The EMA Magazine I May-June 2017 Issue

THE EMA MAGAZINE

www.theema.org.uk | ISSUE MAY–JUNE 2017

TO BE OR NOT TO BE, IN-HOUSE OR CONSULTANT

that is the question

ENERGY FROM WASTE AND RECYCLING

at Cory Riverside Energy

INDUSTRIAL ENERGY STRATEGY Part 2

BREXATOM

Goodbye, and thanks for all the Fission

2017 EMA Energy Management Awards

Energy Manager: in-house vs consultant?

Solar PV user’s guide

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contents

EMA MAGAZINE

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18

FOREWORD

By Paul Eggleton

FEATURES

6

To be or not to be, in-house or consultant, that is the Question

By Vassia Paloumbi, Luke Richardson, Katie Greenhalgh

12

The cost of water in the new marketplace

By The Energy Managers Association

CAREER & TRAINING

14

16

“Apparently, I’m an energy manager!”

By Roger Low

DO YOU HAVE THE SKILLS NEEDED?

By The Energy Managers Association

TECHNOLOGY ENERGY MANAGERS NEED TO 28 WHY UNDERSTAND THE BENEFITS OF ANAEROBIC DIGESTION

By The Energy Managers Association

Sutton School: 30 Temple Case Study

24

By Terence Lewis

USER’S GUIDE

32 from Waste and 18 Energy Recycling Solar PV WASTEFUL THINKING AT NORTHERN 36 20 POWERGRID Networks in a Changing 23 TheEnergyGasSystem BREXATOM: Goodbye, and Thanks 24 for all the Fission the Future of Smart 26 Shaping Energy Management Policy

By Ethan O’Brien

Industrial Strategy needs an active energy management culture – Part 2

By Kit Oung

By The Energy Managers Association

36

By Gordon Walker

By David Smith

By Paul Dorfman

By The Energy Managers Association

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THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

INDUSTRY FOCUS

3

FOREWORD by

PAUL EGGLETON

Commercial & Business Development Director at Mitie Sustainability

THE EMA MAGAZINE

Welcome... ... to The EMA Magazine’s 7th edition and first birthday! It’s great to have been asked to reflect on the success of the first year of the magazine and look forward to the future.

When I look back on what has been covered in terms of topics and content, along with the breadth and depth of knowledge, it’s great to think that this has been produced by colleagues across our industry who are passionate about Energy Management!

We’ve seen content span the familiar subjects but also cover the innovation and changes that are gripping our industry.

Energy management, along with many other sectors, is in the midst of a digital transformation and this is bringing new opportunities for individuals, end-users and services providers.

The world of energy is integrating deeper into our lives; our homes; our workspaces; how we travel; and fundamentally how we generate, move, and consume energy is changing.

Our industry continues to be a very exciting place to be and the opportunities to develop and apply new skills to meet these changes will continue to drive the content in this magazine.

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

So happy first birthday to The EMA Magazine, I look forward to reading many more editions in the coming years!

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Kind regards, Paul Eggleton

EDITORIAL

The Energy Managers Association theema.org.uk - Tel: 020 3176 2834 Edita Krupova; Editorial Enquiries & EMA Office Manager edita.krupova@theema.org.uk Jana Skodlova; Training, Skills & Business Development Manager jana.skodlova@theema.org.uk CONTRIBUTORS Paul Eggleton, Vassia Paloumbi, Luke Richardson, Katie Greenhalgh, Roger Low, Mohammad Rafique, Tony Tiyou, Ethan O’Brien, Gordon Walker, David Smith, Paul Dorfman, Kit Oung and Terence Lewis.

ADVERTISING SALES Tel: 0116 3265533 Nigel Stephens, nigel@membertrade.co.uk Jas Singh, jas@membertrade.co.uk EMEX EXHIBITION SALES emexlondon.com - Tel: 020 8505 7073 Michael Jacobs michael@emexlondon.com SUB-EDITORS Jo Franks, Anne-Christine Field PUBLISHER Chris Asselin, chris@emexlondon.com Jason Franks, MANAGING DIRECTOR jason@heelec.co.uk Lord Rupert Redesdale CHIEF EXECUTIVE, EMA The EMA Magazine is published bi-monthly on behalf of the EMA by HEELEC Limited, the organisers of the annual energy management exhibition, EMEX. © 2017 HEELEC Limited, registered in England & Wales Company no.

8785975 VAT number: GB 176 1796 71 Registered office: Treviot House, 186-192 High Road, Ilford, IG1 1LR No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise) without prior written permission.

Any information or material sent by advertisers and contributors, including advice, opinions, drawings and photographs, is the view and the responsibility of those advertisers and contributors, and does not necessarily represent the view of the publisher.

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FEATURES

To be or not to be, in-house or consultant, that is the Question Many organisations seek services of energy management service providers or consultants to work alongside their in-house energy managers or other in-house personnel partially responsible for energy management tasks.

Consultants are engaged for a variety of reasons, from acting as energy managers and investigating potential options for achieving greater energy efficiency, through to compiling audits and reports or purchasing utilities.

The Energy and Environmental Manager at the Bank of England, Vassia Paloumbi shares her experience of working with energy services providers.

identifying of potential energy/carbon reduction projects, helping with relevant target setting and environmental compliance assessments for different sites. But I have also used consultants for data verification and certification purposes. Due to the nature of our work and field I have been lucky enough to meet a large number of consultants and consultancies over the years. I have drawn on the knowledge and experience of various consultants and consultancies to find the best way forward to deliver specific projects, using their experiences of working in similar organisations to better understand what will and will not work well in ours.

The one thing I have not used external consultants for is to write or deliver strategy for the organisations I have worked for. I am a strong believer that the most effective strategies are drawn up internally. I think, where possible, organisations should wisely use consultants as ‘critical friends’ to draw from their experience from other similar organisations.

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

In my experience, some organisations and members of staff can be hesitant to accept an external point of view when it comes to strategy or policies. But I have also experienced times when an organisation has actively used an energy consultant to talk to their board or senior manager in order to get buy in from the top as external views are sometimes considered to carry more weight in certain organisations.

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I have worked as an internal Energy and Environmental manager for a number of different organisations throughout my career, and predominantly in the public sector. Often, my role is situated within the estates/ property team and in most cases I will be the only person in the team working on energy, environmental issues and sustainability. Therefore, I often find that I need to work with specialised consultants as an extra expert resource to help me identify the main issues around energy management, compliance and to set relevant strategies, policies and procedures.

The role of Energy and Environmental manager is a varied one and so in the past, I have worked with consultants who offer a specialised service and their technical skills across a range of energy and environmental issues.

The main services I have procured through energy management consultants are energy audits and

To summarise, consultants or consultancies can be an extra resource of great expertise especially if there is not an in-house environment function (post) within your organisation. But when it comes to strategy, where possible I personally would always look to develop this internally and instead use consultants/consultancies to cast a critical eye over the detail once established and or help with the delivery.

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I am a strong believer that the most effective strategies are drawn up internally. I think, where possible, organisations should wisely use consultants as ‘critical friends’ to draw from their experience from other similar organisations.

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Luke Richardson and Katie Greenhalgh on the right balance between in-house and consultancy.

Luke Richardson, Independent Energy Consultant and Lead Sustainability Officer at Wakefield Council

by trends or anomalies found in energy data or from site observations. Targeted monitoring needs to be justified and communicated well for financial and business disruption reasons. The staff need to be available for questions and potentially training or instructions when you are on site. Showing a new unit manager how to use their controls or to show you what new equipment might be using more gas for example.

A few of the benefits of an in-house energy manager are subtle but not to be overlooked: in house, you’re trusted so people don’t feel as though they’re being interviewed and criticised for their energy use or approach. This helps to build an open honest relationship with people within the company where you can frame your actions as supporting their case and helping to reduce costs. In essence, it is explicit you’re on the same team.

Coming in as a consultant, the reaction is a little colder to your presence, staff behaviour changes because you are there. That spike you’re coming to have a look at may disappear because you are trying to observe it. I still wear my uniform when on site to ensure staff aren’t “behaving for teacher” whilst I’m looking into the reasons I was an in house energy manager for Flamingo Land for a particular change in the profile. As a consultant, Resort, a theme park, zoo and holiday village from 2014 the natural path is to try and achieve action and results to 2016. I am now engaged with them on a consultancy quickly. This produces time pressures and the need to basis. Following my studies of Environmental Science persuade others to instigate change. This can come across and Management MSc, I as pushy and salesman like started my career at North which many contractors have Yorkshire County Council Coming in as a consultant, the reaction unfortunately fallen fowl as an Energy Assessor. I first of whilst approaching the started working at Flamingo is a little colder to your presence, company.

Land as their Systems Auditor staff behaviour changes because you and then shortly after, in In house I completed the addition, I started investment are there.

That spike you’re coming to EMA ESOS training to aid in planning for City of York Council’s social housing. My have a look at may disappear because the company’s compliance with the Energy Saving auditing led to me knowing you are trying to observe it.

Opportunity Scheme the sites buildings, staff assessment and in return they and management structure received all information and well and within a couple of legacy of that process along all of the data associated months I took the energy lead as the emerging ESOS with it. compliance date and some issues with the CRC EES needed addressing.

As part of the auditing required, we used portable loggers to assess consumption across a varied range of In house or Consultant? assets: rides, restaurants, park homes, kiosks and lighting Being in-house, I was regularly on site, available to answer alongside the existing metering arrangements. This was questions, monitor behaviour and aid the discussion done with others in house which identified key contacts surrounding new projects with an energy bias. Persuading quickly, and also people who were particularly interested senior management that installing a CHP unit would in this area of work. Knowing the champions and those deliver savings as opposed to a straight boiler swap was you can trust to instigate action in your absence was one of these meetings I was pulled into last minute! I crucial to knowing I could deliver the same impact on a was also available ad hoc to help other team members consultancy basis.” to consider their use and notice where things could be improved. A good example is having conversations Which is best? regarding close down processes so equipment was not “I feel large organisations and the public sector are left on or why particular machines were required (or not) more suited to in house energy managers. The systems to be on overnight. of governance and corporate structures need an experienced person to navigate. Identifying the people On a consultancy basis this site knowledge requires with the correct level of authority, the timescales needed regular site visits at different points of the day, informed

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THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

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ANNOUNCEMENT

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

environment, facilities and engineering • Interested in becoming energy managers • Newly appointed energy managers.

The portfolio of upcoming courses:

• • • •

Fundamentals of Energy Management: 8-9 June, 19-20 October Lighting – Basic Understanding: 8 June, 24 October Energy Assessments, Measurements and Verification: 7 June, 18 October Energy Management Strategy: 6 June, 17 October Understanding and Delivering Behavioural Change Programme: 20 September, 29 November Energy Procurement: 9 May, 4 July, 27 September Water Management: 13 June, 28 September Data Course for Energy Managers: 11 May, 26 September, 6 December Become an ESOS Lead Assessor: 29 June, 26 October

EMA Seminar

Is Energy Management Aligned with your Business Objectives?: 21 September

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

FOR MORE INFORMATION VISIT www.theema.org.uk

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

• • • • •

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and getting a binding decision takes time, experience and often a great amount of patience.

Any energy manager needs to fully understand the business, their needs, drivers and goals as well as potential barriers. Small businesses are unlikely to need an in house energy manager and this would extend to SMEs where there is not the expertise or desire to identify the opportunities within their area of work. The brief is usually to reduce bills so demonstrating a reduction in cost is achievable with a relatively light touch approach, avoiding many of the issues on influencing behaviour change.

The ability to steer business critical decisions is only achievable if the board want you there in the first place.

In house energy managers already have the role and mandate but consultants are usually called upon when that expertise is already accepted as needed. I would argue that the organisations that have put sustainability issues at their core, with an in house energy manager, are achieving more per pound than those calling on consultants on an ad-hoc basis.

Our reality is that energy managers (or carbon/ sustainability managers) are seen as a “nice to have” in some areas of business, rather than business critical, as protectors of the bottom line and potentially top-line. This mind-set is a tough one to crack. In my view, consultants carry expertise that should be used and called upon for specific projects alongside an in-house presence who will champion the cause within the organisation and more importantly notice when this expertise is required.

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

Katie Greenhalgh, Senior Energy Projects Officer, Nottingham City Council

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In Spring 2016, I decided to take on a new challenge and move from my position as Environmental Consultant at Investors in the Environment, which I had held for 5 years, to a Senior Officer position in Nottingham City Council’s Energy Projects Service. Here, I describe my reasons for the change, as well as exploring the differences I have found between the two roles.

Moving away from a career in consultancy presented an opportunity that I had been increasingly interested

in, which was to have greater influence and control over project development and implementation. Having recently returned from having my first child, I also saw a range of practical benefits from the move, including flexible working hours, reduced national travel and less out of hours work commitments.

In my role as environmental consultant for Investors in the Environment, I provided a range of services to business and local authority clients. I was often given a defined brief and provided the technical information an organisation required to achieve a pre-determined objective. This could include an energy survey, renewable energy feasibility study or development of an Environmental Management System, usually to reduce costs or increase competitiveness of the client organisation. Working in this way had the benefit of gaining a wide range of experience, working in different sectors on a variety of projects and often under tight time pressures which I thrived upon. However, apart from supporting clients to influence decision makers through reports and presentations, the project was often then handed back to the client to take forward.

In my new role within the Energy Projects Service of a large organisation, I have the opportunity to work on projects from inception to completion and ongoing monitoring. It is incredibly satisfying to research a new idea, present it to management and see a project move from planning stages to implementation and then be able to track the impacts a project has had. This year we have invested over £475,000 in energy efficiency projects

“

It is incredibly satisfying to research a new idea, present it to management and see a project move from planning stages to implementation and then be able to track the impacts a project has had.

”

and have an ongoing programme to invest in renewable technologies, which is helping to cut energy bills and generate an income for the Council, protecting frontline services and contributing to Nottingham’s ambitious carbon reduction strategy – in fact last year we celebrated meeting our 2020 carbon reduction target 4 years early!

There has also been more variety than I had expected; although I deliver some ongoing programmes of work, such as those outlined above, I also have the opportunity to consider more innovative technologies which was not always possible when given a defined brief by a client. I worked on a bid to secure £200,000 funding from Defra’s Air Quality grant programme, enabling us to trial

innovative stationary fuel cells in our building stock, and have also explored opportunities to implement Demand Side Response, battery storage and expand Nottingham’s district heat network.

There are of course different challenges which come from working within a large organisation, including a complex organisational structure and many internal stakeholders to consult with, as well as the stringent approval processes which is required within a local authority setting.

I believe there is real benefit to having in house energy management roles; • they are cost effective for an organisation compared to consultancy fees, with the rising cost of energy providing further justification for an internal role as higher cost savings will be available, • individuals can take ownership of a project and drive it forward, • large, complex organisations benefit from a single, long term point of contact for continuity, co-ordination and project management, • expertise is developed and retained in house, and • team members have more opportunity to consider innovative technologies and energy management strategies.

70.6%

51%

1

2

42.2%

There is also still a lot of value that consultants can provide, particularly where there are specific packages of work which an organisation doesn’t have the capacity or expertise to deliver, or perhaps where an SME can’t yet justify a full time energy management position.

3

3% 30% 33%

30%

67.5% 68%

2.5%

70%

97%

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

Successful consultants will continue to offer specialist, niche services and will take advantage of policy changes, for example supporting organisations with legislative changes post-Brexit, or the changing role of Distribution Network Operators. Support with the wide range of emerging and often competing technologies we are seeing will also be an area of growth. In this exciting and fast changing sector, there is opportunity for both in house energy managers and consultants to continue to change organisational practices, reduce energy consumption, costs and carbon emissions, and importantly drive forward change and innovation.

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FEATURES by

THE ENERGY MANAGERS ASSOCIATION

The cost of water in the new marketplace Are you already bored with water deregulation? The answer seems to be either yes or have not heard of it. The non-domestic water market opened last month with 21 licences awarded to new water retailers.

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

It will be worth shopping around, but for smaller customers with (for simplicity sake) a water spend of £1,000, the margin for the retailer at the market default rate of 6% will be £60. So at a lower retail rate of 5% the customer saves £10. Will it really be worth switching for a £10 saving?

However, there could be far larger savings if the contract is based on water efficiency. If through a contract a customer is helped to save 10% of the water used, then the same customer could save £100. The tight margins mean that it will be difficult for Third Party Intermediaries (TPIs) to make a margin, therefore it is worth checking that any TPI that arranges a contract is transparent in their fees.

If a TPI charges a fee for arranging a contract, the fee could well make it more expensive than picking off the shelf from any of the licensed retailers.

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Most of the water retailers are offering not only competitive pricing, but also one bill, better service and in some cases water efficiency. If delivered these would be music to the ears of those energy managers who deal with water as part of their role by reducing the time spent on paperwork. The larger companies should be able to shop around for cheaper water.

The majority of the market has been already transferred to the retail arms of the water companies, or in the case of Thames customers to Castle Water, and Southern to Business

Stream. In order to protect the customers Ofwat has decreed that these transferred customers can be charged a maximum of 6%. This means that the default charges for most contracts to be competitive will have to be less than 6%. So, should this not be good news for the customer?

This will only really be the case for larger contracts as the profit margin for smaller customers will soon disappear through the mechanics of servicing the customers. The water retailers are mandated to read the meter once a year. The average cost of a meter read taken on behalf of the water retailer will be around £5.

If we take into account marketing, securing of contracts, cost of meter reads, billing and servicing the customer, a simple billing query from the customer may well bring the contract value into the red.

The key to the new marketplace is going to be the cost to serve; because SMEs will make little profit, companies will chase the larger contracts. However, whilst initially looking attractive, many could also be really expensive to service. For example, a charity retailer might have a water bill of £100,000 per annum but could well have 600 sites, mostly made up of small shops with minimal water use. If the contract is signed at 4%, the retailer is making £4,000.

However, the mandatory meter read would cost around £3000, and that is without any other associated costs that will need to be added.

Are water retailers prepared for such slim margins? On the market opening there was a flurry of congratulating emails that the deadline set by the 2014 water act was met. However, there should be alarm bells ringing

over whether many of the water retail arms who have been split out of the monopolies have the processes or the skillset to manage contracts on such a tight margin. One way that could cut costs is through bundling water with gas, electricity or telecoms contracts. However, the problem for the consumer in bundles will be the visibility of the charges for water.

The larger retailers may be able to mitigate risk through scale. Some already have significant market share or will achieve scale through merging with each other to create economies of scale. In effect this now means that three companies have around 62% of the market.* • Severn Trent and United Utilities retail arms have merged to create Water Plus 29% • NWG (Northumbrian) Business has merged with Anglian Water Business to create Wave 16% • Castle Water 17% The opening of the English market is based on lessons learned from the Scottish market. It is the largest water retail market in the world and there should be real opportunities for energy managers to make savings for their companies. Considering the threats of climate change, we have just had a really dry winter that will mean water will become ever more precious. Wouldn’t it be fantastic if the driver behind the market was saving water? A win on cost but more importantly a win for the environment. *Based on customers who associated retailers have inherited from their wholesaler, not accounting for any switching.

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CAREER & TRAINING by

ROGER LOW

Chartered Energy Manager at Defence Infrastructure Organisation (Ministry of Defence)

“Apparently, I’m an energy manager!”

My career in energy management, in seven easy questions (With apologies to Andy Clarke, from whom I nicked the title).

of energy. The fact that I am also an environmentalist made me realise that I could achieve something in energy, as it could have a real impact.

When did you first hear the term ‘Energy Management’?

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

Working in the Ministry of Defence, with the Estates Management section of a local Brigade, the first time I heard this term was in 2001, in relation to fuel deliveries and storage. I was loaned to our accounts payment section to help with a backlog of bills, due to staff illness, and had the distinct pleasure of processing 700+ oil receipts; some came from the usual route of Quartermasters, but several came from Energy Managers, so this was when I became aware of the job and its role.

What made you choose energy management as a career?

Initially, I carried out the role unofficially as a favour to senior management.

Then luck came into play in 2003, a vacancy for a Brigade Energy Manager came up, which came with a promotion and funding for outside specialist training, which I grabbed.

(Whether the fact I was the only applicant affected the result, I cannot say). My Line Manager gave me a lot of leeway to get the appropriate professional training, as well as attending industry exhibitions and conferences to get acquainted with the role; and telling me to get out

on the estate and familiarise myself with the actual sites, something which any self-respecting energy manager should do – how can you manage sites if you don’t know what is happening on them?

Once suitably qualified, I joined the Energy Institute as an affiliate to start with, and started my job in earnest; rapidly discovering that most people did not know or understand what an energy manager did, but having the advantage that I could build the role into something useful covering 120 sites in the SW of England.

I took on the role of Brigade Energy Manager, and started working with other managers across the MoD, and discovered what a broad remit the role entailed – from project development to resource management, behavioural change to data usage.

In 2008, I was offered the Regional

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

I didn’t, it chose me!

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I was working as an estates management officer, when I was tasked to survey and report on the condition of our LPG installations, as I was the only one in our office with any experience of fuels. (In my case from having worked in a transport unit, managing a leased fleet of vehicles and their fuel usage, same reason I got voluntold to help with the receipts). I was given a four-inch thick spring binder with the MoD and LPGA guides on LPG installations, and asked to produce an in depth report on the sites.

After getting deeply involved in the subject, I realised that I was actually enjoying the work and was very interested in the technical aspect Crown Copyright

Crown Copyright

In 2012, the Regional Divisional structure was abolished, and I transferred to my present post with the Defence Infrastructure Organisation, which has given me a national role, dealing with EU ETS and CRC, as well as controlling capacity requirements, reviewing projects and making use of my knowledge and experience to help our new Area Utilities Managers in their day to day work.

What is your biggest achievement to date?

That’s a hard one, really there are two.

When I took over the Divisional role, it had been empty for two years and everything had slipped or gone quiet, and I effectively had to start from scratch. Persuading the management to recruit consultant energy managers, and fund our work was interesting, as it was still viewed in some quarters as a black art; but we succeeded and got the Division energy assets running efficiently and

to the point that we were developing our own energy champions scheme (Energy wardens in MoD speak), benchmarking methodology and data analysis system.

Secondly, gaining the Chartered Energy Manager title, this means a great deal to me.

What is the best approach to attract new talent into the energy management sector?

Ensure that the potential new managers can see a clear and gainful career path, that shows that they will achieve something good and lasting, and comes with sufficient reward to attract people with suitable qualifications; and if they don’t have these, ensure that the necessary training is available to them.

A good salary is a good attraction, but is not the be all and end all; I have seen energy managers also being tasked with health and safety, waste management and even being used as a spare hand for overworked offices. The role has to be respected as a separate, distinct and valued position; that can deliver financial savings, in a sustainable and practical manner, which will benefit the business now and into what is fast becoming an unsure future.

What advice would you give to someone looking to become an energy manager?

Take up drinking!

Seriously, think carefully before you decide to take on this role, it is not easy or simple, and can be a major part of your life. If you decide to go for it, then do it properly, follow a well-co-ordinated training programme and visit some of the exhibitions and conferences before you finally decide, you will be surprised what you can learn from these and how open and helpful other more experienced energy managers are.

What qualities should a good energy manager possess?

Patience, as a start, as initially the work will go slow until the senior management realise the advantages of your role and what it can deliver, and because some managers need to be spoken to veeerrryyy slooowwwlly to get their heads around what can be a very geeky profession.

Secondly, inquisitiveness, you will find that this role needs lifelong learning and every day is a school day, and you will be surprised in what you will learn.

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

Divisional role that I gladly accepted, which covered 300 sites across the whole of the Midlands and Wales, and came with the management of four other energy managers, and we made a great team. We achieved a great deal, and it is a time that I still look back on with pride.

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CAREER & TRAINING by

THE ENERGY MANAGERS ASSOCIATION

Do YOU have the skills needed?

W

e approached a couple of our delegates to share with us (and you) the drivers behind their decision to attend the EMA courses in the past few months and how the attendance may have benefited their professional development. While for some the benefits may be obvious, it is interesting to find out that the training also brings about long term opportunities not only on a professional level but also the organisational one.

Mohammad Rafique – Energy & Environment Officer, Estates & Facilities Management, Surrey Police

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

“Energy management is part of my daily job responsibility. I oversee around 82 energy accounts for the Surrey Police estates. So it is really important for my role to have a clear knowledge of energy procurement techniques to secure the best energy prices available in the market. As an Energy Manager, I also define energy policy objectives, targets and action plans for the Surrey Police.

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EMA offered me a good opportunity to attend the Energy Management Strategy and Energy Procurement courses. Both courses widened my knowledge of energy management, and I now have a clear understanding of different types of energy contracts, all kinds of energy charges and an overall view of the energy market and how it works. This helps me to make the right and informed decisions on energy procurement and how to avoid unnecessary charges by controlling energy usage.

More importantly, we have taken a structured approach to define Surrey Police energy strategy for the next 5 years. We have clearly set our energy baseline, SMART target and action plans to deliver our energy objectives”.

“With a background in engineering and having previously qualified as a Domestic Energy Assessor, I felt the need to expand my knowledge and have a broader understanding of energy efficiency in systems and organisations, not only in the domestic market, but in the commercial and industrial markets too.

After a few years of self-education, I attended the EMEX conference two years ago and spoke to some EMA members who convinced me to join the organisation, both as an associate member and a learner. I attended several courses and particularly enjoyed the structured approach joining both the technical and management sides. In addition to providing recognised professional qualification boosting my credentials, the training was very effective in giving me the all-round knowledge that I was looking for, and one that was complementary to my work as a Renewable Energy professional running my own business.

Through my experience as a clean energy consultant, I focused on the energy generation and supply side, and the courses have allowed me to gain more insight into energy demand side. I remain passionate about the topic and have launched a blog Renewables in Africa, raising technical awareness about clean energy in Africa and my knowledge in energy management is proving to be a crucial asset“.

Training and educating not only energy managers but also facilities or sustainability managers, operations managers, energy management consultants, analysts, business development and account managers is one of the core objectives of the EMA. Our courses are highly interactive, hands-on sessions often referring to real-life energy management examples and delivered by industry renowned experts. After all it is essential to build knowledge base, understanding and application of principles in constantly developing and complex areas that energy management covers.

2017 DATES FOR THE EMA COURSES TO BECOME AN ENERGY MANAGER OR UP-SKILL AS AN ENERGY MANAGER: 09 May Energy Procurement 11 May Turning Data into Energy Savings 06 June Energy Management Strategy and Plan 07 June Energy Assessments, Measurement and Verification 08 June Lighting – Basic Understanding 8-9 June Fundamentals of Energy Management 13 June Water Management 20 September Understanding and Delivering Behavioural Change Programme For more information, please contact the EMA on 0203 176 2834 or email Jana at jana.skodlova@theema.org.uk

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

Tony Tiyou – Renewable Energy Consultant and Director, O’wango & TT Smart (O&TT)

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INDUSTRY FOCUS by

ETHAN O’BRIEN

Carbon Management Advisor at Cory Riverside Energy

Energy from Waste and Recyclin

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

In this regular feature, we focus on how organisations across different industries approach energy management. Here, we are exploring the world of energy from waste and recycling with Ethan O Brien, Carbon Management Advisor at Cory Riverside Energy.

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Cory Riverside Energy’s (Cory) mission is to provide London with a safe, secure, and sustainable energy supply, derived from London’s waste resource. Cory use a fleet of tugs and barges on the River Thames to transport sealed containers of waste (c.750,000 tonnes pa.) from riparian transfer stations to its Energy from Waste (EfW) facility in Belvedere, South-East London. This 72MW facility powers around 160,000 homes annually. Additionally, Cory choose to work with sustainable aggregate recyclers to produce c.200,000 tonnes pa. of useful recycled aggregate materials from Incinerator Bottom Ash (IBA) and Air Pollution Control Residue (APCR); by-products from the energy recovery process. The overall process moves waste up the waste hierarchy, increases UK resource productivity, and saves carbon emissions produced from mining virgin aggregates.

Further up river, Cory Riverside Energy’s flagship Smugglers Way Materials Recycling Facility (MRF), located at Wandsworth, sorts 80,000 tonnes of recyclables per annum.

Cory’s river based, local waste disposal and energy generation solution has substantial carbon savings compared to road based transport and landfilling of waste.

Throughout the operation using energy responsibly, increasing efficiency and reducing carbon emissions are central to enhancing the Cory Riverside Energy brand.

A unique approach for a unique operation Energy management at Cory has been high on the agenda since 2008. It has officially been endorsed by senior management in a Carbon Management Commitment Policy that governs operations. The policy sets out an ambitious aim; “to become the lowest carbon producer within the industry and to encourage its customers, suppliers and stakeholders to reduce their carbon emissions.”

Cory has long recognised that the practical starting point is to measure and manage the challenges that energy poses to the organisation.

A compliance plan is in place to assure Cory is fully compliant with the Carbon Reduction Commitment (CRC), Energy Savings Opportunities Scheme (ESOS) and other energy and environmental legislation. The experience of the business in using systems to deal with health, safety and environmental risks underpins the approach; the Cory Compliance Team use their expertise in running

an Integrated Management System (IMS) covering an ISO 14001 Environmental Management System, ISO 9001 Quality Standard and an OHSAS 18001 Occupational Health and Safety Standard to develop the energy management strategy within the company. The next phase to enhance the existing IMS, is to incorporate an ISO 50001 energy management system, further demonstrating Cory’s commitment to improving energy management.

To produce energy and manage waste resource, energy is required in day to day operations. Electricity and gas procurement is also managed within the Compliance team; both commodity and non-commodity elements of site energy bills are reviewed to ensure energy charges are cost reflective of Cory’s consumption patterns. As energy costs continue to rise, and non-commodity costs make up more of the final bill, this part of the job will be more critical than ever.

Demand side management is another area where Cory is actively looking into possible revenue opportunities whilst reducing peak demands on the national grid.

Cory’s energy consumption profile is unique. Buildings and operations range from state-of-the-art modern facilities and tug fleet, to more historic buildings on the banks of the river. In the same way Cory tugs navigate the River Thames carrying London’s waste, the route to energy

from London’s congested streets every year. These figures have been externally supported by a leading UK energy consultancy. The ‘green highway’ operation requires careful planning and at Cory’s Charlton site, fleet management is robustly organised and maintained by a dedicated team. Interval and planned maintenance systems are in place for all Cory vessels to ensure the efficient scheduling and use of fuel in the Cory fleet. Cory’s vessels all have engines that are classed as low nitrous oxide (LoNOx) discharge and fuel consumption is tightly monitored. River-going tugs have to contend with many different variables which affect the amount of fuel consumed on seemingly identical journeys. These include: tidal variations, different gross loading on barges and London’s varying weather. To understand these variations, fuel use is benchmarked against different driving factors including: litres per tonne waste; litres per hour and litres per nautical

waste ‘recovery’ rather than a waste ‘disposal’ operation). To the immense pride of all staff at Cory Riverside Energy, the facility is at the top performing end of electricity-only EfW facilities in the UK. The process itself sees its boilers operate at c.850oC, producing super-heated steam to drive BRUSH turbine plant that generates electricity for export to the grid. Exhaust gas from the energy from waste process is further recycled, to maximize efficiency and reduce emissions. Energy consuming processes are monitored and controlled by a Building Management System (BMS) for maximum operating efficiency. Countless energy saving features are in operation and more programmes are always in the pipeline. The facility has also been designed to be Combined Heat and Power (CHP) ready. The use of heat produced in the energy recovery process would significantly increase the overall carbon performance and therefore the development of a CHP solution at the site is a key objective.

Energy is used at Cory Riverside Energy’s waste transfer stations and the Smugglers Way MRF in various industrial processes. These already incorporate various energy saving systems; many motors, conveyors and compressors are variable speed drive (VSD) controlled for instance.

There is excellent visibility of half-hourly electricity consumption, thanks to the installation of Automated Meter Reading (AMRs) meters across sites. The Compliance Team investigate unexplained electricity consumption patterns in half-hourly data and actively report on potential improvement measures.

Cory recently identified that the mechanism for conveying this data back to sites could be improved. An online energy management portal is being introduced, with email alarms to inform staff of overnight spikes in electricity use and triad warnings The Way Ahead issued to facilitate demand reduction Carbon efficiency and opportunities. The aim wider environmental is to widen data access sustainability factors are and improve all-round essential to the Cory communication.

Riverside Energy brand Everyone can and aligned to business benefit from greater objectives. Cory are communication around committed to using energy management. energy responsibly, Energy audits increasing efficiency undertaken as part of and reducing carbon ESOS compliance had emissions. New business already identified a development plans range of energy saving being set out in 2017 are projects and a selection encouraging even more The cleanest, greenest source of energy is after of the most feasible ambition, aiming to all, the unit not used. will be included in a achieve new recognition new ‘Energy Roadmap’ for our performance. implementation Everyone at Cory is programme. aligned on the direction Re-development work is on-going of travel and ensuring that we mile. Indicating the ongoing success across the business and senior work as a team to secure our place of the logistical operation, the Cory management are working to ensure at the heart of London’s resource Riverside Energy fleet have seen an that energy efficiency opportunities management infrastructure into the 18% reduction in energy used per are incorporated into the new future. tonne of waste transported over a business development plan. The 5-year period between 2012 and cleanest, greenest source of energy is 2016. after all, the unit not used.

Author’s profile: Cory’s single most significant area Ethan graduated with an MSc from Cory’s use of the River Thames to of energy consumption, is the the University of Edinburgh Business transport waste, instead of trucks self-generation requirement at School in 2014. Post-graduation, he on the road, saves a significant Cory Riverside Energy’s EfW plant. spent two years jointly developing amount of energy, by using less First commissioned in 2011, Cory renewable energy projects in East fuel. We estimate Cory’s ‘green Riverside Energy EfW is extremely Africa and consulting on energy highway’ operations on the river modern and efficient, the first EfW management for UK businesses, prior save some 14,000 tonnes carbon and plant in London to be accredited to joining Cory Riverside Energy in his removes 100,000 truck movements current carbon advisory role. as an ‘R1’ facility (i.e. classed as

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THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

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savings requires navigating through a sea of usage data. Cory has been collecting robust energy use data for all activities, for over 10 years.

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INDUSTRY FOCUS by

GORDON WALKER

Environmental Manager at Northern Powergrid

Wasteful Thinking at Northern Powergrid

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

Communities across the region depend on Northern Powergrid to power their everyday life.

Regardless of who you choose to buy your energy from, we’re the people responsible for the distribution network that delivers electricity to some 3.9 million homes and businesses across the North East, Yorkshire and northern Lincolnshire. To deliver the electricity we have to undertake works on our assets which can generate thousands of tonnes of waste including items such as asbestos, batteries, oil, plant & equipment, paper, food, wood, and spoil.

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Stretching across 16,000 square kilometres (10,000 square miles), our network of more than 60,000 substations and 91,000 km of overhead lines and underground cables includes four National Parks, six Areas of Outstanding Natural Beauty and four Heritage Coasts.

The very nature of our business means that we have an impact on the environment with visible power lines and equipment on the landscape.

We can sometimes change this and we do seek to make a difference by guiding our own business choices

towards sustainable alternatives such as undergrounding networks where economically viable.

We’re committed to responsible environmental management. It benefits our customers, improves the quality of the environment in which we live and is good business.

Promoting environmental awareness, best practice and legal compliance amongst all staff and contractors is at the heart of how we do business every day. Our Environmental Policy reflects and supports this engagement by establishing the environmental RESPECT principles that guide our company commitment to the environment; Responsibility – Efficiency – Stewardship – Performance – Evaluation – Communication – Training.

We focus on keeping our assets well maintained to help maximise their lifespan and ensure the investments we make for our customers - and the region’s power network - are used to their full potential. The drawback, of course, is that some waste products are generated as a result of ‘keeping the lights on’ and the challenge (or fun as we see it) is to find interesting ways to manage these wastes. The waste types and volumes are variable, dependant on the nature of the work we are doing and the amount we undertake at any given time, so how

do we manage our reactive wastes at Northern Powergrid?

You only have to do a quick internet search to see that there is a plethora of ever helpful advice on waste strategy design and implementation.

Coupled with obligatory terms such as waste hierarchy and circular economy you could be forgiven for putting your head in the sand and getting back to business as usual.

But how do you make improvements to your business without drowning in the sea of material popping up at you? Indeed, how do you make key objectives – such as diversion from landfill – part of ‘the way we do things round here’? We’re not so sure that you need to!

We think focussing on the environmental benefit or outcome obscures the objective of what is trying to be achieved. You are not trying to increase recycling, or take a journey on the circular economy train. What you are trying to do is improve business performance – with a little pinch of doing the right thing (morals are important) and some good business sense (reputation can be as important as finance!).

As we see it, the increase of recycling, re-use or the diversion of waste from landfill are actually by-products of good business management and not (perhaps oddly enough) necessarily

the purpose of it –although it must be said, we whole heartedly welcome these by-products.

Therefore the approach to waste should be similar to any other business improvement project – whether that demands full scale transformational change or incremental step change. You are simply managing your business and the emphasis is truly on ‘simple’. Keep it simple and don’t overcomplicate things. At Northern Powergrid we use a philosophy of Plan, Execute, Measure and Correct to facilitate business change.

Plan To determine what to tackle first we collate as much data as we can – the ‘plan it’ phase has some elements of ‘measure’ in it to begin with. This will provide key information on the least effective process, highest expenditure line and enable direct comparisons for similar service and prices types for our waste operations.

Accurate data is essential so we take our time over the data collection

(and monitoring) process as this dictates how and what we improve - remember the old adage “measure twice, cut once”.

• Where – is it generated from, where is it stored (temporary or longer term bulk storage), where is it recycled, reused or disposed

Our approach is simple, we start by asking questions about our waste; who, what, when, where, why & how and then cross reference each of those with things you can do with waste such as generate it (i.e. create it), handle it, transport it, store it, recycle it, reuse it or dispose of it and so on e.g.

• Why – is it generated in the first place, why is the waste transported in this way, why is it taken to that storage facility, why is it recycled, reused or disposed

• Who – generates the waste (any and all wastes), handles it, stores it, transports it, recycles it, reuses it or disposes of it • What – type of waste is generated, in what form (solid, liquid or gas), what proportion is sent to landfill, what proportion is recycled, reused or disposed of if not to landfill • When – is the waste generated, handled, transported, stored, recycled, reused or disposed

• How – is the waste generated, transported, stored, recycled, reused or disposed, how much does each waste stream cost to generate, transport, store, recycle, reuse or dispose (cost to you as well as the cost of contractors, landfill charges and so on). How much of each waste stream is generated and how long is each waste stream stored. How is it recycled, reused or disposed By the end of this exercise we have a matrix of information (raw data) that essentially feeds our improvement plan - the data itself will inform decisions on what to change and which priorities to tackle first.

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THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

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Execute Be honest, open and accept things for what they are – the point of this is to be very clear about what we are going to have to improve and in what order; but as a side note, we have to remind ourselves that we ‘have what we have’, quite literally.

Every business has constraints such as resource levels, budgets and contractual obligations so the change improvement timeline will need to account for these.

Wherever possible we modify our processes from a traditional make – use - dispose cycle to a simpler make – use – then back to make model – MUM rather than MUD. Our initial assessment of the ‘make – use – make’ (MUM) model highlighted the financial costs associated with placing some waste streams back into the make cycle. We liked the concept of recycling wood and our food waste, and with reminders all around us of those who are less fortunate than ourselves, we really wanted to do something to help out. The challenge was securing funding to be able to have waste streams picked up separately and brought back to life.

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

The first step was to clearly identify our waste streams and work closely with our waste carriers, both hazardous and non-hazardous.

We developed a shared set of basic values and principles so we were both at least heading in the same direction.

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For us identifying opportunities to divert waste from landfill was key to providing financial savings that could be reinvested to provide sustainable alternatives to our existing practices.

During 2013 one of our service providers sent 147 tonnes of solid waste to landfill. By exploring alternatives to landfill such as treatment facilities (based on cost-benefit) by the end of 2015 we had sent only 34 tonnes of solid waste to landfill and this figure continues to reduce as we explore further opportunities.

We used to have a number of hazardous waste carriers but as

discussions about the MUM process progressed it was clear that many of our service providers did not share our enthusiasm. We did not want this to stop our progress so we re-evaluated and refined our waste contracts so we had suppliers that could share and support our journey.

Our tenacity was rewarded.

We generate around five tonnes of oily rags per year which now get a new lease of life. The oil is processed for reuse and the rags are washed thoroughly so they can be reused.

Kitchen waste from our depots and training centres is collected for anaerobic digestion and we try to re-use waste wood that is of good quality; we use local reclamation groups to collect our waste wood via the national community wood recycling project. Half goes to creating energy from waste by turning it into fire briquettes and the other half is reused to make furniture.

Are we getting the business benefits – lower costs, better processes, increased reputation or just confidence that we are doing the right thing? We won’t know unless we keep checking.

The use of scorecards or reports based on the initial data help us track how things are changing – for the better hopefully. However, if we are not seeing any change, or we don’t think the plan is working then we change it. It’s our plan after all so we alter the parts that aren’t working and re-implement until we get the desired results.

To keep driving change we use the simple 80:20 rule. We take what we consider to be the top 20% worst offenders from our data – this may be the highest cost, most waste generated, or whatever we choose it to be.

Our focus remains on improving the processes until we get the desired results, then we repeat the entire process as necessary.

The relationships we develop with our service providers are fundamental to our business improvement, as is ensuring data accuracy and ownership of the plan. That said, we’re not frightened to ask for ideas and we ‘copy with pride’ from others where and when we can.

In 2016, we generated over 2,760 tonnes of waste (hazardous and non-hazardous) at our four permitted sites and over 99% of that was diverted from landfill - a figure that we are extremely proud of.

There is always room for improvement though and we are currently exploring alternative ways of increasing our dry mixed recycling figures at our depots with our waste partner for that service.

Measure & Correct We need to continually update (monthly as a minimum) our raw data that was collated as part of the planning process and we obviously need to keep in touch with how our improvement plan is progressing.

We never just accept poor performance or an unwillingness to improve. Change is always an option and whilst we continue to actively challenge our business practises we will happily accept the by-products of our own enhanced environment.

Author’s profile: Having nearly 20 years of experience in the utilities sector, Gordon’s role as Environmental Manager in Northern Powergrid involves overseeing the management of incidents and pollution control activities, waste reduction & recycling, energy use and carbon footprint. Gordon is also responsible for ensuring compliance with legislation and making improvements to the externally certified ISO14001 management system and associated procedures.

INDUSTRY FOCUS by

DAVID SMITH

Chief Executive at Energy Networks Association

The Gas Networks in a Changing Energy System

Our energy systems have begun another transformation, to meet the ‘trilemma’ of challenges which have driven policy developments over the past decade: how can we deliver energy cheaply, ensure security of supply to keep the lights on and our homes warm, and reduce carbon emissions to prevent the worst effects of climate change?

engines for major users, and responsive distributed gas generation driven by the Capacity Market, play an increasing role. It’s easy to forget that our gas grids are still developing: around 60,000 new domestic and business customers are connected to gas each year, for commercial reasons and through government policies to address fuel poverty. The scale, cost effectiveness and flexibility of the gas network means it will be at the core of our system for years to come.

In the longer term, the energy policy debate needs to recognise that decarbonisation is about more than just electricity. Heat and transport present major challenges, and significantly less progress has been made in reducing carbon emissions from these areas of the economy than in sectors such as electricity generation and waste management.

As they look to the future, the gas networks are undertaking a wide programme of work looking at the role decarbonised gas can play.

If the transformations we anticipate in gas and electricity production and consumption are to achieve their full potential to cut carbon emissions, networks of the future will have to be very different from the ones that have served the UK for over 40 years. To date, changes to energy systems have been most obvious on our electricity network, thanks to the prominence of distributed renewable generation technology and increasing focus on energy efficiency. ENA is leading a major ‘TSO-DSO project’ to consider how responsibilities for operating the electricity network should change to manage the energy system we need.

New, renewable sources of gas are already part of our mix. Biomethane, produced from the ‘anaerobic digestion’ of waste, sewage and other organic matter, is now being injected directly into the gas grid at over 80 sites across the UK. This green gas is reducing the carbon footprint of heat and industry without consumers making any changes to their systems or behaviour. Alongside support for biomethane connections, National Grid are involved in a project in Swindon to explore the potential to produce ‘Bio-SNG’ (Synthetic Natural Gas) from a wider range of waste feedstocks – which if successful would vastly increase the potential for low-carbon gas supplies.

Alongside that, another story is emerging: there is increasing interaction between gas and electricity networks as local CHP

Along with encouraging new supplies of greener gas, the networks are already undergoing their own

transformation. Beneath your feet, the ‘iron mains replacement programme’ has been transforming our old iron network into one using polyethylene plastic pipes. Not only does that almost eliminate the risk of leaks and damage to surroundings, it also prepares us for the future: polyethylene pipes are capable of carrying a wider range of gasses, which could include zero-carbon hydrogen in future.

In their 2016 report on ‘Next steps for UK Heat Policy’, the Committee on Climate Change (CCC) identified that the government should treat hydrogen as an option for delivering heat in 2050, and called for the government to support “pilots and demonstrations” for a hydrogen-based gas grid over the next decade. The gas networks are already leading on a number of projects which will help inform such decisions, and should form the basis of further work. A KPMG report commissioned by ENA last year showed that decarbonising our gas supply would be a cost effective option for meeting future low carbon heat demand, compared to the level of additional generation capacity, network reinforcement and changes to heating technology in homes and businesses.

What does all of this mean for energy managers? Our gas networks are committed to continuing their exceptional standards of safety and reliability. Low carbon biomethane will be an increasing part of the mix over the coming years – opening more options for businesses to decarbonise their gas supply. Longer term, everyone in the energy debate needs to engage with the challenges around heat and transport, the implications of different pathways, and the potential for options such as hydrogen.

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The UK’s extensive gas network has a rich history – from the nineteenth century industrialists’ municipal leaders who pioneered ‘town gas’, through the post war exploitation of the North Sea fields, to the comprehensive national and international network we have today. Gas delivered through the grid heats almost 85% of our homes and delivers 80% of overall peak energy use. The UK network is one of the best developed in the world, and a core strategic asset for energy users.

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INDUSTRY FOCUS by

PAUL DORFMAN

Honorary Senior Research Fellow at the Energy Institute, University College London

BREXATOM: Goodbye, and Thanks for all the Fission Now that Teresa May has triggered some sort of shade of Article 50, the UK must also start a parallel negotiation to leave the European Atomic Energy Community (EURATOM) Treaty. This is important as the EU is responsible through EURATOM for setting all nuclear safety standards for operating reactors and for nuclear waste management strategies, along with radiation and health protection for workers, the public and the protection of the environment. In recent debates in Parliament the Government has failed to give any indication of how it will replace the treaty functions.

around the world which allow trade in nuclear equipment and materials between Europe and with other countries. Take that away and there remains a significantly diminished basis for UK’s international nuclear trade structures.

Moreover, EURATOM is the legal owner of all nuclear material, and is the legal purchaser, certifier and guarantor of any nuclear materials and technologies that the UK buys.

This includes imports to the UK of major power reactor components, as well as uranium consigned for UK conversion, enrichment and fabrication facilities. As UK withdraws from EURATOM, trade in fissile

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Among other things, the UK nuclear industry is particularly worried that leaving EURATOM will complicate and delay plans to build new nuclear.

EDF has already warned that Brexatom could increase the costs of new infrastructure developments and could delay their delivery – code for more cost and time delays over Hinkley C. The UK industries position seems equally malleable.

Whilst Tom Greatrex, Chief Executive of the Nuclear Industry Association (NIA), now shuttles from London to Brussels in a valiant attempt to calm nerves, he previously told World Nuclear news that ‘the UK nuclear industry has made it crystal clear to the government before and since the referendum that our preferred position is to maintain membership of EURATOM’.

Goodbye to all that

One of the most significant aspects of EURATOM is its role in establishing members’ global credibility. EURATOM has 20 nuclear co-operation agreements with other countries

high-ground. As Ramón Luis Valcárcel, the Vice-President of the European Parliament, has said: ‘leaving the EURATOM Treaty would undermine nuclear security’.

So, the UK now faces an untidy scramble to assemble a new regulatory regime to uphold safety and security standards, while negotiating dozens of international agreements needed to maintain access to nuclear technology.

But sadly, the UK has little recent experience of negotiating these kinds of complex nuclear agreements – and time is running out.

Nuclear Safety

The UK nuclear industry is critically dependent on European goods and services in the nuclear supply chain and their specialist nuclear skills.

Leaving EURATOM will inevitably increase nuclear costs.

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material and reactor components with many EU and non-EU trade partners (including US, Canada and Japan) could stop until separate bilateral agreements are negotiated – and nuclear agreements are seldom noted for their speedy completion.

Whilst the general objective of the Treaty is to support Europe’s nuclear industries, it’s also key to preventing civil nuclear materials being diverted to military use - arguably, one of the biggest issues facing the industry.

A main burden of the UK leaving EURATOM will be the need to make sure we cover, and are seen to cover, our nuclear non-proliferation safeguard commitments. The perception is, that outside EURATOM, the UK could struggle to lever the nuclear non-proliferation

The standard of UK nuclear safety is relatively onerous, and is carried out through the Office for Nuclear Regulation (ONR) – but the underlying standards are defined through EURATOM. The UK government argues that future safety regulation will be determined through the International Atomic Energy Authority (IAEA), yet there are key differences between EURATOM and the IAEA. Whereas EURATOM safety standards are legally enforceable, the IAEA only sets benchmarks with no room for binding sanctions.

In practice, this could mean that mandatory EU oversight may be replaced by a more relaxed ‘hands-off’ discretionary approach to nuclear safety compliance.

Brexatom will also impact on the day-to-day work of UK nuclear regulators. Currently, due to the scale of the nuclear fuel fabrication and the very great radioactive waste management problem at Sellafield, a quarter of all time spent on nuclear inspections through the EU is carried out in the UK. Once the UK leaves EURATOM, the UK ONR will have to

Nuclear Research For those interested in the various ups and downs of nuclear fusion, EURATOM is a condition for UK hosting the Joint European Torus (JET) project, backed by funding from almost 40 countries in the EUROfusion consortium. But the real focus of future European and international fusion research is the International Thermonuclear Experiment Reactor (ITER), currently under construction in France. The project can be seen in various lights. As Antony Froggatt, Chatham House, points out, the estimated construction cost of ITER is €13 billion, with Europe contributing 45% of the total budget. The European funding is primarily the EU and its Member States - and if the UK wanted to become an independent partner, it would have to fund a minimum threshold of 9% of the total project (construction plus operating costs), which is thought to be in the order of €20 billion.

What now for Nuclear ?

In an evolving European energy market, the EU (according to Article 194 of the TFEU) has prioritised renewable power. However, as a primary law, EURATOM has pushed for different norms, rules and conditions for nuclear energy compared to other sources of energy.

For example, significant nuclear investment for new UK nuclear at Hinkley C, in the form of State Aid from the public purse, was OK’d with reference to EURATOM’s explicit support of nuclear energy as a general objective.

Given the exceptional depth and length of the financial contract for Hinkley C, EDF and Chinese quasi-state corporations are likely to make a significant withdrawal from UK’s fiscal budget. But since EURATOM’s support of financial structures preferencing new nuclear is now a thing of the past, it could be that things could change. With the

likelihood of further delays in reactor build, the financial problems of the NUGEN nuclear consortium, and the first round of the nuclear subsidy debate behind us, Government and industry are increasingly calling for outright state funding for new nuclear. However, it remains to be seen whether the UK tax-payer and electricity consumer, labouring under increasingly austere conditions, would look too kindly on further generous support for any future reactors.

And paradoxically, UK’s withdrawal from EURATOM could spotlight EURATOM’s legal status and function, and potentially shift the balance of energy in Europe. The UK Government has been one of Europe’s most active supporters of nuclear power, and Brexatom could tip the balance for the remaining EU members in support of a renewable evolution – much to Germany’s delight and France’s fury.

End-game The UK has current bilateral nuclear co-operation agreements in place that are predicated on EURATOM safety regimes — and all of this has taken a lot of time to put in place. These are key safeguards and assurances and that might have serious implications for any UK new-build installations, the nuclear fuel cycle and the UK’s enormous waste and decommissioning liabilities. The UK nuclear industry is critically dependent on European goods and services in the nuclear supply chain and their specialist nuclear skills. Leaving EURATOM will inevitably increase nuclear costs and will mean further delays - a lose-lose for everyone. For nuclear proponents, the industry becomes less competitive - and for nuclear sceptics, safety regulation diminishes.

Author’s profile: Dr Paul Dorfman is Honorary Senior Research Fellow at the Energy Institute, University College London (UCL); Joseph Rowntree Charitable Trust (JRCT) Nuclear Policy Research Fellow; Founder of the Nuclear Consulting Group (NCG); Member of the Irish Govt. Environment Protection Agency Radiation Protection Advisory Committee.

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

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

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

take up this burden, at a time when they are already stretched by existing demands. There are some who worry about whether ONR have the extra capacity and expertise to carry out this work and, inevitably, who will pay?

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INDUSTRY FOCUS by

THE ENERGY MANAGERS ASSOCIATION

Shaping the Future of Smart Energy Management Policy Under the Government’s smart metering programme, approximately 2 million non-domestic sites (including SMEs, public sector organisations and micro businesses) are due to receive smart meters by the end of 2020. There is scope for significant energy savings in these sectors, and access to timely, accurate usage of data through smart metering is expected to play a key role in realising this potential.

The Department for Business, Energy and Industrial Strategy (BEIS) recently finished in-depth research with a range of different types of non-domestic organisations.

The survey sought to understand current approaches to energy management; detect the uptake of energy management solutions; identify how smart meter data is being currently used; and to identify the barriers and enablers to using such data to deliver energy saving benefits.

The Energy Managers Association supported BEIS on this research by running a survey amongst our community.

Thousands of energy management professionals were given the opportunity to make a direct contribution to the research and shape BEIS’s policy thinking about possible activities aimed at supporting non-domestic 30%

organisations to use metering information about their energy consumption, and to improve energy management. Here are the results of the survey.

Survey respondents There were 250 respondents with a range of different roles (Figure 1), with a particularly good response rate from in-house managers, as shown in the figure below.

Most respondents were larger businesses (those able to employ energy managers), but 15% had fewer than 10 employees; these tend to be small technology suppliers.

Most respondents had the energy spend of over £80k a year (>65%) and operated from multiple sites (>80%).

Energy management products and services 72% of respondents said they have seen new types of products and services come to the market recently, such as energy storage, IoT and cloud-based analytics. Others said that while there are limited new technologies, existing technologies are becoming more prevalent or are being updated.

In response to the question: “If you had detailed and accurate energy consumption data for each site that your business operates, how much energy do you think you could save (of your total consumption at that site over a year)?”, the most frequent response was 6-10%, however as shown in the Figure 2, a relatively wide range of savings was identified.

20%

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

35%

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10%

30% 25% 20%

0%

15% 10% 5% 0%

Figure 1: Survey respondents *OTHER inlcudes Energy consultant/strategy, Utilities procurement, Engineer, H&S Manager, Managing Director, Sustainability adviser, CHP manufacturer, Building Services Engineer, Design Consultant, Finance Director, Environmental Manager, Retired Energy Manager

Figure 2: If you had detailed and accurate energy consumption data for each site that your business operates, how much energy do you think you could save (of your total consumption at that site over a year)

Leading the way with touch screen energy meters EM100 and EM300 series: simple set up and fast installation The EM100 and EM300 Series with touchscreen technology, makes user operations such as page scrolling, programming and parameter checks simpler and faster; as well as easy to read. Together with our energy management software solutions, VMU-C EM monitors small/single site installations whilst VMU-Y EM provides a multi-site solution without any ongoing costs.

• Class 1 (Class B) 3-phase bidirectional energy analyser • 45A & 100A single phase direct connection • 65A three phase direct connection • Backlit LCD display; 3x8-digit with integrated touch key-pad • Pulse output, Modbus RTU or M-bus port • Digital input for dual tariff management • MID Certified

ET112/ET340: Transdutores de Energia para aplicações em circuitos monofásicos e trifásicos.

Carlo Gavazzi UK Ltd. - 4.4 Frimley Business Park, Frimley, Camberley, Surrey GU16 7SG - Tel: 01276 854 110 - www.carlogavazzi.co.uk

A range of technologies were seen as the most likely source of granular energy data to generate energy savings (Figure 3).

thought it was likely that a smart energy management market will develop in the next few years to allow smaller businesses to use smart data to make energy savings.

Smart metering for smaller businesses 82% of respondents were aware that smart meters are being rolled out to small business customers. Over 75% Highly likely 30%

Unlikely

20%

Very unlikely

10%

No view 0%

Data loggers

BMS

Cloud based Sub meters Fiscal meters solution

Figure 3: Technologies seen as the most likely source of granular energy data to generate energy savings

0%

10%

20%

30%

40%

50%

Figure 4: How likely is it that a smart energy management market will develop in the next few years to allow smaller businesses to use smart data to make energy savings?

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

Likely

27

TECHNOLOGY by

THE ENERGY MANAGERS ASSOCIATION

Why Energy Managers Need to Understand the Benefits of Anaerobic Digestion

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

There has been a silent revolution in the field of renewables that has grown quietly over the last decade - Anaerobic Digestion (AD). This is not a new technology, having been used in the water sector for decades, but as a solution for dealing with food waste AD really should become part of your strategy. The idea that most food waste has been going to landfill is not only an almost criminal waste of a valuable resource but is incredibly expensive when land fill tax is factored in.

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AD is the epitome of the circular economy.

The food waste is collected and put into the digester, methane is produced that can either generate electricity through CHP or be cleaned and pumped into the gas grid. The residue of the process is a valuable fertiliser that can be spread on fields to grow crops. This is such an obvious way of dealing with waste whilst generating energy that you would expect there to be AD plants everywhere. The reason that there are not is mainly due to regulatory barriers that have only been addressed by Government policy over the last ten years. These have been the main obstacle to building new plant profitably and the development of new technology specifically designed to deal with food waste.

Dealing with the regulatory problems has led to an increase in the number of plants. At the end of 2016, the UK had 540 AD plants, up from 424

a year previously and from 200 in 2011. This growth – underpinned by government support through the RO, Feed-in Tariff and Renewable Heat Incentive – may not have had the profile of developments in solar and wind, but it plays a particularly important role in a low carbon energy system. There are few other technologies that produce reliable, baseload power and home grown renewable gas.

For companies looking to decarbonise, the use of AD has particular advantages. Over the past three years, a growing number of plants are injecting green methane into the gas distribution networks, providing a unique opportunity for companies to decarbonise through using renewable gas. Companies that want to use renewable gas would buy ‘biomethane certificates’ in exactly the same way that green electricity works and, with government support for new biomethane production plants extended to 2021, the supply is only likely to grow. There’s already enough capacity in the UK to meet the annual gas demand for around 170,000 homes.

So, should you be paid for your food waste? For AD to work it needs a constant supply of uncontaminated feedstock. There is a real problem with food packaging being mixed in with the food and although it can be mechanically sorted it is still a headache. Also, due to foot and mouth, if the digestate (the residue that is used as a fertiliser) is to be used on land where crops are grown or animals graze then meat will

often need to be excluded. However, as the value of the gas grows and the price of fertiliser is set to rocket as globally phosphate fertiliser is running out, the income stream may mean that plants will pay for food waste. This may be some way off but it is intriguing to think that not only could you reduce your waste bill but be paid for that waste.

The first hurdle that needs to be addressed is to get AD plant coverage across the entire country so that the energy used to transport the green waste to the plant does not negate the benefit coming out of the process. Siting of AD plants is tricky; the obvious place to put an AD plant would be next to a food manufacturing plant, as the cost of transporting unused material is then low. However, there may well then be a problem in the cost of getting the digestate to the agricultural land where it can be used. This means that there is always a trade off when siting a plant, which may not be convenient for your food waste disposal. Hopefully the growth in the number of plants will address this issue but a perfect solution would have been a country wide plan to make sure each area was covered by AD plants. This of course relied on a proactive government understanding the need for a joined-up approach to renewable energy production which just might not have been the case over the last twenty years.

Many of the big waste companies are now investing in AD and it is worth exploring with them how AD fits into any future waste contract. Not only could there be economic benefits of using AD but it could also help businesses meet their sustainability goals.

ANNOUCEMENTS

EMA ENERGY MANAGEMENT AWARDS 2017 ENTRIES ARE NOW OPEN! Entries for the following categories can be submitted on the EMA website until Friday 8 September 2017.

• Energy Manager of the Year • Junior Energy Management Professional of the Year • Energy Management Team of the Year • Energy Management Consultancy Service of the Year • Energy Reduction Project through Organisational Behaviour Change of the Year • The Most Inspiring Energy Reduction Project of the Year • Energy Reduction Product of the Year • Water Product of the Year • EMA Member of the Year – nominated by the EMA Winners of the EMA Awards will be able to:

The winners and highly commended will be announced at a ceremony on Wednesday 22 November 2017 at EMEX, ExCel, London.

TO ENTER THE AWARDS VISIT www.theema.org.uk

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

• Use the EMA Energy Management Awards 2017 logo.

• Have the category profiles included in The EMA Magazine and EMA website.

• Highlight their achievements with published case studies (The EMA Magazine and website).

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CASE STUDY

Temple Sutton School Case Study by Terence Lewis Background

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

Temple Sutton School in Southend-on-Sea has become one of the largest producers of solar energy in Southend as part of a drive to cut costs by going green.

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The school is a larger than average school with 800 pupils and 100 staff members. The school also has an above average proportion of special educational need pupils and a pre-school centre for under four year olds and babies. For these reasons the school was selected for improvements and energy efficiency savings in late 2014 as a school most deserving in terms of energy conservation, pupil profile and numbers.

The main building was built in circa 1935 as a series of interconnected long brick bungalows with steel framed single glaze windows, draughty wooden doors and felt roofs. Two later additions of two story classroom buildings and the children’s centre were constructed post 1980 adding additional heating load to the existing boilers.

The original sunken boiler house housed a coal-fired boiler, which was updated circa 1975 to three 200kW gas boilers controlled in rotational stack by a building management system (BMS). The heat distribution is through cast iron pipework, incorporating 21 existing BMS activated heat zone control valves, which are located in a warren of below floor service ducts, supplying a mix of cast iron and presto steel heat emitters.

Installation Planning and Logistics Work commenced in April 2015 and was completed in September of 2016. The protracted time line was because of two challenges: (a) Regulatory compliance approval, and (b) Programming works to dovetail with the school activities (most of the major works had to be completed during school holidays).

The project has been delivered with two main areas for improvement in mind – heating and electricity efficiency.

Heating .......

The project commenced based on the foundation principle of “Fabric First” when new double-glazed windows and doors were installed along with ceiling cavity insulation.

The initial survey identified that during the heating season, due to the low angle from the sun, the southerly facing classrooms were overheating which resulted in teachers opening the windows allowing the heat from the radiators to warm up the playground. The chosen solution was to install smart thermostatic radiator valves (e-TRV) on all radiators

All zone valves were inspected and repaired as necessary, distribution pipes were inspected for leaks and the BMS was reprogrammed.

Having dealt with heat distribution and controls, the boiler room was next on the agenda. The existing boiler room is a semi sunken room that originally housed the coal store and coal fired boilers. The existing boiler was three 195 kW gas fired boilers operating in rotational stack according to the heat demand. The objective here was to:(a) Reduce gas consumption and cost (b) Reduce carbon emissions.

The logical selection for an additional boiler was a 200kW wood chip fired biomass boiler because it met all required criteria. Apart from the chip fuel being cheaper than pellets, there were also the additional benefits from the Renewable Heating Incentive (RHI). The new biomass boiler has been installed to operate as the lead boiler in a rotational stack with the existing gas boilers. Due to the energy saving measures already implemented, on initial firing, when the building quickly achieves the predetermined set temperature, the biomass boiler maintains the temperature requirements with minimal gas boiler support, thereby maximising on the RHI income.

Interesting challenges to install the biomass The biomass boiler installation was the most challenging part of

the project. The challenge was to unload approximately three tonnes of equipment, including the biomass boiler, buffer vessel, pumps and associated plant, and have it transported two metres down a 0.8m wide rickety staircase into the boiler room. The solution was to cut a 3m x 3.5m hole into the reinforced concrete roof slab and crane lift the plant through the hole into the sunken boiler room. The access hole and void beneath has been used for the fuel silo and covered with a weather proof sliding lid which opens for chip fuel deliveries.

Electricity

school holidays but also during the term time without interfering with lessons. Awareness of additional safeguarding and H&S measures required for working in a functioning school together with careful stakeholder engagement were vital from day one. All parties attended a meeting and agreed the deployment and movement programme, which explained where work was being undertaken and when.

Funding Crest Project, Feed in Tariffs, Renewable Heating Incentive, Salix interest free loan, Southend-on-Sea Council support through invest to save scheme. The estimated aggregated project payback is approximately 7 years accounting for the school retaining 25% of the saving from day one.

The main aim here was to reduce the electricity cost (see table below) for the school. Micro-generation and patterns of use have been looked at and as a result a total of 754 solar panels have been installed on the roof, providing 180,000kwh a year EMA would like to thank Terence which accounts to around three Lewis, the Sustainable Travel quarters of the school’s pre-solar Engagement Manager at Southend electricity demand. Apart from Borough Council for providing this the benefit of free electricity, the case study. additional benefits include feed in tariffs and energy export Temple Sutton School spend Net payments.

Lighting throughout the Asbestos (Plant Room) £ 51,431.27 school was upgraded to Biomass £ 145,986.86 high efficiency LED lighting, creating an estimated 60% Lighting, TRVs, Insulation £ 81,763.89 energy saving from the lighting circuits.

Fridge controls £ 1,125 Solar PV

£ 217,905.13

Lessons learnt

Zone valves

£ 3,452.13

In order to meet the required timeline, the project works took place during weekends,

Building and windows

£ 165,826

Totals

£ 667,490.28

Investment returns Capital spend for works

£ 667,490

Pre-work aggregated energy spend per year

£ 69,879

Post-work estimated aggregated annual energy saving

£ 45,421.35

Estimated income from Crest Grant, Fits, PPA and RHI adjusted for Biomass chip purchase

£ 73,989

Subtotal energy savings, plus adjusted Fit, RHI and Biomass fuel purchase.

£ 119,410.35

Retain 25% of savings

£ 29,852.59

Annual repayment for works

£ 89,557.76

Payback estimated in Years

7.45

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

within the southerly facing classrooms. e-TRV maintain room temperature to within 0.5 degrees, they sense when a window or door has been left open, and de-activate the radiator to save heat. They then monitor the temperature and when the window is closed re-activate the radiator. All exposed flow and return heating pipework has been insulated to conserve heat energy and maintain close heat control within the building.

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USER’S GUIDE by

KIT OUNG

Energy Savings Strategist – Energy Savings, Efficien:ology

Industrial Strategy Needs an Active Energy Management Culture – Part 2 In January 2017, the UK Government launched a green paper on “Industrial Strategy”.

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

To address the needs of an Industrial Strategy and balance the energy trilemma, we need to address the needs of industrial and manufacturing organisations. A company may simply either be: (1) having a cognitive bias leading to decisions for not implementing (or deprioritising) energy savings; (2) burnt out; (3) starting its operations in the UK from scratch.

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

The needs of these three groups of organisations are different and there is not one solution that fits all of them.

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In Part 1, published in the March-April issue, we explored: Introduction and background Key 1: Addressing organisation with cognitive bias in energy Step 1: Become aware that you can use less energy and wanting to act Step 2: Make energy consumption visible Step 3: Find and implement opportunities in a way that maximises savings and minimises cost In Part 2, I will continue with….

Step 4: Make energy saving messages specific and address stakeholders’ pains Step 5: Engaging and bringing people along the energy saving

journey Step 6: Celebrate successes and continually improve Key 2: Addressing organisations with “burnt-out” issues Key 3: Addressing organisations planning to build new plants Conclusion Step 4: Make energy saving messages specific and address stakeholders’ pains The quirks of scientific and engineering language may sometimes be difficult to understand.

Engineers, like me, tend to write ten paragraphs of long sentences, in a passive and third person language when a simple, concise, and short paragraph does the trick.

If identified energy-efficient technologies are to have a fighting chance of getting attention from senior management and being eventually implemented, we need to make the energy messages simple and address the needs of various stakeholders in the company. This involves three things: (1) we need to understand that different people, in their various job roles, relate to energy differently; (2) we need to understand the cognitive biases of the various stakeholders; and (3) we need to craft a message that meets the needs of the various stakeholders.

One of the very first tasks is to identify the various stakeholders, not just those with the pen power, but everyone who would benefit from the energy-saving technologies. This includes the operators, technicians, engineers, process owners, managers and senior managers. Next, we need to identify how the energy-saving technologies can help solve their pains or make their work easier … from their perspective, not yours.

And lastly, is to design a targeted and crafted plan for communicating

1. Heskett, J.L., Manage the culture cycle, The World Financial Review, Sept – Oct 2011.

the messages to the identified stakeholders. This is where a nudge or choice architecture kicks in. It is important to communicate with the stakeholders in their language and in their terms. It makes it easy for them to understand and support the proposition. Otherwise, the communication is difficult, can cause a lot of friction, or worst, flares of temper. This is what I call the “chicken and duck talk syndrome”.

Step 5: Engaging and bringing people along the energy saving journey As engineers, apart from the long sentences, in third party and passive forms, we seem to think that communicating once is sufficient.

Various studies have shown that successful companies communicate the same messages at least 10 times more than others and use a range of mediums to do so.

While communication is key to get people on board, that itself is not the end. We also need them to be engaged, motivated to use less energy, and to do something about it. According to the former CEO of Nucor Steel1 , 70% of a company’s success is due to its people actively wanting and driving the change. There is a need to ensure that everyone has a key role to play in delivering energy savings opportunities. This includes: 1. Articulating a broad vision for energy savings, why it is important to the company, how everyone can contribute, and how the company will achieve that vision.

2. Defining and embedding energy efficient behaviours and procedures into day-to-day operations.

3. Ensuring everyone is sufficiently

4. Managing a planned and appropriately resourced energy savings programme, including the delivery of energy savings technologies.

5. Making sure everyone has a role and many chances to implement these behaviours.

6. Giving coaching sessions and touch points for everyone to ask questions, seek clarifications and improvements in their involvements.

7. Providing energy performance information on how key areas are doing as a feedback. Seeking commitments and suggestions for further improvements in the various key areas.

years, she found that when progress and successes are acknowledged and celebrated, it lifts the psychology and attitude of people, and that in turn speeds up the next progress or success. In journal entries where acknowledgement and celebrations are not practiced, it saps the mental attitude and energy, and they report of demotivation and disengagement.

Celebrating successes and progress may be more challenging in some cultures with an attitude of “I paid you” or “it’s your job”. None the less, celebrating is highly motivating and can bring about further success.

In Teresa’s research, many of the celebrations did not even incur cost, many were just a heart-felt appreciation or a small gesture.

8. Establishing high-level policy to cement senior management commitments in making energy savings.

The above steps help to create and embed energy efficient behaviours and practices into the culture of the organisation. A strong culture that desires energy savings will find ways to disarm organisational barriers to energy savings and have a better chance of succeeding.

Step 6: Celebrate successes and continually improve Finally, as part of people engagement continuum, in particular sustaining and encouraging future successes, there is a need to celebrate all success and progress, no matter how small it is. Everyone, regardless of what he or she says, likes to be acknowledged, appreciated and receive a “pat on the back” for job well done.

In a study by Teresa Amabile2, by tracking personal journals over many

Steps 1 to 5 line up a list of technical and non-technical energy savings opportunities, and a culture that supports energy efficient practices.

There is one thing that could crumble the house of cards though and that is a failure to establish and maintain a good psychological contract with everyone in the company. A psychological contract is an unsaid and mutual contract of what the employer and employee expect of each other – the pre-cursor to creating a psychologically safe and supportive working environment.

Many things can build a psychological contract: being authentic, being accountable, being honest and truthful, your word counts, being compassionate, taking an interest in employee issues, etc. They take a long time to build and can be broken with

simple and careless actions. Every organisation needs to pay attention to the deal breakers and make sure psychological contracts are not broken.

UNIDO’s record of accomplishment of this holistic energy management framework shows organisations can achieve between 10% - 20% in the first year of energy reduction. It also shows intensity of energy reduction is 100% to 200% faster than in usual business scenarios.

Key 2: Addressing organisations with “burnt-out” issues The six steps above will not be suitable for an organisation that is “burnt-out”. There are many reasons why an organisation is “burnt-out”, these may be organisations on the verge of bankruptcy or on the way to becoming one. These organisations focus on carrying out tasks that are on a

“moment-to-moment” basis, trying to stay afloat or to survive. Any strategic and/or tactical planning is of a very short-term nature, normally reacting to an impending or emerging crisis.

Organisations in this category are constantly chasing from target to target: this month’s production to the next, this quarter’s financial targets to the next, this year’s compliance audits to the next, etc.

Organisations falling into this category may also be “burnt-out” from the perspective of employees, i.e. employees performing too many tasks to the extent that they are no longer capable of taking on additional tasks and executing them well. Many things can lead to resource constraints and could range from having an overly ambitious strategy, constantly changing operation plans, unrealistic resource

2. Amabile, T and Kramer, S. 2011. The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work. Harvard Business Review Press

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

competent in carrying out the energy efficient behaviours and procedures.

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USER’S GUIDE

planning, setting goals that are unachievable, being over lean / under-staffed to carry out all essential tasks and/or poor competency leading to an inability to supply its product or services on time and in full.

Based on a normal statistical distribution, the number of companies falling into this category could be measured in double-digit percentages – several folds larger than what most people think! Yet, these organisations have not been recognised by any technical and behavioural change communities.

For these companies, energy-saving technologies, government mandates and behavioural change techniques are noise and an irritant. This has nothing to do with the rationality of “energy-saving” messages and the ability to improve profitability of the company. It has everything to do with the organisation needing to address activities in order to survive; everything else is a luxury or a cost.

Design: The design of the new plant and machinery needs to be correct and use the lowest possible energy consumption. For example, dairy plants need 80oC hot water, yet most dairy plants install 10 barg steam boilers of which nearly 50% of the energy is lost. Having the knowledge of BAT and energy performance of similar facilities is important for designing and predicting its future energy performance. Such benchmarks exist and should be enforced by all organisations at the design stage.

Together with BAT information, carrying out energy efficiency design reviews, also known as design qualification, helps companies to use as little energy as possible. All this needs to be done before approving the design for construction. This is because energy consumption and energy cost of the new plant is over the lifetime of the plant. Very

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

“

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These “burnt-out” organisations need support to “get out of the rot”. It includes, among other things, supporting them to set good strategies, planning achievable goals, allocating appropriate resources and ensuring staff competency in key areas.

Only after the organisation is out of the critical areas are they in a position to look at longer-term issues, such as energy savings. For those people helping companies resolve burnt-out issues, there is a need to ensure all revised or new business processes are inherently energy efficient – to avoid having a need to undo them later.

Key 3: Addressing organisations planning to build new plants For organisations wanting to invest in new plants and facilities or doing major and/or deep modifications, the challenge is, yet again, completely different from the organisations covered thus far. For these organisations, it is about chasing after energy efficiency. Here is where the normal engineering principles and Best Available Techniques (BAT) apply.

a specific feature to be available but this has not been purchased. For example, the design may require a chiller with a minimum turn down of 10-to-1 but the one purchased has a turndown of 4-to-1, thus consumes more energy. The second reason is that purchasing decisions often replace the specified equipment with a lower cost variant without considering its future operating costs. It is important to check that all equipment conforms to its design intent prior to installation. All deviations from the specifications should be challenged and replaced to its original specification.

Installation: The installation may also progress in a manner that contributes to a higher than predicted future energy consumption. For example, overrunning construction cost may result in a purchase of lower and/ or off-specification equipment to complete the project. Or overrunning time may lead to For these companies, energy-saving skipping the installation of key components that affect future technologies, government mandates energy consumption. Again, and behavioural change techniques in this instance, it is important that the installation is checked are noise and an irritant. This has against design prior to testing and commissioning. nothing to do with the rationality Deviations from the design of “energy-saving” messages and the should be challenged and reinstated to design.

ability to improve profitability of the company.

”

frequently, retrofitting the facility at a later date is virtually more cost prohibitive and/or impossible.

Therefore, assessing the merits of energy efficiency improvement should be over its planned lifetime.

After finalising and sanctioning the new investment, most organisations move their focus and attention away to other issues and then come back for the handover. However, there are other aspects that can go wrong and have an impact on energy consumption. Some of these aspects are: Procurement: Having a good and energy efficient design is just the start; the next step is to procure the most energy efficient equipment that supports the design. Two things could, and frequently do, go wrong at this stage. The first reason is that the design requires equipment with

Testing and commissioning: Once the design, procurement and installation is correct, the next stage in a new build and/or retrofit is the testing and commissioning stage. As with the procurement and installation stages, similar issues can arise during the testing and commissioning stage.

As testing and commissioning are normally the last phases of work before handover, it is mostly commonly done in haste. This can be resolved by having a commissioning plan and checklist pre-prepared before construction starts (usually before procurement starts) and checking that all commissioning activities are complete and performed as expected by the design.

Handover: The period between a successful commissioning and handover is not a clear-cut stage.

Many contracts allow for a period of overlap between construction and commissioning to fix

Operational and maintenance: Once the handover is done, the task to operate and maintain the new equipment lies with the organisation. Care should be taken to identify and embed the operating and maintenance requirements. If organisations do not operate and/ or maintain the new equipment in accordance with its procedures and as designed, its energy performance will also suffer.

Conclusion Three types of organisations exist that can re-industrialise the UK. They have differing needs and all play a role to ensure an abundant, reliable and sustainable energy supply.

Organisations that are “burnt-out” require support to improve their operating positions before improving energy performance. Organisations with cognitive bias towards energy need a nudging support to bring attention and focus to the subject.

Organisations who are building new installations require guidance to raise their engineering practices.

As can be seen, there is no single approach that fits the needs of these organisations. Addressing the energy trilemma challenge whilst re-industrialising the nation requires different strategies and approaches which address the needs of the three distinct types of organisations. A strong energy management practice needs to feature prominently and fit into the operating culture of

organisations.

Raising the bar on energy management can take the form of a large scale and well-rounded energy management awareness, training, and guidance plan. Well-rounded energy management training does not have to be a gold-plated specialist training but requires a delicate balancing act between technical and managerial skills. It also needs to be appropriate to their job role and impact on their decisions on energy performance.

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

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

unforeseen issues, and operations and maintenance teams proofing the new equipment and training its employees on the new ways of working. Some call this an operational qualification, others call it a soft landing. Frequently, commercial pressures to operate the new equipment mean that there is a long list of items to be fixed but never enough time to do so. All issues have to be fixed and the actual energy performance compared to its designed energy performance. The root cause to any deviations from its designed energy performance needs to be identified, challenged and reinstated.

35

USER’S GUIDE by

THE ENERGY MANAGERS ASSOCIATION

Solar PV

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

This EMA buyer’s guide is designed to give you some basic information and guidance on how to approach the addition of solar PV to your energy management portfolio, assessing how to decide whether or not solar is right for your building, the procurement process and how to tackle any potential issues that might arise. It also looks into potential storage solutions and offers advice on the nancial incentives and packages available for solar installations.

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What is the procurement process?

Key learning is that kWh should be generated from your system for many years. The value price of an installed system against kWh that will be generated over life of the system NOT just against the kWp of a system.

How can I pay for it?

A self-funded system means all savings directly bene t the occupier where the electricity is generated.

For a zero upfront option you will need to lease (or sub-lease) your roof

and agree to purchase the electricity from the generator under a Power Purchase Agreement (PPA). Always seek legal advice before entering into a PPA. Subsidy/finances – What subsidies are currently available?

Do I get any? If so, how does it work?

Subsidies have been available since 2010 making payments to owners of PV systems for the kWh they produce. The amount that is paid had differing criteria depending on size and type of system. The scheme is under constant review each quarter depending on how much is deployed. The cost of installing PV has dropped dramatically as module prices have fallen globally by approximately 70% since the incentives were introduced. The ROI is far easier to calculate with now only one variable – the cost of energy going forward. A commercial decision should be made against electricity cost savings alone.

Small incentives are still available

What jargon do I need to understand?

• kWp = Kilowatt Peak (size of system/ panel) watch out for negative tolerance +/tolerances of kWp. A positive tolerance means your modules will be no less than specified • Peak Power = Is the max wattage output under set factory conditions • NOCT = Normal operating cell temperature. A panel, or module’s, performance drops off at higher temperatures • Stepped Warranties = Module Output discrepancies can only be claimed at certain times during this period, usually after 5, 10 & 20 years • Linear Warranties = Module Output discrepancies can be challenged at any time within agreed period, usually 25 years • Polycrystalline Modules (Poly-Si) = These cells are formed from many fragments of silicon compressed together and usually blue in appearance • Monocrystalline Modules (Mono-Si) = These cells are formed from a single molten block of silicon usually black in appearance Storage + Solar: are there solutions now?

When generating your own onsite electricity, it becomes important to be engaged with your building’s

energy usage. If your operation runs five days a week but producing electricity seven days a week storage can play a key part in managing “wrong time energy”. By fitting a well-designed PV system (with storage) that is sized on your electricity needs and not just the size of your roof, battery storage can be an easy way of maximising your on-site generation usage and therefore your ROI. What are the costs of storage?

Costs will vary depending on size of storage required but will be cheaper to fit at the same time as PV installation rather than retrofitting at a later date. Technology in storage has changed dramatically in recent years with a lot of expertise coming from the electric vehicle market.

Like the cars, the cost of batteries is coming down as production increases.

What’s the difference between the different technologies?

Typically a PV system can be retrofitted to an existing roof sitting just above the original structure. For new builds it is more typical for the PV system to become part of the roof itself, integrating the modules into the roof saves on duplicating the covering.

“

involved with all design stages so that a building is best fit for purpose of the occupants. While the PV system will improve the EPC rating just for having it, the key is for best use of onsite generation with involvement from energy manager.

What is solar thermal?

Solar thermal generates hot water from the heat of the sun while a PV system generates electricity from the light, rather than the heat. PV systems perform better in cooler conditions.

Do I need a grid connection?

Yes, a grid connection is required for any Solar PV installation that exceeds 4kW per phase.

What are the risks?

There are a number of project risks to consider. You need a grid connection offer, and you need to be able to afford it. Planning issues can arise although rooftop projects up to 1MW in size are covered by ‘Permitted Development’ rules and may require no planning consent. There could be structural implications for your building.

When generating your own onsite electricity, it becomes important to be engaged with your building’s energy

usage

”

When does the energy manager need to get involved in the development of new facilities or upgrades to existing one?

It’s best to get an energy manager

The technology must be the right specification for your needs and there is always the risk, as with all technology, that it could fail after installation. For that reason, you need to make sure you have a suitable warranty package and that your contractor is not going to go insolvent.

What costs could appear?

There are several costs to be aware of. The grid connection application

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

at the time of press but this buyers guide but should not be relied on as any part of your ROI calculation.

37

and DNO costs – it is unlikely that the cost would be more than £1,000 for a 100kWp installation, and in many cases there is no DNO cost.

What is the implication on existing supply contract and can I guarantee continuity of supply?

Standard supply contracts will be unaffected. On-site generation simply means less electricity is purchased from the grid when you are producing and when your demand is greater you pull electricity from the grid in the normal.

Planning costs, even under permitted development rules, you will need to provide the local authority with plans/layouts and a statement regarding the permitted development rules.

Once you have discovered you have a good roof to generate electricity the other side of the equation needs to be weighed up. How much are you paying for your electricity and when are you using it? Take at least one full years analysis as your demand will change thorough the seasons. Two years would be better if the details are to hand. By working with savings from your energy bill, you can work out exact savings delivered by solar.

Remember to build in cost of energy rises (conservative estimate is a 6% rise each year) remembering that your cost to produce will have no

ten years. It is sensible to build in some degradation into the forecast outputs. Your adviser, or the contractor should be able to provide a 20-25year forecast. Dirty panels do not perform as well as clean ones! Efficiency can drop off by over 30% for systems that have not been cleaned. Panels that have very shallow pitch (less than 10 degrees) are likely to need more frequent cleaning than those with steeper pitches (the water runs off the panels at a faster rate and they clean themselves more efficiently).

further increases other than minimal maintenance costs.

How can I track the performance of and savings from my system?

Simply by monitoring what is being generated you see what you are not buying from the grid. Most systems should come with full monitoring.

If not, ask why not. When you can see minute by minute breakdown of generation and usage you are well on your way to understanding your building’s needs and assured further savings will become apparent.

Efficiency of the system, how will this change through the year over lifetime?

Installations that are well maintained and looked after should only experience very modest panel degradation during the first

The full version of the Energy Manager’s Guide to Solar PV is available on the EMA website in the Resources section.

appearance.

THE EMA MAGAZINE • ISSUE MAY—JUNE 2017

Where do I get the information for the business case?

How can I p A self-funded occupier whe option you w agree to pur Power Purch before enter

Subsidy/fina Do I get any Subsidies ha owners of PV that is paid h of system. Th depending o has dropped ly by approxi The ROI is fa – the cost of should be m Small ince this buyers g your ROI calc

Witness testing – the DNO may require the installation to be witness tested prior to issuing a commissioning certificate.

Consultant – unless you understand what you are procuring and that you are comfortable with the specification, it may be sensible to engage a specialist to run the pre-construction and procurement process for you. It should save time, and much of the cost should be covered by capex savings and less time required for you to procure.

varyin offering

The EMA wishes to thank Solar Media Limited for their support in producing this guide.

38

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