products was based The installation was carried

140

34 April/May 2015 | water energy & environment

After out during the 2013/14 period as part of the hugely successful ‘Spend to Save’ energy programme.

It has proven to be one of considerable significance for Energys, as Cox observes: “To the best of our knowledge, this is the biggest single project of its kind conducted to date in the UK.” Lasting savings Installed in a wide crosssection of industrial and corporate facilities, Energys’ LED lamps for retrofit applications range in power from 20W to 100W, and can be used to replace SONs ranging from 70W to 400W. The LED lamps deliver a remarkable performance with an efficacy of over 140lm/W. They are also designed for durability, with integral cooling fans and advanced heat management systems

that give a life expectancy in excess of 40,000 hours.

In addition, the lamp driver is fully isolated to ensure that there is very little risk of damage to the sensitive electronics as a result of moisture ingress – a particularly vital consideration given that many of the areas involved in the project are situated outdoors.

“The response to the completed installation has been extremely “In line with the client requirements, the payback period has been very rapid – less than one year, in fact.

“But beyond that, they now have a lighting infrastructure that will deliver substantial energy savings year-afteryear, and will require significantly less in the way of support and maintenance.

It’s a real win-win.” we&e energys-group.co.uk

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Wieland’s high commission Wieland Electric’s Metalynx2 structured wiring system is providing the power and lighting at the newly refurbished Canada House in London’s Trafalgar Square

W

ieland Electric’s popular structured wiring system, Metalynx2, was the preferred choice to connect power and lighting at the newly refurbished Canadian High Commission building in London.

The refurbishment, which included a complete new lighting system, has been incorporated during the amalgamation of two existing buildings occupied by the commission, namely Canada House located in Trafalgar Square and 2-4 Cockspur Street, which is situated to the rear of the main building.

The all-new power and lighting system was installed by mechanical, electrical and public health specialist Bancroft.

The DALI lighting system and power were fed via separate Master Distribution Boxes using Metalynx2, which allowed for home runs to continue along the ceiling power containment route.

Fan coil units and Ligting Control Modules were also fed using Wieland’s extenders, tees and fused spurs.

The pluggable functionality of Metalynx2 allowed Bancroft to maximise productivity on site as the pre-wired, pretested system is manufactured at Wieland’s factory so that on-site installation time simply involves plugging the system together.

The Metalynx2 system is environmentally friendly with zero wastage on site and, when compared with traditional installation methods, can save connectivity time by up to 70%, thereby providing significant savings on installation and programme times.

Metalynx2 is also future proof, allowing changes and reconfiguration as required which is an added benefit,

for the Canadian High Commission as any changes to be made at a later stage can be easily incorporated into the overall scheme.

An expert in the application of structured wiring, Wieland’s team was also on hand to offer on-site management and technical support to Bancroft throughout the project. we&e wieland.co.uk

ControlZAPP

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ControlZAPP can be used to remotely set-up, adjust or override settings such as occupancy detection, time lag, short visit mode, respond to daylight, override ON or OFF etc at different times of day to an accurate schedule, even different holiday and shut down settings. ControlZAPP is easy to install and configure and is ideal for flexible energy saving and end user comfort.

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April/May 2015 | water energy & environment

35

lighting

Savings from dimming at night Helvar’s new nightDim allows energy efficiency for outdoor lighting installations

F

or easy and affordable night time dimming of outdoor spaces that are not in regular use during midnight hours, Helvar’s new nightDim offers huge savings in an innovative and unique standalone solution.

When your outdoor space only requires a minimal amount of lighting throughout night time hours nightDim can automatically dim the lights to 50%.

Helvar’s easy scene set feature enables the scenes to be changed remotely by switching the power on and off in sequences. No additional programming is required, making this an affordable solution with low maintenance costs. The scene setup stays selected until changed.

By using the existing wiring, nightDim is perfect for use on refurbishment projects.

“It is really amazing how such a simple solution for dimming outdoor lighting can be achieved virtually without any control equipment.” says Måns Paul, Helvar product group manager.

The lacquer coating on Helvar’s nDim LED drivers gives them enhanced protection against humidity and damp, improving the suitability for outdoor luminaire use.

Helvar is an international

lighting technologies company serving customers in more than 40 countries and specialising in energy efficient components and solutions for lighting and lighting control systems. we&e helvar.com/nightDim

Discover the CP Electronics range

t

he latest catalogue from CP Electronics, a leader in energy saving controls for commercial, public sector and domestic environments, is now available as a hard copy or download.

Containing information on the company’s flagship range of programmable energy saving controls, systems and connection products for lighting, heating and ventilation, the new catalogue is a must for anyone involved in the specification of lighting components and controls.

In addition to the established CP products,

36 April/May 2015 | water energy & environment

including standalone presence detectors, the popular Vitesse Modular lighting connection system, D-Mate room control system, An-10 wireless lighting control system and the RAPID fully addressable lighting control system, the catalogue includes new additions to the PIR and microwave detector range.

KNX presence detectors are introduced, as well as CP’s 6-pole ceiling rose and the next generation of the RAPID lighting control system. Green-i, a range of movement sensors, control systems, switches and timers designed to save energy

on lighting, heating and ventilation in domestic applications is also covered.

The new catalogue also includes details of CP’s APPS – CP’s free downloadable lighting specifications that are Part L building regulation and BREEAM compliant. There is a focus on the extensive services offered by CP Electronics, particularly commissioning, training and maintenance packages, plus details on a selection of CPD accredited seminars that are now available, on topics such as standalone and fully addressable lighting control solutions. cpelectronics.co.uk

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Viewpoint

Ignore at your peril Under the Energy Savings Opportunity Scheme (Esos), 90% of your significant energy using equipment or consumption in your buildings, process and transport is required to be covered in an energy audit. For some organisations, transport may very well fall into this category and is no longer ‘de minimis’ – ie you can’t ignore it

t

he following provides guidance from the UKAEE on how to get the most out of a transport energy audit and ensure robust systems are in place to track and reduce the impact of this potentially significant energy aspect in your organisation:

1. Understand your data Transport in your organisation may be very diverse and cover a range of vehicles such as grey fleet (ie the expenses mileage your employees receive), company cars or HGVs, diggers, aircraft and ships.

When looking at conducting an audit, do your homework first.

What data already exists, how did you validate it in terms of some sort of analysis and what conclusions did you draw?

Your preliminary data analysis may include looking at fuel and mileage data, which may be accessible via modern tracking systems or on-board diagnostics (OBD), or you may be relying on information being provided to you via a company representative.

Have a written plan of investigation. Trying to pin down the drivers of the commercial vehicles that have a quick turnaround may prove difficult. You may only have a few minutes to speak to a driver. If you are still asking the basic questions, the truck may have left already.

Therefore transport energy auditing is all about people, preparation and planning.

Somehow, the word ‘audit’ though appears to have the effect of making people run away and you could find

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yourself driving around in circles chasing those elusive drivers if you have not prepared in advance.

The number of variables affecting transport data is complex so it is important to have weekly reviews in order to keep on top of the detail. Understanding why a driver took a particular route is important, so leaving it for longer than a week to speak with them may prove difficult to clearly establish the reason. For example, was it because their favourite burger van was on the way or because of an accident?

Preliminary data analysis may include regression analysis such as plotting fuel consumption against distance or time for which one might expect to produce a straight forward relationship. Data errors or unusual usage patterns (for example, due to a change in normal route due to an accident or other issue) can give misleading data and make identifying patterns inherently difficult, so it is important to take extra care here.

Consistency is key to any investigation. Did the drivers consistently fill the vehicle?

How can you be sure of actual use? Benchmark figures may prove useful to compare performance – what a typical

car, van, bus and HGV would expect to consume given different passenger numbers or payloads. You may also be benchmarking internally, using your OBD – comparing the performance of each individual driver. Once you have decided on the performance indicators to use, these as well as typical benchmark figures can be used to then assess performance in any ongoing change programme.

2. Act upon your data analysis Robust data analysis based on understood and consistent data can present opportunities to reduce fuel fleet fuel consumption. For example, these could include: • increasing your payload and therefore efficiency; • introducing speed limiters so drivers drive within the most efficient zone; • providing more efficient batteries so that drivers

•

•

•

•

don’t unnecessarily keep engines running to power electronic equipment such as PDAs when parked up; basic (but crucial) maintenance such as regularly checking tyre pressures, and idling settings; setting up individual driver comparisons or benchmarking drivers with each other (performance league tables or incentives for good performance/ driver of the week); checking the aerodynamics of the vehicle – you may believe your vehicle is aerodynamic but spot the gap and you no longer are; and understand the variances in fuel costs. You may be saving energy but what about the costs? These can be the bigger variable, especially with fluctuating oil prices and variation in geography and filling stations. we&e ukaee.org.uk

transport audit seminars Transport energy audits – a little known area that is required to be covered under the energy Savings Opportunity Scheme – was the subject of a UK Association of Energy Engineers (UKAEE) seminar on 2 March 2015. The meeting was presented

by Conor Molloy, an expert in undertaking transport energy audits for the past 10 years, and a CEN CENELEC SFEM (EU ISO) committee chairman who led development of Part 4 (Transport) of the European Standard, EN16247 – Energy Audits.

The UKAEE is planning a more in-depth transport seminar – a two day event again presented by Molloy on 18 and 19 May 2015 at the National Motorcycle Museum. It will have a truck in tow for practical demonstrations of on board diagnostics. A £50 discount will be provided to those that attended the 2 March event. This is for anyone wanting to further their knowledge in the area and have practical experience of driver diagnostics. For more information, please contact secretary@ukaee.org.uk Finally, please feel free to join the UKAEE Transport Specialist Group on LinkedIn.

April/May 2015 | water energy & environment

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ESOS

Crunch time for compliance As the December deadline looms ever closer, are we heading towards a supply and demand crisis, asks Dave Cockshott, chief commercial officer at Inenco

T

hree quarters of businesses have not yet started their Energy Savings Opportunity Scheme (Esos) audits, and more than half are yet to appoint a lead assessor, a survey of business energy professionals

by Inenco has found.

A quick check of the number of lead assessors on the approved registers also found that fewer than 500 assessors are available to offer support to those 10,000 businesses caught up in the scheme.

It doesn’t take a genius to work out that a ratio of 20 businesses to every one lead assessor might lead

“

The most important message to stress is that Esos compliance will almost certainly take longer than one might think

38 April/May 2015 | water energy & environment

to supply and demand 28% were at data compilation issues as the December stage. Audits were under way deadline looms ever closer. for 17% of businesses, but only So why aren’t businesses 5% had completed them. acting on Esos? Is it a lack of We also asked businesses interest in identifying what they felt was the energy efficiency? biggest challenge.

Or faced with Unsurprisingly, a challenging given the everworkload, are increasing businesses burden of business had aiming for a placed on not started any ‘sprint for sign energy off ’, hoping to professionals, work towards get the audits more than the scheme done and dusted half cited time just in time for the and resource as December deadline? the biggest barrier.

In the survey, 37% admitted A further 27% admitted they hadn’t yet started any that identifying and collating work towards the scheme. the data for Esos was causing

37%

on someone with a limited them a headache, and 10% appreciation of the challenges were struggling to identify the facing that business and sites that would need to be an appreciation of how audited under the Esos rules.

Esos affects it. It could also The most important limit the quality of message to stress recommendations is that Esos and support that compliance businesses will almost receive. certainly Although take longer of business were businesses than one unlikely to act on may be lacking might think. the time and Despite the the findings of the resource to lack of progress Esos report dedicate to Esos, identified in the some businesses that survey, 76% were have not yet engaged in confident that they would Esos may view it as simply meet the December deadline. another regulatory report that First, businesses need to adds to an already overflowing identify and compile data on workload: compliance is energy consumption in order simply a tick in the box to to determine which sites to avoid fines. The Esos report audit. This can be a timemight end up sat on a shelf intensive task, particularly for gathering dust. Some 36% those areas of the business of businesses surveyed where data has not been felt they are either unsure collected or audited previously. or unlikely to act on its The audit process itself recommendations. typically takes about two to However, that report is three months to complete, but incredibly valuable. The lack a lead assessor needs to be of progress and limited lead engaged before audits begin, assessor availability all adds even if a business is hoping up to the biggest concern I to conduct them internally. have – that businesses may That lead assessor not only miss out on the opportunity needs to sign off the proposed that Esos presents to reduce sample sites, but also agree cost and consumption. on the ‘competency’ of the The recommendations nominated auditor. A sprint and opportunities identified for sign off might not be as in an Esos report can take a simple as previously thought. business a long way towards The threat of limited an energy reduction plan. numbers of lead assessors The Carbon Trust estimates in the market goes beyond a that every company will warning of bottlenecks leading identify savings of at least up to the deadline.

15% – for many businesses, It also has cost implications – that figure will be even higher. in any market, costs can creep Acting upon the report will up when demand outstrips more than recover the cost of supply. But more importantly, compliance – but it should also it could mean businesses do be used as the first not receive the best support to step towards an integrated meet their individual needs. energy strategy, where One of the most important procurement, managefactors when it comes to term plan to reduce selecting a lead assessor is and manage costs. finding someone with proven To me, the message is clear: experience and knowledge businesses simply can’t afford of a business’s sector and to delay any longer. we&e type of organisation. Limited inenco.com choice might mean relying

36%

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The power behind energy efficiency As one of the UK’s largest energy data management providers, IMServ can assist your business to monitor, interpret and proactively manage its energy requirements.

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ESOS updatE

Assessment and advice online Business Juice has set up a dedicated website offering a business surveying service as well as information about the Energy Savings Opportunity Scheme scheme itself

E

nergy conultant Business Juice has launched a new service for those businesses required to carry out assessments for the government’s new Energy Savings Opportunity Scheme (Esos).

Business Juice’s Business Surveyor service enables qualifying companies to arrange their Esos surveys quickly and easily in order to comply with the new legislation, for which there is a compliance deadline of 5 December 2015.

Business Juice is supporting the launch of this service with a dedicated new website, www.businesssurveyor. co.uk, which will enable companies to arrange Esos audits and surveys across the UK for single or multiple sites. Business Juice’s Business Surveyor team can arrange surveys nationwide, through their network of qualified surveyors.

process as efficient and professional as possible.”

“

For qualifying companies, Esos audits are not optional.

However, the information in the survey could be very valuable in identifying areas for energy efficiency improvements

Essential information The Business Surveyor website will also include essential information about the scheme, as many companies remain unclear as to the requirements.

Key issues covered will include an explanation of what sorts of companies are obliged to participate in the scheme and what their commitments are, as well as what to expect in a site visit and what their obligations are with regard to any findings from the assessment.

Business Juice cEO James constant explains: “Our new Business Surveyor service is a

40 April/May 2015 | water energy & environment

No obligation There is actually no obligation to carry out any work or improvements, regardless of the findings in the survey.

However, Business Juice says that this should be seen as an opportunity for companies to reduce their costs. constant continues: “For qualifying companies, Esos natural extension to our core audits are not optional. service of gas and electricity However, the information brokering for companies. in the survey could be very Indeed, it was through valuable in identifying speaking to our current clients areas for energy efficiency that we originally became improvements.” aware of the confusion “Energy is one of the that many companies had greatest costs a company regarding the Esos scheme. can face so any savings in Many had not even realised both usage and cost that it would apply to should be assessed them, while others and considered were unsure how carefully. to go about “In 2014, arranging our average audits and client saved assessments Average energy 17.5% on or confused energy, which about how to saving made by can make a select a suitable clients in 2014 big contribution surveyor. to the bottom “Our new line and free up website first and funds for energy efficiency foremost puts all the facts in improvements. the public domain in order “At Business Juice, we to help companies to work work with the whole market out their commitments in of energy suppliers so advance of the impending that we can tailor contract deadline of 5 December.” options to a business’s “Then our Esos assessment individual needs, enabling service enables them to them to access cheaper rates arrange the necessary audits with minimum hassle.” with our professional team.

In 2014, Business Juice Our national presence means procured more than 500GWh that even companies with for clients, delivering multiple sites can arrange savings of more than their Esos audit quickly and £8.1m in doing so. we&e simply with a single point of businessjuice.co.uk contact, making the whole

17.5%

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HVAC

ColdAir of opportunity Evaporative coolers have become the cooling system of choice, due to both financial and environmental benefits, says AmbiRad’s divisional manager Nick Winton

D

on’t wait for the warm weather to arrive before installing an air cooling system. You need to ensure your industrial or commercial premises will stand the heat.

New modern buildings are being built in more sustainable ways, with environmentally friendly materials and processes helping to reduce the carbon footprint and minimise reliance on heating and cooling systems. But with existing and ageing buildings this is not the case, and owners all over the UK are looking for better value ways to run and maintain their premises – whether through lower energy prices, cheaper servicing or more efficient systems.

During the summer months, it is crucial that internal air quality is improved in buildings for the benefit of staff, customers or to preserve the quality of products inside.

To achieve this, it is necessary to have a large number of air changes – ideally with clean, filtered and cooled air.

With shrinking budgets and the effects on productivity to consider, installation and running costs can also play a major role in the specification of an air cooling system.

Evaporative cooling systems provide a versatile, practical and low-cost solution in factories, warehouses, workshops, sports facilities and more.

Ideal for applications in large buildings where using alternative methods would prove logistically difficult, evaporative coolers are cost-effective and can

reduce the internal air temperature by just a few degrees when required.

An effective evaporative cooling system can in some cases use only 20% of the energy used by alternative systems. And thanks to a quick and easy installation that needs no structural alterations, it is no surprise that evaporative coolers are fast becoming the product of choice for buildings where cost and environmental impact are of utmost importance.

The natural solution Used in homes all over the world for many years, a natural and cost-effective way to cool a room is to simply hang a wet sheet in front of a window. As air passes through the wet sheet it is cooled and in turn lowers the room’s internal temperature. This simple premise plays a crucial role in the functionality of an effective evaporative cooling system such as ColdAIR. ColdAIR makes use of the free latent energy in the atmosphere. Cooling

42 April/May 2015 | water energy & environment

“

ColdAIR makes use of the free latent energy in the atmosphere and does not rely on refrigerant gasses (CFCs) in its operation

the internal environment by drawing air through continually wetted pads that surround the ColdAIR unit, the system integrates this ‘natural air cooling’ technique and does not rely on refrigerant gasses (CFCs) in its operation. The evaporation of moisture into the air reduces the temperature – it also filters the air through a damp pad to remove airborne contaminants.

Keep cool and carry on Installation is simple too, and low cost, allowing evaporative cooling to be installed in building types that previously could not consider cooling due to the financial outlay.

Installation will cause minimal disruption to the building’s day to day operations.

Once the evaporative cooling system has been installed, the behaviour of internal occupants will have little impact on the system or its performance. The room in which the evaporative cooler is located should be as well ventilated as possible to ensure it functions efficiently.

The design of the evaporative system may incorporate extract fans to remove the complete volume of input air, or alternatively the removal of the air may rely on windows and doors being kept permanently open while in operation.

As air is not recirculated, the room and its occupants will enjoy the benefits of a constant supply of fresh air.

Now virtually any building can benefit from a cooling system. we&e ambirad.co.uk

theenergyst.com

Bring cooling in from the cold The University of Birmingham says global demand for ‘cold’ should be taken seriously and has launched a new policy commission looking at how to do cold smarter

T

he University of Birmingham has announced the launch of a new policy commission, entitled Doing Cold Smarter. It will investigate how the growing demand for ‘cold’ and cooling, which is required to address global challenges of hunger, disease and population growth, can be met without causing environmental ruin.

The provision of cold is a vital foundation of modern society – without it medicine, data and the supply and preservation of food would break down. Cooling is also energy intensive; estimates suggest that it consumes up to 14% of Britain’s electricity and £5.2bn each year is spent on energy for cold across the grid and transport. These figures will be significantly higher in warmer countries, while in rapidly developing nations such as China and India investment in cooling is starting to boom.

Yet compared with electricity, transport and heat, cold and cooling has received little attention in the international energy debate. However, the energy and environmental costs associated with the need to provide cold have become evident and are predicted to increase dramatically in the years to come. The commission will research new ways of providing cold in a sustainable way, specifically through a system level approach, as well as exploring the economic opportunities this new clean cold industry could present.

This policy commission will also investigate ways

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the UK could become a global leader in the development of new cold energy systems, the technical, economic, Amount spent on research and skills issues around ‘cold’ cooling in the UK and the potential each year economic and environmental impacts.

The commission leaders will invite international experts from academia, nongovernmental organisations and industry to attend workshops in the UK and in Asia to discuss how to do cold smarter both in emerging markets and in the UK, which could include the following: • greater recycling of waste energy, including waste cold to supply cooling; • using liquid air and other cryogens as energy vectors to store and deliver cold and power; • developing more efficient technologies, materials and practices around cold and cooling; and It is abundantly • establishing a skills base that can meet the future demand clear the UK for new technologies and manufacturing. needs a joined Lord Teverson, Liberal up approach on Democrat peer and energy and climate change heat energy… it is spokesperson, who will chair this commission, said: “I have essential to develop taken on the role as chair of an overarching this exciting policy commission because cold is a vital part of understanding of energy policy for the future, but that has been little explored. the cold end of the “The demand for cooling thermal spectrum is rising globally, and if we fill this urgent need with and where the existing technologies it would opportunities lie have a detrimental effect, not

£5.2bn

“

only on the environment, but also for our energy supply.

“Bringing together experts, policymakers and innovators around one table will enable us to work out how to tackle these issues sustainably and in the process provide muchneeded manufacturing and engineering jobs for the UK.” Toby Peters, visiting professor of cold and power at the University of Birmingham, who is leading the commission, said: “Cold is vital to the way we live our lives today and to address the challenges of tomorrow. But it is all too often overlooked. This commission will address that myopia and will focus attention on how we can meet problems such as feeding growing populations and distributing medicine, without causing environmental or societal damage.”

Professor Martin Freer, director of the Birmingham Energy Institute, said: “Through policy commissions such as this, the Birmingham Energy Institute is delivering clear, and integrated, priorities and guidance on technology, policy and barriers to innovation. It is abundantly clear the UK needs a joined up approach on heat energy, the management of which is an even greater challenge than electrical power. As such it is essential to develop an overarching understanding of the cold end of the thermal spectrum and where the opportunities lie for a proper integrated energy system which properly includes demand for cooling and cold technologies.” we&e birmingham.ac.uk/energy

April/May 2015 | water energy & environment

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HVAC Gibbons increases the efficiency of AHU plant The Lilly building, Basingstoke, home to a global pharmaceutical company, comprises a large office space designed around a fullheight central atrium and was originally constructed to a high specification in 1994.

When the client, a leading fan manufacturer, wanted to increase the energy efficiency of the building’s air handling unit (AHU) plant, it selected Gibbons Engineering Group to help them achieve this, writes Gibbons’ business manager – HVAC services and refurbishment Andrew Knight (right).

Following site surveys and energy audits, which proved the potential for reducing electricity consumption, Gibbons was awarded a package of works to complete on site. The 43,000ft² plant contained AHUs housing 16 fans, which ranged between 22kW and 27kW. The project involved the manufacture and installation of special enclosures, mounted adjacent to each AHU, which are fed and

cabled to new IP65 ABB steel isolators. The mains power supply coming from the line contactor to the new termination box was replaced and a new multicore cable run from each unit to the motor control centre (MCC) panel for use by the site building management system (BMS) engineers.

Extensive upgrade of other plant components also took place, with various

Sabien M2G gains US validation Following field trials, the US Department of Energy (DoE) has confirmed that Sabien’s M2G boiler load optimisers deliver significant energy savings – up to 14% in these trials – when retrofitted to hot water boilers.

Sabien M2Gs, distributed in the US by Greffen Systems, were used in the DoE’s ‘Building America Case Study’, which installed and monitored ‘advanced load monitoring’ (ALM) aftermarket controllers in Chicago.

All of the boiler systems were also fitted with weather compensation controls. The M2Gs were shown to operate in harmony with these to increase the energy savings already being achieved through weather compensation.

Greffen Systems CEO Frank Salensky said: “The Department of Energy’s validation means government affirmation of a key tool for saving money. For those chief sustainability officers and energy managers of industrial and commercial buildings who are seeking the next tier of proven solutions, the M2G is an exciting tool.” sabien-tech.co.uk

44 April/May 2015 | water energy & environment

trades cooperating to ensure each unit was completed to programme. The project was undertaken outside of regular hours in order to allow the client to operate as normal during their working week. Work commenced once the plant shut down each Friday night and engineers had to ensure the AHUs were running by the Sunday evening. As each AHU was completed, the variable-speed drives (VSDs) were programmed and set to work.

The building is fitted with a complex BMS that provides an automatic signal to each drive, which has enabled substantial energy savings because during periods of lower building occupancy the VSDs run the fan speed down. It is worth noting that a reduction in fan speed of just 20% results in a 50% energy saving.

By nature of this type of upgrade, the number of moving components within the fans and VAV (variable air volume) system is significantly reduced, making them virtually maintenance free. gibbonsgroup.co.uk

Energy centre is the talk of the toon A new community energy centre is to provide lower carbon heating and hot water to a community of 1,800 homes being developed in the Scotswood area of Newcastle upon Tyne by energy company E.ON and the New Tyne West Development Company (NTWDC).

The new-build community will be supplied with a more energy efficient energy supply through a district heating Duncan Bowman, NTWDC, network. The energy centre Newcastle City Councillor Ged and pipeline network provides Bell and E.On’s Steve Hunt a constant supply of heat and hot water to homes, meaning there is no need for individual gas boilers. This will reduce carbon emissions by up to 35% and deliver energy cost savings for residents.

Jeremy Bungey, head of community energy at E.ON, said: “The beauty of district heating schemes like this is that it builds energy efficiency into the very foundations of new homes, making Scotswood a prime example of an energy efficient community.”

Among the equipment at the Scotswood Energy Centre is a bespoke pressurisation set from the GaardPress SpillPress range designed and made by Smedegaard Pumps. Also at the centre are two InLine energy efficient inverter driven pumps from the ECOFlexx range at Smedegaard Pumps.

The energy centre will be capable of providing hot water and heating to all 1,800 homes on the 66ha site. In addition, it will ensure all houses reach level 4 of the government’s Code for Sustainable Homes. smedegaard.co.uk

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U K D a i k i n d i s t r i b u t o r f o r o v e r 34 y e a r s

N O BO DY KN OWS DAI KI N B E T T E R

HVAC Fläkt Woods hits right notes as college expands premises and stays cool without replacing plant

The Royal Northern College of Music recently expanded its concert hall as part of a refurbishment. The extra capacity demanded more heating and cooling. But replacing the existing HVAC plant was not an option.

Fläkt Woods’ eQ air handling units and ReCooler heat pumps hit all the right notes, according to the mechanical contractor for the project.

The refurbishment project at the Manchester venue took place between January and November 2014, with the concert hall’s capacity increasing to 750. As a result of the increase in capacity, there was a requirement for supplementary heating and cooling.

Instead of replacing the main boiler or chiller plant, Fläkt Woods’ ReCooler HP units were specified to provide the required heating and cooling, in conjunction with the air handling system.

The mechanical consultant for the refurbishment was Elaine Bissell of Booth King Partnerhip. Commenting on the project and the system, she said: “The ReCooler HP unit has proved to be a great choice and ideal for this type of refurbishment project, as not only are the units highly efficient, but they also offer an incredibly neat and tidy install.” The ReCooler HP design removes the need for an additional chiller, condenser or boiler, which consequently eliminates the requirement for any interconnecting pipework. flaktwoods.co.uk

John Deere commits to carbon reduction and reduces its consumption by 34% John Deere has teamed up with Vickers Energy Group to reduce oil consumption at its Nottingham site by £8,625, following its commitment to a strategy to tackle its carbon emissions.

Vickers Energy installed an advanced energy management system to control two Dravo air handling units, which resulted in an energy reduction of 34% on John Deere’s previous consumption in its first year. The system uses selflearning technology to regulate and monitor temperature throughout the buildings, meaning the units now work to their full efficiency, minimising wastage.

John Curzon, facilities manager at John Deere, said: “Vickers delivered above and beyond our expectations, originally guaranteeing a 20% reduction in our oil consumptions with a return on investment in 11 months. In fact, within our first 12 months of installation, we reduced our oil consumption by an additional 14% and our return on investment was reduced to just six months. Furthermore, solely from the installation, we’ve reduced our carbon emissions by 379 tonnes.” vickers-energy.co.uk

46 April/May 2015 | water energy & environment

Energy-saving ventilation for Marriott Hotels kitchen energy management expert Quintex has partnered Marriott Hotels in the UK to help it achieve substantial energy savings with its Cheetah demand-controlled ventilation system. Following a successful trial, the Cheetah system has been installed at all 50 of the high-end hotels in the Marriott UK estate, where it is expected to achieve annual savings of 313,605kWh and 1646 tonnes of carbon, with a payback of 1.73 years.

Cheetah saves valuable energy within a commercial kitchen environment. It uses sensor technology to detect cooking activity levels and reduce ventilation fan speeds so that extract rates are matched to cooking demands, optimising energy use. Hotel operators currently reaping the benefits of the energy-saving solution include: Claridge’s, Radisson Blu Edwardian, Hilton and the Four Seasons.

John Conlon, director of facilities and engineering Europe, Marriott Hotels International, commented: “We conducted an initial trial of the Cheetah system at one of our sites with excellent results achieved.

We’re delighted to be rolling out the technology across the UK, which will have a huge impact on our energy initiative programme.” quintex.co.uk

BMS health check could lower costs BG Energy Solutions has launched a new building management system energy health check service, designed to help businesses make savings of up to 24% on their HVAC running costs. The auditing service has been designed to help business owners and maintenance teams gain expert advice on an area of building management, which is often misunderstood. The technical nature of BMS management means it is tricky for business owners to understand how they can ensure their systems are gaining optimal performance.

The service is designed to provide a detailed analysis of a company’s controls strategy, report on plant condition and give cost recommendations (including payback calculations). The health check is guaranteed to identify ‘no- and low-cost’ savings in excess of the cost of the service, often saving up to 24% of the HVAC running costs. BMS Energy Health Check Service charges start at just £895 plus VAT. bgenergysolutions.co.uk

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When investing in a new ventilation unit with heat recovery you could – and should – go for the best-in-class choice. Clean air with optimum efficiency and extremely low noise is only the beginning. That is why we have developed our new eCO PREMIUM™. Learn more at flaktwoods.co.uk >90% Wet/ 85% Dry

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Drives & MoTors

Liquid-cooled savings Vacon UK has launched a range of space-saving, high power density AC drives

T

he Vacon NXP drives offer 25% lifecycle cost savings compared with air cooled drives, while having a smaller footprint and generating less noise.

These high performance drives with high cooling capabilities are a safe and reliable solution for demanding applications, particularly where space is an issue. They have been successfully used in a variety of heavy industries with tough operating conditions such as marine and offshore, pulp and paper, renewable energy, oil and gas, water and wastewater and mining steel works.

Vacon NXP drives eliminate the need for large and noisy air conditioning systems. Their liquid-cooled design allows heat to be readily transferred to a location where it can be dissipated conveniently.

The liquid cooled drives

dissipate only 0.1 to 0.15% of their heat losses to air, helping customers save energy and money on initial installation and operational costs. And, as an added benefit, they are also up to 12 decibels less noisy than fan-based drives.

The compact size and smart modular design of the NXP drives also delivers a variety of other benefits. In addition to saving floor space and installation costs, their design enables easier installation, connectivity and maintenance.

Although 25% smaller in volume than similarly rated products available on the market, Vacon’s NXP liquid cooled units are claimed to deliver the same, if not better, performance.

A range of ready-touse software applications is available so customers can tailor the drive’s performance to the

application’s specific needs.

The standard Vacon NXP liquid-cooled enclosed drives can be used with AC motors from 800-1550kW. However, by using Vacon’s

patented DriveSync control concept, four drives can be operated in parallel, offering an outstanding power range up to 5.3MW. we&e vacon.co.uk

Medium voltage VSDs give twice the rated power

W

EG has more than doubled the maximum power of its air-cooled MVW01 medium voltage variable speed drives – from 6.5MW to 16MW for

voltages from 2.3kV to 4.16kV – to meet the needs of medium voltage three-phase induction and synchronous motors across a broader power range.

The overall product line now

48 April/May 2015 | water energy & environment

covers the voltage range from 2.3kV to 6.9kV and the rated power range from 400kW to 16MW; a water-cooled version is also available, offering up to 40% higher rated power than the air-cooled one. With efficiency levels of more than 99%, the MVW01 means that customers can increase energy efficiencies in their application, reducing their environmental footprint and making associated cost savings.

The drive is suitable for a variety of applications including pumps, fans, mills and agitators in the oil and gas, mining, minerals and metals, chemical,

paper, plastics and rubber, and water and wastewater sectors.

The drive has exceptionally good dynamic characteristics with the multi-pulse diode configuration of the input rectifier offering a power factor over 97%, which translates into lower demand for incoming current and thus less costs.

Maintenance is simplified by plug-in inverter power modules (one per phase), while the inverter topology with multi-level technology offers a relatively low number of power components, increasing efficiency and reliability. weg.net/uk

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ENERGY MANAGEMENT

Accounting for the weather Vilnis Vesma has been rummaging in the museum of energy antiquities

W

hen we are trying to manage the energy used in heating buildings, we obviously need to take the weather into account in all the calculations we do. This will be true whether we are trying to compare the performance of buildings in different regions (or against yardsticks), to check that consumption in a given week was reasonable, or to remove the effect of weather when evaluating energy-saving projects.

Ideally we need a single number which would tell us how cold a particular week or month was, relative to other weeks or months in the same region or elsewhere. History, interestingly, has something to teach us about how to do this.

I’m indebted to Dr Peter Harris for unearthing the curiosity shown in Figure 1, published in the Journal of the Institute of Heating and Ventilating Engineers in 1936. It is a design for a meter whose purpose was to summarise how cold the weather had been over a given period (a month, say).

This is how it works: a resistance thermometer (a) is mounted outdoors and connected via a Wheatstone bridge (b) to a moving coil galvanometer (c)whose pointer (d) moves horizontally across a scale (e), marked from 60°F on the left to -20°F on the right. It thereby indicates the outside air temperature.

Above the pointer is a tapered chopper bar (f ), moved up

“

Variation in temperature above the base has no effect. That is one reason why average outside air temperature cannot be used as an indicator of fuel demand

50 April/May 2015 | water energy & environment

Figure 1: design for a meter whose purpose was to summarise how cold the weather had been over a given period and down by a light spring (g) driven by a rotating cam (h). Because the chopper bar is tapered, its vertical travel is constrained to an increasing extent as the pointer moves leftward indicating higher temperatures. Conversely, its vertical travel will be greater the lower the temperature, as the pointer moves to the right. The intermittent vertical travel of the chopper bar is transmitted via a pawl (i) and ratchet-wheel (j) to a cyclometer counter (k) which shows the total vertical travel.

The counter will advance more rapidly when it is colder and more slowly when it is warmer outside, and it is

so arranged that when the temperature exceeds 60°F there will be no vertical play and the counter will not advance at all.

60°F (15.5°C) was regarded as the outside air temperature above which a typical building would not need heating.

Taking a somewhat simplified and idealised view, Figure 2 shows a hypothetical week’s hourly air temperatures, and heat would only be needed during the red-shaded hours when it is below the base temperature outside.

The depth of the red bars corresponds to the vertical travel of the meter’s chopper bar; today, the same is done

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Figure 2: a hypothetical week’s hourly air temperatures heating could be turned on it is in units of degrees on area in a way which mimics in software, measuring the in government buildings. the vertical and days on the the expected change in temperature Lastly for now, Figure 3 horizontal. Hence the area of fuel consumption. But difference shows how a real building’s the shaded portion has units note, importantly, at equal weekly fuel consumption of degree-days (analogous to that variation in intervals relates to weekly degreeman-hours) and that is where temperature above and day values, and this implied the familiar term ‘degree days’ the base has no compiling The base for ability to model how the comes from. And yes: the effect. That is a running calculating degree heating system responds to base temperature of 15.5°C one reason why total. The the weather has important that we commonly use for average outside reason day figures has no consequences which I will calculating degree-day figures air temperature for doing scientific basis explore in future articles. we&e today has no more scientific cannot be used this will Vilnis Vesma (Vilnis@vesma. basis than that it was the as an indicator shortly become com, 01531 821350) is a former round number in Fahrenheit of fuel demand. apparent. energy manager and a specialist used a hundred years ago as If you look at the axes of Now a given building’s in the analysis of energy data the temperature at which the Figure 2 you will see that demand for heat will be proportional to the spread between its base temperature and the prevailing outside air temperature, if it has a base temperature of 15.5°C and needs 50kW of heating when it is 14.0°C outside, it would need 100 kW when it is 12.5°C outside because the temperature ‘deficit’ has doubled from 1.5 to 3.0°C. Because the thermal power requirement (kilowatts) is proportional to the temperature deficit at any given moment, the area of the red-shaded portion of Figure 2 is proportional to the thermal energy requirement (kilowatt-hours) over the duration of the chart.

Anything which increases the area – longer durations at the same temperature below base, lower temperatures, or a longer overall period in days – increases the shaded Figure 3: how a real building’s weekly fuel consumption relates to weekly degree-day values

60°F

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April/May 2015 | water energy & environment

51

COMPRESSED AIR

Optimising energy usage Festo product manager Steve Sands explains how to reduce energy costs in compressed air systems by up to 60%

T

o survive in a tough, competitive environment, many manufacturers are searching for ways to achieve their energy efficiency and sustainability targets and improve the efficiency of machinery in a bid to cut their production spend. Compressed air supply systems can be a source of wasted energy, especially if they have been in place for some years. This article reviews how energy costs can be reduced by as much as 60% through optimisation at both the production and system level.

What are the costs of compressed air generation?

Compressed air costs (normally expressed in pence (p)/Nm³)* can be determined using the sum of fixed and variable costs and using the annual delivery output of the compressor station (Figure 1). Annual fixed costs include the depreciation of the investment made, interest rate and space utilisation costs, whereas variable costs are made up of energy costs over the full-load and no-load periods of the compressor’s use, costs of consumables such as oil, coolant per year and maintenance costs.

By far, energy accounts for the largest part of the

Fixed costs

costs, at approximately 75%.

In order to generate 1Nm³ of compressed air, modern compressor stations require between 100 and 120Wh/ Nm³. Compressed air costs can be immediately reduced by up to 30% through using a central waste heat recovery system (WHR) – the savings are based on the heating costs saved. For example, using a WHR with warm water, up to 72% of the compressor output can be used as heat or, in the case of air cooling only, the figure can be as much as 90%.

In practice, the costs of compressed air per Nm³ can be determined accurately by measuring the electricity requirement and the actual delivery rate. However, this rate varies depending on the intake conditions and should therefore be measured at the same time as the energy consumption.

The average cost for compressed air estimated at between 1.2 to 2.2p/Nm³. The average price of compressed air for a system pressure of 6bar (rel) is 1.5p/Nm³, which is based on the following assumptions: generation costs at 120Wh/Nm³, which is for 8bar (rel) at the compressor, electricity costs of 9.5p/kWh and the ratio of energy costs to additional costs is 3:1.

To get a complete picture

Variable costs

Compressor air intake (annual) ISO 1217 In acccordance to ISO 1217: 20°C, 1000mbar

Figure 1: calculating average compressed air costs

52 April/May 2015 | water energy & environment

Application Compressed air distribution Compressed air preparation Compressed air generation

Savings are possible throughout the entire compressed air system

“

As a rule of thumb, 20% of the detectable leakages in existing systems account for up to 80% of the avoidable costs

of consumption, possible leakage costs that may occur in non-productive operation should be considered and can be calculated in the same way. Leakage detection is, in fact, a fundamental factor in locating potential energy savings. As a rule of thumb, 20% of the detectable leakages in existing systems account for up to 80% of the avoidable costs. It is worth rectifying leakages quickly as every leakage fixed saves energy, and hence costs, straight away.

Where can potential energy savings be made?

As part of an integrated analysis, all four areas of a compressed air system must be considered: Immediate cost compressed reduction through air generation, air preparation, the use of heat compressed recovery air distribution and compressed air application. The average potential savings in the individual areas of the system vary greatly depending on the applicability of the energy-saving measure, how cost-effective it is and the savings produced.

There are numerous

30%

Average compressed air cost pence/Nm3

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measures for realising potential savings in compressed air systems; these have different effects depending on the particular part of the compressed air system.

First, performing a compressed air audit, ie a precise analysis of the existing system with a focus on energy efficiency at each stage, is recommended. As the wasted cost for air preparation is just 1%, we will concentrate on the other three areas.

In air generation, accurate energy analysis of the compressor station is necessary to create consumption profiles, gather information about the complete system with its power reserves and implement a leak detection and elimination process, as well as identify opportunities for savings and calculating the individual, plantspecific compressed air costs.

During air distribution, the most effective way of reducing costs is through leak detection analysis. Systematic checks and classification of leakages found according to volume can be made with all relevant data for leakage elimination, for example, necessary spare parts, estimated repair time, etc.

Knowing the compressed air consumption of the production hall – and hence of each machine – during the application stage is vital for optimally designing and configuring the compressed air supply and distribution at the system level. Furthermore, if the consumption of each individual system is known, then sizeable deviations from standard consumption act as early warning signs – of an existing or developing fault, for example.

In addition, the following information must be collected so that the energy efficiency measures can be precisely evaluated and determined: compressed air components (in particular air nozzles, sealing air) and pneumatic drives used, sizing of components and

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connecting components, and technical requirements on the application (force, speed etc).

Festo’s E2M energy efficiency module can be set up to monitor and regulate the compressed air supply

Who should take which energy efficiency measures?

There is no one-size-fits-all solution and measures must be defined individually for each plant. Which measures depends on factors such as the state of the compressed air system and the extent of use, etc. With machine energy efficiency analysis, these factors are directly dependent on the application. Moreover, the measures should always be reviewed in relation to the total consumption so that the economic efficiency of a particular optimisation measure can be determined.

Once a compressed air system has been optimised and brought up to date, it is important to safeguard its energy efficiency and therefore the cost-efficiency.

There are a few ways to do this. First, this can be done by arranging service and maintenance contracts.

For example, regular leakage detection, compressed air quality analysis, maintenance of individual machines.

There is also the option of transferring know-how from the service provider to the company by suitable trainings.

The third alternative is to install Festo’s MS6-E2M,

Generation 34%

Application 49%

Preparation 1% Distribution 16%

Cost-effectiveness of measures in the individual areas of the compressed air system

or E2M, energy efficiency module, which can be set up to monitor and regulate the compressed air supply in new and existing systems fully automatically.

When the E2M detects a standby status on the basis of predefined data, the compressed air supply is shut down automatically – similar to energy-saving start-stop systems in cars. During shutoff mode, the E2M checks the installation for leaks. If the module detects a pressure drop equal to a value predefined by the operator, it signals this to the machine’s control system via Profibus – in the event of leaks in the piping system being detected, maintenance can be carried out swiftly.

Condition monitoring is another important feature of the E2M, which gives plant operators access to energyand process-related data such as measured values for flow rate, air consumption and pressure at all times.

Plant operators can use this information as the basis for continuous intelligent energy monitoring of a machine.

With the E2M it is possible, for example, to determine whether the equipment is consuming more air now than a year ago, how much compressed air is needed for a production batch, whether the pressure is correctly adjusted or how high the pressure and flow rate were at the time of a machine breakdown.

An integral approach to optimising energy usage in a compressed air system has a range of benefits for the operator: reduction in energy costs and, as a result, in operating costs, reduction in costs for maintenance and servicing, increase in process security and reduction in unplanned production downtime and associated costs. we&e festo.co.uk *Nm3 is m3 for normal temperature and pressure

April/May 2015 | water energy & environment

53

IT & daTa cenTres

Challenge the assumptions Supermarkets and data centres ‘afraid of failure’, argues former M&S energy chief

M

ajor energy users such as data centres could achieve serious energy and cost savings and drive down UK peak demand if they were less fearful of failure, according to Marks & Spencer’s former energy management boss.

Mervyn Bowden, who now runs his own consultancy, Intuitive Energy Solutions, said major energy users could avoid high electricity charges resulting from demand in peak periods (so-called Triad charges, retrospectively set during three peak periods over winter by National Grid) if they really wanted to.

“I think from a user perspective, not enough effort has really gone into coming up with more innovative ways of mitigating Triad charges,” said Bowden.

He cites from his former area of expertise, refrigeration in supermarket chains, where kit could be put on defrost for longer during the Triad period.

They would save potentially 35-40% of their load during

that period “but they are very reticent about it because of the risk of failure of the equipment.

Bowden said data centres could potentially achieve greater savings – and not just during peak demand periods.

“There has been quite a significant awareness of measures in that space to increase [maximum] data centre temperatures for example, so there is not as much cooling going in. That results in significantly lower demand,” said Bowden.

But data centres have to deliver maximum reliability.

Is over-cooling not just a sensible precaution?

“They do… but the issue there is that every degree you can raise the temperature has a massive energy saving impact.

If you can raise the temperature of every data centre in the country from say, 19-20°C up to 25°C, with no great loss of response time on the kit, that would be a huge prize.”

Is that technically feasible, without increasing the risk of failure? Bowden thinks so. But theory must

“

Not enough effort has really gone into coming up with more innovative ways of mitigating Triad charges Mervyn Bowden

be proven, he said.

“There are lots of mixed messages in the space. But a lot of IT infrastructure now will happily operate at core India temperatures, 35-40°C. Yet here we are in the UK chilling data space to low 20s [degrees centigrade] if you’re lucky, on the premise that if they get too hot [they might fail]. Well, they might not,” said Bowden.

“Has anybody checked?”

It would be worth challenging assumptions and undertaking some rigorous research to prove the theory, said Bowden.

“It’s worth looking at a whole range of issues around data centres. What is in them?

Does it need to be in them?

Does it need to be temperature protected at all? You could well end up with a data room that is potentially half the size using potentially half the energy,” Bowden suggested.

“You’ll save in Triad periods and save in the other 22, 23 hours as well. It helps get the peak demand down even more.” we&e intuitiveenergysolutions.com

Growing opportunities in green data centres

M

anufacturer Danfoss sees much opportunity for its variable speed compressor in data centres. Not only are they energy intensive but there is an increasing need for them, which is expected to grow at an annual rate of more than 27%.

Already 2% of all electricity generated worldwide is used by data centres. The cost of power amounts to 20-60% of operating expenses over the life of a data centre, and a large

part of the costs is used to remove heat to keep data safe at the right temperature and humidity. However, Danfoss claims that efficient cooling solutions can cut energy

54 April/May 2015 | water energy & environment

consumption dramatically.

In Europe, for example, Danfoss is cooperating with a number of UK-based climate solutions providers. Together, they have delivered cooling units with Danfoss variable speed compressors for data centre applications, which have enabled the owners to typically save about 30% on energy use annually.

In the US, the IT infrastructure company Inertech is among the users of

Danfoss technology. Inertech is delivering innovative energy solutions for data centres, which use a free cooling cycle and make it possible to cut cooling energy consumption by up to 90% and water usage by up to 80%, depending on local conditions.

The cycle is assisted by both Danfoss variable speed compressors and drives to ensure the right temperature at any time and save energy. danfoss.com

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energy ManageMenT

Shop fridges get a turbo boost The humble fridge is being streamlined using F1 technology in Sainsbury’s stores

W

illiams Advanced Engineering, the division of Williams that commercialises Formula One-derived technology and knowhow, has collaborated with UK start-up Aerofoil Energy to develop a new aerodynamic device that can significantly reduce the energy consumed by refrigerators in supermarkets and convenience stores.

One such example is at Sainsbury’s. Its fridge systems are now being fitted with aerofoils – the same technology that helps to improve the performance of F1 cars on the road.

Aerofoils streamline the flow of air around an object – and help F1 cars to grip to the road. They are carefully designed and engineered profiles that control the direction of air flow. Aerofoil Energy and Williams are developing a new retrofittable aerofoil system that attaches onto each refrigerator shelf to keep more of the cool air inside the refrigerator cabinet.

This innovative technology will result in significant energy savings for supermarkets and convenience stores, with corresponding benefits for their carbon footprint. The technology will also make the shopping experience more pleasant for consumers.

Sainsbury’s head of refrigeration John Skelton said: “We’re proud to be giving our fridges a turbo boost with this fantastic aerodynamic technology. Aerofoils help the airflow around F1 cars and can

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improve their performance – and that’s exactly how they help the fridges in our stores, by keeping the cold air in. This F1-inspired innovation has already shown it can cut carbon produced by major refrigerators.”

Energy consumption makes up a significant percentage of a supermarket’s operational costs, with energy hungry refrigerators that keep the produce cool the largest consumer of power.

Aerofoil Energy is working closely with Williams to refine the aerofoil concept, using Williams’ proven expertise in aerodynamic design and testing from four decades of success in F1 racing. Williams’ Advanced Engineering division is using computational fluid dynamics to model and simulate new designs before testing them at the Williams factory in Oxfordshire.

Craig Wilson, managing director of Williams Advanced Engineering, added: “Williams Advanced Engineering’s mantra is to take the best of F1 technology and knowhow and work with a range of industries to help improve their products and services. Much of our work focuses on improving energy efficiency and the collaboration with Aerofoil Energy is a perfect example of how F1 innovations can have a tangible benefit to ordinary people and the environment. This technology has global potential and the savings in operational costs and emissions are extremely promising.” we&e

April/May 2015 | water energy & environment

55

Green ICT

The impact of supercomputing on wind turbine energy yield Automated software, combined with high-volume data processing power, is having a significant impact on the placement and success of renewable energy devices across the UK, says Professor Rick Hillum, ceo of High Performance computing (HPc) Wales

H

igh performance computing – the process of rapidly turning large volumes of structured and unstructured data into meaningful information – has become a key tool in the drive towards identifying the optimal location for renewable energy devices, and refining their design to improve productivity and reduce their impact on the surrounding environment.

Using geographical data sets from a local area, businesses can run thousands of simulations on a virtual model to predict how it will behave when subjected to the forces of nature.

As a provider of outsourced high-performance computing services, which include computational fluid dynamics (CFD) and Big Data solutions, we are seeing increasing numbers of research-based, consultancy SMEs using our services to provide valuable information and advice to the renewable energy sector.

Running simulations to model the flow of the wind, for example to assess the most effective height and position of a wind turbine, can have an enormous impact on the amount of energy it will generate.

Planetary Resources, based in Lampeter in south Wales, is an example of a small consultancy making use of HPC Wales’ large processing capability to do just that. Combining weather and geographical data sets from the local area with automated computational fluid dynamics

“

Businesses can run thousands of simulations on a virtual model to predict how it will behave when subjected to the forces of nature

56 April/May 2015 | water energy & environment

whatever the project size. software enables it to model Access to outsourced the flow of wind over, under, high-performance computing through and around a turbine. capabilities makes it feasible for Thousands of simulations are smaller consultancies to take run on each model on Wales’ on these projects, for a fraction distributed supercomputing of the upfront investment, network to provide accurate while still delivering the predictions on the potential same level of accuracy as energy yield each turbine would a larger organisation with generate based on where it is in house capability. placed and how it is positioned.

For Planetary Resources, the A small change in the run time for processing its work height of a turbine, or its exact was cut from 2.5 days in house location, can have an enormous to three hours on HPC Wales’ impact on the amount of system. This has meant it has energy it will generate and been able to complete how long it will last much bigger, before extensive more complex maintenance models, which is required. has enabled Analysis it to become conducted by Number of wind much more RenewableUK, turbines in the UK responsive to the wind customer needs. industry body, at the end of To ensure a indicated that 2013 positive return the total number on investment in of onshore wind renewable energy generation, turbines was 29,353 at the it is vital devices are designed end of 2013. This figure is now and installed with accuracy expected to have surpassed and efficiency in mind.

30,000. The turbines range The complex capabilities in size from micro turbines afforded through access to mounted on a roof to large greater numbers, speeds and turbines more than 470 feet tall. analysis of important data will With tighter planning continue to build and determine consent now required to the knowledge required to make build larger turbines, there important renewable energy has been an increase in the source decisions. The fact number of micro installations. smaller, and sometimes more When you are investing fivefocused, expert companies can and six-figure sums, even provide this data undoubtedly in smaller wind farms, it is means there will be more essential the turbine is placed competitive and challenging in the best possible location models on which to base to maximise the income it will and grow the sector. we&e generate. This requires a huge hpcwales.co.uk amount of processing power,

29,353

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District heating

Decentralisation the key for heat networks?

Municipalities and communities are driving heat network uptake in Europe. Can the UK follow the same path and how can costs be reduced? we&e visited heat network pipe manufacturer Thermaflex to find out

D

ecc states that it has “ambitious plans” for heat networks. But the industry wants more commitment if those plans are to become reality – and more support for communities trying to build them.

Decc’s heat map suggests about half of heat demand in England, or 8 million homes, is concentrated close enough to heat sources for heat networks to be worth investigating. The department recently allocated £3m to 55 councils in England and Wales towards setting them up.

The aim is to develop proposed networks to a stage where they might be financeable. Decc has mooted Green Investment Bank involvement should the larger schemes be deemed feasible and bankable (and where the Investor Confidence Project, see page 16, might help).

Such funding is

welcome, according to the district heating industry.

But proponents want a bigger commitment.

Flexenergy sales director Sandy Fairley worries that the Decc funding may end up wasted.

There is a risk that £3m “will produce nothing”, says Fairley, and end up simply an exercise in “ticking a box”.

“It will take a lot of money to take this forward.

We need to reduce energy waste and we need to look at government policy,” he told trade press in Waalwijk, Holland, visiting insulated plastic pipe manufacturer Thermaflex, with which Flexenergy works in the UK. Both firms would stand to benefit from any policy drive on heat networks. But so would the UK’s chances of hitting carbon targets at lowest overall cost, given about half of the UK’s energy use is attributable to heat.

Flexenergy director sandy Fairley worries that the Decc funding will ‘produce nothing’

58 April/May 2015 | water energy & environment

“

We see figures quoted of £1,000 per metre for networks.

I know what the material costs, I know what it costs to dig up the road and install it. It doesn’t add up to £1,000 a metre. So perception is something we need to try and challenge

According to Decc figures, there are about 2,000 networks delivering heat to some 210,000 dwellings and 1,700 commercial and public buildings across the UK. That represents somewhere around 2% of domestic, commercial and public heat demand.

In Holland, some 621,000 dwellings are connected.

Authorities are building out networks and scheme owners are increasingly replacing the heat sources with renewable generation, according to Thermaflex CEo and owner Gerrit-Jan Baars. With seven million households in the Netherlands, that equates to about 9% of dwellings connected to a heat network.

The difference in the Netherlands market is that many of the schemes are community or municipality owned, sometimes in conjunction with an energy company. Baars said that starting with smaller schemes and taking a decentralised approach is key to driving further adoption. one of the barriers to uptake is cost, both in installation and maintenance. But Thermaflex claims its insulated plastic pipe networks can make installation faster –and therefore cheaper and less disruptive – as well as increase system life. Whereas steel pipe systems can start to break down after a decade due to corrosion, Thermaflex’s are certified for 50 years, said Baars.

“The things that break down

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steel pipes (left) start to corrode after 10 years. Flexenergy’s thermaflex plastic pipework is guaranteed for 50 years

first are the connections. If we can make them live for 50-100 years, then maybe the whole system can last that long.”

But he said that the network is the critical element, because the source can be replaced. In Holland there is currently swathe of heat source replacement

being undertaken, with energy from waste sources being connected to formerly fossil fuelled schemes.

Flexatherm’s Fairley thinks that while upfront cost is a key barrier, some of those costs for heat networks may also be overcooked. “We see figures quoted of £1,000 per metre

for networks. I know what the material costs, I know what it costs to dig up the road and install it,” he says.

“It doesn’t add up to £1000 a metre. So perception is something we need to try and challenge.”

But Baars said the firm is increasingly speaking with more and more communities and municipalities which do understand the long-term benefits versus short-term cost

burden, and who wish to take control of their heating costs.

He thinks the shift towards a decentralised energy model will accelerate that process.

As local authorities such as Nottingham and Bristol step up plans to become fully licensed energy suppliers, and even energy network owneroperators, perhaps that kind of shift is already happening in pockets of the UK. we&e flexenergy.co.uk

Plastic fantastic Flexenergy acts as the UK partner for Thermaflex, looking after the design, supply and implementation of UK schemes that use Thermaflex pipe technology. The flexible plastic pipework can be fully prefabricated for use in heat networks. Because of that the company claims to have connected an entire street to a district heating scheme in a single day, including remediation works.

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April/May 2015 | water energy & environment

59

wateR management

Flushed with success Council chooses toilets that can cut bills by up to 60% as well as offering healthcare benefits

R

edbridge Council has installed new water-saving toilets as part of its work to reduce its carbon footprint.

A total of 45 water-saving units by Propelair, the UK designer and manufacturer of a 1.5 litre flush toilet, have been installed at Lynton House in Ilford.

Built in 1967, the 13-storey, 40m tower in Ilford High Road is one of London’s early tall buildings and now accommodates key council functions such as children services, human resources, finance services, highways and property services.

The toilets generate significant savings on water use in public and commercial buildings. There is the indirect benefit of reducing some energy use and therefore

reduced embodied carbon through less water use. Using a sealed lid when flushing, the system improves hygiene by cutting airborne germs.

On-site pilot trial monitoring of three Propelair toilets indicated annual water savings of 243 cubic metres – or £529, with a reduced carbon footprint of 91kg.

As 45 units are installed, the savings are anticipated

to be considerably more.

Propelair is experiencing interest from local authorities that are facing budgetary constraints and see water savings as a route to reducing overheads. Propelair can be retro-fitted to drainage systems, simply connecting pipes that are already in place.

Launched in 2013, Propelair is the result of five years’ research and independent testing at numerous prestigious technical facilities.

Its toilets use 84% less water than ordinary toilets, cutting water bills by up to 60% – they also reduce the spread of germs by 95%, bringing potential healthcare and productivity benefits.

Propelair CeO Garry Moore commented: “We have long said our highly innovative toilet would bring

major change to the UK facilities management sectors, particularly for those in charge of public sector property.

Within two years of our launch, that process is in train.

“The Lynton House project for Redbridge is our second major local government order and we’re especially proud that it’s our first complete building installation.”

Designed and manufactured in the UK using its patented displaced air technology (POWA), Propelair produces a powerful, high-performance flush using 1.5 litres of water compared with nine traitionally, and requires a fraction of the energy usually needed for water and waste processing, reducing carbon footprint by an average 80%. we&e propelair.com

Tapping into water savings and hygiene

B

ristan is continuing its new product development drive for the commercial sector with the addition of a new infrared timed flow tap range to its extensive tap offer.

The range of infrared timed flow electronic basin taps has been designed to offer a cost-effective, entry-level, non-touch option for all light commercial applications.

The taps use infrared technology to detect human presence and switch on the water flow for a set amount of time to eliminate unnecessary wastage. In this way, the taps offer significant scope for water saving and, in turn, cost efficiencies,

while also ensuring compliance with the Building Regulations and BReeAM. As another benefit, the nontouch mechanism alleviates the risk of cross-contamination, making the range suited to use in all commercial premises seeking to optimise hygiene levels and ensure duty of care to the public.

The taps are designed for a quick ‘plug and play’ install, without the need for any earthing, helping to reduce labour time and money. A ‘fail-safe’ mode for vandal resistance means the taps will not give a ‘continuous flow’ even in the event of the sensor being damaged.

The range is positioned as a

60 April/May 2015 | water energy & environment

complement to Bristan’s Pulse 8 tap range, which features non-capacitance technology to harness electrical pulses from the body for the optimum level of detection.

Bristan product manager Chris Tranter said: “Following a huge year of new commercial product development in 2014, our aim is to take it to the next level this year by honing our portfolio to ensure we can offer a ‘one-stop-shop’ for the commercial customer.

“With this in mind, our new infrared timed flow tap range has been designed to offer a stylish, versatile and cost-effective product option for all light commercial settings, such as offices, public

buildings, schools and leisure centres. It offers the perfect cost-effective alternative to our innovative Pulse 8 non-touch; enabling users to benefit from all the core functionalities at a more affordable cost.” specifybristan.com

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PRODUCTS Heatrae achieves international energy management standard Heatrae Sadia has bolstered its commitment to energy efficiency and sustainability after achieving the International Organisation for Standardization (ISO) 50001, which sets out a formal energy management system.

Certified companies must create and maintain a management system that demonstrates that they can measure and monitor their energy consumption and use action plans to actively improve energy efficiency.

The framework of requirements includes setting targets and using data to better understand and make decisions about energy use, creating a continual culture of improvement. As part of the process, Heatrae Sadia has appointed an energy team, led by a dedicated manager, which is tasked with monitoring and driving improvement throughout every part of the business.

By securing the standard, Heatrae Sadia has

moved a significant step closer to complying with the Energy Saving Opportunity Scheme (Esos), which will be mandatory from 5 December 2015.

The news means that Heatrae Sadia now holds four internationally recognised standards, having already achieved ISO9001 for quality management, ISO14001 for environmental impact and OHSAS 18001 for occupational health and safety.

Heatrae Sadia managing director Paul Rivett said: “This is a great achievement for our business and our customers too. We are

Assessing minimum pump energy requirements

From pumping water from a well to fuel injection in your car and even manufacturing medicines, pump systems are used everywhere. But all too often they are given more energy to function than they actually need. A new international standard aims to change all that, saving the planet – and our wallets – in the process.

ISO/ASME 14414 pump system energy assessment aims to reduce energy consumption by enabling organsations to effectively determine the minimal amount of energy that is required by various pump systems, thereby enabling facilities to improve energy efficiency, subsequently reducing consumption and the carbon footprint.

Developed in conjunction with the American Society of Mechanical Engineers (ASME), ISO/ASME 14414 sets the requirements for conducting and reporting the results of a pumping system assessment, allowing facilities to not only calculate their current energy consumption but identify ways to reduce energy and improve its efficiency.

By providing a common definition for an assessment, it also enables consistency across organisations and countries, ensuring contracting for assessment services is a whole lot easier. iso.org

62 April/May 2015 | water energy & environment

committed to designing and manufacturing products that are smarter and cleaner through the continuous development of our people and processes to help our customers feel warmer.”

The International Organization for Standardization is an independent, nongovernmental membership organisation and the world’s largest developer of voluntary international standards. About 7,000 companies worldwide have signed-up to ISO50001 since it was published in 2011 (see graph above). heatraesadia.com

Pioneering surface-tolerant repair technology Belzona 1212 is a new paste grade material that achieves a quick, durable repair even in oil-contaminated wet and cold areas, with effective adhesion to manually prepared substrates where grit blasting is not possible. The multipurpose repair system will be applied to metallic plates, both underwater and contaminated with oil.

Answering the industry requirement for a surface tolerance material with fast curing properties, this new paste grade product has been developed to be applied in situations where the surface cannot be fully cleaned or ideally profiled. Indeed, Belzona 1212 has built-in surface tolerant technology, enabling the material to bond tenaciously onto metallic substrates even when surface preparation is minimal or the substrate is heavily contaminated with oil or water.

Belzona research and development chemist Jason Horn said: “Over the years, we have had many conversations with engineers across a range of industries who have expressed the need for a quick curing repair system suitable for water, oil and fuel leaks. In response to this, our research and development team has developed an extremely versatile, easy-to-use system that can be applied in any industry.” belzona.com

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Product & Services Directory Contact Robert Gouge Tel 020 3771 1267 Mob 07557 109724

Coventry district heating fully operational The Coventry District Energy Scheme, operated by Cofely GDF SUEZ, is now fully operational and delivering low carbon heat to key public buildings across the city. As well as reducing CO2 emissions by an estimated 1,500 tonnes per annum, the scheme will now begin to reduce costs for Coventry City Council by providing heat for space heating and hot water.

It will be operated by Cofely under a 25-year concession agreement with the council and is the first of its kind in the UK, with Cofely taking the role of ‘heat shipper’. In this role Cofely buys heat from an existing energy from waste plant and transports hot water via a 6.6km network of underground pipes to consumers.

The low-carbon network has been delivered through a capital investment of £3m by Cofely with a further £2.3m from the government’s Homes and Communities Agency for installation of the infrastructure. The network is designed with the flexibility to allow the heat supply to be extended to residents, local businesses or other organisations in the future.

The current heat capacity is 9GWh, with potential for this to rise to 73GWh during the 25-year period. To help meet peak heat loads in an optimal way, the scheme also incorporates a 650,000 litre thermal storage vessel. The highly visible vessel will feature a carbon calculator display to show how much carbon dioxide the scheme is saving. cofely-gdfsuez.co.uk

Saves the water that others cannot reach Veolia Water Technologies has supplied a bespoke water recovery system to Heineken’s Hereford Cider Mill, which was looking to reduce its water consumption by 25% by 2020. As part of an environmental assessment, Heineken identified a potential saving from the water loss in the concentrate stream from its borehole water treatment reverse osmosis system. Approximately 30m3/h of water was not being used and, using Veolia’s RecoBLUE online calculator, it found that it could recover approximately 50% of the reverse osmosis losses, at a quality of better than 120µS/cm conductivity, which would be suitable for use as boiler make-up.

It was essential that the recycling process should not increase energy and chemical consumption, so Veolia provided a specially configured Sirion Mega Recovery RO Unit. The new system is reducing the Cider Mill’s water footprint by more than 130,000m3 per year. The resulting annual saving of more than £100,000 will repay the system’s capital cost in less than four years. reco.veoliawatertechnologies.co.uk

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65

Q&A

Andrew Richardson Utilitywise’s deputy CEO talks about time travel, mind reading and Scotland winning at rugby

W

ho would you least like to share a lift with and why?

I am going to have to take the fifth on that – but you know who you are!

You’re God for the day.

What’s the first thing you do?

Make Scotland invincible at rugby, then make a truly non-iron shirt. So you know, all the big stuff.

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

The Renaissance to see what Henry VIII was really like.

Who or what are you enjoying listening to? (music, radio etc).

Rudimental – after I was dragged to a concert by my son, I have started listening to them more often and am becoming a fan.

What unsolved mystery would you like the answers to?

Given my interest in the period it has to be what happened to the Princes

What would you take to a desert island and why? (excluding loved ones & practical things) My dog Murphy (a Rottweiler) because he is always happy to see me – or does that count as both a loved one and a practical thing? Not sure how good he would be catching wildlife, so I think it should be allowed.

What’s your favourite film (or book) and why?

Any of the books in the Flashman series by George MacDonald Fraser. They are great fun and really sharpen up your historical knowledge along the way.

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

That I can read minds – this would be a great talent.

What would your super power be and why?

Time travel. I would like to experience the grand historic events first hand.

It would be pretty handy at a pub quiz as well.

What would you do with a million pounds?

Try to rekindle my dreams of rugby stardom.

Unsolved mystery: what did happen to the Princes in the Tower?

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

Mind reading would be very helpful but as I would like to be international sportsman perhaps world class rugby skills would be more use.

in the Tower – I’d try and find that out when I timetravelled back there.

What’s your greatest extravagance?

Recently it was an engagement ring.

66 April/May 2015 | water energy & environment

“

I would like to experience the grand historic events first hand.

It would be pretty handy at a pub quiz as well

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

Keep going no matter what is in front of you. I am an avid reader of management books and this theme seems to come through as a common thread in these.

What irritates you the most in life?

Lateness. We are fast and nimble at Utilitywise, so you’d better turn up on time for a meeting with me.

What should the energy users be doing to help itself in the current climate?

For large businesses, if they haven’t got to grips with their plans to handle the Energy Savings Opportunity Scheme (Esos) yet then I would say make that a priority, as time in running out and not meeting the deadline could end in a fine. Businesses of all sizes should be looking at ways to better manage energy consumption to reduce the impact to the environment and from incurring charges being brought in to pay for the electricity market reforms.

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

By the time you read this I will have finished our interim result presentation. we&e utilitywise.com

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