theenergyst.com December/January 2017

You’re hired: Smarter grid: Pick winners: “There is a £4bn profit opportunity 08 Data scientists 22 Government 42 M&S sees more for UK firms that take energy the future of energy fires starting gun on low-hanging energy management, says BT major transformation fruit than ever eficiency seriously” p40 Is energy efficiency regulation working?

How to make the most of the opportunities

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Total Gas & Power limited INSIDE THIS ISSUE 44 Data Centres DeepMind co-founder Mustafa Suleyman outlines how the firm slashed cooling costs at Google’s datacentres and its plans for Artificial Intelligence as a service 42 Energy Ef iciency “More low hanging 56 energy efficiency fruit than ever,” HVAC says M&S energy Government tilts biomass efficiency chief subsidy in larger plants’ favour, Munish Datta retains solar thermal support 20 Policy & 12 Legislation Insight Capacity market reforms have Readers run the rule on Esos, caused collateral damage to efficiency and investment, plus the wider decentralised energy highlights from The Energyst’s sector, says the ADE latest market intelligence

12 The request for Policy & funding should be Legislation An in depth look at why treated as a process energy efficiency plays and not an event second fiddle

theenergyst.com December/January 2017

You’re hired: Smarter grid: Pick winners: “There is a £4bn profit opportunity 08 Data scientists 22 Government 42 M&S sees more for UK firms that take energy the future of energy fires starting gun on low-hanging energy management, says BT major transformation fruit than ever eficiency seriously” p40 Is energy efficiency regulation working? 28 50 How to make the most of the opportunities Esos Monitoring 14 No dice: All Esos audits have & Targeting See page 14 passed the Environment EDI billing may be the main to find out more Cover Agency’s checks although 65% attraction for multisite Story need remedial action. Surely organisations following reform E.ON discusses the that’s not a pass? of the water market importance of energy solutions

News & Comment 4 Gas & Electricity 34 HVAC 53 Insight 12 Energy Ef iciency 40 Lighting 58 Policy & Legislation 16 IT & Data Centres 44 The Energy Awards 60 Finance 32 Monitoring & Targeting 50 Q&A 66

To subscribe please visit: theenergyst.com/subscribe theenergyst.com December/January 2017 3 COMMENT Uncertainty, faster, better If you’d told me last January that the UK would be Meanwhile, everybody I know professionally heading out of Europe and Donald Trump would be is being asked to do more for less, faster. heading into the White House I’d have laughed. The good news is that there has never been such a We live in interesting times. Can we predict what confl uence of factors to allow fi rms to mitigate will happen in 2017? uncertainty and maximise return from available resource. Money is still cheap, at least for now, and we From an energy perspective, it looks likely that the have literally more data than we know what to do with capacity market rules will again be tweaked – or a – much of which can be accessed, analysed and actioned new mechanism introduced – if incentivising large from a mobile phone. While it has been said that a new gas plant is government’s intended outcome. wealth of information creates a poverty of attention, it would be a shame not to make the most of what we Wholesale energy prices rose in the second half of this year already have – an issue which is leading some fi rms to and this winter has seen some serious price spikes. What hire a different breed of energy manager (see p11). the market does in 2017 is anyone’s guess, but for certain, bills will rise due to increasing non-commodity costs. Beyond rising prices, more and more data being pumped into datacentres (which already consume more than 3% of the world’s power) and an uncertain political and economic State Aid approval for climate it is impossible to say what next year will bring. Drax’s Contract for Dif erence subsidy may alleviate So we’re hoping you can tell us – and would appreciate increases in the RO, but will the views of directors and managers to form a consensus outlook in our 2017 Directors’ Report. simply rob Peter to pay Paul Please take our fi ve minute survey at: Next winter, prepare for a signifi cant bill impact from the http://bit.ly/2hddkRn – or fi nd it on theenergyst.com. cost of the capacity market. Renewables Obligation costs In return we will give you will also increase substantially, as to a lesser degree will a free report – and some the cost of Feed-in Tariffs. After that, State Aid approval more data to play with. for Drax’s Contract for Difference subsidy may alleviate increases in the RO, but will simply rob Peter to pay Paul, All the very best for 2017. as the cost will just be classifi ed as a different bill item. For more detailed analysis on non-commodity costs, see p18. Brendan Coyne Contributing editor Whether pro or anti Brexit, UK fi rms are arguably facing the most uncertain year for some time.

Editor Contributing editor Tim McManan-Smith Brendan Coyne [email protected] [email protected] Energyst Media Ltd, PO BOX 420, Reigate, Surrey RH2 2DU t: 020 3714 4450 t: 020 3771 1267 m: 07818 574308 m: 07557 109724 Registered in England & Wales – 8667229 Registered at Stationers Hall – ISSN 0964 8321 Sales director Sales manager Printed by Warners (Midlands) plc Steve Swaine Harry Powell [email protected] [email protected] No part of this publication may be reproduced without the written permission of the publishers. The t: 020 3714 4451 opinions expressed in this publication are not necessarily those of the publishers. t: 020 3751 7863 The Energyst is a controlled circulation magazine available to selected professionals interested in m: 07818 574300 m: 07557 109476 energy, who fall within the publishers terms of control. For those outside of these terms, annual subscriptions is £60 including postage in the UK. For all subscriptions outside the UK the annual subscription is £120 including postage. Circulation enquiries Production [email protected] Paul Lindsell [email protected] Follow us for up-to-date news and information: m: 07790 434813

4 December/January 2017 theenergyst.com

NEWS & COMMENT

UK manufacturers say Esos not working, DSR too complicated and Triad needs reform

Only 13% of UK manufacturers 10-point plan, including fully Manufacturers are missing think the government’s flagship fledged Electricity Demand a huge opportunity, says EEF energy efficiency policy, Esos, is Reduction programmes, as helping to improve the business well as reforms to the Esos case for energy efficiency scheme, to drive demand investment. Meanwhile, just reduction and enable UK 9% are involved in demand- manufacturing to become more side response. Manufacturing robust in the face of increasing body EEF says this is a huge economic uncertainty. missed opportunity and has by an average of 4%, the report The report points out that in While demand-side called on government to found. Additionally, analysis four years’ time about £13bn response appears to have made rethink policy and support. of 70 member sites identified will be added to energy bills to significant gains within the However, its latest report that using capital expenditure support low carbon generation capacity market, the report also says businesses should to replace equipment such as and the capacity market. also suggests more work must take the initiative and lighting, drives and motors, However, says EEF, there be undertaken by National realise substantial savings building energy management is no government support Grid to level the playing field by implementing proper systems and to optimise for energy efficiency. It for demand-side participants energy management. compressed air and heating also calls for incentives for in the balancing markets. Doing so, and undertaking and ventilating systems, would smaller companies (SMEs), It also calls on National Grid low- and no-cost measures deliver significant energy including tax breaks for to reform the Triad charging identified by energy audits, savings with an average energy efficiency investment. system as part of a broader would reduce electricity bills payback of 20 months. EEF has suggested a review of network charging. Carlton Power misses capacity market deadline and gives up Trafford contract

The developer behind the that the government needs to development of Trafford with that new high-efficiency CCGT proposed 1.9GW new gas plant have a clear picture of what our chosen EPC contractor plant are essential for the UK at Trafford in Manchester has generation capacity is going to be GE and we had reached the market in order to achieve the given up its capacity market physically available in the future stage that we would be ready aims of security of energy supply contract as it struggle to and we did not have sufficient to start Trafford’s construction and low cost of energy with the secure backers continues. certainty that our Trafford in January 2017, which would smallest possible environmental Carlton Power told the combined-cycle gas turbine deliver much needed low-cost impact. However, it has become government it was unable to project (1.93GW CCGT) would be electricity in early 2020. increasingly apparent that meet a deadline extension for completed in the time required. “The economics of the the current arrangements for the financial commitment “Since securing the Capacity Trafford project are expected supporting the development milestone (one of the rules Market agreements in December to provide returns of close to of new generation capacity in the capacity market) and 2014, we have invested significant 16% and we have had detailed do not give sufficient comfort was not certain of its ability to resources to complete the discussions with a wide range of for this to be brought forward deliver its contracted power. UK and international investors without substantial and The contract is worth over the past two years to seek unacceptable risk to investors. about £30m a year. Carlton the required capital funding. “Despite this decision, we Power had been given a Investors have consistently will continue to pursue our three-month extension on its commended the Trafford project development of Trafford and our original September deadline in terms of construction readiness power project at Thorpe Marsh by the then energy secretary, The government and technical capability; (near Doncaster) and we look Amber Rudd, last July. needs to have a however, it is clear that they forward to discussing with BEIS That deadline passed on 19 clear picture of what remain very concerned about ways in which much-needed December and the company generation capacity the uncertainty of merchant overseas investment can be issued the following statement: revenues for new CCGT projects. encouraged to participate in this “This decision has been taken is going to be “It has been acknowledged essential regeneration of reliable, with regret but we understand physically available by the government and others low-cost GGCT capacity.”

6 December/January 2017 theenergyst.com Most read stories of 2016 from theenergyst.com 1. Trading standards and police raid BES 9. National Grid to tender for two lots of Utilities and Commercial Power enhanced frequency response

2. Is Triad past its peak? 10. 2016: The year P272 will hit your power bill

3. National Grid to tender for 200MW of superfast balancing services next month Most shared stories (via LinkedIn) 4. National Grid buys 475MW of demand 1. SSE urges smart meter rethink as response to cover next winter costs spiral and benefits tank

5. SSE urges smart meter rethink as 2. Trading standards and police raid BES costs spiral and benefits tank Utilities and Commercial Power

6. National Grid signs 20MW frequency response 3. Government sets out UK smart grid contract with battery storage operator plan, moots 5GW of DSR by 2020

7. Dong Energy enters demand-side response 4. Dong Energy enters demand-side response with wind power balancing service with wind power balancing service

8. Environment Agency publishes full list of firms 5. Bergen Energi and Utilities Exchange that made Esos deadline – see them here rolled into mega TPI Kinect

Readers’ comments Demand Side “My worry is the ending of CRC and transfer of costs from bottom line to supplier invoice will actually Response Turning inertia into inertia reduce the visible case to employ an energy manager. Many companies employed an energy 2016 Report manager because of CRC” Danny Clark, JLL on Esos and the slow death of energy management

“Energy professionals think the largest sources of heat, transport and electricity in 2030 will be gas, oil and gas respectively. This is in line with many existing scenarios. It implies a [heat] system reliant on gas, which has significant implications for the energy system out to 2050” Gareth Parkes, Energy Institute, on Energy Institute urges retrofits

Produced by Headline Partner

and equipment upgrades to make quickest ef iciency gains Partners

“I wonder how many plcs actually look at their energy spend closely in order to improve their The most downloaded bottom lines. You would think a focused approach would ‘maximise shareholder value’” report of 2016 was the Duncan Craig, DC Comms, on British Gas: £4bn energy ef iciency opportunity for UK firms DSR report

“Shortage of money is evidently not, however, a barrier to energy waste” Vilnis Vesma, vesma.com, on UK firms say finance remains key barrier to energy ef iciency

Bergen Energi and Utilities Exchange rolled into mega TPI Kinect US fuel giant World Fuel US consultancies US Energy, core customer propositions. to diverse organisations and Supplies has brought together KTM and Beachfront It also promoted end-to-end assist in managing complex energy management and Energy have also been rolled sustainability services to energy challenges on a procurement fi rms Bergen into the Kinect brand. meet carbon footprint goals. local and global scale.” Energi and The Utilities Announcing the move, Michael Crosby, EVP of the Todd Overgard, SVP Exchange under a new Kinect touted access to a Global Land segment at World of Kinect Energy Group, global brand called worldwide energy network, Fuel Services Corporation, added: “We are committed Kinect Energy. as well as comprehensive said: “Kinect Energy Group to solving energy challenges. The fi rm acquired Bergen procurement and risk refl ects our commitment to Kinect Energy Group last year and fellow third management services to sustainable energy solutions. allows us to deliver on our party intermediary The reduce energy spend and “We are proud to provide customers’ energy vision Utilities Exchange in July. increase predictability as energy management expertise for their operations.” theenergyst.com December/January 2017 7 NEWS & COMMENT

Drax mounts £340m takeover of business energy supplier Opus Energy

Drax is set to acquire EU state aid clearance for Opus Energy is the UK’s business energy supplier the Contract for Difference sixth largest non-domestic Opus Energy for £340m. it was handed by the UK electricity supplier (by Drax said Opus, which government. That deal was meters) and the eighth largest last year generated sales of waved through in December. gas supplier (by meters). £323m to small and medium Haven Power CEO For the financial year businesses, as well sales Jonathan Kini will now have ended 31 March 2016, Opus of £214m to corporates, overall responsibility for Energy had a turnover of would complement its Drax’s two retail businesses. £573m, achieving year- existing supply business, The acquisition will be on-year growth of 9%. Its Haven Power. of interest to third party average annual turnover Opus chief executive intermediaries. Opus growth rate over the past Charlie Crossley Cooke, currently deals with about Kini: will have responsibility for two years is c.15%. chairman Fred Esiri and 160 TPIs, largely for its Drax’s two retail businesses Gross profit for the year managing director Louise SME sales operations. ended 31 March 2016 was Boland will leave the business Opus Energy is the UK’s Six, with a non-domestic also up 10% from the previous following the takeover, which largest non-domestic energy market share of 8% (by meter financial year to £107m and was subject to Drax receiving supplier outside of the Big count) as at 30 April 2016. gross assets totalled £16m. Bristol Energy seeks to reassure customers after ‘irresponsible’ GB Energy goes bust

Bristol Energy has sought manage exposure to price suitability criteria for new to reassure customers that fluctuations – and which suppliers as part of the market it has hedged its position have priced fixed one- entry process, to include how going into winter following year deals very cheaply in the new supplier plans to the demise of GB Energy. order to win customers. buy their customers’ energy, The municipal energy We call on Ofgem Bristol Energy said it is how they plan to look after company also warned that to demand more “very different” to GB Energy. their energy needs, and to small energy suppliers rigorous suitability “Despite being smaller, we evidence the knowledge and will have to hike prices in have been able to forward experience their senior team order to stay afloat in the criteria for new buy energy for our customers, have in the energy industry.” face of rising wholesale suppliers meaning we have all the Bristol Energy is one of markets – and called on energy we need for this winter a number of new-breed regulator Ofgem to ensure and beyond,” said the firm. municipal energy companies. new players have adequate responsibilities for new market Suppliers that do not have Nottingham City Council resource to last the distance. entrants, few small suppliers the means to hedge their launched late last year, “We want to reassure our enjoy that degree of solvency. position were “gambling”, and the company which customers, and anybody Wholesale energy prices said Bristol Energy, and holds its supply licence, looking to switch to us, that have been depressed for will be forced to hike prices Robin Hood Energy, is set you will be safe with us this the past few years, allowing for new customers, or risk to launch Liverpool City winter,” said the company. small suppliers to compete going out of business. Council’s energy company, Backed by the local council, by trading on the short-term “This is not responsible ‘the Leccy’, next March. Bristol Energy has a solid markets, which have lesser practice – and those who Elsewhere, the Greater credit rating and significant capital requirements. will now be suffering are London Authority has financial resource, enabling However, prices have risen GB Energy’s customers, been ploughing on with its it to hedge its position. While in the second half of this the industry and their own ‘licence lite’ model for the regulator Ofgem has been year. That development could colleagues, who will lose their past five years. The idea is to keen to foster competition, cause terminal problems jobs,” the company said. supply cheap energy to TfL. and has sought to taper for insufficiently capitalised “We call on Ofgem to However, the venture appears social and environmental suppliers that have failed to demand more rigorous to be facing severe delays.

8 December/January 2017 theenergyst.com Sponsored column

Reduced surface tension UK energy consumption rose improves system efficiency 1.7% in 2015, BEIS data shows It is well-established that Final energy consumption industrial sector accounting imperfections in a heat exchange across the UK in 2015 rose for 17% of overall UK surface can have a negative impact by 1.7% compared with consumption. Energy intensity on heat transfer. Tony Willis of 2014, according to latest fell by 1.5% year on year. Sabien Technology explains how government figures. However, Across the industry sector a CIBSE award-winning additive industry consumption fell to as a whole, energy intensity to reduce the surface tension of its lowest level since 1970. (energy consumed per unit the heating fluid can improve performance. Final energy consumption of output) has decreased has largely trended down in the by 38% between 1990 and system volume, and will not require The efficiency of heat transfer further dosing for five years under past 40 years. However, lower 2015. However, falls in output from a heating fluid in radiators, air mean temperatures during also cut consumption. normal system conditions. handling units and heat exchangers Independent ‘in field’ verification 2015 lay behind the anomaly, In the services sector, final is influenced significantly by the on more than 50 projects has government data suggests. energy consumption rose by condition of the heat exchange demonstrated energy savings of surfaces. Anything that reduces the On a weather corrected basis, 1.8% between 2014 and 2015 between 10% and 25% and paybacks contact between the heating fluid consumption increased but to 19,403 ktoe. The sector typically within two years. These and the inner surface of the heat only slightly (0.1%), largely accounted for 14% of total final projects involved many different exchanger will inevitably reduce the driven by transport. consumption in 2015, with the building types, ranging from schools rate of heat transfer. In the non-domestic sector, commercial sector responsible and leisure centres to offices and This is a well-recognised final consumption by industrial for two thirds of that total. phenomenon and common care homes. users fell by 124 kilotonne Despite the year-on-year procedures to mitigate it include of oil equivalent (ktoe) or rise, consumption by the System efciency power-flushing to remove sludge As a result of the improved heat 0.5% between 2014 and 2015 services sector peaked in 2001 and scale and the addition of transfer, set-point temperatures to 23,594 ktoe, the lowest and has since fallen by 13%, inhibitors to prevent further scale within the heated spaces can be level since 1970, with the according to BEIS figures. formation. achieved more quickly so that plant However, even in the cleanest, usage and fuel consumption are scale-free wet heating system there reduced. In addition, the increased will be microscopic crevices and heat transfer can result in lower imperfections on the internal heat return water temperatures (delta T) to Solar tax hike outcry exchange surfaces. These effectively the plant room to support improved create gaps between the heating condensing by condensing boilers. generate and how costs have fluid and the heat exchange surface Low return water temperatures may evolved over that period. – gaps that the heating fluid is The Solar Trade Association normally unable to enter because of also help to improve the efficiency of has been lobbying hard its natural water surface tension. low carbon heat sources such as heat against the hike. In December Now, a heating system additive pumps and CHP. it published an open letter called EndoTherm (recently the Sabien Technology is the exclusive UK distributor of to the Treasury, signed by recipient of CIBSE’s 2016 Energy Efficiency Award) reduces the surface EndoTherm for commercial multi- dozens of members and other site applications and is offering concerned organisations, tension within the fluid, enabling it to fill these ‘micro-gaps’ and make closer a free pilot programme of urging a rethink. contact with the heat exchange EndoTherm this heating season to “Businesses, schools and surface. Qualifying organisations can assist organisations trial and identify others with solar face a sharp take part in a free pilot programme potential energy savings from A group of UK retailers, six-eight-fold tax hike from to evaluate the effectiveness of installing the fluid in their estate. academics, politicians and next April,” wrote the STA. Endotherm (see below). A dual pilot programme with both renewable companies have “If this proceeds it will also EndoTherm is an organic-based Endotherm and Sabien’s M2G boiler urged government to take restrict future investment in inert system additive that is fully load optimisation controls is also swift action to avoid hobbling solar rooftops all over the UK. compatible with existing heating available. the solar PV industry with New ministers have described inhibitors and heating system water a potentially huge hike in climate change as ‘one of the treatment. Typical dosage to the Visit our website: business rates on commercial biggest – if not the biggest system would be 1% of the total sabien-tech.co.uk/endotherm/ rooftop solar installations. – threats to our national and The change, which may global security’. We agree. come into effect in April, It would be extraordinary if is due to a periodic re- the government penalised evaluation of business rates, businesses and communities where the Valuation Office for taking positive action. Agency looks at how assets We urge you to stop are valued, the income they the solar tax hike.”

theenergyst.com theenergyst.com NEWS & COMMENT

Nissan and Eaton to roll out commercial scale battery storage units in 2017

Automaker Nissan has outlined Orders placed today plans to upscale its battery Nissan will provide the would be installed by mid- storage unit from household Amsterdam Arena with a 2017, the company said, to commercial scale. 4MW battery storage unit with a similar timetable Alongside electrical partner predicted for commercial- Eaton, the firm also announced scale battery storage units, a 10-year deal to provide a according to Campbell. 4MW battery storage unit Nissan has previously stated to the Amsterdam Arena, that it aims to sell 100,000 home to football club Ajax. domestic battery units by 2020. The stadium unit will utilise Neither firm would commit some 280 used batteries on further volume targets in from Nissan’s electric Leaf the near-term, but Eaton’s vehicles to provide back-up Campbell believes that battery power, store its solar and wind Nissan Europe, also confirmed storage – for both commercial generation and enable the arena that Nissan is now taking UK and residential markets – is to earn revenues from grid pre-orders for an expanded, approaching a “tipping point”. balancing services provision. six-strong domestic range of Payback periods, he believes, With the memorandum storage devices. Priced from will come down rapidly over of understanding inked, the !3.5k (£2.95m) to !6k (£5m), Battery storage the next five years, potentially contract for the project is to units of various size will be will change the more quickly in the UK, given be signed in February with available using both ‘second way we deal with energy price volatility. installation set to commence life’ vehicle batteries and new Nissan’s Wilcox said battery in mid 2017. The project will units. However, that price energy companies, storage will be “transformative”, cost !2.5m (£2.1m) and take does not include installation, enabling peer-to- enabling customers to avoid 10 years to pay back, according which Eaton will handle. peer energy trading peak power prices and to to Nissan. However, that rate Frank Campbell, president, and, potentially, store power from onsite of return is dependent upon corporate and electrical generation. Battery storage the value of peak shaving and sector, Eaton EMEA, said community scale “will change the way we deal grid service provision – if domestic installation costs aggregation models with energy companies”, he peak prices rise, the payback would range from about suggested, enabling peer- period will be shorter. !500 (£421) to !1,500 to-peer energy trading and, Announcing the Amsterdam (£1,260), depending on the potentially, community deal, Paul Wilcox, chairman of complexity of works required. scale aggregation models. Engie CEO: ‘The revolution will not be centralised’

Engie UK and Ireland CEO – and that is clearly where we However, he pointed “biggest wish” was for “energy Wilfrid Petrie has called for position ourselves,” said Petrie. out that Engie’s revenues and energy efficiency policy further devolution of policy Market economics have remained steady. “!15bn to be developed locally”. to regions and cities in order forced the firm to take [our write downs] may have He also called for business to serve an increasingly that approach. Engie, said surprised some people,” rates that are “fair for heat decentralised energy system. Petrie, has written off !15bn said Petrie. “The good news networks compared to other Speaking at the ADE’s (£12.6bn) of central generation is that we are the same utilities” over regulation of heat conference in London, assets, with the broader organisation with the same the heat network market. Petrie added that the future utilities industry dumping net result. We just have “We do not have an opinion” for large utilities was in more than !100bn (£84bn), to adapt and change.” on whether heat networks services, not generation. Half some splitting off business To enable that transition, should be a regulated industry, of the firm’s revenues, he said, units, others attempting to said Petrie, “policy must allow said Petrie. “Good regulation now came from services. reinvent themselves. Petrie these adjustment locally”. may provide clarification “There is more value to us described it as “a landslide, Acknowledging that it was [for investors], but [more today in reducing the amount a dramatic change for most “a bit late for the Autumn importantly], I would like a fair of commodity customers use energy companies”. Statement”, Petrie said his footing with other utilities.”

10 December/January 2017 theenergyst.com Gazprom launches BT energy chief: Data scientists are ‘more transparent’ the future of energy management platform for gas

BT is looking to hire data and traditional disciplines, While attracting such skills Gazprom Energy has launched scientists in a bid to unlock Balloch said he sought an is a “critical issue” for energy a gas buying tool for third greater energy efficiency “evolution in the types of skill- management, equally important party intermediaries (TPIs) throughout its operations. set that we need from energy is convincing boards to view and major energy users. Scott Balloch, BT’s head of managers”. That is, a “much energy as a strategic issue, The Energy Risk VuePoint energy and environment, told more data-centric approach”. according to Balloch. “I don’t service aims to streamline delegates at XEnergy in London Hiring data scientists think enough firms do that,” he the procurement process that the firm had already and training them in the said. But doing so can unlock between Gazprom Energy saved more than £200m a fundamentals of energy significant savings in both and customers with flexible year through energy efficiency management, he said, may the short- and long-term. purchasing contracts, plus investment. Now it seeks further pay greater dividend than “We have taken about any TPI that manages the gains and Balloch believes a new vice versa, “because they £220m of annualised cost customer relationship. breed of energy manager will have the ability to think about out of the business as a result It provides 24/7 access to be required to deliver them. things in a different way and of energy efficiency and the live position data, bespoke While there is “still a role” identify sources of efficiency opportunity is there for lots of reports, price triggers and for mechanical engineers that may not be obvious”. other firms to do the same,” ‘what if ’ calculators plus the said Balloch. “All [our energy ability to transact gas online. efficiency] investments had a Gazprom Energy BT is looking for a new two year payback or better.” procurement manager Rebecca breed of energy manager BT, said Balloch, consumed Sanderson said the service about 1% of the UK’s total streamlines and automates electricity, “so we have to pay the procurement process close attention to it”. He added and enables customers to that rising non-commodity costs “make informed decisions rather than wholesale prices faster, cut costs, reduce risk “keep me awake at night”. and increase productivity”. While sustainability benefits A “more transparent and as a result of energy efficiency cost-effective” service means improvements are welcome, more customers can look at Balloch said he “did not get flexible purchasing, Sanderson into this to save the planet. continued, suggesting TPIs Energy is a key commercial could also increase market risk for businesses.” share via the platform.

National Grid calls for ideas on future of UK gas National Grid has launched a and fuel mix, can be made s
What commercial in the future? major consultation exercise in time to hit those targets. arrangements does the on the future of gas in the UK Launching its ‘Future of Gas’ UK need to consider While National Grid sees energy system. The system initiative, National Grid asks: that encourage the right a long-term future for gas operator thinks gas has a long term investment in the transmission system, major role to play out to 2050 s
How should the gas from industry parties? the firm is currently in the and beyond, despite carbon market develop? s
What services do customers process of selling its gas targets requiring an 80% s
What gas assets will the want from the NTS and distribution assets. Meanwhile, reduction in CO2 emissions. UK need in the future? are willing to pay for? Ofgem senior partner for National Grid wants views s
How does the UK s
What might need to improving regulation Martin from industry on how that manage the changing be considered around Crouch, told the ADE’s might play out in order to requirements of assets, decommissioning parts November heat conference provide government with commercial frameworks of the network? that gas distribution network ‘no regrets options’ so that and arrangements to ensure s
What role does National Grid owners should scale up policy and investment that the NTS and the gas play in providing solutions? hydrogen trials – or start decisions, which will have market frameworks are s
What role does gas to think about building a bearing on technology fit for future options? transmission play decommissioning funds.

theenergyst.com December/January 2017 11 INSIGHT Energyst readers run the rule on Esos, efficiency and investment

The Energyst asked readers for their views on energy efficiency. From Esos to engagement to finance, here is what you told us

sos, the government’s While there has been some flagship policy aimed criticism of the nuances of NO: at improving the Esos – and the Environment 31% Eenergy efficiency Agency’s own analysis of 51 of larger UK firms, has audits found only 35% passed been much maligned. without the need for remedial One of the charges action – the vast majority levelled at the scheme is (86%) of respondents believe that audits – and auditors their audit was thorough. – varied in quality. Another Some 62% said their audit is that, without requiring suggested many energy YES: 69% organisations to act upon efficiency improvements that their energy audits, there could be implemented. Only is little impetus to drive 14% felt that their audit was 1. energy efficiency. Meanwhile, effectively a tick box exercise. organisations that already view energy as a strategic 3. Has board level ● Yes, it was thorough and priority suggested it was an engagement towards suggested many administrative burden that energy eficiency improvements they could do without. increased as a result? 24% ● However, readers Despite Esos having to be Yes, it was thorough but didn't suggest many surveyed by The Energyst signed off at board level, 55% 14% 62% in September and October of respondents thought that improvements were largely positive about there had been no change ● No, it wasn't that thorough, the outcome of their audits. in the board’s interest in but it did the job Of 132 readers polled energy efficiency. Asked why, for their views on energy many respondents said their efficiency, exactly half board was already onside in (66) undertook an energy actively managing energy audit as part of Esos while costs. However, a similar a further 15 respondents number suggested energy complied via ISO50001. plays second fiddle to core Here are some of the business investments. key findings of the survey, An improvement in board sponsored by E.ON: level engagement at almost 2. half of all organisations 1. Was Esos a useful exercise? surveyed indicates a degree Some 69% of those that of success for the policy. undertook an Esos audit said it was a useful exercise, a reasonable score for legislation that has received its fair share of criticism. While three in 10 said The survey forms part YES: NO: the audit was not useful, of a report on barriers 45% 55% some 56% of those to energy eficiency respondents said they had sponsored by E.ON. It is taken subsequent action. now available as a free download. For the full 2. Was your audit findings, please visit thorough, did it provide theenergyst.com an array of options? 3.

12 December/January 2017 theenergyst.com Energyst readers run the rule on Esos, efficiency and investment

Views from SMEs and to deliver short payback 4. the public sector periods from lighting The survey also asked investments, particularly smaller firms not captured if procurement and by Esos, as well as the maintenance are aligned. pubic sector, for their views A fifth of respondents have on energy efficiency. implemented BEMS, which, Most (55%) were from if correctly implemented small companies with fewer and managed, can deliver than 50 employees, while significant energy savings. 31% were from the public HVAC upgrades tend to sector, to whom Esos did require greater investment not apply. Some of the key and as a result, longer findings were as follows: payback periods. YES: 68% NO: 32% 5. 4. Have you conducted 6. What are the barriers for 70% an energy audit within your business in investing 12% 53% 19% 7% 9% the past two years? in energy eficiency? 60% Despite not having to At the SME level, finance conduct an energy audit, is the biggest barrier with 50%

two thirds have recently more than half citing this. 40% done so and around half Filtering answers by subsequently took action. public sector suggests 30% Of 16 responses that finance is an even greater 20% specified actions taken, 10 barrier, cited by 73%. 10% included LED lighting. To a lesser degree, verification of savings, 5. Which technologies board level engagement have you implemented? and information on suitable LED lighting is now technologies were all cited as relatively mature and well barriers. Some 18% said there understood. It is also possible were no barriers at all. te HVAC Lighting BEMS DSR Other

theenergyst.com December/January 2017 13 COVER STORY Opportunity knocks when you take the right partner

E.ON strategic account manager John Walsh caught up with Tim McManan-Smith to discuss how the big opportunities in energy efficiency can be realised by working with the right partners

uring the past few page and put them into action. Is energy efficiency years E.ON has “We want to transition the regulation working? been developing its relationship with the client Denergy management How to make the most of the opportunities from being their preferred capabilities in an aim to 2016 energy supplier to become become a fully integrated Report We are able their preferred energy utility company rather than to ofer a breadth partner, offering a wider just a suppler. While engaging of solutions that remit, including solutions to more in energy solutions are so much more make energy savings. In this it has partnered with The way we will become a fully Energyst to survey attitudes than putting integrated utility company and to energy efficiency, how in LEDs own and run energy assets regulation affects them and John Walsh on behalf of the customer.” particularly what Esos has Produced by Sponsored by achieved a year down the line. Conclusion “It surprised me that 71% of Walsh adds: “We want to share respondents have taken up savings that can be packaged the best result. Through this knowledge and advice with opportunities identified by Esos, alongside these to give a we are able to offer value customers and engage them in that it was so high. In my reasonable payback with to clients in this area. in energy efficiency. When experience the industry average larger long-term savings. “Esos has been wholly it comes to the procurement would be a lot lower than that “A significant chunk of positive in that it got our of energy as a commodity, so it speak volumes about customers have strict criteria on customers engaged in energy procurement customers are the type of people who filled payback. The counterbalance efficiency. Now we just have to already mostly very savvy. out the survey,” says Walsh. is to try and blend solutions; pick up the baton and take it to At the moment there is a E.ON acquired Matrix a solar PV solution may have the finish, to make it easy for much greater opportunity Control Solutions three years a payback of in excess of five them to implement changes. to influence the bottom ago as a way to widen its years while a variable speed There are incentives for energy line with energy efficiency. presence and capabilities drive project may only be 1.5 efficiency that help such as Our challenge is to change within energy solutions. years – a combined energy Enhanced Capital Allowances the customer’s mindset, Alongside technical skill in efficiency scheme may offer that can make significant to educate them about the optimising building controls, a three to five years payback impacts on projects. For savings that can be achieved. This has flourished into and meet the customer’s example we have used ECAs to “It is about customers E.ON’s 24/7 technology criteria. By thinking like this bring an LED lighting project’s challenging themselves to enabled energy management we are trying to do the right payback from 3.8 years to 2.2. make their businesses as approach, at present 30,000 thing and help our customers energy efficient as possible. sites are monitored from the find the best, most energy The Issue of trust There could be a tendency to Glasgow control room. efficient solution for them.” “As the survey highlights, do the minimum, but if they “We are able to offer a trust has been a problem engage with the right partner breadth of solutions that Does regulation work? regarding getting energy they can ensure they achieve are so much more than Walsh says Esos was important efficiency advice from suppliers their energy efficiency goals. putting in LEDs,” comments because it broke us into and that is one of the reasons “Moreover in today’s Walsh. Although 71% have the audit environment in why we partnered with the competitive environment it done something post Esos, customer minds. “This gives Carbon Trust for Esos,” says is crucial that customers are the majority were making them a greater understanding Walsh. “This enabled the use as lean as can be and with smaller low-cost or no-cost of what’s possible. We are of their experienced auditors the right energy partners efforts and while that makes technology and solution and following that we were they can achieve that.” sense there are often bigger agnostic, so it’s about working able to take the results off the eonenergy.com

14 December/January 2017 theenergyst.com

GAS & ELECTRICITY Smart meter rethink urged as costs spiral and benefits tank

SSE says delays to critical parts of smart meter infrastructure have hurt UK-wide rollout. The government’s own assessment confirms this. Is BEIS planning to soften the requirements? Brendan Coyne reports

SE has urged the TABLE 1: OVERVIEW OF CHARGES TO ANALYSIS SINCE 2014 IMPACT ASSESSMENT (IA) government to reconsider the 2020 Section NPV NPV PV cost PV benefit deadline for completion (£m) change change change (£m) S (£m) (£m) of the UK-wide smart meter rollout or risk further costs Starting point (2014 IA) 6,214 n/a n/a n/a being piled on to consumers. Methodologic updates 6,810 595 1,151 1,746 While government is sticking to its estimates, the rollout Changes to exogenus assumptions 6,291 -519 -100 -619 may well cost considerably Cost update for the DCC, its service providers, 5,913 -378 378 0 more than the £11bn forecast and other mandated organisations (excluding two years ago year by the Smart Energy GB) National Audit Office. The NAO Cost update for Smart Energy GB 5,818 -95 95 0 suggested that programme Updated rollout profiles and timing 4,805 -1,013 -534 -1,546 benefits, while outweighing assumptions the cost, were unlikely to Updated installation and equipment cost 5,846 1,041 -1,019 22 significantly reduce energy bills. assumptions The government’s own figures confirm that view, with DCC adaptor service costs for smaller suppliers 5,708 -138 138 0 projected benefits delivered by Updated assumptions about Home Area 5,523 -185 186 1 the programme already £415m Network solutions and costs down from 2014 estimates. Latest Update of advanced meter volume and cost 5,483 -40 64 25 BEIS figures suggest annual bill assumptions savings for dual fuel households Revision of Nbetwork-related benefits 5,338 -145 0 -145 of £11 by 2020. The department Updated assumptions about IHD costs 5,646 308 -308 0 says ‘average’ annual non- domestic savings for electricity Time-of-use assumption charges 5,749 103 0 103 and gas will be about £128. SMIP Programme spend update 5,746 -4 4 0 MPs on the now defunct 2016 Cost Benefit Analysis vs 2014 IA -469 54 -415 Energy & Climate Change Committee were more critical Source: BEIS than the NAO, cataloguing a host of major problems with it warned the committee last order to protect customers and by an order of magnitude to hit the rollout and warning that year, believes that makes the ensure benefits are delivered.” the 2020 deadline. Other energy the project would become “a 2020 deadline unattainable. Government should honour suppliers are in a broadly similar costly failure” if government “Combined with a range of “the commitment to the offer position, which suggests that did not take a more active role. other outstanding constraints, of a smart meter to all by 2020” the call for pragmatism may Since the committee’s [the DCC delay] is undermining but not insist upon suppliers eventually become a moot point. report, key elements of the confidence in the programme “taking all reasonable steps” to BEIS secretary of state Greg programme, such as the and compressing the window install a meter in every one of the Clark appears to have taken SSE’s central communications in which suppliers can roll out UK’s 30 million households and concerns on board. His speech infrastructure provided by the enduring solution at scale, business, the firm suggested. at the EnergyUK conference the Data Communications driving up costs and creating SSE has 8.14 million energy in November confirms the Company (DCC), have drifted challenges for the industry,” customers and must install more 2020 deadline is for ‘the offer’ further off course (to the tune said the firm in its November then seven million smart meters. of a smart meter, which may of £378m in lost programme half year results statement. So far, it has installed 330,000, up potentially indicate a softening benefits, according to BEIS, “It is therefore SSE’s view that from 100,000 in September 2015. of the requirements on suppliers with the knock-on effect wiping a reconsideration of the delivery That suggests SSE will need to to take “all reasonable steps” out £1.5bn in benefits). SSE, as timetable is urgently required in increase the rate of installation to install meters by 2020. te

16 December/January 2017 theenergyst.com

GAS & ELECTRICITY Firms ill prepared for ‘huge’ capacity costs on energy bills

Rising non-commodity cost elements of power bills will start to hit home next year, warns SmartestEnergy. Brendan Coyne reports

K firms appear year, £6.01MWh in 2018-19 ill-prepared for and £9.10MWh in 2019-20, the impact of according to SmartestEnergy. Ucapacity market “On current projections, costs on power bills, which the FiT CFD cost is really could increase almost a going to come through after hundred times next year. this year – be ready for it is According to calculations our message,” said Cox. by SmartestEnergy, a typical “Even a £3 charge, which large energy user could take we expect to see come a £1m hit next year due to through next year, is about the government policy. an extra £30,000 for every The capacity charge is levied Including the cost of 10GWh of power – and by upon energy use on winter exempting the most energy 2018/19 every 10GWh will be weekdays (November to intensive industries from costing almost £60k in CFD February) between 4pm and rising renewables costs, payments alone,” he added. 7pm. Businesses consuming SmartestEnergy “So if you submit power during those times Even a £3 charge, predicts longer-term will face a steep increases which we expect to Renewables budgets, do in charges as a result, see come through Obligation costs account for the warned SmartestEnergy. will increase 30% CFD charge. It The firm outlined the kind next year, is about around 20% to of respondents said they isn’t significant of hike users may face in a an extra £30,000 £19.63/MWh had accounted for the yet, but it recent webinar. For example, a for every 10GWh of for 2017-18, cost of the capacity is going to large energy user consuming power which would market in next be soon.” 100GWh per year may use 5%, add £30,000 year’s budget or 5GWh during that winter to an annual Triad warning evening peak, suggested Mark many firms could be caught 10GWh power bill, The firm also warned Cox, key account manager at cold. “Personally I am not too the firm calculates. I&C businesses to consider the business energy supplier. sure all businesses are ready for SmartestEnergy predicts the impact of other market “This winter [given the the scale of these costs coming small-scale FiT costs will levers on the Triad mechanism. small volume of DSR-based through on their bills. Especially increase by about 14% in 2017- While companies have capacity involved in the if you are a large energy user, 18, and a further 8% in 2018-19. become used to turning down mechanism], that would equate this is a huge cost, which is “Both [of those estimates] for what they think will be to a capacity market bill of coming through soon,” he are up on our previous the highest half hourly winter about £12,000,” he said. “Next warned. “You must be making projections as we continue evening peak, Cox said the winter, 2017-18, that £12,000 contingency in your budgets.” to hit deployment caps each effect of the capacity market will become almost £1m.” A poll by the firm suggests quarter despite all the subsidy occurring simultaneously Cox said the firm was Cox’s fears are well founded. cuts,” said Cox. “They don’t may mean the Triad period trying to highlight the impact Just 30% of respondents said seen to have dampened potentially “stretches beyond the capacity market would they had accounted for the small scale solar investment the traditional 5pm-6pm peak”. have on bills to customers cost of the capacity market as much as perhaps we “It is going to be interesting,” and intended to levy a in next year’s budget. thought they might.” said Cox. “What we are fixed monthly contribution Large-scale subsidies via saying is not to try and target throughout the year to avoid Rising Fits, CFD and RO the CFD FiT will also hit any one half hour [to hit bill shock in April when actual Meanwhile, the firm warned bills next year and harder the Triad], but try and keep that capacity costs are calculated. of rises for most other year after, from £0.76/MWh [reduction period] as wide Despite those efforts, Cox said non-commodity costs. today to £3.78MWh next as you possibly can.” te

18 December/January 2017 theenergyst.com

VIEWPOINT

The latest auction, for capacity to be delivered in 2020, looked largely like the previous one

Where does Capacity Market reform go next?

The Association for Decentralised Energy’s head of policy Jonathan Graham discusses how the capacity market has been reformed and the collateral damage that may have been brought about by this

he Capacity Market generators. Added to this, as HM Treasury had previously targeted in new air quality auction results the government significantly implemented similar rules for rules, Defra’s consultation announced in increased the amount of renewable subsidy recipients. sets in place a reasonable TDecember were the capacity it would procure, The final policy will see the air quality standard for new culmination of more than increasing the clearing price. government protect existing plant, which has already 12 months of effort by the The problem with this investments, and the new been agreed at the European government to reduce the three-pronged approach rules will target when the level through the Medium role of diesel and increase against diesel generation was financing schemes are used to Combustion Plant Directive. the competitiveness of gas that instead of hitting just the build generation assets, not For genuine back-up CCGT power stations. target, there was substantial when innovative smart energy generation, Defra proposes Following a series of risk of collateral damage companies use the schemes for they run for up to 50 hours alarming press reports in to the wider decentralised their initial investments which a year without a permit autumn 2015, the government energy sector, including had no relation to the Capacity requirement, as this allows came up with a plan. Unable demand response, backup Market. This approach is the owners to regularly to change the scheme itself generation, combined heat largely fair, although it is test the back-up system because it did not want to and power, and renewables. not fair that start ups using while participating in triad re-request State Aid approval, So now that we are one these financing schemes to avoidance and National Grid the government set a three- year and two Capacity Market start new businesses, which services. Again, this is a fair pronged attack to harm diesel auctions later, how well has may happen to include a CHP approach, will not result in generators, including blocking the government’s three- energy centre as part of their any net emission increases, venture capital financing for pronged approach fared? business plan, are captured. and ensures diesel backup Capacity Market participants; assets are not overused. strengthening the air quality EIS and VCT Air quality standards A loophole which allows requirements for diesel Limiting to the use of EIS While there has been mobile generators to escape generators; and increasing and VCT by Capacity Market industry worry that back-up the regulation will need to network costs for distributed participants was likely inevitable, generation could be unfairly be addressed, however.

20 December/January 2017 theenergyst.com Network charges and corner of the energy system. Market auction itself? the embedded benefit It has already committed to Even after all these reforms, So far, fairly good. But the charge the residual to onsite the auction held in December, good news ends when we generation “as a priority” and for capacity to be delivered reach network charges, and demand-led triad avoidance in 2020, looked largely like particularly the transmission Instead of hitting could also be reviewed. the previous one. The auction network embedded benefit. This just the target, there Unlike the reforms to cleared at a slightly higher embedded benefit is a rebate was substantial investment funding and air price, and secured nearly suppliers receive from National risk of collateral quality standards, the network 2.5GW of new build engines, Grid and pass to distributed charging reforms represent a one small CCGT, and one small generation who export during damage to the fundamental change in how OCGT station. So it looks like triad periods. Ofgem is wider decentralised demand users interact with the reforms have not changed considering ending the TNUoS energy sector, the transmission network the auction results much, embedded benefit, currently including demand and should never have been with continued strength from worth about £45/kW a year. used to deliver such a narrow engines and few new CCGTs. The assault on the embedded response, backup Capacity Market goal. The big winner out of the benefit was intended to harm generation, So until Ofgem has had auction was DSR, which diesel generation but will combined heat the opportunity to faced continued policy have an enormous impact on undertake a more and regulatory the other estimated 7.5GW and power, and rigorous, holistic challenges, of distributed generation renewables review, which tripled its available at triad periods, the current capacity to which includes combined heat process has 6GW 1.4 GW. and power (CHP), energy from regulator, and did not review not allowed, Capacity locked If there is a waste, and battery storage. any quantitative evidence about it needs warning sign These generators are the impact of this change. The to ensure in for 15-year from the most located on manufacturing industry panel’s Citizens Advice it protects contracts recent auction, it sites, hospitals and farms, representative even said “there consumers, is about what kind and some industrial was insufficient time available security of supply, of electricity system manufacturers would see their to fully analyse the impacts and investor confidence the Capacity Market is energy costs rise by 20%. of the proposed solutions on by taking a cautious, designed to deliver. There is now Ofgem is now weighing consumers”. Ofgem’s rejection compromise approach. 6GW of capacity locked in for the recommendations of a of stakeholders’ concerns 15-year contracts. There needs transmission industry panel, on how these changes will Essential reform to be careful consideration of some of which would reduce impact security of supply But most importantly, whether the Capacity Market’s the embedded benefit down to is equally worrisome. what has this three- unlevel playing field between zero. Unfortunately the industry Whatever Ofgem decides pronged approach new build generation and process was rushed by the to do, the impact of Ofgem’s achieved where it was other participants will unfairly transmission industry and the philosophy will be felt in every intended to, in the Capacity damage existing generators and demand response. The problem with the Government’s three-pronged approach is that it tried to end new build diesel generation without ever addressing the underlying problem, which is that the Capacity Market’s design distorts the market towards cheap capital cost, low-efficiency new build solutions over longer-term, cost-efficient solutions that provide better long-term value for the consumer. Unlike the reform programme to date, making changes to fix this issue would create a fair marketplace, where demand side and supply side, Embedded benefit changes are intended to curb diesel generation but the ADE fears they will new and existing, can compete also hurt other forms of generation, such as CHP. This unit is being installed at the tallest hotel equally to deliver the best long- in the UK, Novotel London Canary Wharf term value for the consumer. te theenergyst.com December/January 2017 21 SMART GRIDS Government sets out smart grid plan

The government and Ofgem are preparing in earnest for the rollout of a UK-wide smart energy system. The call for evidence signals major change for the power system. Brendan Coyne reports

he government is households are metered and paving the way for settled half hourly by 2018. all businesses and If it does, all power users Thouseholds to pay will be exposed to peak and more for using electricity at off-peak pricing, although peak times – and less when the consultation notes “the there is plenty to go around. most vulnerable customers That message is contained [will be] afforded suitable within a raft of potential protections to ensure they are proposals in a call for evidence not made worse off by a more published in November by flexible electricity system”. the Department for Business, A UK smart grid also requires Energy & Industrial Strategy new energy storage rules and (BEIS) and regulator Ofgem. a level playing field between The document asks how generation and demand-side policy and regulation might be so that the power system no rewritten in order to create a longer favours power stations. market and balancing digitised power system in which To that end, BEIS and Ofgem mechanism (currently they need factories, offices, batteries, outline options to create a Smart grid will require a supply licence to do so); how cars and dishwashers help more balanced regulatory new forms of inertia to implement time of use tariffs balance demand and supply. framework, suggesting a for all; how smart network A smart power system flexible whole system approach how energy storage should charges should be structured; requires both infrastructure and could save the UK £17bn- be treated from a regulatory and how government might price signals. The government £40bn cumulative to 2050 perspective; how demand-side improve policy levers including indicated it will decide whether while meeting carbon targets. response aggregators might the capacity mechanism to mandate all businesses and Views are sought upon: participate in the wholesale and renewables subsidies to better deliver a flexible whole-system approach. More demand turn-up hours The call for evidence also floats the idea of procuring and more to be procured 5GW of demand-side response (DSR) by 2020 and asks how National Grid will extend the period for its summer demand turn-up (DTU) service to run from to engage businesses not March to October next year. The system operator has also confirmed it aims to double the providing DSR, plus how and 300MW it procured in 2016 and will provide two routes to market for providers. when to engage households. While most forms of balancing ask businesses and power stations to adjust output or Suggestions on standards consumption when there is a power shortage, DTU aims to balance the system when there is for interoperability for smart too much power to handle. National Grid says that is a growing challenge. Last summer’s DTU appliances are invited. trial saw 10,800MWh of response called into action. Meanwhile, the report Procurement for next year’s service will begin in February. However, after the first trial with says distribution network distribution network operator Western Power Distribution, the system operator and the DNO have outlined plans to tweak the mechanism. operators (DNOs) should Providers can bid for ‘fixed’ DTU contracts in February, locking in prices for their availability waste no time transitioning to throughout summer. They can also bid for ‘flexible’ DTU contracts on an ongoing basis distribution system operators, every Friday and Tuesday between 27 March and 29 October. Providers can submit different effectively becoming regional availabilities within the same availability window. system operators. te The minimum clip size for providers will remain 1MW, but it will now be less constrained by location – so that megawatt need not be aggregated within the same grid supply point. See the full call for evidence at: http://bit.ly/2gyP0H5

22 December/January 2017 theenergyst.com VIEWPOINT What are your 2017 energy efficiency resolutions?

Energy Services and Technology Association (ESTA) director Robin Hale looks at the opportunities that are on the horizon for energy efficiency

ill you be heat delivery systems are quarter. Watch this space! embracing making what is described as With continued integration, technology? ‘central heating for cities’ a communication and smart WUnderstanding more effi cient solution for devices becoming even more the ins and outs of an M&V high-density built-up areas, apparent and traversing plan? Considering new as well as campuses and sectors, fi nding the right supply-chain partners? Or more rural communities. solution that has a degree of sharing your knowledge, To encourage take-up and future-proofi ng is paramount experience and best practice investment in heat networks, to ride the wave of continued ‘nuggets’ with your peers? the government aims to product evolution. One thing is certain, the provide £320m of capital Helping you along that energy market is always a support over fi ve years, journey and being able volatile one and, as such, initially to the public sector to question in person the a place for opportunity with the fi rst pilot phase professionals behind the and innovation. Heat, worth £39m set to be paid products, Esta moves forward light, storage, behavioural to applicants by the end of into 2017 continuing with change, and much more March. Badged up as the its respected event series. is being measured and Heat Network Investment First on the horizon comes monitored as neverbefore to Project (HNIP) and delivered our 15th Annual automated maximise use and minimise by Salix, the main scheme Monitoring & Targeting energy by understanding is expected to open during (aM&T) Conference and new ways to use it more 2017 and run for four years Exhibition, which will bring effi ciently and effectively. (hnip.salixfi nance.co.uk). together the latest technology Energy management is no and software providers from longer taken in isolation and Step-change in water 40 UK companies, with the must be an integral part of an Water is also seeing a major expertise and knowledge to organisation’s overall strategy. step-change in 2017 with the provide the right solutions So will 2017 be the year onset of competition in water for your business. to deliver on the promises retail supply and wastewater There will also be a full- 2015 had to offer due to services providing the ability day informative conference Esos audits and see further for non-domestic customers with both presentation and savings in heat, water to choose the right services panel sessions covering the and smart technology? and bundled packages. topics mentioned above and The Open Water programme With continued more than 250 other industry A busy year brings together Ofwat, Defra integration, professionals to network with. With the EU’s new and MOSL to make this communication What better way to start European Energy Effi ciency happen and its success will 2017 than to get out of the package set to complete rely on consumers’ appetite to and smart devices offi ce, listen to great speakers negotiations on revisions embrace change in the search becoming even and discuss industry issues to the Energy Effi ciency for better and perhaps more more apparent and with like-minded professionals Directive and Energy consolidated utilities services. traversing sectors, seeking the right tools and Performance in Buildings Will 2017 be the year knowledge to secure a more Directive by late 2017, it is the smart meter roll out finding the right energy effi cient future. going to be a busy year. succeeds in providing a solution which Heat networks in particular solution to interoperability has a degree of Book your free place by are going to have a major and communications? DCC visiting amt.esta.org.uk part to play in the future as go live date is scheduled future-proofing is advances in technology and for the end of the fi rst paramount

theenergyst.com December/January 2017 23 ENERGY EFFICIENCY Numbers game: Why energy efficiency plays second fiddle

Energy efficiency investment faces higher hurdle rates than many other types of business expenditure. The Energyst asked seasoned consultants and energy managers why that is and what might shift the balance

any boards insist on short payback periods for Menergy efficiency. Previous end-user surveys by The Energyst suggest strong Payback is a preference for paybacks of poor criteria for less than two years within the evaluating and private sector. Yet businesses are prepared to take paybacks comparing energy- of five to seven years on other saving projects. It James Summerbell John Mulholland energy projects, such as solar tells you nothing PV. So why the arbitrary two- about the energy year rule for energy efficiency? strategic unless it is a large efficiency payback periods] James Summerbell, and cost savings industrial user or CSR is a to ensure that they only managing director at Noveus over the project life driver to the business.” capture projects with a really Energy and former energy John Mulholand That is particularly the case, certain payback,” he adds. manager at Tesco, says: “I he says, when the investment “Also, they are comparing think the simplest explanation is “invisible”. “Solar PV is these type of investments is that energy projects tangible, you can see it on with procurement projects, compete with other draws the outside of the business – which drive short-term cost on capital expenditure. and often there is a revenue reductions and which don’t “Although energy is often component to that investment, involve capital expenditure.” one of the larger indirect it is not simply cost Short-termism is part costs within a business, avoidance,” says Summerbell. of the problem, says John energy investment is “Businesses are setting Mulholland, founder and rarely considered as being quite a high bar [for energy principal consultant at Credibility deficit? As incorrect data leads to poor investment decisions, so “If the central government estate inaccurate measurement and verification of projects can was mandated to meet certain policy exacerbate boardroom distrust. requirements with regard to energy Ian Jefferies (pictured), head of performance management efficiency, that could slingshot activity at energy efficiency verification specialist firm EEVS, in the private sector through the case acknowledges that the sector suffers from a “credibility studies and data that would emerge as a deficit”, which can have a knock-on effect. result,” he says. “If companies are going to approach energy efficiency in a “That does play to the point of transformative way – estate-wide rather than on a piecemeal improving UK competitiveness post- basis – they need greater assurance that they are going to Brexit and there is no shortage of finance these projects. Lots achieve the numbers that they see presented. If that is not of organisations are keen to fund them, yet it is unclear that the case, why should they invest again?” he says.“And then finance has been used in any material way to drive energy the business case suffers when the next project is presented. efficiency forward.” Having that certainty is critical to the investment case.” If government is serious about improving energy efficiency, Accurate validation based on robust data addresses the as BEIS secretary of state Greg Clark, says it is, “perhaps that issue, says Jefferies. But he thinks the public sector could help would be a better focus for government action”, than trying to dispel historic distrust by taking a lead. reinvent the wheel, Jefferies suggests.

24 December/January 2017 theenergyst.com energy efficiency investment, Price rises and rule changes Mulholland believes. For example, a project might Speaking at the Energy Live conference in London, Mike have a three -year payback Huggins, a director at Frontier Economics, predicted rises of It is critical for but have an IRR of 38%. So 5-10% in the next 12 months due to the 20% fall in the value of while it might fail a payback Sterling over the past year. energy managers to hurdle it might pass an IRR Meanwhile, proposals to change distribution charges develop and protect hurdle, says Mulholland. via a rule change called DCP288 may also affect the prices Therefore it is wrong to companies pay for power when it comes into force in April 2018. a reputation for use payback as a first filter It maylead companies to refocus on energy efficiency rather money-saving ideas on projects – otherwise some than demand shifting to avoid peak charges. and the request for DCP288 will, to a degree, flatten distribution charges so that good projects will be rejected. red band prices are far less expensive, while making businesses funding should be “I think it is up to energy pay more for using power in amber and green bands. treated as a process managers to give boards Whereas current red band prices are up to 100 times and not an event the payback [metrics], if more expensive than green band prices, they will end up that is what they want. being between two and ten times the multiple, according to Vilnis Vesma But also to give them an Utilitywise strategy director Jon Ferris (pictured). alternative and show them He thinks businesses that are already load shifting to avoid the savings over the life of the peak charges will continue to do so, given a financial incentive project,” says Mulholland. remains. But higher charges throughout the day, as well as “The problem is, some potential changes to the Triad methodology, may also lead companies have very set people to reconsider their strategy. templates. You don’t actually “Businesses that have looked more recently at demand get in front of somebody to shifting are probably going to make a presentation, you look again at energy efficiency and pure demand reduction,” just fill in a form and it Ferris says. But, he adds, they goes into a spreadsheet.” should be doing that anyway. “But if you have 20 energy “There is an underlying need projects and put them through to understand where and when this process – payback – you electricity is consumed in the end up with a certain hit business in order to eliminate list. If you then put them waste. DCP228 is not going to through the machinery of do anything to make that less discounted cash flow, you important.” will come up with a different l For more on DCP288 see list,” Mulholland adds. feature on page 32 “It is worth energy managers showing that to »

Mulholland Energy Solutions. Mulholland, they are applying “Business planning the wrong measure of success mentality is very short scale. It to the wrong set of numbers. Start small is also sometimes determined “Payback is a poor criteria If companies are unwilling to spend by who owns the business,” for evaluating and comparing capital on energy efficiency, energy says Mulholland. “If a private energy-saving projects,” he managers have to look at what they equity company is taking says. “All it tells you is when can achieve with minimal revenue and over a business, they impose you get your investment back. maintenance budgets, says Vilnis Vesma, that sort of criteria. So even if It tells you nothing about (pictured) a former energy manager the energy manager realises the energy and cost savings turned energy consultant and trainer. how illogical that is, and after the payback period “My advice to an energy manager beginning their career would be: start with some even if the accountants are and over the project life.” unambitious dead certs that cost very little but make an enlightened, the people above Applying discounting impact. Measure the impact, verify it and keep a record. Then them apply that criterion using either Net Present when you move onto things that require investment you can because they could be selling Value (NPV) or Internal show what you have done, what you need to do, the internal the company next year and Rate of Return (IRR), says rate of return, the risks attached, how to mitigate them they don’t want to plough Mulholland, will tell you and show precedent for the project within your industry, to capital into the business.” total savings over the project ensure the board feels comfortable,” he says. life in today’s money, so that It is critical for energy managers to develop and protect Wrong metrics competing projects can be a reputation for money-saving ideas and implementations, Even if businesses are meaningfully compared. believes Vesma – and the request for funding should be prepared to invest in projects “Financial illiteracy” is treated “as a process and not an event”. with longer paybacks, says therefore a key barrier to theenergyst.com December/January 2017 25 ENERGY EFFICIENCY

their [finance] people and for many years, says Bowden, being a little more bold about plus the fact that whole-life challenging the status quo.” costing is strongly advocated by the Esos regulations, Wrong costing “most businesses, small Energy consultant Mervyn You need to have a or large, totally ignore the Bowden, managing director well constructed, opportunities that whole- of Intuitive Energy Solutions logical, properly life costing presents”. and former head of energy costed, longer-term at Marks & Spencer, agrees Capital versus revenue that accounting treatment energy plan. Which I Accounting treatment in Mervyn Bowden is part of the problem. think in the majority terms of capital versus “In the private sector, of cases doesn’t exist revenue budgets is also a most finance directors are key issue, says Bowden. Bowden,“you need to have just not up to speed with Mervyn Bowden “Most schemes involve a well constructed, logical, whole-life costing at all. Or capital investment and, properly costed, longer- if they are they ignore the particularly in larger term energy plan. Which opportunities it presents,” organisations, capital budgets I think in the majority of says Bowden. “Because if you sit separate from revenue cases doesn’t exist.” start tying-in maintenance budgets. If an energy efficiency savings with energy savings scheme could achieve payback Energy prices and Brexit and other FM savings, your within 12 months, it will come Energy prices play a critical overall returns are far greater out of the revenue pot. If it role in determining the rate than they will be from the is longer then it is likely to of return on energy efficiency energy component alone.” come out of the capital pot.” projects – and it could be that Despite consultants banging However, for it to come market forces make energy the whole-life costing drum out of the capital pot, says efficiency a higher priority over the next few years. Wholesale gas and power prices have largely been on a downward trend since 2013. But they are now appear to be on the turn with energy companies and economic consultants recently warning that companies can expect 5-10% rises over the next 12 months, partially as a result of the collapse in Sterling since the vote to leave the EU. Meanwhile, non-commodity costs now make up more than half of the power bill – and are set to rise steeply over the next few years as the cost of renewables support ramps up, along with the costs of balancing the system and ensuring security of supply through the capacity market. Simultaneously, uncertainty over the terms on which the The rise of non-commodity costs UK leaves the bloc is starting Non-commodity costs are predicted to make up about two thirds of the total power bill to affect business confidence by 2020. Next winter, businesses may face significant non-commodity cost increases and expenditure, according from the capacity market charge. Meanwhile, the cost of the renewables obligation to the bank of England’s is predicted to increase by about 20% for 2017-18 with small scale Feed-in Tarif costs latest inflation report. simultaneously set to increase by more than 10%. Levies for the government’s contract Those factors could lead for diference scheme, while currently a small charge, are set to increase fivefold businesses to refocus on good next year. As a result, businesses can expect to see double-digit price increases in husbandry – and make energy the next few years. This may encourage UK firms to refocus on energy eficiency. efficiency investments more attractive. That is, however,

26 December/January 2017 theenergyst.com Sponsored column Latest report on demand side drive

Need for rapid returns: An Almost nine in 10 providers A
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of demand side flexibility are established by the government to satisfied with the results of the provide an insurance policy against energy manager’s view arrangement, while 85% of the possibility of future blackouts, An energy manager at a large high street retailer told The businesses say the main reason 
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hopper with other projects, all of which are judged on how Responsive Annual Report, were observed in 2016 compared quickly they pay back.” drawn up by National Grid. with the previous year. These are the While projects must stack up financially, he says other periods when peak winter national benefits, such as year-on-year carbon reductions and other The Power Responsive programme demand is forecast and businesses environmental considerations, are also important to making was set up by the System Operator reduce their consumption, reducing the business case. in 2015 to increase participation overall network charges as a result. in various forms of demand-side ))58*/4-
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So far, he says that approach has proved successful and flexibility within the UK’s electricity in demand-side flexibility appears to the firm managed to reduce energy bills by 4.8% in 2015-16, markets. be money well spent. For example, the largely due to LED lighting projects as well as “administrative National Grid uses the term ':/54'2
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tidying up of our portfolio”. demand side flexibility to include advises government on pressing However, he says “the business now wants to undertake demand-side response (DSR), where infrastructure challenges. It predicts a number of other capex projects, which will squeeze the businesses increase, decrease or shift that flexible demand could help energy efficiency projects for electricity consumption in response to contribute to consumer savings of faster paybacks”. a signal, as well as other categories of up to £8bn a year by 2030. This is While the competing flexible response, such as distributed calculated based on the reduced need projects – such as marketing generation and storage. to build new conventional generation or sales promotions – may Demand side flexibility allows and network infrastructure. have estimated paybacks and businesses to save money and varying degrees of success, If I make a request earn extra revenue. It is becoming Trusted partner the business views them increasingly important as the energy Bath NHS Trust is one of the as core because they will for £1m in funding, system moves away from its reliance businesses benefitting from demand- ultimately drive sales. it goes into a on fossil fuels. It also gives National side flexibility. The Trust uses its With energy efficiency Grid the tools to manage the system in existing standby diesel generators projects “our ROI is pretty hopper with other a more responsive and efficient way. to take part in the Short Term much guaranteed, as long projects, all of The recent report explores the Operating Reserve (STOR) and Triad as the calculations are done which are judged activities of Power Responsive in management with overall benefits of correctly and the business its first year and looks ahead to @  &
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simply do not have the data. he says, blew “a gaping hole financial year 2015/6, of which 4% warnings to its stores during Triads to in Esos”. Meanwhile, beyond was specifically on DSR. In the past, a reduce electricity use. greater percentage would have been Esos and bad data the top tier of I&C companies, spent contracting power stations to To explore the full version of the Mervyn Bowden performed “the majority of companies do come on or off the grid when needed report, go to powerresponsive. a number of Esos lead not have half hourly equivalent A
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com/updates. A short assessments. He estimates gas metering, so you have no spend on demand-side flexibility of version of the report will also that 90% of the buildings chance whatsoever of working £286.68m be available shortly. he helped to audit had out how efficient they are”. insufficient metering. John Mulholland agrees that “You physically could is a critical issue. “I didn’t see What is Power Responsive? not do a meaningful any half hourly data on gas for It is a stakeholder-led programme facilitated by National Grid to energy profile without any of the 36 Esos audits that increase participation in the different forms of flexible technology. that metering,” he says. I did,” he says. This means if 
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There were two main there are multiple gas users commercial businesses into a mainstream opportunity by types of missing meters, and no sub-metering then 2020. To find out more visit powerresponsive.com, email says Bowden: those between estimates of gas breakdown [email protected], join the LinkedIn Power landlords and tenants; and have to be made. This lack of Responsive group or look out for #powerresponsive on Twitter. half hourly gas metering. data then adds a risk factor “There is an urgent need for into recommendations”. te thetheenergyst.comcom ENERGY EFFICIENCY

Just as you can’t throw anything but a double six here, there can be no losers if every Esos audit is deemed acceptable Esos: a frank assessment from a lead assessor Consultant John Mulholland was at the coal face of the government’s flagship energy efficiency scheme as a lead assessor. He shares his thoughts on the scheme’s shortcomings and how it could be improved ahead of the next phase

his is a perspective organisations, most of my definitely vary in standards on Esos from the time was spent doing Esos on who qualifies as a lead front line. In 2015/16 energy audits. I do not regret assessor. Not all lead assessors’ TI acted as a lead this experience as it has given registers are the same. assessor for four organisations me new insights into how Because of the different and I conducted 36 Esos To put it in plain some companies manage, entry/qualification energy audits – all with a site English, 65% failed or do not manage, energy requirements for each register visit and a report. Sectors at the first attempt. as well as being in a better there is a difference in quality covered manufacturing, Who signed of all position to assess the audits of lead assessors. In Esos chemical processing, of others as a lead assessor. Newsletter No 3, it gave the distribution centres, these non-compliant It also put me in an results of 51 compliance audits retail, offices, a housing assessments/audits? informed place to comment on selected at random by EA. association and transport. The answer is lead the whole Esos process with Of the 51, not a single audit I began my career 42 years assessors. So they its strengths and weaknesses failed – 35% passed and 65% ago as a chemical engineer and lessons to learn for 2019. passed with “remedial action”. conducting energy audits in were clearly not up Or to put it in plain English, process plants. So I assumed to the job Not all are equal 65% failed at the first attempt. my experience in energy In the run up to Esos, the Who signed off all these management would be best Environment Agency published non-compliant assessments/ used in the lead assessor the registers approved to have audits? The answer is lead role. While I did so for four lead assessors. The registers assessors. So they were

28 December/January 2017 theenergyst.com clearly not up to the job. It energy audit, with minimum needs to be rigorous selection should be right first time as standards of entry and having of very experienced lead this is what they are paid to show examples of energy assessors for this vital role of to do. Clients should accept audits they have personally assessing Esos compliance. nothing less. Theoretically conducted. In healthcare, a In healthcare, There are some lessons to their lead assessor had put hospital porter would not be learned from the world them at risk of prosecution. stand in to do the job of a hospital porter of international standards a specialist nurse so why would not stand such as ISO 50001. For a No experience needed should it be different in the in to do the job of company to get certification In the EA Esos guidance world of energy auditing? a specialist nurse to ISO 50001 it has to meet notes, it was implied that lead It could be argued the key levels of conformity in its assessors would personally government was so slow so why should it energy management system conduct most of the energy to get Esos operating that be diferent in the to the requirements of ISO audits. However, it did not there was barely time to get world of energy 50001. Who decides this? An matter to EA who did the lead assessors registered, let auditor from the certification actual audits as they all had alone a registration scheme auditing? body who is accredited to to be reviewed and signed off for energy auditors. But assess and recommend for by a registered lead assessor. there is no excuse in the run certification to ISO 50001. In reality, an army of up to 2019. The auditors The recommendation is then unqualified and inexperienced should individually pay an reviewed by the certification people were used as energy annual registration fee like body, which itself has to be auditors. A number were new lead assessors. This would accredited by the national or unemployed graduates or be self-funding via existing accreditation body in the non-graduates and told to lead assessor registers. country. In the UK this is the go and do energy audits. United Kingdom Accreditation The logic of the EA was Assessing auditor compliance Service (Ukas). In addition, that everything had to be The EA appointed contractors the individual auditor from supervised, reviewed and to check a sample of Esos the certification body sent signed off by the lead assessor. assessments to make sure in to conduct the external However, if the lead assessor they were complaint. Who audit and assessment has to was not competent, how could would be the best qualified be qualified with sufficient they supervise the work of to do this sort of checking experience in ISO 50001. others – particularly if they, of work? I would suggest So quality is built in at in turn, were not competent? qualified and experienced every level. Sadly this is Also a number of lead assessors Esos lead assessors who were missing in the Esos process, conducted no energy audits active in 2015 and who have with the inevitable results themselves, so how could they direct experience of personally that the majority of Esos assess the work of others? conducting and writing at least. audits appear to be non- Everything hinged on But how many of these compliant or compliant quality, experienced lead contractors meet these with remedial action. assessors, who had personally suggested criteria? The answer Because of the use of conducted Esos-compliant is I don’t know. But the reason unqualified and inexperienced energy audits and therefore I am asking the question is energy auditors, there was a were in a position to assess that I have seen ‘compliant’ race to the bottom on price. the audits of others. Esos audits in 2016 that have So I found myself working There was an additional been passed as satisfactory at day rates lower than I problem of Esos sales by those contractors but worked for 25 years ago. people under-selling Esos are actually non-compliant The clients were partly to as they had no idea of the with Esos requirements. blame. A number of my Esos time it takes to visit sites, Why would a contractor proposals were rejected on collect data, analyse it and pass an Esos audit as price but I do wonder if the write a compliant report. satisfactory when it is non- cheaper option selected by the Perhaps Esos sales people compliant? Either they did client resulted in a compliant should do an Esos audit not know the audits were Esos energy assessment/ before trying to sell one. non-complaint (in which audits. I doubt it. The result The salesmen slept well at case the contractor is lacking of poor auditing is poor night while the auditors experience or incompetent) quality recommendations lost sleep to put in many or they did know (in which which cannot be acted on. extra unpaid hours. case the contractor was For example, in a number I think there should be a somehow corrupt). If we of so-called compliant rigorous registration scheme are charitable then we have audits, I noticed there was for anyone conducting an Esos to say the former. So there no estimated or actual » theenergyst.com December/January 2017 29 ENERGY EFFICIENCY

breakdown of electricity or of John Ruskin: “It’s unwise of deadlines were announced gas by end use. This means to pay too much… but it’s earlier or companies availed significant energy use is not worse to pay too little.” themselves of the opportunity. identified (a key requirement) When you pay too much, but more importantly, it is you lose a little money – that Routes to compliance impossible to make a specific is all. When you pay too In 2015/16 most companies recommendation unless you little, you sometimes lose selected Esos energy audits as know the ‘before’ and ‘after’ everything because the thing a route to compliance. Only kWh quantities are known. This you bought was incapable of 6% selected ISO 50001. As is needed to calculate savings doing the thing it was bought an experienced practitioner in kWh/cost and payback (a to do. The common law of in ISO 50001, I think this is minimum key requirement) business balance prohibits a good route to compliance. for each opportunity. paying a little and getting a There was a myth surrounding So one reason some lot – it can’t be done. If you ISO 50001 in 2015: that there recommendations will not deal with the lowest bidder, it were not sufficient certification be implemented is that the is well to add something for bodies to cope with demand. recommendations themselves the risk you run. And If you In fact there were more are so poor. This is the fault do that, you will have enough than sufficient and some of the auditor, the fault of the to pay for something better. certification bodies reported client for paying for a poor to me that they were kicking audit and the fault of the lead Exercising proper authority their heels awaiting the assessor for signing it off. I am surprised at the number I personally know predicted demand which never And having paid for a poor of companies that have of consultants materialised. I conclude this audit they cannot implement totally ignored Esos and not was a self-fulfilling prophecy. the recommendations, even a single company has yet who had nervous I suggest the real reason if they wanted to do so. been fined. The EA said it was breakdowns or companies did not select the Much has been said about initially taking a “light touch” worse as a result of 50001 route is that they had companies not having the approach. Many companies the pressure. Some left it too late. No doubt more will or allowing the capital to and consultants worked companies will use ISO 50001 implement recommendations. extremely hard in the run up to of this pain could as a route to compliance in But this assumes all the the 5 December 2015 deadline. have been avoided 2019 but only if they start recommendations are sound I was working a 20 hour day if the extension the process in 2017/18. and of good quality. It appears in the last two weeks to meet I think it was right of the that many were not. The deadlines and I personally of deadlines was EA and Decc to exclude other companies need to take some know of consultants who had announced earlier or schemes and standards, such blame for buying cheap audits, nervous breakdowns or worse companies availed as ISO 14001, as routes to which they assumed would as a result of the pressure. themselves of the Esos compliance. They simply be compliant but were not. Some of this pain could have are not focused enough. I am reminded of the words been avoided if the extension opportunity The idea that DECs and John Mulholland’s key recommendations 1) Lead assessor registers Esos energy auditor should be registered writing reports to demonstrate competence By mid 2017 all lead assessor registers unless they are already registered as a lead in the very things they are assessing. Also should weed out lead assessors who have assessor. They need to have the correct companies should not be contracted to no experience as both lead assessors minimum qualifications/experience and this task. It should be left to individual lead and Esos auditors. Those on the register provide evidence of competent by supplying assessors. should show evidence of competence and evidence of audit reports they have experience in 2015/16. All seriously non- conducted. Their name and signature should 4. EA using authority to fine non-compliance compliant Esos audits should be publicly be on each audit report along with that of the Having taken a ‘softly-softly’ approach named by the Environment Agency along Esos lead assessor. Auditors will be stuck off if in phase one, this should be abandoned with the name of the lead assessor and they perform badly. in phase two. The EA should publish the register and the company involved. If a compliance dates with an escalating tariff register has lead assessors who consistently 3. Compliance assessment auditors of fines for non-compliance and ensure underperform, EA should remove their There should be a stricter criteria for those non-compliant companies are fined and approval. Individual lead assessors should working on behalf of the EA to assess publically named. On our road we have a be struck off if they perform badly. compliance to Esos. These should be residents’ parking scheme. The only reason competent and experienced lead assessors it works is that the council issues fine notices 2. Esos energy auditor registration with practical experience in both lead on cars that are non-compliant. The fines By mid 2017 anyone wanting to be an assessor role and doing Esos audits and raised from Esos could partly be used to

30 December/January 2017 theenergyst.com Green Deal Assessments should be used as a route to compliance was clearly wrong and I hope they are excluded in 2019. Display Energy Certificates (DEC)s are used mainly in the public sector who are not in Learn from Esos – perhaps the civil servant yesterday, live for specifying this did not realise today, hope for this fact – or was badly advised. A DEC is not the equivalent tomorrow. The of an Esos energy audit. important thing is not to stop Qualification for Esos The criteria of qualification questioning for Esos was number of Albert Einstein employees and turnover. This led to some very odd situations. I think an additional criteria should be that only those with an annual energy expenditure in excess of £300,000 (including transport) in the qualifying year should reduction in energy a report with opportunities Germany holds more than be in Esos. This would consumption. I thought are put in front of a director 50% of global certifications. overcome these anomalies. this was an error and that it then they will implement I accept everyone was A final question: “What is meant 7% – but no, it was them. By and large, we know going up a learning curve in the purpose of Esos?” Apart 0.7%. A reduction of 0.7% is this is not the case. He said 2015 on Esos with inevitable from the obvious answer an unambitious target. This the end result of directors shortcomings. But now the that it was the UK response figure has now been removed implementing measures lessons are learned there to Article 8 of the Energy from V5 of the EA’s Guidance should be the starting point is no excuse to repeat it all Efficiency Directive, the on Esos (2016) but that was with fiscal incentives and again in 2019. With that answer is to significantly the original intention. removal of barriers. Then in mind I will end with a reduce energy consumption A consultant friend said work backwards and build a quote from Albert Einstein: by the identification that the problem with Esos scheme that will lead to this “Learn from yesterday, live and implementation of was that it focuses on the outcome. He has a point. The for today, hope for tomorrow. opportunities. The initial process rather than the desired Germans do this successfully The important thing is not target by Decc was 0.7% outcomes. It assumes that if with ISO 50001 and as a result to stop questioning.” te reduce or waive Esos registration fees to Remove DEC and Green Deal Assessments stump when felled, and management companies that comply early before the as routes to Esos compliance. of commercial forests and woodland, a deadline to stop a last-minute rush like in sustainable supply of locally sourced wood 2015. It is said this won’t be repeated in You might ask how these recommendations fuel can be achieved. Of the 790,000 acres phase two because companies have four will be funded? Some cost nothing. Anything of woodland in the South East and London years notice. I wonder. Actually it is three to do with registration should be paid for area, currently only 46% is managed, leaving years, as one year has passed. by the Esos registers who charge large 430,000 acres for which there is no long- amounts from individual lead assessors term management or economic use. 5. Criteria for qualification in terms of annual subscriptions. The rest The CHP plant will provide owners of Add an additional qualification to Esos could be funded by the fines, which should woodland with the certainty required to participation of an annual energy be imposed on the 1,200 organisations that manage their woodland efficiently and to expenditure of more than £300,000 were in Esos and did nothing. In my view, the realise their full and economic potential. (including transport). This will reduce the EA has already made millions in savings to The plant will prevent fossil fuel carbon burden on the smaller of SMEs and small the taxpayer by getting Esos participants to emissions that would have come from the companies that fall under Esos due to pay for the role of their lead assessor instead burning of gas for heat, and from the burning anomalies in turnover. No doubt a lawyer of getting its own staff to do this work of of (primarily) gas or coal for electricity. The will tell me why this logical step is not checking compliance. plant will prevent more carbon emissions, possible. Through the management practice of tonne for tonne, than a heat-only biomass coppicing, which harnesses the regenerative boiler by replacing carbon-intensive 6. Route to compliance capacity of the trees to regrow from the electricity from the grid.

theenergyst.com December/January 2017 31 FINANCE Directors ‘right not to spend cash on energy efficiency’ Energy efficiency isn’t a priority for many board directors, who would rather spend company cash on revenue-generating activities. They are the smart ones, Capitas Finance energy efficiency specialist Jason Hunter tells The Energyst

inance remains the stage for fi nance – rather like the £7m Green Business Fund, biggest perceived barrier IT industry was 25 years ago. administrated by the Carbon to energy effi ciency Many people don’t realise the Trust and funded by a fi ne Finvestment among small different types of fi nance that levied on E.ON for failing and medium-sized enterprises are out there, because the larger to meet advanced metering and the public sector, according banks tend to focus on larger targets, by way of example. to a survey of company managers transactions where they will “[The fund] offers SMEs a high and directors conducted by bespoke the terms of the fi nance level energy audit. If they decide The Energyst (see p12). on each individual project.” to implement recommendations, Apathy at board level and But Hunter says smaller they receive 15% of the cost of the distrust of claimed savings are fi nanciers are now trying to tap capital equipment as a grant,” he also signifi cant hurdles for those into the SME market, working says. Combined with proper use trying to implement energy with vendors to provide fi nance of Enhanced Capital Allowances, effi ciency improvements. for projects as small as £10,000. businesses can fi nd ways to turn While anecdotal evidence energy effi ciency investments suggests continued reluctance to They simply don’t Impact from SMEs into a “cash boost”, says Hunter. fund energy effi ciency measures believe what they “We believe the biggest impact “So there is progress and via third party fi nance, Jason are being told by on energy effi ciency and carbon [compared to corporates] it Hunter, associate director of reduction in the UK is going is much simpler for SMEs to the energy effi ciency division the vendors and to come from SMEs rather move forward and eliminate at Capitas Finance, reckons the suppliers and than large scale businesses.” a large part of what is often spending cash reserves on solutions providers That may be true. But if a signifi cant overhead.” non-core business is foolhardy. SMEs don’t trust the savings For the corporate market, “We are fi rm believers promised by technology vendors Hunter accepts that not all Guaranteed savings that if a company has capital and don’t appear enthusiastic Esos audits are made equal. He Hunter thinks presenting fi nance available, then they should about taking on fi nance, how is understands the calls for Esos directors with guaranteed be deploying that on their the situation going to change? to be ‘given teeth’, but says he is energy savings that are cash core functions,” he says. On the fi rst point, Hunter is “not a fan of forcing people to positive from the outset enables Keeping cash to enable confi dent. “We guarantee the do things”. Instead, he hopes the businesses to go further in the business to capitalise on savings. If your project predicts shift to half-hourly metering will cutting energy and carbon opportunities makes sense, he a 25% saving on energy and equip businesses with the tools to consumption. Naturally, the adds. However, if fi nance can you only see 10%, we work make themselves more profi table. fi nancier believes the UK’s 5.2 be used to produce guaranteed with a global insurer which “If you have half-hourly million SMEs, not to mention energy bill savings, why will make up the difference.” metering, you have better data, the 9,000 corporates with an do so many organisations Hunter claims vendors and if you have better data, Esos audit “gathering dust”, appear reluctant to use it? incorporate the “very small” you can make better business should reevaluate their options. Hunter, a former head of premium for that insurance decisions that will end up saving commercial planning for Mittal into their margins, so that you money,” he says. “If you can Steel’s European operation, for end users “there is very make payments [for equipment] says boards are also distrustful little extra charge, if any”. out of the savings delivered, it is of promised savings. “They If something sounds too good also costing you nothing upfront. simply don’t believe what to be true, it usually is. Hunter To my mind, that is a far better they are being told by the admits overcoming disbelief is way to lead the conversation.” te vendors and the suppliers and “the biggest problem we have” Many companies are solutions providers,” he says. in getting fi nance deals away. Capitas has produced a free reluctant to fund energy Another barrier is “complexity,” But he thinks the tide is guide to third party energy efficiency measures Hunter acknowledges. “Energy starting to turn in the SME ef iciency finance, available using third party finance effi ciency is at a very nascent market and points to the at http://bit.ly/2hsJUwc

32 December/January 2017 theenergyst.com

DEMAND-SIDE RESPONSE Grid mulls rolling all frequency response services into one

National Grid may consolidate its fast balancing programmes, a move that aggregators say makes sense. Brendan Coyne reports

ational Grid has around understanding regional mooted rolling variances in system inertia, and together its fastest how a loss of input (a power Nsystem balancing station or interconnector) in one programmes into a single location affects other locations. pre-fault service. The system National Grid needs “When the France operator shared its thinking fast response, so it interconnector goes down, on simplification of balancing makes sense to roll it gives the system a kick, services at the Storage Working the bulk of that into the disturbance propagates Group meeting in December. through the GB system and the End-users and demand- One frequency response the FFR tender [required] response varies by response providers have urged service to rule them all? location,” explains Martin. “If National Grid to simplify the Torness [EDF’s 1.3GW nuclear market in order to make it easier service. Most EFR comes from “Basically, frequency moves station in East Lothian] tripped, for them to participate. For its batteries and providers have fast and the lighter the system, that would give the system part, National Grid requires to deliver in under a second. the faster it moves. EFR is a a kick in a different location a greater volume of system partial response to that – it [and create different knock-on balancing from demand-side Logical approach... responds more quickly than effects in other regions].” parties as renewable generation While National Grid has stressed FFR. But the end game is to The team is trying to work pushes thermal plant off the that it has not yet decided respond directly to the speed out how these disturbances system, reducing inertia. when or if it will combine all of movement of frequency affect each other and develop The Firm Frequency Response frequency response mechanisms rather than waiting for it to get systems that can determine (FFR) and Enhanced Frequency into a single service, market to a particular level [the 50Hz which resources to deploy based Response (EFR) mechanisms participants believe that deviation trigger point].” on a better understanding of pay generators and demand- represents a sensible approach. the effect on regional inertia. side providers, usually but not Alastair Martin, co-founder Get your RoCoF exclusively via aggregators, to and head of strategy at Martin believes this will Get involved quickly adjust load or provide aggregator Flexitricity, said it ultimately require a RoCoF- While some industrial power to help balance the was a “perfectly logical thing based frequency response companies have signed up to system when it deviates from to do”. However, he adced: service. That is, Rate of Change the trial “and hopefully a water set trigger points around 50Hz. “It’s not the end of the story. of Frequency – and the firm company, some cold storage This usually happens when a EFR is basically fast FFR that is involved in a project with and CHP as well”, Martin says generator or interconnector contains some concessions National Grid, called Enhanced more participants are welcome, drops out. They pay the for batteries. National Grid Frequency Control Capability, particularly those already highest rates of all National needs fast response, so it to work out how to get there. providing frequency response, Grid’s balancing services makes sense to roll the bulk Also involved in the project as this service, while similar in available to the demand-side. of that into the FFR tender.” are Centrica, which brings a terms of speed of response, is FFR providers have to large-scale CCGT into the trial; based on the speed of the change respond to a frequency event ... but not end game GE Grid Solutions, contributing in frequency, rather than the within 10 seconds. There are However, said Martin, neither control systems; and the magnitude of that change. two forms of FFR – static and of those services address the universities of Manchester “We are trialling different dynamic. The former requires growing inertia problem in and Strathclyde, which are options for industrial and providers to reduce consumption the system. “So you will see involved in “technical puzzle commercial customers to while the latter requires services which respond not just solving”, according to Martin. provide RoCoF. We are looking flexibility in both directions. to frequency, but to the rate of Solar and battery developer for diversity of geographic Enhanced Frequency change of frequency, which is the Belectric is also on the team, location and diversity in Response is the fastest signal that shows you that inertia as is a wind farm operator. the type of response they dynamic frequency response is failing to keep up with events. Much of the trial revolves can provide,” he said. te

34 December/January 2017 theenergyst.com GAS & ELECTRICITY Entering the prosumer age

John Langley-Davis, product marketing manager – energy at Schneider Electric, argues that smart technology is the key to turning consumers into prosumers

ith the emergence ways to save energy Key to information and tools, including control messages to individual of smarter this is greater investment into the provision of advanced household appliances such as technology, demand management and metering infrastructure water heaters or car chargers, Wconsumers can energy efficiency. In the UK, (AMI), namely smart requiring the infrastructure to now make more informed the government is currently metering technology, and the be fit for purpose for balancing choices about energy usage consulting on how to implement implementation of automated the grid and administering and become energy producers smarter energy systems, demand response (DR) services. the commercial element and storers themselves through which our ageing In most countries smart of the energy tariffs. – known as ‘prosumers’ infrastructure may finally be meters serve as the point of – resulting in a two-way overhauled in order to enable engagement for consumers A competitive edge directional flow of power. greater efficiency. Moving to a and the utility, providing them Implemented together, these Across Europe, there are three new model potentially including with more information on their tools and services allow utilities million of these prosumers, distribution system operators energy consumption across to help their customers identify with room for many more. (DSOs), the network will be various interconnected devices, and implement energy-efficient City districts, educational better served by the willingness and lets them participate in projects to reduce their energy campuses, military bases, of prosumers to limit and alter DR programmes. DR then consumption and bills. This hospitals, commercial buildings, their energy consumption occurs when a grid operator can provide utilities with a factories and residential for periods at a time. identifies a consumer who is competitive edge, increasing homes alike are becoming If the government decides using a large amount of energy customer satisfaction, loyalty proactive energy prosumers. to adopt a DSO model, as and asks them to limit their and retention, reducing delayed In the UK, community long as prosumers are a key consumption – often through repayments and creating new projects based in towns across consideration – catered for an automated process and often markets for potential services. the country are co-operatively and kept engaged – there is in exchange for an incentive Yet, they also enable providers harnessing owned renewable an opportunity to balance such as discounted prices. to orchestrate and manage energy. The Brixton Energy local grids, increase the The much-maligned UK energy consumption, increasing community in south London reliability of power, improve smart meter rollout is further or decreasing demand where is one such not-for-profit customer retention and cut complicated when you consider needed through commercial co-operative. It owns its own costs more easily. These factors that the useful data and mechanisms and automated DR solar power stations in Brixton. are crucial for both growing control ability currently resides and shifting loads to mitigate While Wolverton Community business and satisfying primarily with the energy peak power. Ultimately, they Energy society in the Wolverton environmental obligations. supplier rather than the DNO allow utilities to provide more and Milton Keynes area is However, consumers or DSO. Deploying DR services reliable power where and when it taking a long-term view must first be encouraged and at a large-scale residential level is most needed, as well as make towards being self-sufficient empowered with the right will require the ability to send better use of their existing assets off-grid, by working with and add new low-cost systems individuals and businesses in to their portfolios as opposed the area to help them become to the expensive construction more energy efficient. of new energy sources. For prosumers, the promise Infrastructure fit for purpose of new, interconnected While the demands of informed, technology has the potential proactive energy users may to satisfy the desire for greater appear daunting at first, there control over their energy usage are many opportunities for and turn them from passive into providers. Where once utility active participants, embedded companies were forced to within the energy infrastructure. build an increasingly expensive For utilities, the prosumer infrastructure and fire up more revolution represents an generators to keep pace with exciting opportunity to offer customer demand, prosumers new services, manage assets and are leading them down a less Have your cake: Wolverton Community Energy society is helping bring another layer of stability costly path, looking for new local individuals and businesses become more energy eficient to modern grid constraints. te theenergyst.com December/January 2017 35 GAS & ELECTRICITY Red zone alert: How DCP228 could affect energy bills

Ofgem is making key changes to distribution charges via its ‘DCP228’ directive. This will affect most businesses and potentially increase costs for many, says Inprova Energy director of account management Paul Garratt

fgem is changing extra high voltage) connections When, what, how? the Common will be affected the most. As a result of the requirement Distribution Despite these changes, for a 15-month notice period OCharging red periods will still accrue prior to any new charges, the Methodology (CDCM), higher charges than amber earliest possible implementation which determines how and green periods, meaning date is April 2018. The latest distribution charges are the incentive to manage DNO rates were issued in calculated. Dubbed ‘DCP228’, consumption at peak periods December 2016 and these will these regulatory changes are will remain, although the provide a clearer idea of the scheduled to be implemented cost benefi t will decrease. potential cost implications.. no earlier than April 2018. According to Ofgem, the This is the time to re-examine Distribution charges currently change may “have large the economic case of existing account for as much as 19% impacts on customers”. Its strategies to reduce peak time of a customer’s bill. The major working group estimates consumption and create new distribution charge is the that some customers could power consumption strategies. Distribution Use of System face signifi cant increases in Third-party non-energy (DUoS) levy, which relates to distribution costs. This will charges, such as distribution usage. This is calculated using vary by location and DNO tariffs, make up as much as a banded tariff and there is area but Ofgem states that half of today’s business energy currently a much higher tariff for “the general pattern is that bills and are set to rise from usage during the peak ‘red’ band distribution charges for a number of other quarters, period, which predominantly domestic customers will fall, including capacity market relates to evening consumption. but those for non-domestic costs. This is making business The current system generates customers will increase”. energy more expensive. a large portion of revenue from It is certain there will be While there is limited room premium pricing on the peak There is currently a much winners and losers. Businesses for manoeuvre in reducing these ‘red’ time band. Under DCP228, higher tariff for usage during that have invested in demand non-commodity costs, businesses charges are to be scaled more the peak ‘red’ band period management measures to do have more freedom to control accurately so that the costs are shift load away from their wholesale energy distributed across all three time peak times may costs. Moving from bands – green, amber and red. be particularly fi xed to fl exible It is argued that this will more disadvantaged. contracts might accurately refl ect the incremental It will be the Distribution These provide the costs of reinforcing the network. Network Operators (DNOs), organisations 19% best protection which own and operate the may have The amount distribution against Who will it af ect? distribution network that invested charges can account future market The CDCM governs how brings electricity to homes and in onsite for of a customer’s fl uctuations by domestic and business businesses, that will determine generation energy bill allowing energy to customers connected at low the charges in their area. For or energy be contracted over and high voltages are charged, most DNO areas, red band unit storage to avoid a period of time rather so this change will affect these rates will fall but the amber premium costs; or than fi xing at one point. users. However, the modifi cation and green rates will rise, likely made operational changes Businesses should also put will not change the UK’s larger leading to a net rise for half to reduce the actual demand energy demand reduction at electricity connections whose hourly electricity customers at these times. As such, the top of their agenda and charges are scaled under the with a spread of consumption Ofgem’s changes may cause employ effi ciency strategies Extra High Voltage Distribution across the day and night. disruption and dent anticipated that can generally reduce Charging Methodology. Those with HV (excepting returns on this investment. bills by 5 to 20%. te

36 December/January 2017 theenergyst.com

GAS & ELECTRICITY Energy ‘black hole looms with costs set to spiral’

Companies risk “sleepwalking into an energy black hole” as a result of rising oil prices, increasing non-energy costs, the low pound and the onset of winter, according to energy procurement firm Businesswise Solutions

ost companies do not realise they EXAMPLE: CUSTOMER SPENDING £1.8M ON POWER face increases of 2016 2017 2018 up to 30% per M RO (Renewable Obligation) £ 354420.5 406059.5 427670.5 year in energy costs from next year, warns Businesswise % increase 15 21 Solutions managing FIT (Feed in Tariff) £ 118291.8 126253.8 127391.2 director Frazer Durris. He says: “We hear a lot % increase 7 8 about the pension black hole CM (Capacity market) £ 3412.264 193361.6 85306.61 but I’m concerned about % increase 5567 2400 the energy black hole. The Durris: act now to mitigate the combination of the low pound; CfD (contract for difference) £ 11374.21 68245.29 121704.1 risk of rising costs uncertainty over Brexit; rising % increase 500 970 wholesale energy costs, some import a lot of our energy from fundamental changes in non- Total £ 487498.8 793920.2 762072.4 Europe and the low pound energy costs and the onset of % increase 63 56 means it’s costing us more.” winter have created the perfect Source: Businesswise The firm advises companies storm and the potential for an to act now to mitigate the risk energy black hole to appear on the bottom line for both Furthermore, National of rising costs. “They need on company balance sheets. large corporations and smaller Grid’s procurement of standby to look at how they buy their “We buy and manage owner-managed organisations power to manage dwindling energy and ensure they have a energy for companies that and it is vital, now more winter capacity margins will robust management strategy to typically spend between than ever, that future energy also pile on the pressure. offset the impact,” says Durris. £100,000 and £20m per strategies for these operations “All these costs have to be “Basically they need to annum. If the customer is are discussed at board level.” paid for,” says Durris. “The lower the premiums they’re spending £5m on energy it Durris says wholesale prices other big factor is the low paying to suppliers, look wouldn’t be uncommon to see have risen significantly in value of the pound, which is at how they manage it and an increase to £6.5m a year the past few months, with oil having a big impact on the make a concerted effort to from 2017. It puts pressure prices also on an upward trend. wholesale energy price. We reduce consumption.” te Bergen and UX rolled into global mega brand S fuel giant World US consultancies US Energy, core customer propositions. management expertise to Fuel Supplies has KTM and Beachfront It also promoted end-to-end diverse organisations and Ubrought together Energy have also been rolled sustainability services to assist in managing complex energy management and into the Kinect brand. meet carbon footprint goals. energy challenges on a procurement firms Bergen Announcing the move, “Kinect Energy Group local and global scale. Energi and The Utilities Kinect touted access to a reflects our commitment “We are committed to Exchange under a new global worldwide energy network, to sustainable energy solving energy challenges,” said brand, called Kinect Energy. as well as comprehensive solutions,” said Michael Todd Overgard, SVP of Kinect The firm acquired Bergen procurement and risk Crosby, EVP of the Global Energy Group. “Kinect Energy last year and fellow third management services to Land segment at World Fuel Group allows us to deliver on party intermediary The reduce energy spend and Services Corporation. “We our customers’ energy vision Utilities Exchange in July. increase predictability as are proud to provide energy for their operations.” te

38 December/January 2017 theenergyst.com Optimise your critical site efficiently and cost-effectively Register to receive your free copy of Mission Critical Power

missioncriticalpower.uk/subscribe ENERGY EFFICIENCY British Gas: £4bn energy efficiency opportunity…

UK businesses could cut billions of pounds from their energy bills by investing in energy efficiency, reckons British Gas Business boss Gab Barbaro. But he says they must think longer term to realise the prize. Brendan Coyne reports

K businesses the commodity cycle, which will because, as well as “10-20%” spend £20bn on go up and down,” said Barbaro. bill savings through energy energy, according “Business users have done a efficiency, they can generate Uto British Gas great job through procurement revenue by exporting excess Business boss Gab Barbaro. teams of managing down power. Meanwhile, he admitted, “There is a 10-20% energy pricing. But in reality the providers make higher profits. efficiency opportunity they huge value is taking control “The margins energy can realise. That is a £2bn- of your assets,” he added. suppliers make on industrial £4bn profit opportunity for “The amount of incentives and commercial customers are businesses,” he believes. that are beginning to develop very thin, sometimes negative,” Procurement departments now, through distribution said Barbaro. “But the margins have excelled in networks, National that can be made on energy extracting value Grid, government services [are better] and another from supply – a lot is benefit is that you end up with contracts, “but unaddressed.” a more engaged customer.” if we focus 20% Barbaro SSE chief executive Alistair [purely] on said energy Phillips-Davies was speaking commodity Potential energy efficiency Business users alongside Barbaro at the cost, then efficiency opportunity and broader have done a conference. He confirmed the we miss that businesses can services was great job through view that prices would rise. opportunity”. realise a “no regret” “On prices, people in Speaking at opportunity procurement teams this room are going to be the Energy Live both for business of managing down facing some issues. Short- conference in London, and for British Gas, pricing. But in reality term electricity prices for Barbaro pointed to earlier which is spending heavily balancing this winter are up predictions by Frontier to scale its energy services the huge value is 40-70%; gas prices are up Economics that power prices will business. Parent firm Centrica taking control of 15-20%; coal prices are up rise by 5-10% during the next 12 has stated that it intends to your assets strongly, driven by mixture of months due to Sterling’s fall. invest £1.2bn of additional Gab Barbaro currency and some scarcity “If prices are going up, the resources in distributed energy issues,” said Phillips-Davis. best way to manage that is to and power and connected “That is something take control of their usage. It is a homes up to 2020. people must consider lot more rewarding and a better Barbaro said customers carefully when managing investment than trying to predict win by investing in energy their hedging costs.” te … as power prices ‘set to rise 5-10% in next 12 months’ Power prices could rise by 5-10% translate to price increases in core energy said Huggins. “That will have a quite during the next 12 months due to the commodities that would inevitably result major effect” on power prices, he added, impact of Brexit on Sterling, according in significant hikes in power prices. though it might take a year or so to fully to one of Europe’s largest economic “All energy commodities are traded in materialise. consultancies. dollars or euros. We had seen increases While Huggins predicted a dip in UK Mike Huggins, a director at Frontier of 5-10% increases pre [Sterling] flash energy consumption of 1-2% in the next Economics, told the Energy Live crash, now we are seeing 15-20% 12-24 months, it would not fully mitigate conference that the fall in Sterling would increases on things like gas, oil and coal,” an increase in prices, he said.

40 December/January 2017 theenergyst.com

ENERGY EFFICIENCY ‘More low hanging energy efficiency fruit than ever’

M&S energy efficiency supremo Munish Datta says there is an abundance of opportunities for firms with a genuine will to cut energy consumption, carbon and cost. Brendan Coyne reports

arks & Spencer The energy efficiency business cases in order to head of Plan A tree is “getting heavier, access further low hanging and facilities with new fruit growing fruit. Doing so, he said, means Mmanagement all the time” that “a simple light has a Munish Datta believes the whole new perspective.” opportunities for energy Datta was speaking as part of efficiency are greater than a panel session that discussed ever, rejecting the old adage the impact of technology, “that the low hanging data and artificial intelligence fruit has been picked”. on energy management. Speaking at the The Curve’s However, he underlined that XEnergy event in London, people remain crucial to Datta argued that “the tree is deliver the savings promised actually getting heavier, with by smart technology. new fruit growing all the time”. “It is very easy to be seduced In 2006, the firm set a by technology and to think it target to reduce its energy will solve all of our problems. consumption per square foot Early gains were made from thinking,” said Datta. “There is But it is people that make by 25% and met it in 2012. easy wins such as lighting now a technology called LiFi technology happen,” said Datta. M&S has now achieved a 39% replacement, said Datta, which that can transmit data one “I would say that 25-30% of reduction, setting its sights on offered “instant returns”. hundred times faster, locally, the benefits gained from our a 50% reduction by 2020. However, he said retailers through LED lighting to technology deployment are Since 2012, it has sourced now have the opportunity to smart devices.” from training people to power from 100% renewable turn lighting into a potential Datta believes use them properly. sources for UK and Ireland revenue stream as well as retailers could That is easy to operations, increasingly from bottom line savings. leverage that forget in the AI on-site generation, and aims “To limit the purpose of technology 39% world we are to apply similar targets to lighting to providing purely to enhance looking ahead international operations. light is perhaps blinkered customer Reduction in M&S’ to, but it is key.” experience energy consumption Meanwhile, and potentially, per square foot since Datta warned increase sales. 2006 that technology “Suddenly, could potentially an energy efficient also create problems light, which is already for businesses that fail to It is very easy to costing you less to run, offers prioritise energy efficiency. be seduced by the ability to interact with “You cannot underestimate customers, influencing the how much more knowledgeable technology but I journey the customer is taking the general public has become would say 25-30% of through the store. Suddenly about energy and energy the benefits gained you have a revenue generation efficiency,” Datta suggested. from our technology case alongside the cost- “With the devices [mobile efficiency business case.” phones] that everyone walks deployment are Datta suggested energy around with, we are on the cusp from training people managers look at “hidden” of being able to know much properly business cases around increased more about the building that occupant comfort and revenue you are in, its energy use, air Munish Datta generation as well as efficiency pollution levels and so on.” te

42 December/January 2017 theenergyst.com

IT & DATA CENTRES From Atari games to climate change via 40% cooling savings at Google datacentres

DeepMind co-founder Mustafa Suleyman outlines how the firm slashed cooling costs at Google’s datacentres and its plans for Artificial Intelligence as a service en route to tackling climate change and global poverty. Brendan Coyne reports

oogle’s datacentre Going, going, gone: engineers were AI defeats world deeply skeptical that Go champion Gan AI that learned to ‘think’ by playing Atari games could cut data centre cooling You can learn really costs. But they were wrong. interesting linear It slashed them by 40% and versus exponential improved overall PUE by 15%. Datacenters consume about power eficiency 3% of the world’s power and curves that were the firm aims to sell its AI very surprising and learning as a service to more unintuitive to the of them – and into other power intensive business human operators sectors. But DeepMind co- that had been “Pre-Google, getting access on increasingly complex founder Mustafa Suleyman running the system to data was difficult, so we games. Earlier this year, is ultimately training the trained [the mind] with Atari the DeepMind AlphaGo mind he helped to build for some time games,” he said. “We created programme beat Lee Sedol, on bigger problems. a small world. All we passed 18 times world champion of “What is the state of the to the algorithm was raw the ancient Chinese game global environment? Eight pixels that describe what is of Go, four games to one in hundred million people have happening in any moment a televised event watched no access to clean water in any frame in the games.” by 250 million people. – and that is set to double They built everything The game, in which the over the next decade. Eight from scratch, said Suleyman, aim is to surround opponent’s hundred million people are with the goal simply to territory, has more possible malnourished – and yet a maximise the score. “We configurations than the third of the food we produce trained the algorithm to estimated number of atoms is wasted,” he told The play games, but to learn in the known universe, Curve’s XEnergy conference. new knowledge, not our according to Suleyman. “We would need 3.1 knowledge, limited as it is.” Now DeepMind wants to planet Earths to sustain the The algorithm, said apply its artificial intelligence global population at UK Suleyman, got pretty good. to bigger challenges. Climate consumption levels,” he said. In the Activision 1980 change, with carbon emissions “So there is a lot at stake.” classic Boxing, “it worked driven largely by energy out a clever trick where it consumption, is pretty big. All you can eat data could pin the opponent in Since DeepMind was acquired a corner – and from that Datacentres: the heat is on by Google three years ago, position there is no way out.” Power demand from it has all the data it can eat. Post-Google, feeding on datacentres is expected to But the feast was preceded AI contender: algorithm data, the algorithms became triple in the next decade and by a famine, said Suleyman. learns to box clever more powerful and took within the Google fleet, that

44 December/January 2017 theenergyst.com consumption is “non-trivial”, Suleyman: Next Suleyman noted. “So we phase for DeepMind were able to create a model is AI as a service that reduces the energy – and cost – required to cool The ability to shift Google’s datacentres by 40%.” The engineers, he said, loads to diferent “were very cynical about parts of the system, whether we could do that.” given the type of But DeepMind did, improving incoming compute overall PUE by around 15%. Now the firm aims to launch demand and the its optimisation engine as a temperature, service platform to other data actually allowed a centre operators and to power intensive sectors more broadly. much more flexible The overall objective and fast adaptive was to maximise PUE by response to the kind removing the heat from of conditions that incoming compute load as efficiently as possible while the datacentre team respecting known temperature were seeing at any and safety constraints. given moment Key to enabling new insight was “data, data, data”, said Suleyman, in two key areas: state data, such as sensor and meter data that describes the physical behaviour of the utility; and action data, such as “how many cooling towers are turned on, how many chillers are active the degree of confidence flow through the chiller it at any given moment, what in the suggested actions turns out that … the global are the set points of various delivering those rewards. energy consumed across pressure and temperature the system was actually valves, flowrates and so forth”. Machine learnings much more efficient. That threw up about 1,200 Insights gleaned from that “Finally, the ability to shift different state variables, and approach defied conventional loads to different parts of for each of those variables wisdom in three key areas, the system, given the type of were about 20 actions, according to Suleyman: incoming compute demand said Suleyman. Those were “The first is that more and the temperature, actually aggregated into about cooling equipment, not less, allowed a much more flexible 120 state representations brought to bear to run the and fast adaptive response to combined with a series of system turns out to be much the kind of conditions that the actions, both continuous more valuable. So if you data centre team were seeing and discreet, that would spread out load really thinly at any given moment,” said throw up suggested actions over lots of bits of kit and Suleyman. “And that turns to optimise PUE within safe run them all at a lower level out to be very valuable.” operating constraints. of capacity … you can learn The methods DeepMind “Essentially [it is] a very really interesting linear versus used for Google’s data centres general framework to solve exponential power efficiency are “inherently general, datacentre prediction,” said curves that were very large-scale optimisation Suleyman. “There’s a bunch surprising and unintuitive systems” that will work of state inputs, a bunch of to the human operators “reasonably effectively in a actions, and just like we did that had been running the wide range of environments” with Atari and AlphaGo, we system for some time. subject to enough appropriate are learning to correlate state “Second: higher flow isn’t data, said Suleymen. with rewarding behaviour.” always better. A lot of the “So we are really starting The aim was also to engineers believed that they to look at what this might maximise long-term reward should be concentrating look like as a service we over short-term gains and flow through the chiller a can bring to the market for the system to predict great deal, but if we put less outside of Google.” te theenergyst.com December/January 2017 45 IT & DATA CENTRES Driving energy efficiency

Data centre infrastructure management can improve energy and capacity efficiency. Florence Burnoud, head of global service assurance for Atos, Managed Services and Philippe Heim, Siemens Global DCIM portfolio manager tell The Energyst about the benefits of working in strategic partnerships

ndustry, commercial Bridging the gap between and public sector IT and facilities processes organisations rely heavily could transform data centre on instant access to I operations online information to support working processes, productivity and the security of data. Research shows that in 2014, 60% of organisations suffered downtime with consequences including loss of revenue cited by 34% and loss of customer confidence cited by 29%. In fact, data losses and downtime cost of enterprises around the world amount to £1.36 trillion in 2014, with an estimated cost ensuring the security, reliability and improve energy efficiency; “Atos had a variety of different of £4,500 per minute. It has and continuity of its customers’ as well as increase process asset management tools, been predicted that by 2024, critical business information efficiency, accommodate rapid products and spreadsheets and business servers worldwide will and resources and providing change and also the demand we needed a tool that could pull process each year, the digital fully managed services to clients to increase IT service revenue. them together in the right place data equivalent of a stack of across a wide range of industries. Sitting at the core is the to help make timely, accurate books extending more than 4.37 Atos, based on its natural division between decisions. We also wanted to light-years to Alpha Centauri, competences and knowledge in IT services and facilities as improve our asset management the closest star system to our running these data centres, each tends to function in a capabilities with better reporting Solar System. With has contributed to the silo, with limited sharing of of capacity and the ability to this amount of data development of a information. Yet bridging the ‘model’ infrastructure, to enable running through state-of-the-art gap between IT and facilities better utilisation of data and servers, it is DCIM solution, processes will transform data reduced risk of downtime. To essential that in collaboration centre operations, enabling increase overall energy efficiency organisations £4.5K with its both parties to improve the and reduce utility costs for are prepared Cost each minute strategic management of assets and our customers, the need for for all of data losses and partner workflows, they believe. detailed, rack-specific power eventualities. downtime Siemens, to consumption data with real time The deliver a single, The business case for Atos temperature monitoring and challenge facing consolidated Burnoud outlines the scope heat map visualisation was vital. many of today’s view of both IT of Atos’ own data centre “We monitor success by asking energy, facilities and and facilities operations infrastructure requirements: ourselves what our DCIM offers building service managers from a single workstation. “We wanted to improve to daily operations in terms of risk and directors is to ensure the operational performance with mitigation, cost improvements, successful implementation of Divided data centre operations software that offered deep data Centre performance a mission-critical Data Centre Florence Burnoud, head of integration, with the capacity and agility,” she concludes. Infrastructure Management global service assurance for to manage IT operations and (DCIM) solution and also Atos, Managed Services, and implementation skills, as well A smart decision to deliver real-time cost Siemens Global DCIM portfolio as manage energy and capacity To deliver integration and and energy savings. manager Philippe Heim agree efficiencies and incorporate efficiencies across their data As a leading global IT services that data centres are challenged the building and the critical centres Atos co-invested in provider, Atos manages more by multiple complex drivers: systems to drive down power the Siemens DCIM solution. than 100 data centres worldwide, the need to ensure maximum utilisation and to deliver a safe, This solution, Siemens taking the responsibility for uptime, reduce carbon footprint secure and efficient data centre.” DataCentre Clarity LC, delivers

46 December/January 2017 theenergyst.com Sponsored column

The countdown until the water market opens is on

a single, consolidated view of of cost and risk, performance all of a data centre’s IT and and agility. A key advantage facilities operations from one has been usage-based reporting workstation. The core benefits and invoicing, as well as better of the technology include: understanding of resource, • A single dashboard for Key duration and the cost of data Performance Indicators cleansing. Overall performance such as PUE and floor / has improved as we can now used space utilisation identify and eliminate Single • Real-time monitoring and Point of Failures (SPOFs), which historical reporting of has led to increased availability alarms and notifications, and reduced downtime; in particularly with regard so doing we provide a better Open Water 17 and to power, cooling, smart and more fluid service to our PDUs and IT equipment customers which has resulted in • Infrastructure lifecycle increased customer confidence. management via pre- Furthermore, we have market awareness defined and ad hoc reports, more accurate information sufficient saving to prompt the benchmarks and dashboards on IT asset and M&E power Ofwat and the Consumer Council for Water hosted switching that the Open Water and monitoring data in infrastructure and the single an event on Wednesday an integrated manner view of the data centre has 17 programme is planned to 7 December to explain • High-definition asset meant improvements to our deliver. and raise awareness of There have been a number visualisation to support internal data Centre processes.” ‘Open Water 17’. This is the capacity planning “We anticipate future returns of recent developments in programme for allowing the market. On 29 November • Workflow and work order will be include further benefits non-household customers to 2016 Pennon and South Staffs management that delivers in energy efficiency and a switch their water supplies Water joined forces to operate information sharing across higher utilisation which will and wastewater services departments, the ability to mean we are able to pass on to one of the 19 or so water as Pennon Water Services. The audit access or changes, reduced costs to our customers, retailers that will have trading name for the group support for cross-team KPIs as well as better deployment of licences to operate across outside their own supply areas and cross-functional analysis data centre capacity through England in April 2017. will be ‘Source for Business’. • Computational Fluid 3D modelling and ‘what if ’ Kelda Water / Yorkshire Dynamics (CFD) create ‘what installation planning.” The water companies are Water’s retail arm rebranded to if ’ scenarios, predict airflows Heim concludes: “The raising awareness on bills Three Sixty Water in December. The Water Retail Company, and temperatures for both operational challenges facing and websites and funding a national campaign, which is which applied for a licence to existing and new data centres Atos have been alleviated by the supply water and sewerage due to run from January 2017 • Power management adoption of robust, user-based, services on 28 November2016, enables the planning and modular integrated technology until the market opens. They is a new start-up company resourcing of assets and to ensure maximum uptime, are particularly concerned that headed by Lord Rupert cables, as well as the analysis resilience and sustainability. there is a lack of awareness Redesdale, who is the CEO of future-dated changes DataCentre Clarity LC combines particularly in the SME sector of the Energy Manager’s • DataCentre Clarity LC is information from vital sub- and are targeting membership Association. It is planning a based on Siemens’ tried systems that traditionally operate organisations and local limited entry aiming to sign up and tested Product Lifecycle in isolation into a single, powerful chambers of commerce etc. to no more than 20 businesss in its first year. But with an ambition Management software, which solution that monitors energy try and raise awareness. However, research to secure a turnover in its has a proven 20-year pedigree and building management, first year of £30m, it is clearly conducted by Ofwat and the • A data centre manager can physical security, fire safety, targeting large water users. access DataCentre Clarity power and communications, Consumer Council for Water LC from any workstation zones and raised floors, racks, back in 2014 suggested that around the world, giving servers and data storage systems, the levels of saving that a Our team of industry the management team the as well as switches and routers. company would need to make experts is on hand to agility and flexibility they Importantly, it prevents silos to prompt a switch of supplier answer any questions or need to ensure uptime and forming between IT and facilities was 19%. enquiries you may have address upcoming issues processes, enabling both parties With the margin between about water or energy. to share greater efficiencies. retailers and wholesalers Results so far IT and facility management expected to be only around Contact BIU at: Discussing the current outcomes integration is an essential 10% it will be difficult for [email protected] of the implementation of component for business success suppliers to generate or call 01253 789816 DataCentre Clarity LC in the in the mission critical data Centre Atos data centres, Burnoud says: environment and we look forward “Most pilot benefits have been to working with Atos to further realised in the three key areas their business requirements.” te thetheenergyst.energyst.comcom VIEWPOINT Powering health

Public private partnerships are providing increased impetus in driving down carbon emissions and energy costs in public infrastructure projects and taking the pressure off straining public sector budgets. One such example was the subject of a UKAEE event held at Bart’s Hospital, London to see an innovative tri-generation project. UKAEE committee members Gonzalo Jimenez and Funsho Alo provide an overview

UKAEE committee members next to a model of the pink trigen system at Barts Hospital

Centre holds some remarkable statistics. It is the first of its kind, being a collaboration between Sustainable Development Capital (SDCL), GE, Clarke Energy and the NHS Confederation. The onsite tri-generation unit was funded by SDCL as part of its ‘Powering £546K Health’ Barts’ annual energy collaboration saving using Jenbacher’s to deliver he UKAEE, in absorption chiller provides The lower-carbon, pink tri-generation collaboration with a significant proportion of hospital fully funded Clarke Energy, heating, cooling and electricity is one of (CCHP) system CCHP solutions Torganised a site visit to the hospital, driving down Europe’s to NHS Trusts. to Barts Hospital in London carbon emissions and the oldest still located The project was in November to see its Energy associated energy spend. in its original place, delivered through Skanska, Centre housing an impressive The system is expected to demonstrating how large-scale which commissioned Clarke tri-generation plant. save 2,500 tonnes of CO2 low carbon infrastructure Energy to install the system. One of GE’s 1.4MW emission and £546K per year. projects can work successfully It is also the first project Jenbacher pink tri-generation The CCHP is also supported within older buildings. that has been procured (CCHP) systems with a 250kW by 3 x 5.5MW gas boilers. Bart’s Hospital’s Energy and delivered through 40th World Energy Engineering Congress 2017: Regional Awards Regional Awards will be presented on Tuesday 26 September 2017 at the Georgia World Congress Center in Atlanta, Georgia in conjunction with the 40th Anniversary World Energy Engineering Congress (WEEC). If you know individuals, organisations, agencies, corporationsvor institutions in your region that are doing outstanding work in energy, you will want to make sure they are nominated for this year’s awards. To learn more about the Regional Awards Programme and to see award categories, visit aeecenter.org/regionalawards To submit your international award nomination, go to the online nomination form at: https://aeeawards.wufoo.com/ forms/2017-aee-regional-award-nomination/

WEEE call for papers The WEEC Advisory Board and the Association of Energy Engineers cordially invite you to submit an abstract for consideration to speak at the 40th World Energy Engineering Congress, being held September 27-29, 2017 at the Georgia World Congress Center, Atlanta, GA. To submit an abstract, visit aeecenter.org/weecabstract.

48 December/January 2017 theenergyst.com a variation of a private considerations, installation, system, which is designed to finance initiative (PFI). snagging, followed by This article was authored by minimise NOx emissions and The visit to the centre final commissioning and Gonzalo Jimenez, UKAEE maximise engine performance. committee member and commenced with an handover (projects to client, Funsho Alo, webmaster introduction by Paul O’Neill projects to service). Operation and maintenance for the UK Association of from Clarke Energy into the Energy Engineers (UKAEE). Clarke Energy is also technical specifications of Design consideration The UK Association of providing a 15-year fully GE’s Jenbacher gas engine All implementation issues such Energy Engineers (UKAEE) comprehensive maintenance and CCHP system along with as layout, balance of plant, covers a range of expertise contract to the tri-generation providing an overview of mechanical interfaces, electrical in the energy management system, which helps ensure the project development to interfaces and thermal and energy efficiency that the Bart’s Health NHS the service and maintenance interfaces were considered as sectors. It delivers a range of Trust benefits from the arrangements. well as a full understanding of technical focused seminars increased energy efficiency, From receiving the initial the integration with existing and offers excellent reliability, durability and enquiry, a design and services and system resilience. networking opportunities financial savings that the proposals team was assigned. Other aspects such as planning for energy and sustainability system brings to the hospital. A feasibility study was then requirements, grid connection professionals. However, before agreeing It offers continued conducted to fully appreciate application, dispersion on a formal maintenance professional development the scheme and assess all modelling and implications opportunities for AEE contract, an essential loads to realise maximum to overall programme were certifications such as due diligence process benefit (operation, availability also carefully considered. certified energy manager, was undertaken by Bart’s and reliability) which was certified measurement and Health NHS Trust assessing used to inform the pre-design Engine selection verification professional and financial stability, ability to and tender development. The generating set installed at certified energy auditor. guarantee parts availability Post-tender queries, the hospital is a JMS420GS- Membership to the and price, investment for post-tender interviews and NL Jenbacher gas engine UKAEE is currently free. For the future, track record, in- submittal stage were then manufactured by GE Power. more information on UKAEE territory support, skilled and carried out followed by This engine is characterised or how to join, or if you like equipped service engineers. contract negotiations, project by its high power density to attend the year’s AGM on award and internal handover and efficiency – with total 31 January 2017 at 5pm in Triple bottom line savings London – venue tbc – please to a design and projects team. efficiency of the engine of Being a PFI project, where visit ukaee.org.uk A detailed engineering 88.6% (thermal efficiency private capital is used to design was then conducted 47.1%, electrical efficiency fund public infrastructure to include ‘Application 41.4%). The electrical output projects, there were bound Design Review’ and ‘Design is 1,426kW and the energy to be challenges in the Freeze’. The site works stage input 3,443kW. The engine implementation of this included pre-construction also features GE’s LEANOX project. Fiona Daly, head of stages, health and safety lean-burn combustion control sustainability and patient transport at Bart’s Health NHS Trust, took the delegates through the PFI process including financing, risk of the overall project and other options considered. The visit concluded with a walk-around the Energy Centre where Bryan O’Regan gave the attendees further information about the impressive pink trigeneration system and the support boilers. Ultimately, this has proven that large-scale public private partnerships can be successful through open strategic partnerships such as that between the NHS Confederation, Skanska, SDCL, Clarke Energy and GE, delivering a triple bottom line of cost savings, carbon savings The Jenbacher pink trigen system at Barts provides a significant proportion of the hospital’s and improved resilience. te heating, cooling and electricity ukaee.org.uk theenergyst.com December/January 2017 49 MONITORING & TARGETING Water competition and EDI billing will reap rewards

EDI billing is likely to be the main attraction for multisite organisations following reform of the water market, believes Team’s managing director Paul Martin

The lessons from electricity and gas competition are that water suppliers need to break away from any complacency engendered from a monopoly position, listen to their customers, embrace change and be quick to implement best practice

f, as we are led to believe, for a water supply contract banks, local authorities, health the computer to computer the price reduction and which may not be tendered authorities, emergency services transfer of invoices between therefore cost savings again for two or three years. and even housing associations two organisations using an Ifollowing water reform Just like we had in the and local authority housing agreed industry standard. HM in April 2017 may be as little 1990s with electricity and gas obtain their electricity and Revenue and Customs accepts as 1% to 2%, Electronic Data deregulation, competition gas invoices through EDI. EDI as a ‘bill’ but other forms Interchange (EDI) billing is is a wonderful opportunity For water, most have to toil are merely ‘billing information’ likely to be the number one for organisations to get what through processing paper and hard copies are required priority and the key driver they have been asking from invoices or occasionally receive to satisfy tax requirements. I in selecting a water supplier. the water suppliers for many CSV files. Each supplier has know of a few utility companies During electricity and gas years, ie ‘Best Practice’ in water a differing format that can that got a nasty shock when competition in the 1990s, cost billing. EDI, invoicing to the change without notice and an over enthusiastic salesman savings were much larger. UK utility industry common therefore break the process. signed them up to ‘EDI billing’ Multi-site organisations are open standard, TRADACOMS It is important to know that and after despatching their already including EDI in their file format 26v3 (UTLBIL), is EDI billing, contrary to what first consolidated bill in some water tenders as a prerequisite common place now. Almost all some utility salesmen think, isn’t CSV format, were informed and it is likely that government electricity and gas companies a spreadsheet, CSV file, posting a by the customer they were procurement bodies such as can provide this capability (see PDF on a website, or even XML in breach of contract. Crown Commercial Services Table 1) but only one water files despatched electronically. will too This may come as a company can, Yorkshire Water. It is also a myth to think that So where did it all start shock to any water supplier that To their credit it has been this is only something for large and what lessons can be isn’t listening to their business providing this since 2003. companies. EDI billing is also learnt from electricity customers as they could miss Currently, multi-site common place for organisations and gas competition? the opportunity to tender customers such as retailers, with only a few sites. EDI is We have British

50 December/January 2017 theenergyst.com Telecommunications (now software system. Basically this BT) to thank for leading the was the paperless, electronic way in bringing best practice ‘end to end’ processing that into utility billing. Back in the was then the ‘norm’ from early 1990s, electricity and gas suppliers in other business companies were privatised and sectors. Four electricity by the mid-1990s competition companies were successful. arrived. Competition resulted in Manual bill entry that took consumer power and the ability two days to input was now to stipulate to a utility what processed in 20 minutes. they wanted. The power was The data processing team shifting from the state-owned in Reading reduced from monopoly to the customer, keen 22 people to 10, then halved to enjoy the process efficiencies again when gas companies they already enjoyed partnering provided EDI billing in 1999. with suppliers in other business The lessons from electricity sectors. With an eye to the future and gas competition are competitive market, in 1993 BT that water suppliers need invited the electricity companies to break away from any to produce electronic bills. complacency engendered The problem for BT was from a monopoly position, it had more than 20 people listen to their customers, in Reading processing embrace change and be quick hundreds of thousands of to implement best practice. paper electricity, gas and water invoices for its 7,500 So how does the EDI sites from all the regional billing process work? utility companies. The The utility company tags information within the the individual invoices that invoices (which is also a belong to a customer. If the rich source of information paper invoices are sent to a for energy management) single address, this is likely was entered into BT’s M&T to be already done. There are software system for validation, then typically two choices checking and forwarding to generate EDI bills: for payment. It was also its 1) The utility company energy management database builds the capability into from which it was able to the core billing system. carry out benchmarking, This was typically the route exception reporting, waste the utilities took in the late detection, financial reporting, 1990s and early 2000s. budgeting and accruals. 2) The utility company Then, leading up to the uses a third party, virtually competitive market in 1995, ‘off-the-shelf ’ software. This BT invited all electricity is located on a server that companies to a meeting. is sent the billing file, maps It was explained what this into TRADACOMS requirements would be in format, reconstructs the its forthcoming tender, why bills, checks the integrity it was asking for them, and of the bill, encrypts the file said that it would work with if required and despatches electricity companies to it to the customer by email provide it. This was to remove or other agreed means. all paper billing and replace The latter route tends it with one consolidated bill to be favoured by the for all its sites. It should be utilities now as it is non- HM Customs and Excise intrusive, inexpensive compliant, to an industry and quick to deploy. standard format, containing The customer will usually sufficient detail such that all receive the email message into elements of the bill could be their M&T software, which checked through its M&T will automatically process it. » theenergyst.com MONITORING & TARGETING

TABLE 1: COMPANIES PROVIDING EDI BILLING customer and utility company, before it withdrew from the indicates which utilities market. Water Plus, we believe, Utility company Electricity Gas Water provide EDI and includes is committed, and others we Business Stream ✔ wording that can be ‘cut and know are likely to follow suit. pasted’ into electricity, gas and Interestingly, Welsh Water, Centrica ✔ ✔ water tenders to invite ‘best which will not be part of the Corona Energy ✔ practice’ from their supplier. competitive market in 2017, Dong Energy ✔ ✔ The four main elements, may consider EDI billing due which are important to include to the pressure from the Welsh E.ON ✔ ✔ in tender documentation public sector and particularly Haven Power ✔ so both parties understand the local authorities in South and agree their obligations, Wales, which have in turn been Laser ✔ ✔ are as follows; asked by the Welsh government Mobile Gas ✔ to increase electronic npower ✔ ✔ • EDI message, operating payments and processing. procedures and protocols The energy manager of ✔ Opus Energy • Visibility of charges one local authority told me: Seven Trent ✔ • Full cancel, reinvoice “Ninety per cent of our water Scottish and Southern ✔ ✔ • Change control procedures is supplied by one water company. It takes us ages to go Scottish Power ✔ So how are water through their CSV files, check Smartest Energy ✔ companies faring? it, sort out their columns and The problem with water formats before we can use it. Three Sixty ✔ billing is that it has not moved It will cost us £50K to go out Total ✔ ✔ forward in the past 20 years. to tender through OJEU and Yorkshire Water ✔ When there is a monopoly if we can only save 1% that’s supplier, isn’t it supposed to £30K. If we can get them to Correct as of 30 November 2016. Source: Team be the regulator who protects provide EDI billing like we get the interests of the consumer? for electricity and gas we may M&T systems are commonly themselves in their terms Currently, as previously not need to go out to tender.” used by most multi-site and conditions by rejecting mentioned, Yorkshire Water An EDI billing capability is organisations to check bills, the whole consolidated can provide an EDI billing not only an acquisition tool detect energy waste and to bill if x% are found to be capability. Seven water to attract new customers in build a database in support of incorrect and ask for a correct companies provide CSV files 2017, it is a retention one too, many compliance activities, consolidated bill to be sent. and the rest paper billing. to keep existing customers in such as; Carbon Reduction Although it is somewhat Of the seven, all are in a their own area. Also, if water Commitment, Greenhouse counter intuitive to pay a different format derived by the suppliers that have ‘opted out’ Gas Reporting and Display bill where some individual water company themselves, of the non-household market Energy Certificates etc. After bills are known to be only one has any change to concentrate on forthcoming validating and checking the incorrect, the alternative is control procedure’s, only half household market, do not bills the software usually fraught with problems. This have a full cancel and rebill provide EDI billing for sends a file with reduced, procedure has been followed capability and the visibility housing associations, local but specifically defined by companies for years. of charges is mixed. authority housing, university information, to finance It seems likely that the halls of residence etc that where it is loaded directly So what are multi-suite new Kelda Retail (Yorkshire want it, and engage with them into the accounts payable organisations likely to be Water) will provide EDI billing, now to build relationships, system for payment – usually stipulating in their tenders? Business Stream and Severn they may look elsewhere. by BACS or Direct Debit. The Energy Services and Trent had a capability in Q3 These could be plum targets It is customary that the Technology Association (Esta) 2016 as did Thames Water for predatory competitors full EDI ‘parent’ bill amount represents more than 120 that can provide it now. is paid and any incorrect energy services companies The way ahead seems ‘child’ bills that the customer including more than 80% of pretty simple. Listen and identifies are cancelled and the M&T software suppliers hear what customers want. rebilled in the next billing in the UK. The specialist An EDI capability and cycle. Very occasionally a aM&T group within Esta, in compliant ‘best practice’ customer may stipulate that conjunction with customers, billing systems could be the they only want to pay bills that has produced a ‘Best Practice The problem with number one attraction for are 100% correct. However, Guide, EDI Billing – The use water billing is that many multi-site organisations. this leads to complications of the TRADACOMS 26v3 it hasn’t moved The decisions made now by from an HM Revenue and Open Standard by Utility water utilities on billing may Customs point of view. Companies’. This summarises forward in the past determine their success and The customer can protect the benefits to both the 20 years destiny after April 2017. te

52 December/January 2017 theenergyst.com HVAC Landlords caught cold? Heating and hot water within buildings is responsible for 40% of the UK’s energy consumption and 20% of its greenhouse gas emissions. The Heat Network Regulations 2014 aim to tackle this but many landlords are either unaware they need to comply or bewildered as to how to do so, writes Carbon Smart director Louise Quarrell

he Heat Network information required within Regulations the compliance documents 2014 affect all is often not readily available Torganisations that and needs to be sourced supply and charge for heat, from technical specifications, cooling or hot water through a O&M manuals, site visits communal or district network, or online research. regardless of whether this is Retro-fitting meters can billed for directly or through a be expensive and disruptive service charge. This includes to tenants, and needs to landlords with multi-tenanted be carefully managed. For offices, housing providers, larger organisations with universities, local authorities, multiple systems in scope, and residential care homes. the compliance exercise can The regulations have be a significant undertaking. laudable aims – to drive All the more reason to want carbon savings by motivating to get it right first time. energy efficient behaviour Commercial landlords could be forgiven for being confused by the Mounting concerns have through charging end-users regulations, but ignorance is no defence, says Quarrell forced BEIS to rethink the for the heating and cooling regulations and a consultation they actually consume. While after the notification deadline, meters where technically and on the requirements is due this is an admirable goal, we regularly come across economically viable to do early 2017. However, the has it been implemented organisations that are not so. This requires a viability requirement to notify BEIS and monitored effectively aware they need to comply. assessment to be carried out. about the network and to achieve results? Deadlines have been altered However, the viability tool provide key information multiple times. The original designed for this purpose was on the system remains. Notification deadline notification deadline was withdrawn many months ago BEIS is starting to The requirement to bill April 2015; this was pushed and remains unavailable. This contact organisations and to end users based on actual back to December 2015. has left organisations unable chase up non-compliance. supply came into effect on 19 The deadline for installing to ascertain whether they Therefore, if you are yet to December 2014. Notifications meters has been moved need to comply with the meter comply with this element by suppliers of heat and hot from December 2016 yet installation requirement. your time is running out! water through communal the new date is unknown, Complying with the Although BEIS has stressed or district networks were although it is likely to be in regulations is not a straight- it will work with companies due by 31 December 2015. 2018 to allow organisations forward exercise. The to help them comply with the The next step is to install sufficient time to budget and regulations, breaches could be heat meters for each end plan the required work. subject to compliance notices, user in the building. While BEIS is adamant that penalties (£5,000 per offence) However, haphazard the deadline moves are aimed or even criminal prosecution. rollout has left qualifying at making compliance easier, It is a shame the regulations landlords either unaware or it does make it difficult for have suffered these setbacks, baffled by the requirements. organisations caught by the Breaches of the but from our conversations The regulations have regulations to keep track and with the team at BEIS, been poorly publicised. The plan their response accordingly. regulations could it seems determined to Department for Business, be subject to build a smoother, more Energy & Industrial Strategy Need to comply? compliance notices, straightforward it gets get (BEIS) states that it has, and Compliance documents penalties (£5,000 the revised legislation right continues to, exploit a range have been released and then – focusing on the efficiency of awareness-raising activities. revoked. The regulations per ofence) or even and carbon savings that Yet even now, almost a year require suppliers to install criminal prosecution were its principle aim. te theenergyst.com December/January 2017 53 HVAC

Free guide to Heat Network regs The legislation also rules that heat The Department for Business, Energy & customers must be billed using actual meter Industrial Strategy (BEIS) has recently readings, rather than estimates, at least updated the Heat Network (Metering and one a year, and that billing information Billing) Regulations – and community must be transparent and informative. heating fi rm Switch2 Energy has There are also recurring duties for heat produced a new free guide detailing what suppliers to update the registration of those changes mean for heat suppliers the heat network every four years. such as landlords and developers. Switch2 head of R&D Ian Allan said: The legislation covers every community “The only parts of the regulation that and district heating system across the are on hold are the feasibility tool and country and forms a cornerstone of the retrofi t of fi nal meters. It is, however, a 10-year international initiative to expected that all heat networks will reduce energy consumption and carbon need to be fully metered over time. All emissions and increase effi ciency. other deadlines and requirements still The major regulatory change is that the extended to the end of 2017, or 2018. stand and BEIS has indicated that it duty to fi t fi nal customer meters to existing However, it remains compulsory for will strongly enforce the regulation.” unmetered buildings has been delayed. The new build projects and most buildings He continued: “Smart metering strategies feasibility tool, that is intended to indicate undergoing major refurbishment to fi t are key to improving energy effi ciency, the viability of retrofi tting meters to existing fi nal customer meters. It is also mandatory as well as fair and transparent billing.” district heating schemes, is expected to for all heat networks to install point of be launched in 2017, with the deadline for entry meters, which record the amount Download the free guide retrofi tting fi nal customer meters being of heat delivered into the building. at bit.ly/2hmtANS

New R-32 heat pump cassette system More limescale prevention, less waste Sentinel Commercial says Cleaner to remove black oxide its new ‘Triple Power’ water magnetite and other corrosion treatment chemicals help debris in older systems, deliver lifetime protection and Sentinel Commercial from corrosion and limescale X100 Inhibitor to protect in commercial heating the system. Maintenance and cooling systems. involves the regular use of The new Triple Power Range Sentinel SystemCheck, a protects systems up to three water treatment analysis kit times larger than its previous and service that provides a formulations, according to prompt and independent the company, meaning less report of water condition, Accommodating cooling impact compared with the product now goes further. including confi rmation that capacities from 6.8kW to R-410A equivalent products. In its simple best practice a system has been correctly 13.4kW, Daikin says its new In addition, the new cassette system, cleaning removes cleaned and protected with Sky Air Bluevolution Cassette system has been expanded contaminants, protection Sentinel X100 Inhibitor. It also prevents corrosion and includes the implementation of is an affordable, energy- to support applications with limescale in clean systems, corrective action, if required. effi cient, environment-friendly longer piping requirements and maintenance ensures The new products will heat pump solution that up to 85m in length. ongoing protection. According be detailed on the fi rm’s uses R-32 as a refrigerant. Seetha Sasikala, Daikin Europe to the fi rm, a contractor would website from early 2017. With a 15% lower refrigerant sky air and packaged products use a Triple Power Sentinel charge, the system has no SBU manager said: “We are Commercial X300 Cleaner need for an annual refrigerant proud to launch Europe’s very to remove installation containment check. The fi rm fi rst light commercial cassette debris, fl ux residue and claims that the new heat pump system using a next-generation greases from a new cassette system, which works off low GWP refrigerant, which system or Sentinel a single phase, 220-240V power supports Daikin’s ongoing Commercial X400 supply voltage, provides some global aim to lower the impact of the highest seasonal energy of its product portfolio. ratings on the market, with “The Sky Air Bluevolution a Seasonal Energy Effi ciency cassette system uses as much as Ratio (SEER) up to 7.35. 15% lower refrigerant volume The result, claims Daikin, is in operation compared to its a signifi cant improvement in R-410A equivalent – delivering energy effi ciency and a 68% immediate benefi ts in installation reduction in environmental use and maintenance.”

54 December/January 2017 theenergyst.com

HVAC

Gas grid future: Committee on Climate Flexibility and grid services will drive future Change chief calls for ‘proper‘ hydrogen trials revenue for combined heat and power The independent Committee next decade, but also prepare Providing flexibility and such as grid support and on Climate Change (CCC) has ourselves for the decision grid services will become demand-side response”, said called for “proper and effective that needs to be made.” increasingly valuable to Marsland. However, customer low carbon hydrogen trials” Implementing “proper and firms with combined heat trust and engagement so that the UK can make effective trials for low carbon and power (CHP) systems, represent a barrier to informed technology decisions hydrogen [and] ramping according to Chris Marsland, scaling an aggregator- in the mid 2020s to hit 2050 up at a reasonable rate will technical director of type business model, decarbonisation targets. allow us to put in place the ENER-G Combined Power. Marsland acknowledged. CEO Matthew Bell also framework, skills, training, Marsland said the “You are dealing with suggested energy efficiency consumer understanding business, acquired earlier this the energy manager, the must be central to decision- and to join up energy year by Centrica, expected maintenance manager and making to maximise efficiency and low carbon significant growth during buildings team, with the outcomes and that funding heat so that we will be in a the next 12 months, which finance team – it crosses so for heat pumps must be place to know how to push would result in a doubling of many different areas within more effectively targeted. forward in a concrete way the “eight billion datapoints” the business. It is really hard Bell said that while the in the mid 2020s”, Bell told it currently handles. to drill down and get the right blend of low carbon heat the ADE’s heat conference. Speaking at the ADE’s heat person who can both make technologies – as well as He suggested that new conference, Marsland said a decision – and bring along gas – required to decarbonise build homes and those off the firm was concentrating the other people involved the economy by 80% on 1990 the gas grid would be prime on turning that data into [in the process],” he said. levels was currently unknown, candidates for rolling out insight. ENER-G is building Marsland did express technology decisions would hydrogen trials in the shorter an integrated system that optimism that digitisation of have to be made within the term, as well as installing automatically links together the energy industry would next decade to stand a chance more proven technology such all customer generation help remove market barriers. of hitting 2050 targets. as heat pumps. The CCC’s and storage assets – such “Having visibility of energy “There will be an important scenario modelling suggests as CHP, battery storage and prices in real-time available decision in the mid 2020s about 200,000 heat pumps solar – to improve their to everybody through the about the importance of low will be installed a year by overall efficiency, “balance internet will help and I carbon hydrogen, because it 2020. That compares to about out the energy flows” and think the introduction of will potentially create a different 20,000 annual installs today. make the total more effective smart contracts maybe role for other technologies CCC scenarios suggest that than the sum of the parts, linked to the blockchains, such as heat pumps,” said Bell. one in seven homes and “half according to Marsland. the bitcoins, will enable “If we know we have to make of public and commercial Optimising aggregated peer-to-peer transactions that decision in mid 2020s, the buildings will be heated by customer assets will also for a single customer with a question is what needs to be some form of low carbon enable firms to “access the big utility,” he said. “I think done between now and then heat by the time we get new value streams for CHP, that will be a big enabler.” both to reduce emissions over into the 2030s”, said Bell.

Government tilts biomass subsidy in larger plants’ favour, retains solar thermal support

The government has BEIS has also retained published changes to support for non-domestic support rates for renewable solar thermal, which was and low carbon heat potentially due to be cut via the Renewable Heat when the department Incentive (RHI). consulted on proposed RHI The Department for changes earlier this year. Business, Energy & Industrial However, 92% of responses Strategy (BEIS) remains keen to that consultation argued to incentivise larger biomass, against scrapping support. which it believes is a more Subsidy for commercial efficient use of available air and ground source heat funds, and has merged pumps remains unchanged existing tariffs into one rate. but support for biogas BEIS remains keen to The tiered biomass and biomethane will incentivise larger biomass support structure will now increase, subject to a stricter favour larger developers. feedstock requirements.

56 December/January 2017 theenergyst.com

LIGHTING

Lambeth walks the walk, the significant improvements in street An eye on savings: saves £500,000 per year Bouygues is helping lighting technology we can now reduce Lambeth reduce energy consumption and maintenance Bouygues Energies & Services has its expenditure costs while maintaining a good standard developed an Invest to Save Plan and minimise its of lighting. This means the authority’s to replace 13,000 existing standard carbon footprint standards regarding lighting, safety street lights with LED lighting, and security for residents can continue working in partnership with the to be upheld. To date Bouygues has London Borough of Lambeth. installed over 7,000 lanterns and is The plan will help the local significantly ahead of programme.” authority reduce expenditure and Lambeth’s cabinet member for minimise its carbon footprint while environment and sustainability, maintaining service delivery. Jennifer Brathwaite, added: “This is an The project is being delivered important step in making our borough on a fast track programme to as environmentally friendly as possible. achieve energy savings of £500,000 • 2,700 tonnes of carbon saved per year “These new LED lights will save per year once completed. • 60% energy saving the council money, be kind to the Bouygues operates a private finance • eight year payback period environment and even provide a better initiative (PFI) contract to maintain • 13,000 lanterns replaced quality of light on our streets at night. the street lighting assets for • 15 month replacement programme “When there’s an opportunity to Lambeth Council, so was well improve our service, help the placed to undertake the upgrade. John Francis, operations manager at environment and save money, we The highlights of the initiative are: Bouygues Energies & Services, said: “With have to be proactive and take it.”

LED Eco Lights shows its softer side with Thorn Lighting gets a pizza of the LED action sleek panels for offices, retail and healthcare Thorn Lighting has LED Eco Lights has added a the company, is well suited provided an energy efficient LED lighting range of ‘sleek’ office panels for use in Cat A/B fit-outs as upgrade for pizza firm Papa to its Goodlight product line. well as any areas requiring an John’s new headquarters The firm says the Goodlight LED upgrade for a standard in Milton Keynes. Luxe panels deliver softer, Cat 2 modular fitting. The Thorn team worked more natural light, improving The Luxe panel draws 32W, closely with Halligan the work environment in is 600mm square and has a Associates, Birmingham, offices and meeting rooms, and colour temperature of 4000K to deliver a design that enhancing the ambiance in (natural white). LED Eco Lights included 600 x 600 reception areas and corridors. also offers the Goodlight Avant Omega PRO LED recessed The panels also suit high- LED Panel, with a range of luminaires and Chalice grade office environments mounting options, and includes LED recessed downlights to as well as retail, healthcare a microprismatic diffuser for provide 450 lux throughout or educational applications, glare-free lighting performance the office areas. according to the firm. achieving UGR <19. The Omega PRO LED 600x600mm fitting has a uniform appearance which, The new panel has Businesses can pay slim 12mm profile and a combined with a unified chamfered twin opal diffusers, upfront or use the company’s UV-stabilised opal acrylic glare ratio <19, CRI 80 providing a uniform 90° BrightPlan leasing scheme diffuser so it will retain its and CRI 90, makes Chalice light spread. It delivers low to pay for the lights directly clean look. The IP44 rated well suited to high quality glare illumination and, says from energy savings. Omega provides glare control lighting applications. (UGR<19/22) and is easily Other Thorn products retrofitted, says Thorn, while used in Papa John’s upgrade maintenance is significantly include Glacier LED, modern reduced by the 50,000 hours’ and efficient decorative life of the 4000K LED lamps LED pendant luminaire supplied with the fitting. with high lumen packages, Thorn’s Chalice LED is in the reception area and a high-performance LED Surface Aquaforce IP65 downlight that Thorn rated LED luminaires in claims delivers efficacy of the dough room to provide up to 110 Llm/W. The high the required 500 lux via performance optic and light low-energy lighting in this mixing chamber provide a damp, dusty environment.

58 December/January 2017 theenergyst.com

THE ENERGY AWARDS 2016 Congratulations to the winners

1

1. Energy Champion of the Year 2 3 Mervyn Bowden, chartered energy manager, Empirical Energy

2. Behavioural Change/ Employee Engagement Babcock International

3. Energy Buying Team of the Year – Six and Under Amber Energy

4 5 4. Energy Buying Team of the Year – Over 6 The Energy Consortium

5. Supplier of the Year Haven Power

6. Energy Data Collection and Analysis BG Energy Solutions

7. Energy Efficient Product of the Year HVAC&R 6 7 FridgeWize

60 December/January 2017 theenergyst.com 8. Lighting Energy Impact Award New York Bakery Company and R3MC (Biffa)

9. Retail Energy Project of the Year Honeywell

8 9 10. Innovation of the Year – Processes and Projects National Trust / Ashden

11. Public Building Energy Project of the Year UK Energy Partners

12. Innovation of the Year – Technology: Physical Product Waterscan

10 11 13. Residential Building Energy Project of the Year Moixa Technology, Bioregional, Oxford Brookes University and Oxford City Council

14. Innovation of the Year – Technology: Internet and Controls Pulse Business Energy

15. Smart Product of the Year 12 13 Honeywell Controls 16. Commercial Building Energy Project of the Year The Crown Estate

17. Energy Efficient Partnership of the Year British Gas and the partners in BGreen Oldham

18. Third Party Intermediary of the Year (Broker) – Under 14 15 50 Employees Beond Group

19. Third Party Intermediary of the Year (Broker) – Over 50 Employees Kinect Energy Group

16 17

18 19 theenergyst.com December/January 2017 61 THE ENERGY EVENT Cost-effective carbon reduction

From low-energy lighting and building controls to waste-to-energy plants, reducing your carbon footprint doesn’t have to break the bank. Nicola Meadow explains

he behaviour of Building controls commissioning in 2025, which individuals is more Businesses can intelligently saw offshore wind drop to £100 important than ever regulate an entire building’s per MWh, large-scale solar PV Tin shaping the future heating, ventilation, cooling and drop to £63, and onshore wind of the green energy sector. lighting to reduce excess energy greater than 5MW drop to £61. This is because while some consumption. While more costly This compares with a 2025 renewable technologies are to install, depending on their levelised cost estimate of £136 very large in scale, such as sophistication, these systems offer to £148 per MWh for coal- industrial wind and solar farms, attractive returns on investment in fired plants in 2025, between many other initiatives are well- terms of savings on energy bills. £82 and £189 for various suited to smaller businesses, For those with more funds, Replacing ineficient types of gas-fired plant, and like low-energy lighting. low-carbon energy measures halogen bulbs can ofer £95 per MWh for nuclear. This scalability fundamentally including grid-connected solar a return on investment in BEIS also said its estimates sets the renewable sector panels are another option. about five months of lifetime cost reductions for apart from non-renewables While a higher capital outlay renewables may be conservative, such as coal and oil, which are is required, if a grid-connected Large-scale renewables noting there have previously limited to large-scale industrial system is producing more Moving away from individual been large reductions in its generation. But flexibility and power than is consumed, then initiatives, large-scale projected costs for renewable lower emissions won’t pay the what is left over can be fed renewable energy is a sector generation facilities. It bills, and cost-effective carbon into the mains grid, with some traditionally considered more explained this reflected cost reduction measures are central electricity companies offering expensive to build and operate reductions and technological to maintaining the momentum credit on your bill in return. than many of the fossil-fuel improvements for these of the green energy sector. Installing ground-source powered competition. technologies, as well as faster On an individual level, facilities heating is another option, but However, reduced load progress in their deployment. managers can achieve reductions again the price tag is higher factors and shorter lifetimes This is just a snapshot of some in energy costs by making a few thanks to the ground work for coal and gas plants are of the renewable energy options simple changes. Behavioural required, and there are other impacting their cost efficiency, available to individuals and adjustments such as using considerations – a poorly while at the same time more industry. Regardless of whether appliances, lighting, heating and insulated building will struggle to of the cost of renewable or not government decides to water more efficiently are the see the benefits of this technology, energy projects relate to their scrap the carbon price support most cost-effective of all because for example. But if the technology construction, with technology mechanism, renewables such there is no capital outlay. is applied effectively, using costs dropping in recent years as solar, wind, biomass and Property management an efficient wet system heat The Department for Business, waste-to-energy are becoming companies and housing distribution like underfloor Energy & Industrial Strategy far more cost-effective. associations should also heating, ground-source heating estimates the levelised cost These key topics and many consider initiatives like cavity can be an effective way of of various power generating others will be featured at The wall and roof insulation, double reducing energy bills and carbon technologies – essentially the Energy Event 2017 (12-13 glazing, draught proofing emissions over the long-term. lifetime cost of a power plant per September, co-located with RWM and boiler replacement. MWh of electricity generated, at the NEC in Birmingham, Introducing low-energy including construction, rwmexhibition.com), as part of lighting is another option – operating and decommissioning the workshop programme where replacing inefficient halogen costs. Its latest figures for government, businesses and bulbs with LEDs can offer a November found renewables regulators will come together in return on investment in energy were more competitive. high-level discussion. Exhibits bill savings about five months Lifetime costs are falling for from major solution providers, after installation, according to 30% low-carbon technologies such equipment manufacturers and YouGen. At the same time, adding as large-scale solar, onshore operators will be on show at occupancy sensors can reduce and offshore wind greater than what promises to be a powerful electricity use by a further 30% 5MW, and biomass, according platform for shaping the future of by dimming or switching off Electricity saving by dimming to BEIS. For instance, the report the low-carbon energy debate. te lighting when a room is vacant, or switching of lighting when outlined potential levelised Nicola Meadow is RWM according to the Carbon Trust. a room is vacant cost estimates for projects Event director at Ascential

62 December/January 2017 theenergyst.com PRODUCTS

Cleantech Hub opens doors in the North East

Green Energy Consulting is set to open a new experiential space in January to demonstrate new energy efficient and renewable technologies. Based in Gateshead, the Energy Hub concept aims to bring cleantech to life so that clients and potential clients gain a deeper understanding of how technologies work in practice – and how they can be applied across their organisation. “We want to bring renewables and energy efficiency to life, and show businesses across every sector what can be achieved,” said Green Energy Consulting efficiency experts will also be on hand to energy efficient technologies showcased director and co-founder Kilian Coyne. provide bespoke demonstrations and advice. include LED lighting, energy monitoring “We think that demonstrating how “We look forward to welcoming and intelligent heating controls. the latest technologies can reduce everybody with an interest in making their As well as welcoming businesses and energy consumption and how easy it organisation more robust and less carbon public sector organisations to the Energy is to benefit from renewable energy intensive from January 2017,” Coyne added. Hub, Coyne says it will also help to educate will prove more powerful than reading Renewable technologies on show at the schools and colleges in the North East technical specifications on a page.” Hub include ground source heat pumps, on the benefits of a smarter, cleaner and The firm says its auditors and energy solar PV systems and wind turbines while more efficient approach to energy.

Free hydraulic power efficiency download Eaton has published a Using hydraulic power units Control occupancy The phone or tablet can be new white paper that as an example, the power switches from used as a remote control on/ provides background and management company’s new your phone off override or to configure approaches for reducing white paper, Planning and a number of EasyZAPP energy consumption in operating hydraulic power Danlers has launched its controls at the same time. applications where flow units to provide greater energy EasyZAPP range of PIR Danlers says the products rates need to be controlled. efficiency, explains how occupancy switches. Designed are straightforward to install and why the choice of drive for the automatic control of and generally make use of concept for hydraulic pumps lighting or other connected existing wiring, making can have a significant impact loads, these controls are them suitable for either on energy and life cycle costs. remotely set up or adjusted retrofit or new installations. Machine and system using a free app on an The EasyZAPP range builders can achieve energy Android phone or tablet. includes switching only savings of more than 50% EasyZAPP products controls as well as controls if they use variable speed work as presence detector for dimming available for drives. At the same time switches and can be either DALI, 1-10VDC or DSI they benefit from lower heat adjusted for settings such as dimmable ballasts. Mounting generation, and therefore photocell override, time lag options include: ceiling flush, reduce cooling requirements. and maintained lux levels ceiling surface, high bay and Other important benefits (dimmable versions only). batten mount variants. include achieving a more compact design and reducing pump noise level. The paper also discusses and explains the role of power management and the contribution that an intelligent wiring and communication system can make in preparing machines for the Internet of Things, ie in making machines IoT-ready. The white paper is available for free download at eaton.eu/moem-ee theenergyst.com December/January 2017 63 Product & Services Directory Contact Harry Powell Tel 020 3751 7863 Mob 07557 109476

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theenergyst.com December/January 2017 65 Q&A Julie Allen

The principal at JA Allen Consultancy Services talks about Daleks, her Kindle and being the next Joni Mitchell

Who would you least like My Kindle and a solar charger. Joni Mitchell to share a lift with? Why? I can exist without most A Dalek. I have an irrational things. I’ve left my phone fear of them going back to my at home and coped, but I’ll childhood. And before anyone always go back for my Kindle! says this is highly unlikely, I came across a horde of them What’s your favourite in Excel one year. I swear that film or book and why? day I could have given Usain Tough one this. I love any Bolt a run for his money! Terry Pratchett book, and I can always make time You’re God for the to watch Stardust. Oh, day. What’s the first and Small Soldiers. And thing that you do? Batteries Not Included. dream job be and why? Make fossil fuel non- A singer. I love singing combustible. Then we’d have If you could perpetuate and I can see myself as to work on renewable energy. a myth about yourself, the next Joni Mitchell. what would it be? If you could That I’m a traveller from What is the best piece travel back in the future, come back of advice you’ve time to a period to save the planet. ever been given? in history, Don’t sweat the small stuff what would it What would your super be and why? power be and why? What irritates you The Victorian The gift of the gab. I envy the most in life? era. I’d persuade marketeers and sales How those with the loudest everyone that people who can persuade voices get heard, to the decentralising others to do things, even exclusion of common sense. energy when it sounds daft. How there always must be production was the ‘Next best thing’, even the way to go. What would you do with when tried and tested works. a million pounds? Who or what Buy a smallholding and raise What should energy are you chickens and goats. The managers be doing to enjoying goats would keep me in wool help themselves in the listening to? for my knitting! Oh, and I’d current climate? Jazz and swing, have a recording studio as Stop looking at solutions with a bit of soul thrown in. well. And be self-suffi cient. with a marketing bent. I love Bette Midler and Beth Sometimes the most practical Hart. And Radio 4 Extra, What’s your greatest solutions are invisible. I do love a good drama, extravagance? especially science fi ction. I came across a Yarn. I have far too much, but What’s the best thing – work horde of them not enough, all at the same wise – that you did recently? What unsolved mystery time. I make clothes for my Start my own consultancy. would you like the [Daleks] in Excel grandson, and dragons and I’ve got over 20 years’ answers to? one year. I swear hippos for friends. I also make experience in the energy Atlantis! Did it exist? that day I could have a mean pair of shark socks. industry, from end user to supplier and I realised What would you take to a given Usain Bolt a If you were blessed with I could help more people desert island and why? run for his money! any talent, what would your branching out on my own. te

66 December/January 2017 theenergyst.com