The Energyst

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theenergyst.com February / March 2016

16 Windfall gains: Get paid to use

power when wind blows

22 Signal failures: infrastructure

investors demand roadmap

48 Hotting up: ErP directive

provides updraft for heat tech

What should a transparent energy supplier look like?See page 14

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3February/March 2016theenergyst.com

INSIDE THIS ISSUE

Cover Story

What should a transparent energy supplier

look like?

To subscribe please visit: theenergyst.com/subscribe

The new name for Water, Energy & Environment

theenergyst.com February / March 2016

16 Windfall gains: Get paid to use

power when wind blows

22 Signal failures: infrastructure

investors demand roadmap

48 Hotting up: ErP directive

provides updraft for heat tech

What should a transparent energy supplier look like?See page 14

24, rue Salomon de Rothschild - 92288 Suresnes - FRANCETél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87Web : www.carrenoir.com

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M100% Y80%

M48% Y100%

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M100% Y80%

K70%

Financing EnergyAct now or pay later – investors have warned against politically

motivated short-termism and more warning before established

policies are culled

LightingLightening the loading bay – a brief guide to loading bay lighting

Policy & LegislationHeat networks would require serious subsidy to attract investors, according to Wales & West Utilities. Others disagree

News & Comment 4

Policy & Legislation 12

Gas & Electricity 18

Financing Energy 22

Renewable Energy 28

Commercial Heating 32

Lighting 48

Monitoring & Targeting 58

Water Management 64

Q&A 70

Monitoring & Targeting

Clearly seeing the data – delivering information that makes the job of reducing

energy costs a reality

Demand ResponseWant to get paid to use power? Now

you can, as energy firms launch wind balancing services

“This could give businesses connected to the system a competitive edge over European competitors”

60

48

14

1222

Water ManagementGreywater recycling for Abu Dhabi International Airport’s Premier Inn

Commercial HeatingChatham Historic Dockyard in Kent has achieved energy-efficient, reliable heating for three of its most important buildings with high-efficiency boilers

65

16

40

Renewable EnergyREG Bio-Power has been using used cooking-oil to power generators and access National Grid’s STOR prgramme

29

4 February/March 2016 theenergyst.com

COMMENT

Lady Justice is often depicted wearing a blindfold to represent objectivity. Justice should be executed impartially; without fear or favour, regardless of money, wealth, power, or identity. Equality should be the same. There is an increasing push to encourage women into engineering and other technical disciplines and this is a good thing. Allowing girls the opportunity at school to witness examples and understand that they can have a fulfi lling, exciting and worthwhile career by taking STEM (science, technology, engineering and mathematics) subjects is valuable to society in general. If we don’t then half the population that may be been the one’s to revolutionise these disciplines will be lost.

Of course, women make capable engineers and technical operators. One such example in energy is a woman who ticks just about every equality box there is, Jaz Rabadia. A young female British-Asian, who has worked for, Sainsbury’s, Debenhams and latterly as senior manager of energy and initiatives at Starbucks and who is on the Energy Institute Council (Board of Trustees), she has won numerous awards for her work, most notably her recent MBE for services to sustainability in the energy management sector and diversity in the STEM sector. Her work with school children is vital to dispel the myths surrounding technical subjects, as she astutely puts it: “Engineering is not just spanners and boiler suits.”

However, there can be a downside to all of this as a female friend of mine said after she recently attended a House of Commons reception for women in energy. While she is proud of what she has achieved within the energy industry

she feels the whole thing is not a female/male issue. The biggest feeling listening to the speeches was one of unease; it was very much us and them which does not refl ect her experiences of working within the energy industry in mixed sex teams. There was a thrill at the prospect of the demise of the coal industry, that is overwhelmingly male dominated, being replaced by a larger renewables industry where more females are represented. To my friend this was alien and disconcerting to hear. Decisions like this, she feels, should be made for economic, technological or practical reasons not because there are more or less females.

Sometimes positive discrimination becomes so overt that it feels to me like we are pointing out a freak – a woman in an engineering job. ‘Look! Look over here, a talking horse!’ If we are to have equality then it must be blind and not biased. In my career I have employed more females than males and this was entirely because they were the best candidates for the job at the time. Encourage people into STEM subjects by all means but not unequally. In the near future we will need all the engineers we can get, whether they are male or female.

Equality, like justice, should be blind

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A woman in an engineering job. ‘Look! Look over here,a talking horse!

6 theenergyst.comFebruary/March 2016

NEWS & COMMENT

This year more companies will be charged not just for how much power they use but when they use it. A piece of regulation called P272 means that a further 160,000 businesses will have their usage settled on a half hourly basis. With industry experts predicting more volatile half hourly prices, that will be reflected in bills. It’s a major change and could have significant cost implications for larger businesses in the SME sector and upwards.

Between November 2015 and April 2017, some 160,000 businesses in profile classes 05-08 will move to half hourly settlement. Essentially they will pay more or less depending on the time of day they use power.

Their transmission network charges will be based on how much power they use at the most expensive times and the price signals will likely be much sharper. The problem is, most firms will not know when those periods, known as Triads, actually fall until afterwards,

The European Commission has outlined proposals to improve energy security across the bloc. A renewed focus on heating and cooling – which accounts for half of all energy use – could deliver the most significant outcomes.

The proposed heating and cooling strategy focuses on removing barriers to decarbonisation in buildings and industry. Across the EU, natural gas is used for around half of heating and cooling requirements. Add coal and heating oil into the mix and the result is almost three quarters of heat and cooling energy is fossil fuel-driven. Renewable energy makes up around

18% and the Commission wants to increase its share.

One of the main goals is to increase use of waste heat from industrial processes and the Commission is keen to enable industry and end-users to make better use of waste heat and more efficient heating technologies.

Perhaps it will amend the Renewable Energy Directive, which currently classifies some uses of waste heat as non-renewable? A heat pump, for example, would be far more efficient if it was placed facing a cooling system that was dumping waste heat into the environment. However, under the directive, that

approach is classified as non-renewable. That creates perverse incentives and wastes an opportunity to make heat and power more efficient. The Commission estimates that the amount of heat produced from industrial processes could heat all of the residential and tertiary buildings in Europe.

To address the problem, the Commission proposes legislative reviews of the Energy Efficiency Directive, the Energy Performance of Buildings Directive and the Smart Financing for Smart Buildings Initiative in 2016. It has also outlined plans to developing a toolbox to facilitate renovation in multi-apartment

buildings; to promote proven energy efficiency models for publicly owned educational buildings and hospitals and; deliver improved training for building professionals.

The Energyst is producing a heat report in association with Baxi’s commercial brands Andrews, SenerTech, Remeha and Potterton. We would appreciate your views on heat technologies, subsidies, finance and deployment. Please take our five-minute survey at theenergyst.com

All respondents will be invited to a breakfast briefing in London on 5 April and will receive a free hard copy of the report.

2016: the year P272 will hit your power bill

European Commission steps up focus on energy efficient heating and cooling

It should lead to more efficient balancing of the power system, which will be required in a market more reliant on demand response

as they are set retrospectively.Distribution network

charges may also become more volatile, partially due to the effect of intermittent renewable generators connected to local grids, although the most expensive periods will probably remain the evening peaks.

Given that network charges typically make up around a quarter of electricity bills, the cost implications for businesses could be significant.

Why is this happening now?Regulator Ofgem believes that half hourly settlement will make the costs suppliers face in buying and transporting electricity much more accurate. It thinks that will deliver stronger incentives on suppliers to promote energy efficiency. Suppliers’ business customers will now be fully exposed to time of use tariffs and will therefore have to think more carefully about when they use power – or pay the

full cost. That should lead to more efficient balancing of the power system, which will be required in a market more reliant on demand response. The regulator thinks it will also improve competition in the supply market.

Is your firm affected?Your business will be affected if the first two digits of your power bill’s MPAN or supply number (S-Number) starts with 05, 06, 07 or 08.

If you already have an accredited automated half hourly meter, your business will be settled half hourly within 45 days of supplier change or contract renewal. If you do not already have the half hourly meter but fall within the 05-08 profile classes, suppliers must install one and align all the associated services by next April or face fines.

What you have to doP272 presents some administrative burdens.

It means those 160,000 companies need to appoint an accredited meter operator (MOP) and data collector (DC) and a data aggregator (DA).

Businesses that can reduce demand permanently will benefit from lower power costs. Firms that can shift loads at times of peak demand will not only pay less for their power but may also have the opportunity to earn revenue via demand-side response programmes.

7theenergyst.com February/March 2016

The government has outlined sweeping changes to the capacity market, the mechanism intended to ensure the UK has sufficient power during the winter.

Decc also flagged plans to change the distribution charging regime for embedded generators, which experts warn could have serious consequences for UK industry.

Decc wants to buy more power, earlier, and will bring the start date for the mechanism forward a year, to winter 2017/18.

Government also wants to make it harder for companies to get out of contracts. Higher contract termination fees have been mooted. It also plans to increase credit cover requirements.

The intention is to incentivise new gas plant, which the capacity market has failed to do, instead rewarding rafts of small-scale diesel generators. The effect of those diesel farms is to undercut new gas plant.

Decc intends to make life harder for diesel generators via tougher emissions legislation that the Department for Environment, Food & Rural Affairs will consult on later this year.

However, the head of the Association for Decentralised Energy, Dr Tim Rotheray (pictured), has warned that the move could inadvertently penalise back-up generation.

The new rules would apply to diesel generators irrespective of their hours of operation during any given year.

“The Medium Plant Combustion Directive could land hospitals, data centres, industrial users with back-up generation with very significant costs,” said Rotheray.

“[Decc] is absolutely right to stop diesel farms, but diesel back-up has a role to play to ensure security of electricity supply to those sites. The proposals for the MPCD need more thinking through.”

The department has also outlined changes for demand-response providers. Proposals include only allowing demand-side response from load shifting into the transitional capacity auctions, as opposed to allowing small generators to bid. Decc also plans to lower the minimum entry size from 2MW to 500kW.

Decc also flagged plans to change the distribution charging regime for

embedded generators, which experts warn could have serious consequences.

“Decc is right to look at security of supply,” said Rotheray. “But the mention of the embedded benefit [within the consultation] is completely inappropriate. It has nothing to do with capacity or security of supply. If the embedded benefit were to go, we would see industrial plants shutting. It would be very significant.”

Warnings over capacity regime change

Water regulator Ofwat is consulting on the applications process for new water retailers and businesses that want to become their own water suppliers.

The water retail market opens in April 2017. It means all firms in England will be able to choose their own supplier, as they can in Scotland.

Ending regional monopolies is expected to create price competition with new suppliers aggressively touting for new customers.

It is also expected that many new water retailers will become services companies,

bundling in water-efficiency equipment and services into their business models.

To become a retailer or self-supplier, companies must hold a licence. Ofwat has set the application fee at £5,250.

The regulator has also decided to make all existing water supply licence holders re-apply.

Ofwat said it would be “most surprised” if existing water companies had a problem with that.

It is expected that new market entrants will be able to apply for a supply licence in April 2016.

EDF Energy will keep its existing UK nuclear fleet operating longer than anticipated, providing a 5GW capacity cushion at around the time the UK’s coal fleet will have closed.

Heysham 1 and Hartlepool will be extended by five years to 2024 and scheduled closure dates for Heysham 2 and Torness will be extended by seven years to 2030.

No decision has yet been taken on whether it will build a new reactor at Hinckley C.

EDF said the UK’s carbon price floor and capacity mechanism made it financially attractive to keep the plants running longer. These mechanisms provide a windfall

to older existing plant, especially those with ow carbon emissions in the case of the carbon price support mechanism, by effectively handing them extra profit.

In 2015, EDF’s UK nuclear output was 60.6TWh. The firm said that was the highest level for 10 years and 50% higher than when it acquired the stations in 2008, some 40 years after construction began at Hartlepool, the oldest of the four plants.

In total, the extension keeps 4,755 MW on the s ystem at a time when some have predicted the closure of the UK’s coal fleet could otherwise cause severe problems.

Ofwat outlines terms for water companies and self-suppliers

EDF extends life of nuclear plants

Diesel back-up has a role to play to ensure security of electricity supply to those sites. The proposals for the MPCD need more thinking through

8 February/March 2016

NEWS & COMMENT

notifications of compliance and exactly 1000 notifications of intent to comply (that are yet to comply),” a spokesperson said.

“We believe that approximately 70% of organisations that qualify for Esos are on the road to compliance. In the last two days before 29 January we received 1015 notifications of compliance, showing another large surge at the last minute.”

Interestingly, EA stated that: “It will take some time to match all the notifications to the expected participant groups and verify whether the remaining organisations do in fact qualify.”

The agency reiterated that while civil penalties will only be issued in “the most serious cases”, it would start enforcement in March.

The original deadline for compliance was 5 December 2015, but EA updated its guidance last October to allow companies that would miss the deadline to register intent to comply.

More than 1,000 firms sent in their paperwork in the two days before the revised deadline, according to the agency.

“So far we have had 5948

The Environment Agency says it will be contacting those that have failed to comply with the Energy Savings Obligation Scheme in March. It is thought up to 40% of firms have yet to complete mandatory energy audits, although the agency admits it is not sure of the precise number of qualifying organisations.

Following the compliance cut off date in January, EA says just short of 6,000 organisations have now complied with Esos, which requires larger firms to conduct an energy audit and have a director sign it off. Part of the European Union Energy Efficiency Directive, Esos is intended to encourage companies to undertake projects that reduce energy use by highlighting where savings can be made.

Esos enforcement: Environment Agency working out if 3000 firms actually qualify

No carbon capture and storage, no UK heavy industry, government warned

Lighting, building controls and behaviour change initiatives are priority energy efficiency investments for UK firms in 2016.

According to a poll of directors and senior managers carried out by The Energyst, 93% of firms plan to implement energy efficiency measures in the next 12 months. Energy efficient lighting looks set to be the most popular measure, with 79% stating they will invest in new kit. Building controls and behaviour change (both 53%) were followed by onsite generation (42%), demand response/reduction (37%) and HVAC investments (29%), according to those polled.

Around four in 10 (39%) suggested their business could be more flexible with shift patterns or when they consume power. That suggests National Grid’s plans to dramatically scale demand response by 2020 may be achievable.

While the majority said they were unable to be more flexible, sharper price signals may force a rethink of what is feasible. Only 13% of those polled said they currently engage in demand response programmes, with about two thirds citing either insufficient incentives (30%) or unsuitable equipment or processes (35%) as market barriers.

Respondents also suggested ways in which government could improve business energy taxes and decarbonise the economy at lowest cost. These included streamlining and separating taxation and energy reporting, implementing an energy efficiency feed-in tariff, subsidising energy conservation measures identified through Esos and auctioning support for onshore wind and solar.Download the report for free at theenergyst.com

Lighting and building controls top UK firms’ 2016 investment plans

We believe that approximately 70% of organisations that qualify for Esos are on the road to compliance

The chancellor’s decision to axe carbon capture and storage (CCS) funding will backfire when the UK’s heavy industry relocates to other parts of the world, taking GDP percentage points with them. MPs were also warned by the CCS industry that the UK could not afford to wait for other countries to de-risk the technology. Investment is required in the infrastructure – the transportation networks and storage facilities – more than the capture element. Failure to develop that infrastructure will cost the UK “up to 1% of GDP per annum, between £30bn and £40bn”, according to the head financier of the now defunct White Rose project.

The Capture Power consortium aimed to capture CO2 from the nearby Drax coal-fired power station and transport it via a network of pipes to an undersea storage site. Since the surprise decision to axe the ring-fenced £1bn CCS fund in the Autumn Statement, the consortium is now winding up. The developers say they did not know about the funding cut until the day of the announcement (although Drax bailed out some weeks earlier). Whether there is any government support route for CCS left, such as through the

contracts for difference regime, is an unknown with the industry left in limbo.

“Grant funding and the customised contract for difference (CFD) were the pillars that made the economics of the project work,” Richard Simon-Lewis, financing director of Capture Power, told the Energy and Climate Change Committee. He said 15 investors had been willing to back the project – including the Green Investment Bank and the European Investment Bank. But George Osborne’s u-turn had created investor uncertainty that would return to haunt Treasury when UK industry relocates, the panel warned.

“Energy intensive industries that are not insulated from [a rising] carbon price will basically leave the UK,” said Simon-Lewis. “CCS gives them a route to stay in the UK.”

The EU carbon price has been low for some years but key decisions about the post-2020 EU ETS will be taken this year. Energy intensive firms may find themselves more exposed to carbon leakage – and significant cost increases. The panel urged the government to consider CCS infrastructure as a national priority.

theenergyst.com

The UK needs a single body to plan and optimise the overall energy system and it needs to stop trying to reinvent the wheel when it comes to smart grids, according to engineers, technology companies and academics.

Giving evidence to the Energy and Climate Change Committee on smarter grids and low carbon power networks, the panel of experts added their voices to the growing call for an independent system architect.

The impact of intermittent renewables and distributed generation is creating conflict between local grid operators and National Grid, according to the panel. Distribution companies (DNOs) are also hamstrung by the commercial and regulatory barriers which, for example, stop

them owning and operating energy storage assets and fail to sufficiently incentivise them to implement smarter technologies. DNO’s eight-year price controls focus too heavily on old world outputs – and lock the UK into a slow moving energy transition, MPs were told.

MPs heard that the UK must now commercialise lessons learned rather than allocating further funds only to entirely new projects. Equally, policymakers must focus on creating commercial markets to speed smart grid deployment by creating incentives for market participants.

Failure to do so will see the UK miss an opportunity to export smart grid technology and learning around the world, according to the panel.

Drax and Infinis have lost their bid to overturn the government’s decision to axe Climate Change Levy exemptions for renewable power.

The two firms had challenged the decision, outlined in George Osborne’s July Budget, on the basis that only 24 days’ notice had been given.

The High Court concluded that the government had not provided specific assurance on the continuation of exemptions and so was in the clear to amend the CCL.

Drax chief executive Dorothy Thompson said the court had acknowledged the merits of the case, but that the company would now move on, given the ruling in the government’s favour.

“Since their introduction in

2001, CCL exemptions such as Levy Exemption Certificates [LECs] have played a critical role supporting investment in a wide range of renewable technologies,” said Thompson.

“In recognising our right to bring this case, the court acknowledged that the removal of LECs was sudden and unheralded. However, it concluded that the government had not provided any specific and clear assurances on the continuation of exemptions and accordingly ruled in their favour.

“This hearing has raised a number of important issues regarding the way in which the government encourages private sector investment in UK energy infrastructure. The country needs new generating capacity and investment to help make this happen.”

Drax and Infinis lose bid to overturn CCL exemption axe

MPs told UK needs energy system architect

theenergyst.com

Sponsored column

In just over a year, the new half-hourly settlement code will be set. ScottishPower’s business improvement manager Danny Parr (pictured) gives an overview of what you need to know.

If your business has a non-half-hourly maximum demand electricity meter in the 05-08 class, major changes known as P272 are under way. Since November 2015, businesses with these meters have started moving to half-hourly settlements under a new Ofgem mandate changing the way energy usage is metered and billed. By April 2017, the targeted completion date, this will affect some 167,000 businesses.

If you’re not familiar with this don’t worry – there’s still time to work with your supplier to make the switch.

What you need to knowCustomers with maximum demand, non-half-hourly contracts currently have a fully-inclusive fixed tariff and the meter is read manually. These contracts also have fixed energy costs and fixed third party non-energy costs.

Under the new regulation, all businesses in these profile classes who have an automated meter reading (AMR) meter will be remotely switched to half-hourly billing and settlement. Rather than estimated charges they will

be billed and settled for exactly the amount of energy used. In addition, and dependent on the tariff that best suits customer budgetary needs, there’s also the opportunity to save more money by moving their consumption from periods of high demand when some of the third party non energy costs are most expensive.

The overall aim is to give businesses a more transparent view and therefore better understanding of their consumption profile, and for suppliers to assist customers in making informed decisions on the best tariff to suit their needs. It’s truly the start of being rewarded for managing when you use your energy.

Be smarterThis is about knowing how to move your energy usage around, and by having access to your consumption data you can build up a profile of your energy use. At ScottishPower, we have created a customer portal and a useful online savings calculator for you to understand the savings that can be made from managing your consumption, along with the best tariffs for using energy at a time when it’s less expensive. Take action now and make P272 work smarter for you.

More info www.scottishpower.co.uk/p272

Get ready for P272

10 theenergyst.com

UK plc faces looming energy crunchLondon law firm Bircham Dyson Bell LLP has published The Energy Crunch report, which reveals a growing shortfall between UK electricity generation and demand as ageing power stations close and new, cleaner stations are yet to be built

capacity between 2012 and 2030 is 38,603MW

• This March three major power stations will close resulting in the loss of more than 5,000MW

• Only one out of the 22 new electricity generation projects to have been granted consent since 2011 – an offshore wind farm extension – has been built, two others have started to be constructed while work on four projects has stopped

• Emergency measures will keep the lights on, but it is likely this will result in price spikes for both consumers and businesses

• Energy industry experts point to highly ineffi cient government policy intended to encourage the required investment in energy infrastructure as the cause of the likely crunch The surveys of businesses

and the general public reveal:• Only 13% of the general

public are aware of a potential shortage of electricity supply in the next 12 months. When asked if a shortage of supply is likely in the next fi ve years this fi gure is 36%

• Awareness among

The Energy Crunch report provides comprehensive statistics on the large

number of power stations that are now closing and the substantial amount of capacity that will be lost as a result. Alongside this is research on how many power stations have been granted consent to be built, what capacity they will add to the Grid and whether they are progressing to construction.

Combined, the twin pressures of power station closures and fewer new stations being built means that there will be 18,615MW less capacity available to the Grid by 2030. To put this into context, 1,000MW produced by a coal fi red power station is enough to power one million homes. This is leading to the prospect of an ‘energy crunch’ – where demand outstrips supply

This research is supported by two polls – the fi rst of 100 businesses and the second of 1,000 members of the general public – to gauge awareness of a potential energy crunch, energy use habits and how energy use might change. The surveys reveal that businesses are much more

INSIGHT

February/March 2016

businesses of an energy crunch is much higher with more than half (58%) of those surveyed aware of a possible energy shortage in the next fi ve years

• The main factor that would encourage consumers to reduce the amount of electricity they use is the potential cost-saving (68%)

• Smart meters are the energy effi ciency initiative that most consumers are aware of (68%)

• 66% of businesses have contingency plans in place in preparation for electricity shortage or power cuts

• Of most concern to businesses if a power cut occurs is loss of earnings (39%), followed by business interruption (34%) and then security of premises (18%)

• Almost half (46%) of the businesses surveyed expect their energy use to increase, 33% expect it to stay the same and just 21% predict it to decrease

Angus Walker, partner and head of the government and infrastructure department at Bircham Dyson Bell, commented on the fi ndings: “We have observed increasing concern in recent years that as old electricity generation comes offl ine, new power generators are not being built at a rate that is keeping pace.

“Our research establishes the hard facts of how serious the situation is, fi nding that on current projections this is

Managing next winter (2016-2017) could be very challenging – Longannet and over half of Eggborough are scheduled to close, which could mean we lose 4% of current firm MW GB capacity. A cold winter would exacerbate the situation

aware and prepared for possible energy shortages than consumers: 66% already have contingency plans in place to respond to instances of blackouts. In contrast, only 13% of the general public are aware of a potential shortage of electricity supply.

Key fi ndings of The Energy Crunch report include:• 13,767MW UK generated

electricity capacity has been lost since 2012 due to power station closures

• A further 6,827MW capacity will be lost up to the year 2020 and beyond that an additional 18,009MW will go – the total loss of


likely to result in a shortfall between supply and demand – in summary an energy crunch.

“However, the research importantly also shows that there is still time for action. With the implementation of the Planning Act 2008 the government introduced an extremely effi cient planning regime which enables applications for new power stations to progress quickly. It must now replicate that in its policies to support investment in the energy sector to enable the new era of energy generation to progress.”

Interviewed for this report, Brian Galloway, director of Energy Policy at Scottish Power commented: “Scottish Power does not envisage a scenario in which the lights actually go out. However National Grid will need to use all of the tools and options at its disposal to ensure that doesn’t happen. It is a far from ideal situation.

“Managing next winter (2016-2017) could be very challenging – Longannet and over half of Eggborough are scheduled to close, which could mean we lose

4% of current fi rm MW GB capacity. A cold winter would exacerbate the situation.”

Walker concluded: “UK Eenergy security is essential for our personal and economic

health. Although there are emergency measures in place to ensure the lights do not go out we should not be in a position where we need to rely on them. Consistent and clear,

long-term energy policies are required from the government to ensure the industry receives the investment it urgently needs.” te

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POLICY & LEGISLATION

The gas network operator Wales & West Utilities told MPs that its trials at Bridgend had

indicated that investors – either institutional or households – would require a seven-year payback. Unsubsidised district heating might otherwise take three decades to deliver returns.

“Solar has taken off because of that subsidy,” Chris Clarke, director, asset management and health, safety and environment, Wales & West Utilities told the Energy and Climate Change Committee.

Those calculations suggest subsidies some 50% larger than the most generous early feed-in tariffs for solar PV. However, like for like comparisons are unreflective, given the infrastructure component of heat networks. Because vast amounts of heat are wasted in power generation, heat networks can also play a much larger decarbonisation role than other technologies.

Heating buildings accounts for about half of the UK’s total energy demand and a third of its carbon emissions. Using waste heat would therefore dramatically reduce the UK’s energy use and carbon emissions.

London, for example, “has enough waste heat to heat the whole of the city”, Association for Decentralised Energy CEO Tim Rotheray told the Committee.

Yet heat networks account for only about 2% of UK heating, despite Decc finding in 2013 that they could deliver 20%. In countries such as Denmark and Sweden, they make up about 60%. MPs heard that the disparity was down to economics.

Big subsidies for district heat?Heat networks would require subsidies of around 75p/kWh to attract investors, according to Wales & West Utilities. Others say the utility has its figures wrong

“The Seventies oil crises caused different countries to react in different ways,” said Rotheray. “Denmark went for efficiency, France went for nuclear power and the UK discovered gas in the continental shelf and developed the gas network.”

Those infrastructure assets were publicly owned before being transferred to the private sector within a regulatory framework. Heat networks are currently unregulated.

“[Without that framework] it is unsurprising that district heating has not developed in that way,” said Rotheray. “But it is a no-lose opportunity. Heat networks are heat agnostic. It could be that the heat comes from a mine or a data centre. If you assume that heat demand will remain, that people will always want heat and hot water, then it is a no regrets decision.”

The 300GW questionWhile government may baulk at 75p/kWh subsidies (the proposed Hinckley C nuclear contract for difference rate is 9.25p/kWh for 35 years), it will not be able to electrify both heat and transport if the UK is to reduce its CO2 emissions by 80% by 2050Whichever option it takes will be hugely expensive. Given that the UK’s winter peak heat load

is around 300GW, government should start making use of waste heat by creating a level playing field for investment, the Committee heard.

“The government has put in place £300m to develop good quality projects. We have to build them properly and then the government, during this parliament, has to develop a regulatory framework so that if you are an institutional investor, you will be able to [accurately] evaluate different options,” said Rotheray.

Energy Technologies Institute CEO David Clarke agreed. “The level playing field is key, along with the citing of [new] power plants so that the heat can be used,” he said. “Making them ready to use the waste heat whether or not it is used from day one.”

Local authorityRotheray said local authorities would play a key role in bringing forward new heat networks and called for clarity following changes to the Planning Act as to whether they could mandate developers to include district heating within new schemes.

Rotheray, while unconvinced

of the need for 75p/kWh subsidies as mooted by Wales & West, also called for certainty on the current subsidies for

combined heat and power.“It is more complicated because

it spans two silos – heat and electricity – within energy policy. So we need certainty

on the contract for difference feed

in tariff (CfDFiT) and certainty on the

Renewable Heat Incentive (RHI). Government deliberately decoupled them and that has created an issue.”

Bankable subsidyRotheray said his association had estimated that about £700m of investment would have come forward with policy clarity, “but none has, because of the inability to ensure that the subsidy regime integrates properly and that you can bank the CfD”.

Without that certainty, industry would probably keep going for gas boiler replacement, he said. “That means the opportunity is gone and they are no longer generating power on site and are exposed to [wholesale power] prices… So there is genuine time pressure [for government to get it right].” te

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Energyst Media is polling readers for views on heat at theenergyst.com. Please take our short survey, sponsored by Baxi. Your answers will feed into the report and all respondents will receive a free copy ahead of publication.

Pimlico District Heating was built in the 1950s and was Britain’s first district heating system. It used heat from Battersea Power Station. This shows the now disused heat and return pipes that go under the Thames 2%

of UK heating is derived from heat

networks


The Institution of Chemical Engineer’s (IChemE) Energy Centre has questioned

the long-term credibility of the UK government’s energy policies and its ability to meet the climate change targets agreed in Paris after funding for Carbon Capture and Storage (CCS) was scrapped.

In January, Prime Minister David Cameron, appeared before the House of Commons Liaison Committee to face questions on his government’s approach to climate change and CCS.

Cameron stated that for CCS: “The economics at the moment really aren’t working.” This had led to the decision to cut funding for a competition to identify large-scale demonstration projects in the UK.

However, the IChemE Energy Centre believes that this is a missed opportunity and questions how such a decision could have been made before evidence had been submitted by the competition entrants.

The UK government will phase out coal-fired power stations in order to comply with the EU Large Combustion Plant Directive. The planned replacement gas-fired power plants will deliver a reduced carbon footprint because gas produces half the amount of carbon emissions and short-term targets will be met.

However, the carbon emission savings achieved by switching to gas from coal will not deliver the reductions

Chemical engineers blast cuts to carbon capture and storageThe Institution of Chemical Engineers (IChemE) Energy Centre blasts the cuts to CCS funding in the UK and asks how the UK will back the signature on the Paris Agreement, and meet lower emissions targets, if essential green energy projects are abandoned

required to meet the long-term targets agreed in Paris. Gas is only low-carbon if deployed in conjunction with CCS.

Professor Geoff Maitland, vice-chair of the Energy Centre Board and IChemE past president, said: “The cancellation of CCS funding has resulted in the abandonment of two projects that were vital to the UK meeting its CO2 mitigation targets. The decision has also undermined investor confidence in the reliability of public funding of energy projects in the UK.

“If the governments’ signature on the Paris Agreement is to have any credibility, then the UK must adopt CCS for gas as well as coal. There needs to be more clarity and consistency between Downing Street and the Department of Energy and Climate Change. At present, we have conflicting messages on energy policy.

“On one hand, the UK

government signed the Paris Agreement to mitigate climate change, and on the other, it has taken decisions that undermine the very fundamentals of reducing carbon emissions – such as removing funding for CCS, and from renewable energy sources.

“The economic viability of CCS is closely linked to the need for a carbon tax, which will be essential for the global implementation of the Paris Agreement. The current situation of much lower oil and gas prices provides the opportunity to introduce realistic carbon pricing with less pain for consumers.”

Energy Centre board secretary Dr Niall Mac Dowell, said: “We need a better understanding of the distinction between intermittent renewable energy supply (which requires back up capacity) and firm, low carbon capacity (provided by CCS). Providing greater clarity on this issue is something that chemical engineers can help governments address.”

Energy Centre Board chair professor Stefaan Simons added: “To achieve the 1.5°C limit, CCS deployment must be progressed as an urgent priority. This will require proactive support from governments, but the Paris Agreement also demands behaviour change at a personal level; we must all face up to the fact that we will need to live our lives differently.” te

www.icheme.org/energycentre

Professor Stefaan Simons, Energy Centre chair, speaking at COP21

To achieve the 1.5°C limit, CCS deployment must be progressed as an urgent priority

Energy is often businesses’ second biggest spend after staff yet businesses are

still unsure of how their energy bills are made up and often end up paying more than what they bargained for. Customers want to receive a fully transparent contract from their energy supplier with no hidden charges and the reassurance of knowing that the price agreed with the supplier is what they’ll pay at the end of each month.

Customers also want more control and fl exibility over their energy contracts. They want to manage their energy consumption, how much money they are spending and the amount of energy they are generating. Traditionally, customers have been reliant on their supplier to tell them what the best energy products are without any control over what is provided.

According to a survey in The Energyst’s Directors’ Report 2016, 80% of respondents believe energy has increased as a strategic focus. It may be that increased politicisation of energy issues is driving energy up the agenda. Impending cuts to renewable subsidies, changes to business energy taxes and thin generation margins may have had some impact and the arrival of the ESOS is also likely to have raised awareness of energy and energy effi ciency matters.

The report continues to say, “compared to last year’s survey, trust in gas and power suppliers has declined slightly. Trust in brokers and third


What should a transparent energy supplier look like?The questions you should be asking your energy supplier to ensure they are treating you fairly; are checks in place and what are their procedures to eliminate or at least reduce errors?

party intermediaries have improved. Perhaps efforts by some fi rms to improve transparency are paying off. However, the market still faces accusations of profi teering. Ofgem fi ned one broker-cum-business energy supplier earlier this year and the regulator may eventually uncover more sectorial malpractice.”

Meanwhile, the Competition and Market’s Authority’s (CMA) investigation found that small businesses were being overcharged by both suppliers and brokers and called for third parties to reveal which suppliers were paying them for recommendations.

Total Gas & Power (TGP) has supplied UK businesses since 1987. We have become the leading gas supplier to large industrial and commercial businesses in the UK (according to Cornwall Energy – Market Share Report, November 2015). We take the same approach to our electricity contracts which has seen us become the supplier of choice for many large UK businesses.

TGP presents a guide of what to look out for in the industry to ensure that trust and transparency occurs in the customer/supplier relationship.

What to look out for to ensure your supplier is transparent• Economics and pricing • Market intelligence• Billing options

• Invoice validation• Invoice accuracy• Servicing• Quality • Financials

Economics and pricingLooking at the volume and shape of your consumption is the best place to start. The procurement process

should be tailored to the customer’s risk

COVER STORY


appetite. If the customer has a fl exible product they should have regular pricing information and the ability to act switly upon this.

TGP’s Customer Portal is designed to give customers the ability to transact online through their price discovery function, access price alerts, and view live prices.

“We don’t sell residual products,” Chris Billing, director of Major Business (I&C) says.

“We have index-linked products that are fully transparent to the customer. They can purchase the entire [shape] volume off the market with full transparency in the price they are paying – a clear market price.

“With residual products, energy and non-energy costs are wrapped up but with TGP, non-energy costs – transmission costs, distribution charges, taxes and so on – are visible and passed through.”

Market intelligenceMarket intelligence is essential for making intelligent procurement decisions. TGP makes its market information available through its Procurement Portal, as well as being distributed directly to its major business customers.

The three elements encompassed within the Procurement Portal are market information, customer position reporting and a price discovery function.

Customers need to have access to their exposure in a real-time basis. Reporting on their position will aid hedged and fl oating positions and should also reveal the fi nancial implications of both.

TGP has a dedicated team of energy procurement professionals situated on the trading fl oor of the company’s Canary Wharf offi ce. The Procurement Desk is dedicated to dealing with the major business customer

base. The team has direct access to traded market screens, a plethora of market information and direct access to the registered traders for trade execution and market intelligence. The desk is manned from 8am to 5pm on all UK business working days.

Billing optionsIdeally billing options should be tailored to suit each individual customer’s requirements whether it’s paper bills, online billing, EDI billing and Excel billing reports.

TGP works closely with its customers to ensure that the billing provided suits their needs and is compatible with the customer’s chosen billing system. In addition to our standard billing options, TGP will also explore any bespoke billing requirements our customers have and work to provide a suitable solution to all requests.

Invoice validationTransparency of pricing and the ability to provide customers with a complete breakdown of all elements of pricing is essential. Billing validation is a key requirement in restoring trust and understanding of suppliers’ pricing.

All reads that are received by TGP, irrespective of the source, undergo thorough validation checks. This includes but is not limited to; checks made against the meter asset details (serial number, number of dials etc), expected consumption tolerance levels and meter reading history.

Invoice accuracyInvoice accuracy is imperative and suppliers must have processes in place to ensure this. TGP has a stringent validation process to continually improve billing accuracy and monitors this through a number of channels including regular auditing, exception working and

targets to measure billing performance and accuracy.

With TGP following the validation process any meter reading exceptions will be investigated by its Major Business Servicing team with a view to resolving as many issues as possible prior to billing.

Once all readings have been validated, further checks are then completed by TGP to ensure that the estimated billing value of each site is in line with previous billed amounts. A fi nal sanity check is then completed against the confi guration of all accounts before they are considered as ‘good to bill’.

Getting to the truth of the matterThe public is dissatisfi ed with the status quo and this has led Ofgem to refer the energy market to the CMA. The CMA said that electricity prices have risen by around 75% and gas prices by around 125% in the past 10 years. Much of the recent increases are down to increased environmental and related network investment costs. Many who don’t work in energy fail to grasp this and blame the supplier for the rises. Transparency is the surest way to combat this.

The CMA report also highlighted the lack of transparency that is hampering trust in the sector. It calls for wider availability of fi nancial information, and more effective communication of the impact of decisions on bills.

At TGP, we believe that the measures we have in place greatly reduce the chance of billing inaccuracies and lack of information that creates worries through a lack of transparency. It is essential to have trust between a supplier and their customer and this will only be achieved with a complete and open sharing of the information. te

totalgp.com

It is essential to have trust between a supplier and their customer and this will only be achieved with a complete and open sharing of the customer’s information

TGP market informationTGP provides detailed daily market and price reporting, which it considers to be setting the market standard for supplier reports. This service is offered free of additional charge.

Up-to-date market information is available online including:• Within Day Report• UK Daily Power Report• Daily Energy Report• Weekly Report• Monthly Energy Buyers• Historical Prices• Live Price Updates• Gas and Power System

Information• Scheduled LNG Tanker

Arrivals• Weather Forecasts• Explanations of drivers of

price movements

Demand response aggregator Flexitricity will pay firms to use more

power when there is excess wind generation on the system. The company announced it has signed a draft service agreement with National Grid for its new Demand Turn Up service.

The Footroom service will go some way towards limiting constraint payments to wind farm operators. Currently, National Grid pays millions of pounds a year to stop them exporting to the grid and overloading it.

Along with Enhanced Frequency Response, a


Get paid to use wind powerDong and Flexitricity launch demand-side response services to balance intermittent generation

superfast balancing service, Demand-Turn Up is National Grid’s newest demand-side response mechanism. It wants companies to use more power in return for payment to help balance the power system, which is rapidly changing in the face of intermittent renewable power, much of which is embedded on the distribution network.

Flexitricity founder and strategy chief Dr Alastair Martin said such services could help UK businesses – some of which feel they are at a disadvantage to European competitors due to energy policy costs – regain the initiative.

Get paid to use power“Footroom, or demand turn-up, offers tremendous potential to the UK – not only does it put the country at the very forefront of developing and implementing the Grid of tomorrow, but it opens up a world of possibxilities for business and for renewables developers,” Martin said.

“Currently, when the wind is at its strongest, the Grid turns large power stations down or off. But it can’t turn down all of them, so sometimes it has to turn off some of the wind farms. This wastes a free resource.

“With Footroom, businesses can boost productivity for

GAS & ELECTRICITY

National Grid buys 475MW of demand response for next winterNational Grid has procured almost 803MW of extra power capacity to cover winter 2016/17, when the system is expected to be at its tightest for some years. About 475MW will be delivered by unproven demand-side response units.

The first of the transitional arrangement capacity auctions closed with 802.710MW in contracts awarded at a clearing price of £27.50 kW/year. That is a higher clearing price than awarded to capacity providers in earlier auctions, but the delivery period is much closer – for the coming winter rather than towards the end of this decade.

Those awarded contracts can choose to either deliver the full amount of capacity agreed, or a time-banded amount (payable at a rate equal to 70% of the auction clearing price). They had to make that choice by close of play on the day. National Grid said the maximum cost would be £22,074,525 while the minimum cost would be £15,452,168. It will confirm the cost in a final report. Meanwhile, results remain provisional for the until they are signed off by the secretary of state.

The lion’s share of the contracts (59%) went to unproven demand side response units. CHP and auto-generation took the next biggest share, with 274MW in contracts awarded, representing roughly a third of the total. Around 146MW of demand side response exited the auction as the price fell below what they were prepared to be paid for their services.

Of the aggregators of unproven demand side response units

bidding for contracts, Kiwi Power took the most in megawatt terms (173.6MW), more than a fifth of the total auction.

Other successful unproven DSR bidders include: Enernoc (65.1MW); EnergyPool UK (59.8MW); EDF (47.74MW); Flexitricity (39.9MW); Smartest Energy (19.9MW); and Eon (10.4MW). The largest DSR contracts awarded to non-energy companies or aggregators went to Tata Steel (15MW) and BOC (14MW).

Meanwhile REstore secured around 12% of the total capacity auctioned via the two largest existing generating capacity mechanism units. It will provide some 94.2MW from CHP engines.

803MW

57CMUs

264MW17MW

5

36

31347MW

475MW

CHP and autogeneration

DSR

OCGT and reciprocating engines

Oil-fired steam generators

This will have a huge impact across the whole of the UK – and could give businesses connected to the system a competitive edge over European competitors

A split of the generation capacity in power terms and the type of capacity market unit (CMU) that National Grid procured in the capacity auction

theenergyst.com

minimal extra cost and are incentivised to do so. In turn, the Grid can increase the amount of electricity distributed to homes from clean, renewable energy sources.”

The service works by sending a signal to connected businesses, notifying them of an approaching increase in wind and the opportunity to increase demand. Those who do respond receive a payment in addition to the extra electricity.

“This will have a huge impact across the whole of the UK – and could give businesses connected to the system a competitive edge over European competitors,” said Martin. “Being an early adopter of Footroom will pay dividends not just now, but for years to come.”

Wind power balancing serviceDong Energy has also entered the demand response market with its own wind power balancing tool. It wants large business customers to shift power loads according to wind strengths.

By turning down consumption or shifting to onsite generators, they will earn revenue from the wind farm operator and business energy supplier, which is also Denmark’s largest energy company.

The move comes as National Grid, network operators, energy suppliers and aggregators ramp up demand-side response activities.

Energy suppliers are likely to look at new ways of balancing their generation portfolios following regulatory changes to the balancing and settlement regime, which makes it much more expensive if they get the balance between generation and energy supply wrong.

Meanwhile, government has warned that renewable generators will be made to foot the bill for balancing intermittency, although it has not yet outlined

precisely what that means.Dong said its Renewable

Balancing Reserve service means customers can participate without commitment at any point during the year. Most other demand response programmes operate purely during winter peaks.

The prices it will pay customers will be based on actual imbalance costs, and those that participate will receive a per megawatt hour price based on how much load they shifted during the period.

Dong said the service will run via a web-based portal, and require no hardware installation.

Jeff Whittingham, managing director of Dong Energy Sales UK, said: “Dong Energy is investing in the development of new commercial solutions to balance an intermittent generation portfolio, while helping businesses to use their flexibility to create value.

“Renewable Balancing Reserve is different, provides businesses with an alternative way to reduce costs and create new revenue, without the risk of penalties or restrictive schedules.”

The rise of DSRThe announcements of both Dong Energy and Flexitricity came within 48 hours of each other – and as the DSR industry ramps up activity. National Grid procured some 475MW of new, untested demand response in late January.

Last summer the system operator outlined plans to increasingly use demand-side response services to balance the power system. By 2020, it aims to use DSR for between 30% and 50% of balancing activity.

Meanwhile, local grid operators are also trialling smart grid system operator models in a bid to resolve conflicts between national and local grid balancing – and the perverse signals that can occur between national and regional systems. te

theenergyst.com

Sponsored column

P272 is coming and there is no getting away from it. NOW is the time to check your implementation date. It is mandatory and energy bills are changing. Here is the lowdown on the legislation.

P272 is a mandatory Ofgem regulation and will affect upwards of 160,000 sites or 280,000 MPANS across the UK. P272 requires all electricity meters with profile classes 05-08 to be settled on the HH market.

To ascertain if you have affected profile classes, check your bill and find the box that is similar to the layout below. This example has the profile class highlighted in red. If the numbers in this box are 05, 06, 07 or 08 then your meter will be affected if you have an AMR installed.

From 5 November 2015, those businesses in profile classes 05-08 who have already accredited, automated half-hourly meters

installed on site will be priced and settled half-hourly. For those who don’t, suppliers have until April 2017 to ensure affected sites have a half hourly meter and associated meter operation and data collection contracts.

However, where contracts are new, this requirement must be met within 45 days of renewal or acquisition.

If you don’t act, your supplier will arrange a default MOP and DC/DA contract for you. Yet the market in this area is open and highly competitive – acting early can result in significant savings of around 50% of this cost.

BIU’s service will manage your migration to the HH market and covers Automated Meter Reading (AMR) installation and upgrades, appointment of Meter Operator Points (MOP) and Data Collector (DC) contracts on commercial terms, reviews of capacity charging, HH invoice validation and DSR programmes to reduce energy consumptions.

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GAS & ELECTRICITY

With the bengin nature of energy prices during the past year or two, how do you get value out of your procurement choices? Bid Energy’s James Williams talks up one solution

For many a year now larger – and, to some degree, smaller – users of

gas and power have looked to the fl exible price contract market. This has provided refuge against being tied into a fi xed price contract that offered no opportunity to revisit the decision to fi x in the fi rst place.

Each contract has its merits. A fi xed price contract offers budget certainty in an uncertain energy price landscape. On the other hand, a fl exible price contract offers the ability to see how the market evolves with the hope that you catch a downward trend.

Then, with the help of a third party or an in-house team, the intention is to do better – and hopefully never worse – than the fi xed price you could have taken at the beginning of the contract journey.

That’s precisely what it is: a journey. Many organisations would have started out as fi xed price contract customers mainly due to the lack of supplier contract options.

Some will have seen their move into fl exible contracting as an evolution, starting with fi xed-price term contracts, then shorter-term fi xed-price contracts, followed by a fl oating index-linked contract.

Later, part fi xed, part fl oating contracts moved into the fully fl exible contracts with a lock only element.

The most evolved energy purchase takes the form of

roughly the same or worse off than fi xed contracting alternatives is not vindicated. Surely that wasn’t what was sold to the organisation when the decision was taken to enter into this type of contract?

Just like stocks and shares the value of the energy portfolio can go up as well as down. So to see a fl exible price contract as de-risking the organisation by simply breaking away from the single decision for a period of time to multiple decisions over the same time period is self-evidently incorrect.

If you believe the media, UK plc is about to enter into a perfect storm of shortening supply margins, further governmental taxes and closing power stations that can only lead to increasing prices. Surely against this backdrop you

Has the gloss worn off flexible price contracting?

would only expect to see fi xed price contracts – and long-term ones at that?

Looking at the evidence, according to the National Grid’s director Cordi O’Harra, this winter’s supply margin is at 5.1% – 1% higher than this time last year and mainly down to the increase in

balancing reserve, while government taxes

have in the main remained static.

Accepted, Esos has been introduced this year but it is meant

to highlight energy savings

projects, so in the long run should be cost

neutral if not cost positive. Finally, power station

closures have been factored into the curve, as they have been well documented for years and new renewables plants such as biomass are helping to prevent a price bull run.

So what to do in your shoes? Given the lack of volatility in the market and the fact that prices are close to lows that have not been seen for quite a while I would seriously consider taking a fi xed price approach, with a difference.

Traditionally, under a fi xed arrangement, the whole portfolio went with one supplier, or one supplier for non-half hourly and another one for half-hourly. This old approach was premised on maximising buyer leverage,

a fl exible contract with the ability to lock and unlock.

Here’s my question, however. For an organisation on a fi xed contract, is there really any point going fl exible given the price levels we are seeing currently?

And for those who have already taken the journey, what is real advantage to being on a fl exible contract?

I wonder how many organisations have looked at the price levels when the fl exible contract started and are no better off – and in some cases worse off now – having been in a fl exible contract compared with the fi xed price they could have taken at the outset?

This may well be a very bitter pill to swallow and one that managers could fi nd hard to justify. After all, the work to justify this approach plus the ongoing daily market monitoring and analysis, to be only slightly better off,

5.1%The UK’s

supplymargin this winter


and the historical pain felt by multi-site customers when switching suppliers, so for years now customers have been looking to rationalise their supply base to make it easier to manage. However, the proliferation of specialist suppliers in recent years has undermined this rationale.

At BidEnergy, we take a approach that makes multi-supplier contracting easy. Sites up for tender join a monthly ‘event’ at which a diverse range of loads and customers go to market in the one place at the same time. This provides lots of accounts for suppliers to bid on. Buyers gain from the competitive dynamic, while suppliers can price the demand profi le that best suits their business model, with little marketing effort and the sure knowledge that the buyers are pre-

committed to going with the best offer on the day.

The process also provides assurance to the risk committee that the process is fair, above board and transparent – a kind of honest broker for good corporate governance.

A customer electing to go to market using the platform can have the tender under way in days, not weeks or months. The platform also manages the budgeting and payment process for fi xed and fl ex contracts all online, automatically validating bills and consolidating them into multi-supplier payment fi les for straight through processing.

Consequently, there really is no point in just choosing one supplier for the entire portfolio, unless that supplier is the best option for every site in your portfolio.

By looking at all contract and supplier options, it is possible to identify the least cost supply option for our customers in real time during the tendering process. That is, the fi nancial rewards for what we call ‘packaging’ in which the suppliers match their books to the parts of the customers’ portfolio that best suit them, are demonstrably better than a one-supplier alternative and provide a much more demanding baseline for fl ex alternatives than has traditionally been available.

We see this as the future of energy contracting in the UK, with customers currently achieving double-digit savings on their electricity and gas accounts, as well as gaining corporate-wide visibility on energy spend and footprint. te

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Buyers gain from the competitive dynamic, while suppliers can price the demand profile that best suits their business model, with little marketing eff ort and the sure knowledge that the buyers are pre- committed to going with the best off er


Flexibility services remain in the spotlight for businesses, after what was arguably a

move to centre stage in 2015. The timing is most probably

due to a natural evolution in the types of energy-saving processes that companies are adopting. Most have been working on reducing consumption for several years, so as cost-free and inexpensive options are exhausted, alternatives that provide incremental value become more interesting. Managing consumption flexibly can provide two-fold benefits to businesses: avoiding expensive peak cost periods and generating new revenues via scheme participation.

The current transition to a higher proportion of renewable generation has prompted significant activity from the industry and regulators, to ensure

20

Smart moves for smart firmsWhen it comes to energy efficiency, flexibility may now be the key, says Jan Hansen, head of flexibility services at DONG Energy

that the system is optimised. For example, we’ve seen National Grid launch Power Responsive – a collaborative initiative looking at how best to deliver balancing solutions at scale by 2020.

Ofgem’s Flexibility Study, published in September, reported that the current volume of business electricity managed flexibly constitutes a small amount of the potential volume available. So, although flexibility services have a raised profile, many companies are yet to fully embrace the concept. Several large organisations have managed load flexibly for several years, eg to avoid expensive peak triad periods. The sheer range of options now available can feel a little mind-boggling, even to the most savvy of energy professionals. With this in mind, we ran a flexibility workshop with a number of

our customers, as well as Decc and Ofgem, to understand a little more about the barriers to participation, as well as the part that innovation can play in resolving some of the issues.

Providing the right support to help businesses unlock flexibilityOne of the key issues that emerged was the perceived ‘hassle factor’ involved when it comes to making technical and operational changes within the business. Confusion over the options available, and concern over the risk of financial penalty are key factors. Added factors are the lack of ability to quantify the contribution to carbon targets and the ability to quantify the commercial value over other energy management schemes or initiatives.

Another significant challenge is the process of

GAS & ELECTRICITY

With so many practical considerations, businesses need a clear view of the financial value, in order to convince internal stakeholders that it is a worthwhile pursuit

Businesses need a much more robust and quantifiable case for flexible demand management if

they are to prioritise it

21theenergyst.com February/March 2016theenergyst.com

gaining internal sign off. Several parties are typically

involved in the decision on whether to participate in energy fl exibility, along with the subsequent execution, which can make internal stakeholder negotiation and sign off diffi cult to manage. Depending on the nature and age of equipment on-site, it can be diffi cult to turn consumption down or off as required, and some machinery better lends itself to remote switch-down devices than others.

With so many practical considerations, businesses need a clear view of the fi nancial value, in order to present this within their business and convince internal stakeholders that it is a worthwhile pursuit.

A further barrier remains the perceived commercial opportunity versus other, more obvious energy reduction projects, such as installation of LED lighting or energy effi cient machinery. Customers are concerned about the true potential value, some having experienced a fall in value in the Short Term Operating Reserve (STOR) market in the past for example, and the market is suffering from a lack of confi dence in quoted revenues.

Add to this perceived operational disruption, complex internal decision-making processes and a frequent disconnect between procurement or fi nance functions and operational functions. It then becomes clear why businesses need a much more robust and quantifi able case for fl exible demand management if they are to prioritise it.

At Dong Energy, our research and development function has been investing in technology to support energy fl exibility for several years. This work has culminated in our Power Hub technology, launched

in the UK last year, which addresses the ‘hassle factor’ identifi ed by customers during the workshop. It instantly combines real time market data with specifi c customer plant data to produce optimal run schedules. This helps business customers harness more value from their plant, without the need to dedicate huge quantities of time analysing volumes of data.

In addition, in February we launched Renewable Balancing Reserve. This is a commitment and penalty-free scheme that enables customers to help balance grid supply, and also create a new revenue stream by taking a share of the resulting savings. Unlike other similar schemes, customers can take part during any half hour period throughout the year. This supports those businesses whose fl exibility might typically be available outside of the usual winter peak period.

Renewable Balancing Reserve is intended to address some of the apprehension that has proven a barrier to participation in the likes of Demand Side Balancing Reserve (DSBR) or STOR. By removing fi nancial penalties and allowing customers to get involved when it suits them, the service eliminates the risk often associated with demand-side schemes.

Moving forwardFundamentally, we are all participants in the UK energy industry, be it from a regulatory, generation, supply, consumer, or third party perspective. To really address the so-called ‘trilemma’ of balancing affordability with sustainability and security of supply, it is essential that we collaborate, and by working more closely with customers, we can gain the insight required to develop new innovative solutions that the market needs. te

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The way Britain generates and uses electricity is rapidly changing. We could save on investment if we had a more fl exible electricity system.

More fl exibility can encourage customers to use electricity outside peak times and can help increase consumption when it’s needed. Overall the market will be more effi cient and innovative, and greater fl exibility will help to engage and empower energy consumers.

To get there, we need a regulatory system that supports fl exibility. Ofgem is focusing on fi ve priority areas, as part of a wider project with Decc.

Encouraging business customers to provide more demand-side responseIndustrial and commercial demand accounts for more than half of electricity demand at peak times. As you’ll have read in previous articles, some large users are already benefi tting fi nancially from being more fl exible in when they use electricity. Ofgem will work with them to show what opportunities arise from voluntarily offering demand-side response. And it will talk to businesses to understand their concerns and needs, working closely with National Grid’s Power Responsive campaign.

Aggregators coordinating businesses’ demand-side responseSome businesses have neither the time nor expertise to negotiate demand-side response contracts. Aggregators coordinate demand-side response

How can we make the electricity system more flexible?

offers from individual businesses, bridging the gap between consumers and energy companies.

There is no current regulatory defi nition of aggregators, setting out their role and interactions with other industry parties. Ofgem will work with aggregators and the industry to agree expectations for what they’ll do, and how these interactions work.

Other pieces of the flexibility package• A more active role

in managing power fl ows for distribution network operators with more distributed renewable generators and electricity storage.

• How regulation, charges and industry rules should change to refl ect the contribution and impacts of electricity storage.

• All of the above may result in changes to the charges for using the electricity distribution network.We want to make sure

we have the right building blocks in place for a more fl exible system. There will be plenty of opportunities for you to discuss these with us, especially when we publish our joint Call for Evidence consultation with Decc in spring. te

If you are interested in finding out more, contact the team at: [email protected]

VIEWPOINT

The secretary of state’s policy ‘reset’ message, in which she stated that renewable power

generators will be made to pay for their impact on the grid, was one area of concern highlighted to MPs last month.

Decc must be “careful to make sure that any changes that do come through … are implemented carefully to ensure that existing renewable assets don’t experience something that current investors would regard as


Act now or pay laterEnergy infrastructure investors have warned government against politically motivated short-termism and to think carefully about making changes to renewables incentives. They also want longer-term clarity, and more warning before established policies are culled. Brendan Coyne reports

being retrospective”, Octopus Investments co-founder Chris Hulatt told the Energy and Climate Change Committee’s Investor Confidence inquiry.

Meanwhile, moves to close the Renewables Obligation (RO) to onshore wind earlier than planned have all but killed the market, according to one investor. Carol Gould, head of power and renewables, Bank of Tokyo-Mitsubishi, said conversations with developers regarding new projects had fallen way by

95%. She added that investors had “probably not” anticipated the early closure of RO.

Fear factorMedia coverage of subsidy cuts also spooked institutional investors, according to Peter Dickson of Glennmont Partners. Prior to the policy ‘reset’ announcement, much of which was trailed in newspapers, conversations with investors had largely been concerned with procedural detail, such as

FINANCING ENERGY

“There is a concern that investments that have been made would be retroactively impacted by changes that occur in the future


how the RO worked and how certificates were traded, he told the Committee.

“In recent years the headlines – and I talk about headlines because it is a sentiment issue—started to express concern that the UK government is no longer backing the long-term support, the reduction of subsidies. So the questioning has become very much more politically oriented around the longevity of support: do we see that there is going to be any changes? Will there be retroactive changes?” he said.

“There is a concern that investments that have been made would be retroactively impacted by changes that occur in the future, and we spend now a very considerable amount of time [with investors] around that.”

Dickson said that while UK governance had a track record that inspired a “much higher degree of confidence” than other countries, investors had not previously expressed such concern about potential policy u-turns.

“For the first time since we started raising funds quite some time ago, we started getting questions directly around that and on specific instances: if it has occurred, if it is likely to occur. What does it mean that we are seeing the changes? What do the

individual announcements on individual policy measures actually mean on a larger scale? So that has become a considerably larger part of the discussions that we have with institutions.”

When the levy breaksHulatt cited the removal of Levy Exemption Certificates (LECs) with fewer than four weeks’ notice as an example of retrospective change – and that had negatively affected investors’ anticipated revenues.

Alejandro Ciruelos, project and acquisition finance – energy at Santander, agreed. He said that while the bank had anticipated that the LECs would be removed at some point, “the process itself was a bit sudden”.

Glennmont’s Peter Dickson said the suddenness had caused problems, creating a “disproportionate amount of attention on what occurred. I think had it been trialled for a period of time it would not have had nearly as much of an impact as it had when it disappeared so quickly”.

Drax and Infinis lost their bid to overturn the government’s decision to axe LECs in the High Court in February.

The two firms had challenged the decision, outlined in George Osborne’s

What government should do now

July Budget, on the basis that only 24 days’ notice had been given. The court acknowledged that the removal of LECs was sudden and unheralded. However, it concluded that the government had not provided any specific and clear assurances on the continuation of exemptions and accordingly ruled in its favour.

Mid-term outlookThe investors urged government to provide clarity on the future of the contracts for difference (CfD) regime and for some transparency on the workings of the Levy

Control Framework (LCF). An indication of the government’s intentions for renewable energy targets post 2020 would also help investors make decisions, which usually worked within five to seven year cycles, they told MPs.

Failure to provide such clarity would lead to a higher cost of capital, which would ultimately feed back into wholesale power prices. “The longer we delay investing in the longer term the costs of dealing with short-term problems will increase,” warned Donald McDonald, chair of the Institutional Investors Group on Climate Change. “It will shove up prices.” te

Storage and demand side response policyChris Hulatt said policy detail on creating energy storage and demand side response markets had been “conspicuous by its absence”, despite the sector being “ready for things to start happening”.

National Grid’s enhanced frequency response tender – which will pay companies with battery assets to respond in under a second to grid frequency fluctuations – was a “good start”, said Hulatt. However, he called for policymakers and regulators to make rule changes that allow “storage to be co-located with generation like solar farms, for example, in a way that does not impact on the qualification of that renewable asset for the FIT or the ROC”.

There was “no doubt” that energy storage, and thereby demand response, were “going to make a difference to the world’s electricity framework”, said Hulatt. “It is a sector where there is a widespread level of interest around the world, and something that the UK should be exploring seriously.”

According to Matthew Knight, Siemens director of energy strategy and government affairs, Decc must stop trying to be all things to all people and get a balanced generation portfolio built. It should also publish a rolling annual view on the direction of travel, he suggested.

“Government needs to work closely with industry to build a long-term consensus view of which way we are going,” he told the committee. “Decc scenarios, which have been published over the last few years, have tried to be all things to all people. For example, in

offshore wind we had one scenario in 2014 that said we could build about 35 gigawatts by 2030. In another scenario, published on the same day, it said there might be 1 gigawatt in the whole of the 2020s. That is useless,” said Knight.

“We know 80% of what the electricity mix is likely and ought to be in 2020, and probably anybody from the nuclear industry to the solar industry could agree on 80% of that. However, it is characterised as an argument over the 100% when we could just get on,” he continued.

“We know we are going to need

some CCGTs. We know we are going to need some offshore wind. I would love there to be some more onshore wind in Scotland. All of these things we could be getting on with while we finesse the future, and that is why a rolling forward view, published every year by Decc, endorsed by the Treasury and by the National Infrastructure Commission, and embraced by the whole industry, would say to us, ‘Broadly, that is the direction of travel.’ That would create more jobs in the supply chain than anything else. Nobody is after certainty, but just clarity of direction allows investment.”

Global energy prices have soared 260% since 2000, with world energy

consumption projected to rise 30% by 2020. The rising cost of energy, coupled with an upsurge in climate change regulation following the landmark COP agreement in December 2015, is causing critical concern for executives across all industries.

For CFOs and other decision makers holding the company purse strings, the quest to streamline operations and cut costs and carbon emissions has never been more urgent. Their best option is to implement effective energy efficiency initiatives and emissions mitigation techniques as part of the overall corporate strategy.

How do you get CFOs interested in energy management and energy efficiency? The answer of course is in the word ‘efficiency’. Yet many CFOs still see energy management as an area beyond their remit. If your aim is to generate interest among finance heads to drive energy management as a strategic objective, then you want to be able to communicate and deliberate on the need to prioritise it.

Let’s start with a quick analysis of the global energy situation:• The Global Energy Outlook

2014, which forecasts energy trends for the coming 20 years, projects that energy consumption is set to increase by 41% by 2035

• Almost all (95%) of this increase is to come from non-OECD countries


No go without your CFOGet your CFO on board to challenge rising energy costs – Andy Dewis, VP energy and sustainability services, Schneider Electric explains

• Rapid industrialisation in growing economies, large scale urbanisation and growth of services are expected to drive the increase in energy consumption

• While fossil fuels remain dominant, renewable energy is showing signs of rapid growth, though from a much smaller base

• Most of Europe and Asia remain net importers of energy, although total global growth in energy production almost equals consumption growth, maintaining overall balance of demand and supply

• Global carbon reduction goals are set at an 80% reduction by 2050, driven by a number of fiscal mechanisms. Namely, a focus on embedding a cost of carbon benefit into energy efficiency and renewable activities. This future cost of carbon coupled with rising energy costs means that medium term financial planning is more important than ever, as we currently see a disconnect in investment in fossil fuel- intensive activity which could lead to stranded investments in future

So how does a business go about evolving a strategy and corporate culture shift to

include energy management, sustainability and efficiency objectives? It begins by first acknowledging that those components are an opportunity for renewed prosperity and growth.

Sustainability = opportunityThe promise of energy efficiency to help improve profitability is a big reason that CEOs are embracing sustainability. In fact, 93% of CEOs see sustainability as an essential part of their business success, according to the Carbon Disclosure Project survey in the S&P 500 Climate Change Report 2013. In the financial services industry, this same report indicates that 65% of executives believe that energy saving and sustainability objectives provide a strategic business advantage.

The foundation of a successful energy management programme hinges upon energy efficiency, environmental sustainability, and continuous corporate improvement. Three must-have steps include:• Step 1: Define the strategy –

An actionable strategy needs sensible time and resources committed to it, along with high-level executive buy-in and commitment

• Step 2: Deliver efficiency – Make sure to create a strategy focused on delivering measurable efficiency improvements, which will help prioritise and fund potential energy efficiency projects

• Step 3: Sustain the results – Continuous improvement is key to ensuring that programmes and projects support the mission,

achieve sustainable results and provide additional energy and carbon reduction opportunities

What is the CFO’s role in this? The CFO is expected to partner the business in driving its strategy. Operational efficiency is a critical part of any business strategy. When business performance indicators for operational efficiency are set up, material, manpower, energy and overheads are the main elements. While energy prices cannot be controlled by consumers, usage most definitely can be.

Too many benefits to ignoreEnergy management offers strong potential for improving operational efficiency.

The difference in energy consumption between the average company and the best in class can range from 30% to 75% depending on industry. This is achieved by leveraging existing assets through smart technology and human intervention to optimise energy consumption according to need. The trick for the CFO is finding robust ways to align the financial business case with operational activity in order to demonstrate and continuously invest in results.

When we talk about how energy management can completely change the game in recurring cost, it generates interest among the finance heads. They like to know what is possible and at what stages of planning they must get involved, to make the right decisions and make an impact on long-term efficiency. te

schneider-electric.co.uk

FINANCING ENERGY

Many CFOs still see energy management as an area beyond their remit

We would like to hear from you, contact us at:

10 John Street, London WC1N2EB

07341 666575

[email protected]

www.bidenergy.com

Energy cost reduction delivered

The UKAS-approved certifying auditor at certification body NQA said he

was overwhelming happy to recommend Cheltenham College for ISO50001 and that it was the “best Stage 2 [final] external audit he had ever seen”.

Like more than 10,000 other large organisations across the country, the college was faced with complying with Esos by 15 December, 2015. However, in consultation with Get Smarter Energy (GSE), instead of opting to go down the short-term Esos ‘survey, audit, report, recommend’ compliance route, the college chose to spend about the same amount of money on the longer-term, more strategic route of satisfying Esos by getting certified to ISO50001.

The choice was made easy for the college because GSE has been providing it qith broad energy management


First independent college to achieve ISO50001Cheltenham College is setting the pace for energy management in the independent education sector by gaining BS EN ISO ISO50001:2011 Energy Management System accreditation at the first attempt

and savings (share) service for the more than two years – from competitive energy supply contract procurement through to investing £100,000 in a sophisticated buildings and energy management system for the college through its sister company Smart Carbon Control (SCC) at no investment cost to the college.

This solid energy management and savings platform provided by GSE and SCC already addressed many of the core requirements of ISO50001, such as energy consumption tracking across the college’s 64 electric and gas meters and 23 main buildings and provided the college with the spring-board and framework (and the confidence) to embark on IS050001 and integrate remaining elements.

To deliver the ISO50001 for the college, GSE engaged and was ably assisted by

management systems consultancy Blackmores, which initially conducted a ‘gap analysis’ to identify the remaining elements to be put in place and formalised for ISO50001.

In close collaboration with the college, GSE and Blackmores developed and implemented a project plan using NQA for the obligatory stages 1 (interim) and 2 (final) inspections, which worked with the college’s busy in-term and out of term academic, maintenance and extra-curricular activities and availability of staff.

This ISO50001 programme was conducted through the summer and autumn of 2015, as planned, resulting in a first time pass, with no major or minor mandatory corrective actions required, in good time for the college to receive its ISO50001 certification and register the fact on the Environment Agency

CERTIFICATION

Their investment has really helped the college moderate its energy consumption through the provision of efficient control and monitoring systems

theenergyst.com

Esos web-site well before the 5 December deadline.

Steve Meeks, chairman of SCC and GSE, commented: “We have been working with Stephen Friling [finance bursar at the College] and his team at Cheltenham College for three years now. GSE and Cheltenham College signed a five-year energy procurement and energy savings agreement in October 2012 and during 2013 GSE, in conjunction with SCC, invested over £100,000 permanently installing energy monitoring and management equipment on the site at no cost to the college.

“The Energy Management Portal went live on 1 December 2013 and in the two years to the end of November 2015 has achieved savings against the base year of over 3.75 million kWh, worth over £138,000.”

Friling commented: “SCC and GSE made a bit of a leap of faith with their business model, by investing a significant amount of their capital in our infrastructure with no guarantee of return.

“However, their investment has really helped the college moderate its energy consumption through the provision of efficient control and monitoring systems. We even gained the added benefit of being able to reduce what used to be a day and a half ’s job, to switch all of the college’s heating systems on, to less than an hour. We have been delighted with the partnership arrangement and it made obtaining ISO50001 accreditation far more attainable – particularly so with the support provided by Blackmores. I only wish we had discovered SCC and GSE sooner.”

Mel Blackmore, managing director of Blackmores, commented: “We were

delighted to work in collaboration with Cheltenham College and SCC in pioneering a leading energy management system compliant to ISO 50001 in the education sector. Significant energy savings will be derived over the coming years as a result of implementing a robust system for managing energy resources more efficiently. Achieving ISO 50001 certification shall not only reduce Cheltenham College’s environmental footprint, but will also provide tangible results to support the delivery of its sustainability strategy.”

But the story does not stop there. As part of GSE’s five-

year agreement with the college, GSE

continues to manage its energy supply contracts and the internet-based SCC platform

provide the year-to-

year energy reporting and energy

performance indicators foundation and continuity required by ISO50001, as well as directly delivering significant energy savings and other efficiencies through its remote buildings and plant rooms management and control functionality.

ISO50001 encourages and requires a ‘plan, do, check, act’ cycle of continual improvement ,and the GSE services and SCC platform provides the ideal support framework for the college to develop energy policy, strategy and energy action plans, communicate and publicise energy awareness (both within and outside the college), implement savings, monitor and report energy performance, review and move on in readiness for yearly ISO50001 inspections, subsequent ISO50001 re-certification and the next Esos deadline in 2019. te

getsmarterenergy.com

3.75mSavings in kWh

achieved by the Energy Management Portal

since going live

theenergyst.com

Sponsored column

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RENEWABLE ENERGY

The growth and impact of solar power in the past five years in the UK has been nothing

short of remarkable – from humble beginnings of 25MWp in 2010, to an installed capacity of 12GWp by March 2016. It may surprise readers to learn that in 2015 cloudy Britain was the fifth largest market for solar power globally.

Falling product and installation costs (85% reduction in five years) along with a growing appetite from investors for a technology that is predictable, low in maintenance and has a zero fuel cost, have helped solar mature to become one of the cheapest forms of renewable generation.

Many leading businesses have already turned to solar as a means of future-proofing their energy bills through private wire power purchase agreements (PPA). Bentley Motors, Tata Steel, BT and Hanson Cement all now benefit from discounted power from solar parks located on or near their sites of high energy demand.

To date these projects have required subsidy to make the business case viable.

Subsidy debateSince the advent of a new government, the solar industry has been caught up in the wider subsidy debate and has seen large cuts to FiT rates, as well as the removal of the ROC’s mechanism. As a result, many companies have shelved their plans to invest in onsite solar generation.

However, the business case for private wire PPAs for major energy users remains – even

Renewables without the risk?Even in a subsidy-free environment, Lightsource can raise all of the project finance for projects, so there is no capex or development risk involved for businesses just offsite green energy at grid prices

without subsidy support. In 2016, it is already possible

to supply power from utility-scale solar installations to the MEU sector cheaper than the cost of grid purchased power.

It is anticipated that non-commodity charges will become the largest proportion of the cost of delivered electricity. These charges are forecasted to rise steadily during the next decade as transmission, distribution costs rise and the impact of various government schemes are passed on to consumer bills.

By installing a utility-scale installation and connecting it behind the meter, many of the charges levied on grid purchased power can be avoided. A typical non-

subsidised solar project starting development today can result in savings of 10% from construction in 2017, rising to 20% by the end of the decade.

In order to deliver power at a cost below grid purchased power you need to build at scale and at the lowest cost of construction. This means that utility scale ground-mount solar located off-site is often the best option for those looking to hedge a portion of their site consumption against a rising market and increasing non-commodity costs.

Lightsource’s approach is to bring renewable power to businesses from an off-site location. We will finance, develop and operate the solar farm on your behalf. This means businesses will benefit from low cost, low carbon, locally generated electricity with no operational risk and with no capital investment.

Business incentivesIn addition to these savings, there is an opportunity for HM Treasury to further incentivise businesses to adopt

It is already possible to supply power from utility-scale solar installations to the MEU sector cheaper than the cost of grid purchased power

decentralised, renewable generation. They could do so by clarifying whether the power generated by such PPA projects can be off-set against demand for CRC reporting, now that subsidy for solar has effectively been withdrawn. The opportunity to do this would be as part of the current consultation on the energy efficiency tax landscape.

It is clear pressure is mounting on the government to provide a cohesive plan for the future of UK energy and

many are predicting that solar energy

will spearhead a technology-led revolution.

The recent KPMG report commissioned by Energy

UK – based on interviews with

23 companies from across the UK energy

industry (including all of the ‘Big Six’) – calls for a series of policy interventions and an end to the sudden changes seen since the last election.

The report sets out a vision for an energy system that is less reliant on baseload generation; one that is more flexible, more decentralised and much more consumer-oriented.

Perhaps most telling from the report is that when asked which sources of electricity will be playing a larger role by 2030, their top pick is solar. While the national debate on the UK landscape is likely to rumble on for some time, there is currently a prime opportunity for MEUs to be at the forefront of the renewable revolution. te

lightsource-re.co.uk

Solar is predicted to play a greater role in the future

10%Typical savings from

a non-subsidised solar project


REG Bio-Power (REG) has now spent more than a year successfully

producing carbon-neutral power from used cooking oil at its first-of-its-kind, 18MW site, with the help of Finning UK & Ireland, sole distributor of Caterpillar engines in the UK.

The site in Whitemoor, North Yorkshire, uses 10 Finning Cat 3516 BHD engines to produce 18MW of power. The engines are fuelled with used cooking oil, which is collected by REG from restaurants, food processing plants and household waste recycling centres in partnership with local councils and waste contractors.

After being collected, the used oil is taken to a REG recovery facility in Thetford where it is filtered into a proprietary biofuel called LF100. Just one litre of used cooking oil can be turned into fuel able to provide enough renewable electricity to make 240 cups of tea, and one full tank can produce enough power to run the average home for an entire year. The Thetford site proceses 18,000 tonnes per year.

Once the biofuel has been produced it is transported

When the chips are down...REG has been using used cooking-oil to power Finning generators and access National Grid’s STOR prgramme, solving a waste problem by generating power and making money

to REG’s Whitemoor facility where it is burned in Cat engines, providing renewable, carbon neutral energy to the National Grid.

“While the engines supplied by Finning are standard, off-the-shelf units, the fuel system is specially designed,” says Mark Radford, project manager at Finning.

STOR concerns“Reliability is also a major concern for REG as the Whitemoor site has been contracted to supply the UK’s Short-Term Operating Reserve (STOR) programme, which is designed to supply the National Grid with enough power to cope with unexpected spikes in demand.”

The Whitemoor site itself is unmanned most of the time, with the control system being remotely managed by Finning. When the generators need to be started up Finning engineers can run them from a central control room and let REG know that the operation was successful.

Once a call comes in from the National Grid that power from the site is needed, the Finning operators need to have the generators running at full load in just four minutes. The engines need to start on demand and must also go off load at a set time, or REG may be subject to penalties.

The Whitemoor site has been supported by Finning engineers right from the start, who assisted REG with its planning and environmental compliance. Finning has also agreed an operation and maintenance contract with REG that will last until 2022, covering not just the engines but also the site’s boilers, pumps and high voltage equipment.

Whitemoor became operational in November 2014 and since then has operated for 220 hours from 120 STOR programme starts. The caterpillar engine does not need to be reconfigured to accept biofuel and trials and experience reveal that there has been no complaints about noise or smell in the vicinity of

the sites. Regarding operation and maintenance Finning require that the operator enters into aseven to eight-year contract to make it viable.

If an engine does need servicing at a time when the STOR contract must be honoured redcuing the 10x1.8MW capability then the other nine are able to be run at higher than the nominal load attaining 2.0MW and thus still achieving 18MW total.

The Whitemoor site follows sucesses at two other sites – Blackwater and Leeds – and a further three will be developed, two sites consisting of 19.8MW and a 14MW site. te

finning.co.uk/powersystems

A slick operation: the Whitmore site

One full tank can produce enough power to run the average home for an entire year

Consumers and shareholders are keen to see organisations get

better at benchmarking their sustainability initiatives. Governments are also establishing more reporting requirements, which will inevitably multiply through initiatives such as the recent Sustainable Innovation Forum at COP21.

No matter how you look at it, the call for climate action is coming in surround sound. More than 50% of customers prefer sustainable brands and are more likely to trust a company that reports corporate social responsibility results.

From regulators to investors, consumers and employees – right the way through to the stock exchange – stakeholders have been asking companies to measure and disclose performance. The result is that integrated


How to get ahead in sustainability reportingWhen it comes to sustainability, transparency is the obvious answer, says Toby Crewe, director – sustainability solutions at Schneider Electric

reporting is going mainstream.Sustainability programmes

and reporting boost consumer confidence, shareholder esteem and a company’s bottom line. Sports company Asics was grappling with timely collection and consolidation of its global sustainability data as it managed significant business growth particularly into retail operations. It didn’t have a centralised tracking system so collating metric conversions and formats of energy and water use and audit data was a challenge. We helped the company by delivering consulting, software and implementation services.

Reporting processes and data access improved dramatically, saving resources and allowing analysis and continuous enhancement of open and transparent reporting further down into the supply chain.

However, many companies are failing to capitalise on these

benefits simply because they don’t have the expertise and tools to capture and report progress on their sustainability goals. Even companies that want to operate more transparently often struggle with collecting and wrangling sustainability data, which is typically scattered across different silos and platforms.

According to research firm Verdantix, organisations have adopted more than 2,500 unique metrics for use in sustainability reports, which gives a sense of scale to the challenge facing companies.

Companies can develop effective sustainability reporting strategies using the following steps:

1. Create a roadmapA roadmap should show how your sustainability reporting will function. For example, you might first set out expectations for governance,

SUSTAINABILITY

As much as 50% of potential efficiency improvements are low- to no-cost

Schneider Electric delivers consulting, software and implementation services

theenergyst.com

shareholder engagement and disclosure. Then look at your expectations for performance in the following areas:

• Operations• Supply chain• Transportation and logistics• Products and services• Employees

2. Identify key players and develop a governance structureIdentify the data owners of your sustainability programme and establish communication pathways between them and the sustainability team. Bring in site contacts and enterprise stakeholders to make sure they buy into the goals. Short conversations up front can save signifi cant time chasing information later.

3. Develop accountability structuresThis is a framework not unlike an organisational chart in that it shows the different groups involved in reporting. It includes an outline of the roles and responsibilities of each group, and describes the processes, people and supports necessary to function effectively. Accountability structures provide clarity, organisation and communication.

4. Leverage technologyThe right systems allow you to house various data points from all owners in one place. Rather than manually inputting data from a variety of sources, which is time intensive and error prone, implement a SaaS (software as a service) cloud-based solution. That way, data can be more easily analysed and acted upon. This platform should also offer drill-down capability into single-site, interval-level data to fi nd ineffi ciencies that can be hidden in monthly reports.

5. Identify the quickest ROI opportunitiesUse analytics to identify

projects with low up-front investments that can result in positive results over a relatively short period of time. Examples include an understanding of the leading and lagging site performers within your real-estate portfolio, or an immediate opportunity to reduce carbon emissions. As much as 50% of potential effi ciency improvements are low- to no-cost.

6. Communicate successesShare success stories with stakeholders and highlight the value of what has been accomplished, as well as challenges the company needs to address. Sustainability communications will only deliver brand value if they are based on brand strategy and integrated with mainstream communication.

7. Continually assess and refineExamine where your strategy is performing well and expand upon those aspects. Then refi ne (or discard) the tactics that are showing less success. Outside of your team, industry experts can fi ll gaps to drive effi ciency and improve performance. Reporting strategies should be assessed on a regular basis, integrated with feedback from internal and external stakeholders.

8. Create a sustainable culture — from the top downCompanies that see signifi cant returns on their environmental initiatives recruit a diverse roster of employees who have one thing in common: an appreciation for the climate challenge and a passion for action. That starts all the way at the apex, with the board of directors. For a company operating in the 21st century, the risks and opportunities a board considers must include environmental and social issues. te

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COMMERCIAL HEATING

One of the many things that energy managers are no strangers to is

regulatory change, particularly in relation to energy efficiency and environmental impact. In the case of space heating products, there were some changes through the Ecodesign of Energy Related Products (ErP) Directive that took effect last year, and there are a few more to come.

Clearly any such changes can be perceived as a bit of nuisance but they also bring benefits – not just to the environment but also in terms of reduced energy bills and carbon taxes. They fact that the ErP also seeks to reduce emissions of nitrogen oxide gases (NOx) also underpins sustainability policies and ‘green’ credentials.

The ErP DirectiveApologies to those who are already familiar with this directive but a quick overview is useful to provide context.

The ErP Directive comprises both the Ecodesign and Ecolabelling requirements for energy-related products. However, the Ecolabelling aspects do not apply to the higher capacity heating products that are typically used in the commercial and industrial sectors.

Ecodesign has a number of sections, known as ‘Lots’, each of which covers certain types of product.

Much of the recent attention has been on Lots 1 and 2, which came into

Preparing for changeEuropean regulations relating to energy efficiency will have an impact on the selection of space heating products during the next few years. Phil Brompton provides an overview of the changes to come with particular reference to factories, warehouses and other ‘shed’ type buildings

force in September 2015. Lot 1 covers the Ecodesign requirements for space heaters and combination heaters, which refers to boilers up to 400 kW operating on gas and oil fuels. Lot 2 relates to water heaters and storage tanks up to 400kW input or 2000 litres capacity.

Looking further ahead, Lot 21 covers air heating products (warm air heaters) with a rated heat output up to 1MW, as well as cooling products up to 2MW, fan coil units and high temperature process chillers.

With regard to warm air heaters, from 1 January 2018, these will be required to have a seasonal space heating energy efficiency of not less than 72%, rising to 78% from 1 January 2021.

There will also be stricter requirements relating to NOx levels from 26 September 2018, as follows:

• Warm air heaters using gaseous fuels: maximum NOx 100 mg/kWh fuel input GCV (gross calorific value)

• Warm air heaters using liquid fuels: maximum NOx 180 mg/kWh fuel input GCV From 1 January 2021,

maximum permissible NOx levels will fall to:• Warm air heaters

using gaseous fuels: maximum NOx 70 mg/kWh fuel input GCV

• Warm air heaters using liquid fuels: maximum NOx 150 mg/kWh fuel input GCV Similarly, the requirements

for radiant tube heaters, covered under Lot 20, will change from 1 January 2018 (this applies to commercial local space heaters with a nominal heat output of the product or of a single segment of 120 kW or less). These will be expected to deliver a seasonal space heating

From 1 January 2018, warm air heaters will be required to have a seasonal space heating energy efficiency of not less than 72%, rising to 78% from 1 January 2021

used scheme for quantifying the ‘green’ credentials of a building. Credits are awarded for various categories and the total corresponds to a BREEAM rating from Unclassified (<30) to Outstanding (>85). A high score can make the difference in being awarded planning permission or not.

For warm air heaters, BREEAM encourages the use of automatic temperature control and zone temperature sensors where units supply heat to multiple areas. Reducing NOx emission levels to ≤40 mg/kWh generates three credits and ≤70 mg/kWh generates two credits for building types other than industrial. For industrial buildings, up to two credits are awarded for achieving ≤70 mg/kWh in the office and in operational areas.

Clearly there is still some time before the new regulations come into force, but when budgeting for future planned plant replacement it is useful to know what’s on the horizon. Taking advantage of the most efficient heating and control technologies is clearly the best way to achieve maximum financial and environmental benefits. te

powrmatic.co.uk

Phil Brompton is managing director of Powrmatic


energy efficiency of not less than 74%, with NOx levels not exceeding 200 mg/kWh input based on GCV.

Seasonal performanceOne of the key points in these regulations is that the efficiency figures refer to seasonal space heating efficiency.

As a result, compliant heaters will need to perform efficiently at all heating loads. This is achieved partly by using modulating or two-stage burners, rather than on/off, so that the heaters can respond to changing demands for heat. Efficient heating controls should also be used to optimise part-load performance.

Maintaining efficiency with variable heat loads also becomes increasingly important as the thermal performance of buildings improves. Lower heat losses means set-point temperatures are reached more quickly, after which the heating system performs at part-load.

Moreover, it is important to ensure that the products have an inherently efficient design. In the case of direct-fired warm air space heaters, it will be necessary to use condensing models to meet the new performance requirements.

In fact, condensing warm air space heaters have been

available for several years and tested in a wide range of applications using either natural gas or liquefied propane gas (LPG). As with condensing boilers, the use of a secondary heat exchanger results in slightly higher cost compared to non-condensing units.

It will also be necessary to incorporate a condensate removal. In new installations this can be designed in from the start and will have a low impact on installation costs. In a retrofit situation the need for additional condensate pipework will make the project a little more complex – reflected in a slightly higher cost. Nevertheless, upgrading

to more efficient heating plant will save money over the lifetime of the units.

Additional energy savings can be achieved through measures such as using some recirculated air, rather than full fresh air (~15% saving), and installing destratification fans ~10% saving).

BREEAM While the ERP Directive sets the minimum standard for efficiency and emissions levels, there are advantages in voluntarily pushing the boundaries. BREEAM (Building Research Establishment Environmental Assessment Methodology – www.breeam.com) is a widely

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Powrmatic’s new MC 300 ‘Multi’ digital controller enables the control of multiple numbers of cabinet and unit air heaters


COMMERCIAL HEATING

District heating networks have been identified as having a key

role to play in both the UK’s carbon reduction strategy and the European heating and cooling plan. Yet if they are to fulfil their potential they need to be lean on energy consumption. To achieve this they must operate with low system temperatures – considerably lower than traditional design practice.

Such systems need to be designed to address a number of important criteria if they are to optimise efficiency and deliver maximum benefits. Many of these criteria are highlighted in the CIBSE publication Heat Networks: Code of Practice for the UK (2015), which recognises that low system temperatures are essential.

So where does the responsibility lie for ensuring that heat networks are designed to deliver optimum efficiency? According to CIBSE, it lies with the engineer that designs the system and the building owner/operator.

The code states: “Achieving low return temperatures starts with correct selection and balancing of radiators and other heat emitters within the building, which is often the responsibility of the building owner and designer and not the heat network owner/operator.”

CIBSE currently recommends flow and return

How low can you go with heat networks?Heat networks require low system temperatures if they are to deliver efficient operation. Silas Flytkjaer of SAV Systems highlights the importance of effective temperature and pressure control in achieving this

temperatures to radiator systems of maximum 70°C/40°C, to improve efficiency, compared to the more traditional 81°C/72°C of conventional single-dwelling boilers.

However, evidence shows that efficiencies will be further improved by going even lower – so anyone involved in the specification of such systems should be asking: “How low can we go?”

International Energy Agency (IEA) studies based

on long-term measurement show the network heat loss in a low temperature network can be approximately 25% of that in a conventional medium temperature network (defined as 80°C/40°C).

This underlines the technical and economic feasibility of low temperature heat networks.

For example, two residential district heating schemes in Denmark, operating with flow/return water temperatures of 55°C/35°C, have each seen a fall in heat losses from the distribution network of about 75% due to lower system temperatures and improved pipework insulation.

Such low temperatures also increase the efficiency of condensing boilers and facilitate use of low carbon heating technologies such as heat pumps, which operate at lower temperatures.

Whether the design aims for 70°C/40°C or 55°C/35°C, achieving and maintaining these low system temperatures requires excellent control throughout the system. This includes control at the heat interface units (HIUs) serving each space and the adjustable valves within the spaces, such as thermostatic radiator valves (TRVs).

Proper variable volume system controls help to maintain a high differential between flow and return temperatures, ensuring that return temperatures remain low under part load conditions, while

The FlatStation heat interface unit incorporates differential pressure control valves in both the heating and hot water circuit supply lines. These respond dynamically to peaks and troughs in pressure, maintaining a constant pressure differential

that can be pre-set to the required flow rate. This will prevent any single radiator acting as a system bypass.

Additionally, it will minimise the ‘installation risk’ of poor balancing during

installation and reduce labour cost

significantly by eliminating the need for traditional balancing.

A further benefit is

that less water circulates through

the heating system, so the performance of

the heating circuit pump is optimised, adding to the energy savings. Noise issues with the heating system are also eliminated.

It is probably true to say that ‘perfect’ control of each system element is rarely achievable but it is possible to get close to this nirvana by addressing these issues and incorporating appropriate pressure and temperature control in the system. The key is to adopt a holistic design process and ‘think low’ when it comes to system temperatures. te

sav-systems.com

Silas Flytkjaer is product manager for Danfoss FlatStations at SAV Systems


also reducing the energy consumed by pumps.

However, variable-speed pumping will result in varying pressures at different points of the system, such as at the HIUs and TRVs.

Too often, attempts to compensate for these variables result in high system temperatures, low temperature differential (Delta T), unmanaged pressure variations in the system and compromised performance.

Control at the HIUOne part of the answer is to include differential pressure control valves (DPCVs) within the HIUs, in both the heating and hot water circuit supply lines respectively. DPCVs respond dynamically to peaks and troughs in pressure, maintaining a constant pressure differential and enabling the two-port control valves to operate as designed while maintaining the right balance of the heat network.

Incorporating effective temperature and pressure control in the HIU is critica, not only for domestic hot water comfort purposes but also to maintain low system return temperatures. While the most common data on HIUs show performance at full load and static conditions, these numbers are not as interesting as they look.

What is important is the performance at part load and dynamic load conditions, as these are much more reflective of real life situations. Domestic hot water heat exchangers in HIUs should be able to hold a DHW flow temperature within +/-2°C while keeping return system water below 25°C at dynamic load conditions. If your supplier cannot document this, perhaps it is time to start looking for alternatives.

Control at the TRVIt is equally important to ensure effective control of radiator circuits – as indicated earlier, standard TRVs are not designed to function with variable pressures. Some mitigation can be achieved by using HIUs to provide hydraulic separation between the space being heated and the heat network or a dedicated DPCV.

However, this is not fully effective as the return water temperature of the heat network distribution system is still dependent on the return temperatures from the heated spaces.

A key issue here is that if a radiator is not controlled properly it may become an unintentional bypass. One unintended bypass in the system can lead to elevated return water temperatures

and poor control of differential pressure.

The inevitable result is uneven heat distribution through the system, resulting in an overall reduction in efficiency of the entire heat network. Poor performance can be further compounded by adjustments to TRVs made by occupiers (or facilities managers) making the situation even more complex.

A more satisfactory solution is to ensure that the TRVs are both pressure-compensated and temperature-compensated, using integral differential pressure control to ensure that only the required flow passes through each radiator. This provides a responsive system where radiator circuits are dynamically balanced with the correct flow rate in both full and part load conditions – irrespective of pressure variations from the variable speed pump or changing demand conditions from individual rooms/spaces.

Such TRVs should be designed to operate with low flow rates and incorporate integral adjustable apertures

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25%Heat loss in a low

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COMMERCIAL HEATING

During the past few years we have seen a considerable resurgence in the

popularity of district heating, not least as part of the UK’s carbon reduction strategy.

Clearly when such systems are used it is important to ensure they deliver maximum efficiency. There have certainly been some disappointing district heating schemes in the past but this has usually been the result of non-optimal system design.

The key to optimising design is to adopt a whole system approach, considering not just the efficiency of the central plant but also the other elements of the system. In the majority of cases this will also involve integrating different heating technologies and

Paying close attention to heating efficiencyAchieving optimum performance in heat networks requires close attention to every aspect of the system design. Geoff Lord of Hoval explains

water are typically controlled, and possibly metered, by heat interface units (HIUs) within each of the spaces. This is relatively straightforward and well-designed HIUs are able to adjust to variable demand from different spaces.

Where more than one building is involved there can be considerable variation between the temperatures and pressures required by each building, especially when a number of different building types are included.

In such cases, each building needs to be fitted with a sub-station that is capable of converting the hot water temperatures and pressures provided by the energy centre to the operating conditions required by the building. Each sub-station

The key to optimising design is to adopt a whole system approach, considering not just the efficiency of the central plant but also the other elements of the system

ensuring they work in harmony. Beyond the plant room,

as is made clear in the CIBSE/ADE Heat Networks Code of Practice, the management of hot water flow rates and flow and return temperatures is also critical.

The majority of district heating systems currently being installed serve single, multi-occupancy buildings or relatively small groups of buildings from a central plant room. Many of these schemes use combined heat and power (CHP) to generate both heat and electricity, often backed up by other heat sources that can include biomass boilers, gas or oil fired boilers, heat pumps and solar thermal.

In the case of individual multi-occupancy buildings, space heating and domestic hot

The TopTronic system is able to serve the district heating networks with real time

visualisation, observation and optimisation


heat exchangers feeding into stainless steel buffer vessels should be considered, potentially pre-heated by solar thermal or heat pumps.

With such a diverse mix of heat sources the controls will play a major role in preventing conflicts between the different types of plant. It is therefore important to use controls that

are capable of managing single or multiple conventional and low carbon heat sources, with functionality such as real-time monitoring and visualisation.

The important thing is that with any district heating system served

by a multi-source energy centre, it is essential to ensure that all of the systems work efficiently together and that hot water temperatures and pressures are properly controlled at each building.

A holistic approach to system design and the use of compatible components within the system is the way to deliver the best solution. te

hoval.co.uk

Geoff Lord is national technical sales manager with Hoval

Fläkt Woods, makers of ventilation and air movement products, is set to showcase the JMh aerofoil fan range at this year’s FoodEx exhibition, on stand S298. Visitors are invited to meet the Fläkt Woods’ team at the show, which is being held on April 18-20 at the NEC in Birmingham, and will give the opportunity to see the JMh range close up.

Andy Milkins, industrial sales director at Fläkt Woods, stated: “A highly efficient and effective ventilation system will ensure that all process requirements such as heating, cooling, chilling and filtration are met, as well as maintaining the essential comfort levels for occupants – meeting health and safety requirements

“At this year’s FoodEx, visitors will be able to view a plate mounted and short cased fan, which are particularly suited to OEM equipment providers and restricted space installations. The JMh range includes the long cased version that is commonly built into complete systems in refurbishments or new builds.”

Fläkt Woods’ JMh aerofoil

fan not only tackles health and safety issues, but also meets high the levels of corrosion resistance and hygiene levels required by the industry.

The range uses the proven Fläkt Woods aerofoil technology to ensure the legal efficiency levels are met by incorporating dedicated impeller blade designs with an aerodynamically optimised hub design that enables the fan to deliver high efficiencies of up to 77%. This results in low specific fan powers meaning compliance with the latest ErP regulations, therefore installed running costs are minimised – significantly reducing running costs and carbon dioxide emissions, the company claims.

flaktwoods.co.uk

Fläkt Woods takes stand at FoodEx 2016

It’s a wonderful world, let’s keep it that way.

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will typically comprise a plate heat exchanger, pumps and heat meters – ideally in a compact packaged configuration to minimise plant room space requirements.

In the energy centre itself it is essential that the various types of heating plant are controlled to take advantage of the performance characteristics of each. For example, the CHP unit could be sized on its heat output to achieve a constant base load throughout the year, with the power generated being used onsite, exported to the grid or both. Then a biomass boiler could also be added to accommodate the increased base load as the heating systems are switched on during colder periods.

However, it is also important to make provision for peak loads with heat sources that are highly responsive and efficient at variable heating loads while maintaining constant flow temperatures. An obvious solution is to incorporate fully modulating gas or oil boilers.

If the energy centre is also producing domestic hot water then minimum storage high output calorifiers or plate

Hoval TransTherm heat transfer station provides

efficient and reliable distribution of heat

At any one time, in the majority of organisations, financial decision-

makers will be presented with opportunities to invest capital in a range of projects. The projects that receive funding are typically those that are backed by a sound business case presented in language that is familiar to financial managers.

Unfortunately, it is not uncommon for good, technically viable energy-saving proposals to fall by the wayside through lack of a convincing business case. Often these projects make commercial sense but are simply not presented in the right way. The chief financial officers wants a financial return on capital employed and while the sustainability and carbon reduction benefits are important, if the business case isn’t packaged correctly then it simply won’t be considered for funding.

Look beyond paybackThe proposals should look beyond a simple payback. It is likely your financial team will be looking for internal rate of return (IRR), return on capital employed (ROCE) or net present values (NPV). Understanding which metrics are measured and what information they require will increase the chances of gaining funding.

For example, in searching for ‘quick fixes’ within property portfolios that have already been subject to a range of energy-saving measures,


Packaging the business case for energy efficiencyThere is often a noticeable difference between identification of energy-saving opportunities and their approval for implementation. Alan O’Brien explains why a sound business case can bridge the gap

many organisations are turning to trusted and proven retrofit technologies. Given the contribution heating makes to commercial energy consumption and carbon emissions, application of such technologies is often in the boiler house.

When retrofit boiler load controls are installed, the primary financial benefit is a reduction in gas consumption. However, when reduced carbon tax costs are considered, the business case becomes even more compelling - both from a payback and a return on investment (ROI) point of view.

Consequently, the energy efficiency project may deliver a better internal rate of return (IRR) than other projects within the organisation. Once the financial team and board see this (in their language) it will be hard for them not to allocate the budget and prioritise the project.

On an extensive estate it can

often help a business case to verify the level of savings from the energy efficiency initiative before rolling out across the entire building portfolio. In this way, the expected level of savings can be predicted with confidence, which strengthens the case for further investment.

When Durham County Council was considering investment in M2G boiler load optimisation, it initially carried out a measurement and verification project across seven sites. This enabled the council to demonstrate reductions in gas consumption of about 7% could be accurately predicted, with a forecast payback period of just 0.9 years.

Measurement and verification planTo ensure the energy savings identified by such projects have credibility in the eyes of the finance team it is good practice to invest time in a measurement and verification plan. One

area to focus on is how the savings are being measured and exactly what is being reported as an energy-saving.

A good example of this is when energy consumption is being compared between two different periods – for instance the gas consumption of heating plant in two consecutive winters. Here, it is essential to take account of temperature variation within those periods by adjusting the data using Degree Day information supplied by the Meteorological Office.

Understanding what the technology does is also important. If a retrofit boiler control reduces the time the boiler runs, this isn’t necessarily the same as an energy saving. Where a modulating or on/off burner is present simply considering run-time does not indicate whether the boiler was firing at full or part capacity. Gas or oil consumption is the key metric in such cases.

These issues are easily addressed by adhering to the criteria established within the International Performance Measurement and Verification Protocol (IPMVP).

Crucially, any technology provider that you consider working with should be pro-actively highlighting these considerations and able to assist with the project planning, the measurement and verification and the creation of a compelling business case. te

sabien-tech.co.uk

Alan O’Brien is CEO of Sabien

COMMERCIAL HEATING

Sabien’s M2G boiler load optimisation

control prevents boiler dry cycling


When St Catharine’s College, located in the centre of

Cambridge, was faced with ageing boilers that needed parts replacing it decided to embark on a heating system upgrade.

After taking advice from its neighbours at King’s College, which had also installed Hamworthy Wessex ModuMax boilers, St Catherine’s College chose to install the same.

Phil Dean, clerk of works at the college, commented: “We knew the boilers were going to need changing in the near future to provide us with better operating efficiencies. It made good economic sense to upgrade now rather than spend money on new parts for the older, inefficient boilers.

“The previous boilers were Hamworthy Lulworth L10 (1050kW) steel boilers. The other plant rooms at the college feature Hamworthy

Top of the classSt Catharine’s College opted for Hamworthy Boilers when it needed a system upgrade

products so we

wanted to be consistent

across the site for the ease of

maintenance and familiarity with a product.”

Robin Bunton of Bunton M&E Services has worked with the college for many years. He selected and installed the equipment, which included three vertically stacking Wessex ModuMax boilers and factory assembled pipe kits.

A total of nine modules providing 1980kW output deliver the heating for

nearly all of the college. Two 1000 litre Powerstock Calorifiers connected to the boilers provide an indirect hot water solution.

Three months prior to the boilers being installed Bunton fitted eight MagnaClean Magnetic Filters to help clean the old system of dirt and debris in order to protect the new boilers and improve the efficiency of the system. The new pipework for the heating system was fabricated offsite by Bunton M&E to speed up installation on site.

Since changing the boilers the college has seen a

significant amount of energy savings in a relatively short period of time. The Wessex ModuMax boilers are using very little gas and so far the college has seen a 25% reduction in gas bills.

Wessex ModuMax boilers are extremely compact and efficient. They weigh less than 1kg per KW output and achieve the highest rating for low NOx emissions – European Class 5 performance.

In this instance, the 660kW gas-fired boiler uses three 220kW modules stacked one above the other to accurately match the building load requirements. They feature a fully modulating pre-mix burner and standing losses at less than 1%.

Dean concluded: “The vertically stacking boilers save space in the plant room making it easier to get round the boiler for service and maintenance. Plus Hamworthy Heating has a continued commitment to spare parts; making them readily available for a long time.” te

hamworthy-heating.com

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Three vertically stacking Wessex ModuMax boilers were installed

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the installation

Chatham is the world’s most complete example of a dockyard from

the Age of Sail, rich in naval tradition and British heritage.

For 400 years, Chatham Dockyard played a vital role supporting the Royal Navy, building, repairing and manning ships to secure and maintain Britain’s command of the oceans and the global position the country holds today. From the Spanish Armada to the Falklands Crisis, ships such as HMS Victory, Nelson’s famous flagship at the Battle of Trafalgar, were built, repaired and manned from Chatham. So when, in 1984, the Royal Navy ended its association with Chatham, the Georgian Yard was set aside for preservation as the Historic Dockyard under the stewardship of Chatham Historic Dockyard Trust.

Preserving the pastFast forward 30 years and the Historic Dockyard is a thriving mixed-use community, welcoming 180,000 visitors a year its historic buildings, museum galleries, historic warships and events, and housing 140 commercial tenants who rent many of its buildings.

In addition to sharing the influential maritime history of Chatham Historic Dockyard, a core objective for the trust is to secure the conservation and long-term use of the 100 listed buildings in its safekeeping.

The trust has achieved this in part by adapting the use of appropriate buildings through sensitive renovation projects, encouraging occupation to


Making heating shipshapeChatham Historic Dockyard in Kent, one of Britain’s most treasured heritage sites, has achieved energy-efficient, reliable heating for three of its most important buildings with Remeha high-efficiency boilers

help breathe new life into these historic buildings and prevent them from falling into disrepair and disuse with regular repair and maintenance.

Three such buildings are the Sail & Colour Loft, the Royal Dockyard Church and the Admiral’s Offices, all scheduled ancient monuments, the UK’s oldest form of heritage protection.

Chatham Historic Dockyard Trust is an independent charitable trust, reliant on the help of charitable donations to carry out its work. So when it identified the need to upgrade and replace the heating provision at each of these important buildings as part of wider restoration work, it was keen to implement a practical, cost-effective solution to achieve the required heating efficiency and reduction in fuel bills.

Working in association with PCS Consulting Services, the trust chose to retrofit Remeha boilers as the affordable, effective solution to more reliable, energy-saving heating.

Heritage challengesThe first building to be refurbished was the Sail & Colour Loft, one of the earliest surviving buildings at the dockyard.

This Grade I-listed building was originally used to make and repair the sails of ships built and repaired at Chatham. The sails for HMS Victory were almost certainly made here – as were the flags flown to send Nelson’s famous signal at the Trafalgar: “England Expects Every Man to Do His Duty.”

Today this building is being transformed into new higher-education learning facilities for use by the University of Kent. To meet the trust’s requirement for high-performance, energy-saving heating at Sail & Colour Loft, PCS Consulting Services specified two Remeha Quinta Pro 115 condensing boilers installed in a cascade configuration.

Installing multiple boilers on cascade systems is an efficient means of retrofitting

COMMERCIAL HEATING

A core objective for the trust is to secure the conservation and long-term use of the 100 listed buildings in its safekeeping

»

Aerial view of Chatham Historic Dockyard

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Indoor air quality is important for health. High CO2 levels reduce alertness, efficiency and cause fatigue. Modern climate control systems monitor CO2 levels and regulate ventilation, reducing energy costs. Rotronic CO2 devices provide precise measurements. www.rotronic.co.uk

University, Leeds Lecture theatre

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Ideal room comfort is achieved as the optimum amount of water is supplied to the end devices

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COMMERCIAL HEATING

condensing boilers as it enables more accurate matching of the heat demand, thereby reducing energy costs and delivering more reliable heating. It also proved to be a flexible and space-saving heating solution at the Sail & Colour Loft, which meant that installation was quick and easy,.

Adam Rawlinson, chartered engineer at PCS Consulting Services, explained: “The Remeha Quinta Pro boilers are extremely compact, so this gave us more flexibility and options

in terms of plant room design. In addition, as the cascade is prefabricated and preconfigured off site, the contractor Amdell Mechanical, was able to install it quickly and easily, which helped keep any disruption on site to a minimum.”

Small dimensionsThe second refurbishment project was at the Royal Dockyard Church, formerly the naval church at Chatham Dockyard and today a large lecture and conference centre occupied by the University of Kent, seating up to 400 people.

As the existing boiler provision was inadequate, a key consideration for the Trust was to achieve increased output in a space-saving solution. PCS Consulting Services recommended

retrofitting a Remeha Gas 210 Eco Pro high-efficiency condensing boiler to achieve high output in a fraction of the space of the original boiler.

Installed by contractor Norton Mechanical, the Remeha boiler was connected onto the existing pipework, which had been well maintained over the years.

“The Remeha Gas 210 Eco Pro boiler has a very small footprint,” said Rawlinson, “which meant it fitted nicely into the plant room, allowing plenty of space to be made available to accommodate a further boiler if needed in the future, as requested by the trust.”

Under controlThe third plant room requiring attention was at The Admiral’s Offices. Originally constructed for naval purposes, this early office concept designed around central spine layout is now home to a number of businesses including solicitors, ship operators, management consultants and architects.

Contractor Norton Mechanical removed the existing, failing boiler and installed two Remeha Gas 210 Eco Pro boilers in its place, connecting to a new low loss header, a dirt and air separator, and onto the existing pipework.

Every product, no matter how sophisticated, requires adequate

control in order to operate at its maximum efficiency.

For this reason, Rawlinson was particularly impressed by the internal controls on the Remeha boilers.

“The internal controls and internal weather compensation curve feature on the Remeha Gas 210 Eco Pro boilers proved really useful in this project,” he said, “allowing the two boilers to make full use of their fully modulating features and sharing the duty between them so that the boilers run efficiently and reliably at all times, increasing their lifespan.”

Sustainable futureChatham Historic Dockyard Trust has been delighted with the heating refurbishments, which have played a key part in helping preserve these historic buildings for future use.

With the heating at these three key buildings now ultra- shipshape, thanks to the five new Remeha boilers, the trust is looking forward to more reliable heating for its tenants in the years ahead.

With the added benefits of rapid savings from reduced energy consumption and a lower carbon footprint, the Remeha boilers have successfully delivered a win-win outcome for one of our most treasured heritage sites. te

remeha.co.uk

The two boilers make use of their fully modulating features and sharing the duty between them so that the boilers run efficiently and reliably at all times, increasing their lifespan

Below left: The Royal Dockyard Church. Below right: Remeha Gas 210 Eco Pro high-efficiency condensing boiler

THE CONSULTANTS AND CONTRACTORS CHOICE.For further information or to receive a technical guide tel: 0208 783 3050 or email: [email protected]

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The Belimo products Energy Valve and the room controller CR24-B1 were

used in a Macedonian pilot project in Skopje for the determination of the energy efficiency of buildings. The experimental set-up at the Institute of Forestry was able to demonstrate that, with the implementation of meaningful renovation measures, the consumption of primary energy could be reduced by 20% by 2020 in comparison with the expectations projected for 2007 — as outlined by the 2012/27/EU Directive. Due to the Belimo Energy Valve also the current energy consumption values and the optimisation potential of the system are known at all times.

Initial situationIn addition to forestry subjects, the Institute at the St Cyril and Methodius University also performs research on aspects of environmental and energy efficiency. In the case of this pilot project, the intention was to investigate potential heating energy savings in the Institute’s own building. The basis for the experimental set-up was the international standard ISO 50001:2011, which describes systems and processes for

improving energy efficiency.

Project requirementsTwo points were defined as conditions:• Energy consumption can

be analysed and regulated in accordance with work conditions (working hours, working days, room temperature etc)

• The energy consumption of the current month is known at all times, in contrast to the retrospective invoice data of the operator

Belimo solutionThese customer requirements correspond exactly to the features of the Belimo Energy Valve. It measures, regulates, balances and saves all measurement values. Because a web server is integrated in the valve actuator, the data can be viewed and analysed for a period of 13 months through any Internet connection with the Belimo Energy Valve Tool. The 2-way control valve that was previously used in the primary part of the heat supply facility was therefore replaced with the Belimo Energy Valve in the DN65 dimension.

The valve is controlled with a room controller CR24-B1 (master controller with PI response) that is installed in a reference room. The nominal room temperature

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theenergyst.com

of 21°C was lowered to 16°C on weekdays after 3pm and on weekends. From 7 February to the end of April 2013, the Energy Valve then used sensors to continuously measure, balance and control the flow and temperature values in the supply and return lines. Through this it was possible to analyse where and how much energy was being used in the heating system. The optimisation potential was quickly determined: using energy according to actual requirements rather than assumptions.

Customer benefit• The optimisation of the

heating periods and temperatures with the aid of the Belimo Energy Valve led to energy savings of ≥ 30%, as could be seen on the invoices of the local heating supplier (Balkan Energy Group BEG)

• The specifications of the EU Directive 2012/27/EU were fulfilled

• The customer has transparent energy consumption values at his

disposal at all times and can project budgeting for the coming heating season

• Installation of the Belimo Energy Valve and the room controller CR24-B1 is possible with a manageable technical outlay. After three months, the evaluation of the energy consumption values revealed considerably improved economic efficiency for the converted heating system. See graph above

Customer satisfactionAfter the heating period was over, the experimental results achieved with the Energy Valve at the Institute of Forestry were analysed and presented to the university’s management. Their expectations were exceeded. Vice-Rector Prof. Dr Nikola Vasilevski emphasised that the use of modern, energy efficient technologies was of great value for his facility. Based on this pilot project, the budgeting of a project is now being planned that involves the equipping of all 22 Institutes with Belimo Energy Valves. te

belimo.co.uk

Energy efficiency through transparent system monitoring

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Sponsored column

There are a number of contributory factors that can cause ‘fully modulating’ boilers to dry and short cycle. Tony Willis, technical director with Sabien Technology, discusses the issues

There is sometimes a perception that fully modulating boilers are not subject to the inherent issue of wasteful boiler dry and short cycling, in the same way that non-modulating, high-low fired boilers are.

All boilers, including fully modulating boilers, will suffer from ‘standing losses’. This can cause the boiler set point temperature to drop so that the boiler re-fires when there is no genuine requirement for further heat to meet the building load. This condition is known as ‘dry cycling’, which causes unnecessary energy use and costs.

To improve boiler efficiency, there has been a drive to employ fully modulating boilers. In theory a modulating boiler will always meet and track a variable boiler load and never turn off. Therefore it will not allow the boiler to dry/short cycle. However, there are number of conditions that will limit the boiler from modulating during part-load conditions.

The performance of a modulating boiler is determined by the ‘turn down’ ratio of the burner and the current load applied to the boiler. It is quite common that modern modulating boilers will have a turn down ratio of 5 to 1; in other words high fire is 100% of the boiler kW output and low fire would be 20% of the boiler output. For example, if the boiler was rated at 200kW the minimum boiler output capacity would be 40kW.

Building/ boiler loads will change dynamically according to the weather/ hot water requirements etc. If the above example is used and the current system load is less

than 40kW, the modulating boiler is not able meet this part-load condition without turning on/off and cause the boiler to cycle.

Other factors that can affect the performance of modulating boilers are due to an improvement of the overall building efficiency. Typically boiler plant is designed to meet the worst case scenario regarding building load and over time the boiler/s can become over-capacity for the current building conditions. 80% of boiler plant is over capacity and therefore can cause ‘part-load’ boiler inefficiencies.

For some of the reasons given, it is very rare that fully modulating boilers operate as intended or designed and can suffer from the same issues as standard non-modulating boilers.

The solution is to deploy retrofit boiler load optimisation controls such as Sabien’s M2G, which will work in harmony with existing controls to prevent boiler dry/ short cycling and reduce energy consumption. The M2G will constantly and dynamically measure the individual boiler load under all conditions, if this is on a fully modulating boiler the M2G will operate during part-loads only and will identify when the boiler is firing unnecessary.

M2G will typically deliver a payback in less than 18 months and requires no servicing, maintenance or continued commissioning and is offered with a five-year warranty.

Further information: www.sabien-tech.co.uk

Delivering further efficiencies from fully modulating boilers

Now that the mad rush to the Esos compliance deadline has passed, Keith

Brierley, environment and business – senior advisor to the Environment Agency, gave a useful romp through the facts and figures from the first phase of Esos and an overview of EA activity over the next few months.

For the first Esos compliance period (ended 5 December 2015) the EA’s planning assumption was that about 10,000 participants would be required to take part in the scheme. This figure is likely to be revised down in the light of the notification data received in the first phase of the scheme.

By 29 January (the end of discretionary period for enforcement) the EA had received about 6,000 notifications of compliance, 1,000 notifications of intent to comply and approximately 800 ‘do not qualify’ notifications. These notifications cover more than 40,000 UK business entities, reflecting the point that Esos covers corporate groups.

Enforcement riskAn estimated 2,000 organisations have yet to indicate their qualification status. These organisations are now at risk of enforcement action and will be investigated by the scheme regulators in the coming months.

A programme of sample audits of submitted notifications is now under way with a compliance auditing programme targeting a cross-section of up to 45 participants before the end of


Keep calm and make Esos countAudit and enforcement feature strongly in what happens next with Esos but so does the message to make the most of the identified energy savings opportunities. Paul Spencer, technical editing and publications, UKAEE provides an update from this year’s AGM

March. The team of auditors employed by the EA for this task are all from an energy audit background. In parallel, initial enforcement steps targeting the estimated 2,000 so-called ‘Freeriders’ who have yet to indicate their qualification status is also in process.

What’s clear is that those who should in theory have complied but didn’t will certainly be hearing from the EA sometime soon. Although perhaps not as severe as criminal sanctions that threatened non-compliance with the Carbon Reduction Commitment Energy Efficiency Scheme, civil penalties and ‘naming and shaming’ may not sit well with organisations that have actively avoided participation. On top of the

possible fines received, if silence implies inaction, being not fully focused on energy savings within their own operations will most certainly mean missed opportunities to drive down unnecessary energy and fuel spend.

Spirit of the schemeWhile compliance and the dreaded audit regime is a key, Brierley also emphasised audits will have a focus on getting a sense of how well (if any) cases are being made to directors on implementing the energy efficiency measures identified. Although not an enforceable requirement of the scheme, it perhaps sums up the spirit of what was intended. Rather than being just another ticking-the-box exercise with reports shelved and dusted off again at the next compliance deadline, the scheme could encourage companies to realise significant benefits from the energy savings to be made.

Support and guidance to assist in maximising energy savings opportunities is available for free from gov.uk. For example, a Decc implementation guide published in January being one tool that Brierley highlighted provides useful advise on how to build the energy savings

VIEWPOINT

business case and where you can get help to finance certain measures. The report is available at: https://www.gov.uk/government/publications/a-guide-to-implementing-energy-savings-opportunities

The role of the energy manager or sustainability professional will be key in any organisation to realising the savings opportunities that are certainly emerging from Esos. The UKAEE – a fast growing chapter of the international AEE – is set up to support such professionals and its membership continues to grow. As well as providing a route to lead assessor status through the AEE’s internationally recognised Certified Energy Manager (CEM) or Certified Energy Auditor (CEA) qualifications, the UKAEE chapter and wider AEE family, provides a burgeoning network of like-minded professionals to share best practice, learn from other approaches in different parts of the world and ongoing technical seminars and CPD opportunities.

The UKAEE AGM 2016 culminated in the signing up of a new and expanded committee for 2016 with a board of 20 now voted in to represent the growing membership base of 646 members. This is a significant increase from the 400 signed up by the time of last year’s AGM. The intention is for the membership to grow even faster in the coming year. te

For those that work in an energy savings related role, membership is still currently free. See more details at ukaee.org.uk

Civil penalties and ‘naming and shaming’ may not sit well with organisations that have actively avoided participation


Very few buildings are run with energy efficiency as the prime driver

– after core business of course. Energy management is often lumped in with FM, waste management, cleaning, sustainability and other activities which actually conflict with sound energy management. Take maintenance, for example, whereby plant and equipment is used well beyond its accounting life resulting in poor performance, breakdowns and additional cost rather than biting the bullet and replacing it. Similarly how many maintenance programmes are driven with energy efficiency as the prime consideration?

Energy management is massively influenced by finance. Whether it’s related to market commodity costs, infrastructural needs or equipping facilities with “state of the art” plant, systems, lighting and more the concerns are over:• Making cost reductions• Return on investment• Availability of capital• Avoiding thinking

about life cycle costsThis provides several

potential areas where the government may usefully intervene (lite) to encourage energy efficiency.

Eight things government should do to boost energy efficiencyAs the Treasury reviews business energy taxes and the National Infrastructure Commission looks at making energy efficiency a national priority, respected energy consultant Mervyn Bowden has a few pointers on how light-touch government intervention could deliver rapid results

What can inform the revolution?I’d identify a number of key measures – mostly financial but some managerial – which would help:1. Make energy efficiency a

tax-deductible activity. Any expenditure on efficiency schemes, R&D, monitoring and metering systems should be given a simple relief from Corporation Tax. This could even include the cost of energy management itself.

2. Measures should encourage, rather than purely incentivise, greater efficiency. Who needs subsidies when ROI’s can top 50% pa?

3. Penalties from schemes like Esos, whatever is chosen as the future demand side option, should be recycled into training, and licensing, qualified energy managers.

4. Perhaps a system of ‘energy efficiency capital credits’ as a levy on I&C energy bills to artificially inflate the cost of energy and make efficiency more financially worthwhile. The credits could be used, perhaps through energy suppliers with services arms, to pay for energy efficiency work. Either way, a mechanism which rewards. efficiency simply and quickly

5. Replace the Enhanced Capital Allowance scheme with one or more of the above.

6. Set tangible targets for energy reduction and make it mandatory to

have an auditable energy management plan covering perhaps five years forward setting out potential savings and the cost to achieve them. This would be of far more practical use than the woollier aspects of Esos and could be incorporated into ISO50001 easily.

7. Mandate landlords immediately to sub-meter tenants on a retrospective basis. Landlords are some of the biggest energy suppliers, to their tenants, and don’t suffer the degree of regulation applied to primary energy suppliers – perhaps they should.

8. Finally, I would link energy efficiency to business rates much as vehicle tax is linked to emissions.

Marketing the benefits?Taking some of the grander aspirations of COP21, it surely isn’t sensible for a nation’s flagship energy efficiency scheme to quote the benefits of saving 0.7%, as Decc does.

What about 40% or even 50% over a defined and manageable timescale with structured guidance, and incentives, for getting there? And extend throughout SMEs.

What a difference a 50% cut in energy costs would make to most businesses – it won’t come from the supply side so has to come from a radical and persistent approach to reducing demand. Let us hope the government’s current review drives an accelerating efficiency agenda – soon. te

A more detailed version of this article features in the new 2016 Director’s Energy Report. To download vist theenergyst.com

I would link energy efficiency to business rates much as vehicle tax is linked to emissions

ENERGY EFFICIENCY


LIGHTING

Quality lighting in loading and unloading zones is essential for

safety, quality control and productivity, ensuring your team can perform at any time of the day or night, in all seasons and weather conditions.

Much has been said about the lifespan of LEDs, and by now most consumers are aware of the dependability and energy saving qualities of solid state LED chip technology. The lifespan of LED chips has led to an increased demand for, and availability of, complete luminaire solutions – units with fixed light emitting components that cannot be removed.

Lighting maintenance is a costly affair, especially when units like flood lights often require specialist equipment for repairs access. This no-maintenance nature is a key contributor when considering overall return on investment when installing quality LED lighting products: the savings made far outweigh initial set-up costs.

So, how do you select

Lightening the loading bayNetLED gives a brief guide to loading bay lighting

the right lights for use above shutter doors and to illuminate forecourts?

A flood light is the obvious choice for lighting large areas from height – ideal for such applications. Flood lights are available in a number of wattage variations, making them a versatile choice for different mounting heights and desired levels of illumination.

Choosing units with an IP rating of at least 65 is an essential consideration.

A quality driver is also essential when purchasing LED flood lights. Drivers manufactured by reputable brands like Mean Well and Philips are robust and reliable, resulting in no flicker or hum and instant on-off cycle capabilities. Quality

components can extend the useful life expectancy of an LED flood light to more than 50,000 working hours.

Another important consideration when lighting loading bay applications is utility lighting. IP65 rated bulkhead or wall pack-style units wall-mounted at about head height are useful for illuminating walkways, under awnings and to highlight important areas that are outside of areas covered by flood lighting.

Additional lighting control options like photocells and microwave motion sensors often available with these products provide flexible control over operational aspects of units, allowing businesses to select an option

that works around schedules and times of high traffic. Similarly, some flood lights can be controlled by integral or detachable PIR motion sensor.

Choosing the best lighting for your loading bay is a decision that should be based on more than just product specification. While ensuring products meet requirements for your operation, and come with an ample warranty, checking the integrity of your supplier is an indicator of the quality in product and service you will receive. Look out for RoHS and WEEE compliance on a supplier’s products and processes. This lets you know a supplier takes environmental responsibilities seriously. ISO 9001 and ISO 14001 are are assurances that a potential supplier has quality management systems in place to deliver superior products and services.

When installing or replacing loading bay lighting, make sure you strongly consider LED luminaires as reliability, longevity and saving energy is a good way to go. te

netled.co.uk

DANLERS Limited, Vincients Road, Chippenham, Wiltshire, SN14 6NQ Email: [email protected] Fax: 01249 443388 www.danlers.co.uk

ControlZAPP®

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

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50 theenergyst.com

Tamlite Lighting claims its British-made MODLED LG PRO LED panel uses 56% less energy compared with traditional fluorescents.

Designed for offices, the firm says its clever design provides precise optical control of the light distribution, minimising glare.

Tamlite claims the panel delivers more than 56% in energy savings compared with the existing T8 HF installs, and 51% savings compared with the T5. It has an efficiency of 107 lm/W, with a 50,000-hour lifespan, according to the firm.

The range provides a number of colour options depending on the application: a comfortable, cool-white light (5000K), a neutral

white (4000K) and a warm white (3000K). Crucially, to eliminate glare, it has been engineered with a Tamlite I-Tech diffuser optic to achieve a UGR (unified glare rating) of less than 19.

Tamlite says LED technology makes the MODLED LG PRO inherently energy efficient, but the long lifespan and energy-saving potential of the product can be further extended with additional VISION lighting control options.

There is also a version available for emergency lighting, and DALI compatibility allows the light to be easily dimmed and controlled via the Tridonic ‘ready2mains’ system.

tamlite.co.uk

February/March 2016

LIGHTING

Dim, yet smart

Helvar says its new hybrid dimming range would suit classrooms and auditoriums where good quality dimming is required from 0-100%.

Hybrid dimming-capable products are dimmed in two different ways. For higher dimming ranges of 20-100%, constant current reduction (CCR) dimming is used, and for lower dimming ranges below 20%, pulse width modulation (PWM) is used.

CCR is an efficient technique for products dimmed above 20% but on lower ranges this type of dimming can have a negative impact on the

light quality by causing uneven light output or colour temperature variation. To complement this, high frequency PWM provides the best light quality between 1% and 20% and prevents change of light colour, says Helvar.

All new Helvar DALI drivers include

these hybrid dimming capabilities. The new LED driver LL1x110-E-DA has enhanced dimming performance with a promised lifetime of 55,000 hours. On 20%-100% range, CCR dimming is used and the PWM dimming on the 1%-20% range has been improved. Now on the 10%-20% range, the PWM frequency is 8 kHz and on the 1%-10% range the frequency grows

gradually from 1 kHz to 8 kHz. This technology ensures high quality of light in full dimming range of 1%-100%.

The range will be launched at Light & Building 2016.

helvar.com/products/hybrid-dimming

Ridi Lighting has brightened up the library at Invicta Grammar School in Maidstone, Kent. The special project team at Spectral used Ridi Lighting’s H-Line system and Spectral’s Iris fittings throughout the newly built space to create a light, bright learning environment for the students.

“We are delighted with the results here at Invicta,” commented Ridi Lighting boss Mike Attard. “Good lighting improves productivity and can aid learning, vital for children’s education. The RIDI and Spectral luminaires also add an artistic flair to the library.”

Ridi claims H-line adds versatility and design freedom to linear lighting systems. Delivered to site as a ready to install product, LED modules were fitted and wired

with preinstalled sensors and emergency lighting. Modules were fitted for direct and indirect lighting with micro-prismatic diffusers used for the direct light. In certain areas, versions included track modules so that multi-point Karoled spotlights could be fitted.

Iris is now made with dual-sided LED boards and the unobtrusive circular construction draws the eye through, enhancing the architecture of the library without taking away focus, says Ridi. From just 32 watts, the luminaire delivers 3,360 lumens, equating to 105 lumens per watt. Its CRI rating of 85+ ensures a comfortable light level for reading, group work and study.

ridi.co.uk

LED ‘gives offices 56% energy reduction compared with fluorescents’ This makes good reading


Back in November, in her energy policy statement, energy secretary Amber

Rudd said: “One of the best ways to cut bills and carbon is to cut energy use itself. That is why energy efficiency is so important. For businesses, energy efficiency can reduce costs, which in turn improves productivity and competitiveness.”

In January, Decc published a Guide to Implementing Energy Saving Opportunities, in time for organisations to review the outcomes of their Esos audits, implement the recommendations and embed effective energy management practices into their operations.

Savings potentialThe greatest potential for energy efficiency is unsurprisingly within the most energy-intensive sectors such as manufacturing, iron and steel, chemicals, cement, food and drink, oil refining and glass.

At the Energy Institute International Petroleum Week in February, Bob Dudley, group chief executive, BP, underlined the importance of improved process efficiency in responding to climate change challenges and meeting COP21 targets.

For some organisations, Esos has exposed a lack of company-wide energy management strategy and onsite energy awareness. Behaviour change remains an area where big transformations can be made.

For this reason, the Energy Institute has facilitated a closer collaboration between behavioural

Esos – what happens next? The official deadline for submissions to the Energy Savings Opportunity Scheme (Esos) has now passed with reports that 60% of qualifying organisations have complied. However, the work should not stop there, comments Energy Institute chief executive Louise Kingham

psychologists and energy management professionals.

Earlier this year, these two disciplines came together at the first in a series of EI workshops to discuss the approaches to behaviour change – from identifying goals and motivations, establishing effective measures for lasting change, to recognising champions and reviewing which types of messages and framing are most successful.

In general, personalised energy-use feedback is found to be an effective tool for changing behaviour. Sharing the result of their Esos audits with their staff team might therefore encourage organisations to implement energy efficiency as part of a broader organisational approach. Co-benefits such as comfortable working environments and reduced costs also provide strong incentives to change energy-use behaviour.

Barriers to implementationProhibitive upfront costs with unknown payback periods are a common, and crucial, barrier to implementing successful energy efficiency measures.

In terms of investment, organisations have three main funding options – company finance, offsetting expenses against anticipated cost savings, and third party finance. A report by the Energy Efficiency Financial Institutions Group, Energy Efficiency – the first fuel for the EU economy (2015), points to the lack of standardisation in the development and documentation of energy efficiency projects as a major stumbling block to

accessing this third party investment. This is because every project is different.

Investor confidenceThe Investor Confidence Project aims to help with increased standardisation (and therefore investment) by working with banks and financial institutions to develop standardised protocols and proposals for underwriting energy efficiency projects. These protocols are not about inventing new standards, but are intended to normalise the process and format of the documentation.

In response to calls for less complexity in reporting and taxation of energy use, the UK government launched a Business Energy Tax Review last summer, which places particular focus on simplifying the framework and tax regime for energy efficiency.

An announcement regarding the next stage of this review is anticipated on 16 March as part of the UK Budget. Regardless of future directions in energy policy, it makes good business sense for companies to take action to reduce their energy usage.

Complying with Esos should not be about ticking a box, but about identifying real opportunities to save money. It is a win-win situation – reducing energy consumption increases productivity and profits, and can unlock investment. Moreover, it supports the overall need to develop the low carbon energy system that will provide a more sustainable environment for all. te

energyinst.org

Prohibitive upfront costs with unknown payback periods are a common, and crucial, barrier to implementing successful energy efficiency measures

VIEWPOINT

The biennial co-located events Drives & Controls, Fluid Power & Systems,

Plant and Asset Management, European Offshore Energy and Air-Tech Exhibitions take place at the NEC Birmingham from 12-14 April alongside MACH 2016 and National Electronics Week 2016.

The free 2016 seminar and conference programme running alongside the co-located exhibitions will be taken to a new level, adding significant value with a more comprehensive speaker programme than ever before and a strong emphasis on technology, entrepreneurship, skills, regulations, the environment and safety.

At a time when engineers are under increasing pressure, and time out of the office to attend exhibitions needs to be balanced against heavy workloads, one growing justification is attending a well-balanced and focused seminar programme where gaining further industry knowledge is at the core.

Drives & Controls Seminar TheatreRunning alongside the Drives & Controls Exhibition will be the free Drives & Controls Seminar Theatre, which will bring together all aspects of robotics and automation, energy efficiency, machine safety, drives, motion control, legislation, system strategies and technological developments.

Featuring representatives from across industry including government


Save and prosperThe largest manufacturing and engineering events of 2016 collectively take place at the NEC Birmingham’ from 12-14 April, offering a full programme of free seminars with speakers offering insight and practical advice on topical issues

agencies, the EU, research bodies, trade associations and manufacturers, the Drives & Controls conference programme will focus on practical solutions to real-life industry requirements.

For example, Gambica’s Steve Brambley will be presenting a seminar on future trends – circular economy, Industry 4.0 and EcoDesign, and a panel discussion on trends in the industrial automation sector and what are the influencing factors.

Other highlights include: ‘Optimising Energy Consumption in motor driven systems’, by Steve Schofield of the BPMA, and a seminar on ‘Driving the future of robotics’ by Graham Mackrell, Harmonic Drive.

UK MTC will also be giving a presentation on ‘Industry 4.0 and the reality

for UK industry’, while Dr Scott Steedman of BSI will be presenting a seminar on ‘Technical Standards & the EU in-out referendum’.

Maintenance Seminar TheatreComplementing Plant & Asset Management 2016 will be a full programme of free technical seminars in the Maintenance Seminar Theatre, sponsored by Shell Lubricants, with speakers offering expert insight and practical advice on important and topical issues concerning today’s maintenance professionals.

The free Plant & Asset Management 2016 seminars will include sessions on: ‘Improving maintenance: how a combination of condition monitoring technology and international standards can help’; ‘The convergence of

EVENT NEWS

The free 2016 seminar and conference programme running alongside the co-located exhibitions will be taken to a new level

»


EVENT NEWS

calibration activities with maintenance inspections to drive efficiency’; and ‘Steam trap management’.

Fluid Power & Air Seminar TheatreWithin the Fluid Power & Systems and Air-Tech exhibitions, the Fluid Power & Air Seminar Theatre – sponsored by Gardner Denver – will include a collection of high-profile papers, from industry leaders, with papers covering: ‘Technical Standards and the EU In-Out Referendum’ by Dr Scott Steedman of BSI; ‘Understanding the New Trailblazer scheme’ by David George of the Skills Council; ‘European Pressure Directive (2014/68/EU) – an update’ by Graham Miller of Parker; ‘Waste management regulations’, by Simon Rutledge of BIFFA; ‘Lot 31 Eco Design – an update’ by Jouko Peussa of Ingersoll Rand, plus many more.

Industry Entrepreneurship Network (IEN)Exhibition organiser DFA Media has teamed up with the Industry Entrepreneurship Network (IEN) to put on a series of three panel discussions during the three-day exhibition, which will run alongside DFA Media’s other seminar programme. The three sessions will cover the topics of ‘Bridging the skills gap’ (chaired by Susan

Scurlock, CEO, Primary & Secondary Engineer), ‘Financing innovation and entrepreneurship in industry’ (chaired by Lee Hopley, Chief Economist, EEF), and ‘Developing UK innovation and entrepreneurship’, with panels formed from the network’s membership of established entrepreneurs, industrial companies and leading UK trade, science, education and engineering organisations.

IEN provides an umbrella framework for a diverse group of organisations, businesses and media to come together and provide high-quality outputs that bring together ideas, campaigns, initiatives and expertise for promoting and developing industry entrepreneurship and tackling important

associated issues such as STEM education and equality.

IEN is supported by many of the leading trade bodies and membership organisations, including, among many others; Primary Engineer; GAMBICA; IMechE and the EEF, the manufacturers’ organisation, as well as other influential thought leaders and influencers.

Ian Atkinson, DFA Media managing director, commented: “Global initiatives and the technological paradigm shift associated with the Industrial Internet of Things, shows that there is a growing opportunity for industry to take advantage of the creativity and entrepreneurial nature of UK companies.

“Our seminar programme fully reflects that and will provide a fascinating insight into the workings of the sector.” te

For a full seminar programme, including session synopses, and to register visit: • drives-expo.com• fluidpowersystems-

expo.com• europeanoffshoreenergy-

expo.com• airtech-expo.com• maintenanceuk-expo.com

There is a growing opportunity for industry to take advantage of the creativity and entrepreneurial nature of UK companies

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• Approximately 10% of all electricity used in industry is accounted for by compressed air systems.• Around 95% of this energy is converted to heat and is wasted to the atmosphere• Recover the excess heat from your compressed air system using heat exchanger efficiency• CompAir Regulated Speed (RS) compressors can save you up to 50% of your annual energy costs

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Gardner Denver Ltd, Claybrook Drive, Washford Industrial EstateRedditch, Worcestershire B98 0DSemail: [email protected]: 01527 838446 Fax: 01527 527229www.compair.comTel: 01527 838603 Fax: 01527 527229




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Gardner Denver Ltd, Claybrook Drive, Washford Industrial Estate, Redditch, Worcestershire B98 0DSEmail: [email protected]: 01527 838494 Fax: 01527 527229

www.compair.com




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Gardner Denver Ltd, Claybrook Drive, Washford Industrial EstateRedditch, Worcestershire B98 0DSemail: [email protected]: 01527 838446 Fax: 01527 527229www.compair.comTel: 01527 838603 Fax: 01527 527229




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a FREE energy audit

Policies to try and tackle the problem of reducing consumption through

energy saving measures are not new. The Energy Saving Opportunities Scheme (Esos) launched by Decc will be yet another historical footnote in a long list of initiatives aimed at raising awareness of energy in the boardroom and attempting to engage those where energy is a non-core cost.

The energy audits policy has not been without teething troubles: from the requirements, qualifi cation and experience of the auditor, to the deadlines surrounding completion of the initial stage (there are still many caught in the scheme who have yet to submit information to the Environment Agency even though the deadline was offi cially December).

Too many industry commentators, however, are getting caught up in the detail of the scheme and desirable improvements to it, discussing aspects such as compliance-based audits, making savings on processes without considering non-core costs and the lack of sanctions to achieve implementation of the recommendations.

But, if we take a step back and look at the scheme for what it is and not what it could or should be, it is an


Furthering reduction of energy useThe opportunities thrown up by Esos audits should be the start of engineering real savings within an organisation and not left to gather dust (virtually), writes ESTA director Robin Hale

energy saving scheme for the end consumer and the opportunities are for the rest of the industry. That being the case, the next stage is vital, but we need to work together.

The opportunities contained in the reports need to be made available to those who can help implement them. Although data protection is an issue, leaving reports in the desks of company directors will not win the day for energy effi ciency.

The challenge for government is to sit down with the key industry stakeholders and make the most of Esos by putting together those who need solutions, and those who have them.

The energy-saving and money-saving benefi ts can be achieved whether there is a fundamental review

of the energy tax landscape or not.

Despite the usual uncertainty of wondering how long this scheme will last before the

government decides to make

wholesale changes, it is not a time to wait

and see, we as an industry need to continue to encourage best practice, innovation and smarter thinking when it comes to energy reduction, particularly at a time when falling energy prices make the cost-saving argument that little bit more diffi cult.

Together with the Building Research Establishment (BRE), we at the Energy Services and Technology Association are continually revising and updating, documentation on all aspects of energy use and disseminating best practice information as widely as possible in the hope that providing a better understanding will be a catalyst for positive change.

Dr Andy Lewry, a principal consultant in BRE’s sustainable energy team, together with an expert advisory panel, is producing a technical briefi ng note on energy management and building controls and the benefi ts of the European standard BS EN15232:2012. It will highlight the points to consider when deciding which controls would best suit a company’s needs and provide relevant information on the energy saving opportunities.

The document will

consider in detail how energy performance control systems can improve the energy performance of non-domestic buildings through the use of advanced control functions, the performance of which can be assessed by the EU standard. Due for release in the coming months, it will be available as a free download.

The benefi ts of building control, whether standalone units or full building energy management systems (BEMS), makes sense when you consider that energy is 40% of the life costs and 50% of the running costs of a building.

Add the fact that most UK building stock has only basic controls, which suggests a great opportunity for savings, and if the controls are brought up to the highest performance class as recognised within the EU15232 standard, there is the possibility of up to 54% energy savings.

Whether core or non-core, savings of this nature need to be encouraged and integrated into a company’s long-term energy strategy, with or without any specifi c encouragement from UK or EU policy.

To secure your copy of the latest guidance on building controls due for imminent release and to understand more about: which class of controls, which technologies should you use, how do the controls work, servicing strategies and the 10 key issues to address drop an email to [email protected] te

esta.org.uk

VIEWPOINT

The benefits of building control makes sense when you consider that energy is 40% of the life costs and 50% of the running costs of a building

54%Energy savings if controls are up to

the EU15232 standard

Many organisations, both in the public and private sector, are

now looking to cloud computing to help manage their energy consumption.

Those with multiple sites are looking at ways to share energy data with a large number of site contacts and employees. They want a system that can help them delegate energy responsibility to site level and provide a means for updates and feedback to be shared without delays right across their organisation. Cloud-based tools can provide the solution that enables this access, at any time, from anywhere.

So what is the Cloud and what are cloud-based tools?Cloud computing, or ‘the cloud’, is a solution growing in popularity and has become an increasingly viable business option in the past few years. In the simplest terms, cloud computing means storing and accessing data and programs over the internet instead of your computer’s hard drive.

However, the lines between


Could you use cloud for energy?Team’s solutions director Tim Holman explains why he believes organisations and businesses should be embracing cloud-based energy management tools

local computing (on your hard drive) and cloud computing can sometimes become a little confusing. That’s because the cloud is part of almost everything on our computers these days. For example: Microsoft One Drive, Dropbox and Microsoft Office 365.

A true cloud-based tool is only in the cloud and not your local computer. It uses the scalability of the cloud with hundreds of virtual servers powering the software tools. And with an online connection, the cloud can be accessed anywhere, anytime.

But it is important to note that not all hosted software offers marketed as ‘cloud’ are truly cloud-based.

Are you really using the cloud?True cloud providers, such as Team, re-engineer their software for the cloud. We code software to perform better as a fully hosted solution and build talent and expertise around hosting, maintaining and managing the software across numerous servers and across multiple levels of date redundancy in

our own multi-tenant cloud environments. One of the key benefits of using true cloud computing is its scalability, allowing services and capacity to be added within minutes.

Multi-tenancy matters. For example, with a true cloud provider, all customers typically access the same solution from the same cloud. This gives customers continuous and instantaneous access to the latest product upgrades. However, a fake cloud solution does not offer you the advantage of regular, free and seamless updates because the hosting provider is usually not responsible for software upgrades.

Many companies have been sold business applications and solutions that are supposedly cloud systems but in reality they are just getting a legacy platform known in the industry as ‘hosted’.

In summary, not all ‘cloud’ providers are what they say they are.

What are the advantages of the cloud?One of the main advantages

MONITORING & TARGETING

The beauty of cloud computing is that servers are off premise, out of sight and out of your hair

theenergyst.com

is that you don’t need to worry about maintaining the software yourself. The beauty of cloud computing is that servers are off premise, out of sight and out of your hair. Suppliers take care of them for you and roll out regular software updates.

Cloud-based energy management in practiceAn example of an organisation that has embraced cloud-based tools is Somerset County Council. It has introduced the Team Sigma Energy Viewer, which allows site managers to see at a glance how much energy they use, make comparisons and interrogate costs.

With an energy management team of just three, the council can’t physically go out to each of its 419 sites and manage the operational day-to-day use of energy.

It is using the Team Sigma Energy Viewer to help deliver the council’s energy policy objectives and it has been well received across all of their sites. Site managers have been given logins so they can see the energy data for their site, including gas, electricity and water bills, as well as AMR data all in one place.

Simple but powerful and effective, this cloud-based tool empowers individual sites of an organisation to monitor their expenditure

and energy use.As well as being used by

Somerset County Council, the Team Sigma Energy Viewer is also being used by many private organisations across the UK as well as in schools and by other councils.

Time for the energy management cloud?The ability to back up files and store them in the cloud has radically changed the way we use computers, mobile phones, and other internet-connected devices.

Your personal music collections, or work files that you and a colleague are collaboratively editing together, are something most of us use every day. No matter what cloud tool you are using, the benefit of being able to access it nearly anywhere is phenomenal.

These benefits are now available with cloud-based energy management tools. Having everything in one place is the ultimate key to managing and running a successful business.

We are already reaping the benefits of cloud-based solutions for storing, accessing and processing data. In today’s ever-changing business environment, it is essential that employees have access to the energy management information they need, when they need it. te

teamenergy.com

Covering 25% of the UK’s entire electricity consumption, IMServ helps the growing

issue of climate change by providing Control Energy Costs (CEC) with accurate energy data, which allows its clients to hone in on its energy use, and ultimately aid the company to improve energy consumption and reduce costs.

Phil Ager, managing director of CEC, explains: “You have businesses that are very aware of their environmental responsibilities, and at the other end of the spectrum others that are so focused on the day-to-day running of their business that such responsibilities are very low on their list of priorities. By partnering with IMServ, we are able to obtain data that allows us to provide reports and updates to help them measure energy consumption wherever they may be.”

Make changesAger adds: “Our reporting services highlight areas where our clients can make changes to improve their carbon footprint. This not only helps businesses from an environmental responsibility perspective but also financially. Businesses often find it easier to buy into the idea once they see some numbers – sometimes they want to know what it’s all worth in hard cash.”

With figures provided and displayed in easy-to-view graphical formats, CEC is able to help businesses educate staff on their energy consumption and pinpoint areas for savings.


Clearly seeing the dataControl Energy Costs has been working with IMServ to deliver information that makes the job of responding to energy costs and climate change a reality for businesses

Education is a key component of climate change. The mind-set of the general public, employees and business needs to change so that future generations can reap the benefits. Interestingly, CEC works with many customers in the education sector, helping schools and colleges to reduce their energy costs and carbon footprint.

“Having data supplied by IMServ means we are able to provide visibility on energy consumption to our educational sector clients, which can also be used as a tool to help educate their students,” says Ager. “A local school that we provide services to frequently comments on how visibility on usage has helped them identify significant savings simply by checking the obvious – they can clearly see when things are not being turned off.”

The Carbon Trust recently conducted a study that showed how UK schools could reduce energy costs by about £44m per year, preventing 625,000 tonnes of CO2 entering the atmosphere. Therefore, if schools changed their way

of thinking and started using energy data collection and metering services in combination with energy audit and management service providers such as CEC, not only would they be more efficient and save money, but could educate students and teach them to think about energy consumption and conservation.

Business attitudesMichelle Giles, head of commercial and customer care at IMServ, explains: “Customers benefit from using established partnerships by ensuring the best services are implemented with limited hassle, while maximising available expertise and delivering the right solution to the customer.”

Ager adds: “There are businesses out there that like to make a declaration to their customers that they are taking environmental issues seriously. Although it is fashionable these days to ‘go green’, many large corporations need to make sure that their key decision makers understand the value of data collection and visualisation service providers such as IMServ.”

The relationship between CEC and IMServ has to be close for the energy consumption data to be detailed and consistent enough to provide regular energy efficiency results. To help the partnership, IMServ provides its customers, including CEC, with a dedicated relationship manager who assists with day-to-day issues. te

imserv.com

MONITORING & TARGETING

Our reporting services highlight areas where our clients can make changes to improve their carbon footprint

theenergyst.com

Excessively high energy consumption and an awareness of environmental considerations induced Northumbria University to monitor all campus boilers. It was important to know how much energy was required to heat individual campus buildings and to reduce downtime of the heating and water systems.

To that end, university estates staff called in Invisible Systems, a Cumbrian company which manufacture wireless energy monitoring and control software and hardware. A bespoke software programme gathers all available data from the boilers and displays information, which allows buildings to operate in an environmentally friendly way.

A site’s operational consumption is made visible, highlighting where energy use can be reduced and where costs can be saved. If individual buildings were not in use, the fl ow of gas or water could be shut off and considerable savings made.

Vahid Tambe, the company’s technical director, searched the internet for suppliers

of ultrasonic fl owmeters and selected Micronics as it gave the best competitive quote. The Micronics U3000 and Calec ST ModBus were successfully used to calculate usage and control the boilers more effectively.

Tambe was delighted with his choice of fl ow meters. “The U3000 proved itself simple to install as we didn’t need any specialist skills or tools. It just clamps onto the pipe then we connected the power and simply entered the pipe’s diameter.”

Micronics fl owmeters are a cost effective alternative to traditional in-line meter installation. Moreover, it was crucial for the university, which is busy almost 24/7, that there is minimum downtime and maximum availability so the fact that dry servicing is possible was a distinct advantage.

The university plans to install more Micronics fl owmeters, particularly where it needs to know how much energy is used in buildings part owned by it and part by a big supermarket chain. te

micronicsflowmeters.com

Monitoring heating and water makes happy campus

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EI_EnergyManagers.indd 1 12/17/2015 4:50:18 PM

There is little doubt that 2015 was a landmark year for energy audits in the

UK, with the government’s mandatory scheme prompting a surge in activity in both private and charitable sectors.

Much of the speculation among professional bodies, energy managers and the consulting industry has now turned to whether this will make 2016 a landmark year for energy efficiency projects.

This was the point after all. The Esos scheme and the wider audit mandate from the EU Energy Efficiency Directive is based on the premise that once organisations understand the saving opportunities available to them, they will each act according to their self-interest to take advantage.

So will this turn out to be the case? Will outputs from Esos be ‘the great enabler’, to unlock previously hidden potential to reduce bottom line costs? Is it really that simple?

In one way or another, Esos outputs should afford each organisation a perspective on where energy is being used and the technical opportunities available to make savings. Cost and benefit modelling will have been included to provide a range of outline business cases, but will these outputs do enough to empower energy and property managers with a clear and confident sense of direction?

There are some doubts as to whether most Esos assessments will meet these challenges. While there are


A second opinion on your Esos outputs SMS hopes 2016 will be a landmark year for energy efficiency projects, but suspects they may need a little push

potentially many reasons for scepticism, there are three significant factors that have undermined the intent of the scheme:1. The limited consultancy

market capacity and short timescale has made room for inexperienced auditors to compete for services. This has been aided by the government’s dubious decision to license Esos lead assessors from ‘non-professional’ bodies alongside those more established professional bodies.

2. As the concept of the scheme suggests, there is widespread inexperience in commissioning energy auditing activity. Along with this, a desire for lower cost compliance is likely to have resulted in consultancy briefs that go only a little way to comprehensively identifying and valuing project potential.

3. Many typical ‘opportunities audits’, while suitable for Esos, do not give detailed attention to organisational capability to deliver projects and do not frame these outputs in a way that can be easily adopted by the commissioning organisation.

The nature of an energy auditing programme has always been open to interpretation and necessarily so; allowing programmes to be tailored appropriately for different industries and operating cultures.

It should be little surprise that a scheme that effectively prompts the commoditisation of these audits will lead to outputs which vary in value. Many outputs are unlikely to have considered the practical next steps for management and very few are likely to be ‘investment-ready’.

For the reasons above, the SMS consulting team are keen to discuss Esos outputs with a wide range of organisations. Have the assessments delivered on expectations? Have audits provided convincing technical business cases? What barriers are anticipated in securing an implementation programme?

We want to see the acceleration of energy efficiency in the UK. In this spirit, we will be offering a free second opinion on Esos outputs and are happy to have open discussions on approaches to these outputs into projects.

This is an open offer to Esos participants and is intended to help improve confidence for those taking the next steps.

Our hope is that 2016 will turn out to be a landmark year for energy efficiency projects, but we suspect it will need a little push. te

sms-plc.com

ESOS UPDATE

Many outputs are unlikely to have considered the practical next steps for management and very few are likely to be ‘investment-ready’

Individual metering of energy and waterWith READy mobile reading, you can easily read the utilitys meters directly from your car. All you need is an Android smartphone, a small converter unit and a PC program.

The reading takes place automatically while you drive. A road map on your smartphone shows your meters nearby, the ones being read or about to be read. Its that simple.

For more information or advice on which ofKamstrups products and metering solutions best suits your requirements, please call 01787 319081or [email protected]

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64 theenergyst.com

FEATURE SPREAD

February/March 2016

Employing demand-based control technology, Armstrong Fluid

Technologies’ variable speed pumps are significantly reducing utility bills and improving the environmental performance of The Axis in Birmingham.

In addition, the retrofitted pumps are capable of optimising energy efficiency across a wider operating envelope than any other pump range, offering the building’s owners the best possible environmental performance irrespective of changes in tenancy and occupation levels.

The Axis is a 178,000 sq ft office complex in the heart of Birmingham city centre. The 11-storey building has recently undergone a major HVAC refurbishment.

Armstrong Fluid Technology was asked by the site’s controls specialist, Demma Controls, to provide a proposal for the refurbishment of the site’s HVAC pumping system. The existing models – fixed speed end suction pumps from another manufacturer – were reaching the end of their useful life.

Armstrong was asked to suggest an alternative solution that would reduce energy consumption, improve efficiency and enhance the building’s sustainability, with input from Demma Controls regarding the BMS interfacing.

It was also important that the project could be carried out with minimal adaptation of pipework,

64

Pumps slash energy costsVariable speed pumps from Armstrong Fluid Technology are reducing energy consumption at The Axis – a major commercial building in the centre of Birmingham

WATER MANAGEMENT

and that the new pumps could be installed within a similar physical footprint to those currently installed.

Armstrong Fluid Technology’s sales team compared a number of different technical scenarios, quantifying potential benefits, and recommended a winning solution that was able to meet the project’s demanding requirements. The pumps are Armstrong 4300 Series

Design Envelope IVS variable speed models, which provide outstanding environmental performance by optimising energy efficiency of the system automatically, across a wide range of operational conditions.

Armstrong 4300 Design Envelope pumps are a complete solution for heating and cooling systems, integrating a vertical in-line pump, motor, and intelligent variable speed controller. They

70%Energy savings possible via the

Armstrong 4300 Series

65theenergyst.com February/March 2016theenergyst.com

reduce pumping costs through variable speed, demand-based operation — consuming only the energy required, based on current system demand. The variable speed intelligence embedded in the controller enables the pump to respond instantaneously and automatically to system load, adjusting the speed of the pump and drawing only the power required to meet that load.

As the pumps are designed using Armstrong’s Design Envelope concept, they offer energy efficiency capabilities across a wider operational range than other pumps.

Energy efficiency continues to be optimised even if operational requirements of the building vary due to changes in tenancy or occupancy levels. This built-in safety net eradicates the need to trade-off the energy efficiency of the installation through over-sizing of equipment ‘to be on the safe side’.

It also futureproofs the building by providing more flexibility over time without the need for costly HVAC refurbishment/upgrading.

The efficiency of the pump motors is also well ahead of the incoming 2017 legislation which, in combination with the in-built variable speed intelligence, enables the pumps to deliver energy savings of up to 70%.

The pump accessories specified for The Axis delivered further project savings by reducing installation times. Armstrong

Suction Guides and Flo-Trex valves reduce the requirement for pipework and fittings, and perform multiple functions with a single component. This speeds up installation and reduces cost at the same time as offering a valuable reduction in physical footprint.

The resulting space reduction made possible by pump accessories, and the vertical in-line design of the 4300 Series, enabled the pumps to be retrofitted within a similar footprint at The Axis, with much of the original pipework retained, delivering cost savings and speeding up the project delivery timescales.

Throughout their lifecycle, the pumps will also reduce maintenance costs for the building owners. The pumps feature an innovative split-coupled design which enables seals to be replaced in situ, without removing the pump or motor. This enables seal changes to be carried out in hours rather than days, without the need for specialist lifting equipment.

David Roper, area sales manager at Armstrong Fluid Technology, commented: “The Armstrong 4300 pumps are an effective and reliable choice for commercial buildings such as this, and the extra flexibility provided by the Design Envelope design concept provides additional peace of mind for the building owners and occupiers. Energy efficient operation is an automatic outcome, whatever operational changes may occur.” tearmstrongfluidtechnology.com

The efficiency of the pump motors is also well ahead of the incoming 2017 legislation which, in combination with the in-built variable speed intelligence, enables the pumps to deliver energy savings of up to 70%

Waterscan has implemened a water sustainability initiative in the Middle East to help relieve water scarcity and provide a blueprint for the future of the hospitality sector.

Working in partnership with long-term client Premier Inn Hotels, Waterscan devised a greywater recycling system for one of Premier Inn’s newest hotels, the Premier Inn at Abu Dhabi International Airport. It is the first major hotel to be built as part of the airport’s multibillion-dollar redevelopment and expansion, designed to increase its capacity to more than 40 million passengers per year.

Saving water is of primary concern in this region, which averages only 120mm rainfall each year and is one of the highest per capita water consumers in the world.

The Waterscan greywater recycling system works by taking water used for showering and bathing across the hotel’s 300 rooms and treats it through an ultra-filtration membrane before feeding it back into the hotel for use in flushing toilets and for irrigation.

The initiative is vastly reducing mains water consumption, already saving an average of 735,000 litres (24%) of mains water each month – that’s 60 litres per guest. Over the

Sustainability in hospitality initiative

course of a year, this is the equivalent of 110,000 baths. One hundred per cent of toilet flushing at the hotel now uses recycled water.

Barry Millar, operations director at Waterscan, said: “We were delighted to be involved in such a prestigious project. To be able to bring our latest greywater innovations to a region which suffers badly from water scarcity and to realise immediate and excellent water saving results makes us extremely proud.”

Waterscan’s greywater recycling system has low energy components to deliver higher energy efficiency and lower running costs. The system’s membrane provides a fixed barrier to waterborne viruses and pathogens and it incorporates built-in telemetry enabling remote diagnostics reporting and preventative maintenance. It is the first greywater recycling system to be approved by the Regulation and Supervision Bureau for the Emirate of Abu Dhabi.

Matthew Lewis, property development director for Premier Inn Hotels in the Middle East, said: “Reducing our impact on local water supplies and acting sustainably in the areas we operate is a key driver for Premier Inn Hotels and the Whitbread Group.”

waterscan.com

66 theenergyst.com

Nord Drivesystems has equipped all motor-mounted and cabinet-installed frequency inverters with new, more versatile microcontrollers and new fi rmware. The upgrade enables the inverters, originally designed for asynchronous motors, to also control synchronous motors, which is becoming increasingly important, particularly with the advent of IE4 effi ciency motors.

Highly dynamic drive tasks can now be executed even without encoder feedback. There are substantial benefi ts: for instance, customers who have been using IE3 motors with an encoder can save energy and costs by switching to IE4 motors without an encoder. Moreover, new generation NORD inverters are capable of performing

drive-related PLC functions, which can signifi cantly relieve external controllers.

In some cases, previously used mini-controllers may even become redundant and be completely omitted. The inverters support the manufacturer-independent PLCopen function blocks for motion control. They can be freely programmed according to IEC 61131-3 in ‘Structured Text’ or ‘Instruction List’. This makes application development less complex and reduces the associated costs, according to the fi rm.

Customer-specifi c drive-related functions can be implemented by means of the inverter PLC without an application-specifi c fi rmware and free from cost-intensive verifi cation and validation.

nord.com

February/March 2016

PRODUCTS

Hot technology: energy storage via heat battery A new technology means that it is now possible to store renewable energy for long periods of time.

The Sorrel Heat Battery from Sorrel Technology replicates the way the Earth’s core stores heat, to store large amounts of energy for anything from a few days to a few months.

The Sorrel Heat Battery’s metal core is heated to up to 1750°C by any energy source, and remains hot for many months. That heat can be used to create power when it is needed. As well as clean and safe, Sorrel says it is extremely cost-effective.

It uses innovative sold-state heat

transfer technology to release the stored heat either to create steam, or to heat gases which in turn drive turbines, which then generate electricity.

Large-scale prototypes have been built and tested; and smaller prototypes are in development. The technology has been independently tested and verifi ed by Anthony Morgan, chief engineer and director of Innovation at the Carbon Free Group.

John Seneschall, a spokesperson for Sorrel Technology, said: “This is the fi rst time ever it has been possible to store large amounts of energy in a readily reusable form. The applications for this technology are boundless. It makes energy derived from solar and wind the energy of the future. It’s now a case of no sun, no wind, no problem. The Sorrel Heat Battery can

store energy for months. At the fl ick of a switch it can be producing electricity as and when it’s needed, in the most environmentally sound way imaginable.”

The battery can be developed in different sizes: small units (for mobile uses); medium-sized units for domestic applications; and large units to power whole communities or businesses.

sorreltechnology.com

WEG says its new compact variable-speed drive (VSD) range is cost effective and easy to use.

Designed to drive motors with power from 180W to 4kW, the CFW300 series suits relatively small machinery such as centrifugal and metering pumps, fans and ventilators, stirrers and mixers, extruders, roller conveyors, cutting machines and rotary fi lters.

According to the fi rm, the drives are reliable, easy to use and install and straightforward to maintain, with plug

and play modules and removable drive unit fans.

The CFW300 has two slots for extension modules – one for communication and the other for a wide variety of I/O modules. This enables users to integrate RS485 or RS232 interfaces and use Modbus RTU, Bluetooth or USB communication protocols.

The VSD can also be connected to fi eldbus systems such as Profi bus DP, CANopen or DeviceNet, or confi gured for operation under remote control. An Ethernet IP interface is also available.

weg.net/uk

Nord makes inverters more versatileCompact VSDs for low-power motors


Sontay’s SonNet wireless sensing system has enabled the speedy retrofit of HVAC controls at the New London Theatre. Surrey-based controls company Concise Controls did the installation with minimal disruption. It will help improve energy efficiency and also bring greater building use flexibility for years to come.

“This is a prestigious building which currently houses the National Theatre’s world-renowned production of War Horse,” said Concise Controls boss Phil Peverley.

“It is in constant use and required a control system that could be seamlessly installed without disrupting the running of the theatre or effect the fabric of the building. We were not allowed to run cables in the open spaces so decided wireless would be the best option. The sensors were painted brown to blend in and as the walls were covered in padded fabric for sound deadening we used Velcro on the back to attach them.”

The original controls only afforded a single return temperature sensor but, with the new wireless sensors,

Concise Controls was able to add multiple space sensors to get a greater understanding of the temperature stratification for the audience’s comfort. This was one of the main aims of the controls upgrade as the original system was obsolete.

Concise Controls installed a number of temperature sensors on all levels of the stalls and circle, which are in line of sight with each other or as near as possible to assist the signal strength. The sensors relay the reading to the Trend Building Management System.

The battery powered SonNet devices in the theatre are designed around a robust 2.4 GHz, 802.15.4 self-healing tree topology. This eliminates concerns with reception and reliability often associated with ‘point-to-point’ wireless systems.

sontay.com

Haven Power has hired a new chief operating officer and the former Vodafone and Virgin man aims to sell more biomass-produced power via stronger customer service and better transparency.

Jonathan Kini joined the company on 25 January and will oversee all Haven’s business operations.

“Providing a reliable and transparent offering to customers is fundamental to business growth and I look forward to improving this still further,” said Kini.

Part of the Drax Group, Haven sources its electricity from Drax Power Station, the UK’s largest coal-

fired power station which is looking to add to its substantial biomass output.

“I am a great believer in the role biomass technology plays as an energy source for the UK,” Kini added. “Being able to offer reliable, renewable energy at Haven is a huge advantage for our customers.”

havenpower.com

Take a bow for speedy HVAC retrofit

New Haven chief touts biomass power

Product & Services Directory Contact Harry Powell Tel 020 3751 7863 Mob 07557 109476

To feature your company’s products

or services on these pages call

Harry Powell on 020 3751 7863 or

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ENERGY METERING & MONITORING SYSTEMS

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The strategy director of Utilitywise taks about visiting Pompeii, the mystery of Atlantis and harbouring dreams of grand slam tennis success

Q&A

Jon Ferris

Who would you least like to share a lift with? Why?Alain Robert, the French ‘Spiderman’ – he’s known for his amazing feats free-climbing up the outside of buildings, so I can’t imagine he’d be happy stuck inside a lift.

You’re God for the day. What’s the first thing you do?Have coffee and a croissant. Then I can get working.

If you could travel back in time to a period in history, what would it be and why?Having recently visited Pompeii, it would be fascinating to see what it would have been like as a bustling city.

Who or what are you enjoying listening to? I recently uploaded my cd collection to a streaming service, so have been getting back into old favourites including Crowded House, for whom I helped code the first fan-website back in 1994.

What unsolved mystery would you like the answers to?Atlantis – were cities submerged by rising sea levels in the past?

What would you take to a desert island and why?A solar radio – often considered secondary to TV, radio is still a fantastic medium.

What’s your favourite film or book and why?Anything by Terry Pratchett – it says a lot about the changes in the energy industry that he found the time to write his first books while working as press officer for the CEGB.

If you could perpetuate a myth about yourself, what would it be? The myth in my highly astute team that I do indeed know everything – having spent 10 years learning I do believe in the old saying every day is a school day! There is always more to learn, so an inquisitive team to help me out is essential!

What would you do with a million pounds?I’ve long been a fan of Grand Designs, and having retrofitted insulation and replaced an old oil boiler with a heat pump, it would be great to design and build a low-energy house without the constraints of an existing building.

What would your super power be and why?The ability to fly. And if everyone else could, a lot of transport problems would be solved.

What’s your greatest extravagance?When replacing the old oil boiler and large oil tank with the heat pump, the installation of underfloor heating wasn’t essential, but it’s very nice to feel the warmth underfoot on a cold winter’s morning.

If you were blessed with any talent, what would your dream job be and why?Tennis player – I am a decent club player but long ago gave up on dreams of grand slam success.

What is the best piece of advice you’ve ever been given?Follow through. It applies to tennis as well as work.

What irritates you the most in life?

Wasting time in traffic or waiting for connections –

bring on autonomous cars to take you to

your destination in a way that you can make

productive use of the time.

What should the energy users be doing to help itself

in the current climate?The energy industry is on the cusp of transformational change. Energy users need to get involved and drive the change so that they have the opportunity to benefit from it.

What’s the best thing – work wise – that you did recently? I took a holiday – not only was it an opportunity to relax, read and refresh ideas, but it also reminded me that the team I’ve spent years building doesn’t need me to be there to succeed. te

I have been getting back into old favourites including Crowded House, for whom I helped code the first fan-website back in 1994

High climber: the French ‘Spiderman’ Alain Robert

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Tomorrows businesses demand much more.Thats why ENGIE is shaping a new kind ofenergy and services company. One built on intelligent customerled solutions, digital insight and proven people skills to deliver a more effi cient and sustainable future.

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