The EMA Magazine I March-April 2017 Issue by The Energy Management Community

THE EMA MAGAZINE

www.theema.org.uk | ISSUE MARCH–APRIL 2017

WATER RETAILERS WILL FIGHT TO SELL YOU LESS WATER AND WILL BE REALLY INTERESTED IN YOUR METER Find out why

WHERE SHOULD BATTERY TECHNOLOGY BE LEADING US? With Dr. John Rhys

ENERGY MANAGER’S GUIDE

to engaging with staff

40:20:40

The energy management ratio

LIGHTING CONTROLS

Case study and future trends

Energy Awareness

Your People are your ‘Silver Bullet’

WATER TIME TO SWITCH Charley Maher, managing director of water2business, explains how businesses across England will soon be able to choose their water and sewerage retailer.

witching energy suppliers and shopping around for the best deal is a given these days for businesses seeking to drive down costs and become more eﬃcient in the way they operate.

And now there’s about to be choice when it comes to water, with businesses of any size being able to choose their water and sewerage retailer. It’s all part of Open Water, which has been introduced by the government and Ofwat. So what does this mean? Well from 1 April 2017 any large or small business, council, hospital, school or even charity can choose their water and sewerage retailer. While the water supplied will still be provided by your local water company and still travel to your premises along the same pipes, most of your interaction will be with your retailer. While a number of water retailers will be oﬀering this service, it’s really important you opt for one that truly understands your business.

April 2017

All will be aiming to attract new customers and while price will play a part it is unlikely to be the deciding factor for many businesses switching. That’s because the margins set by the industry regulator Ofwat are slim - an average of 2.5% net margin or 6% gross for retailers. Therefore it’s likely to be the quality of the customer service, investment in innovation, and the value added services offered to your business which will set the retailers apart from each other. At water2business we offer leading customer service and tailored water and wastewater management that will help to improve efficiency and deliver savings. Unlike others, we’re not a newcomer to the market, instead we’re a company with extensive industry knowledge that has a proven track record and already provides business services. So whether you’re looking for help on reducing water consumption – which in

turn could reduce energy costs too – or ﬂexible, consolidated billing for multiple sites, we can help. You can ﬁnd out more about our other added value services by calling us today on 0345 850 0714 or visiting www.water2business.co.uk

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contents

EMA MAGAZINE

FOREWORD

By Suki Gilliland

FEATURES

Find out why Water retailers will fight to sell you less water and will be really interested in your meter.

By Lord Rupert Redesdale and Robert Williams

Making a Splash: Water Management Rises in Importance By Lee Ashworth

TRAINING

TECHNOLOGY

Corby the future of the 30 Isdecentralised demand side community grid?

Steps to your professional development in energy management. By The Energy Managers Association

40:20:40 - The Energy Efficiency ratio By The Energy Managers Association

USER’S GUIDE

18 Industrial Strategy needs an 21 active energy management culture – Part 1 Energy Manager’s Guide to Engaging with Staff

By James Napier

Brookes University: an 32 Oxford education in energy savings THE FUTURE OF LIGHTING 34 How you can get the Board 37 to listen. By Harvard Technology

By Edward Lees

By The Energy Managers Association

By Kit Oung

25 Energy Efficiency 28 Minimum Standards

Where should battery technology be leading us? By Dr John Rhys

By Gabriel Hurtado González

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

By The Energy Managers Association

FOREWORD by

SUKI GILLILAND

Head of Energy at QinetiQ

Welcome...

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

... to the latest edition of the magazine for energy managers, the EMA Magazine! Lord Redesdale asked me to take the reins this month and write this foreword. I am the Head of Energy at QinetiQ and moved into the Energy Management profession at the end of the 90s after working in Facilities Management for 10 years. My job is varied and interesting and I haven’t looked back; as all Energy people say, no two days are ever the same!

Our profession certainly continues to be an exciting and innovative one to be a part of. We’re often the ones challenging convention, asking the awkward questions and nudging our organisations into often uncharted territory. How many times have you heard the statements “but we’ve always done it this way” or “oh, we tried that before and it didn’t work”? It’s our role to work to change these perceptions, and sometimes it can feel like we are swimming against the tide. This can be a weighty responsibility, but we all know how satisfying it feels when we finally achieve our objectives to improve the energy efficiency,

energy procurement or energy security of our organisations! I’m passionate about engaging with and training our people to raise the awareness and skill sets of everyone in our organisation. I am striving to “grow my own” energy managers of all types from within our organisation and really believe that everyone has a role to play and should be afforded the skills and training to allow them to be part of our energy saving journey. I’ve utilised a range of training tools to do this and you will see that the magazine this month has some excellent articles on training, staff engagement and technology which I hope you and your colleagues will find useful. At times, the sheer magnitude and breadth of our responsibility as energy professionals can be daunting. Remember, as one of my Directors recently said to me, “Suki, it’s all about marginal gains, we can do this, one step at a time”.

THE EMA MAGAZINE EDITORIAL

The Energy Managers Association theema.org.uk - Tel: 020 3176 2834 Edita Krupova; Editorial Enquiries & EMA Office Manager edita.krupova@theema.org.uk Jana Skodlova; Training, Skills & Business Development Manager jana.skodlova@theema.org.uk CONTRIBUTORS Rupert Redesdale, Suki Gilliland, Gabriel Hurtado González, Kit Oung, James Napier, Dr John Rhys, Edward Lees, Robert Williams and Lee Ashworth. ADVERTISING SALES Tel: 0116 3265533 Nigel Stephens, nigel@membertrade.co.uk Jas Singh, jas@membertrade.co.uk EMEX EXHIBITION SALES emexlondon.com - Tel: 020 8505 7073 Michael Jacobs michael@emexlondon.com SUB-EDITORS Jo Franks, Anne-Christine Field PUBLISHER Chris Asselin, chris@emexlondon.com Jason Franks, MANAGING DIRECTOR jason@heelec.co.uk Lord Rupert Redesdale CHIEF EXECUTIVE, EMA The EMA Magazine is published bi-monthly on behalf of the EMA by HEELEC Limited, the organisers of the annual energy management exhibition, EMEX. Credit to pcruciatti / Shutterstock.com for the front cover © 2017 HEELEC Li mited, registered in England & Wales Company no. 8785975 VAT number: GB 176 1796 71 Registered offie: Treviot House, 186-192 High Road, Ilford, IG1 1LR No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise) without prior written permission. Any information or material sent by advertisers and contributors, including advice, opinions, drawings and photographs, is the view and the responsibility of those advertisers and contributors, and does not necessarily represent the view of the publisher.

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FEATURES by

LORD RUPERT REDESDALE

Chief Executive at The Energy Managers Association

Find Out Why

Water retailers will fight to sell you less water and will be really interested in your meter.

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

The deregulation of the water marketplace is now less than a month away and there could be a real potential for significant savings. Most of you might have given up on this article already but it is worth persevering, as it will have a real effect on what sort of deal you get after deregulation and could save you thousands of pounds.

Deregulation is really the privatisation of billing; the retailer gets paid to supply the consumer with water and a bill. The retailer then pays the local wholesaler. The margin is low and many will just stay with the default retail company they are assigned to. However they may be missing the real savings as many retailers will actively try to reduce your bill through water efficiency. The logic of a water retailer trying hard year on year to sell you less is not immediately obvious, however here is how it works. The water retailers will need to work to keep their customers, which is not a problem when the regulated companies were monopolies. However, there are at least 23 companies entering the market and OFWAT expects many more. Competition will slowly become red in tooth and claw as the only way these companies will be able to attract customers is by providing value for money. Here is how the figures work. The retailer can charge up to 6% of the water charge for their services. Say your bill is £100 (I know you wish) and the retailer can add £6. If another water company offers to help you reduce consumption by 10%, you will save £10. An obvious choice especially if you refuse to share the savings. In a competitive market, water efficiency and bill reductions will be the battle ground that retailers will fight over to win customers. So, what questions should you ask your prospective retailer? The main one which is central to tenants

“

Less than a month to go until the water market opening!

or energy and water management professionals is ‘Are the readings the bill is based on correct and how do I access the data?’ Always remember that under data protection rules you own the data. Water bills have been largely ignored as the water company up till now has taken the reading (or not), and passed on a bill or an estimated bill. Companies have usually just paid the bill, and mostly the bill matches use. Is that really how the new market should continue to operate? The introduction of competition was designed to create better service which will not be based on arty websites but on how good the data is that the customer can then use. The data is important because the customer may be paying far too much, mostly because of leaks that have been undetected and have steadily got worse. There are legions of horror stories of companies paying thousands of pounds for water that has seeped into the ground. Accessing water meters is often problematical as they are on occasion at the bottom of a flooded muddy hole but without regular reads there could be huge discrepancies between what is going through the meter and how much you use. Retailers will need to start supplying services that help detect leaks and survey sites and initiate behaviour change if they want to keep their customers. The use of loggers and AMR could lead to energy and water managers being able to follow their water use in real or close to real time.

This could save your company a lot of money if a leak occurs in a place that is not obvious. And let’s face it, many are not. An amusing twist is that under “My Data” rules the retailer will need to get your permission to use your water bill data and if they don’t supply the data to you on a regular or (following the electricity meter market) a half hour basis, are they in breach of the law? Just a thought… Water Market Deregulation – a Procurement view We have asked Robert Williams, General Manager, Procurement at BT Plc to explain how BT has approached the water market deregulation. After the deregulation of the water retail market in Scotland, it took some time for competition to develop to really challenge the incumbent retailer. As many English water supply companies and independents have entered the Scottish market, they have had time to fully develop their customer propositions and much is promised from the imminent deregulation of the business retail market in England. BT has over 5,000 sites with water supplies, spread across all of the existing water supply regions of England and Scotland. However, less than 40 sites are above the existing 5 mega litre threshold. Deregulation in England is therefore a potential game-changer for improving the management of BT’s water consumption of around 1 million cubic metres per year. Water is a necessary part of our business, mostly for catering, cleaning and washrooms for BT’s 81,400 employees in the UK. We have

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reduced our water consumption by an average of 7.4% annually for the last 5 years (our Purposeful Business report at btplc.com gives details). Despite water efficiency programmes, water consumption is currently increasing as we roll out new adiabatic cooling in lower heat density telecoms exchanges. These units use water to provide cooling, increasing our water use with the benefit of significantly decreasing our electricity consumption. BT’s main water challenge is the active monitoring of water consumption and quickly solving any water leaks, particularly on un-manned sites. Installation of water loggers covering around 30% of our volume is now providing good quality half-hourly visualisation of consumption. This data is also vital for accurate billing of consumption, which will be a huge challenge for new retailers who do not have access to water AMR data. The barriers we faced in getting some water companies to agree to connect AMR loggers to their water meters should be removed by deregulation.

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

What should be the key requirements from a new retail supplier?

Improvement in efficiency and accuracy is critical. The market deregulation and change of supplier (which will happen automatically in April) is a great opportunity to drive the new retailers to deliver a complete audited, and agreed, record of your SPIDs (Supply Point IDentification number) and all of the basic account data which is used to charge for water at each building. Inefficient paper billing can perhaps now come to an end, with no more missed monthly bills causing headaches for cashflow forecasting. Electronic billing should be a basic requirement to drive improved efficiency. Tradacoms is a format already used very effectively in gas and electricity billing. Simplification of charging tariffs across England looks unlikely to happen at a wholesale level and therefore billing validation by the customer will still be essential to ensure new retailers are delivering accurate bills. To do this validation, consumers need to ensure that the requirement for fully disaggregated billing at every SPID is included in new contracts.

Accurate water bills can only be secured from actual meter readings. Retailers who offer AMR loggers as part of a supply contract will be able to provide accurate bills, water leak detection and an improved customer service. Installing AMR will also provide cost benefit and risk reduction to the retailer by allowing them to manage their cashflow, so is a win-win in a new contract. Are there any risks from deregulation? Any new retailer must hold a water licence. The current list (at time of writing) seems to grow every week as OFWAT processes the applications. Will a good opportunity to work with new efficient suppliers be missed by running a procurement process too soon? The incumbent water suppliers have promoted the apparently low margins and small cost savings that will be available in the English market. This has not been the experience of Scottish market deregulation. Cost reduction, service improvement and simplification has been experienced by many who have engaged with the full retail supply market in Scotland. The variety of charging structures and unit rates across all the existing English supply regions is huge. How will the new retailers deliver one simple bill? With fully disaggregated billing based on the specific charges

at each SPID? And deliver fully transparent pass-through of all the wholesale unit costs? TPIs (Third Party Intermediaries) are promoting their services to support businesses in this emerging market. In the electricity market, OFGEM challenged the transparency of TPI charges and bonus arrangements. Consumers should ask TPIs to declare any arrangements, and TPIs should be transparent with customers. How should buyers consider these new retail suppliers? On paper, the new companies have little or no trading history. Typical procurement business analysis tools will show them to be moderate to high risk. How will these new entrants prove their financial standing and their ability to manage your water estate? At BT, we look forward to the opportunity to simplify, by working with one retailer who can evidence their ability to bill transparently and accurately at every site, pass through the wholesaler costs and manage our account efficiently and effectively. tax burden. Fortunately, the only way this is possible will be by reducing consumption and making sure they have an energy manager to do the job. It is not often that the Treasury and taxes are sources of happiness, but this one is and should bring out a happy smile amongst many energy managers.

UNDERSTAND THE WATER MARKET OPENING TO RETAIL COMPETITION Gain a better understanding of the UK water industry structures, overcome challenges of the industry changes and benefit from opportunities arising from the opening of the English water market to retail competition. EMA Seminar: Understanding the Opening of the Water Market in England* Seminar Objectives: - UK water industry structures - What makes up a water bill - The opening of the English water market to retail competition - Water metering and monitoring systems Date: 21 March 2017, Morning session (9:30-12:30) or Afternoon session (13:30-16:30) Location: London – Vauxhall Fee: £200+VAT Apply at www.theema.org.uk or call 0203 176 2834 to reserve your place. *All participants will receive a CPD certificate

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FEATURES by

LEE ASHWORTH

Environmental Manager at Npower

Making a Splash: Water Management Rises in Importance Npower Environmental Manager, Lee Ashworth, explains how his team are wringing out savings.

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

“Most Energy Managers clearly understand that saving water is not just an admirable thing to do in its own right, but a vital component of securing energy savings across a portfolio. However, making it happen requires a multifaceted approach. Using a combination of technological innovation and behavioural change, npower and its colleagues in the Business Solutions arm of the organisation has achieved an absolute water reduction of 31.3% over the past 36 months across its retail business.”

Setting a clear water policy It starts with having a clear water policy. Ours complements our ISO14001 system and environmental and energy policy. It outlines a company-wide commitment to monitor performance, make resources available to invest in technologies and campaigns to raise water efficiency awareness and communicate targets. ISO14001 of course sets out the criteria for an environmental management system – helping organisations improve their environmental performance through more efficient use of resources and reduction of waste. The 2015 version of the ISO14001 standard saw some significant changes, with more focus on understanding the context of the organisation and the interested parties for environmental performance. Carrying out a PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis or an audit of your environmental influences is a good place to start examining

the risks and opportunities of given measures. This supports a focus on usage and new technologies that will support delivery of water savings across your portfolio, as well as understanding in more detail the external factors such as water scarcity, adverse weather and flooding which could influence some of the decisions we make as a business in the future. Using smart meters and analytics Automatic meter reading (AMR) lets us automatically collect consumption, diagnostic and status data from water meters across our portfolio and transfer that data to a central database for analysis. We use our own data visualisation software to track half-hour reads from the water meters across the largest sites in our portfolio. We then collate the data and analyse it to identify high use hotspots and times – and ensure that it fits the water bills received. If consumption is significantly different to our forecasts we can analyse this half-hourly data to see why, making any changes / adjustments required on a site by site basis, or looking into issues in more detail. This water data is then regularly reviewed; i.e. water invoices collated by an administrator in Swindon are reviewed and sent to the Energy Manager for approval. The energy manager analyses the invoice and records the consumption data and cost in the SRT. The cost and consumption is reviewed against the previous period to ensure it is consistent with expected consumption. Water targets and technologies

Our current water targets aim to understand our consumption better through more detailed data collation as sketched out above. We target our top three sites in terms of water consumption as well as assessing efficiency measures across npower’s ever-changing portfolio of properties. A continued focus on awareness and communications will be used initially to drive the reduction through better understanding of the environmental and financial impact of water use across our estate. In terms of technologies, they don’t all have to be impressively high-tech or complex. One of the largest reductions we have seen was simply due to the introduction of BioDomes across the estate’s washrooms. Prior to the addition of BioDomes each set of urinals in the male washrooms flushed on average four times per hour, after the introduction of BioDomes this dropped to four times per day. The results have been huge – consumption dropping by more than 8000 cubic metres on the sites that remained open after 2013. We now also choose all heating and ventilation systems, air conditioning hardware, taps, WCs and water saving technologies directly from the Energy Technology list (ETL) or Water Technology List (WTL) which naturally look to minimise energy use and water use. These are our go-to lists when conducting any mechanical and electrical (M&E) work during site refurbishments; improvements and bathroom improvements along with water saving technologies are now considered for every project. (Current large scale projects in Leeds and Swindon are at detailed design stage and include targeted water-saving technologies).

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FEATURES

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

Challenging contractors and RICS SKA As we are targeting Gold certification under the *SKA rating, one of the steps we have taken – and which I would advise readers to similarly take – is to challenge contractors and get them to monitor and subsequently reduce their water usage for the duration of the project.

In addition to the use of SKA we also do this by making sure that our appointed facilities management teams enforce npower’s strict policy on car washing on site. This is totally prohibited to stop run-off entering surface water drainage, and to stop water consumption in this area. We also use window cleaning companies which minimise their water use on most sites. Our appointed catering service provider meanwhile also ensures that kitchen water usage is kept to a minimum through staff training and awareness. Rainy days Looking ahead we are keen to introduce rain water harvesting, which is now in our opportunities register, alongside grey water recycling. While the economics of the latter don’t seem to make

much sense yet, fitting rain water harvesting looks potentially viable for new sites. With the unbundling of the water industry, those with large estates would also be wise to look at seeing whether one company could supply the whole portfolio, driving both management time and cost efficiencies. Our experience of – and success in – harmonising energy providers across our different sites and securing flex purchasing packages is one that we expect to see mirrored in the water industry, driving efficiencies in management time (querying bills, collating data, etc...) as well as cost efficiencies. Making a splash While every Energy Manager will need to develop their own approach to water savings, the above should provide some useful pointers. Our environmental success has been recognised with a number of awards and we are the only energy company to have achieved the coveted triple certification from the Carbon Trust, of which we are very proud. This involved several additional innovations at sites across the UK,

including solar water heaters, wind turbines and new LED lighting. It also reflected a more efficient use of space and new agile ways of working across npower’s offices. In our recent application to renew this certification, we again found that the Trust’s certification provides a very useful framework for measuring, managing and reducing consumption. To wrap up, the savings that can be generated from water efficiencies are not just good for the bottom line, but for team morale. Last year’s Global Risks Report from the World Economic Forum ranked potential water crises as the third most impactful global risk in future. Demonstrating an ability to blaze a trail forward in its efficient use puts our company at the cutting edge of mitigating environmental risk; good for the planet, good for your profit and good for your people. *The SKA rating is an environmental assessment tool for sustainable fit-outs that consists of more than a hundred ‘good practice’ measures covering energy and carbon emissions, waste, water, materials, pollution, wellbeing and transport.

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TRAINING by

THE ENERGY MANAGERS ASSOCIATION

Steps to Your Professional Development in Energy Management. To help you get to grips with some of the gruelling tasks of energy management, the Energy Managers Association offers a range of energy management training courses delivered by experienced energy management professionals. Whether you are taking your first steps into energy management, or if you are planning to build on your existing knowledge and skills, explore the upcoming EMA courses and their focused and practical content.

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

Fundamentals of Energy Management – 9-10 March (London)

Fundamentals of Energy Management course will provide participants with an overview of the key knowledge and skills required to become a balanced and hands-on energy management practitioner. It focuses on several common energy aspects found in industry and commerce and draws on: • Global view of energy consumption and its impact; • Basic principles and analytical techniques of energy consumption and energy efficiency; • Practical calculations methods; • Technical aspects to energy management; • Managerial aspects to energy management; and • Examples of energy management drawn from global organisations of different sizes. Learning Outcomes Upon completion of the course, participants will have gained an

introductory knowledge in: • Definition of energy management; • Technical and non-technical job roles in energy management; • Basic energy calculations and data analysis; • Converting between energy consumption and CO2 emissions; • Energy measurement and monitoring techniques; and • Relationship between all modules in EMA Energy Management in Practice training programme (LEC 3). Energy Assessments, Measurements and Verification – 13 March (London) Energy Assessments, Measurements and Verification course will provide participants with an introduction to: • Range of measurement technologies available for flow, temperature, pressure, volume, weight, light, time, and other commonly measured parameters related to energy performance. • Framework to set up an energy baseline and how it can be used to vary energy performance. • Methods to verify measurements and energy performance improvements. • How to carry out an energy audit according to ISO 50002:2014 energy audit standard. Learning Outcomes Upon completion of the course, participants will have gained knowledge and understanding of: • How to identify and select the appropriate measuring device for intended application. • Identifying installation requirements of measuring devices.

• Specifying calibration requirements for each measuring device. • Developing simple energy baselines. • Utilising energy baselines as a means to monitor and verify energy savings. • How to carry out an energy audit according to ISO 50002:2014. Lighting – Basic Understanding – 14 March (London) EMA Lighting course will give participants a basic understanding of the lighting systems commonly found in the UK, their general uses and guide them in how to be generally more energy efficient. The course is also aimed at helping people engage at a higher level with lighting suppliers, and understand information that suppliers may be presenting to them. This can quite often be complicated and misleading and the course will help participants to understand what may be put in front of them and clarify what to focus on. Learning Outcomes Upon completion of the course, participants will have gained knowledge in: • Basic measurements for lighting output and efficacy and to be able to engage with lighting companies • Identification and basic understanding of the common types of lighting currently found in the UK, their general uses and basic pros and cons • Outline for participants to understand the basic process for new lighting installations and upgrades with pictorial examples • Basics of lighting design using free software to help participant be able

Energy Procurement – 9 May (London) Energy Procurement course will inform participants about the basic procurement processes for electricity and gas in the UK. It will describe how the electricity and gas industries are structured and how this impacts on the prices customers pay. It will explain the main drivers on energy pricing in the UK and how electricity and gas tariffs are structured. It will also explain the types of energy contracts that are available and the simple procurement processes that can be used by energy buyers. The course also includes information about how third party intermediaries work, how to get the best out of them, reveals how they get paid and how to minimise their costs. Learning Outcomes Upon completion of the course, participants will have gained a basic understanding of: • UK electricity and gas industry structures • What makes up delivered energy tariffs • What are the basic drivers of energy prices in the UK • The basic contract types available in the UK • How to run a basic procurement exercise • What third party intermediaries do and how they get paid Turning Data into Energy Savings* - 11 May (London) Turning Data into Energy Savings course will give participants an opportunity to learn how to maximise the savings that can be achieved from the effective use of energy data. Using real examples this course will help participants to establish their data requirements and the different ways to deliver real measurable savings. The course will cover: • Sources of data

• What is data commonly used for, what else could it be used for • How to use your data within your business • What do you really need: - Displays? - Dashboards? - Reports? - Alerts? • Scoping data requirements • The types & uses of metering devices • Types of data analysis and performance indicators • Identifying the opportunity • Delivering the opportunity • Real life examples. Learning Outcomes Upon completion of the course, participants will be able to: • Make the best use of their existing data, turning it into deliverable savings. • Assess what additional data will genuinely help in achieving better results and how they would go about delivering this. *Min. 2 year energy management experience required The EMA training courses are produced and delivered by experienced energy management practitioners using real world case studies. The courses can be delivered in-house at a time and place that suits you. Learners are eligible for a Continuing Professional Development (CPD) certificate.

5 Reasons to attend the EMA courses 1. “Well structured, well-paced, right depth.” Energy Manager, Tesco Stores Ltd 2. “Very informative and to the point.” Category Manager - Strategic Sourcing, Skanska 3. “Interesting and thought provoking.” Energy Strategy Projects Officer, London Borough of Havering 4. “Very good presentation (excellent stamina!).” Energy & Carbon Advisor, Hanson UK 5. “Perfect for teams and job roles that need to start engaging on energy change programmes.” Energy communications and compliance Manager, Marks and Spence

2017 DATES FOR THE EMA COURSES TO BECOME AN ENERGY MANAGER OR UP-SKILL AS AN ENERGY MANAGER: 9-10 March Fundamentals of Energy Management 13 March Energy Assessments, Measurements & Verification 14 March Lighting – Basic Understanding 03 May Understanding and Delivering Behavioural Change Programme 09 May Energy Procurement 10 May Water Management 11 May Turning Data into Energy Savings 06 June Energy Management Strategy and Plan For more information, please contact the EMA on 0203 176 2834 or email Jana at jana.skodlova@theema.org.uk

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to understand what information lighting companies may present them with • Basic lighting control systems that can increase energy efficiency while maintaining required light levels and safe environments

TRAINING by

THE ENERGY MANAGERS ASSOCIATION

40:20:40 The Energy Efficiency Ratio It is obvious, at least to energy managers, that increased energy efficiency means producing goods and services at a lower cost, making companies more financially competitive. So why is it difficult to make Boards take energy efficiency seriously? One reason that schemes with even short payback are not given the green light is psychology. An energy manager promoting an energy saving measure is asking the Board to spend money on energy savings, so that a proportion of energy use will not exist in the future and the more you spend the less it will exist. The short-term nature of investment decisions in the UK makes this illogical to Boards but not to energy managers. Most Boards will just look at the figures spent on energy and demand a reduction in amount spent, even if the organisation is growing.

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“

One problem with this approach is that energy efficiency is often only seen as a process of replacing energy inefficient products with efficient products. However, adopting this process alone ignores greater savings that could be put in place. It does not matter how efficient a product is if it is left on when it is not needed, because energy is still being wasted. Controlling the use of the product and the behaviour of those who use it can yield far greater savings. How should we assess a value chain of energy efficiency measures? A simple ratio has been adopted by the Energy Managers Association (EMA) as a guide to understanding how energy efficiency measures could be measured. The three main elements of energy efficiency are energy efficient products, control systems and behaviour change. Allocating importance to these three areas is

to a degree guess work, however the general consensus amongst experienced energy managers is that the 40% equipment, 20% controls and 40% behaviour change split is a fair estimate. The EMA’s reason for promoting this ratio is that many decisions to achieve energy efficiency are often based on only one part of the ratio, with the two remaining elements being ignored.

inefficiency, may cause more power to be used in the worst cases than they save. Behaviour change is the last part of the ratio. It is often seen as in the too difficult to do box, even though it could be the cheapest and most effective form of energy efficiency. Whilst HSE is part of mandatory training for many employees, energy awareness training which could save companies significant amounts of money is being ignored. When was the last time you went on a company promoted energy efficiency course?

The EMA’s reason for promoting

this ratio is that many decisions to achieve energy efficiency are often based on only one part of the ratio, with the two remaining elements being ignored.

”

Energy efficient products deliver savings. New analysis of government statistics for BBC News showed that the average person in the UK is using 10% less electricity than five years ago. The reason is simple - equipment is becoming more efficient even though the economy has grown. This often causes a problem for energy managers arguing for funding, because the Board often have seen energy bills remain the same. Prices have gone up but that has been matched by a fall in use that hides any achievements in controlling energy spend.

The second part of the ratio is controls systems that are an excellent weapon in the energy management arsenal, but these systems need constant monitoring; how many fail to deliver if work patterns shift without the control system parameters being changed? Control systems that are not understood and checked by an energy manager, engineer or technician, who has the ability to identify any issue in the first instance and then eliminate any

Many companies at present will not be taking this proactive approach but there are a number of reasons why that will change in 2017. This year we will see a hike in prices of between 15 and 18%. Energy security is a growing problem with a generating black hole developing, and many companies, if not the Government, see carbon as a real issue to be addressed to combat climate change. The purpose of any energy awareness training is to help embed energy awareness in the way all employees use energy at work. The idea is to make energy efficiency training a part of the company culture, especially as wasteful use is costing companies money. If you wish to go down this route, the EMA has produced an energy awareness course that can be taken by employees; the course is available on the Energy Management Hub at www.energymanagementhub.org. The aim of the course is to make sure employees are aware of their energy use and what they can do about it. The course links energy use in the office to use at home, as many save energy at home but seem to think energy at work is supplied by energy fairies with no cost.

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Energy Manager’s Guide to Engaging with Staff

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

Success as an Energy Manager depends to a great extent on the ability to identify, engage and influence staff at every level of an organisation. Energy Managers must have an understanding of the needs and concerns throughout the workplace to be successful. This guide is intended to give Energy Managers an overview of considerations that should be made to ensure the best energy efficiencies derived through whole organisation participation.

Why is staff engagement so important? Whatever their role any staff member can contribute to improving an organisation’s energy efficiency. It will require 100% participation (full engagement) from staff to achieve an on-going and significant energy reduction. The best performing organisations focus on supporting staff engagement through, for example, respect of co-workers, empowerment with responsibility, manager’s levels of trust and integrity. These things help generate pride in the workplace.

Whether you are implementing an energy awareness campaign or trying to increase your company’s share value, staff engagement is directly correlated to work force performance and output. Multiple surveys show there is a direct correlation between staff commitment, doing their job well and how much they feel valued and respected. The more engaged employees are, the better they will perform. Getting the right ‘mindset’ or where to start? A good first step to a successful energy reduction strategy is to obtain feedback internally.

OBTAINING FEEDBACK

Obtaining feedback from the various types of staff will help to determine where you are now and to give you an understanding of the prevailing culture. A way to do this is to run workshops or send out a questionnaire. Use the information gained to determine the level of information and actions you will need to move the organisation forward.

Who are my stakeholders? In the broadest sense a stakeholder will be anyone with a concern or interest in your organisation. From an energy management point of view a stakeholder can be anyone who can help or even hinder your role. A stakeholder can be internal or external to your organisation although those from outside are likely to have less impact on your message unless they perform a statutory or auditable function. Stakeholders may be organisations, departments or staff, including all users of the facilities, from office staff who have some control of their environmental comfort, through shop floor workers in direct charge of energy greedy equipment, to senior board members influencing policy, strategy and any funding. An Energy Manager’s role is wide ranging as energy use will be relevant in some way in all the activities of an organisation. For this reason all of the organisation’s staff can be important allies and their management key to an Energy Manager’s success. As the work you do and the projects you run become more important, you will affect more and more people, some of whom may have the power to undermine your work, others may

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TRAINING

As both financial and environmental energy costs continue to increase, efficient use of the resource is essential for an organisation’s survival and success. Effective staff training programmes are key to successful energy reduction. This is a fundamental aspect of the work of the Energy Managers Association. As energy use is required in all the functions of an organisation so energy efficiency should be infused into all its training levels, with appropriate content for those undertaking the training.

Specific in their aims; Measured throughout; Achievable with the resources available; Realistic with stretching yet attainable goals; Timed so there is a clear beginning and end to the campaign. be strong supporters. Managing your stakeholders helps you identify the key staff members and win their support. It will be advantageous to talk to human resources (H.R.) and get an understanding of whom and how many people work for the organisation. H.R. would be able to provide advice on each of the departments and give a breakdown of job roles and the organisation structure. They would be able to advise on infusing environmental responsibilities (and thereby energy efficiency) into staff Terms and Conditions of Employment. If the reduction of environmental impact is a goal of the company then it may be appropriate that all staff members agree to be mindful of the need to be efficient. When enshrined within all staff’s induction or Terms and Conditions this can have far reaching effects. It will be overly onerous to work with each staff member at all times on a one to one basis. It would be more effective to identify the correct people within groups that are most affected by your work. Get on with it

Influencing the staff of the organisation and driving changes in their behaviour necessarily involves encouraging people to be engaged in making energy saving a common goal. Behaviour change is about embedding the things that are ‘new’ or ‘unique’ at the current time into standard practices. Examples of staff engagement: ENERGY AWARENESS CAMPAIGN Energy awareness campaigns can help to communicate educational messages. They can be effective where individuals and teams are currently unaware of just how much energy is being consumed. Increasingly, however, campaigns are having a diminishing effect as people are frequently made aware of energy costs through media coverage and indeed their own household bills. People know that filling a kettle for just one cup of tea is wasteful, the knowledge is there; the challenge is to get people to act on that knowledge. Campaigns need to be fresh and carefully directed. Perhaps draw initial themes / ideas from staff suggestions.

Roadblocks to success – don’t give up Several factors can hinder progress in the influencing of staff but often some of these factors can also become enablers. Identifying and removing / dealing with obstacles to a project implementation will very much improve the chances of success greatly. Frequently referring to and updating the “stakeholders map” (influencers – see above) will ensure that expectations are known with the correct people being kept informed, trained and supported at all times. This will minimise the risk of the Energy Manager becoming undermined and limiting progress. Some common barriers to success and progress are: • People don’t like change for change’s sake – Staff may not appreciate that their behaviour has an impact on energy and therefore an awareness of business impact is vital. Make it known how important they are by demonstrating how their contribution can affect the organisation’s performance in share price, sales, profitability, staff retention, salary levels etc. • Integrity and credibility – Energy Managers must earn the trust of colleagues by always delivering promises and being honest about issues. • Relationships with senior staff – Good relations with those who

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Successful energy campaigns should be S.M.A.R.T.

have significant influence across all or parts of the organisation will hasten the progress of an energy strategy. • Lack of data – Measurement is key to any success: “if you’re not keeping score, you’re just practising”. • Old School” mentality – Some staff will have ingrained ways of doing things. Challenge the status quo but be sure to do your homework first and understand why the old way has been in use for so long. Give examples of how a different approach will give greater benefits all round.

Your People are your ‘silver bullet’ Maybe we would prefer to buy a piece of equipment that reduced energy without human interaction, but realistically without the help of all the people in your organisation savings either will not happen or will be quickly negated. Without their engagement, the foundations of Energy Management are weak and quickly undermined, so having strong support is essential to hitting the targets you seek.

• Training – Many behaviours will be process driven and will need an element of retraining. A structured approach is essential to cascade new methods to all staff. • Communication – Identify who and how often staff need to be informed. Make all communication clear, concise and relevant to the recipient.

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• Cash – Business is in effect a machine to generate money. If it has poor cash flow funding for energy projects, then the Energy Manager’s task will be made significantly more difficult. This is true even though reduced energy and carbon costs would provide a much needed boost to the organisation’s finances. Therefore, it is important to align sustainability to business goals.

• Politics – It is often the case that departments or sections of an organisation can be territorial or have a “silo mentality”. Energy Managers need to be able to demonstrate the benefits to them of the energy efficient actions required. They need to convince the board or finance leader in

order to override objections from single interest individuals or departments. GOING FORWARD It can be a challenging task to influence all the staff of an organisation to continually seek to reduce their energy consumption. Breaking down your strategy into the various components will help to ensure that people support the drive toward your aims. Much of the influencing an Energy Manager does will come down to their powers of persuasion. Techniques and ideas are continually being developed that will help improve a manager’s ability to be persuasive.

This guide was produced by the EMA Behavioural Change Working Group and the full version, including sections on Access to Funding and the Business Case, Energy Campaigns and Measurement and Reporting, is available to download on the EMA web page (www.theema.org.uk/ema-guidesto-energy-management/) or in a digital format (EMA Course on Influencing Staff to Encourage Energy Efficiency) on the Energy Management Hub at www. energymanagementhub.org, where upon completion you will receive a CPD certificate.

If you are interested in the behavioural aspects of energy management, the EMA is running a course on Understanding and Delivering Behavioural Change Programme on 3 May 2017 in London. For more information please contact Jana Skodlova at jana.skodlova@theema.org.uk

USER’S GUIDE by

KIT OUNG

Energy Savings Strategist – Energy Savings, Efficien:ology

Industrial Strategy Needs an Active Energy Management Culture – Part 1

The background to the so-called trilemma is the deterioration of the UK’s excess electricity capacity at peak to less than 2%1 and the increase of energy cost of over 125% (for natural gas) and 150% (for electricity) over a 10-year period. The root cause of this is due to four contributing factors: (1) decades of “sweating the assets” with limited maintenance and investment in new power capacity; (2) accelerated decommissioning of old and uneconomic coal and oil generating assets; (3) the rise of decentralised and environmentally friendly sources of electricity; and (4) poor uptake of energy reduction by corporations and households. Readers of my writings will be familiar with the high-level findings of energy efficiency opportunities and the gap between available technologies and its diffusion rates. The former Department of Energy

and Climate Change even quantified the economic value of energy savings in its Energy Efficiency Strategy 2: if energy reductions of between 21 – 47% savings could be achieved by 2020 (eight years from its publication), there would be a need to build 22 fewer power stations! For those who are not familiar with the energy savings statistics, we have sufficient technology and know-how to reduce the current energy consumption by 73%3 of which at least 25%4 can be saved with little-to-no cost and operational changes. On the other hand, on average, we are achieving savings at a rate of 1% per year5. Why the disparity and reluctance when faced with such a compelling case for change? We already have technologies and know-how to save 73% of energy consumption Master Shifu [Dustin Hoffman], in Kung Fu Panda movies, tells the Dragon Warrior [Jack Black], “There are no accidents”. There is a specific reason why energy efficient technologies became the saviour of all energy consumption and climate change problems. Political and economic commentators accredit the explosion of a ‘spend-to-save mentality’ by using and retrofitting energy efficiency technologies, to a specific

time where Ronald Reagan unseated and succeeded incumbent President Jimmy Carter as the next President of the United States. One of the key messages in President Reagan’s election campaign centred on energy: Jimmy Carter’s “use energy responsibly and conserve” manifesto lost out to President Reagan’s “use as much as necessary, we’ll roll out energy efficient equipment.” The political implication, rightly or wrongly, lead to a global change away from using energy responsibly to let technology make us use less. The argument and energy efficiency narrative has taken that time since to countenance. In the domestic scale, the ‘spend-2-save’ mentality led to countless energy efficient technologies such as LED light bulbs, TVs, star rating fridges and washing machines, dryers, vacuum cleaners and cars. For those who are refurbishing the home, there are an abundance of energy-efficient options including double-glazing (and triple- or quadruple), low conductivity walls and doors, high efficiency boilers and high efficiency ventilation technologies. On the larger scale, due to the larger sizes and longer operating hours, a small improvement in energy efficiency, which is worth pennies to domestic users, becomes big and attractive for companies and government entities. These range from:

1. Kolokathis, C, Electricity Capacity Assessment Report 2014, OfGEM: London, 2014. 2. DECC, 2012, The Energy Efficiency Strategy: The Energy Efficiency Opportunity in the UK, November 2012, Department of Energy and Climate Change: London 3. Cullen, JM, Allwood, JM, and Borgstein, H, Reducing energy demand: What are the practical limits?, J Environ Sci & Technol, 2011, 45(4), pp1711-1718 4. Enkvist, P, Naucler, T and Riese J, What countries can do about cutting carbon emissions, McKinsey Quarterly, April 2008 5. Energy Technology Perspectives 2008, International Energy Agency: Paris, 2008 6. Siemens AG. Siemens sets new performance and efficiency world record at Düsseldorf power plant. Press release: PR2016010135PGEN. 28 Jan 2016.

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In January 2017, the UK Government launched a green paper on “Industrial Strategy”. This consultation looks at wide-ranging issues to attract, promote and grow the industry and manufacturing sector in the UK. One of the key and critical issues to achieve this ambition is energy supply. At the heart of this industrial strategy is the need to address the infamous term “energy trilemma” – the affordable, reliable and sustainable energy supply.

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1. Improved control systems, and ability to match energy demand vs. supply: capability to detect small variations via predictive and dynamic controls systems, use of variable speed drives to match water pumping or air ventilation requirements, etc.; 2. Better manufacturing techniques giving rise to energy efficiency gains: some examples include higher efficiency motors, high efficiency transformers and lower electricity consuming washing machines, etc.; and 3. Technologies that allow more energy to be utilised efficiently which would otherwise be wasted: some examples are using quad-generation to satisfy simultaneous power, heating, cooling, and CO2 demands; using regenerative braking on transport fleet; and turning waste into an energy source in waste-to-energy plants, gasification plants, anaerobic digestion plants, and fermentation into biofuel.

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Advances in materials pave way for newer manufacturing processes using less material, improved energy efficiency and resource efficiency. • In aviation, the use of composite materials for the airframe, improved aerodynamics, fully electronic flight controls, and other innovations allowed new aircrafts to have lower engine fuel burn compared to similar aircrafts in operation. Some airlines are also testing regenerative braking systems to recover energy of short-haul flights.

• In the power generations

sector, advanced materials and innovative turbine blade designs have nearly doubled the efficiency of combined cycle power plant efficiency from 36% in 1970s to over 61% in 20156. • The use of advanced materials and design techniques in buildings and the automotive industry have also allowed less steel to be utilised without compromising safety and structural integrity. It also means that buildings and storage tanks can be operated with less energy as there is less steel to be warmed up or cooled down. Technological research and innovations is closing the gap between current technologies and the theoretical limits of energy efficiency. Some of the more notable R&D projects are: 1. Refrigeration units that do not require the use of a compressor, thus offering significantly lower energy consumption.

to soak up excess intermittent renewably generated electricity at low-demand “off-peak” periods, to be discharged at peak periods. 5. Utilising CO2 to grow fast-growing algae as sources of biofuel, and converting CO2 into polypropylene oxide and/or graphene. In short, there is no short supply of technologies and techniques available for harvesting energy savings. Many of these innovations and technologies not only save energy and delay the onset of climate change, but also save raw materials, water, reduce waste and other resources … all of which are ingredients to a successful Industrial Strategy. The three keys … to save 73% of energy consumption

3. The use of Dearman cycles to provide simultaneous cooling and power whose by-product is air or nitrogen (both of which are inert and in abundance in the atmosphere).

While there are great strides and achievements in technology, the uptake and implementation of energy efficiency remains limited. This is evident by the results of energy savings reported – 1% reduction per annum. In a one-thousand mile journey, the available technologies and techniques to use 73% less energy represents the 999-mile journey. The successful implementation of technology represents the last-mile of the journey.

4. Low-cost “plug-and-play” batteries in the shape of a table lamp or household radiator can be deployed in large scale by plugging in to any spare electricity socket. This allows the batteries

Let me quote another great saying, “A journey of a thousand miles starts with one step”. There is an equally important yet unsaid quote, “You have to take the last step to complete the thousand-mile journey.”

2. The use of Organic Rankine cycles to extract low temperate waste heat – the most common form of waste heat to generate power.

This is where almost all efforts so far fall short. Nearly all technologyminded communities (research academies, institutes, associations, societies, consultants, service providers, etc.) ask governments to (or blame governments for not) mandate energy-efficient technology. Others jump on the behaviour change bandwagon – the need to change everyone’s behaviour and nudge others towards implementing energy-efficient technologies. Unfortunately, the solution to reducing the energy efficiency gap is not as straight forward as behavioural change. Fortunately, it also does not require one to become an energy efficiency technologist, or behavioural specialist to close the so-called “gap”. It requires courage to ask the right question, “Why do companies not do more to save energy?” To address the needs of an Industrial Strategy and balance the energy trilemma, we need to address the needs of industrial and manufacturing organisations. A company may simply either be: (1) having a cognitive bias leading to decisions for not implementing (or deprioritising) energy savings; (2) burnt out; (3) starting its operations in the UK from scratch. The needs of these three groups of organisations are different and there is not one solution that fits all of them. Key 1: Addressing organisation with cognitive bias in energy For most organisations, the energy efficiency gap is most likely due to cognitive biases7 - the way people think and make decisions about energy savings. It is where a choice architecture or nudge8 comes into

play – putting in place a series of decision processes or decision aids where people stop to think, reflect and make decisions about energy savings. The following six steps, when used in a planned and concerted way, can help to reduce and remove the cognitive biases build in all human beings. Step 1: Becoming aware that you can use less energy and wanting to act This is the first step to realising awareness that every household or company can use less energy. Every household needs to consume energy in order to create a comfortable living environment. Similarly, every company needs to consume energy to manufacture and trade its products and services. While energy consumption is a necessity to support life and economic activity, there is a need to distinguish the minimum energy consumption to support a comfortable lifestyle and economic activity, and excess energy consumption. For example, the typical fresh air supply into an office building is at the rate of 30 L/s per person. Yet, the recommended fresh air supply, depending on whether you subscribe to the UK or US recommendations, ranges between 7 - 8 L/s per person. This means that the quantity of fresh air supply to each building is in excess, giving an extra 22 - 23 L/s per person. This savings will translate into electricity savings from the ventilation fans, and reduced air conditioning (heating, cooling, and (de-)humidification). If we look at the opportunities in buildings, transport and industry, the excess energy consumption from the minimum necessary is well over 83%, 68% and 62% respectively. Even within each sub-sectors, there are still improvement opportunities to use

less in developed and developing nations. A good benchmarking exercise with the best in class building or equipment can identify the improvement gap. The difference between the best-in-class and your energy consumption is the gap for improvement. It is up to you how much energy you want to save, and how fast you want to save it. Step 2: Make energy consumption visible The next key obstacle is that many people do not know how much energy they consume or how much is their energy cost. Most employees in a company do not pay the bill. A small number of employees may read the meters or receive the information on an invoice purely for reporting purposes. Suffice to say, most people’s day-to-day work or living activities do not involve interpreting the kWh or cost information on an invoice or bill. As the saying goes, “out of sight, out of mind”. It is interesting to note that even the industrialist, Henry Ford, used only three indicators to measure his industrial productivity and they were not financial: time, material and energy.” In my book “Energy management in business”, my friend, Professor Martin Fry, said, “we take energy for granted, like the air we breathe.” A simple way to make energy consumption visible is the use of an ‘energy profile’. It is a visual representation of all the energy using equipment in your company and the quantity of energy it consumes over the course of, say, one year. This representation is commonly presented as a pie chart. When someone sees an energy profile, it leaves no doubt about what, where and how significant the energy users are. The information can help to put energy into the

7. Gillingham, K, and Palmer, K, 2014, Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence, Rev Environ Econ Policy, 8 (1): 18-38 8. Thaler, R, and Sunstein, C, 2008. Nudge: Improving decisions about health, wealth, and happiness. 9. Cullen, JM, Allwood, JM, and Borgstein, H, Reducing energy demand: What are the practical limits? J Environ Sci & Technol, 2011, 45(4), pp1711-1718 10. Levinson, W.A., Henry Ford’s Lean Performance Indicators. In Quality Digest, 7th October 2011, available at http://www.qualitydigest.com/inside/quality-insidercolumn/henry-ford-s-lean-performance-indicators.html

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The last-mile is not a technology issue but a people-based one.

foreground of people’s minds and help generate and keep the conversation going leading to remedial actions and sustainable countermeasures. Companies may also use the energy profile to prioritise the big energy users for improvements over smaller users. Another visually impactful representation of energy is the energy baseline – a graphic relationship between a companies’ energy consumption and its primary business activity, e.g. production, sales, occupancy, services, etc. Normally drawn in a spreadsheet, it shows visual information on how a company’s energy consumption varies with the business activity, i.e. it is a variable cost, not a fixed cost. As such, energy consumption is a controllable component of a company’s operating cost. Step 3: Find and implement opportunities in a way that maximises savings and minimises cost

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The next step is to smoke out where is this, so called, extravagant energy consumption. It represents the first line of attack to reduce energy consumption, and to bring energy consumption back to the minimum necessary to support living condition and economic activities.

One of my pet peeves is the overuse of the term “energy efficiency”, meaning energy savings or energy reduction. In reality, energy efficiency is only one way to reduce energy consumption. There are two other [and cheaper] ways: reducing energy users and reduction of energy consumption. Let me give you an example of saving energy from lighting in an office: • Reducing energy use: You could decide that there is too much lighting in the room and remove the excess light fittings inside the room. Therefore, the number of energy users is reduced and energy is saved. • Reducing consumption: You could find that the office is only used during daytime and the room has good access to natural day light. As such, you

elect to turn off the light switch, thus achieving an energy saving. In this case, the number of light fittings (energy users) is the same, but the time it is left ON is reduced. • Improving energy efficiency: You could replace all of the incandescent light fittings for a LED variant. In this case, the LED gives the same light output with significantly less electricity input, thus more efficient, and gives rise to energy savings. In the above simplistic example, all three methods give energy savings. Improving energy efficiency involves investing capital to achieve energy savings. Reducing energy use and reducing consumption is nearly free or low cost in comparison to improving energy efficiency. There are also situations where equipment is the most efficient, but there is no need for that equipment. Using the office lighting as an example, it may have the most efficient LED lighting. However, if it is daytime and the office has great access to natural daylight, there is no need for the LED light to be ON! Looking around any organisation, there are many opportunities to reduce energy use and energy consumption … and it does not have to be in energy units such as kWh. The opportunities can be found as excess consumption, leaks, waste, “over” processing, production speed losses, pressure drops, efficiency losses, ventilations grills chucking out hot air while others in the same area chucking out cold ones, etc. A good quality, traceable and transparent energy audit identifies these cost effective opportunities for improvements. All of these improvement opportunities need to be prioritised appropriately in order to maximise energy savings and minimise capital costs simultaneously. In general, it starts with reducing demand through good housekeeping and controls, incorporating energy-efficient operational and maintenance requirements into procedures and ensuring these operational controls are implemented well.

The next portfolio of projects should be about recovering energy waste, typically in the form of waste heat. Let me quote another saying, “one man’s waste is another man’s food”. Effecting energy recycling can be in the form of recovering the waste and transferring it to another part, or converting the waste into fuel sources. One thing to remember … if you are doing the earlier, both the heat source and heat sink must be in sync for the heat recovery to happen. Then, material and resource efficiency projects come in. Many energy saving projects may also have other benefits. Some of these might be in water savings, raw materials savings, waste savings, packaging savings, maintenance savings, etc. You may also want to consider the efficient generation of energy such as combined heat and power plants. Lastly, the advanced tools and techniques such as renewable energy sources, green chemistry and business model changes represent the emerging techniques and should be left as the last portfolio of projects. In Part 2 we will look at the following aspects: Step 4: Make energy saving messages specific and address stakeholders’ pains Step 5: Engaging and bringing people along the energy saving journey Step 6: Celebrate successes and continually improve Key 2: Addressing organisations with “burned-out” issues Key 3: Addressing organisations planning to build new plants

Author’s Profile Kit Oung is an Energy Savings Strategist at Energy Efficien:ology and Vice Chair at Energy Managers Association (EMA). He is the author of Energy Management in Business and four other energy management books. Kit helps companies develop sustainable energy strategies, and trains them on the subject frequently. He can be reached at http:// uk.linkedin/com/in/kitoung

USER’S GUIDE by

Dr JOHN RHYS

Lead Researcher, Oxford Martin Programme on Integrating Renewable Energy, University of Oxford

Where should battery technology be leading us?

This means that the development of battery technologies has to be geared to reflect the possibility of some very different applications. The UK needs to prioritise battery research to develop the key

parameters providing the most useful options for the energy systems of the future. One key issue is conversion efficiencies. In energy storage it clearly matters, but in some contexts it is much less important than other technical and economic parameters, including weight, volume, charging and discharging rates, scalability, capital cost, losses in storage, physical degradation, battery life (in number of cycles) and so on. Electric vehicles put a high premium on overall weight and volume and hence on energy density per kg or per litre. For power sector applications the typical trade-off may well be between capital cost and the frequency of the charging/ discharging cycles. A daily or more frequent cycle clearly puts more of a premium on energy costs and minimising conversion losses. Use as back-up with many fewer cycles, conversely, will tend to favour low capital cost technology options.

Capital costs dominate when the requirement is for a small number of expected charge/ discharge cycles in a year, for example for seasonal storage or as peak capacity. Batteries in consequence are very unlikely to be suitable for seasonal storage, at least with current or anticipated battery chemistries. Seasonal storage remains one of the big unresolved questions for geographies, typically in temperate climates, with strong seasonal loads. The most promising avenues to a solution for seasonal storage are currently seen as forms of chemical storage (e.g. hydrogen or ammonia), heat storage (for heating purposes), or possibly hydro storage in favourable geographies, rather than batteries. Some of these options will have much lower overall energy efficiencies of around 70% or less, compared to the best batteries with conversion efficiencies closer to 100%.

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

The world of energy is changing very rapidly and the increasing emphasis on low carbon sources of electricity generation, combined with an increasing role for electricity in heat and transport, is raising new questions. Intermittent or inflexible features of low carbon technologies are placing an increasing emphasis on energy storage and shifting production and consumption to achieve a real-time balance. Batteries are an important, but by no means the only, element of this story, and compete, in different contexts, with other solutions, such as heat (or cold), storage in dams (hydro power), or “chemical” stores of energy (including conversion to hydrogen), as well as with measures to shift the timing of consumer demand.

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

Since we are now observing the advent of grid-scale battery applications, it will be increasingly important for commercial consumers to understand and take account of these factors if they are contemplating investment in batteries, whether for their own emergency back-up or as a means to make money through operating in the wholesale market or to exploit tariff anomalies. Battery technology is certainly becoming a hot topic for larger commercial consumers, and may soon become a viable option for domestic consumers too, especially as National Grid is contracting for battery storage as a back-up resource.

key nodes within local networks. Commercial consumers installing batteries have several choices to make, one of which is whether to use batteries in demand smoothing mode (internalising) or to exploit arbitraging opportunities in the wholesale market (export).

However, optimal battery deployment in power networks is a complicated question. Today’s wholesale markets and tariff structures are very imperfect and may be quite dysfunctional in the world of fast moving technical change that includes communications and control in power networks. Consumers investing in batteries to make or save money need to look carefully at the options, and the small print in tariffs and contracts. There are opportunities in exploiting anomalies, but markets and utility tariffs can change very quickly, and flexible options are a wise strategy for business consumers.

Arbitraging wholesale markets.

The investment case for batteries rests on three possible sources of revenue or cost saving: arbitrage in the wholesale market where there is regular opportunity to “buy cheap and sell dear”, responding to use of network tariffs that are strongly differentiated by time of day, and contracting directly with the network system operators.

However, network tariff structures are very crude and imperfect economic signals to influence the shape of consumer loads. Exploiting anomalies in the tariff structure can be a zero sum game. Ultimately the network operator is a utility that will be allowed to earn a regulated rate of return. If large customers exploit anomalies in tariffs, the network utility will be forced either to recover more revenue from other customers, attracting regulatory intervention, or to rebalance the tariff. Contracting directly with the network operator.

This is a novel development for network operators but, as shown in the recent auctions, it is a trend that is now under way. It raises the more general question of A wise decision for businesses whether it is more effective considering batteries is to ensure the to have the system operator batteries at facilities investment is as flexible as possible, to managing contracted from the battery owner, “in front of the meter”, allow for direct contracting as well or to try to manage the as managing its own demand. Given system through complex tariff structures which try to second the varying needs of local networks, guess consumer behaviour there might also be a case for making “behind the meter”.

Wholesale prices are expected to be high this winter, in early 2017, but this expectation is critically

“

Batteries, and storage more widely, provide several potentially useful options for power systems: spreading national or aggregate system loads over the day, providing emergency back-up and other ancillary services, and managing thermal and voltage constraints in local distribution networks. A two year trial of the largest grid-scale battery at UK Power Network’s facility based in Leighton Buzzard suggests a major role in the transition towards a low-carbon economy. The latest auction round for back-up capacity is also reported to involve procurement of 500 megawatts of new storage projects. Some new loads, such as electric vehicles, will also increase the role of batteries controlled by system operators, both system wide and at

of supermarkets, options include using a store of “cold” to reduce their refrigeration load.

the batteries trailer mounted. dependent on capacity margins. Additional capacity or less than expected demand growth can dramatically reduce prices and the opportunities for arbitrage. In the medium term, conventional wholesale market structures and assumptions are likely to change in a low carbon economy, reducing the importance of wholesale “spot” prices.

”

Exploiting distribution use of system (DUoS) tariffs. Some published network tariffs have been highly differentiated by time of day, enabling consumers on these tariffs to make very large savings if they are able to move their usage away from peak loading on the local network, for example by using their own battery storage. In the case

A wise decision for businesses considering batteries is to ensure the investment is as flexible as possible, to allow for direct contracting as well as managing its own demand. Given the varying needs of local networks, there might also be a case for making the batteries trailer mounted, to allow further geographic mobility and to meet changing local network needs.

Author’s profile: Dr. John Rhys is a Senior Research Fellow attached to the Oxford Institute for Energy Studies (OIES) and a Senior Visiting Research Associate at the Environmental Change Institute of the University of Oxford. He also chairs the British Institute for Energy Economics (BIEE) seminar programme on energy policy and climate policy issues.

National Grid thinking positive about battery storage

Demand Side Response is an

OPPORTUNITY

System Operator National Grid is strengthening its commitment to the UK’s energy storage community with the creation of a dedicated Storage Working Group. MY

CMY

Its purpose is to provide those involved in storage with a platform to hear the latest industry developments from organisations such as the Department for Business, Energy & Industrial Strategy (BEIS), regulator Ofgem and National Grid. The working group also offers an opportunity for the community to share its concerns or questions on storage directly with National Grid. The first meeting took place in December, with the second set for March. This latest development sits within National Grid’s expanded Power Responsive programme. Created back in 2015 to increase participation in demand side response (DSR), it has since been broadened to represent wider demand side flexibility, which includes a focus on energy storage. In its role as System Operator, the company has a duty to balance supply and demand on the UK’s energy system. And it believes storage technology – which absorbs surplus electricity at times of excess generation and releases it when needed – can play a significant role in this balancing act.

Rapid response Energy and battery storage are particularly valuable because they offer the potential for incredibly rapid response. In the event of volatility on the system, for example, the technology can release power to the grid in less than a second.

National Grid’s commitment to Looking for ways to save on energy costs?

storage was also

reflected in itsstreams introduction the balancing Would new revenue meet yourof business objectives?products Enhanced Frequency Response andharder? Demand Unsure how to make your energy strategy work

Turn Up.

Both provide opportunities foropportunities, battery storage facilities Want to explore Demand Side Response but unsure how? to help manage the grid, earning revenue for their

businesses as they do so. Conference and Exhibition: The 2016 Power Responsive • Hear from our leading industry Demand Side Response experts • Learn how Demand Side Response is benefitting UK businesseson across all sectors Enhanced Frequency Response depends sub-second • Explore your potential route to market in our exhibition space

response from providers. This makes it perfectly suited to businesses with battery assets.

• Partake in the breakout sessions relevant to the questions you need answering

• Come away with the answers to help you take your energy management to the next step us at the Grand Connaught Rooms, calls London on June 16th DemandJoin Turn Up, meanwhile, on providers to where together we can learn how you can become more Power Responsive. at: https://idm360.com/ngprc increase Register demand when demand is low. Once again, this Date: June 16th 2016 is well suited to the use of battery storage. Venue: Grand Connaught Rooms, 61-65 Great Queen Street, London, WC2B 5DA

The System Operator has just run the tender for its Demand Turn Up Fixed Service in 2017. However, there is still an opportunity to tender in for the Flexible Service, which runs throughout the summer of 2017. Interested parties should contact the company’s Business Development Team at commercial.operation@ nationalgrid.com or on 01926 654 611.

Subscribe now Businesses that are interested in battery (and other forms of) storage – and who wish to receive updates and invitations to the Storage Working Group – should subscribe to Power Responsive. You’ll be prompted to indicate your interest in the working group during the registration process. Subscribe on the Power Responsive website www.powerresponsive.com - or contact us at powerresponsive@nationalgrid.com

What is Power Responsive? The Power Responsive programme was established in June 2015 as a stakeholder-led programme, facilitated by National Grid, to stimulate participation in demand side response (DSR). DSR is the term for services that incentivise energy users to turn up, turn down or shift their electricity use in real-time to keep the UK’s energy system balanced. As it moved into its second year, the programme broadened its scope and increased its focus on energy storage and its growing relevance in a future energy mix. A key priority is to turn participation in DSR and other flexible technologies by industrial and commercial businesses into a mainstream opportunity by 2020.

USER’S GUIDE by

GABRIEL HURTADO GONZÁLEZ MEng Energy Manager at Vinci Facilities

Minimum Energy Efficiency Standards The energy management sector is entering a smarter new world of fundamental structural change, underpinned by the ambitious energy saving targets and the introduction of new legislations. Energy management professionals are under constant pressure to fine tune energy strategies to achieve savings, while at the same time confronting issues associated with a heavily regulated energy market. On the 26th of March 2015, the Energy Efficiency Regulations for Private Rented properties was passed into law in England and Wales. These regulations are well-known as the Minimum Energy Efficiency Standards (MEES).The regulations will require Landlords to be fully focused on the energy efficiency of their buildings, and will ultimately result in some landlords making upgrades to their properties in order to ensure that they remain compliant and rentable, without negatively affecting the capital value of their properties.

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

Requirements and scope

The following requirements and scope are enforced by the Minimum Energy Efficiency Standards: • The regulations will be forced upon both lease renewals and new leases from the 1st of April, 2018. All domestic and non-domestic properties are in scope of the Minimum Energy Efficiency Standards. • From the 1st of April, 2023, the regulations will also be relevant to all privately rented properties, including when a property is occupied by a tenant and when a lease is already in place. • The minimum energy efficiency standard will be set at an “E” EPC rating. • The Minimum Energy Efficiency Standards exclude any property which is let on a tenancy which is granted for a term of 6 months or less and any property let on a tenancy for 99 years or more.

above minimum standards if they can demonstrate one of the below: • Despite all reasonable efforts, the landlord cannot obtain the required consents from tenants or lenders, to install the required energy efficiency improvements. • The identified energy efficiency recommendations are above a seven-year payback period. • A relevant suitably qualified expert provides written advice that the energy recommendations will decrease the value of the property by 5% or more, or that the energy recommendations could potentially damage the property. Implications Data from the National EPC register indicated that about 20% of the properties have an EPC rating E, therefore the regulations will have significant impact on the approach of landlords to energy management, and consequently on the vision of energy management in the property sector. The following outcomes are expected once the Minimum Energy Efficiency Standards come into force on the 1st April, 2018: • A soft start in which only new leases will comply with the minimum standards by 1st April 2018. • A phased introduction with a progressive implementation of energy efficiency recommendation from the 1st of April 2018 to the 1st of April 2023. • A hard start affecting new leases and existing leases from the 1st of April 2018. The regulations will also have outstanding implications in the real estate sector: borrowers will have greater responsibilities to actively manage their properties in to ensure that their properties are compliant and that the required actions are taken promptly in order to prevent a void in rental income and insurance, hence increasing the market value of their properties.

Exemptions

What you should do next?

Landlords will be exempt from the

Whilst it is clear that the Minimum

Energy Efficiency Standards will heavily influence the energy management of the properties, landlords should take the following steps in order to ensure that their buildings are complaint: 1. List all their properties which have an EPC, including the date of the EPC. 2. Redo the EPC for those buildings whose EPC is 18 months old or more. This step is recommended because the EPC assessment methodology is reviewed and changed on a periodic basis. 3. Classify the properties depending on their usage and footprint. 4. For those properties whose EPC rating is E, perform an Energy Audit, including potential projects and an economic assessment for each energy efficiency recommendation to identify those relevant projects with a payback below the seven-year threshold. 5. Classify the most common projects for each property type. 6. Perform a thermal-simulation for each building and building type in order to target the most cost-effective projects to be implemented to achieve an EPC rating average D, i.e., 61 points. 7. Systematically implement the energy efficiency projects across all buildings and building types 8. Take action on steps 2) to 7) every 2 years. The Minimum Energy Efficiency Standards will encourage building users and landlords to have a more proactive attitude towards energy management. By taking a holistic approach of their portfolio of properties, landlords will not only be able to comply with the Regulations; but will also be able to implement energy efficiency strategies, therefore, minimising carbon emissions.

Author’s profile Originally from Spain, Gabriel studied his MSc at Cranfield University & Imperial College of London. Since then, he has worked in several projects for several FTSE companies and public organisations. He is a Member of the EMA, he has experience in business development, project management and energy systems engineering.

ANNOUNCEMENT

EMA Courses in 2017 Energy Management in Practice Training Programme The EMA has produced a training programme for individuals interested in gaining the knowledge needed to operate effectively as an energy manager in a workplace. The programme is intended for candidates who are: • Up-skilling their existing energy management knowledge and skills • Re-skilling from other professions such as sustainability, environment, facilities and engineering • Interested in becoming energy managers • Newly appointed energy managers.

The portfolio of courses features established as well as new EMA courses.

• • • •

Fundamentals of Energy Management: 9-10 March, 8-9 June, 19-20 October Lighting – Basic Understanding: 14 March, 8 June, 24 October Energy Assessments, Measurements and Verification: 13 March, 7 June, 18 October Energy Management Strategy: 6 June, 17 October Understanding and Delivering Behavioural Change Programme: 3 May, 20 September, 29 November Energy Procurement: 9 May, 27 September Water Management: 10 May, 28 September Data Course for Energy Managers: 11 May, 26 September, 6 December Become an ESOS Lead Assessor: 30 March, 29 June, 26 October

EMA Seminars in 2017

Understanding the Opening of the Water Market in England: 21 March, 11 April

Many other courses are under development so keep an eye on our website or email jana.skodlova@theema.org.uk

FOR MORE INFORMATION, VISIT www.theema.org.uk

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

• • • • •

TECHNOLOGY by

JAMES NAPIER Director, CCEL

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

Is Corby the Future of the Decentralised Demand Side Community Grid?

Corby Community Energy Limited (CCEL) is building the UK’s first community wide, Demand Side Connected Network, the future business model for utilities in the UK.

flexible, local energy tariffs. Thus providing the people and businesses of Corby with a lower total cost of energy whilst maximising the contribution of local, renewable generation.

The first step is installing connectivity in a wide range of commercial and domestic buildings across the town, thus enabling the real time visibility and control of demand to minimise wasted consumption. The network will then, intelligently, integrate Demand, Embedded Generation and Storage and optimise the total consumption against the needs of the local network. Finally, as an Energy supply business CCEL will combine the trading of local power and the value created by optimisation consumption to monetise the benefits into dedicated,

Building new large scale generation is an old-world solution Debate rages about how much and what kind of generation should be built in the future with, in virtually all cases, whichever outcome chosen being subsidised in some way by the tax payer. Combined this with the cost associated with Government schemes to reduce consumption and 13% of the cost of an average electricity bill in 2015 consisted of Environmental & Social Obligations costs.

What, in essence, this debate re-enforces is a ‘supply led’ system with new generation needed just to meet additional peaks during the winter. It was announced recently that the Government is willing to contract up to £1.6bn of peaking power from old coal and diesel plants to ensure the lights are kept on next winter. All of these costs inevitably filtering down to the consumer and the consequential impact on carbon generated that does not match the Government’s policy of reducing carbon. Managing demand via a connected network is the future But what if we looked at the grid in a different way. What if we could control the profile of demand

Minimising demand, smoothing the profile to permanently reduce peaks and facilitating the integration of embedded generation and storage are all possible with the latest demand side management platforms. They create a dynamic system powered by smart algorithms capable of both permanently eliminating peaks and reacting to short terms need for less, or in did more, demand to be enabled to support the wider needs of the grid. Demand reduction and time of use management integrated with embedded generation and storage can be combined to form a Virtual Power Plant (VPP). VPPs can provide short term support for the grid but more importantly can be structured to permanently effect the profile and peak demand on the network. Our internal estimates are that at least 20% can be taken off peak demand should the whole demand on the network be capable of being actively managed. That’s c10GW, 2.5 Hinkley Point C’s or 2 Drax’s. All of it carbon free and all of it capable of being installed and utilised without the need for addition subsidies. Connected networks are becoming a reality today There are a number of ‘proof of concepts’ being implemented to prove the capability of demand side systems. One of these is Corby Community Energy (CCEL), based in

Corby and driving the establishment of a community wide, connected demand side network capable of providing greater flexibility of the local network and driving lower tariffs by reducing the costs of operation and risk of a supply utility. Nick Bolton, Project Leader of CCEL and co-founder of Electric Corby CIC says: “We have long believed that the effective management of demand is key to creating the sustainable future model for energy management. Heavily focused around a connected community and the delivery of real value through lower tariffs for all consumers, we are working with a highly capable team, including Western Power and Cardiff University to deliver this exciting and innovative solution”. Connected networks are a UK wide solution The challenges against demand side systems have always included ‘Are they truly scalable?’, ‘Is demand management really as secure and as predictable as traditional generation?’ and ‘Do the economics really stack up?’ The answers are simple yes, yes and they can easily be made to. Demand side systems work on fully scalable software platforms with all information hosted on the cloud. There is no reason why these can’t be scaled, in time, to accommodate every KW of demand in the UK. Incentivise via tariff structures and pricing not subsidies

Demand side networks don’t need subsidies just a favourable tariff structure. A greater provision of Time of Use (ToU) tariffs that widen the gap between peak and off peak costs. Incentivising the adoption of management and storage technology and dis-incentivising uncontrolled consumption at peak times. A new ‘Tide’ tariff from Green Energy UK (www.greenenergyuk,com) provides a 3 zone tariff which allows consumers to target costs as low as 4.99p with peak pricing 5x higher. Essentially mirroring the DUoS rates, this type of tariff provides enough of a gap between high and low costs, (c20ppkwh), to incentivise the use of domestic battery storage solutions which have a cost as low as 14ppkwh. Summary With the long term electrification of transport and Government policy which continues to favour electricity over gas, continuing to see, large scale, central generation as a solution is increasing flawed. Implementing a more integrated solution which provides real time visibility and control of demand, elimination of waste and smoothing of demand profiles becomes a much more intelligent solution. Investing £1.6bn in demand side systems would provide, at least, an equal benefit to contracting peaking diesel and coal plants. Furthermore, where as one is an annual cost the other pays for a system that last for years.

EXCEL LONDON t 22 nd —23 rd NOVEMBER 2017

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

and manage consumption to the available supply rather than simply ‘cope’ with what’s being demanded?

CASE STUDY

Oxford Brookes University: an Education in Energy Savings

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

anaging energy consumption on a university campus can be an extremely challenging task for even the most experienced of energy managers, but it is one that Oxford Brookes University (OBU) has been committed to for many years. So naturally, when a 10-year refurbishment plan was announced for the university estate, delivering improved energy efficiency and lower carbon emissions was high on the agenda. As a pathfinder organisation for Low Carbon Oxford, OBU is dedicated to helping achieve the aim of reduction of 40% in city-wide emissions by 2020. However, with five campuses and 14 residential sites across Oxford and Swindon, the University had a requirement to effectively manage energy consumption and carbon emissions across multiple sites. Equally fundamental was ensuring that the university’s excellent reputation for teaching and research was matched by a high-quality estate.

Opportunity The university estates management team identified lighting as a key area to target across all campuses and sites. Placing this amount of emphasis on lighting is perhaps not surprising, given the fact that it can account for around 23% of a typical universities’ energy costs. Whilst it was inevitable that lighting would always form a significant percentage of the university’s energy costs, Oxford Brookes University understood that through effective control and management this expenditure could be kept to a minimum. OBU is one of UK’s leading modern universities and boasts an international reputation for teaching excellence and innovation, having led many ground-breaking research projects. This is widely reflected in the modern, well-equipped spaces across each campus which both inspire student learning and enhance

campus life. A key requirement, therefore, was ensuring the university’s lighting portfolio was equally innovative and utilised the latest in cutting edge technology. With a requirement to make all campuses and buildings as energy efficient as possible, Oxford Brookes University worked closely with leading wireless lighting controls manufacturer Harvard Technology to deliver a lighting control solution that would provide a full-campus solution. As a leading academic institute, OBU wanted to exploit communication technology across campuses to ensure the specified system was capable of linking wirelessly with existing Building Management Systems already installed on-site. This would enable the institution to track how much energy was being used and areas in which improvements could be made.

Lessons in energy savings Oxford Brookes initially installed the solution in two buildings, the Lloyd Building and the International Centre, together with new efficient LED fixtures. Initial savings exceeded all expectations, reducing the new LED lighting load by 30% in the International Centre alone, thanks to the implementation of control strategies including daylight dimming and occupancy detection using sensors to ensure lights were only turned on when required. Top grade challenge The university required a flexible system which could control the lighting across all campuses. The system needed to be less complicated than the wired systems already in use across areas of the estate and yet compare favourably in terms of price. Oxford Brookes also wanted to avoid reliance upon the expertise of individuals, who could ultimately leave the University and create a knowledge gap. Furthermore, from an energy viewpoint, a major challenge was meeting the university’s stringent sustainability targets in key areas including: energy, carbon and on-site electricity usage. From old school, to new school The Oxford Brookes University estates management team worked in partnership with the manufacturer to ensure that the most efficient and

Subsequent tests, in accordance with the Chartered Institute of Building Service Engineer’s (CIBSE) interior lighting guide, revealed that luminaires were generally 15% to

45% brighter than they needed to be for the tasks being undertaken. Lighting levels were subsequently capped, leading to a further 27% reduction in energy consumption, and a total saving of 48% of the new LED lighting load, equivalent to £13,000 per annum. The reduction in the output of LED luminaires further extended their life and reduced maintenance costs. So far, Oxford Brookes University has installed the system across three of its campus buildings and as a result of savings made, further roll out is planned across more sites, including student accommodation..

“

We never thought that we would be able to achieve such impressive savings by implementing a lighting control system. We are now looking to roll out EyeNut across further sites, including student residence blocks.

”

Steve Holtom | Electrical Services Manager | Oxford Brookes University

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

appropriate solution was specified. An innovative cloud-based, IoT enabled, remote access, wireless control system solution for indoor lighting provided the perfect platform on which to deliver the energy savings the university required. The system gives users the freedom to commission, configure and completely control lighting with multi-site control from a single intuitive hub. It can be accessed through the internet on a laptop, tablet or smartphone and offers an overview of different sites, showing real time data such as energy usage and savings as well as possible lamp failures.

TECHNOLOGY by

EDWARD LEES

Senior Product Line Manager EMEA - Lighting Controls at Feilo Sylvania Europe Ltd

The Future of Lighting With lighting accounting for at least a third of a commercial building’s energy consumption, the specification of an effective lighting system can have a significant impact for those looking to save energy and cut costs. If energy and facilities managers simply upgrade the lighting scheme from traditional technology such as fluorescent to an LED light source they can benefit from significant energy savings of up to 50%. But, what if you’ve already switched to LED, what is the next step to continue saving? The potential for further energy savings can come from lighting controls. Lighting controls come in all shapes and sizes with varying levels of additional energy saving potential. These can be difficult to install requiring lots of new controls cabling or require extensive, complicated and expensive programming such as DALI and offer limited flexibility to space changes thus becoming redundant in a relative short time which can lead to a poor user experience.

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

There is a new solution available today known as an intelligent, de-centralised lighting control solution. Such solutions place the lighting controls inside the luminaire at the point of manufacture and utilise wireless controls to not only control the lighting but also

auto-commission themselves and provide an unparalleled controls experience without the need for extra cables or extensive programming. Simply connect power and that’s it. With such luminaires, energy and facilities managers can save a further 68% on their energy usage compared to a non-controlled lighting system and represents significant on-site savings, as well as a much smoother specification, design, installation and commissioning process. Such systems also have the capability to adjust to changing surroundings, such as reconfiguring an office space with new partitioning, without any further programming. By installing this type of system, users are not only saving energy but reducing installation and ongoing operating costs. But why should savings from an intelligent controlled lighting system stop at just saving money on lighting costs? With an array of sensors installed in the luminaires all across a building, users have a unique opportunity to extract data from each sensor to understand the operation of their building and the actions of the occupants within the building: their presence, movement patterns and typical behaviour. This data can then be collected on a secure cloud

based platform where, using a web based browser, energy managers can gain insights into the actual usage of a building. The data can be turned into meaningful information empowering users to make further cost efficiencies across their estates on lighting consumption but then extend this beyond lighting to affect other systems to reduce energy and costs in other areas and provide insights into effective Energy Savings Opportunity Scheme (ESOS) strategies for many years to come. The constant stream of data allows energy managers to keep pace with the latest regulations and targets set by government. For instance, the latest target to be set for large organisations (employing 250+ or with a turnover in excess of €50m) is the ESOS. Effective lighting control can help companies meet their ESOS obligations as each luminaire is capable of recording their actual energy use giving more precise facts on costs and allows allow energy managers to identify by exactly how much that business can save in energy. The benefits of having sensors built into the luminaires are also highlighted when it comes to maintenance and diagnostics. Thistype of lighting solution will speak to users and let them know

Has your ESOS report identified lighting as a key savings source? REDUCE YOUR LIGHTING ENERGY CONSUMPTION BY

84%

WITH NO CAPEX Combine the very best LED savings (-50%) with the best in class integrated control system (-68%)1 achieving the highest score for lighting control on BCO and BREEAM. Easily achieve the above savings with Organic Response controlled luminaires from Feilo Sylvania. We are proud to offer you a simple and cost effective solution for your lighting needs. By installing our range of Organic Response enabled luminaires; upgrading your building’s lighting scheme has never been easier. Once installed with just a simple mains connection, the luminaires automatically configure themselves to communicate with their neighbouring luminaires, resulting in installation costs typically 25% lower than other controlled lighting installations and with no commissioning required ensures your building is ready to use as soon as the luminaires are connected.

Concord Officelyte LED Luminaire with Organic Response integrated control

The system is fully retrofittable with no control cabling required and integrates easily with your building management system.

MAKING THE SOLUTION BUDGET NEUTRAL Don’t let the thought of financing a project hold you back. Feilo Sylvania’s LOGIC Finance Solution enables you to realise your project. LOGIC is budget neutral with no large up-front costs, just simple, manageable, monthly re-payments – typically lower than your existing lighting costs with the additional benefit of saving long after the finance term ends, enabling you to focus on your business.

ENERGY MANAGERS ASSOCIATION ENERGY PRODUCT OF THE YEAR 2015

Example OPEX

Finance

Existing Monthly Costs New Monthly Costs

Contact us today to see how we can help you to start saving tomorrow! 1 Team Catalyst, Lighting Art + Science, William Street project, 2014. Copies available on request.

www.feilosylvania.com

Tel: 0800 440 2478

info.uk@feilosylvania.com

Cost

when there is a problem. If the luminaires fails it will tell the user why and, more importantly, it will tell them where it is in the building. This all happens in real time using notifications so maintenance can be undertaken and issues rectified quicker.

Offices (BCO) also shows that, even in organisations that have introduced flexible working styles, in the expectation that utilisation rates would increase substantially, occupancy levels very rarely exceed 80%, and more typically run at 60–70%.

Smart lighting systems can also help reduce total building operating costs. With property prices so high it is essential that building owners utilise every square metre of space as efficiently as possible, reducing their costs at the same time.

If the smart sensor that is integrated within a luminaire in a meeting room detects very little usage of that room, then it could be converted to other uses – perhaps to provide more desk space, encourage collaborative working spaces, or help define open desk policies helping to increase the efficiency of desks per employee. It will also encourage more energy

What do the research figures state?

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

Over the past five years the Advance Workspace Associates (AWA) has undertaken many workplace utilisation studies for major UK organisations. The consultancy now has extensive data covering about 75 buildings, 36,100 desks, 542 hot desks and 728 meeting rooms. Their study has revealed the followings:

• Meeting room utilisation in most buildings is very poor with on average 39% of meeting rooms being used for the time they are available. This picture however becomes even worse when the degree to which the seats in meeting rooms (i.e. their total capacity) is examined. Just 19% of meeting room capacity is being used. So in general, meeting space capacity is poorly used but the worst-used spaces are meeting spaces located in open plan areas where average utilisation falls to 9%.

efficient working, move people who are often in office nearer to windows and use more natural light resources.

• The percentage of desks observed to be actually occupied is just 48%. Average utilisation where the desk is occupied or there are ‘signs of occupancy’ rises to 59%. Unsurprisingly occupancy dips on Fridays.

With access to real-time data on the occupancy of the office, energy managers can dynamically open and close entire floor areas where no presence is detected. According to AWA Research, this could equate to a 30% reduction in floor space and thus not only reduce lighting related energy use in that space but also that of any other using service in that area which could help reduce total energy consumption of the building by up to 30% compared to 7.5% by only installing the most energy efficient lighting.

Another empirical work conducted by the The British Council for

The same data can be also used effectively to affect ancillary service

costs such as cleaning, security. With no need to clean unused areas and less need for a security guard to patrol buildings, McKenzie research reports that savings of between 20% and 50% could be achieved. Having a network of smart sensors can also help co-ordinate catering more effectively. By analysing the heat map generated by these sensors, the canteen can be informed of the occupancy of the building so they can plan food preparation accordingly and reduce wastage. Energy only needs to be used where people are. Energy managers who install a network of luminaires with integrated smart sensors, can ensure that, throughout their property portfolio, no energy is wasted in empty meeting rooms or half empty office spaces, and that the environment is optimised for their colleagues’ comfort. Smart lighting systems present a huge number of opportunities for energy and facilities management professionals looking to increase their energy savings, with the collection and interpretation of data fundamental in this process. The data acquired by these systems is estimated to potentially deliver cost savings 7 to 12 times larger than lighting energy savings alone and is the key to enabling decisions based on facts whilst also delivering maximum operating efficiencies. De-centralised intelligent lighting is now easier and more cost effective to install than ever before and will be able to deliver unprecedented insights. References • Utilisation of the Office - Report AWA (2015) • Occupier Density Study BCO (2013) • The Internet of Things: Mapping the Value Beyond the Hype McKinsey Global Institute (2015)

OPINION by

THE ENERGY MANAGERS ASSOCIATION

How you can get the Board to listen. their company. Any Board member has a duty under law to make sure that the company is being properly managed and that they have taken into account any potential risks the company faces. If the company is not taking energy seriously and the budget of the company could be affected by a hike in fuel prices they need to be made aware of this risk.

One way to do this is to remind them that they have a fiduciary duty to understand the financial stability of

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85% S A V I N G S C ARBON FOOTPRINT L I G H T I N G

C O S T S

W A R E H O U S E S F A C T O R I E S PRODUCTION AREAS DISTRIBUTION CENTRES G A R A G E S SPORTS CENTRES STORAGE UNITS COLD STORAGE

A simple note to the Chief Executive or to the Board highlighting the potential risks associated with energy and the impact they will have on the balance sheet should get their attention. Here are the three areas of risk they should be asked to consider. The first is price; the old refrain that companies often look at cost not use could work in your favour. Following the collapse in Sterling, as a result of the Brexit vote, fuel this year will be between 15 and 20% higher. This is not a Remain argument but simply the reality that the UK imports most of its fuel and pays for it in dollars. Therefore fuel which is usually bought a year ahead is now starting to be a lot more expensive. The historic low in oil prices, caused by a glut in the market, is at an end. The agreement by the major oil producers to cut production is already having an effect. The underlying costs of oil which hit a low of $44 last year is now up to around $56 and will probably hit over$70 next year. Considering oil was $110 in 2011, the price of oil could go a lot higher, and as oil prices are linked to gas, gas will also rise. The short term fixes such as switching will only have a short term benefit as all the energy companies will be forced to raise prices to reflect higher commodity costs. This begs the question, how many Boards have built in a 20% rise in fuel costs for this financial year? Unexpected energy prices could bite straight into the bottom line and there are a significant number of companies on tight margins

THE EMA MAGAZINE â&#x20AC;˘ ISSUE MARCHâ&#x20AC;&#x201D;APRIL 2017

Boards are strange beasts; they will focus all their attention on areas they are interested in and completely ignore others. The trick is how to get them to focus on energy?

37 Let there be

light

t . e .

01564742143 infouk@lumiqs.com

OPINION

EMEX 2017 CALL FOR SPEAKERS IS NOW OPEN UNTIL 30 JUNE www.emexlondon.com

THE EMA MAGAZINE • ISSUE MARCH—APRIL 2017

such as retail who will be vocal about the price rises and calling for politicians to do something. This will be pointless as no politician will be able to make any real impact on energy prices as the UK already has one of the most competitive markets and some of the big six are clocking up losses that might lead to them exiting the marketplace. Use not price is going to be the issue and making sure the Board is aware of the limitations of competitive prices when the underlying costs are going up is key.

Green crap as David Cameron referred to all non-wholesale costs is the second area that should be looked at. It is often assumed that a high proportion of the bill is spent on renewables. Whilst a fair amount has in the past been spent in this area, the majority of subsidies to renewables have been reduced or done away with entirely. The largest amount of the non-commodity bill is tax that goes straight to the Treasury. The confusion is due to the name of the taxes such as the Carbon reduction Commitment or the Climate change Levy. These taxes were set up to meet the cost of decarbonising energy generation in the UK but have since 2010 really been treated as general taxation. The likelihood of these taxes being slashed is virtually nil as the money would then need to be found in more politically sensitive areas. The introduction next year of the Business Energy Efficiency taxation

regime will simplify the landscape by putting all the different taxes and levies into one scheme based around CCL reporting. Each year a report may be presented to Boards showing that over 60% of their fuel bill will be tax and this proportion is set to rise over the coming years. Finally security of supply and the measures needed to address it will become a major issue for companies. The UK dodged the bullet of power cuts this winter but the cost was eye watering. Two coal powered plants were kept on cold standby at a cost of £76 million. These temporary fixes to the underlying shortage in generating capacity is not sustainable. Britain has kept prices down by not investing in new plant. The way the Government presently is handling the issue through Contracts for Difference (CfD) is making the system worse by rewarding diesel generation. The only way the System operator will be able to manage demand and supply imbalance is almost certainly going to be through price. Time of Use tariffs will be used and could have a major impact on companies that cannot avoid these periods of energy use. The risk of high prices or potentially loss of power could threaten the financial security of your company. Taking all three issues together and making a submission to the Board headlined ‘Urgent Financial Risk’ may be a way of getting their attention.

SUBMISSIONS FOR THE EMA ENERGY MANAGEMENT AWARDS 2017 ARE NOW OPEN IN THE FOLLOWING CATEGORIES: • Energy Manager • Junior Energy Management Professional • Energy Management Team • Energy Management Consultancy Service • Energy Reduction Product • Best Implemented ESOS Project • The Most Inspiring Energy Reduction Project • EMA Member – nominated by the EMA • Energy Reduction Project through Organisational Behaviour Change For more information, please contact the EMA on 0203 176 2834 or email Edita at edita.krupova@theema.org.uk

THE 2017 MUST-ATTEND EVENT FOR EVERYONE WANTING TO INCREASE THEIR ORGANISATION’S ENERGY EFFICIENCY AND TAKE POSITIVE STEPS TOWARDS SUSTAINABILITY.

EXCEL LONDON t 22 nd —23 rd NOVEMBER 2017

www.emexlondon.com

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