Water, Energy & Environment

June/ July 2014 Issue 92 theenergyst.com

Efficient control of utilities and facilities

striking the right balance

How SmartestEnergy is helping energy buyers successfully strike the right balance between price, sustainability and service page 14

Calories

Sugars

Fat

47

8,8g

0,2g

3%

10%

1%

Saturates

Sodium

0,0g 0,004g 1%

1%

The only part of your daily energy needs we don’t manage

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INSIDE THIS ISSUE GAS & ELECTRICITY Editor Tim McManan-Smith tim@energystmedia.com

t: 020 3714 4450 m: 07818 545308 Sales director Steve Swaine

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This absence of detailed account-level data often forces suppliers to adopt a risky ‘one-size-fits-all approach’

The tip of the data iceberg – current data practices will not bring about customer satisfaction and it’s not just about pricing See page 16

HVAC

steve@energystmedia.com

t: 020 3714 4451 m: 07818 574300

An RAF Museum in Shropshire will cut the energy consumption and the cost of heating its hangars by more than £25,000 a year See page 30

Production Paul Lindsell production@energystmedia.com

m: 07790 434813 Circulation enquiries circulation@energystmedia.com

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OEM With energy prices expected to rise, being energy efficient is vital for schools and education providers to keep costs to a minimum See page 48

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Front Cover - See page 14 June/ July 2014 Issue 92 theenergyst.com

News & Comment .................................................................. p4 Gas & Electricity ...................................................................... p12 HVAC.......................................................................................... p30 Lighting .................................................................................... p40

Efficient control of utilities and facilities

striking the right balance

Outsourced Energy Management.................................... p48 No part of this publication may be reproduced without the written permission of the publishers. The opinions expressed in this publication are not necessarily those of the publishers. water energy & environment is a controlled circulation magazine available to selected professionals interested in energy, who fall within the publishers terms of control.

For those outside of these terms, annual subscriptions is £60 including postage in the UK. For all subscriptions outside the UK the annual subscription is £120 including postage.

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Water Management.............................................................. p58

How SmartestEnergy is helping energy buyers successfully strike the right balance between price, sustainability and service page 14

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To subscribe please contact circulation@energystmedia.com Jume/July 2014 | water energy & environment

3

News & CommeNt

Energy demand being taken more seriously by government

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ESOS has come into force and many organisations have not yet decided how best to tackle the issue

There are a number of initiatives coming about that affect energy users and show that demand reduction is at last being taken seriously, even if it is still very much a secondary thought after supply side concerns. Water, Energy & Environment has undertaken a timely research paper that examines current attitudes to energy efficiency with particular emphasis on the piece of government legislation ESOS – Energy Saving Opportunities Scheme. This is the UK’s implementation of article 8 of the EU Energy Efficiency Directive and requires all companies that are not SMEs to undertake a mandatory audit by December 2015 and every four years thereafter. Copies of the survey are available at theenergyst.com ESOS has come into force and many organisations have not yet decided how best to tackle the issue.

Exemption is provided by a number of routes such as ISO 50001 but time is of the essence, qualification ends in December this year with full compliance required by December 2015. The biggest concern for the scheme as a whole is to ensure that it is not just another tick-box exercise leaving reports gathering dust on the bookshelves of UK industry.

The survey highlighted the fact that finance is still the number one barrier to energy efficiency but since our last survey this is reducing. There are many options around that enable investment in technology that can be paid for by the savings and this this may be starting to have an effect or it may just be the recovery from the recession. The DECC’s Electricity Demand Reduction (EDR) pilot is making £20m available to support projects that deliver lasting reductions in electricity demand.

This pilot will test whether EDR could participate in GB’s capacity market. Projects will bid into an auction and commit to delivering a kW saving, successful bids secure funding, that can then be used to support the installation of more efficient electrical equipment. If will pay the difference that helps make a project viable for a business. So if reducing a five-year payback to three was acceptable the EDR scheme would pay the difference in these two calculations. There will be a minimum bid size of 100kW in the auction. This may be achieved by a single project or through several projects, aggregated into a single application. See page 10 for further details of what EDR is and how you could get involved.

Our survey also showed that board level engagement as a barrier has dropped by a third, which is encouraging in that it sets the tone for a whole organisation that saving energy is a worthwhile objective. This is corroborated by the survey wherein 68% of end users do not see energy just as a burden but as an operational resource that can be migrated against. The tide may be changing and the largely untapped potential of energy efficient UK businesses may well be realised. Let’s hope so.

4 June/July 2014 | water energy & environment

sponsored column

National Grid to contract for new balancing services

Electricity system operator National Grid is to tender for two new services to help balance supply and demand in the coming winters.

The move follows a call for expressions of interest earlier this year, a consultation on the two services and approval from Ofgem in 2013.

National Grid is currently tendering for up to 330MW Demand Side Balancing Reserve (DSBR) for winter 2014-15; and will tender by autumn 2014 and in early 2015 for a total of up to 1,800MW of both DSBR and Supplemental Balancing Reserve (SBR) for winter 2015-16.

These services will help ensure the country continues to benefit from high levels of system security.

The DSBR is looking to sign up large energy users that have the flexibility to reduce their electricity use – for example by switching to back-up generation – when demand is at its highest between 4pm and 8pm on winter weekdays. This will be in return for a payment, and on a purely voluntary basis.

Such a move will help stimulate a Demand Side Response (DSR) market, which ultimately will help keep energy system costs

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down for consumers by avoiding the need to build additional power stations to service peak demands.

National Grid already buys similar demand-side services from a range of businesses, and many large businesses already reduce their electricity usage in peak demand periods to reduce their costs.

Supplemental Balancing Reserve (SBR) is targeted at contracting for reserves from generating plant that would otherwise be closed or mothballed.

Plant would need to be available on winter weekdays between 6am and 8pm.

The maximum volume needed for the coming winters is set out as follows: 2014-15 – 330MW (DSBR) 2015-16 – 1800MW (DSBR and SBR) 2016-17 – 1300MW 2017-18 – 800MW Tenders for the winters of 2016-17 and 2017-18 will only be undertaken if an ongoing need for these services is identified and the funding arrangements are extended beyond 2016 by Ofgem.

It is not anticipated that these services will be required in 2018-19 because the government is introducing a capacity market.

A day in the life of an account manager Delivery of leading account management services is helping the way we perceive energy brokers and consultants. we asked Charlotte Fowler, head of account management at Pulse Business energy, to explain why Why don’t suppliers fill the account management role?

A lot of our contacts at supply companies would make great account managers. At the same time, they don’t have the same level of empathy that we do with our clients. When you have hundreds of accounts to manage you simply can’t provide this.

We have no restrictions on what we can do. One of our directors likes to remind us that he once sat on the side of a road from 8am to 1pm waiting for a meter installer who had missed the last two appointments to connect a large digital screen on the Euston bypass. On a day to day basis we’ll attend meetings at short notice, quickly turn around research and even support bids clients need help on. Our clients are dynamic and we need to be dynamic in our response. Larger corporates have layers of tape that restricts their speed and ability to think out of the box.

Where do clients need the most support?

It varies from client to client but all clients tend to need help with metering and AMR issues. This is because suppliers pass this work to third parties and whenever that happens the client loses visibility.

So we spend a lot of time chasing down those contractors and making sure they keep to schedule.

We also provide a lot of reporting in the form of budgets, usage, billing and trading results. We found that the best way to provide this information is on a monthly basis in one reporting suite. Not everyone requires it monthly but everyone knows that each month they will have this should the need arise.

What’s the most rewarding thing you’ve done?

I am really interested in technology (geek!) and for the past six months we’ve been building a new online reporting system that client can access to retrieve bills, budgets, usage data and market news.

Working on something like that from the feet up is really rewarding and something to be proud of.

As we have always done things our own way it felt right to do the same with this rather than buy something off the shelf and shoe horn it into our clients.

Who would be your dream client?

I studied Culture & Art at university so someone like the National Gallery or British Museum would be. The good thing about our job is that we need to understand the client’s working patterns and therefore energy usage patterns.

This involves getting to know their culture and practices on a deeper level so understanding the ins and outs of museum/gallery life for me would be cool.

info@pulsebusinessenergy.co.uk t: 0333 7000 250 www.pulsebusinessenergy.co.uk

News & commeNt

emR is the ‘right intervention at the right time’ The UK’s energy market “does not work” and market intervention is therefore needed to ensure that lowcarbon energy generation and security of supply are properly valued. That’s according to the head of the country’s transmission system operator.

Speaking in London in June, National Grid ceo Steve Holliday told the UK energy 2014 meeting that the UK government’s electricity Market Reform package is “the right intervention at the right time.” Mr Holliday said it would address the twofold

“It is crystal clear that very few markets place a true value on security of supply” challenge currently facing the electricity market: firstly, “the energy market today does

not value low carbon”, and “secondly, it is crystal clear that very few markets place a true value on security of supply”. one of the main mechanisms of the reforms is the contracts for Difference (cfD) scheme, which is designed to encourage investment in low-carbon technologies, including nuclear, by guaranteeing future revenue streams and thereby reducing risks to investors.

Speaking at the same event, eDF energy ceo Vincent de Rivaz referred to the ongoing state aid investigation by the european commission

into the terms of the cfD negotiated between eDF energy and the government for the proposed Hinkley Point c nuclear power plant.

He said that his company has “a strong case” and claimed that the proposal is compliant with all the state aid rules of the european Union.

Mr De Rivaz noted that member states have the right to choose their own energy mix and that Hinkley Point c would help address the challenges of security of supply, climate change and affordability.

cosmic solution to the carbon challenge energy minister michael Fallon descended into the science & technology Facilities council’s Boulby Underground Laboratory – the UK’s deep underground multi-disciplinary science facility housed in Britain’s deepest mine – on 13 June to witness a milestone in the search for solutions to the problem of carbon emissions. mr Fallon visited cuttingedge particle detectors that are being developed to determine the quantity and distribution of rock structures overhead (the overburden) from deep underground. this capability could remove a big barrier to the introduction of carbon capture and storage (ccs) technology by making it possible to monitor co2 fed into depleted oil and gas fields and so ensure it is being stored securely.

Development of the detectors is the focus of a £1.7m project funded by the Department of energy & climate change and Premier oil. the consortium delivering the project includes the universities of Durham, sheffield and Bath,

cleveland Potash, Premier oil and stFc, with NAsA also providing input.

Located 1.1km down in the workings of Boulby mine on england’s north-east coast, Boulby Underground Laboratory is run by stFc in partnership with cleveland

6 June/July 2014 | water energy & environment

Potash, the mine’s operators. the detectors now being built and commissioned there detect muons – charged particles produced when cosmic rays from distant supernovas strike the atmosphere. the particles then shower downwards before penetrating several

kilometres into the earth. one of the detectors, located in a “gallery” extending out under the North sea, will use these muons to monitor the change in overburden due to the movement of tides taking place more than half a mile overhead. this will provide a first proof-of-principle for the overburden measurement and imaging technique, known as “muon tomography”. the minister also saw a smaller, more sophisticated prototype specifically designed to fit into oil and gas boreholes through which co2 would be fed. mr Fallon said: “It is fascinating to see how the innovative co2 monitoring technology being tested at Boulby could help to reduce the costs of carbon capture and storage.” the current method collects seismic data – an expensive option that only produces snapshots of what is happening. muon detectors can conduct non-stop monitoring and cut annual monitoring costs from about £300m to £60m per repository, making ccs more viable.

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England’s water market to open to competition “This should be seen as an opportunity for customers to put themselves in the driving seat now”

country could switch all of them to one supplier, benefiting from associated economies of scale across billing and administration, as well as driving significant value from services like water efficiency initiatives and trade effluent management.

Mr Powles said: “This shouldn’t be about Royal Assent and then nothing for three years. We’ve spoken to lots of customers who don’t feel as if they’re getting value from their regional suppliers, but can’t do anything about it.

“This legislation should be seen as an opportunity for customers to put themselves in the driving seat now, so that when competition does kick in, they’re in a position to know exactly what they want and expect from their water company – and that’s bound to be more than just a bill.”

More than a million english businesses will be able to choose their water supplier for the first time after new legislation was passed to bring competition to its £2bn market.

The Water Bill was granted Royal Assent on 14 May, providing english non-domestic customers with choice over their water supplier, with the aim of improving customer service and water efficiency.

In Scotland, the nondomestic water market opened to competition in April 2008, and since then customers have saved more than £36m from their water bills by reducing the volume of water they use. More than £30m of discounts have also been taken up by customers.

Mark Powles, chief executive of Business Stream – a Scottishbased water services company that already operates in england

– said the legislation would force water companies to improve their services towards customers or face losing market share.

The new market in england is scheduled to open to all customers in April 2017. At the moment, only the very largest users of water – sites consuming more than 5 million litres a year – can switch supplier.

Mr Powles said: “The important point about retail competition is that what happens at a network and infrastructure level shouldn’t affect the service the customer receives at the retail end. If this market is successful then in a few years we’ll hear customers saying they’re getting a better deal than they are now, that they’re more aware of the role water plays in their businesses, and they feel more in control of the service they receive.”

False geometry for Fallon

esos will help to raise profile of energy savings among large businesses

The government is in support of a greenhouse gas emission reduction target without a binding renewables target.

Signing up to yet more greenhouse gas emission targets, irrespective of the impact on consumers and business, would be deeply irresponsible, says energy minister Michael Fallon.

Speaking at eurelectric’s annual conference, he said talk of the trilemma that posits security, affordability, and decarbonisation at opposite points of the triangle is “false geometry. Without secure, affordable energy we will not be able to move to a more sustainable, lower carbon energy future.”

Mr Fallon added that the framework for 2030 must be a driver for competitiveness and resilience that secures investment in a diverse and low carbon technology base.

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The energy Saving opportunities Scheme (eSoS) has been launched

by Decc (26 June). It affects all businesses that are larger than SMes; greater than 250 staff, a turnover of £42.5m and a balance sheet of more than £36m; and requires them to conduct a manatory audit by December 2015 and every four years thereafter.

A recent eSTA conference chaired by Tim McManan-Smith provided a number of contrasting views on the subject.

Many agreed that it would at the very least raise the profile of energy saving among larger organisations and get the attention of the board. Lisa Gingell, t-mac Technologies director and eSTS board member, commented: “In essence, the legislation is

currently england’s water market is split into regional monopolies, with the existing market structure allowing very little scope for customers to exert pressure on suppliers to tailor the services they provide.

Under the competitive market, though, a business with several sites across the

beneficial in the fact that it puts more audits in place, which will in effect raise awareness within business of opportunities for energy improvements.

“However, where we believe eSoS is lacking is in its efforts to influence businesses go to the next level. encouragement to physically implement the

proposed solutions and changes isn’t part of the legislation.

A lack of “full-circle” energy thinking to get businesses to act on the data collected and make the change to see the savings in energy costs and carbon emissions is where eSoS may fail to make an impact.”

It was pointed out by some delegates that although there is no explicit requirement to enact any of the measures created by mandatory auditing it does have to feature within annual reports and therefore progress can be monitored via these. In effect it would look bad if a company were moving backwards or making little progress.

Water Energy & Environment has surveyed views of energy efficiency in general with a particular look at attitudes to eSoS and ISo50001. To get a copy go to theenergyst.com

June/July 2014 | water energy & environment

7

News & commeNt

offshore wind is ‘coming of age’ offshore wind is on course to meet 10% of UK electricity demand by 2020, according to The crown estate, manager of the UK seabed.

It has published two reports at this year’s Global offshore Wind 2014 conference painting a picture of an industry maturing and on course to double its capacity by 2020 to 10GW or more – about 10% of the UK’s electricity demand.

Offshore wind operational report 2014 highlights the sectors continuing growth, while Sharing lessons learned and good practice in offshore transmission sets out a pathway to cost reduction which will help

unlock the sector’s potential. commenting in the report, the secretary of state for energy and climate change

ed Davey said: “The UK is the number one country in the world for offshore wind, supporting green jobs and growth as well as strengthening our energy security. We have already attracted over £30bn worth of investment in renewable technologies since 2010. our ambitious electricity market reforms provide investors with the long-term certainty they need.”

Huub den Rooijen, head of offshore wind at The crown estate, said: “With around 1,465 wind turbines in operation or under construction and nearly 4GW in operation it is fair to say the industry is coming of age.”

Ofgem calls on suppliers to explain prices energy regulator ofgem has called on the Big Six energy suppliers to explain to their customers what impact falling wholesale costs will have on their energy prices. In a letter to the large suppliers, ofgem outlined that failure to engage with consumers on this issue further risks undermining public confidence in the energy market if wholesale costs continue to fall.

In recent months, both wholesale gas and electricity prices have been falling significantly. In early June, gas prices for next-day delivery reached their lowest level since September 2010 and are now about 38% below this time last year. The trend has been similar in electricity, with prices reaching their lowest level since April 2010 at the beginning of June. They are currently about 23% lower than this time last year.

While there are upward pressures on energy costs resulting from government schemes to support environmental objectives as well as energy network

“Prices rise like a rocket and fall like a feather” renewal, the costs of wholesale power and gas cost dwarf these and make up just under half the total bill.

Forward prices for gas and electricity have also fallen. compared with last winter, gas and electricity prices for the coming winter are about 16% and 9% lower respectively than last year. This trend has been driven by the mild temperatures across GB and europe last winter, leaving gas storage at record levels.

In a competitive market the threat of losing market share would encourage suppliers to reduce their customers’ bills whenever there are sustained reductions in costs. Suppliers are yet to reduce their prices for existing customers to reflect the wholesale cost changes.

8 June/July 2014 | water energy & environment

ofgem chief executive Dermot Nolan said: “The Big Six suppliers tell us that they think the market is competitive but our research shows that consumer trust is low. Therefore if suppliers are going to start rebuilding that relationship they need to take the initiative and explain clearly what impact falling wholesale energy costs will have on their pricing policies.

“If any of the companies fail to do this, consumers can vote with their feet.

Independent suppliers are currently offering some of the cheapest tariffs on the market.

Speaking at eDF energy’s TalkPower event, MrNolan suggested that prices rise like a rocket and fall like a feather. eDF energy’s ceo Vincent de Rivaz agreed that this is the percieved wisdom but that it isn’t very wise. ofgem is currently proposing referring the retail market to the cMA after a joint report with the oFT and cMA confirmed that competition is not working as well as it could.

Renationalise if you want trust A survey has revealed that 56% of UK citizens would trust the energy sector more if it were back under state control. continued low levels of trust in the UK’s energy industry could be remedied by an increase in government intervention in the market, according to new analysis from edelman’s 2014 Trust Barometer.

More than half of UK citizens polled (56%) would trust the industry more if it were returned to state control, with only 18% stating they trust it more as a privatised industry. Nearly three-quarters (73%) called for additional government regulation.

Trust in energy in the UK, which has fallen to 31%, is lower than anywhere else globally. This marks a decrease of 6% on 2013 levels, making it the least trusted industry – even below banking. 82% of those that reported lower levels of trust this year attribute the drop to the increasing price of household electricity bills; while levels of industry profit were also among top reasons cited. 41% of respondents also said the ongoing debate on the cost of living was likely to impact trust in government over the course of the next year.

Underlining the extent of the challenge facing both government and industry, the UK has the least trusted energy sector (31%) of any global energy market, with the global average being 28 points higher (59%).

The poll also revealed that the public wants the energy industry to be a more active participant in the broader debate around energy policy (65%), including providing improved products and services and making structural changes to the industry.

sponsored column

the end for large scale solar?

The Department for energy & climate change has published Consultation on changes to financial support for solar PV, setting out its intention to remove the current support mechanism for large-scale ground mounted solar energy projects.

The Renewables obligation (Ro) will close to new projects – and extensions – above 5 MW from 1 April 2015.

Neil Budd, a lawyer in the energy team at law firm SGH Martineau, said: “While the industry was braced for bad news, the proposal to remove Rocs entirely from projects above 5 MW has come as a shock. “on a positive front, projects

of 5MW and below will remain eligible for Renewables obligation certificates and FiTs. So while the large projects may not now proceed, developers can, at least for the moment, still develop ground-mounted projects of a moderate size.

Decc has highlighted that projects can apply for contracts for differences (cfD) under the new regime being introduced this year.

“This is true, but the allocation mechanism for cfDs has not been finalised,” says Budd, “so it is difficult for project developers who were anticipating commissioning projects at 1.3 Rocs to develop projects with no idea of the likely revenue stream.”

Working with businesses for budget certainty With non-commodity elements now making up between 40-50% of electricity bills, and with many of these costs being associated with the evolving energy policy landscape, Darren Lennon, head of strategic sales at npower, explains how a new wave of ‘Fixed: Certainty’ tariffs will help UK businesses accurately budget for the years ahead

UK Green Investment Bank reveals plans for £1bn fund The UK’s Green Investment Bank has announced its 2013-14 results and revealed plans for a new £1bn fund.

With 18 months of activity so far, the majority of GIB’s investments (88% by value) remain in construction and, in line with standard accounting practice, a significant proportion of income is deferred to future years. GIB recorded an operating loss of £5.7m in the current year but is on track to reach sustained profitability once its current portfolio is built and operating.

GIB has also announced plans to launch a £1bn fund to acquire equity stakes in operational offshore wind projects in the UK. GIB is seeking a suitable group of strategic, long-term co-investors to participate in this capital raising exercise. The fund will be managed by a GIB subsidiary, which is currently regulated by the Financial conduct Authority (FcA) and will be seeking permission

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from the FcA to become a regulated fund manager.

To support that growth, it is vital that developers – typically large utilities – are able to refinance part of their investments in operating assets to reinvest in new developments. This requires a significant broadening of the number of long-term investors in UK offshore wind projects.

In May 2014, GIB received State Aid approval from the european commission to promote and manage funds and other co-investment structures for mobilising upfront private sector investment into its designated sectors. This widening of GIB’s activities will enable it to promote and manage funds and all other types of structured co-investments within any of its designated green sectors, allowing it to raise and deploy private sector capital in addition to its current £3.8bn of equity funding from the UK government.

With energy bills increasingly becoming a bottom-line cost for the UK’s major energy users, it is not surprising that we have seen energy enter the boardroom debate. A key topic among this debate is accuracy and transparency when it comes to budgeting for energy bills.

In today’s marketplace, energy bills contain so many unpredictable costs – from commodity prices that can change hourly, to transportation and network charges influenced by a whole host of elements. It’s these variables that can make a real impact on a business’ margins.

Taking into consideration the flexes in government policy, as well as commodity costs, we have worked behind the scenes to develop a tariff that will support our customers in the ever-changing market. We have designed a tariff to meet the needs of the board, provide

budget certainty for the duration of fixed contracts and deliver a promise not to reconcile against costs that are agreed as fixed.

For our electricity customers, this includes the Feed-in Tariff and Renewables Obligation, both having caused problems and volatile bills for businesses in the past. As a result, fixing these costs will enable companies to have a clear and stable monthly budget for energy.

The new tariff, launching on 7 July for our industrial and commercial business customers, is available across both power and gas. whether you are partnered with us or another supplier, you can find out more about the Fixed: certainty tariff and discuss the new product with our dedicated team at business@npower.com

insighT

Show me the money The government has put aside £20m for a pilot scheme to enable industry to deliver lasting electricity demand reduction (EDR). This will enable it to ascertain whether demand reduction can participate in the electricity markets reform’s capacity mechanism

T

he UK government is making £20m available to support projects that deliver lasting reductions in electricity demand, for example through the installation of a more efficient lighting system or a pump. The aim of this pilot will test whether EDR could participate in GB’s capacity market.

There will be a competitive auction process and participants will bid in an amount of electricity demand savings they can make and a price at which they are prepared to “sell” it. This will test the Capacity Market approach which takes bids from organisations to supply capacity. Successful bidders will receive funding in line with the level of their bid (£/ kW) and the amount of savings proposed, spread across a payment at installation and on provision of evidence of that those savings have been delivered. This money will help subsidise the measure.

Bidding rules Projects will bid into an auction and commit to delivering a certain kW saving (not kWh, which is the measure for total energy used). Successful bids secure funding, that can then be used to support the installation of more efficient electrical equipment.

Projects will need to qualify and this will include submitting a project plan with estimated savings and a plan for measuring and verifying these. Applicants will bid a price, expressed in £/kW, for

which they are prepared to “sel” that electricity demand reduction (capacity) saving.

There will be a minimum bid size of 100kW in the auction. This may be achieved by a single project or through several projects, aggregated into a single application.

There will be no limit on maximum bid size or on total subsidy awarded to any one participant (subject to the budget constraints of the funding available.

Applications may include a mix of technologies and cover a number of sites or facilities.

Successful bidders will receive a grant payment – not a loan – from government for delivering EDR during the peak period, with efficiency savings split between a payment at installation and a second payment on providing evidence of the delivery of savings.

Behavioural measures will not be eligible for the auction timetabled here. However, organisations that deliver behavioural EDR measures are encouraged to contact edr-project@decc.gsi.gov. uk with a view to discussing how these might contribute to EDR delivery in future.

A maximum price will be set for the auction, to ensure value for money.

Payments If an applicant is successful then the contracts are for one year. Successful bidders will receive 50% of payment on confirmation of installation and a further payment of 50% on delivery of savings (ie, after 12 months’

10 June/July 2014 | water energy & environment

operation, on receipt of evidence of the savings).

Under-delivery will lead to payments being reduced.

Measuring and verifying savings (M&V) How to measure and report savings will build on the approach set out in international protocols (IPMVP) and include three broad approaches: • Deemed: savings are pre-calculated for a list of technologies.

• Partial measurement: combination of metering and calculations or estimates of key variables.

• Full measurement approaches: metering before and after.

Who and what will be eligible?

Projects will need to be based in Great Britain and deliver efficiency savings at least during times of winter peak electricity demand (4-8pm on weekdays, NovemberFebruary). Projects which would not be eligible include: • Those that shift electricity demand to other times of the day • Measures benefitting from specified forms of government incentive (such as Climate Change Agreements, Salix loans) • Savings made by switching to other energy sources (eg, onsite generation) Applicants from all sectors – public, private and voluntary are eligible as long as they meet the criteria for

the pilot. Projects should be based in Great Britain (England, Scotland, Wales).

What projects and measures will not be eligible?

• Those that shift electricity demand to other times of the day.

• Savings made by switching to another energy source (eg, switching to Combined Heat and Power).

• Any measures that have been installed by successful bidders before the signature of a grant offer letter.

• Any measures that have received or will receive an incentive payment from another Government scheme.

To illustrate this more specifically: • Climate Change Agreements (CCAs): Given that they benefit from a Climate Change Levy Discount, facilities with a CCA will not be allowed to bid into EDR for any of their processes or activities that are covered by their CCA. • CRC Energy Efficiency Scheme: Organisations in the CRC are eligible to participate in the EDR pilot, but if they have facilities covered by a CCA, they will not be allowed to bid into EDR for any of their processes or activities that are covered by the CCA. • Energy Company Obligation (ECO): Energy suppliers with obligations under ECO will not be allowed to bid into EDR

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Complacent traders of the summer… winter is coming By serge Mazodila, lead trader of Lg Energy group A steadfast Bearish start to the summer trading season, a result of the colossal quarter one 2014 sell-off, has kept many market participants at ease with regards to future hedges.

With complacency lingering over current pricing levels, due to the weak fundamentals governing energy prices, the market hasn’t seen such low trades in more than three years (going back to 2010) for most contracts, with some posting record lows since their inception.

Could traders be taking their eyes off the ball as a result of current sentiment?

market fundamentals and trading sentiment (geopolitical risk), prices at the back end of Summer 2014 (Qtr3 2014) look set to opt for an horizontal trading trajectory while still carrying the underlying risk of potential of prices spikes. On the back of energy market unfriendly news, similar to the recent breakdown in gas price negotiations between Kiev and Moscow, wholesale gas and power prices in the UK could quickly revisit the highs of mid-April or further north with the latest bout of disputes ending with Russia cutting off supplies to Ukraine.

Those who watch the wall… of worries

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for measures they have to install under ECO. Green Deal cash-back: Measures that have benefitted or will be benefitting from the Government’s Green Deal cash-back scheme will not be eligible.

Salix Loan Scheme: Measures that have received or will receive funding from the Salix Loan Scheme are not eligible.

Renewables Heat Incentive: Grid-related measures that have or will receive funding from the Renewables Heat Incentive are not eligible.

Capital Allowances: Applicants need to ensure that any EDR funding

theenergyst.com

they receive is deducted from their claim for capital allowances4. For example, if a company invests £1,000 and receiving £100 from the EDR pilot, only £900 will qualify for capital allowances.

One of the key points to bear in mind is that the pilot will pay the difference that helps make a project viable for a business. So if reducing a five-year payback to three was acceptable, the EDR scheme would pay the difference between these two calculations. we&e To register your interest in taking part in the pilot, or if you have questions, contact edr-project@decc.gsi.gov.uk

What we know and what we don’t know can be regarded as the foundation of the modern-day view of market uncertainty. Although we know the current state of the physical market with regards to storage, power margins, expected demand and even weather forecasts, government decisions and the actions of political dissidents have thus far reminded the energy market of the truly unforeseeable nature of geopolitical risk.

After the numerous market spikes caused by the annexation of Crimea, Ukraine’s election and most recently the sabotage attempt of a transit pipeline in Central Ukraine, uncertainty has persisted in the form of geopolitical added risk-premia despite the current accommodative and comfortably low trading price.

The bleeding, Casterly, rock Drawing blood from a stone has always been synonymous with a near impossible task, and the trading period of summer 2014 looks set to paint such a picture for those who missed out on this year’s biggest “short” opportunity.

As the cacophony of news flows leads to conflict between actual

A stark reminder Surrounded by the high degree of uncertainty emitted out of the Middle-East (Iraqi crisis) and Eastern Europe (Ukraine vs Russia), a “cautiously Bearish” outlook for the UK’s energy market reflects the plethora of upside risks still present in the form of geopolitical uncertainty.

LG Energy’s warning-plagued outlook aims to carefully guide the expectation of slightly lower prices in the second part of summer 2014 with a bold acknowledgement of the great upside risks, which can erupt at the drop of a hat (recent 10% weekend spikes). As a result, the need for a highly sophisticated approach to quantitatively measure end-users’ market exposure risk and the cost of the widespread complacency should be paramount, ahead of what may be another slow start to the winter of 2014.

To learn more about LgE call 01253 767222 or visit www.lge-group.com

gas & ElEctricity

Businesses offered long-term fix As announced at the Talk Power Conference in May, EDF Energy has launched a contract offering businesses electricity-purchasing price certainty for five years

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DF Energy is offering business the opportunity to fix their electricity prices for up to five years.

In what is claimed to be the first of its kind, the company has created a £50m contract enabling South Staffordshire Water to fix the majority of its energy costs from day one.

Water companies’ income is controlled by a cycle that agrees their earnings and investment over a set period.

This protects consumers, gives investors greater certainty and ensures best management of the water network. However, previous to its contract, South Staffordshire Water’s ability to fix its energy costs was limited by the availability of wholesale prices that matched ts five -year investment cycle.

The contract was signed in February 2014 for a supply starting in 2015 and runs for five years until 2020, when South Staffordshire Water’s next investment cycle finishes.

The contract fixes the majority of the company’s electricity costs from the day of signature, giving South Staffordshire

Water greater certainty of the majority of its energy costs.

EDF Energy’s new approach takes South Staffordshire Water from relatively shortterm purchasing to the more longer term; smoothing costs for consumers.

Keith Marshall for South Staffordshire Water said: “We believe that our customers can only benefit from this efficient approach. Electricity accounts for almost 20% of our annual costs, second only to salaries.

“We looked for an energy company that understood our purchasing needs and was willing to bring both its expertise and a competitive price to the table. This contract means South Staffordshire Water can better focus attention on energy reduction and carbon management rather than trying to beat the wholesale market.

“The team at EDF Energy worked effectively in partnership with our legal and energy teams to design this contract. They fully understood the challenges of forecasting for a fiveyear AMP cycle and built a

EDF boss Vincent de rivas announcing the deal at talk Power

product for us that works.”

Sid Cox, director of the business division at EDF Energy, said: “We know that businesses are looking for ways to control costs and reduce risk. Businesses wanting to get long-term price certainty should follow South Staffordshire Water’s lead.

“Partnership with our sister company EDF Trading made this unique purchasing approach possible and I believe this industry first would also benefit other businesses that want longerterm price certainty. We are even able to offer prices out as far as 2024 from today.”

Water companies’ income

is controlled and fixed over a five-year period through a consultation process with Ofwat known as the Asset Management Planning (AMP) cycle. This process agrees their income and investment over the period, protects consumers, gives investors greater certainty and ensures best management of the water network.

Energy costs are a significant part of water companies’ costs and their ability to fix these is limited by the availability of wholesale prices that match the AMP cycle. Generally, wholesale electricity prices are only quoted three years into the future. we&e edfenergy.com

Bearish sentiments in power and gas markets Eastern Europe Power and gas continues and markets in the UK the ongoing are determined competition to continue their for global bearish slide The polar opposite gas reserves in spite of an of last year remains, as the economic recovery Far East continues that the rest of the to expand. There Eurozone envies, are two key aspects writes Sam Berry, energy from the current downturn procurement analyst at BIU. that we can learn from gas The fractious geopolitics of

2014

12 June/July 2014 | water energy & environment

and power markets. First, prices are very closely tied to supply and demand dynamics which has been evidenced over the past two years; last year a cold winter and storage levels being effectively empty as winter concluded, ensured prices stayed high throughout the summer months and only began to fall as we entered 2014, when the system recovered.

This year, the polar opposite.

Second, a flexible riskmanaged energy procurement strategy is the only effective way to ensure that an organisation can achieve its energy purchasing objectives, whether that is hedging significant volume further out on the curve in a bear market or avoiding the top when the bulls return. biu.com

theenergyst.com

Vayu enters UK business gas market Irish energy supplier Vayu has announced its expansion into the UK, providing natural gas and energy services to businesses across the industrial and commercial sector

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ayu will become the first Irish energy supplier to target the UK business gas sector. It has grown steadily since 2003, when it became the first independent supplier to be awarded a gas shipping and supply license in Ireland.

The company now supplies 22% of Ireland’s largest natural gas business users and 15% of the midsized gas user segment.

Gas customers include companies such as Tesco, IBM, Debenhams and DHL. Vayu commercial director Liam Faulkner says the company is focused on becoming a leading provider of gas and energy procurement solutions to businesses across the UK, giving customers a competitive alternative to other suppliers in the sector.

“We believe there remains a large untapped opportunity to deliver new services into the UK market. Vayu will be investing heavily in winning customers by changing the way UK businesses view their energy-related decisions and empowering customers to become more active in the

area of energy procurement and demand management.”

“We have established a business model that has worked exceptionally well in Ireland, creating flexibility for gas users that wasn’t there previously. Our model is highly transferable – similar to the approach used by telecoms – which means we can follow our existing customers into the UK while also pursuing new business wins in this market.”

Heading up the UK business is head of energy services Vayu UK Simon Firth, who is to grow Vayu’s customer base in the UK. He brings a wealth of experience and passion for delivering exceptional customer service, having spent 20 years in the energy industry working in a variety of segmented sales and service roles for Yorkshire Electricity Group, Npower and Bergen Energi.

Commenting, Mr Firth states: “This is a very exciting time for Vayu as we enter into the UK market and I believe we have outstanding solutions to offer. In addition to gas supply, our Active Energy Management service monitors

Head of energy services at Vayu UK simon Firth, right, and liam Faulkner, commercial director

consumption in real time, reporting back deviations from normal energy usage.

At Vayu UK, we use energy management, monitoring and technology to improve our customers’ energy performance, reducing cost, consumption and carbon.

“While we are industry experts in the registration and invoicing of gas supplies we realise that the timing of wholesale commodity purchasing is one of the central factors in achieving or beating financial budgets, and so Vayu UK adds significant value to businesses by offering risk management

services. These services help support clients with their understanding of the consumption and commercial risks faced with purchasing energy in a volatile market.

We work with customers to develop robust purchasing strategies, with a documented risk management approach.

“This end-to-end solution of Active Energy Management, pro-active risk management, integrated with supply, provides the best longterm value package for end users and allows us to offer a compelling alternative to gas users in the UK.” vayu-energy.co.uk

VSD+ COMPRESSOR IT’S SO ADVANCED...

COVER STORY

Striking the right balance

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David Taylor, vice president sales and marketing at SmartestEnergy, believes the company has the right blend of price, sustainability and service to help its customers manage the challenges of energy buying

nergy procurement is becoming increasingly more complex – as well as a raft of new suppliers bringing more choice, the entire market is being overhauled under the coalition government’s Electricity Market Reform.

Getting the right blend of price, sustainability and service in a moving market is a challenge.

Prices forecast to be more volatile Price is still the biggest issue for many buyers and the longterm rising trend means energy is firmly established as a key risk for any business. And it is not just the cost of the energy itself which has risen but other charges, such as those to pay towards network upgrades and renewable subsidies, have also increased dramatically.

Market changes, political instability and the growth of intermittent renewable generation give rise to a new risk in the shape of greater volatility.

Rising prices and greater volatility means energy buyers are increasingly looking for

contracts that can help them better manage risk and take advantage of any opportunities to secure lower prices.

Flexible contracts enable businesses to actively manage their purchasing strategy to benefit from favourable market prices. Such contracts used to be restricted to the largest energy buyers but recent innovation from SmartestEnergy means smaller businesses can also take advantage of a flexible purchasing strategy.

The growth of other charges also prompted us to develop EnviroPass, a unique product that passes through environmental charges at published rates, guaranteeing that companies never pay more than needed for their energy.

social responsibility ambitions – see the case studies on Marks & Spencer and John Lewis Partnership (below).

Looking ahead, we expect more and more major business energy users to want to demonstrate to customers and stakeholders exactly where there electricity has come from.

Sustainability agenda on the rise As well as looking to better manage costs, business energy customers are increasingly sourcing more sustainably.

Many of the UK’s leading companies have switched to 100% renewable energy as part of wider corporate

across the industry have been led by new entrants such as SmartestEnergy. We have achieved the highest levels of customer satisfaction* for four years in a row - proving that price, sustainability and service can all be delivered in a single package.

We try to always put

Service still a differentiator for suppliers Improvements in service

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customers at the heart of our business, providing services to help them manage their energy usage in the most effective way. Accurate, upto-the-minute information about energy consumption and cost is important to manage costs, reduce waste and improve sustainability.

A personal relationship between buyers and suppliers is also important. In an increasingly complex energy world, being able to pick up

We have achieved the highest levels of customer satisfaction for four years in a row – proving that price, sustainability and service can all be delivered in a single package the phone to chat through the implications of the latest policy announcement or market development is something that all energy buyers should expect from their supplier. *Datamonitor B2B Energy Buyer Survey 2010, 2011, 2012 and 2013 smartestenergy.com

Case studies: retailers lead the way on sustainability Marks & Spencer has worked with SmartestEnergy to develop the first agreement of its kind under which electricity equivalent to the retailer’s 65 Scottish stores is sourced from independent generators north of the border. These generators include community projects, where funds generated are being used to help provide amenities for residents in remote areas.

The John Lewis Partnership also recently signed a major energy supply deal with SmartestEnergy, which will provide a major boost to renewable generation projects owned by communities, farmers and small businesses across the UK. The agreement will see more than 380 Waitrose and John Lewis sites supplied with 100% renewable electricity from SmartestEnergy’s portfolio of hundreds of independent generation projects.

14 June/July 2014 | water energy & environment

theenergyst.com

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Gas & electrIcIty

The tip of the data iceberg Energy has hit the headlines yet again, with Ofgem calling on suppliers to explain what impact falling wholesale costs will have on customers’ energy prices. Yet pricing is just the tip of the giant iceberg that is data management, writes ENSEK chief executive officer Jon Slade

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n a letter to large suppliers, Ofgem outlined that “failure to engage with consumers on this issue further risks undermining public confidence in the energy market if wholesale costs continue to fall”.

It is a fair assumption that the recent drop in wholesale gas and electricity prices should be passed on to consumers – we know commodity cost accounts for 45% of a domestic bill and similar for businesses, so surely consumers must feel the benefit of a price fall, and not just encounter the pain of an increase?

The decision whether or not to reduce customer prices should be based on a transparent set of facts and calculated risks, which suppliers, consumers and regulators alike can subscribe to, rather than the current situation where everyone is left wondering whether suppliers are playing fair.

However, the reality is far more complex and the issue runs far deeper within the suppliers themselves than a simple decision whether to pass on a movement in the wholesale cost of energy.

While it is true that a prolonged reduction in wholesale costs means overall supplier costs are reduced, the reality of suppliers’ data management means it is far harder for most to see actual customer-level costs and the margin contributed directly at this level – making it virtually impossible to calculate the risk of a price change and determine which customers are currently profitable, and which are not.

The majority of suppliers

“

This absence of detailed account-level data often forces suppliers to adopt a risky ‘one-size-fits-all approach’ are forced to determine price changes by reviewing the profitability of their retail business as a whole at hugely amalgamated levels, because they don’t have a detailed customer-level view on costs.

For example, not being able to reconcile the impact of long- and short-term energy purchasing decisions against customers’ actual consumption – has led to a poor (or non-existent) understanding of customer-level margin and overall profitability.

This absence of detailed

16 June/July 2014 | water energy & environment

account-level data often forces suppliers to adopt a risky “onesize-fits-all approach” across their portfolios. An inability to view energy purchased against energy sold at a customer level allows discrepancies to go undetected and drives inaccurate and inconsistent views of customer costs.

It is this inability to understand value at a customer level that makes the decision to pass through a price cut far more difficult as suppliers simply do not know which customers are value generating – meaning the very real risk of a large proportion of customers becoming loss making as a result of pricing decisions based on inaccurate assumptions.

Actual customer insight just doesn’t exist in a supplier world which came from a geographically regionalised approach, and since privatisation the

supporting data management infrastructure just hasn’t caught up. The root cause is the continued use of out of date, inadequate data management processes, which is preventing energy suppliers from using the mass of data available to them.

The data issue extends beyond pricing: the whole energy industry is reliant upon a large number of complex messages being passed between the various parties that are involved in getting energy across the network and to the homes and businesses that use it. Individual data flows detail every event against a meter, from changes of supplier to the recording of actual consumption data. These complex messages make up the information required by energy suppliers to manage a customer’s energy supply, so they know what has been used and therefore, in turn, how much their bill should be.

Precise customer billing, accurate forecasting and therefore reduced settlement risk all depend on accurate data, upon which decisions can be based.

If suppliers want to earn consumer trust and provide accurate billing, deliver better customer experience and fair and transparent pricing, they need to accept that current practices will not deliver this – but it is in their gift to change it.

The energy market has moved on. Customer expectation has moved on. And yet supplier practices have not yet caught up. It’s time to take some action, address and change the out-of-date practices that are holding them back. we&e ensek.co.uk

sponsored column

Energy sector faces rising pressures from climate change

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he energy sector is facing increasing pressures from climate change. All segments of the industry will be affected by the changing global climate and the policy responses to it, according to a briefing published jointly by the World Energy Council (WEC), the University of Cambridge Institute for Sustainability Leadership (CISL), the Cambridge Judge Business School, and the European Climate Foundation.

The briefing brings into focus the energy-related findings of the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5) for policymakers and business leaders in the energy sector. It identifies the need to incorporate climate change mitigation and adaptation measures into energy policymaking, infrastructure planning, and investment decisions.

The briefing, Climate Change: implications for the energy sector, reveals energy demand is increasing globally, causing an increase in greenhouse gas (GHG) emissions from the energy sector. The trend is set to continue, driven primarily by economic growth and rising population.

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Climate change presents increasing challenges for energy production and transmission as a result of temperature increases, extreme weather events, and changing precipitation patterns.

Significant cuts in GHG emissions from energy can be achieved through a variety of measures, including cutting emissions from fossil fuel extraction and conversion, switching to lower-carbon fuels, improving energy efficiency, increasing use of renewables and nuclear, introduction of carbon capture and storage (CCS), and reducing final energy demand.

Strong global political action on climate change would have major implications for the energy sector. Incentivising investment in low-carbon technologies will be a key challenge for governments and regulators to achieve carbon reduction targets.

Philippe Joubert, advisory board member for the Cambridge Institute for Sustainability Leadership, executive chair of the WEC’s Global Electricity Initiative, and former president of Alstom Power, comments: “The latest climate science is clear about the reality and impacts of climate change. This summary report helps business to understand the scale and urgency of the issues involved for the energy sector and should be seen as a call to action for the leaders of a sector which is responsible for over a third of CO2 emissions.

Leading businesses in this sector increasingly realise that business as usual is no longer possible nor acceptable.” we&e The report is available at worldenergy.org/news and is accompanied by an infographic which summarises the key findings

Keeping up with the evolution of boiler controls the principle of new technologies improving on or complementing old ones is well established, and is clearly illustrated in the evolution of boiler controls New technologies solve problems, increase efficiency and often give us greater control over day-to-day processes. And, in the main, each technological advance improves on the last to deliver better performance. This is certainly the case with retrofitted boiler controls, which have advanced considerably during the past 40 years.

1970s

In the 1970s, for example, “time delay” devices were introduced to try to prevent boiler dry cycling, where the boiler fires to replace heat lost through standing losses rather than in response to a genuine requirement for heat in the building or process. Unfortunately, these prevent the boiler from firing on the basis of a fixed time delay, rather than by temperature. Consequently, firing might be delayed even when there was a genuine need for heat in the building, resulting in suppressed temperature. Controls using a time-delay approach are still on the market and suffer from the same limitations.

water temperatures these devices cannot differentiate between boiler dry cycling and firing to meet a genuine demand for heat.

Consequently the boilers cannot respond to a genuine demand and comfort temperatures can be compromised. Some of these devices also use a timer to record how long the burner has or hasn’t been firing – presenting this as actual energy saving – which isn’t the case. They can also cause issues with weather compensation and other control strategies and are not compatible with emerging control strategies.

2000s

In the 1980s, the introduction of microprocessors enabled building management systems (BMS) and building optimisation, with a positive effect on the efficiency and control of heating in buildings.

These technologies have continued to evolve and, when properly commissioned and maintained, remain as the vanguard of boiler control in many commercial applications.

These issues led to a new approach to address dry cycling in the early 2000s – Intelligent Boiler Load Optimisation – in the form of Sabien’s patented M2G. M2G is unique in that it does not lower set points or the system’s average temperature. Instead, it uses real time measurement and analysis of both flow and return water temperatures to identify the boiler load specifically and whether the boiler is dry cycling or whether there is a genuine heating demand.

Furthermore, it is compatible with all current and future BMS. Indeed, the majority of the 8,000 M2Gs in use across Europe, the US and Asia are installed alongside modern BMSs. Analysis demonstrates average energy savings of 12% with payback approximately 18 months.

1990s

the future

1980s

Nevertheless, most BMS are not configured to detect or control the ongoing problem of boiler dry cycling directly, so the 1990s saw the introduction of “load compensation” or “burner management” controls. Many of these result in lowering the boiler’s design operating temperature by 2-5°C, using a single temperature sensor to monitor the boiler’s return temperature. Without monitoring both flow and return

There can be no doubt that buildings and their services will be expected to become ever more efficient in the future, in line with tighter energy consumption and emissions targets. Using the latest boiler controls, that also incorporate an element of future-proofing, is clearly the logical way to achieve greater energy efficiency.

For further information www.sabien-tech.co.uk

advertorial

Gas & ElEctricity

How can your energy supplier help you?

Rising costs, potential shortages. The quest for decarbonisation. Energy is a potential minefield for businesses – and never before has it had such a key strategic profile. Managers know they need to actively manage energy, from procurement to efficiency – but it can be difficult to know what measures need to be put in place, and what solutions are available. Happily, good energy suppliers can offer a great deal of support and smart managers are increasingly building this into their supplier selection processes, writes Mike Hogg, managing director, DONG Energy Sales

O

ne of the most impactful measures a business can take is to actively monitor consumption data and charges. By gaining a detailed understanding of when and how energy is used, for what processes and at what cost, operational decisions can be made to optimise resources. For example, by shifting the timing of industrial processes as far as is practicable so as to avoid peak times when energy prices are higher. Data can also help to identify anomalies, errors and opportunities for greater focus: ensuring equipment, lights and heating are switched off when not in use, for example. impact through supply partnerships Through the long-term partnerships DONG Energy enjoys with customers, it’s clear that organisations that continually strive for improvement will see a significant and sustained impact on both the carbon footprint and the bottom line. Information (data and intelligence) is key to that – whether it is market data, updates on the regulatory environment or detailed consumption and cost breakdowns. By tracking

energy consumption per unit of output, businesses can accurately predict energy usage, which enables suppliers to minimise the industry charges to be paid – resulting in lower costs. The same data can be used to identify inefficient practices, which is particularly crucial in energyintensive industries, where energy can easily account for around 25% or more of the total cost base.

The opportunities multiply as technological innovation (such as automated meter reading) facilitate unprecedented degrees of transparency. Basically, the more granular the data, the more dramatic the impact can be. The seemingly simple task of examining each unit of consumption can unlock valuable insights into wastage and inefficiencies – and how to minimise them. Obviously, advanced meter technology is making this data more accessible but it is also something that energy suppliers can and should help with – data solutions are a key part of the service requirement and customers should make sure they get what they need from their supplier.

Getting on the boardroom agenda Day-to-day energy

18 June/July 2014 | water energy & environment

management is vital but, particularly if energy is a significant portion of the total costs for the business, a long-term energy strategy is needed to achieve maximum efficiencies. This means understanding the role energy plays in the business and ensuring that the resources and processes are in place to manage it.

It means selecting a supplier that takes the time to understand your business and delivers a product that is the right fit. It means helping staff to understand what behaviours are

valued and incentivising them accordingly. It means having a clear and shared vision of the company’s short- and longterm energy reduction goals.

It means staying abreast with the regulatory and compliance environment and making the most of opportunities.

Here again, this is an area where suppliers should provide advice and solutions – ideally as part of a long-term partnership approach which can encompass data-based solutions, third-party arrangements, renewables investment and CSR support. dongenergyforbusiness.co.uk

theenergyst.com

By turning data into bottom line impact

“

The seemingly simple task of examining each unit of consumption can unlock valuable insights into wastage and inefficiencies – and how to minimise them

case study: Glatfelter US paper manufacturer Glatfelter is headquartered in Pennsylvania with a global reach including facilities in Germany, France, UK and the Philippines. The company has seen exceptional growth in recent decades and now employs about 4,200 staff. With a dual focus on environment and product diversity, energy is of strategic importance. Senior energy manager Jamie Lavis is responsible for procuring and managing energy supply, including for the company’s two UK locations.

He says: “As a manufacturing company, it is key that we can quickly access billing and consumption data in order to spot anomalies and make operational decisions The bills from DONG Energy are succinct and transparent, with all charges clearly identified. This is really important to me as I need to closely monitor that information in detail as, in addition to being an important financial accounting tool, it underpins our energy

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efficiency strategy. Invoices are always accurate and arrive on time.

“In addition, we receive comprehensive pricing and market data to help manage, monitor and measure the market and our position. This information is very valuable as it informs not only immediate hedging decisions but our decision-making going forward. On top of that, we also receive monthly information about the regulatory environment, market fundamentals, network code updates and revisions to distribution charges – those things aren’t always publicised a great deal and it’s not always easy to forecast.

“With this information, plus the support of an effective and professional account service team, we have everything we need to optimise our energy spend.”

June/Jul 2014 | water energy & environment

19

CertIfICatIon

Industry should act now on inefficient energy management policies BM TRADA says public and private-sector organisations risk major financial risk and reputational damage if they fail to improve energy efficiency

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nefficient energy management policies and management systems are leaving companies and public-sector organisations wide open to major financial risk, says international certification body BM TRADA. Spiralling energy costs, growing concern over energy security and increasing regulatory pressure to reduce carbon emissions are making the need for greater energy efficiency a

“necessity, not nicety” for all organisations, it says.

Heavy-energy industry sectors including transport, food producers and manufacturers, public sector organisations such as hospitals, schools and local authority buildings, energy companies and construction firms have the most to gain from overhauling their energy management procedures.

Failing to act could expose businesses to significant

20 June/July 2014 | water energy & environment

“

The potential savings to be gained from developing a comprehensive energy management strategy are huge

financial pressures and market uncertainties, as well as reputational risks, in the long term.

A spokesman for the international testing, inspection and certification body said curbing inefficient usage could save the UK industry sector billions of pounds in wasted energy.

It also has the very real potential of reducing industry’s global carbon footprint, which last year amounted to 75 million tonnes in the UK alone.

Tom Johnston, BM TRADA’s chief operating officer of Central Certification Services, said companies need to continue rising to the challenge of energy management.

Speaking at the launch of BM TRADA’s expansion into UKAS-accredited ISO 50001:2011 Energy Management Certification, following a successful pilot scheme, Mr Johnston said: “The cost of energy is rising rapidly, fuelled in part by growing concern over energy security, and it is the business and public sectors that are feeling the financial impact the most.

“At the same time, energy efficiency is now firmly on government agendas in a bid to tackle carbon emissions and wastage in the industrial sector is being met with increasingly heavy penalties.

“Outdated and inefficient energy management systems are not only costing companies more than they

Sponsored column

realise, running into millions of pounds, but are also leaving businesses and organisations wide open to financial and reputational risks which they can ill afford to deal with.”

The comments come just months after Sam Laidlaw, the chief executive of British multinational utility company Centrica, warned that the UK would be reliant on natural gas imports of 70% by 2020.

Governments and NGOs around the world are putting increasing pressure on the private and public sector to improve their energy efficiency and reduce their carbon footprint.

In 2013, the UK produced an estimated 463 million tonnes of carbon dioxide – the primary greenhouse gas and a major contributor to global warming – of which 16% was generated by the business sector.

Under the Kyoto Protocol, the UK government has a legally binding target to reduce emissions and since 2001 has operated a climate change levy to provide industry with an incentive to increase energy efficiency and reduce carbon emissions.

It has also introduced mandatory carbon footprint reporting for UK listed companies, with the potential for the scheme to be extended to cover all large corporations from 2016.

UK carbon dioxide emissions have decreased by about 21% from 1990 figures, but a study by the Carbon Trust has revealed that large UK businesses are still spending over £1.6bn on wasted energy each year.

And without greater corporate commitment to energy management, Britain risks missing legally binding targets to reduce carbon dioxide emissions by 80% by 2050.

Mr Johnston says that carbon taxes, wastage and increasing energy

theenergyst.com

costs – expected to rise by up to 25% for industrial users by 2020 according to government adviser the Climate Change Committee – make the case for ISO 50001 Energy Management Certification clear cut.

He added: “When you factor in carbon levies, rising energy costs and wastage, which the Confederation of British Industry estimates can account for between 10 and 20% of energy costs, the potential savings to be gained from developing a comprehensive energy management strategy are huge.

“In addition to bringing significant reductions in operational costs and protecting against energy price spikes, becoming certified to the ISO 50001 standard also ensures that a business is meeting the latest regulatory requirements, which sends out all the right messages to clients and the public about their commitment to energy reduction, best practice and sustainability.

“The new standard is easy to implement, is designed to cause minimal disruption and will help businesses to implement the processes they need to understand their baseline energy usage and establish a best-practice energy policy throughout the business, including plans, targets and KPIs for reducing energy consumption.”

ISO 50001:2011 is the international standard for energy management, providing an effective framework for improving energy performance, efficiency and consumption, and integrating this into management practices.

The standard integrates with, and complements, existing management systems such as ISO 9001 Quality Management & ISO 14001 Environmental Management. we&e bmtrada.com

four steps to effective energy management with ISo 50001 – step 2 Martin Hockaday, environment and energy sector manager at NQA, reviews the Plan, Do, Check, Act cycle of ISO 50001 and how it improves energy management

flexibility for documenting the EnMS. This could be paper or electronic records, but also signage, diagrams, flow charts and dashboards that communicate the objectives, actions and achievements of the EnMS.

In the last issue we looked at the first step of the Plan, Do, Check, Act model and focused on the energy planning process defined in ISO 50001. This article gives an overview of the second step, Do, or as ISO 50001 calls it, implementation and operation of an energy management system (EnMS).

It is worth remembering that ISO 50001 is applicable to any type and size of organisations, irrespective of industry, geography or culture.

Responding to this requirement will vary significantly from organisation to organisation. The fundamental aim is to ensure that energy policy, targets and action plans are implemented within operational and maintenance activities.

Implementation and operation This section of the standard has seven main requirements that turn the outputs of the energy planning process into action that is structured, communicated and where relevant documented. It is worth noting that documentation should be treated with pragmatism – where the standard requires documentation then it must be followed to achieve compliance, but it is unnecessary to create additional records unless they add value to your EnMS.

Competence, training and awareness This requirement applies direct employees and subcontractors who impact on significant energy uses, which are identified in the energy plan. Flexibility of training methods is given, but should be appropriate to the role, responsibilities, education, skills and experience of each individual. Whatever method, appropriate records are required by the standard.

Communication Communication is critical to the effectiveness of the EnMS, internal and external communication is required. It is expected that internal communication is a two-way process that considers suggestions for improvement of the EnMS. This is a key engagement activity.

Documentation ISO 50001 does not intend bureaucracy and provides good

operational control

Design Ideally energy efficiency should be designed into the EnMS to maximise its performance from the point of implementation. This requirement states that the results of design activities are recorded.

Procurement of energy services, products, equipment and energy Procurement has a significant impact cost, resource and efficiency.

It is specifically addressed and procurement processes must be established, documented, evaluated and communicated. Life cycle analysis should be considered in evaluation.

Summary This brief overview of implantation and operation should give a flavour for the nature of the requirements of ISO 50001 and demonstrate its flexibility. The key conclusion is that ISO 50001 provides a scalable framework that can be implemented in the most appropriate way to your organisation to provide continual improvement of energy management.

In the next issue of we&e, we’ll look at the Check stage of the process.

This essential step ensures that the EnMS is effective and continually improved. If you can’t wait until then you or if you want more information about implementing ISO 50001 visit www.nqa.com/enms or contact info@nqa.com

Viewpoint

A tool for improvement?

Energy Managers Association CEO Lord Redesdale asks if the new ESOS legislation will be another report that gathers dust on a shelf or if it will gain traction, achieve savings and raise the profile of energy further at board level

t

he government is placing Energy Savings Opportunity Scheme (ESOS) regulation in front of parliament on 26 June.

As you are reading this after 26 June and your organisation meets the criteria for compliance – having more than 250 employees or a turnover of €50m plus – you need to start thinking about how ESOS will affect your organisation.

The purpose of ESOS is to identify an organisation’s potential energy efficiencies though an audit of its estate and processes.

Organisations have to determine whether or not they are in scope by December 2014 and have completed the audit by December 2015.

The process will then be repeated every four years.

If you are a UKIP supporter ESOS is a horrendous imposition from the European Union on good old British energy inefficiency. If you are an energy professional, whether you vote UKIP or not, this could be a powerful and convincing professional tool.

On completion, potential energy efficiency measures need to get signed off by a company director. Energy efficiency, a subject that has been ignored by boards for far too long, will be placed in front of them by law.

Legislators at all levels are trying to push companies to becoming more energy efficient. To hit the target set by the EU for 2020, €60bn a year needs to be invested across the member states. The amount that is being invested at present comes nowhere near

meeting that target. The reality is that the no body can afford to subsidise this level of energy efficiency investment and therefore money will have to come from companies investing in their own buildings and machinery. This will become more pressing in large parts of Europe because energy security and supply issues will lead to a rise in the price of energy.

In Britain, commercial energy prices are projected to rise sharply as they have already done over the past decade. As a result, in a next few years boards are going to take energy efficiency much more seriously and this is why the ESOS is such a fantastic tool. Organisations will have a long list of useful energy efficiency measures to place in front of their board.

This all sounds great, you say, but how would the process work? Organisations are required to appoint a lead assessor to oversee the process. The competence of the lead assessor is determined in relation to the Publicly Available Standard PAS 51215.

The main issue that energy or facilities managers will have to take on board is that the whole process could be outsourced, but more importantly, could easily be kept in house. The lead assessor will have to show an understanding of the process. If there are areas of the audit that they believe they are not qualified to undertake then they can outsource that particular area to third parties.

The EMA will be launching a lead assessor course for those looking to become more rounded assessors.

22 June/July 2014 | water energy & environment

“

There is a little point in commissioning the best audit in the world if it is not ‘owned’ by those who have to fight for the investment from the board

If possible, in-house teams should control the process.

There is a little point in commissioning the best audit in the world if it is not “owned” by those who have to fight for the investment from the board.

Too often in the past energy audits have been undertaken and while the glossy pack is produced, it is often being ignored and left unread instead of being acted on. ESOS being owned by energy and facilities managers with lead assessor training is far more likely to appeal to gain traction.

The EMA will be holding free seminar sessions discussing the whole process at EMEX in November. we&e Lord Redesdale established the Energy Managers Association in February 2012 and it now represents energy managers from companies with a collective energy spend of about £3bn

theema.org.uk

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Monitoring & targeting

The online dash to save energy t-mac Technologies is set to change the management of buildings through interactive social media-based software, following the launch of SMART.DASH

S

MART.Dash from t-mac Technologies is a new, responsive web application that claims to be the UK’s first energy saving dashboard with a dedicated twitter feed.

It is designed to enhance energy-saving opportunities and encourage active energy awareness from employees.

SMART.DASH connects with the t-mac cloud displaying a building’s data, collected from areas such as meters, submeters, machinery equipment and renewables. It provides real-time energy insights with dynamic, intuitive and insightful views. The use of the latest web technology ensures that it is completely responsive and viewable on all devices from tablets to desktops and smart TVs to mobile phones.

A benefit of SMART. DASH is that it taps into an organisation’s own twitter account, allowing businesses to reach out through social media and educate occupants on energy saving at work while showcasing to customers.

It also features a league

table with benchmarking and KPI facilities, allowing comparisons to be drawn yearon-year or site-to-site to create a well-rounded energy view.

Lisa Gingell, director, t-mac Technologies, said: “Our research and the market’s appetite has shown us that what business big and small want is a completely customisable, and fully interactive energy management dashboard that will help them display their energy-saving efforts.

SMART.DASH goes some way in making this a reality.

“We believe SMART.DASH is the future for web application technology in the energy sector, because it harnesses the social media enthusiasm of all users and also works by empowering occupants with tips and advice. Ultimately, smarter occupants create greener buildings in the long term.”

SMART.DASH is suited to all markets and industries and can be incorporated into the current energy saving effort of hundreds of businesses, from large office developments

to small factories and retail units it can also be applied to the education sector and utilised within schools.

The completely customisable

SMART.DASH software can also be fully branded by the user to match their own brand guidelines. we&e t-mac.co.uk

Optimisation from data can lead to big savings Organisations across the UK are increasingly seeing the benefits of remote energy management as a smarter way to ensure the efficiency of their buildings and facilities. Matrix, acquired

by E.ON in 2013, has grown rapidly to become one of the UK’s market leaders in data-led energy management and efficiency services for commercial buildings.

24 June/July 2014 | water energy & environment

The combination of Matrix’s expertise in data analytics for buildings and E.ON’s on-site generation capabilities is helping blue-chip corporate and public sector customers to reduce their energy consumption by up to 40%.

The advanced metering and building energy management technologies provided by Matrix helps customers to control heating, lighting

and cooling. This can be done for an organisation’s facilities located across the world from Matrix’s central energy management centre (EMC) in Glasgow. More than 30,000 buildings are currently connected to the EMC, with customers able to monitor and control their energy use through a dashboard system. eonenergy.com/foryour-business

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vieWpoint

Making the most of an opportunity The official guidance for the Energy Savings Opportunity Scheme has just been published

by DECC, Richard Hipkiss asks if this will be a real game-changer

W

hile auditing is Yet estimates of achievable, a regular feature cost-effective savings remain of life for all stubbornly high both here businesses, the in the UK and more widely extension of this approach to across Europe. The European all aspects of the commercial Commission and the UK world – including “non-core” government routinely quote activities such as energy and figures of 20%, while ESTA’s environmental management – own evidence from members has been a long time coming. suggests the savings can Of course, for many actually be much greater. organisations, the These audits have to be measurement and complete under Phase 1 of the management of energy is a scheme by the end of 2015 long-standing feature of their and they must be based on a operational activities. Yet, full 12 months’ figures of at the lack of take-up in some least 90% of consumption, of the largest businesses has including the energy used prompted the European Union in buildings, for transport to take action in this area. The and in industrial processes.

Energy Savings Opportunity That does not leave much Scheme (ESOS) is now time for business to get reaching its final stage and organised: the deadline means will be published shortly if it that the accounting period has not already appeared by must start sometime this year the time you read this article. and, at the time of writing, ESOS is the UK’s we are already in June. “transposition” of Article 8 These energy audits must be of the EU’s Energy Efficiency undertaken, or approved, by Directive. It is a mandatory lead auditors. Organisations energy assessment and representing auditors “energy saving will be approved by identification” the Environment scheme Agency as for large the scheme organisations. administrator.

Non-SMEs However, it The estimated (only the is likely that net benefit of ESOS EA will not be private sector is involved, in a position to the UK although to publish its some universities list of approved could find themselves bodies much before included as well) will have the end of the year. to carry out regular audits If businesses want to get of their energy usage. started early, where can they It is astonishing that, in an go? Well, one place would be era of high energy prices and the Register of Professional global competitive markets, Energy Consultants. RPEC energy efficiency is not seen is operated jointly by ESTA as an essential element in and the Energy Institute. As any operational manual. an independently assessed

“

It is astonishing that, in an era of high energy prices and global competitive markets, energy efficiency is not seen as an essential element in any operational manual

£1.7bn

26 June/July 2014 | water energy & environment

register of experienced, qualified energy consultants, RPEC will be applying for inclusion on the EA’s listing (more details from www.esta.org.uk/rpec).

It is important to note that only qualified professionals will be able to carry out these audits. Clearly, if the audit is to be accurate and is to identify cost-effective savings, then it is essential to use people with the right experience.

Many businesses are already

in some form of auditing scheme, such as the EU Emissions Trading Scheme or the CRC Energy Efficiency Scheme. The monitoring and auditing procedures associated with these will be accepted for compliance with ESOS but it is unlikely that any of these schemes will cover the full range of activities covered by this latest scheme (such as transport energy for example). So it is likely that some additional auditing, as well as collating of data streams, will be necessary.

The government estimates that the scheme could lead to £1.7bn net benefit to the UK “with the majority of these being directly felt by businesses as a result of energy savings”. That does, however, rely upon organisations taking heed of the findings in the audits and taking action.

Earlier schemes – such as those run by the Carbon Trust – have not been especially encouraging, with implementation rates as low as 20%. Under ESOS, firms will have to pay for the audits so there may well be an incentive to recover the costs.

However, there may well need to be further incentives (either carrots or sticks) if the benefits to the UK are to be anywhere near the government’s figure. we&e Richard Hipkiss is chairman of the Energy Services and Technology Association. ESTA represents more than 100 major providers of energy management equipment and services across the UK esta.org.uk

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Viewpoint

Insulating paints: mere greenwash?

R

educing heat loss through some types of building structure – solid walls and single-skin roofs, for example – requires insulation applied to the surface, which can be disruptive and awkward and may encroach on the interior space. So one can see the attraction of insulating paint or paint additives. Is there any scientific basis to the claims made for them?

The effectiveness of thermal insulation depends on its thickness and its thermal conductivity, λ, which in SI units is stated as W/mK*.

Typical conductivities are: • Dry brick 0.8-1.2 W/mK • Expanded polystyrene 0.035-0.055 W/mK • New polyurethane gas-filled board 0.017-0.020 W/mK

So because expanded polystyrene is roughly twice as conductive as polyurethane board, one would need double the thickness of it to achieve the same insulating effect.

Each layer of a building structure has a thermal resistance R proportional to its thickness d and inversely proportional to its thermal conductivity, ie R = d/λ.

The thermal resistance of a complete structural element is the sum of the thermal resistances of each of its constituent layers. For example a cavity wall (see Table 1).

Note that the surfaces and cavity have some thermal resistance of their own. The U-value of the wall – the way thermal performance is usually expressed – is the reciprocal of total thermal resistance. In this case U = 1/0.664 ≈ 1.51 W/m2K If, in the example in table 2, we were to fill the 50mm cavity with fibrous insulation (λ =0.04), we increase the thermal resistance of that layer (shown in bold). This brings the overall

Vilnis Vesma tackles the issue of insulating paints and whether they can actually retain heat within a building table 1 layer

thickness d (m)

thermal conductivity λ (w/mK)

Plaster, dense

0.012

0.50

0.024

Brick, inner

0.100

0.62

0.161

Cavity

0.050

-

0.180

Brick, outer

0.100

0.84

0.119

Internal surface

thermal resistance R (m2K/w) 0.120

External surface

0.060 total resistance 0.664

table 2 layer

thickness d (m)

thermal conductivity λ (w/mK)

Plaster, dense

0.012

0.50

0.024

Brick, inner

0.100

0.62

0.161

Rock fibre

0.050

0.04

1.250

Brick, outer

0.100

0.84

0.119

Internal surface

thermal resistance R (m2K/w) 0.120

External surface

0.060 total resistance 1.734

table 3 layer

thickness d (m)

thermal conductivity λ (w/mK)

insulating paint

0.0002

0.40

0.005

Plaster, dense

0.012

0.50

0.024

Brick, inner

0.100

0.62

0.161

Cavity

0.050

-

0.180

Brick, outer

0.100

0.84

0.119

Internal surface

thermal resistance R (m2K/w) 0.120

External surface

0.060 total resistance 0.669

resistance up to 1.734 m2K/W giving a U-value of 0.58 W/m2K. To evaluate the effect of an insulating paint we will have to make some assumptions, firstly about its thermal conductivity.

I will base my estimates on a common type of additive called “ceramic microspheres”, which supposedly contain a vacuum.

28 June/July 2014 | water energy & environment

Although, as the advertisers are quick to remind us, heat cannot travel through a vacuum, it can of course travel through the walls of the spheres (which will have high conductivity and represent a substantial fraction of their cross-section) and through the pigment and binder around them. So let us say the paint has

λ=0.04 W/mK, which is similar to cork or cellular rubber.

What about the thickness?

An advert for one typical paint additive states the product, whose packaging has a volume of 1.3 litres, is added to 2.5 litres of paint to give a coverage of 18 sq m. This works out as an applied thickness before drying of 0.21 mm. Let’s be generous and say that the finished thickness is 0.20 mm.

Now in table 3 see what happens when, instead of cavity filling, we paint our unfilled cavity wall from the previous example.

The new U-value is 1/0.669 ≈ 1.49 W/m2K and the improvement is less than 1%. Hence claims that such treatments can save “up to 25%” are clearly misleading Some vendors claim that the ceramic microspheres reflect heat. However, any such claim must also be spurious because thermal reflection depends entirely on the paint’s surface finish. Unless the surface itself has very low emissivity – essentially, looking like a mirror to infrared radiation – it will absorb heat regardless of any additives within the paint itself. we&e This is one of a series of occasional papers discussing exaggerated or bogus claims for energy saving. For an introductory paper on the subject please email Vilnis@VESMA.COM with ‘BOGPROD’ in the subject line * this is the rate of heat transmission in watts through 1 sq m of the material when the temperature gradient through the depth of the material is one kelvin per metre (one kelvin, K, being equivalent to 1°C )

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HVAC

Top-flight energy savings Vickers Energy has signed a deal with the RAF Museum in Shropshire that will cut the energy consumption and the cost of heating its hangars by more than £25,000 a year

T

he RAF Museum in Cosford, Shropshire, which attracts 300,000 visitors every year, houses 70 aircraft in three hangars. Built in the 1930s, the hangars use gas-fired radiant tube heating – the largest of which costs £50,000 a year to heat.

Energy efficiency business Vickers Energy will install its energy management system to optimise the heating in two of the hangars – with a projected reduction in CO2 of 103 tonnes per year and a further saving of at least £9,500 a year for the museum.

The installation follows a successful project last year where Vickers delivered a system to regulate the heating in the museum’s Reduction in gas largest hangar. consumption at The system partnership with RAF has already Museum Cosford to manage RAF Museum allowed the its heating in the hangars Cosford museum to reduce more efficiently as they gas consumption by were becoming increasingly 28% and CO2 emissions by expensive to operate and consuming too much energy” 96 tonnes per year for the “Our system uses high 5,000 sq ft hangar – leading accuracy temperature sensing, to a saving of £14,000. moderating the temperature The RAF Museum Cosford to 0.1°C giving the museum is one of two RAF museums peace of mind that heating nationally and features systems are optimised, the world’s oldest Spitfire delivering significant and a Lincoln Bomber savings on its energy bill among its 70 aircraft. while ensuring the precious David Hilton, managing director at Vickers Energy, says: “Energy efficiency It’s saved us thousands of pounds a across every building in the year on our energy bill and we don’t UK is hugely important. We all have a duty to reduce our need to do anything to manage the carbon footprint and at the same time organisations are system ourselves or change how we work as looking to cut unnecessary an organisation costs. We’ve worked in

28%

“

30 June/July 2014 | water energy & environment

exhibits are protected.

Alex Medhurst, general manager at RAF Museum Cosford, said: “We’ve already reaped the financial benefits of having Vickers’ energy system in one hangar and it made sense to install it in the other two. It’s saved us thousands of pounds a year on our energy bill and we don’t need to do anything to manage the system ourselves or change how we work as an organisation.

“The team at Vickers worked alongside us to understand the nature of our work here and our requirements. It’s also reassuring to know that our reduced energy consumption is going towards a cut in our carbon footprint.” we&e vickers-energy.co.uk

theenergyst.com

Non-domestic RHI phase 2 extension The Heat Pump Association has welcomed the extension of the RHI and the inclusion of air source heat pump technology

T

he HPA (Heat Pump Association) has welcomed the announcement of the extension to the Non-Domestic Renewable Heat Incentive (RHI), which is a further demonstration of the hard work that trade associations, including the HPA, have invested in working with the Department of Energy & Climate Change and other agencies such as Ofgem.

This second phase of the non-domestic scheme significantly increases financial support for eligible ground source heat pump (GSHP) systems and, most importantly, now includes air source heat pumps (ASHP), which at 18 months since initial launch is long overdue.

HPA president Tony Bowen said: “This is a

clear demonstration of the commitment and resolve of trade associations including the HPA to work with DECC for the continued development and extension of the RHI schemes, in this particular case non-domestic.

“We shall continue our work post launch with both DECC and Ofgem to further extend and improve both the domestic and non-domestic schemes.”

It is widely thought that this long-awaited extension (Phase2) to the non-domestic scheme should go some way to help to redress the very clear imbalance in the scheme whereby biomass dominates the small and medium sectors and, as a result, has had tariff reductions for new entrants applied several times since initial scheme launch in

Non-domestic air source heat pumps are now entitled to RHI payments

November 2012. The increase in the GSHP tariff from 4.3 p/kWh to 8.4 p/kWh for the first 1314 full load equivalent hours (or 2.6p/ kWh thereafter – see www. heatpumps.org.uk for further explanation and an example calculation) and the first inclusion of ASHP

in the scheme (@2.5p/ kWh) will undoubtedly have a significant effect on the uptake of these technologies.

The only question is, will it be sufficient to grow the markets sustainably and/ or meet EU renewable energy targets? we&e. www.heatpumps.org.uk

Condensing boilers with energy features as standard

B

axi Commercial has launched its Paramount three range of highefficiency condensing boilers. There are six different outputs: 30kW, 40kW, 60kW, 80kW, 95kW and 115kW, with new cascade options up to 460kW. All products also come with a five-year warranty.

The boilers include a reliable heat exchanger with combustion system, which delivers high energy efficiency, as well a low NOx performance, contributing towards specifications that exceed Part L2 requirements.

Products also feature a newly developed control panel, ISR Plus, which offers full text

theenergyst.com

“

ISR Plus has inbuilt weather compensation, summer/winter changeover and time control facilities

display of operation status with inbuilt weather compensation, summer/winter changeover and time control facilities for heating circuits and domestic hot water. These controls can be used with compatible room thermostats or can be fully integrated with building energy management systems.

The outside sensor, which is supplied as standard, allows the heating flow temperature to dictate the heating demand of the building. This enables the overriding RGB room controller to shut down the boilers if the building meets the set-point temperature, ensuring temperature remains at an optimum level. The

controller also provides frost protection, optimum start/stop and night setback for heating and domestic hot water.

All components that require maintenance, such as the burner, are easily accessible from the front with optimised burning and suction silencers contributing to a quiet operation.

Boilers from the range can also be situated in a modular arrangement, which allows optimum system performance, regardless of variable demand brought on by influencing factors such as time of day, type of occupancy and external weather conditions. we&e baxicommercial.co.uk

June/July 2014 | water energy & environment

31

HVAC

Integrating to the max Integration of different heat sources within a heating system is becoming increasingly common.

Graham Rodd explains why design is the key to achieving maximum benefits

T

he benefits of including low-carbon heating technologies in new heating systems are well understood.

Not only other significant energy and carbon savings, this approach can also help to gain planning permission or BREEAM points.

However, it also poses a challenge, because different low or zero carbon (LZC) technologies may be used – such as heat pumps or solar thermal – and combined with conventional heat sources such as gas or oil-fired condensing boilers as back-up.

In such cases the key is to design the system so that the contribution from the boiler(s) is minimised. Surprisingly, this isn’t always the case – very often because the performance expectations of the LZC technologies are relatively low.

Consequently, the return on investment (ROI) calculation predicts an extended payback period that doesn’t satisfy the financial criteria of the project.

In our view, the default approach should be to design the system to take advantage of LZC opportunities and maximise their performance, thereby radically altering the ROI calculations and increasing the use of LZC technologies. In parallel, it’s important to maximise the efficiency of any conventional heating technologies being used in the system. To that

“

end, the hydraulic design and the control strategy of the project are both critical.

For example, pre-heating water with a heat pump or solar thermal system will raise the return temperature of the water in the system.

Therefore, if a condensing boiler is also being used, the amount of condensing will be reduced so that energy is potentially wasted.

The answer is to use a thermal store as a buffer with very good control of stratification. In this way, the different temperature layers are maintained and each heat source is used to maximum benefit.

Of course, the precise design will need to take account of the specific requirements of the project. Where there is a swimming pool, for instance,

In our view, the default approach should be to design the system to take advantage of LZC opportunities and maximise their performance 32 June/July 2014 | water energy & environment

it will act as a large heat sink with relatively low operating temperatures, so there may be no need for a thermal store.

Boiler/heat pump hybrids Given the considerable variation in solar irradiation levels in the UK, there tends to be more interest in using heat pumps as the LZC element of a project, and we have seen growing demand for hybrid boiler/heat pump units. Combined air source/ ground source heat pumps are also gaining popularity.

In our experience, how efficiently such systems work depends on how the system is configured around the bivalence point (that is, at what external temperature the system switches to alternative heat sources).

For example, in a typical scenario, the bivalence point for an ASHP may be at an ambient temperature of 5°C. Below this temperature the conventional approach is to switch to a boiler. An alternative is to work with a

variable bivalence point and a good control configuration to maintain an acceptable Coefficient of Performance (COP) while using the ASHP to meet part of the load and top up with the boiler.

Another example is with GSHPs, where the cost of excavating groundworks (typically about £1,000/kW) is often prohibitive, especially as each area of ground needs time to recuperate once heat has been extracted. One way to reduce costs is to also include an ASHP to reduce the running time of the GSHP, so that recuperation time is minimised, as is the extent of groundworks.

In our experience, running the ASHP when ambient temperatures are above the bivalence point will reduce groundworks by about 25%.

This figure rises to nearer 50% when the ASHP is used below the bivalence point to supplement the GSHP. we&e Graham Rodd is managing director of MHG Heating mhgheating.co.uk

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HVAC Softer landings for hydronic heating and cooling systems

The new FloCon Watchman from SAV Systems combines the proven benefits of commissioning modules with electronic monitoring to support “soft landings” for hydronic heating and cooling systems.

As such, FloCon Watchman provides visibility of performance at “zone level” rather than whole system level, so that problems can be quickly pinpointed and remedied. By operating in zones, it also makes effective sub-metering financially viable, compared with installing meters on each terminal unit.

SAV’s FloCon commissioning modules bring all of the control valves for a group of terminal units (eg fan coils, chilled beams) into one location. FloCon Watchman modules also incorporate SAV’s Watchman electronic flow measurement device. This enables continuous monitoring of flow rates, temperature differential (ΔT) and energy consumption for each zone of terminal units – thereby providing better visualisation and understanding of each zone’s performance than would normally be possible.

Each FloCon Watchman module includes a 2-port actuated control valve and a differential pressure control valve to ensure that all 2-port control valves operate with excellent authority. FloCon and FloCon Watchman modules are also available for use with hydronic systems operating with ultra-low flows. sav-systems.com

Implementation services accredited supplier

Industrial process heating specialist Babcock Wanson UK has been awarded the status of Carbon Trust Implementation Services Accredited Supplier for its Thermal Fluid Heating solutions.

The accreditation scheme uses the Carbon Trust’s 10 years’ experience advising UK businesses and public sector organisations on means of reducing their energy consumption. It makes energy efficiency easy by matching customers that need to implement energy efficiency projects with good quality, established, equipment suppliers that have a track record of delivering energy saving projects.

Babcock Wanson applied for accreditation as an independent verification of its commitment to providing energy efficient process heating solutions. The company provides a comprehensive range of thermal fluid heaters with integrated gas, oil or dual fuel burner to meet the needs of modern industry. A thermal fluid heater is a closed circuit, no-loss system, so heat loss is minimal, which makes it highly energy efficient. A typical energy saving when using a thermal fluid system can be as high as 20-50% when compared with the transfer of the same amount of heat using traditional steam boilers, especially for processes where the energy from the condensate cannot be easily recovered. Thermal fluid systems precisely match fuel input to plant energy requirements for high efficiency. With lower energy input demand comes lower total exhaust emissions, so there are also environmental benefits. babcock-wanson.co.uk

Air handling system for busy pub Responsive heating for The Leadenhall

Three Stokvis 1.5MW boilers fitted with Riello modulating burners have been supplied to The Leadenhall Building in the City of London to provide space heating throughout the building. Designed by Rogers Stirk Harbour & Partners, the 224m-high, 52-storey building has a distinct tapering shape. It is being constructed by Laing O’Rourke using building information modelling techniques and will incorporate retail outlets, a restaurant, two reception levels and 41 floors of offices. Plant rooms are located above the offices from levels 46 to 52.

The Stokvis Rex 160F boilers, fitted with Riello RS120 fully modulating burners, were selected by Crown House Technologies (CHt) working to a specification by consulting engineer Arup. More than 83% of the construction works for The Leadenhall Building took place off site.

In support of this strategy the boilers were delivered to CHt’s fabrication facility, where they were skid-mounted with pre-assembled gas and water pipework for ease of installation on site. They were then lifted into position on the 47th level of the building, arranged endto-end to make best use of the plant room space available. rielloburners.co.uk

34 June/July 2014 | water energy & environment

Air Design has supplied a bespoke unit for the busy kitchen of a food-led destination pub at Cams Mill in Fareham, near Portsmouth.

Part of the £90m Elta Group, which provides ventilation equipment around the world, Air Design supplied the AHU for installation by Corhaven Sheet Metal Fabrications of Poole in Dorset.

The pub, owned by Fuller, Smith & Turner, prides itself on serving fresh, locally sourced produce and ingredients in support of Hampshire’s growers and producers. The air handling unit, constructed at the manufacturer’s factory in Netherton in the West Midlands, provides fresh air to the kitchen. Air is filtered and then either cooled or heated by the use of a multiple stage packaged DX (R410a) heat pump coil, providing 140kW of cooling, depending on the ambient conditions inside and out, before being ducted into the kitchen and preparation areas. eltagroup.co.uk

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■ High efficiency pumps ■ Modulation ranges from 33 to 100% ■ Full renewables range including heat pumps, biomass, solar thermal, solar PV and CHP To see how Viessmann can help your project, please see our website or email us at, info-uk@ viessmann.com www.viessmann.co.uk deutscher

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Boilers & Burners

Joined-up boiler water treatment Veolia Water Technologies initiated a water treatment programme for maintenance and supply of equipment and conditioning chemicals, which resulted in boiler treatment costs reduced by 30%

F

or more than half a century, Tamoin has been developing capabilities in the provision of engineering services including operation, overhaul and maintenance of industrial plant. The company was originally established in 1956 in Spain, and is now active right across Europe and Central and South America.

Tamoin is involved in most industrial areas, including chemicals and petrochemicals manufacturing, natural gas production and power generation. At Cargenbridge in Dumfries, Scotland, Tamoin UK manages a boiler facility that is owned by Scottish Power and supplies steam to the adjacent DuPont Teijin Films factory. Tamoin has outsourced the boiler water treatment to Veolia Water Technologies, formerly known as ELGA Process Water.

The Cargenbridge plant has four 17bar shell boilers supplying an average 14 tonnes per hour of steam, 50% of which is returned as condensate. Make-up water for the boilers is taken

“

Veolia Water Technologies was able to offer a complete bespoke package covering the filter, softener, reverse osmosis plant and the supply of chemicals

36 June/July 2014 | water energy & environment

from Scottish Water’s local mains supply, which has total dissolved solids (TDS) concentration of about 150mg/l and total hardness about 60mg/l CaCO3. The mains water is treated by filtration, softening and reverse osmosis to produce a soft make up water of TDS around 10mg/l and this is blended with the returned condensate. The resulting feed water is then conditioned with chemicals including an oxygen scavenger, alkali for pH control, a phosphate based scale preventative and a volatile amine for condensate neutralisation.

The treatment plant was originally supplied and serviced by Veolia Water Technologies, but chemicals were supplied and monitored by another specialist. This meant that there were two companies involved in maintaining boiler water quality, with the potential for uncertainty over responsibility. There was clearly a significant advantage to Tamoin in having a fully “joined-up” approach with a single point of responsibility.

As one of few companies with in-house capabilities in both water treatment plant and conditioning chemicals, Veolia Water Technologies

was able to offer a complete bespoke package covering the filter, softener, reverse osmosis plant and the supply of chemicals from its Hydrex range. In addition to service support for all equipment and chemicals, this package also includes the support of a Hydrex service technician to provide weekly visits to test the boiler water and make any necessary adjustments to chemical dosing to control boiler water conditions in accordance with BS2486.

The contract also includes boiler log book maintenance, operator training, technical support and attendance at annual boiler inspections, as well as annual servicing of the filtration, softening and reverse osmosis plant. Chemicals are delivered in intermediate bulk containers and pumped over into existing storage facilities.

Tamoin’s site manager, Jason Candlish, is pleased with the consistent results from the new servicing regime.

He has a single point of contact for all his boiler water requirements and by having a stronger presence on site, Veolia Water Technologies is able to maximise efficiencies and fine tune chemical usage.

Its weekly visits also provide a means of monitoring the performance of the treatment plant and optimising its performance. Not only does this provide an holistic approach to boiler water side operation, but the improved performance and reduced administration has resulted in a 30% reduction in costs by comparison with the original operating regime. we&e veoliawatertechnologies.co.uk

theenergyst.com

Now in Nominal Diameters DN 15 to DN 150 Belimo Energy ValveTM. Know where the energy is going.

Measuring, controlling, balancing, shutting and monitoring energy – the Belimo Energy ValveTM combines five functions into a single installationfriendly unit. Also unique are functions such as Delta-T manager or the possibility of direct power control. This provides clarity, increases efficiency and cuts costs.

• Quick and certain dimensioning, simple commissioning • Time-savings through automatic, permanent hydraulic balancing • Ensuring the correct volume of water with differential-pressure changes and partial loads • Transparency with respect to energy consumption for heating and cooling Water is our element: www.belimo.co.uk

BELIMO Automation UK Limited, Shepperton Business Park, Govett Avenue, Shepperton, Middlesex, TW17 8BA, Tel. 01932 260460, Fax. 01932 269222, E-mail. sales@belimo.co.uk

ATC Advert_Layout 1 08/01/2014 10:20 Page 1

Boiler Temperature Sensors ATC Semitec have now added a series of temperature sensors for use in gas boilers and electric heating appliances to their wide range of temperature probes. These sensors are also suitable for a variety of temperature sensing applications where a neat, costeffective solution is required.

Insertion, screw-probe, gasket and clip-on sensors are all available with the main thermistor resistance values used in the boiler industry; 5kohm, 10kohm and 12kohms. Both brass and nickelplated housings are available with 1/8”BSP gas threads. Integrally-mounted connectors are based on industry standard 2.5mm pitch terminations.

The pipe-clip sensors are IP67 rated and cover a wide range of pipe diameters from 13~28mm.Very simple to install, they clip securely to the relevant pipe diameter giving a typical response time of less than 1 second.

These clip-on temperature sensors are rated for use from -40/+140ºC continuously with an accuracy of ±1ºC at 25ºC.

Call today for samples and application advice ATC Semitec Ltd Tel: 01606 871680 Fax: 01606 872938 E-mail: sales@atcsemitec.co.uk Web: www.atcsemitec.co.uk

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

Transparent system monitoring Products from technology company Belimo are playing a central role in a pilot project in Macedonia to investigate potential heating energy savings

T

kWh to actual requirements and he Belimo Energy Valve 180,000 energy consumption can and room controller 160,000 be reduced significantly.

CR24-B1 are the The optimisation of key components in 140,000 the heating periods and a Macedonian pilot project 120,000 temperatures with the aid of in Skopje to determine the 100,000 the Belimo Energy Valve led energy efficiency of buildings.

80,000 to energy savings of ≥ 30%, as The experimental set-up 60,000 could be seen on the invoices at the Institute of Forestry 40,000 of the local heating supplier was able to demonstrate that, 20,000 (Balkan Energy Group BEG). with the implementation 0 The specifications of the of meaningful renovation February* March April** EU Directive 2012/27/EU measures, consumption of Energy consumption 2012 (BEG) were fulfilled. The customer primary energy could be has transparent energy reduced by 20% by 2020 Energy consumption 2013 (BEG) Energy monitoring 2013 (Belimo Energy Valve) consumption values at their in comparison with the disposal at all times and can expectations projected for 2007 * The clear imbalance between these consumption values is project budgeting for the – as outlined by the 2012/27/ probably due to the fact that the actual energy consumption in coming heating season.

EU Directive. With the Belimo January 2013 was not recorded. The energy supplier had charged a After three months, the Energy Valve, also the current flat-rate amount for this period and then corrected it once again in evaluation of the energy energy consumption values and February 2013 consumption values revealed the optimisation potential of the ** BEG values not yet available at the end of the experiment considerably improved system are known at all times. economic efficiency for controller CR24-B1 (master In addition to forestry at all times, in contrast with the converted heating controller with PI response) subjects, the institute at the St the retrospective invoice system, see table below. that is installed in a reference Cyril and Methodius University data of the operator. room. The nominal room also performs research on Customer satisfaction temperature of 21°C was aspects of environmental and Belimo’s solution After the heating period was lowered to 16°C on weekdays energy efficiency. In the case of These customer requirements over, the experimental results after 3pm and on weekends. this pilot project, the intention correspond to the features of achieved with the Energy Valve From 7 February to the end was to investigate the Belimo Energy Valve. It at the Institute of Forestry were of April 2013, the Energy Valve potential heating measures, regulates, analysed and presented to the used sensors to continuously energy savings in balances and saves university’s management. measure, balance and control the institute’s all measurement Vice-rector Nikola Vasilevski the flow and temperature own building. values. Because emphasised the use of modern, values in the supply and The basis a web server is energy-efficient technologies return lines. With transparent for the integrated in the Energy savings was of great value. He would energy monitoring it was experimental valve actuator, achieved with the like not only to continue possible to analyse where set-up was the data can cooperating with Belimo in and how much energy in the the ISO be viewed and Belimo Energy this area but extend it further. heating system was being 50001:2011. analysed for a Valve Based on this pilot, the plan used. The optimisation Two points period of 13 months is to roll the project out across potential was quickly were defined through any internet the whole university. we&e determined: the available as conditions: connection with the Belimo www.belimo.co.uk energy can be used according • energy consumption can Energy Valve tool. The twobe analysed and regulated way control valve that was The customer has transparent in accordance with work previously used in the primary conditions (working part of the heat supply facility energy consumption values at their hours, working days, was therefore replaced with room temperature etc); the Belimo Energy Valve in disposal at all times and can project • the energy consumption of the DN65 dimension. The budgeting for the coming heating season the current month is known valve is controlled with a room

30%

“

38 June/July 2014 | water energy & environment

theenergyst.com

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21/01/2014 14:44

Lighting

Read all about it…

At its distribution centre in Glasgow, the Daily Record has opted for HILUX lighting from Tamlite – an energy-efficient luminaire that is robust and reliable enough to cope with the harsh weather conditions that affect the industrial unit

A

s a leading Scottish newspaper, the Daily Record is bought by an average of 253,500 people, which means its distribution centre has heavy demands to meet. Hundreds of lorries pass through the distribution centre to collect the newspapers and deliver them throughout Scotland.

Yet the lighting within the distribution centre had become a cause for concern.

The existing light fittings were not enclosed, making

tamlite’s hilux Lighting offers a weatherproof, long-term solution

them vulnerable to the harsh Scottish winters. A new, weatherproof lighting solution was needed to keep the distribution centre properly lit and running at full speed.

“We discussed the problem with our local branch of City Electrical Factors and considered our options,” comments David Beagan, chief

engineer at the Daily Record.

“We’d used Tamlite lighting products before – they’ve been installed elsewhere in our factory and to light the outside of the building. We decided Tamlite’s HILUX product fit our specifications best.”

The Daily Record’s maintenance team installed 44 of the HILUX units – a

straightforward installation process that did not disrupt the day-to-day running of the distribution centre.

HILUX is a shallow-profile, high-performance luminaire for long-lasting, energyefficient fluorescent lamps.

Each HILUX light fitting is fully enclosed, making them robust enough to function in cold and weather-beaten industrial environments.

“The light quality from the HILUX product has been very good,” comments Mr Beagan.

“We’re pleased with the overall quality of the Tamlite lighting.

It has really met our needs as a weatherproof, long-term solution for the distribution centre. Now we know we’re getting good, energy-efficient lighting – without the maintenance worries.” we&e tamlite.co.uk

International growth for High Technology Lighting High Technology Lighting, supplier of energy-efficient lighting solutions for retail and commercial spaces, has experienced substantial international success in the past six months, after expanding its international operations as part of the company’s longterm growth strategy.

The company has supplied fittings to Kuwait, Cyprus, Poland, Czechoslovakia, Belgium and Russia directly, as well as to Sweden, Australia and the UAE through distribution partnerships.

The job in Russia was a particular highlight for High

Technology Lighting, with the company supplying 120 of its Quartet Uno fitting to a church. The fitting incorporates leading LED technology from Xicato’s Artist range, a favourite of museum curators as the module gives off a natural level of light and is perfect for use in buildings with high ceilings, great also for a church.

Thomas Holgeth, joint managing director of High Technology Lighting, says: “We are extremely pleased with our international success over the last six months. The installation of our technology

40 June/July 2014 | water energy & environment

in the church in Russia was a particular high and the new lighting looks fantastic. We are looking forward to similar jobs throughout the rest of 2014 across the world.”

High Technology Lighting’s Quartet LED range is, by all reports, the most compressive product offering of its type in the world. hightechnologylighting.com

the Quartet Uno installed in the church in Russia

theenergyst.com

MBA cock-a-hoop at savings An installation of Goodlight LED lighting for the Malta Basketball Association has resulted in dramatic savings and reduced energy consumption

t

he Malta Basketball Association (MBA) is achieving energy savings of 75% following the recent installation of Goodlight LED lighting at its new training pavilion.

Designed and made by LED Eco Lights, the new system was supplied and installed

by INLED, the company’s exclusive distributor in Malta.

With a number of basketball clubs in Malta catering for both male and female players, ranging from under 14s to national level, it was clear there were insufficient fullsize courts to meeting the growing demand. Accordingly, the association decided to invest in the construction of a pavilion alongside the existing national stadium to accommodate two modern, full-size basketball courts.

Following thorough evaluation of the lighting needs and a tender process, INLED was commissioned to supply Goodlight 100W LED high bay lighting. The

Courting success: the MBA is achieving savings of 75%

system relies on a series of fittings installed at a height of 10 metres above the playing surface.

The MBA had originally planned to use traditional 400W metal halide fittings for the new pavilion but were so impressed by the performance simulation and fast payback calculations provided by INLED that the decision was made to specify the Goodlight LED solution.

“This project was crying out for Goodlight,” says INLED managing director Saviour Bone. “We were easily able

to demonstrate that we could achieve 75% energy savings and full payback within two years without compromising on the quality of lighting. In fact, Goodlight LED high bays provide superior brightness to the metal halide alternatives that consume four times as much electricity. Also, because Goodlight LED fittings and lamps are maintenancefree and guaranteed for five years against failure, enormous savings are made by not having to use expensive access equipment to replace failed lamps.”

Flying the flag for NEW Energy Saving Controls DANLERS UK manufactured, high quality, cost effective products are ideal for the automatic control of lighting loads and come with a 5 year warranty. Contact us for more information, a free catalogue or where and when to see our products in action:

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Another aspect of the Goodlight LED high bay lamps is their “instant on” feature. Traditional metal halide lamps need to be turned on for a period of time before reaching the correct temperature to provide adequate illumination.

Goodlight can be turned off at any time, for any reason, and will provide immediate brightness at the flick of a switch.

Goodlight LED’s typically consume between 70% and 75% less energy than their traditional counterparts, with no reduction in lux levels and with a lifespan that is at least five times longer.

The Goodlight LED range is an ideal alternative to traditional tubes, spot lights, CFL PL lamps, 2D lamps, SONS, metal halides and floodlights to dramatically cut energy consumption, reduce costs and ensure compliance with new legislation being introduced around the world. we&e ledecolights.com

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DANLERS Limited, DANLERS Business Centre, Vincients Rd, Chippenham, Wiltshire, SN14 6NQ Tel: 01249 443377. E-mail: sales@danlers.co.uk Fax: 01249 443388. www.danlers.co.uk

June/July 2014 | water energy & environment

41

LiGhtinG

BMW drives sustainability BMW has reduced its energy costs thanks to a new lighting control system. Jürgen Pfeifer, system advisor for industrial automation at WAGO Kontakttechnik, explains

G

erman motoring giant BMW is making a lighting control system that has lowered its energy costs by about 30% and is based on WAGO components a company-wide standard.

Munich-based BMW has been a permanent member in the “Dow Jones Sustainability Group Index” since 1999. And to ensure that it will continue to be part of the stock index for companies exercising sustainable business practices in the future, it is continuously working on programmes for active energy optimisation.

Building lighting under scrutiny Substantial optimisation had already been achieved in this sector in the recent past using a new central I&C (instrumentation and control) system. The next logical step was then to modernise the hardware at the automation level. And this had to be done implementing a solution that can be used both in newly constructed production facilities, which are equipped in the field with DALI and EnOcean, and in

be illustrated on screen via WAGO Web visualisation, which can then be controlled individually, in the same manner as physical rooms.

For BMW production facilities this means that lighting can be optimally adapted for construction work or building re-assignment with only a few clicks of the mouse.

The lighting distribution connectors standardised Reduction in BMW’s

by BMW energy costs using have proven two-fold themselves in positive new system more than 100 results; energy installations at costs and the locations within the expenses associated corporate group. Simple with engineering can configuration of the WAGO both be markedly reduced. control system via an internet The basis for this is the browser has reduced the WAGO-I/O-SYSTEM 750 commissioning time for each Ethernet controllers, which are lighting distribution connector installed in the local control from several days to only a cabinets in the production few seconds. Relays can be facilities with I/O modules installed and removed with for DALI, EnOcean and just a few turns of the hand standard analogue and digital using pluggable sockets. inputs and outputs. They Replacement of the exercise control over each hardware is the only and every electronic ballast. activity that still needs to be This allows the lighting to performed manually at BMW, be automatically dimmed in stresses Mr Tratzl. He says: accordance with the defined “Since the WAGO Ethernet lighting planning, yielding controllers communicate energy savings while fulfilling directly with the plant strict operational requirements management software, at the same time. A further this enabled us to nearly advantage is also achieved perfect this workflow. The using DALI: instead of having exact position of defective to activate entire circuits, lighting is reported, so-called short addresses are operating hours counters used to control each individual are reset after replacement light. The individual control of the components and the nature achieved using this brightness levels are adjusted system can be used to combine automatically.” we&e short addresses into groups, wago.com enabling virtual rooms to

30%

retrofit projects in which the existing, conventional technology is to be retained.

The fact the two technologies, ie old and new, can be easily combined was a reason for BMW’s Jörg Tratzl, the responsible electrical systems planner, ultimately deciding on components from WAGO. Another reason was the user-friendly handling that WAGO developed for BMW for controlling I&C operating devices.

The new lighting distribution connector puts focus on the needs of the end user. In contrast to the lighting distribution connectors used up to now, the electrical installation specialist does not have to perform complicated programming, neither during commissioning, nor during his everyday work. Instead, the area-oriented software can be adapted to individual needs using only the parameter settings – and this via the graphic user interface with any Internet browser. This saves time on the one hand and also eliminates the need for additional know-how; with

42 June/July 2014 | water energy & environment

theenergyst.com

Wire in and clip on to the revolution in lighting control!

Improving your building’s lighting energy use is difficult enough when you’re up against time, cost and sensitive building fabrics. At CP Electronics we’ve developed EBMINT – Miniature INTegrated presence detectors which can be retrofitted to louvre blades, clipped to T5 or T8 fluorescent tubes or fixed directly.

Whatever your application we have a solution.

EBMINT BENEfITs ● ● ● ● ● ● ●

Can save up to 60% on lighting energy costs* Sensitive movement detection up to 7 metres Available in switching or dimming modes Quick to set up via infrared handset control Suitable for LED, CFL and linear fluorescent Integral power supply – just wire into ballast UK design and manufacture with 5 year warranty

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on typical usage and optimal set up.

Call us today on +44 (0)333 900 0671 or visit our website www.cpelectronics.co.uk

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17/02/2014 15:16

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LIGHTING

Interacting with interoperability Connected systems with open control protocols provide the flexibility to integrate different systems for maximum performance and efficiency. Stephen Woodnutt of Delmatic explains

W

hen it comes to optimising energy performance, the way that equipment is controlled and connected with other services is important. This is true for all building services systems – and perhaps especially the lighting, heating and ventilation.

The choice of control system is critical in achieving the required levels of performance and functionality. However, it is important to be aware that not all control systems are equal, so the design and application of the system needs to be aligned to the requirements of the project. This may involve enabling different systems within the building to work with each other and complement each other’s performance. For example, the ability of the lighting management system to connect, interact and share information with other systems in the building can deliver significant savings in energy consumption, as well as improved comfort.

A lighting management system typically has presence or absence detectors located throughout a building. The sensors monitor occupation and relate lighting to use of individual areas, yet these same sensors can share this data with other connected systems. No longer do buildings need to be uniformly lit, heated or cooled. Instead, the lighting network creates an interactive map of usage so that energy is applied efficiently, economically and sustainably.

Connected systems are easy and cost-effective to achieve and yet there are still far too many buildings where

Open, interoperable systems offer choice and greater simplicity

the various sub-systems – lighting, power, HVAC and life safety – all operate separately or have limited abilities to communicate though custom, hard-to-maintain gateways.

Open protocols make it simple for systems such as lighting, window blinds and comfort cooling to work together to achieve the best balance of comfort and energy consumption without a price penalty. Products using proprietary protocols can only interface in a limited way through gateways, yet products and systems using open protocols can share

“

Open protocols make it simple for systems such as lighting, window blinds and comfort cooling to work together

44 June/July 2014 | water energy & environment

networks, share hardware and share knowledge.

Furthermore, by conforming to published standards, devices from various manufacturers become instantly interoperable – which means they can work seamlessly together on a network without needing gateways to translate the data.

On the subject of cost, there is a common misconception that interoperability is more expensive than using closed systems. In fact, a number of projects have illustrated that open systems not only achieve substantial savings over the lifetime of a building but also provide initial capital costs savings compared to proprietary systems.

Another benefit of open protocol systems is that they are fully scalable so it is easy to extend or reconfigure systems in relation to changes in building usage – or to add extra functionality as new technologies become available.

This element of “future-

proofing” is invaluable as it enables buildings to maintain the levels of efficiency they were originally designed to achieve throughout their life. As many readers will be aware, it is an unfortunate fact that the energy efficiency of the building often decreases significantly within a few years, or even months, of it being occupied.

Also, the intelligence in open protocol systems is distributed and data is stored in each module or device, so there is no reliance on central points or outstations.

It is worth noting that, beyond the integration issues, a “closed” system also carries the risk that the manufacturer will withdraw support in the future. This is not the case when open protocols are used.

For example, when the lighting control modules at a global financial services provider in the City of London failed, the building owner discovered these units were obsolete and support had been withdrawn by the original manufacturer. Delmatic was able to offer replacement modules that provided the same control features, connected to the existing system buswire and exploited the benefits of open protocols by forming an interoperable part of the original installed system.

Fundamentally open, interoperable systems are also about choice and greater simplicity. Not only do they avoid the issues described above, they also free building owners from being locked into lengthy and costly service and upgrade agreements from a single vendor. we&e delmatic.com

theenergyst.com

Lighter side of emergencies When selecting emergency lighting it is important to be aware of the latest developments. Mackwell’s James Beresford explains

M

any readers will be aware of recent technological advances that have influenced the selection of general lighting, but perhaps not so aware of similar advances in emergency lighting. Wider use of LEDs probably won’t come as a surprise but automatic monitoring and testing, as well as wireless communications, also have an important role to play.

The basics, however, remain the same. Fundamentally, the role of the emergency lighting is to come on automatically when the building experiences a power outage, ensuring there is sufficient light for people to find their way around safely.

Perhaps one of the major differences between general and emergency lighting is that in the latter energy efficiency is a secondary consideration, with safety being the principal function. Nevertheless, the adoption of LED light sources for emergency lighting has enabled the power consumption of these systems to be reduced, though the main financial savings arise from the introduction of automated systems that simplify monitoring, testing and ongoing maintenance.

There are also aesthetic benefits. Unfortunately, in the past compliance with emergency lighting legislation has often achieved at the expense of the aesthetic appearance system. However, many luminaire manufacturers are now introducing standalone LED solutions that complement their general lighting products so that

theenergyst.com

the harmony of the visual appearance is maintained across all of the lighting.

Monitoring and testing Maintaining a compliant emergency lighting scheme is often overlooked by building owners but it is just as important as a fire alarm system. There are legislative directives for emergency lighting that are implemented by building control officers and emergency lighting is a legal obligation. Some buildings require a licence from local fire authorities and maintenance and testing log books must be kept.

Using a self-test or reporting system reduces the burden of monitoring and testing the emergency lighting system.

The introduction of selftesting emergency luminaires was the first step in making compliance easier by routinely testing the fundamental aspects of the emergency lighting luminaire and reporting status using a visual indicator such as a flashing LED. However, these self-testing emergency light fittings still require someone to walk around and check the individual indicators. The latest products take automation a step

further by centralising the monitoring and testing of emergency lighting. There are proprietary systems available but I would recommend using DALI

Although a legal obligation, emergency lighting can still complement general lighting schemes

as it is the most commonly used protocol for general lighting schemes as well.

These systems can be operated with or without a permanent connection to a computer. For relatively small standalone sites there is generally no need for a permanent connection, just the ability to connect one for configuration, viewing and printing reports will usually be sufficient. In larger buildings, or for monitoring

A Mackwell mains driver

multiple sites, a permanent software interface is ideal.

This will flag up faulty light sources, batteries and components so that any issues can be quickly remedied.

While there is clearly a nominal monetary cost associated with installing a monitoring system, there are clearly significant savings in cost of ownership when compared with the cost of employing someone to visually monitor each luminaire individually.

The underlying principle for addressing all of these issues is to include emergency lighting early in the specification process and look carefully at the required functionality and the elements – including the emergency lighting components – that will deliver the required performance. we&e mackwell.com

June/July 2014 | water energy & environment

45

Lighting LEDs reduce costs and carbon for school E.ON has worked with Chipping Norton School to help it reduce energy costs and carbon through a phased LED lighting refurbishment programme. It replaced 460 inefficient lights with LED luminaires specifically tailored to suit educational environments.

Consuming significantly less energy with a longer life, this resulted in more than £8,000 of annual savings including 33.8 tonnes of carbon while providing a whiter and brighter quality of light for staff and students. Daylight and motion controls were also installed where needed enabling greater usage control and energy savings.

Much ado about lighting Theatres and performing arts venues have expressed concern about new EU laws restricting supplies of traditional incandescent bulbs, saying they are vital to ensure tailored production lighting. E.ON worked with Nottingham’s Royal Concert Hall to replace its auditorium lighting with a more efficient LED system.

The solution saves more than £16,000 annually in energy bills and maintenance costs, delivering carbon savings of 104 tonnes. The system requires minimal upkeep after installation adding further convenience and cost savings.

The pioneering solution designed by E.ON with Projection Lighting and DES Electrical saw more than 500 old-style incandescent light fittings replaced with energy efficient, longlasting LED alternatives while simultaneously meeting the style and artistic requirements of the concert hall’s auditorium. eonenergy.com

top marks for Delmatic at University Delmatic is supplying a DALI lighting management system for the University of Greenwich’s new School of Architecture, Design & Construction. The system enables individual addressing, switching, dimming and monitoring of DALI luminaires, in conjunction with presence-related and daylight-linked control of lighting groups from DALI presence detectors and multisensors.

The 16,500 m2 Stockwell Street development comprises two linked buildings with internal courtyards allowing daylight and natural ventilation into the spaces. The buildings are designed to achieve high standards of sustainability to meet the criteria of BREEAM “Excellent” and incorporate elements such as energy-efficient systems, solar panels and “living roofs”.

Lighting is controlled throughout the building, using different control strategies in different areas. Many of these areas use suspended luminaires, with Delmatic’s DALI buswire modules enabling individual addressing, switching and dimming of the luminaires via a common Dali buswire. DALI multisensors and presence detectors are installed throughout DALI scene-set panels are used extensively to provide local scene selection and adjustment of lighting levels. Solenoid water valves in the toilets are switched via a Delmatic DALI One Relay which relates water use to occupancy of toilets. delmatic.com

46 June/July 2014 | water energy & environment

Reliability with simplicity LCI TEC series LED control gear from Tridonic has been designed to meet customer requirements at a competitive price. Three wattages are available as built-in or surface-mounted versions, all sharing the same product characteristics. This diversity of devices means that the TEC series can be used with a wide range of spotlight and downlight applications. The lifetime of the devices has been designed to meet the typical requirements of shop, hotel and office lighting. At an ambient temperature of 50°C the lifetime of the control gear is 30,000 hours, rising to 50,000 hours at an ambient temperature of 40°C. The control gear is initially available in 20W, 35W and 65W versions.

Depending on the wattage, different versions are available for operating currents from 350 mA to 1750 mA: • the 20W version for 350 mA, 500 mA and 700 mA; • the 35W version for 350 mA, 500 mA, 700 mA and 1050 mA; • the 60W version for 700 mA and 1050 mA; and • the 65W version for 1400 mA and 1750 mA. On the surface-mounted 35W, 60W and 65W versions the power connections can be looped through.

In addition to ENEC and CE approval, they offer excellent EMC behaviour. The high-quality cable clamps on the surface-mount versions make installation quick and simple without the need for tools.

The TEC series therefore combines impressive Tridonic quality with an attractive entry price. tridonic.com

high bay PiR detector for industrial use

CP Electronics’ EBDHS-MB luminaire mount high bay PIR presence detector range provides high sensitivity and long range detection, sensing movement up to 40m at a 15m mounting height. The detectors are ideal for high bay lighting control in areas with demanding spaces and increased mounting heights such as warehouses and factories, and are simple to retrofit to commercial luminaires and basic battens.

The EBDHS-MB detects movement using its PIR sensor, automatically switching lighting on and, when the area is no longer occupied, switching lighting off after an easily adjustable time out period. All functionality is fully programmable via an infrared handset. The detectors are available in three options: switching (PRM), Direct Dim (DD) and analogue dim (AD), all of which will switch incandescent, fluorescent, compact fluorescent and LED light sources. The direct dim model will control DALI or DSI digital dimming ballasts and the analogue dim is designed for variant control 1-10V dimming ballasts.

The EBDHS-MB is IP65 rated as standard and therefore ideal for outdoor use as well as wet and wash-down areas. A selection of fixing washers are supplied as standard to aid fitting to a variety of luminaires. cpelectronics.co.uk

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OutsOurced energy ManageMent

Lessons in energy reduction Pupils and teachers at an independent school in Dorset have taken an innovative approach to reducing their energy consumption and carbon footprint using a finance package sourced by EIC

M

ilton Abbey School is installing a range of measures, including a biomass boiler, water harvesting technology and air source heat pumps to save 3.3 million kWh of energy, reducing the school’s carbon footprint by 1,000 tonnes.

The measures, to be implemented by EIC – part of Utilitywise, follow an indepth audit of the school’s energy use, and will provide an annual saving of £330,000 on the school’s energy bill.

Underpinning the project is a finance package sourced

by EIC as part of the overall energy solution strategy.

Julian Litchfield, bursar at Milton Abbey School, says: “The EIC team were refreshing in their approach and explored a number of options to reduce our energy costs and utility consumption. Things have progressed smoothly and together we’ve developed a co-branded logo with the tag line ‘Mission for Energy Efficiency’ that was launched at the Friends of Milton Abbey School Summer Fete on 7 June. We are enjoying working alongside EIC and the benefits have been varied, from cost savings and efficiency gains to practical links to our students’ education.”

The Energy Solutions team at EIC was brought in by Milton Abbey School to advise on ways to reduce the school’s energy consumption. Through ongoing discussions with the bursar the remit of the project has grown to involve a wide range of activities – from a simple and effective

“

With energy prices expected to rise, being energy efficient is vital for schools and education providers to keep costs to a minimum

48 June/July 2014 | water energy & environment

pool cover to support with energy and oil tendering.

The impact on students has not gone unmissed either and the project will provide numerous opportunities for pupil involvement – from classroom-based activities to learning more about a career in the energy sector.

Richard Tandy, energy solutions manager at EIC, says: “Our team is excited to be working in partnership with the headmaster, bursar, staff and pupils at Milton Abbey.

The school has committed to making the scheme a success and together with our energy solutions team has actively engaged with internal stakeholders to instil buy-in, implement behavioural change and maximise efficiency gains. With energy prices expected to rise, being energy efficient is vital for schools and education providers to keep costs to a minimum.”

Further energy saving at Milton Abbey School is planned with Philips, a global leader in lighting, installing LED solutions

across the school’s estate including classrooms, offices, corridors, student accommodation and common rooms. The new lighting will provide students with an environment conducive to study and learning while also complementing the visual appearance of the buildings.

Jeremy Palmer, business development manager, education, Philips says: “Rising energy prices and the need to reduce CO2 are high on the agenda for many schools, colleges and universities, with lights accounting for around 2025% of an education estate’s costs. We are working closely with EIC to identify areas where LED lighting can help Milton Abbey reduce its energy bills and ongoing maintenance costs, freeing up funding for other resources and school activities.”

In total, Utilitywise has more than 17,000 customers and manages an overall energy consumption of approaching 20TWh per annum. we&e utilitywise.com

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Combined Heat & Power

Lower temperatures for higher efficiency With the move to using a mix of different heat sources to achieve low carbon heating, system operating temperatures have become increasingly important. Lars Fabricius explains why

i

n recent years there has been a move to combine a number of different heat sources within a heating system. These include mini combined heat and power (CHP) units that have enabled many smaller applications to make use of this energy and carbon-saving technology, as well as heat pumps, solar thermal and the more traditional condensing boilers.

Crucially, these technologies operate more efficiently at lower return water temperatures than are traditionally used in UK heating systems – namely 80° flow/60° return.

Consequently, there is a need for a rethink in the way such systems are designed.

Indeed, this has recently been recognised by the Chartered Institution of Building Services Engineers (CIBSE), which advises in recent guidance:

“It is recommended that, for new systems, radiator circuit temperatures of 70°C (flow) and 40°C (return) are used, with a maximum return temperature of 25°C from instantaneous domestic hot water heat exchangers.”

As a result, the difference between the flow and return water temperatures (the “Delta T”) is, or should be, now becoming the overriding design consideration if the energy and cost-saving potential of the system is to be realised. In fact, where the anticipated energy savings from low-carbon heat sources fail to materialise, it is nearly always because the Delta T is wrong, in relation to the requirements of the heat sources in use.

Furthermore, while the CIBSE guidance refers to CHP systems, the same principle

to get the considerable benefits of CHP it is necessary to consider the most effective delta t (flow and return water temperatures) and design them into the system accordingly

50 June/July 2014 | water energy & environment

applies to many of the other heat sources that are now commonly being used. For instance, the optimum Delta T for gas-fired condensing boilers is 55°C/30°C; for heat pumps it is 40°C/35°C. Additionally, lower return water temperatures are better suited to the relatively mild UK climate, where heating systems are often “over-sized” for the few very cold days we may experience each year. delta t and CHP One of the fundamental characteristics of CHP is that it generates both heat and electricity. You can’t have one without the other, so the overall energy and carbon benefits are inextricably linked to the run-time of the CHP plant.

Consequently, where CHP is included in the system the design should seek to ensure

maximum run-times for the CHP plant by achieving a good Delta T and using a thermal storage vessel to store hot water when demand is low. In this way the CHP continues to operate and generate electrical power for use in the building or export the grid.

Consequently, achieving a good Delta T and using a thermal store are both critical elements in maximising the return on investment in CHP. In ensuring that there is effective control of Delta T in the system, the first step is to reduce flow temperatures (eg to 70° rather than the traditional 80°). Then, as long as sufficient heat is removed from the system via the radiators, fan coils or other terminal units, this will reduce the return water temperature. This higher level of heat transfer to the space being heated will be greatly facilitated by reducing the flow rate, so that the water spends more time in contact with the air it is heating. The same principle applies when plate heat exchangers are used for the domestic hot water rather than hot water cylinders.

A further benefit of this is that variable speed pumps can be used to control this flow rate, as slower flow rates can be achieved with smaller, variable speed pumps, resulting in lower capital costs and reduced pump energy consumption.

To a non-engineer these measures may seem complex but they are in fact relatively simple to incorporate into the design of the system. we&e Lars Fabricius is managing director of SAV Systems sav-systems.com

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Financial incentives for CHP users A new service has been launched aimed at the one in six UK CHP customers that are substantially losing out by failing to register for the Combined Heat and Power Quality Assurance programme

e

NER-G has launched a new service to ensure UK CHP users do not miss out on thousands of pounds of financial incentives.

The new service manages compliance and certification for the Combined Heat and Power Quality Assurance programme (CHPQA), which is required as qualification for a raft of government incentives, particularly exemption from the Climate Change Levy (CCL).

The new certification service launches as latest data shows almost one in six UK CHP customers are failing to register for CHPQA and hence losing substantial financial benefits.

“On a small 200kW CHP system, failure to gain CHPQA certification would mean missing out on more than £10,000 per year in CCL relief, while a 2MW system would qualify for payments of approximately £100,000 per annum,” explains Heather Foster, corporate account manager for ENER-G Combined Power.

She adds: “CCL relief is available to CHP operators for energy consumed onsite.

CHPQA registration is also the route to other tax benefits such as qualification for Enhanced Capital Allowances; preferential treatment in the EU Emissions Trading Scheme; exemption from business rates and exemption from the Carbon Price Support Levy.”

In addition, those energy efficient users that are maximising the heat output from their CHP for onsite consumption, but require

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“

On a small 200kW CHP system, failure to gain CHPQA certification would mean missing out on more than £10,000 per year in CCL relief

additional top-up heat from boilers, also have the facility to ‘extend the envelope’ and claim additional CCL relief on the additional gas consumed in that process.

ENER-G can also advise on that separate claims process.

CHPQA provides a methodology for assessing energy efficiency and environmental performance of CHP systems and determines whether a site is classed as “good quality” CHP. As part of the new service, ENER-G takes care of all aspects of a CHP scheme’s initial registration and annual certification process – managing performance and monitoring requirements and completing the paperwork through the CHPQA and Department of Energy and Climate Change to enable customers to gain CCL relief

and other financial benefits.

In addition, by analysing usage and efficiency of the system, opportunities for optimising technical performance may be identified to ensure maximum efficiency.

Ms Foster adds: “To achieve ‘good quality’ certification, schemes must achieve or exceed a Quality Index (QI) rating of 100, and power efficiency performance of greater than 20%, which are also designed to meet the requirements of the European CHP Directive.

“Our analysis determines these ratings by examining data for fuel used, power generated and heat supplied.

Failure to achieve the threshold results in a scaling back of the fuel and/or electricity that will qualify for tax benefits.” we&e energ.co.uk/chp

June/July 2014 | water energy & environment

51

Renewable eneRgy

Maximising returns from biomass John Field of TEAM (EAA) explains how to make the most of returns from biomass Renewable Heat Incentive schemes

T

he Renewable Heat Incentive is the UK government’s world-leading subsidy scheme to encourage switching from fossil fuel heating to renewable heating sources. Like all worldleaders it is not without imperfections and controversy.

The scheme was set up for non-domestic sectors (including multi-residential) and is just starting for the domestic sector with significantly changed criteria for approval and metering, which are not addressed here.

The non-domestic RHI scheme was set up to parallel the extensive range of support schemes for renewable electricity and immediately that begs the question of why there have been few heating

subsidy schemes. The answer highlights a critical issue: electricity is easy to meter and heat is not. Alongside that, heating systems have complex flows and usually involve traditional non-renewable heating plant – often in ways (like immersion heaters in domestic hot water cylinders) that have been taken for granted or even actively disregarded by the industry until you need to know whether the heat you are using is from a renewable thermal source which an electric immersion heater is not.

One thing is for certain, that the scheme is achieving significant momentum – unlike a certain other planet-saving scheme. An obvious reason for this is the high subsidy tariffs, which

52 June/July 2014 | water energy & environment

determine how much you are paid by the government for each kWh of eligible heat output from your approved system. Another reason – more arguable – is that the Department of Energy & Climate Change and Ofgem have got on with the business of developing a scheme with pragmatic procedures to work around the bigger issues. This has a flip-side in that the application and approval processes are a little complicated; on the other hand the issues are substantial and one could challenge critics to come up with a better approach.

Of the renewable heat technologies covered by the scheme, solid biomass has been the undoubted front runner to date, receiving the majority of

the subsidy payments. Ground source heat pumps come in second and air source heat pumps are a late entry with some promise. Also included are solar thermal, biogas, deep geothermal, energy from waste and biomethane injection into the grid.

A universal theme has been that the relevant heat flows have to be metered (except for small fractions of system heat such as some buried pipework heat losses) and as metering air-transported heat directly is virtually impossible, the scheme concerns mainly water and steam-based heating generation, even if the heat is eventually emitted by air handling plant.

The scheme guarantees payments over 20 years (indexed upwards for inflation) »

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Renewable eneRgy for properly metered and reported renewable heat from an approved system.

Typical annual payments are £40,000 a year for medium biomass and £11,000 for small biomass. Multiply that by 20 years and you have some very big numbers by the standards of energy-saving support schemes.

A key concept in the above is obtaining approval from Ofgem, which Typical annual authorities, manages payments for small NHS the scheme and local on behalf of biomass authorities.

DECC. Potential The installations have application process to be put through an is described at length in application process, which is publicly available documents designed (and updated from on the Ofgem RHI website, time to time under a supposed which you can access directly simplification banner) to and Ofgem has included establish that the basic criteria some brave attempts at an for subsidy are complied introductory guide, with dos, with. It also ensures that don’ts and common errors. the eligible renewable heat Another thorny issue is output can be metered and not the long-term picture for the increased either fraudulently subsidy tariffs. While the tariffs or accidently by, for example, for approved schemes are fixed a retained gas boiler. at the time of approval for 20 Application for biomass years (apart from upwards RHI approval is therefore a indexing) there is an uneasy process requiring a wide range period between committing of information and evidence to a renewable installation – and a stated engineering base issuing an order to a supplier/ for the metering: in many installer – and approval that cases other than the simplest, follows design, installation, this application must be commissioning, gathering supported by an extensive application information, engineer’s report (again with submission to Ofgem, review evidence) setting down how

by Ofgem, resolving any the metering achieves the queries (most applications scheme criteria. This report have queries) and approval by is titled the “Independent Ofgem. Much of this period Report on Metering comes after payment is due to Arrangements” (IRMA) and the contractor which usually has to be carried out by an follows commissioning. “unbiased and impartial” There is confusion and engineer who can demonstrate some misinformation about suitable experience and when the subsidy starts. An expertise in heat metering. approved scheme receives TEAM has highly qualified payments for eligible heat in engineers with a track record arrears on a quarterly basis of delivering successful according to metered data IRMAs and RHI applications submitted quarterly to Ofgem for a wide range of public by the scheme owner or their and private sector clients agent. The first quarter starts including supermarkets, police

£11k

54 June/July 2014 | water energy & environment

at the time of the first meter reads, which are an important part of the submission of an application to Ofgem – if the application is approved without major queries the heat generated during the review and approval time is all subsidised and the tariff is fixed at the date of the first meter reads.

However, if significant changes are required to the installation or the application, the application must be resubmitted with a new first reading so the intervening heat subsidy has been lost.

“

tariff reduction by Ofgem to prevent the number of applications mushrooming out of control, as they did with solar photovoltaic Feed-in Tariffs in October 2011.

DECC has set up a quarterly review process that looks at application levels and gives notice of any reductions (degression) of tariffs in the next quarter. These changes have been small to date, typically 5%, but that adds up over a 20-year project and there may be more than one degression before an installation is approved if approval times are extended.

DECC has a separate tariff review process, which has been used so far to increase selected tariffs in order to boost take-up of technologies that are not receiving RHI applications and subsidies.

The overall picture at present is therefore that this is a significant scheme with potentially large and long-term subsidy payments but that the application process requires considerable expertise, attention and

Application for biomass RHI approval is a process requiring a wide range of information and evidence and a stated engineering base for the metering Potentially more seriously, the tariff will be fixed from the new first meter reads and the tariff levels may have been reduced in the meantime.

The time taken for Ofgem to review applications is an important part of the above processes. Our experience has shown that this can be as little as two weeks for high quality applications and longer for more complex ones. The quality of the information provided makes a significant difference in avoiding review delays , formal queries and their resolution.

Concerning longer-term tariff projections, the term degression is used for

planning. Barring major revisions to the whole scheme (or worse), the process for longer-term review of tariffs is fairly well set down and can therefore be planned for. we&e TEAM is currently providing IRMA reports to clients ranging from large retail stores to housing associations across the UK. Energy consultant Justine Grant is co-author of the B&ES Guide to Good Practice: Heat Metering for the RHI, while energy consultant Princess Opara is part of the Ofgem RHI Industry Advisory Group led by Jacqueline Balian, head of RHI operations teamenergy.com

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EvEnT prEviEw

Resource efficiency under one roof Creating renewable energy and saving on energy use plus water-saving initiatives and advice are the themes set to take centre stage at The Energy Event, The Water Event and The Renewables Event, which are returning to the NEC Birmingham from 16 to 17 September

T

he Energy Event, The Water Event and The Renewables Event are the perfect opportunity to address all of your company’s energy and water resource needs with one visit.

Water, Energy & Environment magazine, which is once again partnering with the three shows, brings you a snapshot of some of the key exhibitors, suppliers and seminars to visit.

The Energy Event From pioneering energy management research to the latest cost-cutting technologies, The Energy Event is the perfect destination for those managing and procuring energy in all areas of business and facilities management.

Visitors can gain access to more than 150 exhibitors including major energy suppliers, brokers, consultants and product manufacturers.

Working with their key partner, the Major Energy Users Council (MEUC), the event also features a free to attend two-day conference featuring world-class curated content delivered by high profile industry and government experts.

Exhibitors Organisations from across the energy sector will be on hand to offer advice, from major energy suppliers such as npower and Dong Energy to brokers, consultants and product manufacturers.

Other exhibitors include Corona Energy, Eneco UK and Airedale International Air Conditioning. Brands offering energy-saving lighting solutions include LED Eco

BiU will again bring its impressive two-tier stand to The Energy Event Lights, Thorlux, Tamlite Lighting, Trac Lighting & Controls and Contrac Lighting.

British Independent Utilities (BIU) is headline sponsor at the event this year and it will bring is impressive two-tier stand to the exhibition arena.

Conference programme: Energy information Theatre In the Energy Information Theatre, Angus Kippen, environment manager of Coca-Cola Enterprises, and Andrew Robertson, Bentley Motors’ head of site planning, will discuss ways in which they have developed environmental strategies to meet the new ISO 50001 standards.

Local government issues will also be covered extensively with representatives from Bristol City Council, North Somerset Council and Lancashire County Council. Topics to be explored include the challenges

56 June/July 2014 | water energy & environment

of complying with changing energy legislation and practical insights into how councils are leading the way in energy efficiency innovation.

Speakers from The Carbon Trust will demonstrate the latest innovations in technology, products and practice that can be implemented to improve energy efficiency.

The Energy Leaders’ Conference Some of the topics to be explored in The Energy Leaders’ Conference, sponsored

by The Energy Brokers, include the Electricity Market Reform and what financial effect it’s likely to have for business.

Dieter Helm, professor of energy policy at University of Oxford, will be delivering one of the show’s headline talks on how to survive in our chaotic energy world.

Zyda Law will conduct

a session exploring how legislation really translates for business owners. The panel discussion will investigate how current policy and legislation could affect businesses, to help owners become more aware of the changes and how best to comply. Ms Law will also be offering practical advice on legal requirements and legislation within a new show feature.

The practicalities of shale gas extraction will be addressed in the seminar looking at the sustainability of fracking. A lively debate is anticipated with expert panellists including Doug Parr, policy director of Greenpeace, and Nick Grealy, principal of No Hot Air. The renewables Event Returning for its third year, The Renewables Event is the UK’s largest showcase of technology, services

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and expert advice for all aspects of best practice for onsite energy generation.

This year’s show is expected to welcome more than 7,000 visitors who will network and do business with 50plus exhibitors and attend 15 talks, panel discussions and case studies from some of the sector’s key thinkers and decision makers.

Exhibitors With representatives from the country’s fastest growing energy solution companies to industry leaders in biogas plant production, this year’s event is the perfect chance to buy, sell and network. Exhibitors this year include Econergy (British Gas company), Viessman, and Total Gas and Power.

The latest developments in biomass fuels will also be on show from exhibitors including Brites, Combustión y Secado Ingenería, bhsl and Forever Fuels.

Visitors can also discover more about photovoltaic solar technologies from both residential and industrial suppliers including Schletter UK, Bowler Energy, Juwi Renewable Energies and Solarsense UK. Conference programme The Renewables Theatre will feature a range of panel discussions, case studies and presentations exploring some of the most pressing topics and debates in renewable energy.

Dr Doug Parr, chief scientist and policy director at Greenpeace, will discuss the key changes in renewables over the coming years in his talk that will look at the future of the renewables landscape and its business role in the wider energy space.

Professor Rob Holdway, director of Giraffe Innovation, will be chairing a discussion on the state of current funding opportunities. Looking at how to get creative with funding and different investment

theenergyst.com

opportunities, the panel will discuss alternative investment solutions and what investors are looking for. Joining Holdway will be Amy Cameron, campaign manager at Solar Schools and Miles Alexander, director at Green Investment Bank.

Other practical case studies at the conference include renewable technologies used by the London Fire Brigade and a geographical focus on the city of Bristol, which was named the UK’s leading green city and the European Commission’s European Green Capital for 2015.

The water Event Approaching its second show, The Water Event is the UK’s only dedicated event for water procurement, management and efficiency. It addresses both the issues faced by a market on the verge of deregulation and the financial benefits to organisations who manage their water more efficiently.

Exhibitors Leading suppliers such as Anglian Water Business, this year’s headline sponsor, Severn Trent Services, sponsor of the VIP speaker lounge for the second year, Business Stream and United Utilities, 2014 Networking Hub sponsors, have confirmed their return to The Water Event.

Newcomers to the show

include MWA Technology, Balmoral Tanks and Mabbett & Associates, with event partners being the MEUC (Major Energy Users Council) and SBWWI (Society for British Water and Wastewater Industries).

The conference The Water Theatre offers more than 15 free CPD-accredited sessions from government advisors, industry leaders and academics. These sessions will provide updates on upcoming legislative changes around water procurement, including updates and opportunities in advance of the expected water deregulation in 2017. It will also present case studies on how industry-leading end users have reduced their water consumption, changed behaviour and substantially reduced water bills.

Speakers include senior Ofwat director Richard Khaldi, responsible for customer and casework programmes and Tony Smith, consumer issues expert and chief executive of the Consumer Council for Water – both are new speakers for 2014.

Smith will explore the ripple effect of The Water Act in a panel discussion of experts, drawing on key learnings for England from Scotland’s deregulated water market.

Economist Dieter Helm, Bob Wilson, director of Anglian

Water Business, Wayne Earp, managing director for operating services at Severn Trent Services, and East of England Cooperative Society energy manager Glyn Lee have also been confirmed.

The speaker programme also features practical case studies from ZSL London Zoo and Whipsnade Zoo, with their waste management lead, Freddie Romaniuk, looking at how to offset the ever-increasing cost of water. Elsewhere, Ian D Strachan, chairman of one of the UK’s largest DIY re-use centres, Yooz, will discuss how to run a business 100% self-sufficient in water.

All three events (organised by i2i Events) run from 16 to 17 September at the NEC Birmingham, alongside Europe’s leading waste and resource management event, RWM in partnership with CIWM (16 to 18 September).

Together, the four events offer more than 130 keynote seminars, debates and presentations, which cover the whole range of environmental and resource efficiency issues faced by companies and organisations. To attend all events, visit any one of the websites to register (attendance is free). we&e. theenergyevent.com thewaterevent.com therenewablesevent.com rwmexhibition.com

June/July 2014 | water energy & environment

57

wAter mAnAgement

Customer service a key theme The Institute of Water (IOW) conference in June attracted record numbers, with customer service taking centre stage

A

record number of delegates flocked to the Institute of Water’s Annual Conference, which saw industry leaders and experts present their views on “delivering great service”. The two-day event, held on June 5 and 6 in At-Bristol Science Centre, Bristol, was attended by 230 people – the largest turnout for the conference in its 69-year history.

Delegates heard figures from both inside and outside the sector discuss topical issues and best practice around customer service, from the cultural challenge of incorporating good customer service practice into a business, to the impact of technology and climate change.

The introduction of retail competition to the water and wastewater sector in 2017 – which will drive an increased focus on customer service – was a major theme for many presenters.

High-profile speakers included Dame Yve Buckland, chair of the Consumer Council for Water; Colin Skellett, chief executive of Wessex Water; Jo Causon, chief executive of the Institute of Customer Service; Cathryn Ross, chief executive of Ofwat; Mary Gober, founder of Mary Gober International; and Bob Evans, senior vice-president and chief communications officer of Oracle, who flew in from San Francisco especially to attend the event.

The conference, chaired

by Heidi Mottram, president of the Institute of Water and chief executive of

Northumbrian Water Group, also featured a number of exhibitors, who promoted a wide range of products and services, ranging from data loggers to training packages.

Ms Mottram said: “The conference covered the key theme for everyone in the water industry – delivering great service.

“We had a top class range of speakers from as far away as America who came from the water industry and other business worlds to showcase the best customer service and what we can expect it to look like in the future. It was very thought-provoking and made us consider the challenges facing the sector and changes needed to address them.

“I’m sure all of our delegates made full use of the opportunity to network, learn and discuss the topics that matter throughout the two-day event.

“I’m very pleased that we had a record number of delegates this year and was particularly impressed with the number of younger people with budding careers in attendance. I am confident that our industry is, indeed, in

58 June/July 2014 | water energy & environment

“

The introduction of retail competition to the water and wastewater sector in 2017 – which will drive an increased focus on customer service – was a major theme for many presenters

capable hands for the future.”

Lynn Cooper, chief executive of the Institute of Water, added: “Promoting learning, networking and professional development is a key part of our work at the Institute of Water, and there is no better example of this activity in action than our Annual Conference.”

The conference was concluded by The Institute of Water’s President’s Dinner, on 6 June, which included the presentation of the Institute’s National Innovation Awards, which recognise innovative companies in the water sector.

Pulsar Process Measurement and the Dŵr Cymru Welsh Water’s Innovation Team were awarded first place in the ceremony, while Organica Water was the runner up and Radio Data Networks claimed third place. The President’s Dinner and the conference’s popular Saint Gobain Evening, which took place this year at Bristol Zoo, raised nearly £4,000 for the WaterAid charity.

Presentations are available in the Media Centre section of the Institute’s website. we&e. instituteofwater.org.uk

theenergyst.com

New Waterless Urinal Adaptor system from Water Solutions converting your urinal to our award winning system

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Reduce your costs Very cost effective No chemicals required Protects your pipework against those nasty blockages Very easy to clean Water Solutions (GB) Ltd Howbury Technology Centre, Parkside Works, Thames Road, Crayford, Kent DA1 4RQ Tel: 01322 55 30 30 Web: www.watersolution.com Email: info@watersolution.com

Water management

SuDS implementation delayed again Start date for the introduction of compulsory legislation for SuD in England and Wales is postponed

D

espite a winter of floods misery and high-profile media attention, Defra has again postponed the targetstart date to introduce compulsory legislation for SuD in England and Wales.

Local Authority Sustainable Drainage Systems (SuDS) approving Bodies (SABS) will not get the green light to start work approving SuDS

schemes on new developments from October 2014.

Instead, the letter to key stakeholders from Defra says, an announcement will be made in the summer which will set out in detail the plans for implementation of Schedule 3 of the Flood and Water Management Act. In addition, the government will still keep its promise to provide six months’ notice to enable SABS

to be ready to start work.

“The government remains committed to implementing SuDS at the earliest available opportunity, but not in a way that has any adverse impact on development,” the letter states.

Alex Stephenson, chair of the British Water Sustainable Water Management (SuWM) Focus Group and operations director of the UK Stormwater Division of Hydro International, comments: “Of course, nothing must stand in the way of increasing the UK’s housing stock and providing much-needed affordable homes. However, the perceived threat of any so-called ‘adverse impact’ of natural SuDS features for housebuilders must not be allowed to become the elephant in the room that paralyses SuDS implementation altogether.

“It has always been the case that well-engineered SuDS designs which combine manufactured systems with above-ground biodiversity

through natural features can – and do – provide cost-effective solutions for developers.

“Practical SuDS solutions using innovative proprietary systems can minimise land take and provide predictable water quality performance.

Predictability is the key to delivering SuDS schemes that local authorities can have the confidence to adopt with clear maintenance schedules.

“With parliament in summer session between 4 June and 22 July, and a General Election on 7 May 2015, there is only a narrow ‘window’ for implementation, given a six months’ leadtime. Based on previous experience, further delays could not be ruled out.

“SuDS legislation is a vital element of measures to combat surface-water flooding. It is imperative that the government implements this legislation before the 2015 General Election.” we&e hydro-int.com

drive down costs, reduce administrative burdens and ensure compliance.

“We want all large-scale

business water users to know that these benefits are available to them right now.” stservices.co.uk

Customers in control High volume commercial and industrial water users are increasingly taking control of their water use, rationalising their bills, managing compliance and saving money thanks to Severn Trent Services.

Under new legislation, which passes into law in 2017 all non-domestic sites in England, including public sector organisations, will be able to choose their water and wastewater services supplier.

However, large-scale business customers are able to enjoy the benefits of deregulation

right now by switching to a supplier that can add value by delivering water efficiencies and cost savings through effective water management.

Severn Trent Services managing director Wayne Earp explains: “Companies are increasingly looking to us to help them take control of their business water strategy.

“Our experts are helping customers with competitive pricing, improved service levels and a range of new and innovative water and waste water services to

60 June/July 2014 | water energy & environment

theenergyst.com

200 Clients / 100,000 meters / 8 TWh

Not a secret for much longer

We are now Recruiting for our Leadership Team Please Email your CV to recruitment@systems-link.com

Head of Sales Head of Operations Senior Developer

Products taking fluid level measurement to a new level Liquid volumes and flow rates can be continuously monitored using sensitive-yetrugged new sensors that have recently been added to the range of piping systems specialist George Fischer.

The Type 2270 Ultrasonic Blind Sensor and Type 2260 Ultrasonic Display Sensor have been designed to offer both ease of installation and use, as well as a long lowmaintenance life, and will find applications in the water, sewage treatment, chemical, manufacturing and processing industries.

They are also suitable for measuring flows in culverts and spillways where flood monitoring is a priority. The sensors can be used in such roles as for calculating the dosage of chemicals required to control the pH value of a flow, for the accurate filling of storage tanks and in specialist treatments such as electro-plating.

The various sizes and outputs of the 2270 and 2260 models operate on the “time of

flight” principle, where a sound wave is transmitted from a point above the fluid surface and the time for the return signal to be received measured. This provides a reading of the level for the surface to an accuracy of +/- 0.2% of flow, with the sophistication of the technology allowing for wave height or the presence of dust and grease contamination.

The sensors can further recognise and allow for “disturbing objects” such as mixing paddles or ladders mounted on the side of tanks. The sender unit emits a narrow beam of sound to offer good echo densities – which can therefore cope with light foaming of the liquid – while the user can also preprogramme in different tank or channel shapes to facilitate the calculation of volumes. The construction of both units features the choice of polypropylene and PVDF materials for the casings, giving good resistance to aggressive environments and ease of cleaning.

The displays on the 2270 and 2260 are large and easy to read, while they use a 4-20 mA

reduce pipe bursts with pressure logger HWM-Water has developed a new data logger specifically for monitoring the water network for damaging pressure transients and combatting “water hammer”. With a five-year battery life, fast data sampling and large memory, HWM’s Pressure Transient logger is suitable for both long-term surveys and rapid troubleshooting deployments.

The new logger features an expanded 4GB of flash memory and uses advanced data compression algorithms to store up to eight billion readings on board. It can operate in the field for weeks or even months while still sampling rapidly enough (25Hz) to effectively monitor for pressure transients.

Conventional data loggers are unable to sample at a fast enough rate or store enough data to log and catch damaging pressure spikes, which may only last a fraction of a second. Despite – and in part because of – the speed and brevity of the event, these moments of extreme pressure differential are a major factor in reducing asset lifetime and causing burst water mains.

Sources can be traced but only after they have been identified, analysed and compared against other known network events, such as pump or valve activation, or high consumer activity. By reducing the severity of, or even eliminating, pressure transients in the water network, asset life can be significantly improved and burst frequency reduced. The Pressure Transient logger is supplied with a robust aluminium case containing the data logger, pressure transducer with quick-fit connector, download lead, software and full documentation. hwm-water.com

62 June/July 2014 | water energy & environment

signal strength to communicate with central monitoring devices, HART modem or process control systems. The 2270 can offer operating ranges of 4 or 6m while the 2260 encompasses models able to work up to a distance of 15m.

Both can be used in proximity of process temperatures between -30 and + 90°C, while all units carry ATEX, CE and RoHs accreditation. georgefischer.co.uk

High level LEd solution for warehouses The highly efficient Verteco LED is ideally suited to high level applications, such as warehouses, workshops and out-of-town retail premises.

The Verteco LED is manufactured with a number of mid power chips behind high-transmission diffusers. This ensures light output ratio and optical control is maintained to a superb standard, while minimising visual discomfort at all times.

The energy-efficient luminaire is also suitable for use in manufacturing and industrial settings. It is also ideal for food storage areas, due to the lack of glass, mercury and phosphorous.

Additional energy savings can also be made through optional dimming and sensor control.

The constant lumen output feature of the luminaire eliminates lumen depreciation of the source over the first 50,000 operating hours. The use of LED also removes the need for costly lamp replacement, allowing savings on maintenance.

The Verteco LED can fulfil the demands of an array of environments, delivering high-performing energy-saving solutions. dextragroup.co.uk

theenergyst.com

Hot water recirculation pump without external cooling KSB Aktiengesellschaft of Germany has launched a new generation of hot water recirculation pumps for large industrial heating systems as well as forced circulation boilers and district heating systems. The horizontal, radially split single-stage volute casing pumps feature a back pull-out design.

Their ratings and dimensions comply with ISO 2858; with regard to handling hot water, organic or synthetic heat transfer fluids, they also meet the technical requirements of ISO 5199.

The HPK-L pump series, which comes in 49 different sizes, can be operated at temperatures of up to 400°C without any additional cooling devices, and is designed for pressure classes of up to PN 40. This temperature resistance is achieved by means of a larger heat barrier, which separates the pump set’s hot operating section from the air-cooled mechanical seal chamber.

A fan impeller fitted at the pump shaft end generates a continuous flow of air between the large cooling fins surrounding the mechanical seal chamber.

A service life of up to 25,000 operating hours is ensured by large, product-lubricated silicon carbide plain bearings fitted close to the impeller and by two angular contact ball bearings in back-to-back arrangement sealed

on both sides and mounted at the “cold” end of the shaft.

The patented venting profile, VenJet, makes sure that the gas contained in the fluid is separated near the mechanical seal and that it collects in the venting chamber.

The pump’s design provides space for the installation of double mechanical seals in tandem arrangement without necessitating any changes to the lengths of the cooling distances in the pump.

In this configuration, a quench fluid is provided between the two mechanical seals.

It prevents thermal degradation of the fluid handled at the sealing clearance in cases of leakage at the inboard mechanical seal, and

Heating contract award to McL Energy for efficiency, maintenance and callout

MCL Energy has been awarded a new heat service contract from Servelec Group at its headquarters in Sheffield. Servelec Group is an IT group that has operated globally for more than 30 years with experience of providing “real time” turnkey solutions for a wide range of clients using the latest, market-led technology.

The site comprises office space that is heated conventionally via LPHW wet systems with air conditioning for the summer months with a number of remote plant rooms with either modular or condensing boilers, pressurisation units, pump sets and controls.

The service contract includes routine maintenance, callout response, ad hoc chargeable works and system improvements including installing energy equipment to reduce energy consumption and create improved comfort levels for employees.

For more details on its site energy services portfolio and industrial technical energy solutions contact: mclenergy.co.uk

theenergyst.com

discharges the heat transfer fluid into the quench system. This enhances the system’s operating reliability, especially when using synthetic heat transfer oils of up to 400°C and with vapour pressures of more than 1 bar.

Discharge-side casing wear rings and drilled holes in the impellers help to reduce the axial thrust and thus the loads on the bearings.

With 49 pump sizes on offer, a hydraulic system

allowing the pump to be operated close to the best efficiency point (BEP) can be selected for almost every application. The pump manufacturer will also make sure to match every impeller to the required operating point before the pump is supplied to the customer. ksb.com

online calculator helps to save money Veolia Water Technologies has launched a new service, Reco Solutions, to help you improve water and energy efficiency and reduce costs. Reco Solutions is a website that can help companies optimise their water systems, save money and adopt a more sustainable approach to minimise their impact on the environment.

The new website provides an online calculator that can show just how much you can potentially save by using Veolia Water Technologies’ technologies. See how improving your boiler makeup water treatment will reduce blowdown, saving both water and energy, or how recovering waste water from your reverse osmosis system reduces your water footprint.

Enter the basic operational details of your system into the online calculator and you can see at a glance the cost savings and return on investment. Reco Solutions is a vital tool for decision making and will help you to understand the benefits of investing in sustainable strategies such as water reuse and wastewater recovery. recosolutions.co.uk

June/July 2014 | water energy & environment

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Q&A

Mervyn Bowden The managing director of Intuitive Energy Solutions on preparing for life without electricity, England’s lack of sporting success and heavy rock

W

ho would you least like to share a lift with?

Peter Sellers – I wouldn’t have been able to keep a straight face.

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

Cure everyone with serious illnesses.

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

To pre-electricity times when buildings were dark, cold and the main form of transport was horses and donkeys, with food grown locally and only within season, in preparation for when we return to that happy state in the not too distant future when fossil fuels run out.

“

Why do sports teams labelled ‘England’ never win anything?

Who or what are you enjoying listening to? (music, radio etc) Always enjoy the same stuff harking back to my misspent youth – hard and heavy rock music with loads of bass, which makes the building shake.

What unsolved mystery would you like the answers to?

Why do sports teams labelled “England” never win anything?

What would you take to a desert island and why? (excluding loved ones and practical things) A stress ball – boredom is a terrible thing.

What’s your favourite film?

Naked Gun – Lesley Neilson is hilarious.

Q

: What did we use before candles?

A

: Electricity

66 June/July 2014 | water energy & environment

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

I’m really not as grumpy as everyone thinks.

What would your super power be and why?

See unsolved mystery above, an England team that wins.

What would you do with a million pounds?

Buy my kids places to live

– their generation has been badly let down by mine.

What’s your greatest extravagance?

My exceptionally frugal BMW convertible.

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

Being a creative musician to leave a lasting, but tuneful, impression on the world.

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

When the little man turns green you may cross the road.

What irritates you the most?

Politicians and population density, not necessarily in that order.

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

Improve their persuasion skills to get lots more cash to invest in energy efficiency projects.

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

Chairing a major conference only this week for a large energy supplier to help spread “the Word” on energy efficiency. we&e

theenergyst.com

Brought to you by

ENERGY MARKET ANALYSIS

Market report water energy & environment’s regular section brings you an eight-week overview of the latest analysis of the power and gas markets from Energy Trader Daily. By Serge Mazodila Gas Win'14

F

p/therms

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Gas winter 2014 57 July 2010

July 2011

July 2013

Power Win'14

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62

57

52

Power winter 2014

47 April 2010

April 2011

a more subdued reaction to the recent Russia/Ukraine tensions, as the market sell-off of 2014 continues, albeit to a lesser extent than in Q1. The low gas price has led to some

Tensions between Ukraine and Russia are continuing to cause volatility in the gas market as traders ‘wait and see’

theenergyst.com

July 2012

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£/MWh

ollowing the Q1 market slump caused by the “winter that wasn’t”, the gas market has continued to see losses as a result of healthy storage levels (80% full), aboveaverage temperature forecasts and low demand levels.

This fundamentally Bearish picture has been tempered by high levels of market volatility, caused by the bubbling tensions between Ukraine and Russia, with traders’ focus drawn to the Russian reaction to Ukraine’s unpaid gas bills.

Several rounds of talks between the opposing countries failed to reach a satisfactory conclusion, leading Russia to cut off gas supplies to Ukraine for the third time in the past decade.

Currently, gas is still transiting through the Eastern state to Europe, but the uncertainty surrounding these flows is leading to increased volatility in the gas market, particularly among prompt contracts. This state of affairs looks set to continue in the near-term, as the two countries tussle over payment, pricing and pride.

The power market has seen

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April 2012

gas-switching in the UK as power generators begin to favour gas-fired power plants rather than coal, although this could also be seen as a necessary way to rid the UK grid of excess gas amid low consumer demand levels.

The geopolitical volatility seen in the gas market has led to some upward pressure and price spikes in the power market, but the movements appear to be supporting the price rather than increasing it, and recent weeks have seen a more sideways trend for the power curve, as traders adopt a “wait and see” attitude during this turbulent period.

Serge Mazodila is lead trader of LG Energy Group

April 2013

April 2014

Energy Trader Daily A leading UK energy trading desk which examines market areas and utilises established methodologies, in order to deliver market intelligence, focusing on both fundamental and technical analysis. ETD has a wealth of knowledge, real time streaming direct to your desk, and an expert trading analyst team to help you manage future market uncertainties. www.energytraderdaily.com

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67

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