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I N F O R M I N G FA C I L I T I E S M A N A G E M E N T P R O F E S S I O N A L S

fm-world.co.uk / January 2017

TA ST E R E D I T I O N

How organisations can avoid the biggest energy problem of all


F M WO R LD

JANUARY 2017

CONTENTS COM M UNI TY

2 2 PE R SPE C TIV E S The four most interesting and insightful opinions on FM this month 24 T HINK TA NK Are FM professionals healthcare workers of buildings?

KNOW LE DGE

27 A BIT A BOU T YOU Nathan O’Prey on CAPEX projects, LJMU and beer festivals

ANA LYS I S

7 TH E STO DDART RE VIE W What are the themes addressed in “The Workplace Advantage”? 10 M O RE MAIN TE N AN CE The public calls for more local service delivery from authorities

3 5 WID E OPE N SPAC E S Atriums and communal areas are features of high performing facilities 3 6 A BROA D C A NVA S S E D Four ex-pat FMs explain what working in other countries entails

3 2 JA NUA RY @ BIF M The people and projects currently informing BIFM activity 3 6 C A LL S TO AC T ION The events, surveys and discussions that deserve your attention

3 8 5G OPPORT U NIT Y The benefits of renewable energy storage systems

12 D ESI GN FOR LIFE ? The consequences of sleep deprivation have a far-reaching economic impact

3 9 D ISRU PTIV E INF LU E N CE S Contingency plans for power outages or cooling plant disruptions

13 NEWS MAK E RS The stories proving most popular with FM World’s online visitors this month

41 FAC ING U P TO ACC E S S The use of facial recognition technology as access control

18 B REXI T CLOUDS 2017 VIS ION For FM service providers, 2017 could look a lot like 2016 – but Brexit looms

43 HE AT NE TWOR K RE G S What you need to know about the Heat Network regulations changes

FM World’s in-depth analysis section 48 DARK MATTERS What happens when energy supply fails entirely? We look at how facilities managers can tackle an organisation’s lack of preparedness and ensure maximum levels of critical uptime.

52 FUTURE S HOCKS What impact will 2016’s events have on the energy challenges faced by organisations over the next 10 years – particularly the regulatory demands for energy efficiency placed on property sector?

56 DEMANDING WORK Demand-side response systems are expanding in utility as technology improves and the ability to access to intermittent renewables grow. We look at what FMs should know about the emerging sector.

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60 DISTRICT LINE New smart technology and government support is making the potential of district JA N UA RY ’ S TO P I C heating systems ENERGY for industrial areas MANAGEMENT and even entire communities a more palatableW prospect. W W. B I F M .O RG .U K / F M WJ O I N Here’s why.

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F RO NT D E S K A N A LY S I S

The survey cites the public’s lack of trust in private providers and its feeling that the government is “too remote”

that the public would welcome localised infrastructure investment. APSE is calling for a new industrial strategy to recognise the importance of local – and not just national – infrastructure investment, including local area investment to help rebalance jobs, skills and local economic growth. The most popular area for additional spending by central government is road maintenance. Asked to allocate a notional budget across nine services, the public allocated 18 per cent to road maintenance – 50 per cent more than any other area. The survey reveals that the public would welcome localised infrastructure investment. APSE is calling for a new industrial strategy to recognise the vital importance

“THE PUBLIC ARE SIX TIMES MORE LIKELY TO TRUST COUNCIL-RUN SERVICES THAN PRIVATE CONTRACTORS BROUGHT IN TO RUN COUNCIL SERVICES” of local infrastructure investment, including local area investment to help rebalance jobs, skills and local economic growth. In his Autumn Statement chancellor Phillip Hammond announced a £23 billion infrastructure fund, but APSE says he is “out of step with local voters”. Last year, former chancellor George Osborne said local authorities would be able to retain business rates, but there has been little other guidance from government as to how this would be strategically implemented.

A PS E S URVE Y F I N DI N G S

Local services for local people Who do people trust to provide services?

Five times as many trust local councils over the government to make decisions about how services are delivered/provided (54 per cent to 11 per cent respectively)

54% 11%

Local councils

Government

Six times as many trust the local council (60 per cent) to provide services in their local area over a private company (10 per cent), with people trusting the council eight times more than the government (7 per cent)

60% 10% 7%

Local councils

Private company Government

Eight times as many trust local councillors over government ministers to make decisions about their areas (57 per cent local councillors to 7 per cent government ministers)

57% 7%

Local councillors

Government ministers

Tax spent in local area

62%

62 per cent do not think that enough of their tax is spent on services in their local area

Service satisfaction

77%

Waste and recycling services are the areas where the public had the highest satisfaction score, with road maintenance rated the lowest All nine areas surveyed received a satisfaction score (but only just in road maintenance), which indicates the strong performance of local government considering the level of cuts

77 per cent would like the government to give more money to local councils to spend at local level

What do people think about local services and council cuts?

A significant section of the population, but not a majority, perceive a decline in their local services, indicating councils have managed local services well despite the big cuts imposed on them

TOasACCESS FULL the fault of both THE the government and local councils combined (44 per cent) VERSION OF FM while only 27 per cent see this as being WORLD MAGAZINE, caused by government cuts alone JOIN BIFM The term people most commonly use

People are most likely to see this decline

The most popular area for additional spending by central government is road maintenance. Asked to allocate a notional budget across nine services, the public services allocated 18 per cent to road maintenance, W Wto W.describe B I F M .O RG .Uin K their / F Mlocal WJ Oarea I N is ‘Neighbourhood Services’ 50 per cent more than any other area fm-world.co.uk

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£40bn

F RO NT D E S K A N A LY S I S

The UK economy sustains a loss of up to £40 billion a year – or 1.86 per cent of its GDP – because of workers’ sleep deprivation.

P RO DUC T IV IT Y

SLEEP LOSS DAMAGES THE ECONOMY – AND US W O R D S : H ER P R EE T K AU R G R E WA L

PHOTOGRAPHY: SUPERSTOCK

T

he UK economy sustains a loss of up to £40 billion a year – or 1.86 per cent of its GDP – because of workers’ sleep deprivation. Research by independent notfor-profit research institute Rand Europe took data from five Organisation for Economic Co-operation and Development (OECD) countries and found that people who sleep fewer than six hours a night on average have a 13 per cent higher mortality risk than people who sleep at least seven hours. Multiple factors are associated with shorter sleep, researchers concluded. These include obesity, excessive alcohol and sugary drink consumption, smoking, lack of physical

activity, mental health problems, stress at work, shift work/irregular working hours, financial concerns, and long commuting. The potential adverse effects of insufficient sleep on health, well-being and productivity, and the consequences of sleep deprivation, have far-reaching economic consequences, says the report. Small changes to sleep duration could have a big impact on the economy. For example, if people who slept less than six hours started sleeping six to seven hours, then this could add £24 billion to the UK economy, £180 billion ($226.4 billion) to the US economy, £60 billion ($75.7 billion) to the Japanese economy, £27 billion ($34.1 billion) to the German economy, and £10 billion $12 billion to the Canadian economy.

“THE CONSEQUENCES OF SLEEP DEPRIVATION HAVE A FAR-REACHING AND EXPENSIVE ECONOMIC IMPACT”

R E COMME N DAT I O N S

A GOOD NIGHT’S SLEEP

To improve sleep outcomes, people should: Set consistent wake-up times, limit the use of electronic items before bedtime – and exercise.

Employers should: Recognise the importance of sleep and the employer’s role in its promotion; design and build brighter workspaces; combat workplace psychosocial risks; and discourage the extended use of electronic devices. Public authorities should: Support health professionals in providing sleep-related help, encourage employers to pay attention to sleep issues, and introduce later school starting times. Report: tinyurl.com/ FMW0117-sleep

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INSIDE 21 22 24 26 32

The workplace chief Perspectives - four original opinion pieces ThinkTank - the FM team as healthcare workers FM @ Large - seen and heard this month January @ BIFM and Calls to Action

VIEW POINT

B U Z Z WO RDS

CHIEF WORKPLACE OFFICER A chief what now?

One of the key suggestions in the Stoddart Review’s report ‘The Workplace Advantage’ is that “the interface between people, place and process should be the preserve of a specialist with appropriate levels of access and influence”. As evidence, Airbnb’s Mark Levy is cited for changing his job title to chief employee experience officer. This kind of title is seen as evidence that organisations are looking at how the various functions and work stages integrate with each other. The Stoddart Review uses the shorthand of chief workplace officer (CWO) to describe it.

OK, so what exactly should a ‘chief workplace officer’ do?

‘The workplace advantage’ report suggests that a CWO should “remove obstacles, foster collaboration and oversee an environment in which peer-to-peer information sharing, collaboration and production can occur”. What’s important here is that the CWO is the individual to whom FM, IT, HR and corporate real estate report. We’ve spoken in these pages before about organisations’ ‘departments of empowerment’. What the Stoddart Review is saying is that a chief workplace officer brings all of these together as one.

THE B E ST O F THE S E C TO R’ S DI S C U S S I O N A N D DE BATE

Each month we explain the background to phrases you may be seeing or hearing as you go about your work

“WE’RE SEEING A CHANGE IN THE VALUE PLACED ON PROFESSIONALS WHO ACT AS WORKFORCE FACILITATORS, MAKING MARGINAL GAINS IN PERFORMANCE” Couldn’t you argue that FM is already doing plenty of this already?

Indeed you could, and ‘The Workplace Advantage’ suggests that good role models already exist within facilities management, HR, corporate real estate and IT and would be ideally placed to step up into a CWO role. But to be clear, this is seen as a rare and special individual, “a ‘super-connector’ who knows the right people to turn to and who is able to match the right people to the right opportunities. A CWO can develop business cases and work with the individual team/ business units and infrastructure teams to deliver them”.

CRE

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A ‘super-connector’ – again, that sounds a lot like FM...

That’s understandable given just how much of an FM’s job is arguably already about displaying such super-connectivity. Outgoing BIFM chairman Julie Kortens believes that the economy is increasingly biased towards intellectual outputs over production outputs. “We are seeing a change in the value placed on professionals who act as workforce facilitators, making marginal gains in performance in each and every employee,” she says. And the point is again made that it is facilities management that’s best placed to bring people, place and process to enable business.

HR

CWO

IT

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V I E W P O I NT

SEEN AND HEARD

FM@LARGE

MOVE TOWARDS THE LIGHT

The Stoddart Review has generated much debate, with Andrew Mason of Tsebo Facilities Solutions, based in South Africa, having a particularly entertaining take on the difficulty of measuring the productivity of knowledge work. “Any production line in a manufacturing operation that was operating at 53 per cent would go out of business”, he writes. “You can be absolutely sure that correcting this would be the single most important task of the entire management and board. Knowledge work is an increasingly large majority of our western economies, so why then do we turn a blind eye to the productivity of our knowledge workers?” “I would turn to Patrick Lencioni’s explanation n of ‘Better Light’ in his book The Advantage, where he recounts a story from an old episode of hit TV comedy I Love Lucy. Lucy’s husband comes home from work one day to find his wife crawling around the living room on her hands and knees. He asks her what she’s doing: ‘I’m looking for my earrings,’ Lucy responds. ‘You lost your earrings in the living room?’ ‘No, I lost them in the bedroom… But the light out here is much better.’ “And there it is. Most leaders prefer to look for answers where the light is better, where they are more comfortable. And this is certainly the case where productivity is easily measurable and where a production line can easily be seen to be not.” It’s working or not. It s worth reading the full blog:

Ideas and comments made arou around the sector this month

“O MD agrees – dogs “Our in the head office are the ultimate stress th relieving productivity re enhancers!” e @P @PARETOFM’S ANDREW HULBERT, IN RESPONSE TO THE EP EPHFMERA COLUMN IN OUR DECEMBER 2016 ISSUE ON PETS, PL PLACE AND PRODUCTIVITY. (INCIDENTALLY, LUNA IS A COCKAPOO - SHE’S WITH OWNER DI ARTHUR [INSET]

WORKPLACE HAS BEEN A HIDDEN PERFORMANCE ORMANCE LEVER FOR TOO LONG”

NOTED&QUOTED

ALISON NIMMO, CEO, THE CROWN ESTATE

“The physical environment is constantly giving messages that influence behaviour, and you can either use that as an organisation or ignore it. Sadly, the majority of organisations ignore it.”

Visit workplacefundi.com

DESPINA KATSIKAKIS, WORKPLACE TRANSFORMATION CONSULTANT

For more on the Workplace Advantage report from the Stoddart Review, see page 7.

“Continually observe, test, discuss, measure and be prepared to tweak and change your space. Don’t wait 15 years until theTHE FULL TO ACCESS next VERSION OF FM crusade.” WORLD MAGAZINE, NEIL USHER, BIFM JOIN WORKPLACE

“IT’S NOT ABOUT MORE SPACE. THE KEY TO INCREASING DENSITY EFFECTIVELY IS MOBILITY AND CHOICE OF ENVIRONMENTS. BRIDGET HARDY, STRATEGIC ADVISOR ON SMART W WORKING, DEPARTMENT FOR WORK AND PEN PENSIONS

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DIRECTOR, SKY .U K / F M WJ O I N W W W. B I F M .O RG


K N OW H OW

C AREER DE VELOPMENT

C ROS SING B O RDE RS

FM: WORKING ABROAD RICHARD BRADLEY facility operations manager – Germany & Czech Republic, Ebay

My role includes the day-to-day responsibilities of all the FM operations at our HQ campus near Berlin, and various other office buildings in which many of eBay’s other businesses operate. I joined the company in the summer of 2013 after moving my family to Berlin in January of that year.

The more adventurous individuals within the UK workforce harbour thoughts of broadening their horizons and working abroad. For FM professionals wishing to gain an understanding of a different FM environment while experiencing new cultures, finding a role overseas can be an attractive option. FM World has scoured the globe for FMs who have taken such a leap. JACQUI BURT senior facilites manager, Johannesburg, South Africa (now back in the UK)

Any obstacles?

I spent two months in Johannesburg on a secondment. When I arrived, I was asked if I would like to stay longer and open up the Vodacom (majority owned by Vodafone) head office account. I ended up staying for 13 years.

One obstacle to quickly tackle when considering working abroad within the FM industry is the local language. My personal level of German was not strong at the start, but the company supported my learning and using the language every day, along with supportive colleagues (and an very international work environment) has meant that my German has improved greatly over the years. Having a good team around you to support with language and also offering support back in English has been invaluable.

Differences in the way FM works?

There didn’t seem to be the glass ceiling that there was for women in this country. It was far more rounded – there were as many women as men in senior roles, and from all walks of life. It was an open, friendly, helpful, no blame culture. I did find that it was a much smaller FM industry and not so regimented – consequently I moved around a number of organisations during my time there. What I’ve also found returning to the UK is a difficulty in trying to explain to recruiters that you are a complete PFM – that comes down to the differences in the job descriptions. Due to the nature of the FM sector in South Africa, I have the skill set, but without the job title.

Differences in the way FM works?

I haven’t found a huge difference in the way FM operates within the U.K. and Germany - we have similar successes and similar challenges in the day-to-day. As in the UK, Germany also has a strong support network of institutions and associations within FM and getting involved is definitely recommended. I stood in for my manager at a seminar two years ago discussing how we work with our service partners and had to give a presentation to around 250 FM colleagues! This was my first public talk in German and I was nervous, but I got through it and made a wealth of connections as a result.

Any obstacles?

I went out on an invitation letter, so I didn’t do an awful lot in preparation. This meant that I went in on a work visa, which could be extended for six months. The company then organised my work permit. I was put up in an apartment hotel to begin with, and provided with a car. I was being paid in the UK on secondment and allowance when I was first there. Once I accepted the permanent role after six months, that changed; I then had the opportunity for my own accommodation.

What did you get out of the experience?

This move to Germany has in many ways been the best decision of my life and career. I have made a new home here and taken on a new challenge within my career that is proving enriching every step of the way. Being forced into broadening my understanding of how business works - and e-commerce in particular is fascinating in itself - and being able to mix that with day-to-day FM operations is giving me an incredible wealth of experience within our everchanging industry. Who knows, I might even be able to say I’m half German soon!

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Any advice for FMs looking to work abroad?

If you would like to go, do it. Don’t cut your ties with the UK and property, as you may not be on as high a salary in comparison with the UK. One of the challenges in South Africa in particular is the labour relations; you have to know the law inside out and backwards in regards to managing your staff.

W W W. B I F M .O RG .U K / F M WJ O I N

Full interview: tinyurl.com/FMW0117-FMabroadRB

Full interview: tinyurl.com/FMW0117-FMabroadJB

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K N OW H OW

TECHNICAL EXPL AINER

What is this technology, and how might it be used?

Facial recognition software employes infrared technology and is mainly used in time and attendance, access control and security applications. Anyone who has taken a photograph or used CCTV will have seen the effects that bright sunlight behind a subject or different types of artificial light can have on the way someone looks This is a huge problem for verification because even if someone’s images are captured successfully in the first instance, if they look fundamentally different when they next present to the system it may not be possible to match them. The infrared sensors factor in variables such as the time of day or the amount of natural light in the room.

Is it faster than other access control mechanisms?

A normal biometric verification involves presenting a card or entering a PIN followed by the verification process. In this case no card, PIN or any other token other than a person’s face is required. Users being able to carry items such as bicycles, bags etc. through without having to put them down also speeds up the process.

PHOTOGRAPH: GETTY

How does it work with visitors to a site?

This will depend on a particular customers policy, but many just enrol visitors as if they were staff but have their credentials expire after the appropriate period, just as might happen with a cardbased system. We have an aviation customer who has an escorted visitor policy and where the system must verify the person responsible for the visitor immediately prior

tenant office?

ACCE S S CON TROL

Sensors cost the end user about £4,000, including the facial recognition software licence. Site conditions dictate additional costs involving interfaces for third-party equipment.

FACIAL RECOGNITION TECHNOLOGY

Are there additional steps for multi-tenanted offices?

The latest developments in access control centre on the use of facial recognition technology. Gary James at Aurora shares his insight into what the technology can do – and how it might affect the FM operation

There shouldn’t be a great deal of difference. We share our building with another business and everybody from both companies is enrolled in the system. We both have independent access rules and a browser-based interface allows administrators with the correct permissions to add and manage users on the network.

to the visitor and at the same entrance within a given time frame.

What does an FM need to know prior to its installation?

Sensors are not IP-rated and cannot be mounted outdoors where they can be affected directly by the elements. Power and data requirements are similar to industry standard access control and CCTV. Each door or gate with a sensor will require a network connection and we operate on the basis of a central database, with biometric templates distributed out to the edge devices. This means each sensor can operate autonomously should the network be unavailable.] The sensor is designed to be mounted at a particular height to capture everyone who might need to use it. Dual height sensors for disabled access are also an option.

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What is the typical cost of this technology in a single fm-world.co.uk

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ENABLING PRODUC TIVE ENVIRONMENTS FOR PEOPLE AND BUSINESS

Fuelling the debate The challenges, legal responsibilities and technical innovations set to affect how energy is managed and procured in the years ahead

LIGHT? FANTASTIC Making sure the energy supply is never interrupted RULES FOR FUELS Future energy regulations: what you need to know

TO ACCESS THE FULL VERSION OF FM POWER WORLDTAKING MAGAZINE, How to have JOIN BIFM more control of your own energy supply

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FAC I LITATE

AV O I D I N G B L A C KO U T S

O

n Friday November 25th 2016 at sixteen minutes past five, London’s Soho district suffered a massive power blackout. 2,300 properties were affected, with shops and offices, theatres and bars plunged into darkness. The cause of the blackout, which wasn’t resolved until after nine that night was due to a fault on an underground electricity cable on UK Power Networks’ high voltage network; but blackouts can be been caused by any number of reasons. There are ‘normal’ causes such as substation failure, flooding, or project failings, (for instance there’s a contractor on site and the supply is cut) and there are potential threats from cyber-attacks and terrorist attacks. However there’s also an increasing likelihood of brownouts (partial loss of power) and blackouts due to the pressure being put on the UK’s already energy strapped national grid. Explains David Stevens, co-vice chair and secretary of the CIBSE facilities management group: “Power-Gen has warned that the chances of a blackout has trebled from one in 12 years to one in four years and meanwhile the reliance of the UK on wind and renewables has risen, for instance the UK recently ran for an entire day on renewables, but if the wind drops it’s like turning off four power stations at once.”

Dark days ahead

So how prepared are businesses in coping with a blackout? Not well enough if the Soho example is anything to go by – theatres without any alternative source of power were forced to cancel performances, while the bars had to turn away customers. Unfortunately this lack of preparedness is not unusual. According to a survey by British Gas Business, only 17% of SMEs consider loss of energy supply to be a major risk to their business. In larger organisations, such as financial institutions just minutes of power loss can mean millions of pounds’ lost in business or, in the case of hospitals, could result in life threatening situations, which is where back-up systems become an essential. According to Andy Sparrow, energy services director ISS, utilising a combination of UPS’ (Uninterruptible Power Supply systems), back-up generators and battery back-up system packages: “Allows an organisation to keep the site [with these] running at anywhere from 99.995% availability, down to 99.671%. “In the normal domestic household, the level of difference may seem imperceptible, but for a critical business function, the percentage point range can represent a huge difference in business success.” It’s not just the power going out which poses a danger, but what happens when there’s even a short-

lived blackout or a brownout and the electricity comes rushing back into the building. Explains Stevens: “If a big in-rush happens when all of your electricity starts, you can trip your main breaker and if you’re an older office block you might have a fuse rather than an circuit breaker – so you’ll need to get an electrician out to fix it. So a very simple five-minute blackout or blip could mean you’re out of power for many days.”

TO ACCESS THE FULL VERSION OF FM WORLD MAGAZINE, Blind optimism There will of course be a degree of variance inJOIN how BIFM businesses prepare for blackouts and power losses, but W W W. B I F M .O RG .U K / F M WJ O I N the sort of organisations that should be doing most to

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FAC I LITATE

DEMAND-SIDE RESPONSE

D

emand side response (DSR) – the carefully timed sourcing of energy from the grid synchronised to the use of local renewable energy sources - is a favourite of the UK’s National Grid. The UK’s power transmission network believes DSR can meet 30-50% of the required system flexibility of our new intelligent grid as more and more intermittent renewable sources are added into the mix – by moderating peak demand and absorbing surges of cheap renewable power. For those with significant energy needs, DSR represents an opportunity to lower energy costs by reducing demand when prices are high at times of peak demand, and raising demand when prices are low during renewable surges. It can be taken a step further by establishing on-site generating facilities that cover demand and sell back to the grid at peak times, while at the same time providing a guaranteed insurance against blackouts. With short-duration, low-impact changes to when a site consumes or generates, energy consuming facilities of all sorts can earn revenue, help absorb renewable energy and make the national electricity system cheaper and greener. Big data analytics, cloud technology and other advances, combined with the UK’s half-hourly priced market are making this possible, and the technique offers facilities the chance to improve sustainability and meet carbon budgets, as well as cost cutting and black-out avoidance. “Over the last 15 years, reducing energy consumption has been the main consumer focus. This could now switch to making energy use as cost effective as possible by buying when it is cheapest and selling when most expensive”, said Marc Borret, CEO of Reactive Technologies1, an awardwinning DSR cloud technology developer.

Giving in winter and taking in summer

The highest potential for DSR comes firstly during times of peak demand focused on winter evenings, which is normally when the highest power prices occur, especially when winds are light. Secondly it

“ANY FACILITY SEEKING IMPROVED SUSTAINABILITY AND EFFICIENCY IN THEIR USE OF ENERGY TODAY SHOULD LOOK TO DSR”

Organisations are becoming increasingly capable of introducing energy systems to both save money and generate it

comes at times of peak supply, when prices tumble, which is normally on windy, sunny days in the summer – although it can occur any time of year, (with, for example, the 20th November this year seeing negative power prices in Germany due to strong winds). At times of high demand, DSR can help spread consumption more evenly across the day, and therefore reduce the need for reserve capacity to meet peak demand. Responders can absorb cheap power in the morning and then sell early evening, when it’s expensive. This also helps avoid using power during the three most expensive half hours of the winter season (Triad management), which influences the wider price commercial users are charged. The gap between peak winter demand and total capacity has been falling for some time, as old polluting plant has been closed to meet emissions goals. Intermittent renewables have been replacing it, but they need back-up, or some other form of flexibility in the system. The capacity market is incentivising supply back-up, but flexibility can also come in the form of DSR – which, as mentioned, the National Grid expects to meet 30-50% of what’s needed - and to a lesser extent, storage. DSR can also be used for emergencies as well as peak demand, including when power station experience

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FM World January 2017 taster edition