june/july 2017
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Oldham Council improves efficiency with Remeha boilers
Ultrasonic Heat Meters for THERMOSS Project
Hydrogen Project advances clean energy deployment
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E.ON’s Blackburn Meadows plant named one of UK’s best new buildings
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The challenges of updating boilers in space-restricted plant rooms
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Simplifying compliance with the carbon reduction commitment
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Big data analytics key to heating up the energy market
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Newlec ‘switched on’ to new LED dimmers
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Top 7 energy saving strategies covered at EMEX 2017
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Energy Manager Magazine • june/july 2017
News News
E.ON’s Blackburn Meadows plant named one of UK’s best new buildings
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.ON’s Blackburn Meadows renewable energy plant has been named among the winners of the 2017 Royal Institute of British Architects (RIBA) national awards, with judges commenting on its ‘iconic and beautiful’ design. The biomass combined heat and power plant in Sheffield is among 49 new buildings across the UK to have received 2017 RIBA National Awards which champion and celebrate the best architecture in the UK and around the world and will now be considered for the shortlist of the RIBA Stirling Prize, for the UK’s best building of the year. Commenting on the award, David Topping, Director of Business Heat and Power Solutions at E.ON, said: “Blackburn Meadows is already a real example of the new energy world – a renewable energy plant that provides both electricity to the grid and a more sustainable and affordable source of heating and hot water to local businesses. The Tinsley site has been home to power generation for almost 100 years and it is a huge honour to be told that the design of the new site is continuing to provide an iconic landmark for the area.” BDP architect director Stephen Marshall added: “It is an honour to be included in this year’s national awards and particularly pleasing to see an infrastructure project recognised for its contribution to architecture. The design was naturally driven by the process engineering within but extended from
Photos: Paul Karalius
the realm of the purely functional to the poetic, referencing the local industrial vernacular and the intense heat at the heart of the energy making process.” In announcing the winners, RIBA President Jane Duncan said: “I am delighted to see such confident, innovative and ambitious architecture delivered in such challenging times. Blackburn Meadows shows that contemporary British industrial and infrastructure architecture can be as iconic and as beautiful as its Victorian predecessors.” E.ON is also installing 10MW of batteries at the Blackburn Meadows site in a project that will help stabilise the frequency on the national grid
and balance the range of power generation available. The lithiumion batteries are housed in four shipping containers and will be able to hold the same amount of energy as 500,000 mobile phone batteries1. Customer solutions such as energy storage, cleaner on-site generation, or energy management are part of a range of energy solutions offered by E.ON to help customers to use energy more efficiently and make businesses more profitable. Blackburn Meadows CHP plant is a 30MW renewable energy plant that can produce enough power for around 40,000 homes, converting recycled waste wood into electricity. It also uses combined heat and power technology which is a more efficient process that captures the heat produced through the electricity generation process to be used in a district heating scheme providing heat to customers including Sheffield Forgemasters, the Motorpoint Arena and Ice Sheffield. www.eonenergy.com
1 Based on a system capacity of 5MWh versus a mobile phone battery energy capacity of 10wh (3.7v x 2,700 mAh = 10wh)
Solarplicity launches ground-breaking solar initiative, and allied procurement framework Initiative to save £200 million a year for the UK’s most vulnerable customers
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olarplicity, an industry pioneer within the renewable energy space, has launched a major initiative for social landlords and their tenants to benefit from ‘simply lower energy bills’ using 100% renewable energy. The initiative sees Solarplicity partnering with social housing providers to create a Community Energy Scheme, providing significant and long-term guaranteed
discounts to their tenant’s energy bills. Participants in the community energy scheme receive free LED light bulbs, a smart meter and have solar PV installed (where the property is suitable). Tenants of properties where the installation of solar PV systems is not technically viable will still benefit from the scheme. Having secured European funding post Brexit decision from Maas Capital, a subsidiary of ABN AMRO Bank, Solarplicity is now the only energy provider in England and Wales that can offer these benefits to both solar and non-solar tenants within social housing. The scheme is expected to reach 50,000 households
Energy Manager Magazine • june/july 2017
in the next twelve months and 800,000 homes within five years, at which stage these tenants are forecast to save up to £200 million a year through the scheme. Individual tenants are forecast to save £240.00 a year on average on their energy bills. Pricing is clear and simple, with no standing charges and only one rate for 100% renewable energy, irrespective of the payment method used – whether direct debit, or pay-as-you-go. The initiative is the result of a detailed procurement process between Solarplicity and Alliance Homes, a social housing provider active in procurement activities for the social sector. The framework
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UK Power Networks and National Grid launch major project to boost network capacity
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K Power Networks and National Grid are launching an innovative new service to enable more electricity generation across the South East of England. The region has one of the most dynamic electricity networks in Europe. Significant amounts of renewable energy generation, a nuclear power station and interconnecting cables to Europe make management of the electricity flows a complex challenge for the transmission and distribution network companies, which own and operate the cables and wires. The new service marks a significant step towards UK Power Networks becoming a Distribution Systems Operator and enabling customers to connect to the network faster, cheaper and more easily. At present, new electricity generators in some areas of Kent and Sussex in the South East of England can face significant costs in connecting to the network, due to transmission network constraints. UK Power Networks has been working in collaboration with National Grid to develop a new framework that allows electricity generators to connect to the grid without requiring costly reinforcements on the transmission network in a region, from Bolney in Sussex to Canterbury in Kent. UK Power Networks will use visibility, co-ordination and control to ensure customers can export more of their energy onto the national transmission network. New generation customers connecting in the region will be offered the opportunity to participate in the service. This new offering went live this week and it is anticipated that the service will be extended
agreement enables more than 40 social landlords and 500,000 households to participate. Landlords share in the profits of the scheme, which facilitates the efficient implementation of solar, reducing the time and cost of rollout. “This ground-breaking scheme is set to transform the lives of hundreds of thousands of UK households that currently suffer from fuel poverty. At the same time, it is a major opportunity for landlords to achieve their efficiency targets and provide a point of difference for tenants. It is truly game changing for solar,” said David Elbourne, CEO, Solarplicity Pieter Smit from Maas Capital added: “Partnering with Solarplicity to deliver initial funding for this exciting project enables us to continue to fund into the UK Renewable market. We are looking
to existing customers in the future. New commercial arrangements will be developed and put in place over time to incentivise electricity generators to offer this type of flexible service - whereby they can increase or decrease their output to help balance the operation of the national transmission network. The new service demonstrates National Grid’s commitment to work with distribution network companies and develop solutions that result in lowest cost for GB consumers. National Grid’s input is through its Future Role of System Operator (FRSO) programme that was launched with BEIS and Ofgem in January to extend its System Operator activities and promote whole system operation. National Grid and UK Power Networks have worked together and through the Energy Network Association’s Open Networks project to develop these arrangements. Sharing the knowledge gained with other distribution network operators is a key aim of this project. Sotiris Georgiopoulos, Head of Smart Grid at UK Power Networks, said: “The role of the distribution networks is changing, and we need to work closely with the national transmission network operator to deliver cost-effective solutions. “This is the first time in the UK that we see the distribution systems operator role in action, supporting the wider system. I’m delighted that we’re collaborating with National Grid to make it a reality as it will ultimately deliver benefits for our customers.” Nick Easton, Programme Manager
forward to being involved in such a groundbreaking move to accelerate the transition of the energy landscape in the UK.” “We are continually looking to futureproof our housing stock and provide exceptional service for our landlords. This initiative will provide both those things. We are enormously excited by the proposal for clear, lower energy bills with long-term discounts funded through the deployment of renewable energy” said Steve Drew, Managing Director, Alliance Homes. This announcement builds on the success of Solarplicity’s existing solar rooftop rollout in the social housing sector, where it has already installed solar pv systems on more than 30,000 social housing properties. As a licensed energy provider, Solarplicity can supply cheap, renewable energy directly to any home across the UK with
Whole System (Electricity System Operator), at National Grid said: “We are committed to working with network operators to facilitate the transition to a smart, flexible electricity system. In doing so we will be able to optimise planning, investment and operational processes across the whole electricity system. “As well as benefiting customers, this work is going to provide more capacity for renewable energy in a constrained area. For the first time we will see the positive impact of what can be achieved when network operators work with the system operator to make things better for our customers, and this will set the scene for what we can achieve in future.” David Smith, chief executive of the Energy Networks Association, said: “The UK’s electricity networks play a vital role in connecting new homes, businesses and renewable generators to the grid and have a strong track record of meeting growing demand in recent years. Innovation and new technologies will be crucial to ensuring we continue to meet growing demand for connections efficiently and at the lowest cost, and this project demonstrates how ENA members are working across the industry to deliver exciting new services that meet the needs of customers and the economy. Their work doesn’t stop here, however. Both UK Power Networks and National Grid are also playing an important role in the ENA Open Networks Project, which will lay the foundations of the smart grid in the UK, helping ensure that this kind of innovation becomes business as usual.” www.ukpowernetworks.co.uk
Benefits for tenants
• £240 average annual savings • One single rate, no standing charge • The same price irrespective of payment method • 100% renewable energy • Benefits for solar and non-solar participants • Free LED light bulbs • Free smart meters
Benefits for landlords • • • • • •
Improved SAP energy efficiency ratings Achieving fuel poverty targets Guaranteed saving for tenants Lower CO2 emissions Participating in the profits of the scheme Outward investment in housing stock
or without installing solar panels. For more details see www.solarplicity.com
Energy Manager Magazine • june/july 2017
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Survey by British Gas Business identifies the barriers to energy investment and £4bn cost-saving opportunity
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arge British businesses and public sector organisations have expressed their concern that political uncertainty and difficulties gaining boardroom approval are presenting major barriers to making energy investments. More than 200 of the UK’s largest energy users, experts and innovators at the Energy Live Future conference at Leicester’s National Space Centre on 7 June shared their views on the future of energy with Gab Barbaro, Managing Director of British Gas Business. Those present described growing pressure to reduce costs and convince senior management about the need to take control of their energy needs. More than a third (38%) of delegates at the event, sponsored by British Gas Business, agreed that reducing energy costs remained the central energy issue for large organisations. This was closely followed by the challenge of convincing business leaders to allow investment in new technology (35%). Nearly half (48%) of delegates suggested that political uncertainty, caused by the General Election, Brexit and changing regulation, could make it even more difficult for them to make significant energy changes. Despite these challenges, British Gas Business urged UK businesses and the public sector to embrace the
disruptive trends and technologies that are transforming the UK’s energy landscape, as they present a unique opportunity for large energy users. Barbaro said: “My challenge to business leaders is to get smart and be more proactive about their energy use. Businesses must think long-term rather than be swayed by current political or economic uncertainty - there are countless opportunities for organisations to save money on their bills today, by getting to grips with how it’s being used and taking action where it’s being wasted. “Working with Centrica’s Distributed Energy & Power business, we’re providing customers with the tools to give them real, actionable insights that could save up to 20% through energy efficiency improvements alone. With UK businesses spending around £20bn a year on energy, that’s a £4bn, golden opportunity and just the start of how energy tech can create real value for businesses.” When asked what would be the biggest energy trend of the coming decade, more than half of delegates (56%) believed that battery storage would be most important, followed by using demand-management technology through the Internet of Things (31%) and generating all of your own energy from on-side generation (12%). British Gas Business showed delegates how to overcome their energy issues
by adopting three principles: • Smarter buying of energy. • More intelligent use of energy resources. • Greater control over energy use through initiatives such as on-site generation or demand management technology. A variety of new and emerging energy technologies were on show at the event including the latest generation and storage products on offer to customers through Centrica’s Distributed Energy & Power business. Several other influential businesses took part at the future-gazing event, including Microsoft, EY and Tesla. Delegates learned how to make use of block chain technology and the smart grid, and gave their verdict on current energy technologies during the ‘Energy Tech Tinder’ session. Stephen Church, Partner at EY, said: “The industry is changing at a pace that has never been experienced before. This is the age of the empowered customer – and disruptive technology is at its very heart. Now the industry must rise to new challenges and embrace this change and disruption if it’s to make of the most of the ever arising new opportunities.” Visit the website: www.britishgas.co.uk/business for further information.
It’s not all about the money in energy buying/procurement
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ompetiveness and price transparency are vitally important when choosing an energy contract, however according to research conducted by Gazprom Energy, businesses are increasingly starting to look beyond the price tag. Surveying 200 UK businesses Gazprom Energy found that they are becoming more concerned about the whole package their energy provider is offering. Without doubt 95% of respondents said that price competitiveness was influential when deciding their energy provider but 81% admitted that advice from third parties could also strongly influence their choice too. 64% also said that their provider needed to show a good understanding of the business and its needs to win the deal, illustrating the
growing importance of customer service. Energy providers also need to become more innovative in terms of how they deliver their services according to the research, in many cases allowing customers to take more control. Access to technology to understand and control energy usage has gained increased interest from UK businesses, with 70% saying they would use an online portal to engage with their energy provider to manage their contracts more independently, and 43% saying they’d be likely to use a live chat service to interact with their provider. Businesses have become more inclined to shop around for the best deals rather than simply taking the obvious or easy solution, with 61% of respondents saying they were happy to use separate
Energy Manager Magazine • june/july 2017
suppliers for different types of energy in order to secure a better deal, compared to only 20% who said they would use the same supplier for everything. Mark Eccles, Chief Commercial Officer at Gazprom Energy comments: “Energy is obviously something all businesses need, but we’re seeing an increased number of organisations wanting to take more control of their energy buying choices as well as understanding their energy spend in greater detail. We’re responding to this with a number of new initiatives that will give our customers greater power and independence when it comes to managing their energy as it’s no longer simply about cost.” For more information, please visit www.gazprom-energy.co.uk.
News News
E.ON launches new Code of Practice, improving service for business customers
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sing the insight gained from its involvement in creating the Independent TPI Code of Practice over the past five years, E.ON is aiming to improve standards in business energy sales to ensure customers receive an experience which enhances the reputation of the sector. Brokers signing up to E.ON’s Code of Practice can reassure customers they are using a reputable agent. All who subscribe to the Code are held to high standards and regularly monitored against a range of principles: • Customers should make their decisions based on accurate and complete information – including transparent unit rates and daily standing charges – as well as knowing the process for renewing or extending a contract and their rights when ending a contract. • Sales teams will be assessed to make sure that sales practices are fair and products or services are appropriate to the customer. This includes making the customer aware of how much of the market was searched to obtain the offers proposed to them. • When dealing with customers, company representatives must clearly identify themselves and the company they represent. Sales teams must be monitored and appropriately trained. • Monitoring will be carried out to determine whether energy brokers are adhering to the Code. Iain Walker, E.ON’s Director of Business Sales, said: “Our TPI Code of Practice gives customers the reassurance that with E.ON as their first choice energy provider they will receive great value for money and the support they need. We’ve seen significant improvement in customer satisfaction and have been recognised by the industry for that – including first place in the Citizens Advice league table for small business customers.
E.ON has announced a new set of standards for both Third Party Intermediaries (TPIs) and its own internal sales teams, aimed at giving all business customers better quality service and greater protection when agreeing energy contracts. “Alongside E.ON’s direct sales channels, TPIs play a vital role in procuring energy and energy solutions for business customers and we want to work together with them to ensure we meet our responsibility to enhance customer trust. “This new version of the Code has been drafted with input from customers, TPIs and in consultations with business representative organisations, which we believe brings it genuine authority and authenticity. I’m confident that TPIs who work with E.ON will adopt this new Code of Practice and ensure they give customers a compliant, consistent experience which enhances the reputation of their business and the sector as a whole.” The Code of Practice has been developed in line with industry regulator Ofgem’s principles-based regulation to make it more focused on the delivery of fair customer outcomes for all nondomestic energy sales. E.ON has created a separate team to carry out monitoring and assurance activity for its internal sales team and for TPIs to give assurance that principles are being consistently applied – they monitor interactions with customers when selling E.ON’s energy products. Any sales teams that are found to be breaching the Code can be suspended from offering E.ON tariffs to customers and may be reported to energy regulator Ofgem. Alongside the new TPI Code of Practice, E.ON’s recent improvements to business customers include: • E.ON is trusted to supply energy to more than 450,000 UK businesses. We know one size doesn’t fit all so our focus is to supply tailored solutions to suit all our customers’ needs.
Energy Manager Magazine • june/july 2017
• We provide online access to bills, allowing customers to manage their accounts, including amending their Direct Debit details online. • Our new Live Chat service is available to business customers, giving them instant access to our trained and knowledgeable teams via our website to give them the answers they need. • We have streamlined our Business Moves process to deal with all elements of the process in an endto-end call, saving time and making things easier for customers. • We give customers the flexibility to secure a contract up to six months in advance of their renewal date if they find a deal they are happy with. With a choice of energy plans, our customers are able to fix their price for 1, 2 or 3 years, helping them to manage their cash flow. • Our Sustainable Business Fund supports smaller businesses struggling to pay their energy bills and provides online training courses to help them manage their energy costs effectively. E.ON has been named the best small business energy supplier for dealing with complaints. The new ranking, developed by Citizens Advice, follows the charity’s quarterly league table for domestic customers which was launched in 2012 and allows small businesses to measure how well their energy supplier deals with complaints. E.ON topped the list with a ratio of 18.1 complaints per 10,000 customers between January and March 2017. www.eonenergy.com
adjust temperature
TRADITIONAL ROOM CONTROL:
Monitor heating, lighting, water and wellbeing Central management - with local control control temperature
(for electrical OR wet systems)
monitor sound levels
detect faulty or failing fittings
monitor lux levels
sense humidity
detect occupancy/ absence
apply proportional control
[integrated PIR]
detect open windows
Email alerts monitor hot water temperature
The new Prefectirus CU3 is packed with features that distinguish it from a simple thermostat AND a complex building energy management system (BEMS). Its algorithms cleverly learn the environmental conditions for individual rooms; how much heat is required; the time it takes to reach temperature; dissipation rates; and, lighting, sound and humidity levels – the software then balances comfort and energy use for the benefit of both students and energy managers.
Accommodation managers can be alerted to issues that require maintenance, provide compliance with regulations to support the wellbeing of students and be confident of optimum energy efficiency as heat is only used when needed - without ever setting foot in a room. Students are able to control the comfort of their environment, safe in the knowledge that they cannot waste energy by leaving the heat on high when they go out or if windows are opened.
Prefectirus – just what student accommodation needs from a BEMS. To find out more about Prefectirus visit
www.Prefectirus.com or call 01787 320 604
News
Business leaders urged by international experts to finance a low-carbon future or risk economic ruin
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s heads of state gather for the start of the G20 meeting in Hamburg, the expert group calls on world leaders to put human wellbeing before unregulated economic ambition, noting that the relentless pursuit of economic growth is undermining not only the environment but also the very prosperity and benefits it aims to achieve in many countries, not least in emerging markets. The group states that while rapid economic growth has generated unprecedented improvements in human welfare in recent decades, many policies that continue to maximise growth without enforcing environmental controls are now reaching a point of diminishing social returns. The group, convened by Oxford University’s Green Templeton College’s Emerging Markets Symposium (EMS), includes leading economists, scientists, policy-makers and entrepreneurs. Their report calls on political and business leaders to reverse the traditional economic consensus that environmental initiatives harm economic growth and business, instead encouraging them to be in the vanguard of change. Investing in low-carbon and health-friendly economies has the potential to reconcile profits with employment generation, while also protecting the planet for current and future generations. It also argues that decision-makers have often been more concerned about the cost of interventions to limit environmental damage, seen to hurt business and growth, than about the price tag associated with not doing what is needed. The group makes three key recommendations to business leaders: • Explore innovative ways to invest in transitions to low-carbon and healthfriendly economies, working with institutions such as the World Bank and regional development banks.
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Unbridled economic growth in many leading economies will have disastrous economic and social consequences and lead to irreversible environmental destruction, warns a group of global experts. • Develop new sources of financing, including ‘climate finance’ from highincome countries to help emerging markets and others adapt to climate change, and support the upfront investments needed to switch to renewable energy. • Strengthen corporate governance in emerging markets so they too can grow faster by focusing on ecoinnovation. New research shows companies focusing on eco-innovation in Europe are growing at an annual rate of 15%, at a time when many of their competitors are struggling. Premier League footballer, Mathieu Flamini, a symposium participant and major investor in breakthrough technologies to reduce dependence on fossil fuels and petroleum-based products, says: “This report underlines the urgency of companies and investors turning their attention to solving the great environmental challenges of our era. Companies all over the world now have a huge opportunity to work on solutions that can be transformative for economies and profitable in the long-term for investors. Our company was founded to be just such a solution in the biochemicals field. It is businesses such as these that will succeed in securing a sustainable future - for our planet and themselves.”
Death, disease and destruction: the consequences of environmental negligence In particular, the report notes, global environmental threats are posing an increasingly acute danger to human health - especially in major emerging
Energy Manager Magazine • june/july 2017
markets such as China and India, but also in the world at large: • According to the World Health Organization (WHO), 23% of deaths worldwide are due to modifiable environmental factors - most prominently air pollution, which is the single greatest cause of disease and death in poorer countries and emerging markets. A number of studies have now documented how emissions from public and domestic energy systems combine in fine particles that penetrate the lungs, causing heart and lung disease, cancers and an increased risk of dementia. • Air pollution alone accounts for around seven million deaths worldwide: outdoor air pollution is responsible for some three million deaths a year and a further four million deaths occur as a result of household air pollution. These figures compare with 1.1 million deaths in 2015 from HIV-related illnesses, and just over 11,000 deaths in the most recent Ebola outbreak in West Africa, both of which rightly attracted significant global attention and funding. • The World Bank estimated air pollution cost the world economy some US$ 225 billion in lost labour income alone in 2013; and healthrelated economic losses from haze in the city of Beijing amounted to US$ 3.7 billion in just one month. The world-renowned economist, Jeffrey D Sachs, Professor at Columbia University and Director of the UN Sustainable Development Solutions Network, warns:
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“A quarter of all deaths worldwide are currently directly or indirectly attributed to environmental ill health. We cannot continue to stick our heads in the sand. Increasing air and water pollution, the spread of new diseases, and drugresistant infections are already crippling our health and social systems. Urgent and radical action is needed, including investing significantly in preventing environmental health challenges, changing the way we grow and produce food, and, of course, switching to renewable energy sources.”
Addressing new priorities Reducing the heavy death toll from environmental depletion and degradation will often require radical changes in political priorities, as well as individual behaviour. For example, a recent analysis estimated that households accounted for 81% of the total use of fresh water reserves. However, many households lack information on how to reduce their environmental impact. Much attention to date has also focused on reducing coal-burning by industry and power plants to achieve greenhouse gas targets. While these issues remain of critical concern, new evidence shows that agricultural pollution, mainly from the fumes of livestock waste and nitrogen-rich fertilizers, now outweighs all other human sources of fine-particulate air pollution in many countries. Intensive farming has significant negative implications for human health and is a driving force in the decline of bio-diversity: • Excessive use of antibiotics in intensive livestock production is a major contributor to the spread of antimicrobial resistance; in the European Union and United States, agriculture accounts for over 75% of overall antimicrobial consumption; • Nearly 80% of de-forestation in emerging markets in Latin America is linked to the development of cattle farming in the Amazon; • Producing, processing and distributing meat accounts for up to 40 times more toxic gas emissions (including nitrous oxide and methane) than vegetables and grains. Professor Rainer Sauerborn, Director of the Institute of Public Health at the University of Heidelberg, comments: “We
have to stop worrying about the costs of reducing environmental pollution and start being concerned about the immeasurably higher human and financial costs of not doing what is needed. For example, there is no good reason for us to continue to rely on animals as a main source of protein when plant-based alternatives are both more beneficial to our health and our environment. “The good news is if appropriate action is taken to reduce environmental risks, up to 30% of cardiovascular diseases and lower respiratory infections, 50% of diarrhoeal diseases and 20% of cancers can be prevented.” At a troubling time in international efforts to manage the challenges of environmental change, the report urges global leaders, including in China, India and Europe, as well as local authorities and businesses across the world, to join together to implement and build on the Paris Agreement, an important milestone not only in climate change but potentially also in the history of public health. The EMS report underlines that the need to limit large-scale environmental damage is about much more than the climate and energy policies being discussed in Hamburg. Debates can no longer solely focus on economic costs but must also include new assessments of the costs to human health and well-being, including from air and water pollution, waste mismanagement, soil degradation and diminished bio-diversity. The most effective strategies involve controlling environmental damage at its source – in a number of countries industrial emissions in air and water have been regulated, lead has been removed from gasoline, and highly toxic pesticides have been replaced by safer substitutes. These and other such interventions can provide a basis for accelerated global action.
What needs to be done – summary of recommendations The EMS report lays out a number of recommendations for future action, many of which have catalytic global, national and local environmental, health and economic benefits. These include: • Global leadership: Creating a new global coalition of government, business, civil society and individuals to develop a strategic vision of a long-term equilibrium between
economic activities and natural systems; such a coalition should also lay the ground for binding global agreements to ensure better management of immediate environmental threats to people’s health and well-being. • National governments: Redressing current inadequate tax and subsidy systems that work against environmental and health improvements – in 2015, for example, the International Monetary Fund estimated that fossil fuel companies benefitted from global subsidies of US$ 5.3 trillion, over half of the total health spending of all governments; doubling the share of renewable energy by 2030, thereby not only reducing air pollutionrelated disease but also creating 24 million jobs and increasing global GDP by 1.1%; adopting a broad ‘one health’ system that includes both the social and environmental determinants of health; and increasing the current meager percentages of health budgets currently spent on prevention (just 3%, even in wealthy OECD countries) to assist in achieving the WHOproposed goal of reducing noncommunicable diseases by 25% by 2025. • Local authorities: Supporting the role of local leaders as vehicles of change, e.g., mayors were the loudest voices lobbying in favor of the Paris Agreement; this type of action can become a source of inspiration for other districts and local authorities. • Civil society: Exploring new forms of collaboration between international non-governmental organizations and national organizations in emerging markets to strengthen the case for change locally. • Media: Urging mainstream and social media companies to take on more pro-active roles as gatekeepers in the face of campaigns led by particular vested interests that aim to undermine facts or disseminate ‘alternative facts’ (fake news). Full report and summary is available from: https://ems.gtc.ox.ac.uk/content/ private/secure/environmental-healthemerging-markets-report-launch2017?id=Uvw389kLpZ4
Energy Manager Magazine • june/july 2017
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Opinion
Energy soon-to-be a boardroom priority
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ince the markets experienced full deregulation in the early nineties, we have witnessed periods of extreme pricing volatility, followed by long periods of stability. During that time, energy management as an agenda item has been in and out of the boardroom more times than Alan Sugar. Having had the privilege of working in the energy industry for over 20 years, I have seen the winds of change blow in every direction and then back again. We have witnessed the introduction of the New Electricity Trading Arrangements, the implementation and spectacular demise of the Carbon Market and more recently, the Electricity Market Reform. Our approach to energy management has also evolved over time with increased focus on data, renewable technology, sustainability, stake-holder engagement and well-being. Implementation of new legislation has changed the way we talk about energy as well as the mechanisms we use to report on our usage of it. Legislations that were driven by UK government, implemented on a global stage and then introduced into UK law.
A Perfect Storm The wholesale price of energy in the UK fell steadily over a two year period from 2014 to 2016, though many commercial businesses did not feel the effect of this softening due mainly to the impact of rising non-commodity costs. Historically, the cost of wholesale energy made up around 60% of the fully inclusive energy price. However, this has now fallen to around 45% and is widely expected to equate to only 35% by 2020. As a result, the impact on increasing noncommodity costs has negated any savings that might have been realised as a result of declining wholesale prices. Non-commodity costs are those which do not form part of the price of energy typically relating to the delivery of energy to the customer. They include:
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Renewables Obligation (RO): To subsidise large scale renewable generation
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Feed-in Tariff (FiT): To subsidise small scale renewable generation
•
Feed-in-Tariff Contracts for Difference (FiT CfD): To subsidise low
Arthur Beattie, Director, Carbon2018 carbon energy exports •
Capacity Market Charges: To encourage generation of additional winter capacity
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Transmission Network Use of System (TNUoS): For network installation and maintenance
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Balancing Service Use of System (BSUoS): For costs incurred in balancing demand and quality
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Distribution Use of System (DUoS): For operating and maintaining regional networks
Since the referendum vote on whether Britain should exit the European Union, we have seen the price of wholesale energy begin to rise again. This is due mainly to the weakening of Sterling, though short term gas storage has also been a major contributing factor. We have seen unprecedented volatility in the price of wholesale energy with swings from £13/MWh to £270/ MWh in a short timeframe. Longer term forecasts suggest that the wholesale price of energy will continue to increase for at least two years. The hardening of energy prices, against the back drop of increased commodity costs is creating a perfect storm; it is estimated that commercial energy bills will increase by around 25% in the next 24 months. On the back of this, we can expect energy to be firmly back on the boardroom agenda in the coming months.
Batten the hatches or dance in the rain Risk and opportunity are born out of any change and the greater the implications of the changes, the greater the diversity of risks and opportunities. Leadership teams must share a value of facing the future with positive optimism. If we must choose a mindset, it makes sense to select one which empowers rather than paralyses. This is the attitude that will see businesses benefit and grow from the changing landscape of the UK energy industry. An industry that will deliver higher prices and greater volatility whilst demanding a
Energy Manager Magazine • june/july 2017
commitment to actively reducing energy demand through the application of both legislative and fiscal penalties. So what is the key to sourcing corporate nourishment from such a barren and forbidding landscape? There is no silver bullet; no single answer. There are however a number of mechanisms which, when considered in the context of a wider, interdependent energy strategy, will see every business thrive in the new climate.
Intelligent Procurement As wholesale costs begin to represent a far smaller proportion of the fully delivered energy price, many companies may begin to reduce the attention afforded to the discipline of energy procurement, claiming that efforts should be directed to areas that offer greater control. This would be a mistake. The idea of an interdependent energy strategy is all inclusive and should begin with ensuring the lowest possible price is being set. However, the parameters for setting energy prices and therefore maintaining control over energy costs is changing. More emphasis must be given to the non-commodity elements of pricing; as energy is traded on a futures market, fixing many of these non-commodity costs can be dependent on the level of risk a supplier is willing to take. In this case, such charges can become a negotiable element of the energy price and therefore offer leverage. The setting of wholesale energy prices should be a controlled process, driven by the specific objectives of your business, and taking into account
EnergyOpinion Supply
your requirement for budget certainty and propensity for risk. Somewhere on this scale is a strategy that will suit your business and should be managed carefully to ensure you receive the benefit that is agreed at the outset of any procurement exercise.
on how to improve profitability, reduce operating costs, increase plant life and lower carbon emissions. The reality however is that very few businesses do so; this is because of an inherent distrust in the data or information that is provided to them.
Legislative Compliance
A truly interdependent energy strategy avoids the need to seduce the boardroom with isolated initiatives that promise the world based on forward projections of nonsensical achievements. It instead highlights what must be done based on factual information that highlights the most cost effective route to achieving the overall business objectives.
There is no indication that in the changing political climate, the requirement to comply with energy based legislation will diminish. In fact, legislation instigated under EU directive is already enshrined in UK law and will certainly survive the implementation of article 50. Looking beyond this, there is a clear indication that the UK will want to continue to deliver on the agreements laid out under the Kyoto and Paris agreements regardless of our position within the European Union. The long term forecast is that energy taxes will become simplified as the Carbon Reduction Commitment is wrapped up into a wider ‘energy super tax’ along with a number of other elements that appear on your existing energy invoices. In the meantime, commercial landlords are being required, amongst other things, to deliver more efficient properties (Minimum Energy Efficiency Standards), with greater transparency on billing mechanisms (Heat Network Regulations) and increased ownership on internal building systems (Building Network Operators). The key to an interdependent energy strategy is first to understand what you have to do, then consider what you should do in order to understand how each of the related issues affects the behaviour and development of your energy portfolio.
Energy Management First came metering, then came data; this unfortunately is where for many businesses the story ends. Getting the data right is critical and this can only manifest where an effective measurement discipline is in place. However, the art of energy management is interpreting data to deliver information. Energy technology has grown at a fantastic rate in the last twenty years and yet the basic principles of good energy management have not changed in the last fifty. The difference now is that businesses can be empowered with the information they need to make decisions
As we move out of the Industrial Revolution, where worker clock in at 9am and clock out at 5pm, the lines between work and social are becoming less defined. In an age where a millennial business person can operate a multimillion pound business from a laptop in a coffee shop, across multiple time zones, we must accept that whilst the principles remain the same, how we deliver energy management is evolving. Businesses are entering the market seeking office space that offers ‘wellbeing’, social space and improved air quality over some of the more traditional buying requirements meaning we cannot simply focus our attention on ‘what was’, we must focus on the ‘what is’ and the what is ‘going to be’. Energy strategies of the past have focused on near term benefits at a fixed point in time before being banished to the boiler house shelf to collect dust. In order to be effective, the interdependent strategy must be dynamic, continuous and part of the fabric of an organisation.
Plant Evolution The optimisation of assets must also be one of dynamic consideration. There is an overused phrase in energy management ‘every building is different’. This could be adapted to read ‘every building is different, because of what it has become’. In almost all cases, the moment a building becomes occupied, it begins to evolve to meet the operational requirements for those using it as opposed to the purpose for which it was built. In one example of this, a landmark building that was constructed in the nineties as a highly effective office block, now has a data centre in the basement, a call centre on the third floor and an atrium built into the lobby. Yet
the plant continues to be replaced on a like-for-like basis with the occupants celebrating small increases in efficiency due to advances in technology. Imagine a different way. A programme that set out to evolve the existing plant setup into a model of excellence that catered for the changing behaviour of the building whilst providing the flexibility that allows the building operation to become scalable. Imagine also that the implementation of such a maintenance strategy did not require considerable capital investment, but actually reduced the cost of maintenance over a five year period that would have seen plant replaced in line with the original, considerably outdated, building specification. This is not fantasy, this is intelligent plant evolution and is only possible when you accept that all energy management is interdependent and that no element can be considered in isolation.
Forensic Engagement Having identified realistic targets, based on an integrated understanding of individual buildings and their behaviour, communicate them. The board will open the door only once a fully detailed business plan has been produced, costed, approved, abridged and then condensed into a single paragraph – but for the right business plan, they will open the door. This will happen when you are able to clearly articulate the interdependent requirements of energy issues. How the need to comply is going to require investment; how that investment can also work to improve the efficiency; how that efficiency can improve plant life cycle; how evolving plant can improve the quality of the office space; how that improved environment can attract new tenants. How all of this can reduce operating costs, increase profit and have a positive impact on property investment yield. It is also important to engage other key stakeholders – clients, shareholders, local communities, environmental bodies, press and any relevant CSR teams. Because as the strategy is interdependent, so is the impact. With so many potential beneficiaries, effective engagement is critical to realising the true output of an interdependent energy strategy or as I call it Energy Excellence. For more information please contact: lisa.turner@carbon2018.com
Energy Manager Magazine • june/july 2017
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Opinion
Energy Innovation has potential to win world-wide reputation for the North
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he North is in a strong position to meet the UK’s huge challenge to cut carbon emissions by 80 per cent before 2050 through the H21 Project, according to a leading energy expert. Dan Sadler of Northern Gas Networks’ opinion on the future UK energy mix is reported in a far reaching report into the Northern Powerhouse called ‘Prospects for the Northern Powerhouse – Towards An Industrial Strategy’, which was launched in Sheffield before an audience of senior business leaders and Northern politicians. The report’s findings follow the largest ever gathering of pan-Northern and crosssector business and public sector leaders in the UK, at the UK Northern Powerhouse Conference and Exhibition earlier this year. The report is based on the outcomes of the conference and on two surveys by Ipsos MORI – one of business leaders from across the country and one of business and public sector leaders who attended Manchester Central event. In it, Dan Sadler said that the H21 Project, which is centred on Leeds and the North of England, anticipates the conversion of the present natural gas network to hydrogen as a means of cutting carbon, cost and efficiency. He said that on a cold winter’s day, 90 per cent of the UK’s energy for heat, light and power comes from the gas network and the H21 project forecasts a new process for production, transportation and consumption, utilising and extending the existing resources and supply chain. He said that de-carbonising heat is a commercial game changer, with H21 having significant potential for the present supply chain and the economy as a whole, using new technology, new opportunities for transporting across the network and new equipment in premises in order for customers to use the product. The H21 Project has already led to research from a diverse group of eminent bodies including Innovate UK, the Energy Research Partnership, and Imperial College and is being investigated by the Parliamentary Advisory Group on Carbon Capture and Storage. Mr Sadler said: “H21 is the type of project that could contribute to the building of a genuinely world-wide reputation for the
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Northern Powerhouse, contributing to the growth of jobs, training and international competitiveness of the region as a whole.” The report highlights six key points from the ‘Powering the Powerhouse’ session’s panellists: Andy Koss, CEO, Drax Power; Francis Egan, CEO, Cuadrilla; Andy Manning, Director, Network Regulation, Forecasting & Settlements, British Gas; Mike Dunne, Director, Iona Capital and George Beveridge, Chair, Cumbria LEP: • Energy generation is a key industry for the Northern Powerhouse consistent with the ambition set out in the Northern Powerhouse Independent Economic Review offering sustainable investment, employment and training prospects • The energy industries of the North need to find new ways to collaborate to influence demand for their services as supply is constrained • The UK Government’s Industrial Strategy needs to consider the future of the energy, decarbonisation and the mix of sources in general as well as the pre-eminent role of the North within it • Incentives should be considered to allow industry to use energy at periods of low demand • SMEs need greater access to the energy market in order to promote and apply innovation • Users of energy need greater awareness of how the energy market works in order to be able to make informed choices about costs – supply and demand Richard Green, Director and Business Unit Lead for the North of England at AECOM, said: “Power, more than any other subject debated at the Conference is not simply a Northern regional issue but one that is fundamentally important for the UK as a whole; driving the future prosperity of the country. “The North is leading the way in these matters from the Humber’s position as a centre for renewable energy and technology to Cumbria’s role in developing the next generation of nuclear power. “Importantly these issues are not only being driven by Government, there are numerous SME’s involved in the market across the North leading critical investment and developing technology. The whole
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power agenda strikes at the core of the UK carbon policy and is inevitably an area of both import and export in products, expertise and skilled individuals.” Other issues addressed in the report include the importance of leadership, skills, higher education, UK industrial strategy, finance & wealth creation, the role of foreign direct investment and post-Brexit trading relationships. The report follows comments by one of the principle architects of the Northern Powerhouse concept, Lord O’Neill, who has said that it is imperative that companies, places and individuals take ownership of the idea and not rely on Westminster political leadership. The 2018 UK Northern Powerhouse Conference and Exhibition takes place at Manchester Central on February 13 & 14 and is expected to attract thousands of delegates over the two days. This year’s event attracted the leaders of all the North’s major cities, as well as Government ministers and international delegations from China and India. The Northern Powerhouse Conference and Exhibition is a private company and not part of the UK Government. For further information or to book tickets to the UK Northern Powerhouse Conference and Exhibition please visit www.northernpowerhouse-conference.com
boilers Energy & burners Supply
Oldham Council improves heating efficiency with Remeha boilers
Oldham Council has installed five Remeha boilers as part of a major refurbishment of the heating plant serving its Civic Centre complex. Initial indications from the Council are of energy savings in the region of 20 to 25%.
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he key requirements for Oldham Council, when replacing the 43-year-old failing boilers, were to improve the reliability of the heating service and reduce operating costs. The original low temperature hot water (LTHW) heat generating boiler plant was located in the Tower basement plant room. An in-depth survey revealed that the mild steel flues that had been built into the building during construction had deteriorated to the point of becoming dangerous. Due to structural, planning and financial constraints, the decision was taken to decentralise the boiler plant. The location of the new plant rooms in two internal car parks – one on the ground floor, the other in the basement – presented a number of challenges for specifiers Unity Partnership. “Flueing, delivery access and positioning of the new plant, as well as distribution of the services to serve the existing sub plant rooms all had to be addressed,” said John Schofield, senior mechanical engineer at Unity Partnership. Five Remeha boilers in total were specified to meet the logistical and efficiency requirements, as John explained: “Size, ease of installation and manoeuvrability were important
considerations in specifying the boilers. Added to this was the need for improved efficiency and reliability. We specified Remeha Gas 310/610 Eco Pro condensing boilers as they meet all of these requirements.” Four Gas 310-10 section Eco Pro boilers were installed in the plant room serving the Civic Centre with one Gas 610-10 section Eco Pro boiler installed in the second plant room serving the Queen Elizabeth Hall. “The Gas 310/610 boilers are conveniently mounted on wheels, which helped overcome the site access restrictions on this project,” John continued. “The boilers were simply unloaded at the entrances to the car parks and rolled about 100m into position. The adjustable feet then levelled and effectively fixed the boilers in place.” The efficiency of the new Remeha boilers has impressed Oldham Council, achieving the required high performance and considerable energy savings. Additionally, the small footprint of
the boilers and the neat plant room design has released a large area of usable space for other projects, further benefitting the Council. “The new boiler plant not only looks good, but early analysis indicates that it is delivering between 20 to 25% savings in energy costs for Oldham Council,” said John. Rapid energy savings, improved reliability of heating, valuable extra space – the Remeha replacement boilers are delivering on every level for Oldham Council. The specifier on the project was John Schofield at Unity Partnership. The contractor was Steve Barton at WH Good. “I have been installing and specifying Remeha products for the last 14 years due to the reliability of the products, the rapid delivery times, and the quality of the service provided by their sales and technical teams and the area sales managers.” John Schofield, Senior Mechanical Engineer, Unity Partnership. www.remeha.co.uk Email: info@remeha.co.uk
Energy Manager Magazine • june/july 2017
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Opinion& burners boilers
The newest commercial boiler on the market, the Viessmann Vitocrossal 100, is also the most compact.
THE CHALLENGES OF UPDATING BOILERS IN SPACE-RESTRICTED PLANT ROOMS
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nergy efficiency improvements and lower heating bills are being attained at an increasing number of premises where old atmospheric heating boilers are replaced with modern gas condensing boilers, but a surprisingly basic difficulty can get in the way of this. When modernising plant rooms, the room itself is commonly a challenge. Too often, there’s awkward access, a small floor area, or low ceiling height. Many buildings have old atmospheric boilers where it seems physically impossible to retrofit a modern condensing boiler in the same space. We are finding this especially true of plant rooms in schools, colleges, universities, offices, and care homes. Now though, what was previously impossible has been made possible, thanks to recent innovations in boiler technology.
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Jonathan Grist, commercial sales director at Viessmann UK, spotlights some of the key considerations involved in boiler retrofits. The existing number of radiators in a heating system will usually determine the output required from the heat generator. But if meeting that demand requires a boiler (or boilers) and ancillaries which simply won’t fit the space in the plant room, the room will have to be relocated at considerable inconvenience and expense. This is why Viessmann has worked hard to develop a floor-standing gas-fired condensing boiler that delivers high performance and energy efficiency despite having a small footprint. The result of these efforts, the new Vitocrossal 100, sits inside a casing just 680 mm wide, 1459 mm tall, and 660 mm to 1010
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mm long (according to output), whereas boilers with comparable outputs are typically 1000 mm to 1200 mm long. In tight situations, that’s a critical difference. This breakthrough, extracting big heating output from a small boiler, has been made possible by a new stainless steel Inox-Crossal heat exchanger.
Floor-standing for flow temperature In order to meet the needs of the radiators already in place, boilers retrofitted into existing heating systems tend to require a high flow temperature
boilers Energy & burners Supply
and high water content. This often rules out wall-hung boiler solutions, where flow temperatures can be restricted to 75-80°C, whereas the latest generation floor-standing boiler with a highvolume heat exchanger can achieve a maximum flow temperature of 95°C and maximum operating pressure of 6 bar. A low water content boiler (which typically holds 0.1 to 0.06 litres of water per kilowatt of output) requires a minimum flow rate which can only be achieved with the assistance of hydraulic parts such as circulation pumps and, for larger output boilers, a by-pass or low-loss header. Relatively high levels of water at a high temperature are diverted via the low-loss header back to the boiler’s return to maintain a constant flow within the boiler circuit. This achieves low condensing levels, meaning a relatively low level of efficiency, and is likely to bring higher running and maintenance costs because of all the additional ancillary components. In contrast, a high water content boiler (which typically holds 0.6 to 1.4 litres per kilowatt) is able to make much better use of the condensing effect, with no need for the full flow rate once the
boiler’s design temperature is attained. And because high water content boilers accommodate variable flow, there’s no requirement for minimum flow and no need for shunt pumps.
boilers, which constantly optimises the air/gas mixture and self-adjusts to all gas types and calorific values. This has the additional benefit of reducing running and maintenance costs.
Some high water content condensing boilers also have two return connections, meaning bigger systems with different temperatures can be connected at different connection points at the boiler, improving operational efficiency by up to 9 per cent. A second return connector for low return temperature, down to 30 degrees C, results in the boiler operating at the lower condensing output temperature, allowing the water returning to the boiler to be significantly lower than the gas dew point (57 degrees C). This means the system can extract the latent heat in the water vapour of the combustion gases in the flue, producing condensate and increasing efficiency.
With maintenance in mind, it is possible to achieve the output and safety net of a cascaded wall-hung boiler set-up with floor-standing boilers. The option of having two boilers in one casing to achieve high output (a twin-cascaded Vitocrossal has a range of up to 640 kW) is worth considering because it means that heat supply can continue uninterrupted when one boiler is offline for maintenance. Sending students or office workers home on a cold winter’s day because of a faulty boiler is a scenario we can now put firmly in the past.
To quantify how effective these technologies can be, in the new Vitocrossal 100 (which has a modulation range of up to 1:5) efficiency levels are 109% (98.2% gross). This exceptional performance is assisted by Lambda Pro self-calibrating combustion technology, unique in floor-standing
In the past, too, we can now put the inconvenient and expensive need to relocate or rebuild plant rooms which were once too small to accommodate modern gas-condensing boilers. Advances in technology mean that, like Dr Who’s TARDIS, there’s a boiler out there with much greater capabilities than its exterior dimensions suggest. www.viessmann.co.uk
To limit disruption to daily school life, the Viessmann Vitocrossal 100 has three wheels that allow it to be pushed quickly like a vehicle into position without lifting the boiler or scraping the floor and the front of the pallet turns into a ramp.
Energy Manager Magazine • june/july 2017
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Energy management Opinion
Simplifying compliance with the carbon reduction commitment
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The City of Cardiff Council, like other organisations in non-energy intensive industries, must comply with the requirements of the UK’s Carbon Reduction Commitment Energy Efficiency Scheme. Energy Manager Adam De Benedictis explained how working with Energise helped the council to meet its legal obligations with the minimum of fuss.
he Carbon Reduction Commitment (CRC) Energy Efficiency Scheme is a mandatory carbon emissions reporting and pricing scheme administered by the Environment Agency, the Scottish Environment Protection Agency and the Northern Ireland Environment Agency. Its aim is to reduce non-traded emissions by 17 million tonnes by 2027, supporting the UK government’s objective to decrease the country’s carbon emissions by 80 % by 2050. Under the scheme, large public and private sector organisations, such as the City of Cardiff Council, that consume 6,000 MWh or more of electricity across their UK estates, are required to monitor, report and purchase or surrender carbon allowances. There is a clear financial incentive to cut emissions as much as possible, as this reduces the number of emissions allowances that must be purchased. The City of Cardiff Council spends around £10 million a year on energy. A team of six people manages the energy budget and takes responsibility for regulatory compliance. In addition, the team undertakes capital projects to enhance efficiency, including retrofitting LED lighting to older buildings and commissioning renewable energy schemes. To help ensure CRC compliance, the council sought advice from Energise, as Adam explained: “The council has about 350 operational buildings, many of which are older, less energy efficient stock. There has been a big focus on improving these buildings, as newer properties are generally more efficient from a carbon emissions perspective. As well as improving our existing premises, we also look for opportunities to commission renewable energy schemes, such as the recently opened Radyr Weir hydroelectric plant, which generates around 1.6 million kWh of electricity a year, amounting to an income of about £370,000 per annum for the council.” “I joined the council four and a half
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years ago, just as its CRC submission was due. Although I had previously had some involvement with CRC, with a tight deadline to meet I needed the support of a company with an in-depth knowledge of the subject to ensure that we were compliant and submitted our return on time. I contacted Energise and found that the team there was already familiar with the SystemsLink Energy Manager software that we use to manage our database. They were able to do everything for us, which made the process very straightforward.” Since then, the council has also commissioned Energise to perform a number of energy audits at key locations. Adam continued: “We needed a detailed understanding of the opportunities for energy reduction projects at our core sites, and engaged Energise to carry out the audits on our behalf, as it had more expertise in the subject than we did. While we could identify where action was necessary, Energise was able to go into the problem in depth, producing a detailed report that gave an indication of the likely cost of the project, as well as the potential benefits and cost savings.” “The audit reports helped us to
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determine the main sources of energy consumption on our sites and identify buildings where we could improve the energy efficiency, and to create a business case for the proposed projects. Rather than focus on individual buildings, we took an organisation-wide project approach, focusing on specific issues that were known causes of high energy consumption. On many of our sites, lighting was identified as a major energy user; we have since retrofitted LED lighting in many of our buildings.” “Working with Energise has helped to transform our in-house capabilities. The company spent time training us, and we have now developed our skills to a point where we are no longer dependent on external help for our CRC submissions. We’ve gradually made the transition from a situation where we depended on Energise to do everything for us to handling most of the CRC requirements ourselves. At the same time, we have a very good relationship with Energise and continue to rely on the company to provide QA services, support and advice on an ad hoc basis whenever necessary, and to informally audit our processes.” www.energiseconsulting.com
EnergyEnergy management Supply
TACKLING OVERHEATING IN CITY CENTRE APARTMENTS Mark Deeney, business development director for Glen Dimplex Heating & Ventilation, explores the challenges faced when heating and cooling modern apartment buildings – and examines a ‘loopy’ new approach which could revolutionise the way we heat multi-occupancy residential buildings.
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urrent new build dwellings in the UK are at risk of overheating due to a number of factors which include more stringent regulations on air tightness and fabric performance, increased living density, single aspect apartment design and high internal gains. This risk is exacerbated in city centre multiresidential buildings, where internal gains and solar gains can be more significant due to an increased urban living density. Modern apartment buildings in the UK range from two storey buildings to in excess of 90 storeys and now represent more than 50 per cent of the planned new build housing stock. Currently, there are approximately 500 projects greater than 15 storeys planned for the UK in the next ten years. Whilst these towers have different design considerations to other apartment or multi-residential buildings, they share some common constraints, which restrict the ability of the designer to successfully adopt passive cooling measures. Namely, these include: • External noise from wind or traffic influencing window operation behaviour • Window restrictions due to tower height • Concerns about air pollution influencing window operation behaviour • Maximisation of the site footprint for lettable floor space • High density living space • A trend toward centralised heat generation plant • Lack of coordinated control for mechanical ventilation and heating technologies Overheating can be addressed using mechanical cooling via dedicated chiller plant and a chilled water network, but this often masks the symptom without addressing the cause. BRE identified that the heating networks in some buildings were failing
to perform as expected by the designers, which has been anecdotally discussed in other studies, such as the Seagar distillery published by AECOM/CIBSE. It identified that the heating networks are losing more than 50 per cent of the total energy produced during distribution and predict poorer results in future nearly zero-energy buildings (NZEB) planned as dwellings for London. This not only causes an increase in the energy consumption of these dwellings but also inadvertently increases corridor and apartment temperatures to unacceptable levels. Consideration of performance and selection of the distribution system and centralised plant are key areas where a designer can regain control for the building design. To overcome this issue, the new Zeroth Energy System from Glen Dimplex Heating & Ventilation (GDHV) offers an innovative new approach to heating and cooling city apartments. By creating a series of ‘energy loops’ within the building, this alternate distribution design will not only save energy but also improve the thermal comfort of the occupants by significantly reducing the corridor temperatures and providing a lower CAPEX option for comfort cooling when compared with a traditional chiller system. In addition to using conventional, readily available technologies, Zeroth also facilitates a greater opportunity for the capture of waste heat/cool currently inaccessible to the majority of UK buildings. Work done to date by GDHV has shown an energy network can improve its efficiency from less than 50 per cent to 98 per cent using Zeroth, which equates to substantial energy and monetary savings.
Zeroth Energy System: how it works The new Zeroth Energy System from Glen Dimplex Heating & Ventilation (GDHV) delivers localised control to provide comfortable temperatures
within apartments, reduce overheating in communal areas and ensure residents only pay for the heating or cooling they use. Those living in modern apartment blocks face a common issue of uncomfortable temperatures and extra costs. This is a direct a result of building heating systems typically having just one option to accommodate all residents. As a result systems ‘run hot’, with communal areas known to top 36°C year round and those with windows receiving direct sunlight broiling in their apartments. Plus, with the costs of heating system losses spread across all residents, they can easily find themselves paying extra for the discomfort. The Zeroth Energy System overcomes these issues by creating a series of ‘energy loops’ within the building, replacing the high temperature system with a cool, low pressure system, maintained by the building’s central plant room. With Zeroth, low temperature water flows around the building’s main loop to each apartment, which all have their own ‘mini loop’ where an individual heat pump produces heated or chilled water to the desired temperature. The water can then be passed to fan coils, which deliver warm or cold air into a room through vents in the ceiling or wall, or to underfloor heating, or smart electrical, fan-assisted wet radiators. Excess heat generated within the apartments is passed back into the main loop. This means the central plant only needs to fill the balance of heating for the entire building, rather than servicing the total heating or cooling requirements of every resident at once. It is more environmentally friendly, as less total energy is required to heat and cool the entire building, and it is far more cost effective, the benefit of which can be passed on directly to residents in the form of lower average heating or cooling bills. For more details call 0800 028 6122.
Energy Manager Magazine • june/july 2017
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monitoring & metering Opinion
Customer billing: what does the future hold?
Chris Cullen, Head of Sales and Marketing, Echo Managed Services
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n an increasingly fluid utilities market, customer loyalty can no longer be taken for granted, becoming conditional rather than a given. Despite this, more than three quarters of customers (77%) reported receiving poor service when it came to billing, a key customer touchpoint, in the past year, according to research Echo recently commissioned. The implications of this are particularly concerning as we found that one in seven would definitely switch supplier if they had a billing issue, whilst almost half (45%) would seriously consider it. Further challenge arises from the fact that it’s not just about getting billing right today. Utilities companies must keep a close eye on what the future might look like and be agile in shaping their future offerings with both customers evolving expectations and advancements in technology in mind. Yes, delivering accurate bills, correcting mistakes quickly and being more transparent when it comes to tariffs are all invaluable ways to build customer trust today, but how might customer engagement during the billing process change in the years ahead?
Prioritising customer convenience will be key Great customer service relies on offering customers choice based on their own unique needs and preferences, and minimising customer effort. As we move further into the smartphone age, more and more of our day to day lives is being conducted through our phones – we can already receive our news, stay in contact
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with friends, and buy our everyday goods at the touch of a button. Compared to this, for many, even having to log into an online platform to pay your bills will be seen as an unnecessary hassle in future. While some companies already enable billing through a mobile app, this innovation could quickly become old hat in a world of fast technological change. It’s not too hard to perceive for example, that the future of billing could lie in an era of the “super app”, an all-in-one mobile service where consumers could access their social media feeds, their emails, their shopping, and even their bills – essentially everything they need to manage their lives – all on a single, unified platform.
case, what will set future generations apart from their predecessors is that, because they have grown up with the technology to essentially manage their life via a device in their back pocket, many will operate with an “everything under one roof” mentality. Multi-utility billing, already common across gas and electric billing, has shown that there is serious potential in the market for providers who can diversify their services and provide their customers with a way to pay off most – if not all – of their bills at once. Moving forward, the challenge here will lie in providing this solution while keeping bills as clear and easy to understand for the customer as possible.
The human element
Personalisation & Proactivity
It’s particularly important to remember that there will never be a “one size fits all” approach when it comes to your customer base, and exercising a degree of flexibility will be hugely beneficial for all parties in the long run. On this note, billing providers cannot forget that their customers are human, with unique circumstances that will change from month to month. There’s no telling how the future will look for your customers – they will likely go through both high points, where payment won’t be an issue, and low points when they may be feeling the pinch and less able to pay their monthly bills, or may find themselves in circumstances of vulnerability. A challenge into the future is for providers to proactively identify this – adopting a customer-first approach to billing that perhaps allows for more flexible payment plans when customers are experiencing problems. Customers will remember the company that sees them as more than a string of numbers, and are more likely to remain loyal to a business which showed them flexibility and loyalty in turn.
The era of the multi-bill If we’re being honest, people don’t really enjoy paying bills, and ideally would like to spend as little time doing it as possible. While this has always been the
Energy Manager Magazine • june/july 2017
The modern customer prioritises personalised products and services that are relevant to their own unique needs, with just under half (46%) of consumers aged 16-30 claiming an interest in unique products and services. With this in mind, a great way for billing providers to be proactive in the future is by tailoring their bills to suit each customer. While personalised bills may be a little more costly, customers will value bills which are tailor-made for their own circumstances far more than an identikit bill which is exactly the same as that which their neighbours receive.
The Death of Post Paid Billing? The recent boom in real-time payment technology has created a world in which people are able to transfer money and pay their bills on the spot. With this in mind, many experts are now predicting that the era of billing as we know it – paying a monthly fee for your utilities after you have used them – may soon be drawing to an end. The future of billing could instead move towards real-time fulfilment, wherein customers can pay for their utilities as and when they use them – a far simpler and more fluid option. Should the market end up going down this road, the key for businesses
monitoring Energy & metering Supply
looking to retain consumer trust and loyalty will be to find alternative ways to engage their customers in the absence of regular billing cycles. This could be achieved through simple, inexpensive options such as SMS alerts, social media and online support staff.
The impact on customer engagement and trust Water billing hit the headlines earlier this month, when a recent report by the Consumer Council of Water revealed that the water sector had officially become the most maligned utility sector for consumers in terms of value for money. Our research demonstrated that in some sectors where there is the most intense competition for customers (such as telecoms and financial services), one in three customers scored billing as eight out of ten or better. Here, the increased competition created by customers having more choice in terms of their service provider, has led to companies focusing on the customer’s exact needs in order to retain their business. However, our research found that the water sector, where customers have no choice, scores lower in this regard, with a customer approval score of 7.24. Energy companies, despite operating in a competitive market, are even further behind, with an average approval rating of just 7.08 – barely above the lowestscoring local authority sector. When it comes to billing, a key touchpoint in the customer journey, experiences impact the bottom line. Utilities companies need to understand their customers unique preferences and frustrations, offer customer choice and keep lines of communication open in order to improve customer satisfaction and company reputation. While the more mobile, real time future of billing is looking very promising from a consumer convenience standpoint, to take full advantage businesses must ensure that becoming more digitalised does not come at the cost of decreased engagement with their customer base. People will always trust a business which takes the time to engage and communicate with them more than they will a faceless entity which just takes their money from them. To ensure that this does not become a problem in the future, businesses must prioritise finding new, innovative ways to engage with their customer base to ensure that advancing technology remains a benefit, not a barrier. www.echo-ms.com
Ultrasonic Heat Meters for THERMOSS Project
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ell Flow Systems have recently been working closely with a large global specialist in energy management and automation, to supply non-invasive energy monitoring systems to multiple sites across the EU. The units will be supplying data to be used in the EU commissioned THERMOSS project for energy efficient buildings, under its HORIZON 2020 programme. The project will last for 42 months, and will involve the collaboration of 12 partners from the EU and Switzerland. The aim of the THERMOSS project is to contribute to the wider deployment of advanced heating and cooling technologies in buildings throughout the EU. This project includes addressing 30% energy consumption reduction in buildings and 20% in districts. The development process consists of five steps: technology database creation, technology packages refinement, technology package sizing toolbox, thermal energy flow algorithm, integration and validation. The study will
be implemented across several key sites in the UK, Finland, France, Switzerland and Spain, as to draw results from various climates and validate the results. As per the requirements of the heat energy monitoring study, the metering system needs to be reliable and highly accurate, whilst being as non-invasive as possible as not to compromise the existing systems on site. Bell Flow Systems successfully supplied 14 of the BFU-100M units with clamp on temperature sensors, to UK and Finnish sites. The BFU-100-M uses an ultrasonic signal from external, clamp on sensors, to calculate flow rate without needing to alter or cut into any pipework. The sensors simply clamp on to the outside of the pipe. The ultrasonic sensors, and temperature sensors, feed back into the energy calculator which provides the user with accurate and reliable energy usage information. This data can then be fed back to a PLC or building management system to for monitoring and usage analysis via a pulse, 4-20mA, or Modbus communication output. www.bellflowsystems.co.uk
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monitoring & metering Opinion
Big data analytics key to heating up the energy market
Alyssa Farrell, product marketing manager, energy and sustainability at SAS
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oday, the energy market is more condensed and competitive than ever before. Under imposing regulation, suppliers are fighting for prime position to get ahead. With a snap General Election added to the mix and most political parties calling for reform, the pressures to provide cheaper and more competitive tariffs are heightened. In this relentless climate, suppliers have no option but to reassess their business models. In February of this year, UK regulator Ofgem announced that customers switching providers was at the highest rate in six years, with many increasingly shopping around for the best deal and savings. However, the regulator revealed that suppliers were still not doing enough for about two-thirds of the market when it comes to value for money. As ever, the energy battleground remains on price. Tomorrow though will be about how these firms can engage with younger consumers, who are increasingly expecting a more personalised service. As we see an uptake in connected technology in the internet of things (IoT) era, it’s not just a case of knowing a customer’s likes and dislikes, but understanding and predicting their future needs and preferences. Only those suppliers that adapt to provide these personal experiences will thrive, leaving others behind.
Fuelling the data generation What’s certain is that it’s going to be difficult to “wow” the next generation of energy users. These digital natives are highly selective about who they share their personal information with. Recent research we carried out with the Future Foundation into Gen Y (those aged 16-34 in the UK) shows that nearly half don’t feel comfortable sharing their data with energy suppliers. Only 18 per cent trust their provider to find them the best deal available. Despite this weariness, the findings show that this emerging generation recognise that insights from the data they share can be used to enhance their lives and wider society.
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And the energy sector is sitting on a data goldmine. Experts say the sector is set to experience substantial growth in the adoption of big data and IoT as the industry opts for intelligent assets, smart meters and appliances that drive business efficiency. Indeed, big data and the IoT will deliver a £15.6 billion boost to the UK energy sector over the next five years, according to research carried out by the Centre for Economics and Business Research. At present, 67 per cent of energy companies surveyed have adopted big data analytics. By 2020, this is expected to rise to 80 per cent. This data explosion provides opportunities for electric, gas and water suppliers. Already, companies are embracing technologies such as data analytics, which will unearth customer insights and help suppliers drive a more personalised service.
Getting personal With initiatives such as the smart meter rollout – where 53 million meters are set to be installed in over 30 million premises over the next four years – the energy sector is on the cusp of a data explosion. Many regulators have insisted that smart meters are critical to achieving national energy efficiency goals. In reality, while smart meters give suppliers the opportunity to establish peak pricing programs, changing customer behavior is proving to be extremely difficult. Energy suppliers can use insights from meter data to better understand customer preferences and behavior – an important first step. This could include, for example, the types of appliances they use and their peak usage times throughout the day. The more holistic a view the supplier has about its customers – including usage, payment information, communication preferences – the better it can manage each customer relationship. Personalisation based on holistic understanding of customer data presents a unique opportunity for suppliers to improve customer engagement and revenue generation. All they require is the expertise and tools to be able to extract
Energy Manager Magazine • june/july 2017
valuable insights from the repository of data they have at their disposal. Suppliers can then leverage data to take customers on a personal journey crafted specifically for individual households. By having more insight into their energy usage, energy providers can highlight efficiency savings as well as enticing them with rewards to change their behaviour. For example, it will be possible to provide insights about the efficiency of major appliances and lighting in the home just by analysing changes in electric current. Analysing this data will help households take energy-saving measures with short and long term financial gains. Maybe you can even forecast the impact on your quarterly energy bill by taking advantage of an offer, via an app on your smartphone.
Giving back power The next generation of energy users are demanding more control, clarity and hyper-personalisation. They expect their provider to be proactive and engage with them on a personal level. Using analytics, they can help itemise what is contributing to bills and identify key areas where savings can be made, as well as providing relevant and personal advice about managing energy use. This builds trust with the customer and can directly impact retention rates. The suppliers that thrive in this new data paradigm will be those that have a detailed understanding of their customers. Winning the hearts of customers today, means predicting their needs tomorrow. The suppliers that are able to do so will become more than just a household supplier. They can transition into lifestyle partners and trusted energy advisors that help consumers to more effectively manage their home. www.sas.com
biomass
Branching out for sustainability
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aste wood has been largely overlooked as a resource – over 10 million tonnes of it are produced in the UK each year from sources including public sector bodies, the construction and demolition industries, as well as industrial and manufacturing processes, and retail. And yet most of it still ends up in landfill – this a huge missed opportunity. Sites like Hadfield Wood Recyclers operate a nationwide service taking all grades of non-hazardous wood waste. They process it and recycle it into products including animal beddings and feedstock for panel board. Where recycling is not possible, wood waste is processed and used as fuel.
The wood waste recycling sector is helping drive collaboration and resource efficiency. Nicola Meadows, RWM Event Director at Ascential calls for policymakers to take the initiative in supporting growth in this sector as part of a wider transition towards a circular economy.
Bioenergy goals In fact, bioenergy is expected to contribute 57% of the EU’s total renewable energy by 2020, and the use of waste and recycled wood should play an increasingly important role in the sector. Using waste wood as feedstock for power stations helps to divert material from being needlessly wasted on landfill sites, maintaining the value of waste wood as a resource and providing a sustainable source of energy. Of course, wood should continue to be recycled and re-used wherever possible, practical and cost-efficient, before it is turned into fuel. However, the principal sources of waste wood include forestry residues, primary and sawmill processes, manufacturing and construction and other secondary processes such as the furniture, paperboard and joinery industries, demolition, industrial and commercial waste streams. Often this material has been rejected for recycling, or is unsuitable, and would otherwise likely end up in landfill. Using wood waste feedstocks like demolition waste, mill residues and post-consumer waste further adds to the sustainability argument, particularly if those feedstocks are locally sourced. This cuts down on supply-chain emissions from collection and transport, and reduces the overall carbon footprint of the initiative. This year, for instance, a groundbreaking waste wood biomass plant came online in East Yorkshire designed to use recycled wood as its fuel. Developer HRS
says 100% of the biomass feedstock for the 22MW facility will come from sustainably sourced waste wood and reclaimed wood supplied from the surrounding region. It also says the plant was the first one built in the UK using British technology, and that it had seen a lot of interest in exporting this know-how around the world.
economy. An integrated approach to feedstock that considers all aspects of bioenergy, from forest management to waste wood collection across industries, helps to retain the value of resources for longer and reduce irresponsible waste.
Collaboration for commercial viability
As we move towards the circular economy model, which sees materials form part of a complex cycle of re-use rather than a linear produce-consumedispose model, supply chains are becoming increasingly interconnected. The waste and recycled wood bioenergy sector is a key example of the kind of business opportunities that emerge when different sectors work together to better manage resource and waste streams. Decision-makers focussing on public sector sustainability and the circular economy need to realise that the feedstocks of the future are already being generated. Now it is just a question of having the right processes and legislation in place to allow diversion from landfill to become the most commercially viable option. These key topics and many others will be featured at RWM 2017 (12-14 September, at the NEC in Birmingham, UK. www.rwmexhibition.com
Making waste wood bioenergy commercially viable is certainly an achievement to celebrate – in order to successfully divert waste wood from landfill sites, a number of variables and partners from different sectors need to come together. This requires high levels of collaboration and communication. But we shouldn’t be afraid of the complexity that is required to collaborate across sectors – we should embrace the business opportunities that are presented by wood waste feedstocks. The UK’s exit from the European Union represents an opportunity for policymakers to create a step-change in our adoption of low-carbon technologies, including biomass. Indeed, businesses, governments and trade associations have all identified the need for an increase in ‘crossover’ to truly achieve a circular
Circular economies
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energy from waste Opinion
Turning waste into energy will take advantage of Britain’s untapped potential post-Brexit Paul Taylor FCC Environment
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s is well-known within our sector, UK waste policy has long been ignored by Westminster and Whitehall. This has meant that the sector’s ability to contribute to the UK’s growth and productivity has been limited, with other sectors edging ahead in the race for increasing competitiveness and resource productivity. With the General Election just around the corner, we are calling for a step change from the next Government. Brexit provides an opportunity to have a frank conversation about boosting the country’s competiveness. How the UK unlocks the value in waste to help support the energy sector should be central to these discussions. Waste is one of a number of policy areas which the UK has ceded almost all control to Brussels. In the
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past, this has meant that there have been limited opportunities for the UK to develop a waste framework that best reflects and addresses the needs of our country. It has also meant that waste has been viewed almost solely through an environmental lens, as oppose to one that is focused on economic competitiveness. Theresa May has made resource efficiency an important part of her political agenda, with the UK’s future economic success reliant on our ability to adapt to a new economic model postBrexit. This means we will have to become more competitive in order to remain a global leader and represents a significant economic opportunity for UK businesses. The Waste Prevention Programme for England notes that inefficiency in the use of resources “results in increased costs to businesses for the purchase of unnecessary materials, and in the costs of disposing of those materials.” Along with this, research by Accenture has shown that there is potential to unlock $4.5 trillion of global growth through improvements in resource productivity.
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This research highlights that if the UK is to focus on resource efficiency, then there are major economic gains to be made, ones that the global economy has also been slow to capitalise on. The Government has specifically identified energy as a key part of its burgeoning ‘Industrial Strategy’ and it also highlighted resource productivity (i.e. reducing the amount that we spend on raw materials and waste management) as a central pillar of the plan. To realise this ambition, innovative thinking will be required around resource efficient energy creation. Prioritising investment in Energy from Waste (EfW) infrastructure here in the UK will be key to achieving this. EfW - burning waste to create clean energy – is well-established within the global waste hierarchy. In northern continental Europe, Scandinavia and Germany in particular, EfW plays a crucial role in domestic energy supplies. However, the UK lacks and established market with EfW suffering from a poor historical image in this country – resulting in low levels of community acceptance; a limited number of plants
ENERGY FROM WASTE
being built and a lack of policy direction from central Government in this area. The lack of a viable EfW market means that the UK is not making the best use of its resources. The current twisted logic means that as a country we are currently shipping our waste to other European countries, where it is used to meet their energy needs. According to a recent Policy Exchange report, published in March, waste management companies spent £280 million exporting our waste to Europe in 2016, which other countries used to produce energy which heated homes and businesses. This is both counter-intuitive and unsustainable.. The UK urgently needs home-grown infrastructure solutions geared towards high-efficiency energy technologies to help our country keep the lights on. Increased investment from the UK government could enable the industry to deliver 50,000 new British jobs and boost UK GDP by an additional £3bn through additional infrastructure. It could also replace ageing infrastructure and address a waste capacity gap of around 20 million tonnes. If this was specifically diverted to EfW plants, it would significantly boost productivity and performance in both the energy and waste sectors. We need a firm commitment from the next government to prioritise EfW as a viable option for our sector. The economic prospects of the country are dependent on new methods of resource efficiency, with Brexit necessitating new and innovative ways of enacting policy. I sincerely hope that the Government will
heed this advice, and boost investment in the high productivity energy technologies
that the country desperately needs. www.fccenvironment.co.uk
Energy Manager Magazine • june/july 2017
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energy from waste Opinion
Top tips on toxic gas treatment to prolong AD plant lifespan
DMT’s Sulfurex® CR desulphurisation technology at a Manchester AD plant
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eveloping an anaerobic digestion (AD) plant doesn’t come cheap. Costs range from £100,000 up to as much as £24m. When calculating their costings and potential ROI, developers often plan for a plant lifespan of 20 years, so it’s essential that plants are well maintained to avoid unexpected expense. This is particularly important as there are a number of things which can adversely affect a plant’s longevity, such as large deposits of grit, the absence of a pressure relief valve, foaming and process instability, for example. In addition, there is an invisible threat to AD plants which, if left untreated, can seriously impact performance, profit and plant lifespan – sulphide.
Sulphide inhibits the AD process Biogas produced through the decomposition of organic matter contains hydrogen sulphide (H2S), a colourless, toxic gas which is one of the main inhibitors of micro-organic growth; if the bugs can’t get to work within the digester to break down the organic matter, then the volume of biogas produced per tonne of feedstock will be dramatically reduced, affecting an AD operator’s profit margins. This is particularly relevant for certain types of plants, as different feedstocks contain different levels of sulphates. Examples of feedstock rich in sulphur-containing proteins include cattle, pig and poultry manure, so on-farm plant operators should be especially vigilant. In
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addition, there is a high sulphate content in wastewaters from the beer and beverage industry. And in the case of sewage AD plants, sulphates present in wastewater lead to the production of sulphide under anaerobic conditions. Concentrations above 6 mg/l of sulphate will start inhibiting the production of methane (methanogenesis) – above 320 mg/l and methanogenesis will be not be possible. H2S also has a strong odour of rotten eggs. If it is not removed, this unpleasant smell is retained within the digestate (the nutrient-rich biofertiliser which remains at the end of the digestion process), causing offence to neighbouring communities and making the digestate impossible to sell to farmers and growers.
Sulphide reduces AD plant lifespan The most damaging side effect of H2S though, is its ability to corrode essential plant equipment – pipes, compressors, storage tanks, engines, etc – and reduce the life of a CHP unit, the heart of any AD operation. The average lifetime of a CHP unit is around 60,000 hours. If it is operated without any desulphurisation technology, the unit will require maintenance after 20,000 hours of operation. However, the introduction of a step to remove H2S can increase uptime by 50 per cent to 30,0000 hours.
Diverse solutions The AD industry encompasses a wide range of plant types and a ‘one size fits all’ approach should not be applied to desulphurisation. Influencing factors including feedstock type, site conditions, plant uptime, CAPEX and OPEX, and end use of the biogas, need to be assessed before introducing a desulphurisation process. H2S can be removed in-situ during digestion by air injection or through the addition of iron salts/oxides. It can also be removed from the raw biogas by physical-chemical separation processes or biotechnological methods (or a combination of the two). For high concentrations of H2S, chemical scrubbers are usually recommended, while for biogas upgrading, activated carbon filters are typically used as a pre-treatment. For
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medium or high loads, alkaline scrubbers are preferred, while upgrading technologies based on physical absorption (such as water scrubbers or non-water sorbents) can simultaneously remove H2S and CO2, but usually require a pre-treatment to achieve low concentrations. Failing that, a post-treatment is required to remove H2S from the exhaust air.
Determining the ‘SSweet’ Spot As well as offering desulphurisation technologies, including a chemical process (Sulfurex® CR), a biological process (Sulfurex® BF), a biochemical process (Sulfurex® BR) and activated carbon for small loads, DMT has developed a system to help AD developers select the best suited desulphurisation technology for their plant. The Sulfurex Selection Work Expert Tool (SSweet) correlates the plant’s gas flow rate and inlet H2S concentration figures to identify the best suited technology from both a performance and financial standpoint. In addition to this, a tailormade business case is generated by considering site-specific conditions (such as electricity price, water price, caustic price, discharge cost or labour cost), and uses a mathematical model to estimate the total cost of ownership. By combining a pre-selection step with a tailor-made business case, the SSweet allows an AD plant operator to select the most suitable technology for their project from both a technical and financial standpoint, preserving the life of their plant – and their profit margins – for years to come. www.dmt-et.com
AD operators use the Sulfurex Selection Work Expert Tool (SSweet) to determine the best desulphurisation technology
Opinion lighting
NEWLEC ‘SWITCHED ON’ TO NEW LED DIMMERS
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ollowing increased demand for LED lighting solutions, Newlec from Rexel has launched a brand new range of LED grid switch dimmers. With light emitting diode (LED) technology being the energy efficient choice to refurbish existing lighting in both commercial and consumer environments, electrical contractors are being increasingly called upon to specify interconnected wiring accessories, such as LED dimmer switches, which can effectively integrate with the LED light source. Yet, despite LEDs being inherently dimmable, the industry has experienced challenges with the compatibility of some early generations of LED lamps with conventional dimmers. Not only did connections prove complex but they also impacted on the long-term performance and reliability of LEDs. Kevin Norman, Senior Product manager at Rexel, explains: “There’s no denying the LED market has, and will continue to, experience huge growth. However, wiring accessories, including dimmer switches, initially struggled to keep up with the pace of LED installations. Electricians
and electrical contractors often experienced challenging installations as a result of trying to align new LED lighting solutions with incompatible control systems, which had the potential to result in reliability problems further down the line.” The latest addition to the Newlec range of grid switch dimmers, has been specifically designed to provide electrical contractors with an LED dimming compatible solution that features variable minimum level pre-set to adjust low level output and stabilise the load. The range offers an easy-fit installation, and comes with nine grid adaptors, also suitable for Euro grid plates, enabling contractors to provide end users with reliable products that generate immediate reductions in lighting energy use, and subsequently, costs. Kevin Norman concludes: “In order to deliver an outstanding solution, we have carried out extensive research, looking at the current trends within the lighting market, and more importantly recent advancements in order to offer our range of Newlec LED grid dimmers. Delivering a well-designed and stable
dimming interface which is critical for consistent light quality and to achieve the reliability needed for domestic and commercial applications.” The Newlec range of LED grid dimmer switches are available in both white and black finishes. For more information, visit your local Newey & Eyre branch or visit www.rexel.co.uk
Bright Goods LED filament lamps illuminate Fuller’s pubs
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ED Eco Lights has announced that Bright Goods LED filament lamps are being installed throughout the Fuller’s managed pub estate to reduce energy and maintenance costs. The project has been designed, managed and delivered by the Light Corporation. Bright Goods LED filament lamps from LED Eco Lights were first installed in The Sail Loft, a newly built Fuller’s pub in Greenwich, in a lighting scheme created by the Light Corporation. The Sail Loft is part of the new Greenwich Reach development, with floor-toceiling glass windows on three sides and a large terrace facing the Thames with views of Canary Wharf, Cutty Sark and the O2 Arena. Its interior takes inspiration from its location, and features nautical touches and maritime bric-a-brac adorning the walls. Tim Henderson, Director of The Light Corporation, said. “We gave the lighting a nautical spin, locating the Bright Goods lamps within basket-style
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lampshades for example. Bright Goods LED filament lamps are in a class of their own for this kind of setting, offering energy efficient LED technology in a warm, retro style that perfectly suited the ambiance of the pub. The Sail Loft is a large open plan site able to seat 300 people – yet the lighting makes it feel intimate especially in the evening.” Fuller’s was impressed with both the appearance of the lights and the energy efficiencies achieved, and contracted The Light Corporation to survey a substantial part of its managed estate of just under 200 pubs, and recommend low energy Bright Goods LED replacements for each light on the premises. Bright Goods LED lamps are also being fitted into existing Fuller’s pubs as they are refurbished and to other new pubs as they are built. Pubs completed include The Tea Merchant, Canary Wharf; The Pilot, Chiswick; The Queen’s Head, Hammersmith; The Hydrant, Monument; The Pilgrim Inn, Southampton; The
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White Hart Hotel, Hampton and The William Walker, Winchester. Commenting, Peter Turner, Property Director at Fuller’s said: “We were very impressed with the appearance of Bright Goods LED lights. They provide illumination that is as warm and welcoming as a filament bulb, maintaining the all-important ambience of the pub in the evening. It is also highly controllable, and can be dimmed as required. It allows us to maintain a traditional feel while reducing our carbon footprint.” Saima Shafi, Sales and Marketing Director of LED Eco Lights added, “Bright Goods LED lamps can in many cases be slotted directly into a fitting to replace the existing filament, fluorescent or halogen lamp, reducing the replacement cost and enhancing the return on investment. In some cases, the energy saving can be as much as 75% - reducing carbon emissions by over 40 tonnes per year.” www.brightgoods.co.uk
Energy lighting Supply
Large companies and public sector can do more to reduce emissions, says Philips Lighting The largest public and private organisations in the UK can do more to reduce their carbon dioxide (CO2) emissions, according to Philips Lighting, a global leader in lighting.
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he company’s analysis1 of the most recent data published by the CRC Energy Efficiency Scheme reveals that organisations included in the scheme emitted a total of over 41 million metric tonnes of carbon dioxide during the 2015/16 period. This is equivalent to the greenhouse gas emissions of 8.7 million passenger vehicles driven for a year, or the CO2 emissions from the electricity usage of 6 million homes for a year2. Yet only a third (32 per cent) of these organisations confirmed they disclose carbon emission reduction targets in their annual reporting, with 15 per cent saying they don’t and over half (53 per cent) refusing to disclose whether they do or not. Similarly, only 29 per cent of organisations disclose their performance against carbon emission reduction targets, with 16 per cent not disclosing their performance and 55 per cent not confirming whether they do or not. Less than half of the organisations reporting to the scheme (45 per cent)
Total CRC emissions by organisation type, 2015/161 Organisation type
Number of organisations
Total 2015/16 CRC emissions (tCO2)
Average of 2015/16 CRC emissions (tCO2)
Company
1,338
30,679,494
22,929
Public Body
496
9,840,260
19,839
Org of Individuals
29
745,874
25,720
Grand Total
1,863
41,265,628
22,150
say they actively engage employees to reduce carbon emissions at work.
Head of Sustainability, Environment, Health & Safety at Philips Lighting.
The CRC Energy Efficiency Scheme is a mandatory carbon emissions reporting and pricing scheme that covers large public and private sector organisations in the UK that use more than 6,000MWh of electricity per year and have at least one half-hourly meter settled on the half-hourly electricity market. The sectors targeted by the scheme generate over 10 per cent of UK CO2 emissions.
“In our sustainability program, Brighter Lives, Better World, we have outlined ambitious targets to be achieved by 2020 including: to be carbon neutral, use only electricity from renewable sources, and send zero waste to landfill. Globally, over twothirds of our electricity now comes from renewable sources,” Kimm added.
Philips Lighting’s analysis reveals that private sector companies reporting to the scheme averaged 22,929 metric tonnes of CO2 emissions last year. To absorb this level of CO2 4,586 hectares of forest would be required; the equivalent of 6,423 soccer fields. The 496 public bodies reporting to the scheme averaged only 13 per cent less, emitting 19,839 tonnes of CO2 during the year. “The CRC scheme was designed to reduce the emissions of those organizations with the largest carbon footprints in the UK, but our analysis suggests that the country’s largest public and private sector bodies still have a long way to go,” said Nicola Kimm,
“Making concerted efforts to improve energy efficiency saves organisations money, improves their reputation and contributes to our climate change mitigation targets.” There are relatively straightforward actions organisations can take that can make a significant difference in a short space of time. With Philips InterAct Office, real estate owners don’t have to rip out and replace existing cabling. The system uses wireless gateways that connect the lamps and luminaires. By combining high-efficiency LED lighting with connected system management, energy savings of up to 70 percent can be achieved. Philips InterAct Office is set to be introduced in the UK later this year. www.lighting.philips.co.uk/home
1 Philips Lighting analysis of the CRC Energy Efficiency Scheme annual report publication 2015/16 2 Equivalents calculated using the Greenhouse Gas Equivalencies Calculator at https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
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renewable energy Opinion
HYDROGEN PROJECT ADVANCES CLEAN ENERGY DEPLOYMENT The successful installation of the hydrogen technologies at the Levenmouth Community Energy Project represents the dawn of a new energy era, according to specialists Logan Energy.
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he Edinburgh-based company has designed, supplied and installed a state-of-the-art hydrogen-based energy storage systems and two mobile hydrogen vehicle refuelling units at Methil, in Fife, Scotland. The renewables industry is becoming increasingly important to energy supply. Scotland has recently produced more electricity from renewables in a single day than it used. However, energy storage is required to match production with demand. Hydrogen is one of the key solutions to this dilemma. Logan Energy believes this project is a turning point in positively proving the case for hydrogen as a key clean energy solution. Hydrogen has been demonstrated at Levenmouth to be a significant resource for both electricity and heat requirements, as well as a sustainable zero emission transport fuel, which can drive the energy sector through the global clean energy revolution. Bill Ireland is CEO of Logan Energy, a hydrogen and fuel cell specialist business which is also responsible for the installation of over 1.1MWe of fuel cell based clean energy technology in the UK. He said: “At the Levenmouth Community Energy Project we have delivered what many visionaries have been talking about for some time and shown that it can be integrated into the existing energy systems for stationary power and transport needs. “The drive for increasing our reliance upon renewable technologies is not new but the economic need to do so, and means to time shift energy, has
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never been more pertinent. The work we have completed at Levenmouth is a true first and highlights the power of hydrogen as a standalone multisector energy resource that also supports existing energy networks. “This is a milestone in the energy sector and marks the practical delivery of a new hydrogen based energy era.” The energy balancing system designed and installed by Logan Energy comprises a 250kWe Proton Exchange Membrane (PEM) Electrolyser, a gas storage arrangement and a 100kWe PEM fuel cell. Coupled with a smart control system, the energy balancing is achieved by generating and storing hydrogen when there is excess renewable energy available. The hydrogen is then used to power the fuel cell to provide power to the private wire network at times when there is insufficient renewable energy being generated. The mobile refuelling units are self-contained modules, based upon ISO shipping container dimensions, so they can be readily transported and easily relocated from site to site. These are used to refuel Europe’s largest fleet of hydrogen hybrid vehicles which includes vans and refuse lorries. Hydrogen is stored at the site and reconverted to electricity at times when on-site wind and solar generation is low, helping to offset the intermittency of renewable energy as well as being compressed and stored for 350bar refuelling of vehicles. Logan Energy will maintain the newly-installed systems for the next five years during which information will be gathered and assessments made on the performance of the
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different technologies implemented. Bill Ireland added: “Seeing just a snapshot of the potential of hydrogen becoming a reality here in the UK is a tremendous step forward. “As world leaders in the deployment of hydrogen and fuel cell technologies in commercial applications, we are pleased to have played a pivotal role in this project which is so important to the integration of the renewables industry in our energy strategy. “The UK, and Scotland in particular, has a wealth of expertise in the energy sector. There is a massive potential to harness the skills and the innovative mindset that drove the growth of the traditional energy sector and bring that to the hydrogen and wider renewables sectors.” With Scottish Government support, Logan Energy has assisted the traditional service industry to develop their existing skill sets to support this rapidly growing sector and, on the back of new global projects, the company is set to build on this knowledge base. Logan Energy was founded in 2005 and has a vast amount of experience designing, installing, commissioning and maintaining fuel cell and hydrogen energy systems in the UK and Europe. Levenmouth Community Energy Project comprises Bright Green Hydrogen Ltd along with Fife Council, Toshiba, Leven Valley Development Trust, Fife College, BOC (for hydrogen transport), Green Business Fife, Community Energy Scotland, and the Scottish Hydrogen and Fuel Cell Association (SHFCA). www.logan-energy.com
renewable energy
First domestic ground source heat pump in the East to benefit Flagship customers
The first installation of a communal ground source heat pump for domestic use in the East of England by housing association Flagship Group, is set to cut its customers’ heating bills by hundreds of pounds a year.
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he system at Watton, South Norfolk, was installed ultimately to improve the quality and affordability of customer heating systems and living conditions in the 30 flats at Orchard Close. Previously, the residents at Orchard Close had electric economy 7 storage heaters which were inefficient and expensive to run. The new system, which draws energy from the earth, will not only cut people’s energy bills by two thirds, but it also results in zero carbon emissions. Customers started using the system in April, and although it is communal, each home is individually metered and customers are only charged for the energy they use. The installation qualifies for the Renewable Heat Incentive (RHI), a Government scheme which assists with the project’s capital cost allowing Flagship to roll out the much-improved heating system into other homes in the future. Strategic Director for Asset Management at Flagship, Stuart
Longbottom, said: “Ground source heat pumps are a low maintenance, sustainable way of heating our homes which are a fantastic solution for our customers. We are committed to continually improving our renewable energy sources to help tackle fuel poverty and reduce our carbon footprint, and this system does that. Capital investment by Flagship as well as the RHI provides a positive and sustainable return for us and our customers.” Renewable heating experts Finn Geotherm worked in partnership with Aaron Services Ltd to install the system. Finn Geotherm’s Commercial Director Guy Ransom said: “I’m delighted that Flagship have decided to use the technology for their customers. Heat pumps are a well tried and tested technology. Finn Geotherm have been installing systems in the UK, in all kinds of properties, for more than 10 years. The systems themselves are made in Finland where they experience extremely cold weather conditions, so we know how efficient it can be. Ground source
heat pumps are extremely reliable as they should last for more than 30 years. This provides additional reassurance for Flagship and their customers.” The system is also connected to the Finn Geotherm offices which allows it to be monitored wirelessly to see how much heat is being used.
Key benefits of the project include: • • •
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Reduced energy bills – immediate and long term Zero CO2 Encourages customers to heat their homes, positively impacting on their health – reduction in damp and improved air quality Low maintenance requirements – cost and frequency Less intrusion for customers as equipment is stored in an external Plant Room Lasts three times longer than a conventional boiler www.finn-geotherm.co.uk.
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exhibition news
TOP 7 ENERGY SAVING STRATEGIES COVERED AT EMEX 2017 UK energy efficiency’s movers and shakers meet at The Energy Management Exhibition (EMEX), the largest business focused event taking place this year on 22-23 November at ExCeL in London.
The top 7 Energy Saving Strategies covered at EMEX are: Optimising Costs Through Sustainable Operations Energy Management is already a wellestablished part of the corporate and social responsibility (CSR) and sustainability agenda. Businesses committed to safeguarding their reputation for corporate responsibility – and the commercial value attached to that – have no option but to meet the challenge of developing sustainable operations.
Saving Energy through People Latest developments in behavioural change can help your business to engage with your staff so they become active players in reducing significant operating costs while improving sustainability credentials. All of this can be achieved with no capital outlay and no interruption of day-to-day business.
Reducing Energy Use in the Built Environment
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MEX, The Energy Management Exhibition which takes place on 22-23 November at Excel in London, is the must-attend event for everyone wanting to increase their organisation’s energy efficiency and take a positive step toward sustainability. A two-day jam-packed event programme offers valuable industry insights, and looks at the latest innovations, megatrends, upcoming legislative changes, skills gap and how these are affecting UK businesses in the UK – all key to understanding the risk, regulation and opportunities of being an energy consumer. Introducing the 2017 edition, Lord Redesdale, CEO, Energy Managers Association, co-organiser of EMEX said: “Energy continues to have a disproportionate effect on private and public sector operational costs. Every board need to understand the risks of not taking energy management seriously. EMEX will put forward the solutions.” EMEX makes available exclusive content; case studies, expert presentations and panel sessions all covered within four educational seminar theatres: 1. Knowledge. Skills and Experience. 2. Water and Energy Strategy. 3. Facilities, Technology and Innovation. 4. Renewables, Supply and Storage. Expert speakers will cover key issues affecting the energy industry right now and those that will affect us in the very near future. All sessions are free to attend and CPD accredited. Register today
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In 2012, direct buildings emissions (mainly from the use of gas for heating) accounted for 37% of UK greenhouse gas emissions (91 MtCO2). Buildings were responsible for 67% of electricity consumption and related emissions. With tougher UK regulations and a limited energy supply, this area should be a high priority knowing that both the expense is significant and that a badly managed indoor climate can have very negative effect on occupants’ well-being (e.g. reduction in productivity, increase of sickness absence). EMEX will showcase the main energy saving opportunities relating to building controls and reveal how major energy users in public and private sectors have saved energy, cut costs, reduced C02 footprint and increased comfort for building occupants.
Capturing the Full Benefits of Demand Flexibility The UK is entering a period of energy transition. The main forces driving this transition are a growing consensus about the scale and importance of climate change, the need to ensure secure energy supplies for the UK in the face of rising global demand and an ageing and centralised grid. There is an urgent imperative to re-shape policy in order to decarbonise the energy we use, evolve infrastructures and to secure sustainable local generation supplies for the long term. Demand-side response, a scheme in which customers are incentivised financially to lower or shift their electricity use at peak times,
Energy Manager Magazine • june/july 2017
is changing the dynamics of the UK energy market and offering new and exciting energy management opportunities for businesses. Power Responsive (National Grid) is launching the Flexible Power Zone at EMEX, an area fully dedicated to providing visitors with knowledge and expertise around the business opportunities offered by demand flexibility, local energy generation, renewable and battery storage.
Increasing Renewables in your Energy Mix Renewables now account for 25% of UK electricity generation, which is up from 9% in 2011. Switching to renewables and green-tech is a substantial and yet untapped opportunity for most businesses to reduce costs and meet carbon emission target rapidly. Alternatively, instead of buying all of your energy from suppliers, you can install renewable technology (also called micro generation) and lowcarbon technology to generate your own.
The UK Water Market Deregulation Since April 2017, over 1.2 million eligible businesses and other non-household customers in England can choose their supplier of water and wastewater retail services. This is the most radical change in the water industry for a generation and yet, large multisite water users are not fully embracing water efficiency and billing simplification opportunities offered by this new market. EMEX will host a debate between waters users and retailers to address current challenges and tackle the most common and important issues.
Developing your career & improving your skills in Energy Management EMEX is offering a series of seminars to address the needs and the requirements of all energy users, not only for those whose full or part-time role is managing an organisation’s energy. With so much in the way of solutions, knowledge and expertise on offer, it is not surprising that Coca-Cola, NHS, British Airways, Harrods, Hilton Worldwide, Boots, RBS, TATA, British Land, Ministry of Defence, AstraZeneca, Sodexo, Dixon Carphone, IBM, Bellrock, Co-Operative Group, Ofgem, Network Rail, MITIE, CBRE, Whitbread, British Telecom, House of Fraser and many county and city councils are already registered to attend.
exhibition news
Scotland’s largest public sector supplier event to be held on 28th September at Hampden Park, Glasgow Major UK bodies announced to attend Supplier Development Programme’s “Meet The Buyer” 2017
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ver 40 public sector bodies from across Scotland and the UK will meet in Glasgow this autumn for the 9th annual “Meet the Buyer” event hosted by the Supplier Development Programme on the 28th September at Hampden Park. The event will be partnered by Scottish Government, Scotland Excel and Business Gateway. 28 Scottish Local Authorities, the Ministry of Defence, DfID and Crown Commercial Services are among the 70+ organisations confirmed to exhibit the event, which will see over 1,000 Scottish companies descend on Hampden Park Stadium in Glasgow for a day of networking and procurement training. Buyers from NHS National Services, Scotland Excel, Transport Scotland and over 15 private sector buyers with potential sub-contract opportunities will be in attendance, giving suppliers the opportunity to speak to directly to buyers about their procurement processes and contract opportunities. The event is aimed at Scottish SME’s (small to medium sized businesses) who are interested in supplying to the public sector. Gillian Cameron of the Supplier Development Programme said, “The event is on course to continue to be the largest public spend event hosted in Scotland, affording businesses: particularly SME’s a truly unique opportunity to network and connect and hear the latest news on how they can grow their business through public sector tendering and the wider supply chain - all under one roof”. In addition to networking opportunities the event will feature presentations and seminars from Google Digital Garage, Infrastructure and Projects Authority, Co-operative Development Scotland and Crown Commercial Services, as well as practical workshops on how to write a successful tender.
Scott Bell, Head of Procurement Reform Integration at the Scottish Government said ‘The Scottish Government recognises that SMEs are critical to the economic health of the country and we want them to thrive. Much is being done to ensure they can continue to compete for and win public contracts. Last year’s event showed there was great appetite from businesses to tender for public contracts with nearly three quarters of the thousand plus delegates coming from Scottish SMEs. There was hugely positive return - 97% - on the value of the day, and this annual event provides a great opportunity for SMEs to have face to face contact with procurement experts across the Scottish and UK public sector.’ Julie Welsh, Director of Scotland Excel, said: “As the national centre of procurement expertise for local authorities we are delighted to be partners in this Meet the Buyer event. It’s a fantastic chance for Scottish companies to speak directly to over 40 public sector organisations, including Scotland Excel, to find out about business opportunities and the tender process. We are always working to make sure Scottish businesses – including SMEs - are aware of the extensive contract opportunities that exist within the public sector, and this event will help us to continue to drive this forward.” Hugh Lightbody, Chief Officer at the Business Gateway National Unit, added: “Every year we support thousands of businesses across Scotland as they look
to upskill and identify new opportunities to grow their ventures. Public sector procurement is an important part of the new business mix for many companies and there is no doubt events like Meet the Buyer play a key role in helping these growing businesses maximise the opportunities available.” This is the first year the event will include a dedicated Social Enterprise zone, hosted by the newly launched Partnership for Procurement (Supporting Scotland’s Third Sector) hub; with bespoke support on effective partnership and consortia bids available for Social Enterprise. Pauline Graham, CEO at Social Firms Scotland said, “We are delighted to showcase social enterprise in Scotland as part of Meet the Buyer this year since the Scottish Government has now launched a 10 year strategy for the sector with a key priority being to realise market opportunities for social enterprise. The aim of our newly launched Partnership for Procurement Hub is to provide the necessary support that social enterprises need to compete effectively for public contracts, and having a dedicated Social Enterprise Zone will provide an excellent opportunity to connect the supplier community with buyers across the public sector”. For more information about the event visit http://bit.ly/sdpmtb17 For more information about the Supplier Development Programme visit www.sdpscotland.co.uk
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legislation
Comply, control, analyse and save with Energise
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nergise is launching its new services portfolio focusing on the four critical stages of energy management – compliance, control, analysis and costs – to create a joinedup approach for its customers. Energise’s accredited and awardwinning team can help its customers to comply with current and future legislative requirements. Using its expertise and in-depth understanding of governmentled schemes in areas such as carbon reduction, carbon reporting, climate change agreements, heat network regulations and EPCs/DECs/TM44 inspections, the company is committed to maintaining a
100 % compliance record for its clients. Controlling utility use and building management is crucial to achieving better energy management. The company can assist in gathering information from multiple sources – including CO2 and water – providing flexible, innovative and accessible solutions to ensure full visibility. Reliable data and accurate analysis are key to making the right decisions, which is why Energise prides itself on creating engaging and easily digestible reporting systems for remote energy audits, GHG reporting, data visualisation, gap analysis and invoice validation, renewables feasibility and building services engineering.
All this is designed to help clients save on utility bills and identify where additional savings can be achieved. From tailored engagement and awareness programmes to a fully managed service, Energise’s expert team can develop a package to suit your business requirements and deliver the results you need. For more information, please contact: Energise Ltd. Knowledge Centre, Wyboston Lakes, Wyboston, Bedfordshire, MK44 3BY Tel: 01480 479356 Email: support@energiseconsulting.com www.energiseconsulting.com
2018 Energy Performance Certificate (EPC) Standards: One Year to Go
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From 1 April 2018, let properties need to have a minimum Energy Performance Certificate (EPC) rating of E.1 Ian Tyrer, Head of Sales - Energy Finance, Siemens Financial Services, explains why commercial landlords should act now and examines some of the flexible financing models available to help.
here is now less than a year to go before the new legal standard for minimum energy efficiency applies to rented commercial buildings. The Minimum Energy Efficiency Standard (MEES) Regulations, which originate from the Energy Act 2011, mean rented buildings must have a minimum EPC rating of E unless the landlord registers an exemption. After 1 April 2018, commercial landlords of buildings within the scope of the regulations must not renew existing tenancies or grant new tenancies if the building has a rating less than the minimum requirement.2 Measures therefore have to be taken to improve the energy efficiency of these buildings, otherwise a fine of up to £4000 could be incurred.3 Whilst the costs associated with this change may be a concern for commercial landlords, they should not assume that a large capital expenditure is necessary to make their properties more energy
efficient. Viable financing options for energy improvement measures are available in today’s market. Such arrangements typically make a practical connection between the expected savings in energy costs and/or income from energy generation and the f monthly payments made as part of the financing arrangement. Landlords can therefore benefit from a financing solution that can make the investment in energy efficiency solutions and technology zero net cost or even cash positive if the energy savings are greater than the monthly financing payment. Once the energy saving equipment or technology has been paid for, landlords have the option of either increasing their margin or passing the savings to tenants, and consequently making their rental proposition more attractive. A wide range of technologies, including heat pumps, LED lighting, biomass heating,
1 Residential Landlords Association (RLA), ‘Minimum energy efficiency standards’, http://www.rla.org.uk/landlord/guides/minimumenergy-efficiency-standards.shtml
2 Burges Salmon, ‘MEES: a guide to the minimum energy efficiency standard for commercial buildings’, 10 March 2017 https://www.burgessalmon.com/news-and-insight/legal-updates/
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anaerobic digestion and biogas facilities, as well as combined heat and power facilities and wind power, can be financed in this way. Payments can be customised to suit each client’s requirements and budgets, meaning that commercial landlords can focus on finding the best solutions for their premises without capital budget restrictions. Additionally, existing lines of credit and working capital are preserved for other business activities. With this obstacle removed, there is no reason why landlords should not take action now to ensure their premises are ready to meet the requirements. The Energy Act is putting pressure on landlords to ensure that their properties are energy efficient. Contrary to popular belief, investment in energy efficient technology need not require a large capital outlay upfront and there are solutions available to link energy savings to the finance payments for the technology. Specialist financing models enable commercial landlords to fulfil the legislation while maintaining their financial liquidity. Landlords are required to comply by April 2018, but by acting sooner, they can benefit from the potential paybacks from the use of the technology and the associated energy savings earlier. www.siemens.com/uk/en/home/ products/financing.html a-guide-to-the-minimum-energy-efficiencystandard-for-commercial-buildings/ 3 Ibid
product showcase
RINNAI LAUNCHES INTO THE COMMERCIAL BOILER MARKETPLACE
Rinnai has launched new products into the commercial gas-fired boiler marketplace with an initial introduction of three condensing models.
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he new boilers, Germanmanufactured to high specification in materials, build and components are built to last and offer high quality construction and engineering alongside top of the range energy efficiencies. The Rinnai Infinity condensing boiler range is available for natural gas and LPG operation and comes with innovative controls maximizing energy efficiencies through class-leading weather compensation technology. The Infinity boiler is A rated under the ErP directive, meaning customers can make an informed decision when purchasing. The Rinnai Infinity condensing boilers come in 50kW, 75kW and 100kW versions and are both maintenance and installer friendly. The appliances are accessed from the front and require minimal space for installation, thus helping to reduce
cost and time required on site. Some of the units also feature a fully removable pivoting heat exchanger and burner for easy inspection and cleaning. New combustion control technology also imbues the units with the capability to self-calibrate so avoiding manual setting and automatically adapts to suit the gas quality. The boilers also offer a range of ancillary options including pressurisation units, manifold pipework assemblies, mounting frames, heating system separators, boiler and water heater combination packs, ancillary control options, external temperature sensor and advanced boiler controls. The 50kW, 75kW and 100kW versions all have an efficiency of 93%. The CGB-50 measures 855mm x 440mm x 393mm, while the CGB-75 and CGB-100 both
present at 1020mm x 565mm x 548mm. For more details on RINNAI products visit www.rinnaiuk.com
ENERGY EFFICIENT AURA ZURRO REDUCES CARBON FOOTPRINT
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ura Light has introduced the Zurro to its family of lighting products, a compact and durable universal luminaire designed for demanding applications. The Zurro is ideal for car parks, warehouses and industrial areas that require sealed luminaires of IP65 class and is made with high quality components to ensure reliability during its lifespan. It can also be installed in commercial kitchens, sports facility changing rooms, general warehousing and plant rooms. The ‘chip on board’ LEDs are very energy efficient, which together with high quality components reduces its lifetime cost, and lowers carbon footprint. Like many energy efficient lighting solutions from Aura Light, it is covered by a five-year guarantee. The Aura Zurro is energy efficient up to 118 lm/W with more than 8000 lumens output. It is classed as low maintenance, features breathable gland technology and
the body is made from impact resistant polycarbonate. It can be surface mounted or installed on catenary wire and is Aura Light has introduced the Zurro to its available as family of lighting products, a compact and either a single durable universal luminaire designed for or twin fitting. demanding applications. The Zurro is ideal There for car parks, warehouses and industrial are eight areas that require sealed luminaires of IP65 Aura Zurro class and is made with high quality components to ensure reliability during its lifespan. luminaires and with integral emergency lighting. in the Further information is available range, these being 4000K single and from Aura Light on 01952 250800 by 5000K twin fittings in 25W, 30W, 52W emailing: simon.taylor@aura-light. and 65W versions. The luminaires can co.uk or by visiting the company’s also be specified as DALI dimmable website at www.aura-light.co.uk
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THE 2017 MUST-ATTEND EVENT
IN PARTNERSHIP WITH:
FOR EVERYONE WANTING TO INCREASE THEIR ORGANISATION’S ENERGY EFFICIENCY AND TAKE POSITIVE STEPS TOWARDS SUSTAINABILITY.
EXCEL LONDON W 22 nd —23 rd NOVEMBER 2017
REGISTER FOR FREE TO GAIN FULL ACCESS TO
140+ LEADING SUPPLIERS, 80 SEMINARS / TRAINING SESSIONS
www.emexlondon.com