The EMA Magazine I May-June 2016

THE EMA MAGAZINE www.theema.org.uk | ISSUE MAY–JUNE 2016

LED LIGHTING PROJECTS Practical guidance and top tips

The EU: Brexin or Brexit?

How will it affect cost and security of energy?

DYNAMIC RESPONSE The Energy Management Holy Grail?

ELECTRICITY PROCUREMENT Unlocking the maximum potential for energy price and contract terms

Tate Modern Extension. View from the South at dusk © Hayes Davidson and Herzog & de Meuron

FOCUS

Career and Training

Making energy saving lighting more affordable The typical savings achieved by adopting new LED lighting technologies can deliver savings of 80% off the lighting bill, with quick paybacks of 2-3 years Selecting the right LED solution is often the biggest challenge with ever tightening budget restrictions. Often the cheaper product can deliver a good return on investment, however the quality of these products is often comprised to meet a lower price point resulting in sacrifice on the key benefits of LED technology being efficiency, operational life and reliability.

To address these challenges Thorlux Lighting, a UK manufacturer, designs with

a firm focus on quality and performance which delivers the best reduction in whole of life costs.

If the right investment is made, cost of ownership is significantly reduced with increased savings delivered over operational life.

Thorlux recognises that most businesses have a want/need to save energy and reduce carbon usage, however can be financially restrained in selecting the right solution.To help address these key barriers to integration, Thorlux have chosen to re-invest their profits into financing end user projects including supply and install.

Financing options include hire purchase to support a capex budget or rental to overcome the issue of not having a budget, all paid for from the delivered savings.

Thorlux’s installation team ensure that everything runs smoothly, problem free with no hidden costs along the line, with options for an onsite warranty or a maintained arrangement.

With this approach end users can address larger projects without being restrained by a budget, be subject to little or no risk whilst harvesting the best possible savings.

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contents EMA MAGAZINE

EDITOR’S LETTER

4 6

CEO’s LETTER

Lord Redesdale

LATEST NEWS TPIs, Eurostat, Ignite Energy and data centre power use

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FEATURES

10 THE eu: brexin or brexit?

ENERGY MANAGEMENT = SEX 12 dynamic response 14

How will it affect cost and security of energy?

Cheesy as it sounds, there are a lot of similarities

The Energy Management Holy Grail?

INDUSTRY FOCUS

CASE STUDY

30

GRUNDFOS PUMPS

TECHNOLOGY

BUYER’S GUIDE

32 LED LIGHTING PROJECTS 34

18 ELECTRICITY PROCUREMENT

POLITICS

16

HOSPITALITY An interview with Bourne Leisure

Unlocking the maximum potential for energy price and contract terms

CONTROL LIGHTING Myth busters ­— Q&A

28 18

Practical guidance and top tips

38 40 Spring budget

debates OVER ENERGY

DOES IT MEAN TO BE AN 20 WHAT ENERGY MANAGER AT TATE? THE EMA AWARDS 22 CAREER PATH IN 26 ENERGY MANAGEMENT Could your Job Become a 28 Career in Energy Management?

Updates on the questions raised about energy in Parliament

Well done George

28

THE EMA MAG AZINE • ISSUE MAY 2016

CAREER & TRAINING

3

CEO’s LETTER Rupert Redesdale

by

Chief Executive, The Energy Managers Association

THE EMA MAGAZINE EDITORIAL

Welcome to the first issue of the EMA MAGAZINE This magazine will serve as an extension of the Energy Managers Association’s (EMA) activities and initiatives with the ultimate goal of spreading knowledge and best practice amongst our membership and the wider energy management community.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

We entertained many ideas of how to serve our members better, how to pique their interest sufficiently and how to add value to what we do, and so we have designed a magazine for energy managers by energy managers.

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I wanted something easy to read, yet informative, with a focus on original content.

We would welcome any suggestion on future articles or topics you think should be covered and how we should develop over the next few issues.

Special thanks go to my team at the EMA and the EMEX team without whom this would not be possible. We all believe in sharing best practice and developing the energy management community.

The first issue of The EMA Magazine features articles on energy management best practice at Bourne Leisure, lighting technology, procurement, and prominence is also given to the Tate and London Metropolitan College energy managers. We hope to keep the content as varied and interesting as possible, I hope you enjoy it!

All the best,

Rupert Redesdale CEO of the EMA

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, Kit Oung, Jana Skodlova, Nicky Maclaurin, Dr Vassia Paloumbi, Stuart Kirk and Rachel Ward.

ART COVER © Hayes Davidson and Herzog & de Meuron 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 Sarah Beaman sarah@emexlondon.com 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. © 2016 HEELEC Limited, 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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THE EMA MAG AZINE • ISSUE MAY 2016

LATEST NEWS

Eurostat rules hold back energy efficiency across the EU Member States A survey* conducted by 15 EU Member States suggests that Eurostat rules on public debt and deficit have a negative impact on investments in energy efficiency in the public sector.

The issue of the EU accounting rules hindering investments into energy efficiency is a reoccurring aspect because the rules act as a disincentive rather than a lever to govern-

ments’ energy efficiency investment programmes and development of public energy performance contracts markets. As a result of the survey, a letter with four different approaches to review the accounting treatment for energy efficiency investments has been signed by 57 representatives of the industry and sent to the European Commission.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

Accounting for energy

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The Energy Managers Association has identified that many energy managers often face the challenge to build the financial justification for their projects. To assist the professionals in energy management to overcome this challenge, we have partnered with Ignite Energy – EMA Patron and are pleased to announce the development of the ‘Accounting for Energy’ course.

Rob Deverson, Director at Ignite Energy explains: “Throughout our 20 years of practice we can confidently claim that there is a pressing need for creating a much stronger link between Energy Managers and Financial Directors, as it remains a crucial part of securing commitment for investment in energy reduction projects. We are

delighted to work with the EMA on the course for energy management professionals to overcome this issue.”

The course is planned to start from September 2016 and will cover areas including how to make energy a controllable cost within a large business, budgeting processes, ROI and ROCE evaluation, helping energy managers to navigate their own financial systems and also provide case study evidence of what is achievable and has already been delivered.

Ignite Energy – consultancy with specialised knowledge of building investment cases for large national energy management projects for FTSE 250 companies (www.igniteenergy.co.uk).

*The survey was initiated by the European Association of Energy Service Companies and the European Federation of Intelligent Energy Efficiency Services who co-administrate the European Code of Conduct for Energy Performance Contracting, together with the Member states’ National Code Administrators.

ENERGY EFFICIENCY IS PAVING THE WAY IN THE US WITH 2.5 MILLION JOBS CREATED More than 2.5 million Americans work in the clean energy sector, with the vast majority employed in the energy efficiency sector, a new study shows.

The ‘Clean Jobs America’ report, written by Environmental Entrepreneurs and based on an extensive survey and US Bureau of Labor Statistics data, indicates that to date 1.9 million US citizens are employed in the energy efficiency sector.

The Capacity Market presents businesses with a unique opportunity to earn new revenues from Winter 2016.

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THE EMA MAG AZINE • ISSUE MAY 2016

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LATEST NEWS

Data centre power use is out of control of companies do not define energy efficiency objectives, casting doubts over both how they are monitored and their CSR strategy contribution.

The impact of data centres on corporate social responsibility (CSR) strategies is being hidden by the lack of clear energy efficiency definitions.

Nearly all (95%) of companies said they are measuring efficiency, yet, 55% still do not have configuration management in place. This is despite 88% of IT leaders saying that design and operations of their data centres are an important part of CSR strategy and 97% saying that improvements to monitor the environmental impact of data centres are needed.

According to global IT and data centre consortium The Green Grid’s “EMEA Research on Data Centre Energy and Resource Efficiency”, 43%

Roel Castelein, EMEA marketing chair at The Green Grid, said: “Whilst organisations are always looking to maximise their CSR, by not implementing

clear definitions of what constitutes energy efficiency, many IT leaders are failing to tap into the contribution that data centres could provide to achieve these results.

“This lack of definition also makes it difficult for organisations to measure and monitor how the data centres could be improved over time to become greener.”

The survey took into consideration the views of 150 IT decision makers at end-user organisations, including companies who run their own data centres as well as colocation data centre providers, from the UK (50), France (50), and Germany (50) on data centre resource efficiency.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

Should Third Party Intermediaries (TPIs) be regulated to make sure their costs are transparent?

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A major concern of energy managers has been whether they have had a fair deal when buying energy. It is a complicated field that often requires specialist knowledge or advice (see the article on procurement p18-19).

This is the main reason why companies turn to energy brokers or TPIs for advice and help in finding the best price and arranging contracts.

Many TPIs provide excellent service, but the EMA has had numerous complaints that there are many that do not. Considering the amount of money involved, why is this market unregulated and why is transparency of costs not available to customers?

made available by the suppliers; this mean that customers will be able to check the prices charged by TPIs. OFGEM has been working on a Code of Conduct based around transparency for a number of years, but seems unwilling to implement it and has recently been waiting for the outcome of the CMA report.

for outside bodies to run the code, we will certainly bid to undertake this role. TPIs and suppliers codes are not primarily focused on the customer. As a demand side trade body, if we were to run the code, we would work with the energy management community to ensure that it gets fair and transparent contracts with energy brokers.

The EMA has put together its own Code of Practice to try and get TPIs to be more transparent, a copy of which can be found on the EMA website.

However, with the CMA report coming out in June, the EMA hopes to support a mandatory code.

Following the Competition Market Authority (CMA) review, it is very likely that OFGEM will need to act.

One of the recommendations is that the cost of power will need to be

The EMA has therefore suspended signing up companies to the EMA Code of Practice until after the CMA final report is published. If OFGEM then mandates a code and tenders

From the feedback so far, the industry has been reluctant to put its own house in order; we will be calling on OFGEM to now introduce a regulated code. Any code will need to protect customers most especially SMEs who do not have the knowledge base to see if they are getting ripped off. The government has been keen to promote switching; it needs to enforce transparency so the customer can make an informed choice.

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THE EMA MAG AZINE • ISSUE MAY 2016

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9

FEATURES Rupert Redesdale

by

Chief Executive, The Energy Managers Association

The EU:

Brexin or Brexit?

Most energy managers will have a personal view on Brexit or not to Brexit.

However, in their role for advising the organisation that they work for, the real criteria has to be risk. Brexit will affect the cost and security of energy.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

The UK is dependent on importing significant amounts of its gas and electricity. The most optimistic outcome from Brexit would be business as usual. The worst case

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scenario is that we would pay considerably more for the energy we import by being outside the Single Market.

The Department of Energy and Climate Change (DECC) has stated that the cost of energy will be higher if we leave the European Union, mainly due to paying spot price costs for energy from the continent. Those in the exit camp believe that flexibility and less bureaucracy will lead to a more competitive energy market. The problem is that, if the price is higher, even the most competitive market will still be more expensive. Brexit will have

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Security of energy supply

It has been a core idea of the EU that a single harmonised energy market safeguards the security of supply better than a fragmented one. However, when examining the complexity of the EU energy policy and its impact on the national policy goals, two aspects of the EU–UK energy collaboration spring up: plant closure flexibility (or a lack of it) and interconnectivity.

One of the UK energy supply areas in which greater EU flexibility would be welcomed is the prescribed closures of older plants due to the strict emission limits on pollutants. Nobody doubts the need for the strict emission limits for new power plants and older plants’ closure or clean ups (2015 – under the EU Large Combustion Plants Directive, and by 2023 – under the Industrial Emissions Directive), but these restrictions have a deepening impact on already low UK energy supplies. The caveat on this position is that most of ageing coal plants are already becoming uneconomic.

Another aspect to consider is the significant and constantly growing proportion of Britain’s electricity and gas that is supplied through interconnectors from Europe. Of course, this is not going to change in the event of the UK’s exit from the EU, but remaining a member of the harmonised market will make it easier for the UK to negotiate the delivery of power and gas at times when Europe as a whole is suffering shortages.

2

EU Energy Efficiency Directive

The 2012 Energy Efficiency Directive establishes a set of binding measures to help the EU to reach its 20% energy efficiency target by 2020; all EU countries

are required to use energy more efficiently at all stages of the energy chain.

At present, possibly the most prominent part is Article 8 of the Directive, ‘translated’ in the UK as the Energy Savings Opportunity Scheme (ESOS) Regulation. The ESOS, in its first round, identified thousands of cost-effective opportunities, some already introduced and being implemented across many qualifying large enterprises.

Whilst for some a tick box exercise, DECC estimates an annual reduction in energy consumption by 3 TWh which could represent a £250m saving on energy bills. With these potential benefits in mind, one would expect that the UK’s commitment to ‘ESOS 2’ would remain, especially if the upcoming changes to the UK business energy efficiency taxation reporting framework could be simplified and re-designed through the prism of the ESOS.

3

EU Emissions Trading Scheme (EU ETS)

The UK, as an EU participant in tackling climate change, is committed to meeting its emission targets. It is unlikely that the UK climate change goals will alter as they are legally binding and have been set at a national level under the Climate Change Act 2008.

However, even if Britain unties its emissions reduction targets from the EU, we still have legally binding British national targets and international agreements under COP 21 that will need to be met.

4

EU Renewable Energy Directive

The Renewable Energy Directive has been in place to help the EU meet its renewable targets by using biomass, wind power, solar power, hydropower and geothermal energy. Individual EU members have adopted their national targets and the UK has agreed that, by 2020, 15% of its energy will come from renewable sources. Even if we were to leave Europe, It is unlikely that the UK would not need to increase significantly the amount of energy it needs to generate from renewable resources.

Irrespective of where your position lies on the UK–EU issue, as the referendum looms nearer it will be impossible to escape many more questions, news and articles elaborating on the business and economic cases of staying or leaving the EU. The position of the EMA is clear, we think that it will make energy more expensive and therefore make Britain less competitive. If the only issue was energy, then to Brexit would be a really bad move.

THE EMA MAG AZINE • ISSUE MAY 2016

higher costs and make companies less competitive with their European competitors. The government could subsidise energy costs, but this would probably negate the financial argument in favour of leaving. Here, we have outlined some of the arguments that you may be asked to comment on:

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FEATURES KIT OUNG

by

Director - Energy Savings, Energy Efficien:ology

Energy Management = SEX The title of this article sounds cheesy… but I have got your attention. Most practicing energy managers are adults, have many years of experience in both subject matters and know the difference. Cheesy as it sounds, there are a lot of similarities between energy management and sex, and there are many transferable knowledge and skills.

F 1

or the launch of the EMA Magazine, let’s take a lighthearted journey of SEX, I mean, energy management…

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

Everyone is doing it, yet people are ‘shy’ to acknowledge it.

Many people are switching off lights at home, powering down the TV before bed. Some people are turning down the thermostat in preference for thicker clothing or voluntarily reporting a faulty air conditioning unit or leaky windows and doors.

There are people who are consciously replacing their light bulbs with LEDs, taking the bicycle, car-pooling or taking public transport and looking at energy labels when buying new appliances. All of this has an impact on reducing energy consumption at home and at work. Yes, many do it for non-energy saving reasons, but the effect is the same: you already know how to save energy and are doing it.

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Those new to it want lots of it, and they want it quick. Those who become aware of their daily activities and energy savings, tend to want energy savings as if there is no tomorrow. Although these efforts and aspirations are commendable, just like any daily routine, people do not save energy 24 hours a day, 7 days a week. There will be time to convince others to join your cause. Some times, it is just not the right time: you need to focus your attention to other activities; you are in the middle of a crisis; saving energy hinders your ability to do productive work; you need to coordinate with others for the perfect time to get things done.

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It is fun when people other than yourself are involved. An interesting observation is that when it comes to energy management, many would pre-

fer to go at it solo. Experience shows that you will need to involve people for generating ideas and cross-fertilising ideas to make them better. You need to get colleagues on-board; seek cooperation; obtain permission and/or resources for implementation; and sustain the achieved savings. Evidence from psychology and social science indicates that celebrating successful endeavours as a team is often more enjoyable and motivating than solo celebration. It also encourages further collaboration that brings about more energy reduction. Engaging people also soothes personal egos and may help you achieve success faster.

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Many are obsessed with acquiring new toys, but it is using them at the right time that counts. As most want to undertake energy management on their own, they rely on applying energy efficient technologies: buy the latest electric car; retrofit with the greenest condensing boiler; install the coolest LED light. Research

by Cambridge University and the Fraunhofer Institute

suggests that there are technologies to reduce 70% of all energy consumption. Yet, on a global basis, figures from International Energy Agency reports a 1% reduction due to energy efficiency. In fact, there are simpler means to achieve energy savings. As an alternative to LED lighting, you can either turn off the light or reduce the number of light fittings in the room. In the case of boiler retrofit, the heating system may operate at a set point at which condensation does not occur.

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What works for one might not work for another.

As discussed before, there are many tools and techniques available in the market and not all will suit your needs and expectations. There are relatively few that meet everyone’s needs universally. The selected method needs to fit the context of the situation. It’s good practice to learn about them to find out how they are applicable to you. Once you have made the selection, many also assume that buying energy efficient equipment would automatically result in reduced energy consumption. This is far from the truth — they also need to be installed and implemented correctly. Finally, the new method of operation needs to be reinforced and embedded until it becomes a normal habit.

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Too much of a good thing can leave you bored and drained. Many also think that energy management is about applying a series or barrage of best practice tools and techniques. Energy management efforts can become tiresome, boring, and burn you out if your practice is purely to implement best practice.

In fact, too much best practice can be a bad thing if it does not support you or move you in the right direction.

So, a masterplan of where you want to be, mini steps of getting there and time-frames to check progress are essential.

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There you go, seven transferrable skills from SEX into energy management. While I am almost 100% certain that you will be having more sex than energy management, you are all energy managers… even if at an amateur stage. So, next time you are about to get between the sheets, ask yourself if the energy consuming equipment needs to be ON? If not, consider turning it off or down and save some dosh.

THE EMA MAG AZINE • ISSUE MAY 2016

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Good practices can be learned. As with all good things, good energy management practices can be learned. It does not require you to be schooled up as an energy engineer or be capable of doing detailed technical stuff. As it turns out, a basic grounding of technical skills, a good glug of people skills, a sprinkling of an inquisitive mind and a bucket load of common sense can go a long way to great energy management.

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13

MADE IN BRITAIN

FEATURES Rupert Redesdale

by

Chief Executive, The Energy Managers Association

Dynamic Response

The Energy Management Holy Grail?

The UK may well have 35% less generating capacity in 2020 than at the beginning of 2016.

The UK electricity regulator, Ofgem, believes that demand response will help to balance the National Grid, however this is unlikely to happen as there is very little financial incentive to do so.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

The introduction of battery technology could allow owners of sites, such as office blocks, hospitals or schools, to flexibly manage their own power consumption. However, the problem is based around the economics.

How do we make storage financially attractive?

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Dynamic Response is a new concept that the EMA is promoting. It might not sound novel but stick with us.

The idea is simple; sites would charge their batteries at cheap rates when there is excess demand capacity on the Grid, much of it generated by renewable sources, and drop off the Grid and use the batteries at peak usage times. So far, it looks like a traditional DSR model; however, instead of being told when to reduce demand by the network, under Dynamic Response, the asset owner at site would be able to bid and be paid to drop off the Grid at a time of their choice, with the amount and the period set by them. This would

increase the value of the demand reduction and create a flexible and dynamic marketplace.

Currently, the Grid pays for generators to provide expensive generation in order to meet demand. Why not in future pay the same rate for companies to reduce demand? It is also a much more refined tool that could deal with the power supply at a substation rather than Grid level.

Whilst this would mean vast numbers of batteries coming on line which would cost millions if not billions of pounds, this may not be a problem as they would be an attractive green investment due to their defined cycle periods. The batteries could be financed in a number of different ways but most importantly would be off balance sheet. The market may be based around individual sites but it is more likely that aggregators would manage the batteries or fuel cells.

If FM companies with thousands of buildings embraced this technology the size of potential coordinated reduction could be the mythical virtual power station that has often been envisaged.

This solution would have major benefits to the implementation of solar and wind. The limitations of renewables often mean maximum generation is not at peak periods — Summer and Winter evenings spring to mind. However, that becomes a positive as it allows batteries to be recharged in cheaper periods and the power used at expensive peak periods. The Grid could become even more efficient by using excess gas generation in the same way, and expensive reinforcement of the Grid might be avoided. In theory, we’d have the benefits of a distributed power network backed up and using the Grid, which could significantly

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reduce the power needed on the Grid in the first place.

“

There is no technological reason why Dynamic Response should not be implemented today as the technology already exists.

However, to make Dynamic Response a reality, the roadblock of financial viability needs to be overcome as the whole model is based on paying for the power used behind the meter in the unregulated sector of the market. Whilst this already happens to an extent, making this a marketplace which is flexible enough to allow aggregators or sites to bid for specific periods on a daily or hourly basis will need a change in primary legislation.

New technologies often develop different methodologies, so standards will need to be devised.

All these problems can be addressed, and this will There is no technological reason why Dynamic need to be done quickly.

Response should not be implemented today as The EMA is setting up a the technology already exists. However, to make working group which will come up with detailed Dynamic Response a reality, the roadblock of analysis of the different financial viability needs to be overcome as the areas and solutions that will influence changes in legislawhole model is based on paying for the power tion. This is not a simple used behind the meter in the unregulated sector issue, the Grid is quite of the market.” complicated – who knew?

However, with the internet of everything and improved Some exist already, however a broad metering, this could be rolled out spectrum will need to be introduced almost immediately. to stop the problem of incompatible kit or software. The standards need Dynamic Response could be the to be comprehensive enough for Holy Grail in the quest to level the those investing in this new area to Grid and deal with far less availhave confidence that they will not able energy. It might not be long face difficulties working with other before you are taking EMA courses players, but not so restrictive they on Battery and Dynamic Response stifle innovation in a fast moving Management. Alternatively, you marketplace. could always sit in the dark.

THE EMA MAG AZINE • ISSUE MAY 2016

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INDUSTRY FOCUS

Hospitality: an interview with

Bourne Leisure

I

n this regular feature, we will focus on how organisations across different industries approach energy management. In this issue, we are exploring the world of hospitality with Scott Armstrong, Head of Sustainability at Bourne Leisure.

Bourne Leisure is the largest provider of holidays and holiday home ownership in the UK. Our brands are amongst the most recognised within the UK holiday market, and we own and operate leisure assets on 7,000 acres of some of the best leisure real estate in the country.

We operate 38 Haven Caravan Parks, 3 Butlin’s Resorts and 13 Warner Leisure Hotels. Our sites are primarily located on the coastline of Great Britain.

In 2015, we provided holidays to 5.1 million guests and had just over 24,000 holiday home owners.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

In February 2016, we were ranked by The Sunday Times as 4th in their Best Big Companies to Work For, and we have appeared in their top 25 ranking for the past 9 consecutive years.

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Sustainability within Bourne Leisure: Bourne Leisure’s utility costs rank highly within our main Operating Budget. The Energy and Sustainability Team created in 2012 reports directly into the Main Board, which shows the importance with which energy and water efficiency is placed within the business.

The Energy and Sustainability Team is a small central support team headed up by Scott Armstrong and Sam Arje, both of whom are EMA members and

ESOS Lead Assessors. Their role is to support and coordinate the energy and sustainability activities at all 3 operational brands.

Their responsibilities are: - To purchase energy and manage market risk - To manage, report on and budget energy, water and waste effectively.

- To drive down consumption through best practice, energy management, team engagement and investment in sustainable technology.

- To ensure compliance with all energy and environmental legislation.

- To ensure that sustainability is a core part of any new development.

- To bring sustainability to the forefront of the Leadership Teams of all 3 brands.

The Energy and Sustainability team adopts an attitude of continuous improvement in the way in which they work with the operational brands, but key to their success is that guest experience should be improved with any investment that they make. This is measurable in the guest and owner advocacy scores.

What does Energy Management mean to Bourne Leisure?

With the spend on utilities being the third largest annual operating cost to our business, the efficient use of energy and water represents a significant opportunity to boost the profitability of the company. Coupled with this internal driver, our guests, holiday home owners and team members are expecting more environmentally friendly

ways of operating as sustainability, and environmental responsibilities become more commonplace in our lives.

Energy Management in all its forms is therefore an important part of our daily operation across all levels of our team.

From low cost, high value initiatives such as team engagement and a review of operational procedures to high cost capital projects, including new building and venue design.

It was important to achieve Board level involvement early on, and our CEO was happy to support this and sit on our cross brand Sustainability Working Party with representatives from all operational brands.

How does Bourne Leisure deal with Energy Management?

Sustainability audits are key to understanding the operational uses of energy and water within our brands. In the first quarter of each year, the Energy and Sustainability Team undertake audits within each brand at a range of their sites. These audits are then written up and follow the format of identifying the issue and presenting the solutions.

From these audits, the Energy and Sustainability Team identify commonalities which can then be applied to all sites across the brand and even between brands.

Opportunities are then categorised and solutions reviewed and costed using an agreed payback/ROI methodol-

ogy. These are then presented to the Leadership Team within each brand from which investment capital is sought. The roll-out of all approved initiatives is then managed by the central Energy and Sustainability Team between November and March to coincide with our shutdown period in Haven and our off-peak periods in Butlin’s and Warner Leisure Hotels.

external ambient space heaters left on overnight, to give a few examples.

Team engagement and ownership are supported by giving visibility of usage at venue/department level. We have invested in the installation of electric sub-meters across all main venues/ departments at all our sites, and we have the ability to present this data on a day plus one basis in half-hourly format.

This gives great granularity and ownership. Coupled with this, we provide league table reporting on a weekly basis.

Reporting against both budget and last year creates powerful competition between sites.

As well as identifying the capital based initiatives, the energy audits also look at ways in which we can achieve energy savings through team engagement.

Here, we work with the brand culture teams to increase engagement and ownership of utility consumption. This may take the form of a review of venue opening and close down procedures or through highlighting what bad behaviour looks like. Night walks are one of our most effective processes during an audit where photographs are taken highlighting areas of overnight waste – lighting and AV facilities, bar fridges and frozen drinks machines, arcade machines and

Each of our operational brand sites now have an Energy Champion responsible for keeping the focus on energy and water management.

What areas of Bourne Leisure’s everyday business are most challenging in terms of Energy Management?

Portable Loggers The Complete Energy Monitoring Solution from Elcomponent

The key challenge we are faced with is how our guests and holiday home owners manage their energy and water consumption whilst on holiday with us. Here, we focus on passive controls rather than overt directions. After all, our guests are on well-deserved holidays whilst with us and we want them to feel completely relaxed.

The use of controlled ambient set points, LED lighting, PIR technology, RFID technology, light sensors, aerated taps and power showers and the design of guest accommodation providing a well insulated and light, airy ambience are the preferred methods of control.

When designing any new development, we focus on guest comfort, if we place this at the centre of what we do then we make the right decisions in terms of design and practical use. Energy and sustainability are key to this within the Leisure and Hospitality industry, and this again supports why sustainability holds such importance within Bourne Leisure.

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THE EMA MAG AZINE • ISSUE MAY 2016

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BUYER’S GUIDE NICKY MACLAURIN

by

Energy Manager, Vodafone

The Energy Managers’ Guide to

Electricity Procurement The Energy Managers’ Guide was written by Nicky Maclaurin; a Fellow of the Energy Managers Association and an energy management professional who often engages in senior level strategy, specialising in energy procurement, risk management, third party cost analysis and EMR policy.

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THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

e all want to know what the best procurement strategy is for our organisation, and the focus is usually on energy price, but the truth is that unless one is consistently buying daily spot prices over a period of time, a best price is near impossible to achieve. However, energy purchasing is not just about price, but about getting the best fit for the organisation, one that not only delivers value but also aligns with and supports the company’s strategy and risk management requirements.

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A crucial element of the procurement process is to ensure sufficient time to plan, often key to unlocking the maximum potential for energy price and contract terms. Planning will help the company understand what they really want from a supplier as opposed to accepting generic offers.

One should allow time to investigate influencers such as internal company strategy and stakeholder requirements, track commodity price trends, and collate concise information to present to suppliers. Furthermore, supply and consumption data is essential for a supplier to be able to price up an energy contract. Ensuring that one’s supply details are up to date and correct will increase accuracy of pricing and success of the tender.

Attention should also be given to the likely consumption for the contract period. If there are any existing or planned energy efficiency initiatives or long term strategic plans within the organisation that may impact forecast consumption volumes, one should consider the risk in terms of breaching suppliers volume tolerances. One may wish to mitigate this risk by instructing pricing against a reduced contractual period, or

into pass-through contract where individual distribution and transportation charges are not wrapped up within unit rates and can therefore be influenced by onsite activities.

It is important to clearly understand the company’s budget requirements.

If there is a risk framework within the organisation that needs to be adhered to, or a minimum hedge position that must be achieved at any one time on exposed Energy procurement is a bespoke and budget, then this will also drive complex process that can sometimes decisions around length of contract and choices between be seen as confusing or intimidating fixed and flexible energy procureto energy managers.” ment. There is a balance in energy procurement that needs to be achieved between savings and perhaps consider negotiating the budget certainty, and both are often volume tolerance with the supplier difficult to maximise at once. (however one should be aware of the potential cost implications as Once the purchasing strategy and all a supplier effectively accepts this contractual requirements have been additional risk). If an organisation has gathered and compiled into a pricing the ability to impact their consumpinstruction one can then consider tion on a day to day basis, they engaging with potential suppliers. may also wish to consider entering

“

Touched upon previously, information provided to a supplier should undergo a robust validation exercise to ensure pricing is accurate as well to avoid suppliers losing interest from continual corrections.

All supplier products are different, there will be differing levels of transparency of individual costs, as well

as complicated clauses sometimes leading to misinterpretation of the full cost. Where third party charges are passed through, some costs may not be included in pricing at all, or included at different rates. One should ensure that robust systems are in place to analyse prices correctly and expediently, where a like for like comparison can be achieved.

Energy procurement is a bespoke and complex process that can sometimes be seen as confusing or intimidating to energy managers. Whilst a level of understanding is required, one does not need to be an expert in the field to complete a successful energy procurement exercise. A supplier or broker can often provide a high level of support and guidance, but it is up to the energy manager to drive those questions. If one fully utilises the resources they have at hand, the exercise can be a largely stress free

experience.

The decision to use a broker is entirely the organisation’s decision.

There are many benefits to using a broker, as they are experienced in dealing with many different energy users and energy suppliers. However in saying this, it is recognised that there are some less reputable organisations in operation that will not always be working in the interests of the client. One should therefore ensure that sufficient background checks have been performed, references sought, and that a written agreement is in place to commit the broker to standards of practice and performance.

The full version of the Energy Managers Guide to Electricity Procurement is available on the EMA website in the Resources section.

THE EMA MAG AZINE • ISSUE MAY 2016

Many are likely to have experienced a panic that can emerge on a tender day with too little time, and often planning to undertake a few pricing rounds will allow time to correct pricing issues as well as to negotiate with suppliers. It is completely the company’s choice on whether they wish to tender competitively or only deal with one supplier, but approaching multiple suppliers increases competitiveness and exposes an organisation to a number of different options.

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CAREER & TRAINING DR VASSIA PALOUMBI

by

Energy and Environment Manager, Tate

What does it mean to be an Energy Manager at Tate?

E

nergy management is a broad subject and when it comes to a job description can cover a variety of activities. The EMA gathers energy management professionals from across all industries and in this regular section will interview energy management professionals about their role. This month we are shining the spotlight on Dr. Vassia Paloumbi, the Energy and Environment Manager for Tate.

How did you become interested in energy management?

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

At the moment it is being part of the transformation of Tate Modern with a new iconic building, the Switch House, which will open its doors to the public in June this year. I have not been a part of the whole process from building design to handover to operation of a new building of such size and such importance before and it is exciting to see the progress from one day to the next. Overall since I have started at Tate I have also enjoyed understanding a bit more of the ‘art’ world and the effect that maintaining the environmental conditions of temperature and humidity in galleries has on energy usage.

For me it was an organic progression into energy management having started as a recycling and reuse officer for an environmental charity. In What is the most my next role I was looking part of your I am a strong advocate that strategies frustrating into ISO 14001 assessment job? need to be created internally in and audits and started helping clients with other organisations and not as a part of an Bureaucracy and all the wasted issues and helping them paper which goes with it. outsourced or consultancy service. improve their environmenAlthough I have to say I am quite tal performance including make sure that Directors, trustees, and lucky at Tate as this has been energy. Coming from an senior managers buy into what you are much less than in my previous engineering background I posts. trying to achieve and support it.” was comfortable with the technical side of this sector, but could also see the challenges people and organisaCan you describe your typical day? tions face in making sustainable improvements. My formal introduction to energy management was in 2010 Each day in my current role is quite different and I enjoy in my role as Carbon Reduction Manager for the London this variety a lot. Being in energy management tends to Borough of Hammersmith and Fulham. be a reactive role so even if you had plans for the day they can change very easily. Looking after different sites in terms of location and requirements also makes each day What does your role at Tate Gallery entail? very different. Over the last few months I have had days walking around looking at plant rooms, deciding locations One of the reason I enjoy my role at Tate is because every for the recycling bins, working with catering teams to day is different. Energy procurement, management and effectively manage waste, monitoring environmental reduction projects are a part of it, but I am also involved conditions and lighting levels in galleries and lots more with waste and resource efficiency and reduction, that comes with opening a new public building. upcycling projects and posting things on Freecycle, staff awareness projects, communication with internal and external stakeholders and sometimes even bee keeping What drives you? and other biodiversity projects. I still learn a lot on the job and this is what I enjoy the most.

I am in a field that I love. I feel I can make my own contribution and make the world just a little bit better. That is

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What is the most exciting part of your job?

Tate Modern Extension. View from the South at dusk. © Hayes Davidson and Herzog & de Meuron

What qualities should a good energy manager possess?

Apart from some technical or scientific background, I have found that great communications skills and a strong will are vital to the role. Be open to new ideas and collaborative. It always helps a lot if you yourself are a person who deeply cares for the planet and your community and want to make a change.

Which energy efficient innovation can revolutionise the global economy?

My bet will need to be on PEOPLE. Any innovation will not succeed without skilled people who want to innovate, challenge and change things. Collaboration, open and clear communications and working together can revolutionise.

What advice would you give to someone looking to craft an energy management strategy?

I am a strong advocate that strategies need to be created internally in organisations and not as a part of an outsourced or consultancy service. The advice I would give someone is to firstly try and understand the organisation you are working in, its core values and mission. Talk to as many people as you can from the different teams, find out what drives them and what challenges them.

Be open to suggestions and understand that energy management is not everyone’s priority or concern. Above all make sure that Directors, trustees, and senior managers buy into what you are trying to achieve and support it.

Try to make relevant people in the organisation responsible and accountable for the different elements in the strategy and how it will be delivered. Find out what others in the field are doing. A lot of people in sustainability are happy to share their work and prepare you for the challenges and successes ahead. Collaboration both within and outside the organisation is key.

THE EMA MAG AZINE • ISSUE MAY 2016

enough to drive me but like everyone I have days when I get frustrated and run out of steam, although they don’t last long as I think of myself as very lucky doing something which I really enjoy… most of the time.

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CAREER & TRAINING

2016 entries are now opened and can be submitted on the EMA website until 30 October 2016.

Winners will be announced at a ceremony on Wednesday 16 November 2016 at EMEX in London.

The Energy Managers Association is pleased to announce that entries for the annual EMA Energy Management Awards 2016 are open, marking the start of a search for champions in the following categories:

• • • •

• • • • •

Last year, the EMA Private Sector Energy Management Awards highlighted achievements of individuals and organisations across private sector only, this year we are opening the entries to public sector organisations as well.

Energy Manager Junior Energy Management Professional Energy Management Team Energy Management Consultancy Service Energy Reduction Project through Organisational Behaviour Change • The Most Inspiring Energy Reduction Project

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

Energy Manager

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D

Best Implemented ESOS Project Energy Management Training Programme Energy Reduction Product EMA Member

THE 2015 EMA AWARDS WINNERS WERE:

Junior Energy Management Professional

EMA Member

DAVE HORTON

TATIANA IONA

KIT OUNG

Energy Specialist, nPower

Energy Engineer, Engie

Energy Efficien:ology

ave Horton has spent the best part of a year creating training courses in Energy Management. After over 20 years in the industry, and with a huge network of experts within npower to call on, this work is now coming to fruition with the launch of the nBS EMQ (nBSEMQ.com). These courses will help to formalise the career of many current and future Energy Managers.

T

atiana is an Electrical Engineer, currently gaining experience in Project Management, Utilities, FM, Operations and Maintenance and Engineering Design within the industrial and healthcare sectors. Tatiana conducted multiple ESOS compliant audits in the chemical, food and drink and automotive industries and has experience in the delivery of Energy Performance Contracts.

K

it Oung was instrumental in 2014-2015, in designing the UK’s ESOS Lead Assessor competency specification, provided input into ESOS and trained approximately 20% of ESOS Lead Assessors. He writes frequently, including 6 energy management books, and is a world-recognised thought leader in energy leadership, energy management, policy design and training.

THE event for everyone responsible for reducing their organisation’s energy consumption.

EMEX is the energy management show that connects all energy users with hundreds of leading suppliers, policy makers, engineers and experts.

This marketplace includes a free to attend conference programme that will help you control energy costs, gain industry insights, source innovations, share knowledge and stay up to date with the latest and upcoming legislative changes.

Their focus will be: Energy Management as a Profession, Energy Use in the Built Environment, Meeting Energy Demand, Water and Energy Supply, Technology and Innovation.

On behalf of my fellow board members of the Energy Managers Association, I’d like to invite you to be part of EMEX 2016.

It takes 2 minutes to register for FREE at www.emexlondon.com

The Energy Management Exhibition EXCEL, LONDON n 16-17TH NOVEMBER 2016

REGISTER FOR FREE TO GAIN FULL ACCESS TO 100+ LEADING SUPPLIERS 80+ SEMINARS / TRAINING SESSIONS

emexlondon.com

THE EMA MAG AZINE • ISSUE MAY 2016

As well as a great line up of speakers, exhibitors, partners and supporters fellow attendees include:

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Energy Management Team

MANCHESTER AIRPORT’S UTILITIES TEAM

M

anchester Airport’s Utilities & Energy Team delivered electrical energy savings of 30% from a baseline set in 2006 via energy efficiency schemes and smart building integration. This equates to a total saving of more than 200GWh. A small team of six people, they constantly seek best practice and question the norm by asking “Why not?”

Highly Commended: Bourne Leisure and Utilyx

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

Energy Management Consultancy Service

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TURNER & TOWNSEND

T

he winner of this category impressed judges with the work they undertook to manage the RE:FIT programme, one of the cornerstones of the Greater London Authority’s sustainability activity. The consultancy was praised for their professionalism, advice and guidance. All of this enabled a great number of public sector organisations to deliver successful energy retrofit projects.

Best Practice ESOS Compliance Project

Energy Reduction Project through Organisational Behaviour Change

CEMEX

C

EMEX is an intensive energy user and minimising usage has been a high priority over many years. Despite this, they approached ESOS as a means to build on existing energy efficiencies and cost savings. Their detailed audit approach uncovered a further 600 potential opportunities, many of which have already been implemented saving 10GWh annually.

Highly Commended: Bourne Leisure

AMBASSADOR THEATRE GROUP

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roject Blackout has been identified as a project that is transferable to any sector of industry. Its main attractions are that it comes at little or no cost to the employer, encourages full engagement with staff and produces almost instant environmental changes.

Highly commended: Marks & Spencer and Sainsbury’s Supermarkets Sponsored by the Department of Energy and Climate Change

Most Inspiring Energy Reduction Project

Energy Reduction Product

SGN

FEILO SYLVANIA

GN’s Turbo Expander is truly a sustainable energy project with the potential to be repeated all over the UK. The ground-breaking project developed by the gas distribution company harvests green electricity from the normal operation of the gas network. It demonstrates SGN’s commitment to innovation and showcases it’s vision to lead the way in energy delivery.

he partnership between leading global manufacturer Feilo Sylvania and Organic Response is pushing the boundaries of lighting control technology.

Feilo Sylvania luminaires automatically detect neighbouring fixtures, auto-commissioning themselves into an advanced control system.

The solution is 20-30% cheaper than other control systems as there is no need for control hardware or cables to be installed.

S

T

CAREER & TRAINING

Role Models Wanted

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ecently, at both EMEX and one of London’s top universities, a careers panel of respected and experienced energy managers delivered engaging speeches about their academic backgrounds and progression through their energy management careers. What was unusual and fascinating was that it featured all-female speakers. Just ten years ago we would have struggled to put a panel of five leading female energy managers together.

Undoubtedly, the presentations would have been as interesting and the presenters as outspoken if they were men, and there certainly were some in the audience. However, the real purpose of the talks was to show how energy management can be an exciting and satisfying career option. Of course, putting this many professionals together in a room to talk about their careers had an excellent effect: if nothing else, it showed the next generation of up-and coming students that they already have a set of role models.

With this in mind, the EMA would like to create a wellinformed and connected energy management community where newcomers can learn from respected veterans.

Experienced, credible and trustworthy mentors can serve as a valuable hub for professional ideas, and provide sound advice on difficult practices. Knowledge sharing and exchange is at the heart of most EMA initiatives and together with our membership we would like to help those new to the profession through the often complex areas of energy management. Ideally we can also help them to expand their career options and there is a need for more role models in energy management who are happy to dedicate an odd hour here or there to share their expertise.

The benefits of energy management mentoring go both ways and if you feel that you would benefit from spending time with a mentor, or mentoring others, please get in touch with Jana at the EMA on 0203 176 2834 or by email at jana.skodlova@theema.org.uk

THE EMA MAG AZINE • ISSUE MAY 2016

Empowering Women in Energy Management and Environment Panel at EMEX 2015 with Suki Gililland, Head of Energy - QinetiQ; Nicola Stopps, Managing Director Simply Sustainable Consulting; Penelope Guarnay, Group Energy Manager - Marks and Spencer; Wendi Wheeler MEI, Energy & Carbon Strategy Manager - Network Rail

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CAREER & TRAINING RACHEL WARD

by

Energy and Sustainability Manager, London Metropolitan University

Rachel Ward Reflects on her Career Path in Energy Management The Energy Managers Association has taken on a challenge to raise the sector’s profile by sharing its members’ – leading energy managers - insights into their career progress and achievements.

What made you to choose energy management as a career?

I continued my interest in sustainability by undertaking a PgC in Sustainable Waste Management for Business during my annual leave and volunteering my free time to undertake waste projects and assist in 14001 accreditation.

After this experience I was able to get a job as a trainee energy manager at a small energy consultancy. My first job was to work on an EU funded project called Business Energy Efficiency Services offering free audits to business and I continued to undertake audits for mainly manufacturing organisations during my consultancy career.

I always had an interest in environmental issues from a very young age and set up a recycling scheme when I was To build up my knowledge of energy management as part at Primary school. My interest grew from there. I enjoyed of my trainee scheme, I approached a couple of experiscience and computing at High school and went on to enced energy managers to help mentor me. They took study Chemical Engineering. After this I undertook a me on site visits, talked me MSc in Clean Technology. through audits and helped The course was a mixture of To build up my knowledge of energy me write technical reports. teaching and a 3 month work management as part of my trainee scheme, I This experience was invaluplacement. The work placeapproached a couple of experienced energy able. This helped me realise ment was a steep learning the incredible range of skills curve – I realised I wouldn’t managers to help mentor me. ” you need to be an energy be able to change the world manager: project management, numerical skills, commuquickly but did learn a lot of skills I needed to make a nication, influencing, knowledge and of course enthusichange. I absolutely loved this course and knew this was asm. the career path I wanted to follow.

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How did you progress through the profession to your current role?

Unfortunately after the MSc work placement, I struggled to get work as there weren’t many entry level positions available at that time. I volunteered with the environmental charity, Groundwork through helping other companies to reduce their resource use and also implementing ISO 14001 within the office.

I then went on to work in the pharmaceutical industry for AstraZeneca and Johnson & Johnson in regulatory affairs.

I progressed from Trainee Energy Manager to Principal Consultant in consultancy and decided to work in-house as an energy manager and was fortunate enough to be employed by London Metropolitan University to undertake a wide range of energy projects.

What is your greatest contribution to the energy management sector?

At London Metropolitan University, as their first energy manager, I was able to make a big difference to their energy consumption. I’m really proud of the work I’ve

done and we’ve been named as the number 1 University for carbon reduction in England and Wales through reducing our carbon emissions by 47%. This exceeded our 2014 target by 10%. As a result of this work we have won several awards including a Green Apple, Public Sector Sustainability Award and Highly Commended in the Green Gown Awards.

single glazed 1960’s building to double glazed. I worked with 4th year architecture students who created a charette of designs as part of their course and the designs from this were used in the final window design. I also worked with students from MSc Low Energy Architecture to undertake monitoring of the building before and after the installation.

What is the most exciting part of your job?

What are your long term goals?

I really enjoy being able to see the projects I have implemented. I’ve recently completed the installation of 221 solar panels which is the University’s first renewable energy. In recent days we’ve generated enough electricity to make 11,500 cups of tea.

We have some exciting plans ahead at London Met. We are undertaking a project called “One Campus, One Community” to relocate our 3 campuses to one. This gives me a great opportunity to include technologies such as CHP, rainwater harvesting, green roofs, energy zoning etc in the design.

My job works closely with students which I really enjoy.

Through the projects I undertake, I try to involve students wherever possible to help them gain work experience.

Recently we completed a project called Transforming Energy Efficiency at Central House (TEECH) to upgrade a

I’m also very keen to try and develop a sustainability course at the University. I think there are huge opportunities in the industry and hope that students would love the career as much as I have.

ENERGY RECRUITMENT SPECIALISTS Energy Management - Low Carbon Design - Building Services - Facilities Management

01202 888 986 - info@allen-york.com - www.allen-york.com

THE EMA MAG AZINE • ISSUE MAY 2016

BUILDING & ENERGY SERVICES

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CAREER & TRAINING

Could your Job Become a Career

in Energy Management?

It is customary to interchange the words ‘job’ and ‘career’. Whilst both terms consist of working and receiving a wage, a career goes far beyond working hours and a payslip. A career is hard work, commitment, passion, and above all an opportunity for personal and professional development.

I

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

n the past, professional development opportunities in energy management have been few and not clearly specified. Often, the energy manager’s job description has identified the need for technical skills, and also knowledge of energy systems and procurement as the most essential knowledge requirements. But with the increasing need for energy management, a defined and broader skill set is required from energy managers. The range of an energy manager’s skills expands beyond procurement and technical knowledge, and nowadays also encompasses strategy, communication and finance as just a few of the must-have skills.

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The EMA reflects on the constantly evolving role of energy managers and, with the aim of assisting in their professional development, we propose a range of courses that we believe focus on every aspect of the energy managers’ role. Drawing on the expertise of practising professionals, our comprehensive Energy Management in Practice training programme has been developed to deliver learning outcomes and skills that energy managers need for a successful career, as well as to deliver the knowledge and understanding

required for progression in an already established energy management career.

This flexible modular programme allows you to focus on a variety of subjects, including technical energy management, energy assessment and measurement and verification, behavioural change and motivation, regulatory and legal compliance, carbon management, energy management strategy, waste management, procurement, transport, and water and information technology, to fulfil your upskilling aims, and to achieve EMA Recognised Energy Manager status.

To ensure that the courses provide a great platform for people new and old within the energy management field to develop their knowledge, skills and understanding of the sector, the majority of our courses are delivered by top energy management practitioners. Delivered through a balance of interactive lectures, case studies and discussions, the courses offer a key hands-on understanding of today’s business environment.

So if you are seeking the opportunity for advancement in your job, consider enhancing your knowledge and skills in energy management

with the available EMA courses, or alternatively take advantage of our career advice through the Gap Analysis Interview.

NEXT 2016 COURSES IN LONDON

13 May - Knowledge & Skills Gap Analysis Interview 1-3 June - Fundamentals of Energy Management 7 June - Energy Management Strategy 28 June - Understanding and Delivering Behavioural Change Programme 13 Sept. - Energy Assessments, Measurements and Verification For more information about the Energy Management in Practice training and Gap Analysis Interview, please contact the EMA on 0203 176 2834 or email Jana at jana.skodlova@theema.org.uk

Awaken your Energy Awareness with a Training Course

Individuals and organisations are already looking at ways to use energy without it costing the earth, and for many, energy efficiency is no longer just an option but a strategic personal or business necessity. If we broaden our horizons to extend beyond technology and energy management systems as the main energy efficiency solutions, the next obvious component of better energy resource management would surely be individuals’ behaviour and their energy awareness. Elaborating and explaining on energy bills may make a difference, but helping people to realise the level of impact that each individual’s energy consumption has on the environment could result in significant cost-saving behaviour.

The new energy efficiency trend encourages behaviour change enhanced by energy awareness training. The EMA’s approach is determined by our belief that people are pivotal to the reduction of energy use and, consequently, its cost. Staff training can significantly contribute

to reducing unnecessary energy use within an organisation, and for this reason their energy awareness training should not be considered optional but compulsory, and where possible undertaken during one’s induction period.

And it works! Our practical behavioural change training has already delivered substantial energy cost reduction across a wide range of organisations such as Wickes that saved over £500K on their energy bill in 2014 across their 230 store estate after training 146 of their staff.

With this in mind, the EMA engages with training providers who offer a range of online or taught courses at two levels, LEC 1 - Energy Awareness and LEC 2 – Reduction of Energy Consumption. The available training has been designed for individuals, or as an employer led scope for entire organisations, interested in the reduction of energy consumption, management of energy costs, improvement of energy performance and boost of their company’s profile. In the online version, invaluable skills’ development can be achieved in under one hour and deliver an educational, interactive and effective experience.

Organisations that train a substantial number of employees will be eligible for the Low Energy Company (LEC) award as means of recognition of their commitment to energy reduction, combatting climate change and being a responsible employer.

THE EMA MAG AZINE • ISSUE MAY 2016

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or many years, energy in all forms has been relatively inexpensive and taken as a given without any concern about the cost or amount consumed. With the advent of the Government’s push to assure the security of energy supplies, to manage depleting energy capacity and reduce CO2, it is expected that energy consumption will henceforth have to be treated with caution and responsibility.

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CASE STUDY

Grundfos Pumps admitted to the new Alder Hey in the Park Overview: Caring for young people and their families is the mammoth task that Alder Hey has been involved with since 1914. 2015 saw the dawn of a new era when the new £288m hospital that will provide medical support to 270,000 children each year opened last October. With a design inspired by children, this is a hospital built entirely in a park and that has been designed to be a new concept in terms of treating and caring for children. This total approach is not just a first for the UK, but there is currently nothing like it anywhere else in Europe.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

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With a floor area of 51,000 sq/m. and a requirement to make the building as energy efficient as possible, Grundfos Pumps worked closely with both the consultant and contractor to attain the best outcome that would deliver a full service pump solution. This included delivering the HVAC, water boosting and pressurisation needs for this important project.

Placing this amount of emphasis on pumps is not surprising as: • today pumps account for no less than 10% of the world’s electricity consumption • two thirds of all pumps use up to 60% too much energy

From an engineering perspective, a major challenge at Alder Hey was meeting the Trust’s stringent sustainability targets in four key areas: energy, carbon, onsite renewables and on-site electricity generation.”

In fact if every business switched to a high efficiency pump system there could be global savings of 4% of the total electricity consumption which is comparable to the electricity consumption of 1 billion people.

Challenges & Actions: Alder Hey children’s hospital is the busiest in Europe and as a pioneer in the treatment of illnesses, they have spearheaded many ground-breaking medical 1sts that has put them at the forefront of medical innovation. This

latest chapter sees this innovative spirit continuing through their ambitious demands, not just medical but also in terms of the building envelope and the overall environmental ambitions.

Alder Hey have a national and international reputation for medical excellence and they have now brought this innovative attitude to all aspects of the new development including the pump solution.

By their very nature, hospitals are operationally complex sites that must be ready to meet demand 24/7, 52 weeks per year. Selecting the correct pumps to support every aspect in these circumstances is therefore particularly vital. Grundfos worked closely with the consultant and contractors to ensure that the most efficient options were selected and this saw us supply the full pump solution that included: 70+ speedcontrolled pumps and booster sets as well as pressurisation units and

The system is supported by BACnet technology - an international data communication technology used in BMS worldwide.

The project team selected various pumps in particular energy efficient pumps from the same single-stage centrifugal pump family and similarly with the booster sets that will ensure the water transfer and pressure boosting demands. In this way, commissioning, maintenance and spare parts can achieve the greatest economies of scale.

Lessons and Results: The new Alder Hey in the Park officially opened in October 2015 and has been very well received by the media; the staff but more impor-

tantly the children and their families.

Although this is a new build, Grundfos have been involved with Alder Hey for many years and had supplied a range of pumps to the previous hospital complex as well as the Ronald McDonald House that acts as a home-from-home on the site for families of ill children who can stay here during times of greatest need.

This new hospital has already been officially recognised as one of the most environmentally friendly hospitals in the world. From an engineering perspective, a major challenge at Alder Hey was meeting the Trust’s stringent sustainability targets in four key areas: energy, carbon, onsite renewables and on-site electricity generation. All were based on measuring utility supplies at the site boundary, a more onerous requirement than the standard HTM Encode 2 approach used for hospitals so energy efficiency played a key role in every aspect of this project. The

project also targeted a design stage BREEAM Excellent rating and is in the running for a number of other accolades.

In terms of future proofing this build, the project team were careful to select various members from particular energy efficient pumps from the same Grundfos single-stage centrifugal pump family. As was also the case with the booster sets that will ensure the water transfer and pressure boosting demands. In this way, energy demand, commissioning, maintenance and spare parts can collectively achieve the greatest economies of scale as well as making both planned and unplanned pump service demands more efficient.

More information: For more information on the Grundfos range of pumps and pump solutions visit www.grundfos.co.uk

THE EMA MAG AZINE • ISSUE MAY 2016

ancillary equipment. Selecting these energy efficient options will save up to 50% on pump energy costs.

31

TECHNOLOGY

Lighting Controls: Myth busters — Q & A Lighting Control is not worth it?

This Myth is defiantly worth busting.

You can save between 34% and 70% on your Lighting Energy consumption by using Lighting Control – the exact amount will depend upon the existing controls in place.

Switching Lighting shortens the lifetime of the fixture?

With quality Lighting Control on LED fixtures you are actual dimming the fixture, not necessarily switching it off. This not only saves money (see question above) but allows the fixture to last longer therefore saving money on the maintenance/replacement of fixtures. Switching and/or dimming has no detrimental effect on LED.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

We have light switches in our building – are these not sufficient?

Standard switched control require human intervention and whilst this may happen sometimes it can’t be relied upon. This can be demonstrated by numerous office estates burning lighting throughout the night.

32

Will my workforce experience areas of darkness?

A typical PIR based system uses a sensor per eight fixtures – so, if that space has typically ten people in it, this equates to one sensor per ten people. It is this sparsity that can cause ‘false offs’ when a user is sitting at a desk and the lights go out. Obviously this is not good for occupancy comfort. A granular system typically has a sensor per fixture so this equates to nearly one sensor per person giving a much high resolution and therefore detecting much smaller movement. This approach can also make reconfiguration of spaces much easier as there is no need to worry about where the PIR sensors are located

and what they can see; if there is one in each fixture, regardless of configuration, most human movement will be detected.

Daylight Dimming does not work in the UK? Whilst there is not as much sunshine in the UK as other countries, there is usually sufficient ambient light to allow daylight dimming to operate. A controls solution that has ‘fine grain’ control with distributed intelligence (as opposed to a Central Control function) and sensors in each fixture will allow for accurate and effective daylight dimming. As with all forms of dimming the User should not be aware of this, ensuring maximum user comfort but still achieving energy savings.

Is a control system responsive enough?

It can be. A localised, distributed intelligence solution will allow the individual luminaires to react quickly and efficiently to any changes in the surroundings, from movement to dimming, by controlling the luminaires within the immediate vicinity of the environmental condition.

Will my new lighting be compatible with our controls system?

Most light sources can be switched and dimmed, with the exception of the majority of discharge light sources. Care should be taken to understand which dimming system is in place to ensure that the correct driver is installed within the product. Most products should be available enabled with DALI (Digital Addressable Lighting Interface) drivers.

As the leading industry standard, luminaires equipped with such products should be compatible with

many controls systems and building management systems (BMS). Again, this should be discussed with your provider, and guarantees secured to avoid any on costs. However, other dimming protocols are available, such as 1-10V, Phase dimming and DSI. It is important to ensure that an audit is undertaken to ensure that this information is gathered, especially when undertaking a refurbishment project, to ensure that control compatibility is considered and implemented.

Installation and Set-up of Lighting Control is expensive?

Whilst the above statement can be true of some Controls Systems there are systems that do not need to add anything to the installation costs and can be set-up by inexperienced end users. These controls solutions are ones that are built in to the fixtures at point of manufacture and so also address the daylight dimming and areas of darkness questions (above).

Do I switch, or should I dim?

If a lighting control system is able to dim as well as switch then increased energy savings can be realised.

Dimming gives occupants more choice over the levels of lighting they experience. It can also be less intrusive to adjust lighting levels than to suddenly turn luminaires on and off. If the lighting controls can be implemented alongside fully dimmable lighting then occupants will be happier, the savings will be greater and the lighting design will be maintained. Daylight linked dimming, often known as daylight harvesting, offers tremendous savings by recuing the light output of the lighting as greater levels of daylight are detected.

Organic Response Sensor Node

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THE EMA MAG AZINE • ISSUE MAY 2016

LUMINAIRES WITH INTELLIGENT WIRELESS CONTROL SYSTEM

33

www.concord-lighting.com

Tel: 0800 440 2478

TECHNOLOGY STUART KIRK

by

Owner, Enerlyse Ltd

Practical guidance and top tips for a successful

LED Lighting Project

The installation of LED lighting is a project often chosen and deployed by the Energy Manager due to the energy savings it can achieve. However, lighting has a direct impact on both the occupants and maintenance of any building, so the decision should not be made in isolation. Many stakeholders are required to determine the scope of the lighting project, selection of fittings and the phasing of the installation.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

LED installations are often viewed favourably by Energy Managers and Finance Managers compared to say a renewable energy scheme, due to their short-term payback on investment (typically under 3 years). However, LED fittings do have a far shorter life than some other energy projects and you need to consider the replacement costs on a 5 yearly cycle. Remember you will only get this significant energy saving once.

34

Where to start

Available Technology

Other Considerations

Choosing a Solutions Provider

Choosing the right equipment

It’s not just Lighting

Solutions Provider This is a partner that can provide a Turnkey Lighting Solution that could (depending upon your specific needs) include financing, installation and lighting controls.

Fluorescent Do not ignore fluorescent technology; many lamps, such as T5s, can offer significant energy saving benefits without the capital outlay often associated with LED.

Building Integration It is not just lighting that can be achieved through an upgrade.

Depending upon solutions selected additional building functions can be incorporated (e.g. HVAC, security, space utilisation etc.).

LED LED lamps and luminaires have developed significantly over recent years and now offer a competitive return on investment and significant maintenance savings.

Productivity / Wellbeing The correct lighting can have significant benefits on the productivity of those within a building.

Audit A reputable solutions provider will work with you in order to complete an audit and establish the area for improvement.

Total Cost of Ownership A calculation of the proposed lighting and controls scheme factoring in regulatory compliance.

Controls Controls should be a core element of your energy savings measures.

Data Advanced control systems can leverage data from sensors to reduce further costs such as maintenance.

Integrated Energy & Maintenance

Internet of Things (IoT)

Whilst the energy savings attributed to install-

The ‘Internet of Things’ is certainly becoming a

ing LED lighting are often the deciding factor in

vogue term within the industry. This may sound

deploying such a project, there are significant

odd, but when specifying an LED fitting, do you

gains to the ongoing maintenance regimes associ-

simply want it to provide light?

ated with either reactive re-lamping or planned lighting maintenance contracts. It is important to

So how have simple sources of illumination

understand the warranty you are buying with the

evolved into such an IoT success story?

product.

While the LED revolution may be over, the story A benchmark warranty for an LED fitting is now

of intelligent lighting is just beginning. It all starts

five years for the product, but the commitment

with the LEDs themselves. As low-voltage semicon-

to provide labour to replace the fitting from the

ductor devices, they have always had a natural

supplier may be limited to just 12 months. The

affinity for digital control. Unlike the inherently

maintenance teams need to be aware of this and

analog and high-voltage light sources of the past,

also if multiple suppliers are being used, how the

LEDs and micro controllers play well together.

warranty programme will be managed.

Today’s technology allows LED fittings to not just

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THE EMA MAG AZINE • ISSUE MAY 2016

MAKING LIFE LIGHTER

35

Established 1968

provide lighting control but they can now be used

ment but it may be more beneficial to the wider

as a communication tool for people within the

business.

building and they can collect data on building usage patterns and failure rates.

Product evaluation Today’s lighting can provide significant data for property owners if required. The ubiquity of light-

The LED market is now vast, with a wide range of

ing across our private and public spaces makes it

applications. There are solutions that range from

the perfect vehicle to bring intelligence into the

lamp replacements to connected and data collect-

built environment.

ing intelligent fittings. When trying to compare products it is important to consider the Lumen

Although the bundle of components required to

output of the fitting when evaluating cost as these

make a light fixture capable of sensing its environ-

can vary significantly. Also the colour tempera-

ment, acting on that information and sharing

ture and the level of diffused light can reduce this

it with others has dropped in price — even

output substantially.

more precipitously than have the LED devices themselves — it increases the cost and therefore

A crucial factor in LED lighting is the ability of the

impacts on the energy saving return on invest-

fitting to disperse heat away from the LED chips.

You need to carefully evaluate the ability of the fitting to disperse this heat from within its intended location. Bear in mind that one manufacturer may not have the solution to all applications within a particular property. It may need the use of several different manufacturer’s products to obtain the optimum solution for a building.

Finally, where is the product coming from?

The majority of LED fittings are now manufactured in the Far East and lead times for supply

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

and delivery can be substantial - typically, between 8 and 13 weeks. This needs to be considered for integration within construction or refurbishment projects and also brings into question how the warranty replacement will actually work.

Find out more

www.compact-lighting.co.uk Compact Lighting Ltd. designs and manufactures a complete range of products to create premium lighting solutions for retail, 36 hospitality and display environments.

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Top Tips Summed Up:

Evaluate the warranty information.

Benchmark warranties are typically 5 years parts but labour costs may vary.

The cost of the fitting should be compared in conjunction with the lumens per watt output and not just alternative supplier prices.

4 5

Be sure on the lead time for procurement and shipping along with timescale for replacement fittings under warranty.

Are you just wanting light?

Growing technology of intelligent lighting means light fittings can send and receive data as well as provide control.

Stuart Kirk is an experienced energy manager, owner of Enerlyse Ltd and a board member of the Energy Managers Association. He is a qualified ESOS Lead assessor and RICS chartered surveyor.

Stuart also undertakes training for the Energy Managers Association and RICS.

THE EMA MAG AZINE • ISSUE MAY 2016

1 2 3

You only get the drop in energy consumption once. Consider the cost of repeat installations over 10 to 15 years. Consider the total net savings over this period.

37

POLITICS

Parliamentary Debates

over Energy

The EMA magazine will bring you regular updates on the questions and debates raised about energy in Parliament.

THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

Energy is vital for the UK so why does it seem that no politicians really care?

38

There are surprisingly few debates about energy in Parliament, with energy efficiency, especially in industry, being largely ignored. The price of energy is a hot political topic but debate is focused on cost not use. There seems to be an assumption that cheap energy and energy security are here to stay and are a product of a political whim. This will almost certainly change as prices start to spike over the next few years, but how will this affect policy makers?

At present there are remarkably few politicians who have focused on energy or have any real understanding of energy issues. The reason is simple, energy has been cheap and secure for a long period with power cuts a very rare event. In this climate, energy has not been a political battleground and politicians have focused on more contentious issues. There is

now a growing understanding that there is a supply crunch on the way.

This was the reason why Electricity Market Reform (EMR) was introduced with support from all sides, the problem is that this is still a financial solution to a supply problem.

There is a need for new generating capacity, most of which certainly will be gas, however the first Contract For Difference Auction did not give adequate financial incentive to build gas plant. The next auction will favour gas plant but how quickly can it be brought on-line and whether it will be easy to finance is another question.

Single issue solutions such as nuclear plant, fracking, wind, climate change and solar have all had their moments in the sun, but focusing on a silver bullet mean that the bigger picture has been neglected. The problem has been created by the policies of the last thirty years by all governments. The political rational is as follows, a power plant will have a life span from start to decommissioning of fifty years. Construction will mean an enormous financial commitment from a

The government then has to explain to the press, who are working on a 24 hour news cycle why bills will be higher. The press then has to explain to the public who are worried about this month’s bills rather than security of supply in the future.

This means that ignoring the issue is the simplest course of action. No decision has been really made and the generating assets have been kept going as long as possible. This has been a great policy but at some point, which many believe will be in the 2016/17 winter, demand will exceed supply.

Whoever is in power when the first power cut hits will be holding the proverbial pass-the-parcel prize. Voters are not going to be happy so what is the solution?

The short term fix will be to raise the cost of energy to start to make consumers use less. Politically this will not be easy as the argument has always been about cost; shifting to using less as a way of cutting the bill will be unpopular. A price rise will also send a sizeable chunk of households into fuel poverty which is defined as ten per cent of disposable income spent on energy bills.

There is no quick fix through building generating capacity new gas power plant would be the quickest to build but will still take over five years to be connected onto the grid; solar can be built quickly but not as baseload; wind can be built but the subsidy regime has been slashed due to Conservative policies and it would be a brave financier who went quickly back into this marketplace. This leaves nuclear but all the money is being spent on Hinkley Point C, which unfortunately is really only expected to come on line in the late 2020’s or contractually by 2033.

The only real solution is using less, so energy efficiency will become a political issue, and suddenly politicians who have largely ignored this subject will need to become experts. The EMA will be working in a number of areas, through briefing MP’s and Peers for debates, getting questions asked and working with the committee structure to promote energy management and the need for energy management.

We will be working through a number of all party groups and will have a page dedicated to the politics of energy as a regular feature of the magazine.

THE EMA MAG AZINE • ISSUE MAY 2016

government that has a maximum life of five years.

39

POLITICS Rupert Redesdale

by

Chief Executive, The Energy Managers Association

The Spring Budget: Well Done George

T THE EMA MAGAZINE • ISSUE MAY–JUNE 2016

he simplification of energy taxes has now had a price tag attached to it; by 2021 it will add £460 million to the cost of the Climate Change Levy (CCL). This figure will offset the loss to the public purse of the closure of the Climate Reduction Commitment (CRC).

The cost to industry will only be introduced in the tax year 2019/20 when an extra £435 million will be collected with a further £35 million in 2020/21.

40

The change to CCL as a collection method for the tax will be accompanied by the tax being charged at the same rate by 2025 between electricity and gas. These projected hikes are meant to be cost neutral in line with RPI, but that said, Treasury could of course raise the rates in any future budget.

Other key elements of the reforms include retaining existing eligibility criteria for Climate Change Agreement (CCA) schemes until at least 2023. The Department of Energy and Climate Change will carry out a target review to include a

review of the Buy-Out price for periods 3 and 4 in 2016.

Increases to the CCL discount available to energy intensive businesses in the CCA scheme who meet agreed energy efficiency or carbon reduction targets will compensate for the CCL rate increases from 2019 to 2020, meaning that businesses in the CCA scheme will only be subject to an increase to their CCL liability broadly in line with RPI. There are two main benefits of the new tax regime to Energy Managers. The reduction in paperwork as a result of the merging of CRC and Green-House Gas (GHG) reporting and the proposal that the new report will need to go in front of a company’s directors and probably the main board. Boards have an inherent desire to lower their tax bill; and in this case the only way to do this is to use less.

These measures will really take effect in 2018, but could have a major impact on the case for energy reduction measures being supported by the Board. Tax really could be the stick that makes companies more efficient and greener; well done George.

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This marketplace includes a free to attend conference programme that will help you control energy costs, gain industry insights, source innovations, share knowledge and stay up to date with the latest and upcoming legislative changes.

Their focus will be: Energy Management as a Profession, Energy Use in the Built Environment, Meeting Energy Demand, Water and Energy Supply, Technology and Innovation.

On behalf of my fellow board members of the Energy Managers Association, I’d like to invite you to be part of EMEX 2016.

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THE EMA MAG AZINE • ISSUE MAY 2016

As well as a great line up of speakers, exhibitors, partners and supporters fellow attendees include:

41

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