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December 2016

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Growth of Biomethane Sector Helps AD Generate More Energy Than Landfill Gas

The Benefits of Daylight Harvesting

Carbon Offsetting Opportunities for Local Authorities


FRONT COVER STORY:

DeCember 2016

www.energymanagermagazine.co.uk

Office Lighting - Now is the Time for Retrofitting LEDs See Page 14

December 2016

14 Office Lighting Now is the Time for Retrofitting LEDs INSIDE THIS ISSUE:

PUBLISHER: Ralph Scrivens ralph@energymanagermagazine.co.uk PRODUCTION: Lucy Drescher lucy@energymanagermagazine.co.uk ACCOUNTS: accounts@pssmagazine.co.uk PRINT: Mixam Print

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Growth of Biomethane Sector Helps AD Generate More Energy Than Landfill Gas

The Benefits of Daylight Harvesting

Carbon Offsetting Opportunities for Local Authorities

INSIDE:

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RINNAI VERSATILITY COVERS ALL NEEDS, all SITES

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Waste not want not

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Grundfos answered the call

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Hospital given a clean bill of health

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Condensing boilers blaze new trails for low NOx emissions

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Councils switching on to the savings of energy efficient technologies

Single copies £10. Some manufacturers and suppliers have made a contribution toward the cost of reproducing some photographs in Energy Manager.

PAPER USED TO PRODUCE THIS MAGAZINE IS SOURCED FROM SUSTAINABLE FORESTS. Please Note: No part of this publication may be reproduced by any means without prior permission from the publishers. The publishers do not accept any responsibility for, or necessarily agree with, any views expressed in articles, letters or supplied advertisements. All contents © Energy Manager Magazine 2014 ISSN 2057-5912 (Print) ISSN 2057-5920 (Online)

Energy Manager Magazine • December 2016




News

Council energy officer wins Sustainable Energy Champion of the Year

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ne of the council’s lead officers for its energy programme has been named the South West’s Sustainable Energy Champion of the Year at a recent award ceremony. Mareike Schmidt, Bristol City Council’s Service Manager for Energy, was recognised at Regen SW Green Energy Awards on Tuesday (29 November) for her strong leadership in turning the city into a hub for sustainable energy. Mareike has been the driving force behind the council’s investment in renewable energy technology over the past three years. In that time she has been key in the development of a multi-million pound solar investment programme, creating a match-making service to make sustainable energy more accessible to local communities, championed energy efficiency and helped to launch the UK’s first municipal energy company for social good, Bristol Energy. Mareike said: “I am delighted to receive this award. These past years have not been without their challenges but I am

very proud of the work we’ve achieved so far. I’d like to thank my team and everyone who has supported us and hope that we will continue to break new ground for Bristol working towards a more sustainable future.” Cllr Helen Holland, Bristol City Council’s Cabinet Member for Place, said: “We are all very proud to have Mareike as part of the team at the council. Her work has been a key part of developing Bristol as the green city we all want it to be, and has helped to put us on the map as somewhere with environmental concerns right at our core. “Through her strong leadership, she has helped transform our city’s attitude towards sustainable energy. On behalf of the city council, and the city, I’d like to take this opportunity to thank Mareike for her dedication and the ground-breaking work she does to make Bristol a greener and more sustainable place to live. “Congratulations on this award Marieke and thank you for all that you do. We all wish you luck as you continue to work to help us meet the environmental challenges ahead.”

Mareike Schmidt (centre) receiving her award at Regen SW Green Energy Awards

Regen SW Green Energy Awards is an annual ceremony that aims to honour the innovation, dedication and creative ingenuity that has helped to put the South West at the forefront of green energy innovation in the UK. This year the awards were held at the Bath Assembly Rooms. The judging panel consisted of representatives from a range of public, private and charity organisations including the National Trust, WWF, the Institution of Civil Engineers and the Department for Business, Energy and Industrial Strategy. www.bristol.gov.uk/energyservice

Inspiring, informing and connecting the entire built environment with solutions to build better communities

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cobuild is the UK’s largest and number one event for specifiers across the built environment. No other UK event attracts 33,319 high calibre, senior level decision makers and influencers from architects and developers to local government and major infrastructure clients. In 2017, the event will return on 07-09 March, with a renewed focus on enabling sustainable construction for 2017 and beyond. With Lead Partner the UK-GBC, Ecobuild 2017 will explore sustainability as a driver to innovation and growth, a catalyst for regeneration and as a way for organisations to do better business. This year the event theme is Regeneration. Ecobuild 2017 will be regenerated into an immersive city complete with main street, distinct destinations and special feature attractions. Central to the experience will be Regeneration Drive, a boulevard running through the middle of



Ecobuild, linking different aspects of the exhibition and enabling you to experience the very best examples of innovation and creativity from across the built environment. In the lead up to the event, Ecobuild will be driving industry-wide conversation around the ongoing evolution of sustainability. Industry professionals can get involved in the conversation on social media using #SustainabilityIs

Energy Manager Magazine • December 2016

Get involved... If you’re interested in exhibiting alongside the world leading brands in construction, get in touch with a member of the team today - www.ecobuild.co.uk/exhibit/ book-your-stand Or interested in joining over 33,000 industry professionals? Ecobuild 2017 is free to attend! Get your free ticket here https://registration.n200.com/survey/ 0dcugi1l7eh4g


News

NEXT FOUR YEARS CRITICAL TO MEETING PARIS AGREEMENT TARGETS

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40 Cities Climate Leadership Group (C40) and consultants Arup have outlined the first emission reduction plan in order to meet the most ambitious Paris Agreement targets to keep global warming below 1.5 degrees Celsius. According to Deadline2020: How Cities Will Get the Job Done, the world’s megacities must act to peak emissions by 2020 and pursue bold emissions cuts with the goal of reaching carbon neutrality in 2050. If all cities of 100,000 people or more follow on the recommendations in the report, the world will achieve 40% of the reductions necessary to avoid catastrophic climate change. Cities are already leading the way on climate action by benchmarking and reducing emissions across the board. But according to Deadline2020, the world must halt the growth of emissions in the next four years, with the ultimate goal of decreasing emissions globally by 2030. For C40 cities, this means nearly halving carbon emissions for every citizen, from an average of 5 tonnes CO2e per capita today to 3 tonnes CO2e per capita by 2030. According to the report, achieving this goal will require approximately $375 billion in investment by national governments and the private sector over the next four years – investments that will transform and improve entire economies by creating jobs, bolstering infrastructure, improving public health and making cities more liveable. Deadline2020 provides concrete steps for cities to meet their part of this obligation, offering a roadmap of thousands

New report provides concrete recommendations for cities to meet aggressive goals and halt climate change of actions. A full link to the report can be found on www.arup.com/deadline, however, key recommendations include: • Ramping up action: 11,000 actions are already underway in C40 cities. Within four years, 14,000 additional Actions will have to be in the pipeline across C40’s membership, moving from planning and pilot stages to full transformative, city-wide initiatives. • Focus on buildings and transit sectors: Taking these Actions and ensuring 54% are at a transformative, city-wide scale by 2020 is fundamental to reaching zero emissions by 2050. • Smart urban planning can make all the difference: the development of compact, connected, and coordinated cities enable significant indirect emissions savings and compound the effects of savings achieved in the main emissions sectors. Partnerships and collaboration within cities will be fundamental to delivering the Deadline2020 Action pathway, but are not sufficient. Cities must work beyond administrative boundaries, collaborating with regional and national-level actors and more to ensure the national and international infrastructure that supplies them is also transformed to meet future targets.

“Cities are rising to the climate challenge. They are engaging with each other, working together, weaving a web above and beyond national and cultural differences.” Said Paris Mayor Anne Hidalgo, C40 chair-elect. “We need to bring in citizens and the private sector. We must reach the leaders of global finance, to join us in bringing about the energetic and ecological shift towards a climate safe world. ” Paula Kirk, Cities and Climate Change Leader at Arup, said: “For the first time our cities have a plan to follow to reduce their emissions. Arup is working with cities around the world to help them understand what they can do in practical terms; making sure infrastructure is designed and engineered in a way that put cities on the right trajectory. Our ambition is for this plan to reach beyond the C40 cities to show other cities around the world that action is possible and achievable – the world can deliver on the Paris Agreement.” C40 is a network of 90 world cities committed to tackling climate change, which represents 650 million people and 25 per cent of the world’s GDP. C40 worked with global engineering and consulting firm, Arup, to develop research and the evidence based model which underpins the Deadline 2020 report.

Smart Buildings, Connected Homes, and Energy Efficiency Fuel Growth Opportunities

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ew applications and Internet of Things adoption enable growth of innovative new business models, finds Frost & Sullivan’s Energy & Environment Team The transformation of the lighting industry to light-emitting diode (LED) solutions is the biggest disruption the lighting industry has ever witnessed. Advanced lighting control and light management solutions have a significant opportunity to bring to life the benefits of LED lighting in terms of energy efficiency, advanced functionality and exploitation of growth in new applications beyond

illumination. Cloud-based light management systems (LMS) solutions will be a key enabler for new business models for lighting, such as remote management and control and light-as-a-service (LaaS), while LED and Internet of Things adoption will drive growth in this sector. According to European Market for Lighting Controls and Light Management Systems, new analysis from Frost & Sullivan’s Homes & Buildings Growth Partnership Service programme, the market is hindered by: • Affordability and return on investment for end users restricting the pace of

LC-LMS adoption; and The lack of certified technical training to build awareness across stakeholders and channel partners in relation to the latest developments in LC-LMC product variety and options for IoT. Innovative, market-leading companies such as Philips Lighting, Schneider Electric, ABB and Zumtobel Group are bringing lighting to the centre of an integrated connected home solution rather than focusing solely on lighting as a functional application. •

Energy Manager Magazine • December 2016




News

RINNAI VERSATILITY COVERS ALL NEEDS, all SITES

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innai’s range of gas fired continuous flow hot water units are versatile and flexible in any application, on any site, delivering almost limitless hot water on demand. The company’s Infinity units offer a viable solution for showering, bathing and washing in all types of domestic dwelling and also satisfy hot water demand in office buildings, large and small commercial premises, hotels, hospitals and care homes, leisure centres, caravan sites – and even horsewashing! Even when used as a booster to renewables such as air source heat pumps or solar thermal these technically advanced units will be cost efficient, environmentally friendly and fuel efficient. For example, Rinnai units are favoured by the 20-bed Brig of Orchy Hotel, which sits in a prominent roadside location close to the West Highland Way. Near Glencoe, the area is a walkers’ paradise and has the best climbing, walking and skiing in Scotland, so the hotel has high occupancy rates all year around. Two Rinnai HDC 1200i units meet and exceed the huge demand for hot water at peak times. De Vere has also installed Rinnai technology at the prestigious de Vere Village Hotel in Warrington. Six Infinity HD50i units are capable of producing hot water at 780 litres per hour at a 50°C rise. The HD50i is a fully modulating 54kW unit that can also be installed in a manifold arrangement ensuring the system will meet any hot water demand even at peak times. At Sunbourne Glan y Mor Leisure Park in West Wales, owner Will Jones says: “During the peak season our shower block can be providing 80 showers a day falling to as little as 10 off season. The great thing about

the Rinnai system is that it doesn’t use fuel until the outlet is turned on for each individual shower – it only heats the water that is being used at the time. Before we rebuilt, we had an old system tank which went cold when demand was high. Now we have the two HDC 1500i Rinnai boilers manifolded together so there is no problem of hot water running out at peak times and importantly no more complaints. And we don’t have to heat up a tank of water.” Rinnai HDC1500i turns in 104.5% net efficiency* and when used in a solar thermal set up guarantees considerable ongoing energy savings when compared with traditional storage systems. Rinnai is also proving to be a thoroughbred in equine care in the form of the newly developed Ascot Hydra Horse Washer. A ‘light bulb moment’ struck Colin Davies, managing director of Ascot Hygiene, when he looked at a small electric dog wash unit he had designed for sprucing up man’s best friend (and the walker’s wellies) after a muddy run. “Why not make a bigger one for horses?” he mused. It didn’t take him long to identify the Rinnai Infinity 17e LPG unit as the central component of what was to become his innovative Ascot Hydra Horse Washer solution. With a Rinnai Infinity heater here are no sudden changes in water temperature thanks to the digital temperature controller so, if somebody is showering at 42°C and a tap is turned on elsewhere, the temperature will not vary. As a failsafe, the unit will automatically cut the heater should the temperature rise by 3°C above the chosen set point. In effect, Rinnai can guarantee a never-ending stream of safe temperature controlled hot water any time of the day or night.

The appliances are also suited to LPG with the energy savings and high performance still guaranteed. Controls are also a major step forward in achieving best efficiencies whether local or integrated into a building maintenance system. Rinnai has developed its own BMS Gateway interface for its award winning Infinity condensing range offering the prospect of higher energy efficiencies for commercial buildings offering ultimate control in large buildings, including multi-tenanted sites. Not only will building owners be able to slash both running costs and reduce embedded carbon, they will easily meet – and surpass – the demands of CSR requirements and current and future legislation. All water-heating products sold in the UK need to meet minimum energy performance criteria in order to be legally placed on the market, and require an energy label. * In accordance with BS EN 677

For more information on the RINNAI product range visit www.rinnaiuk.com

Firms warned of ‘energy black hole’

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ompanies risk “sleepwalking into an energy black hole” as a result of rising oil prices, increasing non-energy costs, the low pound and the onset of winter. That’s the dire warning of leading energy procurement specialist Businesswise Solutions, who says that increase in business energy bills in 2017/18 is inevitable. Frazer Durris is the managing director of Businesswise Solutions, which has offices in Lancashire and Manchester and says most companies don’t realise they will be facing increases up to 30 per cent, per year in energy costs from next year. He said: “We hear a lot about the pension black hole but I’m concerned about the energy black hole. The combination of the



low pound; uncertainty over Brexit; rising wholesale energy costs, some fundamental changes in non-energy costs and the onset of winter, have created the perfect storm and the potential for an energy black hole to appear on company balance sheets. “We buy and manage energy for companies that typically spend between £100,000 up to £20m per annum. If the customer is spending £5m on energy it wouldn’t be uncommon to see an increase to £6.5m a year from 2017. “It puts pressure on the bottom line for both large corporations and smaller owner-managed organisations and it is vital, now more than ever, that future energy strategies for these operations are discussed at board level. “The wholesale energy cost has gone up

Energy Manager Magazine • December 2016

significantly in the last month. In the past fortnight the oil price has increased by 15 per cent alone and it’s forecast that cost could rise to up to $60 a barrel.” Durris said the onset of winter always sees a spike in energy consumption, which is why the National Grid recently put two UK coal power plants on standby this winter at a cost of £77m to reduce the risk of electricity blackouts. The energy specialist advised companies to act now to mitigate the risk of rising costs. “They need to look at how they buy their energy and ensure they have a robust management strategy to offset the impact,” he said. “Basically they need to reduce the premiums they’re paying to suppliers, look at how they manage it and make a concerted effort to reduce consumption.”


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News

Growth of biomethane sector helps AD generate more energy than landfill gas

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atest figures from the Anaerobic Digestion and Bioresources Association (ADBA) reveal that the UK’s 540 anaerobic digestion plants now generate more energy than the landfill gas sector, and represent two per cent of UK gas production. The AD industry’s success in the past 12 months – during which time over 100 new plants have come on stream – can be largely attributed to the growth of the biomethane sector. With a total of 86 biomethane plants having applied for support under the RHI, the biomethane sector currently generates 2.6 TWh of energy, enough to heat 167,000 homes or the whole of Cardiff.

Putting green gas at the heart of UK energy policy However, ADBA believes that with the right support, biomethane, or ‘green gas’, can deliver as much as 80 TWh – 30 per cent of household gas demand or sufficient fuel to power 80 per cent of lorries by 2030. Following the KPMG report on 2050 UK energy scenarios, and the integration of energy and industrial strategy into one government department, moving green gas up the political agenda to ensure this potential becomes reality will be high on the agenda at the ADBA National Conference 2016. Now in its eighth year, and taking place at One Great George

Street, Westminster on 8 December, the conference will bring together industry, academia and policy makers to assess how the UK’s changing relationship with the world and the priorities of a new government can create future opportunities. Key speakers include Matthew Bell (Committee on Climate Change), Rt Hon Caroline Flint MP, Richard Court (National Grid), Chris Huhne (Former Secretary of State for Energy and Climate), Dr Richard Swannell (WRAP) and Iain Gulland (Zero Waste Scotland). “AD-derived green gas is an important part of the UK’s energy mix as it performs two roles – it makes use of waste and is an environmentally sustainable fuel,” says Reed Landberg, Global Renewable Energy & Environment Team Leader for Bloomberg News, who will chair a panel debate on this subject. “The fact that AD is also a source of heat makes it more important still, as heat is currently centre stage in terms of UK energy policy.”

Deregulation of water sector creates opportunities The future of the water sector will also be a key topic for debate. Ofwat’s Water 2020 offers a vision for greater deregulation, including around the treatment of sewage sludge, and although some experts believe

that the water sector is already sufficiently developed, others feel this presents a real opportunity for the wider organic waste sector. “Today, more than 15 per cent of the total sewage sludge produced in England and Wales is not being treated by anaerobic digestion,” says Alison Fergusson, Principal Engineer, Water 2020 programme, Ofwat. “And this sludge is produced day in day out. Ofwat’s Water 2020 programme will make it easier for those interested in making the most of this bioresource to identify commercial opportunities and get into the business of treating sewage sludge and generating renewable energy from it.” Alison is part of an expert panel who will debate this topic in detail at the ADBA National Conference. Alongside these industry hot topics, the event will also consider whether food retailers could be the saviour of small scale AD; what industry can learn from nature; why England is still lagging behind Scotland, Northern Ireland and Wales in regard to separate food waste collections; and how the biomethane sector will develop between 2017-2021. For the full programme and to book your place, go to adbioresources.org


News

Climate actions of leading states and regions across the world are putting a 2˚C world within reach, shows new report

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he Compact of States and Regions reveals, in its annual report, that the vision set out in the Paris Agreement is within reach. Delivering on all disclosed 2020 targets in time would result in savings that put these governments on track to stay below the critical warming threshold of 2˚C above pre-industrial levels. The report provides valuable insights to support national governments heading into the ‘2018 facilitative dialogue’, aimed at raising ambition in the next round of Nationally Determined Contributions (NDCs) and shows how many disclosing states and regions are ahead of schedule. Patricia Espinosa, Executive Secretary of UN Framework Convention on Climate Change said in the report’s foreword: “The report is powerful evidence how these governments continue to go the extra mile in bold climate policies and action. It is particularly heartening to see that some states and regions are already targeting net zero emissions. The [Paris] Agreement’s strength rests not just on central government action but the unprecedented support and growing enthusiasm of business, investors, citizens, cities, states, provinces and regions.” The Compact of State and Regions urges governments to step up their long-term ambition to match the required rate of decarbonization and complement their goals with deep de-carbonization pathways. At the same time, the report also highlights that governments of six major states and regions have already met or exceeded their 2020 targets, four years ahead of schedule, including: Scotland, Catalonia, Lombardy, Carinthia, Connecticut, and Provence-Alpes-Côte d’Azur. Many others are on the verge of doing so. 65% of governments disclosing a base year emissions reduction goal are currently below their base year emissions. Roseanna Cunningham MSP, Secretary for Environment, Climate and Land Reform for the Scottish Government said: “I am pleased to say that Scotland has achieved it emissions reduction target of 42% by 2020 six years early with emissions down by 45.8% between 1990 and 2014. We are proud of the progress we have made but we know we can go further. In 2017, the Scottish Government will bring forward a package of measures to ensure that Scotland continues to cut emissions.” The Compact, which is a collaborative initiative between The Climate Group and

CDP, has grown significantly since it was launched in 2014. The number of governments taking part has increased by 41% this year, reaching a total of 62 states, provinces and regions by the time of COP22 in Marrakech. These governments are responsible for a collective total of over 3 GtCO2e, more than the total combined emissions of India and Canada, and $12.9 trillion in GDP – or 17% of the global GDP. New members have joined from around the globe, including Gujarat, Cross River State, Minnesota, Hidalgo and Veneto. Dr Alice Ekwu, Commissioner for Climate Change and Forestry, Cross River State, Nigeria said: “The Compact of States and Regions provides the much needed platform for state and regional governments to share their success and challenges in one common pursuit to commit to GHG emission reductions and make the world a better and more prosperous place.”. The report shows that states and regions across the world are currently on the right trajectory to mitigate the impacts of climate change in the immediate future. The size and scale of the governments involved in the Compact shows that whatever happens at the national level, these governments will continue to play a key role in hitting the targets set out in the Paris Agreement. Damian Ryan, the acting CEO of The

Climate Group said: “The high level of action that we have seen from state, provincial and regional governments over the past two years has taken place against the remarkable backdrop of the signing and ratification of the landmark Paris Agreement. The work by these states and regions show that as the world becomes more uncertain at national level, governments of states and regions are in the vanguard for driving climate action forward.” The report also highlights that states and regions are backing up their climate goals with a variety of specific climate actions. This year alone, 1,299 individual climate actions were disclosed across ten economic sectors. Many governments, including California, Jalisco, New York State, Newfoundland and Labrador, Northwest Territories, Sardinia and Oppland indicated that tackling short-lived climate pollutants (i.e. methane, black carbon O3, HFCs) is one of their key priorities in the next two years. Paul Simpson, CEO of CDP said: “We have seen Compact governments double down on cutting their region-wide GHG emissions and setting more reduction targets. We call on more governments to join the Compact, reduce their emissions and commit to transparent annual disclosure. Our journey has only just begun.”

Energy Manager Magazine • December 2016




News

In the dark: E.ON poll finds half of senior managers don’t know how much their company spends on energy

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espite a fifth (18%) of UK firms spending a quarter of a million pounds (£250,000) each year on energy, a new report from E.ON has found that almost half (46%) of senior business managers admit to having “no idea at all” of what their company spends on energy. The poll of 760 senior UK managers and directors across medium and large businesses was conducted by E.ON and Telegraph Media Group. It found that two thirds (67%) of senior managers say they have no understanding of how their business buys its energy, or even who buys it (54%). Nearly half (46%) confess to having ‘limited understanding’ of costs. This lack of understanding means businesses may be missing opportunities to save money, improve sustainability and potentially generate income from participating themselves in energy markets.

Why aren’t business leaders plugged into the system? No matter how strong the financial or social case put forward, over half of people (53%) report that their management board has a ‘negative’ or ‘neutral’ response to the importance of an energy strategy. Fewer than half of respondents thought there was a need for companies to have a short-term energy policy (48%). When trying to understand this lack of interest in energy strategy from board members not involved in energy decision making, the key issues cited were lack of time (43%), lack of resources (39%), funds (37%) or knowledge (36%) respectively.

Empowering strategy change Despite the lack of understanding from the senior leadership in businesses, the majority of large businesses (68%) in the poll and almost half of smaller businesses (42%) do have someone responsible for looking at energy strategy. Of those energy decision-makers (EDM), three-quarters (76%) have a reduction strategy planned, plus 68% also have a thought-out compliance and legislation process. 40% even have plans in place to create revenue generation from surplus production. However, energy decision-makers need widespread buy-in for these plans to become fully effective. The plans also need

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to be championed by a board-level director, and unfortunately, a third of EDMs (36%) currently do not believe their board places enough importance on energy as part of an overall business strategy. Phil Gilbert, Director of Customer Solutions at E.ON for Business, said: “Energy is changing, with new solutions that give businesses of all sizes the power to control their energy use, improve competitiveness and also put money on the bottom line. To make the most of this opportunity energy needs to be thought about in the right way and at the right level – this is a strategic decision that rightly sits in boardroom discussions. “For all businesses, there are opportunities to both implement more sustainable energy programmes and reduce internal costs. The energy buying process however just needs to be identified, understood, and then explored in the right way by the business. We’ve seen dramatic change in many customers’ overall energy strategy that has both improved sustainable practice and also saved money in short and long-term. “Our ambition is to partner with business to provide opportunities to help them understand, control and manage the cost of energy use over the long term. The focus needs to be on managing overall costs rather than the simpler pence-per-unit of energy supply.” E.ON’s advice to senior leaders looking to improve their energy strategy: • Making energy part of a boardroom discussion can create opportunities to make businesses more competitive. It can start with simple compliance against Government legislation and putting in the monitoring systems to give you back control of your energy use. From there it can expand to much more active control, and even create new revenue streams. • It’s important not to think of energy as a fixed cost. Small changes, such as encouraging staff to turn-off lights in empty rooms or powering down PCs when not in use, can have a dramatic effect on costs. Swapping fluorescent tubes for LEDs, for instance, can slash lighting costs by as much as 50%. • Businesses may benefit from keeping a closer eye on the ‘where and when’ of energy costs – either through smart meters or consumption data toolkits,

Energy Manager Magazine • December 2016

businesses can have more control over their energy consumption and production and use both to their advantage. Employees are at the heart of an energy strategy. After all, the amount of energy consumed by the individuals within a company directly correlates to the overall cost of consumption. It is important to appreciate that any behaviour change work may take time to become intertwined into the overall company culture. Generating your own power can put control firmly into your hands. For instance, by investing in new energy solutions, such as solar panels or CHP, as well as the financial savings, you may also unlock new growth, improve productivity and overall competitiveness within your industry. Similarly, many businesses, particularly those that function with an on-site production line or product manufacturing process may take advantage of CHP technology. CHP is on-site electricity generation that captures the heat that would otherwise be wasted to provide useful thermal energy, such as steam or hot water. This can then be used for space heating, cooling, domestic hot water and other industrial processes, which can overall slice costs in the long run. The next step may be to participate in Demand Side Response schemes where businesses can be paid for helping to balance the energy system. In simple terms that means businesses get paid for managing how and when they use electricity – reducing demand or using their own generation at peak periods for example – as well as avoiding costly capacity and transmission fees by using less power at peak periods. On-site generation also allows you to where businesses can be paid for helping to balance keep the energy system. In simple terms that means businesses get paid for managing how and when they use electricity as well as avoiding costly capacity fees by using less power at peak periods.

andrew.barrow@eon-uk.com


Opinion

Not working 9 to 5

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olly Parton (and Sheena Easton) had hit records with the song “9 to 5” bemoaning the lot of office workers required to be at their desks for those prescribed hours. Well that used to be the standard office hours throughout the West for many years but thing have changed and the concept of “flexible hours” has become close to universal. This is generally seen as beneficial as it give greater freedom to the workers, more availability to customers and added benefits like reduced travel congestion, increased utilisation of assets and apparent increase in resource. Additionally companies operating internationally gain more overlap between time zones enabling better communication and cooperation. (I well remember working late in a Glasgow office and answering a phone call from the American Head Office at 8pm local time and them being surprised that the person they wanted had left - and Americans have time zones within their own country!).

Increasingly businesses are operating longer and longer hours - and the recent disputes on the London Underground as it prepares for overnight operation show this trend is likely to continue. But have you considered the effect this has on energy consumption? When buildings were only occupied from 9 to 5 the heating and air-conditioning could (usually) come on around 8am and go off at 5pm (at the latest). Now with occupation from 7:30 am to possibly 10pm the system will need to be energised from 6:30 am to 10pm or so. That means 9 hours becomes 15½ hours -over a 70% increase! and that doesn’t take into account the tendency to work at weekends. Now the technical amongst you will realise that 70% increase in hours doesn’t mean a 70% increase in energy consumption due to the high proportion required to initially bring the building into a condition for occupation from its rest state and obviously good control strategy like optimum start and finish will have an effect. But because the extended hours will generally have colder exterior

temperatures (and hence higher heat loss) the extra usage will be more than you might expect. To add to that because there will be more hours of darkness the lighting load on a well controlled building will be MUCH greater. To add to that lower occupancy may mean less internal heat gains, meaning people feel colder and the heating has to work harder to maintain conditions. Now because the extension of operating hours is a commercial decision involving a lot of factors most energy and sustainability managers will have little influence but they should at least try to have their voice heard and the energy and carbon implications included in the calculation. Perhaps when HMG are considering increasing Sunday trading hours they should consider the effect on their Climate Change Policy? Andy Clarke CEng MIGEM MEI FEMA Chartered Energy Engineer 2nd Row Camp Hill RFC ret’d

Environment Secretary sets out ambitions for Wales to become nation renowned for clean energy

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he Cabinet Secretary for Environment and Rural Affairs, Lesley Griffiths, has set out the steps the Welsh Government will take to reduce the amount of energy used in Wales and move from its traditional association with fossil fuels to a nation renowned for its clean energy. The Cabinet Secretary updated the Assembly on how the Welsh Government will use its devolved powers to take advantage of the many opportunities Wales has to deliver secure and affordable low carbon energy. This includes: • Wales leading the way in the UK by reviewing how we can use building regulations to build new homes in Wales which are more energy efficient and cheaper to run; • Supporting energy intensive industries to become more efficient; • Ensuring Wales secures transformational benefits from major

energy projects such as Wylfa Newydd and Swansea Bay Tidal Lagoon; • Investing in energy efficiency projects, such as Welsh Government Warm Homes Nest, which is reducing emissions associated with heating while also reducing energy bills for consumers and helping people to stay warm and healthy; • Support phasing out of unabated coal fired power, the most polluting form of energy generation in Wales, by 2025, and use planning powers to limit the opportunities for new coal development; • Set ambitious and realistic targets for renewables, including community energy. The Welsh Government is already supporting the development of low carbon energy projects in Wales, for example providing vital funding to support local renewable energy projects such as the Awel Aman Tawe Community Energy scheme in

Swansea, but would like to do even more. The Cabinet Secretary used today’s statement to set out her frustrations on restrictions caused by the UK Government’s energy policies. Lesley Griffiths said: “Wales has huge potential to host projects which generate energy on a large scale for the UK and can bring significant benefits to Wales. “If we are to deliver secure and affordable low carbon energy, we need an energy mix of different technologies and scales, from community level to major projects. I am keen to move this agenda forward so Wales benefits from this change rather than being left behind. “However, it is frustrating that the UK Government continues to create uncertainty in energy policy, with decisions driving the market away from the lowest cost renewable sources and undermining investor confidence in renewable energy here in Wales. This must change.”

Energy Manager Magazine • December 2016

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Data Collection

It’s all about ERIC!

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he Estates Return Information Collection (ERIC) is the main central data collection for hospital estates and facilities services from the NHS. It’s a resource of valuable data that enables the analysis of Estates & Facilities information from NHS Trusts and PCTs in England. And the latest annual report, published in October, reports: • Total costs covering the running of the NHS Estate was £8.3 billion in 2015/16, a small rise of 0.2% from 2014/15 • Total Energy usage from all energy sources across the NHS Estate amounted to 11.9 billion kWh, an increase of 3.5% from 2014/15 • Total capital investment in existing building and equipment has fallen 12.5% from 2014/15 If you haven’t studied the whole report, the numbers above tell much of the story – cutting capital investment across the board due to squeezed budgets and little progress made in cutting energy use, water and waste costs. This shows that Trusts are finding it increasingly hard to make meaningful cost savings without further cutting capital and maintenance budgets. However, this ‘amalgamated view’ ignores many pockets of success and case studies by some Trusts. So let’s take a look at some of the inspirational work being done by one NHS Trust to reduce their energy use and spend… At Croydon Health Services NHS Trust, a need for cost reduction and a more energy efficient approach to meeting the Trust’s demands triggered a major review of the Trust’s activities. Managers were aware that conventional energy generation has a total fuel efficiency of between 50 and 55%, while the total fuel efficiency of CHP is closer to 80% so this made it an attractive option to implement 2 x760 kWe CHP engines in 2014. This reduced their energy cost but they then needed to know that they were maximizing the potential of the CHP engines to make further cost and energy savings. Additionally the controls for the hospital heating and cooling systems were sub optimal and many areas had poor temperature control leading to over or under heating. The Trust did not have an energy manager in place, and realised that plans for establishing a strategy for reducing energy had to be approached in an inclusive and professionally structured manner that took advantage of sector benchmarking and up-to-the-minute

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Dan Jackson examines the story behind the latest NHS ‘Estates Return Information Collection’ (ERIC) report and discovers how benchmarking success is proving enlightening for energy managers

methodologies. So the Trust decided to investigate and interview specialist consultants in order to appoint a team to join and assign them to act as its energy manager on a contract basis. The Trust appointed Carbon Architecture due to their experience with advising high-energy users, and with NHS Trusts particularly. “Our consultants’ experience of managing and minimising the increasing burden of costs and legislative compliance by developing and implementing sustainable cost-saving strategies and solutions, together with their core focus on waste, energy and water efficiency solutions for the NHS was compelling. We therefore opted for Carbon Architecture’s team of skilled sustainability experts to work with our own team to help us reduce energy use and spend across the site. We also instructed the team to analyse the CHP system’s potential and present back opportunities in a quantified form that easily allowed business cases for further improvement works to be made.”

SOLUTION: The joint team started with an analysis of the Trust’s current setup and then provided comparatives of where additional efficiency savings could be made, and how the system could be optimised further. The team worked with onsite BMS engineers to analyse heat loads and target areas for improvement. They also worked with the Trust’s operator to improve CHP uptime and heat utilisation. The optimisation process looked at electrical & heat generation efficiencies and how these utilities were used on site. This showed where improvements could be made - not only to the CHP system but the wider heat use network on site.

SUCCESS: CO2e emissions have dropped by 17% and energy spend is down 35% “We have also installed and improved

Energy Manager Magazine • December 2016

Trust Estates departments are being squeezed - they have less money to spend and need to review cutting costs Trusts are having to cut their spend/services. This highlights the need for cost saving such as analysing Trust FM, energy, water spend and finding ways to reduce costs Energy use is flat – but use of benchmarking and external advice reveals tried-and-tested methods and successful strategies. Lack of consistency The NHS uses many different energy management approaches – in house/ outsourced/ hybrid/interim. Good ideas are often not reapplied

heating controls to both reduce energy use and improve patient comfort. This along with updating our plant room equipment has helped maximise the savings delivered by the CHP installation. Other energy reduction works onsite include making many improvements to the efficiency of heating, air handling, lighting, boiler upgrades, and the addition of variable speed drives. We have also appraised the space we rent out to private health companies to check they were being run correctly.” It won’t stop there! The Trust’s on-going plans are based around improving monitoring and information systems to track performance and flag issues as they occur. The aim is to respond quicker to issues and identify cost savings easier and faster. This will allow the Trust to benchmark internally as well as externally using ERIC data to leverage lessons learned and reduce costs. Leading to more optimisation of current equipment and processes – a win-win policy with no capital requirement! Dan Jackson is a Process and Sustainability expert at CarbonArchitecture.co.uk


Lighting

The Benefits of Daylight Harvesting

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inter has arrived! With shorter days and longer nights, the limited daylight hours we do get never seem enough. Light affects the way we feel, and the right light levels can improve wellbeing, productivity and help us to complete tasks more effectively. At work, we need high levels of light to stay alert. The right lighting creates a brighter, cleaner-feeling workplace and can aid concentration and accuracy in work. It is important that a workplace uses lighting or ‘lux’ levels that are appropriate to the room being used and the activities being performed. An office where Technical Drawings are created will need higher lux levels than an office canteen, for example. Different applications can require vastly different lux levels that are consistent throughout the day. At the same time, many workplaces want lighting that is energy efficient, not only in winter but year-round. One way to meet these needs is through ‘daylight harvesting’. This is achieved by incorporating light sensors, also known as photocell sensors, into a lighting system. A photocell can detect levels of natural light and adjust the artificial light level accordingly. This means that lights can be switched on as natural light levels drop, and switched off again as natural light levels increase. More sophisticated photocell sensors can dim lights gradually when they detect increasing levels of natural light. Photocell sensors provide consistent lighting levels and only use as much light as necessary therefore reducing energy usage. Photocells can be wired or wireless, integral or plug-and-play. Which one you use depends on what you want out of the photocell and the application it is being used for.

Indoor Commercial Applications If you want to light an office using a system where all lights use one photocell sensor, you can use a wired photocell. The photocell sensor acts as a switch and transfers signals to the lights connected to it based on daylight levels. You can programme the photocell to switch lights on or off or dim them, based on

pre-determined natural light levels. A wired daylight harvesting system offers a simple way to make the most of natural light and makes LED lighting even more efficient. It is a great solution for basic indoor applications with energy saving benefits. However, if you want to programme lights to accurately reach a certain lux level and achieve maximum energy savings day and night, a smart lighting system with a wireless photocell sensor is the best option. Many lighting and electronics companies are seeing the potential of wireless daylight harvesting and have developed their own systems. Electronics giant LG has developed a wireless daylight harvesting system that is smart and user-friendly. Using a smartphone or tablet, you can programme a single photocell to wirelessly control a group of lights. Programming a photocell this way allows for more user control and accuracy. This is ideal in applications where a specific lux level is required, or where you want to achieve maximum energy savings. For example, if you want to light a Reception area with a light level of 300 lux using LED downlights, you can programme the photocell to use daylight levels to determine how much more light the group of downlights will need to output to achieve the programmed lux level. Obviously, this output will vary throughout the day, and this is the key benefit of daylight harvesting; only the necessary amount of light is provided at any time, giving you year-round energy savings. A wireless daylight harvesting system also offers cheaper and easier installation, and less restriction in terms of where you install your photocell.

ideal for outdoor lighting, where robust, low maintenance units are needed to simply illuminate outdoor areas automatically. If, for example, you use wall packs with integral photocell sensors to light outdoor commercial and industrial areas, you will see increased energy savings with minimal setup and maintenance required. The only setup needed is the use of controls that allow you to select the natural light level that triggers lights to turn on or off. Another simple daylight harvesting option is a plug-and-play photocell sensor that can be attached to a lighting unit, such as a flood light. As with the integral photocell sensor, the light will operate from dusk to dawn with simple setup required, making it ideal for outdoor lighting. www.netledlighting.co.uk.

Outdoor Commercial Applications Another valuable use of daylight harvesting, especially in winter, is for outdoor lighting. As photocell sensors detect light levels and operate automatically, there is no need to set timers or turn lights on manually, which is reassuring as daylight hours change with the seasons. An integral photocell sensor inside a lighting unit provides an easy way to save energy. The photocell will automatically activate a lighting unit at night, ensuring it is operational from dusk to dawn. This is

Energy Manager Magazine • December 2016

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Lighting

Office Lighting Now is the Time for Retrofitting LEDs

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ffice lighting technology is continually improving to provide efficiency, safety and comfort benefits. In addition to the intangible advantages of a well-lit environment, there can be solid financial advantages to replacing old lights with newer technologies. In particular, retrofit-capable LED lighting enables building managers to implement replacement programmes that can be funded partly if not entirely from the cost savings achieved. Saima Shafi, Sales and Marketing Director, LED Eco Lights

Health and safety Health and safety compliance is a frequent trigger for a lighting review. Too much or too little light causes eye strain

and discomfort. It can be hard to identify and avoid hazards in areas that are underlit or have poor light quality. Bad lighting affects the quality of work and overall productivity. The flicker often generated by fluorescent light sources can induce headaches and migraines and other symptoms associated with Sick Building Syndrome. Too much light brings further issues. Glare can cause discomfort, annoyance, irritability or distraction, and can also result in visual fatigue. Where the local work area is darker than the surroundings, staff may be distracted by the contrast. Some of the technologies used in older lighting installations have health or safety issues of their own. In particular, tungsten-halogen lamps and high-intensity discharge lamps carry the risk of optical or ultraviolet radiation, which can be harmful if

too much enters the eye, and affects unprotected skin.

The maintenance challenge Sometimes outdated lighting is replaced on an ad-hoc basis when it has failed. During maintenance or following failure, different lamp types or colour temperatures may be used within the same area. Indeed, some fittings are left without a working lamp at all. Workers can find it difficult or impossible to see properly, and the inconsistencies contribute to uneven light patterns across the entire area. Fluorescent lighting does not respond well to frequent on / off cycles. When attaching occupancy sensors in busy areas, the lighting will degrade quicker than normal exhibiting the familiar blackened ends.


Lighting The benefits of LED lighting Whilst the price of improving the lighting regime can be offset against significant costs to the organisation in the form of lost working time, increased absenteeism, reduced staff efficiency and productivity, these costs can be hard to measure and quantify. Retrofit LED lighting provides a much more direct and measurable return on investment. Providing more lighting lumens per watt than most other forms of lighting, the most obvious benefit of upgrading to LEDs is the improvement in energy efficiency. This has an immediate impact on the monthly electricity spend, with a corresponding reduction in carbon footprint. In addition, LEDs provide qualitatively better lighting. For example, LED technology provides very directional light that can be focused where it is needed. LEDs are flicker-free, combatting the common problem with fluorescent lighting. High performance LED lighting is very consistent, providing a nice even spread of light, without colour shifting or contrast imbalances. Good quality LED lighting is well suited to building automation and control, as lifetime and performance is unaffected by frequent turning on and off. Furthermore, LED lighting for offices can be produced to a UGR19 (Unified Glare Rating) or below, which is recommended for use with VDU screens. All this makes a very strong case for moving to LED technology. Fortunately, this can be achieved without throwing away the existing infrastructure – and past investment. LED lamps and luminaires can be readily retrofitted within the current lighting hardware.

Reap the rewards – and save as you go The result is an immediate improvement in energy and other costs. Ballasts and control gear, which can account for 20% of the energy consumed by some lighting, are eliminated. Retrofit LED lamps from reputable manufacturers come with lengthy guarantees so that faulty products are covered for free replacement over 2, 3 and 5 year terms. In addition, retrofitting is the least business-disruptive way to upgrade existing lighting. Work can be scheduled around downtimes, evenings and weekends, so that operation can continue as normal.

Savings to meet standards Most importantly, retrofit LED lighting systems help the building meet the latest

standards and regulations including those focused on improving the energy performance of buildings. Part L (2013) of the UK Building Regulations came into force in April 2014, covering lighting performance for Residential (L1) and Commercial buildings (L2), typically those using light sources with a minimum efficacy level of 55 lumens per circuit Watt, with fixed internal lighting delivering an average of 45 Lm/W over the whole area. Lamps below 5W do not need to be included in the count towards Part L compliance. Further, it is mandated that lighting controls should be adopted to avoid unnecessary lighting at times when either enough natural light is sufficient or areas are unoccupied. With today’s LEDs capable of easily reaching 85-100 Lm/W for most commercial light sources, and up to 140 Lm/W for more industrial types of fixtures, moving to this technology already meets a major requirement of Part L compliance. Adoption of LEDs also makes it easier for building managers to fulfil requirements to incorporate lighting controls. SMART lighting goes beyond simply fitting PIR sensors to detect occupancy. Integrated controls built-into LED luminaires can detect daylight and dim down the lighting when not required, or can be pre-programmed to save energy and controlled according to user behavioural patterns. These SMART luminaires can also be grouped together so that banks of units can be controlled to the same parameters. A pre-set level of lighting can be maintained

across the whole area if required. Systems like the new Goodlight architectural lighting range of modular LED luminaires can be attached to intelligent controls that learn how the areas in an office are used, and adjust the lighting accordingly.

Quantifying the benefits Evaluation of Goodlight retrofit LED lamps and luminaires has demonstrated energy savings up to 85%. In addition to this, maintenance savings of up to 100% can be made. Typical return on investment calculations show full payback within three to 36 months. A new compliant installation can be funded essentially from the energy savings. A number of programmes including the Enhanced Capital Allowance (ECA) Scheme offer businesses tangible incentives such as tax breaks to help fund their lighting upgrades. Alongside these, commercial schemes such as BrightPlan LED Leasing allow new lighting to be leased, so that the operational savings achieved from the installation can be used to fund its cost directly. Capital budgets can be applied to other projects and tax advantages to the company realised. With industry support like this, there really is no time like the present for retrofitting LEDs. www.ledecolights.com

Energy Manager Magazine • December 2016

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PUMPS

Waste not want not

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specialist waste management company with over 300 sites in the UK are committed in their ambition to transform waste into reusable energy and high quality recyclable materials. As part of their overall environmental strategy, they recently worked with Grundfos Pumps to assess the savings potential of replacing some obsolete spilt-case pumps with new high efficiency options at one of their sites. In order to ascertain the current pump

performance, Grundfos undertook an energy check and the subsequent detailed energy check report showed that by replacing the indicated pumps, a huge saving of 297,840 kWh per annum was achievable. The decision made to replace the old pumps with Grundfos high-efficiency variable split-case options has proved to be a great success with the new pumps demonstrating their reliability, while delivering a 70% energy saving and all this with a return on investment of just 2 years. To find out more visit www.grundfos.co.uk

Grundfos answered the call

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major telecommunications call centre in London requested Grundfos undertake an Energy Check on their cooling and heating pumps to see if they could improve the efficiency of their system. This type of survey is ideal in these circumstances, as it will quickly assess typical savings that can be made. One of our specially trained energy team undertook the check that assessed all the installed pump equipment as well as looking at the current and future demands of that system. The subsequent comprehensive Energy

Check report showed that there was a lack of system control, and recommended that they replaced their installed base of obsolete heating and cooling pumps with models from the Grundfos TPE and NBE variable speed pump ranges. The report findings also showed that savings of 318,000 kWh per year would be possible with a return on investment of 2.8 years. The recommendations were accepted and a rolling installation programme was implemented. The results to date have already delivered an energy savings of ÂŁ30k+ and a large reduction in CO2 emissions. The client is very pleased with the results.

Hospital given a clean bill of health

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hen a 700+ bed hospital in the North West of the England wanted to assess the efficiency of their current pump set-up, they contacted Grundfos Pumps. The recommendation was that Grundfos would undertake an Energy Check to establish their current pump set-up and look at the associated energy usage. One of the benefits of undertaking an

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exercise like this with a pump specialist such as Grundfos is that after the check, a detailed report is produced. This report demonstrates what kWh, CO2 and financial benefits, can be achieved, by improving the system efficiency through upgrading to newer or improved pump solutions. This particular Energy Check showed that if a number of end suction and in-line pumps were exchanged for more efficient models, a huge saving of 429,645 kWh per year was indicated. The outcome of this check saw Grundfos being asked to replace the highlighted inefficient pumps with various NB, MAGNA and TP pump models

Energy Manager Magazine • December 2016

all of which combined variable speed drives and high efficiency motors. This investment will result in an excellent ROI of just 1.5 years. Hospitals, by their nature, must remain operational 24/7 and must be capable of meeting all the demands that are made of them. This means having a reliable, effective and efficient pump system that will give them the assurance they need to maintain and deliver their heating, cooling, water supply and water boosting requirements and Grundfos have the knowledge, experience and product portfolio to deliver and maintain the best solution.


District Heating

Guardbridge Biomass Scheme Claims Scottish Green Energy Award

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he £25 million Biomass Energy Centre & District Heating Network for the University of St Andrews has been celebrated at one of Scotland’s most prestigious awards ceremonies, winning the Sustainable Development category of the Scottish Green Energy Awards. The project saw Vital Energi work in partnership with the University to realise the their vision for a campus-wide low carbon energy system by refurbishing an Old paper mill building, transforming it into a state of the art Biomass based energy centre that will, in future, form the heart of a planned new technology focused business park. The new energy system feeds remote University Buildings more than 6km away through a highly thermally efficient 23km underground district heating network. The project will bring significant environmental benefits which will see carbon emissions reduced by over 6,000 tonnes per year. Mike Cooke explained, “We have worked closely with the University on this project since September 2014 and

experienced first-hand their commitment to the environment and their enthusiasm to be involved at every step of the way. We’re delighted the project has been recognised at this prestigious event and we would like to acknowledge the patience and support of the local residents and project stakeholders who experienced disruption while the heat network was formed.” In addition to the building, mechanical and engineering works, Vital Energi took part in the Guardbridge Guarantee, helping the University to ensure that the project also delivered tangible benefit to Scotland and the local community. Vital Energi worked closely with all stakeholders including local residents and businesses to maximise local spending (73%) and local employment. 433 local people have benefitted from employment associated with the implementation and continued operation of the scheme over the next 5 years, 79% of those are employed live within Fife and Central Scotland. Professor Verity Brown, Vice Principal (Enterprise & Engagement), said: “To win such a prestigious award against

competition from across Scotland is an outstanding achievement. The energy centre at the Eden Campus at Guardbridge is a remarkable engineering project which would not have been possible without our partners, Vital Energi. “It is a project that would not have possible without the forbearance and support of local people in and around Guardbridge.” www.vitalenergi.co.uk

Double Whammy as Cranbrook and Skypark Power Through at Energy Awards

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ranbrook and Skypark has won two major industry awards for the low carbon district heating system which powers the new community and neighbouring business park. It was a clean sweep for E.ON and project partners as the scheme won ‘Overall Project of the Year’ and the ‘Homes and Communities Project of the Year’ category at the prestigious Association for Decentralised Energy Awards (ADE Awards) held in London in November 2016. The awards showcase innovation, best practice and achievement across combined heat and power, district heating and demand response and energy services. This year’s ceremony was held at London’s Natural History Museum. Shortlisted for the “Homes and Communities Project of the Year” E.ON (Cranbrook and Skypark) was up against British Gas (BGreen, Oldham) and SSE (Elmsbrook, North West Bicester) and having won that category the team took their seats for a few minutes more before the being called to the stage again to be

awarded “Overall Project of the Year”. East Devon District Council, supported by the HCA (Homes and Communities Agency), facilitated a negotiation between developers and E.ON for the construction of an energy centre and heat network in 2010. At Cranbrook, where there are now 1,500 homes connected to the power plant, approximately 2,900 homes will be fuelled through the first phase of residential development. The system is expected to provide an estimated 13,000 tonnes of CO2 savings per year, the equivalent of removing 5,200 cars from the road.

The Science Bit

to our control centre which allows E.ON to monitor and manage remotely. There is also a solar thermal project under way, the first of its kind in the UK. This innovative project combines a 1,814m2 solar array and a heat pump, capable of generating up to 2 MWth heat. It is the largest solar thermal array in the UK and the first demonstration of using a combined system of renewables and non-renewables in a large scale district heating (DH) system. For more information visit: www.eonenergy.com/for-your-business/ community-energy/what-is-communityenergy

The project includes many other technologies including Solar Thermal, Solar Photovoltaic, Heat Pump, Thermal Storage and AMR (Automatic Meter Reading). To date, the Energy Centre has a carbon saving of 28%. These carbon savings will increase as the development grows. The Energy Centre plant is fitted with a full management system which is connected

Energy Manager Magazine • December 2016

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Boilers & Burners

Condensing boilers blaze new trails for low NOx emissions

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s the campaign for cleaner air focuses attention on pollution from NOx emissions, James Porter, Sales Director at Remeha, looks at the implications for commercial boilers Improving the environmental performance of our buildings has been a key driver for energy managers in recent years, helping reduce energy waste and greenhouse gas emissions. Built environment legislation has centred on cutting carbon dioxide emissions to help achieve targets set in the UK Climate Change Act 2008. But now, with air pollution in most UK cities and towns exceeding World Health Organisation guidelines, nitrogen oxides, or NOx, are under scrutiny. 60 years since the Clean Air Act was first introduced in the UK, air quality is once again a hot topic. Poor air quality exposes the public to serious health risks, with pollution from NOx emissions linked to respiratory and pulmonary diseases. The Department for Environment, Food and Rural Affairs (Defra) claims that NOx pollution is responsible for the premature death of 23,500 UK citizens annually. So there’s strong public support for action. A YouGov survey of more than 800 people revealed that 76% want to bring their cities in line with European limits on air pollution.

New NOx legislation A number of existing and planned measures exist to minimise NOx emissions from vehicles, a key offender of air pollution. But buildings – and their heating systems – also typically emit NOx. As heating is responsible for nearly half a building’s total energy usage and its associated emissions, regulating the NOx emissions would have a positive impact on air quality. London Borough Councils and the City of London already impose maximum NOx levels from heating in new buildings. And from September 2018, new NOx legislation for space heating will come into effect for the whole of the UK and the European Union. The Ecodesign of Energy-related Products Directive will introduce mandatory NOx requirements for all space heaters up to and including 400 kW. Maximum NOx emissions of 56 mg/kWh will apply for gas and liquefied petroleum gas (LPG) boilers, with a maximum of 120 mg/kWh for oil-fired boilers. This follows on from the tighter energy efficiency standards that came into force in September 2015. The aim is to ensure that only energy-efficient, low NOx heating products are manufactured, specified and installed in the UK and across the EU.

Greener, cleaner heating So how to achieve low NOx heating? The first step should be to ensure that only high efficiency, low NOx heating equipment is installed in both new and existing buildings. Low carbon technology is not necessarily low NOx, so it is important to make certain that the product meets low NOx criteria. As a second step, check that existing heating systems also meet low NOx emission standards. The good news for energy managers is that the solution doesn’t have to be costly or complicated. In fact, for new and existing buildings, one heating technology stands out as being both affordable and practical – the condensing boiler.

Ahead of the curve Condensing technology is ahead of the curve in terms of high efficiencies and ultra-low NOx emissions. This means most commercial condensing boilers are future-proofed for the ErP Ecodesign (iii) 2018 NOx legislation. The latest models are

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Energy Manager Magazine • December 2016

designed, constructed and tested to meet the European boiler standard EN15502 Pt 1 2015 Class 6 – achieving NOx emissions as low as 35 mg/kWh. They also qualify for maximum credits for low NOx space heating from the sustainable building assessment scheme BREEAM, helping improve a building’s environmental ratings. Perhaps most importantly, condensing boilers are a tried-and-tested technology. Lighter and more compact in design, they are built for easy installation and maintenance, minimising any downtime or disruption. Recent advances include ever-more versatile configuration options that achieve higher efficiencies and greater flexibility in overcoming plant room space restrictions or constraints. Widely acknowledged as a quick win to significant carbon and energy savings in our older buildings, they also provide a simple route to NOx compliance.

The benefits And the financial and environmental benefits from energy-efficient, low-NOx heating are clear. Improving outdoor air quality with low NOx heating will help reduce the illnesses and conditions related to air pollution. Then there’s the growing connection between greater comfort in buildings and the increased wellbeing and productivity of its occupants. It will come as no surprise that people in buildings with improved air quality are more likely to enjoy improved health and wellbeing. This in turn leads to higher cognitive ability and sleep quality and, ultimately, to improved performance and productivity. Creating a healthier environment in hospitals would benefit not just patients but staff. Improving the air quality in schools and universities would deliver a safer, more productive learning environment for students. Offices would be more comfortable places to work, leading to increased staff productivity and reduced employee sick days. Modern condensing boilers tick all legislative boxes, from high efficiencies to low carbon and ultra-low NOx. Add to this the relatively low initial outlay, rapid financial payback and the prospect of future lower bills, and this really is a win-win solution. www.remeha.co.uk T: 0118 978 3434 E: info@remeha.co.uk


Water Management

Are you ready for April 2017?

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ith water deregulation just around the corner… is your business ready? Commencing 1st April 2017, non-domestic users in England will for the first time be able to choose their own water supplier. This change will give businesses the opportunity to have their water usage and sewerage billed by a supplier of their choice. The deregulation of the water market will give businesses the ability to: • Consolidate billing from one supplier across multiple sites in different regions • Achieve lower prices due to more competition • Benefit from a wider choice of tariffs • Receive greater customer service • Have a dedicated account manager • AMR Metering, installation and profile data as part of the contract • Online access to water billing data

What’s next for businesses? Businesses with a multi-site portfolio, should be consolidating all their accounts onto one electronic billing invoice with copies of paper invoices. This will reduce the administration of processing multiple invoices. The electronic billing file can then be imported and validated via specialist software or your chosen TPI/broker, to ensure you are only paying for what you use. The validation process will be even more important when the switch from water tariffs to contracts begins in April 2017. Once in place, a fully cost coded accounts payable feeder file can then be supplied to streamline the payment process. STC Energy provides a bureau service to validate utility invoices and also provides access to all water cost and consumption data via our online web portal. Scanned copies of suppliers’ paper invoices are also available via a simple download. This enables our customers to view all their utilities data in one place without having to log into multiple suppliers’ websites.

Carry out a water audit Carrying out a water audit on sites with high water consumption will help to ensure that any issues are detected early on. Typical issues found include: • Wastewater abatements: Non-return of water to the sewer • Oversized water meters – higher standing charges • Leak detection • Incorrect Meter Size Charging By identifying any issues, potential savings and refunds can be obtained. Water audits will also ensure that future charging structures are both accurate and concise for the consumer. In addition, accurate current water costs and consumption will provide long term savings. This will later ensure that all accounts are in order prior to the opening up of the market in April 2017. The water audit process begins with an analysis of all the water invoices and charges that you currently receive from the water authority (water, waste water, surface water, fixed charges and Trade Effluent). At STC Energy, our water audit service goes above and beyond just invoice analysis, it will also follow up with a comprehensive site survey and report. From this you will be able to identify where there is potential for savings and refunds, as well as any priority areas for investigation.

Water AMR Meters & Monitoring Consumption By installing either an AMR meter or data logger onto your water supplies you would be able to monitor consumption in the same way as electricity or gas. Water meters are sometimes installed in inaccessible areas, making it difficult to arrange meter readings without proper health and safety training. Installing a data logger or AMR meter allows easy access to usage data that can be used by the supplier to avoid estimated billing. Our profile alerts service will also help to ensure that water is not wasted. By setting consumption targets, our software can produce exception alerts to inform you of usage outside the usual consumption.

STC’s web portal enables our clients to analyse their consumption. Any deviations found will trigger an email alert to a nominated site contact and/ or it can be viewed on an online map-based site exception dashboard. These alerts can also be directed to and monitored by our dedicated team who will then inform the client of this change. The report will automatically highlight which sites are over target, allowing for fast corrective action. Profile alerts are very successful in identifying energy wastage directly and in suggesting behavioural changes that can be implemented to reduce consumption. Profile alerts work for both small and large multi-sites.

Save money with behavioural/technical changes Many of our case studies for existing clients have revealed that by implementing both behavioural and technical changes, savings can be made. One of the most common causes of high water consumption and billing is taps running unnecessarily. It has been estimated that a running tap wastes over 6 litres of water per minute. Leaks may be difficult to spot without analysing profile data. Our profile alerts can identify if water is being used during periods of closure. The data will then inform you of any potential leaks on your site. It has been estimated that just one leaking tap could waste around 5.5k litres per year. www.stcenergy.com

Energy Manager Magazine • December 2016

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Procurement/Finance

Procura+ Awards 2016: Rewarding sustainable and innovative procurement

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wo London-based public authorities were recognised for exemplary procurement at the 2016 edition of the European Procura+ Awards, which were held in Malmö last month. Transport for London (TfL) won the ‘Innovation Procurement of the Year’ category for its recent project to reduce the whole life cost associated with lighting the expansive London Underground network. The City of London Corporation came second in the category of ‘Tender Procedure of the Year’ with a cleaning contract which included comprehensive social and environmental requirements. The City of London was narrowly beaten by the Dutch Ministry of Infrastructure and the Environment (Rijkswaterstaat), who worked to ensure that they achieved a carbon neutral c ontract for the widening of the A6 motorway by using a lifecycle costing approach which included a calculated “carbon discount” when awarding the contract. The City of Copenhagen (Denmark) beat off competition in the category “Sustainable procurement of the year” for its procurement of healthy, sustainable, biodiverse and appetising food. The city has a broader aim to ensure that 90 percent of all food procured by the municipality should be organic. All of the fruit and vegetables tendered for in this contract are certified organic. The Awards ceremony took place on 30 November in Malmö (Sweden), as part of the Sustainable City Development Picture Credit: Bill Watts

conference – an international event dedicated to looking for ways in which cities could play their part in the implementation of the UN’s Sustainable Development Goals. SDG 12 asks us to work towards responsible consumption and production: sustainable procurement is one very practical way of doing this, something each of the Procura+ Award winners have demonstrated.

Focus on London Read on for further details of how Transport for London and the City of London Corporation approached their procurements.

Innovation for sustainability : Transport for London With support from the EU funded Procurement of Lighting Innovation and Technology in Europe (PRO-LITE) project, TfL carried out extensive early market engagement with over 80 manufacturers and analysed the whole life cost of the lighting system to better understand where costs could be saved without impacting on quality. The procurement process was carried out in five main steps: Internal Demand Analysis to quantify as far as possible business needs; a State of the Art analysis to understand what products were already available on the market; an early market engagement to communicate TfL’s needs to potential suppliers and to test the market’s capability to meet these requirements;

a Requirements Development phase to develop the technical specifications and documents required for the product; and finally, the procurement itself. The process introduced a procurement approach which calculated a range of external costs as well as unit price, including installation, maintenance, energy use, carbon and cleaning costs. Indicative results suggest a 25% saving on whole life-cycle costs, and significant reductions in energy consumption. The luminaries and lamps purchased through the PRO-LITE project demonstrate a methodology that can be applied to any European transport network.

Socially and environmentally responsible cleaning: City of London Corporation When procuring its cleaning services, the City of London applied green public procurement (GPP) criteria to ensure high staff welfare and the use of environmentally friendly and animal cruelty free products. The resulting contract used a range of innovative equipment such as cordless vacuums, pulse mopping, and microfiber cloths, to help reduce the need for detergents and other cleaning products. The supplier also trialled the use of electric vehicles for its response teams, to help reduce transport-associated emissions. The procurement criteria specified chemical-free, biological (enzyme-based) and animal-cruelty-free products to ensure that any cleaning products used would have lower negative impacts on human health and the external environment. Social outcomes were an important aspect of this green cleaning contract: zero hours contracts were forbidden, flexible family-friendly schedules were requested; all staff were paid the living wage; and access to training opportunities was required. The value placed on staff welfare and training has had a very positive impact, evidenced by a very low turnover rate. Furthermore, the procurement has managed to reduce life cycle costs and negative environmental impacts by using ecolabelled, polymer-based floor polishes. For more information on all of the Procura+ Award winners and finalists,

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Energy Manager Magazine • December 2016


Procurement/Finance

How to CONVINCE YOUR CFO TO INVEST IN energy management software Introduction In today’s business climate, it’s a real battle to get energy saving projects funded by senior executives. Budgets are tight and resources for projects are limited. So if you want the attention of decision makers, you’d better have a good story with solid economics coupled to a solid strategy. In this article, we bundle know-how gathered from dozens of energy managers who have used Honeywell’s EnactoTM energy intelligence solution to show how an energy savings plan could benefit their business and convince their CFO to make the investment.

Business case In most cases, energy management software will be considered just like any other project. The CFO will always ask for the following information before making a decision: • How much will it cost to set up the system and keep it operational? • What savings will our company get from it? • What value does energy management software bring to the company?

The costs The first question can be answered relatively easily, based on the Enacto offer. Since Enacto is mostly offered as a turnkey solution, it will have a set-up component for hardware and software and a software-as-a-service and managed services component.

Dirk Den Haese – Global Director for Energy Management Solutions, Honeywell Home and Building Technologies The savings from an energy management software solution The hardest part is to quantify savings. Reduced energy consumption will be a key part of savings, but additional savings are driven by efficiencies, for example fewer people or resources required to control energy, and smarter purchasing decisions – lower energy prices -- due to better forecasting. To quantify potential energy savings for Enacto, you need to measure your energy management maturity level. Levels range from 1 (innocence) to 5 (best practice). The lower the maturity level of energy management in the organization, the higher potential savings can be. Honeywell has developed a two-hour workshop during which your maturity level will be defined and the financial value of investing in Enacto will be quantified. Although every company is different, our workshops reveal that the potential average savings for customers using Enacto range from 0.5% to 9%.

The Net Present Value Although they are related to each other, ‘value’ differs from ‘savings’. A CFO will translate ‘value’ and the positive cash

this project will generate for the company over a certain number of years. Once you quantified this array of yearly cash flows, you should discount to today’s reference. For example: if inflation is 2%, $100 this year will be worth only $98 dollar next year. So roughly spoken, $100 in savings in 2017 is worth about $98 today due to inflation. The discount factor is equal to the weighted average cost of capital (WACC): a number your financial team will know very well. This number tells you how much money an investment will cost the company per year and it is a mixture of cost for equity and loans. The number of years (called ‘horizon’) you need to take the cash flow into account, relates to how long you expect to benefit from the savings generated by the project. Typically, horizon relates to the technical lifetime of the purchased solution. Once you know the discounted cash flow after taxes for the number of years equal to the technical lifetime, we just add everything together. Make sure that in your initial year, you include the initial investment. The number you calculate, a net present value (NPV), is a key measure for the CFO. It tells him whether the project increases the financial value of the company. If the number is positive, it means the Enacto project will increase the value of your company, and thus should make the company more attractive to investors. Net present value is a key measure that can summarize your whole business case for the project.

The payback period Of course, there is also an easier version of the NPV, i.e. the ‘payback period’. The payback period tells the CFO how long it will take the company to recoup its investment from the generated savings. In general, our workshop calculations reveal that the use of Enacto results in an expected payback time of two to four years.

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Energy Manager Magazine • December 2016


Procurement/finance The financial and technical risk Any CFO will also want to understand how much risk is involved in using Enacto. Enacto is a typical ‘pay-as-you-grow’ solution. So, it is easy to pilot first a sample of the total project and check the energy saving results.

Other drivers for energy management software in your company CFOs will consider other factors as well: •

Legal obligations Regions and countries link tax payments, subsidies or refunds to demonstrated efforts and energy savings. Energy management solutions like Enacto fit perfectly in this framework as they track realized energy savings, generate benchmark figures and legal reports automatically, saving precious time of the energy manager so he can focus on savings instead on reporting.

Quality standards ISO reporting can be time consuming and cumbersome. With Enacto it’s easy to generate standard reports, like ISO 50001 demands. Corporate social responsibility Energy management solutions help boost corporate social responsibility (CSR) in companies and help simplify reporting. With Enacto, you can demonstrate the impact of your energy consumption on the climate and community you operate in. Hence, it gives insights in how an operator, technician or facility manager acts to support the CSR targets of its company.

Carbon & emission trading As carbon emissions are directly linked to energy consumption, Enacto can help you to influence, forecast and report on carbon and emission trading. It will warn whenever your company is about to cross the safety line of maximum emissions and it will help you to understand how many tons of carbon dioxide you can trade. Emex advert_KiWi Power V4 Print Ready.pdf 2 2016-10-20 05:34:33 PM

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The calculation shows a positive business case, now what? At this stage, you understand the project will create value for your company and that you qualified for additional benefits, like mentioned above. Now the story needs to be presented to the CFO. Assuming his time is very limited and you will only get 20 minutes, make sure your story is easy understandable and focus on the key message only. Ideally, prepare two slides. The first slide describes the executive summary of the project. It contains a short description and in large numbers the NPV. Your next slide will be a more in-depth description of the project itself. This CFO may also want the proposal to be evaluated by his teams. Be prepared to manage your story and continue to sell it internally.

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Procurement/Finance

Councils switching on to the savings of energy efficient technologies

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ouncils in the UK recognise the importance of the powerful long-term financial savings and environmental benefits that can be achieved by upgrading their energy infrastructure – savings that can greatly help to reduce fuel poverty and improve facilities in local communities. There is opportunity for public bodies to take a leadership role by influencing carbon savings as the public sector is recognised as a key element in delivering the UK’s Climate Change Programme. Although the sector emits a relatively small proportion of UK emissions, there are excellent financial savings and significant reductions in carbon emissions to be achieved by public bodies through the implementation of energy efficiency initiatives and technologies. These savings will provide a valuable contribution towards the UK’s wider climate change targets. There are a number of inspiring examples below where these savings have been achieved by the public sector by undertaking street lighting energy efficiency projects. While the benefits of these technologies are widely identified, there is also the opportunity for public organisations to invest in these technologies using Government funded finance, as upfront costs required for such projects can often be a barrier to getting projects started. One solution that a number of councils have begun to utilise is the interest-free government funding available from Salix Finance, specifically for public sector organisations that wish to pursue energy efficiency upgrades. The savings achieved from the installation of the energy efficient technologies outweighs the initial investment involved, enabling councils to devote their funds to other services.

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A good example of a local authority to have benefitted from taking out a loan with Salix Finance is Gloucestershire County Council who have championed energy efficiency initiatives by undertaking a three-year project to upgrade 55,000 of its street lights across its estate. Having already implemented dimming, the council were looking for an effective means of further reducing its carbon emissions from street lighting, which accounts for around 50% of the council’s total emissions. Upon researching the upgrade scheme and implementation options, investment in LED street lighting with a Central Management System across the estate was soon identified as a priority project. The council have so far received a £1.4m loan from Salix to install the technology across Gloucestershire County Council, which is reducing their carbon footprint and is estimated to deliver annual savings of over £282,000. The upgrades are expected to save the council more than £5.6 million over the lifetime of the technologies. Hayley Condie, Programme Manager at Salix Finance said: “Gloucestershire County Council have been working with us since 2009 and were the first council to undertake a street lighting project using interest-free funding from Salix Finance, as well as utilising both Salix’s recycling fund and loans for their projects. This is assisting them to deliver upgrades across their whole estate.” A second excellent example is Bournemouth Borough Council, who recently completed a transformational street lighting renovation, investing in £4.2m of Salix Funding to make the efficiency upgrades. This is expected to save the council approximately £17m over the course of the project’s lifetime. The money has been spent on upgrading over 16,000 sodium street lights to energy efficient LED luminaires, replacing the lamps, control gear, photocells and reflectors, as well as illuminating signs and bollards, in order to reduce energy consumption. The move is expected to save the council over £871,000 annually, reducing its street lighting energy bill by approximately 72%. The loan will be paid back over a period of four years using the savings from the project. Upgrading street lighting is a popular energy efficiency measure that many local councils are embracing. Opting for more energy efficient lanterns such as Light Emitting Diodes (LED)’s can significantly reduce energy consumption.

Energy Manager Magazine • December 2016

Councillor Michael Filer, Cabinet Portfolio Holder, Cleansing and Waste at Bournemouth Borough Council said: “Salix has provided vital funding and expertise that will lead to a significant saving in street lighting energy consumption which will equate to large environmental and financial savings.” In Cheshire East, the council is leading the way in combating energy issues with a carbon reduction target of 27% by 2016 a target already set to be exceeded by 6% thanks to the council’s collaboration with Salix. The council is working with Salix to implement various street lighting efficiency projects over a four-year period which began in 2015. Between June 2015 and March 2016, the council utilised a £3.3m Salix loan to replace over 8,700 lanterns on key traffic routes with low energy LED equivalents. These upgrades alone are estimated to produce energy savings of around £672,900 a year, predicted on energy savings over the next 25 years, with an estimated additional £167,900 thought to be saved on operating and maintenance costs. Running adjacently to this project, the council also self-funded the installation of 2,400 columns in residential areas in order to replace outdated units that were all over 40 years old and in real need of an update. Following the successful first year investment, the council opted to work with Salix again in 2016, applying to replace an additional 23,907 street lighting luminaries with LED units. This programme will be delivered across three phases over a three-year period. The existing lanterns which range between 50W to 100W are due to be replaced with LED lanterns consisting of 19W, 24W and 49W that can also be dimmed if desired. Since 2004, Salix has worked together with over 80 local authorities and awarded over £61 million to street lighting projects across England, Scotland and Wales. Salix can fund smaller town parish councils to the largest county councils within the UK. Should a Local Authority wish to do street lighting, Salix has more than 50 client case studies and over 300 project knowledge slides, with supporting technical information. Salix funding supports approximately 120 technologies; which for street lighting includes: luminaire replacements with LED, luminaire replacements incorporating electronic ballasts, replacement of control gear including centralised controls, and non-illuminated or solar bollards. www.salixfinance.co.uk


Procurement/finance

Evolving approaches to public sector energy buying By Mark Doyle, Senior Corporate Account Manager at Gazprom Energy

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he Department of Business, Energy and Industry Strategy’s (BEIS) pledge to invest £295million in improving the energy efficiency of public sector buildings by 2020, and its increase in innovation spending, demonstrate the government’s commitment to radically improving the efficiency of public sector energy consumption. This perhaps suggests a time of change ahead in the way public sector organisations buy energy too. There’s long been legislation regulating this area, with organisations naturally having to conform to OJEU (Official Journal of the European Union) compliant processes in their procurement. As a result public sector energy frameworks have also been a popular choice. But with the energy supply market in constant flux, we’re beginning to see public sector organisations review their options, taking a more active approach to reviewing the market. We’re seeing more examples of organisations surveying the different options available to them and becoming much more switched on when it comes to monitoring consumption. Low risk and competitive prices are still important to public sector organisations, but it’s not the only thing governing their energy choices.

Fixed vs. flexible contracts Let’s look at that traditional buying choice a little deeper. For very valid reasons public sector organisations may have opted for a fixed pricing model. Being billed for the same amount over the duration of the contract means having budget certainty,

and any risk-averse organisation that needs a high level of budget certainty can see the appeal of not having to worry about spikes in price until a contract’s end date. While fixed rate contracts are a popular and effective way to purchase energy, some organisations in the sector are exploring other options such as flexible purchasing contracts, due to the potential cost savings these can bring, particularly in periods of low energy prices as was the case recently. With an effective flexible purchasing strategy, energy buyers can take more control of their energy procurement, given that a contract of this type enables them to buy and sell set volumes of energy in response to market fluctuations. Immediately after a flexible energy purchasing contract has been agreed with a supplier, the buyer can begin to purchase the future energy their organisation will consume, even if the supply isn’t due to start for another 12 months or more. This method of purchasing allows the buyer to spread their energy decisions across months or years, which is why it is popular with organisations that consider energy as a strategic decision and therefore don’t want to commit to a price at one point in time in case the market changes significantly.

Framework divergence Another convention that some public sector organisations are beginning to move away from is the use of pre-agreed energy frameworks offered by public buying organisations, and instead proactively choosing their own supplier. While much of the public sector has long enjoyed the benefits of frameworks - including their buying power, their financial and security assurance, and their pre-agreed terms - some are now looking for other factors in their energy choice such as customer service. To many, selecting the right energy supplier is about finding a provider who can deliver ongoing maintenance and support. The added value that a supplier gives, such as advanced reporting and

access to experienced market analysts, can give the customer better control of their energy costs.

Monitoring energy consumption There’s also been a move towards using automated meter reading (AMR) technology in the public sector, which has reshaped its approach to energy management by enabling it to focus on energy consumption. This eradicates the need for estimated billing, as energy consumption is monitored using a device, meaning that organisations only have to pay for energy that they’ve used. It also makes it very easy to understand how much energy is being consumed across a complex property estate. For example, the London Borough of Merton has 166 sites making it difficult for energy managers to monitor energy usage across the whole of the local authority. Installing AMR devices on each of their meters enables the organisation to closely monitor collective energy consumption thanks to regular access to meter readings. Anomalies can be easily addressed too, with AMR identifying buildings currently not in use, such as schools during holiday breaks, that may be consuming more energy than they should be for example due to heating being left switched on.

Biting the bullet Cabinet Office minister Francis Maude once claimed that the public sector is too risk-averse in nature. But energy buying is one area where the sector seem to be becoming more open to choice. Taking the initiative with much of the energy procurement process, from finding a supplier to managing consumption in-house, is how some public sector organisations are now looking to reduce energy costs. But to be truly confident that they’re making the right decision, the public sector should still consider looking for advice from other sources, like references and accreditations, when selecting suppliers. Of course, there’s nothing wrong with continuing to take the same approach to energy buying and management, but it’s important that whatever route an organisation chooses to go down that they factor in more than just price and convenience, and find the right provider for their needs.

Energy Manager Magazine • December 2016

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Procurement/Finance

Carbon offsetting -

opportunities for local authorities to finance energy efficiency improvements

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arbon offsetting makes a significant contribution to reducing carbon emissions and meeting nationally determined targets. It also offers opportunities for local authorities to engage with their residents on issues such as climate change and provides a mechanism for financing a range of practical energy efficiency improvements and renewables that help improve the local area and residents’ wellbeing.

Jane Richardson Hawkes - Jane is a Senior Energy Specialist, at the National Energy Foundation. She specialises in sustainable energy policy and advises local authorities on sustainable energy technologies and policies in the context of land use planning and climate change strategy.

How does a carbon offset fund work? Although the detail of carbon offset schemes might vary from one local authority to another, the fundamentals are the same. Carbon offsetting applies to major new developments and the starting point is that new buildings should be built to high environmental standards.

The local authority specifies a target for carbon dioxide emissions that is above the requirement specified in Part L of the Building Regulations. Where the developer can’t achieve this on-site, carbon offsetting enables it to be met off-site. Where this is the case, Energy Statements are used to provide the anticipated level of carbon dioxide (over the target) that each ‘as-designed’ new building will emit during its first year of use. The developer then pays a set sum for each tonne over the target multiplied by the set number of years determined by the council. In the case of smaller new developments (where there’s no requirement to produce Energy Statements) the developer pays a flat fee per unit. The offset fund is then used to finance energy-saving schemes in the local authority area and the fund is managed according to clear principles agreed by the council.

Carbon offsetting future

Despite the UK Government having rolled back on its zero-carbon buildings policies, the Mayor of London has recently applied a zero-carbon standard to major new residential developments (i.e. 10 or more units) in the capital. These homes need to achieve at least an on-site 35% reduction in regulated carbon dioxide emissions beyond Part L of the Building Regulations. The remaining regulated carbon dioxide emissions to 100% are to be offset through a cash in-lieu contribution to the relevant borough, which is ring-fenced in order to ensure the delivery of carbon dioxide savings elsewhere. For commercial developments, the policy objective is a 35% reduction in regulated carbon dioxide emissions beyond the Building Regulations and, where this cannot be met on-site, a cash in-lieu contribution is levied by the appropriate planning authority. The Mayor’s Sustainable Design and Construction provides guidance on the collection and spending of the fund, with a preference for retrofitting publicly-owned property as this provides wider community

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Energy Manager Magazine • December 2016


Procurement/finance benefit. Schools, council offices, public facilities and social housing are highlighted as buildings that could be retrofit most readily. Another option is to establish a borough-wide revolving energy fund, where loans are provided to local residents or businesses wanting to retrofit energy and water-saving measures.

Carbon offsetting knowledge and experience At the National Energy Foundation, we have worked at the forefront of carbon offset development for over a decade, most notably assisting Milton Keynes Council establish the UK’s first carbon offset Local Plan policy (D4) in 2008. As the council’s carbon offset manager since then, we have kept a watching brief on national and local offsetting research and policy development, and have co-ordinated a range of locally-based carbon reduction projects. The Milton Keynes scheme is highlighted as a Best Practice example in the Mayor of London’s Sustainable Design and Construction Supplementary Planning Guidance document. So far, its trail-blazing approach has achieved carbon savings totalling more than 6,600 tonnes. It has also generated more than £1 million for targeted carbon-saving projects that have benefited local residents and helped address wider social, economic and health issues such as fuel poverty. We have also used our experience to help Southampton City Council develop its carbon offset policy, and our work included a review and analysis of other English local authority carbon offsetting work. In addition, we recently completed a research report commissioned by the Greater London Authority (GLA): Review of Carbon Offsetting Approaches in London, in which we undertook a London-wide assessment of the carbon offset approaches taken by the capital’s 35 local planning authorities, and an examination of their progress.

work for the GLA, we have developed a detailed and broad understanding of all the issues around the establishment and operation of carbon offset schemes, and can provide: • Advice and support in setting up a fund and sourcing funding. • Support in initiating ideas, programmes and schemes to reduce carbon emissions. • Managing and delivering a fund through local carbon-saving initiatives. • Managing a scheme’s finances and ensuring compliance with the fund’s terms and conditions. • Verification of any resulting carbon savings. • Reporting to the council/Carbon Offset Board on a regular basis.

As a result, we’re well-placed to offer our top tips for setting up and running a carbon offset scheme: 1.

2.

3.

Carbon price. Don’t be too ambitious on carbon price. A modest fund can pay for more measures than no fund. Project management. Don’t be afraid to pay for decent project management. It’s a very important skill but one that’s often undervalued, until things go wrong! This is another area where we’ve had a great deal of experience and can help. Benefits. Ensure that any benefits are widely spread. Make sure that they’re not just available to those who can

4.

5.

6.

7. 8. • • • •

• • • • •

afford to pay but also to those who are most in need or require help to access them. Funding. Take advantage of LEEF and/or Salix funding to piggy back on good projects. Additionality. This is also important. Don’t fund what would have happened anyway. Realistic. Don’t be too optimistic. Take into account real energy-saving lifetimes and real-world savings. Transparency. Be transparent. Keep all your stakeholders on board. Measures. Concentrate on proven carbon saving measures such as: Boiler cashback or scrappage schemes. LED light bulb swaps. Retrofitting local authority housing stocks. Energy efficiency improvements to publicly-owned buildings – for example: libraries, town halls, schools and community centres. Subsidised wall and loft insulation. Landlord subsidies for energy efficiency measures. Improvements to communal heating systems. Project work on decentralised energy systems. Small energy efficiency measures and advice on how to use energy better for the elderly and those in fuel poverty.

Further information about the work on the National Energy Foundation is available on its website: www.nef.org.uk

Broad knowledge and expertise enhances service provision Providing carbon offset services is enhanced by also having knowledge and expertise in related areas such as: building energy performance; energy modelling; carbon reporting, footprinting and verification; community renewables; and energy efficiency management. This is where the National Energy Foundation can help. As a result of our long-standing experience and our recent

Energy Manager Magazine • December 2016

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Energy Manager Magazine December 2016