Water, Energy & Environment by The Energyst

February/ March 2015 Issue 96 theenergyst.com

Efficient control of utilities and facilities

INSIDE THIS ISSUE INSIGHT Solar power on demand? Industry needs new technologies to store solar energy efficiently. One possible answer is latent heat storage solutions based on salt See page 22

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POLICY & LEGISLATION

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If you expect the energy user to think and act like a power station, you will come up with the wrong answer

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The next government has to forget about picking technology ‘winners’ and harness the power of British industry. Crucially, it must stop using the wrong set of numbers when it comes to energy efficiency See page 12

HVAC Airedale International has helped BAE Systems achieve significant savings on computer room air conditioning energy consumption See page 46

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Manchester Central can now identify exactly where and when wasted energy is occurring See page 24

WATER MANAGEMENT

Front Cover - See page 14 February/ March 2015 Issue 96 theenergyst.com

Efficient control of utilities and facilities

Xylem has reduced the pump station’s energy consumption at Heathrow Airport by 50% See page 64 News & Comment p4, Policy & Legislation p8, Gas & Electricity p16, M&T p24, Building Controls p30, Lighting p34, HVAC p42, CHP p52, Compressed Air p54, Water Management p62, Renewable Energy p65

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News & CommeNt

Fit for purpose?

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There needs to be an awareness of what the contract stipulates and how the energy services company will interact with an incumbent FM provider”

The European Commission has announced ambitious plans to create big changes to the European energy market, launching its Energy Union manifesto with integration, interconnection and energy efficiency at its heart. Part of this is its desire to reduce its reliance on foreign, and particularly Russian, imports of gas. EU countries import 53% of their energy at a cost of about €400bn, according to EU figures. Many countries in the East take all of their gas from Russia and it accounts for 23% of all EU gas supplies. Hearteningly, the vision has a major focus on getting the best from our energy generation and imports through the increased use of energy efficiency across every member state. It wishes to put demandside measures on an equal footing with the supply side. The Commission aims to review the Energy Efficiency and Energy Performance of Buildings Directives in a bid to create a framework that is fit for purpose in delivering energy efficiency in buildings. It seems that the increased focus through global events may at last see the potential of the “fifth fuel’”to be realised. Energy efficiency makes a lot of sense when implemented An increase in interest in energy performance contracting (EnPC) may well enable this to happen by getting around the skill gaps that occur in certain organisations of what technologies to choose and how to correctly commission them, allied with the potential to eliminate the upfront finance problem. However, there needs to be an awareness of what the contract stipulates and how the energy services company will interact with an incumbent FM provider. I have heard tales of the contract being invalid, and therefore the need to actually achieve the guaranteed savings due to this split. The FM had not made necessary adjustments that the EnPC designated. Unless the FM is the contract energy management provider, or they work closely in tandem, EnPCs will get a bad name just at the time when they could be used to facilitate a revolution in the roll-out of energy-efficient kit across the nation’s buildings.

Have you downloaded The Director’s Energy Report? It explains where company directors think the energy market is headed and what they are doing about it. Go to theenergyst.com/directors

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Fix EU ETS then create globally linked carbon market, say MPs Tackling carbon emissions on a global basis is the only way to avoid “squeezing the balloon” and simply shunting emissions into different regions. That’s the view of the Energy and Climate Change Committee, which has urged policy makers to ensure that bottom-up, subnational and national trading schemes that are taking root can be linked in to a global trading system in the future. It has also recommended urgent action to remove the surplus of permits hampering the effectiveness of the EU Emissions Trading Scheme. About 1,000 UK firms are covered by the EU ETS, which is the world’s oldest and largest carbon trading scheme. However, the EU ETS has had limited success in curbing emissions because there are too many allowances in circulation, a situation exacerbated since the steep drop in output triggered by the financial crash of 2008. This has meant carbon prices have remained low. It has also been argued that a regional solution that does not include the world’s biggest emitters is ultimately futile. China and the US are now building, or at least piloting, their own national emissions systems and many other national and subnational schemes have sprung up in recent years. The committee’s report outlines the need for trading systems to be designed so that they can be linked in the future, and stresses the need to ensure new trading schemes are compatible with the EU ETS. The EU’s environment committee has voted to implement the reserve mechanism by the end of 2018.

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Commission’s power play means easier funding for energy efficiency The European Commission has unveiled hugely ambitious plans to create sweeping changes across the European energy market, launching its Energy Union manifesto with integration, interconnection and energy efficiency at its heart. The commission is to pay special attention to increasing the energy efficiency of buildings and transport and help companies unlock financing to get projects over the line. The commission has long talked of Energy Union, but has now formalised those plans, that, if implemented, could radically alter the structure of the energy market. The package includes: • new legislation to redesign and overhaul the electricity market; • ensuring more transparency in gas contracts; • substantially developing regional cooperation as an important step towards an integrated market, with a stronger regulated framework, • new legislation to ensure the supply for electricity and gas • increased EU funding for energy efficiency or a new

renewables energy package; • focusing European research and innovation energy strategy; and • reporting annually on the “State of the Energy Union”. Many of the elements could take years, if not decades to implement, given disparate national policies and priorities. At a regional level, plans to redesign the wholesale and retail markets, overhaul integration and interconnection, create smart “super grids”, make gas supply more transparent and impose a pan-European regulator over national energy markets are hugely ambitious, even individually. However, the policy elements around energy efficiency should be less difficult to deliver. According to the commission, “it is necessary to fundamentally rethink energy efficiency and treat it as an energy source in its own right, representing the value of energy saved. As part of the market design review, the commission will ensure that energy efficiency and demand side response can compete on equal terms with generation capacity.” The commission has also promised to make it

“It is necessary to rethink energy efficiency and treat it as an energy source in its own right” easier for companies and organisations to access energy efficiency financing in order to overcome one of the single biggest hurdles in delivering energy savings. The commission will develop a “Smart Financing for Smart Buildings” initiative, facilitating access to existing financial instruments, and will outline a strategy to facilitate investment in heating and cooling. The commission also said it will review the Energy Efficiency and Energy Performance of Buildings Directives in a bid to create a framework that is fit for purpose in delivering energy efficiency in buildings. The document also states that the commission will draw up a district heating strategy, in a bid to unlock “huge efficiency gains”, and has indicated it sees energy from waste as a priority.

ESOS compliance: new Environment Agency

tome supersedes DECC guidance The Environment Agency has published a detailed guide to ESOS compliance, which supersedes previous DECC guidance. The Energy Saving Opportunities Scheme is the UK’s implementation of article 8 of the EU Energy Efficiency Directive. It basically means all large companies (more than 250 employees with

turnover in excess of €50m and an annual balance sheet in excess of €43m) have to undertake a mandatory energy audit every four years. There are various ways to comply with the scheme, which came into force last year. The 78-page document outlines routes to compliance and provides advice on how to go about it.

February/March 2015 | water energy & environment

News & commeNt

cmA puts wholesale energy market in the The Energy clear but there may still be overcharging Event to partner The Competition and Markets Authority has indicated that it is unlikely to recommend sweeping changes to the wholesale power and gas markets. Instead, the CMA appears set to focus on retail competition and whether large energy suppliers are abusing their market power and overcharging customers on standard variable tariffs. The CMA is also looking at the issue of overcharging within small businesses and has noted that small firms on rollover contracts are paying way over the odds for their energy. While the report details “current thinking” and not final findings, it appears to put the wholesale market largely in the clear. The report notes some issues

with liquidity, such as access to granular, non-standard products, but indicates that prices and practices appear to be largely transparent and that historical reforms have achieved some level of progress. The CMA did not express a view on whether vertical integration was a barrier to competition but its observations did not indicate strong concern. The authority also expressed broad support for policy interventions such as the

Capacity Market and the Contracts for Difference regime but it suggested that some elements of the policy and regulation might need to be rethought. Outside of EMR levers, another concern was around the lack of locational pricing of constraints or losses. If any move to implement location-based prices were recommended by the CMA, it could mean significant changes to the market, and would also mean different prices for customers in different areas. The CMA has called for evidence to support any such proposal. Responses to the CMA statement must be submitted by 18 March. See page 10 for full the report.

MEUC group

The Energy Event has joined forces with the Major Energy Users’ Council to support its Utility Markets Policy Group. The new group brings together customers, suppliers and other industry professionals to explore how the competitive industrial and commercial energy markets can be simplified and improved. It will also look at how a competitive water market can be best introduced from 2017. Commenting on the partnership with The Energy Event, Andrew Buckley, MEUC’s director general, said: “We welcome this long-term working partnership with The Energy Event which will enable us to canvass opinions from the entire industry.”

Decc looks at demand-side response potential the Department of energy & climate change has issued a research tender to try and work out how big a role demandside response (DsR) can play in the UK energy market. the department wants robust estimates of how much back-up power generation currently exists in the UK, DsR technology types, response times and costs. the contract for the work is split into two phases: an initial qualitative and quantitative research piece; and a second project exploring the future potential of DsR over the longer term, how it can reliably participate in the capacity market, technology costs, the variables that may come into play and their likely impact on price curves. the Decc will pay up to £40K for phase one and up

to £60K for phase two. Both pieces of work will feed into the development of the capacity market auctions and will shape how demand-side technologies can play a role in delivering security of supply. while the first capacity market auction took place before christmas, the department faced some criticism for the focusing on generation. Although about 1 Gw of DsR was pre-qualified for the auction, only 174mw (less than 1% of the total capacity secured in the socalled t-4 auction) worth of contracts was allocated to DsR at the clearing price of £19.40/ kw. most of the remaining DsR players dropped out at between £25/kw and £35/kw. the energy and climate change select committee, in particular chair tim Yeo, has

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repeatedly questioned the wisdom of overlooking the potential for demand-side response within the electricity market Reform (emR) policy mix, given that the first capacity auction has largely rewarded existing plant. meanwhile, the science & technology committee in the Lords has heard evidence that there is no reliable estimate

of the UK’s total back-up power generation. Back-up generation could play a key role in demand-side response, and while an estimate of 20Gw has been cited in evidence submitted to the resilience inquiry, that figure was seen as out of date and unreliable. the Decc though, has insisted that DsR remains firmly in its plans and the tender for robust research upon which to make provision is evidence that it is looking beyond generation to help deliver security of supply. the analysis of current and future provision of Demand side Response in Great Britain tender has closed and work must be complete within four months. It will feed into the review of the emR levers the Decc and its delivery bodies will undertake this summer.

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DECC runs first auction for its EDR pilot The UK government has run its first pilot auction to see if energy efficiency measures could bid into the capacity market, a major plank of EMR. The Department of Energy & Climate Change conducted the first auction of its Electricity Demand Reduction (EDR) pilot. The aim is to discover whether energy efficiency projects, such as lighting or pump replacement, could eventually bid into the UK’s capacity market, competing with generation, storage and demand-side response. The department has been criticised for putting capacity and generation ahead of a cohesive policy on energy efficiency and demand reduction. The smart meter rollout, designed to help households become more aware of energy use, may enable limited, low single-digit energy savings, possibly 3%, yet will cost upwards of £12bn. Net savings of about £4bn have been estimated, plus about £2bn in the non-domestic sector, but are by no means assured. But the EDR pilot auction, while small, should help discover which approach delivers the best value to bill payers. Another upside is that energy efficiency improvements are fixed, and therefore not only available at times of peak demand, but reduce demand full stop. Following the bid organisations have been awarded a total of £1.28m for capacity totalling 5,589kW. Energy and climate change secretary Ed Davey said: “We want to see if reducing demand on the electricity grid can be a cost-effective solution that will work alongside building new power stations – guaranteeing our energy security, cutting emissions and lowering energy bills.”

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UK firms with cHP generators could be paid to stop exporting power Firms operating combined heat and power plants could be paid to keep their power off the local grids at times of network stress, in much the same way as wind farms are paid “constraint payments” by National Grid. Some of the biggest names in engineering are collaborating to figure out how that might work, with a project that kicked off in January. Adding distributed generation to networks that were designed around centralised power generation causes problems for the distribution network operators. It means the distribution network operators (DNOs) have to increase

the resources needed to manage and reinforce the system. Ultimately, the consumer picks up the tab. Because the DNOs are regulated in a manner designed to allow a reasonable return at the lowest cost to bill payers, it is hard for them to throw money at the problem. So the regulator has created a programme where the DNOs in consortia with technology firms can bid for money to experiment with technologies that help solve these problems at a lower cost. As part of the deal, they have to share the learnings with all other local grid operators. One of the projects that has been awarded funding that

started in earnest in February. Dubbed “Respond”, the £5.5m three-year demonstrator brings together ABB, Parsons Brinckerhoff, Impact Research, Schneider Electric and CHP specialist ENER-G along with water firm United Utilities. Distribution network operator Electricity North West is leading the project. The consortium aims to work out the most intelligent response to managing fault current using software and automated systems. The plan is to demonstrate that fault current can be managed at lower cost by using existing assets, such as CHP, allied with new commercial techniques.

Energy networks charge too much, say MPs UK businesses risk paying too much for their gas and power under the new regulatory regime implemented by Ofgem, MPs have warned. Network charges make up almost a quarter of energy bills. A report published by the Energy and Climate Change Select Committee expressed concern that the regulator is failing to keep network costs down because it has set targets for network companies too low. That means that under the new regime, customers will face higher bills than necessary. The committee suggested that the watchdog and the Department of Energy & Climate Change find ways to ensure power companies connect distributed generation faster to the system; that network companies must serve notice of price hikes much earlier; and potentially, do away with locational pricing. It urged Ofgem to set tougher penalties for network leakages and losses. The report also recommended

“Network costs are one of the main reasons dual fuel bills have risen in recent years” that the new eight-year price control period be subject to an external audit midway through and called for the networks’ charging methodologies to be simplified so that they could be more easily compared and scrutinised. Launching the report, Energy and Climate Change Committee chair Tim Yeo said: “The costs charged by the companies that have a near monopoly over the UK’s gas and electricity networks are often overlooked when energy bills are discussed. But network costs are one of the main reasons dual fuel bills have risen in recent years. “Ofgem has created a new regulatory framework designed to ensure that network costs are competitive and that

profits aren’t excessive, but there is clear evidence that the companies are making higher profits than expected. “Ofgem’s chief executive told us that we would have to wait eight years to see whether value for money was being delivered for bill payers. This is too long for hard pressed consumers to wait.” In response, Ofgem issued the following statement: “Britain’s energy network is 17% cheaper in real terms than 25 years ago, £80bn of investment has been secured, and reliability has improved by 30%. “We are in the process of implementing a number of the actions the report highlights, including introducing more competition to networks and looking to increase the notification period of network charges. Additionally, we estimate that our innovation stimulus will see companies realise around £900m of benefits to consumers in the next eight years.”

February/March 2015 | water energy & environment

POlicy & lEgislatiOn

Capacity auction ‘was fair’ Energy minister dismisses ‘big company bias’ claims from renewables groups in capacity and CFD auctions. we&e reports

nergy minister Matthew Hancock has dismissed accusations from renewable lobby groups that the auction run as part of the government’s electricity market reform (EMR) favoured big companies over independent generators. He also rejected claims that the recent capacity auction simply rewarded plant that would have been available without bill-payer incentives. Facing Energy and Climate Change Committee scrutiny on EMR last month (January), Hancock was grilled by MPs about both the recent capacity auction and the imminent allocation of Contracts for Difference (CfDs). The former auction is designed to reward generators for making plant available when it is needed and bring forward investment in new plant. The latter is designed to subsidise low carbon generation. The first capacity auction (so-called T-4 because it secures capacity to be supplied in four years’ time) took place just before Christmas. It procured 49.26GW of capacity at a clearing price of £19.40kW. Most of that power will be provided by existing gas and coal plant, more than 2GW of new gas plant has contracted to supply power, and the DECC was happy with the result. However, the department has subsequently faced accusations that it has largely rewarded existing coal, gas and nuclear plant. Old king coal Sir Robert Smith, the Lid Dem MP for West Aberdeenshire and Kincardine, asked

Hancock whether he agreed with that assessment, made by Carbon Brief (funded by the European Climate Foundation lobby group). “No,” said Hancock. “I think the auction has been fair across technologies and we have a good balance of existing capacity that we want to remain on the system. Refurbished plant is one of the best values for money, and some new generation as well.” Surely “some of the existing stuff would have stayed there anyway?” asked Sir Robert. “I fully expected that whatever the outcome of the auction there would have been some people complaining that it was the wrong one,” Hancock replied. “According to that critique, that is what has happened.” “If there had been much more new capacity, those with existing capacity would have said ‘we have to keep our capacity open’,” Hancock continued. “If there had

been no new capacity, people have said ‘this was supposed to get some new capacity onto the blocks.’ It’s about a balance and there will always be winners and losers.” Big boys club? Similarly, Hancock dismissed claims by renewables groups that their members had been “smothered out” by a process designed to favour big business, and that technologies such as solar PV had been overlooked. Graham Stringer, Labour MP for Blackley and Broughton, brought up evidence to that effect submitted by the Solar Trade Association’s external affairs chief Leonie Green. Hancock suggested trade associations “would be failing in their duty” had they not “pushed for the design to be slightly more favourable to their particular technology… so of course there were proposals that we didn’t take up because we wanted it to be as fair as possible.” He added

he “would have been amazed if that wasn’t the case,” but denied he was suggesting all criticisms were self-interested. John Robertson, Labour MP for Glasgow West, then asked how the DECC had helped smaller participants compete equally for CfDs. Hancock replied that the “proof of the pudding” would be determined after the inaugural auction. Robertson quoted the criticisms by the STA’s Green that sinking £200,000 into prequalification criteria for the CFDs created a disproportionate risk for smaller firms. He also noted comments from Renewable Energy Association chief Nina Skurupska that the CFD framework is geared for companies that understand the market mechanisms, “less so for those that want to enter the market.” Giving evidence to the committee earlier in the morning, National Grid head of regulation Mark Ripley had suggested that those wishing

cfD appeals may cost unsuccessful generators Energy minister Matthew Hancock has warned that companies that do not qualify to bid in the Contracts for Difference (CfD) auction may face bigger hurdles should they try to appeal. He wants to avoid appeals being a “no-cost option” to generators that miss out on government-backed contracts. Hancock was asked by the Energy & Climate Change Committee whether improvements could be made to design of the CfD process and for assurances that the contracts would be awarded swiftly. The Contracts for Difference auction, which allocates contracts to eligible low carbon generators guaranteeing them a set price for power, was originally planned to take place in December with contracts awarded late December/early January. It took place in late February in the end. Hancock claimed that the programme remained “on the expected path as broadly set out, it’s just we knew that if there were appeals we would be on the back half of that [timetable]”. Therefore it was “worth looking whether we get the incentives around appeals right”, he said. He said it was “not necessarily” a case of making them “more administratively burdensome” but said a “no cost… risk free” appeals process meant generators would automatically appeal rather than consider whether they have a good chance of winning. “You wouldn’t want a situation [like that]… because it undermines the whole decision-making process. So will consider that after the CfD auction to see whether we can tighten up on timing.”

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Sponsored column

not switching supplier. They pay on average up to £234 a year more than they needed to by not switching, the report noted, although it made no mention of the fact that many cannot access the cheapest tariffs due to small businesses credit requirements and The CMA highlighted the sharp practices of some concerns that small businesses independent suppliers. were paying over The report the odds for flagged that their energy. It some measures noted that the implemented margins made by Ofgem may by suppliers How much more be a barrier to from their a year households more effective small business competition customers pay on average by between were much not switching suppliers, and higher than may have led to domestic and I&C perverse outcomes, customers, and that such as restrictions on the that pricing transparency number of tariffs, which was lacking. The CMA suppliers interpreted by doing now wants to gather data away with discounts and on prices paid by small effectively raising prices. businesses, particularly It also noted that some those with fewer than 10 proposals by the regulator employees and a turnover could be left to stagnate of less than ¤2 million. without clear timeframes for implementation. Households Concerns around a lack of For domestic users, the readiness for smart meters, CMA noted that it was such as half hourly settlements largely the poor, the old, the for customers, were also noted. disabled and the uneducated The CMA has called that pay the most for their for responses to its initial energy by remaining on findings by 18 March. we&e standard variable tariffs and were recommended by the CMA, it could mean significant changes to the market, and would also mean different prices for customers in different areas.

£234

What did they make of the report? The report drew various responses. The CBI said the CMA must be left to complete its report “without political interference”. The DECC and switching sites such as Which? said everybody should switch supplier. Dieter Helm said that “switching is never going to be enough” and that a simple “backstop” tariff linked to the wholesale price should be mandated for the poor and those that never switched. Labour reiterated its promise to freeze prices if it comes to power. Energy & Climate Change Committee chair Tim Yeo was scathing. “We did not need the Competition Market Authority to spend months and probably millions of pounds to tell us that more people need to switch energy supplier,” he thundered. “I am staggered that [the CMA] appears so sanguine about the lack of transparency in the operation of the big six vertically integrated energy companies that control around 90% of the market.”

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What comes down must go up… By Dave Cockshott, chief commercial officer at Inenco Group Six months ago, the wholesale markets looked relatively flat. Despite political risk from the situation in Ukraine, prices appeared to be at contract lows and the oil price was slowly trundling downwards. Fast forward to present day and we’re all looking windswept from the rollercoaster of a ride the markets have taken us on. By late November, Russia and Ukraine had signed an agreement on gas supplies for the winter period, and then OPEC announced its decision not to cut production, despite falling prices. Between early December and the end of January, Brent oil dropped as low as $47 a barrel. Day Ahead power price fell £17/MWh, yet the dramatic fall wasn’t without volatility. We saw in-day spikes of up to £8/MWh, as supply outages and cold snaps put pressure on the system. But what have the past few months taught us? While few could have predicted such a drop, periods of market volatility and significant changes in price only stress the importance of an up-to-date and robust risk management strategy for energy procurement, to create a purchasing arrangement that more accurately reflects market price. Many with a strategy focused primarily on beating last year’s budget will be satisfied, having locked in a far better deal on the commodity element of their bill than in previous years, whether on fixed or flexible purchasing contracts. For others, business KPIs are linked not just to reflecting but beating the market price, which means the use of far more technical product features to actively manage positions. Flexible purchasing products have evolved rapidly since their inception and there is a whole range of features available, from capped pricing to protect businesses from upside risk, to the ability to lock and unlock to take advantage of falling prices. For many energy managers, the trick is identifying the features that best

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History has taught us that there is no room for complacency in this market suit their organisation, working with a partner who can offer expert advice. While prices show no sign of catapulting back up to 2013 levels any time soon, to misquote Newton: what comes down must go up: history has taught us that there is no room for complacency in this market, and it’s important to objectively follow a defined risk management strategy when deciding when to lock out a position, rather than waiting in case prices drop even further. What’s more, non-commodity costs are expected to become the lion’s share of the bill by the end of the yea. With EMR costs hitting the bill from April and anticipated rises in other costs, at least some elements of the bill will continue to increase. Sadly, none of us has a crystal ball to predict what will happen to the market in coming months. What we can do is put in place a strategy to better manage the impact and taking some control over commodity costs. And, of course, that plan needs to feed into wider strategy that integrates purchasing with overall energy management. That means linking energy reduction, compliance and procurement to ensure a fully aligned plan to drive costs down across the business, ensuring you’re prepared whatever the market throws at us.

Policy & legislaTion

Won’t somebody think of the user? To sort out the energy policy mess, the next government has to stop top-down thinking, dismantle the silos, forget about picking technology ‘winners’ and harness the power of British industry. Crucially, it must stop using the wrong set of numbers when it comes to energy efficiency. That’s the view of Tim Rotheray, director of what is now known as the Association of Decentralised Energy

he Association of Decentralised Energy used to be called the CHP Association. But people no longer think about specific technologies, they want energy solutions. That’s a lesson policymakers could learn. Siloed, central thinking has created a monster, says Tim Rotheray. “There is an overarching problem when you start thinking centrally. In energy we generally split into three different areas: emissions, security and cost. That has created a mass of policies and it won’t work if there are lots of silos.” The Contracts for Difference (CfD), for example, “might work really well if you just do generation. But if you are a user with generation and demand and that demand is for electricity and heat and transport, and you have multiple sites – some large, some small – all of a sudden you have an alphabetti spaghetti of policy,” Rotheray notes. “You can access the Feed-in Tariff [FiT], the Renewable Heat Incentive [RHI], greenhouse gas reporting; Energy Savings Opportunity Scheme [ESOS], Climate Change Levy [CCL]; the Carbon Reduction Commitment [CRC]; some sites might be in the EU Emission Trading System [EU ETS]…” Rotheray takes a breath. “And none of it is designed from the user perspective. You can understand why each different part of the policy has arisen, but it is mind-bendingly complex.” So there is a policy gap? “Yes, but I don’t think we need to make more policies. We just

issues regarding additionality and designing a user-based energy policy should be priorities for whoever forms the next government

need to turn the whole thing around and say: ‘I am an end user. What would I want to do and what would government policy want to make me do. Now how can we bring those two things together?’” For example, he says, “we might say that GHG reporting and emissions trading and CCAs, the CCL and the CRC are all trying to do the same thing. So how can we make those policies work better and make it easier for the end user?” Hasn’t government tried to do that with so-called “red tape challenges”? “True, but often those challenges were ‘how can we make the CRC easier’ [rather than thinking about the policy goal]. That is still a siloed approach and I’m not sure that’s the right way to do it.” Rotheray thinks government should instead have a “real business challenge” whenever it starts thinking about firing off a new policy. “You almost need a theoretical business, quite a complex

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one, to try participating in any new policy or incentive.” The additionality mistake Demand side reduction and response is a case in point, Rotheray says. Which brings him to another policy fail: additionality. That is, if you qualify for one incentive, you can’t claim another. Rotheray understands why the additionality rule was created: no government would want to throw money at solutions that didn’t need it. “But it has created a perverse situation where we are paying a premium for our energy policy.” Recent demand reduction forays by the Department of Energy & Climate Change are the perfect example of additionality gone rogue, he suggests. The DECC last month handed out initial contracts via its inaugural demand reduction pilot. The average price ended up at £229/kW. That compares with £19.40/

kW in the first capacity market auction held in December. “The market then says ‘demand side is expensive because look how cheap capacity was on the supply side’. That could be your conclusion, but it would be the wrong conclusion,” says Rotheray. “The reason [it was so expensive] was that anyone who had a Climate Change Agreement was excluded on the basis of additionality – they have an incentive to do something via the CCA, therefore they can’t participate. So we [DECC and therefore the bill payer] bought other forms of electricity saving instead. We paid £229 a kilowatt and automatically excluded a whole load of good value opportunity. Which doesn’t sound like best value for the consumer.” Government has to think beyond such structural anomalies, says Rotheray, and work towards a consumer value guarantee. “Otherwise you are excluding lower cost options and making the cost of decarbonisation higher. We can’t do that. It is not a reasonable thing to do.” capacity crunching and demanding response Ironically, Rotheray says, the additionality rule appears absent from the capacity auction. “Think of all the coal and gas plant awarded capacity contracts. How many of them would have shut down if the capacity market hadn’t existed? Probably very few, if any.” The problem with the capacity market mechanism is that the department appears

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to have interpreted it as “how do we keep power stations operating and how do we get power stations built?” says Rotheray. “It should have been “how do we keep the lights on at lowest cost?” Because of that it is designed around power stations.” The fact that less than one per cent of the total capacity procured in the December auction was allocated to demand-side response confirms his theory. The problem, says Rotheray, comes back to central thinking – and central thinking with muddled assumptions stops businesses taking part. Rotheray thinks the capacity market design is inherently flawed because it assumes a stress event in theory can occur for an infinite period of time, and will not change. “Of course that is wrong, because electricity demand rises and falls over the day, so 4-8pm is more stressful than midday. But it ignores that and assumes stress is stress. It also assumes you can just keep buying fuel and keep running. That is power station thinking.” That makes it difficult for DSR providers to take part: they can respond for hours at a time, but not indefinitely. “The capacity mechanism enduring arrangements take no account of that at all. Unless you can provide power 24/7, you are not valuable. That’s the problem.” Define success The DECC needs to define what success looks like, says Rotheray. And it needs to put itself in the shoes of businesses if it wants to take advantage of potentially lower cost solutions such as demand response. “Understand what users want, and then think about how to access their value in a way that works for them. Not saying ‘here is what we want and if you can’t do it in its entirety we are not interested’, which is how the system works at the minute.” The DECC is currently tendering research work to

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If you expect the energy user to think and act like a power station, you will come up with the wrong answer Tim Rotheray

determine how much demand response is available in the UK. Estimates of 20GW have been mooted to the Lords inquiry into electricity resilience. Rotheray says that the true level will only be found if government works with industry rather than dictating terms. “If you think of a hotel chain, it might be comfortable with responding at guest changeover times, between 12pm and 3pm. That is not hugely helpful to the system. But it allows them to get comfortable and maybe then go on to do it at peak times. But if you expect the energy user to think and act like a power station, you will come up with the wrong answer.”

to those challenges but not the gamut of an electricity market designed for big players, is more appropriate. “If you choose the FiT you can have a fixed price for your exports. So a fixed feed-in tariff which completely ignores the market. That is why it has been so successful, because it enables people to completely bypass all market risks.” But on the other hand, the CfD revolves around complete market exposure. “So you have one thing designed for centralised generation and a complicated market, and another which is completely de-risked,” says Rotheray. “I would have thought there is a happy medium somewhere in there. That’s what is missing.”

cFD versus FiT It all comes back to Measuring efficiency understanding the user Whoever wins the election, before making the policy. Rotheray says the issues around Rotheray says the centrally additionality and designing a designed nature of Contracts user-based energy policy should for Difference makes the be priorities. But before any same mistake, by assuming of that, they have to get their participants play in the sums right on energy efficiency. wholesale power market. Rotheray says government will “How many people at always fudge the numbers if it 5-10MW trade through the sticks to final energy demand wholesale market. Not that over primary energy savings. many. From our experience, a “We measure things at the lot of people with CHP plants final point of use. But if you prefer not to play in it because look at the energy system, 84% it is very complicated. So that of the energy is lost before its [CfD] market is not final use. And we focus accessible to small on the final 16%. players, and a lot What we need to of people are focus on is the avoiding it.” system energy That savings. If you point was The amount of use final energy recently put system energy lost demand as your to energy comparator, minister before its final which government Matthew use always does, Hancock by the you come out with Energy & Climate the wrong answer.” Change Select Committee. Additionality, decentralised Hancock’s response was that thinking and primary energy the Feed-in Tariff was a better savings could give the next route for smaller generators. administration another But Rotheray says it is not trilemma. But tackling them black and white. He thinks will deliver better value that given the challenges energy policy, says Rotheray. local generation create at “And that is the nub of it: distribution level, a hybrid cost effectiveness.” we&e system which exposes them

84%

February/March 2015 | water energy & environment

Cover story

Renewable energy as an Alfa Energy’s CEO, Damir Ahmovic, explains how it can help businesses turn energy from a cost into an income

uided by the need to decarbonise the grid and increase the security of supply, the government has introduced a number of policies that are filtering their way to consumers’ bills. So far the UK industry has, relatively quietly for the most part, absorbed this increase. However, tensions are building up as more pressure is being applied on the back of the Electricity Market Reform (EMR). Admittedly, the recent fall in commodity costs has helped, but only those who are either on flexible purchasing strategies or those who are renegotiating their “fixed” contracts now. The rise in non-commodity costs means that fully delivered costs may stay the same or even go up despite the falling commodity price, depending on when you signed your last contract. We can all understand why consumers are feeling unhappy. Nobody likes to pay more today than yesterday. On the other hand, our government’s task is not that much different from many others’. The energy trilemma is facing other governments too and everybody must act. Furthermore, most of them are roped into this predicament having inherited budget deficits and empty purses. Acting as an international consultancy in most developed markets, we see a very similar picture everywhere. As long as the consumers aim to achieve yesterday’s conditions without adapting to the new way of thinking, they will continue to endure the financial pain

Fig 1: Identifying your prime objectives is crucial for creating an investment strategy

and remain “behind the curve”, ultimately doomed to pay more. One of the answers could lie in another way of thinking. A paradigm shift is to start seeing energy differently and asking ourselves how we can become active beneficiaries of the policy drivers instead of passive contributors. How can energy be an asset instead of a liability? The policies are pushing consumers in that direction and consumers are rebelliously pushing back instead of taking advantage of it. Historically, energy has been seen simply as a cost, a liability on your balance sheet. Many of the clients we speak to are looking at the right things: smarter procurement through risk management strategies, energy efficiency through new technologies, behavioural changes… to name a few, with the ultimate aim of managing and controlling this spend. However, all these activities are confined to a mindset of managing energy as a cost, as liability. There is a real opportunity to turn a cost into an income, a liability into an asset. If an organisation is able to divert a

14 February/March 2015 | water energy & environment

certain portion of its investment capacity into self -generation (or as it is referred to lately, decentralised power), the benefits could be multi-fold: from strategic to financial. The question is: where does one start in such a complex and objectiveoverlapping environment? The typical industrial and commercial (I&C) energy user has a plethora of legislative and environmental drivers to be concerned about, as shown in Fig 1, with further changes due over the coming years. As such, we can see why it might be difficult to see these challenges as opportunities, but they are exactly that depending on your business model. Fig 2 is a highlevel segmentation matrix that is designed to simplistically pigeon a client based on their sensitivity to/abilities to pass on the costs. If you have the ability to pass on costs, and energy represents a small percentage of your overall cost base, then you may well be ambivalent about exploring opportunities to mitigate these costs further. However, if fully delivered energy costs are having a material impact on your bottom line and you

Fig 2: Investing in renewables – a strategic choice

have limited capability to pass on these costs, it is important that you understand what options are available to you. Generating electricity onsite is one of those options. The attractiveness of investment in any organisation needs to pass an internal rate of return (IRR) test. There are a number of metrics on evaluating an investment. Our favourite is to use the cashflow-based metric known as annual yield. In simple terms, it shows how much income an asset produces on an annual basis in relation to Asset class

rough guide of annual yield

Cash and bonds

0.3%

Equities

0.5-5%

Commodities

Negative (roughly minus 3%, due to compounding contango effect of rolling monthly contracts)

Properties

3-6%

Self-generation

10-35%

Fig 3: A rough guide to relatively sound investments based on yield metric

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asset class the size of investment. The yield may vary within an asset class based on the type, see Fig 3. Besides its strategic value as a high yielding asset, self-generation has its place in a well-balanced portfolio of investments. In a low interest environment, smart money is chasing yields. The problem for many investors is that there are many barriers to entry, such as owning a site, infrastructure and being able to net off own use. Many of these barriers are non-existent for a large I&C client. It is such a sweet spot investment proposition. An important consideration for any investment is an aspect of long-term sustainability. When it comes to the energy sector, in order to find answers relating to this concern, one has to rely on the most credible source of intelligence – IEA (International Energy Agency). Last summer, Dr Fatif Birol, chief economist for IEA, published a paper, titled World Energy Outlook 2014 (iea.org/bookshop/477World_Energy_Outlook_2014). I have highlighted some of the salient points below: • In order to produce a kWh of energy, capital costs have doubled since 2000. • Investment in global energy supply must increase from the current $1.6 trillion to $2 trillion per annum in order guarantee the security of supply, see Fig 4. • In the period from 201435 at least $40.2 trillion is needed ($2.01trillion pa) – 41% to meet rising demand and 59% to maintain production at today’s levels. • Minimum investment in energy efficiency needed until 2035 – $8 trillion. • EU alone needs $2.2 trillion by 2035.

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supply crunch. As much as that lights out is unlikely in my view, having onsite generation does provide a level of energy resilience, ensuring production or essential processes continue uninterrupted.

Fig 4: Investing in global energy supply

• Current prices are approximately 20% below cost recovery levels. (This statistic is before energy prices collapsed by approximately 50% in H2 2014. A more accurate figure given the recent price move is probably closer to 40% below cost recovery levels.) What this means is that energy prices will have to go up to guarantee the return on muchneeded investment. This can happen naturally through rising commodity costs or artificially via subsidies. We already see that non-commodity costs (policy costs) are forecasted to increase. Looking forward, the EMR is forecasted to add an additional £13-25/MWh by 2020 through the Contract for Difference (CfD) and Capacity Mechanism policies. Furthermore, the government has promised investors a commodity strike price of £92.5 per MWh. Like it or not, this almost underpins an investment into renewables. Imagine buying a rental property where you know for sure the rent will be at least double today’s going rates, guaranteed by the government. The investment theme of the past few years has mainly revolved around alignment of views to policymakers, be it the FED, BoE, or the government. As an investor, you have a choice:

you can align your investment to the policy or fight it. There is no other alternative. The UK policy plans seem quite clear and the only losers will be those who continue to manage energy as a liability. Now is the time to start looking at planning for the future energy landscape. So as an investor, what are your choices? What is the risk? There is a wide range of generation equipment available to suit all shapes and sizes and given that most organisations have access to some dormant assets that can be put to good use, the returns may vary accordingly. Considering the fully delivered electricity prices will be rising, the payback period for many of these projects are dropping into the normal realms of possibility, typically two to five years. At Alfa Energy, we have built a system that can produce a desktop analysis report for the most suitable technologies to give you a view of what is available and at what cost. Due to a number of variables that may affect the payback, there is not one solution that suits all. One has to take an analytical view of all considerations whether they are internal or external. There has been some scaremongering about the lights going out due to the inevitable

Below is a self-generation case study to highlight this point. • As indicated in their annual reports, in order to quarantine their plants from any possible disruptions caused by frequent blackouts, five of India’s biggest electricity users can generate as much as 96% of their demand requirement. • On 31 July 2012, the Indian state-owned national grid collapsed, knocking out supply to 640 million people. • Delhi International Airport switched to its own backup power within 15 seconds. • “There was no significant impact from the outage,” said Debasis Ray, spokesman for Tata Motors. “We get our electricity from Tata Power, which isolated itself from the grid.” • Shares of the companies with factories in the affected regions shrugged off the outages. Tata Motors rose to its highest in two weeks on 31 July, while Reliance Industries gained 3% that week. Self-generation of electricity can therefore not only allow you to mitigate against future price rises or power outages, but in some cases it can become an asset in its own right, working for you and your business. Energy has become a strategic issue for most of us now and you need to decide whether you want to be proactive or reactive. If being proactive is the way forward, is investing in self-generation a viable option? If it is: • Be aware of all internal drivers, chose the technology and calculate IRR. • Manage your investments – monitor and review regularly. Or work with a reputable partner who can do this for you.

February/March 2015 | water energy & environment

Gas & ElEctricity

Time to focus on your energy future The government needs to get much closer to the coal face if its interventions are to be effective, says Andrew Bainbridge, chairman of the Major Energy Userâ&#x20AC;&#x2122;s Council

ith a general election looming all the political parties will be desperate to persuade voters that they are the good guys. Ed Miliband rocked the boat by promising to force energy suppliers to slash their prices but there was an immediate backlash from many who predicted that this would result in less investment money for new infrastructure. When I met a director of the National Grid recently he mentioned the huge sums that had to be spent on upgrading its systems. The grid expects and understands the need for change but unexpected legislation causes difficulties. Gradual change following a period of listening to all parties concerned, particularly large customers that need to budget for price increases, is what is required. Our major energy users have been surprised by plunging oil prices but those of whom are long in the tooth know that what comes down will sooner or later go up. The government has made great play about its Electricity Market Reform but is it a poisoned chalice for the new administration? While it is hard to see how current plans to go low carbon based on high energy prices can be fully maintained, where are the changes likely to come? What should industrial and commercial customers be budgeting for? And since the industry needs shoals of money to build replacement and also new plant, how can investors proceed with their plans when the future

16 February/March 2015 | water energy & environment

Will the government realise that for a market to flourish it needs a robust set of rules and not an endless list of prescriptions?

holds such uncertainties? Those who anticipated a huge amount of pain for both customers and suppliers when the Tories and Lib Dems formed their coalition have been pleasantly surprised that their joint policies have somehow survived. But the realities of the increasingly complex marketplace have brought us to the inescapable conclusion that the next government needs to get much closer to the people at the coal face. It must take the trouble to understand how customers and suppliers are affected by their decisions and listen carefully before legislating. That’s why the Major Energy Users’ Council has set up its new Utility Markets Policy Group, so that leading energy specialists on both sides can meet together with the task of agreeing common ground and advise the next political assembly on how to reach more acceptable decisions. The most frequent complaints are that regular policy changes and new, unanticipated initiatives create uncertainty and cause delay with both supply-side and demand-side investments. Too much intervention and detailed policy direction threatens to undermine competition in the industrial and commercial market. We are worried that the same mistakes will be repeated in creating a new fully competitive water market. Although the date of market opening – April 2017 – has been known for a long time we are concerned that neither customers nor suppliers are properly prepared for it. I set up the MEUC’s Water Competition Action Group

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in response to regulator Ofwat’s complaint that it could not attract enough support for competition from large customers. From the start our meetings have been well attended, with suppliers, customers and regulator listening to each other’s view points. Real progress has been disappointingly slow, however. The Water Taskforce set up by Business in the Community has warned that companies must wake up and treat water as a serious corporate issue. There are resource and quality challenges facing the industry and too few businesses have a strategy which will enable them to deal with drought or flooding. At our MEUC Regional Roadshows last year, Business Stream encouraged large customers to start to prepare for the future by examining their needs and deciding if and how they might benefit by obtaining supplies from a different source. Not enough has happened as water is still taken for granted and is usually only a small part of the utility bill. Our policy group will look at water as well as energy issues in the hope that the regulator and the new government will listen more carefully to the people with experience. If I were to offer some simple advice to the politicians and civil servants who will be responsible for making the decisions from May onwards it would be: listen to the people with experience who know what has gone wrong and understand what needs to go right. Encourage feedback. It’s time that the image of whinging customers and fat cat suppliers was laid to rest. we&e meuc.co.uk

The most frequent complaints are that regular policy changes and new, unanticipated initiatives create uncertainty and cause delay

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Low prices are not just ‘empty gestures’

ancashire-based commercial energy supplier BES Utilities has responded to recent comments in the media from Citizens Advice, as well as others, who feel that the recent round of energy price reductions are “empty gestures”, which come too late for consumers to really benefit. BES Utilities claims it was not only the first supplier to announce a planned decrease in its prices in January but is also the only supplier to review electricity prices as a matter of course every six months, to make sure customers always pay a fair and reasonable price. The BES market tracker product ensures customers prices always reflect wholesale costs, meaning any reductions are ‘business as usual’, unlike many of its competitors, where price cuts appear to be made more as a result of market, media and government pressure. Price reviews take place every six months, the next one being due in early April 2015, and based on the current wholesale market, the model behind the product is currently showing a 7% price decrease, which is exactly the reduction BES has seen in

their respective overall costs. Responding to the recent and almost apologetic reductions offered up by fellow suppliers, director Michelle Davidson said: “This product is exactly what the market requires and is, in our view, the only way customers can have confidence that they’re paying a fair price. We pass through our costs directly in line with how they vary. At point of sale the customer agrees a rate with us and then we will transparently show how that fluctuates throughout the lifetime of the contract, which includes responding quickly and putting prices down when the tracker highlights a reduction. “We’re proud that our electricity prices have remained unchanged since April 2013 and the likely decrease in April will mean those who signed up two years ago will be paying significantly less.” Andy Pilley, BES managing director, met recently with the chancellor George Osborne at Downing Street, and other senior politicians are now interested to learn more about how the market tracker product works for consumers. besutilities.co.uk

February/March 2015 | water energy & environment

GAs & ElEctricitY

A more sophisticated approach The social housing sector is often seen as lacking understanding of the energy market and how best to make effective procurement decisions. Magnus Walker talks to we&e about his new role at Procurement for Housing and how he hopes to open providers’ eyes

n increasing number of social landlords view energy buying as a key way to make significant savings for themselves and their tenants, yet according to Magnus Walker, newly appointed head of energy services for Procurement for Housing (PfH), the sector needs a more sophisticated approach to maximise those opportunities. Your role is a newly created post at PfH – what’s changed? Demand for energy procurement in the social housing and wider public sector is growing. Landlords are under increasing financial pressure, largely as a result of welfare reforms, reduced government support and rising demand for their services. There are significant savings to be made in the way they purchase energy and a number have entered the market, often through smallscale buying clubs designed to buy energy more cheaply and sell it on to tenants. But this is such a complex area and landlords need specialist support to ensure they make the most of the opportunities out there. PfH, which was set up by the social housing sector as its purchasing consortium in 2004 and provides services to about 900 organisations, has an energy procurement and consultancy framework agreement in place to reflect that need. My role is to drive this forward by working with social housing providers to ensure they are entering the market with their eyes wide open.

What will you bring to the sector? I have a wide range of experience in energy procurement in the public and private sectors. My previous role was as head of trading for the Government Procurement Service with responsibility for purchasing wholesale gas and electricity. I’ve also worked in energy supply at Norweb, in generation at First Hydro and at National Grid. The attraction of coming to an area like this is the lack of understanding of energy markets and the chance for me to bring insight gleaned from more than 20 years of trading in the UK and on the continent. What kind of issues have you identified? Housing organisations tend to approach this as just another case of “this needs to be bought”. It’s treated like any other market. But the bulk of goods and services that landlords purchase are in markets that are fairly predictable and where the price is largely driven by inflation. There doesn’t appear to be an appreciation that energy buying is very different and that prices are highly volatile and driven by international markets. As a result, most organisations are not acquainted with how to risk manage their energy purchasing. They don’t understand the potential for evaluating different options and the added value for money that can bring. Generally, what happens is individual organisations wait

18 February/March 2015 | water energy & environment

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It’s done as a kind of last minute procurement – get it signed, get the energy ‘done’ – without thinking about what the longer-term impacts are Magnus Walker

until their contract is coming to an end to go out and buy. They don’t give any thought to the future – should we be buying to cover all of energy needs for one, two or three years? It’s done as a kind of last minute procurement – get it signed, get the energy ‘done’ – without thinking about what the longer-term impacts are. I think a lot of my role will be educating them around risk management and understanding with them what their needs are. What could energy purchasing in the social housing sector look like in five years’ time? I want to see a comprehensive energy service that covers the diverse needs of the customer base, and we will do this through consultation and direct involvement of those customers in shaping frameworks. This process, using our professional input, will ultimately determine the scope and structure of the frameworks in the future. The speed of change within the energy sector means providing a definitive answer as to what will be used by customers in five years’ time is difficult to predict. But I do know that the framework must be flexible enough to adapt to changing markets, provide the value for money that the customer expects and incorporate the latest innovative ways of reducing customer demand. This will be challenging but I know with the support of customer representatives an industry-leading framework that meets all the needs of all social housing customers can be built. we&e

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GaS & ElEctricitY

Making ESOS work for you Director of supplier management David Crossman looks at the Energy Savings Opportunity Scheme and how it could benefit UK businesses

ou could almost hear the collective groan of energy managers after hearing about yet another EU energy target plan; this time, ESOS, or the Energy Savings Opportunity Scheme. But, as its optimistic title suggests, could this latest piece of legislation actually benefit UK businesses, if approached in the right way? ESOS has been established by DECC in response to the requirement for all member states of the European Union to implement Article 8 of the Energy Efficiency Directive and is estimated to lead to £1.6bn net benefits to the UK.* Ultimately, the scheme aims to help businesses identify energy efficiency measures and contribute to the UK’s effort against climate change. ESOS at a glance: What is it? ESOS is an energy assessment scheme that is mandatory for organisations in the UK that meet the qualification criteria. The Environment Agency is the UK scheme administrator. Who will it affect? ESOS applies to organisations which, on 31 December 2014: • employed at least 250 people; or • employed fewer than 250 people but had an annual turnover in excess of €50m and an annual balance sheet in excess of €43m; or • are part of a corporate group which meets one of the two criteria above. What does it mean for my business and when? Organisations that qualify for

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ESOS must carry out ESOS assessments every four years. These assessments are audits of the energy used by each aspect of the organisation to identify cost-effective energy saving measures. By 5 December 2015 qualifying organisations must carry out their ESOS assessment and notify the Environment Agency. How ESOS works This scheme is mandatory, so if you qualify you must carry out the assessments within the timeframe: 1. To start the process, identify if you are already compliant. For example, if your energy management is covered by ISO50001 Energy Management System then you can report this compliance directly to the Environment Agency and will not need to undertake an ESOS assessment. If not, you’ll need to measure your total energy consumption. This needs to include everything from buildings, transport and industrial processes. 2. Next, determine your areas of significant use (at least 90%

of your total spend/use). You then need to choose the ESOScompliant assessment routes to cover these areas (including simply an audit). 3. Appointing a lead assessor (external or internal) to undertake or review your environmental audit is the next step. The Environment Agency has an approved list of professionals who can carry out or oversee your audits. There are 15 approved registers of lead assessors, which can be found on the ESOS area of the gov.uk website. Concern has been highlighted over the small number of lead assessors but the Environment Agency has made reassurances that the number of auditors is increasing. 4. Finally, report your compliance to the Environment Agency within the specified timeframe. The scheme requires that the recommendations are considered at board level. However, it is not a requirement to implement the proposals. Save energy, save money So how can ESOS benefit your business? By identifying areas

of significant energy use, the assessment will help you address where you can save energy. Saving energy equals saving money, which can only ever be a good thing. Figures quoted by the Environment Agency herald good news for participants, with expected energy savings reaching £250m per year.** However, those eligible businesses that do not comply with the ESOS scheme, face large financial penalties – £50,000 plus £800 per day, capped at a maximum of 80 days – as well as having their non-compliance published. ESOS may be seen as more red tape for a sector already drowning in complex policy, but for companies looking to improve their bottom line; it could identify ways to save money as well as energy. Some large companies might not prioritise such a thorough investigation of their energy use, but with ESOS being mandatory, it forces these businesses to identify areas of wastage and do something about it. What happens after the assessment and subsequent notification is up to the individual business, but we’d strongly recommend using the information from the ESOS assessment to help save money and energy. To benefit from ESOS, it is crucial to consider how you can implement what you’ve learned as soon as possible. For more information on Haven Power please visit www. havenpower.com and for more information on ESOS please visit https://www.gov.uk/energysavings-opportunity-scheme-esos *Source: Gov.uk **Source: Energy Live News

February/March 2015 | water energy & environment

gas & ElEctricity

Will falling oil prices benefit you? Malcolm Spooner, head of corporate accounts at LSI Independent Utilities Broker, outlines why oil prices have halved and what this might mean for business energy prices

nless you have been hiding under a rock for the past six months you will know that oil prices have been steadily falling. The cost of a barrel of oil is now less than half of what it was just a year ago, and industry experts predict it is not likely to increase again anytime soon. So why have global oil prices fallen sharply and what does that mean for business energy costs in the UK? During the period 2010 to mid-2014 world oil prices hovered around the $110 a barrel, but since June prices have dropped to below $50 a barrel for the first time since 2009 and are expected to tumble even further in the coming months. The reasons for this change are mainly associated with weak demand from many countries suffering an economic downturn, combined with ever increasing production in the US from shale gas reserves. Historically the oil cartel Opec would step in and prop up prices by cutting back production, but on this occasion major players including Saudi Arabia, United Arab Emirates and Kuwait voted against this. Many commentators suggest the reason for this decision is to put the US’s shale oil and gas industry under pressure and perhaps even force investors permanently away from this sector. A big player in this latest game of international “dare” is Russia, one of the largest oil producers in the world. The country is in a state of near economic meltdown, interest rates are around 17% and its

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Before making any firm decisions on accepting a new tariff, check out all the available options and consider how your business might be affected should prices soar by 20% in 12 months time economy relies to a very large degree on export incomes from gas and oil. Despite the fact Russia loses some $2bn in revenue for every $1 fall in the oil price, its energy minister, Alexander Novak has refused to cut production as he fears other producers will take their customers. When economic pressures decide, world oil prices will once again rise and when they do are widely predicted to soar past the $110 a barrel mark in an attempt to recover the losses incurred. However, in truth, no one really knows for sure where the price is going. But one thing is certain, the current fall is making major investors rethink their business plans. For example, oil exploration in high-cost places such as the Arctic and deep-water locations – even the North Sea – is either being mothballed or cut back. New Shale exploration and other schemes yet to leave the drawing board are being put on hold. Even much-needed energy generation projects

20 February/March 2015 | water energy & environment

are seeing investors pull out. So what does all this mean for Britain’s business energy users? In the short term it should lead to a lowering of prices although with the increasing tax element being levied onto bills it is not expected to boost bottom lines by a huge percentage. Indeed recent weeks have seen the Big Six energy suppliers bow to public pressure and announce cuts of about 5% to their tarrifs for domestic customers. We have even had energy secretary Ed Davey commend them for their efforts, while at the same time calling on homeowners to consider switching supplier to get even better prices. And what’s wrong with that? Nothing. It’s a great example of a competitive market. Unless, of course, you happen to be a business consumer. Where are the announcements of reductions for this sector? For those locked into a fixed-price contract with another year to run, it could be irrelevant. On the other

hand, you might be lucky enough to be nearing or at the end of your current contract and hoping your supplier will automatically offer a cut-price deal. But don’t hold your breath. Oh, and if you should happen to be a medium to large consumer of gas or electricity, switching supplier will certainly not be the simple and straightforward process it is in the domestic sector. There’s no guarantee your business would be welcome. Many suppliers are still very cautious about taking on the financial risks involved with a business that could consume several tens of thousands of pounds worth of gas and/or electricity and then default on the payment. However, don’t despair. There are ways to overcome all these issues, but they do, in most cases, require the market-savvy skills and expertise of a dedicated energy management team, whether employed full-time in-house or from a trusted consultancy. Before making any firm decisions on accepting a new tariff, check out all the available options and consider how your business might be affected should prices soar by 20% in 12 months time. Investigate whether you might benefit from opting for flexible purchasing, for at least part of your contract. There are lots of options to choose from. Don’t be pushed by your supplier into making any rash decisions. The only thing that is certain about the year ahead is that it will indeed be extremely challenging. we&e lsiutilitybroker.co.uk

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InSIght Parabolic mirrors automatically follow the sun in order to capture as much energy as possible

Getting over intermittency Solar power on demand? Industry needs new technologies to store solar energy efficiently. One possible answer is latent heat storage solutions based on salt. we&e looks into a possible storage solution

olar power plants do not produce power at night or during bad weather. Demand for renewable energy does not sleep, however. Linde is working with the German Aerospace Centre (DLR) to advance and establish this technology – and to open it up to other industrial applications. Every year, the sun beams 1.5 sextillion (10 to the power of 21) kilowatt-hours of sunshine down to the earth. The technologies already available today are capable of meeting 380% of the world’s energy needs through solar power. Parabolic mirrors are designed to automatically

follow the sun in order to capture as much energy as possible. Shaped like a trough, the curved surfaces concentrate sunlight onto a receiver tube located at the focus of the parabolic mirrors. “A heat transfer fluid flows through these receivers, absorbing the heat from the sun and transferring it from the solar field to the power plant,” explains Stefan Hübner, project manager energy production and storage at Linde’s clean energy and innovation management unit. “The energy stored in the medium can then be used to create power – as long as the sun stays shining at least.” As soon as the sun sets,

22 February/March 2015 | water energy & environment

radiation ceases and the solar power plant can no longer supply energy. Unless, of course, it has stored up excess energy during the day. “With a storage solution, regenerative energy would also be available during the night,” adds Hübner. Working with his colleagues at Linde Group member Bertrams Heatec in Switzerland, Hübner is exploring ways to make solar power more flexible. One of the projects he is working on with DLR is called Direct Steam Generation Store (DSG Store). This involves developing a totally new generation of thermal storage solutions for solar thermal power plants. As Hübner explains:

“We hope to gain valuable insights into the potential of this technology for other industrial applications. It could be used, for instance, to capture process off-heat.” The heat transfer fluid plays a defining role in the efficiency of solar storage systems. In existing parabolic solar power plants, thermal oil typically flows through the receivers. It is heated to around 390°C as it passes through the solar field. In a second step, the thermal oil heats water, producing steam that drives a turbine to generate electricity. The downside of this oil is that it degrades at temperatures in excess of 400°C. Linde and DLR want

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to overcome this challenge by replacing oil with water as the direct working medium. Water could achieve higher temperatures and therefore store more thermal energy. Water has a number of advantages, as project manager Markus Eck from the DLR Institute for Solar Research explains: “If we supply water under a pressure of up to 120 bar, we can produce superheated steam at a temperature in excess of 500°C.” This would significantly increase the process temperature of the power plant and thus boost efficiency levels. Direct solar steam generation calls for specially adapted storage technologies, however. Molten salt, for instance, is a suitable medium to store and transfer such heat. Solar salt “Solar salt – currently the salt mixture of choice – consists of potassium and sodium nitrate,” explains Markus Weikl, product manager at Bertrams Heatec. Both solar salt components must be extremely pure as contaminants such as chloride could result in pipeline corrosion. Stateof-the-art solar thermal power plants working with thermal oil use this solar salt to store sensible heat. “Sensible refers to the fact that energy accumulates as the temperature of the storage medium increases,” explains Weikl. Two large tanks hold the molten salt mixtures at different temperature levels. Collectively, the tanks store more than 30,000 tonnes of salt. During the day, the molten salt is pumped from the “cold” tank (290°C) to a heat exchanger, where it absorbs energy from the thermal oil that has been heated by the sun to reach a temperature of about 380°C. During the night, the salts are fed back to the colder tank. Heat exchangers extract the stored energy and feed it to the power

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plant to generate electricity. The potential heat capacity of molten salt is even higher – with maximum temperatures of up to 565°C. This would be an ideal temperature for the superheated steam and an ideal way to maximise plant efficiency. Currently, tests are under way to explore the benefits of feeding molten salts instead of thermal oil through the solar field. Not only would this enable higher process temperatures, but the direct use of salts would also provide an easy-to-use sensible heat store. Problem with molten salt “But molten salts bring their own challenges,” continues Weikl. If the temperature drops below 240°C, the salts freeze. As the receiver tubes are very thin, the salts can quickly freeze overnight and this would bring the power plant to a standstill. “Once salt has hardened, it is extremely difficult to melt again,” says Weikl. “To prevent this happening, the receiver tubes must be kept warm during the night. This eats up around 6% of the total volume of solar power generated during the course of an average year.” And so researchers are on the lookout for salt mixtures that only freeze at lower temperatures. As part of the DSG Store project, Linde and DLR are exploring a different avenue. They are looking to

“

We hope to gain valuable insights into the potential of this technology for other industrial applications. It could be used, for instance, to capture process off-heat

is subsequently withdrawn, generate steam directly in the salt recrystallises and the solar field and combine can be powered up with this with a latent heat storage heat from the sun again. system. This approach The advantage of latent heat combines the advantages of storage systems is that they high steam temperature, and can capture the hidden energy therefore process efficiency, contained in the steam with the benefits of an itself – also known easy-to-use heat as the enthalpy of transfer fluid vaporisation. that would not According to require costly Hübner: “More anti-freeze of the energy absorbed than 60% of protection. from the sun is concentrated the energy “But even in the phase change absorbed direct steam from boiling water to from the sun is generation saturated steam concentrated in calls for the phase change specially adapted from boiling water storage technologies to saturated steam. And in order to efficiently store the only way to efficiently the huge volume of energy capture this energy is with contained in the steam,” latent salt storage systems.” explains DLR expert Eck. But these thermal hotbeds could be of interest to many Latent heat is the key applications beyond solar Latent heat is “hidden” energy, power plants. “Latent heat which means that energy is storage systems also offer great accumulated as the storage potential for conventional medium changes phase – from power plants, which also work solid to liquid for instance. with steam and heat. This In other words, it is invisible technology would be ideal, to a thermometer. Special for instance, for an industrial nitrate salts can act as latent power plant that might want heat stores – which is why to separate the delivery of they are at the heart of the power and heat,” continues the Linde/DLR cooperation. The Linde engineer. In addition, storage systems consist of a many industrial processes salt tank fitted with long tubes generate off-heat. This could be through which the steam can captured with salts and reused. flow. The exterior of the tubes The experts at Linde, feature fine aluminium fins. Bertrams Heatec and DLR “The fins allow the steam are already looking beyond to transfer its thermal the DSG Store project. “Now energy most effectively to that DLR has shown that the the salt store,” elaborates system works in laboratory Eck. This design increases tests and a demonstration the effectiveness of the heat project, we are keen to further transfer process by several optimise both individual orders of magnitude. components and the concept “The molten salt has to overall,” reveals Hübner. freeze in order to release the This will include computer energy so it can be used,” simulations to optimise the continues the DLR expert. heat transfer process, the The system works in a similar development of industrial way to reusable hand-warmers manufacturing blueprints for based on crystallisation. In the latent heat storage system the case of solar thermal and the construction of a test power plants, the sun heats module. Linde’s Innovation up the crystallised salts by Management team will be means of steam. This melts coordinating the project. we&e the salt mass. If the energy

60%

February/March 2015| water energy & environment

monitoring & targeting

Metering meets Manchester Manchester Central takes energy saving to the next level with cost and carbon-cutting initiative

-mac Technologies has secured a coveted metering contract with award-winning exhibition and conference venue Manchester Central. The large-scale modern facility, which is the venue of choice for some of the UK’s leading events, has employed t-mac Technologies to undertake a detailed programme of metering to boost sustainability across the site. t-mac units have been installed across Manchester Central to give full visibility of the site’s energy consumption. t-mac provides real-time 24/7 data on where energy is being used and potentially wasted in every space of the venue. The data will help Manchester Central’s facilities team to target areas of inefficiency to generate further reductions and savings. t-mac will also be taking a granular approach to metering data providing information on every inch of the venue.

“

These meters will now allow us to take sustainability to the next level

The t-mac units will monitor a number of areas and kit within Manchester Central with 174 meters now being monitored by the t-mac system. These meters include mains gas, electricity and water as well as sub-metering of many other items such as distribution boards, plant rooms, kitchen equipment and waste disposal units. The

consumption information generated is visible on a web-based dashboard and can be viewed on computers, tablets and smart phones. It is also planned that the energy saving data will be displayed on digital signage around the venue. Lisa Gingell, director at t-mac Technologies, explains: “Working with Manchester

DECC backs Big Data trial on district heat networks

dvanced algorithms could soon be used to improve the energy efficiency of district heat networks thanks to a £7m funding programme from the Department of Energy & Climate Change. Smart metering firm Guru Systems’ proposal for a webbased tool to analyse network performance data has made it through to the first round of the government competition, which will see the company conduct feasibility studies.

The technology would significantly reduce the risk of costly inefficiencies on heat networks. These networks are becoming increasingly popular as planning departments promote an ‘eco-first’ approach to new developments. Using algorithms that build on techniques developed for Big Data applications, the technology will be able to recognise patterns in performance data and identify the likely source of any inefficiency.

24 February/March 2015 | water energy & environment

As well as identifying the problem, the new system will also propose solutions ranked by cost-effectiveness, while machine learning will ensure the algorithm’s accuracy continues to improve the more data it analyses. The company’s project is among 17 schemes to be awarded a share of the government body’s initial £m fund, which was set up to encourage more innovative solutions to drive down energy bills and boost low

carbon heat supplies in the UK. It is expected that up to 10 of the best projects will then share a further £6m to fully implement their plans. Guru Systems’ smart metering technology has already been installed in more than 3,000 properties on 35 district heat networks across the UK. The company’s existing systems allow operators to calculate the cost of heat generation and consumer usage in real time, reducing risk and giving peace of mind.

Central and helping them to achieve their energy reduction targets has been a real coup for us. From mapping the venues mains consumption we were able to see the whole energy profile and create targets through the t-mac software. “Enabling business to meter, manage and control energy use and ultimately reduce carbon and cost is at the core of t-mac. We work with clients to help them ‘listen’ to their building and forecast consumption so that they can shape energy saving plans for the future.” Russ Forshaw, director of facilities management at Manchester Central, says: “We have made massive sustainable strides over the past two years to cut carbon and reduce our energy bills by more than a third. These meters will now allow us to take sustainability to the next level. “We can now get an excellent understanding of where energy is being wasted, whether that’s during an event, in build or breakdown. Manchester Central operates 24/7 so we need to monitor energy 24/7. This will lead to more sustainable events, a more sustainable venue and further

significant energy savings. “Manchester Central has 25 meeting spaces and three conference and exhibition halls of 23,000m². Something as simple as leaving lights on can be very costly to the business. These meters will not only save money and energy, they will give us a much greater understanding of the energy resources different events, exhibitions and conferences require.” t-mac Technologies’ energy engineers also project managed the installation, commenting on the installation, one of the t-mac engineers said: “The installation shows the diversity of the t-mac system being retro-fitted into two very different environments – one modern version and the other over 30 years old. Our aim throughout was to ensure a smooth transition to get the best solution and stop the need for any shutdowns on critical/sensitive equipment during installation.” Manchester Central is one of the first major venues in the UK to achieve the international standard for sustainable events management – ISO 20121. we&e t-mac.co.uk

Under the new project the company will analyse several million data points gathered from a number of its live projects across the country. Casey Cole, managing director of Guru Systems, said: “The tool will allow heat network operators to better understand and improve efficiency on their own systems, without leaving their desk and without the need for expensive consultants. “Losses on district heat networks are a huge issue for the increasing number of landlords and developers looking

to build district heating systems into their plans.” The company has estimated that the software could improve the energy efficiency of district heat networks by up to 25%, with a potential CO2 saving of 27,000 tonnes per year across 100,000 homes. There are now an estimated 2,000 heat networks in the UK, supplying local, renewable heat to more than 400,000 homes and 1,700 commercial and public buildings. A further 150 schemes are known to be under development by local authorities across the UK. gurusystems.com

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monitoring & targeting

Join the digital revolution Socomec provides accurate and effective measurement and monitoring of electrical energy quality

ocomec’s DIRIS Digiware range is a fully digital, multicircuit plug and play measurement concept that brings together electrical measuring technology – from sensors to software – to deliver flexibility to installations. Compact and quick to install, DIRIS provides accurate and effective metering, measurement and monitoring of electrical energy quality and can be deployed in both new and existing installations. Socomec regional managing director Andrew Wilkinson comments: “In 1992, a young engineer tasked with launching electronic development within Socomec’s then switchgear division focused his research on electrical multimeasurement. The vision of that young engineer – Michel Krumenacker – opened an entirely new market for us.

Key commercial drivers • Cost reductions • Faster installation and faster commissioning • Self-configuring and integrated software • Simplified maintenance • Improved accuracy in terms of the measurement, management and optimisation of power • Multi-circuit measurement with a common and centralised display • Reduced stock – only nine current sensor ratings from 5 A to 6000A “Socomec has invested many millions of euros in the development of our new highly disruptive, digital electrical measurement technology. We have drawn on the breadth and depth of expertise within our business – from all around the world – and over 40 of our specialist R&D

team members have been dedicated to successful delivery of this new technology.” Socomec believes Securing long-term energy supplies, the identification of drivers for greener buildings, better use of people, energy, space and time – as well as supply, demand, security and storage

issues related to energy consumption – are increasingly challenging and important issues for our industry. DIRIS enables customers to optimise energy efficiency and comply with the increasingly demanding legislative and policy demands. we&e socomec.co.uk

Energy metering with touch screen technology Carlo Gavazzi has launched a new range of singlephase energy meters and analysers which use touch screen technology. The EM110 is a single-

phase energy meter with 6+1 digit electro-mechanical data display; suited to active energy metering and cost allocation in applications up to 45A (direct connection), single tariff, class

26 February/March 2015 | water energy & environment

1 energy meter perfect for when reading is still necessary during power down. The meter is provided with pulse output proportional to the active energy being measured. EM111 and EM112 energy analysers have backlit LCD display and integrated touch keypad suited applications up to 45A for EM111 and up to 100A for EM112 (direct connection), with dual tariff management availability. Measuring kWh and kvarh imported and exported energy. The meter is optionally provided with pulse output, RS485 Modbus port

or M-bus port and if space is ever a problem then the EM111 is only 1 DIN wide and 2 DIN wide for the 100A EM112. Carlo Gavzzi managing director Alan Hickman says: “This latest touch screen technology is now available on our meters which makes standard user operations such as page scrolling, programming and parameter checks not only simpler but faster – as well as easy to read – and avoids any mechanical issues normally associated with using traditional keypads. carlogavazzi.co.uk

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VIEWPOINT

European code for EPCs ESTA has become a signatory of the European Code of Conduct for Energy Performance Contracting. John Field, chair, ESTA Energy Performance Contracting Group, explains the significance

nergy performance contracting (EPC) is becoming recognised as a structure that can maximise the savings achievable by energy efficiency retrofits. Using energy performance contracting, projects can be large enough to attract third party investment, and the provision of guaranteed energy savings over a multi-year service contract puts the focus firmly on deeper, continual reductions rather than smaller quick wins. An established code of conduct has the dual benefits of informing consumers on what they should be demanding when procuring energy performance contracts, while for suppliers it provides a quality mark and framework allowing them to demonstrate a best practice approach. Despite very promising signs in the UK public sector – the GLA’s RE:FIT scheme alone delivering £62.9m of investment in buildings to date – the use of energy performance contracting is still relatively infrequent among commercial organisations. At this early stage in the market’s maturity, research* has shown that the main barriers to adoption include lack of consumer awareness, understanding and most importantly trust. The UK’s energy management industry body, the Energy Services and Technology Association (ESTA), is leading the way in tackling these issues; last year establishing its Energy Performance Contracting Group (EPCG)

“

At this early stage in the market’s maturity, research has shown that the main barriers to adoption include lack of consumer awareness, understanding and most importantly trust

28 February/March 2015 | water energy & environment

to act as the industry hub for best practice and now endorsing the “European Code of Conduct for Energy Performance Contracting” by becoming a signatory. Released in September 2014, the European Code of Conduct for Energy Performance Contracting has been developed by the members of the Transparense project; a pan European initiative covering 20 countries that aims to improve the trustworthiness and credibility of energy performance contracting. The code outlines best practice principles and values for the suppliers of energy performance contracts (known as energy services companies, or ESCOs), defining the quality standard, and arming consumers with a list of what to expect from their suppliers. Olivier Garnier, energy analyst at EEVS (www.eevs. co.uk), the UK delivery partner for Transparense, commented: “Energy performance contracting forms a longterm partnership between a host organisation and their chosen ESCO. To build the trust required to make this work it is important that the parties have a common set of core values that focus on delivering the most successful projects. It is great to see ESTA demonstrating how to achieve this, for their members and the wider industry.” By becoming a signatory, ESTA is backing the code of conduct along with the European Association of Energy Service Companies (eu.ESCO), the European Federation of Intelligent

Energy Efficiency Services (EFIEES), the UK Energy Managers Association (EMA) and about 60 Europe-wide ESCOs. The European Code of Conduct for Energy Performance Contracting can be viewed at www. transparense.eu, where ESCOs that are established or entering the market can demonstrate their stance to delivering best practice energy performance contracting by becoming a signatory themselves. More information on becoming part of the ESTA Energy Performance Contracting Group can be found at www.esta.org.uk. Those that are interested are encouraged to join a members’ meeting as a guest. The next meeting will be held in Birmingham on 11 June. To explore the key considerations in energy performance contracting from the client and supplier perspective, the ESTA EPCG has developed a seminar session to be held at the Sustainability Live exhibition at the NEC Birmingham in Energy Efficiency Theatre One on 23 April 10.30-11.45am. we&e John Field is director of the energy management consultancy Native-Hue (www.native-hue. com). ESTA represents more than 100 major providers of energy management equipment and services across the UK esta.org.uk * Research referenced is the European EPC market overview. Results of the EUwide market survey published at www.transparense.eu

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Building controls

uilding controls are a part of our everyday life and are being used to great advantage in the commercial environment as a means of saving energy and reducing costs. However, not everyone is taking full advantage of the benefits that controls bring to the built environment because many people still use their controls system as a glorified on/off switch. It therefore comes as no great surprise that the intended savings are not being achieved. However, this is an issue that needs to be addressed if we are to take energy efficiency to the next level. In October, the International Energy Agency (IEA) identified energy efficiency as the “invisible powerhouse” that is improving energy security, lowering bills and helping to reach climate goals in many of the world’s most developed countries. For those involved in managing buildings the report is significant because it shows that energy efficiency is an achievable goal that our sector should be taking seriously, if they are not already doing so. The technology for achieving energy efficiency in buildings is now readily available, particularly in the areas such as heating, ventilation and cooling, which are widely acknowledged as the biggest users of energy in most buildings. So that just leaves us with the issue of controlling it effectively.

Joining all the dots The ability for every piece of plant within a building to communicate is essential if we are to achieve true energy efficiency, as Scott McGavin of Mitsubishi Electric explains

A need to communicate When we address the issue of control it is important to note that there is some excellent technology available. The problem stems from the fact that all of the plant and services come with their own control system, which invariably works in isolation. This can mean that the control of the heating, for example, is working independently from the control of the air

30 February/March 2015 | water energy & environment

conditioning and while the controls will still work, they are not communicating with each other to achieve the best results. There have been many reports and studies from organisations such as CIBSE, BRE and BSRIA that have questioned why our commercial buildings are not as efficient as they should be. All of these have pointed towards the fact that long-term efficiency is not built in at the design stage. I think that most people would agree it is an issue which needs to be addressed, but the fact remains that action needs to be taken now and the installation of building controls equipment which communicates properly should be a priority. A more holistic approach, which allows the integration

of these controls into a single building energy management system (BEMS), is therefore what is needed. Although this approach can initially be more costly and time consuming, it would lead to better results in the longer term, and pay for itself in reduced running costs. legislation is a driving force One of the key factors driving this view is legislation, and the rising interest in controls as a means to save energy was bolstered by the recognition in the new Part L 2013 Compliance Guide of British and European Standard, BS: EN15232: 2012 Energy performance of buildings – Impact of building automation, controls and building management.

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60%

of energy saving opportunites are not implemented

The standard is based on a structured list of controls and building automation technologies that have an impact on energy use in buildings and classes are assigned (A, B, C and D) to levels of control in a building to show the resulting energy savings that can be expected. At the heart of the BS EN15232 is a very straightforward and wellknown approach to building services, which is demanddriven. This ensures that services such as lighting, heating and air conditioning are only used when required. But this isn’t the only reason why energy efficiency continues to be an issue. Here in the UK, the Energy Saving Opportunities Scheme (ESOS) was introduced in July 2014 and the first audits will be required by December 2015. ESOS applies to large organisations (excluding the public sector) with more than 250 employees and current estimates are that between 7,500 and 9,000 organisations

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“

The DECC predicts that ESOS will result in an average investment ‘per enterprise’ of £15,000 and that the average potential energy bill savings as a result will be £56,400 per year

will be affected. The Department for Energy and Climate Change predicts that ESOS will result in an average investment ‘per enterprise’ of £15,000 and that the average potential energy bill savings as a result will be £56,400 per year. This is quite a compelling figure and one which we would be wise to take note of, because effective control will be the key to achieving savings like this. However, it may not be as simple as that because the Carbon Trust estimates that although most energy efficiency investments have a return on investment of 50%, experience shows that 60% of energy savings opportunities (identified by energy surveys, for example) are not implemented. demand-driven approach With today’s controls technology, achieving a demand-driven approach is simple and one which can be adopted in almost any size of building – but only if the controls technology is used correctly. What we need, therefore, is an intelligent approach that allows the controls to be used as more than a simple on/off switch. The air conditioning for example needs to be able to respond to different building requirements so that factors such as different room sizes,

usage and occupancy levels as well as heat loads from electronic equipment and lighting can be taken into account – and this can only be achieved if the technology is working together. This was one of the driving forces behind the introduction of MelcoBEMS, which provides an interface between Mitsubishi Electric air conditioning equipment and BEMS via the Modbus or BACnet protocol. It is not surprising that this type of solution is in demand from building owners and managers because the enhanced capabilities that modern air conditioning systems offer is something the industry now takes for granted. Indeed the rapid evolution of technology means that we now expect a high level of efficiency from our air conditioning so why shouldn’t we expect to be able to control it in an intelligent manner? This is perhaps the key point – even the most efficient plant has its limitations if it is not controlled effectively because the ability to anticipate, control, monitor and report performance remains a key factor. So what we need to do is join the dots as far as buildingwide control is concerned, because this is the only way that we will meet our legislative requirements and achieve long-term reductions in energy use and running costs. we&e mitsubishielectric.co.uk

February/March 2015 | water energy & environment

building Controls

Sixth form success The newly formed Newham Collegiate Sixth Form Centre in east London is reaping the rewards from a sophisticated BMS that incorporates SonNet Powered by a SIP wireless sensing system from Sontay

reated following the amalgamation of an old technical college, former planning office and public library, the Grade II-listed Newham Collegiate Sixth Form Centre building is now able to lower energy usage and make cost savings thanks to a Sontay building management system. Installed by Uxbridge-based system installer TRI Controls Systems, the BMS system allows the college to monitor space temperatures for the purpose of controlling the underfloor heating manifolds. TRI chose to install seven wireless SonNet sensors from Sontay, alongside the new SIP interfaces, allowing SonNet to work alongside a Trend BMS. The multimillion-pound project features nine new science laboratories, including a particle physics lab, a biomedical science lab and a bio-diversity lab. A student

and tutorial centre has also been installed, which includes a newly equipped library and learning resource centre, a student social centre and café. The SonNet sensors have been installed in six of the labs and in the lobby area. SonNet offers system integrators, building consultants and endusers the opportunity for smarter measurement and control without the need to install cabling. With the new addition of the RF-IOM-4A-4U Input/ Output Module, SonNet can take any 0-10Vdc, 4-20mA, resistive or VFC signal from wired devices in the field and transmit them to a SonNet RF-RXS receiver. This, in turn, can be read by a controller through the intelligent SIP interface. The strategy within the controller uses this information to calculate control values, which are then passed back through the I/O module to

alter damper positions and other output connections in the field. The SIP range easily interfaces between the Sontay SonNet wireless receiver and the Trend BMS. The product developed by a partnership of Sontay and Synapsys, can be used in conjunction with a Trend or BACnet BMS, helps ensure that a building complies with latest Part L2 Building regulations. The battery-powered SonNet devices are designed around a robust 2.4 GHz, 802.15.4

self-healing tree topology. This eliminates concerns with reception and reliability often associated with existing “pointto-point” wireless systems. If a sensor detects a problem with the signal, it will automatically re-route to find the strongest available path to the receiver. Interference with other radio devices in the same frequency spectrum also been addressed through a proprietary algorithm which continually adapts to site conditions. we&e sontay.com

Distech Controls introduces Eclypse and Envysion Distech Controls has announced the launch of both its ECLYPSE Connected IP and Wi-Fi Product Series, and ENVYSION responsive, web-based design and visualisation interface. Providing connectivity and control, monitoring and

analysis, these new offerings prepare users for the building of the “Internet of Things”. The ECLYPSE Connected System Controller (pictured) is a modular and scalable platform providing BACnet/ IP, wired and wireless IP connectivity, permitting integration with building management systems and convergence with IT networks. It consists of a control automation and connectivity server, power supplies and I/O modules, allowing users to select the type and number of modules to meet their exacting

32 February/March 2015 | water energy & environment

requirements and easily add-on for future upgrades. The ENVYSION, webbased graphic design and visualisation interface can be embedded in an ECLYPSE Connected System Controller or hosted on ECNetAX(coming soon), powered by the NiagaraAXFramework building management system to create advanced user interfaces, from single equipment to complete views of a BMS. ENVYSION enhances mobility with its, HTML 5 interface, for an optimal experience across

different user devices. Leveraging IT infrastructure to deliver a powerful control and monitoring solution, the ECLYPSE Connected System Controller minimises the traditional installation and ownership costs of a building management system. This convergence eliminates the requirement for managing multiple networks and reduces the need for cabling and other materials, as well as the associated costs of installing, maintaining and upgrading them. we&e distech-controls.co.uk

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Lighting

External LED range reaps saving Tamlite Lighting is launching a new range of energy-saving LED ground lights, floodlights and spotlights, which provide bright external illumination, while cutting maintenance concerns to nil

amlite’s external LED range is part of its 2020 portfolio of products for the projects and specification market. This means that not only do Tamlite’s new external lighting options provide the standard long lifespans and low-energy consumption of LED, they also prioritise good light quality. The accurate colour rendering of the products, in particular, means that the colours and details of building facades appear as they really are under the lights. What’s more, all of the ground lights, floodlights and spotlights in the range have been engineered to be robust and fully protected against tampering and extremes of weather, with ratings of IP65 and above. Colin Lawson, head of sales, marketing and product development at Tamlite Lighting, comments: “‘Fit and forget’ is always the ambition when it comes to

outdoor lighting, and the combination of long-lasting LEDs and high-quality product build means that our new 2020 external offerings really can deliver maintenance-free lighting.” 2020 LFL wall-washer floodlight The 2020 LFL linear floodlight features a fullyadjustable 20° beam angle for precise illumination of building facades. With a color rendering index (CRI) of >80, the 2020 LFL ensures crisp colour rendering, and options for colour temperature in either warm white (3000K) or cool white (5000K). An RGB colour change version is also available. IP65-rated and built from extruded aluminium, the floodlight features a 3mm tempered glass lens with semi-frosted finish. Simple surface mounting installation is via a diecast aluminium bracket. The 2020 LFL is available

in two sizes, depending on the size of facade and level of light needed. The 25W version has dimensions of 500 x 78 x 86mm, while its big brother, the 56W version, measures 1,000 x 78 x 86mm. In both cases, the light output and efficiency is excellent. The smaller floodlight boasts an output of 1,500 lumens, with an efficacy of 60 lm/W, while the larger version achieves 2,900 lumens output at an efficacy of 52 lm/W. 2020 LgL wall-washer ground light Similarly styled to the 2020 LFL, the 2020 LGL linear ground light makes it possible to get an uplighter effect with either symmetrical or asymmetrical light distribution. It produces cool-white light (5000K) as standard, with a high CRI of >80. An RGB colour change version of the 2020 LGL is also available. The ground light measures 328 x 63 x 65mm and

achieves a light output of 875lm, with an efficacy of 73 lm/W, while drawing just 12W of power. IP67-rated, the 2020 LGL is built from diecast aluminium, with stainless steel trim and a robust 8mm tempered glass lens. 2020 SL spotlight The 2020 SL circular spotlight produces a narrow beam of light for highly accurate spotlighting out of doors. Built from die-cast aluminium, finished in grey, and featuring 4mm tempered glass, this sturdy spotlight is IP65-rated. Providing cool-white (5000K) illumination (with a CRI of >80) from a 6º beam, the 2020 SL is available in two sizes. The smaller, 12W version has a 151mm diameter and produces a light output of 889 lm, achieving an efficacy of 74 lm/W. The larger, 24W version, which measures 177mm diameter, achieves a similarly high efficacy of 73 lm/W, with a light output of 1,750 lm.

VW gears up for savings Clean lines and sleek shapes make for great car design. These same values are emulated through the lighting chosen by Volkswagen to show off its latest range of cars at its dealership, De Kimpe, in Brussels. RIDI Lighting’s LINIA FLAT showcases the vehicles, while at the same time improving the building’s energy efficiency. The spacious showroom features 70 LINIA FLAT fittings, illuminating the space. The simple design of

34 February/March 2015 | water energy & environment

the LINIA FLAT fitting means that there is no visual clutter on the ceiling and keeps the customer’s attention on the cars displayed below. The precise white light from the wide beam spreads an even light across the vehicles, creating a clean and bright appearance throughout the showroom. The energy-saving capabilities of the LINIA FLAT fitting has allowed De Kimpe to achieve an estimated power saving of 4.8kW/h and helped to build on a new

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2020 gL ground light The 2020 GL circular ground light is built to provide excellent illumination while withstanding damage from vehicles. With its die-cast aluminium body in a PVC mounting sleeve and stainless steel trim, the IP67-rated ground light is able to cope with a maximum load at 30 mph of 1,840kg. Supplied with a 24º reflector, the 2020 GL provides cool-white light (5000K) with a CRI of >80. It is available in three sizes, depending on the level of light needed. The smallest, 13W version produces a light output of 550 lm (with an efficacy of 42 lm/W) and measures 173mm in diameter. When more light is required, the 19W version is able to produce 1000lm light output (with an efficacy of 53 lm/W) and measures 210mm in diameter. The largest, 32W version produces 1500lm of light output (with an efficacy of 47 lm/W), from a diameter of 250mm.

Future-proof your lighting energy costs with Retrofit LED lighting By Saima Shafi Although the rise in energy prices seems to have stalled recently, only a complete optimist would imagine that this is likely to continue for any length of time. In fact, under any circumstances, it’s true to say that organisations would be well advised to consider how best to stabilise their future cost base.

Unbeatable energy savings

Solutions for walkways As part of its 2020 portfolio of products, Tamlite is also launching further external lighting solutions for walkways and pedestrian areas, including Tierra. Available as either a decorative

LED bollard (pictured) or bulkhead, Tierra is powdercoated in satin-black for a stylish finish, while also boasting an IP54 rating. Tierra, along with Tamlite’s other options for LED external lighting, finally makes it possible to achieve a “fit and forget” outdoor lighting scheme, keeping both maintenance costs and energy consumption to a minimum. we&e tamlite.co.uk

green image for showroom and the company. LINIA FLAT also offers low maintenance performance, ensuring that the lamps will not need changing regularly, which is a huge benefit to De Kimpe, as this task is particularly difficult with such high showroom ceilings. “De Kimpe chose the wide beam mode, allowing for the even distribution of light across the whole vehicle display area. The pre-wired system also allows use of spot and track modules to be incorporated,” says Mike Attard, managing director of RIDI Lighting.

The slim line design of LINIA FLAT ensures a modern, minimalistic feel to the De Kimpe showroom while creating an effective and efficient light source during the day, and an impactful light effect during the evening. LINIA FLAT showcases the brand new Volkswagen cars in the best possible light, perfect for closing a sale. LINIA FLAT is available in a wide range of distribution modes via a series of different optical lenses and has sizes and outputs to suit any application. we&e ridi.co.uk.

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It’s been proven that lighting typically accounts for 20% to 25% of a building’s energy usage, therefore the ability to future-proof up to a quarter of your energy consumption is a compelling factor. Retrofit LED lighting offers enormous energy saving potential and savings of between 60% and 90% are achieved when replacing traditional lighting with LED. No other energy-saving technology can match this impressive performance.

Shortest Payback Periods

The outstanding energy savings achieved by installing retrofit lighting means that payback periods are extremely short. The cost of installation is generally recouped within one to three years. Also, the government’s Enhanced Capital Allowance (ECA) Scheme provides 100% tax relief and many suppliers are able to offer flexible financing packages.

Trusted by public and private sector

Retrofit LED lamps and luminaires are becoming increasingly relied upon throughout both the public and private sector. In my own experience, considerable savings have been achieved by Rolls-Royce, British Airways, the Ministry of Defence, Jaguar Land Rover, the Co-operative Food

Group, London Underground, the Environment Agency, Morrisons, London Fire Brigade and many local government agencies. These organisations, and many others, continue to benefit from the unique combination of excellent manufacturing quality, unbeatable performance and proven reliability. It’s also worth remembering that any supplier worth its salt will support its products with robust guarantees.

Extraordinary lamps – ordinary fittings

The latest ranges of retrofit LED lighting offer super bright replacements for tube lights, ceiling panels, SON lamps, high and low bays, floodlights, downlights and many other traditional products – including new filament-style LED bulbs. Importantly, by retaining your existing fittings, you are able to implement an LED relamping programme with minimal business disruption and cost – it’s as easy as changing a light bulb! If you have any lightingrelated questions for Saima to explore, please email tim@ energystmedia.com Saima Shafi is co-founder of Camberley-based LED Eco Lights

Lighting

Industrial solutions Luxonic highlights the value of energy efficient lighting in the industrial sector

uxonic has released a brochure detailing energy efficient lighting solutions for racking aisles and open areas in large buildings. Aislelux and Hi-Max LED luminaires are among those featured in the Industry, Logistics & Etail brochure, as well as case studies that present the financial and carbon emissions savings that can be achieved from investing in Luxonic lighting designs. Significant advances in LED technology have seen Luxonic’s success spread into the industrial sector, where many large buildings still use inefficient lighting. Financial assistance Thanks to Siemans Energy Efficient Financing (EEF) Scheme, companies can meet the monthly finance payments of new lighting from the resultant energy savings of the project. The Enhanced Capital Allowances (ECA) also encourages businesses to invest in energy-saving plant

and machinery by increasing cash flow through accelerated tax relief, allowing Luxonic to help businesses increase their green credentials and reduce running costs even when finances are readily available for immediate expenditure. Luxonic’s qualified lighting engineers carry out a survey of the business premises and present lighting scheme. From this they calculate the achievable energy savings, associated costs and payback information to propose the best lighting solution for the client’s specific requirements. Luxonic lighting designs use high-efficiency luminaires combined with programmed controls and sensors that adjust the outputs according to room occupancy and daylight levels to maximise energy savings. The brochure details the most suitable light fittings for ambient, chilled and cold store environments and the various additions to luminaires to meet the health and safety standards that certain industries, such

as food production and distribution, demand. Featuring various case studies that highlight the energy-saving capabilities of the Luxonic installations, the brochure presents impressive figures that justify investment in lighting technology. One such example is Lancashire-based carpet marufacturer Cormar Carpets, which had its large production area lighting overhauled by Luxonic. The Hi-Max product was installed for higher areas while the CRP ECODIM was used in the lower level bays, and lamps with varying wattage were fitted according to the requirements for that specific area. A total of 761 luminaires replaced the existing 1,007 fittings. Despite the same weekly operating hours an annual saving of £53,049 on running costs was made along with a reduction in CO2 of 320.7 tonnes a year. we&e To request a brochure visit the Luxonic website. luxonic.co.uk

Introducing VERSOFIT. The new standard for fire rated LED downlights. megamanuk.com/versofit

36 February/March 2015 | water energy & environment

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Silence is Silver The brightest LED SON replacement lamp is now also the quietest.

SILENT DRIVE MAGLEV COOLING SYSTEM

Other LED SON replacements run very hot and rely on noisy cooling fans to prevent lamp failure. Our revolutionary new cooling chamber and heat sink are cooled by a practically silent MagLev fan. This advanced cooling allows us to run our chips up to 30% brighter!

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RADICAL NEW DESIGN We have put a lot of thought into the design, to improve the reliability, consistency and performance. New vent ducts create maximum airflow around the lamp. A distinctive LED configuration delivering an even light spread with no shadowing.

ULTIMATE BRIGHTNESS

The G360 range of lamps are the brightest LED SON Lamp replacements available on the market, reaching a staggering 140 Lm/W. TM

These are the ideal retrofit solution for:

LARGE WAREHOUSING INDUSTRIAL EXTERIOR SPACES STREET LIGHTING

Take the G360â&#x201E;˘ LED Challenge, or request a FREE trial run. Put our G360 LED lamp(s) to the test against any other in its class. We are so confident in its performance, if it doesn't deliver more lux in a 'like-for-like' trial, we will let you keep it at no cost.* Register today by emailing your details to sales@goodlight.co.uk with 'G360' in the subject line. Or contact our team on 0845 2183 786 for details, or visit goodlight.co.uk. *For terms and conditions, visit www.ledblog.co.uk/G360-Challenge

Lighting Switching to LED technology made easier

Megaman launches fixtures range

To complement its energy-saving lamp range and use the company’s breadth of lighting knowledge, Megaman UK has launched a comprehensive collection of high-quality fixtures and integrated units that are versatile and can be used in a wide range of applications including restaurants, hotels, retail units and offices. Designed for use with Megaman’s LED low energy lamps, the new range offers modern and stylish fittings for internal use and includes integrated, recessed, fixed, tilted downlighters, track lights and the newly launched fire-rated VersoFIT downlighter. The range also includes exterior rated fittings, which include the Cortona floodlight and Dino, a waterproof LED batten that can be used as an alternative to T5 and T8 fittings. All Megaman fixtures are designed to replace traditional, less efficient lighting while offering substantial savings on energy savings combined with efficient visual comfort. The low operating temperature offers protection for the fixture and the user, while maintenance is considerably reduced due to the quality materials used in their manufacture and the longevity of the lamps. megamanuk.com/products

With the accessory set for TALEXXmodules LLE from Tridonic, existing linear luminaires equipped with T5 or T8 fluorescent lamps can be quickly and easily upgraded to state-of-the-art LED technology. Upgrading existing luminaires to LED technology is a quick and simple matter of replacing the existing lamps with TALEXXmodules LLE 16 and 24. Available accessories include covers with different transmission grades, end caps and fixing clips, which allow the LED light sources to be fixed in place without the need for screws or tools. The end caps offer complete protection against accidental contact with the LLE module and the various covers provide high levels of translucence and optimum distribution of light. When comparing two 36 W T8 light sources with a single TALEXXmodule LLE, the initially higher procurement costs will be offset in less than two years thanks to the much lower operating costs. This calculation is based on an operating time of 10 hours a day for 250 days a year. Fluorescent lamps have to be replaced on average once every three years, while LLE modules will operate for 50,000 hours. There are also total savings of around 65 kg of CO2 per light source. Tridonic provides a package of solutions and services, offering a one-stop shop for a wide range of products based on LED technology. The accessory set for TALEXXmodule LLE is Tridonic’s latest addition to its portfolio for upgrading linear luminaires to LEDs, opening up new possibilities for lighting design. tridonic.com

Wieland Electric makes connection in the City Wieland Electric’s structured wiring system Metalynx2 has been used for the connection of power and lighting in the newly redeveloped 5-7 St Helen’s Place in London’s Bishopsgate. Installed and specified by the Designer Group, the Metalynx2 structured wiring system allowed for easy installation on site and maximised productivity. The six-storey building owned by The Leathersellers’ Company, one of the ancient livery companies of the City of London, has undergone a complete redevelopment with the front facade retained but the rest of the building demolished and totally rebuilt. Care had to be taken by construction company Brookfield as the building was next to St Helen’s Church, a Grade I listed, 800-yearold building with temporary buttressing used to support the ancient building during the reconstruction process. The use of Wieland’s Metalynx2 at St Helen’s Place allowed for recessed modular lighting and power to be fed via separate MDB’s with home

38 February/March 2015 | water energy & environment

runs along the containment route out to open plan office areas. Using the Wieland structured armoured system allowed for 70% reduction in man hours as it comes compete on site for easy connection. Wieland’s extenders, tees and fused spurs were also used to feed LCMs and coil fans on site. Designer Group UK managing director Nick Baish says: “The solution offered by Wieland has reduced our production time and offered a good quality installation with flexibility for future CAT ‘B’ fit out”. Metalynx2 offers a wide range of benefits that include compact design for easy installation through to fire barriers and stud work walls. The system is designed for the efficient installation of lighting circuits and other power requirements that are located above ceilings – all pre-wired and pre-tested off site. The system also has the benefit of future proofing to allow changes and reconfigurations. wielandmetalynx.co.uk

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CP Electronics launch new 6-pole ceiling rose CP Electronics, a leading manufacturer of lighting controls, has announced the launch of its new 6-pole ceiling rose, VITM6 ROSE. The ceiling rose offers quick and easy installation and completes CP’s popular Vitesse Modular lighting connection system range. Designed to offer significantly improved space for wiring, the 16A rated VITM6-ROSE is manufactured using flame-retardant material and can be simply connected to CP’s Vitesse Modular dimming marshalling box via the appropriate leads. The VITM6-ROSE can be either free sitting or secured to a BESA/conduit box and offers the installer an additional 15mm depth when fixed within a BESA box. VITM6-ROSE is supplied in kit form, which includes CP’s patented hood and base latching system, with the base clearly identified to ensure correct and easy wiring for the installer. The double latching feature prevents loose connections, securing the VITM6-ROSE to the luminaire plug. The hood is designed for captive screws for ease when replacing or rewiring. The connectors are detachable for simple termination and supplied as standard black/grey – though black/blue connectors are also available on request. All CP Electronic products are covered by a five-year warranty. cpelectronics.co.uk

Peace of mind for lighting products

By insisting on products that bear the LIA LAB mark, lighting specifiers can be sure that their lighting designs will deliver the performance their clients expect, while giving them extra reassurance and peace of mind. Furthermore, the scheme operates in partnership with the Energy Saving Trust (EST), so that compliant products can also be marked with the EST verified brand mark to provide additional assurance of energy performance. The LIA Laboratories verified brand mark provides independent verification of the performance of most lighting equipment, including luminaires and lamps/LED modules. With accurate data provided by the scheme you can ensure conformance with legislation, quality control and the support of product marketing g claims. What’s more, your customers can be assured that the quality of the testing acts as a guarantee that the product in the box does exactly what it says on the box. “When specifying or purchasing lighting products it is important to be confident that those products will deliver the expected performance in line with the claims made by the manufacturer,” explains LIA Laboratories general manager Mark Salt. “This is particularly important for new lighting technologies, such as LEDs, where misconceptions and misrepresentation have resulted in a degree of wariness. Specifying LIA LAB verified products is the best way to ensure that the required performance is achieved,” he adds. LIA Laboratories provides an ISO 17025 accredited testing, verification and certification service. It is the UK’s largest independent test laboratory dedicated to lighting and has more than 20 years’ experience in testing lighting products. It also has the largest scope of UKAS (United Kingdom Accreditation Service) accreditations for lighting and supporting products in the UK and is the UK government-appointed notified body under the Low Voltage Directive. lialab.org.uk

ControlZAPP

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

01249 44 33 77

DANLERS Limited, Vincients Road, Chippenham, Wiltshire, SN14 6NQ Email: sales@danlers.co.uk Fax: 01249 443388

www.danlers.co.uk

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February/March 2015 | water energy & environment

drives & motors

ABB’s action plan ABB is launching an all-new Energy Efficiency and Productivity Improvement Plan aimed at providing step-by-step support for enhancing the performance of motor-driven applications using variable-speed drives and high efficiency electric motors

BB’s new Efficiency and Productivity Improvement Plan takes into account the often-overlooked productivity benefits that variable-speed drives bring. “When drives were initially introduced some 40 years ago, the focus was on regulating motor speeds to improve production output,” says Dave Hawley, general manager for ABB’s UK motors and generators business. “It is only in later years that the focus on energy efficiency began to dominate. It is time to redress the balance and once again highlight the important features that variable-speed drives offer

to improve productivity.” Included within the 10-stage plan is an energy and productivity appraisal that is undertaken by ABB and its network of authorised value providers. The appraisal starts by outlining the scope of supply, focussing on processes and applications where significant energy savings can be made. These will most often be variable-torque applications that obey the cube law, running continuously and where flow is controlled by a mechanical means such as valves or dampers. The productivity part of the appraisal will look at both variable- and constant-torque

40 February/March 2015 | water energy & environment

loads, their control methods and where improvements such as reduced maintenance, increased availability or product quality can be made. The next step is monitoring and data collection, which involves identifying applications that may be running inefficiently. An ABB engineer will look not only at fixed-speed motors but also any drives currently being used, to see if the application is running at maximum efficiency and productivity levels. The selected applications may be monitored in order to accurately determine which applications are consuming the most energy or operating inefficiently. This stage may be performed over a sevenday period, to gain a complete picture of the plant’s typical energy use and productivity profile.

Data analysis takes the findings and identifies potential savings using dedicated software. The findings are presented, with tables and graphs to help identify where savings are likely to arise. Data available includes present energy usage, areas of potential savings, payback time if an investment is made in drives and/or motors, and CO2 emission reduction. Recommendations consist of an action plan, usually comprising an executive summary and a detailed engineer’s report, highlighting applications that can benefit the most from using VSDs. The figures will be translated into monthly savings, and there will be detailed recommendations for fitting particular drives or motors. The report shows the expected payback time on fitting new equipment. Implementation uses the recommendations from the appraisal and identifies the correct drive and motor for the respective application. ABB can help with the installation and start-up or commissioning of the drive and motor. ABB’s network of dedicated authorised value providers are fully trained and experienced in these services. Verification and follow-up analyses the new equipment fitted and looks at the energy savings achieved against the predictions shown in the engineer’s report. This will also help justify the investment in drives and electric motors. we&e abb.co.uk/energy

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2015

facilities management

NEC, Birmingham 24 – 26 March 2015

Discovering innovation at the heart of the facilities industries

REGISTER NOW! After a hugely successful launch event, Facilities Management 2015 will return for a bigger and better second edition this month – this is your best opportunity to source the latest suppliers and products, network and find the best solutions to improve the energy management of your organisation.

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ESOS updaTE

A minimal report framework Vilnis Vesma explains his initiative in defining what the Environment Agency has so far declined to set out

he Energy Savings Opportunity Scheme requires, in a nutshell, that participants arrange assessments to identify cost-effective energysaving opportunities. Having done so, they merely have to file an online declaration to that effect, identifying among other things the qualified lead assessor who signed off the work. In terms of the assessment methodology, the scheme is quite loosely drawn. This is good and helps it live up to the “light touch” spirit in which the government said it would implement it. Assessors and auditors can deploy whatever methods they wish, and if they cannot meet the precise requirements on matters such as the data they use, a comply-or-explain mechanism gets them off the hook. Hopefully this will allow them to use professional skill and judgment to better effect than if methodology had been made more rigid. The Environment Agency, which operates the scheme, has not even issued a reporting template. Again, this may be viewed as welcome flexibility, but the counterargument is that it will lead to inconsistency in the marketplace. A number of qualified lead energy assessors have expressed surprise at this omission and even taken it up with the agency. I picked up on this debate in the LinkedIn Group “ESOS – UK mandatory energy assessments” and conceived the idea of drafting something for group members to comment on, develop, and

draft proposals The proposed minimal ESOS report framework 1. Background 1.1. Enterprise(s) and site(s) 1.2. Lead assessor (including professional body and membership number) 1.3. Client representatives 1.4. Criteria for cost-effectiveness (Client’s preferred methodology and threshold) 1.5. Disclaimers and confidentiality 2. Summary of cost-effective opportunities identified (detail follows later) 3. Identification of significant energy uses 3.1. Total energy consumption 3.2. Purchased quantities 3.3. Verifiable data sources used 3.4. Date ranges 3.5. Justifications for use of non-compliant data 3.6. Estimated allocations of consumption between principal uses

“

This may be viewed as welcome flexibility, but the counter-argument is that it will lead to inconsistency in the market-place

42 February/March 2015 | water energy & environment

3.7. Methods used for estimation 3.8. Uses identified as falling within the 10% de minimis band 3.9. Uses covered by exempting measures 3.10. Significant uses to be audited 4. Identification of opportunities 4.1. Recommendations from prior studies 4.2. Observations during current audit visits 4.3. Preliminary evaluations 4.4. Data used for forensic analysis (Sources, frequency and date spans; justifications for use of non-compliant datasets) 4.5. Methods of analysis 4.6. Rejected opportunities (list with justifications) 4.7. Estimates of costs and savings (including cost-effectiveness evaluations) 4.8. Schedule of recommendations 5. Signatures 6. Appendices (for example, instrumentation details, calibration etc)

ultimately deploy. My first stab got broad support and in some cases an enthusiastic welcome; the revised draft, which takes into account the group’s feedback, is given in the box above. It is important to appreciate that it is deliberately proposed as a minimally compliant framework, one advantage of which is that using it will make it easy for the Environment Agency to audit assessors’ work if needed. Some members of the ESOS group argued for various additions, such as ranking the opportunities, reporting non-energy benefits, including implementation

plans, and so on. Most of these suggestions did not make it into the revised version. There is, of course, nothing to stop assessors elaborating their reports to accommodate these laudable elements, although personally I would counsel the use of separate “companion” reports to avoid the risk of mission creep on the part of the Environment Agency’s auditors. we&e The author can be reached on 01531 821350 or email vilnis@vesma.com. His website (vesma.com) provides free information, resources, and an occasional newsletter all relating to energy management

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ESOS compliance? Yes, you can… if you get a move on With only 10 months to comply with ESOS, many companies are still dragging their heels, says Robert Gevargiz, director of ADIAN Consulting

ewsflash – the deadline for compliance with the government’s latest mandatory energy initiative, ESOS, is 5 December 2015. Yes, that’s December this year. Yet despite being two months into 2015 already, and with the ESOS clock ticking, it seems many companies are failing to get things moving. Interestingly, some are still struggling with the acronym itself – although, to be fair, it’s not altogether surprising that there are those who are still in the dark about the Energy Savings Opportunity Scheme. The Environment Agency sent out letters about the scheme last year, but whether those letters hit their intended target – ie, the person who will be dealing with compliance – is another matter. For those that did get the memo, some have fallen at the first hurdle. Companies should have assessed their eligibility for ESOS by 31 December 2014. However, a quick ring round of some local companies illustrated that not everyone has even got that far. For anyone still unsure, a company must comply if it has either 250plus employees or an annual turnover exceeding ¤50m and a balance sheet exceeding ¤43m. The only exception is if you’re covered by ISO 50001. Even at this stage, there is uncertainty. One company secretary I spoke to queried whether the definition of a balance sheet was the “net worth” or “assets”. Another, from a building society, wasn’t

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clear if he should work out the company’s sales figure by value of loans awarded or interest received from those loans. With some companies still trying to figure out the figures, it’s no wonder so little headway has been made. For corporate groups assessing their need to qualify, there’s more potential confusion. Fortunately, the DECC’s 90-page guide gives assistance on this matter with a number of illustrative examples. The main point to note is that where a corporate group contains at least one eligible undertaking in the UK, the entire UK operations of the corporate group will need to participate in ESOS. But who is ultimately responsible for steering the company through to compliance? Ideally by now, companies within a group should have decided who is going to be the “responsible undertaking” – that is, the one who will take overall responsibility for ensuring compliance. The DECC guide

back to bite similarly minded states that as a default this will companies in the proverbial. fall to the highest parent, with The fact is, there isn’t an scope for another undertaking inexhaustible supply of within the group to be ESOS lead assessors, the “responsible so companies undertaking” too. coming to ESOS Again, the DECC later rather guidelines than sooner provide useful might find examples to The fine for themselves show how non-compliance struggling this will work to secure in practice. with ESOS one. And the This leads longer companies nicely onto dilly dally over disaggregation. Do kick-starting ESOS, the you group together or do you less time they’ll have to get go it alone on the compliance their own in-house staff up path? For companies where to speed as a lead assessor. this question has yet to be Having taken the ESOS pulse, raised, I’d suggest there’s some I fear that some companies may serious catching up to be done. be in danger of missing the What many companies December deadline. And that’s seem to be forgetting – or something the Environment choosing to ignore in the Agency won’t be taking lightly, short term – is that ESOS is with fines of up to £50,000 a mandatory obligation. One for non-compliance. facilities director I recently There’s no point in burying spoke to, whose company has your head over ESOS. The 210 sites spread out nationally, compliance is part of a fourtold me that ESOS wasn’t on year cycle so it’s not going his priority list. It’s a laissez to go away. And while this fair attitude that could come time around companies aren’t legally obliged to implement any of the energy savings recommendations that make up the ESOS assessment, this may not be the case in future. So, before ESOS turns into an SOS, companies should put compliance at the top of their to-do list and consider their options. They can then engage an accredited ESOS lead assessor to get the ball rolling before time really does run out. we&e

£50k

February/March 2015 | water energy & environment

HVAC

Hot air rises and so do costs Destratification can help save energy within a building by smoothing out differences in temperature whether you are cooling or heating. Airius has launched a range that also purifies the air

cross the world rising energy prices have resulted in research into reducing energy consumption within buildings. While there are many energy saving technologies available, thermal destratification is rapidly becoming recognised as a cost-effective energy reduction solution when used in conjunction with heating and cooling systems available on the market. Thermal stratification is the temperature gradient between the floor and ceiling due to the natural phenomenon of thermal resilience. The Airius destratification system is the perfect solution to improving the efficiency of heating and cooling systems

reducing energy consumption, running costs and carbon emissions by 20-50%. Any building that is artificially cooled with a ceiling height from 2.5 to 38 metres will benefit from the Airius system. Highly energy efficient, Airius fans circulate heated or cooled air more efficiently to balance temperatures and improve internal environments that will eliminate hot and cool spots, make HVAC systems work less and prevent large internal atmospheric losses each time doors and windows are opened. In 2013, in response to requests from facilities managers, architects and building owners for a more stylish design, Airius

launched the Designer Series range. This new range offers the same features, benefits and technology as the Standard Series that can be tailored to any custom RAL colour to compliment all architectural designs. In 2014, Airius launched the PureAir Series. These fan units not only provide the benefits

of destratification, but also include a highly efficient air purification and odour control system to reduce viruses, bacteria, gases, mould and odours by more than 90%, creating clean, healthy and odour free indoor spaces. Airius is now the world leader in destratification technology and has seen a significant success and growth in sales in the past few years, with more than 85,000 fans sold worldwide. Airius offers to provide detailed quotations and proposals, energy reduction estimates, installation placement guides, as well as post sales follow-ups to ensure customer needs and expectations are met. we&e airius.co.uk

Hotel modernises with the same but different After nearly 30 years’ reliable service at a large hotel and conference centre in Surrey, one of the original Stokvis Econoflame R18 gas boilers has been replaced with the modern equivalent. The boiler plant at the Holiday Inn Guildford is maintained by Economy Heating Services, which has long experience of the hotel industry. The new boiler offers the first response to demand from the 168 guest bedrooms, kitchens, pool complex and other facilities. A spokesperson for Economy Heating Services commented: “As a specialist heating installer dealing mainly with hotels, as well as some schools

and other types of property across England and Wales, we have a good working relationship with Stokvis and frequently recommend the manufacturer’s equipment to our clients based on their performance and the

44 February/March 2015 | water energy & environment

level of service provided. “In the case of the Holiday Inn Guildford, which is one of the chain’s bigger venues, the hotel had two Stokvis R18s when it was built in the 1980s. Now one of the original boilers needed replacing, we

recommended the R6539, which has been installed and set up as the lead boiler. This means it provides the bulk of the load for the bedrooms, kitchens, leisure complex with pool and Jacuzzi, as well as the conference facilities. “The ground floor boiler room also still contains the original pair of Stokvis Econoplate heat exchangers and a later buffer vessel for the hot water service.” The R6539 is a fully modulating gas-fired boiler that responds to match demand in the most fuel efficient manner possible, while continuing to offer reliability and low maintenance characteristics. we&e stokvisboilers.com

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The Ultimate Combustion Technology We are a market leader in the design, manufacture, installation, commissioning and servicing of standard and custom built burners. Our plug and go digital burner controls, with variable speed drive and touch screen interface, promote energy efficiency, optimum performance and user friendly operation. Our range includes burners for a wide variety of fuels, including: Gas Oil Dual Fuel Biogas Syngas Other waste combustible fluids GP Burners (CIB) Ltd Tel: 01793 709050 Email: info@gpburners.co.uk Website: www.gpburners.co.uk

HVAC

Flight fantastic

Airedale International has helped BAE Systems achieve significant savings on computer room air conditioning energy consumption

lobal defence, aerospace and security company BAE Systems has achieved annual computer room air conditioning energy consumption savings of 70-80% through an extensive programme of capacity control upgrades at one of its major Military Air & Information sites in north-west England, The company required a cost-effective upgrade solution for the site at Warton in Lancashire that would increase cooling performance and deliver significant energy efficiencies without disrupting critical testing and production of combat and training aircraft such as the Typhoon and Hawk Advanced Jet Trainer.

â&#x20AC;&#x153;

The savings have been measured and amortised to give an annual saving of around ÂŁ350,000

46 February/March 2015 | water energy & environment

The extensive programme of component upgrades to more than 70 Airedale and Denco precision air conditioning (PAC) units, which included installing electronically commutated fans, electronic expansion valves and other energy efficiency components in addition to controls integration expertise and other system enhancements, has also improved resilience. BAE Systems expects to recoup the costs of the project within 15 months. Airedaleâ&#x20AC;&#x2122;s controls division worked as part of the project team to devise bespoke chilled water and mechanical direct expansion control strategies to maximise the part-load efficiencies of the

external Airedale chillers. To minimise power consumption and provide redundancy the PAC units were programmed to operate in run/standby mode alternating after a set number of hours, ensuring even wear of components and providing back-up where maintenance is required. The PAC units were also networked and integrated with the existing building management system delivering remote temperature and humidity management. The flexibility of the new Airedale controllers also meant that controls strategy and air balance could be tailored to individual room conditions, minimising energy consumption while

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CRAC units over a 12-month maintaining close temperature period. The savings have been and humidity control. measured and amortised Jon Farmer, energy manager to give an annual saving at BAE Systems, Military Air of around £350,000.” & Information, said: “With British manufacturer, the help of Joule Consultants, Airedale International, BAE Systems identified has significant an opportunity to experience reduce energy of projectconsumption of managing the computer complex room air Potential savings retrofit conditioning in air conditioning projects units at in critical our site by for computer environments up to 80%. rooms having worked Airedale was on a large number selected as the most of sites including competent company Epson, the National Gallery, with the best product to Reuters and Vodafone in meet our needs. The project addition to numerous public involved retrofitting new EC sector facilities UK-wide. we&e fans, chilled water valves airedale.com and controls to more than 70

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HVAC

An open and shut case Patented boiler optimisation technology from Energys is helping a police constabulary to make arresting reductions in its gas consumption

adequate levels of heat within buildings at external temperatures of up to -6°C. However, an average winter day is 8-10°C, hence the boiler has a lot of spare capacity. This means, under normal conditions, that it will operate typically at 3001,000 seconds per cycle. By extending the cycle (in the process reducing the percentage of burn time) and using the large volume of hot water that exists in a commercial hot water system to maintain temperatures, the efficiency of the system can be improved as the boiler will burn at its optimum efficiency for longer.

von and Somerset Constabulary is a police force with green credentials at its heart. Under a sustainability programme of work, the force is committed to reducing the carbon emissions from its buildings by 30% in the period from 2009 through to 2016. However, the organisation is keen to point out that being environmentally proactive is not just about “doing the right thing”, it is about making savings to deliver value for money to the community it serves. Policing energy efficiency One of the principal environmental initiatives deployed by Avon and Somerset Constabulary is reducing the amount of energy it uses in buildings by making them more efficient. To help facilitate this ambition, the force turned to Energys for help with controlling its gas consumption at 10 locations across the region. After a full assessment of the facilities and requirements, Energys recommended the use of its boiler control technology, which is designed specifically for floor-standing boilers between 50 and 2000kW. It is based on patented technology that optimises the firing pattern of a boiler. Typically, users will witness 50-100 fewer firings in any 24-hour period. In essence, this delivers savings in gas (or oil) consumption by extending the cooling curve. Crucially, these boiler controls have remote access

“

Typically, users will witness 50100 fewer firings in any 24-hour period… this delivers savings in gas (or oil) consumption by extending the cooling curve

48 February/March 2015 | water energy & environment

18.8% Average saving in gas consumption achieved across 10 locations

and download functions, meaning that there is much greater visibility in terms of the gas used and any savings achieved. This gives external parties, such as energy management companies, the ability to view the consumption data for easy monitoring and reporting. Following the installation of the boiler optimisers (installation only takes about one hour), the remote downloads from Avon and Somerset Constabulary report that the gas savings being achieved range from 14% to 25%, with the average currently standing at 18.8%. So, how does Energys’s boiler optimiser actually save fuel? Well, heating systems are designed to provide

Substantial energy reductions Most customers adopting this technology will save between 15% and 30% over the course of a year. A not insignificant sum in an era of high energy prices. What’s more, in combination with the remote access and download functions, keeping an eye on energy performance and savings has never been easier. Ultimately, intelligent boiler optimisers from Energys are well-proven technologies that can improve the efficiency of a boiler without affecting the temperature of the building. In fact, the company’s range of boiler optimisation systems saves energy no matter how cold the room temperature or how heavy the load. we&e energysgroup.com

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Dunphy burners are designed with axial air flows, internal flue gas recirculation and special combustion heads to deliver high reliability, excellent operating efficiency, low fuel consumption and ultra low NOx emissions. Our multi fuel burners will simultaneously fire biogas and natural gas and have the capability to burn gas and gasoil. Our RatiotronicTM control systems manage the safe cofiring and switching of fuels as well as modulation and sequencing. Axial air flow burner with low NOx head

Dunphy design, manufacture, install and maintain fully equipped, containerised boiler houses which are ideal for sites where space is tight or where professional build control is required. Assembled and fully tested in our purpose built factory, containers are then transported to site and quickly and efficiently linked up and commissioned by our specialist engineers. We prepare all FDS reports, DSEAR analyses, SIL and risk assessments. For further information, contact sharon.kuligowski@dunphy.co.uk

New Horizons Having recently invested in a new state-of-the-art facility in the UK - including a plasma cutter, sub arc welding equipment and new lifting cranes - Fulton now has the capacity to manufacture pressure vessels for its horizontal and vertical steam boilers in Bristol. All this at a time when many companies are looking abroad for low-cost manufacturing solutions! This increased capacity means Fulton can now supply pressure vessels and complete heat transfer solutions to its own customers and other Fulton companies in the US and China. To buy British, call +44 (0)117 972 3322, email sales@fulton.co.uk or visit fulton.co.uk.

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HVAC

A viable alternative Fulton is associated with boilers and isn’t a name many will have considered when specifying thermal oil systems… until now

ulton’s thermal fluid heaters feature a fourpass, high-efficiency design that pre-heats combustion air. Their compact construction can, like many Fulton heat transfer systems, be skid-mounted with circulating pumps, expansion vessels and related pipework; and the range includes models with heat outputs to 3500kW with standard operating temperatures of 345°C (temperature outputs of 400°C are also available with optional heater enhancements and suitable thermal fluids). A combined expansion tank and de-aerator that has been designed by Fulton allows nitrogen to be introduced to protect the thermal fluid from oxidisation, which means that the tank does not necessarily have to be situated at the highest point in the system. This is a particular advantage where plant room height is restricted or when a system is skid-mounted for a compact installation. Thermal fluid versus steam With Ian Halliwell’s recent appointment, Fulton now has its first dedicated thermal fluid specialist in the UK, which means the company is now better placed to offer customers an unbiased review of their heat transfer requirements and can compare thermal systems to conventional steam and electric alternatives. What is also essential is that Fulton’s new and existing customers are given the right advice, and Halliwell looks forward to ensuring that thermal fluid

systems are recognised as a viable alternative to other heat transfer systems for many applications. But, as Halliwell explains, at what point does thermal become the best or most cost-effective solution for a process? “The choice between adopting steam or thermal systems is determined by the requirements of the process and its temperature range. In general, if the process requires a temperature above 0°C and below 180°C, steam is usually the first choice. However, if the required process temperature is below 0°C or above 180°C, thermal fluid is often the better solution,” he says. He goes on to say that thermal systems, unlike steam, provide useable temperature with very little pressure, no flame, fewer regulations and lots of control. Thermal technology in action Fulton does have a track record of thermal heater installations in the UK and, for one recent application, one of its FT-C vertical coil thermal fluid heaters replaced a live steam system at Interfuse that was proving too expensive to operate. Interfuse manufactures precast masonry blocks, which are distributed throughout the country through builders’ merchants. The company’s plants are capable of

“

The thermal fluid system’s operating costs are about a tenth of those for the steam system, so we are expecting to achieve payback in three to four years

50 February/March 2015 | water energy & environment

producing about 21 million dense and lightweight blocks per year in a range of sizes; with solid, cellular and hollow formats; and with standard and close textured finishes. The manufacturing process for the building blocks uses a press to precast the products and a series of kilns to provide heat for rapid curing. At its Gainsborough site, Interfuse installed a Fulton FT-C heater to replace its live steam system. Commenting on the installation, Interfuse works manager Len Parks says: “Using live steam for the curing process at Gainsborough was costing the company in the region of £20,000 per month in fuel costs alone, so although the change to the Fulton FT-C thermal fluid boiler proved to be a significant investment, especially during the downturn in the building and construction market, the thermal fluid system’s operating costs are about a tenth of those for the steam system, so we are expecting to achieve payback in three to four years.” Highlighting other significant reasons for the change, Parks confirms that thermal fluid is much cleaner than the original steam installation and the maintenance costs are significantly lower because no annual strip-down is required. In addition, there are no associated costs for mains water, water softeners or chemicals to run the system, nor are there pressure regulations to adhere to. we&e fulton.co.uk

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CHP

Whitbread and Baxi Whitbread has been working on a trial with Baxi Commercial Division to understand the efficiency of a new fuel cell CHP technology, its efficiacy and potential savings of both carbon and energy

hitbread and Baxi Commercial are collaborating on a trial of fuel cell CHP technology. The two-year trial is seen as a vital step towards the wider adoption of fuel cells in the UK commercial heating industry. It is also the first UK-based trial under the European Union’s Ene.field scheme, which is contributing 40% of the costs. Baxi and Whitbread are jointly funding the balance. The Gamma Premio fuel cell, built in Germany by Baxi Innotech, is one of the first two appliances to be trialled under the Ene. field programme, which will eventually monitor 1,000 installations across Europe. The unit was installed in Whitbread’s Glastonbury Premier Inn, which opened in January 2013. It has high

The two-year trial is seen as a vital step towards the wider adoption of fuel cells in the UKcommercial heating industry

occupancy throughout the year so was seen as offering ideal trial conditions of high hot water demand – particularly in the morning and evening – amounting to about 3,000 litres per day. The fuel cell works by extracting hydrogen from the natural gas supply and converting it into water, heat and steam, all of which can be used to produce heat and electricity in a process that is almost 96% efficient and reduces the amount of fossil fuel needed to power the heating plant. At Glastonbury, the Baxi unit was installed between the cold mains supply and two existing Andrews Maxxflo condensing water heaters together with two buffer vessels. This arrangement means the fuel cell will provide approximately 20% of the total hot water demand of this busy hotel

Award win for Birmingham district energy scheme

irmingham District Energy Company has been named winner in the Public Sector category of the Combined Heat & Power Association (CHPA) Awards 2014. This is the latest national accolade for the scheme, which comes off the back of the milestone project currently under way to interconnect the existing Broad Street and Aston University district energy schemes via New Street Station. As such it

reflects both the success of the scheme so far and its continued expansion. The Birmingham District Energy Scheme was described by the judges as one of the strongest categories this year, while the work of the Partnership was cited as “the most important and impressive scheme in Britain today – serving the city’s residents, local businesses and public sector buildings”. Since 2006, a partnership between Cofely, Birmingham

52 February/March 2015 | water energy & environment

City Council, Aston University and Birmingham Children’s Hospital has been providing low carbon heat, electricity and chilled water to a range of buildings in Birmingham. More recently, as a result of a £4m investment by Cofely, a new CHP energy centre at the refurbished Birmingham New Street station is being joined to the scheme. This additional 1.6MW CHP engine will help further decarbonise the City and add extra resilience to the system.

The inherent efficiency of the scheme has played a key role in reducing energy costs while also reducing Birmingham’s environmental impact. For example, the scheme, including the new link at Birmingham New Street, is saving more than 15,600 tonnes of CO2 per annum and making a significant contribution towards the targets set by Birmingham’s Green Commission. Cofely’s Ben Watts commented: “This award

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trial fuel cell technology operating data, have led Baxi – about 700 litres per day. and Whitbread’s energy team The system has been to predict overall savings of configured to allow the fuel cell £16,890 over a 10-year operating to run 24 hours a day, which period with CO2 emissions will maximise its efficiency. It has its own 300-litre storage likely to be reduced by 5.8t/yr. cylinder, which is heated first, Heat meters have been before it moves on to supply installed on the mains and water the main system’s 500-litre supply and a gas meter is also pre-heat cylinder at continually recording 60°C. The “free” the level of fuel electricity consumption. produced is The electricity used within generation the plant is also being Hot water the fuel room to recorded and cell will provide run pumps contributes and other to the carbon the hotel during ancillary units reduction results. the trial further reducing The metering the carbon footprint enables engineers to of the building. make very accurate recordings Four engineers from and also analyse parasitic Baxi Innotech travelled losses in the secondary return from Germany to help with so they can build up a more the commissioning of the comprehensive picture of system, which has now the overall performance. been running for three Engineers at Baxi Innotech months and is showing are continually monitoring very promising results. the installation via a builtin internet link from their Analysis and predictions laboratory in Hamburg. As Pre-commissioning analysis of well as closely analysing the hotel and its hot water usage the performance, this also patterns, plus regularly updated allows them to alert Baxi’s

20%

is fantastic recognition for the positive partnership between the members of the scheme and the major benefits that it has delivered. “With the addition of the New Street energy centre we are able to make widerreaching connections across the city and extend the benefits of competitively priced, low carbon energy to many more users.” Councillor Lisa Trickett, Birmingham City Council cabinet member for a Green, Smart and Sustainable City and chair of Birmingham’s Green

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Commission, added: “The Commission launched its Carbon Roadmap one year ago to identify the key projects to help us achieve a carbon reduction target for the city of 60% by 2027. “The progress we have made since then is hugely encouraging and the BDEC partnership is one of our leading programmes. “I’m looking forward to seeing more buildings connect to the scheme to play their part in reducing the city’s carbon emissions and save money on their energy bills.” cofely.co.uk

“

This trial will allow us to make informed decisions based on our own experience in a fully operational hotel, which is so much more meaningful than lab-based testing service team in the UK to any potential maintenance issues. The Maxxflo water heaters and the fuel cell are being independently metered to allow the Whitbread team to make meaningful comparisons. The heat output from the fuel cell itself is directly recorded via a heat meter installed on the outlet from the 300-litre buffer vessel that monitors the temperature difference between the flow out of the buffer vessel and the return to the fuel cell. A second heat meter is also installed on the secondary DHW flow and return

reporting the system losses from the secondary circuit which allows the Innotech engineers to calculate thetotal system efficiency. A third heat meter measures the total energy needed to raise the cold feed to the DHW outlet so that the total energy used can be recorded. The electricity produced by the fuel cell is also being measured. At the end of the trial the fuel cell and buffer vessel will be decommissioned and returned to Baxi Innotech for evaluation. The original 500-litre storage vessel will remain in place. Whitbread can then decide if it wants to proceed with a permanent fuel cell installation or to replace it with another renewable technology. “We envisage a promising future for this technology,” says Property supply chain manager Mitesh Panikker. “The results so far are very encouraging. This trial will allow us to make informed decisions based on our own experience in a fully operational hotel, which is so much more meaningful than lab-based testing.” we&e baxi.co.uk

Left to right: Richard Rees, strategic energy officer, Birmingham City Council, and Sam Clarke, Midlands region business manager, Cofely District Energy

February/March 2015 | water energy & environment

compressed air

Furniture production polished up Bluespot Furniture is making significant energy cost savings thanks to a new compressed air system from Gardner Denver (CompAir) distributor Advanced Compressor Engineering (ACE Group)

luespot Furniture was established in 2001 and grew progressively as a result of increased product offerings in contract office furniture and student accommodation installations, resulting in operations spread across four separate units. This meant that the compressed air system had become fragmented, with air line systems added over time to accommodate the increase in demand as production grew. In mid 2013, the West Yorkshire company, which over time and was therefore manufacturers a range of not delivering the high levels commercial and residential of efficiency we required. furniture, took the decision Our machinery requires a to purchase a modern constant supply of air at 6.5 production unit in Dewsbury bar but, at the old site, to and consolidate its four units compensate for air losses in in to one facility. This gave the pipework and general it the perfect opportunity system inefficiencies, we had to carefully plan the layout upgraded the compressors of the production process. to operate at 10 bar. An important “In addition, we element of this was wanted the new the design of the facility to compressed maximise air system. productivity at Operations every stage of Saving achieved by director the process. Bluespot at its new Andrew Our existing Cooper compressors production unit explains: were sited “Compressed air at the point of is a key component use, meaning our in the efficient operation operatives had to wear of our production process. It mandatory hearing protection is used extensively across the – something we were keen factory, providing processing to overcome to help improve air for each stage in the working environment.” manufacture including panel Working closely with ACE cutting, edging and drilling. Group, Bluespot was able “Although our existing to specify a brand new air compressed air supply system. This comprised a new provided the volumes and compressor house located quality of air that our process outside of the main production required, it had been added to area, sized to suit its current

30%

54 February/March 2015 | water energy & environment

“

Compressors were running continuously rather than adapting to changes in production demand air requirements but able to meet additional demand as part of its plans for business development for the future. ACE installed new aluminium, full bore pipework, which is both lightweight and highly efficient, helping to reduce pressure losses significantly. ACE cut the number of compressors from six fragmented units to an integrated package of three comprising two CompAir L37 fixed-speed compressors, which are rotated to provide the base load, and one L37RS speed-regulated unit, which comes online to meet peaks in demand. This has reduced the air pressure from 10 bar to 7 bar.. ACE group sales director Andy Crone explains how

the new system has been optimised to save energy: “The previous system was energy-intensive as the compressors were running continuously rather than adapting to changes in production demand. “We recommended a combination of fixed and speed-regulated units to meet peaks and troughs in air demand. “We loaned the company a compressor during the early stages of the move, which we monitored over a period of time to access site air demand and to help identify where savings could be realised. Data logging of air usage was conducted by ACE to monitor the air usage in the new factory prior to final confirmation of new compressor specifications. “The resulting installation is controlled by the CompAir SmartAir Master compressed air management system to help even out compressor running hours and continually provide the most cost-efficient means of generating air.” A high-efficiency refrigerant dryer with pre and post filters provides clean, dry air throughout the network and a single air receiver tank was also specified in place of a number of tanks at the previous facilities, helping to reduce maintenance requirements significantly. Cooper concludes: “Our new compressor system has exceeded our expectations in terms of energy efficiency and one year on, we are realising savings in excess of 30%.” we&e compair.co.uk

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coMpressed air

Mattei in gas compressor move Mattei has launched a new range of gas compressors for the UK market, suitable for a variety of applications from pumping gas and landfill gas compression to micro power generation

attei has modified the air end of its proven compression technology to create an innovative new gas compressor that can be used to compress a variety of gases, including natural gas (methane) and bio gas. Each compressor features a sealed intake designed to accept gas from a pipeline source, and stainless steel components have replaced those made from copper and brass to prevent internal corrosion due to the chemical make-up of the gas. In addition, external pressure adjustment has been added to allow pressure selection without disconnecting pipework. To ensure efficient operation, the new compressors also feature a specialist lubricant, which has been developed through extensive trials to be

able to withstand the chemical make-up of a range of gases. Additional probes have been included in the new design to monitor the temperature of the end cover bushes and compressed gas, and a vacuum sensor in the intake will stop the compressor should there be a restriction in the gas. Bleed points are strategically placed to facilitate purging of

the air with gas on start up. This ensures the compressor is full of gas and avoids the potential of an explosive mixture of gas and air being inside the compressor. The comprehensive gas compressor range starts at 4kW and goes up to 55kW, with pressures from 6 bar to 13 bar. The products have been designed to fit any IEC

or Nema flange XN spark free electric motor, hydraulic motor or PTO drive system. Mattei’s 55kW compressors are suitable for use on landfill sites, compressing methane gas. Mattei has already successfully sold many of these compressors as part of fully enclosed gas compressor packages. Similarly, Mattei’s smaller gas compressors can be used by power generation companies for load lopping (using compressed mains gas to fuel large gas engines that drive electrical generators to top up the grid in times of peak demand or power outages). The small versatile Mattei gas compressors are also used to supply gas to localised micro generators, used in buildings with a constant demand for electricity such as office blocks and leisure centres. we&e mattei.co.uk

Expanded production supported by compressors Steelite International, the UK’s largest ceramic tableware producer, has installed two more Atlas Copco compressors at its Stoke-on-Trent site to meet increased demand for production plant air. It needed additional compressed air capacity following the construction of its new Dish Cell building, which has added 22,000sq ft of production space to the site. A new Atlas Copco system has been installed, comprising two full-feature, rotary screw compressors, a fixed-speed GA 90 FF, plus a GA110 VSD FF.

Steelite’s manufacturing project manager, John Lewis, explains: “These two units, together with a receiver and filter, are located in a new dedicated compressor house that is nearing completion. Their principal duty is to drive 12 three-inch and two-inch diaphragm pumps and the pneumatic cylinders for our new production equipment. The fixed speed machine provides the base load while the VSD compressor matches output to variable process air demands and is also available for back-up supply if required.” atlascopco.co.uk

56 February/March 2015 | water energy & environment

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VSD+ - NOT JUST AN EVOLUTION, IT’S A COMPLETE REVOLUTION. The new VSD+ changes the way you look at compressors. With up to 50% energy savings, noise levels down to 62 dB(A) and a 12% leap in free air delivery. A vertical design format that shrinks its footprint and a unique, patented permanent magnet motor. It’s enough to turn your world upside down. Atlas Copco Compressors Phone: 0800 181085 Email: compressor.sales@uk.atlascopco.com Web: www.atlascopco.com/gavsdplus

ViewpoinT

ESOS a focus for UKAEE in 2015 The UK chapter of the AEE is restructuring and looking towards helping energy professionals understand ESOS for one, says UKAEE president Rajvant Nijjhar

he UK Chapter of the Association of Energy Engineers (UKAEE) held its second AGM on 19 January in Birmingham. The AGM was combined with a CPD on the ESOS by Ian Boylan, AEE Western European director, and a talk by transport expert, Chris Endacott on transport energy audits. The event was informative and well attended. At the AGM, the new UK AEE committee was also elected and we are pleased to inform you of the committee as follows: • president – Rajvant Nijjhar • vice-president – Raymond Yeng • secretary – Dave Thomas • treasurer – Eunice Mabey • web and media – Funsho Alo • events coordinator – John Haddow • technical editor – Paul Spencer • training and qualifications – Amita Mehta • regional coordinators: Neil Kimpton, Andy Clarke and Graham Richards • membership development – Yassen Roussev The committee has doubled in size and we look forward to bringing you many events this year. The committee would also like to thank outgoing secretary Vilnis Vesma for his hard work in the past few years in helping set up and coordinate many aspects for the UKAEE. The first of the events that we organised this year was a seminar on 2 March on transport energy audits. This aimed to help those undertaking ESOS

“

A seminar on transport energy audits is to help those undertaking ESOS audits understand the opportunities that can avail in the little known area of transport

energy audits, understand the opportunities that can avail in the little known area of transport. Details can be found on our new website at ukaee.org.uk/ event/effective-transportenergy-audits-for-esos. This is likely to be repeated in June, so if you did not make it and would like to know more, please express your interest by emailing secretary@ukaee.org. Also in the pipeline is an event on “ESOS in practice” to be hosted by UKAEE in conjunction with Resource Efficient Wales on 27 March. The half day event will

focus on what ESOS is, a practical example of analysing data and determining your 90% energy consumption will be provided while then looking for opportunities within your significant energy uses. The event will be a mix of theory and group workshops. See box for details. For those that are unaware, the Association of Energy Engineers’ CEA and CEM courses are both routes to becoming an ESOS lead assessor. If you would like to know more about these courses, then please contact rajvant@ivees.co.uk or secretary@ukaee.org. we&e

eSoS in practice Date: 27th March Arrival time: 1pm (close 5pm, networking in Hotel bar afterwards) Location: The Village Hotel, 29 Pendwyallt Road, Coryton, Cardiff, off Junction 32 on the M4 Cost: The event is free to attend for those based in Wales. For those based outside Wales, and subject to availability, a nominal fee of £15 will be charged. Anyone interested in attending should email secretary@ukaee.org in the first instance

Chris endacott addresses the UKAee AGM

58 February/March 2015 | water energy & environment

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VolTAGe opTiMiSATion

A virtuous system Powerstar has launched Powerstar Virtue, a technology that takes the savings from the voltage optimisation unit and charges a storage medium for use later

UK manufactured solution from EMSc (UK), Powerstar Virtue is an energy storage system and a result of the company’s research and development programme. It is the latest addition in the Powerstar range of solutions. Powerstar Virtue uses the patented Powerstar voltage optimisation technology and harnesses the induced negative power feedback to the supply, to charge a storage medium. The energy savings made from the voltage optimisation system are diverted into the Powerstar Virtue energy storage system, which can be used at the most beneficial time to the electricity user. The solution can be integrated with onsite renewable energy generation to combine the energy saved from the voltage optimisation system with that generated from the renewable energy source. As a result, users can save by switching to the stored supply at any time they wish, as well as ensuring a constant and reliable energy supply. As predicting times of peak demand is a relatively simple task, Powerstar Virtue also has the capability of becoming a virtual power station, eliminating the risk of network interruption, in turn guaranteeing stable, reliable power generation at all times. The system is also capable of becoming a full facility uninterrupted power supply for up to two hours. There is a growing requirement globally for energy storage solutions as energy grids around are

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Dr Alex Mardapittas (left) with David Blunkett, Mp for Sheffield Brightside and Hillsborough and Angela Smith, Mp for penistone and Stocksbridge, at the launch of power Virtue at powerstar’s site in Sheffield

struggling to cope with the surge in demand for electricity, which causes increased supply instability. This increase in demand requires more cabling and pylons to support usage, a cost that is ultimately passed onto electricity users. Speaking about the new Powerstar Virtue system, creator Dr Alex Mardapittas said: “Energy storage is recognised in many studies as an important solution to address the growing energy problems, as it allows energy generated during periods of low demand to be stored locally and used at peak times.” Dr Mardapittas added: “Powerstar Virtue takes this one step further, by allowing energy saved from voltage optimisation technology to be diverted into storage, along with combining energy generated from onsite renewables, when available, the solution gives the user greater reliability, unprecedented control over their own supply and makes renewable energy reliable.”

“

The solution gives the user greater reliability, unprecedented control over their own supply and makes renewable energy reliable

Additional benefits of Powerstar Virtue include eliminating the use of inverters on renewable installations, this can help to reduce costs of renewable installations and improve return on investment. Sites will also benefit from reduced harmonics, voltage phase balancing and improved power factor along with reduced maintenance costs of electrical equipment and a 100% savings guarantee, as offered with all Powerstar voltage optimisation solutions. This solution is expected to attract huge interest from the commercial sector attracted by the significant savings, flexibility and reliability provided by the new Powerstar Virtue. Grid operators and utility companies will also benefit from being able to provide a more efficient and effective electrical network with increased stability and no interruptions. we&e powerstar.com See Powerstar at Nemex 2015 on stand L20

February/March 2015 | water energy & environment

SuStainability live

Revamped SusLive returns Sustainability Live – incorporating NEMEX and Energy Recovery – returns to the NEC Birmingham from 21 to 23 April

ith more than 100 expert speakers across four conference theatres, plus the latest technologies and solutions from all the leading suppliers, this year’s Sustainability Live is a must attend event for energy and sustainability management professionals, both those in senior strategic roles and their operational teams. Practical workshops and seminars The Sustainability Live CPD workshops and seminars are a three-day programme of free sessions designed to help sustainability professionals operate more efficiently – and gain CPD points. These sessions will offer practical advice covering energy procurement, energy management and efficiency, and environmental management. The Energy Efficiency Theatre 1, which focuses on people, policy, processes and best practice, will tackle a range of upcoming industry challenges and opportunities, including ‘Achieving best value from ESOS’ and ‘Implementing Environmental Management Systems – preparing for revisions to ISO 14001’. Other sessions will include ‘The Energy Efficiency Road Map’, which covers key challenges, business imperatives and opportunities for energy managers for the coming year, and ‘Changing behaviour by changing capability’, which focuses on successful change management through education, training and skills.

The programme for Energy Efficiency Theatre 2, which highlights developments in technology, tools and kit, will cover how to cut bills with CHP and the implications of BIM for facility management professionals. Other valuable sessions include ‘Delivering cost and carbon savings with low-energy lighting systems’ and ‘Sustainable Transport Strategies’. Finally, the Energy Recovery Theatre will offer a packed programme, focusing on the latest technologies for driving onsite energy generation. Sessions include the ‘Energy Recovery technology pitch’, where four innovative organisations pitch their latest game-changing technologies in a quick-fire format session. On the show floor Operational teams can also make the most of this year’s exhibition, which features the latest innovations in energy and resource management, alongside the industry leading energy recovery technologies and services. Four new Topic Trails will help visitors maximise their time at the exhibition. The trails will provide a

60 February/March 2015 | water energy & environment

useful guide around the show floor, matching visitors with exhibitors offering the most relevant solutions that address their specific challenges and concerns. The Topic Trails for 2015 include ESOS, energy-efficient buildings, energy generation and smarter systems. Finally the Innovation Zone is another new show feature for 2015. Showcasing 16 emerging technologies in the trial stages of development, it’s the ideal chance to learn about the latest emerging technologies and what benefits they could offer businesses in the future. Strategic level thinking New in 2015, the Sustainability Live Conference is a three-day, premium ticketed conference bringing together the business and policy leaders who are finding new ways of building resilience into organisational models, and reaping the benefits. The conference will address the strategic needs of senior level delegates and places are strictly limited for qualifying personnel. Confirmed speakers include experts from leading brands and institutions, including

Sainsbury’s, Carlsberg, Marks & Spencer, B&Q and the University of Cambridge, as well as forecasting and innovation expert Professor James Woudhuysen and BBC business and economics journalist Simon Jack. Highlight sessions include ‘Beyond compliance’. a panel debate exploring how EU policy will affect the landscape, what role ESOS and ISO 50001 will have, and what does beyond bestpractice look like? Chaired by John Mulholland, founder and director of Mulholland Energy Solutions, speakers include Jo Scully, ESOS project manager for the Environment Agency, Colin Hawthorne, energy manager for Jaguar Land Rover, and Matt Sexton, director of corporate social responsibility for B&Q Other panel sessions include ‘Energy – the bottom line: use less, make your own, buy smarter’, which addresses the three main routes to energy cost reduction: using less; onsite generation; and smarter procurement strategies. Speakers include Gio Patellaro, head of energy supply and risk for M&S; and Paul Crewe, head of sustainability, energy and engineering, for Sainsbury’s, while Mervyn Bowden, managing director of Intuitive Energy Solutions, will chair the session. Sustainability Live will also be co-located with Utility Week Live incorporating IWEX, offering information dedicated to the business, operational and technical needs of the UK’s water, electricity and gas utilities. we&e sustainabilitylive.com

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How long before your supermarket sells you your water? Energy Managers Association CEO Lord Redesdale believes water performance contracting could be the key to unlocking savings in the soon to be deregulated market

he passing of the Water Act 2014 was hardly noticed by the great British public. Clauses in the act allow for the introduction of water competition in water retail. This hardly seems to have caused a ripple in a way water is to be sold. Or will it? The common belief that water will be sold at a wholesale price at a tiny margin to retailers who will then excite customers with miniscule savings gave the impression that this would be a very limited and boring marketplace. However, if a different model is successful water retail could be even more red and tooth and claw than the gas and electricity market. How should water be sold? The answer is simple: competition should be based on volume, not price. If one company agrees a contract to make significant savings in the amount of water used by the host company and agrees also to split the profits on the savings, then very attractive profit margins could be made. Water is a very cheap resource but two points make this model work. The first point is that Britain is remarkably wasteful with clean drinking water, which other countries would see as a valuable resource. The second point is that water will probably not be as cheap in the future. To provide water at pressure uses a great deal of energy, and as energy prices rise so will water prices. How big is this potential

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The very basis of a water performance contract is collecting and understanding the data. Big data will allow companies to manage water from the water meter through to every tap and toilet in the building

62 February/March 2015 | water energy & environment

marketplace? If water performance contracts are successful they should save more than 20% of present water usage. In the case of a hospital, saving 20% of the water used from a benchmark point would be a significant saving. The amount would be large enough under public sector procurement rules to mean that the hospital would have to go out to competition. In effect, the whole of the public sector will need to tender water contracts. This would not be the case if the contract was based on retail price of water, and therefore to make this work a whole industry based on water metering and water efficient kit will need to be put in place. Who will provide this service? Many of the water companies have retail arms. However, do they have the capacity or the capability of winning hundreds of thousands business customers? The answer may well be that such a large marketplace will attract number of players. Facility management companies will almost be forced into this marketplace. If they do not

offer water services, they may lose an important element of their own service contract, being undertaken by their competitor. Energy utilities and brokering companies will almost certainly produce offerings of their own. Water retail is about to became a deregulated marketplace from 2017. This will be an unregulated marketplace. Considering the mis-selling that has taken place in the electricity and gas sector, the Energy Managers Association has formed the Utilities Compliance Assurance Body (UCAB), a membership organisation that will inform customers which companies are following UCABâ&#x20AC;&#x2122;s Code of Conduct. UCAB will also be setting guidelines on the use of data and meters to drive metering in the water sector. Water performance contracting could be the basis of a smart water grid. The very basis of a water performance contract is collecting and understanding the data. Big data will allow companies to manage water from the water meter through to every tap and toilet in the building. Saving water will not only be seen, quite rightly, as a way of making companies sustainable but a way of making companies financially sustainable as well. 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 ÂŁ3bn

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Water ManageMent

On the right ‘Flygt’ path When the Civil Aviation Authority advised Heathrow Airport that it needed to reduce its passenger levy, the water services division looked at how it could incorporate more energy efficient measures into the airport’s pumping system to reduce costs

eathrow Airport is one of the world’s busiest, with more than 72 million people travelling through its terminals in 2013 alone, says Ian Jolly, head of the water services division at Heathrow Airport. “One of the biggest issues we face regarding the transfer of foul water from the airport is gravity. Airports are built on extremely flat land, for obvious reasons, which can make the pumping of water difficult and highly energy consuming.” Due to sewers at Heathrow operating independently, surface water and foul are unable to mix, meaning the airport receives no flushing water from rain. To combat this, the airport exterior has more than 100 foul water pumping stations to cater for the 80 litres of water discharged to the sewage treatment works every second. These range from small packaged pumping stations to large multi-pump installations with a combined holding capacity of 2,500m3.

Cost reductions “The CAA advised that we would need to reduce our passenger levy from £22 to £19, meaning Heathrow Airport needed to cut costs by more than £600m over a fiveyear period. All departments were instructed to look at areas where cost reductions could be made and, for the water services division, we targeted our pumping system as a means to reduce energy consumption through energy efficiency and better procurement of equipment.”

Intelligent Pump Controllers that accompanied the Flygt ‘N’ pumps enabled Heathrow’s Water Services Division to immediately monitor the specific energy use of the pumps during their normal pumping cycle. They work Reduction in pump by reducing a station’s energy pump’s speed on uncommon every pump cycle to find that consumption until the minimum the smaller specific energy applications, is found. The pump particularly controllers then continually ones that are dealing adjust the pump speed to with vast amounts of water ensure that the minimum like Heathrow, don’t have specific energy available for that sufficient torque in the motors site is being used for all pump for the impeller to turn and cycles throughout the year. pull the solids through. Twenty months on from “There is the option of the installation, Heathrow has installing a larger motor in the witnessed some impressive pump, but this isn’t an ideal results. “The pumps in the solution as this increases energy cargo holding area have settled consumption. Instead, we look into running at their optimum at the hydraulics to make the efficiency of 30-33Hz, cutting pump better at handling solids the energy consumption of the or large raggy material.” pump station by around 50%, with the drives adapting into Innovative technology the new panels, equating to a He continues: “Flygt’s saving of more than £12,000. innovative adaptive hydraulic “Additionally, the SmartRun technology incorporates a Intelligent Pump Controllers swept back leading edge on have reduced maintenance the impeller, which results in call out incidents to zero, with sustained improved efficiency pump blockages virtually over the pump lifespan. This eliminated. Previously, in the means that should a very same 20-month time frame, large solid present itself, the the wet well would have been impeller will rise up the pump fully cleaned three times due to shaft to allow the solid to over-filling. This helped the site pass before returning to its see a reduction in energy from normal position. As a result, 6MWh/annum to 4.1MWh/ the number of soft blockages annum in addition to saving is significantly reduced, more than £1,600 per year allowing for a more reliable and in maintenance costs just on consistent performance, and this one wet well.” we&e fewer maintenance call outs. xylemwatersolutions.com/scs/uk The two SmartRun

50%

Following investigations into the airport’s operational requirements and available solutions in the marketplace, Heathrow’s Water Services Division commissioned Xylem Water Solutions UK to undertake a trial on the cargo area of Terminal 4, which itself has 10 foul water pumping stations and a further four storm water stations. “I recommended the use of our Flygt Experior range,” says Tony Price, market development manager at Xylem Water Solutions UK. “The Flygt Experior range consists of a smart pump controller, high efficiency motor and adaptive hydraulics. All these factors work interactively with each other to deliver the lowest cost of ownership for foul pumping stations, making the range the ideal solution for Heathrow.” Price and his engineering colleagues from Xylem installed two of its Flygt Experior Adaptive ‘N’ submersible sewage pumps and two SmartRun Intelligent Pump Controllers in the cargo area’s sewage wet well in just under six hours. Price continues: “One of the main benefits of the Flygt range to Heathrow Airport is its use of adaptive hydraulics. It is not

64 February/March 2015 | water energy & environment

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RENEWABLE ENERGY

£400m loophole for wind farms

Practice of ‘derating’ could damage Britain’s clean energy market, warns think tank IPPR

loophole in the government’s Feed-in Tariff (FiT) scheme is making billpayers pay subsidies to unnecessarily large wind turbines that deliberately limit their output, according to a new report published by Institute for Public Policy Research (IPPR). The practice, which is known as “derating”, enables companies to take advantage of more generous subsidies available for smallscale wind farm projects. These “excess subsidies” for derated turbines could commit billpayers to paying more than £400m that would otherwise be spent generating more clean energy. The report shows that if the loophole was closed, Britain would benefit from more clean energy. The Feed-In Tariff is supposed to deliver value for money by ensuring that investors in wind energy projects receive a reasonable rate of return of about 5-8%. IPPR modelling suggests investors in derated projects are receiving as much as 25%. The report shows that closing the loophole would be straightforward and recommends:

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make significantly higher profits. (This is known as “excessive derating”). The Feed-in Tariff band for wind turbines that generate 100-500kW of electricity currently pays out 13.34p per kilowatt hour (kWh) of power generated. For the higher band of 500-1,500kW the owners receive a less generous tariff of 7.24p/kWh. The use of this loophole is now widespread among small wind energy projects involving one or two turbines.

Britain would benefit from more clean energy if the loophole was closed, says the IPPR • In the short term: introducing a cap on the size of the rotor for any wind turbine looking to qualify for the more generous tariff band. • In the medium term: a policy solution that incentivises the “best fit” turbine for each site – allowing there to be an overall cap on subsidy available for each wind project. • Introducing another band into the Feed-in Tariff for onshore wind projects. Joss Garman, IPPR senior research fellow, said: “This loophole is short-changing bill payers to the tune of millions of pounds a year. Ministers should act immediately to close down what is becoming a ‘feed-in frenzy’. It is distorting the energy market, lining the pockets of investors and undermining public confidence in Britain’s vital clean energy sector.” Charles Ogilvie, energy

consultant and co-author, added: “The Feed-in Tariff should be driving innovation to create a sustainable, broad base of renewable energy for the UK. By leaving loopholes like this open for so long, the government is effectively squandering support for the innovators and entrepreneurs who play by the rules.” How does the loophole work? The amount of subsidy for a small wind project is determined by the maximum potential output of electricity from the turbines at the site in question. These ratings are not based on any independent scrutiny and are declared by the installer of the machinery. This lack of scrutiny means that wind turbine project developers are labelling their larger machines as being a lower capacity than they really are. This enables these projects to access a higher tariff so the developers are able to

How much is the loophole costing billpayers? A derated turbine will receive about £100,000 in “excess subsidies” each year*. Over the 20-year lifetime of a scheme billpayers are liable for around £2m in excess subsidy payments (in current prices) for each derated turbine. If the loophole was closed today billpayers would already be committed to £175m in excess subsidies over the lifetime of these projects for derated turbines deployed up to September 2014. A further £195.6m in excess subsidies could be committed to by the government in 2015. Including the cost of excess payments for turbines installed in the final quarter of 2014, this brings the total to £230m. This means if the loophole remains unchecked through to the end of 2015 the potential cost could total more than £400m over the lifetime of all derated turbine projects. we&e ippr.org * Even taking account of the potential for the digression mechanism to lower the level of subsidy in the future the estimate is still £100,000

February/March 2015 | water energy & environment

Products reduce cooling costs by 90% With more than 3,000 installations worldwide, UK-based EcoCooling can claim to be an innovator in low-energy, direct evaporative cooling and ventilation technologies. The firm says clients such as TKMaxx, Matalan and Cummins Diesel verify that claim. EcoCooling has developed energy-efficient cooling solutions to suit all types of buildings including data centres, comms rooms, industrial, retail and commercial. Because its technology uses up to 90% less energy than traditional cooling methods, it can also help businesses deliver CRC objectives. Some 15,000m2 of warehousing provides a manufacturing and R&D facility, as well as a storage base for all spares and coolers. This ensures that short lead times and adequate supply of spares are guaranteed. EcoCooling provides energy efficient and low-carbon alternatives to air conditioning by taking the concept of direct evaporative cooling and re-engineering it. The result is a sophisticated cooling and ventilation system

that can outperform the alternatives on most counts, says the firm. Each EcoCooling system uses fresh air to provide a mixture of ventilation, evaporative cooling and attemperation (the automatic mixing of hot and cold air) to maintain the required environment inside a building. One EcoCooler can provide 3m3 of cooling for less than 14p per hour. Energy use can further be reduced by the use of EC fans in IT environments. EcoCoolers can either be used for the

temperature and humidity measurement With the latest model in its RTR-500 series, T&D Corporation – the Japanese market leader for data loggers – introduces a new device to monitor, safeguard and record measurements matched to the needs and environment of the user. The RTR-507/507L enables wide-range, high-precision measurement of humidity from 0 to 99% relative humidity (RH) with an accuracy of ±2.5%, as well as wide-range measurement of temperatures from - 30°C to 80°C with an accuracy of ±0.3°C. The RTR-507L model is offering a large capacity battery type with an extended battery life up to four years. When connected to a network, the recorded data can be collected, monitored and documented via PC. Also the setup of warning reports is feasible. Thanks to T&D’s cloud-based WebStorage Service, access to logged data is possible at any time from anywhere via internet and mobile phone, and with arbitrary browsers. This service is provided free of charge to all clients and offers a storage capacity of up to 20MB on a central server. The user-friendly WebStorage Service viewer app for smart phones and tablets ensures easy access to stored data at all times. Their high precision and wide range measurement facility combined with their flexibility and safety make data logger systems perfectly suited to use in industrial or public areas. In facilities, ideal temperature and humidity values can be kept with ease. Besides climatic comfort, this aids working towards considerable savings of energy and costs. In factories and production lines, during transport or distribution, data loggers can help users to maintain quality and hygiene standards and fulfil obligatory documentation requirements. tandd.de

66 February/March 2015 | water energy & environment

blanket cooling of a building or for spot cooling of workstations and production lines. The firm says the system is perfect for factories, warehouses and mezzanine floors. The EcoCooling CREC (computer room evaporative cooler) is a low energy, fresh air system that uses a combination of ventilation, evaporative cooling and highly efficient EC fans to provide ASHRAE compliant conditions in data centres, irrelevant of load. Unlike free cooling, now used by many refrigeration systems, the CREC system uses the outside air all year round by using the heat from the data centre itself to heat the incoming air when it is cold outside and conversely cool the air by low energy evaporative cooling when the outside temperature is too high. Direct evaporative cooling can take full advantage of free cooling up to temperatures equal to the desired supply temperature. This, says the firm, allows huge energy savings to be made since most of the time the only energy required is to run the fan. ecocooling.org

transformer rules change in July

From July, any transformer put into service must comply with strict minimum energy efficiency requirements. Bowers Electrical says its new Ecodesign transformer was designed in conjunction with the standards bodies producing the new harmonised transformer standards under EU legislation. The new legislation (EU 548/2014) is part of the EU’s 20-20-20 aim to achieve a 20% reduction in the consumption of primary energy by 2020 by reducing CO2 emissions, increasing the use of renewables and improving energy efficiency. “The new directive could result in savings of approximately 16TWh a year – or a staggering 3.7 million tonnes of CO2 emissions – by 2020,” says Bowers managing director Michael Bowers. “Transformers like ours can make a real difference to the EU’s energy consumption and we’re very excited to be leading the field in terms of new technology.” Bowers Electrical will show the Ecodesign range at the Sustainability Live exhibition (21-23 April, Birmingham NEC). Visit stand L1 or email enquiries@bowerselec.co.uk for more information. bowerselec.co.uk

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optimsed HVAc controller Schneider Electric has introduced Modicon M171 optimised, a solution package for HVAC and pumping applications, with an emphasis on building automation. This family of controllers, consisting of several different versions, is designed for simple to moderately complex applications. These can be supplemented with expansion options and a wide range of instrumentation accessories to create complete solutions. With Modicon M171 optimised, flexible and scalable complete automation solutions can be designed for HVAC and pumping applications, the latter focused on booster solutions for building technology. The controller family includes DIN rail-mounted versions with and without integrated displays and keypad, as well as a flushmounted version for mounting in cabinets or panels. The portfolio also includes remote LED or LCD displays for “blind” DIN rail-mounted versions of the controller. In addition to the previously mentioned thermostats with a display unit (with or without background lighting) for wall mounting, the Modicon M171 portfolio includes a broad assortment of temperature, humidity and pressure sensors in different designs, as well as electronic expansion valve drivers. Schneider Electric’s broad offering of products and solutions for energy distribution and management provides a framework for developing complete automation solutions. SoMachine HVAC is a tool for the complete engineering of a Modicon M171-based automation solution. The core of this tool is the programme editor, which can be used to create IEC 61131-3-compliant programmes in all the programming languages used by this standard. The tool can also configure and commission the final automation solution. schneider-electric.com

LG in partnership with rexel Energy solutions Renewables company LG has announced a partnership with energy products and renewable solutions distributor Rexel Energy Solutions. The new partnership will see Dagenham-based Rexel offering the benefits of the LG Therma V air source heat pump range to its client base. Rexel is a major player, operating in 38 countries with 2,300 branches and about 30,000 employees. The businesses sales in 2013 topped €13bn. Head of Rexel Energy Solutions Steve Everard says: “We work with customers in the industrial, residential and commercial sectors and we’re dedicated to offering innovative solutions to improve comfort, performance and energy efficiency. Working with LG here in the UK will add significantly to the solutions we can offer.” The LG Therma V heat pump range offers all-in-one units with key components factory fitted to reduce installation and commissioning time. The units come with extended warranties – up to five years – and features low vibration and noise when compared with competitive equipment. They can be used as standalone units for new build or renovation projects or as part of a heating and hot water solution linked to a solar thermal system. In addition, they can be incorporated as part of a hybrid heating system with a traditional gas or oil-fired boiler offering back-up support. partner.lge.com/uk

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Packaged heating and cooling unit Reznor, the UK supplier of gas-fired warm air heating and ventilation systems, has launched its first packaged HVAC unit. The P125 provides heating, cooling and ventilation for commercial and industrial applications. This product combines many energy-saving features including modulating heating and cooling to provide accurate and proportional temperature control, variable speed fans to balance and control the airflow, along with heat recovery options with high efficiency thermal wheel and dehumidifying pumps. The P125 has the ability to provide solutions for between 0 and 100% fresh air; model YDMA, 70% and 100%; YDHA 30, 3% and 70%; and model YDSA 0 and 30% fresh air. The units offer free cooling using fresh air to reduce energy consumption by the compressors and feature a digital scroll compressor with 10% to 100% capacity control to reduce running costs and provide accurate temperature control. There is also a variable air volume (standard) plug fan technology on all models, which reduces fan power for demand control ventilation. A high efficiency integrated energy recovery (thermal) wheel is available on all models along with 10 to 100% gas modulation for close temperature control and reduced heating costs. The product also features a reheat pump option for superior part load performance. reznor.co.uk

esight launches energy services division eSight Energy has announced the launch of a new energy services division. The company is known for its software that offers customers the ability to record, analyse and report on all aspects of energy usage. The new service offerings – eSight Consult and eSight GO – extends eSight Energy’s capabilities beyond software to provide customers with a complete energy management solution. As part of eSight Consult, the eSight energy services team will deliver energy surveys, audits, metering surveys, consultancy and training to help organisations maximise energy efficiency and performance. Using an approach based on the ISO 50001 standard, eSight Energy provides services to take customers through the measurement, analysis, improvement and maintenance of their energy consumption. For customers using eSight software as a tool to monitor and manage energy data, eSight GO provides a range of configuration services to ensure users are able to use the system to its full potential. Support including hosting, system configuration, report development, as well as contract and report configuration, will ensure eSight systems are set up and tailored to customer needs quickly and effectively, allowing users to fully capitalise on the power of the platform. The eSight Services team is headed by principal energy consultant Allan Balata, a qualified chartered chemical engineer with 10 years’ experience in the industry. He says: “I am am excited to be providing services that will allow us to go even further for our customers, taking them through the complete energy management journey and helping them to achieve and sustain savings.“ esightenergy.com/uk/services

February/March 2015 | water energy & environment

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HUMIDITY, TEMPERATURE & CO2 MEASUREMENT

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February/March 2015 | water energy & environment

Q&A

Dave Cockshott Inenco Group’s chief commercial officer talks about incompetance, far-flung holidays and mind reading, and wonders just where the energy came from for the Big Bang

f you could travel back in time to a period in history, what would it be and why? I’d travel back to medieval times for a stint as a jousting knight. Galloping down a hill on my trusty steed would be a little different to my daily commute, and I dare say the adrenalin rush would probably beat it too. Who or what are you enjoying listening to (music, radio etc)? I’m a big fan of audio books and get through dozens on my iPad while travelling. I did go through a stint of listening to business books but have since switched to more light hearted titles – an hour of the Chimp Paradox after a long day of meetings isn’t really the best way to wind down. What unsolved mystery would you like the answers to? I’d like a definitive answer to where energy first began. Where did the energy come from that fuelled the Big Bang? Failing that, I’d appreciate an explanation of how Labour’s price freeze might possibly work in practice. What would you take to a desert island and why? I’d need something to keep my sweet tooth satisfied, so a large supply of Liquorice Allsorts and Haribo would be high up the list. I’d also take along a Tempur mattress and a good pillow if they would fit on the raft – if

budget to blow, I’d do it in style with a private jet and courtside seats at every game. What’s your greatest extravagance? Probably holidays – Iike many with a busy job, I think it’s important to switch off and enjoy some quality family time, and where better than a beautiful beach in a far-flung location? you’ve had a decent night’s sleep you can face anything. What’s your favourite film? My favourite film has got to be A Few Good Men, if only for Jack Nicholas’ infamous line “You can’t handle the truth…” If you could perpetuate a myth about yourself, what would it be? I’m forever having to correct people who think I hold the world record for endurance marathons. What would your superpower be and why? Reading people’s minds – not just to understand what they’re thinking at that moment but to understand what shapes their thoughts and why. Harnessing the power of the human mind might be the ultimate superpower. What would you do with a million pounds? I’d splash out on a roundthe-world trip to take in all the big sporting events – the Wimbledon final, a test match in Australia, the Monaco Grand Prix, a big Yankees game and the LA Lakers – and with that

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difficult decisions to be made. What irritates you the most? We all make mistakes but I do find incompetence incredibly frustrating. Mistakes are there to learn from, not repeat again and again.

If you were blessed with any talent, what would your dream job be and why? I’d be a professional basketball player. As a young boy I trialled for England but didn’t quite make it. In my “shoulda-woulda-coulda” moments I do wonder what might have happened if I’d been pushed a little harder?

What should energy users be doing to help themselves in the current climate? I’ve been banging this drum for a long time but it’s important to be strategic and not to get complacent. Prices might have been relatively stable in recent months but we all know that rising non-commodity prices are just around the corner, and energy users need to take a long-term approach to cut consumption and protect themselves from increased costs.

What is the best piece of advice you’ve ever been given? As a teenager my basketball coach told me that I was too nice, and I needed to toughen up. It’s a lesson I’ve carried with me and applied it in business – the importance of treating people fairly and with respect can’t be over-emphasised, but you also can’t please everyone, especially when there’s

What’s the best thing – work wise – that you did recently? Returning to Inenco as chief commercial officer, almost two decades after I began my energy career here as an account manager. Business energy is at such a critical junction and I’m excited to be able to play my part in helping customers to create an integrated energy strategy for the future. we&e

A Few Good Men: “You can’t handle the truth…”

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New features for pressure sensor The popular PN pressure sensor now features larger display in 2 colours for enhanced visibility of operating condition and output status. Setting is now easier and the unit can be rotated after fitting.

www.ifm.com/uk/pn www.ifm.com/uk/ pn ifm Telephone 020 8213 2222

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