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October/ November 2012 Issue 82

Efficient control of utilities and facilities

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Contents Group editor Tim McManan-Smith tim.mcmanan-smith@emap.com 020 7728 4635

Sub-editing and design Paul Lindsell Sales director Steve Swaine

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steve.swaine@emap.com 020 7728 4958

Divisional director Alison Jackson alison.jackson@emap.com

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Contents

water energy & environment Greater London House, Hampstead Road, London NW1 7EJ Registered at Stationers Hall ISSN 0964 8321 Printed by Headley Brothers Ltd

October/ November 2012 Issue 82

Cover Story – see page 14

Efficient control of utilities and facilities

Have you got money to burn? Didn’t think so.

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News & Comment Renewable energy set to rival fossil fuels, water efficiency awards, Is the Green Deal up to the job?

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Insight Ed Davey speaks about what’s in store with the forthcoming Energy Bill

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Gas & Electricity Electricity demand response yields big benefits, smart metering

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The Energy Event 2012 A review of the Energy Information Theatre and the exhibition

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Lighting Low cost sensors lead to large savings, Further success for LEDs

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ESTA aM&T has much more to offer

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HVAC The need to specify air curtains correctly, condensing benefits, a solar solution

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Combined Heat & Power If you have a need for heat then CHP could be the answer

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Compressed air Tips for efficient air, Dairy makes large savings

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Monitoring & Targeting Behavioural change and data

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Water Management Water efficiency gets water industry support

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Product News The latest equipment and services

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Q&A Nick Lewis, npower’s new connections sales team manager

BIU can help save you money through our industry leading energy services: • Procurement Optimisation • Revenue Recovery • Online Systems • Technical Energy Services • Bureau Service Get in touch to find out how BIU can help you. Call now on 01253 789816 or email sales@biu.com

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To register, go to www.theenergyevent.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

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Comment

Financing the energy revolution “If we reduce our demand to 80% of our current levels then we will have a 24% cushion for security”

The Energy Bill is at last being put before Parliament in November and there are a great many questions to be answered on electricity market reform. Ed Davey has said that it will receive its second reading prior to Christmas this year. There will be a lot of debate on whether the bill will effectively, and affordably, decarbonise the UK’s electricity supply while securing our supply. The elephant in the room is the complete absence of energy efficiency within the bill. This has the power to totally alter the power supply market. Ofgem warns of our spare capacity margin going down from 14% now to only 4% in three years’ time. If we reduce our demand to 80% of our current levels then we will have a 24% cushion for security. The serious implications of only having to generate 80% of our current power needs are huge both monetarily and environmentally. To address this missing aspect of energy policy the government will publish an energy-efficiency strategy this autumn. The problem with these strategies is that ever since the oil crisis in the 1970s, governments have extolled the virtues of energy reduction while not incentivising it or getting to grips with it in a large-scale way. Figures are bandied about between £6bn and £8bn of savings available to businesses in the UK through energy saving programmes. Yet continually aside from high-profile examples they are not realised, at least not in a systematic way. Having recently judged The Energy Awards it is clear that there is no shortage of innovative solutions to reducing energy use. Here and now large savings can be made. The classic answer is that particularly in a recession companies are unable to finance projects. Even though the logic of reducing running costs seems attractive, having payback periods that are more than a year stops many projects getting off the ground. Energy efficiency is not properly accounted for in finance systems. There is no meaningful carbon price to speak of. If there were then it would allow efficiency projects to be offset against this. To consider the true value of an asset, an energy efficiency project it is better to use Return on Capital Employed (ROCE) rather than simplistic payback. It is generally acknowledged to be the key ratio to consider when making an investment for a business. Capital is the cost of the investment and the return is the annual benefit (profit/ saving) from this investment. This can be used to justify using capital rather than banking it and also using external finance options. This is available wither from traditional sources or from energy service companies that are all too happy to arrange it as they can prove that the investment is protected by the savings yielded.

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Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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News & Comment

Minister who made ‘outstanding contribution’ to the DECC axed in government reshuffle Charles Hendry, arguably the most effective energy minister of the past decade, has been axed in the government’s latest reshuffle. He was the only one to have the support of the nuclear, renewable, fossil fuel lobbies and the industry as a whole. To lose his experience at a time when the Energy Bill is being steered through Parliament is either pure perversity or a calculated move to change direction. Hendry is replaced by Conservative John Hayes. Responding to the announcement, Renewable UK’s director of external affairs Jennifer Webber, said: “Charles Hendry made an outstanding contribution to the

Hendry: support of entire industry Department of Energy and Climate Change.” David Smith, chief executive of Energy Networks Association, said: “Charles has made an outstanding

Awards winners show their water efficiency With UK businesses potentially realising savings of more than £3.5bn a year if they implemented water efficiency measures, the winners at this year’s Environment Agency and Waterwise-organised UK Water Efficiency Awards demonstrated just some of the creative and practical ways in which organisations are cutting water consumption. The Environment Agency’s Chairman’s Award went to ‘Save Water Swindon’, a joint project between Thames Water, in partnership with WWF and Waterwise. It aimed at reducing water consumption in the town by one million litres a day by 2014. It is on course to achieve this ambitious goal – having already reduced overall use by more than 560,000 litres a day. Environment Agency chairman Lord Smith said: “The recent drought has brought the need for water efficiency into sharp focus. We want to see all businesses reducing their water

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usage and using this to deliver environmental and financial benefits. What can be achieved is highlighted by this year’s winners – all of whom should be praised for not only saving water but also putting themselves a step ahead of their competitors, saving money and preparing for the future.” Waterwise’s managing director Jacob Tompkins said: “We’ve been impressed by the calibre of all the entries this year; it’s been truly inspiring to see all the great work on water efficiency that’s being done.” The list of winners is available at www.waterwise.org.uk

“We want to see all businesses reducing their water usage to deliver environmental and financial benefits”

contribution to UK energy policy, not just in government but in opposition before that. His vast knowledge and experience has delivered a balanced and incredibly valuable approach. He leaves very big shoes to fill.” On his appointment Hayes said: “We face a major challenge to keep the lights on in the most costeffective way. In achieving this, we must not be over-reliant on any one technology but build a balanced low carbon mix and make the best use of Britain’s domestic energy resources and skilled workforce.  “I am keen to get on and work with businesses to secure the investment we need over the coming decade. And I look forward

to working with Parliamentary colleagues to put the coalition’s forthcoming Energy Bill into law.” A cost-effective low carbon mix sounds good but it is shaping up well for a new dash for gas, with nuclear power and renewable energy being fringe players compared with the original plans. Chancellor George Osbourne’s plans to turn the UK into a gas hub are given further support by the appointment of Owen Paterson as environment secretary who presides over shale gas regulations. A shift to the right with these two appointments is seen as a move towards Osbourne’s views, rather than Ed Davey’s.

UK renewable energy capacity to equal thermal by 2025

Growing government support, combined with significant untapped potential, could see the UK’s renewable energy installed capacity almost match that of the traditionally dominant thermal sector by 2025, states new research by alternative energy expert GlobalData. The company’s latest report, Solar PV in the UK, Market Outlook to 2025 – Capacity, Generation, Levelized Cost of Energy (LCOE), Investment Trends, Regulations and Company Profiles, predicts that the cumulative installed capacity of renewable energy plants will reach 79GW by 2025 – just two GW less than the predicted thermal

installed capacity for the same year. The renewable energy industry is the fastest growing segment in the UK’s power mix, and is set to grow impressively from the 11GW installed capacity recorded for last year. Wind is expected to be the country’s major contributing renewable power source in the future, surging from a modest 6GW in 2011 to hit 53GW by the quartercentury point. As a result of the UK’s new emphasis on renewable energy generation, GlobalData predicts the country’s carbon savings to skyrocket from just 608 tonnes in 2011 to 8,003 tonnes by 2025.

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Sponsored column

Heed Green Deal warnings or ‘waste economic opportunity’ Ministers risk losing business and consumer confidence for the second time in a year if they fail to heed warnings over the government’s “undercooked” Green Deal. David Hunt, a leading spokesman in the renewable energy sector, told the Energy Solutions renewable theatre in London last month that the policy had variously been described to him as a “dog’s dinner”, “car crash” and “farce” by senior figures in the industry. Mr Hunt, vice-chair of the Renewable Energy Association’s Onsite Renewables Sector Group, said: “The Green Deal was never intended as a driver for renewable technologies, that is the role of feedin-tariffs and the Renewable Heat Incentive. “But energy efficiency is critical for homes, businesses and UK plc to reduce its carbon footprint and energy use. The Green Deal

should be the ideal opportunity to support and address this issue, but we are facing a very undercooked policy becoming live and a Government that is not listening. “The big problem is that not only could this be a massive economic wasted opportunity; it would once again spook investors from engaging with other essential renewable and energy efficiency projects.” Mr Hunt, director of Liverpoolbased Eco Environments, referred to the court defeats suffered by the government over the reduction in feed-in-tariff levels available to homeowners and businesses keen to go ahead with solar PV installations. He said: “It is not so much the tariff levels that have had such negative impacts, more the uncertainty caused in investors, from infrastructure scale to commercial and even domesticsized projects.”

“We are facing an undercooked policy becoming live and a government not listening” Sustainable City Awards 2013 With up to a third of the UK’s current growth due to green business, sustainability is a hot topic in the City, and this years’ Sustainable City Awards promise to deliver some fascinating entries. Returning for a 12th year and partnering for the first time with the British Fashion Council, the UK’s foremost green business awards scheme will recognise and celebrate green innovation across 12 areas – including a new sustainable fashion category. The awards this year will be hosted in partnership with fashion

icon Livia Firth and her Green Carpet Challenge. Firth is encouraging business and community groups to show leadership in competing for one of the coveted City of London awards and will be presenting this year’s Sustainable City Awards at the Lord Mayor’s residence, Mansion House, on 19 March. Entries are welcomed from business, public and voluntary sector organisations. The closing date for entries is 1 December. For more information and details of how to enter visit www. cityoflondon.gov.uk/sca

Are you ready for the future?

By Wayne Mitchell, director of industrial and commercial markets at npower Finding time to think about the future isn’t on many busy people’s To Do lists, especially those working in the field of energy or resource management. Yet it is in these areas that change is happening so fast. Ten years ago, who would have thought the price of energy would become so volatile or that large companies would be legally required to report on their carbon footprint? Looking forward over the coming decade, we are likely to see some even bigger changes. For starters, there is general agreement that wholesale energy prices, regulation and associated costs are set to grow. The way in which businesses use energy will also change, as flexible working increases dramatically. This means that many companies will move away from old-style fixed offices to make use of ‘free agent’ workers, who operate independently. According to futurist Dr James Bellini, the free agent workforce is expected to reach eight million by 2020, with huge implications for office size and location, commuting patterns and associated energy use. Along with fewer commuters on the road, vehicle types are also expected to change. A report by Deloitte predicts that electric vehicles (EVs) will make

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

up one in 10 car sales by 2020. Already the EV market is gearing up, with models either launched or coming soon from the likes of Mercedes, BMW, Ford, VW, Nissan and more. Of course, the biggest EV money-saving opportunities lie in the business servicing and fleet markets. After all, with zero tailpipe emissions and annual electricity costs of about £150 per 12,000 miles (compared with £1,500 for a petrol equivalent), it is not hard to see the appeal. The growth of the Smart Grid will also bring money-saving opportunities for businesses. The need to balance Grid demand, especially with more intermittent renewable power coming online, will mean that businesses able to ‘load manage’ – ie . reschedule energy-intensive production or even switch to on-site generation at times of high national demand – could receive payments. National Grid predicts a 96% increase in the revenues paid per megawatthour over the next decade, from £280 in 2010 to as much as £686 by 2020. (See npower.com/ SmartSTOR for more on this.) And when you are talking about making rather than paying money for energy, it certainly provides a good reason to add looking at the future to your To Do list today.

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Insight

The Energy Bill The question of how to decarbonise the economy and tackle climate change while ensuring the UK remains competitive and energy affordable is what the Energy Bill and electricity market reform has been designed to tackle. At a CBI breakfast briefing Ed Davey gave an outline of what to expect from the Energy Bill when it is put before Parliament in November. Here is an outline of some of the key points

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“This opportunity for growth and jobs comes now, when we need it, not a decade down the line”

emand for electricity is set to double, as economic growth returns and then as we use more electric cars and heating. But a fifth of our power plants are closing because they are too old or too polluting. So with supply reducing and demand increasing over the next decade and beyond, we need massive investment: investment at double the current rate, a total of about £110bn between now and 2020. That’s a huge investment in new, low-carbon electricity generation and grid infrastructure – representing about half the UK’s infrastructure investment, the equivalent of seven Crossrails. This opportunity for growth and jobs comes now, when we need it, not a decade down the line. The CBI’s report said that the UK’s green business grew in real terms by 2.3% in 2010-11, beating even the global green business growth rate to take a share of over £120bn in the global market of £3.3 trillion. The government is looking to support this through sector-specific strategies, which will ensure there is sufficient supply chain capacity to support growth sectors including nuclear, renewables, oil and gas. And today I can also confirm we will be publishing the Energy Bill, as we always planned, next month, for second reading before Christmas. Contracts for difference For the ultimate goal, let me reassure you, has nothing to do with government intervention. Quite the contrary. Eventually I want to see low-carbon power sources competing on cost alone. But we can’t just flick a switch and make that happen instantly. So our energy

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reforms will come in four phases. Let’s start by admitting that the current arrangements – phase zero, you might say – are actually quite dirigiste. We have the Renewables Obligation; we negotiate bilaterally on potential new nuclear power stations; we have the competition led by my departtment for commercial-scale carbon capture and storage. There’s a good case for that statist approach now, but our reforms are explicitly intended to move to a market-based, pricediscovery model. So in phase one, we’ll introduce a mechanism that will offer reliable contracts, delivered in a way that is trusted by investors. That mechanism is the Feed-in Tariff with Contracts for Difference. Prices will be set administratively, aiming to bring all technology groups down in cost and begin levelling the playing field. Here’s how it works. We set a fair price for low-carbon electricity. The generator sells its electricity in the market, and is paid a variable premium to top up if necessary. And if the market price is higher than the strike price, the generator pays back the difference. The key thing here is certainty. Contracts for Difference can help smooth out market volatility, not only minimising costs to the consumer, but also making investment and financing decisions easier. And because energy still needs to be sold in the market, there are still powerful incentives to encourage operational efficiency. Global fund managers have told me that the uncertainty of the current arrangements has put them off investing. And they prefer the long-term contracts we are proposing – because they would

give them the predictable revenue streams they need to invest in big projects, and with lower costs of capital. In a contract. Of course, we don’t want a hiatus in investment pending our reforms taking full effect in 2014. So I’ve undertaken to explore what form of comfort might be given to keep investments on track for project developers looking to make progress over the next 15 months or so. We are talking to EDF about what this can do to help bring forward new nuclear at Hinkley, but let me stress that this offer is intended to benefit all low-carbon technologies. My department has been approached by some half dozen renewables developers, in wind and biomass, to understand how the availability of early comfort could help them. In phase two, as different technologies mature and become more widely deployed, we’ll see the first technology-specific auctions where prices will be set competitively by the market and (for example) onshore wind generators will start to compete with other onshore wind generators, as early as 2017. Then in phase three, when most current technologies have matured, we’ll move to technology-neutral auctions. So in the 2020s, low-carbon technologies should start to compete with each other in a true low-carbon electricity market.  Finally, when all technologies are mature enough, and if the carbon price is high enough and sustainable enough, all generators could compete without any intervention. The move from price setting to price discovery will be complete, with low-carbon electricity sources competing on cost to provide clean,

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Insight affordable, secure energy for UK consumers.  And through this four-staged reform, we will ensure that demandside response, and additional storage and interconnection, can all play an increasingly important role in Britain’s reformed electricity markets, helping to manage supply. Security of supply As well as stimulating low-carbon investment, I am determined to ensure the long-term security of our electricity supplies. Our market has, to date, delivered us a high level of electricity security. But the picture is changing, and we cannot be complacent. Over the coming decade, a large proportion of our existing capacity is set to close, and more low-carbon plant will enter the system. That means that other types of capacity will run less often, and can be less sure of revenues. That increased uncertainty could threaten the investment in non-intermittent capacity that we need, and run the risk of shortfalls – for example, during cold, windless periods. So we need to be ready to act to secure our electricity supplies for the long-term. This was underlined by Ofgem’s recent assessment of future capacity margins, which clearly set out the potential for capacity margins to decline from their current high levels. Many of the actions that we are taking – securing investment in lowcarbon generation, reducing demand through the Green Deal, enabling consumers to manage their energy use actively through smart meters – will help to reduce the risks. But these actions may not be sufficient to ensure security of supply in the long-term. That’s why we are intending to legislate for a Capacity Market – which will ensure that we have the right long-term incentives to provide us with the reliable capacity that we need. The Capacity Market would work by guaranteeing a steady payment for providing reliable capacity, giving developers of new power stations the certainty they need to invest. And it would work for households and businesses by securing their electricity supplies and

insulating them against the steep price spikes that can occur in very tight markets. Many investors in gas plant have made clear to me that they see the capacity market as important. Gas is crucial to the UK’s security of supply, and will continue to play a major role in our electricity mix over the coming decades, alongside use of carbon capture and storage technology and of course with significantly increasing renewables and nuclear. But the Capacity Market is not just about traditional generation – we are designing it so that other approaches such as demand side response and storage capacity can also participate. Demand-side reforms A key issue raised in Parliament, during scrutiny of the draft Energy Bill, was that the government should be driving permanent reductions in electricity demand. I agree that this is a crucial issue and we will be shortly setting out our ideas alongside our energy efficiency strategy. That’s in addition to the measures we’re already taking on energy efficiency, including of course our flagship Green Deal programme, which will enable homes and businesses to pay for energy efficiency improvements through savings on their fuel bills.  It’s a programme that will to run not for years but for decades, and should establish a vibrant new market in energy efficiency, one that could attract over £10bn of new energy efficiency investment in the residential and business sectors over the next decade.

I hope that it’s clear from what I’ve set out today that our plans will indeed: ■ one, remain market-oriented – indeed, in the longer term, we are blazing a trail to pure competition; ■ two, remain technology-neutral – a diverse generation mix remains at the heart of our strategy; ■ three, safeguard existing investments – indeed, we are committed to the principle of no retrospective changes and I’m acting to help existing investments out of the pipeline and into delivery; ■ four, be politically durable – the very heart of Contracts for Difference is that they are long-term, stable contracts that provide certainty to industry; ■ five, minimise the cost on energy users; ■ and six, enable sufficient investment in low-carbon power generation and supporting technologies: that’s the driving force behind the reforms. Our reforms will stabilise consumer prices. With the increased diversity in the energy mix they herald and the long-term contracts for suppliers, we will shift decisively away from the current situation where volatile global gas prices determine the market electricity price. So our reforms are good news for consumers, including for business consumers. They are long overdue.

CBI’S six tests, and consumer benefits Reform is always controversial. You may have heard or read criticism of various types: that our reforms are too complex, possibly deliberately so to conceal some secret subsidy for new nuclear; that we’re abandoning our climate goals in favour of a new dash for gas; or that we’re replacing a market-based approach with an illiberal, statist one. Those critics are all a long way wide of the mark. I prefer the six tests – six entirely sensible tests in my view – which the CBI has said it will use to evaluate electricity market reform.

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

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Gas & Electricity

Lies, damned lies and energy Leadership is needed now more than ever in energy policy, says Barry Gardiner MP, Brent North and special envoy for climate change and the environment at this year’s Energy Insight conference. Tim McManan-Smith reports

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“Reducing our demand for energy is likely to deliver much more cost-effective solutions than building ever greater levels of more generating capacity”

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here needs to be a 40% reduction in CO2 emissions by 2030 to avoid a 2°C global temperature rise, stated Gardiner. “At best our current pledges would achieve 16%, at worst 6% below 1990 levels,” he said, adding that we have to decarbonise faster and more effectively, which is why electricity market reform is crucial to provide the framework whereby investors will feel that confident to commit. The draft Energy Bill has outlined the main reform proposals and the Energy & Climate Change Select Committee has said that it is not up to the job. According to the E&CC, “the contracts for difference feed-intariffs has high complexity and is a fudge that is unworkable”, Gardiner stated. He added: “Who is counter party? DECC said the government would be but then the Treasury said not. Then the government said National Grid and they said not. It has now been suggested that it will be multi-party (synthetic counter party) liabilities paid by all energy suppliers. Nobody is sure if it is legally enforceable. It may not be credit worthy. It would have a negative impact on their balance sheets, which is not good if we want the utilities to invest. It is going to raise costs if the government is not the guarantor.” Gardiner went on to say that investment will not happen and the lights will go out if we do not sort out problems such as this. “Reducing our demand for energy is likely to deliver much more costeffective solutions than building ever greater levels of more generating capacity. Of course, we need to build new generation capacity but let’s first attempt to do two things. First, we must reduce our energy needs, and second, increase our energy productivity. This means regulating

Gardiner: ‘We must reduce our energy needs and increase energy productivity’ in product standards, in building standards that don’t compromise on heat or energy loss. It’s easy for politicians to announce targets but to meet those targets someone has to retrofit insulation, and energy saving technology, to 26 million homes in the UK. Now if we manage to do that for one home every minute, that would still leave 4.5 million homes not adapted by 1 January 2050.” Gardiner believes energy productivity would have to increase approximately 15-fold if we are to maintain our emission reduction targets and our quality of life. “To give some sort of scale here, that is to achieve the same productivity gain as 200 years of the industrial revolution in just 40 years,” Gardiner said, referring to that fact that we need to improve innovation in manufacturing processes, to engineer out waste, to develop new materials and processes. He also suggest that housing and transport are two sectors where the government is not being bold enough. “Of course, all of this needs leadership and leadership is about telling people the truth about their problems that they’re in and inspiring them to work to get out of those problems. I was speaking to the investment community, major

hedge funds and investors in the energy sector about a month ago. One of them said that the problem is that the government’s energy policy is based on a lie. I think he was actually too generous; it is not based on a lie, it’s based on at least three and here’s what they are: “The one that he was referring to is the government wants people to believe that their electricity will become cheaper; it will not, it will become much more expensive. The government also wants people to believe that new nuclear can be built without government subsidy, it cannot. If you look at the associated risks, if you look at the cost of capital, construction risks and development risks, it cannot be built without upfront subsidy. At the moment the government is trying to introduce covert subsidy through the electricity market reform but it is not going to achieve what it wants without overt subsidy. And finally, the government wants to persuade people that it is neutral between technologies. It is not and if you look at the proposals in the EMR and the way in which they slew the process against renewable energy and in favour of nuclear, then you will see that.” Gardiner said that no one has been able to tell what the market failure is to justify the enormous subsidies that flow to the fossil fuel industries. He said: “In fact the real market failure is that we don’t precisely don’t capture the full cost of pollution including things such as asthma and so on that cost millions to our economies and out environment. We need much greater transparency about subsidies going to fossil fuels, indeed all energy sources and the lack of accounting for the true cost of their polluting effects. After all climate change as some would the say the biggest market failure that the world has yet seen.”

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Gas & Electricity

A rapid response Flexitricity’s fast-acting aggregated reserve service has successfully responded to frequency deviations for National Grid

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“Sites need to be able to reduce load or increase generation rapidly in response to a locally detected frequency dip”

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mart grid company Flexitricity has announced the first fully automated response to a frequency event via its Frontline service, a sub-one second demand response service for National Grid that allows companies to unlock revenue from their existing electricity generating and consuming equipment. The company’s successful implementation of the service was conducted in partnership with the manufacturing plant of a global semiconductor company, whose on-site diesel rotary uninterruptible power supplies unit (DRUPS) is connected to Flexitricity Frontline and configured to respond within one second to deviations in mains electricity frequency. Balancing demand System frequency is controlled in real time by National Grid by balancing electricity demand with generation. If there is a shortfall in generation, such as when a large power station fails, frequency can fall. A frequency drop must be corrected very rapidly, meaning that sites must reduce load or increase generation within seconds. Conventional responses to frequency deviation involve using power stations operating at part

load or through other energyconsuming processes, but these responses are generally inefficient and increase national CO2 emissions. Flexitricity Frontline is an automated smart grid system that aggregates frequency responsive capacity for National Grid, reducing loads and starting generation in less than one second. Flexitricity chief executive officer Ron Ramage says: “We are pleased to say that, after rigorous testing, the first implementation of Flexitricity Frontline functioned perfectly. “The frequency dip was recorded at 15:03 on 30 September and Flexitricity Frontline responded instantly, running our partner’s DRUPS units for a fixed 30 minutes and providing the extra generation needed to help balance the deviation.” Untapped revenue Many businesses are sitting on untapped sources of revenue in their on-site generation and electricity-consuming equipment. Flexitricity unlocks this revenue for UK businesses, helping to increase asset reliability while reducing CO2 emissions at a national level. As frequency deviation events are relatively rare, Flexitricity is

remunerated by National Grid entirely on the availability of Flexitricity Frontline megawatt capacity. Live metering signals to Flexitricity from participating sites validate the amount of response available to National Grid. For each site, where availability has been accepted by National Grid in a settlement period, an availability fee is paid to Flexitricity and shared with participating sites. “We are now actively recruiting other partner sites with DRUPS units in addition to sites that can load drop quickly,” says Ramage. “Sites need to be able to reduce load or increase generation rapidly in response to a locally detected frequency dip. Normally, this means in less than one second, although sites that can respond in less than 10 seconds will be considered.” Flexitricity Frontline is procured under a new contracting mechanism with National Grid and complements the existing portfolio of demand response and network balancing services offered by Flexitricity. The company also contracts to National Grid’s Short Term Operating Reserve (STOR) procurement mechanism. www.flexitricity.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Cover Story

What does the future hold f UK manufacturers are operating in increasingly challenging times, not least because of the unpredictability of energy prices. British Independent Utilities’ energy trader Andrew Anderson-Shepherd sheds some light on the state of play

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ith stringent UK Government policy now being imposed, and increased pressures to reduce carbon output, there is greater pressure for manufacturers to reduce

energy consumption. Added to this, European laws have not yet followed suit, which makes for an uneven playing field for manufacturers trading in the global market. What does the future hold? Predicting where electricity and gas prices may be in the future is practically impossible due to the ever changing impact of external influences such a climate, economics and politics. We refer to these factors as fundamentals in the industry and they affect prices on a daily basis, long and short-term. One could say that with diminishing resources and no clear direction in terms of new generational capacity prices could be expected to increase. However, if the world economy does not pick up, then the demand won’t

be there and prices could well fall. There is also the issue of new sources of supply such as gas from ‘fracking’, which could be as much of a game changer in the UK as it has become in the US. How to weather the market volatility storm If UK process manufacturers have a relatively simple model that combines an on-going programme of energy efficiency measures, and a robust risk-managed energy procurement strategy, then they should be able to protect themselves from market volatility while ensuring cost mitigation. However, if they take a ‘suck it and see’ approach, then sooner or later they will come unstuck. With an appreciation of the factors affecting energy prices and some sort of procurement plan in place these changes can be managed successfully. The key to managing volatility in the energy markets is to ensure that you have a strategy in place rather than some vague notion that you will ‘do something’ if prices start to move. The energy market is complex and requires many years of analysis to understand it fully but, if nothing else, start reading the market reports you receive or employ someone who understands the market and is able to put it into a format that you (and the board) understand. The key is to have a risk-managed strategy in place – signed up to by all parties – which has a cap, triggers and a floor in place to protect Andrew Anderson-Shepherd: predicting future prices is impossible

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Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Cover Story

d for UK manufacturers? “The key to managing volatility in the energy markets is to ensure you have a strategy in place rather than some vague notion that you will ‘do something’ if prices start to move”

the business from upside market movements, while allowing for benefits to be gained from downside movements. Flexible contracts allow you to access the wholesale markets a number of years into the future and allow purchases to be made at the most opportune time. But, it must be stressed that these markets only tend to trade up to three years ahead so beyond that it is more difficult to mitigate against possible future trends.

In general, the pitfalls come from not understanding your business in terms of its energy profile into the future and thereby not being able to take advantage of opportunities when prices start to fall or take action when prices start to rise. Don’t forget that energy prices are traded commodities and as such are highly susceptible to volatility. If you can’t manage this volatility then you potentially lose control over one of your largest budget items.

Best advice for manufacturers Unless you have access to all the tools it makes sense to employ a consultant. A good consultant will work with you to develop a consensual strategic energy procurement plan and look to take advantage of prices – trading both the day ahead, prompt and forward curve to arrive at a “blend” of trades to give the business a good overall average price based on a risk-managed approach to energy procurement. This will help with forecasting and budgeting.

Energy in manufacturing – free seminar Do you work in manufacturing and want to know more about how to reduce your energy overheads? The first in a series of sector-specific seminars, this breakfast briefing will focus specifically on energy in manufacturing. This free seminar will take place on Wednesday, 21 November, at Radisson Blu Edwardian, Manchester (Free Trade Hall). The seminar starts at 8.30am and closes at noon. Spaces are limited. Register now to avoid disappointment and to receive

free city centre parking and an event pack. As well as insight into specific energy issues in the manufacturing sector, a panel of energy experts will line up to take questions from the floor. BIU energy trader Andrew Anderson-Shepherd will be on hand to tackle the issues affecting delegates. Martin McCubbin, head of purchasing for Pets at Home, completes the panel. Contact: call 01253 789816, email events@biu. com, or register online at www.biu.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

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Gas & Electricity

Generating new revenues Health trust implements low carbon technology and avoids rising energy costs

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“In effect, what we are doing is building a virtual power station, which operates using ‘negawatts’ – or negative watts”

iWi Power is helping public sector organisations, such as the acute NHS-run Lister Hospital, reduce energy costs and avoid peak demand tariffs. The low carbon energy-efficient measures, known as demand side response (DSR), are expected to generate more than £100,000 a year in new revenue for the hospital. Managed by the East and North Hertfordshire NHS Trust, Lister Hospital recently upgraded its high voltage electricity network. During KiWi Power’s turnkey project, four new diesel generators were installed to provide backup power along with a duplicate power feed from UK Power Networks. These upgrades will ensure that critical systems are kept operational in the event of a mains failure. Top priority Yoav Zingher, CEO and co-founder of Kiwi Power, says: “Energy savings should be a top priority for UK organisations but many rarely find the time to address facility usage and reduce energy bills. The government is currently discussing demand side response measures as part of its electricity market reform proposals. “Looking at the UK’s capacity

Four new diesel generators were installed at Lister Hospital

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KiWi Power’s smart grid operations centre margins, demand response should be a part of any robust and sustainable long-term solution for the UK energy industry.” KiWi Power has also installed smart controls that will allow the hospital’s new gas combined heat and power plant to run in parallel with standby power equipment. This will enable the hospital to make additional savings on its utility bills by reducing energy consumption during times of peak demand. Risk free Low carbon technology will allow the hospital to generate surplus power that can be exported back to the grid, providing it with a new risk-free revenue stream. The hospital will receive payments for participation through demand response aggregator KiWi Power via the National Grid. Control systems were integrated with the hospital’s existing supervisory control and data acquisition (SCADA) equipment so that KiWi Power can control the standby power equipment remotely from its smart grid operations centre in London. Smart meters provide facility managers at Lister Hospital with real-time data, offering a much-

improved insight into periods of high-energy usage, which enables them to manage peak demand more effectively. Dean Goodrum, East and North Hertfordshire NHS Trust’s head of estates and facilities, says: “I have been very impressed with KiWi Power’s technical ability and attention to detail. All in all this has been a prime example of partnership working.” No upfront costs Zingher continues: “No upfront costs were incurred by Lister Hospital as the National Grid absorbs these. In effect, what we are doing is building a virtual power station, which operates using ‘negawatts’ – or negative watts. “By helping National Grid balance electricity loads at short notice we reduce the UK’s reliance on dirty coal-fired power stations to provide electricity during peak demand. That’s good for business and good for the environment.” KiWi Power was responsible for the management of control installation, grid synchronisation, load performance testing and commissioning during the threemonth project. www.kiwipowered.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Gas & Electricity

Smart money on meters The roll-out of smart meters to UK businesses could help slash energy bills

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“Smart meters will put businesses in control of their energy costs and help them identify steps they can take to reduce their energy bills”

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he economy will be £3.5bn better off thanks to the roll-out of smart meters to UK businesses, which can each expect to save at least £230 on their annual energy bills, according to a report published by British Gas and forecasting consultancy Oxford Economics. The report, which analyses the costs and benefits of smart meters from 2012 to 2030, finds that while the national rollout in every home and business in the country will cost £11.5bn, the benefits of rolling smart meters out to homes could bring £22bn and the rollout to businesses could bring £3.5bn to the UK. This represents a total gain of nearly £14bn. The findings are based on the use of the latest available data and the inclusion of additional benefits not previously considered. The report identifies the following benefits for Britain’s SMEs: n The typical SME will save a minimum of 4.7% on their electricity bills and 4.3% on their gas bills – the equivalent of a £230 annual saving – as they become more energy conscious by engaging with realtime smart meter data. n Savings will rise to at least 7.5% for those businesses receiving additional energy saving advice from their supplier informed by smart meter data, equating to £390 per year, according to a report by the Carbon Trust. This advice could include changing lighting or upgrading old energy-intensive appliances such as fridges, air conditioners and ovens. Identifiable savings could even increase to 15% (almost £800). n £31 million in time saved due to the end of estimated bills. Smart meters will automatically send meter readings to suppliers, saving businesses the hassle of having their meter read or submitting meter readings, allowing them to invest this time elsewhere. Many British Gas business customers are already seeing

Robert Purcell has cut his bakery’s enery bills by 12 per cent, saving £900 the benefits of smart metering, following the launch of Business Energy Insight earlier this year. Business Energy Insight is an industry-leading service combining smart metering, an online energy dashboard and bespoke energy efficiency advice. Customers using the service have already saved up to 20 per cent on their energy bills. Robert Purcell, owner of Barnstaple Bakery, has been using Business Energy Insight since February 2012. He says: “Since having our smart meter installed, we have completely changed our approach to managing our energy use. As a bakery we use a lot of energy especially powering our ovens. But by looking at our actual energy consumption on a daily basis we’ve identified energy saving measures such as changing our lighting, replacing some of our old energy-intensive appliances and being far more vigilant in turning our ovens off when we’re not using them. In less than a year we’ve managed to cut our bills by 12 per

cent and save £900.” The Government requires all homes and businesses to have a smart meter installed by 2019. Angela Needle, head of energy consultancy at British Gas Business, says: “Smart meters put businesses in control of their energy costs and help them identify steps they can take to reduce their energy bills at a time when controlling costs is a priority for many small businesses. “Through Business Energy Insight many of our business customers are using data from their smart meters to help them make significant savings to their energy costs that can be invested in growing their business.” Oxford Economics senior economist Andrew Tessler says: “This report shows there is a clear financial benefit in rolling out smart meters. Together with the creation of the Data Communications Centre (DCC), smart meters can also greatly reduce the time taken to switch suppliers and make switching more convenient for customers.”

How businesses could make savings 1. The average British SME could save £230 based on a 4.7 per cent reduction in electricity costs and a 4.3 per cent reduction in gas costs based on the average cost of gas and electricity (as calculated in DECC’s quarterly report on energy prices June 2012, which excludes VAT). 2. The average British SME could even see savings of up to £390 (£387) based on a 7.5 per cent reduction in electricity costs and gas costs based on the average cost of gas and electricity as calculated in DECC’s quarterly energy prices report June 2012 (based on research by the Carbon Trust).

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Gas & Electricity

Demand response Industrial and commercial electricity customers in London are being paid to reduce their electricity use at times of peak demand or system constraint

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“We see the LCL trial as an important step towards shaping the future of demand management and low carbon networks”

K Power Networks is trialling contracts which encourage industrial and commercial customers to help reduce electricity demand on its networks at peak times. The research – part of Low Carbon London, funded by Ofgem’s Low Carbon Networks Fund – aims to investigate and demonstrate reductions to the carbon footprint and cost of distributing electricity in London. A number of business customers, including ExCel (signed up via Flexitricity), a major London department store (via EDF Energy) and a London visitor attraction (via EnerNOC) have signed contracts with aggregator partners. They have agreed to reduce their electricity use at times of peak demand by a defined number of megawatts of electricity in return for payments via the aggregator. Customers can also be called upon to reduce demand where UK Power Networks is managing a constraint on the network, such as a fault on a piece of equipment. Customers curtail their electricity demand from the network by either switching to back-up generation or increasing electricity output from installed combined cooling and heating power equipment, or simply by reducing their electricity usage. Balancing the system The contracts with the aggregators, to provide a service known as ‘demand response’, is an established way of helping to balance the national transmission system managed by National Grid. Now UK Power Networks is exploring its potential to balance electricity supply and demand locally on the electricity distribution network. ExCel building services manager Chris Barnes says: “While it would be difficult to reduce the demand on the electrical network by reducing

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lighting and plant demand due to the nature of the exhibition industry, we do have the capability to employ generators to supplement that demand. We, in partnership with Flexitricity, have been operating on similar demand reduction strategies [STOR and TRIAD management] for a number of years so it was natural for us to enter into this agreement for Low Carbon London. This has been achieved with no impact on core business.” The contracts have the potential to reduce peak demand on the electricity system while also reducing the need to keep oil and coal-fired power stations on standby, or run less efficient generation. The contracts also pave the way for more use of electricity generated from low carbon sources such as wind or local CHP plants. Low Carbon London programme director Liam O’Sullivan says: “Energy-aware businesses can gain financial rewards from reducing their electricity demand where this helps UK Power Networks to operate our electricity system more efficiently. Crucially, this will never compromise security of supply, as each business will retain full control over how they defer or reduce their electricity consumption for short periods in response to requests from our system.” Justine Brown, Low Carbon London programme manager at

EDF Energy, says: “We see the LCL trial as an important step towards shaping the future of demand management and low carbon networks. It’s a fantastic opportunity for our customers to earn additional revenues while gaining greater ability to manage their energy demand.” innovative approach EnerNOC UK director Kelly Lorincz says: “Low Carbon London represents an innovative approach to meeting the City’s energy demands. For customers, it is a win-win situation: they are proud to help London work towards a clean energy future while at the same time driving value for their businesses.” Systems are installed within the customers’ premises to enable demand response to happen by remotely starting generators or curtailing demand. This is preferable but the customer can choose to remain in control of their generating equipment. The customers can opt out at any time, ensuring that any participation does not have an adverse effect on their core operations. The research will test whether customers can reduce their demand following a fault at a substation or on a cable as part of the management of the incident, to maintain security of supply. http://lowcarbonlondon. ukpowernetworks.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Gas & Electricity

Savings galore A new 16-mile gas pipeline in Speyside will potentially cut energy costs by 30% following the award of a landmark contract by leading Scottish distilleries

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peyside distillers Chivas Brothers, Diageo and Angus Dundee have each contributed to a multimillionpound contract with leading gas connection infrastructure company Fulcrum, which will oversee the creation of a new pipeline linking remote Speyside distilleries at The Glenlivet, Tormore, Cragganmore and Tomintoul with Scotland’s main gas network. The underground pipeline, set to be completed by the summer of 2014, will end the distilleries’ reliance on expensive heavy fuel oil and tanker deliveries, which can be compromised by severe winter weather conditions. Improved infrastructure Fulcrum’s sales and marketing director Richard Atkinson says: “At a time when Scotch whisky exports are growing substantially, the pipeline will dramatically improve the distilleries’ energy infrastructure, providing scope for them to scaleup production and guarantee product continuity and will provide a significant reduction to carbon footprints at each distillery. “This will be one of the most

ambitious gas infrastructure projects in the UK for a number of years. Oil prices have been volatile for some time and it is increasingly economical for companies outside the main gas network to make this kind of investment.” In a joint comment the three distillery companies said: “These distilleries were founded before the advent of gas as an energy source and their distant locations were often chosen for a bounteous supply of fresh spring water above all else. It is a very positive move to bring them online with the main gas network, which will bring environmental and economic benefits to all distillers concerned.”

It is anticipated that Chivas Brothers, Diageo and Angus Dundee will recoup their initial investment within a few years based on current energy prices. The new pipeline will also offer social and environmental benefits to the areas around the distilleries – reducing dependence on heavy fuel tankers, opening up access to cleaner energy supply and removing the risks associated with storing large quantities of oil. Fulcrum is in discussions with several other Scotch whisky distillers interested in funding new gas connection pipelines, either as part of a consortium or individually. www.fulcrum.co.uk

“This will be one of the most ambitious gas infrastructure projects in the UK for a number of years”

Pipeline technical details n The pipe will be constructed from high-density polyethylene and steel pipework and will consist of a main spur with three ‘legs’ serving four distillery termination points. n The pipeline will follow the route of the A95 and continue south through Marypark and cross the Bridge of Avon to supply the Cragganmore and Tormore distilleries. The pipeline will also ‘tee off’ at Delnashaugh and follow the B9008 and B9136 to provide gas to The Glenlivet and Tomintoul distilleries. n For most of its route, it will be buried under local roads. n It will transfer natural gas to Speyside from the existing gas network and will be designed to cope with expected demand of well over 4,000 cubic metres per hour. n Subject to relevant route proposals and roads authorities permissions, Fulcrum will begin undertaking the pipe installation in autumn this year.

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

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Event Review

Talking shop… Gerardine Coyne reports from The Energy Event’s Energy Information Theatre, which focused on practical advice to improve businesses’ energy management

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“Climate change must be regarded as market failure on the greatest scale the world has seen”

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he Energy Information Theatre took the delegate on a journey through why energy has to be reduced, the amount of investment needed in infrastructure, to best practice case studies that can save energy and money here and now. Phil Wynn Owen, director general of the International Climate Change and Energy Efficiency group at the Department of Energy and Climate Change, discussed the background as to why energy has become such a hot topic. He said: “The Stern Review in 2006 stated that ‘climate change must be regarded as market failure on the greatest scale the world has seen.’ It’s easy to forget the bigger picture of why temperature change is an issue, but it affects food supplies (crop failure), water supplies and ecosystems. It can cause extreme weather events such as flooding, which in turn lead to migration, political instability and wars. This insecurity and instability has a worldwide human and economic effect.” With the risk of abrupt and major irreversible changes, according to Stern, the costs of mitigation are cheaper than adaptation. “We need emissions to be 48GT [Gigatonnes] in 2020 to have a 50:50 chance of staying below a 2°C rise in temperature, and reductions thereafter to be above 4% per annum. If we continue ‘business as usual’, the figure will be 56GT in 2020, and even our current high ambition offers will result in 50GT. To stay below the 2°C rise, emissions need to be 44GT, so we are at least 6GT out. “The latest UN Climate Change Conference in Durban provided a platform to negotiate a new binding emissions treaty by 2015 to be implemented by 2020, and major powers such as the US and

China, may do more post-2012 leadership elections, but pledges are still short of the less than 2°C rise. “The UK needs to decrease emissions by 80% by 2050. To transform our electricity sector using renewables, CCS and new nuclear, it is estimated we need £110bn investment in energy supply. Current electricity market reform measures include: carbon price floor, contracts for difference and emissions performance standards, and initiatives include the Green Deal and the Renewable Heat Incentive.” The government – energy efficiency is key Trevor Hutchings, head of strategy and delivery, Energy Efficiency Deployment Office at the Department of Energy and Climate Change, said: “In the first 12 months of this Government, we set ourselves a carbon reduction target of 10%; we actually reached 14%. To achieve energy efficiency, the lead from the top – in our case the PM – is crucial to any

Hutchings: ‘The UK needs £110bn investment in energy supply

organisation. Secondly is the building management; systems are needed to ensure information comes in. Then there’s behaviour change both by staff and in actions. Lastly comes finance and the issue of how to fund energy efficiency measures. Industry needs to lead by example – if Whitehall can do it, anyone can.” The dissenter – build more power supplies James Woudhuysen, professor of forecasting and innovation, De Montfort University, said: “Power cuts are coming. There have been recent blackouts worldwide and the UK will not be untouched. Closing down power stations and failing to build new ones will mean an energy gap. My question is, if your energy use is more efficient – why wouldn’t you use more? We are not taking energy supply seriously. “Politicians should be taking risks and taking on difficult technologies. New technology may cause problems, but when we invented fire we also invented the fire engine. Lets build decent supplies whatever it takes. Energy research and development is down by two thirds since 1980; BP spends 0.3% of its profits on R&D, as opposed to Apple, which spends 14%. We need to stop debating sources and start debating capital and new technology. “Armstrong had 30 seconds of fuel left before tranquility – where’s that spirit today?” The case study – energy efficiency without much investment in technology Lilly is a global pharmaceutical organisation. In 2006 at its facility in Erl Wood, Surrey, it took the Carbon Trust Critical Opportunity Survey.‘ Lilly UK energy manager Keith Beattie told delegates: “You need to know where you’re using energy.”

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Event Review an hour, using 50% less time and saving 50% energy. Where VSDs were used to match fan speed to required output, the average speed was reduced and energy consumption dropped by over 70% with a six month payback in investment. “However, £50K initial investment is often seen as a problem, even though, in my opinion, it is a no-brainer,” states Brambley.

Woudhuysen: ‘We are not taking energy supply seriously’ In 2007, it installed meters across the site at a cost of about £50,000. In 2008, data validation took place and strategy development was implemented. In 2009, there was a nine per cent improvement in energy efficiency. Today the site is about 30% more efficient than in 2007. Three key elements to Lilly UK’s success are: n Process – energy management system, aM&T, programme governance n Plant – efficient plant and equipment, continual improvement n People – trained, competent, informed and motivated. Five lessons Lilly UK learnt are: 1. Start with data – install aM&T system and share key findings. Beattie says: “I shared information with our cleaning team, and they started reporting when automatic lighting systems weren’t working.” 2. Identify and use the tools you already have – building management systems and services engineers, lighting control. “We fixed switches for a few pounds and it saved us thousands.” 3. Look for synergies between business needs and energy goals – “For our laboratories, poor building controls meant poor environmental conditions for working leading to reduced productivity.” 4. Use existing business continuous improvement processes – “We used our Lean Six Sigma teams, who understood the problems, to design the solutions and implement them so the process

happened naturally. 5. Keep checking – improvement will degrade – ensure it is being sustained by regular recommissioning. “Our efficiencies have not been achieved through massive investment in technology – we only spent – £50K on meters in combination with using existing technology and we have made savings so far of £650K. Technology can help, but it is people that make energy efficiency improvements,” says Beattie. The case study– energy efficiency with investment in technology Steve Brambley, deputy director, GAMBICA, commented: “It’s an engineering principle to keep things running – 65% of UK industry electricity is consumed by electric motors, yet we estimate that 50% of motors have no form of control. This constant burning of fuel is inefficient and wasteful both in terms of fuel and costs. “There are two basic types of control: fixed speed (turn it off) and variable speed (turn it down). Motors can be switched off in downtime and non-production, and turned down where output is variable, damped or over-specified. “Businesses should seek out all motors – not just in heavy industry – look at ventilation, air conditioning, heating, refrigeration, chilling, lighting and handling. “An airport implementing automation to stop conveyors when not required, resulted in 30 stops

The future… Rodolphe d’Arjuzon, global head of research and founding director of independent analyst Verdantix, said: “Energy management is moving from tactical to strategic, from government-delegated to centralised. Instead of informal management systems, it will be ISO50001 co-ordinated. It will be integrated across sites, and payback expectations will vary across programs, rather than conform to a two-year window. It is critical to think about scale and the systemswide picture.” Carbon Culture director Luke Nicolson believed that “technical efficiency is easy to predict, whereas behavioural efficiency is difficult to measure. Engagement is needed for change; with fun, measurable and enduring interventions that give immediate and sustained value for all participants, ie. rewards and status. “Data needs to be made legible to enable technical savings. In a Treasury building, we implemented a reporting ‘app’ that resulted in 20 per cent daytime gas savings in two weeks. Workplace touchpoints attract and retain users without ongoing HR costs. “One example would be business leaders showing other businesses their energy data on mobile phones. This enables engagement activity, anytime, anywhere. “Reduce data collection overheads by building an infrastructure to bring together all business data. Analyse it and report it to staff and the public. Teaser data should be on your website; look what we’re doing. If you can show other people you are doing it, increase happens.”

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

“Technology can help, but it is people that make energy efficiency improvements”

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Event Review

‘The’ energy event The Energy Event 2012 may have closed its doors but the feeback from both visitors and exhibitors alike has been one of overwhelming satisfaction

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“The event is great way to keep in touch with the industry – it’s almost overwhelming”

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he Energy Event 2012, which this year was larger than ever, had a content programme that is unrivalled within the energy market. As well as the packed audience for celebrity speakers such as Alastair Campbell and Brian Cox, there was huge enthusiasm for the energy management policy, case studies and advice from the leading experts within the industry.  It is this sort of investment that has led to a 66% rise in the number of visitors to the event (following an 89% rise last year) taking it to 6,000-plus visitors. A visitor to the show who also represents a major UK energy company said: “I came to see customers and the debate. The event is great way to keep in touch with the industry – it’s almost overwhelming. Everyone from the industry is here. It is a really important thing for competitors to be rubbing shoulders with each other, with customers and potential customers at the same event. We don’t go to many other shows, but this is the most high profile exhibition and has a safe slot in my calendar.” Asif Rizvi, managing director of energy consultant and broker Local Green Energy, commented: “The

Brian Cox enthralled the audience at the Energy Insight Conference

event is a success in many ways. It was useful to be here alongside our peers and our suppliers. Also it was very useful in terms of new business. It is a very useful tool for getting our message out to the public.” All of the main energy issues were covered by the exhibitors and the conference providing a perfect balance between managing and reducing your energy and also how best to procure and reduce the burden of affordable supplies. Trevor Hutchings from the Department of Energy and Climate Change stated: “With energy efficiency, we need to lead by example – if Whitehall can do it, anyone can.” It is messages such as these that visitors can take away with examples from the best in class such as P&G, Dixons, British Land and TfL and technology providers that are offering leading edge solutions. Speaking in the Energy Information Theatre, James Woudhysen, professor of forecasting at DeMontford University, suggested that onsite renewable and co-generation might be the way forward with his comment “build your own energy supply – I don’t trust the state to”. At the Energy Insight Conference, Brian Cox enlightened the audience to the vast potential resource of energy. Apparently if the Higgs field was scaled up to only 1m2 the amount of energy within it would

be more than the entire output of the sun in one year. However, on a more practical level he suggested that nuclear fusion was far from insurmountable. Alastair Campbell brought his skill to bear on how best to influence Government and get the best energy decisions for the industry as a whole: “A minister can be influenced and it is up to us to do this and get the right decisions made rather than let the vested interested of the few dominate.” Speaking about the show, Wind Direct’s Claire Herdman said: “Compared to other events, where you sometimes spend more time with people that we wouldn’t consider buyers, or potential buyers, The Energy Event visitors are exactly the right level of seniority to make decisions.” Steve Swaine, sales director of The Energy Event, said: “The overall feedback from both exhibitors and visitors has been outstanding and thus cementing it from both parties as The Energy Event”. Next year’s event will take place on 10-11 September at the NEC Birmingham and, like this year, it will be co-located with The Renewables Event and RWM in partnership with CIWM. For more information, or to register your interest to attend in 2013, please visit www. theenergyevent.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Lighting

Lightening the care load An installation of XLed 25 sensor-controlled floodlights is enabling a care organisation to slash its electricity consumption and minimise maintenance

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“We knew there could be no compromise on health and safety, so we had to be sure that the sensors were highly sensitive”

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rskine is Scotland’s leading care organisation for ex-service men and women. Since its founding during the First World War, Erskine has grown to provide care for veterans at locations right across Scotland. However, like many care homes with significant lighting needs, it has struggled with rising energy bills and maintenance outlay. The halogen floodlights that illuminate the outside of Erskine’s care homes were identified as a key source of energy waste. These inefficient lamps used a disproportionately large amount of electricity, adding to Erskine’s carbon footprint and its ongoing costs. The lifespan of the halogen lamps was also short, meaning there was a constant need to replace dead lamps. In order to ensure the complete safety of its residents – many of whom are disabled or suffer from

poor eyesight – Erskine needed to find a way to light its external spaces without wasting so much energy. Latest technology In fact, Erskine was so concerned about energy consumption that it stipulated in its facilities management contract that energysaving should be a key part of the FM remit. Building support services group Arthur McKay, which won the contract, immediately set to work identifying the best ways to combat energy waste across all of the Erskine sites. “We recognised that it was time to upgrade Erskine’s floodlights, and we were keen to take advantage of the latest technology,” comments Arthur McKay small works manager David Weir. “LED floodlights seemed to offer the greatest energy savings. However, we wanted to select a tried-and-tested product. Our associate, Bradstone Lighting, had worked with Steinel products in the past and recommended them to us.” Arthur McKay installed Steinel XLed 25 floodlights across Erskine’s premises. The XLed floodlights provide a wide spread of bright, white light, but their low-energy LED design means that they are powered using just one fifth of the energy required by halogen floodlights. Previously, Erskine’s external floodlights had been controlled by a separate PIR (passive infrared) sensor. However, the new XLeds were fitted with a built-in, instantaneous sensor-switch. “We knew there could be no compromise on health and safety,” says Mr Weir, “so we had

to be sure that the sensors were highly sensitive. For us, that meant sensors that switched on the lights instantaneously and never left anyone in the dark.” He adds, “The XLed 25s proved very straightforward to install and very effective once in place. The Steinel floodlights are ultra-bright and switch on as soon as they are needed. Their stylish design gives a very sleek appearance, which really lifts the XLed 25s above what else is available on the market.” Another big concern for Erskine and Arthur McKay was the growing burden of maintenance costs. “The 50,000-hour lifespan of the LEDs made the XLed 25s a huge draw for us,” says Mr Weir. “The lifespan is extended even further by the highly-sensitive sensor control, which means the floodlights are never switched on unnecessarily. The XLeds also contain a function to stop the floodlights from overheating, preserving the product for longer. All of this dramatically reduces the need to replace dead lamps and frees up the facilities managers to carry out more important work elsewhere on the Erskine sites.” On-going savings Erskine’s campaign to boost energy efficiency and reduce maintenance outlay did not end with installation of the XLed 25s. In a bid to also combat energy waste from its internal lighting, Erskine has installed Steinel’s RS PRO LED S1 sensor-lights in the en-suite bathrooms of the residents’ rooms within its care homes. The combination of both installations has unlocked important, ongoing savings for Erskine – achieving significant reductions in electricity bills, maintenance costs and CO2 emissions. www.steinel.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Lighting

Car park turns on to savings A hotel in Malta has slashed its car park’s annual lighting costs by about €10,000 following an investment of just €360. Bill Mahoney reports

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hen a car enters the car park at the Grand Hotel Excelsior in Valetta, Malta, the lights switch on automatically at the level where they park, but it was not always this way. The car park is built into the side of a hill and has two levels used by customers. Previously the lighting was permanently switched on and the installed load was costing just under €12,000 per year (at 2010 prices). A short energy survey included a proposal to install lighting controls that were fitted early in 2011. The result was startling. The lighting full load is now never on for more than a maximum of two hours per day, realising savings of about €10,000 per year – all this for the cost of passive infra-red sensors and controllers totalling €360, making a payback of only 12 days. When pedestrians enter the car park by any one of the foot entrances, the lights automatically

switch on for a pre-set period allowing plenty of time to enter cars on leaving the premises. A benefit of this installation is maintenance. Much lower use of the lighting means that lamp failures are greatly reduced. Additionally, the sensors may be integrated into the security system such that any activity in the car park ‘out of hours’ is detected immediately by the security department. From an energy efficiency practitioner point of view, it is a ‘no-brainer’. I am amazed that many more do not adopt the principle, especially as energy costs are,

inevitably, going to go up and most likely never down again. The payback is incredible but the calculations speak for themselves. The hotel’s own engineers installed the controls, saving on the costs of using contractors. Similarly, a public car park in Southampton has also installed lighting controls that realised savings of 53%. The question now is: do you or your customers automatically control your car park lighting yet? Bill Mahoney is an affiliate member of the Energy Institute and runs consultancy CTC Energ, bill@callex. wanadoo.co.uk

District Council, as well as an annual CO2 reduction of almost 100 tonnes. Wycombe District Council energy officer Graham Weston, comments: “Wycombe District Council is committed to ensuring our impact on the environment is minimised as far as possible. The installation of these LED lights has not only reduced our annual carbon emissions at Wycombe Sports

Centre, but is also saving the council and the taxpayer over £13,000 a year in electricity costs.” Wycombe District Council financed the lighting installation at Wycombe Sports Centre using Salix ‘invest to save’ funding and the complete retrofit Goodlight installation is on course to achieve a payback period of less than three years. The Goodlight high bay lights specified for Wycombe Sports Centre are already being used in a multitude of other high bay applications, including other leisure centres, retail outlets, warehousing and distribution centres and more. They are available in various colour options, are IP65 protected and covered by Goodlight’s comprehensive five-year guarantee. www.ledecolights.com

High Wycombe sports centre sees the light The use of retrofit LED lighting has provided impressive first-year savings in kilowatt hours, CO2 and electricity costs for a High Wycombe sports centre. Supplied by Surrey-based manufacturer LED Eco Lights, the new lighting system incorporates high bay lights from its Goodlight range. Since installing Goodlight high bay lighting in Wycombe Sports Centre last year, annual kilowatt hours consumption has dropped by 77% from 217,382 to 49,817. This represents an annual cost saving of more than £13,000 for Wycombe

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

Above left: the general arrangement of one of the car park’s levels, fully lit 24 hours a day, every day. Above right: a detector on the spiral driveway into the car park now turns the lights on at the level when a car is approaching. Detectors are also positioned above the entances from the access stairways when pedestrians enter the car park

The Goodlight installation is on course to achieve a payback period of less than three years in High Wycombe

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Lighting Products

Luxonic lighting achieves quality and environmental standards Luxonic Lighting has underlined its sustainability credentials by becoming a Carbon Trust accredited supplier as well as achieving IS0 14001. It had to demonstrate to the Carbon Trust how its products and services reduce clients’ energy bills by fitting its highly efficient luminaires and control systems. An organisation wishing to reduce their carbon footprint and save money can approach the Carbon Trust, which will then offer Luxonic Lighting as a supplier of lighting products that is certified to carry out the work required. Thomas Ollier, corporate development manager, commented: “Typically our clients can see payback within the year on a refurbished lighting scheme.” Luxonic Lighting has also now earned the right to display the coveted ISO 14001 certification mark to demonstrate its conformance to the standard. The independent assessment was conducted by leading certification body, UKAS Management Systems, and it demonstrates Luxonic Lighting’s commitment to customer service and quality in delivery. www.luxonic.co.uk

Megaman’s lamps take off at Birmingham Airport

Megaman’s Liliput range of lamps have been used throughout the new Meriden Bar & Restaurant within Birmingham Airport, which is run by SSP – Food Travel Experts. Used as an alternative to halogen light sources, the energy-saving lamps will ensure low maintenance costs and energy consumption. Offering a remarkably high lumen output, the Liliput lamps are available in wattages of 8W, 11W, 14W, 20W and 30W and have a lamp life of 10,000 to 15,000 hours.

A particular feature of the lamps is the specially designed integral lamp tube protector, which is inserted between the arcs of the tubes to ensure there is no direct contact between the surfaces of the tubes. In this way, Megaman has overcome the fragility problems previously associated with conventional ultra-compact energy-saving lamps, where the tubes are located close together. www.megamanuk.com

Harvard Engineering to illuminate the US lighting market Harvard Engineering extends its brand presence into the US lighting market following the launch of successful operations in Asia, Europe, the Middle East and Africa and in recognition of the significant opportunities for its market-leading products in North America. John McDonnell, CEO and managing director of Harvard, commented: “We are investing heavily in this new business to create a local presence that can properly support existing and new customers so that they in turn can make the most of the tremendous energy saving opportunities that are available to them by introducing new lighting technologies within our current and planned product offering.” Located in Southern California, Harvard Engineering Americas Corporation has two primary goals: to develop the company’s

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market-leading innovative LED drivers under the globally recognised CoolLED brand name, and to target broad-scale adoption of LeafNut, Harvard’s leading wireless control system for street lighting that has already been deployed by approaching 100 municipal authorities worldwide, including London and Paris. Heading up the North American operation is Antony Corrie (pictured) , the former vicepresident of sales at Future Electronics Corp. Antony brings 18 years’ global electronics sales and lighting experience to the Harvard team. www.HarvardEng.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Lighting Products

Delmatic plays a key role in lighting King’s Cross Station’s new Western Concourse A Delmatic lighting management system with customised features is providing energy-efficient, addressable control of lighting for the recently unveiled Western Concourse at Kings Cross in London. Delmatic worked closely with consulting engineers Arup in the design of the system. The Delmatic system controls lighting throughout the project, including front-of-house and back-of-house areas, as well as decorative concourse and facade lighting. The lighting is configured into a variety of modes or scenes, which are activated automatically at scheduled times and the complete system is managed and monitored across the IP network using animated graphical software housed in the station’s central control room. “Energy efficiency was a vital element in the design of the lighting and the controls play a key role in achieving this,” explained Arup’s Simon King. “For example, the daylight control is quite complex because sunlight enters the concourse at different angles at different times of day with some variation throughout the year – and it is essential that design illuminance levels are maintained for safety,” he added. www.delmatic.com

Contrac manufactures range of LED fittings Contrac Lighting has announced the launch of a range of LED fittings to complement its fluorescent office and factory lighting solutions. By using the Tridonic Stark QLE system and the Philips Fortimo LED line system, and working closely with both companies, Contrac has been able to manufacture solutions that deliver market-leading performance. For the open and louvred fittings, LV (isolated) panels were more suitable and in the closed panel fittings, the more efficient HV (nonisolated) system is being used. Several of the luminaire designs have been developed and manufactured based on Contrac’s existing office style fittings Softlux 1, Softlux 5 and Levance, with two completely new fitting styles developed named Softlux 8 LED and Prism LED HO. Contrac is extremely pleased with the performance of all the new LED fittings. As an example, the Prism LED HO fitting, unlike most fittings of this type on the market, will replace a 4x24w option, on a one for one basis, while delivering a 48% energy saving. www.contrac-lighting.co.uk

Miniature presence detectors CP Electronics has launched a series of HS PIR (Passive Infrared) miniature presence detectors for the automatic control of incandescent, fluorescent and compact fluorescent lighting systems. The new HS PIR sensors are available in three options: premium, direct dim (for DALI or DSI digital dimming ballasts) and analogue dim for variant control 1-10v dimming ballasts. Once movement is detected, the unit incorporating the sensor turns the load on and when the area is vacated the load will switch off, after an adjustable time out period. The sensor can be mounted inside or adjacent to the light fitting using fixing clips. Functionality of the HS PIR miniature sensors is fully programmable using CP’s UHS5 or UNLCDHS IR handsets. www.cpelectronics.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

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Viewpoint

aM&T - now more important than ever Automatic monitoring and targeting (aM&T) has had a major impact on energy management in the UK. But there is more to come, notes Alan Aldridge (pictured)

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“The role aM&T can play in bringing water into mainstream utility management has still to be explored… new applications and innovations are continually being discovered”

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ith ESTA’s annual automatic Monitoring & Targeting (aM&T) conference approaching its 11th year, some might think there is little more that can be said about the technology. But like many other fields of energy management, technology continues to advance and offers more savings, more applications and more examples of best practice to share and apply. It is worth looking back at just how much has been achieved over the past decade. At the start of this period, the technology was relatively untested although a number of major energy users were trialling it. It proved a spectacular success and the experiences of these ‘early movers’ persuaded many others to take it up. Government incentives Significantly the Government became sufficiently convinced of its effectiveness that it offered incentives through the Building Regulations – a discount on the Target Energy Rating for consumers installing this technology – and the CRC Energy Efficiency Scheme, although this particular offer fell foul of the restructuring of the scheme. Now aM&T is a standard part of the energy manager’s armoury and lower electrical component costs and greater sales volumes have driven down prices, making it cost-effective for much smaller organisations. In fact, the number of organisations adopting this technology has grown by about 400% over this period. And over that time, the technology has extended its functionality; one example is the way in which many systems now

have real-time energy dashboards which can bring the current energy use to the attention of all employees, not just the energy manager. So that was the first decade of aM&T, but what is to come? Well, we are starting to enter the roll-out phase of the Government’s smart metering programme. There are still issues about how aM&T will fit into this framework and how it can be used to maximise potential savings in this environment. Many organisations are finding the demands of the CRC Energy Efficiency Scheme a challenge and ESTA believes that aM&T can play a major part in overcoming these problems.

Conference “automatic Monitoring & Targeting: the 11th Annual Conference and Exhibition” will be held on Thursday 28 February 2013 at the Ricoh Arena, Coventry. To register for this free conference, visit the ESTA website at: www.esta.org. uk/EVENTS/2013_02_28_aMT_ Conference/index.php

The gas market has been slow to adapt to new technologies such as aM&T but even here there are new innovations such as ASPCONNECT. This new ESTA system identifies each automatic meter reading installation. Those who make changes and additions can check the details before visiting site, minimising wasted visits and customer site disruption. The role aM&T can play in bringing water into mainstream utility management has still to be explored. And as with all relatively new technologies – and aM&T in its current user-friendly form is little more than 10 years old – new applications and innovations are continually being discovered. ESTA’s next National aM&T conference, to be held at the Ricoh Arena in Coventry on Thursday 28 February, will attempt to capture many of the developments currently going on in this sector of the energy management field. It is a young and innovative area of the market. So do come along and find out what is happening and what is being planned. And behind all this is the energy manager’s perennial priority – to lower consumption, cut waste and reduce bills. With rising and volatile energy prices, the task remains as urgent as ever. aM&T combines the wisdom of tested monitoring and targeting techniques with the ease and speed of automated systems. It makes real time control a real possibility. It can make a real difference to the energy manager’s task. Alan Aldridge is executive director of the Energy Services and Technology Association (ESTA) www.esta.org.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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HVAC

Condensing benefits Most warm air heaters installed in the UK are non-condensing but this is set to change. Phil Brompton (pictured) outlines the benefits condensing units deliver

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“It has been estimated that about 18% of the world’s CO2 emissions arise from noncondensing boilers and heaters”

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arm air space heaters are the heating technology of choice for spacious buildings such as factories, warehouses, retail ‘sheds’, leisure centres, workshops etc. Such heaters need to comply with the Building Regulations Part L2, which currently requires a minimum nett efficiency of 91% for these units. In most cases this efficiency is delivered with noncondensing units. However, this is set to change under future editions of the Building Regulations, with a requirement for higher efficiencies. As yet we don’t know what efficiency levels will be set or when, but 101% nett efficiency is already required for inclusion in the Energy Technology List to qualify for Enhanced Capital Allowances. It seems likely that future Building Regulations will require comparable efficiencies within the next two to three years and this will require the use of condensing technology. Condensing warm air space heaters are not new to the market and as a company that manufactures both types we don’t have a particular axe to grind. However, I would suggest that a move to condensing for all warm air space heaters is something to be welcomed. Not least because it has been estimated that about 18% of the world’s CO2 emissions arise from non-condensing boilers and heaters. There are also significant cost benefits for building

benefits that outweigh higher capital and installation costs. This can be illustrated by considering the running costs for a 140kW output gas-fired warm air space heater operating for 10 hours per day, 5.5 days per week during a typical heating season (prices based on commercial gas tariffs, August 2012):

operators as explained below. Condensing warm air space heaters can be operated on natural gas or liquefied propane gas (LPG) and are equipped with a secondary internal heat exchanger which extracts residual heat from the flue gases. This residual heat is transferred into the warm air stream for heating the space, thus increasing the unit’s heat output without the use of additional fuel. Inclusion of a secondary heat exchanger results in a slightly higher cost of condensing units, compared to non-condensing. As this residual heat is recovered the temperature of the flue gases is reduced and this results in condensation, just as with condensing boilers, so provision needs to be made for safe disposal of the condensate via a drain point, The volumes involved are quite low with typical condensate production rates of 0.06 litres/kWh for natural gas and 0.03 litres/kWh for LPG. In new installations a condensate removal system can be designed in from the start and will have a very small impact on installation costs. Where non-condensing units are being replaced with condensing heaters, provision of pipework to carry condensate away may be more complex and therefore cost a little more. Nevertheless, there are still cost

Warm air space heater type running costs (pa) Non-condensing heater meeting CE min efficiency level (84% nett) – £5,073 Non-condensing heater typical efficiency levels (91.5% nett) – £4,660 Condensing heater (101% nett) – £4,222 Running cost savings – £413 to £851 It is important to take installation costs into account and these will vary considerably from one site to another. For the purposes of this illustration, though, we can consider a modern, well-insulated building of, say, 2,500m2 floor area and a volume of 13,500m3 requiring the above 140kW heater. Typical end user customer installed prices would be: Warm air space heater type installed costs Non-condensing – £6,500 Condensing – £7,900 The cost difference of £1,400 could potentially be recovered in less than two years when compared with a non-condensing heater with minimum efficiency levels. Given that warm air space heaters should give at least a 10 year life – and many of ours have lasted much longer – the potential life cycle cost savings should be attractive to any building operator. Phil Brompton is managing director of Powrmatic www.powrmatic.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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HVAC

Seeking a solar solution Solar thermal water heating should always be considered when a hot water system is being specified for a commercial or public building, says John Foster

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“When a new hot water system is required it could still be worth becoming ‘solar ready’ by installing a solar thermal cylinder with two coils”

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oday, if a commercial or public sector building requires a new water heating system and has a high demand for hot water, the installation of a solar thermal system should always be considered. Taking this approach can save energy – reducing fuel costs and carbon emissions. Solar thermal systems collect free solar radiation, available throughout the year, via flat plate panels or evacuated tubes positioned on a building’s roof. This energy is used to heat water stored within a specially designed cylinder, which then serves taps, showers and any appliances with a hot water feed. When necessary, a supplementary gas boiler or electric immersion heater will bring the water up to the required temperature (at least 60°C to kill legionella bacteria). Even though this type of water heating system still relies on fossil fuels to a certain degree, the technology is capable of providing all of a building’s hot water during the summer and up to 60% year round. And even on cold, cloudy days the solar radiation will still be pre-heating the water in the cylinder, saving gas or electricity. However, we believe that optimum energy savings and performance can only be achieved with a high-quality, correctly sized solar

thermal cylinder with a dedicated solar coil. Importantly, cylinder sizing needs to allow for the fact that in the UK solar gain differs throughout the year, and during the winter months will be significantly reduced – because there is less sunlight and fewer daylight hours. And, as the usable hot water derived from solar energy will vary, it is likely that the facilities will sometimes be almost totally dependent on the supplementary fuel source (usually gas or electricity) for water heating. So, when there is little solar gain, the cylinder should still be capable of meeting normal hot water demands – so the nondedicated solar volume must be sized accordingly. We also believe that a true solar cylinder should have a dedicated solar heating coil. This is something that some cylinders lack, simply using heating coils designed for traditional boiler systems. With an increased surface area to give better thermal transfer, a dedicated coil will provide maximum efficiency and heat output from the solar energy. Furthermore, solar thermal cylinders should also be wellinsulated. After all, once the sun’s energy has heated up the water, essentially for

free, it is crucial for heat loss to be minimised. It is worth noting that even if an organisation is not quite ready for a solar thermal installation, when a new hot water system is required it could still be worth becoming ‘solar ready’ by installing a solar thermal cylinder with two coils. Then the remaining parts of the system, such as the collectors and pump station, can be added in the future when the necessary funds become available. Financial incentive It is also worth mentioning that solar thermal collectors are included in the government’s non-domestic RHI (Renewable Heat Incentive) scheme – offering payments to the owner of the heat installation over a 20-year period. The current tariff for solar collectors (of less than 200 kWth) is 8.9p/kWh. Megaflo Commercial (pictured), Heatrae Sadia’s new range of unvented cylinders designed for commercial and industrial applications, includes eight cylinders suitable for use with solar thermal technology, in capacities of 400 to 2,500 litres. Megaflo Commercial boasts high flow rates, fast recovery, the option of a 10bar operating pressure and highly effective insulation to minimise heat loss. Solar thermal water heating can help to save energy and fuel costs, so it is always worth considering this technology when a new water heating system is required, especially if there is a high demand for hot water. However, to ensure maximum savings are achieved, it is essential to select a high-quality and high-performing solar thermal hot water cylinder, and to ensure that it is correctly sized for the application and is well-insulated. John Foster is product manager at Heatrae Sadia www.heatraesadia.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


HVAC

Curtains for you Andrew Saxon tells us more about the science behind air curtains and provides some advice on design, specification and installation

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hen correctly installed over a doorway, an air curtain will save energy by minimising the amount of cold air entering the building while keeping the warm air inside. However, a lack of knowledge and understanding means there are some poor air curtain installations in the UK. Without an air curtain, heat will naturally escape from a door when it is opened. Natural convection means warm air will spill out of the top, being replaced by cold air coming in at the bottom. Air curtains disrupt and minimise this flow, by providing a continuous stream of air circulated across the doorway. The incoming cold air is conditioned to reach a temperature of about 20-25°C, with the warm air being derived from various sources including direct electric heating and low, medium or high pressure hot water. Modern air curtains are designed to operate with 60/40 condensing boilers and heat pumps – increasing their efficiency. Air curtains help to provide a constant and comfortable environment around a doorway. However the principal benefit is that they reduce the amount of heating required. It is estimated an average double doorway could be losing as much as 32kW of energy every hour, and at 10p per kWh this can equate up to £7,000 worth of energy per year – but by installing an air curtain, wastage can be cut by up to 70%. However, several myths and misunderstandings about how air curtains work, and how they should be installed, have resulted in a significant number of poor installations in the UK. This is a major concern, as if designed, sized and installed incorrectly energy savings will not be fully realised, and in some circumstances completely negated. Poor installations also damage the reputation of the air curtain industry.

Without an air curtain, heat will naturally escape from the top of a door door (left). Air curtains disrupt and minimise this flow (right) An air curtain is not a heating appliance. Though its air stream is warm (unless it is an ambient/no heat model) – and therefore can contribute to the heating around an entrance – it will actually work alongside a building’s heating system, rather than replace it. In terms of the actual installation, air curtains are usually fitted horizontally over a door, but are sometimes mounted vertically, to the side. An air curtain must be installed inside the doorway, as close to the opening as possible. It must be just wider than the doorway opening with an overlap at both sides (or at the top if it is a vertical installation). It is important to note that air curtains should be specified on the size of the door, not the kW output. The design of the air curtain must be suitable to discharge air across the whole height and width of the opening, at a suitable supply air temperature, and the heat output of

the air curtain must be sufficient to temper the volume of air coming in at the entrance. It is really important to spend time getting the jet stream right; it won’t be effective if it has too little velocity or is too powerful*. It is also worth considering the use of advanced, automatic controls to increase energy efficiency. . By minimising the amount of cold air that enters a building, air curtains significantly reduce energy consumption and carbon emissions. However, for energy savings to be delivered, products must be designed, selected and installed correctly. * An engineering design procedure for calculating the supply air flow and thermal capacity of an air curtain is explained in the BSRIA Application Guide 2/97, Air Curtains – Commercial Applications. Andrew Saxon is marketing manager at Biddle Air Systems www.biddle-air.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

“An average double doorway could be losing as much as 32kW of energy every hour, equating up to £7,000 worth of energy per year”

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HVAC

The bigger picture Energy efficiency is the key as to which refrigerant is best placed to replace the ones in common usage today, writes Graham Wright (pictured)

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“Dismissing something as dangerous without a more accurate risk analysis, will limit the potential of air conditioning to become genuinely sustainable”

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ith the expected phase out of HCFC refrigerants, there is much debate as to which gas will be most widely adopted for air conditioning, heat pump and chiller systems in the hope of maximising energy efficiencies and mitigating future global warming impact. The likely candidates are R32, Propane (R290), CO2 (R744) and HFO blends, each with advantages and disadvantages. It is vital to assess the use of refrigerants based on five key factors: ozone depletion potential; global warming potential; natural resource efficiency; affordability (vital in developing countries); and safety. Ozone depletion potential must be zero. This is a given (due to the global Montreal Protocol agreements and EU ozone depleting regulations) and requires no further justification. But global warming potential is slightly more complicated. GWP must be considered from an entire life cycle climate performance perspective. This means that the total energy used over the life of one air conditioning or heat pump unit is converted to its global warming equivalent (indirect emissions), then the global warming equivalent of the direct refrigerant emissions is added to this. This method gives a much more accurate evaluation of the true global warming impact of a unit throughout its life cycle. Only looking to the GWP value is, therefore, not the correct way to assess refrigerant options, as a unit with a ‘medium’ GWP may have a lower total impact than a unit using a ‘low’ GWP refrigerant. As it is predicted that 75% of future HFC emissions will originate from developing countries, it is important to find solutions that are affordable on a global scale. It is also vital to be efficient with natural resources and the environmental

and economic parameter to “do more with fewer materials” should be adhered to. Potential for reuse As such, refrigerant options must be assessed on their potential for reuse. For example, a single-component refrigerant, such as R32, has an advantage. This same rule applies to the assessment of raw materials used to manufacture equipment. So, even when low efficiency refrigerant options could be improved by using more refrigerant in larger systems, this would be detrimental to the total ecodesign balance. It goes without saying that safety is paramount. The ASHRAE 34-2010, ISO 817, EN378 standards on the designation and safety classification of refrigerants indicate that R32 can be applied safely in a wide range of applications. However, the thinking on safety varies considerably. Dismissing something as dangerous, without a more accurate risk analysis and serious consideration of the other issues, can and will limit the potential of air conditioning to become a genuinely sustainable industry. Many factors affect safety, including product type, volume of refrigerant charge, room size, and capacity of switch type in the room. Furthermore, ignition does

not usually occur from the type of electrical capacity used in domestic switches. It is also important to understand the scale of the risk. With R32, for example, even when performing soldering work, a flame will blow out naturally and not continue to burn because the flow of leaking refrigerant is faster than the speed that transmits combustion. Tests carried out by Daikin Industries and Suwa Tokyo University of Science (Experimental safety evaluation on flammability of R32 refrigerant, Yajima R et al, ICR 2011), show that even if combustion of R32 occurs, it is not explosive and the possibility of fire spreading is extremely low. While each of these points is important, it is also crucial that these are not focused on exclusively, without giving due weight to the issue of energy efficiency. Without the highest possible levels of energy efficiency, future systems will require more natural resources to power them and will emit more carbon than is necessary – clearly a detrimental step in meeting the UK’s tough carbon reduction targets. The definition of energy efficiency needs to include not just the seasonal efficiency averaged over the cooling or heating season but also the efficiency in peak load conditions (on very hot or very cold days). The first of these is important to reach the energy efficiency goals set by various EU directives (Ecodesign, Energy Efficiency Directive, EPBD, Renewable Energy Source Directive) whereas the peak load efficiency is important to avoid the requirement for extra power plants. It is clear that deciding upon a new refrigerant will be difficult and debate is likely to continue for some time to come. Graham Wright is legislation specialist at Daikin UK www.daikin.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


HVAC Products

MHG Hybrid combines the best of both worlds

The ProCon Streamline Hybrid from MHG Heating delivers low carbon heating through a combination of air/water heat pump and gas condensing boiler, complete with integrated control system. It can also be combined with a solar thermal system. The ProCon Streamline Hybrid automatically selects the most economical energy source or energy mix and has the ability to adjust the bivalence point to optimise heat pump operation and energy savings. The heat pump offers modulation from 3.5kW to 10.2kW and the gas condensing boiler offers modulation from 7.7kW to 26kW. Designed for upgrading existing gas heating systems, the ProCon Streamline Hybrid incorporates hydraulic decoupling of both heat generators so there is no need to change the existing system hydraulics. It is fully pre-assembled for ease of installation with only two refrigerant lines to the outside unit, while the compact dimensions make it easy to locate in an existing plant room. All units are supplied with a 36-month warranty for the entire unit and a 60-month warranty for the heat exchanger. www.mhgheating. co.uk

Coolmation adds new heat pumps to range Manufactured by Rhoss in Italy, Coolmation’s range of heat pumps now includes the new Rhoss Compact-Y Modulare. This air-towater unit provides 34kW heating capacity and can be combined with up to four others to provide a total heating capacity of 136kW from a very small installation footprint. It is capable of generating hot water up to 60°C, with the system capable of operating down to -20°C ambient. Another release is the Rhoss Mini-Y Revolution. Running on R410A, this five-

strong air-cooled range, available in capacities from 4 to 15kW, features an inverter controlled hermetic rotary compressor. This provides continuous modulation of the capacity to ensure highest operating efficiency. The Mini-Y Revolution can generate hot water up to 60°C operating at temperatures as low as -20°C ambient. For larger installations, Coolmation has also launched the Y-Pack EXP range of hybrid aircooled heat pumps, from 80kW to 320kW. This high-performance range of seven heat pumps produces both hot and cold water simultaneously and is especially compact in size to ease installation for contractors. Meanwhile, Coolmation will also offer the new Y-Flow EXP range of water-cooled hybrid heat pumps from Rhoss for river, lake, ground water and geothermal applications. Low noise and an ESEER exceeding 5 are typical of both these new ranges. www.coolmation.co.uk

Electric boilers provide solution at island Abbey

Atlantic Boilers of Oldham has commissioned two electric boilers at Iona Abbey on the Isle of Iona. It forms part of a programme of renewal of the engineering installations in a number of historic buildings including Edinburgh Castle and Stirling Castle in order to reduce carbon emissions. The abbey was founded by Saint Columbus in AD 563. It was a celebrated focus for Christian pilgrimage and now welcomes thousands of pilgrims every day during the summer months. Two Atlantic 90kW Multi-elec

boilers are the first stage in replacing four old boilers. It is intended that a sea or ground heat pump will be added later. The floor-standing Multi-elec boilers have a small footprint and 99% GCV efficiency. They serve the abbey heating and provide heating and hot water for up to 140 residents and staff in the adjoining accommodation. The range for these high-quality boilers is 90kW to 630kW, making them suitable for domestic and large commercial use. www.atlanticboilers.com/pdfs/ electric_range.pdf

Matrix software for fan coil units Ability Projects has applied the third generation of its ‘state of the art’ Matrix controls strategy to its Trojan 270, Altas 235 and Slimline 190 fan coil units as a further step towards the incorporation of Matrix to its entire product range. The Matrix system continues to feature ‘self setting’ air volumes but now also includes, not just self-setting water flow rates but also ‘self-correcting’ water flow rates. The air volume side of a Matrix fan coil is fairly simple in that the ductwork system with which the fans interact is small and contained. A fan blows into the discharge plenum of the fan coil, onwards through a duct of some kind, from there through a discharge plenum and grille and finally into the space. So the air system is relatively small and has few components to adversely influence the air volume output of the Matrix unit. The new Matrix ‘self-correcting’ routine introduces a ‘strategy loop’ – a software code that monitors the performance of the fan coil unit and temporarily adjusts the water flow rate upwards or downwards if it senses that the unit is, in any sense, struggling. If something in the system does start to divert water from the fan coils, they will selfcorrect. This features in effect compensates for the varying water supply temperatures that are always present across a large development. The real benefit of Matrix, however, remains its ability to monitor and then adjust any aspect of the fan coil remotely; including water flow rates. www.abilityprojects.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

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AWARDS HEADLINE SPONSOR

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Energy Efficient Product Energy Efficient of the Year Retrofit/Refurbishment Arctic Circle, Intelligent Glycol of the Year Bowater Architectural, System10 Aluminium Ceravision Lighting, ALVARA Ceravision Lighting, HEP Technology GDL Air Systems, Intelligent natural ventilation range PhotonStar LED Group, CLE ChromaWhite Tungsten+ LED Module Vent-Axia, Lo-Carbon Tempra Venture Lighting Europe, Part Night WAF Fassadensysteme GmbH, Solarthermal facade

Lighting Specifier of the Year

Anglian Water, Bedford Sewage Treatment Works Arctic Circle, The Co-operative Food Store at Piccadilly Gardens, Manchester Chapman Bathurst, 199 Bishopsgate, London City West Housing Trust & EnviroVent, Engels House, West Salford Mott MacDonald, 10 Fleet Place, London Mott MacDonald, G.E. Fogg Building, Queen Mary University London NIFES Consulting Group, Major Energy Centre Refurbishment, Royal United Hospital, Bath

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Judges Supreme Award

Renewable Energy Project of the Year Arctic Circle, The new Spar Store at Sedbergh Dalkia, Dairy Crest, Davidstow FMC Technologies, Wind Turbine Project Hackney Homes, Shoreditch Heat and Gascoyne Points CESP project John Laing Integrated Services, Metropolitan Police Service: Photovoltaic Works MITIE Asset Management, Renewable energy strategies for sustainable development Syzygy Renewables, Land Securities Tesco Stores, Renewables Project - Warwick

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23/08/2012 14:45


Combined Heat & Power

The whole story Many managers and directors are now considering CHP as a viable alternative to purchasing electricity from energy companies, says Marcus Dodsworth

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he main benefit of a CHP system is that the overall annual energy costs can be reduced. There will be a shift in gas/electricity balance of a building’s total fossil fuel consumption but any rise in gas costs will be more than offset by savings in electricity costs. Many buildings have sufficient demand for space heating and hot water to use a small CHP plant. CHP providers can synchronise multiple units together to create a very efficient on-site power station.

“If you have a heat load present on your building for at least 4,000 hours per year, then CHP could generate a substantial amount of free electricity”

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Whole-life costing Whole-life costing is an economic evaluation technique that encompasses the total cost of an asset over its operational life including initial capital costs, maintenance costs, operating costs and disposal costs. Whole-life costing is an effective tool for considering: n business justification; n procurement strategy; n concept approval; n investment decision; n readiness for service; n benefits/cost evaluation. Whole-life costing encourages companies to look beyond the upfront capital costs to take a longterm view of other important factors, such as energy emissions. When carrying out such an exercise it is important to take into account the

capital expenditure as well as all operating and fuel costs. It is important to size the CHP system correctly to take into consideration the expected energy demands. Specialist companies, such as shentongroup, have the experience and technical know how to undertake such studies. Oversized CHP units fail to achieve the anticipated savings and have to dump or transfer heat energy or run at lower capacity. Undersized units miss out on potential savings. If you have a heat load present on your building for at least 4,000 hours per year, then CHP could generate a substantial amount of free electricity while meeting this heat demand. Remote monitoring of CHP systems allows maintenance to be carried out before any problems arise. Maintenance programmes specifically designed for CHP systems, such as shentongroup’s Infinium24, provide CHP users with a fixed, ongoing cost of ownership. The ability of knowing these costs upfront enables maintenance to be calculated within the whole life costing of the CHP system. Other advantages that need to be taken into consideration when calculating whole-life costs are: n 95% efficient means less money spent on energy; n located on site means no

transmission losses – what you generate is yours to use; n the gas used can be exempt from the Climate Change Levy; n reduction in the use of your existing boilers; n power-cut back up facility. Although capital costs of CHP equipment are higher than conventional boiler plant, the equipment usually has lower wholelife costs when expenditure on operation, maintenance, heating, ventilation and air conditioning and fuel become part of the equation. When reviewing the whole-life costs of CHP the following need to be considered: n a comparison of the conventional provision of heat and power by boiler and electricity purchased from the local electricity network; n size of distribution for each building; n the size of the CHP plant that is appropriate for each building size and type based on heat demand and by optimising the combined cost of heat and power supply; n an assessment of the capital and service costs associated with operation of the CHP plant and assess the cost effectiveness based on gas and electricity prices and projected increases in these costs; n the calculation of the potential income from exporting excess electricity to the grid; n the calculation of the primary energy saving from the CHP capacity in accordance with EU Guidelines. The analysis of whole-life costs is a key driver in enhancing organisational sustainability both directly through reduced energy costs usage and waste, and by establishing an explicit framework for lifetime review against which sustainability can be assessed. Marcus Dodsworth is technical service division manager, shentongroup www.shentongroup.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Ask ESTA how to identify approaches that will work on your sites and reduce costs now.

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Compressed Air

Efficiency is in the air Andy Jones offers five tips for compressed air users to ensuring their compressed air system is running as energy efficiently as possible

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o ensure a compressed air system runs as energy efficiently as possible several measures must be taken – not necessarily including investment in a new compressor. The five top energy efficiency mesures are:

“In many companies, in excess of 30% of air generated is wasted through leaks

1. Assess the system – and use ISO11011 when implemented Before any steps can be taken to improve energy efficiency, it is essential for businesses to measure how much compressed air they use, if they use it correctly and how much it costs, and to assess if their compressors, air treatment and pipework delivery system are appropriate for their production processes. The best way to achieve this is through data logging. This evaluates compressed air needs and the efficiency of a system by recording and measuring air consumption profiles over a sevenday period, followed by discussions to identify unusual patterns or planned process changes. The forthcoming ISO 110011 standard, Compressed air – Energy efficiency – Assessment, due to be implemented in 2013, will hopefully encourage end users to assess their compressed air systems and subsequently take actions to reduce their energy use.

A leak detection survey should be carried out annually 2. Check for leaks and reduce pressure In many companies, in excess of 30% of air generated is wasted through leaks. The starting point is a leak detection survey, ideally done on an annual basis. Meanwhile, just a one bar reduction in pressure can reduce consumption by 7%. 3. Consider heat recovery Compressors generate a large amount of heat, and in some installations up to 85% of this can be recovered and used for water heating or local space heating. 4. Do not over specify air quality It is important to specify the correct air quality in accordance with ISO8573 part1:2010; if a very high quality of air is only required in one particular area, producing that quality for the entire system could be false economy. Point of use air treatment would be a more economical option. 5. Invest in a new, energy efficient compressor – but only if this will achieve savings Mattei is committed to helping its customers reduce their energy usage through the above measures. In fact, taking these steps could reveal a new compressor is not needed. If a new compressor is required, it is important to not just replace it like-

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for-like. The advice of a compressor specialist should be sought, and a data logging exercise carried out. As well as ensuring the compressor or combination of compressors are suitably sized, it is important to understand the specific energy efficiency of the compressor; in other words how much electricity is required to produce one cubic metre of air per minute. Mattei’s Maxima range (pictured) offers specific energy efficiency from just 5.4kW per cubic metre per minute at seven bar working pressure. Similarly, a choice needs to be made between variable or fixedspeed technology. In recent years variable-speed compressors have been seen as a key way to reduce the cost of producing compressed air (savings are typically 30% or more). However, this type of compressor will only save energy if there are true peaks and troughs in the demand for air, and only when these variations fall within the efficient working band of the compressor. It could also be beneficial for systems with multiple compressors to also consider installing a compressor management system. Our Concerto controller allows simultaneous control of up to 16 compressors and offers energy savings of more than 35%. Where budget is concerned, it is important to keep in mind the initial purchase price of a compressor actually makes up a very small part of the total lifetime costs. The electricity consumed during operation over a five-year period accounts for about 75% of the total cost of ownership, including the initial capital outlay. Therefore a higher priced compressor could pay for itself in just a matter of months if it can reduce consumption. Andy Jones is general manager at Mattei www.mattei.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


AC Heights in Sustainability WE&E 93x275:Layout 1

Driven by Efficiency New heights in Sustainability

For the new GA oil-injected screw compressor range between 30 and 90 kW, sustainability is not only producing energy-efficient products, it also involves the manufacturing process, customer productivity and the environment. As a result, our customers can expect sustainable components, an integrated dryer with zero ozone depleting R410A refrigerant and the in-house designed compressor controller Elektronikon速 that allows for maximum compressor uptime. Go to our microsite to learn how this new compressor range can boost your productivity.

www.atlascopco.com/drivenbyefficiency

Atlas Copco Compressors Atlas Copco Ltd, Swallowdale Lane, Hemel Hempstead, Herts HP2 7EA Phone: 0800 181085 Fax: 01442 234791 E-mail: gba.info@uk.atlascopco.com

www.atlascopco.co.uk

20/9/12

16:3


Compressed Air

Keeping the pressure off Compressed air is integral to many manufacturing applications but must be used at the optimum pressure to achieve best return on investment, says Ben Rickards

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igher pressure can cause excessive wear without significant output increase, while wasting air and increasing energy costs. Meanwhile, too low a pressure may not do the job effectively or quickly enough. If the compressed air is stored at this higher pressure and only used at exactly the level required for the application, the storage vessel or receiver needs only to be topped up to the full capacity, which is more efficient. In order to achieve this optimum usage, the compressor usually operates between two pressure levels, with the receiver fitted with a pressure switch set to give compressor cut-off at the required storage pressure (usually the highest achievable for filtration efficiency) and a lower level usually about 10-20% lower. Excessive compressor pressure will also generate more heat, and therefore more water, which must be removed, increasing air processing costs and still supplying a system requirement at too high a pressure for no output increase.

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Cylinders rely on inlet pressure to generate the required force. If the generated air from the compressor is simply supplied directly into the mains, pressure will vary both from the compressor loading (cut-in and cut-off settings), but also as other parts of the plant demand air, creating a pressure drop in the distribution ring main. This pressure variation will result in varying force from the cylinder, impacting on process quality. The solution is a pressure reducing valve, which is designed to maintain constant outlet pressure irrespective of inlet pressure (the regulation characteristic) and irrespective of the outlet flow (flow characteristic). Correct product selection and deployment in the relevant part of the air system will help optimise energy efficiency. To work consistently within their design limits, all pressure regulators require a supply pressure at least 1 bar higher than the required outlet pressure. They will work with a lower differential but performance can be impaired. Regulators can be broadly broken into four types: general purpose; pilot operated; precision; and special purpose. A regulator that controls the pressure to a distribution main is usually of the general purpose type, or pilot-operated for large volume/ flow applications. Once it has been established whether a standard or precision regulator is needed, the suitability of the regulator flow capacity for pipe size needs must be decided. If there is no variation in the inlet pressure then the regulation characteristic of the regulator is unimportant but the flow characteristic will be. If the inlet pressure is exposed to variations then the regulation characteristics of the chosen regulator must also be considered. A variety of spring ranges are offered with most regulators.

Ideally the regulators should be operated inside the middle third of their range, since at the lower end of their range the spring loses some sensitivity and at the higher end may suffer in linearity. Low rate springs can also help reduce pressure drop, so springs can be selected to best fit system requirements. If a precision regulator is required, the level of sensitivity, flow and regulation characteristics – and if necessary, relief capacity and temperature sensitivity – must be established. Most precision regulators employ a constant bleed of air to atmosphere to aid in their response, so the penalty for employing them is a constant air demand, even under ‘no flow’ conditions, meaning an energy loss. Correct selection could see a general purpose regulator with ordinary performance characteristics fulfilling what may be considered a precision regulator’s function without system degradation at a lower installed cost and with a reduced air demand therefore more costeffectively and energy efficiently. Filter/regulators both clean the air to the application and control the pressure in one compact unit. For general purpose applications, filter/ regulators are usually more costeffective than two separate units. The filter/regulator also ensures the regulator is optimally protected. Where cylinders are supplied directly from a compressor, not only will product quality be optimised by controlling the inlet pressure for the application with a general purpose pressure regulator, but energy costs can be reduced by up to 30% by using double-acting cylinders where a reduced pressure can be achieved on the non-working return stroke. Ben Rickards is product technical manager, Norgren www.norgren.com/uk/ industrialautomation

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Compressed Air

Dairy gets the cream Atlas Copco compressors are helping Müller Dairy to reduce its heating costs

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hropshire-based Müller Dairy, part of the Müller International group best known for its range of desserts and yogurts, has made substantial savings in gas process heating costs by using Atlas Copco compressors incorporating energy recovery technology. Compressed air plays an essential role in Müller Dairy’s large-scale production operation, based at its Market Drayton manufacturing plant, where more than 600,000 litres of raw milk are processed daily. This is particularly true in the company’s yogurt and fruit process operations, where compressed air is used in supplying air cylinders, filling machine and process valves, as well as providing a sterile air barrier for end products. Müller Dairy’s compressed air installation comprises a purpose-built ZR315VSDFF oilfree compressor together with two fixed-speed ZR200s. The heat recovery capability of the two watercooled ZR200s is used in the form of recovered hot water. Working in conjunction with ammonia compressors and the yogurt and fruit processes, this hot water is used to pre-heat yogurt bases, thereby eliminating the need to generate steam and the running costs of two gas-fired boilers that used to be incurred in the process. The new compressors supplement the original Atlas Copco installation, which consists of four ZR3-58 machines. These older machines are maintained by Müller Dairy as standby compressors and employed on a rotational basis when there is a high production demand for compressed air. Compressed air users that, like Müller Dairy, integrate the flow of hot water into their plant processes are able to recover 90 to

95% of a compressor’s electrical energy input as hot water. This is achieved successfully with Atlas Copco’s ZR series of water-cooled, oil-free, 55-750 kW compressors, which have been certified by TÜV, the independent testing and accreditation organisation, as capable of recovering up to 100% of electrical input energy as hot water under specific design conditions. More than 45% of industrial applications use hot water in their process operations. The highest degree of thermal efficiency is generally obtained when a compressor’s hot water outlet is connected to a continuous heating demand, such as a heating boiler’s return circuit. With energy consumption representing more 80% of a compressor’s life-cycle cost, across a wide spectrum of manufacturing industries, energy savings in

compressed air systems have a significant impact not only towards preserving the environment through the reduction of CO2 emissions but also on the end users’ bottom line. In the Atlas Copco ZR oil-free screw compressor range with energy recovery control, the energy savings potential equates annually to 200 to 2,500 tonnes of CO2 or £35,000 to £480,000 of electricity, gas or heating oil. Because of the vital requirement within Müller’s production operations for pure, uncontaminated process air that comes in contact with the finished products, guaranteed 100% oil-free air was a mandatory feature of the installation. This requirement has been assured with the installation of Atlas Copco compressors that have been tested Class Zero and certified by TÜV, according to the ISO 85731- Class 0 standard. In Müller’s Market Drayton plant, Atlas Copco compressors were not only the solution of choice for their energy recovery potential but also helped to ensure the quality of consumer products and the reputation of the company. www.atlascopco.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

“Energy savings in compressed air systems have a significant impact on the end users’ bottom line”

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Voltage Optimisation

What is voltage management? There are many types of voltage management system available. Does it make much difference which one we choose, asks Craig Needham

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“True voltage regulation is achieved when the mains voltage is controlled not just when there is ‘over voltage’but also in ‘under voltage’ scenarios”

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n the age of energy efficiency and reduction most people are aware that voltage management in its many forms: voltage optimisation, voltage power optimisation and voltage optimisation plus regulation, can deliver valuable savings. However, too much focus has been applied to the hard sell of these products using guaranteed savings as the driver, rather than whether the product specification and technology employed is appropriate to the needs of the user. The result is, in many cases, the products supplied have failed to deliver the ‘promised’ savings and the opportunity to maximise energy savings has been missed. A good first place to start is to ask about transformers – one of the key components in all voltage management systems to help reduce and optimise the incoming voltage. But all transformers are not alike and understanding the workings of the transformer will enable the purchaser to make more of an informed decision. The key element is whether the transformer has a single tapped point or multiple taps. Why is it important to know the number of tapped points on a transformer? A single tapped point on a transformer – also known as a fixed ratio or step-down transformer – will only provide a set amount of voltage reduction with no control or real voltage management. These are typically set to save 4%, 6% or 8% – reducing the incoming voltage by this fixed ratio. Simple in design, they can deliver fixed savings but little else. More advanced voltage management systems incorporate multiple tapped points on the transformer – enabling the output voltage to be more closely controlled as the mains voltage fluctuates. This is known as voltage

Buck and boost voltage regulation incorporates two associated transformers per phase. This addresses the many shortfalls of the old fixed transformer VO equipment regulation. The greater the number of tap settings, the more control the voltage management system has over delivering an optimised and regulated voltage. This extra control increases the opportunity to reduce electricity usage and the most advanced systems enable the user to regulate the voltage to the most appropriate level for the electrical equipment on their site. Typically this is set at 220V. The majority of systems in the UK use a variation of this principle to reduce the over voltage being supplied by the National Grid. But the UK also suffers from under voltage at times and true voltage regulation is achieved when the mains voltage is controlled not just when there is ‘over voltage’ but also in ‘under voltage’ scenarios. This is known as buck and boost voltage regulation – true voltage management. Buck and boost voltage regulation incorporates two associated transformers per phase. A buck transformer for voltage reduction and regulation and a boost transformer for boost voltage regulation. In order then to identify

the transformers that can provide the greatest energy saving you need to know how many transformers there are per phase and the amount of tapped points per transformer for the real voltage regulation and control and voltage management. This intelligent technology addresses the limitations of single tap transformers – guaranteeing a consistent output voltage and ensuring the user a continuity of supply. e-fficient Energy Systems has recently introduced its latest intelligent systems using its eVO+R voltage optimisation plus regulation technology, which addresses the many shortfalls of the old fixed transformer VO equipment bringing buck and boost technology available to all. To find out whether voltage management can help you reduce your electricity usage and carbon footprint, e-fficient Energy has launched a free site survey scheme to encourage companies to see if it will work for them. Craig Needham is managing director of e-fficient Energy Systems www.e-fficientenergy.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Waitrose is feeling chipper Supermarket retailer’s wood chip-fuelled energy centre opened by minister

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Minister of State for Energy and Climate Change Greg Barker is shown around the new energy centre by Mitie’s contracts manager Jack Frost

he Minister of State for Energy and Climate Change Greg Barker opened the new wood chip-fuelled energy centre at supermarket retailer Waitrose’s store in Bracknell, Berkshire, on 24 September. The low carbon energy centre – developed by strategic outsourcing and energy services company Mitie – uses sustainable local woodchip to power, heat and cool the store. It will provide the vast majority of the store’s energy needs, making it almost completely independent of the National Grid. The energy centre will cut the store’s carbon emissions by more than 750 tonnes per year – equivalent to 1,500 transatlantic flights. It will save the store 69% of grid electricity and 84% of gas. The energy centre will also contribute £150,000 a year to the local economy in the form of jobs and the purchasing of local supplies. The woodchip supplier to Bracknell

will be able to create five additional jobs as a result of the process from the forest to delivery. It is the second energy centre developed as a partnership between Mitie and Waitrose, which will help the John Lewis Partnership – of which Waitrose is a trading division – deliver a 15% absolute reduction in operational carbon dioxideequivalent emissions from a 2010/11 baseline by 2020/21. The first energy centre, at Waitrose’s East Cowes store on the Isle of Wight, came online in March this year.

Mike Tivey, managing director of MITIE’s asset management business, which has developed and will operate the energy centre in a 12-year contract, said: “In an increasingly volatile energy market this advanced new energy centre reduces Waitrose’s reliance on the grid and provides economic and predictably priced energy. “This will create jobs and prosperity in the local economy, and is a perfect example of the many benefits on-site energy generation can provide our communities with.” www.mitie.com

an initial mobilisation phase, ready for the first tenants being operational in 2013. As well as optimising the performance of the 1.5MW combined heat and power plant at The Shard, Cofely will play a key role

in ensuring the building maintains its exceptional environmental performance and low carbon footprint, and will pro-actively evaluate energy performance throughout the London Bridge Quarter Development. The company will liaise directly with LBQ Estate management and tenants in delivering energy efficiency innovations wherever possible with a view to achieving continuous improvement. Cofely UK CEO Colin Hale commented: “We now maintain the world’s tallest building in the Burj Khalifa in Dubai, Western Europe’s tallest at The Shard and also the iconic 30 St Mary’s Axe [The Gherkin] in the City. We can put this unrivalled experience to work for the benefit of our demanding and valued customers in all of these locations.” www.cofely.co.uk

Cofely has a head for heights with Shard services

Cofely will play a key role in ensuring The Shard maintains its exceptional environmental performance and low carbon footprint

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Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Behavioural Change

Energising the workforce In the first of a new series on energy motivation and awareness techniques, Vilnis Vesma suggests that focusing on individuals is not always the right way to go

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“Encouraging discussion begins to crystallise group values, and may prove to be easier to influence than those of individuals”

ne of the first steps in any energy motivation and awareness campaign is to establish what people currently think about the subject. You need to understand your starting point and what obstacles and opportunities you face. In all but the smallest organisation, a staff survey is the natural way to proceed. However, designing an effective survey is tricky. For one thing, questionnaires quickly become bloated as more and more things occur to the authors that they could find out about: how much do people know about energy saving? How motivated are they to act on that knowledge? Do they vary by job function, age, gender, time with the company? I will confess having perpetrated (not too strong a word) questionnaires which read like examination papers and asked personal questions, which I am sure, with the benefit of hindsight, many respondents will have seen as unreasonably intrusive. If you want responses from as many people as possible, the survey has to be short, easy and impersonal. Key questions to ask I think you can get away with four questions. Here are the ones that I pose: 1. Do you think there is significant energy waste at work? 2. If so, whose job should it be to deal with it? 3. If you think it is important for the organisation to save energy, why? 4. What other aspects of your work are as important, or more important? Of course, to make the subsequent analysis manageable, you will naturally want to use multiple-choice questions. But just think: how often have you filled in

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a multiple-choice questionnaire and been frustrated because the answer you wanted to give was not one of the options? So I say you should make all the questions open-ended and let people say whatever they like. Their answers will probably be both surprising and illuminating. This leaves you with the problem of how to process all those free-text replies but the solution is to invite people to discuss the questions with their friends at work and submit group responses. That not only reduces your workload, since there will be fewer bits of paper, but it also raises the profile of the subject. It gets people taking about energy saving – which is, after all, part of what you are trying to do. It does something else as well, in that people’s attitudes are very much shaped by their friends, and their actions are unconsciously conditioned by what they think other people like themselves do. This is the phenomenon called ‘social proof’. Encouraging discussion begins to crystallise group values, and as I will explain in a later article in this series, group attitudes may prove to be easier to influence than those of individuals. The next step would be to collate and publish the survey results promptly in a half-page summary, focusing on those areas of consensus which are helpful or neutral to your campaign.

This feedback serves several purposes, one of which is that it subtly helps to align everyone’s attitudes through the socialproof effect (and of course this works on everyone who hears or sees the feedback, not just those who responded to the survey). The credibility of the feedback is enhanced because people will know that you are reporting the outcomes of discussions, not just isolated opinions voiced by enthusiasts. But do not do the survey in isolation. Have your next few steps planned out. Be ready, for example, to have people suddenly start making more energy-saving suggestions. A positive groundswell of opinion will be wasted if you cannot provide fluency in the follow-up process. I opened with the phrase ‘one of the first steps’. The staff survey itself is not the very first step. I would recommend preceding it with a measurement and verification plan for proving the savings that are achieved. In the next article I will explain more about M&V plans and then go on to elaborate on the idea of the workplace group, rather than the individual, as the unit of influence. Vilnis Vesma is a former energy manager who now works as a consultant and training provider. This series is based on his “Energising the Workforce” training workshops. He can be contacted by email at vilnis@vesma.com or call 01531 821350

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Monitoring & Targeting

Changing perceptions We now have all of the tooling in meters and software to achieve the holy grail of energy saving – changing people’s behaviour. Elcomponent’s managing director, Bill Gysin, talks us through the development of the technology, what it is able to do, and says that while it is not easy, displaying energy use is the first step

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“aM&T has allowed huge improvements in energy, and latterly carbon management to be realised”

tility meters have been with us a long time. The gas meter understandably pre-dates the electricity meter, which first appeared as a practical design in the late 1880s. Previous attempts had involved some very questionable procedures including the electrolysis of zinc sulphate, and heating alcohol to evaporate and condense it, thereby operating a fulcrum balance. The speed of both processes was proportional to the current flowing in the ‘metered’ circuit, but it is perhaps understandable that these contraptions were rendered obsolete rather quickly by the rotating disc or ‘induction’ kWh meter, a design so successful that it can still be found in thousands of dusty cupboards more than 120 years later. Even in our ‘smart meter’ world, bellows type gas meters and rotating disc electricity meters, both 19th century designs, are still providing a vast amount of data, which is subsequently used to charge us all for our energy usage. Or they would be, if the powers that be could arrange to read them every now and again. Meter requirements In fact, the requirement to read utility meters easily and cheaply has been at least as much of a spur to the development of the hardware as any search for increased accuracy or reduction in unit cost. Automatic meter reading (AMR) is the very essence of the smart meter and it is significant that particularly in the case of the electricity meter, the technology only started to change when the pressure to provide reliable AMR became overwhelming.

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AMR revolutionised the billing process for fiscal meters, and it also made sub-metering a much more powerful energy management tool than had been the case hitherto. The difference between ‘doing the rounds’ of maybe 100 submeters every week with a clipboard and pen and having 100 sets of halfhour data collected automatically was not just a matter of shoe leather, it marked a sea-change in what could be achieved simply by using meter readings effectively. Powerful tool Meters now formed part of a powerful tool within the energy manager’s armoury, and it was a tool that would become significantly more powerful as time progressed. The advent of software was the key part of that progression – initially the forerunners of today’s spreadsheets were used to make better use of meter data, but it did not take long before more focused solutions began to appear. Monitoring and targeting software has its roots in the 1980s and has been a major part of energy management as long as we have had PCs, but it was not until

Gysin: the building energy display is providing catalyst for change

2003 that automatic monitoring and targeting (aM&T) became an officially recognised ‘product’ with its own three-letter acronym to prove it. The marriage of AMR with M&T looked like it was made in heaven, and although like many marriages is has not been as easy a union as was at first anticipated, it is now the norm to find half-hourly sub-meter readings as a key data source in most M&T systems. Huge improvements aM&T has allowed huge improvements in energy, and latterly carbon management to be realised. Sophisticated analysis of usage drivers (output, occupancy, temperature etc) in conjunction with fine-grained usage data has been a key element in the mission to reduce cost as well as consumption, although let us not forget that there is still a lot to be said for a half-hour bar chart, a Mk 1 eyeball and an agile mind. Other technologies have been hugely important, of course, along with legislation-driven improvements to the fabric of our buildings and the gradual elimination of luminaires that deliver rather more heat than light to our environment. There is, however, one area of energy management that is still very much work in progress, and it is not an easy one to address. The big challenge now is to engage us all in the project. Our behaviour makes a difference to the carbon performance of the home we live in, the business we work in. How we choose to do our shopping or travel to work, where we go on holiday and what we eat for breakfast all make a difference!

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Monitoring & Targeting Caption

Elcomponent’s MeterRing RT offers a visually compelling indication of power required and consumption Holidays and breakfast are possibly beyond the scope of this article but how we behave at home and in the workplace is not. In both environments the building energy display is providing the catalyst for behavioural change. Small ‘traffic light’ units have been available for home use for a while, and when the domestic smart meter roll out finally happens, a more sophisticated in-home display will be a key element. Behavioural change For the workplace, though, the sophisticated display is already a reality. Changing our behaviour can be very easy, but is usually very hard. It depends on the tools that are available, and if these include physical or financial pain results are guaranteed. However, where energy management is concerned the former is generally not available, and the latter is the preserve of government departments. More subtle forms of persuasion are required. The workforce of any organisation, be it commercial, industrial, public or private sector can have a significant positive impact on energy consumption, but persuading it to do so is a challenge indeed. The simplest of inducements have an effect for a short time when

their impact is fresh – a ‘Please turn the lights out’ sticker on the light switch being perhaps the most obvious example – but maintaining stakeholder involvement and keeping hold of any savings achieved is much more difficult, and perhaps unsurprisingly, it brings us back to meters. As far as metering is concerned, building energy displays are the new rock ’n’ roll. Eye-catching graphics are combined with ‘power now’ dashboards, performance comparisons and real-time messaging functions to create a powerful new ally in the battle for hearts and minds and a smaller carbon footprint. Elcomponent’s new ‘MeterRing RT’ is a good example. Key meters are read automatically by a local software application, and the resulting values are factored, aggregated and otherwise manipulated to create energy and carbon equivalents before being transferred to a web server and the internet-based realtime display. Unlike aM&T software, which is designed for professional use and balances function and form accordingly, a successful Building Energy Display is an exercise in graphic design as well as an information provider – for two good reasons. First and foremost, its audience

is an invited one and has a limited time window in which to view it, and secondly, it has to fit seamlessly into some of the most expensive and well-designed corporate environments in the world. The result is a visually compelling indication of the power required to run the building, and an historical presentation of energy consumption. Being web-based, the display can be repeated throughout the building and beyond, but when it is located in a high traffic area, the workforce rapidly learns the ‘power signature’ of the building, increasing awareness and fostering a desire to contribute to an overall improvement in performance.

“Eye-catching graphics are combined with ‘power now’ dashboards, performance comparisons and real-time messaging functions”

Maintaining interest The dynamic nature of the display ensures that interest is maintained, and business-wide initiatives to reduce consumption have a readymade performance indicator that is available to all. The impact of Building energy displays is proven, but it’s early days. Their potential may be greater than we think, and not just in buildings. Interest from manufacturing sites for a ‘process display’ suggests that the concept is equally valid in a variety of environments. www.elcomponent.co.uk/site/ content/view/page-33.html www.elcomponent.co.uk/rt.php

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

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Environmental Certification

Certified benefits Martin Hockaday, environmental sector manager at certification body NQA, considers the cost implications of attaining environmental certification

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“Preparing for certification provides a timescale and a goal that demands attention”

ince the first internationally recognised environmental management system (ISO 14001) was introduced in 1996, there has been an increasing focus on the environmental impact of business and industry. This summer, NQA surveyed 100 organisations holding the standard to find out what the impact on their business has been. We particularly wanted to find out if the processes put in place to achieve certification provided a cost saving for the organisation. It was hugely encouraging to see that 80% of respondents replied that cost saving was one of the key benefits. Significantly, 88% of those organisations are confident that the improvements put in place will produce a net financial benefit, with the majority stating that the whole certification process will pay for itself in one year or less. This is particularly encouraging as cost savings are not always the primary motivation for organisations seeking certification but a concern over incurring cost can be a deterrent. Positive contribution With more than 2,500 certificates currently in issue in the UK alone, NQA is in a good position to reflect on the positive contribution that the certification process itself can make. A key benefit is simply one of focus. Preparing for certification provides a timescale and a goal that demands attention. The standard requires evidence of continual improvement, so the planning stages are naturally likely to include some target setting. Involving as many staff as possible in the initial stages and demonstrating the effect of hitting the target can be hugely motivating. Nairn’s Oatcakes is a good example of how this can work. At the start of the process towards certification to ISO 14001, the

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Nairn’s Oatcakes and Edinburgh Zoo both set objectives to reduce energy consumption organisation set two key objectives: to reduce energy consumption by 5%; and reduce waste to landfill by 15%. The journey to achieving these results was characterised by engagement. The organisation set out to consult as widely as possible across its workforce, asking for suggestions and activities that could be introduced to support the targets. Services manager Russell Clink succinctly expresses the advantages of consultation: “You have to get staff to buy in to the process or it will fail.” Nairn’s is typical in the number of relatively small operational changes that steadily, day by day, accumulate to produce significant results. Nairn’s lead auditor Bill Bolan considers the impact of introducing detailed measurement: “Initiating an environmental management plan means that we are measuring energy consumption properly and are therefore able to make informed decisions about where we can make savings. One result of this measurement was to show that maximising the efficiency of the factory lighting – introducing better controls and replacing all the factory lighting with T5 lamps – was enough to reach the target.” Initiating repeated small changes in behaviour is essential.

Stuart Jenkinson, safety, health and environmental manager at Edinburgh Zoo (ISO 14001), believes real savings could only be achieved when “the environmental objectives became absolutely embedded in people’s day to day job function”. Edinburgh Zoo set itself the target last year of reducing its energy consumption by 5%. “The detailed measuring processes allow us to monitor very accurately the energy consumed throughout all the areas within the zoo and see the impact of every action taken to reduce it,” Jenkinson says. This level of efficiency can only be achieved if every individual becomes conscious of their daily actions and how they contribute to the overall goal. Cost savings are typically most dramatic at the outset. Straightforward changes are implemented and a wave of enthusiasm will carry an organisation to achieve a clearly defined goal. The difficult part is to sustain the improvement over the longer term. Annual audits are therefore an essential element of the certification process, ensuring that organisations keep on track and that plans and processes are regularly refreshed. www.nqa.co.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Water Management

Missing piece in the jigsaw Water reduction can save energy as well as well as reducing water bills, so why is it not included in the Green Deal, asks Jacob Tompkins

T

“Installing waterefficient taps, showerheads and pressure reduction valves can dramatically cut water waste and save hundreds in energy bills”

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he government’s muchvaunted Green Deal has now been launched. I am sure you are all aware of it. It is, effectively, a green spendto-save loan for energy efficiency improvements for homeowners and businesses in Great Britain (with an additional add-on scheme in Scotland). It is underpinned by the ‘golden rule’ that any energy saving measures that are installed must be cost-effective so homeowners get back the money they have invested within the timeframe of the deal. Clearly this is a good idea but given the current economic climate there are concerns that there might not be that many takers for a loan that sits with the house rather than the householder. Cashback offer Therefore the government has employed supermarket-style marketing with a £125m cashback offer distributed among the first households to sign up. From 28 January 2013, households that use the Green Deal to make improvements such as loft insulation, solid wall insulation and replacement windows will qualify. The Green Deal Cashback Scheme is a first-come, first-served offer, and the more work households have done, the more cashback they could receive. They hope that this will kickstart the scheme ensuring Green Deal providers, trainers and financiers have a market in which to operate. The government believes that once the support infrastructure is in place the market will use different products and schemes to promote what is ultimately a good deal. In these days of austerity, £125m from government is a lot so it is likely that it will ensure the Green Deal has some initial take-up. At the same time, the government has pledged

£3.5m for the training of 2,000 Green Deal assessors. However, from a water viewpoint there is still a piece of the jigsaw missing. Heating water accounts for a quarter of household energy bills and in businesses it can be even higher, especially where steam is used. Measures such as installing water-efficient taps, showerheads and pressure reduction valves can dramatically cut water waste and save hundreds in energy bills per year. Retrofit savings Waterwise has calculated that adding a simple household water retrofit to the Green Deal would cost less than £100 per house (and you could also throw in cold water savings for that price). This is compared with thousands of pounds for energy measures such as solid wall insulation. Water efficiency is also fairly universal in its application, so it is a good way to reach ‘hard to treat’ homes. Obviously saving water has the added benefit of cutting water bills for business and for metered households and has an environmental dividend in addressing water scarcity. So water saving offers a quick, easy and cheap way to make energy savings, with added environmental benefits

to boot, but this still has not been fully recognised by the Department of Energy and Climate Change. The water companies have staff on the ground visiting households and businesses many are also rolling out water efficiency programmes and are seen as trusted and competent, but they have not been engaged in the formal Green Deal process (not for want of trying). Waterwise and the Energy Saving Trust have undertaken a piece of work looking at how water companies could work in conjunction with the Green Deal and the potential is enormous but so far untapped. At the same time Waterwise has worked with CABWI (the water industry training body) and the water industry to develop water efficiency advice and retrofit qualifications that are compatible with the Green Deal. So everything is in place for the water industry to participate, we are just waiting for the call. A free water audit and retrofit could also act as a good entry point for households and businesses to learn about and access the Green Deal and it would be a lot cheaper than a £125m sweetener. Jacob Tompkins is managing director of Waterwise www.waterwise.org.uk

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Water Management

Demand to outstrip supply Study reveals wasteful consumer behaviour is barrier to meeting future demand

A

ll the water that will ever be is right now.” This simple statement, from National Geographic in 1993, underscores an increasingly pressing challenge – supplying seven billion people, with a further one billion expected by 2030, with water from what is an absolutely finite supply. Furthermore, the less than 1% of the world’s total supply of water that is freshwater is being badly managed, with a growing proportion wasted through despoiling and pollution. Looking ahead, ongoing urbanisation, uncertainty over climate change and a growing middle class are all adding to the pressures. So how concerned are water utilities about such potential shortfalls, or mismatches in supply and demand, between now and 2030? What are the major obstacles hindering their progress towards increased water efficiency? Do they have the necessary technologies and strategies available to meet these concerns? And how well are

Research highlights n Increased water stress by 2030: Due to growing demand for water, caused by increasing populations, changing climate patterns and wasteful consumer behaviour, 39% of executives surveyed believe that the risk of national water demand outstripping supply by 2030 is “highly likely”. Failure to address this could result in significant economic, social and health implications. n Barriers to conservation: 45% of utilities – especially in developed markets – see wasteful consumer behaviour as their biggest barrier to progress, while another 33% believe tariffs are too low to stimulate greater investment. In developing countries, a lack of capital for investment tops the list (41%), while worries over climate change stand third overall (34%). n Encouraging consumer engagement: Half of respondents (49%) believe pricing structures need to be changed to encourage

Smith: says action is required from every stakeholder they managing the risks? These are the core questions a report conducted by the Economist Intelligence Unit considers based on a survey of 244 senior water utility executives across 10 key markets. Six of these markets are developed countries (the US, Canada, UK, Spain, France and Australia), while a further four are rapidly developing (the BRICs: Brazil, Russia, India and China). Research released from Oracle Utilities reveals that four in 10 (39%) senior executives from water utilities conservation, while less than four in 10 water utilities think water prices must be held down to ensure fair access to water for all (38%). It is critical for water utilities to engage with consumers. n Increased investment: Almost all respondents stated that they are increasing investment to meet supply challenges (93%). n Innovative industry: The water sector is becoming an increasingly prominent innovator, due to the implementation technologies such as smart meters and desalination solutions. For instance, one fifth of water utilities in developed markets regularly evaluate new technologies, compared to a third of developing countries. However, more water utilities must improve their ability to identify and implement such advances. n Stumbling blocks: Drought and increased water pollution are seen by respondents as the biggest risks faced by water utilities, and are considered the most likely to occur.

believe the risk of national water demand outstripping supply as “highly likely,” or essentially certain, outlining the need for a significant shift change in the management and production of water supplies. The report, Water for All?, found that wasteful consumer behaviour is seen as the biggest barrier to meeting future demands (45%). A third of respondents also stated that worries over climate change (34%) and low tariffs, which fail to stimulate greater investment (33%), are significant barriers. The need to address these challenges is prompting innovation in the water sector. Water utilities in developed and developing nations are deploying technology enabling greater efficiency, such as desalination technology, network sensors and smart meters. Oracle Utilities senior vicepresident and general manager Rodger Smith says: “From the ‘Water for All?’ report findings, it is clear that maintaining adequate water supplies will require actions from every stakeholder including customers, governments, environmental groups, regulators and utilities themselves. Communication and comprehensive consumer education will be critical to success.” Economist Intelligence Unit senior editor Brian Gardner says: “The threat of water scarcity is not an insurmountable challenge, but to overcome it, water utilities will need to make much more productive use of water available and better educate their customers about its value. Fortunately there are innovations in technology and process being implemented in both developing and developed nations to help make this a reality. We need to see water utilities, governments and consumers all contribute more to address these concerns in the coming years.” www.oracle.com/goto/utilities

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

“The threat of water scarcity is not an insurmountable challenge, but to overcome it, water utilities will need to make much more productive use of water available”

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Water Management

Money down the drain? Gerardine Coyne reports from the Energy Event about the financial implications for industry that will make water efficiency increasingly a priority

N “Ofwat is based on price, and sustainability is a secondary objective. Society needs to change markedly, and I would say it’s going to be led by industry”

obody is interested in water but that is about to change for one simple reason – money. “Water is used massively in energy but the climate is changing and within 10 to 15 years all of our water tables will be under stress,” comments Lord Redesdale, chairman of the Anaerobic Digestion and Biogas Association, the Carbon Management Association and the Energy Managers Association. He says: “In London, the population density in relation to rainfall means we have less water per head than Saudi Arabia, yet we have a system that gives no value to water. “Ofwat is based on price, and sustainability is a secondary objective. Society needs to change markedly, and I would say it’s going to be led by industry. “There is also a carbon cost to water. 1kW electricity is needed to get one cubic metre of water to the

The business sector accounts for one third of total water usage in the UK Source: Ryan Miller, Waterwise

taps, and another 1kW is needed to process it on its way out.” The future According to Lord Redesdale, the future “is starting to see water and energy as a bottom line that needs to be controlled as it goes up year on year”. He adds: “Water efficiency in companies will be led by finance directors not as part of CSR – that’s greenwash – it will happen because of economics. I don’t believe

Case study

Once company that has achieve big savings in its water bills is supermarket giant Asda. Procurement manager David Olivant explains how these reductions were achieved. “In Scotland, our average water cost per cubic metre was £8.36 – approximately £5 of this was on surface water drainage. As this is based on rateable value, there’s very little you can do.” Comparable costs : Northern Ireland Wales

Per cubic Surface water metre (£) drainage charge (£) 2.71 0.14 2.75 -

Source: Asda

“We were spending more than £4m on surface water drainage costs, so we outsourced this. Now we have water coming in to Scotland, water out in Ireland and do our surface drainage in Wales. This has reduced our water costs to £1.72 per cubic metre.” Strategies n We charge individual stores for the actual cost of water – formerly we had a big budget ‘pot’, so no one reported

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behavioral change will take long once the object of the regulator is changed but, also, sustainability is already happening. “I would be surprised if within five years we haven’t seen major changes. If you know water is going to be more expensive you will invest in change. It will be an integral part of buildings. They will not be rentable if energy performance certificates are low and water and energy costs are high.”

inefficiencies. Now there is a bottom-up demand for maintenance . n We manage surface water drainage in the design phase – our Scottish stores have sustainable, urban drainage. n We measure our sites as councils get it wrong. n We put drainage sites into our sites as it reduces the area charged. n Tendering – we tendered out Scotland to water companies. n Communication – we built up relations with water . companies. Now they talk to us when there’s a problem. n Educate your colleagues – don’t leave a dripping tap. n Maintenance – get it fixed. n Take ownership of utilities. Solutions n Billing – our bills are so complicated we have to employ someone to decipher them. We want consolidation; one bill for all sites. n We want competition between providers, so we want the muzzle taken off Ofwat. Water is not a commodity, it is a precious resource.

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


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Water Management Products

Evac offers compact treatment and recycling solution The Evac membrane bio-reactor (MBR) is a compact and reliable packaged plant for wastewater treatment and reuse. It can treat black water, greywater or all domestic wastewater in residential or nonresidential buildings such as visitor centres, hotels or shopping centres. Evac MBR uses an intensive biological and ultra-filtration processes. The packaged wastewater treatment plant is composed of an equalising tank to buffer influent flow and quality, an aeration tank for biological process and submerged ultra-filtration membranes. Evac MBR provides an extensive removal of contaminants allowing various water recycling applications including landscaping, toilet flushing and car washing. It removes more than 99% of bacteria, ammonia, solids and organics. The standard flow capacity ranges between 1.5 and 111 m³/day corresponding to 10-700 population equivalents. Above this value Evac provides tailor made design. For the same flow, the Evac MBR is up to five times more compact and has up to six times less contaminants content in the effluent than other biological treatments. Evac’s robustness has been proven against extreme conditions, from offshore platforms to the top of the Mont Blanc refuge. www.evac.org.uk

Alfa Laval reduces sludge volume by as much as 90% The Aldrum G3 drum thickener is a new member of the Aldrum range of mechanical sludge thickeners supplied by Alfa Laval. It makes it possible to achieve improved benchmarks in both industrial and public-sector sludge thickening capabilities, including reductions in sludge volume amounting to as much as 90%. This paves the way to dramatic savings on sludge handling, transportation and storage costs. The design makes it possible to increase solids load capacity by as much as 30% within the same footprint as the standard Aldrum unit. The new feed zone provides extraordinary gentle treatment of the sludge, resulting in less need for

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costly polymers and ensuring exceptionally high recovery rates for most types of sludge. The unit has better performance and lower energy consumption, resulting in lower operating costs than ever before. Patented Alfa Laval Power Plates also effectively reduce the power consumption of ALDEC G3 decanter centrifuges, making a big contribution to cost savings. www.alfalaval.com

Dairy thinks Severn Trent Costain is cream of the crop

UK dairy First Milk is to become the first business customer to switch water supplier since the Department for Environment, Food and Rural Affairs altered the regulations to allow more businesses to be able to choose their water supplier. The threshold has now been reduced from 50 to 5 megalitres of water which has substantially increased the number of businesses able to choose their water supplier from just 2,200 to 26,000.

Severn Trent Costain has signed up First Milk in a deal that will see STC supply, manage and monitor its water across six major sites in England, Wales and Scotland involving more than 600 million litres of water per year. The contract underlines Severn Trent Costain’s focus on providing customers with the benefits of water competition as the water retail market moves to full opening in 2017. www.severntrentcostain.com

BASF turns to NOV Mono for maintenance that’s ‘EZ’ BASF has installed four EZstrip maintain-in-place progressing cavity (PC) pumps from NOV Mono, Europe’s leading designer and manufacturer of pumps, parts, Munchers, screens and packaged systems. In a bid to improve process efficiency and reduce downtime at its site in Bradford, UK, BASF turned to NOV Mono for a solution. “Our existing pumps, which transfer a range of varying viscosity products, were often difficult and time-consuming to maintain,” said a BASF spokesman. “Thanks to Mono’s EZstrip, we are able to fully strip down and maintain the PC pump, in situ and within just 30 minutes. This was a massive reduction in time and it has, in turn, resulted in significant cost savings.” The chamber of the EZstrip pump has a two-piece design that can be opened in less than one minute. The suction chamber and rotating parts can then be unblocked, and the chamber reassembled with a spanner and an allen key. The whole operation can take less than two and a half minutes, depending on the severity of the blockage. The EZstrip pump can be installed into new plants or retrofitted into existing NOV Mono Compact C installations. No electrical disconnection is required, and suction and discharge pipes remain untouched. www.mono-pumps.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


Viewpoint

A fad or the future? A report commissioned by Schneider Electric highlights that even voluntary schemes such as BREEAM are resonating with businesses keen to demonstrate their environmental commitments, writes Eddie Coxon

T

he Building Research Establishment Assessment Method has grown in popularity, last year assessing 7,000 projects. However, the report clearly shows that to achieve an efficient and scrupulously financed project, businesses must consider BREEAM early on in the design process and work with experienced professionals who know the ropes. Demonstrating the support for BREEAM, 88% of companies that have participated in the scheme said it is a well appreciated process having a positive impact on their business, with 96% saying they would use it again. Why opt for BREEAM? While cost is often a deciding factor when it comes to voluntary participation in a scheme or initiative, the main reasons for organisations opting for BREEAM included company policy and to boost CSR credentials (47%), to meet planning requirements (33%) and for procurement purposes (16%). Despite the ongoing media furore surrounding energy prices and the financial squeeze felt by many businesses, counting the cost of BREEAM does not rank highly on their agenda. Of the organisations that considered BREEAM a benefit, 94% rated social benefits as being the greatest bonus, followed by environmental (76%) then economic (67%). However, many of the social and environmental benefits also have a positive financial impact. Acknowledging the importance of not losing sight of a building’s performance after construction, businesses also rated improved comfort and satisfaction for occupants, enhanced productivity and staff retention as internal social benefits. Respondents also identified that including BREEAM early on in

the process and engaging with all parties to maintain dialogue ensured the project succeeded beyond the initial construction. Further demonstrating the longevity of BREEAM and the investment businesses are prepared to make in their green buildings, the report examined the extent to which BREEAM influences different areas of the project. For example, it appears to have relatively little effect on the location and orientation of the building but an important impact on technological issues. These include the use of intelligent controls, which were influenced by BREEAM for 61% of respondents, the selection of building services rated by 63%, and the facilities provided for staff expressed by 61%. Schneider Electric vice-president of buildings UK & Ireland Eddie Coxon comments: “The findings of this report clearly show there is an appetite from businesses for guidance on green practices. While government may introduce policies and targets, more support mechanisms need to be in place to help organisations respond to the green agenda. What’s interesting is the mindset of companies which aren’t necessarily striving for BREEAM

accreditation just for financial gain, they can clearly see the wider scope of possibilities. “One of the strongest elements about BREEAM identified here is that every building can benefit from controls and technologies which deliver long-term benefits; whereas not all can achieve ratings for the building’s location or position, which can often be outside of the business’ control. However organisations also need to be aware of degradation of efficiencies – energy-efficient solutions can actually become less efficient and effective over time if there is no-one to manage and monitor them. This is perhaps where more consideration needs to be put into BREEAM as accredited buildings are then not continually assessed to ensure they maintain their rating.” Driving innovation At a time when it is doom and gloom overall for the construction industry, BREEAM is encouraging the industry to push innovation forward. Nearly nine out of 10 (87%) of respondents said BREEAM drives investment in innovative techniques and technologies. Top of the innovation list was renewable energy (68%), followed by natural ventilation (56%), materials (53%) and metering (48%). All businesses said that they had installed building technologies and active energy management in their latest project, but less than a third did this solely for gaining credits. For the majority (51%) it was for both operational savings and gaining credits – a clear sign that organisations think beyond the initial BREEAM accreditation process to how they will use the building in the longer term. Eddie Coxon is vice-president of buildings UK and Ireland, Schneider Electric www.schneider-electric.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

“The findings of this report clearly show there is an appetite from businesses for guidance on green practices”

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For more information visit www.abc.org.uk or email info@abc.org.uk


Products

New electro-dynamic voltage optimisation system EMSc (UK)’s HV MAX is a low-loss amorphous core HV transformer with the award-winning Powerstar Voltage Optimisation combined that allows for 11,000V input and electronically regulated 380V (or user regulated) output. The innovative product will allow companies to save costs and reduce carbon emissions in both the highvoltage as well as the low voltage areas. Speaking about EMSc (UK), managing director Dr Alex Mardapittas (pictured) said: “Older transformers have high levels of standing losses and the majority of modern transformers used on commercial sites use cold rolled grain oriented steel within their core, which result in significant losses for buildings in comparison to amorphous steel. Powerstar HV MAX can be used to replace older transformers on existing sites, or be included in new-build projects in order to provide the optimum voltage output for the site.” http://ems-uk.org

ABB drives £24,000-a-year saving on energy costs A manufacturer of plastic automotive fuel tanks is saving £24,000 a year on its energy bill following the installation of ABB variable-speed drives. TI Automotive of Flint in north Wales makes 180,000 high density polyethylene (HDPE) plastic fuel tanks a year for global automakers. The plant uses a large amount of compressed air. Central Group installed a 75kW ABB standard drive on the air compressor, which had previously been a fixed speed unit. Running the motor at half speed, the ABB standard drive reduced consumption from 75kW to 45kW,

giving a saving of about 35%. Another application is the pumps used for the main factory chilled water circuit. The chilled water is used to cool the mould tools, extruder feed zones and gearboxes, as well as the mould hydraulics and electrical panels. Installing 11kW ABB standard drives on the three pumps produced a 30% saving, cutting power demand from 11kW to 7kW. The third application to be improved was the granulator, which chops up waste HDPE trimmed from the finished fuel tanks for reuse in the blow moulders. Also in production 24 hours a day, the granulator is only actually working for 10 seconds out of each minute. Running the granulator motor at the same fixed speed, the ABB industrial drive reduced the motor’s power consumption from 42kW to only 15kW, a saving of 27kW, a 65% reduction. www.abb.co.uk/energy

Up at The O2 attraction benefits from Tritec technology

‘Up at The O2’ in Greenwich enables visitors to walk over The O2 and admire the dramatic views from the top of this iconic building. To help minimise the energy and environmental costs of the project, the contractor (ISG) requested tenders for a roof-top photovoltaic power installation. With a bid proposing the use of technology supplied by Tritec, the contract was awarded to Rayotec. The TRI-STAND insertion system is able to have the installation of all popular framed solar modules. After the insertion of the modules into the aluminium profile, the modules are held in place by their own weight and friction (the photovoltaic modules do not need to be screwed in). Tritec also supplied two threephase Kaco photovoltaic inverters. The total size of installation was

approx 22.75kW spread over two flat roof entrance lobbies on the south and north side of the dome structure. In financial terms, using an average electricity cost of 12p per unit, the offset costs equate to about £1,200 per year for the south installation and £1,020 for the north. The arena also expects to save a further £2,800 a year from the government’s Feed-In Tariffs. “The project anticipates return on investment in seven to eight years, but because the installation is helping to generate a new revenue stream for the venue, it will be shorter in reality,” says Alex Lenihan, senior project engineer at Rayotec (pictured). “Other contributory factors include low running costs, virtual maintenance-free operation, and life expectancy in excess of 25 years.” www.tritec-energy.com/uk

AxFlow introduces heavy-duty self-priming pump AxFlow UK has announced the Wemco WSP selfpriming pump, a heavy-duty pump that is equally at ease with clean and solids laden liquids. With a differential head capability ranging from 3 to 42m the Wemco WSP is available in port sizes ranging between 50mm (2”) and 250mm (10”), and can deliver flowrates from 10 to 700m³/h. Self-priming pumps are ideally suited to any duty with a suction lift where ease of access to the pump is necessary for maintenance purposes. Whereas submersible pumps have the benefit of being primed by the liquid in which they are submerged, access can be difficult when maintenance is required. www.axflow.com

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com

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Product & Services Directory AIR CONDITIONING

Product & Services Directory Contact: Steve Swaine Tel: 020 7728 4958

BOILERS

BOILERS

ENERGY METERING & MONITORING SYSTEMS

INDUSTRIAL BOILER SALES & HIRE

NOBODY KNOWS DAIKIN BETTER > The UK’s only independent distributor of Daikin > Comprehensive customer services > VRV / Applied systems > Wide range of accessories T: 01483 504 883 E: info@spaceair.co.uk www.spaceair.co.uk

• Steam Boilers 150-15,880Kg/hr • Hot Water Boilers 30-8000kW/hr • Pressures 7bar-17bar • Oil, Gas or dual fuel

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Water, Energy & Environment • www.energy-online.net


Product & Services Directory

Product & Services Directory Contact: Steve Swaine Tel: 020 7728 4958

ENERGY MANAGEMENT SOFTWARE

FLOWMETERS

MAGNETIC CONDITIONING

PUMPS

Magnatech Fuel Conditioning Ltd

Guaranteed Fuel Reduction!

Or your money back! Pay back normally within 10 months No lines cut, no break in production A fit and forget technology. Works on any hydrocarbon gas or liquid. Contact us for a free site survey info@magnatech.org.uk www.magnatechfuel.co.uk 08701 66 24 37 or 07870 185730

MAINTENANCE MANAGEMENT SYSTEMS Multi-tool maintenance solutions

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• Fully feature systems start from only £1,490 Visit www.cayman.co.uk or call today to find out more Tel: 0191 296 3816 • Fax: 0191 296 3856 info@cayman.co.uk • www.cayman.co.uk

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Water, Energy & Environment

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Q&A

Q&A: Nick Lewis npower industrial and commercial markets’ new connections sales team manager wants to travel back to the 1960s and have the power to stop time

“Energy users should equip themselves with the best tools to prepare themselves for whatever’s around the corner in the energy market”

Y

ou’re God for the day. What’s the first thing you do? Have breakfast. If you could travel back in time, what would it be? I’d like to go back to the 1960s, to see whether my parents are right that it was the best decade to grow up in. Who or what are you enjoying listening to? I am a big fan of Danny Baker and have recently started to enjoy the Radio 1 breakfast show after Chris Moyles’ exit, although I hardly think I’m part of the demographic they are looking for. What would you take to a desert island and why? iPad, sun cream and a fully stocked bar. What’s your favourite film (or book)? I’d have to say Dog Day Afternoon. It’s classic Pacino. What would your super power be? To be able to stop time – there are never enough hours in the day

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to both work and enjoy evenings at home. What would you do with a million pounds? I’d definitely want to spend it very quickly on myself and family. What’s your greatest extravagance? I like to indulge in holidays, and am currently planning to take my young family on a trip to Disneyland. If you were blessed with any talent, what would your dream job be and why? Not that my partner would necessarily agree, but I would like to think I had a good singing voice and then be able to inflict it on everyone as a professional singer. If not that, then Id like to be an artist. What is the best piece of advice you’ve ever been given? To be ambitious and to challenge myself. What irritates you the most in life? Lateness – especially at home.

What should the energy users be doing to help itself in the current climate? Energy users should equip themselves with the best tools to prepare themselves for whatever’s around the corner in the energy market. Most suppliers will give free advice to help ensure you’re using the right tools for your business. npower even offers free services, such as PriceWatch, which alerts you to when the purchase price for your energy meets a pre-agreed point. What’s the best thing – work wise – that you did recently? I’m really proud of our work to improve the new connections process for customers. We have worked with the National Federation of Builders to promote the need for greater communication between all parties involved and it has been a really interesting and successful journey so far.

Water, Energy & Environment • October/November 2012 • www.theenergyevent.com


In 2012 we welcomed 150 exhibitors, 70 speakers and over 6000 visitors making the Energy Event the UK’s largest show dedicated to energy efficiency, management and procurement. We thank all of you who supported the show and look forward to seeing you again in 2013. Be part of the big event in 2013. Contact sales@theenergyevent.com +44 (0)207 728 4958

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Water Energy & Environment  

October/November 2012

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