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The UK Energy Market in 2011

The energy market, for users and decision-makers, has been transformed in the last two years and we are now set on course to see a revolution in terms of how we produce energy, how we manage it and how we pay for it. Larger, commercial customers will be forced to pay for certain initiatives and will be rewarded to fund renewables. Legislation is now in place to fundamentally change our behaviour in terms of both the supply and the consumption of energy. The Carbon Reduction Commitment (CRC) initiative is the main stick that all companies and property owners will have to face up to in the next few years and, on the other side of the coin, there are new incentive schemes to encourage and financially reward moves to microgeneration and improved energy efficiency: Feed-In Tariffs (FiTs), Renewable Heat Initiative (RHI), Green Deal and Tax Allowances. The consultation on the Microgeneration Strategy concentrated on two key areas for development: i) Quality: ensure consumers have confidence that equipment and installation is reliable and adheres to the highest standards; ii) Technology: examine how to grow the industry by improving products, using existing intelligence and more trialling of technologies new to the UK.                     • A quarter of the UK’s existing generation capacity will need replacing by 2020, as many nuclear and coal plants reach the end of their lives - that’s 19GW or around 20 large power stations. Some new gas-fired power stations will be needed to complement renewable. • About 30% of our electricity must come from renewables by 2020, up from 7% today, to meet our contribution to Europe’s target on renewable energy. This will not be easy. The Green Deal, due to start in 2012, is the Government’s new way of enabling private companies to make energy efficiency available to all at no upfront cost. The work to upgrade the property will be paid back from the saving on energy bills. The energy roadmap is difficult to read and even more difficult to navigate. UK Energy Partners’ role is to serve as your energy management partner; to reduce your costs and improve consumption efficiency.


UKEP – one provider for all your energy services

UK Energy Partners is a new company, established to provide businesses and organisations with a full energy management service – from consultancy to integration, engineering and billing – in all facets of efficiency and supply but with a focus on renewable energy. The renewable energy area in its current guise is very new and the intention has been to form a market leading organisation where best in class professionals within individual specialist fields can operate under a single umbrella. UKEP has assembled specialist expertise across the range of new and traditional energy services, so we can dispense advice which is informed and right for our customers. We work on behalf of our clients and it is thereby essential that we serve as an independent advisor across the full spectrum of available products and services – taking the holistic view – to deliver guidance and proposals that are fit for purpose. We want to be clients’ long term partners and we will not be driven by short term gain. Our stated aim is to help companies and organisations reduce the cost of energy, reduce the cost of managing energy, reduce carbon dependency and improve energy efficiency. UKEP will handle all aspects of this work on behalf of clients, with a focus on the quality of project management, customer service and management information. If this all sounds unfamiliar to those who know the energy sector then so it should: the market is changing in front of us and we have to adapt accordingly.


This is what we do

Our stated aim is to help companies and organisations reduce the cost of energy, reduce the cost of managing energy, reduce carbon dependency and improve energy efficiency. UKEP will handle all aspects of this work on behalf of clients, with a focus on the quality of project management, customer service and management information. If this all sounds unfamiliar to those who know the energy sector then so it should: the market is changing in front of us and we have to adapt accordingly. UKEP has assembled specialist expertise across the range of new and traditional energy services, so we can dispense advice which is informed and right for our customers. We work on behalf of our clients and it is thereby essential that we serve as an independent advisor across the full spectrum of available products and services – taking the holistic view – to deliver guidance and proposals that are fit for purpose. We want to be clients’ long term partners and we will not be driven by short term gain.        • • • • • • • •


 – audits, surveys, feasibility studies, proposals.  – including Display Energy Certificates (DECs), Energy Performance Certifica tes (EPCs) and Heating, Ventilation and Air Conditioning Certificates (HVACs).    – sub metering and energy management systems.      .   – Solar; Wind; Bio mass; Heat pumps; Anaerobic Digestion; Hydro.    – notably to understand and advise on new initiatives, eg, Feed-In Tariffs (FITs), Carbon Reduction Commitment (CRC), Renewable Heat Initiative (RHI).    – to advise on grants and broker funding for new schemes.   – to broker and bill traditional gas and energy supply.

UK Energy Partners Customer Energy Checklist Compliance & Certification Audit & Advisory Energy & Efficiency Procurement Microgeneration Funding

Compliance & Certification

Energy efficiency

• • • • • • •

• • • • • • • • •

Certification required Regulatory changes which may impact Current certification and registration Environmental Assessment Energy Performance Certificate (EPC) Display Energy Certificate (DEC) Heating Ventilation and Air conditioning Certificates (HVAC) CRC

Surveys & audit Billing accuracy Metering Information Management Lighting Management resources Boilers & Insulation Design Voltage Optimisation



• • • • • • • •

Feasibility Economics Solar PV/Thermal Heat Pumps Biomass Anaerobic Digestion Wind Hydro

• • • •

Understanding of current charges and usage data Contract status Supplier selection Benchmarking Negotiation

Audit & Advisory


• •

• • • • •

• •

Energy Policy Number of buildings, locations, fabric, ownership Audit of current costs Feasibilit

Options Self fund UKEP Carbon Trust Other


Audit & Advisory

Energy is not your core business but it is ours. At UKEP we understand that many organisations need flexible support and advice to meet needs in respect of energy matters, as and when they arise. That’s why we offer a full range of advisory services: from drafting your entire energy strategy to more specific; project-based analysis designed to help you identify best practices; we identify opportunities to improve your energy efficiency; and ultimately we help you save costs. •     - this is now a Boardroom issue. UKEP will interpret market trends, low-carbon legislation, cost-saving measures and demonstrate where there are opportunities for use of renewable technologies. Our report is the dynamic response you need to the highly fluid and politically-charged energy market •   - UKEP ensures you only pay for the energy you use. We handle your complex energy invoices, identify inconsistencies, re-negotiate settlements. Experience and diligence will invariably lead to ongoing savings •  - how does your organisation compare? UKEP measures your energy consumption and practices against recognised standards for sites of similar characteristics, highlighting unnecessary waste and inefficiency •   - UKEP is committed to helping you find the most cost-effective energy solutions. Companies understand the value of renewable energy technologies if the conditions are favourable. We provide transparent, comprehensive advice that will give you the confidence to make decisions that could revolutionise your organisation’s approach to energy consumption UK Energy Partners guarantees flexibility, transparency, imagination, and trusted experience and expertise. You may have ambitions to rethink your whole approach to your organisation’s energy consumption and the costs involved. Or you may have a smaller, more specific issue in mind. In either case, we’re always willing to meet without charge or obligation to discuss your circumstances and to explore how we might be able to assist.


Utilities Procurement

One simple route to cost saving is to spend less on your traditional gas and electricity supplier/s. UKEP will handle this as a project on its own or as part of a wider remit to reduce and manage your energy costs. Our accredited, independent brokers will handle all aspects of the work, providing expert knowledge to your business ensuring savings on your utility costs. With over 15 years experience in the utilities sector, our aim is to simplify a complicated industry into a decision your business can make and understand. Our service is totally free of charge as we claim our fees directly from the supplier you choose. We can manage your utilities through your entire contract life cycle, advising you along the way of any changes or potential savings. •   - Exclusive relationships with UK suppliers, expert market analysis, and experienced utilities contract negotiators all ensure maximum savings for your business •   - Is your contract the best for your business? UKEP has the contacts and experience to negotiate tariff changes mid-contract, and recommend a tariff structure that works for you •   - Our billing experts have knowledge of all supplier billing regulations and layouts, we are able to manage your billing cycle and negotiate with the supplier on your behalf should billing disputes occur •   - UKEP will consult on and project manage the whole process to meet your timescales •   - Put simply, you don’t need to waste time and money on the phone to your supplier. We have dedicated call centre numbers to all suppliers allowing us to solve your issues quickly and efficiently •        - If your business energy needs change, UKEP can organize your supply to be up/downgraded to suit your new demands •   - UKEP will find you the best renewal rates, interpret the market on your behalf, and if necessary find you better rates with a new supplier.


Compliace and Certification

The word alone, ‘compliance’, spells dread and expense for many. In the energy sector, there are several areas of building and property management that require due governance, particularly for large and/or public buildings. Property managers will usually be familiar with the headlines in terms of their obligations, e.g. for building or equipment certificates or in relation to their CRC submissions. What they will be less familiar with is • •

How to outsource the oversight of these schemes, and How to turn them into positive news, where possible, to use the information to improve energy efficiency and reduce costs as part of a comprehensive energy management policy.

We cover the main aspects of compliance and certification in this sector.

CRC Energy Efficiency Scheme (CRC) CRC is the main legislative instrument governing environmental emissions and energy efficiency in both the private and public sector. Businesses, local authorities, schools are all among the thousands of participants already registered. Non-compliance in itself carries heavy financial penalties; continued poor performance, however, can seriously affect the reputation of an organisation, both within its own market sector and increasingly with the public at large. The key to getting the most out of the scheme is an effective compliance strategy, one that integrates with every level of management, from board-level down, to create a behavioural shift. Beyond the reputational enhancement, increased energy efficiency has its own cost-saving rewards. UKEP will create and administer solutions that effectively manage your site(s) emissions reports, monitor and measure your energy efficiency, and ensure that your organisation and its subsidiaries are fully compliant with legislation that is constantly evolving and requires real-time interpretation.


Compliace and Certification

EPBD Compliance and Certification The Energy Performance of Buildings Directive (2008), to a greater or lesser extent, carries statutory requirements that affect almost all buildings in the UK, public and private. UKEP provides qualified and accredited energy assessors for all the following: •     - give an estimate of the energy usage and CO2 emissions of buildings in the commercial, office and retail sectors, as well as residential dwellings, for comparison by potential purchasers with buildings of a similar type •     - illustrate how efficiently the building is operated, taking into account the type of building and the actual consumed energy over a 12 month period. Currently, DECs are only in force for public buildings, but are likely to be introduced to the private sector from October 2012 •      - providing building owners and operators with basic information about the performance of the systems they control , and to identify opportunities to improve efficiencies (to save energy, costs and reduce CO2 emissions)

BREEAM (BRE Environmental Assessment Method) The leading and most widely used environmental assessment method for buildings, UKEP UKEP has a panel of BREEAM accredited inspectors. BREEAM In-Use is a scheme to help building managers reduce the running costs and improve the environmental performance of existing buildings. It consists of a standard, easy-to-use assessment methodology and a third party certification process that provides a clear and credible route map to improving sustainability. Operating a building involves major costs- with soaring energy prices and an uncertain economic outlook, cutting energy, water, waste and other such costs can be a relatively easy way of improving profitability. BREEAM In-Use is designed to: • • • • • • •

Reduce operational costs Enhance the value and marketability of property assets Provide a transparent platform for landlords, owners and tenants to identify and negotiate building improvements. Provide a route to compliance with environmental legislation and standards, including energy labelling and ISO 14001 Facilitate engagement with staff in the identification of productivity improvements and sustainable business practices Provide a vehicle to evaluate and improve Corporate Social Responsibility (CSR) Provide genuine evidence of sustainability and CSR


Energy Efficiency

Energy efficiency will save you money. Many energy efficient initiatives are low or no cost. Those that require investment will pay you back in savings. All these statements are true- the key to realising them lies in good advice and management.

Energy Audits & Surveys Energy efficiency begins with understanding and information- do you really know how much energy you use, and why? UKEP provide services to help you understand the behaviours behind your organisation’s energy consumption: •   - identify where your energy is being used, and more importantly reveal those areas of inefficiency or unnecessary consumption. In conjunction with a detailed billing analysis, this is a straightforward means of identifying where you need to look to make changes •   - an on-site technical investigation of the supply, use and management of energy to identify specific energy saving measures. These may be tailored to the size and complexity of the building, as well as the resources available for investment.

Management & Metering Rising energy costs and the arrival of CRC obligations are just two reasons why organisations of all sizes are ready to act on energy management issues. As businesses work hard to control the upward trend in energy costs, they need a great ability to monitor consumption beyond the main fiscal meter. Modern commercial buildings are usually equipped with a range of ‘smart’ devices to control HVAC, energy management, lighting, security and other systems. These devices are inherently intelligent, containing valuable information, but they tend to be used in isolation thereby not being used to their full potential. • UKEP will prepare proposals for new or up-graded systems, as part of its wider energy management remit • Real time data can now be used by enterprise applications for maintenance planning, plant optimisation, asset tracking and energy analysis – all via one team and one information platform. Whatever the nature and purpose of your building, the appropriate application of technology and monitoring systems need not be expensive and the returns should be easily recognised.


Energy Efficiency

Lighting, Insulation & Boilers Changing your light bulbs, lamps and equipment is one of the simplest and easiest ways to save money and improve energy efficiency. Lighting can account for up to 40% of your energy bill (and carbon emissions)- saving energy here will not only reduce your costs but will also have significant environmental impact. • A UKEP energy survey will identify areas of cost-saving in lighting use. We will match these with tangible, easy to implement solutions, using only guaranteed high quality products. Before we install, you will be fully appraised on your potential reduced energy use, cost-saving, the timescales around your return on any investment and how such changes could reduce your emissions footprint. Heating and hot water services account for a significant proportion of the total energy used within most buildings. UKEP provides solutions for the best possible efficiency to ensure minimum running costs: • • •

an initial “condition” report for your boiler and distribution systems upgrades, refurbishment, or complete replacement advice on the suitability of existing infrastructure with reference to the possible installation of renewable energy technologies.

Voltage Optimisation The established energy-saving technique of reducing the electricity voltage supplied to a site in order to reduce losses in equipment – and save money (in some cases as much as 20% of electricity bills). • UKEP will carry out full feasibility studies on your property and equipment to establish whether voltage reduction technology can be sensibly and efficiently adopted • We also supply and procure on behalf of our clients

Design Modelling   is a state of the art energy analysis and thermal modelling programme. UKEP’s trained operators effectively create a simulation of the building which then models the structure’s heating, cooling, lighting, ventilating, and other energy flows. Building a live 3D model not only allows integrated access to vital performance and emissions data, in addition we can model lighting and heating solutions taking into account the infrastructure of the building, its external environment, air flows and other control indicators. Results are analysed using a variety of graphical displays and information fields tabulated for export to spreadsheet.


Introduction to Microgeneration

Microgeneration is the term used to describe the process of generating your own energy, for your own use. This will involve using one or more of the renewable energy sources, i.e. the inexhaustible energy sources in the environment. This includes energy from sun, wind, waves and crops: •   - converts the Suns energy to usable electricity •   - essentially converts the Sun's energy to generate heat and transfer this heat into either space heating or predominately hot water •   - Air Source extracts heat from the air and converts through invertors. Ground source uses the higher latent temperature of water pumped through underground pipes, which is then boosted for in building space and water heating. •  - The government sees wind as the leading energy technology in meeting tough renewable targets over the next 10 years •  - Hydro technologies capture the potential energy contained in flowing water and converting this into electricity. Water is not consumed in this process and no carbon is emitted in the production of electricity. •   - a biological process similar in many ways to composting, creating surplus generation of energy as a biofuel to allow power production from methane gas (biogas) produced by organic waste •  - Biomass boilers conventionally use wood (usually in pellet form) and/or occasionally other crops as fuel. They are particularly suitable for larger buildings, such as schools, or larger oil-heated homes Climate change is now an unavoidable and pervasive truth that has entered the Boardroom as well as the classroom. If you expect your organisation to be perceived as socially and environmentally responsible, you need to engage with this issue. Generating your own low or zero carbon energy from renewable sources is a viable option. The uptake of renewable technologies globally has seen the cost of production fall, and it is likely to continue to do so. Microgeneration will make a significant contribution to overall energy use in the UK and, combined with energy efficiency measures, will help towards reducing our carbon emissions. Beyond this, you can reduce your organisation’s energy bills and protect yourself against the volatility of traditional fuel prices in the coming years.

Microgeneration Incentives In 2008, a report commissioned by Department for Business, Energy and Regulatory Reform (DBERR) predicted that, with the right incentives, by 2020 nearly one in five buildings in Britain would effectively become mini power stations, feeding electricity into the grid, or generating enough to be largely self-sufficient.

Now it’s 2011, and the incentives are in place.


Introduction to Microgeneration

Feed-In Tariffs So-called because you will be paid a “tariff” by large energy suppliers for the amount of electricity, generated on-site by your renewable installation, you “feed in” to the grid. There are three main financial benefits: • Generation tariff: a payment for all the electricity you produce, even if you use it yourself • Export tariff: additional payments for electricity you export into the grid • A reduction on your standard electricity bill, given that you yourself are generating a percentage the power you need on-site 11,500 schemes took up the Feed-In Tariff in the first six months after its introduction. The tariffs support a range of technologies but Solar PV tariffs last for 25 years, during which you could earn up to 43p/kWh on the electricity you generate. The installation will pay for itself in about seven years, and the Government estimates an annual return of 8% on the investment.

Renewable Heat Incentive The RHI is a fixed payment for generating heat from renewable resources. It supports a range of technologies and fuels including biomass, solar thermal, heat pumps, deep geo-thermal and on-site biogas (anaerobic digestion). Non-domestic installations will be supported from the outset- these range from small businesses and farms through schools and community projects to larger industrial firms. If you are eligible, you can register for the RHI as of  . • You will be paid up to 8.5p/kWh for the hot water and heat you generate and use. • The Government expects a rate of return on additional capital invested of 12%, excepting solar thermal installations (closer to 5%) • All tariffs run for twenty years • Most users should earn enough money from the tariffs to pay off their installation costs in about seven years- beyond that everything you make from the RHI is profit.


UK Energy Partners Microgeneration Services

UK Energy Partners (UKEP) provides a total solutions service for Microgeneration systems: a full design, installation and maintenance service bespoke to the building and client. From the first meeting through to the commissioning of the installation, UKEP manage the process ensuring that the project is professionally conducted and completed within the given timelines. We will take the project through Planning, manage the Grid connection process, and ensure you receive the full range of incentives available through the Feed-In Tariffs or Renewable Heat Incentive. UK Energy Partners are fully accredited with the Microgeneration Certification Scheme (MCS). UKEP offers experience and expertise in all the major fields of Microgeneration technology:                

Commercial, Community and School Projects UKEP covers the full range of Microgeneration solutions, suitable for almost all scenarios. Our design engineers are able to suggest solutions covering projects as diverse as farm-based Anaerobic Digestion plants to Solar PV for industrial unit roofs and specialised solar garage canopies. An increasing demand for Microgeneration solutions in the community, public sector and schools sectors have led to the development of our ‘holistic energy solution’. UKEP not only provides renewable solutions for almost all situations, but also through collaboration with other UKEP divisions offers a full energy review with a no obligation approach to any and all of the findings. This has proved particularly popular with schools, colleges and community property owners. UKEP offers a range of maintenance packages for all Microgeneration systems to cover the life of the equipment, with extended warranties and scheme insurance packages as required.

Finance UK Energy Partners can deliver projects under several finance options. Our clients can choose to pay for the installation themselves or with the help of their own funding. Alternatively, UKEP can provide either joint venture or fully funded options. Each option will be specifically designed around our client’s requirements and risk profile.


UK Energy Partners Project Management

Whether it’s energy saving, renewables, benchmarking or compliance, at UKEP we understand that detailed planning, efficient technology and financial returns are all diluted without effective project management. • Every UKEP project is assigned a Project Manager who will ensure proper co-ordination of planning, implementation and progress reporting. In addition, there will always be a senior executive providing oversight and quality assurance. • We can step in to help at any stage of a project, but we prefer to provide a fully comprehensive service in order to get the best outcomes for our clients. • Some clients want to have close involvement in projects. Most though don’t have the time, inclination, or expertise to get into the detail. We will match our way of working and communications to fit with your needs. • Even with the best laid plans – and project management – we recognise that things can go wrong. Our role at UKEP is to anticipate the risks, minimise the potential for error, and to take corrective action if needed. UKEP Project Managers may or may not have specialist technical expertise. However, they all know how to harness the skills and experience of those specialists that are required to deliver on a project and, if the need arises, to “troubleshoot”. They also know how to expedite a project to meet its financial targets and any other aims attached to a scheme. UKEP is committed to bringing new technology and new energy options to organisations of all sizes. We are also committed to delivering results.



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