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Helping the Public Sector Save Energy and Costs Alan Little from STC Energy discusses how further reductions in cost and consumption can be made within the public sector

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June 2016 www.energymanagermagazine.co.uk

Helping the Public Sector Save Energy and Costs

Helping the Public Sector

Alan Little from STC Energy discusses how further reductions in cost and consumption can be made within the public sector

Save Energy and Costs

Intelligent & Transparent Energy Services

See Page 16

JUNE 2016 INSIDE THIS ISSUE:

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ENERGY MANAGER MAGAZINE

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HVAC Infrastructure for modern healthcare delivery and patient wellbeing

Quarry

District Heating Network Completes at £330m Campus

Bank Mill Estate

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Reducing the hidden cost and carbon of ICT

Inspirational new architectural luminaire from Aura Light

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Five ways to boost boiler house efficiency

Venture Lighting Europe’s energy saving retofit corn lamps now available

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Energy Manager Magazine • June 2016




News

Ameresco Boosts Public Sector Offering with Framework Wins

Local authorities, health services and housing associations can achieve up to 30pc savings each year with Energy Performance Contracts

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meresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable energy company, announced today that Ameresco UK has secured a place on four key frameworks after targeting the public sector as a major area for growth. The frameworks – which between them include procurement services for the whole UK public sector, including NHS trusts, central government, housing associations and local authorities – are: Re:Fit; The Carbon & Energy Fund (CEF); Scottish non- Domestic Energy Efficiency Program (ScNDEE); Yorkshire Procurement Organisation (YPO) CHP Framework. The frameworks will use Energy Performance Contracts (EPCs) to secure funding for investing in new and improved energy efficiency systems and technologies. Typically each contract through the framework will be looking at achieving between 15pc and 30pc in energy savings every year. Through the process, Ameresco will have the opportunity to identify, design and implement a range of cost and energy and carbon saving measures such as lighting, heating, ventilation and cooling (HVAC), control systems and where appropriate renewable technologies. Ameresco UK will then guarantee the savings for the duration of the contract and report savings through a robust monitoring and verification program. Britta MacIntosh, VP of UK Operations London, said: “This is a significant and

strategic move for Ameresco UK. Six months ago we had a minimal presence in the public sector in the UK. With a position on the frameworks for EPCs targeting the public sector, we intend to be very active in identifying and pursuing the right opportunities. “Ameresco has been built on a foundation of robust engineering expertise and experience, combined with an objective viewpoint – as an independent energy services provider we are not restricted by any ties and this helps us to get the best energy and cost savings for clients. We understand the risks and opportunities, have the capacity to support savings assurances, and where necessary help to secure the funding for our recommendations.” Ameresco has worked on a wide range of multi-million dollar public sector projects within the US, with clients including the Federal Government, municipalities, schools and public housing authorities. The company is now looking to use its wealth of experience and expertise to support organisations in the UK. Ms. MacIntosh said: “The public sector is under increasing pressure to cut spending, while also meeting specific carbon targets. There are realistic and measurable ways to achieve this and EPCs provide a secure, cash positive solution to improve energy efficiency. “For many organisations such as NHS trusts and local authorities, a lack of funding

has meant that energy equipment has not been fully maintained. EPCs will help relieve the backlog maintenance issues, unlocking funds to replace or update facilities and significantly enhance energy efficiency. “The EPC model guarantees an amount of energy savings over a specified period of time. Therefore organisations achieve a cash positive benefit from year one, and once the contract is fully-paid they enjoy the full savings for the lifespan of the technology.” The Re:Fit framework works with a wide combination of bodies including local authorities, health and education services across England and Wales. The CEF was launched in 2011 to fund and facilitate energy upgrades for the NHS and wider public sector. ScNDEE is a new framework particularly aimed at local authorities and universities across Scotland. The YPO framework gives authorities in England and Wales access to a range of services, including energy related. Unlike the others, the framework is not based around EPCs, but has been created to give organisations such as hospitals and leisure centres fast and efficient access to quality Combined Heat and Power (CHP) services. www.ameresco.com

THE HEAT NETWORKS INVESTMENT PROJECT - UPDATE FROM DECC

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he Department of Energy and Climate Change has been continuing to gather evidence and information to inform the design and delivery of the £320m Heat Network Investment Project (HNIP). In recent months, we’ve been engaging with key stakeholders by attending a range of heat network-related events and hosting a series of informal interviews. We are now planning two larger stakeholder events to consolidate views on the design of HNIP,



one in London and one in Newcastle, both in July. More details on these will follow. Please let us know if you would like more information about these events by emailing: heatnetworks@decc.gsi.gov.uk. We are now in the ‘purdah’ period running up to the EU Referendum during which there are restrictions affecting our participation in public consultations and at wider public events. We will have more information after the EU Referendum.

Energy Manager Magazine • June 2016

We are very interested in collecting project financial data for both existing schemes and schemes in the pipeline so that we can more effectively model the impact of different types of investment support. Please let us know if you would be happy to share this sort of information for your projects on a confidential basis via heatnetworks@decc.gsi.gov.uk


News

ESPO helps public sector buyers drive down energy costs with new electricity framework

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SPO, the UK’s largest public sector buying organisation, has announced a four-year electricity framework (2016-2020) that will enable local authorities, central government, NHS, schools, police and fire & rescue services and other public organisations, to achieve an initial annual saving of approximately 5% on their electricity procurement costs. In contrast to public sector buyers negotiating electricity supplies amid volatile market prices, ESPO’s new contract is based on a pre-agreed, fixed ‘supplier margin’ for the full four-year contract duration; this is a direct result of ESPO, as a large purchaser, being able to take an aggregated and risk-managed approach to negotiations with suppliers and so return greater value to customers. ESPO’s new framework, awarded to energy supplier Total Gas and Power, will deliver overall savings of £4.7 million over the four-year period on the current framework supplier’s service costs and other associated fees, which can be passed on to ESPO’s customers on the framework. The new framework offers a series of innovations to make energy buying process

simpler and safer for public bodies’ procurement teams: • Contract invoice rates are fixed at the 1st October price for each of the contract’s four years but public sector buyers can sign up at any time from now onwards in readiness for the framework • ESPO’s agreement gives procurement departments a quick, easy-to-use and EU-compliant way to buy electricity or to switch from their existing supplier; public buyers don’t need to run a complicated and time-consuming supplier tender for a new electricity supply contract, because ESPO has already completed all necessary procurement and legal processes • Unlike ‘let and forget’ energy supply contracts, ESPO provides dedicated account and billing managers, to answer queries or deal with administrative aspects such as supply point administration, portfolio management and price validation • ESPO’s framework also gives buyers access to technical support services, including automated meter reading

Public sector buyers can achieve savings on their electricity prices (AMR) and new meter connections, assisting procurement or estate managers that may be assuming responsibility for a new property estate or want to be able to audit and monitor energy costs over time. Chosen supplier Total Gas and Power met all ESPO’s assessments in respect of financial stability, track record, experience, electricity supply licence, and technical and professional ability, before being awarded a place on the framework. Andrew Stanford, Procurement Service Manager – Energy, ESPO, said: “ESPO has used its energy market expertise and buying power to deliver attractive savings for public procurement teams, despite energy price volatility. Our framework makes buying simpler, quicker and EU-compliant for buyers - terms and conditions are all pre-agreed under the framework and there’s advice and support throughout the contract from our dedicated account managers.”

SoLa Bristol shines a light on battery storage technology

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consortium of partners today celebrated the completion of a successful energy innovation trial that helped 26 homes, 5 schools and an office block in Bristol reap the rewards of more efficient renewable energy. The £2.8million SoLa Bristol project trialled battery storage devices, charged by rooftop solar PV panels in the Knowle West based council-owned homes and work buildings. Participants were able to store power generated by the solar panels during the day to then use the electricity when it was needed to power a DC lighting system. They also benefited from a ‘Smart Tariff’ deal, allowing them to earn money by exporting their stored energy at peak times onto the electricity grid, reducing their peak energy demand. Bristol-based Western Power Distribution (WPD) partnered with Bristol City Council, Siemens, the University of Bath and Knowle West Media Centre to deliver the project, which came to an end in March 2016. It was designed to address the technical constraints that WPD has experienced as the distribution network operator (DNO) in Bristol, where the uptake of solar panels has been high.

The project found that demand side response and customer variable tariffs can be very beneficial for both customers and DNOs but maintaining engagement is absolutely crucial to success. Equally, future projects must ensure that they tailor their approach to make the battery storage technology work for each customer – a ‘one-size-fits-all’ approach simply does not work. Bristol Futures Director at Bristol City Council, Stephen Hilton, welcomed the project. He said: “Projects such as SoLa Bristol demonstrate that Bristol is continuing to lead the way towards a decarbonised, resilient, and community-led energy system following its year as European Green Capital. Bristol City Council is committed to working with residents, such as those in social housing, who can benefit the most from innovative technologies and services. It has been invaluable to work with community organisations such as Knowle West Media Centre to make engagement with these innovations fun and meaningful for those involved.” Roger Hey, Future Networks Manager for WPD said: “We are really pleased with the

results of this project and enormously grateful to our project partners and the Knowle West community for their time and efforts supporting SoLa Bristol. “Tonight’s Innovation Reception has been a great opportunity to share our invaluable findings from the project with the rest of the energy industry. We are hopeful that others can now exploit the learnings to inform their own projects and move closer to a smarter energy system.” Professor Furong Li from the University of Bath said: “The SoLa Bristol systems continue their life at the Smart Grid teaching and research Laboratories at the University of Bath, providing immediate benefits to students and researchers from over 50 countries. This is the perfect platform for the University to continue with the successful path already established by the SoLa Bristol Project. New ways of managing, trading and supplying electricity with increasing supply from local communities will be investigated, ensuring communities can benefit from low energy bills, low carbon emissions and high returns from community energy.”

Energy Manager Magazine • June 2016




News

UK’s first council solar bonds success marks new way for local authorities to fund green infrastructure

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he UK’s first ever council solar bonds, issued by Abundance and Swindon Borough Council, have sold out a month early, setting a benchmark in innovation for local authorities to fund renewable energy and other infrastructure projects and boost the green economy. Swindon Community Solar Farm is the UK’s first solar farm funded jointly by a borough council and bonds sold directly to members of the public. The bond offer, structured by leading peer-to-peer investment platform Abundance, opened on 24th February and closed yesterday, a month earlier than scheduled, after reaching its £1.8 million target. Swindon Borough council is co-investing £3 million to build the 5MW solar farm on council-owned land at Common Farm, Wroughton, near Swindon. Bruce Davis, Managing Director, Abundance, said: “The success of this investment offer has really set a standard for local authorities looking to fund green infrastructure. We’ve had lots of inquiries from other councils interested in following Swindon’s pioneering lead. Energy is one area where local authorities have the power to make a difference, engaging and enabling their residents to take positive action and invest in a more sustainable

future. We’d also like to see them going beyond solar and fund other infrastructure projects this way.” The investment was structured to be open to anyone with a minimum of just £5 and offered an effective rate of return of 6% over its 20-year term. During the 3-month offer period it attracted an average of £18,000 in investment per day with one-third coming from the Swindon area. Councillor Dale Heenan, Swindon Borough Council Cabinet Member for Transport and Sustainability, said: “We took a bold decision to create this community solar farm by offering the first council bond direct to the general public in over 100 years. It was a calculated risk to raise £1.8 million this way, but we knew there was an appetite from residents to invest in something with genuine environmental and community benefits. The fact that we’ve hit the target four weeks early proves how successful this project has been. “All councils need to find new and innovative ways to fund the vital work that they do for their communities, and Swindon now has a template which other local authorities can follow. Embracing renewables will help Swindon Borough Council raise £1 million more in business rates and rent by 2020, which means £1

BSRIA ASKS:

million more every year which can be spent on important local services.” Construction has already started and the solar farm is due to be completed by the end of June. The solar farm will help Swindon in its aim to install 200MW of renewable capacity by 2020, enough to meet the equivalent energy requirements of every home in the Borough. A Community Interest Company, wholly owned by Swindon Borough Council, will manage it. Sixty-five per cent of the distributable profits from the solar farm will go towards funding local community initiatives, with the remaining 35% going to the Council. Revenues will be raised from selling the electricity generated, as well as support from the Feed In Tariff subsidy (FIT). The solar farm was pre-accredited for the FIT before government policy changes at the start of the year. The Swindon Community Solar Farm was developed by Public Power Solutions, who structured the blend of public sector and community investment. It was given planning consent though Swindon Borough Council’s use of Local Development Orders, which speed up the planning process but still allow full public consultation.

DO SMART METERS STILL MAKE SENSE?

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SRIA has commented on the take up and value for money of smart meters being fitted in UK homes. DECC’s (Department of Energy & Climate Change) own figures suggest that at the end of 2015 only 2.3 million meters were deployed in smart mode of some 51 million due to be installed by end 2020. Julia Evans, Chief Executive, BSRIA, said: “This suggests a mountain still to climb, doubtless accompanied by avalanches of controversy about concerns both real and imagined – including costs and data protection.” A report in April by the IoD (Institute of Directors) advised that the UK smart meter rollout be halted and re-evaluated. The main concern of industry is that the current generation of meters were not fit for purpose and that the government was



pressing ahead with a very aggressive rollout schedule while testing and evaluation were still ongoing. With technology evolving so fast – especially where smart access – from devices, phones etc – and smart appliances are concerned, it is going to be difficult to “pin this down to everyone’s satisfaction”. Another interesting report from the EU highlights that of 27 countries that signed up to the original 2009 commitment to have smart meters rolled out to over 80 per cent by the end of 2020 only 17 claim to be on track, and the UK is one of only nine that expect to reach 100 per cent. However, should the UK vote to leave the EU, then all this might be academic. Although the scheme is pretty much down to the individual governments to implement as they please.

Energy Manager Magazine • June 2016


News

SSE to deliver assured energy savings with premium Energy Performance Contract offering

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eading energy firm SSE is at the forefront of optimised energy performance for public and private sector customers with its new Energy Performance Contract (EPC) solution. An EPC is a partnership based approach designed to assist public, private and third sector organisations upgrade the energy and water assets of their buildings, minimising carbon emissions and significantly reducing operating costs. The contract guarantees the amount of energy savings forecasted at the outset, the value of which typically means that the resulting cost savings will be enough to fully cover the outlay without an upfront capital investment by the client. The energy and water conservation measures are tailored to suit the specific needs of individual clients and include a host of low and zero carbon technologies such as efficient heating, ventilation and air condition equipment, LED lighting, combined heat and power (CHP), renewable generation, building energy management systems, smart metering, and water saving technologies.

The EPC functions as an end-to-end product; from an initial assessment report and building audit, to full project management including design, installation and commissioning, to ongoing local maintenance and measurement & verification support provided via a long-term energy performance partnership, typically contracted for 5 to 15 years or longer. SSE is one of a select group of energy service companies to be fully accredited by the two public EPC procurement frameworks, RE:FIT and the Scottish Non-Domestic Energy Efficiency framework. Suppliers on the framework are chosen for their excellence in providing energy efficiency and generation measures. Since its inception, the RE:FIT framework alone has engaged over 250 organisations to procure £165 million of works across more than 700 buildings, with a growing pipeline over £65 million and typical annual savings of between 15 - 30% for individual clients. EPCs contracted by SSE will be operated under its wider Enterprise function. SSE Enterprise employs a dedicated Energy

Performance team and over 2,000 engineers and technicians with a track record of delivering energy solution partnerships across the public and private sector. Clients include Glasgow City Council, Scottish Courts and the London Aquatics Centre. SSE Enterprise also operates Slough Heat and Power, which supplies essential energy services and on-site generation to the Slough Industrial Estate, one of Europe’s largest mixed-use business parks. As a responsible energy provider, SSE is the only FSTE 100 Company to be endorsed with the Fair Tax Mark and was the first Living Wage accredited energy company in the UK, a commitment which SSE has extended to its £2bn a year supply chain. SSE has also partnered with Waterwise, the leading authority on water efficiency in the UK and Europe, recognising increasing customer interest in sustainable water supply. Customers of SSE Enterprise can therefore be reassured that they are working with a company that is industry-leading in terms of responsible business practice.

Energy Manager Magazine • June 2016




News

CONFIDENCE OF UK ENERGY EFFICIENCY SECTOR AT LOWEST IN FOUR YEARS

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upply-side confidence in the UK’s energy efficiency sector has hit a four-year low. The latest issue of the UK Energy Efficiency Trends report (Volume 15, published today) shows confidence dropping in the first quarter of 2016 by four points, dipping into the red for the first time since publication commenced in 2012. High efficiency lighting suppliers can however take comfort from the report’s consumer respondents as they highlighted a 14-point increase in the uptake of lighting technologies in Q1 2016 over the previous four quarter average.

Market trends overview

Supply-side confidence has declined four points and is at its lowest point since 2012, predominantly resulting from a fall in national orders and the government’s management of energy efficiency policy. High efficiency lighting is still growing in popularity and has been included in eight out of 10 energy saving projects. The long term trend of lower capital cost projects continued with a median spend of c£47k per project, the lowest level during the four-year reporting period. The median payback period has tightened further, now standing at three years. Volume 15 of the Energy Efficiency Trends report assessed consumer and supplier market activity in the first quarter of 2016 (January - March). The report is a tale of two sectors: supply-side graphs evidence a decline in market and government confidence. The market monitor, which combines trends in supplier order books, staffing levels, sale prices and government action, fell by 21 points to -4. The decline was largely the result of a continued downward trend in national orders (Fig 3, see full report). Overseas orders also fell slightly, echoing overseas Q1 experience in all previous years (Fig 4, see full report). Both staff numbers and sale prices were relatively stable (Fig 5 and 6, see full report) but confidence with regard to the government’s management of energy efficiency dipped by 85 points (Fig 9, see full report). Consumer respondents painted a more optimistic picture for suppliers of high efficiency lighting, with eight out of 10 projects incorporating this technology. The uptake of high efficiency lighting was slightly reduced from Q4 2016, but was 14 points higher than the 2015 average. Lighting controls continued as the second choice technology with Solar PV in third place. Energy efficient motors and drives



was the fourth choice and showed stable growth in Q1. Other technologies/materials that are exceeding the 2015 average include: • building fabric interventions (glazing, insulation etc.) • high energy efficiency refrigeration • energy recovery Commenting on the findings, Ian Jeffries, Director at EEVS, said: “Clearly it’s been a very difficult quarter for suppliers of energy efficiency services. Consumers appear to have tightened their belts of late and not only has this meant declining orders, but those orders made were materially smaller than before. “Customers are also demanding shorter paybacks from their investments, which must be adding further pressure on the bottom line for many suppliers. “The exception to this rule was high efficiency lighting, however, which appears to continue on its upward trajectory regardless.” Richard Singleton, Managing Director, Corporate, at Bellrock said: “As a UK-based business with international clients, the uncertainty reflected in the report over the potential Brexit is certainly reflected by

Energy Manager Magazine • June 2016

our own experience. Decision-making is stagnating, and not just for energy efficiency projects, although this is not as true for our healthcare and education sector clients. “We often experience a similar but more wide-reaching slow down, coming up to a general election, however unlike an election there are ramifications beyond the decision from the referendum. The long term trend for lower capital projects will probably continue therefore, until such a time as there is confidence in the clarity for trade and stability for the economy in general.” About the report Compiled from the results of a confidential, quarterly consumer and supplier survey, the UK Energy Efficiency Trends Report evidences industry trends and has become one of the sector’s leading sources of market intelligence. The report is delivered by a research partnership between EEVS and Bloomberg New Energy Finance, and is supported by Bird & Bird and Bellrock. Download the full report here: http://www.energyefficiencytrends.co.uk


News

ENERGY MANAGEMENT SECTOR: “UK MUST ‘REMAIN’ OR BRACE FOR ENERGY PRICE HIKES”

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he latest issue of the UK Energy Efficiency Trends report (Volume 15) shows overriding support to remain within the EU from the energy management sector, with suppliers and consumers particularly concerned that energy prices would rise if the referendum results in a Brexit. Consumers expressed concerns that the cost of buying energy saving technologies may also rise and that the potential roll back of EU-led policy initiatives by UK governments could increase uncertainty and undermine the business case for energy efficiency investments. The report asked energy efficiency suppliers and consumers what Brexit outcome was in the best interests of the energy efficiency sector (see Fig 23, Fig 27). Suppliers were overwhelmingly in support of an ‘in’ vote (79%) with 14% undecided and 7% opting for ‘out’. Consumer respondents were less certain, with 64% ‘in’, 30% undecided, and just 6% opting for ‘out’. When asked about the potential impacts of a Brexit, 57% of supplier respondents would expect UK energy prices to rise; 42% of consumer respondents also anticipated energy price rises. Both suppliers and consumers were broadly positive about the impact of EU policy initiatives on the UK’s uptake of commercial sector energy efficiency initiatives. On the supply side, respondents agreed that the following EU policies had had a positive impact: • Display Energy Certificates (68%) • Energy Performance Certificates (68%) • Energy Savings Opportunity Scheme (76%) • EU Emissions Trading Scheme (61%) When asked the same question, commercial sector energy efficiency consumers were also generally positive, although slightly less markedly, giving the following responses: • Display Energy Certificates (61%) • Energy Performance Certificates (67%) • Energy Savings Opportunity Scheme (48%)* • EU Emissions Trading Scheme (48%)* *NB: Of the remaining 52% in both cases, the majority stated they didn’t know if these policy initiatives had increased the uptake of energy efficiency, suggesting a neutral view. The report showed that uncertainty around Brexit had impacted 60% of supplier

respondents’ business investment decisions but had no impact on EU-based orders, staff recruitment or sale prices. Commenting on the findings, Ian Jeffries, Director at EEVS, said: “From this research we see that the UK energy management sector has planted itself firmly in the ‘remain’ camp on the Brexit debate. “As well as an expectation that ‘leave’ would drive up the capital cost of energy saving technologies for consumers and lead to higher energy prices for all, both suppliers and consumers were fearful that the UK government’s poor record on energy efficiency would see well-established and popular EU policies that support energy efficiency, such as energy performance certificates in buildings, being scrapped to the detriment of the sector. “With less than 7% of respondents supportive of a UK exit from the EU - and with political and economic uncertainties already reported to be holding back investment in energy efficiency schemes from this research the energy management industry’s stance on Brexit is an overwhelming ‘remain’.” Michael Rudd, partner specialising in energy management at international law firm Bird & Bird, said: “The EU has played a key role in energy management to date, through setting targets and legislating to improve energy efficiency in buildings and products. “It has also provided some certainty in the energy management sector and contributed to investors’ confidence; the intangible effect on investor confidence may be the most important consequence of any Brexit. “Some are concerned that Brexit could lead to the UK government moving away from new law or policy requiring energy management improvements, certainly when faced with criticisms from certain stakeholders regarding the current policy framework (e.g. excessive “red tape”). “Others argue that a Brexit could result in the UK government and industry supporting and possibly requiring further energy efficiency improvements, perhaps as the government pulls further back from subsidising renewable generation. “We are seeing growing momentum in the market now, regardless of the Brexit referendum; driven in part by the UK’s proactive energy consumers and other key stakeholders, but also by commercial

requirements and the business impact of (high) energy costs. “Our view is that the competitiveness of UK industry demands higher energy productivity, whether Britain remains in the EU or not.” Richard Singleton, Managing Director, Corporate, at Bellrock said: “As a UK-based business with international clients, the uncertainty reflected in the report over the potential Brexit is certainly reflected by our own experience. Decision-making is stagnating, and not just for energy efficiency projects, although this is not as true for our healthcare and education sector clients. “We often experience a similar but more wide-reaching slow down, coming up to a general election, however unlike an election there are ramifications beyond the decision from the referendum. The long term trend for lower capital projects will probably continue therefore, until such a time as there is confidence in the clarity for trade and stability for the economy in general.” The report is delivered by a research partnership between EEVS and Bloomberg New Energy Finance, and is supported by Bird & Bird and Bellrock.

Download the full report here: http://www.energyefficiencytrends.co.uk


Opinion

If chaos is the new normal, petchem needs to re-model By Michael Hinton

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ow’s this for understatement: ‘The oil-price slide of the last two years has been something of a shock to the petrochemical industry’? Shock – and awe. The price of petchem products has dipped to near 2008/09 recession levels, pushed down by oil spot prices currently hovering at the $40 bbl (WTI) mark, and global crude futures closing at 11-year lows. Of course oil markets have always been changeable, but many chemical producers were sideswiped by just how quickly and drastically the oil price dive tanked their margins. And despite the adjustments the industry has made to date, it’s too soon to relax. The evolving nature of today’s energy markets makes more volatility and new price shocks almost inevitable. Against a chaotic business backdrop, improving the visibility of the market risks around essential feedstock becomes mission critical. To protect their margins and manage the crack spread between feedstock costs and refined product prices effectively, petrochemical companies have to raise their risk management game. The time to prepare for whatever new shocks lie below the horizon is now.

What changed? After four years of relatively stable prices, too many companies were unprepared – caught napping by the sudden drop in crude prices that began in mid-2014 and continues to the present day. Politics, weather, and war have always been variables with the potential to destroy margins. What’s driving today’s oil price shocks however are baseline shifts in the global dynamics of energy market supply and demand.

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Oil supply has grown in recent years, mainly due to new production from US shale. OPEC’s unwillingness to scale back production in response to shale output has exacerbated oversupply, while rebounding exports from countries that had been held back by embargo, or experienced political upheaval – namely Iran and Iraq – have added to the glut. Slower global economic growth and increased energy efficiency, meanwhile, have conspired to push down demand. But the changes aren’t finished. What should be worrying Petchem companies now is the prospect of more supply-side shocks in the near term, making it even harder to find profit in the crack spread. Petchems are caught in a classic double whammy. Crude prices determine production costs for finished products since the chemical building blocks for ethylene, and propylene are directly produced from oil, and oil derivatives like naphtha. But petrochemical production is also energy-intensive, with manufacturing infrastructure that needs its own hedging strategy to mitigate energy costs—all of which are affected by the price of oil.

Sources of volatility As Iran negotiates its way back into major export markets, production is still just a trickle – but one with the potential to drive prices lower. Production from other troubled countries like Iraq and Libya can be expected to be chaotic, affected without warning by disruptions related to political and social unrest. Meanwhile, the shale boom that’s been so transformational to the US economy and global petro politics generally, has also brought new supply chain management issues – namely high production-decline rates. It’s quite normal for peak production at Shale wells to drop by up to 80 percent within a year. That means shale oil supply needs constant oversight and new production sources continually lined up.

Energy Manager Magazine • June 2016

On the upside, new shale and other light tight oil production can be launched relatively quickly – so quickly that pundits have speculated the US could replace Saudi Arabia as the world’s go-to swing producer. On the downside, shale producers have shown a preference to park their investments when oil prices are low, leading to rushed supply ramp-ups when oil prices rise. When you add OPEC’s apparent determination to keep production up – running away from its traditional role as global price referee – it’s a recipe for more supply-demand shocks, and a bitches brew of rapid price spikes and rapid price declines.

How Petchems should react The oil price collapse has exposed a fatal weakness in the petrochemical industry: too many companies without the capability to respond quickly when price shocks land. The stable price environment that preceded the 2014 drop lulled many chemical-company leaders into a false sense of security, and they failed to keep up investments in risk management systems. The problem is fixable. A petrochemical producer with the right tools in place can expand margin in a falling-oil-price environment by identifying sourcing savings


Opinion ahead of declines in product pricing. When oil prices go back up, margins can be still protected by raising prices faster than costs rise. The key is to have visibility of risks and changing market conditions, and stay steps ahead of the competition.

Commodity management to the rescue With the right commodity management (CM) tools and attendant processes in place, the impact of oil shocks on petrochemical companies can be minimised. Effective CM should provide petrochemical companies with the ability to do the following: •

• •

Analyze portfolio exposure to measure how various oil-price scenarios will impact the value of oil and other energy trades Monitor oil-price indicators to identify impending oil shocks Minimize risks by modelling the cost

alternatives for financial hedging, contracts, as well as the logistical risks attached to replacement feedstocks Perform simulations on portfolio to guide trades under different oil-price scenarios; for example, what do we do if the oil price goes up 7 per cent or 11 per cent next year? By applying this and other ‘what if’s’, petchems can make educated assumptions about costs and prices based on where the market is going.

The level of uncertainty that continues to define oil markets should banish any complacency around trends that dominated during normal conditions. Despite the lessons of 2014 onward it’s still an open question which petchem companies will push ahead of the competition, and which will continue to watch profitability slide. Raising the visibility of market risks is absolutely essential if chemical producers

are going to manage the crack spread and control feedstock and energy costs effectively. Only with commodity management systems and processes in place to provide critical business intelligence, transact and capture data in real time, then analyze it to make optimal decisions around trade execution, position management, and physical logistics, will this happen. The truth is, oil-price volatility can provide as many opportunities as risks, and petchem companies with the right tools can position themselves for profit. Smart investments in commodity management systems will enable producers to effectively plan for, respond to, and even benefit from the oil price roller coaster. --Michael Hinton is Chief Customer Officer and Senior Vice President Products and Solutions for Allegro Development.

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Energy Management Software

Reducing the hidden cost and carbon of ICT

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usinesses and the public sector are increasingly looking for innovative ways of saving money and carbon emissions through improvements in energy efficiency. Whilst we have seen substantial progress to date with improvements in more conventional physical measures - such as insulation standards, heating, ventilation, cooling and lighting - where do businesses turn to next in their mission to further reduce costs and respond to the threat of climate change? Information and Communications Technology (ICT) typically accounts for 12% of business energy use, yet ICT energy management is often overlooked as a way to realise cost savings and carbon reductions. SSE Enterprise Energy Solutions’ innovative Energy ICT Solution is a software package which controls ICT devices, with the potential to deliver substantial energy, carbon and cost savings by simply turning ICT devices on and off when not in use, or putting them into hibernate or standby. Back in April 2014, following a successful free trial, Glasgow City Council implemented Energy ICT across its schools estate and in just two years the local authority has saved 3,980 tons of CO2;

has reduced its energy requirements by a massive 7.54GWh of energy, the equivalent electricity required to provide the annual electricity needs to power 2285 homes; and has cut the council’s energy bill by £771,470. The ICT solution paid for itself within 8 months, with the ongoing savings freeing up crucial funds for the local authority. Not only can interested businesses receive a free trial to calculate potential savings, they can also pay for the solution as they save. As well as helping businesses and the public sector with ICT energy management, SSE Enterprise Energy Solutions provides a range of additional services to business customers to help identify improvements in their management of energy consumption and building environments. It offers services to businesses to help install, control and optimise building management systems which can help customers dramatically reduce their energy consumption and help contribute towards energy efficiency and carbon reduction targets.

So why is SSE, a traditional seller of energy, trying to help businesses use less? SSE Enterprise Energy Solutions Managing Director, Kevin Greenhorn, explains more: “Sustainability is one of SSE’s core values and as a responsible business, helping our customers manage their energy more efficiently is one of our key priorities. We see Energy ICT as the final frontier in energy management and with businesses and the public sector increasingly looking for much more from their energy provider, particularly in managing costs and responding to the threat of climate change, we are committed to working closely with our customers to help deliver a sustainable solution tailored to their individual needs and circumstances.” To find out more about Energy ICT and to arrange a free trial, please contact Peter.Barnes@sse.com Director of Energy ICT or go to https://sseenterprise.co.uk/ solutions-for-business/energy-solutions/ energy-ict

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DAIKIN UK LAUNCHES BLUEVOLUTION R32 AIR CONDITIONING RANGE

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aikin UK has launched its new air conditioning range, named Bluevolution, using R32 refrigerant gas. Considered by many to be the refrigerant of the future, R32 has a lower Global Warming Potential (GWP) and is significantly more energy efficient than its predecessors. Following the European phase-down of hydro-fluorocarbons through F-Gas legislation, refrigeration gases are now rated on their carbon dioxide tonnes equivalent and consequently, their environmental impact. Leading the move to lower GWP refrigerants, Daikin is a pioneer of R32 refrigerant-based systems and has now launched the first commercial R32 refrigerant air conditioning range in the UK. Encompassing Daikin Split and Sky Air systems, the R32 Bluevolution range offers a future proof, affordable, air conditioning

solution. Quick and easy to install with reduced leak check requirements, the Bluevolution range incorporates the latest innovative technology. The new range provides the highest Seasonal Energy Efficiency Ratio (SEER) and Seasonal Coefficient of Performance (SCOP) ratings, offering improved energy efficiency and reduced environmental impact. Following the initial launch of the Bluevolution range in Pilsen, Czech Republic, for traditional split units, the Bluevolution range has now expanded to include the Daikin Emura and Sky Air products. Offering unrivalled comfort and control, the R32 range now also includes the Seasonal Smart High COP Roundflow Cassette and new iTab Controller. Martin Passingham, Product Manager for DX at Daikin UK said, “We’re extremely excited to be launching the first commercial R32 range within the UK market. As the

HVAC

F-Gas phase out continues, it is important that installers and customers make the move to lower GWP refrigerant-based systems. “With very little difference to the R410a installation process, installation with R32 gas is simple and straightforward, and provides only benefits for the end user. “Offering the ultimate in energy efficiency and control, the new Bluevolution range delivers a future proof investment throughout the F-gas phase out. Alongside the efficient R32 refrigerant, additional new system features, such as a power saving mode, ensure low running costs over the course of the systems’ lifetime.” For more information on Daikin UK please visit www.daikin.co.uk


HVAC

HVAC - Infrastructure for modern healthcare delivery and patient Chris Needham, Healthcare wellbeing By Solutions Lead, Schneider Electric

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ospitals are the second most energy-intensive buildings to run after restaurants. Globally, the cost of operating healthcare sites, including energy costs, are on the rise. Whether building a new hospital, or retrofitting an existing facility, hospitals are under mounting pressure to do more with less, while also complying with strict regulations, ever-changing technology, plus health and safety measures. The Centre for Sustainable Energy recently found that UK hospitals are one of the highest average carbon dioxide emitters in the country. In fact, energy alone makes up almost one quarter of the National Health Service (NHS) carbon footprint. At the core of this efficiency problem are outdated and siloed processes, along with legacy systems.. Fortunately, new advances in technology now make it possible to integrate traditionally separate facility systems together to form an “intelligent” hospital infrastructure. As a result, significant improvements in patient safety and outcomes and reductions in operational costs are possible. Through the use of intelligent infrastructure, hospitals can manage everything from HVAC to lighting to CCTV, patient journeys and valuable medical equipment assets. This improves both the environment of care and the bottom line. It’s vital that these platforms are flexible, scalable and repeatable, whilst delivering the right information, to the right people, at the right time. Acting as a central nervous system for the hospital an intelligent technology infrastructure integrates traditionally disparate systems. Power, building

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management, security and IT can be integrated to enable cross-system communication, as well as real-time monitoring, optimisation and automation. When a hospital’s systems can “talk” with each other without the need for complex interfaces, the resilience of the infrastructure as a whole is strengthened and provides access to greater information and intelligence, leading to more effective use of all resources. Additionally, actionable information and real insight is provided by tools like Schneider Electric’s Power Monitoring Expert help manage power quality performance, and improve financial performance, energy availability and patient safety in healthcare facilities. Constant power monitoring that provides real time status is vital to ensure network recovery time is reduced in case of a fault. This includes identifying and focusing on the most sensitive parts of the network as well as ensuring that standby system is consistently and effectively tested, thereby reinforcing predictive maintenance. Effectively managing heating, ventilating, and air conditioning (HVAC) solutions is the foundation for taking control of energy usage in a building, and optimising environments for enhanced performance and energy efficiency. In hospitals they are a vital part of the infrastructure and very high standards of design and operation are mandated as part of the government’s “Health Technical Memorandum 00”. HVAC controls connect to and are controlled by Building Management Systems (BMS) and respond to

Energy Manager Magazine • JUNE 2016

environmental conditions such as temperature, moisture and CO2. In hospitals, certain types of rooms have specialist HVAC pressure requirements. For example, operating rooms and ICUs may employ a positive pressure regime to help to reduce the risk of airborne infection, while isolation rooms may require negative pressure to prevent the spread of airborne pathogens. As HVAC is often responsible for over 40 per cent of energy usage in any given building, in hospitals particularly, it is one of the areas where the most savings can be made. These savings vary depending on the equipment being controlled as well as the existing state of energy conservation technologies. Experience suggests that savings of between 15-30 per cent are achievable in most cases. As an example, Schneider Electric is working with Musgrove Park Hospital, part


HVAC of the Taunton and Somerset NHS Foundation Trust to implement 180 technical energy saving solutions. These will save the hospital £17 million over 20 years. This is as a result of reducing the hospitals’ energy consumption by more than 40 per cent. One part of the project was a full overhaul of the HVAC system including variable speed drives and control on air handling units and pumps. The upgrades included free cooling alterations to remove mechanical cooling requirements. Hospitals demand consistent and constantly available power to ensure safe, efficient and cost effective operations. Although the installation and management of critical power environments are both complicated and costly, losing the power supply simply isn’t an option when patients’ lives are on the line. Hospitals are often directly connected to electricity sub-stations to minimise the risk of power cuts. Nonetheless, it’s vital that hospitals have a power outage solution in place, which monitors critical power availability, power quality and schedules in maintenance at the most appropriate time, along with performing real-time diagnostics in the case of a power failure. Recent developments in Building Automation System open protocol communications technology allow all of the critical systems within a hospital, like HVAC, lighting, security and electrical power to communicate with one another in a more intelligent way, both improving the healing environment for patients and allowing for more efficient facilities management. Often a BMS is installed and commissioned, with predicted parameters that are suitable at that time. But, whilst hospitals are only built once, over time the use of the building and the services delivered within that building will inevitably change. Additions to the building or changes in its configuration without major investment to upgrade environmental systems and controls at the same time will impact negatively upon the energy performance. Such changes can also result in lower employee productivity, higher energy bills and increased building maintenance costs. However, re-commissioning, extending or upgrading a BMS which is designed to be flexible and scalable to meet with the activities of the hospital in the future, can change all of this. The challenges faced by healthcare providers means that ensuring operational efficiency is vital. It is imperative that healthcare institutions get health check of their own as well. This will allow them not only to check whether they are resilient and getting the most of out their infrastructure – but also to check whether they are compliant with the standards

in operation. Consultants can help with resilience testing services to ensure security and assurance, along with design and audit services to help with upgrading any systems and providing retrofits, as well as providing strategy and advice. Understanding the condition and performance of a hospital’s systems and infrastructure is key to improving safety and efficiency. A successful and effective BMS system is at the core of the ability to do just this. The direct implications on health and wellbeing of patients, together with the need to ensure hygiene and cleanliness, and operational considerations make a BMS a significant factor in ensuring successful outcomes of patients. Connected, intelligent controls and equipment can now deliver greater insight

into the performance of hospital facilities and can provide a significant, measurable return on investment. The opportunities for savings that exist cannot be accessed through the traditional building approach as this leads to a hospital infrastructure with disparate systems, duplication of infrastructure and inefficient communication. A significant investment has been made over many years into developing solutions and technologies that can unlock savings, improve operational productivity and patient safety. These solutions are now a reality and are helping healthcare providers do more with less across the world. www.schneider-electric.co.uk

Energy Manager Magazine • JUNE 2016

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Feature

Helping the Public S save energy and costs Since 2005, STC has recovered over £142m worth of utility billing errors for its clients. This service can create many intrinsic benefits, generating direct cost saving opportunities. By employing a dedicated provider, businesses will be able to identify all billing errors and ensure that all overcharges are correctly refunded.

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Cleansed Portfolio ublic spending has already been cut by 8.3% since 2010 and is facing a further 1% cut in spending between 2015-16 and 2019-20.

Energy is still one of the major expenses for public sector bodies, and in this article we demonstrate how further reductions in cost and consumption can be made.

Bureau Services – Saving money by outsourcing utilities management Making savings on energy expenditure is always on the agenda within finance and energy departments and the public sector is no exception. As well as introducing energy saving products and behavioural controls, savings can also be made by fully validating utility invoices (streamlining invoice management and accounts payable processing).

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The first port of call is to establish exactly what supply points are in your organisation (including water) and create a cleansed database of all utilities. This in itself can highlight opportunities for savings, such as identifying non-consolidated supplies billed on “default” or out of contract rates.

Invoice Validation - Only paying for what you use Suppliers’ contracts and invoices can be very complex and difficult to understand and as a result it is inevitable that some billing errors will be missed. With flexible and energy only contracts becoming a more popular way of buying energy, additional validation is required to balance reconciliation statements from suppliers and check the growing number of third party charges. STC have been processing utility invoices for over 20 years and estimate that between 3% and 5% of utility expenditure can be saved by fully validating supplier

Energy Manager Magazine • June 2016

invoices. Further savings can be achieved by reducing time spent by internal staff dealing with utility issues. This type of saving can often outweigh the cost of an energy bureau service, which should equate to less than 0.5% of the total utility expenditure. We perform over 50 individual checks on every invoice processed. Our validation process is defined by strict quality controlled procedures to ensure that all billing errors are identified and corrected.

Accounts Payable - Faster solutions, accurate results Changing to electronic billing and using a system that can import and validate these invoice files provides a much more efficient way of processing utility invoices. Once validated, invoices can be included on a consolidated accounts payable file that can be imported to most accounts software. This process further reduces the time internal staff spend processing invoices and also ensures that duplicate or incorrect payments are eliminated.

Profile Alerts - Highlighting wastage STC recommends setting consumption targets and undertaking proactive monitoring, using traffic-light reporting and profile exception alerts. STC provide half-hourly and AMR profile data


Feature

Sector costs management for electricity, gas and water meters and loggers. We use sophisticated software modelling to build a picture of site’s consumption profile, which is then automatically monitored for exceptions. Any deviations will trigger an email alert, and can be viewed on a map-based site exception dashboard. Reporting can quickly highlight which sites are over target, enabling swift corrective action. Profile alerts are very successful in identifying wastage directly, and in suggesting behavioural changes that can be implemented to reduce wastage.

Demand Response - Avoiding peak times With the introduction of the capacity market, reducing energy usage during peak times is crucial. Our analysis of the profile data can assist with identifying periods of consumption that could be reduced during peak times. Peak times are typically 4pm – 7pm Mon – Fri between Nov – Feb (business days only). However peak times can vary by region.

Compliance Although the CRC scheme is nearing its demise in 2019, annual returns and audits will still be required. Savings can be made here by ensuring that estimated invoices are kept to a minimum by using Profile / AMR data or self-read meter readings. This will save an uplift of 10% on estimated data when purchasing allowances. Finally, by combining these services, more businesses within the public sector will be able to save more energy and thus reduce costs. With inevitable public spending cuts in place and further on the horizon, now is a crucial time to start making more effective and efficient decisions. For solutions and services that work use STC Energy, call us on 0208 466 2915 Email us at info@stcenergy.com www.stcenergy.com

Energy Manager Magazine • June 2016

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Boilers/Burners

Five ways to boost boiler house efficiency

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ith budget constraints and an ever increasing pressure to reduce carbon emissions, the need to enhance productivity, cut maintenance workloads and improve system safety have become high on the agenda for energy centre operators. Chris Coleman, Marketing Product Manager – Condensate Handling at Spirax Sarco offers five ways to boost boiler house efficiency right from the heart of the steam system. The boiler house is the engine room that powers the whole steam system, making it the ideal place for identifying efficiencies. By targeting the centre of the steam system we can find the best investments to reduce fuel consumption, carbon emissions, water use, and overall running costs. For operators, there are numerous ways this can be achieved.

1. Reverse Osmosis

Reverse osmosis (RO) is a water purification technology used to remove minerals and eliminate boiler scaling, and is one of the simplest techniques to maximise operational savings. It works by using semi-permeable membranes with pores so fine 98 per cent of all salts are removed from the incoming supply, allowing water to pass through with minimal impurities. This diminishes the need for boiler treatment chemicals, reduces ongoing maintenance costs, fuel consumption and water and energy losses, and makes RO a cost-effective way to maximise savings with payback achieved in as little as 12-18 months.

2. Automatic Total Dissolved Solids (TDS) Control

The TDS blowdown process is essential to ensuring a clean, dry steam supply and can be accomplished either manually or automatically. During boiler operation, TDS levels will increase and may rise above accepted levels if not monitored. This will cause a foaming condition which will contaminate the steam and may cause priming to take place. It can also cause fouling and water hammer issues for control valves, heat exchangers and steam traps. Automatic control systems measure the conductivity of the boiler water, compare it with a set point, and automatically open a blowdown control valve if the TDS level is too high. This maintains a constant TDS level

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and minimises the loss of water from the boiler, as well as associated energy losses.

3. Flash Steam Recovery

Flash steam is formed when high pressure condensate is exposed to a large pressure drop, often created during the blowdown process. Venting flash steam with no form of heat recovery wastes energy but, by recovering flash steam and feeding it back into the feed tank via a deaerator head, companies can make economic and environmental savings. A flash vessel is just one method that can be used to recover energy by separating flash steam from condensate. As condensate enters the flash vessel, flash steam is produced and can be piped from the top of the vessel to the feed tank via the deaerator. Float traps can be fitted to the outlet of the flash vessel where residual blowdown water will be drained. The water will still be hot at this point and is allowed to pass into the plated heat exchanger where it gives up its heat to the circulating cold make-up water. In other words, by using the hot water from the flash vessel, heat energy is recovered. The use of both a flash vessel and plated heat exchanger pack, will allow you to recover up to 80 per cent of the energy from the rejected TDS water, which can also result in fuel savings, a reduction in carbon dioxide emissions, and the elimination of unsightly plumes of steam.

4. Exhaust Gas Heat Recovery

Recovering heat from the exhaust gases of heavy fuel oil or biomass boilers can be difficult because dirt can block and damage conventional heat exchangers. Energy recovery from exhaust gases, however, can provide valuable savings and significant reductions in carbon emissions. Exhaust gas heat recovery systems work

Energy Manager Magazine • June 2016

by making use of the heat that would have otherwise have left the system in the form of waste flue gasses. This recovered heat can be used to preheat the water entering the boiler thereby reducing the amount of additional energy required to boil the water. The development of heat pipe technology can be used as the core heat exchange component for exhaust gas energy recovery. By using heat pipe technology, fuel costs and carbon emissions are lowered. This means the pipes become easy to maintain and ultimately prove to be an extremely effective way to cut operational costs.

5. Steam System Conditioning

Steam system conditioning is based on the principle of water and condensate treatment optimising the efficiency of the entire steam system. A clean boiler is only one part of this, and water conditioning can be a hugely effective way to maximise energy efficiency. The feed water storage system is vital to the whole steam system, as it not only stores the energy in returned condensate for re-use in the boiler, but balances and deaerates returned condensate, flash steam and raw water supplies. Steam system conditioning can reduce chemical use, the risk of corrosion and maintenance costs, while increasing the reliability of the steam system. This results in greater productivity. As outgoing costs and productivity levels have become a major priority for energy centre operators, these relatively simple but extremely effective measures can improve efficiency significantly. An efficient boiler house is crucial to the overall steam system and by implementing these techniques we hope that operators can see benefits both environmentally and economically.


Boilers/Burners

Hackney Council installs 24 Remeha boilers

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emeha boilers are providing reliable, energy-efficient heating as part of a communal heating scheme in eight residential tower blocks owned and maintained by Hackney Council. David Manuell, Mechanical Technical Manager at building services consultancy Promode Ltd, specified three Remeha boilers in each of the plant rooms, ranging from Gas 210 4-section 120kW Eco Pro boilers up to Gas 310 8-section 500kW Eco Pro boilers according to the heat output demand of the individual building. The 24

boilers, together with supporting Remeha buffer vessels and pressurisation equipment, were installed prior to the tower blocks being moved across to heat interface units (HIUs). David Manuell commented: “We’ve used Remeha products for several years and have been impressed by their high performance and easy maintenance. The boilers are fully operational and running reliably, efficiently - and extremely quietly! Remeha offered us excellent service and backup support throughout. All in all, a great project.”

www.remeha.co.uk T: 0118 978 3434 E: boilers@remeha.co.uk

New from ELCO: THISION® L EVO A step forward in commercial boiler design

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LCO Heating Solutions has launched the THISION® L EVO – a completely re-engineered range of highly efficient wall mounted gas-fired condensing boilers with outputs from 60kW to 140kW. The new boiler utilises the finest technological features and components, offering customers a highly flexible unit that can be specified for an extensive range of applications. Outstanding features include: a flat metal fibre cold flame burner for extremely low NOx emissions; a robust stainless steel heat exchanger with double wall geometry providing superb heat transfer; extensive cascade arrangements for powerful and flexible systems; plus the latest control functionality to ensure optimum performance. The THISION® L EVO has also been manufactured with the UK commercial market in mind. The range is capable of operating at 8 bar maximum water pressure, allowing it to be compatible with multi-level buildings without the need for hydraulic separation. In addition, the boilers can be integrated into district heating systems and maintain optimum efficiency, thanks to a 30oC ΔT temperature differential. For ease

of installation and to simplify room sealed installation, all boilers are compatible with parallel and concentric flue systems. To make specification in cascade simple, THISION® L EVO boilers can be arranged in-line or back to back. The maximum output available from a cascade frame is an impressive 1.1 MW, with units mounted on pre-fabricated cascade rigs available in wall mounted or floor standing setups. For ease of installation, single and cascade arrangements can be transported and set up by a single person. With the addition of integrated master-slave cascade functionality, plus the capacity for additional heat generators/renewable energy sources, THISION® L EVO in cascade offers unrivalled capabilities. The double helix stainless steel heat exchanger at the heart of the THISION® L EVO combines high quality materials and ingenious engineering to produce a highly efficient appliance. With minimum hydraulic resistance, the heat exchanger provides significant reductions in electrical usage, while a laser welded fin tube minimises heat losses though the heat exchanger surface. Furthermore, thanks to its stainless steel construction, the heat exchanger will maintain efficiency over its lifetime, and remain much more resistant to corrosion and material degradation than traditional aluminium counterparts. For improved environmental benefits, the THISION® L EVO excels in a range of

areas. Firstly, the NOx emissions already comply with future standards, including the Ecodesign Directive due in September 2018. Another impressive development is the boiler’s reduced energy consumption, with only a 0.15kW fan required for a 140kW model. Finally, internal noise conditions are improved and kept to a minimum thanks to a fully insulated casing, while the carefully engineered panels help to reduce excess heat radiation, limiting it to only 81W. Gavin Watson, Sales Director for ELCO, said: “The THISION® L EVO is the result of ELCO’s commitment to manufacturing the finest boiler technology. We have added new features, as well as taken all the best elements of its predecessor, the THISION® L EVO, to make the unit one of the most capable and flexible units on the market. We’re sure that specifiers and contractors will be impressed by the level of engineering involved in the boiler’s development, which will no doubt be on display in plant rooms up and down the country very soon!” For more information on the THISION® L EVO and ELCO’s full range of commercial boilers, please visit www.elco.co.uk

Energy Manager Magazine • June 2016

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My Working Week

Turning up the heat With Logstor Who are you?

Christopher Hill, UK Sales Manager for Logstor About Logstor LOGSTOR is a leading manufacturer of pre-insulated pipe systems for district heating and cooling. Headquartered in Denmark, Logstor has subsidiaries in Austria, China, Finland, France, Germany, Italy, Lithuania, the Netherlands, Poland, Romania, Russia, Sweden and Switzerland as well as a network of agents and sales offices. The Group’s 9 production facilities are situated in Denmark, Poland, Sweden, Finland and China. The Group employs approximately 1,350 people. District heating provides heat to homes and buildings from a network of underground and well-insulated pipes fed by a central source. District heating can supply heat to housing developments, whole towns, areas of cities or sometimes an entire sustainable city.

What do you do? Monday I am the UK-based representative for Logstor and whilst I get a huge amount of support from our head office in Denmark, my job requires me to wear a number of different hats – from client contact to technical expert! Every Monday I start my day with a conference call with our transport department in Denmark – today I need to confirm transport and delivery accuracy for expected UK consignments. Next, it’s a call to our customer service team based in Poland before confirming my meeting with a major energy company that I am meeting with later in the week. There is a huge level of ambition within Logstor to develop more District Heating networks in towns and cities across the UK so a big part of my day is spent speaking to customers and suppliers on our ‘live’ projects but also contacting prospective

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customers such as housing developers, local authorities or housing associations who are looking to develop plans for installing heating networks.

Tuesday I’m heading to London today for a meeting with a consortium of Danish organisations involved in district heating. It’s a knowledge-sharing exercise and effective networking opportunity. Logstor is a member of UKDEA (the UK District Energy Association) and DBDH (Denmark’s leading district heating export organisation) and as well as working in an advisory capacity to aid with market planning for potential DH schemes - I am often asked to present at ‘masterclasses’ to Local Authorities - promoting district heating and sharing Danish expertise and knowledge! In the afternoon I’m meeting with an installation company to discuss district heating projects in London.

Wednesday Still in London. I am doing a presentation to a large energy company – all about Logstor’s Value Propositions (which demonstrates our guarantee, encompassing everything from cost, product specification and best practice installation to transport and customer service support) - with a view to working together on a number of exciting local authority schemes across the UK. Our success as a business, not just in the UK, but globally, is in part due to the strength of our reputation.

Thursday Logstor’s VP of Sales is visiting the UK this week and we have a site visit with our

Energy Manager Magazine • June 2016

client EON at Cranbrook. Logstor is the approved supplier for the project. E.ON is responsible for the design and operation of the heat distribution network and energy centre, including heat interface units that will pipe heat into the individual homes and commercial premises. Using the latest Logstor district heating pipe work and combined heat and power technologies the project will supply heat and hot water to both the community of Cranbrook and the Skypark business development. The District Heating technology will help to lower CO2 emissions by 13,0001 tonnes each year and reduce heating bills. Waste heat is used to heat the water and space heating supply and with no gas boilers there’s no boiler maintenance or replacement costs and residents will have hot water on demand.

Friday I travel to Logstor’s Head Office in Denmark on Sunday. I’m generally at H/O once a month. The purpose of next week’s trip is to attend an internal presentation for customer value management. It is an internal event and includes all Logstor subsidiaries. It’s a great opportunity to meet with my colleagues from across our global network, and to discuss the number of exciting opportunities that exist for Logstor in the rapidly growing UK district heating market! Email: chr@logstor.com Mobile: +44 (0) 7788 284884 www.logstor.com Follow us https://twitter.com/LogstorUK


Monitoring/Metering

Quarry Bank Mill Estate Hanwell technology chosen by The National Trust to protect Britain’s industrial heritage

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ne of the best-preserved textile mills of the Industrial Revolution, Quarry Bank Mill in Styal, Cheshire, now forms part of one of Britain’s greatest heritage sites. It is supported by a unique and nationally significant archive and collection and cared for by the National Trust. It shows how a complete industrial community lived, and how society changed forever. Designated as a Grade 11* listed building, Quarry Bank Mill was built in 1784 and inspired the recent Channel 4 TV drama series ‘The Mill’. Visitors see and hear working textile machinery and the waterwheel and steam engines that powered these machines to produce cloth, and also find out about the workers’ life and work by visiting the Apprentice House and Styal village. Raw cotton was transported here from the port of Liverpool via the Bridgewater Canal. The estate surrounding the mill was developed and farm buildings in Styal were converted to house workers, together with a chapel and a school. Quarry Bank is now undergoing a complete makeover. The 19th century glasshouse and gardens are being restored, and new buildings previously closed to the public such as a Workers Cottage and Quarry Bank House, where the owners of the mill lived, will be opening. “The IMC Group’s Hanwell monitoring and control technology is providing very useful data to enable us to understand the environment in our buildings in order to preserve them and our collection long-term” National Trust Archives & Collections Manager Alkestis Tsilika The National Trust needed to monitor rooms within five buildings spread across the property. Requirements were diverse, ranging from monitoring the long exhibition galleries, historic room settings and machine floors at Quarry Bank Mill, together with Quarry Bank House and Workers’ Cottage, through to the Apprentice House and the Collections Stores with historic furniture and sensitive archival material requiring close environmental control. “These places and items required monitoring to allow us to

record the stability of the environment and to understand the impact this has on the building itself and the objects displayed and stored in them,” explained National Trust Archives & Collections Manager Alkestis Tsilika. “We also needed to monitor the machine floors to ensure we are maintaining the right conditions to operate the spinning and weaving machinery whilst being as energy efficient as possible. Also some buildings have been closed to the public for many years and as part of the Quarry Bank project these will be opened for the first time and we need to understand the potential impact this will have on the environment in these.” Prior to the installation of the monitoring system the National Trust relied on standalone loggers in the stores, which needed to be manually downloaded and spot readers for the other spaces. The client was not able to monitor the conditions in all its buildings and the impact of the conditions on the collections. “We chose Hanwell for this project because of the strong relationship between the company and the National Trust and its understanding of its standards and requirements,” added Alkestis Tsilika. The IMC Group has extensive international experience of sensitive monitoring and control of often priceless collections in challenging environments, and due to the scale of the Quarry Bank site and distance between the numerous buildings a radio-telemetric Hanwell system was selected. Fourteen RH/T loggers and two Lux readers now cover the site and may be extended in the future.

Key Information: Industry

Heritage

Large site with varied monitoring requirements from buildings to machinery and historic furniture to archival material

The National Trust is a conservation organisation looking after special places throughout England, Wales and Northern Ireland for ever, for everyone. The National Trust has more than 4.5 million members and 62,000 volunteers and an estimated 100 million visitors. As well as protecting more than 350 historic houses, gardens and ancient monuments open to the public, the NT also looks after forests, woods, fens, beaches, farmland, downs, moorland, islands, archaeological remains, castles, nature reserves, and villages.

Situation

Client Profile

Solution

A radio-telemetric Hanwell system with 14 RH/T loggers and two Lux readers now cover the site and may be extended in the future.

Hanwell technology is providing data to enable the NT to understand the environment in its buildings in order to preserve them and the collection long-term. NT is now able to record the stability of the environment and to understand the impact this has on the building itself and the objects displayed/stored in them. Ability to monitor the machine floors to ensure client is maintaining the right conditions whilst being as energy efficient as possible. Ability to understand the potential impact on the environment in newly opened buildings End of reliance on manually downloaded standalone loggers and spot readers. Happy client – ‘entirely satisfied with the service provided’.

Results

Energy Manager Magazine • June 2016

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Monitoring/Metering

Carlo Gavazzi continues expansion of meter range with EM210

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asy-to-install and enhanced technological functionality in response to market requirements Carlo Gavazzi’s popular EM210 series has recently been upgraded with technological enhancements such as THD, Neutral current and hour counter to link the energy consumption to the relevant working hours as well as, the new CTV versions available in 2 input voltage ranges MV53 or MV63 and 333mV current signal. Installation is fast and simple, thanks to the meter’s self-power supply from the voltage reference inputs, automatic phase detection with wrong-phase-sequence warning and fast application-oriented programming procedure. Current measurements can be carried out by means of the external split core current sensor which when fitted restricts the voltage to the meter to 333mV; making it a favourable solution for the installer. By using split core current sensor technology,

22

no primary wiring disturbances are needed in existing installations therefore it eliminates the need to disconnect or modify the power cables during installation. A selection of variables can be programmed providing for active and reactive energy measurement or a complete set from 6 sets of 3-phase variables. Options include: system variables such as W, var, PF, Hz and phase-sequence; single-phase variables including A, PF and THD (A, V, up to 15th Harmonic); relevant phase to phase and phase to neutral voltages and phase currents. The THD can be enabled or disabled by the user. The EM210 can also calculate and display the neutral current instantaneous value. Available with pulse only or pulse and Modbus output to provide fast and easy data transmission to connect with PC’s, PLC’s BMS or other data acquisition and monitoring systems. Instantaneous variables are displayed as 3 x 3 digits, with energy meter readings to 7

Energy Manager Magazine • June 2016

digits. Accuracy is ±0.5% RDG (V, A), and the meter is rated Class B (kWh) according to EN50470-3 (class 1 of EN62053-21), Class 2 (kvarh) according to EN62053-23 The EM210 3 phase energy meter is a sibling of the extremely popular family of EM21 3 phase energy meters, all boast its unique patented detachable display which enables the meter to be mounted either on a front panel with just 72x72mm footprint, or on a DIN-rail in only four modules wide and can be used as either a basic energy or multifunction meter combining simplicity and compactness in an innovative and cost-effective energy meter solution for building management systems and cost allocation. All meters within the range can utilise a new mounting frame to allow any of our 72mm x 72mm meters to be mounted as a 96mm x 96mm panel or DIN rail mounted meter, designed with a dedicated slot to allow for tamper proof sealing after installation of a MID meter. www.carlogavazzi.co.uk


Lighting

INSPIRATIONAL NEW ARCHITECTURAL LUMINAIRE FROM AURA LIGHT

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ropel is the latest striking architectural LED luminaire from Aura Light that offers an exciting and colourful addition to offices and public spaces. This three part luminaire can be specified in any colour from the NCS range and displayed in various positions to give the desired look to match the interior of any space, whilst offering excellent light levels and energy savings. The stylish and contemporary design of Propel can be used to simply blend in with a colour scheme, or as a creative focal point for new or modern refurbished rooms. Propel is another of Aura Light’s specialist architectural luminaires that is designed by Swedish lighting designer Joachim Engstrand, and is manufactured in Sweden, the company’s home country. The design, based on the flexible shape and colour options, allows Propel to truly offer architects and specifiers the ability to choose a high performance lighting solution that matches all preferences, whether it is

personal taste or to match an interior design scheme. Available in an 80W output, Aura Light offers the Propel LED luminaire as a low energy replacement for a wide range of light sources as it can significantly reduce the overall running costs of the lighting scheme. With a 50,000 hour life time, the LED luminaire will eliminate regular lamp replacements and provide high performance lighting to a room for a longer period of time. The frame of the luminaire is created using die-cast aluminium which allows for excellent thermal management as the heat from the LED light source is dissipated without any additional heat build-up. The luminaire also contains a microprism glare shield to improve the light distributed across the room. To maximise the energy savings, Propel can be equipped with daylight and presence detectors to reduce the amount of light and energy used when there is enough ambient daylight to light the room, or if the room is

not being used. Standard dimming controls are also incorporated into the luminaire to give workers full control of the light levels to meet their preferences. Propel’s LEDs produce up to 82 lumens per circuit watt with an overall lumen package of 6560 for excellent performance and light quality, which is a key consideration for lighting in a workplace. The product is also supported by a five year guarantee to ensure customers benefit from the full life and energy cost savings that are expected. www.aura-light.co.uk

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Lighting

Arts College lighting upgrade promises 127 tonnes carbon savings and 3-year payback

I

n the latest in a long line of major academic installations, Wootton Upper School & Arts College has been equipped with highly efficient LED lighting supplied and installed by Energys Group. With an impressive Oftsed score and a widespread reputation for its standards of academic excellence, Wootton Upper School and Arts College is one of Bedfordshire’s top performing schools. Now, thanks to a comprehensive upgrade featuring Energys’s New Vision LED lights, it has a first-rate lighting infrastructure to match. The desire to achieve improved levels of brightness and an overall reduction in energy expenditure were among the priorities for the overhaul. The high expectations for the project saw the School engage CUBE Building Consultancy, which provides a full range of building surveying services for commercial, education and residential property occupiers and owners. CUBE was tasked with delivering ‘best value and maximum outcomes’ for the School throughout the project.

Extended project scope As Alex Manuel of CUBE recalls, the scope of the project changed over time as the School managed to secure substantial funding and it became clear that it would be possible to install more new fixtures than was originally thought. “The original outline called for new fittings in the main school buildings and retrofits in the newer,

outer facilities, but once we got the costings back [about possible new lighting solutions] it became clear that the total expense was going to be much lower than anticipated. The result was that the proportion of new fixtures compared to retrofits increased,” he says. In line with standard practice, the demonstration of “the possible cost and energy savings [of new installations], and the way in which they will pay for the work over the period of the loan” was integral to securing the funding. Once this was in place, and, after a rigorous tender process saw CUBE Building Consultancy appoint Energys to deliver the lighting upgrade, “we were able to discuss how to improve the specification and expand the reach of the new set-up. But the selection of the actual fittings for specific areas of the school was very much the domain of Energys.”

A little (more) illumination The final installation relied heavily upon technology from Energys’s New Vision range of LED fixtures. A popular choice for school and corporate applications, among others, the New Vision product range of LED lamps includes new LED fittings, LED retrofit lamps, wall lights, downlights and a full suite of external LED lighting, all of them specified for very low energy consumption in order to deliver the maximum savings to the client.

‘Brighter and Better’ “In the case of the main theatre, we needed to replace 250W metal halide lamps occupying an unconventional fitting whereby the light was both reflected and diffused,” says Energys Managing Director Kevin Cox. “Our original plan was to use our new 120W high bay panel, however, for various reasons we instead installed the standard 36W panel. The client is absolutely delighted by the light level and the comment I’ve heard is that it is ‘much brighter and better’ than before. It is really remarkable that we can go from 280W (including losses) down to 36W and yet achieve much more light.” Indeed, this comprehensive project saw Energys draw on products from across its high-efficiency LED lighting range, including 18W wall fittings in the corridors, toilets and

24

Energy Manager Magazine • June 2016

changing rooms; downlighters in the reception and cafeteria; and emergency bulk head fittings in the classrooms and exit doors. The installation also entailed the specification of LED lighting in staff and study rooms, as well as multiple external areas. “Working together with CUBE, the outcomes on this project have been numerous and impressive from the start. I am delighted to report that the overall result is a very happy client,” says Cox.

Substantial savings One might add ‘no wonder’ when the cost-saving implications of the new infrastructure – which also includes updated electrics and control technology – are taken into account. Energy consumption post-conversion is predicted to be 124790 kWh – down a massive 66% from 365738 kWh – whilst CO2 savings of 127.70 tonnes per year are expected. Financially, this translates to a total annual saving of £37,701.17, including a reduction in maintenance spend of £7,100, and a payback period of just 3.33 years –certainly no mean feat given the scale and scope of the project. In addition, the 5 year warranty means that the school will have recouped the entire project cost plus a substantial additional benefit before any future cost is incurred.

‘Job well done’ From the perspective of CUBE – for whom education is a significant contributor to its overall activity levels – it’s a further case of a job well done. “We had good communication and full collaboration with Energys throughout the project, and the work was completed in time for the 1 September deadline,” says Alex Manuel. “The school’s staff were able to contrast the situation before and after the school holidays, and the improvement was obvious to see. The comments we’ve received indicate that, throughout the school, light levels and quality have improved considerably.” www.energysgroup.com www.cubebuildingconsultancy.com homepage.wootton.beds.sch.uk


Lighting

VENTURE LIGHTING EUROPE’S ENERGY SAVING RETROFIT CORN LAMPS NOW AVAILABLE

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enture Lighting Europe has introduced new high efficiency Retrofit Corn Lamps to its growing range of VLED products for the industrial and commercial markets. The company has launched its own version of the well-known lamp as a high performance solution for new or retrofit installations that can save businesses a significant amount of money. Available in six outputs, the new range of LED Retrofit Corn Lamps are a sustainable and cost-effective direct replacement for traditional halogen, incandescent and HID light sources across a vast range of applications. With a 360° light distribution the lamps are a particularly good addition to round reflector or wide-distribution luminaires, which can cut down the number of fixtures needed across a scheme. Based on the traditional E37 or E40 fixtures, the new Retrofit Corn Lamps can be used for a straightforward lamp replacement without the need for a system or luminaire exchange to help keep the cost and time of an installation to a minimum. Ranging from 20W to 100W, Venture has created a Retrofit Corn Lamp that can be used for installations of all sizes, with light packages from 2,400 to 12,000 lumens to meet the level of light demanded by all commercial and industrial schemes. The versatility of the lamps is also achieved by the wide ambient temperature range from -20°C to +50°C which allows the product to be used in refrigerated areas, outside in sunlight, or facilities such as production factories that reach a high temperature. The LED lamps have a high efficacy rate of 120 lumens per circuit watt and an A+ energy rating to ensure the new lighting is both energy and cost effective for businesses or facilities management. Compared with traditional incandescent lamps, the new Retrofit Corn Lamps can save up to 72% in energy consumption and CO₂ emissions to reduce the impact on the environment. The new lamps incorporate the very latest LED technology to provide high

quality and reliable lighting for up to 50,000 hours. Venture has developed the lamps to run at a cooler temperature to help the LEDs achieve this expected 50,000 hour life. This will also prevent the performance of the LEDs from deteriorating due to excess heat build-up within the fixture. The long life of the LEDs ensures that the application requires minimal maintenance and eliminates the need for regular lamps replacements. This can save users up to 69% in operational costs a year, on top of the exceptional savings from the lower running costs to generate a quick payback of just one year. The reliability and performance of the lamps is supported by a five year warranty. Venture has developed the new Retrofit Corn Lamps to improve the light levels of an installation compared with traditional lamps. Incorporating hundreds of LED chips the light produced by the lamps is significantly brighter at a colour temperature of 6000K which produces a bright cool light similar to that of natural daylight. This allows a truer and sharper perception of objects and surroundings which is particularly ideal in warehousing, factory and floodlighting applications to improve the safety of the area. The LEDs have a short warm-up time of just two seconds to reach the full light levels immediately without any flickering or humming. The Venture Retrofit Corn Lamps are 100% mercury free and are compliant with the latest ErP regulations, making them a safe and environmentally friendly product. Due to the significantly low amount of energy consumed, the lamps also have a much better environmental performance that is not as harmful or damaging as other light sources. The latest brochure on the full range of Retrofit Corn Lamps, covering each of the six lamps and their properties and benefits can be downloaded here.

www.venturelightingeurope.com

Energy Manager Magazine • June 2016

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Solar Energy

WHY EXPLORING THE SOLAR SYSTEM MAKES PERFECT COMMERCIAL SENSE Energy costs in a typical sports centre are second only to labour, accounting for as much as 30% of total running costs. Paul Sands of Stokvis Energy Systems explains how solar thermal water heating can help cut energy usage and fuel bills in the leisure sector

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ll the numbers relating to the sun are mind-numbingly large. For example, it’s ancient - 4.6 billion years old to be precise. It’s hot - with a surface temperature around 5,500 deg C and a core temperature of 15,000,000 deg C. And it’s big - the sun’s mass is a staggering 1,989,100,000,000,000,000,000 billion kg and the Earth could fit inside it around a million times. But, one of the most compelling statistics about the sun from a building services perspective is that the solar energy received by the Earth in just 30 minutes is the equivalent to all the energy used by the entire human population in a year. Harnessing just a fraction of this energy can cut fossil-fuel derived energy output dramatically as well as shrink carbon emissions and slash fuel bills. And that is where solar thermal water heating comes in, especially when it comes to leisure centres and sports facilities. Leisure centres require enormous quantities of heat, not only to ensure a

comfortable space, but also for hot water to service showers, cafés, swimming pools, and so on. Solar heating can supplement the water heating requirements. According to the Carbon Trust, UK leisure facilities could save up to £70 million each year and reduce carbon emissions by hundreds of thousands of tonnes simply by making a 10% improvement in the management of energy use. Solar panels have a significant part to play in achieving this improvement. The Carbon Trust again: “Solar water heating can be very effective for swimming pools and is relatively easy to connect to a conventional heating system. Unglazed solar collectors perform well in summer and are generally the cheapest to buy and install. “Glazed collectors provide more energy in spring and autumn and can give a substantial contribution to pool heating throughout the year, with the remainder provided by a conventional heating system.” Many leisure centres are equipped with modern boilers running on gas or other

“Solar water heating can be very effective for swimming pools and is relatively easy to connect to a conventional heating system.” - The Carbon Trust

26

Energy Manager Magazine • June 2016

fossil fuel to offer reliability of both heating and hot water. But employing even the latest modulating gas boilers to supply hot water to large buffer vessels is not the best option. Even well insulated storage vessels lose heat, causing the boiler to cycle on and off, as the temperature drops. Even having solar coils connected into the system will not alter the situation. Maintaining the temperature will still waste fuel and this is exacerbated by the need to provide regular temperature boosts to kill potential Legionella bacteria in the water. It is far more efficient to have an array of solar panels storing the free energy collected within what serves as a preheat storage vessel. This way, the temperature of incoming water from the mains or a borehole can be raised. And, when the temperature of the water needs to be raised further, a boiler in conjunction with a plate heat exchanger (PHE) can achieve this efficiently and instantaneously.


Solar Energy

New Study by REC:

Closing the COP21 Gap by Going Solar

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n a major new study, REC, a leading global provider of solar energy solutions, highlights the potential of solar energy to close the CO2 emissions gap. REC’s calculations clearly show that, based on the COP21 targets set during the UN Climate Change Conference in Paris last December, solar can make a significant contribution. However, to be on track by 2025 to close the emissions gap and avoid further accelerating climate change impacts, the potential solar capacity ramp-up is far larger than industry analysts today expect, resulting in up to 4.8 terawatts above current forecast of cumulated new solar capacity by 2025. Executive summaries of the results can be downloaded from the REC website (www.recgroup.com) The complete study will be published for the Intersolar Europe, June 22-24, 2016, where REC will be present at booth A2.380. The results of the REC study – one of the first in the world to calculate the specific impact of COP21 for the solar industry – come at an opportune time for global efforts to drive down emissions. Governments are meeting this week for the UN Climate Change Conference in Bonn, Germany, to move ahead with the landmark Paris Climate Change Agreement, and prepare for the 22nd Conference of the Parties (COP22) to be held later this year. At COP22, governments are targeting an accord on the rule book of the Paris Agreement, hammering out concrete steps for taking the agreement into force. To meet the targets agreed in Paris, there will have to be quick and substantial reductions in greenhouse gas emissions in the decades ahead. One key area investigated in the REC study is the shortfall in many countries around the world between renewable energy commitments and emission reduction targets. The German power sector, for example, will have to reduce emissions by 1.152 Gt by 2025 (equivalent to taking 50 million cars off the road) to be on track for the COP21 target of keeping the global temperature rise below 1.5ºC. The REC task force has calculated that Germany will have to almost fully eliminate coal – which still accounts for 45% of the country’s electricity generation mix – to close its cumulative emissions gap by 2025. To replace coal and concurrently deliver on the

A study by a special intelligence task force at REC shows how solar energy can make a significant contribution to limiting the global temperature rise. commitment to phase out nuclear, Germany will need to add an average 8.31 GW of solar capacity every year – ramping up solar by 4.6 times the current forecast. Coal is in fact an issue in all of the countries that REC investigated. The Netherlands, for instance, whose share in total global CO2 emissions is just 0.4%, is the fifth-worst environmental performer in Europe on the 2015 Environmental Performance Index, with increased use of coal the reason for the poor ranking. The REC study calculates that a sharp ramp-up of solar and wind energy (with cumulative additional solar capacity of 14 GW, less than double the current forecast) will make coal fully dispensable as of 2023. In the USA, cumulative solar PV installations of approximately 790 GW will be required to keep the country on track to meet its share of closing the emissions gap by 2025 in the power industry. That is four times the current forecast installations through 2025. For Japan, the world’s fifth largest emissions emitter, the REC calculations demonstrate that the country’s COP21 pledge to reduce emissions by 26% by 2030 compared to 2013 levels falls short of what would be required considering Japan’s 3% share in global emissions. Using solar to close part

of the gap, Japan would need cumulative additional solar capacity of 250 GW by 2025, more than three times the current forecast. Steve O’Neil, CEO at REC, summarizes the outlook: “The results of our calculations are eye-opening. Comparing emissions forecasts under current policies and to limit temperature increase to 1.5ºC, the world needs to reduce a significant cumulative amount of 144 Gt of CO2 emissions by 2025. Since one third of energy-related CO2 emissions worldwide are from the power sector, REC believes that solar can make a significant contribution – specifically, 25% – to reducing emissions, which in turn will contribute to limiting the temperature increase. And the earlier the world begins to accelerate the pace of installations, the less capacity will be required at the end.” As REC has calculated, this will require a sharp ramp-up of solar capacity, reaching installations of 1.7 terawatts in 2025 alone, nine times the forecast based on the current trend. REC will continue to leverage this incredible momentum for solar with expanded capacities, new business models and increased activities in new emerging markets. www.recgroup.com

Energy Manager Magazine • June 2016

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Legislation

Getting ready for HECA Dale Hoyland, Local Authority Services Manager, National Energy Foundation

• •

• Dale Hoyland is Local Authority Services Manager at the National Energy Foundation. He leads on HECA, training and Affordable Warmth services and works closely with many local authorities across the south-east region and beyond.

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he next Home Energy Conservation Act (HECA) reporting deadline is 31 March 2015. By then, councils will have to report on their actions from their last reports, set out their energy-saving ambitions and targets, and outline the key actions and partnerships needed to deliver them. Under the guidance produced for the original legislation, “Local authorities are uniquely placed to assess the needs of their areas and local residents and to act as catalysts for change. The Act recognises local authorities’ ability to use their position to improve the energy efficiency of all residential accommodation (such as owner-occupied, privately rented and social housing) in their areas.” (Guidance to English Energy Conservation Authorities issued pursuant to the Home Energy Conservation Act 1995)

It’s quite likely that some councils will need help to achieve what’s asked of them. Some will struggle with the necessary resources, skills and tools, while simply making things happen might also be an issue. During the winter heating season, it’s crucial that councils ensure that they make best use of all available grants – helping to tackle fuel poverty and achieve carbon savings for their local areas.

You might need help with HECA Here at the National Energy Foundation, we provide tailored, cost-effective services to suit local authorities’ individual requirements, enabling them to meet their statutory requirements. There’s a range of external services a council might need:

28

Requires the publication of a publically-available report on the

Evaluation of its current home energy efficiency improvement projects. Feedback and the gathering and disseminating of ideas for future projects. Help gaining recognition for successes achieved since its 2012 HECA submission.

HECA services available •

An ideal service would be based around: Data analysis. Obtaining, analysing and interpreting data relating to buildings, insulation, energy consumption and socio-economic factors. Based on this analysis, an interpretive report should be produced, which can be used to inform an area-based approach to home energy conservation, target affordable warmth measures and identify funding opportunities. Policy review. Desktop research and gap analysis of existing strategies and policies from the council and its key partners. Information on on-going initiatives should also be considered at this stage. Feedback. A strategy workshop involving the council’s key personnel and stakeholder organisations. Strategy preparation. The production of a draft strategy and action plan, which will meet HECA requirements and serve as a fuel poverty and energy conservation strategy, building on the work done for the first ‘New HECA’ submission in 2012.

For more information visit www.nef.org.uk •

The HECA guidance also •

council’s plans to achieve improved energy efficiency, and for the council to report on progress in implementing the proposed measures every two years. Asks for targets to be set and a timeframe for delivery to be in place. Encourages working with key local partners, such as social housing providers and community organisations, to develop and implement the plan. Encourages the take-up of financial mechanisms from central Government initiatives such as the Green Deal, Energy Company Obligation and Renewable Heat Incentives.

Expert input into its HECA report. This should align with and support other activity – for example, help target where area-based approaches should take place for maximum benefit, as well as grant/project management. A basis for the roll-out of targeted approaches, with maximum benefit.

Energy Manager Magazine • June 2016


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District heating

Vital Win for York Teaching Hospital

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ital Energi & Vital Efficienci are celebrating after their work in partnership with York Teaching Hospital NHS Foundation Trust took the prize for Retrofit Project of the Year at the Heating & Ventilation News Awards.

The project saw Vital Energi design and retrofit an existing energy centre, including a 1.2MW Combined Heat and Power Engine, while Vital Efficienci implement a range of energy conservation measures such as upgraded Building Management System and replacement of 5,400 lights. Mike Cooke, Regional Director for Vital Energi commented, “York NHS Teaching Hospital NHS Foundation Trust have an absolute commitment to reducing their carbon emissions and lowering their energy spend and we are thrilled that has been recognised with another national award. This is a wonderful example of the kind of savings which can be made in the public sector and I hope its success convinces more like-minded organisations to follow their example.” Vital Energi have also provided an Energy Performance contract on the project, which guarantees that the Trust save in excess of £12 million in energy costs and

over 45,000 tonnes of CO2 reduction over the course of the 15 year contract. Brian Golding, Director of Estates & Facilities, from York Teaching Hospital NHS Foundation Trust commented, “The risk transfer arrangements provided under this contract coupled with the guaranteed savings have allowed us to go further faster than would otherwise have been possible. Having built up great working relationships with the Vital team we were confident to roll out similar schemes at our Scarborough and Bridlington sites.” Vital Energi also won the District Heating Project of the Year category for their work in partnership with Camden Council on the Somers Town Decentralised Energy Network. The project has seen Vital Energi design and install a district heating network and energy centre which will serve 339 houses across four estates in the first phase and by phase 2 the network will save over 1,000 tonnes of CO2 per annum.

District Heating Network Completes at £330m Campus

T

he University of Northampton is relocating to its new £330m Waterside Campus, located on a 58 acre brownfield site, and Vital Energi have completed the 1,600m district heating network which will carry low-carbon heat and hot water throughout the campus. The £1.25 million design and build contract was scheduled for 35 weeks and Vital were responsible for delivering the district heating network and other utilities including HV cabling, cold water and gas pipework. Contracts Director, Steve Webster said, “This is a major development for the area, so it is fantastic to see that the university have put district heating at the heart of their energy infrastructure, creating a low-carbon, efficient network which can deliver green heat and hot water for decades to come. “It is encouraging to see a brownfield site, which housed a power station and

30

Energy Manager Magazine • June 2016

cosmetics factory, transformed into a vibrant and bustling campus and we are delighted to have worked in partnership with the University to deliver the multi-utility infrastructure behind it.” The new campus, which is scheduled to open in September 2018, will provide state-of-the-art academic facilities for 15,000 students, residential facilities for 1,200 students and leisure facilities. Bob Griggs, Project Director at the University of Northampton said, “Developing the University’s commitment to our sustainability agenda and environmental infrastructure has been a key factor in the development of the University’s Waterside Campus, working with Vital Energi we have a sustainable, future proof heating network which will service the campus well.” For more information visit the Vital Energi website at www.vitalenergi.co.uk


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Energy Manager Magazine June 2016